1.1 	A bill for an act
1.2 	relating to education; providing for early childhood, family, and kindergarten 
1.3 	through grade 12 education including general education, education excellence, 
1.4 	special programs, facilities and technology, school district accounting, pupil 
1.5 	transportation, early childhood education, prevention and community education 
1.6 	programs, self-sufficiency and lifelong learning, state agencies, forecast 
1.7 	adjustments, and technical and conforming amendments; establishing task 
1.8 	forces; authorizing rulemaking; appropriating money;amending Minnesota 
1.9 	Statutes 2004, sections 120A.20, subdivision 1; 120A.22, subdivision 3; 
1.10 	120B.023; 120B.024; 120B.36, subdivision 1; 121A.035; 121A.15, subdivision 
1.11 	10; 122A.09, subdivision 4; 122A.18, subdivision 2, by adding a subdivision; 
1.12 	122A.40, subdivision 13; 123A.06, subdivision 2; 123A.44; 123A.441; 
1.13 	123A.442; 123A.443; 123B.10, subdivision 1; 123B.143, subdivision 1; 
1.14 	123B.53, subdivision 5; 123B.749; 123B.77, subdivision 3, by adding a 
1.15 	subdivision; 123B.79, by adding a subdivision; 123B.90, subdivision 2; 123B.91, 
1.16 	by adding a subdivision; 124D.02, subdivisions 2, 4; 124D.10, subdivisions 3, 
1.17 	16; 124D.11, subdivision 9; 124D.518, subdivision 4; 124D.52, subdivision 1; 
1.18 	124D.61; 124D.68, subdivision 3; 124D.86, subdivision 3; 125A.02, subdivision 
1.19 	1; 125A.18; 125A.27, subdivision 11; 125A.29; 125A.30; 125A.32; 125A.33; 
1.20 	125A.48; 125A.515, subdivisions 1, 3, 5, 6, 7, 9, 10; 125A.62, subdivision 
1.21 	1; 125A.63, subdivision 4; 125A.65, subdivisions 3, 4, 6, 8, 10; 125A.69, 
1.22 	subdivision 3; 125A.75, subdivision 1; 125A.76, by adding a subdivision; 
1.23 	126C.05, subdivision 1; 126C.10, subdivisions 6, 29; 126C.44; 127A.41, 
1.24 	subdivision 2; 169.01, subdivision 6; 169.447, subdivision 2; 169.4501, 
1.25 	subdivisions 1, 2; 169.4502, subdivision 5; 169.4503, subdivision 20; 171.321, 
1.26 	subdivision 4; 299F.30; 626.556, subdivision 3c; Minnesota Statutes 2005 
1.27 	Supplement, sections 120B.11, subdivision 2; 120B.131, subdivision 2; 121A.53, 
1.28 	subdivision 1; 122A.415, subdivisions 1, 3; 122A.628; 123B.04, subdivision 
1.29 	2; 123B.53, subdivision 1; 123B.75, subdivision 5; 123B.76, subdivision 3; 
1.30 	123B.92, subdivision 1; 124D.095, subdivision 4; 124D.10, subdivision 6; 
1.31 	124D.68, subdivision 2; 125A.11, subdivision 1; 125A.28; 125A.79, subdivision 
1.32 	1; 126C.10, subdivisions 13a, 24, 34; 126C.17, subdivision 9; 126C.43, 
1.33 	subdivision 2; 127A.45, subdivisions 2, 10; 626.556, subdivision 2;  Laws 2003, 
1.34 	First Special Session chapter 9, article 2, section 51; Laws 2005, First Special 
1.35 	Session chapter 5, article 1, sections 47; 54, subdivisions 2, 3, 5, 6, 7, 8; article 
1.36 	2, sections 81; 84, subdivisions 2, 3, 4, 6, 7, 10, 13, 16; article 3, section 18, 
1.37 	subdivisions 2, 3, 4, 5, 6, 7; article 4, section 25, subdivisions 2, 3, 4; article 5, 
1.38 	section 17, subdivisions 2, 3; article 6, section 1, subdivisions 2, 3, 5; article 
2.1 	7, section 20, subdivisions 2, 3, 4, 5; article 8, section 8, subdivisions 2, 3, 5; 
2.2 	article 9, section 4, subdivision 2; article 10, section 5, subdivision 2; proposing 
2.3 	coding for new law in Minnesota Statutes, chapters 120B; 121A; 122A; 123A; 
2.4 	123B; 124D; repealing Minnesota Statutes 2004, sections 120A.20, subdivision 
2.5 	3; 122A.24; 125A.10; 125A.515, subdivision 2; 169.4502, subdivision 15; 
2.6 	169.4503, subdivisions 17, 18, 26.
2.7 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

2.8 	ARTICLE 1
2.9 	GENERAL EDUCATION

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

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

3.30 	Sec. 3. Minnesota Statutes 2005 Supplement, section 122A.415, subdivision 3, is 
3.31 	amended to read:
3.32 		Subd. 3.Revenue timing. (a) Districts, intermediate school districts, school sites, 
3.33 	or charter schools with approved applications must receive alternative compensation 
3.34 	revenue for each school year that the district, intermediate school district, school site, 
3.35 	or charter school implements an alternative teacher professional pay system under this 
4.1 	subdivision and section 122A.414. For fiscal year 2007 and later, a qualifying district, 
4.2 	intermediate school district, school site, or charter school that received alternative teacher 
4.3 	compensation aid for the previous fiscal year must receive at least an amount of alternative 
4.4 	teacher compensation revenue equal to the lesser of the amount it received for the previous 
4.5 	fiscal year or the amount it qualifies for under subdivision 1 for the current fiscal year if 
4.6 	the district, intermediate school district, school site, or charter school submits a timely 
4.7 	application and the commissioner determines that the district, intermediate school district, 
4.8 	school site, or charter school continues to implement an alternative teacher professional 
4.9 	pay system, consistent with its application under this section.
4.10 	(b) The commissioner shall approve applications that comply with subdivision 1, 
4.11 	and section 122A.414, subdivisions 2, paragraph (b), and 2a, if the applicant is a charter 
4.12 	school, in the order in which they are received, select applicants that qualify for this 
4.13 	program, notify school districts, intermediate school districts, school sites, and charter 
4.14 	schools about the program, develop and disseminate application materials, and carry out 
4.15 	other activities needed to implement this section.
4.16 	(c) For applications approved under this section before August 1 of the fiscal year for 
4.17 	which the aid is paid, the portion of the state total basic alternative teacher compensation 
4.18 	aid entitlement allocated to charter schools must not exceed $522,000 for fiscal year 
4.19 	2006 and $3,374,000 for fiscal year 2007. For fiscal year 2008 and later, the portion of 
4.20 	the state total basic alternative teacher compensation aid entitlement allocated to charter 
4.21 	schools must not exceed the product of $3,374,000 times the ratio of the state total charter 
4.22 	school enrollment for the previous fiscal year to the state total charter school enrollment 
4.23 	for the second previous year fiscal year 2006 times the ratio of the formula allowance for 
4.24 	the current fiscal year to the formula allowance for fiscal year 2007. Additional basic 
4.25 	alternative teacher compensation aid may be approved for charter schools after August 1, 
4.26 	not to exceed the charter school limit for the following fiscal year, if the basic alternative 
4.27 	teacher compensation aid entitlement for school districts and intermediate school districts 
4.28 	based on applications approved by August 1 does not expend the remaining amount under 
4.29 	the limit.

4.30 	Sec. 4. Minnesota Statutes 2004, section 123A.06, subdivision 2, is amended to read:
4.31 		Subd. 2.People to be served. A center shall provide programs for secondary 
4.32 	pupils and adults. A center may also provide programs and services for elementary and 
4.33 	secondary pupils who are not attending the center to assist them in being successful in 
4.34 	school. A center shall use research-based best practices for serving limited English 
4.35 	proficient students and their parents. An individual education plan team may identify a 
5.1 	center as an appropriate placement to the extent a center can provide the student with the 
5.2 	appropriate special education services described in the student's plan. Pupils eligible to 
5.3 	be served are those age five to adults 22 and older who qualify under the graduation 
5.4 	incentives program in section  124D.68, subdivision 2, those enrolled under section 
5.5 	124D.02, subdivision 2, or those pupils who are eligible to receive special education 
5.6 	services under sections  125A.03 to  125A.24, and  125A.65. 

5.7 	Sec. 5. Minnesota Statutes 2005 Supplement, section 123B.76, subdivision 3, is 
5.8 	amended to read:
5.9 		Subd. 3.Expenditures by building. (a) For the purposes of this section, "building" 
5.10 	means education site as defined in section 123B.04, subdivision 1.
5.11 	(b) Each district shall maintain separate accounts to identify general fund 
5.12 	expenditures for each building. All expenditures for regular instruction, secondary 
5.13 	vocational instruction, and school administration must be reported to the department 
5.14 	separately for each building. All expenditures for special education instruction, 
5.15 	instructional support services, and pupil support services provided within a specific 
5.16 	building must be reported to the department separately for each building. Salary 
5.17 	expenditures reported by building must reflect actual salaries for staff at the building and 
5.18 	must not be based on districtwide averages. All other general fund expenditures may be 
5.19 	reported by building or on a districtwide basis.
5.20 	(c) The department must annually report information showing school district general 
5.21 	fund expenditures per pupil by program category for each building and estimated school 
5.22 	district general fund revenue generated by pupils attending each building on its Web 
5.23 	site. For purposes of this report:
5.24 	(1) expenditures not reported by building shall be allocated among buildings on a 
5.25 	uniform per pupil basis;
5.26 	(2) basic skills revenue shall be allocated according to section 126C.10, subdivision 
5.27 	4;
5.28 	(3) secondary sparsity revenue and elementary sparsity revenue shall be allocated 
5.29 	according to section 126C.10, subdivisions 7 and 8;
5.30 	(4) alternative teacher compensation revenue shall be allocated according to section 
5.31 	122A.415, subdivision 1;
5.32 	(5) other general education revenue shall be allocated on a uniform per pupil unit 
5.33 	basis;
5.34 	(5)(6)  first grade preparedness aid shall be allocated according to section 124D.081;
6.1 	(6)(7)  state and federal special education aid and Title I aid shall be allocated in 
6.2 	proportion to district expenditures for these programs by building; and
6.3 	(7)(8) other general fund revenues shall be allocated on a uniform per pupil basis, 
6.4 	except that the department may allocate other revenues attributable to specific buildings 
6.5 	directly to those buildings.

6.6 	Sec. 6. Minnesota Statutes 2004, section 124D.02, subdivision 2, is amended to read:
6.7 		Subd. 2.Secondary school programs. The board may permit a person who is over 
6.8 	the age of 21 or who has graduated from high school to enroll as a part-time student in a 
6.9 	class or program at a secondary school if there is space available. In determining if there is 
6.10 	space available, full-time public school students, eligible for free enrollment under section 
6.11 	120A.20, subdivision 1, and shared-time students shall be given priority over students 
6.12 	seeking enrollment under this subdivision, and students returning to complete a regular 
6.13 	course of study shall be given priority over part-time other students seeking enrollment 
6.14 	pursuant to this subdivision. The following are not prerequisites for enrollment:
6.15 	(1) residency in the school district;
6.16 	(2) United States citizenship; or
6.17 	(3) for a person over the age of 21, a high school diploma or equivalency certificate. 
6.18 	A person may enroll in a class or program even if that person attends evening school, an 
6.19 	adult or continuing education, or a postsecondary educational program or institution.

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

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

7.21 	Sec. 9. Minnesota Statutes 2004, section 124D.68, subdivision 3, is amended to read:
7.22 		Subd. 3.Eligible programs. (a) A pupil who is eligible according to subdivision 2 
7.23 	may enroll in area learning centers under sections  123A.05 to  123A.08. 
7.24 	(b) A pupil who is eligible according to subdivision 2 and who is between the ages 
7.25 	of 16 and 21 may enroll in postsecondary courses under section  124D.09. 
7.26 	(c) A pupil who is eligible under subdivision 2, may enroll in any public elementary 
7.27 	or secondary education program. However, a person who is eligible according to 
7.28 	subdivision 2, clause (b), may enroll only if the school board has adopted a resolution 
7.29 	approving the enrollment.
7.30 	(d) A pupil who is eligible under subdivision 2, may enroll in any nonpublic, 
7.31 	nonsectarian school that has contracted with the serving school district to provide 
7.32 	educational services.
7.33 	(e) A pupil who is between the ages of 16 and 21 may enroll in any adult basic 
7.34 	education programs approved under section  124D.52 and operated under the community 
7.35 	education program contained in section  124D.19. 

8.1 	Sec. 10. Minnesota Statutes 2004, section 125A.65, subdivision 3, is amended to read:
8.2 		Subd. 3.Educational program; tuition. (a) When it is determined pursuant to 
8.3 	section  125A.69, subdivision 1 or 2, that the child is entitled to attend either school, 
8.4 	the board of the Minnesota State Academies must provide the appropriate educational 
8.5 	program for the child. 
8.6 	(b) For fiscal year 2006, the board of the Minnesota State Academies must make a 
8.7 	tuition charge to the child's district of residence for the cost of providing the program. 
8.8 	The amount of tuition charged must not exceed the sum of (1) the general education 
8.9 	revenue formula allowance times the pupil unit weighting factor pursuant to section  
8.10 	126C.05 for that child, for the amount of time the child is in the program, plus (2) if 
8.11 	the child was enrolled at the Minnesota State Academies on October 1 of the previous 
8.12 	fiscal year, the compensatory education revenue attributable to that child under section 
8.13 	126C.10, subdivision 3. The district of the child's residence must pay the tuition and 
8.14 	may claim general education aid for the child. Tuition received by the board of the 
8.15 	Minnesota State Academies, except for tuition for compensatory education revenue under 
8.16 	this paragraph and tuition received under subdivision 4, must be deposited in the state 
8.17 	treasury as provided in subdivision 8. 
8.18 	(c) For fiscal year 2007 and later, the district of the child's residence shall 
8.19 	claim general education revenue for the child, except as provided in this paragraph. 
8.20 	Notwithstanding section 127A.47, subdivision 1, an amount equal to the general education 
8.21 	revenue formula allowance times the pupil unit weighting factor pursuant to section 
8.22 	126C.05 for that child for the amount of time the child is in the program, as adjusted 
8.23 	according to subdivision 8, paragraph (d), must be paid to the Minnesota State Academies. 
8.24 	Notwithstanding section 126C.15, subdivision 2, paragraph (d), the compensatory 
8.25 	education revenue under section 126C.10, subdivision 3, attributable to children enrolled at 
8.26 	the Minnesota State Academies on October 1 of the previous fiscal year must be paid to the 
8.27 	Minnesota State Academies. General education aid paid to the Minnesota State Academies 
8.28 	under this paragraph must be credited to their general operation account. Other general 
8.29 	education aid attributable to the child must be paid to the district of the child's residence.

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

9.16 	Sec. 12. Minnesota Statutes 2004, section 125A.65, subdivision 6, is amended to read:
9.17 		Subd. 6.Tuition reduction. Notwithstanding the provisions of subdivisions 3 and 
9.18 	5, the board of the Minnesota State Academies may agree to make a tuition charge, or 
9.19 	receive an aid adjustment, as applicable,  for less than the amount specified in subdivision 
9.20 	3 for pupils attending the applicable school who are residents of the district where the 
9.21 	institution is located and who do not board at the institution, if that district agrees to make 
9.22 	a tuition charge to the board of the Minnesota State Academies for less than the amount 
9.23 	specified in subdivision 5 for providing appropriate educational programs to pupils 
9.24 	attending the applicable school.

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

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

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

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

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

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

12.29 	Sec. 18. Minnesota Statutes 2005 Supplement, section 126C.10, subdivision 13a, 
12.30 	is amended to read:
12.31 		Subd. 13a.Operating capital levy. To obtain operating capital revenue for fiscal 
12.32 	year 2007 and later, a district may levy an amount not more than the product of its 
12.33 	operating capital revenue for the fiscal year times the lesser of one or the ratio of its 
12.34 	adjusted net tax capacity per adjusted marginal cost pupil unit to the operating capital 
13.1 	equalizing factor. The operating capital equalizing factor equals $22,222 for fiscal year 
13.2 	2006, and $10,700 for fiscal year 2007, and $35,000 for fiscal year 2008  and later.

13.3 	EFFECTIVE DATE. This section is effective for revenue for fiscal year 2008. 

13.4 	Sec. 19. Minnesota Statutes 2004, section 126C.10, subdivision 29, is amended to read:
13.5 		Subd. 29.Equity levy. To obtain equity revenue for fiscal year 2005 and later, 
13.6 	a district may levy an amount not more than the product of its equity revenue under 
13.7 	subdivision 24, excluding the revenue computed under paragraphs (f) and (g) of that 
13.8 	subdivision for the fiscal year times the lesser of one or the ratio of its referendum market 
13.9 	value per resident marginal cost pupil unit to $476,000.

13.10 	EFFECTIVE DATE. This section is effective for revenue for fiscal year 2008.

13.11 	Sec. 20. Minnesota Statutes 2005 Supplement, section 126C.10, subdivision 34, 
13.12 	is amended to read:
13.13 		Subd. 34.Basic alternative teacher compensation aid. (a) For fiscal year 2006, 
13.14 	the basic alternative teacher compensation aid for a school district or an intermediate 
13.15 	school district with a plan approved under section 122A.414, subdivision 2b, equals the 
13.16 	alternative teacher compensation revenue under section 122A.415, subdivision 1. The 
13.17 	basic alternative teacher compensation aid for a charter school with an approved plan 
13.18 	under section 122A.414, subdivision 2b, equals $260 times the number of pupils enrolled 
13.19 	in the school on October 1 of the previous school year, or on October 1 of the current 
13.20 	fiscal year for a charter school in the first year of operation.
13.21 	(b) For fiscal year 2007 and later, the basic alternative teacher compensation aid 
13.22 	for a school district with a plan approved under section 122A.414, subdivision 2b, equals 
13.23 	73.1 percent of the alternative teacher compensation revenue under section 122A.415, 
13.24 	subdivision 1. The basic alternative teacher compensation aid for an intermediate school 
13.25 	district or charter school with a plan approved under section 122A.414, subdivisions 2a 
13.26 	and 2b, if the recipient is a charter school, equals $260 times the number of pupils enrolled 
13.27 	in the school on October 1 of the previous fiscal year, or on October 1 of the current fiscal 
13.28 	year for a charter school in the first year of operation, times the ratio of the sum of the 
13.29 	alternative teacher compensation aid and alternative teacher compensation levy for all 
13.30 	participating school districts to the maximum alternative teacher compensation revenue 
13.31 	for those districts under section 122A.415, subdivision 1.
13.32 	(c) For fiscal year 2008 and later, the basic alternative teacher compensation aid for 
13.33 	a school district with a plan approved under section 122A.414, subdivision 2b, equals the 
14.1 	alternative teacher compensation revenue under section 122A.415, subdivision 1, minus 
14.2 	$70 times the number of pupils enrolled at participating sites on October 1 of the previous 
14.3 	fiscal year. The basic alternative teacher compensation aid for an intermediate school 
14.4 	district or charter school with a plan approved under section 122A.414, subdivisions 2a 
14.5 	and 2b, if the recipient is a charter school, equals $260 times the ratio of the formula 
14.6 	allowance for the current fiscal year to the formula allowance for fiscal year 2007 times 
14.7 	the number of pupils enrolled in the school on October 1 of the previous fiscal year, or on 
14.8 	October 1 of the current fiscal year for a charter school in the first year of operation, times 
14.9 	the ratio of the sum of the alternative teacher compensation aid and alternative teacher 
14.10 	compensation levy for all participating school districts to the maximum alternative teacher 
14.11 	compensation revenue for those districts under section 122A.415, subdivision 1.
14.12 	(d) Notwithstanding paragraphs (a) and, (b), and (c) and section 122A.415, 
14.13 	subdivision 1, the state total basic alternative teacher compensation aid entitlement 
14.14 	must not exceed $19,329,000 for fiscal year 2006 and, $75,636,000 for fiscal year 2007 
14.15 	and later, and for fiscal year 2008 and later, $75,636,000 times the ratio of the formula 
14.16 	allowance for the current fiscal year to the formula allowance for fiscal year 2007. The 
14.17 	commissioner must limit the amount of alternative teacher compensation aid approved 
14.18 	under section sections122A.415 and 122A.416 so as not to exceed these limits.

14.19 	Sec. 21. Minnesota Statutes 2005 Supplement, section 126C.17, subdivision 9, is 
14.20 	amended to read:
14.21 		Subd. 9.Referendum revenue. (a) The revenue authorized by section 126C.10, 
14.22 	subdivision 1, may be increased in the amount approved by the voters of the district at a 
14.23 	referendum called for the purpose. The referendum may be called by the board or shall be 
14.24 	called by the board upon written petition of qualified voters of the district. The referendum 
14.25 	must be conducted one or two calendar years before the increased levy authority, if 
14.26 	approved, first becomes payable. Only one election to approve an increase may be held 
14.27 	in a calendar year. Unless the referendum is conducted by mail under paragraph (g), the 
14.28 	referendum must be held on the first Tuesday after the first Monday in November. The 
14.29 	ballot must state the maximum amount of the increased revenue per resident marginal cost 
14.30 	pupil unit. The ballot may state a schedule, determined by the board, of increased revenue 
14.31 	per resident marginal cost pupil unit that differs from year to year over the number of 
14.32 	years for which the increased revenue is authorized or may state that the amount shall 
14.33 	increase annually by the rate of inflation. For this purpose, the rate of inflation shall be the 
14.34 	annual inflationary increase calculated under subdivision 2, paragraph (b). The ballot may 
14.35 	state that existing referendum levy authority is expiring. In this case, the ballot may also 
15.1 	compare the proposed levy authority to the existing expiring levy authority, and express 
15.2 	the proposed increase as the amount, if any, over the expiring referendum levy authority. 
15.3 	The ballot must designate the specific number of years, not to exceed ten, for which the 
15.4 	referendum authorization applies. The ballot, including a ballot on the question to revoke 
15.5 	or reduce the increased revenue amount under paragraph (c), must abbreviate the term 
15.6 	"per resident marginal cost pupil unit" as "per pupil." The notice required under section 
15.7 	275.60 may be modified to read, in cases of renewing existing levies:
15.8 	"BY VOTING "YES" ON THIS BALLOT QUESTION, YOU MAY BE VOTING 
15.9 	FOR A PROPERTY TAX INCREASE."
15.10 	The ballot may contain a textual portion with the information required in this 
15.11 	subdivision and a question stating substantially the following:
15.12 	"Shall the increase in the revenue proposed by (petition to) the board of ........., 
15.13 	School District No. .., be approved?"
15.14 	If approved, an amount equal to the approved revenue per resident marginal cost 
15.15 	pupil unit times the resident marginal cost pupil units for the school year beginning in 
15.16 	the year after the levy is certified shall be authorized for certification for the number of 
15.17 	years approved, if applicable, or until revoked or reduced by the voters of the district at a 
15.18 	subsequent referendum.
15.19 	(b) The board must prepare and deliver by first class mail at least 15 days but no more 
15.20 	than 30 days before the day of the referendum to each taxpayer a notice of the referendum 
15.21 	and the proposed revenue increase. The board need not mail more than one notice to any 
15.22 	taxpayer. For the purpose of giving mailed notice under this subdivision, owners must be 
15.23 	those shown to be owners on the records of the county auditor or, in any county where 
15.24 	tax statements are mailed by the county treasurer, on the records of the county treasurer. 
15.25 	Every property owner whose name does not appear on the records of the county auditor 
15.26 	or the county treasurer is deemed to have waived this mailed notice unless the owner 
15.27 	has requested in writing that the county auditor or county treasurer, as the case may be, 
15.28 	include the name on the records for this purpose. The notice must project the anticipated 
15.29 	amount of tax increase in annual dollars for typical residential homesteads, agricultural 
15.30 	homesteads, apartments, and commercial-industrial property within the school district.
15.31 	The notice for a referendum may state that an existing referendum levy is expiring 
15.32 	and project the anticipated amount of increase over the existing referendum levy in 
15.33 	the first year, if any, in annual dollars for typical residential homesteads, agricultural 
15.34 	homesteads, apartments, and commercial-industrial property within the district.
15.35 	The notice must include the following statement: "Passage of this referendum will 
15.36 	result in an increase in your property taxes." However, in cases of renewing existing 
16.1 	levies, the notice may include the following statement: "Passage of this referendum may 
16.2 	result in an increase in your property taxes."
16.3 	(c) A referendum on the question of revoking or reducing the increased revenue 
16.4 	amount authorized pursuant to paragraph (a) may be called by the board and shall be called 
16.5 	by the board upon the written petition of qualified voters of the district. A referendum to 
16.6 	revoke or reduce the revenue amount must state the amount per resident marginal cost 
16.7 	pupil unit by which the authority is to be reduced. Revenue authority approved by the 
16.8 	voters of the district pursuant to paragraph (a) must be available to the school district at 
16.9 	least once before it is subject to a referendum on its revocation or reduction for subsequent 
16.10 	years. Only one revocation or reduction referendum may be held to revoke or reduce 
16.11 	referendum revenue for any specific year and for years thereafter.
16.12 	(d) A petition authorized by paragraph (a) or (c) is effective if signed by a number of 
16.13 	qualified voters in excess of 15 percent of the registered voters of the district on the day 
16.14 	the petition is filed with the board. A referendum invoked by petition must be held on the 
16.15 	date specified in paragraph (a).
16.16 	(e) The approval of 50 percent plus one of those voting on the question is required to 
16.17 	pass a referendum authorized by this subdivision.
16.18 	(f) At least 15 days before the day of the referendum, the district must submit a 
16.19 	copy of the notice required under paragraph (b) to the commissioner and to the county 
16.20 	auditor of each county in which the district is located. Within 15 days after the results 
16.21 	of the referendum have been certified by the board, or in the case of a recount, the 
16.22 	certification of the results of the recount by the canvassing board, the district must notify 
16.23 	the commissioner of the results of the referendum.

16.24 	EFFECTIVE DATE. This section is effective for referenda conducted on or after 
16.25 	July 1, 2006.

16.26 	Sec. 22. Minnesota Statutes 2005 Supplement, section 126C.43, subdivision 2, is 
16.27 	amended to read:
16.28 		Subd. 2.Payment to unemployment insurance program trust fund by state 
16.29 	and political subdivisions. (a) A district may levy the amount necessary (i) (1) to pay 
16.30 	the district's obligations under section 268.052, subdivision 1, and (ii) (2) to pay for job 
16.31 	placement services offered to employees who may become eligible for benefits pursuant 
16.32 	to section 268.085 for the fiscal year the levy is certified.
16.33 	(b) Districts with a balance remaining in their reserve for reemployment as of June 
16.34 	30, 2003, may not expend the reserved funds for future reemployment expenditures. Each 
16.35 	year, a levy reduction must be made to return these funds to taxpayers. The amount of 
17.1 	the levy reduction must be equal to the lesser of (1) the remaining reserved balance for 
17.2 	reemployment or (2) the amount of the district's current levy under paragraph (a).

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

17.4 	Sec. 23. Minnesota Statutes 2004, section 126C.44, is amended to read:
17.5 	126C.44 SAFE SCHOOLS LEVY.
17.6 	(a) Each district may make a levy on all taxable property located within the district 
17.7 	for the purposes specified in this section. The maximum amount which may be levied 
17.8 	for all costs under this section shall be equal to $27 multiplied by the district's adjusted 
17.9 	marginal cost pupil units for the school year. The proceeds of the levy must be used for 
17.10 	directly funding the following purposes or for reimbursing the cities and counties who 
17.11 	contract with the district for the following purposes: (1) to pay the costs incurred for the 
17.12 	salaries, benefits, and transportation costs of peace officers and sheriffs for liaison in 
17.13 	services in the district's schools; (2) to pay the costs for a drug abuse prevention program 
17.14 	as defined in section  609.101, subdivision 3, paragraph (e), in the elementary schools; 
17.15 	(3) to pay the costs for a gang resistance education training curriculum in the district's 
17.16 	schools; (4) to pay the costs for security in the district's schools and on school property; 
17.17 	or (5) to pay the costs for other crime prevention, drug abuse, student and staff safety, 
17.18 	and violence prevention measures taken by the school district; or (6) to pay the costs of 
17.19 	school counselors, school psychologists, school nurses, chemical dependency counselors, 
17.20 	or school social workers. For expenditures under clause (1), the district must initially 
17.21 	attempt to contract for services to be provided by peace officers or sheriffs with the police 
17.22 	department of each city or the sheriff's department of the county within the district 
17.23 	containing the school receiving the services. If a local police department or a county 
17.24 	sheriff's department does not wish to provide the necessary services, the district may 
17.25 	contract for these services with any other police or sheriff's department located entirely or 
17.26 	partially within the school district's boundaries. The levy authorized under this section is 
17.27 	not included in determining the school district's levy limitations.
17.28 	(b) A school district that is a member of an intermediate school district may 
17.29 	include in its authority under this section the costs associated with safe schools activities 
17.30 	authorized under paragraph (a) for intermediate school district programs.  This authority 
17.31 	must not exceed $8 times the adjusted marginal cost pupil units of the member districts. 
17.32 	This authority is in addition to any other authority authorized under this section.  Revenue 
17.33 	raised under this paragraph must be transferred to the intermediate school district. 
17.34 	By September 15 of each year, each intermediate school district must report to the 
18.1 	commissioner of education in the form and manner prescribed by the commissioner on the 
18.2 	transfer of safe schools revenue from its member school districts and the expenditures 
18.3 	made with that revenue during the previous year.

18.4 	EFFECTIVE DATE. This section is effective for taxes payable in 2007. 

18.5 	Sec. 24. Laws 2005, First Special Session chapter 5, article 1, section 54, subdivision 
18.6 	2, is amended to read:
18.7 	Subd. 2.  General education aid. For general education  aid under Minnesota 
18.8 	Statutes, section 126C.13, subdivision 4:  

18.918.10
		$
	5,136,578,000
5,819,153,000
	.....
	2006
	
18.11
18.12		$
	5,390,196,000
5,472,265,000
	.....
	2007
	
18.13 	The 2006 appropriation includes $784,978,000 $787,978,000 for 2005 and  
18.14 	$4,351,600,000 $5,031,175,000 for 2006.  
18.15 	The 2007 appropriation includes $817,588,000 $513,848,000 for 2006 and  
18.16 	$4,572,608,000 $4,958,417,000 for 2007.

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

18.18 	Sec. 25. EXEMPTION FROM OPERATING REFERENDUM CAP; 
18.19 	CHOKIO-ALBERTA.
 18.20 	Notwithstanding Minnesota Statutes, section 126C.17, subdivision 2, Independent 
18.21 	School District No. 771, Chokio-Alberta, is exempt from the referendum allowance 
18.22 	limit for fiscal years 2006 and later.

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

18.24 	Sec. 26. EARLY LEVY RECOGNITION; WILLOW RIVER.
 18.25 	Notwithstanding Minnesota Statutes, sections 123B.75 and 127A.441, if Independent 
18.26 	School District No. 577, Willow River, successfully approves an operating referendum in 
18.27 	September 2006, the district may recognize up to 50 percent of the operating referendum 
18.28 	levy approved at that election as revenue for the fiscal year in which it is certified. This 
18.29 	early recognition applies only to referendum authority approved in September 2006.

19.1 	EFFECTIVE DATE. This section is effective for revenue for fiscal year 2007 
19.2 	and later.

19.3 	Sec. 27. APPROPRIATION.
 19.4 		Subdivision 1.Department of Education. The sums indicated in this section are 
19.5 	appropriated from the general fund to the Department of Education for the fiscal years 
19.6 	designated.
19.7 		Subd. 2.Rocori school district. For a grant to Independent School District No. 750, 
19.8 	Rocori. The grant is for a continuation of district activities that were developed in concert 
19.9 	with the district's federal School Emergency Response to Violence, or Project SERV, grant: 

19.10		$
	50,000
	.....
	2007
	
19.11 	The grant may be used to continue the district's recovery efforts and uses include: 
19.12 	an assessment of educational adequacy; an organizational analysis; a strategic planning 
19.13 	overview; a district assessment survey; continued recovery support; staff development 
19.14 	initiatives; and any other activities developed in response to the federal Project SERV 
19.15 	grant.

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

19.17 	Sec. 28.  REPEALER.
 19.18 	Minnesota Statutes 2004, section 120A.20, subdivision 3, is repealed.

19.19 	ARTICLE 2
19.20 	EDUCATION EXCELLENCE

19.21 	Section 1. Minnesota Statutes 2004, section 120A.22, subdivision 3, is amended to 
19.22 	read:
19.23 		Subd. 3.Parent defined; residency determined. (a) In this section and sections  
19.24 	120A.24 and  120A.26, "parent" means a parent, guardian, or other person having legal 
19.25 	custody of a child. 
19.26 	(b) In sections  125A.03 to  125A.24 and  125A.65, "parent" means a parent, guardian, 
19.27 	or other person having legal custody of a child under age 18. For an unmarried pupil age 
19.28 	18 or over, "parent" means the pupil unless a guardian or conservator has been appointed, 
19.29 	in which case it means the guardian or conservator. 
19.30 	(c) For purposes of sections  125A.03 to  125A.24 and  125A.65, the school district of 
19.31 	residence for an unmarried pupil age 18 or over who is a parent under paragraph (b) and 
20.1 	who is placed in a center for care and treatment, shall be the school district in which the 
20.2 	pupil's biological or adoptive parent or designated guardian resides. 
20.3 	(d) For a married pupil age 18 or over, the school district of residence is the school 
20.4 	district in which the married pupil resides.
20.5 	(e) If a district suspects that a student does not meet the residency requirements of the 
20.6 	school district in which the student is attending school, the student may be removed from 
20.7 	the school only after the district sends the student's parents written notice of the district's 
20.8 	suspicion, including the facts upon which the suspicion is based, and an opportunity to 
20.9 	provide documentary evidence of residency in person to the superintendent or designee, 
20.10 	or, at the option of the parents, by sending the documentary evidence to the superintendent 
20.11 	or a designee, who will then make a determination as to the residency status of the student.

20.12 	Sec. 2. Minnesota Statutes 2004, section 120B.023, is amended to read:
20.13 	120B.023 BENCHMARKS.
20.14 		Subdivision 1.Benchmarks implement, supplement statewide academic 
20.15 	standards. (a) The commissioner must supplement required state academic standards with 
20.16 	grade-level benchmarks. High school benchmarks may cover more than one grade. The 
20.17 	benchmarks must implement statewide academic standards by specifying the academic 
20.18 	knowledge and skills that schools must offer and students must achieve to satisfactorily 
20.19 	complete a state standard. The commissioner must publish benchmarks are published to 
20.20 	inform and guide parents, teachers, school districts, and other interested persons and for to
20.21 	use in developing tests consistent with the benchmarks.
20.22 	(b) The commissioner shall publish benchmarks in the State Register and transmit 
20.23 	the benchmarks in any other manner that makes them accessible to the general public. The 
20.24 	commissioner may charge a reasonable fee for publications.
20.25 	(c) Once established, the commissioner may change the benchmarks only with 
20.26 	specific legislative authorization and after completing a review under paragraph (d)
20.27 	subdivision 2.
20.28 	(d) The commissioner must develop and implement a system for reviewing on 
20.29 	a four-year cycle each of the required academic standards and related benchmarks and 
20.30 	elective standards beginning in the 2006-2007 school year on a periodic cycle, consistent 
20.31 	with subdivision 2.
20.32 	(e) The benchmarks are not subject to chapter 14 and section  14.386 does not apply. 
20.33 		Subd. 2.Revisions and reviews required. (a) The education commissioner must 
20.34 	revise and appropriately embed technology design and information literacy standards into 
20.35 	the state's academic standards and graduation requirements and implement a six-year 
21.1 	review cycle for state academic standards and related benchmarks, consistent with this 
21.2 	subdivision. During each review cycle, the commissioner also must examine the alignment 
21.3 	of each required academic standard and related benchmark with the knowledge and skills 
21.4 	students need for college readiness and advanced work in the particular subject area.
21.5 	(b) The commissioner in the 2006-2007 school year must revise and align the state's 
21.6 	academic standards and high school graduation requirements in mathematics to require 
21.7 	that students satisfactorily complete the revised mathematics standards, beginning in the 
21.8 	2010-2011 school year. Under the revised standards:
21.9 	(1) students must satisfactorily complete an algebra I credit by the end of eighth 
21.10 	grade; and
21.11 	(2) students scheduled to graduate in the 2014-2015 school year or later must 
21.12 	satisfactorily complete an algebra II credit or its equivalent.
21.13 	The commissioner also must ensure that the statewide mathematics assessments 
21.14 	administered to students in grades 3 through 8 and 11 beginning in the 2010-2011 school 
21.15 	year are aligned with the state academic standards in mathematics. The statewide 11th 
21.16 	grade math test administered to students under clause (2) beginning in the 2013-2014 
21.17 	school year must include algebra II test items that are aligned with corresponding state 
21.18 	academic standards in mathematics. The commissioner must implement a six-year review 
21.19 	cycle for the academic standards and related benchmarks in mathematics beginning in the 
21.20 	2015-2016 school year.
21.21 	(c) The commissioner in the 2007-2008 school year must revise and align the state's 
21.22 	academic standards and high school graduation requirements in the arts to require that 
21.23 	students satisfactorily complete the revised arts standards beginning in the 2010-2011 
21.24 	school year. The commissioner must implement a six-year review cycle for the academic 
21.25 	standards and related benchmarks in arts beginning in the 2016-2017 school year.
21.26 	(d) The commissioner in the 2008-2009 school year must revise and align the state's 
21.27 	academic standards and high school graduation requirements in science to require that 
21.28 	students satisfactorily complete the revised science standards, beginning in the 2011-2012 
21.29 	school year. Under the revised standards, students scheduled to graduate in the 2014-2015 
21.30 	school year or later must satisfactorily complete a chemistry or physics credit. The 
21.31 	commissioner must implement a six-year review cycle for the academic standards and 
21.32 	related benchmarks in science beginning in the 2017-2018 school year.
21.33 	(e) The commissioner in the 2009-2010 school year must revise and align the state's 
21.34 	academic standards and high school graduation requirements in language arts to require 
21.35 	that students satisfactorily complete the revised language arts standards beginning in 
21.36 	the 2012-2013 school year. The commissioner must implement a six-year review cycle 
22.1 	for the academic standards and related benchmarks in language arts beginning in the 
22.2 	2018-2019 school year.
22.3 	(f) The commissioner in the 2010-2011 school year must revise and align the state's 
22.4 	academic standards and high school graduation requirements in social studies to require 
22.5 	that students satisfactorily complete the revised social studies standards beginning in 
22.6 	the 2013-2014 school year. The commissioner must implement a six-year review cycle 
22.7 	for the academic standards and related benchmarks in social studies beginning in the 
22.8 	2019-2020 school year.
22.9 	(g) School districts and charter schools must revise and align local academic 
22.10 	standards and high school graduation requirements in health, physical education, world 
22.11 	languages, and career and technical education to require students to complete the revised 
22.12 	standards beginning in a school year determined by the school district or charter school. 
22.13 	School districts and charter schools must formally establish a periodic review cycle for 
22.14 	the academic standards and related benchmarks in health, physical education, world 
22.15 	languages, and career and technical education.

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

22.17 	Sec. 3. Minnesota Statutes 2004, section 120B.024, is amended to read:
22.18 	120B.024 GRADUATION REQUIREMENTS; COURSE CREDITS; 
22.19 	STUDENT TRANSFERS.
22.20 	(a) Students beginning 9th grade in the 2004-2005 school year and later must 
22.21 	successfully complete the following high school level course credits for graduation:
22.22 	(1) four credits of language arts;
22.23 	(2) three credits of mathematics, encompassing at least algebra, geometry, statistics, 
22.24 	and probability sufficient to satisfy the academic standard and beginning in the 2010-2011 
22.25 	school year for students scheduled to graduate in the 2014-2015 school year or later, one 
22.26 	algebra II credit or its equivalent;
22.27 	(3) three credits of science, including at least one credit in biology and for the 
22.28 	2011-2012 school year and later, one credit in chemistry or physics;
22.29 	(4) three and one-half credits of social studies, encompassing at least United 
22.30 	States history, geography, government and citizenship, world history, and economics or 
22.31 	three credits of social studies encompassing at least United States history, geography, 
22.32 	government and citizenship, and world history, and one-half credit of economics taught in 
22.33 	a school's social studies, agriculture education,  or business department;
22.34 	(5) one credit in the arts; and
23.1 	(6) a minimum of seven elective course credits.
23.2 	A course credit is equivalent to a student successfully completing an academic 
23.3 	year of study or a student mastering the applicable subject matter, as determined by the 
23.4 	local school district.
23.5 	(b) An agriculture science course may fulfill a science credit requirement under 
23.6 	this section.
23.7 	(c) A district, area learning center, and charter school must establish processes by 
23.8 	which to transfer as completed: 
23.9 	(1) those course credit requirements that other school sites within the district or 
23.10 	other public schools verify on transcripts as completed; and
23.11 	(2) the work that educational institutions outside the state accept for completing the 
23.12 	equivalent of course credit requirements and verify on transcripts as completed.

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

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

23.25 	Sec. 5. [120B.132] RAISED ACADEMIC ACHIEVEMENT; ADVANCED 
23.26 	PLACEMENT AND INTERNATIONAL BACCALAUREATE PROGRAMS.
23.27 		Subdivision 1.Establishment; eligibility.  A program is established to raise 
23.28 	kindergarten through grade 12 academic achievement through increased student 
23.29 	participation in advanced placement and international baccalaureate programs, consistent 
23.30 	with section 120B.13.  Schools and charter schools eligible to participate under this section:
23.31 	(a) must have a three-year plan approved by the local school board to establish a new 
23.32 	international baccalaureate program leading to international baccalaureate authorization, 
23.33 	or expand an existing program that leads to international baccalaureate authorization, or 
23.34 	expand an existing authorized international baccalaureate program; or
24.1 	(b) must have a three-year plan approved by the local school board to create a new or 
24.2 	expand an existing program to implement the college board advanced placement courses 
24.3 	and exams or preadvanced placement initiate; and
24.4 	(c) also must propose to further raise students' academic achievement by:
24.5 	(1) increasing the availability of and all students' access to advanced placement or 
24.6 	international baccalaureate courses or programs; 
24.7 	(2) expanding the breadth of advanced placement or international baccalaureate 
24.8 	courses or programs that are available to students; 
24.9 	(3) increasing the number and the diversity of the students who participate in 
24.10 	advanced placement or international baccalaureate courses or programs and succeed; 
24.11 	(4) providing low-income and other disadvantaged students with increased access to 
24.12 	advanced placement or international baccalaureate courses or programs; or 
24.13 	(5) increasing the number of high school students, including low-income and other 
24.14 	disadvantaged students, who receive college credit by successfully completing advanced 
24.15 	placement or international baccalaureate courses or programs and achieving satisfactory 
24.16 	scores on related exams. 
24.17 		Subd. 2. Application and review process; funding priority.  (a) Charter schools 
24.18 	and school districts in which eligible schools under subdivision 1 are located may apply to 
24.19 	the commissioner, in the form and manner the commissioner determines, for competitive 
24.20 	funding to further raise students' academic achievement.  The application must detail the 
24.21 	specific efforts the applicant intends to undertake in further raising students' academic 
24.22 	achievement, consistent with subdivision 1, and a proposed budget detailing the district or 
24.23 	charter school's current and proposed expenditures for advanced placement, preadvanced 
24.24 	placement, and international baccalaureate courses and programs. The proposed 
24.25 	budget must demonstrate that the applicant's efforts will supplement but not supplant 
24.26 	any expenditures for advanced placement, preadvanced placement, and international 
24.27 	baccalaureate courses and programs the applicant currently makes available to students. 
24.28 	Expenditures for administration must not exceed five percent of the proposed budget. The 
24.29 	commissioner may require an applicant to provide additional information.
24.30 	(b) When reviewing applications, the commissioner must determine whether 
24.31 	the applicant satisfied all the requirements in this subdivision and subdivision 1. 
24.32 	The commissioner may give funding priority to an otherwise qualified applicant that 
24.33 	demonstrates:
24.34 	(1) a focus on developing or expanding advanced placement or international 
24.35 	baccalaureate courses or programs or increasing students' participation in, access to, or 
25.1 	success with the courses or programs, including the participation, access, or success of 
25.2 	low-income and other disadvantaged students; 
25.3 	(2) a compelling need for access to advanced placement or international 
25.4 	baccalaureate courses or programs; 
25.5 	(3) an effective ability to actively involve local business and community 
25.6 	organizations in student activities that are integral to advanced placement or international 
25.7 	baccalaureate courses or programs; 
25.8 	(4) access to additional public or nonpublic funds or in-kind contributions that are 
25.9 	available for advanced placement or international baccalaureate courses or programs; or 
25.10 	(5) an intent to implement activities that target low-income and other disadvantaged 
25.11 	students. 
25.12 		Subd. 3. Funding; permissible funding uses.  (a) The commissioner shall award 
25.13 	grants to applicant school districts and charter schools that meet the requirements of 
25.14 	subdivisions 1 and 2. The commissioner must award grants on an equitable geographical 
25.15 	basis to the extent feasible and consistent with this section. Grant awards must not exceed 
25.16 	the lesser of: (1) $85 times the number of pupils enrolled at the participating sites on 
25.17 	October 1 of the previous fiscal year, or (2) the approved supplemental expenditures 
25.18 	based on the budget submitted under subdivision 2. For charter schools in their first 
25.19 	year of operation, the maximum grant award must be calculated using the number of 
25.20 	pupils enrolled on October 1 of the current fiscal year. The commissioner may adjust 
25.21 	the maximum grant award computed using prior year data for changes in enrollment 
25.22 	attributable to school closings, school openings, grade level reconfigurations, or school 
25.23 	district reorganizations between the prior fiscal year and the current fiscal year. 
25.24 	(b) School districts and charter schools that submit an application and receive 
25.25 	funding under this section must use the funding, consistent with the application,  to:
25.26 	(1) provide teacher training and instruction to more effectively serve students, 
25.27 	including low-income and other disadvantaged students, who participate in advanced 
25.28 	placement or international baccalaureate courses or programs; 
25.29 	(2) further develop advanced placement or international baccalaureate courses or 
25.30 	programs; 
25.31 	(3) improve the transition between grade levels to better prepare students, including 
25.32 	low-income and other disadvantaged students, for succeeding in advanced placement or 
25.33 	international baccalaureate courses or programs; 
25.34 	(4) purchase books and supplies; 
25.35 	(5) pay course or program fees; 
26.1 	(6) increase students' participation in and success with advanced placement or 
26.2 	international baccalaureate courses or programs; 
26.3 	(7) expand students' access to advanced placement or international baccalaureate 
26.4 	courses or programs through online learning; 
26.5 	(8) hire appropriately licensed personnel to teach additional advanced placement or 
26.6 	international baccalaureate courses or programs; or 
26.7 	(9) engage in other activity directly related to expanding students' access to, 
26.8 	participation in, and success with advanced placement or international baccalaureate 
26.9 	courses or programs, including low-income and other disadvantaged students.
26.10 		Subd. 4. Annual reports.  (a) Each school district and charter school that receives 
26.11 	a grant under this section annually must collect demographic and other student data to 
26.12 	demonstrate and measure the extent to which the district or charter school raised students' 
26.13 	academic achievement under this program and must report the data to the commissioner 
26.14 	in the form and manner the commissioner determines. The commissioner annually by 
26.15 	February 15 must make summary data about this program available to the education 
26.16 	policy and finance committees of the legislature.
26.17 	(b) Each school district and charter school that receives a grant under this section 
26.18 	annually must report to the commissioner, consistent with the Uniform Financial 
26.19 	Accounting and Reporting Standards, its actual expenditures for advanced placement, 
26.20 	preadvanced placement, and international baccalaureate courses and programs. The report 
26.21 	must demonstrate that the school district or charter school has maintained its effort 
26.22 	from other sources for advanced placement, preadvanced placement, and international 
26.23 	baccalaureate courses and programs compared with the previous fiscal year, and the 
26.24 	district or charter school has expended all grant funds, consistent with its approved budget. 

26.25 	EFFECTIVE DATE. This section is effective the day following final enactment 
26.26 	and applies to the 2006-2007 school year. 

26.27 	Sec. 6. Minnesota Statutes 2004, section 120B.36, subdivision 1, is amended to read:
26.28 		Subdivision 1.School performance report cards. (a) The commissioner shall 
26.29 	use objective criteria based on levels of student performance to identify four to six 
26.30 	designations applicable to high and low performing public schools. The objective criteria 
26.31 	shall include at least student academic performance, school safety, and staff characteristics, 
26.32 	with a value-added growth component added by the 2006-2007 school year.
26.33 	(b) The commissioner shall develop, annually update, and post on the department 
26.34 	Web site school performance report cards. A school's designation must be clearly stated 
26.35 	on each school performance report card. The performance report cards must indicate both 
27.1 	the cut scores and the corresponding percentages of items students must answer correctly 
27.2 	at each set performance level adopted for the statewide tests the commissioner uses to 
27.3 	determine school designations under this section. 
27.4 	(c) The commissioner must make available the first school designations and school 
27.5 	performance report cards by November 2003, and during the beginning of each school 
27.6 	year thereafter.
27.7 	(d) A school or district may appeal in writing a designation under this section to the 
27.8 	commissioner within 30 days of receiving the designation. The commissioner's decision 
27.9 	to uphold or deny an appeal is final.
27.10 	(e) School performance report cards are nonpublic data under section  13.02, 
27.11 	subdivision 9, until not later than ten days after the appeal procedure described in 
27.12 	paragraph (d) concludes. The department shall annually post school performance report 
27.13 	cards to its public Web site no later than September 1. 

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

27.15 	Sec. 7. Minnesota Statutes 2004, section 121A.035, is amended to read:
27.16 	121A.035 CRISIS MANAGEMENT POLICY.
27.17 		Subdivision 1.Model policy. By December 1, 1999,The commissioner shall 
27.18 	maintain and make available to school boards and charter schools a model crisis 
27.19 	management policy that includes, among other items, school lock-down and tornado drills, 
27.20 	consistent with subdivision 2, and school fire drills under section 299F.30.
27.21 		Subd. 2.School district and charter school policy. By July 1, 2000, A school 
27.22 	board and a charter school must adopt a district crisis management policy to address 
27.23 	potential violent crisis situations in the district or charter school. The policy must be 
27.24 	developed in consultationcooperatively with administrators, teachers, employees, 
27.25 	students, parents, community members, law enforcement agencies, other emergency 
27.26 	management officials, county attorney offices, social service agencies, emergency medical 
27.27 	responders, and any other appropriate individuals or organizations. The policy must 
27.28 	include at least five school lock-down drills, five school fire drills consistent with section 
27.29 	299F.30, and one tornado drill. 

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

27.32 	Sec. 8. [121A.037] SCHOOL SAFETY DRILLS.
28.1 	Private schools and educational institutions not subject to section 121A.035 must 
28.2 	have at least five school lock-down drills, five school fire drills consistent with section 
28.3 	299F.30, and one tornado drill.

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

28.5 	Sec. 9. Minnesota Statutes 2005 Supplement, section 121A.53, subdivision 1, is 
28.6 	amended to read:
28.7 		Subdivision 1.Exclusions and expulsions. The school board must report through 
28.8 	the department electronic reporting system each exclusion or,  expulsion, or other removal 
28.9 	for greater than 15 consecutive days taken in lieu of an exclusion or expulsion  within 30 
28.10 	days of the effective date of the action to the commissioner of education. This report must 
28.11 	include a statement of alternative educational services given the pupil and the reason for, 
28.12 	the effective date, and the duration of the exclusion or expulsion. The report must also 
28.13 	include the student's age, grade, gender, race, and special education status.

28.14 	Sec. 10. Minnesota Statutes 2004, section 122A.18, subdivision 2, is amended to read:
28.15 		Subd. 2.Teacher and support personnel qualifications. (a) The Board of 
28.16 	Teaching must issue licenses under its jurisdiction to persons the board finds to be 
28.17 	qualified and competent for their respective positions.
28.18 	(b) The board must require a person to successfully complete an examination of 
28.19 	skills in reading, writing, and mathematics before being granted an initial teaching license 
28.20 	to provide direct instruction to pupils in prekindergarten, elementary, secondary, or special 
28.21 	education programs. The board must require colleges and universities offering a board 
28.22 	approved teacher preparation program to provide remedial assistance that includes a 
28.23 	formal diagnostic component to persons enrolled in their institution who did not achieve a 
28.24 	qualifying score on the skills examination, including those for whom English is a second 
28.25 	language. The colleges and universities must provide assistance in the specific academic 
28.26 	areas of deficiency in which the person did not achieve a qualifying score. School 
28.27 	districts must provide similar, appropriate, and timely remedial assistance that includes a 
28.28 	formal diagnostic component and mentoring to those persons employed by the district 
28.29 	who completed their teacher education program outside the state of Minnesota, received 
28.30 	a one-year license to teach in Minnesota and did not achieve a qualifying score on the 
28.31 	skills examination, including those persons for whom English is a second language. The 
28.32 	Board of Teaching shall report annually to the education committees of the legislature 
28.33 	on the total number of teacher candidates during the most recent school year taking the 
28.34 	skills examination, the number who achieve a qualifying score on the examination, the 
29.1 	number who do not achieve a qualifying score on the examination, the distribution of all 
29.2 	candidates' scores, the number of candidates who have taken the examination at least once 
29.3 	before, and the number of candidates who have taken the examination at least once before 
29.4 	and achieve a qualifying score.
29.5 	(c) A person who has completed an approved teacher preparation program and 
29.6 	obtained a one-year license to teach, but has not successfully completed the skills 
29.7 	examination, may renew the one-year license for two additional one-year periods. Each 
29.8 	renewal of the one-year license is contingent upon the licensee:
29.9 	(1) providing evidence of participating in an approved remedial assistance program 
29.10 	provided by a school district or postsecondary institution that includes a formal diagnostic 
29.11 	component in the specific areas in which the licensee did not obtain qualifying scores; and
29.12 	(2) attempting to successfully complete the skills examination during the period 
29.13 	of each one-year license.
29.14 	(d) The Board of Teaching must grant continuing licenses only to those persons who 
29.15 	have met board criteria for granting a continuing license, which includes successfully 
29.16 	completing the skills examination in reading, writing, and mathematics.
29.17 	(e) All colleges and universities approved by the board of teaching to prepare 
29.18 	persons for teacher licensure must include in their teacher preparation programs a common 
29.19 	core of teaching knowledge and skills to be acquired by all persons recommended 
29.20 	for teacher licensure. This common core shall meet the standards developed by the 
29.21 	interstate new teacher assessment and support consortium in its 1992 "model standards 
29.22 	for beginning teacher licensing and development.," and must include technology design 
29.23 	and information literacy standards that are consistent with recommendations from the 
29.24 	department's educator licensing and teacher quality division. The board must develop 
29.25 	and implement a system for reviewing on a seven-year cycle all standards of effective 
29.26 	practice for teachers beginning in the 2007-2008 school year. Amendments to standards 
29.27 	adopted under this paragraph are covered by chapter 14. The board of teaching shall report 
29.28 	annually to the education committees of the legislature on the performance of teacher 
29.29 	candidates on common core assessments of knowledge and skills under this paragraph 
29.30 	during the most recent school year.

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

29.32 	Sec. 11. Minnesota Statutes 2004, section 122A.40, subdivision 13, is amended to read:
29.33 		Subd. 13.Immediate discharge. (a) Except as otherwise provided in paragraph 
29.34 	(b), a board may discharge a continuing-contract teacher, effective immediately, upon any 
29.35 	of the following grounds:
30.1 	(1) immoral conduct, insubordination, or conviction of a felony;
30.2 	(2) conduct unbecoming a teacher which requires the immediate removal of the 
30.3 	teacher from classroom or other duties;
30.4 	(3) failure without justifiable cause to teach without first securing the written release 
30.5 	of the school board;
30.6 	(4) gross inefficiency which the teacher has failed to correct after reasonable written 
30.7 	notice;
30.8 	(5) willful neglect of duty; or
30.9 	(6) continuing physical or mental disability subsequent to a 12 months leave of 
30.10 	absence and inability to qualify for reinstatement in accordance with subdivision 12.
30.11 	For purposes of this paragraph, conduct unbecoming a teacher includes an unfair 
30.12 	discriminatory practice described in section  363A.13. 
30.13 	Prior to discharging a teacher under this paragraph, the board must notify the 
30.14 	teacher in writing and state its ground for the proposed discharge in reasonable detail. 
30.15 	Within ten days after receipt of this notification the teacher may make a written request 
30.16 	for a hearing before the board and it shall be granted before final action is taken. The 
30.17 	board may, however, suspend a teacher with pay pending the conclusion of such the
30.18 	hearing and determination of the issues raised in the hearing after charges have been 
30.19 	filed which constitute ground for discharge. If a teacher has been charged with a felony 
30.20 	and the underlying conduct that is the subject of the felony charge is a ground for a 
30.21 	proposed immediate discharge, the suspension pending the conclusion of the hearing and 
30.22 	determination of the issues may be without pay. If a hearing under this paragraph is held, 
30.23 	the board must reimburse the teacher for any salary or compensation withheld if the 
30.24 	final decision of the board or the arbitrator does not result in a penalty on or suspension, 
30.25 	termination, or discharge of the teacher.
30.26 	(b) A board must discharge a continuing-contract teacher, effective immediately, 
30.27 	upon receipt of notice under section  122A.20, subdivision 1, paragraph (b), that the 
30.28 	teacher's license has been revoked due to a conviction for child abuse or sexual abuse. 

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

30.30 	Sec. 12. Minnesota Statutes 2005 Supplement, section 122A.628, is amended to read:
30.31 	122A.628 SCHOOLS MENTORING SCHOOLS REGIONAL SITES.
30.32 		Subdivision 1.Program. The commissioner of education shall select up to four 
30.33 	school districts, or partnerships of school districts, for the purpose of assisting other school 
30.34 	districts in the region with the development of thorough and effective teacher mentoring 
31.1 	programs. The commissioner shall use geographic balance and proven teacher induction 
31.2 	programs as criteria when selecting the sites. One site must include the Brainerd teacher 
31.3 	support system, which has been cited by the Minnesota Board of Teaching as a model 
31.4 	program and was one of only six programs in the nation to be recognized for the 2004 
31.5 	NEA-Saturn/UAW partnership award. The sites shall be known as schools mentoring 
31.6 	schools regional sites.
31.7 	The sites shall provide high quality mentoring assistance programs and services to 
31.8 	other nearby school districts for the development of effective systems of support for new 
31.9 	teachers. The sites shall offer coaching/mentor training, in-class observation training, and 
31.10 	train-the-teacher train-the-trainer opportunities for teams of participating teachers. The 
31.11 	sites shall use their recognized experience and methods to equip schools to work with their 
31.12 	own new and beginning teachers. The commissioner shall review and report annually to 
31.13 	the legislature on the operation of each training center.
31.14 		Subd. 2.Revenue. A school district that is selected to participate in the schools 
31.15 	mentoring schools program under this section is eligible for a schools mentoring schools 
31.16 	grant or may utilize its professional compensation revenue under section 122A.4142, 
31.17 	subdivision 4, to pay regional training sites for staff development and training services.

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

31.19 	Sec. 13. [123A.47] ELECTION TO DETACH LAND FOR A NEW SCHOOL 
31.20 	DISTRICT.
31.21 		Subdivision 1.Detachment ballot question; school board general election. The 
31.22 	school board of an independent school district may, (1) on its own motion and consistent 
31.23 	with the hearing requirements under section 123A.46, subdivision 6, or (2) upon a petition 
31.24 	signed by at least 50 electors of the district or ten percent of the votes cast in the most 
31.25 	recent school board general election, whichever number is larger, and consistent with 
31.26 	the requirements for the content of a petition and the process for identifying eligible 
31.27 	voters under section 123A.46, subdivision 4, place on the ballot at the next school district 
31.28 	general election the following question: whether, as of the date when a new board can 
31.29 	be elected and qualified under subdivision 2, to detach from the school district a clearly 
31.30 	and accurately described land area located within the boundaries of the district and, 
31.31 	consequently, to classify that detached area as a new independent school district for which 
31.32 	the education commissioner must assign an identification number. The school board 
31.33 	must hold a timely formal hearing on the question before the next school district general 
31.34 	election. If the voters approve detaching the described land area and, consequently, 
31.35 	classifying that detached area as a new independent school district for which the education 
32.1 	commissioner must assign an identification number, then the detachment must be 
32.2 	accomplished according to this section.
32.3 		Subd. 2.School board elections. (a) The county auditor of the county that contains 
32.4 	the greatest land area for the newly constituted school district and the county auditor of 
32.5 	the county that contains the greatest land area for the newly reconstituted school district 
32.6 	must determine a date, not less than 30 nor more than 60 days after the voters approve the 
32.7 	detachment ballot question under subdivision 1, to hold a special election in the district 
32.8 	for the purpose of electing a board of six members for terms of four years and until 
32.9 	successors are elected and qualified under the applicable provisions in chapter 205A.  The 
32.10 	provisions of section 123A.48, subdivision 20, paragraphs (a) to (e), governing school 
32.11 	board elections in consolidating districts shall apply to the newly constituted and newly 
32.12 	reconstituted districts under this section.
32.13 	(b) Notwithstanding any law to the contrary, the terms of the board members of the 
32.14 	school district from which land is being detached continue until the first school board 
32.15 	members are elected and qualified under this subdivision.
32.16 	(c) Notwithstanding any law to the contrary, an individual may serve on the school 
32.17 	board of the school district from which land is being detached and subsequently, if a 
32.18 	resident of the district, on a school board elected and qualified under this subdivision.
32.19 		Subd. 3.Direction to commissioner after voter approval. If the voters approve 
32.20 	the ballot question, the education commissioner shall classify the detached area as a new 
32.21 	independent school district and also classify the area that remains after the detachment as 
32.22 	a new independent school district, assign identification numbers to both new districts, and 
32.23 	modify the records and any plats, petitions, and proceedings involving the affected school 
32.24 	districts to conform with the detachment under this section.
32.25 		Subd. 4.Tax liability for existing bonded debt. All taxable property in the area 
32.26 	detached under subdivision 1 remains obligated for any bonded debt of the school district 
32.27 	from which the property was detached and to which that detached property was subject 
32.28 	before the date of the detachment.  In addition, all taxable property in a newly classified 
32.29 	district is taxable for payment of school district obligations authorized on or after the date 
32.30 	of the detachment by the school board or the voters of that school district.
32.31 		Subd. 5.Current assets and liabilities; distribution of assets; real property. (a) 
32.32 	If the voters approve detachment under subdivision 1, and upon issuance of the report of 
32.33 	the school district canvassing board, the commissioner shall issue an order for dividing 
32.34 	and distributing the current assets and liabilities, real and personal, and the legally valid 
32.35 	and enforceable claims and contractual obligations of the school district from which the 
32.36 	property was detached, so that the two newly classified districts can independently operate.
33.1 	(b) The commissioner's order under paragraph (a) must transfer the real property 
33.2 	interests from the school district subject to the detachment to the two newly classified 
33.3 	districts.  The commissioner must determine the distribution of and the amount, if any, 
33.4 	paid for the real property.  The commissioner's order may impose in favor of one of the 
33.5 	two newly classified districts a specified dollar amount as a claim against the other 
33.6 	newly classified district receiving real property interests under the order.  The claim must 
33.7 	be paid and enforced according to the law governing payment of judgments against a 
33.8 	school district.
33.9 		Subd. 6.Licensed and nonlicensed employees. (a) The obligations of both newly 
33.10 	classified districts to licensed employees are governed by section 123A.75.
33.11 	(b) The nonlicensed employees of the school district from which the property was 
33.12 	detached under subdivision 1 may apply to remain in the newly reconstituted district or 
33.13 	may apply to move to the newly constituted district.  The commissioner shall assign the 
33.14 	nonlicensed employees to unfilled positions in both districts in order of seniority.  All 
33.15 	rights of and obligations to nonlicensed employees continue in the same manner as before 
33.16 	the effective date of the detachment under subdivision 1.

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

33.18 	Sec. 14. [123B.022] PROHIBITING SCHOOL EMPLOYEES FROM USING 
33.19 	PUBLIC RESOURCES FOR ADVOCACY; ENDORSING TIMELY AND 
33.20 	CURRENT FACTUAL INFORMATION.
33.21 	(a) A school board must adopt and implement a districtwide policy that prohibits 
33.22 	district employees from using district funds or other publicly funded district resources, 
33.23 	including time, materials, equipment, facilities, and communication technologies, among 
33.24 	other resources, to advocate for electing or defeating a candidate, passing or defeating 
33.25 	a ballot question, or passing or defeating pending legislation.  The policy must apply 
33.26 	when the employee performs the duties assigned to the employee under the employee's 
33.27 	employment contract with the district.  The policy must not apply when an employee 
33.28 	disseminates factual information consistent with the employee's contractual duties or 
33.29 	testifies at a public hearing. The policy also must not prohibit school administrators from 
33.30 	communicating with elected officials. 
33.31 	(b) The school board must provide the district's electorate with timely factual 
33.32 	information about a pending ballot question. 

33.33 	EFFECTIVE DATE. This section is effective January 1, 2006.

34.1 	Sec. 15. Minnesota Statutes 2004, section 123B.749, is amended to read:
34.2 	123B.749 STRUCTURALLY BALANCED SCHOOL DISTRICT BUDGETS.
34.3 		Subdivision 1.Board resolution. (a) Prior to Before approving a collective 
34.4 	bargaining agreement that does not result from an interest arbitration decision, a school 
34.5 	board must determine by board resolution that the proposed agreement will not cause 
34.6 	structural imbalance in the district's budget during the agreement period of the agreement.
34.7 	(b) A school board may only determine that an agreement will not cause structural 
34.8 	imbalance only if expenditures will not exceed available funds, taking into account:
34.9 	(1) current state aid formulas; and
34.10 	(2) reasonable and comprehensive projections of ongoing revenues and expenditures 
34.11 	for the period of the agreement. It is expected that The board must not use onetime 
34.12 	revenue may not be used for ongoing expenditures. Any amount in excess of the board's 
34.13 	resolution for the district's general fund balance is not onetime revenue under this section. 
34.14 	The school board must make available with the resolution a summary of the projections 
34.15 	and calculations supporting the determination. The projections and calculations must 
34.16 	include state aid formulas, pupil units, and employee costs, including  that reflect the terms 
34.17 	of all applicable labor agreements, including the agreement under consideration, its fringe 
34.18 	benefits, severance pay, and staff changes.
34.19 	(c) In addition to the determination required in under paragraph (a), the school board 
34.20 	must project revenues, expenditures, and fund balances for one year two years following 
34.21 	the period of the agreement. The projections must include the information categories 
34.22 	of information described in under paragraph (b), be reasonable and comprehensive, and 
34.23 	reference current state aid formulas.
34.24 	(d) The board must make available all projections and calculations required by 
34.25 	this section must be made available and estimated district employee terminations to the 
34.26 	public prior to andbefore, at, and after the meeting where the board adopts the resolution,
34.27 	is adopted in a manner consistent with state law on public notice and access to public data.
34.28 	(e) In an interest arbitration, the district must submit, and the exclusive bargaining 
34.29 	representative may submit, proposed determinations with supporting projections and 
34.30 	calculations consistent with paragraph (b) of the effect of the potential decision on the 
34.31 	structural balance of the district's budget. The arbitrator must consider the potential effect 
34.32 	of a decision on the structural balance of the district's budget for the term of the agreement. 
34.33 	The arbitrator's decision must describe the effect of the decision on the structural balance 
34.34 	of the district's budget in a manner consistent with paragraph (b). The arbitrator's decision 
34.35 	also must also show the effect of the decision on the school budget for one year following 
34.36 	the term of the contract at issue. Within 30 days of receipt of the decision or when the 
35.1 	board receives or acts on the decision, whichever is earlier, the school board must by 
35.2 	resolution determine the effect of the decision on the structural balance of its budget for 
35.3 	the term of the agreement, consistent with paragraph (b).
35.4 	(f) The board must submit a copy of the resolution with the supporting projections 
35.5 	and calculations must be submitted to the commissioner of education with the uniform 
35.6 	collective bargaining agreement settlement document within 30 days of adoption of
35.7 	adopting the resolution. The commissioner must develop a model form for use by districts 
35.8 	to use in reporting projections and calculations. The commissioner must not accept any 
35.9 	reports that do not comply with this section. The commissioner must make all resolutions, 
35.10 	projections, and calculations available to the public.
35.11 	(g) Compliance with this section by itself is not an unfair labor practice under 
35.12 	section  179A.13, subdivision 2. 
35.13 		Subd. 2.Penalty payment. Annually by August 15, the school board must submit a 
35.14 	report to the commissioner summarizing the cumulative effect of all collective bargaining 
35.15 	agreements in the previous fiscal year. A school board that fails to submit a timely 
35.16 	year-end report to the commissioner must transmit to the department within 45 business 
35.17 	days of when the report was due a penalty payment from its general fund equal to $1 times 
35.18 	the number of adjusted pupil units for the district during that fiscal year. The board, before 
35.19 	transmitting payment, must formally approve the payment at a regularly scheduled board 
35.20 	meeting and the board must include the matter of payment on its regular agenda and must 
35.21 	not include the matter of payment on its consent agenda for that meeting.

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

35.23 	Sec. 16. Minnesota Statutes 2005 Supplement, section 124D.095, subdivision 4, 
35.24 	is amended to read:
35.25 		Subd. 4.Online learning parameters. (a) An online learning student must receive 
35.26 	academic credit for completing the requirements of an online learning course or program. 
35.27 	Secondary credits granted to an online learning student must be counted toward the 
35.28 	graduation and credit requirements of the enrolling district. The enrolling district must 
35.29 	apply the same graduation requirements to all students, including online learning students, 
35.30 	and must continue to provide nonacademic services to online learning students. If a 
35.31 	student completes an online learning course or program that meets or exceeds a graduation 
35.32 	standard or grade progression requirement at the enrolling district, that standard or 
35.33 	requirement is met. The enrolling district must use the same criteria for accepting online 
35.34 	learning credits or courses as it does for accepting credits or courses for transfer students 
35.35 	under section 124D.03, subdivision 9. The enrolling district may reduce the teacher 
36.1 	contact time of an online learning student in proportion to the number of online learning 
36.2 	courses the student takes from an online learning provider that is not the enrolling district.
36.3 	(b) An online learning student may:
36.4 	(1) enroll during a single school year in a maximum of 12 semester-long courses or 
36.5 	their equivalent delivered by an online learning provider or the enrolling district;
36.6 	(2) complete course work at a grade level that is different from the student's current 
36.7 	grade level; and
36.8 	(3) enroll in additional courses with the online learning provider under a separate 
36.9 	agreement that includes terms for payment of any tuition or course fees.
36.10 	(c) A student with a disability may enroll in an online learning course or program 
36.11 	if the student's IEP team determines that online learning is appropriate education for 
36.12 	the student.
36.13 	(d)(c) An online learning student has the same access to the computer hardware 
36.14 	and education software available in a school as all other students in the enrolling district. 
36.15 	An online learning provider must assist an online learning student whose family qualifies 
36.16 	for the education tax credit under section 290.0674 to acquire computer hardware and 
36.17 	educational software for online learning purposes.
36.18 	(e)(d) An enrolling district may offer online learning to its enrolled students. 
36.19 	Such online learning does not generate online learning funds under this section. An 
36.20 	enrolling district that offers online learning only to its enrolled students is not subject 
36.21 	to the reporting requirements or review criteria under subdivision 7. A teacher with a 
36.22 	Minnesota license must assemble and deliver instruction to enrolled students receiving 
36.23 	online learning from an enrolling district. The delivery of instruction occurs when the 
36.24 	student interacts with the computer or the teacher and receives ongoing assistance and 
36.25 	assessment of learning. The instruction may include curriculum developed by persons 
36.26 	other than a teacher with a Minnesota license.
36.27 	(f)(e) An online learning provider that is not the enrolling district is subject to 
36.28 	the reporting requirements and review criteria under subdivision 7. A teacher with a 
36.29 	Minnesota license must assemble and deliver instruction to online learning students. The 
36.30 	delivery of instruction occurs when the student interacts with the computer or the teacher 
36.31 	and receives ongoing assistance and assessment of learning. The instruction may include 
36.32 	curriculum developed by persons other than a teacher with a Minnesota license. Unless 
36.33 	the commissioner grants a waiver, a teacher providing online learning instruction must not 
36.34 	instruct more than 40 students in any one online learning course or program.

36.35 	Sec. 17. Minnesota Statutes 2004, section 124D.10, subdivision 3, is amended to read:
37.1 		 Subd. 3.Sponsor.  (a) A school board; intermediate school district school board; 
37.2 	education district organized under sections 123A.15 to 123A.19; charitable organization 
37.3 	under section 501(c)(3) of the Internal Revenue Code of 1986 that is a member of the 
37.4 	Minnesota Council of Nonprofits or the Minnesota Council on Foundations, registered 
37.5 	with the attorney general's office, and reports an end-of-year fund balance of at least 
37.6 	$2,000,000; Minnesota private college that grants two- or four-year degrees and is 
37.7 	registered with the Higher Education Services Office under chapter 136A; community 
37.8 	college, state university, or technical college, governed by the Board of Trustees of the 
37.9 	Minnesota State Colleges and Universities; or the University of Minnesota may sponsor 
37.10 	one or more charter schools.
37.11 	 (b) A nonprofit corporation subject to chapter 317A, described in section 317A.905, 
37.12 	and exempt from federal income tax under section 501(c)(6) of the Internal Revenue Code 
37.13 	of 1986, may sponsor one or more charter schools if the charter school has operated for 
37.14 	at least three years under a different sponsor and if the nonprofit corporation has existed 
37.15 	for at least 25 years.
37.16 	 (c) The commissioner of education may approve up to five charitable organizations 
37.17 	under section 501(c)(3) of the Internal Revenue Code of 1986 that sponsor charter schools 
37.18 	as their principle charitable purpose.  Eligible charitable organizations interested in being 
37.19 	approved as a sponsor under this paragraph must submit a proposal to the commissioner 
37.20 	that includes:
37.21 	 (1) the articles, bylaws, and initial membership of the charitable organization's 
37.22 	board of directors;
37.23 	 (2) financial information consistent with section 309.53, subdivision 3;
37.24 	 (3) a description of how the charitable organization plans to realize its principle 
37.25 	charitable purpose; and 
37.26 	 (4) other information requested by the commissioner.
37.27 	 A charitable organization that is approved as a sponsor under this paragraph annually 
37.28 	must report to the commissioner in the form and manner the commissioner determines. 
37.29 	The report must describe the charter schools authorized by the charitable organization, 
37.30 	the effectiveness of those charter schools in promoting student achievement, and the 
37.31 	governance structure of those charter schools, and also must include other information 
37.32 	requested by the commissioner.  An approved charitable organization may sponsor one 
37.33 	or more charter schools.  The commissioner may withdraw the approval of a charitable 
37.34 	organization to sponsor a charter school under this paragraph if the commissioner 
37.35 	determines that the charitable organization fails to meet generally accepted standards of 
37.36 	fiscal management, violates the law, or shows other good cause.  The commissioner's 
38.1 	determination is final.  When the commissioner withdraws the approval of a charitable 
38.2 	organization to sponsor a charter school, the commissioner may approve the decision of 
38.3 	a different eligible sponsor to authorize the charter school or may apply subdivision 24 
38.4 	governing student enrollment when a charter school contract is not renewed or terminated.

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

38.6 	Sec. 18. Minnesota Statutes 2005 Supplement, section 124D.10, subdivision 6, is 
38.7 	amended to read:
38.8 		Subd. 6.Contract. The sponsor's authorization for a charter school must be in the 
38.9 	form of a written contract signed by the sponsor and the board of directors of the charter 
38.10 	school. The contract must be completed within 90 days of the commissioner's approval 
38.11 	of the sponsor's proposed authorization. The contract for a charter school must be in 
38.12 	writing and contain at least the following:
38.13 	(1) a description of a program that carries out one or more of the purposes in 
38.14 	subdivision 1;
38.15 	(2) specific outcomes pupils are to achieve under subdivision 10;
38.16 	(3) admission policies and procedures;
38.17 	(4) management and administration of the school;
38.18 	(5) requirements and procedures for program and financial audits;
38.19 	(6) how the school will comply with subdivisions 8, 13, 16, and 23;
38.20 	(7) assumption of liability by the charter school;
38.21 	(8) types and amounts of insurance coverage to be obtained by the charter school;
38.22 	(9) the term of the contract, which may be up to three years for initial contracts 
38.23 	and up to five years for renewed contracts;
38.24 	(10) if the board of directors or the operators of the charter school provide special 
38.25 	instruction and services for children with a disability under sections 125A.03 to 125A.24, 
38.26 	and 125A.65, a description of the financial parameters within which the charter school will 
38.27 	operate to provide the special instruction and services to children with a disability; and
38.28 	(11) the process and criteria the sponsor intends to use to monitor and evaluate the 
38.29 	fiscal and student performance of the charter school, consistent with subdivision 15.

38.30 	Sec. 19. Minnesota Statutes 2004, section 124D.10, subdivision 16, is amended to read:
38.31 		Subd. 16.Transportation. (a) By July 1 of each year, a charter schoolA charter 
38.32 	school by March 1 of each fiscal year after its first fiscal year of operation and a charter 
38.33 	school by July 1 of its first fiscal year of operation must notify the district in which the 
38.34 	school is located and the Department of Education if it will provide transportation for 
39.1 	pupils enrolled in the schoolits own transportation or use the transportation services of 
39.2 	the district in which it is located  for the next fiscal year.
39.3 	(b) If a charter school elects to provide transportation for pupils, the transportation 
39.4 	must be provided by the charter school within the district in which the charter school is 
39.5 	located. The state must pay transportation aid to the charter school according to section  
39.6 	124D.11, subdivision 2. 
39.7 	For pupils who reside outside the district in which the charter school is located, the 
39.8 	charter school is not required to provide or pay for transportation between the pupil's 
39.9 	residence and the border of the district in which the charter school is located. A parent 
39.10 	may be reimbursed by the charter school for costs of transportation from the pupil's 
39.11 	residence to the border of the district in which the charter school is located if the pupil is 
39.12 	from a family whose income is at or below the poverty level, as determined by the federal 
39.13 	government. The reimbursement may not exceed the pupil's actual cost of transportation 
39.14 	or 15 cents per mile traveled, whichever is less. Reimbursement may not be paid for 
39.15 	more than 250 miles per week.
39.16 	At the time a pupil enrolls in a charter school, the charter school must provide the 
39.17 	parent or guardian with information regarding the transportation.
39.18 	(c) If a charter school does not elect to provide transportation, transportation for 
39.19 	pupils enrolled at the school must be provided by the district in which the school is 
39.20 	located, according to sections  123B.88, subdivision 6, and  124D.03, subdivision 8, for a 
39.21 	pupil residing in the same district in which the charter school is located. Transportation 
39.22 	may be provided by the district in which the school is located, according to sections  
39.23 	123B.88, subdivision 6, and  124D.03, subdivision 8, for a pupil residing in a different 
39.24 	district. If the district provides the transportation, the scheduling of routes, manner and 
39.25 	method of transportation, control and discipline of the pupils, and any other matter relating 
39.26 	to the transportation of pupils under this paragraph shall be within the sole discretion, 
39.27 	control, and management of the district. 

39.28 	Sec. 20. Minnesota Statutes 2004, section 124D.11, subdivision 9, is amended to read:
39.29 		Subd. 9.Payment of aids to charter schools. (a) Notwithstanding section  127A.45, 
39.30 	subdivision 3, aid payments for the current fiscal year to a charter school not in its first 
39.31 	year of operation shall be of an equal amount on each of the 23 payment dates. A charter 
39.32 	school in its first year of operation shall receive, on its first payment date, ten percent of its 
39.33 	cumulative amount guaranteed for the year and 22 payments of an equal amount thereafter 
39.34 	the sum of which shall be 90 percent of equal the current year aid payment percentage 
39.35 	multiplied by  the cumulative amount guaranteed. 
40.1 	(b) Notwithstanding paragraph (a), for a charter school ceasing operation prior to the 
40.2 	end of a school year, 80 percent of the current year aid payment percentage multiplied by 
40.3 	 the amount due for the school year may be paid to the school after audit of prior fiscal year 
40.4 	and current fiscal year pupil counts. For a charter school ceasing operations prior to, or 
40.5 	at the end of a school year, notwithstanding section 127A.45, subdivision 3, preliminary 
40.6 	final payments may be made after audit of pupil counts, monitoring of special education 
40.7 	expenditures, and documentation of lease expenditures for the final year of operation. 
40.8 	Final payment may be made upon receipt of audited financial statements under section 
40.9 	123B.77, subdivision 3.
40.10 	(c) Notwithstanding section  127A.45, subdivision 3, and paragraph (a), 80 percent 
40.11 	of the start-up cost aid under subdivision 8 shall be paid within 45 days after the first day 
40.12 	of student attendance for that school year. 
40.13 	(d) In order to receive state aid payments under this subdivision, a charter school in 
40.14 	its first three years of operation must submit a school calendar in the form and manner 
40.15 	requested by the department and a quarterly report to the Department of Education. The 
40.16 	report must list each student by grade, show the student's start and end dates, if any, 
40.17 	with the charter school, and for any student participating in a learning year program, 
40.18 	the report must list the hours and times of learning year activities. The report must be 
40.19 	submitted not more than two weeks after the end of the calendar quarter to the department. 
40.20 	The department must develop a Web-based reporting form for charter schools to use 
40.21 	when submitting enrollment reports. A charter school in its fourth and subsequent year of 
40.22 	operation must submit a school calendar and enrollment information to the department in 
40.23 	the form and manner requested by the department.
40.24 	(e) Notwithstanding sections 317A.701 to 317A.791, upon closure of a charter 
40.25 	school and satisfaction of creditors, cash and investment balances remaining shall be 
40.26 	returned to the state.

40.27 	Sec. 21. Minnesota Statutes 2004, section 124D.61, is amended to read:
40.28 	124D.61 GENERAL REQUIREMENTS FOR PROGRAMS.
40.29 	A district which receives aid pursuant to section  124D.65 must comply with that 
40.30 	enrolls one or more children of limited English proficiency must implement an educational 
40.31 	program that includes at a minimum the following program requirements: 
40.32 	(1) identification and reclassification criteria for children of limited English 
40.33 	proficiency and program entrance and exit criteria for children with limited English 
40.34 	proficiency must be documented by the district, applied uniformly to children of limited 
40.35 	English proficiency, and made available to parents and other stakeholders upon request;
41.1 	(2) a written plan of services that describes programming by English proficiency 
41.2 	level made available to parents upon request. The plan must articulate the amount and 
41.3 	scope of service offered to children of limited English proficiency through an educational 
41.4 	program for children of limited English proficiency;
41.5 	(3) professional development opportunities for ESL, bilingual education, 
41.6 	mainstream, and all staff working with children of limited English proficiency which are: 
41.7 	(i) coordinated with the district's professional development activities; (ii) related to the 
41.8 	needs of children of limited English proficiency; and (iii) ongoing;
41.9 	(4) to the extent possible, the district must avoid isolating children of limited English 
41.10 	proficiency for a substantial part of the school day; and
41.11 	(2) (5) in predominantly nonverbal subjects, such as art, music, and physical 
41.12 	education, permit pupils of limited English proficiency shall be permitted to participate 
41.13 	fully and on an equal basis with their contemporaries in public school classes provided 
41.14 	for these subjects. To the extent possible, the district must assure to pupils enrolled in a 
41.15 	program for limited English proficient students an equal and meaningful opportunity to 
41.16 	participate fully with other pupils in all extracurricular activities.

41.17 	Sec. 22. Minnesota Statutes 2004, section 124D.86, subdivision 3, is amended to read:
41.18 		Subd. 3.Integration revenue. Integration revenue equals the following amounts:
41.19 	(1) for Independent School District No. 709, Duluth, $206 times the adjusted pupil 
41.20 	units for the school year;
41.21 	(2) for Independent School District No. 625, St. Paul, $445 times the adjusted 
41.22 	pupil units for the school year;
41.23 	(3) for Special School District No. 1, Minneapolis, the sum of $445 times the 
41.24 	adjusted pupil units for the school year and an additional $35 times the adjusted pupil units 
41.25 	for the school year that is provided entirely through a local levy;
41.26 	(4) for a district not listed in clause (1), (2), or (3), that must implement a plan 
41.27 	under Minnesota Rules, parts 3535.0100 to 3535.0180, where the district's enrollment of 
41.28 	protected students, as defined under Minnesota Rules, part 3535.0110, exceeds 15 percent, 
41.29 	the lesser of (i) the actual cost of implementing the plan during the fiscal year minus the aid 
41.30 	received under subdivision 6, or (ii) $129 times the adjusted pupil units for the school year;
41.31 	(5) for a district not listed in clause (1), (2), (3), or (4), that is required to implement 
41.32 	a plan according to the requirements of Minnesota Rules, parts 3535.0100 to 3535.0180, 
41.33 	the lesser of
41.34 	(i) the actual cost of implementing the plan during the fiscal year minus the aid 
41.35 	received under subdivision 6, or
42.1 	(ii) $92 times the adjusted pupil units for the school year; or
42.2 	(6) for a school district not eligible under clauses (1) to (5) that has a protected 
42.3 	student enrollment of  more than 13 percent that files a plan under Minnesota Rules, part 
42.4 	3535.0110, $92 times the adjusted pupil units for the school year.
42.5 	Any money received by districts in clauses (1) to (3) which exceeds the amount 
42.6 	received in fiscal year 2000 shall be subject to the budget requirements in subdivision 
42.7 	1a; and
42.8 	(6) (7) for a member district of a multidistrict integration collaborative that files a 
42.9 	plan with the commissioner, but is not contiguous to a racially isolated district, integration 
42.10 	revenue equals the amount defined in clause (5).

42.11 	EFFECTIVE DATE. This section is effective for revenue for fiscal year 2008.

42.12 	Sec. 23. [124D.935] HIGH SCHOOL REDESIGN GRANTS.
42.13 		Subdivision 1.Establishment; eligibility. A ten-year grant program is established 
42.14 	to improve student achievement in, improve teaching and learning of, and provide 
42.15 	expanded access to science, technology, engineering, and mathematics in a high school 
42.16 	through innovative strategies that better prepare students to succeed at postsecondary 
42.17 	education or complex work.  School districts, charter schools, intermediate districts, 
42.18 	groups of districts that cooperate for a particular purpose, and other public educational 
42.19 	institutions interested in participating in this grant program must:
42.20 	(1) design new or improve and adapt existing courses, programs, or a series of 
42.21 	aligned learning opportunities in science, technology, engineering, and mathematics to 
42.22 	incorporate algebra I in grade 8 and algebra II in high school and to integrate algebra II 
42.23 	into career and technical education programs where appropriate;
42.24 	(2) use applied learning strategies to improve the quality of and access to science, 
42.25 	technology, engineering, and mathematics courses, curricula, and laboratories for all 
42.26 	students, with strategies to aggressively increase the number of low-income and other 
42.27 	educationally at-risk students enrolling in these courses;
42.28 	(3) improve science, technology, engineering, and mathematics instruction for 
42.29 	students in underserved rural or urban areas or economically disadvantaged areas and for 
42.30 	other students who are educationally at risk;
42.31 	(4) develop innovative ways to integrate technology into teaching and learning using 
42.32 	modern computers, networking, high quality educational software, multimedia across 
42.33 	curriculum, and affordable Internet connections;
42.34 	(5) advance the use of new technology, assistive technology, and media and materials 
42.35 	effective in educating youth with disabilities;
43.1 	(6) improve the content, interdisciplinary, and pedagogical knowledge of teachers, 
43.2 	administrators, and other educators who play a significant role in providing students with 
43.3 	challenging science, technology, engineering, and mathematics education, and focus on 
43.4 	teacher professional development;
43.5 	(7) use the ACT explore and plan system in grades 8 and 10 or other appropriate 
43.6 	education and career planning resources to identify the academic strengths and remedial 
43.7 	needs of individual students and provide individual students with education and career 
43.8 	planning information and counseling sufficient to select an appropriate planned high 
43.9 	school course sequence and make a successful transition to postsecondary education 
43.10 	or advanced work;
43.11 	(8) enable teachers to individualize student instruction and allow students to 
43.12 	experiment, acquire skills, and apply content knowledge in science, technology, 
43.13 	engineering, and mathematics; 
43.14 	(9) sustain educational improvements in science, technology, engineering, and 
43.15 	mathematics by providing expert and peer advice and identifying, documenting, and 
43.16 	disseminating best practices and lessons to teachers and administrators statewide; and
43.17 	(10) develop partnerships with postsecondary institutions, business organizations, 
43.18 	professional organizations, and community-based organizations interested in science, 
43.19 	technology, engineering, or mathematics. 
43.20 		Subd. 2.Application and review process; funding priority. (a) School districts, 
43.21 	charter schools, intermediate districts, groups of districts that cooperate for a particular 
43.22 	purpose, and other public educational institutions interested in participating in this grant 
43.23 	program may apply to the commissioner, in the form and manner the commissioner 
43.24 	determines, for competitive funding to improve student achievement in, improve teaching 
43.25 	and learning of, and provide expanded access to science, technology, engineering, and 
43.26 	mathematics in a high school, consistent with subdivision 1.  The application must detail 
43.27 	the specific efforts the applicant intends to undertake to successfully implement innovative 
43.28 	strategies that affect the learning environment, academic content, and educational practices 
43.29 	in high school, and must include a proposed budget detailing the applicant's current and 
43.30 	proposed expenditures for these purposes. The proposed budget must demonstrate that the 
43.31 	applicant's efforts will supplement but not supplant expenditures the applicant currently 
43.32 	makes for science, technology, engineering, and mathematics teaching and learning. 
43.33 	Administrative expenditures must not exceed five percent of the proposed budget. The 
43.34 	commissioner may require an applicant to provide additional information.
44.1 	(b) When reviewing applications, the commissioner must determine whether 
44.2 	the applicant satisfied all the requirements in this subdivision and subdivision 1. The 
44.3 	commissioner may give funding priority to an otherwise qualified candidate that: 
44.4 	(1) combines day and evening programs; 
44.5 	(2) restructures grade 12 to allow students to complete out-of-school learning 
44.6 	experiences aligned with their in-school program; 
44.7 	(3) uses online learning options;
44.8 	(4) embeds higher level science, technology, engineering, and mathematics into 
44.9 	redesigned career and technical programs; 
44.10 	(5) enables students to receive both high school and college credit for successfully 
44.11 	completing science, technology, engineering, and mathematics programs and meeting 
44.12 	postsecondary institution placement requirements; 
44.13 	(6) targets low-income and other educationally at-risk students to improve their 
44.14 	participation and performance in science, technology, engineering, and mathematics 
44.15 	courses and careers; or 
44.16 	(7) strongly supports all students in exploring and preparing for careers in science, 
44.17 	technology, engineering, or mathematics. 
44.18 	The commissioner shall give funding priority to an otherwise qualified recipient 
44.19 	that received a grant for the previous fiscal year if the annual reports the recipient 
44.20 	submitted under subdivision 4 demonstrate that the recipient continues to improve student 
44.21 	achievement in, improve teaching and learning of, and provide expanded access to science, 
44.22 	technology, engineering, and mathematics in a high school.
44.23 		Subd. 3.Grants; permissible uses. (a) The commissioner may award grants to 
44.24 	applicants meeting the requirements of subdivisions 1 and 2.  The commissioner must 
44.25 	award grants on an equitable geographical basis to the extent feasible and consistent 
44.26 	with this section.  
44.27 	(b) Each grant recipient must expend all grant funds it receives consistent with its 
44.28 	approved application and budget and this section. 
44.29 		Subd. 4.Annual reports. (a) Each recipient of a grant under this section must 
44.30 	annually collect student and teacher data to demonstrate and measure the extent to which 
44.31 	the grant recipient improves student achievement in, improves teaching and learning of, 
44.32 	and provides expanded access to science, technology, engineering, and mathematics in 
44.33 	a high school, and must report the data to the commissioner in the form and manner 
44.34 	the commissioner determines. The commissioner must annually, by February 15, make 
44.35 	summary data about this program available to the committees with jurisdiction over 
44.36 	education policy and finance in the house of representatives and senate.
45.1 	(b) Each grant recipient under this section must  annually report to the commissioner, 
45.2 	consistent with the Uniform Financial Accounting and Reporting Systems, its actual 
45.3 	expenditures for the efforts it undertakes under this section. The report must demonstrate 
45.4 	that the grant recipient has maintained its effort from other sources for science, technology, 
45.5 	engineering, and mathematics teaching and learning efforts compared with the previous 
45.6 	fiscal year, and that the grant recipient has expended all grant funds it received under this 
45.7 	section consistent with its approved application and budget. Any unexpended grant funds 
45.8 	remaining at the end of a fiscal year must be reserved and expended consistent with the 
45.9 	grant recipient's approved budget for the subsequent fiscal year. 

45.10 	EFFECTIVE DATE. This section is effective the day following final enactment 
45.11 	and applies to the 2006-2007 school year.

45.12 	Sec. 24. Minnesota Statutes 2004, section 299F.30, is amended to read:
45.13 	299F.30 FIRE DRILL IN SCHOOL; DOORS AND EXITS.
45.14 		Subdivision 1.Duties of fire marshal. Consistent with sections 121A.035, 
45.15 	121A.037, and this section, it shall be the duty of the state fire marshal, deputies and 
45.16 	assistants, to require public and private schools and educational institutions to have at 
45.17 	least ninefive fire drills each school year and to keep all doors and exits unlocked from the 
45.18 	inside of the building during school hours.
45.19 		Subd. 2.Fire drill. Each superintendent, principal or other person in charge of a 
45.20 	public or private school, educational institution, children's home or orphanage housing 20 
45.21 	or more students or other persons, shall instruct and train such students or other persons to 
45.22 	quickly and expeditiously quit the premises in case of fire or other emergency by means of 
45.23 	drills or rapid dismissals at least once each month while such school, institution, home or 
45.24 	orphanage is in operation. Records of such drills shall be posted so that such records are 
45.25 	available for review by the state fire marshal at all times and shall include the drill date 
45.26 	and the time required to evacuate the building.
45.27 		Subd. 3.School doors and exits. Consistent with section 121A.035 and this 
45.28 	section, each superintendent, principal or other person in charge of a public or private 
45.29 	school, educational institution, children's home or orphanage shall keep all doors and exits 
45.30 	of such school, institution, home or orphanage unlocked so that persons can leave by such 
45.31 	doors or exits at any time during the hours of normal operation.

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

46.1 	Sec. 25. Laws 2003, First Special Session chapter 9, article 2, section 51, is amended 
46.2 	to read:
46.3 	Sec. 51.  CHARTER SCHOOL START-UP AID. 
46.4 	
46.5 	A charter school in its first year of operation during  fiscal year 2004 or 2005 is not 
46.6 	eligible for charter school start-up aid for fiscal years 2004 or 2005 under Minnesota 
46.7 	Statutes, section 124D.11, subdivision 8. A charter school in its first year of operation 
46.8 	during fiscal year 2005 is eligible for 65 percent of the charter school start-up aid the 
46.9 	charter school would otherwise receive for fiscal year 2006.

46.10 	EFFECTIVE DATE. This section is effective the day following final enactment 
46.11 	for revenue for fiscal year 2006. 

46.12 	Sec. 26. Laws 2005, First Special Session chapter 5, article 1, section 47, is amended 
46.13 	to read:
46.14 	Sec. 47.  ALTERNATIVE TEACHER COMPENSATION REVENUE  
46.15 	GUARANTEE.
46.16 	
46.17 	Notwithstanding Minnesota Statutes, sections 122A.415,  subdivision 1, and 
46.18 	126C.10, subdivision 34, paragraphs (a) and  (b), a school district that received alternative 
46.19 	teacher  compensation aid for fiscal year 2005, but does not qualify for  alternative 
46.20 	teacher compensation revenue for all sites in the  district for fiscal year 2006 or, 2007, 
46.21 	2008, or 2009, shall receive additional  basic alternative teacher compensation aid for 
46.22 	that fiscal year  equal to the lesser of the amount of alternative teacher  compensation 
46.23 	aid it received for fiscal year 2005 or the amount  it would have received for that fiscal 
46.24 	year under Minnesota  Statutes 2004, section 122A.415, subdivision 1, for teachers at  
46.25 	sites not qualifying for alternative teacher compensation  revenue for that fiscal year, if 
46.26 	the district submits a timely  application and the commissioner determines that the district  
46.27 	continues to implement an alternative teacher compensation  system, consistent with its 
46.28 	application under Minnesota Statutes  2004, section 122A.415, for fiscal year 2005.  The 
46.29 	additional  basic alternative teacher compensation aid under this section  must not be used 
46.30 	in calculating the alternative teacher  compensation levy under Minnesota Statutes, section 
46.31 	126C.10,  subdivision 35.  This section applies only to fiscal years 2006  and 2007 through 
46.32 	2009 and does not apply to later fiscal years.  

46.33 	Sec. 27. Laws 2005, First Special Session chapter 5, article 2, section 81, is amended 
46.34 	to read:
47.1 	Sec. 81.  BOARD OF SCHOOL ADMINISTRATORS; RULEMAKING 
47.2 	AUTHORITY.
47.3 	
47.4 	On or before June 30, 2007, the Board of School  Administrators may adopt 
47.5 	expedited rules under Minnesota  Statutes, section 14.389, to reflect the changes in duties, 
47.6 	responsibilities, and roles of school administrators under sections 121A.035, 121A.037 
47.7 	and 299F.30, and to make technical revisions and  clarifications to Minnesota Rules, 
47.8 	chapter 3512.  

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

47.10 	Sec. 28. Laws 2005, First Special Session chapter 5, article 2, section 84, subdivision 
47.11 	3, is amended to read:
47.12 	Subd. 3.  Charter school startup aid. For charter school  startup cost aid under 
47.13 	Minnesota Statutes, section 124D.11:  

47.14
47.15		$
	1,393,000
2,180,000
	.....
	2006
	
47.16
47.17		$
	3,185,000
2,446,000
	.....
	2007
	
47.18 	The 2006 appropriation includes $0 for 2005 and $1,393,000 $2,180,000 for 2006.  
47.19 	The 2007 appropriation includes $259,000$242,000 for 2006 and  $2,926,000
47.20 	$2,204,000 for 2007.  

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

47.22 	Sec. 29. Laws 2005, First Special Session chapter 5, article 2, section 84, subdivision 
47.23 	13, is amended to read:
47.24 	
47.25 	Subd. 13.  Examination fees; teacher training and support programs. (a) For 
47.26 	students' advanced placement and  international baccalaureate examination fees under 
47.27 	Minnesota  Statutes, section 120B.13, subdivision 3, and the training and  related costs 
47.28 	for teachers and other interested educators under  Minnesota Statutes, section 120B.13, 
47.29 	subdivision 1, and grants under Minnesota Statutes, section 120B.132:  

48.1		$
	4,500,000
	.....
	2006
	
48.2
48.3		$
	4,500,000
 6,000,000
	.....
	2007
	
48.4 	
48.5 	(b) The advanced placement program shall receive 75 percent  of the appropriation 
48.6 	each year and the international  baccalaureate program shall receive 25 percent of the  
48.7 	appropriation each year.  The department, in consultation with  representatives of the 
48.8 	advanced placement and international  baccalaureate programs selected by the Advanced 
48.9 	Placement  Advisory Council and IBMN, respectively, shall determine the  amounts of 
48.10 	the expenditures each year for examination fees and  training and support programs for 
48.11 	each program.  
48.12 	
48.13 	(c) Notwithstanding Minnesota Statutes, section 120B.13,  subdivision 1, at least 
48.14 	$500,000 each year is for teachers to  attend subject matter summer training programs 
48.15 	and follow-up  support workshops approved by the advanced placement or  international 
48.16 	baccalaureate programs.  The amount of the subsidy  for each teacher attending an 
48.17 	advanced placement or  international baccalaureate summer training program or workshop 
48.18 	shall be the same.  The commissioner shall determine the payment  process and the amount 
48.19 	of the subsidy.Teachers shall apply for teacher training scholarships to prepare for 
48.20 	teaching in the advanced placement or international baccalaureate program. Any reserved 
48.21 	funding not expended for teacher training may be used for exam fees and other support 
48.22 	programs for each program.
48.23 	
48.24 	(d) The commissioner shall pay all examination fees for all  students of low-income 
48.25 	families under Minnesota Statutes,  section 120B.13, subdivision 3, and to the extent 
48.26 	of available  appropriations shall also pay examination fees for students  sitting for an 
48.27 	advanced placement examination, international  baccalaureate examination, or both.  
48.28 	(e) $1,500,000 of the fiscal year 2007 appropriation is for grants under Minnesota 
48.29 	Statutes, section 120B.132.
48.30 	
48.31 	Any balance in the first year does not cancel but is  available in the second year.  
48.32 	

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

49.1 	Sec. 30. Laws 2005, First Special Session chapter 5, article 2, section 84, subdivision 
49.2 	16, is amended to read:
49.3 	
49.4 	Subd. 16.  Youth works program. For funding youth works  programs under 
49.5 	Minnesota Statutes, sections 124D.37 to 124D.45:  

49.6		$
	900,000
	.....
	2006
	
49.7
49.8		$
	900,000
1,150,000
	.....
	2007
	
49.9 	
49.10 	A grantee organization may provide health and child care  coverage to the dependents 
49.11 	of each participant enrolled in a  full-time youth works program to the extent such coverage 
49.12 	is not  otherwise available.  
49.13 	$200,000 of the 2007 appropriation is for training in early literacy skills and teaching 
49.14 	reading to preschool children under Minnesota Statutes, section 124D.42, subdivision 
49.15 	6, clause (3). Funding recipients must report to the commissioner on the impact of the 
49.16 	training on the early literacy and reading skills of the preschool children the recipients 
49.17 	served. This portion of the appropriation is onetime. 
49.18 	$50,000 of the 2007 appropriation is for the Admission Possible program. This 
49.19 	portion of the appropriation is onetime. 
49.20 	

49.21 	EFFECTIVE DATE. This section is effective for revenue for fiscal year 2007. 

49.22 	Sec. 31. CHINESE LANGUAGE PROGRAMS; CURRICULUM 
49.23 	DEVELOPMENT PROJECT.
 49.24 		Subdivision 1.Project parameters. (a) Notwithstanding other law to the contrary, 
49.25 	the commissioner of education may contract with the Board of Regents of the University 
49.26 	of Minnesota, the Center for Advanced Research on Language Acquisition (CARLA) or 
49.27 	other entity the commissioner determines is qualified to undertake the development of an 
49.28 	articulated kindergarten through grade 12 Chinese language curriculum for Minnesota 
49.29 	schools that involves:
49.30 	(1) creating a network of Chinese language teachers and educators able to 
49.31 	develop new and modify or expand existing world languages K-12 curricula, materials, 
49.32 	assessments, and best practices needed to provide Chinese language instruction to 
49.33 	students; and
50.1 	(2) coordinating statewide efforts to develop and expand Chinese language 
50.2 	instruction so that it is uniformly available to students throughout the state, and making 
50.3 	innovative use of media and technology, including television, distance learning, and online 
50.4 	courses to broaden students' access to the instruction.
50.5 	(b) The entity with which the commissioner contracts under paragraph (a) must have 
50.6 	sufficient knowledge and expertise to ensure the professional development of appropriate, 
50.7 	high quality curricula, supplementary materials, aligned assessments, and best practices 
50.8 	that accommodate different levels of student ability and types of programs.
50.9 	(c) Project participants must:
50.10 	(1) work throughout the project to develop curriculum, supplementary materials, 
50.11 	aligned assessments, and best practices; and
50.12 	(2) make curriculum, supplementary materials, aligned assessments, and best 
50.13 	practices equitably available to Minnesota schools and students.
50.14 		Subd. 2.Project participants. The entity with which the commissioner contracts 
50.15 	must work with the network of Chinese language teachers and educators to:
50.16 	(1) conduct an inventory of Chinese language curricula, supplementary materials, 
50.17 	and professional development initiatives currently used in Minnesota or other states;
50.18 	(2) develop Chinese language curricula and benchmarks aligned to local world 
50.19 	language standards and classroom-based assessments; and
50.20 	(3) review and recommend to the commissioner how best to build an educational 
50.21 	infrastructure to provide more students with Chinese language instruction, including 
50.22 	how to develop and provide: an adequate supply of Chinese language teachers; an 
50.23 	adequate number of high quality school programs; appropriate curriculum, instructional 
50.24 	materials, and aligned assessments that include technology-based delivery systems; 
50.25 	teacher preparation programs to train Chinese language teachers; expedited licensing of 
50.26 	Chinese language teachers; best practices in existing educational programs that can be 
50.27 	used to establish K-12 Chinese language programs; and technical assistance resources.
50.28 		Subd. 3. Applicability of Chinese language curriculum development project 
50.29 	work product to other world languages instruction. The commissioner must report to 
50.30 	the house of representatives and senate committees having jurisdiction over kindergarten 
50.31 	through grade 12 education policy and finance on the parameters of the Chinese language 
50.32 	curriculum development project by June 30, 2007.  The commissioner's report shall 
50.33 	examine the extent to which the project's work product can be applied to other world 
50.34 	languages, and the commissioner must include in the report current information about the 
50.35 	availability of world languages teachers, world languages curriculum, high-quality world 
51.1 	languages programs in schools, aligned world languages assessments, and best practices 
51.2 	applicable to world languages instruction.

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

51.4 	Sec. 32. ADVISORY TASK FORCE ON SCHOOL AND STAFF 
51.5 	EMERGENCY/ALL HAZARD PREPAREDNESS.
 51.6 	(a) An advisory task force on school and staff emergency/all hazard preparedness 
51.7 	is established to consider and recommend to the legislature proposals for strengthening 
51.8 	kindergarten through grade 12 crisis management and school safety efforts including, at 
51.9 	least, whether or not to:
51.10 	(1) develop specific K-12 teacher and school administrator competencies related to 
51.11 	emergency/all hazard preparedness;
51.12 	(2) provide emergency/all hazard preparedness training to currently licensed K-12 
51.13 	teachers and school administrators; 
51.14 	(3) incorporate emergency/all hazard preparedness competencies into existing 
51.15 	teacher and school administrator preparation curriculum;
51.16 	(4) identify key emergency/all hazard preparedness competencies appropriate to 
51.17 	teacher and school administrator preparation curriculum and ongoing teacher and school 
51.18 	administrator training; and
51.19 	(5) expect federal funds to supplement state emergency/all hazard preparedness 
51.20 	initiatives.
51.21 	(b) The commissioner of education shall appoint an advisory task force on school 
51.22 	and staff emergency/all hazard preparedness that is composed of a representative from 
51.23 	each of the following entities: the state Board of Teaching; the state Board of School 
51.24 	Administrators; the state fire marshal; law enforcement agencies; emergency responders; 
51.25 	school principals; school counselors; nonlicensed school employees; the Minnesota School 
51.26 	Boards Association; Education Minnesota; the Minnesota Department of Education; the 
51.27 	Minnesota Department of Health; the Minnesota Department of Public Safety; Minnesota 
51.28 	State Colleges and Universities; Minnesota Association of School Administrators; and 
51.29 	others recommended by task force members. Task force members' terms and other task 
51.30 	force matters are subject to Minnesota Statutes, section 15.059. The commissioner may 
51.31 	reimburse task force members from the education department's current operating budget 
51.32 	but may not compensate task force members for task force activities. The task force 
51.33 	must submit by February 15, 2007, to the education policy and finance committees of the 
51.34 	legislature a written report that includes recommendations on strengthening K-12 crisis 
51.35 	management and school safety efforts.
52.1 	(c) The task force expires February 16, 2007. 

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

52.3 	Sec. 33. 2006 SCHOOL ACCOUNTABILITY REPORT.
 52.4 	Notwithstanding Minnesota Statutes, section 120B.36, for 2006 reporting only, the 
52.5 	Department of Education may delay the release to the public and the posting of the 2006 
52.6 	school performance report cards and adequate yearly progress data on its public Web 
52.7 	site to no later than November 30, 2006.

52.8 	Sec. 34. ADVISORY TASK FORCE ON OPTIONS FOR ACCELERATED 
52.9 	K-12 TECHNOLOGY, SCIENCE, AND MATHEMATICS PROGRAMS 
52.10 	THROUGHOUT MINNESOTA.
 52.11 	(a) An advisory task force on options for accelerated kindergarten through grade 
52.12 	12 technology, science, and mathematics programs throughout Minnesota is established 
52.13 	to consider and recommend to the legislature alternatives for delivering accelerated 
52.14 	technology, science, and mathematics programs to eligible students throughout Minnesota 
52.15 	that include creating an academic center. Recommended programs must provide 
52.16 	accelerated technology, science, and mathematics instruction to eligible students in grades 
52.17 	6 through 12 and be cost effective and efficiently implemented and operated. Other 
52.18 	recommended programs may offer accelerated technology, science, and mathematics 
52.19 	instruction to other eligible elementary grade students,  provide out-of-school and summer 
52.20 	school K-12 technology, science, and mathematics instruction throughout the state, provide 
52.21 	professional development for K-12 teachers in technology, science and mathematics 
52.22 	curriculum and instruction, and develop technology, science and mathematics curriculum. 
52.23 	(b) The advisory task force at least must:
52.24 	(1) evaluate and compare at least five alternatives for delivering accelerated 
52.25 	technology, science, and mathematics programs to Minnesota students that include creating 
52.26 	an academic center that may be patterned after the Perpich Center for Arts Education 
52.27 	under Minnesota Statutes, chapter 129C, and may include online learning, satellite 
52.28 	technology, science, and mathematics centers, and a consortium of available accelerated 
52.29 	technology, science, and mathematics or accelerated education programs, among other 
52.30 	alternatives, and evaluate how such programs may be integrated into the academic center;
52.31 	(2) identify and evaluate possible members for a science, mathematics, engineering, 
52.32 	and technology leadership consortium composed of representatives of corporations, 
52.33 	organizations, educational institutions, and research facilities to help implement 
53.1 	accelerated K-12 technology, science, and mathematics programs in Minnesota that 
53.2 	include creating an academic center;
53.3 	(3) evaluate and compare at least three alternatives for preparing and assisting 
53.4 	educational leaders who are literate in technology, science, and mathematics to help 
53.5 	implement accelerated K-12 technology, science, and mathematics programs in Minnesota 
53.6 	that include creating an academic center and may include gifted education and accelerated 
53.7 	technology, science, and mathematics teacher training programs, and evaluate how such 
53.8 	programs may be integrated into the academic center; and 
53.9 	(4) identify and evaluate postsecondary career and technical education programs 
53.10 	offering or requiring accelerated technology, science, and mathematics instruction.
53.11 	(c) The commissioner of education shall appoint a 17-member advisory task force on 
53.12 	options for accelerated K-12 technology, science, and mathematics programs throughout 
53.13 	Minnesota that represents the following representatives: a gifted education coordinator, an 
53.14 	educator holding a gifted education certificate or an instructor in a graduate level gifted 
53.15 	education program; a currently licensed or retired high school physical science teacher; a 
53.16 	currently licensed or retired high school mathematics teacher; a faculty member providing 
53.17 	instruction under the Minnesota postsecondary enrollment options program or an educator 
53.18 	providing instruction under the college in the schools program; a faculty member or 
53.19 	educator providing instruction in the Minnesota talented youth mathematics program; a 
53.20 	University of Minnesota mathematics or engineering professor; a University of Minnesota 
53.21 	physical science professor; a manager or director in a high technology field, corporation, 
53.22 	organization, or facility; a manager or director in a medical field or profession; a manager 
53.23 	or director in a research-based field, corporation, organization, or facility; one or more 
53.24 	parents of high school students gifted in technology, mathematics, or science; a physical 
53.25 	science teacher and a biology teacher, one of whom is licensed to teach middle level 
53.26 	students and one of whom is licensed to teach high school level students; a high school 
53.27 	career and technical instructor; a faculty member in a postsecondary institution offering 
53.28 	technical two-year degrees who provides career and technical instruction; a manager or 
53.29 	director in a technology, mathematics, or science industry who employs persons with 
53.30 	associate degrees in a technical field; a manager or director in the biosciences industry; 
53.31 	and two at-large members. In appointing members, the commissioner must attempt to 
53.32 	ensure geographic balance. Task force members must actively seek the participation 
53.33 	of gifted and talented students to advise the task force throughout its existence on 
53.34 	any recommendations the task force proposes to submit to the legislature and on any 
53.35 	other recommendations related to this section. Task force members may not receive 
53.36 	compensation but may receive reimbursement for expenses related to serving on the task 
54.1 	force. The task force may receive, for the benefit of the task force, bequests, donations, 
54.2 	or gifts for any proper purpose and apply the bequests, donations, or gifts to the purpose 
54.3 	designated. Notwithstanding any other law to the contrary, the task force may conduct 
54.4 	meetings of its members by telephone or other electronic means where all members can 
54.5 	hear one another and all the discussion, at least one member is physically present at the 
54.6 	regular meeting location, and interested members of the public can hear all the discussion. 
54.7 	Task force members' terms and other task force matters are subject to Minnesota Statutes, 
54.8 	section 15.059.  The task force must submit by January 30, 2007, a written report and 
54.9 	presentation to the Education Policy and Finance committees of the legislature that include 
54.10 	recommendations on alternatives for delivering accelerated technology, science, and 
54.11 	mathematics programs to eligible students throughout Minnesota.
54.12 	(d) Upon request, the commissioner of education must provide the task force with 
54.13 	technical and other support services. The commissioner must use funds from the current 
54.14 	operating budget of the Department of Education to cover any costs the commissioner 
54.15 	incurs in providing services to the task force.
54.16 	(e) The task force expires June 30, 2007.

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

54.18 	Sec. 35. INTEGRATION REVENUE REDUCTION.
 54.19 	The commissioner of education must proportionately reduce all other school 
54.20 	districts' integration revenue in order to keep the total amount of integration revenue 
54.21 	unchanged.

54.22 	Sec. 36. APPROPRIATIONS; STUDENT ACHIEVEMENT STUDIES.
 54.23 		Subdivision 1.Department of Education. The sums indicated in this section are 
54.24 	appropriated from the general fund to the Department of Education for the fiscal years 
54.25 	designated.
54.26 		Subd. 2. Student assessment benchmark study.   For a benchmark study of student 
54.27 	assessments:

54.28		$
	75,000
	.....
	2007
	
54.29 	This appropriation is for the department to contract with ACHIEVE for a benchmark 
54.30 	study of Minnesota Comprehensive Assessments Second Edition (MCA-IIs) in 9th grade 
54.31 	writing, 10th grade reading, and 11th grade mathematics. The provisions of Minnesota 
54.32 	Statutes, chapter 16C, as they relate to competitive bidding do not apply to this contract. 
54.33 	This is a onetime appropriation.
55.1 		Subd. 3. International comparative achievement study.  For an international 
55.2 	comparative study of student achievement:

55.3		$
	600,000
	.....
	2007
	
55.4 	This appropriation is for the department to contract with Boston College for 
55.5 	Minnesota 4th and 8th grade students to participate in the TIMSS International assessment 
55.6 	of student achievement in mathematics and science. School districts must apply to 
55.7 	participate in the study on a form and in the manner prescribed by the commissioner. The 
55.8 	commissioner may select districts to participate if more districts than those applying are 
55.9 	needed for the study. The provisions of Minnesota Statutes, chapter 16C, as they relate to 
55.10 	competitive bidding do not apply to this contract. This is a onetime appropriation.
55.11 		Subd. 4.Schools mentoring schools. For schools mentoring schools regional site 
55.12 	grants under Minnesota Statutes, section 122A.628:

55.13		$
	100,000
	.....
	2007
	
55.14 	Of this appropriation $50,000 is for the Brainerd Teacher Support System-Brainerd 
55.15 	Public Schools, Center for Mentoring. Grant recipients must report to the education 
55.16 	commissioner on grant fund expenditures and the academic effects of the mentoring 
55.17 	provided under the program. This is a onetime appropriation.
55.18 		Subd. 5.District and high school redesign pilot project. For the district and high 
55.19 	school redesign pilot project under section 23:

55.20		$
	750,000
	.....
	2007
	
55.21 		Subd. 6.Chinese language. For the Chinese language curriculum project under 
55.22 	section 31:

55.23		$
	250,000
	.....
	2007
	
55.24 	This is a onetime appropriation. 

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

55.26 	Sec. 37. REVISOR'S INSTRUCTION.
 55.27 	The revisor of statutes shall change the term "alternative teacher professional 
55.28 	pay system," "alternative teacher compensation," "teacher professional pay system," 
55.29 	"alternative compensation," or similar terms to "QCOMP" wherever they appear in 
55.30 	Minnesota Statutes and Minnesota Rules.

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

56.1 	ARTICLE 3
56.2 	SPECIAL PROGRAMS

56.3 	Section 1. Minnesota Statutes 2004, section 123B.10, subdivision 1, is amended to read:
56.4 		Subdivision 1.Budgets. (a) For purposes of this subdivision, "direct classroom 
56.5 	expenditures" are instructional expenditures under the uniform financial accounting and 
56.6 	reporting standards (UFARS), excluding tuition payments to other Minnesota school 
56.7 	districts, capital expenditures, and expenditures for athletics, other cocurricular activities, 
56.8 	and extracurricular activities. "Total K-12 general operating expenditures" are the total 
56.9 	general fund expenditures for kindergarten through grade 12 under UFARS, excluding 
56.10 	tuition payments to other Minnesota school districts, pupil transportation expenditures, 
56.11 	and capital expenditures.
56.12 		(b) Every board must formally adopt, and may formally revise, a minimum percent 
56.13 	of total K-12 general operating expenditures that the board annually will allocate to direct 
56.14 	classroom expenditures. Every board must evaluate its allocation on an ongoing basis to 
56.15 	determine whether district expenditures are aligned with the district's academic goals.  
56.16 	(c) By October 1 November 30, every board must publish a report containing revenue 
56.17 	and expenditure budgets for the current year and; the actual revenues, expenditures, and 
56.18 	 fund balances for the prior year; and projected fund balances for the current year in a form 
56.19 	prescribed by the commissioner. The report must clearly show the percent of a district's 
56.20 	total K-12 operating expenditures that is allocated to direct classroom expenditures. The 
56.21 	prescribed reporting forms prescribed must be designed so that enable a district to make
56.22 	year to year comparisons of revenue, expenditures and fund balances can be made. A 
56.23 	district must publish these budgets, reports of revenue, expenditures and fund balances 
56.24 	must be published in a qualified newspaper of general circulation in the district or on the 
56.25 	district's official Web site. A district that electronically publishes the required information 
56.26 	also must publish the Internet address where the information is electronically available in 
56.27 	a qualified newspaper of general circulation in the district.

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

56.30 	Sec. 2. Minnesota Statutes 2005 Supplement, section 123B.76, subdivision 3, is 
56.31 	amended to read:
56.32 		Subd. 3.Expenditures by building. (a) For the purposes of this section, "building" 
56.33 	means education site as defined in section 123B.04, subdivision 1.
57.1 	(b) Each district shall maintain separate accounts to identify general fund 
57.2 	expenditures for each building. All expenditures for regular instruction, secondary 
57.3 	vocational instruction, and school administration must be reported to the department 
57.4 	separately for each building. All expenditures for special education instruction, 
57.5 	instructional support services, and pupil support services provided within a specific 
57.6 	building must be reported to the department separately for each building. Salary 
57.7 	expenditures reported by building must reflect actual salaries for staff at the building 
57.8 	and must not be based on districtwide averages. All other general fund expenditures 
57.9 	may be reported by building or on a districtwide basis. All expenditures for special 
57.10 	education instruction, services, and transportation for nonpublic school pupils must be 
57.11 	reported separately. 
57.12 	(c) The department must annually report information showing school district general 
57.13 	fund expenditures per pupil by program category for each building and estimated school 
57.14 	district general fund revenue generated by pupils attending each building on its Web 
57.15 	site. For purposes of this report:
57.16 	(1) expenditures not reported by building shall be allocated among buildings on a 
57.17 	uniform per pupil basis;
57.18 	(2) basic skills revenue shall be allocated according to section 126C.10, subdivision 
57.19 	4;
57.20 	(3) secondary sparsity revenue and elementary sparsity revenue shall be allocated 
57.21 	according to section 126C.10, subdivisions 7 and 8;
57.22 	(4) other general education revenue shall be allocated on a uniform per pupil unit 
57.23 	basis;
57.24 	(5) first grade preparedness aid shall be allocated according to section 124D.081;
57.25 	(6) state and federal special education aid and Title I aid shall be allocated in 
57.26 	proportion to district expenditures for these programs by building; and
57.27 	(7) other general fund revenues shall be allocated on a uniform per pupil basis, 
57.28 	except that the department may allocate other revenues attributable to specific buildings 
57.29 	directly to those buildings.
57.30 	(d) The amount of state and federal special education aid for nonpublic school 
57.31 	pupils receiving special education instruction, services, and transportation and the number 
57.32 	of nonpublic school pupils with a disability assessed and receiving special education 
57.33 	instruction, services, and transportation from school districts must be shown in a separate 
57.34 	category.

57.35 	EFFECTIVE DATE. This section is effective for fiscal year 2006 and later.

58.1 	Sec. 3. Minnesota Statutes 2004, section 125A.02, subdivision 1, is amended to read:
58.2 		Subdivision 1.Child with a disability. Every child who has a hearing impairment, 
58.3 	blindness, visual disability, speech or language impairment, physical handicap, other 
58.4 	health impairment, mental handicap, emotional/behavioral disorder, specific learning 
58.5 	disability, autism, traumatic brain injury, multiple disabilities, or deaf/blind disability and 
58.6 	needs special instruction and services, as determined by the standards of the commissioner, 
58.7 	is a child with a disability. In addition, every child under age three, and at local district 
58.8 	discretion from age three to age seven, who needs special instruction and services, as 
58.9 	determined by the standards of the commissioner, because the child has a substantial delay 
58.10 	or has an identifiable physical or mental condition known to hinder normal development is 
58.11 	a child with a disability.

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

58.13 	Sec. 4. Minnesota Statutes 2005 Supplement, section 125A.11, subdivision 1, is 
58.14 	amended to read:
58.15 		Subdivision 1.Nonresident tuition rate; other costs. (a) For fiscal year 2006, 
58.16 	when a school district provides instruction and services outside the district of residence, 
58.17 	board and lodging, and any tuition to be paid, shall be paid by the district of residence. The 
58.18 	tuition rate to be charged for any child with a disability, excluding a pupil for whom tuition 
58.19 	is calculated according to section 127A.47, subdivision 7, paragraph (d), must be the sum 
58.20 	of (1) the actual cost of providing special instruction and services to the child including 
58.21 	a proportionate amount for special transportation and unreimbursed building lease and 
58.22 	debt service costs for facilities used primarily for special education, plus (2) the amount 
58.23 	of general education revenue and referendum aid attributable to the pupil, minus (3) the 
58.24 	amount of special education aid for children with a disability received on behalf of that 
58.25 	child, minus (4) if the pupil receives special instruction and services outside the regular 
58.26 	classroom for more than 60 percent of the school day, the amount of general education 
58.27 	revenue and referendum aid, excluding portions attributable to district and school 
58.28 	administration, district support services, operations and maintenance, capital expenditures, 
58.29 	and pupil transportation, attributable to that pupil for the portion of time the pupil receives 
58.30 	special instruction inand services outside of the regular classroom. If the boards involved 
58.31 	do not agree upon the tuition rate, either board may apply to the commissioner to fix the 
58.32 	rate. Notwithstanding chapter 14, the commissioner must then set a date for a hearing or 
58.33 	request a written statement from each board, giving each board at least ten days' notice, 
58.34 	and after the hearing or review of the written statements the commissioner must make an 
58.35 	order fixing the tuition rate, which is binding on both school districts. General education 
59.1 	revenue and referendum aid attributable to a pupil must be calculated using the resident 
59.2 	district's average general education and referendum revenue per adjusted pupil unit.
59.3 	(b) For fiscal year 2007 and later, when a school district provides special instruction 
59.4 	and services for a pupil with a disability as defined in section 125A.02 outside the district 
59.5 	of residence, excluding a pupil for whom an adjustment to special education aid is 
59.6 	calculated according to section 127A.47, subdivision 7, paragraph (e), special education 
59.7 	aid paid to the resident district must be reduced by an amount equal to (1) the actual 
59.8 	cost of providing special instruction and services to the pupil, including a proportionate 
59.9 	amount for special transportation and unreimbursed building lease and debt service costs 
59.10 	for facilities used primarily for special education, plus (2) the amount of general education 
59.11 	revenue and referendum aid attributable to that pupil, minus (3) the amount of special 
59.12 	education aid for children with a disability received on behalf of that child, minus (4) if the 
59.13 	pupil receives special instruction and services outside the regular classroom for more than 
59.14 	60 percent of the school day, the amount of general education revenue and referendum 
59.15 	aid, excluding portions attributable to district and school administration, district support 
59.16 	services, operations and maintenance, capital expenditures, and pupil transportation, 
59.17 	attributable to that pupil for the portion of time the pupil receives special instruction in
59.18 	and services outside of the regular classroom. General education revenue and referendum 
59.19 	aid attributable to a pupil must be calculated using the resident district's average general 
59.20 	education revenue and referendum aid per adjusted pupil unit. Special education aid 
59.21 	paid to the district or cooperative providing special instruction and services for the pupil 
59.22 	must be increased by the amount of the reduction in the aid paid to the resident district. 
59.23 	Amounts paid to cooperatives under this subdivision and section 127A.47, subdivision 
59.24 	7, shall be recognized and reported as revenues and expenditures on the resident school 
59.25 	district's books of account under sections 123B.75 and 123B.76. If the resident district's 
59.26 	special education aid is insufficient to make the full adjustment, the remaining adjustment 
59.27 	shall be made to other state aid due to the district.
59.28 	(c) Notwithstanding paragraphs (a) and (b) and section 127A.47, subdivision 7, 
59.29 	paragraphs (d) and (e), a charter school where more than 30 percent of enrolled students 
59.30 	receive special education and related services, an intermediate district, or a special 
59.31 	education cooperative, or a school district that served as the applicant agency for a group 
59.32 	of school districts for federal special education aids for fiscal year 2006 may apply to the 
59.33 	commissioner for authority to charge the resident district an additional amount to recover 
59.34 	any remaining unreimbursed costs of serving pupils with a disability. The application must 
59.35 	include a description of the costs and the calculations used to determine the unreimbursed 
59.36 	portion to be charged to the resident district. Amounts approved by the commissioner 
60.1 	under this paragraph must be included in the tuition billings or aid adjustments under 
60.2 	paragraph (a) or (b), or section 127A.47, subdivision 7, paragraph (d) or (e), as applicable.
60.3 	(d) For purposes of this subdivision and section 127A.47, subdivision 7, paragraphs 
60.4 	(d) and (e), "general education revenue and referendum aid" means the sum of the general 
60.5 	education revenue according to section 126C.10, subdivision 1, excluding alternative 
60.6 	teacher compensation revenue, plus the referendum aid according to section 126C.17, 
60.7 	subdivision 7, as adjusted according to section 127A.47, subdivision 7, paragraphs (a), 
60.8 	(b), and (c).

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

60.10 	Sec. 5. Minnesota Statutes 2004, section 125A.18, is amended to read:
60.11 	125A.18 SPECIAL INSTRUCTION; NONPUBLIC SCHOOLS.
60.12 		Subdivision 1.Special instruction and services. No resident of a district who is 
60.13 	eligible for special instruction and services under this section may be denied instruction 
60.14 	and service on a shared time basis consistent with section  126C.19, subdivision 4, because 
60.15 	of attending a nonpublic school defined in section  123B.41, subdivision 9. If a resident 
60.16 	pupil with a disability attends a nonpublic school located within the district of residence, 
60.17 	the district must provide necessary transportation for that pupil within the district between 
60.18 	the nonpublic school and the educational facility where special instruction and services are 
60.19 	provided on a shared time basis. If a resident pupil with a disability attends a nonpublic 
60.20 	school located in another district and if no agreement exists under section  126C.19, 
60.21 	subdivision 1 or 2, for providing special instruction and services on a shared time basis to 
60.22 	that pupil by the district of attendance and where the special instruction and services are 
60.23 	provided within the district of residence, the district of residence must provide necessary 
60.24 	transportation for that pupil between the boundary of the district of residence and the 
60.25 	educational facility. The district of residence may provide necessary transportation for that 
60.26 	pupil between its boundary and the nonpublic school attended, but the nonpublic school 
60.27 	must pay the cost of transportation provided outside the district boundary. 
60.28 		Subd. 2.Due process. Parties serving students on a shared time basis have access 
60.29 	to the due process hearing system described under United States Code, title 20, and the 
60.30 	complaint system under Code of Federal Regulations, title 34, section 300.660-662. In the 
60.31 	event it is determined under these systems that the nonpublic school or staff impeded the 
60.32 	public school district's provision of a free appropriate education, the commissioner may 
60.33 	withhold public funds available to the nonpublic school proportionally applicable to that 
60.34 	student under section  123B.42. 
61.1 		Subd. 3.IEP team. (a) The individualized education program (IEP) team for a 
61.2 	nonpublic school pupil with a disability receiving special instruction and services under 
61.3 	this section must include at least one special education teacher from the pupil's nonpublic 
61.4 	school, or where appropriate, at least one special education provider of the pupil from 
61.5 	the pupil's nonpublic school or a representative from the pupil's nonpublic school. The 
61.6 	nonpublic school special education teacher, provider, or representative shall be included in 
61.7 	all phases of the IEP process including, but not limited to, evaluation, decision making, 
61.8 	implementation, and reevaluation.
61.9 	(b) As part of the evaluation process, the IEP team and other qualified professionals, 
61.10 	as appropriate, must include the pupil's parent or parents and the individuals specified in 
61.11 	paragraph (a).
61.12 	(c) The district's obligation to notify the nonpublic school special education teacher, 
61.13 	provider, or representative is the same obligation the district has under chapter 125A to 
61.14 	notify the parent of a child with a disability enrolled in a public school.

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

61.17 	Sec. 6. Minnesota Statutes 2004, section 125A.27, subdivision 11, is amended to read:
61.18 		Subd. 11.Interagency child find systems. "Interagency child find systems" 
61.19 	means activities developed on an interagency basis with the involvement of interagency 
61.20 	early intervention committees and other relevant community groups using rigorous 
61.21 	standards  to actively seek out, identify, and refer infants and young children, with, or at 
61.22 	risk of, disabilities, and their families, including a child under the age of three who: (1) 
61.23 	is involved in a substantiated case of abuse or neglect, or (2) is identified as affected by 
61.24 	illegal substance abuse or withdrawal symptoms resulting from prenatal drug exposure, to 
61.25 	reduce children's need for future services.

61.26 	Sec. 7. Minnesota Statutes 2005 Supplement, section 125A.28, is amended to read:
61.27 	125A.28 STATE INTERAGENCY COORDINATING COUNCIL.
61.28 	An Interagency Coordinating Council of at least 17, but not more than 25 members 
61.29 	is established, in compliance with Public Law 102-119 108-446, section 682 641. The 
61.30 	members must be appointed by the governor. Council members must elect the council 
61.31 	chair. The representative of the commissioner may not serve as the chair. The council 
61.32 	must be composed of at least five parents, including persons of color, of children with 
61.33 	disabilities under age 12, including at least three parents of a child with a disability 
62.1 	under age seven, five representatives of public or private providers of services for 
62.2 	children with disabilities under age five, including a special education director, county 
62.3 	social service director, local Head Start director, and a community health services or 
62.4 	public health nursing administrator, one member of the senate, one member of the 
62.5 	house of representatives, one representative of teacher preparation programs in early 
62.6 	childhood-special education or other preparation programs in early childhood intervention, 
62.7 	at least one representative of advocacy organizations for children with disabilities under 
62.8 	age five, one physician who cares for young children with special health care needs, one 
62.9 	representative each from the commissioners of commerce, education, health, human 
62.10 	services, a representative from the state agency responsible for child care, foster care, 
62.11 	mental health, a coordinator of education of children and youth who are homeless, and a 
62.12 	representative from Indian health services or a tribal council. Section 15.059, subdivisions 
62.13 	2 to 5, apply to the council. The council must meet at least quarterly.
62.14 	The council must address methods of implementing the state policy of developing 
62.15 	and implementing comprehensive, coordinated, multidisciplinary interagency programs of 
62.16 	early intervention services for children with disabilities and their families.
62.17 	The duties of the council include recommending policies to ensure a comprehensive 
62.18 	and coordinated system of all state and local agency services for children under age five 
62.19 	with disabilities and their families. The policies must address how to incorporate each 
62.20 	agency's services into a unified state and local system of multidisciplinary assessment 
62.21 	practices, individual intervention plans, comprehensive systems to find children in need of 
62.22 	services, methods to improve public awareness, and assistance in determining the role of 
62.23 	interagency early intervention committees.
62.24 	On the date that Minnesota Part C Annual Performance Report is submitted to the 
62.25 	federal Office of Special Education, the council must recommend to the governor and the 
62.26 	commissioners of education, health, human services, commerce, and employment and 
62.27 	economic development policies for a comprehensive and coordinated system.
62.28 	Notwithstanding any other law to the contrary, the State Interagency Coordinating 
62.29 	Council expires on June 30, 2009.

62.30 	Sec. 8. Minnesota Statutes 2004, section 125A.29, is amended to read:
62.31 	125A.29 RESPONSIBILITIES OF COUNTY BOARDS AND SCHOOL 
62.32 	BOARDS.
62.33 	(a) It is the joint responsibility of county boards and school boards to coordinate, 
62.34 	provide, and pay for appropriate services, and to facilitate payment for services from public 
62.35 	and private sources. Appropriate services for children eligible under section  125A.02 must 
63.1 	be determined in consultation with parents, physicians, and other educational, medical, 
63.2 	health, and human services providers. The services provided must be in conformity with:
63.3 	(1)  an IFSP for each eligible infant and toddler from birth through age two and its
63.4 	the infant's or toddler's  family,including:
63.5 	(i) American Indian infants and toddlers with disabilities and their families residing 
63.6 	on a reservation geographically located in the state;
63.7 	(ii) infants and toddlers with disabilities who are homeless and their families; and
63.8 	(iii) infants and toddlers with disabilities who are wards of the state;  or 
63.9 	(2) an individual education plan (IEP) or individual service plan (ISP) for each 
63.10 	eligible child ages three through four. 
63.11 	(b) Appropriate services include family education and counseling, home visits, 
63.12 	occupational and physical therapy, speech pathology, audiology, psychological services, 
63.13 	special instruction, nursing, respite, nutrition, assistive technology, transportation 
63.14 	and related costs, social work, vision services, case management including service 
63.15 	coordination under section  125A.33, medical services for diagnostic and evaluation 
63.16 	purposes, early identification, and screening, assessment, and health services necessary to 
63.17 	enable children with disabilities to benefit from early intervention services. 
63.18 	(c) School and county boards shall coordinate early intervention services. In the 
63.19 	absence of agreements established according to section  125A.39, service responsibilities 
63.20 	for children birth through age two are as follows: 
63.21 	(1) school boards must provide, pay for, and facilitate payment for special education 
63.22 	and related services required under sections  125A.05 and  125A.06; 
63.23 	(2) county boards must provide, pay for, and facilitate payment for noneducational 
63.24 	services of social work, psychology, transportation and related costs, nursing, respite, and 
63.25 	nutrition services not required under clause (1).
63.26 	(d) School and county boards may develop an interagency agreement according 
63.27 	to section  125A.39 to establish agency responsibility that assures early intervention 
63.28 	services are coordinated, provided, paid for, and that payment is facilitated from public 
63.29 	and private sources. 
63.30 	(e) County and school boards must jointly determine the primary agency in this 
63.31 	cooperative effort and must notify the commissioner of the state lead agency of their 
63.32 	decision.

63.33 	Sec. 9. Minnesota Statutes 2004, section 125A.30, is amended to read:
63.34 	125A.30 INTERAGENCY EARLY INTERVENTION COMMITTEES.
64.1 	(a) A school district, group of districts, or special education cooperative, in 
64.2 	cooperation with the health and human service agencies located in the county or counties 
64.3 	in which the district or cooperative is located, must establish an Interagency Early 
64.4 	Intervention Committee for children with disabilities under age five and their families 
64.5 	under this section, and for children with disabilities ages three to 22 consistent with 
64.6 	the requirements under sections  125A.023 and  125A.027. Committees must include 
64.7 	representatives of local health, education, and county human service agencies, county 
64.8 	boards, school boards, early childhood family education programs, Head Start, parents of 
64.9 	young children with disabilities under age 12, child care resource and referral agencies, 
64.10 	school readiness programs, current service providers, and may also include representatives 
64.11 	from other private or public agencies and school nurses. The committee must elect a chair 
64.12 	from among its members and must meet at least quarterly. 
64.13 	(b) The committee must develop and implement interagency policies and procedures 
64.14 	concerning the following ongoing duties:
64.15 	(1) develop public awareness systems designed to inform potential recipient 
64.16 	families, especially parents with premature infants, or infants with other physical risk 
64.17 	factors associated with learning or development complications, of available programs 
64.18 	and services;
64.19 	(2) to reduce families' need for future services, and especially parents with premature 
64.20 	infants, or infants with other physical risk factors associated with learning or development 
64.21 	complications, implement interagency child find systems designed to actively seek out, 
64.22 	identify, and refer infants and young children with, or at risk of, disabilities and their 
64.23 	families, including a child under the age of three who: (i) is involved in a substantiated 
64.24 	case of abuse or (ii) is identified as affected by illegal substance abuse or with withdrawal 
64.25 	symptoms resulting from prenatal drug exposure;
64.26 	(3) establish and evaluate the identification, referral, child and family assessment 
64.27 	systems, procedural safeguard process, and community learning systems to recommend, 
64.28 	where necessary, alterations and improvements;
64.29 	(4) assure the development of individualized family service plans for all eligible 
64.30 	infants and toddlers with disabilities from birth through age two, and their families, and 
64.31 	individual education plans and individual service plans when necessary to appropriately 
64.32 	serve children with disabilities, age three and older, and their families and recommend 
64.33 	assignment of financial responsibilities to the appropriate agencies;
64.34 	(5) encourage agencies to develop individual family service plans for children with 
64.35 	disabilities, age three and older;
65.1 	(6) implement a process for assuring that services involve cooperating agencies at all 
65.2 	steps leading to individualized programs;
65.3 	(7)(6)  facilitate the development of a transitional plan if a service provider is not 
65.4 	recommended to continue to provide services;
65.5 	(8)(7)  identify the current services and funding being provided within the 
65.6 	community for children with disabilities under age five and their families;
65.7 	(9)(8) develop a plan for the allocation and expenditure of additional state and 
65.8 	federal early intervention funds under United States Code, title 20, section 1471 et seq. 
65.9 	(Part C, Public Law 102-119 108-446) and United States Code, title 20, section 631, et 
65.10 	seq. (Chapter I, Public Law 89-313); and
65.11 	(10)(9)  develop a policy that is consistent with section  13.05, subdivision 9, and 
65.12 	federal law to enable a member of an interagency early intervention committee to allow 
65.13 	another member access to data classified as not public. 
65.14 	(c) The local committee shall also:
65.15 	(1) participate in needs assessments and program planning activities conducted by 
65.16 	local social service, health and education agencies for young children with disabilities and 
65.17 	their families; and
65.18 	(2) review and comment on the early intervention section of the total special 
65.19 	education system for the district, the county social service plan, the section or sections of 
65.20 	the community health services plan that address needs of and service activities targeted 
65.21 	to children with special health care needs, the section on children with special needs in 
65.22 	the county child care fund plan, sections in Head Start plans on coordinated planning and 
65.23 	services for children with special needs, any relevant portions of early childhood education 
65.24 	plans, such as early childhood family education or school readiness, or other applicable 
65.25 	coordinated school and community plans for early childhood programs and services, and 
65.26 	the section of the maternal and child health special project grants that address needs of and 
65.27 	service activities targeted to children with chronic illness and disabilities.

65.28 	Sec. 10. Minnesota Statutes 2004, section 125A.32, is amended to read:
65.29 	125A.32 INDIVIDUALIZED FAMILY SERVICE PLAN.
65.30 	(a) A team must participate in IFSP meetings to develop the IFSP. The team shall 
65.31 	include:
65.32 	(1) a parent or parents of the child;
65.33 	(2) other family members, as requested by the parent, if feasible to do so;
65.34 	(3) an advocate or person outside of the family, if the parent requests that the 
65.35 	person participate;
66.1 	(4) the service coordinator who has been working with the family since the 
66.2 	initial referral, or who has been designated by the public agency to be responsible for 
66.3 	implementation of the IFSP and coordination with other agencies including transition 
66.4 	services; and
66.5 	(5) a person or persons involved in conducting evaluations and assessments.
66.6 	(b) The IFSP must include:
66.7 	(1) information about the child's developmental status;
66.8 	(2) family information, with the consent of the family;
66.9 	(3) measurable results or major outcomes expected to be achieved by the child 
66.10 	and the family, with the family's assistance, that include thedevelopmentally appropriate 
66.11 	preliteracy and language skills, and criteria, procedures, and timelines related to the results 
66.12 	or outcomes;
66.13 	(4) specific early intervention services based on peer-reviewed research, to the 
66.14 	extent practicable, necessary to meet the unique needs of the child and the family to 
66.15 	achieve the outcomes;
66.16 	(5) payment arrangements, if any;
66.17 	(6) medical and other services that the child needs, but that are not required under 
66.18 	the Individual with Disabilities Education Act, United States Code, title 20, section 1471 
66.19 	et seq. (Part C, Public Law 102-119 108-446) including funding sources to be used in 
66.20 	paying for those services and the steps that will be taken to secure those services through 
66.21 	public or private sources;
66.22 	(7) dates and duration of early intervention services;
66.23 	(8) name of the service coordinator;
66.24 	(9) steps to be taken to support a child's transition from early intervention services to 
66.25 	other appropriate services, including convening a transition conference at least 90 days, or 
66.26 	at the discretion of all parties, not more than nine months before the child is eligible for 
66.27 	preschool services; and
66.28 	(10) signature of the parent and authorized signatures of the agencies responsible 
66.29 	for providing, paying for, or facilitating payment, or any combination of these, for early 
66.30 	intervention services.

66.31 	Sec. 11. Minnesota Statutes 2004, section 125A.33, is amended to read:
66.32 	125A.33 SERVICE COORDINATION.
66.33 	(a) The team developing the IFSP under section  125A.32 must select a service 
66.34 	coordinator to carry out service coordination activities on an interagency basis. Service 
66.35 	coordination must actively promote a family's capacity and competency to identify, 
67.1 	obtain, coordinate, monitor, and evaluate resources and services to meet the family's 
67.2 	needs. Service coordination activities include: 
67.3 	(1) coordinating the performance of evaluations and assessments;
67.4 	(2) facilitating and participating in the development, review, and evaluation of 
67.5 	individualized family service plans;
67.6 	(3) assisting families in identifying available service providers;
67.7 	(4) coordinating and monitoring the delivery of available services;
67.8 	(5) informing families of the availability of advocacy services;
67.9 	(6) coordinating with medical, health, and other service providers;
67.10 	(7) facilitating the development of a transition plan at least 90 days before the time 
67.11 	the child is no longer eligible for early intervention services, or at the discretion of all 
67.12 	parties, not more than nine months before the child is eligible for preschool services, 
67.13 	 if appropriate;
67.14 	(8) managing the early intervention record and submitting additional information to 
67.15 	the local primary agency at the time of periodic review and annual evaluations; and
67.16 	(9) notifying a local primary agency when disputes between agencies impact service 
67.17 	delivery required by an IFSP.
67.18 	(b) A service coordinator must be knowledgeable about children and families 
67.19 	receiving services under this section, requirements of state and federal law, and services 
67.20 	available in the interagency early childhood intervention system.

67.21 	Sec. 12. Minnesota Statutes 2004, section 125A.48, is amended to read:
67.22 	125A.48 STATE INTERAGENCY AGREEMENT.
67.23 	(a) The commissioners of the Departments of Education, Health, and Human 
67.24 	Services must enter into an agreement to implement this section and Part H C, Public 
67.25 	Law 102-119 108-446, and as required by Code of Federal Regulations, title 34, section  
67.26 	303.523, to promote the development and implementation of interagency, coordinated, 
67.27 	multidisciplinary state and local early childhood intervention service systems for serving 
67.28 	eligible young children with disabilities, birth through age two, and their families and 
67.29 	to ensure the meaningful involvement of underserved groups, including children with 
67.30 	disabilities from minority, low-income, homeless, and rural families, and children with 
67.31 	disabilities who are wards of the state. The agreement must be reviewed annually. 
67.32 	(b) The state interagency agreement must outline at a minimum the conditions, 
67.33 	procedures, purposes, and responsibilities of the participating state and local agencies 
67.34 	for the following:
68.1 	(1) membership, roles, and responsibilities of a state interagency committee for 
68.2 	the oversight of priorities and budget allocations under Part H C, Public Law 102-119
68.3 	108-446, and other state allocations for this program;
68.4 	(2) child find;
68.5 	(3) establishment of local interagency agreements;
68.6 	(4) review by a state interagency committee of the allocation of additional state and 
68.7 	federal early intervention funds by local agencies;
68.8 	(5) fiscal responsibilities of the state and local agencies;
68.9 	(6) intraagency and interagency dispute resolution;
68.10 	(7) payor of last resort;
68.11 	(8) maintenance of effort;
68.12 	(9) procedural safeguards, including mediation;
68.13 	(10) complaint resolution;
68.14 	(11) quality assurance;
68.15 	(12) data collection;
68.16 	(13) an annual summary to the state Interagency Coordinating Council regarding 
68.17 	conflict resolution activities including disputes, due process hearings, and complaints; and
68.18 	(14) other components of the state and local early intervention system consistent 
68.19 	with Public Law 102-119 108-446.
68.20 	Written materials must be developed for parents, IEIC's, and local service providers 
68.21 	that describe procedures developed under this section as required by Code of Federal 
68.22 	Regulations, title 34, section 303.

68.23 	Sec. 13. Minnesota Statutes 2004, section 125A.515, subdivision 1, is amended to read:
68.24 		Subdivision 1.Approval of education programs. The commissioner shall 
68.25 	approve education programs for placement of children and youth in care and treatment
68.26 	residential facilities including detention centers, before being licensed by the Department 
68.27 	of Human Services under Minnesota Rules, parts 9545.0905 to 9545.1125 and 9545.1400 
68.28 	to 9545.1480, or the Department of Corrections under Minnesota Rules, chapters 2925, 
68.29 	2930, 2935, and 2950. Education programs in these facilities shall conform to state and 
68.30 	federal education laws including the Individuals with Disabilities Education Act (IDEA). 
68.31 	This section applies only to placements in residential facilities licensed by the Department 
68.32 	of Human Services or the Department of Corrections.

68.33 	Sec. 14. Minnesota Statutes 2004, section 125A.515, subdivision 3, is amended to read:
69.1 		Subd. 3.Responsibilities for providing education. (a) The district in which the 
69.2 	residential facility is located must provide education services, including special education 
69.3 	if eligible, to all students placed in a facility for care and treatment.
69.4 	(b) For education programs operated by the Department of Corrections, the 
69.5 	providing district shall be the Department of Corrections. For students remanded to the 
69.6 	commissioner of corrections, the providing and resident district shall be the Department 
69.7 	of Corrections.
69.8 	(c) Placement for care and treatment does not automatically make a student eligible 
69.9 	for special education. A student placed in a care and treatment facility is eligible for 
69.10 	special education under state and federal law including the Individuals with Disabilities 
69.11 	Education Act under United States Code, title 20, chapter 33.

69.12 	Sec. 15. Minnesota Statutes 2004, section 125A.515, subdivision 5, is amended to read:
69.13 		Subd. 5.Education programs for students placed in residential facilities for 
69.14 	care and treatment. (a) When a student is placed in a care and treatment facility
69.15 	approved under this section that has an on-site education program, the providing district, 
69.16 	upon notice from the care and treatment facility, must contact the resident district within 
69.17 	one business day to determine if a student has been identified as having a disability, and 
69.18 	to request at least the student's transcript, and for students with disabilities, the most 
69.19 	recent individualized education plan (IEP) and evaluation report, and to determine if the 
69.20 	student has been identified as a student with a disability. The resident district must send a 
69.21 	facsimile copy to the providing district within two business days of receiving the request.
69.22 	(b) If a student placed for care and treatment under this section has been identified as 
69.23 	having a disability and has an individual education plan in the resident district:
69.24 	(1) the providing agency must conduct an individualized education plan meeting 
69.25 	to reach an agreement about continuing or modifying special education services in 
69.26 	accordance with the current individualized education plan goals and objectives and to 
69.27 	determine if additional evaluations are necessary; and
69.28 	(2) at least the following people shall receive written notice or documented phone 
69.29 	call to be followed with written notice to attend the individualized education plan meeting:
69.30 	(i) the person or agency placing the student;
69.31 	(ii) the resident district;
69.32 	(iii) the appropriate teachers and related services staff from the providing district;
69.33 	(iv) appropriate staff from the care and treatment residential facility;
69.34 	(v) the parents or legal guardians of the student; and
69.35 	(vi) when appropriate, the student.
70.1 	(c) For a student who has not been identified as a student with a disability, a 
70.2 	screening must be conducted by the providing districts as soon as possible to determine 
70.3 	the student's educational and behavioral needs and must include a review of the student's 
70.4 	educational records.

70.5 	Sec. 16. Minnesota Statutes 2004, section 125A.515, subdivision 6, is amended to read:
70.6 		Subd. 6.Exit report summarizing educational progress. If a student has been 
70.7 	placed in a care and treatment facility under this section for 15 or more business days, the 
70.8 	providing district must prepare an exit report summarizing the regular education, special 
70.9 	education, evaluation, educational progress, and service information and must send the 
70.10 	report to the resident district and the next providing district if different, the parent or 
70.11 	legal guardian, and any appropriate social service agency. For students with disabilities, 
70.12 	this report must include the student's IEP.

70.13 	Sec. 17. Minnesota Statutes 2004, section 125A.515, subdivision 7, is amended to read:
70.14 		Subd. 7.Minimum educational services required. When a student is placed in a 
70.15 	facility approved under this section, at a minimum, the providing district is responsible for:
70.16 	(1) the education necessary, including summer school services, for a student who is 
70.17 	not performing at grade level as indicated in the education record or IEP; and
70.18 	(2) a school day, of the same length as the school day of the providing district, unless 
70.19 	the unique needs of the student, as documented through the IEP or education record in 
70.20 	consultation with treatment providers, requires an alteration in the length of the school day.

70.21 	Sec. 18. Minnesota Statutes 2004, section 125A.515, subdivision 9, is amended to read:
70.22 		Subd. 9.Reimbursement for education services. (a) Education services 
70.23 	provided to students who have been placed for care and treatment under this section are 
70.24 	reimbursable in accordance with special education and general education statutes.
70.25 	(b) Indirect or consultative services provided in conjunction with regular education 
70.26 	prereferral interventions and assessment provided to regular education students suspected 
70.27 	of being disabled and who have demonstrated learning or behavioral problems in a 
70.28 	screening are reimbursable with special education categorical aids.
70.29 	(c) Regular education, including screening, provided to students with or without 
70.30 	disabilities is not reimbursable with special education categorical aids.

70.31 	Sec. 19. Minnesota Statutes 2004, section 125A.515, subdivision 10, is amended to 
70.32 	read:
71.1 		Subd. 10.Students unable to attend school but not placed in care and treatment 
71.2 	facilities covered under this section. Students who are absent from, or predicted to be 
71.3 	absent from, school for 15 consecutive or intermittent days, and placed at home or in 
71.4 	facilities not licensed by the Departments Department of Corrections or Human Services 
71.5 	are not students placed for care and treatment entitled to regular and special education 
71.6 	services, consistent with applicable law and rule. These students include students with 
71.7 	and without disabilities who are home due to accident or illness, in a hospital or other 
71.8 	medical facility, or in a day treatment center. These students are entitled to education 
71.9 	services through their district of residence.

71.10 	Sec. 20. Minnesota Statutes 2004, section 125A.63, subdivision 4, is amended to read:
71.11 		Subd. 4.Advisory committees. The Special Education Advisory Council
71.12 	commissioner shall establish an advisory committee for each resource center. The 
71.13 	advisory committees shall develop recommendations regarding the resource centers and 
71.14 	submit an annual report to the commissioner on the form and in the manner prescribed by 
71.15 	the commissioner.

71.16 	Sec. 21. Minnesota Statutes 2004, section 125A.75, subdivision 1, is amended to read:
71.17 		Subdivision 1.Travel aid. The state must pay each district one-half of the sum 
71.18 	actually expended by a district, based on mileage, for necessary travel of essential 
71.19 	personnel providing home-based services to children with a disability under age five 
71.20 	and their families.

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

71.22 	Sec. 22. Minnesota Statutes 2004, section 125A.76, is amended by adding a 
71.23 	subdivision to read:
71.24 		Subd. 4a.Special education maintenance of effort. If, on the basis of a forecast 
71.25 	of general fund revenues and expenditures, expenditures for special education aid under 
71.26 	section 125A.76; transition for disabled students under section 124D.454; travel for home- 
71.27 	based services under section 124A.75, subdivision 1; aid for students with disabilities 
71.28 	under section 125A.75, subdivision 3; court-placed special education under section 
71.29 	125A.79, subdivision 4; or out-of-state tuition under section 125A.79, subdivision 8; are 
71.30 	projected to be less than the amount previously forecast, the excess from these programs, 
71.31 	up to an amount sufficient to meet federal special education maintenance of effort, is 
71.32 	added to the state total special education aid in section 125A.76, subdivision 4.
72.1 	If, on the basis of a forecast of general fund revenues and expenditures, expenditures 
72.2 	in the programs in this subdivision are projected to be greater than previously forecast, 
72.3 	and an addition to state total special education aid has been made under this subdivision, 
72.4 	the state total special education aid must be reduced by the lesser of the amount of the 
72.5 	expenditure increase or the amount previously added to state total special education aid, 
72.6 	and this amount must be allocated back to the programs which were forecast to have 
72.7 	an excess.
72.8 	For the purposes of this subdivision, "previously forecast" means the allocation of 
72.9 	funding for these programs in either the most recent forecast of general fund revenues 
72.10 	and expenditures or the act appropriating money for these programs, whichever occurred 
72.11 	most recently.

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

72.13 	Sec. 23. Minnesota Statutes 2005 Supplement, section 125A.79, subdivision 1, is 
72.14 	amended to read:
72.15 		Subdivision 1.Definitions. For the purposes of this section, the definitions in this 
72.16 	subdivision apply.
72.17 	(a) "Unreimbursed special education cost" means the sum of the following:
72.18 	(1) expenditures for teachers' salaries, contracted services, supplies, equipment, and 
72.19 	transportation services eligible for revenue under section 125A.76; plus
72.20 	(2) expenditures for tuition bills received under sections 125A.03 to 125A.24 and 
72.21 	125A.65 for services eligible for revenue under section 125A.76, subdivision 2; minus
72.22 	(3) revenue for teachers' salaries, contracted services, supplies, and equipment under 
72.23 	section 125A.76; minus
72.24 	(4) tuition receipts under sections 125A.03 to 125A.24 and 125A.65 for services 
72.25 	eligible for revenue under section 125A.76, subdivision 2.
72.26 	(b) "General revenue" means the sum of the general education revenue according to 
72.27 	section 126C.10, subdivision 1, as adjusted according to section 127A.47, subdivisions 
72.28 	7 and 8 excluding alternative teacher compensation revenue, plus the total qualifying 
72.29 	referendum revenue specified in paragraph (e) minus transportation sparsity revenue 
72.30 	minus total operating capital revenue.
72.31 	(c) "Average daily membership" has the meaning given it in section 126C.05.
72.32 	(d) "Program growth factor" means 1.02 for fiscal year 2003, and 1.0 for fiscal 
72.33 	year 2004 and later.
72.34 	(e) "Total qualifying referendum revenue" means two-thirds of the district's total 
72.35 	referendum revenue as adjusted according to section 127A.47, subdivision 7, paragraphs 
73.1 	(a), (b), and (c), for fiscal year 2006, one-third of the district's total referendum revenue 
73.2 	for fiscal year 2007, and none of the district's total referendum revenue for fiscal year 
73.3 	2008 and later.

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

73.5 	Sec. 24. Minnesota Statutes 2004, section 626.556, subdivision 3c, is amended to read:
73.6 		Subd. 3c.Agency Local welfare agency, Department of Human Services 
73.7 	or Department of Health responsible for assessing or investigating reports of 
73.8 	maltreatment. The following agencies are the administrative agencies responsible for 
73.9 	assessing or investigating reports of alleged child maltreatment in facilities made under 
73.10 	this section:
73.11 	(1)(a) The county local welfare agency is the agency responsible for assessing or 
73.12 	investigating:
73.13 	(1) allegations of maltreatment in child foster care, family child care, and legally 
73.14 	unlicensed child care and in juvenile correctional facilities licensed under section  241.021
73.15 	located in the local welfare agency's county; and
73.16 	(2) until July 1, 2009, other allegations of maltreatment that are not the responsibility 
73.17 	of another agency. The commissioners of human services, public safety, and education 
73.18 	must jointly submit a written report by February 1, 2009, to the education policy and 
73.19 	finance committees of the legislature recommending the most efficient and effective 
73.20 	allocation of agency responsibility for assessing or investigating reports of maltreatment.
73.21 	(2)(b) The Department of Human Services is the agency responsible for assessing 
73.22 	or investigating allegations of maltreatment in facilities licensed under chapters 245A and 
73.23 	245B, except for child foster care and family child care; and.
73.24 	(3)(c) The Department of Health is the agency responsible for assessing or 
73.25 	investigating allegations of child maltreatment in facilities licensed under sections  144.50
73.26 	to  144.58, and in unlicensed home health care. 

73.27 	Sec. 25. RULE ON VISUALLY IMPAIRED TO INCLUDE REFERENCES TO 
73.28 	"BLIND" AND "BLINDNESS."
 73.29 	The commissioner of education, where appropriate, must incorporate references to 
73.30 	"blind" and "blindness" into the definition of visually impaired under Minnesota Rules, 
73.31 	part 3525.1345, and amend the rule title to include the word "blind."

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

74.1 	Sec. 26. DEPARTMENT OF EDUCATION RULES.
 74.2 	Before July 1, 2007, the Department of Education shall amend Minnesota Rules, 
74.3 	part 3525.2325, to conform with Minnesota Statutes, section 125A.515.

74.4 	Sec. 27.  SPECIAL EDUCATION TUITION BILLING FOR FISCAL YEARS 
74.5 	2006 AND 2007.
 74.6 	(a) Notwithstanding Minnesota Statutes, section 125A.11, subdivision 1, paragraph 
74.7 	(a), and Minnesota Statutes, section 127A.47, subdivision 7, paragraph (d), for fiscal year 
74.8 	2006 an intermediate district, special education cooperative, or a school district that served 
74.9 	as an applicant agency for a group of school districts for federal special education aids for 
74.10 	fiscal year 2006 is not subject to the uniform special education tuition billing calculations, 
74.11 	but may instead continue to bill the resident school districts for the actual unreimbursed 
74.12 	costs of serving pupils with a disability as determined by the intermediate district.
74.13 	(b) Notwithstanding Minnesota Statutes, section 125A.11, subdivision 1, paragraph 
74.14 	(c), for fiscal year 2007 only, an applicant district may apply to the commissioner for a 
74.15 	waiver from the uniform special education tuition calculations and aid adjustments under 
74.16 	Minnesota Statutes, section 125A.11, subdivision 1, paragraph (b), and Minnesota Statutes, 
74.17 	section 127A.47, subdivision 7, paragraph (e). The commissioner must grant the waiver 
74.18 	within 30 days of receiving the following information from the intermediate district:
74.19 	(1) a detailed description of the applicant district's methodology for calculating 
74.20 	special education tuition for fiscal years 2006 and 2007, as required by the applicant 
74.21 	district to recover the full cost of serving pupils with a disability;
74.22 	(2) sufficient data to determine the total amount of special education tuition actually 
74.23 	charged for each student with a disability, as required by the applicant district to recover 
74.24 	the full cost of serving pupils with a disability in fiscal year 2006; and
74.25 	(3) sufficient data to determine the amount that would have been charged for each 
74.26 	student for fiscal year 2006 using the uniform tuition billing methodology according 
74.27 	to Minnesota Statutes, section 125A.11, subdivision 1, or Minnesota Statutes, section 
74.28 	127A.47, subdivision 7, as applicable.

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

74.31 	Sec. 28.  REPEALER.
 74.32 	Minnesota Statutes 2004, sections 125A.10; and 125A.515, subdivision 2, are 
74.33 	repealed.

75.1 	ARTICLE 4
75.2 	FACILITIES AND TECHNOLOGY

75.3 	Section 1. Minnesota Statutes 2004, section 123A.44, is amended to read:
75.4 	123A.44 CITATION.
75.5 	Sections  123A.441 to  123A.446 may be cited as the "Cooperative Secondary
75.6 	Facilities Grant Act." 

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

75.8 	Sec. 2. Minnesota Statutes 2004, section 123A.441, is amended to read:
75.9 	123A.441 POLICY AND PURPOSE.
75.10 	Because of the rates of decline in school-aged population, population shifts and 
75.11 	economic changes that the state has experienced in recent years and anticipates in future 
75.12 	years, and because in some instances local districts have not, and will not be able to 
75.13 	provide the required construction funds through local property taxes, the purpose of the 
75.14 	cooperative secondary facilities grant program is to provide an incentive to encourage 
75.15 	cooperation in making available to all secondary students those educational programs, 
75.16 	services and facilities that are most efficiently and effectively provided by a cooperative 
75.17 	effort of several school districts. The policy and purpose of sections  123A.442 to  
75.18 	123A.446 is to use the credit of the state, to a limited degree, to provide grants to 
75.19 	cooperating groups of districts to improve and expand the educational opportunities and 
75.20 	facilities available to their secondary students. 

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

75.22 	Sec. 3. Minnesota Statutes 2004, section 123A.442, is amended to read:
75.23 	123A.442 APPROVAL AUTHORITY; APPLICATION FORMS.
75.24 		Subdivision 1.Approval by commissioner. To the extent money is available, the 
75.25 	commissioner may approve projects from applications submitted under section  123A.443. 
75.26 	The grant money must be used only to acquire, construct, remodel or improve the building 
75.27 	or site of a cooperative secondary facility under contracts to be entered into within 15 
75.28 	months after the date on which each grant is awarded. 
75.29 		Subd. 2.Cooperation and combination. Districts that have not already 
75.30 	consolidated and receive a cooperative secondary facilities grant after May 1, 1991, shall:
76.1 	(1) submit a consolidation plan as set forth in under section  123A.36 123A.48 for 
76.2 	approval by the State Board of Education before December 31, 1999, or Department of 
76.3 	Education after December 30, 1999; and 
76.4 	(2) hold a referendum on the question of combination consolidation no later than 
76.5 	four years after a grant is awarded under subdivision 1.
76.6 	The districts are eligible for cooperation and combination consolidation revenue 
76.7 	under section  123A.39, subdivision 3 123A.485. 
76.8 		Subd. 3.Consolidated districts. A school district that has consolidated with 
76.9 	another school district since July 1, 1980, is eligible for a cooperative facilities grant.

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

76.11 	Sec. 4. Minnesota Statutes 2004, section 123A.443, is amended to read:
76.12 	123A.443 GRANT APPLICATION PROCESS.
76.13 		Subdivision 1.Qualification. Any group of districts or a consolidated district 
76.14 	that meets the criteria required under subdivision 2 may apply for an incentive grant for 
76.15 	construction of a new secondary facility or for remodeling and improving an existing 
76.16 	secondary facility. A grant for new construction must not exceed the lesser of $5,000,000 
76.17 	or 7525 percent of the approved construction costs of a cooperative secondary education 
76.18 	facility. A grant for remodeling and improving an existing facility must not exceed 
76.19 	$200,000 $1,000,000.
76.20 		Subd. 2.Review by commissioner. (a) A group of districts or a consolidated district 
76.21 	that submits an application for a grant must submit a proposal to the commissioner for 
76.22 	review and comment under section  123B.71. The commissioner shall prepare a review 
76.23 	and comment on the proposed facility by July 1 of an odd-numbered year, regardless 
76.24 	of the amount of the capital expenditure required to acquire, construct, remodel, or 
76.25 	improve the secondary facility. The commissioner shall not approve an application for an 
76.26 	incentive grant for any secondary facility unless the facility receives a favorable review 
76.27 	and comment under section  123B.71 and the following criteria are met: 
76.28 	(1) the applicant is a consolidated district or a minimum of two or more districts, 
76.29 	with kindergarten to grade 12 enrollments in each district of no more than 1,200 pupils, 
76.30 	enter that have entered into a joint powers agreement;
76.31 	(2) for a group of districts, a joint powers board representing all participating 
76.32 	districts is established under section  471.59 to govern the cooperative secondary facility; 
76.33 	(3) the planned secondary facility will result in the joint powers district meeting the 
76.34 	requirements of Minnesota Rules, parts 3500.2010 and 3500.2110;
77.1 	(4) (3) at least 198 300 pupils would be served in grades 10 to kindergarten through 
77.2 	grade 12, 264 pupils would be served in grades 9 to 12, or 396 pupils would be served 
77.3 	in grades 7 to 12;
77.4 	(5) (4) for a group of districts, no more than one superintendent is employed by the 
77.5 	joint powers board as a result of the cooperative secondary facility agreement;
77.6 	(6) (5) a statement of need is submitted, that may include reasons why the current 
77.7 	secondary facilities are inadequate, unsafe or inaccessible to the handicapped disabled;
77.8 	(7) (6) an educational plan is prepared, that includes input from both community and 
77.9 	professional staff;
77.10 	(8) (7) for a group of districts, a combined seniority list for all participating districts 
77.11 	is developed by the joint powers board;
77.12 	(9) (8) for a group of districts, an education program is developed that provides for 
77.13 	more learning opportunities and course offerings, including the offering of advanced 
77.14 	placement courses, for students than is currently available in any single member district;
77.15 	(10) (9) a plan is developed for providing instruction of any resident students in 
77.16 	other districts when distance to the secondary education facility makes attendance at the 
77.17 	facility unreasonably difficult or impractical; and
77.18 	(11) (10) for a secondary facility, the joint powers board established under clause (2) 
77.19 	discusses with technical colleges located in the area how vocational education space in 
77.20 	the cooperative secondary facility could be jointly used for secondary and postsecondary 
77.21 	purposes.
77.22 	(b) To the extent possible, the joint powers board is encouraged to provide for 
77.23 	severance pay or for early retirement incentives under section  122A.48, for any teacher 
77.24 	or administrator, as defined under section  122A.40, subdivision 1, who is placed on 
77.25 	unrequested leave as a result of the cooperative secondary facility agreement. 
77.26 	(c) For the purpose of paragraph (a), clause (8) (7), each district must be considered 
77.27 	to have started school each year on the same date.
77.28 	(d) The districts may develop a plan that provides for the location of social service, 
77.29 	health, and other programs serving pupils and community residents within the cooperative 
77.30 	secondary facility. The commissioner shall consider this plan when preparing a review 
77.31 	and comment on the proposed facility.
77.32 	(e) The districts must schedule and conduct a meeting on library services. The 
77.33 	school districts, in cooperation with the regional public library system and its appropriate 
77.34 	member libraries, must discuss the possibility of including jointly operated library services 
77.35 	at the cooperative secondary facility.
78.1 	(f) The board of a district that has reorganized under section  123A.37 or  123A.48
78.2 	and that is applying for a grant for remodeling or improving an existing facility may act in 
78.3 	the place of a joint powers board to meet the criteria of this subdivision. 
78.4 		Subd. 3.Reorganizing districts. A district that is a member of a joint powers 
78.5 	board established under subdivision 2 and that is planning to reorganize under section  
78.6 	123A.45,  123A.46, or  123A.48 must notify the joint powers board one year in advance of 
78.7 	the effective date of the reorganization. Notwithstanding section  471.59 or any other law 
78.8 	to the contrary, the board of a district that reorganizes under section  123A.45,  123A.46, or  
78.9 	123A.48 may appoint representatives to the joint powers board who will serve on the joint 
78.10 	powers board for two years after the effective date of the reorganization if authorized in 
78.11 	the agreement establishing the joint powers board to govern the cooperative secondary
78.12 	facility. These representatives shall have the same powers as representatives of any other 
78.13 	school district under the joint powers agreement. 
78.14 		Subd. 4.District procedures. A joint powers board of a secondary district 
78.15 	established under subdivision 2 or a school board of a reorganized district that intends 
78.16 	to apply for a grant must adopt a resolution stating the proposed costs of the project, 
78.17 	the purpose for which the costs are to be incurred, and an estimate of the dates when 
78.18 	the facilities for which the grant is requested will be contracted for and completed. 
78.19 	Applications for the state grants must be accompanied by (a) a copy of the resolution, (b) 
78.20 	a certificate by the clerk and treasurer of the joint powers board showing the current 
78.21 	outstanding indebtedness of each member district, and (c) a certificate by the county 
78.22 	auditor of each county in which a portion of the joint powers district lies showing the 
78.23 	information in the auditor's official records that is required to be used in computing the 
78.24 	debt limit of the district under section  475.53, subdivision 4. The clerk's and treasurer's 
78.25 	certificate must show, as to each outstanding bond issue of each member district, the 
78.26 	amount originally issued, the purpose for which issued, the date of issue, the amount 
78.27 	remaining unpaid as of the date of the resolution, and the interest rates and due dates 
78.28 	and amounts of principal thereon. Applications and necessary data must be in the 
78.29 	form prescribed by the commissioner and the rules of the State Board of Education 
78.30 	before December 31, 1999, and after December 30, 1999, in the form prescribed by the 
78.31 	commissioner. Applications must be received by the commissioner by September 1 of an 
78.32 	odd-numbered year. When an application is received, the commissioner shall obtain from 
78.33 	the commissioner of revenue, and from the Public Utilities Commission when required, 
78.34 	the information in their official records that is required to be used in computing the debt 
78.35 	limit of the joint powers district under section  475.53, subdivision 4. 
79.1 		Subd. 5.Award of grants. By November 1 of the odd-numbered year, the 
79.2 	commissioner shall examine and consider all applications for grants, and if any district is 
79.3 	found not qualified, the commissioner shall promptly notify that board.
79.4 	A grant award is subject to verification by the district as specified in subdivision 
79.5 	8. A grant award for a new facility must not be made until the site of the secondary
79.6 	facility has been determined. A grant award to remodel or improve an existing facility 
79.7 	must not be made until the districts have reorganized. If the total amount of the approved 
79.8 	applications exceeds the amount that is or can be made available, the commissioner 
79.9 	shall allot the available amount equally between the approved applicant districts. The 
79.10 	commissioner shall promptly certify to each qualified district the amount, if any, of the 
79.11 	grant awarded to it.
79.12 		Subd. 6.Collocation grant. A group of districts that receives a grant for a new 
79.13 	facility under subdivision 4 is also eligible to receive an additional grant in the amount of 
79.14 	$1,000,000. To receive the additional grant, the group of districts must develop a plan 
79.15 	under subdivision 2, paragraph (d), that provides for the location of a significant number 
79.16 	of noneducational student and community service programs within the cooperative 
79.17 	secondary facility.
79.18 		Subd. 7.Referendum; bond issue. Within 180 days after being awarded a grant 
79.19 	for a new facility under subdivision 5, the joint powers board must submit the question 
79.20 	of authorizing the borrowing of funds for the secondary facility to the voters of the joint 
79.21 	powers district at a special election, which may be held in conjunction with the annual 
79.22 	election of the school board members of the member districts. The question submitted 
79.23 	must state the total amount of funding needed from all sources. A majority of those voting 
79.24 	in the affirmative on the question is sufficient to authorize the joint powers board to accept 
79.25 	the grant and to issue the bonds on public sale in accordance with according to chapter 
79.26 	475. The clerk of the joint powers board must certify the vote of the bond election to the 
79.27 	commissioner. If the question is approved by the voters, the commissioner shall notify the 
79.28 	approved applicant districts that the grant amount certified under subdivision 5 is available 
79.29 	and appropriated for payment under this subdivision. If a majority of those voting on the 
79.30 	question do not vote in the affirmative, the grant must be canceled.
79.31 		Subd. 8.Contract. Each grant must be evidenced by a contract between the board 
79.32 	and the state acting through the commissioner. The contract obligates the state to pay to 
79.33 	the board an amount computed according to subdivision 5, and according to a schedule, 
79.34 	and terms and conditions acceptable to the commissioner of finance.
79.35 		Subd. 9.Consolidation. A group of districts that operates a cooperative secondary
79.36 	facility that was acquired, constructed, remodeled, or improved under this section and 
80.1 	implements consolidation proceedings according to section  123A.48, may propose a 
80.2 	temporary school board structure in the petition or resolution required under section  
80.3 	123A.48, subdivision 2. The districts may propose the number of existing school board 
80.4 	members of each district to become members of the board of the consolidated district 
80.5 	and a method to gradually reduce the membership to six or seven. The proposal must 
80.6 	be approved, disapproved, or modified by the state board of education commissioner. 
80.7 	The election requirements of section  123A.48, subdivision 20, do not apply to a 
80.8 	proposal approved by the state board. Elections conducted after the effective date of the 
80.9 	consolidation are subject to the Minnesota Election Law. 

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

80.11 	Sec. 5. Minnesota Statutes 2005 Supplement, section 123B.53, subdivision 1, is 
80.12 	amended to read:
80.13 		Subdivision 1.Definitions. (a) For purposes of this section, the eligible debt service 
80.14 	revenue of a district is defined as follows:
80.15 	(1) the amount needed to produce between five and six percent in excess of the 
80.16 	amount needed to meet when due the principal and interest payments on the obligations 
80.17 	of the district for eligible projects according to subdivision 2, including the amounts 
80.18 	necessary for repayment of energy loans according to section 216C.37 or sections 298.292
80.19 	to 298.298, debt service loans and capital loans, lease purchase payments under section 
80.20 	126C.40, subdivision 2, alternative facilities levies under section 123B.59, subdivision 
80.21 	5, minus
80.22 	(2) the amount of debt service excess levy reduction for that school year calculated 
80.23 	according to the procedure established by the commissioner.
80.24 	(b) The obligations in this paragraph are excluded from eligible debt service revenue:
80.25 	(1) obligations under section 123B.61;
80.26 	(2) the part of debt service principal and interest paid from the taconite environmental 
80.27 	protection fund or Douglas J. Johnson economic protection trust;
80.28 	(3) obligations issued under Laws 1991, chapter 265, article 5, section 18, as 
80.29 	amended by Laws 1992, chapter 499, article 5, section 24; and
80.30 	(4) obligations under section 123B.62.
80.31 	(c) For purposes of this section, if a preexisting school district reorganized under 
80.32 	sections 123A.35 to 123A.43, 123A.46, and 123A.48 is solely responsible for retirement 
80.33 	of the preexisting district's bonded indebtedness, capital loans or debt service loans, debt 
80.34 	service equalization aid must be computed separately for each of the preexisting districts.
81.1 	(d) For purposes of this section, the adjusted net tax capacity determined according 
81.2 	to section 127A.48 shall be adjusted to include a portion of the tax capacity of property 
81.3 	generally exempted from ad valorem taxes under section 272.02, subdivisions 64 and 
81.4 	65, equal to the product of that tax capacity times the ratio of the eligible debt service 
81.5 	revenue attributed to general obligation bonds to the total eligible debt service revenue 
81.6 	of the district.
81.7 	(e) For fiscal year 2008, the debt service equalizing factor adjustment equals 1.0. For 
81.8 	fiscal year 2009 and later, the debt service equalizing factor adjustment equals the greater 
81.9 	of one or the ratio of the statewide adjusted net tax capacity for the year before the levy 
81.10 	is certified divided by the statewide adjusted pupil units in the fiscal year ending in the 
81.11 	year prior to the year the levy is certified to the 2004 statewide adjusted net tax capacity 
81.12 	divided by the statewide adjusted pupil units for fiscal year 2004.

81.13 	EFFECTIVE DATE. This section is effective for revenue for fiscal year 2008.

81.14 	Sec. 6. Minnesota Statutes 2004, section 123B.53, subdivision 5, is amended to read:
81.15 		Subd. 5.Equalized debt service levy. (a) The equalized debt service levy of a 
81.16 	district equals the sum of the first tier equalized debt service levy and the second tier 
81.17 	equalized debt service levy.
81.18 	(b) A district's first tier equalized debt service levy equals the district's first tier debt 
81.19 	service equalization revenue times the lesser of one or the ratio of:
81.20 	(1) the quotient derived by dividing the adjusted net tax capacity of the district for 
81.21 	the year before the year the levy is certified by the adjusted pupil units in the district for 
81.22 	the school year ending in the year prior to the year the levy is certified; to
81.23 	(2) $3,200 $5,000 times the debt service equalizing factor adjustment under section 
81.24 	123B.53, subdivision 1.
81.25 	(c) A district's second tier equalized debt service levy equals the district's second 
81.26 	tier debt service equalization revenue times the lesser of one or the ratio of:
81.27 	(1) the quotient derived by dividing the adjusted net tax capacity of the district for 
81.28 	the year before the year the levy is certified by the adjusted pupil units in the district for 
81.29 	the school year ending in the year prior to the year the levy is certified; to
81.30 	(2) $8,000 times the debt service equalizing factor adjustment under section 
81.31 	123B.53, subdivision 1.

81.32 	EFFECTIVE DATE. This section is effective for revenue for fiscal year 2008. 

81.33 	Sec. 7. TIMELINES WAIVED.
 82.1 	Notwithstanding the timelines in Minnesota Statutes, section 123A.443, Independent 
82.2 	School District No. 2134, United South Central, and the fiscal agent for Independent 
82.3 	School Districts Nos. 403, Ivanhoe, and 404, Lake Benton, may submit an application for 
82.4 	a cooperative facilities grant to the commissioner of education. The commissioner must 
82.5 	either approve, modify, or reject the application within 60 days of its receipt.

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

82.7 	Sec. 8. WASECA LEVY.
 82.8 	Independent School District No. 829, Waseca, may levy a total of up to $344,000 for 
82.9 	health and safety revenue lost due to miscalculation. This levy may be made over five or 
82.10 	fewer years beginning with taxes payable in 2007. If the district does not levy the full 
82.11 	amount authorized within the five-year period, other state aid due to the district shall be 
82.12 	reduced proportionately.

82.13 	Sec. 9. HEALTH AND SAFETY REVENUE USES; BELLE PLAINE.
 82.14 	Notwithstanding Minnesota Statutes, sections 123B.57 and 123B.59, upon approval 
82.15 	of the commissioner of education, Independent School District No. 716, Belle Plaine, may 
82.16 	use up to $125,000 of its health and safety revenue raised through an alternative facilities 
82.17 	bond for other qualifying health and safety projects.

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

82.19 	Sec. 10. LEASE LEVY; ADMINISTRATIVE SPACE, ROCORI AND 
82.20 	FARIBAULT.
 82.21 	Independent School Districts Nos. 656, Faribault, and 750, Rocori, may lease 
82.22 	administrative space under Minnesota Statutes, section 126C.40, subdivision 1, if the 
82.23 	district can demonstrate to the satisfaction of the commissioner of education that the 
82.24 	administrative space is less expensive than instructional space that the district would 
82.25 	otherwise lease. The commissioner must deny this levy authority unless the district 
82.26 	passes a resolution stating its intent to lease instructional space under Minnesota Statutes, 
82.27 	section 126C.40, subdivision 1, if the commissioner does not grant authority under this 
82.28 	section.  The resolution must also certify that a lease of administrative space under this 
82.29 	section is less expensive than the district's proposed instructional lease. Levy authority 
82.30 	under this section shall not exceed the total levy authority under Minnesota Statutes, 
82.31 	section 126C.40, subdivision 1, paragraph (e). 

83.1 	EFFECTIVE DATE. This section is effective for revenue for taxes payable in 
83.2 	2007. 

83.3 	Sec. 11. APPROPRIATIONS.
 83.4 		Subdivision 1.Department of Education. The sums indicated in this section are 
83.5 	appropriated from the general fund to the Department of Education for the fiscal years 
83.6 	designated.
83.7 		Subd. 2.Waseca. For payment of health and safety aid owed to Independent School 
83.8 	District No. 829, Waseca: 

83.9		$
	316,000
	.....
	2007

83.10 	ARTICLE 5
83.11 	SCHOOL DISTRICT ACCOUNTING

83.12 	Section 1. Minnesota Statutes 2004, section 123B.10, subdivision 1, is amended to read:
83.13 		Subdivision 1.Budgets. By October 1 November 30, every board must 
83.14 	publish revenue and expenditure budgets for the current year and the actual revenues, 
83.15 	expenditures, fund balances for the prior year and projected fund balances for the current 
83.16 	year in a form prescribed by the commissioner. The forms prescribed must be designed so 
83.17 	that year to year comparisons of revenue, expenditures and fund balances can be made. 
83.18 	These budgets, reports of revenue, expenditures and fund balances must be published in 
83.19 	a qualified newspaper of general circulation in the district or on the district's official 
83.20 	Web site. If published on the district's official Web site, the district must also publish an 
83.21 	announcement in a qualified newspaper of general circulation in the district that includes 
83.22 	the Internet address where the information has been posted.

83.23 	Sec. 2. Minnesota Statutes 2004, section 123B.143, subdivision 1, is amended to read:
83.24 		Subdivision 1.Contract; duties. All districts maintaining a classified secondary 
83.25 	school must employ a superintendent who shall be an ex officio nonvoting member of the 
83.26 	school board. The authority for selection and employment of a superintendent must be 
83.27 	vested in the board in all cases. An individual employed by a board as a superintendent 
83.28 	shall have an initial employment contract for a period of time no longer than three years 
83.29 	from the date of employment. Any subsequent employment contract must not exceed a 
83.30 	period of three years. A board, at its discretion, may or may not renew an employment 
83.31 	contract. A board must not, by action or inaction, extend the duration of an existing 
84.1 	employment contract. Beginning 365 days prior to the expiration date of an existing 
84.2 	employment contract, a board may negotiate and enter into a subsequent employment 
84.3 	contract to take effect upon the expiration of the existing contract. A subsequent contract 
84.4 	must be contingent upon the employee completing the terms of an existing contract. If a 
84.5 	contract between a board and a superintendent is terminated prior to the date specified in 
84.6 	the contract, the board may not enter into another superintendent contract with that same 
84.7 	individual that has a term that extends beyond the date specified in the terminated contract. 
84.8 	A board may terminate a superintendent during the term of an employment contract for any 
84.9 	of the grounds specified in section  122A.40, subdivision 9 or 13. A superintendent shall 
84.10 	not rely upon an employment contract with a board to assert any other continuing contract 
84.11 	rights in the position of superintendent under section  122A.40. Notwithstanding the 
84.12 	provisions of sections  122A.40, subdivision 10 or 11,  123A.32,  123A.75, or any other law 
84.13 	to the contrary, no individual shall have a right to employment as a superintendent based 
84.14 	on order of employment in any district. If two or more districts enter into an agreement for 
84.15 	the purchase or sharing of the services of a superintendent, the contracting districts have 
84.16 	the absolute right to select one of the individuals employed to serve as superintendent 
84.17 	in one of the contracting districts and no individual has a right to employment as the 
84.18 	superintendent to provide all or part of the services based on order of employment in a 
84.19 	contracting district. The superintendent of a district shall perform the following: 
84.20 	(1) visit and supervise the schools in the district, report and make recommendations 
84.21 	about their condition when advisable or on request by the board;
84.22 	(2) recommend to the board employment and dismissal of teachers;
84.23 	(3) superintend school grading practices and examinations for promotions;
84.24 	(4) make reports required by the commissioner; and 
84.25 	(5) by January 10, submit an annual report to the commissioner in a manner 
84.26 	prescribed by the commissioner, in consultation with school districts, identifying the 
84.27 	expenditures that the district requires to ensure an 80 percent student passage rate on the 
84.28 	basic standards test taken in the eighth grade, identifying the highest student passage 
84.29 	rate the district expects it will be able to attain on the basic standards test by grade 12, 
84.30 	the amount of expenditures that the district requires to attain the targeted student passage 
84.31 	rate, and how much the district is cross-subsidizing programs with special education, basic 
84.32 	skills, and general education revenue; and
84.33 	(6) perform other duties prescribed by the board.

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

85.1 	Sec. 3. Minnesota Statutes 2005 Supplement, section 123B.75, subdivision 5, is 
85.2 	amended to read:
85.3 		Subd. 5.Levy recognition. (a) "School district tax settlement revenue" means the 
85.4 	current, delinquent, and manufactured home property tax receipts collected by the county 
85.5 	and distributed to the school district.
85.6 	(b) For fiscal year 2004 and later years, in June of each year, the school district must 
85.7 	recognize as revenue, in the fund for which the levy was made, the lesser of:
85.8 	(1) the sum of May, June, and July school district tax settlement revenue received in 
85.9 	that calendar year, plus general education aid according to section 126C.13, subdivision 
85.10 	4, received in July and August of that calendar year; or
85.11 	(2) the sum of:
85.12 	(i) the greater of 48.6 percent of the referendum levy certified according to section 
85.13 	126C.17, in the prior calendar year or 31 percent of the referendum levy certified 
85.14 	according to section 126C.17, in calendar year 2000; plus and
85.15 	(ii) the entire amount of the levy certified in the prior calendar year according to 
85.16 	section 124D.86, subdivision 4, for school districts receiving revenue under sections 
85.17 	124D.86, subdivision 3, clauses (1), (2), and (3); 126C.41, subdivisions 1, 2, and 3, 
85.18 	paragraphs (b), (c), and (d); 126C.43, subdivision 2; 126C.457; and 126C.48, subdivision 
85.19 	6; plus.
85.20 	(iii) 48.6 percent of the amount of the levy certified in the prior calendar year 
85.21 	for the school district's general and community service funds, plus or minus auditor's 
85.22 	adjustments, not including levy portions that are assumed by the state, that remains after 
85.23 	subtracting the referendum levy certified according to section 126C.17 and the amount 
85.24 	recognized according to clause (ii).

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

85.26 	Sec. 4. Minnesota Statutes 2004, section 123B.79, is amended by adding a subdivision 
85.27 	to read:
85.28 		Subd. 9.Elimination of reserve accounts. A school board shall eliminate all 
85.29 	reserve accounts established in the school district's general fund under Minnesota Statutes 
85.30 	before July 1, 2005, for which no specific authority remains in statute as of June 30, 
85.31 	2006. Any balance in the district's reserved for bus purchases account as of June 30, 
85.32 	2006, shall be transferred to the reserved account for operating capital in the school 
85.33 	district's general fund. Any balance in other reserved accounts established in the school 
85.34 	district's general fund under Minnesota Statutes before July 1, 2005, for which no specific 
85.35 	authority remains in statute as of June 30, 2006, shall be transferred to the school district's 
86.1 	unreserved general fund balance. A school board may, upon adoption of a resolution by 
86.2 	the school board, establish a designated account for any program for which a reserved 
86.3 	account has been eliminated.

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

86.5 	Sec. 5. Minnesota Statutes 2004, section 127A.41, subdivision 2, is amended to read:
86.6 		Subd. 2.Errors in distribution. On determining that the amount of state aid 
86.7 	distributed to a school district is in error, the commissioner is authorized to adjust the 
86.8 	amount of aid consistent with this subdivision. On determining that the amount of aid is 
86.9 	in excess of the school district's entitlement, the commissioner is authorized to recover 
86.10 	the amount of the excess by any appropriate means. Notwithstanding the fiscal years 
86.11 	designated by the appropriation, the excess may be recovered by reducing future aid 
86.12 	payments to the district. Notwithstanding any law to the contrary, if the aid reduced is not 
86.13 	of the same type as that overpaid, the district must adjust all necessary financial accounts 
86.14 	to properly reflect all revenues earned in accordance with the uniform financial accounting 
86.15 	and reporting standards pursuant to sections  123B.75 to  123B.83. Notwithstanding the 
86.16 	fiscal years designated by the appropriation, on determining that the amount of an aid paid 
86.17 	is less than the school district's entitlement, the commissioner is authorized to increase 
86.18 	such aid from the current appropriation. If the aid program has been discontinued and has 
86.19 	no appropriation, the appropriation for general education shall be used for recovery or 
86.20 	payment of the aid decrease or increase. Any excess of aid recovery over aid payment 
86.21 	shall be canceled to the state general fund.

86.22 	Sec. 6. Minnesota Statutes 2005 Supplement, section 127A.45, subdivision 2, is 
86.23 	amended to read:
86.24 		Subd. 2.Definitions. (a) The term "other district receipts" means payments by 
86.25 	county treasurers pursuant to section 276.10, apportionments from the school endowment 
86.26 	fund pursuant to section 127A.33, apportionments by the county auditor pursuant to 
86.27 	section 127A.34, subdivision 2, and payments to school districts by the commissioner of 
86.28 	revenue pursuant to chapter 298.
86.29 	(b) The term "cumulative amount guaranteed" means the product of
86.30 	(1) the cumulative disbursement percentage shown in subdivision 3; times
86.31 	(2) the sum of
86.32 	(i) the current year aid payment percentage of the estimated aid and credit 
86.33 	entitlements paid according to subdivision 13; plus
86.34 	(ii) 100 percent of the entitlements paid according to subdivisions 11 and 12; plus
87.1 	(iii) the other district receipts.
87.2 	(c) The term "payment date" means the date on which state payments to districts 
87.3 	are made by the electronic funds transfer method. If a payment date falls on a Saturday, 
87.4 	a Sunday, or a weekday which is a legal holiday, the payment shall be made on the 
87.5 	immediately preceding business day. The commissioner may make payments on dates 
87.6 	other than those listed in subdivision 3, but only for portions of payments from any 
87.7 	preceding payment dates which could not be processed by the electronic funds transfer 
87.8 	method due to documented extenuating circumstances.
87.9 	(d) The current year aid payment percentage equals 90.

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

87.11 	Sec. 7. Minnesota Statutes 2005 Supplement, section 127A.45, subdivision 10, is 
87.12 	amended to read:
87.13 		Subd. 10.Payments to school nonoperating funds. Each fiscal year state general 
87.14 	fund payments for a district nonoperating fund must be made at the current year aid 
87.15 	payment percentage of the estimated entitlement during the fiscal year of the entitlement. 
87.16 	This amount shall be paid in 12 equal monthly installments. The amount of the actual 
87.17 	entitlement, after adjustment for actual data, minus the payments made during the fiscal 
87.18 	year of the entitlement must be paid prior to October 31 of the following school year. The 
87.19 	commissioner may make advance payments of debt service equalization aid and state-paid 
87.20 	tax credits for a district's debt service fund earlier than would occur under the preceding 
87.21 	schedule if the district submits evidence showing a serious cash flow problem in the fund. 
87.22 	The commissioner may make earlier payments during the year and, if necessary, increase 
87.23 	the percent of the entitlement paid to reduce the cash flow problem.

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

87.25 	Sec. 8. DEPARTMENT OF EDUCATION REPORT.
 87.26 	The Department of Education must provide a report to the education committees 
87.27 	of the legislature by January 15, 2007. The report must analyze the department's data 
87.28 	collection procedures under each of the department's major data reporting systems and 
87.29 	recommend a streamlined, Web-based, system of reporting school district data. The report 
87.30 	must also analyze any stand-alone school district reporting requirements and recommend 
87.31 	elimination of any district reports that are duplicative of other data already collected 
87.32 	by the department.

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

88.1 	Sec. 9. PROPERTY TAX CERTIFICATION; ROCHESTER SCHOOL 
88.2 	DISTRICT.
 88.3 	Notwithstanding Minnesota Statutes, sections 126C.48 and 275.065, with the 
88.4 	agreement of the school district's home county, Independent School District No. 535, 
88.5 	Rochester, on or before October 8, shall certify to the county auditor the district's proposed 
88.6 	property tax levy for taxes payable in the following year.

88.7 	EFFECTIVE DATE. This section is effective for taxes payable in 2007 and later.

88.8 	Sec. 10. FUND TRANSFERS.
 88.9 		Subdivision 1.Alden-Conger. Notwithstanding Minnesota Statutes, sections 
88.10 	123B.79 and 123B.80, as of June 30, 2006, Independent School District No. 242, 
88.11 	Alden-Conger, may permanently transfer up to $127,000 from its reserved for disabled 
88.12 	accessibility account to its unrestricted general fund account without making a levy 
88.13 	reduction for disability access projects which were paid for out of the district's unreserved 
88.14 	general fund account without an accounting adjustment to make the payments from the 
88.15 	correct account.
88.16 		Subd. 2.Hopkins. Notwithstanding Minnesota Statutes, section 123B.79 or 
88.17 	123B.80, on June 30, 2006, Independent School District No. 270, Hopkins, may 
88.18 	permanently transfer up to $150,000 from its community education reserve fund to its 
88.19 	undesignated general fund balance to assist the district in decreasing its statutory operating 
88.20 	debt.
88.21 		Subd. 3.Lester Prairie. Notwithstanding Minnesota Statutes, section 123B.79 or 
88.22 	123B.80, on June 30, 2006, Independent School District No. 424, Lester Prairie, may 
88.23 	permanently transfer up to $150,000 from its reserved for operating capital account and up 
88.24 	to $107,000 from its reserved for severance account to its undesignated balance in the 
88.25 	general fund.
88.26 		Subd. 4.Milroy. Notwithstanding Minnesota Statutes, section 123B.79 or 123B.80, 
88.27 	on June 30, 2006, Independent School District No. 635, Milroy, may permanently transfer 
88.28 	up to $26,000 from its reserved for disability accessibility account to its undesignated 
88.29 	general fund balance without making a levy reduction. 
88.30 		Subd. 5.Tyler. Notwithstanding Minnesota Statutes, section 123B.79 or 123B.80, 
88.31 	Independent School District No. 409, Tyler, on June 30, 2006, may permanently transfer 
88.32 	up to $451,000 from its reserved for capital operating account to its debt redemption fund.

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

89.1 	ARTICLE 6
89.2 	PUPIL TRANSPORTATION

89.3 	Section 1. Minnesota Statutes 2004, section 123B.90, subdivision 2, is amended to read:
89.4 		Subd. 2.Student training. (a) Each district must provide public school pupils 
89.5 	enrolled in kindergarten through grade 10 with age-appropriate school bus safety training, 
89.6 	as described in this section, of the following concepts:
89.7 	(1) transportation by school bus is a privilege and not a right;
89.8 	(2) district policies for student conduct and school bus safety;
89.9 	(3) appropriate conduct while on the school bus;
89.10 	(4) the danger zones surrounding a school bus;
89.11 	(5) procedures for safely boarding and leaving a school bus;
89.12 	(6) procedures for safe street or road crossing; and
89.13 	(7) school bus evacuation.
89.14 	(b) Each nonpublic school located within the district must provide all nonpublic 
89.15 	school pupils enrolled in kindergarten through grade 10 who are transported by school 
89.16 	bus at public expense and attend school within the district's boundaries with training as 
89.17 	required in paragraph (a).
89.18 	(c) Students enrolled in kindergarten through grade 6 who are transported by school 
89.19 	bus and are enrolled during the first or second week of school must receive the school bus 
89.20 	safety training competencies by the end of the third week of school. Students enrolled in 
89.21 	grades 7 through 10 who are transported by school bus and are enrolled during the first or 
89.22 	second week of school and have not previously received school bus safety training must 
89.23 	receive the training or receive bus safety instructional materials by the end of the sixth 
89.24 	week of school. Students taking driver's training instructional classes and other students in 
89.25 	grades 9 and grade 9 or 10 must receive training in the laws and proper procedures when 
89.26 	operating a motor vehicle in the vicinity of a school bus. Students enrolled in kindergarten 
89.27 	through grade 10 who enroll in a school after the second week of school and are 
89.28 	transported by school bus and have not received training in their previous school district 
89.29 	shall undergo school bus safety training or receive bus safety instructional materials 
89.30 	within four weeks of the first day of attendance. Upon request of the superintendent 
89.31 	of schools, the school transportation safety director in each district must certify to the 
89.32 	superintendent of schools annually that all students transported by school bus within 
89.33 	the district have received the school bus safety training according to this section. Upon 
89.34 	request of the superintendent of the school district where the nonpublic school is located, 
89.35 	the principal or other chief administrator of each nonpublic school must certify annually to 
90.1 	the school transportation safety director of the district in which the school is located that 
90.2 	the school's students transported by school bus at public expense have received training 
90.3 	according to this section.
90.4 	(d) A district and a nonpublic school with students transported by school bus at 
90.5 	public expense may provide kindergarten pupils with bus safety training before the first 
90.6 	day of school.
90.7 	(e) A district and a nonpublic school with students transported by school bus at 
90.8 	public expense may also provide student safety education for bicycling and pedestrian 
90.9 	safety, for students enrolled in kindergarten through grade 5.
90.10 	(f) A district and a nonpublic school with students transported by school bus at 
90.11 	public expense must make reasonable accommodations for the school bus safety training 
90.12 	of pupils known to speak English as a second language and pupils with disabilities.
90.13 	(g) The district and a nonpublic school with students transported by school bus at 
90.14 	public expense must provide students enrolled in kindergarten through grade 3 school bus 
90.15 	safety training twice during the school year.
90.16 	(h) A district and a nonpublic school with students transported by school bus at public 
90.17 	expense must conduct a school bus evacuation drill at least once during the school year.

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

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

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

90.25 	Sec. 3. Minnesota Statutes 2005 Supplement, section 123B.92, subdivision 1, is 
90.26 	amended to read:
90.27 		Subdivision 1.Definitions. For purposes of this section and section 125A.76, the 
90.28 	terms defined in this subdivision have the meanings given to them.
90.29 	(a) "Actual expenditure per pupil transported in the regular and excess transportation 
90.30 	categories" means the quotient obtained by dividing:
90.31 	(1) the sum of:
90.32 	(i) all expenditures for transportation in the regular category, as defined in paragraph 
90.33 	(b), clause (1), and the excess category, as defined in paragraph (b), clause (2), plus
91.1 	(ii) an amount equal to one year's depreciation on the district's school bus fleet 
91.2 	and mobile units computed on a straight line basis at the rate of 15 percent per year for 
91.3 	districts operating a program under section 124D.128 for grades 1 to 12 for all students in 
91.4 	the district and 12-1/2 percent per year for other districts of the cost of the fleet, plus
91.5 	(iii) an amount equal to one year's depreciation on the district's type three school 
91.6 	buses, as defined in section 169.01, subdivision 6, clause (5), which must be used a 
91.7 	majority of the time for pupil transportation purposes, computed on a straight line basis at 
91.8 	the rate of 20 percent per year of the cost of the type three school buses by:
91.9 	(2) the number of pupils eligible for transportation in the regular category, as defined 
91.10 	in paragraph (b), clause (1), and the excess category, as defined in paragraph (b), clause (2).
91.11 	(b) "Transportation category" means a category of transportation service provided to 
91.12 	pupils as follows:
91.13 	(1) Regular transportation is:
91.14 	(i) transportation to and from school during the regular school year for resident 
91.15 	elementary pupils residing one mile or more from the public or nonpublic school they 
91.16 	attend, and resident secondary pupils residing two miles or more from the public 
91.17 	or nonpublic school they attend, excluding desegregation transportation and noon 
91.18 	kindergarten transportation; but with respect to transportation of pupils to and from 
91.19 	nonpublic schools, only to the extent permitted by sections 123B.84 to 123B.87;
91.20 	(ii) transportation of resident pupils to and from language immersion programs;
91.21 	(iii) transportation of a pupil who is a custodial parent and that pupil's child between 
91.22 	the pupil's home and the child care provider and between the provider and the school, if 
91.23 	the home and provider are within the attendance area of the school;
91.24 	(iv) transportation to and from or board and lodging in another district, of resident 
91.25 	pupils of a district without a secondary school; and
91.26 	(v) transportation to and from school during the regular school year required under 
91.27 	subdivision 3 for nonresident elementary pupils when the distance from the attendance 
91.28 	area border to the public school is one mile or more, and for nonresident secondary pupils 
91.29 	when the distance from the attendance area border to the public school is two miles or 
91.30 	more, excluding desegregation transportation and noon kindergarten transportation.
91.31 	For the purposes of this paragraph, a district may designate a licensed day care 
91.32 	facility, school day care facility, respite care facility, the residence of a relative, or the 
91.33 	residence of a person chosen by the pupil's parent or guardian as the home of a pupil for 
91.34 	part or all of the day, if requested by the pupil's parent or guardian, and if that facility or 
91.35 	residence is within the attendance area of the school the pupil attends.
91.36 	(2) Excess transportation is:
92.1 	(i) transportation to and from school during the regular school year for resident 
92.2 	secondary pupils residing at least one mile but less than two miles from the public or 
92.3 	nonpublic school they attend, and transportation to and from school for resident pupils 
92.4 	residing less than one mile from school who are transported because of extraordinary 
92.5 	traffic, drug, or crime hazards; and
92.6 	(ii) transportation to and from school during the regular school year required under 
92.7 	subdivision 3 for nonresident secondary pupils when the distance from the attendance area 
92.8 	border to the school is at least one mile but less than two miles from the public school 
92.9 	they attend, and for nonresident pupils when the distance from the attendance area border 
92.10 	to the school is less than one mile from the school and who are transported because of 
92.11 	extraordinary traffic, drug, or crime hazards.
92.12 	(3) Desegregation transportation is transportation within and outside of the district 
92.13 	during the regular school year of pupils to and from schools located outside their normal 
92.14 	attendance areas under a plan for desegregation mandated by the commissioner or under 
92.15 	court order.
92.16 	(4) "Transportation services for pupils with disabilities" is:
92.17 	(i) transportation of pupils with disabilities who cannot be transported on a regular 
92.18 	school bus between home or a respite care facility and school;
92.19 	(ii) necessary transportation of pupils with disabilities from home or from school to 
92.20 	other buildings, including centers such as developmental achievement centers, hospitals, 
92.21 	and treatment centers where special instruction or services required by sections 125A.03
92.22 	to 125A.24, 125A.26 to 125A.48, and 125A.65 are provided, within or outside the district 
92.23 	where services are provided;
92.24 	(iii) necessary transportation for resident pupils with disabilities required by sections 
92.25 	125A.12, and 125A.26 to 125A.48;
92.26 	(iv) board and lodging for pupils with disabilities in a district maintaining special 
92.27 	classes;
92.28 	(v) transportation from one educational facility to another within the district for 
92.29 	resident pupils enrolled on a shared-time basis in educational programs, and necessary 
92.30 	transportation required by sections 125A.18, and 125A.26 to 125A.48, for resident pupils 
92.31 	with disabilities who are provided special instruction and services on a shared-time basis 
92.32 	or if resident pupils are not transported, the costs of necessary travel between public 
92.33 	and private schools or neutral instructional sites by essential personnel employed by the 
92.34 	district's program for children with a disability;
92.35 	(vi) transportation for resident pupils with disabilities to and from board and lodging 
92.36 	facilities when the pupil is boarded and lodged for educational purposes; and
93.1 	(vii) services described in clauses (i) to (vi), when provided for pupils with 
93.2 	disabilities in conjunction with a summer instructional program that relates to the pupil's 
93.3 	individual education plan or in conjunction with a learning year program established 
93.4 	under section 124D.128.
93.5 	For purposes of computing special education base revenue under section 125A.76, 
93.6 	subdivision 2, the cost of providing transportation for children with disabilities includes 
93.7 	(A) the additional cost of transporting a homeless student from a temporary nonshelter 
93.8 	home in another district to the school of origin, or a formerly homeless student from a 
93.9 	permanent home in another district to the school of origin but only through the end of the 
93.10 	academic year; and (B) depreciation on district-owned school buses purchased after July 1, 
93.11 	2005, and used primarily for transportation of pupils with disabilities, calculated according 
93.12 	to paragraph (a), clauses (ii) and (iii). Depreciation costs included in the disabled 
93.13 	transportation category must be excluded in calculating the actual expenditure per pupil 
93.14 	transported in the regular and excess transportation categories according to paragraph (a).
93.15 	(5) "Nonpublic nonregular transportation" is:
93.16 	(i) transportation from one educational facility to another within the district for 
93.17 	resident pupils enrolled on a shared-time basis in educational programs, excluding 
93.18 	transportation for nonpublic pupils with disabilities under clause (4);
93.19 	(ii) transportation within district boundaries between a nonpublic school and a 
93.20 	public school or a neutral site for nonpublic school pupils who are provided pupil support 
93.21 	services pursuant to section 123B.44; and
93.22 	(iii) late transportation home from school or between schools within a district for 
93.23 	nonpublic school pupils involved in after-school activities.
93.24 	(c) "Mobile unit" means a vehicle or trailer designed to provide facilities for 
93.25 	educational programs and services, including diagnostic testing, guidance and counseling 
93.26 	services, and health services. A mobile unit located off nonpublic school premises is a 
93.27 	neutral site as defined in section 123B.41, subdivision 13.

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

93.29 	Sec. 4. Minnesota Statutes 2004, section 169.01, subdivision 6, is amended to read:
93.30 		Subd. 6.School bus. "School bus" means a motor vehicle used to transport pupils 
93.31 	to or from a school defined in section  120A.22, or to or from school-related activities, by 
93.32 	the school or a school district, or by someone under an agreement with the school or a 
93.33 	school district. A school bus does not include a motor vehicle transporting children to or 
93.34 	from school for which parents or guardians receive direct compensation from a school 
93.35 	district, a motor coach operating under charter carrier authority, a transit bus providing 
94.1 	services as defined in section  174.22, subdivision 7, a multifunction school activity bus 
94.2 	as defined by federal motor vehicle safety standards, or a vehicle otherwise qualifying 
94.3 	as a type III vehicle under paragraph (5), when the vehicle is properly registered and 
94.4 	insured and being driven by an employee or agent of a school district for nonscheduled 
94.5 	or nonregular transportation. A school bus may be type A, type B, type C, or type D, or 
94.6 	type III as follows: 
94.7 	(1) A "type A school bus" is a van conversion or bus constructed utilizing a cutaway 
94.8 	front section vehicle with a left-side driver's door. The entrance door is behind the front 
94.9 	wheels. This definition includes two classifications: type A-I, with a gross vehicle weight 
94.10 	rating (GVWR) less than or equal to 10,000 14,500 pounds or less; and type A-II, with a 
94.11 	GVWR greater than 10,000 14,500 pounds and less than or equal to 21,500 pounds.
94.12 	(2) A "type B school bus" is constructed utilizing a stripped chassis. The entrance 
94.13 	door is behind the front wheels. This definition includes two classifications: type B-I, 
94.14 	with a GVWR less than or equal to 10,000 pounds; and type B-II, with a GVWR greater 
94.15 	than 10,000 pounds.
94.16 	(3) A "type C school bus" is constructed utilizing a chassis with a hood and front 
94.17 	fender assembly. The entrance door is behind the front wheels. A "type C school bus" also 
94.18 	includes a cutaway truck chassis or truck chassis with cab with or without a left side door 
94.19 	and with a GVWR greater than 21,500 pounds. 
94.20 	(4) A "type D school bus" is constructed utilizing a stripped chassis. The entrance 
94.21 	door is ahead of the front wheels.
94.22 	(5) Type III school buses and type III Head Start buses are restricted to passenger 
94.23 	cars, station wagons, vans, and buses having a maximum manufacturer's rated seating 
94.24 	capacity of ten or fewer people, including the driver, and a gross vehicle weight rating of 
94.25 	10,000 pounds or less. In this subdivision, "gross vehicle weight rating" means the value 
94.26 	specified by the manufacturer as the loaded weight of a single vehicle. A "type III school 
94.27 	bus" and "type III Head Start bus" must not be outwardly equipped and identified as a type 
94.28 	A, B, C, or D school bus or type A, B, C, or D Head Start bus. A van or bus converted to a 
94.29 	seating capacity of ten or fewer and placed in service on or after August 1, 1999, must 
94.30 	have been originally manufactured to comply with the passenger safety standards.

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

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

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

95.4 	Sec. 6. Minnesota Statutes 2004, section 169.4501, subdivision 1, is amended to read:
95.5 		Subdivision 1.National standards adopted. Except as provided in sections  
95.6 	169.4502 and  169.4503, the construction, design, equipment, and color of types A, 
95.7 	B, C, and D school buses used for the transportation of school children shall meet the 
95.8 	requirements of the "bus chassis standards" and "bus body standards" in the 2000 2005
95.9 	edition of the "National School Transportation Specifications and Procedures" adopted 
95.10 	by the National Conference Congress on School Transportation. Except as provided 
95.11 	in section  169.4504, the construction, design, and equipment of types A, B, C, and D 
95.12 	school buses used for the transportation of students with disabilities also shall meet the 
95.13 	requirements of the "specially equipped school bus standards" in the 2000 2005 National 
95.14 	School Transportation Specifications and Procedures. The "bus chassis standards," "bus 
95.15 	body standards," and "specially equipped school bus standards" sections of the 2000
95.16 	2005 edition of the "National School Transportation Specifications and Procedures" are 
95.17 	incorporated by reference in this chapter. 

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

95.19 	Sec. 7. Minnesota Statutes 2004, section 169.4501, subdivision 2, is amended to read:
95.20 		Subd. 2.Applicability. (a) The standards adopted in this section and sections  
95.21 	169.4502 and  169.4503, govern the construction, design, equipment, and color of school 
95.22 	buses used for the transportation of school children, when owned or leased and operated 
95.23 	by a school or privately owned or leased and operated under a contract with a school. 
95.24 	Each school, its officers and employees, and each person employed under the contract is 
95.25 	subject to these standards. 
95.26 	(b) The standards apply to school buses manufactured after October 31, 2004
95.27 	December 31, 2006. Buses complying with the standards when manufactured need not 
95.28 	comply with standards established later except as specifically provided for by law.
95.29 	(c) A school bus manufactured on or before October 31, 2004 December 31, 
95.30 	2006, must conform to the Minnesota standards in effect on the date the vehicle was 
95.31 	manufactured except as specifically provided for in law.
95.32 	(d) A new bus body may be remounted on a used chassis provided that the remounted 
95.33 	vehicle meets state and federal standards for new buses which are current at the time of the 
96.1 	remounting. Permission must be obtained from the commissioner of public safety before 
96.2 	the remounting is done. A used bus body may not be remounted on a new or used chassis.

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

96.4 	Sec. 8. Minnesota Statutes 2004, section 169.4502, subdivision 5, is amended to read:
96.5 		Subd. 5.Electrical system; battery. (a) The storage battery, as established by the 
96.6 	manufacturer's rating, must be of sufficient capacity to care for starting, lighting, signal 
96.7 	devices, heating, and other electrical equipment. In a bus with a gas-powered chassis, the 
96.8 	battery or batteries must provide a minimum of 800 cold cranking amperes. In a bus 
96.9 	with a diesel-powered chassis, the battery or batteries must provide a minimum of 1050 
96.10 	cold cranking amperes.
96.11 	(b) In a type B bus with a gross vehicle weight rating of 15,000 pounds or more, and 
96.12 	type C and D buses, the battery shall be temporarily mounted on the chassis frame. The 
96.13 	final location of the battery and the appropriate cable lengths in these buses must comply 
96.14 	with the SBMI design objectives booklet.
96.15 	(c) All batteries shall be mounted according to chassis manufacturers' 
96.16 	recommendations.
96.17 	(d) In a type C bus, other than are powered by diesel fuel, a battery providing at least 
96.18 	550 cold cranking amperes may be installed in the engine compartment only if used in 
96.19 	combination with a generator or alternator of at least 120 130 amperes.
96.20 	(e) A bus with a gross vehicle weight rating of 15,000 pounds or less may be 
96.21 	equipped with a battery to provide a minimum of 550 cold cranking amperes only if used 
96.22 	in combination with an alternator of at least 80 130 amperes. This paragraph does not 
96.23 	apply to those buses with wheelchair lifts or diesel engines.

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

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

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

96.31 	Sec. 10. Minnesota Statutes 2004, section 171.321, subdivision 4, is amended to read:
97.1 		Subd. 4.Training. (a) No person shall drive a class A, B, C, or D school bus when 
97.2 	transporting school children to or from school or upon a school-related trip or activity 
97.3 	without having demonstrated sufficient skills and knowledge to transport students in 
97.4 	a safe and legal manner.
97.5 	(b) A bus driver must have training or experience that allows the driver to meet at 
97.6 	least the following competencies:
97.7 	(1) safely operate the type of school bus the driver will be driving;
97.8 	(2) understand student behavior, including issues relating to students with 
97.9 	disabilities;
97.10 	(3) encourage orderly conduct of students on the bus and handle incidents of 
97.11 	misconduct appropriately;
97.12 	(4) know and understand relevant laws, rules of the road, and local school bus 
97.13 	safety policies;
97.14 	(5) handle emergency situations; and
97.15 	(6) safely load and unload students.
97.16 	(c) The commissioner of public safety shall develop a comprehensive model 
97.17 	school bus driver training program and model assessments for school bus driver training 
97.18 	competencies, which are not subject to chapter 14. A school district, nonpublic school, or 
97.19 	private contractor may use alternative assessments for bus driver training competencies 
97.20 	with the approval of the commissioner of public safety. After completion of bus driver 
97.21 	training competencies, a driver may receive at least eight hours of school bus in-service 
97.22 	training any year, as an alternative to being assessed for bus driver competencies. The 
97.23 	employer shall keep the assessment or a record of the in-service training for the current 
97.24 	period available for inspection by representatives of the commissioner.

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

97.26 	Sec. 11.  REPEALER.
 97.27 	Minnesota Statutes 2004, sections 169.4502, subdivision 15; and 169.4503, 
97.28 	subdivisions 17, 18, and 26, are repealed.

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

97.30 	ARTICLE 7
97.31 	EARLY CHILDHOOD EDUCATION

97.32 	Section 1. Laws 2005, First Special Session chapter 5, article 7, section 20, subdivision 
97.33 	5, is amended to read:
98.1 	
98.2 	Subd. 5. Head Start program. For Head Start programs  under Minnesota Statutes, 
98.3 	section 119A.52:  

98.4		$
	19,100,000
	.....
	2006
	
98.5		$
	19,100,000
	.....
	2007
	
98.6 	Any balance in the first year does not cancel but is available in the second year.
98.7 	

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

98.9 	ARTICLE 8
98.10 	PREVENTION AND COMMUNITY EDUCATION PROGRAMS

98.11 	Section 1. APPROPRIATIONS.
 98.12 		Subdivision 1.Department of Education. The sums indicated in this section are 
98.13 	appropriated from the general fund to the Department of Education for the fiscal years 
98.14 	designated.
98.15 		Subd. 2.Quantum opportunities. For a grant to Summit Academy OIC for the 
98.16 	quantum opportunities program:

98.17		$
	150,000
	.....
	2007
	
98.18 	By December 15, 2007, the department must report to the education committees of the 
98.19 	legislature on how the quantum opportunities program bridges the achievement gap. The 
98.20 	report must include disaggregated data test scores, dropout rates, graduation rates, and 
98.21 	postsecondary enrollment rates. This is a onetime appropriation.
98.22 		Subd. 3.Hard hats program. For a grant to the Summit Academy OIC for the 
98.23 	100 hard hats program:

98.24		$
	200,000
	.....
	2007
	
98.25 	This is a onetime appropriation.

98.26 	ARTICLE 9
98.27 	SELF-SUFFICIENCY AND LIFELONG LEARNING

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

99.4 	Sec. 2. Minnesota Statutes 2004, section 124D.52, subdivision 1, is amended to read:
99.5 		Subdivision 1.Program requirements. (a) An adult basic education program is a 
99.6 	day or evening program offered by a district that is for people over 16 years of age who do 
99.7 	not attend an elementary or secondary school. The program offers academic instruction 
99.8 	necessary to earn a high school diploma or equivalency certificate.
99.9 	(b) Notwithstanding any law to the contrary, a school board or the governing body of 
99.10 	a consortium offering an adult basic education program may adopt a sliding fee schedule 
99.11 	based on a family's income, but must waive the fee for participants who are under the 
99.12 	age of 21 or unable to pay. The fees charged must be designed to enable individuals of 
99.13 	all socioeconomic levels to participate in the program. A program may charge a security 
99.14 	deposit to assure return of materials, supplies, and equipment.
99.15 	(c) Each approved adult basic education program must develop a memorandum of 
99.16 	understanding with the local workforce development centers located in the approved 
99.17 	program's service delivery area. The memorandum of understanding must describe how 
99.18 	the adult basic education program and the workforce development centers will cooperate 
99.19 	and coordinate services to provide unduplicated, efficient, and effective services to clients.
99.20 	(d) Adult basic education aid must be spent for adult basic education purposes as 
99.21 	specified in sections  124D.518 to  124D.531. 
99.22 	(e) A state-approved adult basic education program must count and submit student 
99.23 	contact hours for a program that offers high school credit toward an adult high school 
99.24 	diploma according to student eligibility requirements and competency demonstration 
99.25 	requirements established by the commissioner.

99.26 	Sec. 3. GRANTS FOR INTENSIVE ENGLISH INSTRUCTION FOR ADULT 
99.27 	REFUGEES.
 99.28 	The commissioner of education shall establish a reimbursement grant program 
99.29 	to fund intensive English as a Second Language (ESL) programs for adult refugees. 
99.30 	Intensive ESL programming must provide intensive instruction for adult refugees who 
99.31 	are making inadequate literacy progress as measured by a standard assessment test. The 
99.32 	intensive instruction must be focused on participants gaining sufficient literacy to achieve 
99.33 	self-sufficiency through employment. Organizations eligible for grants under this section 
99.34 	include adult basic education programs, school districts, postsecondary institutions, 
100.1 	and nonprofit or community-based organizations or other private organizations with 
100.2 	experience in providing English language instruction to non-English speaking immigrants 
100.3 	and refugees. Grant applications must be in the form and manner determined by the 
100.4 	commissioner. At a minimum, the application must document experience in literacy 
100.5 	programs serving immigrants and refugees, describe fiscal accounting systems and 
100.6 	reporting capacity, ensure that administrative expenses are limited to five percent of grant 
100.7 	funds, and provide a description of the proposed instructional services and training 
100.8 	plans. Funds must be paid to programs on a reimbursement basis after grant recipients 
100.9 	demonstrate to the commissioner's satisfaction that program participants have gained 
100.10 	sufficient literacy to achieve self sufficiency through employment.

100.11 	Sec. 4. APPROPRIATIONS.
 100.12 		Subdivision 1.Department of Education. The sums indicated in this section are 
100.13 	appropriated from the general fund to the Department of Education for the fiscal years 
100.14 	designated.
100.15 		Subd. 2.Intensive English instruction for refugees. For a grant program for 
100.16 	intensive English instruction for adult refugees under section 3:

100.17		$
	750,000
	.....
	2007
	
100.18 	The base for this program in fiscal year 2008 is $750,000 and in fiscal year 2009 
100.19 	and later is $0.

100.20 	ARTICLE 10
100.21 	STATE AGENCIES

100.22 	Section 1. Minnesota Statutes 2004, section 122A.09, subdivision 4, is amended to 
100.23 	read:
100.24 		Subd. 4.License and rules. (a) The board must adopt rules to license public school 
100.25 	teachers and interns subject to chapter 14.
100.26 	(b) The board must adopt rules requiring a person to successfully complete a skills 
100.27 	examination in reading, writing, and mathematics as a requirement for initial teacher 
100.28 	licensure. Such rules must require college and universities offering a board-approved 
100.29 	teacher preparation program to provide remedial assistance to persons who did not 
100.30 	achieve a qualifying score on the skills examination, including those for whom English is 
100.31 	a second language.
101.1 	(c) The board must adopt rules to approve teacher preparation programs. The board, 
101.2 	upon the request of a postsecondary student preparing for teacher licensure or a licensed 
101.3 	graduate of a teacher preparation program, shall assist in resolving a dispute between the 
101.4 	person and a postsecondary institution providing a teacher preparation program when the 
101.5 	dispute involves an institution's recommendation for licensure affecting the person or the 
101.6 	person's credentials. At the board's discretion, assistance may include the application 
101.7 	of chapter 14.
101.8 	(d) The board must provide the leadership and shall adopt rules for the redesign of 
101.9 	teacher education programs to implement a research based, results-oriented curriculum 
101.10 	that focuses on the skills teachers need in order to be effective. The board shall implement 
101.11 	new systems of teacher preparation program evaluation to assure program effectiveness 
101.12 	based on proficiency of graduates in demonstrating attainment of program outcomes.
101.13 	(e) The board must adopt rules requiring successful completion of an examination 
101.14 	of general pedagogical knowledge and examinations of licensure-specific teaching 
101.15 	skills. The rules shall be effective on the dates determined by the board but not later 
101.16 	than September 1, 2001.
101.17 	(f) The board must adopt rules requiring teacher educators to work directly with 
101.18 	elementary or secondary school teachers in elementary or secondary schools to obtain 
101.19 	periodic exposure to the elementary or secondary teaching environment.
101.20 	(g) The board must grant licenses to interns and to candidates for initial licenses.
101.21 	(h) The board must design and implement an assessment system which requires a 
101.22 	candidate for an initial license and first continuing license to demonstrate the abilities 
101.23 	necessary to perform selected, representative teaching tasks at appropriate levels.
101.24 	(i) The board must receive recommendations from local committees as established 
101.25 	by the board for the renewal of teaching licenses.
101.26 	(j) The board must grant life licenses to those who qualify according to requirements 
101.27 	established by the board, and suspend or revoke licenses pursuant to sections  122A.20 and  
101.28 	214.10. The board must not establish any expiration date for application for life licenses. 
101.29 	(k) The board must adopt rules that require all licensed teachers who are renewing 
101.30 	their continuing license to include in their renewal requirements further preparation in 
101.31 	the areas of using positive behavior interventions and in accommodating, modifying, and 
101.32 	adapting curricula, materials, and strategies to appropriately meet the needs of individual 
101.33 	students and ensure adequate progress toward the state's graduation rule.
101.34 	(l) In adopting rules to license public school teachers who provide health-related 
101.35 	services for disabled children, the board shall adopt rules consistent with license or 
102.1 	registration requirements of the commissioner of health and the health-related boards who 
102.2 	license personnel who perform similar services outside of the school.
102.3 	(m) The board must adopt rules that require all licensed teachers who are renewing 
102.4 	their continuing license to include in their renewal requirements further reading 
102.5 	preparation, consistent with section  122A.06, subdivision 4. The rules do not take effect 
102.6 	until they are approved by law. Teachers who do not provide direct instruction including, at 
102.7 	least, counselors, school psychologists, school nurses, school social workers, audiovisual 
102.8 	directors and coordinators, and recreation personnel are exempt from this section. 
102.9 	(n) The board must adopt rules that require all licensed teachers who are renewing 
102.10 	their continuing license to include in their renewal requirements further preparation 
102.11 	in understanding the key warning signs of early-onset mental illness in children and 
102.12 	adolescents.
102.13 	(o) An otherwise qualified teacher (1) who holds a Minnesota professional classroom 
102.14 	teaching license, including a secondary career and technical teaching license, (2) is 
102.15 	recommended by the superintendent of the district in which the teacher is employed to 
102.16 	pursue licensure in an additional subject area, and (3) receives a qualifying score on 
102.17 	the appropriate Praxis II subject area exam must be licensed by the board to teach in 
102.18 	that additional subject area. A license to teach in an additional subject area is valid only 
102.19 	for the grade levels for which the teacher was licensed to teach before taking a Praxis 
102.20 	II exam under this paragraph unless the superintendent recommends to the board that 
102.21 	the additional subject area license allows the teacher to teach other grade levels. A 
102.22 	professional classroom teaching license is a nonvocational license to teach elementary 
102.23 	or secondary school subjects or kindergarten through grade 12 subjects, or a secondary 
102.24 	vocational license based on degree requirements in home economics education, industrial 
102.25 	education, agriculture education, business education, or marketing education and excludes 
102.26 	special education, English language learning, and any other license not specifically listed 
102.27 	in this paragraph. The teacher who seeks to be licensed in an additional subject area under 
102.28 	this paragraph must pay the actual costs of taking the Praxis II exam.
102.29 	(p) The board must: (1) adopt rules to license qualified candidates to teach chemistry, 
102.30 	physics, biology, and earth and space science; and (2) license a science teacher to teach 
102.31 	in a new science content area or level if the teacher holds a continuing license to teach 
102.32 	science and receives a qualifying score on an appropriate Praxis II test in a science subject 
102.33 	other than the teacher's currently licensed science field or level. A qualifying score is the 
102.34 	same test score used for initial licenses to teach science. A science teacher who seeks 
102.35 	licensure in a different science content area or level under this paragraph is responsible 
102.36 	for the actual costs of the required testing.

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

103.3 	Sec. 2. Minnesota Statutes 2004, section 122A.18, is amended by adding a subdivision 
103.4 	to read:
103.5 		Subd. 2c.Teacher preparation program data; report. The Board of Teaching 
103.6 	and the Department of Education, in cooperation with colleges and universities that 
103.7 	offer board-approved undergraduate teacher preparation programs and the Office of 
103.8 	Higher Education under section 136A.01, annually must collect valid, reliable, and timely 
103.9 	data about the state's teacher preparation programs. Each year, by June 1, the Board of 
103.10 	Teaching, the Department of Education, and the Office of Higher Education must publish 
103.11 	summary data in an understandable, useful, and readily accessible electronic format that is 
103.12 	available on a Web site jointly hosted by the department and the board. The summary 
103.13 	report at least must include:
103.14 	(1) the admissions requirements for each board-approved program;
103.15 	(2) a list of performance-based assessments for students enrolled in the program;
103.16 	(3) a list of faculty qualifications contained in program approval documents; 
103.17 	(4) the number of graduates by program who were hired to teach in Minnesota the 
103.18 	year after completing licensure requirements;
103.19 	(5) the number of required content area and other credits by licensing area needed to 
103.20 	graduate; and
103.21 	(6) the pass rates on skills and subject matter exams of program graduates who 
103.22 	receive an initial license. 

103.23 	EFFECTIVE DATE. This section is effective the day following final enactment 
103.24 	and applies to reports published beginning June 1, 2007.

103.25 	Sec. 3. [122A.245] INTERDISCIPLINARY TEACHING AND LEARNING 
103.26 	PROGRAM MODEL; TEACHER LICENSURE.
103.27 		Subdivision 1.Interdisciplinary teaching and learning program model. A board 
103.28 	of a school district or charter school may use an interdisciplinary teaching and learning 
103.29 	program model at a middle or secondary school to provide students the opportunity 
103.30 	to meet the rigorous academic standards under section 120B.02. An interdisciplinary 
103.31 	program is a school or program within a school which is designed to meet rigorous 
103.32 	academic standards in a non-course-based environment or with content taught with a 
103.33 	multidisciplinary approach. An interdisciplinary program provides:
104.1 	(1) students the opportunity to design multidisciplinary projects around personal 
104.2 	interests or persistent societal issues, or both, and gain real world knowledge and skills 
104.3 	through individualized demonstrated performance; and 
104.4 	(2) teachers as guides and facilitators of learning to create a learning environment 
104.5 	that promotes the world as the classroom rather than teachers as purveyors of knowledge.
104.6 		Subd. 2.Teacher licensure. (a) A person holding a position as an interdisciplinary 
104.7 	teacher in a middle or secondary school must be licensed under this section. An applicant 
104.8 	for an interdisciplinary license must:
104.9 	(1) have at least two years of successful classroom teaching experience at a middle 
104.10 	or secondary grade level while holding a current teaching license for the position or 
104.11 	positions in which the experience was gained; or
104.12 	(2) have at least two years of successful classroom teaching experience in a middle 
104.13 	or secondary level approved interdisciplinary program as an intern supervised by one or 
104.14 	more teachers teaching in that interdisciplinary program while holding a current license to 
104.15 	teach one or more content areas.
104.16 	(b) An applicant for licensure as an interdisciplinary teacher must complete a 
104.17 	postsecondary teacher preparation program approved by the Board of Teaching. Through 
104.18 	the approved teacher preparation program, an applicant must acquire the knowledge 
104.19 	and skills provided for in Minnesota Rules, part 8710.2000, and demonstrate successful 
104.20 	application of the knowledge and skills in simulated interdisciplinary settings or in current 
104.21 	district or charter school interdisciplinary programs.
104.22 	(c) For purposes of this subdivision, "classroom teaching license" means a license 
104.23 	to teach middle or secondary school content areas. It does not include limited licenses, 
104.24 	provisional licenses, intern licenses, or other temporary licenses.
104.25 		Subd. 3.Institutional requirement. (a) An institution applying to the Board of 
104.26 	Teaching for approval of a postsecondary teacher preparation program leading to licensure 
104.27 	as an interdisciplinary teacher must comply with Minnesota Rules, part 8700.7600. An 
104.28 	institution applying for program approval must include a description of how an applicant 
104.29 	for licensure as an interdisciplinary teacher may have experience and preparation in 
104.30 	the content areas included in the license evaluated by the institution. The evaluation 
104.31 	team must include representation from the teacher preparation program and practicing 
104.32 	interdisciplinary program directors, teachers, or both. The evaluation must result in a 
104.33 	plan for the applicant to complete the knowledge, skills, and abilities listed in Minnesota 
104.34 	Rules, part 8710.2000. The evaluation may include a reduction of the required teacher 
104.35 	preparation program credits necessary for an applicant to be recommended for licensure.
105.1 	(b) An approved postsecondary teacher preparation program must include an exit 
105.2 	evaluation that requires an applicant for licensure to demonstrate aptitude with the 
105.3 	knowledge, understanding, and abilities described under this section. The exit evaluation 
105.4 	must focus on skill components not previously demonstrated during completion of the 
105.5 	field-based experience. The exit evaluation must allow the applicant to demonstrate 
105.6 	aptitude with the knowledge areas within a reasonable period of time.
105.7 		Subd. 4.Rulemaking authority. The Board of Teaching must adopt rules providing 
105.8 	for licensure as an interdisciplinary teacher.

105.9 	Sec. 4. [122A.246] TEACHER TRAINING PROGRAM FOR QUALIFIED 
105.10 	PROFESSIONALS.
105.11 		Subdivision 1.Scope and requirements. (a) As an alternative to postsecondary 
105.12 	teacher preparation programs, a teacher training program is established for qualified 
105.13 	professionals to acquire an entrance license. Program providers, approved by the Board of 
105.14 	Teaching under subdivision 3, may offer the program in the instructional fields of science, 
105.15 	mathematics, world languages, English as a second language, and special education.
105.16 	(b) To participate in the teacher training program, the  teacher applicant must:
105.17 	(1) have, at a minimum, a bachelor's degree from an accredited four-year 
105.18 	postsecondary institution;
105.19 	(2) have an undergraduate major or postbaccalaureate degree in the subject to be 
105.20 	taught or in an equivalent or related subject area in which the applicant is seeking licensure;
105.21 	(3) pass a skills examination in reading, writing, and mathematics required under 
105.22 	section 122A.18;
105.23 	(4) pass the Praxis II subject assessment for each subject area to be taught;
105.24 	(5) have a cumulative grade point average of 2.75 or higher on a 4.0 scale for a 
105.25 	bachelor's degree;
105.26 	(6) show employment related to the subject to be taught;  and
105.27 	(7) show a district offer for employment as a teacher contingent on participating in 
105.28 	an approved program described in  subdivision 2.
105.29 		Subd. 2.Program. A teacher training program under this section is one year in 
105.30 	duration and must include:
105.31 	(1) a nine-credit summer or preinduction preparation program that includes 
105.32 	classroom management techniques and on-site classroom observation that are completed 
105.33 	before the candidate is employed in the classroom;
105.34 	(2) 200 clock hours of instruction in standards of effective practice and essential 
105.35 	skills that include curriculum, instructional strategies, and classroom management 
106.1 	presented after school or on Saturdays throughout the year leading to a teaching license 
106.2 	and up to 15 graduate credits toward a master's  degree in education;
106.3 	(3) on-the-job mentoring, supervision, and evaluation arranged by the employing 
106.4 	district that includes mentoring provided by both an experienced teacher licensed in 
106.5 	the subject taught by the applicant and a supervisor affiliated with the postsecondary 
106.6 	institution that provides training to the teacher applicant, and three evaluations by an 
106.7 	evaluation team composed of the mentor, the supervisor, the principal, and a training 
106.8 	program member that include at least three classroom observations where the third 
106.9 	evaluation contains the team's  recommendation for licensure and where a written report of 
106.10 	each evaluation is prepared; and
106.11 	(4) a one-week intensive workshop that includes analysis and reflection of the first 
106.12 	year of teaching after completing the school year, which may be counted as part of the 200 
106.13 	clock hours required in clause (2).
106.14 		Subd. 3.Program approval. An interested Minnesota public or private 
106.15 	postsecondary institution must submit program proposals to the Board of Teaching for 
106.16 	approval.
106.17 	Notwithstanding any law to the contrary, the Board of Teaching must develop 
106.18 	criteria for approving teacher training programs under this section after considering the 
106.19 	recommendations of an advisory group appointed by the Board of  Teaching composed of, 
106.20 	at a minimum, the commissioner of education or designee, and representatives of school 
106.21 	superintendents, principals, teachers, and postsecondary institutions, including those 
106.22 	offering degrees in teaching  preparation.
106.23 		Subd. 4.Eligibility license. Notwithstanding any law to  the contrary, the Board of 
106.24 	Teaching must issue to an applicant who successfully meets the criteria under subdivision 
106.25 	1, paragraph (b), a one-year eligibility license to teach at the employing district under 
106.26 	subdivision 1, paragraph (b), clause  (7). During the one-year eligibility period, the 
106.27 	employing district must assign a mentor under subdivision 2, clause (3). The applicant 
106.28 	teacher and teacher mentor must meet at least weekly throughout the school year on 
106.29 	classroom and instructional issues.
106.30 	The hiring district may deduct from the participant's salary the cost of providing the 
106.31 	mentor for the participant during the training year.
106.32 		Subd. 5.Standard entrance license. Notwithstanding any law to the contrary, the 
106.33 	Board of Teaching must issue a standard entrance license to a training program licensee 
106.34 	who successfully completes the program under subdivision 2, successfully teaches  in 
106.35 	a classroom for one complete school year, successfully passes the Praxis II principles 
107.1 	of learning and teaching, and receives a positive recommendation from the applicant's 
107.2 	evaluation team.
107.3 		Subd. 6.Qualified teacher. A person with a valid  eligibility license under 
107.4 	subdivision 5 is a qualified teacher  under section 122A.16.

107.5 	Sec. 5. [122A.416] ALTERNATIVE TEACHER COMPENSATION REVENUE 
107.6 	FOR PERPICH CENTER FOR ARTS EDUCATION AND MULTIDISTRICT 
107.7 	INTEGRATION COLLABORATIVES.
107.8 	Notwithstanding sections 122A.413, 122A.414, 122A.415, and 126C.10, 
107.9 	multidistrict integration collaboratives and the Perpich Center for Arts Education are 
107.10 	eligible to receive alternative teacher compensation revenue as if they were intermediate 
107.11 	school districts. To qualify for alternative teacher compensation revenue, a multidistrict 
107.12 	integration collaborative or the Perpich Center for Arts Education must meet all of the 
107.13 	requirements of sections 122A.413, 122A.414, and 122A.415 that apply to intermediate 
107.14 	school districts, must report its enrollment as of October 1 of each year to the department, 
107.15 	and must annually report its expenditures for the alternative teacher professional pay 
107.16 	system consistent with the uniform financial accounting and reporting standards to the 
107.17 	department by November 30 of each year.

107.18 	EFFECTIVE DATE. This section is effective for revenue for fiscal year 2007.

107.19 	Sec. 6. Minnesota Statutes 2004, section 123B.77, is amended by adding a subdivision 
107.20 	to read:
107.21 		Subd. 1a.School district consolidated financial statement. The commissioner 
107.22 	shall develop, implement, and maintain a school district consolidated financial statement 
107.23 	format that converts uniform financial accounting and reporting standards data under 
107.24 	subdivision 1 into a more understandable format.

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

107.26 	Sec. 7. Minnesota Statutes 2004, section 123B.77, subdivision 3, is amended to read:
107.27 		Subd. 3.Statement for comparison and correction. (a) By November 30 of the 
107.28 	calendar year of the submission of the unaudited financial data, the district must provide to 
107.29 	the commissioner audited financial data for the preceding fiscal year. The audit must be 
107.30 	conducted in compliance with generally accepted governmental auditing standards, the 
107.31 	federal Single Audit Act, and the Minnesota legal compliance guide issued by the Office 
107.32 	of the State Auditor. An audited financial statement prepared in a form which will allow 
108.1 	comparison with and correction of material differences in the unaudited financial data 
108.2 	shall be submitted to the commissioner and the state auditor by December 31. The audited 
108.3 	financial statement must also provide a statement of assurance pertaining to uniform 
108.4 	financial accounting and reporting standards compliance and a copy of the management 
108.5 	letter submitted to the district by the school district's auditor.
108.6 	(b) By December 15 of the calendar year of the submission of the unaudited financial 
108.7 	data, the commissioner shall convert the audited financial data required by this subdivision 
108.8 	into the consolidated financial statement format required under subdivision 1a and publish 
108.9 	the information on the department's Web site.

108.10 	EFFECTIVE DATE. This section is effective for financial statements prepared 
108.11 	in 2006.

108.12 	Sec. 8. Laws 2005, First Special Session chapter 5, article 10, section 5, subdivision 2, 
108.13 	is amended to read:
108.14 	
108.15 	Subd. 2.  DEPARTMENT. (a) For the Department of Education:  

108.16
108.17		$
	21,997,000
22,744,000
	.....
	2006
	
108.18
108.19		$
	22,847,000
23,451,000
	.....
	2007
	
108.20 	
108.21 	Any balance in the first year does not cancel but is  available in the second year.  
108.22 	
108.23 	(b) $260,000 each year is for the Minnesota Children's  Museum.  
108.24 	
108.25 	(c) $41,000 each year is for the Minnesota Academy of  Science.  
108.26 	
108.27 	(d) $605,000 each year is for the Board of Teaching.  
108.28 	
108.29 	(e) $160,000 each year is for the Board of School  Administrators.  
108.30 	
108.31 	(f) $300,000 in fiscal year 2006 and $1,150,000 in fiscal  year 2007 are for the 
108.32 	value-added index assessment model.  
108.33 	
109.1 	(g) The expenditures of federal grants and aids as shown in  the biennial budget 
109.2 	document and its supplements are approved  and appropriated and shall be spent as 
109.3 	indicated.  
109.4 	(h) $14,000 in fiscal year 2007 is for expenses of the Advisory Task Force 
109.5 	on Options for Accelerated K-12 Technology, Science, and Mathematics Programs 
109.6 	throughout Minnesota under article 2, section 34.
109.7 	(i) $25,000 in fiscal year 2007 is for the computer programming cost of the 
109.8 	consolidated financial statement in section 6.
109.9 	(j) $50,000 in fiscal year 2007 is for the study of the geographic labor cost 
109.10 	differences among school districts in section 9. 
109.11 	(k) $205,000 in fiscal year 2007 is for the Board of Teaching to adopt rules providing 
109.12 	for an interdisciplinary teaching license under Minnesota Statutes, section 122A.245. 
109.13 	(l) $300,000 in fiscal year 2007 is for the alternative teacher training program for 
109.14 	qualified professionals under Minnesota Statutes, section 122A.246. 
109.15 	(m) $10,000 in fiscal year 2007 is for administration of single purpose charter school 
109.16 	sponsors.
109.17 	(n) The base budget for the Department of Education for fiscal year 2008 and later 
109.18 	is $23,162,000 per year.
109.19 	(o) $25,000 in fiscal year 2007 is for the study of the uniformity of Minnesota's 
109.20 	system of public schools under section 10.
109.21 	

109.22 	Sec. 9. GEOGRAPHIC LABOR COST DIFFERENCES AMONG SCHOOL 
109.23 	DISTRICTS.
 109.24 		Subdivision 1.Study. The Department of Education must examine the impact 
109.25 	of labor cost differentials that exist in different regions of the state and develop 
109.26 	recommendations for adjusting the general education program to account for the 
109.27 	differences.  The department analysis must include an examination of how other states 
109.28 	address labor cost differentials and recommend methods for grouping school districts in 
109.29 	regions for purposes of recognizing labor cost adjustments.
109.30 		Subd. 2.Report required. The Department of Education must report its findings 
109.31 	to the legislative committees having jurisdiction over kindergarten through grade 12 
109.32 	education by January 15, 2007.

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

109.34 	Sec. 10. UNIFORM SYSTEM OF PUBLIC SCHOOLS.
 110.1 		Subdivision 1.Study. The stability of a republican form of government depending 
110.2 	mainly upon the intelligence of the people, the Department of Education must examine 
110.3 	the educational programs provided to students to determine if a uniform system of public 
110.4 	schools exists and make recommendations that would secure a thorough and efficient 
110.5 	system of public schools throughout the state. The department analysis must include an 
110.6 	examination of the opportunities for classes provided as well as the opportunity to be 
110.7 	taught by well prepared and qualified instructors throughout the state.
110.8 		Subd. 2.Report required. The Department of Education must report its findings to 
110.9 	the legislative committees having jurisdiction over birth through grade 12 education by 
110.10 	January 15, 2007.

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

110.12 	Sec. 11.  REPEALER.
 110.13 	Minnesota Statutes 2004, section 122A.24, is repealed.

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

110.16 	ARTICLE 11
110.17 	FORECAST ADJUSTMENTS

110.18 	Section 1. Laws 2005, First Special Session chapter 5, article 1, section 54, subdivision 
110.19 	3, is amended to read:
110.20 	Subd. 3.   Referendum tax base replacement aid. For  referendum tax base 
110.21 	replacement aid under Minnesota Statutes,  section 126C.17, subdivision 7a:

110.22
110.23		$
	8,704,000
9,200,000
	.....
	2006
	
110.24		$
	8,704,000
	.....
	2007
	
110.25 	The 2006 appropriation includes $1,366,000 for 2005 and  $7,338,000 $7,834,000
110.26 	for 2006.  
110.27 	The 2007 appropriation includes $1,366,000 $870,000 for 2006 and  $7,338,000
110.28 	$7,834,000 for 2007.

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

111.1 	Sec. 2. Laws 2005, First Special Session chapter 5, article 1, section 54, subdivision 5, 
111.2 	is amended to read:
111.3 	Subd. 5.  Abatement revenue.  For abatement aid under  Minnesota Statutes, section 
111.4 	127A.49:

111.5
111.6		$
	903,000
909,000
	.....
	2006
	
111.7
111.8		$
	955,000
1,026,000
	.....
	2007
	
111.9 	The 2006 appropriation includes $187,000 for 2005 and  $716,000$722,000 for 2006.  
111.10 	The 2007 appropriation includes $133,000$80,000 for 2006 and  $822,000$946,000 
111.11 	for 2007.

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

111.13 	Sec. 3. Laws 2005, First Special Session chapter 5, article 1, section 54, subdivision 6, 
111.14 	is amended to read:
111.15 	Subd. 6.  Consolidation transition. For districts  consolidating under Minnesota 
111.16 	Statutes, section 123A.485:

111.17
111.18		$
	253,000
527,000
	.....
	2007
	
111.19 	The 2007 appropriation includes $0 for 2006 and $253,000 $527,000 for 2007.  

111.20 	Sec. 4. Laws 2005, First Special Session chapter 5, article 1, section 54, subdivision 7, 
111.21 	is amended to read:
111.22 	Subd. 7.   Nonpublic pupil education aid. For nonpublic  pupil education aid under 
111.23 	Minnesota Statutes, sections 123B.87  and 123B.40 to 123B.43:

111.24
111.25		$
	15,370,000
15,458,000
	.....
	2006
	
111.26
111.27		$
	16,434,000
15,991,000
	.....
	2007
	
111.28 	The 2006 appropriation includes $2,305,000 $1,864,000 for 2005 and  $13,065,000 
111.29 	$13,594,000 for 2006.
111.30 	The 2007 appropriation includes $2,433,000 $1,510,000 for 2006 and  $14,001,000 
111.31 	$14,481,000 for 2007.

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

112.2 	Sec. 5. Laws 2005, First Special Session chapter 5, article 1, section 54, subdivision 8, 
112.3 	is amended to read:
112.4 	Subd. 8.  Nonpublic pupil transportation. For nonpublic  pupil transportation aid 
112.5 	under Minnesota Statutes, section  123B.92, subdivision 9:

112.6
112.7		$
	21,451,000
21,371,000
	.....
	2006
	
112.8
112.9		$
	23,043,000
20,843,000
	.....
	2007
	
112.10 	The 2006 appropriation includes $3,274,000 for 2005 and  $18,177,000 $18,097,000
112.11 	for 2006.
112.12 	The 2007 appropriation includes $3,385,000$2,010,000 for 2006 and  $19,658,000
112.13 	$18,833,000 for 2007.

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

112.15 	Sec. 6. Laws 2005, First Special Session chapter 5, article 2, section 84, subdivision 2, 
112.16 	is amended to read:
112.17 	Subd. 2.   Charter school building lease aid. For building  lease aid under Minnesota 
112.18 	Statutes, section 124D.11, subdivision  4:  

112.19
112.20		$
	25,465,000
25,331,000
	.....
	2006
	
112.21
112.22		$
	30,929,000
27,806,000
	.....
	2007
	
112.23 	The 2006 appropriation includes $3,324,000$3,173,000 for 2005 and  $22,141,000
112.24 	$22,158,000 for 2006.  
112.25 	The 2007 appropriation includes $4,123,000$2,462,000 for 2006 and  $26,806,000
112.26 	$25,344,000 for 2007.  

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

112.28 	Sec. 7. Laws 2005, First Special Session chapter 5, article 2, section 84, subdivision 4, 
112.29 	is amended to read:
113.1 	Subd. 4.   Integration aid. For integration aid under  Minnesota Statutes, section 
113.2 	124D.86, subdivision 5:  

113.3
113.4		$
	57,801,000
59,404,000
	.....
	2006
	
113.5
113.6		$
	57,536,000
58,405,000
	.....
	2007
	
113.7 	The 2006 appropriation includes $8,545,000 for 2005 and  $49,256,000$50,859,000 
113.8 	for 2006.  
113.9 	The 2007 appropriation includes $9,173,000$5,650,000 for 2006 and  $48,363,000
113.10 	$52,755,000 for 2007.  

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

113.12 	Sec. 8. Laws 2005, First Special Session chapter 5, article 2, section 84, subdivision 6, 
113.13 	is amended to read:
113.14 	Subd. 6.   Interdistrict desegregation or integration transportation grants. For 
113.15 	interdistrict desegregation or  integration transportation grants under Minnesota Statutes,  
113.16 	section 124D.87:  

113.17
113.18		$
	7,768,000
6,032,000
	.....
	2006
	
113.19
113.20		$
	9,908,000
10,134,000
	.....
	2007

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

113.22 	Sec. 9. Laws 2005, First Special Session chapter 5, article 2, section 84, subdivision 7, 
113.23 	is amended to read:
113.24 	Subd. 7.   Success for the future. For American Indian  success for the future grants 
113.25 	under Minnesota Statutes, section  124D.81:  

113.26
113.27		$
	2,137,000
2,240,000
	.....
	2006
	
113.28		$
	2,137,000
	.....
	2007
	
113.29 	The 2006 appropriation includes $335,000$316,000 for 2005 and  $1,802,000
113.30 	$1,924,000 for 2006.  
114.1 	The 2007 appropriation includes $335,000$213,000 for 2006 and  $1,802,000
114.2 	$1,924,000 for 2007.  

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

114.4 	Sec. 10. Laws 2005, First Special Session chapter 5, article 2, section 84, subdivision 
114.5 	10, is amended to read:
114.6 	Subd. 10.  Tribal contract schools. For tribal contract  school aid under Minnesota 
114.7 	Statutes, section 124D.83:  

114.8
114.9		$
	2,389,000
2,338,000
	.....
	2006
	
114.10
114.11		$
	2,603,000
2,357,000
	.....
	2007
	
114.12 	The 2006 appropriation includes $348,000 for 2005 and  $2,041,000$1,990,000
114.13 	for 2006.  
114.14 	The 2007 appropriation includes $380,000$221,000 for 2006 and  $2,223,000
114.15 	$2,136,000 for 2007.  

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

114.17 	Sec. 11. Laws 2005, First Special Session chapter 5, article 3, section 18, subdivision 
114.18 	2, is amended to read:
114.19 	Subd. 2.   Special education; regular. For special  education aid under Minnesota 
114.20 	Statutes, section 125A.75:  

114.21
114.22		$
	528,846,000
559,485,000
	.....
	2006
	
114.23
114.24		$
	527,446,000
528,106,000
	.....
	2007
	
114.25 	The 2006 appropriation includes $83,078,000 for 2005 and  $445,768,000
114.26 	$476,407,000 for 2006.  
114.27 	The 2007 appropriation includes $83,019,000$52,934,000 for 2006 and  
114.28 	$444,427,000$475,172,000 for 2007.  

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

115.1 	Sec. 12. Laws 2005, First Special Session chapter 5, article 3, section 18, subdivision 
115.2 	3, is amended to read:
115.3 	Subd. 3.  Aid for children with disabilities. For aid  under Minnesota Statutes, 
115.4 	section 125A.75, subdivision 3, for  children with disabilities placed in residential facilities  
115.5 	within the district boundaries for whom no district of residence  can be determined:  

115.6
115.7		$
	2,212,000
1,527,000
	.....
	2006
	
115.8
115.9		$
	2,615,000
1,624,000
	.....
	2007
	
115.10 	If the appropriation for either year is insufficient, the  appropriation for the other 
115.11 	year is available.  

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

115.13 	Sec. 13. Laws 2005, First Special Session chapter 5, article 3, section 18, subdivision 
115.14 	4, is amended to read:
115.15 	Subd. 4.  Travel for home-based services. For aid for  teacher travel for home-based 
115.16 	services under Minnesota Statutes,  section 125A.75, subdivision 1:  

115.17
115.18		$
	187,000
198,000
	.....
	2006
	
115.19		$
	195,000
	.....
	2007
	
115.20 	The 2006 appropriation includes $28,000 for 2005 and  $159,000$170,000 for 2006.  
115.21 	The 2007 appropriation includes $29,000$18,000 for 2006 and  $166,000$177,000
115.22 	for 2007.  

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

115.24 	Sec. 14. Laws 2005, First Special Session chapter 5, article 3, section 18, subdivision 
115.25 	5, is amended to read:
115.26 	Subd. 5.   Special education; excess costs. For excess  cost aid under Minnesota 
115.27 	Statutes, section 125A.79, subdivision  7:  

116.1
116.2		$
	102,083,000
106,453,000
	.....
	2006
	
116.3
116.4		$
	104,286,000
104,333,000
	.....
	2007
	
116.5 	The 2006 appropriation includes $37,455,000 for 2005 and  $64,628,000$68,998,000
116.6 	for 2006.  
116.7 	The 2007 appropriation includes $38,972,000$34,602,000 for 2006 and  $65,314,000
116.8 	$69,731,000 for 2007.  

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

116.10 	Sec. 15. Laws 2005, First Special Session chapter 5, article 3, section 18, subdivision 
116.11 	6, is amended to read:
116.12 	Subd. 6. Transition for disabled students. For aid for  transition programs for 
116.13 	children with disabilities under  Minnesota Statutes, section 124D.454:  

116.14
116.15		$
	8,788,000
9,300,000
	.....
	2006
	
116.16
116.17		$
	8,765,000
8,781,000
	.....
	2007
	
116.18 	The 2006 appropriation includes $1,380,000 for 2005 and  $7,408,000$7,920,000
116.19 	for 2006.  
116.20 	The 2007 appropriation includes $1,379,000$880,000 for 2006 and  $7,386,000
116.21 	$7,901,000 for 2007.  

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

116.23 	Sec. 16. Laws 2005, First Special Session chapter 5, article 3, section 18, subdivision 
116.24 	7, is amended to read:
116.25 	Subd. 7.  Court-placed special education revenue. For  reimbursing serving 
116.26 	school districts for unreimbursed eligible  expenditures attributable to children placed in 
116.27 	the serving  school district by court action under Minnesota Statutes,  section 125A.79, 
116.28 	subdivision 4:  

117.1
117.2		$
	65,000
46,000
	.....
	2006
	
117.3		$
	70,000
	.....
	2007

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

117.5 	Sec. 17. Laws 2005, First Special Session chapter 5, article 4, section 25, subdivision 
117.6 	2, is amended to read:
117.7 	Subd. 2.  Health and safety revenue. For health and  safety aid according to 
117.8 	Minnesota Statutes, section 123B.57,  subdivision 5:  

117.9117.10
		$
	802,000
823,000
	.....
	2006
	
117.11
117.12		$
	578,000
352,000
	.....
	2007
	
117.13 	The 2006 appropriation includes $211,000 for 2005 and  $591,000$612,000 for 2006.  
117.14 	The 2007 appropriation includes $109,000$68,000 for 2006 and  $469,000$284,000
117.15 	for 2007.  

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

117.17 	Sec. 18. Laws 2005, First Special Session chapter 5, article 4, section 25, subdivision 
117.18 	3, is amended to read:
117.19 	Subd. 3. Debt service equalization. For debt service aid  according to Minnesota 
117.20 	Statutes, section 123B.53, subdivision 6:  

117.21
117.22		$
	25,654,000
27,205,000
	.....
	2006
	
117.23
117.24		$
	24,134,000
18,411,000
	.....
	2007
	
117.25 	The 2006 appropriation includes $4,654,000 for 2005 and  $21,000,000$22,551,000
117.26 	for 2006.  
117.27 	The 2007 appropriation includes $3,911,000$2,505,000 for 2006 and  $20,223,000
117.28 	$15,906,000 for 2007.  

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

118.1 	Sec. 19. Laws 2005, First Special Session chapter 5, article 4, section 25, subdivision 
118.2 	4, is amended to read:
118.3 	Subd. 4.  Alternative facilities bonding aid. For  alternative facilities bonding aid, 
118.4 	according to Minnesota  Statutes, section 123B.59, subdivision 1:  

118.5
118.6		$
	19,287,000
20,387,000
	.....
	2006
	
118.7		$
	19,287,000
	.....
	2007
	
118.8 	The 2006 appropriation includes $3,028,000 for 2005 and  $16,259,000$17,359,000
118.9 	for 2006.  
118.10 	The 2007 appropriation includes $3,028,000$1,928,000 for 2006 and  $16,259,000
118.11 	$17,359,000 for 2007.  

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

118.13 	Sec. 20. Laws 2005, First Special Session chapter 5, article 5, section 17, subdivision 
118.14 	2, is amended to read:
118.15 	Subd. 2.  School lunch. For school lunch aid according to  Minnesota Statutes, 
118.16 	section 124D.111, and Code of Federal  Regulations, title 7, section 210.17:

118.17
118.18		$
	8,998,000
9,760,000
	.....
	2006
	
118.19
118.20		$
	9,076,000
9,896,000
	.....
	2007

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

118.22 	Sec. 21. Laws 2005, First Special Session chapter 5, article 5, section 17, subdivision 
118.23 	3, is amended to read:
118.24 	Subd. 3. Traditional school breakfast; kindergarten  milk. For traditional school 
118.25 	breakfast aid and kindergarten  milk under Minnesota Statutes, sections 124D.1158 and 
118.26 	124D.118:  

118.27
118.28		$
	4,878,000
4,856,000
	.....
	2006
	
118.29
118.30		$
	4,968,000
5,044,000
	.....
	2007

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

119.2 	Sec. 22. Laws 2005, First Special Session chapter 5, article 6, section 1, subdivision 2, 
119.3 	is amended to read:
119.4 	Subd. 2.   Basic system support. For basic system support  grants under Minnesota 
119.5 	Statutes, section 134.355:  

119.6
119.7		$
	8,570,000
9,058,000
	.....
	2006
	
119.8		$
	8,570,000
	.....
	2007
	
119.9 	The 2006 appropriation includes $1,345,000 for 2005 and  $7,225,000$7,713,000
119.10 	for 2006.  
119.11 	The 2007 appropriation includes $1,345,000$857,000 for 2006 and  $7,225,000
119.12 	$7,713,000 for 2007.  

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

119.14 	Sec. 23. Laws 2005, First Special Session chapter 5, article 6, section 1, subdivision 3, 
119.15 	is amended to read:
119.16 	Subd. 3.   Multicounty, multitype library systems. For  grants under Minnesota 
119.17 	Statutes, sections 134.353 and 134.354,  to multicounty, multitype library systems:  

119.18
119.19		$
	903,000
954,000
	.....
	2006
	
119.20		$
	903,000
	.....
	2007
	
119.21 	The 2006 appropriation includes $141,000 for 2005 and  $762,000$813,000 for 2006.  
119.22 	The 2007 appropriation includes $141,000$90,000 for 2006 and  $762,000$813,000
119.23 	for 2007.  

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

119.25 	Sec. 24. Laws 2005, First Special Session chapter 5, article 6, section 1, subdivision 5, 
119.26 	is amended to read:
119.27 	Subd. 5.  Regional library telecommunications aid. For  regional library 
119.28 	telecommunications aid under Minnesota  Statutes, section 134.355:  

120.1
120.2		$
	1,200,000
1,268,000
	.....
	2006
	
120.3		$
	1,200,000
	.....
	2007
	
120.4 	The 2006 appropriation includes $188,000 for 2005 and  $1,012,000$1,080,000
120.5 	for 2006.  
120.6 	The 2007 appropriation includes $188,000$120,000 for 2006 and  $1,012,000
120.7 	$1,080,000 for 2007.  

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

120.9 	Sec. 25. Laws 2005, First Special Session chapter 5, article 7, section 20, subdivision 
120.10 	2, is amended to read:
120.11 	Subd. 2.  School readiness. For revenue for school  readiness programs under 
120.12 	Minnesota Statutes, sections 124D.15  and 124D.16:  

120.13
120.14		$
	9,020,000
9,528,000
	.....
	2006
	
120.15
120.16		$
	9,042,000
9,020,000
	.....
	2007
	
120.17 	The 2006 appropriation includes $1,417,000$1,415,000 for 2005 and  $7,603,000
120.18 	$8,113,000 for 2006.  
120.19 	The 2007 appropriation includes $1,415,000$901,000 for 2006 and  $7,627,000
120.20 	$8,119,000 for 2007.  

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

120.22 	Sec. 26. Laws 2005, First Special Session chapter 5, article 7, section 20, subdivision 
120.23 	3, is amended to read:
120.24 	Subd. 3.  Early childhood family education aid. For early  childhood family 
120.25 	education aid under Minnesota Statutes, section  124D.135:  

120.26
120.27		$
	14,356,000
15,105,000
	.....
	2006
	
120.28
120.29		$
	15,137,000
15,112,000
	.....
	2007
	
121.1 	The 2006 appropriation includes $1,861,000$1,859,000 for 2005 and  $12,495,000
121.2 	$13,246,000 for 2006.  
121.3 	The 2007 appropriation includes $2,327,000$1,471,000 for 2006 and  $12,810,000
121.4 	$13,641,000 for 2007. 

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

121.6 	Sec. 27. Laws 2005, First Special Session chapter 5, article 7, section 20, subdivision 
121.7 	4, is amended to read:
121.8 	Subd. 4. Health and developmental screening aid. For  health and developmental 
121.9 	screening aid under Minnesota Statutes,  sections 121A.17 and 121A.19:  

121.10
121.11		$
	3,076,000
2,911,000
	.....
	2006
	
121.12
121.13		$
	3,511,000
2,943,000
	.....
	2007
	
121.14 	The 2006 appropriation includes $417,000 for 2005 and  $2,659,000$2,494,000
121.15 	for 2006.  
121.16 	The 2007 appropriation includes $494,000$277,000 for 2006 and  $3,017,000
121.17 	$2,666,000 for 2007.  

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

121.19 	Sec. 28. Laws 2005, First Special Session chapter 5, article 8, section 8, subdivision 2, 
121.20 	is amended to read:
121.21 	
121.22 	Subd. 2.  Community education aid. For community  education aid under 
121.23 	Minnesota Statutes, section 124D.20:  

121.24
121.25		$
	1,918,000
2,043,000
	.....
	2006
	
121.26
121.27		$
	1,837,000
1,949,000
	.....
	2007
	
121.28 	The 2006 appropriation includes $390,000$385,000 for 2005 and  $1,528,000
121.29 	$1,658,000 for 2006.  
121.30 	The 2007 appropriation includes $284,000$184,000 for 2006 and  $1,553,000
121.31 	$1,765,000 for 2007.

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

122.2 	Sec. 29. Laws 2005, First Special Session chapter 5, article 8, section 8, subdivision 3, 
122.3 	is amended to read:
122.4 	
122.5 	Subd. 3.  Adults with disabilities program aid. For  adults with disabilities 
122.6 	programs under Minnesota Statutes,  section 124D.56:  
122.7 	

122.8
122.9		$
	710,000
750,000
	.....
	2006
	
122.10		$
	710,000
	.....
	2007
	
122.11 	The 2006 appropriation includes $111,000 for 2005 and  $599,000$639,000 for 2006.  
122.12 	The 2007 appropriation includes $111,000$71,000 for 2006 and  $599,000$639,000
122.13 	for 2007.  

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

122.15 	Sec. 30. Laws 2005, First Special Session chapter 5, article 8, section 8, subdivision 5, 
122.16 	is amended to read:
122.17 	Subd. 5. School-age care revenue. For extended day aid  under Minnesota Statutes, 
122.18 	section 124D.22:  

122.19		$
	17,000
	.....
	2006
	
122.20		$
	7,0004,000
	.....
	2007
	
122.21 	The 2006 appropriation includes $4,000 for 2005 and $13,000  for 2006.  
122.22 	The 2007 appropriation includes $2,000$1,000 for 2006 and $5,000$3,000 for 2007.  
122.23 	

122.24 	Sec. 31. Laws 2005, First Special Session chapter 5, article 9, section 4, subdivision 2, 
122.25 	is amended to read:
122.26 	Subd. 2.   Adult basic education aid. For adult basic  education aid under Minnesota 
122.27 	Statutes, section 124D.531:  

123.1
123.2		$
	36,518,000
38,601,000
	.....
	2006
	
123.3
123.4		$
	36,540,000
36,539,000
	.....
	2007
	
123.5 	The 2006 appropriation includes $5,707,000 for 2005 and  $30,811,000$32,894,000
123.6 	for 2006.  
123.7 	The 2007 appropriation includes $5,737,000$3,654,000 for 2006 and  $30,803,000
123.8 	$32,885,000 for 2007. 

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

123.10 	ARTICLE 12
123.11 	TECHNICAL AND CONFORMING AMENDMENTS

123.12 	Section 1. Minnesota Statutes 2005 Supplement, section 120B.11, subdivision 2, is 
123.13 	amended to read:
123.14 		Subd. 2.Adopting policies. (a) A school board shall have in place an adopted 
123.15 	written policy that includes the following:
123.16 	(1) district goals for instruction including the use of best practices, district and 
123.17 	school curriculum, and achievement for all student subgroups;
123.18 	(2) a process for evaluating each student's progress toward meeting academic 
123.19 	standards and identifying the strengths and weaknesses of instruction and curriculum 
123.20 	affecting students' progress;
123.21 	(3) a system for periodically reviewing and evaluating all instruction and curriculum;
123.22 	(4) a plan for improving instruction, curriculum, and student achievement; and
123.23 	(5) an education effectiveness plan aligned with section 122A.625 that integrates 
123.24 	instruction, curriculum, and technology.

123.25 	Sec. 2. Minnesota Statutes 2004, section 121A.15, subdivision 10, is amended to read:
123.26 		Subd. 10.Requirements for immunization statements. (a) A statement required 
123.27 	to be submitted under subdivisions 1, 2, and 4 to document evidence of immunization 
123.28 	shall include month, day, and year for immunizations administered after January 1, 1990.
123.29 	(a) For persons enrolled in grades 7 and 12 during the 1996-1997 school term, the 
123.30 	statement must indicate that the person has received a dose of tetanus and diphtheria 
123.31 	toxoid no earlier than 11 years of age.
124.1 	(b) Except as specified in paragraph (e), for persons enrolled in grades 7, 8, and 12 
124.2 	during the 1997-1998 school term, the statement must indicate that the person has received 
124.3 	a dose of tetanus and diphtheria toxoid no earlier than 11 years of age.
124.4 	(c) Except as specified in paragraph (e), for persons enrolled in grades 7 through 
124.5 	12 during the 1998-1999 school term and for each year thereafter, the statement must 
124.6 	indicate that the person has received a dose of tetanus and diphtheria toxoid no earlier 
124.7 	than 11 years of age.
124.8 	(d) For persons enrolled in grades 7 through 12 during the 1996-1997 school year 
124.9 	and for each year thereafter, the statement must indicate that the person has received at 
124.10 	least two doses of vaccine against measles, mumps, and rubella, given alone or separately 
124.11 	and given not less than one month apart.
124.12 	(e)  (b) A person who has received at least three doses of tetanus and diphtheria 
124.13 	toxoids, with the most recent dose given after age six and before age 11, is not required to 
124.14 	have additional immunization against diphtheria and tetanus until ten years have elapsed 
124.15 	from the person's most recent dose of tetanus and diphtheria toxoid.
124.16 	(f)  (c) The requirement for hepatitis B vaccination shall apply to persons enrolling in 
124.17 	kindergarten beginning with the 2000-2001 school term.
124.18 	(g) (d) The requirement for hepatitis B vaccination shall apply to persons enrolling 
124.19 	in grade 7 beginning with the 2001-2002 school term.

124.20 	Sec. 3. Minnesota Statutes 2005 Supplement, section 123B.04, subdivision 2, is 
124.21 	amended to read:
124.22 		Subd. 2.Agreement. (a) Upon the request of 60 percent of the licensed employees 
124.23 	of a site or a school site decision-making team, the school board shall enter into 
124.24 	discussions to reach an agreement concerning the governance, management, or control of 
124.25 	the school. A school site decision-making team may include the school principal, teachers 
124.26 	in the school or their designee, other employees in the school, representatives of pupils 
124.27 	in the school, or other members in the community. A school site decision-making team 
124.28 	must include at least one parent of a pupil in the school. For purposes of formation of a 
124.29 	new site, a school site decision-making team may be a team of teachers that is recognized 
124.30 	by the board as a site. The school site decision-making team shall include the school 
124.31 	principal or other person having general control and supervision of the school. The site 
124.32 	decision-making team must reflect the diversity of the education site. At least one-half 
124.33 	of the members shall be employees of the district, unless an employee is the parent of a 
124.34 	student enrolled in the school site, in which case the employee may elect to serve as a 
124.35 	parent member of the site team.
125.1 	(b) School site decision-making agreements must delegate powers, duties, and 
125.2 	broad management responsibilities to site teams and involve staff members, students as 
125.3 	appropriate, and parents in decision making.
125.4 	(c) An agreement shall include a statement of powers, duties, responsibilities, and 
125.5 	authority to be delegated to and within the site.
125.6 	(d) An agreement may include:
125.7 	(1) an achievement contract according to subdivision 4;
125.8 	(2) a mechanism to allow principals, a site leadership team, or other persons having 
125.9 	general control and supervision of the school, to make decisions regarding how financial 
125.10 	and personnel resources are best allocated at the site and from whom goods or services 
125.11 	are purchased;
125.12 	(3) a mechanism to implement parental involvement programs under section 
125.13 	124D.895 and to provide for effective parental communication and feedback on this 
125.14 	involvement at the site level;
125.15 	(4) a provision that would allow the team to determine who is hired into licensed 
125.16 	and nonlicensed positions;
125.17 	(5) a provision that would allow teachers to choose the principal or other person 
125.18 	having general control;
125.19 	(6) an amount of revenue allocated to the site under subdivision 3; and
125.20 	(7) any other powers and duties determined appropriate by the board.
125.21 	The school board of the district remains the legal employer under clauses (4) and (5).
125.22 	(e) Any powers or duties not delegated to the school site management team in the 
125.23 	school site management agreement shall remain with the school board.
125.24 	(f) Approved agreements shall be filed with the commissioner. If a school board 
125.25 	denies a request or the school site and school board fail to reach an agreement to enter 
125.26 	into a school site management agreement, the school board shall provide a copy of the 
125.27 	request and the reasons for its denial to the commissioner.
125.28 	(g) A site decision-making grant program is established, consistent with this 
125.29 	subdivision, to allow sites to implement an agreement that at least:
125.30 	(1) notwithstanding subdivision 3, allocates to the site all revenue that is attributable 
125.31 	to the students at that site;
125.32 	(2) includes a provision, consistent with current law and the collective bargaining 
125.33 	agreement in effect, that allows the site team to decide who is selected from within the 
125.34 	district for licensed and nonlicensed positions at the site and to make staff assignments 
125.35 	in the site; and
125.36 	(3) includes a completed performance agreement under subdivision 4.
126.1 	The commissioner shall establish the form and manner of the application for a grant 
126.2 	and annually, at the end of each fiscal year, report to the house of representatives and 
126.3 	senate committees having jurisdiction over education on the progress of the program.

126.4 	Sec. 4. Minnesota Statutes 2004, section 125A.62, subdivision 1, is amended to read:
126.5 		Subdivision 1.Governance. The board of the Minnesota State Academies shall 
126.6 	govern the State Academies Academy for the Deaf and the State Academy for the Blind. 
126.7 	The board must promote academic standards based on high expectation and an assessment 
126.8 	system to measure academic performance toward the achievement of those standards. The 
126.9 	board must focus on the academies' needs as a whole and not prefer one school over the 
126.10 	other. The board of the Minnesota State Academies shall consist of nine persons. The 
126.11 	members of the board shall be appointed by the governor with the advice and consent of 
126.12 	the senate. One member must be from the seven-county metropolitan area, one member 
126.13 	must be from greater Minnesota, and one member may be appointed at-large. The board 
126.14 	must be composed of:
126.15 	(1) one present or former superintendent of an independent school district;
126.16 	(2) one present or former special education director;
126.17 	(3) the commissioner of education or the commissioner's designee;
126.18 	(4) one member of the blind community;
126.19 	(5) one member of the deaf community;
126.20 	(6) two members of the general public with business, administrative, or financial 
126.21 	expertise;
126.22 	(7) one nonvoting, unpaid ex officio member appointed by the site council for the 
126.23 	State Academy for the Deaf; and
126.24 	(8) one nonvoting, unpaid ex officio member appointed by the site council for the 
126.25 	State Academy for the Blind.

126.26 	Sec. 5. Minnesota Statutes 2005 Supplement, section 126C.10, subdivision 24, is 
126.27 	amended to read:
126.28 		Subd. 24.Equity revenue. (a) A school district qualifies for equity revenue if:
126.29 	(1) the school district's adjusted marginal cost pupil unit amount of basic revenue, 
126.30 	supplemental revenue, transition revenue, and referendum revenue is less than the value of 
126.31 	the school district at or immediately above the 95th percentile of school districts in its 
126.32 	equity region for those revenue categories; and
126.33 	(2) the school district's administrative offices are not located in a city of the first 
126.34 	class on July 1, 1999.
127.1 	(b) Equity revenue for a qualifying district that receives referendum revenue under 
127.2 	section 126C.17, subdivision 4, equals the product of (1) the district's adjusted marginal 
127.3 	cost pupil units for that year; times (2) the sum of (i) $13, plus (ii) $75, times the school 
127.4 	district's equity index computed under subdivision 27.
127.5 	(c) Equity revenue for a qualifying district that does not receive referendum revenue 
127.6 	under section 126C.17, subdivision 4, equals the product of the district's adjusted marginal 
127.7 	cost pupil units for that year times $13.
127.8 	(d) A school district's equity revenue is increased by the greater of zero or an amount 
127.9 	equal to the district's resident marginal cost pupil units times the difference between ten 
127.10 	percent of the statewide average amount of referendum revenue per resident marginal cost 
127.11 	pupil unit for that year and the district's referendum revenue per resident marginal cost 
127.12 	pupil unit. A school district's revenue under this paragraph must not exceed $100,000 for 
127.13 	that year.
127.14 	(e) A school district's equity revenue for a school district located in the metro equity 
127.15 	region equals the amount computed in paragraphs (b), (c), and (d) multiplied by 1.25.
127.16 	(f) For fiscal year 2007 and later, notwithstanding paragraph (a), clause (2), a school 
127.17 	district that has per pupil referendum revenue below the 95th percentile qualifies for 
127.18 	additional equity revenue equal to $46 times its adjusted marginal cost pupil unit.
127.19 	(g) A district that does not qualify for revenue under paragraph (f) qualifies for 
127.20 	equity revenue equal to one-half of the per pupil allowance in paragraph (f) times its 
127.21 	adjusted marginal cost pupil units.

127.22 	Sec. 6. Minnesota Statutes 2005 Supplement, section 626.556, subdivision 2, is 
127.23 	amended to read:
127.24 		Subd. 2.Definitions. As used in this section, the following terms have the meanings 
127.25 	given them unless the specific content indicates otherwise:
127.26 	(a) "Family assessment" means a comprehensive assessment of child safety, risk 
127.27 	of subsequent child maltreatment, and family strengths and needs that is applied to a 
127.28 	child maltreatment report that does not allege substantial child endangerment. Family 
127.29 	assessment does not include a determination as to whether child maltreatment occurred 
127.30 	but does determine the need for services to address the safety of family members and the 
127.31 	risk of subsequent maltreatment.
127.32 	(b) "Investigation" means fact gathering related to the current safety of a child 
127.33 	and the risk of subsequent maltreatment that determines whether child maltreatment 
127.34 	occurred and whether child protective services are needed. An investigation must be used 
127.35 	when reports involve substantial child endangerment, and for reports of maltreatment in 
128.1 	facilities required to be licensed under chapter 245A or 245B; under sections 144.50 to 
128.2 	144.58 and 241.021; in a school as defined in sections 120A.05, subdivisions 9, 11, and 
128.3 	13, and 124D.10; or in a nonlicensed personal care provider association as defined in 
128.4 	sections 256B.04, subdivision 16, and 256B.0625, subdivision 19a.
128.5 	(c) "Substantial child endangerment" means a person responsible for a child's care, a 
128.6 	person who has a significant relationship to the child as defined in section 609.341, or a 
128.7 	person in a position of authority as defined in section 609.341, who by act or omission 
128.8 	commits or attempts to commit an act against a child under their care that constitutes 
128.9 	any of the following:
128.10 	(1) egregious harm as defined in section 260C.007, subdivision 14;
128.11 	(2) sexual abuse as defined in paragraph (d);
128.12 	(3) abandonment under section 260C.301, subdivision 2;
128.13 	(4) neglect as defined in paragraph (f), clause (2), that substantially endangers the 
128.14 	child's physical or mental health, including a growth delay, which may be referred to as 
128.15 	failure to thrive, that has been diagnosed by a physician and is due to parental neglect;
128.16 	(5) murder in the first, second, or third degree under section 609.185, 609.19, or 
128.17 	609.195;
128.18 	(6) manslaughter in the first or second degree under section 609.20 or 609.205;
128.19 	(7) assault in the first, second, or third degree under section 609.221, 609.222, or 
128.20 	609.223;
128.21 	(8) solicitation, inducement, and promotion of prostitution under section 609.322;
128.22 	(9) criminal sexual conduct under sections 609.342 to 609.3451;
128.23 	(10) solicitation of children to engage in sexual conduct under section 609.352;
128.24 	(11) malicious punishment or neglect or endangerment of a child under section 
128.25 	609.377 or 609.378;
128.26 	(12) use of a minor in sexual performance under section 617.246; or
128.27 	(13) parental behavior, status, or condition which mandates that the county attorney 
128.28 	file a termination of parental rights petition under section 260C.301, subdivision 3, 
128.29 	paragraph (a).
128.30 	(d) "Sexual abuse" means the subjection of a child by a person responsible for the 
128.31 	child's care, by a person who has a significant relationship to the child, as defined in 
128.32 	section 609.341, or by a person in a position of authority, as defined in section 609.341, 
128.33 	subdivision 10, to any act which constitutes a violation of section 609.342 (criminal sexual 
128.34 	conduct in the first degree), 609.343 (criminal sexual conduct in the second degree), 
128.35 	609.344 (criminal sexual conduct in the third degree), 609.345 (criminal sexual conduct 
128.36 	in the fourth degree), or 609.3451 (criminal sexual conduct in the fifth degree). Sexual 
129.1 	abuse also includes any act which involves a minor which constitutes a violation of 
129.2 	prostitution offenses under sections 609.321 to 609.324 or 617.246. Sexual abuse includes 
129.3 	threatened sexual abuse.
129.4 	(e) "Person responsible for the child's care" means (1) an individual functioning 
129.5 	within the family unit and having responsibilities for the care of the child such as a 
129.6 	parent, guardian, or other person having similar care responsibilities, or (2) an individual 
129.7 	functioning outside the family unit and having responsibilities for the care of the child 
129.8 	such as a teacher, school administrator, other school employees or agents, or other lawful 
129.9 	custodian of a child having either full-time or short-term care responsibilities including, 
129.10 	but not limited to, day care, babysitting whether paid or unpaid, counseling, teaching, 
129.11 	and coaching.
129.12 	(f) "Neglect" means:
129.13 	(1) failure by a person responsible for a child's care to supply a child with necessary 
129.14 	food, clothing, shelter, health, medical, or other care required for the child's physical or 
129.15 	mental health when reasonably able to do so;
129.16 	(2) failure to protect a child from conditions or actions that seriously endanger the 
129.17 	child's physical or mental health when reasonably able to do so, including a growth delay, 
129.18 	which may be referred to as a failure to thrive, that has been diagnosed by a physician and 
129.19 	is due to parental neglect;
129.20 	(3) failure to provide for necessary supervision or child care arrangements 
129.21 	appropriate for a child after considering factors as the child's age, mental ability, physical 
129.22 	condition, length of absence, or environment, when the child is unable to care for the 
129.23 	child's own basic needs or safety, or the basic needs or safety of another child in their care;
129.24 	(4) failure to ensure that the child is educated as defined in sections 120A.22 and 
129.25 	260C.163, subdivision 11, which does not include a parent's refusal to provide the parent's 
129.26 	child with sympathomimetic medications, consistent with section 125A.091, subdivision 5;
129.27 	(5) nothing in this section shall be construed to mean that a child is neglected solely 
129.28 	because the child's parent, guardian, or other person responsible for the child's care in 
129.29 	good faith selects and depends upon spiritual means or prayer for treatment or care of 
129.30 	disease or remedial care of the child in lieu of medical care; except that a parent, guardian, 
129.31 	or caretaker, or a person mandated to report pursuant to subdivision 3, has a duty to report 
129.32 	if a lack of medical care may cause serious danger to the child's health. This section does 
129.33 	not impose upon persons, not otherwise legally responsible for providing a child with 
129.34 	necessary food, clothing, shelter, education, or medical care, a duty to provide that care;
129.35 	(6) prenatal exposure to a controlled substance, as defined in section 253B.02, 
129.36 	subdivision 2, used by the mother for a nonmedical purpose, as evidenced by withdrawal 
130.1 	symptoms in the child at birth, results of a toxicology test performed on the mother at 
130.2 	delivery or the child at birth, or medical effects or developmental delays during the child's 
130.3 	first year of life that medically indicate prenatal exposure to a controlled substance;
130.4 	(7) "medical neglect" as defined in section 260C.007, subdivision 6, clause (5);
130.5 	(8) chronic and severe use of alcohol or a controlled substance by a parent or 
130.6 	person responsible for the care of the child that adversely affects the child's basic needs 
130.7 	and safety; or
130.8 	(9) emotional harm from a pattern of behavior which contributes to impaired 
130.9 	emotional functioning of the child which may be demonstrated by a substantial and 
130.10 	observable effect in the child's behavior, emotional response, or cognition that is not 
130.11 	within the normal range for the child's age and stage of development, with due regard to 
130.12 	the child's culture.
130.13 	(g) "Physical abuse" means any physical injury, mental injury, or threatened injury, 
130.14 	inflicted by a person responsible for the child's care on a child other than by accidental 
130.15 	means, or any physical or mental injury that cannot reasonably be explained by the child's 
130.16 	history of injuries, or any aversive or deprivation procedures, or regulated interventions, 
130.17 	that have not been authorized under section 121A.67 or 245.825. Abuse does not include 
130.18 	reasonable and moderate physical discipline of a child administered by a parent or legal 
130.19 	guardian which does not result in an injury. Abuse does not include the use of reasonable 
130.20 	force by a teacher, principal, or school employee as allowed by section 121A.582. Actions 
130.21 	which are not reasonable and moderate include, but are not limited to, any of the following 
130.22 	that are done in anger or without regard to the safety of the child:
130.23 	(1) throwing, kicking, burning, biting, or cutting a child;
130.24 	(2) striking a child with a closed fist;
130.25 	(3) shaking a child under age three;
130.26 	(4) striking or other actions which result in any nonaccidental injury to a child 
130.27 	under 18 months of age;
130.28 	(5) unreasonable interference with a child's breathing;
130.29 	(6) threatening a child with a weapon, as defined in section 609.02, subdivision 6;
130.30 	(7) striking a child under age one on the face or head;
130.31 	(8) purposely giving a child poison, alcohol, or dangerous, harmful, or controlled 
130.32 	substances which were not prescribed for the child by a practitioner, in order to control 
130.33 	or punish the child; or other substances that substantially affect the child's behavior, 
130.34 	motor coordination, or judgment or that results in sickness or internal injury, or subjects 
130.35 	the child to medical procedures that would be unnecessary if the child were not exposed 
130.36 	to the substances;
131.1 	(9) unreasonable physical confinement or restraint not permitted under section 
131.2 	609.379, including but not limited to tying, caging, or chaining; or
131.3 	(10) in a school facility or school zone, an act by a person responsible for the child's 
131.4 	care that is a violation under section 121A.58.
131.5 	(h) "Report" means any report received by the local welfare agency, police 
131.6 	department, county sheriff, or agency responsible for assessing or investigating 
131.7 	maltreatment pursuant to this section.
131.8 	(i) "Facility" means:
131.9 	(1) a licensed or unlicensed day care facility, residential facility, agency, hospital, 
131.10 	sanitarium, or other facility or institution required to be licensed under sections 144.50 to 
131.11 	144.58, 241.021, or 245A.01 to 245A.16, or chapter 245B; or
131.12 	(2) a school as defined in sections 120A.05, subdivisions 9, 11, and 13; and 
131.13 	124D.10; or 
131.14 	(3) a nonlicensed personal care provider organization as defined in sections 256B.04, 
131.15 	subdivision 16, and 256B.0625, subdivision 19a.
131.16 	(j) "Operator" means an operator or agency as defined in section 245A.02.
131.17 	(k) "Commissioner" means the commissioner of human services.
131.18 	(l) "Practice of social services," for the purposes of subdivision 3, includes but is 
131.19 	not limited to employee assistance counseling and the provision of guardian ad litem and 
131.20 	parenting time expeditor services.
131.21 	(m) "Mental injury" means an injury to the psychological capacity or emotional 
131.22 	stability of a child as evidenced by an observable or substantial impairment in the child's 
131.23 	ability to function within a normal range of performance and behavior with due regard to 
131.24 	the child's culture.
131.25 	(n) "Threatened injury" means a statement, overt act, condition, or status that 
131.26 	represents a substantial risk of physical or sexual abuse or mental injury. Threatened 
131.27 	injury includes, but is not limited to, exposing a child to a person responsible for the 
131.28 	child's care, as defined in paragraph (e), clause (1), who has:
131.29 	(1) subjected a child to, or failed to protect a child from, an overt act or condition 
131.30 	that constitutes egregious harm, as defined in section 260C.007, subdivision 14, or a 
131.31 	similar law of another jurisdiction;
131.32 	(2) been found to be palpably unfit under section 260C.301, paragraph (b), clause 
131.33 	(4), or a similar law of another jurisdiction;
131.34 	(3) committed an act that has resulted in an involuntary termination of parental rights 
131.35 	under section 260C.301, or a similar law of another jurisdiction; or
132.1 	(4) committed an act that has resulted in the involuntary transfer of permanent legal 
132.2 	and physical custody of a child to a relative under section 260C.201, subdivision 11, 
132.3 	paragraph (d), clause (1), or a similar law of another jurisdiction.
132.4 	(o) Persons who conduct assessments or investigations under this section shall take 
132.5 	into account accepted child-rearing practices of the culture in which a child participates 
132.6 	and accepted teacher discipline practices, which are not injurious to the child's health, 
132.7 	welfare, and safety.