1.1 	A bill for an act
1.2 	relating to education; providing all-day, everyday kindergarten; permitting 
1.3 	transitional tuition;amending Minnesota Statutes 2004, sections 120A.22, 
1.4 	subdivision 5; 123B.41, subdivision 7; 124D.081, subdivisions 4, 6; 126C.05, 
1.5 	subdivisions 1, 15; 126C.12, subdivisions 1, 5; 126C.126; Minnesota Statutes 
1.6 	2005 Supplement, section 123B.92, subdivision 1.
1.7 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.8 	Section 1. Minnesota Statutes 2004, section 120A.22, subdivision 5, is amended to 
1.9 	read:
1.10 		Subd. 5.Ages and terms. (a) Every child between seven and 16 years of age must 
1.11 	receive instruction. Every child under the age of seven who is enrolled in a half-day 
1.12 	kindergarten, or a full-day kindergarten program on alternate days, or other kindergarten 
1.13 	programs shall receive instruction. Except as provided in subdivision 6, a parent may 
1.14 	withdraw a child under the age of seven from enrollment at any time.
1.15 	(b) A school district by annual board action may require children subject to this 
1.16 	subdivision to receive instruction in summer school. A district that acts to require children 
1.17 	to receive instruction in summer school shall establish at the time of its action the criteria 
1.18 	for determining which children must receive instruction.

1.19 	Sec. 2. Minnesota Statutes 2004, section 123B.41, subdivision 7, is amended to read:
1.20 		Subd. 7.Elementary pupils. "Elementary pupils" means pupils in grades 
1.21 	kindergarten through 6; provided, each kindergarten pupil shall be counted as one-half 
1.22 	pupil for all computations pursuant to sections  123B.40 to  123B.42, and  123B.44 to 
1.23 	123B.48. 

1.24 	EFFECTIVE DATE. This section is effective September 1, 2007.

2.1 	Sec. 3. Minnesota Statutes 2005 Supplement, section 123B.92, subdivision 1, is 
2.2 	amended to read:
2.3 		Subdivision 1.Definitions. For purposes of this section and section 125A.76, the 
2.4 	terms defined in this subdivision have the meanings given to them.
2.5 	(a) "Actual expenditure per pupil transported in the regular and excess transportation 
2.6 	categories" means the quotient obtained by dividing:
2.7 	(1) the sum of:
2.8 	(i) all expenditures for transportation in the regular category, as defined in paragraph 
2.9 	(b), clause (1), and the excess category, as defined in paragraph (b), clause (2), plus
2.10 	(ii) an amount equal to one year's depreciation on the district's school bus fleet 
2.11 	and mobile units computed on a straight line basis at the rate of 15 percent per year for 
2.12 	districts operating a program under section 124D.128 for grades 1 to 12 for all students in 
2.13 	the district and 12-1/2 percent per year for other districts of the cost of the fleet, plus
2.14 	(iii) an amount equal to one year's depreciation on the district's type three school 
2.15 	buses, as defined in section 169.01, subdivision 6, clause (5), which must be used a 
2.16 	majority of the time for pupil transportation purposes, computed on a straight line basis at 
2.17 	the rate of 20 percent per year of the cost of the type three school buses by:
2.18 	(2) the number of pupils eligible for transportation in the regular category, as defined 
2.19 	in paragraph (b), clause (1), and the excess category, as defined in paragraph (b), clause (2).
2.20 	(b) "Transportation category" means a category of transportation service provided to 
2.21 	pupils as follows:
2.22 	(1) Regular transportation is:
2.23 	(i) transportation to and from school during the regular school year for resident 
2.24 	elementary pupils residing one mile or more from the public or nonpublic school they 
2.25 	attend, and resident secondary pupils residing two miles or more from the public 
2.26 	or nonpublic school they attend, excluding desegregation transportation and noon 
2.27 	kindergarten transportation; but with respect to transportation of pupils to and from 
2.28 	nonpublic schools, only to the extent permitted by sections 123B.84 to 123B.87;
2.29 	(ii) transportation of resident pupils to and from language immersion programs;
2.30 	(iii) transportation of a pupil who is a custodial parent and that pupil's child between 
2.31 	the pupil's home and the child care provider and between the provider and the school, if 
2.32 	the home and provider are within the attendance area of the school;
2.33 	(iv) transportation to and from or board and lodging in another district, of resident 
2.34 	pupils of a district without a secondary school; and
2.35 	(v) transportation to and from school during the regular school year required under 
2.36 	subdivision 3 for nonresident elementary pupils when the distance from the attendance 
3.1 	area border to the public school is one mile or more, and for nonresident secondary pupils 
3.2 	when the distance from the attendance area border to the public school is two miles or 
3.3 	more, excluding desegregation transportation and noon kindergarten transportation.
3.4 	For the purposes of this paragraph, a district may designate a licensed day care 
3.5 	facility, respite care facility, the residence of a relative, or the residence of a person chosen 
3.6 	by the pupil's parent or guardian as the home of a pupil for part or all of the day, if 
3.7 	requested by the pupil's parent or guardian, and if that facility or residence is within the 
3.8 	attendance area of the school the pupil attends.
3.9 	(2) Excess transportation is:
3.10 	(i) transportation to and from school during the regular school year for resident 
3.11 	secondary pupils residing at least one mile but less than two miles from the public or 
3.12 	nonpublic school they attend, and transportation to and from school for resident pupils 
3.13 	residing less than one mile from school who are transported because of extraordinary 
3.14 	traffic, drug, or crime hazards; and
3.15 	(ii) transportation to and from school during the regular school year required under 
3.16 	subdivision 3 for nonresident secondary pupils when the distance from the attendance area 
3.17 	border to the school is at least one mile but less than two miles from the public school 
3.18 	they attend, and for nonresident pupils when the distance from the attendance area border 
3.19 	to the school is less than one mile from the school and who are transported because of 
3.20 	extraordinary traffic, drug, or crime hazards.
3.21 	(3) Desegregation transportation is transportation within and outside of the district 
3.22 	during the regular school year of pupils to and from schools located outside their normal 
3.23 	attendance areas under a plan for desegregation mandated by the commissioner or under 
3.24 	court order.
3.25 	(4) "Transportation services for pupils with disabilities" is:
3.26 	(i) transportation of pupils with disabilities who cannot be transported on a regular 
3.27 	school bus between home or a respite care facility and school;
3.28 	(ii) necessary transportation of pupils with disabilities from home or from school to 
3.29 	other buildings, including centers such as developmental achievement centers, hospitals, 
3.30 	and treatment centers where special instruction or services required by sections 125A.03
3.31 	to 125A.24, 125A.26 to 125A.48, and 125A.65 are provided, within or outside the district 
3.32 	where services are provided;
3.33 	(iii) necessary transportation for resident pupils with disabilities required by sections 
3.34 	125A.12, and 125A.26 to 125A.48;
3.35 	(iv) board and lodging for pupils with disabilities in a district maintaining special 
3.36 	classes;
4.1 	(v) transportation from one educational facility to another within the district for 
4.2 	resident pupils enrolled on a shared-time basis in educational programs, and necessary 
4.3 	transportation required by sections 125A.18, and 125A.26 to 125A.48, for resident pupils 
4.4 	with disabilities who are provided special instruction and services on a shared-time basis 
4.5 	or if resident pupils are not transported, the costs of necessary travel between public 
4.6 	and private schools or neutral instructional sites by essential personnel employed by the 
4.7 	district's program for children with a disability;
4.8 	(vi) transportation for resident pupils with disabilities to and from board and lodging 
4.9 	facilities when the pupil is boarded and lodged for educational purposes; and
4.10 	(vii) services described in clauses (i) to (vi), when provided for pupils with 
4.11 	disabilities in conjunction with a summer instructional program that relates to the pupil's 
4.12 	individual education plan or in conjunction with a learning year program established 
4.13 	under section 124D.128.
4.14 	For purposes of computing special education base revenue under section 125A.76, 
4.15 	subdivision 2, the cost of providing transportation for children with disabilities includes 
4.16 	(A) the additional cost of transporting a homeless student from a temporary nonshelter 
4.17 	home in another district to the school of origin, or a formerly homeless student from a 
4.18 	permanent home in another district to the school of origin but only through the end of the 
4.19 	academic year; and (B) depreciation on district-owned school buses purchased after July 1, 
4.20 	2005, and used primarily for transportation of pupils with disabilities, calculated according 
4.21 	to paragraph (a), clauses (ii) and (iii). Depreciation costs included in the disabled 
4.22 	transportation category must be excluded in calculating the actual expenditure per pupil 
4.23 	transported in the regular and excess transportation categories according to paragraph (a).
4.24 	(5) "Nonpublic nonregular transportation" is:
4.25 	(i) transportation from one educational facility to another within the district for 
4.26 	resident pupils enrolled on a shared-time basis in educational programs, excluding 
4.27 	transportation for nonpublic pupils with disabilities under clause (4);
4.28 	(ii) transportation within district boundaries between a nonpublic school and a 
4.29 	public school or a neutral site for nonpublic school pupils who are provided pupil support 
4.30 	services pursuant to section 123B.44; and
4.31 	(iii) late transportation home from school or between schools within a district for 
4.32 	nonpublic school pupils involved in after-school activities.
4.33 	(c) "Mobile unit" means a vehicle or trailer designed to provide facilities for 
4.34 	educational programs and services, including diagnostic testing, guidance and counseling 
4.35 	services, and health services. A mobile unit located off nonpublic school premises is a 
4.36 	neutral site as defined in section 123B.41, subdivision 13.

5.1 	EFFECTIVE DATE. This section is effective September 1, 2007.

5.2 	Sec. 4. Minnesota Statutes 2004, section 124D.081, subdivision 4, is amended to read:
5.3 		Subd. 4.Program. A qualifying school site must develop its first-grade 
5.4 	preparedness program in collaboration with other providers of school readiness and 
5.5 	child development services. A school site must offer a full-day kindergarten program to 
5.6 	participating children who are five years of age or older for the full school day every 
5.7 	day, and may offer a program for participating children who are four years old, or a 
5.8 	combination of both. The program may offer as an option to families home visits and other 
5.9 	practices as appropriate, and may provide such services with the consent of the parent or 
5.10 	guardian. Program providers must ensure that the program supplements existing school 
5.11 	readiness and child development programs and complements the services provided with 
5.12 	compensatory revenue. Where possible, individuals receiving assistance under a family 
5.13 	assistance plan can meet the work activity requirement of the plan by participating in a 
5.14 	first-grade preparedness program as a volunteer.

5.15 	EFFECTIVE DATE. This section is effective September 1, 2007.

5.16 	Sec. 5. Minnesota Statutes 2004, section 124D.081, subdivision 6, is amended to read:
5.17 		Subd. 6.Preparedness revenue. (a) A qualifying school district is eligible for 
5.18 	first-grade preparedness revenue equal to the basic formula allowance for that year times 
5.19 	the number of children five years of age or older enrolled in a kindergarten program 
5.20 	at the site on October 1 of the previous year times .53. Kindergarten programs under 
5.21 	subdivision 4 shall be fully funded by fiscal year 2017. A district may establish tuition 
5.22 	for such programs for fiscal years 2008 to 2017. In any fiscal year, such tuition may not 
5.23 	exceed the difference between full funding and the funding level for that fiscal year. A 
5.24 	district may reduce or waive such tuition in cases of financial hardship.
5.25 	(b) This revenue must supplement and not replace compensatory revenue that the 
5.26 	district uses for the same or similar purposes under chapters 120B, 123A, 123B, 124D, 
5.27 	126C, and 127A.
5.28 	(c) A pupil enrolled in the first grade preparedness program at a qualifying school 
5.29 	site is eligible for transportation under section  123B.88, subdivision 1. 
5.30 	(d) First grade preparedness revenue paid to a charter school for which a school 
5.31 	district is providing transportation according to section  124D.10, subdivision 16, shall 
5.32 	be decreased by an amount equal to the product of the formula allowance according to 
5.33 	section  126C.10, subdivision 2, times .0485 times the pupil units calculated according to 
5.34 	paragraph (a). This amount shall be paid to the school district for transportation costs. 

6.1 	Sec. 6. Minnesota Statutes 2004, section 126C.05, subdivision 1, is amended to read:
6.2 		Subdivision 1.Pupil unit. Pupil units for each Minnesota resident pupil in average 
6.3 	daily membership enrolled in the district of residence, in another district under sections  
6.4 	123A.05 to  123A.08,  124D.03,  124D.06,  124D.07,  124D.08, or  124D.68; in a charter 
6.5 	school under section  124D.10; or for whom the resident district pays tuition under section  
6.6 	123A.18,  123A.22,  123A.30,  123A.32,  123A.44,  123A.488,  123B.88, subdivision 
6.7 	4,  124D.04,  124D.05,  125A.03 to  125A.24,  125A.51, or  125A.65, shall be counted 
6.8 	according to this subdivision. 
6.9 	(a) A prekindergarten pupil with a disability who is enrolled in a program approved 
6.10 	by the commissioner and has an individual education plan is counted as the ratio of the 
6.11 	number of hours of assessment and education service to 825 times  1.25 with a minimum 
6.12 	average daily membership of 0.28, but not more than  1.25 pupil units. 
6.13 	(b) A prekindergarten pupil who is assessed but determined not to be handicapped is 
6.14 	counted as the ratio of the number of hours of assessment service to 825 times  1.25. 
6.15 	(c) A kindergarten pupil with a disability who is enrolled in a program approved 
6.16 	by the commissioner is counted as the ratio of the number of hours of assessment and 
6.17 	education services required in the fiscal year by the pupil's individual education program 
6.18 	plan to 875, but not more than one.
6.19 	(d) A kindergarten pupil who is not included in paragraph (c) is counted as .557 of a 
6.20 	pupil unit for fiscal year years 2000 and thereafter to 2006. Such pupils are counted as 
6.21 	.0558 of a pupil unit more than in the previous fiscal year for fiscal years 2007 to 2016 
6.22 	and as 1.115 pupil units for fiscal year 2017 and thereafter.
6.23 	(e) A pupil who is in any of grades 1 to 3 is counted as  1.115 pupil units for fiscal 
6.24 	year 2000 and thereafter. 
6.25 	(f) A pupil who is any of grades 4 to 6 is counted as  1.06 pupil units for fiscal 
6.26 	year 1995 and thereafter. 
6.27 	(g) A pupil who is in any of grades 7 to 12 is counted as 1.3 pupil units.
6.28 	(h) A pupil who is in the postsecondary enrollment options program is counted 
6.29 	as 1.3 pupil units.

6.30 	Sec. 7. Minnesota Statutes 2004, section 126C.05, subdivision 15, is amended to read:
6.31 		Subd. 15.Learning year pupil units. (a) When a pupil is enrolled in a learning 
6.32 	year program under section  124D.128, an area learning center under sections  123A.05
6.33 	and  123A.06, an alternative program approved by the commissioner, or a contract 
6.34 	alternative program under section  124D.68, subdivision 3, paragraph (d), or subdivision 
6.35 	3a, for more than 1,020 hours in a school year for a secondary student, more than 935 
7.1 	hours in a school year for an elementary student, or more than 425 hours in a school year 
7.2 	for a kindergarten student without a disability, that pupil may be counted as more than 
7.3 	one pupil in average daily membership for purposes of section  126C.10, subdivision 2a. 
7.4 	The amount in excess of one pupil must be determined by the ratio of the number of 
7.5 	hours of instruction provided to that pupil in excess of: (i) the greater of 1,020 hours or 
7.6 	the number of hours required for a full-time secondary pupil in the district to 1,020 for 
7.7 	a secondary pupil; and (ii) the greater of 935 hours or the number of hours required for 
7.8 	a full-time elementary pupil in the district to 935 for an elementary pupil in grades 1 
7.9 	through 6; and (iii) the greater of 425 hours or the number of hours required for a full-time 
7.10 	kindergarten student without a disability in the district to 425 for a kindergarten student 
7.11 	without a disability. Hours that occur after the close of the instructional year in June shall 
7.12 	be attributable to the following fiscal year. A kindergarten student must not be counted 
7.13 	as more than 1.2 pupils in average daily membership under this subdivision. A student 
7.14 	in kindergarten or grades 1 through 12 must not be counted as more than 1.2 pupils in 
7.15 	average daily membership under this subdivision. 
7.16 	(b)(i) To receive general education revenue for a pupil in an alternative program 
7.17 	that has an independent study component, a district must meet the requirements in this 
7.18 	paragraph. The district must develop, for the pupil, a continual learning plan consistent 
7.19 	with section  124D.128, subdivision 3. Each school district that has a state-approved public 
7.20 	alternative program must reserve revenue in an amount equal to at least 90 percent of the 
7.21 	district average general education revenue per pupil unit less compensatory revenue per 
7.22 	pupil unit times the number of pupil units generated by students attending a state-approved 
7.23 	public alternative program. The amount of reserved revenue available under this 
7.24 	subdivision may only be spent for program costs associated with the state-approved public 
7.25 	alternative program. Compensatory revenue must be allocated according to section  
7.26 	126C.15, subdivision 2. 
7.27 	(ii) General education revenue for a pupil in an approved alternative program 
7.28 	without an independent study component must be prorated for a pupil participating for 
7.29 	less than a full year, or its equivalent. The district must develop a continual learning plan 
7.30 	for the pupil, consistent with section  124D.128, subdivision 3. Each school district that 
7.31 	has a state-approved public alternative program must reserve revenue in an amount equal 
7.32 	to at least 90 percent of the district average general education revenue per pupil unit less 
7.33 	compensatory revenue per pupil unit times the number of pupil units generated by students 
7.34 	attending a state-approved public alternative program. The amount of reserved revenue 
7.35 	available under this subdivision may only be spent for program costs associated with the 
8.1 	state-approved public alternative program. Compensatory revenue must be allocated 
8.2 	according to section  126C.15, subdivision 2. 
8.3 	(iii) General education revenue for a pupil in an approved alternative program that 
8.4 	has an independent study component must be paid for each hour of teacher contact 
8.5 	time and each hour of independent study time completed toward a credit or graduation 
8.6 	standards necessary for graduation. Average daily membership for a pupil shall equal the 
8.7 	number of hours of teacher contact time and independent study time divided by 1,020.
8.8 	(iv) For an alternative program having an independent study component, the 
8.9 	commissioner shall require a description of the courses in the program, the kinds of 
8.10 	independent study involved, the expected learning outcomes of the courses, and the means 
8.11 	of measuring student performance against the expected outcomes.

8.12 	EFFECTIVE DATE. This section is effective September 1, 2007.

8.13 	Sec. 8. Minnesota Statutes 2004, section 126C.12, subdivision 1, is amended to read:
8.14 		Subdivision 1.Revenue. Of a district's general education revenue for fiscal year 
8.15 	2000 2007 and thereafter each school district shall reserve an amount equal to the formula 
8.16 	allowance multiplied by the following calculation:
8.17 	(1) the sum of adjusted marginal cost pupils in average daily membership, according 
8.18 	to section  126C.05, subdivision 5, in kindergarten times .057 .115; plus 
8.19 	(2) the sum of adjusted marginal cost pupils in average daily membership, according 
8.20 	to section  126C.05, subdivision 5, in grades 1 to 3 times .115; plus 
8.21 	(3) the sum of adjusted marginal cost pupils in average daily membership, according 
8.22 	to section  126C.05, subdivision 5, in grades 4 to 6 times .06. 

8.23 	Sec. 9. Minnesota Statutes 2004, section 126C.12, subdivision 5, is amended to read:
8.24 		Subd. 5.Additional revenue use. If the board of a district determines that the 
8.25 	district has achieved and is maintaining the class sizes specified in subdivision 4, the board 
8.26 	may use the revenue to reduce class size in grades 4, 5, and 6, provide all-day, everyday 
8.27 	kindergarten, prepare and use individualized learning plans, improve program offerings, 
8.28 	purchase instructional material, services, or technology, or provide staff development 
8.29 	needed for reduced class sizes.

8.30 	EFFECTIVE DATE. This section is effective September 1, 2007.

9.1 	Sec. 10. Minnesota Statutes 2004, section 126C.126, is amended to read:
9.2 	126C.126 REALLOCATING GENERAL EDUCATION REVENUE FOR 
9.3 	ALL-DAY KINDERGARTEN.
9.4 	In order to provide additional revenue for an optional all-day a kindergarten 
9.5 	program, a district may reallocate general education revenue attributable to 12th grade 
9.6 	students who have graduated early under section  120B.07. 

9.7 	EFFECTIVE DATE. This section is effective September 1, 2007.