1.1 	A bill for an act
1.2 	relating to education; providing for prekindergarten through grade 12 education, 
1.3 	including general education; education excellence; special education; facilities, 
1.4 	accounting, and technology; state agencies; technical and conforming 
1.5 	amendments; early childhood; authorizing rulemaking; appropriating money;
1.6 	amending Minnesota Statutes 2004, sections 119A.50, subdivision 1; 119A.52; 
1.7 	119A.53; 119A.545; 120A.20, subdivision 1; 120A.22, subdivision 3; 120B.021, 
1.8 	subdivision 1; 120B.023; 120B.024; 121A.035; 121A.15, subdivision 10; 
1.9 	121A.17, subdivision 3; 122A.18, subdivision 2; 123A.06, subdivision 2; 
1.10 	123A.44; 123A.441; 123A.442; 123A.443; 123B.10, subdivision 1; 123B.77, 
1.11 	subdivision 3, by adding a subdivision; 123B.90, subdivision 2; 123B.91, 
1.12 	by adding a subdivision; 124D.02, subdivisions 2, 4; 124D.095, subdivision 
1.13 	3; 124D.096; 124D.10, subdivision 16; 124D.11, subdivision 9; 124D.13, 
1.14 	subdivisions 2, 3; 124D.61; 124D.68, subdivision 3; 125A.02, subdivision 1; 
1.15 	125A.515, subdivisions 1, 3, 5, 6, 7, 9, 10; 125A.62, subdivision 1; 125A.63, 
1.16 	subdivision 4; 125A.65, subdivisions 3, 4, 6, 8, 10; 125A.69, subdivision 3; 
1.17 	125A.75, subdivision 1, by adding a subdivision; 126C.05, subdivision 1; 
1.18 	126C.10, subdivision 6, by adding subdivisions; 126C.44; 127A.41, subdivision 
1.19 	2; 169.01, subdivision 6; 169.447, subdivision 2; 169.4501, subdivisions 1, 2; 
1.20 	169.4502, subdivision 5; 169.4503, subdivision 20; 171.321, subdivisions 4, 
1.21 	5; 181.101; 245A.023; 245A.14, by adding a subdivision; 299F.30; 626.556, 
1.22 	subdivisions 3b, 3c; Minnesota Statutes 2005 Supplement, sections 120B.021, 
1.23 	subdivision 1a; 120B.11, subdivision 2; 120B.131, subdivision 2; 121A.17, 
1.24 	subdivision 5; 122A.414, subdivisions 2b, 3; 123B.04, subdivision 2; 123B.76, 
1.25 	subdivision 3; 123B.92, subdivisions 1, 5; 124D.095, subdivision 4; 124D.175; 
1.26 	124D.68, subdivision 2; 125A.11, subdivision 1; 125A.79, subdivision 1; 
1.27 	126C.10, subdivisions 24, 31; 126C.43, subdivision 2; 127A.45, subdivision 10; 
1.28 	626.556, subdivisions 2, 3;  Laws 2005, First Special Session chapter 5, article 2, 
1.29 	section 84, subdivision 13; article 7, section 20, subdivision 5; proposing coding 
1.30 	for new law in Minnesota Statutes, chapters 119A; 121A; repealing Minnesota 
1.31 	Statutes 2004, sections 119A.51; 120A.20, subdivision 3; 121A.23; 123B.749; 
1.32 	125A.10; 125A.515, subdivision 2; 169.4502, subdivision 15; 169.4503, 
1.33 	subdivisions 17, 18, 26.
1.34 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

2.1 	ARTICLE 1
2.2 	GENERAL EDUCATION

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

2.25 	Sec. 2. Minnesota Statutes 2004, section 123A.06, subdivision 2, is amended to read:
2.26 		Subd. 2.People to be served. A center shall provide programs for secondary 
2.27 	pupils and adults. A center may also provide programs and services for elementary and 
2.28 	secondary pupils who are not attending the center to assist them in being successful in 
2.29 	school. A center shall use research-based best practices for serving limited English 
2.30 	proficient students and their parents. An individual education plan team may identify a 
2.31 	center as an appropriate placement to the extent a center can provide the student with the 
2.32 	appropriate special education services described in the student's plan. Pupils eligible to 
2.33 	be served are those age five to adults 22 and older who qualify under the graduation 
2.34 	incentives program in section  124D.68, subdivision 2, those enrolled under section 
3.1 	124D.02, subdivision 2, or those pupils who are eligible to receive special education 
3.2 	services under sections  125A.03 to  125A.24, and  125A.65. 

3.3 	Sec. 3. Minnesota Statutes 2005 Supplement, section 123B.76, subdivision 3, is 
3.4 	amended to read:
3.5 		Subd. 3.Expenditures by building. (a) For the purposes of this section, "building" 
3.6 	means education site as defined in section 123B.04, subdivision 1.
3.7 	(b) Each district shall maintain separate accounts to identify general fund 
3.8 	expenditures for each building. All expenditures for regular instruction, secondary 
3.9 	vocational instruction, and school administration must be reported to the department 
3.10 	separately for each building. All expenditures for special education instruction, 
3.11 	instructional support services, and pupil support services provided within a specific 
3.12 	building must be reported to the department separately for each building. Salary 
3.13 	expenditures reported by building must reflect actual salaries for staff at the building and 
3.14 	must not be based on districtwide averages. All other general fund expenditures may be 
3.15 	reported by building or on a districtwide basis.
3.16 	(c) The department must annually report information showing school district general 
3.17 	fund expenditures per pupil by program category for each building and estimated school 
3.18 	district general fund revenue generated by pupils attending each building on its Web 
3.19 	site. For purposes of this report:
3.20 	(1) expenditures not reported by building shall be allocated among buildings on a 
3.21 	uniform per pupil basis;
3.22 	(2) basic skills revenue shall be allocated according to section 126C.10, subdivision 
3.23 	4;
3.24 	(3) secondary sparsity revenue and elementary sparsity revenue shall be allocated 
3.25 	according to section 126C.10, subdivisions 7 and 8;
3.26 	(4) alternative teacher compensation revenue shall be allocated according to section 
3.27 	122A.415, subdivision 1;
3.28 	(5) other general education revenue shall be allocated on a uniform per pupil unit 
3.29 	basis;
3.30 	(5) (6) first grade preparedness aid shall be allocated according to section 124D.081;
3.31 	(6) (7) state and federal special education aid and Title I aid shall be allocated in 
3.32 	proportion to district expenditures for these programs by building; and
3.33 	(7)(8) other general fund revenues shall be allocated on a uniform per pupil basis, 
3.34 	except that the department may allocate other revenues attributable to specific buildings 
3.35 	directly to those buildings.

4.1 	Sec. 4. Minnesota Statutes 2004, section 124D.02, subdivision 2, is amended to read:
4.2 		Subd. 2.Secondary school programs. The board may permit a person who is over 
4.3 	the age of 21 or who has graduated from high school to enroll as a part-time student in a 
4.4 	class or program at a secondary school if there is space available. In determining if there is 
4.5 	space available, full-time public school students, eligible for free enrollment under section 
4.6 	120A.20, subdivision 1, and shared-time students shall be given priority over students 
4.7 	seeking enrollment pursuant to this subdivision, and students returning to complete a 
4.8 	regular course of study shall be given priority over part-time other students seeking 
4.9 	enrollment pursuant to this subdivision. The following are not prerequisites for enrollment:
4.10 	(1) residency in the school district;
4.11 	(2) United States citizenship; or
4.12 	(3) for a person over the age of 21, a high school diploma or equivalency certificate. 
4.13 	A person may enroll in a class or program even if that person attends evening school, an 
4.14 	adult or continuing education, or a postsecondary educational program or institution.

4.15 	Sec. 5. Minnesota Statutes 2004, section 124D.02, subdivision 4, is amended to read:
4.16 		Subd. 4.Part-time student fee. Notwithstanding the provisions of sections  
4.17 	120A.20 and  123B.37, a board may charge a part-time student enrolled pursuant to 
4.18 	subdivision 2 a reasonable fee for a class or program. 

4.19 	Sec. 6. Minnesota Statutes 2005 Supplement, section 124D.68, subdivision 2, is 
4.20 	amended to read:
4.21 		Subd. 2.Eligible pupils. The following pupils are A pupil under the age of 21 or 
4.22 	who meets the requirements of section 120A.20, subdivision 1, paragraph (c), is eligible to 
4.23 	participate in the graduation incentives program:
4.24 	(a) any pupil under the age of 21 who, if the pupil:
4.25 	(1) performs substantially below the performance level for pupils of the same age 
4.26 	in a locally determined achievement test;
4.27 	(2) is at least one year behind in satisfactorily completing coursework or obtaining 
4.28 	credits for graduation;
4.29 	(3) is pregnant or is a parent;
4.30 	(4) has been assessed as chemically dependent;
4.31 	(5) has been excluded or expelled according to sections 121A.40 to 121A.56;
4.32 	(6) has been referred by a school district for enrollment in an eligible program or 
4.33 	a program pursuant to section 124D.69;
4.34 	(7) is a victim of physical or sexual abuse;
5.1 	(8) has experienced mental health problems;
5.2 	(9) has experienced homelessness sometime within six months before requesting a 
5.3 	transfer to an eligible program;
5.4 	(10) speaks English as a second language or has limited English proficiency; or
5.5 	(11) has withdrawn from school or has been chronically truant; or.
5.6 	(b) any person who is at least 21 years of age and who:
5.7 	(1) has received fewer than 14 years of public or nonpublic education, beginning 
5.8 	at age 5;
5.9 	(2) has not completed the requirements for a high school diploma; and
5.10 	(3) at the time of application, (i) is eligible for unemployment benefits or has 
5.11 	exhausted the benefits, (ii) is eligible for, or is receiving income maintenance and support 
5.12 	services, as defined in section 116L.19, subdivision 5, or (iii) is eligible for services under 
5.13 	the displaced homemaker program or any programs under the federal Jobs Training 
5.14 	Partnership Act or its successor.

5.15 	Sec. 7. Minnesota Statutes 2004, section 124D.68, subdivision 3, is amended to read:
5.16 		Subd. 3.Eligible programs. (a) A pupil who is eligible according to subdivision 2 
5.17 	may enroll in area learning centers under sections  123A.05 to  123A.08. 
5.18 	(b) A pupil who is eligible according to subdivision 2 and who is between the ages 
5.19 	of 16 and 21 may enroll in postsecondary courses under section  124D.09. 
5.20 	(c) A pupil who is eligible under subdivision 2, may enroll in any public elementary 
5.21 	or secondary education program. However, a person who is eligible according to 
5.22 	subdivision 2, clause (b), may enroll only if the school board has adopted a resolution 
5.23 	approving the enrollment.
5.24 	(d) A pupil who is eligible under subdivision 2, may enroll in any nonpublic, 
5.25 	nonsectarian school that has contracted with the serving school district to provide 
5.26 	educational services.
5.27 	(e) A pupil who is between the ages of 16 and 21 may enroll in any adult basic 
5.28 	education programs approved under section  124D.52 and operated under the community 
5.29 	education program contained in section  124D.19. 

5.30 	Sec. 8. Minnesota Statutes 2004, section 126C.05, subdivision 1, is amended to read:
5.31 		Subdivision 1.Pupil unit. Pupil units for each Minnesota resident pupil under the 
5.32 	age of 21 or who meets the requirements of section 120A.20, subdivision 1, paragraph 
5.33 	(c), in average daily membership enrolled in the district of residence, in another district 
5.34 	under sections  123A.05 to  123A.08,  124D.03,  124D.06,  124D.07,  124D.08, or  124D.68; 
6.1 	in a charter school under section  124D.10; or for whom the resident district pays tuition 
6.2 	under section  123A.18,  123A.22,  123A.30,  123A.32,  123A.44,  123A.488,  123B.88, 
6.3 	subdivision 4,  124D.04,  124D.05,  125A.03 to  125A.24,  125A.51, or  125A.65, shall be 
6.4 	counted according to this subdivision. 
6.5 	(a) A prekindergarten pupil with a disability who is enrolled in a program approved 
6.6 	by the commissioner and has an individual education plan is counted as the ratio of the 
6.7 	number of hours of assessment and education service to 825 times  1.25 with a minimum 
6.8 	average daily membership of 0.28, but not more than  1.25 pupil units. 
6.9 	(b) A prekindergarten pupil who is assessed but determined not to be handicapped is 
6.10 	counted as the ratio of the number of hours of assessment service to 825 times  1.25. 
6.11 	(c) A kindergarten pupil with a disability who is enrolled in a program approved 
6.12 	by the commissioner is counted as the ratio of the number of hours of assessment and 
6.13 	education services required in the fiscal year by the pupil's individual education program 
6.14 	plan to 875, but not more than one.
6.15 	(d) A kindergarten pupil who is not included in paragraph (c) is counted as .557 of a 
6.16 	pupil unit for fiscal year 2000 and thereafter.
6.17 	(e) A pupil who is in any of grades 1 to 3 is counted as  1.115 pupil units for fiscal 
6.18 	year 2000 and thereafter. 
6.19 	(f) A pupil who is any of grades 4 to 6 is counted as  1.06 pupil units for fiscal 
6.20 	year 1995 and thereafter. 
6.21 	(g) A pupil who is in any of grades 7 to 12 is counted as 1.3 pupil units.
6.22 	(h) A pupil who is in the postsecondary enrollment options program is counted 
6.23 	as 1.3 pupil units.

6.24 	Sec. 9. Minnesota Statutes 2004, section 126C.10, subdivision 6, is amended to read:
6.25 		Subd. 6.Definitions. The definitions in this subdivision apply only to subdivisions 
6.26 	7 and 8.
6.27 	(a) "High school" means a public secondary school, except a charter school under 
6.28 	section 124D.10, that has pupils enrolled in at least the 10th, 11th, and 12th grades. If 
6.29 	there is no secondary high school in the district that has pupils enrolled in at least the 
6.30 	10th, 11th, and 12th grades, and the school is at least 19 miles from the next nearest 
6.31 	school, the commissioner must designate one school in the district as a high school for the 
6.32 	purposes of this section.
6.33 	(b) "Secondary average daily membership" means, for a district that has only one 
6.34 	high school, the average daily membership of pupils served in grades 7 through 12. For a 
6.35 	district that has more than one high school, "secondary average daily membership" for 
7.1 	each high school means the product of the average daily membership of pupils served in 
7.2 	grades 7 through 12 in the high school, times the ratio of six to the number of grades 
7.3 	in the high school.
7.4 	(c) "Attendance area" means the total surface area of the district, in square miles, 
7.5 	divided by the number of high schools in the district. For a district that does not operate 
7.6 	a high school and is less than 19 miles from the nearest operating high school, the 
7.7 	attendance area equals zero.
7.8 	(d) "Isolation index" for a high school means the square root of 55 percent of the 
7.9 	attendance area plus the distance in miles, according to the usually traveled routes, 
7.10 	between the high school and the nearest high school. For a district in which there is located 
7.11 	land defined in section  84A.01,  84A.20, or  84A.31, the distance in miles is the sum of: 
7.12 	(1) the square root of one-half of the attendance area; and
7.13 	(2) the distance from the border of the district to the nearest high school.
7.14 	(e) "Qualifying high school" means a high school that has an isolation index greater 
7.15 	than 23 and that has secondary average daily membership of less than 400.
7.16 	(f) "Qualifying elementary school" means an a public elementary school, except a 
7.17 	charter school under section 124D.10, that is located 19 miles or more from the nearest 
7.18 	elementary school or from the nearest elementary school within the district and, in either 
7.19 	case, has an elementary average daily membership of an average of 20 or fewer per grade.
7.20 	(g) "Elementary average daily membership" means, for a district that has only 
7.21 	one elementary school, the average daily membership of pupils served in kindergarten 
7.22 	through grade 6. For a district that has more than one elementary school, "average daily 
7.23 	membership" for each school means the average daily membership of pupils served in 
7.24 	kindergarten through grade 6 multiplied by the ratio of seven to the number of grades 
7.25 	in the elementary school.

7.26 	Sec. 10. Minnesota Statutes 2005 Supplement, section 126C.10, subdivision 31, 
7.27 	is amended to read:
7.28 		Subd. 31.Transition revenue. (a) A district's transition allowance equals the 
7.29 	greater of zero or the product of the ratio of the number of adjusted marginal cost pupil 
7.30 	units the district would have counted for fiscal year 2004 under Minnesota Statutes 2002 
7.31 	to the district's adjusted marginal cost pupil units for fiscal year 2004, times the difference 
7.32 	between: (1) the lesser of the district's general education revenue per adjusted marginal 
7.33 	cost pupil unit for fiscal year 2003 or the amount of general education revenue the district 
7.34 	would have received per adjusted marginal cost pupil unit for fiscal year 2004 according 
7.35 	to Minnesota Statutes 2002, and (2) the district's general education revenue for fiscal year 
8.1 	2004 excluding transition revenue divided by the number of adjusted marginal cost pupil 
8.2 	units the district would have counted for fiscal year 2004 under Minnesota Statutes 2002.
8.3 	(b) A district's transition revenue for fiscal year 2006 and later equals the sum of 
8.4 	(1) the product of the district's transition allowance times the district's adjusted marginal 
8.5 	cost pupil units plus (2) the amount of referendum revenue under section 126C.17 and 
8.6 	general education revenue, excluding transition revenue, for fiscal year 2004 attributable 
8.7 	to pupils four or five years of age on September 1, 2003, enrolled in a prekindergarten 
8.8 	program implemented by the district before July 1, 2003, and reported as kindergarten 
8.9 	pupils under section 126C.05, subdivision 1, for fiscal year 2004, plus (3) the amount of 
8.10 	compensatory education revenue under subdivision 3 for fiscal year 2005 attributable to 
8.11 	pupils four years of age on September 1, 2003, enrolled in a prekindergarten program 
8.12 	implemented by the district before July 1, 2003, and reported as kindergarten pupils 
8.13 	under section 126C.05, subdivision 1, for fiscal year 2004 multiplied by .04 the district's 
8.14 	transition for prekindergarten revenue under subdivision 31a.

8.15 	EFFECTIVE DATE. This section is effective for revenue for fiscal year 2007 
8.16 	and later.

8.17 	Sec. 11. Minnesota Statutes 2004, section 126C.10, is amended by adding a subdivision 
8.18 	to read:
8.19 		Subd. 31a.Transition for prekindergarten revenue. For fiscal year 2007 and 
8.20 	later, a school district's transition for prekindergarten revenue equals the sum of (1) the 
8.21 	amount of referendum revenue under section 126C.17 and general education revenue, 
8.22 	excluding transition revenue, for fiscal year 2004 attributable to pupils four or five years 
8.23 	of age on September 1, 2003, enrolled in a prekindergarten program implemented by the 
8.24 	district before July 1, 2003, and reported as kindergarten pupils under section 126C.05, 
8.25 	subdivision 1, for fiscal year 2004, plus (2) the amount of compensatory education 
8.26 	revenue under subdivision 3 for fiscal year 2005 attributable to pupils four years of 
8.27 	age on September 1, 2003, enrolled in a prekindergarten program implemented by the 
8.28 	district before July 1, 2003, and reported as kindergarten pupils under section 126C.05, 
8.29 	subdivision 1, for fiscal year 2004 multiplied by .04.

8.30 	EFFECTIVE DATE. This section is effective for revenue for fiscal year 2007 
8.31 	and later.

8.32 	Sec. 12. Minnesota Statutes 2004, section 126C.10, is amended by adding a 
8.33 	subdivision to read:
9.1 		Subd. 31b.Uses of transition for prekindergarten revenue. A school district that 
9.2 	receives revenue under subdivision 31a must reserve that revenue for prekindergarten 
9.3 	programs serving students who turn age four by September 1 and who will enter 
9.4 	kindergarten the following year.

9.5 	EFFECTIVE DATE. This section is effective for fiscal year 2007 and later.

9.6 	Sec. 13. Minnesota Statutes 2005 Supplement, section 126C.43, subdivision 2, is 
9.7 	amended to read:
9.8 		Subd. 2.Payment to unemployment insurance program trust fund by state 
9.9 	and political subdivisions. (a) A district may levy the amount necessary (i) (1) to pay 
9.10 	the district's obligations under section 268.052, subdivision 1, and (ii) (2) to pay for job 
9.11 	placement services offered to employees who may become eligible for benefits pursuant 
9.12 	to section 268.085 for the fiscal year the levy is certified.
9.13 	(b) Districts with a balance remaining in their reserve for reemployment as of June 
9.14 	30, 2003, may not expend the reserved funds for future reemployment expenditures. Each 
9.15 	year a levy reduction must be made to return these funds to taxpayers. The amount of 
9.16 	the levy reduction must be equal to the lesser of: (1) the remaining reserved balance for 
9.17 	reemployment, or (2) the amount of the district's current levy under paragraph (a).

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

9.19 	Sec. 14. Minnesota Statutes 2004, section 126C.44, is amended to read:
9.20 	126C.44 SAFE SCHOOLS LEVY.
9.21 	Each district may make a levy on all taxable property located within the district for 
9.22 	the purposes specified in this section. The maximum amount which may be levied for all 
9.23 	costs under this section shall be equal to $27 multiplied by the district's adjusted marginal 
9.24 	cost pupil units for the school year. The proceeds of the levy must be reserved and used 
9.25 	for directly funding the following purposes or for reimbursing the cities and counties who 
9.26 	contract with the district for the following purposes: (1) to pay the costs incurred for the 
9.27 	salaries, benefits, and transportation costs of peace officers and sheriffs for liaison in 
9.28 	services in the district's schools; (2) to pay the costs for a drug abuse prevention program 
9.29 	as defined in section  609.101, subdivision 3, paragraph (e), in the elementary schools; (3) 
9.30 	to pay the costs for a gang resistance education training curriculum in the district's schools; 
9.31 	(4) to pay the costs for security in the district's schools and on school property; or (5) to 
9.32 	pay the costs for other crime prevention, drug abuse, student and staff safety, and violence 
9.33 	prevention measures taken by the school district. For expenditures under clause (1), the 
10.1 	district must initially attempt to contract for services to be provided by peace officers or 
10.2 	sheriffs with the police department of each city or the sheriff's department of the county 
10.3 	within the district containing the school receiving the services. If a local police department 
10.4 	or a county sheriff's department does not wish to provide the necessary services, the 
10.5 	district may contract for these services with any other police or sheriff's department 
10.6 	located entirely or partially within the school district's boundaries. The levy authorized 
10.7 	under this section is not included in determining the school district's levy limitations.

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

10.9 	Sec. 15. Minnesota Statutes 2005 Supplement, section 127A.45, subdivision 10, 
10.10 	is amended to read:
10.11 		Subd. 10.Payments to school nonoperating funds. Each fiscal year state general 
10.12 	fund payments for a district nonoperating fund must be made at the current year aid 
10.13 	payment percentage of the estimated entitlement during the fiscal year of the entitlement. 
10.14 	This amount shall be paid in 12 equal monthly installments. The amount of the actual 
10.15 	entitlement, after adjustment for actual data, minus the payments made during the fiscal 
10.16 	year of the entitlement must be paid prior to October 31 of the following school year. The 
10.17 	commissioner may make advance payments of debt service equalization aid and state-paid 
10.18 	tax credits  for a district's debt service fund earlier than would occur under the preceding 
10.19 	schedule if the district submits evidence showing a serious cash flow problem in the fund. 
10.20 	The commissioner may make earlier payments during the year and, if necessary, increase 
10.21 	the percent of the entitlement paid to reduce the cash flow problem.

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

10.23 	Sec. 16. ALTERNATIVE TEACHER COMPENSATION REVENUE FOR 
10.24 	SPECIAL SCHOOL DISTRICT NO. 6, SOUTH ST. PAUL.
 10.25 	Notwithstanding Minnesota Statutes, sections 122A.413, 122A.414, 122A.415, 
10.26 	and 126C.10, Special School District No. 6, South St. Paul, shall be eligible for 
10.27 	alternative teacher compensation revenue under Minnesota Statutes, section 122A.415, 
10.28 	for the elementary and middle years international baccalaureate pilot program. The 
10.29 	revenue generated from the alternative teacher compensation program must be used 
10.30 	for preinstructional startup costs, including staff, training, curriculum materials, and 
10.31 	preparation costs.

10.32 	EFFECTIVE DATE. This section is effective for revenue for fiscal years 2007 
10.33 	through 2011.

11.1 	Sec. 17.  REPEALER.
 11.2 	Minnesota Statutes 2004, section 120A.20, subdivision 3, is repealed.

11.3 	ARTICLE 2
11.4 	EDUCATION EXCELLENCE

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

11.28 	Sec. 2. Minnesota Statutes 2004, section 120B.021, subdivision 1, is amended to read:
11.29 		Subdivision 1.Required academic standards. The following subject areas are 
11.30 	required for statewide accountability:
11.31 	(1) language arts;
11.32 	(2) mathematics;
11.33 	(3) science;
12.1 	(4) social studies, including history, geography, economics, and government and 
12.2 	citizenship;
12.3 	(5) health and physical education, for which locally developed academic standards 
12.4 	apply; and
12.5 	(6) the arts, for which statewide or locally developed academic standards apply, as 
12.6 	determined by the school district. Public elementary and middle schools must offer at least 
12.7 	three and require at least two of the following four arts areas: dance; music; theater; and 
12.8 	visual arts. Public high schools must offer at least three and require at least one of the 
12.9 	following five arts areas: media arts; dance; music; theater; and visual arts.
12.10 	The commissioner must submit proposed standards in science and social studies to 
12.11 	the legislature by February 1, 2004.
12.12 	For purposes of applicable federal law, the academic standards for language arts, 
12.13 	mathematics, and science apply to all public school students, except the very few students 
12.14 	with extreme cognitive or physical impairments for whom an individualized education 
12.15 	plan team has determined that the required academic standards are inappropriate. 
12.16 	An individualized education plan team that makes this determination must establish 
12.17 	alternative standards.
12.18 	A school district, no later than the 2007-2008 school year, must adopt graduation 
12.19 	requirements that meet or exceed state graduation requirements established in law or 
12.20 	rule. A school district that incorporates these state graduation requirements before the 
12.21 	2007-2008 school year must provide students who enter the 9th grade in or before 
12.22 	the 2003-2004 school year the opportunity to earn a diploma based on existing locally 
12.23 	established graduation requirements in effect when the students entered the 9th grade. 
12.24 	District efforts to develop, implement, or improve instruction or curriculum as a result 
12.25 	of the provisions of this section must be consistent with sections  120B.10,  120B.11, 
12.26 	and  120B.20. 
12.27 	At a minimum, school districts must maintain the same physical education and 
12.28 	health education requirements for students in kindergarten through grade 8 adopted for the 
12.29 	2005-2006 school year through the 2008-2009 school year. Before a revision of the local 
12.30 	health and physical education standards, a school district must consult the grade-specific 
12.31 	benchmarks developed by the Department of Education's health and physical education 
12.32 	quality teaching network for the six national physical education standards and the seven 
12.33 	national health standards.
12.34 	The commissioner must include the contributions of Minnesota American Indian 
12.35 	tribes and communities as they relate to each of the academic standards during the review 
12.36 	and revision of the required academic standards.

13.1 	Sec. 3. Minnesota Statutes 2005 Supplement, section 120B.021, subdivision 1a, 
13.2 	is amended to read:
13.3 		Subd. 1a.Rigorous course of study; waiver. (a) Upon receiving a student's 
13.4 	application signed by the student's parent or guardian, a school district, area learning 
13.5 	center, or charter school must declare that a student meets or exceeds a specific academic 
13.6 	standard required for graduation under this section if the local school board, the school 
13.7 	board of the school district in which the area learning center is located, or the charter 
13.8 	school board of directors determines that the student:
13.9 	(1) is participating in a course of study, including an advanced placement or 
13.10 	international baccalaureate course or program; a learning opportunity outside the 
13.11 	curriculum of the district, area learning center, or charter school; or an approved 
13.12 	preparatory program for employment or postsecondary education that is equally or more 
13.13 	rigorous than the corresponding state or local academic standard required by the district, 
13.14 	area learning center, or charter school;
13.15 	(2) would be precluded from participating in the rigorous course of study, learning 
13.16 	opportunity, or preparatory employment or postsecondary education program if the student 
13.17 	were required to achieve the academic standard to be waived; and
13.18 	(3) satisfactorily completes the requirements for the rigorous course of study, 
13.19 	learning opportunity, or preparatory employment or postsecondary education program.
13.20 	Consistent with the requirements of this section, the local school board, the school board 
13.21 	of the school district in which the area learning center is located, or the charter school 
13.22 	board of directors also may formally determine other circumstances in which to declare 
13.23 	that a student meets or exceeds a specific academic standard that the site requires for 
13.24 	graduation under this section.
13.25 	(b) A student who satisfactorily completes a postsecondary enrollment options 
13.26 	course or program under section 124D.09, or an advanced placement or international 
13.27 	baccalaureate course or program under section 120B.13, is not required to complete other 
13.28 	requirements of the academic standards corresponding to that specific rigorous course 
13.29 	of study.

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

13.31 	Sec. 4. Minnesota Statutes 2004, section 120B.023, is amended to read:
13.32 	120B.023 BENCHMARKS.
13.33 		Subdivision 1.Benchmarks implement, supplement statewide academic 
13.34 	standards. (a) The commissioner must supplement required state academic standards with 
14.1 	grade-level benchmarks. High school benchmarks may cover more than one grade. The 
14.2 	benchmarks must implement statewide academic standards by specifying the academic 
14.3 	knowledge and skills that schools must offer and students must achieve to satisfactorily 
14.4 	complete a state standard. The commissioner must publish benchmarks are published to 
14.5 	inform and guide parents, teachers, school districts, and other interested persons and for to
14.6 	use in developing tests consistent with the benchmarks.
14.7 	(b) The commissioner shall publish benchmarks in the State Register and transmit 
14.8 	the benchmarks in any other manner that makes them accessible to the general public. The 
14.9 	commissioner may charge a reasonable fee for publications.
14.10 	(c) Once established, the commissioner may change the benchmarks only with 
14.11 	specific legislative authorization and after completing a review under paragraph (d)
14.12 	subdivision 2.
14.13 	(d) The commissioner must develop and implement a system for reviewing on 
14.14 	a four-year cycle each of the required academic standards and related benchmarks and 
14.15 	elective standards beginning in the 2006-2007 school year on a periodic cycle, consistent 
14.16 	with subdivision 2.
14.17 	(e) The benchmarks are not subject to chapter 14 and section  14.386 does not apply. 
14.18 		Subd. 2.Revisions and reviews required. (a) The commissioner of education must 
14.19 	revise and appropriately embed technology and information literacy standards consistent 
14.20 	with recommendations from school media specialists into the state's academic standards 
14.21 	and graduation requirements and implement a review cycle for state academic standards 
14.22 	and related benchmarks, consistent with this subdivision. During each review cycle, the 
14.23 	commissioner also must examine the alignment of each required academic standard and 
14.24 	related benchmark with the knowledge and skills students need for college readiness and 
14.25 	advanced work in the particular subject area.
14.26 	(b) The commissioner in the 2006-2007 school year must revise and align the state's 
14.27 	academic standards and high school graduation requirements in mathematics to require 
14.28 	that students satisfactorily complete the revised mathematics standards, beginning in the 
14.29 	2010-2011 school year. Under the revised standards:
14.30 	(1) students must satisfactorily complete an algebra I credit by the end of eighth 
14.31 	grade; and
14.32 	(2) students scheduled to graduate in the 2014-2015 school year or later must 
14.33 	satisfactorily complete an algebra II credit or its equivalent.
14.34 	The commissioner also must ensure that the statewide mathematics assessments 
14.35 	administered to students in grades 3 through 8 and 11 beginning in the 2010-2011 
14.36 	school year are aligned with the state academic standards in mathematics. The statewide 
15.1 	11th grade mathematics test administered to students under clause (2) beginning in 
15.2 	the 2013-2014 school year must include algebra II test items that are aligned with 
15.3 	corresponding state academic standards in mathematics. The commissioner must 
15.4 	implement a review of the academic standards and related benchmarks in mathematics 
15.5 	beginning in the 2015-2016 school year.
15.6 	(c) The commissioner in the 2007-2008 school year must revise and align the state's 
15.7 	academic standards and high school graduation requirements in the arts to require that 
15.8 	students satisfactorily complete the revised arts standards beginning in the 2010-2011 
15.9 	school year. The commissioner must implement a review of the academic standards and 
15.10 	related benchmarks in arts beginning in the 2016-2017 school year.
15.11 	(d) The commissioner in the 2008-2009 school year must revise and align the state's 
15.12 	academic standards and high school graduation requirements in science to require that 
15.13 	students satisfactorily complete the revised science standards, beginning in the 2011-2012 
15.14 	school year. Under the revised standards, students scheduled to graduate in the 2014-2015 
15.15 	school year or later must satisfactorily complete a chemistry or physics credit. The 
15.16 	commissioner must implement a review of the academic standards and related benchmarks 
15.17 	in science beginning in the 2017-2018 school year.
15.18 	(e) The commissioner in the 2009-2010 school year must revise and align the state's 
15.19 	academic standards and high school graduation requirements in language arts to require 
15.20 	that students satisfactorily complete the revised language arts standards beginning in the 
15.21 	2012-2013 school year. The commissioner must implement a review of the academic 
15.22 	standards and related benchmarks in language arts beginning in the 2018-2019 school year.
15.23 	(f) The commissioner in the 2010-2011 school year must revise and align the state's 
15.24 	academic standards and high school graduation requirements in social studies to require 
15.25 	that students satisfactorily complete the revised social studies standards beginning in the 
15.26 	2013-2014 school year. The commissioner must implement a review of the academic 
15.27 	standards and related benchmarks in social studies beginning in the 2019-2020 school year.
15.28 	(g) School districts and charter schools must revise and align local academic 
15.29 	standards and high school graduation requirements in health, physical education, world 
15.30 	languages, and career and technical education to require students to complete the revised 
15.31 	standards beginning in a school year determined by the school district or charter school. 
15.32 	School districts and charter schools must formally establish a periodic review cycle for 
15.33 	the academic standards and related benchmarks in health, physical education, world 
15.34 	languages, and career and technical education.

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

16.1 	Sec. 5. Minnesota Statutes 2004, section 120B.024, is amended to read:
16.2 	120B.024 GRADUATION REQUIREMENTS; COURSE CREDITS; 
16.3 	STUDENT TRANSFERS.
16.4 	(a) Students beginning 9th grade in the 2004-2005 school year and later must 
16.5 	successfully complete the following high school level course credits for graduation:
16.6 	(1) four credits of language arts;
16.7 	(2) three credits of mathematics, encompassing at least algebra, geometry, statistics, 
16.8 	and probability sufficient to satisfy the academic standard and beginning in the 2010-2011 
16.9 	school year for students scheduled to graduate in the 2014-2015 school year or later, one 
16.10 	algebra II credit or its equivalent;
16.11 	(3) three credits of science, including at least one credit in biology and for the 
16.12 	2011-2012 school year and later, one credit in chemistry or physics;
16.13 	(4) three and one-half credits of social studies, encompassing at least United 
16.14 	States history, geography, government and citizenship, world history, and economics or 
16.15 	three credits of social studies encompassing at least United States history, geography, 
16.16 	government and citizenship, and world history, and one-half credit of economics taught in 
16.17 	a school's social studies, agriculture education, or business department;
16.18 	(5) one credit in the arts; and
16.19 	(6) a minimum of seven elective course credits.
16.20 	(b) Students beginning 9th grade in the 2006-2007 school year and later must 
16.21 	complete the following course credits for graduation in addition to those specified in 
16.22 	paragraph (a), clauses (1) to (5):
16.23 	(1) one-half credit in physical education and one-half credit in health education; and
16.24 	(2) a minimum of six elective course credits instead of the seven elective course 
16.25 	credits specified in paragraph (a), clause (6).
16.26 	(c) A course credit is equivalent to a student successfully completing an academic 
16.27 	year of study or a student mastering the applicable subject matter, as determined by the 
16.28 	local school district.
16.29 	(d) An agriculture science course may fulfill a science credit requirement under 
16.30 	this section.
16.31 	(e) A district, area learning center, and charter school must establish processes by 
16.32 	which to transfer as completed:
16.33 	(1) those course credit requirements that other school sites within the district or 
16.34 	other public schools verify on transcripts as completed; and
16.35 	(2) the work that educational institutions outside the state accept for completing the 
16.36 	equivalent of course credit requirements and verify on transcripts as completed.

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

17.2 	Sec. 6. Minnesota Statutes 2005 Supplement, section 120B.131, subdivision 2, is 
17.3 	amended to read:
17.4 		Subd. 2.Reimbursement for examination fees. The state may reimburse 
17.5 	college-level examination program (CLEP) fees for a Minnesota public or nonpublic
17.6 	high school student who has successfully completed one or more college-level courses 
17.7 	in high school and earned a satisfactory score on one or more CLEP examinations in the 
17.8 	subject matter of each examination in the following subjects: composition and literature, 
17.9 	mathematics and science, social sciences and history, foreign languages, and business and 
17.10 	humanities. The state may reimburse each successful student for up to six examination 
17.11 	fees. The commissioner shall establish application procedures and a process and schedule 
17.12 	for fee reimbursements. The commissioner must give priority to reimburse the CLEP 
17.13 	examination fees of students of low-income families.

17.14 	Sec. 7. [121A.02] SCHOOL SAFETY.
17.15 		Subdivision 1.School safety advisory council. A school safety advisory council 
17.16 	is established under section 15.059.  The advisory council is composed of 12 members 
17.17 	representing school boards, school counselors, school psychologists, law enforcement 
17.18 	agencies, mental health services, substance abuse services, faith communities, school 
17.19 	administrators, students, and school athletic departments and extracurricular organizations. 
17.20 	The members of the council shall be appointed by the commissioner and must be from 
17.21 	geographically diverse regions of the state.
17.22 		Subd. 2.Duties. The advisory council shall advise the commissioner on issues 
17.23 	related to school safety.  The advisory council, in cooperation with the commissioner, 
17.24 	shall make recommendations for the creation of a Center for School Safety for the state 
17.25 	that serves as the central point for the collection and dissemination of information about 
17.26 	successful school safety programs, provide services to schools to assess current school 
17.27 	environments, and provide materials, training, and technical assistance.
17.28 		Subd. 3.Center for School Safety. Consistent with the recommendations of the 
17.29 	advisory council, the commissioner shall establish the Center for School Safety. The 
17.30 	commissioner may develop and utilize a request for proposal process for the establishment 
17.31 	of the Center for School Safety. The advisory council shall continue to advise the 
17.32 	commissioner and the center on its operations. The Center for School Safety shall, at a 
17.33 	minimum:
17.34 	(1) establish a clearinghouse for information and materials concerning school safety;
18.1 	(2) provide safe school assessments;
18.2 	(3) provide training and technical assistance customized to individual school needs 
18.3 	for school staff, students, and parents;
18.4 	(4) provide services to enhance school climate;
18.5 	(5) coordinate school efforts with the broader community; and
18.6 	(6) evaluate and report on the implementation and effectiveness of the services 
18.7 	provided by the center.

18.8 	Sec. 8. Minnesota Statutes 2004, section 121A.035, is amended to read:
18.9 	121A.035 CRISIS MANAGEMENT POLICY.
18.10 		Subdivision 1.Model policy. By December 1, 1999, The commissioner shall 
18.11 	maintain and make available to school boards and charter schools a model crisis 
18.12 	management policy that includes, among other items, school lock-down and tornado drills, 
18.13 	consistent with subdivision 2, and school fire drills under section 299F.30.
18.14 		Subd. 2.School district and charter school policy. By July 1, 2000, A school 
18.15 	board and a charter school must adopt a district crisis management policy to address 
18.16 	potential violent crisis situations in the district or charter school. The policy must be 
18.17 	developed in consultation cooperatively with administrators, teachers, employees, 
18.18 	students, parents, community members, law enforcement agencies, other emergency 
18.19 	management officials, county attorney offices, social service agencies, emergency medical 
18.20 	responders, and any other appropriate individuals or organizations. The policy must 
18.21 	include at least five school lock-down drills, five school fire drills consistent with section 
18.22 	299F.30, and one tornado drill.

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

18.25 	Sec. 9. [121A.231] COMPREHENSIVE FAMILY LIFE AND SEXUALITY 
18.26 	EDUCATION PROGRAMS.
18.27 		Subdivision 1.Definitions. (a) "Comprehensive family life and sexuality education" 
18.28 	means education in grades 7 through 12 that:
18.29 	(1) respects community values and encourages family communication;
18.30 	(2) develops skills in communication, decision making, and conflict resolution;
18.31 	(3) contributes to healthy relationships;
18.32 	(4) provides human development and sexuality education that is age appropriate 
18.33 	and medically accurate;
19.1 	(5) includes an abstinence-first approach to delaying initiation of sexual activity that 
19.2 	emphasizes abstinence while also including education about the use of protection and 
19.3 	contraception; and
19.4 	(6) promotes individual responsibility.
19.5 	(b) "Age appropriate" refers to topics, messages, and teaching methods suitable to 
19.6 	particular ages or age groups of children and adolescents, based on developing cognitive, 
19.7 	emotional, and behavioral capacity typical for the age or age group.
19.8 	(c) "Medically accurate" means verified or supported by research conducted in 
19.9 	compliance with scientific methods and published in peer-reviewed journals, where 
19.10 	appropriate, and recognized as accurate and objective by professional organizations 
19.11 	and agencies in the relevant field, such as the federal Centers for Disease Control 
19.12 	and Prevention, the American Public Health Association, the American Academy of 
19.13 	Pediatrics, or the American College of Obstetricians and Gynecologists.
19.14 		Subd. 2.Curriculum requirements. (a) A school district may offer and may 
19.15 	independently establish policies, procedures, curriculum, and services for providing 
19.16 	comprehensive family life and sexuality education that is age appropriate and medically 
19.17 	accurate for kindergarten through grade 6.
19.18 	(b) A school district must offer and may independently establish policies, procedures, 
19.19 	curriculum, and services for providing comprehensive family life and sexuality education 
19.20 	that is age appropriate and medically accurate for grades 7 through 12.
19.21 		Subd. 3.Notice and parental options. (a) It is the legislature's intent to encourage 
19.22 	pupils to communicate with their parents or guardians about human sexuality and to respect 
19.23 	rights of parents or guardians to supervise their children's education on these subjects.
19.24 	(b) Parents or guardians may excuse their children from all or part of a 
19.25 	comprehensive family life and sexuality education program.
19.26 	(c) A school district must establish procedures for providing parents or guardians 
19.27 	reasonable notice with the following information:
19.28 	(1) if the district is offering a comprehensive family life and sexuality education 
19.29 	program to the parents' or guardians' child during the course of the year;
19.30 	(2) how the parents or guardians may inspect the written and audio/visual 
19.31 	educational materials used in the program and the process for inspection;
19.32 	(3) if the program is presented by school district personnel or outside consultants, 
19.33 	and if outside consultants are used, who they may be; and 
19.34 	(4) parents' or guardians' right to choose not to have their child participate in the 
19.35 	program and the procedure for exercising that right.
20.1 	(d) A school district must establish procedures for reasonably restricting the 
20.2 	availability of written and audio/visual educational materials from public view of students 
20.3 	who have been excused from all or part of a comprehensive family life and sexuality 
20.4 	education program at the request of a parent or guardian.
20.5 		Subd. 4.Assistance to school districts. (a) The Department of Education may 
20.6 	offer services to school districts to help them implement effective comprehensive family 
20.7 	life and sexuality education programs.  In providing these services, the department may 
20.8 	contract with a school district, or a school district in partnership with a local health agency 
20.9 	or a nonprofit organization, to establish up to eight regional training sites, taking into 
20.10 	account geographical balance, to provide:
20.11 	(1) training for teachers, parents, and community members in the development of 
20.12 	comprehensive family life and sexuality education curriculum or services and in planning 
20.13 	for monitoring and evaluation activities;
20.14 	(2) resource staff persons to provide expert training, curriculum development and 
20.15 	implementation, and evaluation services;
20.16 	(3) technical assistance to promote and coordinate community, parent, and youth 
20.17 	forums in communities identified as having high needs for comprehensive family life 
20.18 	and sexuality education;
20.19 	(4) technical assistance for issue management and policy development training for 
20.20 	school boards, superintendents, principals, and administrators across the state; and 
20.21 	(5) funding for grants to school-based comprehensive family life and sexuality 
20.22 	education programs to promote innovation and to recognize outstanding performance and 
20.23 	promote replication of demonstrably effective strategies.
20.24 	(b) Technical assistance provided by the department to school districts or regional 
20.25 	training sites may:
20.26 	(1) promote instruction and use of materials that are age appropriate;
20.27 	(2) provide information that is medically accurate and objective;
20.28 	(3) provide instruction and promote use of materials that are respectful of marriage 
20.29 	and commitments in relationships;
20.30 	(4) provide instruction and promote use of materials that are appropriate for use 
20.31 	with pupils and family experiences based on race, gender, sexual orientation, and ethnic 
20.32 	and cultural background, and appropriately accommodate alternative learning based on 
20.33 	language or disability;
20.34 	(5) provide instruction and promote use of materials that encourage pupils to 
20.35 	communicate with their parents or guardians about human sexuality;
21.1 	(6) provide instruction and promote use of age-appropriate materials that teach 
21.2 	abstinence from sexual intercourse as the only certain way to prevent unintended 
21.3 	pregnancy or sexually transmitted infections, including HIV, and provide information 
21.4 	about the role and value of abstinence while also providing medically accurate information 
21.5 	on other methods of preventing and reducing risk for unintended pregnancy and sexually 
21.6 	transmitted infections;
21.7 	(7) provide instruction and promote use of age-appropriate materials that are 
21.8 	medically accurate in explaining transmission modes, risks, symptoms, and treatments for 
21.9 	sexually transmitted infections, including HIV;
21.10 	(8) provide instruction and promote use of age-appropriate materials that address 
21.11 	varied societal views on sexuality, sexual behaviors, pregnancy, and sexually transmitted 
21.12 	infections, including HIV, in an age-appropriate manner;
21.13 	(9) provide instruction and promote use of age-appropriate materials that provide 
21.14 	information about the effectiveness and safety of all FDA-approved methods for 
21.15 	preventing and reducing risk for unintended pregnancy and sexually transmitted 
21.16 	infections, including HIV;
21.17 	(10) provide instruction and promote use of age-appropriate materials that provide 
21.18 	instruction in skills for making and implementing responsible decisions about sexuality;
21.19 	(11) provide instruction and promote use of age-appropriate materials that provide 
21.20 	instruction in skills for making and implementing responsible decisions about finding and 
21.21 	using health services; and 
21.22 	(12) provide instruction and promote use of age-appropriate materials that do not 
21.23 	teach or promote religious doctrine or reflect or promote bias against any person on the 
21.24 	basis of any category protected under the Minnesota Human Rights Act, chapter 363A.

21.25 	Sec. 10. Minnesota Statutes 2004, section 122A.18, subdivision 2, is amended to read:
21.26 		Subd. 2.Teacher and support personnel qualifications. (a) The Board of 
21.27 	Teaching must issue licenses under its jurisdiction to persons the board finds to be 
21.28 	qualified and competent for their respective positions.
21.29 	(b) The board must require a person to successfully complete an examination of 
21.30 	skills in reading, writing, and mathematics before being granted an initial teaching license 
21.31 	to provide direct instruction to pupils in prekindergarten, elementary, secondary, or special 
21.32 	education programs. The board must require colleges and universities offering a board 
21.33 	approved teacher preparation program to provide remedial assistance that includes a 
21.34 	formal diagnostic component to persons enrolled in their institution who did not achieve a 
21.35 	qualifying score on the skills examination, including those for whom English is a second 
22.1 	language. The colleges and universities must provide assistance in the specific academic 
22.2 	areas of deficiency in which the person did not achieve a qualifying score. School 
22.3 	districts must provide similar, appropriate, and timely remedial assistance that includes a 
22.4 	formal diagnostic component and mentoring to those persons employed by the district 
22.5 	who completed their teacher education program outside the state of Minnesota, received 
22.6 	a one-year license to teach in Minnesota and did not achieve a qualifying score on the 
22.7 	skills examination, including those persons for whom English is a second language. The 
22.8 	Board of Teaching shall report annually to the education committees of the legislature 
22.9 	on the total number of teacher candidates during the most recent school year taking the 
22.10 	skills examination, the number who achieve a qualifying score on the examination, the 
22.11 	number who do not achieve a qualifying score on the examination, the distribution of all 
22.12 	candidates' scores, the number of candidates who have taken the examination at least once 
22.13 	before, and the number of candidates who have taken the examination at least once before 
22.14 	and achieve a qualifying score.
22.15 	(c) A person who has completed an approved teacher preparation program and 
22.16 	obtained a one-year license to teach, but has not successfully completed the skills 
22.17 	examination, may renew the one-year license for two additional one-year periods. Each 
22.18 	renewal of the one-year license is contingent upon the licensee:
22.19 	(1) providing evidence of participating in an approved remedial assistance program 
22.20 	provided by a school district or postsecondary institution that includes a formal diagnostic 
22.21 	component in the specific areas in which the licensee did not obtain qualifying scores; and
22.22 	(2) attempting to successfully complete the skills examination during the period 
22.23 	of each one-year license.
22.24 	(d) The Board of Teaching must grant continuing licenses only to those persons who 
22.25 	have met board criteria for granting a continuing license, which includes successfully 
22.26 	completing the skills examination in reading, writing, and mathematics.
22.27 	(e) All colleges and universities approved by the board of teaching to prepare persons 
22.28 	for teacher licensure must include in their teacher preparation programs a common core 
22.29 	of teaching knowledge and skills to be acquired by all persons recommended for teacher 
22.30 	licensure. This common core shall meet the standards developed by the interstate new 
22.31 	teacher assessment and support consortium in its 1992 "model standards for beginning 
22.32 	teacher licensing and development.," and must include technology and information 
22.33 	literacy standards that are consistent with recommendations from media specialists and 
22.34 	the department's Educator Licensing and Teacher Quality Division. The board must 
22.35 	develop and implement a system for reviewing on a seven-year cycle all standards of 
22.36 	effective practice for teachers beginning in the 2007-2008 school year. Amendments to 
23.1 	standards adopted under this paragraph are covered by chapter 14. The board of teaching 
23.2 	shall report annually to the education committees of the legislature on the performance 
23.3 	of teacher candidates on common core assessments of knowledge and skills under this 
23.4 	paragraph during the most recent school year.

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

23.6 	Sec. 11. Minnesota Statutes 2005 Supplement, section 122A.414, subdivision 2b, 
23.7 	is amended to read:
23.8 		Subd. 2b.Approval process. (a) Consistent with the requirements of this section 
23.9 	and sections 122A.413 and 122A.415, the department must prepare and transmit to 
23.10 	interested school districts, intermediate school districts, school sites, and charter schools 
23.11 	a standard form for applying to participate in the alternative teacher professional pay 
23.12 	system. An interested school district, intermediate school district, school site, or charter 
23.13 	school must submit to the commissioner a completed application executed by the district 
23.14 	superintendent and the exclusive bargaining representative of the teachers if the applicant 
23.15 	is a school district, intermediate school district, or school site, or executed by the charter 
23.16 	school board of directors if the applicant is a charter school. The application must include 
23.17 	the proposed alternative teacher professional pay system agreement under subdivision 
23.18 	2. The department must convene a review committee that at least includes teachers and 
23.19 	administrators within 30 days of receiving a completed application to recommend to 
23.20 	the commissioner whether to approve or disapprove the application. The commissioner 
23.21 	must approve applications on a first-come, first-served basis. The applicant's alternative 
23.22 	teacher professional pay system agreement must be legally binding on the applicant 
23.23 	and the collective bargaining representative before the applicant receives alternative 
23.24 	compensation revenue. The commissioner must approve or disapprove an application 
23.25 	based solely on the explicit requirements under subdivisions 2 and 2a and may not impose 
23.26 	any other conditions for approval.
23.27 	(b) If the commissioner disapproves an application, the commissioner must give the 
23.28 	applicant timely notice of the specific reasons in detail for disapproving the application. 
23.29 	The applicant may revise and resubmit its application and related documents to the 
23.30 	commissioner within 30 days of receiving notice of the commissioner's disapproval and 
23.31 	the commissioner must approve or disapprove the revised application, consistent with this 
23.32 	subdivision. Applications that are revised and then approved are considered submitted on 
23.33 	the date the applicant initially submitted the application.

24.1 	Sec. 12. Minnesota Statutes 2005 Supplement, section 122A.414, subdivision 3, 
24.2 	is amended to read:
24.3 		Subd. 3.Report; continued funding. (a) Participating districts, intermediate 
24.4 	school districts, school sites, and charter schools must report on the implementation and 
24.5 	effectiveness of the alternative teacher professional pay system, particularly addressing 
24.6 	each requirement under subdivision 2 and make annual recommendations by June 15 to 
24.7 	their school boards. The school board or board of directors shall transmit a copy of the 
24.8 	report with a summary of the findings and recommendations of the district, intermediate 
24.9 	school district, school site, or charter school to the commissioner.
24.10 	(b) If the commissioner determines that a school district, intermediate school district, 
24.11 	school site, or charter school that receives alternative teacher compensation revenue is not 
24.12 	complying with the requirements of this section, the commissioner may withhold funding 
24.13 	from that participant. Before making the determination, the commissioner must notify the 
24.14 	participant of any deficiencies and provide the participant an opportunity to comply.
24.15 	(c) The commissioner's review and evaluation of an alternative teacher professional 
24.16 	pay system must be judged relative to the participant's approved plan and may not impose 
24.17 	any criteria other than are contained in the plan or the explicit requirements of this section.

24.18 	Sec. 13. Minnesota Statutes 2004, section 123B.77, subdivision 3, is amended to read:
24.19 		Subd. 3.Statement for comparison and correction. (a) By November 30 of the 
24.20 	calendar year of the submission of the unaudited financial data, the district must provide to 
24.21 	the commissioner audited financial data for the preceding fiscal year. The audit must be 
24.22 	conducted in compliance with generally accepted governmental auditing standards, the 
24.23 	federal Single Audit Act, and the Minnesota legal compliance guide issued by the Office 
24.24 	of the State Auditor. An audited financial statement prepared in a form which will allow 
24.25 	comparison with and correction of material differences in the unaudited financial data 
24.26 	shall be submitted to the commissioner and the state auditor by December 31. The audited 
24.27 	financial statement must also provide a statement of assurance pertaining to uniform 
24.28 	financial accounting and reporting standards compliance and a copy of the management 
24.29 	letter submitted to the district by the school district's auditor.
24.30 	(b) By January 15 of the calendar year following the submission of the unaudited 
24.31 	financial data, the commissioner shall convert the audited financial data required by this 
24.32 	subdivision into the consolidated financial statement format required under subdivision 1a 
24.33 	and publish the information on the department's Web site.

24.34 	EFFECTIVE DATE. This section is effective for financial statements prepared in 
24.35 	2006 and later.

25.1 	Sec. 14. Minnesota Statutes 2004, section 123B.90, subdivision 2, is amended to read:
25.2 		Subd. 2.Student training. (a) Each district must provide public school pupils 
25.3 	enrolled in kindergarten through grade 10 with age-appropriate school bus safety training, 
25.4 	as described in this section, of the following concepts:
25.5 	(1) transportation by school bus is a privilege and not a right;
25.6 	(2) district policies for student conduct and school bus safety;
25.7 	(3) appropriate conduct while on the school bus;
25.8 	(4) the danger zones surrounding a school bus;
25.9 	(5) procedures for safely boarding and leaving a school bus;
25.10 	(6) procedures for safe street or road crossing; and
25.11 	(7) school bus evacuation.
25.12 	(b) Each nonpublic school located within the district must provide all nonpublic 
25.13 	school pupils enrolled in kindergarten through grade 10 who are transported by school 
25.14 	bus at public expense and attend school within the district's boundaries with training as 
25.15 	required in paragraph (a).
25.16 	(c) Students enrolled in kindergarten through grade 6 who are transported by school 
25.17 	bus and are enrolled during the first or second week of school must receive the school bus 
25.18 	safety training competencies by the end of the third week of school. Students enrolled in 
25.19 	grades 7 through 10 who are transported by school bus and are enrolled during the first or 
25.20 	second week of school and have not previously received school bus safety training must 
25.21 	receive the training or receive bus safety instructional materials by the end of the sixth 
25.22 	week of school. Students taking driver's training instructional classes and other students in 
25.23 	grades 9 and grade 9 or 10 must receive training in the laws and proper procedures when 
25.24 	operating a motor vehicle in the vicinity of a school bus. Students enrolled in kindergarten 
25.25 	through grade 10 who enroll in a school after the second week of school and are 
25.26 	transported by school bus and have not received training in their previous school district 
25.27 	shall undergo school bus safety training or receive bus safety instructional materials 
25.28 	within four weeks of the first day of attendance. Upon request of the superintendent 
25.29 	of schools, the school transportation safety director in each district must certify to the 
25.30 	superintendent of schools annually that all students transported by school bus within 
25.31 	the district have received the school bus safety training according to this section. Upon 
25.32 	request of the superintendent of the school district where the nonpublic school is located, 
25.33 	the principal or other chief administrator of each nonpublic school must certify annually to 
25.34 	the school transportation safety director of the district in which the school is located that 
25.35 	the school's students transported by school bus at public expense have received training 
25.36 	according to this section.
26.1 	(d) A district and a nonpublic school with students transported by school bus at 
26.2 	public expense may provide kindergarten pupils with bus safety training before the first 
26.3 	day of school.
26.4 	(e) A district and a nonpublic school with students transported by school bus at 
26.5 	public expense may also provide student safety education for bicycling and pedestrian 
26.6 	safety, for students enrolled in kindergarten through grade 5.
26.7 	(f) A district and a nonpublic school with students transported by school bus at 
26.8 	public expense must make reasonable accommodations for the school bus safety training 
26.9 	of pupils known to speak English as a second language and pupils with disabilities.
26.10 	(g) The district and a nonpublic school with students transported by school bus at 
26.11 	public expense must provide students enrolled in kindergarten through grade 3 school bus 
26.12 	safety training twice during the school year.
26.13 	(h) A district and a nonpublic school with students transported by school bus at public 
26.14 	expense must conduct a school bus evacuation drill at least once during the school year.

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

26.16 	Sec. 15. Minnesota Statutes 2004, section 123B.91, is amended by adding a 
26.17 	subdivision to read:
26.18 		Subd. 1a.Compliance by nonpublic and charter school students. A nonpublic or 
26.19 	charter school student transported by a public school district shall comply with student bus 
26.20 	conduct and student bus discipline policies of the transporting public school district.

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

26.22 	Sec. 16. Minnesota Statutes 2005 Supplement, section 123B.92, subdivision 1, is 
26.23 	amended to read:
26.24 		Subdivision 1.Definitions. For purposes of this section and section 125A.76, the 
26.25 	terms defined in this subdivision have the meanings given to them.
26.26 	(a) "Actual expenditure per pupil transported in the regular and excess transportation 
26.27 	categories" means the quotient obtained by dividing:
26.28 	(1) the sum of:
26.29 	(i) all expenditures for transportation in the regular category, as defined in paragraph 
26.30 	(b), clause (1), and the excess category, as defined in paragraph (b), clause (2), plus
26.31 	(ii) an amount equal to one year's depreciation on the district's school bus fleet 
26.32 	and mobile units computed on a straight line basis at the rate of 15 percent per year for 
27.1 	districts operating a program under section 124D.128 for grades 1 to 12 for all students in 
27.2 	the district and 12-1/2 percent per year for other districts of the cost of the fleet, plus
27.3 	(iii) an amount equal to one year's depreciation on the district's type three school 
27.4 	buses, as defined in section 169.01, subdivision 6, clause (5), which must be used a 
27.5 	majority of the time for pupil transportation purposes, computed on a straight line basis at 
27.6 	the rate of 20 percent per year of the cost of the type three school buses by:
27.7 	(2) the number of pupils eligible for transportation in the regular category, as defined 
27.8 	in paragraph (b), clause (1), and the excess category, as defined in paragraph (b), clause (2).
27.9 	(b) "Transportation category" means a category of transportation service provided to 
27.10 	pupils as follows:
27.11 	(1) Regular transportation is:
27.12 	(i) transportation to and from school during the regular school year for resident 
27.13 	elementary pupils residing one mile or more from the public or nonpublic school they 
27.14 	attend, and resident secondary pupils residing two miles or more from the public 
27.15 	or nonpublic school they attend, excluding desegregation transportation and noon 
27.16 	kindergarten transportation; but with respect to transportation of pupils to and from 
27.17 	nonpublic schools, only to the extent permitted by sections 123B.84 to 123B.87;
27.18 	(ii) transportation of resident pupils to and from language immersion programs;
27.19 	(iii) transportation of a pupil who is a custodial parent and that pupil's child between 
27.20 	the pupil's home and the child care provider and between the provider and the school, if 
27.21 	the home and provider are within the attendance area of the school;
27.22 	(iv) transportation to and from or board and lodging in another district, of resident 
27.23 	pupils of a district without a secondary school; and
27.24 	(v) transportation to and from school during the regular school year required under 
27.25 	subdivision 3 for nonresident elementary pupils when the distance from the attendance 
27.26 	area border to the public school is one mile or more, and for nonresident secondary pupils 
27.27 	when the distance from the attendance area border to the public school is two miles or 
27.28 	more, excluding desegregation transportation and noon kindergarten transportation.
27.29 	For the purposes of this paragraph, a district may designate a licensed day care 
27.30 	facility, school day care facility, respite care facility, the residence of a relative, or the 
27.31 	residence of a person chosen by the pupil's parent or guardian as the home of a pupil for 
27.32 	part or all of the day, if requested by the pupil's parent or guardian, and if that facility or 
27.33 	residence is within the attendance area of the school the pupil attends.
27.34 	(2) Excess transportation is:
27.35 	(i) transportation to and from school during the regular school year for resident 
27.36 	secondary pupils residing at least one mile but less than two miles from the public or 
28.1 	nonpublic school they attend, and transportation to and from school for resident pupils 
28.2 	residing less than one mile from school who are transported because of extraordinary 
28.3 	traffic, drug, or crime hazards; and
28.4 	(ii) transportation to and from school during the regular school year required under 
28.5 	subdivision 3 for nonresident secondary pupils when the distance from the attendance area 
28.6 	border to the school is at least one mile but less than two miles from the public school 
28.7 	they attend, and for nonresident pupils when the distance from the attendance area border 
28.8 	to the school is less than one mile from the school and who are transported because of 
28.9 	extraordinary traffic, drug, or crime hazards.
28.10 	(3) Desegregation transportation is transportation within and outside of the district 
28.11 	during the regular school year of pupils to and from schools located outside their normal 
28.12 	attendance areas under a plan for desegregation mandated by the commissioner or under 
28.13 	court order.
28.14 	(4) "Transportation services for pupils with disabilities" is:
28.15 	(i) transportation of pupils with disabilities who cannot be transported on a regular 
28.16 	school bus between home or a respite care facility and school;
28.17 	(ii) necessary transportation of pupils with disabilities from home or from school to 
28.18 	other buildings, including centers such as developmental achievement centers, hospitals, 
28.19 	and treatment centers where special instruction or services required by sections 125A.03
28.20 	to 125A.24, 125A.26 to 125A.48, and 125A.65 are provided, within or outside the district 
28.21 	where services are provided;
28.22 	(iii) necessary transportation for resident pupils with disabilities required by sections 
28.23 	125A.12, and 125A.26 to 125A.48;
28.24 	(iv) board and lodging for pupils with disabilities in a district maintaining special 
28.25 	classes;
28.26 	(v) transportation from one educational facility to another within the district for 
28.27 	resident pupils enrolled on a shared-time basis in educational programs, and necessary 
28.28 	transportation required by sections 125A.18, and 125A.26 to 125A.48, for resident pupils 
28.29 	with disabilities who are provided special instruction and services on a shared-time basis 
28.30 	or if resident pupils are not transported, the costs of necessary travel between public 
28.31 	and private schools or neutral instructional sites by essential personnel employed by the 
28.32 	district's program for children with a disability;
28.33 	(vi) transportation for resident pupils with disabilities to and from board and lodging 
28.34 	facilities when the pupil is boarded and lodged for educational purposes; and
28.35 	(vii) services described in clauses (i) to (vi), when provided for pupils with 
28.36 	disabilities in conjunction with a summer instructional program that relates to the pupil's 
29.1 	individual education plan or in conjunction with a learning year program established 
29.2 	under section 124D.128.
29.3 	For purposes of computing special education base revenue under section 125A.76, 
29.4 	subdivision 2, the cost of providing transportation for children with disabilities includes 
29.5 	(A) the additional cost of transporting a homeless student from a temporary nonshelter 
29.6 	home in another district to the school of origin, or a formerly homeless student from a 
29.7 	permanent home in another district to the school of origin but only through the end of the 
29.8 	academic year; and (B) depreciation on district-owned school buses purchased after July 1, 
29.9 	2005, and used primarily for transportation of pupils with disabilities, calculated according 
29.10 	to paragraph (a), clauses (ii) and (iii). Depreciation costs included in the disabled 
29.11 	transportation category must be excluded in calculating the actual expenditure per pupil 
29.12 	transported in the regular and excess transportation categories according to paragraph (a).
29.13 	(5) "Nonpublic nonregular transportation" is:
29.14 	(i) transportation from one educational facility to another within the district for 
29.15 	resident pupils enrolled on a shared-time basis in educational programs, excluding 
29.16 	transportation for nonpublic pupils with disabilities under clause (4);
29.17 	(ii) transportation within district boundaries between a nonpublic school and a 
29.18 	public school or a neutral site for nonpublic school pupils who are provided pupil support 
29.19 	services pursuant to section 123B.44; and
29.20 	(iii) late transportation home from school or between schools within a district for 
29.21 	nonpublic school pupils involved in after-school activities.
29.22 	(c) "Mobile unit" means a vehicle or trailer designed to provide facilities for 
29.23 	educational programs and services, including diagnostic testing, guidance and counseling 
29.24 	services, and health services. A mobile unit located off nonpublic school premises is a 
29.25 	neutral site as defined in section 123B.41, subdivision 13.

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

29.27 	Sec. 17. Minnesota Statutes 2005 Supplement, section 123B.92, subdivision 5, is 
29.28 	amended to read:
29.29 		Subd. 5.District reports. (a) Each district must report data to the department as 
29.30 	required by the department to account for transportation expenditures.
29.31 	(b) Salaries and fringe benefits of district employees whose primary duties are 
29.32 	other than transportation, including central office administrators and staff, building 
29.33 	administrators and staff, teachers, social workers, school nurses, and instructional aides, 
29.34 	must not be included in a district's transportation expenditures, except that a district may 
29.35 	include salaries and benefits according to paragraph (c) for (1) an employee designated 
30.1 	as the district transportation director, (2) an employee providing direct support to the 
30.2 	transportation director, or (3) an employee providing direct transportation services such as 
30.3 	a bus driver or bus aide.
30.4 	(c) Salaries and fringe benefits of other the district employees listed in paragraph 
30.5 	(b), clauses (1), (2), and (3), who work part time in transportation and part time in other 
30.6 	areas must not be included in a district's transportation expenditures unless the district 
30.7 	maintains documentation of the employee's time spent on pupil transportation matters in 
30.8 	the form and manner prescribed by the department.
30.9 	(d) Pupil transportation expenditures, excluding expenditures for capital outlay, 
30.10 	leased buses, student board and lodging, crossing guards, and aides on buses, must 
30.11 	be allocated among transportation categories based on cost-per-mile, cost-per-student, 
30.12 	cost-per-hour, or cost-per-route, regardless of whether the transportation services are 
30.13 	provided on district-owned or contractor-owned school buses. Expenditures for school 
30.14 	bus driver salaries and fringe benefits may either be directly charged to the appropriate 
30.15 	transportation category or may be allocated among transportation categories based 
30.16 	on cost-per-mile, cost-per-student, cost-per-hour, or cost-per-route. Expenditures 
30.17 	by private contractors or individuals who provide transportation exclusively in one 
30.18 	transportation category must be charged directly to the appropriate transportation category. 
30.19 	Transportation services provided by contractor-owned school bus companies incorporated 
30.20 	under different names but owned by the same individual or group of individuals must be 
30.21 	treated as the same company for cost allocation purposes.

30.22 	EFFECTIVE DATE. This section is effective for fiscal year 2006. 

30.23 	Sec. 18. Minnesota Statutes 2004, section 124D.095, subdivision 3, is amended to read:
30.24 		Subd. 3.Authorization; notice; limitations on enrollment. (a) A student may 
30.25 	apply to an on-line learning provider to enroll in on-line learning. A student age 17 or 
30.26 	younger must have the written consent of a parent or guardian to apply. No school district 
30.27 	or charter school may prohibit a student from applying to enroll in on-line learning. An 
30.28 	on-line learning provider that accepts a student under this section must, within ten days, 
30.29 	notify the student and the enrolling district if the enrolling district is not the on-line 
30.30 	learning provider. The notice must report the student's course or program and hours 
30.31 	of instruction.
30.32 	(b) An on-line learning student must notify the enrolling district at least 30 45
30.33 	days before taking an on-line learning course or program if the enrolling district is not 
30.34 	providing the on-line learning. An on-line learning provider must notify the commissioner 
31.1 	that it is delivering on-line learning and report the number of on-line learning students it is 
31.2 	accepting and the on-line learning courses and programs it is delivering.
31.3 	(c) An on-line learning provider may limit enrollment if the provider's school board 
31.4 	or board of directors adopts by resolution specific standards for accepting and rejecting 
31.5 	students' applications.
31.6 	(d) An enrolling district may reduce an on-line learning student's regular classroom 
31.7 	instructional membership in proportion to the student's membership in on-line learning 
31.8 	courses.

31.9 	Sec. 19. Minnesota Statutes 2005 Supplement, section 124D.095, subdivision 4, 
31.10 	is amended to read:
31.11 		Subd. 4.Online learning parameters. (a) An online learning student must receive 
31.12 	academic credit for completing the requirements of an online learning course or program. 
31.13 	Secondary credits granted to an online learning student must be counted toward the 
31.14 	graduation and credit requirements of the enrolling district. The enrolling district must 
31.15 	apply the same graduation requirements to all students, including online learning students, 
31.16 	and must continue to provide nonacademic services to online learning students. If a 
31.17 	student completes an online learning course or program that meets or exceeds a graduation 
31.18 	standard or grade progression requirement at the enrolling district, that standard or 
31.19 	requirement is met. The enrolling district must use the same criteria for accepting online 
31.20 	learning credits or courses as it does for accepting credits or courses for transfer students 
31.21 	under section 124D.03, subdivision 9. The enrolling district may reduce the teacher 
31.22 	contact time of an online learning student in proportion to the number of online learning 
31.23 	courses the student takes from an online learning provider that is not the enrolling district.
31.24 	(b) An online learning student may:
31.25 	(1) enroll during a single school year in a maximum of 12 semester-long courses or 
31.26 	their equivalent delivered by an online learning provider or the enrolling district;
31.27 	(2) complete course work at a grade level that is different from the student's current 
31.28 	grade level; and
31.29 	(3) enroll in additional courses with the online learning provider under a separate 
31.30 	agreement that includes terms for payment of any tuition or course fees.
31.31 	(c) A student with a disability may enroll in an online learning course or program 
31.32 	if the student's IEP team determines that online learning is appropriate education for 
31.33 	the student.
31.34 	(d)(c) An online learning student has the same access to the computer hardware 
31.35 	and education software available in a school as all other students in the enrolling district. 
32.1 	An online learning provider must assist an online learning student whose family qualifies 
32.2 	for the education tax credit under section 290.0674 to acquire computer hardware and 
32.3 	educational software for online learning purposes.
32.4 	(e)(d) An enrolling district may offer online learning to its enrolled students. 
32.5 	Such online learning does not generate online learning funds under this section. An 
32.6 	enrolling district that offers online learning only to its enrolled students is not subject 
32.7 	to the reporting requirements or review criteria under subdivision 7. A teacher with a 
32.8 	Minnesota license must assemble and deliver instruction to enrolled students receiving 
32.9 	online learning from an enrolling district. The delivery of instruction occurs when the 
32.10 	student interacts with the computer or the teacher and receives ongoing assistance and 
32.11 	assessment of learning. The instruction may include curriculum developed by persons 
32.12 	other than a teacher with a Minnesota license.
32.13 	(f)(e) An online learning provider that is not the enrolling district is subject to 
32.14 	the reporting requirements and review criteria under subdivision 7. A teacher with a 
32.15 	Minnesota license must assemble and deliver instruction to online learning students. The 
32.16 	delivery of instruction occurs when the student interacts with the computer or the teacher 
32.17 	and receives ongoing assistance and assessment of learning. The instruction may include 
32.18 	curriculum developed by persons other than a teacher with a Minnesota license. Unless 
32.19 	the commissioner grants a waiver, a teacher providing online learning instruction must not 
32.20 	instruct more than 40 students in any one online learning course or program.

32.21 	Sec. 20. Minnesota Statutes 2004, section 124D.096, is amended to read:
32.22 	124D.096 ON-LINE LEARNING AID.
32.23 	(a) The on-line learning aid for an on-line learning provider equals the product 
32.24 	of the adjusted on-line learning average daily membership for students under section  
32.25 	124D.095, subdivision 8, paragraph (d), times the student grade level weighting under 
32.26 	section  126C.05, subdivision 1, times the formula allowance. 
32.27 	(b) Notwithstanding section  127A.45, the department must pay each on-line learning 
32.28 	provider 80 percent of the current year aid payment percentage multiplied by the amount 
32.29 	in paragraph (a) within 45 days of receiving final enrollment and course completion 
32.30 	information each quarter or semester. A final payment equal to 20 percent of the amount in 
32.31 	paragraph (a) The final adjustment payment must be the amount of the actual entitlement, 
32.32 	after adjustment for actual data, minus the payments made during the fiscal year of the 
32.33 	entitlement. This payment must be made on September 30 of the next fiscal year. 

32.34 	Sec. 21. Minnesota Statutes 2004, section 124D.10, subdivision 16, is amended to read:
33.1 		Subd. 16.Transportation. (a) By July 1 of eachyear, a charter schoolA charter 
33.2 	school after its first fiscal year of operation by March 1 of each fiscal year and a charter 
33.3 	school by July 1 of its first fiscal year of operation must notify the district in which the 
33.4 	school is located and the Department of Education if it will provide transportation for 
33.5 	pupils enrolled in the school its own transportation or use the transportation services of the 
33.6 	district in which it is located for the fiscal year.
33.7 	(b) If a charter school elects to provide transportation for pupils, the transportation 
33.8 	must be provided by the charter school within the district in which the charter school is 
33.9 	located. The state must pay transportation aid to the charter school according to section  
33.10 	124D.11, subdivision 2. 
33.11 	For pupils who reside outside the district in which the charter school is located, the 
33.12 	charter school is not required to provide or pay for transportation between the pupil's 
33.13 	residence and the border of the district in which the charter school is located. A parent 
33.14 	may be reimbursed by the charter school for costs of transportation from the pupil's 
33.15 	residence to the border of the district in which the charter school is located if the pupil is 
33.16 	from a family whose income is at or below the poverty level, as determined by the federal 
33.17 	government. The reimbursement may not exceed the pupil's actual cost of transportation 
33.18 	or 15 cents per mile traveled, whichever is less. Reimbursement may not be paid for 
33.19 	more than 250 miles per week.
33.20 	At the time a pupil enrolls in a charter school, the charter school must provide the 
33.21 	parent or guardian with information regarding the transportation.
33.22 	(c) If a charter school does not elect to provide transportation, transportation for 
33.23 	pupils enrolled at the school must be provided by the district in which the school is 
33.24 	located, according to sections  123B.88, subdivision 6, and  124D.03, subdivision 8, for a 
33.25 	pupil residing in the same district in which the charter school is located. Transportation 
33.26 	may be provided by the district in which the school is located, according to sections  
33.27 	123B.88, subdivision 6, and  124D.03, subdivision 8, for a pupil residing in a different 
33.28 	district. If the district provides the transportation, the scheduling of routes, manner and 
33.29 	method of transportation, control and discipline of the pupils, and any other matter relating 
33.30 	to the transportation of pupils under this paragraph shall be within the sole discretion, 
33.31 	control, and management of the district. 

33.32 	Sec. 22. Minnesota Statutes 2004, section 124D.11, subdivision 9, is amended to read:
33.33 		Subd. 9.Payment of aids to charter schools. (a) Notwithstanding section  127A.45, 
33.34 	subdivision 3, aid payments for the current fiscal year to a charter school not in its first 
33.35 	year of operation shall be of an equal amount on each of the 23 payment dates. A charter 
34.1 	school in its first year of operation shall receive, on its first payment date, ten percent of its 
34.2 	cumulative amount guaranteed for the year and 22 payments of an equal amount thereafter 
34.3 	the sum of which shall be 90 percent of equal the current year aid payment percentage 
34.4 	multiplied by the cumulative amount guaranteed. 
34.5 	(b) Notwithstanding paragraph (a), for a charter school ceasing operation prior to the 
34.6 	end of a school year, 80 percent of the current year aid payment percentage multiplied by 
34.7 	 the amount due for the school year may be paid to the school after audit of prior fiscal year 
34.8 	and current fiscal year pupil counts. For a charter school ceasing operations prior to, or at 
34.9 	the end of, a school year, notwithstanding section 127A.45, subdivision 3, preliminary 
34.10 	final payments may be made after audit of pupil counts, monitoring of special education 
34.11 	expenditures, and documentation of lease expenditures for the final year of operation. 
34.12 	Final payment may be made upon receipt of audited financial statements under section 
34.13 	123B.77, subdivision 3.
34.14 	(c) Notwithstanding section  127A.45, subdivision 3, and paragraph (a), 80 percent 
34.15 	of the start-up cost aid under subdivision 8 shall be paid within 45 days after the first day 
34.16 	of student attendance for that school year. 
34.17 	(d) In order to receive state aid payments under this subdivision, a charter school in 
34.18 	its first three years of operation must submit a school calendar in the form and manner 
34.19 	requested by the department and a quarterly report to the Department of Education. The 
34.20 	report must list each student by grade, show the student's start and end dates, if any, 
34.21 	with the charter school, and for any student participating in a learning year program, 
34.22 	the report must list the hours and times of learning year activities. The report must be 
34.23 	submitted not more than two weeks after the end of the calendar quarter to the department. 
34.24 	The department must develop a Web-based reporting form for charter schools to use 
34.25 	when submitting enrollment reports. A charter school in its fourth and subsequent year of 
34.26 	operation must submit a school calendar and enrollment information to the department in 
34.27 	the form and manner requested by the department.
34.28 	(e) Notwithstanding sections 317A.701 to 317A.791, upon closure of a charter 
34.29 	school and satisfaction of creditors, cash and investment balances remaining shall be 
34.30 	returned to the state.

34.31 	Sec. 23. Minnesota Statutes 2004, section 124D.61, is amended to read:
34.32 	124D.61 GENERAL REQUIREMENTS FOR PROGRAMS.
34.33 	A district which receives aid pursuant to section  124D.65 must comply with that 
34.34 	enrolls one or more children of limited English proficiency must implement an educational 
34.35 	program that includes at a minimum the following program requirements: 
35.1 	(1) identification and reclassification criteria for children of limited English 
35.2 	proficiency and program entrance and exit criteria for children with limited English 
35.3 	proficiency must be documented by the district, applied uniformly to children of limited 
35.4 	English proficiency, and made available to parents and other stakeholders upon request;
35.5 	(2) a written plan of services that describes programming by English proficiency 
35.6 	level made available to parents upon request. The plan must articulate the amount and 
35.7 	scope of service offered to children of limited English proficiency through an educational 
35.8 	program for children of limited English proficiency;
35.9 	(3) professional development opportunities for ESL, bilingual education, 
35.10 	mainstream, and all staff working with children of limited English proficiency which are: 
35.11 	(i) coordinated with the district's professional development activities; (ii) related to the 
35.12 	needs of children of limited English proficiency; and (iii) ongoing;
35.13 	(4) to the extent possible, the district must avoid isolating children of limited English 
35.14 	proficiency for a substantial part of the school day; and
35.15 	(2) (5) in predominantly nonverbal subjects, such as art, music, and physical 
35.16 	education, permit pupils of limited English proficiency shall be permitted to participate 
35.17 	fully and on an equal basis with their contemporaries in public school classes provided 
35.18 	for these subjects. To the extent possible, the district must assure to pupils enrolled in a 
35.19 	program for limited English proficient students an equal and meaningful opportunity to 
35.20 	participate fully with other pupils in all extracurricular activities.

35.21 	Sec. 24. Minnesota Statutes 2004, section 125A.02, subdivision 1, is amended to read:
35.22 		Subdivision 1.Child with a disability. Every child who has a hearing impairment, 
35.23 	blindness, visual disability, speech or language impairment, physical handicap, other 
35.24 	health impairment, mental handicap, emotional/behavioral disorder, specific learning 
35.25 	disability, autism, traumatic brain injury, multiple disabilities, or deaf/blind disability and 
35.26 	needs special instruction and services, as determined by the standards of the commissioner, 
35.27 	is a child with a disability. In addition, every child under age three, and at local district 
35.28 	discretion from age three to age seven, who needs special instruction and services, as 
35.29 	determined by the standards of the commissioner, because the child has a substantial delay 
35.30 	or has an identifiable physical or mental condition known to hinder normal development is 
35.31 	a child with a disability.

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

35.33 	Sec. 25. Minnesota Statutes 2004, section 125A.75, is amended by adding a 
35.34 	subdivision to read:
36.1 		Subd. 9.Litigation costs; annual report. (a) By November 30 of each year, 
36.2 	a school district must annually report the district's special education litigation costs, 
36.3 	including attorney fees and costs of due process hearings, to the commissioner of 
36.4 	education, consistent with the Uniform Financial Accounting and Reporting Standards.
36.5 	(b) By January 15 of each year, the commissioner shall report school district special 
36.6 	education litigation costs to the house of representatives and the senate committees having 
36.7 	jurisdiction over kindergarten through grade 12 education finance.

36.8 	Sec. 26. Minnesota Statutes 2004, section 169.01, subdivision 6, is amended to read:
36.9 		Subd. 6.School bus. "School bus" means a motor vehicle used to transport pupils 
36.10 	to or from a school defined in section  120A.22, or to or from school-related activities, by 
36.11 	the school or a school district, or by someone under an agreement with the school or a 
36.12 	school district. A school bus does not include a motor vehicle transporting children to or 
36.13 	from school for which parents or guardians receive direct compensation from a school 
36.14 	district, a motor coach operating under charter carrier authority, a transit bus providing 
36.15 	services as defined in section  174.22, subdivision 7, a multifunction school activity bus 
36.16 	as defined by federal motor vehicle safety standards, or a vehicle otherwise qualifying 
36.17 	as a type III vehicle under paragraph (5), when the vehicle is properly registered and 
36.18 	insured and being driven by an employee or agent of a school district for nonscheduled 
36.19 	or nonregular transportation. A school bus may be type A, type B, type C, or type D, or 
36.20 	type III as follows: 
36.21 	(1) A "type A school bus" is a van conversion or bus constructed utilizing a cutaway 
36.22 	front section vehicle with a left-side driver's door. The entrance door is behind the front 
36.23 	wheels. This definition includes two classifications: type A-I, with a gross vehicle weight 
36.24 	rating (GVWR) less than or equal to 10,000 14,500 pounds or less; and type A-II, with a 
36.25 	GVWR greater than 10,000 14,500 pounds and less than or equal to 21,500 pounds.
36.26 	(2) A "type B school bus" is constructed utilizing a stripped chassis. The entrance 
36.27 	door is behind the front wheels. This definition includes two classifications: type B-I, 
36.28 	with a GVWR less than or equal to 10,000 pounds; and type B-II, with a GVWR greater 
36.29 	than 10,000 pounds.
36.30 	(3) A "type C school bus" is constructed utilizing a chassis with a hood and front 
36.31 	fender assembly. The entrance door is behind the front wheels. A "type C school bus" also 
36.32 	includes a cutaway truck chassis or truck chassis with cab with or without a left side door 
36.33 	and with a GVWR greater than 21,500 pounds. 
36.34 	(4) A "type D school bus" is constructed utilizing a stripped chassis. The entrance 
36.35 	door is ahead of the front wheels.
37.1 	(5) Type III school buses and type III Head Start buses are restricted to passenger 
37.2 	cars, station wagons, vans, and buses having a maximum manufacturer's rated seating 
37.3 	capacity of ten or fewer people, including the driver, and a gross vehicle weight rating of 
37.4 	10,000 pounds or less. In this subdivision, "gross vehicle weight rating" means the value 
37.5 	specified by the manufacturer as the loaded weight of a single vehicle. A "type III school 
37.6 	bus" and "type III Head Start bus" must not be outwardly equipped and identified as a type 
37.7 	A, B, C, or D school bus or type A, B, C, or D Head Start bus. A van or bus converted to a 
37.8 	seating capacity of ten or fewer and placed in service on or after August 1, 1999, must 
37.9 	have been originally manufactured to comply with the passenger safety standards.

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

37.11 	Sec. 27. Minnesota Statutes 2004, section 169.447, subdivision 2, is amended to read:
37.12 		Subd. 2.Driver seat belt. New School buses and Head Start buses manufactured 
37.13 	after December 31, 1994, must be equipped with driver seat belts and seat belt assemblies 
37.14 	of the type described in section  169.685, subdivision 3. School bus drivers and Head 
37.15 	Start bus drivers must use these seat belts. 

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

37.17 	Sec. 28. Minnesota Statutes 2004, section 169.4501, subdivision 1, is amended to read:
37.18 		Subdivision 1.National standards adopted. Except as provided in sections  
37.19 	169.4502 and  169.4503, the construction, design, equipment, and color of types A, 
37.20 	B, C, and D school buses used for the transportation of school children shall meet the 
37.21 	requirements of the "bus chassis standards" and "bus body standards" in the 2000 2005
37.22 	edition of the "National School Transportation Specifications and Procedures" adopted 
37.23 	by the National Conference Congress on School Transportation. Except as provided 
37.24 	in section  169.4504, the construction, design, and equipment of types A, B, C, and D 
37.25 	school buses used for the transportation of students with disabilities also shall meet the 
37.26 	requirements of the "specially equipped school bus standards" in the 2000 2005 National 
37.27 	School Transportation Specifications and Procedures. The "bus chassis standards," "bus 
37.28 	body standards," and "specially equipped school bus standards" sections of the 2000
37.29 	2005 edition of the "National School Transportation Specifications and Procedures" are 
37.30 	incorporated by reference in this chapter. 

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

37.32 	Sec. 29. Minnesota Statutes 2004, section 169.4501, subdivision 2, is amended to read:
38.1 		Subd. 2.Applicability. (a) The standards adopted in this section and sections  
38.2 	169.4502 and  169.4503, govern the construction, design, equipment, and color of school 
38.3 	buses used for the transportation of school children, when owned or leased and operated 
38.4 	by a school or privately owned or leased and operated under a contract with a school. 
38.5 	Each school, its officers and employees, and each person employed under the contract is 
38.6 	subject to these standards. 
38.7 	(b) The standards apply to school buses manufactured after October 31, 2004
38.8 	December 31, 2006. Buses complying with the standards when manufactured need not 
38.9 	comply with standards established later except as specifically provided for by law.
38.10 	(c) A school bus manufactured on or before October 31, 2004 December 31, 
38.11 	2006, must conform to the Minnesota standards in effect on the date the vehicle was 
38.12 	manufactured except as specifically provided for in law.
38.13 	(d) A new bus body may be remounted on a used chassis provided that the remounted 
38.14 	vehicle meets state and federal standards for new buses which are current at the time of the 
38.15 	remounting. Permission must be obtained from the commissioner of public safety before 
38.16 	the remounting is done. A used bus body may not be remounted on a new or used chassis.

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

38.18 	Sec. 30. Minnesota Statutes 2004, section 169.4502, subdivision 5, is amended to read:
38.19 		Subd. 5.Electrical system; battery. (a) The storage battery, as established by the 
38.20 	manufacturer's rating, must be of sufficient capacity to care for starting, lighting, signal 
38.21 	devices, heating, and other electrical equipment. In a bus with a gas-powered chassis, the 
38.22 	battery or batteries must provide a minimum of 800 cold cranking amperes. In a bus 
38.23 	with a diesel-powered chassis, the battery or batteries must provide a minimum of 1050 
38.24 	cold cranking amperes.
38.25 	(b) In a type B bus with a gross vehicle weight rating of 15,000 pounds or more, and 
38.26 	type C and D buses, the battery shall be temporarily mounted on the chassis frame. The 
38.27 	final location of the battery and the appropriate cable lengths in these buses must comply 
38.28 	with the SBMI design objectives booklet.
38.29 	(c) All batteries shall be mounted according to chassis manufacturers' 
38.30 	recommendations.
38.31 	(d) In a type C bus, other than are powered by diesel fuel, a battery providing at least 
38.32 	550 cold cranking amperes may be installed in the engine compartment only if used in 
38.33 	combination with a generator or alternator of at least 120 130 amperes.
38.34 	(e) A bus with a gross vehicle weight rating of 15,000 pounds or less may be 
38.35 	equipped with a battery to provide a minimum of 550 cold cranking amperes only if used 
39.1 	in combination with an alternator of at least 80 130 amperes. This paragraph does not 
39.2 	apply to those buses with wheelchair lifts or diesel engines.

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

39.4 	Sec. 31. Minnesota Statutes 2004, section 169.4503, subdivision 20, is amended to 
39.5 	read:
39.6 		Subd. 20.Seat and crash barriers. (a) All restraining barriers and passenger seats 
39.7 	shall be covered with a material that has fire retardant or fire block characteristics.
39.8 	(b) All seats must have a minimum cushion depth of 15 inches and a seat back 
39.9 	height of at least 20 inches above the seating reference point. 

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

39.11 	Sec. 32. Minnesota Statutes 2004, section 171.321, subdivision 4, is amended to read:
39.12 		Subd. 4.Training. (a) No person shall drive a class A, B, C, or D school bus when 
39.13 	transporting school children to or from school or upon a school-related trip or activity 
39.14 	without having demonstrated sufficient skills and knowledge to transport students in 
39.15 	a safe and legal manner.
39.16 	(b) A bus driver must have training or experience that allows the driver to meet at 
39.17 	least the following competencies:
39.18 	(1) safely operate the type of school bus the driver will be driving;
39.19 	(2) understand student behavior, including issues relating to students with 
39.20 	disabilities;
39.21 	(3) encourage orderly conduct of students on the bus and handle incidents of 
39.22 	misconduct appropriately;
39.23 	(4) know and understand relevant laws, rules of the road, and local school bus 
39.24 	safety policies;
39.25 	(5) handle emergency situations; and
39.26 	(6) safely load and unload students.
39.27 	(c) The commissioner of public safety shall develop a comprehensive model 
39.28 	school bus driver training program and model assessments for school bus driver training 
39.29 	competencies, which are not subject to chapter 14. A school district, nonpublic school, or 
39.30 	private contractor  may use alternative assessments for bus driver training competencies 
39.31 	with the approval of the commissioner of public safety. After completion of bus driver 
39.32 	training competencies, a driver may receive at least eight hours of school bus in-service 
39.33 	training any year as an alternative to being assessed for bus driver competencies. The 
40.1 	employer shall keep the assessment and a record of the in-service training for the current 
40.2 	period available for inspection by representatives of the commissioner.

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

40.4 	Sec. 33. Minnesota Statutes 2004, section 171.321, subdivision 5, is amended to read:
40.5 		Subd. 5.Annual evaluation and license verification. (a) A school district, 
40.6 	nonpublic school, or private contractor shall provide in-service training annually by June 
40.7 	30 of each year to each school bus driver.
40.8 	(b) A school district, nonpublic school, or private contractor shall annually by June 
40.9 	30 of each year  verify the validity of the driver's license of each employee who regularly 
40.10 	transports students for the district in a type A school bus, a type B school bus, a type C 
40.11 	school bus, or type D school bus, or regularly transports students for the district in a type 
40.12 	III vehicle with the National Driver Register or with the Department of Public Safety.
40.13 	(c) Members of a nonprofit bus drivers' trade association under private contract 
40.14 	with an independent school district shall not be charged a fee greater than the fee, if any, 
40.15 	imposed upon an independent school district for accessing an employee's driver's license 
40.16 	records from the Department of Public Safety in compliance with this section.

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

40.18 	Sec. 34. Minnesota Statutes 2004, section 299F.30, is amended to read:
40.19 	299F.30 FIRE DRILL IN SCHOOL; DOORS AND EXITS.
40.20 		Subdivision 1.Duties of fire marshal. Consistent with this section and section 
40.21 	121A.035, it shall be the duty of the state fire marshal, deputies and assistants, to require 
40.22 	public and private schools and educational institutions to have at least nine fire drills 
40.23 	each school year and to keep all doors and exits unlocked from the inside of the building 
40.24 	during school hours. The fire marshal must require nonpublic schools and educational 
40.25 	institutions not subject to section 121A.035 to have at least one fire drill each month 
40.26 	during the school year.
40.27 		Subd. 2.Fire drill. Each superintendent, principal or other person in charge of a 
40.28 	public or private school, educational institution, children's home or orphanage housing 20 
40.29 	or more students or other persons, shall instruct and train such students or other persons to 
40.30 	quickly and expeditiously quit the premises in case of fire or other emergency by means of 
40.31 	drills or rapid dismissals at least once each month while such school, institution, home or 
40.32 	orphanage is in operation. Records of such drills shall be posted so that such records are 
41.1 	available for review by the state fire marshal at all times and shall include the drill date 
41.2 	and the time required to evacuate the building.
41.3 		Subd. 3.School doors and exits. Consistent with this section and section 
41.4 	121A.035, each superintendent, principal or other person in charge of a public or private 
41.5 	school, educational institution, children's home or orphanage shall keep all doors and exits 
41.6 	of such school, institution, home or orphanage unlocked so that persons can leave by such 
41.7 	doors or exits at any time during the hours of normal operation.

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

41.10 	Sec. 35. Minnesota Statutes 2005 Supplement, section 626.556, subdivision 3, is 
41.11 	amended to read:
41.12 		Subd. 3.Persons mandated to report. (a) Subject to paragraph (c), a person who 
41.13 	knows or has reason to believe a child is being neglected or physically or sexually abused, 
41.14 	as defined in subdivision 2, or has been neglected or physically or sexually abused within 
41.15 	the preceding three years, shall immediately report the information to the local welfare 
41.16 	agency, agency responsible for assessing or investigating the report, police department, or 
41.17 	the county sheriff if the person is:
41.18 	(1) a professional or professional's delegate who is engaged in the practice of 
41.19 	the healing arts, social services, hospital administration, psychological or psychiatric 
41.20 	treatment, child care, education, correctional supervision, probation and correctional 
41.21 	services, or law enforcement; or
41.22 	(2) employed as a member of the clergy and received the information while 
41.23 	engaged in ministerial duties, provided that a member of the clergy is not required by 
41.24 	this subdivision to report information that is otherwise privileged under section 595.02, 
41.25 	subdivision 1, paragraph (c).
41.26 	The police department or the county sheriff, upon receiving a report, shall 
41.27 	immediately notify the local welfare agency or agency responsible for assessing or 
41.28 	investigating the report, orally and in writing. The local welfare agency, or agency 
41.29 	responsible for assessing or investigating the report, upon receiving a report, shall 
41.30 	immediately notify the local police department or the county sheriff orally and in writing. 
41.31 	The county sheriff and the head of every local welfare agency, agency responsible for 
41.32 	assessing or investigating reports, and police department shall each designate a person 
41.33 	within their agency, department, or office who is responsible for ensuring that the 
41.34 	notification duties of this paragraph and paragraph (b) are carried out. Nothing in this 
41.35 	subdivision shall be construed to require more than one report from any institution, facility, 
42.1 	school, or agency. If the agency receiving a report determines that it is not responsible for 
42.2 	assessing or investigating the report, the agency shall immediately notify the agency it 
42.3 	determines is responsible for assessing or investigating the report under this section.
42.4 	(b) Any person may voluntarily report to the local welfare agency, agency 
42.5 	responsible for assessing or investigating the report, police department, or the county 
42.6 	sheriff if the person knows, has reason to believe, or suspects a child is being or has been 
42.7 	neglected or subjected to physical or sexual abuse. The police department or the county 
42.8 	sheriff, upon receiving a report, shall immediately notify the local welfare agency or 
42.9 	agency responsible for assessing or investigating the report, orally and in writing. The 
42.10 	local welfare agency or agency responsible for assessing or investigating the report, upon 
42.11 	receiving a report, shall immediately notify the local police department or the county 
42.12 	sheriff orally and in writing.
42.13 	(c) A person mandated to report physical or sexual child abuse or neglect occurring 
42.14 	within a licensed facility or a school as defined under subdivision 3b, shall report the 
42.15 	information to the agency responsible for licensing the facility under sections 144.50 to 
42.16 	144.58; 241.021; 245A.01 to 245A.16; or chapter 245B; or a nonlicensed personal care 
42.17 	provider organization as defined in sections 256B.04, subdivision 16; and 256B.0625, 
42.18 	subdivision 19, or to the agency responsible for assessing or investigating the report, if the 
42.19 	facility is not licensed. A health or corrections agency receiving a report may request the 
42.20 	local welfare agency to provide assistance pursuant to subdivisions 10, 10a, and 10b. A 
42.21 	board or other entity whose licensees perform work within a school facility, upon receiving 
42.22 	a complaint of alleged maltreatment, shall provide information about the circumstances of 
42.23 	the alleged maltreatment to the commissioner of education. Section 13.03, subdivision 4, 
42.24 	applies to data received by the commissioner of education from a licensing entity.
42.25 	(d) Any person mandated to report shall receive a summary of the disposition of 
42.26 	any report made by that reporter, including whether the case has been opened for child 
42.27 	protection or other services, or if a referral has been made to a community organization, 
42.28 	unless release would be detrimental to the best interests of the child. Any person who is 
42.29 	not mandated to report shall, upon request to the local welfare agency, receive a concise 
42.30 	summary of the disposition of any report made by that reporter, unless release would be 
42.31 	detrimental to the best interests of the child.
42.32 	(e) For purposes of this subdivision, "immediately" means as soon as possible but in 
42.33 	no event longer than 24 hours.

42.34 	Sec. 36. Minnesota Statutes 2004, section 626.556, subdivision 3b, is amended to read:
43.1 		Subd. 3b.AgencyDepartment of Education responsible for assessing or 
43.2 	investigating reports of maltreatment. The Department of Education is the agency 
43.3 	responsible for assessing or investigating allegations of child maltreatment in schools 
43.4 	as defined in sections  120A.05, subdivisions 9, 11, and 13; 120A.05, subdivisions 9, 
43.5 	11, 13, and 17, and  124D.10, unless the alleged maltreatment occurred in a program or 
43.6 	facility licensed by the commissioner of human services. "School" includes a school-age 
43.7 	care program, Head Start program, early childhood family education program, school 
43.8 	district-administered day treatment facility, or other program licensed or administered 
43.9 	by the commissioner of education that provides services for minors and is located in 
43.10 	or operated by a school. 

43.11 	Sec. 37. Minnesota Statutes 2004, section 626.556, subdivision 3c, is amended to read:
43.12 		Subd. 3c.Agency Local welfare agency, Department of Human Services, 
43.13 	or Department of Health responsible for assessing or investigating reports of 
43.14 	maltreatment. The following agencies are the administrative agencies responsible for 
43.15 	assessing or investigating reports of alleged child maltreatment in facilities made under 
43.16 	this section:
43.17 	(1)(a) The county local welfare agency is the agency responsible for assessing or 
43.18 	investigating:
43.19 	(1) allegations of maltreatment in child foster care, family child care, and legally 
43.20 	unlicensed child care and in juvenile correctional facilities licensed under section  241.021
43.21 	located in the local welfare agency's county; and
43.22 	(2) other allegations of maltreatment that are not the responsibility of another agency 
43.23 	under this subdivision or subdivision 3b.
43.24 	(2)(b) The Department of Human Services is the agency responsible for assessing 
43.25 	or investigating allegations of maltreatment in facilities licensed under chapters 245A and 
43.26 	245B, except for child foster care and family child care; and.
43.27 	(3)(c) The Department of Health is the agency responsible for assessing or 
43.28 	investigating allegations of child maltreatment in facilities licensed under sections  144.50
43.29 	to  144.58, and in unlicensed home health care. 

43.30 	Sec. 38. Laws 2005, First Special Session chapter 5, article 2, section 84, subdivision 
43.31 	13, is amended to read:
43.32 	
43.33 	Subd. 13.  Examination fees; teacher training and support programs. (a) For 
43.34 	students' advanced placement and  international baccalaureate examination fees under 
44.1 	Minnesota  Statutes, section 120B.13, subdivision 3, and the training and  related costs 
44.2 	for teachers and other interested educators under  Minnesota Statutes, section 120B.13, 
44.3 	subdivision 1:  

44.4		$
	4,500,000
	.....
	2006
	
44.5		$
	4,500,000
	.....
	2007
	
44.6 	(b) The advanced placement program shall receive 75 percent  of the appropriation 
44.7 	each year and the international  baccalaureate program shall receive 25 percent of the  
44.8 	appropriation each year.  The department, in consultation with  representatives of the 
44.9 	advanced placement and international  baccalaureate programs selected by the Advanced 
44.10 	Placement  Advisory Council and IBMN, respectively, shall determine the  amounts of 
44.11 	the expenditures each year for examination fees and  training and support programs for 
44.12 	each program.  
44.13 	(c) Notwithstanding Minnesota Statutes, section 120B.13,  subdivision 1, at least 
44.14 	$500,000 each year is for teachers to  attend subject matter summer training programs 
44.15 	and follow-up  support workshops approved by the advanced placement or  international 
44.16 	baccalaureate programs. The amount of the subsidy  for each teacher attending an 
44.17 	advanced placement or  international baccalaureate summer training program or workshop 
44.18 	shall be the same.  The commissioner shall determine the payment  process and the amount 
44.19 	of the subsidy. Teachers shall apply for teacher training scholarships to prepare for 
44.20 	teaching in the advanced placement or international baccalaureate program. Any reserved 
44.21 	funding not expended for teacher training may be used for exam fees and other support 
44.22 	programs for each program.
44.23 	(d) The commissioner shall pay all examination fees for all  students of low-income 
44.24 	families under Minnesota Statutes,  section 120B.13, subdivision 3, and to the extent 
44.25 	of available  appropriations shall also pay examination fees for students  sitting for an 
44.26 	advanced placement examination, international  baccalaureate examination, or both.
44.27 	Any balance in the first year does not cancel but is  available in the second year.  

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

44.29 	Sec. 39. RULE ON VISUALLY IMPAIRED TO INCLUDE REFERENCES TO 
44.30 	"BLIND" AND "BLINDNESS."
 44.31 	The commissioner of education, where appropriate, must incorporate references to 
44.32 	"blind" and "blindness" into the definition of visually impaired under Minnesota Rules, 
44.33 	part 3525.1345, and amend the rule title to include the word "blind."

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

45.2 	Sec. 40. 2006 SCHOOL ACCOUNTABILITY REPORT.
 45.3 	Notwithstanding Minnesota Statutes, section 120B.36, for 2006 reporting only, the 
45.4 	Department of Education may delay the release to the public and the posting of the 2006 
45.5 	school performance report cards and adequate yearly progress data on its public Web 
45.6 	site to no later than November 30, 2006.

45.7 	Sec. 41. CHARACTER DEVELOPMENT EDUCATION; PILOT PROGRAM.
 45.8 		Subdivision 1.Pilot program created. School districts may develop a pilot 
45.9 	program to implement comprehensive character development education under Minnesota 
45.10 	Statutes, section 120B.232, subdivision 1.
45.11 		Subd. 2.Approved provider list. (a) Based upon available resources, the 
45.12 	commissioner of education shall maintain a character development education curriculum 
45.13 	approved provider list. The character development education curriculum of approved 
45.14 	providers shall be research based and evaluated by an independent party. Approved 
45.15 	comprehensive character development education curriculum must include:
45.16 	(1) age appropriate character development for the classroom in elementary or 
45.17 	secondary grades;
45.18 	(2) teacher training workshops and in-service training; 
45.19 	(3) midyear consulting between the school district and the provider; and
45.20 	(4) an assessment program.
45.21 	(b) Funding for the approved provider list shall be from existing department 
45.22 	resources under Minnesota Statutes, section 120B.232, subdivision 2.

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

45.24 	Sec. 42.  REPEALER.
 45.25 	(a) Minnesota Statutes 2004, sections 121A.23; and 123B.749, are repealed.
45.26 	(b) Minnesota Statutes 2004, sections 169.4502, subdivision 15; and 169.4503, 
45.27 	subdivisions 17, 18, and 26, are repealed.

45.28 	EFFECTIVE DATE. This section, paragraph (b), is effective January 1, 2007.

46.1 	ARTICLE 3
46.2 	SPECIAL EDUCATION

46.3 	Section 1. Minnesota Statutes 2005 Supplement, section 125A.11, subdivision 1, 
46.4 	is amended to read:
46.5 		Subdivision 1.Nonresident tuition rate; other costs. (a) For fiscal year 2006, 
46.6 	when a school district provides instruction and services outside the district of residence, 
46.7 	board and lodging, and any tuition to be paid, shall be paid by the district of residence. The 
46.8 	tuition rate to be charged for any child with a disability, excluding a pupil for whom tuition 
46.9 	is calculated according to section 127A.47, subdivision 7, paragraph (d), must be the sum 
46.10 	of (1) the actual cost of providing special instruction and services to the child including 
46.11 	a proportionate amount for special transportation and unreimbursed building lease and 
46.12 	debt service costs for facilities used primarily for special education, plus (2) the amount 
46.13 	of general education revenue and referendum aid attributable to the pupil, minus (3) the 
46.14 	amount of special education aid for children with a disability received on behalf of that 
46.15 	child, minus (4) if the pupil receives special instruction and services outside the regular 
46.16 	classroom for more than 60 percent of the school day, the amount of general education 
46.17 	revenue and referendum aid, excluding portions attributable to district and school 
46.18 	administration, district support services, operations and maintenance, capital expenditures, 
46.19 	and pupil transportation, attributable to that pupil for the portion of time the pupil receives 
46.20 	special instruction in and services outside of the regular classroom. If the boards involved 
46.21 	do not agree upon the tuition rate, either board may apply to the commissioner to fix the 
46.22 	rate. Notwithstanding chapter 14, the commissioner must then set a date for a hearing or 
46.23 	request a written statement from each board, giving each board at least ten days' notice, 
46.24 	and after the hearing or review of the written statements the commissioner must make an 
46.25 	order fixing the tuition rate, which is binding on both school districts. General education 
46.26 	revenue and referendum aid attributable to a pupil must be calculated using the resident 
46.27 	district's average general education and referendum revenue per adjusted pupil unit.
46.28 	(b) For fiscal year 2007 and later, when a school district provides special instruction 
46.29 	and services for a pupil with a disability as defined in section 125A.02 outside the district 
46.30 	of residence, excluding a pupil for whom an adjustment to special education aid is 
46.31 	calculated according to section 127A.47, subdivision 7, paragraph (e), special education 
46.32 	aid paid to the resident district must be reduced by an amount equal to (1) the actual 
46.33 	cost of providing special instruction and services to the pupil, including a proportionate 
46.34 	amount for special transportation and unreimbursed building lease and debt service costs 
46.35 	for facilities used primarily for special education, plus (2) the amount of general education 
47.1 	revenue and referendum aid attributable to that pupil, minus (3) the amount of special 
47.2 	education aid for children with a disability received on behalf of that child, minus (4) if the 
47.3 	pupil receives special instruction and services outside the regular classroom for more than 
47.4 	60 percent of the school day, the amount of general education revenue and referendum 
47.5 	aid, excluding portions attributable to district and school administration, district support 
47.6 	services, operations and maintenance, capital expenditures, and pupil transportation, 
47.7 	attributable to that pupil for the portion of time the pupil receives special instruction in
47.8 	and services outside of  the regular classroom. General education revenue and referendum 
47.9 	aid attributable to a pupil must be calculated using the resident district's average general 
47.10 	education revenue and referendum aid per adjusted pupil unit. Special education aid 
47.11 	paid to the district or cooperative providing special instruction and services for the pupil 
47.12 	must be increased by the amount of the reduction in the aid paid to the resident district. 
47.13 	Amounts paid to cooperatives under this subdivision and section 127A.47, subdivision 
47.14 	7, shall be recognized and reported as revenues and expenditures on the resident school 
47.15 	district's books of account under sections 123B.75 and 123B.76. If the resident district's 
47.16 	special education aid is insufficient to make the full adjustment, the remaining adjustment 
47.17 	shall be made to other state aid due to the district.
47.18 	(c) Notwithstanding paragraphs (a) and (b) and section 127A.47, subdivision 7, 
47.19 	paragraphs (d) and (e), a charter school where more than 30 percent of enrolled students 
47.20 	receive special education and related services, an intermediate district, or a special 
47.21 	education cooperative, or a school district that served as the applicant agency for a group 
47.22 	of school districts for federal special education aids for fiscal year 2006 may apply to the 
47.23 	commissioner for authority to charge the resident district an additional amount to recover 
47.24 	any remaining unreimbursed costs of serving pupils with a disability. The application must 
47.25 	include a description of the costs and the calculations used to determine the unreimbursed 
47.26 	portion to be charged to the resident district. Amounts approved by the commissioner 
47.27 	under this paragraph must be included in the tuition billings or aid adjustments under 
47.28 	paragraph (a) or (b), or section 127A.47, subdivision 7, paragraph (d) or (e), as applicable.
47.29 	(d) For purposes of this subdivision and section 127A.47, subdivision 7, paragraphs 
47.30 	(d) and (e), "general education revenue and referendum aid" means the sum of the general 
47.31 	education revenue according to section 126C.10, subdivision 1, excluding alternative 
47.32 	teacher compensation revenue, plus the referendum aid according to section 126C.17, 
47.33 	subdivision 7, as adjusted according to section 127A.47, subdivision 7, paragraphs (a) 
47.34 	to (c).

47.35 	EFFECTIVE DATE. This section is effective for fiscal year 2006.

48.1 	Sec. 2. Minnesota Statutes 2004, section 125A.515, subdivision 1, is amended to read:
48.2 		Subdivision 1.Approval of education programs. The commissioner shall 
48.3 	approve education programs for placement of children and youth in care and treatment
48.4 	residential facilities including detention centers, before being licensed by the Department 
48.5 	of Human Services under Minnesota Rules, parts 9545.0905 to 9545.1125 and 9545.1400 
48.6 	to 9545.1480, or the Department of Corrections under Minnesota Rules, chapters 2925, 
48.7 	2930, 2935, and 2950. Education programs in these facilities shall conform to state and 
48.8 	federal education laws including the Individuals with Disabilities Education Act (IDEA).
48.9 	This section applies only to placements in facilities licensed by the Department of Human 
48.10 	Services or the Department of Corrections.

48.11 	Sec. 3. Minnesota Statutes 2004, section 125A.515, subdivision 3, is amended to read:
48.12 		Subd. 3.Responsibilities for providing education. (a) The district in which the 
48.13 	residential facility is located must provide education services, including special education 
48.14 	if eligible, to all students placed in a facility for care and treatment.
48.15 	(b) For education programs operated by the Department of Corrections, the 
48.16 	providing district shall be the Department of Corrections. For students remanded to the 
48.17 	commissioner of corrections, the providing and resident district shall be the Department 
48.18 	of Corrections.
48.19 	(c) Placement for care and treatment does not automatically make a student eligible 
48.20 	for special education. A student placed in a care and treatment facility is eligible for 
48.21 	special education under state and federal law including the Individuals with Disabilities 
48.22 	Education Act under United States Code, title 20, chapter 33.

48.23 	Sec. 4. Minnesota Statutes 2004, section 125A.515, subdivision 5, is amended to read:
48.24 		Subd. 5.Education programs for students placed in residential facilities for 
48.25 	care and treatment. (a) When a student is placed in a care and treatment facility
48.26 	approved under this section that has an on-site education program, the providing district, 
48.27 	upon notice from the care and treatment facility, must contact the resident district within 
48.28 	one business day to determine if a student has been identified as having a disability, and 
48.29 	to request at least the student's transcript, and for students with disabilities, the most 
48.30 	recent individualized education plan (IEP) and evaluation report, and to determine if the 
48.31 	student has been identified as a student with a disability. The resident district must send a 
48.32 	facsimile copy to the providing district within two business days of receiving the request.
48.33 	(b) If a student placed for care and treatment under this section has been identified as 
48.34 	having a disability and has an individual education plan in the resident district:
49.1 	(1) the providing agency must conduct an individualized education plan meeting 
49.2 	to reach an agreement about continuing or modifying special education services in 
49.3 	accordance with the current individualized education plan goals and objectives and to 
49.4 	determine if additional evaluations are necessary; and
49.5 	(2) at least the following people shall receive written notice or documented phone 
49.6 	call to be followed with written notice to attend the individualized education plan meeting:
49.7 	(i) the person or agency placing the student;
49.8 	(ii) the resident district;
49.9 	(iii) the appropriate teachers and related services staff from the providing district;
49.10 	(iv) appropriate staff from the care and treatment residential facility;
49.11 	(v) the parents or legal guardians of the student; and
49.12 	(vi) when appropriate, the student.
49.13 	(c) For a student who has not been identified as a student with a disability, a 
49.14 	screening must be conducted by the providing districts as soon as possible to determine 
49.15 	the student's educational and behavioral needs and must include a review of the student's 
49.16 	educational records.

49.17 	Sec. 5. Minnesota Statutes 2004, section 125A.515, subdivision 6, is amended to read:
49.18 		Subd. 6.Exit report summarizing educational progress. If a student has been 
49.19 	placed in a care and treatment facility under this section for 15 or more business days, the 
49.20 	providing district must prepare an exit report summarizing the regular education, special 
49.21 	education, evaluation, educational progress, and service information and must send the 
49.22 	report to the resident district and the next providing district if different, the parent or 
49.23 	legal guardian, and any appropriate social service agency. For students with disabilities, 
49.24 	this report must include the student's IEP.

49.25 	Sec. 6. Minnesota Statutes 2004, section 125A.515, subdivision 7, is amended to read:
49.26 		Subd. 7.Minimum educational services required. When a student is placed in a 
49.27 	facility approved under this section, at a minimum, the providing district is responsible for:
49.28 	(1) the education necessary, including summer school services, for a student who is 
49.29 	not performing at grade level as indicated in the education record or IEP; and
49.30 	(2) a school day, of the same length as the school day of the providing district, unless 
49.31 	the unique needs of the student, as documented through the IEP or education record in 
49.32 	consultation with treatment providers, requires an alteration in the length of the school day.

49.33 	Sec. 7. Minnesota Statutes 2004, section 125A.515, subdivision 9, is amended to read:
50.1 		Subd. 9.Reimbursement for education services. (a) Education services 
50.2 	provided to students who have been placed for care and treatmentunder this section are 
50.3 	reimbursable in accordance with special education and general education statutes.
50.4 	(b) Indirect or consultative services provided in conjunction with regular education 
50.5 	prereferral interventions and assessment provided to regular education students suspected 
50.6 	of being disabled and who have demonstrated learning or behavioral problems in a 
50.7 	screening are reimbursable with special education categorical aids.
50.8 	(c) Regular education, including screening, provided to students with or without 
50.9 	disabilities is not reimbursable with special education categorical aids.

50.10 	Sec. 8. Minnesota Statutes 2004, section 125A.515, subdivision 10, is amended to read:
50.11 		Subd. 10.Students unable to attend school but not placed in care and treatment 
50.12 	facilities covered under this section. Students who are absent from, or predicted to 
50.13 	be absent from, school for 15 consecutive or intermittent days, and placed at home or 
50.14 	in facilities not licensed by the Departments of Corrections or Human Services are not 
50.15 	students placed for care and treatment entitled to regular and special education services 
50.16 	consistent with applicable law and rule. These students include students with and without 
50.17 	disabilities who are home due to accident or illness, in a hospital or other medical facility, 
50.18 	or in a day treatment center. These students are entitled to education services through 
50.19 	their district of residence.

50.20 	Sec. 9. Minnesota Statutes 2004, section 125A.63, subdivision 4, is amended to read:
50.21 		Subd. 4.Advisory committees. The Special Education Advisory Council
50.22 	commissioner  shall establish an advisory committee for each resource center. The 
50.23 	advisory committees shall develop recommendations regarding the resource centers and 
50.24 	submit an annual report to the commissioner on the form and in the manner prescribed by 
50.25 	the commissioner.

50.26 	Sec. 10. Minnesota Statutes 2004, section 125A.75, subdivision 1, is amended to read:
50.27 		Subdivision 1.Travel aid. The state must pay each district one-half of the sum 
50.28 	actually expended by a district, based on mileage,  for necessary travel of essential 
50.29 	personnel providing home-based services to children with a disability under age five 
50.30 	and their families.

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

51.1 	Sec. 11. Minnesota Statutes 2005 Supplement, section 125A.79, subdivision 1, is 
51.2 	amended to read:
51.3 		Subdivision 1.Definitions. For the purposes of this section, the definitions in this 
51.4 	subdivision apply.
51.5 	(a) "Unreimbursed special education cost" means the sum of the following:
51.6 	(1) expenditures for teachers' salaries, contracted services, supplies, equipment, and 
51.7 	transportation services eligible for revenue under section 125A.76; plus
51.8 	(2) expenditures for tuition bills received under sections 125A.03 to 125A.24 and 
51.9 	125A.65 for services eligible for revenue under section 125A.76, subdivision 2; minus
51.10 	(3) revenue for teachers' salaries, contracted services, supplies, and equipment under 
51.11 	section 125A.76; minus
51.12 	(4) tuition receipts under sections 125A.03 to 125A.24 and 125A.65 for services 
51.13 	eligible for revenue under section 125A.76, subdivision 2.
51.14 	(b) "General revenue" means the sum of the general education revenue according to 
51.15 	section 126C.10, subdivision 1, as adjusted according to section 127A.47, subdivisions 
51.16 	7 and 8excluding alternative teacher compensation revenue, plus the total qualifying 
51.17 	referendum revenue specified in paragraph (e) minus transportation sparsity revenue 
51.18 	minus total operating capital revenue.
51.19 	(c) "Average daily membership" has the meaning given it in section 126C.05.
51.20 	(d) "Program growth factor" means 1.02 for fiscal year 2003, and 1.0 for fiscal 
51.21 	year 2004 and later.
51.22 	(e) "Total qualifying referendum revenue" means two-thirds of the district's total 
51.23 	referendum revenue as adjusted according to section 127A.47, subdivision 7, paragraphs 
51.24 	(a) to (c), for fiscal year 2006, one-third of the district's total referendum revenue for fiscal 
51.25 	year 2007, and none of the district's total referendum revenue for fiscal year 2008 and later.

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

51.27 	Sec. 12. SPECIAL EDUCATION FORECAST MAINTENANCE OF EFFORT.
 51.28 	(a) If, on the basis of a forecast of general fund revenues and expenditures under 
51.29 	Minnesota Statutes, section 16A.103; expenditures for special education aid under 
51.30 	Minnesota Statutes, section 125A.76; transition for disabled students under Minnesota 
51.31 	Statutes, section 124D.454; travel for home-based services under Minnesota Statutes, 
51.32 	section 125A.75, subdivision 1; aid for students with disabilities under Minnesota Statutes, 
51.33 	section 125A.75, subdivision 3; court-placed special education under Minnesota Statutes, 
51.34 	section 125A.79, subdivision 4; or out-of-state tuition under Minnesota Statutes, section 
51.35 	125A.79, subdivision 8, are projected to be less than the amount previously forecast for an 
52.1 	enacted budget, the forecast excess from these programs, up to an amount sufficient to 
52.2 	meet federal special education maintenance of effort, is added to the state total special 
52.3 	education aid in Minnesota Statutes, section 125A.76, subdivision 4.
52.4 	(b) If, on the basis of a forecast of general fund revenues and expenditures under 
52.5 	Minnesota Statutes, section 16A.103, expenditures in the programs in this section are 
52.6 	projected to be greater than previously forecast for an enacted budget, and an addition to 
52.7 	state total special education aid has been made under paragraph (a), the state total special 
52.8 	education aid must be reduced by the lesser of the amount of the expenditure increase or 
52.9 	the amount previously added to state total special education aid, and this amount must be 
52.10 	taken from the programs that were forecast to have a forecast excess.
52.11 	(c) For the purpose of this section, "previously forecast for an enacted budget" means 
52.12 	the allocation of funding for these programs in the most recent forecast of general fund 
52.13 	revenues and expenditures or the act appropriating money for these programs, whichever 
52.14 	occurred most recently. It does not include planning estimates for a future biennium.

52.15 	Sec. 13. INTERMEDIATE DISTRICT SPECIAL EDUCATION TUITION 
52.16 	BILLING FOR FISCAL YEARS 2006 AND 2007.
 52.17 	(a) Notwithstanding Minnesota Statutes, sections 125A.11, subdivision 1, paragraph 
52.18 	(a), and 127A.47, subdivision 7, paragraph (d), for fiscal year 2006, an intermediate 
52.19 	district is not subject to the uniform special education tuition billing calculations, but may 
52.20 	instead continue to bill the resident school districts for the actual unreimbursed costs of 
52.21 	serving pupils with a disability as determined by the intermediate district.
52.22 	(b) Notwithstanding Minnesota Statutes, section 125A.11, subdivision 1, paragraph 
52.23 	(c), for fiscal year 2007 only, an intermediate district may apply to the commissioner of 
52.24 	education for a waiver from the uniform special education tuition calculations and aid 
52.25 	adjustments under Minnesota Statutes, sections 125A.11, subdivision 1, paragraph (b), and 
52.26 	127A.47, subdivision 7, paragraph (e). The commissioner must grant the waiver within 30 
52.27 	days of receiving the following information from the intermediate district:
52.28 	(1) a detailed description of the intermediate district's methodology for calculating 
52.29 	special education tuition for fiscal years 2006 and 2007, as required by the intermediate 
52.30 	district to recover the full cost of serving pupils with a disability;
52.31 	(2) sufficient data to determine the total amount of special education tuition actually 
52.32 	charged for each student with a disability, as required by the intermediate district to 
52.33 	recover the full cost of serving pupils with a disability in fiscal year 2006; and
52.34 	(3) sufficient data to determine the amount that would have been charged for each 
52.35 	student for fiscal year 2006 using the uniform tuition billing methodology according 
53.1 	to Minnesota Statutes, section 125A.11, subdivision 1, or 127A.47, subdivision 7, as 
53.2 	applicable.

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

53.5 	Sec. 14. DEPARTMENT OF EDUCATION RULES.
 53.6 	Before July 1, 2007, the Department of Education shall amend Minnesota Rules, 
53.7 	part 3525.2325, to conform with Minnesota Statutes, section 125A.515.

53.8 	Sec. 15.  REPEALER.
 53.9 	Minnesota Statutes 2004, sections 125A.10; and 125A.515, subdivision 2, are 
53.10 	repealed.

53.11 	ARTICLE 4
53.12 	FACILITIES, ACCOUNTING, AND TECHNOLOGY

53.13 	Section 1. Minnesota Statutes 2004, section 123A.44, is amended to read:
53.14 	123A.44 CITATION.
53.15 	Sections  123A.441 to  123A.446 may be cited as the "Cooperative Secondary
53.16 	Facilities Grant Act." 

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

53.18 	Sec. 2. Minnesota Statutes 2004, section 123A.441, is amended to read:
53.19 	123A.441 POLICY AND PURPOSE.
53.20 	Because of the rates of decline in school-aged population, population shifts and 
53.21 	economic changes that the state has experienced in recent years and anticipates in future 
53.22 	years, and because in some instances local districts have not, and will not be able to 
53.23 	provide the required construction funds through local property taxes, the purpose of the 
53.24 	cooperative secondary facilities grant program is to provide an incentive to encourage 
53.25 	cooperation in making available to all secondary students those educational programs, 
53.26 	services and facilities that are most efficiently and effectively provided by a cooperative 
53.27 	effort of several school districts. The policy and purpose of sections  123A.442 to  
53.28 	123A.446 is to use the credit of the state, to a limited degree, to provide grants to 
53.29 	cooperating groups of districts to improve and expand the educational opportunities and 
53.30 	facilities available to their secondary students. 

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

54.2 	Sec. 3. Minnesota Statutes 2004, section 123A.442, is amended to read:
54.3 	123A.442 APPROVAL AUTHORITY; APPLICATION FORMS.
54.4 		Subdivision 1.Approval by commissioner. To the extent money is available, the 
54.5 	commissioner may approve projects from applications submitted under section  123A.443. 
54.6 	The grant money must be used only to acquire, construct, remodel or improve the building 
54.7 	or site of a cooperative secondary facility under contracts to be entered into within 15 
54.8 	months after the date on which each grant is awarded. 
54.9 		Subd. 2.Cooperation and combination. Districts that have not already 
54.10 	consolidated and receive a cooperative secondary facilities grant after May 1, 1991, shall:
54.11 	(1) submit a consolidation plan as set forth in under section  123A.36 123A.48 for 
54.12 	approval by the State Board of Education before December 31, 1999, or Department of 
54.13 	Education after December 30, 1999; and 
54.14 	(2) hold a referendum on the question of combination consolidation no later than 
54.15 	four years after a grant is awarded under subdivision 1.
54.16 	The districts are eligible for cooperation and combination consolidation revenue 
54.17 	under section  123A.39, subdivision 3 123A.485. 
54.18 		Subd. 3.Consolidated districts. A school district that has consolidated with 
54.19 	another school district since July 1, 1980, is eligible for a cooperative facilities grant.

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

54.21 	Sec. 4. Minnesota Statutes 2004, section 123A.443, is amended to read:
54.22 	123A.443 GRANT APPLICATION PROCESS.
54.23 		Subdivision 1.Qualification. Any group of districts or a consolidated district 
54.24 	that meets the criteria required under subdivision 2 may apply for an incentive grant for 
54.25 	construction of a new secondary facility or for remodeling and improving an existing 
54.26 	secondary facility. A grant for new construction must not exceed the lesser of $5,000,000
54.27 	$10,000,000 or 75 percent of the approved construction costs of a cooperative secondary
54.28 	education facility. A grant for remodeling and improving an existing facility must not 
54.29 	exceed $200,000 $1,000,000.
54.30 		Subd. 2.Review by commissioner. (a) A group of districts or a consolidated district 
54.31 	that submits an application for a grant must submit a proposal to the commissioner for 
54.32 	review and comment under section  123B.71. The commissioner shall prepare a review 
54.33 	and comment on the proposed facility by July 1 of an odd-numbered year, regardless 
55.1 	of the amount of the capital expenditure required to acquire, construct, remodel, or 
55.2 	improve the secondary facility. The commissioner shall not approve an application for an 
55.3 	incentive grant for any secondary facility unless the facility receives a favorable review 
55.4 	and comment under section  123B.71 and the following criteria are met: 
55.5 	(1) the applicant is a consolidated district or a minimum of two or more districts, 
55.6 	with kindergarten to grade 12 enrollments in each district of no more than 1,200 pupils, 
55.7 	enter that have entered into a joint powers agreement;
55.8 	(2) for a group of districts, a joint powers board representing all participating 
55.9 	districts is established under section  471.59 to govern the cooperative secondary facility; 
55.10 	(3) the planned secondary facility will result in the joint powers district meeting the 
55.11 	requirements of Minnesota Rules, parts 3500.2010 and 3500.2110;
55.12 	(4) at least 198 pupils would be served in grades 10 to 12, 264 pupils would be 
55.13 	served in grades 9 to 12, or 396 pupils would be served in grades 7 to 12;
55.14 	(5) (3) for a group of districts, no more than one superintendent is employed by the 
55.15 	joint powers board as a result of the cooperative secondary facility agreement;
55.16 	(6) (4) a statement of need is submitted, that may include reasons why the current 
55.17 	secondary facilities are inadequate, unsafe or inaccessible to the handicapped disabled;
55.18 	(7) (5) an educational plan is prepared, that includes input from both community and 
55.19 	professional staff;
55.20 	(8) (6) for a group of districts, a combined seniority list for all participating districts 
55.21 	is developed by the joint powers board;
55.22 	(9) (7) for a group of districts, an education program is developed that provides for 
55.23 	more learning opportunities and course offerings, including the offering of advanced 
55.24 	placement courses, for students than is currently available in any single member district;
55.25 	(10) (8) a plan is developed for providing instruction of any resident students in 
55.26 	other districts when distance to the secondary education facility makes attendance at the 
55.27 	facility unreasonably difficult or impractical; and
55.28 	(11) (9) for a secondary facility, the joint powers board established under clause (2) 
55.29 	discusses with technical colleges located in the area how vocational education space in 
55.30 	the cooperative secondary facility could be jointly used for secondary and postsecondary 
55.31 	purposes.
55.32 	(b) To the extent possible, the joint powers board is encouraged to provide for 
55.33 	severance pay or for early retirement incentives under section  122A.48, for any teacher 
55.34 	or administrator, as defined under section  122A.40, subdivision 1, who is placed on 
55.35 	unrequested leave as a result of the cooperative secondary facility agreement. 
56.1 	(c) For the purpose of paragraph (a), clause (8) (6), each district must be considered 
56.2 	to have started school each year on the same date.
56.3 	(d) The districts may develop a plan that provides for the location of social service, 
56.4 	health, and other programs serving pupils and community residents within the cooperative 
56.5 	secondary facility. The commissioner shall consider this plan when preparing a review 
56.6 	and comment on the proposed facility.
56.7 	(e) The districts must schedule and conduct a meeting on library services. The 
56.8 	school districts, in cooperation with the regional public library system and its appropriate 
56.9 	member libraries, must discuss the possibility of including jointly operated library services 
56.10 	at the cooperative secondary facility.
56.11 	(f) The board of a district that has reorganized under section  123A.37 or  123A.48
56.12 	and that is applying for a grant for remodeling or improving an existing facility may act in 
56.13 	the place of a joint powers board to meet the criteria of this subdivision. 
56.14 		Subd. 3.Reorganizing districts. A district that is a member of a joint powers 
56.15 	board established under subdivision 2 and that is planning to reorganize under section  
56.16 	123A.45,  123A.46, or  123A.48 must notify the joint powers board one year in advance of 
56.17 	the effective date of the reorganization. Notwithstanding section  471.59 or any other law 
56.18 	to the contrary, the board of a district that reorganizes under section  123A.45,  123A.46, or  
56.19 	123A.48 may appoint representatives to the joint powers board who will serve on the joint 
56.20 	powers board for two years after the effective date of the reorganization if authorized in 
56.21 	the agreement establishing the joint powers board to govern the cooperative secondary
56.22 	facility. These representatives shall have the same powers as representatives of any other 
56.23 	school district under the joint powers agreement. 
56.24 		Subd. 4.District procedures. A joint powers board of a secondary district 
56.25 	established under subdivision 2 or a school board of a reorganized district that intends 
56.26 	to apply for a grant must adopt a resolution stating the proposed costs of the project, 
56.27 	the purpose for which the costs are to be incurred, and an estimate of the dates when 
56.28 	the facilities for which the grant is requested will be contracted for and completed. 
56.29 	Applications for the state grants must be accompanied by (a) a copy of the resolution, (b) 
56.30 	a certificate by the clerk and treasurer of the joint powers board showing the current 
56.31 	outstanding indebtedness of each member district, and (c) a certificate by the county 
56.32 	auditor of each county in which a portion of the joint powers district lies showing the 
56.33 	information in the auditor's official records that is required to be used in computing the 
56.34 	debt limit of the district under section  475.53, subdivision 4. The clerk's and treasurer's 
56.35 	certificate must show, as to each outstanding bond issue of each member district, the 
56.36 	amount originally issued, the purpose for which issued, the date of issue, the amount 
57.1 	remaining unpaid as of the date of the resolution, and the interest rates and due dates 
57.2 	and amounts of principal thereon. Applications and necessary data must be in the 
57.3 	form prescribed by the commissioner and the rules of the State Board of Education 
57.4 	before December 31, 1999, and after December 30, 1999, in the form prescribed by the 
57.5 	commissioner. Applications must be received by the commissioner by September 1 of an 
57.6 	odd-numbered year. When an application is received, the commissioner shall obtain from 
57.7 	the commissioner of revenue, and from the Public Utilities Commission when required, 
57.8 	the information in their official records that is required to be used in computing the debt 
57.9 	limit of the joint powers district under section  475.53, subdivision 4. 
57.10 		Subd. 5.Award of grants. By November 1 of the odd-numbered year, the 
57.11 	commissioner shall examine and consider all applications for grants, and if any district is 
57.12 	found not qualified, the commissioner shall promptly notify that board.
57.13 	A grant award is subject to verification by the district as specified in subdivision 
57.14 	8. A grant award for a new facility must not be made until the site of the secondary
57.15 	facility has been determined. A grant award to remodel or improve an existing facility 
57.16 	must not be made until the districts have reorganized. If the total amount of the approved 
57.17 	applications exceeds the amount that is or can be made available, the commissioner 
57.18 	shall allot the available amount equally between the approved applicant districts. The 
57.19 	commissioner shall promptly certify to each qualified district the amount, if any, of the 
57.20 	grant awarded to it.
57.21 		Subd. 6.Collocation grant. A group of districts that receives a grant for a new 
57.22 	facility under subdivision 4 is also eligible to receive an additional grant in the amount of 
57.23 	$1,000,000. To receive the additional grant, the group of districts must develop a plan 
57.24 	under subdivision 2, paragraph (d), that provides for the location of a significant number 
57.25 	of noneducational student and community service programs within the cooperative 
57.26 	secondary facility.
57.27 		Subd. 7.Referendum; bond issue. Within 180 days after being awarded a grant 
57.28 	for a new facility under subdivision 5, the joint powers board must submit the question 
57.29 	of authorizing the borrowing of funds for the secondary facility to the voters of the joint 
57.30 	powers district at a special election, which may be held in conjunction with the annual 
57.31 	election of the school board members of the member districts. The question submitted 
57.32 	must state the total amount of funding needed from all sources. A majority of those voting 
57.33 	in the affirmative on the question is sufficient to authorize the joint powers board to accept 
57.34 	the grant and to issue the bonds on public sale in accordance with according to chapter 
57.35 	475. The clerk of the joint powers board must certify the vote of the bond election to the 
57.36 	commissioner. If the question is approved by the voters, the commissioner shall notify the 
58.1 	approved applicant districts that the grant amount certified under subdivision 5 is available 
58.2 	and appropriated for payment under this subdivision. If a majority of those voting on the 
58.3 	question do not vote in the affirmative, the grant must be canceled.
58.4 		Subd. 8.Contract. Each grant must be evidenced by a contract between the board 
58.5 	and the state acting through the commissioner. The contract obligates the state to pay to 
58.6 	the board an amount computed according to subdivision 5, and according to a schedule, 
58.7 	and terms and conditions acceptable to the commissioner of finance.
58.8 		Subd. 9.Consolidation. A group of districts that operates a cooperative secondary
58.9 	facility that was acquired, constructed, remodeled, or improved under this section and 
58.10 	implements consolidation proceedings according to section  123A.48, may propose a 
58.11 	temporary school board structure in the petition or resolution required under section  
58.12 	123A.48, subdivision 2. The districts may propose the number of existing school board 
58.13 	members of each district to become members of the board of the consolidated district 
58.14 	and a method to gradually reduce the membership to six or seven. The proposal must 
58.15 	be approved, disapproved, or modified by the state board of education commissioner. 
58.16 	The election requirements of section  123A.48, subdivision 20, do not apply to a 
58.17 	proposal approved by the state board. Elections conducted after the effective date of the 
58.18 	consolidation are subject to the Minnesota Election Law. 

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

58.20 	Sec. 5. Minnesota Statutes 2004, section 123B.10, subdivision 1, is amended to read:
58.21 		Subdivision 1.Budgets. By October 1, Every board must publish revenue and 
58.22 	expenditure budgets for the current year and the actual revenues, expenditures, fund 
58.23 	balances for the prior year and projected fund balances for the current year in a form 
58.24 	prescribed by the commissioner within one week of the acceptance of the final audit by 
58.25 	the board, or November 30, whichever is earlier. The forms prescribed must be designed 
58.26 	so that year to year comparisons of revenue, expenditures and fund balances can be made. 
58.27 	These budgets, reports of revenue, expenditures and fund balances must be published in 
58.28 	a qualified newspaper of general circulation in the district or on the district's official 
58.29 	Web site. If published on the district's official Web site, the district must also publish an 
58.30 	announcement in a qualified newspaper of general circulation in the district that includes 
58.31 	the Internet address where the information has been posted.

58.32 	Sec. 6. Minnesota Statutes 2004, section 123B.77, is amended by adding a subdivision 
58.33 	to read:
59.1 		Subd. 1a.School district consolidated financial statement. The commissioner, 
59.2 	in consultation with the advisory committee on financial management, accounting, and 
59.3 	reporting, shall develop and maintain a school district consolidated financial statement 
59.4 	format that converts uniform financial accounting and reporting standards data under 
59.5 	subdivision 1 into a more understandable format.

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

59.7 	Sec. 7. Minnesota Statutes 2004, section 127A.41, subdivision 2, is amended to read:
59.8 		Subd. 2.Errors in distribution. On determining that the amount of state aid 
59.9 	distributed to a school district is in error, the commissioner is authorized to adjust the 
59.10 	amount of aid consistent with this subdivision. On determining that the amount of aid is 
59.11 	in excess of the school district's entitlement, the commissioner is authorized to recover 
59.12 	the amount of the excess by any appropriate means. Notwithstanding the fiscal years 
59.13 	designated by the appropriation, the excess may be recovered by reducing future aid 
59.14 	payments to the district. Notwithstanding any law to the contrary, if the aid reduced is not 
59.15 	of the same type as that overpaid, the district must adjust all necessary financial accounts 
59.16 	to properly reflect all revenues earned in accordance with the uniform financial accounting 
59.17 	and reporting standards pursuant to sections  123B.75 to  123B.83. Notwithstanding the 
59.18 	fiscal years designated by the appropriation, on determining that the amount of an aid paid 
59.19 	is less than the school district's entitlement, the commissioner is authorized to increase 
59.20 	such aid from the current appropriation. If the aid program has been discontinued and has 
59.21 	no appropriation, the appropriation for general education shall be used for recovery or 
59.22 	payment of the aid decrease or increase. Any excess of aid recovery over aid payment 
59.23 	shall be canceled to the state general fund.

59.24 	Sec. 8. Minnesota Statutes 2004, section 181.101, is amended to read:
59.25 	181.101 WAGES; HOW OFTEN PAID.
59.26 	Every employer must pay all wages earned by an employee at least once every 31 
59.27 	days on a regular pay day designated in advance by the employer regardless of whether 
59.28 	the employee requests payment at longer intervals. Unless paid earlier, the wages earned 
59.29 	during the first half of the first 31-day pay period become due on the first regular payday 
59.30 	following the first day of work. If wages earned are not paid, the commissioner of labor 
59.31 	and industry or the commissioner's representative may demand payment on behalf of an 
59.32 	employee. If payment is not made within ten days of demand, the commissioner may 
59.33 	charge and collect the wages earned and a penalty in the amount of the employee's average 
60.1 	daily earnings at the rate agreed upon in the contract of employment, not exceeding 15 
60.2 	days in all, for each day beyond the ten-day limit following the demand. Money collected 
60.3 	by the commissioner must be paid to the employee concerned. This section does not 
60.4 	prevent an employee from prosecuting a claim for wages. This section does not prevent 
60.5 	a school district or,  other public school entity, or other school, as defined under section 
60.6 	120A.22,  from paying any wages earned by its employees during a school year on regular 
60.7 	pay days in the manner provided by an applicable contract or collective bargaining 
60.8 	agreement, or a personnel policy adopted by the governing board. For purposes of this 
60.9 	section, "employee" includes a person who performs agricultural labor as defined in 
60.10 	section  181.85, subdivision 2. For purposes of this section, wages are earned on the 
60.11 	day an employee works. 

60.12 	Sec. 9. CONSOLIDATED FINANCIAL STATEMENT IMPLEMENTATION.
 60.13 	The Department of Education shall pay for the implementation of the consolidated 
60.14 	financial statement system under Minnesota Statutes, section 123B.77, subdivision 1a, 
60.15 	from the department's existing biennial appropriations for fiscal years 2006 and 2007.

60.16 	Sec. 10. HEALTH AND SAFETY REVENUE USES; BELLE PLAINE.
 60.17 	Notwithstanding Minnesota Statutes, sections 123B.57 and 123B.59, upon approval 
60.18 	of the commissioner of education, Independent School District No. 716, Belle Plaine, may 
60.19 	use up to $125,000 of its health and safety revenue raised through an alternative facilities 
60.20 	bond for other qualifying health and safety projects.

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

60.22 	ARTICLE 5
60.23 	STATE AGENCIES

60.24 	Section 1. Minnesota Statutes 2004, section 125A.65, subdivision 3, is amended to 
60.25 	read:
60.26 		Subd. 3.Educational program; tuition. (a) When it is determined pursuant to 
60.27 	section  125A.69, subdivision 1 or 2, that the child is entitled to attend either school, 
60.28 	the board of the Minnesota State Academies must provide the appropriate educational 
60.29 	program for the child. 
60.30 	(b) For fiscal year 2006, the board of the Minnesota State Academies must make a 
60.31 	tuition charge to the child's district of residence for the cost of providing the program. 
60.32 	The amount of tuition charged must not exceed the sum of (1) the general education 
61.1 	revenue formula allowance times the pupil unit weighting factor pursuant to section  
61.2 	126C.05 for that child, for the amount of time the child is in the program, plus (2), if 
61.3 	the child was enrolled at the Minnesota State Academies on October 1 of the previous 
61.4 	fiscal year, the compensatory education revenue attributable to that child under section 
61.5 	126C.10, subdivision 3. The district of the child's residence must pay the tuition and 
61.6 	may claim general education aid for the child. Tuition received by the board of the 
61.7 	Minnesota State Academies, except for tuition for compensatory education revenue under 
61.8 	this paragraph and tuition received under subdivision 4, must be deposited in the state 
61.9 	treasury as provided in subdivision 8. 
61.10 	(c) For fiscal year 2007 and later, the district of the child's residence shall 
61.11 	claim general education revenue for the child, except as provided in this paragraph. 
61.12 	Notwithstanding section 127A.47, subdivision 1, an amount equal to the general education 
61.13 	revenue formula allowance times the pupil unit weighting factor pursuant to section 
61.14 	126C.05 for that child for the amount of time the child is in the program, as adjusted 
61.15 	according to subdivision 8, paragraph (d), must be paid to the Minnesota State Academies. 
61.16 	Notwithstanding section 126C.15, subdivision 2, paragraph (d), the compensatory 
61.17 	education revenue under section 126C.10, subdivision 3, attributable to children enrolled at 
61.18 	the Minnesota State Academies on October 1 of the previous fiscal year must be paid to the 
61.19 	Minnesota State Academies. General education aid paid to the Minnesota State Academies 
61.20 	under this paragraph must be credited to their general operation account. Other general 
61.21 	education aid attributable to the child must be paid to the district of the child's residence.

61.22 	Sec. 2. Minnesota Statutes 2004, section 125A.65, subdivision 4, is amended to read:
61.23 		Subd. 4.Unreimbursed costs. (a) For fiscal year 2006, in addition to the tuition 
61.24 	charge allowed in subdivision 3, the academies may charge the child's district of residence 
61.25 	for the academy's unreimbursed cost of providing an instructional aide assigned to that 
61.26 	child, after deducting the special education aid under section 125A.76, attributable to the 
61.27 	child, if that aide is required by the child's individual education plan. Tuition received 
61.28 	under this paragraph must be used by the academies to provide the required service.
61.29 	(b) For fiscal year 2007 and later, the special education aid paid to the academies 
61.30 	shall be increased by the academy's unreimbursed cost of providing an instructional 
61.31 	aide assigned to a child, after deducting the special education aid under section 125A.76 
61.32 	attributable to the child, if that aide is required by the child's individual education plan. 
61.33 	Aid received under this paragraph must be used by the academies to provide the required 
61.34 	service.
62.1 	(c) For fiscal year 2007 and later, the special education aid paid to the district of 
62.2 	the child's residence shall be reduced by the amount paid to the academies for district 
62.3 	residents under paragraph (b).
62.4 	(d) Notwithstanding section 127A.45, subdivision 3, beginning in fiscal year 2008, 
62.5 	the commissioner shall make an estimated final adjustment payment to the Minnesota 
62.6 	State Academies for general education aid and special education aid for the prior fiscal 
62.7 	year by August 15.

62.8 	Sec. 3. Minnesota Statutes 2004, section 125A.65, subdivision 6, is amended to read:
62.9 		Subd. 6.Tuition reduction. Notwithstanding the provisions of subdivisions 3 and 
62.10 	5, the board of the Minnesota State Academies may agree to make a tuition charge, or 
62.11 	receive an aid adjustment, as applicable, for less than the amount specified in subdivision 
62.12 	3 for pupils attending the applicable school who are residents of the district where the 
62.13 	institution is located and who do not board at the institution, if that district agrees to make 
62.14 	a tuition charge to the board of the Minnesota State Academies for less than the amount 
62.15 	specified in subdivision 5 for providing appropriate educational programs to pupils 
62.16 	attending the applicable school.

62.17 	Sec. 4. Minnesota Statutes 2004, section 125A.65, subdivision 8, is amended to read:
62.18 		Subd. 8.Student count; tuition. (a) On May 1, 1996, and each year thereafter, 
62.19 	the board of the Minnesota State Academies shall count the actual number of Minnesota 
62.20 	resident special education eligible students enrolled and receiving education services at the 
62.21 	Minnesota State Academy for the Deaf and the Minnesota State Academy for the Blind. 
62.22 	(b) For fiscal year 2006, the board of the Minnesota State Academies shall deposit in 
62.23 	the state treasury an amount equal to all tuition received for the basic revenue according to 
62.24 	subdivision 3, less the amount calculated in paragraph (b) (c).
62.25 	(b) (c) For fiscal year 2006, the Minnesota State Academies shall credit to their 
62.26 	general operation account an amount equal to the tuition received which represents tuition 
62.27 	earned for the total number of students over 175 based on:
62.28 	(1) the total number of enrolled students on May 1 less 175; times
62.29 	(2) the ratio of the number of students in that grade category to the total number of 
62.30 	students on May 1; times
62.31 	(3) the general education revenue formula allowance; times
62.32 	(4) the pupil unit weighting factor pursuant to section  126C.05. 
62.33 	(d) For fiscal year 2007 and later, the Minnesota State Academies shall report to 
62.34 	the department the number of students by grade level counted according to paragraph (a). 
63.1 	The amount paid to the Minnesota State Academies under subdivision 3, paragraph (c), 
63.2 	must be reduced by an amount equal to:
63.3 	(1) the ratio of 175 to the total number of students on May 1; times
63.4 	(2) the total basic revenue determined according to subdivision 3, paragraph (c).

63.5 	Sec. 5. Minnesota Statutes 2004, section 125A.65, subdivision 10, is amended to read:
63.6 		Subd. 10.Annual appropriation. There is annually appropriated to the department 
63.7 	for the Minnesota State Academies the tuition or aid payment amounts received and 
63.8 	credited to the general operation account of the academies under this section. A balance 
63.9 	in an appropriation under this paragraph does not cancel but is available in successive 
63.10 	fiscal years.

63.11 	Sec. 6. Minnesota Statutes 2004, section 125A.69, subdivision 3, is amended to read:
63.12 		Subd. 3.Out-of-state admissions. An applicant from another state who can benefit 
63.13 	from attending either academy may be admitted to the academy if the admission does not 
63.14 	prevent an eligible Minnesota resident from being admitted. The board of the Minnesota 
63.15 	State Academies must obtain reimbursement from the other state for the costs of the 
63.16 	out-of-state admission. The state board may enter into an agreement with the appropriate 
63.17 	authority in the other state for the reimbursement. Money received from another state 
63.18 	must be deposited in the general special revenue fund and credited to the general operating 
63.19 	account of the academies. The money is appropriated to the academies.

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

63.21 	ARTICLE 6
63.22 	TECHNICAL AND CONFORMING AMENDMENTS

63.23 	Section 1. Minnesota Statutes 2005 Supplement, section 120B.11, subdivision 2, is 
63.24 	amended to read:
63.25 		Subd. 2.Adopting policies. (a) A school board shall have in place an adopted 
63.26 	written policy that includes the following:
63.27 	(1) district goals for instruction including the use of best practices, district and 
63.28 	school curriculum, and achievement for all student subgroups;
63.29 	(2) a process for evaluating each student's progress toward meeting academic 
63.30 	standards and identifying the strengths and weaknesses of instruction and curriculum 
63.31 	affecting students' progress;
63.32 	(3) a system for periodically reviewing and evaluating all instruction and curriculum;
64.1 	(4) a plan for improving instruction, curriculum, and student achievement; and
64.2 	(5) an education effectiveness plan aligned with section 122A.625 that integrates 
64.3 	instruction, curriculum, and technology.

64.4 	Sec. 2. Minnesota Statutes 2004, section 121A.15, subdivision 10, is amended to read:
64.5 		Subd. 10.Requirements for immunization statements. (a) A statement required 
64.6 	to be submitted under subdivisions 1, 2, and 4 to document evidence of immunization 
64.7 	shall include month, day, and year for immunizations administered after January 1, 1990.
64.8 	(a) For persons enrolled in grades 7 and 12 during the 1996-1997 school term, the 
64.9 	statement must indicate that the person has received a dose of tetanus and diphtheria 
64.10 	toxoid no earlier than 11 years of age.
64.11 	(b) Except as specified in paragraph (e), for persons enrolled in grades 7, 8, and 12 
64.12 	during the 1997-1998 school term, the statement must indicate that the person has received 
64.13 	a dose of tetanus and diphtheria toxoid no earlier than 11 years of age.
64.14 	(c) Except as specified in paragraph (e), for persons enrolled in grades 7 through 
64.15 	12 during the 1998-1999 school term and for each year thereafter, the statement must 
64.16 	indicate that the person has received a dose of tetanus and diphtheria toxoid no earlier 
64.17 	than 11 years of age.
64.18 	(d) For persons enrolled in grades 7 through 12 during the 1996-1997 school year 
64.19 	and for each year thereafter, the statement must indicate that the person has received at 
64.20 	least two doses of vaccine against measles, mumps, and rubella, given alone or separately 
64.21 	and given not less than one month apart.
64.22 	(e)  (b) A person who has received at least three doses of tetanus and diphtheria 
64.23 	toxoids, with the most recent dose given after age six and before age 11, is not required to 
64.24 	have additional immunization against diphtheria and tetanus until ten years have elapsed 
64.25 	from the person's most recent dose of tetanus and diphtheria toxoid.
64.26 	(f)  (c) The requirement for hepatitis B vaccination shall apply to persons enrolling in 
64.27 	kindergarten beginning with the 2000-2001 school term.
64.28 	(g) (d) The requirement for hepatitis B vaccination shall apply to persons enrolling 
64.29 	in grade 7 beginning with the 2001-2002 school term.

64.30 	Sec. 3. Minnesota Statutes 2005 Supplement, section 123B.04, subdivision 2, is 
64.31 	amended to read:
64.32 		Subd. 2.Agreement. (a) Upon the request of 60 percent of the licensed employees 
64.33 	of a site or a school site decision-making team, the school board shall enter into 
64.34 	discussions to reach an agreement concerning the governance, management, or control of 
65.1 	the school. A school site decision-making team may include the school principal, teachers 
65.2 	in the school or their designee, other employees in the school, representatives of pupils 
65.3 	in the school, or other members in the community. A school site decision-making team 
65.4 	must include at least one parent of a pupil in the school. For purposes of formation of a 
65.5 	new site, a school site decision-making team may be a team of teachers that is recognized 
65.6 	by the board as a site. The school site decision-making team shall include the school 
65.7 	principal or other person having general control and supervision of the school. The site 
65.8 	decision-making team must reflect the diversity of the education site. At least one-half 
65.9 	of the members shall be employees of the district, unless an employee is the parent of a 
65.10 	student enrolled in the school site, in which case the employee may elect to serve as a 
65.11 	parent member of the site team.
65.12 	(b) School site decision-making agreements must delegate powers, duties, and 
65.13 	broad management responsibilities to site teams and involve staff members, students as 
65.14 	appropriate, and parents in decision making.
65.15 	(c) An agreement shall include a statement of powers, duties, responsibilities, and 
65.16 	authority to be delegated to and within the site.
65.17 	(d) An agreement may include:
65.18 	(1) an achievement contract according to subdivision 4;
65.19 	(2) a mechanism to allow principals, a site leadership team, or other persons having 
65.20 	general control and supervision of the school, to make decisions regarding how financial 
65.21 	and personnel resources are best allocated at the site and from whom goods or services 
65.22 	are purchased;
65.23 	(3) a mechanism to implement parental involvement programs under section 
65.24 	124D.895 and to provide for effective parental communication and feedback on this 
65.25 	involvement at the site level;
65.26 	(4) a provision that would allow the team to determine who is hired into licensed 
65.27 	and nonlicensed positions;
65.28 	(5) a provision that would allow teachers to choose the principal or other person 
65.29 	having general control;
65.30 	(6) an amount of revenue allocated to the site under subdivision 3; and
65.31 	(7) any other powers and duties determined appropriate by the board.
65.32 	The school board of the district remains the legal employer under clauses (4) and (5).
65.33 	(e) Any powers or duties not delegated to the school site management team in the 
65.34 	school site management agreement shall remain with the school board.
65.35 	(f) Approved agreements shall be filed with the commissioner. If a school board 
65.36 	denies a request or the school site and school board fail to reach an agreement to enter 
66.1 	into a school site management agreement, the school board shall provide a copy of the 
66.2 	request and the reasons for its denial to the commissioner.
66.3 	(g) A site decision-making grant program is established, consistent with this 
66.4 	subdivision, to allow sites to implement an agreement that at least:
66.5 	(1) notwithstanding subdivision 3, allocates to the site all revenue that is attributable 
66.6 	to the students at that site;
66.7 	(2) includes a provision, consistent with current law and the collective bargaining 
66.8 	agreement in effect, that allows the site team to decide who is selected from within the 
66.9 	district for licensed and nonlicensed positions at the site and to make staff assignments 
66.10 	in the site; and
66.11 	(3) includes a completed performance agreement under subdivision 4.
66.12 	The commissioner shall establish the form and manner of the application for a grant 
66.13 	and annually, at the end of each fiscal year, report to the house of representatives and 
66.14 	senate committees having jurisdiction over education on the progress of the program.

66.15 	Sec. 4. Minnesota Statutes 2004, section 125A.62, subdivision 1, is amended to read:
66.16 		Subdivision 1.Governance. The board of the Minnesota State Academies shall 
66.17 	govern the State Academies Academy for the Deaf and the State Academy for the Blind. 
66.18 	The board must promote academic standards based on high expectation and an assessment 
66.19 	system to measure academic performance toward the achievement of those standards. The 
66.20 	board must focus on the academies' needs as a whole and not prefer one school over the 
66.21 	other. The board of the Minnesota State Academies shall consist of nine persons. The 
66.22 	members of the board shall be appointed by the governor with the advice and consent of 
66.23 	the senate. One member must be from the seven-county metropolitan area, one member 
66.24 	must be from greater Minnesota, and one member may be appointed at-large. The board 
66.25 	must be composed of:
66.26 	(1) one present or former superintendent of an independent school district;
66.27 	(2) one present or former special education director;
66.28 	(3) the commissioner of education or the commissioner's designee;
66.29 	(4) one member of the blind community;
66.30 	(5) one member of the deaf community;
66.31 	(6) two members of the general public with business, administrative, or financial 
66.32 	expertise;
66.33 	(7) one nonvoting, unpaid ex officio member appointed by the site council for the 
66.34 	State Academy for the Deaf; and
67.1 	(8) one nonvoting, unpaid ex officio member appointed by the site council for the 
67.2 	State Academy for the Blind.

67.3 	Sec. 5. Minnesota Statutes 2005 Supplement, section 126C.10, subdivision 24, is 
67.4 	amended to read:
67.5 		Subd. 24.Equity revenue. (a) A school district qualifies for equity revenue if:
67.6 	(1) the school district's adjusted marginal cost pupil unit amount of basic revenue, 
67.7 	supplemental revenue, transition revenue, and referendum revenue is less than the value of 
67.8 	the school district at or immediately above the 95th percentile of school districts in its 
67.9 	equity region for those revenue categories; and
67.10 	(2) the school district's administrative offices are not located in a city of the first 
67.11 	class on July 1, 1999.
67.12 	(b) Equity revenue for a qualifying district that receives referendum revenue under 
67.13 	section 126C.17, subdivision 4, equals the product of (1) the district's adjusted marginal 
67.14 	cost pupil units for that year; times (2) the sum of (i) $13, plus (ii) $75, times the school 
67.15 	district's equity index computed under subdivision 27.
67.16 	(c) Equity revenue for a qualifying district that does not receive referendum revenue 
67.17 	under section 126C.17, subdivision 4, equals the product of the district's adjusted marginal 
67.18 	cost pupil units for that year times $13.
67.19 	(d) A school district's equity revenue is increased by the greater of zero or an amount 
67.20 	equal to the district's resident marginal cost pupil units times the difference between ten 
67.21 	percent of the statewide average amount of referendum revenue per resident marginal cost 
67.22 	pupil unit for that year and the district's referendum revenue per resident marginal cost 
67.23 	pupil unit. A school district's revenue under this paragraph must not exceed $100,000 for 
67.24 	that year.
67.25 	(e) A school district's equity revenue for a school district located in the metro equity 
67.26 	region equals the amount computed in paragraphs (b), (c), and (d) multiplied by 1.25.
67.27 	(f) For fiscal year 2007 and later, notwithstanding paragraph (a), clause (2), a school 
67.28 	district that has per pupil referendum revenue below the 95th percentile qualifies for 
67.29 	additional equity revenue equal to $46 times its adjusted marginal cost pupil unit.
67.30 	(g) A district that does not qualify for revenue under paragraph (f) qualifies for 
67.31 	equity revenue equal to one-half of the per pupil allowance in paragraph (f) times its 
67.32 	adjusted marginal cost pupil units.

67.33 	Sec. 6. Minnesota Statutes 2005 Supplement, section 626.556, subdivision 2, is 
67.34 	amended to read:
68.1 		Subd. 2.Definitions. As used in this section, the following terms have the meanings 
68.2 	given them unless the specific content indicates otherwise:
68.3 	(a) "Family assessment" means a comprehensive assessment of child safety, risk 
68.4 	of subsequent child maltreatment, and family strengths and needs that is applied to a 
68.5 	child maltreatment report that does not allege substantial child endangerment. Family 
68.6 	assessment does not include a determination as to whether child maltreatment occurred 
68.7 	but does determine the need for services to address the safety of family members and the 
68.8 	risk of subsequent maltreatment.
68.9 	(b) "Investigation" means fact gathering related to the current safety of a child 
68.10 	and the risk of subsequent maltreatment that determines whether child maltreatment 
68.11 	occurred and whether child protective services are needed. An investigation must be used 
68.12 	when reports involve substantial child endangerment, and for reports of maltreatment in 
68.13 	facilities required to be licensed under chapter 245A or 245B; under sections 144.50 to 
68.14 	144.58 and 241.021; in a school as defined in sections 120A.05, subdivisions 9, 11, and 
68.15 	13, and 124D.10; or in a nonlicensed personal care provider association as defined in 
68.16 	sections 256B.04, subdivision 16, and 256B.0625, subdivision 19a.
68.17 	(c) "Substantial child endangerment" means a person responsible for a child's care, a 
68.18 	person who has a significant relationship to the child as defined in section 609.341, or a 
68.19 	person in a position of authority as defined in section 609.341, who by act or omission 
68.20 	commits or attempts to commit an act against a child under their care that constitutes 
68.21 	any of the following:
68.22 	(1) egregious harm as defined in section 260C.007, subdivision 14;
68.23 	(2) sexual abuse as defined in paragraph (d);
68.24 	(3) abandonment under section 260C.301, subdivision 2;
68.25 	(4) neglect as defined in paragraph (f), clause (2), that substantially endangers the 
68.26 	child's physical or mental health, including a growth delay, which may be referred to as 
68.27 	failure to thrive, that has been diagnosed by a physician and is due to parental neglect;
68.28 	(5) murder in the first, second, or third degree under section 609.185, 609.19, or 
68.29 	609.195;
68.30 	(6) manslaughter in the first or second degree under section 609.20 or 609.205;
68.31 	(7) assault in the first, second, or third degree under section 609.221, 609.222, or 
68.32 	609.223;
68.33 	(8) solicitation, inducement, and promotion of prostitution under section 609.322;
68.34 	(9) criminal sexual conduct under sections 609.342 to 609.3451;
68.35 	(10) solicitation of children to engage in sexual conduct under section 609.352;
69.1 	(11) malicious punishment or neglect or endangerment of a child under section 
69.2 	609.377 or 609.378;
69.3 	(12) use of a minor in sexual performance under section 617.246; or
69.4 	(13) parental behavior, status, or condition which mandates that the county attorney 
69.5 	file a termination of parental rights petition under section 260C.301, subdivision 3, 
69.6 	paragraph (a).
69.7 	(d) "Sexual abuse" means the subjection of a child by a person responsible for the 
69.8 	child's care, by a person who has a significant relationship to the child, as defined in 
69.9 	section 609.341, or by a person in a position of authority, as defined in section 609.341, 
69.10 	subdivision 10, to any act which constitutes a violation of section 609.342 (criminal sexual 
69.11 	conduct in the first degree), 609.343 (criminal sexual conduct in the second degree), 
69.12 	609.344 (criminal sexual conduct in the third degree), 609.345 (criminal sexual conduct 
69.13 	in the fourth degree), or 609.3451 (criminal sexual conduct in the fifth degree). Sexual 
69.14 	abuse also includes any act which involves a minor which constitutes a violation of 
69.15 	prostitution offenses under sections 609.321 to 609.324 or 617.246. Sexual abuse includes 
69.16 	threatened sexual abuse.
69.17 	(e) "Person responsible for the child's care" means (1) an individual functioning 
69.18 	within the family unit and having responsibilities for the care of the child such as a 
69.19 	parent, guardian, or other person having similar care responsibilities, or (2) an individual 
69.20 	functioning outside the family unit and having responsibilities for the care of the child 
69.21 	such as a teacher, school administrator, other school employees or agents, or other lawful 
69.22 	custodian of a child having either full-time or short-term care responsibilities including, 
69.23 	but not limited to, day care, babysitting whether paid or unpaid, counseling, teaching, 
69.24 	and coaching.
69.25 	(f) "Neglect" means:
69.26 	(1) failure by a person responsible for a child's care to supply a child with necessary 
69.27 	food, clothing, shelter, health, medical, or other care required for the child's physical or 
69.28 	mental health when reasonably able to do so;
69.29 	(2) failure to protect a child from conditions or actions that seriously endanger the 
69.30 	child's physical or mental health when reasonably able to do so, including a growth delay, 
69.31 	which may be referred to as a failure to thrive, that has been diagnosed by a physician and 
69.32 	is due to parental neglect;
69.33 	(3) failure to provide for necessary supervision or child care arrangements 
69.34 	appropriate for a child after considering factors as the child's age, mental ability, physical 
69.35 	condition, length of absence, or environment, when the child is unable to care for the 
69.36 	child's own basic needs or safety, or the basic needs or safety of another child in their care;
70.1 	(4) failure to ensure that the child is educated as defined in sections 120A.22 and 
70.2 	260C.163, subdivision 11, which does not include a parent's refusal to provide the parent's 
70.3 	child with sympathomimetic medications, consistent with section 125A.091, subdivision 5;
70.4 	(5) nothing in this section shall be construed to mean that a child is neglected solely 
70.5 	because the child's parent, guardian, or other person responsible for the child's care in 
70.6 	good faith selects and depends upon spiritual means or prayer for treatment or care of 
70.7 	disease or remedial care of the child in lieu of medical care; except that a parent, guardian, 
70.8 	or caretaker, or a person mandated to report pursuant to subdivision 3, has a duty to report 
70.9 	if a lack of medical care may cause serious danger to the child's health. This section does 
70.10 	not impose upon persons, not otherwise legally responsible for providing a child with 
70.11 	necessary food, clothing, shelter, education, or medical care, a duty to provide that care;
70.12 	(6) prenatal exposure to a controlled substance, as defined in section 253B.02, 
70.13 	subdivision 2, used by the mother for a nonmedical purpose, as evidenced by withdrawal 
70.14 	symptoms in the child at birth, results of a toxicology test performed on the mother at 
70.15 	delivery or the child at birth, or medical effects or developmental delays during the child's 
70.16 	first year of life that medically indicate prenatal exposure to a controlled substance;
70.17 	(7) "medical neglect" as defined in section 260C.007, subdivision 6, clause (5);
70.18 	(8) chronic and severe use of alcohol or a controlled substance by a parent or 
70.19 	person responsible for the care of the child that adversely affects the child's basic needs 
70.20 	and safety; or
70.21 	(9) emotional harm from a pattern of behavior which contributes to impaired 
70.22 	emotional functioning of the child which may be demonstrated by a substantial and 
70.23 	observable effect in the child's behavior, emotional response, or cognition that is not 
70.24 	within the normal range for the child's age and stage of development, with due regard to 
70.25 	the child's culture.
70.26 	(g) "Physical abuse" means any physical injury, mental injury, or threatened injury, 
70.27 	inflicted by a person responsible for the child's care on a child other than by accidental 
70.28 	means, or any physical or mental injury that cannot reasonably be explained by the child's 
70.29 	history of injuries, or any aversive or deprivation procedures, or regulated interventions, 
70.30 	that have not been authorized under section 121A.67 or 245.825. Abuse does not include 
70.31 	reasonable and moderate physical discipline of a child administered by a parent or legal 
70.32 	guardian which does not result in an injury. Abuse does not include the use of reasonable 
70.33 	force by a teacher, principal, or school employee as allowed by section 121A.582. Actions 
70.34 	which are not reasonable and moderate include, but are not limited to, any of the following 
70.35 	that are done in anger or without regard to the safety of the child:
70.36 	(1) throwing, kicking, burning, biting, or cutting a child;
71.1 	(2) striking a child with a closed fist;
71.2 	(3) shaking a child under age three;
71.3 	(4) striking or other actions which result in any nonaccidental injury to a child 
71.4 	under 18 months of age;
71.5 	(5) unreasonable interference with a child's breathing;
71.6 	(6) threatening a child with a weapon, as defined in section 609.02, subdivision 6;
71.7 	(7) striking a child under age one on the face or head;
71.8 	(8) purposely giving a child poison, alcohol, or dangerous, harmful, or controlled 
71.9 	substances which were not prescribed for the child by a practitioner, in order to control 
71.10 	or punish the child; or other substances that substantially affect the child's behavior, 
71.11 	motor coordination, or judgment or that results in sickness or internal injury, or subjects 
71.12 	the child to medical procedures that would be unnecessary if the child were not exposed 
71.13 	to the substances;
71.14 	(9) unreasonable physical confinement or restraint not permitted under section 
71.15 	609.379, including but not limited to tying, caging, or chaining; or
71.16 	(10) in a school facility or school zone, an act by a person responsible for the child's 
71.17 	care that is a violation under section 121A.58.
71.18 	(h) "Report" means any report received by the local welfare agency, police 
71.19 	department, county sheriff, or agency responsible for assessing or investigating 
71.20 	maltreatment pursuant to this section.
71.21 	(i) "Facility" means:
71.22 	(1) a licensed or unlicensed day care facility, residential facility, agency, hospital, 
71.23 	sanitarium, or other facility or institution required to be licensed under sections 144.50 to 
71.24 	144.58, 241.021, or 245A.01 to 245A.16, or chapter 245B; or
71.25 	(2) a school as defined in sections 120A.05, subdivisions 9, 11, and 13; and 
71.26 	124D.10; or 
71.27 	(3) a nonlicensed personal care provider organization as defined in sections 256B.04, 
71.28 	subdivision 16, and 256B.0625, subdivision 19a.
71.29 	(j) "Operator" means an operator or agency as defined in section 245A.02.
71.30 	(k) "Commissioner" means the commissioner of human services.
71.31 	(l) "Practice of social services," for the purposes of subdivision 3, includes but is 
71.32 	not limited to employee assistance counseling and the provision of guardian ad litem and 
71.33 	parenting time expeditor services.
71.34 	(m) "Mental injury" means an injury to the psychological capacity or emotional 
71.35 	stability of a child as evidenced by an observable or substantial impairment in the child's 
72.1 	ability to function within a normal range of performance and behavior with due regard to 
72.2 	the child's culture.
72.3 	(n) "Threatened injury" means a statement, overt act, condition, or status that 
72.4 	represents a substantial risk of physical or sexual abuse or mental injury. Threatened 
72.5 	injury includes, but is not limited to, exposing a child to a person responsible for the 
72.6 	child's care, as defined in paragraph (e), clause (1), who has:
72.7 	(1) subjected a child to, or failed to protect a child from, an overt act or condition 
72.8 	that constitutes egregious harm, as defined in section 260C.007, subdivision 14, or a 
72.9 	similar law of another jurisdiction;
72.10 	(2) been found to be palpably unfit under section 260C.301, paragraph (b), clause 
72.11 	(4), or a similar law of another jurisdiction;
72.12 	(3) committed an act that has resulted in an involuntary termination of parental rights 
72.13 	under section 260C.301, or a similar law of another jurisdiction; or
72.14 	(4) committed an act that has resulted in the involuntary transfer of permanent legal 
72.15 	and physical custody of a child to a relative under section 260C.201, subdivision 11, 
72.16 	paragraph (d), clause (1), or a similar law of another jurisdiction.
72.17 	(o) Persons who conduct assessments or investigations under this section shall take 
72.18 	into account accepted child-rearing practices of the culture in which a child participates 
72.19 	and accepted teacher discipline practices, which are not injurious to the child's health, 
72.20 	welfare, and safety.

72.21 	ARTICLE 7
72.22 	EARLY CHILDHOOD PROVISIONS

72.23 	Section 1. Minnesota Statutes 2004, section 119A.50, subdivision 1, is amended to read:
72.24 		Subdivision 1.Department of Education. The Department of Education is the 
72.25 	state agency responsible for administering the Head Start program. The commissioner 
72.26 	of education may make grantsshall allocate funds according to the formula in section 
72.27 	119A.52 to public or private nonprofit agencies for the purpose of providing supplemental 
72.28 	funds for the federal Head Start program.

72.29 	Sec. 2. Minnesota Statutes 2004, section 119A.52, is amended to read:
72.30 	119A.52 DISTRIBUTION OF APPROPRIATION AND PROGRAM 
72.31 	COORDINATION.
72.32 	The commissioner of education must distribute money appropriated for that purpose 
72.33 	to federally designated Head Start program granteesprograms to expand services and to 
72.34 	serve additional low-income children. Money must be allocated to each project Head Start 
73.1 	grantee in existence on the effective date of Laws 1989, chapter 282. Migrant and Indian 
73.2 	reservation granteesprograms must be initially allocated money based on the grantees'
73.3 	programs' share of federal funds. The remaining money must be initially allocated to the 
73.4 	remaining local agencies based equally on the agencies' share of federal funds and on the 
73.5 	proportion of eligible children in the agencies' service area who are not currently being 
73.6 	served. A Head Start grantee must be funded at a per child rate equal to its contracted, 
73.7 	federally funded base level for program accounts 20, 22, and 25 at the start of the fiscal 
73.8 	year. In allocating funds under this paragraph, the commissioner of education must assure 
73.9 	that each Head Start granteeprogram in existence in 1993 is allocated no less funding 
73.10 	in any fiscal year than was allocated to that granteeprogram in fiscal year 1993. The 
73.11 	commissioner may provide additional funding to grantees for start-up costs incurred by 
73.12 	grantees due to the increased number of children to be served. Before paying money to 
73.13 	the grantees programs, the commissioner must notify each granteeprogram of its initial 
73.14 	allocation, how the money must be used, and the number of low-income children that 
73.15 	mustto be served with the allocation based upon the federally funded per child rate. 
73.16 	Each granteeprogram must present a work plan to the commissioner for approval. The 
73.17 	work plan must include the estimated number of low-income children and families it will 
73.18 	be able to serve, a description of the program design and service delivery area which 
73.19 	meets the needs of and encourages access by low-income working families, a program 
73.20 	design that ensures fair and equitable access to Head Start services for all populations and 
73.21 	parts of the service area, and a plan for coordinating services to maximize assistance 
73.22 	for child care costs available to families under chapter 119B.under section 119A.535. 
73.23 	For any grantee that cannot utilize its full allocation, the commissioner must reduce the 
73.24 	allocation proportionately. Money available after the initial allocations are reduced must 
73.25 	be redistributed to eligible grantees.

73.26 	Sec. 3. Minnesota Statutes 2004, section 119A.53, is amended to read:
73.27 	119A.53 FEDERAL REQUIREMENTS.
73.28 	GranteesPrograms and the commissioner shall comply with federal regulations 
73.29 	governing the federal Head Start program, except for funding for innovative initiatives 
73.30 	under section  119A.52 119A.535 as approved by the commissioner, which may be used to 
73.31 	operate differently than federal Head Start regulations. If a state statute or rule conflicts 
73.32 	with a federal statute or regulation, the state statute or rule prevails. 

73.33 	Sec. 4. [119A.535] APPLICATION REQUIREMENTS.
74.1 	Eligible Head Start organizations must submit a plan to the department for approval 
74.2 	on a form and in the manner prescribed by the commissioner. The plan must include:
74.3 	(1) the estimated number of low-income children and families the program will be 
74.4 	able to serve;
74.5 	(2) a description of the program design and service delivery area which meets the 
74.6 	needs of and encourages access by low-income working families;
74.7 	(3) a program design that ensures fair and equitable access to Head Start services for 
74.8 	all populations and parts of the service area;
74.9 	(4) a plan for coordinating services to maximize assistance for child care costs 
74.10 	available to families under chapter 119B; and
74.11 	(5) identification of regular Head Start, early Head Start, and innovative services 
74.12 	based upon demonstrated needs to be provided.

74.13 	Sec. 5. Minnesota Statutes 2004, section 119A.545, is amended to read:
74.14 	119A.545 AUTHORITY TO WAIVE REQUIREMENTS DURING DISASTER 
74.15 	PERIODS.
74.16 	The commissioner of education may waive requirements under sections  119A.50
74.17 	to  119A.53 119A.535, for up to nine months after the disaster, for Head Start grantees
74.18 	programs in areas where a federal disaster has been declared under United States Code, 
74.19 	title 42, section 5121, et seq., or the governor has exercised authority under chapter 12. 
74.20 	The commissioner shall notify the chairs of the appropriate senate Family and Early 
74.21 	Childhood Education Budget Division, the senate Education Finance Committee, theand 
74.22 	house Family and Early Childhood Education Finance Division, the house Education 
74.23 	Committee, and the house Ways and Means Committeecommittees ten days before the 
74.24 	effective date of any waiver granted under this section. 

74.25 	Sec. 6. Minnesota Statutes 2004, section 121A.17, subdivision 3, is amended to read:
74.26 		Subd. 3.Screening program. (a) A screening program must include at least the 
74.27 	following components: developmental assessments, hearing and vision screening or 
74.28 	referral, immunization review and referral, the child's height and weight, identification 
74.29 	of risk factors that may influence learning, an interview with the parent about the child, 
74.30 	and referral for assessment, diagnosis, and treatment when potential needs are identified. 
74.31 	The district and the person performing or supervising the screening must provide a 
74.32 	parent or guardian with clear written notice that the parent or guardian may decline to 
74.33 	answer questions or provide information about family circumstances that might affect 
74.34 	development and identification of risk factors that may influence learning. The notice 
75.1 	must clearly state that declining to answer questions or provide information does not 
75.2 	prevent the child from being enrolled in kindergarten or first grade if all other screening 
75.3 	components are met. If a parent or guardian is not able to read and comprehend the written 
75.4 	notice, the district and the person performing or supervising the screening must convey 
75.5 	the information in another manner. The notice must also inform the parent or guardian 
75.6 	that a child need not submit to the district screening program if the child's health records 
75.7 	indicate to the school that the child has received comparable developmental screening 
75.8 	performed within the preceding 365 days by a public or private health care organization or 
75.9 	individual health care provider. The notice must be given to a parent or guardian at the 
75.10 	time the district initially provides information to the parent or guardian about screening 
75.11 	and must be given again at the screening location.
75.12 	(b) The social/emotional component of the developmental assessment must be 
75.13 	completed using a social/emotional screening instrument approved by the commissioner 
75.14 	of education, and consistent with the standards of the commissioners of health and human 
75.15 	services.
75.16 	(c) All screening components shall be consistent with the standards of the state 
75.17 	commissioner of health for early developmental screening programs. A developmental 
75.18 	screening program must not provide laboratory tests or a physical examination to any 
75.19 	child. The district must request from the public or private health care organization or the 
75.20 	individual health care provider the results of any laboratory test or physical examination 
75.21 	within the 12 months preceding a child's scheduled screening.
75.22 	(c) (d) If a child is without health coverage, the school district must refer the child to 
75.23 	an appropriate health care provider.
75.24 	(d) (e) A board may offer additional components such as nutritional, physical and 
75.25 	dental assessments, review of family circumstances that might affect development, blood 
75.26 	pressure, laboratory tests, and health history.
75.27 	(e) (f) If a statement signed by the child's parent or guardian is submitted to the 
75.28 	administrator or other person having general control and supervision of the school that 
75.29 	the child has not been screened because of conscientiously held beliefs of the parent 
75.30 	or guardian, the screening is not required.

75.31 	Sec. 7. Minnesota Statutes 2005 Supplement, section 121A.17, subdivision 5, is 
75.32 	amended to read:
75.33 		Subd. 5.Developmental screening program information. The board must inform 
75.34 	each resident family with a child eligible to participate in the developmental screening 
75.35 	program about the availability of the program and the state's requirement that a child 
76.1 	receive a developmental screening or provide health records indicating that the child 
76.2 	received a comparable developmental screening from a public or private health care 
76.3 	organization or individual health care provider not later than 30 days after the first 
76.4 	day of attending kindergarten in a public school. A school district must inform all 
76.5 	resident families with eligible children under age seven that their children may receive a 
76.6 	developmental screening conducted either by the school district or by a public or private 
76.7 	health care organization or individual health care provider, and that if a statement signed 
76.8 	by the child's parent or guardian is submitted to the administrator or other person having 
76.9 	general control and supervision of the school that the child has not been screened because 
76.10 	of conscientiously held beliefs of the parent or guardian, the screening is not required.

76.11 	Sec. 8. Minnesota Statutes 2004, section 124D.13, subdivision 2, is amended to read:
76.12 		Subd. 2.Program characteristics. (a) Early childhood family education programs 
76.13 	are programs for children in the period of life from birth to kindergarten, for the parents
76.14 	and other relatives of such these children, and for expectant parents. To the extent 
76.15 	that funds are insufficient to provide programs for all children, early childhood family 
76.16 	education programs should emphasize programming for a child from birth to age three 
76.17 	and encourage parents and other relatives to involve four- and five-year-old children in 
76.18 	school readiness programs, and other public and nonpublic early learning programs. Early 
76.19 	childhood family education programs may include the following:
76.20 	(1) programs to educate parents and other relatives about the physical, mental, 
76.21 	and emotional development of children;
76.22 	(2) programs to enhance the skills of parents and other relatives in providing for 
76.23 	their children's learning and development;
76.24 	(3) learning experiences for children and parents and other relatives that promote 
76.25 	children's development;
76.26 	(4) activities designed to detect children's physical, mental, emotional, or behavioral 
76.27 	problems that may cause learning problems;
76.28 	(5) activities and materials designed to encourage self-esteem, skills, and behavior 
76.29 	that prevent sexual and other interpersonal violence;
76.30 	(6) educational materials which may be borrowed for home use;
76.31 	(7) information on related community resources;
76.32 	(8) programs to prevent child abuse and neglect;
76.33 	(9) other programs or activities to improve the health, development, and school 
76.34 	readiness of children; or
76.35 	(10) activities designed to maximize development during infancy.
77.1 	The programs must not include activities for children that do not require substantial 
77.2 	involvement of the children's parents or other relatives. The programs must be reviewed 
77.3 	periodically to assure the instruction and materials are not racially, culturally, or sexually 
77.4 	biased. The programs must encourage parents to be aware of practices that may affect 
77.5 	equitable development of children.
77.6 	(b) For the purposes of this section, "relative" or "relatives" means noncustodial 
77.7 	grandparents or other persons related to a child by blood, marriage, adoption, or foster 
77.8 	placement, excluding parents.

77.9 	Sec. 9. Minnesota Statutes 2004, section 124D.13, subdivision 3, is amended to read:
77.10 		Subd. 3.Substantial parental involvement. The requirement of substantial 
77.11 	parentalor other relative involvement in subdivision 2 means that:
77.12 	(a) parents or other relatives must be physically present much of the time in classes 
77.13 	with their children or be in concurrent classes;
77.14 	(b) parenting education or family education must be an integral part of every early 
77.15 	childhood family education program;
77.16 	(c) early childhood family education appropriations must not be used for traditional 
77.17 	day care or nursery school, or similar programs; and
77.18 	(d) the form of parent involvement common to kindergarten, elementary school, or 
77.19 	early childhood special education programs such as parent conferences, newsletters, and 
77.20 	notes to parents do not qualify a program under subdivision 2.

77.21 	Sec. 10. Minnesota Statutes 2005 Supplement, section 124D.175, is amended to read:
77.22 	124D.175 MINNESOTA EARLY LEARNING FOUNDATION PROPOSAL.
77.23 	(a) The commissioner must implement an early childhood development grant 
77.24 	program for low-income and other challenged families that increases the effectiveness 
77.25 	and expands the capacity of public and nonpublic early childhood development programs, 
77.26 	which may include child care programs, and leads to improved early childhood parent 
77.27 	education and children's kindergarten readiness. The program must include:
77.28 	(1) grant awards to existing early childhood development program providers that 
77.29 	also provide parent education programs and to qualified providers proposing to implement 
77.30 	pilot programs for this same purpose;
77.31 	(2) grant awards to enable low-income families to participate in these programs;
77.32 	(3) grant awards to improve overall programmatic quality; and
77.33 	(4) an evaluation of the programmatic and financial efficacy of all these programs, 
77.34 	which may be performed using measures of services, staffing, and management systems 
78.1 	that provide consistent information about system performance, show trends, confirm 
78.2 	successes, and identify potential problems in early childhood development programs.
78.3 	This grant program must not supplant existing early childhood development programs 
78.4 	or child care funds.
78.5 	(b) The commissioner must contract withmake a grant to a private nonprofit, section 
78.6 	501(c)(3) organization to implement the requirements of paragraph (a). Notwithstanding 
78.7 	any laws to the contrary, the private nonprofit organization may contract with the 
78.8 	University of Minnesota for purposes of implementing paragraph (a), clause (4). The 
78.9 	private nonprofit organization must be governed by a board of up to 19 directors composed 
78.10 	of members from the public and nonpublic sectors, where the nonpublic sector members 
78.11 	compose a simple majority of board members and where the public sector members are 
78.12 	state and local government officials, kindergarten through grade 12 or postsecondary 
78.13 	educators, and early childhood providers appointed by the governor. Membership on the 
78.14 	board of directors by a state agency official are work duties for the official and are not a 
78.15 	conflict of interest under section 43A.38. The board of directors must appoint an executive 
78.16 	director and must seek advice from geographically and, ethnically, and economically
78.17 	diverse parents of young children and representatives of early childhood development 
78.18 	providers, kindergarten through grade 12 and postsecondary educators, public libraries, 
78.19 	and the business sector.
78.20 	The governor shall appoint up to seven voting members that include representatives 
78.21 	of:
78.22 	(1) kindergarten through grade 12 or postsecondary educators;
78.23 	(2) early childhood development providers, including child care providers;
78.24 	(3) local school boards;
78.25 	(4) nonprofit organizations with expertise in early childhood development; and
78.26 	(5) federal early childhood programs serving low-income children. 
78.27 	The governor shall ensure that, to the extent possible, the board of directors is 
78.28 	balanced according to geography, race, ethnicity, age, gender, and economic status.
78.29 	The commissioners of education and human services shall be nonvoting members 
78.30 	of the private nonprofit organization. The speaker of the house of representatives, the 
78.31 	minority leader of the house of representatives, the majority leader of the senate, and the 
78.32 	minority leader of the senate shall each appoint a legislator to be nonvoting members of 
78.33 	the board.
78.34 	 The board of directors is subject to the open meeting law under chapter 13D. 
78.35 	All other terms and conditions under which board members serve and operate must be 
78.36 	described in the articles and bylaws of the organization. The private nonprofit organization 
79.1 	is not a state agency and is not subject to laws governing public agencies except the 
79.2 	provisions of chapter 13, salary limits under section 15A.0815, subdivision 2, and audits 
79.3 	by the legislative auditor under chapter 3 apply.
79.4 	(c) This section expires June 30, 2011. If no state appropriation is made for purposes 
79.5 	of this section, the commissioner must not implement paragraphs (a) and (b).

79.6 	EFFECTIVE DATE. This section, paragraph (b), is effective retroactively from 
79.7 	July 1, 2005.

79.8 	Sec. 11. Minnesota Statutes 2004, section 245A.023, is amended to read:
79.9 	245A.023 IN-SERVICE TRAINING.
79.10 	(a) For purposes of child care centers, in-service training must be completed within 
79.11 	the license period for which it is required. In-service training completed by staff persons 
79.12 	as required must be transferable upon a staff person's change in employment to another 
79.13 	child care program. License holders shall record all staff in-service training on forms 
79.14 	prescribed by the commissioner of human services.
79.15 	(b) For purposes of family and group family child care, the license holder and each 
79.16 	primary caregiver must complete 12 hours of training each year. For purposes of this 
79.17 	section, a primary caregiver is an adult caregiver who provides services in the licensed 
79.18 	setting more than 30 days in any 12-month period.

79.19 	Sec. 12. Minnesota Statutes 2004, section 245A.14, is amended by adding a 
79.20 	subdivision to read:
79.21 		Subd. 9a.Early childhood development training. (a) For purposes of child 
79.22 	care centers, the director and all staff hired after July 1, 2006, shall complete and 
79.23 	document at least two hours of early childhood development training within the first year 
79.24 	of employment. Training completed under this subdivision may be used to meet the 
79.25 	requirements of Minnesota Rules, part 9503.0035, subparts 1 and 4.
79.26 	(b) For purposes of family and group family child care, the license holder and 
79.27 	each adult caregiver who provides care in the licensed setting more than 30 days in any 
79.28 	12-month period shall complete and document at least two hours of early childhood 
79.29 	development training within the first year of licensure or employment. Training completed 
79.30 	under this subdivision may be used to meet the requirements of Minnesota Rules, part 
79.31 	9502.0385, subparts 2 and 3.
79.32 	(c) Notwithstanding paragraphs (a) and (b), individuals are exempt from this 
79.33 	requirement if they:
80.1 	(1) have taken a three-credit course on early childhood development within the 
80.2 	past five years;
80.3 	(2) have received a baccalaureate or masters degree in early childhood education or 
80.4 	school age child care within the past five years;
80.5 	(3) are licensed in Minnesota as a prekindergarten teacher, an early childhood 
80.6 	educator, a kindergarten to sixth grade teacher with a prekindergarten specialty, an 
80.7 	early childhood special education teacher, or an elementary teacher with a kindergarten 
80.8 	endorsement; or
80.9 	(4) have received a baccalaureate degree with a Montessori certificate within the 
80.10 	past five years.

80.11 	Sec. 13. Laws 2005, First Special Session chapter 5, article 7, section 20, subdivision 
80.12 	5, is amended to read:
80.13 	
80.14 	Subd. 5. Head Start program. For Head Start programs  under Minnesota Statutes, 
80.15 	section 119A.52:  

80.16		$
	19,100,000
	.....
	2006
	
80.17		$
	19,100,000
	.....
	2007
	
80.18 	Any balance in the first year does not cancel but is available in the second year.

80.19 	Sec. 14. EARLY CHILDHOOD AND EARLY ELEMENTARY GRADE 
80.20 	INTEGRATION.
 80.21 	For fiscal years 2007 through 2017, a school district, charter school, Head Start 
80.22 	program, or any relevant public or private entity may work together to develop a pilot 
80.23 	program to demonstrate the efficacy of integrating early childhood education and care with 
80.24 	early elementary grades. A district, charter school, or Head Start program that develops 
80.25 	an early childhood integration pilot program must use existing funds to pay for the pilot 
80.26 	program's cost. School districts, charter schools, Head Start programs, and public or 
80.27 	private entities that participate in this pilot program are encouraged to enter into an 
80.28 	agreement to provide early education and care for children under a unified administrative 
80.29 	structure that establishes an education continuum for children during the prekindergarten, 
80.30 	kindergarten, and postkindergarten years through grade 3. A copy of the agreement 
80.31 	must be sent to the commissioner of education. School districts, charter schools, Head 
80.32 	Start programs, and public or private entities that participate in this pilot program are 
81.1 	encouraged to provide for the education, support, and empowerment of parents and special 
81.2 	education for children as needed.
81.3 	This provision does not supercede existing agreements and arrangements between 
81.4 	school districts or schools and early childhood education programs that are permitted 
81.5 	under existing law.

81.6 	Sec. 15. RAMSEY COUNTY CHILD CARE PILOT PROJECT.
 81.7 		Subdivision 1.Authorization for pilot project. The commissioner of human 
81.8 	services shall approve a pilot project in Ramsey County that will help teen parents remain 
81.9 	in school and complete the student's education while providing child care assistance for 
81.10 	the student's child. The pilot project shall increase coordination between services from 
81.11 	the Minnesota family investment program, the child care assistance program, and area 
81.12 	public schools with the goal of removing barriers that prevent teen parents from pursuing 
81.13 	educational goals.
81.14 		Subd. 2.Program design and implementation. The Ramsey County child care 
81.15 	pilot project shall be established to improve the coordination of services to teen parents. 
81.16 	The pilot project shall:
81.17 	(1) provide a streamlined process for sharing information between the Minnesota 
81.18 	family investment program under Minnesota Statutes, chapter 256J, the child care 
81.19 	assistance program under Minnesota Statutes, chapter 119B, and public schools in 
81.20 	Ramsey County;
81.21 	(2) determine eligibility for child care assistance using the teen parent's eligibility 
81.22 	for reduced-cost or free school lunches in place of income verification; and
81.23 	(3) waive the child care parent fee under Minnesota Statutes, section 119B.12, 
81.24 	subdivision 2, for teen parents whose income is below poverty level and whose children 
81.25 	attend school-based child care centers.
81.26 		Subd. 3.Costs. Increased costs incurred under this section shall not increase the 
81.27 	basic sliding fee appropriation and shall not affect funds available for distribution under 
81.28 	Minnesota Statutes, sections 119B.06 and 119B.08.

81.29 	Sec. 16.  REPEALER.
 81.30 	Minnesota Statutes 2004, section 119A.51, is repealed.