1.1 	A bill for an act
1.2 	relating to education; providing for prekindergarten through grade 12 
1.3 	education, including general education, education excellence, special education, 
1.4 	facilities, accounting, and technology, state agencies, technical and conforming 
1.5 	amendments, and early childhood education; providing for postsecondary 
1.6 	education; authorizing rulemaking; appropriating money;amending Minnesota 
1.7 	Statutes 2004, sections 119A.50, subdivision 1; 119A.52; 119A.53; 119A.545; 
1.8 	120A.20, subdivision 1; 120A.22, subdivision 3; 120B.021, subdivision 1, by 
1.9 	adding a subdivision; 120B.023; 120B.024; 121A.035; 121A.15, subdivision 
1.10 	10; 121A.17, subdivision 3; 122A.18, subdivision 2; 123A.06, subdivision 2; 
1.11 	123A.44; 123A.441; 123A.442; 123A.443; 123B.10, subdivision 1; 123B.77, 
1.12 	subdivision 3, by adding a subdivision; 123B.90, subdivision 2; 123B.91, 
1.13 	by adding a subdivision; 124D.02, subdivisions 2, 4; 124D.095, subdivision 
1.14 	3; 124D.096; 124D.10, subdivision 16; 124D.11, subdivision 9; 124D.13, 
1.15 	subdivisions 2, 3; 124D.61; 124D.68, subdivision 3; 125A.02, subdivision 1; 
1.16 	125A.515, subdivisions 1, 3, 5, 6, 7, 9, 10; 125A.62, subdivision 1; 125A.63, 
1.17 	subdivision 4; 125A.65, subdivisions 3, 4, 6, 8, 10; 125A.69, subdivision 3; 
1.18 	125A.75, subdivision 1, by adding a subdivision; 126C.05, subdivision 1; 
1.19 	126C.10, subdivision 6, by adding subdivisions; 126C.44; 127A.41, subdivision 
1.20 	2; 135A.031, subdivision 7, by adding subdivisions; 135A.053, subdivision 
1.21 	2; 136A.15, by adding a subdivision; 136A.16, by adding a subdivision; 
1.22 	136A.162; 136A.1701, by adding a subdivision; 136A.233, subdivision 3; 
1.23 	136F.02, subdivision 1; 136F.42, subdivision 1; 136F.71, subdivision 2, by 
1.24 	adding a subdivision; 169.01, subdivision 6; 169.447, subdivision 2; 169.4501, 
1.25 	subdivisions 1, 2; 169.4502, subdivision 5; 169.4503, subdivision 20; 171.321, 
1.26 	subdivisions 4, 5; 181.101; 245A.023; 245A.14, by adding a subdivision; 
1.27 	299F.30; 626.556, subdivisions 3b, 3c; Minnesota Statutes 2005 Supplement, 
1.28 	sections 120B.021, subdivision 1a; 120B.11, subdivision 2; 120B.131, 
1.29 	subdivision 2; 121A.17, subdivision 5; 122A.414, subdivisions 2b, 3; 123B.04, 
1.30 	subdivision 2; 123B.76, subdivision 3; 123B.92, subdivisions 1, 5; 124D.095, 
1.31 	subdivision 4; 124D.175; 124D.68, subdivision 2; 125A.11, subdivision 1; 
1.32 	125A.79, subdivision 1; 126C.10, subdivisions 24, 31; 126C.17, subdivision 9; 
1.33 	126C.43, subdivision 2; 127A.45, subdivision 10; 135A.52, subdivisions 1, 2; 
1.34 	626.556, subdivisions 2, 3;  Laws 2005, First Special Session chapter 5, article 
1.35 	2, section 84, subdivision 13; article 7, section 20, subdivision 5; proposing 
1.36 	coding for new law in Minnesota Statutes, chapters 119A; 121A; 135A; 136A; 
1.37 	repealing Minnesota Statutes 2004, sections 119A.51; 120A.20, subdivision 3; 
1.38 	121A.23; 123B.749; 125A.10; 125A.515, subdivision 2; 135A.031, subdivision 
2.1 	5; 135A.033; 136A.15, subdivision 5; 136A.1702; 169.4502, subdivision 15; 
2.2 	169.4503, subdivisions 17, 18, 26; Minnesota Statutes 2005 Supplement, section 
2.3 	135A.031, subdivisions 3, 4; Minnesota Rules, parts 4850.0011, subparts 9, 10, 
2.4 	14, 27; 4850.0014, subpart 1.
2.5 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

2.6 	ARTICLE 1
2.7 	GENERAL EDUCATION

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

2.30 	Sec. 2. Minnesota Statutes 2004, section 123A.06, subdivision 2, is amended to read:
2.31 		Subd. 2.People to be served. A center shall provide programs for secondary 
2.32 	pupils and adults. A center may also provide programs and services for elementary and 
2.33 	secondary pupils who are not attending the center to assist them in being successful in 
2.34 	school. A center shall use research-based best practices for serving limited English 
2.35 	proficient students and their parents. An individual education plan team may identify a 
3.1 	center as an appropriate placement to the extent a center can provide the student with the 
3.2 	appropriate special education services described in the student's plan. Pupils eligible to 
3.3 	be served are those age five to adults 22 and older who qualify under the graduation 
3.4 	incentives program in section  124D.68, subdivision 2, those enrolled under section 
3.5 	124D.02, subdivision 2, or those pupils who are eligible to receive special education 
3.6 	services under sections  125A.03 to  125A.24, and  125A.65. 

3.7 	Sec. 3. Minnesota Statutes 2005 Supplement, section 123B.76, subdivision 3, is 
3.8 	amended to read:
3.9 		Subd. 3.Expenditures by building. (a) For the purposes of this section, "building" 
3.10 	means education site as defined in section 123B.04, subdivision 1.
3.11 	(b) Each district shall maintain separate accounts to identify general fund 
3.12 	expenditures for each building. All expenditures for regular instruction, secondary 
3.13 	vocational instruction, and school administration must be reported to the department 
3.14 	separately for each building. All expenditures for special education instruction, 
3.15 	instructional support services, and pupil support services provided within a specific 
3.16 	building must be reported to the department separately for each building. Salary 
3.17 	expenditures reported by building must reflect actual salaries for staff at the building and 
3.18 	must not be based on districtwide averages. All other general fund expenditures may be 
3.19 	reported by building or on a districtwide basis.
3.20 	(c) The department must annually report information showing school district general 
3.21 	fund expenditures per pupil by program category for each building and estimated school 
3.22 	district general fund revenue generated by pupils attending each building on its Web 
3.23 	site. For purposes of this report:
3.24 	(1) expenditures not reported by building shall be allocated among buildings on a 
3.25 	uniform per pupil basis;
3.26 	(2) basic skills revenue shall be allocated according to section 126C.10, subdivision 
3.27 	4;
3.28 	(3) secondary sparsity revenue and elementary sparsity revenue shall be allocated 
3.29 	according to section 126C.10, subdivisions 7 and 8;
3.30 	(4) alternative teacher compensation revenue shall be allocated according to section 
3.31 	122A.415, subdivision 1;
3.32 	(5) other general education revenue shall be allocated on a uniform per pupil unit 
3.33 	basis;
3.34 	(5) (6) first grade preparedness aid shall be allocated according to section 124D.081;
4.1 	(6) (7) state and federal special education aid and Title I aid shall be allocated in 
4.2 	proportion to district expenditures for these programs by building; and
4.3 	(7)(8) other general fund revenues shall be allocated on a uniform per pupil basis, 
4.4 	except that the department may allocate other revenues attributable to specific buildings 
4.5 	directly to those buildings.

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

4.20 	Sec. 5. Minnesota Statutes 2004, section 124D.02, subdivision 4, is amended to read:
4.21 		Subd. 4.Part-time student fee. Notwithstanding the provisions of sections  
4.22 	120A.20 and  123B.37, a board may charge a part-time student enrolled pursuant to 
4.23 	subdivision 2 a reasonable fee for a class or program. 

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

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

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

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

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

8.20 	EFFECTIVE DATE. This section is effective for revenue for fiscal year 2007 
8.21 	and later.

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

9.1 	EFFECTIVE DATE. This section is effective for revenue for fiscal year 2007 
9.2 	and later.

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

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

9.10 	Sec. 13. Minnesota Statutes 2005 Supplement, section 126C.17, subdivision 9, is 
9.11 	amended to read:
9.12 		Subd. 9.Referendum revenue. (a) The revenue authorized by section 126C.10, 
9.13 	subdivision 1, may be increased in the amount approved by the voters of the district at a 
9.14 	referendum called for the purpose. The referendum may be called by the board or shall be 
9.15 	called by the board upon written petition of qualified voters of the district. The referendum 
9.16 	must be conducted one or two calendar years before the increased levy authority, if 
9.17 	approved, first becomes payable. Only one election to approve an increase may be held 
9.18 	in a calendar year. Unless the referendum is conducted by mail under paragraph (g), the 
9.19 	referendum must be held on the first Tuesday after the first Monday in November. The 
9.20 	ballot must state the maximum amount of the increased revenue per resident marginal cost 
9.21 	pupil unit. The ballot may state a schedule, determined by the board, of increased revenue 
9.22 	per resident marginal cost pupil unit that differs from year to year over the number of 
9.23 	years for which the increased revenue is authorized or may state that the amount shall 
9.24 	increase annually by the rate of inflation. For this purpose, the rate of inflation shall be the 
9.25 	annual inflationary increase calculated under subdivision 2, paragraph (b). The ballot may 
9.26 	state that existing referendum levy authority is expiring. In this case, the ballot may also 
9.27 	compare the proposed levy authority to the existing expiring levy authority, and express 
9.28 	the proposed increase as the amount, if any, over the expiring referendum levy authority. 
9.29 	The ballot must designate the specific number of years, not to exceed ten, for which the 
9.30 	referendum authorization applies. The ballot, including a ballot on the question to revoke 
9.31 	or reduce the increased revenue amount under paragraph (c), must abbreviate the term 
9.32 	"per resident marginal cost pupil unit" as "per pupil." The notice required under section 
9.33 	275.60 may be modified to read, in cases of renewing existing levies:
10.1 	"BY VOTING "YES" ON THIS BALLOT QUESTION, YOU MAY BE VOTING 
10.2 	FOR A PROPERTY TAX INCREASE."
10.3 	The ballot may contain a textual portion with the information required in this 
10.4 	subdivision and a question stating substantially the following:
10.5 	"Shall the increase in the revenue proposed by (petition to) the board of ........., 
10.6 	School District No. .., be approved?"
10.7 	If approved, an amount equal to the approved revenue per resident marginal cost 
10.8 	pupil unit times the resident marginal cost pupil units for the school year beginning in 
10.9 	the year after the levy is certified shall be authorized for certification for the number of 
10.10 	years approved, if applicable, or until revoked or reduced by the voters of the district at a 
10.11 	subsequent referendum.
10.12 	(b) The board must prepare and deliver by first class mail at least 15 days but no more 
10.13 	than 30 days before the day of the referendum to each taxpayer a notice of the referendum 
10.14 	and the proposed revenue increase. The board need not mail more than one notice to any 
10.15 	taxpayer. For the purpose of giving mailed notice under this subdivision, owners must be 
10.16 	those shown to be owners on the records of the county auditor or, in any county where 
10.17 	tax statements are mailed by the county treasurer, on the records of the county treasurer. 
10.18 	Every property owner whose name does not appear on the records of the county auditor 
10.19 	or the county treasurer is deemed to have waived this mailed notice unless the owner 
10.20 	has requested in writing that the county auditor or county treasurer, as the case may be, 
10.21 	include the name on the records for this purpose. The notice must project the anticipated 
10.22 	amount of tax increase in annual dollars for typical residential homesteads, agricultural 
10.23 	homesteads, apartments, and commercial-industrial property within the school district.
10.24 	The notice for a referendum may state that an existing referendum levy is expiring 
10.25 	and project the anticipated amount of increase over the existing referendum levy in 
10.26 	the first year, if any, in annual dollars for typical residential homesteads, agricultural 
10.27 	homesteads, apartments, and commercial-industrial property within the district.
10.28 	The notice must include the following statement: "Passage of this referendum will 
10.29 	result in an increase in your property taxes." However, in cases of renewing existing 
10.30 	levies, the notice may include the following statement: "Passage of this referendum may 
10.31 	result in an increase in your property taxes."
10.32 	(c) A referendum on the question of revoking or reducing the increased revenue 
10.33 	amount authorized pursuant to paragraph (a) may be called by the board and shall be called 
10.34 	by the board upon the written petition of qualified voters of the district. A referendum to 
10.35 	revoke or reduce the revenue amount must state the amount per resident marginal cost 
10.36 	pupil unit by which the authority is to be reduced. Revenue authority approved by the 
11.1 	voters of the district pursuant to paragraph (a) must be available to the school district at 
11.2 	least once before it is subject to a referendum on its revocation or reduction for subsequent 
11.3 	years. Only one revocation or reduction referendum may be held to revoke or reduce 
11.4 	referendum revenue for any specific year and for years thereafter.
11.5 	(d) A petition authorized by paragraph (a) or (c) is effective if signed by a number of 
11.6 	qualified voters in excess of 15 percent of the registered voters of the district on the day 
11.7 	the petition is filed with the board. A referendum invoked by petition must be held on the 
11.8 	date specified in paragraph (a).
11.9 	(e) The approval of 50 percent plus one of those voting on the question is required to 
11.10 	pass a referendum authorized by this subdivision.
11.11 	(f) At least 15 days before the day of the referendum, the district must submit a 
11.12 	copy of the notice required under paragraph (b) to the commissioner and to the county 
11.13 	auditor of each county in which the district is located. Within 15 days after the results 
11.14 	of the referendum have been certified by the board, or in the case of a recount, the 
11.15 	certification of the results of the recount by the canvassing board, the district must notify 
11.16 	the commissioner of the results of the referendum.

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

11.19 	Sec. 14. Minnesota Statutes 2005 Supplement, section 126C.43, subdivision 2, is 
11.20 	amended to read:
11.21 		Subd. 2.Payment to unemployment insurance program trust fund by state 
11.22 	and political subdivisions. (a) A district may levy the amount necessary (i) (1) to pay 
11.23 	the district's obligations under section 268.052, subdivision 1, and (ii) (2) to pay for job 
11.24 	placement services offered to employees who may become eligible for benefits pursuant 
11.25 	to section 268.085 for the fiscal year the levy is certified.
11.26 	(b) Districts with a balance remaining in their reserve for reemployment as of June 
11.27 	30, 2003, may not expend the reserved funds for future reemployment expenditures. Each 
11.28 	year a levy reduction must be made to return these funds to taxpayers. The amount of 
11.29 	the levy reduction must be equal to the lesser of: (1) the remaining reserved balance for 
11.30 	reemployment, or (2) the amount of the district's current levy under paragraph (a).

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

11.32 	Sec. 15. Minnesota Statutes 2004, section 126C.44, is amended to read:
11.33 	126C.44 SAFE SCHOOLS LEVY.
12.1 	Each district may make a levy on all taxable property located within the district for 
12.2 	the purposes specified in this section. The maximum amount which may be levied for all 
12.3 	costs under this section shall be equal to $27 multiplied by the district's adjusted marginal 
12.4 	cost pupil units for the school year. The proceeds of the levy must be reserved and used 
12.5 	for directly funding the following purposes or for reimbursing the cities and counties who 
12.6 	contract with the district for the following purposes: (1) to pay the costs incurred for the 
12.7 	salaries, benefits, and transportation costs of peace officers and sheriffs for liaison in 
12.8 	services in the district's schools; (2) to pay the costs for a drug abuse prevention program 
12.9 	as defined in section  609.101, subdivision 3, paragraph (e), in the elementary schools; (3) 
12.10 	to pay the costs for a gang resistance education training curriculum in the district's schools; 
12.11 	(4) to pay the costs for security in the district's schools and on school property; or (5) to 
12.12 	pay the costs for other crime prevention, drug abuse, student and staff safety, and violence 
12.13 	prevention measures taken by the school district. For expenditures under clause (1), the 
12.14 	district must initially attempt to contract for services to be provided by peace officers or 
12.15 	sheriffs with the police department of each city or the sheriff's department of the county 
12.16 	within the district containing the school receiving the services. If a local police department 
12.17 	or a county sheriff's department does not wish to provide the necessary services, the 
12.18 	district may contract for these services with any other police or sheriff's department 
12.19 	located entirely or partially within the school district's boundaries. The levy authorized 
12.20 	under this section is not included in determining the school district's levy limitations.

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

12.22 	Sec. 16. Minnesota Statutes 2005 Supplement, section 127A.45, subdivision 10, 
12.23 	is amended to read:
12.24 		Subd. 10.Payments to school nonoperating funds. Each fiscal year state general 
12.25 	fund payments for a district nonoperating fund must be made at the current year aid 
12.26 	payment percentage of the estimated entitlement during the fiscal year of the entitlement. 
12.27 	This amount shall be paid in 12 equal monthly installments. The amount of the actual 
12.28 	entitlement, after adjustment for actual data, minus the payments made during the fiscal 
12.29 	year of the entitlement must be paid prior to October 31 of the following school year. The 
12.30 	commissioner may make advance payments of debt service equalization aid and state-paid 
12.31 	tax credits  for a district's debt service fund earlier than would occur under the preceding 
12.32 	schedule if the district submits evidence showing a serious cash flow problem in the fund. 
12.33 	The commissioner may make earlier payments during the year and, if necessary, increase 
12.34 	the percent of the entitlement paid to reduce the cash flow problem.

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

13.2 	Sec. 17. ALTERNATIVE TEACHER COMPENSATION REVENUE FOR 
13.3 	SPECIAL SCHOOL DISTRICT NO. 6, SOUTH ST. PAUL.
 13.4 	Notwithstanding Minnesota Statutes, sections 122A.413, 122A.414, 122A.415, 
13.5 	and 126C.10, Special School District No. 6, South St. Paul, shall be eligible for 
13.6 	alternative teacher compensation revenue under Minnesota Statutes, section 122A.415, 
13.7 	for the elementary and middle years international baccalaureate pilot program. The 
13.8 	revenue generated from the alternative teacher compensation program must be used 
13.9 	for preinstructional startup costs, including staff, training, curriculum materials, and 
13.10 	preparation costs.

13.11 	EFFECTIVE DATE. This section is effective for revenue for fiscal years 2007 
13.12 	through 2011.

13.13 	Sec. 18.  REPEALER.
 13.14 	Minnesota Statutes 2004, section 120A.20, subdivision 3, is repealed.

13.15 	ARTICLE 2
13.16 	EDUCATION EXCELLENCE

13.17 	Section 1. Minnesota Statutes 2004, section 120A.22, subdivision 3, is amended to 
13.18 	read:
13.19 		Subd. 3.Parent defined; residency determined. (a) In this section and sections  
13.20 	120A.24 and  120A.26, "parent" means a parent, guardian, or other person having legal 
13.21 	custody of a child. 
13.22 	(b) In sections  125A.03 to  125A.24 and  125A.65, "parent" means a parent, guardian, 
13.23 	or other person having legal custody of a child under age 18. For an unmarried pupil age 
13.24 	18 or over, "parent" means the pupil unless a guardian or conservator has been appointed, 
13.25 	in which case it means the guardian or conservator. 
13.26 	(c) For purposes of sections  125A.03 to  125A.24 and  125A.65, the school district of 
13.27 	residence for an unmarried pupil age 18 or over who is a parent under paragraph (b) and 
13.28 	who is placed in a center for care and treatment, shall be the school district in which the 
13.29 	pupil's biological or adoptive parent or designated guardian resides. 
13.30 	(d) For a married pupil age 18 or over, the school district of residence is the school 
13.31 	district in which the married pupil resides.
14.1 	(e) If a district reasonably believes that a student does not meet the residency 
14.2 	requirements of the school district in which the student is attending school, the student 
14.3 	may be removed from the school only after the district sends the student's parents written 
14.4 	notice of the district's belief, including the facts upon which the belief is based, and an 
14.5 	opportunity to provide documentary evidence of residency in person to the superintendent 
14.6 	or designee, or, at the option of the parents, by sending the documentary evidence to the 
14.7 	superintendent, or a designee, who will then make a determination as to the residency 
14.8 	status of the student.

14.9 	Sec. 2. Minnesota Statutes 2004, section 120B.021, subdivision 1, is amended to read:
14.10 		Subdivision 1.Required academic standards. The following subject areas are 
14.11 	required for statewide accountability:
14.12 	(1) language arts;
14.13 	(2) mathematics;
14.14 	(3) science;
14.15 	(4) social studies, including history, geography, economics, and government and 
14.16 	citizenship;
14.17 	(5) health and physical education, for which locally developed academic standards 
14.18 	apply; and
14.19 	(6) the arts, for which statewide or locally developed academic standards apply, as 
14.20 	determined by the school district. Public elementary and middle schools must offer at least 
14.21 	three and require at least two of the following four arts areas: dance; music; theater; and 
14.22 	visual arts. Public high schools must offer at least three and require at least one of the 
14.23 	following five arts areas: media arts; dance; music; theater; and visual arts.
14.24 	The commissioner must submit proposed standards in science and social studies to 
14.25 	the legislature by February 1, 2004.
14.26 	For purposes of applicable federal law, the academic standards for language arts, 
14.27 	mathematics, and science apply to all public school students, except the very few students 
14.28 	with extreme cognitive or physical impairments for whom an individualized education 
14.29 	plan team has determined that the required academic standards are inappropriate. 
14.30 	An individualized education plan team that makes this determination must establish 
14.31 	alternative standards.
14.32 	A school district, no later than the 2007-2008 school year, must adopt graduation 
14.33 	requirements that meet or exceed state graduation requirements established in law or 
14.34 	rule. A school district that incorporates these state graduation requirements before the 
14.35 	2007-2008 school year must provide students who enter the 9th grade in or before 
15.1 	the 2003-2004 school year the opportunity to earn a diploma based on existing locally 
15.2 	established graduation requirements in effect when the students entered the 9th grade. 
15.3 	District efforts to develop, implement, or improve instruction or curriculum as a result 
15.4 	of the provisions of this section must be consistent with sections  120B.10,  120B.11, 
15.5 	and  120B.20. 
15.6 	At a minimum, school districts must maintain the same physical education and 
15.7 	health education requirements for students in kindergarten through grade 8 adopted for the 
15.8 	2005-2006 school year through the 2008-2009 school year. Before a revision of the local 
15.9 	health and physical education standards, a school district must consult the grade-specific 
15.10 	benchmarks developed by the Department of Education's health and physical education 
15.11 	quality teaching network for the six national physical education standards and the seven 
15.12 	national health standards.
15.13 	The commissioner must include the contributions of Minnesota American Indian 
15.14 	tribes and communities as they relate to each of the academic standards during the review 
15.15 	and revision of the required academic standards.

15.16 	Sec. 3. Minnesota Statutes 2005 Supplement, section 120B.021, subdivision 1a, 
15.17 	is amended to read:
15.18 		Subd. 1a.Rigorous course of study; waiver. (a) Upon receiving a student's 
15.19 	application signed by the student's parent or guardian, a school district, area learning 
15.20 	center, or charter school must declare that a student meets or exceeds a specific academic 
15.21 	standard required for graduation under this section if the local school board, the school 
15.22 	board of the school district in which the area learning center is located, or the charter 
15.23 	school board of directors determines that the student:
15.24 	(1) is participating in a course of study, including an advanced placement or 
15.25 	international baccalaureate course or program; a learning opportunity outside the 
15.26 	curriculum of the district, area learning center, or charter school; or an approved 
15.27 	preparatory program for employment or postsecondary education that is equally or more 
15.28 	rigorous than the corresponding state or local academic standard required by the district, 
15.29 	area learning center, or charter school;
15.30 	(2) would be precluded from participating in the rigorous course of study, learning 
15.31 	opportunity, or preparatory employment or postsecondary education program if the student 
15.32 	were required to achieve the academic standard to be waived; and
15.33 	(3) satisfactorily completes the requirements for the rigorous course of study, 
15.34 	learning opportunity, or preparatory employment or postsecondary education program.
16.1 	Consistent with the requirements of this section, the local school board, the school board 
16.2 	of the school district in which the area learning center is located, or the charter school 
16.3 	board of directors also may formally determine other circumstances in which to declare 
16.4 	that a student meets or exceeds a specific academic standard that the site requires for 
16.5 	graduation under this section.
16.6 	(b) A student who satisfactorily completes a postsecondary enrollment options 
16.7 	course or program under section 124D.09, or an advanced placement or international 
16.8 	baccalaureate course or program under section 120B.13, is not required to complete other 
16.9 	requirements of the academic standards corresponding to that specific rigorous course 
16.10 	of study.

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

16.12 	Sec. 4. Minnesota Statutes 2004, section 120B.021, is amended by adding a 
16.13 	subdivision to read:
16.14 		Subd. 2a.Curriculum. Notwithstanding any law to the contrary, the Department 
16.15 	of Education, a charter school, and a school district are prohibited from utilizing a 
16.16 	nonscientifically based curriculum, such as intelligent design, to meet the required science 
16.17 	academic standards under this section.

16.18 	Sec. 5. Minnesota Statutes 2004, section 120B.023, is amended to read:
16.19 	120B.023 BENCHMARKS.
16.20 		Subdivision 1.Benchmarks implement, supplement statewide academic 
16.21 	standards. (a) The commissioner must supplement required state academic standards with 
16.22 	grade-level benchmarks. High school benchmarks may cover more than one grade. The 
16.23 	benchmarks must implement statewide academic standards by specifying the academic 
16.24 	knowledge and skills that schools must offer and students must achieve to satisfactorily 
16.25 	complete a state standard. The commissioner must publish benchmarks are published to 
16.26 	inform and guide parents, teachers, school districts, and other interested persons and for to
16.27 	use in developing tests consistent with the benchmarks.
16.28 	(b) The commissioner shall publish benchmarks in the State Register and transmit 
16.29 	the benchmarks in any other manner that makes them accessible to the general public. The 
16.30 	commissioner may charge a reasonable fee for publications.
16.31 	(c) Once established, the commissioner may change the benchmarks only with 
16.32 	specific legislative authorization and after completing a review under paragraph (d)
16.33 	subdivision 2.
17.1 	(d) The commissioner must develop and implement a system for reviewing on 
17.2 	a four-year cycle each of the required academic standards and related benchmarks and 
17.3 	elective standards beginning in the 2006-2007 school year on a periodic cycle, consistent 
17.4 	with subdivision 2.
17.5 	(e) The benchmarks are not subject to chapter 14 and section  14.386 does not apply. 
17.6 		Subd. 2.Revisions and reviews required. (a) The commissioner of education must 
17.7 	revise and appropriately embed technology and information literacy standards consistent 
17.8 	with recommendations from school media specialists into the state's academic standards 
17.9 	and graduation requirements and implement a review cycle for state academic standards 
17.10 	and related benchmarks, consistent with this subdivision. During each review cycle, the 
17.11 	commissioner also must examine the alignment of each required academic standard and 
17.12 	related benchmark with the knowledge and skills students need for college readiness and 
17.13 	advanced work in the particular subject area.
17.14 	(b) The commissioner in the 2006-2007 school year must revise and align the state's 
17.15 	academic standards and high school graduation requirements in mathematics to require 
17.16 	that students satisfactorily complete the revised mathematics standards, beginning in the 
17.17 	2010-2011 school year. Under the revised standards:
17.18 	(1) students must satisfactorily complete an algebra I credit by the end of eighth 
17.19 	grade; and
17.20 	(2) students scheduled to graduate in the 2014-2015 school year or later must 
17.21 	satisfactorily complete an algebra II credit or its equivalent.
17.22 	The commissioner also must ensure that the statewide mathematics assessments 
17.23 	administered to students in grades 3 through 8 and 11 beginning in the 2010-2011 
17.24 	school year are aligned with the state academic standards in mathematics. The statewide 
17.25 	11th grade mathematics test administered to students under clause (2) beginning in 
17.26 	the 2013-2014 school year must include algebra II test items that are aligned with 
17.27 	corresponding state academic standards in mathematics. The commissioner must 
17.28 	implement a review of the academic standards and related benchmarks in mathematics 
17.29 	beginning in the 2015-2016 school year.
17.30 	(c) The commissioner in the 2007-2008 school year must revise and align the state's 
17.31 	academic standards and high school graduation requirements in the arts to require that 
17.32 	students satisfactorily complete the revised arts standards beginning in the 2010-2011 
17.33 	school year. The commissioner must implement a review of the academic standards and 
17.34 	related benchmarks in arts beginning in the 2016-2017 school year.
17.35 	(d) The commissioner in the 2008-2009 school year must revise and align the state's 
17.36 	academic standards and high school graduation requirements in science to require that 
18.1 	students satisfactorily complete the revised science standards, beginning in the 2011-2012 
18.2 	school year. Under the revised standards, students scheduled to graduate in the 2014-2015 
18.3 	school year or later must satisfactorily complete a chemistry or physics credit. The 
18.4 	commissioner must implement a review of the academic standards and related benchmarks 
18.5 	in science beginning in the 2017-2018 school year.
18.6 	(e) The commissioner in the 2009-2010 school year must revise and align the state's 
18.7 	academic standards and high school graduation requirements in language arts to require 
18.8 	that students satisfactorily complete the revised language arts standards beginning in the 
18.9 	2012-2013 school year. The commissioner must implement a review of the academic 
18.10 	standards and related benchmarks in language arts beginning in the 2018-2019 school year.
18.11 	(f) The commissioner in the 2010-2011 school year must revise and align the state's 
18.12 	academic standards and high school graduation requirements in social studies to require 
18.13 	that students satisfactorily complete the revised social studies standards beginning in the 
18.14 	2013-2014 school year. The commissioner must implement a review of the academic 
18.15 	standards and related benchmarks in social studies beginning in the 2019-2020 school year.
18.16 	(g) School districts and charter schools must revise and align local academic 
18.17 	standards and high school graduation requirements in health, physical education, world 
18.18 	languages, and career and technical education to require students to complete the revised 
18.19 	standards beginning in a school year determined by the school district or charter school. 
18.20 	School districts and charter schools must formally establish a periodic review cycle for 
18.21 	the academic standards and related benchmarks in health, physical education, world 
18.22 	languages, and career and technical education.

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

18.24 	Sec. 6. Minnesota Statutes 2004, section 120B.024, is amended to read:
18.25 	120B.024 GRADUATION REQUIREMENTS; COURSE CREDITS; 
18.26 	STUDENT TRANSFERS.
18.27 	(a) Students beginning 9th grade in the 2004-2005 school year and later must 
18.28 	successfully complete the following high school level course credits for graduation:
18.29 	(1) four credits of language arts;
18.30 	(2) three credits of mathematics, encompassing at least algebra, geometry, statistics, 
18.31 	and probability sufficient to satisfy the academic standard and beginning in the 2010-2011 
18.32 	school year for students scheduled to graduate in the 2014-2015 school year or later, one 
18.33 	algebra II credit or its equivalent;
19.1 	(3) three credits of science, including at least one credit in biology and for the 
19.2 	2011-2012 school year and later, one credit in chemistry or physics;
19.3 	(4) three and one-half credits of social studies, encompassing at least United 
19.4 	States history, geography, government and citizenship, world history, and economics or 
19.5 	three credits of social studies encompassing at least United States history, geography, 
19.6 	government and citizenship, and world history, and one-half credit of economics taught in 
19.7 	a school's social studies, agriculture education, or business department;
19.8 	(5) one credit in the arts; and
19.9 	(6) a minimum of seven elective course credits.
19.10 	(b) Students beginning 9th grade in the 2006-2007 school year and later must 
19.11 	complete the following course credits for graduation in addition to those specified in 
19.12 	paragraph (a), clauses (1) to (5):
19.13 	(1) one-half credit in physical education and one-half credit in health education; and
19.14 	(2) a minimum of six elective course credits instead of the seven elective course 
19.15 	credits specified in paragraph (a), clause (6).
19.16 	(c) A course credit is equivalent to a student successfully completing an academic 
19.17 	year of study or a student mastering the applicable subject matter, as determined by the 
19.18 	local school district.
19.19 	(d) An agriculture science course may fulfill a science credit requirement under 
19.20 	this section.
19.21 	(e) A district, area learning center, and charter school must establish processes by 
19.22 	which to transfer as completed:
19.23 	(1) those course credit requirements that other school sites within the district or 
19.24 	other public schools verify on transcripts as completed; and
19.25 	(2) the work that educational institutions outside the state accept for completing the 
19.26 	equivalent of course credit requirements and verify on transcripts as completed.

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

19.28 	Sec. 7. Minnesota Statutes 2005 Supplement, section 120B.131, subdivision 2, is 
19.29 	amended to read:
19.30 		Subd. 2.Reimbursement for examination fees. The state may reimburse 
19.31 	college-level examination program (CLEP) fees for a Minnesota public or nonpublic
19.32 	high school student who has successfully completed one or more college-level courses 
19.33 	in high school and earned a satisfactory score on one or more CLEP examinations in the 
19.34 	subject matter of each examination in the following subjects: composition and literature, 
19.35 	mathematics and science, social sciences and history, foreign languages, and business and 
20.1 	humanities. The state may reimburse each successful student for up to six examination 
20.2 	fees. The commissioner shall establish application procedures and a process and schedule 
20.3 	for fee reimbursements. The commissioner must give priority to reimburse the CLEP 
20.4 	examination fees of students of low-income families.

20.5 	Sec. 8. [121A.02] SCHOOL SAFETY.
20.6 		Subdivision 1.School safety advisory council. A school safety advisory council 
20.7 	is established under section 15.059.  The advisory council is composed of 12 members 
20.8 	representing school boards, school counselors, school psychologists, law enforcement 
20.9 	agencies, mental health services, substance abuse services, faith communities, school 
20.10 	administrators, students, and school athletic departments and extracurricular organizations. 
20.11 	The members of the council shall be appointed by the commissioner and must be from 
20.12 	geographically diverse regions of the state.
20.13 		Subd. 2.Duties. The advisory council shall advise the commissioner on issues 
20.14 	related to school safety.  The advisory council, in cooperation with the commissioner, 
20.15 	shall make recommendations for the creation of a Center for School Safety for the state 
20.16 	that serves as the central point for the collection and dissemination of information about 
20.17 	successful school safety programs, provide services to schools to assess current school 
20.18 	environments, and provide materials, training, and technical assistance.
20.19 		Subd. 3.Center for School Safety. Consistent with the recommendations of 
20.20 	the advisory council, the commissioner shall establish the Center for School Safety. 
20.21 	The commissioner may contract with the Minnesota Institute of Public Health for the 
20.22 	establishment of the Center for School Safety. The advisory council shall continue to 
20.23 	advise the commissioner and the center on its operations. The Center for School Safety 
20.24 	shall, at a minimum:
20.25 	(1) establish a clearinghouse for information and materials concerning school safety;
20.26 	(2) provide safe school assessments;
20.27 	(3) provide training and technical assistance customized to individual school needs 
20.28 	for school staff, students, and parents;
20.29 	(4) provide services to enhance school climate;
20.30 	(5) coordinate school efforts with the broader community; and
20.31 	(6) evaluate and report on the implementation and effectiveness of the services 
20.32 	provided by the center.

20.33 	Sec. 9. Minnesota Statutes 2004, section 121A.035, is amended to read:
20.34 	121A.035 CRISIS MANAGEMENT POLICY.
21.1 		Subdivision 1.Model policy. By December 1, 1999, The commissioner shall 
21.2 	maintain and make available to school boards and charter schools a model crisis 
21.3 	management policy that includes, among other items, school lock-down and tornado drills, 
21.4 	consistent with subdivision 2, and school fire drills under section 299F.30.
21.5 		Subd. 2.School district and charter school policy. By July 1, 2000, A school 
21.6 	board and a charter school must adopt a district crisis management policy to address 
21.7 	potential violent crisis situations in the district or charter school. The policy must be 
21.8 	developed in consultation cooperatively with administrators, teachers, employees, 
21.9 	students, parents, community members, law enforcement agencies, other emergency 
21.10 	management officials, county attorney offices, social service agencies, emergency medical 
21.11 	responders, and any other appropriate individuals or organizations. The policy must 
21.12 	include at least five school lock-down drills, five school fire drills consistent with section 
21.13 	299F.30, and one tornado drill.

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

21.16 	Sec. 10. [121A.231] COMPREHENSIVE FAMILY LIFE AND SEXUALITY 
21.17 	EDUCATION PROGRAMS.
21.18 		Subdivision 1.Definitions. (a) "Comprehensive family life and sexuality education" 
21.19 	means education in grades 7 through 12 that:
21.20 	(1) respects community values and encourages family communication;
21.21 	(2) develops skills in communication, decision making, and conflict resolution;
21.22 	(3) contributes to healthy relationships;
21.23 	(4) provides human development and sexuality education that is age appropriate 
21.24 	and medically accurate;
21.25 	(5) includes an abstinence-first approach to delaying initiation of sexual activity that 
21.26 	emphasizes abstinence while also including education about the use of protection and 
21.27 	contraception; and
21.28 	(6) promotes individual responsibility.
21.29 	(b) "Age appropriate" refers to topics, messages, and teaching methods suitable to 
21.30 	particular ages or age groups of children and adolescents, based on developing cognitive, 
21.31 	emotional, and behavioral capacity typical for the age or age group.
21.32 	(c) "Medically accurate" means verified or supported by research conducted in 
21.33 	compliance with scientific methods and published in peer-reviewed journals, where 
21.34 	appropriate, and recognized as accurate and objective by professional organizations 
21.35 	and agencies in the relevant field, such as the federal Centers for Disease Control 
22.1 	and Prevention, the American Public Health Association, the American Academy of 
22.2 	Pediatrics, or the American College of Obstetricians and Gynecologists.
22.3 		Subd. 2.Curriculum requirements. (a) A school district may offer and may 
22.4 	independently establish policies, procedures, curriculum, and services for providing 
22.5 	comprehensive family life and sexuality education that is age appropriate and medically 
22.6 	accurate for kindergarten through grade 6.
22.7 	(b) A school district must offer and may independently establish policies, procedures, 
22.8 	curriculum, and services for providing comprehensive family life and sexuality education 
22.9 	that is age appropriate and medically accurate for grades 7 through 12.
22.10 		Subd. 3.Notice and parental options. (a) It is the legislature's intent to encourage 
22.11 	pupils to communicate with their parents or guardians about human sexuality and to respect 
22.12 	rights of parents or guardians to supervise their children's education on these subjects.
22.13 	(b) Parents or guardians may excuse their children from all or part of a 
22.14 	comprehensive family life and sexuality education program.
22.15 	(c) A school district must establish procedures for providing parents or guardians 
22.16 	reasonable notice with the following information:
22.17 	(1) if the district is offering a comprehensive family life and sexuality education 
22.18 	program to the parents' or guardians' child during the course of the year;
22.19 	(2) how the parents or guardians may inspect the written and audio/visual 
22.20 	educational materials used in the program and the process for inspection;
22.21 	(3) if the program is presented by school district personnel or outside consultants, 
22.22 	and if outside consultants are used, who they may be; and 
22.23 	(4) parents' or guardians' right to choose not to have their child participate in the 
22.24 	program and the procedure for exercising that right.
22.25 	(d) A school district must establish procedures for reasonably restricting the 
22.26 	availability of written and audio/visual educational materials from public view of students 
22.27 	who have been excused from all or part of a comprehensive family life and sexuality 
22.28 	education program at the request of a parent or guardian.
22.29 		Subd. 4.Assistance to school districts. (a) The Department of Education may 
22.30 	offer services to school districts to help them implement effective comprehensive family 
22.31 	life and sexuality education programs.  In providing these services, the department may 
22.32 	contract with a school district, or a school district in partnership with a local health agency 
22.33 	or a nonprofit organization, to establish up to eight regional training sites, taking into 
22.34 	account geographical balance, to provide:
23.1 	(1) training for teachers, parents, and community members in the development of 
23.2 	comprehensive family life and sexuality education curriculum or services and in planning 
23.3 	for monitoring and evaluation activities;
23.4 	(2) resource staff persons to provide expert training, curriculum development and 
23.5 	implementation, and evaluation services;
23.6 	(3) technical assistance to promote and coordinate community, parent, and youth 
23.7 	forums in communities identified as having high needs for comprehensive family life 
23.8 	and sexuality education;
23.9 	(4) technical assistance for issue management and policy development training for 
23.10 	school boards, superintendents, principals, and administrators across the state; and 
23.11 	(5) funding for grants to school-based comprehensive family life and sexuality 
23.12 	education programs to promote innovation and to recognize outstanding performance and 
23.13 	promote replication of demonstrably effective strategies.
23.14 	(b) Technical assistance provided by the department to school districts or regional 
23.15 	training sites may:
23.16 	(1) promote instruction and use of materials that are age appropriate;
23.17 	(2) provide information that is medically accurate and objective;
23.18 	(3) provide instruction and promote use of materials that are respectful of marriage 
23.19 	and commitments in relationships;
23.20 	(4) provide instruction and promote use of materials that are appropriate for use 
23.21 	with pupils and family experiences based on race, gender, sexual orientation, and ethnic 
23.22 	and cultural background, and appropriately accommodate alternative learning based on 
23.23 	language or disability;
23.24 	(5) provide instruction and promote use of materials that encourage pupils to 
23.25 	communicate with their parents or guardians about human sexuality;
23.26 	(6) provide instruction and promote use of age-appropriate materials that teach 
23.27 	abstinence from sexual intercourse as the only certain way to prevent unintended 
23.28 	pregnancy or sexually transmitted infections, including HIV, and provide information 
23.29 	about the role and value of abstinence while also providing medically accurate information 
23.30 	on other methods of preventing and reducing risk for unintended pregnancy and sexually 
23.31 	transmitted infections;
23.32 	(7) provide instruction and promote use of age-appropriate materials that are 
23.33 	medically accurate in explaining transmission modes, risks, symptoms, and treatments for 
23.34 	sexually transmitted infections, including HIV;
24.1 	(8) provide instruction and promote use of age-appropriate materials that address 
24.2 	varied societal views on sexuality, sexual behaviors, pregnancy, and sexually transmitted 
24.3 	infections, including HIV, in an age-appropriate manner;
24.4 	(9) provide instruction and promote use of age-appropriate materials that provide 
24.5 	information about the effectiveness and safety of all FDA-approved methods for 
24.6 	preventing and reducing risk for unintended pregnancy and sexually transmitted 
24.7 	infections, including HIV;
24.8 	(10) provide instruction and promote use of age-appropriate materials that provide 
24.9 	instruction in skills for making and implementing responsible decisions about sexuality;
24.10 	(11) provide instruction and promote use of age-appropriate materials that provide 
24.11 	instruction in skills for making and implementing responsible decisions about finding and 
24.12 	using health services; and 
24.13 	(12) provide instruction and promote use of age-appropriate materials that do not 
24.14 	teach or promote religious doctrine or reflect or promote bias against any person on the 
24.15 	basis of any category protected under the Minnesota Human Rights Act, chapter 363A.

24.16 	Sec. 11. Minnesota Statutes 2004, section 122A.18, subdivision 2, is amended to read:
24.17 		Subd. 2.Teacher and support personnel qualifications. (a) The Board of 
24.18 	Teaching must issue licenses under its jurisdiction to persons the board finds to be 
24.19 	qualified and competent for their respective positions.
24.20 	(b) The board must require a person to successfully complete an examination of 
24.21 	skills in reading, writing, and mathematics before being granted an initial teaching license 
24.22 	to provide direct instruction to pupils in prekindergarten, elementary, secondary, or special 
24.23 	education programs. The board must require colleges and universities offering a board 
24.24 	approved teacher preparation program to provide remedial assistance that includes a 
24.25 	formal diagnostic component to persons enrolled in their institution who did not achieve a 
24.26 	qualifying score on the skills examination, including those for whom English is a second 
24.27 	language. The colleges and universities must provide assistance in the specific academic 
24.28 	areas of deficiency in which the person did not achieve a qualifying score. School 
24.29 	districts must provide similar, appropriate, and timely remedial assistance that includes a 
24.30 	formal diagnostic component and mentoring to those persons employed by the district 
24.31 	who completed their teacher education program outside the state of Minnesota, received 
24.32 	a one-year license to teach in Minnesota and did not achieve a qualifying score on the 
24.33 	skills examination, including those persons for whom English is a second language. The 
24.34 	Board of Teaching shall report annually to the education committees of the legislature 
24.35 	on the total number of teacher candidates during the most recent school year taking the 
25.1 	skills examination, the number who achieve a qualifying score on the examination, the 
25.2 	number who do not achieve a qualifying score on the examination, the distribution of all 
25.3 	candidates' scores, the number of candidates who have taken the examination at least once 
25.4 	before, and the number of candidates who have taken the examination at least once before 
25.5 	and achieve a qualifying score.
25.6 	(c) A person who has completed an approved teacher preparation program and 
25.7 	obtained a one-year license to teach, but has not successfully completed the skills 
25.8 	examination, may renew the one-year license for two additional one-year periods. Each 
25.9 	renewal of the one-year license is contingent upon the licensee:
25.10 	(1) providing evidence of participating in an approved remedial assistance program 
25.11 	provided by a school district or postsecondary institution that includes a formal diagnostic 
25.12 	component in the specific areas in which the licensee did not obtain qualifying scores; and
25.13 	(2) attempting to successfully complete the skills examination during the period 
25.14 	of each one-year license.
25.15 	(d) The Board of Teaching must grant continuing licenses only to those persons who 
25.16 	have met board criteria for granting a continuing license, which includes successfully 
25.17 	completing the skills examination in reading, writing, and mathematics.
25.18 	(e) All colleges and universities approved by the board of teaching to prepare persons 
25.19 	for teacher licensure must include in their teacher preparation programs a common core 
25.20 	of teaching knowledge and skills to be acquired by all persons recommended for teacher 
25.21 	licensure. This common core shall meet the standards developed by the interstate new 
25.22 	teacher assessment and support consortium in its 1992 "model standards for beginning 
25.23 	teacher licensing and development.," and must include technology and information 
25.24 	literacy standards that are consistent with recommendations from media specialists and 
25.25 	the department's Educator Licensing and Teacher Quality Division. The board must 
25.26 	develop and implement a system for reviewing on a seven-year cycle all standards of 
25.27 	effective practice for teachers beginning in the 2007-2008 school year. Amendments to 
25.28 	standards adopted under this paragraph are covered by chapter 14. The board of teaching 
25.29 	shall report annually to the education committees of the legislature on the performance 
25.30 	of teacher candidates on common core assessments of knowledge and skills under this 
25.31 	paragraph during the most recent school year.

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

25.33 	Sec. 12. Minnesota Statutes 2005 Supplement, section 122A.414, subdivision 2b, 
25.34 	is amended to read:
26.1 		Subd. 2b.Approval process. (a) Consistent with the requirements of this section 
26.2 	and sections 122A.413 and 122A.415, the department must prepare and transmit to 
26.3 	interested school districts, intermediate school districts, school sites, and charter schools 
26.4 	a standard form for applying to participate in the alternative teacher professional pay 
26.5 	system. An interested school district, intermediate school district, school site, or charter 
26.6 	school must submit to the commissioner a completed application executed by the district 
26.7 	superintendent and the exclusive bargaining representative of the teachers if the applicant 
26.8 	is a school district, intermediate school district, or school site, or executed by the charter 
26.9 	school board of directors if the applicant is a charter school. The application must include 
26.10 	the proposed alternative teacher professional pay system agreement under subdivision 
26.11 	2. The department must convene a review committee that at least includes teachers and 
26.12 	administrators within 30 days of receiving a completed application to recommend to 
26.13 	the commissioner whether to approve or disapprove the application. The commissioner 
26.14 	must approve applications on a first-come, first-served basis. The applicant's alternative 
26.15 	teacher professional pay system agreement must be legally binding on the applicant 
26.16 	and the collective bargaining representative before the applicant receives alternative 
26.17 	compensation revenue. The commissioner must approve or disapprove an application 
26.18 	based solely on the explicit requirements under subdivisions 2 and 2a and may not impose 
26.19 	any other conditions for approval.
26.20 	(b) If the commissioner disapproves an application, the commissioner must give the 
26.21 	applicant timely notice of the specific reasons in detail for disapproving the application. 
26.22 	The applicant may revise and resubmit its application and related documents to the 
26.23 	commissioner within 30 days of receiving notice of the commissioner's disapproval and 
26.24 	the commissioner must approve or disapprove the revised application, consistent with this 
26.25 	subdivision. Applications that are revised and then approved are considered submitted on 
26.26 	the date the applicant initially submitted the application.

26.27 	Sec. 13. Minnesota Statutes 2005 Supplement, section 122A.414, subdivision 3, 
26.28 	is amended to read:
26.29 		Subd. 3.Report; continued funding. (a) Participating districts, intermediate 
26.30 	school districts, school sites, and charter schools must report on the implementation and 
26.31 	effectiveness of the alternative teacher professional pay system, particularly addressing 
26.32 	each requirement under subdivision 2 and make annual recommendations by June 15 to 
26.33 	their school boards. The school board or board of directors shall transmit a copy of the 
26.34 	report with a summary of the findings and recommendations of the district, intermediate 
26.35 	school district, school site, or charter school to the commissioner.
27.1 	(b) If the commissioner determines that a school district, intermediate school district, 
27.2 	school site, or charter school that receives alternative teacher compensation revenue is not 
27.3 	complying with the requirements of this section, the commissioner may withhold funding 
27.4 	from that participant. Before making the determination, the commissioner must notify the 
27.5 	participant of any deficiencies and provide the participant an opportunity to comply.
27.6 	(c) The commissioner's review and evaluation of an alternative teacher professional 
27.7 	pay system must be judged relative to the participant's approved plan and may not impose 
27.8 	any criteria other than are contained in the plan or the explicit requirements of this section.

27.9 	Sec. 14. Minnesota Statutes 2004, section 123B.77, subdivision 3, is amended to read:
27.10 		Subd. 3.Statement for comparison and correction. (a) By November 30 of the 
27.11 	calendar year of the submission of the unaudited financial data, the district must provide to 
27.12 	the commissioner audited financial data for the preceding fiscal year. The audit must be 
27.13 	conducted in compliance with generally accepted governmental auditing standards, the 
27.14 	federal Single Audit Act, and the Minnesota legal compliance guide issued by the Office 
27.15 	of the State Auditor. An audited financial statement prepared in a form which will allow 
27.16 	comparison with and correction of material differences in the unaudited financial data 
27.17 	shall be submitted to the commissioner and the state auditor by December 31. The audited 
27.18 	financial statement must also provide a statement of assurance pertaining to uniform 
27.19 	financial accounting and reporting standards compliance and a copy of the management 
27.20 	letter submitted to the district by the school district's auditor.
27.21 	(b) By January 15 of the calendar year following the submission of the unaudited 
27.22 	financial data, the commissioner shall convert the audited financial data required by this 
27.23 	subdivision into the consolidated financial statement format required under subdivision 1a 
27.24 	and publish the information on the department's Web site.

27.25 	EFFECTIVE DATE. This section is effective for financial statements prepared in 
27.26 	2006 and later.

27.27 	Sec. 15. Minnesota Statutes 2004, section 123B.90, subdivision 2, is amended to read:
27.28 		Subd. 2.Student training. (a) Each district must provide public school pupils 
27.29 	enrolled in kindergarten through grade 10 with age-appropriate school bus safety training, 
27.30 	as described in this section, of the following concepts:
27.31 	(1) transportation by school bus is a privilege and not a right;
27.32 	(2) district policies for student conduct and school bus safety;
27.33 	(3) appropriate conduct while on the school bus;
27.34 	(4) the danger zones surrounding a school bus;
28.1 	(5) procedures for safely boarding and leaving a school bus;
28.2 	(6) procedures for safe street or road crossing; and
28.3 	(7) school bus evacuation.
28.4 	(b) Each nonpublic school located within the district must provide all nonpublic 
28.5 	school pupils enrolled in kindergarten through grade 10 who are transported by school 
28.6 	bus at public expense and attend school within the district's boundaries with training as 
28.7 	required in paragraph (a).
28.8 	(c) Students enrolled in kindergarten through grade 6 who are transported by school 
28.9 	bus and are enrolled during the first or second week of school must receive the school bus 
28.10 	safety training competencies by the end of the third week of school. Students enrolled in 
28.11 	grades 7 through 10 who are transported by school bus and are enrolled during the first or 
28.12 	second week of school and have not previously received school bus safety training must 
28.13 	receive the training or receive bus safety instructional materials by the end of the sixth 
28.14 	week of school. Students taking driver's training instructional classes and other students in 
28.15 	grades 9 and grade 9 or 10 must receive training in the laws and proper procedures when 
28.16 	operating a motor vehicle in the vicinity of a school bus. Students enrolled in kindergarten 
28.17 	through grade 10 who enroll in a school after the second week of school and are 
28.18 	transported by school bus and have not received training in their previous school district 
28.19 	shall undergo school bus safety training or receive bus safety instructional materials 
28.20 	within four weeks of the first day of attendance. Upon request of the superintendent 
28.21 	of schools, the school transportation safety director in each district must certify to the 
28.22 	superintendent of schools annually that all students transported by school bus within 
28.23 	the district have received the school bus safety training according to this section. Upon 
28.24 	request of the superintendent of the school district where the nonpublic school is located, 
28.25 	the principal or other chief administrator of each nonpublic school must certify annually to 
28.26 	the school transportation safety director of the district in which the school is located that 
28.27 	the school's students transported by school bus at public expense have received training 
28.28 	according to this section.
28.29 	(d) A district and a nonpublic school with students transported by school bus at 
28.30 	public expense may provide kindergarten pupils with bus safety training before the first 
28.31 	day of school.
28.32 	(e) A district and a nonpublic school with students transported by school bus at 
28.33 	public expense may also provide student safety education for bicycling and pedestrian 
28.34 	safety, for students enrolled in kindergarten through grade 5.
29.1 	(f) A district and a nonpublic school with students transported by school bus at 
29.2 	public expense must make reasonable accommodations for the school bus safety training 
29.3 	of pupils known to speak English as a second language and pupils with disabilities.
29.4 	(g) The district and a nonpublic school with students transported by school bus at 
29.5 	public expense must provide students enrolled in kindergarten through grade 3 school bus 
29.6 	safety training twice during the school year.
29.7 	(h) A district and a nonpublic school with students transported by school bus at public 
29.8 	expense must conduct a school bus evacuation drill at least once during the school year.

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

29.10 	Sec. 16. Minnesota Statutes 2004, section 123B.91, is amended by adding a 
29.11 	subdivision to read:
29.12 		Subd. 1a.Compliance by nonpublic and charter school students. A nonpublic or 
29.13 	charter school student transported by a public school district shall comply with student bus 
29.14 	conduct and student bus discipline policies of the transporting public school district.

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

29.16 	Sec. 17. Minnesota Statutes 2005 Supplement, section 123B.92, subdivision 1, is 
29.17 	amended to read:
29.18 		Subdivision 1.Definitions. For purposes of this section and section 125A.76, the 
29.19 	terms defined in this subdivision have the meanings given to them.
29.20 	(a) "Actual expenditure per pupil transported in the regular and excess transportation 
29.21 	categories" means the quotient obtained by dividing:
29.22 	(1) the sum of:
29.23 	(i) all expenditures for transportation in the regular category, as defined in paragraph 
29.24 	(b), clause (1), and the excess category, as defined in paragraph (b), clause (2), plus
29.25 	(ii) an amount equal to one year's depreciation on the district's school bus fleet 
29.26 	and mobile units computed on a straight line basis at the rate of 15 percent per year for 
29.27 	districts operating a program under section 124D.128 for grades 1 to 12 for all students in 
29.28 	the district and 12-1/2 percent per year for other districts of the cost of the fleet, plus
29.29 	(iii) an amount equal to one year's depreciation on the district's type three school 
29.30 	buses, as defined in section 169.01, subdivision 6, clause (5), which must be used a 
29.31 	majority of the time for pupil transportation purposes, computed on a straight line basis at 
29.32 	the rate of 20 percent per year of the cost of the type three school buses by:
30.1 	(2) the number of pupils eligible for transportation in the regular category, as defined 
30.2 	in paragraph (b), clause (1), and the excess category, as defined in paragraph (b), clause (2).
30.3 	(b) "Transportation category" means a category of transportation service provided to 
30.4 	pupils as follows:
30.5 	(1) Regular transportation is:
30.6 	(i) transportation to and from school during the regular school year for resident 
30.7 	elementary pupils residing one mile or more from the public or nonpublic school they 
30.8 	attend, and resident secondary pupils residing two miles or more from the public 
30.9 	or nonpublic school they attend, excluding desegregation transportation and noon 
30.10 	kindergarten transportation; but with respect to transportation of pupils to and from 
30.11 	nonpublic schools, only to the extent permitted by sections 123B.84 to 123B.87;
30.12 	(ii) transportation of resident pupils to and from language immersion programs;
30.13 	(iii) transportation of a pupil who is a custodial parent and that pupil's child between 
30.14 	the pupil's home and the child care provider and between the provider and the school, if 
30.15 	the home and provider are within the attendance area of the school;
30.16 	(iv) transportation to and from or board and lodging in another district, of resident 
30.17 	pupils of a district without a secondary school; and
30.18 	(v) transportation to and from school during the regular school year required under 
30.19 	subdivision 3 for nonresident elementary pupils when the distance from the attendance 
30.20 	area border to the public school is one mile or more, and for nonresident secondary pupils 
30.21 	when the distance from the attendance area border to the public school is two miles or 
30.22 	more, excluding desegregation transportation and noon kindergarten transportation.
30.23 	For the purposes of this paragraph, a district may designate a licensed day care 
30.24 	facility, school day care facility, respite care facility, the residence of a relative, or the 
30.25 	residence of a person chosen by the pupil's parent or guardian as the home of a pupil for 
30.26 	part or all of the day, if requested by the pupil's parent or guardian, and if that facility or 
30.27 	residence is within the attendance area of the school the pupil attends.
30.28 	(2) Excess transportation is:
30.29 	(i) transportation to and from school during the regular school year for resident 
30.30 	secondary pupils residing at least one mile but less than two miles from the public or 
30.31 	nonpublic school they attend, and transportation to and from school for resident pupils 
30.32 	residing less than one mile from school who are transported because of extraordinary 
30.33 	traffic, drug, or crime hazards; and
30.34 	(ii) transportation to and from school during the regular school year required under 
30.35 	subdivision 3 for nonresident secondary pupils when the distance from the attendance area 
30.36 	border to the school is at least one mile but less than two miles from the public school 
31.1 	they attend, and for nonresident pupils when the distance from the attendance area border 
31.2 	to the school is less than one mile from the school and who are transported because of 
31.3 	extraordinary traffic, drug, or crime hazards.
31.4 	(3) Desegregation transportation is transportation within and outside of the district 
31.5 	during the regular school year of pupils to and from schools located outside their normal 
31.6 	attendance areas under a plan for desegregation mandated by the commissioner or under 
31.7 	court order.
31.8 	(4) "Transportation services for pupils with disabilities" is:
31.9 	(i) transportation of pupils with disabilities who cannot be transported on a regular 
31.10 	school bus between home or a respite care facility and school;
31.11 	(ii) necessary transportation of pupils with disabilities from home or from school to 
31.12 	other buildings, including centers such as developmental achievement centers, hospitals, 
31.13 	and treatment centers where special instruction or services required by sections 125A.03
31.14 	to 125A.24, 125A.26 to 125A.48, and 125A.65 are provided, within or outside the district 
31.15 	where services are provided;
31.16 	(iii) necessary transportation for resident pupils with disabilities required by sections 
31.17 	125A.12, and 125A.26 to 125A.48;
31.18 	(iv) board and lodging for pupils with disabilities in a district maintaining special 
31.19 	classes;
31.20 	(v) transportation from one educational facility to another within the district for 
31.21 	resident pupils enrolled on a shared-time basis in educational programs, and necessary 
31.22 	transportation required by sections 125A.18, and 125A.26 to 125A.48, for resident pupils 
31.23 	with disabilities who are provided special instruction and services on a shared-time basis 
31.24 	or if resident pupils are not transported, the costs of necessary travel between public 
31.25 	and private schools or neutral instructional sites by essential personnel employed by the 
31.26 	district's program for children with a disability;
31.27 	(vi) transportation for resident pupils with disabilities to and from board and lodging 
31.28 	facilities when the pupil is boarded and lodged for educational purposes; and
31.29 	(vii) services described in clauses (i) to (vi), when provided for pupils with 
31.30 	disabilities in conjunction with a summer instructional program that relates to the pupil's 
31.31 	individual education plan or in conjunction with a learning year program established 
31.32 	under section 124D.128.
31.33 	For purposes of computing special education base revenue under section 125A.76, 
31.34 	subdivision 2, the cost of providing transportation for children with disabilities includes 
31.35 	(A) the additional cost of transporting a homeless student from a temporary nonshelter 
31.36 	home in another district to the school of origin, or a formerly homeless student from a 
32.1 	permanent home in another district to the school of origin but only through the end of the 
32.2 	academic year; and (B) depreciation on district-owned school buses purchased after July 1, 
32.3 	2005, and used primarily for transportation of pupils with disabilities, calculated according 
32.4 	to paragraph (a), clauses (ii) and (iii). Depreciation costs included in the disabled 
32.5 	transportation category must be excluded in calculating the actual expenditure per pupil 
32.6 	transported in the regular and excess transportation categories according to paragraph (a).
32.7 	(5) "Nonpublic nonregular transportation" is:
32.8 	(i) transportation from one educational facility to another within the district for 
32.9 	resident pupils enrolled on a shared-time basis in educational programs, excluding 
32.10 	transportation for nonpublic pupils with disabilities under clause (4);
32.11 	(ii) transportation within district boundaries between a nonpublic school and a 
32.12 	public school or a neutral site for nonpublic school pupils who are provided pupil support 
32.13 	services pursuant to section 123B.44; and
32.14 	(iii) late transportation home from school or between schools within a district for 
32.15 	nonpublic school pupils involved in after-school activities.
32.16 	(c) "Mobile unit" means a vehicle or trailer designed to provide facilities for 
32.17 	educational programs and services, including diagnostic testing, guidance and counseling 
32.18 	services, and health services. A mobile unit located off nonpublic school premises is a 
32.19 	neutral site as defined in section 123B.41, subdivision 13.

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

32.21 	Sec. 18. Minnesota Statutes 2005 Supplement, section 123B.92, subdivision 5, is 
32.22 	amended to read:
32.23 		Subd. 5.District reports. (a) Each district must report data to the department as 
32.24 	required by the department to account for transportation expenditures.
32.25 	(b) Salaries and fringe benefits of district employees whose primary duties are 
32.26 	other than transportation, including central office administrators and staff, building 
32.27 	administrators and staff, teachers, social workers, school nurses, and instructional aides, 
32.28 	must not be included in a district's transportation expenditures, except that a district may 
32.29 	include salaries and benefits according to paragraph (c) for (1) an employee designated 
32.30 	as the district transportation director, (2) an employee providing direct support to the 
32.31 	transportation director, or (3) an employee providing direct transportation services such as 
32.32 	a bus driver or bus aide.
32.33 	(c) Salaries and fringe benefits of other the district employees listed in paragraph 
32.34 	(b), clauses (1), (2), and (3), who work part time in transportation and part time in other 
32.35 	areas must not be included in a district's transportation expenditures unless the district 
33.1 	maintains documentation of the employee's time spent on pupil transportation matters in 
33.2 	the form and manner prescribed by the department.
33.3 	(d) Pupil transportation expenditures, excluding expenditures for capital outlay, 
33.4 	leased buses, student board and lodging, crossing guards, and aides on buses, must 
33.5 	be allocated among transportation categories based on cost-per-mile, cost-per-student, 
33.6 	cost-per-hour, or cost-per-route, regardless of whether the transportation services are 
33.7 	provided on district-owned or contractor-owned school buses. Expenditures for school 
33.8 	bus driver salaries and fringe benefits may either be directly charged to the appropriate 
33.9 	transportation category or may be allocated among transportation categories based 
33.10 	on cost-per-mile, cost-per-student, cost-per-hour, or cost-per-route. Expenditures 
33.11 	by private contractors or individuals who provide transportation exclusively in one 
33.12 	transportation category must be charged directly to the appropriate transportation category. 
33.13 	Transportation services provided by contractor-owned school bus companies incorporated 
33.14 	under different names but owned by the same individual or group of individuals must be 
33.15 	treated as the same company for cost allocation purposes.

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

33.17 	Sec. 19. Minnesota Statutes 2004, section 124D.095, subdivision 3, is amended to read:
33.18 		Subd. 3.Authorization; notice; limitations on enrollment. (a) A student may 
33.19 	apply to an on-line learning provider to enroll in on-line learning. A student age 17 or 
33.20 	younger must have the written consent of a parent or guardian to apply. No school district 
33.21 	or charter school may prohibit a student from applying to enroll in on-line learning. An 
33.22 	on-line learning provider that accepts a student under this section must, within ten days, 
33.23 	notify the student and the enrolling district if the enrolling district is not the on-line 
33.24 	learning provider. The notice must report the student's course or program and hours 
33.25 	of instruction.
33.26 	(b) An on-line learning student must notify the enrolling district at least 30 45
33.27 	days before taking an on-line learning course or program if the enrolling district is not 
33.28 	providing the on-line learning. An on-line learning provider must notify the commissioner 
33.29 	that it is delivering on-line learning and report the number of on-line learning students it is 
33.30 	accepting and the on-line learning courses and programs it is delivering.
33.31 	(c) An on-line learning provider may limit enrollment if the provider's school board 
33.32 	or board of directors adopts by resolution specific standards for accepting and rejecting 
33.33 	students' applications.
34.1 	(d) An enrolling district may reduce an on-line learning student's regular classroom 
34.2 	instructional membership in proportion to the student's membership in on-line learning 
34.3 	courses.

34.4 	Sec. 20. Minnesota Statutes 2005 Supplement, section 124D.095, subdivision 4, 
34.5 	is amended to read:
34.6 		Subd. 4.Online learning parameters. (a) An online learning student must receive 
34.7 	academic credit for completing the requirements of an online learning course or program. 
34.8 	Secondary credits granted to an online learning student must be counted toward the 
34.9 	graduation and credit requirements of the enrolling district. The enrolling district must 
34.10 	apply the same graduation requirements to all students, including online learning students, 
34.11 	and must continue to provide nonacademic services to online learning students. If a 
34.12 	student completes an online learning course or program that meets or exceeds a graduation 
34.13 	standard or grade progression requirement at the enrolling district, that standard or 
34.14 	requirement is met. The enrolling district must use the same criteria for accepting online 
34.15 	learning credits or courses as it does for accepting credits or courses for transfer students 
34.16 	under section 124D.03, subdivision 9. The enrolling district may reduce the teacher 
34.17 	contact time of an online learning student in proportion to the number of online learning 
34.18 	courses the student takes from an online learning provider that is not the enrolling district.
34.19 	(b) An online learning student may:
34.20 	(1) enroll during a single school year in a maximum of 12 semester-long courses or 
34.21 	their equivalent delivered by an online learning provider or the enrolling district;
34.22 	(2) complete course work at a grade level that is different from the student's current 
34.23 	grade level; and
34.24 	(3) enroll in additional courses with the online learning provider under a separate 
34.25 	agreement that includes terms for payment of any tuition or course fees.
34.26 	(c) A student with a disability may enroll in an online learning course or program 
34.27 	if the student's IEP team determines that online learning is appropriate education for 
34.28 	the student.
34.29 	(d)(c) An online learning student has the same access to the computer hardware 
34.30 	and education software available in a school as all other students in the enrolling district. 
34.31 	An online learning provider must assist an online learning student whose family qualifies 
34.32 	for the education tax credit under section 290.0674 to acquire computer hardware and 
34.33 	educational software for online learning purposes.
34.34 	(e)(d) An enrolling district may offer online learning to its enrolled students. 
34.35 	Such online learning does not generate online learning funds under this section. An 
35.1 	enrolling district that offers online learning only to its enrolled students is not subject 
35.2 	to the reporting requirements or review criteria under subdivision 7. A teacher with a 
35.3 	Minnesota license must assemble and deliver instruction to enrolled students receiving 
35.4 	online learning from an enrolling district. The delivery of instruction occurs when the 
35.5 	student interacts with the computer or the teacher and receives ongoing assistance and 
35.6 	assessment of learning. The instruction may include curriculum developed by persons 
35.7 	other than a teacher with a Minnesota license.
35.8 	(f)(e) An online learning provider that is not the enrolling district is subject to 
35.9 	the reporting requirements and review criteria under subdivision 7. A teacher with a 
35.10 	Minnesota license must assemble and deliver instruction to online learning students. The 
35.11 	delivery of instruction occurs when the student interacts with the computer or the teacher 
35.12 	and receives ongoing assistance and assessment of learning. The instruction may include 
35.13 	curriculum developed by persons other than a teacher with a Minnesota license. Unless 
35.14 	the commissioner grants a waiver, a teacher providing online learning instruction must not 
35.15 	instruct more than 40 students in any one online learning course or program.

35.16 	Sec. 21. Minnesota Statutes 2004, section 124D.096, is amended to read:
35.17 	124D.096 ON-LINE LEARNING AID.
35.18 	(a) The on-line learning aid for an on-line learning provider equals the product 
35.19 	of the adjusted on-line learning average daily membership for students under section  
35.20 	124D.095, subdivision 8, paragraph (d), times the student grade level weighting under 
35.21 	section  126C.05, subdivision 1, times the formula allowance. 
35.22 	(b) Notwithstanding section  127A.45, the department must pay each on-line learning 
35.23 	provider 80 percent of the current year aid payment percentage multiplied by the amount 
35.24 	in paragraph (a) within 45 days of receiving final enrollment and course completion 
35.25 	information each quarter or semester. A final payment equal to 20 percent of the amount in 
35.26 	paragraph (a) The final adjustment payment must be the amount of the actual entitlement, 
35.27 	after adjustment for actual data, minus the payments made during the fiscal year of the 
35.28 	entitlement. This payment must be made on September 30 of the next fiscal year. 

35.29 	Sec. 22. Minnesota Statutes 2004, section 124D.10, subdivision 16, is amended to read:
35.30 		Subd. 16.Transportation. (a) By July 1 of eachyear, a charter schoolA charter 
35.31 	school after its first fiscal year of operation by March 1 of each fiscal year and a charter 
35.32 	school by July 1 of its first fiscal year of operation must notify the district in which the 
35.33 	school is located and the Department of Education if it will provide transportation for 
36.1 	pupils enrolled in the school its own transportation or use the transportation services of the 
36.2 	district in which it is located for the fiscal year.
36.3 	(b) If a charter school elects to provide transportation for pupils, the transportation 
36.4 	must be provided by the charter school within the district in which the charter school is 
36.5 	located. The state must pay transportation aid to the charter school according to section  
36.6 	124D.11, subdivision 2. 
36.7 	For pupils who reside outside the district in which the charter school is located, the 
36.8 	charter school is not required to provide or pay for transportation between the pupil's 
36.9 	residence and the border of the district in which the charter school is located. A parent 
36.10 	may be reimbursed by the charter school for costs of transportation from the pupil's 
36.11 	residence to the border of the district in which the charter school is located if the pupil is 
36.12 	from a family whose income is at or below the poverty level, as determined by the federal 
36.13 	government. The reimbursement may not exceed the pupil's actual cost of transportation 
36.14 	or 15 cents per mile traveled, whichever is less. Reimbursement may not be paid for 
36.15 	more than 250 miles per week.
36.16 	At the time a pupil enrolls in a charter school, the charter school must provide the 
36.17 	parent or guardian with information regarding the transportation.
36.18 	(c) If a charter school does not elect to provide transportation, transportation for 
36.19 	pupils enrolled at the school must be provided by the district in which the school is 
36.20 	located, according to sections  123B.88, subdivision 6, and  124D.03, subdivision 8, for a 
36.21 	pupil residing in the same district in which the charter school is located. Transportation 
36.22 	may be provided by the district in which the school is located, according to sections  
36.23 	123B.88, subdivision 6, and  124D.03, subdivision 8, for a pupil residing in a different 
36.24 	district. If the district provides the transportation, the scheduling of routes, manner and 
36.25 	method of transportation, control and discipline of the pupils, and any other matter relating 
36.26 	to the transportation of pupils under this paragraph shall be within the sole discretion, 
36.27 	control, and management of the district. 

36.28 	Sec. 23. Minnesota Statutes 2004, section 124D.11, subdivision 9, is amended to read:
36.29 		Subd. 9.Payment of aids to charter schools. (a) Notwithstanding section  127A.45, 
36.30 	subdivision 3, aid payments for the current fiscal year to a charter school not in its first 
36.31 	year of operation shall be of an equal amount on each of the 23 payment dates. A charter 
36.32 	school in its first year of operation shall receive, on its first payment date, ten percent of its 
36.33 	cumulative amount guaranteed for the year and 22 payments of an equal amount thereafter 
36.34 	the sum of which shall be 90 percent of equal the current year aid payment percentage 
36.35 	multiplied by the cumulative amount guaranteed. 
37.1 	(b) Notwithstanding paragraph (a), for a charter school ceasing operation prior to the 
37.2 	end of a school year, 80 percent of the current year aid payment percentage multiplied by 
37.3 	 the amount due for the school year may be paid to the school after audit of prior fiscal year 
37.4 	and current fiscal year pupil counts. For a charter school ceasing operations prior to, or at 
37.5 	the end of, a school year, notwithstanding section 127A.45, subdivision 3, preliminary 
37.6 	final payments may be made after audit of pupil counts, monitoring of special education 
37.7 	expenditures, and documentation of lease expenditures for the final year of operation. 
37.8 	Final payment may be made upon receipt of audited financial statements under section 
37.9 	123B.77, subdivision 3.
37.10 	(c) Notwithstanding section  127A.45, subdivision 3, and paragraph (a), 80 percent 
37.11 	of the start-up cost aid under subdivision 8 shall be paid within 45 days after the first day 
37.12 	of student attendance for that school year. 
37.13 	(d) In order to receive state aid payments under this subdivision, a charter school in 
37.14 	its first three years of operation must submit a school calendar in the form and manner 
37.15 	requested by the department and a quarterly report to the Department of Education. The 
37.16 	report must list each student by grade, show the student's start and end dates, if any, 
37.17 	with the charter school, and for any student participating in a learning year program, 
37.18 	the report must list the hours and times of learning year activities. The report must be 
37.19 	submitted not more than two weeks after the end of the calendar quarter to the department. 
37.20 	The department must develop a Web-based reporting form for charter schools to use 
37.21 	when submitting enrollment reports. A charter school in its fourth and subsequent year of 
37.22 	operation must submit a school calendar and enrollment information to the department in 
37.23 	the form and manner requested by the department.
37.24 	(e) Notwithstanding sections 317A.701 to 317A.791, upon closure of a charter 
37.25 	school and satisfaction of creditors, cash and investment balances remaining shall be 
37.26 	returned to the state.

37.27 	Sec. 24. Minnesota Statutes 2004, section 124D.61, is amended to read:
37.28 	124D.61 GENERAL REQUIREMENTS FOR PROGRAMS.
37.29 	A district which receives aid pursuant to section  124D.65 must comply with that 
37.30 	enrolls one or more children of limited English proficiency must implement an educational 
37.31 	program that includes at a minimum the following program requirements: 
37.32 	(1) identification and reclassification criteria for children of limited English 
37.33 	proficiency and program entrance and exit criteria for children with limited English 
37.34 	proficiency must be documented by the district, applied uniformly to children of limited 
37.35 	English proficiency, and made available to parents and other stakeholders upon request;
38.1 	(2) a written plan of services that describes programming by English proficiency 
38.2 	level made available to parents upon request. The plan must articulate the amount and 
38.3 	scope of service offered to children of limited English proficiency through an educational 
38.4 	program for children of limited English proficiency;
38.5 	(3) professional development opportunities for ESL, bilingual education, 
38.6 	mainstream, and all staff working with children of limited English proficiency which are: 
38.7 	(i) coordinated with the district's professional development activities; (ii) related to the 
38.8 	needs of children of limited English proficiency; and (iii) ongoing;
38.9 	(4) to the extent possible, the district must avoid isolating children of limited English 
38.10 	proficiency for a substantial part of the school day; and
38.11 	(2) (5) in predominantly nonverbal subjects, such as art, music, and physical 
38.12 	education, permit pupils of limited English proficiency shall be permitted to participate 
38.13 	fully and on an equal basis with their contemporaries in public school classes provided 
38.14 	for these subjects. To the extent possible, the district must assure to pupils enrolled in a 
38.15 	program for limited English proficient students an equal and meaningful opportunity to 
38.16 	participate fully with other pupils in all extracurricular activities.

38.17 	Sec. 25. Minnesota Statutes 2005 Supplement, section 124D.68, subdivision 2, is 
38.18 	amended to read:
38.19 		Subd. 2.Eligible pupils. The following pupils are eligible to participate in the 
38.20 	graduation incentives program:
38.21 	(a) any pupil under the age of 21 who:
38.22 	(1) performs substantially below the performance level for pupils of the same age 
38.23 	in a locally determined achievement test;
38.24 	(2) is at least one year behind in satisfactorily completing coursework or obtaining 
38.25 	credits for graduation;
38.26 	(3) is pregnant or is a parent;
38.27 	(4) has been assessed as chemically dependent;
38.28 	(5) has been excluded or expelled according to sections 121A.40 to 121A.56;
38.29 	(6) has been referred by a school district for enrollment in an eligible program or 
38.30 	a program pursuant to section 124D.69;
38.31 	(7) is a victim of physical or sexual abuse;
38.32 	(8) has experienced mental health problems;
38.33 	(9) has experienced homelessness sometime within six months before requesting a 
38.34 	transfer to an eligible program;
38.35 	(10) speaks English as a second language or has limited English proficiency; or
39.1 	(11) has withdrawn from school or has been chronically truant; or
39.2 	(12) is being treated in a hospital in the seven-county metropolitan area for cancer or 
39.3 	other life threatening illness or is the sibling of an eligible pupil who is being currently 
39.4 	treated, and resides with the pupil's family at least 60 miles beyond the outside boundary 
39.5 	of the seven-county metropolitan area; or
39.6 	(b) any person who is at least 21 years of age and who:
39.7 	(1) has received fewer than 14 years of public or nonpublic education, beginning 
39.8 	at age 5;
39.9 	(2) has not completed the requirements for a high school diploma; and
39.10 	(3) at the time of application, (i) is eligible for unemployment benefits or has 
39.11 	exhausted the benefits, (ii) is eligible for, or is receiving income maintenance and support 
39.12 	services, as defined in section 116L.19, subdivision 5, or (iii) is eligible for services under 
39.13 	the displaced homemaker program or any programs under the federal Jobs Training 
39.14 	Partnership Act or its successor.

39.15 	EFFECTIVE DATE. This section is effective the day following final enactment 
39.16 	and applies to eligible pupils in the 2005-2006 school year and later.

39.17 	Sec. 26. Minnesota Statutes 2004, section 124D.68, subdivision 3, is amended to read:
39.18 		Subd. 3.Eligible programs. (a) A pupil who is eligible according to subdivision 2 
39.19 	may enroll in area learning centers under sections  123A.05 to  123A.08. 
39.20 	(b) A pupil who is eligible according to subdivision 2 and who is between the ages 
39.21 	of 16 and 21 may enroll in postsecondary courses under section  124D.09. 
39.22 	(c) A pupil who is eligible under subdivision 2, may enroll in any public elementary 
39.23 	or secondary education program. However, a person who is eligible according to 
39.24 	subdivision 2, clause (b), may enroll only if the school board has adopted a resolution 
39.25 	approving the enrollment.
39.26 	(d) A pupil who is eligible under subdivision 2, may enroll in any nonpublic, 
39.27 	nonsectarian school that has contracted with the serving school district to provide 
39.28 	educational services. However, notwithstanding other provisions of this section, only a 
39.29 	pupil who is eligible under subdivision 2, paragraph (a), clause (12), may enroll in a 
39.30 	contract alternative school that is specifically structured to provide educational services 
39.31 	to such a pupil.
39.32 	(e) A pupil who is between the ages of 16 and 21 may enroll in any adult basic 
39.33 	education programs approved under section  124D.52 and operated under the community 
39.34 	education program contained in section  124D.19. 

40.1 	EFFECTIVE DATE. This section is effective the day following final enactment 
40.2 	and applies to eligible programs in the 2005-2006 school year and later.

40.3 	Sec. 27. Minnesota Statutes 2004, section 125A.02, subdivision 1, is amended to read:
40.4 		Subdivision 1.Child with a disability. Every child who has a hearing impairment, 
40.5 	blindness, visual disability, speech or language impairment, physical handicap, other 
40.6 	health impairment, mental handicap, emotional/behavioral disorder, specific learning 
40.7 	disability, autism, traumatic brain injury, multiple disabilities, or deaf/blind disability and 
40.8 	needs special instruction and services, as determined by the standards of the commissioner, 
40.9 	is a child with a disability. In addition, every child under age three, and at local district 
40.10 	discretion from age three to age seven, who needs special instruction and services, as 
40.11 	determined by the standards of the commissioner, because the child has a substantial delay 
40.12 	or has an identifiable physical or mental condition known to hinder normal development is 
40.13 	a child with a disability.

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

40.15 	Sec. 28. Minnesota Statutes 2004, section 125A.75, is amended by adding a 
40.16 	subdivision to read:
40.17 		Subd. 9.Litigation costs; annual report. (a) By November 30 of each year, 
40.18 	a school district must annually report the district's special education litigation costs, 
40.19 	including attorney fees and costs of due process hearings, to the commissioner of 
40.20 	education, consistent with the Uniform Financial Accounting and Reporting Standards.
40.21 	(b) By January 15 of each year, the commissioner shall report school district special 
40.22 	education litigation costs to the house of representatives and the senate committees having 
40.23 	jurisdiction over kindergarten through grade 12 education finance.

40.24 	Sec. 29. Minnesota Statutes 2004, section 169.01, subdivision 6, is amended to read:
40.25 		Subd. 6.School bus. "School bus" means a motor vehicle used to transport pupils 
40.26 	to or from a school defined in section  120A.22, or to or from school-related activities, by 
40.27 	the school or a school district, or by someone under an agreement with the school or a 
40.28 	school district. A school bus does not include a motor vehicle transporting children to or 
40.29 	from school for which parents or guardians receive direct compensation from a school 
40.30 	district, a motor coach operating under charter carrier authority, a transit bus providing 
40.31 	services as defined in section  174.22, subdivision 7, a multifunction school activity bus 
40.32 	as defined by federal motor vehicle safety standards, or a vehicle otherwise qualifying 
40.33 	as a type III vehicle under paragraph (5), when the vehicle is properly registered and 
41.1 	insured and being driven by an employee or agent of a school district for nonscheduled 
41.2 	or nonregular transportation. A school bus may be type A, type B, type C, or type D, or 
41.3 	type III as follows: 
41.4 	(1) A "type A school bus" is a van conversion or bus constructed utilizing a cutaway 
41.5 	front section vehicle with a left-side driver's door. The entrance door is behind the front 
41.6 	wheels. This definition includes two classifications: type A-I, with a gross vehicle weight 
41.7 	rating (GVWR) less than or equal to 10,000 14,500 pounds or less; and type A-II, with a 
41.8 	GVWR greater than 10,000 14,500 pounds and less than or equal to 21,500 pounds.
41.9 	(2) A "type B school bus" is constructed utilizing a stripped chassis. The entrance 
41.10 	door is behind the front wheels. This definition includes two classifications: type B-I, 
41.11 	with a GVWR less than or equal to 10,000 pounds; and type B-II, with a GVWR greater 
41.12 	than 10,000 pounds.
41.13 	(3) A "type C school bus" is constructed utilizing a chassis with a hood and front 
41.14 	fender assembly. The entrance door is behind the front wheels. A "type C school bus" also 
41.15 	includes a cutaway truck chassis or truck chassis with cab with or without a left side door 
41.16 	and with a GVWR greater than 21,500 pounds. 
41.17 	(4) A "type D school bus" is constructed utilizing a stripped chassis. The entrance 
41.18 	door is ahead of the front wheels.
41.19 	(5) Type III school buses and type III Head Start buses are restricted to passenger 
41.20 	cars, station wagons, vans, and buses having a maximum manufacturer's rated seating 
41.21 	capacity of ten or fewer people, including the driver, and a gross vehicle weight rating of 
41.22 	10,000 pounds or less. In this subdivision, "gross vehicle weight rating" means the value 
41.23 	specified by the manufacturer as the loaded weight of a single vehicle. A "type III school 
41.24 	bus" and "type III Head Start bus" must not be outwardly equipped and identified as a type 
41.25 	A, B, C, or D school bus or type A, B, C, or D Head Start bus. A van or bus converted to a 
41.26 	seating capacity of ten or fewer and placed in service on or after August 1, 1999, must 
41.27 	have been originally manufactured to comply with the passenger safety standards.

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

41.29 	Sec. 30. Minnesota Statutes 2004, section 169.447, subdivision 2, is amended to read:
41.30 		Subd. 2.Driver seat belt. New School buses and Head Start buses manufactured 
41.31 	after December 31, 1994, must be equipped with driver seat belts and seat belt assemblies 
41.32 	of the type described in section  169.685, subdivision 3. School bus drivers and Head 
41.33 	Start bus drivers must use these seat belts. 

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

42.1 	Sec. 31. Minnesota Statutes 2004, section 169.4501, subdivision 1, is amended to read:
42.2 		Subdivision 1.National standards adopted. Except as provided in sections  
42.3 	169.4502 and  169.4503, the construction, design, equipment, and color of types A, 
42.4 	B, C, and D school buses used for the transportation of school children shall meet the 
42.5 	requirements of the "bus chassis standards" and "bus body standards" in the 2000 2005
42.6 	edition of the "National School Transportation Specifications and Procedures" adopted 
42.7 	by the National Conference Congress on School Transportation. Except as provided 
42.8 	in section  169.4504, the construction, design, and equipment of types A, B, C, and D 
42.9 	school buses used for the transportation of students with disabilities also shall meet the 
42.10 	requirements of the "specially equipped school bus standards" in the 2000 2005 National 
42.11 	School Transportation Specifications and Procedures. The "bus chassis standards," "bus 
42.12 	body standards," and "specially equipped school bus standards" sections of the 2000
42.13 	2005 edition of the "National School Transportation Specifications and Procedures" are 
42.14 	incorporated by reference in this chapter. 

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

42.16 	Sec. 32. Minnesota Statutes 2004, section 169.4501, subdivision 2, is amended to read:
42.17 		Subd. 2.Applicability. (a) The standards adopted in this section and sections  
42.18 	169.4502 and  169.4503, govern the construction, design, equipment, and color of school 
42.19 	buses used for the transportation of school children, when owned or leased and operated 
42.20 	by a school or privately owned or leased and operated under a contract with a school. 
42.21 	Each school, its officers and employees, and each person employed under the contract is 
42.22 	subject to these standards. 
42.23 	(b) The standards apply to school buses manufactured after October 31, 2004
42.24 	December 31, 2006. Buses complying with the standards when manufactured need not 
42.25 	comply with standards established later except as specifically provided for by law.
42.26 	(c) A school bus manufactured on or before October 31, 2004 December 31, 
42.27 	2006, must conform to the Minnesota standards in effect on the date the vehicle was 
42.28 	manufactured except as specifically provided for in law.
42.29 	(d) A new bus body may be remounted on a used chassis provided that the remounted 
42.30 	vehicle meets state and federal standards for new buses which are current at the time of the 
42.31 	remounting. Permission must be obtained from the commissioner of public safety before 
42.32 	the remounting is done. A used bus body may not be remounted on a new or used chassis.

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

43.1 	Sec. 33. Minnesota Statutes 2004, section 169.4502, subdivision 5, is amended to read:
43.2 		Subd. 5.Electrical system; battery. (a) The storage battery, as established by the 
43.3 	manufacturer's rating, must be of sufficient capacity to care for starting, lighting, signal 
43.4 	devices, heating, and other electrical equipment. In a bus with a gas-powered chassis, the 
43.5 	battery or batteries must provide a minimum of 800 cold cranking amperes. In a bus 
43.6 	with a diesel-powered chassis, the battery or batteries must provide a minimum of 1050 
43.7 	cold cranking amperes.
43.8 	(b) In a type B bus with a gross vehicle weight rating of 15,000 pounds or more, and 
43.9 	type C and D buses, the battery shall be temporarily mounted on the chassis frame. The 
43.10 	final location of the battery and the appropriate cable lengths in these buses must comply 
43.11 	with the SBMI design objectives booklet.
43.12 	(c) All batteries shall be mounted according to chassis manufacturers' 
43.13 	recommendations.
43.14 	(d) In a type C bus, other than are powered by diesel fuel, a battery providing at least 
43.15 	550 cold cranking amperes may be installed in the engine compartment only if used in 
43.16 	combination with a generator or alternator of at least 120 130 amperes.
43.17 	(e) A bus with a gross vehicle weight rating of 15,000 pounds or less may be 
43.18 	equipped with a battery to provide a minimum of 550 cold cranking amperes only if used 
43.19 	in combination with an alternator of at least 80 130 amperes. This paragraph does not 
43.20 	apply to those buses with wheelchair lifts or diesel engines.

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

43.22 	Sec. 34. Minnesota Statutes 2004, section 169.4503, subdivision 20, is amended to 
43.23 	read:
43.24 		Subd. 20.Seat and crash barriers. (a) All restraining barriers and passenger seats 
43.25 	shall be covered with a material that has fire retardant or fire block characteristics.
43.26 	(b) All seats must have a minimum cushion depth of 15 inches and a seat back 
43.27 	height of at least 20 inches above the seating reference point. 

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

43.29 	Sec. 35. Minnesota Statutes 2004, section 171.321, subdivision 4, is amended to read:
43.30 		Subd. 4.Training. (a) No person shall drive a class A, B, C, or D school bus when 
43.31 	transporting school children to or from school or upon a school-related trip or activity 
43.32 	without having demonstrated sufficient skills and knowledge to transport students in 
43.33 	a safe and legal manner.
44.1 	(b) A bus driver must have training or experience that allows the driver to meet at 
44.2 	least the following competencies:
44.3 	(1) safely operate the type of school bus the driver will be driving;
44.4 	(2) understand student behavior, including issues relating to students with 
44.5 	disabilities;
44.6 	(3) encourage orderly conduct of students on the bus and handle incidents of 
44.7 	misconduct appropriately;
44.8 	(4) know and understand relevant laws, rules of the road, and local school bus 
44.9 	safety policies;
44.10 	(5) handle emergency situations; and
44.11 	(6) safely load and unload students.
44.12 	(c) The commissioner of public safety shall develop a comprehensive model 
44.13 	school bus driver training program and model assessments for school bus driver training 
44.14 	competencies, which are not subject to chapter 14. A school district, nonpublic school, or 
44.15 	private contractor  may use alternative assessments for bus driver training competencies 
44.16 	with the approval of the commissioner of public safety. After completion of bus driver 
44.17 	training competencies, a driver may receive at least eight hours of school bus in-service 
44.18 	training any year as an alternative to being assessed for bus driver competencies. The 
44.19 	employer shall keep the assessment and a record of the in-service training for the current 
44.20 	period available for inspection by representatives of the commissioner.

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

44.22 	Sec. 36. Minnesota Statutes 2004, section 171.321, subdivision 5, is amended to read:
44.23 		Subd. 5.Annual evaluation and license verification. (a) A school district, 
44.24 	nonpublic school, or private contractor shall provide in-service training annually by June 
44.25 	30 of each year to each school bus driver.
44.26 	(b) A school district, nonpublic school, or private contractor shall annually by June 
44.27 	30 of each year  verify the validity of the driver's license of each employee who regularly 
44.28 	transports students for the district in a type A school bus, a type B school bus, a type C 
44.29 	school bus, or type D school bus, or regularly transports students for the district in a type 
44.30 	III vehicle with the National Driver Register or with the Department of Public Safety.

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

44.32 	Sec. 37. Minnesota Statutes 2004, section 299F.30, is amended to read:
44.33 	299F.30 FIRE DRILL IN SCHOOL; DOORS AND EXITS.
45.1 		Subdivision 1.Duties of fire marshal. Consistent with this section and section 
45.2 	121A.035, it shall be the duty of the state fire marshal, deputies and assistants, to require 
45.3 	public and private schools and educational institutions to have at least nine fire drills 
45.4 	each school year and to keep all doors and exits unlocked from the inside of the building 
45.5 	during school hours. The fire marshal must require nonpublic schools and educational 
45.6 	institutions not subject to section 121A.035 to have at least one fire drill each month 
45.7 	during the school year.
45.8 		Subd. 2.Fire drill. Each superintendent, principal or other person in charge of a 
45.9 	public or private school, educational institution, children's home or orphanage housing 20 
45.10 	or more students or other persons, shall instruct and train such students or other persons to 
45.11 	quickly and expeditiously quit the premises in case of fire or other emergency by means of 
45.12 	drills or rapid dismissals at least once each month while such school, institution, home or 
45.13 	orphanage is in operation. Records of such drills shall be posted so that such records are 
45.14 	available for review by the state fire marshal at all times and shall include the drill date 
45.15 	and the time required to evacuate the building.
45.16 		Subd. 3.School doors and exits. Consistent with this section and section 
45.17 	121A.035, each superintendent, principal or other person in charge of a public or private 
45.18 	school, educational institution, children's home or orphanage shall keep all doors and exits 
45.19 	of such school, institution, home or orphanage unlocked so that persons can leave by such 
45.20 	doors or exits at any time during the hours of normal operation.

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

45.23 	Sec. 38. Minnesota Statutes 2005 Supplement, section 626.556, subdivision 3, is 
45.24 	amended to read:
45.25 		Subd. 3.Persons mandated to report. (a) Subject to paragraph (c), a person who 
45.26 	knows or has reason to believe a child is being neglected or physically or sexually abused, 
45.27 	as defined in subdivision 2, or has been neglected or physically or sexually abused within 
45.28 	the preceding three years, shall immediately report the information to the local welfare 
45.29 	agency, agency responsible for assessing or investigating the report, police department, or 
45.30 	the county sheriff if the person is:
45.31 	(1) a professional or professional's delegate who is engaged in the practice of 
45.32 	the healing arts, social services, hospital administration, psychological or psychiatric 
45.33 	treatment, child care, education, correctional supervision, probation and correctional 
45.34 	services, or law enforcement; or
46.1 	(2) employed as a member of the clergy and received the information while 
46.2 	engaged in ministerial duties, provided that a member of the clergy is not required by 
46.3 	this subdivision to report information that is otherwise privileged under section 595.02, 
46.4 	subdivision 1, paragraph (c).
46.5 	The police department or the county sheriff, upon receiving a report, shall 
46.6 	immediately notify the local welfare agency or agency responsible for assessing or 
46.7 	investigating the report, orally and in writing. The local welfare agency, or agency 
46.8 	responsible for assessing or investigating the report, upon receiving a report, shall 
46.9 	immediately notify the local police department or the county sheriff orally and in writing. 
46.10 	The county sheriff and the head of every local welfare agency, agency responsible for 
46.11 	assessing or investigating reports, and police department shall each designate a person 
46.12 	within their agency, department, or office who is responsible for ensuring that the 
46.13 	notification duties of this paragraph and paragraph (b) are carried out. Nothing in this 
46.14 	subdivision shall be construed to require more than one report from any institution, facility, 
46.15 	school, or agency. If the agency receiving a report determines that it is not responsible for 
46.16 	assessing or investigating the report, the agency shall immediately notify the agency it 
46.17 	determines is responsible for assessing or investigating the report under this section.
46.18 	(b) Any person may voluntarily report to the local welfare agency, agency 
46.19 	responsible for assessing or investigating the report, police department, or the county 
46.20 	sheriff if the person knows, has reason to believe, or suspects a child is being or has been 
46.21 	neglected or subjected to physical or sexual abuse. The police department or the county 
46.22 	sheriff, upon receiving a report, shall immediately notify the local welfare agency or 
46.23 	agency responsible for assessing or investigating the report, orally and in writing. The 
46.24 	local welfare agency or agency responsible for assessing or investigating the report, upon 
46.25 	receiving a report, shall immediately notify the local police department or the county 
46.26 	sheriff orally and in writing.
46.27 	(c) A person mandated to report physical or sexual child abuse or neglect occurring 
46.28 	within a licensed facility or a school as defined under subdivision 3b, shall report the 
46.29 	information to the agency responsible for licensing the facility under sections 144.50 to 
46.30 	144.58; 241.021; 245A.01 to 245A.16; or chapter 245B; or a nonlicensed personal care 
46.31 	provider organization as defined in sections 256B.04, subdivision 16; and 256B.0625, 
46.32 	subdivision 19, or to the agency responsible for assessing or investigating the report, if the 
46.33 	facility is not licensed. A health or corrections agency receiving a report may request the 
46.34 	local welfare agency to provide assistance pursuant to subdivisions 10, 10a, and 10b. A 
46.35 	board or other entity whose licensees perform work within a school facility, upon receiving 
46.36 	a complaint of alleged maltreatment, shall provide information about the circumstances of 
47.1 	the alleged maltreatment to the commissioner of education. Section 13.03, subdivision 4, 
47.2 	applies to data received by the commissioner of education from a licensing entity.
47.3 	(d) Any person mandated to report shall receive a summary of the disposition of 
47.4 	any report made by that reporter, including whether the case has been opened for child 
47.5 	protection or other services, or if a referral has been made to a community organization, 
47.6 	unless release would be detrimental to the best interests of the child. Any person who is 
47.7 	not mandated to report shall, upon request to the local welfare agency, receive a concise 
47.8 	summary of the disposition of any report made by that reporter, unless release would be 
47.9 	detrimental to the best interests of the child.
47.10 	(e) For purposes of this subdivision, "immediately" means as soon as possible but in 
47.11 	no event longer than 24 hours.

47.12 	Sec. 39. Minnesota Statutes 2004, section 626.556, subdivision 3b, is amended to read:
47.13 		Subd. 3b.AgencyDepartment of Education responsible for assessing or 
47.14 	investigating reports of maltreatment. The Department of Education is the agency 
47.15 	responsible for assessing or investigating allegations of child maltreatment in schools 
47.16 	as defined in sections  120A.05, subdivisions 9, 11, and 13; 120A.05, subdivisions 9, 
47.17 	11, 13, and 17, and  124D.10, unless the alleged maltreatment occurred in a program or 
47.18 	facility licensed by the commissioner of human services. "School" includes a school-age 
47.19 	care program, Head Start program, early childhood family education program, school 
47.20 	district-administered day treatment facility, or other program licensed or administered 
47.21 	by the commissioner of education that provides services for minors and is located in 
47.22 	or operated by a school. 

47.23 	Sec. 40. Minnesota Statutes 2004, section 626.556, subdivision 3c, is amended to read:
47.24 		Subd. 3c.Agency Local welfare agency, Department of Human Services, 
47.25 	or Department of Health responsible for assessing or investigating reports of 
47.26 	maltreatment. The following agencies are the administrative agencies responsible for 
47.27 	assessing or investigating reports of alleged child maltreatment in facilities made under 
47.28 	this section:
47.29 	(1)(a) The county local welfare agency is the agency responsible for assessing or 
47.30 	investigating:
47.31 	(1) allegations of maltreatment in child foster care, family child care, and legally 
47.32 	unlicensed child care and in juvenile correctional facilities licensed under section  241.021
47.33 	located in the local welfare agency's county; and
48.1 	(2) other allegations of maltreatment that are not the responsibility of another agency 
48.2 	under this subdivision or subdivision 3b.
48.3 	(2)(b) The Department of Human Services is the agency responsible for assessing 
48.4 	or investigating allegations of maltreatment in facilities licensed under chapters 245A and 
48.5 	245B, except for child foster care and family child care; and.
48.6 	(3)(c) The Department of Health is the agency responsible for assessing or 
48.7 	investigating allegations of child maltreatment in facilities licensed under sections  144.50
48.8 	to  144.58, and in unlicensed home health care. 

48.9 	Sec. 41. Laws 2005, First Special Session chapter 5, article 2, section 84, subdivision 
48.10 	13, is amended to read:
48.11 	
48.12 	Subd. 13.  Examination fees; teacher training and support programs. (a) For 
48.13 	students' advanced placement and  international baccalaureate examination fees under 
48.14 	Minnesota  Statutes, section 120B.13, subdivision 3, and the training and  related costs 
48.15 	for teachers and other interested educators under  Minnesota Statutes, section 120B.13, 
48.16 	subdivision 1:  

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

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

49.9 	Sec. 42. RULE ON VISUALLY IMPAIRED TO INCLUDE REFERENCES TO 
49.10 	"BLIND" AND "BLINDNESS."
 49.11 	The commissioner of education, where appropriate, must incorporate references to 
49.12 	"blind" and "blindness" into the definition of visually impaired under Minnesota Rules, 
49.13 	part 3525.1345, and amend the rule title to include the word "blind."

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

49.15 	Sec. 43. 2006 SCHOOL ACCOUNTABILITY REPORT.
 49.16 	Notwithstanding Minnesota Statutes, section 120B.36, for 2006 reporting only, the 
49.17 	Department of Education may delay the release to the public and the posting of the 2006 
49.18 	school performance report cards and adequate yearly progress data on its public Web site 
49.19 	to no later than October 15, 2006.

49.20 	Sec. 44. CHARACTER DEVELOPMENT EDUCATION; PILOT PROGRAM.
 49.21 		Subdivision 1.Pilot program created. School districts may develop a pilot 
49.22 	program to implement comprehensive character development education under Minnesota 
49.23 	Statutes, section 120B.232, subdivision 1.
49.24 		Subd. 2.Approved provider list. (a) Based upon available resources, the 
49.25 	commissioner of education shall maintain a character development education curriculum 
49.26 	approved provider list. The character development education curriculum of approved 
49.27 	providers shall be research based and evaluated by an independent party. Approved 
49.28 	comprehensive character development education curriculum must include:
49.29 	(1) age appropriate character development for the classroom in elementary or 
49.30 	secondary grades;
49.31 	(2) teacher training workshops and in-service training; 
49.32 	(3) midyear consulting between the school district and the provider; and
50.1 	(4) an assessment program.
50.2 	(b) Funding for the approved provider list shall be from existing department 
50.3 	resources under Minnesota Statutes, section 120B.232, subdivision 2.

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

50.5 	Sec. 45. ADVISORY TASK FORCE ON OPTIONS FOR ACCELERATED 
50.6 	K-12 TECHNOLOGY, SCIENCE, AND MATHEMATICS PROGRAMS 
50.7 	THROUGHOUT MINNESOTA.
 50.8 	(a) An advisory task force on options for accelerated kindergarten through grade 
50.9 	12 technology, science, and mathematics programs throughout Minnesota is established 
50.10 	to consider and recommend to the legislature alternatives for delivering accelerated 
50.11 	technology, science, and mathematics programs to eligible students throughout Minnesota 
50.12 	that include creating an academic center. Recommended programs must provide 
50.13 	accelerated technology, science, and mathematics instruction to eligible students in grades 
50.14 	6 through 12 and be cost effective and efficiently implemented and operated. Other 
50.15 	recommended programs may offer accelerated technology, science, and mathematics 
50.16 	instruction to other eligible elementary grade students,  provide out-of-school and summer 
50.17 	school K-12 technology, science, and mathematics instruction throughout the state, provide 
50.18 	professional development for K-12 teachers in technology, science, and mathematics 
50.19 	curriculum and instruction, and develop technology, science, and mathematics curriculum. 
50.20 	(b) The advisory task force at least must:
50.21 	(1) evaluate and compare at least five alternatives for delivering accelerated 
50.22 	technology, science, and mathematics programs to Minnesota students that include creating 
50.23 	an academic center that may be patterned after the Perpich Center for Arts Education 
50.24 	under Minnesota Statutes, chapter 129C, and may include online learning, satellite 
50.25 	technology, science, and mathematics centers, and a consortium of available accelerated 
50.26 	technology, science, and mathematics or accelerated education programs, among other 
50.27 	alternatives, and evaluate how such programs may be integrated into the academic center;
50.28 	(2) identify and evaluate possible members for a science, mathematics, engineering, 
50.29 	and technology leadership consortium composed of representatives of corporations, 
50.30 	organizations, educational institutions, and research facilities to help implement 
50.31 	accelerated K-12 technology, science, and mathematics programs in Minnesota that 
50.32 	include creating an academic center;
50.33 	(3) evaluate and compare at least three alternatives for preparing and assisting 
50.34 	educational leaders who are literate in technology, science, and mathematics to help 
50.35 	implement accelerated K-12 technology, science, and mathematics programs in Minnesota 
51.1 	that include creating an academic center and may include gifted education and accelerated 
51.2 	technology, science, and mathematics teacher training programs, and evaluate how such 
51.3 	programs may be integrated into the academic center; and 
51.4 	(4) identify and evaluate postsecondary career and technical education programs 
51.5 	offering or requiring accelerated technology, science, and mathematics instruction.
51.6 	(c) The commissioner of education shall appoint a 17-member advisory task force on 
51.7 	options for accelerated K-12 technology, science, and mathematics programs throughout 
51.8 	Minnesota that represents the following representatives: a gifted education coordinator, an 
51.9 	educator holding a gifted education certificate or an instructor in a graduate level gifted 
51.10 	education program; a currently licensed or retired high school physical science teacher; a 
51.11 	currently licensed or retired high school mathematics teacher; a faculty member providing 
51.12 	instruction under the Minnesota postsecondary enrollment options program or an educator 
51.13 	providing instruction under the college in the schools program; a faculty member or 
51.14 	educator providing instruction in the Minnesota talented youth mathematics program; a 
51.15 	University of Minnesota mathematics or engineering professor; a University of Minnesota 
51.16 	physical science professor; a manager or director in a high technology field, corporation, 
51.17 	organization, or facility; a manager or director in a medical field or profession; a manager 
51.18 	or director in a research-based field, corporation, organization, or facility; one or more 
51.19 	parents of high school students gifted in technology, mathematics, or science; a physical 
51.20 	science teacher and a biology teacher, one of whom is licensed to teach middle level 
51.21 	students and one of whom is licensed to teach high school level students; a high school 
51.22 	career and technical instructor; a faculty member in a postsecondary institution offering 
51.23 	technical two-year degrees who provides career and technical instruction; a manager or 
51.24 	director in a technology, mathematics, or science industry who employs persons with 
51.25 	associate degrees in a technical field; a manager or director in the biosciences industry; and 
51.26 	two at-large members. In appointing members, the commissioner must attempt to ensure 
51.27 	geographic balance. Task force members must actively seek the participation of gifted and 
51.28 	talented students to advise the task force throughout its existence on any recommendations 
51.29 	the task force proposes to submit to the legislature and on any other recommendations 
51.30 	related to this section. Task force members may not receive compensation and may not be 
51.31 	reimbursed for expenses related to serving on the task force. The task force may receive, 
51.32 	for the benefit of the task force, bequests, donations, or gifts for any proper purpose 
51.33 	and apply the bequests, donations, or gifts to the purpose designated. Notwithstanding 
51.34 	any other law to the contrary, the task force may conduct meetings of its members by 
51.35 	telephone or other electronic means where all members can hear one another and all the 
51.36 	discussion, at least one member is physically present at the regular meeting location, 
52.1 	and interested members of the public can hear all the discussion. Task force members' 
52.2 	terms and other task force matters are subject to Minnesota Statutes, section 15.059. 
52.3 	The task force must submit by January 30, 2007, a written report and presentation to the 
52.4 	education policy and finance committees of the legislature that include recommendations 
52.5 	on alternatives for delivering accelerated technology, science, and mathematics programs 
52.6 	to eligible students throughout Minnesota.
52.7 	(d) Upon request, the commissioner of education must provide the task force with 
52.8 	technical and other support services. The commissioner must use funds from the current 
52.9 	operating budget of the Department of Education to cover any costs the commissioner 
52.10 	incurs in providing services to the task force.
52.11 	(e) The task force expires June 30, 2007.

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

52.13 	Sec. 46. ADVISORY TASK FORCE ON MINNESOTA AMERICAN INDIAN 
52.14 	TRIBES AND COMMUNITIES AND K-12 STANDARDS-BASED REFORM.
 52.15 	(a) An advisory task force on Minnesota American Indian tribes and communities 
52.16 	and K-12 standards-based reform is established to examine the impact of state and 
52.17 	federal standards-based reform on Minnesota's K-12 students, including American 
52.18 	Indian students, and to recommend to the legislature changes to the state's performance 
52.19 	standards, content requirements, assessment measures, and teacher preparation programs 
52.20 	to most effectively meet the education needs of all students, including American Indian 
52.21 	students, enrolled in Minnesota schools. The task force, in consultation with American 
52.22 	Indian educators and parents, and others who advocate for American Indian children, at 
52.23 	least must determine if:
52.24 	(1) state education standards and assessments are appropriate for American Indian 
52.25 	students;
52.26 	(2) American Indian students are fairly compared;
52.27 	(3) American Indian students receive the assistance they need to achieve the state 
52.28 	standards; and
52.29 	(4) schools receive financial and technical assistance sufficient to meet the education 
52.30 	needs of American Indian students.
52.31 	(b) The commissioner of education shall appoint an advisory task force on 
52.32 	Minnesota American Indian tribes and communities and K-12 standards-based reform that 
52.33 	is composed of the following representatives: Department of Education staff experienced 
52.34 	in working with American Indian students and programs; Minnesota American Indian 
52.35 	tribes and communities; Minnesota School Boards Association; school administrators; 
53.1 	Education Minnesota; the state Board of Teaching; a minority member and majority 
53.2 	member both from the Minnesota House of Representatives and from the Minnesota 
53.3 	Senate; the Minnesota Council on Indian Affairs; postsecondary faculty who serve as 
53.4 	instructors in teacher preparation programs; local community service providers who work 
53.5 	with Minnesota American Indian tribes and communities; and other representatives 
53.6 	recommended by task force members. Task force members may not receive compensation 
53.7 	and may not be reimbursed for expenses related to serving on the task force. The task force 
53.8 	may receive, for the benefit of the task force, bequests, donations, or gifts for any proper 
53.9 	purpose and apply the bequests, donations, or gifts to the purpose designated. Task force 
53.10 	members' terms and other task force matters are subject to Minnesota Statutes, section 
53.11 	15.059. The task force must submit to the legislative committees having jurisdiction 
53.12 	over education policy and finance a preliminary written report by February 15, 2007, 
53.13 	and a final report by February 15, 2008, that includes any recommended changes to the 
53.14 	state's performance standards, content requirements, assessment measures, and teacher 
53.15 	preparation programs to most effectively meet the educational needs of all students, 
53.16 	including American Indian students, enrolled in Minnesota schools.
53.17 	(c) Upon request, the commissioner of education must provide the task force with 
53.18 	technical and other support services. The commissioner must use funds from the current 
53.19 	operating budget of the Department of Education to cover any costs the commissioner 
53.20 	incurs in providing services to the task force.
53.21 	(d) The task force expires on February 16, 2008.

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

53.23 	Sec. 47. MATH AND SCIENCE ASSESSMENT STUDY.
 53.24 	The commissioner of education may contract with Boston College for Minnesota 
53.25 	4th and 8th grade students to participate in the Trends in International Mathematics and 
53.26 	Science Study (TIMSS) international assessment of student achievement in math and 
53.27 	science. School districts must apply to participate in the study on a form and in the manner 
53.28 	prescribed by the commissioner. The commissioner, in collaboration with Boston College, 
53.29 	may select districts to participate in the study. The provisions of Minnesota Statutes, 
53.30 	section 16C.08, do not apply to this contract.

53.31 	Sec. 48.  REPEALER.
 53.32 	(a) Minnesota Statutes 2004, sections 121A.23; and 123B.749, are repealed.
53.33 	(b) Minnesota Statutes 2004, sections 169.4502, subdivision 15; and 169.4503, 
53.34 	subdivisions 17, 18, and 26, are repealed.

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

54.2 	ARTICLE 3
54.3 	SPECIAL EDUCATION

54.4 	Section 1. Minnesota Statutes 2005 Supplement, section 125A.11, subdivision 1, 
54.5 	is amended to read:
54.6 		Subdivision 1.Nonresident tuition rate; other costs. (a) For fiscal year 2006, 
54.7 	when a school district provides instruction and services outside the district of residence, 
54.8 	board and lodging, and any tuition to be paid, shall be paid by the district of residence. The 
54.9 	tuition rate to be charged for any child with a disability, excluding a pupil for whom tuition 
54.10 	is calculated according to section 127A.47, subdivision 7, paragraph (d), must be the sum 
54.11 	of (1) the actual cost of providing special instruction and services to the child including 
54.12 	a proportionate amount for special transportation and unreimbursed building lease and 
54.13 	debt service costs for facilities used primarily for special education, plus (2) the amount 
54.14 	of general education revenue and referendum aid attributable to the pupil, minus (3) the 
54.15 	amount of special education aid for children with a disability received on behalf of that 
54.16 	child, minus (4) if the pupil receives special instruction and services outside the regular 
54.17 	classroom for more than 60 percent of the school day, the amount of general education 
54.18 	revenue and referendum aid, excluding portions attributable to district and school 
54.19 	administration, district support services, operations and maintenance, capital expenditures, 
54.20 	and pupil transportation, attributable to that pupil for the portion of time the pupil receives 
54.21 	special instruction in and services outside of the regular classroom. If the boards involved 
54.22 	do not agree upon the tuition rate, either board may apply to the commissioner to fix the 
54.23 	rate. Notwithstanding chapter 14, the commissioner must then set a date for a hearing or 
54.24 	request a written statement from each board, giving each board at least ten days' notice, 
54.25 	and after the hearing or review of the written statements the commissioner must make an 
54.26 	order fixing the tuition rate, which is binding on both school districts. General education 
54.27 	revenue and referendum aid attributable to a pupil must be calculated using the resident 
54.28 	district's average general education and referendum revenue per adjusted pupil unit.
54.29 	(b) For fiscal year 2007 and later, when a school district provides special instruction 
54.30 	and services for a pupil with a disability as defined in section 125A.02 outside the district 
54.31 	of residence, excluding a pupil for whom an adjustment to special education aid is 
54.32 	calculated according to section 127A.47, subdivision 7, paragraph (e), special education 
54.33 	aid paid to the resident district must be reduced by an amount equal to (1) the actual 
54.34 	cost of providing special instruction and services to the pupil, including a proportionate 
54.35 	amount for special transportation and unreimbursed building lease and debt service costs 
55.1 	for facilities used primarily for special education, plus (2) the amount of general education 
55.2 	revenue and referendum aid attributable to that pupil, minus (3) the amount of special 
55.3 	education aid for children with a disability received on behalf of that child, minus (4) if the 
55.4 	pupil receives special instruction and services outside the regular classroom for more than 
55.5 	60 percent of the school day, the amount of general education revenue and referendum 
55.6 	aid, excluding portions attributable to district and school administration, district support 
55.7 	services, operations and maintenance, capital expenditures, and pupil transportation, 
55.8 	attributable to that pupil for the portion of time the pupil receives special instruction in
55.9 	and services outside of  the regular classroom. General education revenue and referendum 
55.10 	aid attributable to a pupil must be calculated using the resident district's average general 
55.11 	education revenue and referendum aid per adjusted pupil unit. Special education aid 
55.12 	paid to the district or cooperative providing special instruction and services for the pupil 
55.13 	must be increased by the amount of the reduction in the aid paid to the resident district. 
55.14 	Amounts paid to cooperatives under this subdivision and section 127A.47, subdivision 
55.15 	7, shall be recognized and reported as revenues and expenditures on the resident school 
55.16 	district's books of account under sections 123B.75 and 123B.76. If the resident district's 
55.17 	special education aid is insufficient to make the full adjustment, the remaining adjustment 
55.18 	shall be made to other state aid due to the district.
55.19 	(c) Notwithstanding paragraphs (a) and (b) and section 127A.47, subdivision 7, 
55.20 	paragraphs (d) and (e), a charter school where more than 30 percent of enrolled students 
55.21 	receive special education and related services, an intermediate district, or a special 
55.22 	education cooperative, or a school district that served as the applicant agency for a group 
55.23 	of school districts for federal special education aids for fiscal year 2006 may apply to the 
55.24 	commissioner for authority to charge the resident district an additional amount to recover 
55.25 	any remaining unreimbursed costs of serving pupils with a disability. The application must 
55.26 	include a description of the costs and the calculations used to determine the unreimbursed 
55.27 	portion to be charged to the resident district. Amounts approved by the commissioner 
55.28 	under this paragraph must be included in the tuition billings or aid adjustments under 
55.29 	paragraph (a) or (b), or section 127A.47, subdivision 7, paragraph (d) or (e), as applicable.
55.30 	(d) For purposes of this subdivision and section 127A.47, subdivision 7, paragraphs 
55.31 	(d) and (e), "general education revenue and referendum aid" means the sum of the general 
55.32 	education revenue according to section 126C.10, subdivision 1, excluding alternative 
55.33 	teacher compensation revenue, plus the referendum aid according to section 126C.17, 
55.34 	subdivision 7, as adjusted according to section 127A.47, subdivision 7, paragraphs (a) 
55.35 	to (c).

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

56.1 	Sec. 2. Minnesota Statutes 2004, section 125A.515, subdivision 1, is amended to read:
56.2 		Subdivision 1.Approval of education programs. The commissioner shall 
56.3 	approve education programs for placement of children and youth in care and treatment
56.4 	residential facilities including detention centers, before being licensed by the Department 
56.5 	of Human Services under Minnesota Rules, parts 9545.0905 to 9545.1125 and 9545.1400 
56.6 	to 9545.1480, or the Department of Corrections under Minnesota Rules, chapters 2925, 
56.7 	2930, 2935, and 2950. Education programs in these facilities shall conform to state and 
56.8 	federal education laws including the Individuals with Disabilities Education Act (IDEA).
56.9 	This section applies only to placements in facilities licensed by the Department of Human 
56.10 	Services or the Department of Corrections.

56.11 	Sec. 3. Minnesota Statutes 2004, section 125A.515, subdivision 3, is amended to read:
56.12 		Subd. 3.Responsibilities for providing education. (a) The district in which the 
56.13 	residential facility is located must provide education services, including special education 
56.14 	if eligible, to all students placed in a facility for care and treatment.
56.15 	(b) For education programs operated by the Department of Corrections, the 
56.16 	providing district shall be the Department of Corrections. For students remanded to the 
56.17 	commissioner of corrections, the providing and resident district shall be the Department 
56.18 	of Corrections.
56.19 	(c) Placement for care and treatment does not automatically make a student eligible 
56.20 	for special education. A student placed in a care and treatment facility is eligible for 
56.21 	special education under state and federal law including the Individuals with Disabilities 
56.22 	Education Act under United States Code, title 20, chapter 33.

56.23 	Sec. 4. Minnesota Statutes 2004, section 125A.515, subdivision 5, is amended to read:
56.24 		Subd. 5.Education programs for students placed in residential facilities for 
56.25 	care and treatment. (a) When a student is placed in a care and treatment facility
56.26 	approved under this section that has an on-site education program, the providing district, 
56.27 	upon notice from the care and treatment facility, must contact the resident district within 
56.28 	one business day to determine if a student has been identified as having a disability, and 
56.29 	to request at least the student's transcript, and for students with disabilities, the most 
56.30 	recent individualized education plan (IEP) and evaluation report, and to determine if the 
56.31 	student has been identified as a student with a disability. The resident district must send a 
56.32 	facsimile copy to the providing district within two business days of receiving the request.
56.33 	(b) If a student placed for care and treatment under this section has been identified as 
56.34 	having a disability and has an individual education plan in the resident district:
57.1 	(1) the providing agency must conduct an individualized education plan meeting 
57.2 	to reach an agreement about continuing or modifying special education services in 
57.3 	accordance with the current individualized education plan goals and objectives and to 
57.4 	determine if additional evaluations are necessary; and
57.5 	(2) at least the following people shall receive written notice or documented phone 
57.6 	call to be followed with written notice to attend the individualized education plan meeting:
57.7 	(i) the person or agency placing the student;
57.8 	(ii) the resident district;
57.9 	(iii) the appropriate teachers and related services staff from the providing district;
57.10 	(iv) appropriate staff from the care and treatment residential facility;
57.11 	(v) the parents or legal guardians of the student; and
57.12 	(vi) when appropriate, the student.
57.13 	(c) For a student who has not been identified as a student with a disability, a 
57.14 	screening must be conducted by the providing districts as soon as possible to determine 
57.15 	the student's educational and behavioral needs and must include a review of the student's 
57.16 	educational records.

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

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

57.33 	Sec. 7. Minnesota Statutes 2004, section 125A.515, subdivision 9, is amended to read:
58.1 		Subd. 9.Reimbursement for education services. (a) Education services 
58.2 	provided to students who have been placed for care and treatmentunder this section are 
58.3 	reimbursable in accordance with special education and general education statutes.
58.4 	(b) Indirect or consultative services provided in conjunction with regular education 
58.5 	prereferral interventions and assessment provided to regular education students suspected 
58.6 	of being disabled and who have demonstrated learning or behavioral problems in a 
58.7 	screening are reimbursable with special education categorical aids.
58.8 	(c) Regular education, including screening, provided to students with or without 
58.9 	disabilities is not reimbursable with special education categorical aids.

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

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

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

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

59.1 	Sec. 11. Minnesota Statutes 2005 Supplement, section 125A.79, subdivision 1, is 
59.2 	amended to read:
59.3 		Subdivision 1.Definitions. For the purposes of this section, the definitions in this 
59.4 	subdivision apply.
59.5 	(a) "Unreimbursed special education cost" means the sum of the following:
59.6 	(1) expenditures for teachers' salaries, contracted services, supplies, equipment, and 
59.7 	transportation services eligible for revenue under section 125A.76; plus
59.8 	(2) expenditures for tuition bills received under sections 125A.03 to 125A.24 and 
59.9 	125A.65 for services eligible for revenue under section 125A.76, subdivision 2; minus
59.10 	(3) revenue for teachers' salaries, contracted services, supplies, and equipment under 
59.11 	section 125A.76; minus
59.12 	(4) tuition receipts under sections 125A.03 to 125A.24 and 125A.65 for services 
59.13 	eligible for revenue under section 125A.76, subdivision 2.
59.14 	(b) "General revenue" means the sum of the general education revenue according to 
59.15 	section 126C.10, subdivision 1, as adjusted according to section 127A.47, subdivisions 
59.16 	7 and 8excluding alternative teacher compensation revenue, plus the total qualifying 
59.17 	referendum revenue specified in paragraph (e) minus transportation sparsity revenue 
59.18 	minus total operating capital revenue.
59.19 	(c) "Average daily membership" has the meaning given it in section 126C.05.
59.20 	(d) "Program growth factor" means 1.02 for fiscal year 2003, and 1.0 for fiscal 
59.21 	year 2004 and later.
59.22 	(e) "Total qualifying referendum revenue" means two-thirds of the district's total 
59.23 	referendum revenue as adjusted according to section 127A.47, subdivision 7, paragraphs 
59.24 	(a) to (c), for fiscal year 2006, one-third of the district's total referendum revenue for fiscal 
59.25 	year 2007, and none of the district's total referendum revenue for fiscal year 2008 and later.

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

59.27 	Sec. 12. SPECIAL EDUCATION FORECAST MAINTENANCE OF EFFORT.
 59.28 	(a) If, on the basis of a forecast of general fund revenues and expenditures under 
59.29 	Minnesota Statutes, section 16A.103; expenditures for special education aid under 
59.30 	Minnesota Statutes, section 125A.76; transition for disabled students under Minnesota 
59.31 	Statutes, section 124D.454; travel for home-based services under Minnesota Statutes, 
59.32 	section 125A.75, subdivision 1; aid for students with disabilities under Minnesota Statutes, 
59.33 	section 125A.75, subdivision 3; court-placed special education under Minnesota Statutes, 
59.34 	section 125A.79, subdivision 4; or out-of-state tuition under Minnesota Statutes, section 
59.35 	125A.79, subdivision 8, are projected to be less than the amount previously forecast for an 
60.1 	enacted budget, the forecast excess from these programs, up to an amount sufficient to 
60.2 	meet federal special education maintenance of effort, is added to the state total special 
60.3 	education aid in Minnesota Statutes, section 125A.76, subdivision 4.
60.4 	(b) If, on the basis of a forecast of general fund revenues and expenditures under 
60.5 	Minnesota Statutes, section 16A.103, expenditures in the programs in this section are 
60.6 	projected to be greater than previously forecast for an enacted budget, and an addition to 
60.7 	state total special education aid has been made under paragraph (a), the state total special 
60.8 	education aid must be reduced by the lesser of the amount of the expenditure increase or 
60.9 	the amount previously added to state total special education aid, and this amount must be 
60.10 	taken from the programs that were forecast to have a forecast excess.
60.11 	(c) For the purpose of this section, "previously forecast for an enacted budget" means 
60.12 	the allocation of funding for these programs in the most recent forecast of general fund 
60.13 	revenues and expenditures or the act appropriating money for these programs, whichever 
60.14 	occurred most recently. It does not include planning estimates for a future biennium.

60.15 	Sec. 13. INTERMEDIATE DISTRICT SPECIAL EDUCATION TUITION 
60.16 	BILLING FOR FISCAL YEARS 2006 AND 2007.
 60.17 	(a) Notwithstanding Minnesota Statutes, sections 125A.11, subdivision 1, paragraph 
60.18 	(a), and 127A.47, subdivision 7, paragraph (d), for fiscal year 2006, an intermediate 
60.19 	district is not subject to the uniform special education tuition billing calculations, but may 
60.20 	instead continue to bill the resident school districts for the actual unreimbursed costs of 
60.21 	serving pupils with a disability as determined by the intermediate district.
60.22 	(b) Notwithstanding Minnesota Statutes, section 125A.11, subdivision 1, paragraph 
60.23 	(c), for fiscal year 2007 only, an intermediate district may apply to the commissioner of 
60.24 	education for a waiver from the uniform special education tuition calculations and aid 
60.25 	adjustments under Minnesota Statutes, sections 125A.11, subdivision 1, paragraph (b), and 
60.26 	127A.47, subdivision 7, paragraph (e). The commissioner must grant the waiver within 30 
60.27 	days of receiving the following information from the intermediate district:
60.28 	(1) a detailed description of the intermediate district's methodology for calculating 
60.29 	special education tuition for fiscal years 2006 and 2007, as required by the intermediate 
60.30 	district to recover the full cost of serving pupils with a disability;
60.31 	(2) sufficient data to determine the total amount of special education tuition actually 
60.32 	charged for each student with a disability, as required by the intermediate district to 
60.33 	recover the full cost of serving pupils with a disability in fiscal year 2006; and
60.34 	(3) sufficient data to determine the amount that would have been charged for each 
60.35 	student for fiscal year 2006 using the uniform tuition billing methodology according 
61.1 	to Minnesota Statutes, section 125A.11, subdivision 1, or 127A.47, subdivision 7, as 
61.2 	applicable.

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

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

61.8 	Sec. 15.  REPEALER.
 61.9 	Minnesota Statutes 2004, sections 125A.10; and 125A.515, subdivision 2, are 
61.10 	repealed.

61.11 	ARTICLE 4
61.12 	FACILITIES, ACCOUNTING, AND TECHNOLOGY

61.13 	Section 1. Minnesota Statutes 2004, section 123A.44, is amended to read:
61.14 	123A.44 CITATION.
61.15 	Sections  123A.441 to  123A.446 may be cited as the "Cooperative Secondary
61.16 	Facilities Grant Act." 

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

61.18 	Sec. 2. Minnesota Statutes 2004, section 123A.441, is amended to read:
61.19 	123A.441 POLICY AND PURPOSE.
61.20 	Because of the rates of decline in school-aged population, population shifts and 
61.21 	economic changes that the state has experienced in recent years and anticipates in future 
61.22 	years, and because in some instances local districts have not, and will not be able to 
61.23 	provide the required construction funds through local property taxes, the purpose of the 
61.24 	cooperative secondary facilities grant program is to provide an incentive to encourage 
61.25 	cooperation in making available to all secondary students those educational programs, 
61.26 	services and facilities that are most efficiently and effectively provided by a cooperative 
61.27 	effort of several school districts. The policy and purpose of sections  123A.442 to  
61.28 	123A.446 is to use the credit of the state, to a limited degree, to provide grants to 
61.29 	cooperating groups of districts to improve and expand the educational opportunities and 
61.30 	facilities available to their secondary students. 

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

62.2 	Sec. 3. Minnesota Statutes 2004, section 123A.442, is amended to read:
62.3 	123A.442 APPROVAL AUTHORITY; APPLICATION FORMS.
62.4 		Subdivision 1.Approval by commissioner. To the extent money is available, the 
62.5 	commissioner may approve projects from applications submitted under section  123A.443. 
62.6 	The grant money must be used only to acquire, construct, remodel or improve the building 
62.7 	or site of a cooperative secondary facility under contracts to be entered into within 15 
62.8 	months after the date on which each grant is awarded. 
62.9 		Subd. 2.Cooperation and combination. Districts that have not already 
62.10 	consolidated and receive a cooperative secondary facilities grant after May 1, 1991, shall:
62.11 	(1) submit a consolidation plan as set forth in under section  123A.36 123A.48 for 
62.12 	approval by the State Board of Education before December 31, 1999, or Department of 
62.13 	Education after December 30, 1999; and 
62.14 	(2) hold a referendum on the question of combination consolidation no later than 
62.15 	four years after a grant is awarded under subdivision 1.
62.16 	The districts are eligible for cooperation and combination consolidation revenue 
62.17 	under section  123A.39, subdivision 3 123A.485. 
62.18 		Subd. 3.Consolidated districts. A school district that has consolidated with 
62.19 	another school district since July 1, 1980, is eligible for a cooperative facilities grant.

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

62.21 	Sec. 4. Minnesota Statutes 2004, section 123A.443, is amended to read:
62.22 	123A.443 GRANT APPLICATION PROCESS.
62.23 		Subdivision 1.Qualification. Any group of districts or a consolidated district 
62.24 	that meets the criteria required under subdivision 2 may apply for an incentive grant for 
62.25 	construction of a new secondary facility or for remodeling and improving an existing 
62.26 	secondary facility. A grant for new construction must not exceed the lesser of $5,000,000
62.27 	$10,000,000 or 75 percent of the approved construction costs of a cooperative secondary
62.28 	education facility. A grant for remodeling and improving an existing facility must not 
62.29 	exceed $200,000 $1,000,000.
62.30 		Subd. 2.Review by commissioner. (a) A group of districts or a consolidated district 
62.31 	that submits an application for a grant must submit a proposal to the commissioner for 
62.32 	review and comment under section  123B.71. The commissioner shall prepare a review 
62.33 	and comment on the proposed facility by July 1 of an odd-numbered year, regardless 
63.1 	of the amount of the capital expenditure required to acquire, construct, remodel, or 
63.2 	improve the secondary facility. The commissioner shall not approve an application for an 
63.3 	incentive grant for any secondary facility unless the facility receives a favorable review 
63.4 	and comment under section  123B.71 and the following criteria are met: 
63.5 	(1) the applicant is a consolidated district or a minimum of two or more districts, 
63.6 	with kindergarten to grade 12 enrollments in each district of no more than 1,200 pupils, 
63.7 	enter that have entered into a joint powers agreement;
63.8 	(2) for a group of districts, a joint powers board representing all participating 
63.9 	districts is established under section  471.59 to govern the cooperative secondary facility; 
63.10 	(3) the planned secondary facility will result in the joint powers district meeting the 
63.11 	requirements of Minnesota Rules, parts 3500.2010 and 3500.2110;
63.12 	(4) at least 198 pupils would be served in grades 10 to 12, 264 pupils would be 
63.13 	served in grades 9 to 12, or 396 pupils would be served in grades 7 to 12;
63.14 	(5) (3) for a group of districts, no more than one superintendent is employed by the 
63.15 	joint powers board as a result of the cooperative secondary facility agreement;
63.16 	(6) (4) a statement of need is submitted, that may include reasons why the current 
63.17 	secondary facilities are inadequate, unsafe or inaccessible to the handicapped disabled;
63.18 	(7) (5) an educational plan is prepared, that includes input from both community and 
63.19 	professional staff;
63.20 	(8) (6) for a group of districts, a combined seniority list for all participating districts 
63.21 	is developed by the joint powers board;
63.22 	(9) (7) for a group of districts, an education program is developed that provides for 
63.23 	more learning opportunities and course offerings, including the offering of advanced 
63.24 	placement courses, for students than is currently available in any single member district;
63.25 	(10) (8) a plan is developed for providing instruction of any resident students in 
63.26 	other districts when distance to the secondary education facility makes attendance at the 
63.27 	facility unreasonably difficult or impractical; and
63.28 	(11) (9) for a secondary facility, the joint powers board established under clause (2) 
63.29 	discusses with technical colleges located in the area how vocational education space in 
63.30 	the cooperative secondary facility could be jointly used for secondary and postsecondary 
63.31 	purposes.
63.32 	(b) To the extent possible, the joint powers board is encouraged to provide for 
63.33 	severance pay or for early retirement incentives under section  122A.48, for any teacher 
63.34 	or administrator, as defined under section  122A.40, subdivision 1, who is placed on 
63.35 	unrequested leave as a result of the cooperative secondary facility agreement. 
64.1 	(c) For the purpose of paragraph (a), clause (8) (6), each district must be considered 
64.2 	to have started school each year on the same date.
64.3 	(d) The districts may develop a plan that provides for the location of social service, 
64.4 	health, and other programs serving pupils and community residents within the cooperative 
64.5 	secondary facility. The commissioner shall consider this plan when preparing a review 
64.6 	and comment on the proposed facility.
64.7 	(e) The districts must schedule and conduct a meeting on library services. The 
64.8 	school districts, in cooperation with the regional public library system and its appropriate 
64.9 	member libraries, must discuss the possibility of including jointly operated library services 
64.10 	at the cooperative secondary facility.
64.11 	(f) The board of a district that has reorganized under section  123A.37 or  123A.48
64.12 	and that is applying for a grant for remodeling or improving an existing facility may act in 
64.13 	the place of a joint powers board to meet the criteria of this subdivision. 
64.14 		Subd. 3.Reorganizing districts. A district that is a member of a joint powers 
64.15 	board established under subdivision 2 and that is planning to reorganize under section  
64.16 	123A.45,  123A.46, or  123A.48 must notify the joint powers board one year in advance of 
64.17 	the effective date of the reorganization. Notwithstanding section  471.59 or any other law 
64.18 	to the contrary, the board of a district that reorganizes under section  123A.45,  123A.46, or  
64.19 	123A.48 may appoint representatives to the joint powers board who will serve on the joint 
64.20 	powers board for two years after the effective date of the reorganization if authorized in 
64.21 	the agreement establishing the joint powers board to govern the cooperative secondary
64.22 	facility. These representatives shall have the same powers as representatives of any other 
64.23 	school district under the joint powers agreement. 
64.24 		Subd. 4.District procedures. A joint powers board of a secondary district 
64.25 	established under subdivision 2 or a school board of a reorganized district that intends 
64.26 	to apply for a grant must adopt a resolution stating the proposed costs of the project, 
64.27 	the purpose for which the costs are to be incurred, and an estimate of the dates when 
64.28 	the facilities for which the grant is requested will be contracted for and completed. 
64.29 	Applications for the state grants must be accompanied by (a) a copy of the resolution, (b) 
64.30 	a certificate by the clerk and treasurer of the joint powers board showing the current 
64.31 	outstanding indebtedness of each member district, and (c) a certificate by the county 
64.32 	auditor of each county in which a portion of the joint powers district lies showing the 
64.33 	information in the auditor's official records that is required to be used in computing the 
64.34 	debt limit of the district under section  475.53, subdivision 4. The clerk's and treasurer's 
64.35 	certificate must show, as to each outstanding bond issue of each member district, the 
64.36 	amount originally issued, the purpose for which issued, the date of issue, the amount 
65.1 	remaining unpaid as of the date of the resolution, and the interest rates and due dates 
65.2 	and amounts of principal thereon. Applications and necessary data must be in the 
65.3 	form prescribed by the commissioner and the rules of the State Board of Education 
65.4 	before December 31, 1999, and after December 30, 1999, in the form prescribed by the 
65.5 	commissioner. Applications must be received by the commissioner by September 1 of an 
65.6 	odd-numbered year. When an application is received, the commissioner shall obtain from 
65.7 	the commissioner of revenue, and from the Public Utilities Commission when required, 
65.8 	the information in their official records that is required to be used in computing the debt 
65.9 	limit of the joint powers district under section  475.53, subdivision 4. 
65.10 		Subd. 5.Award of grants. By November 1 of the odd-numbered year, the 
65.11 	commissioner shall examine and consider all applications for grants, and if any district is 
65.12 	found not qualified, the commissioner shall promptly notify that board.
65.13 	A grant award is subject to verification by the district as specified in subdivision 
65.14 	8. A grant award for a new facility must not be made until the site of the secondary
65.15 	facility has been determined. A grant award to remodel or improve an existing facility 
65.16 	must not be made until the districts have reorganized. If the total amount of the approved 
65.17 	applications exceeds the amount that is or can be made available, the commissioner 
65.18 	shall allot the available amount equally between the approved applicant districts. The 
65.19 	commissioner shall promptly certify to each qualified district the amount, if any, of the 
65.20 	grant awarded to it.
65.21 		Subd. 6.Collocation grant. A group of districts that receives a grant for a new 
65.22 	facility under subdivision 4 is also eligible to receive an additional grant in the amount of 
65.23 	$1,000,000. To receive the additional grant, the group of districts must develop a plan 
65.24 	under subdivision 2, paragraph (d), that provides for the location of a significant number 
65.25 	of noneducational student and community service programs within the cooperative 
65.26 	secondary facility.
65.27 		Subd. 7.Referendum; bond issue. Within 180 days after being awarded a grant 
65.28 	for a new facility under subdivision 5, the joint powers board must submit the question 
65.29 	of authorizing the borrowing of funds for the secondary facility to the voters of the joint 
65.30 	powers district at a special election, which may be held in conjunction with the annual 
65.31 	election of the school board members of the member districts. The question submitted 
65.32 	must state the total amount of funding needed from all sources. A majority of those voting 
65.33 	in the affirmative on the question is sufficient to authorize the joint powers board to accept 
65.34 	the grant and to issue the bonds on public sale in accordance with according to chapter 
65.35 	475. The clerk of the joint powers board must certify the vote of the bond election to the 
65.36 	commissioner. If the question is approved by the voters, the commissioner shall notify the 
66.1 	approved applicant districts that the grant amount certified under subdivision 5 is available 
66.2 	and appropriated for payment under this subdivision. If a majority of those voting on the 
66.3 	question do not vote in the affirmative, the grant must be canceled.
66.4 		Subd. 8.Contract. Each grant must be evidenced by a contract between the board 
66.5 	and the state acting through the commissioner. The contract obligates the state to pay to 
66.6 	the board an amount computed according to subdivision 5, and according to a schedule, 
66.7 	and terms and conditions acceptable to the commissioner of finance.
66.8 		Subd. 9.Consolidation. A group of districts that operates a cooperative secondary
66.9 	facility that was acquired, constructed, remodeled, or improved under this section and 
66.10 	implements consolidation proceedings according to section  123A.48, may propose a 
66.11 	temporary school board structure in the petition or resolution required under section  
66.12 	123A.48, subdivision 2. The districts may propose the number of existing school board 
66.13 	members of each district to become members of the board of the consolidated district 
66.14 	and a method to gradually reduce the membership to six or seven. The proposal must 
66.15 	be approved, disapproved, or modified by the state board of education commissioner. 
66.16 	The election requirements of section  123A.48, subdivision 20, do not apply to a 
66.17 	proposal approved by the state board. Elections conducted after the effective date of the 
66.18 	consolidation are subject to the Minnesota Election Law. 

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

66.20 	Sec. 5. Minnesota Statutes 2004, section 123B.10, subdivision 1, is amended to read:
66.21 		Subdivision 1.Budgets. By October 1, Every board must publish revenue and 
66.22 	expenditure budgets for the current year and the actual revenues, expenditures, fund 
66.23 	balances for the prior year and projected fund balances for the current year in a form 
66.24 	prescribed by the commissioner within one week of the acceptance of the final audit by 
66.25 	the board, or November 30, whichever is earlier. The forms prescribed must be designed 
66.26 	so that year to year comparisons of revenue, expenditures and fund balances can be made. 
66.27 	These budgets, reports of revenue, expenditures and fund balances must be published in 
66.28 	a qualified newspaper of general circulation in the district or on the district's official 
66.29 	Web site. If published on the district's official Web site, the district must also publish an 
66.30 	announcement in a qualified newspaper of general circulation in the district that includes 
66.31 	the Internet address where the information has been posted.

66.32 	Sec. 6. Minnesota Statutes 2004, section 123B.77, is amended by adding a subdivision 
66.33 	to read:
67.1 		Subd. 1a.School district consolidated financial statement. The commissioner, 
67.2 	in consultation with the advisory committee on financial management, accounting, and 
67.3 	reporting, shall develop and maintain a school district consolidated financial statement 
67.4 	format that converts uniform financial accounting and reporting standards data under 
67.5 	subdivision 1 into a more understandable format.

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

67.7 	Sec. 7. Minnesota Statutes 2004, section 127A.41, subdivision 2, is amended to read:
67.8 		Subd. 2.Errors in distribution. On determining that the amount of state aid 
67.9 	distributed to a school district is in error, the commissioner is authorized to adjust the 
67.10 	amount of aid consistent with this subdivision. On determining that the amount of aid is 
67.11 	in excess of the school district's entitlement, the commissioner is authorized to recover 
67.12 	the amount of the excess by any appropriate means. Notwithstanding the fiscal years 
67.13 	designated by the appropriation, the excess may be recovered by reducing future aid 
67.14 	payments to the district. Notwithstanding any law to the contrary, if the aid reduced is not 
67.15 	of the same type as that overpaid, the district must adjust all necessary financial accounts 
67.16 	to properly reflect all revenues earned in accordance with the uniform financial accounting 
67.17 	and reporting standards pursuant to sections  123B.75 to  123B.83. Notwithstanding the 
67.18 	fiscal years designated by the appropriation, on determining that the amount of an aid paid 
67.19 	is less than the school district's entitlement, the commissioner is authorized to increase 
67.20 	such aid from the current appropriation. If the aid program has been discontinued and has 
67.21 	no appropriation, the appropriation for general education shall be used for recovery or 
67.22 	payment of the aid decrease or increase. Any excess of aid recovery over aid payment 
67.23 	shall be canceled to the state general fund.

67.24 	Sec. 8. Minnesota Statutes 2004, section 181.101, is amended to read:
67.25 	181.101 WAGES; HOW OFTEN PAID.
67.26 	Every employer must pay all wages earned by an employee at least once every 31 
67.27 	days on a regular pay day designated in advance by the employer regardless of whether 
67.28 	the employee requests payment at longer intervals. Unless paid earlier, the wages earned 
67.29 	during the first half of the first 31-day pay period become due on the first regular payday 
67.30 	following the first day of work. If wages earned are not paid, the commissioner of labor 
67.31 	and industry or the commissioner's representative may demand payment on behalf of an 
67.32 	employee. If payment is not made within ten days of demand, the commissioner may 
67.33 	charge and collect the wages earned and a penalty in the amount of the employee's average 
68.1 	daily earnings at the rate agreed upon in the contract of employment, not exceeding 15 
68.2 	days in all, for each day beyond the ten-day limit following the demand. Money collected 
68.3 	by the commissioner must be paid to the employee concerned. This section does not 
68.4 	prevent an employee from prosecuting a claim for wages. This section does not prevent 
68.5 	a school district or,  other public school entity, or other school, as defined under section 
68.6 	120A.22,  from paying any wages earned by its employees during a school year on regular 
68.7 	pay days in the manner provided by an applicable contract or collective bargaining 
68.8 	agreement, or a personnel policy adopted by the governing board. For purposes of this 
68.9 	section, "employee" includes a person who performs agricultural labor as defined in 
68.10 	section  181.85, subdivision 2. For purposes of this section, wages are earned on the 
68.11 	day an employee works. 

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

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

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

68.22 	ARTICLE 5
68.23 	STATE AGENCIES

68.24 	Section 1. Minnesota Statutes 2004, section 125A.65, subdivision 3, is amended to 
68.25 	read:
68.26 		Subd. 3.Educational program; tuition. (a) When it is determined pursuant to 
68.27 	section  125A.69, subdivision 1 or 2, that the child is entitled to attend either school, 
68.28 	the board of the Minnesota State Academies must provide the appropriate educational 
68.29 	program for the child. 
68.30 	(b) For fiscal year 2006, the board of the Minnesota State Academies must make a 
68.31 	tuition charge to the child's district of residence for the cost of providing the program. 
68.32 	The amount of tuition charged must not exceed the sum of (1) the general education 
69.1 	revenue formula allowance times the pupil unit weighting factor pursuant to section  
69.2 	126C.05 for that child, for the amount of time the child is in the program, plus (2), if 
69.3 	the child was enrolled at the Minnesota State Academies on October 1 of the previous 
69.4 	fiscal year, the compensatory education revenue attributable to that child under section 
69.5 	126C.10, subdivision 3. The district of the child's residence must pay the tuition and 
69.6 	may claim general education aid for the child. Tuition received by the board of the 
69.7 	Minnesota State Academies, except for tuition for compensatory education revenue under 
69.8 	this paragraph and tuition received under subdivision 4, must be deposited in the state 
69.9 	treasury as provided in subdivision 8. 
69.10 	(c) For fiscal year 2007 and later, the district of the child's residence shall 
69.11 	claim general education revenue for the child, except as provided in this paragraph. 
69.12 	Notwithstanding section 127A.47, subdivision 1, an amount equal to the general education 
69.13 	revenue formula allowance times the pupil unit weighting factor pursuant to section 
69.14 	126C.05 for that child for the amount of time the child is in the program, as adjusted 
69.15 	according to subdivision 8, paragraph (d), must be paid to the Minnesota State Academies. 
69.16 	Notwithstanding section 126C.15, subdivision 2, paragraph (d), the compensatory 
69.17 	education revenue under section 126C.10, subdivision 3, attributable to children enrolled at 
69.18 	the Minnesota State Academies on October 1 of the previous fiscal year must be paid to the 
69.19 	Minnesota State Academies. General education aid paid to the Minnesota State Academies 
69.20 	under this paragraph must be credited to their general operation account. Other general 
69.21 	education aid attributable to the child must be paid to the district of the child's residence.

69.22 	Sec. 2. Minnesota Statutes 2004, section 125A.65, subdivision 4, is amended to read:
69.23 		Subd. 4.Unreimbursed costs. (a) For fiscal year 2006, in addition to the tuition 
69.24 	charge allowed in subdivision 3, the academies may charge the child's district of residence 
69.25 	for the academy's unreimbursed cost of providing an instructional aide assigned to that 
69.26 	child, after deducting the special education aid under section 125A.76, attributable to the 
69.27 	child, if that aide is required by the child's individual education plan. Tuition received 
69.28 	under this paragraph must be used by the academies to provide the required service.
69.29 	(b) For fiscal year 2007 and later, the special education aid paid to the academies 
69.30 	shall be increased by the academy's unreimbursed cost of providing an instructional 
69.31 	aide assigned to a child, after deducting the special education aid under section 125A.76 
69.32 	attributable to the child, if that aide is required by the child's individual education plan. 
69.33 	Aid received under this paragraph must be used by the academies to provide the required 
69.34 	service.
70.1 	(c) For fiscal year 2007 and later, the special education aid paid to the district of 
70.2 	the child's residence shall be reduced by the amount paid to the academies for district 
70.3 	residents under paragraph (b).
70.4 	(d) Notwithstanding section 127A.45, subdivision 3, beginning in fiscal year 2008, 
70.5 	the commissioner shall make an estimated final adjustment payment to the Minnesota 
70.6 	State Academies for general education aid and special education aid for the prior fiscal 
70.7 	year by August 15.

70.8 	Sec. 3. Minnesota Statutes 2004, section 125A.65, subdivision 6, is amended to read:
70.9 		Subd. 6.Tuition reduction. Notwithstanding the provisions of subdivisions 3 and 
70.10 	5, the board of the Minnesota State Academies may agree to make a tuition charge, or 
70.11 	receive an aid adjustment, as applicable, for less than the amount specified in subdivision 
70.12 	3 for pupils attending the applicable school who are residents of the district where the 
70.13 	institution is located and who do not board at the institution, if that district agrees to make 
70.14 	a tuition charge to the board of the Minnesota State Academies for less than the amount 
70.15 	specified in subdivision 5 for providing appropriate educational programs to pupils 
70.16 	attending the applicable school.

70.17 	Sec. 4. Minnesota Statutes 2004, section 125A.65, subdivision 8, is amended to read:
70.18 		Subd. 8.Student count; tuition. (a) On May 1, 1996, and each year thereafter, 
70.19 	the board of the Minnesota State Academies shall count the actual number of Minnesota 
70.20 	resident special education eligible students enrolled and receiving education services at the 
70.21 	Minnesota State Academy for the Deaf and the Minnesota State Academy for the Blind. 
70.22 	(b) For fiscal year 2006, the board of the Minnesota State Academies shall deposit in 
70.23 	the state treasury an amount equal to all tuition received for the basic revenue according to 
70.24 	subdivision 3, less the amount calculated in paragraph (b) (c).
70.25 	(b) (c) For fiscal year 2006, the Minnesota State Academies shall credit to their 
70.26 	general operation account an amount equal to the tuition received which represents tuition 
70.27 	earned for the total number of students over 175 based on:
70.28 	(1) the total number of enrolled students on May 1 less 175; times
70.29 	(2) the ratio of the number of students in that grade category to the total number of 
70.30 	students on May 1; times
70.31 	(3) the general education revenue formula allowance; times
70.32 	(4) the pupil unit weighting factor pursuant to section  126C.05. 
70.33 	(d) For fiscal year 2007 and later, the Minnesota State Academies shall report to 
70.34 	the department the number of students by grade level counted according to paragraph (a). 
71.1 	The amount paid to the Minnesota State Academies under subdivision 3, paragraph (c), 
71.2 	must be reduced by an amount equal to:
71.3 	(1) the ratio of 175 to the total number of students on May 1; times
71.4 	(2) the total basic revenue determined according to subdivision 3, paragraph (c).

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

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

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

71.21 	ARTICLE 6
71.22 	TECHNICAL AND CONFORMING AMENDMENTS

71.23 	Section 1. Minnesota Statutes 2005 Supplement, section 120B.11, subdivision 2, is 
71.24 	amended to read:
71.25 		Subd. 2.Adopting policies. (a) A school board shall have in place an adopted 
71.26 	written policy that includes the following:
71.27 	(1) district goals for instruction including the use of best practices, district and 
71.28 	school curriculum, and achievement for all student subgroups;
71.29 	(2) a process for evaluating each student's progress toward meeting academic 
71.30 	standards and identifying the strengths and weaknesses of instruction and curriculum 
71.31 	affecting students' progress;
71.32 	(3) a system for periodically reviewing and evaluating all instruction and curriculum;
72.1 	(4) a plan for improving instruction, curriculum, and student achievement; and
72.2 	(5) an education effectiveness plan aligned with section 122A.625 that integrates 
72.3 	instruction, curriculum, and technology.

72.4 	Sec. 2. Minnesota Statutes 2004, section 121A.15, subdivision 10, is amended to read:
72.5 		Subd. 10.Requirements for immunization statements. (a) A statement required 
72.6 	to be submitted under subdivisions 1, 2, and 4 to document evidence of immunization 
72.7 	shall include month, day, and year for immunizations administered after January 1, 1990.
72.8 	(a) For persons enrolled in grades 7 and 12 during the 1996-1997 school term, the 
72.9 	statement must indicate that the person has received a dose of tetanus and diphtheria 
72.10 	toxoid no earlier than 11 years of age.
72.11 	(b) Except as specified in paragraph (e), for persons enrolled in grades 7, 8, and 12 
72.12 	during the 1997-1998 school term, the statement must indicate that the person has received 
72.13 	a dose of tetanus and diphtheria toxoid no earlier than 11 years of age.
72.14 	(c) Except as specified in paragraph (e), for persons enrolled in grades 7 through 
72.15 	12 during the 1998-1999 school term and for each year thereafter, the statement must 
72.16 	indicate that the person has received a dose of tetanus and diphtheria toxoid no earlier 
72.17 	than 11 years of age.
72.18 	(d) For persons enrolled in grades 7 through 12 during the 1996-1997 school year 
72.19 	and for each year thereafter, the statement must indicate that the person has received at 
72.20 	least two doses of vaccine against measles, mumps, and rubella, given alone or separately 
72.21 	and given not less than one month apart.
72.22 	(e)  (b) A person who has received at least three doses of tetanus and diphtheria 
72.23 	toxoids, with the most recent dose given after age six and before age 11, is not required to 
72.24 	have additional immunization against diphtheria and tetanus until ten years have elapsed 
72.25 	from the person's most recent dose of tetanus and diphtheria toxoid.
72.26 	(f)  (c) The requirement for hepatitis B vaccination shall apply to persons enrolling in 
72.27 	kindergarten beginning with the 2000-2001 school term.
72.28 	(g) (d) The requirement for hepatitis B vaccination shall apply to persons enrolling 
72.29 	in grade 7 beginning with the 2001-2002 school term.

72.30 	Sec. 3. Minnesota Statutes 2005 Supplement, section 123B.04, subdivision 2, is 
72.31 	amended to read:
72.32 		Subd. 2.Agreement. (a) Upon the request of 60 percent of the licensed employees 
72.33 	of a site or a school site decision-making team, the school board shall enter into 
72.34 	discussions to reach an agreement concerning the governance, management, or control of 
73.1 	the school. A school site decision-making team may include the school principal, teachers 
73.2 	in the school or their designee, other employees in the school, representatives of pupils 
73.3 	in the school, or other members in the community. A school site decision-making team 
73.4 	must include at least one parent of a pupil in the school. For purposes of formation of a 
73.5 	new site, a school site decision-making team may be a team of teachers that is recognized 
73.6 	by the board as a site. The school site decision-making team shall include the school 
73.7 	principal or other person having general control and supervision of the school. The site 
73.8 	decision-making team must reflect the diversity of the education site. At least one-half 
73.9 	of the members shall be employees of the district, unless an employee is the parent of a 
73.10 	student enrolled in the school site, in which case the employee may elect to serve as a 
73.11 	parent member of the site team.
73.12 	(b) School site decision-making agreements must delegate powers, duties, and 
73.13 	broad management responsibilities to site teams and involve staff members, students as 
73.14 	appropriate, and parents in decision making.
73.15 	(c) An agreement shall include a statement of powers, duties, responsibilities, and 
73.16 	authority to be delegated to and within the site.
73.17 	(d) An agreement may include:
73.18 	(1) an achievement contract according to subdivision 4;
73.19 	(2) a mechanism to allow principals, a site leadership team, or other persons having 
73.20 	general control and supervision of the school, to make decisions regarding how financial 
73.21 	and personnel resources are best allocated at the site and from whom goods or services 
73.22 	are purchased;
73.23 	(3) a mechanism to implement parental involvement programs under section 
73.24 	124D.895 and to provide for effective parental communication and feedback on this 
73.25 	involvement at the site level;
73.26 	(4) a provision that would allow the team to determine who is hired into licensed 
73.27 	and nonlicensed positions;
73.28 	(5) a provision that would allow teachers to choose the principal or other person 
73.29 	having general control;
73.30 	(6) an amount of revenue allocated to the site under subdivision 3; and
73.31 	(7) any other powers and duties determined appropriate by the board.
73.32 	The school board of the district remains the legal employer under clauses (4) and (5).
73.33 	(e) Any powers or duties not delegated to the school site management team in the 
73.34 	school site management agreement shall remain with the school board.
73.35 	(f) Approved agreements shall be filed with the commissioner. If a school board 
73.36 	denies a request or the school site and school board fail to reach an agreement to enter 
74.1 	into a school site management agreement, the school board shall provide a copy of the 
74.2 	request and the reasons for its denial to the commissioner.
74.3 	(g) A site decision-making grant program is established, consistent with this 
74.4 	subdivision, to allow sites to implement an agreement that at least:
74.5 	(1) notwithstanding subdivision 3, allocates to the site all revenue that is attributable 
74.6 	to the students at that site;
74.7 	(2) includes a provision, consistent with current law and the collective bargaining 
74.8 	agreement in effect, that allows the site team to decide who is selected from within the 
74.9 	district for licensed and nonlicensed positions at the site and to make staff assignments 
74.10 	in the site; and
74.11 	(3) includes a completed performance agreement under subdivision 4.
74.12 	The commissioner shall establish the form and manner of the application for a grant 
74.13 	and annually, at the end of each fiscal year, report to the house of representatives and 
74.14 	senate committees having jurisdiction over education on the progress of the program.

74.15 	Sec. 4. Minnesota Statutes 2004, section 125A.62, subdivision 1, is amended to read:
74.16 		Subdivision 1.Governance. The board of the Minnesota State Academies shall 
74.17 	govern the State Academies Academy for the Deaf and the State Academy for the Blind. 
74.18 	The board must promote academic standards based on high expectation and an assessment 
74.19 	system to measure academic performance toward the achievement of those standards. The 
74.20 	board must focus on the academies' needs as a whole and not prefer one school over the 
74.21 	other. The board of the Minnesota State Academies shall consist of nine persons. The 
74.22 	members of the board shall be appointed by the governor with the advice and consent of 
74.23 	the senate. One member must be from the seven-county metropolitan area, one member 
74.24 	must be from greater Minnesota, and one member may be appointed at-large. The board 
74.25 	must be composed of:
74.26 	(1) one present or former superintendent of an independent school district;
74.27 	(2) one present or former special education director;
74.28 	(3) the commissioner of education or the commissioner's designee;
74.29 	(4) one member of the blind community;
74.30 	(5) one member of the deaf community;
74.31 	(6) two members of the general public with business, administrative, or financial 
74.32 	expertise;
74.33 	(7) one nonvoting, unpaid ex officio member appointed by the site council for the 
74.34 	State Academy for the Deaf; and
75.1 	(8) one nonvoting, unpaid ex officio member appointed by the site council for the 
75.2 	State Academy for the Blind.

75.3 	Sec. 5. Minnesota Statutes 2005 Supplement, section 126C.10, subdivision 24, is 
75.4 	amended to read:
75.5 		Subd. 24.Equity revenue. (a) A school district qualifies for equity revenue if:
75.6 	(1) the school district's adjusted marginal cost pupil unit amount of basic revenue, 
75.7 	supplemental revenue, transition revenue, and referendum revenue is less than the value of 
75.8 	the school district at or immediately above the 95th percentile of school districts in its 
75.9 	equity region for those revenue categories; and
75.10 	(2) the school district's administrative offices are not located in a city of the first 
75.11 	class on July 1, 1999.
75.12 	(b) Equity revenue for a qualifying district that receives referendum revenue under 
75.13 	section 126C.17, subdivision 4, equals the product of (1) the district's adjusted marginal 
75.14 	cost pupil units for that year; times (2) the sum of (i) $13, plus (ii) $75, times the school 
75.15 	district's equity index computed under subdivision 27.
75.16 	(c) Equity revenue for a qualifying district that does not receive referendum revenue 
75.17 	under section 126C.17, subdivision 4, equals the product of the district's adjusted marginal 
75.18 	cost pupil units for that year times $13.
75.19 	(d) A school district's equity revenue is increased by the greater of zero or an amount 
75.20 	equal to the district's resident marginal cost pupil units times the difference between ten 
75.21 	percent of the statewide average amount of referendum revenue per resident marginal cost 
75.22 	pupil unit for that year and the district's referendum revenue per resident marginal cost 
75.23 	pupil unit. A school district's revenue under this paragraph must not exceed $100,000 for 
75.24 	that year.
75.25 	(e) A school district's equity revenue for a school district located in the metro equity 
75.26 	region equals the amount computed in paragraphs (b), (c), and (d) multiplied by 1.25.
75.27 	(f) For fiscal year 2007 and later, notwithstanding paragraph (a), clause (2), a school 
75.28 	district that has per pupil referendum revenue below the 95th percentile qualifies for 
75.29 	additional equity revenue equal to $46 times its adjusted marginal cost pupil unit.
75.30 	(g) A district that does not qualify for revenue under paragraph (f) qualifies for 
75.31 	equity revenue equal to one-half of the per pupil allowance in paragraph (f) times its 
75.32 	adjusted marginal cost pupil units.

75.33 	Sec. 6. Minnesota Statutes 2005 Supplement, section 626.556, subdivision 2, is 
75.34 	amended to read:
76.1 		Subd. 2.Definitions. As used in this section, the following terms have the meanings 
76.2 	given them unless the specific content indicates otherwise:
76.3 	(a) "Family assessment" means a comprehensive assessment of child safety, risk 
76.4 	of subsequent child maltreatment, and family strengths and needs that is applied to a 
76.5 	child maltreatment report that does not allege substantial child endangerment. Family 
76.6 	assessment does not include a determination as to whether child maltreatment occurred 
76.7 	but does determine the need for services to address the safety of family members and the 
76.8 	risk of subsequent maltreatment.
76.9 	(b) "Investigation" means fact gathering related to the current safety of a child 
76.10 	and the risk of subsequent maltreatment that determines whether child maltreatment 
76.11 	occurred and whether child protective services are needed. An investigation must be used 
76.12 	when reports involve substantial child endangerment, and for reports of maltreatment in 
76.13 	facilities required to be licensed under chapter 245A or 245B; under sections 144.50 to 
76.14 	144.58 and 241.021; in a school as defined in sections 120A.05, subdivisions 9, 11, and 
76.15 	13, and 124D.10; or in a nonlicensed personal care provider association as defined in 
76.16 	sections 256B.04, subdivision 16, and 256B.0625, subdivision 19a.
76.17 	(c) "Substantial child endangerment" means a person responsible for a child's care, a 
76.18 	person who has a significant relationship to the child as defined in section 609.341, or a 
76.19 	person in a position of authority as defined in section 609.341, who by act or omission 
76.20 	commits or attempts to commit an act against a child under their care that constitutes 
76.21 	any of the following:
76.22 	(1) egregious harm as defined in section 260C.007, subdivision 14;
76.23 	(2) sexual abuse as defined in paragraph (d);
76.24 	(3) abandonment under section 260C.301, subdivision 2;
76.25 	(4) neglect as defined in paragraph (f), clause (2), that substantially endangers the 
76.26 	child's physical or mental health, including a growth delay, which may be referred to as 
76.27 	failure to thrive, that has been diagnosed by a physician and is due to parental neglect;
76.28 	(5) murder in the first, second, or third degree under section 609.185, 609.19, or 
76.29 	609.195;
76.30 	(6) manslaughter in the first or second degree under section 609.20 or 609.205;
76.31 	(7) assault in the first, second, or third degree under section 609.221, 609.222, or 
76.32 	609.223;
76.33 	(8) solicitation, inducement, and promotion of prostitution under section 609.322;
76.34 	(9) criminal sexual conduct under sections 609.342 to 609.3451;
76.35 	(10) solicitation of children to engage in sexual conduct under section 609.352;
77.1 	(11) malicious punishment or neglect or endangerment of a child under section 
77.2 	609.377 or 609.378;
77.3 	(12) use of a minor in sexual performance under section 617.246; or
77.4 	(13) parental behavior, status, or condition which mandates that the county attorney 
77.5 	file a termination of parental rights petition under section 260C.301, subdivision 3, 
77.6 	paragraph (a).
77.7 	(d) "Sexual abuse" means the subjection of a child by a person responsible for the 
77.8 	child's care, by a person who has a significant relationship to the child, as defined in 
77.9 	section 609.341, or by a person in a position of authority, as defined in section 609.341, 
77.10 	subdivision 10, to any act which constitutes a violation of section 609.342 (criminal sexual 
77.11 	conduct in the first degree), 609.343 (criminal sexual conduct in the second degree), 
77.12 	609.344 (criminal sexual conduct in the third degree), 609.345 (criminal sexual conduct 
77.13 	in the fourth degree), or 609.3451 (criminal sexual conduct in the fifth degree). Sexual 
77.14 	abuse also includes any act which involves a minor which constitutes a violation of 
77.15 	prostitution offenses under sections 609.321 to 609.324 or 617.246. Sexual abuse includes 
77.16 	threatened sexual abuse.
77.17 	(e) "Person responsible for the child's care" means (1) an individual functioning 
77.18 	within the family unit and having responsibilities for the care of the child such as a 
77.19 	parent, guardian, or other person having similar care responsibilities, or (2) an individual 
77.20 	functioning outside the family unit and having responsibilities for the care of the child 
77.21 	such as a teacher, school administrator, other school employees or agents, or other lawful 
77.22 	custodian of a child having either full-time or short-term care responsibilities including, 
77.23 	but not limited to, day care, babysitting whether paid or unpaid, counseling, teaching, 
77.24 	and coaching.
77.25 	(f) "Neglect" means:
77.26 	(1) failure by a person responsible for a child's care to supply a child with necessary 
77.27 	food, clothing, shelter, health, medical, or other care required for the child's physical or 
77.28 	mental health when reasonably able to do so;
77.29 	(2) failure to protect a child from conditions or actions that seriously endanger the 
77.30 	child's physical or mental health when reasonably able to do so, including a growth delay, 
77.31 	which may be referred to as a failure to thrive, that has been diagnosed by a physician and 
77.32 	is due to parental neglect;
77.33 	(3) failure to provide for necessary supervision or child care arrangements 
77.34 	appropriate for a child after considering factors as the child's age, mental ability, physical 
77.35 	condition, length of absence, or environment, when the child is unable to care for the 
77.36 	child's own basic needs or safety, or the basic needs or safety of another child in their care;
78.1 	(4) failure to ensure that the child is educated as defined in sections 120A.22 and 
78.2 	260C.163, subdivision 11, which does not include a parent's refusal to provide the parent's 
78.3 	child with sympathomimetic medications, consistent with section 125A.091, subdivision 5;
78.4 	(5) nothing in this section shall be construed to mean that a child is neglected solely 
78.5 	because the child's parent, guardian, or other person responsible for the child's care in 
78.6 	good faith selects and depends upon spiritual means or prayer for treatment or care of 
78.7 	disease or remedial care of the child in lieu of medical care; except that a parent, guardian, 
78.8 	or caretaker, or a person mandated to report pursuant to subdivision 3, has a duty to report 
78.9 	if a lack of medical care may cause serious danger to the child's health. This section does 
78.10 	not impose upon persons, not otherwise legally responsible for providing a child with 
78.11 	necessary food, clothing, shelter, education, or medical care, a duty to provide that care;
78.12 	(6) prenatal exposure to a controlled substance, as defined in section 253B.02, 
78.13 	subdivision 2, used by the mother for a nonmedical purpose, as evidenced by withdrawal 
78.14 	symptoms in the child at birth, results of a toxicology test performed on the mother at 
78.15 	delivery or the child at birth, or medical effects or developmental delays during the child's 
78.16 	first year of life that medically indicate prenatal exposure to a controlled substance;
78.17 	(7) "medical neglect" as defined in section 260C.007, subdivision 6, clause (5);
78.18 	(8) chronic and severe use of alcohol or a controlled substance by a parent or 
78.19 	person responsible for the care of the child that adversely affects the child's basic needs 
78.20 	and safety; or
78.21 	(9) emotional harm from a pattern of behavior which contributes to impaired 
78.22 	emotional functioning of the child which may be demonstrated by a substantial and 
78.23 	observable effect in the child's behavior, emotional response, or cognition that is not 
78.24 	within the normal range for the child's age and stage of development, with due regard to 
78.25 	the child's culture.
78.26 	(g) "Physical abuse" means any physical injury, mental injury, or threatened injury, 
78.27 	inflicted by a person responsible for the child's care on a child other than by accidental 
78.28 	means, or any physical or mental injury that cannot reasonably be explained by the child's 
78.29 	history of injuries, or any aversive or deprivation procedures, or regulated interventions, 
78.30 	that have not been authorized under section 121A.67 or 245.825. Abuse does not include 
78.31 	reasonable and moderate physical discipline of a child administered by a parent or legal 
78.32 	guardian which does not result in an injury. Abuse does not include the use of reasonable 
78.33 	force by a teacher, principal, or school employee as allowed by section 121A.582. Actions 
78.34 	which are not reasonable and moderate include, but are not limited to, any of the following 
78.35 	that are done in anger or without regard to the safety of the child:
78.36 	(1) throwing, kicking, burning, biting, or cutting a child;
79.1 	(2) striking a child with a closed fist;
79.2 	(3) shaking a child under age three;
79.3 	(4) striking or other actions which result in any nonaccidental injury to a child 
79.4 	under 18 months of age;
79.5 	(5) unreasonable interference with a child's breathing;
79.6 	(6) threatening a child with a weapon, as defined in section 609.02, subdivision 6;
79.7 	(7) striking a child under age one on the face or head;
79.8 	(8) purposely giving a child poison, alcohol, or dangerous, harmful, or controlled 
79.9 	substances which were not prescribed for the child by a practitioner, in order to control 
79.10 	or punish the child; or other substances that substantially affect the child's behavior, 
79.11 	motor coordination, or judgment or that results in sickness or internal injury, or subjects 
79.12 	the child to medical procedures that would be unnecessary if the child were not exposed 
79.13 	to the substances;
79.14 	(9) unreasonable physical confinement or restraint not permitted under section 
79.15 	609.379, including but not limited to tying, caging, or chaining; or
79.16 	(10) in a school facility or school zone, an act by a person responsible for the child's 
79.17 	care that is a violation under section 121A.58.
79.18 	(h) "Report" means any report received by the local welfare agency, police 
79.19 	department, county sheriff, or agency responsible for assessing or investigating 
79.20 	maltreatment pursuant to this section.
79.21 	(i) "Facility" means:
79.22 	(1) a licensed or unlicensed day care facility, residential facility, agency, hospital, 
79.23 	sanitarium, or other facility or institution required to be licensed under sections 144.50 to 
79.24 	144.58, 241.021, or 245A.01 to 245A.16, or chapter 245B; or
79.25 	(2) a school as defined in sections 120A.05, subdivisions 9, 11, and 13; and 
79.26 	124D.10; or 
79.27 	(3) a nonlicensed personal care provider organization as defined in sections 256B.04, 
79.28 	subdivision 16, and 256B.0625, subdivision 19a.
79.29 	(j) "Operator" means an operator or agency as defined in section 245A.02.
79.30 	(k) "Commissioner" means the commissioner of human services.
79.31 	(l) "Practice of social services," for the purposes of subdivision 3, includes but is 
79.32 	not limited to employee assistance counseling and the provision of guardian ad litem and 
79.33 	parenting time expeditor services.
79.34 	(m) "Mental injury" means an injury to the psychological capacity or emotional 
79.35 	stability of a child as evidenced by an observable or substantial impairment in the child's 
80.1 	ability to function within a normal range of performance and behavior with due regard to 
80.2 	the child's culture.
80.3 	(n) "Threatened injury" means a statement, overt act, condition, or status that 
80.4 	represents a substantial risk of physical or sexual abuse or mental injury. Threatened 
80.5 	injury includes, but is not limited to, exposing a child to a person responsible for the 
80.6 	child's care, as defined in paragraph (e), clause (1), who has:
80.7 	(1) subjected a child to, or failed to protect a child from, an overt act or condition 
80.8 	that constitutes egregious harm, as defined in section 260C.007, subdivision 14, or a 
80.9 	similar law of another jurisdiction;
80.10 	(2) been found to be palpably unfit under section 260C.301, paragraph (b), clause 
80.11 	(4), or a similar law of another jurisdiction;
80.12 	(3) committed an act that has resulted in an involuntary termination of parental rights 
80.13 	under section 260C.301, or a similar law of another jurisdiction; or
80.14 	(4) committed an act that has resulted in the involuntary transfer of permanent legal 
80.15 	and physical custody of a child to a relative under section 260C.201, subdivision 11, 
80.16 	paragraph (d), clause (1), or a similar law of another jurisdiction.
80.17 	(o) Persons who conduct assessments or investigations under this section shall take 
80.18 	into account accepted child-rearing practices of the culture in which a child participates 
80.19 	and accepted teacher discipline practices, which are not injurious to the child's health, 
80.20 	welfare, and safety.

80.21 	ARTICLE 7
80.22 	EARLY CHILDHOOD PROVISIONS

80.23 	Section 1. Minnesota Statutes 2004, section 119A.50, subdivision 1, is amended to read:
80.24 		Subdivision 1.Department of Education. The Department of Education is the 
80.25 	state agency responsible for administering the Head Start program. The commissioner 
80.26 	of education may make grantsshall allocate funds according to the formula in section 
80.27 	119A.52 to public or private nonprofit agencies for the purpose of providing supplemental 
80.28 	funds for the federal Head Start program.

80.29 	Sec. 2. Minnesota Statutes 2004, section 119A.52, is amended to read:
80.30 	119A.52 DISTRIBUTION OF APPROPRIATION AND PROGRAM 
80.31 	COORDINATION.
80.32 	The commissioner of education must distribute money appropriated for that purpose 
80.33 	to federally designated Head Start program granteesprograms to expand services and to 
80.34 	serve additional low-income children. Money must be allocated to each project Head Start 
81.1 	grantee in existence on the effective date of Laws 1989, chapter 282. Migrant and Indian 
81.2 	reservation granteesprograms must be initially allocated money based on the grantees'
81.3 	programs' share of federal funds. The remaining money must be initially allocated to the 
81.4 	remaining local agencies based equally on the agencies' share of federal funds and on the 
81.5 	proportion of eligible children in the agencies' service area who are not currently being 
81.6 	served. A Head Start grantee must be funded at a per child rate equal to its contracted, 
81.7 	federally funded base level for program accounts 20, 22, and 25 at the start of the fiscal 
81.8 	year. In allocating funds under this paragraph, the commissioner of education must assure 
81.9 	that each Head Start granteeprogram in existence in 1993 is allocated no less funding 
81.10 	in any fiscal year than was allocated to that granteeprogram in fiscal year 1993. The 
81.11 	commissioner may provide additional funding to grantees for start-up costs incurred by 
81.12 	grantees due to the increased number of children to be served. Before paying money to 
81.13 	the grantees programs, the commissioner must notify each granteeprogram of its initial 
81.14 	allocation, how the money must be used, and the number of low-income children that 
81.15 	mustto be served with the allocation based upon the federally funded per child rate. 
81.16 	Each granteeprogram must present a work plan to the commissioner for approval. The 
81.17 	work plan must include the estimated number of low-income children and families it will 
81.18 	be able to serve, a description of the program design and service delivery area which 
81.19 	meets the needs of and encourages access by low-income working families, a program 
81.20 	design that ensures fair and equitable access to Head Start services for all populations and 
81.21 	parts of the service area, and a plan for coordinating services to maximize assistance 
81.22 	for child care costs available to families under chapter 119B.under section 119A.535. 
81.23 	For any grantee that cannot utilize its full allocation, the commissioner must reduce the 
81.24 	allocation proportionately. Money available after the initial allocations are reduced must 
81.25 	be redistributed to eligible grantees.

81.26 	Sec. 3. Minnesota Statutes 2004, section 119A.53, is amended to read:
81.27 	119A.53 FEDERAL REQUIREMENTS.
81.28 	GranteesPrograms and the commissioner shall comply with federal regulations 
81.29 	governing the federal Head Start program, except for funding for innovative initiatives 
81.30 	under section  119A.52 119A.535 as approved by the commissioner, which may be used to 
81.31 	operate differently than federal Head Start regulations. If a state statute or rule conflicts 
81.32 	with a federal statute or regulation, the state statute or rule prevails. 

81.33 	Sec. 4. [119A.535] APPLICATION REQUIREMENTS.
82.1 	Eligible Head Start organizations must submit a plan to the department for approval 
82.2 	on a form and in the manner prescribed by the commissioner. The plan must include:
82.3 	(1) the estimated number of low-income children and families the program will be 
82.4 	able to serve;
82.5 	(2) a description of the program design and service delivery area which meets the 
82.6 	needs of and encourages access by low-income working families;
82.7 	(3) a program design that ensures fair and equitable access to Head Start services for 
82.8 	all populations and parts of the service area;
82.9 	(4) a plan for coordinating services to maximize assistance for child care costs 
82.10 	available to families under chapter 119B; and
82.11 	(5) identification of regular Head Start, early Head Start, and innovative services 
82.12 	based upon demonstrated needs to be provided.

82.13 	Sec. 5. Minnesota Statutes 2004, section 119A.545, is amended to read:
82.14 	119A.545 AUTHORITY TO WAIVE REQUIREMENTS DURING DISASTER 
82.15 	PERIODS.
82.16 	The commissioner of education may waive requirements under sections  119A.50
82.17 	to  119A.53 119A.535, for up to nine months after the disaster, for Head Start grantees
82.18 	programs in areas where a federal disaster has been declared under United States Code, 
82.19 	title 42, section 5121, et seq., or the governor has exercised authority under chapter 12. 
82.20 	The commissioner shall notify the chairs of the appropriate senate Family and Early 
82.21 	Childhood Education Budget Division, the senate Education Finance Committee, theand 
82.22 	house Family and Early Childhood Education Finance Division, the house Education 
82.23 	Committee, and the house Ways and Means Committeecommittees ten days before the 
82.24 	effective date of any waiver granted under this section. 

82.25 	Sec. 6. Minnesota Statutes 2004, section 121A.17, subdivision 3, is amended to read:
82.26 		Subd. 3.Screening program. (a) A screening program must include at least the 
82.27 	following components: developmental assessments, hearing and vision screening or 
82.28 	referral, immunization review and referral, the child's height and weight, identification 
82.29 	of risk factors that may influence learning, an interview with the parent about the child, 
82.30 	and referral for assessment, diagnosis, and treatment when potential needs are identified. 
82.31 	The district and the person performing or supervising the screening must provide a 
82.32 	parent or guardian with clear written notice that the parent or guardian may decline to 
82.33 	answer questions or provide information about family circumstances that might affect 
82.34 	development and identification of risk factors that may influence learning. The notice 
83.1 	must clearly state that declining to answer questions or provide information does not 
83.2 	prevent the child from being enrolled in kindergarten or first grade if all other screening 
83.3 	components are met. If a parent or guardian is not able to read and comprehend the written 
83.4 	notice, the district and the person performing or supervising the screening must convey 
83.5 	the information in another manner. The notice must also inform the parent or guardian 
83.6 	that a child need not submit to the district screening program if the child's health records 
83.7 	indicate to the school that the child has received comparable developmental screening 
83.8 	performed within the preceding 365 days by a public or private health care organization or 
83.9 	individual health care provider. The notice must be given to a parent or guardian at the 
83.10 	time the district initially provides information to the parent or guardian about screening 
83.11 	and must be given again at the screening location.
83.12 	(b) The social/emotional component of the developmental assessment must be 
83.13 	completed using a social/emotional screening instrument approved by the commissioner 
83.14 	of education, and consistent with the standards of the commissioners of health and human 
83.15 	services.
83.16 	(c) All screening components shall be consistent with the standards of the state 
83.17 	commissioner of health for early developmental screening programs. A developmental 
83.18 	screening program must not provide laboratory tests or a physical examination to any 
83.19 	child. The district must request from the public or private health care organization or the 
83.20 	individual health care provider the results of any laboratory test or physical examination 
83.21 	within the 12 months preceding a child's scheduled screening.
83.22 	(c) (d) If a child is without health coverage, the school district must refer the child to 
83.23 	an appropriate health care provider.
83.24 	(d) (e) A board may offer additional components such as nutritional, physical and 
83.25 	dental assessments, review of family circumstances that might affect development, blood 
83.26 	pressure, laboratory tests, and health history.
83.27 	(e) (f) If a statement signed by the child's parent or guardian is submitted to the 
83.28 	administrator or other person having general control and supervision of the school that 
83.29 	the child has not been screened because of conscientiously held beliefs of the parent 
83.30 	or guardian, the screening is not required.

83.31 	Sec. 7. Minnesota Statutes 2005 Supplement, section 121A.17, subdivision 5, is 
83.32 	amended to read:
83.33 		Subd. 5.Developmental screening program information. The board must inform 
83.34 	each resident family with a child eligible to participate in the developmental screening 
83.35 	program about the availability of the program and the state's requirement that a child 
84.1 	receive a developmental screening or provide health records indicating that the child 
84.2 	received a comparable developmental screening from a public or private health care 
84.3 	organization or individual health care provider not later than 30 days after the first 
84.4 	day of attending kindergarten in a public school. A school district must inform all 
84.5 	resident families with eligible children under age seven that their children may receive a 
84.6 	developmental screening conducted either by the school district or by a public or private 
84.7 	health care organization or individual health care provider, and that if a statement signed 
84.8 	by the child's parent or guardian is submitted to the administrator or other person having 
84.9 	general control and supervision of the school that the child has not been screened because 
84.10 	of conscientiously held beliefs of the parent or guardian, the screening is not required.

84.11 	Sec. 8. Minnesota Statutes 2004, section 124D.13, subdivision 2, is amended to read:
84.12 		Subd. 2.Program characteristics. (a) Early childhood family education programs 
84.13 	are programs for children in the period of life from birth to kindergarten, for the parents
84.14 	and other relatives of such these children, and for expectant parents. To the extent 
84.15 	that funds are insufficient to provide programs for all children, early childhood family 
84.16 	education programs should emphasize programming for a child from birth to age three 
84.17 	and encourage parents and other relatives to involve four- and five-year-old children in 
84.18 	school readiness programs, and other public and nonpublic early learning programs. Early 
84.19 	childhood family education programs may include the following:
84.20 	(1) programs to educate parents and other relatives about the physical, mental, 
84.21 	and emotional development of children;
84.22 	(2) programs to enhance the skills of parents and other relatives in providing for 
84.23 	their children's learning and development;
84.24 	(3) learning experiences for children and parents and other relatives that promote 
84.25 	children's development;
84.26 	(4) activities designed to detect children's physical, mental, emotional, or behavioral 
84.27 	problems that may cause learning problems;
84.28 	(5) activities and materials designed to encourage self-esteem, skills, and behavior 
84.29 	that prevent sexual and other interpersonal violence;
84.30 	(6) educational materials which may be borrowed for home use;
84.31 	(7) information on related community resources;
84.32 	(8) programs to prevent child abuse and neglect;
84.33 	(9) other programs or activities to improve the health, development, and school 
84.34 	readiness of children; or
84.35 	(10) activities designed to maximize development during infancy.
85.1 	The programs must not include activities for children that do not require substantial 
85.2 	involvement of the children's parents or other relatives. The programs must be reviewed 
85.3 	periodically to assure the instruction and materials are not racially, culturally, or sexually 
85.4 	biased. The programs must encourage parents to be aware of practices that may affect 
85.5 	equitable development of children.
85.6 	(b) For the purposes of this section, "relative" or "relatives" means noncustodial 
85.7 	grandparents or other persons related to a child by blood, marriage, adoption, or foster 
85.8 	placement, excluding parents.

85.9 	Sec. 9. Minnesota Statutes 2004, section 124D.13, subdivision 3, is amended to read:
85.10 		Subd. 3.Substantial parental involvement. The requirement of substantial 
85.11 	parentalor other relative involvement in subdivision 2 means that:
85.12 	(a) parents or other relatives must be physically present much of the time in classes 
85.13 	with their children or be in concurrent classes;
85.14 	(b) parenting education or family education must be an integral part of every early 
85.15 	childhood family education program;
85.16 	(c) early childhood family education appropriations must not be used for traditional 
85.17 	day care or nursery school, or similar programs; and
85.18 	(d) the form of parent involvement common to kindergarten, elementary school, or 
85.19 	early childhood special education programs such as parent conferences, newsletters, and 
85.20 	notes to parents do not qualify a program under subdivision 2.

85.21 	Sec. 10. Minnesota Statutes 2005 Supplement, section 124D.175, is amended to read:
85.22 	124D.175 MINNESOTA EARLY LEARNING FOUNDATION PROPOSAL.
85.23 	(a) The commissioner must implement an early childhood development grant 
85.24 	program for low-income and other challenged families that increases the effectiveness 
85.25 	and expands the capacity of public and nonpublic early childhood development programs, 
85.26 	which may include child care programs, and leads to improved early childhood parent 
85.27 	education and children's kindergarten readiness. The program must include:
85.28 	(1) grant awards to existing early childhood development program providers that 
85.29 	also provide parent education programs and to qualified providers proposing to implement 
85.30 	pilot programs for this same purpose;
85.31 	(2) grant awards to enable low-income families to participate in these programs;
85.32 	(3) grant awards to improve overall programmatic quality; and
85.33 	(4) an evaluation of the programmatic and financial efficacy of all these programs, 
85.34 	which may be performed using measures of services, staffing, and management systems 
86.1 	that provide consistent information about system performance, show trends, confirm 
86.2 	successes, and identify potential problems in early childhood development programs.
86.3 	This grant program must not supplant existing early childhood development programs 
86.4 	or child care funds.
86.5 	(b) The commissioner must contract withmake a grant to a private nonprofit, section 
86.6 	501(c)(3) organization to implement the requirements of paragraph (a). Notwithstanding 
86.7 	any laws to the contrary, the private nonprofit organization may contract with the 
86.8 	University of Minnesota for purposes of implementing paragraph (a), clause (4). The 
86.9 	private nonprofit organization must be governed by a board of up to 19 directors composed 
86.10 	of members from the public and nonpublic sectors, where the nonpublic sector members 
86.11 	compose a simple majority of board members and where the public sector members are 
86.12 	state and local government officials, kindergarten through grade 12 or postsecondary 
86.13 	educators, and early childhood providers appointed by the governor. Membership on the 
86.14 	board of directors by a state agency official are work duties for the official and are not a 
86.15 	conflict of interest under section 43A.38. The board of directors must appoint an executive 
86.16 	director and must seek advice from geographically and, ethnically, and economically
86.17 	diverse parents of young children and representatives of early childhood development 
86.18 	providers, kindergarten through grade 12 and postsecondary educators, public libraries, 
86.19 	and the business sector.
86.20 	The governor shall appoint up to seven voting members that include representatives 
86.21 	of:
86.22 	(1) kindergarten through grade 12 or postsecondary educators;
86.23 	(2) early childhood development providers, including child care providers;
86.24 	(3) local school boards;
86.25 	(4) nonprofit organizations with expertise in early childhood development; and
86.26 	(5) federal early childhood programs serving low-income children. 
86.27 	The governor shall ensure that, to the extent possible, the board of directors is 
86.28 	balanced according to geography, race, ethnicity, age, gender, and economic status.
86.29 	The commissioners of education and human services shall be nonvoting members 
86.30 	of the private nonprofit organization. The speaker of the house of representatives, the 
86.31 	minority leader of the house of representatives, the majority leader of the senate, and the 
86.32 	minority leader of the senate shall each appoint a legislator to be nonvoting members of 
86.33 	the board.
86.34 	 The board of directors is subject to the open meeting law under chapter 13D. 
86.35 	All other terms and conditions under which board members serve and operate must be 
86.36 	described in the articles and bylaws of the organization. The private nonprofit organization 
87.1 	is not a state agency and is not subject to laws governing public agencies except the 
87.2 	provisions of chapter 13, salary limits under section 15A.0815, subdivision 2, and audits 
87.3 	by the legislative auditor under chapter 3 apply.
87.4 	(c) This section expires June 30, 2011. If no state appropriation is made for purposes 
87.5 	of this section, the commissioner must not implement paragraphs (a) and (b).

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

87.8 	Sec. 11. Minnesota Statutes 2004, section 245A.023, is amended to read:
87.9 	245A.023 IN-SERVICE TRAINING.
87.10 	(a) For purposes of child care centers, in-service training must be completed within 
87.11 	the license period for which it is required. In-service training completed by staff persons 
87.12 	as required must be transferable upon a staff person's change in employment to another 
87.13 	child care program. License holders shall record all staff in-service training on forms 
87.14 	prescribed by the commissioner of human services.
87.15 	(b) For purposes of family and group family child care, the license holder and each 
87.16 	primary caregiver must complete 12 hours of training each year. For purposes of this 
87.17 	section, a primary caregiver is an adult caregiver who provides services in the licensed 
87.18 	setting more than 30 days in any 12-month period.

87.19 	Sec. 12. Minnesota Statutes 2004, section 245A.14, is amended by adding a 
87.20 	subdivision to read:
87.21 		Subd. 9a.Early childhood development training. (a) For purposes of child 
87.22 	care centers, the director and all staff hired after July 1, 2006, shall complete and 
87.23 	document at least two hours of early childhood development training within the first year 
87.24 	of employment. Training completed under this subdivision may be used to meet the 
87.25 	requirements of Minnesota Rules, part 9503.0035, subparts 1 and 4.
87.26 	(b) For purposes of family and group family child care, the license holder and 
87.27 	each adult caregiver who provides care in the licensed setting more than 30 days in any 
87.28 	12-month period shall complete and document at least two hours of early childhood 
87.29 	development training within the first year of licensure or employment. Training completed 
87.30 	under this subdivision may be used to meet the requirements of Minnesota Rules, part 
87.31 	9502.0385, subparts 2 and 3.
87.32 	(c) Notwithstanding paragraphs (a) and (b), individuals are exempt from this 
87.33 	requirement if they:
88.1 	(1) have taken a three-credit course on early childhood development within the 
88.2 	past five years;
88.3 	(2) have received a baccalaureate or masters degree in early childhood education or 
88.4 	school age child care within the past five years;
88.5 	(3) are licensed in Minnesota as a prekindergarten teacher, an early childhood 
88.6 	educator, a kindergarten to sixth grade teacher with a prekindergarten specialty, an 
88.7 	early childhood special education teacher, or an elementary teacher with a kindergarten 
88.8 	endorsement; or
88.9 	(4) have received a baccalaureate degree with a Montessori certificate within the 
88.10 	past five years.

88.11 	Sec. 13. Laws 2005, First Special Session chapter 5, article 7, section 20, subdivision 
88.12 	5, is amended to read:
88.13 	
88.14 	Subd. 5. Head Start program. For Head Start programs  under Minnesota Statutes, 
88.15 	section 119A.52:  

88.16		$
	19,100,000
	.....
	2006
	
88.17		$
	19,100,000
	.....
	2007
	
88.18 	Any balance in the first year does not cancel but is available in the second year.

88.19 	Sec. 14. EARLY CHILDHOOD AND EARLY ELEMENTARY GRADE 
88.20 	INTEGRATION.
 88.21 	For fiscal years 2007 through 2017, a school district, charter school, Head Start 
88.22 	program, or any relevant public or private entity may work together to develop a pilot 
88.23 	program to demonstrate the efficacy of integrating early childhood education and care with 
88.24 	early elementary grades. A district, charter school, or Head Start program that develops 
88.25 	an early childhood integration pilot program must use existing funds to pay for the pilot 
88.26 	program's cost. School districts, charter schools, Head Start programs, and public or 
88.27 	private entities that participate in this pilot program are encouraged to enter into an 
88.28 	agreement to provide early education and care for children under a unified administrative 
88.29 	structure that establishes an education continuum for children during the prekindergarten, 
88.30 	kindergarten, and postkindergarten years through grade 3. A copy of the agreement 
88.31 	must be sent to the commissioner of education. School districts, charter schools, Head 
88.32 	Start programs, and public or private entities that participate in this pilot program are 
89.1 	encouraged to provide for the education, support, and empowerment of parents and special 
89.2 	education for children as needed.
89.3 	This provision does not supercede existing agreements and arrangements between 
89.4 	school districts or schools and early childhood education programs that are permitted 
89.5 	under existing law.

89.6 	Sec. 15. RAMSEY COUNTY CHILD CARE PILOT PROJECT.
 89.7 		Subdivision 1.Authorization for pilot project. The commissioner of human 
89.8 	services shall approve a pilot project in Ramsey County that will help teen parents remain 
89.9 	in school and complete the student's education while providing child care assistance for 
89.10 	the student's child. The pilot project shall increase coordination between services from 
89.11 	the Minnesota family investment program, the child care assistance program, and area 
89.12 	public schools with the goal of removing barriers that prevent teen parents from pursuing 
89.13 	educational goals.
89.14 		Subd. 2.Program design and implementation. The Ramsey County child care 
89.15 	pilot project shall be established to improve the coordination of services to teen parents. 
89.16 	The pilot project shall:
89.17 	(1) provide a streamlined process for sharing information between the Minnesota 
89.18 	family investment program under Minnesota Statutes, chapter 256J, the child care 
89.19 	assistance program under Minnesota Statutes, chapter 119B, and public schools in 
89.20 	Ramsey County;
89.21 	(2) determine eligibility for child care assistance using the teen parent's eligibility 
89.22 	for reduced-cost or free school lunches in place of income verification; and
89.23 	(3) waive the child care parent fee under Minnesota Statutes, section 119B.12, 
89.24 	subdivision 2, for teen parents whose income is below poverty level and whose children 
89.25 	attend school-based child care centers.
89.26 		Subd. 3.Costs. Increased costs incurred under this section shall not increase the 
89.27 	basic sliding fee appropriation and shall not affect funds available for distribution under 
89.28 	Minnesota Statutes, section 119B.03, subdivisions 6 and 8.

89.29 	Sec. 16.  REPEALER.
 89.30 	Minnesota Statutes 2004, section 119A.51, is repealed.

90.1 	ARTICLE 8
90.2 	POSTSECONDARY EDUCATION

90.3 	Section 1. Minnesota Statutes 2004, section 135A.031, is amended by adding a 
90.4 	subdivision to read:
90.5 		Subd. 3a.Determination of instructional services base. The instructional services 
90.6 	base for each public postsecondary system is the sum of: (1) the state share; (2) the 
90.7 	legislatively estimated tuition for the second year of the most recent biennium; and (3) 
90.8 	adjustments for inflation and enrollment changes as calculated in subdivision 4a.

90.9 	Sec. 2. Minnesota Statutes 2004, section 135A.031, is amended by adding a 
90.10 	subdivision to read:
90.11 		Subd. 4a.Adjustment for enrollments. (a) Each public postsecondary system's 
90.12 	instructional services base shall be adjusted for estimated changes in enrollments. For 
90.13 	each two percent change in estimated full-year equivalent enrollment, an adjustment shall 
90.14 	be made to 65 percent of the instructional services base. The remaining 35 percent of the 
90.15 	instructional services base is not subject to the adjustment in this subdivision.
90.16 	(b) When student enrollment is used for  budgeting purposes, the student enrollment 
90.17 	shall be measured in  full-year equivalents and shall include only enrollments in  courses 
90.18 	that award credit or otherwise satisfy any of the  requirements of an academic or vocational 
90.19 	program.
90.20 	(c) The enrollment adjustment shall be made for each year of the subsequent 
90.21 	biennium. The base enrollment year is the 1995 fiscal year enrollment. The base 
90.22 	enrollment shall be updated for each two percent change in estimated full-year equivalent 
90.23 	enrollment. If the actual enrollment differs from the estimated enrollment, an adjustment 
90.24 	shall be made in the next biennium.

90.25 	Sec. 3. Minnesota Statutes 2004, section 135A.031, subdivision 7, is amended to read:
90.26 		Subd. 7.Reports. Instructional expenditure and enrollment data for each 
90.27 	instructional category shall be submitted to the Office of Higher Education and the 
90.28 	Department of Finance and included in the biennial budget document. The specific data 
90.29 	shall be submitted only after the director of the Office of Higher Education has consulted 
90.30 	with a data advisory task force to determine the need, content, and detail of the information.

90.31 	Sec. 4. [135A.043] RESIDENT TUITION.
91.1 	(a) A student shall qualify for a resident tuition rate or its equivalent at state 
91.2 	universities and colleges, including the University of Minnesota, if the student meets 
91.3 	all of the following requirements:
91.4 	(1) high school attendance within the state for three or more years;
91.5 	(2) graduation from a state high school or attainment within the state of the 
91.6 	equivalent of high school graduation; and
91.7 	(3) registration as an entering student at, or current enrollment in, a public institution 
91.8 	of higher education.
91.9 	(b) This section is in addition to any other statute, rule, or higher education 
91.10 	institution regulation or policy providing eligibility for a resident tuition rate or its 
91.11 	equivalent to a student.
91.12 	(c) To qualify for resident tuition under this section an individual who is not a citizen 
91.13 	or permanent resident of the United States must provide the college or university with 
91.14 	an affidavit that the individual will file an application to become a permanent resident at 
91.15 	the earliest opportunity the individual is eligible to do so.

91.16 	EFFECTIVE DATE. This section is effective the day following final enactment 
91.17 	and applies to tuition for school terms commencing on or after that date.

91.18 	Sec. 5. Minnesota Statutes 2004, section 135A.053, subdivision 2, is amended to read:
91.19 		Subd. 2.Performance and accountability. Higher education systems and 
91.20 	campuses are expected to achieve the objectives in subdivision 1 and will be held 
91.21 	accountable for doing so. The legislature is increasing the flexibility of the systems and 
91.22 	campuses to provide greater responsibility to higher education in deciding how to achieve 
91.23 	statewide objectives, and to decentralize authority so that those decisions can be made 
91.24 	at the level where the education is delivered. To demonstrate their accountability, the 
91.25 	legislature expects each system and campus to measure and report on its performance, 
91.26 	using meaningful indicators that are critical to achieving the objectives in subdivision 1, 
91.27 	as provided in section  135A.033. Nothing in this section precludes a system or campus 
91.28 	from determining its own objectives and performance measures beyond those identified 
91.29 	in this section. 

91.30 	Sec. 6. Minnesota Statutes 2005 Supplement, section 135A.52, subdivision 1, is 
91.31 	amended to read:
91.32 		Subdivision 1.Fees and tuition. Except for an administration fee established by the 
91.33 	governing board at a level to recover costs, to be collected only when a course is taken for 
91.34 	credit, a senior citizen who is a legal resident of Minnesota is entitled without payment 
92.1 	of tuition or activity fees to attend courses offered for credit, audit any courses offered 
92.2 	for credit, or enroll in any noncredit courses in any state supported institution of higher 
92.3 	education in Minnesota when space is available after all tuition-paying students have been 
92.4 	accommodated. A senior citizen enrolled under this section must pay any materials, 
92.5 	personal property, or service charges for the course. In addition, a senior citizen who is 
92.6 	enrolled in a course for credit must pay an administrative fee in an amount established 
92.7 	by the governing board of the institution to recover the course costs. There shall be no 
92.8 	administrative fee charges to a senior citizen auditing a course. For the purposes of this 
92.9 	section and section 135A.51, the term "noncredit courses" shall not include those courses 
92.10 	designed and offered specifically and exclusively for senior citizens.
92.11 	The provisions of this section and section 135A.51 do not apply to noncredit courses 
92.12 	designed and offered by the University of Minnesota, and the Minnesota State Colleges 
92.13 	and Universities specifically and exclusively for senior citizens. Senior citizens enrolled 
92.14 	under the provisions of this section and section 135A.51 shall not be included by such 
92.15 	institutions in their computation of full-time equivalent students when requesting staff 
92.16 	or appropriations.

92.17 	Sec. 7. Minnesota Statutes 2005 Supplement, section 135A.52, subdivision 2, is 
92.18 	amended to read:
92.19 		Subd. 2.Term; income of senior citizens. (a) Except under paragraph (b), there 
92.20 	shall be no limit to the number of terms, quarters, or semesters a senior citizen may attend 
92.21 	courses, nor income limitation imposed in determining eligibility.
92.22 	(b) A senior citizen enrolled in a closed enrollment contract training or professional 
92.23 	continuing education program is not eligible for benefits under subdivision 1.

92.24 	Sec. 8. Minnesota Statutes 2004, section 136A.15, is amended by adding a subdivision 
92.25 	to read:
92.26 		Subd. 10.Eligible cosigner. "Eligible cosigner" means a cosigner who:
92.27 	(1) is at least 24 years old, and at least 18 years old if a sibling;
92.28 	(2) is a United States citizen or permanent resident;
92.29 	(3) permanently resides in the United States;
92.30 	(4) agrees to the release of information to a consumer credit reporting agency, as 
92.31 	specified in section 136A.162, paragraph (b); and
92.32 	(5) is creditworthy by meeting all of the following requirements:
92.33 	(i) no balances at a consumer credit reporting agency discharged through bankruptcy 
92.34 	within the seven years prior to application for credit;
93.1 	(ii) no garnishments, attachments, foreclosure, repossession, or defendant in a suit to 
93.2 	collect a debt appearing on the credit report;
93.3 	(iii) no tax or mechanics liens or judgments appearing on the credit report; 
93.4 	(iv) no items that are charged off or are delinquent for 120 days or more, that 
93.5 	in total exceed $50; and
93.6 	(v) no more than five percent of current balances at a consumer credit reporting 
93.7 	agency past due, that in total exceed $50.
93.8 	The office may establish alternative credit requirements using credit scoring.

93.9 	Sec. 9. Minnesota Statutes 2004, section 136A.16, is amended by adding a subdivision 
93.10 	to read:
93.11 		Subd. 16.Interest rate swaps and other agreements. (a) The office may enter into 
93.12 	interest rate exchange or swap agreements, hedges, forward purchase or sale agreements, 
93.13 	or other comparable interest rate protection agreements with a third party in connection 
93.14 	with the issuance or proposed issuance of bonds, outstanding bonds or notes, or existing 
93.15 	comparable interest rate protection agreements.
93.16 	(b) The agreements authorized by this subdivision include, without limitation, master 
93.17 	agreements, options, or contracts to enter into those agreements in the future and related 
93.18 	agreements, including, without limitation, agreements to provide credit enhancement, 
93.19 	liquidity, or remarketing.
93.20 	(c) The agreements authorized by this subdivision may be entered into on the basis 
93.21 	of negotiation with a qualified third party or through a competitive proposal process on 
93.22 	terms and conditions as and with covenants and provisions approved by the office and 
93.23 	may include, without limitation:
93.24 	(1) provisions establishing reserves;
93.25 	(2) pledging assets or revenues of the office for current or other payments or 
93.26 	termination payments;
93.27 	(3) contracting with the other parties to the agreements to provide for the custody, 
93.28 	collection, securing, investment, and payment of money of the office or money held in 
93.29 	trust; or
93.30 	(4) requiring the issuance of bonds or other agreements authorized by this section 
93.31 	in the future.
93.32 	(d) With respect to bonds or notes outstanding or proposed to be issued bearing 
93.33 	interest at a variable rate, the office may agree to pay sums equal to interest at a fixed rate 
93.34 	or at a different variable rate determined in accordance with a formula set out in the 
93.35 	agreement on an amount not exceeding the outstanding principal amount of the bonds or 
94.1 	notes at the time of payment in exchange for an agreement by the third party to pay sums 
94.2 	equal to interest on a like amount at a variable rate determined according to a formula 
94.3 	set out in the agreement.
94.4 	(e) With respect to bonds or notes outstanding or proposed to be issued bearing 
94.5 	interest at a fixed rate or rates, the office may agree to pay sums equal to interest at a 
94.6 	variable rate determined in accordance with a formula set out in the agreement on an 
94.7 	amount not exceeding the outstanding principal amount of the bonds or notes at the time of 
94.8 	payment in exchange for an agreement by the third party to pay sums equal to interest on a 
94.9 	like amount at a fixed rate or rates determined according to a formula set in the agreement.
94.10 	(f) Subject to any applicable covenants of the office, payments required to be made 
94.11 	by the office under the agreement, including termination payments, may be made from 
94.12 	amounts pledged or available to pay debt service on the bonds or notes with respect to 
94.13 	which the agreement was made or from assets of the loan capital fund of the office. 
94.14 	The office may issue bonds or notes to provide for any payments, including, without 
94.15 	limitation, a termination payment due or to become due under an agreement authorized 
94.16 	under this section.

94.17 	Sec. 10. Minnesota Statutes 2004, section 136A.162, is amended to read:
94.18 	136A.162 CLASSIFICATION OF DATA.
94.19 	All (a) Except as provided in paragraphs (b) and (c), data on applicants for financial 
94.20 	assistance collected and used by the Higher Education Services Office for student 
94.21 	financial aid programs administered by that office shall be classified as are private data 
94.22 	on individuals under as defined in section  13.02, subdivision 12. Exceptions to this 
94.23 	classification are that: 
94.24 	(a) the names and addresses of program recipients or participants are public data;
94.25 	(b) Data on applicants may be disclosed to the commissioner of human services 
94.26 	to the extent necessary to determine eligibility under section  136A.121, subdivision 2, 
94.27 	clause (5); and.
94.28 	(c) The following data collected in the Minnesota supplemental loan program under 
94.29 	section  136A.1701 may be disclosed to a consumer credit reporting agency only if the 
94.30 	borrower and the cosigner give informed consent, according to section  13.05, subdivision 
94.31 	4, at the time of application for a loan: 
94.32 	(1) the lender-assigned borrower identification number;
94.33 	(2) the name and address of borrower;
94.34 	(3) the name and address of cosigner;
94.35 	(4) the date the account is opened;
95.1 	(5) the outstanding account balance;
95.2 	(6) the dollar amount past due;
95.3 	(7) the number of payments past due;
95.4 	(8) the number of late payments in previous 12 months;
95.5 	(9) the type of account;
95.6 	(10) the responsibility for the account; and
95.7 	(11) the status or remarks code.

95.8 	Sec. 11. Minnesota Statutes 2004, section 136A.1701, is amended by adding a 
95.9 	subdivision to read:
95.10 		Subd. 13.Cosigner requirement. All borrowers under this section must have an 
95.11 	eligible cosigner. The cosigner is jointly and separately responsible for making loan 
95.12 	payments, including principal, interest, and other charges.

95.13 	Sec. 12. [136A.1704] LOAN REHABILITATION.
95.14 	(a) For SELF loans that have defaulted, the borrower or cosigner has the option to 
95.15 	rehabilitate the loan, as loan rehabilitation is not prohibited under any federal or state 
95.16 	statute, rule, regulation, act, or requirement.
95.17 	(b) A defaulted SELF loan can be rehabilitated only once and rehabilitation can 
95.18 	only be attempted twice per loan.
95.19 	(c) An agreement specifying the required payment amount and payment due date 
95.20 	must be signed by the borrower or cosigner prior to the start of the rehabilitation process 
95.21 	and within two years of the default date.
95.22 	(d) Twelve consecutive months of on-time payments are required to consider the 
95.23 	loan rehabilitated. There is a five-business-day grace period.
95.24 	(e) If the loan is paid in full within 90 days of default, the loan will be considered 
95.25 	rehabilitated upon receipt of a rehabilitation request.
95.26 	(f) Rehabilitation results in removal of the defaulted status, but not the past due 
95.27 	history, from the credit bureau.

95.28 	Sec. 13. [136A.1705] TEMPORARY TOTAL DISABILITY.
95.29 	A temporary total disability for up to three years may be granted to a borrower upon 
95.30 	medical certification that the total disability is expected to last four months or longer. The 
95.31 	total disability must have originated after the loan was fully disbursed. The borrower is 
95.32 	required to provide a certification from a qualified physician. A qualified physician is a 
95.33 	doctor of medicine or osteopathy who is legally authorized to practice medicine. Periodic 
96.1 	recertifications of the total disability status must be provided upon request. During the 
96.2 	approved total disability period, the loan does not accrue interest. The borrower shall be 
96.3 	given the option to sign a payment extension agreement at the time payments are resumed.

96.4 	Sec. 14. Minnesota Statutes 2004, section 136A.233, subdivision 3, is amended to read:
96.5 		Subd. 3.Payments. Work-study payments shall be made to eligible students by 
96.6 	postsecondary institutions as provided in this subdivision.
96.7 	(a) Students shall be selected for participation in the program by the postsecondary 
96.8 	institution on the basis of student financial need.
96.9 	(b) In selecting students for participation, priority must be given to students enrolled 
96.10 	for at least 12 credits. In each academic year, a student may be awarded work-study 
96.11 	payments for one period of nonenrollment or less than half-time enrollment if the student 
96.12 	enrolls on at least a half-time basis during the following academic term.
96.13 	(c) Students will be paid for hours actually worked and the maximum hourly rate 
96.14 	of pay shall not exceed the maximum hourly rate of pay permitted under the federal 
96.15 	college work-study program.
96.16 	(d) Minimum pay rates will be determined by an applicable federal or state law.
96.17 	(e) The office shall annually establish a minimum percentage rate of student 
96.18 	compensation to be paid by an eligible employer.
96.19 	(f) Each postsecondary institution receiving money for state work-study grants 
96.20 	shall make a reasonable effort to place work-study students in employment with eligible 
96.21 	employers outside the institution. However, a public employer other than the institution 
96.22 	may not terminate, lay off, or reduce the working hours of a permanent employee for the 
96.23 	purpose of hiring a work-study student, or replace a permanent employee who is on layoff 
96.24 	from the same or substantially the same job by hiring a work-study student.
96.25 	(g) The percent of the institution's work-study allocation provided to graduate 
96.26 	students shall not exceed the percent of graduate student enrollment at the participating 
96.27 	institution.
96.28 	(h) An institution may use up to 30 percent of its allocation for student internships 
96.29 	with private, for-profit employers.

96.30 	Sec. 15. Minnesota Statutes 2004, section 136F.02, subdivision 1, is amended to read:
96.31 		Subdivision 1.Membership. The board consists of 15 members appointed by the 
96.32 	governor with the advice and consent of the senate. At least one member of the board 
96.33 	must be a resident of each congressional district. Three members must be students who are 
96.34 	enrolled at least half time in a degree, diploma, or certificate program or have graduated 
97.1 	from an institution governed by the board within one year of the date of appointment. The 
97.2 	student members shall include: one member from a community college, one member from 
97.3 	a state university, and one member from a technical college. The remaining members must 
97.4 	be appointed to represent the state at large. At least one member must be a representative 
97.5 	of organized labor and at least one member must be a representative of business.

97.6 	EFFECTIVE DATE. This section is effective the day following final enactment, 
97.7 	applies to appointments to the board made on and after that date, and must be complied 
97.8 	with as soon as vacancies can be filled.

97.9 	Sec. 16. Minnesota Statutes 2004, section 136F.42, subdivision 1, is amended to read:
97.10 		Subdivision 1.Time reporting. As provided in Executive Order 96-2, the board, 
97.11 	in consultation with the commissioners of employee relations and finance, may develop 
97.12 	policies to allow system office or campus employees on salaries, as defined in section  
97.13 	43A.17, subdivision 1, to use negative time reporting in which employees report only that 
97.14 	time for which leave is taken. By the end of the 1997 fiscal year, the board, in consultation 
97.15 	with the commissioners of employee relations and finance, shall evaluate the use of 
97.16 	negative time reporting and its potential for use with other state employees. 

97.17 	Sec. 17. Minnesota Statutes 2004, section 136F.71, subdivision 2, is amended to read:
97.18 		Subd. 2.Activity funds. All receipts attributable to the state colleges and 
97.19 	universities activity funds and deposited in the state treasury are appropriated to the board 
97.20 	and are not subject to budgetary control as exercised by the commissioner of finance.

97.21 	Sec. 18. Minnesota Statutes 2004, section 136F.71, is amended by adding a subdivision 
97.22 	to read:
97.23 		Subd. 4.Banking services. Notwithstanding section 16A.27, the board shall 
97.24 	have authority to control the amount and manner of deposit of all receipts described in 
97.25 	this section in depositories selected by the board. The board's authority shall include 
97.26 	specifying the considerations, financial activities, and conditions required from the 
97.27 	depository, including the requirement of collateral security or a corporate surety bond 
97.28 	as described in section 118A.03. The board may compensate the depository, including 
97.29 	paying a reasonable charge to the depository, maintaining appropriate compensating 
97.30 	balances with the depository, or purchasing non-interest-bearing certificates of deposit 
97.31 	from the depository for performing depository-related services.

98.1 	Sec. 19. TEMPORARY PROVISION FOR APPROVAL OF CERTAIN HIGHER 
98.2 	EDUCATION DEGREES.
 98.3 		Subdivision 1.Supersede. This section supersedes any conflicting Minnesota 
98.4 	statute or rule.
98.5 		Subd. 2.Degree approval. A school licensed pursuant to Minnesota Statutes, 
98.6 	chapter 141, may not grant a degree as defined in Minnesota Statutes, section 136A.62, 
98.7 	subdivision 4, unless the degree is approved by the Office of Higher Education.
98.8 		Subd. 3.Approval criteria. A school licensed pursuant to Minnesota Statutes, 
98.9 	chapter 141, to obtain approval to grant a degree must provide evidence to the Office of 
98.10 	Higher Education that the following requirements are met:
98.11 	(1) the school employs qualified teaching personnel to provide the educational 
98.12 	programs for each degree for which approval is sought;
98.13 	(2) the educational program is appropriate to each degree for which approval is 
98.14 	sought;
98.15 	(3) the school has appropriate and accessible library, laboratory, and other physical 
98.16 	facilities to support the education program for each degree for which approval is sought; 
98.17 	and
98.18 	(4) the school makes a rationale showing that the degree programs are consistent 
98.19 	with the school's mission and goals.
98.20 		Subd. 4.Effect of approval. Approval to grant a degree under this section has the 
98.21 	same effect as approval under Minnesota Statutes, section 136A.65.
98.22 		Subd. 5.Notice of changes. A school authorized to grant a degree under this section 
98.23 	must notify the Office of Higher Education of proposed changes to the degree and the 
98.24 	addition of majors or specialty areas to a degree.
98.25 		Subd. 6.Expiration. This section expires June 30, 2007.

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

98.27 	Sec. 20. HIGHER EDUCATION TEXTBOOK COST STUDY.
 98.28 	The Minnesota Office of Higher Education shall convene an advisory task force 
98.29 	to study the costs of required textbooks for students attending public and nonpublic 
98.30 	postsecondary institutions. The task force must, at a minimum, include students, faculty, 
98.31 	and administrators. The study must, without limitation, examine textbook pricing trends 
98.32 	and strategies, the practice of textbook rental, policies related to repurchase of textbooks 
98.33 	from students, textbook selection policies, and purchasing practices of colleges and 
98.34 	universities. The task force must review the findings and recommendations of other 
98.35 	existing studies and any state or national laws that have been considered or adopted to 
99.1 	reduce the financial burden of textbook costs. The office must report on its findings and 
99.2 	present any recommendations by January 15, 2007, to the legislative committees with 
99.3 	jurisdiction over higher education policy and finance.

99.4 	Sec. 21. MINNESOTA STATE UNIVERSITY, MANKATO, CONSTRUCTION 
99.5 	AUTHORIZATION.
 99.6 	The Board of Trustees of the Minnesota State Colleges and Universities may design, 
99.7 	construct, furnish, and equip an academic building on the Minnesota State University, 
99.8 	Mankato campus for the College of Business at a site approved by the board using 
99.9 	nonstate money.

99.10 	Sec. 22. UNIVERSITY OF MINNESOTA LICENSING AND MINNESOTA 
99.11 	MARKET IMPACT STUDY.
 99.12 	The University of Minnesota is requested to establish a task force to study the 
99.13 	market impact on Minnesota producers of agricultural products from the University of 
99.14 	Minnesota licensing germplasm and to make recommendations to the legislature and the 
99.15 	Board of Regents on ways to mitigate any negative impacts on Minnesota businesses that 
99.16 	arise from University of Minnesota license agreements. 
99.17 	The task force must include:
99.18 	(1) a representative of the University of Minnesota; 
99.19 	(2) a representative of the Department of Agriculture, serving as the chair; and 
99.20 	(3) representatives of the Minnesota Farm Bureau, the Minnesota Farmers Union, 
99.21 	agricultural commodity organizations, the Minnesota Apple Growers Association, the 
99.22 	Minnesota Fruit and Vegetable Growers Association, the Minnesota Nursery Landscape 
99.23 	Association, and the Minnesota Grown Program. The chair may also invite participation 
99.24 	from other staff and faculty of the University of Minnesota as necessary to fulfill the 
99.25 	purpose of the task force. Members serve on the task force on a voluntary basis.
99.26 	The task force is requested to report to the committees of the legislature with 
99.27 	responsibility for higher education no later than January 15, 2007.

99.28 	Sec. 23. REVISOR'S INSTRUCTION.
 99.29 	The revisor of statutes shall delete the term "sections 136A.15 to 136A.1702" and 
99.30 	insert "sections 136A.15 to 136A.1705" wherever it appears in Minnesota Statutes and 
99.31 	Minnesota Rules.

99.32 	Sec. 24.  REPEALER.
 100.1 	Minnesota Statutes 2004, sections 135A.031, subdivision 5; 135A.033; 136A.15, 
100.2 	subdivision 5; and 136A.1702; Minnesota Statutes 2005 Supplement, section 135A.031, 
100.3 	subdivisions 3 and 4; and Minnesota Rules, parts 4850.0011, subparts 9, 10, 14, and 27; 
100.4 	and 4850.0014, subpart 1, are repealed.