1.1 	A bill for an act
1.2 	relating to education finance; requiring Independent School Districts Nos. 721, 
1.3 	New Prague; 394, Montgomery-Lonsdale; and 659, Northfield, to contract with 
1.4 	Holy Cross School to provide transportation for Holy Cross students.
1.5 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.6 	Section 1. NONPUBLIC PUPIL TRANSPORTATION PILOT PROJECT.
 1.7 		Subdivision 1.Nonpublic pupil contract. Notwithstanding Minnesota Statutes, 
1.8 	section 123B.88, subdivision 2, at the request of Holy Cross School in Webster, Minnesota, 
1.9 	Independent School Districts Nos. 721, New Prague; 394, Montgomery-Lonsdale; and 
1.10 	659, Northfield, must contract with Holy Cross School to provide transportation services 
1.11 	for its resident students that attend Holy Cross School. The contract shall be effective for 
1.12 	fiscal years 2007 through 2009.
1.13 		Subd. 2.Nonpublic pupil transportation aid. Notwithstanding Minnesota 
1.14 	Statutes, section 123B.88, if a contract is requested by Holy Cross School under 
1.15 	subdivision 1, the school districts must pay Holy Cross School an amount equal to the 
1.16 	nonpublic pupil transportation aid that the school districts receive under Minnesota 
1.17 	Statutes, section 123B.92, subdivision 9, for each resident pupil that attends Holy Cross 
1.18 	School who is transported by Holy Cross School under the contract in subdivision 1.
1.19 		Subd. 3.Financial responsibility. Notwithstanding Minnesota Statutes, section 
1.20 	123B.88, if a contract is requested by Holy Cross School under subdivision 1, the school 
1.21 	districts under subdivision 1 are not responsible for any costs associated with transporting 
1.22 	students enrolled at Holy Cross School beyond the nonpublic pupil aid provided in 
1.23 	subdivision 2.
2.1 		Subd. 4.Transportation responsibility. Notwithstanding Minnesota Statutes, 
2.2 	section 123B.88, subdivision 2, if a contract is requested by Holy Cross School under 
2.3 	subdivision 1, the school districts under subdivision 1 are not responsible for providing 
2.4 	transportation to any student attending Holy Cross School for the duration of the contract. 
2.5 	Holy Cross School is responsible for providing transportation for any enrolled student 
2.6 	who requests it.
2.7 		Subd. 5.School control. Notwithstanding Minnesota Statutes, section 123B.88, 
2.8 	if a contract is requested by Holy Cross School under subdivision 1, Holy Cross School 
2.9 	is responsible for scheduling bus routes, determining the manner of transportation, and 
2.10 	providing control and discipline of school children who are being transported by the 
2.11 	school.
2.12 		Subd. 6.Student accounting. If Holy Cross School requests a contract under 
2.13 	subdivision 1, the school shall provide each school district with the number of resident 
2.14 	students enrolled at Holy Cross School who are transported under the contract in 
2.15 	subdivision 1. The school districts shall be required to report these pupils to the 
2.16 	Department of Education for the purposes of nonpublic pupil aid under Minnesota 
2.17 	Statutes, section 123B.92, subdivision 9.
2.18 		Subd. 7.Payment timing. If Holy Cross School requests a contract under 
2.19 	subdivision 1, the school districts shall make four equal quarterly payments equal to 
2.20 	90 percent of the amount that Holy Cross School is eligible to receive for each year of 
2.21 	the contract. The school districts shall make a final payment equal to ten percent of the 
2.22 	amount that Holy Cross School is eligible to receive by October 30 of the following 
2.23 	year for each year of the contract.
2.24 		Subd. 8.Withdrawal. If Holy Cross School elects to participate in the pilot 
2.25 	project in this section, the school may withdraw from the project at the conclusion of 
2.26 	the 2006-2007 or 2007-2008 school year only. The school may not withdraw from the 
2.27 	project in the middle of the school year.
2.28 		Subd. 9.Report. Holy Cross School must agree to provide the commissioner 
2.29 	with information and data about the pilot program by September 15, 2009, if the school 
2.30 	requests a contract under subdivision 1.

2.31 	EFFECTIVE DATE. This section is effective the day following final enactment 
2.32 	and applies to revenue for fiscal years 2007 through 2009.