1.1 	A bill for an act
1.2 	relating to education; providing for kindergarten through grade 12 education 
1.3 	including general education, education excellence, special education, facilities, 
1.4 	accounting and technology, and state agencies; providing for early childhood and 
1.5 	family education; making technical and conforming amendments; authorizing 
1.6 	rulemaking; appropriating money;amending Minnesota Statutes 2004, sections 
1.7 	119A.50, subdivision 1; 119A.52; 119A.53; 119A.545; 120A.20, subdivision 
1.8 	1; 120A.22, subdivision 3; 120B.023; 121A.15, subdivision 10; 123A.06, 
1.9 	subdivision 2; 123B.10, subdivision 1; 123B.77, subdivision 3; 123B.91, 
1.10 	by adding a subdivision; 124D.02, subdivisions 2, 4; 124D.096; 124D.10, 
1.11 	subdivision 16; 124D.11, subdivision 9; 124D.13, subdivisions 2, 3; 124D.61; 
1.12 	124D.68, subdivision 3; 125A.02, subdivision 1; 125A.515, subdivisions 1, 
1.13 	3, 5, 6, 7, 9, 10; 125A.62, subdivision 1; 125A.63, subdivision 4; 125A.65, 
1.14 	subdivisions 3, 4, 6, 8, 10; 125A.69, subdivision 3; 125A.75, subdivision 1; 
1.15 	126C.05, subdivision 1; 126C.10, subdivision 6; 126C.44; 127A.41, subdivision 
1.16 	2; 181.101; Minnesota Statutes 2005 Supplement, sections 120B.021, 
1.17 	subdivision 1a; 120B.11, subdivision 2; 120B.131, subdivision 2; 121A.17, 
1.18 	subdivision 5; 123B.04, subdivision 2; 123B.76, subdivision 3; 123B.92, 
1.19 	subdivisions 1, 5; 124D.095, subdivision 4; 124D.68, subdivision 2; 125A.11, 
1.20 	subdivision 1; 125A.79, subdivision 1; 126C.10, subdivision 24; 126C.43, 
1.21 	subdivision 2; 127A.45, subdivision 10; 626.556, subdivision 2;  Laws 2005, 
1.22 	First Special Session chapter 5, article 2, section 84, subdivision 13; article 7, 
1.23 	section 20, subdivision 5; proposing coding for new law in Minnesota Statutes, 
1.24 	chapter 119A; repealing Minnesota Statutes 2004, sections 119A.51; 120A.20, 
1.25 	subdivision 3; 125A.10; 125A.515, subdivision 2.
1.26 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.27 	ARTICLE 1
1.28 	GENERAL EDUCATION

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

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

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

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

4.11 	Sec. 5. Minnesota Statutes 2004, section 124D.02, subdivision 4, is amended to read:
4.12 		Subd. 4.Part-time student fee. Notwithstanding the provisions of sections  
4.13 	120A.20 and  123B.37, a board may charge a part-time student enrolled pursuant to 
4.14 	subdivision 2 a reasonable fee for a class or program. 

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

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

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

6.20 	Sec. 9. Minnesota Statutes 2004, section 126C.10, subdivision 6, is amended to read:
6.21 		Subd. 6.Definitions. The definitions in this subdivision apply only to subdivisions 
6.22 	7 and 8.
6.23 	(a) "High school" means a public secondary school, except a charter school under 
6.24 	section 124D.10, that has pupils enrolled in at least the 10th, 11th, and 12th grades. If 
6.25 	there is no secondary high school in the district that has pupils enrolled in at least the 
6.26 	10th, 11th, and 12th grades, and the school is at least 19 miles from the next nearest 
6.27 	school, the commissioner must designate one school in the district as a high school for the 
6.28 	purposes of this section.
6.29 	(b) "Secondary average daily membership" means, for a district that has only one 
6.30 	high school, the average daily membership of pupils served in grades 7 through 12. For a 
6.31 	district that has more than one high school, "secondary average daily membership" for 
6.32 	each high school means the product of the average daily membership of pupils served in 
6.33 	grades 7 through 12 in the high school, times the ratio of six to the number of grades 
6.34 	in the high school.
7.1 	(c) "Attendance area" means the total surface area of the district, in square miles, 
7.2 	divided by the number of high schools in the district. For a district that does not operate 
7.3 	a high school and is less than 19 miles from the nearest operating high school, the 
7.4 	attendance area equals zero.
7.5 	(d) "Isolation index" for a high school means the square root of 55 percent of the 
7.6 	attendance area plus the distance in miles, according to the usually traveled routes, 
7.7 	between the high school and the nearest high school. For a district in which there is located 
7.8 	land defined in section  84A.01,  84A.20, or  84A.31, the distance in miles is the sum of: 
7.9 	(1) the square root of one-half of the attendance area; and
7.10 	(2) the distance from the border of the district to the nearest high school.
7.11 	(e) "Qualifying high school" means a high school that has an isolation index greater 
7.12 	than 23 and that has secondary average daily membership of less than 400.
7.13 	(f) "Qualifying elementary school" means an a public elementary school, except a 
7.14 	charter school under section 124D.10, that is located 19 miles or more from the nearest 
7.15 	elementary school or from the nearest elementary school within the district and, in either 
7.16 	case, has an elementary average daily membership of an average of 20 or fewer per grade.
7.17 	(g) "Elementary average daily membership" means, for a district that has only 
7.18 	one elementary school, the average daily membership of pupils served in kindergarten 
7.19 	through grade 6. For a district that has more than one elementary school, "average daily 
7.20 	membership" for each school means the average daily membership of pupils served in 
7.21 	kindergarten through grade 6 multiplied by the ratio of seven to the number of grades 
7.22 	in the elementary school.

7.23 	Sec. 10. Minnesota Statutes 2005 Supplement, section 126C.43, subdivision 2, is 
7.24 	amended to read:
7.25 		Subd. 2.Payment to unemployment insurance program trust fund by state 
7.26 	and political subdivisions. (a) A district may levy the amount necessary (i) (1) to pay 
7.27 	the district's obligations under section 268.052, subdivision 1, and (ii) (2) to pay for job 
7.28 	placement services offered to employees who may become eligible for benefits pursuant 
7.29 	to section 268.085 for the fiscal year the levy is certified.
7.30 	(b) Districts with a balance remaining in their reserve for reemployment as of June 
7.31 	30, 2003, may not expend the reserved funds for future reemployment expenditures. Each 
7.32 	year a levy reduction must be made to return these funds to taxpayers. The amount of 
7.33 	the levy reduction must be equal to the lesser of: (1) the remaining reserved balance for 
7.34 	reemployment, or (2) the amount of the district's current levy under paragraph (a).

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

8.1 	Sec. 11. Minnesota Statutes 2004, section 126C.44, is amended to read:
8.2 	126C.44 SAFE SCHOOLS LEVY.
8.3 	Each district may make a levy on all taxable property located within the district for 
8.4 	the purposes specified in this section. The maximum amount which may be levied for all 
8.5 	costs under this section shall be equal to $27 multiplied by the district's adjusted marginal 
8.6 	cost pupil units for the school year. The proceeds of the levy must be reserved and used 
8.7 	for directly funding the following purposes or for reimbursing the cities and counties who 
8.8 	contract with the district for the following purposes: (1) to pay the costs incurred for the 
8.9 	salaries, benefits, and transportation costs of peace officers and sheriffs for liaison in 
8.10 	services in the district's schools; (2) to pay the costs for a drug abuse prevention program 
8.11 	as defined in section  609.101, subdivision 3, paragraph (e), in the elementary schools; (3) 
8.12 	to pay the costs for a gang resistance education training curriculum in the district's schools; 
8.13 	(4) to pay the costs for security in the district's schools and on school property; or (5) to 
8.14 	pay the costs for other crime prevention, drug abuse, student and staff safety, and violence 
8.15 	prevention measures taken by the school district. For expenditures under clause (1), the 
8.16 	district must initially attempt to contract for services to be provided by peace officers or 
8.17 	sheriffs with the police department of each city or the sheriff's department of the county 
8.18 	within the district containing the school receiving the services. If a local police department 
8.19 	or a county sheriff's department does not wish to provide the necessary services, the 
8.20 	district may contract for these services with any other police or sheriff's department 
8.21 	located entirely or partially within the school district's boundaries. The levy authorized 
8.22 	under this section is not included in determining the school district's levy limitations.

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

8.24 	Sec. 12. Minnesota Statutes 2005 Supplement, section 127A.45, subdivision 10, 
8.25 	is amended to read:
8.26 		Subd. 10.Payments to school nonoperating funds. Each fiscal year state general 
8.27 	fund payments for a district nonoperating fund must be made at the current year aid 
8.28 	payment percentage of the estimated entitlement during the fiscal year of the entitlement. 
8.29 	This amount shall be paid in 12 equal monthly installments. The amount of the actual 
8.30 	entitlement, after adjustment for actual data, minus the payments made during the fiscal 
8.31 	year of the entitlement must be paid prior to October 31 of the following school year. The 
8.32 	commissioner may make advance payments of debt service equalization aid and state-paid 
8.33 	tax credits  for a district's debt service fund earlier than would occur under the preceding 
8.34 	schedule if the district submits evidence showing a serious cash flow problem in the fund. 
9.1 	The commissioner may make earlier payments during the year and, if necessary, increase 
9.2 	the percent of the entitlement paid to reduce the cash flow problem.

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

9.4 	Sec. 13.  REPEALER.
 9.5 	Minnesota Statutes 2004, section 120A.20, subdivision 3, is repealed.

9.6 	ARTICLE 2
9.7 	EDUCATION EXCELLENCE

9.8 	Section 1. Minnesota Statutes 2004, section 120A.22, subdivision 3, is amended to 
9.9 	read:
9.10 		Subd. 3.Parent defined; residency determined. (a) In this section and sections  
9.11 	120A.24 and  120A.26, "parent" means a parent, guardian, or other person having legal 
9.12 	custody of a child. 
9.13 	(b) In sections  125A.03 to  125A.24 and  125A.65, "parent" means a parent, guardian, 
9.14 	or other person having legal custody of a child under age 18. For an unmarried pupil age 
9.15 	18 or over, "parent" means the pupil unless a guardian or conservator has been appointed, 
9.16 	in which case it means the guardian or conservator. 
9.17 	(c) For purposes of sections  125A.03 to  125A.24 and  125A.65, the school district of 
9.18 	residence for an unmarried pupil age 18 or over who is a parent under paragraph (b) and 
9.19 	who is placed in a center for care and treatment, shall be the school district in which the 
9.20 	pupil's biological or adoptive parent or designated guardian resides. 
9.21 	(d) For a married pupil age 18 or over, the school district of residence is the school 
9.22 	district in which the married pupil resides.
9.23 	(e) If a district reasonably believes that a student does not meet the residency 
9.24 	requirements of the school district in which the student is attending school, the student 
9.25 	may be removed from the school only after the district sends the student's parents written 
9.26 	notice of the district's belief, including the facts upon which the belief is based, and an 
9.27 	opportunity to provide documentary evidence of residency in person to the superintendent 
9.28 	or designee, or, at the option of the parents, by sending the documentary evidence to the 
9.29 	superintendent, or a designee, who will then make a determination as to the residency 
9.30 	status of the student.

9.31 	Sec. 2. Minnesota Statutes 2005 Supplement, section 120B.021, subdivision 1a, 
9.32 	is amended to read:
10.1 		Subd. 1a.Rigorous course of study; waiver. (a) Upon receiving a student's 
10.2 	application signed by the student's parent or guardian, a school district, area learning 
10.3 	center, or charter school must declare that a student meets or exceeds a specific academic 
10.4 	standard required for graduation under this section if the local school board, the school 
10.5 	board of the school district in which the area learning center is located, or the charter 
10.6 	school board of directors determines that the student:
10.7 	(1) is participating in a course of study, including an advanced placement or 
10.8 	international baccalaureate course or program; a learning opportunity outside the 
10.9 	curriculum of the district, area learning center, or charter school; or an approved 
10.10 	preparatory program for employment or postsecondary education that is equally or more 
10.11 	rigorous than the corresponding state or local academic standard required by the district, 
10.12 	area learning center, or charter school;
10.13 	(2) would be precluded from participating in the rigorous course of study, learning 
10.14 	opportunity, or preparatory employment or postsecondary education program if the student 
10.15 	were required to achieve the academic standard to be waived; and
10.16 	(3) satisfactorily completes the requirements for the rigorous course of study, 
10.17 	learning opportunity, or preparatory employment or postsecondary education program.
10.18 	Consistent with the requirements of this section, the local school board, the school board 
10.19 	of the school district in which the area learning center is located, or the charter school 
10.20 	board of directors also may formally determine other circumstances in which to declare 
10.21 	that a student meets or exceeds a specific academic standard that the site requires for 
10.22 	graduation under this section.
10.23 	(b) A student who satisfactorily completes a postsecondary enrollment options 
10.24 	course or program under section 124D.09, or an advanced placement or international 
10.25 	baccalaureate course or program under section 120B.13, is not required to complete other 
10.26 	requirements of the academic standards corresponding to that specific rigorous course 
10.27 	of study.

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

10.29 	Sec. 3. Minnesota Statutes 2004, section 120B.023, is amended to read:
10.30 	120B.023 BENCHMARKS.
10.31 		Subdivision 1.Benchmarks implement, supplement statewide academic 
10.32 	standards. (a) The commissioner must supplement required state academic standards with 
10.33 	grade-level benchmarks. High school benchmarks may cover more than one grade. The 
10.34 	benchmarks must implement statewide academic standards by specifying the academic 
11.1 	knowledge and skills that schools must offer and students must achieve to satisfactorily 
11.2 	complete a state standard. The commissioner must publish benchmarks are published to 
11.3 	inform and guide parents, teachers, school districts, and other interested persons and for to
11.4 	use in developing tests consistent with the benchmarks.
11.5 	(b) The commissioner shall publish benchmarks in the State Register and transmit 
11.6 	the benchmarks in any other manner that makes them accessible to the general public. The 
11.7 	commissioner may charge a reasonable fee for publications.
11.8 	(c) Once established, the commissioner may change the benchmarks only with 
11.9 	specific legislative authorization and after completing a review under paragraph (d)
11.10 	subdivision 2.
11.11 	(d) The commissioner must develop and implement a system for reviewing on 
11.12 	a four-year cycle each of the required academic standards and related benchmarks and 
11.13 	elective standards beginning in the 2006-2007 school year on a periodic cycle, consistent 
11.14 	with subdivision 2.
11.15 	(e) The benchmarks are not subject to chapter 14 and section  14.386 does not apply. 
11.16 		Subd. 2.Revisions and reviews required. (a) The commissioner of education must 
11.17 	revise and appropriately embed technology and information literacy standards consistent 
11.18 	with recommendations from school media specialists into the state's academic standards 
11.19 	and graduation requirements and implement a review cycle for state academic standards 
11.20 	and related benchmarks, consistent with this subdivision. During each review cycle, the 
11.21 	commissioner also must examine the alignment of each required academic standard and 
11.22 	related benchmark with the knowledge and skills students need for college readiness and 
11.23 	advanced work in the particular subject area.
11.24 	(b) The commissioner in the 2006-2007 school year must revise and align the state's 
11.25 	academic standards and high school graduation requirements in mathematics to require 
11.26 	that students satisfactorily complete the revised mathematics standards, beginning in the 
11.27 	2010-2011 school year. Under the revised standards:
11.28 	(1) students must satisfactorily complete an algebra I credit by the end of eighth 
11.29 	grade; and
11.30 	(2) students scheduled to graduate in the 2014-2015 school year or later must 
11.31 	satisfactorily complete an algebra II credit or its equivalent.
11.32 	The commissioner also must ensure that the statewide mathematics assessments 
11.33 	administered to students in grades 3 through 8 and 11 beginning in the 2010-2011 
11.34 	school year are aligned with the state academic standards in mathematics. The statewide 
11.35 	11th grade mathematics test administered to students under clause (2) beginning in 
11.36 	the 2013-2014 school year must include algebra II test items that are aligned with 
12.1 	corresponding state academic standards in mathematics. The commissioner must 
12.2 	implement a review of the academic standards and related benchmarks in mathematics 
12.3 	beginning in the 2015-2016 school year.
12.4 	(c) The commissioner in the 2007-2008 school year must revise and align the state's 
12.5 	academic standards and high school graduation requirements in the arts to require that 
12.6 	students satisfactorily complete the revised arts standards beginning in the 2010-2011 
12.7 	school year. The commissioner must implement a review of the academic standards and 
12.8 	related benchmarks in arts beginning in the 2016-2017 school year.
12.9 	(d) The commissioner in the 2008-2009 school year must revise and align the state's 
12.10 	academic standards and high school graduation requirements in science to require that 
12.11 	students satisfactorily complete the revised science standards, beginning in the 2011-2012 
12.12 	school year. Under the revised standards, students scheduled to graduate in the 2014-2015 
12.13 	school year or later must satisfactorily complete a chemistry or physics credit. The 
12.14 	commissioner must implement a review of the academic standards and related benchmarks 
12.15 	in science beginning in the 2017-2018 school year.
12.16 	(e) The commissioner in the 2009-2010 school year must revise and align the state's 
12.17 	academic standards and high school graduation requirements in language arts to require 
12.18 	that students satisfactorily complete the revised language arts standards beginning in the 
12.19 	2012-2013 school year. The commissioner must implement a review of the academic 
12.20 	standards and related benchmarks in language arts beginning in the 2018-2019 school year.
12.21 	(f) The commissioner in the 2010-2011 school year must revise and align the state's 
12.22 	academic standards and high school graduation requirements in social studies to require 
12.23 	that students satisfactorily complete the revised social studies standards beginning in the 
12.24 	2013-2014 school year. The commissioner must implement a review of the academic 
12.25 	standards and related benchmarks in social studies beginning in the 2019-2020 school year.
12.26 	(g) School districts and charter schools must revise and align local academic 
12.27 	standards and high school graduation requirements in health, physical education, world 
12.28 	languages, and career and technical education to require students to complete the revised 
12.29 	standards beginning in a school year determined by the school district or charter school. 
12.30 	School districts and charter schools must formally establish a periodic review cycle for 
12.31 	the academic standards and related benchmarks in health, physical education, world 
12.32 	languages, and career and technical education.

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

12.34 	Sec. 4. Minnesota Statutes 2005 Supplement, section 120B.131, subdivision 2, is 
12.35 	amended to read:
13.1 		Subd. 2.Reimbursement for examination fees. The state may reimburse 
13.2 	college-level examination program (CLEP) fees for a Minnesota public or nonpublic
13.3 	high school student who has successfully completed one or more college-level courses 
13.4 	in high school and earned a satisfactory score on one or more CLEP examinations in the 
13.5 	subject matter of each examination in the following subjects: composition and literature, 
13.6 	mathematics and science, social sciences and history, foreign languages, and business and 
13.7 	humanities. The state may reimburse each successful student for up to six examination 
13.8 	fees. The commissioner shall establish application procedures and a process and schedule 
13.9 	for fee reimbursements. The commissioner must give priority to reimburse the CLEP 
13.10 	examination fees of students of low-income families.

13.11 	Sec. 5. Minnesota Statutes 2004, section 123B.77, subdivision 3, is amended to read:
13.12 		Subd. 3.Statement for comparison and correction. (a) By November 30 of the 
13.13 	calendar year of the submission of the unaudited financial data, the district must provide to 
13.14 	the commissioner audited financial data for the preceding fiscal year. The audit must be 
13.15 	conducted in compliance with generally accepted governmental auditing standards, the 
13.16 	federal Single Audit Act, and the Minnesota legal compliance guide issued by the Office 
13.17 	of the State Auditor. An audited financial statement prepared in a form which will allow 
13.18 	comparison with and correction of material differences in the unaudited financial data 
13.19 	shall be submitted to the commissioner and the state auditor by December 31. The audited 
13.20 	financial statement must also provide a statement of assurance pertaining to uniform 
13.21 	financial accounting and reporting standards compliance and a copy of the management 
13.22 	letter submitted to the district by the school district's auditor.
13.23 	(b) By January 15 of the calendar year following the submission of the unaudited 
13.24 	financial data, the commissioner shall convert the audited financial data required by this 
13.25 	subdivision into the consolidated financial statement format required under subdivision 1a 
13.26 	and publish the information on the department's Web site.

13.27 	EFFECTIVE DATE. This section is effective for financial statements prepared in 
13.28 	2006 and later.

13.29 	Sec. 6. Minnesota Statutes 2004, section 123B.91, is amended by adding a subdivision 
13.30 	to read:
13.31 		Subd. 1a.Compliance by nonpublic and charter school students. A nonpublic or 
13.32 	charter school student transported by a public school district shall comply with student bus 
13.33 	conduct and student bus discipline policies of the transporting public school district.

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

14.2 	Sec. 7. Minnesota Statutes 2005 Supplement, section 123B.92, subdivision 1, is 
14.3 	amended to read:
14.4 		Subdivision 1.Definitions. For purposes of this section and section 125A.76, the 
14.5 	terms defined in this subdivision have the meanings given to them.
14.6 	(a) "Actual expenditure per pupil transported in the regular and excess transportation 
14.7 	categories" means the quotient obtained by dividing:
14.8 	(1) the sum of:
14.9 	(i) all expenditures for transportation in the regular category, as defined in paragraph 
14.10 	(b), clause (1), and the excess category, as defined in paragraph (b), clause (2), plus
14.11 	(ii) an amount equal to one year's depreciation on the district's school bus fleet 
14.12 	and mobile units computed on a straight line basis at the rate of 15 percent per year for 
14.13 	districts operating a program under section 124D.128 for grades 1 to 12 for all students in 
14.14 	the district and 12-1/2 percent per year for other districts of the cost of the fleet, plus
14.15 	(iii) an amount equal to one year's depreciation on the district's type three school 
14.16 	buses, as defined in section 169.01, subdivision 6, clause (5), which must be used a 
14.17 	majority of the time for pupil transportation purposes, computed on a straight line basis at 
14.18 	the rate of 20 percent per year of the cost of the type three school buses by:
14.19 	(2) the number of pupils eligible for transportation in the regular category, as defined 
14.20 	in paragraph (b), clause (1), and the excess category, as defined in paragraph (b), clause (2).
14.21 	(b) "Transportation category" means a category of transportation service provided to 
14.22 	pupils as follows:
14.23 	(1) Regular transportation is:
14.24 	(i) transportation to and from school during the regular school year for resident 
14.25 	elementary pupils residing one mile or more from the public or nonpublic school they 
14.26 	attend, and resident secondary pupils residing two miles or more from the public 
14.27 	or nonpublic school they attend, excluding desegregation transportation and noon 
14.28 	kindergarten transportation; but with respect to transportation of pupils to and from 
14.29 	nonpublic schools, only to the extent permitted by sections 123B.84 to 123B.87;
14.30 	(ii) transportation of resident pupils to and from language immersion programs;
14.31 	(iii) transportation of a pupil who is a custodial parent and that pupil's child between 
14.32 	the pupil's home and the child care provider and between the provider and the school, if 
14.33 	the home and provider are within the attendance area of the school;
14.34 	(iv) transportation to and from or board and lodging in another district, of resident 
14.35 	pupils of a district without a secondary school; and
15.1 	(v) transportation to and from school during the regular school year required under 
15.2 	subdivision 3 for nonresident elementary pupils when the distance from the attendance 
15.3 	area border to the public school is one mile or more, and for nonresident secondary pupils 
15.4 	when the distance from the attendance area border to the public school is two miles or 
15.5 	more, excluding desegregation transportation and noon kindergarten transportation.
15.6 	For the purposes of this paragraph, a district may designate a licensed day care 
15.7 	facility, school day care facility, respite care facility, the residence of a relative, or the 
15.8 	residence of a person chosen by the pupil's parent or guardian as the home of a pupil for 
15.9 	part or all of the day, if requested by the pupil's parent or guardian, and if that facility or 
15.10 	residence is within the attendance area of the school the pupil attends.
15.11 	(2) Excess transportation is:
15.12 	(i) transportation to and from school during the regular school year for resident 
15.13 	secondary pupils residing at least one mile but less than two miles from the public or 
15.14 	nonpublic school they attend, and transportation to and from school for resident pupils 
15.15 	residing less than one mile from school who are transported because of extraordinary 
15.16 	traffic, drug, or crime hazards; and
15.17 	(ii) transportation to and from school during the regular school year required under 
15.18 	subdivision 3 for nonresident secondary pupils when the distance from the attendance area 
15.19 	border to the school is at least one mile but less than two miles from the public school 
15.20 	they attend, and for nonresident pupils when the distance from the attendance area border 
15.21 	to the school is less than one mile from the school and who are transported because of 
15.22 	extraordinary traffic, drug, or crime hazards.
15.23 	(3) Desegregation transportation is transportation within and outside of the district 
15.24 	during the regular school year of pupils to and from schools located outside their normal 
15.25 	attendance areas under a plan for desegregation mandated by the commissioner or under 
15.26 	court order.
15.27 	(4) "Transportation services for pupils with disabilities" is:
15.28 	(i) transportation of pupils with disabilities who cannot be transported on a regular 
15.29 	school bus between home or a respite care facility and school;
15.30 	(ii) necessary transportation of pupils with disabilities from home or from school to 
15.31 	other buildings, including centers such as developmental achievement centers, hospitals, 
15.32 	and treatment centers where special instruction or services required by sections 125A.03
15.33 	to 125A.24, 125A.26 to 125A.48, and 125A.65 are provided, within or outside the district 
15.34 	where services are provided;
15.35 	(iii) necessary transportation for resident pupils with disabilities required by sections 
15.36 	125A.12, and 125A.26 to 125A.48;
16.1 	(iv) board and lodging for pupils with disabilities in a district maintaining special 
16.2 	classes;
16.3 	(v) transportation from one educational facility to another within the district for 
16.4 	resident pupils enrolled on a shared-time basis in educational programs, and necessary 
16.5 	transportation required by sections 125A.18, and 125A.26 to 125A.48, for resident pupils 
16.6 	with disabilities who are provided special instruction and services on a shared-time basis 
16.7 	or if resident pupils are not transported, the costs of necessary travel between public 
16.8 	and private schools or neutral instructional sites by essential personnel employed by the 
16.9 	district's program for children with a disability;
16.10 	(vi) transportation for resident pupils with disabilities to and from board and lodging 
16.11 	facilities when the pupil is boarded and lodged for educational purposes; and
16.12 	(vii) services described in clauses (i) to (vi), when provided for pupils with 
16.13 	disabilities in conjunction with a summer instructional program that relates to the pupil's 
16.14 	individual education plan or in conjunction with a learning year program established 
16.15 	under section 124D.128.
16.16 	For purposes of computing special education base revenue under section 125A.76, 
16.17 	subdivision 2, the cost of providing transportation for children with disabilities includes 
16.18 	(A) the additional cost of transporting a homeless student from a temporary nonshelter 
16.19 	home in another district to the school of origin, or a formerly homeless student from a 
16.20 	permanent home in another district to the school of origin but only through the end of the 
16.21 	academic year; and (B) depreciation on district-owned school buses purchased after July 1, 
16.22 	2005, and used primarily for transportation of pupils with disabilities, calculated according 
16.23 	to paragraph (a), clauses (ii) and (iii). Depreciation costs included in the disabled 
16.24 	transportation category must be excluded in calculating the actual expenditure per pupil 
16.25 	transported in the regular and excess transportation categories according to paragraph (a).
16.26 	(5) "Nonpublic nonregular transportation" is:
16.27 	(i) transportation from one educational facility to another within the district for 
16.28 	resident pupils enrolled on a shared-time basis in educational programs, excluding 
16.29 	transportation for nonpublic pupils with disabilities under clause (4);
16.30 	(ii) transportation within district boundaries between a nonpublic school and a 
16.31 	public school or a neutral site for nonpublic school pupils who are provided pupil support 
16.32 	services pursuant to section 123B.44; and
16.33 	(iii) late transportation home from school or between schools within a district for 
16.34 	nonpublic school pupils involved in after-school activities.
16.35 	(c) "Mobile unit" means a vehicle or trailer designed to provide facilities for 
16.36 	educational programs and services, including diagnostic testing, guidance and counseling 
17.1 	services, and health services. A mobile unit located off nonpublic school premises is a 
17.2 	neutral site as defined in section 123B.41, subdivision 13.

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

17.4 	Sec. 8. Minnesota Statutes 2005 Supplement, section 123B.92, subdivision 5, is 
17.5 	amended to read:
17.6 		Subd. 5.District reports. (a) Each district must report data to the department as 
17.7 	required by the department to account for transportation expenditures.
17.8 	(b) Salaries and fringe benefits of district employees whose primary duties are 
17.9 	other than transportation, including central office administrators and staff, building 
17.10 	administrators and staff, teachers, social workers, school nurses, and instructional aides, 
17.11 	must not be included in a district's transportation expenditures, except that a district may 
17.12 	include salaries and benefits according to paragraph (c) for (1) an employee designated 
17.13 	as the district transportation director, (2) an employee providing direct support to the 
17.14 	transportation director, or (3) an employee providing direct transportation services such as 
17.15 	a bus driver or bus aide.
17.16 	(c) Salaries and fringe benefits of other the district employees listed in paragraph 
17.17 	(b), clauses (1), (2), and (3), who work part time in transportation and part time in other 
17.18 	areas must not be included in a district's transportation expenditures unless the district 
17.19 	maintains documentation of the employee's time spent on pupil transportation matters in 
17.20 	the form and manner prescribed by the department.
17.21 	(d) Pupil transportation expenditures, excluding expenditures for capital outlay, 
17.22 	leased buses, student board and lodging, crossing guards, and aides on buses, must 
17.23 	be allocated among transportation categories based on cost-per-mile, cost-per-student, 
17.24 	cost-per-hour, or cost-per-route, regardless of whether the transportation services are 
17.25 	provided on district-owned or contractor-owned school buses. Expenditures for school 
17.26 	bus driver salaries and fringe benefits may either be directly charged to the appropriate 
17.27 	transportation category or may be allocated among transportation categories based 
17.28 	on cost-per-mile, cost-per-student, cost-per-hour, or cost-per-route. Expenditures 
17.29 	by private contractors or individuals who provide transportation exclusively in one 
17.30 	transportation category must be charged directly to the appropriate transportation category. 
17.31 	Transportation services provided by contractor-owned school bus companies incorporated 
17.32 	under different names but owned by the same individual or group of individuals must be 
17.33 	treated as the same company for cost allocation purposes.

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

18.1 	Sec. 9. Minnesota Statutes 2005 Supplement, section 124D.095, subdivision 4, is 
18.2 	amended to read:
18.3 		Subd. 4.Online learning parameters. (a) An online learning student must receive 
18.4 	academic credit for completing the requirements of an online learning course or program. 
18.5 	Secondary credits granted to an online learning student must be counted toward the 
18.6 	graduation and credit requirements of the enrolling district. The enrolling district must 
18.7 	apply the same graduation requirements to all students, including online learning students, 
18.8 	and must continue to provide nonacademic services to online learning students. If a 
18.9 	student completes an online learning course or program that meets or exceeds a graduation 
18.10 	standard or grade progression requirement at the enrolling district, that standard or 
18.11 	requirement is met. The enrolling district must use the same criteria for accepting online 
18.12 	learning credits or courses as it does for accepting credits or courses for transfer students 
18.13 	under section 124D.03, subdivision 9. The enrolling district may reduce the teacher 
18.14 	contact time of an online learning student in proportion to the number of online learning 
18.15 	courses the student takes from an online learning provider that is not the enrolling district.
18.16 	(b) An online learning student may:
18.17 	(1) enroll during a single school year in a maximum of 12 semester-long courses or 
18.18 	their equivalent delivered by an online learning provider or the enrolling district;
18.19 	(2) complete course work at a grade level that is different from the student's current 
18.20 	grade level; and
18.21 	(3) enroll in additional courses with the online learning provider under a separate 
18.22 	agreement that includes terms for payment of any tuition or course fees.
18.23 	(c) A student with a disability may enroll in an online learning course or program 
18.24 	if the student's IEP team determines that online learning is appropriate education for 
18.25 	the student.
18.26 	(d)(c) An online learning student has the same access to the computer hardware 
18.27 	and education software available in a school as all other students in the enrolling district. 
18.28 	An online learning provider must assist an online learning student whose family qualifies 
18.29 	for the education tax credit under section 290.0674 to acquire computer hardware and 
18.30 	educational software for online learning purposes.
18.31 	(e)(d) An enrolling district may offer online learning to its enrolled students. 
18.32 	Such online learning does not generate online learning funds under this section. An 
18.33 	enrolling district that offers online learning only to its enrolled students is not subject 
18.34 	to the reporting requirements or review criteria under subdivision 7. A teacher with a 
18.35 	Minnesota license must assemble and deliver instruction to enrolled students receiving 
18.36 	online learning from an enrolling district. The delivery of instruction occurs when the 
19.1 	student interacts with the computer or the teacher and receives ongoing assistance and 
19.2 	assessment of learning. The instruction may include curriculum developed by persons 
19.3 	other than a teacher with a Minnesota license.
19.4 	(f)(e) An online learning provider that is not the enrolling district is subject to 
19.5 	the reporting requirements and review criteria under subdivision 7. A teacher with a 
19.6 	Minnesota license must assemble and deliver instruction to online learning students. The 
19.7 	delivery of instruction occurs when the student interacts with the computer or the teacher 
19.8 	and receives ongoing assistance and assessment of learning. The instruction may include 
19.9 	curriculum developed by persons other than a teacher with a Minnesota license. Unless 
19.10 	the commissioner grants a waiver, a teacher providing online learning instruction must not 
19.11 	instruct more than 40 students in any one online learning course or program.

19.12 	Sec. 10. Minnesota Statutes 2004, section 124D.096, is amended to read:
19.13 	124D.096 ON-LINE LEARNING AID.
19.14 	(a) The on-line learning aid for an on-line learning provider equals the product 
19.15 	of the adjusted on-line learning average daily membership for students under section  
19.16 	124D.095, subdivision 8, paragraph (d), times the student grade level weighting under 
19.17 	section  126C.05, subdivision 1, times the formula allowance. 
19.18 	(b) Notwithstanding section  127A.45, the department must pay each on-line learning 
19.19 	provider 80 percent of the current year aid payment percentage multiplied by the amount 
19.20 	in paragraph (a) within 45 days of receiving final enrollment and course completion 
19.21 	information each quarter or semester. A final payment equal to 20 percent of the amount in 
19.22 	paragraph (a) The final adjustment payment must be the amount of the actual entitlement, 
19.23 	after adjustment for actual data, minus the payments made during the fiscal year of the 
19.24 	entitlement. This payment must be made on September 30 of the next fiscal year. 

19.25 	Sec. 11. Minnesota Statutes 2004, section 124D.10, subdivision 16, is amended to read:
19.26 		Subd. 16.Transportation. (a) By July 1 of eachyear, a charter schoolA charter 
19.27 	school after its first fiscal year of operation by March 1 of each fiscal year and a charter 
19.28 	school by July 1 of its first fiscal year of operation must notify the district in which the 
19.29 	school is located and the Department of Education if it will provide transportation for 
19.30 	pupils enrolled in the school its own transportation or use the transportation services of the 
19.31 	district in which it is located for the fiscal year.
19.32 	(b) If a charter school elects to provide transportation for pupils, the transportation 
19.33 	must be provided by the charter school within the district in which the charter school is 
20.1 	located. The state must pay transportation aid to the charter school according to section  
20.2 	124D.11, subdivision 2. 
20.3 	For pupils who reside outside the district in which the charter school is located, the 
20.4 	charter school is not required to provide or pay for transportation between the pupil's 
20.5 	residence and the border of the district in which the charter school is located. A parent 
20.6 	may be reimbursed by the charter school for costs of transportation from the pupil's 
20.7 	residence to the border of the district in which the charter school is located if the pupil is 
20.8 	from a family whose income is at or below the poverty level, as determined by the federal 
20.9 	government. The reimbursement may not exceed the pupil's actual cost of transportation 
20.10 	or 15 cents per mile traveled, whichever is less. Reimbursement may not be paid for 
20.11 	more than 250 miles per week.
20.12 	At the time a pupil enrolls in a charter school, the charter school must provide the 
20.13 	parent or guardian with information regarding the transportation.
20.14 	(c) If a charter school does not elect to provide transportation, transportation for 
20.15 	pupils enrolled at the school must be provided by the district in which the school is 
20.16 	located, according to sections  123B.88, subdivision 6, and  124D.03, subdivision 8, for a 
20.17 	pupil residing in the same district in which the charter school is located. Transportation 
20.18 	may be provided by the district in which the school is located, according to sections  
20.19 	123B.88, subdivision 6, and  124D.03, subdivision 8, for a pupil residing in a different 
20.20 	district. If the district provides the transportation, the scheduling of routes, manner and 
20.21 	method of transportation, control and discipline of the pupils, and any other matter relating 
20.22 	to the transportation of pupils under this paragraph shall be within the sole discretion, 
20.23 	control, and management of the district. 

20.24 	Sec. 12. Minnesota Statutes 2004, section 124D.11, subdivision 9, is amended to read:
20.25 		Subd. 9.Payment of aids to charter schools. (a) Notwithstanding section  127A.45, 
20.26 	subdivision 3, aid payments for the current fiscal year to a charter school not in its first 
20.27 	year of operation shall be of an equal amount on each of the 23 payment dates. A charter 
20.28 	school in its first year of operation shall receive, on its first payment date, ten percent of its 
20.29 	cumulative amount guaranteed for the year and 22 payments of an equal amount thereafter 
20.30 	the sum of which shall be 90 percent of equal the current year aid payment percentage 
20.31 	multiplied by the cumulative amount guaranteed. 
20.32 	(b) Notwithstanding paragraph (a), for a charter school ceasing operation prior to the 
20.33 	end of a school year, 80 percent of the current year aid payment percentage multiplied by 
20.34 	 the amount due for the school year may be paid to the school after audit of prior fiscal year 
20.35 	and current fiscal year pupil counts. For a charter school ceasing operations prior to, or at 
21.1 	the end of, a school year, notwithstanding section 127A.45, subdivision 3, preliminary 
21.2 	final payments may be made after audit of pupil counts, monitoring of special education 
21.3 	expenditures, and documentation of lease expenditures for the final year of operation. 
21.4 	Final payment may be made upon receipt of audited financial statements under section 
21.5 	123B.77, subdivision 3.
21.6 	(c) Notwithstanding section  127A.45, subdivision 3, and paragraph (a), 80 percent 
21.7 	of the start-up cost aid under subdivision 8 shall be paid within 45 days after the first day 
21.8 	of student attendance for that school year. 
21.9 	(d) In order to receive state aid payments under this subdivision, a charter school in 
21.10 	its first three years of operation must submit a school calendar in the form and manner 
21.11 	requested by the department and a quarterly report to the Department of Education. The 
21.12 	report must list each student by grade, show the student's start and end dates, if any, 
21.13 	with the charter school, and for any student participating in a learning year program, 
21.14 	the report must list the hours and times of learning year activities. The report must be 
21.15 	submitted not more than two weeks after the end of the calendar quarter to the department. 
21.16 	The department must develop a Web-based reporting form for charter schools to use 
21.17 	when submitting enrollment reports. A charter school in its fourth and subsequent year of 
21.18 	operation must submit a school calendar and enrollment information to the department in 
21.19 	the form and manner requested by the department.
21.20 	(e) Notwithstanding sections 317A.701 to 317A.791, upon closure of a charter 
21.21 	school and satisfaction of creditors, cash and investment balances remaining shall be 
21.22 	returned to the state.

21.23 	Sec. 13. Minnesota Statutes 2004, section 124D.61, is amended to read:
21.24 	124D.61 GENERAL REQUIREMENTS FOR PROGRAMS.
21.25 	A district which receives aid pursuant to section  124D.65 must comply with that 
21.26 	enrolls one or more children of limited English proficiency must implement an educational 
21.27 	program that includes at a minimum the following program requirements: 
21.28 	(1) identification and reclassification criteria for children of limited English 
21.29 	proficiency and program entrance and exit criteria for children with limited English 
21.30 	proficiency must be documented by the district, applied uniformly to children of limited 
21.31 	English proficiency, and made available to parents and other stakeholders upon request;
21.32 	(2) a written plan of services that describes programming by English proficiency 
21.33 	level made available to parents upon request. The plan must articulate the amount and 
21.34 	scope of service offered to children of limited English proficiency through an educational 
21.35 	program for children of limited English proficiency;
22.1 	(3) professional development opportunities for ESL, bilingual education, 
22.2 	mainstream, and all staff working with children of limited English proficiency which are: 
22.3 	(i) coordinated with the district's professional development activities; (ii) related to the 
22.4 	needs of children of limited English proficiency; and (iii) ongoing;
22.5 	(4) to the extent possible, the district must avoid isolating children of limited English 
22.6 	proficiency for a substantial part of the school day; and
22.7 	(2) (5) in predominantly nonverbal subjects, such as art, music, and physical 
22.8 	education, permit pupils of limited English proficiency shall be permitted to participate 
22.9 	fully and on an equal basis with their contemporaries in public school classes provided 
22.10 	for these subjects. To the extent possible, the district must assure to pupils enrolled in a 
22.11 	program for limited English proficient students an equal and meaningful opportunity to 
22.12 	participate fully with other pupils in all extracurricular activities.

22.13 	Sec. 14. Minnesota Statutes 2004, section 125A.02, subdivision 1, is amended to read:
22.14 		Subdivision 1.Child with a disability. Every child who has a hearing impairment, 
22.15 	blindness, visual disability, speech or language impairment, physical handicap, other 
22.16 	health impairment, mental handicap, emotional/behavioral disorder, specific learning 
22.17 	disability, autism, traumatic brain injury, multiple disabilities, or deaf/blind disability and 
22.18 	needs special instruction and services, as determined by the standards of the commissioner, 
22.19 	is a child with a disability. In addition, every child under age three, and at local district 
22.20 	discretion from age three to age seven, who needs special instruction and services, as 
22.21 	determined by the standards of the commissioner, because the child has a substantial delay 
22.22 	or has an identifiable physical or mental condition known to hinder normal development is 
22.23 	a child with a disability.

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

22.25 	Sec. 15. Laws 2005, First Special Session chapter 5, article 2, section 84, subdivision 
22.26 	13, is amended to read:
22.27 	
22.28 	Subd. 13.  Examination fees; teacher training and support programs. (a) For 
22.29 	students' advanced placement and  international baccalaureate examination fees under 
22.30 	Minnesota  Statutes, section 120B.13, subdivision 3, and the training and  related costs 
22.31 	for teachers and other interested educators under  Minnesota Statutes, section 120B.13, 
22.32 	subdivision 1:  

23.1		$
	4,500,000
	.....
	2006
	
23.2		$
	4,500,000
	.....
	2007
	
23.3 	(b) The advanced placement program shall receive 75 percent  of the appropriation 
23.4 	each year and the international  baccalaureate program shall receive 25 percent of the  
23.5 	appropriation each year.  The department, in consultation with  representatives of the 
23.6 	advanced placement and international  baccalaureate programs selected by the Advanced 
23.7 	Placement  Advisory Council and IBMN, respectively, shall determine the  amounts of 
23.8 	the expenditures each year for examination fees and  training and support programs for 
23.9 	each program.  
23.10 	(c) Notwithstanding Minnesota Statutes, section 120B.13,  subdivision 1, at least 
23.11 	$500,000 each year is for teachers to  attend subject matter summer training programs 
23.12 	and follow-up  support workshops approved by the advanced placement or  international 
23.13 	baccalaureate programs. The amount of the subsidy  for each teacher attending an 
23.14 	advanced placement or  international baccalaureate summer training program or workshop 
23.15 	shall be the same.  The commissioner shall determine the payment  process and the amount 
23.16 	of the subsidy. Teachers shall apply for teacher training scholarships to prepare for 
23.17 	teaching in the advanced placement or international baccalaureate program. Any reserved 
23.18 	funding not expended for teacher training may be used for exam fees and other support 
23.19 	programs for each program.
23.20 	(d) The commissioner shall pay all examination fees for all  students of low-income 
23.21 	families under Minnesota Statutes,  section 120B.13, subdivision 3, and to the extent 
23.22 	of available  appropriations shall also pay examination fees for students  sitting for an 
23.23 	advanced placement examination, international  baccalaureate examination, or both.
23.24 	Any balance in the first year does not cancel but is  available in the second year.  

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

23.26 	Sec. 16. RULE ON VISUALLY IMPAIRED TO INCLUDE REFERENCES TO 
23.27 	"BLIND" AND "BLINDNESS."
 23.28 	The commissioner of education, where appropriate, must incorporate references to 
23.29 	"blind" and "blindness" into the definition of visually impaired under Minnesota Rules, 
23.30 	part 3525.1345, and amend the rule title to include the word "blind."

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

23.32 	Sec. 17. 2006 SCHOOL ACCOUNTABILITY REPORT.
 24.1 	Notwithstanding Minnesota Statutes, section 120B.36, for 2006 reporting only, the 
24.2 	Department of Education may delay the release to the public and the posting of the 2006 
24.3 	school performance report cards and adequate yearly progress data on its public Web 
24.4 	site to no later than November 30, 2006.

24.5 	ARTICLE 3
24.6 	SPECIAL EDUCATION

24.7 	Section 1. Minnesota Statutes 2005 Supplement, section 125A.11, subdivision 1, 
24.8 	is amended to read:
24.9 		Subdivision 1.Nonresident tuition rate; other costs. (a) For fiscal year 2006, 
24.10 	when a school district provides instruction and services outside the district of residence, 
24.11 	board and lodging, and any tuition to be paid, shall be paid by the district of residence. The 
24.12 	tuition rate to be charged for any child with a disability, excluding a pupil for whom tuition 
24.13 	is calculated according to section 127A.47, subdivision 7, paragraph (d), must be the sum 
24.14 	of (1) the actual cost of providing special instruction and services to the child including 
24.15 	a proportionate amount for special transportation and unreimbursed building lease and 
24.16 	debt service costs for facilities used primarily for special education, plus (2) the amount 
24.17 	of general education revenue and referendum aid attributable to the pupil, minus (3) the 
24.18 	amount of special education aid for children with a disability received on behalf of that 
24.19 	child, minus (4) if the pupil receives special instruction and services outside the regular 
24.20 	classroom for more than 60 percent of the school day, the amount of general education 
24.21 	revenue and referendum aid, excluding portions attributable to district and school 
24.22 	administration, district support services, operations and maintenance, capital expenditures, 
24.23 	and pupil transportation, attributable to that pupil for the portion of time the pupil receives 
24.24 	special instruction in and services outside of the regular classroom. If the boards involved 
24.25 	do not agree upon the tuition rate, either board may apply to the commissioner to fix the 
24.26 	rate. Notwithstanding chapter 14, the commissioner must then set a date for a hearing or 
24.27 	request a written statement from each board, giving each board at least ten days' notice, 
24.28 	and after the hearing or review of the written statements the commissioner must make an 
24.29 	order fixing the tuition rate, which is binding on both school districts. General education 
24.30 	revenue and referendum aid attributable to a pupil must be calculated using the resident 
24.31 	district's average general education and referendum revenue per adjusted pupil unit.
24.32 	(b) For fiscal year 2007 and later, when a school district provides special instruction 
24.33 	and services for a pupil with a disability as defined in section 125A.02 outside the district 
24.34 	of residence, excluding a pupil for whom an adjustment to special education aid is 
24.35 	calculated according to section 127A.47, subdivision 7, paragraph (e), special education 
25.1 	aid paid to the resident district must be reduced by an amount equal to (1) the actual 
25.2 	cost of providing special instruction and services to the pupil, including a proportionate 
25.3 	amount for special transportation and unreimbursed building lease and debt service costs 
25.4 	for facilities used primarily for special education, plus (2) the amount of general education 
25.5 	revenue and referendum aid attributable to that pupil, minus (3) the amount of special 
25.6 	education aid for children with a disability received on behalf of that child, minus (4) if the 
25.7 	pupil receives special instruction and services outside the regular classroom for more than 
25.8 	60 percent of the school day, the amount of general education revenue and referendum 
25.9 	aid, excluding portions attributable to district and school administration, district support 
25.10 	services, operations and maintenance, capital expenditures, and pupil transportation, 
25.11 	attributable to that pupil for the portion of time the pupil receives special instruction in
25.12 	and services outside of  the regular classroom. General education revenue and referendum 
25.13 	aid attributable to a pupil must be calculated using the resident district's average general 
25.14 	education revenue and referendum aid per adjusted pupil unit. Special education aid 
25.15 	paid to the district or cooperative providing special instruction and services for the pupil 
25.16 	must be increased by the amount of the reduction in the aid paid to the resident district. 
25.17 	Amounts paid to cooperatives under this subdivision and section 127A.47, subdivision 
25.18 	7, shall be recognized and reported as revenues and expenditures on the resident school 
25.19 	district's books of account under sections 123B.75 and 123B.76. If the resident district's 
25.20 	special education aid is insufficient to make the full adjustment, the remaining adjustment 
25.21 	shall be made to other state aid due to the district.
25.22 	(c) Notwithstanding paragraphs (a) and (b) and section 127A.47, subdivision 7, 
25.23 	paragraphs (d) and (e), a charter school where more than 30 percent of enrolled students 
25.24 	receive special education and related services, an intermediate district, or a special 
25.25 	education cooperative, or a school district that served as the applicant agency for a group 
25.26 	of school districts for federal special education aids for fiscal year 2006 may apply to the 
25.27 	commissioner for authority to charge the resident district an additional amount to recover 
25.28 	any remaining unreimbursed costs of serving pupils with a disability. The application must 
25.29 	include a description of the costs and the calculations used to determine the unreimbursed 
25.30 	portion to be charged to the resident district. Amounts approved by the commissioner 
25.31 	under this paragraph must be included in the tuition billings or aid adjustments under 
25.32 	paragraph (a) or (b), or section 127A.47, subdivision 7, paragraph (d) or (e), as applicable.
25.33 	(d) For purposes of this subdivision and section 127A.47, subdivision 7, paragraphs 
25.34 	(d) and (e), "general education revenue and referendum aid" means the sum of the general 
25.35 	education revenue according to section 126C.10, subdivision 1, excluding alternative 
25.36 	teacher compensation revenue, plus the referendum aid according to section 126C.17, 
26.1 	subdivision 7, as adjusted according to section 127A.47, subdivision 7, paragraphs (a) 
26.2 	to (c).

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

26.4 	Sec. 2. Minnesota Statutes 2004, section 125A.515, subdivision 1, is amended to read:
26.5 		Subdivision 1.Approval of education programs. The commissioner shall 
26.6 	approve education programs for placement of children and youth in care and treatment
26.7 	residential facilities including detention centers, before being licensed by the Department 
26.8 	of Human Services under Minnesota Rules, parts 9545.0905 to 9545.1125 and 9545.1400 
26.9 	to 9545.1480, or the Department of Corrections under Minnesota Rules, chapters 2925, 
26.10 	2930, 2935, and 2950. Education programs in these facilities shall conform to state and 
26.11 	federal education laws including the Individuals with Disabilities Education Act (IDEA).
26.12 	This section applies only to placements in facilities licensed by the Department of Human 
26.13 	Services or the Department of Corrections.

26.14 	Sec. 3. Minnesota Statutes 2004, section 125A.515, subdivision 3, is amended to read:
26.15 		Subd. 3.Responsibilities for providing education. (a) The district in which the 
26.16 	residential facility is located must provide education services, including special education 
26.17 	if eligible, to all students placed in a facility for care and treatment.
26.18 	(b) For education programs operated by the Department of Corrections, the 
26.19 	providing district shall be the Department of Corrections. For students remanded to the 
26.20 	commissioner of corrections, the providing and resident district shall be the Department 
26.21 	of Corrections.
26.22 	(c) Placement for care and treatment does not automatically make a student eligible 
26.23 	for special education. A student placed in a care and treatment facility is eligible for 
26.24 	special education under state and federal law including the Individuals with Disabilities 
26.25 	Education Act under United States Code, title 20, chapter 33.

26.26 	Sec. 4. Minnesota Statutes 2004, section 125A.515, subdivision 5, is amended to read:
26.27 		Subd. 5.Education programs for students placed in residential facilities for 
26.28 	care and treatment. (a) When a student is placed in a care and treatment facility
26.29 	approved under this section that has an on-site education program, the providing district, 
26.30 	upon notice from the care and treatment facility, must contact the resident district within 
26.31 	one business day to determine if a student has been identified as having a disability, and 
26.32 	to request at least the student's transcript, and for students with disabilities, the most 
26.33 	recent individualized education plan (IEP) and evaluation report, and to determine if the 
27.1 	student has been identified as a student with a disability. The resident district must send a 
27.2 	facsimile copy to the providing district within two business days of receiving the request.
27.3 	(b) If a student placed for care and treatment under this section has been identified as 
27.4 	having a disability and has an individual education plan in the resident district:
27.5 	(1) the providing agency must conduct an individualized education plan meeting 
27.6 	to reach an agreement about continuing or modifying special education services in 
27.7 	accordance with the current individualized education plan goals and objectives and to 
27.8 	determine if additional evaluations are necessary; and
27.9 	(2) at least the following people shall receive written notice or documented phone 
27.10 	call to be followed with written notice to attend the individualized education plan meeting:
27.11 	(i) the person or agency placing the student;
27.12 	(ii) the resident district;
27.13 	(iii) the appropriate teachers and related services staff from the providing district;
27.14 	(iv) appropriate staff from the care and treatment residential facility;
27.15 	(v) the parents or legal guardians of the student; and
27.16 	(vi) when appropriate, the student.
27.17 	(c) For a student who has not been identified as a student with a disability, a 
27.18 	screening must be conducted by the providing districts as soon as possible to determine 
27.19 	the student's educational and behavioral needs and must include a review of the student's 
27.20 	educational records.

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

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

28.4 	Sec. 7. Minnesota Statutes 2004, section 125A.515, subdivision 9, is amended to read:
28.5 		Subd. 9.Reimbursement for education services. (a) Education services 
28.6 	provided to students who have been placed for care and treatmentunder this section are 
28.7 	reimbursable in accordance with special education and general education statutes.
28.8 	(b) Indirect or consultative services provided in conjunction with regular education 
28.9 	prereferral interventions and assessment provided to regular education students suspected 
28.10 	of being disabled and who have demonstrated learning or behavioral problems in a 
28.11 	screening are reimbursable with special education categorical aids.
28.12 	(c) Regular education, including screening, provided to students with or without 
28.13 	disabilities is not reimbursable with special education categorical aids.

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

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

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

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

29.4 	Sec. 11. Minnesota Statutes 2005 Supplement, section 125A.79, subdivision 1, is 
29.5 	amended to read:
29.6 		Subdivision 1.Definitions. For the purposes of this section, the definitions in this 
29.7 	subdivision apply.
29.8 	(a) "Unreimbursed special education cost" means the sum of the following:
29.9 	(1) expenditures for teachers' salaries, contracted services, supplies, equipment, and 
29.10 	transportation services eligible for revenue under section 125A.76; plus
29.11 	(2) expenditures for tuition bills received under sections 125A.03 to 125A.24 and 
29.12 	125A.65 for services eligible for revenue under section 125A.76, subdivision 2; minus
29.13 	(3) revenue for teachers' salaries, contracted services, supplies, and equipment under 
29.14 	section 125A.76; minus
29.15 	(4) tuition receipts under sections 125A.03 to 125A.24 and 125A.65 for services 
29.16 	eligible for revenue under section 125A.76, subdivision 2.
29.17 	(b) "General revenue" means the sum of the general education revenue according to 
29.18 	section 126C.10, subdivision 1, as adjusted according to section 127A.47, subdivisions 
29.19 	7 and 8excluding alternative teacher compensation revenue, plus the total qualifying 
29.20 	referendum revenue specified in paragraph (e) minus transportation sparsity revenue 
29.21 	minus total operating capital revenue.
29.22 	(c) "Average daily membership" has the meaning given it in section 126C.05.
29.23 	(d) "Program growth factor" means 1.02 for fiscal year 2003, and 1.0 for fiscal 
29.24 	year 2004 and later.
29.25 	(e) "Total qualifying referendum revenue" means two-thirds of the district's total 
29.26 	referendum revenue as adjusted according to section 127A.47, subdivision 7, paragraphs 
29.27 	(a) to (c), for fiscal year 2006, one-third of the district's total referendum revenue for fiscal 
29.28 	year 2007, and none of the district's total referendum revenue for fiscal year 2008 and later.

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

29.30 	Sec. 12. SPECIAL EDUCATION FORECAST MAINTENANCE OF EFFORT.
 29.31 	(a) If, on the basis of a forecast of general fund revenues and expenditures under 
29.32 	Minnesota Statutes, section 16A.103; expenditures for special education aid under 
29.33 	Minnesota Statutes, section 125A.76; transition for disabled students under Minnesota 
30.1 	Statutes, section 124D.454; travel for home-based services under Minnesota Statutes, 
30.2 	section 125A.75, subdivision 1; aid for students with disabilities under Minnesota Statutes, 
30.3 	section 125A.75, subdivision 3; court-placed special education under Minnesota Statutes, 
30.4 	section 125A.79, subdivision 4; or out-of-state tuition under Minnesota Statutes, section 
30.5 	125A.79, subdivision 8, are projected to be less than the amount previously forecast for an 
30.6 	enacted budget, the forecast excess from these programs, up to an amount sufficient to 
30.7 	meet federal special education maintenance of effort, is added to the state total special 
30.8 	education aid in Minnesota Statutes, section 125A.76, subdivision 4.
30.9 	(b) If, on the basis of a forecast of general fund revenues and expenditures under 
30.10 	Minnesota Statutes, section 16A.103, expenditures in the programs in this section are 
30.11 	projected to be greater than previously forecast for an enacted budget, and an addition to 
30.12 	state total special education aid has been made under paragraph (a), the state total special 
30.13 	education aid must be reduced by the lesser of the amount of the expenditure increase or 
30.14 	the amount previously added to state total special education aid, and this amount must be 
30.15 	taken from the programs that were forecast to have a forecast excess.
30.16 	(c) For the purpose of this section, "previously forecast for an enacted budget" means 
30.17 	the allocation of funding for these programs in the most recent forecast of general fund 
30.18 	revenues and expenditures or the act appropriating money for these programs, whichever 
30.19 	occurred most recently. It does not include planning estimates for a future biennium.

30.20 	Sec. 13. DEPARTMENT OF EDUCATION RULES.
 30.21 	Before July 1, 2007, the Department of Education shall amend Minnesota Rules, 
30.22 	part 3525.2325, to conform with Minnesota Statutes, section 125A.515.

30.23 	Sec. 14.  REPEALER.
 30.24 	Minnesota Statutes 2004, sections 125A.10; and 125A.515, subdivision 2, are 
30.25 	repealed.

30.26 	ARTICLE 4
30.27 	FACILITIES, ACCOUNTING, AND TECHNOLOGY

30.28 	Section 1. Minnesota Statutes 2004, section 123B.10, subdivision 1, is amended to read:
30.29 		Subdivision 1.Budgets. By October 1, Every board must publish revenue and 
30.30 	expenditure budgets for the current year and the actual revenues, expenditures, fund 
30.31 	balances for the prior year and projected fund balances for the current year in a form 
30.32 	prescribed by the commissioner within one week of the acceptance of the final audit by 
30.33 	the board, or November 30, whichever is earlier. The forms prescribed must be designed 
31.1 	so that year to year comparisons of revenue, expenditures and fund balances can be made. 
31.2 	These budgets, reports of revenue, expenditures and fund balances must be published in 
31.3 	a qualified newspaper of general circulation in the district or on the district's official 
31.4 	Web site. If published on the district's official Web site, the district must also publish an 
31.5 	announcement in a qualified newspaper of general circulation in the district that includes 
31.6 	the Internet address where the information has been posted.

31.7 	Sec. 2. Minnesota Statutes 2004, section 127A.41, subdivision 2, is amended to read:
31.8 		Subd. 2.Errors in distribution. On determining that the amount of state aid 
31.9 	distributed to a school district is in error, the commissioner is authorized to adjust the 
31.10 	amount of aid consistent with this subdivision. On determining that the amount of aid is 
31.11 	in excess of the school district's entitlement, the commissioner is authorized to recover 
31.12 	the amount of the excess by any appropriate means. Notwithstanding the fiscal years 
31.13 	designated by the appropriation, the excess may be recovered by reducing future aid 
31.14 	payments to the district. Notwithstanding any law to the contrary, if the aid reduced is not 
31.15 	of the same type as that overpaid, the district must adjust all necessary financial accounts 
31.16 	to properly reflect all revenues earned in accordance with the uniform financial accounting 
31.17 	and reporting standards pursuant to sections  123B.75 to  123B.83. Notwithstanding the 
31.18 	fiscal years designated by the appropriation, on determining that the amount of an aid paid 
31.19 	is less than the school district's entitlement, the commissioner is authorized to increase 
31.20 	such aid from the current appropriation. If the aid program has been discontinued and has 
31.21 	no appropriation, the appropriation for general education shall be used for recovery or 
31.22 	payment of the aid decrease or increase. Any excess of aid recovery over aid payment 
31.23 	shall be canceled to the state general fund.

31.24 	Sec. 3. Minnesota Statutes 2004, section 181.101, is amended to read:
31.25 	181.101 WAGES; HOW OFTEN PAID.
31.26 	Every employer must pay all wages earned by an employee at least once every 31 
31.27 	days on a regular pay day designated in advance by the employer regardless of whether 
31.28 	the employee requests payment at longer intervals. Unless paid earlier, the wages earned 
31.29 	during the first half of the first 31-day pay period become due on the first regular payday 
31.30 	following the first day of work. If wages earned are not paid, the commissioner of labor 
31.31 	and industry or the commissioner's representative may demand payment on behalf of an 
31.32 	employee. If payment is not made within ten days of demand, the commissioner may 
31.33 	charge and collect the wages earned and a penalty in the amount of the employee's average 
31.34 	daily earnings at the rate agreed upon in the contract of employment, not exceeding 15 
32.1 	days in all, for each day beyond the ten-day limit following the demand. Money collected 
32.2 	by the commissioner must be paid to the employee concerned. This section does not 
32.3 	prevent an employee from prosecuting a claim for wages. This section does not prevent 
32.4 	a school district or,  other public school entity, or other school, as defined under section 
32.5 	120A.22,  from paying any wages earned by its employees during a school year on regular 
32.6 	pay days in the manner provided by an applicable contract or collective bargaining 
32.7 	agreement, or a personnel policy adopted by the governing board. For purposes of this 
32.8 	section, "employee" includes a person who performs agricultural labor as defined in 
32.9 	section  181.85, subdivision 2. For purposes of this section, wages are earned on the 
32.10 	day an employee works. 

32.11 	ARTICLE 5
32.12 	STATE AGENCIES

32.13 	Section 1. Minnesota Statutes 2004, section 125A.65, subdivision 3, is amended to 
32.14 	read:
32.15 		Subd. 3.Educational program; tuition. (a) When it is determined pursuant to 
32.16 	section  125A.69, subdivision 1 or 2, that the child is entitled to attend either school, 
32.17 	the board of the Minnesota State Academies must provide the appropriate educational 
32.18 	program for the child. 
32.19 	(b) For fiscal year 2006, the board of the Minnesota State Academies must make a 
32.20 	tuition charge to the child's district of residence for the cost of providing the program. 
32.21 	The amount of tuition charged must not exceed the sum of (1) the general education 
32.22 	revenue formula allowance times the pupil unit weighting factor pursuant to section  
32.23 	126C.05 for that child, for the amount of time the child is in the program, plus (2), if 
32.24 	the child was enrolled at the Minnesota State Academies on October 1 of the previous 
32.25 	fiscal year, the compensatory education revenue attributable to that child under section 
32.26 	126C.10, subdivision 3. The district of the child's residence must pay the tuition and 
32.27 	may claim general education aid for the child. Tuition received by the board of the 
32.28 	Minnesota State Academies, except for tuition for compensatory education revenue under 
32.29 	this paragraph and tuition received under subdivision 4, must be deposited in the state 
32.30 	treasury as provided in subdivision 8. 
32.31 	(c) For fiscal year 2007 and later, the district of the child's residence shall 
32.32 	claim general education revenue for the child, except as provided in this paragraph. 
32.33 	Notwithstanding section 127A.47, subdivision 1, an amount equal to the general education 
32.34 	revenue formula allowance times the pupil unit weighting factor pursuant to section 
32.35 	126C.05 for that child for the amount of time the child is in the program, as adjusted 
33.1 	according to subdivision 8, paragraph (d), must be paid to the Minnesota State Academies. 
33.2 	Notwithstanding section 126C.15, subdivision 2, paragraph (d), the compensatory 
33.3 	education revenue under section 126C.10, subdivision 3, attributable to children enrolled at 
33.4 	the Minnesota State Academies on October 1 of the previous fiscal year must be paid to the 
33.5 	Minnesota State Academies. General education aid paid to the Minnesota State Academies 
33.6 	under this paragraph must be credited to their general operation account. Other general 
33.7 	education aid attributable to the child must be paid to the district of the child's residence.

33.8 	Sec. 2. Minnesota Statutes 2004, section 125A.65, subdivision 4, is amended to read:
33.9 		Subd. 4.Unreimbursed costs. (a) For fiscal year 2006, in addition to the tuition 
33.10 	charge allowed in subdivision 3, the academies may charge the child's district of residence 
33.11 	for the academy's unreimbursed cost of providing an instructional aide assigned to that 
33.12 	child, after deducting the special education aid under section 125A.76, attributable to the 
33.13 	child, if that aide is required by the child's individual education plan. Tuition received 
33.14 	under this paragraph must be used by the academies to provide the required service.
33.15 	(b) For fiscal year 2007 and later, the special education aid paid to the academies 
33.16 	shall be increased by the academy's unreimbursed cost of providing an instructional 
33.17 	aide assigned to a child, after deducting the special education aid under section 125A.76 
33.18 	attributable to the child, if that aide is required by the child's individual education plan. 
33.19 	Aid received under this paragraph must be used by the academies to provide the required 
33.20 	service.
33.21 	(c) For fiscal year 2007 and later, the special education aid paid to the district of 
33.22 	the child's residence shall be reduced by the amount paid to the academies for district 
33.23 	residents under paragraph (b).
33.24 	(d) Notwithstanding section 127A.45, subdivision 3, beginning in fiscal year 2008, 
33.25 	the commissioner shall make an estimated final adjustment payment to the Minnesota 
33.26 	State Academies for general education aid and special education aid for the prior fiscal 
33.27 	year by August 15.

33.28 	Sec. 3. Minnesota Statutes 2004, section 125A.65, subdivision 6, is amended to read:
33.29 		Subd. 6.Tuition reduction. Notwithstanding the provisions of subdivisions 3 and 
33.30 	5, the board of the Minnesota State Academies may agree to make a tuition charge, or 
33.31 	receive an aid adjustment, as applicable, for less than the amount specified in subdivision 
33.32 	3 for pupils attending the applicable school who are residents of the district where the 
33.33 	institution is located and who do not board at the institution, if that district agrees to make 
33.34 	a tuition charge to the board of the Minnesota State Academies for less than the amount 
34.1 	specified in subdivision 5 for providing appropriate educational programs to pupils 
34.2 	attending the applicable school.

34.3 	Sec. 4. Minnesota Statutes 2004, section 125A.65, subdivision 8, is amended to read:
34.4 		Subd. 8.Student count; tuition. (a) On May 1, 1996, and each year thereafter, 
34.5 	the board of the Minnesota State Academies shall count the actual number of Minnesota 
34.6 	resident special education eligible students enrolled and receiving education services at the 
34.7 	Minnesota State Academy for the Deaf and the Minnesota State Academy for the Blind. 
34.8 	(b) For fiscal year 2006, the board of the Minnesota State Academies shall deposit in 
34.9 	the state treasury an amount equal to all tuition received for the basic revenue according to 
34.10 	subdivision 3, less the amount calculated in paragraph (b) (c).
34.11 	(b) (c) For fiscal year 2006, the Minnesota State Academies shall credit to their 
34.12 	general operation account an amount equal to the tuition received which represents tuition 
34.13 	earned for the total number of students over 175 based on:
34.14 	(1) the total number of enrolled students on May 1 less 175; times
34.15 	(2) the ratio of the number of students in that grade category to the total number of 
34.16 	students on May 1; times
34.17 	(3) the general education revenue formula allowance; times
34.18 	(4) the pupil unit weighting factor pursuant to section  126C.05. 
34.19 	(d) For fiscal year 2007 and later, the Minnesota State Academies shall report to 
34.20 	the department the number of students by grade level counted according to paragraph (a). 
34.21 	The amount paid to the Minnesota State Academies under subdivision 3, paragraph (c), 
34.22 	must be reduced by an amount equal to:
34.23 	(1) the ratio of 175 to the total number of students on May 1; times
34.24 	(2) the total basic revenue determined according to subdivision 3, paragraph (c).

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

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

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

35.8 	ARTICLE 6
35.9 	EARLY CHILDHOOD PROVISIONS

35.10 	Section 1. Minnesota Statutes 2004, section 119A.50, subdivision 1, is amended to read:
35.11 		Subdivision 1.Department of Education. The Department of Education is the 
35.12 	state agency responsible for administering the Head Start program. The commissioner 
35.13 	of education may make grantsshall allocate funds according to the formula in section 
35.14 	119A.52 to public or private nonprofit agencies for the purpose of providing supplemental 
35.15 	funds for the federal Head Start program.

35.16 	Sec. 2. Minnesota Statutes 2004, section 119A.52, is amended to read:
35.17 	119A.52 DISTRIBUTION OF APPROPRIATION AND PROGRAM 
35.18 	COORDINATION.
35.19 	The commissioner of education must distribute money appropriated for that purpose 
35.20 	to federally designated Head Start program granteesprograms to expand services and to 
35.21 	serve additional low-income children. Money must be allocated to each project Head Start 
35.22 	grantee in existence on the effective date of Laws 1989, chapter 282. Migrant and Indian 
35.23 	reservation granteesprograms must be initially allocated money based on the grantees'
35.24 	programs' share of federal funds. The remaining money must be initially allocated to the 
35.25 	remaining local agencies based equally on the agencies' share of federal funds and on the 
35.26 	proportion of eligible children in the agencies' service area who are not currently being 
35.27 	served. A Head Start grantee must be funded at a per child rate equal to its contracted, 
35.28 	federally funded base level for program accounts 20, 22, and 25 at the start of the fiscal 
35.29 	year. In allocating funds under this paragraph, the commissioner of education must assure 
35.30 	that each Head Start granteeprogram in existence in 1993 is allocated no less funding 
35.31 	in any fiscal year than was allocated to that granteeprogram in fiscal year 1993. The 
35.32 	commissioner may provide additional funding to grantees for start-up costs incurred by 
35.33 	grantees due to the increased number of children to be served. Before paying money to 
36.1 	the grantees programs, the commissioner must notify each granteeprogram of its initial 
36.2 	allocation, how the money must be used, and the number of low-income children that 
36.3 	mustto be served with the allocation based upon the federally funded per child rate. 
36.4 	Each granteeprogram must present a work plan to the commissioner for approval. The 
36.5 	work plan must include the estimated number of low-income children and families it will 
36.6 	be able to serve, a description of the program design and service delivery area which 
36.7 	meets the needs of and encourages access by low-income working families, a program 
36.8 	design that ensures fair and equitable access to Head Start services for all populations and 
36.9 	parts of the service area, and a plan for coordinating services to maximize assistance 
36.10 	for child care costs available to families under chapter 119B.under section 119A.535. 
36.11 	For any grantee that cannot utilize its full allocation, the commissioner must reduce the 
36.12 	allocation proportionately. Money available after the initial allocations are reduced must 
36.13 	be redistributed to eligible grantees.

36.14 	Sec. 3. Minnesota Statutes 2004, section 119A.53, is amended to read:
36.15 	119A.53 FEDERAL REQUIREMENTS.
36.16 	GranteesPrograms and the commissioner shall comply with federal regulations 
36.17 	governing the federal Head Start program, except for funding for innovative initiatives 
36.18 	under section  119A.52 119A.535 as approved by the commissioner, which may be used to 
36.19 	operate differently than federal Head Start regulations. If a state statute or rule conflicts 
36.20 	with a federal statute or regulation, the state statute or rule prevails. 

36.21 	Sec. 4. [119A.535] APPLICATION REQUIREMENTS.
36.22 	Eligible Head Start organizations must submit a plan to the department for approval 
36.23 	on a form and in the manner prescribed by the commissioner. The plan must include:
36.24 	(1) the estimated number of low-income children and families the program will be 
36.25 	able to serve;
36.26 	(2) a description of the program design and service delivery area which meets the 
36.27 	needs of and encourages access by low-income working families;
36.28 	(3) a program design that ensures fair and equitable access to Head Start services for 
36.29 	all populations and parts of the service area;
36.30 	(4) a plan for coordinating services to maximize assistance for child care costs 
36.31 	available to families under chapter 119B; and
36.32 	(5) identification of regular Head Start, early Head Start, and innovative services 
36.33 	based upon demonstrated needs to be provided.

37.1 	Sec. 5. Minnesota Statutes 2004, section 119A.545, is amended to read:
37.2 	119A.545 AUTHORITY TO WAIVE REQUIREMENTS DURING DISASTER 
37.3 	PERIODS.
37.4 	The commissioner of education may waive requirements under sections  119A.50
37.5 	to  119A.53 119A.535, for up to nine months after the disaster, for Head Start grantees
37.6 	programs in areas where a federal disaster has been declared under United States Code, 
37.7 	title 42, section 5121, et seq., or the governor has exercised authority under chapter 12. 
37.8 	The commissioner shall notify the chairs of the appropriate senate Family and Early 
37.9 	Childhood Education Budget Division, the senate Education Finance Committee, theand 
37.10 	house Family and Early Childhood Education Finance Division, the house Education 
37.11 	Committee, and the house Ways and Means Committeecommittees ten days before the 
37.12 	effective date of any waiver granted under this section. 

37.13 	Sec. 6. Minnesota Statutes 2005 Supplement, section 121A.17, subdivision 5, is 
37.14 	amended to read:
37.15 		Subd. 5.Developmental screening program information. The board must inform 
37.16 	each resident family with a child eligible to participate in the developmental screening 
37.17 	program about the availability of the program and the state's requirement that a child 
37.18 	receive a developmental screening or provide health records indicating that the child 
37.19 	received a comparable developmental screening from a public or private health care 
37.20 	organization or individual health care provider not later than 30 days after the first 
37.21 	day of attending kindergarten in a public school. A school district must inform all 
37.22 	resident families with eligible children under age seven that their children may receive a 
37.23 	developmental screening conducted either by the school district or by a public or private 
37.24 	health care organization or individual health care provider, and that if a statement signed 
37.25 	by the child's parent or guardian is submitted to the administrator or other person having 
37.26 	general control and supervision of the school that the child has not been screened because 
37.27 	of conscientiously held beliefs of the parent or guardian, the screening is not required.

37.28 	Sec. 7. Minnesota Statutes 2004, section 124D.13, subdivision 2, is amended to read:
37.29 		Subd. 2.Program characteristics. (a) Early childhood family education programs 
37.30 	are programs for children in the period of life from birth to kindergarten, for the parents
37.31 	and other relatives of such these children, and for expectant parents. To the extent 
37.32 	that funds are insufficient to provide programs for all children, early childhood family 
37.33 	education programs should emphasize programming for a child from birth to age three 
37.34 	and encourage parents and other relatives to involve four- and five-year-old children in 
38.1 	school readiness programs, and other public and nonpublic early learning programs. Early 
38.2 	childhood family education programs may include the following:
38.3 	(1) programs to educate parents and other relatives about the physical, mental, 
38.4 	and emotional development of children;
38.5 	(2) programs to enhance the skills of parents and other relatives in providing for 
38.6 	their children's learning and development;
38.7 	(3) learning experiences for children and parents and other relatives that promote 
38.8 	children's development;
38.9 	(4) activities designed to detect children's physical, mental, emotional, or behavioral 
38.10 	problems that may cause learning problems;
38.11 	(5) activities and materials designed to encourage self-esteem, skills, and behavior 
38.12 	that prevent sexual and other interpersonal violence;
38.13 	(6) educational materials which may be borrowed for home use;
38.14 	(7) information on related community resources;
38.15 	(8) programs to prevent child abuse and neglect;
38.16 	(9) other programs or activities to improve the health, development, and school 
38.17 	readiness of children; or
38.18 	(10) activities designed to maximize development during infancy.
38.19 	The programs must not include activities for children that do not require substantial 
38.20 	involvement of the children's parents or other relatives. The programs must be reviewed 
38.21 	periodically to assure the instruction and materials are not racially, culturally, or sexually 
38.22 	biased. The programs must encourage parents to be aware of practices that may affect 
38.23 	equitable development of children.
38.24 	(b) For the purposes of this section, "relative" or "relatives" means noncustodial 
38.25 	grandparents or other persons related to a child by blood, marriage, adoption, or foster 
38.26 	placement, excluding parents.

38.27 	Sec. 8. Minnesota Statutes 2004, section 124D.13, subdivision 3, is amended to read:
38.28 		Subd. 3.Substantial parental involvement. The requirement of substantial 
38.29 	parentalor other relative involvement in subdivision 2 means that:
38.30 	(a) parents or other relatives must be physically present much of the time in classes 
38.31 	with their children or be in concurrent classes;
38.32 	(b) parenting education or family education must be an integral part of every early 
38.33 	childhood family education program;
38.34 	(c) early childhood family education appropriations must not be used for traditional 
38.35 	day care or nursery school, or similar programs; and
39.1 	(d) the form of parent involvement common to kindergarten, elementary school, or 
39.2 	early childhood special education programs such as parent conferences, newsletters, and 
39.3 	notes to parents do not qualify a program under subdivision 2.

39.4 	Sec. 9. Laws 2005, First Special Session chapter 5, article 7, section 20, subdivision 5, 
39.5 	is amended to read:
39.6 	
39.7 	Subd. 5. Head Start program. For Head Start programs  under Minnesota Statutes, 
39.8 	section 119A.52:  

39.9		$
	19,100,000
	.....
	2006
	
39.10		$
	19,100,000
	.....
	2007
	
39.11 	Any balance in the first year does not cancel but is available in the second year.

39.12 	Sec. 10.  REPEALER.
 39.13 	Minnesota Statutes 2004, section 119A.51, is repealed.

39.14 	ARTICLE 7
39.15 	TECHNICAL AND CONFORMING AMENDMENTS

39.16 	Section 1. Minnesota Statutes 2005 Supplement, section 120B.11, subdivision 2, is 
39.17 	amended to read:
39.18 		Subd. 2.Adopting policies. (a) A school board shall have in place an adopted 
39.19 	written policy that includes the following:
39.20 	(1) district goals for instruction including the use of best practices, district and 
39.21 	school curriculum, and achievement for all student subgroups;
39.22 	(2) a process for evaluating each student's progress toward meeting academic 
39.23 	standards and identifying the strengths and weaknesses of instruction and curriculum 
39.24 	affecting students' progress;
39.25 	(3) a system for periodically reviewing and evaluating all instruction and curriculum;
39.26 	(4) a plan for improving instruction, curriculum, and student achievement; and
39.27 	(5) an education effectiveness plan aligned with section 122A.625 that integrates 
39.28 	instruction, curriculum, and technology.

39.29 	Sec. 2. Minnesota Statutes 2004, section 121A.15, subdivision 10, is amended to read:
40.1 		Subd. 10.Requirements for immunization statements. (a) A statement required 
40.2 	to be submitted under subdivisions 1, 2, and 4 to document evidence of immunization 
40.3 	shall include month, day, and year for immunizations administered after January 1, 1990.
40.4 	(a) For persons enrolled in grades 7 and 12 during the 1996-1997 school term, the 
40.5 	statement must indicate that the person has received a dose of tetanus and diphtheria 
40.6 	toxoid no earlier than 11 years of age.
40.7 	(b) Except as specified in paragraph (e), for persons enrolled in grades 7, 8, and 12 
40.8 	during the 1997-1998 school term, the statement must indicate that the person has received 
40.9 	a dose of tetanus and diphtheria toxoid no earlier than 11 years of age.
40.10 	(c) Except as specified in paragraph (e), for persons enrolled in grades 7 through 
40.11 	12 during the 1998-1999 school term and for each year thereafter, the statement must 
40.12 	indicate that the person has received a dose of tetanus and diphtheria toxoid no earlier 
40.13 	than 11 years of age.
40.14 	(d) For persons enrolled in grades 7 through 12 during the 1996-1997 school year 
40.15 	and for each year thereafter, the statement must indicate that the person has received at 
40.16 	least two doses of vaccine against measles, mumps, and rubella, given alone or separately 
40.17 	and given not less than one month apart.
40.18 	(e)  (b) A person who has received at least three doses of tetanus and diphtheria 
40.19 	toxoids, with the most recent dose given after age six and before age 11, is not required to 
40.20 	have additional immunization against diphtheria and tetanus until ten years have elapsed 
40.21 	from the person's most recent dose of tetanus and diphtheria toxoid.
40.22 	(f)  (c) The requirement for hepatitis B vaccination shall apply to persons enrolling in 
40.23 	kindergarten beginning with the 2000-2001 school term.
40.24 	(g) (d) The requirement for hepatitis B vaccination shall apply to persons enrolling 
40.25 	in grade 7 beginning with the 2001-2002 school term.

40.26 	Sec. 3. Minnesota Statutes 2005 Supplement, section 123B.04, subdivision 2, is 
40.27 	amended to read:
40.28 		Subd. 2.Agreement. (a) Upon the request of 60 percent of the licensed employees 
40.29 	of a site or a school site decision-making team, the school board shall enter into 
40.30 	discussions to reach an agreement concerning the governance, management, or control of 
40.31 	the school. A school site decision-making team may include the school principal, teachers 
40.32 	in the school or their designee, other employees in the school, representatives of pupils 
40.33 	in the school, or other members in the community. A school site decision-making team 
40.34 	must include at least one parent of a pupil in the school. For purposes of formation of a 
40.35 	new site, a school site decision-making team may be a team of teachers that is recognized 
41.1 	by the board as a site. The school site decision-making team shall include the school 
41.2 	principal or other person having general control and supervision of the school. The site 
41.3 	decision-making team must reflect the diversity of the education site. At least one-half 
41.4 	of the members shall be employees of the district, unless an employee is the parent of a 
41.5 	student enrolled in the school site, in which case the employee may elect to serve as a 
41.6 	parent member of the site team.
41.7 	(b) School site decision-making agreements must delegate powers, duties, and 
41.8 	broad management responsibilities to site teams and involve staff members, students as 
41.9 	appropriate, and parents in decision making.
41.10 	(c) An agreement shall include a statement of powers, duties, responsibilities, and 
41.11 	authority to be delegated to and within the site.
41.12 	(d) An agreement may include:
41.13 	(1) an achievement contract according to subdivision 4;
41.14 	(2) a mechanism to allow principals, a site leadership team, or other persons having 
41.15 	general control and supervision of the school, to make decisions regarding how financial 
41.16 	and personnel resources are best allocated at the site and from whom goods or services 
41.17 	are purchased;
41.18 	(3) a mechanism to implement parental involvement programs under section 
41.19 	124D.895 and to provide for effective parental communication and feedback on this 
41.20 	involvement at the site level;
41.21 	(4) a provision that would allow the team to determine who is hired into licensed 
41.22 	and nonlicensed positions;
41.23 	(5) a provision that would allow teachers to choose the principal or other person 
41.24 	having general control;
41.25 	(6) an amount of revenue allocated to the site under subdivision 3; and
41.26 	(7) any other powers and duties determined appropriate by the board.
41.27 	The school board of the district remains the legal employer under clauses (4) and (5).
41.28 	(e) Any powers or duties not delegated to the school site management team in the 
41.29 	school site management agreement shall remain with the school board.
41.30 	(f) Approved agreements shall be filed with the commissioner. If a school board 
41.31 	denies a request or the school site and school board fail to reach an agreement to enter 
41.32 	into a school site management agreement, the school board shall provide a copy of the 
41.33 	request and the reasons for its denial to the commissioner.
41.34 	(g) A site decision-making grant program is established, consistent with this 
41.35 	subdivision, to allow sites to implement an agreement that at least:
42.1 	(1) notwithstanding subdivision 3, allocates to the site all revenue that is attributable 
42.2 	to the students at that site;
42.3 	(2) includes a provision, consistent with current law and the collective bargaining 
42.4 	agreement in effect, that allows the site team to decide who is selected from within the 
42.5 	district for licensed and nonlicensed positions at the site and to make staff assignments 
42.6 	in the site; and
42.7 	(3) includes a completed performance agreement under subdivision 4.
42.8 	The commissioner shall establish the form and manner of the application for a grant 
42.9 	and annually, at the end of each fiscal year, report to the house of representatives and 
42.10 	senate committees having jurisdiction over education on the progress of the program.

42.11 	Sec. 4. Minnesota Statutes 2004, section 125A.62, subdivision 1, is amended to read:
42.12 		Subdivision 1.Governance. The board of the Minnesota State Academies shall 
42.13 	govern the State Academies Academy for the Deaf and the State Academy for the Blind. 
42.14 	The board must promote academic standards based on high expectation and an assessment 
42.15 	system to measure academic performance toward the achievement of those standards. The 
42.16 	board must focus on the academies' needs as a whole and not prefer one school over the 
42.17 	other. The board of the Minnesota State Academies shall consist of nine persons. The 
42.18 	members of the board shall be appointed by the governor with the advice and consent of 
42.19 	the senate. One member must be from the seven-county metropolitan area, one member 
42.20 	must be from greater Minnesota, and one member may be appointed at-large. The board 
42.21 	must be composed of:
42.22 	(1) one present or former superintendent of an independent school district;
42.23 	(2) one present or former special education director;
42.24 	(3) the commissioner of education or the commissioner's designee;
42.25 	(4) one member of the blind community;
42.26 	(5) one member of the deaf community;
42.27 	(6) two members of the general public with business, administrative, or financial 
42.28 	expertise;
42.29 	(7) one nonvoting, unpaid ex officio member appointed by the site council for the 
42.30 	State Academy for the Deaf; and
42.31 	(8) one nonvoting, unpaid ex officio member appointed by the site council for the 
42.32 	State Academy for the Blind.

42.33 	Sec. 5. Minnesota Statutes 2005 Supplement, section 126C.10, subdivision 24, is 
42.34 	amended to read:
43.1 		Subd. 24.Equity revenue. (a) A school district qualifies for equity revenue if:
43.2 	(1) the school district's adjusted marginal cost pupil unit amount of basic revenue, 
43.3 	supplemental revenue, transition revenue, and referendum revenue is less than the value of 
43.4 	the school district at or immediately above the 95th percentile of school districts in its 
43.5 	equity region for those revenue categories; and
43.6 	(2) the school district's administrative offices are not located in a city of the first 
43.7 	class on July 1, 1999.
43.8 	(b) Equity revenue for a qualifying district that receives referendum revenue under 
43.9 	section 126C.17, subdivision 4, equals the product of (1) the district's adjusted marginal 
43.10 	cost pupil units for that year; times (2) the sum of (i) $13, plus (ii) $75, times the school 
43.11 	district's equity index computed under subdivision 27.
43.12 	(c) Equity revenue for a qualifying district that does not receive referendum revenue 
43.13 	under section 126C.17, subdivision 4, equals the product of the district's adjusted marginal 
43.14 	cost pupil units for that year times $13.
43.15 	(d) A school district's equity revenue is increased by the greater of zero or an amount 
43.16 	equal to the district's resident marginal cost pupil units times the difference between ten 
43.17 	percent of the statewide average amount of referendum revenue per resident marginal cost 
43.18 	pupil unit for that year and the district's referendum revenue per resident marginal cost 
43.19 	pupil unit. A school district's revenue under this paragraph must not exceed $100,000 for 
43.20 	that year.
43.21 	(e) A school district's equity revenue for a school district located in the metro equity 
43.22 	region equals the amount computed in paragraphs (b), (c), and (d) multiplied by 1.25.
43.23 	(f) For fiscal year 2007 and later, notwithstanding paragraph (a), clause (2), a school 
43.24 	district that has per pupil referendum revenue below the 95th percentile qualifies for 
43.25 	additional equity revenue equal to $46 times its adjusted marginal cost pupil unit.
43.26 	(g) A district that does not qualify for revenue under paragraph (f) qualifies for 
43.27 	equity revenue equal to one-half of the per pupil allowance in paragraph (f) times its 
43.28 	adjusted marginal cost pupil units.

43.29 	Sec. 6. Minnesota Statutes 2005 Supplement, section 626.556, subdivision 2, is 
43.30 	amended to read:
43.31 		Subd. 2.Definitions. As used in this section, the following terms have the meanings 
43.32 	given them unless the specific content indicates otherwise:
43.33 	(a) "Family assessment" means a comprehensive assessment of child safety, risk 
43.34 	of subsequent child maltreatment, and family strengths and needs that is applied to a 
43.35 	child maltreatment report that does not allege substantial child endangerment. Family 
44.1 	assessment does not include a determination as to whether child maltreatment occurred 
44.2 	but does determine the need for services to address the safety of family members and the 
44.3 	risk of subsequent maltreatment.
44.4 	(b) "Investigation" means fact gathering related to the current safety of a child 
44.5 	and the risk of subsequent maltreatment that determines whether child maltreatment 
44.6 	occurred and whether child protective services are needed. An investigation must be used 
44.7 	when reports involve substantial child endangerment, and for reports of maltreatment in 
44.8 	facilities required to be licensed under chapter 245A or 245B; under sections 144.50 to 
44.9 	144.58 and 241.021; in a school as defined in sections 120A.05, subdivisions 9, 11, and 
44.10 	13, and 124D.10; or in a nonlicensed personal care provider association as defined in 
44.11 	sections 256B.04, subdivision 16, and 256B.0625, subdivision 19a.
44.12 	(c) "Substantial child endangerment" means a person responsible for a child's care, a 
44.13 	person who has a significant relationship to the child as defined in section 609.341, or a 
44.14 	person in a position of authority as defined in section 609.341, who by act or omission 
44.15 	commits or attempts to commit an act against a child under their care that constitutes 
44.16 	any of the following:
44.17 	(1) egregious harm as defined in section 260C.007, subdivision 14;
44.18 	(2) sexual abuse as defined in paragraph (d);
44.19 	(3) abandonment under section 260C.301, subdivision 2;
44.20 	(4) neglect as defined in paragraph (f), clause (2), that substantially endangers the 
44.21 	child's physical or mental health, including a growth delay, which may be referred to as 
44.22 	failure to thrive, that has been diagnosed by a physician and is due to parental neglect;
44.23 	(5) murder in the first, second, or third degree under section 609.185, 609.19, or 
44.24 	609.195;
44.25 	(6) manslaughter in the first or second degree under section 609.20 or 609.205;
44.26 	(7) assault in the first, second, or third degree under section 609.221, 609.222, or 
44.27 	609.223;
44.28 	(8) solicitation, inducement, and promotion of prostitution under section 609.322;
44.29 	(9) criminal sexual conduct under sections 609.342 to 609.3451;
44.30 	(10) solicitation of children to engage in sexual conduct under section 609.352;
44.31 	(11) malicious punishment or neglect or endangerment of a child under section 
44.32 	609.377 or 609.378;
44.33 	(12) use of a minor in sexual performance under section 617.246; or
44.34 	(13) parental behavior, status, or condition which mandates that the county attorney 
44.35 	file a termination of parental rights petition under section 260C.301, subdivision 3, 
44.36 	paragraph (a).
45.1 	(d) "Sexual abuse" means the subjection of a child by a person responsible for the 
45.2 	child's care, by a person who has a significant relationship to the child, as defined in 
45.3 	section 609.341, or by a person in a position of authority, as defined in section 609.341, 
45.4 	subdivision 10, to any act which constitutes a violation of section 609.342 (criminal sexual 
45.5 	conduct in the first degree), 609.343 (criminal sexual conduct in the second degree), 
45.6 	609.344 (criminal sexual conduct in the third degree), 609.345 (criminal sexual conduct 
45.7 	in the fourth degree), or 609.3451 (criminal sexual conduct in the fifth degree). Sexual 
45.8 	abuse also includes any act which involves a minor which constitutes a violation of 
45.9 	prostitution offenses under sections 609.321 to 609.324 or 617.246. Sexual abuse includes 
45.10 	threatened sexual abuse.
45.11 	(e) "Person responsible for the child's care" means (1) an individual functioning 
45.12 	within the family unit and having responsibilities for the care of the child such as a 
45.13 	parent, guardian, or other person having similar care responsibilities, or (2) an individual 
45.14 	functioning outside the family unit and having responsibilities for the care of the child 
45.15 	such as a teacher, school administrator, other school employees or agents, or other lawful 
45.16 	custodian of a child having either full-time or short-term care responsibilities including, 
45.17 	but not limited to, day care, babysitting whether paid or unpaid, counseling, teaching, 
45.18 	and coaching.
45.19 	(f) "Neglect" means:
45.20 	(1) failure by a person responsible for a child's care to supply a child with necessary 
45.21 	food, clothing, shelter, health, medical, or other care required for the child's physical or 
45.22 	mental health when reasonably able to do so;
45.23 	(2) failure to protect a child from conditions or actions that seriously endanger the 
45.24 	child's physical or mental health when reasonably able to do so, including a growth delay, 
45.25 	which may be referred to as a failure to thrive, that has been diagnosed by a physician and 
45.26 	is due to parental neglect;
45.27 	(3) failure to provide for necessary supervision or child care arrangements 
45.28 	appropriate for a child after considering factors as the child's age, mental ability, physical 
45.29 	condition, length of absence, or environment, when the child is unable to care for the 
45.30 	child's own basic needs or safety, or the basic needs or safety of another child in their care;
45.31 	(4) failure to ensure that the child is educated as defined in sections 120A.22 and 
45.32 	260C.163, subdivision 11, which does not include a parent's refusal to provide the parent's 
45.33 	child with sympathomimetic medications, consistent with section 125A.091, subdivision 5;
45.34 	(5) nothing in this section shall be construed to mean that a child is neglected solely 
45.35 	because the child's parent, guardian, or other person responsible for the child's care in 
45.36 	good faith selects and depends upon spiritual means or prayer for treatment or care of 
46.1 	disease or remedial care of the child in lieu of medical care; except that a parent, guardian, 
46.2 	or caretaker, or a person mandated to report pursuant to subdivision 3, has a duty to report 
46.3 	if a lack of medical care may cause serious danger to the child's health. This section does 
46.4 	not impose upon persons, not otherwise legally responsible for providing a child with 
46.5 	necessary food, clothing, shelter, education, or medical care, a duty to provide that care;
46.6 	(6) prenatal exposure to a controlled substance, as defined in section 253B.02, 
46.7 	subdivision 2, used by the mother for a nonmedical purpose, as evidenced by withdrawal 
46.8 	symptoms in the child at birth, results of a toxicology test performed on the mother at 
46.9 	delivery or the child at birth, or medical effects or developmental delays during the child's 
46.10 	first year of life that medically indicate prenatal exposure to a controlled substance;
46.11 	(7) "medical neglect" as defined in section 260C.007, subdivision 6, clause (5);
46.12 	(8) chronic and severe use of alcohol or a controlled substance by a parent or 
46.13 	person responsible for the care of the child that adversely affects the child's basic needs 
46.14 	and safety; or
46.15 	(9) emotional harm from a pattern of behavior which contributes to impaired 
46.16 	emotional functioning of the child which may be demonstrated by a substantial and 
46.17 	observable effect in the child's behavior, emotional response, or cognition that is not 
46.18 	within the normal range for the child's age and stage of development, with due regard to 
46.19 	the child's culture.
46.20 	(g) "Physical abuse" means any physical injury, mental injury, or threatened injury, 
46.21 	inflicted by a person responsible for the child's care on a child other than by accidental 
46.22 	means, or any physical or mental injury that cannot reasonably be explained by the child's 
46.23 	history of injuries, or any aversive or deprivation procedures, or regulated interventions, 
46.24 	that have not been authorized under section 121A.67 or 245.825. Abuse does not include 
46.25 	reasonable and moderate physical discipline of a child administered by a parent or legal 
46.26 	guardian which does not result in an injury. Abuse does not include the use of reasonable 
46.27 	force by a teacher, principal, or school employee as allowed by section 121A.582. Actions 
46.28 	which are not reasonable and moderate include, but are not limited to, any of the following 
46.29 	that are done in anger or without regard to the safety of the child:
46.30 	(1) throwing, kicking, burning, biting, or cutting a child;
46.31 	(2) striking a child with a closed fist;
46.32 	(3) shaking a child under age three;
46.33 	(4) striking or other actions which result in any nonaccidental injury to a child 
46.34 	under 18 months of age;
46.35 	(5) unreasonable interference with a child's breathing;
46.36 	(6) threatening a child with a weapon, as defined in section 609.02, subdivision 6;
47.1 	(7) striking a child under age one on the face or head;
47.2 	(8) purposely giving a child poison, alcohol, or dangerous, harmful, or controlled 
47.3 	substances which were not prescribed for the child by a practitioner, in order to control 
47.4 	or punish the child; or other substances that substantially affect the child's behavior, 
47.5 	motor coordination, or judgment or that results in sickness or internal injury, or subjects 
47.6 	the child to medical procedures that would be unnecessary if the child were not exposed 
47.7 	to the substances;
47.8 	(9) unreasonable physical confinement or restraint not permitted under section 
47.9 	609.379, including but not limited to tying, caging, or chaining; or
47.10 	(10) in a school facility or school zone, an act by a person responsible for the child's 
47.11 	care that is a violation under section 121A.58.
47.12 	(h) "Report" means any report received by the local welfare agency, police 
47.13 	department, county sheriff, or agency responsible for assessing or investigating 
47.14 	maltreatment pursuant to this section.
47.15 	(i) "Facility" means:
47.16 	(1) a licensed or unlicensed day care facility, residential facility, agency, hospital, 
47.17 	sanitarium, or other facility or institution required to be licensed under sections 144.50 to 
47.18 	144.58, 241.021, or 245A.01 to 245A.16, or chapter 245B; or
47.19 	(2) a school as defined in sections 120A.05, subdivisions 9, 11, and 13; and 
47.20 	124D.10; or 
47.21 	(3) a nonlicensed personal care provider organization as defined in sections 256B.04, 
47.22 	subdivision 16, and 256B.0625, subdivision 19a.
47.23 	(j) "Operator" means an operator or agency as defined in section 245A.02.
47.24 	(k) "Commissioner" means the commissioner of human services.
47.25 	(l) "Practice of social services," for the purposes of subdivision 3, includes but is 
47.26 	not limited to employee assistance counseling and the provision of guardian ad litem and 
47.27 	parenting time expeditor services.
47.28 	(m) "Mental injury" means an injury to the psychological capacity or emotional 
47.29 	stability of a child as evidenced by an observable or substantial impairment in the child's 
47.30 	ability to function within a normal range of performance and behavior with due regard to 
47.31 	the child's culture.
47.32 	(n) "Threatened injury" means a statement, overt act, condition, or status that 
47.33 	represents a substantial risk of physical or sexual abuse or mental injury. Threatened 
47.34 	injury includes, but is not limited to, exposing a child to a person responsible for the 
47.35 	child's care, as defined in paragraph (e), clause (1), who has:
48.1 	(1) subjected a child to, or failed to protect a child from, an overt act or condition 
48.2 	that constitutes egregious harm, as defined in section 260C.007, subdivision 14, or a 
48.3 	similar law of another jurisdiction;
48.4 	(2) been found to be palpably unfit under section 260C.301, paragraph (b), clause 
48.5 	(4), or a similar law of another jurisdiction;
48.6 	(3) committed an act that has resulted in an involuntary termination of parental rights 
48.7 	under section 260C.301, or a similar law of another jurisdiction; or
48.8 	(4) committed an act that has resulted in the involuntary transfer of permanent legal 
48.9 	and physical custody of a child to a relative under section 260C.201, subdivision 11, 
48.10 	paragraph (d), clause (1), or a similar law of another jurisdiction.
48.11 	(o) Persons who conduct assessments or investigations under this section shall take 
48.12 	into account accepted child-rearing practices of the culture in which a child participates 
48.13 	and accepted teacher discipline practices, which are not injurious to the child's health, 
48.14 	welfare, and safety.