HF 872

4th Engrossment - 84th Legislature (2005 - 2006) Posted on 12/15/2009 12:00am

A bill for an act
relating to education; providing for early childhood,
adult, family, and kindergarten through grade 12
education including general education, excellence in
education, special programs, facilities and
technology, nutrition and accounting, libraries, early
education, prevention, self-sufficiency and lifelong
learning, state agencies, forecast deficiencies, and
technical and conforming amendments; authorizing
rulemaking; providing for reports; appropriating
money; amending Minnesota Statutes 2004, sections
13.32, subdivisions 1, 8; 119A.46, subdivisions 1, 2,
3, 8; 120A.05, by adding a subdivision; 120A.22,
subdivision 12; 120B.02; 120B.021, subdivision 1, by
adding a subdivision; 120B.024; 120B.11, subdivisions
1, 2, 3, 4, 5, 8; 120B.13, subdivisions 1, 3, by
adding a subdivision; 120B.23; 120B.30, subdivisions
1, 1a; 120B.31, subdivision 4; 121A.03, subdivision 1;
121A.06, subdivisions 2, 3; 121A.17, subdivisions 1,
3, 5; 121A.19; 121A.41, subdivision 10; 121A.47,
subdivision 14; 121A.53; 121A.55; 122A.06, subdivision
4; 122A.09, subdivisions 4, 10; 122A.12, subdivision
2; 122A.18, subdivision 2a; 122A.40, subdivision 5;
122A.41, subdivisions 2, 14; 122A.414; 122A.415,
subdivisions 1, 3; 123A.05, subdivision 2; 123A.06,
subdivision 1; 123A.24, subdivision 2; 123B.02, by
adding a subdivision; 123B.09, subdivision 8;
123B.143, subdivision 1; 123B.36, subdivision 1;
123B.42, subdivision 3; 123B.49, subdivision 4;
123B.53, subdivision 1; 123B.54; 123B.59, subdivisions
3, 3a; 123B.63, subdivision 2; 123B.71, subdivisions
8, 9, 12; 123B.749; 123B.75, subdivision 5, by adding
a subdivision; 123B.76, subdivision 3; 123B.79,
subdivision 6; 123B.81, subdivision 1; 123B.82;
123B.83, subdivision 2; 123B.92, subdivisions 1, 5, 9;
124D.095, subdivision 8; 124D.10, subdivisions 3, 4,
6, 8, 15, 23; 124D.11, subdivisions 1, 2, 5, 6;
124D.111, subdivisions 1, 2; 124D.118, subdivision 4;
124D.135, subdivisions 1, 5; 124D.15, subdivisions 1,
3, 5, 10, 12, by adding subdivisions; 124D.16,
subdivisions 2, 3; 124D.20, subdivision 3; 124D.40;
124D.52, subdivision 3; 124D.531, subdivisions 1, 4;
124D.66, subdivision 3; 124D.68, subdivision 9;
124D.69, subdivision 1; 124D.74, subdivision 1;
124D.81, subdivision 1; 124D.84, subdivision 1;
125A.091, subdivision 5; 125A.11, subdivision 1;
125A.24; 125A.28; 125A.51; 125A.76, subdivisions 1, 4,
by adding subdivisions; 125A.79, subdivisions 1, 5, 6,
7, by adding subdivisions; 126C.01, subdivision 11;
126C.05, by adding a subdivision; 126C.10,
subdivisions 1, 2, 3, 6, 7, 8, 13, 13a, 17, 18, 24,
31, by adding subdivisions; 126C.13, subdivision 4;
126C.15, subdivisions 1, 2, 3, by adding a
subdivision; 126C.17, subdivisions 2, 5, 7, 9, 13;
126C.21, subdivision 4; 126C.40, subdivision 1;
126C.43, subdivisions 2, 3; 126C.44; 126C.457;
126C.48, subdivisions 2, 8, by adding a subdivision;
126C.63, subdivisions 5, 8; 127A.41, subdivision 8;
127A.42, subdivision 2; 127A.45, subdivisions 2, 10,
11, 12, 13, 14, 16; 127A.47, subdivisions 7, 8;
127A.49, subdivisions 2, 3; 127A.50, subdivision 5;
128C.12, subdivisions 1, 3; 134.31, by adding a
subdivision; 171.04, subdivision 1; 171.05,
subdivisions 2, 2b, 3; 179A.03, subdivision 14;
260C.007, subdivision 6, by adding a subdivision;
260C.201, subdivision 1; 275.14; 275.16; 469.177,
subdivision 9; Laws 1996, chapter 412, article 5,
section 24; Laws 2003, First Special Session chapter
9, article 1, sections 51; 53, subdivisions 2, as
amended, 3, as amended, 11, as amended, 12, as
amended; Laws 2003, First Special Session chapter 9,
article 2, section 55, subdivisions 2, as amended, 5,
as amended, 9, as amended, 12, as amended; Laws 2003,
First Special Session chapter 9, article 3, section
20, subdivisions 2, 4, as amended, 5, as amended, 6,
as amended, 8, as amended, 9, as amended; Laws 2003,
First Special Session chapter 9, article 4, section
31, subdivisions 2, as amended, 3, as amended, 4; Laws
2003, First Special Session chapter 9, article 5,
section 35, subdivision 3, as amended; Laws 2003,
First Special Session chapter 9, article 6, section 4,
as amended; Laws 2003, First Special Session chapter
9, article 7, section 11, subdivisions 2, 4; Laws
2003, First Special Session chapter 9, article 8,
section 7, subdivisions 2, as amended, 3, 5, as
amended; Laws 2003, First Special Session chapter 9,
article 9, section 9, subdivision 2, as amended;
proposing coding for new law in Minnesota Statutes,
chapters 120A; 120B; 121A; 122A; 123A; 123B; 124D;
125B; 129C; 171; repealing Minnesota Statutes 2004,
sections 122A.24; 122A.415, subdivision 2; 123B.83,
subdivision 1; 124D.095, subdivision 9; 124D.15,
subdivisions 2, 4, 6, 7, 8, 9, 11, 13; 124D.16,
subdivisions 1, 4; 126C.12; 126C.42, subdivisions 1,
4; 128C.12, subdivision 4.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

ARTICLE 1

GENERAL EDUCATION

Section 1.

Minnesota Statutes 2004, section 120A.05, is
amended by adding a subdivision to read:

new text begin Subd. 18. new text end

new text begin Kindergarten. new text end

new text begin "Kindergarten" means a program
designed for pupils five years of age on September 1 of the
calendar year in which the school year commences that prepares
pupils to enter first grade the following school year. A
program designed for pupils younger than five years of age on
September 1 of the calendar year in which the school year
commences that prepares pupils to enter kindergarten the
following school year is a prekindergarten program.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day
following final enactment.
new text end

Sec. 2.

Minnesota Statutes 2004, section 123A.05,
subdivision 2, is amended to read:

Subd. 2.

Reserve revenue.

Each district that is a member
of an area learning center must reserve revenue in an amount
equal to new text begin the sum of (1) new text end at least 90 percent of the district
average general education revenue per pupil unit minus an amount
equal to the product of the formula allowance according to
section 126C.10, subdivision 2, times .0485, calculated without
basic skills revenue deleted text begin , deleted text end new text begin and new text end transportation sparsity revenue, deleted text begin and
the transportation portion of the transition revenue adjustment,
deleted text end times the number of pupil units attending an area learning
center program under this section new text begin , plus (2) the amount of basic
skills revenue generated by pupils attending the area learning
center new text end . The amount of reserved revenue under this subdivision
may only be spent on program costs associated with the area
learning center. deleted text begin Compensatory revenue must be allocated
according to section 126C.15, subdivision 2.
deleted text end

Sec. 3.

Minnesota Statutes 2004, section 123B.42,
subdivision 3, is amended to read:

Subd. 3.

Cost; limitation.

(a) The cost per pupil of the
textbooks, individualized instructional or cooperative learning
materials, and standardized tests provided for in this section
for each school year must not exceed the statewide average
expenditure per pupil, adjusted deleted text begin pursuant deleted text end new text begin according new text end to deleted text begin clause
deleted text end new text begin paragraph new text end (b), by the Minnesota public elementary and secondary
schools for textbooks, individualized instructional materials
and standardized tests as computed and established by the
department by February 1 of the preceding school year from the
most recent public school year data then available.

(b) The cost computed in deleted text begin clause deleted text end new text begin paragraph new text end (a) shall be
increased by an inflation adjustment equal to deleted text begin the percent of
increase in the formula allowance, pursuant to section 126C.10,
subdivision 2, from the second preceding school year to the
current school year deleted text end new text begin 3.0 percent for fiscal year 2006, 6.19
percent for fiscal year 2007, and 3.1 percent for fiscal year
2008 new text end .

(c) The commissioner shall allot to the districts or
intermediary service areas the total cost for each school year
of providing or loaning the textbooks, individualized
instructional or cooperative learning materials, and
standardized tests for the pupils in each nonpublic school. The
allotment shall not exceed the product of the statewide average
expenditure per pupil, according to clause (a), adjusted
pursuant to clause (b), multiplied by the number of nonpublic
school pupils who make requests pursuant to this section and who
are enrolled as of September 15 of the current school year.

Sec. 4.

Minnesota Statutes 2004, section 123B.75, is
amended by adding a subdivision to read:

new text begin Subd. 4a. new text end

new text begin Taconite revenue. new text end

new text begin Taconite revenue received in
a calendar year by a school district under section 298.28,
subdivisions 4, paragraphs (b) and (c), and 11, paragraph (d),
is fully recognized in the fiscal year in which the February
payment falls.
new text end

[EFFECTIVE DATE.] new text begin This section is effective for revenue for
fiscal year 2006.
new text end

Sec. 5.

Minnesota Statutes 2004, section 123B.76,
subdivision 3, is amended to read:

Subd. 3.

Expenditures by building.

(a) For the purposes
of this section, "building" means education site as defined in
section 123B.04, subdivision 1.

(b) Each district shall maintain separate accounts to
identify general fund expenditures deleted text begin , excluding capital
expenditures and pupil transportation, deleted text end for each building. All
expenditures for regular instruction, secondary vocational
instruction, and school administration must be reported to the
department separately for each building. All expenditures for
special education instruction, instructional support services,
and pupil support services provided within a specific building
must be reported to the department separately for each
building. Salary expenditures reported by building must reflect
actual salaries for staff at the building and must not be based
on districtwide averages. All other general fund expenditures
may be reported new text begin by building or new text end on a districtwide basis.

(c) The department must annually report information showing
school district general fund expenditures per pupil by program
category for each building and estimated school district general
fund revenue generated by pupils attending each building on its
Web site. For purposes of this report:

(1) expenditures not deleted text begin required to be deleted text end reported by building
shall be allocated among buildings on a uniform per pupil basis;

(2) basic skills revenue shall be allocated according to
section 126C.10, subdivision 4;

(3) secondary sparsity revenue and elementary sparsity
revenue shall be allocated according to section 126C.10,
subdivisions 7 and 8;

(4) other general education revenue shall be allocated on a
uniform per pupil unit basis;

(5) first grade preparedness aid shall be allocated
according to section 124D.081;

(6) state and federal special education aid and Title I aid
shall be allocated in proportion to district expenditures for
these programs by building; and

(7) other general fund revenues shall be allocated on a
uniform per pupil basis, except that the department may allocate
other revenues attributable to specific buildings directly to
those buildings.

Sec. 6.

Minnesota Statutes 2004, section 123B.79,
subdivision 6, is amended to read:

Subd. 6.

Account transfer for statutory operating debt.

On June 30 of each year, a district may make a permanent
transfer from the general fund account entitled " deleted text begin undesignated
deleted text end new text begin net unreserved general new text end fund balance since statutory operating
debt" to the account entitled "reserved fund balance reserve
account for purposes of statutory operating debt reduction."
The amount of the transfer is limited to the lesser of (a) the
net deleted text begin undesignated operating deleted text end new text begin unreserved general new text end fund balance, or
(b) the sum of the remaining statutory operating debt levies
authorized for all future years according to section 126C.42,
subdivision 1. If the net deleted text begin undesignated operating deleted text end new text begin unreserved
general new text end fund balance is less than zero, the district may not
make a transfer.

Sec. 7.

Minnesota Statutes 2004, section 123B.81,
subdivision 1, is amended to read:

Subdivision 1.

Operating debt.

The "operating debt" of a
school district means the net negative deleted text begin undesignated deleted text end new text begin unreserved
general new text end fund balance deleted text begin in all school district funds, other than
capital expenditure, building construction, debt service, and
trust and agency, deleted text end calculated as of June 30 of each year in
accordance with the uniform financial accounting and reporting
standards for Minnesota school districts.

Sec. 8.

Minnesota Statutes 2004, section 123B.82, is
amended to read:

123B.82 REORGANIZATION OPERATING DEBT.

The "reorganization operating debt" of a school district
means the net negative deleted text begin undesignated deleted text end new text begin unreserved new text end fund deleted text begin balance
deleted text end new text begin balances new text end in all school district funds, other than building
construction, debt redemption, and trust and agency, calculated
in accordance with the uniform financial accounting and
reporting standards for Minnesota school districts as of:

(1) June 30 of the fiscal year before the first year that a
district receives revenue according to section 123A.39,
subdivision 3; or

(2) June 30 of the fiscal year before the effective date of
reorganization according to section 123A.46 or 123A.48.

Sec. 9.

Minnesota Statutes 2004, section 123B.83,
subdivision 2, is amended to read:

Subd. 2.

deleted text begin undesignated deleted text end new text begin unreserved new text end fund balances.

deleted text begin Beginning in fiscal year 1978 and each year thereafter, any deleted text end new text begin A
school new text end district deleted text begin not subject to the provisions of subdivision 1
deleted text end must limit its expenditures so that its deleted text begin undesignated deleted text end new text begin net
unreserved general new text end fund deleted text begin balances do deleted text end new text begin balance does new text end not constitute
statutory operating debt as defined in section 126C.42.

Sec. 10.

Minnesota Statutes 2004, section 123B.92,
subdivision 1, is amended to read:

Subdivision 1.

Definitions.

For purposes of this section
and section 125A.76, the terms defined in this subdivision have
the meanings given to them.

(a) "Actual expenditure per pupil transported in the
regular and excess transportation categories" means the quotient
obtained by dividing:

(1) the sum of:

(i) all expenditures for transportation in the regular
category, as defined in paragraph (b), clause (1), and the
excess category, as defined in paragraph (b), clause (2), plus

(ii) an amount equal to one year's depreciation on the
district's school bus fleet and mobile units computed on a
straight line basis at the rate of 15 percent per year for
districts operating a program under section 124D.128 for grades
1 to 12 for all students in the district and 12-1/2 percent per
year for other districts of the cost of the fleet, plus

(iii) an amount equal to one year's depreciation on the
district's type three school buses, as defined in section
169.01, subdivision 6, clause (5), which must be used a majority
of the time for pupil transportation purposes, computed on a
straight line basis at the rate of 20 percent per year of the
cost of the type three school buses by:

(2) the number of pupils eligible for transportation in the
regular category, as defined in paragraph (b), clause (1), and
the excess category, as defined in paragraph (b), clause (2).

(b) "Transportation category" means a category of
transportation service provided to pupils as follows:

(1) Regular transportation is:

(i) transportation to and from school during the regular
school year for resident elementary pupils residing one mile or
more from the public or nonpublic school they attend, and
resident secondary pupils residing two miles or more from the
public or nonpublic school they attend, excluding desegregation
transportation and noon kindergarten transportation; but with
respect to transportation of pupils to and from nonpublic
schools, only to the extent permitted by sections 123B.84 to
123B.87;

(ii) transportation of resident pupils to and from language
immersion programs;

(iii) transportation of a pupil who is a custodial parent
and that pupil's child between the pupil's home and the child
care provider and between the provider and the school, if the
home and provider are within the attendance area of the school;

(iv) transportation to and from or board and lodging in
another district, of resident pupils of a district without a
secondary school; and

(v) transportation to and from school during the regular
school year required under subdivision 3 for nonresident
elementary pupils when the distance from the attendance area
border to the public school is one mile or more, and for
nonresident secondary pupils when the distance from the
attendance area border to the public school is two miles or
more, excluding desegregation transportation and noon
kindergarten transportation.

For the purposes of this paragraph, a district may
designate a licensed day care facility, respite care facility,
the residence of a relative, or the residence of a person chosen
by the pupil's parent or guardian as the home of a pupil for
part or all of the day, if requested by the pupil's parent or
guardian, and if that facility or residence is within the
attendance area of the school the pupil attends.

(2) Excess transportation is:

(i) transportation to and from school during the regular
school year for resident secondary pupils residing at least one
mile but less than two miles from the public or nonpublic school
they attend, and transportation to and from school for resident
pupils residing less than one mile from school who are
transported because of extraordinary traffic, drug, or crime
hazards; and

(ii) transportation to and from school during the regular
school year required under subdivision 3 for nonresident
secondary pupils when the distance from the attendance area
border to the school is at least one mile but less than two
miles from the public school they attend, and for nonresident
pupils when the distance from the attendance area border to the
school is less than one mile from the school and who are
transported because of extraordinary traffic, drug, or crime
hazards.

(3) Desegregation transportation is transportation within
and outside of the district during the regular school year of
pupils to and from schools located outside their normal
attendance areas under a plan for desegregation mandated by the
commissioner or under court order.

(4) "Transportation services for pupils with disabilities"
is:

(i) transportation of pupils with disabilities who cannot
be transported on a regular school bus between home or a respite
care facility and school;

(ii) necessary transportation of pupils with disabilities
from home or from school to other buildings, including centers
such as developmental achievement centers, hospitals, and
treatment centers where special instruction or services required
by sections 125A.03 to 125A.24, 125A.26 to 125A.48, and 125A.65
are provided, within or outside the district where services are
provided;

(iii) necessary transportation for resident pupils with
disabilities required by sections 125A.12, and 125A.26 to
125A.48;

(iv) board and lodging for pupils with disabilities in a
district maintaining special classes;

(v) transportation from one educational facility to another
within the district for resident pupils enrolled on a
shared-time basis in educational programs, and necessary
transportation required by sections 125A.18, and 125A.26 to
125A.48, for resident pupils with disabilities who are provided
special instruction and services on a shared-time basis new text begin or if
resident pupils are not transported, the costs of necessary
travel between public and private schools or neutral
instructional sites by essential personnel employed by the
district's program for children with a disability new text end ;

(vi) transportation for resident pupils with disabilities
to and from board and lodging facilities when the pupil is
boarded and lodged for educational purposes; and

(vii) services described in clauses (i) to (vi), when
provided for pupils with disabilities in conjunction with a
summer instructional program that relates to the pupil's
individual education plan or in conjunction with a learning year
program established under section 124D.128.

new text begin For purposes of computing special education base revenue
under section 125A.76, subdivision 2, the cost of providing
transportation for children with disabilities includes (A) the
additional cost of transporting a homeless student from a
temporary nonshelter home in another district to the school of
origin, or a formerly homeless student from a permanent home in
another district to the school of origin but only through the
end of the academic year; and (B) depreciation on district-owned
school buses purchased after July 1, 2005, and used primarily
for transportation of pupils with disabilities, calculated
according to paragraph (a), clauses (ii) and (iii).
Depreciation costs included in the disabled transportation
category must be excluded in calculating the actual expenditure
per pupil transported in the regular and excess transportation
categories according to paragraph (a).
new text end

(5) "Nonpublic nonregular transportation" is:

(i) transportation from one educational facility to another
within the district for resident pupils enrolled on a
shared-time basis in educational programs, excluding
transportation for nonpublic pupils with disabilities under
clause (4);

(ii) transportation within district boundaries between a
nonpublic school and a public school or a neutral site for
nonpublic school pupils who are provided pupil support services
pursuant to section 123B.44; and

(iii) late transportation home from school or between
schools within a district for nonpublic school pupils involved
in after-school activities.

(c) "Mobile unit" means a vehicle or trailer designed to
provide facilities for educational programs and services,
including diagnostic testing, guidance and counseling services,
and health services. A mobile unit located off nonpublic school
premises is a neutral site as defined in section 123B.41,
subdivision 13.

Sec. 11.

Minnesota Statutes 2004, section 123B.92,
subdivision 5, is amended to read:

Subd. 5.

District reports.

new text begin (a) new text end Each district must report
data to the department as required by the department to account
for transportation expenditures.

new text begin (b) Salaries and fringe benefits of district employees
whose primary duties are other than transportation, including
central office administrators and staff, building administrators
and staff, teachers, social workers, school nurses, and
instructional aides, must not be included in a district's
transportation expenditures, except that a district may include
salaries and benefits according to paragraph (c) for (1) an
employee designated as the district transportation director, (2)
an employee providing direct support to the transportation
director, or (3) an employee providing direct transportation
services such as a bus driver or bus aide.
new text end

new text begin (c) Salaries and fringe benefits of other district
employees who work part time in transportation and part time in
other areas must not be included in a district's transportation
expenditures unless the district maintains documentation of the
employee's time spent on pupil transportation matters in the
form and manner prescribed by the department.
new text end

new text begin (d) Pupil transportation expenditures, excluding
expenditures for capital outlay, leased buses, student board and
lodging, crossing guards, and aides on buses, must be allocated
among transportation categories based on cost-per-mile,
cost-per-student, cost-per-hour, or cost-per-route, regardless
of whether the transportation services are provided on
district-owned or contractor-owned school buses. Expenditures
for school bus driver salaries and fringe benefits may either be
directly charged to the appropriate transportation category or
may be allocated among transportation categories based on
cost-per-mile, cost-per-student, cost-per-hour, or
cost-per-route. Expenditures by private contractors or
individuals who provide transportation exclusively in one
transportation category must be charged directly to the
appropriate transportation category. Transportation services
provided by contractor-owned school bus companies incorporated
under different names but owned by the same individual or group
of individuals must be treated as the same company for cost
allocation purposes.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for expenditure
reporting for fiscal year 2006.
new text end

Sec. 12.

Minnesota Statutes 2004, section 123B.92,
subdivision 9, is amended to read:

Subd. 9.

Nonpublic pupil transportation aid.

(a) A
district's nonpublic pupil transportation aid for deleted text begin the 1996-1997
and later school years for deleted text end transportation services for nonpublic
school pupils according to sections 123B.88, 123B.84 to 123B.86,
and this section, equals the sum of the amounts computed in
paragraphs (b) and (c). This aid does not limit the obligation
to transport pupils under sections 123B.84 to 123B.87.

(b) For regular and excess transportation according to
subdivision 1, paragraph (b), clauses (1) and (2), an amount
equal to the product of:

(1) the district's actual expenditure per pupil transported
in the regular and excess transportation categories during the
second preceding school year; times

(2) the number of nonpublic school pupils residing in the
district who receive regular or excess transportation service or
reimbursement for the current school year; times

(3) deleted text begin the ratio of the formula allowance pursuant to section
126C.10, subdivision 2, for the current school year to the
formula allowance pursuant to section 126C.10, subdivision 2,
for the second preceding school year deleted text end new text begin 1.03 for fiscal year 2006,
1.0619 for fiscal year 2007, 1.031 for fiscal year 2008, and 1.0
for fiscal year 2009 and later new text end .

(c) For nonpublic nonregular transportation according to
subdivision 1, paragraph (b), clause (5), an amount equal to the
product of:

(1) the district's actual expenditure for nonpublic
nonregular transportation during the second preceding school
year; times

(2) deleted text begin the ratio of the formula allowance pursuant to section
126C.10, subdivision 2, for the current school year to the
formula allowance pursuant to section 126C.10, subdivision 2,
for the second preceding school year deleted text end new text begin 1.03 for fiscal year 2006,
1.0619 for fiscal year 2007, 1.031 for fiscal year 2008, and 1.0
for fiscal year 2009 and later new text end .

deleted text begin (d) Notwithstanding the amount of the formula allowance for
fiscal year 2004 in section 126C.10, subdivision 2, the
commissioner shall use the amount of the formula allowance for
the current year minus $415 in determining the nonpublic pupil
transportation revenue in paragraphs (b) and (c) for fiscal year
2004.
deleted text end

Sec. 13.

Minnesota Statutes 2004, section 124D.68,
subdivision 9, is amended to read:

Subd. 9.

Enrollment verification.

(a) For a pupil
attending an eligible program full time under subdivision 3,
paragraph (d), the department must pay 90 percent of the
district's average general education revenue less basic skills
revenue to the eligible program and ten percent of the
district's average general education revenue less basic skills
revenue to the contracting district within 30 days after the
eligible program verifies enrollment using the form provided by
the department. For a pupil attending an eligible program part
time, revenue new text begin , excluding compensatory revenue, new text end shall be reduced
proportionately, according to the amount of time the pupil
attends the program, and the payments to the eligible program
and the contracting district shall be reduced accordingly. A
pupil for whom payment is made according to this section may not
be counted by any district for any purpose other than
computation of general education revenue. If payment is made
for a pupil under this subdivision, a district shall not
reimburse a program under section 124D.69 for the same
pupil. new text begin The new text end basic skills revenue deleted text begin shall be paid deleted text end new text begin generated by
pupils attending the eligible program new text end according to section
126C.10, subdivision 4 new text begin , shall be paid to the eligible program new text end .

(b) The department must pay up to 100 percent of the
revenue to the eligible program if there is an agreement to that
effect between the school district and the eligible program.

(c) Notwithstanding paragraphs (a) and (b), for an eligible
program that provides chemical treatment services to students,
the department must pay 100 percent of the revenue to the
eligible program.

Sec. 14.

Minnesota Statutes 2004, section 124D.69,
subdivision 1, is amended to read:

Subdivision 1.

Aid.

If a pupil enrolls in an alternative
program, eligible under section 124D.68, subdivision 3,
paragraph (d), or subdivision 4, operated by a private
organization that has contracted with a school district to
provide educational services for eligible pupils under section
124D.68, subdivision 2, the district contracting with the
private organization must reimburse the provider an amount equal
to new text begin the sum of (1) new text end at least 95 percent of the district's average
general education less basic skills revenue per pupil unit times
the number of pupil units for pupils attending the program deleted text begin . deleted text end new text begin , and
(2) the amount of new text end basic skills revenue deleted text begin shall be paid deleted text end new text begin generated
by pupils attending the program new text end according to section 126C.10,
subdivision 4. deleted text begin Compensatory revenue must be allocated according
to section 126C.15, subdivision 2. deleted text end For a pupil attending the
program part time, the revenue paid to the program new text begin , excluding
compensatory revenue, new text end must be reduced proportionately, according
to the amount of time the pupil attends the program, and revenue
paid to the district shall be reduced accordingly. Pupils for
whom a district provides reimbursement may not be counted by the
district for any purpose other than computation of general
education revenue. If payment is made to a district or program
for a pupil under this section, the department must not make a
payment for the same pupil under section 124D.68, subdivision 9.
new text begin Notwithstanding sections 125A.15, 125A.51, and 125A.515, general
education revenue for a student who receives educational
services under this section shall be paid according to this
section.
new text end

Sec. 15.

Minnesota Statutes 2004, section 125A.51, is
amended to read:

125A.51 PLACEMENT OF CHILDREN WITHOUT DISABILITIES;
EDUCATION AND TRANSPORTATION.

The responsibility for providing instruction and
transportation for a pupil without a disability who has a
short-term or temporary physical or emotional illness or
disability, as determined by the standards of the commissioner,
and who is temporarily placed for care and treatment for that
illness or disability, must be determined as provided in this
section.

(a) The school district of residence of the pupil is the
district in which the pupil's parent or guardian resides.

(b) When parental rights have been terminated by court
order, the legal residence of a child placed in a residential or
foster facility for care and treatment is the district in which
the child resides.

(c) Before the placement of a pupil for care and treatment,
the district of residence must be notified and provided an
opportunity to participate in the placement decision. When an
immediate emergency placement is necessary and time does not
permit resident district participation in the placement
decision, the district in which the pupil is temporarily placed,
if different from the district of residence, must notify the
district of residence of the emergency placement within 15 days
of the placement.

(d) When a pupil without a disability is temporarily placed
for care and treatment in a day program and the pupil continues
to live within the district of residence during the care and
treatment, the district of residence must provide instruction
and necessary transportation to and from the treatment facility
for the pupil. Transportation shall only be provided by the
district during regular operating hours of the district. The
district may provide the instruction at a school within the
district of residence, at the pupil's residence, or in the case
of a placement outside of the resident district, in the district
in which the day treatment program is located by paying tuition
to that district. The district of placement may contract with a
facility to provide instruction by teachers licensed by the
state Board of Teaching.

(e) When a pupil without a disability is temporarily placed
in a residential program for care and treatment, the district in
which the pupil is placed must provide instruction for the pupil
and necessary transportation while the pupil is receiving
instruction, and in the case of a placement outside of the
district of residence, the nonresident district must bill the
district of residence for the actual cost of providing the
instruction for the regular school year and for summer school,
excluding transportation costs.

new text begin (f) Notwithstanding paragraph (e), if the pupil is homeless
and placed in a public or private homeless shelter, then the
district that enrolls the pupil under section 127A.47,
subdivision 2, shall provide the transportation, unless the
district that enrolls the pupil and the district in which the
pupil is temporarily placed agree that the district in which the
pupil is temporarily placed shall provide transportation. new text end When
a pupil without a disability is temporarily placed in a
residential program outside the district of residence, the
administrator of the court placing the pupil must send timely
written notice of the placement to the district of residence.
The district of placement may contract with a residential
facility to provide instruction by teachers licensed by the
state Board of Teaching. For purposes of this section, the state
correctional facilities operated on a fee-for-service basis are
considered to be residential programs for care and treatment.

deleted text begin (f) deleted text end new text begin (g) new text end The district of residence must include the pupil in
its residence count of pupil units and pay tuition as provided
in section 123A.488 to the district providing the instruction.
Transportation costs must be paid by the district providing the
transportation and the state must pay transportation aid to that
district. For purposes of computing state transportation aid,
pupils governed by this subdivision must be included in the
disabled transportation category new text begin if the pupils cannot be
transported on a regular school bus route without special
accommodations new text end .

Sec. 16.

Minnesota Statutes 2004, section 126C.01,
subdivision 11, is amended to read:

Subd. 11.

Net deleted text begin unappropriated operating deleted text end new text begin unreserved general
new text end fund balance.

"Net deleted text begin unappropriated operating deleted text end new text begin unreserved general
new text end fund balance" means the sum of the new text begin unreserved general new text end fund
deleted text begin balances in the general, food service, and community service
funds minus the balances reserved for statutory operating debt
reduction, bus purchase, severance pay, taconite, unemployment
benefits, maintenance levy reduction, operating capital,
disabled access, health and safety, deleted text end new text begin balance new text end and encumbrances,
computed as of June 30 each year.

Sec. 17.

Minnesota Statutes 2004, section 126C.05, is
amended by adding a subdivision to read:

new text begin Subd. 20. new text end

new text begin Project-based average daily membership. new text end

new text begin (a) To
receive general education revenue for a pupil enrolled in a
public school with a project-based program, a school must meet
the requirements in this paragraph. The school must:
new text end

new text begin (1) register with the commissioner as a project-based
program by May 30 of the preceding fiscal year;
new text end

new text begin (2) provide a minimum teacher contact of no less than one
hour per week per project-based credit for each pupil;
new text end

new text begin (3) maintain a record system that shows when each credit or
portion thereof was reported for membership for each pupil; and
new text end

new text begin (4) report pupil membership consistent with paragraph (b).
new text end

new text begin (b) The commissioner must develop a formula for reporting
pupil membership to compute average daily membership for each
registered project-based school. Average daily membership for a
pupil in a registered project-based program is the lesser of:
new text end

new text begin (1) 1.0; or
new text end

new text begin (2) the ratio of (i) the number of membership hours
generated by project-based credits completed during the school
year plus membership hours generated by credits completed in a
seat-based setting to (ii) the annual required instructional
hours at that grade level. Membership hours for a partially
completed project-based credit must be prorated.
new text end

Sec. 18.

Minnesota Statutes 2004, section 126C.10,
subdivision 1, is amended to read:

Subdivision 1.

General education revenue.

deleted text begin (a) For fiscal
year 2003, the general education revenue for each district
equals the sum of the district's basic revenue, basic skills
revenue, training and experience revenue, secondary sparsity
revenue, elementary sparsity revenue, transportation sparsity
revenue, total operating capital revenue, and equity revenue.
deleted text end

deleted text begin (b) deleted text end For fiscal year deleted text begin 2004 deleted text end new text begin 2006 new text end and later, the general
education revenue for each district equals the sum of the
district's basic revenue, extended time revenue, new text begin gifted and
talented revenue, new text end basic skills revenue, training and experience
revenue, secondary sparsity revenue, elementary sparsity
revenue, transportation sparsity revenue, total operating
capital revenue, equity revenue, new text begin alternative compensation
revenue, new text end and transition revenue.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for revenue for
fiscal year 2006.
new text end

Sec. 19.

Minnesota Statutes 2004, section 126C.10,
subdivision 2, is amended to read:

Subd. 2.

Basic revenue.

The basic revenue for each
district equals the formula allowance times the adjusted
marginal cost pupil units for the school year. The formula
allowance for fiscal year deleted text begin 2001 deleted text end new text begin 2006 new text end is deleted text begin $3,964. The formula
allowance for fiscal year 2002 is $4,068. The formula allowance
for fiscal year 2003 and subsequent years is $4,601 deleted text end new text begin $4,740 new text end . new text begin The
formula allowance for fiscal year 2007 and later is $4,885.
new text end

Sec. 20.

Minnesota Statutes 2004, section 126C.10, is
amended by adding a subdivision to read:

new text begin Subd. 2b. new text end

new text begin Gifted and talented revenue. new text end

new text begin Gifted and
talented revenue for each district equals $15 times the
district's adjusted marginal cost pupil units. For fiscal year
2006 only, a district is eligible for start-up revenue equal to
$3 times the adjusted marginal cost pupil units for that year.
A school district must reserve gifted and talented revenue and,
consistent with section 120B.15, must spend the revenue only to:
new text end

new text begin (1) identify gifted and talented students;
new text end

new text begin (2) provide education programs for gifted and talented
students; or
new text end

new text begin (3) provide staff development to prepare teachers to best
meet the unique needs of gifted and talented students.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for revenue for
fiscal year 2006 and later.
new text end

Sec. 21.

Minnesota Statutes 2004, section 126C.10,
subdivision 3, is amended to read:

Subd. 3.

Compensatory education revenue.

(a) new text begin For fiscal
year 2006 and later, new text end the compensatory education revenue for each
building in the district equals deleted text begin the formula allowance minus
$415 deleted text end new text begin $4,186 new text end times the compensation revenue pupil units computed
according to section 126C.05, subdivision 3. Revenue shall be
paid to the district and must be allocated according to section
126C.15, subdivision 2.

(b) When the district contracting with an alternative
program under section 124D.69 changes prior to the start of a
school year, the compensatory revenue generated by pupils
attending the program shall be paid to the district contracting
with the alternative program for the current school year, and
shall not be paid to the district contracting with the
alternative program for the prior school year.

(c) When the fiscal agent district for an area learning
center changes prior to the start of a school year, the
compensatory revenue shall be paid to the fiscal agent district
for the current school year, and shall not be paid to the fiscal
agent district for the prior school year.

Sec. 22.

Minnesota Statutes 2004, section 126C.10,
subdivision 6, is amended to read:

Subd. 6.

Definitions.

The definitions in this
subdivision apply only to subdivisions 7 and 8.

(a) "High school" means a secondary school that has pupils
enrolled in at least the 10th, 11th, and 12th grades. If there
is no secondary school in the district that has pupils enrolled
in at least the 10th, 11th, and 12th grades, and the school is
at least 19 miles from the next nearest school, the commissioner
must designate one school in the district as a high school for
the purposes of this section.

(b) "Secondary average daily membership" means, for a
district that has only one high school, the average daily
membership of pupils served in grades 7 through 12. For a
district that has more than one high school, "secondary average
daily membership" for each high school means the product of the
average daily membership of pupils served in grades 7 through 12
in the high school, times the ratio of six to the number of
grades in the high school.

(c) "Attendance area" means the total surface area of the
district, in square miles, divided by the number of high schools
in the district. For a district that does not operate a high
school and is less than 19 miles from the nearest operating high
school, the attendance area equals zero.

(d) "Isolation index" for a high school means the square
root of 55 percent of the attendance area plus the distance in
miles, according to the usually traveled routes, between the
high school and the nearest high school. For a district in
which there is located land defined in section 84A.01, 84A.20,
or 84A.31, the distance in miles is the sum of:

(1) the square root of one-half of the attendance area; and

(2) the distance from the border of the district to the
nearest high school.

(e) "Qualifying high school" means a high school that has
an isolation index greater than 23 and that has secondary
average daily membership of less than 400.

(f) "Qualifying elementary school" means an elementary
school that is located 19 miles or more from the nearest
elementary school or from the nearest elementary school within
the district and, in either case, has an elementary average
daily membership of an average of 20 or fewer per grade.

(g) "Elementary average daily membership" means, for a
district that has only one elementary school, the average daily
membership of pupils served in kindergarten through grade 6.
For a district that has more than one elementary school,
"average daily membership" for each school means the average
daily membership of pupils served in kindergarten through grade
6 multiplied by the ratio of seven to the number of grades in
the elementary school.

new text begin (h) "Sparsity allowance" means $4,740 for fiscal year 2006
and $4,885 for fiscal year 2007 and later.
new text end

Sec. 23.

Minnesota Statutes 2004, section 126C.10,
subdivision 7, is amended to read:

Subd. 7.

Secondary sparsity revenue.

(a) A district's
secondary sparsity revenue for a school year equals the sum of
the results of the following calculation for each qualifying
high school in the district:

(1) the deleted text begin formula deleted text end new text begin sparsity new text end allowance for the school year,
multiplied by

(2) the secondary average daily membership of pupils served
in the high school, multiplied by

(3) the quotient obtained by dividing 400 minus the
secondary average daily membership by 400 plus the secondary
daily membership, multiplied by

(4) the lesser of 1.5 or the quotient obtained by dividing
the isolation index minus 23 by ten.

(b) A newly formed district that is the result of districts
combining under the cooperation and combination program or
consolidating under section 123A.48 must receive secondary
sparsity revenue equal to the greater of: (1) the amount
calculated under paragraph (a) for the combined district; or (2)
the sum of the amounts of secondary sparsity revenue the former
districts had in the year prior to consolidation, increased for
any subsequent changes in the secondary sparsity formula.

Sec. 24.

Minnesota Statutes 2004, section 126C.10,
subdivision 8, is amended to read:

Subd. 8.

Elementary sparsity revenue.

A district's
elementary sparsity revenue equals the sum of the following
amounts for each qualifying elementary school in the district:

(1) the deleted text begin formula deleted text end new text begin sparsity new text end allowance for the year, multiplied
by

(2) the elementary average daily membership of pupils
served in the school, multiplied by

(3) the quotient obtained by dividing 140 minus the
elementary average daily membership by 140 plus the average
daily membership.

Sec. 25.

Minnesota Statutes 2004, section 126C.10,
subdivision 13, is amended to read:

Subd. 13.

Total operating capital revenue.

(a) For
fiscal year deleted text begin 2000 deleted text end new text begin 2006 new text end and thereafter, total operating capital
revenue for a district equals the amount determined under
paragraph (b) or (c), plus deleted text begin $73 deleted text end new text begin $93 new text end times the adjusted marginal
cost pupil units for the school year. The revenue must be
placed in a reserved account in the general fund and may only be
used according to deleted text begin paragraph (d) or deleted text end subdivision 14.

(b) For fiscal years deleted text begin 2000 deleted text end new text begin 2006 new text end and later, capital revenue
for a district equals $100 times the district's maintenance cost
index times its adjusted marginal cost pupil units for the
school year.

(c) deleted text begin For fiscal years 2000 and later, deleted text end The revenue for a
district that operates a program under section 124D.128, is
increased by an amount equal to $30 times the number of marginal
cost pupil units served at the site where the program is
implemented.

deleted text begin (d) For fiscal years 2001, 2002, and 2003, the district
must reserve an amount equal to $5 per adjusted marginal cost
pupil unit for telecommunication access costs. Reserve revenue
under this paragraph must first be used to pay for ongoing or
recurring telecommunication access costs, including access to
data and video connections, including Internet access. Any
revenue remaining after covering all ongoing or recurring access
costs may be used for computer hardware or equipment.
deleted text end

Sec. 26.

Minnesota Statutes 2004, section 126C.10,
subdivision 13a, is amended to read:

Subd. 13a.

Operating capital levy.

To obtain operating
capital revenue for fiscal year deleted text begin 2005 deleted text end new text begin 2007 new text end and later, a district
may levy an amount not more than the product of its operating
capital revenue for the fiscal year times the lesser of one or
the ratio of its adjusted net tax capacity per adjusted marginal
cost pupil unit to deleted text begin $22,222 deleted text end new text begin the operating capital equalizing
factor new text end . new text begin The operating capital equalizing factor equals $24,300
for taxes payable in 2006 and 2007, and $15,400 for taxes
payable in 2008 and later.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for revenue for
fiscal year 2007.
new text end

Sec. 27.

Minnesota Statutes 2004, section 126C.10,
subdivision 17, is amended to read:

Subd. 17.

Transportation sparsity definitions.

The
definitions in this subdivision apply to subdivisions 18 and 19.

(a) "Sparsity index" for a district means the greater of .2
or the ratio of the square mile area of the district to the
resident pupil units of the district.

(b) "Density index" for a district means the ratio of the
square mile area of the district to the resident pupil units of
the district. However, the density index for a district cannot
be greater than .2 or less than .005.

new text begin (c) "Transportation allowance" means $4,601 for fiscal year
2007 and later.
new text end

Sec. 28.

Minnesota Statutes 2004, section 126C.10,
subdivision 18, is amended to read:

Subd. 18.

Transportation sparsity revenue allowance.

(a)
A district's transportation sparsity allowance equals the
greater of zero or the result of the following computation:

deleted text begin (i) deleted text end new text begin (1) new text end Multiply the deleted text begin formula deleted text end new text begin transportation new text end allowance
deleted text begin according to subdivision 2, deleted text end by .1469.

deleted text begin (ii) deleted text end new text begin (2) new text end Multiply the result in clause deleted text begin (i) deleted text end new text begin (1) new text end by the
district's sparsity index raised to the 26/100 power.

deleted text begin (iii) deleted text end new text begin (3) new text end Multiply the result in clause deleted text begin (ii) deleted text end new text begin (2) new text end by the
district's density index raised to the 13/100 power.

deleted text begin (iv) deleted text end new text begin (4) new text end Multiply the deleted text begin formula deleted text end new text begin transportation new text end allowance
deleted text begin according to subdivision 2, deleted text end by .0485.

deleted text begin (v) deleted text end new text begin (5) new text end Subtract the result in clause deleted text begin (iv) deleted text end new text begin (4) new text end from the
result in clause deleted text begin (iii) deleted text end new text begin (3) new text end .

(b) Transportation sparsity revenue is equal to the
transportation sparsity allowance times the adjusted marginal
cost pupil units new text begin times 1.08 new text end .

Sec. 29.

Minnesota Statutes 2004, section 126C.10,
subdivision 24, is amended to read:

Subd. 24.

Equity revenue.

(a) A school district
qualifies for equity revenue if:

(1) the school district's adjusted marginal cost pupil unit
amount of basic revenue, supplemental revenue, transition
revenue, and referendum revenue is less than the value of the
school district at or immediately above the 95th percentile of
school districts in its equity region for those revenue
categories; and

(2) the school district's administrative offices are not
located in a city of the first class on July 1, 1999.

(b) Equity revenue for a qualifying district that receives
referendum revenue under section 126C.17, subdivision 4, equals
the product of (1) the district's adjusted marginal cost pupil
units for that year; times (2) the sum of (i) $13, plus (ii)
$75, times the school district's equity index computed under
subdivision 27.

(c) Equity revenue for a qualifying district that does not
receive referendum revenue under section 126C.17, subdivision 4,
equals the product of the district's adjusted marginal cost
pupil units for that year times $13.

new text begin (d) A school district's equity revenue is increased by the
greater of zero or an amount equal to the district's resident
marginal pupil units times the difference between ten percent of
the statewide average amount of referendum revenue per resident
marginal cost pupil unit for that year and the district's
referendum revenue per resident marginal cost pupil unit. A
school district's revenue under this paragraph must not exceed
$100,000 for that year.
new text end

new text begin (e) A school district's equity revenue for a school
district located in the metro equity region equals the amount
computed in paragraphs (b), (c), and (d) multiplied by 1.25.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for revenue for
fiscal year 2006.
new text end

Sec. 30.

Minnesota Statutes 2004, section 126C.10,
subdivision 31, is amended to read:

Subd. 31.

Transition revenue.

(a) A district's
transition allowance deleted text begin for fiscal years 2004 through 2008 deleted text end equals
the greater of zero or the product of the ratio of the number of
adjusted marginal cost pupil units the district would have
counted for fiscal year 2004 under Minnesota Statutes 2002 to
the district's adjusted marginal cost pupil units for fiscal
year 2004, times the difference between: (1) the lesser of the
district's general education revenue per adjusted marginal cost
pupil unit for fiscal year 2003 or the amount of general
education revenue the district would have received per adjusted
marginal cost pupil unit for fiscal year 2004 according to
Minnesota Statutes 2002, and (2) the district's general
education revenue for fiscal year 2004 excluding transition
revenue divided by the number of adjusted marginal cost pupil
units the district would have counted for fiscal year 2004 under
Minnesota Statutes 2002.

deleted text begin A district's transition allowance for fiscal year 2009 and
later is zero.
deleted text end

(b) A district's transition revenue for fiscal year deleted text begin 2004
and later deleted text end new text begin 2006 and later new text end equals new text begin the sum of (1) new text end the product of
the district's transition allowance times the district's
adjusted marginal cost pupil units deleted text begin . deleted text end new text begin plus (2) the amount of
referendum revenue under section 126C.17 and general education
revenue, excluding transition revenue, for fiscal year 2004
attributable to pupils four or five years of age on September 1,
2003, enrolled in a prekindergarten program implemented by the
district before July 1, 2003, and reported as kindergarten
pupils under section 126C.05, subdivision 1, for fiscal year
2004, plus (3) the amount of compensatory education revenue
under subdivision 3 for fiscal year 2005 attributable to pupils
four years of age on September 1, 2003, enrolled in a
prekindergarten program implemented by the district before July
1, 2003, and reported as kindergarten pupils under section
126C.05, subdivision 1, for fiscal year 2004.
new text end

Sec. 31.

Minnesota Statutes 2004, section 126C.10, is
amended by adding a subdivision to read:

new text begin Subd. 34. new text end

new text begin Basic alternative compensation aid. new text end

new text begin (a) For
fiscal year 2006, the basic alternative compensation aid for a
district or charter school with an alternative compensation plan
approved under section 122A.415 equals the alternative
compensation revenue according to section 122A.415, subdivision
1. The basic alternative compensation aid for a charter school
with an approved alternative compensation plan under section
122A.415, subdivision 1, paragraph (c), equals $260 times the
number of pupils enrolled in the school on October 1 of the
previous school year, or on October 1 of the current fiscal year
for a charter school in the first year of operation.
new text end

new text begin (b) For fiscal year 2007 and later, the basic alternative
compensation aid for a district with an alternative compensation
plan approved under section 122A.415 equals 73.1 percent of the
alternative compensation revenue according to section 122A.415,
subdivision 1. The basic alternative compensation aid for a
charter school with an alternative compensation plan approved
under section 122A.415 equals $260 times the number of pupils
enrolled in the school on October 1 of the previous fiscal year,
or on October 1 of the current fiscal year for a charter school
in the first year of operation, times the ratio of the sum of
the alternative compensation aid and alternative compensation
levy for all participating school districts to the maximum
alternative compensation revenue for those districts according
to section 122A.415, subdivision 1.
new text end

new text begin (c) Notwithstanding paragraphs (a) and (b) and section
122A.415, subdivision 1, the state total basic alternative
compensation aid entitlement must not exceed $19,329,000 for
fiscal year 2006 and $75,636,000 for fiscal year 2007 and
later. The commissioner must limit the amount of alternative
compensation aid approved under section 122A.415 so as not to
exceed these limits.
new text end

Sec. 32.

Minnesota Statutes 2004, section 126C.10, is
amended by adding a subdivision to read:

new text begin Subd. 35. new text end

new text begin Alternative compensation levy. new text end

new text begin For fiscal year
2007 and later, the alternative compensation levy for a district
receiving basic alternative compensation aid equals the product
of (1) the difference between the district's alternative
compensation revenue and the district's basic alternative
compensation aid times (2) the lesser of one or the ratio of the
district's adjusted net tax capacity per adjusted pupil unit to
$5,913.
new text end

Sec. 33.

Minnesota Statutes 2004, section 126C.10, is
amended by adding a subdivision to read:

new text begin Subd. 36. new text end

new text begin Alternative compensation aid. new text end

new text begin (a) For fiscal
year 2007 and later, a district's alternative compensation
equalization aid equals the district's alternative compensation
revenue minus the district's basic alternative compensation aid
minus the district's alternative compensation levy. If a
district does not levy the entire amount permitted, the
alternative compensation equalization aid must be reduced in
proportion to the actual amount levied.
new text end

new text begin (b) A district's alternative compensation aid equals the
sum of the district's basic alternative compensation aid and the
district's alternative compensation equalization aid.
new text end

Sec. 34.

Minnesota Statutes 2004, section 126C.13,
subdivision 4, is amended to read:

Subd. 4.

General education aid.

(a) deleted text begin For fiscal year
2004, a district's general education aid is the sum of the
following amounts:
deleted text end

deleted text begin (1) general education revenue;
deleted text end

deleted text begin (2) shared time aid according to section 126C.01,
subdivision 7;
deleted text end

deleted text begin (3) referendum aid according to section 126C.17; and
deleted text end

deleted text begin (4) online learning aid according to section 126C.24.
deleted text end

deleted text begin (b) deleted text end For fiscal year deleted text begin 2005 and later deleted text end new text begin 2006 new text end , a district's
general education aid is the sum of the following amounts:

(1) general education revenue, excluding equity revenue,
total operating capital, and transition revenue;

(2) operating capital aid according to section 126C.10,
subdivision 13b;

(3) equity aid according to section 126C.10, subdivision
30;

(4) transition aid according to section 126C.10,
subdivision 33;

(5) shared time aid according to section 126C.01,
subdivision 7;

(6) referendum aid according to section 126C.17; and

(7) online learning aid according to section 126C.24.

new text begin (b) For fiscal year 2007 and later, a district's general
education aid is the sum of the following amounts:
new text end

new text begin (1) general education revenue, excluding equity revenue,
total operating capital revenue, alternative compensation
revenue, and transition revenue;
new text end

new text begin (2) operating capital aid according to section 126C.10,
subdivision 13b;
new text end

new text begin (3) equity aid according to section 126C.10, subdivision
30;
new text end

new text begin (4) alternative compensation aid according to section
126C.10, subdivision 36;
new text end

new text begin (5) transition aid according to section 126C.10,
subdivision 33;
new text end

new text begin (6) shared time aid according to section 126C.01,
subdivision 7;
new text end

new text begin (7) referendum aid according to section 126C.17; and
new text end

new text begin (8) online learning aid according to section 126C.24.
new text end

Sec. 35.

Minnesota Statutes 2004, section 126C.15,
subdivision 1, is amended to read:

Subdivision 1.

Use of the revenue.

new text begin Except for revenue
allocated for prekindergarten programs under subdivision 2,
paragraph (c), new text end the basic skills revenue under section 126C.10,
subdivision 4, must be reserved and used to meet the educational
needs of pupils who enroll under-prepared to learn and whose
progress toward meeting state or local content or performance
standards is below the level that is appropriate for learners of
their age. Any of the following may be provided to meet these
learners' needs:

(1) direct instructional services under the assurance of
mastery program according to section 124D.66;

(2) remedial instruction in reading, language arts,
mathematics, other content areas, or study skills to improve the
achievement level of these learners;

(3) additional teachers and teacher aides to provide more
individualized instruction to these learners through individual
tutoring, lower instructor-to-learner ratios, or team teaching;

(4) a longer school day or week during the regular school
year or through a summer program that may be offered directly by
the site or under a performance-based contract with a
community-based organization;

(5) comprehensive and ongoing staff development consistent
with district and site plans according to section 122A.60, for
teachers, teacher aides, principals, and other personnel to
improve their ability to identify the needs of these learners
and provide appropriate remediation, intervention,
accommodations, or modifications;

(6) instructional materials and technology appropriate for
meeting the individual needs of these learners;

(7) programs to reduce truancy, encourage completion of
high school, enhance self-concept, provide health services,
provide nutrition services, provide a safe and secure learning
environment, provide coordination for pupils receiving services
from other governmental agencies, provide psychological services
to determine the level of social, emotional, cognitive, and
intellectual development, and provide counseling services,
guidance services, and social work services;

(8) bilingual programs, bicultural programs, and programs
for learners of limited English proficiency;

(9) all day kindergarten;

(10) extended school day and extended school year programs;
and

(11) substantial parent involvement in developing and
implementing remedial education or intervention plans for a
learner, including learning contracts between the school, the
learner, and the parent that establish achievement goals and
responsibilities of the learner and the learner's parent or
guardian.

Sec. 36.

Minnesota Statutes 2004, section 126C.15,
subdivision 2, is amended to read:

Subd. 2.

Building allocation.

(a) A district must
allocate its compensatory revenue to each school building in the
district where the children who have generated the revenue are
served new text begin unless the school district has received permission under
section 63 to allocate compensatory revenue according to student
performance measures developed by the school board new text end .

(b) Notwithstanding paragraph (a), a district may allocate
up to five percent of the amount of compensatory revenue that
the district deleted text begin received during the previous fiscal year deleted text end new text begin receives
new text end to school sites according to a plan adopted by the school board.

(c) new text begin Notwithstanding paragraph (a), a district may allocate
up to ten percent of the amount of compensatory revenue the
district receives to support prekindergarten programs under
subdivision 2a.
new text end

new text begin (d) new text end For the purposes of this section and section 126C.05,
subdivision 3, "building" means education site as defined in
section 123B.04, subdivision 1.

deleted text begin (d) deleted text end new text begin (e) new text end If the pupil is served at a site other than one
owned and operated by the district, the revenue shall be paid to
the district and used for services for pupils who generate the
revenue.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2005,
for revenue for fiscal year 2006.
new text end

Sec. 37.

Minnesota Statutes 2004, section 126C.15,
subdivision 3, is amended to read:

Subd. 3.

Recommendation.

A school site decision-making
team, as defined in section 123B.04, subdivision 2, paragraph
(a), or the instruction and curriculum advisory committee under
section 120B.11, if the school has no school site decision team,
shall recommend how the compensatory education revenue will be
used to carry out the purpose of this section. new text begin A school
district that has received permission under section 63 to
allocate compensatory revenue according to school performance
measures shall share its plan for the distribution of
compensatory revenue with the school site decision team.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2005,
for revenue for fiscal year 2006.
new text end

Sec. 38.

Minnesota Statutes 2004, section 126C.17,
subdivision 2, is amended to read:

Subd. 2.

Referendum allowance limit.

(a) deleted text begin Notwithstanding
subdivision 1, for fiscal year 2003, a district's referendum
allowance must not exceed the greater of:
deleted text end

deleted text begin (1) the sum of a district's referendum allowance for fiscal
year 1994 times 1.162 plus its referendum conversion allowance
for fiscal year 2003, minus $415;
deleted text end

deleted text begin (2) 18.2 percent of the formula allowance;
deleted text end

deleted text begin (3) for a newly reorganized district created on July 1,
2002, the referendum revenue authority for each reorganizing
district in the year preceding reorganization divided by its
resident marginal cost pupil units for the year preceding
reorganization, minus $415; or
deleted text end

deleted text begin (4) for a newly reorganized district created after July 1,
2002, the referendum revenue authority for each reorganizing
district in the year preceding reorganization divided by its
resident marginal cost pupil units for the year preceding
reorganization.
deleted text end

deleted text begin (b) deleted text end Notwithstanding subdivision 1, for fiscal year deleted text begin 2004
deleted text end new text begin 2007 new text end and later, a district's referendum allowance must not
exceed the greater of:

(1) the sum of: (i) a district's referendum allowance for
fiscal year 1994 times 1.177 times the annual inflationary
increase as calculated under paragraph deleted text begin (c) deleted text end new text begin (b) new text end plus (ii) its
referendum conversion allowance for fiscal year 2003, minus
(iii) deleted text begin $415 deleted text end new text begin $115 new text end ;

(2) the greater of (i) deleted text begin 18.6 deleted text end new text begin 28 new text end percent of the formula
allowance or (ii) deleted text begin $855.79 deleted text end new text begin $1,368 new text end times the annual inflationary
increase as calculated under paragraph (c); or

(3) for a newly reorganized district created after July 1,
deleted text begin 2002 deleted text end new text begin 2006 new text end , the referendum revenue authority for each
reorganizing district in the year preceding reorganization
divided by its resident marginal cost pupil units for the year
preceding reorganization.

deleted text begin (c) deleted text end new text begin (b) new text end For purposes of this subdivision, for fiscal year
2005 and later, "inflationary increase" means one plus the
percentage change in the Consumer Price Index for urban
consumers, as prepared by the United States Bureau of Labor
Standards, for the current fiscal year to fiscal year 2004. For
fiscal years 2009 and later, for purposes of paragraph deleted text begin (b) deleted text end new text begin (a) new text end ,
clause (1), the inflationary increase equals the inflationary
increase for fiscal year 2008 plus one-fourth of the percentage
increase in the formula allowance for that year compared with
the formula allowance for fiscal year 2008.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for revenue for
fiscal year 2007.
new text end

Sec. 39.

Minnesota Statutes 2004, section 126C.17,
subdivision 5, is amended to read:

Subd. 5.

Referendum equalization revenue.

(a) For fiscal
year 2003 and later, a district's referendum equalization
revenue equals the sum of the first tier referendum equalization
revenue and the second tier referendum equalization revenue.

(b) A district's first tier referendum equalization revenue
equals the district's first tier referendum equalization
allowance times the district's resident marginal cost pupil
units for that year.

(c) deleted text begin For fiscal years 2003 and 2004, a district's first tier
referendum equalization allowance equals the lesser of the
district's referendum allowance under subdivision 1 or $126.
For fiscal year 2005, a district's first tier referendum
equalization allowance equals the lesser of the district's
referendum allowance under subdivision 1 or $405. deleted text end For fiscal
year 2006 deleted text begin and later deleted text end , a district's first tier referendum
equalization allowance equals the lesser of the district's
referendum allowance under subdivision 1 or $500. new text begin For fiscal
year 2007, a district's first tier referendum equalization
allowance equals the lesser of the district's referendum
allowance under subdivision 1 or $600.
new text end

new text begin For fiscal year 2008, a district's first tier referendum
equalization allowance equals the lesser of the district's
referendum allowance under subdivision 1 or $700. For fiscal
years 2009 and later, a district's first tier referendum
equalization allowance equals the lesser of the district's
referendum allowance under subdivision 1 or $800.
new text end

(d) A district's second tier referendum equalization
revenue equals the district's second tier referendum
equalization allowance times the district's resident marginal
cost pupil units for that year.

(e) new text begin For fiscal year 2006, new text end a district's second tier
referendum equalization allowance equals the lesser of the
district's referendum allowance under subdivision 1 or 18.6
percent of the formula allowance, minus the district's first
tier referendum equalization allowance. new text begin For fiscal year 2007
and later, a district's second tier referendum equalization
allowance equals the lesser of the district's referendum
allowance under subdivision 1 or 28 percent of the formula
allowance, minus the district's first tier referendum
equalization allowance.
new text end

(f) Notwithstanding paragraph (e), the second tier
referendum allowance for a district qualifying for secondary
sparsity revenue under section 126C.10, subdivision 7, or
elementary sparsity revenue under section 126C.10, subdivision
8, equals the district's referendum allowance under subdivision
1 minus the district's first tier referendum equalization
allowance.

Sec. 40.

Minnesota Statutes 2004, section 126C.17,
subdivision 7, is amended to read:

Subd. 7.

Referendum equalization aid.

(a) A district's
referendum equalization aid equals the difference between its
referendum equalization revenue and levy.

(b) If a district's actual levy for first or second tier
referendum equalization revenue is less than its maximum levy
limit for that tier, aid shall be proportionately reduced.

(c) Notwithstanding paragraph (a), the referendum
equalization aid for a district, where the referendum
equalization aid under paragraph (a) exceeds 90 percent of the
referendum revenue, must not exceed deleted text begin 18.6 deleted text end new text begin 28 new text end percent of the
formula allowance times the district's resident marginal cost
pupil units. A district's referendum levy is increased by the
amount of any reduction in referendum aid under this paragraph.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for revenue for
fiscal year 2007.
new text end

Sec. 41.

Minnesota Statutes 2004, section 126C.17,
subdivision 9, is amended to read:

Subd. 9.

Referendum revenue.

(a) The revenue authorized
by section 126C.10, subdivision 1, may be increased in the
amount approved by the voters of the district at a referendum
called for the purpose. The referendum may be called by the
board or shall be called by the board upon written petition of
qualified voters of the district. The referendum must be
conducted one or two calendar years before the increased levy
authority, if approved, first becomes payable. Only one
election to approve an increase may be held in a calendar year.
Unless the referendum is conducted by mail under paragraph (g),
the referendum must be held on the first Tuesday after the first
Monday in November. The ballot must state the maximum amount of
the increased revenue per resident marginal cost pupil unit deleted text begin , the
estimated referendum tax rate as a percentage of referendum
market value in the first year it is to be levied, and that the
revenue must be used to finance school operations deleted text end . The ballot
may state a schedule, determined by the board, of increased
revenue per resident marginal cost pupil unit that differs from
year to year over the number of years for which the increased
revenue is authorized. deleted text begin If the ballot contains a schedule
showing different amounts, it must also indicate the estimated
referendum tax rate as a percent of referendum market value for
the amount specified for the first year and for the maximum
amount specified in the schedule. deleted text end The ballot may state that
existing referendum levy authority is expiring. In this case,
the ballot may also compare the proposed levy authority to the
existing expiring levy authority, and express the proposed
increase as the amount, if any, over the expiring referendum
levy authority. The ballot must designate the specific number
of years, not to exceed ten, for which the referendum
authorization applies. new text begin The ballot, including a ballot on the
question to revoke or reduce the increased revenue amount under
paragraph (c), must abbreviate the term "per resident marginal
cost pupil unit" as "per pupil." new text end The notice required under
section 275.60 may be modified to read, in cases of renewing
existing levies:

"BY VOTING "YES" ON THIS BALLOT QUESTION, YOU MAY BE VOTING
FOR A PROPERTY TAX INCREASE."

The ballot may contain a textual portion with the
information required in this subdivision and a question stating
substantially the following:

"Shall the increase in the revenue proposed by (petition
to) the board of ........., School District No. .., be approved?"

If approved, an amount equal to the approved revenue per
resident marginal cost pupil unit times the resident marginal
cost pupil units for the school year beginning in the year after
the levy is certified shall be authorized for certification for
the number of years approved, if applicable, or until revoked or
reduced by the voters of the district at a subsequent referendum.

(b) The board must prepare and deliver by first class mail
at least 15 days but no more than 30 days before the day of the
referendum to each taxpayer a notice of the referendum and the
proposed revenue increase. The board need not mail more than
one notice to any taxpayer. For the purpose of giving mailed
notice under this subdivision, owners must be those shown to be
owners on the records of the county auditor or, in any county
where tax statements are mailed by the county treasurer, on the
records of the county treasurer. Every property owner whose
name does not appear on the records of the county auditor or the
county treasurer is deemed to have waived this mailed notice
unless the owner has requested in writing that the county
auditor or county treasurer, as the case may be, include the
name on the records for this purpose. The notice must project
the anticipated amount of tax increase in annual dollars deleted text begin and
annual percentage deleted text end for typical residential homesteads,
agricultural homesteads, apartments, and commercial-industrial
property within the school district.

The notice for a referendum may state that an existing
referendum levy is expiring and project the anticipated amount
of increase over the existing referendum levy in the first year,
if any, in annual dollars deleted text begin and annual percentage deleted text end for typical
residential homesteads, agricultural homesteads, apartments, and
commercial-industrial property within the district.

The notice must include the following statement: "Passage
of this referendum will result in an increase in your property
taxes." However, in cases of renewing existing levies, the
notice may include the following statement: "Passage of this
referendum may result in an increase in your property taxes."

(c) A referendum on the question of revoking or reducing
the increased revenue amount authorized pursuant to paragraph
(a) may be called by the board and shall be called by the board
upon the written petition of qualified voters of the district.
A referendum to revoke or reduce the revenue amount must state
the amount per resident marginal cost pupil unit by which the
authority is to be reduced. Revenue authority approved by the
voters of the district pursuant to paragraph (a) must be
available to the school district at least once before it is
subject to a referendum on its revocation or reduction for
subsequent years. Only one revocation or reduction referendum
may be held to revoke or reduce referendum revenue for any
specific year and for years thereafter.

(d) A petition authorized by paragraph (a) or (c) is
effective if signed by a number of qualified voters in excess of
15 percent of the registered voters of the district on the day
the petition is filed with the board. A referendum invoked by
petition must be held on the date specified in paragraph (a).

(e) The approval of 50 percent plus one of those voting on
the question is required to pass a referendum authorized by this
subdivision.

(f) At least 15 days before the day of the referendum, the
district must submit a copy of the notice required under
paragraph (b) to the commissioner and to the county auditor of
each county in which the district is located. Within 15 days
after the results of the referendum have been certified by the
board, or in the case of a recount, the certification of the
results of the recount by the canvassing board, the district
must notify the commissioner of the results of the referendum.

Sec. 42.

Minnesota Statutes 2004, section 126C.17,
subdivision 13, is amended to read:

Subd. 13.

Referendum conversion allowance.

deleted text begin (a) deleted text end A school
district that received supplemental or transition revenue in
fiscal year 2002 may convert its supplemental revenue conversion
allowance and transition revenue conversion allowance to
additional referendum allowance under subdivision 1 for fiscal
year 2003 and thereafter. A majority of the school board must
approve the conversion at a public meeting before November 1,
2001. For a district with other referendum authority, the
referendum conversion allowance approved by the board continues
until the portion of the district's other referendum authority
with the earliest expiration date after June 30, 2006, expires.
For a district with no other referendum authority, the
referendum conversion allowance approved by the board continues
until June 30, 2012.

deleted text begin (b) A school district that received transition revenue in
fiscal year 2004 may convert all or part of its transition
revenue to referendum revenue with voter approval in a
referendum called for the purpose. The referendum must be held
in accordance with subdivision 9, except that the ballot may
state that existing transition revenue authority is being
canceled or is expiring. In this case, the ballot shall compare
the proposed referendum allowance to the canceled or expiring
transition revenue allowance. For purposes of this comparison,
the canceled or expiring transition revenue allowance per
adjusted marginal cost pupil unit shall be converted to an
allowance per resident marginal cost pupil unit based on the
district's ratio of adjusted marginal cost pupil units to
resident marginal cost pupil units for the preceding fiscal
year. The referendum must be held on the first Tuesday after
the first Monday in November. The notice required under section
275.60 may be modified to read: "BY VOTING 'YES' ON THIS BALLOT
QUESTION, YOU MAY BE VOTING FOR A PROPERTY TAX INCREASE."
Elections under this paragraph must be held in 2007 or earlier.
deleted text end

Sec. 43.

Minnesota Statutes 2004, section 126C.21,
subdivision 4, is amended to read:

Subd. 4.

Taconite deductions.

deleted text begin (1) Notwithstanding any
provisions of any other law to the contrary, the adjusted net
tax capacity used in calculating general education aid may
include only that property that is currently taxable in the
district.
deleted text end

deleted text begin (2) deleted text end For districts that deleted text begin received payments deleted text end new text begin have revenue new text end under
sections 298.018; 298.225; new text begin 229.24 to new text end 298.28 new text begin , excluding 298.26
and 298.28, subdivision 4, paragraph (d) new text end ; 298.34 to 298.39;
298.391 to 298.396; deleted text begin and deleted text end 298.405 new text begin ; and 477A.15 new text end , new text begin or new text end any law
imposing a tax upon severed mineral values; deleted text begin or recognized
revenue under section 477A.15; deleted text end new text begin , new text end the general education aid must
be reduced in the final adjustment payment by new text begin (1) new text end the deleted text begin difference
between the dollar deleted text end amount of the deleted text begin payments received deleted text end new text begin revenue
recognized new text end pursuant to those sections deleted text begin , or revenue recognized
under section 477A.15 in deleted text end new text begin for new text end the fiscal year to which the final
adjustment is attributable deleted text begin and deleted text end new text begin , less (2) new text end the amount that was
calculated, pursuant to section 126C.48, subdivision 8, as a
reduction of the levy attributable to the fiscal year to which
the final adjustment is attributable. If the final adjustment
of a district's general education aid for a fiscal year is a
negative amount because of this deleted text begin clause deleted text end new text begin subdivision new text end , the next
fiscal year's general education aid to that district must be
reduced by this negative amount in the following manner: there
must be withheld from each scheduled general education aid
payment due the district in such fiscal year, 15 percent of the
total negative amount, until the total negative amount has been
withheld. The amount reduced from general education aid
pursuant to this deleted text begin clause deleted text end new text begin subdivision new text end must deleted text begin be recognized as deleted text end new text begin reduce
new text end revenue in the fiscal year to which the final adjustment payment
is attributable.

[EFFECTIVE DATE.] new text begin This section is effective for revenue for
fiscal year 2006.
new text end

Sec. 44.

Minnesota Statutes 2004, section 126C.40,
subdivision 1, is amended to read:

Subdivision 1.

To lease building or land.

(a) When an
independent or a special school district or a group of
independent or special school districts finds it economically
advantageous to rent or lease a building or land for any
instructional purposes deleted text begin or deleted text end new text begin , new text end for school storage or furniture
repair, new text begin or for administrative space according to paragraph (j),
new text end and it determines that the operating capital revenue authorized
under section 126C.10, subdivision 13, is insufficient for this
purpose, it may apply to the commissioner for permission to make
an additional capital expenditure levy for this purpose. An
application for permission to levy under this subdivision must
contain financial justification for the proposed levy, the terms
and conditions of the proposed lease, and a description of the
space to be leased and its proposed use.

(b) The criteria for approval of applications to levy under
this subdivision must include: the reasonableness of the price,
the appropriateness of the space to the proposed activity, the
feasibility of transporting pupils to the leased building or
land, conformity of the lease to the laws and rules of the state
of Minnesota, and the appropriateness of the proposed lease to
the space needs and the financial condition of the district.
The commissioner must not authorize a levy under this
subdivision in an amount greater than deleted text begin 90 percent of deleted text end the cost to
the district of renting or leasing a building or land for
approved purposes. The proceeds of this levy must not be used
for custodial or other maintenance services. A district may not
levy under this subdivision for the purpose of leasing or
renting a district-owned building or site to itself.

(c) For agreements finalized after July 1, 1997, a district
may not levy under this subdivision for the purpose of leasing:
(1) a newly constructed building used primarily for regular
kindergarten, elementary, or secondary instruction; or (2) a
newly constructed building addition or additions used primarily
for regular kindergarten, elementary, or secondary instruction
that contains more than 20 percent of the square footage of the
previously existing building.

(d) Notwithstanding paragraph (b), a district may levy
under this subdivision for the purpose of leasing or renting a
district-owned building or site to itself only if the amount is
needed by the district to make payments required by a lease
purchase agreement, installment purchase agreement, or other
deferred payments agreement authorized by law, and the levy
meets the requirements of paragraph (c). A levy authorized for
a district by the commissioner under this paragraph may be in
the amount needed by the district to make payments required by a
lease purchase agreement, installment purchase agreement, or
other deferred payments agreement authorized by law, provided
that any agreement include a provision giving the school
districts the right to terminate the agreement annually without
penalty.

(e) The total levy under this subdivision for a district
for any year must not exceed deleted text begin $90 deleted text end new text begin $100 new text end times the resident pupil
units for the fiscal year to which the levy is attributable.

(f) For agreements for which a review and comment have been
submitted to the Department of Education after April 1, 1998,
the term "instructional purpose" as used in this subdivision
excludes expenditures on stadiums.

(g) The commissioner of education may authorize a school
district to exceed the limit in paragraph (e) if the school
district petitions the commissioner for approval. The
commissioner shall grant approval to a school district to exceed
the limit in paragraph (e) for not more than five years if the
district meets the following criteria:

(1) the school district has been experiencing pupil
enrollment growth in the preceding five years;

(2) the purpose of the increased levy is in the long-term
public interest;

(3) the purpose of the increased levy promotes colocation
of government services; and

(4) the purpose of the increased levy is in the long-term
interest of the district by avoiding over construction of school
facilities.

(h) A school district that is a member of an intermediate
school district may include in its authority under this section
deleted text begin 90 percent of deleted text end the costs associated with leases of administrative
and classroom space for intermediate school district programs.
This authority must not exceed deleted text begin $22.50 deleted text end new text begin $25 new text end times the adjusted
marginal cost pupil units of the member districts. This
authority is in addition to any other authority authorized under
this section.

(i) In addition to the allowable capital levies in
paragraph (a), a district that is a member of the "Technology
and Information Education Systems" data processing joint board,
that finds it economically advantageous to enter into a lease
purchase agreement for a building for a group of school
districts or special school districts for staff development
purposes, may levy for its portion of lease costs attributed to
the district within the total levy limit in paragraph (e).

new text begin (j) A school district may lease administrative space under
this section if the district can demonstrate to the
commissioner's satisfaction that the administrative space is
less expensive than instructional space that the district would
otherwise lease.
new text end

Sec. 45.

Minnesota Statutes 2004, section 126C.43,
subdivision 2, is amended to read:

Subd. 2.

Payment to unemployment insurance program trust
fund by state and political subdivisions.

A district may
levy deleted text begin 90 percent of deleted text end the amount deleted text begin exceeding $10 times the district's
adjusted marginal cost pupil units for the fiscal year ending in
the year before the year the levy is certified deleted text end necessary (i) to
pay the district's obligations under section 268.052,
subdivision 1, and (ii) to pay for job placement services
offered to employees who may become eligible for benefits
pursuant to section 268.085 for the fiscal year the levy is
certified.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxes
payable in 2006.
new text end

Sec. 46.

Minnesota Statutes 2004, section 126C.43,
subdivision 3, is amended to read:

Subd. 3.

Tax levy for judgment.

A district may levy deleted text begin 90
percent of deleted text end the amount deleted text begin exceeding $10 times the district's
adjusted marginal cost pupil units for the fiscal year ending in
the year before the year the levy is certified deleted text end necessary to pay
judgments against the district under section 123B.25 that became
final after the date the district certified its proposed levy in
the previous year. With the approval of the commissioner, a
district may spread this levy over a period not to exceed three
years. Upon approval through the adoption of a resolution by
each of an intermediate district's member school district
boards, a member school district may include its proportionate
share of the costs of a judgment against an intermediate school
district that became final under section 123B.25 after the date
that the earliest member school district certified its proposed
levy in the previous year. With the approval of the
commissioner, an intermediate school district member school
district may spread this levy over a period not to exceed three
years.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxes
payable in 2006.
new text end

Sec. 47.

Minnesota Statutes 2004, section 126C.44, is
amended to read:

126C.44 SAFE SCHOOLS LEVY.

Each district may make a levy on all taxable property
located within the district for the purposes specified in this
section. The maximum amount which may be levied for all costs
under this section shall be equal to deleted text begin $27 deleted text end new text begin $30 new text end multiplied by the
district's adjusted marginal cost pupil units for the school
year. The proceeds of the levy must be used for directly
funding the following purposes or for reimbursing the cities and
counties who contract with the district for the following
purposes: (1) to pay the costs incurred for the salaries,
benefits, and transportation costs of peace officers and
sheriffs for liaison in services in the district's schools; (2)
to pay the costs for a drug abuse prevention program as defined
in section 609.101, subdivision 3, paragraph (e), in the
elementary schools; (3) to pay the costs for a gang resistance
education training curriculum in the district's schools; (4) to
pay the costs for security in the district's schools and on
school property; deleted text begin or deleted text end (5) new text begin to pay the costs incurred for the
salaries and benefits of school counselors; or (6) new text end to pay the
costs for other crime prevention, drug abuse, student and staff
safety, and violence prevention measures taken by the school
district. The district must initially attempt to contract for
services to be provided by peace officers or sheriffs with the
police department of each city or the sheriff's department of
the county within the district containing the school receiving
the services. If a local police department or a county
sheriff's department does not wish to provide the necessary
services, the district may contract for these services with any
other police or sheriff's department located entirely or
partially within the school district's boundaries. The levy
authorized under this section is not included in determining the
school district's levy limitations.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxes
payable in 2006.
new text end

Sec. 48.

Minnesota Statutes 2004, section 126C.48, is
amended by adding a subdivision to read:

new text begin Subd. 9. new text end

new text begin Reverse referendum. new text end

new text begin (a) At the time a district
certifies its proposed levy to the county auditor according to
section 275.065, subdivision 1, the school board must certify
the amount of deferred maintenance revenue per pupil unit that
the board intends to raise. If the board certifies an amount
for fiscal year 2007, the amount certified is subject to reverse
referendum under paragraphs (b) and (c). If the amount
certified for fiscal year 2008 and later exceeds the amount
certified for the previous fiscal year, excluding any amount
disallowed by reverse referendum, the increase over the amount
certified for the previous fiscal year excluding any amount
disallowed by reverse referendum, is subject to reverse
referendum under paragraphs (b) and (c).
new text end

new text begin (b) If a district certifies revenue under paragraph (a)
that is subject to reverse referendum, the district must publish
notice of the intended increase subject to reverse referendum by
October 10. The notice must include the amount of the revenue
increase per adjusted pupil unit and the property tax increase
in annual dollars for typical residential homesteads,
agricultural homesteads, apartments, and commercial-industrial
property within the district.
new text end

new text begin (c) Revenue tentatively authorized by the board under this
subdivision becomes authorized unless a petition signed by more
than 15 percent of the registered voters of the district is
filed with the school board within 30 days of the publication of
notice. The percentage is to be determined with reference to
the number of registered voters in the district on the last day
before the petition is filed with the board. The petition must
call for a referendum on the question of whether to increase the
revenue. The approval of 50 percent plus one of those voting on
the question is required to pass a referendum authorized by this
section. The referendum must be held on the last Tuesday in
January.
new text end

new text begin (d) The ballot must state that the board proposes to
increase its deferred maintenance revenue, the maximum amount of
the increased revenue per pupil, and the estimated tax rate as a
percentage of net tax capacity in the first year it is to be
levied. The ballot shall contain a textual portion with the
information required in this paragraph and a question stating
substantially the following: "Shall the increase in revenue
proposed by the Board of ......., Independent School District
No. ......., be approved?"
new text end

new text begin (e) The district's final and deferred maintenance revenue
per pupil unit for a fiscal year must not exceed the sum of the
amounts certified by the district according to paragraph (a). A
district may elect to reduce the amount certified according to
paragraph (a) at the time of final levy certification. If the
criteria for a reverse referendum have been met, but the amount
certified is reduced to a level that would not require a reverse
referendum, the reverse referendum is canceled.
new text end

Sec. 49.

Minnesota Statutes 2004, section 126C.48,
subdivision 2, is amended to read:

Subd. 2.

Notice to commissioner; forms.

By October 7 of
each year each district must notify the commissioner of the
proposed levies in compliance with the levy limitations of this
chapter and chapters 120B, 122A, 123A, 123B, 124D, 125A, 127A,
and 136D. By January deleted text begin 15 deleted text end new text begin 7 new text end of each year each district must
notify the commissioner of the final levies certified. The
commissioner shall prescribe the form of these notifications and
may request any additional information necessary to compute
certified levy amounts.

Sec. 50.

Minnesota Statutes 2004, section 126C.48,
subdivision 8, is amended to read:

Subd. 8.

Taconite payment and other reductions.

(1)
Reductions in levies pursuant to subdivision 1 must be made
prior to the reductions in clause (2).

(2) Notwithstanding any other law to the contrary,
districts deleted text begin which received payments deleted text end new text begin that have revenue new text end pursuant to
sections 298.018; 298.225; new text begin 298.24 to new text end 298.28, except an amount
distributed under deleted text begin section deleted text end new text begin sections 298.26; new text end 298.28, subdivision
4, deleted text begin paragraph deleted text end new text begin paragraphs new text end (c), clause (ii) new text begin , and (d) new text end ; 298.34 to
298.39; 298.391 to 298.396; 298.405; new text begin 477A.15; new text end and any law
imposing a tax upon severed mineral values deleted text begin ; or recognized
revenue under section 477A.15 must not include a portion of
these aids in their permissible levies pursuant to those
sections, but instead deleted text end must reduce the deleted text begin permissible deleted text end levies
authorized by this chapter and chapters 120B, 122A, 123A, 123B,
124A, 124D, 125A, and 127A by deleted text begin the greater of the following: deleted text end new text begin 95
percent of the previous year's revenue specified under this
clause.
new text end

deleted text begin (a) an amount equal to 50 percent of the total dollar
amount of the payments received pursuant to those sections or
revenue recognized under section 477A.15 in the previous fiscal
year; or
deleted text end

deleted text begin (b) an amount equal to the total dollar amount of the
payments received pursuant to those sections or revenue
recognized under section 477A.15 in the previous fiscal year
less the product of the same dollar amount of payments or
revenue times five percent.
deleted text end

deleted text begin For levy year 2002 only, 77 percent of the amounts
distributed under section 298.225 and 298.28, and 100 percent of
the amounts distributed under sections 298.018; 298.34 to
298.39; 298.391 to 298.396; 298.405; and any law imposing a tax
upon severed mineral values, or recognized revenue under section
477A.15, shall be used for purposes of the calculations under
this paragraph. For levy year 2003 only, the levy reductions
under this subdivision must be calculated as if section 298.28,
subdivision 4, paragraph (f), did not apply for the 2003
distribution.
deleted text end

(3) The amount of any voter approved referendum, facilities
down payment, and debt levies shall not be reduced by more than
50 percent under this subdivision. In administering this
paragraph, the commissioner shall first reduce the nonvoter
approved levies of a district; then, if any payments, severed
mineral value tax revenue or recognized revenue under paragraph
(2) remains, the commissioner shall reduce any voter approved
referendum levies authorized under section 126C.17; then, if any
payments, severed mineral value tax revenue or recognized
revenue under paragraph (2) remains, the commissioner shall
reduce any voter approved facilities down payment levies
authorized under section 123B.63 and then, if any payments,
severed mineral value tax revenue or recognized revenue under
paragraph (2) remains, the commissioner shall reduce any voter
approved debt levies.

(4) Before computing the reduction pursuant to this
subdivision of the health and safety levy authorized by sections
123B.57 and 126C.40, subdivision 5, the commissioner shall
ascertain from each affected school district the amount it
proposes to levy under each section or subdivision. The
reduction shall be computed on the basis of the amount so
ascertained.

(5) To the extent the levy reduction calculated under
paragraph (2) exceeds the limitation in paragraph (3), an amount
equal to the excess must be distributed from the school
district's distribution under sections 298.225, 298.28, and
477A.15 in the following year to the cities and townships within
the school district in the proportion that their taxable net tax
capacity within the school district bears to the taxable net tax
capacity of the school district for property taxes payable in
the year prior to distribution. No city or township shall
receive a distribution greater than its levy for taxes payable
in the year prior to distribution. The commissioner of revenue
shall certify the distributions of cities and towns under this
paragraph to the county auditor by September 30 of the year
preceding distribution. The county auditor shall reduce the
proposed and final levies of cities and towns receiving
distributions by the amount of their distribution.
Distributions to the cities and towns shall be made at the times
provided under section 298.27.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for revenue for
fiscal year 2006.
new text end

Sec. 51.

Minnesota Statutes 2004, section 127A.45,
subdivision 11, is amended to read:

Subd. 11.

Payment percentage for reimbursement aids.

One
hundred percent of the aid for the previous fiscal year must be
paid in the current year for the following aids:
new text begin telecommunications/Internet access equity and according to
section 125B.26, new text end special education special pupil aid according
to section 125A.75, subdivision 3, aid for litigation costs
according to section 125A.75, subdivision 8, aid for
court-placed special education expenses according to section
125A.79, subdivision 4, and aid for special education
out-of-state tuition according to section 125A.79, subdivision
8 new text begin , and shared time aid according to section 126C.01, subdivision
7 new text end .

Sec. 52.

Minnesota Statutes 2004, section 127A.49,
subdivision 2, is amended to read:

Subd. 2.

Abatements.

Whenever by virtue of chapter 278,
sections 270.07, 375.192, or otherwise, the net tax capacity of
any district for any taxable year is changed after the taxes for
that year have been spread by the county auditor and the local
tax rate as determined by the county auditor based upon the
original net tax capacity is applied upon the changed net tax
capacities, the county auditor shall, prior to February 1 of
each year, certify to the commissioner of education the amount
of any resulting net revenue loss that accrued to the district
during the preceding year. Each year, the commissioner shall
pay an abatement adjustment to the district in an amount
calculated according to the provisions of this subdivision.
This amount shall be deducted from the amount of the levy
authorized by section 126C.46. The amount of the abatement
adjustment must be the product of:

(1) the net revenue loss as certified by the county
auditor, times

(2) the ratio of:

(i) the sum of the amounts of the district's certified levy
in the new text begin third new text end preceding year according to the following:

(A) section 123B.57, if the district received health and
safety aid according to that section for the second preceding
year;

(B) section 124D.20, if the district received aid for
community education programs according to that section for the
second preceding year;

(C) section 124D.135, subdivision 3, if the district
received early childhood family education aid according to
section 124D.135 for the second preceding year; and

(D) section 126C.17, subdivision 6, if the district
received referendum equalization aid according to that section
for the second preceding year; to

(ii) the total amount of the district's certified levy in
the new text begin third new text end preceding December, plus or minus auditor's
adjustments.

Sec. 53.

Minnesota Statutes 2004, section 127A.49,
subdivision 3, is amended to read:

Subd. 3.

Excess tax increment.

(a) If a return of excess
tax increment is made to a district pursuant to deleted text begin section deleted text end new text begin sections
new text end 469.176, subdivision 2, new text begin and 469.177, subdivision 9, new text end or upon
decertification of a tax increment district, the school
district's aid and levy limitations must be adjusted for the
fiscal year in which the excess tax increment is paid under the
provisions of this subdivision.

(b) An amount must be subtracted from the district's aid
for the current fiscal year equal to the product of:

(1) the amount of the payment of excess tax increment to
the district, times

(2) the ratio of:

(i) the sum of the amounts of the district's certified levy
for the fiscal year in which the excess tax increment is paid
according to the following:

(A) section 123B.57, if the district received health and
safety aid according to that section for the second preceding
year;

(B) section 124D.20, if the district received aid for
community education programs according to that section for the
second preceding year;

(C) section 124D.135, subdivision 3, if the district
received early childhood family education aid according to
section 124D.135 for the second preceding year; and

(D) section 126C.17, subdivision 6, if the district
received referendum equalization aid according to that section
for the second preceding year; to

(ii) the total amount of the district's certified levy for
the fiscal year, plus or minus auditor's adjustments.

(c) An amount must be subtracted from the school district's
levy limitation for the next levy certified equal to the
difference between:

(1) the amount of the distribution of excess increment; and

(2) the amount subtracted from aid pursuant to clause (a).

If the aid and levy reductions required by this subdivision
cannot be made to the aid for the fiscal year specified or to
the levy specified, the reductions must be made from aid for
subsequent fiscal years, and from subsequent levies. The school
district must use the payment of excess tax increment to replace
the aid and levy revenue reduced under this subdivision.

(d) This subdivision applies only to the total amount of
excess increments received by a district for a calendar year
that exceeds $25,000.

Sec. 54.

Minnesota Statutes 2004, section 127A.50,
subdivision 5, is amended to read:

Subd. 5.

Adjustment new text begin phase-out and new text end termination.

All
adjustments under this section terminate on June 30, 2020. new text begin For
fiscal year 2007 and later, the adjustment under this section
equals 75 percent of the adjustment for fiscal year 2006.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for revenue for
fiscal year 2007.
new text end

Sec. 55.

Minnesota Statutes 2004, section 275.14, is
amended to read:

275.14 CENSUS.

deleted text begin For the purposes of sections 275.124 to 275.16, the
population of a city shall be that established by the last
federal census, by a special census taken by the United States
Bureau of the Census, by an estimate made by the Metropolitan
Council, or by the state demographer made according to section
4A.02, whichever has the latest stated date of count or
estimate, before July 2 of the current levy year. deleted text end The
population of a school district must be as certified by the
Department of Education from the most recent federal census. In
any year in which no federal census is taken pursuant to law in
any school district affected by sections deleted text begin 275.124 to
275.16 deleted text end new text begin 124D.20 and 124D.531 new text end a population estimate may be made
and submitted to the state demographer for approval as
hereinafter provided. The school board of a school district, in
case it desires a population estimate, shall pass a resolution
by July 1 containing a current estimate of the population of the
school district and shall submit the resolution to the state
demographer. The resolution shall describe the criteria on
which the estimate is based and shall be in a form and
accompanied by the data prescribed by the state demographer.
The state demographer shall determine whether or not the
criteria and process described in the resolution provide a
reasonable basis for the population estimate and shall inform
the school district of that determination within 30 days of
receipt of the resolution. If the state demographer determines
that the criteria and process described in the resolution do not
provide a reasonable basis for the population estimate, the
resolution shall be of no effect. If the state demographer
determines that the criteria and process do provide a reasonable
basis for the population estimate, the estimate shall be treated
as the population of the school district for the purposes of
sections deleted text begin 275.124 to 275.16 deleted text end new text begin 124D.20 and 124D.531 new text end until the
population of the school district has been established by the
next federal census or until a more current population estimate
is prepared and approved as provided herein, whichever occurs
first. The state demographer shall establish guidelines for
acceptable population estimation criteria and processes. The
state demographer shall issue advisory opinions upon request in
writing to cities or school districts as to proposed criteria
and processes prior to their implementation in an estimation.
The advisory opinion shall be final and binding upon the
demographer unless the demographer can show cause why it should
not be final and binding.

In the event that a census tract employed in taking a
federal or local census overlaps two or more school districts,
the county auditor shall, on the basis of the best information
available, allocate the population of said census tract to the
school districts involved.

deleted text begin The term "council," as used in sections 275.124 to 275.16,
means any board or body, whether composed of one or more
branches, authorized to make ordinances for the government of a
city within this state.
deleted text end

Sec. 56.

Minnesota Statutes 2004, section 275.16, is
amended to read:

275.16 COUNTY AUDITOR TO FIX AMOUNT OF LEVY.

If any such municipality shall return to the county auditor
a levy greater than permitted by chapters 123A, 123B, new text begin 124D,
new text end 126C, new text begin and new text end 136C, deleted text begin and 136D, deleted text end sections 275.124 to 275.16, and 275.70
to 275.74, such county auditor shall extend only such amount of
taxes as the limitations herein prescribed will permit;
provided, if such levy shall include any levy for the payment of
bonded indebtedness or judgments, such levies for bonded
indebtedness or judgments shall be extended in full, and the
remainder of the levies shall be reduced so that the total
thereof, including levies for bonds and judgments, shall not
exceed such amount as the limitations herein prescribed will
permit.

Sec. 57.

Minnesota Statutes 2004, section 469.177,
subdivision 9, is amended to read:

Subd. 9.

Distributions of excess taxes on captured net
tax capacity.

(a) If the amount of tax paid on captured net tax
capacity exceeds the amount of tax increment, the county auditor
shall distribute the excess to the municipality, county, and
school district as follows: each governmental unit's share of
the excess equals

(1) the total amount of the excess for the tax increment
financing district, multiplied by

(2) a fraction, the numerator of which is the current local
tax rate of the governmental unit less the governmental unit's
local tax rate for the year the original local tax rate for the
district was certified (in no case may this amount be less than
zero) and the denominator of which is the sum of the numerators
for the municipality, county, and school district.

If the entire increase in the local tax rate is attributable to
a taxing district, other than the municipality, county, or
school district, then the excess must be distributed to the
municipality, county, and school district in proportion to their
respective local tax rates.

(b) The amounts distributed shall be deducted in computing
the levy limits of the taxing district for the succeeding
taxable year. deleted text begin In the case of a school district, only the
proportion of the excess taxes attributable to unequalized
levies that are subject to a fixed dollar amount levy limit
shall be deducted from the levy limit.
deleted text end

(c) In the case of distributions to a school district deleted text begin that
are attributable to state equalized levies deleted text end , the county auditor
shall report amounts distributed to the commissioner of
education in the same manner as provided for excess increments
under section 469.176, subdivision 2, and the distribution shall
be deducted from the school district's state aid payments new text begin and
levy limitation according to section 127A.49, subdivision 3 new text end .

Sec. 58.

Laws 2003, First Special Session chapter 9,
article 1, section 51, is amended to read:

Sec. 51. new text begin STAFF DEVELOPMENT RESERVED REVENUE new text end deleted text begin ; FISCAL YEARS
2004 AND 2005 deleted text end new text begin .
new text end

new text begin Subdivision 1. new text end

new text begin Fiscal years 2004 and 2005.
new text end

Notwithstanding Minnesota Statutes, section 122A.61, subdivision
1, for fiscal years 2004 and 2005 only, a school district must
reserve an amount equal to at least zero percent of the basic
revenue under Minnesota Statutes, section 126C.10, subdivision
2. A district may waive this requirement by a majority vote of
the licensed teachers in the district and a majority vote of the
school board. A district in statutory operating debt is exempt
from this requirement.

new text begin Subd. 2. new text end

new text begin Fiscal years 2006 and 2007. new text end

new text begin A school district
is not subject to Minnesota Statutes, sections 122A.60 and
122A.61, subdivision 1, for fiscal years 2006 and 2007.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2005.
new text end

Sec. 59. new text begin KINDERGARTEN REPORTING.
new text end

new text begin Notwithstanding Minnesota Statutes, sections 120A.05,
subdivision 18; 120A.20, subdivision 1; and 124D.02, subdivision
1, pupils four or five years of age on September 1 of the
calendar year in which the school year commences and enrolled in
a prekindergarten program implemented by the district before
July 1, 2003, may be reported as kindergarten pupils under
Minnesota Statutes, section 126C.05, subdivision 1, for fiscal
years 2004 and earlier.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day
following final enactment and applies to fiscal years 2004 and
earlier.
new text end

Sec. 60. new text begin TRANSITION REVENUE ADJUSTMENTS.
new text end

new text begin For taxes payable in 2006, a district may levy an amount
equal to the increase in the district's transition revenue for
fiscal year 2006 under Minnesota Statutes, section 126C.10,
subdivision 31, paragraphs (c) and (d).
new text end

Sec. 61. new text begin ALTERNATIVE COMPENSATION REVENUE GUARANTEE.
new text end

new text begin Notwithstanding Minnesota Statutes, sections 122A.415,
subdivision 1, and 126C.10, subdivision 34, paragraphs (a) and
(b), a school district that received alternative compensation
aid for fiscal year 2005, but does not qualify for alternative
compensation revenue for all sites in the district for fiscal
year 2006 or 2007, shall receive additional basic alternative
compensation aid for that fiscal year equal to the lesser of the
amount of alternative compensation aid it received for fiscal
year 2005 or the amount it would have received for that fiscal
year under Minnesota Statutes 2004, section 122A.415,
subdivision 1, for teachers at sites not qualifying for
alternative compensation revenue for that fiscal year, if the
district submits a timely application and the commissioner
determines that the district continues to implement an
alternative professional pay system, consistent with its
application under Minnesota Statutes 2004, section 122A.415, for
fiscal year 2005. The additional basic alternative compensation
aid under this section must not be used in calculating the
alternative compensation levy under Minnesota Statutes, section
126C.10, subdivision 35. This section applies only to fiscal
years 2006 and 2007 and does not apply to later fiscal years.
new text end

Sec. 62. new text begin SCHOOL BUS LEVY; CARPENTER SCHOOL BUSES.
new text end

new text begin For taxes payable in 2006 through 2010, a school district
may levy an amount, not to exceed in the aggregate, $30,000
times the number of Carpenter school buses in its fleet as of
January 1, 2003, that have been determined to have potentially
defective welds and are subject to limitations imposed by the
Department of Public Safety.
new text end

Sec. 63. new text begin COMPENSATORY REVENUE ALLOCATION; TEST SCORE
PILOT PROGRAM.
new text end

new text begin Subdivision 1. new text end

new text begin Pilot program created. new text end

new text begin A three-year pilot
program is created to allow a school district to allocate
compensatory revenue received under Minnesota Statutes, section
126C.10, subdivision 3, among its school buildings according to
each building's school performance measures.
new text end

new text begin Subd. 2. new text end

new text begin Application process. new text end

new text begin A school district that
seeks to allocate its compensatory revenue to school sites based
on student performance may submit an application to the
commissioner of education by June 1, 2005. The application must
include a written resolution approved by the school board that:
(1) identifies the test results that will be used to assess
student performance; (2) describes the method for distribution
of compensatory revenue to the school sites; and (3) summarizes
the evaluation procedure the district will use to determine if
the redistribution of compensatory revenue improves overall
student performance. The application must be submitted in the
form and manner specified by the commissioner.
new text end

new text begin Subd. 3. new text end

new text begin Commissioner selection. new text end

new text begin The commissioner may
select up to five school districts to participate in the pilot
program. The commissioner must notify the selected school
districts by July 1, 2005.
new text end

new text begin Subd. 4. new text end

new text begin Report. new text end

new text begin The commissioner of education must
submit a report by February 15, 2008, to the education
committees of the legislature evaluating the effectiveness of
the pilot program.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day
following final enactment.
new text end

Sec. 64. new text begin FISCAL YEAR 2006 ONLY.
new text end

new text begin For fiscal year 2006 only, the increases in equity revenue
and operating capital revenue under Minnesota Statutes, section
126C.10, are payable entirely in state aid.
new text end

Sec. 65. new text begin FISCAL YEAR 2006 COMPENSATORY REVENUE FOR
REFUGEES.
new text end

new text begin (a) Notwithstanding Minnesota Statutes, section 126C.05,
subdivisions 3 and 16, refugees from the Wat Krabok Refugee Camp
in Thailand who were not enrolled in a Minnesota public school
on October 1, 2004, but who were enrolled in a Minnesota public
school on June 1, 2005, must be included in the calculation of
compensatory revenue pupil units for fiscal year 2006.
new text end

new text begin (b) The total aid expended under this section must not
exceed $2,000,000.
new text end

Sec. 66. new text begin APPROPRIATIONS.
new text end

new text begin Subdivision 1. new text end

new text begin Department of education. new text end

new text begin The sums
indicated in this section are appropriated from the general fund
to the Department of Education for the fiscal years designated.
new text end

new text begin Subd. 2. new text end

new text begin General education aid. new text end

new text begin For general education
aid under Minnesota Statutes, section 126C.13, subdivision 4:
new text end

new text begin $5,137,772,000 new text end new text begin ..... new text end new text begin 2006
new text end

new text begin $5,362,117,000 new text end new text begin ..... new text end new text begin 2007
new text end

new text begin The 2006 appropriation includes $784,978,000 for 2005 and
$4,352,794,000 for 2006.
new text end

new text begin The 2007 appropriation includes $815,002,000 for 2006 and
$4,547,088,000 for 2007.
new text end

new text begin Subd. 3. new text end

new text begin Referendum tax base replacement aid. new text end

new text begin For
referendum tax base replacement aid under Minnesota Statutes,
section 126C.17, subdivision 7a:
new text end

new text begin $8,704,000 new text end new text begin ..... new text end new text begin 2006
new text end

new text begin $8,704,000 new text end new text begin ..... new text end new text begin 2007
new text end

new text begin The 2006 appropriation includes $1,366,000 for 2005 and
$7,338,000 for 2006.
new text end

new text begin The 2007 appropriation includes $1,366,000 for 2006 and
$7,338,000 for 2007.
new text end

new text begin Subd. 4. new text end

new text begin Enrollment options transportation. new text end

new text begin For
transportation of pupils attending postsecondary institutions
under Minnesota Statutes, section 124D.09, or for transportation
of pupils attending nonresident districts under Minnesota
Statutes, section 124D.03:
new text end

new text begin $55,000 new text end new text begin ..... new text end new text begin 2006
new text end

new text begin $55,000 new text end new text begin ..... new text end new text begin 2007
new text end

new text begin Subd. 5. new text end

new text begin Abatement revenue. new text end

new text begin For abatement aid under
Minnesota Statutes, section 127A.49:
new text end

new text begin $903,000 new text end new text begin ..... new text end new text begin 2006
new text end

new text begin $955,000 new text end new text begin ..... new text end new text begin 2007
new text end

new text begin The 2006 appropriation includes $187,000 for 2005 and
$716,000 for 2006.
new text end

new text begin The 2007 appropriation includes $133,000 for 2006 and
$822,000 for 2007.
new text end

new text begin Subd. 6. new text end

new text begin Consolidation transition. new text end

new text begin For districts
consolidating under Minnesota Statutes, section 123A.485:
new text end

new text begin $253,000 new text end new text begin ..... new text end new text begin 2007
new text end

new text begin The 2007 appropriation includes $0 for 2006 and $253,000
for 2007.
new text end

new text begin Subd. 7. new text end

new text begin Nonpublic pupil education aid. new text end

new text begin For nonpublic
pupil education aid under Minnesota Statutes, sections 123B.87
and 123B.40 to 123B.43:
new text end

new text begin $15,324,000 new text end new text begin ..... new text end new text begin 2006
new text end

new text begin $16,327,000 new text end new text begin ..... new text end new text begin 2007
new text end

new text begin The 2006 appropriation includes $2,305,000 for 2005 and
$13,019,000 for 2006.
new text end

new text begin The 2007 appropriation includes $2,424,000 for 2006 and
$13,903,000 for 2007.
new text end

new text begin Subd. 8. new text end

new text begin Nonpublic pupil transportation. new text end

new text begin For nonpublic
pupil transportation aid under Minnesota Statutes, section
123B.92, subdivision 9:
new text end

new text begin $21,287,000 new text end new text begin ..... new text end new text begin 2006
new text end

new text begin $22,670,000 new text end new text begin ..... new text end new text begin 2007
new text end

new text begin The 2006 appropriation includes $3,274,000 for 2005 and
$18,013,000 for 2006.
new text end

new text begin The 2007 appropriation includes $3,354,000 for 2006 and
$19,316,000 for 2007.
new text end

new text begin Subd. 9. new text end

new text begin One room schoolhouse. new text end

new text begin For a grant to
Independent School District No. 690, Warroad, to operate the
Angle Inlet School:
new text end

new text begin $50,000 new text end new text begin ..... new text end new text begin 2006
new text end

new text begin $50,000 new text end new text begin ..... new text end new text begin 2007
new text end

new text begin Subd. 10. new text end

new text begin Declining pupil aid; albert lea. new text end

new text begin For declining
pupil aid to Independent School District No. 241, Albert Lea:
new text end

new text begin $75,000 new text end new text begin ..... new text end new text begin 2006
new text end

new text begin Subd. 11. new text end

new text begin Declining pupil aid; mesabi east. new text end

new text begin For
declining pupil aid to Independent School District No. 2711,
Mesabi East:
new text end

new text begin $50,000 new text end new text begin ..... new text end new text begin 2006
new text end

new text begin Subd. 12. new text end

new text begin Declining pupil aid; roseau. new text end

new text begin For declining
pupil aid to Independent School District No. 682, Roseau:
new text end

new text begin $10,000 new text end new text begin ..... new text end new text begin 2006
new text end

new text begin Subd. 13. new text end

new text begin Compensatory revenue pilot project. new text end

new text begin For a
grant to Independent School District No. 11, Anoka-Hennepin, for
participation in the compensatory revenue pilot program under
section 63:
new text end

new text begin $2,000,000 new text end new text begin ..... new text end new text begin 2006
new text end

new text begin $2,000,000 new text end new text begin ..... new text end new text begin 2007
new text end

new text begin This appropriation is part of the base budget for
subsequent fiscal years.
new text end

Sec. 67. new text begin REPEALER.
new text end

new text begin Subdivision 1. new text end

new text begin July 1, 2005. new text end

new text begin Minnesota Statutes 2004,
sections 122A.415, subdivision 2; 123B.83, subdivision 1; and
126C.42, subdivisions 1 and 4, are repealed.
new text end

new text begin Subd. 2. new text end

new text begin Fiscal year 2007. new text end

new text begin Minnesota Statutes 2004,
section 126C.12, is repealed for revenue for fiscal year 2007.
new text end

ARTICLE 2

EXCELLENCE IN EDUCATION

Section 1.

Minnesota Statutes 2004, section 13.32,
subdivision 1, is amended to read:

Subdivision 1.

Definitions.

As used in this section:

(a) new text begin "Continuing truant" means a student under section
260A.02, subdivision 3, who is absent without valid excuse from
instruction in a school.
new text end

new text begin (b) new text end "Educational data" means data on individuals maintained
by a public educational agency or institution or by a person
acting for the agency or institution which relates to a student.

Records of instructional personnel which are in the sole
possession of the maker thereof and are not accessible or
revealed to any other individual except a substitute teacher,
and are destroyed at the end of the school year, shall not be
deemed to be government data.

Records of a law enforcement unit of a public educational
agency or institution which are maintained apart from education
data and are maintained solely for law enforcement purposes, and
are not disclosed to individuals other than law enforcement
officials of the jurisdiction are not educational data;
provided, that education records maintained by the educational
agency or institution are not disclosed to the personnel of the
law enforcement unit. The University of Minnesota police
department is a law enforcement agency for purposes of section
13.82 and other sections of Minnesota Statutes dealing with law
enforcement records. Records of organizations providing
security services to a public educational agency or institution
must be administered consistent with section 13.861.

Records relating to a student who is employed by a public
educational agency or institution which are made and maintained
in the normal course of business, relate exclusively to the
individual in that individual's capacity as an employee, and are
not available for use for any other purpose are classified
pursuant to section 13.43.

deleted text begin (b) deleted text end new text begin (c) "Habitual truant" means a student under section
260C.007, subdivision 19, who is absent without lawful excuse
from attendance at school.
new text end

new text begin (d) new text end "Juvenile justice system" includes criminal justice
agencies and the judiciary when involved in juvenile justice
activities.

deleted text begin (c) deleted text end new text begin (e) new text end "Student" means an individual currently or formerly
enrolled or registered, applicants for enrollment or
registration at a public educational agency or institution, or
individuals who receive shared time educational services from a
public agency or institution.

deleted text begin (d) deleted text end new text begin (f) new text end "Substitute teacher" means an individual who
performs on a temporary basis the duties of the individual who
made the record, but does not include an individual who
permanently succeeds to the position of the maker of the record.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2005.
new text end

Sec. 2.

Minnesota Statutes 2004, section 13.32,
subdivision 8, is amended to read:

Subd. 8.

Access by juvenile justice system.

(a) Upon
request, the following education data shall be disclosed under
subdivision 3, clause (i), to the juvenile justice system: a
student's full name, home address, telephone number, date of
birth; a student's school schedule, new text begin daily new text end attendance record, and
photographs, if any; and parents' names, home addresses, and
telephone numbers.

(b) In addition, the existence of the following data about
a student may be disclosed under subdivision 3, clause (i):

(1) use of a controlled substance, alcohol, or tobacco;

(2) assaultive or threatening conduct that could result in
dismissal from school under section 121A.45, subdivision 2,
clause (b) or (c);

(3) possession or use of weapons or look-alike weapons;

(4) theft; or

(5) vandalism or other damage to property.

Any request for access to data under this paragraph must
contain an explanation of why access to the data is necessary to
serve the student.

(c) A principal or chief administrative officer of a school
who receives a request to disclose information about a student
to the juvenile justice system under paragraph (b) shall, to the
extent permitted by federal law, notify the student's parent or
guardian by certified mail of the request to disclose
information before disclosing the information. If the student's
parent or guardian notifies the principal or chief
administrative officer within ten days of receiving the
certified notice that the parent or guardian objects to the
disclosure, the principal or chief administrative officer must
not disclose the information. The principal or chief
administrative officer must inform the requesting member of the
juvenile justice system of the objection.

(d) A principal or chief administrative officer is not
required to create data under this subdivision. Information
provided in response to a data request under paragraph (b) shall
indicate only whether the data described in paragraph (b)
exist. The principal or chief administrative officer is not
authorized under paragraph (b) to disclose the actual data or
other information contained in the student's education record.
A principal or chief administrative officer is not required to
provide data that are protected by court order. A principal or
chief administrative officer must respond to a data request
within 14 days if no objection is received from the parent or
guardian.

(e) new text begin If the school board does not waive the school
attendance requirement for driving privileges, then a principal
or chief school administrator may disclose to the juvenile
justice system only the student's continuing or habitual truancy
status.
new text end

new text begin (f) new text end Nothing in this subdivision shall limit the disclosure
of educational data pursuant to court order.

deleted text begin (f) deleted text end new text begin (g) new text end A school district, its agents, and employees who
provide data in good faith under this subdivision are not liable
for compensatory or exemplary damages or an award of attorney
fees in an action under section 13.08, or other law, or for a
penalty under section 13.09.

deleted text begin (g) deleted text end new text begin (h) new text end Section 13.03, subdivision 4, applies to data that
are shared under this subdivision with a government entity. If
data are shared with a member of the juvenile justice system who
is not a government entity, the person receiving the shared data
must treat the data consistent with the requirements of this
chapter applicable to a government entity.

deleted text begin (h) deleted text end new text begin (i) new text end A member of the juvenile justice system who falsely
certifies a request for data under this section is subject to
the penalties under section 13.09.

Sec. 3.

Minnesota Statutes 2004, section 120A.22,
subdivision 12, is amended to read:

Subd. 12.

Legitimate exemptions.

A parent, guardian, or
other person having control of a child may apply to a school
district to have the child excused from attendance for the whole
or any part of the time school is in session during any school
year. Application may be made to any member of the board, a
truant officer, a principal, or the superintendent. new text begin The school
district may state in its school attendance policy that it may
ask the student's parent or legal guardian to verify in writing
the reason for the child's absence from school. new text end The board of
the district in which the child resides may approve the
application upon the following being demonstrated to the
satisfaction of that board:

(1) that the child's bodily or mental condition is such as
to prevent attendance at school or application to study for the
period required deleted text begin ; or deleted text end new text begin , which includes:
new text end

new text begin (i) child illness, medical, dental, orthodontic, or
counseling appointments;
new text end

new text begin (ii) family emergencies;
new text end

new text begin (iii) the death or serious illness or funeral of an
immediate family member;
new text end

new text begin (iv) active duty in any military branch of the United
States; or
new text end

new text begin (v) other exemptions included in the district's school
attendance policy;
new text end

(2) that deleted text begin for the school years 1988-1989 through 1999-2000
the child has already completed the studies ordinarily required
in the 10th grade and that for the school years beginning with
the 2000-2001 school year the child has already completed the
studies ordinarily required to graduate deleted text end new text begin the child has already
completed state and district standards required for graduation
new text end from high school; or

(3) that it is the wish of the parent, guardian, or other
person having control of the child, that the child attend for a
period or periods not exceeding in the aggregate three hours in
any week, a school for religious instruction conducted and
maintained by some church, or association of churches, or any
Sunday school association incorporated under the laws of this
state, or any auxiliary thereof. This school for religious
instruction must be conducted and maintained in a place other
than a public school building, and it must not, in whole or in
part, be conducted and maintained at public expense. However, a
child may be absent from school on such days as the child
attends upon instruction according to the ordinances of some
church.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2005.
new text end

Sec. 4.

new text begin [120A.23] SCHOOL ATTENDANCE REQUIREMENT; DRIVING
PRIVILEGES.
new text end

new text begin A district school board, board of a state approved
alternative program (SAAP), or charter school board of directors
by majority vote, may waive the school attendance requirement
for driving privileges under section 171.056 for the students it
enrolls. The board must vote to waive the requirement before
September 1 of the initial school year in which the waiver is
effective and immediately must transmit an electronic notice to
the Department of Public Safety. If a board intends to rescind
its waiver and require students to comply with the school
attendance requirement under section 171.056 for any subsequent
school year, the board must vote before September 1 of the
school year in which the waiver is initially rescinded and
immediately must transmit an electronic notice to the Department
of Public Safety.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2005.
new text end

Sec. 5.

Minnesota Statutes 2004, section 120B.02, is
amended to read:

120B.02 EDUCATIONAL EXPECTATIONS FOR MINNESOTA'S
STUDENTS.

(a) The legislature is committed to establishing rigorous
academic standards for Minnesota's public school students. To
that end, the commissioner shall adopt in rule statewide
academic standards. The commissioner shall not prescribe in
rule or otherwise the delivery system, classroom assessments, or
form of instruction that school sites must use. For purposes of
this chapter, a school site is a separate facility, or a
separate program within a facility that a local school board
recognizes as a school site for funding purposes.

(b) All commissioner actions regarding the rule must be
premised on the following:

(1) the rule is intended to raise academic expectations for
students, teachers, and schools;

(2) any state action regarding the rule must evidence
consideration of school district autonomy; and

(3) the Department of Education, with the assistance of
school districts, must make available information about all
state initiatives related to the rule to students and parents,
teachers, and the general public in a timely format that is
appropriate, comprehensive, and readily understandable.

(c) When fully implemented, the requirements for high
school graduation in Minnesota must require students to deleted text begin pass the
basic skills test requirements and deleted text end satisfactorily complete, as
determined by the school district, the course credit
requirements under section 120B.024 new text begin and:
new text end

new text begin (1) for students enrolled in grade 8 before the 2005-2006
school year, to pass the basic skills test requirements; and
new text end

new text begin (2) for students enrolled in grade 8 in the 2005-2006
school year and later, to pass the Minnesota Comprehensive
Assessments Second Edition (MCA-IIs) new text end .

(d) The commissioner shall periodically review and report
on the state's assessment process.

(e) School districts are not required to adopt specific
provisions of deleted text begin the Goals 2000 and deleted text end the federal School-to-Work
programs.

Sec. 6.

Minnesota Statutes 2004, section 120B.021,
subdivision 1, is amended to read:

Subdivision 1.

Required academic standards.

The
following subject areas are required for statewide
accountability:

(1) language arts;

(2) mathematics;

(3) science;

(4) social studies, including history, geography,
economics, and government and citizenship;

(5) health and physical education, for which locally
developed academic standards apply; and

(6) the arts, for which statewide or locally developed
academic standards apply, as determined by the school district.
Public elementary and middle schools must offer at least three
and require at least two of the following four arts areas:
dance; music; theater; and visual arts. Public high schools
must offer at least three and require at least one of the
following five arts areas: media arts; dance; music; theater;
and visual arts.

The commissioner must submit proposed standards in science
and social studies to the legislature by February 1, 2004.

For purposes of applicable federal law, the academic standards
for language arts, mathematics, and science apply to all public
school students, except the very few students with extreme
cognitive or physical impairments for whom an individualized
education plan team has determined that the required academic
standards are inappropriate. An individualized education plan
team that makes this determination must establish alternative
standards.

A school district, no later than the 2007-2008 school year,
must adopt graduation requirements that meet or exceed state
graduation requirements established in law or rule. A school
district that incorporates these state graduation requirements
before the 2007-2008 school year must provide students who enter
the 9th grade in or before the 2003-2004 school year the
opportunity to earn a diploma based on existing locally
established graduation requirements in effect when the students
entered the 9th grade. District efforts to develop, implement,
or improve instruction or curriculum as a result of the
provisions of this section must be consistent with sections
120B.10, 120B.11, and 120B.20.

new text begin At a minimum, school districts must maintain for the
2005-2006 through 2007-2008 school years the same physical
education and health education student instruction time for
kindergarten through 8th grade students adopted in the 2004-2005
school year.
new text end

Sec. 7.

Minnesota Statutes 2004, section 120B.021, is
amended by adding a subdivision to read:

new text begin Subd. 1a. new text end

new text begin Rigorous course of study; waiver. new text end

new text begin (a) Upon
receiving a student's application signed by the student's parent
or guardian, a school district, area learning center, or charter
school must declare that a student meets or exceeds a specific
academic standard required for graduation under this section if
the local school board, the school board of the school district
in which the area learning center is located, or the charter
school board of directors determines that the student:
new text end

new text begin (1) is participating in a course of study including an
advanced placement course or an international baccalaureate
course or program that is consistent with state academic
standards, a learning opportunity outside the curriculum of the
district, area learning center or charter school, or an approved
preparatory program for employment or postsecondary education
that is equally or more rigorous than the corresponding state or
local academic standard required by the district, area learning
center, or charter school;
new text end

new text begin (2) would be precluded from participating in the rigorous
course of study, learning opportunity, or preparatory employment
or postsecondary education program if the student were required
to achieve the academic standard to be waived; and
new text end

new text begin (3) satisfactorily completes the requirements for the
rigorous course of study, learning opportunity, or preparatory
employment or postsecondary education program.
new text end

new text begin Consistent with the requirements of this section, the local
school board, the school board of the school district in which
the area learning center is located, or the charter school board
of directors also may formally determine other circumstances in
which to declare that a student meets or exceeds a specific
academic standard that the site requires for graduation under
this section.
new text end

new text begin (b) A student who satisfactorily completes a postsecondary
enrollment options course or program under section 124D.09 is
not required to complete other requirements of the academic
standards corresponding to that specific rigorous course of
study.
new text end

Sec. 8.

Minnesota Statutes 2004, section 120B.024, is
amended to read:

120B.024 GRADUATION REQUIREMENTS; COURSE CREDITS.

Students beginning 9th grade in the 2004-2005 school year
and later must successfully complete the following high school
level course credits for graduation:

(1) four credits of language arts;

(2) three credits of mathematics, encompassing at least
algebra, geometry, statistics, and probability sufficient to
satisfy the academic standard;

(3) three credits of science, including at least one credit
in biology;

(4) three and one-half credits of social studies,
encompassing at least United States history, geography,
government and citizenship, world history, and economics or
three credits of social studies encompassing at least United
States history, geography, government and citizenship, and world
history, and one-half credit of economics taught in a school's
social studies or business department;

(5) one credit in the arts; deleted text begin and
deleted text end

(6) new text begin one-half credit in physical education and one-half
credit in health education; and
new text end

new text begin (7) new text end a minimum of deleted text begin seven deleted text end new text begin six new text end elective course credits.

A course credit is equivalent to a student successfully
completing an academic year of study or a student mastering the
applicable subject matter, as determined by the local school
district.

Sec. 9.

Minnesota Statutes 2004, section 120B.11,
subdivision 1, is amended to read:

Subdivision 1.

Definitions.

For the purposes of this
section and section 120B.10, the following terms have the
meanings given them.

(a) "Instruction" means methods of providing learning
experiences that deleted text begin enables deleted text end new text begin enable new text end a student to meet new text begin state and
district academic standards and new text end graduation
deleted text begin standards deleted text end new text begin requirements new text end .

(b) "Curriculum" means new text begin district or school adopted programs
and new text end written plans for providing students with learning
experiences that lead to new text begin expected new text end knowledge deleted text begin , deleted text end new text begin and new text end skills deleted text begin , and
positive attitudes deleted text end .

Sec. 10.

Minnesota Statutes 2004, section 120B.11,
subdivision 2, is amended to read:

Subd. 2.

Adopting policies.

(a) A school board shall
deleted text begin adopt annually a deleted text end new text begin have in place an adopted new text end written policy that
includes the following:

(1) district goals for instruction deleted text begin and deleted text end new text begin including the use of
best practices, district and school new text end curriculum new text begin , and achievement
for all student subgroups new text end ;

(2) a process for evaluating each student's progress toward
meeting deleted text begin graduation deleted text end new text begin academic new text end standards and identifying the
strengths and weaknesses of instruction and curriculum affecting
students' progress;

(3) a system for periodically reviewing new text begin and evaluating new text end all
instruction and curriculum;

(4) a plan for improving instruction deleted text begin and deleted text end new text begin , new text end curriculum new text begin , and
student achievement new text end ; and

(5) an deleted text begin instruction plan that includes deleted text end education
effectiveness deleted text begin processes developed under deleted text end new text begin plan aligned with
new text end section 122A.625 deleted text begin and deleted text end new text begin that new text end integrates instruction, curriculum,
and technology.

Sec. 11.

Minnesota Statutes 2004, section 120B.11,
subdivision 3, is amended to read:

Subd. 3.

deleted text begin instruction and curriculum deleted text end new text begin district new text end advisory
committee.

Each school board shall establish an deleted text begin Instruction and
Curriculum deleted text end advisory committee to ensure active community
participation in all phases of planning and improving the
instruction and curriculum affecting state deleted text begin graduation deleted text end new text begin and
district academic new text end standards. A district advisory committee, to
the extent possible, shall reflect the diversity of the district
and its learning sites, and shall include teachers, parents,
support staff, deleted text begin pupils deleted text end new text begin students new text end , and other community residents.
The district may establish building teams as subcommittees of
the district advisory committee under subdivision 4. The
district advisory committee shall recommend to the school
board deleted text begin districtwide education standards deleted text end new text begin rigorous academic
standards, student achievement goals and measures new text end , assessments,
and program evaluations. Learning sites may expand upon
district evaluations of instruction, curriculum, assessments, or
programs. Whenever possible, parents and other community
residents shall comprise at least two-thirds of advisory
committee members.

Sec. 12.

Minnesota Statutes 2004, section 120B.11,
subdivision 4, is amended to read:

Subd. 4.

Building team.

A school may establish a
building team to develop and implement an education
effectiveness plan to improve instruction deleted text begin and deleted text end new text begin , new text end curriculum new text begin , and
student achievement new text end . The team shall advise the board and the
advisory committee about developing an instruction and
curriculum improvement plan that aligns curriculum, assessment
of student progress in meeting state deleted text begin graduation deleted text end new text begin and district
academic new text end standards, and instruction.

Sec. 13.

Minnesota Statutes 2004, section 120B.11,
subdivision 5, is amended to read:

Subd. 5.

Report.

(a) By October 1 of each year, the
school board shall use standard statewide reporting procedures
the commissioner develops and adopt a report that includes the
following:

(1) student deleted text begin performance deleted text end new text begin achievement new text end goals for meeting state
deleted text begin graduation deleted text end new text begin academic new text end standards deleted text begin adopted for that year deleted text end ;

(2) results of local assessment data, and any additional
test data;

(3) the annual school district improvement plans new text begin including
staff development goals under section 122A.60 new text end ;

(4) information about district and learning site progress
in realizing previously adopted improvement plans; and

(5) the amount and type of revenue attributed to each
education site as defined in section 123B.04.

(b) The school board shall publish the report in the local
newspaper with the largest circulation in the district deleted text begin or deleted text end new text begin , new text end by
mail new text begin , or by electronic means such as the district Web site. If
electronic means are used, school districts must publish notice
of the report in a periodical of general circulation in the
district. School districts must make copies of the report
available to the public on request new text end . The board shall make a copy
of the report available to the public for inspection. The board
shall send a copy of the report to the commissioner of education
by October 15 of each year.

(c) The title of the report shall contain the name and
number of the school district and read "Annual Report on
Curriculum, Instruction, and Student deleted text begin Performance deleted text end new text begin Achievement new text end ."
The report must include at least the following information about
advisory committee membership:

(1) the name of each committee member and the date when
that member's term expires;

(2) the method and criteria the school board uses to select
committee members; and

(3) the date by which a community resident must apply to
next serve on the committee.

Sec. 14.

Minnesota Statutes 2004, section 120B.11,
subdivision 8, is amended to read:

Subd. 8.

Biennial evaluation; assessment program.

At
least once every two years, the district report shall include an
evaluation of the district testing programs, according to the
following:

(1) written objectives of the assessment program;

(2) names of tests and grade levels tested;

(3) use of test results; and

(4) deleted text begin implementation of an assurance of mastery program
deleted text end new text begin student achievement results compared to previous years new text end .

Sec. 15.

new text begin [120B.128] EDUCATIONAL PLANNING AND ASSESSMENT
SYSTEM (EPAS) PROGRAM.
new text end

new text begin (a) School districts and charter schools may elect to
participate in the Educational Planning and Assessment System
(EPAS) program offered by ACT, Inc. to provide a longitudinal,
systematic approach to student educational and career planning,
assessment, instructional support, and evaluation. The EPAS
achievement tests include English, reading, mathematics,
science, and components on planning for high school and
postsecondary education, interest inventory, needs assessments,
and student education plans. These tests are linked to the ACT
assessment for college admission and allow students, parents,
teachers, and schools to determine the student's college
readiness before grades 11 and 12.
new text end

new text begin (b) The commissioner of education shall provide ACT Explore
tests for students in grade 8 and the ACT Plan test for students
in grade 10 to assess individual student academic strengths and
weaknesses, academic achievement and progress, higher order
thinking skills, and college readiness. The state shall pay the
test costs for school districts and charter schools that choose
to participate in the EPAS program. The commissioner shall
establish an application procedure and a process for state
payment of costs.
new text end

Sec. 16.

Minnesota Statutes 2004, section 120B.13,
subdivision 1, is amended to read:

Subdivision 1.

Program structure; training programs for
teachers.

(a) The advanced placement and international
baccalaureate programs are well-established academic programs
for mature, academically directed high school students. These
programs, in addition to providing academic rigor, offer sound
curricular design, accountability, comprehensive external
assessment, feedback to students and teachers, and the
opportunity for high school students to compete academically on
a global level. Advanced placement and international
baccalaureate programs allow students to leave high school with
the academic skills and self-confidence to succeed in college
and beyond. The advanced placement and international
baccalaureate programs help provide Minnesota students with
world-class educational opportunity.

(b) Critical to schools' educational success is ongoing
advanced placement/international baccalaureate-approved teacher
training. A secondary teacher assigned by a district to teach
an advanced placement or international baccalaureate course or
other interested educator may participate in a training program
offered by The College Board or International Baccalaureate
North America, Inc. The state may pay a portion of the tuition,
room, deleted text begin and deleted text end board new text begin , and out-of-state travel new text end costs a teacher or
other interested educator incurs in participating in a training
program. The commissioner shall determine application
procedures and deadlines, deleted text begin and deleted text end select teachers and other
interested educators to participate in the training program new text begin , and
determine the payment process and amount of the subsidy new text end . The
procedures determined by the commissioner shall, to the extent
possible, ensure that advanced placement and international
baccalaureate courses become available in all parts of the state
and that a variety of course offerings are available in school
districts. This subdivision does not prevent teacher or other
interested educator participation in training programs offered
by The College Board or International Baccalaureate North
America, Inc., when tuition is paid by a source other than the
state.

Sec. 17.

Minnesota Statutes 2004, section 120B.13,
subdivision 3, is amended to read:

Subd. 3.

Subsidy for examination fees.

The state may pay
all or part of the fee for advanced placement or international
baccalaureate examinations deleted text begin for pupils of low-income families in
public and nonpublic schools deleted text end . The commissioner shall deleted text begin adopt a
schedule for fee subsidies that may allow payment of the entire
fee for deleted text end new text begin pay all examination fees for all public and nonpublic
students of new text end low-income families, as defined by the commissioner new text begin ,
and to the limit of the available appropriation, shall also pay
a portion or all of the examination fees for other public and
nonpublic students sitting for an advanced placement
examination, international baccalaureate examination, or both new text end .
The commissioner shall determine procedures for state payments
of fees.

Sec. 18.

Minnesota Statutes 2004, section 120B.13, is
amended by adding a subdivision to read:

new text begin Subd. 3a. new text end

new text begin College credit. new text end

new text begin The colleges and universities
of the Minnesota State Colleges and Universities system must
award, and the University of Minnesota and private postsecondary
institutions are encouraged to award, college credit to high
school students who receive a score of three or higher on an
advanced placement or four or higher on the international
baccalaureate program examination.
new text end

Sec. 19.

new text begin [120B.131] COLLEGE-LEVEL EXAMINATION PROGRAM
(CLEP).
new text end

new text begin Subdivision 1. new text end

new text begin Program structure. new text end

new text begin The College-Level
Examination Program (CLEP) offered by the College Board provides
students with the opportunity to demonstrate college-level
achievement and receive college credit or advanced standing
through a program of examinations in undergraduate college
courses. Schools must provide information about CLEP and the
opportunity to receive college credit from a Minnesota
postsecondary institution to students successfully completing a
college-level course.
new text end

new text begin Subd. 2. new text end

new text begin Reimbursement for examination fees. new text end

new text begin The state
may reimburse CLEP examination fees for a Minnesota public high
school student who has successfully completed one or more
college-level courses in high school and earned a satisfactory
score on one or more CLEP examinations in the following subjects:
composition and literature, mathematics and science, social
sciences and history, foreign languages, and business and
humanities. The state may reimburse each successful student for
up to six examination fees. The commissioner shall establish
application procedures and a process and schedule for fee
reimbursements. The commissioner must give priority to
reimburse the CLEP examination fees of students of low-income
families.
new text end

new text begin Subd. 3. new text end

new text begin College credit. new text end

new text begin The colleges and universities
of the Minnesota State Colleges and Universities system must
award, and the University of Minnesota and private postsecondary
institutions are encouraged to award, college credit to high
school students who receive a satisfactory score on a CLEP
examination under this section. The commissioner, in
consultation with the Minnesota State Colleges and Universities,
shall set a passing score for college credits.
new text end

Sec. 20.

new text begin [120B.15] GIFTED AND TALENTED STUDENTS
PROGRAMS.
new text end

new text begin School districts may identify students, locally develop
programs, provide staff development, and evaluate programs to
provide gifted and talented students with challenging
educational programs.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for the
2005-2006 school year.
new text end

Sec. 21.

new text begin [120B.225] CHARACTER DEVELOPMENT EDUCATION.
new text end

new text begin Subdivision 1. new text end

new text begin Character development education. new text end

new text begin The
legislature encourages districts to integrate or offer
instruction on character education including, but not limited
to, character qualities such as attentiveness, truthfulness,
respect for authority, diligence, gratefulness, self-discipline,
patience, forgiveness, respect for others, peacemaking, and
resourcefulness. Districts are not limited to, but may use
programs such as Character First and Character Counts.
Instruction should be integrated into a district's existing
programs, curriculum, or the general school environment. The
commissioner shall provide assistance at the request of a
district to develop character education curriculum and programs.
new text end

new text begin Subd. 2. new text end

new text begin Funding sources. new text end

new text begin The commissioner must first
use federal funds for character development education programs
to the extent available under United States Code, title 20,
section 7247. Districts may accept funds from private and other
public sources for character development education programs
developed and implemented under this section.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day
following final enactment.
new text end

Sec. 22.

Minnesota Statutes 2004, section 120B.23, is
amended to read:

120B.23 VIOLENCE PREVENTION new text begin AND CHARACTER DEVELOPMENT
new text end EDUCATION GRANTS.

Subdivision 1.

Grant program established.

The
commissioner of education, after consulting with the assistant
commissioner of the Office of Drug Policy and Violence
Prevention, shall establish a violence prevention new text begin and character
development new text end education grant program new text begin , consistent with section
120B.255, subdivision 1, new text end to enable a school district, an
education district, or a group of districts that cooperate for a
particular purpose to develop and implement or to continue a
violence prevention new text begin and character development new text end program for
students in kindergarten through grade 12 that can be integrated
into existing curriculum. A district or group of districts that
elects to develop and implement or to continue a violence
prevention new text begin and character development new text end program under section
120B.22 is eligible to apply for a grant under this section.

Subd. 2.

Grant application.

To be eligible to receive a
grant, a school district, an education district, a service
cooperative, or a group of districts that cooperate for a
particular purpose must submit an application to the
commissioner in the form and manner and according to the
timeline established by the commissioner. The application must
describe how the applicant will: (1) continue or integrate into
its existing K-12 curriculum new text begin or into cocurricular or
extracurricular activities new text end a program for violence prevention
deleted text begin that contains the program components listed in section
120B.22 deleted text end new text begin and character development new text end ; (2) collaborate with local
organizations involved in violence prevention and
intervention new text begin and character development new text end ; and (3) structure the
program to reflect the characteristics of the children, their
families and the community involved in the program. The
commissioner may require additional information from the
applicant. When reviewing the applications, the commissioner
shall determine whether the applicant has met the requirements
of this subdivision.

Subd. 3.

Grant awards.

The commissioner may award grants
for a violence prevention new text begin and character development new text end education
program to eligible applicants as defined in subdivision 2.
Grant amounts may not exceed $3 per resident pupil unit in the
district or group of districts in the prior school year. Grant
recipients should be geographically distributed throughout the
state.

Subd. 4.

Grant proceeds.

A successful applicant must use
the grant money to develop and implement or to continue a
violence prevention new text begin and character development new text end program according
to the terms of the grant application.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day
following final enactment.
new text end

Sec. 23.

new text begin [120B.25] AMERICAN HERITAGE EDUCATION.
new text end

new text begin (a) School districts shall permit grade-level instruction
to ensure students have the opportunity to read and study
America's founding documents that provide an understanding of
the principles, character, and world view of America's founders;
including documents that contributed to the foundation or
maintenance of America's representative republican form of
limited government, the Bill of Rights, our free-market economic
system, and patriotism. Districts shall permit a principal or
teacher to appropriately use, read, or post in a public school
building, classroom, or at any public school event any excerpts
or portions of the original source documents, writings,
speeches, proclamations, or records relating to the history,
heritage, or foundation of the United States or the state of
Minnesota, including, but not limited to:
new text end

new text begin (1) the Mayflower Compact;
new text end

new text begin (2) the Declaration of Independence;
new text end

new text begin (3) the Constitutions of the United States and the state of
Minnesota;
new text end

new text begin (4) the Northwest Ordinance of 1787;
new text end

new text begin (5) the Federalist Papers;
new text end

new text begin (6) the Pledge of Allegiance;
new text end

new text begin (7) the national anthem;
new text end

new text begin (8) Washington's farewell address to the nation;
new text end

new text begin (9) Lincoln's Gettysburg address;
new text end

new text begin (10) the acts and published records of Congress; and
new text end

new text begin (11) the United States Supreme Court decisions and records.
new text end

new text begin (b) Districts may not censor or restrain instruction in
American or Minnesota state history or heritage based on
religious references in original source documents, writings,
speeches, proclamations, or records described under paragraph
(a). These and any other materials must be used for educational
purposes and not to establish any religion.
new text end

new text begin (c) Students may voluntarily choose to read, write, share,
report, or otherwise study a topic which is religious in nature
provided other students are provided with the same opportunity
to freely choose a topic.
new text end

Sec. 24.

Minnesota Statutes 2004, section 120B.30,
subdivision 1, is amended to read:

Subdivision 1.

Statewide testing.

(a) The commissioner,
with advice from experts with appropriate technical
qualifications and experience and stakeholders, consistent with
subdivision 1a, shall include in the comprehensive assessment
system, for each grade level to be tested, state-constructed
tests developed from and aligned with the state's required
academic standards under section 120B.021 and administered
annually to all students in grades 3 through 8 and at the high
school level. A state-developed test in a subject other than
writing, developed after the 2002-2003 school year, must include
both multiple choice and constructed response questions. The
commissioner shall establish one or more months during which
schools shall administer the tests to students each school
year. new text begin For students enrolled in grade 8 before the 2005-2006
school year, new text end only Minnesota basic skills tests in reading,
mathematics, and writing shall fulfill students' basic skills
testing requirements for a passing state notation. The passing
scores of the state tests in reading and mathematics are the
equivalent of:

(1) 70 percent correct for students entering grade 9 in
1996; and

(2) 75 percent correct for students entering grade 9 in
1997 and thereafter, as based on the first uniform test
administration of February 1998.

new text begin For students enrolled in grade 8 in the 2005-2006 school
year and later, only the Minnesota Comprehensive Assessments
Second Edition (MCA-IIs) in reading, mathematics, and writing
shall fulfill students' academic standard requirements.
new text end

(b) The third through 8th grade and high school level test
results shall be available to districts for diagnostic purposes
affecting student learning and district instruction and
curriculum, and for establishing educational accountability.
The commissioner must disseminate to the public the test results
upon receiving those results.

(c) State tests must be constructed and aligned with state
academic standards. The testing process and the order of
administration shall be determined by the commissioner. The
statewide results shall be aggregated at the site and district
level, consistent with subdivision 1a.

(d) In addition to the testing and reporting requirements
under this section, the commissioner shall include the following
components in the statewide public reporting system:

(1) uniform statewide testing of all students in grades 3
through 8 and at the high school level that provides exemptions,
only with parent or guardian approval, for those very few
students for whom the student's individual education plan team
under sections 125A.05 and 125A.06, determines that the student
is incapable of taking a statewide test, or for a limited
English proficiency student under section 124D.59, subdivision
2, if the student has been in the United States for fewer than
three years;

(2) educational indicators that can be aggregated and
compared across school districts and across time on a statewide
basis, including average daily attendance, high school
graduation rates, and high school drop-out rates by age and
grade level;

(3) students' scores on the American College Test; and

(4) state results from participation in the National
Assessment of Educational Progress so that the state can
benchmark its performance against the nation and other states,
and, where possible, against other countries, and contribute to
the national effort to monitor achievement.

(e) Districts must report exemptions under paragraph (d),
clause (1), to the commissioner consistent with a format
provided by the commissioner.

Sec. 25.

Minnesota Statutes 2004, section 120B.30,
subdivision 1a, is amended to read:

Subd. 1a.

Statewide and local assessments; results.

(a)
The commissioner must develop deleted text begin language arts deleted text end new text begin reading new text end ,
mathematics, and science assessments aligned with state academic
standards that districts and sites must use to monitor student
growth toward achieving those standards. The commissioner must
not develop statewide assessments for academic standards in
social studies new text begin , health and physical education, new text end and the arts.
The commissioner must require:

(1) annual deleted text begin language arts deleted text end new text begin reading new text end and mathematics
assessments in grades 3 through 8 and at the high school level
for the 2005-2006 school year and later; and

(2) annual science assessments in one grade in the grades 3
through 5 span, the grades 6 through 9 span, and a life sciences
assessment in the grades 10 through 12 span for the 2007-2008
school year and later.

(b) The commissioner must ensure that all statewide tests
administered to elementary and secondary students measure
students' academic knowledge and skills and not students'
values, attitudes, and beliefs.

(c) Reporting of assessment results must:

(1) provide timely, useful, and understandable information
on the performance of individual students, schools, school
districts, and the state;

(2) include, by the 2006-2007 school year, a value-added
component to measure student achievement growth over time; and

(3) new text begin for students enrolled in grade 8 before the 2005-2006
school year, new text end determine whether students have met the state's
basic skills requirements new text begin ; and
new text end

new text begin (4) for students enrolled in grade 8 in the 2005-2006
school year and later, determine whether students have met the
state's academic standards new text end .

(d) Consistent with applicable federal law and subdivision
1, paragraph (d), clause (1), the commissioner must include
alternative assessments for the very few students with
disabilities for whom statewide assessments are inappropriate
and for students with limited English proficiency.

(e) A school, school district, and charter school must
administer statewide assessments under this section, as the
assessments become available, to evaluate student progress in
achieving the academic standards. If a state assessment is not
available, a school, school district, and charter school must
determine locally if a student has met the required academic
standards. A school, school district, or charter school may use
a student's performance on a statewide assessment as one of
multiple criteria to determine grade promotion or retention. A
school, school district, or charter school may use a high school
student's performance on a statewide assessment as a percentage
of the student's final grade in a course, or place a student's
assessment score on the student's transcript.

Sec. 26.

new text begin [120B.362] VALUE-ADDED ASSESSMENT PROGRAM.
new text end

new text begin (a) The commissioner of education must implement a
value-added assessment program to assist school districts,
public schools, and charter schools in assessing and reporting
individual students' growth in academic achievement under
section 120B.30, subdivision 1a. The program must use
assessments of individual students' academic achievement to make
longitudinal comparisons of each student's academic growth over
time. School districts, public schools, and charter schools may
apply to the commissioner to participate in the initial trial
program using a form and in the manner the commissioner
prescribes. The commissioner must select program participants
from urban, suburban, and rural areas throughout the state.
new text end

new text begin (b) The commissioner may issue a request for proposals to
contract with an organization that provides a value-added
assessment model that reliably estimates school and school
district effects on students' academic achievement over time.
The model the commissioner selects must accommodate diverse data
and must use each student's test data across grades. Data on
individual teachers generated under the model are personnel data
under section 13.43.
new text end

new text begin (c) The contract under paragraph (b) must be consistent
with the definition of "best value" under section 16C.02,
subdivision 4.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day
following final enactment.
new text end

Sec. 27.

Minnesota Statutes 2004, section 121A.03,
subdivision 1, is amended to read:

Subdivision 1.

Model policy.

The commissioner shall
maintain and make available to school boards a model sexual,
religious, and racial harassment and violence policy. The model
policy shall address the requirements of subdivision 2 new text begin , and may
encourage violence prevention and character development
education programs, consistent with section 120B.225,
subdivision 1, to prevent and reduce policy violations new text end .

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day
following final enactment.
new text end

Sec. 28.

Minnesota Statutes 2004, section 121A.06,
subdivision 2, is amended to read:

Subd. 2.

Reports; content.

deleted text begin By January 1, 1994, the
commissioner, in consultation with the criminal and juvenile
information policy group, shall develop a standardized form to
be used by schools to report incidents involving the use or
possession of a dangerous weapon in school zones. deleted text end new text begin School
districts must electronically report to the commissioner of
education incidents involving the use or possession of a
dangerous weapon in school zones. new text end The form deleted text begin shall deleted text end new text begin must new text end include
the following information:

(1) a description of each incident, including a description
of the dangerous weapon involved in the incident;

(2) where, at what time, and under what circumstances the
incident occurred;

(3) information about the offender, other than the
offender's name, including the offender's age; whether the
offender was a student and, if so, where the offender attended
school; and whether the offender was under school expulsion or
suspension at the time of the incident;

(4) information about the victim other than the victim's
name, if any, including the victim's age; whether the victim was
a student and, if so, where the victim attended school; and if
the victim was not a student, whether the victim was employed at
the school;

(5) the cost of the incident to the school and to the
victim; and

(6) the action taken by the school administration to
respond to the incident.

The commissioner deleted text begin also deleted text end shall deleted text begin develop deleted text end new text begin provide new text end an deleted text begin alternative
deleted text end new text begin electronic new text end reporting format that allows school districts to
provide aggregate data deleted text begin , with an option to use computer
technology to report the data deleted text end .

Sec. 29.

Minnesota Statutes 2004, section 121A.06,
subdivision 3, is amended to read:

Subd. 3.

Reports; filing requirements.

By deleted text begin February 1 and
deleted text end July deleted text begin 1 deleted text end new text begin 31 new text end of each year, each new text begin public new text end school shall report
incidents involving the use or possession of a dangerous weapon
in school zones to the commissioner. The reports must be deleted text begin made
on the standardized forms or using the alternative
format deleted text end new text begin submitted using the electronic reporting system new text end developed
by the commissioner under subdivision 2. The commissioner shall
compile the information it receives from the schools and report
it annually to the commissioner of public safety deleted text begin , the criminal
and juvenile information policy group, deleted text end and the legislature.

Sec. 30.

new text begin [121A.24] NOTICE REQUIREMENTS FOR STUDENT
SURVEYS AND SIMILAR INSTRUMENTS.
new text end

new text begin (a) A school district must obtain prior written informed
consent from a parent or guardian of a minor or dependent child
before administering an academic or nonacademic student survey,
assessment, analysis, evaluation, or similar instrument that
solicits information about the student or the student's family
concerning:
new text end

new text begin (1) political affiliations or beliefs;
new text end

new text begin (2) mental or psychological problems;
new text end

new text begin (3) critical appraisals of another individual with whom a
student has a close family relationship;
new text end

new text begin (4) legally recognized privileged or analogous
relationships, such as those with a lawyer, physician, or
minister;
new text end

new text begin (5) religious practices, affiliations, or beliefs; or
new text end

new text begin (6) income or other income-related information required by
law to determine eligibility to participate in or receive
financial assistance under a program.
new text end

new text begin (b) When asking a parent or guardian to provide informed
written consent, the school district must:
new text end

new text begin (1) make a copy of the instrument readily accessible to the
parent or guardian at a convenient location and reasonable time;
and
new text end

new text begin (2) specifically identify the information in paragraph (a)
that will be solicited through the instrument.
new text end

new text begin The district must request the consent of the parent or guardian
at least 14 days before administering the instrument.
new text end

new text begin (c) A parent or guardian seeking to compel a school
district to comply with this section has available the civil
remedies under section 13.08, subdivision 4, in addition to
other remedies provided by law.
new text end

new text begin (d) A school district may administer an academic or
nonacademic student survey, assessment, analysis, evaluation, or
similar instrument that solicits information about the student
or the student's family concerning sexual behavior or attitudes
or illegal, antisocial, self-incriminating, or demeaning
behavior without obtaining prior written informed consent from
the parent or guardian of a minor or dependent child. The
instrument must not identify the student in any way and the
district must give the student's parent or guardian the
opportunity to refuse to have the instrument administered to the
student.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day
following final enactment.
new text end

Sec. 31.

Minnesota Statutes 2004, section 121A.47,
subdivision 14, is amended to read:

Subd. 14.

Admission or readmission plan.

new text begin (a) new text end A school
administrator shall prepare and enforce an admission or
readmission plan for any pupil who is excluded or expelled from
school. The plan may include measures to improve the pupil's
behavior new text begin , including completing a character education program,
consistent with section 120B.225, subdivision 1, new text end and require
parental involvement in the admission or readmission process,
and may indicate the consequences to the pupil of not improving
the pupil's behavior.

new text begin (b) The definition of suspension under section 121A.41,
subdivision 10, does not apply to a student's dismissal from
school for one school day or less, except as provided under
federal law for a student with a disability. Each suspension
action may include a readmission plan. A readmission plan must
provide, where appropriate, alternative education services,
which must not be used to extend the student's current
suspension period. Consistent with section 125A.091,
subdivision 5, a readmission plan must not obligate a parent or
guardian to provide psychotropic drugs to their student as a
condition of readmission. School officials must not use the
refusal of a parent or guardian to consent to the administration
of psychotropic drugs to their student or to consent to a
psychiatric evaluation, screening or examination of the student
as a ground, by itself, to prohibit the student from attending
class or participating in a school-related activity, or as a
basis of a charge of child abuse, child neglect or medical or
educational neglect.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day
following final enactment.
new text end

Sec. 32.

Minnesota Statutes 2004, section 121A.53, is
amended to read:

121A.53 REPORT TO COMMISSIONER OF EDUCATION.

Subdivision 1.

Exclusions and expulsions.

The school
board deleted text begin shall deleted text end new text begin must new text end report new text begin through the department electronic
reporting system new text end each exclusion or expulsion within 30 days of
the effective date of the action to the commissioner of
education. This report deleted text begin shall deleted text end new text begin must new text end include a statement of
alternative educational services given the pupil and the reason
for, the effective date, and the duration of the exclusion or
expulsion. new text begin The report must also include the student's age,
grade, gender, race, and special education status.
new text end

Subd. 2.

Report.

The school board must include state
student identification numbers of affected pupils on all
dismissal reports required by the department. The department
must report annually to the commissioner summary data on the
number of dismissals by age, grade, gender, race, and special
education status of the affected pupils. new text begin All dismissal reports
must be submitted through the department electronic reporting
system.
new text end

Sec. 33.

Minnesota Statutes 2004, section 121A.55, is
amended to read:

121A.55 POLICIES TO BE ESTABLISHED.

(a) The commissioner of education shall promulgate
guidelines to assist each school board. Each school board shall
establish uniform criteria for dismissal and adopt written
policies and rules to effectuate the purposes of sections
121A.40 to 121A.56. The policies shall emphasize preventing
dismissals through early detection of problems new text begin , using character
development or other programs, consistent with section 120B.225,
subdivision 1, new text end and shall be designed to address students'
inappropriate behavior from recurring. The policies shall
recognize the continuing responsibility of the school for the
education of the pupil during the dismissal period. The
alternative educational services, if the pupil wishes to take
advantage of them, must be adequate to allow the pupil to make
progress towards meeting the graduation standards adopted under
section 120B.02 and help prepare the pupil for readmission.

(b) An area learning center under section 123A.05 may not
prohibit an expelled or excluded pupil from enrolling solely
because a district expelled or excluded the pupil. The board of
the area learning center may use the provisions of the Pupil
Fair Dismissal Act to exclude a pupil or to require an admission
plan.

(c) Each school district shall develop a policy and report
it to the commissioner on the appropriate use of peace officers
and crisis teams to remove students who have an individualized
education plan from school grounds.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day
following final enactment.
new text end

Sec. 34.

new text begin [121A.575] ALTERNATIVES TO PUPIL SUSPENSION.
new text end

new text begin Notwithstanding any law to the contrary and in accordance
with sections 121A.40 to 121A.56, after a school administration
notifies a pupil of the grounds for suspension, the school
administration may, instead of imposing the suspension, do one
or more of the following:
new text end

new text begin (1) strongly encourage a parent or guardian of the pupil to
attend school with the pupil for one day;
new text end

new text begin (2) assign the pupil to attend school on Saturday as
supervised by the principal or the principal's designee; and
new text end

new text begin (3) petition the juvenile court that the student is in need
of services under chapter 260C.
new text end

Sec. 35.

new text begin [121A.655] SCHOOL ATTENDANCE REQUIREMENT;
DRIVING PRIVILEGES.
new text end

new text begin Students enrolled in a school district, charter school, or
alternative education program that does not waive the school
attendance requirement for driving privileges are subject to
section 171.056, among other related sections.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2005.
new text end

Sec. 36.

Minnesota Statutes 2004, section 122A.06,
subdivision 4, is amended to read:

Subd. 4.

deleted text begin comprehensive, scientifically based deleted text end new text begin effective
new text end reading instruction.

deleted text begin "Comprehensive, scientifically based
reading instruction" includes instruction and practice in
phonemic awareness, phonics and other word-recognition skills,
and guided oral reading for beginning readers, as well as
extensive silent reading, vocabulary instruction, instruction in
comprehension, and instruction that fosters understanding and
higher-order thinking for readers of all ages and proficiency
levels. deleted text end new text begin "Effective reading instruction" includes a program or
collection of instructional practices that is based on reliable
evidence showing that when these programs or practices are used,
students can be expected to achieve, at a minimum, satisfactory
reading progress. The program or collection of practices must
include, at a minimum, instruction in five areas of reading:
phonemic awareness, phonics, fluency, vocabulary, and text
comprehension.
new text end

new text begin Effective reading instruction also includes and integrates
instructional strategies for continuously assessing, evaluating,
and communicating the student's reading progress and needs in
order to design and implement ongoing interventions so that
students of all ages and proficiency levels can read and
comprehend text and apply higher level thinking skills.
new text end

Sec. 37.

Minnesota Statutes 2004, section 122A.09,
subdivision 4, is amended to read:

Subd. 4.

License and rules.

(a) The board must adopt
rules to license public school teachers and interns subject to
chapter 14.

(b) The board must adopt rules requiring a person to
successfully complete a skills examination in reading, writing,
and mathematics as a requirement for initial teacher licensure.
Such rules must require college and universities offering a
board-approved teacher preparation program to provide remedial
assistance to persons who did not achieve a qualifying score on
the skills examination, including those for whom English is a
second language.

(c) The board must adopt rules to approve teacher
preparation programs. The board, upon the request of a
postsecondary student preparing for teacher licensure or a
licensed graduate of a teacher preparation program, shall assist
in resolving a dispute between the person and a postsecondary
institution providing a teacher preparation program when the
dispute involves an institution's recommendation for licensure
affecting the person or the person's credentials. At the
board's discretion, assistance may include the application of
chapter 14.

(d) The board must provide the leadership and shall adopt
rules for the redesign of teacher education programs to
implement a research based, results-oriented curriculum that
focuses on the skills teachers need in order to be effective.
The board shall implement new systems of teacher preparation
program evaluation to assure program effectiveness based on
proficiency of graduates in demonstrating attainment of program
outcomes.

(e) The board must adopt rules requiring successful
completion of an examination of general pedagogical knowledge
and examinations of licensure-specific teaching skills. The
rules shall be effective on the dates determined by the board
but not later than September 1, 2001.

(f) The board must adopt rules requiring teacher educators
to work directly with elementary or secondary school teachers in
elementary or secondary schools to obtain periodic exposure to
the elementary or secondary teaching environment.

(g) The board must grant licenses to interns and to
candidates for initial licenses.

(h) The board must design and implement an assessment
system which requires a candidate for an initial license and
first continuing license to demonstrate the abilities necessary
to perform selected, representative teaching tasks at
appropriate levels.

(i) The board must receive recommendations from local
committees as established by the board for the renewal of
teaching licenses.

(j) The board must grant life licenses to those who qualify
according to requirements established by the board, and suspend
or revoke licenses pursuant to sections 122A.20 and 214.10. The
board must not establish any expiration date for application for
life licenses.

(k) The board must adopt rules that require all licensed
teachers who are renewing their continuing license to include in
their renewal requirements further preparation in the areas of
using positive behavior interventions and in accommodating,
modifying, and adapting curricula, materials, and strategies to
appropriately meet the needs of individual students and ensure
adequate progress toward the state's graduation rule.

(l) In adopting rules to license public school teachers who
provide health-related services for disabled children, the board
shall adopt rules consistent with license or registration
requirements of the commissioner of health and the
health-related boards who license personnel who perform similar
services outside of the school.

(m) The board must adopt rules that require all licensed
teachers who are renewing their continuing license to include in
their renewal requirements further reading preparation,
consistent with section 122A.06, subdivision 4. The rules do
not take effect until they are approved by law. Teachers who do
not provide direct instruction including, at least, counselors,
school psychologists, school nurses, school social workers,
audiovisual directors and coordinators, and recreation personnel
are exempt from this section.

(n) The board must adopt rules that require all licensed
teachers who are renewing their continuing license to include in
their renewal requirements further preparation in understanding
the key warning signs of early-onset mental illness in children
and adolescents.

new text begin (o) The board must:
new text end

new text begin (1) adopt rules to license qualified candidates to teach
chemistry, physics, biology, and earth and space science; and
new text end

new text begin (2) license a science teacher qualified to teach in grades
7 through 12 to teach in a new science content area or level in
grades 7 through 12 if the teacher holds a continuing license to
teach science, has a continuing contract under section 122A.40,
subdivision 7, or section 122A.41, subdivision 4, and receives a
qualifying score on an appropriate Praxis II test in a science
subject other than the teacher's currently licensed science
field or level. A qualifying score is the same test score used
for initial licenses to teach science. A science teacher who
seeks licensure in a different science content area or level
under this paragraph is responsible for the actual costs of the
required testing. The board's authority to license science
teachers under this paragraph expires August 1, 2009.
new text end

Sec. 38.

Minnesota Statutes 2004, section 122A.12,
subdivision 2, is amended to read:

Subd. 2.

Terms; compensation; removal; administration new text begin ;
reimbursement new text end .

new text begin (a) new text end Membership terms, removal of members, and
the filling of membership vacancies are as provided in section
214.09. The terms of the initial board members must be
determined by lot as follows:

(1) three members must be appointed for terms that expire
August 1, 2002;

(2) three members must be appointed for terms that expire
August 1, 2003; and

(3) four members must be appointed for terms that expire
August 1, 2004.

Members shall not receive the daily payment under section
214.09, subdivision 3. The public employer of a member shall
not reduce the member's compensation or benefits for the
member's absence from employment when engaging in the business
of the board. The provision of staff, administrative services,
and office space; the review and processing of complaints; the
setting of fees; the selection and duties of an executive
secretary to serve the board; and other provisions relating to
board operations are as provided in chapter 214. Fiscal year
and reporting requirements are as provided in sections 214.07
and 214.08.

new text begin (b) The board may reimburse local school districts for the
cost of a substitute teacher employed when a regular teacher is
providing professional assistance to the state by serving on the
board or on a committee or task force appointed by the board.
new text end

Sec. 39.

Minnesota Statutes 2004, section 122A.18,
subdivision 2a, is amended to read:

Subd. 2a.

Reading strategies.

(a) All colleges and
universities approved by the Board of Teaching to prepare
persons for classroom teacher licensure must include in their
teacher preparation programs deleted text begin reading best practices that enable
classroom teacher licensure candidates to know how to teach
reading, such as phonics or other deleted text end research-based best practices
new text begin in reading, consistent with section 122A.06, subdivision 4, that
enable the licensure candidate to know how to teach reading in
the candidate's content areas new text end .

(b) Board-approved teacher preparation programs for
teachers of elementary education must require instruction in the
application of comprehensive, scientifically based, and balanced
reading instruction programs deleted text begin . deleted text end new text begin that:
new text end

new text begin (1) teach students to read using foundational knowledge,
practices, and strategies consistent with section 122A.06,
subdivision 4, so that all students will achieve continuous
progress in reading; and
new text end

new text begin (2) teach specialized instruction in reading strategies,
interventions, and remediations that enable students of all ages
and proficiency levels to become proficient readers.
new text end

Sec. 40.

Minnesota Statutes 2004, section 122A.41,
subdivision 14, is amended to read:

Subd. 14.

Services terminated by discontinuance or lack
of pupils; preference given.

(a) A teacher whose services are
terminated on account of discontinuance of position or lack of
pupils must receive first consideration for other positions in
the district for which that teacher is qualified. In the event
it becomes necessary to discontinue one or more positions, in
making such discontinuance, teachers must be discontinued in any
department in the inverse order in which they were employed new text begin ,
unless a board and the exclusive representative of teachers in
the district negotiate a plan providing otherwise new text end .

(b) Notwithstanding the provisions of clause (a), a teacher
is not entitled to exercise any seniority when that exercise
results in that teacher being retained by the district in a
field for which the teacher holds only a provisional license, as
defined by the Board of Teaching, unless that exercise of
seniority results in the termination of services, on account of
discontinuance of position or lack of pupils, of another teacher
who also holds a provisional license in the same field. The
provisions of this clause do not apply to vocational education
licenses.

(c) Notwithstanding the provisions of clause (a), a teacher
must not be reinstated to a position in a field in which the
teacher holds only a provisional license, other than a
vocational education license, while another teacher who holds a
nonprovisional license in the same field is available for
reinstatement.

Sec. 41.

Minnesota Statutes 2004, section 122A.414, is
amended to read:

122A.414 ALTERNATIVE TEACHER deleted text begin COMPENSATION deleted text end new text begin PAY new text end .

Subdivision 1.

Restructured pay system.

A restructured
teacher deleted text begin compensation deleted text end new text begin professional pay new text end system is established
under subdivision 2 to provide incentives for teachers to
improve their knowledge and skills and for school districts new text begin and
charter schools new text end to recruit and retain highly qualified teachers,
and to support teachers' roles in improving students'
educational achievement.

Subd. 2.

Alternative teacher professional pay system.

(a) To participate in this program, a school district new text begin , school
site, or charter school new text end must have an educational improvement
plan deleted text begin as deleted text end described in section 122A.413 and an alternative teacher
professional pay system deleted text begin as deleted text end described in paragraph (b).

(b) The alternative teacher professional pay system must:

(1) describe deleted text begin the conditions necessary for deleted text end new text begin how teachers can
achieve new text end career advancement and additional compensation;

(2) new text begin describe how the school district, school site, or
charter school will new text end provide new text begin teachers with new text end career advancement
options deleted text begin for teachers retaining deleted text end new text begin , such as master or mentor teacher
positions that allow teachers to retain new text end primary roles in student
instruction new text begin and facilitate job-embedded professional development
that helps other teachers improve their skills new text end ;

(3) deleted text begin use a professional pay system that replaces the step
and lane salary schedule and is not based on years of service;
deleted text end

deleted text begin (4) encourage teachers' continuous improvement in content
knowledge, pedagogy, and use of best practices; and
deleted text end

deleted text begin (5) implement an objective evaluation system, including
classroom observation, that is aligned with the district's or
the site's educational improvement plan as described in section
122A.413 deleted text end new text begin eliminate the "steps and lanes" salary schedule and
compensate teachers for performing satisfactory service,
achieving professional teaching goals, and undergoing
evaluations under clause (6);
new text end

new text begin (4) compensate teachers for their performance based on, at
a minimum:
new text end

new text begin (i) schoolwide achievement gains under section 120B.35 or
locally selected standardized assessment outcomes, or both;
new text end

new text begin (ii) individual student achievement gains, where available,
under section 120B.35 or locally selected standardized
assessment outcomes, or both; and
new text end

new text begin (iii) results of individual teacher evaluations conducted
by a locally selected and trained evaluation team under clause
(6);
new text end

new text begin (5) provide integrated ongoing site-based professional
development activities that are aligned with student needs under
sections 122A.413 and 122A.60, if enacted, and led during the
school day by trained teacher leaders such as master or mentor
teachers; and
new text end

new text begin (6) provide an objective and comprehensive teacher
evaluation that is aligned with the educational improvement plan
under section 122A.413 and the staff development plan under
section 122A.601, if enacted, and that includes multiple
evaluations of a teacher's performance during the school year
conducted by the locally selected and trained evaluation team
that are based on best practice teaching standards and
instruction and on classroom observations new text end .

Subd. 3.

Report.

Participating districts deleted text begin and deleted text end new text begin , new text end school
sites new text begin , and charter schools new text end must report on the implementation and
effectiveness of the alternative teacher deleted text begin compensation
plan deleted text end new text begin professional pay system new text end , particularly addressing each
requirement under subdivision 2 and make biennial
recommendations by January 1 to their school boards. The school
deleted text begin boards deleted text end new text begin board new text end shall transmit new text begin a copy of the report with new text end a summary
of the findings and recommendations of deleted text begin their deleted text end new text begin the new text end district new text begin ,
school site, or charter school new text end to the commissioner.

Sec. 42.

Minnesota Statutes 2004, section 122A.415,
subdivision 1, is amended to read:

Subdivision 1.

deleted text begin aid deleted text end new text begin revenue new text end amount.

(a) A school district
new text begin , school site, or charter school new text end that meets the conditions of
section 122A.414 and submits an application approved by the
commissioner is eligible for alternative compensation deleted text begin aid
deleted text end new text begin revenue new text end .

new text begin (b) For school district applications, new text end the commissioner must
consider only new text begin those new text end applications new text begin to participate that are
new text end submitted jointly by a school district and the exclusive
representative of the teachers deleted text begin for participation in the
program deleted text end . The application must contain a formally adopted
collective bargaining agreement, memorandum of understanding, or
other binding agreement that new text begin :
new text end

new text begin (1) new text end implements an alternative teacher professional pay
system consistent with section 122A.414 new text begin ;
new text end

new text begin (2) complies with the Public Employment Labor Relations Act
under chapter 179A, except that notwithstanding section 179A.20,
subdivision 3, a district may enter into a contract for a term
of between two and four years; new text end and

new text begin (3) new text end includes all teachers in a district deleted text begin , deleted text end new text begin or new text end all teachers at
a school site deleted text begin , or at least 25 percent of the teachers in a
district. The commissioner, in approving applications, may give
preference to applications involving entire districts or sites
or to applications that align measures of teacher performance
with student academic achievement and progress under section
120B.35, subdivision 1 deleted text end .

Alternative new text begin teacher new text end compensation deleted text begin aid deleted text end new text begin revenue new text end for a
qualifying school district deleted text begin , deleted text end new text begin or new text end site deleted text begin , or portion of a district or
school site is as follows:
deleted text end

deleted text begin (1) for a school district deleted text end in which the school board and the
exclusive representative of the teachers agree to place all
teachers in the district or at the site on the
alternative deleted text begin compensation schedule, alternative compensation aid
deleted text end new text begin teacher professional pay system new text end equals deleted text begin $150 deleted text end new text begin $260 new text end times the
district's or the site's number of pupils enrolled on October 1
of the previous fiscal year deleted text begin ; or
deleted text end

deleted text begin (2) for a district in which the school board and the
exclusive representative of the teachers agree that at least 25
percent of the district's licensed teachers will be paid on the
alternative compensation schedule, alternative compensation aid
equals $150 times the percentage of participating teachers times
the district's number of pupils enrolled as of October 1 of the
previous fiscal year deleted text end .

new text begin (c) For charter school applications, the board of directors
of a charter school that satisfies the conditions under section
122A.414 must submit to the commissioner an application that
contains:
new text end

new text begin (1) an agreement to implement an alternative teacher
professional pay system under section 122A.414;
new text end

new text begin (2) a resolution by the charter school board of directors
adopting the agreement; and
new text end

new text begin (3) the record of a formal vote by the teachers employed at
the charter school indicating that at least 70 percent of all
teachers agree to implement the alternative teacher professional
pay system, unless the charter school submits an alternative
teacher professional pay system under section 122A.414 before
the first year of operation.
new text end

new text begin Alternative compensation revenue for a qualifying charter
school must be calculated under section 126C.10, subdivision 34,
paragraphs (a) and (b).
new text end

deleted text begin (b) deleted text end new text begin (d) The revenue is available only to school districts,
school sites, and charter schools that implement an alternative
teacher professional pay system before the school year begins.
new text end

Sec. 43.

Minnesota Statutes 2004, section 122A.415,
subdivision 3, is amended to read:

Subd. 3.

deleted text begin aid deleted text end new text begin revenue new text end timing.

(a) Districts deleted text begin or deleted text end new text begin , school
new text end sites new text begin , or charter schools new text end with approved applications must
receive alternative compensation deleted text begin aid deleted text end new text begin revenue new text end for each school
year that the district deleted text begin or deleted text end new text begin , school new text end site new text begin , or charter school
new text end participates in the program deleted text begin as described in deleted text end new text begin under new text end this
subdivision. Districts deleted text begin or deleted text end new text begin , school new text end sites new text begin , or charter schools
new text end with applications deleted text begin received deleted text end new text begin approved new text end by the commissioner deleted text begin before
June 1 of the first year of a two-year contract deleted text end shall receive
alternative compensation deleted text begin aid deleted text end new text begin revenue new text end for deleted text begin both deleted text end new text begin school new text end years deleted text begin of
the contract. Districts or sites with applications received by
the commissioner after June 1 of the first year of a two-year
contract shall receive alternative compensation aid only for the
second year of the contract deleted text end new text begin in which the alternative teacher
professional pay system is implemented for the full school
year new text end . new text begin For fiscal year 2007 and later, new text end a qualifying district deleted text begin or deleted text end new text begin ,
school new text end site new text begin , or charter school new text end that received alternative
compensation aid for the previous fiscal year must receive at
least an amount new text begin of alternative teacher compensation revenue
new text end equal to the lesser of the amount it received for the previous
fiscal year or deleted text begin its proportionate share of the previous year's
appropriation deleted text end new text begin the amount it qualifies for under subdivision 1
for the current fiscal year new text end if the district deleted text begin or deleted text end new text begin , school new text end site new text begin , or
charter school new text end submits a timely application and the commissioner
determines that the district deleted text begin or deleted text end new text begin , school new text end site new text begin , or charter school
new text end continues to implement an alternative teacher professional pay
system, consistent with its application under this section. deleted text begin The
commissioner must approve initial applications for school
districts qualifying under subdivision 1, paragraph (b), clause
(1), by January 15 of each year. If any money remains, the
commissioner must approve aid amounts for school districts
qualifying under subdivision 1, paragraph (b), clause (2), by
February 15 of each year.
deleted text end

(b) The commissioner new text begin may sort applications by geographic
region and new text end shall new text begin approve applications that comply with sections
122A.414, subdivision 2, paragraph (b), and 122A.415,
subdivision 1, in the order in which they are received from each
region, new text end select applicants that qualify for this program, notify
school districts deleted text begin and deleted text end new text begin , new text end school sites new text begin , and charter schools new text end about
the program, develop and disseminate application materials, and
carry out other activities needed to implement this section.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2005.
new text end

Sec. 44.

Minnesota Statutes 2004, section 123A.06,
subdivision 1, is amended to read:

Subdivision 1.

Program focus.

(a) The programs and
services of a center must focus on academic and learning skills,
applied learning opportunities, trade and vocational skills,
work-based learning opportunities, work experience, youth
service to the community, transition services, and English
language and literacy programs for children whose primary
language is a language other than English new text begin , and may focus on
character development, consistent with section 120B.225,
subdivision 1 new text end . Applied learning, work-based learning, and
service learning may best be developed in collaboration with a
local education and transitions partnership, culturally based
organizations, mutual assistance associations, or other
community resources. In addition to offering programs, the
center shall coordinate the use of other available educational
services, special education services, social services, health
services, and postsecondary institutions in the community and
services area.

(b) Consistent with the requirements of sections 121A.40 to
121A.56, a school district may provide an alternative education
program for a student who is within the compulsory attendance
age under section 120A.20, and who is involved in severe or
repeated disciplinary action.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day
following final enactment.
new text end

Sec. 45.

new text begin [123A.10] EDUCATION ADMINISTRATIVE DISTRICTS.
new text end

new text begin Subdivision 1. new text end

new text begin Administrative efficiency. new text end

new text begin An education
administrative district is intended to increase the efficiency
of administrative services for kindergarten through grade 12
public schools by combining the administrative functions of
multiple school districts while preserving independent school
district control of individual school sites.
new text end

new text begin Subd. 2. new text end

new text begin Agreement to establish education administrative
district. new text end

new text begin School boards that meet the requirements of
subdivision 3 may enter into a written agreement to establish an
education administrative district. The agreement must include
methods to improve the efficient delivery of administrative
services. A majority of the full board of each member district
that is a party to the agreement must adopt the agreement and
any subsequent modifications of the agreement.
new text end

new text begin Subd. 3. new text end

new text begin Commissioner review and comment. new text end

new text begin Before
entering into an agreement to establish an education
administrative district, the school boards of the proposed
member districts jointly must submit the proposed agreement to
the commissioner for review and comment. The commissioner must
submit a review and comment on the educational and economic
advisability of the proposed agreement to the affected school
boards within 60 days of receiving the proposal. If the
commissioner submits a negative review and comment, the
districts do not qualify for levy authority under section
123A.12, subdivision 5.
new text end

new text begin Subd. 4. new text end

new text begin Notice and public hearing on proposed
agreement. new text end

new text begin Before entering into an agreement to establish an
education administrative district, the school boards of the
proposed member districts each must publish the commissioner's
review and comment and a summary of the proposed agreement and
its anticipated effect upon the district at least once in a
newspaper of general circulation in the district. The board
must conduct a public hearing on the proposed agreement not more
than ten days after the notice is published and at least 30 days
before entering into the agreement.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for the
2005-2006 school year and later.
new text end

Sec. 46.

new text begin [123A.11] EDUCATION ADMINISTRATIVE DISTRICT
BOARD.
new text end

new text begin Subdivision 1. new text end

new text begin School district representation. new text end

new text begin The
education administrative district board is composed of at least
one representative appointed by the school board of each member
district. Each representative must be a member of the
appointing school board. Each representative serves at the
pleasure of the appointing board and may be recalled by a
majority vote of the appointing board. Each representative
serves for the term specified in the agreement. The board must
select its officers from among its members and determine the
officers' terms. The board must adopt bylaws for conducting
business. The board may conduct public meetings using
interactive television if it complies with chapter 13 in each
location where board members are present.
new text end

new text begin Subd. 2. new text end

new text begin Providing administrative services. new text end

new text begin An education
administrative district board must implement the agreement for
efficiently delivering needed administrative services under
section 123A.12 to the education administrative district.
new text end

new text begin Subd. 3. new text end

new text begin Personnel. new text end

new text begin The board may employ personnel
needed to provide administrative services to the education
administrative district. Personnel employed by the education
administrative district are eligible to participate in
retirement programs. Notwithstanding section 123B.143,
subdivision 1, a district member of an education administrative
district must contract with the education administrative
district to obtain superintendent services. The person
providing superintendent services need not be an employee of the
education administrative district or a member district at the
time the person contracts to provide superintendent services.
new text end

new text begin Subd. 4. new text end

new text begin Contracts. new text end

new text begin The education administrative
district board may contract with school districts and other
public and private agencies to provide needed administrative
services in the education administrative district.
new text end

new text begin Subd. 5. new text end

new text begin General law. new text end

new text begin The education administrative
district board is governed by section 471.59 unless specifically
provided otherwise under sections 123A.10 to 123A.12.
new text end

new text begin Subd. 6. new text end

new text begin Annual report. new text end

new text begin After each of its first five
years of operation, the education administrative district board
must submit an annual report to its member districts and the
commissioner about the education administrative district's
activities, including an analysis of its administrative costs
and efficiencies.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for the
2005-2006 school year and later.
new text end

Sec. 47.

new text begin [123A.12] EDUCATION ADMINISTRATIVE DISTRICT
AGREEMENT.
new text end

new text begin Subdivision 1. new text end

new text begin Implementation; review. new text end

new text begin An education
administrative district board must implement the agreement of
its member districts under section 123A.10, subdivision 2, to
provide efficient administrative services to the education
administrative district. The board must review the agreement
annually and propose needed modifications to its member
districts.
new text end

new text begin Subd. 2. new text end

new text begin Administrative services. new text end

new text begin (a) Consistent with
section 123B.143, subdivision 1, the agreement must allow the
education administrative district board within 24 months of
implementing the agreement to select one superintendent to serve
the education administrative district for a specified term.
new text end

new text begin (b) The agreement must specify other administrative
efficiencies the education administrative district intends to
provide to member districts, including, among other
efficiencies, administrative functions related to, business
management, human resources, payroll, food service, buildings
and ground maintenance, pupil transportation, technology
coordination, curriculum coordination, community education,
nursing services, student records, student administrative
services, and school building administration. All
administrative efficiencies implemented by the education
administrative district under the agreement in this section must
be in compliance with employee collective bargaining agreements
in effect in each member school district.
new text end

new text begin Subd. 3. new text end

new text begin Timing and duration. new text end

new text begin (a) The initial agreement
must contain a timeline for implementing the agreement.
new text end

new text begin (b) The initial agreement must be for a period of at least
three years. After completing the first two years, the
agreement may be extended by a majority vote of the full board
of each member district.
new text end

new text begin Subd. 4. new text end

new text begin Finances. new text end

new text begin The initial agreement must:
new text end

new text begin (1) include a three-year budget projection comparing
existing administrative services and costs with proposed
administrative services and costs for each year;
new text end

new text begin (2) specify the retirement and severance incentives,
consistent with section 123A.48, subdivision 23, that may be
offered to licensed and nonlicensed staff, and how these costs
will be apportioned among member districts;
new text end

new text begin (3) specify other start-up costs for the education
administrative district and how these costs will be apportioned
among member districts;
new text end

new text begin (4) specify the estimated amounts each member district will
levy under subdivision 5 for the specified costs in clauses (2)
and (3); and
new text end

new text begin (5) specify an equitable distribution formula for the
education administrative district board to assess and certify a
proportionate share of expenses to member districts, which must
remit their assessment to the education administrative district
board within 30 days of receiving the certified assessment.
new text end

new text begin Subd. 5. new text end

new text begin Levy. new text end

new text begin A school district that is a member of an
education administrative district may levy an amount equal to
the member district's share of costs approved by the
commissioner for retirement and severance incentives and other
start-up costs included in the initial agreement under
subdivision 4, clauses (2) and (3), over a term of not more than
36 months.
new text end

new text begin Subd. 6. new text end

new text begin Reports to education department. new text end

new text begin Member school
districts jointly may submit reports and provide required
information to the department. The joint reports clearly must
attribute information, including expenditures for the education
administrative district, to individual member districts.
new text end

new text begin Subd. 7. new text end

new text begin Additional and withdrawing districts. new text end

new text begin (a) Upon
approval by a majority vote of a district school board and the
education administrative district board, an adjoining school
district may become a member of an education administrative
district and is governed by this section and the education
administrative district agreement in effect. A noncontiguous
district may become a member with the commissioner's approval
based on the criteria under section 123A.10, subdivision 3. A
new member added to an education administrative district may
levy for approved retirement and severance incentive costs under
subdivision 5.
new text end

new text begin (b) After three consecutive years of membership, a member
district, by majority vote of its full board and after complying
with the applicable terms in the education administrative
district agreement, may withdraw from the education
administrative district and the agreement at the end of the
subsequent fiscal year.
new text end

new text begin Subd. 8. new text end

new text begin Dissolution. new text end

new text begin After the first three years of the
education administrative district, the boards of each member
district may agree to dissolve the education administrative
district at the end of any fiscal year or at an earlier,
mutually agreeable time. Member districts must dissolve the
education administrative district according to the applicable
provisions in the agreement establishing the education
administrative district. The dissolution must not affect the
continuing liability of any district formerly a member of the
education administrative district for continuing obligations,
including employment benefits.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for the
2005-2006 school year and later.
new text end

Sec. 48.

Minnesota Statutes 2004, section 123A.24,
subdivision 2, is amended to read:

Subd. 2.

Cooperative unit defined.

For the purposes of
this section, a cooperative unit is:

(1) an education district organized under sections 123A.15
to 123A.19;

(2) a cooperative vocational center organized under section
123A.22;

(3) an intermediate district organized under chapter 136D;

(4) new text begin an education administrative district organized under
sections 123A.10 to 123A.12;
new text end

new text begin (5) new text end a service cooperative organized under section 123A.21;
or

deleted text begin (5) deleted text end new text begin (6) new text end a regional management information center organized
under section 123A.23 or as a joint powers district according to
section 471.59.

Sec. 49.

Minnesota Statutes 2004, section 123B.02, is
amended by adding a subdivision to read:

new text begin Subd. 22. new text end

new text begin Reward. new text end

new text begin A school board, after formally
adopting a policy consistent with this subdivision, may offer a
reward to a person who provides accurate and reliable
information leading to the conviction of a person who has
committed, attempted to commit, or conspired to commit a crime
against students or school employees, volunteers or board
members as a result of their affiliation with the school
district, or against school district property.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day
following final enactment.
new text end

Sec. 50.

new text begin [123B.022] PROHIBITING SCHOOL EMPLOYEES FROM
USING PUBLIC RESOURCES FOR ADVOCACY; ENDORSING TIMELY AND
CURRENT FACTUAL INFORMATION.
new text end

new text begin (a) A school board must adopt and implement a districtwide
policy that prohibits district employees from using district
funds or other publicly funded district resources, including
time, materials, equipment, facilities, and communication
technologies, among other resources, to advocate for electing or
defeating a candidate, passing or defeating a ballot question,
or passing or defeating pending legislation. The policy must
apply when the employee performs the duties assigned to the
employee under the employee's employment contract with the
district, and includes the periods when the employee represents
the district in an official capacity, among other duties. The
policy must not apply when an employee disseminates factual
information consistent with the employee's contractual duties.
new text end

new text begin (b) The school board must provide the district's electorate
with timely factual information about a pending ballot question.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2006.
new text end

Sec. 51.

new text begin [123B.042] SCHOOL SITE GOVERNANCE PROGRAM.
new text end

new text begin Subdivision 1. new text end

new text begin Establishment. new text end

new text begin A school site governance
program is established to provide schools with more authority
and flexibility to teach and provide services to students at the
school site. Nothing in this section affects a school
district's ability to enter into a school site decision-making
agreement under section 123B.04.
new text end

new text begin Subd. 2. new text end

new text begin Site decision-making team. new text end

new text begin (a) To participate
in the program, a school must form a site decision-making team
that includes a school principal or other persons having general
control and supervision of the school, at least one teacher in
the school, one noninstructional staff person in the school, and
at least one parent of a student enrolled in the school or other
community member. By October 1 of the school year before
participating in the program, the school site decision-making
team must:
new text end

new text begin (1) be approved by a 60 percent vote of employees in the
school;
new text end

new text begin (2) adopt a policy describing how it will delegate
authority and responsibilities among its members; and
new text end

new text begin (3) notify the school board of its intent to participate in
the program.
new text end

new text begin (b) After notifying the school board under paragraph (a),
clause (3), the school site decision-making team shall publish a
notice in a newspaper of general circulation in the district of
its intent to participate in the program and the date it will
hold a public hearing about its intended participation. In
addition to holding the public hearing, the decision-making
team, for a period of 30 days, must also solicit parent and
community input regarding its intended participation.
new text end

new text begin (c) By January 15, the decision-making team shall
demonstrate to the school board how the team's plan responds to
public comment.
new text end

new text begin Subd. 3. new text end

new text begin Responsibilities; revenue. new text end

new text begin (a) A school site
decision-making team participating in this program:
new text end

new text begin (1) has the control and responsibilities of the school
board for operating and managing the site after the agreement
under paragraph (b) is signed, including such responsibilities
as instructional practices, personnel selection from within the
district, and staffing assignments for the school; and
new text end

new text begin (2) retains control of the revenue and determines its use
as necessary to operate the school for the school years it
participates in the program under this section.
new text end

new text begin (b) By January 15 of the school year before participating
in the program, the school site decision-making team must enter
into a written agreement with the local school board describing
the control and responsibilities of the decision-making team and
of the school board. Revenue for a fiscal year received or
receivable by the district and that the district would expend
for the particular school site participating in the program is
allocated to that school site. All other district revenue not
reserved for other purposes must be proportionately allocated to
the site based on the site's pupil count. The agreement must
include provisions describing how the decision-making team and
school board will resolve disputes over assigned authority and
responsibilities. The school board members must vote whether to
authorize the agreement under this paragraph according to
section 123B.09, subdivision 6. The decision of the school
board is final. If the school board does not authorize the
agreement, the school board must publish its decision and
reasons in a newspaper of general circulation in the district.
new text end

new text begin (c) The district must maintain an account for each school
site participating in the program.
new text end

new text begin (d) The school site decision-making team must comply with
section 13D.04, subdivision 1.
new text end

new text begin Subd. 4. new text end

new text begin Employees. new text end

new text begin The employees of the school site
remain employees of the school district for salary, benefits,
seniority, retirement, and other personnel issues. Consistent
with current law and the collective bargaining agreement in
effect, the school site decision-making team selects employees
from within the district into licensed and nonlicensed positions
at the school site, including the position of principal or other
person having general control and supervision of the school.
When negotiating a new contract under chapter 179A, an exclusive
representative and school board must provide for the employees
of a school site participating in the program under this section.
new text end

new text begin Subd. 5. new text end

new text begin Performance agreements. new text end

new text begin By March 15 of the
school year before participating in the program, the school site
decision-making team shall enter into a performance agreement
with the school board. The agreement shall include:
new text end

new text begin (1) the previous year's baseline information at the site
regarding student achievement based on:
new text end

new text begin (i) aggregated and disaggregated statewide testing data;
new text end

new text begin (ii) other nationally normed standardized tests;
new text end

new text begin (iii) student attendance; and
new text end

new text begin (iv) dropout rates and graduation rates, where applicable;
new text end

new text begin (2) the expected levels of improvement in selected areas of
student performance during the next year;
new text end

new text begin (3) how student performance will be measured, including
assessment procedures required by law and rule;
new text end

new text begin (4) status of the school's revenues and expenditures;
new text end

new text begin (5) other performance expectations and measures agreed upon
by the school site and school board;
new text end

new text begin (6) the frequency of reporting by the school site to the
school board; and
new text end

new text begin (7) how the performance results will be made available to
parents and the public.
new text end

new text begin The term of an agreement shall be for no more than two
years.
new text end

new text begin The performance agreement must include provisions
describing how the school board and school site decision-making
team will resolve disputes over the school's compliance with
provisions of the agreement.
new text end

new text begin If the school site decision-making team and school board
cannot agree on the provisions of a performance agreement as
required under this subdivision, either party may request
assistance from the commissioner of education. The commissioner
shall provide assistance to the parties to ensure they reach an
agreement.
new text end

new text begin Subd. 6. new text end

new text begin Termination of site-based program authority. new text end

new text begin If
a school site fails to meet the agreed upon expectations as
specified in the performance agreement with the school board for
two consecutive school years, its authority to participate in
the program is terminated.
new text end

new text begin School sites that have had their authority to participate
in this program terminated under this subdivision may not
participate in this program for three years after termination.
new text end

new text begin Subd. 7. new text end

new text begin Reports. new text end

new text begin A school site decision-making team
shall, and its respective school board may, make an annual
report to the commissioner of education by September 1. The
reports shall be consistent with the requirements of section
120B.11, subdivision 5, paragraph (a).
new text end

new text begin Subd. 8. new text end [COMMISSIONER'S DUTY.] new text begin The commissioner of
education shall evaluate the effectiveness of the program by
January 1, 2010.
new text end

Sec. 52.

Minnesota Statutes 2004, section 123B.09,
subdivision 8, is amended to read:

Subd. 8.

Duties.

The board must superintend and manage
the schools of the district; adopt rules for their organization,
government, and instruction; keep registers; and prescribe
textbooks and courses of study. The board may enter into an
agreement with a postsecondary institution for secondary or
postsecondary nonsectarian courses to be taught at a secondary
school, nonsectarian postsecondary institution, or another
location. new text begin The board must not enter into an agreement that
limits its authority to assign and reassign teachers or
administrators to the schools in which the teachers will teach
or the administrators will administer.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for agreements
entered into on or after July 1, 2005.
new text end

Sec. 53.

Minnesota Statutes 2004, section 123B.143,
subdivision 1, is amended to read:

Subdivision 1.

Contract; duties.

All districts
maintaining a classified secondary school must employ a
superintendent who shall be an ex officio nonvoting member of
the school board. The authority for selection and employment of
a superintendent must be vested in the board in all cases. An
individual employed by a board as a superintendent shall have an
initial employment contract for a period of time no longer than
three years from the date of employment. Any subsequent
employment contract must not exceed a period of three years. A
board, at its discretion, may or may not renew an employment
contract. A board must not, by action or inaction, extend the
duration of an existing employment contract. Beginning 365 days
prior to the expiration date of an existing employment contract,
a board may negotiate and enter into a subsequent employment
contract to take effect upon the expiration of the existing
contract. A subsequent contract must be contingent upon the
employee completing the terms of an existing contract. If a
contract between a board and a superintendent is terminated
prior to the date specified in the contract, the board may not
enter into another superintendent contract with that same
individual that has a term that extends beyond the date
specified in the terminated contract. A board may terminate a
superintendent during the term of an employment contract for any
of the grounds specified in section 122A.40, subdivision 9 or 13.
A superintendent shall not rely upon an employment contract with
a board to assert any other continuing contract rights in the
position of superintendent under section 122A.40.
Notwithstanding the provisions of sections 122A.40, subdivision
10 or 11, 123A.32, 123A.75, or any other law to the contrary, no
individual shall have a right to employment as a superintendent
based on order of employment in any district. If two or more
districts enter into an agreement for the purchase or sharing of
the services of a superintendent, the contracting districts have
the absolute right to select one of the individuals employed to
serve as superintendent in one of the contracting districts and
no individual has a right to employment as the superintendent to
provide all or part of the services based on order of employment
in a contracting district. The superintendent of a district
shall perform the following:

(1) visit and supervise the schools in the district, report
and make recommendations about their condition when advisable or
on request by the board;

(2) recommend to the board employment and dismissal of
teachers;

(3) superintend school grading practices and examinations
for promotions;

(4) make reports required by the commissioner; new text begin and
new text end

(5) deleted text begin by January 10, submit an annual report to the
commissioner in a manner prescribed by the commissioner, in
consultation with school districts, identifying the expenditures
that the district requires to ensure an 80 percent student
passage rate on the basic standards test taken in the eighth
grade, identifying the highest student passage rate the district
expects it will be able to attain on the basic standards test by
grade 12, the amount of expenditures that the district requires
to attain the targeted student passage rate, and how much the
district is cross-subsidizing programs with special education,
basic skills, and general education revenue; and
deleted text end

deleted text begin (6) deleted text end perform other duties prescribed by the board.

Sec. 54.

Minnesota Statutes 2004, section 123B.36,
subdivision 1, is amended to read:

Subdivision 1.

School boards may require fees.

(a) For
purposes of this subdivision, "home school" means a home school
as defined in sections 120A.22 and 120A.24 with five or fewer
students receiving instruction.

(b) A school board is authorized to require payment of fees
in the following areas:

(1) in any program where the resultant product, in excess
of minimum requirements and at the pupil's option, becomes the
personal property of the pupil;

(2) admission fees or charges for extracurricular
activities, where attendance is optional and where the admission
fees or charges a student must pay to attend or participate in
an extracurricular activity is the same for all students,
regardless of whether the student is enrolled in a public or a
home school;

(3) a security deposit for the return of materials,
supplies, or equipment;

(4) personal physical education and athletic equipment and
apparel, although any pupil may personally provide it if it
meets reasonable requirements and standards relating to health
and safety established by the board;

(5) items of personal use or products that a student has an
option to purchase such as student publications, class rings,
annuals, and graduation announcements;

(6) fees specifically permitted by any other statute,
including but not limited to section 171.05, subdivision 2;
provided (i) driver education fees do not exceed the actual cost
to the school and school district of providing driver education,
and (ii) the driver education courses are open to enrollment to
persons between the ages of 15 and 18 who reside or attend
school in the school district;

(7) field trips considered supplementary to a district
educational program;

(8) any authorized voluntary student health and accident
benefit plan;

(9) for the use of musical instruments owned or rented by
the district, a reasonable rental fee not to exceed either the
rental cost to the district or the annual depreciation plus the
actual annual maintenance cost for each instrument;

(10) transportation of pupils to and from extracurricular
activities conducted at locations other than school, where
attendance is optional new text begin , and transportation of charter school
students participating in extracurricular activities in their
resident district under section 123B.49, subdivision 4,
paragraph (a), which must be charged to the charter school new text end ;

(11) transportation to and from school of pupils living
within two miles from school and all other transportation
services not required by law. If a district charges fees for
transportation of pupils, it must establish guidelines for that
transportation to ensure that no pupil is denied transportation
solely because of inability to pay;

(12) motorcycle classroom education courses conducted
outside of regular school hours; provided the charge must not
exceed the actual cost of these courses to the school district;

(13) transportation to and from postsecondary institutions
for pupils enrolled under the postsecondary enrollment options
program under section 123B.88, subdivision 22. Fees collected
for this service must be reasonable and must be used to reduce
the cost of operating the route. Families who qualify for
mileage reimbursement under section 124D.09, subdivision 22, may
use their state mileage reimbursement to pay this fee. If no
fee is charged, districts must allocate costs based on the
number of pupils riding the route.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for the
2005-2006 school year and later.
new text end

Sec. 55.

Minnesota Statutes 2004, section 123B.49,
subdivision 4, is amended to read:

Subd. 4.

Board control of extracurricular activities.

(a) The board may take charge of and control all extracurricular
activities of the teachers and children of the public schools in
the district. Extracurricular activities means all direct and
personal services for pupils for their enjoyment that are
managed and operated under the guidance of an adult or staff
member. The board shall allow all resident pupils receiving
instruction in a home school as defined in section 123B.36,
subdivision 1, paragraph (a), new text begin and all resident pupils receiving
instruction in a charter school as defined in section 124D.10 new text end to
be eligible to fully participate in extracurricular activities
on the same basis as public school students deleted text begin . deleted text end new text begin enrolled in the
district's schools. A charter school student must give the
enrolling charter school and the resident school district at
least a 30-day notice of the student's intent to participate in
an extracurricular activity in the resident district. Before a
charter school student begins participating in an
extracurricular activity in the resident district, the charter
school must agree in writing to pay the direct and indirect
costs attributable to that student that the district may charge
to the charter school under paragraph (f). A charter school
student is not eligible to participate in an extracurricular
activity in the resident district if that extracurricular
activity is offered by the enrolling charter school or the
extracurricular activity is not controlled by the high school
league under chapter 128C. Charter school students
participating in extracurricular activities must meet the
academic and student conduct requirements of the resident
district. The charter school must:
new text end

new text begin (1) collect the same information that a district collects
on a student's eligibility to participate in an extracurricular
activity;
new text end

new text begin (2) transmit that information to the district at least ten
days before a student begins to participate in the
extracurricular activity; and
new text end

new text begin (3) immediately transmit to the district any additional
information affecting the student's eligibility.
new text end

(b) Extracurricular activities have all of the following
characteristics:

(1) they are not offered for school credit nor required for
graduation;

(2) they are generally conducted outside school hours, or
if partly during school hours, at times agreed by the
participants, and approved by school authorities;

(3) the content of the activities is determined primarily
by the pupil participants under the guidance of a staff member
or other adult.

(c) If the board does not take charge of and control
extracurricular activities, these activities shall be
self-sustaining with all expenses, except direct salary costs
and indirect costs of the use of school facilities, met by dues,
admissions, or other student fund-raising events. The general
fund must reflect only those salaries directly related to and
readily identified with the activity and paid by public funds.
Other revenues and expenditures for extracurricular activities
must be recorded according to the "Manual deleted text begin of Instruction deleted text end for
deleted text begin Uniform Student Activities deleted text end new text begin Activity Fund new text end Accounting deleted text begin for
Minnesota School Districts and Area Vocational-Technical
Colleges deleted text end ." Extracurricular activities not under board control
must have an annual financial audit and must also be audited
annually for compliance with this section.

(d) If the board takes charge of and controls
extracurricular activities, any or all costs of these activities
may be provided from school revenues and all revenues and
expenditures for these activities shall be recorded in the same
manner as other revenues and expenditures of the district.

(e) If the board takes charge of and controls
extracurricular activities, the teachers or pupils in the
district must not participate in such activity, nor shall the
school name or any allied name be used in connection therewith,
except by consent and direction of the board.

new text begin (f) School districts may charge charter schools their
proportional share of the direct and indirect costs of the
extracurricular activities that are not covered by student fees
under section 123B.36, subdivision 1, ticket revenues,
fund-raising efforts, sponsorships, or other income generated
for those activities for which the charter school is charged. A
district may charge charter school students the same fees it
charges enrolled students to participate in an extracurricular
activity. All charges to a charter school and charter school
students must be paid when the charter school students are
selected to participate in the activity. A district is not
required to provide transportation from the charter school to
the resident district for a charter school student who
participates in an extracurricular activity in the resident
district.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for the
2005-2006 school year and later.
new text end

Sec. 56.

Minnesota Statutes 2004, section 124D.095,
subdivision 8, is amended to read:

Subd. 8.

Financial arrangements.

(a) For a student
enrolled in an on-line learning course, the department must
calculate average daily membership and make payments according
to this subdivision.

(b) The initial on-line learning average daily membership
equals 1/12 for each semester course or a proportionate amount
for courses of different lengths. The adjusted on-line learning
average daily membership equals the initial on-line learning
average daily membership times .88.

(c) No on-line learning average daily membership shall be
generated if: (1) the student does not complete the on-line
learning course, or (2) the student is enrolled in on-line
learning provided by the enrolling district deleted text begin and the student was
enrolled in a Minnesota public school for the school year before
the school year in which the student first enrolled in on-line
learning deleted text end .

(d) On-line learning average daily membership under this
subdivision for a student currently enrolled in a Minnesota
public school deleted text begin and who was enrolled in a Minnesota public school
for the school year before the school year in which the student
first enrolled in on-line learning deleted text end shall be used only for
computing average daily membership according to section 126C.05,
subdivision 19, paragraph (a), clause (ii), and for computing
on-line learning aid according to section deleted text begin 126C.24 deleted text end new text begin 124D.096 new text end .

deleted text begin (e) On-line learning average daily membership under this
subdivision for students not included in paragraph (c) or (d)
shall be used only for computing average daily membership
according to section 126C.05, subdivision 19, paragraph (a),
clause (ii), and for computing payments under paragraphs (f) and
(g).
deleted text end

deleted text begin (f) Subject to the limitations in this subdivision, the
department must pay an on-line learning provider an amount equal
to the product of the adjusted on-line learning average daily
membership for students under paragraph (e) times the student
grade level weighting under section 126C.05, subdivision 1,
times the formula allowance.
deleted text end

deleted text begin (g) The department must pay each on-line learning provider
100 percent of the amount in paragraph (f) within 45 days of
receiving final enrollment and course completion information
each quarter or semester.
deleted text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for revenue for
fiscal year 2006.
new text end

Sec. 57.

Minnesota Statutes 2004, section 124D.10,
subdivision 3, is amended to read:

Subd. 3.

Sponsor.

(a) A school board; intermediate
school district school board; education district organized under
sections 123A.15 to 123A.19; charitable organization under
section 501(c)(3) of the Internal Revenue Code of 1986 that is a
member of the Minnesota Council of Nonprofits or the Minnesota
Council on Foundations, registered with the attorney general's
office, and reports an end-of-year fund balance of at least
$2,000,000; Minnesota private college that grants two- or
four-year degrees and is registered with the Higher Education
Services Office under chapter 136A; community college, state
university, or technical college, governed by the Board of
Trustees of the Minnesota State Colleges and Universities; or
the University of Minnesota may sponsor one or more charter
schools.

(b) A nonprofit corporation subject to chapter 317A,
described in section 317A.905, and exempt from federal income
tax under section 501(c)(6) of the Internal Revenue Code of
1986, may sponsor one or more charter schools if the charter
school has operated for at least three years under a different
sponsor and if the nonprofit corporation has existed for at
least 25 years.

new text begin (c) The commissioner of education may approve up to five
charitable organizations under section 501(c)(3) of the Internal
Revenue Code of 1986 that sponsor charter schools as their sole
charitable purpose. Eligible charitable organizations
interested in being approved as a sponsor under this paragraph
must submit a proposal to the commissioner that includes:
new text end

new text begin (1) the articles, bylaws, and initial membership of the
charitable organization's board of directors;
new text end

new text begin (2) financial information consistent with section 309.53,
subdivision 3;
new text end

new text begin (3) a description of how the charitable organization plans
to realize its principle charitable purpose; and
new text end

new text begin (4) other information requested by the commissioner.
new text end

new text begin A charitable organization that is approved as a sponsor
under this paragraph annually must report to the commissioner in
the form and manner the commissioner determines. The report
must describe the charter schools authorized by the charitable
organization, the effectiveness of those charter schools in
promoting student achievement, and the governance structure of
those charter schools, and also must include other information
requested by the commissioner. An approved charitable
organization may sponsor one or more charter schools. The
commissioner may withdraw the approval of a charitable
organization to sponsor a charter school under this paragraph if
the commissioner determines that the charitable organization
fails to meet generally accepted standards of fiscal management,
violates the law, or shows other good cause. The commissioner's
determination is final. When the commissioner withdraws the
approval of a charitable organization to sponsor a charter
school, the commissioner may approve the decision of a different
eligible sponsor to authorize the charter school or may apply
subdivision 24 governing student enrollment when a charter
school contract is not renewed or terminated.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day
following final enactment.
new text end

Sec. 58.

Minnesota Statutes 2004, section 124D.10,
subdivision 4, is amended to read:

Subd. 4.

Formation of school.

(a) A sponsor may
authorize one or more licensed teachers under section 122A.18,
subdivision 1, to operate a charter school subject to approval
by the commissioner. A board must vote on charter school
application for sponsorship no later than 90 days after
receiving the application. After 90 days, the applicant may
apply to the commissioner. If a board elects not to sponsor a
charter school, the applicant may appeal the board's decision to
the commissioner deleted text begin . The commissioner deleted text end new text begin who new text end may elect to deleted text begin sponsor the
charter school or deleted text end assist the applicant in finding an eligible
sponsor. The school must be organized and operated as a
cooperative under chapter 308A or nonprofit corporation under
chapter 317A and the provisions under the applicable chapter
shall apply to the school except as provided in this section.
Notwithstanding sections 465.717 and 465.719, a school district
may create a corporation for the purpose of creating a charter
school.

(b) Before the operators may form and operate a school, the
sponsor must file an affidavit with the commissioner stating its
intent to authorize a charter school. The affidavit must state
the terms and conditions under which the sponsor would authorize
a charter school new text begin and how the sponsor intends to oversee the
fiscal and student performance of the charter school and to
comply with the terms of the written contract between the
sponsor and the charter school board of directors under
subdivision 6 new text end . The commissioner must approve or disapprove the
sponsor's proposed authorization within deleted text begin 60 deleted text end new text begin 90 new text end days of receipt of
the affidavit. Failure to obtain commissioner approval
precludes a sponsor from authorizing the charter school that was
the subject of the affidavit.

(c) The operators authorized to organize and operate a
school, before entering into a contract or other agreement for
professional or other services, goods, or facilities, must
incorporate as a cooperative under chapter 308A or as a
nonprofit corporation under chapter 317A and must establish a
board of directors composed of at least five members until a
timely election for members of the charter school board of
directors is held according to the school's articles and
bylaws. A charter school board of directors must be composed of
at least five members. Any staff members who are employed at
the school, including teachers providing instruction under a
contract with a cooperative, and all parents of children
enrolled in the school may participate in the election for
members of the school's board of directors. Licensed teachers
employed at the school, including teachers providing instruction
under a contract with a cooperative, must be a majority of the
members of the board of directors before the school completes
its third year of operation, unless the commissioner waives the
requirement for a majority of licensed teachers on the board.
Board of director meetings must comply with chapter 13D.

(d) The granting or renewal of a charter by a sponsoring
entity must not be conditioned upon the bargaining unit status
of the employees of the school.

(e) A sponsor may authorize the operators of a charter
school to expand the operation of the charter school to
additional sites or to add additional grades at the school
beyond those described in the sponsor's application as approved
by the commissioner only after submitting a supplemental
application to the commissioner in a form and manner prescribed
by the commissioner. The supplemental application must provide
evidence that:

(1) the expansion of the charter school is supported by
need and projected enrollment;

(2) the charter school is fiscally sound;

(3) the sponsor supports the expansion; and

(4) the building of the additional site meets all health
and safety requirements to be eligible for lease aid.

(f) The commissioner annually must provide timely financial
management training to newly elected members of a charter school
board of directors and ongoing training to other members of a
charter school board of directors. Training must address ways
to:

(1) proactively assess opportunities for a charter school
to maximize all available revenue sources;

(2) establish and maintain complete, auditable records for
the charter school;

(3) establish proper filing techniques;

(4) document formal actions of the charter school,
including meetings of the charter school board of directors;

(5) properly manage and retain charter school and student
records;

(6) comply with state and federal payroll record-keeping
requirements; and

(7) address other similar factors that facilitate
establishing and maintaining complete records on the charter
school's operations.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for the
2005-2006 school year and later.
new text end

Sec. 59.

Minnesota Statutes 2004, section 124D.10,
subdivision 6, is amended to read:

Subd. 6.

Contract.

The sponsor's authorization for a
charter school must be in the form of a written contract signed
by the sponsor and the board of directors of the charter
school. The contract must be completed within 90 days of the
commissioner's approval of the sponsor's proposed authorization.
The contract for a charter school must be in writing and contain
at least the following:

(1) a description of a program that carries out one or more
of the purposes in subdivision 1;

(2) specific outcomes pupils are to achieve under
subdivision 10;

(3) admission policies and procedures;

(4) management and administration of the school;

(5) requirements and procedures for program and financial
audits;

(6) how the school will comply with subdivisions 8, 13, 16,
and 23;

(7) assumption of liability by the charter school;

(8) types and amounts of insurance coverage to be obtained
by the charter school;

(9) the term of the contract, which may be up to three
years; deleted text begin and
deleted text end

(10) if the board of directors or the operators of the
charter school provide special instruction and services for
children with a disability under sections 125A.03 to 125A.24,
and 125A.65, a description of the financial parameters within
which the charter school will operate to provide the special
instruction and services to children with a disability new text begin ; and
new text end

new text begin (11) the process and criteria the sponsor intends to use to
monitor and evaluate the fiscal and student performance of the
charter school, consistent with subdivision 15 new text end .

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for the
2005-2006 school year and later.
new text end

Sec. 60.

Minnesota Statutes 2004, section 124D.10,
subdivision 8, is amended to read:

Subd. 8.

State and local requirements.

(a) A charter
school shall meet all applicable state and local health and
safety requirements.

(b) A school sponsored by a school board may be located in
any district, unless the school board of the district of the
proposed location disapproves by written resolution.

(c) A charter school must be nonsectarian in its programs,
admission policies, employment practices, and all other
operations. A sponsor may not authorize a charter school or
program that is affiliated with a nonpublic sectarian school or
a religious institution.

(d) Charter schools must not be used as a method of
providing education or generating revenue for students who are
being homeschooled.

(e) The primary focus of a charter school must be to
provide a comprehensive program of instruction for at least one
grade or age group from five through 18 years of age.
Instruction may be provided to people younger than five years
and older than 18 years of age.

(f) A charter school may not charge tuition.

(g) A charter school is subject to and must comply with
chapter 363A and section 121A.04.

(h) A charter school is subject to and must comply with the
Pupil Fair Dismissal Act, sections 121A.40 to 121A.56, and the
Minnesota Public School Fee Law, sections 123B.34 to 123B.39.

(i) A charter school is subject to the same financial
audits, audit procedures, and audit requirements as a district.
Audits must be conducted in compliance with generally accepted
governmental auditing standards, the Federal Single Audit Act,
if applicable, and section 6.65. A charter school is subject to
and must comply with sections 15.054; 118A.01; 118A.02; 118A.03;
118A.04; 118A.05; 118A.06; 123B.52, subdivision 5; 471.38;
471.391; 471.392; 471.425; 471.87; 471.88, subdivisions 1, 2, 3,
4, 5, 6, 12, 13, and 15; 471.881; and 471.89. The audit must
comply with the requirements of sections 123B.75 to 123B.83,
except to the extent deviations are necessary because of the
program at the school. Deviations must be approved by the
commissioner. The Department of Education, state auditor, or
legislative auditor may conduct financial, program, or
compliance audits. A charter school determined to be in
statutory operating debt under sections 123B.81 to 123B.83 must
submit a plan under section 123B.81, subdivision 4.

(j) A charter school is a district for the purposes of tort
liability under chapter 466.

(k) A charter school must comply with sections 13.32;
120A.22, subdivision 7; 121A.75; and 260B.171, subdivisions 3
and 5.

(l) A charter school is subject to the Pledge of Allegiance
requirement under section 121A.11, subdivision 3.

new text begin (m) A charter school is subject to sections 123B.36,
subdivision 1, paragraph (b), clause (10), and 123B.49,
subdivision 4, paragraphs (a) and (f), when its students
participate in extracurricular activities in their resident
district.
new text end

new text begin (n) Charter school board of director open meeting
requirements are governed according to subdivision 4.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for the
2005-2006 school year and later.
new text end

Sec. 61.

Minnesota Statutes 2004, section 124D.10,
subdivision 15, is amended to read:

Subd. 15.

Review and comment.

new text begin (a) new text end The department must
review and comment on the evaluation, by the sponsor, of the
performance of a charter school before the charter school's
contract is renewed new text begin for another contract term. The sponsor must
submit to the commissioner timely information for the review and
comment new text end .

new text begin (b) new text end A sponsor shall monitor and evaluate the fiscal and
student performance of the school, and may for this purpose
annually assess a charter school: (1) in its first, second, or
third year of operation up to $30 per student up to a maximum of
$10,000; and (2) in its fourth or a subsequent year of operation
up to $10 per student up to a maximum of $3,500. deleted text begin The
information for the review and comment shall be reported by the
sponsor to the commissioner of education in a timely manner.
deleted text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for the
2005-2006 school year and later.
new text end

Sec. 62.

Minnesota Statutes 2004, section 124D.10,
subdivision 23, is amended to read:

Subd. 23.

Causes for nonrenewal or termination of charter
school contract.

(a) The duration of the contract with a
sponsor must be for the term contained in the contract according
to subdivision 6. The sponsor may or may not renew a contract
at the end of the term for any ground listed in paragraph (b).
A sponsor may unilaterally terminate a contract during the term
of the contract for any ground listed in paragraph (b). At
least 60 days before not renewing or terminating a contract, the
sponsor shall notify the board of directors of the charter
school of the proposed action in writing. The notice shall
state the grounds for the proposed action in reasonable detail
and that the charter school's board of directors may request in
writing an informal hearing before the sponsor within 14 days of
receiving notice of nonrenewal or termination of the contract.
Failure by the board of directors to make a written request for
a hearing within the 14-day period shall be treated as
acquiescence to the proposed action. Upon receiving a timely
written request for a hearing, the sponsor shall give reasonable
notice to the charter school's board of directors of the hearing
date. The sponsor shall conduct an informal hearing before
taking final action. The sponsor shall take final action to
renew or not renew a contract by the last day of classes in the
school year. If the sponsor is a local board, the school's
board of directors may appeal the sponsor's decision to the
commissioner.

(b) A contract may be terminated or not renewed upon any of
the following grounds:

(1) failure to meet the requirements for pupil performance
contained in the contract;

(2) failure to meet generally accepted standards of fiscal
management;

(3) violations of law; or

(4) other good cause shown.

If a contract is terminated or not renewed new text begin under this
paragraph new text end , the school must be dissolved according to the
applicable provisions of chapter 308A or 317A, except when the
commissioner approves the decision of a different eligible
sponsor to authorize the charter school.

(c) new text begin If at the end of a contract term, either the sponsor or
the charter school board of directors wants to voluntarily
terminate the contract, a change in sponsors is allowed if the
commissioner approves the decision of a different eligible
sponsor to authorize the charter school. The party intending to
terminate the contract must notify the other party and the
commissioner of its intent at least 90 days before the date on
which the contract ends. The sponsor that is a party to the
existing contract at least must inform the approved different
eligible sponsor about the fiscal and student performance of the
school. If no different eligible sponsor is approved, the
school must be dissolved according to applicable law and the
terms of the contract.
new text end

new text begin (d) new text end The commissioner, after providing reasonable notice to
the board of directors of a charter school and the existing
sponsor, and after providing an opportunity for a public
hearing, may terminate the existing sponsorial relationship if
the charter school has a history of:

(1) financial mismanagement; or

(2) repeated violations of the law.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for the
2005-2006 school year and later.
new text end

Sec. 63.

Minnesota Statutes 2004, section 124D.11,
subdivision 1, is amended to read:

Subdivision 1.

General education revenue.

(a) General
education revenue must be paid to a charter school as though it
were a district. The general education revenue for each
adjusted marginal cost pupil unit is the state average general
education revenue per pupil unit, plus the referendum
equalization aid allowance in the pupil's district of residence,
minus an amount equal to the product of the formula allowance
according to section 126C.10, subdivision 2, times .0485,
calculated without basic skills revenue, new text begin extended time revenue,
alternative compensation revenue, transition revenue, new text end and
transportation sparsity revenue, plus basic skills revenue new text begin ,
extended time revenue, basic alternative compensation aid
according to section 126C.10, subdivision 34, new text end and transition
revenue as though the school were a school district. new text begin The
general education revenue for each extended time marginal cost
pupil unit equals $4,378.
new text end

(b) Notwithstanding paragraph (a), for charter schools in
the first year of operation, general education revenue shall be
computed using the number of adjusted pupil units in the current
fiscal year.

Sec. 64.

Minnesota Statutes 2004, section 124D.11,
subdivision 2, is amended to read:

Subd. 2.

Transportation revenue.

Transportation revenue
must be paid to a charter school that provides transportation
services according to section 124D.10, subdivision 16, according
to this subdivision. Transportation aid shall equal
transportation revenue.

In addition to the revenue under subdivision 1, a charter
school providing transportation services must receive general
education aid deleted text begin for each pupil unit deleted text end equal to the sum of new text begin the
product of (i) new text end an amount equal to the product of the formula
allowance according to section 126C.10, subdivision 2, times
.0485, plus the transportation sparsity allowance for the school
district in which the charter school is located new text begin times (ii) the
adjusted marginal cost pupil units, plus the product of $223
times the extended time marginal cost pupil units new text end .

Sec. 65.

Minnesota Statutes 2004, section 124D.11,
subdivision 6, is amended to read:

Subd. 6.

Other aid, grants, revenue.

(a) A charter
school is eligible to receive other aids, grants, and revenue
according to chapters 120A to 129C, as though it were a district.

(b) Notwithstanding paragraph (a), a charter school may not
receive aid, a grant, or revenue if a levy new text begin , other than a levy
required by sections 125A.76 or 126C.10, new text end is required to obtain
the money, new text begin or if the aid, grant, or revenue is a replacement of
levy revenue, new text end except as otherwise provided in this section.

(c) Federal aid received by the state must be paid to the
school, if it qualifies for the aid as though it were a school
district.

(d) A charter school may receive money from any source for
capital facilities needs. In the year-end report to the
commissioner of education, the charter school shall report the
total amount of funds received from grants and other outside
sources.

Sec. 66.

new text begin [124D.4531] CAREER AND TECHNICAL LEVY.
new text end

new text begin Subdivision 1. new text end

new text begin Career and technical levy. new text end

new text begin (a) A district
with a career and technical program approved under this section
for the fiscal year in which the levy is certified may levy an
amount equal to the lesser of:
new text end

new text begin (1) $80 times the district's average daily membership in
grades 10 through 12 for the fiscal year in which the levy is
certified; or
new text end

new text begin (2) 25 percent of approved expenditures in the fiscal year
in which the levy is certified for the following:
new text end

new text begin (i) salaries paid to essential, licensed personnel
providing direct instructional services to students in that
fiscal year for services rendered in the district's approved
career and technical education programs;
new text end

new text begin (ii) contracted services provided by a public or private
agency other than a Minnesota school district or cooperative
center under subdivision 7;
new text end

new text begin (iii) necessary travel between instructional sites by
licensed career and technical education personnel;
new text end

new text begin (iv) necessary travel by licensed career and technical
education personnel for vocational student organization
activities held within the state for instructional purposes;
new text end

new text begin (v) curriculum development activities that are part of a
five-year plan for improvement based on program assessment;
new text end

new text begin (vi) necessary travel by licensed career and technical
education personnel for noncollegiate credit-bearing
professional development; and
new text end

new text begin (vii) specialized vocational instructional supplies.
new text end

new text begin (b) Up to ten percent of a district's career and technical
levy may be spent on equipment purchases. Districts using the
career and technical levy for equipment purchases must report to
the department on the improved learning opportunities for
students that result from the investment in equipment.
new text end

new text begin (c) The district must recognize the full amount of this
levy as revenue for the fiscal year in which it is certified.
new text end

new text begin Subd. 2. new text end

new text begin Allocation from cooperative centers and
intermediate districts. new text end

new text begin For purposes of this section, a
cooperative center or an intermediate district must allocate its
approved expenditures for career and technical education
programs among participating districts.
new text end

new text begin Subd. 3. new text end

new text begin Levy guarantee. new text end

new text begin Notwithstanding subdivision 1,
the career and technical education levy for a district is not
less than the lesser of:
new text end

new text begin (1) the district's career and technical education levy
authority for the previous fiscal year; or
new text end

new text begin (2) 100 percent of the approved expenditures for career and
technical programs included in subdivision 1, paragraph (b), for
the fiscal year in which the levy is certified.
new text end

new text begin Subd. 4. new text end

new text begin Compliance with rules. new text end

new text begin (a) Levy authority must
be granted under this section only for services rendered or for
costs incurred in career and technical education programs
approved by the commissioner and operated in accordance with
rules adopted by the commissioner. The rules must not require
any minimum number of administrative staff, any minimum period
of coordination time or extended employment for career and
technical education personnel, or the availability of vocational
student activities or organizations for a career and technical
education program to qualify for this levy. Levy authority
shall be granted only for services rendered and for costs
incurred by essential, licensed personnel, or approved
paraprofessionals who meet the requirements for licensure
pursuant to the rules of the Minnesota Board of Teaching.
new text end

new text begin For the purposes of this paragraph, "licensed personnel"
means persons holding a valid career and technical license
issued by the commissioner. If an average of five or fewer
secondary full-time equivalent students are enrolled per teacher
in an approved postsecondary program at Intermediate District
No. 287, 916, or 917, "licensed personnel" means persons holding
a valid vocational license issued by the commissioner or the
Board of Trustees of the Minnesota State Colleges and
Universities.
new text end

new text begin (b) Notwithstanding section 127A.42, the commissioner may
modify or withdraw the program or levy authority under this
section without proceeding under section 127A.42, at any time.
To do so, the commissioner must determine that the program does
not comply with rules of the Department of Education or that any
facts concerning the program or its budget differ from the facts
in the district's approved application.
new text end

new text begin Subd. 5. new text end

new text begin Limit. new text end

new text begin The commissioner may reduce the levy
under this section for a career and technical education program
that receives funds from any other source. A district or center
must not receive a total amount of levy authority pursuant to
this section which, when added to funds from other sources, will
provide the program an amount for salaries and travel which
exceeds 100 percent of the amount of its expenditures for
salaries and travel in the program.
new text end

new text begin Subd. 6. new text end

new text begin Levy for contracted services. new text end

new text begin In addition to
the provisions of subdivisions 4 and 5, a school district or
cooperative center may contract with a public or private agency
other than a Minnesota school district or cooperative center for
the provision of career and technical education services. The
commissioner must adopt rules relating to program approval
procedures and criteria for these contracts and levy authority
must be granted only for contracts approved by the
commissioner. The district or cooperative center contracting
for these services must be construed to be providing the
services.
new text end

new text begin Subd. 7. new text end

new text begin District reports. new text end

new text begin Each district or cooperative
center must report data to the department for all career and
technical education programs as required by the department to
implement the career and technical levy formula.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxes
payable in 2008.
new text end

Sec. 67.

Minnesota Statutes 2004, section 124D.66,
subdivision 3, is amended to read:

Subd. 3.

Eligible services.

(a) Assurance of mastery
programs may provide direct instructional services to an
eligible pupil, or a group of eligible pupils, under the
following conditions in paragraphs (b) to (d).

(b) Instruction may be provided at one or more grade levels
from kindergarten to grade 8 and for students in grades 9
through 12 who new text begin were enrolled in grade 8 before the 2005-2006
school year and new text end have failed the basic skills tests new text begin , or who were
enrolled in grade 8 in the 2005-2006 school year and later and
have failed the Minnesota Comprehensive Assessments (MCA-IIs) in
reading, mathematics, or writing as required for high school
graduation under section 120B.02 new text end . If an assessment of pupils'
needs within a district demonstrates that the eligible pupils in
grades kindergarten to grade 8 are being appropriately served, a
district may serve eligible pupils in grades 9 to 12.

(c) Instruction must be provided under the supervision of
the eligible pupil's regular classroom teacher. Instruction may
be provided by the eligible pupil's classroom teacher, by
another teacher, by a team of teachers, or by an education
assistant or aide. A special education teacher may provide
instruction, but instruction that is provided under this section
is not eligible for aid under section 125A.76.

(d) The instruction that is provided must differ from the
initial instruction the pupil received in the regular classroom
setting. The instruction may differ by presenting different
curriculum than was initially presented in the regular classroom
or by presenting the same curriculum:

(1) at a different rate or in a different sequence than it
was initially presented;

(2) using different teaching methods or techniques than
were used initially; or

(3) using different instructional materials than were used
initially.

Sec. 68.

Minnesota Statutes 2004, section 124D.74,
subdivision 1, is amended to read:

Subdivision 1.

Program described.

American Indian
education programs are programs in public elementary and
secondary schools, nonsectarian nonpublic, community,
tribal, new text begin charter, new text end or alternative schools enrolling American
Indian children designed to:

(1) support postsecondary preparation for pupils;

(2) support the academic achievement of American Indian
students with identified focus to improve reading and mathematic
skills;

(3) make the curriculum more relevant to the needs,
interests, and cultural heritage of American Indian pupils;

(4) provide positive reinforcement of the self-image of
American Indian pupils;

(5) develop intercultural awareness among pupils, parents,
and staff; and

(6) supplement, not supplant, state and federal educational
and cocurricular programs.

Program components may include: development of support
components for students in the areas of academic achievement,
retention, and attendance; development of support components for
staff, including in-service training and technical assistance in
methods of teaching American Indian pupils; research projects,
including experimentation with and evaluation of methods of
relating to American Indian pupils; provision of personal and
vocational counseling to American Indian pupils; modification of
curriculum, instructional methods, and administrative procedures
to meet the needs of American Indian pupils; and supplemental
instruction in American Indian language, literature, history,
and culture. Districts offering programs may make contracts for
the provision of program components by establishing cooperative
liaisons with tribal programs and American Indian social service
agencies. These programs may also be provided as components of
early childhood and family education programs.

Sec. 69.

Minnesota Statutes 2004, section 124D.81,
subdivision 1, is amended to read:

Subdivision 1.

Grants; procedures.

Each fiscal year the
commissioner of education must make grants to no fewer than six
American Indian education programs. At least three programs
must be in urban areas and at least three must be on or near
reservations. The board of a local district, a participating
school or a group of boards may develop a proposal for grants in
support of American Indian education programs. Proposals may
provide for contracts for the provision of program components by
nonsectarian nonpublic, community, tribal, new text begin charter, new text end or
alternative schools. The commissioner shall prescribe the form
and manner of application for grants, and no grant shall be made
for a proposal not complying with the requirements of sections
124D.71 to 124D.82. deleted text begin The commissioner must submit all proposals
to the state Advisory Committee on American Indian Education
Programs for its recommendations concerning approval,
modification, or disapproval and the amounts of grants to
approved programs.
deleted text end

Sec. 70.

Minnesota Statutes 2004, section 124D.84,
subdivision 1, is amended to read:

Subdivision 1.

Awards.

The commissioner deleted text begin , with the advice
and counsel of the Minnesota Indian Education Committee, deleted text end may
award scholarships to any Minnesota resident student who is of
one-fourth or more Indian ancestry, who has applied for other
existing state and federal scholarship and grant programs, and
who, in the opinion of the commissioner, has the capabilities to
benefit from further education. Scholarships must be for
accredited degree programs in accredited Minnesota colleges or
universities or for courses in accredited Minnesota business,
technical, or vocational schools. Scholarships may also be
given to students attending Minnesota colleges that are in
candidacy status for obtaining full accreditation, and are
eligible for and receiving federal financial aid programs.
Students are also eligible for scholarships when enrolled as
students in Minnesota higher education institutions that have
joint programs with other accredited higher education
institutions. Scholarships shall be used to defray the total
cost of education including tuition, incidental fees, books,
supplies, transportation, other related school costs and the
cost of board and room and shall be paid directly to the college
or school concerned where the student receives federal financial
aid. The total cost of education includes all tuition and fees
for each student enrolling in a public institution and the
portion of tuition and fees for each student enrolling in a
private institution that does not exceed the tuition and fees at
a comparable public institution. Each student shall be awarded
a scholarship based on the total cost of the student's education
and a federal standardized need analysis. Applicants are
encouraged to apply for all other sources of financial aid. deleted text begin The
amount and type of each scholarship shall be determined through
the advice and counsel of the Minnesota Indian education
committee.
deleted text end

When an Indian student satisfactorily completes the work
required by a certain college or school in a school year the
student is eligible for additional scholarships, if additional
training is necessary to reach the student's educational and
vocational objective. Scholarships may not be given to any
Indian student for more than five years of study deleted text begin without special
recommendation of the Minnesota Indian Education Committee deleted text end .

Sec. 71.

Minnesota Statutes 2004, section 126C.457, is
amended to read:

126C.457 CAREER AND TECHNICAL LEVY.

new text begin For taxes payable in 2006 and 2007, new text end a school district may
levy an amount equal to the greater of (1) $10,000, or (2) the
district's fiscal year 2001 entitlement for career and technical
aid under Minnesota Statutes 2000, section 124D.453. The
district must recognize the full amount of this levy as revenue
for the fiscal year in which it is certified. Revenue received
under this section must be reserved and used only for career and
technical programs.

Sec. 72.

Minnesota Statutes 2004, section 127A.47,
subdivision 8, is amended to read:

Subd. 8.

Charter schools.

(a) The general education aid
for districts must be adjusted for each pupil attending a
charter school under section 124D.10. The adjustments must be
made according to this subdivision.

(b) General education aid paid to a district in which a
charter school not providing transportation according to section
124D.10, subdivision 16, is located must be increased by an
amount equal to the new text begin sum of:
new text end

new text begin (1) the new text end product of: deleted text begin (1) deleted text end new text begin (i) new text end the sum of an amount equal to
the product of the formula allowance according to section
126C.10, subdivision 2, times .0485, plus the transportation
sparsity allowance for the district; times deleted text begin (2) deleted text end new text begin (ii) new text end the new text begin adjusted
marginal cost new text end pupil units attributable to the pupil new text begin ; plus
new text end

new text begin (2) the product of $223 times the extended time marginal
cost pupil units attributable to the pupil new text end .

Sec. 73.

Minnesota Statutes 2004, section 128C.12,
subdivision 1, is amended to read:

Subdivision 1.

Dues and events revenue.

new text begin (a) new text end The state
auditor annually must examine the accounts of, and audit all
money paid to, the State High School League by its members. The
audit must include financial and compliance issues. The deleted text begin state
auditor deleted text end new text begin audit new text end must also deleted text begin audit deleted text end new text begin include new text end all money derived from any
event sponsored by the league. deleted text begin League audits must include
audits of administrative regions of the league. The league and
its administrative regions may not contract with private
auditors. The scope of the state auditor's examinations of the
league must be agreed upon by the board and the state auditor,
provided that all requirements of this section must be met.
deleted text end

new text begin (b) The administrative regions of the league may contract
with the state auditor or with a private certified public
accountant for the audit required by this section. If a private
certified public accountant performs the audit, the state
auditor may require additional information from the private
certified public accountant as the state auditor deems in the
public interest. The state auditor may accept the audit or make
additional examinations as the state auditor deems to be in the
public interest.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day
following final enactment.
new text end

Sec. 74.

Minnesota Statutes 2004, section 128C.12,
subdivision 3, is amended to read:

Subd. 3.

Copies.

The deleted text begin state auditor deleted text end new text begin board new text end must file
copies of the deleted text begin financial and compliance deleted text end audit report with the
commissioner of education and the director of the Legislative
Reference Library.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day
following final enactment.
new text end

Sec. 75.

new text begin [129C.105] BOARD MEETINGS BY TELEPHONE OR OTHER
ELECTRONIC MEANS.
new text end

new text begin (a) Notwithstanding section 13D.01 and if complying with
section 13D.02 is impractical, the board for the Perpich Center
for Arts Education may conduct a meeting of its members by
telephone or other electronic means so long as the following
conditions are met:
new text end

new text begin (1) all members of the board participating in the meeting,
wherever their physical location, can hear one another and all
discussion and testimony;
new text end

new text begin (2) members of the public present at the regular meeting
location of the board can hear all discussion and testimony and
all votes of members of the board;
new text end

new text begin (3) at least one member of the board is physically present
at the regular meeting location; and
new text end

new text begin (4) all votes are conducted by roll call, so each member's
vote on each issue can be identified and recorded.
new text end

new text begin (b) Each member of the board participating in a meeting by
telephone or other electronic means is considered present at the
meeting for purposes of determining a quorum and participating
in all proceedings.
new text end

new text begin (c) If telephone or other electronic means is used to
conduct a meeting, the board, to the extent practical, shall
allow a person to monitor the meeting electronically from a
remote location. The board may require the person making such a
connection to pay for documented marginal costs that the board
incurs as a result of the additional connection.
new text end

new text begin (d) If telephone or other electronic means is used to
conduct a regular, special, or emergency meeting, the board
shall provide notice of the regular meeting location, of the
fact that some members may participate by telephone or other
electronic means, and of the provisions of paragraph (c). The
timing and method of providing notice is governed by section
13D.04.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day
following final enactment.
new text end

Sec. 76.

Minnesota Statutes 2004, section 171.04,
subdivision 1, is amended to read:

Subdivision 1.

Persons not eligible.

The department
shall not issue a driver's license:

(1) to any person under 18 years unless:

(i) the applicant is 16 or 17 years of age and has a
previously issued valid license from another state or country or
the applicant has, for the 12 consecutive months preceding
application, held a provisional license and during that time has
incurred (A) no conviction for a violation of section 169A.20,
169A.33, 169A.35, or sections 169A.50 to 169A.53, (B) no
conviction for a crash-related moving violation, and (C) not
more than one conviction for a moving violation that is not
crash related. "Moving violation" means a violation of a
traffic regulation but does not include a parking violation,
vehicle equipment violation, or warning citation;

(ii) the application for a license is approved by (A)
either parent when both reside in the same household as the
minor applicant or, if otherwise, then (B) the parent or spouse
of the parent having custody or, in the event there is no court
order for custody, then (C) the parent or spouse of the parent
with whom the minor is living or, if subitems (A) to (C) do not
apply, then (D) the guardian having custody of the minor or, in
the event a person under the age of 18 has no living father,
mother, or guardian, or is married or otherwise legally
emancipated, then (E) the minor's adult spouse, adult close
family member, or adult employer; provided, that the approval
required by this item contains a verification of the age of the
applicant and the identity of the parent, guardian, adult
spouse, adult close family member, or adult employer; deleted text begin and
deleted text end

(iii) the applicant presents a certification by the person
who approves the application under item (ii), stating that the
applicant has driven a motor vehicle accompanied by and under
supervision of a licensed driver at least 21 years of age for at
least ten hours during the period of provisional licensure; new text begin and
new text end

new text begin (iv) the applicant certifies either (A) the applicant's
school attendance under section 171.056 and the district,
charter school, or alternative education program in which the
applicant is currently enrolled, or (B) that the enrolling
district, charter school, or alternative education program board
waived the attendance requirement under section 120A.23;
new text end

(2) to any person who is 18 years of age or younger, unless
the person has applied for, been issued, and possessed the
appropriate instruction permit for a minimum of six months, and,
with respect to a person under 18 years of age, a provisional
license for a minimum of 12 months;

(3) to any person who is 19 years of age or older, unless
that person has applied for, been issued, and possessed the
appropriate instruction permit for a minimum of three months;

(4) to any person whose license has been suspended during
the period of suspension except that a suspended license may be
reinstated during the period of suspension upon the licensee
furnishing proof of financial responsibility in the same manner
as provided in the Minnesota No-Fault Automobile Insurance Act;

(5) to any person whose license has been revoked except
upon furnishing proof of financial responsibility in the same
manner as provided in the Minnesota No-Fault Automobile
Insurance Act and if otherwise qualified;

(6) to any drug-dependent person, as defined in section
254A.02, subdivision 5;

(7) to any person who has been adjudged legally incompetent
by reason of mental illness, mental deficiency, or inebriation,
and has not been restored to capacity, unless the department is
satisfied that the person is competent to operate a motor
vehicle with safety to persons or property;

(8) to any person who is required by this chapter to take a
vision, knowledge, or road examination, unless the person has
successfully passed the examination. An applicant who fails
four road tests must complete a minimum of six hours of
behind-the-wheel instruction with an approved instructor before
taking the road test again;

(9) to any person who is required under the Minnesota
No-Fault Automobile Insurance Act to deposit proof of financial
responsibility and who has not deposited the proof;

(10) to any person when the commissioner has good cause to
believe that the operation of a motor vehicle on the highways by
the person would be inimical to public safety or welfare;

(11) to any person when, in the opinion of the
commissioner, the person is afflicted with or suffering from a
physical or mental disability or disease that will affect the
person in a manner as to prevent the person from exercising
reasonable and ordinary control over a motor vehicle while
operating it upon the highways;

(12) to a person who is unable to read and understand
official signs regulating, warning, and directing traffic;

(13) to a child for whom a court has ordered denial of
driving privileges under section 260C.201, subdivision 1, or
260B.235, subdivision 5, until the period of denial is
completed; or

(14) to any person whose license has been canceled, during
the period of cancellation.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective September 1,
2005, and applies to all persons under age 18 possessing or
applying for a driver's instruction permit or provisional
license on or after that date.
new text end

Sec. 77.

Minnesota Statutes 2004, section 171.05,
subdivision 2, is amended to read:

Subd. 2.

Person less than 18 years of age.

(a)
Notwithstanding any provision in subdivision 1 to the contrary,
the department may issue an instruction permit to an applicant
who is 15, 16, or 17 years of age and who:

(1) has completed a course of driver education in another
state, has a previously issued valid license from another state,
or is enrolled in either:

(i) a public, private, or commercial driver education
program that is approved by the commissioner of public safety
and that includes classroom and behind-the-wheel training; or

(ii) an approved behind-the-wheel driver education program
when the student is receiving full-time instruction in a home
school within the meaning of sections 120A.22 and 120A.24, the
student is working toward a homeschool diploma, the student's
status as a homeschool student has been certified by the
superintendent of the school district in which the student
resides, and the student is taking home-classroom driver
training with classroom materials approved by the commissioner
of public safety;

(2) has completed the classroom phase of instruction in the
driver education program;

(3) has passed a test of the applicant's eyesight;

(4) has passed a department-administered test of the
applicant's knowledge of traffic laws;

(5) has completed the required application, which must be
approved by (i) either parent when both reside in the same
household as the minor applicant or, if otherwise, then (ii) the
parent or spouse of the parent having custody or, in the event
there is no court order for custody, then (iii) the parent or
spouse of the parent with whom the minor is living or, if items
(i) to (iii) do not apply, then (iv) the guardian having custody
of the minor or, in the event a person under the age of 18 has
no living father, mother, or guardian, or is married or
otherwise legally emancipated, then (v) the applicant's adult
spouse, adult close family member, or adult employer; provided,
that the approval required by this clause contains a
verification of the age of the applicant and the identity of the
parent, guardian, adult spouse, adult close family member, or
adult employer; deleted text begin and
deleted text end

(6) new text begin certifies either (i) the applicant's school attendance
under section 171.056 and the district, charter school, or
alternative education program in which the applicant is
currently enrolled, or (ii) that the enrolling district, charter
school, or alternative education program board waived the
attendance requirement under section 120A.23; and
new text end

new text begin (7) new text end has paid the fee required in section 171.06,
subdivision 2.

(b) The instruction permit is valid for one year from the
date of application and may be renewed upon payment of a fee
equal to the fee for issuance of an instruction permit under
section 171.06, subdivision 2.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective September 1,
2005, and applies to all persons under age 18 possessing or
applying for a driver's instruction permit on or after that date.
new text end

Sec. 78.

Minnesota Statutes 2004, section 171.05,
subdivision 2b, is amended to read:

Subd. 2b.

Instruction permit use by person under age 18.

(a) This subdivision applies to persons who have applied for and
received an instruction permit under subdivision 2.

(b) The permit holder may, with the permit in possession,
operate a motor vehicle, but must be accompanied by and be under
the supervision of a certified driver education instructor, the
permit holder's parent or guardian, or another licensed driver
age 21 or older. The supervisor must occupy the seat beside the
permit holder.

(c) The permit holder may operate a motor vehicle only when
every occupant under the age of 18 has a seat belt or child
passenger restraint system properly fastened. A person who
violates this paragraph is subject to a fine of $25. A peace
officer may not issue a citation for a violation of this
paragraph unless the officer lawfully stopped or detained the
driver of the motor vehicle for a moving violation as defined in
section 171.04, subdivision 1. The commissioner shall not
record a violation of this paragraph on a person's driving
record.

(d) The permit holder must maintain a driving record free
of convictions for moving violations, as defined in section
171.04, subdivision 1, and free of convictions for violation of
section 169A.20, 169A.33, 169A.35, or sections 169A.50 to
169A.53. If the permit holder drives a motor vehicle in
violation of the law, the commissioner shall suspend, cancel, or
revoke the permit in accordance with the statutory section
violated.

new text begin (e) The permit holder must comply with the school
attendance requirement under section 171.056, except when the
attendance requirement is waived under section 120A.23. If the
permit holder does not attend school as required, the
commissioner must cancel the permit under section 171.056.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective September 1,
2005, and applies to all persons under age 18 possessing or
applying for a driver's instruction permit on or after that date.
new text end

Sec. 79.

Minnesota Statutes 2004, section 171.05,
subdivision 3, is amended to read:

Subd. 3.

Motorized bicycle.

Notwithstanding any
provision in subdivision 1 to the contrary, the department, upon
application and payment of the fee prescribed in section 171.02,
subdivision 3, may issue a motorized bicycle instruction permit
to an applicant who is 15 years of age deleted text begin and deleted text end new text begin , new text end who has successfully
completed the written portion of the examination prescribed by
the commissioner new text begin , and who certifies either (1) the applicant's
school attendance under section 171.056 and the district,
charter school, or alternative education program in which the
applicant is currently enrolled, or (2) that the enrolling
district, charter school, or alternative education program board
waived the attendance requirement under section 120A.23 new text end . The
holder of this instruction permit who has the permit in
possession may operate a motorized bicycle within one mile of
the holder's residence for the purpose of practicing to take the
operator portion of the examination prescribed by the
commissioner.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective September 1,
2005, and applies to all persons under age 18 possessing or
applying for a motorized bicycle instruction permit on or after
that date.
new text end

Sec. 80.

new text begin [171.056] SCHOOL ATTENDANCE REQUIREMENT FOR
DRIVER'S INSTRUCTION PERMIT, MOTORIZED BICYCLE PERMIT, AND
PROVISIONAL LICENSE.
new text end

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

new text begin (a) As used in this section
the terms defined in this subdivision have the meanings given
them.
new text end

new text begin (b) "Continuing truant" means a student under section
260A.02, subdivision 3, who is absent without valid excuse from
instruction in a school.
new text end

new text begin (c) "Habitual truant" means a person under section
260C.007, subdivision 19, who is absent without lawful excuse
from attendance at school.
new text end

new text begin (d) "High school diploma" means an official record or
document indicating that the student has satisfied the
graduation requirements of that school as defined under section
120A.22, subdivision 4.
new text end

new text begin (e) "Public school" means a public school, state approved
alternative program (SAAP), or charter school.
new text end

new text begin (f) "School board" means a public school district school
board, SAAP board, or charter school board of directors.
new text end

new text begin (g) "School principal" means a principal or chief
administrative officer of a public school.
new text end

new text begin Subd. 2. new text end [ISSUANCE OR RENEWAL OF DRIVER'S INSTRUCTION
PERMIT, MOTORIZED BICYCLE PERMIT, OR PROVISIONAL LICENSE.] new text begin (a)
Notwithstanding any law to the contrary, except when the
attendance requirement is waived under section 120A.23, school
attendance is a requirement for issuing a new driver's
instruction permit, motorized bicycle permit, or provisional
license or renewing the permit of a person under age 18. The
person meets the school attendance requirement when the person:
new text end

new text begin (1) has a high school diploma or general education
development certificate (GED);
new text end

new text begin (2) has withdrawn from school under section 120A.22,
subdivision 8; or
new text end

new text begin (3) is enrolled and attending a public school and is not a
continuing truant or habitually truant, is enrolled and
attending a nonpublic school, or is homeschooled.
new text end

new text begin (b) A person under age 18 who applies for a motorized
bicycle permit, instruction permit, or provisional license must
submit information to the Department of Public Safety in the
manner and format it prescribes documenting that the person has
met the requirements of paragraph (a).
new text end

new text begin Subd. 3. new text end

new text begin Expungement of record. new text end

new text begin Upon receiving the
written or electronic request of a student who is age 18 or
older, the Department of Public Safety must expunge from the
department's motor vehicle records all the student's truancy
data related to the department refusing to issue or canceling
the student's permit or license under this section.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective September 1,
2005, and applies to all persons under age 18 possessing or
applying for a motorized bicycle permit, driver's instruction
permit, or provisional license on or after that date.
new text end

Sec. 81.

Minnesota Statutes 2004, section 260C.007,
subdivision 6, is amended to read:

Subd. 6.

Child in need of protection or services.

"Child
in need of protection or services" means a child who is in need
of protection or services because the child:

(1) is abandoned or without parent, guardian, or custodian;

(2)(i) has been a victim of physical or sexual abuse, (ii)
resides with or has resided with a victim of domestic child
abuse as defined in subdivision 5, (iii) resides with or would
reside with a perpetrator of domestic child abuse or child abuse
as defined in subdivision 5, or (iv) is a victim of emotional
maltreatment as defined in subdivision 8;

(3) is without necessary food, clothing, shelter,
education, or other required care for the child's physical or
mental health or morals because the child's parent, guardian, or
custodian is unable or unwilling to provide that care;

(4) is without the special care made necessary by a
physical, mental, or emotional condition because the child's
parent, guardian, or custodian is unable or unwilling to provide
that care, including a child in voluntary placement due solely
to the child's developmental disability or emotional
disturbance;

(5) is medically neglected, which includes, but is not
limited to, the withholding of medically indicated treatment
from a disabled infant with a life-threatening condition. The
term "withholding of medically indicated treatment" means the
failure to respond to the infant's life-threatening conditions
by providing treatment, including appropriate nutrition,
hydration, and medication which, in the treating physician's or
physicians' reasonable medical judgment, will be most likely to
be effective in ameliorating or correcting all conditions,
except that the term does not include the failure to provide
treatment other than appropriate nutrition, hydration, or
medication to an infant when, in the treating physician's or
physicians' reasonable medical judgment:

(i) the infant is chronically and irreversibly comatose;

(ii) the provision of the treatment would merely prolong
dying, not be effective in ameliorating or correcting all of the
infant's life-threatening conditions, or otherwise be futile in
terms of the survival of the infant; or

(iii) the provision of the treatment would be virtually
futile in terms of the survival of the infant and the treatment
itself under the circumstances would be inhumane;

(6) is one whose parent, guardian, or other custodian for
good cause desires to be relieved of the child's care and
custody, including a child in placement according to voluntary
release by the parent under section 260C.212, subdivision 8;

(7) has been placed for adoption or care in violation of
law;

(8) is without proper parental care because of the
emotional, mental, or physical disability, or state of
immaturity of the child's parent, guardian, or other custodian;

(9) is one whose behavior, condition, or environment is
such as to be injurious or dangerous to the child or others. An
injurious or dangerous environment may include, but is not
limited to, the exposure of a child to criminal activity in the
child's home;

(10) is experiencing growth delays, which may be referred
to as failure to thrive, that have been diagnosed by a physician
and are due to parental neglect;

(11) has engaged in prostitution as defined in section
609.321, subdivision 9;

(12) has committed a delinquent act or a juvenile petty
offense before becoming ten years old;

(13) is a runaway;

(14) is a new text begin continuing or new text end habitual truant;

(15) has been found incompetent to proceed or has been
found not guilty by reason of mental illness or mental
deficiency in connection with a delinquency proceeding, a
certification under section 260B.125, an extended jurisdiction
juvenile prosecution, or a proceeding involving a juvenile petty
offense; or

(16) has been found by the court to have committed domestic
abuse perpetrated by a minor under Laws 1997, chapter 239,
article 10, sections 2 to 26, has been ordered excluded from the
child's parent's home by an order for protection/minor
respondent, and the parent or guardian is either unwilling or
unable to provide an alternative safe living arrangement for the
child.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2005.
new text end

Sec. 82.

Minnesota Statutes 2004, section 260C.007, is
amended by adding a subdivision to read:

new text begin Subd. 8a. new text end

new text begin Continuing truant. new text end

new text begin "Continuing truant" means a
student under section 260A.02, subdivision 3, who is absent
without valid excuse from instruction in a school.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2005.
new text end

Sec. 83.

Minnesota Statutes 2004, section 260C.201,
subdivision 1, is amended to read:

Subdivision 1.

Dispositions.

(a) If the court finds that
the child is in need of protection or services or neglected and
in foster care, it shall enter an order making any of the
following dispositions of the case:

(1) place the child under the protective supervision of the
responsible social services agency or child-placing agency in
the home of a parent of the child under conditions prescribed by
the court directed to the correction of the child's need for
protection or services:

(i) the court may order the child into the home of a parent
who does not otherwise have legal custody of the child, however,
an order under this section does not confer legal custody on
that parent;

(ii) if the court orders the child into the home of a
father who is not adjudicated, he must cooperate with paternity
establishment proceedings regarding the child in the appropriate
jurisdiction as one of the conditions prescribed by the court
for the child to continue in his home;

(iii) the court may order the child into the home of a
noncustodial parent with conditions and may also order both the
noncustodial and the custodial parent to comply with the
requirements of a case plan under subdivision 2; or

(2) transfer legal custody to one of the following:

(i) a child-placing agency; or

(ii) the responsible social services agency. In placing a
child whose custody has been transferred under this paragraph,
the agencies shall make an individualized determination of how
the placement is in the child's best interests using the
consideration for relatives and the best interest factors in
section 260C.212, subdivision 2, paragraph (b); or

(3) if the child has been adjudicated as a child in need of
protection or services because the child is in need of special
services or care to treat or ameliorate a physical or mental
disability, the court may order the child's parent, guardian, or
custodian to provide it. The court may order the child's health
plan company to provide mental health services to the child.
Section 62Q.535 applies to an order for mental health services
directed to the child's health plan company. If the health
plan, parent, guardian, or custodian fails or is unable to
provide this treatment or care, the court may order it
provided. Absent specific written findings by the court that
the child's disability is the result of abuse or neglect by the
child's parent or guardian, the court shall not transfer legal
custody of the child for the purpose of obtaining special
treatment or care solely because the parent is unable to provide
the treatment or care. If the court's order for mental health
treatment is based on a diagnosis made by a treatment
professional, the court may order that the diagnosing
professional not provide the treatment to the child if it finds
that such an order is in the child's best interests; or

(4) if the court believes that the child has sufficient
maturity and judgment and that it is in the best interests of
the child, the court may order a child 16 years old or older to
be allowed to live independently, either alone or with others as
approved by the court under supervision the court considers
appropriate, if the county board, after consultation with the
court, has specifically authorized this dispositional
alternative for a child.

(b) If the child was adjudicated in need of protection or
services because the child is a runaway new text begin , or is a continuing new text end or
habitual truant, the court may order any of the following
dispositions in addition to or as alternatives to the
dispositions authorized under paragraph (a):

(1) counsel the child or the child's parents, guardian, or
custodian;

(2) place the child under the supervision of a probation
officer or other suitable person in the child's own home under
conditions prescribed by the court, including reasonable rules
for the child's conduct and the conduct of the parents,
guardian, or custodian, designed for the physical, mental, and
moral well-being and behavior of the child; or with the consent
of the commissioner of corrections, place the child in a group
foster care facility which is under the commissioner's
management and supervision;

(3) subject to the court's supervision, transfer legal
custody of the child to one of the following:

(i) a reputable person of good moral character. No person
may receive custody of two or more unrelated children unless
licensed to operate a residential program under sections 245A.01
to 245A.16; or

(ii) a county probation officer for placement in a group
foster home established under the direction of the juvenile
court and licensed pursuant to section 241.021;

(4) require the child to pay a fine of up to $100. The
court shall order payment of the fine in a manner that will not
impose undue financial hardship upon the child;

(5) require the child to participate in a community service
project;

(6) order the child to undergo a chemical dependency
evaluation and, if warranted by the evaluation, order
participation by the child in a drug awareness program or an
inpatient or outpatient chemical dependency treatment program;

(7) if the court believes that it is in the best interests
of the child deleted text begin and deleted text end new text begin or new text end of public safety that the child's driver's
license or instruction permit be canceled, the court may order
the commissioner of public safety to cancel the child's license
or permit for any period up to the child's 18th birthday. If
the child does not have a driver's license or permit, the court
may order a denial of driving privileges for any period up to
the child's 18th birthday. new text begin If the child is a continuing or
habitual truant, the court must cancel the child's driving
privileges. new text end The court shall forward an order issued under this
clause to the commissioner, who shall cancel the license or
permit or deny driving privileges without a hearing for the
period specified by the court. At any time before the
expiration of the period of cancellation or denial, the court
may, for good cause, order the commissioner of public safety to
allow the child to apply for a license or permit, and the
commissioner shall so authorize;

(8) order that the child's parent or legal guardian deliver
the child to school at the beginning of each school day for a
period of time specified by the court; or

(9) require the child to perform any other activities or
participate in any other treatment programs deemed appropriate
by the court.

To the extent practicable, the court shall enter a
disposition order the same day it makes a finding that a child
is in need of protection or services or neglected and in foster
care, but in no event more than 15 days after the finding unless
the court finds that the best interests of the child will be
served by granting a delay. If the child was under eight years
of age at the time the petition was filed, the disposition order
must be entered within ten days of the finding and the court may
not grant a delay unless good cause is shown and the court finds
the best interests of the child will be served by the delay.

(c) If a child who is 14 years of age or older is
adjudicated in need of protection or services because the child
is a habitual truant and truancy procedures involving the child
were previously dealt with by a school attendance review board
or county attorney mediation program under section 260A.06 or
260A.07, the court shall order a cancellation or denial of
driving privileges under paragraph (b), clause (7), for any
period up to the child's 18th birthday.

(d) In the case of a child adjudicated in need of
protection or services because the child has committed domestic
abuse and been ordered excluded from the child's parent's home,
the court shall dismiss jurisdiction if the court, at any time,
finds the parent is able or willing to provide an alternative
safe living arrangement for the child, as defined in Laws 1997,
chapter 239, article 10, section 2.

(e) When a parent has complied with a case plan ordered
under subdivision 6 and the child is in the care of the parent,
the court may order the responsible social services agency to
monitor the parent's continued ability to maintain the child
safely in the home under such terms and conditions as the court
determines appropriate under the circumstances.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2005.
new text end

Sec. 84. new text begin BOARD OF SCHOOL ADMINISTRATORS; RULEMAKING
AUTHORITY.
new text end

new text begin On or before June 30, 2007, the Board of School
Administrators may adopt expedited rules under Minnesota
Statutes, section 14.389, to make technical revisions and
clarifications to Minnesota Rules, chapter 3512.
new text end

Sec. 85. new text begin CAREER AND TECHNICAL EDUCATION PROGRAM RULES.
new text end

new text begin By January 1, 2007, the commissioner of education must
adopt rules for approval of career and technical education
programs consistent with Minnesota Statutes, section 124D.4531,
subdivisions 4 and 6, that emphasize emerging workforce skills.
Program approval for fiscal year 2008 and later must be based on
the rules.
new text end

Sec. 86. new text begin MINNESOTA COMPREHENSIVE ASSESSMENTS; RULES.
new text end

new text begin The commissioner of education shall adopt rules on or
before January 1, 2006, to implement the Minnesota Comprehensive
Assessments Second Edition (MCA-IIs) in reading, mathematics,
and writing. For purposes of state and local high school
graduation requirements, and consistent with applicable federal
and state law, the rules must include criteria and an
alternative assessment process to enable school districts to
accommodate students, including at least students with
disabilities, English language learners, and students performing
below their grade level, who do not receive a passing score on
the Minnesota Comprehensive Assessments Second Edition.
new text end

Sec. 87. new text begin TITLE.
new text end

new text begin Minnesota Statutes, section 120B.25, shall be known as the
American Heritage Education in Minnesota Public Schools Act.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day
following final enactment.
new text end

Sec. 88. new text begin STUDY; SPONSOR EVALUATION AND CHARGES.
new text end

new text begin The Department of Education by December 31, 2005, after
consulting with representatives of charter schools and charter
school sponsors, must submit to the legislature recommendations
on how a charter school sponsor effectively evaluates the
performance of a charter school under Minnesota Statutes,
section 124D.10, subdivision 15, and what annual fees a sponsor
may charge for that evaluation.
new text end

Sec. 89. new text begin MODEL POLICY.
new text end

new text begin The commissioner of education, after consulting with
representatives of teachers, school administrators, parents,
students, student support service providers, law enforcement
officials, community service providers, and the juvenile justice
and district court systems, must develop and make available upon
request to interested school boards a model policy to effect a
reward for information about persons committing crimes against
students, school employees, school volunteers, school board
members, or school property, consistent with section 123B.02,
subdivision 22.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day
following final enactment.
new text end

Sec. 90. new text begin SUPPLEMENTAL AGREEMENTS; ALTERNATIVE TEACHER
PAY.
new text end

new text begin Notwithstanding Minnesota Statutes, section 179A.20, or
other law to the contrary, a school board and the exclusive
representative of the teachers that enter into a collective
bargaining agreement for the period July 1, 2005, to June 30,
2007, before the effective date of this act may enter into a
supplemental agreement solely for the purpose of complying with
the alternative teacher pay provisions under Minnesota Statutes,
sections 122A.414 and 122A.415.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day
following final enactment.
new text end

Sec. 91. new text begin APPROPRIATIONS.
new text end

new text begin Subdivision 1. new text end

new text begin Department. new text end

new text begin The sums indicated in this
section are appropriated from the general fund to the Department
of Education for the fiscal years designated.
new text end

new text begin Subd. 2. new text end

new text begin Charter school building lease aid. new text end

new text begin For building
lease aid under Minnesota Statutes, section 124D.11, subdivision
4:
new text end

new text begin $25,465,000 new text end new text begin ..... new text end new text begin 2006
new text end

new text begin $30,929,000 new text end new text begin ..... new text end new text begin 2007
new text end

new text begin The 2006 appropriation includes $3,324,000 for 2005 and
$22,141,000 for 2006.
new text end

new text begin The 2007 appropriation includes $4,123,000 for 2006 and
$26,806,000 for 2007.
new text end

new text begin Subd. 3. new text end

new text begin Charter school startup aid. new text end

new text begin For charter school
startup cost aid under Minnesota Statutes, section 124D.11:
new text end

new text begin $1,393,000 new text end new text begin ..... new text end new text begin 2006
new text end

new text begin $3,185,000 new text end new text begin ..... new text end new text begin 2007
new text end

new text begin The 2006 appropriation includes $0 for 2005 and $1,393,000
for 2006.
new text end

new text begin The 2007 appropriation includes $259,000 for 2006 and
$2,926,000 for 2007.
new text end

new text begin Subd. 4. new text end

new text begin Integration aid. new text end

new text begin For integration aid under
Minnesota Statutes, section 124D.86, subdivision 5:
new text end

new text begin $57,812,000 new text end new text begin ..... new text end new text begin 2006
new text end

new text begin $57,556,000 new text end new text begin ..... new text end new text begin 2007
new text end

new text begin The 2006 appropriation includes $8,545,000 for 2005 and
$49,267,000 for 2006.
new text end

new text begin The 2007 appropriation includes $9,174,000 for 2006 and
$48,382,000 for 2007.
new text end

new text begin Subd. 5. new text end

new text begin Magnet school grants. new text end

new text begin For magnet school and
program grants:
new text end

new text begin $ 750,000 new text end new text begin ..... new text end new text begin 2006
new text end

new text begin $ 750,000 new text end new text begin ..... new text end new text begin 2007
new text end

new text begin These amounts may be used for magnet school programs under
Minnesota Statutes, section 124D.88.
new text end

new text begin Subd. 6. new text end

new text begin Interdistrict desegregation or integration
transportation grants. new text end

new text begin For interdistrict desegregation or
integration transportation grants under Minnesota Statutes,
section 124D.87:
new text end

new text begin $7,768,000 new text end new text begin ..... new text end new text begin 2006
new text end

new text begin $9,908,000 new text end new text begin ..... new text end new text begin 2007
new text end

new text begin Subd. 7. new text end

new text begin Success for the future. new text end

new text begin For American Indian
success for the future grants under Minnesota Statutes, section
124D.81:
new text end

new text begin $2,137,000 new text end new text begin ..... new text end new text begin 2006
new text end

new text begin $2,137,000 new text end new text begin ..... new text end new text begin 2007
new text end

new text begin The 2006 appropriation includes $335,000 for 2005 and
$1,802,000 for 2006.
new text end

new text begin The 2007 appropriation includes $335,000 for 2006 and
$1,802,000 for 2007.
new text end

new text begin Subd. 8. new text end

new text begin American indian scholarships. new text end

new text begin For American
Indian scholarships under Minnesota Statutes, section 124D.84:
new text end

new text begin $1,875,000 new text end new text begin ..... new text end new text begin 2006
new text end

new text begin $1,875,000 new text end new text begin ..... new text end new text begin 2007
new text end

new text begin Subd. 9. new text end

new text begin American indian teacher preparation grants. new text end

new text begin For
joint grants to assist American Indian people to become teachers
under Minnesota Statutes, section 122A.63:
new text end

new text begin $ 190,000 new text end new text begin ..... new text end new text begin 2006
new text end

new text begin $ 190,000 new text end new text begin ..... new text end new text begin 2007
new text end

new text begin Subd. 10. new text end

new text begin Tribal contract schools. new text end

new text begin For tribal contract
school aid under Minnesota Statutes, section 124D.83:
new text end

new text begin $2,372,000 new text end new text begin ..... new text end new text begin 2006
new text end

new text begin $2,559,000 new text end new text begin ..... new text end new text begin 2007
new text end

new text begin The 2006 appropriation includes $348,000 for 2005 and
$2,024,000 for 2006.
new text end

new text begin The 2007 appropriation includes $376,000 for 2006 and
$2,183,000 for 2007.
new text end

new text begin Subd. 11. new text end

new text begin Early childhood programs at tribal
schools. new text end

new text begin For early childhood family education programs at
tribal contract schools under Minnesota Statutes, section
124D.83, subdivision 4:
new text end

new text begin $ 68,000 new text end new text begin ..... new text end new text begin 2006
new text end

new text begin $ 68,000 new text end new text begin ..... new text end new text begin 2007
new text end

new text begin Subd. 12. new text end

new text begin Statewide testing. new text end

new text begin For statewide testing
support under Minnesota Statutes, section 120B.30:
new text end

new text begin $10,200,000 new text end new text begin ..... new text end new text begin 2006
new text end

new text begin $10,200,000 new text end new text begin ..... new text end new text begin 2007
new text end

new text begin Of this appropriation, $1,200,000 each year is for
development of interactive science assessments.
new text end

new text begin Subd. 13. new text end

new text begin Examination fees; teacher training and support
programs. new text end

new text begin For student examination fees and training and related
costs for teachers and other interested educators under
Minnesota Statutes, section 120B.13:
new text end

new text begin $2,500,000 new text end new text begin ..... new text end new text begin 2006
new text end

new text begin $2,500,000 new text end new text begin ..... new text end new text begin 2007
new text end

new text begin The advanced placement program shall receive 90 percent of
the appropriation each year and the international baccalaureate
program shall receive ten percent of the appropriation each
year. The department, in consultation with representatives of
the advanced placement and international baccalaureate programs
selected by the Advanced Placement Advisory Council and IBMN,
respectively, shall determine the amounts of the expenditures
each year for examination fees and training and support programs.
new text end

new text begin Any balance in the first year does not cancel but is
available in the second year.
new text end

new text begin Subd. 14. new text end

new text begin First grade preparedness. new text end

new text begin For first grade
preparedness grants under Minnesota Statutes, section 124D.081:
new text end

new text begin $7,250,000 new text end new text begin ..... new text end new text begin 2006
new text end

new text begin $7,250,000 new text end new text begin ..... new text end new text begin 2007
new text end

new text begin Subd. 15. new text end

new text begin Collaborative urban educator. new text end

new text begin For the
collaborative urban educator program:
new text end

new text begin $ 528,000 new text end new text begin ..... new text end new text begin 2006
new text end

new text begin $ 528,000 new text end new text begin ..... new text end new text begin 2007
new text end

new text begin Subd. 16. new text end

new text begin Youth works program. new text end

new text begin For funding youth works
programs under Minnesota Statutes, sections 124D.37 to 124D.45:
new text end

new text begin $ 900,000 new text end new text begin ..... new text end new text begin 2006
new text end

new text begin $ 900,000 new text end new text begin ..... new text end new text begin 2007
new text end

new text begin A grantee organization may provide health and child care
coverage to the dependents of each participant enrolled in a
full-time youth works program to the extent such coverage is not
otherwise available.
new text end

new text begin Subd. 17. new text end

new text begin Student organizations. new text end

new text begin For student
organizations:
new text end

new text begin $ 625,000 new text end new text begin ..... new text end new text begin 2006
new text end

new text begin $ 625,000 new text end new text begin ..... new text end new text begin 2007
new text end

new text begin Subd. 18. new text end

new text begin Education planning and assessment program. new text end

new text begin For
the Educational Planning and Assessment (EPAS) program under
Minnesota Statutes, section 120B.128:
new text end

new text begin $ 829,000 new text end new text begin ..... new text end new text begin 2006
new text end

new text begin $ 829,000 new text end new text begin ..... new text end new text begin 2007
new text end

new text begin Subd. 19. new text end [COLLEGE LEVEL EXAMINATION PROGRAM (CLEP).] new text begin For
the College Level Examination program (CLEP) under Minnesota
Statutes, section 120B.131:
new text end

new text begin $ 825,000 new text end new text begin ..... new text end new text begin 2006
new text end

new text begin $1,650,000 new text end new text begin ..... new text end new text begin 2007
new text end

new text begin Subd. 20. new text end

new text begin Career and technical education grants. new text end

new text begin For
career and technical education grants:
new text end

new text begin $1,000,000 new text end new text begin ..... new text end new text begin 2006
new text end

new text begin $1,000,000 new text end new text begin ..... new text end new text begin 2007
new text end

new text begin This appropriation is for grants to school districts to
establish emerging technology demonstration programs for
students in grades 7 through 9. The commissioner shall
prescribe the form and manner of grant applications, and shall
make up to 20 grant awards each year of the biennium. The grant
award process must take into consideration regional
distribution, district instructional history with emerging
technologies, plans to link the program with high school
emerging technology programs, ability to provide local matching
funds, and plans to serve as a demonstration program.
new text end

new text begin Any balance in the first year does not cancel but is
available in the second year. This is a onetime appropriation.
new text end

new text begin Subd. 21. new text end

new text begin Minnesota learning resource center. new text end

new text begin For a
grant to A Chance to Grow/New Visions for the Minnesota Learning
Resource Center's comprehensive training program for education
professionals charged with helping children acquire basic
reading and math skills:
new text end

new text begin $125,000 new text end new text begin ..... new text end new text begin 2006
new text end

new text begin $125,000 new text end new text begin ..... new text end new text begin 2007
new text end

new text begin This is a onetime appropriation.
new text end

new text begin Subd. 22. new text end

new text begin Teacher professional development. new text end

new text begin For a grant
to the Minnesota Humanities Commission to provide content-based
professional development for teachers:
new text end

new text begin $500,000 new text end new text begin ..... new text end new text begin 2006
new text end

new text begin $500,000 new text end new text begin ..... new text end new text begin 2007
new text end

new text begin This is a onetime appropriation.
new text end

new text begin Subd. 23. new text end

new text begin Minnesota historical society. new text end

new text begin For a grant to
the Minnesota Historical Society to provide teacher professional
development:
new text end

new text begin $100,000 new text end new text begin ..... new text end new text begin 2006
new text end

new text begin $100,000 new text end new text begin ..... new text end new text begin 2007
new text end

new text begin This is a onetime appropriation.
new text end

Sec. 92. new text begin REPEALER.
new text end

new text begin (a) Minnesota Statutes 2004, section 124D.095, subdivision
9, is repealed.
new text end

new text begin (b) Minnesota Statutes 2004, section 128C.12, subdivision
4, is repealed.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section, paragraph (a), is effective
for revenue for fiscal year 2006. This section, paragraph (b),
is effective the day following final enactment.
new text end

ARTICLE 3

SPECIAL PROGRAMS

Section 1.

Minnesota Statutes 2004, section 124D.11,
subdivision 5, is amended to read:

Subd. 5.

Special education aid.

new text begin (a) new text end Except as provided
in subdivision 2, special education aid must be paid to a
charter school according to section 125A.76, as though it were a
school district.

new text begin (b) For fiscal year 2006, new text end the charter school may charge
tuition to the district of residence as new text begin follows:
new text end

new text begin (1) if the charter school does not receive general
education revenue on behalf of the student according to
subdivision 1, tuition shall be charged as new text end provided in section
125A.11 new text begin ; or
new text end

new text begin (2) if the charter school receives general education
revenue on behalf of the student according to subdivision 1,
tuition shall be charged as provided in section 127A.47,
subdivision 7, paragraph (d) new text end .

new text begin (c) For fiscal year 2007 and later, the special education
aid paid to the charter school shall be adjusted as follows:
new text end

new text begin (1) if the charter school does not receive general
education revenue on behalf of the student according to
subdivision 1, the aid shall be adjusted as provided in section
125A.11; or
new text end

new text begin (2) if the charter school receives general education
revenue on behalf of the student according to subdivision 1, the
aid shall be adjusted as provided in section 127A.47,
subdivision 7, paragraph (d).
new text end

Sec. 2.

Minnesota Statutes 2004, section 125A.091,
subdivision 5, is amended to read:

Subd. 5.

Initial action; parent consent.

(a) The
district must not proceed with the initial evaluation of a
child, the initial placement of a child in a special education
program, or the initial provision of special education services
for a child without the prior written consent of the child's
parent. A district may not override the written refusal of a
parent to consent to an initial evaluation or reevaluation. new text begin If
a parent refuses to consent to the initial evaluation of a
child, a school district may apply to the child in any
subsequent disciplinary action those provisions of the Pupil
Fair Dismissal Act under sections 121A.40 to 121A.56 applicable
to students without disabilities. A parent's refusal to consent
to an initial evaluation or reevaluation under this paragraph is
not a ground for disciplinary action under sections 121A.40 to
121A.56.
new text end

(b) A parent, after consulting with health care, education,
or other professional providers, may agree or disagree to
provide the parent's child with deleted text begin sympathomimetic medications
deleted text end new text begin psychotropic drugs new text end unless section 144.344 applies.
new text begin "Psychotropic drug" means a substance used in the diagnosis,
treatment or prevention of a disease or as a component of a
medication, and intended to have an altering effect on
perception, emotion, or behavior. School officials must not use
the refusal of a parent or guardian to consent to the
administration of a psychotropic drug to their student or to
consent to a psychiatric evaluation, screening or examination of
the student as a ground, by itself, to prohibit the student from
attending class or participating in a school-related activity,
or as a basis of a charge of child abuse, child neglect, or
medical or educational neglect.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for the
2005-2006 school year and later.
new text end

Sec. 3.

Minnesota Statutes 2004, section 125A.11,
subdivision 1, is amended to read:

Subdivision 1.

Nonresident tuition rate; other costs.

new text begin (a) For fiscal year 2006, new text end when a school district provides
instruction and services outside the district of residence,
board and lodging, and any tuition to be paid, shall be paid by
the district of residence. The tuition rate to be charged for
any child with a disability new text begin , excluding a pupil for whom tuition
is calculated according to section 127A.47, subdivision 7,
paragraph (d), new text end must be the new text begin sum of (1) the new text end actual cost of
providing special instruction and services to the child
including a proportionate amount for deleted text begin capital outlay and debt
service but not including any amount for deleted text end new text begin special new text end transportation
new text begin and unreimbursed building lease and debt service costs for
facilities used primarily for special education, plus (2) the
amount of general education revenue and referendum aid
attributable to the pupil new text end , minus new text begin (3) new text end the amount of special
new text begin education new text end aid for children with a disability received on behalf
of that child new text begin , minus (4) if the pupil receives special
instruction and services outside the regular classroom for more
than 60 percent of the school day, the amount of general
education revenue and referendum aid, excluding portions
attributable to district and school administration, district
support services, operations and maintenance, capital
expenditures, and pupil transportation, attributable to that
pupil for the portion of time the pupil receives instruction in
the regular classroom new text end . If the boards involved do not agree upon
the tuition rate, either board may apply to the commissioner to
fix the rate. new text begin Notwithstanding chapter 14, new text end the commissioner must
then set a date for a hearing new text begin or request a written statement
from each board new text end , giving each board at least ten days' notice,
and after the hearing new text begin or review of the written statements new text end the
commissioner must make an order fixing the tuition rate, which
is binding on both school districts. new text begin General education revenue
and referendum aid attributable to a pupil must be calculated
using the resident district's average general education and
referendum revenue per adjusted pupil unit.
new text end

new text begin (b) For fiscal year 2007 and later, when a school district
provides special instruction and services for a pupil with a
disability as defined in section 125A.02 outside the district of
residence, excluding a pupil for whom an adjustment to special
education aid is calculated according to section 127A.47,
subdivision 7, paragraph (e), special education aid paid to the
resident district must be reduced by an amount equal to (1) the
actual cost of providing special instruction and services to the
pupil, including a proportionate amount for special
transportation and unreimbursed building lease and debt service
costs for facilities used primarily for special education, plus
(2) the amount of general education revenue and referendum aid
attributable to that pupil, minus (3) the amount of special
education aid for children with a disability received on behalf
of that child, minus (4) if the pupil receives special
instruction and services outside the regular classroom for more
than 60 percent of the school day, the amount of general
education revenue and referendum aid, excluding portions
attributable to district and school administration, district
support services, operations and maintenance, capital
expenditures, and pupil transportation, attributable to that
pupil for the portion of time the pupil receives instruction in
the regular classroom. General education revenue and referendum
aid attributable to a pupil must be calculated using the
resident district's average general education revenue and
referendum aid per adjusted pupil unit. Special education aid
paid to the district or cooperative providing special
instruction and services for the pupil must be increased by the
amount of the reduction in the aid paid to the resident
district. Amounts paid to cooperatives under this subdivision
and section 127A.47, subdivision 7, shall be recognized and
reported as revenues and expenditures on the resident school
district's books of account under sections 123B.75 and 123B.76.
If the resident district's special education aid is insufficient
to make the full adjustment, the remaining adjustment shall be
made to other state aid due to the district.
new text end

new text begin (c) Notwithstanding paragraphs (a) and (b) and section
127A.47, subdivision 7, paragraphs (d) and (e), a charter school
where more than 30 percent of enrolled students receive special
education and related services, an intermediate district, or a
special education cooperative may apply to the commissioner for
authority to charge the resident district an additional amount
to recover any remaining unreimbursed costs of serving pupils
with a disability. The application must include a description
of the costs and the calculations used to determine the
unreimbursed portion to be charged to the resident district.
Amounts approved by the commissioner under this paragraph must
be included in the tuition billings or aid adjustments under
paragraph (a) or (b), or section 127A.47, subdivision 7,
paragraph (d) or (e), as applicable.
new text end

Sec. 4.

Minnesota Statutes 2004, section 125A.24, is
amended to read:

125A.24 PARENT ADVISORY COUNCILS.

In order to increase the involvement of parents of children
with disabilities in district policy making and decision making,
school districts must have a special education advisory council
that is incorporated into the district's special education
system plan.

(1) This advisory council may be established either for
individual districts or in cooperation with other districts who
are members of the same special education cooperative.

(2) A district may set up this council as a subgroup of an
existing board, council, or committee.

(3) At least half of the designated council members must be
parents of students with a disability. new text begin The council must include
at least one member who is a parent of a nonpublic school
student with a disability if a nonpublic school is located in
the district. Each local council must meet no less than once
each year. new text end The number of members, frequency of meetings, and
operational procedures are to be locally determined.

Sec. 5.

Minnesota Statutes 2004, section 125A.28, is
amended to read:

125A.28 STATE INTERAGENCY COORDINATING COUNCIL.

An Interagency Coordinating Council of at least 17, but not
more than 25 members is established, in compliance with Public
Law 102-119, section 682. The members must be appointed by the
governor. Council members must elect the council chair. The
representative of the commissioner may not serve as the chair.
The council must be composed of at least five parents, including
persons of color, of children with disabilities under age 12,
including at least three parents of a child with a disability
under age seven, five representatives of public or private
providers of services for children with disabilities under age
five, including a special education director, county social
service director, local Head Start director, and a community
health services or public health nursing administrator, one
member of the senate, one member of the house of
representatives, one representative of teacher preparation
programs in early childhood-special education or other
preparation programs in early childhood intervention, at least
one representative of advocacy organizations for children with
disabilities under age five, one physician who cares for young
children with special health care needs, one representative each
from the commissioners of commerce, education, health, human
services, a representative from the state agency responsible for
child care, and a representative from Indian health services or
a tribal council. Section 15.059, subdivisions 2 to 5, apply to
the council. The council must meet at least quarterly.

The council must address methods of implementing the state
policy of developing and implementing comprehensive,
coordinated, multidisciplinary interagency programs of early
intervention services for children with disabilities and their
families.

The duties of the council include recommending policies to
ensure a comprehensive and coordinated system of all state and
local agency services for children under age five with
disabilities and their families. The policies must address how
to incorporate each agency's services into a unified state and
local system of multidisciplinary assessment practices,
individual intervention plans, comprehensive systems to find
children in need of services, methods to improve public
awareness, and assistance in determining the role of interagency
early intervention committees.

deleted text begin By September 1 deleted text end new text begin On the date that Minnesota Part C Annual
Performance Report is submitted to the federal Office of Special
Education new text end , the council must recommend to the governor and the
commissioners of education, health, human services, commerce,
and employment and economic development policies for a
comprehensive and coordinated system.

Notwithstanding any other law to the contrary, the State
Interagency Coordinating Council expires on June 30, deleted text begin 2005 deleted text end new text begin 2009 new text end .

Sec. 6.

Minnesota Statutes 2004, section 125A.76,
subdivision 1, is amended to read:

Subdivision 1.

Definitions.

For the purposes of this
section, the definitions in this subdivision apply.

(a) "Base year" for fiscal year 1998 and later fiscal years
means the second fiscal year preceding the fiscal year for which
aid will be paid.

(b) "Basic revenue" has the meaning given it in section
126C.10, subdivision 2. For the purposes of computing basic
revenue pursuant to this section, each child with a disability
shall be counted as prescribed in section 126C.05, subdivision 1.

(c) "Essential personnel" means teachers, cultural
liaisons, related services, and support services staff providing
direct services to students. Essential personnel may also
include special education paraprofessionals or clericals
providing support to teachers and students by preparing
paperwork and making arrangements related to special education
compliance requirements, including parent meetings and
individual education plans.

(d) "Average daily membership" has the meaning given it in
section 126C.05.

(e) "Program growth factor" means deleted text begin 1.046 deleted text end new text begin 1.04 new text end for fiscal
deleted text begin year 2003 deleted text end new text begin years 2007 and 2008 new text end , and 1.0 for fiscal year deleted text begin 2004 deleted text end new text begin 2009
new text end and later.

Sec. 7.

Minnesota Statutes 2004, section 125A.76,
subdivision 4, is amended to read:

Subd. 4.

State total special education aid.

deleted text begin The state
total special education aid for fiscal year 2004 equals
$530,642,000. deleted text end The state total special education aid for fiscal
year 2005 equals $529,164,000. The state total special
education aid for later fiscal years equals:

(1) the state total special education aid for the preceding
fiscal year; times

(2) deleted text begin the program growth factor; times
deleted text end

deleted text begin (3) deleted text end the ratio of the state total average daily membership
for the current fiscal year to the state total average daily
membership for the preceding fiscal year.

Sec. 8.

Minnesota Statutes 2004, section 125A.76, is
amended by adding a subdivision to read:

new text begin Subd. 5a. new text end

new text begin Special education levy revenue. new text end

new text begin (a) For fiscal
year 2007, the state total special education revenue equals the
state total special education aid times the program growth
factor. For fiscal year 2008 and later, the state total special
education revenue equals:
new text end

new text begin (1) the state total special education revenue for the
preceding fiscal year, times
new text end

new text begin (2) the program growth factor, times
new text end

new text begin (3) the ratio of the state total average daily membership
for the current fiscal year to the state total average daily
membership for the preceding fiscal year.
new text end

new text begin (b) For fiscal year 2007 and later, the state total special
education levy revenue equals the difference between the state
total special education revenue and the state total special
education aid.
new text end

new text begin (c) For fiscal year 2007 and later, the special education
levy revenue for a school district, charter school, or state
academy equals the product of the state total special education
levy revenue times the ratio of the school district, charter
school, or state academy's special education aid to the state
total special education aid.
new text end

Sec. 9.

Minnesota Statutes 2004, section 125A.76, is
amended by adding a subdivision to read:

new text begin Subd. 5b. new text end

new text begin Special education levy. new text end

new text begin To obtain special
education levy revenue for fiscal year 2007 and later, a
district may levy an amount not more than the product of its
special education levy revenue for the fiscal year times the
lesser of one or the ratio of its adjusted net tax capacity per
adjusted pupil unit to $5,913.
new text end

Sec. 10.

Minnesota Statutes 2004, section 125A.76, is
amended by adding a subdivision to read:

new text begin Subd. 5c. new text end

new text begin Special education levy equalization aid. new text end

new text begin (a)
For fiscal year 2007 and later, a school district's special
education levy equalization aid equals its special education
levy equalization revenue minus its special education levy times
the ratio of the actual amount levied to the permitted levy.
new text end

new text begin (b) The special education levy equalization aid for a
charter school or a state academy equals the charter school or
state academy's special education levy revenue.
new text end

Sec. 11.

Minnesota Statutes 2004, section 125A.79,
subdivision 1, is amended to read:

Subdivision 1.

Definitions.

For the purposes of this
section, the definitions in this subdivision apply.

(a) "Unreimbursed special education cost" means the sum of
the following:

(1) expenditures for teachers' salaries, contracted
services, supplies, equipment, and transportation services
eligible for revenue under section 125A.76; plus

(2) expenditures for tuition bills received under sections
125A.03 to 125A.24 and 125A.65 for services eligible for revenue
under section 125A.76, subdivision 2; minus

(3) revenue for teachers' salaries, contracted services,
supplies, and equipment under section 125A.76; minus

(4) tuition receipts under sections 125A.03 to 125A.24 and
125A.65 for services eligible for revenue under section 125A.76,
subdivision 2.

(b) deleted text begin "General revenue" means for fiscal year 1996, the sum
of the general education revenue according to section 126C.10,
subdivision 1, as adjusted according to section 127A.47,
subdivision 7, plus the total referendum revenue according to
section 126C.17, subdivision 4. For fiscal years 1997 and
later, deleted text end "General revenue" means the sum of the general education
revenue according to section 126C.10, subdivision 1, as adjusted
according to section 127A.47, subdivisions 7 and 8, deleted text begin plus the
total referendum revenue deleted text end minus transportation sparsity revenue
minus total operating capital revenue.

(c) "Average daily membership" has the meaning given it in
section 126C.05.

(d) "Program growth factor" means 1.02 for fiscal year
2003, and 1.0 for fiscal year 2004 and later.

Sec. 12.

Minnesota Statutes 2004, section 125A.79,
subdivision 5, is amended to read:

Subd. 5.

Initial excess cost aid new text begin ; fiscal years 2004 and
2005 new text end .

For fiscal years deleted text begin 2002 deleted text end new text begin 2004 new text end and deleted text begin later deleted text end new text begin 2005 new text end , a district's
initial excess cost aid equals the greatest of:

(1) 75 percent of the difference between (i) the district's
unreimbursed special education cost and (ii) 4.36 percent of the
district's general revenue;

(2) 70 percent of the difference between (i) the increase
in the district's unreimbursed special education cost between
the base year as defined in section 125A.76, subdivision 1, and
the current year and (ii) 1.6 percent of the district's general
revenue; or

(3) zero.

Sec. 13.

Minnesota Statutes 2004, section 125A.79, is
amended by adding a subdivision to read:

new text begin Subd. 5a. new text end

new text begin Initial excess cost aid. new text end

new text begin For fiscal years 2006
and later, a district's initial excess cost aid equals the
greater of:
new text end

new text begin (1) 75 percent of the difference between (i) the district's
unreimbursed special education cost for the previous fiscal
year, and (ii) 4.36 percent of the district's general revenue
for the previous fiscal year; or
new text end

new text begin (2) zero.
new text end

Sec. 14.

Minnesota Statutes 2004, section 125A.79, is
amended by adding a subdivision to read:

new text begin Subd. 5b. new text end

new text begin Supplemental excess cost aid. new text end

new text begin (a) For fiscal
years 2006 and later, a district's supplemental excess cost aid
equals the greater of:
new text end

new text begin (1) 75 percent of the difference between (i) the increase
in the district's unreimbursed special education excess cost
between the previous fiscal year and the current fiscal year,
and (ii) $80 times the district's adjusted marginal cost pupil
units for the current fiscal year; or
new text end

new text begin (2) zero.
new text end

new text begin (b) The state total supplemental excess cost aid for any
fiscal year must not exceed $2,000,000. If the state total
supplemental excess cost aid according to paragraph (a) exceeds
$2,000,000, the supplemental excess cost aid for each district
shall be reduced proportionately so that the state total equals
$2,000,000.
new text end

Sec. 15.

Minnesota Statutes 2004, section 125A.79,
subdivision 6, is amended to read:

Subd. 6.

State total special education excess cost aid.

deleted text begin The state total special education excess cost aid for fiscal
year 2004 equals $92,067,000. deleted text end The state total special education
new text begin excess cost new text end aid for fiscal year 2005 equals $91,811,000. new text begin The
state total special education excess cost aid for fiscal year
2006 equals $102,746,000. new text end The state total special education
excess cost aid for fiscal year deleted text begin 2006 deleted text end new text begin 2007 new text end and later fiscal years
equals:

(1) the state total special education excess cost aid for
the preceding fiscal year; times

(2) the program growth factor; times

(3) the ratio of the state total average daily membership
for the current fiscal year to the state total average daily
membership for the preceding fiscal year.

Sec. 16.

Minnesota Statutes 2004, section 125A.79,
subdivision 7, is amended to read:

Subd. 7.

District special education excess cost aid.

new text begin (a)
new text end A district's special education excess cost aid for fiscal deleted text begin year
2002 and later deleted text end new text begin years 2004 and 2005 new text end equals the state total
special education excess cost aid times the ratio of the
district's initial excess cost aid to the state total initial
excess cost aid.

new text begin (b) A district's special education excess cost aid for
fiscal year 2006 and later equals the sum of:
new text end

new text begin (1) the product of the difference between the state total
special education excess cost aid and the state total
supplemental excess cost aid times the ratio of the district's
initial excess cost aid to the state total initial excess cost
aid; and
new text end

new text begin (2) the district's supplemental excess cost aid according
to subdivision 5b.
new text end

Sec. 17.

Minnesota Statutes 2004, section 127A.45,
subdivision 13, is amended to read:

Subd. 13.

Aid payment percentage.

Except as provided in
subdivisions 11, 12, 12a, and 14, each fiscal year, all
education aids and credits in this chapter and chapters 120A,
120B, 121A, 122A, 123A, 123B, 124D, 125A, 125B, 126C, 134, and
section 273.1392, shall be paid at deleted text begin 80 percent deleted text end new text begin the current year
aid payment percentage new text end of the estimated entitlement during the
fiscal year of the entitlement. For the purposes of this
subdivision, a district's estimated entitlement for special
education excess cost aid under section 125A.79 new text begin for fiscal year
2005 new text end equals 70 percent of the district's entitlement for the
second prior fiscal year. new text begin For the purposes of this subdivision,
a district's estimated entitlement for special education excess
cost aid under section 125A.79 for fiscal year 2006 and later
equals 75.5 percent of the district's entitlement for the
current fiscal year. new text end The final adjustment payment, according to
subdivision 9, must be the amount of the actual entitlement,
after adjustment for actual data, minus the payments made during
the fiscal year of the entitlement.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day
following final enactment and applies to aid payments for fiscal
year 2005 and later.
new text end

Sec. 18.

Minnesota Statutes 2004, section 127A.47,
subdivision 7, is amended to read:

Subd. 7.

Alternative attendance programs.

The general
education aid new text begin and special education aid new text end for districts must be
adjusted for each pupil attending a nonresident district under
sections 123A.05 to 123A.08, 124D.03, 124D.06, 124D.08, and
124D.68. The adjustments must be made according to this
subdivision.

(a) General education aid paid to a resident district must
be reduced by an amount equal to the referendum equalization aid
attributable to the pupil in the resident district.

(b) General education aid paid to a district serving a
pupil in programs listed in this subdivision must be increased
by an amount equal to the referendum equalization aid
attributable to the pupil in the nonresident district.

(c) If the amount of the reduction to be made from the
general education aid of the resident district is greater than
the amount of general education aid otherwise due the district,
the excess reduction must be made from other state aids due the
district.

(d) new text begin For fiscal year 2006, new text end the district of residence must
pay tuition to a district or an area learning center, operated
according to paragraph deleted text begin (e) deleted text end new text begin (f) new text end , providing special instruction
and services to a pupil with a disability, as defined in section
125A.02, or a pupil, as defined in section 125A.51, who is
enrolled in a program listed in this subdivision. The tuition
must be equal to (1) the actual cost of providing special
instruction and services to the pupil, including a proportionate
amount for deleted text begin debt service and for capital expenditure facilities
and equipment, and debt service but not including any amount for
deleted text end new text begin special new text end transportation new text begin and unreimbursed building lease and debt
service costs for facilities used primarily for special
education new text end , minus (2) new text begin if the pupil receives special instruction
and services outside the regular classroom for more than 60
percent of the school day, new text end the amount of general education
revenue and new text begin referendum aid attributable to that pupil for the
portion of time the pupil receives special instruction and
services outside of the regular classroom, excluding portions
attributable to district and school administration, district
support services, operations and maintenance, capital
expenditures, and pupil transportation, minus (3) new text end special
education aid deleted text begin but not including any amount for transportation,
deleted text end attributable to that pupil, that is received by the district
providing special instruction and services. new text begin For purposes of
this paragraph, general education revenue and referendum aid
attributable to a pupil must be calculated using the serving
district's average general education revenue and referendum aid
per adjusted pupil unit.
new text end

(e) new text begin For fiscal year 2007 and later, special education aid
paid to a resident district must be reduced by an amount equal
to (1) the actual cost of providing special instruction and
services, including special transportation and unreimbursed
building lease and debt service costs for facilities used
primarily for special education, for a pupil with a disability,
as defined in section 125A.02, or a pupil, as defined in section
125A.51, who is enrolled in a program listed in this
subdivision, minus (2) if the pupil receives special instruction
and services outside the regular classroom for more than 60
percent of the school day, the amount of general education
revenue and referendum aid attributable to that pupil for the
portion of time the pupil receives special instruction and
services outside of the regular classroom, excluding portions
attributable to district and school administration, district
support services, operations and maintenance, capital
expenditures, and pupil transportation, minus (3) special
education aid attributable to that pupil, that is received by
the district providing special instruction and services. For
purposes of this paragraph, general education revenue and
referendum aid attributable to a pupil must be calculated using
the serving district's average general education revenue and
referendum aid per adjusted pupil unit. Special education aid
paid to the district or cooperative providing special
instruction and services for the pupil must be increased by the
amount of the reduction in the aid paid to the resident
district. If the resident district's special education aid is
insufficient to make the full adjustment, the remaining
adjustment shall be made to other state aids due to the district.
new text end

new text begin (f) new text end An area learning center operated by a service
cooperative, intermediate district, education district, or a
joint powers cooperative may elect through the action of the
constituent boards to charge the resident district tuition for
pupils rather than to have the general education revenue paid to
a fiscal agent school district. Except as provided in paragraph
(d) new text begin or (e) new text end , the district of residence must pay tuition equal to
at least 90 percent of the district average general education
revenue per pupil unit minus an amount equal to the product of
the formula allowance according to section 126C.10, subdivision
2, times .0485, calculated without basic skills revenue and
transportation sparsity revenue, times the number of pupil units
for pupils attending the area learning center, plus the amount
of compensatory revenue generated by pupils attending the area
learning center.

Sec. 19.

Minnesota Statutes 2004, section 134.31, is
amended by adding a subdivision to read:

new text begin Subd. 5a. new text end

new text begin Advisory committee. new text end

new text begin The commissioner shall
appoint an advisory committee of five members to advise the
staff of the Minnesota Library for the Blind and Physically
Handicapped on long-range plans and library services. Members
shall be people who use the library. Section 15.059 governs
this committee except that the committee shall not expire.
new text end

Sec. 20.

Laws 2003, First Special Session chapter 9,
article 3, section 20, subdivision 6, as amended by Laws 2004,
chapter 272, article 1, section 16, is amended to read:

Subd. 6.

Special education; excess costs.

For excess
cost aid under Minnesota Statutes, section 125A.79, subdivision
7:

$92,605,000 ..... 2004

deleted text begin $92,799,000 deleted text end new text begin $95,572,000 new text end ..... 2005

The 2004 appropriation includes $41,754,000 for 2003 and
$50,851,000 for 2004.

The 2005 appropriation includes $41,216,000 for 2004 and
deleted text begin $51,583,000 deleted text end new text begin $54,356,000 new text end for 2005.

new text begin Of the state total excess cost aid for fiscal year 2005,
$150,000 shall be paid to Independent School District No. 2580,
East Central, for unfunded special education costs that would
otherwise be cross-subsidized with general education aid. For
purposes of Minnesota Statutes, section 125A.79, subdivision 7,
the state total excess cost aid used in calculating district
special education excess cost aid must be reduced by the amount
paid to Independent School District No. 2580, East Central.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day
following final enactment.
new text end

Sec. 21. new text begin TASK FORCE ON DELIVERY OF SPECIAL EDUCATION TO
NONPUBLIC SCHOOL STUDENTS BY PUBLIC SCHOOL DISTRICTS.
new text end

new text begin Subdivision 1. new text end

new text begin Purpose; establishment. new text end

new text begin A task force on
the delivery of special education services to nonpublic school
students by public school districts shall be established to
compare and evaluate how the individual needs of each child are
being met, if services are provided in the least restrictive
environment, and whether best practices and program efficiencies
are being used in the specific areas of transportation, location
of services, and shared time aid.
new text end

new text begin Subd. 2. new text end

new text begin Members. new text end

new text begin The governor shall appoint the members
of the task force from each of the following:
new text end

new text begin (1) two members from the Department of Education, one
representing special education programs and policy and one
representing district finances;
new text end

new text begin (2) two special education teachers with one member from a
public school and one member from a nonpublic school;
new text end

new text begin (3) two special education administrators with one member
from a public school and one member from a nonpublic school;
new text end

new text begin (4) two members with one from each of two special education
advocacy organizations;
new text end

new text begin (5) two parents of children receiving special education
services with one member from a public school and one member
from a nonpublic school;
new text end

new text begin (6) two elementary school principals with one member from a
public school and one member from a nonpublic school;
new text end

new text begin (7) two superintendents with one member from a public
school district and one member from a nonpublic school district;
new text end

new text begin (8) two school business officials with one from a public
school and one from a nonpublic school; and
new text end

new text begin (9) two school board officials with one from a public
school and one from a nonpublic school.
new text end

new text begin The task force may select additional members to work on the
task force. The commissioner of education shall provide
necessary materials and assistance.
new text end

new text begin Subd. 3. new text end

new text begin Report. new text end

new text begin The task force shall submit a report by
January 15, 2006, to the house of representatives and senate
committees having jurisdiction over education on the delivery of
special education services to nonpublic school students by
public school districts, to compare and evaluate how the
individual needs of each child are being met in the least
restrictive environment, and whether best practices and program
efficiencies are being used.
new text end

new text begin Subd. 4. new text end

new text begin Expiration. new text end

new text begin This section expires January 31,
2006.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day
following final enactment.
new text end

Sec. 22. new text begin APPROPRIATIONS.
new text end

new text begin Subdivision 1. new text end

new text begin Department of education. new text end

new text begin The sums
indicated in this section are appropriated from the general fund
to the Department of Education for the fiscal years designated.
new text end

new text begin Subd. 2. new text end

new text begin Special education; regular. new text end

new text begin For special
education aid under Minnesota Statutes, section 125A.75:
new text end

new text begin $528,846,000 new text end new text begin ..... new text end new text begin 2006
new text end

new text begin $527,446,000 new text end new text begin ..... new text end new text begin 2007
new text end

new text begin The 2006 appropriation includes $83,078,000 for 2005 and
$445,768,000 for 2006.
new text end

new text begin The 2007 appropriation includes $83,019,000 for 2006 and
$444,427,000 for 2007.
new text end

new text begin Subd. 3. new text end

new text begin Special education; regular equalization
aid. new text end

new text begin For special education regular equalization aid:
new text end

new text begin $2,176,000 new text end new text begin ..... new text end new text begin 2007
new text end

new text begin The 2007 appropriation includes $0 for 2006 and $2,176,000
for 2007.
new text end

new text begin Subd. 4. new text end

new text begin Aid for children with disabilities. new text end

new text begin For aid
under Minnesota Statutes, section 125A.75, subdivision 3, for
children with disabilities placed in residential facilities
within the district boundaries for whom no district of residence
can be determined:
new text end

new text begin $2,212,000 new text end new text begin ..... new text end new text begin 2006
new text end

new text begin $2,615,000 new text end new text begin ..... new text end new text begin 2007
new text end

new text begin If the appropriation for either year is insufficient, the
appropriation for the other year is available.
new text end

new text begin Subd. 5. new text end

new text begin Travel for home-based services. new text end

new text begin For aid for
teacher travel for home-based services under Minnesota Statutes,
section 125A.75, subdivision 1:
new text end

new text begin $ 187,000 new text end new text begin ..... new text end new text begin 2006
new text end

new text begin $ 195,000 new text end new text begin ..... new text end new text begin 2007
new text end

new text begin The 2006 appropriation includes $28,000 for 2005 and
$159,000 for 2006.
new text end

new text begin The 2007 appropriation includes $29,000 for 2006 and
$166,000 for 2007.
new text end

new text begin Subd. 6. new text end

new text begin Special education; excess costs. new text end

new text begin For excess
cost aid under Minnesota Statutes, section 125A.79, subdivision
7:
new text end

new text begin $102,782,000 new text end new text begin ..... new text end new text begin 2006
new text end

new text begin $102,483,000 new text end new text begin ..... new text end new text begin 2007
new text end

new text begin The 2006 appropriation includes $37,455,000 for 2005 and
$65,327,000 for 2006.
new text end

new text begin The 2007 appropriation includes $37,339,000 for 2006 and
$65,144,000 for 2007.
new text end

new text begin Subd. 7. new text end

new text begin Litigation costs for special education. new text end

new text begin For
paying the costs a district incurs under Minnesota Statutes,
section 125A.75, subdivision 8:
new text end

new text begin $ 17,000 new text end new text begin ..... new text end new text begin 2006
new text end

new text begin $ 17,000 new text end new text begin ..... new text end new text begin 2007
new text end

new text begin Subd. 8. new text end

new text begin Transition for disabled students. new text end

new text begin For aid for
transition programs for children with disabilities under
Minnesota Statutes, section 124D.454:
new text end

new text begin $8,788,000 new text end new text begin ..... new text end new text begin 2006
new text end

new text begin $8,765,000 new text end new text begin ..... new text end new text begin 2007
new text end

new text begin The 2006 appropriation includes $1,380,000 for 2005 and
$7,408,000 for 2006.
new text end

new text begin The 2007 appropriation includes $1,379,000 for 2006 and
$7,386,000 for 2007.
new text end

new text begin Subd. 9. new text end

new text begin Court-placed special education revenue. new text end

new text begin For
reimbursing serving school districts for unreimbursed eligible
expenditures attributable to children placed in the serving
school district by court action under Minnesota Statutes,
section 125A.79, subdivision 4:
new text end

new text begin $ 65,000 new text end new text begin ..... new text end new text begin 2006
new text end

new text begin $ 70,000 new text end new text begin ..... new text end new text begin 2007
new text end

new text begin Subd. 10. new text end

new text begin Out-of-state tuition special education. new text end

new text begin For
special education out-of-state tuition according to Minnesota
Statutes, section 125A.79, subdivision 8:
new text end

new text begin $ 250,000 new text end new text begin ..... new text end new text begin 2006
new text end

new text begin $ 250,000 new text end new text begin ..... new text end new text begin 2007
new text end

ARTICLE 4

FACILITIES AND TECHNOLOGY

Section 1.

Minnesota Statutes 2004, section 123B.53,
subdivision 1, is amended to read:

Subdivision 1.

Definitions.

(a) For purposes of this
section, the eligible debt service revenue of a district is
defined as follows:

(1) the amount needed to produce between five and six
percent in excess of the amount needed to meet when due the
principal and interest payments on the obligations of the
district for eligible projects according to subdivision 2,
including the amounts necessary for repayment of energy loans
according to section 216C.37 or sections 298.292 to 298.298,
debt service loans and capital loans, lease purchase payments
under section 126C.40, subdivision 2, alternative facilities
levies under section 123B.59, subdivision 5, minus

(2) the amount of debt service excess levy reduction for
that school year calculated according to the procedure
established by the commissioner.

(b) The obligations in this paragraph are excluded from
eligible debt service revenue:

(1) obligations under section 123B.61;

(2) the part of debt service principal and interest paid
from the taconite environmental protection fund or northeast
Minnesota economic protection trust;

(3) obligations issued under Laws 1991, chapter 265,
article 5, section 18, as amended by Laws 1992, chapter 499,
article 5, section 24; and

(4) obligations under section 123B.62.

(c) For purposes of this section, if a preexisting school
district reorganized under sections 123A.35 to 123A.43, 123A.46,
and 123A.48 is solely responsible for retirement of the
preexisting district's bonded indebtedness, capital loans or
debt service loans, debt service equalization aid must be
computed separately for each of the preexisting districts.

new text begin (d) For purposes of this section, the adjusted net tax
capacity determined according to section 127A.48 shall be
adjusted to include a portion of the tax capacity of property
generally exempted from ad valorem taxes under section 272.02,
subdivisions 64 and 65, equal to the product of that tax
capacity times the ratio of the eligible debt service revenue
attributed to general obligation bonds to the total eligible
debt service revenue of the district.
new text end

Sec. 2.

Minnesota Statutes 2004, section 123B.54, is
amended to read:

123B.54 DEBT SERVICE APPROPRIATION.

(a) deleted text begin $28,367,000 deleted text end new text begin $21,624,000 new text end in fiscal year deleted text begin 2006 deleted text end new text begin 2008 new text end and
deleted text begin $25,560,000 deleted text end new text begin $20,403,000 new text end in fiscal year deleted text begin 2007 deleted text end new text begin 2009 new text end and later are
appropriated from the general fund to the commissioner of
education for payment of debt service equalization aid under
section 123B.53.

(b) The appropriations in paragraph (a) must be reduced by
the amount of any money specifically appropriated for the same
purpose in any year from any state fund.

Sec. 3.

Minnesota Statutes 2004, section 123B.59,
subdivision 3, is amended to read:

Subd. 3.

Bond authorization.

(a) A school district may
issue general obligation bonds under this section to finance
facilities plans approved by its board and the commissioner.
Chapter 475, except sections 475.58 and 475.59, must be complied
with. The district may levy under subdivision 5 for the debt
service revenue. The authority to issue bonds under this
section is in addition to any bonding authority authorized by
this chapter, or other law. The amount of bonding authority
authorized under this section must be disregarded in calculating
the bonding or net debt limits of this chapter, or any other law
other than section 475.53, subdivision 4.

(b) new text begin At least 20 days new text end before deleted text begin a district issues bonds deleted text end new text begin the
earliest of solicitation of bids, the issuance of bonds, or the
final certification of levies new text end under deleted text begin this deleted text end subdivision new text begin 5 new text end , deleted text begin it deleted text end new text begin the
district new text end must publish notice of the intended projects, the
amount of the bond issue, deleted text begin and deleted text end the total amount of district
indebtedness new text begin , and the commissioner's review and comment, if
applicable new text end .

Sec. 4.

Minnesota Statutes 2004, section 123B.59,
subdivision 3a, is amended to read:

Subd. 3a.

Levy authorization.

(a) A school district may
levy under this section to finance the portion of facilities
plans approved by its board and the commissioner that are not
financed through bond issues according to subdivision 3.

(b) new text begin At least 20 days new text end before a new text begin final new text end district new text begin certification
of new text end levies under deleted text begin this deleted text end subdivision new text begin 5 new text end , deleted text begin it deleted text end new text begin the district new text end must
publish notice of the intended projects, including the total
estimated project cost new text begin , and the commissioner's review and
comment, if applicable new text end .

Sec. 5.

Minnesota Statutes 2004, section 123B.63,
subdivision 2, is amended to read:

Subd. 2.

Uses of the account.

Money in the capital
project referendum account must be used new text begin only new text end for new text begin the purposes
specified in section 126C.10, subdivision 14, for operating
capital revenue, including new text end the costs of acquisition and
betterment for a project that has been reviewed under section
123B.71 and has been approved according to subdivision 3.

Sec. 6.

new text begin [123B.591] DEFERRED MAINTENANCE REVENUE.
new text end

new text begin Subdivision 1. new text end

new text begin Eligibility. new text end

new text begin (a) An independent or
special school district that does not qualify to participate in
the alternative facilities bonding and levy under section
123B.59, subdivision 1, paragraph (a), is eligible to receive
deferred maintenance revenue.
new text end

new text begin (b) Deferred maintenance revenue is subject to reverse
referendum according to section 126C.48, subdivision 9.
new text end

new text begin Subd. 2. new text end

new text begin Deferred maintenance revenue. new text end

new text begin The deferred
maintenance revenue for an eligible school district equals the
product of $45 times the adjusted marginal cost pupil units for
the school year times the lesser of one or the ratio of the
district's average age of building space to 35 years.
new text end

new text begin Subd. 3. new text end

new text begin Deferred maintenance levy. new text end

new text begin To obtain deferred
maintenance revenue for fiscal year 2007 and later, a district
may levy an amount not more than the product of its deferred
maintenance revenue for the fiscal year times the lesser of one
or the ratio of its adjusted net tax capacity per adjusted
marginal cost pupil unit to $5,913.
new text end

new text begin Subd. 4. new text end

new text begin Deferred maintenance aid. new text end

new text begin For fiscal year 2007
and later, a district's deferred maintenance aid equals its
deferred maintenance revenue minus its deferred maintenance levy
times the ratio of the actual amount levied to the permitted
levy.
new text end

new text begin Subd. 5. new text end

new text begin Reserve account. new text end

new text begin Deferred maintenance revenue
must be maintained in a reserve account within the general fund.
Deferred maintenance revenue may be used only for expenditures
that would be eligible for alternative facilities bonding and
levy revenue under section 123B.59, subdivision 2, paragraph
(a), if the district qualified for that revenue under section
123B.59, subdivision 1, paragraph (a).
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for revenue for
fiscal year 2007.
new text end

Sec. 7.

Minnesota Statutes 2004, section 123B.71,
subdivision 8, is amended to read:

Subd. 8.

Review and comment.

A school district, a
special education cooperative, or a cooperative unit of
government, as defined in section 123A.24, subdivision 2, must
not initiate an installment contract for purchase or a lease
agreement, hold a referendum for bonds, nor solicit bids for new
construction, expansion, or remodeling of an educational
facility that requires an expenditure in excess of $500,000 per
school site prior to review and comment by the commissioner.
The commissioner may exempt a facility maintenance project
funded with general education aid and levy new text begin , alternative
facilities bonding and levy program, new text end or health and safety
revenue from this provision after reviewing a written request
from a school district describing the scope of work. A school
board shall not separate portions of a single project into
components to avoid the requirements of this subdivision.

Sec. 8.

Minnesota Statutes 2004, section 123B.71,
subdivision 9, is amended to read:

Subd. 9.

Information required.

A school board proposing
to construct a facility described in subdivision 8 shall submit
to the commissioner a proposal containing information including
at least the following:

(1) the geographic area and population to be served,
preschool through grade 12 student enrollments for the past five
years, and student enrollment projections for the next five
years;

(2) a list of existing facilities by year constructed,
their uses, and an assessment of the extent to which alternate
facilities are available within the school district boundaries
and in adjacent school districts;

(3) a list of the specific deficiencies of the facility
that demonstrate the need for a new or renovated facility to be
provided, and a list of the specific benefits that the new or
renovated facility will provide to the students, teachers, and
community users served by the facility;

(4) the relationship of the project to any priorities
established by the school district, educational cooperatives
that provide support services, or other public bodies in the
service area;

(5) a specification of how the project will increase
community use of the facility and whether and how the project
will increase collaboration with other governmental or nonprofit
entities;

(6) a description of the project, including the
specification of site and outdoor space acreage and square
footage allocations for classrooms, laboratories, and support
spaces; estimated expenditures for the major portions of the
project; and the dates the project will begin and be completed;

(7) a specification of the source of financing the project;
the scheduled date for a bond issue or school board action; a
schedule of payments, including debt service equalization aid;
and the effect of a bond issue on local property taxes by the
property class and valuation;

(8) an analysis of how the proposed new or remodeled
facility will affect school district operational or
administrative staffing costs, and how the district's operating
budget will cover any increased operational or administrative
staffing costs;

(9) a description of the consultation with local or state
road and transportation officials on school site access and
safety issues, and the ways that the project will address those
issues;

(10) a description of how indoor air quality issues have
been considered and a certification that the architects and
engineers designing the facility will have professional
liability insurance;

(11) as required under section 123B.72, for buildings
coming into service after July 1, 2002, a certification that the
plans and designs for the extensively renovated or new
facility's heating, ventilation, and air conditioning systems
will meet or exceed code standards; will provide for the
monitoring of outdoor airflow and total airflow of ventilation
systems; and will provide an indoor air quality filtration
system that meets ASHRAE standard 52.1;

(12) a specification of any desegregation requirements that
cannot be met by any other reasonable means; deleted text begin and
deleted text end

(13) a specification, if applicable, of how the facility
will utilize environmentally sustainable school facility design
concepts new text begin ; and
new text end

new text begin (14) a description of how the architects and engineers have
considered the American National Standards Institute Acoustical
Performance Criteria, Design Requirements and Guidelines for
Schools of the maximum background noise level and reverberation
times new text end .

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2006.
new text end

Sec. 9.

Minnesota Statutes 2004, section 123B.71,
subdivision 12, is amended to read:

Subd. 12.

Publication.

new text begin (a) new text end At least 20 days but not more
than 60 days before a referendum for bonds or solicitation of
bids for a project that has received a positive or unfavorable
review and comment under section 123B.70, the school board shall
publish the commissioner's review and comment of that project in
the legal newspaper of the district. Supplementary information
shall be available to the public.

new text begin (b) The publication requirement in paragraph (a) does not
apply to alternative facilities projects approved under section
123B.59. Publication for alternative facilities projects shall
be as specified in section 123B.59, subdivisions 3 and 3a.
new text end

Sec. 10.

new text begin [125B.26] TELECOMMUNICATIONS/INTERNET ACCESS
EQUITY AID.
new text end

new text begin Subdivision 1. new text end

new text begin Costs to be submitted. new text end

new text begin (a) A district or
charter school shall submit its actual
telecommunications/Internet access costs for the previous fiscal
year, adjusted for any e-rate revenue received, to the
department by August 15 of each year as prescribed by the
commissioner. Costs eligible for reimbursement under this
program are limited to the following:
new text end

new text begin (1) ongoing or recurring telecommunications/Internet access
costs associated with Internet access, data lines, and video
links providing:
new text end

new text begin (i) the equivalent of one data line, video link, or
integrated data/video link that relies on a transport medium
that operates at a minimum speed of 1.544 megabytes per second
(T1) for each elementary school, middle school, or high school
under section 120A.05, subdivisions 9, 11, and 13, including the
recurring telecommunications line lease costs and ongoing
Internet access service fees; or
new text end

new text begin (ii) the equivalent of one data line or video circuit, or
integrated data/video link that relies on a transport medium
that operates at a minimum speed of 1.544 megabytes per second
(T1) for each district, including recurring telecommunications
line lease costs and ongoing Internet access service fees;
new text end

new text begin (2) recurring costs of contractual or vendor-provided
maintenance on the school district's wide area network to the
point of presence at the school building up to the router,
codec, or other service delivery equipment located at the point
of presence termination at the school or school district;
new text end

new text begin (3) recurring costs of cooperative, shared arrangements for
regional delivery of telecommunications/Internet access between
school districts, postsecondary institutions, and public
libraries including network gateways, peering points, regional
network infrastructure, Internet2 access, and network support,
maintenance, and coordination; and
new text end

new text begin (4) service provider installation fees for installation of
new telecommunications lines or increased bandwidth.
new text end

new text begin (b) Costs not eligible for reimbursement under this program
include:
new text end

new text begin (1) recurring costs of school district staff providing
network infrastructure support;
new text end

new text begin (2) recurring costs associated with voice and standard
telephone service;
new text end

new text begin (3) costs associated with purchase of network hardware,
telephones, computers, or other peripheral equipment needed to
deliver telecommunications access to the school or school
district;
new text end

new text begin (4) costs associated with laying fiber for
telecommunications access;
new text end

new text begin (5) costs associated with wiring school or school district
buildings;
new text end

new text begin (6) costs associated with purchase, installation, or
purchase and installation of Internet filtering; and
new text end

new text begin (7) costs associated with digital content, including
on-line learning or distance learning programming, and
information databases.
new text end

new text begin Subd. 2. new text end

new text begin E-rates. new text end

new text begin To be eligible for aid under this
section, a district or charter school is required to file an
e-rate application either separately or through its
telecommunications access cluster and have a current technology
plan on file with the department. Discounts received on
telecommunications expenditures shall be reflected in the costs
submitted to the department for aid under this section.
new text end

new text begin Subd. 3. new text end

new text begin Reimbursement criteria. new text end

new text begin The commissioner shall
develop criteria for approving costs submitted by school
districts and charter schools under subdivision 1.
new text end

new text begin Subd. 4. new text end

new text begin District aid. new text end

new text begin A district or charter school's
Internet access equity aid equals 90 percent of the district or
charter school's approved cost for the previous fiscal year
according to subdivision 1 exceeding $15 times the district's
adjusted marginal cost pupil units for the previous fiscal year.
new text end

new text begin Subd. 5. new text end

new text begin Telecommunications/internet access services for
nonpublic schools. new text end

new text begin (a) Districts shall provide each year upon
formal request by or on behalf of a nonpublic school, not
including home schools, located in that district or area,
ongoing or recurring telecommunications access services to the
nonpublic school either through existing district providers or
through separate providers.
new text end

new text begin (b) The amount of district aid for telecommunications
access services for each nonpublic school under this subdivision
equals the lesser of:
new text end

new text begin (1) 90 percent of the nonpublic school's approved cost for
the previous fiscal year according to subdivision 1 exceeding
$10 times the number of weighted pupils enrolled at the
nonpublic school as of October 1 of the previous school year; or
new text end

new text begin (2) the product of the district's aid per pupil unit
according to subdivision 4 times the number of weighted pupils
enrolled at the nonpublic school as of October 1 of the previous
school year.
new text end

new text begin (c) For purposes of this subdivision, nonpublic school
pupils shall be weighted by grade level using the weighting
factors defined in section 126C.05, subdivision 1.
new text end

new text begin (d) Each year, a district providing services under
paragraph (a) may claim up to five percent of the aid determined
in paragraph (b) for costs of administering this subdivision.
No district may expend an amount for these telecommunications
access services which exceeds the amount allocated under this
subdivision. The nonpublic school is responsible for the
Internet access costs not covered by this section.
new text end

new text begin (e) At the request of a nonpublic school, districts may
allocate the amount determined in paragraph (b) directly to the
nonpublic school to pay for or offset the nonpublic school's
costs for telecommunications access services, however, the
amount allocated directly to the nonpublic school may not exceed
the actual amount of the school's ongoing or recurring
telecommunications access costs.
new text end

new text begin Subd. 6. new text end

new text begin Severability. new text end

new text begin If any portion of this section is
found by a court to be unconstitutional, the remaining portions
of the section shall remain in effect.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for revenue for
fiscal year 2006.
new text end

Sec. 11.

Minnesota Statutes 2004, section 126C.63,
subdivision 5, is amended to read:

Subd. 5.

Levy.

"Levy" means a district's net debt
service levy after the reduction of debt service equalization
aid under section 123B.53, subdivision 6. For taxes payable in
2003 and later, each district's maximum effort debt service levy
for purposes of subdivision 8, must be reduced by an equal
number of percentage points if the commissioner of finance
determines that the levy reduction will not result in a payment
from the general fund in the state treasury according to section
16A.641, as would be required under section 126C.72, subdivision
3. A district's levy that is adjusted under this section must
not be reduced below deleted text begin 30.1 deleted text end new text begin 25 new text end percent of the district's adjusted
net tax capacity.

Sec. 12.

Minnesota Statutes 2004, section 126C.63,
subdivision 8, is amended to read:

Subd. 8.

Maximum effort debt service levy.

(a) "Maximum
effort debt service levy" means the lesser of:

(1) a levy in whichever of the following amounts is
applicable:

(i) in any district receiving a debt service loan for a
debt service levy payable in 2002 and thereafter, or granted a
capital loan after January 1, 2002, a levy in total dollar
amount computed at a rate of deleted text begin 40 deleted text end new text begin 32 new text end percent of adjusted net tax
capacity for taxes payable in 2002 and thereafter;

(ii) in any district receiving a debt service loan for a
debt service levy payable in 2001 or earlier, or granted a
capital loan before January 2, deleted text begin 2001 deleted text end new text begin 2002 new text end , a levy in a total
dollar amount computed at a rate of deleted text begin 32 deleted text end new text begin 28 new text end percent of adjusted
net tax capacity for taxes payable in 2002 and thereafter; or

(2) a levy in any district for which a capital loan was
approved prior to August 1, 1981, a levy in a total dollar
amount equal to the sum of the amount of the required debt
service levy and an amount which when levied annually will in
the opinion of the commissioner be sufficient to retire the
remaining interest and principal on any outstanding loans from
the state within 30 years of the original date when the capital
loan was granted.

(b) The board in any district affected by the provisions of
paragraph (a), clause (2), may elect instead to determine the
amount of its levy according to the provisions of paragraph (a),
clause (1). If a district's capital loan is not paid within 30
years because it elects to determine the amount of its levy
according to the provisions of paragraph (a), clause (2), the
liability of the district for the amount of the difference
between the amount it levied under paragraph (a), clause (2),
and the amount it would have levied under paragraph (a), clause
(1), and for interest on the amount of that difference, must not
be satisfied and discharged pursuant to Minnesota Statutes 1988,
or an earlier edition of Minnesota Statutes if applicable,
section 124.43, subdivision 4.

Sec. 13.

Laws 1996, chapter 412, article 5, section 24, is
amended to read:

Sec. 24. new text begin BONDS PAID FROM TACONITE PRODUCTION TAX
REVENUES.
new text end

Subdivision 1.

Refunding bonds.

The appropriation of
funds from the distribution of taconite production tax revenues
to the taconite environmental protection tax fund and the
northeast Minnesota economic protection fund made by Laws 1988,
chapter 718, article 7, sections 62 and 63, Laws 1989, chapter
329, article 5, section 20, Laws 1990, chapter 604, article 8,
section 13, Laws 1992, chapter 499, article 5, section 29, deleted text begin and
by sections 18 to 20 deleted text end new text begin Laws 1996, chapter 412, article 5, sections
20 to 22, and Laws 2000, chapter 489, article 5, sections 24 to
26 new text end , shall continue to apply to bonds issued under Minnesota
Statutes, chapter 475, to refund bonds originally issued
pursuant to those chapters.

Subd. 2.

Local payments.

School districts that are
required in Laws 1988, chapter 718, article 7, sections 62 and
63, Laws 1989, chapter 329, article 5, section 20, Laws 1990,
chapter 604, article 8, section 13, Laws 1992, chapter 499,
article 5, section 29, deleted text begin and by sections 18 to 20 deleted text end new text begin Laws 1996,
chapter 412, article 5, sections 20 to 22, and Laws 2000,
chapter 489, article 5, sections 24 to 26 new text end , to impose levies to
pay debt service on the bonds issued under those provisions to
the extent the principal and interest on the bonds is not paid
by distributions from the taconite environmental protection fund
and the northeast Minnesota economic protection trust, may pay
their portion of the principal and interest from any funds
available to them. To the extent a school district uses funds
other than the proceeds of a property tax levy to pay its share
of the principal and interest on the bonds, the requirement to
impose a property tax to pay the local share does not apply to
the school district.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day
following final enactment.
new text end

Sec. 14. new text begin LEVY; GLENCOE-SILVER LAKE.
new text end

new text begin For taxes payable in 2006 only, Independent School District
No. 2859, Glencoe-Silver Lake, may levy an amount up to $81,276.
Of that amount, $63,850 is for recovering the cost of replacing
a gymnasium floor at Lakeside Elementary School resulting from
storm damage and $17,426 is for recovering the cost of the
Lincoln Junior High School water service line and associated
work.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxes
payable in 2006.
new text end

Sec. 15. new text begin LEVY; RED WING.
new text end

new text begin For taxes payable in 2006 only, Independent School District
No. 256, Red Wing, may levy an amount up to $158,000 for the
construction deficit for building the community ice arena.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for revenue for
fiscal year 2006.
new text end

Sec. 16. new text begin RESIDENTIAL PROGRAM FACILITIES; WORTHINGTON.
new text end

new text begin Subject to Minnesota Statutes, section 16A.695, Independent
School District No. 518, Worthington, may use the facilities
provided under Laws 1994, chapter 643, section 14, subdivision
8, as amended by Laws 1995, chapter 76, section 1, to provide
adult foster care or child foster care services licensed by the
commissioner of human services or for other special education
purposes.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day
following final enactment.
new text end

Sec. 17. new text begin APPROPRIATIONS.
new text end

new text begin Subdivision 1. new text end

new text begin Department of education. new text end

new text begin The sums
indicated in this section are appropriated from the general fund
to the Department of Education for the fiscal years designated.
new text end

new text begin Subd. 2. new text end

new text begin Health and safety revenue. new text end

new text begin For health and
safety aid according to Minnesota Statutes, section 123B.57,
subdivision 5:
new text end

new text begin $ 802,000 new text end new text begin ..... new text end new text begin 2006
new text end

new text begin $ 578,000 new text end new text begin ..... new text end new text begin 2007
new text end

new text begin The 2006 appropriation includes $211,000 for 2005 and
$591,000 for 2006.
new text end

new text begin The 2007 appropriation includes $109,000 for 2006 and
$469,000 for 2007.
new text end

new text begin Subd. 3. new text end

new text begin Debt service equalization. new text end

new text begin For debt service aid
according to Minnesota Statutes, section 123B.53, subdivision 6:
new text end

new text begin $25,654,000 new text end new text begin ..... new text end new text begin 2006
new text end

new text begin $24,134,000 new text end new text begin ..... new text end new text begin 2007
new text end

new text begin The 2006 appropriation includes $4,654,000 for 2005 and
$21,000,000 for 2006.
new text end

new text begin The 2007 appropriation includes $3,911,000 for 2006 and
$20,223,000 for 2007.
new text end

new text begin Subd. 4. new text end

new text begin Alternative facilities bonding aid. new text end

new text begin For
alternative facilities bonding aid, according to Minnesota
Statutes, section 123B.59, subdivision 1:
new text end

new text begin $19,287,000 new text end new text begin ..... new text end new text begin 2006
new text end

new text begin $19,287,000 new text end new text begin ..... new text end new text begin 2007
new text end

new text begin The 2006 appropriation includes $3,028,000 for 2005 and
$16,259,000 for 2006.
new text end

new text begin The 2007 appropriation includes $3,028,000 for 2006 and
$16,259,000 for 2007.
new text end

new text begin Subd. 5. new text end

new text begin Telecommunications internet access aid. new text end

new text begin For
telecommunications Internet access aid:
new text end

new text begin $4,500,000 new text end new text begin ..... new text end new text begin 2006
new text end

new text begin $4,600,000 new text end new text begin ..... new text end new text begin 2007
new text end

new text begin Subd. 6. new text end

new text begin Deferred maintenance aid. new text end

new text begin For deferred
maintenance aid under Minnesota Statutes, section 123B.591:
new text end

new text begin $2,684,000 new text end new text begin ..... new text end new text begin 2007
new text end

new text begin The 2007 appropriation includes $0 for 2006 and $2,684,000
for 2007.
new text end

ARTICLE 5

NUTRITION AND ACCOUNTING

Section 1.

new text begin [123B.748] REGULAR CLASSROOM EXPENDITURES.
new text end

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

new text begin "Direct classroom
expenditures" means instructional expenditures as defined in the
uniform financial accounting and reporting standards, excluding
tuition payments to other Minnesota school districts, capital
expenditures, and expenditures for athletics, other cocurricular
activities and extracurricular activities. "Total K-12
operating expenditures" means the total expenditures in the
general and food service funds, as defined in the uniform
financial accounting and reporting standards, excluding tuition
payments to other Minnesota school districts and capital
expenditures.
new text end

new text begin Subd. 2. new text end

new text begin Expected expenditure level. new text end

new text begin A school district
must spend at least 65 percent of its total K-12 operating
expenditures on direct classroom expenditures. If a school
district's direct classroom expenditures in fiscal year 2005 are
less than 65 percent of its total K-12 operating expenditures,
the district must increase its direct classroom expenditures by
at least two percentage points per year beginning in fiscal year
2006.
new text end

new text begin Subd. 3. new text end

new text begin Superintendent verification. new text end

new text begin A superintendent
must include in the audited financial statements submitted to
the commissioner under section 123B.77 a letter signed by the
superintendent certifying the percent of the district's total
K-12 operating expenditures that were actually spent on direct
classroom expenditures for that school year.
new text end

new text begin Subd. 4. new text end

new text begin Waiver. new text end

new text begin A school district that is unable to
meet the expenditure standards established under subdivision 2
may apply to the commissioner for a waiver. The waiver request
must list the reasons why the district's direct classroom
expenditures cannot meet the requirements of subdivision 2 and
describe the changes the district intends to meet in the
subsequent year in order to meet the direct classroom
instruction requirements. The commissioner must grant or deny a
waiver request within 60 days of receiving the request.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2005,
for the 2005-2006 school year.
new text end

Sec. 2.

Minnesota Statutes 2004, section 123B.749, is
amended to read:

123B.749 STRUCTURALLY BALANCED SCHOOL DISTRICT BUDGETS.

(a) Prior to approving a collective bargaining agreement
that does not result from an interest arbitration decision, a
school board must determine by board resolution that the
proposed agreement will not cause structural imbalance in the
district's budget during the period of the agreement.

(b) A school board may only determine that an agreement
will not cause structural imbalance if expenditures will not
exceed available funds, taking into account:

(1) current state aid formulas; and

(2) reasonable and comprehensive projections of ongoing
revenues and expenditures for the period of the agreement. deleted text begin It
is expected that deleted text end Onetime revenue may not be used for ongoing
expenditures. new text begin Any amount in excess of the board's guideline for
the district's general fund balance is not onetime revenue for
the purposes of this section. new text end The school board must make
available with the resolution a summary of the projections and
calculations supporting the determination. The projections and
calculations must include state aid formulas, pupil units, and
employee costs, including the terms of labor agreements,
including the agreement under consideration, fringe benefits,
severance pay, and staff changes.

(c) In addition to the determination required in paragraph
(a), the school board must project revenues, expenditures, and
fund balances for deleted text begin one year deleted text end new text begin two years new text end following the period of the
agreement. The projections must include the categories of
information described in paragraph (b), be reasonable and
comprehensive, and reference current state aid formulas.

(d) All projections and calculations required by this
section new text begin and estimated district employee terminations new text end must be
made available to the public prior to deleted text begin and deleted text end new text begin , new text end at new text begin , and after new text end the
meeting where the resolution is adopted in a manner consistent
with state law on public notice and access to public data.

(e) In an interest arbitration, the district must submit,
and the exclusive bargaining representative may submit, proposed
determinations with supporting projections and calculations
consistent with paragraph (b) of the effect of the potential
decision on the structural balance of the district's budget.
The arbitrator must consider the potential effect of a decision
on the structural balance of the district's budget for the term
of the agreement. The arbitrator's decision must describe the
effect of the decision on the structural balance of the
district's budget in a manner consistent with paragraph (b).
The arbitrator's decision must also show the effect of the
decision on the school budget for one year following the term of
the contract at issue. Within 30 days of receipt of the
decision or when the board acts on the decision, whichever is
earlier, the school board must by resolution determine the
effect of the decision on the structural balance of its budget
for the term of the agreement consistent with paragraph (b).

(f) A copy of the resolution with the supporting
projections and calculations must be submitted to the
commissioner of education with the uniform collective bargaining
agreement settlement document within 30 days of adoption of the
resolution. The commissioner must develop a model form for use
by districts in reporting projections and calculations. new text begin The
commissioner must not accept any reports that fail to comply
with this section. new text end The commissioner must make all resolutions,
projections, and calculations available to the public.

(g) Compliance with this section by itself is not an unfair
labor practice under section 179A.13, subdivision 2.

Sec. 3.

Minnesota Statutes 2004, section 123B.75,
subdivision 5, is amended to read:

Subd. 5.

Levy recognition.

(a) "School district tax
settlement revenue" means the current, delinquent, and
manufactured home property tax receipts collected by the county
and distributed to the school district.

(b) deleted text begin In June of 2003, the school district must recognize as
revenue, in the fund for which the levy was made, the lesser of:
deleted text end

deleted text begin (1) the sum of May, June, and July school district tax
settlement revenue received in that calendar year, plus general
education aid according to section 126C.13, subdivision 4,
received in July and August of that calendar year; or
deleted text end

deleted text begin (2) the sum of:
deleted text end

deleted text begin (i) 31 percent of the referendum levy certified according
to section 126C.17, in calendar year 2000; plus
deleted text end

deleted text begin (ii) the entire amount of the levy certified in the prior
calendar year according to section 124D.86, subdivision 4, for
school districts receiving revenue under sections 124D.86,
subdivision 3, clauses (1), (2), and (3); 126C.41, subdivisions
1, 2, and 3, paragraphs (b), (c), and (d); 126C.43, subdivision
2; 126C.457; and 126C.48, subdivision 6.
deleted text end

deleted text begin (c) deleted text end For fiscal year 2004 and later years, in June of each
year, the school district must recognize as revenue, in the fund
for which the levy was made, the lesser of:

(1) the sum of May, June, and July school district tax
settlement revenue received in that calendar year, plus general
education aid according to section 126C.13, subdivision 4,
received in July and August of that calendar year; or

(2) the sum of:

(i) the greater of deleted text begin 45 deleted text end new text begin 48.6 new text end percent of the referendum levy
certified according to section 126C.17, in the prior calendar
year or 31 percent of the referendum levy certified according to
section 126C.17, in calendar year 2000; plus

(ii) the entire amount of the levy certified in the prior
calendar year according to section 124D.86, subdivision 4, for
school districts receiving revenue under sections 124D.86,
subdivision 3, clauses (1), (2), and (3); 126C.41, subdivisions
1, 2, and 3, paragraphs (b), (c), and (d); 126C.43, subdivision
2; 126C.457; and 126C.48, subdivision 6; plus

(iii) deleted text begin 45 deleted text end new text begin 48.6 new text end percent of the amount of the levy certified
in the prior calendar year for the school district's general and
community service funds, plus or minus auditor's adjustments,
not including levy portions that are assumed by the state, that
remains after subtracting the referendum levy certified
according to section 126C.17 and the amount recognized according
to clause (ii).

Sec. 4.

Minnesota Statutes 2004, section 124D.111,
subdivision 1, is amended to read:

Subdivision 1.

School lunch aid computation.

Each school
year, the state must pay deleted text begin districts participating deleted text end new text begin participants new text end in
the national school lunch program the amount of eight cents for
each full paid, reduced, and free student lunch served to
students deleted text begin in the district deleted text end .

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for fiscal year
2006.
new text end

Sec. 5.

Minnesota Statutes 2004, section 124D.111,
subdivision 2, is amended to read:

Subd. 2.

Application.

new text begin A new text end school deleted text begin districts deleted text end new text begin district,
charter school, nonpublic school, or other participant in the
national school lunch program new text end shall apply to the department for
this payment on forms provided by the department.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for fiscal year
2006.
new text end

Sec. 6.

Minnesota Statutes 2004, section 124D.118,
subdivision 4, is amended to read:

Subd. 4.

Reimbursement.

In accordance with program
guidelines, the commissioner shall reimburse each participating
public or nonpublic school deleted text begin nine deleted text end new text begin 14 new text end cents for each half-pint of
milk that is served to kindergarten students and is not part of
a school lunch or breakfast reimbursed under section 124D.111 or
124D.1158.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for fiscal year
2006.
new text end

Sec. 7.

Minnesota Statutes 2004, section 127A.42,
subdivision 2, is amended to read:

Subd. 2.

Violations of law.

The commissioner may reduce
or withhold the district's state aid for any school year
whenever the board of the district authorizes or permits
violations of law within the district by:

(1) employing a teacher who does not hold a valid teaching
license or permit in a public school;

(2) noncompliance with a mandatory rule of general
application promulgated by the commissioner in accordance with
statute, unless special circumstances make enforcement
inequitable, impose an extraordinary hardship on the district,
or the rule is contrary to the district's best interests;

(3) the district's continued performance of a contract made
for the rental of rooms or buildings for school purposes or for
the rental of any facility owned or operated by or under the
direction of any private organization, if the contract has been
disapproved, the time for review of the determination of
disapproval has expired, and no proceeding for review is
pending;

(4) any practice which is a violation of sections 1 and 2
of article 13 of the Constitution of the state of Minnesota;

(5) failure to reasonably provide for a resident pupil's
school attendance under Minnesota Statutes;

(6) noncompliance with state laws prohibiting
discrimination because of race, color, creed, religion, national
origin, sex, age, marital status, status with regard to public
assistance or disability, as defined in sections 363A.08 to
363A.19 and 363A.28, subdivision 10; deleted text begin or
deleted text end

(7) using funds contrary to the statutory purpose of the
funds new text begin ; or
new text end

new text begin (8) failing to submit a report under section 123B.749,
paragraph (f) new text end .

The reduction or withholding must be made in the amount and upon
the procedure provided in this section.

Sec. 8.

Minnesota Statutes 2004, section 127A.45,
subdivision 2, is amended to read:

Subd. 2.

Definitions.

(a) The term "other district
receipts" means payments by county treasurers pursuant to
section 276.10, apportionments from the school endowment fund
pursuant to section 127A.33, apportionments by the county
auditor pursuant to section 127A.34, subdivision 2, and payments
to school districts by the commissioner of revenue pursuant to
chapter 298.

(b) The term "cumulative amount guaranteed" means the
product of

(1) the cumulative disbursement percentage shown in
subdivision 3; times

(2) the sum of

(i) deleted text begin 80 percent deleted text end new text begin the current year aid payment percentage new text end of
the estimated aid and credit entitlements paid according to
subdivision 13; plus

(ii) 100 percent of the entitlements paid according to
subdivisions 11 and 12; plus

(iii) the other district receipts.

(c) The term "payment date" means the date on which state
payments to districts are made by the electronic funds transfer
method. If a payment date falls on a Saturday, a Sunday, or a
weekday which is a legal holiday, the payment shall be made on
the immediately preceding business day. The commissioner may
make payments on dates other than those listed in subdivision 3,
but only for portions of payments from any preceding payment
dates which could not be processed by the electronic funds
transfer method due to documented extenuating circumstances.

new text begin (d) "Current year payment percentage" means 84.3 percent.
For fiscal year 2006 only, the commissioner of education must
reduce the current year payment percentage by the amount
necessary to save $4,000,000.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for state aid
payments for fiscal year 2006.
new text end

Sec. 9.

Minnesota Statutes 2004, section 127A.45,
subdivision 10, is amended to read:

Subd. 10.

Payments to school nonoperating funds.

Each
fiscal year state general fund payments for a district
nonoperating fund must be made at deleted text begin 80 percent deleted text end new text begin the current year
aid payment percentage new text end of the estimated entitlement during the
fiscal year of the entitlement. This amount shall be paid in 12
equal monthly installments. The amount of the actual
entitlement, after adjustment for actual data, minus the
payments made during the fiscal year of the entitlement must be
paid prior to October 31 of the following school year. The
commissioner may make advance payments of debt service
equalization aid for a district's debt service fund earlier than
would occur under the preceding schedule if the district submits
evidence showing a serious cash flow problem in the fund. The
commissioner may make earlier payments during the year and, if
necessary, increase the percent of the entitlement paid to
reduce the cash flow problem.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for state aid
payments for fiscal year 2006.
new text end

Sec. 10.

Minnesota Statutes 2004, section 127A.45,
subdivision 14, is amended to read:

Subd. 14.

Nonpublic aids.

The state shall pay aid
according to sections 123B.40 to 123B.48 for pupils attending
nonpublic schools as follows:

(1) an advance payment by November 30 equal to deleted text begin 80 percent
deleted text end new text begin the current year aid payment percentage new text end of the estimated
entitlement for the current fiscal year; and

(2) a final payment by October 31 of the following fiscal
year, adjusted for actual data.

If a payment advance to meet cash flow needs is requested
by a district and approved by the commissioner, the state shall
pay nonpublic pupil transportation aid according to section
123B.92 by October 31.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for state aid
payments for fiscal year 2006.
new text end

Sec. 11.

Minnesota Statutes 2004, section 127A.45,
subdivision 16, is amended to read:

Subd. 16.

Payments to third parties.

Notwithstanding
subdivision 3, deleted text begin 80 percent deleted text end new text begin the current year aid payment
percentage new text end of the amounts under section 123A.26, subdivision 3,
shall be paid in equal installments on August 30, December 30,
and March 30, with a deleted text begin 20 percent deleted text end final adjustment payment on
October 30 of the next fiscal year new text begin of the remaining amount new text end .

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for state aid
payments for fiscal year 2006.
new text end

Sec. 12. new text begin FUND TRANSFERS.
new text end

new text begin Subdivision 1. new text end

new text begin Lake crystal-wellcome memorial. new text end

new text begin (a)
Notwithstanding Minnesota Statutes, section 123B.79 or 123B.80,
on June 30, 2005, upon approval of the commissioner of
education, Independent School District No. 2071, Lake
Crystal-Wellcome Memorial, may permanently transfer up to
$132,754 from its reserved account for handicapped access to its
undesignated general fund balance.
new text end

new text begin (b) Prior to making the fund transfer, Independent School
District No. 2071, Lake Crystal-Wellcome Memorial, must
demonstrate to the commissioner's satisfaction that the
district's school buildings are accessible to students or
employees with disabilities.
new text end

new text begin (c) Notwithstanding Minnesota Statutes, section 123B.79 or
123B.80, on June 30 of 2005, 2006, and 2007, Independent School
District No. 2071, Lake Crystal-Wellcome Memorial, may
permanently transfer any balance in its reserved for operating
capital account resulting from the sale of school property to
its undesignated general fund balance.
new text end

new text begin Subd. 2. new text end

new text begin Rockford. new text end

new text begin Notwithstanding Minnesota Statutes,
sections 123B.79, 123B.80, and 475.61, subdivision 4,
Independent School District No. 883, Rockford, on June 30, 2005,
may permanently transfer up to $660,000 from its debt redemption
fund to the undesignated balance of its general fund without
making a levy reduction.
new text end

new text begin Subd. 3. new text end

new text begin Russell. new text end

new text begin Notwithstanding Minnesota Statutes,
section 123B.79 or 123B.80, on June 30, 2005, Independent School
District No. 418, Russell, may transfer up to $50,000 from its
reserved capital accounts in its general fund to its
undesignated fund balance.
new text end

new text begin Subd. 4. new text end

new text begin Ruthton. new text end

new text begin Notwithstanding Minnesota Statutes,
section 123B.79 or 123B.80, on June 30, 2005, Independent School
District No. 584, Ruthton, may permanently transfer up to
$140,000 from its reserved for operating capital account to the
undesignated general fund balance.
new text end

new text begin Subd. 5. new text end

new text begin Windom. new text end

new text begin Notwithstanding Minnesota Statutes,
section 123B.79 or 123B.80, Independent School District No. 177,
Windom, on June 30, 2005, may permanently transfer up to
$270,000 from its reserved for operating capital account to the
undesignated balance in its general fund.
new text end

new text begin Subd. 6. new text end

new text begin Fund transfer; chokio-alberta. new text end

new text begin Notwithstanding
Minnesota Statutes, section 123B.79 or 123B.80, on June 30,
2005, Independent School District No. 771, Chokio-Alberta, may
permanently transfer up to $150,000 from its reserved operating
capital account to the undesignated general fund balance.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day
following final enactment.
new text end

Sec. 13. new text begin DISABLED ACCESS LEVY AUTHORITY; EAST GRAND
FORKS.
new text end

new text begin Notwithstanding the time limits established in Minnesota
Statutes, section 123B.58, subdivision 3, Independent School
District No. 595, East Grand Forks, may levy its remaining
disabled access levy authority over five or fewer years.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day
following final enactment.
new text end

Sec. 14. new text begin TAX BASE ADJUSTMENTS, FERTILE-BELTRAMI.
new text end

new text begin (a) The commissioner of education, when making offsetting
levy adjustments between levy categories to ensure that each
levy category is positive for Independent School District No.
599, Fertile-Beltrami, shall make such adjustments first between
levy categories that are imposed on identical tax bases before
making such adjustments between levy categories that are imposed
on different tax bases. The commissioner may make offsetting
levy adjustments between the general fund and the debt service
fund, if necessary.
new text end

new text begin (b) The commissioner of education must make the offsetting
levy adjustments according to the process in paragraph (a) until
Independent School District No. 599, Fertile-Beltrami's current
referendum authority, under Minnesota Statutes, section 126C.17,
expires.
new text end

Sec. 15. new text begin FUNDING REDUCTION.
new text end

new text begin If House File 1664 or a similarly styled bill does not pass
the house of representatives, the commissioner of education must
adjust the current year aid payment percentage under Minnesota
Statutes, section 127A.45, subdivision 3, to reduce spending by
$134,000,000 during the 2006-2007 biennium.
new text end

Sec. 16. new text begin APPROPRIATIONS.
new text end

new text begin Subdivision 1. new text end

new text begin Department of education. new text end

new text begin The sums
indicated in this section are appropriated from the general fund
to the Department of Education for the fiscal years designated.
new text end

new text begin Subd. 2. new text end

new text begin School lunch. new text end

new text begin For school lunch aid according to
Minnesota Statutes, section 124D.111, and Code of Federal
Regulations, title 7, section 210.17:
new text end

new text begin $7,748,000 new text end new text begin ..... new text end new text begin 2006
new text end

new text begin $7,826,000 new text end new text begin ..... new text end new text begin 2007
new text end

new text begin Subd. 3. new text end

new text begin Traditional school breakfast; kindergarten
milk. new text end

new text begin For traditional school breakfast aid and kindergarten
milk under Minnesota Statutes, sections 124D.1158 and 124D.118:
new text end

new text begin $4,934,000 new text end new text begin ..... new text end new text begin 2006
new text end

new text begin $5,023,000 new text end new text begin ..... new text end new text begin 2007
new text end

new text begin Subd. 4. new text end

new text begin Summer school service replacement aid. new text end

new text begin For
summer food service replacement aid under Minnesota Statutes,
section 124D.119:
new text end

new text begin $ 150,000 new text end new text begin ..... new text end new text begin 2006
new text end

new text begin $ 150,000 new text end new text begin ..... new text end new text begin 2007
new text end

ARTICLE 6

LIBRARIES

Section 1. new text begin DEPARTMENT OF EDUCATION; LIBRARY
APPROPRIATIONS.
new text end

new text begin Subdivision 1. new text end

new text begin Department of education. new text end

new text begin The sums
indicated in this section are appropriated from the general fund
to the Department of Education for the fiscal years designated.
new text end

new text begin Subd. 2. new text end

new text begin Basic system support. new text end

new text begin For basic system support
grants under Minnesota Statutes, section 134.355:
new text end

new text begin $ 8,570,000 new text end new text begin ..... new text end new text begin 2006
new text end

new text begin $ 8,570,000 new text end new text begin ..... new text end new text begin 2007
new text end

new text begin The 2006 appropriation includes $1,345,000 for 2005 and
$7,225,000 for 2006.
new text end

new text begin The 2007 appropriation includes $1,345,000 for 2006 and
$7,225,000 for 2007.
new text end

new text begin Subd. 3. new text end

new text begin Multicounty, multitype library systems. new text end

new text begin For
grants under Minnesota Statutes, sections 134.353 and 134.354,
to multicounty, multitype library systems:
new text end

new text begin $ 903,000 new text end new text begin ..... new text end new text begin 2006
new text end

new text begin $ 903,000 new text end new text begin ..... new text end new text begin 2007
new text end

new text begin The 2006 appropriation includes $141,000 for 2005 and
$762,000 for 2006.
new text end

new text begin The 2007 appropriation includes $141,000 for 2006 and
$762,000 for 2007.
new text end

new text begin Subd. 4. new text end

new text begin Electronic library for minnesota. new text end

new text begin For statewide
licenses to online databases selected in cooperation with the
Higher Education Services Office for school media centers,
public libraries, state government agency libraries, and public
or private college or university libraries:
new text end

new text begin $1,039,000 new text end new text begin ..... new text end new text begin 2006
new text end

new text begin $1,091,000 new text end new text begin ..... new text end new text begin 2007
new text end

new text begin Any balance in the first year does not cancel but is
available in the second year.
new text end

new text begin Subd. 5. new text end

new text begin Regional library telecommunications aid. new text end

new text begin For
regional library telecommunications aid under Minnesota
Statutes, section 134.355:
new text end

new text begin $1,200,000 new text end new text begin ..... new text end new text begin 2006
new text end

new text begin $1,200,000 new text end new text begin ..... new text end new text begin 2007
new text end

new text begin The 2006 appropriation includes $188,000 for 2005 and
$1,012,000 for 2006.
new text end

new text begin The 2007 appropriation includes $188,000 for 2006 and
$1,012,000 for 2007.
new text end

new text begin Subd. 6. new text end

new text begin Mnlink. new text end

new text begin To support school media center and
public library participation in MnLink:
new text end

new text begin $ 250,000 new text end new text begin ..... new text end new text begin 2006
new text end

new text begin $ 250,000 new text end new text begin ..... new text end new text begin 2007
new text end

ARTICLE 7

EARLY EDUCATION

Section 1.

Minnesota Statutes 2004, section 121A.17,
subdivision 1, is amended to read:

Subdivision 1.

Early childhood developmental screening.

Every school board must provide for a mandatory program of early
childhood developmental screening for children once before
school entrance, targeting children who are between deleted text begin 3-1/2 deleted text end new text begin three
new text end and four years old. This screening program must be established
either by one board, by two or more boards acting in
cooperation, by service cooperatives, by early childhood family
education programs, or by other existing programs. This
screening examination is a mandatory requirement for a student
to continue attending kindergarten or first grade in a public
school. A child need not submit to developmental screening
provided by a board if the child's health records indicate to
the board that the child has received comparable developmental
screening from a public or private health care organization or
individual health care provider. new text begin A public school must assign a
child a student identification number, as defined by the
commissioner, at the time the child receives a developmental
screening or the child's parent or guardian provides the public
school with the child's health records indicating that the child
received a comparable developmental screening. A school
district must transmit essential data under section 125B.07,
subdivision 6, to the department. new text end Districts are encouraged to
reduce the costs of preschool developmental screening programs
by deleted text begin utilizing deleted text end new text begin using new text end volunteers in implementing the program.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day
following final enactment.
new text end

Sec. 2.

Minnesota Statutes 2004, section 121A.17,
subdivision 3, is amended to read:

Subd. 3.

Screening program.

(a) A screening program must
include at least the following components: developmental
assessments new text begin that measure the child's cognitive development new text end ,
hearing and vision screening or referral, immunization review
and referral, the child's height and weight, identification of
risk factors that may influence learning, an interview with the
parent about the child, and referral for assessment, diagnosis,
and treatment when potential needs are identified. The district
and the person performing or supervising the screening must
provide a parent or guardian with clear written notice that the
parent or guardian may decline to answer questions or provide
information about family circumstances that might affect
development and identification of risk factors that may
influence learning. The notice must clearly state that
declining to answer questions or provide information does not
prevent the child from being enrolled in kindergarten or first
grade if all other screening components are met. If a parent or
guardian is not able to read and comprehend the written notice,
the district and the person performing or supervising the
screening must convey the information in another manner. The
notice must also inform the parent or guardian that a child need
not submit to the district screening program if the child's
health records indicate to the school that the child has
received comparable developmental screening performed within the
preceding 365 days by a public or private health care
organization or individual health care provider. The notice
must be given to a parent or guardian at the time the district
initially provides information to the parent or guardian about
screening and must be given again at the screening location.

(b) All screening components shall be consistent with the
standards of the state commissioner of health for early
developmental screening programs. A developmental screening
program must not provide laboratory tests or a physical
examination to any child. The district must request from the
public or private health care organization or the individual
health care provider the results of any laboratory test or
physical examination within the 12 months preceding a child's
scheduled screening.

(c) If a child is without health coverage, the school
district must refer the child to an appropriate health care
provider.

(d) A board may offer additional components such as
nutritional, physical and dental assessments, review of family
circumstances that might affect development, blood pressure,
laboratory tests, and health history.

(e) If a statement signed by the child's parent or guardian
is submitted to the administrator or other person having general
control and supervision of the school that the child has not
been screened because of conscientiously held beliefs of the
parent or guardian, the screening is not required.

Sec. 3.

Minnesota Statutes 2004, section 121A.17,
subdivision 5, is amended to read:

Subd. 5.

Developmental screening program information.

The board must inform each resident family with a child eligible
to participate in the developmental screening program about the
availability of the program and the state's requirement that a
child receive new text begin a new text end developmental screening new text begin or provide health
records indicating that the child received a comparable
developmental screening from a public or private health care
organization or individual health care provider new text end not later than
30 days after the first day of attending kindergarten in a
public school. new text begin A school district must inform all resident
families with eligible children under age seven that their
children may receive a developmental screening conducted either
by the school district or by a public or private health care
organization or individual health care provider.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day
following final enactment.
new text end

Sec. 4.

Minnesota Statutes 2004, section 121A.19, is
amended to read:

121A.19 DEVELOPMENTAL SCREENING AID.

Each school year, the state must pay a district deleted text begin $40 deleted text end new text begin $50 new text end for
each new text begin three-year-old new text end child screened new text begin ; $40 for each four-year-old
child screened; and $30 for each five-year-old child screened
prior to kindergarten new text end according to the requirements of section
121A.17. If this amount of aid is insufficient, the district
may permanently transfer from the general fund an amount that,
when added to the aid, is sufficient.

Sec. 5.

Minnesota Statutes 2004, section 124D.135,
subdivision 1, is amended to read:

Subdivision 1.

Revenue.

The revenue for early childhood
family education programs for a school district equals deleted text begin $120 for
fiscal years 2003 and 2004 and deleted text end $96 for fiscal year 2005 new text begin , $115
for fiscal year 2006, and $125 for fiscal year 2007 new text end and later,
times the greater of:

(1) 150; or

(2) the number of people under five years of age residing
in the district on October 1 of the previous school year.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for revenue for
fiscal year 2006.
new text end

Sec. 6.

Minnesota Statutes 2004, section 124D.135,
subdivision 5, is amended to read:

Subd. 5.

Use of revenue restricted.

Early childhood
family education revenue may be used only for early childhood
family education programs. Not more than five percent of early
childhood family education revenue new text begin , as defined in subdivision 7,
new text end may be used to administer early childhood family education
programs.

Sec. 7.

Minnesota Statutes 2004, section 124D.15,
subdivision 1, is amended to read:

Subdivision 1.

Establishment; purpose.

A district or a
group of districts may establish a school readiness program
for deleted text begin eligible deleted text end children new text begin age three to entering kindergarten new text end . The
purpose of a school readiness program is to deleted text begin provide all eligible
children adequate opportunities to participate in child
development programs that enable the children to enter school
with the necessary skills and behavior and family stability and
support to progress and flourish deleted text end new text begin prepare children cognitively
and physically and teach the self-discipline necessary to enter
kindergarten new text end .

Sec. 8.

Minnesota Statutes 2004, section 124D.15,
subdivision 3, is amended to read:

Subd. 3.

Program deleted text begin eligibility deleted text end new text begin requirements new text end .

new text begin (a) new text end A school
readiness program new text begin provider new text end must deleted text begin include the following deleted text end :

(1) deleted text begin a comprehensive plan to anticipate and meet the needs
of participating families by coordinating existing social
services programs and by fostering collaboration among agencies
or other community-based organizations and programs that provide
a full range of flexible, family-focused services to families
with young children deleted text end new text begin assess each child's cognitive skills when
the child enters and again before the child leaves the program
to inform program planning and promote kindergarten readiness new text end ;

(2) deleted text begin a development and learning component to help children
develop appropriate social, cognitive, and physical skills, and
emotional well-being;
deleted text end

deleted text begin (3) health referral services to address children's medical,
dental, mental health, and nutritional needs deleted text end new text begin provide
comprehensive program content based on early childhood research
and professional practice that is focused on children's
cognitive skills and development and prepares children for the
transition to kindergarten new text end ;

deleted text begin (4) deleted text end new text begin (3) new text end deleted text begin a nutrition component to meet children's daily
nutritional needs deleted text end new text begin arrange for early childhood screening and
appropriate referral new text end ;

deleted text begin (5) deleted text end new text begin (4) new text end deleted text begin parents' involvement in meeting children's
educational, health, social service, and other needs deleted text end new text begin involve
parents in program planning and decision making new text end ;

deleted text begin (6) deleted text end new text begin (5) new text end deleted text begin community outreach to ensure participation by
families who represent the racial, cultural, and economic
diversity of the community; deleted text end new text begin coordinate with relevant
community-based services; and
new text end

deleted text begin (7) deleted text end new text begin (6) new text end deleted text begin community-based staff and program resources,
including interpreters, that reflect the racial and ethnic
characteristics of the children participating in the program;
and
deleted text end

deleted text begin (8) a literacy component to ensure that the literacy needs
of parents are addressed through referral to and cooperation
deleted text end new text begin cooperate new text end with adult basic education programs and other adult
literacy programs.

new text begin (b) A district that establishes a school readiness program
under this section must monitor the school performance of those
students who participate in the program and subsequently attend
a district school in grades kindergarten through grade 3,
compare the school performance of those students with other
students in the same grade in the district who did not
participate in a school readiness program, and report the
performance comparisons annually by May 1 to the school board
and the department.
new text end

Sec. 9.

Minnesota Statutes 2004, section 124D.15, is
amended by adding a subdivision to read:

new text begin Subd. 3a. new text end

new text begin Application and reporting requirements. new text end

new text begin (a) A
school readiness program provider must submit a biennial plan
for approval by the commissioner before receiving aid under
section 124D.16. The plan must describe how the program meets
the program requirements under subdivision 3. A school district
by April 1 must submit the plan for approval by the commissioner
in the form and manner prescribed by the commissioner. One-half
the districts must first submit the plan by April 1, 2006, and
one-half the districts must first submit the plan by April 1,
2007, as determined by the commissioner.
new text end

new text begin (b) Programs receiving school readiness funds annually must
submit a report to the department.
new text end

Sec. 10.

Minnesota Statutes 2004, section 124D.15,
subdivision 5, is amended to read:

Subd. 5.

Services with new or existing providers.

A
district deleted text begin is encouraged to deleted text end new text begin may new text end contract with a deleted text begin public deleted text end new text begin charter
school new text end or deleted text begin nonprofit deleted text end new text begin community-based new text end organization to provide
eligible children developmentally appropriate services that meet
the program requirements in subdivision 3. In the alternative,
a district may pay tuition or fees to place an eligible child in
an existing program. A district may establish a new program
where no existing, reasonably accessible program meets the
program requirements in subdivision 3. new text begin Districts must submit a
copy of each contract to the commissioner with the biennial plan.
new text end Services may be provided in a site-based program or in the home
of the child or a combination of both. The district may not
restrict participation to district residents.

Sec. 11.

Minnesota Statutes 2004, section 124D.15,
subdivision 10, is amended to read:

Subd. 10.

Supervision.

A program provided by a board
must be supervised by a licensed early childhood teacher, a
certified early childhood educator, or a licensed parent
educator. deleted text begin A program provided according to a contract between a
district and a nonprofit organization or another private
organization must be supervised and staffed according to the
terms of the contract.
deleted text end

Sec. 12.

Minnesota Statutes 2004, section 124D.15,
subdivision 12, is amended to read:

Subd. 12.

Program fees.

A district deleted text begin may deleted text end new text begin must new text end adopt a
sliding fee schedule based on a family's income but must waive a
fee for a participant unable to pay. deleted text begin The fees charged must be
designed to enable eligible children of all socioeconomic levels
to participate in the program.
deleted text end

Sec. 13.

Minnesota Statutes 2004, section 124D.15, is
amended by adding a subdivision to read:

new text begin Subd. 14. new text end

new text begin Assistance. new text end

new text begin The department must assist
districts, upon request, with programs under this section.
new text end

Sec. 14.

Minnesota Statutes 2004, section 124D.16,
subdivision 2, is amended to read:

Subd. 2.

Amount of aid.

(a) A district is eligible to
receive school readiness aid new text begin for eligible prekindergarten pupils
enrolled in a school readiness program under section 124D.15 new text end if
the deleted text begin program deleted text end new text begin biennial new text end plan required by deleted text begin subdivision 1 deleted text end new text begin section
124D.15, subdivision 3a, new text end has been approved by the commissioner.

(b) For fiscal year 2002 and thereafter, a district must
receive school readiness aid equal to:

(1) the number of deleted text begin eligible deleted text end four-year-old children in the
district on October 1 for the previous school year times the
ratio of 50 percent of the total school readiness aid for that
year to the total number of deleted text begin eligible deleted text end four-year-old children
reported to the commissioner for the previous school year; plus

(2) the number of pupils enrolled in the school district
from families eligible for the free or reduced school lunch
program for the deleted text begin second deleted text end previous school year times the ratio of
50 percent of the total school readiness aid for that year to
the total number of pupils in the state from families eligible
for the free or reduced school lunch program for the deleted text begin second
deleted text end previous school year.

Sec. 15.

Minnesota Statutes 2004, section 124D.16,
subdivision 3, is amended to read:

Subd. 3.

Use of aid.

School readiness aid shall be used
only to provide a school readiness program and may be used to
provide transportation. Not more than five percent of deleted text begin the
aid deleted text end new text begin program revenue, as defined in subdivision 5, new text end may be used
for the cost of administering the program. Aid must be used to
supplement and not supplant local, state, and federal funding.
Aid may not be used for instruction and services required under
sections 125A.03 to 125A.24 and 125A.65. Aid may not be used to
purchase land or construct buildings, but may be used to lease
or renovate existing buildings.

Sec. 16.

new text begin [124D.175] MINNESOTA EARLY LEARNING FOUNDATION
PROPOSAL.
new text end

new text begin (a) To the extent revenue is available for the purposes of
this section, the commissioner must implement paragraphs (b) and
(c).
new text end

new text begin (b) The commissioner must implement an early childhood
development grant program for low-income and other families that
increases the effectiveness of early childhood development
programs, which may include child care programs, and leads to
improved early childhood parent education and children's
kindergarten readiness. Children eligible to participate under
this section must demonstrate two or more of the following
characteristics:
new text end

new text begin (1) are members of a household with an income less than 75
percent of the statewide median family income;
new text end

new text begin (2) live in divorced or separated households headed by a
single parent;
new text end

new text begin (3) have experienced residential instability, homelessness,
or have parents who have been unemployed in the past 12 months;
new text end

new text begin (4) have a parent who has not received a high school
diploma or its equivalent;
new text end

new text begin (5) speak a primary language other than English;
new text end

new text begin (6) are determined by a qualified early childhood or other
professional to require additional developmental screening,
diagnosis, or treatment;
new text end

new text begin (7) have been placed in three or more child care settings
in the past 12 months or are determined by a qualified early
childhood or other professional to have been a victim of
bullying;
new text end

new text begin (8) have a parent who has undergone treatment for chemical
abuse or mental illness; or
new text end

new text begin (9) other criteria determined by the commissioner in
consultation with qualified early childhood or other
professionals.
new text end

new text begin (c) The program must include:
new text end

new text begin (1) grant awards to existing early childhood development
program providers that also provide parent education programs
and to qualified providers proposing to implement pilot programs
for this same purpose;
new text end

new text begin (2) grant awards to enable low-income families to
participate in these programs;
new text end

new text begin (3) grant awards to improve overall academic quality; and
new text end

new text begin (4) an evaluation of the academic and financial efficacy of
all these programs.
new text end

new text begin This grant program must not supplant existing early childhood
development programs or child care funds.
new text end

new text begin (d) The commissioner must contract with a private
nonprofit, section 501(c)(3) organization to implement the
requirements of paragraph (b). The private nonprofit
organization must be governed by a board of directors composed
of members from the public and nonpublic sectors, where the
nonpublic sector members compose a simple majority of board
members and where the public sector members are state and local
government officials and kindergarten through grade 12 or
postsecondary educators appointed by the governor. The board of
directors must appoint an executive director and must seek
advice from geographically and ethnically diverse parents of
young children and representatives of early childhood
development providers, kindergarten through grade 12 and
postsecondary educators, public libraries and the business
sector. All other terms and conditions under which board
members serve and operate must be described in the articles and
bylaws of the organization. The private nonprofit organization
is not a state agency and is not subject to any laws governing
public agencies.
new text end

new text begin (e) This section expires June 30, 2011.
new text end

Sec. 17.

Minnesota Statutes 2004, section 126C.15, is
amended by adding a subdivision to read:

new text begin Subd. 2a. new text end

new text begin Prekindergarten programs. new text end

new text begin Revenue allocated
under subdivision 2, paragraph (c), must be reserved and used
for programs and activities that prepare children ages 3-1/2
from families eligible for the free or reduced-price school
lunch program to enter kindergarten. Programs may serve
resident and nonresident children. Districts may contract with
private preschools and other providers of prekindergarten
programs.
new text end

Sec. 18.

Minnesota Statutes 2004, section 179A.03,
subdivision 14, is amended to read:

Subd. 14.

Public employee or employee.

"Public employee"
or "employee" means any person appointed or employed by a public
employer except:

(a) elected public officials;

(b) election officers;

(c) commissioned or enlisted personnel of the Minnesota
National Guard;

(d) emergency employees who are employed for emergency work
caused by natural disaster;

(e) part-time employees whose service does not exceed the
lesser of 14 hours per week or 35 percent of the normal work
week in the employee's appropriate unit;

(f) employees whose positions are basically temporary or
seasonal in character and: (1) are not for more than 67 working
days in any calendar year; or (2) are not for more than 100
working days in any calendar year and the employees are under
the age of 22, are full-time students enrolled in a nonprofit or
public educational institution prior to being hired by the
employer, and have indicated, either in an application for
employment or by being enrolled at an educational institution
for the next academic year or term, an intention to continue as
students during or after their temporary employment;

(g) employees providing services for not more than two
consecutive quarters to the Board of Trustees of the Minnesota
State Colleges and Universities under the terms of a
professional or technical services contract as defined in
section 16C.08, subdivision 1;

(h) employees of charitable hospitals as defined by section
179.35, subdivision 3;

(i) full-time undergraduate students employed by the school
which they attend under a work-study program or in connection
with the receipt of financial aid, irrespective of number of
hours of service per week;

(j) an individual who is employed for less than 300 hours
in a fiscal year as an instructor in an adult vocational
education program;

(k) an individual hired by the Board of Trustees of the
Minnesota State Colleges and Universities to teach one course
for three or fewer credits for one semester in a year;

(l) with respect to court employees:

(1) personal secretaries to judges;

(2) law clerks;

(3) managerial employees;

(4) confidential employees; and

(5) supervisory employees.

The following individuals are public employees regardless
of the exclusions of clauses (e) and (f):

(i) an employee hired by a school district or the Board of
Trustees of the Minnesota State Colleges and Universities except
at the university established in section 136F.13 or for
community services or community education instruction offered on
a noncredit basis: (A) to replace an absent teacher or faculty
member who is a public employee, where the replacement employee
is employed more than 30 working days as a replacement for that
teacher or faculty member; or (B) to take a teaching position
created due to increased enrollment, curriculum expansion,
courses which are a part of the curriculum whether offered
annually or not, or other appropriate reasons; deleted text begin and
deleted text end

(ii) an employee hired for a position under clause (f)(1)
if that same position has already been filled under clause
(f)(1) in the same calendar year and the cumulative number of
days worked in that same position by all employees exceeds 67
calendar days in that year. For the purpose of this paragraph,
"same position" includes a substantially equivalent position if
it is not the same position solely due to a change in the
classification or title of the position new text begin ; and
new text end

new text begin (iii) an early childhood family education teacher employed
by a school district new text end .

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2005.
new text end

Sec. 19. new text begin PILOT PROGRAM FOR AT-RISK PREKINDERGARTEN
CHILDREN.
new text end

new text begin Subdivision 1. new text end

new text begin Establishment; eligibility; application
process. new text end

new text begin (a) An early childhood education pilot program for
at-risk children between the age of three and entering
kindergarten is established to develop or expand developmentally
appropriate and cost-effective programs for children who
demonstrate two or more of the following characteristics:
new text end

new text begin (1) are members of a household with an income less than 75
percent of the statewide median family income;
new text end

new text begin (2) live in divorced or separated households headed by a
single parent;
new text end

new text begin (3) have experienced residential instability, homelessness,
or have parents who have been unemployed in the past 12 months;
new text end

new text begin (4) have a parent who has not received a high school
diploma or its equivalent;
new text end

new text begin (5) speak a primary language other than English;
new text end

new text begin (6) are determined by a qualified early childhood or other
professional to require additional developmental screening,
diagnosis, or treatment;
new text end

new text begin (7) have been placed in three or more child care settings
in the past 12 months or are determined by a qualified early
childhood or other professional to have been a victim of
bullying;
new text end

new text begin (8) have a parent who has undergone treatment for chemical
abuse or mental illness; or
new text end

new text begin (9) other criteria determined by the commissioner in
consultation with qualified early childhood or other
professionals.
new text end

new text begin (b) An applicant for a grant must be a qualified provider
of care, education, and social services for young children and
their families. The applicant must demonstrate to the
satisfaction of the commissioner of education that, at a
minimum, the applicant:
new text end

new text begin (1) has successfully operated an early childhood program
for two or more calendar years that includes a parent
involvement and education component;
new text end

new text begin (2) addresses the physical and educational needs of young
children and their families; and
new text end

new text begin (3) measures its success in meeting the needs of the young
children and families it serves.
new text end

new text begin (c) To obtain a grant under this section, a qualified
provider must submit an application to the commissioner of
education in the form and manner the commissioner prescribes.
The application must demonstrate the applicant's qualifications,
consistent with paragraph (b), and describe how the applicant
proposes to develop or expand a developmentally appropriate and
cost-effective program for at-risk young children and their
families. The commissioner may require an applicant to submit
additional information.
new text end

new text begin Subd. 2. new text end

new text begin Grant awards. new text end

new text begin The commissioner may award up to
five grants to qualified providers throughout the state. The
amount of the grant shall be based on the number of children and
families expected to participate in the provider's program.
Grant recipients must use the grant award to provide a
developmentally appropriate and cost-effective program for
at-risk young children and their families.
new text end

new text begin Subd. 3. new text end

new text begin Evaluation. new text end

new text begin The commissioner, after evaluating
the programmatic and cost-effectiveness of the grant recipients'
programs and identifying the elements of developmentally
appropriate and cost-effective programs for at-risk young
children and their families, must submit by January 15, 2008, a
written report of the commissioner's findings to the early
childhood committees in the legislature. The commissioner must
submit by January 15, 2014, a subsequent written report to the
early childhood education committees of the legislature
evaluating the long-term effect of children's participation in
early childhood education programs under this section.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2005.
new text end

Sec. 20. new text begin MELF PROGRESS REPORT.
new text end

new text begin Consistent with Minnesota Statutes, section 124D.175, the
private nonprofit organization under contract with the
commissioner of education must submit to the education policy
and finance committees of the legislature by February 1, 2008,
an interim progress report evaluating the programmatic and
financial efficacy of the programs receiving grant awards.
new text end

Sec. 21. new text begin APPROPRIATIONS.
new text end

new text begin Subdivision 1. new text end

new text begin Department of education. new text end

new text begin The sums
indicated in this section are appropriated from the general fund
to the Department of Education for the fiscal years designated.
new text end

new text begin Subd. 2. new text end

new text begin School readiness. new text end

new text begin For revenue for school
readiness programs under Minnesota Statutes, sections 124D.15
and 124D.16:
new text end

new text begin $9,020,000 new text end new text begin ..... new text end new text begin 2006
new text end

new text begin $9,042,000 new text end new text begin ..... new text end new text begin 2007
new text end

new text begin The 2006 appropriation includes $1,417,000 for 2005 and
$7,603,000 for 2006.
new text end

new text begin The 2007 appropriation includes $1,415,000 for 2006 and
$7,627,000 for 2007.
new text end

new text begin Subd. 3. new text end

new text begin Early childhood family education aid. new text end

new text begin For early
childhood family education aid under Minnesota Statutes, section
124D.135:
new text end

new text begin $17,652,000 new text end new text begin ..... new text end new text begin 2006
new text end

new text begin $22,133,000 new text end new text begin ..... new text end new text begin 2007
new text end

new text begin The 2006 appropriation includes $1,861,000 for 2005 and
$15,791,000 for 2006.
new text end

new text begin The 2007 appropriation includes $2,940,000 for 2006 and
$19,193,000 for 2007.
new text end

new text begin Subd. 4. new text end

new text begin Health and developmental screening aid. new text end

new text begin For
health and developmental screening aid under Minnesota Statutes,
sections 121A.17 and 121A.19:
new text end

new text begin $3,076,000 new text end new text begin ..... new text end new text begin 2006
new text end

new text begin $3,511,000 new text end new text begin ..... new text end new text begin 2007
new text end

new text begin The 2006 appropriation includes $417,000 for 2005 and
$2,659,000 for 2006.
new text end

new text begin The 2007 appropriation includes $494,000 for 2006 and
$3,017,000 for 2007.
new text end

new text begin Subd. 5. new text end

new text begin Head start program. new text end

new text begin For Head Start programs
under Minnesota Statutes, section 119A.52:
new text end

new text begin $17,100,000 new text end new text begin ..... new text end new text begin 2006
new text end

new text begin $17,100,000 new text end new text begin ..... new text end new text begin 2007
new text end

new text begin Subd. 6. new text end

new text begin Minnesota early learning foundation. new text end

new text begin For the
purposes of Minnesota Statutes, section 124D.175:
new text end

new text begin $ 1,500,000 new text end new text begin ..... new text end new text begin 2006
new text end

new text begin The private nonprofit, section 501(c)(3) organization
contracting with the commissioner may accept nonpublic funds for
the purposes of Minnesota Statutes, section 124D.175.
new text end

new text begin Of this appropriation, $500,000 is for a pilot program to
develop or expand developmentally appropriate and cost-effective
programs for at-risk young children and their families under
section 19.
new text end

new text begin This is a onetime appropriation.
new text end

Sec. 22. new text begin REPEALER.
new text end

new text begin (a) Minnesota Statutes 2004, sections 124D.15, subdivisions
2, 4, 6, 7, 8, 9, 11, and 13; and 124D.16, subdivision 4, are
repealed.
new text end

new text begin (b) Minnesota Statutes 2004, section 124D.16, subdivision
1, is repealed effective July 1, 2006.
new text end

ARTICLE 8

PREVENTION

Section 1.

Minnesota Statutes 2004, section 119A.46,
subdivision 1, is amended to read:

Subdivision 1.

Definitions.

(a) The definitions in
section 144.9501 and in this subdivision apply to this section.

(b) "Eligible organization" means a lead contractor, city,
board of health, community health department, community action
agency as defined in section 119A.374, or community development
corporation.

(c) "Commissioner" means the commissioner of deleted text begin education
deleted text end new text begin health new text end , or the commissioner of the Minnesota Housing Finance
Agency as authorized by section 462A.05, subdivision 15c.

Sec. 2.

Minnesota Statutes 2004, section 119A.46,
subdivision 2, is amended to read:

Subd. 2.

Grants; administration.

Within the limits of
the available appropriation, the commissioner must develop a
swab team services program which may make demonstration and
training grants to eligible organizations to train workers to
provide swab team services and swab team services for
residential property. Grants may be awarded to nonprofit
organizations to provide technical assistance and training to
ensure quality and consistency within the statewide program.
Grants must be awarded to help ensure full-time employment to
workers providing swab team services and must be awarded for a
two-year period.

Grants awarded under this section must be made in
consultation with the deleted text begin commissioners of the Department of Health
and deleted text end new text begin commissioner of new text end the Housing Finance Agency deleted text begin , deleted text end and
representatives of neighborhood groups from areas at high risk
for toxic lead exposure, a labor organization, the lead
coalition, community action agencies, and the legal aid
society. The consulting team must review grant applications and
recommend awards to eligible organizations that meet
requirements for receiving a grant under this section.

Sec. 3.

Minnesota Statutes 2004, section 119A.46,
subdivision 3, is amended to read:

Subd. 3.

Applicants.

(a) Interested eligible
organizations may apply to the commissioner for grants under
this section. Two or more eligible organizations may jointly
apply for a grant. Priority shall be given to community action
agencies in greater Minnesota and to either community action
agencies or neighborhood based nonprofit organizations in cities
of the first class. Of the total annual appropriation, 12.5
percent may be used for administrative purposes. The
commissioner may deviate from this percentage if a grantee can
justify the need for a larger administrative allowance. Of this
amount, up to five percent may be used by the commissioner for
state administrative purposes. Applications must provide
information requested by the commissioner, including at least
the information required to assess the factors listed in
paragraph (d).

(b) The commissioner must deleted text begin coordinate with the commissioner
of health who must deleted text end consult with boards of health to provide swab
team services for purposes of secondary prevention. The
priority for swab teams created by grants to eligible
organizations under this section must be work assigned by the
commissioner of health, or by a board of health if so designated
by the commissioner of health, to provide secondary prevention
swab team services to fulfill the requirements of section
144.9504, subdivision 6, in response to a lead order. Swab
teams assigned work under this section by the commissioner, that
are not engaged daily in fulfilling the requirements of section
144.9504, subdivision 6, must deliver swab team services in
response to elevated blood lead levels as defined in section
144.9501, subdivision 9, where lead orders were not issued, and
for purposes of primary prevention in census tracts known to be
in areas at high risk for toxic lead exposure as described in
section 144.9503, subdivision 2.

(c) Any additional money must be used for grants to
establish swab teams for primary prevention under section
144.9503, in census tracts in areas at high risk for toxic lead
exposure as determined under section 144.9503, subdivision 2.

(d) In evaluating grant applications, the commissioner must
consider the following criteria:

(1) the use of lead contractors and lead workers for
residential swab team services;

(2) the participation of neighborhood groups and
individuals, as swab team workers, in areas at high risk for
toxic lead exposure;

(3) plans for the provision of swab team services for
primary and secondary prevention as required under subdivision
4;

(4) plans for supervision, training, career development,
and postprogram placement of swab team members;

(5) plans for resident and property owner education on lead
safety;

(6) plans for distributing cleaning supplies to area
residents and educating residents and property owners on
cleaning techniques;

(7) sources of other funding and cost estimates for
training, lead inspections, swab team services, equipment,
monitoring, testing, and administration;

(8) measures of program effectiveness;

(9) coordination of program activities with other federal,
state, and local public health, job training, apprenticeship,
and housing renovation programs including programs under
sections 116L.86 to 116L.881; and

(10) prior experience in providing swab team services.

Sec. 4.

Minnesota Statutes 2004, section 119A.46,
subdivision 8, is amended to read:

Subd. 8.

Testing and evaluation.

(a) Testing of the
environment is not necessary by swab teams whose work is
assigned by the commissioner of health or a designated board of
health under section 144.9504. The commissioner of health or
designated board of health must share the analytical testing
data collected on each residence for purposes of secondary
prevention under section 144.9504 with the swab team workers in
order to provide constructive feedback on their work and to the
commissioner for the purposes set forth in paragraph (c).

(b) For purposes of primary prevention evaluation, the
following samples must be collected: pretesting and posttesting
of one noncarpeted floor dust lead sample and a notation of the
extent and location of bare soil and of deteriorated lead-based
paint. The analytical testing data collected on each residence
for purposes of primary prevention under section 144.9503 must
be shared with the swab team workers in order to provide
constructive feedback on their work and to the commissioner for
the purposes set forth in paragraph (c).

(c) The commissioner of health must establish a program deleted text begin in
cooperation with the commissioner deleted text end to collect appropriate data as
required under paragraphs (a) and (b), in order to conduct an
ongoing evaluation of swab team services for primary and
secondary prevention. Within the limits of available
appropriations, the commissioner of health must conduct deleted text begin or
contract with the commissioner, deleted text end on up to 1,000 residences which
have received primary or secondary prevention swab team
services, a postremediation evaluation, on at least a quarterly
basis for a period of at least two years for each residence.
The evaluation must note the condition of the paint within the
residence, the extent of bare soil on the grounds, and collect
and analyze one noncarpeted floor dust lead sample. The data
collected must be evaluated to determine the efficacy of
providing swab team services as a method of reducing lead
exposure in young children. In evaluating this data, the
commissioner of health must consider city size, community
location, historic traffic flow, soil lead level of the property
by area or census tract, distance to industrial point sources
that emit lead, season of the year, age of the housing, age and
number of children living at the residence, the presence of pets
that move in and out of the residence, and other relevant
factors as the commissioner of health may determine.

Sec. 5.

Minnesota Statutes 2004, section 124D.20,
subdivision 3, is amended to read:

Subd. 3.

General community education revenue.

The
general community education revenue for a district equals deleted text begin $5.95
for fiscal year 2003 and 2004 and deleted text end $5.23 for fiscal deleted text begin year deleted text end new text begin years
new text end 2005 new text begin and 2006 new text end and new text begin $6.00 for fiscal year 2007 and new text end later, times
the greater of 1,335 or the population of the district. The
population of the district is determined according to section
275.14.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for revenue for
fiscal year 2007.
new text end

Sec. 6. new text begin APPROPRIATION.
new text end

new text begin Subdivision 1. new text end

new text begin Department of education. new text end

new text begin The sums
indicated in this section are appropriated from the general fund
to the Department of Education for the fiscal years designated.
new text end

new text begin Subd. 2. new text end

new text begin Community education aid. new text end

new text begin For community
education aid under Minnesota Statutes, section 124D.20:
new text end

new text begin $1,918,000 new text end new text begin ..... new text end new text begin 2006
new text end

new text begin $1,837,000 new text end new text begin ..... new text end new text begin 2007
new text end

new text begin The 2006 appropriation includes $390,000 for 2005 and
$1,528,000 for 2006.
new text end

new text begin The 2007 appropriation includes $284,000 for 2006 and
$1,553,000 for 2007.
new text end

new text begin Subd. 3. new text end

new text begin Adults with disabilities program aid. new text end

new text begin For
adults with disabilities programs under Minnesota Statutes,
section 124D.56:
new text end

new text begin $ 710,000 new text end new text begin ..... new text end new text begin 2006
new text end

new text begin $ 710,000 new text end new text begin ..... new text end new text begin 2007
new text end

new text begin The 2006 appropriation includes $111,000 for 2005 and
$599,000 for 2006.
new text end

new text begin The 2007 appropriation includes $111,000 for 2006 and
$599,000 for 2007.
new text end

new text begin Subd. 4. new text end

new text begin Hearing-impaired adults. new text end

new text begin For programs for
hearing-impaired adults under Minnesota Statutes, section
124D.57:
new text end

new text begin $ 70,000 new text end new text begin ..... new text end new text begin 2006
new text end

new text begin $ 70,000 new text end new text begin ..... new text end new text begin 2007
new text end

new text begin Subd. 5. new text end

new text begin School-age care revenue. new text end

new text begin For extended day aid
under Minnesota Statutes, section 124D.22:
new text end

new text begin $ 17,000 new text end new text begin ..... new text end new text begin 2006
new text end

new text begin $ 7,000 new text end new text begin ..... new text end new text begin 2007
new text end

new text begin The 2006 appropriation includes $4,000 for 2005 and $13,000
for 2006.
new text end

new text begin The 2007 appropriation includes $2,000 for 2006 and $5,000
for 2007.
new text end

ARTICLE 9

SELF-SUFFICIENCY AND LIFELONG LEARNING

Section 1.

Minnesota Statutes 2004, section 124D.52,
subdivision 3, is amended to read:

Subd. 3.

Accounts; revenue; aid.

(a) Each district,
group of districts, or private nonprofit organization providing
adult basic education programs must establish and maintain a
reserve account within the community service fund for the
receipt and disbursement of all funds related to these
programs. All revenue received pursuant to this section must be
utilized solely for the purposes of adult basic education
programs. State aid must not equal more than 100 percent of the
unreimbursed expenses of providing these programs, excluding
in-kind costs.

(b) new text begin For purposes of paragraph (a), an adult basic education
program may include as valid expenditures for the previous
fiscal year program spending that occurs from July 1 to
September 30 of the following year. Program spending may only
be counted for one fiscal year.
new text end

new text begin (c) new text end Notwithstanding section 123A.26 or any other law to the
contrary, an adult basic education consortium providing an
approved adult basic education program may be its own fiscal
agent and is eligible to receive state-aid payments directly
from the commissioner.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day
following final enactment.
new text end

Sec. 2.

Minnesota Statutes 2004, section 124D.531,
subdivision 1, is amended to read:

Subdivision 1.

State total adult basic education aid.

(a) The state total adult basic education aid for fiscal year
deleted text begin 2004 equals $34,388,000. The state total adult basic education
aid for fiscal year deleted text end 2005 deleted text begin and later deleted text end is $36,509,000. new text begin The state
total adult basic education aid for fiscal year 2006 and later
is $36,518,000 plus any amount that is not paid for during the
previous fiscal year, as a result of adjustments under
subdivision 4, paragraph (a), or section 124D.52, subdivision
3. new text end Beginning in fiscal year 2002, two percent of the state
total adult basic education aid must be set aside for adult
basic education supplemental service grants under section
124D.522.

(b) The state total adult basic education aid, excluding
basic population aid, equals the difference between the amount
computed in paragraph (a), and the state total basic population
aid under subdivision 2.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day
following final enactment and applies to revenue distributions
for fiscal year 2006.
new text end

Sec. 3.

Minnesota Statutes 2004, section 124D.531,
subdivision 4, is amended to read:

Subd. 4.

Adult basic education program aid limit.

(a)
Notwithstanding subdivisions 2 and 3, the total adult basic
education aid for a program per prior year contact hour must not
exceed $21 per prior year contact hour computed under
subdivision 3, clause (2).

(b) For fiscal year 2004, the aid for a program under
subdivision 3, clause (2), adjusted for changes in program
membership, must not exceed the aid for that program under
subdivision 3, clause (2), for fiscal year 2003 by more than the
greater of eight percent or $10,000.

(c) For fiscal year 2005, the aid for a program under
subdivision 3, clause (2), adjusted for changes in program
membership, must not exceed the sum of the aid for that program
under subdivision 3, clause (2), and Laws 2003, First Special
Session chapter 9, article 9, section 8, paragraph (a), for the
preceding fiscal year by more than the greater of eight percent
or $10,000.

(d) For fiscal year 2006 and later, the aid for a program
under subdivision 3, clause (2), adjusted for changes in program
membership, must not exceed the aid for that program under
subdivision 3, clause (2), for the first preceding fiscal year
by more than the greater of eight percent or $10,000.

(e) Adult basic education aid is payable to a program for
unreimbursed costs new text begin occurring in the program year as defined in
section 124D.52, subdivision 3 new text end .

new text begin (f) Any adult basic education aid that is not paid to a
program because of the program aid limitation under paragraph
(a) must be added to the state total adult basic education aid
for the next fiscal year under subdivision 1. Any adult basic
education aid that is not paid to a program because of the
program aid limitations under paragraph (b), (c), or (d), must
be reallocated among programs by adjusting the rate per contact
hour under subdivision 3, clause (2).
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day
following final enactment and applies to revenue distributions
for fiscal year 2006.
new text end

Sec. 4. new text begin GRANTS FOR INTENSIVE ENGLISH INSTRUCTION FOR NEW
ADULT REFUGEES.
new text end

new text begin The commissioner of education shall establish a
reimbursement grant program to fund intensive English as a
second language (ESL) programs for adult refugees. Intensive
ESL programming must provide intensive instruction for adult
refugees who are making inadequate literacy progress as measured
by a standard assessment test. The intensive instruction must
be focused on participants gaining sufficient literacy to
achieve self-sufficiency through employment.
new text end

new text begin Organizations eligible for grants under this section
include adult basic education programs, school districts,
postsecondary institutions, and nonprofit or community-based
organizations or other private organizations with experience in
providing English language instruction to non-English speaking
immigrants and refugees. Grant applications must contain
information required by the commissioner in the form prescribed
by the commissioner. At a minimum, the application must
document experience in literacy programs serving immigrants and
refugees, describe fiscal accounting systems and reporting
capacity, ensure that administrative expenses are limited to
five percent of grant funds, and provide a description of the
proposed instructional services and training plans. Funds must
be paid to programs on a reimbursement basis. The grant program
expires on June 30, 2007.
new text end

Sec. 5. new text begin REVISOR'S INSTRUCTION.
new text end

new text begin In the next edition of Minnesota Statutes, the revisor of
statutes shall renumber Minnesota Statutes, section 119A.46, as
section 144.9512 and make necessary cross-reference changes.
new text end

Sec. 6. new text begin APPROPRIATIONS.
new text end

new text begin Subdivision 1. new text end

new text begin Department of education. new text end

new text begin The sums
indicated in this section are appropriated from the general fund
to the Department of Education for the fiscal years designated.
new text end

new text begin Subd. 2. new text end

new text begin Adult basic education aid. new text end

new text begin For adult basic
education aid under Minnesota Statutes:
new text end

new text begin $36,518,000 new text end new text begin ..... new text end new text begin 2006
new text end

new text begin $36,540,000 new text end new text begin ..... new text end new text begin 2007
new text end

new text begin The 2006 appropriation includes $5,707,000 for 2005 and
$30,811,000 for 2006.
new text end

new text begin The 2007 appropriation includes $5,737,000 for 2006 and
$30,803,000 for 2007.
new text end

new text begin Subd. 3. new text end

new text begin Ged tests. new text end

new text begin For payment of 60 percent of the
costs of GED tests under Laws 1993, chapter 224, article 4,
section 44, subdivision 10:
new text end

new text begin $ 125,000 new text end new text begin ..... new text end new text begin 2006
new text end

new text begin $ 125,000 new text end new text begin ..... new text end new text begin 2007
new text end

new text begin Subd. 4. new text end

new text begin Lead hazard reduction. new text end

new text begin For lead hazard
reduction under Minnesota Statutes, section 119A.46:
new text end

new text begin $ 100,000 new text end new text begin ..... new text end new text begin 2006
new text end

new text begin $ 100,000 new text end new text begin ..... new text end new text begin 2007
new text end

new text begin Any balance in the first year does not cancel but is
available in the second year. The commissioner of education may
transfer this appropriation to the commissioner of health.
new text end

new text begin Subd. 5. new text end

new text begin Intensive english instruction. new text end

new text begin For grants for
intensive English instruction for adult refugees under section 4:
new text end

new text begin $1,000,000 new text end new text begin ..... new text end new text begin 2006
new text end

new text begin $1,000,000 new text end new text begin ..... new text end new text begin 2007
new text end

ARTICLE 10

STATE AGENCIES

Section 1.

Minnesota Statutes 2004, section 122A.09,
subdivision 4, is amended to read:

Subd. 4.

License and rules.

(a) The board must adopt
rules to license public school teachers and interns subject to
chapter 14.

(b) The board must adopt rules requiring a person to
successfully complete a skills examination in reading, writing,
and mathematics as a requirement for initial teacher licensure.
Such rules must require college and universities offering a
board-approved teacher preparation program to provide remedial
assistance to persons who did not achieve a qualifying score on
the skills examination, including those for whom English is a
second language.

(c) The board must adopt rules to approve teacher
preparation programs. The board, upon the request of a
postsecondary student preparing for teacher licensure or a
licensed graduate of a teacher preparation program, shall assist
in resolving a dispute between the person and a postsecondary
institution providing a teacher preparation program when the
dispute involves an institution's recommendation for licensure
affecting the person or the person's credentials. At the
board's discretion, assistance may include the application of
chapter 14.

(d) The board must provide the leadership and shall adopt
rules for the redesign of teacher education programs to
implement a research based, results-oriented curriculum that
focuses on the skills teachers need in order to be effective.
The board shall implement new systems of teacher preparation
program evaluation to assure program effectiveness based on
proficiency of graduates in demonstrating attainment of program
outcomes.

(e) The board must adopt rules requiring successful
completion of an examination of general pedagogical knowledge
and examinations of licensure-specific teaching skills. The
rules shall be effective on the dates determined by the board
but not later than September 1, 2001.

(f) The board must adopt rules requiring teacher educators
to work directly with elementary or secondary school teachers in
elementary or secondary schools to obtain periodic exposure to
the elementary or secondary teaching environment.

(g) The board must grant licenses to interns and to
candidates for initial licenses.

(h) The board must design and implement an assessment
system which requires a candidate for an initial license and
first continuing license to demonstrate the abilities necessary
to perform selected, representative teaching tasks at
appropriate levels.

(i) The board must receive recommendations from local
committees as established by the board for the renewal of
teaching licenses.

(j) The board must grant life licenses to those who qualify
according to requirements established by the board, and suspend
or revoke licenses pursuant to sections 122A.20 and 214.10. The
board must not establish any expiration date for application for
life licenses.

(k) The board must adopt rules that require all licensed
teachers who are renewing their continuing license to include in
their renewal requirements further preparation in the areas of
using positive behavior interventions and in accommodating,
modifying, and adapting curricula, materials, and strategies to
appropriately meet the needs of individual students and ensure
adequate progress toward the state's graduation rule.

(l) In adopting rules to license public school teachers who
provide health-related services for disabled children, the board
shall adopt rules consistent with license or registration
requirements of the commissioner of health and the
health-related boards who license personnel who perform similar
services outside of the school.

(m) The board must adopt rules that require all licensed
teachers who are renewing their continuing license to include in
their renewal requirements further reading preparation,
consistent with section 122A.06, subdivision 4. The rules do
not take effect until they are approved by law. Teachers who do
not provide direct instruction including, at least, counselors,
school psychologists, school nurses, school social workers,
audiovisual directors and coordinators, and recreation personnel
are exempt from this section.

(n) The board must adopt rules that require all licensed
teachers who are renewing their continuing license to include in
their renewal requirements further preparation in understanding
the key warning signs of early-onset mental illness in children
and adolescents.

new text begin (o) The board, in consultation with the department,
representatives of innovative schools and programs as determined
by the board, and representatives of charter schools,
alternative schools, small schools, and rural schools, must
adopt rules to create an interdisciplinary teaching license.
new text end

Sec. 2.

Minnesota Statutes 2004, section 122A.09,
subdivision 10, is amended to read:

Subd. 10.

Variances.

(a) Notwithstanding subdivision 9
and section 14.05, subdivision 4, the Board of Teaching may
grant a variance to its rules upon application by a school
district for purposes of implementing experimental programs in
learning or management.

(b) To enable a school district to meet the needs of
students enrolled in an alternative education program and to
enable licensed teachers instructing those students to satisfy
content area licensure requirements, the Board of Teaching
annually may permit a licensed teacher teaching in an
alternative education program to instruct students in a content
area for which the teacher is not licensed, consistent with
paragraph (a).

new text begin (c) A special education license variance issued by the
Board of Teaching for a primary employer's low-incidence region
shall be valid in all low-incidence regions.
new text end

Sec. 3.

new text begin [122A.245] TEACHER TRAINING PROGRAM FOR QUALIFIED
PROFESSIONALS.
new text end

new text begin Subdivision 1. new text end

new text begin Scope and requirements. new text end

new text begin (a) As an
alternative to postsecondary teacher preparation programs, a
teacher training program is established for qualified
professionals to acquire an entrance license. Program
providers, approved by the Board of Teaching under subdivision
3, may offer the program in the instructional fields of science,
mathematics, world languages, English as a second language, and
special education.
new text end

new text begin (b) To participate in the teacher training program, the
teacher applicant must:
new text end

new text begin (1) have, at a minimum, a bachelor's degree from an
accredited four-year postsecondary institution;
new text end

new text begin (2) have an undergraduate major or postbaccalaureate degree
in the subject to be taught or in an equivalent or related
subject area in which the applicant is seeking licensure;
new text end

new text begin (3) pass a skills examination in reading, writing, and
mathematics required under section 122A.18;
new text end

new text begin (4) pass the Praxis II subject assessment for each subject
area to be taught;
new text end

new text begin (5) have a cumulative grade point average of 2.75 or higher
on a 4.0 scale for a bachelor's degree;
new text end

new text begin (6) show employment related to the subject to be taught;
and
new text end

new text begin (7) show a district offer for employment as a teacher
contingent on participating in an approved program described in
subdivision 2.
new text end

new text begin Subd. 2. new text end

new text begin Program. new text end

new text begin A teacher training program under this
section is one year in duration and must include:
new text end

new text begin (1) a nine-credit summer or preinduction preparation
program that includes classroom management techniques and
on-site classroom observation that are completed before the
candidate is employed in the classroom;
new text end

new text begin (2) 200 clock hours of instruction in standards of
effective practice and essential skills that include curriculum,
instructional strategies, and classroom management presented
after school or on Saturdays throughout the year leading to a
teaching license and up to 15 graduate credits toward a master's
degree in education;
new text end

new text begin (3) on-the-job mentoring, supervision, and evaluation
arranged by the employing district that includes mentoring
provided by an experienced teacher licensed in the subject
taught by the applicant, and three evaluations by an evaluation
team composed of the mentor, the principal, and a training
program member that include at least three classroom
observations where the third evaluation contains the team's
recommendation for licensure and where a written report of each
evaluation is prepared; and
new text end

new text begin (4) a one-week intensive workshop that includes analysis
and reflection of the first year of teaching after completing
the school year, which may be counted as part of 200 clock hours
required in clause (2).
new text end

new text begin Subd. 3. new text end

new text begin Program approval. new text end

new text begin An interested Minnesota
public or private postsecondary institution must submit program
proposals to the Board of Teaching for approval.
new text end

new text begin Notwithstanding any law to the contrary, the Board of
Teaching must develop criteria for approving teacher training
programs under this section after considering the
recommendations of an advisory group appointed by the Board of
Teaching composed of, at a minimum, the commissioner of
education or designee, and representatives of school
superintendents, principals, teachers, and postsecondary
institutions, including those offering degrees in teaching
preparation.
new text end

new text begin Subd. 4. new text end

new text begin Eligibility license. new text end

new text begin Notwithstanding any law to
the contrary, the Board of Teaching must issue to an applicant
who successfully meets the criteria under subdivision 1,
paragraph (b), a one-year eligibility license to teach at the
employing district under subdivision 1, paragraph (b), clause
(7). During the one-year eligibility period, the employing
district must assign a mentor under subdivision 2, clause (3).
The applicant teacher and teacher mentor must meet at least
weekly throughout the school year on classroom and instructional
issues.
new text end

new text begin The hiring district may deduct from the participant's
salary the cost of providing the mentor for the participant
during the training year.
new text end

new text begin Subd. 5. new text end

new text begin Standard entrance license. new text end

new text begin Notwithstanding any
law to the contrary, the Board of Teaching must issue a standard
entrance license to a training program licensee who successfully
completes the program under subdivision 2, successfully teaches
in a classroom for one complete school year, successfully passes
the Praxis II principles of learning and teaching, and receives
a positive recommendation from the applicant's evaluation team.
new text end

new text begin Subd. 6. new text end

new text begin Qualified teacher. new text end

new text begin A person with a valid
eligibility license under subdivision 5 is a qualified teacher
under section 122A.16.
new text end

Sec. 4.

Minnesota Statutes 2004, section 122A.40,
subdivision 5, is amended to read:

Subd. 5.

Probationary period.

(a) The first three
consecutive years of a teacher's first teaching experience in
Minnesota in a single district is deemed to be a probationary
period of employment, and after completion thereof, the
probationary period in each district in which the teacher is
thereafter employed shall be one year. The school board must
adopt a plan for written evaluation of teachers during the
probationary period. Evaluation must occur at least three times
each year for a teacher performing services on 120 or more
school days, at least two times each year for a teacher
performing services on 60 to 119 school days, and at least one
time each year for a teacher performing services on fewer than
60 school days. Days devoted to parent-teacher conferences,
teachers' workshops, and other staff development opportunities
and days on which a teacher is absent from school must not be
included in determining the number of school days on which a
teacher performs services. Except as otherwise provided in
paragraph (b), during the probationary period any annual
contract with any teacher may or may not be renewed as the
school board shall see fit. However, the board must give any
such teacher whose contract it declines to renew for the
following school year written notice to that effect before July
1. If the teacher requests reasons for any nonrenewal of a
teaching contract, the board must give the teacher its reason in
writing, including a statement that appropriate supervision was
furnished describing the nature and the extent of such
supervision furnished the teacher during the employment by the
board, within ten days after receiving such request. The school
board may, after a hearing held upon due notice, discharge a
teacher during the probationary period for cause, effective
immediately, under section 122A.44.

(b) A board must discharge a probationary teacher,
effective immediately, upon receipt of notice under section
122A.20, subdivision 1, paragraph (b), that the teacher's
license has been revoked due to a conviction for child abuse or
sexual abuse.

new text begin (c) A probationary teacher must complete at least 60 days
of teaching service each year during the probationary period.
Days devoted to parent-teacher conferences, teachers' workshops,
and other staff development opportunities and days on which a
teacher is absent from school do not count as days of teaching
service under this paragraph.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2005.
new text end

Sec. 5.

Minnesota Statutes 2004, section 122A.41,
subdivision 2, is amended to read:

Subd. 2.

Probationary period; discharge or demotion.

new text begin (a)
new text end All teachers in the public schools in cities of the first class
during the first three years of consecutive employment shall be
deemed to be in a probationary period of employment during which
period any annual contract with any teacher may, or may not, be
renewed as the school board, after consulting with the peer
review committee charged with evaluating the probationary
teachers under subdivision 3, shall see fit. The school site
management team or the school board if there is no school site
management team, shall adopt a plan for a written evaluation of
teachers during the probationary period according to subdivision
3. Evaluation by the peer review committee charged with
evaluating probationary teachers under subdivision 3 shall occur
at least three times each year for a teacher performing services
on 120 or more school days, at least two times each year for a
teacher performing services on 60 to 119 school days, and at
least one time each year for a teacher performing services on
fewer than 60 school days. Days devoted to parent-teacher
conferences, teachers' workshops, and other staff development
opportunities and days on which a teacher is absent from school
shall not be included in determining the number of school days
on which a teacher performs services. The school board may,
during such probationary period, discharge or demote a teacher
for any of the causes as specified in this code. A written
statement of the cause of such discharge or demotion shall be
given to the teacher by the school board at least 30 days before
such removal or demotion shall become effective, and the teacher
so notified shall have no right of appeal therefrom.

new text begin (b) A probationary teacher must complete at least 60 days
of teaching service each year during the probationary period.
Days devoted to parent-teacher conferences, teachers' workshops,
and other staff development opportunities and days on which a
teacher is absent from school do not count as days of teaching
service under this paragraph.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2005.
new text end

Sec. 6. new text begin REPORT.
new text end

new text begin The Board of Teaching, in consultation with approved
alternative teacher training program providers and the
Department of Education, must evaluate the efficacy of the
alternative teacher training program under Minnesota Statutes,
section 122A.245, through the 2013-2014 school year and by
February 15, 2015, submit a written report to the kindergarten
through grade 12 education policy committees of the legislature
that includes, among other content, recommendations about
whether to extend or expand the alternative teacher training
program.
new text end

Sec. 7. new text begin LICENSED STUDENT SUPPORT SERVICES.
new text end

new text begin Subdivision 1. new text end

new text begin Access to services. new text end

new text begin School districts and
the Department of Education shall work to provide for students'
educational achievement, to provide for student safety, and to
enhance student physical, emotional, and social well-being by
providing access to licensed student support services, such as
licensed school nurses, licensed school counselors, licensed
school social workers, and licensed school psychologists.
new text end

new text begin Subd. 2. new text end

new text begin Funding. new text end

new text begin Districts and the department shall
explore opportunities for obtaining additional funds to improve
students' access to needed licensed student support services
including, but not limited to, medical assistance
reimbursements, local collaborative time study funds, federal
funds, public health funds, and specifically designated funds.
new text end

new text begin Subd. 3. new text end

new text begin Improving access. new text end

new text begin Districts and the department
must consider nationally recommended licensed staff-to-student
ratios, work loads, and best practices when working to improve
student access to needed licensed student support services.
new text end

Sec. 8. new text begin STATEWIDE STUDENT INFORMATION AND REPORTING
SYSTEM.
new text end

new text begin Subdivision 1. new text end

new text begin Working group convened. new text end

new text begin (a) The
commissioner of education must convene a working group composed
of:
new text end

new text begin (1) representatives from school districts, charter schools,
and area learning centers of diverse size and location chosen by
the commissioner;
new text end

new text begin (2) officials from the Department of Administration
Materials Management Division; and
new text end

new text begin (3) at least three citizens with a demonstrated expertise
in Web-based student information systems.
new text end

new text begin The working group must develop a plan to improve the quality and
decrease the cost of Minnesota's student information systems.
new text end

new text begin (b) When developing its plan under paragraph (a), the group
at least must determine whether the student information system:
new text end

new text begin (1) best operates as a single integrated management system
or a system with a specified number of vendors that seamlessly
transfer student data between school districts;
new text end

new text begin (2) includes a software license, technical support, and
also hardware on which the software runs;
new text end

new text begin (3) is run in each school district or at a central data
center; and
new text end

new text begin (4) can be run by private sector companies having access to
students' educational records.
new text end

new text begin Subd. 2. new text end

new text begin Request for proposals. new text end

new text begin The working group,
consistent with its determinations in subdivision 1, paragraph
(b), shall develop the framework for a request for proposal or
"RFP" for the student information and reporting system. The RFP
must require a vendor to implement a system that:
new text end

new text begin (1) meets all of the data collection and reporting
requirements of the Minnesota Automated Reporting Student
System;
new text end

new text begin (2) enhances state and federal student data collection;
new text end

new text begin (3) facilitates value-added assessment systems;
new text end

new text begin (4) ensures that the system has secure Web-based
capabilities for entering and editing data; and
new text end

new text begin (5) provides robust data management tools including
reporting features.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day
following final enactment.
new text end

Sec. 9. new text begin APPROPRIATIONS; DEPARTMENT OF EDUCATION.
new text end

new text begin Subdivision 1. new text end

new text begin Department of education. new text end

new text begin Unless otherwise
indicated, the sums indicated in this section are appropriated
from the general fund to the Department of Education for the
fiscal years designated.
new text end

new text begin Subd. 2. new text end

new text begin Department. new text end

new text begin (a) For the Department of Education:
new text end

new text begin $22,057,000 new text end new text begin ..... new text end new text begin 2006
new text end

new text begin $23,887,000 new text end new text begin ..... new text end new text begin 2007
new text end

new text begin Any balance in the first year does not cancel but is
available in the second year.
new text end

new text begin (b) $260,000 each year is for the Minnesota Children's
Museum.
new text end

new text begin (c) $41,000 each year is for the Minnesota Academy of
Science.
new text end

new text begin (d) $605,000 each year is for the Board of Teaching. In
addition, the commissioner must provide necessary resources to
complete rulemaking under Minnesota Statutes, section 122A.09,
subdivision 4.
new text end

new text begin (e) $160,000 each year is for the Board of School
Administrators.
new text end

new text begin (f) $10,000 in fiscal year 2006 and $15,000 in fiscal year
2007 are for administration of single purpose charter school
sponsors.
new text end

new text begin (g) $500,000 in fiscal year 2007 is for alternative teacher
licensure programs.
new text end

new text begin (h) $300,000 in fiscal year 2006 and $1,600,000 in fiscal
year 2007 are for value-added index assessment model.
new text end

new text begin (i) $50,000 in fiscal year 2006 and $75,000 in fiscal year
2007 are for the development and distribution to school
districts of materials addressing the dangers of methamphetamine.
new text end

new text begin (j) The expenditures of federal grants and aids as shown in
the biennial budget document and its supplements are approved
and appropriated and shall be spent as indicated.
new text end

Sec. 10. new text begin APPROPRIATIONS; MINNESOTA STATE ACADEMIES.
new text end

new text begin The sums indicated in this section are appropriated from
the general fund to the Minnesota State Academies for the Deaf
and the Blind for the fiscal years designated:
new text end

new text begin $11,078,000 new text end new text begin ..... new text end new text begin 2006
new text end

new text begin $11,153,000 new text end new text begin ..... new text end new text begin 2007
new text end

new text begin Any balance in the first year does not cancel but is
available in the second year.
new text end

Sec. 11. new text begin APPROPRIATIONS; PERPICH CENTER FOR ARTS
EDUCATION.
new text end

new text begin The sums indicated in this section are appropriated from
the general fund to the Perpich Center for Arts Education for
the fiscal years designated:
new text end

new text begin $6,255,000 new text end new text begin ..... new text end new text begin 2006
new text end

new text begin $6,255,000 new text end new text begin ..... new text end new text begin 2007
new text end

new text begin Any balance in the first year does not cancel but is
available in the second year.
new text end

Sec. 12. new text begin REPEALER.
new text end

new text begin Minnesota Statutes 2004, section 122A.24, is repealed.
new text end

ARTICLE 11

FORECAST DEFICIENCIES
A. GENERAL EDUCATION

Section 1.

Laws 2003, First Special Session chapter 9,
article 1, section 53, subdivision 2, as amended by Laws 2004,
chapter 272, article 1, section 1, is amended to read:

Subd. 2.

General education aid.

For general education
aid under Minnesota Statutes, section 126C.13, subdivision 4:

$4,726,466,000 ..... 2004

deleted text begin $5,026,983,000 deleted text end new text begin $5,281,781,000 new text end ..... 2005

The 2004 appropriation includes $860,552,000 for 2003 and
$3,865,914,000 for 2004.

The 2005 appropriation includes
deleted text begin $1,009,822,000 deleted text end new text begin $1,009,526,000 new text end for 2004
and deleted text begin $4,017,161,000 deleted text end new text begin $4,272,255,000 new text end for 2005.

Sec. 2.

Laws 2003, First Special Session chapter 9,
article 1, section 53, subdivision 3, as amended by Laws 2004,
chapter 272, article 1, section 2, is amended to read:

Subd. 3.

Referendum tax base replacement aid.

For
referendum tax base replacement aid under Minnesota Statutes,
section 126C.17, subdivision 7a:

$8,096,000 ..... 2004

deleted text begin $8,596,000 deleted text end new text begin $9,007,000 new text end ..... 2005

The 2004 appropriation includes $1,419,000 for 2003 and
$6,677,000 for 2004.

The 2005 appropriation includes $1,669,000 for 2004 and
deleted text begin $6,927,000 deleted text end new text begin $7,338,000 new text end for 2005.

Sec. 3.

Laws 2003, First Special Session chapter 9,
article 1, section 53, subdivision 11, as amended by Laws 2004,
chapter 272, article 1, section 5, is amended to read:

Subd. 11.

Nonpublic pupil aid.

For nonpublic pupil
education aid under Minnesota Statutes, sections 123B.40 to
123B.43 and 123B.87:

$14,411,000 ..... 2004

deleted text begin $15,072,000 deleted text end new text begin $15,304,000 new text end ..... 2005

The 2004 appropriation includes $2,715,000 for 2003 and
$11,696,000 for 2004.

The 2005 appropriation includes $2,923,000 for 2004 and
deleted text begin $12,149,000 deleted text end new text begin $12,381,000 new text end for 2005.

Sec. 4.

Laws 2003, First Special Session chapter 9,
article 1, section 53, subdivision 12, as amended by Laws 2004,
chapter 272, article 1, section 6, is amended to read:

Subd. 12.

Nonpublic pupil transportation.

For nonpublic
pupil transportation aid under Minnesota Statutes, section
123B.92, subdivision 9:

$20,471,000 ..... 2004

deleted text begin $21,421,000 deleted text end new text begin $21,703,000 new text end ..... 2005

The 2004 appropriation includes $3,990,000 for 2003 and
$16,481,000 for 2004.

The 2005 appropriation includes $4,120,000 for 2004 and
deleted text begin $17,301,000 deleted text end new text begin $17,583,000 new text end for 2005.
B. EDUCATION EXCELLENCE

Sec. 5.

Laws 2003, First Special Session chapter 9,
article 2, section 55, subdivision 2, as amended by Laws 2004,
chapter 272, article 1, section 7, is amended to read:

Subd. 2.

Charter school building lease aid.

For building
lease aid under Minnesota Statutes, section 124D.11, subdivision
4:

$16,753,000 ..... 2004

deleted text begin $21,347,000 deleted text end new text begin $21,410,000 new text end ..... 2005

The 2004 appropriation includes $2,524,000 for 2003 and
$14,229,000 for 2004.

The 2005 appropriation includes $3,557,000 for 2004 and
deleted text begin $17,790,000 deleted text end new text begin $17,853,000 new text end for 2005.

Sec. 6.

Laws 2003, First Special Session chapter 9,
article 2, section 55, subdivision 5, as amended by Laws 2004,
chapter 272, article 1, section 10, is amended to read:

Subd. 5.

Integration aid.

For integration aid under
Minnesota Statutes, section 124D.86, subdivision 5:

$55,911,000 ..... 2004

deleted text begin $55,893,000 deleted text end new text begin $57,756,000 new text end ..... 2005

The 2004 appropriation includes $8,428,000 for 2003 and
$47,483,000 for 2004.

The 2005 appropriation includes $11,870,000 for 2004 and
deleted text begin $44,023,000 deleted text end new text begin $45,886,000 new text end for 2005.

Sec. 7.

Laws 2003, First Special Session chapter 9,
article 2, section 55, subdivision 9, as amended by Laws 2004,
chapter 272, article 1, section 12, is amended to read:

Subd. 9.

Success for the future.

For American Indian
success for the future grants under Minnesota Statutes, section
124D.81:

$2,061,000 ..... 2004

deleted text begin $2,137,000 deleted text end new text begin $2,229,000 new text end ..... 2005

The 2004 appropriation includes $351,000 for 2003 and
$1,710,000 for 2004.

The 2005 appropriation includes $427,000 for 2004 and
deleted text begin $1,710,000 deleted text end new text begin $1,802,000 new text end for 2005.

Sec. 8.

Laws 2003, First Special Session chapter 9,
article 2, section 55, subdivision 12, as amended by Laws 2004,
chapter 272, article 1, section 13, is amended to read:

Subd. 12.

Tribal contract schools.

For tribal contract
school aid under Minnesota Statutes, section 124D.83:

$1,617,000 ..... 2004

deleted text begin $2,185,000 deleted text end new text begin $2,203,000 new text end ..... 2005

The 2004 appropriation includes $285,000 for 2003 and
$1,332,000 for 2004.

The 2005 appropriation includes $333,000 for 2004 and
deleted text begin $1,852,000 deleted text end new text begin $1,870,000 new text end for 2005.
C. SPECIAL PROGRAMS

Sec. 9.

Laws 2003, First Special Session chapter 9,
article 3, section 20, subdivision 2, is amended to read:

Subd. 2.

Special education; regular.

For special
education aid under Minnesota Statutes, section 125A.75:

$515,091,000 ..... 2004

deleted text begin $529,460,000 deleted text end new text begin $552,214,000 new text end ..... 2005

The 2004 appropriation includes $90,577,000 for 2003 and
$424,514,000 for 2004.

The 2005 appropriation includes $106,128,000 for 2004 and
deleted text begin $423,332,000 deleted text end new text begin $446,086,000 new text end for 2005.

Sec. 10.

Laws 2003, First Special Session chapter 9,
article 3, section 20, subdivision 4, as amended by Laws 2004,
chapter 272, article 1, section 14, is amended to read:

Subd. 4.

Aid for children with disabilities.

For aid
under Minnesota Statutes, section 125A.75, subdivision 3, for
children with disabilities placed in residential facilities
within the district boundaries for whom no district of residence
can be determined:

$2,311,000 ..... 2004

deleted text begin $2,550,000 deleted text end new text begin $3,155,000 new text end ..... 2005

If the appropriation for either year is insufficient, the
appropriation for the other year is available.

Sec. 11.

Laws 2003, First Special Session chapter 9,
article 3, section 20, subdivision 5, as amended by Laws 2004,
chapter 272, article 1, section 15, is amended to read:

Subd. 5.

Travel for home-based services.

For aid for
teacher travel for home-based services under Minnesota Statutes,
section 125A.75, subdivision 1:

$173,000 ..... 2004

deleted text begin $178,000 deleted text end new text begin $187,000 new text end ..... 2005

The 2004 appropriation includes $34,000 for 2003 and
$139,000 for 2004.

The 2005 appropriation includes $34,000 for 2004 and
deleted text begin $144,000 deleted text end new text begin $153,000 new text end for 2005.

Sec. 12.

Laws 2003, First Special Session chapter 9,
article 3, section 20, subdivision 8, as amended by Laws 2004,
chapter 272, article 1, section 18, is amended to read:

Subd. 8.

Transition for disabled students.

For aid for
transition programs for children with disabilities under
Minnesota Statutes, section 124D.454:

$8,570,000 ..... 2004

deleted text begin $8,760,000 deleted text end new text begin $9,176,000 new text end ..... 2005

The 2004 appropriation includes $1,516,000 for 2003 and
$7,054,000 for 2004.

The 2005 appropriation includes $1,763,000 for 2004 and
deleted text begin $6,997,000 deleted text end new text begin $7,413,000 new text end for 2005.

Sec. 13.

Laws 2003, First Special Session chapter 9,
article 3, section 20, subdivision 9, as amended by Laws 2004,
chapter 272, article 1, section 19, is amended to read:

Subd. 9.

Court-placed special education revenue.

For
reimbursing serving school districts for unreimbursed eligible
expenditures attributable to children placed in the serving
school district by court action under Minnesota Statutes,
section 125A.79, subdivision 4:

$36,000 ..... 2004

deleted text begin $61,000 deleted text end new text begin $62,000 new text end ..... 2005
D. FACILITIES AND TECHNOLOGY

Sec. 14.

Laws 2003, First Special Session chapter 9,
article 4, section 31, subdivision 2, as amended by Laws 2004,
chapter 272, article 1, section 21, is amended to read:

Subd. 2.

Health and safety revenue.

For health and
safety aid according to Minnesota Statutes, section 123B.57,
subdivision 5:

$5,356,000 ..... 2004

deleted text begin $1,920,000 deleted text end new text begin $2,099,000 new text end ..... 2005

The 2004 appropriation includes $1,516,000 for 2003 and
$3,840,000 for 2004.

The 2005 appropriation includes $960,000 for 2004 and
deleted text begin $960,000 deleted text end new text begin $1,139,000 new text end for 2005.

Sec. 15.

Laws 2003, First Special Session chapter 9,
article 4, section 31, subdivision 3, as amended by Laws 2004,
chapter 272, article 1, section 22, is amended to read:

Subd. 3.

Debt service equalization.

For debt service aid
according to Minnesota Statutes, section 123B.53, subdivision 6:

$35,598,000 ..... 2004

deleted text begin $31,220,000 deleted text end new text begin $32,495,000 new text end ..... 2005

The 2004 appropriation includes $5,586,000 for 2003 and
$30,012,000 for 2004.

The 2005 appropriation includes $7,503,000 for 2004 and
deleted text begin $23,717,000 deleted text end new text begin $24,992,000 new text end for 2005.

Sec. 16.

Laws 2003, First Special Session chapter 9,
article 4, section 31, subdivision 4, is amended to read:

Subd. 4.

Alternative facilities bonding aid.

For
alternative facilities bonding aid, according to Minnesota
Statutes, section 123B.59, subdivision 1:

$18,708,000 ..... 2004

deleted text begin $19,287,000 deleted text end new text begin $20,116,000 new text end ..... 2005

The 2004 appropriation includes $3,278,000 for 2003 and
$15,430,000 for 2004.

The 2005 appropriation includes $3,857,000 for 2004 and
deleted text begin $15,430,000 deleted text end new text begin $16,259,000 new text end for 2005.
E. NUTRITION, SCHOOL ACCOUNTING, OTHER PROGRAMS

Sec. 17.

Laws 2003, First Special Session chapter 9,
article 5, section 35, subdivision 3, as amended by Laws 2004,
chapter 272, article 1, section 24, is amended to read:

Subd. 3.

Traditional school breakfast; kindergarten
milk.

For traditional school breakfast aid and kindergarten
milk under Minnesota Statutes, sections 124D.1158 and 124D.118:

$4,382,000 ..... 2004

deleted text begin $4,460,000 deleted text end new text begin $4,548,000 new text end ..... 2005
F. LIBRARIES

Sec. 18.

Laws 2003, First Special Session chapter 9,
article 6, section 4, as amended by Laws 2004, chapter 272,
article 1, section 25, and Laws 2004, chapter 286, section 3, is
amended to read:

Sec. 4. new text begin APPROPRIATIONS.
new text end

Subdivision 1.

Department of education.

The sums
indicated in this section are appropriated from the general fund
to the department of education for the fiscal years designated.

Subd. 2.

Basic system support.

For basic system support
grants under Minnesota Statutes, section 134.355:

$8,312,000 ..... 2004

deleted text begin $8,570,000 deleted text end new text begin $8,939,000 new text end ..... 2005

The 2004 appropriation includes $1,456,000 for 2003 and
$6,856,000 for 2004.

The 2005 appropriation includes $1,714,000 for 2004 and
deleted text begin $6,856,000 deleted text end new text begin $7,225,000 new text end for 2005.

Subd. 3.

Regional library telecommunications aid.

For
regional library telecommunications aid under Minnesota
Statutes, section 134.355:

$960,000 ..... 2004

deleted text begin $1,200,000 deleted text end new text begin $1,252,000 new text end ..... 2005

The 2004 appropriation includes $960,000 for 2004.

The 2005 appropriation includes $240,000 for 2004 and
deleted text begin $960,000 deleted text end new text begin $1,012,000 new text end for 2005.

Subd. 4.

Multicounty, multitype library systems.

For
grants according to Minnesota Statutes, sections 134.353 and
134.354, to multicounty, multitype library systems:

$876,000 ..... 2004

deleted text begin $903,000 deleted text end new text begin $942,000 new text end ..... 2005

The 2004 appropriation includes $153,000 for 2003 and
$723,000 for 2004.

The 2005 appropriation includes $180,000 for 2004 and
deleted text begin $723,000 deleted text end new text begin $762,000 new text end for 2005.

Subd. 5.

Electronic library for minnesota.

For statewide
licenses to on-line databases selected in cooperation with the
higher education services office for school media centers,
public libraries, state government agency libraries, and public
or private college or university libraries:

$400,000 ..... 2004

$400,000 ..... 2005

Any balance in the first year does not cancel but is
available in the second year.
G. EARLY CHILDHOOD FAMILY SUPPORT

Sec. 19.

Laws 2003, First Special Session chapter 9,
article 7, section 11, subdivision 2, is amended to read:

Subd. 2.

School readiness.

For revenue for school
readiness programs under Minnesota Statutes, sections 124D.15
and 124D.16:

$ 9,536,000 ..... 2004

deleted text begin $ 9,258,000 deleted text end new text begin $9,594,000 new text end ..... 2005

The 2004 appropriation includes $1,605,000 for 2003 and
$7,931,000 for 2004.

The 2005 appropriation includes $1,982,000 for 2004 and
deleted text begin $7,276,000 deleted text end new text begin $7,612,000 new text end for 2005.

Sec. 20.

Laws 2003, First Special Session chapter 9,
article 7, section 11, subdivision 4, is amended to read:

Subd. 4.

Health and developmental screening aid.

For
health and developmental screening aid under Minnesota Statutes,
sections 121A.17 and 121A.19:

$2,581,000 ..... 2004

deleted text begin $2,661,000 deleted text end new text begin $2,776,000 new text end ..... 2005

The 2004 appropriation includes $452,000 for 2003 and
$2,129,000 for 2004.

The 2005 appropriation includes $532,000 for 2004 and
deleted text begin $2,129,000 deleted text end new text begin $2,244,000 new text end for 2005.
H. PREVENTION

Sec. 21.

Laws 2003, First Special Session chapter 9,
article 8, section 7, subdivision 2, as amended by Laws 2004,
chapter 272, article 1, section 27, is amended to read:

Subd. 2.

Community education aid.

For community
education aid under Minnesota Statutes, section 124D.20:

$5,351,000 ..... 2004

deleted text begin $3,137,000 deleted text end new text begin $3,198,000 new text end ..... 2005

The 2004 appropriation includes $956,000 for 2003 and
$4,395,000 for 2004.

The 2005 appropriation includes $1,098,000 for 2004 and
deleted text begin $2,039,000 deleted text end new text begin $2,100,000 new text end for 2005.

Sec. 22.

Laws 2003, First Special Session chapter 9,
article 8, section 7, subdivision 3, is amended to read:

Subd. 3.

Adults with disabilities program aid.

For
adults with disabilities programs under Minnesota Statutes,
section 124D.56:

$688,000 ..... 2004

deleted text begin $710,000 deleted text end new text begin $741,000 new text end ..... 2005

The 2004 appropriation includes $120,000 for 2003 and
$568,000 for 2004.

The 2005 appropriation includes $142,000 for 2004 and
deleted text begin $568,000 deleted text end new text begin $599,000 new text end for 2005.

Sec. 23.

Laws 2003, First Special Session chapter 9,
article 8, section 7, subdivision 5, as amended by Laws 2004,
chapter 272, article 1, section 28, is amended to read:

Subd. 5.

School-age care revenue.

For extended day care
aid under Minnesota Statutes, section 124D.22:

$40,000 ..... 2004

deleted text begin $24,000 deleted text end new text begin $30,000 new text end ..... 2005

The 2004 appropriation includes $14,000 for 2003 and
$26,000 for 2004.

The 2005 appropriation includes $6,000 for 2004 and
deleted text begin $18,000 deleted text end new text begin $24,000 new text end for 2005.
I. SELF-SUFFICIENCY AND LIFELONG LEARNING

Sec. 24.

Laws 2003, First Special Session chapter 9,
article 9, section 9, subdivision 2, as amended by Laws 2004,
chapter 272, article 1, section 29, is amended to read:

Subd. 2.

Adult basic education aid.

For adult basic
education aid under Minnesota Statutes, section 124D.52, in
fiscal year 2004 and Minnesota Statutes, section 124D.531, in
fiscal year 2005:

$33,014,000 ..... 2004

deleted text begin $35,808,000 deleted text end new text begin $37,444,000 new text end ..... 2005

The 2004 appropriation includes $5,827,000 for 2003 and
$27,187,000 for 2004.

The 2005 appropriation includes $6,796,000 for 2004 and
deleted text begin $29,012,000 deleted text end new text begin $30,648,000 new text end for 2005.

Sec. 25. new text begin EFFECTIVE DATE.
new text end

new text begin Sections 1 to 24 are effective the day following final
enactment.
new text end

ARTICLE 12

TECHNICAL AND CONFORMING AMENDMENTS

Section 1.

Minnesota Statutes 2004, section 120B.31,
subdivision 4, is amended to read:

Subd. 4.

Statistical adjustments.

In developing policies
and assessment processes to hold schools and districts
accountable for high levels of academic standards deleted text begin , including the
profile of learning deleted text end new text begin under section 120B.021 new text end , the commissioner
shall aggregate student data over time to report student
performance levels measured at the school district, regional, or
statewide level. When collecting and reporting the data, the
commissioner shall: (1) acknowledge the impact of significant
demographic factors such as residential instability, the number
of single parent families, parents' level of education, and
parents' income level on school outcomes; and (2) organize and
report the data so that state and local policy makers can
understand the educational implications of changes in districts'
demographic profiles over time. Any report the commissioner
disseminates containing summary data on student performance must
integrate student performance and the demographic factors that
strongly correlate with that performance.

Sec. 2.

Minnesota Statutes 2004, section 121A.41,
subdivision 10, is amended to read:

Subd. 10.

Suspension.

"Suspension" means an action by
the school administration, under rules promulgated by the school
board, prohibiting a pupil from attending school for a period of
no more than ten school days. If a suspension is longer than
five days, the suspending administrator must provide the
superintendent with a reason for the longer suspension. This
definition does not apply to dismissal from school for one
school day or less, except as provided in federal law for a
student with a disability. Each suspension action may include a
readmission plan. The readmission plan shall include, where
appropriate, a provision for implementing alternative
educational services upon readmission and may not be used to
extend the current suspension. Consistent with section
deleted text begin 125A.09 deleted text end new text begin 125A.091 new text end , subdivision deleted text begin 3 deleted text end new text begin 5 new text end , the readmission plan must not
obligate a parent to provide a sympathomimetic medication for
the parent's child as a condition of readmission. The school
administration may not impose consecutive suspensions against
the same pupil for the same course of conduct, or incident of
misconduct, except where the pupil will create an immediate and
substantial danger to self or to surrounding persons or
property, or where the district is in the process of initiating
an expulsion, in which case the school administration may extend
the suspension to a total of 15 days. In the case of a student
with a disability, the student's individual education plan team
must meet immediately but not more than ten school days after
the date on which the decision to remove the student from the
student's current education placement is made. The individual
education plan team and other qualified personnel shall at that
meeting: conduct a review of the relationship between the
child's disability and the behavior subject to disciplinary
action; and determine the appropriateness of the child's
education plan.

The requirements of the individual education plan team
meeting apply when:

(1) the parent requests a meeting;

(2) the student is removed from the student's current
placement for five or more consecutive days; or

(3) the student's total days of removal from the student's
placement during the school year exceed ten cumulative days in a
school year. The school administration shall implement
alternative educational services when the suspension exceeds
five days. A separate administrative conference is required for
each period of suspension.

Sec. 3.

Minnesota Statutes 2004, section 124D.40, is
amended to read:

124D.40 YOUTH WORKS GRANTS.

Subdivision 1.

Application.

An eligible organization
interested in receiving a grant under sections 124D.39 to
124D.44 may prepare and submit new text begin an application new text end to the commission
deleted text begin an application that complies with section 124D.41 deleted text end .

Subd. 2.

Grant authority.

The commission must use any
state appropriation and any available federal funds, including
any grant received under federal law, to award grants to
establish programs for youth works deleted text begin meeting the requirements of
section 124D.41 deleted text end . At least one grant each must be available for
a metropolitan proposal, a rural proposal, and a statewide
proposal. If a portion of the suburban metropolitan area is not
included in the metropolitan grant proposal, the statewide grant
proposal must incorporate at least one suburban metropolitan
area. In awarding grants, the commission may select at least
one residential proposal and one nonresidential proposal deleted text begin ,
provided the proposals meet or exceed the criteria in section
124D.41 deleted text end .

Sec. 4.

Minnesota Statutes 2004, section 127A.41,
subdivision 8, is amended to read:

Subd. 8.

Appropriation transfers.

(a) If a direct
appropriation from the general fund to the department for any
education aid or grant authorized in this chapter and chapters
122A, 123A, 123B, 124D, 125A, 126C, and 134, excluding
appropriations under sections 124D.135, 124D.16, 124D.20,
deleted text begin 124D.21, deleted text end 124D.22, 124D.52, 124D.531, deleted text begin 124D.54, deleted text end 124D.55, and
124D.56, exceeds the amount required, the commissioner may
transfer the excess to any education aid or grant appropriation
that is insufficient. However, section 126C.20 applies to a
deficiency in the direct appropriation for general education
aid. Excess appropriations must be allocated proportionately
among aids or grants that have insufficient appropriations. The
commissioner of finance shall make the necessary transfers among
appropriations according to the determinations of the
commissioner. If the amount of the direct appropriation for the
aid or grant plus the amount transferred according to this
subdivision is insufficient, the commissioner shall prorate the
available amount among eligible districts. The state is not
obligated for any additional amounts.

(b) Transfers for aids paid under section 127A.45,
subdivisions 12, paragraph (a), 12a, paragraph (a), and 13,
shall be made during the fiscal year after the fiscal year of
the entitlement. Transfers for aids paid under section 127A.45,
subdivisions 11, 12, paragraph (b), and 12a, paragraph (b),
shall be made during the fiscal year of the appropriation.

Sec. 5.

Minnesota Statutes 2004, section 127A.45,
subdivision 12, is amended to read:

Subd. 12.

Payment percentage for certain aids.

(a) One
hundred percent of the aid for the current fiscal year must be
paid for the following aids: reimbursement for enrollment
options transportation, according to sections 124D.03,
subdivision 8, 124D.09, subdivision 22, and 124D.10; school
lunch aid, according to section 124D.111; hearing impaired
support services aid, according to section 124D.57; and Indian
postsecondary preparation grants according to section
deleted text begin 124D.80 deleted text end new text begin 124D.81 new text end .

(b) One hundred percent of the aid for the current fiscal
year, based on enrollment in the previous year, must be paid for
the first grade preparedness program according to section
124D.081.