Minnesota Legislature
HF 1793
3rd Engrossment - 83rd Legislature (2003 - 2004) Posted on 12/15/2009 12:00am
KEY: stricken = removed, old language.
underscored = added, new language.
1.1 A bill for an act 1.2 relating to education; providing for prekindergarten 1.3 through grade 12 education and early childhood and 1.4 family education including general education, special 1.5 programs, academic excellence, facilities, nutrition, 1.6 and accounting, other programs, libraries, early 1.7 childhood programs, prevention, self-sufficiency and 1.8 lifelong learning, state agencies, deficiencies, 1.9 technical and conforming amendments, and academic 1.10 standards; providing for higher education including 1.11 extending sunset of education telecommunications 1.12 council, requiring eligible institutions to provide 1.13 certain data to the Higher Education Services Office, 1.14 making changes relating to child care grants and the 1.15 Minnesota College Savings Plan, modifying certain 1.16 education benefits of public safety officers, making 1.17 changes to tuition reciprocity, and authorizing 1.18 planning for applied doctoral degrees; repealing 1.19 obsolete rules; providing for rulemaking; reducing 1.20 appropriations; appropriating money; amending 1.21 Minnesota Statutes 2002, sections 13.321, subdivision 1.22 1, by adding subdivisions; 119A.46, subdivisions 2, 3, 1.23 8; 120A.05, by adding a subdivision; 120B.23, as 1.24 amended; 120B.35, by adding a subdivision; 121A.22, 1.25 subdivision 2; 121A.34, by adding subdivisions; 1.26 121A.45, subdivision 3; 121A.48; 121A.75, by adding a 1.27 subdivision; 122A.06, subdivision 4; 122A.12, by 1.28 adding a subdivision; 122A.16; 122A.18, subdivision 1.29 2a, by adding a subdivision; 122A.20, subdivision 2; 1.30 123A.05, subdivision 2; 123A.442, subdivision 2; 1.31 123A.443, subdivision 4; 123A.55; 123B.09, subdivision 1.32 8; 123B.143, subdivision 1; 123B.195; 123B.36, 1.33 subdivision 1; 123B.49, subdivision 4; 123B.53, 1.34 subdivision 6; 123B.58, subdivision 2; 123B.71, 1.35 subdivision 9; 123B.75, by adding a subdivision; 1.36 123B.76, by adding a subdivision; 123B.82; 123B.92, 1.37 subdivision 5; 124D.15, subdivisions 1, 3, 5, 8, 10, 1.38 12, by adding a subdivision; 124D.16, subdivision 2; 1.39 124D.19, subdivision 11; 124D.20, by adding a 1.40 subdivision; 124D.59, as amended; 124D.61; 124D.68, 1.41 subdivisions 3, 9; 124D.69, subdivision 1; 125A.023, 1.42 subdivision 3; 125A.03; 125A.07; 125A.22; 125A.46; 1.43 125A.51; 125A.79, subdivisions 5, 7, by adding 1.44 subdivisions; 125B.15; 126C.10, subdivision 2; 1.45 126C.15, subdivision 2, by adding a subdivision; 1.46 126C.21, subdivision 4; 126C.48, subdivision 8; 2.1 127A.42, subdivisions 4, 6; 127A.45, subdivision 11; 2.2 127A.47, subdivision 3; 134.31, by adding a 2.3 subdivision; 134.50; 136A.08, by adding a subdivision; 2.4 136A.121, subdivision 2, by adding a subdivision; 2.5 136G.11, by adding a subdivision; 169.451; 171.04, 2.6 subdivision 1; 171.05, subdivisions 2, 2b, 3; 171.19; 2.7 260A.01; 260A.03; 260C.163, subdivision 11; 299A.45, 2.8 subdivision 4; 631.40, subdivision 4; Minnesota 2.9 Statutes 2003 Supplement, sections 13.46, subdivision 2.10 2; 16A.152, subdivision 2; 119A.46, subdivision 1; 2.11 120B.021, subdivisions 1, 3, by adding a subdivision; 2.12 120B.022, subdivision 1; 120B.024; 120B.36; 121A.64; 2.13 122A.09, subdivision 4; 123B.54; 123B.77, subdivision 2.14 4; 123B.92, subdivision 1; 124D.095, subdivisions 4, 2.15 7, 8; 124D.10, subdivisions 3, 4, 8; 124D.11, 2.16 subdivisions 1, 2, 9; 124D.20, subdivision 11; 2.17 124D.385, subdivision 2; 124D.42, subdivision 6; 2.18 124D.454, subdivision 2; 124D.531, subdivisions 1, 4; 2.19 124D.86, subdivisions 3, 4; 125A.023, subdivision 4; 2.20 125A.091, subdivision 5; 125A.75, subdivision 8; 2.21 125A.79, subdivision 1; 125B.21, subdivision 1; 2.22 126C.10, subdivisions 3, 31; 126C.15, subdivision 1; 2.23 126C.17, subdivision 9; 126C.40, subdivision 1; 2.24 126C.43, subdivisions 2, 3; 126C.44; 126C.457; 2.25 126C.63, subdivision 8; 127A.41, subdivision 9; 2.26 127A.42, subdivision 2; 127A.47, subdivisions 7, 8; 2.27 128C.05, subdivision 1a; 136A.121, subdivision 9; 2.28 136A.125, subdivision 2; 136G.11, subdivisions 1, 3; 2.29 136G.13, subdivision 1; 275.065, subdivision 1; 2.30 475.61, subdivision 4; 626.556, subdivision 2; Laws 2.31 2003, chapter 130, section 12; Laws 2003, First 2.32 Special Session chapter 9, article 1, section 53, 2.33 subdivisions 2, 3, 5, 6, 11, 12; Laws 2003, First 2.34 Special Session chapter 9, article 2, section 55, 2.35 subdivisions 2, 3, 4, 5, 7, 9, 12, 15, 16, 17, 19, 21, 2.36 as amended; Laws 2003, First Special Session chapter 2.37 9, article 3, section 19; Laws 2003, First Special 2.38 Session chapter 9, article 3, section 20, subdivisions 2.39 4, 5, 6, 7, 8, 9; Laws 2003, First Special Session 2.40 chapter 9, article 4, section 29; Laws 2003, First 2.41 Special Session chapter 9, article 4, section 31, 2.42 subdivisions 2, 3; Laws 2003, First Special Session 2.43 chapter 9, article 5, section 35, subdivisions 2, 3; 2.44 Laws 2003, First Special Session chapter 9, article 6, 2.45 section 4; Laws 2003, First Special Session chapter 9, 2.46 article 7, section 11, subdivisions 2, 3; Laws 2003, 2.47 First Special Session chapter 9, article 8, section 7, 2.48 subdivisions 2, 5; Laws 2003, First Special Session 2.49 chapter 9, article 9, section 9, subdivisions 2, 5; 2.50 Laws 2003, First Special Session chapter 9, article 2.51 10, section 10, subdivision 2; Laws 2003, First 2.52 Special Session chapter 9, article 10, section 11; 2.53 Laws 2003, First Special Session chapter 9, article 2.54 10, section 12; proposing coding for new law in 2.55 Minnesota Statutes, chapters 120A; 120B; 121A; 122A; 2.56 123B; 125B; 127A; 135A; 171; repealing Minnesota 2.57 Statutes 2002, sections 124D.15, subdivisions 2, 4, 6, 2.58 11, 13; 124D.16, subdivisions 1, 4; 124D.41; 124D.42, 2.59 subdivisions 1, 2, 4, 5, 7; 124D.43; 124D.91; 124D.92; 2.60 126C.23; 134.47, subdivision 3; Minnesota Statutes 2.61 2003 Supplement, sections 124D.15, subdivision 7; 2.62 124D.42, subdivision 3; 124D.86, subdivision 5; 2.63 136G.11, subdivision 2; Minnesota Rules, parts 2.64 4815.0100; 4815.0110; 4815.0120; 4815.0130; 4815.0140; 2.65 4815.0150; 4815.0160; 4830.8100; 4830.8110; 4830.8120; 2.66 4830.8130; 4830.8140; 4830.8150. 2.67 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 2.68 ARTICLE 1 3.1 GENERAL EDUCATION 3.2 Section 1. Minnesota Statutes 2002, section 120A.05, is 3.3 amended by adding a subdivision to read: 3.4 Subd. 18. [KINDERGARTEN.] "Kindergarten" means a program 3.5 designed for pupils five years of age on September 1 of the 3.6 calendar year in which the school year commences that prepares 3.7 pupils to enter first grade the following school year. A 3.8 program designed for pupils younger than five years of age on 3.9 September 1 of the calendar year in which the school year 3.10 commences that prepares pupils to enter kindergarten the 3.11 following school year is a prekindergarten program. 3.12 [EFFECTIVE DATE.] This section is effective the day 3.13 following final enactment. 3.14 Sec. 2. [120B.124] [BASIC SKILLS INTERVENTION.] 3.15 Districts and charter schools must provide or contract for 3.16 summer school classes for all district and charter school 3.17 students in grades 9 through 12 who have not received a passing 3.18 score on a basic skills test taken by the student as required 3.19 for high school graduation under sections 120B.02 and 120B.30. 3.20 These courses must provide additional instruction in the subject 3.21 areas where students demonstrate a lack of comprehension of 3.22 specific subject matter on the basic skills tests. 3.23 [EFFECTIVE DATE.] This section is effective the day 3.24 following final enactment and applies to summer sessions 3.25 starting after June 1, 2004. 3.26 Sec. 3. Minnesota Statutes 2002, section 121A.34, is 3.27 amended by adding a subdivision to read: 3.28 Subd. 5. [BELTS AND OTHER ACCESSORIES.] Notwithstanding 3.29 any rule of the commissioner of public safety, vests, sashes, 3.30 ponchos, and Sam Browne belts worn by school safety patrol 3.31 members may be fluorescent yellow, fluorescent yellow-green, or 3.32 blaze orange. 3.33 Sec. 4. Minnesota Statutes 2002, section 121A.34, is 3.34 amended by adding a subdivision to read: 3.35 Subd. 6. [SCHOOL SAFETY PATROL FLAGS.] Notwithstanding any 3.36 rule of the commissioner of public safety, school safety patrol 4.1 flags may be (1) blaze orange with a yellow octagon bearing the 4.2 word "Stop" in black letters, or (2) fluorescent yellow or 4.3 fluorescent yellow-green with an octagon of sharply contrasting 4.4 color bearing the word "Stop" in black letters. 4.5 Sec. 5. Minnesota Statutes 2002, section 123B.76, is 4.6 amended by adding a subdivision to read: 4.7 Subd. 3. [EXPENDITURES BY BUILDING.] (a) For the purposes 4.8 of this section, "building" means education site as defined in 4.9 section 123B.04, subdivision 1. 4.10 (b) Each district shall maintain separate accounts to 4.11 identify general fund expenditures, excluding capital 4.12 expenditures and pupil transportation, for each building. All 4.13 expenditures for regular instruction, secondary vocational 4.14 instruction, and school administration must be reported to the 4.15 department separately for each building. All expenditures for 4.16 special education instruction, instructional support services, 4.17 and pupil support services provided within a specific building 4.18 must be reported to the department separately for each 4.19 building. Salary expenditures reported by building must reflect 4.20 actual salaries for staff at the building and must not be based 4.21 on districtwide averages. All other general fund expenditures 4.22 may be reported on a districtwide basis. 4.23 (c) The department must annually report information showing 4.24 school district general fund expenditures per pupil by program 4.25 category for each building and estimated school district general 4.26 fund revenue generated by pupils attending each building on its 4.27 Web site. For purposes of this report: 4.28 (1) expenditures not required to be reported by building 4.29 shall be allocated among buildings on a uniform per pupil basis; 4.30 (2) basic skills revenue shall be allocated according to 4.31 section 126C.10, subdivision 4; 4.32 (3) secondary sparsity revenue and elementary sparsity 4.33 revenue shall be allocated according to section 126C.10, 4.34 subdivisions 7 and 8; 4.35 (4) other general education revenue shall be allocated on a 4.36 uniform per pupil unit basis; 5.1 (5) first grade preparedness aid shall be allocated 5.2 according to section 124D.081; 5.3 (6) state and federal special education aid and Title I aid 5.4 shall be allocated in proportion to district expenditures for 5.5 these programs by building; and 5.6 (7) other general fund revenues shall be allocated on a 5.7 uniform per pupil basis, except that the department may allocate 5.8 other revenues attributable to specific buildings directly to 5.9 those buildings. 5.10 [EFFECTIVE DATE.] This section is effective the day 5.11 following final enactment and applies to reports for fiscal year 5.12 2004 and later. 5.13 Sec. 6. Minnesota Statutes 2003 Supplement, section 5.14 123B.77, subdivision 4, is amended to read: 5.15 Subd. 4. [BUDGET APPROVAL.] Prior to July 1 of each year, 5.16 the board of each district must approve and adopt its revenue 5.17 and expenditure budgets for the next school year. The budget 5.18 document so adopted must be considered an 5.19 expenditure-authorizing or appropriations document. No funds 5.20 shall be expended by any board or district for any purpose in 5.21 any school year prior to the adoption of the budget document 5.22 which authorizes that expenditure, or prior to an amendment to 5.23 the budget document by the board to authorize the expenditure. 5.24 Expenditures of funds in violation of this subdivision shall be 5.25 considered unlawful expenditures. Prior to the appropriation of 5.26 revenue for the next school year in the initial budget, the 5.27 board shallcalculate the general education revenue, basic5.28skills revenue, and referendum revenue for that year that it5.29estimates will be generated by the pupils in attendance at each5.30site, and shallinform the principal or other responsible 5.31 administrative authority of each site ofthat estimate and5.32report this information tothe amount of general education and 5.33 referendum revenue that the Department of Education estimates 5.34 will be generated by the pupils in attendance at each site. For 5.35 purposes of this subdivision, a district may adjust the 5.36 department's estimates for school building openings, school 6.1 building closings, changes in attendance area boundaries, or 6.2 other changes in programs or student demographics not reflected 6.3 in the department's calculations. A district must report to the 6.4 department any adjustments it makes according to this 6.5 subdivision in the department's estimates of compensatory 6.6 revenue generated by the pupils in attendance at each site, and 6.7 the department must use the adjusted compensatory revenue 6.8 estimates in preparing the report required under section 6.9 123B.76, subdivision 3, paragraph (c). 6.10 [EFFECTIVE DATE.] This section is effective the day 6.11 following final enactment and applies to reports for fiscal year 6.12 2005 and later. 6.13 Sec. 7. Minnesota Statutes 2002, section 123B.82, is 6.14 amended to read: 6.15 123B.82 [REORGANIZATION OPERATING DEBT.] 6.16 The "reorganization operating debt" of a school district 6.17 means the net negative undesignated fund balance in all school 6.18 district funds, other thancapital expenditure,building 6.19 construction, debt redemption, and trust and agency, calculated 6.20 in accordance with the uniform financial accounting and 6.21 reporting standards for Minnesota school districts as of: 6.22 (1) June 30 of the fiscal year before the first year that a 6.23 district receives revenue according to section 123A.39, 6.24 subdivision 3; or 6.25 (2) June 30 of the fiscal year before the effective date of 6.26 reorganization according to section 123A.46 or 123A.48. 6.27 [EFFECTIVE DATE.] This section is effective the day 6.28 following final enactment. 6.29 Sec. 8. Minnesota Statutes 2003 Supplement, section 6.30 123B.92, subdivision 1, is amended to read: 6.31 Subdivision 1. [DEFINITIONS.] For purposes of this section 6.32 and section 125A.76, the terms defined in this subdivision have 6.33 the meanings given to them. 6.34 (a) "Actual expenditure per pupil transported in the 6.35 regular and excess transportation categories" means the quotient 6.36 obtained by dividing: 7.1 (1) the sum of: 7.2 (i) all expenditures for transportation in the regular 7.3 category, as defined in paragraph (b), clause (1), and the 7.4 excess category, as defined in paragraph (b), clause (2), plus 7.5 (ii) an amount equal to one year's depreciation on the 7.6 district's school bus fleet and mobile units computed on a 7.7 straight line basis at the rate of 15 percent per year for 7.8 districts operating a program under section 124D.128 for grades 7.9 1 to 12 for all students in the district and 12-1/2 percent per 7.10 year for other districts of the cost of the fleet, plus 7.11 (iii) an amount equal to one year's depreciation on the 7.12 district's type three school buses, as defined in section 7.13 169.01, subdivision 6, clause (5), which must be used a majority 7.14 of the time for pupil transportation purposes, computed on a 7.15 straight line basis at the rate of 20 percent per year of the 7.16 cost of the type three school buses by: 7.17 (2) the number of pupils eligible for transportation in the 7.18 regular category, as defined in paragraph (b), clause (1), and 7.19 the excess category, as defined in paragraph (b), clause (2). 7.20 (b) "Transportation category" means a category of 7.21 transportation service provided to pupils as follows: 7.22 (1) Regular transportation is: 7.23 (i) transportation to and from school during the regular 7.24 school year for resident elementary pupils residing one mile or 7.25 more from the public or nonpublic school they attend, and 7.26 resident secondary pupils residing two miles or more from the 7.27 public or nonpublic school they attend, excluding desegregation 7.28 transportation and noon kindergarten transportation; but with 7.29 respect to transportation of pupils to and from nonpublic 7.30 schools, only to the extent permitted by sections 123B.84 to 7.31 123B.87; 7.32 (ii) transportation of resident pupils to and from language 7.33 immersion programs; 7.34 (iii) transportation of a pupil who is a custodial parent 7.35 and that pupil's child between the pupil's home and the child 7.36 care provider and between the provider and the school, if the 8.1 home and provider are within the attendance area of the school; 8.2 (iv) transportation to and from or board and lodging in 8.3 another district, of resident pupils of a district without a 8.4 secondary school; and 8.5 (v) transportation to and from school during the regular 8.6 school year required under subdivision 3 for nonresident 8.7 elementary pupils when the distance from the attendance area 8.8 border to the public school is one mile or more, and for 8.9 nonresident secondary pupils when the distance from the 8.10 attendance area border to the public school is two miles or 8.11 more, excluding desegregation transportation and noon 8.12 kindergarten transportation. 8.13 For the purposes of this paragraph, a district may 8.14 designate a licensed day care facility, respite care facility, 8.15 the residence of a relative, or the residence of a person chosen 8.16 by the pupil's parent or guardian as the home of a pupil for 8.17 part or all of the day, if requested by the pupil's parent or 8.18 guardian, and if that facility or residence is within the 8.19 attendance area of the school the pupil attends. 8.20 (2) Excess transportation is: 8.21 (i) transportation to and from school during the regular 8.22 school year for resident secondary pupils residing at least one 8.23 mile but less than two miles from the public or nonpublic school 8.24 they attend, and transportation to and from school for resident 8.25 pupils residing less than one mile from school who are 8.26 transported because of extraordinary traffic, drug, or crime 8.27 hazards; and 8.28 (ii) transportation to and from school during the regular 8.29 school year required under subdivision 3 for nonresident 8.30 secondary pupils when the distance from the attendance area 8.31 border to the school is at least one mile but less than two 8.32 miles from the public school they attend, and for nonresident 8.33 pupils when the distance from the attendance area border to the 8.34 school is less than one mile from the school and who are 8.35 transported because of extraordinary traffic, drug, or crime 8.36 hazards. 9.1 (3) Desegregation transportation is transportation within 9.2 and outside of the district during the regular school year of 9.3 pupils to and from schools located outside their normal 9.4 attendance areas under a plan for desegregation mandated by the 9.5 commissioner or under court order. 9.6 (4) "Transportation services for pupils with disabilities" 9.7 is: 9.8 (i) transportation of pupils with disabilities who cannot 9.9 be transported on a regular school bus between home or a respite 9.10 care facility and school; 9.11 (ii) necessary transportation of pupils with disabilities 9.12 from home or from school to other buildings, including centers 9.13 such as developmental achievement centers, hospitals, and 9.14 treatment centers where special instruction or services required 9.15 by sections 125A.03 to 125A.24, 125A.26 to 125A.48, and 125A.65 9.16 are provided, within or outside the district where services are 9.17 provided; 9.18 (iii) necessary transportation for resident pupils with 9.19 disabilities required by sections 125A.12, and 125A.26 to 9.20 125A.48; 9.21 (iv) board and lodging for pupils with disabilities in a 9.22 district maintaining special classes; 9.23 (v) transportation from one educational facility to another 9.24 within the district for resident pupils enrolled on a 9.25 shared-time basis in educational programs, and necessary 9.26 transportation required by sections 125A.18, and 125A.26 to 9.27 125A.48, for resident pupils with disabilities who are provided 9.28 special instruction and services on a shared-time basis; 9.29 (vi) transportation for resident pupils with disabilities 9.30 to and from board and lodging facilities when the pupil is 9.31 boarded and lodged for educational purposes;and9.32 (vii) services described in clauses (i) to (vi), when 9.33 provided for pupils with disabilities in conjunction with a 9.34 summer instructional program that relates to the pupil's 9.35 individual education plan or in conjunction with a learning year 9.36 program established under section 124D.128; 10.1 (viii) for purposes of computing special education base 10.2 revenue under section 125A.76, subdivision 2, the additional 10.3 cost of transporting a homeless student from a temporary 10.4 nonshelter home in another district to the school of origin, or 10.5 a formerly homeless student from a permanent home in another 10.6 district to the school of origin but only through the end of the 10.7 academic year, must be included in the disabled transportation 10.8 category; and 10.9 (ix) for purposes of computing special education base 10.10 revenue under section 125A.76, subdivision 2, depreciation on 10.11 district-owned buses purchased after July 1, 2004, and used 10.12 primarily for transportation of pupils with disabilities, 10.13 calculated according to paragraph (a), clause (1), items (ii) 10.14 and (iii), must be included in the disabled transportation 10.15 category. Depreciation costs included in the disabled 10.16 transportation category must be excluded in calculating the 10.17 actual expenditure per pupil transported in the regular and 10.18 excess transportation categories according to paragraph (a). 10.19 (5) "Nonpublic nonregular transportation" is: 10.20 (i) transportation from one educational facility to another 10.21 within the district for resident pupils enrolled on a 10.22 shared-time basis in educational programs, excluding 10.23 transportation for nonpublic pupils with disabilities under 10.24 clause (4); 10.25 (ii) transportation within district boundaries between a 10.26 nonpublic school and a public school or a neutral site for 10.27 nonpublic school pupils who are provided pupil support services 10.28 pursuant to section 123B.44; and 10.29 (iii) late transportation home from school or between 10.30 schools within a district for nonpublic school pupils involved 10.31 in after-school activities. 10.32 (c) "Mobile unit" means a vehicle or trailer designed to 10.33 provide facilities for educational programs and services, 10.34 including diagnostic testing, guidance and counseling services, 10.35 and health services. A mobile unit located off nonpublic school 10.36 premises is a neutral site as defined in section 123B.41, 11.1 subdivision 13. 11.2 [EFFECTIVE DATE.] This section is effective July 1, 2004, 11.3 and applies for revenue for fiscal year 2005. 11.4 Sec. 9. Minnesota Statutes 2002, section 123B.92, 11.5 subdivision 5, is amended to read: 11.6 Subd. 5. [DISTRICT REPORTS.] (a) Each district must report 11.7 data to the department as required by the department to account 11.8 for transportation expenditures. 11.9 (b) Salaries and fringe benefits of district employees 11.10 whose primary duties are other than transportation, including 11.11 central office administrators and staff, building administrators 11.12 and staff, teachers, social workers, school nurses, and 11.13 instructional aides, must not be included in a district's 11.14 transportation expenditures, except that a district may include 11.15 salaries and benefits according to paragraph (c) for (1) an 11.16 employee designated as the district transportation director, (2) 11.17 an employee providing direct support to the transportation 11.18 director, or (3) an employee providing direct transportation 11.19 services such as a bus driver or bus aide. 11.20 (c) Salaries and fringe benefits of other district 11.21 employees who work part-time in transportation and part-time in 11.22 other areas must not be included in a district's transportation 11.23 expenditures unless the district maintains documentation of the 11.24 employee's time spent on pupil transportation matters in the 11.25 form and manner prescribed by the department. 11.26 (d) Pupil transportation expenditures, excluding 11.27 expenditures for capital outlay, leased buses, student board and 11.28 lodging, crossing guards, and aides on buses, must be allocated 11.29 among transportation categories based on a cost per mile, cost 11.30 per student, cost per hour, or cost per route, regardless of 11.31 whether the transportation services are provided on 11.32 district-owned or contractor-owned school buses. Expenditures 11.33 for school bus driver salaries and fringe benefits may either be 11.34 directly charged to the appropriate transportation category or 11.35 may be allocated among transportation categories on a cost per 11.36 mile or cost per student basis. Expenditures by private 12.1 contractors or individuals who provide transportation 12.2 exclusively in one transportation category must be charged 12.3 directly to the appropriate transportation category. 12.4 Transportation services provided by contractor-owned school bus 12.5 companies incorporated under different names but owned by the 12.6 same individual or group of individuals must be treated as the 12.7 same company for cost allocation purposes. 12.8 [EFFECTIVE DATE.] This section is effective for revenue for 12.9 fiscal year 2005. 12.10 Sec. 10. Minnesota Statutes 2003 Supplement, section 12.11 124D.454, subdivision 2, is amended to read: 12.12 Subd. 2. [DEFINITIONS.] For the purposes of this section, 12.13 the definitions in this subdivision apply. 12.14 (a) "Base year" means the second fiscal year preceding the 12.15 fiscal year for which aid will be paid. 12.16 (b) "Basic revenue" has the meaning given it in section 12.17 126C.10, subdivision 2. For the purposes of computing basic 12.18 revenue pursuant to this section, each child with a disability 12.19 shall be counted as prescribed in section 126C.05, subdivision 1. 12.20 (c) "Average daily membership" has the meaning given it in 12.21 section 126C.05. 12.22 (d) "Program growth factor" means 1.00 for fiscal year 1998 12.23 and later. 12.24 (e) "Aid percentage factor" means 100 percent for fiscal 12.25 year 2000 and later. 12.26 (f) "Essential personnel" means a licensed teacher, 12.27 licensed support services staff person, paraprofessional 12.28 providing direct services to students, or licensed personnel 12.29 under subdivision 12, paragraph (c). This definition is not 12.30 intended to change or modify the definition of essential 12.31 employee in chapter 179A. 12.32 [EFFECTIVE DATE.] This section is effective the day 12.33 following final enactment. 12.34 Sec. 11. Minnesota Statutes 2002, section 125A.51, is 12.35 amended to read: 12.36 125A.51 [PLACEMENT OF CHILDREN WITHOUT DISABILITIES; 13.1 EDUCATION AND TRANSPORTATION.] 13.2 The responsibility for providing instruction and 13.3 transportation for a pupil without a disability who has a 13.4 short-term or temporary physical or emotional illness or 13.5 disability, as determined by the standards of the commissioner, 13.6 and who is temporarily placed for care and treatment for that 13.7 illness or disability, must be determined as provided in this 13.8 section. 13.9 (a) The school district of residence of the pupil is the 13.10 district in which the pupil's parent or guardian resides. 13.11 (b) When parental rights have been terminated by court 13.12 order, the legal residence of a child placed in a residential or 13.13 foster facility for care and treatment is the district in which 13.14 the child resides. 13.15 (c) Before the placement of a pupil for care and treatment, 13.16 the district of residence must be notified and provided an 13.17 opportunity to participate in the placement decision. When an 13.18 immediate emergency placement is necessary and time does not 13.19 permit resident district participation in the placement 13.20 decision, the district in which the pupil is temporarily placed, 13.21 if different from the district of residence, must notify the 13.22 district of residence of the emergency placement within 15 days 13.23 of the placement. 13.24 (d) When a pupil without a disability is temporarily placed 13.25 for care and treatment in a day program and the pupil continues 13.26 to live within the district of residence during the care and 13.27 treatment, the district of residence must provide instruction 13.28 and necessary transportation to and from the treatment facility 13.29 for the pupil. Transportation shall only be provided by the 13.30 district during regular operating hours of the district. The 13.31 district may provide the instruction at a school within the 13.32 district of residence, at the pupil's residence, or in the case 13.33 of a placement outside of the resident district, in the district 13.34 in which the day treatment program is located by paying tuition 13.35 to that district. The district of placement may contract with a 13.36 facility to provide instruction by teachers licensed by the 14.1 state Board of Teaching. 14.2 (e) When a pupil without a disability is temporarily placed 14.3 in a residential program for care and treatment, the district in 14.4 which the pupil is placed must provide instruction for the pupil 14.5 and necessary transportation while the pupil is receiving 14.6 instruction, and in the case of a placement outside of the 14.7 district of residence, the nonresident district must bill the 14.8 district of residence for the actual cost of providing the 14.9 instruction for the regular school year and for summer school, 14.10 excluding transportation costs, unless the pupil is homeless and 14.11 placed in a public or private facility as defined in section 14.12 125A.515. Then the district that enrolls the pupil under 14.13 section 127A.47, subdivision 2, shall provide the 14.14 transportation, unless the district that enrolls the pupil and 14.15 the district in which the pupil is temporarily placed agree that 14.16 the district in which the pupil is temporarily placed shall 14.17 provide transportation. When a pupil without a disability is 14.18 temporarily placed in a residential program outside the district 14.19 of residence, the administrator of the court placing the pupil 14.20 must send timely written notice of the placement to the district 14.21 of residence. The district of placement may contract with a 14.22 residential facility to provide instruction by teachers licensed 14.23 by the state Board of Teaching. For purposes of this section, 14.24 the state correctional facilities operated on a fee-for-service 14.25 basis are considered to be residential programs for care and 14.26 treatment. 14.27 (f) The district of residence must include the pupil in its 14.28 residence count of pupil units and pay tuition as provided in 14.29 section 123A.488 to the district providing the instruction. 14.30 Transportation costs must be paid by the district providing the 14.31 transportation and the state must pay transportation aid to that 14.32 district. For purposes of computing state transportation aid, 14.33 pupils governed by this subdivision must be included in the 14.34 disabled transportation category. 14.35 [EFFECTIVE DATE.] This section is effective the day 14.36 following final enactment. 15.1 Sec. 12. Minnesota Statutes 2002, section 126C.10, 15.2 subdivision 2, is amended to read: 15.3 Subd. 2. [BASIC REVENUE.] The basic revenue for each 15.4 district equals the formula allowance times the adjusted 15.5 marginal cost pupil units for the school year. The formula 15.6 allowance for fiscal year 2001 is $3,964. The formula allowance 15.7 for fiscal year 2002 is $4,068. The formula allowance for 15.8 fiscal year 2003 andsubsequent yearsfiscal year 2004 is $4,601. 15.9 The formula allowance for fiscal year 2005 and later is $4,630. 15.10 Sec. 13. Minnesota Statutes 2003 Supplement, section 15.11 126C.10, subdivision 3, is amended to read: 15.12 Subd. 3. [COMPENSATORY EDUCATION REVENUE.] (a) The 15.13 compensatory education revenue for each building in the district 15.14 equals the formula allowance minus $415 times the compensation 15.15 revenue pupil units computed according to section 126C.05, 15.16 subdivision 3. Revenue shall be paid to the district and must 15.17 be allocated according to section 126C.15, subdivision 2. 15.18 (b) When the district contracting with an alternative 15.19 program under section 124D.69 changes prior to the start of a 15.20 school year, the compensatory revenue generated by pupils 15.21 attending the program shall be paid to the district contracting 15.22 with the alternative program for the current school year, and 15.23 shall not be paid to the district contracting with the 15.24 alternative program for the prior school year. 15.25 (c) When the fiscal agent district for an area learning 15.26 center changes prior to the start of a school year, the 15.27 compensatory revenue shall be paid to the fiscal agent district 15.28 for the current school year, and shall not be paid to the fiscal 15.29 agent district for the prior school year. 15.30 [EFFECTIVE DATE.] This section is effective for revenue for 15.31 fiscal year 2005. 15.32 Sec. 14. Minnesota Statutes 2003 Supplement, section 15.33 126C.10, subdivision 31, is amended to read: 15.34 Subd. 31. [TRANSITION REVENUE.] (a) A district's 15.35 transition allowance for fiscal years 2004 through 2008 equals 15.36 the greater of zero or the product of the ratio of the number of 16.1 adjusted marginal cost pupil units the district would have 16.2 counted for fiscal year 2004 under Minnesota Statutes 2002 to 16.3 the district's adjusted marginal cost pupil units for fiscal 16.4 year 2004, times the difference between: (1) the lesser of the 16.5 district's general education revenue per adjusted marginal cost 16.6 pupil unit for fiscal year 2003 or the amount of general 16.7 education revenue the district would have received per adjusted 16.8 marginal cost pupil unit for fiscal year 2004 according to 16.9 Minnesota Statutes 2002, and (2) the district's general 16.10 education revenue for fiscal year 2004 excluding transition 16.11 revenue divided by the number of adjusted marginal cost pupil 16.12 units the district would have counted for fiscal year 2004 under 16.13 Minnesota Statutes 2002. A district's transition allowance for 16.14 fiscal year 2009 and later is zero. 16.15 (b) A district's transition revenue for fiscal year 2004 16.16and laterequals the product of the district's transition 16.17 allowance times the district's adjusted marginal cost pupil 16.18 units. 16.19 (c) A district's transition revenue for fiscal year 2005 16.20 equals the sum of: 16.21 (1) the product of the district's transition allowance 16.22 times the district's adjusted marginal cost pupil units, plus 16.23 (2) the amount of referendum revenue under section 126C.17 16.24 and general education revenue, excluding transition revenue, for 16.25 fiscal year 2004 attributable to pupils four or five years of 16.26 age on September 1, 2003, enrolled in a prekindergarten program 16.27 implemented by the district before July 1, 2003, and reported as 16.28 kindergarten pupils under section 126C.05, subdivision 1, for 16.29 fiscal year 2004. 16.30 (d) A district's transition revenue for fiscal year 2006 16.31 and later equals the sum of: 16.32 (1) the product of the district's transition allowance 16.33 times the district's adjusted marginal cost pupil units, plus 16.34 (2) the amount of referendum revenue under section 126C.17 16.35 and general education revenue, excluding transition revenue, for 16.36 fiscal year 2004 attributable to pupils four or five years of 17.1 age on September 1, 2003, enrolled in a prekindergarten program 17.2 implemented by the district before July 1, 2003, and reported as 17.3 kindergarten pupils under section 126C.05, subdivision 1, for 17.4 fiscal year 2004, plus 17.5 (3) the amount of compensatory education revenue under 17.6 subdivision 3 for fiscal year 2005 attributable to pupils four 17.7 years of age on September 1, 2003, enrolled in a prekindergarten 17.8 program implemented by the district before July 1, 2003, and 17.9 reported as kindergarten pupils under section 126C.05, 17.10 subdivision 1, for fiscal year 2004. 17.11 [EFFECTIVE DATE.] This section is effective for revenue for 17.12 fiscal year 2005. 17.13 Sec. 15. Minnesota Statutes 2003 Supplement, section 17.14 126C.15, subdivision 1, is amended to read: 17.15 Subdivision 1. [USE OF THE REVENUE.] Except for revenue 17.16 allocated for prekindergarten programs under subdivision 2, 17.17 paragraph (c), the basic skills revenue under section 126C.10, 17.18 subdivision 4, must be reserved and used to meet the educational 17.19 needs of pupils who enroll under-prepared to learn and whose 17.20 progress toward meeting state or local content or performance 17.21 standards is below the level that is appropriate for learners of 17.22 their age. Any of the following may be provided to meet these 17.23 learners' needs: 17.24 (1) direct instructional services under the assurance of 17.25 mastery program according to section 124D.66; 17.26 (2) remedial instruction in reading, language arts, 17.27 mathematics, other content areas, or study skills to improve the 17.28 achievement level of these learners; 17.29 (3) additional teachers and teacher aides to provide more 17.30 individualized instruction to these learners through individual 17.31 tutoring, lower instructor-to-learner ratios, or team teaching; 17.32 (4) a longer school day or week during the regular school 17.33 year or through a summer program that may be offered directly by 17.34 the site or under a performance-based contract with a 17.35 community-based organization; 17.36 (5) comprehensive and ongoing staff development consistent 18.1 with district and site plans according to section 122A.60, for 18.2 teachers, teacher aides, principals, and other personnel to 18.3 improve their ability to identify the needs of these learners 18.4 and provide appropriate remediation, intervention, 18.5 accommodations, or modifications; 18.6 (6) instructional materials and technology appropriate for 18.7 meeting the individual needs of these learners; 18.8 (7) programs to reduce truancy, encourage completion of 18.9 high school, enhance self-concept, provide health services, 18.10 provide nutrition services, provide a safe and secure learning 18.11 environment, provide coordination for pupils receiving services 18.12 from other governmental agencies, provide psychological services 18.13 to determine the level of social, emotional, cognitive, and 18.14 intellectual development, and provide counseling services, 18.15 guidance services, and social work services; 18.16 (8) bilingual programs, bicultural programs, and programs 18.17 for learners of limited English proficiency; 18.18 (9) all day kindergarten; 18.19 (10) extended school day and extended school year programs; 18.20 and 18.21 (11) substantial parent involvement in developing and 18.22 implementing remedial education or intervention plans for a 18.23 learner, including learning contracts between the school, the 18.24 learner, and the parent that establish achievement goals and 18.25 responsibilities of the learner and the learner's parent or 18.26 guardian. 18.27 [EFFECTIVE DATE.] This section is effective July 1, 2004, 18.28 for revenue for fiscal year 2005. 18.29 Sec. 16. Minnesota Statutes 2002, section 126C.15, 18.30 subdivision 2, is amended to read: 18.31 Subd. 2. [BUILDING ALLOCATION.] (a) A district must 18.32 allocate its compensatory revenue to each school building in the 18.33 district where the children who have generated the revenue are 18.34 served. 18.35 (b) Notwithstanding paragraph (a), a district may allocate 18.36 up to five percent of the amount of compensatory revenue that 19.1 the districtreceived during the previous fiscal yearreceives 19.2 to school sites according to a plan adopted by the school board. 19.3 (c) Notwithstanding paragraph (a), a district may allocate 19.4 up to ten percent of the amount of compensatory revenue the 19.5 district receives to support prekindergarten programs under 19.6 subdivision 2a. 19.7 (d) For the purposes of this section and section 126C.05, 19.8 subdivision 3, "building" means education site as defined in 19.9 section 123B.04, subdivision 1. 19.10(d)(e) If the pupil is served at a site other than one 19.11 owned and operated by the district, the revenue shall be paid to 19.12 the district and used for services for pupils who generate the 19.13 revenue. 19.14 [EFFECTIVE DATE.] This section is effective July 1, 2004, 19.15 for revenue for fiscal year 2005. 19.16 Sec. 17. Minnesota Statutes 2002, section 126C.15, is 19.17 amended by adding a subdivision to read: 19.18 Subd. 2a. [PREKINDERGARTEN PROGRAMS.] Revenue allocated 19.19 under subdivision 2, paragraph (c), must be reserved and used 19.20 for programs and activities that prepare children ages 3-1/2 to 19.21 kindergarten entrance for kindergarten. Programs may serve 19.22 resident and nonresident children. Districts may contract with 19.23 private preschools and other providers of prekindergarten 19.24 programs. 19.25 [EFFECTIVE DATE.] This section is effective for revenue for 19.26 fiscal year 2005. 19.27 Sec. 18. Minnesota Statutes 2003 Supplement, section 19.28 126C.17, subdivision 9, is amended to read: 19.29 Subd. 9. [REFERENDUM REVENUE.] (a) The revenue authorized 19.30 by section 126C.10, subdivision 1, may be increased in the 19.31 amount approved by the voters of the district at a referendum 19.32 called for the purpose. The referendum may be called by the 19.33 board or shall be called by the board upon written petition of 19.34 qualified voters of the district. The referendum must be 19.35 conducted one or two calendar years before the increased levy 19.36 authority, if approved, first becomes payable. Only one 20.1 election to approve an increase may be held in a calendar year. 20.2 Unless the referendum is conducted by mail under paragraph (g), 20.3 the referendum must be held on the first Tuesday after the first 20.4 Monday in November. The ballot must state the maximum amount of 20.5 the increased revenue per resident marginal cost pupil unit, the20.6estimated referendum tax rate as a percentage of referendum20.7market value in the first year it is to be levied, and that the20.8revenue must be used to finance school operations. The ballot 20.9 may state a schedule, determined by the board, of increased 20.10 revenue per resident marginal cost pupil unit that differs from 20.11 year to year over the number of years for which the increased 20.12 revenue is authorized.If the ballot contains a schedule20.13showing different amounts, it must also indicate the estimated20.14referendum tax rate as a percent of referendum market value for20.15the amount specified for the first year and for the maximum20.16amount specified in the schedule.The ballot may state that 20.17 existing referendum levy authority is expiring. In this case, 20.18 the ballot may also compare the proposed levy authority to the 20.19 existing expiring levy authority, and express the proposed 20.20 increase as the amount, if any, over the expiring referendum 20.21 levy authority. The ballot must designate the specific number 20.22 of years, not to exceed ten, for which the referendum 20.23 authorization applies. The ballot, including a ballot on the 20.24 question to revoke or reduce the increased revenue amount under 20.25 paragraph (c), must abbreviate the term "per resident marginal 20.26 cost pupil unit" as "per pupil." The notice required under 20.27 section 275.60 may be modified to read, in cases of renewing 20.28 existing levies: 20.29 "BY VOTING "YES" ON THIS BALLOT QUESTION, YOU MAY BE VOTING 20.30 FOR A PROPERTY TAX INCREASE." 20.31 The ballot may contain a textual portion with the 20.32 information required in this subdivision and a question stating 20.33 substantially the following: 20.34 "Shall the increase in the revenue proposed by (petition 20.35 to) the board of ........., School District No. .., be approved?" 20.36 If approved, an amount equal to the approved revenue per 21.1 resident marginal cost pupil unit times the resident marginal 21.2 cost pupil units for the school year beginning in the year after 21.3 the levy is certified shall be authorized for certification for 21.4 the number of years approved, if applicable, or until revoked or 21.5 reduced by the voters of the district at a subsequent referendum. 21.6 (b) The board must prepare and deliver by first class mail 21.7 at least 15 days but no more than 30 days before the day of the 21.8 referendum to each taxpayer a notice of the referendum and the 21.9 proposed revenue increase. The board need not mail more than 21.10 one notice to any taxpayer. For the purpose of giving mailed 21.11 notice under this subdivision, owners must be those shown to be 21.12 owners on the records of the county auditor or, in any county 21.13 where tax statements are mailed by the county treasurer, on the 21.14 records of the county treasurer. Every property owner whose 21.15 name does not appear on the records of the county auditor or the 21.16 county treasurer is deemed to have waived this mailed notice 21.17 unless the owner has requested in writing that the county 21.18 auditor or county treasurer, as the case may be, include the 21.19 name on the records for this purpose. The notice must project 21.20 the anticipated amount of tax increase in annual dollarsand21.21annual percentagefor typical residential homesteads, 21.22 agricultural homesteads, apartments, and commercial-industrial 21.23 property within the school district. 21.24 The notice for a referendum may state that an existing 21.25 referendum levy is expiring and project the anticipated amount 21.26 of increase over the existing referendum levy in the first year, 21.27 if any, in annual dollarsand annual percentagefor typical 21.28 residential homesteads, agricultural homesteads, apartments, and 21.29 commercial-industrial property within the district. 21.30 The notice must include the following statement: "Passage 21.31 of this referendum will result in an increase in your property 21.32 taxes." However, in cases of renewing existing levies, the 21.33 notice may include the following statement: "Passage of this 21.34 referendum may result in an increase in your property taxes." 21.35 (c) A referendum on the question of revoking or reducing 21.36 the increased revenue amount authorized pursuant to paragraph 22.1 (a) may be called by the board and shall be called by the board 22.2 upon the written petition of qualified voters of the district. 22.3 A referendum to revoke or reduce the revenue amount must state 22.4 the amount per resident marginal cost pupil unit by which the 22.5 authority is to be reduced. Revenue authority approved by the 22.6 voters of the district pursuant to paragraph (a) must be 22.7 available to the school district at least once before it is 22.8 subject to a referendum on its revocation or reduction for 22.9 subsequent years. Only one revocation or reduction referendum 22.10 may be held to revoke or reduce referendum revenue for any 22.11 specific year and for years thereafter. 22.12 (d) A petition authorized by paragraph (a) or (c) is 22.13 effective if signed by a number of qualified voters in excess of 22.14 15 percent of the registered voters of the district on the day 22.15 the petition is filed with the board. A referendum invoked by 22.16 petition must be held on the date specified in paragraph (a). 22.17 (e) The approval of 50 percent plus one of those voting on 22.18 the question is required to pass a referendum authorized by this 22.19 subdivision. 22.20 (f) At least 15 days before the day of the referendum, the 22.21 district must submit a copy of the notice required under 22.22 paragraph (b) to the commissioner and to the county auditor of 22.23 each county in which the district is located. Within 15 days 22.24 after the results of the referendum have been certified by the 22.25 board, or in the case of a recount, the certification of the 22.26 results of the recount by the canvassing board, the district 22.27 must notify the commissioner of the results of the referendum. 22.28 [EFFECTIVE DATE.] This section is effective for referenda 22.29 conducted on or after July 1, 2004. 22.30 Sec. 19. Minnesota Statutes 2003 Supplement, section 22.31 126C.43, subdivision 2, is amended to read: 22.32 Subd. 2. [PAYMENT TO UNEMPLOYMENT INSURANCE PROGRAM TRUST 22.33 FUND BY STATE AND POLITICAL SUBDIVISIONS.] A district may 22.34 levy90 percent ofthe amountexceeding $10 times the district's22.35adjusted marginal cost pupil units for the fiscal year ending in22.36the year before the year the levy is certifiednecessary (i) to 23.1 pay the district's obligations under section 268.052, 23.2 subdivision 1, and (ii) to pay for job placement services 23.3 offered to employees who may become eligible for benefits 23.4 pursuant to section 268.085 for the fiscal year the levy is 23.5 certified. 23.6 [EFFECTIVE DATE.] This section is effective for taxes 23.7 payable in 2005. 23.8 Sec. 20. Minnesota Statutes 2003 Supplement, section 23.9 126C.43, subdivision 3, is amended to read: 23.10 Subd. 3. [TAX LEVY FOR JUDGMENT.] A district may levy9023.11percent ofthe amountexceeding $10 times the district's23.12adjusted marginal cost pupil units for the fiscal year ending in23.13the year before the year the levy is certifiednecessary to pay 23.14 judgments against the district under section 123B.25 that became 23.15 final after the date the district certified its proposed levy in 23.16 the previous year. With the approval of the commissioner, a 23.17 district may spread this levy over a period not to exceed three 23.18 years. Upon approval through the adoption of a resolution by 23.19 each of an intermediate district's member school district 23.20 boards, a member school district may include its proportionate 23.21 share of the costs of a judgment against an intermediate school 23.22 district that became final under section 123B.25 after the date 23.23 that the earliest member school district certified its proposed 23.24 levy in the previous year. With the approval of the 23.25 commissioner, an intermediate school district member school 23.26 district may spread this levy over a period not to exceed three 23.27 years. 23.28 [EFFECTIVE DATE.] This section is effective for taxes 23.29 payable in 2005. 23.30 Sec. 21. Minnesota Statutes 2003 Supplement, section 23.31 126C.44, is amended to read: 23.32 126C.44 [SAFE SCHOOLS LEVY.] 23.33 (a) Each district may make a levy on all taxable property 23.34 located within the district for the purposes specified in this 23.35 section. The maximum amount which may be levied for all costs 23.36 under this section shall be equal to$27$30 multiplied by the 24.1 district's adjusted marginal cost pupil units for the school 24.2 year. A school district that is a member of an intermediate 24.3 school district may include in its authority under this section 24.4 an additional amount equal to $2 times the district's adjusted 24.5 marginal cost pupil units for the school year for safe schools 24.6 costs of the intermediate school districts. 24.7 (b) The proceeds of the levy must be used for directly 24.8 funding the following purposes or for reimbursing the cities and 24.9 counties who contract with the district for the following 24.10 purposes: (1) to pay the costs incurred for the salaries, 24.11 benefits, and transportation costs of peace officers and 24.12 sheriffs for liaison in services in the district's schools; (2) 24.13 to pay the costs for a drug abuse prevention program as defined 24.14 in section 609.101, subdivision 3, paragraph (e), in the 24.15 elementary schools; (3) to pay the costs for a gang resistance 24.16 education training curriculum in the district's schools; (4) to 24.17 pay the costs for security in the district's schools and on 24.18 school property; or (5) to pay the costs for other crime 24.19 prevention, drug abuse, student and staff safety, and violence 24.20 prevention measures taken by the school district. The district 24.21 must initially attempt to contract for services to be provided 24.22 by peace officers or sheriffs with the police department of each 24.23 city or the sheriff's department of the county within the 24.24 district containing the school receiving the services. If a 24.25 local police department or a county sheriff's department does 24.26 not wish to provide the necessary services, the district may 24.27 contract for these services with any other police or sheriff's 24.28 department located entirely or partially within the school 24.29 district's boundaries. The levy authorized under this section 24.30 is not included in determining the school district's levy 24.31 limitations. 24.32 [EFFECTIVE DATE.] This section is effective for taxes 24.33 payable in 2005. 24.34 Sec. 22. Minnesota Statutes 2003 Supplement, section 24.35 127A.42, subdivision 2, is amended to read: 24.36 Subd. 2. [VIOLATIONS OF LAW.] (a) The commissioner may 25.1 reduce or withhold the district's state aid for any school year 25.2 whenever the board of the district authorizes or permits 25.3 violations of law within the district by: 25.4 (1) employing a teacher who does not hold a valid teaching 25.5 license or permit in a public school; 25.6 (2) noncompliance with a mandatory rule of general 25.7 application promulgated by the commissioner in accordance with 25.8 statute, unless special circumstances make enforcement 25.9 inequitable, impose an extraordinary hardship on the district, 25.10 or the rule is contrary to the district's best interests; 25.11 (3) the district's continued performance of a contract made 25.12 for the rental of rooms or buildings for school purposes or for 25.13 the rental of any facility owned or operated by or under the 25.14 direction of any private organization, if the contract has been 25.15 disapproved, the time for review of the determination of 25.16 disapproval has expired, and no proceeding for review is 25.17 pending; 25.18 (4) any practice which is a violation of sections 1 and 2 25.19 of article 13 of the Constitution of the state of Minnesota; 25.20 (5) failure to reasonably provide for a resident pupil's 25.21 school attendance under Minnesota Statutes; 25.22 (6) noncompliance with state laws prohibiting 25.23 discrimination because of race, color, creed, religion, national 25.24 origin, sex, age, marital status, status with regard to public 25.25 assistance or disability, as defined in sections 363A.08 to 25.26 363A.19 and 363A.28, subdivision 10; or 25.27 (7) using funds contrary to the statutory purpose of the 25.28 funds. 25.29 (b) If a district does not submit audited financial data or 25.30 an audited financial statement according to section 123B.77, 25.31 subdivision 3, the commissioner may withhold the district's 25.32 state aid for the school year until the audited financial data 25.33 or an audited financial statement have been submitted to the 25.34 commissioner. 25.35 (c) The reduction or withholding must be made in the amount 25.36 and upon the procedure provided in this section. 26.1 (d) For the purposes of this section, "reduce" means a 26.2 permanent reduction in a district or charter school's state aid 26.3 for a fiscal year, and "withhold" means a temporary withholding 26.4 of a portion of a district or charter school's state-aid 26.5 payments during the period in which a violation exists. Aids 26.6 withheld from a district or charter school must be paid to the 26.7 district or charter school within 30 days of the date the 26.8 violation of law has been corrected. 26.9 [EFFECTIVE DATE.] This section is effective the day 26.10 following final enactment and applies to audited financial data 26.11 and audited financial statements for fiscal year 2004 and later. 26.12 Sec. 23. Minnesota Statutes 2002, section 127A.42, 26.13 subdivision 4, is amended to read: 26.14 Subd. 4. [NOTICE TO BOARD.] (a) When it appears that a 26.15 violation is occurring in a district, the commissioner shall 26.16 notify the board of that district in writing. The notice must 26.17 specify the violations, set a reasonable time within which the 26.18 district must correct the specified violations, describe the 26.19 correction required, and advise that if the correction is not 26.20 made within the time allowed, special state aids to the district 26.21 will be reduced or withheld. The time allowed for correction 26.22 may be extended by the commissioner if there is reasonable 26.23 ground therefor. 26.24 (b) The timeline for submission of audited financial data 26.25 or an audited financial statement must allow the district or 26.26 charter school at least two months beyond the statutory due date 26.27 according to section 123B.77, subdivision 3, before any 26.28 withholding of aid will occur. 26.29 [EFFECTIVE DATE.] This section is effective July 1, 2004. 26.30 Sec. 24. Minnesota Statutes 2002, section 127A.42, 26.31 subdivision 6, is amended to read: 26.32 Subd. 6. [VIOLATION; AID REDUCTION OR WITHHOLDING.] (a) 26.33 The commissioner shall not reduce or withhold state aids payable 26.34 to the district if the violation specified is corrected within 26.35 the time permitted, or if the audited financial data or an 26.36 audited financial statement is submitted according to section 27.1 123B.77, subdivision 3, or if the commissioner on being notified 27.2 of the district board's decision to dispute decides the 27.3 violation does not exist, or if the commissioner decides after 27.4 hearing no violation specified in the commissioner's notice 27.5 existed at the time of the notice, or that the violations were 27.6 corrected within the time permitted. Otherwise state aids 27.7 payable to the district for the year in which the violation 27.8 occurred may be reduced or withheld as follows: The total 27.9 amount of state aids to which the district may be entitled shall 27.10 be reduced or withheld in the proportion that the period during 27.11 which a specified violation continued, computed from the last 27.12 day of the time permitted for correction, bears to the total 27.13 number of days school is held in the district during the year in 27.14 which a violation exists, multiplied by up to 60 percent of the 27.15 basic revenue, as defined in section 126C.10, subdivision 2, of 27.16 the district for that year. 27.17 (b) Notwithstanding paragraph (a), the commissioner must 27.18 not withhold more than one percent of a district's basic revenue 27.19 for failure to submit audited financial data or an audited 27.20 financial statement according to section 123B.77, subdivision 3. 27.21 [EFFECTIVE DATE.] This section is effective July 1, 2004. 27.22 Sec. 25. Minnesota Statutes 2002, section 127A.47, 27.23 subdivision 3, is amended to read: 27.24 Subd. 3. [REVENUE FOR CHILDREN OF DIVORCED OR LEGALLY 27.25 SEPARATED PARENTS OR PARENTS RESIDING SEPARATELY.] (a) In those 27.26 instances when the divorced or legally separated parents or 27.27 parents residing separately share joint physical custody of the 27.28 child and the divorced or legally separated parents or parents 27.29 residing separately reside in different school districts, for 27.30 all school purposes, unless otherwise specifically provided by 27.31 law, the child must be considered a resident of the school 27.32 district, as indicated by the child's parents. 27.33 (b) When the child of divorced or legally separated parents 27.34 or parents residing separately under paragraph (a) resides with 27.35 each parent on alternate weeks, the parents shall be responsible 27.36 for the transportation of the child to the border of the 28.1 resident school district during those weeks when the child 28.2 resides in the nonresident school district. 28.3 [EFFECTIVE DATE.] This section is effective July 1, 2004. 28.4 Sec. 26. [127A.52] [CROSS-SUBSIDY REPORTS.] 28.5 (a) By January 31 each year, the commissioner must estimate 28.6 how much each district cross-subsidized the cost of special 28.7 education with general education revenue during the fiscal year 28.8 ending on June 30 of the previous year. 28.9 (b) By January 31 each year, the commissioner must estimate 28.10 how much each district cross-subsidized the cost of basic skills 28.11 programs according to section 126C.15, subdivision 1, with 28.12 revenue other than basic skills revenue according to section 28.13 126C.10, subdivision 4, during the fiscal year ending on June 30 28.14 of the previous year. 28.15 (c) The commissioner must make the cross-subsidy estimates 28.16 available to all districts and the public by posting the 28.17 cross-subsidy reports on the department's Web site. 28.18 [EFFECTIVE DATE.] This section is effective July 1, 2004. 28.19 Sec. 27. Minnesota Statutes 2002, section 169.451, is 28.20 amended to read: 28.21 169.451 [INSPECTING SCHOOL AND HEAD START BUSES; RULES; 28.22 MISDEMEANOR.] 28.23 Subdivision 1. [ANNUAL REQUIREMENT.]The Minnesota State28.24Patrol shall inspectEvery school bus and every Head Start 28.25 bus must be inspected annually to ascertain whether its 28.26 construction, design, equipment, and color comply with all 28.27 provisions of law. 28.28 Subd. 1a. [INSPECTOR CERTIFICATION; SUSPENSION AND 28.29 REVOCATION; HEARING.] (a) An inspection required by this section 28.30 may be performed only by: 28.31 (1) an employee of the Department of Public Safety or 28.32 Transportation who has been certified by the commissioner after 28.33 having received training provided by the State Patrol; or 28.34 (2) another person who has been certified by the 28.35 commissioner after having received training provided by the 28.36 State Patrol or other training approved by the commissioner. 29.1 (b) A person who is not an employee of the Department of 29.2 Public Safety or Transportation may be certified by the 29.3 commissioner if the person is: 29.4 (1) an owner, or employee of the owner, of one or more 29.5 school buses, Head Start buses, or both; 29.6 (2) a dealer licensed under section 168.27 and engaged in 29.7 the business of buying and selling school buses, Head Start 29.8 buses, or both, or an employee of the dealer; or 29.9 (3) engaged in the business of repairing and servicing 29.10 school buses, Head Start buses, or both. 29.11 (c) Certification of persons described in paragraph (b) is 29.12 effective for two years from the date of certification. The 29.13 commissioner may require biennial retraining of persons holding 29.14 a certificate under paragraph (b) as a condition of renewal of 29.15 the certificate. The commissioner may charge a fee of not more 29.16 than $10 for each certificate issued and renewed. A certified 29.17 person described in paragraph (b) may charge a reasonable fee 29.18 for each inspection of a vehicle not owned by the person or the 29.19 person's employer. 29.20 (d) The commissioner may classify types of vehicles for 29.21 inspection purposes and may issue separate classes of inspector 29.22 certificates for each class. The commissioner shall issue 29.23 separate categories of inspector certificates based on the 29.24 following classifications: 29.25 (1) a class of certificate that authorizes the certificate 29.26 holder to inspect school buses, Head Start buses, or both, 29.27 without regard to ownership or lease; and 29.28 (2) a class of certificate that authorizes the certificate 29.29 holder to inspect only school buses, Head Start buses, or both, 29.30 that the certificate holder owns or leases. 29.31 The commissioner shall issue a certificate described in clause 29.32 (1) only to a person described in paragraph (b), clause (2) or 29.33 (3). 29.34 (e) The commissioner, after notice and an opportunity for a 29.35 hearing, may suspend a certificate issued under paragraph (b) 29.36 for failure to meet annual certification requirements prescribed 30.1 by the commissioner or failure to inspect school buses, Head 30.2 Start buses, or both, in accordance with inspection procedures 30.3 established by the State Patrol. The commissioner shall revoke 30.4 a certificate issued under paragraph (b) if the commissioner 30.5 determines after notice and an opportunity for a hearing that 30.6 the certified person issued an inspection decal for a school bus 30.7 or Head Start bus when the person knew or reasonably should have 30.8 known that the vehicle was in such a state of repair that it 30.9 would have been declared out of service if inspected by an 30.10 employee of the State Patrol. Suspension and revocation of 30.11 certificates under this subdivision are not subject to sections 30.12 14.57 to 14.69. 30.13 Subd. 1b. [INSPECTION REPORT.] (a) A person performing an 30.14 inspection under this section shall issue an inspection report 30.15 to the owner of the school bus or Head Start bus inspected. The 30.16 report must include: 30.17 (1) the full name of the person performing the inspection 30.18 and the person's inspector certification number; 30.19 (2) the name of the owner of the vehicle; 30.20 (3) the vehicle identification number and, if applicable, 30.21 the license plate number of the vehicle; 30.22 (4) the date and location of the inspection; 30.23 (5) the vehicle components inspected and a description of 30.24 the findings of the inspection; and 30.25 (6) the inspector's certification that the inspection was 30.26 complete, accurate, and in compliance with the requirements of 30.27 this section. 30.28 (b) The owner must retain a copy of the inspection report 30.29 for at least 14 months at a location in the state where the 30.30 vehicle is domiciled or maintained. The inspector must maintain 30.31 a copy of the inspection report for a period of 14 months 30.32 following the inspection in a location in the state where the 30.33 inspector conducts business. During this period the report must 30.34 be available for inspection by an authorized federal, state, or 30.35 local official. 30.36 (c) The commissioner shall prescribe the form of the 31.1 inspection report and revise it as necessary to comply with 31.2 state and federal law and regulations. The adoption of the 31.3 report form is not subject to the Administrative Procedure Act. 31.4 Subd. 2. [INSPECTION CERTIFICATE.] No person shall drive, 31.5 or no owner shall knowingly permit or cause to be driven, any 31.6 school bus or Head Start bus unless there is displayed thereon a 31.7 certificate issued by the commissioner of public safety stating 31.8 that on a certain date, which shall be within 13 months of the 31.9 date of operation,a member of the Minnesota State Patrol31.10inspectedthe bus was inspected under subdivision 1a and found 31.11 that on the date of inspection the bus complied with the 31.12 applicable provisions of state law relating to construction, 31.13 design, equipment, and color. 31.14 Subd. 3. [RULES OF COMMISSIONER.] (a) The commissioner of 31.15 public safety shall provide by rule for the issuance and display 31.16 of distinctive inspection certificates. 31.17 (b) The commissioner of public safety shall provide by rule 31.18 a point system for evaluating the effect on safety operation of 31.19 any variance from law detected during inspections conducted 31.20 pursuant tosubdivisionsubdivisions 1, 1a, and 1b. 31.21 Subd. 4. [VIOLATION; PENALTY.] The State Patrol shall 31.22 enforce subdivision 2. A violation of subdivision 2 is a 31.23 misdemeanor. 31.24 Subd. 5. [RANDOM SPOT INSPECTION.]In addition to the31.25annual inspection,The Minnesota State Patrol has authority to 31.26 conduct random, unannounced spot inspections of any school bus 31.27 or Head Start bus being operated within the state to ascertain 31.28 whether it is in compliance with provisions of law, including 31.29 the Minnesota school bus equipment standards in sections 31.30 169.4501 to 169.4504, subject to the procedures approved by the 31.31 commissioner. 31.32 Sec. 28. Minnesota Statutes 2003 Supplement, section 31.33 275.065, subdivision 1, is amended to read: 31.34 Subdivision 1. [PROPOSED LEVY.] (a) Notwithstanding any 31.35 law or charter to the contrary, on or before September 15, each 31.36 taxing authority, other than a school district, shall adopt a 32.1 proposed budget and shall certify to the county auditor the 32.2 proposed or, in the case of a town, the final property tax levy 32.3 for taxes payable in the following year. 32.4 (b) On or before September 30, each school district shall 32.5 certify to the county auditor the proposed property tax levy for 32.6 taxes payable in the following year. The school district shall 32.7 certify the proposed levy as: 32.8 (1)the state determined school levy amount as prescribed32.9under section 126C.13, subdivision 2;a specific dollar amount 32.10 by school district fund, broken down between voter-approved and 32.11 non-voter-approved levies and between referendum market value 32.12 and tax capacity levies; or 32.13 (2)voter approved referendum and debt levies; and32.14(3) the sum of the remaining school levies, orthe maximum 32.15 levy limitation certified by the commissioner of education 32.16 according to section 126C.48, subdivision 1, less the amounts32.17levied under clauses (1) and (2). 32.18 (c) If the board of estimate and taxation or any similar 32.19 board that establishes maximum tax levies for taxing 32.20 jurisdictions within a first class city certifies the maximum 32.21 property tax levies for funds under its jurisdiction by charter 32.22 to the county auditor by September 15, the city shall be deemed 32.23 to have certified its levies for those taxing jurisdictions. 32.24 (d) For purposes of this section, "taxing authority" 32.25 includes all home rule and statutory cities, towns, counties, 32.26 school districts, and special taxing districts as defined in 32.27 section 275.066. Intermediate school districts that levy a tax 32.28 under chapter 124 or 136D, joint powers boards established under 32.29 sections 123A.44 to 123A.446, and Common School Districts No. 32.30 323, Franconia, and No. 815, Prinsburg, are also special taxing 32.31 districts for purposes of this section. 32.32 [EFFECTIVE DATE.] This section is effective July 1, 2004. 32.33 Sec. 29. Laws 2003, First Special Session chapter 9, 32.34 article 1, section 53, subdivision 2, is amended to read: 32.35 Subd. 2. [GENERAL EDUCATION AID.] For general education 32.36 aid under Minnesota Statutes, section 126C.13, subdivision 4: 33.1$4,764,384,000$4,726,466,000 ..... 2004 33.2$5,090,303,000$5,039,797,000 33.3 ..... 2005 33.4 The 2004 appropriation includes$857,432,000$860,552,000 33.5 for 2003 and$3,906,952,000$3,865,914,000 for 2004. 33.6 The 2005 appropriation includes 33.7$1,009,856,000$1,009,822,000 for 2004 33.8 and$4,080,447,000$4,029,975,000 for 2005. 33.9 [EFFECTIVE DATE.] This section is effective the day 33.10 following final enactment. 33.11 Sec. 30. [KINDERGARTEN REPORTING.] 33.12 Notwithstanding Minnesota Statutes, sections 120A.05, 33.13 subdivision 18; 120A.20, subdivision 1; and 124D.02, subdivision 33.14 1, pupils four or five years of age on September 1 of the 33.15 calendar year in which the school year commences and enrolled in 33.16 a prekindergarten program implemented by the district before 33.17 July 1, 2003, may be reported as kindergarten pupils under 33.18 Minnesota Statutes, section 126C.05, subdivision 1, for fiscal 33.19 years 2004 and earlier. 33.20 [EFFECTIVE DATE.] This section is effective the day 33.21 following final enactment and applies to fiscal years 2004 and 33.22 earlier. 33.23 Sec. 31. [TRIAL TRANSPORTATION FEE; EDEN PRAIRIE SCHOOL 33.24 DISTRICT.] 33.25 (a) Notwithstanding Minnesota Statutes, section 123B.37, 33.26 subdivision 1, clause (10), for fiscal years 2005, 2006, and 33.27 2007 only, the school board of Independent School District No. 33.28 272, Eden Prairie, may require payment of fees for 33.29 transportation to and from school of any pupil transported, and 33.30 for all other transportation services not required by law, 33.31 subject to paragraphs (b) and (c). 33.32 (b) If the board charges fees for transportation of pupils 33.33 under this section, it must establish guidelines to ensure that 33.34 no pupil is denied transportation solely because of inability to 33.35 pay. Any transportation fees required must be applied equally 33.36 to public and nonpublic students transported within the district 34.1 and expended only for transportation services. The board may 34.2 require fees for students transported to charter schools or to 34.3 alternative attendance programs. 34.4 (c) The school board's total transportation fees for any 34.5 school year under this section may exceed the prior year's total 34.6 transportation fees only for payment of increased costs in 34.7 student transportation services or for expanding student 34.8 transportation services. 34.9 (d) This section expires June 30, 2007. 34.10 Sec. 32. [COMPENSATORY REVENUE ALLOCATION; TEST SCORE 34.11 PILOT PROGRAM.] 34.12 Subdivision 1. [PILOT PROGRAM CREATED.] Notwithstanding 34.13 Minnesota Statutes, section 126C.15, a three-year pilot program 34.14 is created to allow Independent School District No. 11, Anoka, 34.15 to allocate compensatory revenue received under Minnesota 34.16 Statutes, section 126C.10, subdivision 3, among its school 34.17 buildings according to each building's test scores and other 34.18 adequate yearly progress indicators for fiscal years 2005, 2006, 34.19 and 2007. 34.20 Subd. 2. [NOTIFICATION PROCEDURE.] In order to allocate 34.21 compensatory revenue to its school sites based on student 34.22 performance, Independent School District No. 11, Anoka, must 34.23 submit its plan to the commissioner of education by June 1, 34.24 2004. The plan must include a written resolution approved by 34.25 the school board that: (1) identifies the test results and 34.26 other indicators that will be used to assess student 34.27 performance; (2) describes the method for distribution of 34.28 compensatory revenue to the school sites; and (3) summarizes the 34.29 evaluation procedure the district will use to determine if the 34.30 redistribution of compensatory revenue improves overall student 34.31 performance and other adequate yearly progress indicators. 34.32 Subd. 3. [REPORT.] Independent School District No. 11, 34.33 Anoka, must submit a report by February 15 of each year, to the 34.34 education committees of the legislature and the commissioner of 34.35 education evaluating the effectiveness of the pilot program. 34.36 [EFFECTIVE DATE.] This section is effective the day 35.1 following final enactment. 35.2 Sec. 33. [SCHOOL BUS LEVY; CARPENTER SCHOOL BUSES.] 35.3 For taxes payable in 2005 through 2009, a school district 35.4 may levy an amount, not to exceed in the aggregate, $30,000 35.5 times the number of Carpenter school buses in its fleet that 35.6 have been determined to have potentially defective welds and are 35.7 subject to limitations imposed by the Minnesota Department of 35.8 Public Safety. 35.9 [EFFECTIVE DATE.] This section is effective for taxes 35.10 payable in 2005. 35.11 Sec. 34. [REPEALER.] 35.12 Minnesota Statutes 2002, section 126C.23, is repealed. 35.13 ARTICLE 2 35.14 ACADEMIC EXCELLENCE 35.15 Section 1. Minnesota Statutes 2002, section 13.321, 35.16 subdivision 1, is amended to read: 35.17 Subdivision 1. [SCOPE.] The sections referred to in 35.18 subdivisions 2 to912 are codified outside this chapter. Those 35.19 sections classify prekindergarten to grade 12 educational data 35.20 as other than public, place restrictions on access to government 35.21 data, or involve data sharing. 35.22 [EFFECTIVE DATE.] This section is effective the day 35.23 following final enactment. 35.24 Sec. 2. Minnesota Statutes 2002, section 13.321, is 35.25 amended by adding a subdivision to read: 35.26 Subd. 10. [TEACHER DATA FROM VALUE-ADDED ASSESSMENT 35.27 MODEL.] Data on individual teachers generated from a value-added 35.28 assessment model are governed under section 120B.362. 35.29 [EFFECTIVE DATE.] This section is effective the day 35.30 following final enactment. 35.31 Sec. 3. Minnesota Statutes 2002, section 13.321, is 35.32 amended by adding a subdivision to read: 35.33 Subd. 11. [SCHOOL ACCOUNTABILITY.] Data involving school 35.34 performance report cards and data involving adequate yearly 35.35 progress determinations are governed by section 120B.36. 35.36 [EFFECTIVE DATE.] This section is effective the day 36.1 following final enactment. 36.2 Sec. 4. Minnesota Statutes 2002, section 13.321, is 36.3 amended by adding a subdivision to read: 36.4 Subd. 12. [STUDENT TRUANCY AND DRIVING.] Data on student 36.5 attendance and driving are governed under section 171.056. 36.6 [EFFECTIVE DATE.] This section is effective September 1, 36.7 2004. 36.8 Sec. 5. [120A.23] [STUDENTS MUST ATTEND SCHOOL TO OBTAIN, 36.9 KEEP A DRIVER'S LICENSE OR PERMIT.] 36.10 (a) A board, by majority vote, may waive the requirement 36.11 under section 171.056 that its students must attend school to 36.12 obtain or keep their driver's licenses or permits. The board 36.13 must formally waive the requirement by September 30 of the first 36.14 school year in which the waiver applies. If a board wants to 36.15 rescind its waiver and require students to comply with section 36.16 171.056 in a subsequent school year, the board must vote to 36.17 rescind the waiver by September 30 of the first school year in 36.18 which the waiver no longer applies. 36.19 (b) For the purposes of this section, "board" means a 36.20 district school board, a board of a state-approved alternative 36.21 program, or a charter school board of directors. 36.22 Sec. 6. Minnesota Statutes 2003 Supplement, section 36.23 120B.021, subdivision 1, is amended to read: 36.24 Subdivision 1. [REQUIRED ACADEMIC STANDARDS.] The 36.25 following subject areas are required for statewide 36.26 accountability: 36.27 (1) language arts; 36.28 (2) mathematics; 36.29 (3) science; 36.30 (4) social studies, including history, geography, 36.31 economics, and government and citizenship;and36.32 (5) health and physical education, for which locally 36.33 developed academic standards apply; and 36.34 (6) the arts, for which statewide or locally developed 36.35 academic standards apply, as determined by the school district. 36.36 Public elementary and middle schools must offer at least three 37.1 and require at least two of the following four arts areas: 37.2 dance; music; theater; and visual arts. Public high schools 37.3 must offer at least three and require at least one of the 37.4 following five arts areas: media arts; dance; music; theater; 37.5 and visual arts. 37.6 The commissioner must submit proposed standards in science 37.7 and social studies to the legislature by February 1, 2004. 37.8 For purposes of applicable federal law, the academic standards 37.9 for language arts, mathematics, and science apply to all public 37.10 school students, except the very few students with extreme 37.11 cognitive or physical impairments for whom an individualized 37.12 education plan team has determined that the required academic 37.13 standards are inappropriate. An individualized education plan 37.14 team that makes this determination must establish alternative 37.15 standards. 37.16 A school district, no later than the 2007-2008 school year, 37.17 must adopt graduation requirements that meet or exceed state 37.18 graduation requirements established in law or rule. A school 37.19 district that incorporates these state graduation requirements 37.20 before the 2007-2008 school year must provide students who enter 37.21 the 9th grade in or before the 2003-2004 school year the 37.22 opportunity to earn a diploma based on existing locally 37.23 established graduation requirements in effect when the students 37.24 entered the 9th grade. District efforts to develop, implement, 37.25 or improve instruction or curriculum as a result of the 37.26 provisions of this section must be consistent with sections 37.27 120B.10, 120B.11, and 120B.20. 37.28 [EFFECTIVE DATE.] This section is effective for the 37.29 2005-2006 school year and later. 37.30 Sec. 7. Minnesota Statutes 2003 Supplement, section 37.31 120B.022, subdivision 1, is amended to read: 37.32 Subdivision 1. [ELECTIVE STANDARDS.] A district must 37.33 establish its own standards in the following subject areas: 37.34 (1)health and physical education;37.35(2)vocational and technical education; and 37.36(3)(2) world languages. 38.1 A school district must offer courses in all elective 38.2 subject areas. 38.3 [EFFECTIVE DATE.] This section is effective the day 38.4 following final enactment. 38.5 Sec. 8. Minnesota Statutes 2003 Supplement, section 38.6 120B.024, is amended to read: 38.7 120B.024 [GRADUATION REQUIREMENTS; COURSE CREDITS.] 38.8 Subdivision 1. [REQUIRED NUMBER OF COURSE CREDITS.] 38.9 Students beginning 9th grade in the 2004-2005 school year and 38.10 later must successfully complete the following high school level 38.11 course credits for graduation: 38.12 (1) four credits of language arts; 38.13 (2) three credits of mathematics, encompassing at least 38.14 algebra, geometry, statistics, and probability sufficient to 38.15 satisfy the grades 9, 10, and 11 academicstandardstandards; 38.16 (3) three credits of science, including at least one credit 38.17 in biology; 38.18 (4) three and one-half credits of social studies,including38.19 encompassing at leastone credit ofUnited States history,one38.20credit ofgeography,0.5 credits ofgovernment and citizenship, 38.210.5 credits ofworld history, and0.5 credits ofeconomics or 38.22 three credits of social studies encompassing at least United 38.23 States history, geography, government and citizenship, and world 38.24 history, and one-half credit of economics taught in a school's 38.25 social studies or business department;and38.26 (5) one credit in the arts; and 38.27 (6) a minimum ofeightseven elective course credits,38.28including at least one credit in the arts. 38.29 A course credit is equivalent to astudent's successful38.30completion ofstudent successfully completing an academic year 38.31 of study or astudent's mastery ofstudent mastering the 38.32 applicable subject matter, as determined by the local school 38.33 district. 38.34 Subd. 2. [RIGOROUS COURSE OF STUDY; WAIVER.] (a) Upon 38.35 receiving a student's application approved by the student's 38.36 parent or guardian, and with the recommendation of the student's 39.1 teacher, a school district, area learning center, or charter 39.2 school must declare that a student has completed a content 39.3 standard if the local school board, the school board of the 39.4 school district in which the area learning center is located, or 39.5 charter school board of directors determines that: 39.6 (1) the student is participating in a course of study 39.7 including an advanced placement or international baccalaureate 39.8 course or a learning opportunity outside the curriculum of the 39.9 district, area learning center, or charter school that is 39.10 equally or more rigorous than the academic standard required by 39.11 the district, area learning center, charter school, or the state 39.12 required academic standards; and 39.13 (2) completing the grade-level benchmarks of the required 39.14 academic standards to be waived would preclude the student from 39.15 participating in the rigorous course of study or learning 39.16 opportunity. 39.17 (b) A student who satisfactorily completes a postsecondary 39.18 enrollment options course or program under section 124D.09, that 39.19 has been approved under paragraph (c), is not required to 39.20 complete other requirements of the required academic standards 39.21 corresponding to that specific rigorous course of study. 39.22 (c) By August 15, 2004, and each year thereafter, the Board 39.23 of Regents of the University of Minnesota, the Board of Trustees 39.24 of the Minnesota State Colleges and Universities, and the 39.25 governing boards of Minnesota private colleges shall determine 39.26 the courses offered at each postsecondary institution under the 39.27 postsecondary enrollment options program that meet the 39.28 requirements of paragraph (a) and shall notify the commissioner 39.29 of those courses offered that meet the requirements. The 39.30 commissioner shall make available a listing of the postsecondary 39.31 enrollment options courses offered at postsecondary institutions 39.32 meeting the requirements of this section. 39.33 (d) Notwithstanding paragraph (a) or (b), a student who 39.34 entered ninth grade in the 2003-2004 school year or an earlier 39.35 school year and satisfactorily completes an advanced placement 39.36 or international baccalaureate course, or a postsecondary 40.1 enrollment options course under section 124D.09, satisfies the 40.2 requirements of the required academic standards corresponding to 40.3 that specific rigorous course of study. 40.4 Sec. 9. [120B.122] [READING RECORD.] 40.5 A school must include a reading record in the permanent 40.6 academic record of each kindergarten through grade 3 student. 40.7 The reading record must include a detailed screening that 40.8 identifies at least the reading strengths and weaknesses of the 40.9 student and progress in phonological awareness and other early 40.10 reading indicators. A school must record a student's reading 40.11 progress in the student's permanent academic record each year. 40.12 The reading record must also be included in the student's 40.13 permanent academic record that follows the student if the 40.14 student transfers to a new school or district. The 40.15 commissioner, with input from school districts, must develop a 40.16 sample form and content of the reading record. 40.17 Sec. 10. [120B.123] [STUDENT ACADEMIC PROGRESS.] 40.18 Subdivision 1. [STUDENT RETENTION.] (a) A public school or 40.19 charter school enrolling students in any grade kindergarten 40.20 through grade 6 must consider retaining a student without 40.21 promotion to the next grade level when the student in the 40.22 current year: 40.23 (1) was enrolled in school for at least 120 days and was 40.24 absent more than 20 percent of the class time during those days; 40.25 (2) achieved below grade level test scores on highly 40.26 reliable statewide or districtwide assessments; and 40.27 (3) based on the school's determination, did not master the 40.28 academic skills needed to succeed in the next grade. 40.29 The school must provide differentiated instruction whether or 40.30 not the student is retained in that same grade or promoted to 40.31 the next grade level. 40.32 (b) "Differentiated instruction" means an instructional 40.33 framework that allows classroom teachers to blend whole-class, 40.34 group, and individual instruction to best meet the individual 40.35 and diverse needs of the students in the classroom. A school 40.36 district or charter school must determine the scope of the 41.1 differentiated instruction. 41.2 Subd. 2. [APPEAL OF DECISIONS TO RETAIN A STUDENT.] After 41.3 meeting with the student, the student's parent or guardian, the 41.4 student's teacher or teachers, and the school principal or other 41.5 appropriate administrator to discuss the student's proposed 41.6 retention under subdivision 1, the principal or other 41.7 administrator must provide timely written notice to the student 41.8 and parent or guardian of the school's decision about promoting 41.9 or retaining the student. The student's parent or guardian has 41.10 20 days from the date of receiving the notice to submit a 41.11 written appeal of the decision to the school superintendent or 41.12 charter school director and must list the reasons for the 41.13 appeal. The school superintendent or charter school director 41.14 must give timely written notice to the student's parent or 41.15 guardian of the school superintendent's or charter school 41.16 director's decision regarding the appeal, which is a final 41.17 decision. 41.18 Subd. 3. [EXEMPTION.] A student with an individual 41.19 education plan under sections 125A.05 and 125A.06 and a pupil of 41.20 limited English proficiency under section 124D.59, subdivision 41.21 2, are exempt from this section. 41.22 Subd. 4. [SCHOOL POLICY.] A school board or charter school 41.23 board of directors must, by August 1, 2005, adopt a student 41.24 retention policy and procedure that includes the requirements 41.25 under this section. 41.26 [EFFECTIVE DATE.] This section is effective for the 41.27 2005-2006 school year and later. 41.28 Sec. 11. [120B.131] [GIFTED AND TALENTED PROGRAM 41.29 DEVELOPMENT AND STUDENT IDENTIFICATION.] 41.30 Subdivision 1. [PURPOSE.] The legislature finds that it is 41.31 critical for gifted and talented students to be identified and 41.32 appropriately served. 41.33 Subd. 2. [STUDENT IDENTIFICATION.] School districts are 41.34 strongly encouraged to identify and assess students for possible 41.35 placement in appropriate gifted and talented educational 41.36 services. Consideration in student identification includes: 42.1 (1) a balance of multiple objective and subjective 42.2 criteria, which may include performances as well as test 42.3 results; 42.4 (2) an ongoing, comprehensive district assessment system 42.5 that guides instruction and services offered; 42.6 (3) use of assessment instruments and procedures that are 42.7 valid and reliable and based on current theory and research; 42.8 (4) placement decisions that are fair and consistent, 42.9 valid, and reliable; 42.10 (5) provisions for informed consent, retention, 42.11 reassessment, exiting, and appeals; 42.12 (6) an open process available to all students; and 42.13 (7) an identification process and collected information 42.14 shared with parents, educational staff, and students themselves. 42.15 Sec. 12. [120B.135] [SCHOLARS OF DISTINCTION PROGRAM 42.16 ADMINISTRATION.] 42.17 (a) The commissioner shall expand the Minnesota scholars of 42.18 distinction program to include mathematics, science, leadership, 42.19 and theater arts in order to nurture and recognize distinguished 42.20 achievement by highly motivated students in those subjects. The 42.21 commissioner shall authorize the creation of statewide 42.22 coordinating boards to oversee the implementation of the 42.23 mathematics, science, leadership, and theater arts specialty 42.24 areas for the program. Each statewide coordinating board shall 42.25 include representatives of kindergarten through grade 12 42.26 schools, higher education, businesses, or others familiar with 42.27 applying complex knowledge and skills to real-world problems in 42.28 that specialty. Each coordinating board shall manage and 42.29 implement the program so that as many kindergarten through grade 42.30 12 students as possible who are willing to commit time, rigorous 42.31 study, and dedication to learning the specialty have the 42.32 opportunity to participate. Each coordinating board must 42.33 establish a statewide certification panel to determine whether 42.34 students have met the requirements for the particular 42.35 specialty. The coordinating boards must provide assistance, if 42.36 requested, to schools, community organizations, and other 43.1 entities wishing to establish the program. The coordinating 43.2 boards are required to seek permanent funding so that the 43.3 scholars of distinction program may be permanently continued in 43.4 each specialty area. 43.5 (b) For each specialty, student participants must be 43.6 required to demonstrate mastery of complex subject matter and 43.7 apply their knowledge and skills on challenging projects. 43.8 Students who earn the scholar of distinction honor shall be 43.9 awarded a small scholarship, the amount of which shall be 43.10 determined by the coordinating board for the particular 43.11 specialty. A notation identifying the student as a Minnesota 43.12 scholar of distinction in a particular specialty must be made on 43.13 the transcript of each student who successfully completes the 43.14 program. 43.15 Sec. 13. [120B.225] [CHARACTER DEVELOPMENT EDUCATION.] 43.16 Subdivision 1. [CHARACTER DEVELOPMENT EDUCATION.] The 43.17 legislature encourages districts to integrate or offer 43.18 instruction on character education including, but not limited 43.19 to, character qualities such as attentiveness, truthfulness, 43.20 respect for authority, diligence, gratefulness, self-control, 43.21 forgiveness, generosity, orderliness, tolerance, loyalty, 43.22 sensitivity, patience, virtue, and resourcefulness. Districts 43.23 are encouraged to use programs such as Character First and 43.24 Character Counts. Instruction should be integrated into a 43.25 district's existing programs, curriculum, or the general school 43.26 environment. The commissioner shall provide assistance at the 43.27 request of a district to develop character education curriculum 43.28 and programs. 43.29 Subd. 2. [FUNDING SOURCES.] The commissioner must first 43.30 use federal funds for character development education programs 43.31 to the extent available under United States Code, title 20, 43.32 section 7247. Districts may accept funds from private and other 43.33 public sources for character development education programs 43.34 developed and implemented under this section. 43.35 [EFFECTIVE DATE.] This section is effective the day 43.36 following final enactment. 44.1 Sec. 14. Minnesota Statutes 2002, section 120B.23, as 44.2 amended by Laws 2003, chapter 150, section 12, is amended to 44.3 read: 44.4 120B.23 [VIOLENCE PREVENTION AND CHARACTER DEVELOPMENT 44.5 EDUCATION GRANTS.] 44.6 Subdivision 1. [GRANT PROGRAM ESTABLISHED.] The 44.7 commissioner of education, after consulting with the assistant 44.8 commissioner of the Office of Drug Policy and Violence 44.9 Prevention, shall establish a violence prevention education and 44.10 character development education grant program to enable a school 44.11 district, an education district, or a group of districts that 44.12 cooperate for a particular purpose to develop and implement or 44.13 to continue a violence prevention program, character development 44.14 program, or both, for students in kindergarten through grade 12 44.15 that can be integrated into existing curriculum or the school 44.16 environment. A district or group of districts that elects to 44.17 develop and implement or to continue a violence prevention 44.18 program under section 120B.22, a character development program 44.19 under section 120B.225, or both, is eligible to apply for a 44.20 grant under this section. 44.21 Subd. 2. [GRANT APPLICATION.] To be eligible to receive a 44.22 grant, a school district, an education district, a service 44.23 cooperative, or a group of districts that cooperate for a 44.24 particular purpose must submit an application to the 44.25 commissioner in the form and manner and according to the 44.26 timeline established by the commissioner. The application must 44.27 describe how the applicant will: (1) continue or integrate into 44.28 its existing K-12 curriculum and on the school environment a 44.29 program for violence preventionthat contains the program44.30components listed in section 120B.22, character development, or 44.31 both; (2) collaborate with local organizations involved in 44.32 violence prevention and intervention, character development, or 44.33 both; and (3) structure the program to reflect the 44.34 characteristics of the children, their families and the 44.35 community involved in the program. The commissioner may require 44.36 additional information from the applicant. When reviewing the 45.1 applications, the commissioner shall determine whether the 45.2 applicant has met the requirements of this subdivision. 45.3 Subd. 3. [GRANT AWARDS.] The commissioner may award grants 45.4 for a violence prevention education program, character 45.5 development education program, or both, to eligible applicants 45.6 as defined in subdivision 2. Grant amounts may not exceed $3 45.7 per resident pupil unit in the district or group of districts in 45.8 the prior school year. Grant recipients should be 45.9 geographically distributed throughout the state. 45.10 Subd. 4. [GRANT PROCEEDS.] A successful applicant must use 45.11 the grant money to develop and implement or to continue a 45.12 violence prevention program, character development program, or 45.13 both, according to the terms of the grant application. 45.14 [EFFECTIVE DATE.] This section is effective the day 45.15 following final enactment. 45.16 Sec. 15. Minnesota Statutes 2003 Supplement, section 45.17 120B.36, is amended to read: 45.18 120B.36 [SCHOOL ACCOUNTABILITY; APPEALS PROCESS.] 45.19 Subdivision 1. [SCHOOL PERFORMANCE REPORT CARDS.] (a) The 45.20 commissioner shall use objective criteria based on levels of 45.21 student performance to identify four to six designations 45.22 applicable to high and low performing public schools. The 45.23 objective criteria shall include at least student academic 45.24 performance, school safety, and staff characteristics, with a 45.25 value-added growth component added by the 2006-2007 school year. 45.26 (b) The commissioner shall develop, annually update, and 45.27 post on the department Web site school performance report cards. 45.28 A school's designation must be clearly stated on each school 45.29 performance report card. 45.30 (c) The commissioner must make available the first school 45.31 designations and school performance report cards by November 45.32 2003, and during the beginning of each school year thereafter. 45.33 (d) A school or district may appeal in writing a 45.34 designation under this section to the commissioner within 30 45.35 days of receiving the designation. The commissioner's decision 45.36 to uphold or deny an appeal is final. 46.1 (e) School performance report cards are nonpublic data 46.2 under section 13.02, subdivision 9, until not later than ten 46.3 days after the appeal procedure described in paragraph (d) 46.4 concludes. The department shall annually post school 46.5 performance report cards to its public Web site no later than 46.6 September 1. 46.7 Subd. 2. [ADEQUATE YEARLY PROGRESS DATA.] All data the 46.8 department receives, collects, or creates for purposes of 46.9 determining adequate yearly progress designations under Public 46.10 Law 107-110, section 1116, are nonpublic data under section 46.11 13.02, subdivision 9, until not later than ten days after the 46.12 appeal procedure described in subdivision 1, paragraph (d), 46.13 concludes. Districts must provide parents sufficiently detailed 46.14 summary data to permit parents to appeal under Public Law 46.15 107-110, section 1116(b)(2). The department shall annually post 46.16 adequate yearly progress data to its public Web site no later 46.17 than September 1. 46.18 [EFFECTIVE DATE.] This section is effective the day 46.19 following final enactment. 46.20 Sec. 16. [120B.362] [VALUE-ADDED ASSESSMENT PROGRAM.] 46.21 (a) The commissioner of education must develop a value 46.22 added assessment program to assist school districts, public 46.23 schools, and charter schools in assessing and reporting 46.24 students' growth in academic achievement under section 120B.30, 46.25 subdivision 1a. The program must use assessments of students' 46.26 academic achievement to make longitudinal comparisons of each 46.27 student's academic growth over time. School districts, public 46.28 schools, and charter schools may apply to the commissioner to 46.29 participate in the program using a form and in the manner the 46.30 commissioner prescribes. The commissioner must select program 46.31 participants from urban, suburban, and rural areas throughout 46.32 the state and no more than 125,000 students may participate. 46.33 (b) The commissioner may contract with an organization that 46.34 provides a value-added assessment model that reliably estimates 46.35 school and school district effects on students' academic 46.36 achievement over time for different classroom settings where a 47.1 single teacher teaches multiple subjects to the same group of 47.2 students, for team teaching arrangements, and for other teaching 47.3 circumstances. The data on individual teachers generated from a 47.4 value-added assessment model is private data under section 47.5 13.02, subdivision 12. The model the commissioner selects must 47.6 accommodate diverse data from various test sources and must use 47.7 each student's test data across grades and subjects even when 47.8 the data are incomplete. 47.9 (c) The contract under paragraph (b) must be consistent 47.10 with the definition of "best value" under section 16C.02, 47.11 subdivision 4. 47.12 [EFFECTIVE DATE.] This section is effective the day 47.13 following final enactment. 47.14 Sec. 17. [121A.032] [SCHOOL BOARD POLICY OPPOSING 47.15 BULLYING.] 47.16 Each school board must adopt a written district wide policy 47.17 that opposes bullying. Districts annually must notify students, 47.18 teachers, administrators, volunteers, contractors and other 47.19 school employees of this policy and, in those districts that 47.20 provide a student handbook, must publish the policy in the 47.21 student handbook. 47.22 [EFFECTIVE DATE.] This section is effective for the 47.23 2004-2005 school year and later. 47.24 Sec. 18. Minnesota Statutes 2002, section 121A.22, 47.25 subdivision 2, is amended to read: 47.26 Subd. 2. [EXCLUSIONS.] In addition, this section does not 47.27 apply to drugs or medicine that are: 47.28 (1)that can bepurchased without a prescription; 47.29 (2)that areused by a pupil who is 18 years old or older; 47.30 (3)that areused in connection with services for which a 47.31 minor may give effective consent, including section 144.343, 47.32 subdivision 1, and any other law; 47.33 (4)that areused in situations in which, in the judgment 47.34 of the school personnel who are present or available, the risk 47.35 to the pupil's life or health is of such a nature that drugs or 47.36 medicine should be given without delay; 48.1 (5)that areused off the school grounds; 48.2 (6)that areused in connection with athletics or extra 48.3 curricular activities; 48.4 (7)that areused in connection with activities that occur 48.5 before or after the regular school day; 48.6 (8)that areprovided or administered by a public health 48.7 agencyin orderto prevent or control an illness or a disease 48.8 outbreak as provided for in sections 144.05 and 144.12;or48.9 (9)that areprescription asthma or reactive airway disease 48.10 medications self-administered by a pupil with an asthma inhaler 48.11 if the district has received a written authorization from the 48.12 pupil's parent permitting the pupil to self-administer the 48.13 medication, the inhaler is properly labeled for that student, 48.14 and the parent has not requested school personnel to administer 48.15 the medication to the pupil. The parent must submit written 48.16 authorization for the pupil to self-administer the medication 48.17 each school year; or 48.18 (10) prescription nonsyringe injectors of epinephrine, 48.19 consistent with section 122A.2205, if the parent and prescribing 48.20 medical professional annually inform the pupil's school in 48.21 writing that (i) the pupil may possess the epinephrine or (ii) 48.22 the pupil is unable to possess the epinephrine and requires 48.23 immediate access to nonsyringe injectors of epinephrine that the 48.24 parent provides properly labeled to the school for the pupil as 48.25 needed. 48.26 [EFFECTIVE DATE.] This section is effective for the 48.27 2004-2005 school year and later. 48.28 Sec. 19. Minnesota Statutes 2002, section 121A.45, 48.29 subdivision 3, is amended to read: 48.30 Subd. 3. [PARENT NOTIFICATION AND MEETING.] If a pupil's 48.31 total days of removal from school exceeds ten cumulative days in 48.32 a school year, the school district shall make reasonable 48.33 attempts to convene a meeting with the pupil and the pupil's 48.34 parent or guardianprior tobefore subsequently removing the 48.35 pupil from school and, with the permission of the parent or 48.36 guardian, suggest arrangements for a mental health screening for 49.1 the pupil. The purpose of this meeting is to attempt to 49.2 determine the pupil's need for assessment or other services or 49.3 whether the parent or guardian should have the pupil screened, 49.4 assessed, or diagnosed to determine whether the pupil needs 49.5 treatment for a mental health disorder. 49.6 Sec. 20. Minnesota Statutes 2002, section 121A.48, is 49.7 amended to read: 49.8 121A.48 [GOOD FAITH EXCEPTION.] 49.9 A violation of the technical provisions of the Pupil Fair 49.10 Dismissal Act or of section 121A.032, made in good faith, is not 49.11 a defense to a disciplinary procedure under the act or section 49.12 121A.032 unless the pupil can demonstrate actual prejudice as a 49.13 result of the violation. 49.14 [EFFECTIVE DATE.] This section is effective for the 49.15 2004-2005 school year and later. 49.16 Sec. 21. Minnesota Statutes 2003 Supplement, section 49.17 121A.64, is amended to read: 49.18 121A.64 [NOTIFICATION; TEACHERS' LEGITIMATE EDUCATIONAL 49.19 INTEREST.] 49.20 (a) A classroom teacher has a legitimate educational 49.21 interest in knowing which students placed in the teacher's 49.22 classroom have a history of violent behavior and must be 49.23 notified before such students are placed in the teacher's 49.24 classroom. 49.25 (b) Representatives of the school board and the exclusive 49.26 representative of the teachers shall discuss issues related to 49.27 the model policy on student records adopted under Laws 1999, 49.28 chapter 241, article 9, section 50, and any modifications 49.29 adopted under Laws 2003, First Special Session chapter 9, for 49.30 notifying classroom teachers and other school district employees 49.31 having a legitimate educational interest in knowing about 49.32 students with a history of violent behavior placed in 49.33 classrooms. The representatives of the school board and the 49.34 exclusive representative of the teachers also may discuss the 49.35 need for intervention services or conflict resolution or 49.36 training for staff related to placing students with a history of 50.1 violent behavior in teachers' classrooms. 50.2 (c) A school district or employee of a school district is 50.3 immune from liability in any civil, administrative, or criminal 50.4 action relating to this section if a good faith effort has been 50.5 made to comply with the notification requirement. A school 50.6 district is required to adopt a policy that implements this 50.7 section. 50.8 Sec. 22. Minnesota Statutes 2002, section 121A.75, is 50.9 amended by adding a subdivision to read: 50.10 Subd. 4. [IMMUNITY FROM LIABILITY.] A school district or 50.11 employee of a school district is immune from liability in any 50.12 civil, administrative, or criminal action relating to this 50.13 section if a good faith effort has been made to comply with the 50.14 notification requirements. A school district is required to 50.15 adopt a policy that implements this section. 50.16 Sec. 23. Minnesota Statutes 2002, section 122A.06, 50.17 subdivision 4, is amended to read: 50.18 Subd. 4. [COMPREHENSIVE, SCIENTIFICALLY BASED READING 50.19 INSTRUCTION.]"Comprehensive, scientifically based reading50.20instruction" includes instruction and practice in phonemic50.21awareness, phonics and other word-recognition skills, and guided50.22oral reading for beginning readers, as well as extensive silent50.23reading, vocabulary instruction, instruction in comprehension,50.24and instruction that fosters understanding and higher-order50.25thinking for readers of all ages and proficiency50.26levels."Comprehensive, scientifically based reading 50.27 instruction" includes, at a minimum, a program or collection of 50.28 instructional practices with a proven record of success and with 50.29 reliable, trustworthy, and valid evidence to support the 50.30 conclusion that when these methods are used with learners, they 50.31 can be expected to achieve, at a minimum, satisfactory progress 50.32 in reading achievement. The program or collection of practices 50.33 must include, at a minimum, instruction in five areas of reading: 50.34 phonemic awareness, phonics, fluency, vocabulary, and text 50.35 comprehension. 50.36 Comprehensive, scientifically based reading instruction 51.1 also includes and integrates instructional strategies for 51.2 continuously assessing and diagnosing the learner's reading 51.3 progress and needs in order to design and implement ongoing 51.4 interventions so that learners of all ages and proficiency 51.5 levels can read and comprehend text as well as apply higher 51.6 level thinking skills. 51.7 Sec. 24. Minnesota Statutes 2003 Supplement, section 51.8 122A.09, subdivision 4, is amended to read: 51.9 Subd. 4. [LICENSE AND RULES.] (a) The board must adopt 51.10 rules to license public school teachers and interns subject to 51.11 chapter 14. 51.12 (b) The board must adopt rules requiring a person to 51.13 successfully complete a skills examination in reading, writing, 51.14 and mathematics as a requirement for initial teacher licensure. 51.15 Such rules must require college and universities offering a 51.16 board-approved teacher preparation program to provide remedial 51.17 assistance to persons who did not achieve a qualifying score on 51.18 the skills examination, including those for whom English is a 51.19 second language. 51.20 (c) The board must adopt rules to approve teacher 51.21 preparation programs. The board, upon the request of a 51.22 postsecondary student preparing for teacher licensure or a 51.23 licensed graduate of a teacher preparation program, shall assist 51.24 in resolving a dispute between the person and a postsecondary 51.25 institution providing a teacher preparation program when the 51.26 dispute involves an institution's recommendation for licensure 51.27 affecting the person or the person's credentials. At the 51.28 board's discretion, assistance may include the application of 51.29 chapter 14. 51.30 (d) The board must provide the leadership and shall adopt 51.31 rules for the redesign of teacher education programs to 51.32 implement a research based, results-oriented curriculum that 51.33 focuses on the skills teachers need in order to be effective. 51.34 The board shall implement new systems of teacher preparation 51.35 program evaluation to assure program effectiveness based on 51.36 proficiency of graduates in demonstrating attainment of program 52.1 outcomes. 52.2 (e) The board must adopt rules requiring successful 52.3 completion of an examination of general pedagogical knowledge 52.4 and examinations of licensure-specific teaching skills. The 52.5 rules shall be effective on the dates determined by the board 52.6 but not later than September 1, 2001. 52.7 (f) The board must adopt rules requiring teacher educators 52.8 to work directly with elementary or secondary school teachers in 52.9 elementary or secondary schools to obtain periodic exposure to 52.10 the elementary or secondary teaching environment. 52.11 (g) The board must grant licenses to interns and to 52.12 candidates for initial licenses. 52.13 (h) The board must design and implement an assessment 52.14 system which requires a candidate for an initial license and 52.15 first continuing license to demonstrate the abilities necessary 52.16 to perform selected, representative teaching tasks at 52.17 appropriate levels. 52.18 (i) The board must receive recommendations from local 52.19 committees as established by the board for the renewal of 52.20 teaching licenses. 52.21 (j) The board must grant life licenses to those who qualify 52.22 according to requirements established by the board, and suspend 52.23 or revoke licenses pursuant to sections 122A.20 and 214.10. The 52.24 board must not establish any expiration date for application for 52.25 life licenses. 52.26 (k) The board must adopt rules that require all licensed 52.27 teachers who are renewing their continuing license to include in 52.28 their renewal requirements further preparation in the areas of 52.29 using positive behavior interventions and in accommodating, 52.30 modifying, and adapting curricula, materials, and strategies to 52.31 appropriately meet the needs of individual students and ensure 52.32 adequate progress toward the state's graduation rule. 52.33 (l) In adopting rules to license public school teachers who 52.34 provide health-related services for disabled children, the board 52.35 shall adopt rules consistent with license or registration 52.36 requirements of the commissioner of health and the 53.1 health-related boards who license personnel who perform similar 53.2 services outside of the school. 53.3 (m) The board must adopt rules that require all licensed 53.4 teachers who are renewing their continuing license to include in 53.5 their renewal requirements further reading preparation, 53.6 consistent with section 122A.06, subdivision 4. The rules do 53.7 not take effect until they are approved by law. The Board of 53.8 Teaching may adopt rules to exempt teachers who do not provide 53.9 direct instruction including, at least, counselors, school 53.10 psychologists, school nurses, school social workers, audiovisual 53.11 directors and coordinators, recreation personnel, and speech 53.12 language pathologists. 53.13 (n) The board must adopt rules that require all licensed 53.14 teachers who are renewing their continuing license to include in 53.15 their renewal requirements further preparation in understanding 53.16 the key warning signs of early-onset mental illness in children 53.17 and adolescents. 53.18 [EFFECTIVE DATE.] This section is effective the day 53.19 following final enactment. 53.20 Sec. 25. Minnesota Statutes 2002, section 122A.12, is 53.21 amended by adding a subdivision to read: 53.22 Subd. 2a. [DISTRICT REIMBURSEMENT FOR COST OF SUBSTITUTE 53.23 TEACHER.] The board may reimburse a school district for the cost 53.24 of a substitute teacher employed when the regular classroom 53.25 teacher is providing professional assistance to the state by 53.26 serving on the Board of School Administrators. 53.27 Sec. 26. Minnesota Statutes 2002, section 122A.16, is 53.28 amended to read: 53.29 122A.16 [HIGHLY QUALIFIED TEACHER DEFINED.] 53.30 (a) A highly qualified teacheris one holdingholds a valid 53.31 license, under this chapter, to perform the particular service 53.32 for which the teacher is employed in a public school. 53.33 (b) A highly qualified teacher includes those teachers who 53.34 satisfy paragraph (b), (c), or (d) under this section so that 53.35 highly qualified teachers include: 53.36 (1) all elementary school teachers newly hired at the 54.1 beginning of the 2002-2003 school year or later to teach in a 54.2 Title I, Part A program who are licensed, hold at least a 54.3 bachelor's degree from an accredited postsecondary institution, 54.4 and pass a rigorous state test under section 122A.18 that 54.5 demonstrates subject knowledge and teaching skills in reading, 54.6 writing, mathematics, and other areas of the basic elementary 54.7 school curriculum; and 54.8 (2) all middle and secondary school teachers newly hired at 54.9 the beginning of the 2002-2003 school year or later to teach in 54.10 a Title I, Part A program who are licensed, hold at least a 54.11 bachelor's degree from an accredited postsecondary institution, 54.12 and demonstrate a high level of competency by (i) passing a 54.13 rigorous academic subject area test under section 122A.18 in 54.14 each core academic subject the teacher teaches, or (ii) 54.15 successfully completing, in each of the academic subjects in 54.16 which the teacher teaches, an academic major, a graduate degree, 54.17 course work equivalent to an academic major, or advanced 54.18 certification. 54.19 Except newly hired teachers under clauses (1) and (2), and 54.20 teachers in rural areas, all teachers, including elementary 54.21 school teachers, middle school content teachers, secondary 54.22 school content teachers, charter school teachers, vocational 54.23 education teachers, and bilingual and English as a second 54.24 language teachers, who provide direct instruction to students in 54.25 core academic subjects must satisfy the definition of a highly 54.26 qualified teacher under clause (1) or (2), as appropriate, by 54.27 the end of the 2005-2006 school year or through the High 54.28 Objective Uniform State Standard of Evaluation (HOUSSE) process. 54.29 Teachers in rural areas, including elementary school 54.30 teachers, middle school content teachers, secondary school 54.31 content teachers, charter school teachers, vocational education 54.32 teachers, and bilingual and English as a second language 54.33 teachers, who provide direct instruction to students in core 54.34 academic subjects must satisfy the definition of a highly 54.35 qualified teacher under clause (1) or (2), as appropriate, by 54.36 the end of the 2006-2007 school year, or through the High 55.1 Objective Uniform State Standard of Evaluation (HOUSSE) process. 55.2 Core academic subjects under this section include English, 55.3 reading, or language arts; mathematics; sciences; world 55.4 languages; civics and government; economics; history; and arts 55.5 including music, visual arts, theater arts, and dance. 55.6 (c) All Minnesota teachers holding licenses and teaching in 55.7 a core academic subject area in which they are licensed as 55.8 reported under the state's STAR system, are highly qualified. 55.9 (d) All Minnesota teachers teaching in a core academic 55.10 subject area in which they are not fully licensed are not highly 55.11 qualified and may complete the following HOUSSE process in the 55.12 core subject area for which the teacher is requesting highly 55.13 qualified status by completing an application, in the form and 55.14 manner described by the commissioner, that includes: 55.15 (1) documentation of student achievement that demonstrates 55.16 at least one year of academic growth as evidenced by 55.17 norm-referenced test results that are objective and 55.18 psychometrically valid and reliable; 55.19 (2) evidence of local, state, or national activities, 55.20 recognition, or awards for professional contribution to 55.21 achievement; 55.22 (3) description of teaching experience in the teachers' 55.23 core subject area in a public school under a waiver, variance, 55.24 limited license or other exception; nonpublic school; and 55.25 postsecondary institution: 55.26 (4) test results from the Praxis II content test; 55.27 (5) evidence of advanced certification from organizations, 55.28 such as the National Board for Professional Teaching Standards 55.29 (NBPTS) or the American Board for Certification of Teaching 55.30 Excellence (ABCTE); 55.31 (6) evidence of the successful completion of course work or 55.32 pedagogy courses; and 55.33 (7) evidence of the successful completion of high quality 55.34 professional development activities. 55.35 Districts must assign a school administrator to serve as a 55.36 HOUSSE reviewer to meet with teachers under this paragraph and, 56.1 where appropriate, certify the teachers' applications. Teachers 56.2 satisfy the definition of highly qualified when the teachers 56.3 receive at least 100 of the total number of points used to 56.4 measure the teachers' content expertise under clauses (1) to 56.5 (7). Teachers may use the HOUSSE process to satisfy the 56.6 definition of highly qualified for more than one subject area in 56.7 a single academic discipline. 56.8 [EFFECTIVE DATE.] This section is effective the day 56.9 following final enactment. 56.10 Sec. 27. Minnesota Statutes 2002, section 122A.18, 56.11 subdivision 2a, is amended to read: 56.12 Subd. 2a. [READING STRATEGIES.] (a) All colleges and 56.13 universities approved by the Board of Teaching to prepare 56.14 persons for classroom teacher licensure must include in their 56.15 teacher preparation programsreading best practices that enable56.16classroom teacher licensure candidates to know how to teach56.17reading, such as phonics or otherresearch-based best practices 56.18 in reading, consistent with section 122A.06, subdivision 4, that 56.19 enable the licensure candidate to know how to teach reading in 56.20 the candidate's content areas. 56.21 (b) Board-approved teacher preparation programs for 56.22 teachers of elementary education must require instruction in the 56.23 application of comprehensive, scientifically based, and balanced 56.24 reading instruction programs.that: 56.25 (1) teach students to read using foundational knowledge, 56.26 practices, and strategies consistent with section 122A.06, 56.27 subdivision 4, so that all students will achieve continuous 56.28 progress in reading; and 56.29 (2) teach specialized instruction in reading strategies, 56.30 interventions, and remediations that enable students of all ages 56.31 and proficiency levels to become proficient readers. 56.32 Sec. 28. Minnesota Statutes 2002, section 122A.18, is 56.33 amended by adding a subdivision to read: 56.34 Subd. 2c. [LITERACY SPECIALIST LICENSURE.] No later than 56.35 July 1, 2005, the Board of Teaching must adopt rules providing 56.36 for licensing literacy specialists who possess sufficient 57.1 training and experience to assist teachers of reading and other 57.2 teachers throughout the district or at a school site to 57.3 effectively teach students to read. Candidates for licensure 57.4 must successfully complete training in comprehensive, 57.5 scientifically based reading instruction consistent with section 57.6 122A.06, subdivision 4, and a graduate level degree in reading 57.7 or literacy. 57.8 Sec. 29. Minnesota Statutes 2002, section 122A.20, 57.9 subdivision 2, is amended to read: 57.10 Subd. 2. [MANDATORY REPORTING.] A school board must report 57.11 to the Board of Teaching, the Board of School Administrators, or 57.12 the Board of Trustees of the Minnesota State Colleges and 57.13 Universities, whichever has jurisdiction over the teacher's or 57.14 administrator's license, when its teacher or administrator is 57.15 discharged or resigns from employment after a charge is filed 57.16 with the school board under section 122A.41, subdivisions 6, 57.17 clauses (1), (2), and (3), and 7, or after charges are filed 57.18 that are ground for discharge under section 122A.40, subdivision 57.19 13, paragraph (a), clauses (1) to (5), or when a teacher or 57.20 administrator is suspended or resigns while an investigation is 57.21 pending under section 122A.40, subdivision 13, paragraph (a) 57.22 clauses (1) to (5); 122A.41, subdivisions 6, clauses (1), (2), 57.23 and (3), and 7; or 626.556, or when a teacher or administrator 57.24 is suspended without an investigation under section 122A.41, 57.25 subdivisions 6, paragraph (a), clauses (1), (2), and (3), and 7; 57.26 or 626.556. The report must be made to the appropriate 57.27 licensing board within ten days after the discharge, suspension, 57.28 or resignation has occurred. The licensing board to which the 57.29 report is made must investigate the report for violation of 57.30 subdivision 1 and the reporting board must cooperate in the 57.31 investigation. Notwithstanding any provision in chapter 13 or 57.32 any law to the contrary, upon written request from the licensing 57.33 board having jurisdiction over the license, a board or school 57.34 superintendent shall provide the licensing board with 57.35 information about the teacher or administrator from the 57.36 district's files, any termination or disciplinary proceeding, 58.1 any settlement or compromise, or any investigative file. Upon 58.2 written request from the appropriate licensing board, a board or 58.3 school superintendent may, at the discretion of the board or 58.4 school superintendent, solicit the written consent of a student 58.5 and the student's parent to provide the licensing board with 58.6 information that may aid the licensing board in its 58.7 investigation and license proceedings. The licensing board's 58.8 request need not identify a student or parent by name. The 58.9 consent of the student and the student's parent must meet the 58.10 requirements of chapter 13 and Code of Federal Regulations, 58.11 title 34, section 99.30. The licensing board may provide a 58.12 consent form to the district. Any data transmitted to any board 58.13 under this section is private data under section 13.02, 58.14 subdivision 12, notwithstanding any other classification of the 58.15 data when it was in the possession of any other agency. 58.16 The licensing board to which a report is made must transmit 58.17 to the Attorney General's Office any record or data it receives 58.18 under this subdivision for the sole purpose of having the 58.19 Attorney General's Office assist that board in its 58.20 investigation. When the Attorney General's Office has informed 58.21 an employee of the appropriate licensing board in writing that 58.22 grounds exist to suspend or revoke a teacher's license to teach, 58.23 that licensing board must consider suspending or revoking or 58.24 decline to suspend or revoke the teacher's or administrator's 58.25 license within 45 days of receiving a stipulation executed by 58.26 the teacher or administrator under investigation or a 58.27 recommendation from an administrative law judge that 58.28 disciplinary action be taken. 58.29 Sec. 30. [122A.2205] [POSSESSION AND USE OF NONSYRINGE 58.30 INJECTORS OF EPINEPHRINE; MODEL POLICY.] 58.31 (a) At the start of each school year or at the time a 58.32 student enrolls in school, whichever is first, a student's 58.33 parent, school staff including those responsible for student 58.34 health care, and the prescribing medical professional must 58.35 develop and implement an individualized written health plan for 58.36 a student who is prescribed nonsyringe injectors of epinephrine 59.1 that enables the student to: 59.2 (1) possess nonsyringe injectors of epinephrine; or 59.3 (2) if the parent and prescribing medical professional 59.4 determine the student is unable to possess the epinephrine, have 59.5 immediate access to nonsyringe injectors of epinephrine in 59.6 school at all times during the school day. 59.7 The plan must designate the school staff responsible for 59.8 implementing the student's health plan, including recognizing 59.9 anaphylaxis and administering nonsyringe injectors of 59.10 epinephrine when required, consistent with section 121A.22, 59.11 subdivision 2, clause (10). This health plan may be included in 59.12 a student's 504 plan. 59.13 (b) A school under this section is a public school under 59.14 section 120A.22, subdivision 4, or a nonpublic school, excluding 59.15 a home school, under section 120A.22, subdivision 4, that is 59.16 subject to the federal Americans with Disabilities Act. Other 59.17 nonpublic schools are encouraged to develop and implement an 59.18 individualized written health plan for students requiring 59.19 nonsyringe injectors of epinephrine, consistent with this 59.20 section and section 121A.22, subdivision 2, clause (10). 59.21 (c) A school district and its agents and employees are 59.22 immune from liability for any act or failure to act, made in 59.23 good faith, in implementing this section. 59.24 (d) The education commissioner may develop and transmit to 59.25 interested schools a model policy and individualized health plan 59.26 form consistent with this section and federal 504 plan 59.27 requirements. The policy and form may: 59.28 (1) assess a student's ability to safely possess nonsyringe 59.29 injectors of epinephrine; 59.30 (2) identify staff training needs related to recognizing 59.31 anaphylaxis and administering epinephrine when needed; 59.32 (3) accommodate a student's need to possess or have 59.33 immediate access to nonsyringe injectors of epinephrine in 59.34 school at all times during the school day; and 59.35 (4) ensure that the student's parent provides properly 59.36 labeled nonsyringe injectors of epinephrine to the school for 60.1 the student as needed. 60.2 (e) Additional nonsyringe injectors of epinephrine may be 60.3 made available in school first aid kits. 60.4 [EFFECTIVE DATE.] This section is effective for the 60.5 2004-2005 school year and later. 60.6 Sec. 31. [122A.245] [TEACHER TRAINING PROGRAM FOR 60.7 QUALIFIED PROFESSIONALS.] 60.8 Subdivision 1. [REQUIREMENTS.] (a) As an alternative to 60.9 postsecondary teacher preparation programs and alternative 60.10 preparation licensing for teachers under section 122A.24, a 60.11 teacher training program is established for qualified 60.12 professionals to acquire an entrance license. Providers, 60.13 approved by the commissioner under subdivision 3, may offer the 60.14 program to train a maximum of 300 teachers per year in the 60.15 instructional fields of special education, science, math, 60.16 reading, English as a second language, communication arts and 60.17 literature, business, world languages, and library and media 60.18 specialist. 60.19 (b) To participate in the teacher training program, the 60.20 applicant must: 60.21 (1) have a bachelor's degree from an accredited four-year 60.22 postsecondary institution; 60.23 (2) have an undergraduate major or postbaccalaureate degree 60.24 in the subject to be taught or have equivalent academic 60.25 qualifications in the subject area in which the applicant is 60.26 seeking licensure; 60.27 (3) have a minimum of five years of professional employment 60.28 in a subject area related to the subject area in which the 60.29 applicant is seeking licensure; and 60.30 (4) pass a skills exam in reading, writing, and mathematics 60.31 under section 122A.18. 60.32 (c) Teachers currently teaching under a variance issued by 60.33 the Board of Teaching may apply to participate in this program. 60.34 Subd. 2. [PROGRAM.] The teacher training program must 60.35 include: 60.36 (1) 200 clock hours of intensive training in classroom 61.1 management, curriculum, and instruction; and 61.2 (2) a minimum of five seminars totaling at least 20 clock 61.3 hours during the applicant's first year of teaching. 61.4 Subd. 3. [PROGRAM APPROVAL.] The commissioner must approve 61.5 teacher training programs under this section based on criteria 61.6 developed by an advisory group appointed by the commissioner. 61.7 The advisory group at least must include representatives of the 61.8 Board of Teaching, school superintendents, and postsecondary 61.9 institutions, including those offering degrees in teacher 61.10 preparation. 61.11 By January 15, 2005, the commissioner must report to the 61.12 legislative committees with responsibility for higher education 61.13 on the criteria for teacher training programs developed by the 61.14 advisory group under this subdivision. 61.15 An approved teacher training program must require program 61.16 participants to complete the standards of effective practice for 61.17 teachers under Minnesota Rules, part 8710.2000. 61.18 Subd. 4. [PROGRAM DELIVERY.] Postsecondary institutions 61.19 and district-created teacher academies, among other entities, 61.20 may apply to the commissioner in the form and manner the 61.21 commissioner indicates, to deliver a teacher training program 61.22 under this section to train a maximum of 300 teachers per year. 61.23 Subd. 5. [ELIGIBILITY LICENSE.] An applicant who 61.24 successfully completes the training under subdivision 2, clause 61.25 (1), and passes the Praxis II content exam under section 61.26 122A.09, subdivision 4, paragraph (e), may receive a one-year 61.27 eligibility license and begin teaching. During the one-year 61.28 eligibility period, the district must assign a teacher who holds 61.29 a regular teaching license to mentor the applicant teacher. The 61.30 applicant teacher and teacher mentor must meet at least once 61.31 every week. 61.32 Subd. 6. [STANDARD ENTRANCE LICENSE.] The Board of 61.33 Teaching must issue a standard entrance license to a training 61.34 program licensee who successfully completes the program under 61.35 subdivision 2, successfully teaches in a classroom for one 61.36 complete school year, passes the Praxis II pedagogy test, and 62.1 receives a positive recommendation from the applicant's school 62.2 principal or other district or school administrator. 62.3 Subd. 7. [QUALIFIED TEACHER.] A person with a valid 62.4 eligibility license under subdivision 5 is a qualified teacher 62.5 under section 122A.16. 62.6 Subd. 8. [EVALUATION AND REPORT.] The Office of the 62.7 Legislative Auditor must evaluate the program under this section 62.8 and report its findings to the education policy and finance 62.9 committees in the legislature by February 1, 2008, and each 62.10 three years thereafter on February 1. 62.11 Sec. 32. Minnesota Statutes 2002, section 123B.09, 62.12 subdivision 8, is amended to read: 62.13 Subd. 8. [DUTIES.] The board must superintend and manage 62.14 the schools of the district; adopt rules for their organization, 62.15 government, and instruction; keep registers; and prescribe 62.16 textbooks and courses of study. The board may enter into an 62.17 agreement with a postsecondary institution for secondary or 62.18 postsecondary nonsectarian courses to be taught at a secondary 62.19 school, nonsectarian postsecondary institution, or another 62.20 location. The board must not enter into an agreement that 62.21 limits a district superintendent's duty to assign and reassign 62.22 teachers or administrators to the schools in which the teachers 62.23 will teach or the administrators will administer except that the 62.24 board may reserve assignment and reassignment rights for 62.25 purposes of entering into a school site decision making 62.26 agreement under section 123B.04. 62.27 [EFFECTIVE DATE.] This section is effective for agreements 62.28 entered into on or after July 1, 2004. 62.29 Sec. 33. Minnesota Statutes 2002, section 123B.143, 62.30 subdivision 1, is amended to read: 62.31 Subdivision 1. [CONTRACT; DUTIES.] All districts 62.32 maintaining a classified secondary school must employ a 62.33 superintendent who shall be an ex officio nonvoting member of 62.34 the school board. The authority for selection and employment of 62.35 a superintendent must be vested in the board in all cases. An 62.36 individual employed by a board as a superintendent shall have an 63.1 initial employment contract for a period of time no longer than 63.2 three years from the date of employment. Any subsequent 63.3 employment contract must not exceed a period of three years. A 63.4 board, at its discretion, may or may not renew an employment 63.5 contract. A board must not, by action or inaction, extend the 63.6 duration of an existing employment contract. Beginning 365 days 63.7 prior to the expiration date of an existing employment contract, 63.8 a board may negotiate and enter into a subsequent employment 63.9 contract to take effect upon the expiration of the existing 63.10 contract. A subsequent contract must be contingent upon the 63.11 employee completing the terms of an existing contract. If a 63.12 contract between a board and a superintendent is terminated 63.13 prior to the date specified in the contract, the board may not 63.14 enter into another superintendent contract with that same 63.15 individual that has a term that extends beyond the date 63.16 specified in the terminated contract. A board may terminate a 63.17 superintendent during the term of an employment contract for any 63.18 of the grounds specified in section 122A.40, subdivision 9 or 13. 63.19 A superintendent shall not rely upon an employment contract with 63.20 a board to assert any other continuing contract rights in the 63.21 position of superintendent under section 122A.40. 63.22 Notwithstanding the provisions of sections 122A.40, subdivision 63.23 10 or 11, 123A.32, 123A.75, or any other law to the contrary, no 63.24 individual shall have a right to employment as a superintendent 63.25 based on order of employment in any district. If two or more 63.26 districts enter into an agreement for the purchase or sharing of 63.27 the services of a superintendent, the contracting districts have 63.28 the absolute right to select one of the individuals employed to 63.29 serve as superintendent in one of the contracting districts and 63.30 no individual has a right to employment as the superintendent to 63.31 provide all or part of the services based on order of employment 63.32 in a contracting district. The superintendent of a district 63.33 shall perform the following: 63.34 (1) visit and supervise the schools in the district, report 63.35 and make recommendations about their condition when advisable or 63.36 on request by the board; 64.1 (2) recommend to the board employment and dismissal of 64.2 teachers; 64.3 (3) before the start of the school year, and at other times 64.4 as needed, assign teachers or administrators to schools to best 64.5 meet student and school needs as determined by the 64.6 superintendent; 64.7 (4) superintend school grading practices and examinations 64.8 for promotions; 64.9(4)(5) make reports required by the commissioner; 64.10(5) by January 10, submit an annual report to the64.11commissioner in a manner prescribed by the commissioner, in64.12consultation with school districts, identifying the expenditures64.13that the district requires to ensure an 80 percent student64.14passage rate on the basic standards test taken in the eighth64.15grade, identifying the highest student passage rate the district64.16expects it will be able to attain on the basic standards test by64.17grade 12, the amount of expenditures that the district requires64.18to attain the targeted student passage rate, and how much the64.19district is cross-subsidizing programs with special education,64.20basic skills, and general education revenue;and 64.21 (6) perform other duties prescribed by the board. 64.22 [EFFECTIVE DATE.] This section is effective the day 64.23 following final enactment. 64.24 Sec. 34. Minnesota Statutes 2002, section 123B.195, is 64.25 amended to read: 64.26 123B.195 [BOARD MEMBERS' RIGHT TO EMPLOYMENT.] 64.27 Notwithstanding section 471.88, subdivision 5, a school 64.28 board member may be newly employed or may continue to be 64.29 employed by a school district as an employee only if there is a 64.30 reasonable expectation at the beginning of the fiscal year or at 64.31 the time the contract is entered into or extended that the 64.32 amount to be earned by that officer under that contract or 64.33 employment relationship will not exceed$5,000$8,000 in that 64.34 fiscal year. Notwithstanding section 122A.40 or 122A.41 or 64.35 other law, if the officer does not receive majority approval to 64.36 be initially employed or to continue in employment at a meeting 65.1 at which all board members are present, that employment is 65.2 immediately terminated and that officer has no further rights to 65.3 employment while serving as a school board member in the 65.4 district. 65.5 [EFFECTIVE DATE.] This section is effective July 1, 2004. 65.6 Sec. 35. Minnesota Statutes 2002, section 123B.36, 65.7 subdivision 1, is amended to read: 65.8 Subdivision 1. [SCHOOL BOARDS MAY REQUIRE FEES.] (a) For 65.9 purposes of this subdivision, "home school" means a home school 65.10 as defined in sections 120A.22 and 120A.24 with five or fewer 65.11 students receiving instruction. 65.12 (b) A school board is authorized to require payment of fees 65.13 in the following areas: 65.14 (1) in any program where the resultant product, in excess 65.15 of minimum requirements and at the pupil's option, becomes the 65.16 personal property of the pupil; 65.17 (2) admission fees or charges for extra curricular 65.18 activities, where attendance is optional and where the admission 65.19 fees or charges a student must pay to attend or participate in 65.20 an extracurricular activity is the same for all students, 65.21 regardless of whether the student is enrolled in a public or a 65.22 home school; 65.23 (3) a security deposit for the return of materials, 65.24 supplies, or equipment; 65.25 (4) personal physical education and athletic equipment and 65.26 apparel, although any pupil may personally provide it if it 65.27 meets reasonable requirements and standards relating to health 65.28 and safety established by the board; 65.29 (5) items of personal use or products that a student has an 65.30 option to purchase such as student publications, class rings, 65.31 annuals, and graduation announcements; 65.32 (6) fees specifically permitted by any other statute, 65.33 including but not limited to section 171.05, subdivision 2; 65.34 provided (i) driver education fees do not exceed the actual cost 65.35 to the school and school district of providing driver education, 65.36 and (ii) the driver education courses are open to enrollment to 66.1 persons between the ages of 15 and 18 who reside or attend 66.2 school in the school district; 66.3 (7) field trips considered supplementary to a district 66.4 educational program; 66.5 (8) any authorized voluntary student health and accident 66.6 benefit plan; 66.7 (9) for the use of musical instruments owned or rented by 66.8 the district, a reasonable rental fee not to exceed either the 66.9 rental cost to the district or the annual depreciation plus the 66.10 actual annual maintenance cost for each instrument; 66.11 (10) transportation of pupils to and from extra curricular 66.12 activities conducted at locations other than school, where 66.13 attendance is optional, and transportation of charter school 66.14 students participating in extracurricular activities in their 66.15 resident district under section 123B.49, subdivision 4, 66.16 paragraph (a), which must be charged to the charter school; 66.17 (11) transportation to and from school of pupils living 66.18 within two miles from school and all other transportation 66.19 services not required by law. If a district charges fees for 66.20 transportation of pupils, it must establish guidelines for that 66.21 transportation to ensure that no pupil is denied transportation 66.22 solely because of inability to pay; 66.23 (12) motorcycle classroom education courses conducted 66.24 outside of regular school hours; provided the charge must not 66.25 exceed the actual cost of these courses to the school district; 66.26 (13) courses, programs, and other activities directed, 66.27 conducted, or supervised by school staff that are unrelated to 66.28 high school graduation, summer school classes under section 66.29 120B.122, or other necessary education-related goods and 66.30 services and are provided at times other than during the school 66.31 year; 66.32 (14) transportation to and from postsecondary institutions 66.33 for pupils enrolled under the postsecondary enrollment options 66.34 program under section 123B.88, subdivision 22. Fees collected 66.35 for this service must be reasonable and must be used to reduce 66.36 the cost of operating the route. Families who qualify for 67.1 mileage reimbursement under section 124D.09, subdivision 22, may 67.2 use their state mileage reimbursement to pay this fee. If no 67.3 fee is charged, districts must allocate costs based on the 67.4 number of pupils riding the route. 67.5 [EFFECTIVE DATE.] Paragraph (b), clause (13), is effective 67.6 the day following final enactment. 67.7 Sec. 36. Minnesota Statutes 2002, section 123B.49, 67.8 subdivision 4, is amended to read: 67.9 Subd. 4. [BOARD CONTROL OF EXTRACURRICULAR ACTIVITIES.] 67.10 (a) The board may take charge of and control all extracurricular 67.11 activities of the teachers and children of the public schools in 67.12 the district. Extracurricular activities means all direct and 67.13 personal services for pupils for their enjoyment that are 67.14 managed and operated under the guidance of an adult or staff 67.15 member. The board shall allow all resident pupils receiving 67.16 instruction in a home school as defined in section 123B.36, 67.17 subdivision 1, paragraph (a), and all resident pupils receiving 67.18 instruction in a charter school as defined in section 124D.10 to 67.19 be eligible to fully participate in extracurricular activities 67.20 on the same basis as public school students enrolled in the 67.21 district's schools. A charter school student must give the 67.22 enrolling charter school at least a 30-day notice of the 67.23 student's intent to participate in an extracurricular activity 67.24 in the resident district. A charter school student is not 67.25 eligible to participate in an extracurricular activity in the 67.26 resident district if that extracurricular activity is offered by 67.27 the enrolling charter school. Charter school students 67.28 participating in extracurricular activities must meet the 67.29 academic and student conduct requirements of the resident 67.30 district. The charter school must: 67.31 (1) collect the same information that a district collects 67.32 on a student's eligibility to participate in an extracurricular 67.33 activity; 67.34 (2) transmit that information to the district at least ten 67.35 days before a student begins to participate in the 67.36 extracurricular activity; and 68.1 (3) immediately transmit to the district any additional 68.2 information affecting the student's eligibility. 68.3 (b) Extracurricular activities have all of the following 68.4 characteristics: 68.5 (1) they are not offered for school credit nor required for 68.6 graduation; 68.7 (2) they are generally conducted outside school hours, or 68.8 if partly during school hours, at times agreed by the 68.9 participants, and approved by school authorities; 68.10 (3) the content of the activities is determined primarily 68.11 by the pupil participants under the guidance of a staff member 68.12 or other adult. 68.13 (c) If the board does not take charge of and control 68.14 extracurricular activities, these activities shall be 68.15 self-sustaining with all expenses, except direct salary costs 68.16 and indirect costs of the use of school facilities, met by dues, 68.17 admissions, or other student fund-raising events. The general 68.18 fund must reflect only those salaries directly related to and 68.19 readily identified with the activity and paid by public funds. 68.20 Other revenues and expenditures for extra curricular activities 68.21 must be recorded according to the "Manualof Instructionfor 68.22Uniform Student ActivitiesActivity Fund Accountingfor68.23Minnesota School Districts and Area Vocational-Technical68.24Colleges." Extracurricular activities not under board control 68.25 must have an annual financial audit and must also be audited 68.26 annually for compliance with this section. 68.27 (d) If the board takes charge of and controls 68.28 extracurricular activities, any or all costs of these activities 68.29 may be provided from school revenues and all revenues and 68.30 expenditures for these activities shall be recorded in the same 68.31 manner as other revenues and expenditures of the district. 68.32 (e) If the board takes charge of and controls 68.33 extracurricular activities, the teachers or pupils in the 68.34 district must not participate in such activity, nor shall the 68.35 school name or any allied name be used in connection therewith, 68.36 except by consent and direction of the board. 69.1 (f) School districts may charge charter schools their 69.2 proportional share of the direct and indirect costs of the 69.3 extracurricular activities that are not covered by student fees 69.4 under section 123B.36, subdivision 1. A district may charge 69.5 charter school students the same fees it charges enrolled 69.6 students to participate in an extracurricular activity. A 69.7 district is not required to provide transportation from the 69.8 charter school to the resident district to a charter school 69.9 student who participates in an extracurricular activity in the 69.10 resident district. 69.11 [EFFECTIVE DATE.] This section is effective for the 69.12 2004-2005 school year and later. 69.13 Sec. 37. Minnesota Statutes 2003 Supplement, section 69.14 124D.095, subdivision 8, is amended to read: 69.15 Subd. 8. [FINANCIAL ARRANGEMENTS.] (a) For a student 69.16 enrolled in an on-line learning course, the department must 69.17 calculate average daily membership and make payments according 69.18 to this subdivision. 69.19 (b) The initial on-line learning average daily membership 69.20 equals 1/12 for each semester course or a proportionate amount 69.21 for courses of different lengths. The adjusted on-line learning 69.22 average daily membership equals the initial on-line learning 69.23 average daily membership times .88. 69.24 (c) No on-line learning average daily membership shall be 69.25 generated if: (1) the student does not complete the on-line 69.26 learning course, or (2) the student is enrolled in on-line 69.27 learning provided by the enrolling district and the student 69.28 was either enrolled in a Minnesota public school for the school 69.29 year before the school year in which the student first enrolled 69.30 in on-line learning, or the student is enrolled in an 69.31 instructional program in which at least 40 percent of the total 69.32 instructional time takes place in the school's facilities. For 69.33 students enrolled in on-line learning according to clause (2), 69.34 the department shall calculate average daily membership 69.35 according to section 126C.05, subdivision 8. 69.36 (d) On-line learning average daily membership under this 70.1 subdivision for a student currently enrolled in a Minnesota 70.2 public school and who was enrolled in a Minnesota public school 70.3 for the school year before the school year in which the student 70.4 first enrolled in on-line learning shall be used only for 70.5 computing average daily membership according to section 126C.05, 70.6 subdivision 19, paragraph (a), clause(ii)(2), and for 70.7 computing on-line learning aid according to section 126C.24. 70.8 (e) On-line learning average daily membership under this 70.9 subdivision for students not included in paragraph (c) or (d) 70.10 shall be used only for computing average daily membership 70.11 according to section 126C.05, subdivision 19, paragraph (a), 70.12 clause(ii)(2), and for computing payments under paragraphs (f) 70.13 and (g). 70.14 (f) Subject to the limitations in this subdivision, the 70.15 department must pay an on-line learning provider an amount equal 70.16 to the product of the adjusted on-line learning average daily 70.17 membership for students under paragraph (e) times the student 70.18 grade level weighting under section 126C.05, subdivision 1, 70.19 times the formula allowance. 70.20 (g) The department must pay each on-line learning provider 70.21 100 percent of the amount in paragraph (f) within 45 days of 70.22 receiving final enrollment and course completion information 70.23 each quarter or semester. 70.24 [EFFECTIVE DATE.] This section is effective the day 70.25 following final enactment. 70.26 Sec. 38. Minnesota Statutes 2003 Supplement, section 70.27 124D.10, subdivision 3, is amended to read: 70.28 Subd. 3. [SPONSOR.] (a) A school board; intermediate 70.29 school district school board; education district organized under 70.30 sections 123A.15 to 123A.19; charitable organization under 70.31 section 501(c)(3) of the Internal Revenue Code of 1986 that is a 70.32 member of the Minnesota Council of Nonprofits or the Minnesota 70.33 Council on Foundations, registered with the attorney general's 70.34 office, and reports an end-of-year fund balance of at least 70.35 $2,000,000; Minnesota private college that grants two- or 70.36 four-year degrees and is registered with the Higher Education 71.1 Services Office under chapter 136A; community college, state 71.2 university, or technical college, governed by the Board of 71.3 Trustees of the Minnesota State Colleges and Universities; the 71.4 Board of the Perpich Center for Arts Education under chapter 71.5 129C; or the University of Minnesota may sponsor one or more 71.6 charter schools. 71.7 (b) A nonprofit corporation subject to chapter 317A, 71.8 described in section 317A.905, and exempt from federal income 71.9 tax under section 501(c)(6) of the Internal Revenue Code of 71.10 1986, may sponsor one or more charter schools if the charter 71.11 school has operated for at least three years under a different 71.12 sponsor and if the nonprofit corporation has existed for at 71.13 least 25 years. 71.14 (c) The commissioner of education may approve up to five 71.15 charitable organizations under section 501(c)(3) of the Internal 71.16 Revenue Code of 1986 that have as their primary activity the 71.17 sponsoring of charter schools. Proposals of the charitable 71.18 organizations to the commissioner must contain: 71.19 (1) the articles, bylaws, and initial board membership; 71.20 (2) the sources of financing for its operation; 71.21 (3) the areas of specialization of its sponsorship; and 71.22 (4) other information requested by the department. 71.23 Sponsors approved under this paragraph shall report annually to 71.24 the commissioner on the types of charter schools sponsored, 71.25 their effectiveness in promoting student achievement, the 71.26 development of alternative school governance structures, and 71.27 other information requested by the department. The commissioner 71.28 may terminate its authorization for a charitable organization to 71.29 sponsor a charter school under this paragraph if the charitable 71.30 organization demonstrates persistent financial mismanagement or 71.31 repeated violations of law. 71.32 Sec. 39. Minnesota Statutes 2003 Supplement, section 71.33 124D.10, subdivision 4, is amended to read: 71.34 Subd. 4. [FORMATION OF SCHOOL.] (a) A sponsor may 71.35 authorize one or more licensed teachers under section 122A.18, 71.36 subdivision 1, to operate a charter school subject to approval 72.1 by the commissioner. A board must vote on charter school 72.2 application for sponsorship no later than 90 days after 72.3 receiving the application. After 90 days, the applicant may 72.4 apply to the commissioner. If a board elects not to sponsor a 72.5 charter school, the applicant may appeal the board's decision to 72.6 the commissioner. The commissioner may elect to sponsor the 72.7 charter school or assist the applicant in finding an eligible 72.8 sponsor. The school must be organized and operated as a 72.9 cooperative under chapter 308A or nonprofit corporation under 72.10 chapter 317A and the provisions under the applicable chapter 72.11 shall apply to the school except as provided in this section. 72.12 Notwithstanding sections 465.717 and 465.719, a school district 72.13 may create a corporation for the purpose of creating a charter 72.14 school. 72.15 (b) Before the operators may form and operate a school, the 72.16 sponsor must file an affidavit with the commissioner stating its 72.17 intent to authorize a charter school. The affidavit must state 72.18 the terms and conditions under which the sponsor would authorize 72.19 a charter school. The commissioner must approve or disapprove 72.20 the sponsor's proposed authorization within 60 days of receipt 72.21 of the affidavit. Failure to obtain commissioner approval 72.22 precludes a sponsor from authorizing the charter school that was 72.23 the subject of the affidavit. 72.24 (c) The operators authorized to organize and operate a 72.25 school, before entering into a contract or other agreement for 72.26 professional or other services, goods, or facilities, must 72.27 incorporate as a cooperative under chapter 308A or as a 72.28 nonprofit corporation under chapter 317A and must establish a 72.29 board of directors composed of at least five members until a 72.30 timely election for members of the charter school board of 72.31 directors is held according to the school's articles and 72.32 bylaws. A charter school board of directors must be composed of 72.33 at least five members. Any staff members who are employed at 72.34 the school, including teachers providing instruction under a 72.35 contract with a cooperative, and all parents of children 72.36 enrolled in the school may participate in the election for 73.1 members of the school's board of directors. Licensed teachers 73.2 employed at the school, including teachers providing instruction 73.3 under a contract with a cooperative,mustmay be a majority of 73.4 the members of the board of directorsbefore the school73.5completes its third year of operation, unless the commissioner73.6waives the requirement for a majority of licensed teachers on73.7the board. Board of director meetings must comply with chapter 73.8 13D. 73.9 (d) The granting or renewal of a charter by a sponsoring 73.10 entity must not be conditioned upon the bargaining unit status 73.11 of the employees of the school. 73.12 (e) A sponsor may authorize the operators of a charter 73.13 school to expand the operation of the charter school to 73.14 additional sites or to add additional grades at the school 73.15 beyond those described in the sponsor's application as approved 73.16 by the commissioner only after submitting a supplemental 73.17 application to the commissioner in a form and manner prescribed 73.18 by the commissioner. The supplemental application must provide 73.19 evidence that: 73.20 (1) the expansion of the charter school is supported by 73.21 need and projected enrollment; 73.22 (2) the charter school is fiscally sound; 73.23 (3) the sponsor supports the expansion; and 73.24 (4) the building of the additional site meets all health 73.25 and safety requirements to be eligible for lease aid. 73.26 (f) The commissioner annually must provide timely financial 73.27 management training to newly elected members of a charter school 73.28 board of directors and ongoing training to other members of a 73.29 charter school board of directors. Training must address ways 73.30 to: 73.31 (1) proactively assess opportunities for a charter school 73.32 to maximize all available revenue sources; 73.33 (2) establish and maintain complete, auditable records for 73.34 the charter school; 73.35 (3) establish proper filing techniques; 73.36 (4) document formal actions of the charter school, 74.1 including meetings of the charter school board of directors; 74.2 (5) properly manage and retain charter school and student 74.3 records; 74.4 (6) comply with state and federal payroll record-keeping 74.5 requirements; and 74.6 (7) address other similar factors that facilitate 74.7 establishing and maintaining complete records on the charter 74.8 school's operations. 74.9 Sec. 40. Minnesota Statutes 2003 Supplement, section 74.10 124D.10, subdivision 8, is amended to read: 74.11 Subd. 8. [STATE AND LOCAL REQUIREMENTS.] (a) A charter 74.12 school shall meet all applicable state and local health and 74.13 safety requirements. 74.14 (b) A school sponsored by a school board may be located in 74.15 any district, unless the school board of the district of the 74.16 proposed location disapproves by written resolution. 74.17 (c) A charter school must be nonsectarian in its programs, 74.18 admission policies, employment practices, and all other 74.19 operations. A sponsor may not authorize a charter school or 74.20 program that is affiliated with a nonpublic sectarian school or 74.21 a religious institution. 74.22 (d) Charter schools must not be used as a method of 74.23 providing education or generating revenue for students who are 74.24 being home-schooled. 74.25 (e) The primary focus of a charter school must be to 74.26 provide a comprehensive program of instruction for at least one 74.27 grade or age group from five through 18 years of age. 74.28 Instruction may be provided to people younger than five years 74.29 and older than 18 years of age. 74.30 (f) A charter school may not charge tuition. 74.31 (g) A charter school is subject to and must comply with 74.32 chapter 363A and section 121A.04. 74.33 (h) A charter school is subject to and must comply with the 74.34 Pupil Fair Dismissal Act, sections 121A.40 to 121A.56, and the 74.35 Minnesota Public School Fee Law, sections 123B.34 to 123B.39. 74.36 (i) A charter school is subject to the same financial 75.1 audits, audit procedures, and audit requirements as a district. 75.2 Audits must be conducted in compliance with generally accepted 75.3 governmental auditing standards, the Federal Single Audit Act, 75.4 if applicable, and section 6.65. A charter school is subject to 75.5 and must comply with sections 15.054; 118A.01; 118A.02; 118A.03; 75.6 118A.04; 118A.05; 118A.06; 123B.52, subdivision 5; 471.38; 75.7 471.391; 471.392; 471.425; 471.87; 471.88, subdivisions 1, 2, 3, 75.8 4, 5, 6, 12, 13, and 15; 471.881; and 471.89. The audit must 75.9 comply with the requirements of sections 123B.75 to 123B.83, 75.10 except to the extent deviations are necessary because of the 75.11 program at the school. Deviations must be approved by the 75.12 commissioner. The Department of Education, state auditor, or 75.13 legislative auditor may conduct financial, program, or 75.14 compliance audits. A charter school determined to be in 75.15 statutory operating debt under sections 123B.81 to 123B.83 must 75.16 submit a plan under section 123B.81, subdivision 4. 75.17 (j) A charter school is a district for the purposes of tort 75.18 liability under chapter 466. 75.19 (k) A charter school must comply with sections 13.32; 75.20 120A.22, subdivision 7; 121A.75; and 260B.171, subdivisions 3 75.21 and 5. 75.22 (l) A charter school is subject to the Pledge of Allegiance 75.23 requirement under section 121A.11, subdivision 3. 75.24 (m) A charter school is subject to sections 123B.36, 75.25 subdivision 1, clause (10), and 123B.49, subdivision 4, 75.26 paragraph (a), when its students participate in extracurricular 75.27 activities in their resident district. 75.28 [EFFECTIVE DATE.] This section is effective for the 75.29 2004-2005 school year and later. 75.30 Sec. 41. Minnesota Statutes 2003 Supplement, section 75.31 124D.11, subdivision 9, is amended to read: 75.32 Subd. 9. [PAYMENT OF AIDS TO CHARTER SCHOOLS.] (a) 75.33 Notwithstanding section 127A.45, subdivision 3, aid payments for 75.34 the current fiscal year to a charter school not in its first 75.35 year of operation shall be of an equal amount on each of the 23 75.36 payment dates. A charter school in its first year of operation 76.1 shall receive, on its first payment date, ten percent of its 76.2 cumulative amount guaranteed for the year and 22 payments of an 76.3 equal amount thereafter the sum of which shall be 90 percent of 76.4 the cumulative amount guaranteed. 76.5 (b) Notwithstanding paragraph (a), for a charter school 76.6 ceasing operation prior to the end of a school year, 80 percent 76.7 of the amount due for the school year may be paid to the school 76.8 after audit of prior fiscal year and current fiscal year pupil 76.9 counts. 76.10 (c) Notwithstanding section 127A.45, subdivision 3, and 76.11 paragraph (a), 80 percent of the start-up cost aid under 76.12 subdivision 8 shall be paid within 45 days after the first day 76.13 of student attendance for that school year. 76.14 (d) In order to receive state aid payments under this 76.15 subdivision, a charter school in its first three years of 76.16 operation must submit a school calendar in the form and manner 76.17 requested by the department and a quarterly report to the 76.18 Department of Education. The report must list each student by 76.19 grade, show the student's start and end dates, if any, with the 76.20 charter school, and for any student participating in a learning 76.21 year program, the report must list the hours and times of 76.22 learning year activities. The report must be submitted not more 76.23 than two weeks after the end of the calendar quarter to the 76.24 department. The department must develop a Web-based reporting 76.25 form for charter schools to use when submitting enrollment 76.26 reports. A charter school in its fourth and subsequent year of 76.27 operation must submit a school calendar and enrollment 76.28 information to the department in the form and manner requested 76.29 by the department. 76.30 Sec. 42. Minnesota Statutes 2003 Supplement, section 76.31 124D.385, subdivision 2, is amended to read: 76.32 Subd. 2. [MEMBERSHIP.] (a) The commission consists of 76.331826 voting members. Voting members shall include the 76.34 commissioner of education, a representative of the Children's76.35Cabinet elected by the members of the Children's Cabinet, and76.36the executive director of the Higher Education Services Office. 77.1 (b) The governor shall appoint15nine additional voting 77.2 members. Eight of the voting members appointed by the governor77.3shallthat include a representative ofpublic or nonprofit77.4 organizations experienced in youthemploymenteducation 77.5 development and training, organizations promoting adult 77.6 service or service learning and volunteerism, community-based 77.7 service agencies or organizations, local public or private 77.8 sector labor unions, local governments, business, a national 77.9 service program,andIndian tribes, and an individual between 77.10 the ages of 16 and 25 who is a participant or supervisor in a 77.11 program. The remainingseven16 voting members appointed by the 77.12 governor shall includean individualindividuals with expertise 77.13 in theeducational, training, and development needs of youth,77.14particularly disadvantaged youth; a youth or young adult who is77.15a participant in a higher education-based service-learning77.16program; a disabled individual representing persons with77.17disabilities; a youth who is out-of-school or disadvantaged; an77.18educator of primary or secondary students; an educator from a77.19higher education institution; and an individual between the ages77.20of 16 and 25 who is a participant or supervisor in a youth77.21service programmanagement and operations of a nonprofit 77.22 organization, including individuals with expertise in public 77.23 relations, finance, and development. 77.24 (c) The governor shall appoint up to five ex officio 77.25 nonvoting members fromamong the following agencies or77.26organizations: the Departments of Economic Security, Natural77.27Resources, Human Services, Health, Corrections, Agriculture,77.28Public Safety, Finance, and Labor and Industry, the Housing77.29Finance Agency, and Minnesota Technology, Incappropriate state 77.30 agencies. A representative of the Corporation for National and 77.31 Community Service shall also serve as an ex officio nonvoting 77.32 member. 77.33 (d) Voting and ex officio nonvoting members may appoint 77.34 designees to act on their behalf. The number of voting members 77.35 who are state employees shall not exceed 25 percent. 77.36 (e) The governor shall ensure that, to the extent possible, 78.1 the membership of the commission is balanced according to 78.2 geography, race, ethnicity, age, and gender. The speaker of the 78.3 house and the majority leader of the senate shall each appoint 78.4 two legislators to be nonvoting members of the commission. 78.5 Sec. 43. Minnesota Statutes 2003 Supplement, section 78.6 124D.42, subdivision 6, is amended to read: 78.7 Subd. 6. [PROGRAM TRAINING.](a)The commission must, 78.8 within available resources, ensure an opportunity for each78.9participant to have three weeks of training in a residential78.10setting. If offered, each training session must: 78.11 (1) orient eachparticipantgrantee organization in the 78.12 nature, philosophy, and purpose of the program; 78.13 (2) build an ethic of community service through general 78.14 community service training; and 78.15 (3) provide additional training as it determines necessary, 78.16 which may include training in evaluating early literacy skills 78.17 and teaching reading to preschool children through the St. Croix 78.18 River Education District under Laws 2001, First Special Session 78.19 chapter 6, article 2, section 70, to assist local Head Start 78.20 organizations in establishing and evaluating Head Start programs 78.21 for developing children's early literacy skills. 78.22(b) Each grantee organization shall also train participants78.23in skills relevant to the community service opportunity.78.24 Sec. 44. Minnesota Statutes 2002, section 124D.59, as 78.25 amended by Laws 2003, First Special Session chapter 9, article 78.26 1, section 13, is amended to read: 78.27 124D.59 [DEFINITIONS.] 78.28 Subdivision 1. [GENERALLY.] For purposes of sections 78.29 124D.58 to 124D.65, the terms defined in this section shall have 78.30 the meanings given them. 78.31 Subd. 1a. [PRIMARY LANGUAGE.] "Primary language" means a 78.32 language other than English which is the language normally used 78.33 by the child or the language which is spoken in the child's home 78.34 environment. A pupil's primary language as declared by a parent 78.35 or guardian shall be deemed to be a language other than English 78.36 if: 79.1 (1) the pupil first spoke a language other than English; 79.2 (2) the primary language spoken in the home of the pupil is 79.3 not English; or 79.4 (3) the language most often spoken by the pupil is not 79.5 English. 79.6 The primary language of each student, regardless of 79.7 proficiency status, must be determined with a home language 79.8 questionnaire the first time that student enrolls in the 79.9 district. 79.10 Subd. 1b. [LANGUAGE MINORITY STUDENT.] "Language minority 79.11 student" means a pupil in kindergarten through grade 12 who has 79.12 a primary language other than English. 79.13 Subd. 2. [PUPIL OF LIMITEDENGLISHPROFICIENCYLANGUAGE 79.14 LEARNER.] (a) "Pupil of limitedEnglishproficiencylanguage 79.15 learner" means a pupilin kindergarten through grade 12who 79.16 meets the following requirements: 79.17 (1) the pupil, as declared by a parent or guardian first79.18learned a language other than English, comes from a home where79.19the language usually spoken is other than English, or usually79.20speaks a language other than Englishis a language minority 79.21 student as defined in subdivision 1b; and 79.22 (2) the pupil is determined by developmentally appropriate 79.23 measures, which might include observations, teacher judgment, 79.24 parent recommendations, or developmentally appropriate 79.25 assessment instruments, to lack the necessary English skills to 79.26 participate fully in classes taught in English. 79.27 (b) Notwithstanding paragraph (a), a pupil in grades 4 79.28 through 12 who was enrolled in a Minnesota public school on the 79.29 dates during the previous school year when a commissioner 79.30 provided assessment that measures the pupil's emerging academic 79.31 English was administered, shall not be counted asa pupil of79.32limitedan Englishproficiencylanguage learner in calculating 79.33limitedEnglishproficiencylanguage learner pupil units under 79.34 section 126C.05, subdivision 17, and shall not generate 79.35 statelimitedEnglishproficiencylanguage learner aid under 79.36 section 124D.65, subdivision 5, unless the pupil scored below 80.1 the state cutoff score on an assessment measuring emerging 80.2 academic English provided by the commissioner during the 80.3 previous school year. 80.4 (c) Notwithstanding paragraphs (a) and (b), a pupil in 80.5 kindergarten through grade 12 shall not be counted asa pupil of80.6limitedan Englishproficiencylanguage learner in calculating 80.7limitedEnglishproficiencylanguage learner pupil units under 80.8 section 126C.05, subdivision 17, and shall not generate 80.9 statelimitedEnglishproficiencylanguage learner aid under 80.10 section 124D.65, subdivision 5, if: 80.11 (1) the pupil is not enrolled during the current fiscal 80.12 year in an educational program forpupils of limitedEnglish 80.13proficiencylanguage learners in accordance with sections 80.14 124D.58 to 124D.64; or 80.15 (2) the pupil has generated five or more years of average 80.16 daily membership in Minnesota public schools since July 1, 1996. 80.17 Subd. 2a. [TRANSITIONAL LANGUAGE LEARNER.] "Transitional 80.18 language learner" means a pupil who meets the following 80.19 requirements: 80.20 (1) the pupil is a language minority student; 80.21 (2) the pupil has received scores indicating attainment of 80.22 English proficiency on a test of English language acquisition 80.23 approved by the commissioner; and 80.24 (3) the pupil has not scored in the proficient level on the 80.25 state reading assessment aligned with the state academic 80.26 standards three times, or for as many times as the state reading 80.27 assessment is given during the pupil's last three academic years 80.28 in a Minnesota school. 80.29 Subd. 2b. [FLUENT LANGUAGE LEARNER.] "Fluent language 80.30 learner" means a pupil in kindergarten through grade 12 who 80.31 meets the following requirements: 80.32 (1) the pupil is a language minority student; 80.33 (2) the pupil has received scores indicating attainment of 80.34 English proficiency on a test of English language acquisition 80.35 approved by the commissioner; and 80.36 (3) the pupil has scored in the proficient level on the 81.1 state reading assessment aligned with the state academic 81.2 standards three times, or for as many times as the state reading 81.3 assessment is given during the pupil's last three academic years 81.4 in a Minnesota school. 81.5 Subd. 3. [ESSENTIAL INSTRUCTIONAL PERSONNEL.] "Essential 81.6 instructional personnel" means the following: 81.7 (1) a teacher licensed by the state Board of Teaching to 81.8 teach bilingual education or English as a second language; and 81.9 (2) a teacher with an exemption from a teaching license 81.10 requirement pursuant to section 124D.62 who is employed in a 81.11 school district's English as a second language or bilingual 81.12 education program;. 81.13(3) any teacher as defined in section 122A.15 who holds a81.14valid license from the state Board of Teaching, if the district81.15assures the department that the teacher will obtain the81.16preservice and in-service training the department considers81.17necessary to enable the teacher to provide appropriate service81.18to pupils of limited English proficiency.81.19 Subd. 4. [ENGLISH AS A SECOND LANGUAGE PROGRAM.] "English 81.20 as a second language program" means a program for the 81.21 instruction ofpupils of limitedEnglishproficiencylanguage 81.22 learners in the following English language skills: reading, 81.23 writing, listening and speaking. 81.24 Subd. 5. [BILINGUAL EDUCATION PROGRAM.] "Bilingual 81.25 education program" means an educational program in which 81.26 instruction is given in both English and the primary language of 81.27 thepupil of limitedEnglishproficiencylanguage learner to the 81.28 extent necessary to allow the pupil to progress effectively 81.29 through the educational system and to attain the basic skills of 81.30 reading, writing, listening, and speaking in the English 81.31 language so that the pupil will be able to perform ordinary 81.32 classwork successfully in English. 81.33Subd. 6. [PRIMARY LANGUAGE.] "Primary language" means a81.34language other than English which is the language normally used81.35by the child or the language which is spoken in the child's home81.36environment.82.1 Subd. 7. [PARENT.] "Parent" includes a child's legal 82.2 guardian. 82.3 Subd. 8. [EDUCATIONAL PROGRAM FORPUPILS OF LIMITED82.4 ENGLISHPROFICIENCYLANGUAGE LEARNERS.] "Educational program for 82.5pupils of limitedEnglishproficiencylanguage learners" means 82.6 an English as a second language program, bilingual education 82.7 program, or both an English as a second language and a bilingual 82.8 education program. 82.9 Sec. 45. Minnesota Statutes 2002, section 124D.61, is 82.10 amended to read: 82.11 124D.61 [GENERAL REQUIREMENTS FOR PROGRAMS.] 82.12 (a) A districtwhich receives aid pursuant to section82.13124D.65that enrolls one or more English language learners must 82.14 comply with thefollowingprogram requirements:under paragraphs 82.15 (b) and (c). 82.16 (b) A district must implement an educational program for 82.17 English language learners if one or more English language 82.18 learners are enrolled in the district. 82.19 (c) An educational program for English language learners 82.20 must meet the following requirements: 82.21 (1) entrance and exit criteria must be documented by the 82.22 district, applied uniformly to English language learners, and 82.23 made available to parents and other stakeholders upon request; 82.24 (2) the curriculum of the educational program for English 82.25 language learners must be coordinated with the mainstream 82.26 curriculum in which the English language learners are involved 82.27 and must be consistent with standards set forth by the 82.28 commissioner; 82.29 (3) the amount of service offered English language learners 82.30 through an educational program specifically for English language 82.31 learners must be designed to meet varying student needs across 82.32 English proficiency levels; 82.33(1)(4) to the extent possible, the district must avoid 82.34 isolatingchildren of limited English proficiencyEnglish 82.35 language learners for a substantial part of the school day; and 82.36(2)(5) in predominantly nonverbal subjects, such as art, 83.1 music, and physical education,pupils of limited English83.2proficiencyEnglish language learners shall be permitted to 83.3 participate fully and on an equal basis with their 83.4 contemporaries in public school classes provided for these 83.5 subjects. To the extent possible, the district must assure to 83.6 pupils enrolled ina program for limited English proficient83.7studentsan educational program for English language learners an 83.8 equal and meaningful opportunity to participate fully with other 83.9 pupils in all extracurricular activities. 83.10 Sec. 46. Minnesota Statutes 2003 Supplement, section 83.11 124D.86, subdivision 3, is amended to read: 83.12 Subd. 3. [INTEGRATION REVENUE.] Integration revenue equals 83.13 the sum of $67 in state aid times the adjusted pupil units for 83.14 the school plus the following levy amounts: 83.15 (1) for Independent School District No. 709, Duluth,$20683.16 $61.80 times the adjusted pupil units for the school year; 83.17 (2) for Independent School District No. 625, St. Paul,$44583.18 $133.50 times the adjusted pupil units for the school year; 83.19 (3) for Special School District No. 1, Minneapolis, the sum 83.20 of$445$168.50 times the adjusted pupil units for the school 83.21 yearand an additional $35 times the adjusted pupil units for83.22the school year that is provided entirely through a local levy; 83.23 (4) for a district not listed in clause (1), (2), or (3), 83.24 that must implement a plan under Minnesota Rules, parts 83.25 3535.0100 to 3535.0180, where the district's enrollment of 83.26 protected students, as defined under Minnesota Rules, part 83.27 3535.0110, exceeds 15 percent, the lesser of (i) the actual cost 83.28 of implementing the plan during the fiscal year minus the aid 83.29 received under subdivision 6, or (ii)$129$37.50 times the 83.30 adjusted pupil units for the school year; 83.31 (5) for a district not listed in clause (1), (2), (3), or 83.32 (4), that is required to implement a plan according to the 83.33 requirements of Minnesota Rules, parts 3535.0100 to 3535.0180, 83.34 the lesser of 83.35 (i) the actual cost of implementing the plan during the 83.36 fiscal year minus the aid received under subdivision 6, or 84.1 (ii)$92$28.50 times the adjusted pupil units for the 84.2 school year. 84.3 Any money received by districts in clauses (1) to (3) which 84.4 exceeds the amount received in fiscal year 2000 shall be subject 84.5 to the budget requirements in subdivision 1a; and 84.6 (6) for a member district of a multidistrict integration 84.7 collaborative that files a plan with the commissioner, but is 84.8 not contiguous to a racially isolated district, integration 84.9 revenue equals the amount defined in clause (5). 84.10 [EFFECTIVE DATE.] This section is effective for revenue for 84.11 fiscal year 2005. 84.12 Sec. 47. Minnesota Statutes 2003 Supplement, section 84.13 124D.86, subdivision 4, is amended to read: 84.14 Subd. 4. [INTEGRATION LEVY.] A district may levyanthe 84.15 amountequal to 37 percent for fiscal year 2003, 23 percent for84.16fiscal year 2004, and 30 percent for fiscal year 2005 and84.17thereafter of the district's integration revenue as defined84.18 specified in subdivision31. 84.19 [EFFECTIVE DATE.] This section is effective for revenue for 84.20 fiscal year 2005. 84.21 Sec. 48. Minnesota Statutes 2002, section 125A.22, is 84.22 amended to read: 84.23 125A.22 [COMMUNITY TRANSITION INTERAGENCY COMMITTEE.] 84.24 A district, group of districts, or special education 84.25 cooperative, in cooperation with the county or counties in which 84.26 the district or cooperative is located, must establish a 84.27 community transition interagency committee for youth with 84.28 disabilities, beginning at grade 9 or age equivalent, and their 84.29 families. Members of the committee must consist of 84.30 representatives from special education, vocational and regular 84.31 education, community education, postsecondary education and 84.32 training institutions, the mental health community, adults with 84.33 disabilities who have received transition services if such 84.34 persons are available, parents of youth with disabilities, local 84.35 business or industry, rehabilitation services, county social 84.36 services, health agencies, and additional public or private 85.1 adult service providers as appropriate. The committee must 85.2 elect a chair and must meet regularly. The committee must: 85.3 (1) identify current services, programs, and funding 85.4 sources provided within the community for secondary and 85.5 postsecondary aged youth with disabilities and their families; 85.6 (2) facilitate the development of multiagency teams to 85.7 address present and future transition needs of individual 85.8 students on their individual education plans; 85.9 (3) develop a community plan to include mission, goals, and 85.10 objectives, and an implementation plan to assure that transition 85.11 needs of individuals with disabilities are met; 85.12 (4) recommend changes or improvements in the community 85.13 system of transition services; 85.14 (5) exchange agency information such as appropriate data, 85.15 effectiveness studies, special projects, exemplary programs, and 85.16 creative funding of programs; and 85.17 (6) following procedures determined by the commissioner, 85.18 prepare a yearly summary assessing the progress of transition 85.19 services in the community including follow-up of individuals 85.20 with disabilities who were provided transition services to 85.21 determine postschool outcomes. The summary must be disseminated 85.22 to all adult services agencies involved in the planning and to 85.23 the commissioner by October 1 of each year. 85.24 [EFFECTIVE DATE.] This section is effective the day 85.25 following final enactment. 85.26 Sec. 49. Minnesota Statutes 2003 Supplement, section 85.27 128C.05, subdivision 1a, is amended to read: 85.28 Subd. 1a. [SUPERVISED COMPETITIVE HIGH SCHOOL DIVING.] 85.29 Notwithstanding Minnesota Rules, part 4717.3750, any pool built 85.30 before January 1, 1987, that was used for a high school diving 85.31 program during the 2000-2001 school year may be used for 85.32 supervised competitive high school divingunless a pool that85.33meets the requirements of Minnesota Rules, part 4717.3750, is85.34located within the school district. Schools and school 85.35 districts are strongly encouraged to use a pool for supervised 85.36 competitive high school diving that meets the requirements of 86.1 Minnesota Rules, part 4717.3750. A school or district using a 86.2 pool for supervised competitive high school diving that does not 86.3 meet the requirements of the rule must provide appropriate 86.4 notice to parents and participants. 86.5 [EFFECTIVE DATE.] This section is effective the day 86.6 following final enactment. 86.7 Sec. 50. Minnesota Statutes 2002, section 171.04, 86.8 subdivision 1, is amended to read: 86.9 Subdivision 1. [PERSONS NOT ELIGIBLE.] The department 86.10 shall not issue a driver's license: 86.11 (1) to any person under 18 years unless: 86.12 (i) the applicant is 16 or 17 years of age and has a 86.13 previously issued valid license from another state or country or 86.14 the applicant has, for the 12 consecutive months preceding 86.15 application, held a provisional license and during that time has 86.16 incurred (A) no conviction for a violation of section 169A.20, 86.17 169A.33, 169A.35, or sections 169A.50 to 169A.53, (B) no 86.18 conviction for a crash-related moving violation, and (C) not 86.19 more than one conviction for a moving violation that is not 86.20 crash related. "Moving violation" means a violation of a 86.21 traffic regulation but does not include a parking violation, 86.22 vehicle equipment violation, or warning citation; 86.23 (ii) the application for a license is approved by (A) 86.24 either parent when both reside in the same household as the 86.25 minor applicant or, if otherwise, then (B) the parent or spouse 86.26 of the parent having custody or, in the event there is no court 86.27 order for custody, then (C) the parent or spouse of the parent 86.28 with whom the minor is living or, if subitems (A) to (C) do not 86.29 apply, then (D) the guardian having custody of the minor or, in 86.30 the event a person under the age of 18 has no living father, 86.31 mother, or guardian, or is married or otherwise legally 86.32 emancipated, then (E) the minor's adult spouse, adult close 86.33 family member, or adult employer; provided, that the approval 86.34 required by this item contains a verification of the age of the 86.35 applicant and the identity of the parent, guardian, adult 86.36 spouse, adult close family member, or adult employer;and87.1 (iii) the applicant presents a certification by the person 87.2 who approves the application under item (ii), stating that the 87.3 applicant has driven a motor vehicle accompanied by and under 87.4 supervision of a licensed driver at least 21 years of age for at 87.5 least ten hours during the period of provisional licensure; and 87.6 (iv) the applicant presents a certificate under section 87.7 120A.23 either verifying school attendance or waiving the 87.8 attendance requirement; 87.9 (2) to any person who is 18 years of age or younger, unless 87.10 the person has applied for, been issued, and possessed the 87.11 appropriate instruction permit for a minimum of six months, and, 87.12 with respect to a person under 18 years of age, a provisional 87.13 license for a minimum of 12 months; 87.14 (3) to any person who is 19 years of age or older, unless 87.15 that person has applied for, been issued, and possessed the 87.16 appropriate instruction permit for a minimum of three months; 87.17 (4) to any person whose license has been suspended during 87.18 the period of suspension except that a suspended license may be 87.19 reinstated during the period of suspension upon the licensee 87.20 furnishing proof of financial responsibility in the same manner 87.21 as provided in the Minnesota No-Fault Automobile Insurance Act; 87.22 (5) to any person whose license has been revoked except 87.23 upon furnishing proof of financial responsibility in the same 87.24 manner as provided in the Minnesota No-Fault Automobile 87.25 Insurance Act and if otherwise qualified; 87.26 (6) to any drug-dependent person, as defined in section 87.27 254A.02, subdivision 5; 87.28 (7) to any person who has been adjudged legally incompetent 87.29 by reason of mental illness, mental deficiency, or inebriation, 87.30 and has not been restored to capacity, unless the department is 87.31 satisfied that the person is competent to operate a motor 87.32 vehicle with safety to persons or property; 87.33 (8) to any person who is required by this chapter to take a 87.34 vision, knowledge, or road examination, unless the person has 87.35 successfully passed the examination. An applicant who fails 87.36 four road tests must complete a minimum of six hours of 88.1 behind-the-wheel instruction with an approved instructor before 88.2 taking the road test again; 88.3 (9) to any person who is required under the Minnesota 88.4 No-Fault Automobile Insurance Act to deposit proof of financial 88.5 responsibility and who has not deposited the proof; 88.6 (10) to any person when the commissioner has good cause to 88.7 believe that the operation of a motor vehicle on the highways by 88.8 the person would be inimical to public safety or welfare; 88.9 (11) to any person when, in the opinion of the 88.10 commissioner, the person is afflicted with or suffering from a 88.11 physical or mental disability or disease that will affect the 88.12 person in a manner as to prevent the person from exercising 88.13 reasonable and ordinary control over a motor vehicle while 88.14 operating it upon the highways; 88.15 (12) to a person who is unable to read and understand 88.16 official signs regulating, warning, and directing traffic; 88.17 (13) to a child for whom a court has ordered denial of 88.18 driving privileges under section 260C.201, subdivision 1, or 88.19 260B.235, subdivision 5, until the period of denial is 88.20 completed; or 88.21 (14) to any person whose license has been canceled, during 88.22 the period of cancellation. 88.23 [EFFECTIVE DATE.] This section is effective September 1, 88.24 2004, and applies to all persons under age 18 who possess or 88.25 apply for a driver's instruction permit or provisional license 88.26 on or after that date. 88.27 Sec. 51. Minnesota Statutes 2002, section 171.05, 88.28 subdivision 2, is amended to read: 88.29 Subd. 2. [PERSON LESS THAN 18 YEARS OF AGE.] (a) 88.30 Notwithstanding any provision in subdivision 1 to the contrary, 88.31 the department may issue an instruction permit to an applicant 88.32 who is 15, 16, or 17 years of age and who: 88.33 (1) has completed a course of driver education in another 88.34 state, has a previously issued valid license from another state, 88.35 or is enrolled in either: 88.36 (i) a public, private, or commercial driver education 89.1 program that is approved by the commissioner of public safety 89.2 and that includes classroom and behind-the-wheel training; or 89.3 (ii) an approved behind-the-wheel driver education program 89.4 when the student is receiving full-time instruction in a home 89.5 school within the meaning of sections 120A.22 and 120A.24, the 89.6 student is working toward a home-school diploma, the student's 89.7 status as a home-school student has been certified by the 89.8 superintendent of the school district in which the student 89.9 resides, and the student is taking home-classroom driver 89.10 training with classroom materials approved by the commissioner 89.11 of public safety; 89.12 (2) has completed the classroom phase of instruction in the 89.13 driver education program; 89.14 (3) has passed a test of the applicant's eyesight; 89.15 (4) has passed a department-administered test of the 89.16 applicant's knowledge of traffic laws; 89.17 (5) has completed the required application, which must be 89.18 approved by (i) either parent when both reside in the same 89.19 household as the minor applicant or, if otherwise, then (ii) the 89.20 parent or spouse of the parent having custody or, in the event 89.21 there is no court order for custody, then (iii) the parent or 89.22 spouse of the parent with whom the minor is living or, if items 89.23 (i) to (iii) do not apply, then (iv) the guardian having custody 89.24 of the minor or, in the event a person under the age of 18 has 89.25 no living father, mother, or guardian, or is married or 89.26 otherwise legally emancipated, then (v) the applicant's adult 89.27 spouse, adult close family member, or adult employer; provided, 89.28 that the approval required by this clause contains a 89.29 verification of the age of the applicant and the identity of the 89.30 parent, guardian, adult spouse, adult close family member, or 89.31 adult employer;and89.32 (6) presents a certificate under section 120A.23 either 89.33 verifying school attendance or waiving the attendance 89.34 requirement; and 89.35 (7) has paid the fee required in section 171.06, 89.36 subdivision 2. 90.1 (b) The instruction permit is valid for one year from the 90.2 date of application and may be renewed upon payment of a fee 90.3 equal to the fee for issuance of an instruction permit under 90.4 section 171.06, subdivision 2. 90.5 [EFFECTIVE DATE.] This section is effective September 1, 90.6 2004, and applies to all persons under age 18 who possess or 90.7 apply for a driver's instruction permit on or after that date. 90.8 Sec. 52. Minnesota Statutes 2002, section 171.05, 90.9 subdivision 2b, is amended to read: 90.10 Subd. 2b. [INSTRUCTION PERMIT USE BY PERSON UNDER AGE 18.] 90.11 (a) This subdivision applies to persons who have applied for and 90.12 received an instruction permit under subdivision 2. 90.13 (b) The permit holder may, with the permit in possession, 90.14 operate a motor vehicle, but must be accompanied by and be under 90.15 the supervision of a certified driver education instructor, the 90.16 permit holder's parent or guardian, or another licensed driver 90.17 age 21 or older. The supervisor must occupy the seat beside the 90.18 permit holder. 90.19 (c) The permit holder may operate a motor vehicle only when 90.20 every occupant under the age of 18 has a seat belt or child 90.21 passenger restraint system properly fastened. A person who 90.22 violates this paragraph is subject to a fine of $25. A peace 90.23 officer may not issue a citation for a violation of this 90.24 paragraph unless the officer lawfully stopped or detained the 90.25 driver of the motor vehicle for a moving violation as defined in 90.26 section 171.04, subdivision 1. The commissioner shall not 90.27 record a violation of this paragraph on a person's driving 90.28 record. 90.29 (d) The permit holder must maintain a driving record free 90.30 of convictions for moving violations, as defined in section 90.31 171.04, subdivision 1, and free of convictions for violation of 90.32 section 169A.20, 169A.33, 169A.35, or sections 169A.50 to 90.33 169A.53. If the permit holder drives a motor vehicle in 90.34 violation of the law, the commissioner shall suspend, cancel, or 90.35 revoke the permit in accordance with the statutory section 90.36 violated. 91.1 (e) The permit holder must comply with the school 91.2 attendance requirement under section 171.056, except when the 91.3 board waives the attendance requirement under section 120A.23. 91.4 If the permit holder does not attend school as required, the 91.5 commissioner shall cancel the permit according to section 91.6 171.056. 91.7 [EFFECTIVE DATE.] This section is effective September 1, 91.8 2004, and applies to all persons under age 18 who possess or 91.9 apply for a driver's instruction permit on or after that date. 91.10 Sec. 53. Minnesota Statutes 2002, section 171.05, 91.11 subdivision 3, is amended to read: 91.12 Subd. 3. [MOTORIZED BICYCLE.] Notwithstanding any 91.13 provision in subdivision 1 to the contrary, the department, upon 91.14 application and payment of the fee prescribed in section 171.02, 91.15 subdivision 3, may issue a motorized bicycle instruction permit 91.16 to an applicant who is 15 years of ageand, who has successfully 91.17 completed the written portion of the examination prescribed by 91.18 the commissioner, and who presents a certificate under section 91.19 171.056 verifying school attendance or waiving the attendance 91.20 requirement. The holder of this instruction permit who has the 91.21 permit in possession may operate a motorized bicycle within one 91.22 mile of the holder's residence for the purpose of practicing to 91.23 take the operator portion of the examination prescribed by the 91.24 commissioner. 91.25 [EFFECTIVE DATE.] This section is effective September 1, 91.26 2004, and applies to all persons under age 18 who possess or 91.27 apply for a motorized bicycle instruction permit on or after 91.28 that date. 91.29 Sec. 54. [171.056] [SCHOOL ATTENDANCE REQUIRED FOR 91.30 DRIVER'S INSTRUCTION PERMIT, MOTORIZED BICYCLE PERMIT, AND 91.31 PROVISIONAL LICENSE.] 91.32 Subdivision 1. [DEFINITIONS.] (a) For the purposes of this 91.33 section, the terms defined in this subdivision have the meanings 91.34 given them. 91.35 (b) "Administrator" means a school principal or an 91.36 equivalent administrator of a state-approved alternative program 92.1 or a charter school. 92.2 (c) "Board" means a school board of a school district, a 92.3 board of a state-approved alternative program, or a charter 92.4 school board of directors. 92.5 (d) "School" means a district public school, a 92.6 state-approved alternative program, or a charter school. 92.7 (e) "Superintendent" means a district superintendent or an 92.8 equivalent administrator of a state-approved alternative program 92.9 or a charter school. 92.10 Subd. 2. [ISSUING OR RENEWING A DRIVER'S INSTRUCTION 92.11 PERMIT, MOTORIZED BICYCLE PERMIT, OR PROVISIONAL LICENSE.] (a) 92.12 Notwithstanding any law to the contrary, except when a board 92.13 waives the attendance requirement under section 120A.23, a 92.14 person under age 18 seeking a new driver's instruction permit, 92.15 motorized bicycle permit, or provisional license or seeking to 92.16 renew a permit must attend school. The person satisfies the 92.17 school attendance requirement by: 92.18 (1) receiving a high school diploma or general education 92.19 development certificate (GED); 92.20 (2) withdrawing from school under section 120A.22, 92.21 subdivision 8; or 92.22 (3) enrolling and attending school, including a charter 92.23 school, in good standing under section 120A.22, subdivision 4. 92.24 (b) A person under age 18 who applies for a motorized 92.25 bicycle permit, instruction permit, or provisional license must 92.26 submit the necessary information to the department certifying 92.27 that the person meets the requirement for obtaining or keeping a 92.28 permit or license under paragraph (a). 92.29 (c) The administrator at the person's school must certify 92.30 that the person attended school for the current and preceding 92.31 school year, to the extent records are available. The 92.32 department shall make a form available for the administrator to 92.33 complete that includes the person's name, date of birth, and 92.34 address. A parent or guardian must give the administrator prior 92.35 written consent to release to the department any nonpublic data 92.36 about the student and any data not designated as directory 93.1 information. The school must notify parents and guardians in 93.2 the school's student attendance policy that their written 93.3 consent is needed to transfer such data about the student to the 93.4 department. 93.5 Subd. 3. [CANCELING A PERMIT OR LICENSE.] (a) 93.6 Notwithstanding any law to the contrary, the department shall 93.7 cancel the motorized bicycle permit, instruction permit, or 93.8 provisional license of a person under age 18 when the 93.9 administrator notifies the department that the person: 93.10 (1) is truant under section 260C.007, subdivision 19; 93.11 (2) has not withdrawn under section 120A.22, subdivision 8; 93.12 and 93.13 (3) has not received a high school diploma or general 93.14 education development certificate (GED). 93.15 The department shall notify the person that the person's 93.16 permit or license is canceled under section 171.14 beginning 93.17 five days after the notice is issued. 93.18 The school must inform the person and the person's parent 93.19 or legal guardian by first class mail or other reasonable means 93.20 that the person's motorized bicycle permit, instruction permit, 93.21 or provisional license may be canceled and that the person may 93.22 request a hardship waiver from the school under subdivision 4 to 93.23 keep the license or permit. 93.24 The school must obtain the prior written consent of the 93.25 parent or guardian to release the data to the department. 93.26 (b) Notwithstanding section 171.14, or other law to the 93.27 contrary, the department shall cancel the permit or license of a 93.28 person under age 18 until one of the following conditions is 93.29 first satisfied: 93.30 (1) the person is 18 years old; or 93.31 (2) an administrator notifies the department to reinstate 93.32 the person's permit or license because: 93.33 (i) the person attended school for 120 days after the date 93.34 the department issued its cancellation notice; or 93.35 (ii) the administrator, at the board's direction, dismisses 93.36 the person's expulsion under the Pupil Fair Dismissal Act, 94.1 sections 121A.40 to 121A.56. 94.2 (c) When a person satisfies a requirement for reinstating a 94.3 license or permit under paragraph (b), a school shall send an 94.4 electronic notice to the department to rescind the cancellation 94.5 of the person's license or permit after obtaining the parent's 94.6 written consent to release to the department nonpublic data 94.7 about the student and data not designated as directory 94.8 information. 94.9 Subd. 4. [HARDSHIP WAIVER.] A person whose permit or 94.10 provisional license may be canceled under this section may ask 94.11 the school for a hardship waiver hearing. The superintendent 94.12 must conduct the hearing within seven days after receiving the 94.13 request. The superintendent must appoint an advisory committee 94.14 to hear evidence and recommend in writing whether or not to 94.15 cancel the person's permit or provisional license. The advisory 94.16 committee must, within two days of holding the hearing, submit 94.17 its recommendation, evidence, and other related documents to the 94.18 superintendent. An administrator, the person whose permit or 94.19 license may be canceled, and the person's parent or guardian may 94.20 present evidence. The superintendent must electronically notify 94.21 the department of the decision within seven days after the 94.22 hearing is held. The school must obtain the prior written 94.23 consent of the parent or guardian to release the data to the 94.24 department. The superintendent's decision is final and cannot 94.25 be appealed. 94.26 [EFFECTIVE DATE.] This section is effective September 1, 94.27 2004, and applies to all persons under age 18 years who possess 94.28 or apply for a motorized bicycle permit, driver's instruction 94.29 permit, or provisional license on or after that date. 94.30 Sec. 55. Minnesota Statutes 2002, section 171.19, is 94.31 amended to read: 94.32 171.19 [PETITION FOR LICENSE REINSTATEMENT.] 94.33 Any person whose driver's license has been refused, 94.34 revoked, suspended, canceled, or disqualified by the 94.35 commissioner, except where the license is revoked or 94.36 disqualified under section 169A.52 or 171.186 or canceled under 95.1 section 171.056, may file a petition for a hearing in the matter 95.2 in the district court in the county wherein such person shall 95.3 reside and, in the case of a nonresident, in the district court 95.4 in any county, and such court is hereby vested with 95.5 jurisdiction, and it shall be its duty, to set the matter for 95.6 hearing upon 15 days' written notice to the commissioner, and 95.7 thereupon to take testimony and examine into the facts of the 95.8 case to determine whether the petitioner is entitled to a 95.9 license or is subject to revocation, suspension, cancellation, 95.10 disqualification, or refusal of license, and shall render 95.11 judgment accordingly. The petition for hearing must either be 95.12 filed within 180 days of the effective date of the order of 95.13 revocation, suspension, cancellation, disqualification, or 95.14 refusal to license or be filed before expiration of the 95.15 withdrawal period, whichever occurs first. The petition shall 95.16 be heard by the court without a jury and may be heard in or out 95.17 of term. The commissioner may appear in person, or by agents or 95.18 representatives, and may present evidence upon the hearing by 95.19 affidavit personally, by agents, or by representatives. The 95.20 petitioner may present evidence by affidavit, except that the 95.21 petitioner must be present in person at such hearing for the 95.22 purpose of cross-examination. In the event the department shall 95.23 be sustained in these proceedings, the petitioner shall have no 95.24 further right to make further petition to any court for the 95.25 purpose of obtaining a driver's license until after the 95.26 expiration of one year after the date of such hearing. 95.27 [EFFECTIVE DATE.] This section is effective September 1, 95.28 2004. 95.29 Sec. 56. Minnesota Statutes 2002, section 260A.03, is 95.30 amended to read: 95.31 260A.03 [NOTICE TO PARENT OR GUARDIAN WHEN CHILD IS A 95.32 CONTINUING TRUANT.] 95.33 Upon a child's initial classification as a continuing 95.34 truant, the school attendance officer or other designated school 95.35 official shall notify the child's parent or legal guardian, by 95.36 first-class mail or other reasonable means, of the following: 96.1 (1) that the child is truant; 96.2 (2) that the parent or guardian should notify the school if 96.3 there is a valid excuse for the child's absences; 96.4 (3) that the parent or guardian is obligated to compel the 96.5 attendance of the child at school pursuant to section 120A.22 96.6 and parents or guardians who fail to meet this obligation may be 96.7 subject to prosecution under section 120A.34; 96.8 (4) that this notification serves as the notification 96.9 required by section 120A.34; 96.10 (5) that alternative educational programs and services may 96.11 be available in the district; 96.12 (6) that the parent or guardian has the right to meet with 96.13 appropriate school personnel to discuss solutions to the child's 96.14 truancy; 96.15 (7) that the school, after obtaining the informed consent 96.16 of the child's parent or guardian to release the data to the 96.17 Department of Public Safety, must notify the department to 96.18 cancel the child's license or permit under section 171.056 when 96.19 the child is truant under section 260C.007, subdivision 19, 96.20 unless the school waived the attendance requirement under 96.21 section 120A.23; 96.22 (8) that if the child continues to be truant, the parent 96.23 and child may be subject to juvenile court proceedings under 96.24 chapter 260C; 96.25(8)(9) that if the child is subject to juvenile court 96.26 proceedings, the child may be subject to suspension, 96.27 restriction, or delay of the child's driving privilege pursuant 96.28 to section 260C.201; and 96.29(9)(10) that it is recommended that the parent or guardian 96.30 accompany the child to school and attend classes with the child 96.31 for one day. 96.32 [EFFECTIVE DATE.] This section is effective September 1, 96.33 2004. 96.34 Sec. 57. Laws 2003, First Special Session chapter 9, 96.35 article 2, section 55, subdivision 5, is amended to read: 96.36 Subd. 5. [INTEGRATION AID.] For integration aid under 97.1 Minnesota Statutes, section 124D.86, subdivision 5: 97.2$56,869,000$55,911,000 ..... 2004 97.3$56,092,000$33,306,000 97.4 ..... 2005 97.5 The 2004 appropriation includes $8,428,000 for 2003 and 97.6$48,441,000$47,483,000 for 2004. 97.7 The 2005 appropriation includes$12,110,000$11,870,000 for 97.8 2004 and$43,982,000$21,436,000 for 2005. 97.9 Sec. 58. Laws 2003, First Special Session chapter 9, 97.10 article 2, section 55, subdivision 15, is amended to read: 97.11 Subd. 15. [BEST PRACTICES SEMINARS.] For best practices 97.12 seminars and other professional development capacity building 97.13 activities that assure proficiency in teaching and 97.14 implementation of graduation rule standards: 97.15 $1,000,000 ..... 2004 97.16$1,000,000$250,000 ..... 2005 97.17 $250,000 per year is for a grant to A Chance to Grow/New 97.18 Visions for the Minnesota learning resource center's 97.19 comprehensive training program for education professionals 97.20 charged with helping children acquire basic reading and math 97.21 skills. 97.22 The base budget for this program is $200,000 for fiscal 97.23 year 2006 and $100,000 for fiscal year 2007. 97.24 Sec. 59. Laws 2003, First Special Session chapter 9, 97.25 article 2, section 55, subdivision 16, is amended to read: 97.26 Subd. 16. [ALTERNATIVE TEACHER COMPENSATION.] For 97.27 alternative teacher compensation established under Minnesota 97.28 Statutes, sections 122A.413 to 122A.415: 97.29 $3,700,000 ..... 2004 97.30 $3,700,000 ..... 2005 97.31 If the appropriations under this subdivision are 97.32 insufficient to fund all program participants, a participant may 97.33 receive less than the maximum per pupil amount available under 97.34 Minnesota Statutes, section 122A.415, subdivision 1. A 97.35 qualifying district or site receiving alternative teacher 97.36 compensation funding under this subdivision may use the funding 98.1 it receives to leverage additional funds from a national program 98.2 for enhancing teacher professionalism. 98.3 Any balance in the first year does not cancel but is 98.4 available in the second year. 98.5 [EFFECTIVE DATE.] This section is effective the day 98.6 following final enactment. 98.7 Sec. 60. Laws 2003, First Special Session chapter 9, 98.8 article 2, section 55, subdivision 17, is amended to read: 98.9 Subd. 17. [EXAMINATION FEES; TEACHER TRAINING AND SUPPORT 98.10 PROGRAMS.] (a) For students' advanced placement and 98.11 international baccalaureate examination fees under Minnesota 98.12 Statutes, section 120B.13, subdivision 3, and the training and 98.13 related costs for teachers and other interested educators under 98.14 Minnesota Statutes, section 120B.13, subdivision 1: 98.15 $ 778,000 ..... 2004 98.16 $ 778,000 ..... 2005 98.17 (b) The advanced placement program shall receive 75 percent 98.18 of the appropriation each year and the international 98.19 baccalaureate program shall receive 25 percent of the 98.20 appropriation each year. The department, in consultation with 98.21 representatives of the advanced placement and international 98.22 baccalaureate programs selected by the advanced placement 98.23 advisory council and IBMN, respectively, shall determine the 98.24 amounts of the expenditures each year for examination fees and 98.25 training and support programs for each program. 98.26 (c)Notwithstanding Minnesota Statutes, section 120B.13,98.27subdivision 1, $375,000 each year is for teachers to attend98.28subject matter summer training programs and follow-up support98.29workshops approved by the advanced placement or international98.30baccalaureate programs. The amount of the subsidy for each98.31teacher attending an advanced placement or international98.32baccalaureate summer training program or workshop shall be the98.33same. The commissioner shall determine the payment process and98.34the amount of the subsidy.98.35(d)The commissioner shall pay all examination fees for all 98.36 students of low-income families under Minnesota Statutes, 99.1 section 120B.13, subdivision 3, and to the extent of available 99.2 appropriations shall also pay examination fees for students 99.3 sitting for an advanced placement examination, international 99.4 baccalaureate examination, or both. 99.5 Any balance in the first year does not cancel but is 99.6 available in the second year. 99.7 [EFFECTIVE DATE.] This section is effective the day 99.8 following final enactment for revenue for fiscal year 2004. 99.9 Sec. 61. Laws 2003, First Special Session chapter 9, 99.10 article 2, section 55, subdivision 19, is amended to read: 99.11 Subd. 19. [YOUTH WORKS PROGRAM.] For funding youth works 99.12 programs under Minnesota Statutes, sections 124D.37 to 124D.45: 99.13 $900,000 ..... 2004 99.14 $900,000 ..... 2005 99.15 (a) $150,000 per year is for training in evaluating early 99.16 literacy skills and teaching reading to preschool children under 99.17 Minnesota Statutes, section 124D.42, subdivision 6, paragraph 99.18 (a), clause (3). 99.19 (b) A grantee organization may provide health and child 99.20 care coverage to the dependents of each participant enrolled in 99.21 a full-time youth works program to the extent such coverage is 99.22 not otherwise available. 2004 or fiscal year 2005 shall be no 99.23 less than its fiscal year 2003 allocation. 99.24 (c) The budget base for this program is $900,000 in fiscal 99.25 year 2006 and $500,000 in fiscal year 2007. 99.26 Sec. 62. Laws 2003, First Special Session chapter 9, 99.27 article 2, section 55, subdivision 21, as amended by Laws 2003, 99.28 First Special Session chapter 23, section 16, is amended to read: 99.29 Subd. 21. [ON-LINE LEARNING.] For on-line learning aid 99.30 under Minnesota Statutes, section 124D.095: 99.31 $1,000,000 ..... 2004 99.32$1,250,000$2,750,000 ..... 2005 99.33 Sec. 63. [RULEMAKING AUTHORITY.] 99.34 Subdivision 1. [SUPPLEMENTAL EDUCATION SERVICE PROVIDERS.] 99.35 The commissioner of education shall adopt rules under Minnesota 99.36 Statutes, chapter 14, making permanent the supplemental 100.1 education service provider exempt rules authorized under Laws 100.2 2003, chapter 129, article 2, section 3. 100.3 Subd. 2. [STATEWIDE TESTING.] The commissioner of 100.4 education shall adopt rules under Minnesota Statutes, chapter 100.5 14, for the administration of statewide accountability tests 100.6 under Minnesota Statutes, section 120B.30, to ensure security 100.7 and integrity of the tests and test results. 100.8 [EFFECTIVE DATE.] This section is effective the day 100.9 following final enactment. 100.10 Sec. 64. [SCHOOL INNOVATION AND COOPERATIVE PLANNING 100.11 GRANTS.] 100.12 Subdivision 1. [GRANT PROGRAMS.] The commissioner of 100.13 education shall award planning grants to service cooperatives, 100.14 two or more school districts cooperating for a particular 100.15 purpose, or cooperating charter schools that work together to 100.16 improve the delivery and cost-effectiveness of instructional and 100.17 noninstructional programs and services and increase funds 100.18 available for instruction-related expenditures. Service 100.19 cooperatives, cooperating districts, or cooperating charter 100.20 schools may coordinate or merge any noninstructional program or 100.21 service of a participating district or charter school. The 100.22 service cooperatives, cooperating districts, or cooperating 100.23 charter schools may use the grant to determine: 100.24 (1) the district or charter school that is the primary 100.25 service provider; 100.26 (2) the districts or charter schools that provide 100.27 supplemental support; 100.28 (3) collaborative purchasing arrangements for goods and 100.29 services; and 100.30 (4) how the districts or charter schools may coordinate or 100.31 merge school functions such as payroll, human resources, food 100.32 services, facility maintenance, community education programming, 100.33 and student transportation. 100.34 Service cooperatives, cooperating districts, or cooperating 100.35 charter schools must apply for a grant in a form and manner 100.36 determined by the commissioner. 101.1 Subd. 2. [REPORT.] The service cooperatives, cooperating 101.2 districts, and charter schools must report by August 1 to the 101.3 commissioner on coordinating noninstructional programs and 101.4 services and any estimates of cost savings realized by providing 101.5 coordinated or merged programs and services during the preceding 101.6 school year. 101.7 Sec. 65. [PILOT PROJECT RECOGNIZING TEACHERS' CRITICAL 101.8 ROLE IN IMPROVING STUDENT ACHIEVEMENT AND SCHOOL PERFORMANCE.] 101.9 Subdivision 1. [PROJECT GOAL DEFINED; APPLICATION PROCESS 101.10 ESTABLISHED; RECOGNITION CONFERRED.] (a) A five-year pilot 101.11 project beginning in the 2005-2006 school year is established to 101.12 recognize teachers' critical role in improving student 101.13 achievement and school performance in those district elementary 101.14 schools and charter elementary schools that have consistently 101.15 failed to demonstrate adequate yearly progress under Minnesota 101.16 Statutes, section 120B.35, and where at least 28 percent of the 101.17 student population is eligible to receive a free or 101.18 reduced-price meal in the school year in which an application 101.19 under this section is submitted to the education commissioner. 101.20 In order to measure teachers' critical role in improving student 101.21 achievement and school performance, elementary schools that 101.22 participate in the project, among other measures, must use 101.23 assessments of students' academic achievement, to the extent 101.24 available, to make longitudinal comparisons of each student's 101.25 academic growth over time. Districts, on behalf of a district 101.26 elementary school, and charter elementary schools may apply to 101.27 the commissioner to participate in the project in the form and 101.28 manner the commissioner prescribes. A plan described under 101.29 paragraph (c) must accompany the district or charter elementary 101.30 school application. The commissioner must consider selecting 101.31 project participants from urban, suburban, and rural areas 101.32 throughout the state and must select no more than three 101.33 elementary schools to participate. 101.34 (b) "Principal" for purposes of this section means the 101.35 school principal or other person having administrative control 101.36 of the school. The principal may receive compensation under 102.1 this subdivision in addition to the principal's current salary, 102.2 consistent with the plan submitted to the commissioner under 102.3 paragraph (c). 102.4 (c) To participate in the project, the teachers and 102.5 principal at an elementary school, in consultation with the 102.6 district where applicable, and subject to the commissioner's 102.7 approval, must develop a plan consistent with subdivision 2 or 102.8 3, as appropriate, that: 102.9 (1) delegates specific powers and duties, allows the 102.10 principal to decide how to allocate financial and personnel 102.11 resources and from whom to purchase goods and services, and 102.12 allocates revenue to the school, where applicable; 102.13 (2) includes a design for implementing a value-added 102.14 assessment model that reliably estimates teacher and school 102.15 effects on students' academic achievement over time for 102.16 different classroom settings, for team teaching arrangements, 102.17 and for other teaching circumstances, and provides staff 102.18 development opportunities that address the impact of the 102.19 value-added assessment model on curriculum, instruction and 102.20 student progress, teacher performance measures, classroom 102.21 assessment practices, and students' critical thinking skills and 102.22 their ability to complete cognitively complex work; 102.23 (3) records student attendance; and 102.24 (4) parent involvement activities to enhance students' 102.25 educational development, consistent with Minnesota Statutes, 102.26 section 124D.895. 102.27 The plan the elementary school implements must accommodate 102.28 diverse data from various test sources and must use each 102.29 student's test data across grades and subjects even when the 102.30 data are incomplete. The data on teachers generated under the 102.31 value-added assessment model are private data under Minnesota 102.32 Statutes, section 13.02, subdivision 12. 102.33 (d) The principal, using the data acquired under paragraph 102.34 (c), clause (2), to measure improvements in student achievement 102.35 and school performance, must identify and recognize those 102.36 classroom teachers who have successfully fostered educational 103.1 improvement and are therefore eligible to receive compensation 103.2 under this subdivision in addition to their current salary. The 103.3 principal must determine the amount of added compensation each 103.4 eligible teacher receives and the payment schedule, consistent 103.5 with the plan submitted to the commissioner under paragraph 103.6 (c). A teacher's total annual salary under this section must 103.7 not exceed $100,000. 103.8 Subd. 2. [PARTICIPATING CHARTER ELEMENTARY SCHOOLS.] All 103.9 provisions of Minnesota Statutes, sections 124D.10 and 124D.11, 103.10 apply to a charter elementary school participating in the 103.11 project under this section, consistent with the plan developed 103.12 and approved under subdivision 1, paragraph (c), except that, 103.13 for purposes of this section: 103.14 (1) a charter elementary school contract must be entered 103.15 into or extended for a five-year term beginning in the first 103.16 school year of participation unless the school board or the 103.17 commissioner terminates the school's participation; and 103.18 (2) a charter elementary school must report information 103.19 required by the commissioner under this section and consistent 103.20 with Minnesota Statutes, chapter 13. 103.21 The charter school sponsor or the commissioner may terminate the 103.22 school's participation during the project term for any ground 103.23 listed in Minnesota Statutes, section 124D.10, subdivision 23, 103.24 paragraph (b). 103.25 Subd. 3. [PARTICIPATING DISTRICT ELEMENTARY SCHOOLS.] (a) 103.26 The provisions of Minnesota Statutes, section 124D.10, governing 103.27 charter elementary schools apply to a participating district 103.28 elementary school during the term of the pilot project to the 103.29 extent described in this subdivision, and consistent with the 103.30 plan developed and approved under subdivision 1, paragraph (c). 103.31 The words "participating school" must be substituted for 103.32 "charter school," the words "school district" must be 103.33 substituted for "sponsor," and the word "plan" must be 103.34 substituted for "contract" under Minnesota Statutes, section 103.35 124D.10. 103.36 (b) Minnesota Statutes, section 124D.10, subdivisions 1, 2, 104.1 2a, 3, 4 except as provided in paragraph (c), 6a, 9, 10, 15, 16 104.2 except as provided in paragraph (i), 17, 18, 19, 21, 23a, and 104.3 24, do not apply to a participating school under this section. 104.4 (c) Under Minnesota Statutes, section 124D.10, subdivision 104.5 4, governing the formation of a school, a participating school 104.6 must select a board of directors composed of at least five 104.7 members, one of whom must be the principal. 104.8 (d) Under Minnesota Statutes, section 124D.10, subdivision 104.9 5, governing the conversion of existing schools, a participating 104.10 school must initiate its participation in the project at the 104.11 beginning of a school year and must agree to continue 104.12 participating for five school years unless the school board or 104.13 the commissioner terminates the school's participation under 104.14 paragraph (k). 104.15 (e) Under Minnesota Statutes, section 124D.10, subdivisions 104.16 6 and 8, governing contracts and state and local requirements, 104.17 the plan of a participating school developed and approved under 104.18 subdivision 1, paragraph (c), must establish how the school will 104.19 be managed and administered and how it will comply with: 104.20 (1) state human rights laws under Minnesota Statutes, 104.21 chapter 363; 104.22 (2) requirements for gender equity in athletic programs 104.23 under Minnesota Statutes, section 121A.04; 104.24 (3) the Pupil Fair Dismissal Act under Minnesota Statutes, 104.25 sections 121A.40 to 121A.56; 104.26 (4) the public school fee law under Minnesota Statutes, 104.27 sections 123B.34 to 123B.39; 104.28 (5) audit-related requirements and procedures under 104.29 Minnesota Statutes, section 124D.10, subdivision 8, paragraph 104.30 (i); 104.31 (6) data practices laws governing access to student records 104.32 under Minnesota Statutes, section 124D.10, subdivision 8, 104.33 paragraph (k); 104.34 (7) the requirement to recite the pledge of allegiance 104.35 under Minnesota Statutes, section 124D.10, subdivision 8, 104.36 paragraph (l); 105.1 (8) academic standards, assessments, and accountability 105.2 measures under Minnesota Statutes, sections 120B.02 to 120B.04 105.3 and 120B.30 to 120B.36; and 105.4 (9) the length of the school year. 105.5 (f) Under Minnesota Statutes, section 124D.10, subdivision 105.6 7, governing a school's public status, a participating school is 105.7 a public school and is part of the district in which it is 105.8 located. Except as provided in this section, a participating 105.9 school, after consulting with the district superintendent, may 105.10 elect to be exempt from any statute or rule applicable to a 105.11 school, a school board, or a school district. 105.12 (g) Under Minnesota Statutes, section 124D.10, subdivision 105.13 11, governing employment and other operating matters, the plan 105.14 of a participating school developed and approved under 105.15 subdivision 1, paragraph (c), must enable the principal to 105.16 determine who is hired into licensed and nonlicensed positions 105.17 in the school. 105.18 (h) Under Minnesota Statutes, section 124D.10, subdivision 105.19 14, governing annual public reports, a participating school must 105.20 report at least annually to the school board of the district the 105.21 information required by the district, and the district's school 105.22 board must report at least annually to the commissioner the 105.23 information required by the commissioner. The reports are 105.24 public data, consistent with Minnesota Statutes, chapter 13. 105.25 (i) Under Minnesota Statutes, section 124D.10, subdivision 105.26 16, governing transportation, the school district in which the 105.27 participating school is located must provide transportation 105.28 within the district to the students enrolled in the 105.29 participating school. 105.30 (j) Minnesota Statutes, section 124D.10, subdivision 20, 105.31 governing leave to teach in a charter elementary school, applies 105.32 to a participating school except the provision allowing a school 105.33 board to extend a leave of absence does not apply. 105.34 (k) Under Minnesota Statutes, section 124D.10, subdivision 105.35 23, governing causes for nonrenewal or termination of a charter 105.36 elementary school contract, the plan developed and approved 106.1 under subdivision 1, paragraph (c), must be for a five-year 106.2 term. A school district may unilaterally terminate a school's 106.3 participation during the project term for any ground listed in 106.4 Minnesota Statutes, section 124D.10, subdivision 23, paragraph 106.5 (b); provisions governing the nonrenewal of a charter elementary 106.6 school contract do not apply to a participating school. If a 106.7 district terminates the participation of a school, the school 106.8 reverts to the status it held immediately preceding its 106.9 participation in this project. The commissioner may terminate 106.10 the participation of a participating school if the school or the 106.11 school district in which the school is located has a history of 106.12 financial mismanagement, repeated violations of law, or for 106.13 other good cause. 106.14 (l) Under Minnesota Statutes, section 124D.10, subdivision 106.15 25, governing the extent of specific legal authority, the school 106.16 district in which the school is located, and not the school, 106.17 must obtain the requisite insurance on the school's behalf. 106.18 Subd. 4. [ADDITIONAL PARTICIPATING SCHOOLS.] The 106.19 commissioner may seek and select another applicant to 106.20 participate in this project, consistent with this section, if a 106.21 participating school is terminated in the 2005-2006 or 2006-2007 106.22 school year. 106.23 Subd. 5. [REPORTS.] The commissioner, by each March 1 106.24 during the term of the pilot project, must submit progress 106.25 reports to the legislative committees having jurisdiction over 106.26 education policy and finance and must prepare a final written 106.27 report to submit to the legislature by January 1, 2011. The 106.28 reports, among other things, must use data acquired from a 106.29 value-added assessment model to analyze teachers' critical role 106.30 in improving student achievement and school performance and 106.31 reliably estimate teacher and school effects on students' 106.32 academic achievement over time. 106.33 Subd. 6. [COMMISSIONER'S ROLE.] The commissioner, in 106.34 consultation with a school district or charter school sponsor, 106.35 and at the request of a participating school, must provide 106.36 technical support to the participating school. 107.1 Subd. 7. [APPROPRIATIONS BASE.] The base appropriation for 107.2 this program is $500,000 for fiscal year 2006 and $500,000 for 107.3 fiscal year 2007. 107.4 [EFFECTIVE DATE.] This section is effective the day 107.5 following final enactment and applies to the 2005-2006 through 107.6 2009-2010 school years. 107.7 Sec. 66. [MODEL POLICY.] 107.8 The education commissioner, in consultation with 107.9 representatives of local school boards, school administrators, 107.10 teachers, parents, students, and other individuals and 107.11 organizations the commissioner determines are appropriate, must 107.12 develop and transmit to school boards a model bullying policy, 107.13 consistent with Minnesota Statutes, section 121A.032. The 107.14 policy must encourage school boards to provide information, 107.15 training, programs, and other initiatives consistent with the 107.16 model policy. 107.17 [EFFECTIVE DATE.] This section is effective the day 107.18 following final enactment. 107.19 Sec. 67. [REVISOR'S INSTRUCTIONS.] 107.20 (a) In Minnesota Statutes and Minnesota Rules, the revisor 107.21 of statutes shall change the terms and phrases "pupil of limited 107.22 English proficiency," "limited English proficiency," "individual 107.23 students whose first language is not English," "the limited 107.24 English speaking children," "those for whom English is a second 107.25 language," "persons for whom English is a second language," "of 107.26 pupils known to speak English as a second language," and similar 107.27 terms and phrases to "English language learners" where 107.28 appropriate. 107.29 (b) In the next edition of Minnesota Statutes, the revisor 107.30 of statutes shall change the headnote of Minnesota Statutes, 107.31 section 122A.18, subdivision 2b, from "READING SPECIALIST." to 107.32 "TEACHER OF READING LICENSURE ENDORSEMENT." 107.33 Sec. 68. [APPROPRIATION.] 107.34 Subdivision 1. [DEPARTMENT OF EDUCATION.] The sums 107.35 indicated in this section are appropriated from the general fund 107.36 to the Department of Education for the fiscal years designated. 108.1 Subd. 2. [VALUE-ADDED ASSESSMENT PROGRAM.] For value-added 108.2 assessment under Minnesota Statutes, section 120B.362. 108.3 $250,000 ..... 2005 108.4 The base budget for this program is $1,600,000 for fiscal 108.5 year 2006 and fiscal year 2007. 108.6 Subd. 3. [SCHOOL INNOVATION AND COOPERATIVE PLANNING 108.7 GRANTS.] For planning grants to service cooperatives, 108.8 cooperating districts, or cooperating charter schools to improve 108.9 the delivery and cost-effectiveness of instructional and 108.10 noninstructional programs and services: 108.11 $ 500,000 ..... 2005 108.12 This is a onetime appropriation. 108.13 Subd. 4. [SCHOLARS OF DISTINCTION.] For the scholars of 108.14 distinction program: 108.15 $ 210,000 ..... 2005 108.16 This is a onetime appropriation. 108.17 [EFFECTIVE DATE.] Subdivision 4 is effective June 30, 2005. 108.18 Sec. 69. [SUNSET.] 108.19 The amendments to Minnesota Statutes, section 122A.16, 108.20 paragraphs (b), (c), and (d), are repealed effective June 30, 108.21 2007. 108.22 Sec. 70. [REPEALER.] 108.23 (a) Minnesota Statutes 2002, sections 124D.41; 124D.42, 108.24 subdivisions 1, 2, 4, 5, and 7; and 124D.43, are repealed. 108.25 (b) Minnesota Statutes 2003 Supplement, section 124D.42, 108.26 subdivision 3, is repealed. 108.27 (c) Minnesota Statutes 2003 Supplement, section 124D.86, 108.28 subdivision 5, is repealed for revenue for fiscal year 2005. 108.29 ARTICLE 3 108.30 SPECIAL PROGRAMS 108.31 Section 1. Minnesota Statutes 2003 Supplement, section 108.32 124D.095, subdivision 4, is amended to read: 108.33 Subd. 4. [ON-LINE LEARNING PARAMETERS.] (a) An on-line 108.34 learning student must receive academic credit for completing the 108.35 requirements of an on-line learning course or program. 108.36 Secondary credits granted to an on-line learning student must be 109.1 counted toward the graduation and credit requirements of the 109.2 enrolling district. The enrolling district must apply the same 109.3 graduation requirements to all students, including on-line 109.4 learning students, and must continue to provide nonacademic 109.5 services to on-line learning students. If a student completes 109.6 an on-line learning course or program that meets or exceeds a 109.7 graduation standard or grade progression requirement at the 109.8 enrolling district, that standard or requirement is met. The 109.9 enrolling district must use the same criteria for accepting 109.10 on-line learning credits or courses as it does for accepting 109.11 credits or courses for transfer students under section 124D.03, 109.12 subdivision 9. The enrolling district may reduce the teacher 109.13 contact time of an on-line learning student in proportion to the 109.14 number of on-line learning courses the student takes from an 109.15 on-line learning provider that is not the enrolling district. 109.16 (b) An on-line learning student may: 109.17 (1) enroll during a single school year in a maximum of 12 109.18 semester-long courses or their equivalent delivered by an 109.19 on-line learning provider or the enrolling district; 109.20 (2) complete course work at a grade level that is different 109.21 from the student's current grade level; and 109.22 (3) enroll in additional courses with the on-line learning 109.23 provider under a separate agreement that includes terms for 109.24 payment of any tuition or course fees. 109.25 (c) A student with a disability may enroll in an on-line 109.26 learning course or programif the student's IEP team determines109.27that on-line learning is appropriate education for the student. 109.28 The student's IEP must then be adapted to reflect the on-line 109.29 learning option. 109.30 (d) An on-line learning student has the same access to the 109.31 computer hardware and education software available in a school 109.32 as all other students in the enrolling district. An on-line 109.33 learning provider must assist an on-line learning student whose 109.34 family qualifies for the education tax credit under section 109.35 290.0674 to acquire computer hardware and educational software 109.36 for on-line learning purposes. 110.1 (e) An enrolling district may offer on-line learning to its 110.2 enrolled students. Such on-line learning does not generate 110.3 on-line learning funds under this section. An enrolling 110.4 district that offers on-line learning only to its enrolled 110.5 students is not subject to the reporting requirements or review 110.6 criteria under subdivision 7. A teacher with a Minnesota 110.7 license must assemble and deliver instruction to enrolled 110.8 students receiving on-line learning from an enrolling district. 110.9 The instruction may include curriculum developed by persons 110.10 other than a teacher with a Minnesota license. 110.11 (f) An on-line learning provider that is not the enrolling 110.12 district is subject to the reporting requirements and review 110.13 criteria under subdivision 7. A teacher with a Minnesota 110.14 license must assemble and deliver instruction to on-line 110.15 learning students. The instruction may include curriculum 110.16 developed by persons other than a teacher with a Minnesota 110.17 license. Unless the commissioner grants a waiver, a teacher 110.18 providing on-line learning instruction must not instruct more 110.19 than 40 students in any one on-line learning course or program. 110.20 Sec. 2. Minnesota Statutes 2002, section 125A.023, 110.21 subdivision 3, is amended to read: 110.22 Subd. 3. [DEFINITIONS.] For purposes of this section and 110.23 section 125A.027, the following terms have the meanings given 110.24 them: 110.25 (a) "Health plan" means: 110.26 (1) a health plan under section 62Q.01, subdivision 3; 110.27 (2) a county-based purchasing plan under section 256B.692; 110.28 (3) a self-insured health plan established by a local 110.29 government under section 471.617; or 110.30 (4) self-insured health coverage provided by the state to 110.31 its employees or retirees. 110.32 (b) For purposes of this section, "health plan company" 110.33 means an entity that issues a health plan as defined in 110.34 paragraph (a). 110.35 (c) "Individual interagency intervention plan" means a 110.36 standardized written plan describing those programs or services 111.1 and the accompanying funding sources available to eligible 111.2 children with disabilities. 111.3 (d) "Interagency intervention service system" means a 111.4 system that coordinates services and programs required in state 111.5 and federal law to meet the needs of eligible children with 111.6 disabilities agesthree tobirth through 21, including: 111.7 (1) services provided under the following programs or 111.8 initiatives administered by state or local agencies: 111.9 (i) the maternal and child health program under title V of 111.10 the Social Security Act, United States Code, title 42, sections111.11701 to 709; 111.12 (ii) the Minnesota Children with Special Health Needs 111.13 program under sections 144.05 and 144.07; 111.14 (iii) the Individuals with Disabilities Education Actunder111.15United States Code, title 20, chapter 33, subchapter II,111.16sections 1411 to 1420, Part B, section 619, and Part C as 111.17 amended; 111.18(iii)(iv) medical assistance under title 42, chapter 7, of 111.19 the Social Security Act, United States Code, title 42, chapter111.207, subchapter XIX, section 1396, et seq.; 111.21(iv)(v)thedevelopmental disabilitiesAssistance and Bill111.22of Rights Act, United States Code, title 42, chapter 75,111.23subchapter II, sections 6021 to 6030, Part Bservices under 111.24 chapter 256B; 111.25(v)(vi) the Head Start Act, United States Code, title 42,111.26chapter 105, subchapter II, sections 9831 to 9852under title 111.27 42, chapter 105, of the Social Security Act; 111.28(vi)(vii) vocational rehabilitation services provided 111.29 underchapterchapters 248 and 268A and the Rehabilitation Act 111.30 of 1973; 111.31(vii)(viii) Juvenile Court Act services provided under 111.32 sections 260.011 to 260.91; 260B.001 to 260B.446; and 260C.001 111.33 to 260C.451; 111.34(viii) the children's mental health collaboratives under111.35section 245.493;111.36(ix) the family service collaboratives under section112.1124D.23;112.2(x) the family community support plan under section112.3245.4881, subdivision 4;112.4(xi) the MinnesotaCare program under chapter 256L;112.5(xii)(ix) Minnesota Comprehensive Children's Mental Health 112.6 Act under section 245.487; 112.7 (x) the community health services grants underchapter112.8145sections 145.88 to 145.9266; 112.9(xiii) the Community Social Services Act funding under the112.10Social Security Act, United States Code, title 42, sections 1397112.11to 1397f; and112.12(xiv) the community transition interagency committees under112.13section 125A.22;112.14 (xi) the Local Public Health Act under chapter 145A; and 112.15 (xii) the Children and Community Services Act, sections 112.16 256M.60 to 256M.80; 112.17 (2) service provision and funding that can be coordinated 112.18 through: 112.19 (i) the children's mental health collaborative under 112.20 section 245.493; 112.21 (ii) the family services collaborative under section 112.22 124D.23; 112.23 (iii) the community transition interagency committees under 112.24 section 125A.22; and 112.25 (iv) the interagency early intervention committees under 112.26 section 125A.259; 112.27 (3) financial and other funding programs to be coordinated 112.28 including medical assistance under title 42, chapter 7, of the 112.29 Social Security Act, the MinnesotaCare program under chapter 112.30 256L, Supplemental Social Security Income, Developmental 112.31 Disabilities Assistance, and any other employment-related 112.32 activities associated with the Social Security Administration; 112.33 and services provided under a health plan in conformity with an 112.34 individual family service plan or an individual education 112.35 plan or an individual interagency intervention plan; and 112.36(3)(4) additional appropriate services that local agencies 113.1 and counties provide on an individual need basis upon 113.2 determining eligibility and receiving a request from the 113.3 interagency early intervention committee and the child's parent. 113.4 (e) "Children with disabilities" has the meaning given in 113.5 section 125A.02. 113.6 (f) A "standardized written plan" means those individual 113.7 services or programs available through the interagency 113.8 intervention service system to an eligible child other than the 113.9 services or programs described in the child's individual 113.10 education plan or the child's individual family service plan. 113.11 Sec. 3. Minnesota Statutes 2003 Supplement, section 113.12 125A.023, subdivision 4, is amended to read: 113.13 Subd. 4. [STATE INTERAGENCY COMMITTEE.] (a) The governor 113.14 shall convenea 19-memberan interagency committee to develop 113.15 and implement a coordinated, multidisciplinary, interagency 113.16 intervention service system for children agesthree tobirth 113.17 through 21 with disabilities. The commissioners ofcommerce,113.18 education, health,human rights,human services,economic113.19security,andcorrectionsemployment and economic development 113.20 shall each appoint two committee members from their departments; 113.21 the commissioners of corrections, human rights, and commerce 113.22 shall each appoint one member from their departments; the 113.23 Association of Minnesota Counties shall appoint two county 113.24 representatives, one of whom must be an elected official, as 113.25 committee members; and the Minnesota School Boards Association, 113.26 the Minnesota Administrators of Special Education, and the 113.27 School Nurse Association of Minnesota shall each appoint one 113.28 committee member; the governor shall appoint two parent 113.29 representatives of a child who is eligible for special 113.30 education. The committee shall select a chair from among its 113.31 members. 113.32 (b) The committee shall: 113.33 (1) identify and assist in removing state and federal 113.34 barriers to local coordination of services provided to children 113.35 with disabilities; 113.36 (2) identify adequate, equitable, and flexible funding 114.1 sources to streamline these services; 114.2 (3) develop guidelines for implementing policies that 114.3 ensure a comprehensive and coordinated system of all state and 114.4 local agency services, including multidisciplinary assessment 114.5 practices for children with disabilities ages three to 21; 114.6 (4) develop, consistent with federal law, a standardized 114.7 written plan for providing services to a child with 114.8 disabilities; 114.9 (5) identify how current systems for dispute resolution can 114.10 be coordinated and develop guidelines for that coordination; 114.11 (6) develop an evaluation process to measure the success of 114.12 state and local interagency efforts in improving the quality and 114.13 coordination of services to children with disabilities ages 114.14 three to 21; 114.15 (7) develop guidelines to assist the governing boards of 114.16 the interagency early intervention committees in carrying out 114.17 the duties assigned in section 125A.027, subdivision 1, 114.18 paragraph (b); and 114.19 (8) carry out other duties necessary to develop and 114.20 implement within communities a coordinated, multidisciplinary, 114.21 interagency intervention service system for children with 114.22 disabilities. 114.23 (c) The committee shall consult on an ongoing basis with 114.24 the state Education Advisory Committee for Special Education and 114.25 the governor's Interagency Coordinating Council in carrying out 114.26 its duties under this section, including assisting the governing 114.27 boards of the interagency early intervention committees. 114.28 Sec. 4. Minnesota Statutes 2002, section 125A.03, is 114.29 amended to read: 114.30 125A.03 [SPECIAL INSTRUCTION FOR CHILDREN WITH A 114.31 DISABILITY.] 114.32 (a) As defined in paragraph (b), every district must 114.33 provide special instruction and services, either within the 114.34 district or in another district, for all children with a 114.35 disability, including providing required services under the Code 114.36 of Federal Regulations, title 34, section 300.121, paragraph 115.1 (d), to those children suspended or expelled from school for 115.2 more than ten school days in that school year, who are residents 115.3 of the district and who are disabled as set forth in section 115.4 125A.02. For purposes of state and federal special education 115.5 laws, the phrase "special instruction and services" in the state 115.6 education code means a free and appropriate public education 115.7 provided to an eligible child with disabilities and includes 115.8 special education and related services defined in the 115.9 Individuals with Disabilities Education Act, subpart A, section 115.10 300.24. 115.11 (b) Notwithstanding any age limits in laws to the contrary, 115.12 special instruction and services must be provided from birth 115.13 until July 1 after the child with a disability becomes 21 years 115.14 old but shall not extend beyond secondary school or its 115.15 equivalent, except as provided in section 124D.68, subdivision 115.16 2. Local health, education, and social service agencies must 115.17 refer children under age five who are known to need or suspected 115.18 of needing special instruction and services to the school 115.19 district. Districts with less than the minimum number of 115.20 eligible children with a disability as determined by the 115.21 commissioner must cooperate with other districts to maintain a 115.22 full range of programs for education and services for children 115.23 with a disability. This section does not alter the compulsory 115.24 attendance requirements of section 120A.22. 115.25 [EFFECTIVE DATE.] This section is effective the day 115.26 following final enactment. 115.27 Sec. 5. Minnesota Statutes 2003 Supplement, section 115.28 125A.79, subdivision 1, is amended to read: 115.29 Subdivision 1. [DEFINITIONS.] For the purposes of this 115.30 section, the definitions in this subdivision apply. 115.31 (a) "Unreimbursed special education cost" means the sum of 115.32 the following: 115.33 (1) expenditures for teachers' salaries, contracted 115.34 services, supplies, equipment, and transportation services 115.35 eligible for revenue under section 125A.76; plus 115.36 (2) expenditures for tuition bills received under sections 116.1 125A.03 to 125A.24 and 125A.65 for services eligible for revenue 116.2 under section 125A.76, subdivision 2; minus 116.3 (3) revenue for teachers' salaries, contracted services, 116.4 supplies, and equipment under section 125A.76; minus 116.5 (4) tuition receipts under sections 125A.03 to 125A.24 and 116.6 125A.65 for services eligible for revenue under section 125A.76, 116.7 subdivision 2. 116.8 (b)"General revenue" means for fiscal year 1996, the sum116.9of the general education revenue according to section 126C.10,116.10subdivision 1, as adjusted according to section 127A.47,116.11subdivision 7, plus the total referendum revenue according to116.12section 126C.17, subdivision 4. For fiscal years 1997 and116.13later,"General revenue" means the sum of the general education 116.14 revenue according to section 126C.10, subdivision 1, as adjusted 116.15 according to section 127A.47, subdivisions 7 and 8, plus the 116.16 total referendum revenue minus transportation sparsity revenue 116.17 minus total operating capital revenue. 116.18 (c) "Average daily membership" has the meaning given it in 116.19 section 126C.05. 116.20 (d) "Program growth factor" means 1.02 for fiscal year 116.21 2003, and 1.0 for fiscal year 2004 and later. 116.22 Sec. 6. Minnesota Statutes 2002, section 125A.79, 116.23 subdivision 5, is amended to read: 116.24 Subd. 5. [INITIAL EXCESS COST AID; FISCAL YEARS 2003 AND 116.25 2004.] For fiscal years20022003 andlater2004, a district's 116.26 initial excess cost aid equals the greatest of: 116.27 (1) 75 percent of the difference between (i) the district's 116.28 unreimbursed special education cost and (ii) 4.36 percent of the 116.29 district's general revenue; 116.30 (2) 70 percent of the difference between (i) the increase 116.31 in the district's unreimbursed special education cost between 116.32 the base year as defined in section 125A.76, subdivision 1, and 116.33 the current year and (ii) 1.6 percent of the district's general 116.34 revenue; or 116.35 (3) zero. 116.36 Sec. 7. Minnesota Statutes 2002, section 125A.79, is 117.1 amended by adding a subdivision to read: 117.2 Subd. 5a. [INITIAL EXCESS COST AID.] For fiscal years 2005 117.3 and later, a district's initial excess cost aid equals the 117.4 greater of: 117.5 (1) 75 percent of the difference between (i) the district's 117.6 unreimbursed special education cost for the previous fiscal 117.7 year, and (ii) the sum of 4.36 percent of the district's general 117.8 revenue for the previous fiscal year and the district's 117.9 supplemental excess cost aid for the previous fiscal year; or 117.10 (2) zero. 117.11 Sec. 8. Minnesota Statutes 2002, section 125A.79, is 117.12 amended by adding a subdivision to read: 117.13 Subd. 5b. [SUPPLEMENTAL EXCESS COST AID.] (a) For fiscal 117.14 years 2005 and later, a district's supplemental excess cost aid 117.15 equals the greater of: 117.16 (1) 75 percent of the difference between (i) the increase 117.17 in the district's unreimbursed special education excess cost 117.18 between the previous fiscal year and the current fiscal year, 117.19 and (ii) $80 times the district's adjusted marginal cost pupil 117.20 units for the current fiscal year; or 117.21 (2) zero. 117.22 (b) The state total supplemental excess cost aid for any 117.23 fiscal year must not exceed $2,000,000. If the state total 117.24 supplemental excess cost aid according to paragraph (a) exceeds 117.25 $2,000,000, the supplemental excess cost aid for each district 117.26 shall be reduced proportionately so that the state total equals 117.27 $2,000,000. 117.28 Sec. 9. Minnesota Statutes 2002, section 125A.79, 117.29 subdivision 7, is amended to read: 117.30 Subd. 7. [DISTRICT SPECIAL EDUCATION EXCESS COST AID.] (a) 117.31 A district's special education excess cost aid for fiscal year 117.3220022003 andlater2004 equals the state total special 117.33 education excess cost aid times the ratio of the district's 117.34 initial excess cost aid to the state total initial excess cost 117.35 aid. 117.36 (b) A district's special education excess cost aid for 118.1 fiscal year 2005 and later equals the sum of: 118.2 (i) the product of the difference between the state total 118.3 special education excess cost aid and the state total 118.4 supplemental excess cost aid times the ratio of the district's 118.5 initial excess cost aid to the state total initial excess cost 118.6 aid; and 118.7 (ii) the district's supplemental excess cost aid according 118.8 to subdivision 5b. 118.9 Sec. 10. Laws 2003, First Special Session chapter 9, 118.10 article 3, section 19, is amended to read: 118.11 Sec. 19. [DEPARTMENT RESPONSIBILITY.] 118.12 ByJanuary 1June 1, 2004, the commissioner of education 118.13 must adopt rules that: 118.14 (1) establish criteria for selecting hearing officers, the 118.15 standards of conduct to which a hearing officer must adhere, and 118.16 a process to evaluate the hearing system; 118.17 (2) ensure that appropriately trained and knowledgeable 118.18 persons conduct due process hearings in compliance with federal 118.19 law; and 118.20 (3) create standards for expedited due process hearings 118.21 under federal law. 118.22 By March 1, 2004, the commissioner of education must 118.23 develop and make available a notice for participants in 118.24 state-provided dispute resolution processes that informs 118.25 participants of their rights concerning dispute resolution. 118.26 [EFFECTIVE DATE.] This section is effective retroactive to 118.27 July 1, 2003. 118.28 ARTICLE 4 118.29 FACILITIES 118.30 Section 1. [123B.515] [CHROMATED COPPER ARSENATE TREATED 118.31 LUMBER PROHIBITED.] 118.32 As of the effective date of this section, a school district 118.33 and a charter school are prohibited from purchasing chromated 118.34 copper arsenate treated lumber, or products made of chromated 118.35 copper arsenate treated lumber, for use as playground equipment, 118.36 benches, picnic tables, walkways, fences, or landscape timbers. 119.1 [EFFECTIVE DATE.] This section is effective the day 119.2 following final enactment. 119.3 Sec. 2. Minnesota Statutes 2002, section 123B.53, 119.4 subdivision 6, is amended to read: 119.5 Subd. 6. [DEBT SERVICE EQUALIZATION AID.] (a) A district's 119.6 debt service equalization aid is the sum of the district's first 119.7 tier debt service equalization aid and the district's second 119.8 tier debt service equalization aid. 119.9 (b) A district's first tier debt service equalization aid 119.10 equals the difference between the district's first tier debt 119.11 service equalization revenue and the district's first tier 119.12 equalized debt service levy. 119.13 (c) A district's second tier debt service equalization aid 119.14 equals the difference between the district's second tier debt 119.15 service equalization revenue and the district's second tier 119.16 equalized debt service levy. 119.17 Sec. 3. Minnesota Statutes 2003 Supplement, section 119.18 123B.54, is amended to read: 119.19 123B.54 [DEBT SERVICE APPROPRIATION.] 119.20 (a)$25,987,000 in fiscal year 2002, $29,941,000 in fiscal119.21year 2003, $40,075,000$35,598,000 in fiscal year 2004,and119.22$39,774,000$31,220,000 in fiscalyearsyear 2005, $27,830,000 119.23 in fiscal year 2006, and $24,872,000 in fiscal year 2007 and 119.24 later are appropriated from the general fund to the commissioner 119.25 of education for payment of debt service equalization aid under 119.26 section 123B.53. 119.27 (b) The appropriations in paragraph (a) must be reduced by 119.28 the amount of any money specifically appropriated for the same 119.29 purpose in any year from any state fund. 119.30 [EFFECTIVE DATE.] This section is effective the day 119.31 following final enactment. 119.32 Sec. 4. Minnesota Statutes 2002, section 123B.71, 119.33 subdivision 9, is amended to read: 119.34 Subd. 9. [INFORMATION REQUIRED.] A school board proposing 119.35 to construct a facility described in subdivision 8 shall submit 119.36 to the commissioner a proposal containing information including 120.1 at least the following: 120.2 (1) the geographic area and population to be served, 120.3 preschool through grade 12 student enrollments for the past five 120.4 years, and student enrollment projections for the next five 120.5 years; 120.6 (2) a list of existing facilities by year constructed, 120.7 their uses, and an assessment of the extent to which alternate 120.8 facilities are available within the school district boundaries 120.9 and in adjacent school districts; 120.10 (3) a list of the specific deficiencies of the facility 120.11 that demonstrate the need for a new or renovated facility to be 120.12 provided, and a list of the specific benefits that the new or 120.13 renovated facility will provide to the students, teachers, and 120.14 community users served by the facility; 120.15 (4) the relationship of the project to any priorities 120.16 established by the school district, educational cooperatives 120.17 that provide support services, or other public bodies in the 120.18 service area; 120.19 (5) a specification of how the project will increase 120.20 community use of the facility and whether and how the project 120.21 will increase collaboration with other governmental or nonprofit 120.22 entities; 120.23 (6) a description of the project, including the 120.24 specification of site and outdoor space acreage and square 120.25 footage allocations for classrooms, laboratories, and support 120.26 spaces; estimated expenditures for the major portions of the 120.27 project; and the dates the project will begin and be completed; 120.28 (7) a specification of the source of financing the project; 120.29 the scheduled date for a bond issue or school board action; a 120.30 schedule of payments, including debt service equalization aid; 120.31 and the effect of a bond issue on local property taxes by the 120.32 property class and valuation; 120.33 (8) an analysis of how the proposed new or remodeled 120.34 facility will affect school district operational or 120.35 administrative staffing costs, and how the district's operating 120.36 budget will cover any increased operational or administrative 121.1 staffing costs; 121.2 (9) a description of the consultation with local or state 121.3 road and transportation officials on school site access and 121.4 safety issues, and the ways that the project will address those 121.5 issues; 121.6 (10) a description of how indoor air quality issues have 121.7 been considered and a certification that the architects and 121.8 engineers designing the facility will have professional 121.9 liability insurance; 121.10 (11) as required under section 123B.72, for buildings 121.11 coming into service after July 1, 2002, a certification that the 121.12 plans and designs for the extensively renovated or new 121.13 facility's heating, ventilation, and air conditioning systems 121.14 will meet or exceed code standards; will provide for the 121.15 monitoring of outdoor airflow and total airflow of ventilation 121.16 systems; and will provide an indoor air quality filtration 121.17 system that meets ASHRAE standard 52.1; 121.18 (12) a specification of any desegregation requirements that 121.19 cannot be met by any other reasonable means;and121.20 (13) a specification, if applicable, of how the facility 121.21 will utilize environmentally sustainable school facility design 121.22 concepts; and 121.23 (14) a description, if applicable, of how the facility will 121.24 address classroom acoustics, and whether the facility will meet 121.25 the American National Standard Institute's guidelines for 121.26 classroom acoustics. 121.27 [EFFECTIVE DATE.] This section is effective for proposals 121.28 submitted on or after July 1, 2004. 121.29 Sec. 5. [125B.26] [TELECOMMUNICATIONS/INTERNET ACCESS 121.30 EQUITY AID.] 121.31 Subdivision 1. [COSTS TO BE SUBMITTED.] (a) A district or 121.32 charter school shall submit its actual 121.33 telecommunications/Internet access costs for the previous fiscal 121.34 year, adjusted for any e-rate revenue received, to the 121.35 department by August 15 of each year as prescribed by the 121.36 commissioner. Costs eligible for reimbursement under this 122.1 program are limited to the following: 122.2 (1) ongoing or recurring telecommunications/Internet access 122.3 costs associated with Internet access, data lines, and video 122.4 links providing: 122.5 (i) the equivalent of one data line, video link, or 122.6 integrated data/video link that relies on a transport medium 122.7 that operates at a speed of 1.544 megabytes per second (T1) for 122.8 each elementary school, middle school, or high school under 122.9 section 120A.05, subdivisions 9, 11, and 13, including the 122.10 recurring telecommunications line lease costs and ongoing 122.11 Internet access service fees; or 122.12 (ii) the equivalent of one data line or video circuit, or 122.13 integrated data/video link that relies on a transport medium 122.14 that operates at a minimum speed of 1.544 megabytes per second 122.15 (T1) for each district, including recurring telecommunications 122.16 line lease costs and ongoing Internet access service fees; 122.17 (2) recurring costs of contractual or vendor-provided 122.18 maintenance on the school district's wide area network to the 122.19 point of presence at the school building up to the router, 122.20 codec, or other service delivery equipment located at the point 122.21 of presence termination at the school or school district; 122.22 (3) recurring costs of cooperative, shared arrangements for 122.23 regional delivery of telecommunications/Internet access between 122.24 school districts, postsecondary institutions, and public 122.25 libraries including network gateways, peering points, regional 122.26 network infrastructure, Internet2 access, and network support, 122.27 maintenance, and coordination; and 122.28 (4) service provider installation fees for installation of 122.29 new telecommunications lines or increased bandwidth. 122.30 (b) Costs not eligible for reimbursement under this program 122.31 include: 122.32 (1) recurring costs of school district staff providing 122.33 network infrastructure support; 122.34 (2) recurring costs associated with voice and standard 122.35 telephone service; 122.36 (3) costs associated with purchase of network hardware, 123.1 telephones, computers, or other peripheral equipment needed to 123.2 deliver telecommunications access to the school or school 123.3 district; 123.4 (4) costs associated with laying fiber for 123.5 telecommunications access; 123.6 (5) costs associated with wiring school or school district 123.7 buildings; 123.8 (6) costs associated with purchase and/or installation of 123.9 Internet filtering; and 123.10 (7) costs associated with digital content, including 123.11 on-line learning or distance learning programming, and 123.12 information databases. 123.13 Subd. 2. [E-RATES.] To be eligible for aid under this 123.14 section, a district or charter school is required to file an 123.15 e-rate application either separately or through its 123.16 telecommunications access cluster and to have a current 123.17 technology plan on file with the Department of Education. 123.18 Discounts received on telecommunications expenditures shall be 123.19 reflected in the costs submitted to the department for aid under 123.20 this section. 123.21 Subd. 3. [REIMBURSEMENT CRITERIA.] The commissioner shall 123.22 develop criteria for approving costs submitted by school 123.23 districts and charter schools under subdivision 1. 123.24 Subd. 4. [DISTRICT AID.] For fiscal year 2005 and later, a 123.25 district or charter school's Internet access equity aid equals 123.26 90 percent of the district or charter school's approved cost for 123.27 the previous fiscal year according to subdivision 1 exceeding 123.28 $15 times the district's adjusted marginal cost pupil units for 123.29 the previous fiscal year. 123.30 Subd. 5. [TELECOMMUNICATIONS/INTERNET ACCESS SERVICES FOR 123.31 NONPUBLIC SCHOOLS.] (a) Districts shall provide each year upon 123.32 formal request by or on behalf of a nonpublic school, not 123.33 including home schools, located in that district or area, 123.34 ongoing or recurring telecommunications access services to the 123.35 nonpublic school either through existing district providers or 123.36 through separate providers. 124.1 (b) The amount of district aid for telecommunications 124.2 access services for each nonpublic school under this subdivision 124.3 equals the lesser of: 124.4 (1) 90 percent of the nonpublic school's approved cost for 124.5 the previous fiscal year according to subdivision 1 exceeding 124.6 $10 times the number of weighted pupils enrolled at the 124.7 nonpublic school as of October 1 of the previous school year; or 124.8 (2) the product of the district's aid per adjusted marginal 124.9 cost pupil unit according to subdivision 4 times the number of 124.10 weighted pupils enrolled at the nonpublic school as of October 1 124.11 of the previous school year. 124.12 (c) For purposes of this subdivision, nonpublic school 124.13 pupils shall be weighted by grade level using the weighing 124.14 factors defined in section 126C.05, subdivision 1. 124.15 (d) Each year, a district providing services under 124.16 paragraph (a) may claim up to five percent of the aid determined 124.17 in paragraph (b) for costs of administering this subdivision. 124.18 No district may expend an amount for these telecommunications 124.19 access services which exceeds the amount allocated under this 124.20 subdivision. The nonpublic school is responsible for the 124.21 Internet access costs not covered by this section. 124.22 (e) At the request of a nonpublic school, districts may 124.23 allocate the amount determined in paragraph (b) directly to the 124.24 nonpublic school to pay for or offset the nonpublic school's 124.25 costs for telecommunications access services. However, the 124.26 amount allocated directly to the nonpublic school may not exceed 124.27 the actual amount of the school's ongoing or recurring 124.28 telecommunications access costs. 124.29 Subd. 6. [SEVERABILITY.] If any portion of this section is 124.30 found by a court to be unconstitutional, the remaining portions 124.31 of the section shall remain in effect. 124.32 [EFFECTIVE DATE.] This section is effective for revenue for 124.33 fiscal year 2005. 124.34 Sec. 6. Minnesota Statutes 2003 Supplement, section 124.35 126C.40, subdivision 1, is amended to read: 124.36 Subdivision 1. [TO LEASE BUILDING OR LAND.] (a) When an 125.1 independent or a special school district or a group of 125.2 independent or special school districts finds it economically 125.3 advantageous to rent or lease a building or land for any 125.4 instructional purposes or for school storage or furniture 125.5 repair, and it determines that the operating capital revenue 125.6 authorized under section 126C.10, subdivision 13, is 125.7 insufficient for this purpose, it may apply to the commissioner 125.8 for permission to make an additional capital expenditure levy 125.9 for this purpose. An application for permission to levy under 125.10 this subdivision must contain financial justification for the 125.11 proposed levy, the terms and conditions of the proposed lease, 125.12 and a description of the space to be leased and its proposed use. 125.13 (b) The criteria for approval of applications to levy under 125.14 this subdivision must include: the reasonableness of the price, 125.15 the appropriateness of the space to the proposed activity, the 125.16 feasibility of transporting pupils to the leased building or 125.17 land, conformity of the lease to the laws and rules of the state 125.18 of Minnesota, and the appropriateness of the proposed lease to 125.19 the space needs and the financial condition of the district. 125.20 The commissioner must not authorize a levy under this 125.21 subdivision in an amount greater than90 percent ofthe cost to 125.22 the district of renting or leasing a building or land for 125.23 approved purposes. The proceeds of this levy must not be used 125.24 for custodial or other maintenance services. A district may not 125.25 levy under this subdivision for the purpose of leasing or 125.26 renting a district-owned building or site to itself. 125.27 (c) For agreements finalized after July 1, 1997, a district 125.28 may not levy under this subdivision for the purpose of leasing: 125.29 (1) a newly constructed building used primarily for regular 125.30 kindergarten, elementary, or secondary instruction; or (2) a 125.31 newly constructed building addition or additions used primarily 125.32 for regular kindergarten, elementary, or secondary instruction 125.33 that contains more than 20 percent of the square footage of the 125.34 previously existing building. 125.35 (d) Notwithstanding paragraph (b), a district may levy 125.36 under this subdivision for the purpose of leasing or renting a 126.1 district-owned building or site to itself only if the amount is 126.2 needed by the district to make payments required by a lease 126.3 purchase agreement, installment purchase agreement, or other 126.4 deferred payments agreement authorized by law, and the levy 126.5 meets the requirements of paragraph (c). A levy authorized for 126.6 a district by the commissioner under this paragraph may be in 126.7 the amount needed by the district to make payments required by a 126.8 lease purchase agreement, installment purchase agreement, or 126.9 other deferred payments agreement authorized by law, provided 126.10 that any agreement include a provision giving the school 126.11 districts the right to terminate the agreement annually without 126.12 penalty. 126.13 (e) The total levy under this subdivision for a district 126.14 for any year must not exceed$90$100 times the resident pupil 126.15 units for the fiscal year to which the levy is attributable. 126.16 (f) For agreements for which a review and comment have been 126.17 submitted to the Department of Education after April 1, 1998, 126.18 the term "instructional purpose" as used in this subdivision 126.19 excludes expenditures on stadiums. 126.20 (g) The commissioner of education may authorize a school 126.21 district to exceed the limit in paragraph (e) if the school 126.22 district petitions the commissioner for approval. The 126.23 commissioner shall grant approval to a school district to exceed 126.24 the limit in paragraph (e) for not more than five years if the 126.25 district meets the following criteria: 126.26 (1) the school district has been experiencing pupil 126.27 enrollment growth in the preceding five years; 126.28 (2) the purpose of the increased levy is in the long-term 126.29 public interest; 126.30 (3) the purpose of the increased levy promotes colocation 126.31 of government services; and 126.32 (4) the purpose of the increased levy is in the long-term 126.33 interest of the district by avoiding over construction of school 126.34 facilities. 126.35 (h) A school district that is a member of an intermediate 126.36 school district may include in its authority under this section 127.190 percent ofthe costs associated with leases of administrative 127.2 and classroom space for intermediate school district programs. 127.3 This authority must not exceed$22.50$25 times the adjusted 127.4 marginal cost pupil units of the member districts. This 127.5 authority is in addition to any other authority authorized under 127.6 this section. 127.7 (i) In addition to the allowable capital levies in 127.8 paragraph (a), a district that is a member of the "Technology 127.9 and Information Education Systems" data processing joint board, 127.10 that finds it economically advantageous to enter into a lease 127.11 purchase agreement for a building for a group of school 127.12 districts or special school districts for staff development 127.13 purposes, may levy for its portion of lease costs attributed to 127.14 the district within the total levy limit in paragraph (e). 127.15 [EFFECTIVE DATE.] This section is effective for taxes 127.16 payable in 2005. 127.17 Sec. 7. Minnesota Statutes 2003 Supplement, section 127.18 126C.63, subdivision 8, is amended to read: 127.19 Subd. 8. [MAXIMUM EFFORT DEBT SERVICE LEVY.] (a) "Maximum 127.20 effort debt service levy" means the lesser of: 127.21 (1) a levy in whichever of the following amounts is 127.22 applicable: 127.23 (i) in any district receiving a debt service loan for a 127.24 debt service levy payable in 2002 and thereafter, or granted a 127.25 capital loan after January 1, 2002, a levy in total dollar 127.26 amount computed at a rate of 40 percent of adjusted net tax 127.27 capacity for taxes payable in 2002 and thereafter; 127.28 (ii) in any district receiving a debt service loan for a 127.29 debt service levy payable in 2001 or earlier, or granted a 127.30 capital loan before January 2, 2001, a levy in a total dollar 127.31 amount computed at a rate of3228 percent of adjusted net tax 127.32 capacity for taxes payable in 2002 and thereafter; or 127.33 (2) a levy in any district for which a capital loan was 127.34 approved prior to August 1, 1981, a levy in a total dollar 127.35 amount equal to the sum of the amount of the required debt 127.36 service levy and an amount which when levied annually will in 128.1 the opinion of the commissioner be sufficient to retire the 128.2 remaining interest and principal on any outstanding loans from 128.3 the state within 30 years of the original date when the capital 128.4 loan was granted. 128.5 (b) The board in any district affected by the provisions of 128.6 paragraph (a), clause (2), may elect instead to determine the 128.7 amount of its levy according to the provisions of paragraph (a), 128.8 clause (1). If a district's capital loan is not paid within 30 128.9 years because it elects to determine the amount of its levy 128.10 according to the provisions of paragraph (a), clause (2), the 128.11 liability of the district for the amount of the difference 128.12 between the amount it levied under paragraph (a), clause (2), 128.13 and the amount it would have levied under paragraph (a), clause 128.14 (1), and for interest on the amount of that difference, must not 128.15 be satisfied and discharged pursuant to Minnesota Statutes 1988, 128.16 or an earlier edition of Minnesota Statutes if applicable, 128.17 section 124.43, subdivision 4. 128.18 [EFFECTIVE DATE.] This section is effective for taxes 128.19 payable in 2005. 128.20 Sec. 8. Minnesota Statutes 2002, section 127A.45, 128.21 subdivision 11, is amended to read: 128.22 Subd. 11. [PAYMENT PERCENTAGE FOR REIMBURSEMENT AIDS.] One 128.23 hundred percent of the aid for the previous fiscal year must be 128.24 paid in the current year for the following aids: 128.25 telecommunications/Internet access equity aid according to 128.26 section 125B.26, special education special pupil aid according 128.27 to section 125A.75, subdivision 3, aid for litigation costs 128.28 according to section 125A.75, subdivision 8, aid for 128.29 court-placed special education expenses according to section 128.30 125A.79, subdivision 4, and aid for special education 128.31 out-of-state tuition according to section 125A.79, subdivision 8. 128.32 Sec. 9. Minnesota Statutes 2003 Supplement, section 128.33 475.61, subdivision 4, is amended to read: 128.34 Subd. 4. [SURPLUS FUNDS.] (a) All such taxes shall be 128.35 collected and remitted to the municipality by the county 128.36 treasurer as other taxes are collected and remitted, and shall 129.1 be used only for payment of the obligations on account of which 129.2 levied or to repay advances from other funds used for such 129.3 payments, except that any surplus remaining in the debt service 129.4 fund when the obligations and interest thereon are paid may be 129.5 appropriated to any other general purpose by the municipality. 129.6 However, the amount of any surplus remaining in the debt service 129.7 fund of a school district when the obligations and interest 129.8 thereon are paid shall be used to reduce the general fund levy 129.9 authorized pursuant to chapters 122A, 123A, 123B, 124D, and 126C 129.10 and the state aids authorized pursuant to chapters 122A, 123A, 129.11 123B, 124D, 125A, 126C, and 127A. 129.12 (b) If the district qualified for second tier debt service 129.13 equalization aid in the last year that it qualified for debt 129.14 service equalization aid, the reduction to state aids equals the 129.15 lesser of (1) the amount of the surplus times the ratio of the 129.16 district's second tier debt service equalization aid to the 129.17 district's second tier debt service equalization revenue for the 129.18 last year that the district qualified for debt service 129.19 equalization aid; or (2) the district's cumulative amount of 129.20 debt service equalization aid. 129.21 (c) If the district did not qualify for second tier debt 129.22 service equalization aid in the last year that it qualified for 129.23 debt service equalization aid, the reduction to state aids 129.24 equals the lesser of (1) the amount of the surplus times the 129.25 ratio of the district's debt service equalization aid to the 129.26 district's debt service equalization revenue for the last year 129.27 that the district qualified for debt service equalization aid; 129.28 or (2) the district's cumulative amount of debt service 129.29 equalization aid. 129.30(c)(d) The reduction to the general fund levy equals the 129.31 total amount of the surplus minus the reduction to state aids. 129.32 [EFFECTIVE DATE.] This section is effective for revenue for 129.33 fiscal year 2005. 129.34 Sec. 10. Laws 2003, First Special Session chapter 9, 129.35 article 4, section 29, is amended to read: 129.36 Sec. 29. [GARAGE LEASE LEVY; SARTELL.] 130.1 For taxes payable in 2004, 2005,and2006, and 2007, 130.2 independent school district No.740748, Sartell, may levy up to 130.3 $107,000 each year for the purpose of leasing a school bus 130.4 storage facility. The department of education shall include 130.5 this levy in the calculation of eligible building lease levy 130.6 under Minnesota Statutes, section 126C.40, subdivision 1. This 130.7 levy shall not allow the district to exceed the $100 per 130.8 resident marginal cost pupil unit cap in that section. The 130.9 district is eligible to make this levy only if it sells its 130.10 current school bus storage site to the city of Sartell and the 130.11 district may not use this levy as part of a lease purchase 130.12 agreement to replace its current school bus storage facility. 130.13 Sec. 11. [LEASE LEVY; MOUNDS VIEW SCHOOL DISTRICT.] 130.14 Notwithstanding the lease levy restrictions in Minnesota 130.15 Statutes, section 126C.40, subdivision 1, Independent School 130.16 District No. 621, Mounds View, may levy up to $200,000 per year 130.17 for four years for the purpose of making its payments to Ramsey 130.18 County for the school district's portion of the Ramsey County 130.19 maintenance facility located in Arden Hills. 130.20 [EFFECTIVE DATE.] This section is effective for taxes 130.21 payable in 2005. 130.22 Sec. 12. [LEVY; GLENCOE-SILVER LAKE.] 130.23 For taxes payable in 2005 only, Independent School District 130.24 No. 2859, Glencoe-Silver Lake, may levy an amount up to $64,000 130.25 for recovering the cost of replacing a gymnasium floor at 130.26 Lakeside Elementary School resulting from storm damage. 130.27 [EFFECTIVE DATE.] This section is effective for taxes 130.28 payable in 2005. 130.29 Sec. 13. [DISABLED ACCESS LEVY AUTHORITY; EAST GRAND 130.30 FORKS.] 130.31 Notwithstanding the time limits established in Minnesota 130.32 Statutes, section 123B.58, subdivision 3, Independent School 130.33 District No. 595, East Grand Forks, may levy up to $150,000 of 130.34 its remaining disabled access levy authority over five or fewer 130.35 years. 130.36 [EFFECTIVE DATE.] This section is effective the day 131.1 following final enactment. 131.2 Sec. 14. [APPROPRIATIONS.] 131.3 Subdivision 1. [DEPARTMENT OF EDUCATION.] The sum 131.4 indicated in this section is appropriated from the general fund 131.5 to the Department of Education for the fiscal year designated. 131.6 Subd. 2. [TELECOMMUNICATIONS/INTERNET ACCESS EQUITY 131.7 AID.] For telecommunications/Internet access cost equity aid 131.8 under Minnesota Statutes, section 125B.26: 131.9 $4,500,000 ..... 2005 131.10 If the appropriation for fiscal year 2005 is insufficient, 131.11 the aid for that year shall be prorated among participating 131.12 schools and districts so as not to exceed the total authorized 131.13 appropriation for that year. The budget base for this program 131.14 for fiscal year 2006 and later is $4,700,000. 131.15 ARTICLE 5 131.16 NUTRITION AND ACCOUNTING; OTHER PROGRAMS 131.17 Section 1. Minnesota Statutes 2003 Supplement, section 131.18 16A.152, subdivision 2, is amended to read: 131.19 Subd. 2. [ADDITIONAL REVENUES; PRIORITY.] (a) If on the 131.20 basis of a forecast of general fund revenues and expenditures, 131.21 the commissioner of finance determines that there will be a 131.22 positive unrestricted budgetary general fund balance at the 131.23 close of the biennium, the commissioner of finance must allocate 131.24 money to the following accounts and purposes in priority order: 131.25 (1) the cash flow account established in subdivision 1 131.26 until that account reaches $350,000,000;and131.27 (2) the budget reserve account established in subdivision 131.28 1a until that account reaches $653,000,000; 131.29 (3) the amount necessary to eliminate all or a portion of 131.30 the property tax revenue recognition shift in section 123B.75, 131.31 subdivision 5; and 131.32 (4) the amount necessary to increase the aid payment 131.33 schedule for school district aids and credits payments in 131.34 section 127A.45 from 80 percent to not more than 90 percent. 131.35 (b) The amounts necessary to meet the requirements of this 131.36 section are appropriated from the general fund within two weeks 132.1 after the forecast is released or, in the case of transfers 132.2 under paragraph (a), clauses (3) and (4), as necessary to meet 132.3 the appropriations schedules otherwise established in statute. 132.4 (c) To the extent that a positive unrestricted budgetary 132.5 general fund balance is projected, appropriations under this 132.6 section must be made before any transfer is made under section 132.7 16A.1522. 132.8 (d) The commissioner of finance shall certify the total 132.9 dollar amount of the reductions under paragraph (a), clauses (3) 132.10 and (4), to the commissioner of education. The commissioner of 132.11 education shall increase the aid payment percentage and reduce 132.12 the property tax shift percentage by these amounts and apply 132.13 those reductions to the current fiscal year and thereafter. 132.14 [EFFECTIVE DATE.] This section is effective the day 132.15 following final enactment. 132.16 Sec. 2. Minnesota Statutes 2002, section 123A.05, 132.17 subdivision 2, is amended to read: 132.18 Subd. 2. [RESERVE REVENUE.] Each district that is a member 132.19 of an area learning center must reserve revenue in an amount 132.20 equal to the sum of (1) at least 90 percent of the district 132.21 average general education revenue per pupil unit minus an amount 132.22 equal to the product of the formula allowance according to 132.23 section 126C.10, subdivision 2, times .0485, calculated without 132.24 basic skills revenue,and transportation sparsity revenue,and132.25the transportation portion of the transition revenue adjustment,132.26 times the number of pupil units attending an area learning 132.27 center program under this section, plus (2) the amount of basic 132.28 skills revenue generated by pupils attending the area learning 132.29 center. The amount of reserved revenue under this subdivision 132.30 may only be spent on program costs associated with the area 132.31 learning center. Compensatory revenue must be allocated 132.32 according to section 126C.15, subdivision 2. 132.33 Sec. 3. Minnesota Statutes 2002, section 123B.75, is 132.34 amended by adding a subdivision to read: 132.35 Subd. 4a. [TACONITE REVENUE.] Taconite revenue received in 132.36 a calendar year by a school district under section 298.28, 133.1 subdivisions 4, paragraphs (b) and (c), and 11, paragraph (d), 133.2 is fully recognized in the fiscal year in which the February 133.3 payment falls. 133.4 [EFFECTIVE DATE.] This section is effective retroactive 133.5 from July 1, 2003, for school district revenue for fiscal year 133.6 2004. 133.7 Sec. 4. Minnesota Statutes 2003 Supplement, section 133.8 124D.095, subdivision 7, is amended to read: 133.9 Subd. 7. [DEPARTMENT OF EDUCATION.] (a) The department 133.10 must review and certify on-line learning providers. The on-line 133.11 learning courses and programs must be rigorous, aligned with 133.12 state academic standards, and contribute to grade progression in 133.13 a single subject. On-line learning providers must affirm to the 133.14 commissioner that on-line learning courses have equivalent 133.15 standards or instruction, curriculum, and assessment 133.16 requirements as other courses offered to enrolled students. The 133.17 on-line learning provider must also demonstrate expectations for 133.18 actual teacher contact time or other student-to-teacher 133.19 communication. Once an on-line learning provider is approved 133.20 under this paragraph, all of its on-line learning course 133.21 offerings are eligible for payment under this section unless a 133.22 course is successfully challenged by an enrolling district or 133.23 the department under paragraph (b). 133.24 (b) An enrolling district may challenge the validity of a 133.25 course offered by an on-line learning provider. The department 133.26 must review such challenges based on the certification 133.27 procedures under paragraph (a). The department may initiate its 133.28 own review of the validity of an on-line learning course offered 133.29 by an on-line learning provider. 133.30 (c) The department may collect a fee not to exceed $250 for 133.31 certifying on-line learning providers or $50 per course for 133.32 reviewing a challenge by an enrolling district. The fee must be 133.33 deposited in the state general fund. 133.34 (d) The department must develop, publish, and maintain a 133.35 list of approved on-line learning providers and on-line learning 133.36 courses and programs that it has reviewed and certified. 134.1 [EFFECTIVE DATE.] This section is effective retroactive 134.2 from July 1, 2003. 134.3 Sec. 5. Minnesota Statutes 2003 Supplement, section 134.4 124D.11, subdivision 1, is amended to read: 134.5 Subdivision 1. [GENERAL EDUCATION REVENUE.] (a) General 134.6 education revenue must be paid to a charter school as though it 134.7 were a district. The general education revenue for each 134.8 adjusted marginal cost pupil unit is the state average general 134.9 education revenue per pupil unit, plus the referendum 134.10 equalization aid allowance in the pupil's district of residence, 134.11 minus an amount equal to the product of the formula allowance 134.12 according to section 126C.10, subdivision 2, times .0485, 134.13 calculated without basic skills revenue, extended time revenue, 134.14 transition revenue, and transportation sparsity revenue, plus 134.15 basic skills revenue and transition revenue as though the school 134.16 were a school district. The general education revenue for each 134.17 extended time marginal cost pupil unit equals $4,378. 134.18 (b) Notwithstanding paragraph (a), for charter schools in 134.19 the first year of operation, general education revenue shall be 134.20 computed using the number of adjusted pupil units in the current 134.21 fiscal year. 134.22 Sec. 6. Minnesota Statutes 2003 Supplement, section 134.23 124D.11, subdivision 2, is amended to read: 134.24 Subd. 2. [TRANSPORTATION REVENUE.] Transportation revenue 134.25 must be paid to a charter school that provides transportation 134.26 services according to section 124D.10, subdivision 16, according 134.27 to this subdivision. Transportation aid shall equal 134.28 transportation revenue. 134.29 In addition to the revenue under subdivision 1, a charter 134.30 school providing transportation services must receive (1) 134.31 general education aid for each adjusted marginal cost pupil unit 134.32 equal to the sum of an amount equal to the product of the 134.33 formula allowance according to section 126C.10, subdivision 2, 134.34 times .0485, plus the transportation sparsity allowance for the 134.35 school district in which the charter school is located and (2) 134.36 general education aid for each extended time marginal cost pupil 135.1 unit equal to the product of $223 times the school's extended 135.2 time marginal cost pupil units. 135.3 Sec. 7. Minnesota Statutes 2002, section 124D.68, 135.4 subdivision 9, is amended to read: 135.5 Subd. 9. [ENROLLMENT VERIFICATION.] (a) For a pupil 135.6 attending an eligible program full time under subdivision 3, 135.7 paragraph (d), the department must pay 90 percent of the 135.8 district's average general education revenue less basic skills 135.9 revenue to the eligible program and ten percent of the 135.10 district's average general education revenue less basic skills 135.11 revenue to the contracting district within 30 days after the 135.12 eligible program verifies enrollment using the form provided by 135.13 the department. For a pupil attending an eligible program part 135.14 time, revenue, excluding compensatory revenue, shall be reduced 135.15 proportionately, according to the amount of time the pupil 135.16 attends the program, and the payments to the eligible program 135.17 and the contracting district shall be reduced accordingly. A 135.18 pupil for whom payment is made according to this section may not 135.19 be counted by any district for any purpose other than 135.20 computation of general education revenue. If payment is made 135.21 for a pupil under this subdivision, a district shall not 135.22 reimburse a program under section 124D.69 for the same 135.23 pupil. The basic skills revenueshall be paidgenerated by 135.24 pupils attending the eligible program according to section 135.25 126C.10, subdivision 4, shall be paid to the eligible program. 135.26 (b) The department must pay up to 100 percent of the 135.27 revenue to the eligible program if there is an agreement to that 135.28 effect between the school district and the eligible program. 135.29 (c) Notwithstanding paragraphs (a) and (b), for an eligible 135.30 program that provides chemical treatment services to students, 135.31 the department must pay 100 percent of the revenue to the 135.32 eligible program. 135.33 Sec. 8. Minnesota Statutes 2002, section 124D.69, 135.34 subdivision 1, is amended to read: 135.35 Subdivision 1. [AID.] If a pupil enrolls in an alternative 135.36 program, eligible under section 124D.68, subdivision 3, 136.1 paragraph (d), or subdivision 4, operated by a private 136.2 organization that has contracted with a school district to 136.3 provide educational services for eligible pupils under section 136.4 124D.68, subdivision 2, the district contracting with the 136.5 private organization must reimburse the provider an amount equal 136.6 to the sum of (1) at least 95 percent of the district's average 136.7 general education less basic skills revenue per pupil unit times 136.8 the number of pupil units for pupils attending the program.and 136.9 (2) the amount of basic skills revenueshall be paidgenerated 136.10 by pupils attending the program according to section 126C.10, 136.11 subdivision 4.Compensatory revenue must be allocated according136.12to section 126C.15, subdivision 2.For a pupil attending the 136.13 program part time, the revenue paid to the program, excluding 136.14 compensatory revenue, must be reduced proportionately, according 136.15 to the amount of time the pupil attends the program, and revenue 136.16 paid to the district shall be reduced accordingly. Pupils for 136.17 whom a district provides reimbursement may not be counted by the 136.18 district for any purpose other than computation of general 136.19 education revenue. If payment is made to a district or program 136.20 for a pupil under this section, the department must not make a 136.21 payment for the same pupil under section 124D.68, subdivision 9. 136.22 Sec. 9. Minnesota Statutes 2002, section 126C.21, 136.23 subdivision 4, is amended to read: 136.24 Subd. 4. [TACONITE DEDUCTIONS.](1) Notwithstanding any136.25provisions of any other law to the contrary, the adjusted net136.26tax capacity used in calculating general education aid may136.27include only that property that is currently taxable in the136.28district.136.29(2)For districts thatreceived paymentshave revenue under 136.30 sections 298.018; 298.225; 298.24 to 298.28, excluding 298.26, 136.31 and 298.28, subdivision 4, paragraph (d); 298.34 to 298.39; 136.32 298.391 to 298.396; and 298.405,; 477A.15; or any law imposing a 136.33 tax upon severed mineral values;or recognized revenue under136.34section 477A.15;the general education aid must be reduced in 136.35 the final adjustment payment by (i) thedifference between the136.36dollaramount of thepayments receivedrevenue recognized 137.1 pursuant to those sections, or revenue recognized under section137.2477A.15 infor the fiscal year to which the final adjustment is 137.3 attributableand, less (ii) the amount that was calculated, 137.4 pursuant to section 126C.48, subdivision 8, as a reduction of 137.5 the levy attributable to the fiscal year to which the final 137.6 adjustment is attributable. If the final adjustment of a 137.7 district's general education aid for a fiscal year is a negative 137.8 amount because of thisclausesubdivision, the next fiscal 137.9 year's general education aid to that district must be reduced by 137.10 this negative amount in the following manner: there must be 137.11 withheld from each scheduled general education aid payment due 137.12 the district in such fiscal year, 15 percent of the total 137.13 negative amount, until the total negative amount has been 137.14 withheld. The amount reduced from general education aid 137.15 pursuant to thisclausesubdivision mustbe recognized asreduce 137.16 revenue in the fiscal year to which the final adjustment payment 137.17 is attributable. 137.18 [EFFECTIVE DATE.] This section is effective retroactive 137.19 from July 1, 2003, for school district revenue for fiscal year 137.20 2004. 137.21 Sec. 10. Minnesota Statutes 2002, section 126C.48, 137.22 subdivision 8, is amended to read: 137.23 Subd. 8. [TACONITE PAYMENT AND OTHER REDUCTIONS.] (1) 137.24 Reductions in levies pursuant to sections 126C.48, subdivision 137.25 1, and 273.138, must be made prior to the reductions in clause 137.26 (2). 137.27 (2) Notwithstanding any other law to the contrary, 137.28 districtswhich received paymentsthat have revenue pursuant to 137.29 sections 298.018; 298.225; and 298.24 to 298.28, except an 137.30 amount distributed undersectionsections 298.26; 298.28, 137.31 subdivision 4, paragraph (c), clause (ii), and paragraph (d); 137.32 298.34 to 298.39; 298.391 to 298.396; 298.405; 477A.15; and any 137.33 law imposing a tax upon severed mineral values; or recognized137.34revenue under section 477A.15 must not include a portion of137.35these aids in their permissible levies pursuant to those137.36sections, but insteadmust reduce thepermissiblelevies 138.1 authorized by this chapter and chapters 120B, 122A, 123A, 123B, 138.2 124A, 124D, 125A, and 127A bythe greater of the following:95 138.3 percent of the previous year's revenue specified under this 138.4 clause. 138.5(a) an amount equal to 50 percent of the total dollar138.6amount of the payments received pursuant to those sections or138.7revenue recognized under section 477A.15 in the previous fiscal138.8year; or138.9(b) an amount equal to the total dollar amount of the138.10payments received pursuant to those sections or revenue138.11recognized under section 477A.15 in the previous fiscal year138.12less the product of the same dollar amount of payments or138.13revenue times five percent.138.14For levy year 2002 only, 77 percent of the amounts138.15distributed under section 298.225 and 298.28, and 100 percent of138.16the amounts distributed under sections 298.018; 298.34 to138.17298.39; 298.391 to 298.396; 298.405; and any law imposing a tax138.18upon severed mineral values, or recognized revenue under section138.19477A.15, shall be used for purposes of the calculations under138.20this paragraph. For levy year 2003 only, the levy reductions138.21under this subdivision must be calculated as if section 298.28,138.22subdivision 4, paragraph (f), did not apply for the 2003138.23distribution.138.24 (3) The amount of any voter approved referendum, facilities 138.25 down payment, and debt levies shall not be reduced by more than 138.26 50 percent under this subdivision. In administering this 138.27 paragraph, the commissioner shall first reduce the nonvoter 138.28 approved levies of a district; then, if any payments, severed 138.29 mineral value tax revenue or recognized revenue under paragraph 138.30 (2) remains, the commissioner shall reduce any voter approved 138.31 referendum levies authorized under section 126C.17; then, if any 138.32 payments, severed mineral value tax revenue or recognized 138.33 revenue under paragraph (2) remains, the commissioner shall 138.34 reduce any voter approved facilities down payment levies 138.35 authorized under section 123B.63 and then, if any payments, 138.36 severed mineral value tax revenue or recognized revenue under 139.1 paragraph (2) remains, the commissioner shall reduce any voter 139.2 approved debt levies. 139.3 (4) Before computing the reduction pursuant to this 139.4 subdivision of the health and safety levy authorized by sections 139.5 123B.57 and 126C.40, subdivision 5, the commissioner shall 139.6 ascertain from each affected school district the amount it 139.7 proposes to levy under each section or subdivision. The 139.8 reduction shall be computed on the basis of the amount so 139.9 ascertained. 139.10 (5) To the extent the levy reduction calculated under 139.11 paragraph (2) exceeds the limitation in paragraph (3), an amount 139.12 equal to the excess must be distributed from the school 139.13 district's distribution under sections 298.225, 298.28, and 139.14 477A.15 in the following year to the cities and townships within 139.15 the school district in the proportion that their taxable net tax 139.16 capacity within the school district bears to the taxable net tax 139.17 capacity of the school district for property taxes payable in 139.18 the year prior to distribution. No city or township shall 139.19 receive a distribution greater than its levy for taxes payable 139.20 in the year prior to distribution. The commissioner of revenue 139.21 shall certify the distributions of cities and towns under this 139.22 paragraph to the county auditor by September 30 of the year 139.23 preceding distribution. The county auditor shall reduce the 139.24 proposed and final levies of cities and towns receiving 139.25 distributions by the amount of their distribution. 139.26 Distributions to the cities and towns shall be made at the times 139.27 provided under section 298.27. 139.28 [EFFECTIVE DATE.] This section is effective for taxes 139.29 payable in 2005. 139.30 Sec. 11. Minnesota Statutes 2003 Supplement, section 139.31 127A.47, subdivision 7, is amended to read: 139.32 Subd. 7. [ALTERNATIVE ATTENDANCE PROGRAMS.] The general 139.33 education aid for districts must be adjusted for each pupil 139.34 attending a nonresident district under sections 123A.05 to 139.35 123A.08, 124D.03, 124D.06, 124D.08, and 124D.68. The 139.36 adjustments must be made according to this subdivision. 140.1 (a) General education aid paid to a resident district must 140.2 be reduced by an amount equal to the referendum equalization aid 140.3 attributable to the pupil in the resident district. 140.4 (b) General education aid paid to a district serving a 140.5 pupil in programs listed in this subdivision must be increased 140.6 by an amount equal to the referendum equalization aid 140.7 attributable to the pupil in the nonresident district. 140.8 (c) If the amount of the reduction to be made from the 140.9 general education aid of the resident district is greater than 140.10 the amount of general education aid otherwise due the district, 140.11 the excess reduction must be made from other state aids due the 140.12 district. 140.13 (d) The district of residence must pay tuition to a 140.14 district or an area learning center, operated according to 140.15 paragraph (e), providing special instruction and services to a 140.16 pupil with a disability, as defined in section 125A.02, or a 140.17 pupil, as defined in section 125A.51, who is enrolled in a 140.18 program listed in this subdivision. The tuition must be equal 140.19 to (1) the actual cost of providing special instruction and 140.20 services to the pupil, including a proportionate amount for debt 140.21 service and for capital expenditure facilities and equipment, 140.22 and debt service but not including any amount for 140.23 transportation, minus (2) the amount of general education 140.24 revenue and special education aid but not including any amount 140.25 for transportation, attributable to that pupil, that is received 140.26 by the district providing special instruction and services. 140.27 (e) An area learning center operated by a service 140.28 cooperative, intermediate district, education district, or a 140.29 joint powers cooperative may elect through the action of the 140.30 constituent boards to charge the resident district tuition for 140.31 pupils rather than to have the general education revenue paid to 140.32 a fiscal agent school district. Except as provided in paragraph 140.33 (d), the district of residence must pay tuition equal to at 140.34 least 90 percent of the district average general education 140.35 revenue per pupil unit minus an amount equal to the product of 140.36 the formula allowance according to section 126C.10, subdivision 141.1 2, times .0485, calculated without basic skills revenue and 141.2 transportation sparsity revenue, times the number of pupil units 141.3 for pupils attending the area learning center, plus the amount 141.4 ofcompensatorybasic skills revenue generated by pupils 141.5 attending the area learning center. 141.6 Sec. 12. Minnesota Statutes 2003 Supplement, section 141.7 127A.47, subdivision 8, is amended to read: 141.8 Subd. 8. [CHARTER SCHOOLS.] (a) The general education aid 141.9 for districts must be adjusted for each pupil attending a 141.10 charter school under section 124D.10. The adjustments must be 141.11 made according to this subdivision. 141.12 (b) General education aid paid to a district in which a 141.13 charter school not providing transportation according to section 141.14 124D.10, subdivision 16, is located must be increased by an 141.15 amount equal to the sum of: 141.16 (1) the product of:(1)(i) the sum of an amount equal to 141.17 the product of the formula allowance according to section 141.18 126C.10, subdivision 2, times .0485, plus the transportation 141.19 sparsity allowance for the district; times(2)(ii) the adjusted 141.20 marginal cost pupil units attributable to the pupil, plus 141.21 (2) the product of $223 times the extended time marginal 141.22 cost pupil units attributable to the pupil. 141.23 Sec. 13. [FUND TRANSFER.] 141.24 Subdivision 1. [FOLEY.] Notwithstanding Minnesota 141.25 Statutes, section 123B.79 or 123B.80, on June 30, 2004, 141.26 Independent School District No. 51, Foley, may permanently 141.27 transfer up to $190,000 from its reserved operating capital 141.28 account in its general fund to the undesignated general fund 141.29 balance. 141.30 Subd. 2. [CHOKIO-ALBERTA.] Notwithstanding Minnesota 141.31 Statutes, section 123B.79 or 123B.80, on June 30, 2004, 141.32 Independent School District No. 771, Chokio-Alberta, may 141.33 permanently transfer up to $150,000 from its reserved operating 141.34 capital account in its general fund to the undesignated fund 141.35 balance. 141.36 Subd. 3. [KIMBALL.] Notwithstanding Minnesota Statutes, 142.1 section 123B.79 or 123B.80, on June 30, 2004, Independent School 142.2 District No. 739, Kimball, may permanently transfer up to 142.3 $150,000 from its reserved bus purchase account, or any 142.4 successor account, to its undesignated general fund balance. 142.5 Subd. 4. [MCLEOD WEST.] Notwithstanding Minnesota 142.6 Statutes, section 123B.79 or 123B.80, on June 30, 2004, 142.7 Independent School District No. 2887, McLeod West, may 142.8 permanently transfer up to $200,000 from its reserved operating 142.9 capital account in its general fund to the undesignated fund 142.10 balance. 142.11 Subd. 5. [NORTHEAST METRO.] Notwithstanding Minnesota 142.12 Statutes, sections 123B.79; 123B.80; and 475.61, subdivision 4, 142.13 on June 30, 2004, Intermediate School District No. 916, 142.14 Northeast Metro, may permanently transfer up to $240,000 from 142.15 its debt redemption fund to its capital account in its general 142.16 fund without making a levy reduction. 142.17 Subd. 6. [BUTTERFIELD.] Notwithstanding Minnesota 142.18 Statutes, section 123B.79 or 123B.80, for calendar years 2004 142.19 through 2006, on June 30 of each year, Independent School 142.20 District No. 836, Butterfield, may permanently transfer up to 142.21 $50,000 from its reserved operating capital account in its 142.22 general fund to its undesignated general fund balance and 142.23 $60,000 from its reserved bus purchase account in its general 142.24 fund to its undesignated general fund balance. The total amount 142.25 transferred for the three-year period must not total more than 142.26 $50,000 from the reserved operating capital account and $60,000 142.27 from the reserved bus purchase account. 142.28 [EFFECTIVE DATE.] This section is effective the day 142.29 following final enactment. 142.30 Sec. 14. [FORECASTING THE BASE BUDGET FOR EDUCATION.] 142.31 Notwithstanding Minnesota Statutes, section 16A.11, 142.32 subdivision 3, paragraph (b), the appropriation base for fiscal 142.33 years 2006 and 2007 for each forecast program with an 142.34 appropriation in this act or in Laws 2003, First Special Session 142.35 chapter 9, is the forecast appropriation level needed to fully 142.36 fund that program. 143.1 [EFFECTIVE DATE.] This section is effective the day 143.2 following final enactment. 143.3 ARTICLE 6 143.4 LIBRARIES 143.5 Section 1. Minnesota Statutes 2002, section 125B.15, is 143.6 amended to read: 143.7 125B.15 [INTERNET ACCESS FOR STUDENTS.] 143.8 (a) Recognizing the difference between school libraries, 143.9 school computer labs, and school media centers, which serve 143.10 unique educational purposes, and public libraries, which are 143.11 designed for public inquiry, all computers at a school site with 143.12 access to the Internet available for student use must be 143.13 equippedto restrict, including by use of availablewith 143.14 software filtering or blocking technologyor other effective143.15methods, alldesigned to restrict student access to material 143.16 that is reasonably believed to be obscene or child pornography 143.17 or material harmful to minors under federal or state law. 143.18 (b)A school site is not required to purchase filtering143.19technology if the school site would incur more than incidental143.20expense in making the purchase.143.21(c)A school district receiving technology revenueunder143.22section 125B.25must prohibit,includingthrough use of 143.23availablesoftware filtering or blocking technologyor other143.24effective methods, adult access to material that under federal 143.25 or state law is reasonably believed to be obscene or child 143.26 pornography. At the request of an adult, the district may 143.27 unblock filtered sites for bona fide research or other lawful 143.28 purpose. 143.29(d)(c) A school district, its agents or employees, are 143.30 immune from liability for failure to comply with this section if 143.31 they have made a good faith effort to comply with the 143.32 requirements of this section. 143.33(e)(d) "School site" means an education site as defined in 143.34 section 123B.04, subdivision 1, or charter school under section 143.35 124D.10. 143.36 (e) All state funds available to a school site for its 144.1 school library, school computer lab, and school media center 144.2 shall be withheld from the school site until all computers with 144.3 Internet access available for student use at the school site are 144.4 equipped with software filtering or blocking technology designed 144.5 to restrict students' access to material that is reasonably 144.6 believed to be obscene, child pornography, or material harmful 144.7 to minors under state or federal law. A school district must 144.8 formally adopt an Internet safety policy consistent with this 144.9 section and other applicable law. 144.10 (f) To ensure that state funds are not withheld under 144.11 paragraph (e), a school district must send an electronic notice 144.12 to the department indicating those school sites within the 144.13 district that have equipped their computers with software 144.14 filtering or blocking technology, consistent with this section. 144.15 A district must immediately transmit to the department any 144.16 additional information related to school sites' compliance with 144.17 this section. 144.18 [EFFECTIVE DATE.] This section is effective January 1, 2005. 144.19 Sec. 2. Minnesota Statutes 2002, section 134.31, is 144.20 amended by adding a subdivision to read: 144.21 Subd. 6. [ADVISORY COMMITTEE.] The commissioner shall 144.22 appoint an advisory committee of five members to advise the 144.23 staff of the Minnesota Library for the Blind and Physically 144.24 Handicapped on long-range planning and library services. 144.25 Members shall be people who use the library. Section 15.059 144.26 governs this committee except that the committee expires June 144.27 30, 2007. 144.28 [EFFECTIVE DATE.] This section is effective June 30, 2004. 144.29 Sec. 3. Minnesota Statutes 2002, section 134.50, is 144.30 amended to read: 144.31 134.50 [INTERNET ACCESS; LIBRARIES.] 144.32 (a) Recognizing the difference between public libraries, 144.33 which are designed for public inquiry, and school libraries, 144.34 school computer labs, and school media centers, which serve 144.35 unique educational purposes, all public library computers with 144.36 access to the Internet available for use by children under the 145.1 age of1718 must be equippedto restrict, including by use of145.2availablewith software filtering or blocking technologyor145.3other effective methods, alldesigned to restrict access by 145.4 children to material that is reasonably believed to be obscene 145.5 or child pornography or material harmful to minors under federal 145.6 or state law. 145.7 (b)A public library is not required to purchase filtering145.8technology if the public library would incur more than145.9incidental expense in making the purchase.145.10(c)A public library that receives state money must 145.11 prohibit,includingthrough the use ofavailablesoftware 145.12 filtering or blocking technologyor other effective methods, 145.13 adult access to material that under federal or state law is 145.14 reasonably believed to be obscene or child pornography. At the 145.15 request of an adult conducting bona fide research or pursuing 145.16 another lawful purpose, a public library must unblock filtered 145.17 sites without significant delay and without requiring the adult 145.18 to explain the request. A public library may remove a person 145.19 from the library if the person gains access or attempts to gain 145.20 access to materials prohibited under this sectionby145.21intentionally bypassing the filtering technology or other method145.22used by the library. 145.23(d)(c) A public library, its agents or employees, are 145.24 immune from liability for failure to comply with this section if 145.25 they have made a good faith effort to comply with the 145.26 requirements of this section. 145.27(e)(d) This section does not apply to the libraries of 145.28 postsecondary institutions. 145.29 (e) All state funds available to a public library shall be 145.30 withheld from the public library until all computers with 145.31 Internet access available for use by children under age 18 are 145.32 equipped with software filtering or blocking technology designed 145.33 to restrict children's access to material that is reasonably 145.34 believed to be obscene, child pornography, or material harmful 145.35 to minors under federal or state law. A public library must 145.36 formally adopt an Internet safety policy consistent with this 146.1 section and other applicable law. 146.2 (f) To ensure that state funds are not withheld under 146.3 paragraph (e), a public library system must send an electronic 146.4 notice to the education department indicating that the public 146.5 libraries within the system have equipped their computers with 146.6 software filtering or blocking technology, consistent with this 146.7 section. A public library system must immediately transmit to 146.8 the department any additional information related to public 146.9 libraries' compliance with this section. 146.10 [EFFECTIVE DATE.] This section is effective January 1, 2005. 146.11 Sec. 4. Laws 2003, First Special Session chapter 9, 146.12 article 6, section 4, is amended to read: 146.13 Sec. 4. [APPROPRIATIONS.] 146.14 Subdivision 1. [DEPARTMENT OF EDUCATION.] The sums 146.15 indicated in this section are appropriated from the general fund 146.16 to the department of education for the fiscal years designated. 146.17 Subd. 2. [BASIC SYSTEM SUPPORT.] For basic system support 146.18 grants under Minnesota Statutes, section 134.355: 146.19$8,072,000$8,312,000 ..... 2004 146.20 $8,570,000 ..... 2005 146.21 The 2004 appropriation includes $1,456,000 for 2003 and 146.22$6,616,000$6,856,000 for 2004. 146.23 The 2005 appropriation includes$1,654,000$1,714,000 for 146.24 2004 and$6,916,000$6,856,000 for 2005. 146.25 Subd. 3. [REGIONAL LIBRARY TELECOMMUNICATIONS AID.] For 146.26 regional library telecommunications aid under Minnesota 146.27 Statutes, section 134.355: 146.28$1,200,000$960,000 ..... 2004 146.29 $1,200,000 ..... 2005 146.30 The 2004 appropriation includes $960,000 for 2004. 146.31 The 2005 appropriation includes $240,000 for 2004 and 146.32 $960,000 for 2005. 146.33 [EFFECTIVE DATE.] This section is effective the day 146.34 following final enactment. 146.35 ARTICLE 7 146.36 EARLY CHILDHOOD PROGRAMS 147.1 Section 1. Minnesota Statutes 2002, section 124D.15, 147.2 subdivision 1, is amended to read: 147.3 Subdivision 1. [ESTABLISHMENT; PURPOSE.] A district or a 147.4 group of districts may establish a school readiness program 147.5 foreligiblechildren ages 3-1/2 years old to kindergarten 147.6 entrance. The purpose of a school readiness program is 147.7 toprovide all eligible children adequate opportunities to147.8participate in child development programs that enable the147.9children to enter school with the necessary skills and behavior147.10and family stability and support to progress and147.11flourishprepare children to enter kindergarten. 147.12 [EFFECTIVE DATE.] This section is effective for revenue for 147.13 fiscal year 2005. 147.14 Sec. 2. Minnesota Statutes 2002, section 124D.15, 147.15 subdivision 3, is amended to read: 147.16 Subd. 3. [PROGRAMELIGIBILITYREQUIREMENTS.] A school 147.17 readiness program mustinclude the following: 147.18 (1)a comprehensive plan to anticipate and meet the needs147.19of participating families by coordinating existing social147.20services programs and by fostering collaboration among agencies147.21or other community-based organizations and programs that provide147.22a full range of flexible, family-focused services to families147.23with young childrenconduct a child development assessment on 147.24 each child to guide curriculum planning and promote school 147.25 readiness. This assessment must be conducted on each child at 147.26 entrance into the program and once prior to exit of the program; 147.27 (2)a development and learning component to help children147.28develop appropriate social, cognitive, and physical skills, and147.29emotional well-being;147.30(3) health referral services to address children's medical,147.31dental, mental health, and nutritional needsinvolve parents in 147.32 program planning and decision making; 147.33(4)(3)a nutrition component to meet children's daily147.34nutritional needscoordinate with relevant community-based 147.35 services; 147.36(5)(4)parents' involvement in meeting children's148.1educational, health, social service, and other needsarrange for 148.2 early childhood screening and appropriate referral; and 148.3(6)(5)community outreach to ensure participation by148.4families who represent the racial, cultural, and economic148.5diversity of the community;148.6(7) community-based staff and program resources, including148.7interpreters, that reflect the racial and ethnic characteristics148.8of the children participating in the program; and148.9(8) a literacy component to ensure that the literacy needs148.10of parents are addressed through referral to and cooperation148.11with adult basic education programs and other adult literacy148.12programsdemonstrate use of a comprehensive curriculum based on 148.13 early childhood developmental research and professional practice 148.14 that prepares children for kindergarten. 148.15 [EFFECTIVE DATE.] This section is effective for the 148.16 2004-2005 school year. 148.17 Sec. 3. Minnesota Statutes 2002, section 124D.15, is 148.18 amended by adding a subdivision to read: 148.19 Subd. 3a. [APPLICATION AND REPORTING REQUIREMENTS.] (a) A 148.20 school readiness program must submit an annual plan to the 148.21 commissioner for approval. The plan must include evidence that 148.22 the program will meet the program requirements according to 148.23 subdivision 3. 148.24 (b) Programs receiving school readiness funds must submit 148.25 an annual report to the department before August 15 of the 148.26 following fiscal year as required by the department. 148.27 [EFFECTIVE DATE.] This section is effective the day 148.28 following final enactment. 148.29 Sec. 4. Minnesota Statutes 2002, section 124D.15, 148.30 subdivision 5, is amended to read: 148.31 Subd. 5. [SERVICES WITH NEW OR EXISTING PROVIDERS.] A 148.32 district is encouraged to contract with a public or nonprofit 148.33 organization to provide eligible children developmentally 148.34 appropriate services that meet the program requirements in 148.35 subdivision 3. In the alternative, a district may pay tuition 148.36 or fees to place an eligible child in an existing program. A 149.1 district may establish a new program where no existing, 149.2 reasonably accessible program meets the program requirements in 149.3 subdivision 3. Services may be provided in a site-based program 149.4 or in the home of the child or a combination of both. The 149.5 district may not restrict participation to district 149.6 residents. A copy of each contract must be submitted to the 149.7 commissioner with the annual plan. 149.8 [EFFECTIVE DATE.] This section is effective July 1, 2004. 149.9 Sec. 5. Minnesota Statutes 2002, section 124D.15, 149.10 subdivision 8, is amended to read: 149.11 Subd. 8. [PRIORITIZING SERVICES.] The district must give 149.12 greatest priority to providing services to eligible children 149.13 identified, through a means such as the early childhood149.14screening process,as being developmentally disadvantaged or 149.15 experiencing risk factors that could impede their school 149.16 readiness. 149.17 Sec. 6. Minnesota Statutes 2002, section 124D.15, 149.18 subdivision 10, is amended to read: 149.19 Subd. 10. [SUPERVISION.] A program provided by a board 149.20 must be supervised by a licensed early childhood teacher, a 149.21 certified early childhood educator, or a licensed parent 149.22 educator.A program provided according to a contract between a149.23district and a nonprofit organization or another private149.24organization must be supervised and staffed according to the149.25terms of the contract.149.26 [EFFECTIVE DATE.] This section is effective July 1, 2004. 149.27 Sec. 7. Minnesota Statutes 2002, section 124D.15, 149.28 subdivision 12, is amended to read: 149.29 Subd. 12. [PROGRAM FEES.] A districtmaymust adopt a 149.30 sliding fee schedule based on a family's income but must waive a 149.31 fee for a participant unable to pay.The fees charged must be149.32designed to enable eligible children of all socioeconomic levels149.33to participate in the program.149.34 [EFFECTIVE DATE.] This section is effective for revenue for 149.35 fiscal year 2005. 149.36 Sec. 8. Minnesota Statutes 2002, section 124D.16, 150.1 subdivision 2, is amended to read: 150.2 Subd. 2. [AMOUNT OF AID.] (a) A district is eligible to 150.3 receive school readiness aid if the program plan required by 150.4subdivision 1section 124D.15, subdivision 3a, has been approved 150.5 by the commissioner. 150.6 (b) For fiscal year 2002 and thereafter, a district must 150.7 receive school readiness aid equal to: 150.8 (1) the number of eligible four-year-old children in the 150.9 district on October 1 for the previous school year times the 150.10 ratio of 50 percent of the total school readiness aid for that 150.11 year to the total number of eligible four-year-old children 150.12 reported to the commissioner for the previous school year; plus 150.13 (2) the number of pupils enrolled in the school district 150.14 from families eligible for the free or reduced school lunch 150.15 program for the second previous school year times the ratio of 150.16 50 percent of the total school readiness aid for that year to 150.17 the total number of pupils in the state from families eligible 150.18 for the free or reduced school lunch program for the second 150.19 previous school year. 150.20 [EFFECTIVE DATE.] This section is effective for revenue for 150.21 fiscal year 2005. 150.22 Sec. 9. Laws 2003, First Special Session chapter 9, 150.23 article 7, section 11, subdivision 2, is amended to read: 150.24 Subd. 2. [SCHOOL READINESS.] For revenue for school 150.25 readiness programs under Minnesota Statutes, sections 124D.15 150.26 and 124D.16: 150.27 $ 9,536,000 ..... 2004 150.28$ 9,258,000$ 10,298,000 ..... 2005 150.29 The 2004 appropriation includes $1,605,000 for 2003 and 150.30 $7,931,000 for 2004. 150.31 The 2005 appropriation includes $1,982,000 for 2004 and 150.32$7,276,000$8,316,000 for 2005. 150.33 The base budget entitlement for this program is $9,095,000 150.34 for fiscal years 2006 and later. 150.35 Sec. 10. [REPEALER.] 150.36 Minnesota Statutes 2002, sections 124D.15, subdivisions 2, 151.1 4, 6, 11, and 13; and 124D.16, subdivisions 1 and 4; and 151.2 Minnesota Statutes 2003 Supplement, section 124D.15, subdivision 151.3 7, are repealed. 151.4 [EFFECTIVE DATE.] This section is effective July 1, 2004. 151.5 ARTICLE 8 151.6 PREVENTION 151.7 Section 1. Minnesota Statutes 2002, section 124D.20, is 151.8 amended by adding a subdivision to read: 151.9 Subd. 6a. [COMMUNITY EDUCATION FORMULA RESTORATION 151.10 LEVY.] In addition to the levy authorized under subdivision 5, a 151.11 school district may annually levy an amount equal to $.72 times 151.12 the greater of 1,335 or the population of the district. 151.13 [EFFECTIVE DATE.] This section is effective for taxes 151.14 payable in 2005. 151.15 Sec. 2. [EARLY RECOGNITION.] 151.16 For taxes payable in 2005 only, a school district must 151.17 recognize 50 percent of the revenue received under section 1 in 151.18 fiscal year 2005 and 50 percent of the revenue received under 151.19 section 1 in fiscal year 2006. 151.20 ARTICLE 9 151.21 SELF-SUFFICIENCY AND LIFELONG LEARNING 151.22 Section 1. Minnesota Statutes 2003 Supplement, section 151.23 119A.46, subdivision 1, is amended to read: 151.24 Subdivision 1. [DEFINITIONS.] (a) The definitions in 151.25 section 144.9501 and in this subdivision apply to this section. 151.26 (b) "Eligible organization" means a lead contractor, city, 151.27 board of health, community health department, community action 151.28 agency as defined in section 119A.374, or community development 151.29 corporation. 151.30 (c) "Commissioner" means the commissioner ofeducation151.31 health, or the commissioner of the Minnesota Housing Finance 151.32 Agency as authorized by section 462A.05, subdivision 15c. 151.33 [EFFECTIVE DATE.] This section is effective July 1, 2004. 151.34 Sec. 2. Minnesota Statutes 2002, section 119A.46, 151.35 subdivision 2, is amended to read: 151.36 Subd. 2. [GRANTS; ADMINISTRATION.] Within the limits of 152.1 the available appropriation, the commissioner must develop a 152.2 swab team services program which may make demonstration and 152.3 training grants to eligible organizations to train workers to 152.4 provide swab team services and swab team services for 152.5 residential property. Grants may be awarded to nonprofit 152.6 organizations to provide technical assistance and training to 152.7 ensure quality and consistency within the statewide program. 152.8 Grants must be awarded to help ensure full-time employment to 152.9 workers providing swab team services and must be awarded for a 152.10 two-year period. 152.11 Grants awarded under this section must be made in 152.12 consultation with thecommissionerscommissioner ofthe152.13Department ofhealth and the Housing Finance Agency, and 152.14 representatives of neighborhood groups from areas at high risk 152.15 for toxic lead exposure, a labor organization, the lead 152.16 coalition, community action agencies, and the legal aid 152.17 society. The consulting team must review grant applications and 152.18 recommend awards to eligible organizations that meet 152.19 requirements for receiving a grant under this section. 152.20 [EFFECTIVE DATE.] This section is effective July 1, 2004. 152.21 Sec. 3. Minnesota Statutes 2002, section 119A.46, 152.22 subdivision 3, is amended to read: 152.23 Subd. 3. [APPLICANTS.] (a) Interested eligible 152.24 organizations may apply to the commissioner for grants under 152.25 this section. Two or more eligible organizations may jointly 152.26 apply for a grant. Priority shall be given to community action 152.27 agencies in greater Minnesota and to either community action 152.28 agencies or neighborhood based nonprofit organizations in cities 152.29 of the first class. Of the total annual appropriation, 12.5 152.30 percent may be used for administrative purposes. The 152.31 commissioner may deviate from this percentage if a grantee can 152.32 justify the need for a larger administrative allowance. Of this 152.33 amount, up to five percent may be used by the commissioner for 152.34 state administrative purposes. Applications must provide 152.35 information requested by the commissioner, including at least 152.36 the information required to assess the factors listed in 153.1 paragraph (d). 153.2 (b) The commissioner mustcoordinate with the commissioner153.3of health who mustconsult with boards of health to provide swab 153.4 team services for purposes of secondary prevention. The 153.5 priority for swab teams created by grants to eligible 153.6 organizations under this section must be work assigned by the 153.7 commissioner of health, or by a board of health if so designated 153.8 by the commissioner of health, to provide secondary prevention 153.9 swab team services to fulfill the requirements of section 153.10 144.9504, subdivision 6, in response to a lead order. Swab 153.11 teams assigned work under this section by the commissioner, that 153.12 are not engaged daily in fulfilling the requirements of section 153.13 144.9504, subdivision 6, must deliver swab team services in 153.14 response to elevated blood lead levels as defined in section 153.15 144.9501, subdivision 9, where lead orders were not issued, and 153.16 for purposes of primary prevention in census tracts known to be 153.17 in areas at high risk for toxic lead exposure as described in 153.18 section 144.9503, subdivision 2. 153.19 (c) Any additional money must be used for grants to 153.20 establish swab teams for primary prevention under section 153.21 144.9503, in census tracts in areas at high risk for toxic lead 153.22 exposure as determined under section 144.9503, subdivision 2. 153.23 (d) In evaluating grant applications, the commissioner must 153.24 consider the following criteria: 153.25 (1) the use of lead contractors and lead workers for 153.26 residential swab team services; 153.27 (2) the participation of neighborhood groups and 153.28 individuals, as swab team workers, in areas at high risk for 153.29 toxic lead exposure; 153.30 (3) plans for the provision of swab team services for 153.31 primary and secondary prevention as required under subdivision 153.32 4; 153.33 (4) plans for supervision, training, career development, 153.34 and postprogram placement of swab team members; 153.35 (5) plans for resident and property owner education on lead 153.36 safety; 154.1 (6) plans for distributing cleaning supplies to area 154.2 residents and educating residents and property owners on 154.3 cleaning techniques; 154.4 (7) sources of other funding and cost estimates for 154.5 training, lead inspections, swab team services, equipment, 154.6 monitoring, testing, and administration; 154.7 (8) measures of program effectiveness; 154.8 (9) coordination of program activities with other federal, 154.9 state, and local public health, job training, apprenticeship, 154.10 and housing renovation programs including programs under 154.11 sections 268.86 to 268.881; and 154.12 (10) prior experience in providing swab team services. 154.13 [EFFECTIVE DATE.] This section is effective July 1, 2004. 154.14 Sec. 4. Minnesota Statutes 2002, section 119A.46, 154.15 subdivision 8, is amended to read: 154.16 Subd. 8. [TESTING AND EVALUATION.] (a) Testing of the 154.17 environment is not necessary by swab teams whose work is 154.18 assigned by the commissioner of health or a designated board of 154.19 health under section 144.9504. The commissioner of health or 154.20 designated board of health must share the analytical testing 154.21 data collected on each residence for purposes of secondary 154.22 prevention under section 144.9504 with the swab team workers in 154.23 order to provide constructive feedback on their work and to the 154.24 commissioner for the purposes set forth in paragraph (c). 154.25 (b) For purposes of primary prevention evaluation, the 154.26 following samples must be collected: pretesting and posttesting 154.27 of one noncarpeted floor dust lead sample and a notation of the 154.28 extent and location of bare soil and of deteriorated lead-based 154.29 paint. The analytical testing data collected on each residence 154.30 for purposes of primary prevention under section 144.9503 must 154.31 be shared with the swab team workers in order to provide 154.32 constructive feedback on their work and to the commissioner for 154.33 the purposes set forth in paragraph (c). 154.34 (c) The commissioner of health must establish a programin154.35cooperation with the commissionerto collect appropriate data as 154.36 required under paragraphs (a) and (b), in order to conduct an 155.1 ongoing evaluation of swab team services for primary and 155.2 secondary prevention. Within the limits of available 155.3 appropriations, the commissioner of health must conductor155.4contract with the commissioner,on up to 1,000 residences which 155.5 have received primary or secondary prevention swab team 155.6 services, a postremediation evaluation, on at least a quarterly 155.7 basis for a period of at least two years for each residence. 155.8 The evaluation must note the condition of the paint within the 155.9 residence, the extent of bare soil on the grounds, and collect 155.10 and analyze one noncarpeted floor dust lead sample. The data 155.11 collected must be evaluated to determine the efficacy of 155.12 providing swab team services as a method of reducing lead 155.13 exposure in young children. In evaluating this data, the 155.14 commissioner of health must consider city size, community 155.15 location, historic traffic flow, soil lead level of the property 155.16 by area or census tract, distance to industrial point sources 155.17 that emit lead, season of the year, age of the housing, age and 155.18 number of children living at the residence, the presence of pets 155.19 that move in and out of the residence, and other relevant 155.20 factors as the commissioner of health may determine. This 155.21 evaluation of the swab team program may be paid from amounts 155.22 appropriated to the Department of Economic Security for 155.23 providing swab team services. 155.24 [EFFECTIVE DATE.] This section is effective July 1, 2004. 155.25 Sec. 5. Minnesota Statutes 2003 Supplement, section 155.26 124D.531, subdivision 1, is amended to read: 155.27 Subdivision 1. [STATE TOTAL ADULT BASIC EDUCATION AID.] 155.28 (a) The state total adult basic education aid for fiscal year 155.29 2004 equals $34,388,000. The state total adult basic education 155.30 aid for fiscal year 2005 and later is $36,509,000 plus any 155.31 amount that is not paid for during the previous fiscal year, as 155.32 a result of adjustments under subdivision 4, paragraph (a), or 155.33 section 124D.52, subdivision 3. Beginning in fiscal year 2002, 155.34 two percent of the state total adult basic education aid must be 155.35 set aside for adult basic education supplemental service grants 155.36 under section 124D.522. 156.1 (b) The state total adult basic education aid, excluding 156.2 basic population aid, equals the difference between the amount 156.3 computed in paragraph (a), and the state total basic population 156.4 aid under subdivision 2. 156.5 [EFFECTIVE DATE.] This section is effective the day 156.6 following final enactment and applies for revenue distributions 156.7 for fiscal year 2005. 156.8 Sec. 6. Minnesota Statutes 2003 Supplement, section 156.9 124D.531, subdivision 4, is amended to read: 156.10 Subd. 4. [ADULT BASIC EDUCATION PROGRAM AID LIMIT.] (a) 156.11 Notwithstanding subdivisions 2 and 3, the total adult basic 156.12 education aid for a program per prior year contact hour must not 156.13 exceed $21 per prior year contact hour computed under 156.14 subdivision 3, clause (2). 156.15 (b) For fiscal year 2004, the aid for a program under 156.16 subdivision 3, clause (2), adjusted for changes in program 156.17 membership, must not exceed the aid for that program under 156.18 subdivision 3, clause (2), for fiscal year 2003 by more than the 156.19 greater of eight percent or $10,000. 156.20 (c) For fiscal year 2005, the aid for a program under 156.21 subdivision 3, clause (2), adjusted for changes in program 156.22 membership, must not exceed the sum of the aid for that program 156.23 under subdivision 3, clause (2), and Laws 2003, First Special 156.24 Session chapter 9, article 9, section 8, paragraph (a), for the 156.25 preceding fiscal year by more than the greater of eight percent 156.26 or $10,000. 156.27 (d) For fiscal year 2006 and later, the aid for a program 156.28 under subdivision 3, clause (2), adjusted for changes in program 156.29 membership, must not exceed the aid for that program under 156.30 subdivision 3, clause (2), for the first preceding fiscal year 156.31 by more than the greater of eight percent or $10,000. 156.32 (e) Adult basic education aid is payable to a program for 156.33 unreimbursed costs occurring in the program year as defined in 156.34 section 124D.52, subdivision 3. 156.35 (f) Any adult basic education aid that is not paid to a 156.36 program because of the program aid limitation under paragraph 157.1 (a) must be added to the state total adult basic education aid 157.2 for the next fiscal year under subdivision 1. Any adult basic 157.3 education aid that is not paid to a program because of the 157.4 program aid limitations under paragraph (b), (c), or (d) must be 157.5 reallocated among programs by adjusting the rate per contact 157.6 hour under subdivision 3, clause (2). 157.7 [EFFECTIVE DATE.] This section is effective the day 157.8 following final enactment and applies for revenue distributions 157.9 for fiscal year 2005. 157.10 Sec. 7. Laws 2003, First Special Session chapter 9, 157.11 article 9, section 9, subdivision 2, is amended to read: 157.12 Subd. 2. [ADULT BASIC EDUCATION AID.] For adult basic 157.13 education aid under Minnesota Statutes, section 124D.52, in 157.14 fiscal year 2004 and Minnesota Statutes, section 124D.531, in 157.15 fiscal year 2005: 157.16$33,153,000$33,014,000 ..... 2004 157.17$35,823,000$36,132,000 ..... 2005 157.18 The 2004 appropriation includes$5,905,000$5,827,000 for 157.19 2003 and$27,248,000$27,187,000 for 2004. 157.20 The 2005 appropriation includes$6,811,000$6,796,000 for 157.21 2004 and$29,012,000$29,336,000 for 2005. 157.22 [EFFECTIVE DATE.] This section is effective the day 157.23 following final enactment. 157.24 Sec. 8. Laws 2003, First Special Session chapter 9, 157.25 article 9, section 9, subdivision 5, is amended to read: 157.26 Subd. 5. [LEAD ABATEMENT.] For lead abatement according to 157.27 Minnesota Statutes, section 119A.46: 157.28 $ 100,000 ..... 2004 157.29$ 100,000-0- ..... 2005 157.30 Any balance in the first year does not cancel but is 157.31 available in the second year. The first year's balance, if any, 157.32 must be transferred to the Department of Health. 157.33 [EFFECTIVE DATE.] This section is effective the day 157.34 following final enactment. 157.35 Sec. 9. [REVISOR INSTRUCTION.] 157.36 In the next edition of Minnesota Statutes, the revisor of 158.1 statutes shall renumber section 119A.46 within chapter 144 and 158.2 shall appropriately revise any statutory cross-references 158.3 consistent with that renumbering. 158.4 ARTICLE 10 158.5 STATE AGENCIES 158.6 Section 1. [120B.115] [SCHOOL DISTRICT EFFICIENCY 158.7 REVIEWS.] 158.8 (a) At the written request of a school superintendent or 158.9 local school board, and to the extent state funds are 158.10 appropriated for this purpose, the commissioner of education 158.11 shall review a school district's central operations. The review 158.12 at least must: 158.13 (1) examine noninstructional expenditures; 158.14 (2) examine overhead costs, procurement practices, 158.15 facilities use and management, financial management, 158.16 transportation policies, technology planning, and energy 158.17 management; and 158.18 (3) identify opportunities for the district to improve 158.19 operational efficiencies and reduce costs. 158.20 The commissioner, at the commissioner's discretion, may 158.21 include additional areas for review. The review must not 158.22 examine the effectiveness of the educational services a district 158.23 is delivering. State and local entities must cooperate with and 158.24 assist the commissioner with a review at the request of the 158.25 commissioner. 158.26 (b) The commissioner must conduct the review within two 158.27 years of the date on which the commissioner receives the review 158.28 request and must determine the sequence, timing, and duration of 158.29 the review. The commissioner is encouraged to annually review 158.30 at least three districts in diverse locations throughout the 158.31 state. 158.32 (c) When concluding a review, the commissioner must provide 158.33 a written report of the findings, including exemplary practices 158.34 that other school districts may wish to replicate and 158.35 recommendations for improved services and greater efficiencies. 158.36 All recommendations contained in the report are advisory only 159.1 and a school district may adopt or reject the recommendations in 159.2 whole or in part. 159.3 (d) The commissioner must make public all final reports, 159.4 recommendations, related tables, and appendices. Records and 159.5 other information about identifiable school board employees are 159.6 private data on individuals and must not be disclosed. 159.7 (e) The commissioner must not seek reimbursement from a 159.8 school district or other affected local unit of government for 159.9 any costs associated with an efficiency review under this 159.10 section. 159.11 [EFFECTIVE DATE.] This section is effective July 1, 2004. 159.12 Sec. 2. Laws 2003, First Special Session chapter 9, 159.13 article 10, section 10, subdivision 2, is amended to read: 159.14 Subd. 2. [DEPARTMENT.] (a) For the department of education: 159.15 $23,653,000 ..... 2004 159.16$23,653,000$22,413,000 ..... 2005 159.17 Any balance in the first year does not cancel but is 159.18 available in the second year. 159.19 (b) $260,000 each year is for the Minnesota children's 159.20 museum. 159.21 (c) $41,000 each year is for the Minnesota academy of 159.22 science. 159.23 (d) $237,000 of the balance in the state education 159.24 courseware development account in the state government special 159.25 revenue fund as of July 1, 2004, is canceled to the general fund. 159.26 (e) $160,000 of the balance in the state item bank 159.27 revolving account in the state government special revenue fund 159.28 as of July 1, 2004, is canceled to the general fund. 159.29 (f) $621,000each yearin fiscal year 2004 and $597,000 in 159.30 fiscal year 2005 is for the board of teaching. 159.31 (g) $165,000each yearin fiscal year 2004 and $160,000 in 159.32 fiscal year 2005 is for the board of school administrators. 159.33 (h) The commissioner is encouraged to give priority 159.34 consideration to the Minnesota humanities commission when 159.35 issuing grants for professional development of teachers or 159.36 content development from best practices, Federal Title II, Part 160.1 A, Federal Title V, Part A, or other appropriate grant resources 160.2 that have a stated objective of improvement of teacher 160.3 performance. 160.4 (i) An additional $96,000 in fiscal year 2004 and $96,000 160.5 in fiscal year 2005 are appropriated from the special revenue 160.6 fund under Minnesota Statutes, section 517.08, subdivision 1c, 160.7 for family visitation centers. Any balance in the first year 160.8 does not cancel but is available for the second year. 160.9 (j) $100,000 in fiscal year 2005 is for school district 160.10 efficiency reviews under Minnesota Statutes, section 120B.115. 160.11 (k) The appropriation base for the Department of Education 160.12 is $22,727,000 for fiscal year 2006 and $22,727,000 for fiscal 160.13 year 2007. 160.14 [EFFECTIVE DATE.] This section is effective the day 160.15 following final enactment. 160.16 Sec. 3. Laws 2003, First Special Session chapter 9, 160.17 article 10, section 11, is amended to read: 160.18 Sec. 11. [APPROPRIATIONS; MINNESOTA STATE ACADEMIES.] 160.19 The sums indicated in this section are appropriated from 160.20 the general fund to the Minnesota state academies for the deaf 160.21 and the blind for the fiscal years designated: 160.22 $10,466,000 ..... 2004 160.23$10,466,000$10,340,000 ..... 2005 160.24 Any balance in the first year does not cancel but is 160.25 available in the second year. 160.26 [EFFECTIVE DATE.] This section is effective the day 160.27 following final enactment. 160.28 Sec. 4. Laws 2003, First Special Session chapter 9, 160.29 article 10, section 12, is amended to read: 160.30 Sec. 12. [APPROPRIATIONS; PERPICH CENTER FOR ARTS 160.31 EDUCATION.] 160.32 The sums indicated in this section are appropriated from 160.33 the general fund to the Perpich center for arts education for 160.34 the fiscal years designated: 160.35 $6,864,000 ..... 2004 160.36$6,423,000$6,244,000 ..... 2005 161.1 Any balance in the first year does not cancel but is 161.2 available in the second year. 161.3 [EFFECTIVE DATE.] This section is effective the day 161.4 following final enactment. 161.5 ARTICLE 11 161.6 DEFICIENCIES 161.7 Section 1. Laws 2003, First Special Session chapter 9, 161.8 article 1, section 53, subdivision 3, is amended to read: 161.9 Subd. 3. [REFERENDUM TAX BASE REPLACEMENT AID.] For 161.10 referendum tax base replacement aid under Minnesota Statutes, 161.11 section 126C.17, subdivision 7a: 161.12$ 7,841,000$8,096,000 ..... 2004 161.13$ 8,543,000$8,596,000 ..... 2005 161.14 The 2004 appropriation includes $1,419,000 for 2003 and 161.15$6,422,000$6,677,000 for 2004. 161.16 The 2005 appropriation includes$1,605,000$1,669,000 for 161.17 2004 and$6,938,000$6,927,000 for 2005. 161.18 [EFFECTIVE DATE.] This section is effective the day 161.19 following final enactment. 161.20 Sec. 2. Laws 2003, First Special Session chapter 9, 161.21 article 1, section 53, subdivision 5, is amended to read: 161.22 Subd. 5. [ABATEMENT REVENUE.] For abatement aid under 161.23 Minnesota Statutes, section 127A.49: 161.24$2,680,000$2,436,000 ..... 2004 161.25$2,937,000$1,559,000 ..... 2005 161.26 The 2004 appropriation includes $472,000 for 2003 and 161.27$2,208,000$1,964,000 for 2004. 161.28 The 2005 appropriation includes$551,000$491,000 for 2004 161.29 and$2,386,000$1,068,000 for 2005. 161.30 [EFFECTIVE DATE.] This section is effective the day 161.31 following final enactment. 161.32 Sec. 3. Laws 2003, First Special Session chapter 9, 161.33 article 1, section 53, subdivision 6, is amended to read: 161.34 Subd. 6. [CONSOLIDATION TRANSITION.] For districts 161.35 consolidating under Minnesota Statutes, section 123A.485: 161.36$207,000$ 35,000 ..... 2004 162.1$607,000$145,000 ..... 2005 162.2 The 2004 appropriation includes $35,000 for 2003 and 162.3$172,000$0 for 2004. 162.4 The 2005 appropriation includes$42,000$0 for 2004 and 162.5$565,000$145,000 for 2005. 162.6 [EFFECTIVE DATE.] This section is effective the day 162.7 following final enactment. 162.8 Sec. 4. Laws 2003, First Special Session chapter 9, 162.9 article 1, section 53, subdivision 11, is amended to read: 162.10 Subd. 11. [NONPUBLIC PUPIL AID.] For nonpublic pupil 162.11 education aid under Minnesota Statutes, sections 123B.40 to 162.12 123B.43 and 123B.87: 162.13$14,626,000$14,411,000 ..... 2004 162.14$15,594,000$15,072,000 ..... 2005 162.15 The 2004 appropriation includes $2,715,000 for 2003 and 162.16$11,911,000$11,696,000 for 2004. 162.17 The 2005 appropriation includes$2,977,000$2,923,000 for 162.18 2004 and$12,617,000$12,149,000 for 2005. 162.19 [EFFECTIVE DATE.] This section is effective the day 162.20 following final enactment. 162.21 Sec. 5. Laws 2003, First Special Session chapter 9, 162.22 article 1, section 53, subdivision 12, is amended to read: 162.23 Subd. 12. [NONPUBLIC PUPIL TRANSPORTATION.] For nonpublic 162.24 pupil transportation aid under Minnesota Statutes, section 162.25 123B.92, subdivision 9: 162.26$21,477,000$20,471,000 ..... 2004 162.27$21,982,000$21,421,000 ..... 2005 162.28 The 2004 appropriation includes $3,990,000 for 2003 and 162.29$17,487,000$16,481,000 for 2004. 162.30 The 2005 appropriation includes$4,371,000$4,120,000 for 162.31 2004 and$17,611,000$17,301,000 for 2005. 162.32 [EFFECTIVE DATE.] This section is effective the day 162.33 following final enactment. 162.34 Sec. 6. Laws 2003, First Special Session chapter 9, 162.35 article 2, section 55, subdivision 2, is amended to read: 162.36 Subd. 2. [CHARTER SCHOOL BUILDING LEASE AID.] For building 163.1 lease aid under Minnesota Statutes, section 124D.11, subdivision 163.2 4: 163.3$17,140,000$16,753,000 ..... 2004 163.4$21,018,000$21,347,000 ..... 2005 163.5 The 2004 appropriation includes $2,524,000 for 2003 and 163.6$14,616,000$14,229,000 for 2004. 163.7 The 2005 appropriation includes$3,654,000$3,557,000 for 163.8 2004 and$17,364,000$17,790,000 for 2005. 163.9 [EFFECTIVE DATE.] This section is effective the day 163.10 following final enactment. 163.11 Sec. 7. Laws 2003, First Special Session chapter 9, 163.12 article 2, section 55, subdivision 3, is amended to read: 163.13 Subd. 3. [CHARTER SCHOOL STARTUP AID.] For charter school 163.14 startup cost aid under Minnesota Statutes, section 124D.11: 163.15$824,000$844,000 ..... 2004 163.16$151,000$156,000 ..... 2005 163.17 The 2004 appropriation includes $220,000 for 2003 and 163.18$604,000$624,000 for 2004. 163.19 The 2005 appropriation includes$151,000$156,000 for 2004 163.20 and $0 for 2005. 163.21 [EFFECTIVE DATE.] This section is effective the day 163.22 following final enactment. 163.23 Sec. 8. Laws 2003, First Special Session chapter 9, 163.24 article 2, section 55, subdivision 4, is amended to read: 163.25 Subd. 4. [CHARTER SCHOOL INTEGRATION GRANTS.] For grants 163.26 to charter schools to promote integration and desegregation 163.27 under Minnesota Statutes, section 124D.11, subdivision 6, 163.28 paragraph (e): 163.29$8,000$7,000 ..... 2004 163.30 This appropriation includes$8,000$7,000 for 2003 and $0 163.31 for 2004. 163.32 [EFFECTIVE DATE.] This section is effective the day 163.33 following final enactment. 163.34 Sec. 9. Laws 2003, First Special Session chapter 9, 163.35 article 2, section 55, subdivision 7, is amended to read: 163.36 Subd. 7. [MAGNET SCHOOL STARTUP AID.] For magnet school 164.1 startup aid under Minnesota Statutes, section 124D.88: 164.2 $ 37,000 ..... 2004 164.3$454,000$ 40,000 ..... 2005 164.4 The 2004 appropriation includes $37,000 for 2003 and $0 for 164.5 2004. 164.6 The 2005 appropriation includes $0 for 2004 and$437,000164.7 $40,000 for 2005. 164.8 [EFFECTIVE DATE.] This section is effective the day 164.9 following final enactment. 164.10 Sec. 10. Laws 2003, First Special Session chapter 9, 164.11 article 2, section 55, subdivision 9, is amended to read: 164.12 Subd. 9. [SUCCESS FOR THE FUTURE.] For American Indian 164.13 success for the future grants under Minnesota Statutes, section 164.14 124D.81: 164.15$2,073,000$2,061,000 ..... 2004 164.16 $2,137,000 ..... 2005 164.17 The 2004 appropriation includes$363,000$351,000 for 2003 164.18 and $1,710,000 for 2004. 164.19 The 2005 appropriation includes $427,000 for 2004 and 164.20 $1,710,000 for 2005. 164.21 [EFFECTIVE DATE.] This section is effective the day 164.22 following final enactment. 164.23 Sec. 11. Laws 2003, First Special Session chapter 9, 164.24 article 2, section 55, subdivision 12, is amended to read: 164.25 Subd. 12. [TRIBAL CONTRACT SCHOOLS.] For tribal contract 164.26 school aid under Minnesota Statutes, section 124D.83: 164.27$2,135,000$1,617,000 ..... 2004 164.28$2,336,000$2,185,000 ..... 2005 164.29 The 2004 appropriation includes $285,000 for 2003 and 164.30$1,850,000$1,332,000 for 2004. 164.31 The 2005 appropriation includes$462,000$333,000 for 2004 164.32 and$1,874,000$1,852,000 for 2005. 164.33 [EFFECTIVE DATE.] This section is effective the day 164.34 following final enactment. 164.35 Sec. 12. Laws 2003, First Special Session chapter 9, 164.36 article 3, section 20, subdivision 4, is amended to read: 165.1 Subd. 4. [AID FOR CHILDREN WITH DISABILITIES.] For aid 165.2 under Minnesota Statutes, section 125A.75, subdivision 3, for 165.3 children with disabilities placed in residential facilities 165.4 within the district boundaries for whom no district of residence 165.5 can be determined: 165.6$2,177,000$2,311,000 ..... 2004 165.7$2,244,000$2,550,000 ..... 2005 165.8 If the appropriation for either year is insufficient, the 165.9 appropriation for the other year is available. 165.10 [EFFECTIVE DATE.] This section is effective the day 165.11 following final enactment. 165.12 Sec. 13. Laws 2003, First Special Session chapter 9, 165.13 article 3, section 20, subdivision 5, is amended to read: 165.14 Subd. 5. [TRAVEL FOR HOME-BASED SERVICES.] For aid for 165.15 teacher travel for home-based services under Minnesota Statutes, 165.16 section 125A.75, subdivision 1: 165.17$220,000$173,000 ..... 2004 165.18$261,000$178,000 ..... 2005 165.19 The 2004 appropriation includes $34,000 for 2003 and 165.20$186,000$139,000 for 2004. 165.21 The 2005 appropriation includes$46,000$34,000 for 2004 165.22 and$215,000$144,000 for 2005. 165.23 [EFFECTIVE DATE.] This section is effective the day 165.24 following final enactment. 165.25 Sec. 14. Laws 2003, First Special Session chapter 9, 165.26 article 3, section 20, subdivision 6, is amended to read: 165.27 Subd. 6. [SPECIAL EDUCATION; EXCESS COSTS.] For excess 165.28 cost aid under Minnesota Statutes, section 125A.79, subdivision 165.29 7: 165.30$92,606,000$92,605,000 ..... 2004 165.31$92,984,000$92,799,000 ..... 2005 165.32 The 2004 appropriation includes $41,754,000 for 2003 and 165.33$50,852,000$50,851,000 for 2004. 165.34 The 2005 appropriation includes$41,215,000$41,216,000 for 165.35 2004 and$51,769,000$51,583,000 for 2005. 165.36 [EFFECTIVE DATE.] This section is effective the day 166.1 following final enactment. 166.2 Sec. 15. Laws 2003, First Special Session chapter 9, 166.3 article 3, section 20, subdivision 7, is amended to read: 166.4 Subd. 7. [LITIGATION COSTS FOR SPECIAL EDUCATION.] For 166.5 paying the costs a district incurs under Minnesota Statutes, 166.6 section 125A.75, subdivision 8: 166.7$346,000$201,000 ..... 2004 166.8$ 17,000$150,000 ..... 2005 166.9 [EFFECTIVE DATE.] This section is effective the day 166.10 following final enactment. 166.11 Sec. 16. Laws 2003, First Special Session chapter 9, 166.12 article 3, section 20, subdivision 8, is amended to read: 166.13 Subd. 8. [TRANSITION FOR DISABLED STUDENTS.] For aid for 166.14 transition programs for children with disabilities under 166.15 Minnesota Statutes, section 124D.454: 166.16$8,625,000$8,570,000 ..... 2004 166.17$8,867,000$8,760,000 ..... 2005 166.18 The 2004 appropriation includes $1,516,000 for 2003 and 166.19$7,109,000$7,054,000 for 2004. 166.20 The 2005 appropriation includes$1,777,000$1,763,000 for 166.21 2004 and$7,090,000$6,997,000 for 2005. 166.22 [EFFECTIVE DATE.] This section is effective the day 166.23 following final enactment. 166.24 Sec. 17. Laws 2003, First Special Session chapter 9, 166.25 article 3, section 20, subdivision 9, is amended to read: 166.26 Subd. 9. [COURT-PLACED SPECIAL EDUCATION REVENUE.] For 166.27 reimbursing serving school districts for unreimbursed eligible 166.28 expenditures attributable to children placed in the serving 166.29 school district by court action under Minnesota Statutes, 166.30 section 125A.79, subdivision 4: 166.31$152,000$36,000 ..... 2004 166.32$160,000$61,000 ..... 2005 166.33 [EFFECTIVE DATE.] This section is effective the day 166.34 following final enactment. 166.35 Sec. 18. Laws 2003, First Special Session chapter 9, 166.36 article 4, section 31, subdivision 2, is amended to read: 167.1 Subd. 2. [HEALTH AND SAFETY REVENUE.] For health and 167.2 safety aid according to Minnesota Statutes, section 123B.57, 167.3 subdivision 5: 167.4$7,839,000$5,356,000 ..... 2004 167.5$6,068,000$1,920,000 ..... 2005 167.6 The 2004 appropriation includes $1,516,000 for 2003 and 167.7$6,323,000$3,840,000 for 2004. 167.8 The 2005 appropriation includes$1,580,000$960,000 for 167.9 2004 and$4,488,000$960,000 for 2005. 167.10 [EFFECTIVE DATE.] This section is effective the day 167.11 following final enactment. 167.12 Sec. 19. Laws 2003, First Special Session chapter 9, 167.13 article 4, section 31, subdivision 3, is amended to read: 167.14 Subd. 3. [DEBT SERVICE EQUALIZATION.] For debt service aid 167.15 according to Minnesota Statutes, section 123B.53, subdivision 6: 167.16$34,500,000$35,598,000 ..... 2004 167.17$37,575,000$31,220,000 ..... 2005 167.18 The 2004 appropriation includes $5,586,000 for 2003 and 167.19$28,914,000$30,012,000 for 2004. 167.20 The 2005 appropriation includes$7,228,000$7,503,000 for 167.21 2004 and$30,347,000$23,717,000 for 2005. 167.22 [EFFECTIVE DATE.] This section is effective the day 167.23 following final enactment. 167.24 Sec. 20. Laws 2003, First Special Session chapter 9, 167.25 article 5, section 35, subdivision 2, is amended to read: 167.26 Subd. 2. [SCHOOL LUNCH.](a)For school lunch aid 167.27 according to Minnesota Statutes, section 124D.111, and Code of 167.28 Federal Regulations, title 7, section 210.17: 167.29$7,800,000$7,650,000 ..... 2004 167.30$7,950,000$7,760,000 ..... 2005 167.31 [EFFECTIVE DATE.] This section is effective the day 167.32 following final enactment. 167.33 Sec. 21. Laws 2003, First Special Session chapter 9, 167.34 article 5, section 35, subdivision 3, is amended to read: 167.35 Subd. 3. [TRADITIONAL SCHOOL BREAKFAST; KINDERGARTEN 167.36 MILK.] For traditional school breakfast aid and kindergarten 168.1 milk under Minnesota Statutes, sections 124D.1158 and 124D.118: 168.2$3,088,000$4,382,000 ..... 2004 168.3$3,217,000$4,460,000 ..... 2005 168.4 [EFFECTIVE DATE.] This section is effective the day 168.5 following final enactment. 168.6 Sec. 22. Laws 2003, First Special Session chapter 9, 168.7 article 7, section 11, subdivision 3, is amended to read: 168.8 Subd. 3. [EARLY CHILDHOOD FAMILY EDUCATION AID.] For early 168.9 childhood family education aid under Minnesota Statutes, section 168.10 124D.135: 168.11$19,675,000$19,079,000 ..... 2004 168.12$15,129,000$14,407,000 ..... 2005 168.13 The 2004 appropriation includes $3,239,000 for 2003 and 168.14$16,436,000$15,840,000 for 2004. 168.15 The 2005 appropriation includes$4,109,000$3,959,000 for 168.16 2004 and$11,020,000$10,448,000 for 2005. 168.17 [EFFECTIVE DATE.] This section is effective the day 168.18 following final enactment. 168.19 Sec. 23. Laws 2003, First Special Session chapter 9, 168.20 article 8, section 7, subdivision 2, is amended to read: 168.21 Subd. 2. [COMMUNITY EDUCATION AID.] For community 168.22 education aid under Minnesota Statutes, section 124D.20: 168.23$5,495,000$5,351,000 ..... 2004 168.24$3,406,000$3,137,000 ..... 2005 168.25 The 2004 appropriation includes $956,000 for 2003 and 168.26$4,539,000$4,395,000 for 2004. 168.27 The 2005 appropriation includes$1,134,000$1,098,000 for 168.28 2004 and$2,272,000$2,039,000 for 2005. 168.29 [EFFECTIVE DATE.] This section is effective the day 168.30 following final enactment. 168.31 Sec. 24. Laws 2003, First Special Session chapter 9, 168.32 article 8, section 7, subdivision 5, is amended to read: 168.33 Subd. 5. [SCHOOL-AGE CARE REVENUE.] For extended day care 168.34 aid under Minnesota Statutes, section 124D.22: 168.35$41,000$40,000 ..... 2004 168.36$22,000$24,000 ..... 2005 169.1 The 2004 appropriation includes $14,000 for 2003 and 169.2$27,000$26,000 for 2004. 169.3 The 2005 appropriation includes $6,000 for 2004 and$16,000169.4 $18,000 for 2005. 169.5 [EFFECTIVE DATE.] This section is effective the day 169.6 following final enactment. 169.7 Sec. 25. [APPROPRIATIONS IN OTHER BILLS.] 169.8 The appropriations for forecast programs in this act 169.9 prevail over any other appropriations enacted during the 2004 169.10 regular legislative session for the same programs, regardless of 169.11 the date of enactment or effective date of this act and such 169.12 other appropriations. 169.13 [EFFECTIVE DATE.] This section is effective the day 169.14 following final enactment. 169.15 ARTICLE 12 169.16 TECHNICAL AND CONFORMING AMENDMENTS 169.17 Section 1. Minnesota Statutes 2003 Supplement, section 169.18 120B.021, subdivision 3, is amended to read: 169.19 Subd. 3. [RULEMAKING.](a)The commissioner, consistent 169.20 with the requirements of this section and section 120B.022, must 169.21 adopt statewide rules under section 14.389 for implementing 169.22 statewide rigorous core academic standards in language arts, 169.23 mathematics, and the arts. After the rules authorized under 169.24 this paragraph are initially adopted, the commissioner may not 169.25 amend or repeal these rules nor adopt new rules on the same 169.26 topic without specific legislative authorization. These 169.27 academic standards must be implemented for all students 169.28 beginning in the 2003-2004 school year. 169.29(b) The rules authorized under this section are not subject169.30to section 14.127.169.31 Sec. 2. Minnesota Statutes 2002, section 120B.35, is 169.32 amended by adding a subdivision to read: 169.33 Subd. 5. [IMPROVING GRADUATION RATES FOR STUDENTS WITH 169.34 EMOTIONAL OR BEHAVIORAL DISORDERS.] (a) A district must develop 169.35 strategies in conjunction with parents of students with 169.36 emotional or behavioral disorders and the county board 170.1 responsible for implementing sections 245.487 to 245.4888 to 170.2 keep students with emotional or behavioral disorders in school, 170.3 when the district has a drop-out rate for students with an 170.4 emotional or behavioral disorder in grades 9 through 12 170.5 exceeding 25 percent. 170.6 (b) A district must develop a plan in conjunction with 170.7 parents of students with emotional or behavioral disorders and 170.8 the local mental health authority to increase the graduation 170.9 rates of students with emotional or behavioral disorders. A 170.10 district with a drop-out rate for children with an emotional or 170.11 behavioral disturbance in grades 9 through 12 that is in the top 170.12 25 percent of all districts shall submit a plan for review and 170.13 oversight to the commissioner. 170.14 Sec. 3. Minnesota Statutes 2002, section 123A.442, 170.15 subdivision 2, is amended to read: 170.16 Subd. 2. [COOPERATION AND COMBINATION.] Districts that 170.17 receive a cooperative secondary facilities grant after May 1, 170.18 1991, shall: 170.19 (1) submit a plan as set forth in section 123A.36 for 170.20 approval by the State Board of Education before December 31, 170.21 1999, or Department of Education after December 30, 1999; and 170.22 (2) hold a referendum on the question of combination no 170.23 later than four years after a grant is awarded under subdivision 170.24 1. 170.25 The districts are eligible for cooperation and combination 170.26 revenue under section 123A.39, subdivision 3. 170.27 Sec. 4. Minnesota Statutes 2002, section 123A.443, 170.28 subdivision 4, is amended to read: 170.29 Subd. 4. [DISTRICT PROCEDURES.] A joint powers board of a 170.30 secondary district established under subdivision 2 or a school 170.31 board of a reorganized district that intends to apply for a 170.32 grant must adopt a resolution stating the proposed costs of the 170.33 project, the purpose for which the costs are to be incurred, and 170.34 an estimate of the dates when the facilities for which the grant 170.35 is requested will be contracted for and completed. Applications 170.36 for the state grants must be accompanied by (a) a copy of the 171.1 resolution, (b) a certificate by the clerk and treasurer of the 171.2 joint powers board showing the current outstanding indebtedness 171.3 of each member district, and (c) a certificate by the county 171.4 auditor of each county in which a portion of the joint powers 171.5 district lies showing the information in the auditor's official 171.6 records that is required to be used in computing the debt limit 171.7 of the district under section 475.53, subdivision 4. The 171.8 clerk's and treasurer's certificate must show, as to each 171.9 outstanding bond issue of each member district, the amount 171.10 originally issued, the purpose for which issued, the date of 171.11 issue, the amount remaining unpaid as of the date of the 171.12 resolution, and the interest rates and due dates and amounts of 171.13 principal thereon. Applications and necessary data must be in 171.14 the form prescribed by the commissioner and the rules of the 171.15 State Board of Education before December 31, 1999, and after 171.16 December 30, 1999, in the form prescribed by the commissioner. 171.17 Applications must be received by the commissioner by September 1 171.18 of an odd-numbered year. When an application is received, the 171.19 commissioner shall obtain from the commissioner of revenue, and 171.20 from the public utilities commission when required, the 171.21 information in their official records that is required to be 171.22 used in computing the debt limit of the joint powers district 171.23 under section 475.53, subdivision 4. 171.24 Sec. 5. Minnesota Statutes 2002, section 123A.55, is 171.25 amended to read: 171.26 123A.55 [CLASSES, NUMBER.] 171.27 Districts shall be classified as common, independent, or 171.28 special districts, each of which is a public corporation. Each 171.29 district shall be known by its classification and assigned a 171.30 number by the commissioner so that its title will be .......... 171.31 School DistrictNumberNo. ..... . 171.32 Sec. 6. Minnesota Statutes 2002, section 123B.58, 171.33 subdivision 2, is amended to read: 171.34 Subd. 2. [FIRE SAFETY MODIFICATIONS.] If a district has 171.35 insufficient money in its capital expenditure fund to make 171.36 modifications to a school building required by a fire inspection 172.1 conducted according to section123B.73299F.47, the district may 172.2 submit an application to the commissioner containing information 172.3 required by the commissioner. The commissioner shall approve or 172.4 disapprove of the application according to criteria established 172.5 by the commissioner. The criteria shall take into consideration 172.6 the cost-effectiveness of making modifications to older 172.7 buildings. 172.8 Sec. 7. Minnesota Statutes 2002, section 124D.19, 172.9 subdivision 11, is amended to read: 172.10 Subd. 11. [SCHOOL-AGE CARE PROGRAMS.] (a) A school board 172.11 may offer, as part of a community education program, a 172.12 school-age care program for children from kindergarten through 172.13 grade 6 for the purpose of expanding students' learning 172.14 opportunities. If the school board chooses not to offer a 172.15 school-age care program, it may allow an appropriate insured 172.16 community group, for profit entity or nonprofit organization to 172.17 use available school facilities for the purpose of offering a 172.18 school-age care program. 172.19 (b) A school-age care program must include the following: 172.20 (1) adult supervised programs while school is not in 172.21 session; 172.22 (2) parental involvement in program design and direction; 172.23 (3) partnerships with the kindergarten through grade 12 172.24 system, and other public, private, or nonprofit entities; 172.25 (4) opportunities for trained secondary school pupils to 172.26 work with younger children in a supervised setting as part of a 172.27 community service program; and 172.28 (5) access to available school facilities, including the 172.29 gymnasium, sports equipment, computer labs, and media centers, 172.30 when not otherwise in use as part of the operation of the 172.31 school. The school district may establish reasonable rules 172.32 relating to access to these facilities and may require that: 172.33 (i) the organization request access to the facilities and 172.34 prepare and maintain a schedule of proposed use; 172.35 (ii) the organization provide evidence of adequate 172.36 insurance to cover the activities to be conducted in the 173.1 facilities; and 173.2 (iii) the organization prepare and maintain a plan 173.3 demonstrating the adequacy and training of staff to supervise 173.4 the use of the facilities. 173.5 (c) The district may charge a sliding fee based upon family 173.6 income for school-age care programs. The district may receive 173.7 money from other public or private sources for the school-age 173.8 care program. The board of the district must develop standards 173.9 for school-age child care programs. TheState Board173.10 commissioner of education may not adopt rules for school-age 173.11 care programs. 173.12 (d) The district shall maintain a separate account within 173.13 the community services fund for all funds related to the 173.14 school-age care program. 173.15 (e) A district is encouraged to coordinate the school-age 173.16 care program with its special education, vocational education, 173.17 adult basic education, early childhood family education 173.18 programs, kindergarten through grade 12 instruction and 173.19 curriculum services, youth development and youth service 173.20 agencies, and with related services provided by other 173.21 governmental agencies and nonprofit agencies. 173.22 Sec. 8. Minnesota Statutes 2003 Supplement, section 173.23 124D.20, subdivision 11, is amended to read: 173.24 Subd. 11. [RESERVE ACCOUNT LIMIT.] (a) Under this section, 173.25 the sum of the average balances during the most recent 173.26 three-year period in a district's community education reserve 173.27 account and unreserved/undesignated community service fund 173.28 account on June 30 of each year, adjusted for any prior 173.29 reductions under this subdivision, must not be greater than 25 173.30 percent of the sum of the district's maximum total community 173.31 education revenue under subdivision 1, excluding adjustments 173.32 under this subdivision,plus the district's additional community173.33education levy under section 124D.21,plus any fees, grants, or 173.34 other revenue received by the district for community education 173.35 programs for the prior year. For purposes of this paragraph, 173.36 "community education programs" means programs according to 174.1 subdivisions 8, paragraph (a), and 9, and section 124D.19, 174.2 subdivision 12, excluding early childhood family education 174.3 programs under section 124D.13, school readiness programs under 174.4sectionssection 124D.15and 124D.17, and adult basic education 174.5 programs under section 124D.52. 174.6 (b) If the sum of the average balances during the most 174.7 recent three-year period in a district's community education 174.8 reserve account and unreserved/undesignated community service 174.9 fund account on June 30 of each year, adjusted for any prior 174.10 reductions under this subdivision, is in excess of the limit 174.11 under paragraph (a), the district's community education state 174.12 aid and levy authority for the current school year must be 174.13 reduced by the lesser of the current year revenue under 174.14 subdivision 1 or the excess reserve amount. The aid reduction 174.15 equals the product of the lesser of the excess reserve amount or 174.16 the current year revenue under subdivision 1 times the ratio of 174.17 the district's aid for the current year under subdivision 7 to 174.18 the district's revenue for the current year under subdivision 174.19 1. The levy reduction equals the excess reserve amount minus 174.20 the aid reduction. For purposes of this paragraph, if a 174.21 district does not levy the entire amount permitted under 174.22 subdivision 5 or 6, the revenue under subdivision 1 must be 174.23 reduced in proportion to the actual amount levied. 174.24 (c) Notwithstanding paragraph (a), for fiscal year 2003, 174.25 the excess reserve amount shall be computed using the balances 174.26 in a district's community education reserve account and 174.27 unreserved/undesignated community service fund account on June 174.28 30, 2002. For fiscal year 2004, the excess reserve amount shall 174.29 be computed using the adjusted average balances in a district's 174.30 community education reserve account and unreserved/undesignated 174.31 community service fund account on June 30, 2002, and June 30, 174.32 2003. 174.33 Sec. 9. Minnesota Statutes 2002, section 124D.68, 174.34 subdivision 3, is amended to read: 174.35 Subd. 3. [ELIGIBLE PROGRAMS.] (a) A pupil who is eligible 174.36 according to subdivision 2 may enroll in area learning centers 175.1 under sections 123A.05 to 123A.08, or according to section175.2122A.164. 175.3 (b) A pupil who is eligible according to subdivision 2 and 175.4 who is between the ages of 16 and 21 may enroll in postsecondary 175.5 courses under section 124D.09. 175.6 (c) A pupil who is eligible under subdivision 2, may enroll 175.7 in any public elementary or secondary education program. 175.8 However, a person who is eligible according to subdivision 2, 175.9 clause (b), may enroll only if the school board has adopted a 175.10 resolution approving the enrollment. 175.11 (d) A pupil who is eligible under subdivision 2, may enroll 175.12 in any nonpublic, nonsectarian school that has contracted with 175.13 the serving school district to provide educational services. 175.14 (e) A pupil who is between the ages of 16 and 21 may enroll 175.15 in any adult basic education programs approved under section 175.16 124D.52 and operated under the community education program 175.17 contained in section 124D.19. 175.18 Sec. 10. Minnesota Statutes 2002, section 125A.07, is 175.19 amended to read: 175.20 125A.07 [RULES OF COMMISSIONER.] 175.21 (a) As defined in this paragraph, the commissioner must 175.22 adopt rules relative to qualifications of essential personnel, 175.23 courses of study, methods of instruction, pupil eligibility, 175.24 size of classes, rooms, equipment, supervision, parent 175.25 consultation, and other necessary rules for instruction of 175.26 children with a disability. These rules must provide standards 175.27 and procedures appropriate for the implementation of and within 175.28 the limitations of sections 125A.08 and125A.09125A.091. These 175.29 rules must also provide standards for the discipline, control, 175.30 management, and protection of children with a disability. The 175.31 commissioner must not adopt rules for pupils served primarily in 175.32 the regular classroom establishing either case loads or the 175.33 maximum number of pupils that may be assigned to special 175.34 education teachers. The commissioner, in consultation with the 175.35 Departments of Health and Human Services, must adopt permanent 175.36 rules for instruction and services for children under age five 176.1 and their families. These rules are binding on state and local 176.2 education, health, and human services agencies. The 176.3 commissioner must adopt rules to determine eligibility for 176.4 special education services. The rules must include procedures 176.5 and standards by which to grant variances for experimental 176.6 eligibility criteria. The commissioner must, according to 176.7 section 14.05, subdivision 4, notify a district applying for a 176.8 variance from the rules within 45 calendar days of receiving the 176.9 request whether the request for the variance has been granted or 176.10 denied. If a request is denied, the commissioner must specify 176.11 the program standards used to evaluate the request and the 176.12 reasons for denying the request. 176.13 (b) As provided in this paragraph, the state's regulatory 176.14 scheme should support schools by assuring that all state special 176.15 education rules adopted by the commissioner result in one or 176.16 more of the following outcomes: 176.17 (1) increased time available to teachers and, where 176.18 appropriate, to support staff including school nurses for 176.19 educating students through direct and indirect instruction; 176.20 (2) consistent and uniform access to effective education 176.21 programs for students with disabilities throughout the state; 176.22 (3) reduced inequalities and conflict, appropriate due 176.23 process hearing procedures and reduced court actions related to 176.24 the delivery of special education instruction and services for 176.25 students with disabilities; 176.26 (4) clear expectations for service providers and for 176.27 students with disabilities; 176.28 (5) increased accountability for all individuals and 176.29 agencies that provide instruction and other services to students 176.30 with disabilities; 176.31 (6) greater focus for the state and local resources 176.32 dedicated to educating students with disabilities; and 176.33 (7) clearer standards for evaluating the effectiveness of 176.34 education and support services for students with disabilities. 176.35 Sec. 11. Minnesota Statutes 2003 Supplement, section 176.36 125A.091, subdivision 5, is amended to read: 177.1 Subd. 5. [INITIAL ACTION; PARENT CONSENT.] (a) The 177.2 district must not proceed with the initial evaluation of a 177.3 child, the initial placement of a child in a special education 177.4 program, or the initial provision of special education services 177.5 for a child without the prior written consent of the child's 177.6 parent. A district may not override the written refusal of a 177.7 parent to consent to an initial evaluation or reevaluation. 177.8 (b) A parent, after consulting with health care, education, 177.9 or other professional providers, may agree or disagree to 177.10 provide the parent's child with sympathomimetic medications 177.11 unless section 144.344 applies. 177.12 Sec. 12. Minnesota Statutes 2002, section 125A.46, is 177.13 amended to read: 177.14 125A.46 [DUE PROCESS HEARINGS.] 177.15 The procedures for due process hearings and appeals must be 177.16 the same as those in section125A.09125A.091. The 177.17 responsibility for payment of costs and conducting due process 177.18 hearings and appeals shall be allocated to the appropriate 177.19 agency in accordance with sections 125A.30, 125A.39, and 125A.42. 177.20 Sec. 13. Minnesota Statutes 2003 Supplement, section 177.21 125A.75, subdivision 8, is amended to read: 177.22 Subd. 8. [LITIGATION AND HEARING COSTS.] (a) For fiscal 177.23 year 1999 and thereafter, the commissioner of education, or the 177.24 commissioner's designee, shall use state funds to pay school 177.25 districts for the administrative costs of a due process hearing 177.26 incurred under section125A.09125A.091, subdivisions6, 1012, 177.27 13, and1124, including hearing officer fees, court reporter 177.28 fees, mileage costs, transcript costs, interpreter and 177.29 transliterator fees, independent evaluations ordered by the 177.30 hearing officer, and rental of hearing rooms, but not including 177.31 district attorney fees. To receive state aid under this 177.32 paragraph, a school district shall submit to the commissioner by 177.33 August 1 an itemized list of unreimbursed actual costs for fees 177.34 and other expenses under this paragraph incurred after June 30, 177.35 1998, for hearings completed during the previous fiscal year. 177.36 State funds used for aid to school districts under this 178.1 paragraph shall be based on the unreimbursed actual costs and 178.2 fees submitted by a district. 178.3 (b) The commissioner shall provide districts with a form on 178.4 which to annually report litigation costs under this section and 178.5 shall base aid estimates on preliminary reports submitted by the 178.6 district during the current fiscal year. 178.7 Sec. 14. Minnesota Statutes 2003 Supplement, section 178.8 126C.457, is amended to read: 178.9 126C.457 [CAREER AND TECHNICAL LEVY.] 178.10 A school district may levy an amount equal to the greater 178.11 of (1) $10,000, or (2) the district's fiscal year 2001 178.12 entitlement for career and technical aid under Minnesota 178.13 Statutes 2000, section 124D.453. The district must recognize 178.14 the full amount of this levy as revenue for the fiscal year in 178.15 which it is certified. Revenue received under this section must 178.16 be reserved and used only for career and technical programs. 178.17 Sec. 15. Minnesota Statutes 2003 Supplement, section 178.18 127A.41, subdivision 9, is amended to read: 178.19 Subd. 9. [APPROPRIATION TRANSFERS FOR COMMUNITY EDUCATION 178.20 PROGRAMS.] If a direct appropriation from the general fund to 178.21 the Department of Education for an education aid or grant 178.22 authorized under section 124D.135, 124D.16, 124D.20,124D.21,178.23 124D.22, 124D.52, 124D.531,124D.54,124D.55, or 124D.56 exceeds 178.24 the amount required, the commissioner of education may transfer 178.25 the excess to any education aid or grant appropriation that is 178.26 insufficiently funded under these sections. Excess 178.27 appropriations shall be allocated proportionately among aids or 178.28 grants that have insufficient appropriations. The commissioner 178.29 of finance shall make the necessary transfers among 178.30 appropriations according to the determinations of the 178.31 commissioner of education. If the amount of the direct 178.32 appropriation for the aid or grant plus the amount transferred 178.33 according to this subdivision is insufficient, the commissioner 178.34 shall prorate the available amount among eligible districts. 178.35 The state is not obligated for any additional amounts. 178.36 [EFFECTIVE DATE.] This section is effective July 1, 2004. 179.1 Sec. 16. Minnesota Statutes 2002, section 260A.01, is 179.2 amended to read: 179.3 260A.01 [TRUANCY PROGRAMS AND SERVICES.] 179.4 (a) The programs in this chapter are designed to provide a 179.5 continuum of intervention and services to support families and 179.6 children in keeping children in school and combating truancy and 179.7 educational neglect. School districts, county attorneys, and 179.8 law enforcement may establish the programs and coordinate them 179.9 with other community-based truancy services in order to provide 179.10 the necessary and most effective intervention for children and 179.11 their families. This continuum of intervention and services 179.12 involves progressively intrusive intervention, beginning with 179.13 strong service-oriented efforts at the school and community 179.14 level and involving the court's authority only when necessary. 179.15 (b) Consistent with section125A.09125A.091, subdivision3179.16 5, a parent's refusal to provide the parent's child with 179.17 sympathomimetic medications does not constitute educational 179.18 neglect. 179.19 Sec. 17. Minnesota Statutes 2002, section 260C.163, 179.20 subdivision 11, is amended to read: 179.21 Subd. 11. [PRESUMPTIONS REGARDING TRUANCY OR EDUCATIONAL 179.22 NEGLECT.] (a) A child's absence from school is presumed to be 179.23 due to the parent's, guardian's, or custodian's failure to 179.24 comply with compulsory instruction laws if the child is under 12 179.25 years old and the school has made appropriate efforts to resolve 179.26 the child's attendance problems; this presumption may be 179.27 rebutted based on a showing by clear and convincing evidence 179.28 that the child is habitually truant. A child's absence from 179.29 school without lawful excuse, when the child is 12 years old or 179.30 older, is presumed to be due to the child's intent to be absent 179.31 from school; this presumption may be rebutted based on a showing 179.32 by clear and convincing evidence that the child's absence is due 179.33 to the failure of the child's parent, guardian, or custodian to 179.34 comply with compulsory instruction laws, sections 120A.22 and 179.35 120A.24. 179.36 (b) Consistent with section125A.09125A.091, subdivision3180.1 5, a parent's refusal to provide the parent's child with 180.2 sympathomimetic medications does not constitute educational 180.3 neglect. 180.4 Sec. 18. Minnesota Statutes 2003 Supplement, section 180.5 626.556, subdivision 2, is amended to read: 180.6 Subd. 2. [DEFINITIONS.] As used in this section, the 180.7 following terms have the meanings given them unless the specific 180.8 content indicates otherwise: 180.9 (a) "Sexual abuse" means the subjection of a child by a 180.10 person responsible for the child's care, by a person who has a 180.11 significant relationship to the child, as defined in section 180.12 609.341, or by a person in a position of authority, as defined 180.13 in section 609.341, subdivision 10, to any act which constitutes 180.14 a violation of section 609.342 (criminal sexual conduct in the 180.15 first degree), 609.343 (criminal sexual conduct in the second 180.16 degree), 609.344 (criminal sexual conduct in the third degree), 180.17 609.345 (criminal sexual conduct in the fourth degree), or 180.18 609.3451 (criminal sexual conduct in the fifth degree). Sexual 180.19 abuse also includes any act which involves a minor which 180.20 constitutes a violation of prostitution offenses under sections 180.21 609.321 to 609.324 or 617.246. Sexual abuse includes threatened 180.22 sexual abuse. 180.23 (b) "Person responsible for the child's care" means (1) an 180.24 individual functioning within the family unit and having 180.25 responsibilities for the care of the child such as a parent, 180.26 guardian, or other person having similar care responsibilities, 180.27 or (2) an individual functioning outside the family unit and 180.28 having responsibilities for the care of the child such as a 180.29 teacher, school administrator, other school employees or agents, 180.30 or other lawful custodian of a child having either full-time or 180.31 short-term care responsibilities including, but not limited to, 180.32 day care, babysitting whether paid or unpaid, counseling, 180.33 teaching, and coaching. 180.34 (c) "Neglect" means: 180.35 (1) failure by a person responsible for a child's care to 180.36 supply a child with necessary food, clothing, shelter, health, 181.1 medical, or other care required for the child's physical or 181.2 mental health when reasonably able to do so; 181.3 (2) failure to protect a child from conditions or actions 181.4 that seriously endanger the child's physical or mental health 181.5 when reasonably able to do so; 181.6 (3) failure to provide for necessary supervision or child 181.7 care arrangements appropriate for a child after considering 181.8 factors as the child's age, mental ability, physical condition, 181.9 length of absence, or environment, when the child is unable to 181.10 care for the child's own basic needs or safety, or the basic 181.11 needs or safety of another child in their care; 181.12 (4) failure to ensure that the child is educated as defined 181.13 in sections 120A.22 and 260C.163, subdivision 11, which does not 181.14 include a parent's refusal to provide the parent's child with 181.15 sympathomimetic medications, consistent with section 181.16125A.09125A.091, subdivision35; 181.17 (5) nothing in this section shall be construed to mean that 181.18 a child is neglected solely because the child's parent, 181.19 guardian, or other person responsible for the child's care in 181.20 good faith selects and depends upon spiritual means or prayer 181.21 for treatment or care of disease or remedial care of the child 181.22 in lieu of medical care; except that a parent, guardian, or 181.23 caretaker, or a person mandated to report pursuant to 181.24 subdivision 3, has a duty to report if a lack of medical care 181.25 may cause serious danger to the child's health. This section 181.26 does not impose upon persons, not otherwise legally responsible 181.27 for providing a child with necessary food, clothing, shelter, 181.28 education, or medical care, a duty to provide that care; 181.29 (6) prenatal exposure to a controlled substance, as defined 181.30 in section 253B.02, subdivision 2, used by the mother for a 181.31 nonmedical purpose, as evidenced by withdrawal symptoms in the 181.32 child at birth, results of a toxicology test performed on the 181.33 mother at delivery or the child at birth, or medical effects or 181.34 developmental delays during the child's first year of life that 181.35 medically indicate prenatal exposure to a controlled substance; 181.36 (7) "medical neglect" as defined in section 260C.007, 182.1 subdivision 6, clause (5); 182.2 (8) chronic and severe use of alcohol or a controlled 182.3 substance by a parent or person responsible for the care of the 182.4 child that adversely affects the child's basic needs and safety; 182.5 or 182.6 (9) emotional harm from a pattern of behavior which 182.7 contributes to impaired emotional functioning of the child which 182.8 may be demonstrated by a substantial and observable effect in 182.9 the child's behavior, emotional response, or cognition that is 182.10 not within the normal range for the child's age and stage of 182.11 development, with due regard to the child's culture. 182.12 (d) "Physical abuse" means any physical injury, mental 182.13 injury, or threatened injury, inflicted by a person responsible 182.14 for the child's care on a child other than by accidental means, 182.15 or any physical or mental injury that cannot reasonably be 182.16 explained by the child's history of injuries, or any aversive or 182.17 deprivation procedures, or regulated interventions, that have 182.18 not been authorized under section 121A.67 or 245.825. Abuse 182.19 does not include reasonable and moderate physical discipline of 182.20 a child administered by a parent or legal guardian which does 182.21 not result in an injury. Abuse does not include the use of 182.22 reasonable force by a teacher, principal, or school employee as 182.23 allowed by section 121A.582. Actions which are not reasonable 182.24 and moderate include, but are not limited to, any of the 182.25 following that are done in anger or without regard to the safety 182.26 of the child: 182.27 (1) throwing, kicking, burning, biting, or cutting a child; 182.28 (2) striking a child with a closed fist; 182.29 (3) shaking a child under age three; 182.30 (4) striking or other actions which result in any 182.31 nonaccidental injury to a child under 18 months of age; 182.32 (5) unreasonable interference with a child's breathing; 182.33 (6) threatening a child with a weapon, as defined in 182.34 section 609.02, subdivision 6; 182.35 (7) striking a child under age one on the face or head; 182.36 (8) purposely giving a child poison, alcohol, or dangerous, 183.1 harmful, or controlled substances which were not prescribed for 183.2 the child by a practitioner, in order to control or punish the 183.3 child; or other substances that substantially affect the child's 183.4 behavior, motor coordination, or judgment or that results in 183.5 sickness or internal injury, or subjects the child to medical 183.6 procedures that would be unnecessary if the child were not 183.7 exposed to the substances; 183.8 (9) unreasonable physical confinement or restraint not 183.9 permitted under section 609.379, including but not limited to 183.10 tying, caging, or chaining; or 183.11 (10) in a school facility or school zone, an act by a 183.12 person responsible for the child's care that is a violation 183.13 under section 121A.58. 183.14 (e) "Report" means any report received by the local welfare 183.15 agency, police department, county sheriff, or agency responsible 183.16 for assessing or investigating maltreatment pursuant to this 183.17 section. 183.18 (f) "Facility" means a licensed or unlicensed day care 183.19 facility, residential facility, agency, hospital, sanitarium, or 183.20 other facility or institution required to be licensed under 183.21 sections 144.50 to 144.58, 241.021, or 245A.01 to 245A.16, or 183.22 chapter 245B; or a school as defined in sections 120A.05, 183.23 subdivisions 9, 11, and 13; and 124D.10; or a nonlicensed 183.24 personal care provider organization as defined in sections 183.25 256B.04, subdivision 16, and 256B.0625, subdivision 19a. 183.26 (g) "Operator" means an operator or agency as defined in 183.27 section 245A.02. 183.28 (h) "Commissioner" means the commissioner of human services. 183.29 (i) "Assessment" includes authority to interview the child, 183.30 the person or persons responsible for the child's care, the 183.31 alleged perpetrator, and any other person with knowledge of the 183.32 abuse or neglect for the purpose of gathering the facts, 183.33 assessing the risk to the child, and formulating a plan. 183.34 (j) "Practice of social services," for the purposes of 183.35 subdivision 3, includes but is not limited to employee 183.36 assistance counseling and the provision of guardian ad litem and 184.1 parenting time expeditor services. 184.2 (k) "Mental injury" means an injury to the psychological 184.3 capacity or emotional stability of a child as evidenced by an 184.4 observable or substantial impairment in the child's ability to 184.5 function within a normal range of performance and behavior with 184.6 due regard to the child's culture. 184.7 (l) "Threatened injury" means a statement, overt act, 184.8 condition, or status that represents a substantial risk of 184.9 physical or sexual abuse or mental injury. Threatened injury 184.10 includes, but is not limited to, exposing a child to a person 184.11 responsible for the child's care, as defined in paragraph (b), 184.12 clause (1), who has: 184.13 (1) subjected a child to, or failed to protect a child 184.14 from, an overt act or condition that constitutes egregious harm, 184.15 as defined in section 260C.007, subdivision 14, or a similar law 184.16 of another jurisdiction; 184.17 (2) been found to be palpably unfit under section 260C.301, 184.18 paragraph (b), clause (4), or a similar law of another 184.19 jurisdiction; 184.20 (3) committed an act that has resulted in an involuntary 184.21 termination of parental rights under section 260C.301, or a 184.22 similar law of another jurisdiction; or 184.23 (4) committed an act that has resulted in the involuntary 184.24 transfer of permanent legal and physical custody of a child to a 184.25 relative under section 260C.201, subdivision 11, paragraph (d), 184.26 clause (1), or a similar law of another jurisdiction. 184.27 (m) Persons who conduct assessments or investigations under 184.28 this section shall take into account accepted child-rearing 184.29 practices of the culture in which a child participates and 184.30 accepted teacher discipline practices, which are not injurious 184.31 to the child's health, welfare, and safety. 184.32 Sec. 19. Minnesota Statutes 2002, section 631.40, 184.33 subdivision 4, is amended to read: 184.34 Subd. 4. [LICENSED TEACHERS.] When a person is convicted 184.35 of child abuse, as defined in section 609.185, or sexual abuse 184.36 under section 609.342, 609.343, 609.344, 609.345, 609.3451, 185.1 subdivision 3, or 617.23, subdivision 3, the court shall 185.2 determine whether the person is licensed to teach under chapter 185.3 122A. If the offender is a licensed teacher, the court 185.4 administrator shall send a certified copy of the conviction to 185.5 the Board of Teachingor the state Board of Education, whichever185.6has jurisdiction over the teacher's license,within ten days 185.7 after the conviction. 185.8 Sec. 20. Laws 2003, chapter 130, section 12, is amended to 185.9 read: 185.10 Sec. 12. [REVISOR INSTRUCTION.] 185.11 (a) In Minnesota Statutes, the revisor shall renumber 185.12 section119A.02119A.01, subdivision 2, as 120A.02, paragraph 185.13 (a), and section 120A.02 as 120A.02, paragraph (b). 185.14 (b) In Minnesota Statutes and Minnesota Rules, the revisor 185.15 shall change the term "children, families, and learning" to 185.16 "education." 185.17 Sec. 21. [REVISOR INSTRUCTION.] 185.18 In the next edition of Minnesota Rules, chapter 3530, the 185.19 revisor shall change the term "Office of Public Libraries and 185.20 Interlibrary Cooperation" to "Library Development and Services" 185.21 and "OPLIC" to "LDS." 185.22 Sec. 22. [REPEALER; REVIVAL OF STATUTE.] 185.23 (a) Minnesota Statutes 2002, sections 124D.91 and 124D.92, 185.24 are repealed. 185.25 (b) Minnesota Statutes 2002, section 134.47, subdivision 3, 185.26 is repealed effective retroactive to June 30, 2003. 185.27 Notwithstanding Minnesota Statutes, section 645.36, Minnesota 185.28 Statutes 2002, section 134.47, subdivisions 1 and 2, are revived 185.29 effective retroactively from June 30, 2003. 185.30 ARTICLE 13 185.31 K-12 SCIENCE AND SOCIAL STUDIES STANDARDS 185.32 Section 1. Minnesota Statutes 2003 Supplement, section 185.33 120B.021, subdivision 3, is amended to read: 185.34 Subd. 3. [RULEMAKING.] (a) The commissioner, consistent 185.35 with the requirements of this section and section 120B.022, must 185.36 adopt statewide rules under section 14.389 for implementing 186.1 statewide rigorous core academic standards in language arts, 186.2 mathematics, science, social studies, and the arts. After the 186.3 rules authorized under this paragraph are initially adopted, the 186.4 commissioner may not amend or repeal these rules nor adopt new 186.5 rules on the same topic without specific legislative 186.6 authorization.TheseThe academic standards for language arts, 186.7 mathematics, and the arts must be implemented for all students 186.8 beginning in the 2003-2004 school year. The academic standards 186.9 for science must be implemented for all students beginning in 186.10 the 2004-2005 school year and the academic standards for social 186.11 studies must be implemented for all students beginning in the 186.12 2005-2006 school year. 186.13 (b) The rules authorized under this section are not subject 186.14 to section 14.127. 186.15 [EFFECTIVE DATE.] This section is effective the day 186.16 following final enactment. 186.17 Sec. 2. Minnesota Statutes 2003 Supplement, section 186.18 120B.021, is amended by adding a subdivision to read: 186.19 Subd. 4. [STATE MUST AFFIRM NO CHILD LEFT BEHIND ACT.] The 186.20 commissioner of the Minnesota Department of Education by 186.21 February 15, 2005, must nullify and revoke the consolidated 186.22 state plan submitted to the federal Department of Education for 186.23 implementing the federal No Child Left Behind Act of 2001 and 186.24 must not renew any existing contract or agreement and must not 186.25 enter into any new contract or agreement related to implementing 186.26 the federal act if: 186.27 (1) the state does not enact legislation before that date 186.28 specifically affirming Minnesota's intent to implement the 186.29 federal act; and 186.30 (2) the federal government enacts a law that abolishes the 186.31 federal Department of Education before that date. 186.32 [EFFECTIVE DATE.] This section is effective the day 186.33 following final enactment and applies to all contracts and 186.34 agreements renewed or entered into after February 15, 2005. 186.35 Sec. 3. [MINNESOTA'S HIGH ACADEMIC STANDARDS.] 186.36 (a) The standards for science and social studies adopted by 187.1 the commissioner of education under Minnesota Statutes, section 187.2 120B.021, must be identical to: 187.3 (1) the K-12 standards for science contained in the 187.4 document labeled "Minnesota Academic Standards, Science K-12, 187.5 December 19, 2003, Minnesota Academic Standards Committee, 187.6 Minnesota Department of Education"; and 187.7 (2) the K-12 standards for social studies contained in the 187.8 document labeled "Minnesota Academic Standards, Social Studies 187.9 K-12, February 17, 2004, Minnesota Academic Standards Committee, 187.10 Minnesota Department of Education." 187.11 (b) The K-12 standards documents must be deposited with the 187.12 Minnesota Revisor of Statutes, the Legislative Reference 187.13 Library, and the Minnesota State Law Library, where the 187.14 documents shall be maintained until the commissioner adopts 187.15 rules for implementing statewide rigorous core academic 187.16 standards in science and social studies under Minnesota 187.17 Statutes, section 120B.021, subdivision 3. The revisor must 187.18 determine that the rules are identical to the documents 187.19 deposited with the revisor under this section before the revisor 187.20 approves the form of the rules. In approving the form of the 187.21 rules, the revisor may make any needed grammatical and form 187.22 changes. 187.23 [EFFECTIVE DATE.] This section is effective the day 187.24 following final enactment. 187.25 Sec. 4. [K-12 SOCIAL STUDIES STANDARDS RULES.] 187.26 (a) Beginning no later than July 1, 2004, the education 187.27 commissioner shall adopt the K-12 academic social studies 187.28 standards incorporated by reference under this act using the 187.29 expedited process under Minnesota Statutes, section 14.389. 187.30 (b) In addition to technical changes, corrections, 187.31 clarifications, and similarly needed revisions, the revisor 187.32 shall modify the K-12 academic social studies standards as 187.33 indicated: 187.34 Page 10, line 4, delete "place the 4-6 standards at grade 187.35 levels that accommodate their particular curriculum, provided 187.36 that all standards have been mastered by the end of grade 6." 188.1 and insert "organize the grades 4-8 standards in one of two 188.2 ways: (1) banding grades 4-5 together and grades 6-7-8 188.3 together; or (2) banding grades 4-5-6 together and grades 7-8 188.4 together. The standards should be mastered by the end of the 188.5 highest grade in the band". 188.6 Page 13, line 4, delete "place the 4-6 standards at grade 188.7 levels that accommodate their particular curriculum, provided 188.8 that all standards have been mastered by the end of grade 6." 188.9 and insert "organize the grades 4-8 standards in one of two 188.10 ways: (1) banding grades 4-5 together and grades 6-7-8 188.11 together; or (2) banding grades 4-5-6 together and grades 7-8 188.12 together. The standards should be mastered by the end of the 188.13 highest grade in the band." 188.14 Page 18, line 4, delete "place the 4-6 standards at grade 188.15 levels that accommodate their particular curriculum, provided 188.16 that all standards have been mastered by the end of grade 6." 188.17 and insert "organize the grades 4-8 standards in one of two 188.18 ways: (1) banding grades 4-5 together and grades 6-7-8 188.19 together; or (2) banding grades 4-5-6 together and grades 7-8 188.20 together. The standards should be mastered by the end of the 188.21 highest grade in the band". 188.22 Page 19, Strand I, Sub-Strand C, delete "(1810-1860)" and 188.23 insert "(1810-1890)". 188.24 Page 19, Strand I, Sub-Strand C, Standard, delete "early". 188.25 Page 19, Strand I, Sub-Strand C, Examples 1, delete 188.26 "immigrants, influence of" and insert ", German and". 188.27 Page 20, Strand I, Sub-Strand E, Examples 3, delete 188.28 "missionaries". 188.29 Page 26, line 4, delete "place the 7-8 standards at grade 188.30 levels that accommodate their particular curriculum, provided 188.31 that all standards have been mastered by the end of grade 8." 188.32 and insert "organize the grades 4-8 standards in one of two 188.33 ways: (1) banding grades 4-5 together and grades 6-7-8 188.34 together; or (2) banding grades 4-5-6 together and grades 7-8 188.35 together. The standards should be mastered by the end of the 188.36 highest grade in the band." 189.1 Page 32, line 4, delete "place the 7-8 standards at grade 189.2 levels that accommodate their particular curriculum, provided 189.3 that all standards have been mastered by the end of grade 8." 189.4 and insert "organize the grades 4-8 standards in one of two 189.5 ways: (1) banding grades 4-5 together and grades 6-7-8 189.6 together; or (2) banding grades 4-5-6 together and grades 7-8 189.7 together. The standards should be mastered by the end of the 189.8 highest grade in the band." 189.9 [EFFECTIVE DATE.] This section is effective the day 189.10 following final enactment. 189.11 Sec. 5. [K-12 SCIENCE STANDARDS RULES.] 189.12 (a) Beginning no later than July 1, 2004, the education 189.13 commissioner shall adopt the K-12 academic science standards 189.14 incorporated by reference under this act using the expedited 189.15 process under Minnesota Statutes, section 14.389. 189.16 (b) In addition to technical changes, corrections, 189.17 clarifications, and similarly needed revisions, the revisor 189.18 shall modify the K-12 academic science standards as indicated: 189.19 Page 1, below the word "Science" in the title, insert "The 189.20 grade level designations in the Minnesota Academic Standards for 189.21 Science are strongly recommended. However, school districts may 189.22 place the (K-2, 3-5, 6-8) standards at grade levels that 189.23 accommodate their particular curriculum. The standards should 189.24 be mastered by the end of the highest grade in the band." 189.25 Page 17, Grade 9-12, Strand II, Sub-Strand A, after 189.26 Benchmarks 9, insert: 189.27 "10. The student will be able to explain how scientific 189.28 and technological innovations as well as new evidence can 189.29 challenge portions of or entire accepted theories and models 189.30 including, but not limited to, atomic theory." 189.31 Page 19, Grade 9-12, Strand III, Sub-Strand A, after 189.32 Benchmarks 7, insert: 189.33 "The student will be able to explain how scientific and 189.34 technological innovations as well as new evidence can challenge 189.35 portions of or entire accepted theories and models including, 189.36 but not limited to, plate tectonic theory and big bang theory." 190.1 Page 22, Grade 9-12, Strand IV, Sub-Strand E, Benchmarks 1, 190.2 after the period, insert: 190.3 "The student will be able to explain how scientific and 190.4 technological innovations as well as new evidence can challenge 190.5 portions of or entire accepted theories and models including, 190.6 but not limited to, cell theory, theory of evolution, and germ 190.7 theory of disease." 190.8 [EFFECTIVE DATE.] This section is effective the day 190.9 following final enactment. 190.10 ARTICLE 14 190.11 HIGHER EDUCATION 190.12 Section 1. [HIGHER EDUCATION APPROPRIATIONS.] 190.13 The sums in the columns marked "APPROPRIATIONS" are added 190.14 to, or, if shown in parentheses, are subtracted from the 190.15 appropriations in Laws 2003, chapter 133, or other law to the 190.16 specified agencies. The appropriations are from the general 190.17 fund, or other named fund, to the agencies and for the purposes 190.18 specified. The figure "2004" or "2005" means that the addition 190.19 to or subtraction from the appropriations listed under the 190.20 figure are for the fiscal year ending June 30, 2004, or June 30, 190.21 2005, respectively. If only one figure is shown in the text for 190.22 the specified purpose, the addition or subtraction is for 2004 190.23 unless the context indicates another fiscal year. 190.24 SUMMARY BY FUND 190.25 2004 2005 TOTAL 190.26 General ($ 3,600,000) ($ 3,684,000) ($ 7,284,000) 190.27 SUMMARY BY AGENCY - ALL FUNDS 190.28 2004 2005 TOTAL 190.29 Higher Education 190.30 Services Office ($ 3,600,000) ($ 3,684,000) ($ 7,284,000) 190.31 APPROPRIATIONS 190.32 Available for the Year 190.33 Ending June 30 190.34 2004 2005 190.35 Sec. 2. HIGHER EDUCATION SERVICES 190.36 OFFICE 190.37 Subdivision 1. Total Appropriation 190.38 Changes ($ 3,600,000) ($ 3,684,000) 190.39 Subd. 2. State Grants 191.1 Of the amount appropriated for the 191.2 state grant program in Laws 2003, 191.3 chapter 133, article 1, section 2, 191.4 subdivision 2, up to $400,000 may be 191.5 spent to upgrade the computer database 191.6 used to make projections for the state 191.7 grant program. This amount is 191.8 available until June 30, 2007. 191.9 Subd. 3. Child Care Grants 191.10 The Higher Education Services Office 191.11 must require postsecondary institutions 191.12 participating in the child care program 191.13 under Minnesota Statutes, section 191.14 136A.125 to obtain documentation of 191.15 child care services provided and rates 191.16 charged for each child care grant 191.17 recipient. In fiscal year 2005, the 191.18 services office must periodically 191.19 verify information provided to 191.20 institutions by child care providers. 191.21 The services office must report on the 191.22 effectiveness of the verification 191.23 process to the higher education 191.24 committees of the legislature by 191.25 February 2, 2005. 191.26 Subd. 4. Interstate Tuition 191.27 Reciprocity (3,600,000) (3,600,000) 191.28 Beginning in fiscal year 2006, the base 191.29 appropriation for this program is 191.30 $2,000,000 annually. 191.31 Subd. 5. Agency 191.32 Administration -0- (84,000) 191.33 [EFFECTIVE DATE.] This section is effective the day 191.34 following final enactment. 191.35 Sec. 3. Minnesota Statutes 2003 Supplement, section 13.46, 191.36 subdivision 2, is amended to read: 191.37 Subd. 2. [GENERAL.] (a) Unless the data is summary data or 191.38 a statute specifically provides a different classification, data 191.39 on individuals collected, maintained, used, or disseminated by 191.40 the welfare system is private data on individuals, and shall not 191.41 be disclosed except: 191.42 (1) according to section 13.05; 191.43 (2) according to court order; 191.44 (3) according to a statute specifically authorizing access 191.45 to the private data; 191.46 (4) to an agent of the welfare system, including a law 191.47 enforcement person, attorney, or investigator acting for it in 191.48 the investigation or prosecution of a criminal or civil 191.49 proceeding relating to the administration of a program; 192.1 (5) to personnel of the welfare system who require the data 192.2 to determine eligibility, amount of assistance, and the need to 192.3 provide services of additional programs to the individual; 192.4 (6) to administer federal funds or programs; 192.5 (7) between personnel of the welfare system working in the 192.6 same program; 192.7 (8) the amounts of cash public assistance and relief paid 192.8 to welfare recipients in this state, including their names, 192.9 Social Security numbers, income, addresses, and other data as 192.10 required, upon request by the Department of Revenue to 192.11 administer the property tax refund law, supplemental housing 192.12 allowance, early refund of refundable tax credits, and the 192.13 income tax. "Refundable tax credits" means the dependent care 192.14 credit under section 290.067, the Minnesota working family 192.15 credit under section 290.0671, the property tax refund under 192.16 section 290A.04, and, if the required federal waiver or waivers 192.17 are granted, the federal earned income tax credit under section 192.18 32 of the Internal Revenue Code; 192.19 (9) between the Department of Human Services, the 192.20 Department of Education, and the Department of Economic Security 192.21 for the purpose of monitoring the eligibility of the data 192.22 subject for unemployment benefits, for any employment or 192.23 training program administered, supervised, or certified by that 192.24 agency, for the purpose of administering any rehabilitation 192.25 program or child care assistance program, whether alone or in 192.26 conjunction with the welfare system, or to monitor and evaluate 192.27 the Minnesota family investment program by exchanging data on 192.28 recipients and former recipients of food support, cash 192.29 assistance under chapter 256, 256D, 256J, or 256K, child care 192.30 assistance under chapter 119B, or medical programs under chapter 192.31 256B, 256D, or 256L; 192.32 (10) to appropriate parties in connection with an emergency 192.33 if knowledge of the information is necessary to protect the 192.34 health or safety of the individual or other individuals or 192.35 persons; 192.36 (11) data maintained by residential programs as defined in 193.1 section 245A.02 may be disclosed to the protection and advocacy 193.2 system established in this state according to Part C of Public 193.3 Law 98-527 to protect the legal and human rights of persons with 193.4 mental retardation or other related conditions who live in 193.5 residential facilities for these persons if the protection and 193.6 advocacy system receives a complaint by or on behalf of that 193.7 person and the person does not have a legal guardian or the 193.8 state or a designee of the state is the legal guardian of the 193.9 person; 193.10 (12) to the county medical examiner or the county coroner 193.11 for identifying or locating relatives or friends of a deceased 193.12 person; 193.13 (13) data on a child support obligor who makes payments to 193.14 the public agency may be disclosed to the Higher Education 193.15 Services Office to the extent necessary to determine eligibility 193.16 undersectionsections 136A.121, subdivision 2, clause (5), and 193.17 136A.125, subdivision 2, clause (8); 193.18 (14) participant Social Security numbers and names 193.19 collected by the telephone assistance program may be disclosed 193.20 to the Department of Revenue to conduct an electronic data match 193.21 with the property tax refund database to determine eligibility 193.22 under section 237.70, subdivision 4a; 193.23 (15) the current address of a Minnesota family investment 193.24 program participant may be disclosed to law enforcement officers 193.25 who provide the name of the participant and notify the agency 193.26 that: 193.27 (i) the participant: 193.28 (A) is a fugitive felon fleeing to avoid prosecution, or 193.29 custody or confinement after conviction, for a crime or attempt 193.30 to commit a crime that is a felony under the laws of the 193.31 jurisdiction from which the individual is fleeing; or 193.32 (B) is violating a condition of probation or parole imposed 193.33 under state or federal law; 193.34 (ii) the location or apprehension of the felon is within 193.35 the law enforcement officer's official duties; and 193.36 (iii) the request is made in writing and in the proper 194.1 exercise of those duties; 194.2 (16) the current address of a recipient of general 194.3 assistance or general assistance medical care may be disclosed 194.4 to probation officers and corrections agents who are supervising 194.5 the recipient and to law enforcement officers who are 194.6 investigating the recipient in connection with a felony level 194.7 offense; 194.8 (17) information obtained from food support applicant or 194.9 recipient households may be disclosed to local, state, or 194.10 federal law enforcement officials, upon their written request, 194.11 for the purpose of investigating an alleged violation of the 194.12 Food Stamp Act, according to Code of Federal Regulations, title 194.13 7, section 272.1(c); 194.14 (18) the address, Social Security number, and, if 194.15 available, photograph of any member of a household receiving 194.16 food support shall be made available, on request, to a local, 194.17 state, or federal law enforcement officer if the officer 194.18 furnishes the agency with the name of the member and notifies 194.19 the agency that: 194.20 (i) the member: 194.21 (A) is fleeing to avoid prosecution, or custody or 194.22 confinement after conviction, for a crime or attempt to commit a 194.23 crime that is a felony in the jurisdiction the member is 194.24 fleeing; 194.25 (B) is violating a condition of probation or parole imposed 194.26 under state or federal law; or 194.27 (C) has information that is necessary for the officer to 194.28 conduct an official duty related to conduct described in subitem 194.29 (A) or (B); 194.30 (ii) locating or apprehending the member is within the 194.31 officer's official duties; and 194.32 (iii) the request is made in writing and in the proper 194.33 exercise of the officer's official duty; 194.34 (19) the current address of a recipient of Minnesota family 194.35 investment program, general assistance, general assistance 194.36 medical care, or food support may be disclosed to law 195.1 enforcement officers who, in writing, provide the name of the 195.2 recipient and notify the agency that the recipient is a person 195.3 required to register under section 243.166, but is not residing 195.4 at the address at which the recipient is registered under 195.5 section 243.166; 195.6 (20) certain information regarding child support obligors 195.7 who are in arrears may be made public according to section 195.8 518.575; 195.9 (21) data on child support payments made by a child support 195.10 obligor and data on the distribution of those payments excluding 195.11 identifying information on obligees may be disclosed to all 195.12 obligees to whom the obligor owes support, and data on the 195.13 enforcement actions undertaken by the public authority, the 195.14 status of those actions, and data on the income of the obligor 195.15 or obligee may be disclosed to the other party; 195.16 (22) data in the work reporting system may be disclosed 195.17 under section 256.998, subdivision 7; 195.18 (23) to the Department of Education for the purpose of 195.19 matching Department of Education student data with public 195.20 assistance data to determine students eligible for free and 195.21 reduced price meals, meal supplements, and free milk according 195.22 to United States Code, title 42, sections 1758, 1761, 1766, 195.23 1766a, 1772, and 1773; to allocate federal and state funds that 195.24 are distributed based on income of the student's family; and to 195.25 verify receipt of energy assistance for the telephone assistance 195.26 plan; 195.27 (24) the current address and telephone number of program 195.28 recipients and emergency contacts may be released to the 195.29 commissioner of health or a local board of health as defined in 195.30 section 145A.02, subdivision 2, when the commissioner or local 195.31 board of health has reason to believe that a program recipient 195.32 is a disease case, carrier, suspect case, or at risk of illness, 195.33 and the data are necessary to locate the person; 195.34 (25) to other state agencies, statewide systems, and 195.35 political subdivisions of this state, including the attorney 195.36 general, and agencies of other states, interstate information 196.1 networks, federal agencies, and other entities as required by 196.2 federal regulation or law for the administration of the child 196.3 support enforcement program; 196.4 (26) to personnel of public assistance programs as defined 196.5 in section 256.741, for access to the child support system 196.6 database for the purpose of administration, including monitoring 196.7 and evaluation of those public assistance programs; 196.8 (27) to monitor and evaluate the Minnesota family 196.9 investment program by exchanging data between the Departments of 196.10 Human Services and Education, on recipients and former 196.11 recipients of food support, cash assistance under chapter 256, 196.12 256D, 256J, or 256K, child care assistance under chapter 119B, 196.13 or medical programs under chapter 256B, 256D, or 256L; 196.14 (28) to evaluate child support program performance and to 196.15 identify and prevent fraud in the child support program by 196.16 exchanging data between the Department of Human Services, 196.17 Department of Revenue under section 270B.14, subdivision 1, 196.18 paragraphs (a) and (b), without regard to the limitation of use 196.19 in paragraph (c), Department of Health, Department of Economic 196.20 Security, and other state agencies as is reasonably necessary to 196.21 perform these functions; or 196.22 (29) counties operating child care assistance programs 196.23 under chapter 119B may disseminate data on program participants, 196.24 applicants, and providers to the commissioner of education. 196.25 (b) Information on persons who have been treated for drug 196.26 or alcohol abuse may only be disclosed according to the 196.27 requirements of Code of Federal Regulations, title 42, sections 196.28 2.1 to 2.67. 196.29 (c) Data provided to law enforcement agencies under 196.30 paragraph (a), clause (15), (16), (17), or (18), or paragraph 196.31 (b), are investigative data and are confidential or protected 196.32 nonpublic while the investigation is active. The data are 196.33 private after the investigation becomes inactive under section 196.34 13.82, subdivision 5, paragraph (a) or (b). 196.35 (d) Mental health data shall be treated as provided in 196.36 subdivisions 7, 8, and 9, but is not subject to the access 197.1 provisions of subdivision 10, paragraph (b). 197.2 For the purposes of this subdivision, a request will be 197.3 deemed to be made in writing if made through a computer 197.4 interface system. 197.5 Sec. 4. Minnesota Statutes 2003 Supplement, section 197.6 125B.21, subdivision 1, is amended to read: 197.7 Subdivision 1. [STATE COUNCIL MEMBERSHIP.] The membership 197.8 of the Minnesota Education Telecommunications Council 197.9 established in Laws 1993, First Special Session chapter 2, is 197.10 expanded to include representatives of elementary and secondary 197.11 education. The membership shall consist of three 197.12 representatives from the University of Minnesota; three 197.13 representatives of the Board of Trustees for Minnesota State 197.14 Colleges and Universities; one representative of the higher 197.15 education services offices; one representative appointed by the 197.16 Private College Council; one representative selected by the 197.17 commissioner of administration; eight representatives selected 197.18 by the commissioner of education, at least one of which must 197.19 come from each of the six higher education telecommunication 197.20 regions; a representative from the Office of Technology; two 197.21 members each from the senate and the house of representatives 197.22 selected by the Subcommittee on Committees of the Committee on 197.23 Rules and Administration of the senate and the speaker of the 197.24 house, one member from each body must be a member of the 197.25 minority party; and three representatives of libraries, one 197.26 representing regional public libraries, one representing 197.27 multitype libraries, and one representing community libraries, 197.28 selected by the governor; and two members, one selected from and 197.29 representing the higher education regional coordinators and one 197.30 selected from and representing the kindergarten through grade 12 197.31 cluster regions. The council shall serve as a forum to 197.32 establish and advocate for a statewide vision and plans for the 197.33 use of distance learning technologies, including: 197.34 (1) the coordination and collaboration of distance learning 197.35 opportunities; 197.36 (2) the implementation of the use of distance learning 198.1 technologies; 198.2 (3) the collaboration of distance learning users; 198.3 (4) the implementation of educational policy relating to 198.4 telecommunications; 198.5 (5) the exchange of ideas; 198.6 (6) the communications with state government and related 198.7 agencies and entities; 198.8 (7) the coordination of networks for postsecondary 198.9 campuses, kindergarten through grade 12 education, and regional 198.10 and community libraries; and 198.11 (8) the promotion of consistency of the operation of the 198.12 learning network with standards of an open system architecture. 198.13 The council expires June 30,20042005. 198.14 Sec. 5. [135A.157] [PENALTIES FOR RIOTING.] 198.15 If a student enrolled in a postsecondary institution is 198.16 convicted of a felony or gross misdemeanor crime as a direct 198.17 consequence of participating in a riot or criminal sexual 198.18 conduct, the student is not eligible for a state grant award 198.19 under section 136A.121 after conviction and must pay the highest 198.20 applicable tuition rate, including the nonresident tuition rate, 198.21 to attend a public postsecondary institution in subsequent 198.22 enrollment periods. The penalties under this section shall 198.23 continue for a period of one year following the date of 198.24 conviction. At the time of sentencing, the court must determine 198.25 whether the conviction was a direct consequence of participating 198.26 in a riot or criminal sexual conduct. 198.27 For the purposes of this section, "riot" means an incident 198.28 in which three or more persons assembled disturb the public 198.29 peace by an intentional act or threat of unlawful force or 198.30 violence to person or property. 198.31 [EFFECTIVE DATE.] This section is effective the day 198.32 following final enactment. 198.33 Sec. 6. Minnesota Statutes 2002, section 136A.08, is 198.34 amended by adding a subdivision to read: 198.35 Subd. 7. [REPORTING.] The Higher Education Services Office 198.36 must annually submit a report to the committees in the house of 199.1 representatives and the senate with responsibility for higher 199.2 education on (1) participation in the tuition reciprocity 199.3 program by Minnesota students and students from other states 199.4 attending Minnesota postsecondary institutions; (2) reciprocity 199.5 and resident tuition rates at each institution; and (3) 199.6 interstate payments and obligations for each state participating 199.7 in the tuition reciprocity program in the prior year. 199.8 Sec. 7. Minnesota Statutes 2002, section 136A.121, 199.9 subdivision 2, is amended to read: 199.10 Subd. 2. [ELIGIBILITY FOR GRANTS.] An applicant is 199.11 eligible to be considered for a grant, regardless of the 199.12 applicant's sex, creed, race, color, national origin, or 199.13 ancestry, under sections 136A.095 to 136A.131 if the office 199.14 finds that the applicant: 199.15 (1) is a resident of the state of Minnesota; 199.16 (2) is a graduate of a secondary school or its equivalent, 199.17 or is 17 years of age or over, and has met all requirements for 199.18 admission as a student to an eligible college or technical 199.19 college of choice as defined in sections 136A.095 to 136A.131; 199.20 (3) has met the financial need criteria established in 199.21 Minnesota Rules; 199.22 (4) is not in default, as defined by the office, of any 199.23 federal or state student educational loan; and 199.24 (5) is not more than 30 days in arrearsfor anyin 199.25 court-ordered child supportpayments owed to athat is collected 199.26 or enforced by the publicagencyauthority responsible for child 199.27 support enforcement or, if the applicant is more than 30 days in 199.28 arrears in court-ordered child support that is collected or 199.29 enforced by the public authority responsible for child support 199.30 enforcement, but is complying with a written payment 199.31 agreement under section 518.553 or order for arrearages.An199.32agreement must provide for a repayment of arrearages at no less199.33than 20 percent per month of the amount of the monthly child199.34support obligation or no less than $30 per month if there is no199.35current monthly child support obligation. Compliance means that199.36payments are made by the payment date.200.1The director and the commissioner of human services shall200.2develop procedures to implement clause (5).200.3 Sec. 8. Minnesota Statutes 2003 Supplement, section 200.4 136A.121, subdivision 9, is amended to read: 200.5 Subd. 9. [AWARDS.] An undergraduate student who meets the 200.6 office's requirements is eligible to apply for and receive a 200.7 grant in any year of undergraduate study unless the student has 200.8 obtained a baccalaureate degree or previously has been enrolled 200.9 full time or the equivalent for eight semesters or the 200.10 equivalent, excluding courses taken from a Minnesota school or 200.11 postsecondary institution which is not participating in the 200.12 state grant program and from which a student transferred no 200.13 credit. A student who withdraws from enrollment for active 200.14 military service is entitled to an additional semester of grant 200.15 eligibility. A student enrolled in a two-year program at a 200.16 four-year institution is only eligible for the tuition and fee 200.17 maximums established by law for two-year institutions. 200.18 Sec. 9. Minnesota Statutes 2002, section 136A.121, is 200.19 amended by adding a subdivision to read: 200.20 Subd. 18. [DATA.] An eligible institution must provide 200.21 student enrollment and financial aid data to the office to 200.22 enable the office to carry out its responsibilities under 200.23 section 136A.01, subdivision 2, clause (6). 200.24 Sec. 10. Minnesota Statutes 2003 Supplement, section 200.25 136A.125, subdivision 2, is amended to read: 200.26 Subd. 2. [ELIGIBLE STUDENTS.] An applicant is eligible for 200.27 a child care grant if the applicant: 200.28 (1) is a resident of the state of Minnesota; 200.29 (2) has a child 12 years of age or younger, or 14 years of 200.30 age or younger who is handicapped as defined in section 125A.02, 200.31 and who is receiving or will receive care on a regular basis 200.32 from a licensed or legal, nonlicensed caregiver; 200.33 (3) is income eligible as determined by the office's 200.34 policies and rules, but is not a recipient of assistance from 200.35 the Minnesota family investment program; 200.36 (4) has not earned a baccalaureate degree and has been 201.1 enrolled full time less than eight semesters or the equivalent; 201.2 (5) is pursuing a nonsectarian program or course of study 201.3 that applies to an undergraduate degree, diploma, or 201.4 certificate; 201.5 (6) is enrolled at least half time in an eligible 201.6 institution;and201.7 (7) is in good academic standing and making satisfactory 201.8 academic progress; and 201.9 (8) is not more than 30 days in arrears in court-ordered 201.10 child support that is collected or enforced by the public 201.11 authority responsible for child support enforcement or, if the 201.12 applicant is more than 30 days in arrears in court-ordered child 201.13 support that is collected or enforced by the public authority 201.14 responsible for child support enforcement, but is complying with 201.15 a written payment agreement under section 518.553 or order for 201.16 arrearages. 201.17 A student who withdraws from enrollment for active military 201.18 service is entitled to an additional semester of grant 201.19 eligibility. 201.20 Sec. 11. Minnesota Statutes 2003 Supplement, section 201.21 136G.11, subdivision 1, is amended to read: 201.22 Subdivision 1. [MATCHING GRANT QUALIFICATION.] By June 30 201.23 of each year, a state matching grant must be added to each 201.24 account established under the program if the following 201.25 conditions are met: 201.26 (1) the contributor applies, in writing in a form 201.27 prescribed by the director, for a matching grant; 201.28 (2) a minimum contribution of $200 was made during the 201.29 preceding calendar year;and201.30 (3) the beneficiary's family meets Minnesota College 201.31 Savings Plan residency requirements; and 201.32 (4) the family income of the beneficiary did not exceed 201.33 $80,000. 201.34 Sec. 12. Minnesota Statutes 2003 Supplement, section 201.35 136G.11, subdivision 3, is amended to read: 201.36 Subd. 3. [RESIDENCY REQUIREMENT.] (a) If the beneficiary 202.1 is under age 25, the beneficiary's parents or legal guardians 202.2 must be Minnesota residents to qualify for a matching grant. If 202.3 the beneficiary is age 25 or older, the beneficiary must be a 202.4 Minnesota resident to qualify for a matching grant. 202.5 (b) To meet the residency requirements, the parent or legal 202.6 guardian of beneficiaries under age 25 must have filed a 202.7 Minnesota individual income tax return as a Minnesota resident 202.8 and claimed the beneficiary as a dependent on the parent or 202.9 legal guardian's federal tax return for the calendar year in 202.10 which contributions were made. If the beneficiary's parents are 202.11 divorced, the parent or legal guardian claiming the beneficiary 202.12 as a dependent on the federal individual income tax return must 202.13 be a Minnesota resident. For beneficiaries age 25 or older, the 202.14 beneficiary, and a spouse, if any, must have filed a Minnesota 202.15 and a federal individual income tax return as a Minnesota 202.16 resident for the calendar year in which contributions were made. 202.17 (c) A parent of beneficiaries under age 25 and 202.18 beneficiaries age 25 or older who did not reside in Minnesota in 202.19 the calendar year in which contributions were made are not 202.20 eligible for a matching grant. 202.21 Sec. 13. Minnesota Statutes 2002, section 136G.11, is 202.22 amended by adding a subdivision to read: 202.23 Subd. 3a. [FAMILY INCOME.] (a) For purposes of this 202.24 section, "family income" means: 202.25 (1) if the beneficiary is under age 25, the combined 202.26 adjusted gross income of the beneficiary's parents or legal 202.27 guardians as reported on the federal tax return or returns for 202.28 the calendar year in which contributions were made. If the 202.29 beneficiary's parents or legal guardians are divorced, the 202.30 income of the parent claiming the beneficiary as a dependent on 202.31 the federal individual income tax return and the income of that 202.32 parent's spouse, if any, is used to determine family income; or 202.33 (2) if the beneficiary is age 25 or older, the combined 202.34 adjusted gross income of the beneficiary and spouse, if any. 202.35 (b) For a parent or legal guardian of beneficiaries under 202.36 age 25 and for beneficiaries age 25 or older who resided in 203.1 Minnesota and filed a federal individual income tax return, the 203.2 matching grant must be based on family income from the calendar 203.3 year in which contributions were made. 203.4 Sec. 14. Minnesota Statutes 2003 Supplement, section 203.5 136G.13, subdivision 1, is amended to read: 203.6 Subdivision 1. [QUALIFIED DISTRIBUTION METHODS.] (a) 203.7 Qualified distributions may be made: 203.8 (1) directly to participating eligible educational 203.9 institutions on behalf of the beneficiary;or203.10 (2) in the form of a check payable to both the beneficiary 203.11 and the eligible educational institution; or 203.12 (3) to an account owner. 203.13 (b) Qualified distributions must be withdrawn 203.14 proportionally from contributions and earnings in an account 203.15 owner's account on the date of distribution as provided in 203.16 section 529 of the Internal Revenue Code. 203.17 Sec. 15. Minnesota Statutes 2002, section 299A.45, 203.18 subdivision 4, is amended to read: 203.19 Subd. 4. [RENEWAL.] Each award must be given for one 203.20 academic year and is renewable for a maximum of eight semesters 203.21 or the equivalent. A student who withdraws from enrollment for 203.22 active military service is entitled to an additional semester of 203.23 eligibility for an award. An award must not be given to a 203.24 dependent child who is 23 years of age or older on the first day 203.25 of the academic year. 203.26 Sec. 16. [DOCTORAL DEGREES; REPORT.] 203.27 Notwithstanding Laws 2003, chapter 133, article 1, section 203.28 3, subdivision 2, or any other law to the contrary, a Minnesota 203.29 state university may prepare and submit to the legislature a 203.30 report on a plan to develop and offer applied doctoral level 203.31 programs or degrees. The report must include a cost and revenue 203.32 analysis of offering doctoral programs with a detailed account 203.33 of how the costs will be funded. If the institutions choose to 203.34 prepare the report, the report must be submitted by January 15, 203.35 2007. 203.36 Sec. 17. [TUITION RECIPROCITY; SOUTH DAKOTA.] 204.1 The Higher Education Services Office must examine the 204.2 feasibility of reinstating interstate reimbursement payments in 204.3 the Minnesota-South Dakota reciprocity program while maintaining 204.4 the tuition reciprocity agreement between the two states. The 204.5 office must examine the advantage and disadvantages of computing 204.6 interstate payments between Minnesota and South Dakota and 204.7 assess the impact on participating students, institutions 204.8 enrolling students under the reciprocity agreement, and each 204.9 state's general fund. The office must report on the feasibility 204.10 and impacts to the committees of the legislature with 204.11 responsibility for higher education finance by January 10, 2005. 204.12 Sec. 18. [APPLICATION OF ELIGIBILITY.] 204.13 The additional semester of grant eligibility under sections 204.14 8, 10, and 15 applies to any student with a state grant who 204.15 withdrew from enrollment in a postsecondary institution 204.16 beginning January 1, 2003, because the student was ordered to 204.17 active military service as defined in Minnesota Statutes, 204.18 section 190.05, subdivision 5b or 5c. 204.19 Sec. 19. [APPLICATION INFORMATION.] 204.20 The Higher Education Services Office must collect 204.21 information necessary to administer section 5 on application 204.22 forms for student aid. The Minnesota State Colleges and 204.23 Universities must collect information to administer section 5. 204.24 The University of Minnesota is requested to collect information 204.25 necessary to administer section 5. 204.26 [EFFECTIVE DATE.] This section is effective the day 204.27 following final enactment. 204.28 Sec. 20. [REPEALER.] 204.29 (a) Minnesota Statutes 2003 Supplement, section 136G.11, 204.30 subdivision 2, is repealed. 204.31 (b) Minnesota Rules, parts 4815.0100; 4815.0110; 4815.0120; 204.32 4815.0130; 4815.0140; 4815.0150; 4815.0160; 4830.8100; 204.33 4830.8110; 4830.8120; 4830.8130; 4830.8140; and 4830.8150, are 204.34 repealed.