1st Engrossment - 83rd Legislature (2003 - 2004) Posted on 12/15/2009 12:00am
Engrossments | ||
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Introduction | Posted on 03/15/2004 | |
1st Engrossment | Posted on 03/25/2004 |
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 rulemaking; appropriating 1.11 money; amending Minnesota Statutes 2002, sections 1.12 13.321, subdivision 1, by adding subdivisions; 1.13 119A.46, subdivisions 2, 3, 8; 120A.05, by adding a 1.14 subdivision; 120B.35, by adding a subdivision; 1.15 121A.22, subdivision 2; 121A.34, by adding 1.16 subdivisions; 121A.45, subdivision 3; 121A.48; 1.17 122A.06, subdivision 4; 122A.12, by adding a 1.18 subdivision; 122A.16; 122A.18, subdivision 2a, by 1.19 adding a subdivision; 122A.20, subdivision 2; 123A.05, 1.20 subdivision 2; 123A.55; 123B.02, subdivision 14; 1.21 123B.09, subdivision 8; 123B.143, subdivision 1; 1.22 123B.195; 123B.36, subdivision 1; 123B.49, subdivision 1.23 4; 123B.53, subdivision 6; 123B.71, subdivision 9; 1.24 123B.75, by adding a subdivision; 123B.76, by adding a 1.25 subdivision; 123B.82; 123B.92, subdivision 5; 124D.15, 1.26 subdivisions 1, 3, 5, 10, 12, by adding a subdivision; 1.27 124D.16, subdivision 2; 124D.19, subdivision 11; 1.28 124D.20, by adding a subdivision; 124D.59, as amended; 1.29 124D.61; 124D.68, subdivisions 3, 9; 124D.69, 1.30 subdivision 1; 125A.023, subdivision 3; 125A.03; 1.31 125A.07; 125A.22; 125A.46; 125A.51; 125A.79, 1.32 subdivisions 5, 7, by adding subdivisions; 125B.15; 1.33 126C.15, subdivision 2, by adding a subdivision; 1.34 126C.21, subdivision 4; 126C.48, subdivision 8; 1.35 127A.42, subdivisions 4, 6; 127A.45, subdivision 11; 1.36 127A.47, subdivision 3; 134.31, by adding a 1.37 subdivision; 134.50; 169.451; 171.04, subdivision 1; 1.38 171.05, subdivisions 2, 2b, 3; 171.19; 260A.03; 1.39 631.40, subdivision 4; Minnesota Statutes 2003 1.40 Supplement, sections 16A.152, subdivision 2; 119A.46, 1.41 subdivision 1; 120B.021, subdivision 3, by adding a 1.42 subdivision; 120B.024; 120B.36; 122A.09, subdivision 1.43 4; 123B.54; 123B.77, subdivision 4; 123B.92, 1.44 subdivision 1; 124D.095, subdivisions 4, 7, 8; 1.45 124D.10, subdivisions 3, 4, 8; 124D.11, subdivisions 1.46 1, 2, 9; 124D.385, subdivision 2; 124D.42, subdivision 2.1 6; 124D.454, subdivision 2; 124D.531, subdivisions 1, 2.2 4; 125A.023, subdivision 4; 125A.75, subdivision 8; 2.3 125A.79, subdivision 1; 126C.10, subdivisions 3, 31; 2.4 126C.15, subdivision 1; 126C.17, subdivision 9; 2.5 126C.40, subdivision 1; 126C.43, subdivisions 2, 3; 2.6 126C.44; 126C.63, subdivision 8; 127A.41, subdivision 2.7 9; 127A.42, subdivision 2; 127A.47, subdivisions 7, 8; 2.8 128C.05, subdivision 1a; 275.065, subdivision 1; 2.9 475.61, subdivision 4; Laws 2003, chapter 130, section 2.10 12; Laws 2003, First Special Session chapter 9, 2.11 article 1, section 53, subdivisions 2, 3, 5, 6, 11, 2.12 12; Laws 2003, First Special Session chapter 9, 2.13 article 2, section 55, subdivisions 2, 3, 4, 5, 7, 9, 2.14 12, 15, 16, 17, 19, 21, as amended; Laws 2003, First 2.15 Special Session chapter 9, article 3, section 19; Laws 2.16 2003, First Special Session chapter 9, article 3, 2.17 section 20, subdivisions 4, 5, 6, 7, 8, 9; Laws 2003, 2.18 First Special Session chapter 9, article 4, section 2.19 29; Laws 2003, First Special Session chapter 9, 2.20 article 4, section 31, subdivisions 2, 3; Laws 2003, 2.21 First Special Session chapter 9, article 5, section 2.22 35, subdivisions 2, 3; Laws 2003, First Special 2.23 Session chapter 9, article 6, section 4; Laws 2003, 2.24 First Special Session chapter 9, article 7, section 2.25 11, subdivisions 2, 3; Laws 2003, First Special 2.26 Session chapter 9, article 8, section 7, subdivisions 2.27 2, 5; Laws 2003, First Special Session chapter 9, 2.28 article 9, section 9, subdivisions 2, 5; Laws 2003, 2.29 First Special Session chapter 9, article 10, section 2.30 10, subdivision 2; Laws 2003, First Special Session 2.31 chapter 9, article 10, section 11; Laws 2003, First 2.32 Special Session chapter 9, article 10, section 12; 2.33 proposing coding for new law in Minnesota Statutes, 2.34 chapters 120A; 120B; 121A; 122A; 123B; 125B; 127A; 2.35 171; repealing Minnesota Statutes 2002, sections 2.36 124D.15, subdivisions 2, 4, 6, 8, 9, 11, 13; 124D.16, 2.37 subdivisions 1, 4; 124D.41; 124D.42, subdivisions 1, 2.38 2, 4, 5, 7; 124D.43; 126C.23; 134.47, subdivision 3; 2.39 Minnesota Statutes 2003 Supplement, sections 124D.15, 2.40 subdivision 7; 124D.42, subdivision 3. 2.41 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 2.42 ARTICLE 1 2.43 GENERAL EDUCATION 2.44 Section 1. Minnesota Statutes 2002, section 120A.05, is 2.45 amended by adding a subdivision to read: 2.46 Subd. 18. [KINDERGARTEN.] "Kindergarten" means a program 2.47 designed for pupils five years of age on September 1 of the 2.48 calendar year in which the school year commences that prepares 2.49 pupils to enter first grade the following school year. A 2.50 program designed for pupils younger than five years of age on 2.51 September 1 of the calendar year in which the school year 2.52 commences that prepares pupils to enter kindergarten the 2.53 following school year is a prekindergarten program. 2.54 [EFFECTIVE DATE.] This section is effective the day 2.55 following final enactment. 3.1 Sec. 2. [120B.124] [BASIC SKILLS INTERVENTION.] 3.2 Districts and charter schools must provide or contract for 3.3 summer school classes for all district and charter school 3.4 students in grades 9 through 12 who have not received a passing 3.5 score on a basic skills test taken by the student as required 3.6 for high school graduation under sections 120B.02 and 120B.30. 3.7 These courses must provide additional instruction in the subject 3.8 areas where students demonstrate a lack of comprehension of 3.9 specific subject matter on the basic skills tests. 3.10 [EFFECTIVE DATE.] This section is effective the day 3.11 following final enactment and applies to summer sessions 3.12 starting after June 1, 2004. 3.13 Sec. 3. Minnesota Statutes 2002, section 121A.34, is 3.14 amended by adding a subdivision to read: 3.15 Subd. 5. [BELTS AND OTHER ACCESSORIES.] Notwithstanding 3.16 any rule of the commissioner of public safety, vests, sashes, 3.17 ponchos, and Sam Browne belts worn by school safety patrol 3.18 members may be fluorescent yellow, fluorescent yellow-green, or 3.19 blaze orange. 3.20 Sec. 4. Minnesota Statutes 2002, section 121A.34, is 3.21 amended by adding a subdivision to read: 3.22 Subd. 6. [SCHOOL SAFETY PATROL FLAGS.] Notwithstanding any 3.23 rule of the commissioner of public safety, school safety patrol 3.24 flags may be (1) blaze orange with a yellow octagon bearing the 3.25 word "Stop" in black letters, or (2) fluorescent yellow or 3.26 fluorescent yellow-green with an octagon of sharply contrasting 3.27 color bearing the word "Stop" in black letters. 3.28 Sec. 5. Minnesota Statutes 2002, section 123B.76, is 3.29 amended by adding a subdivision to read: 3.30 Subd. 3. [EXPENDITURES BY BUILDING.] (a) For the purposes 3.31 of this section, "building" means education site as defined in 3.32 section 123B.04, subdivision 1. 3.33 (b) Each district shall maintain separate accounts to 3.34 identify general fund expenditures, excluding capital 3.35 expenditures and pupil transportation, for each building. All 3.36 expenditures for regular instruction, secondary vocational 4.1 instruction, and school administration must be reported to the 4.2 department separately for each building. All expenditures for 4.3 special education instruction, instructional support services, 4.4 and pupil support services provided within a specific building 4.5 must be reported to the department separately for each 4.6 building. Salary expenditures reported by building must reflect 4.7 actual salaries for staff at the building and must not be based 4.8 on districtwide averages. All other general fund expenditures 4.9 may be reported on a districtwide basis. 4.10 (c) The department must annually report information showing 4.11 school district general fund expenditures per pupil by program 4.12 category for each building and estimated school district general 4.13 fund revenue generated by pupils attending each building on its 4.14 Web site. For purposes of this report: 4.15 (1) expenditures not required to be reported by building 4.16 shall be allocated among buildings on a uniform per pupil basis; 4.17 (2) basic skills revenue shall be allocated according to 4.18 section 126C.10, subdivision 4; 4.19 (3) secondary sparsity revenue and elementary sparsity 4.20 revenue shall be allocated according to section 126C.10, 4.21 subdivisions 7 and 8; 4.22 (4) other general education revenue shall be allocated on a 4.23 uniform per pupil unit basis; 4.24 (5) first grade preparedness aid shall be allocated 4.25 according to section 124D.081; 4.26 (6) state and federal special education aid and Title I aid 4.27 shall be allocated in proportion to district expenditures for 4.28 these programs by building; and 4.29 (7) other general fund revenues shall be allocated on a 4.30 uniform per pupil basis, except that the department may allocate 4.31 other revenues attributable to specific buildings directly to 4.32 those buildings. 4.33 [EFFECTIVE DATE.] This section is effective the day 4.34 following final enactment and applies to reports for fiscal year 4.35 2004 and later. 4.36 Sec. 6. Minnesota Statutes 2003 Supplement, section 5.1 123B.77, subdivision 4, is amended to read: 5.2 Subd. 4. [BUDGET APPROVAL.] Prior to July 1 of each year, 5.3 the board of each district must approve and adopt its revenue 5.4 and expenditure budgets for the next school year. The budget 5.5 document so adopted must be considered an 5.6 expenditure-authorizing or appropriations document. No funds 5.7 shall be expended by any board or district for any purpose in 5.8 any school year prior to the adoption of the budget document 5.9 which authorizes that expenditure, or prior to an amendment to 5.10 the budget document by the board to authorize the expenditure. 5.11 Expenditures of funds in violation of this subdivision shall be 5.12 considered unlawful expenditures. Prior to the appropriation of 5.13 revenue for the next school year in the initial budget, the 5.14 board shallcalculate the general education revenue, basic5.15skills revenue, and referendum revenue for that year that it5.16estimates will be generated by the pupils in attendance at each5.17site, and shallinform the principal or other responsible 5.18 administrative authority of each site ofthat estimate and5.19report this information tothe amount of general education and 5.20 referendum revenue that the Department of Education estimates 5.21 will be generated by the pupils in attendance at each site. For 5.22 purposes of this subdivision, a district may adjust the 5.23 department's estimates for school building openings, school 5.24 building closings, changes in attendance area boundaries, or 5.25 other changes in programs or student demographics not reflected 5.26 in the department's calculations. A district must report to the 5.27 department any adjustments it makes according to this 5.28 subdivision in the department's estimates of compensatory 5.29 revenue generated by the pupils in attendance at each site, and 5.30 the department must use the adjusted compensatory revenue 5.31 estimates in preparing the report required under section 5.32 123B.76, subdivision 3, paragraph (c). 5.33 [EFFECTIVE DATE.] This section is effective the day 5.34 following final enactment and applies to reports for fiscal year 5.35 2005 and later. 5.36 Sec. 7. Minnesota Statutes 2002, section 123B.82, is 6.1 amended to read: 6.2 123B.82 [REORGANIZATION OPERATING DEBT.] 6.3 The "reorganization operating debt" of a school district 6.4 means the net negative undesignated fund balance in all school 6.5 district funds, other thancapital expenditure,building 6.6 construction, debt redemption, and trust and agency, calculated 6.7 in accordance with the uniform financial accounting and 6.8 reporting standards for Minnesota school districts as of: 6.9 (1) June 30 of the fiscal year before the first year that a 6.10 district receives revenue according to section 123A.39, 6.11 subdivision 3; or 6.12 (2) June 30 of the fiscal year before the effective date of 6.13 reorganization according to section 123A.46 or 123A.48. 6.14 [EFFECTIVE DATE.] This section is effective the day 6.15 following final enactment. 6.16 Sec. 8. Minnesota Statutes 2003 Supplement, section 6.17 123B.92, subdivision 1, is amended to read: 6.18 Subdivision 1. [DEFINITIONS.] For purposes of this section 6.19 and section 125A.76, the terms defined in this subdivision have 6.20 the meanings given to them. 6.21 (a) "Actual expenditure per pupil transported in the 6.22 regular and excess transportation categories" means the quotient 6.23 obtained by dividing: 6.24 (1) the sum of: 6.25 (i) all expenditures for transportation in the regular 6.26 category, as defined in paragraph (b), clause (1), and the 6.27 excess category, as defined in paragraph (b), clause (2), plus 6.28 (ii) an amount equal to one year's depreciation on the 6.29 district's school bus fleet and mobile units computed on a 6.30 straight line basis at the rate of 15 percent per year for 6.31 districts operating a program under section 124D.128 for grades 6.32 1 to 12 for all students in the district and 12-1/2 percent per 6.33 year for other districts of the cost of the fleet, plus 6.34 (iii) an amount equal to one year's depreciation on the 6.35 district's type three school buses, as defined in section 6.36 169.01, subdivision 6, clause (5), which must be used a majority 7.1 of the time for pupil transportation purposes, computed on a 7.2 straight line basis at the rate of 20 percent per year of the 7.3 cost of the type three school buses by: 7.4 (2) the number of pupils eligible for transportation in the 7.5 regular category, as defined in paragraph (b), clause (1), and 7.6 the excess category, as defined in paragraph (b), clause (2). 7.7 (b) "Transportation category" means a category of 7.8 transportation service provided to pupils as follows: 7.9 (1) Regular transportation is: 7.10 (i) transportation to and from school during the regular 7.11 school year for resident elementary pupils residing one mile or 7.12 more from the public or nonpublic school they attend, and 7.13 resident secondary pupils residing two miles or more from the 7.14 public or nonpublic school they attend, excluding desegregation 7.15 transportation and noon kindergarten transportation; but with 7.16 respect to transportation of pupils to and from nonpublic 7.17 schools, only to the extent permitted by sections 123B.84 to 7.18 123B.87; 7.19 (ii) transportation of resident pupils to and from language 7.20 immersion programs; 7.21 (iii) transportation of a pupil who is a custodial parent 7.22 and that pupil's child between the pupil's home and the child 7.23 care provider and between the provider and the school, if the 7.24 home and provider are within the attendance area of the school; 7.25 (iv) transportation to and from or board and lodging in 7.26 another district, of resident pupils of a district without a 7.27 secondary school; and 7.28 (v) transportation to and from school during the regular 7.29 school year required under subdivision 3 for nonresident 7.30 elementary pupils when the distance from the attendance area 7.31 border to the public school is one mile or more, and for 7.32 nonresident secondary pupils when the distance from the 7.33 attendance area border to the public school is two miles or 7.34 more, excluding desegregation transportation and noon 7.35 kindergarten transportation. 7.36 For the purposes of this paragraph, a district may 8.1 designate a licensed day care facility, respite care facility, 8.2 the residence of a relative, or the residence of a person chosen 8.3 by the pupil's parent or guardian as the home of a pupil for 8.4 part or all of the day, if requested by the pupil's parent or 8.5 guardian, and if that facility or residence is within the 8.6 attendance area of the school the pupil attends. 8.7 (2) Excess transportation is: 8.8 (i) transportation to and from school during the regular 8.9 school year for resident secondary pupils residing at least one 8.10 mile but less than two miles from the public or nonpublic school 8.11 they attend, and transportation to and from school for resident 8.12 pupils residing less than one mile from school who are 8.13 transported because of extraordinary traffic, drug, or crime 8.14 hazards; and 8.15 (ii) transportation to and from school during the regular 8.16 school year required under subdivision 3 for nonresident 8.17 secondary pupils when the distance from the attendance area 8.18 border to the school is at least one mile but less than two 8.19 miles from the public school they attend, and for nonresident 8.20 pupils when the distance from the attendance area border to the 8.21 school is less than one mile from the school and who are 8.22 transported because of extraordinary traffic, drug, or crime 8.23 hazards. 8.24 (3) Desegregation transportation is transportation within 8.25 and outside of the district during the regular school year of 8.26 pupils to and from schools located outside their normal 8.27 attendance areas under a plan for desegregation mandated by the 8.28 commissioner or under court order. 8.29 (4) "Transportation services for pupils with disabilities" 8.30 is: 8.31 (i) transportation of pupils with disabilities who cannot 8.32 be transported on a regular school bus between home or a respite 8.33 care facility and school; 8.34 (ii) necessary transportation of pupils with disabilities 8.35 from home or from school to other buildings, including centers 8.36 such as developmental achievement centers, hospitals, and 9.1 treatment centers where special instruction or services required 9.2 by sections 125A.03 to 125A.24, 125A.26 to 125A.48, and 125A.65 9.3 are provided, within or outside the district where services are 9.4 provided; 9.5 (iii) necessary transportation for resident pupils with 9.6 disabilities required by sections 125A.12, and 125A.26 to 9.7 125A.48; 9.8 (iv) board and lodging for pupils with disabilities in a 9.9 district maintaining special classes; 9.10 (v) transportation from one educational facility to another 9.11 within the district for resident pupils enrolled on a 9.12 shared-time basis in educational programs, and necessary 9.13 transportation required by sections 125A.18, and 125A.26 to 9.14 125A.48, for resident pupils with disabilities who are provided 9.15 special instruction and services on a shared-time basis; 9.16 (vi) transportation for resident pupils with disabilities 9.17 to and from board and lodging facilities when the pupil is 9.18 boarded and lodged for educational purposes;and9.19 (vii) services described in clauses (i) to (vi), when 9.20 provided for pupils with disabilities in conjunction with a 9.21 summer instructional program that relates to the pupil's 9.22 individual education plan or in conjunction with a learning year 9.23 program established under section 124D.128; 9.24 (viii) for purposes of computing special education base 9.25 revenue under section 125A.76, subdivision 2, the additional 9.26 cost of transporting a homeless student from a temporary 9.27 nonshelter home in another district to the school of origin, or 9.28 a formerly homeless student from a permanent home in another 9.29 district to the school of origin but only through the end of the 9.30 academic year, must be included in the disabled transportation 9.31 category; and 9.32 (ix) for purposes of computing special education base 9.33 revenue under section 125A.76, subdivision 2, depreciation on 9.34 district-owned buses purchased after July 1, 2004, and used 9.35 primarily for transportation of pupils with disabilities, 9.36 calculated according to paragraph (a), clause (1), items (ii) 10.1 and (iii), must be included in the disabled transportation 10.2 category. Depreciation costs included in the disabled 10.3 transportation category must be excluded in calculating the 10.4 actual expenditure per pupil transported in the regular and 10.5 excess transportation categories according to paragraph (a). 10.6 (5) "Nonpublic nonregular transportation" is: 10.7 (i) transportation from one educational facility to another 10.8 within the district for resident pupils enrolled on a 10.9 shared-time basis in educational programs, excluding 10.10 transportation for nonpublic pupils with disabilities under 10.11 clause (4); 10.12 (ii) transportation within district boundaries between a 10.13 nonpublic school and a public school or a neutral site for 10.14 nonpublic school pupils who are provided pupil support services 10.15 pursuant to section 123B.44; and 10.16 (iii) late transportation home from school or between 10.17 schools within a district for nonpublic school pupils involved 10.18 in after-school activities. 10.19 (c) "Mobile unit" means a vehicle or trailer designed to 10.20 provide facilities for educational programs and services, 10.21 including diagnostic testing, guidance and counseling services, 10.22 and health services. A mobile unit located off nonpublic school 10.23 premises is a neutral site as defined in section 123B.41, 10.24 subdivision 13. 10.25 [EFFECTIVE DATE.] This section is effective July 1, 2004, 10.26 and applies for revenue for fiscal year 2005. 10.27 Sec. 9. Minnesota Statutes 2002, section 123B.92, 10.28 subdivision 5, is amended to read: 10.29 Subd. 5. [DISTRICT REPORTS.] (a) Each district must report 10.30 data to the department as required by the department to account 10.31 for transportation expenditures. 10.32 (b) Salaries and fringe benefits of district employees 10.33 whose primary duties are other than transportation, including 10.34 central office administrators and staff, building administrators 10.35 and staff, teachers, social workers, school nurses, and 10.36 instructional aides, must not be included in a district's 11.1 transportation expenditures, except that a district may include 11.2 salaries and benefits according to paragraph (c) for (1) an 11.3 employee designated as the district transportation director, (2) 11.4 an employee providing direct support to the transportation 11.5 director, or (3) an employee providing direct transportation 11.6 services such as a bus driver or bus aide. 11.7 (c) Salaries and fringe benefits of other district 11.8 employees who work part-time in transportation and part-time in 11.9 other areas must not be included in a district's transportation 11.10 expenditures unless the district maintains documentation of the 11.11 employee's time spent on pupil transportation matters in the 11.12 form and manner prescribed by the department. 11.13 (d) Pupil transportation expenditures, excluding 11.14 expenditures for capital outlay, leased buses, student board and 11.15 lodging, crossing guards, and aides on buses, must be allocated 11.16 among transportation categories based on a cost per mile, cost 11.17 per student, cost per hour, or cost per route, regardless of 11.18 whether the transportation services are provided on 11.19 district-owned or contractor-owned school buses. Expenditures 11.20 for school bus driver salaries and fringe benefits may either be 11.21 directly charged to the appropriate transportation category or 11.22 may be allocated among transportation categories on a cost per 11.23 mile or cost per student basis. Expenditures by private 11.24 contractors or individuals who provide transportation 11.25 exclusively in one transportation category must be charged 11.26 directly to the appropriate transportation category. 11.27 Transportation services provided by contractor-owned school bus 11.28 companies incorporated under different names but owned by the 11.29 same individual or group of individuals must be treated as the 11.30 same company for cost allocation purposes. 11.31 [EFFECTIVE DATE.] This section is effective for revenue for 11.32 fiscal year 2005. 11.33 Sec. 10. Minnesota Statutes 2003 Supplement, section 11.34 124D.454, subdivision 2, is amended to read: 11.35 Subd. 2. [DEFINITIONS.] For the purposes of this section, 11.36 the definitions in this subdivision apply. 12.1 (a) "Base year" means the second fiscal year preceding the 12.2 fiscal year for which aid will be paid. 12.3 (b) "Basic revenue" has the meaning given it in section 12.4 126C.10, subdivision 2. For the purposes of computing basic 12.5 revenue pursuant to this section, each child with a disability 12.6 shall be counted as prescribed in section 126C.05, subdivision 1. 12.7 (c) "Average daily membership" has the meaning given it in 12.8 section 126C.05. 12.9 (d) "Program growth factor" means 1.00 for fiscal year 1998 12.10 and later. 12.11 (e) "Aid percentage factor" means 100 percent for fiscal 12.12 year 2000 and later. 12.13 (f) "Essential personnel" means a licensed teacher, 12.14 licensed support services staff person, paraprofessional 12.15 providing direct services to students, or licensed personnel 12.16 under subdivision 12, paragraph (c). This definition is not 12.17 intended to change or modify the definition of essential 12.18 employee in chapter 179A. 12.19 [EFFECTIVE DATE.] This section is effective the day 12.20 following final enactment. 12.21 Sec. 11. Minnesota Statutes 2002, section 125A.51, is 12.22 amended to read: 12.23 125A.51 [PLACEMENT OF CHILDREN WITHOUT DISABILITIES; 12.24 EDUCATION AND TRANSPORTATION.] 12.25 The responsibility for providing instruction and 12.26 transportation for a pupil without a disability who has a 12.27 short-term or temporary physical or emotional illness or 12.28 disability, as determined by the standards of the commissioner, 12.29 and who is temporarily placed for care and treatment for that 12.30 illness or disability, must be determined as provided in this 12.31 section. 12.32 (a) The school district of residence of the pupil is the 12.33 district in which the pupil's parent or guardian resides. 12.34 (b) When parental rights have been terminated by court 12.35 order, the legal residence of a child placed in a residential or 12.36 foster facility for care and treatment is the district in which 13.1 the child resides. 13.2 (c) Before the placement of a pupil for care and treatment, 13.3 the district of residence must be notified and provided an 13.4 opportunity to participate in the placement decision. When an 13.5 immediate emergency placement is necessary and time does not 13.6 permit resident district participation in the placement 13.7 decision, the district in which the pupil is temporarily placed, 13.8 if different from the district of residence, must notify the 13.9 district of residence of the emergency placement within 15 days 13.10 of the placement. 13.11 (d) When a pupil without a disability is temporarily placed 13.12 for care and treatment in a day program and the pupil continues 13.13 to live within the district of residence during the care and 13.14 treatment, the district of residence must provide instruction 13.15 and necessary transportation to and from the treatment facility 13.16 for the pupil. Transportation shall only be provided by the 13.17 district during regular operating hours of the district. The 13.18 district may provide the instruction at a school within the 13.19 district of residence, at the pupil's residence, or in the case 13.20 of a placement outside of the resident district, in the district 13.21 in which the day treatment program is located by paying tuition 13.22 to that district. The district of placement may contract with a 13.23 facility to provide instruction by teachers licensed by the 13.24 state Board of Teaching. 13.25 (e) When a pupil without a disability is temporarily placed 13.26 in a residential program for care and treatment, the district in 13.27 which the pupil is placed must provide instruction for the pupil 13.28 and necessary transportation while the pupil is receiving 13.29 instruction, and in the case of a placement outside of the 13.30 district of residence, the nonresident district must bill the 13.31 district of residence for the actual cost of providing the 13.32 instruction for the regular school year and for summer school, 13.33 excluding transportation costs, unless the pupil is homeless and 13.34 placed in a public or private facility as defined in section 13.35 125A.515. Then the district that enrolls the pupil under 13.36 section 127A.47, subdivision 2, shall provide the 14.1 transportation, unless the district that enrolls the pupil and 14.2 the district in which the pupil is temporarily placed agree that 14.3 the district in which the pupil is temporarily placed shall 14.4 provide transportation. When a pupil without a disability is 14.5 temporarily placed in a residential program outside the district 14.6 of residence, the administrator of the court placing the pupil 14.7 must send timely written notice of the placement to the district 14.8 of residence. The district of placement may contract with a 14.9 residential facility to provide instruction by teachers licensed 14.10 by the state Board of Teaching. For purposes of this section, 14.11 the state correctional facilities operated on a fee-for-service 14.12 basis are considered to be residential programs for care and 14.13 treatment. 14.14 (f) The district of residence must include the pupil in its 14.15 residence count of pupil units and pay tuition as provided in 14.16 section 123A.488 to the district providing the instruction. 14.17 Transportation costs must be paid by the district providing the 14.18 transportation and the state must pay transportation aid to that 14.19 district. For purposes of computing state transportation aid, 14.20 pupils governed by this subdivision must be included in the 14.21 disabled transportation category. 14.22 [EFFECTIVE DATE.] This section is effective the day 14.23 following final enactment. 14.24 Sec. 12. Minnesota Statutes 2003 Supplement, section 14.25 126C.10, subdivision 3, is amended to read: 14.26 Subd. 3. [COMPENSATORY EDUCATION REVENUE.] (a) The 14.27 compensatory education revenue for each building in the district 14.28 equals the formula allowance minus $415 times the compensation 14.29 revenue pupil units computed according to section 126C.05, 14.30 subdivision 3. Revenue shall be paid to the district and must 14.31 be allocated according to section 126C.15, subdivision 2. 14.32 (b) When the district contracting with an alternative 14.33 program under section 124D.69 changes prior to the start of a 14.34 school year, the compensatory revenue generated by pupils 14.35 attending the program shall be paid to the district contracting 14.36 with the alternative program for the current school year, and 15.1 shall not be paid to the district contracting with the 15.2 alternative program for the prior school year. 15.3 (c) When the fiscal agent district for an area learning 15.4 center changes prior to the start of a school year, the 15.5 compensatory revenue shall be paid to the fiscal agent district 15.6 for the current school year, and shall not be paid to the fiscal 15.7 agent district for the prior school year. 15.8 [EFFECTIVE DATE.] This section is effective for revenue for 15.9 fiscal year 2005. 15.10 Sec. 13. Minnesota Statutes 2003 Supplement, section 15.11 126C.10, subdivision 31, is amended to read: 15.12 Subd. 31. [TRANSITION REVENUE.] (a) A district's 15.13 transition allowance for fiscal years 2004 through 2008 equals 15.14 the greater of zero or the product of the ratio of the number of 15.15 adjusted marginal cost pupil units the district would have 15.16 counted for fiscal year 2004 under Minnesota Statutes 2002 to 15.17 the district's adjusted marginal cost pupil units for fiscal 15.18 year 2004, times the difference between: (1) the lesser of the 15.19 district's general education revenue per adjusted marginal cost 15.20 pupil unit for fiscal year 2003 or the amount of general 15.21 education revenue the district would have received per adjusted 15.22 marginal cost pupil unit for fiscal year 2004 according to 15.23 Minnesota Statutes 2002, and (2) the district's general 15.24 education revenue for fiscal year 2004 excluding transition 15.25 revenue divided by the number of adjusted marginal cost pupil 15.26 units the district would have counted for fiscal year 2004 under 15.27 Minnesota Statutes 2002. A district's transition allowance for 15.28 fiscal year 2009 and later is zero. 15.29 (b) A district's transition revenue for fiscal year 2004 15.30and laterequals the product of the district's transition 15.31 allowance times the district's adjusted marginal cost pupil 15.32 units. 15.33 (c) A district's transition revenue for fiscal year 2005 15.34 equals the sum of: 15.35 (1) the product of the district's transition allowance 15.36 times the district's adjusted marginal cost pupil units, plus 16.1 (2) the amount of referendum revenue under section 126C.17 16.2 and general education revenue, excluding transition revenue, for 16.3 fiscal year 2004 attributable to pupils four or five years of 16.4 age on September 1, 2003, enrolled in a prekindergarten program 16.5 implemented by the district before July 1, 2003, and reported as 16.6 kindergarten pupils under section 126C.05, subdivision 1, for 16.7 fiscal year 2004. 16.8 (d) A district's transition revenue for fiscal year 2006 16.9 and later equals the sum of: 16.10 (1) the product of the district's transition allowance 16.11 times the district's adjusted marginal cost pupil units, plus 16.12 (2) the amount of referendum revenue under section 126C.17 16.13 and general education revenue, excluding transition revenue, for 16.14 fiscal year 2004 attributable to pupils four or five years of 16.15 age on September 1, 2003, enrolled in a prekindergarten program 16.16 implemented by the district before July 1, 2003, and reported as 16.17 kindergarten pupils under section 126C.05, subdivision 1, for 16.18 fiscal year 2004, plus 16.19 (3) the amount of compensatory education revenue under 16.20 subdivision 3 for fiscal year 2005 attributable to pupils four 16.21 years of age on September 1, 2003, enrolled in a prekindergarten 16.22 program implemented by the district before July 1, 2003, and 16.23 reported as kindergarten pupils under section 126C.05, 16.24 subdivision 1, for fiscal year 2004. 16.25 [EFFECTIVE DATE.] This section is effective for revenue for 16.26 fiscal year 2005. 16.27 Sec. 14. Minnesota Statutes 2003 Supplement, section 16.28 126C.15, subdivision 1, is amended to read: 16.29 Subdivision 1. [USE OF THE REVENUE.] Except for revenue 16.30 allocated for prekindergarten programs under subdivision 2, 16.31 paragraph (c), the basic skills revenue under section 126C.10, 16.32 subdivision 4, must be reserved and used to meet the educational 16.33 needs of pupils who enroll under-prepared to learn and whose 16.34 progress toward meeting state or local content or performance 16.35 standards is below the level that is appropriate for learners of 16.36 their age. Any of the following may be provided to meet these 17.1 learners' needs: 17.2 (1) direct instructional services under the assurance of 17.3 mastery program according to section 124D.66; 17.4 (2) remedial instruction in reading, language arts, 17.5 mathematics, other content areas, or study skills to improve the 17.6 achievement level of these learners; 17.7 (3) additional teachers and teacher aides to provide more 17.8 individualized instruction to these learners through individual 17.9 tutoring, lower instructor-to-learner ratios, or team teaching; 17.10 (4) a longer school day or week during the regular school 17.11 year or through a summer program that may be offered directly by 17.12 the site or under a performance-based contract with a 17.13 community-based organization; 17.14 (5) comprehensive and ongoing staff development consistent 17.15 with district and site plans according to section 122A.60, for 17.16 teachers, teacher aides, principals, and other personnel to 17.17 improve their ability to identify the needs of these learners 17.18 and provide appropriate remediation, intervention, 17.19 accommodations, or modifications; 17.20 (6) instructional materials and technology appropriate for 17.21 meeting the individual needs of these learners; 17.22 (7) programs to reduce truancy, encourage completion of 17.23 high school, enhance self-concept, provide health services, 17.24 provide nutrition services, provide a safe and secure learning 17.25 environment, provide coordination for pupils receiving services 17.26 from other governmental agencies, provide psychological services 17.27 to determine the level of social, emotional, cognitive, and 17.28 intellectual development, and provide counseling services, 17.29 guidance services, and social work services; 17.30 (8) bilingual programs, bicultural programs, and programs 17.31 for learners of limited English proficiency; 17.32 (9) all day kindergarten; 17.33 (10) extended school day and extended school year programs; 17.34 and 17.35 (11) substantial parent involvement in developing and 17.36 implementing remedial education or intervention plans for a 18.1 learner, including learning contracts between the school, the 18.2 learner, and the parent that establish achievement goals and 18.3 responsibilities of the learner and the learner's parent or 18.4 guardian. 18.5 [EFFECTIVE DATE.] This section is effective July 1, 2004, 18.6 for revenue for fiscal year 2005. 18.7 Sec. 15. Minnesota Statutes 2002, section 126C.15, 18.8 subdivision 2, is amended to read: 18.9 Subd. 2. [BUILDING ALLOCATION.] (a) A district must 18.10 allocate its compensatory revenue to each school building in the 18.11 district where the children who have generated the revenue are 18.12 served. 18.13 (b) Notwithstanding paragraph (a), a district may allocate 18.14 up to five percent of the amount of compensatory revenue that 18.15 the districtreceived during the previous fiscal yearreceives 18.16 to school sites according to a plan adopted by the school board. 18.17 (c) Notwithstanding paragraph (a), a district may allocate 18.18 up to ten percent of the amount of compensatory revenue the 18.19 district receives to support prekindergarten programs under 18.20 subdivision 2a. 18.21 (d) For the purposes of this section and section 126C.05, 18.22 subdivision 3, "building" means education site as defined in 18.23 section 123B.04, subdivision 1. 18.24(d)(e) If the pupil is served at a site other than one 18.25 owned and operated by the district, the revenue shall be paid to 18.26 the district and used for services for pupils who generate the 18.27 revenue. 18.28 [EFFECTIVE DATE.] This section is effective July 1, 2004, 18.29 for revenue for fiscal year 2005. 18.30 Sec. 16. Minnesota Statutes 2002, section 126C.15, is 18.31 amended by adding a subdivision to read: 18.32 Subd. 2a. [PREKINDERGARTEN PROGRAMS.] Revenue allocated 18.33 under subdivision 2, paragraph (c), must be reserved and used 18.34 for programs and activities that prepare children ages 3-1/2 to 18.35 kindergarten entrance for kindergarten. Programs may serve 18.36 resident and nonresident children. Districts may contract with 19.1 private preschools and other providers of prekindergarten 19.2 programs. 19.3 [EFFECTIVE DATE.] This section is effective for revenue for 19.4 fiscal year 2005. 19.5 Sec. 17. Minnesota Statutes 2003 Supplement, section 19.6 126C.17, subdivision 9, is amended to read: 19.7 Subd. 9. [REFERENDUM REVENUE.] (a) The revenue authorized 19.8 by section 126C.10, subdivision 1, may be increased in the 19.9 amount approved by the voters of the district at a referendum 19.10 called for the purpose. The referendum may be called by the 19.11 board or shall be called by the board upon written petition of 19.12 qualified voters of the district. The referendum must be 19.13 conducted one or two calendar years before the increased levy 19.14 authority, if approved, first becomes payable. Only one 19.15 election to approve an increase may be held in a calendar year. 19.16 Unless the referendum is conducted by mail under paragraph (g), 19.17 the referendum must be held on the first Tuesday after the first 19.18 Monday in November. The ballot must state the maximum amount of 19.19 the increased revenue per resident marginal cost pupil unit, the19.20estimated referendum tax rate as a percentage of referendum19.21market value in the first year it is to be levied, and that the19.22revenue must be used to finance school operations. The ballot 19.23 may state a schedule, determined by the board, of increased 19.24 revenue per resident marginal cost pupil unit that differs from 19.25 year to year over the number of years for which the increased 19.26 revenue is authorized.If the ballot contains a schedule19.27showing different amounts, it must also indicate the estimated19.28referendum tax rate as a percent of referendum market value for19.29the amount specified for the first year and for the maximum19.30amount specified in the schedule.The ballot may state that 19.31 existing referendum levy authority is expiring. In this case, 19.32 the ballot may also compare the proposed levy authority to the 19.33 existing expiring levy authority, and express the proposed 19.34 increase as the amount, if any, over the expiring referendum 19.35 levy authority. The ballot must designate the specific number 19.36 of years, not to exceed ten, for which the referendum 20.1 authorization applies. The ballot, including a ballot on the 20.2 question to revoke or reduce the increased revenue amount under 20.3 paragraph (c), must abbreviate the term "per resident marginal 20.4 cost pupil unit" as "per pupil." The notice required under 20.5 section 275.60 may be modified to read, in cases of renewing 20.6 existing levies: 20.7 "BY VOTING "YES" ON THIS BALLOT QUESTION, YOU MAY BE VOTING 20.8 FOR A PROPERTY TAX INCREASE." 20.9 The ballot may contain a textual portion with the 20.10 information required in this subdivision and a question stating 20.11 substantially the following: 20.12 "Shall the increase in the revenue proposed by (petition 20.13 to) the board of ........., School District No. .., be approved?" 20.14 If approved, an amount equal to the approved revenue per 20.15 resident marginal cost pupil unit times the resident marginal 20.16 cost pupil units for the school year beginning in the year after 20.17 the levy is certified shall be authorized for certification for 20.18 the number of years approved, if applicable, or until revoked or 20.19 reduced by the voters of the district at a subsequent referendum. 20.20 (b) The board must prepare and deliver by first class mail 20.21 at least 15 days but no more than 30 days before the day of the 20.22 referendum to each taxpayer a notice of the referendum and the 20.23 proposed revenue increase. The board need not mail more than 20.24 one notice to any taxpayer. For the purpose of giving mailed 20.25 notice under this subdivision, owners must be those shown to be 20.26 owners on the records of the county auditor or, in any county 20.27 where tax statements are mailed by the county treasurer, on the 20.28 records of the county treasurer. Every property owner whose 20.29 name does not appear on the records of the county auditor or the 20.30 county treasurer is deemed to have waived this mailed notice 20.31 unless the owner has requested in writing that the county 20.32 auditor or county treasurer, as the case may be, include the 20.33 name on the records for this purpose. The notice must project 20.34 the anticipated amount of tax increase in annual dollarsand20.35annual percentagefor typical residential homesteads, 20.36 agricultural homesteads, apartments, and commercial-industrial 21.1 property within the school district. 21.2 The notice for a referendum may state that an existing 21.3 referendum levy is expiring and project the anticipated amount 21.4 of increase over the existing referendum levy in the first year, 21.5 if any, in annual dollarsand annual percentagefor typical 21.6 residential homesteads, agricultural homesteads, apartments, and 21.7 commercial-industrial property within the district. 21.8 The notice must include the following statement: "Passage 21.9 of this referendum will result in an increase in your property 21.10 taxes." However, in cases of renewing existing levies, the 21.11 notice may include the following statement: "Passage of this 21.12 referendum may result in an increase in your property taxes." 21.13 (c) A referendum on the question of revoking or reducing 21.14 the increased revenue amount authorized pursuant to paragraph 21.15 (a) may be called by the board and shall be called by the board 21.16 upon the written petition of qualified voters of the district. 21.17 A referendum to revoke or reduce the revenue amount must state 21.18 the amount per resident marginal cost pupil unit by which the 21.19 authority is to be reduced. Revenue authority approved by the 21.20 voters of the district pursuant to paragraph (a) must be 21.21 available to the school district at least once before it is 21.22 subject to a referendum on its revocation or reduction for 21.23 subsequent years. Only one revocation or reduction referendum 21.24 may be held to revoke or reduce referendum revenue for any 21.25 specific year and for years thereafter. 21.26 (d) A petition authorized by paragraph (a) or (c) is 21.27 effective if signed by a number of qualified voters in excess of 21.28 15 percent of the registered voters of the district on the day 21.29 the petition is filed with the board. A referendum invoked by 21.30 petition must be held on the date specified in paragraph (a). 21.31 (e) The approval of 50 percent plus one of those voting on 21.32 the question is required to pass a referendum authorized by this 21.33 subdivision. 21.34 (f) At least 15 days before the day of the referendum, the 21.35 district must submit a copy of the notice required under 21.36 paragraph (b) to the commissioner and to the county auditor of 22.1 each county in which the district is located. Within 15 days 22.2 after the results of the referendum have been certified by the 22.3 board, or in the case of a recount, the certification of the 22.4 results of the recount by the canvassing board, the district 22.5 must notify the commissioner of the results of the referendum. 22.6 [EFFECTIVE DATE.] This section is effective for referenda 22.7 conducted on or after July 1, 2004. 22.8 Sec. 18. Minnesota Statutes 2003 Supplement, section 22.9 126C.43, subdivision 2, is amended to read: 22.10 Subd. 2. [PAYMENT TO UNEMPLOYMENT INSURANCE PROGRAM TRUST 22.11 FUND BY STATE AND POLITICAL SUBDIVISIONS.] A district may 22.12 levy90 percent ofthe amountexceeding $10 times the district's22.13adjusted marginal cost pupil units for the fiscal year ending in22.14the year before the year the levy is certifiednecessary (i) to 22.15 pay the district's obligations under section 268.052, 22.16 subdivision 1, and (ii) to pay for job placement services 22.17 offered to employees who may become eligible for benefits 22.18 pursuant to section 268.085 for the fiscal year the levy is 22.19 certified. 22.20 [EFFECTIVE DATE.] This section is effective for taxes 22.21 payable in 2005. 22.22 Sec. 19. Minnesota Statutes 2003 Supplement, section 22.23 126C.43, subdivision 3, is amended to read: 22.24 Subd. 3. [TAX LEVY FOR JUDGMENT.] A district may levy9022.25percent ofthe amountexceeding $10 times the district's22.26adjusted marginal cost pupil units for the fiscal year ending in22.27the year before the year the levy is certifiednecessary to pay 22.28 judgments against the district under section 123B.25 that became 22.29 final after the date the district certified its proposed levy in 22.30 the previous year. With the approval of the commissioner, a 22.31 district may spread this levy over a period not to exceed three 22.32 years. Upon approval through the adoption of a resolution by 22.33 each of an intermediate district's member school district 22.34 boards, a member school district may include its proportionate 22.35 share of the costs of a judgment against an intermediate school 22.36 district that became final under section 123B.25 after the date 23.1 that the earliest member school district certified its proposed 23.2 levy in the previous year. With the approval of the 23.3 commissioner, an intermediate school district member school 23.4 district may spread this levy over a period not to exceed three 23.5 years. 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.44, is amended to read: 23.10 126C.44 [SAFE SCHOOLS LEVY.] 23.11 (a) Each district may make a levy on all taxable property 23.12 located within the district for the purposes specified in this 23.13 section. The maximum amount which may be levied for all costs 23.14 under this section shall be equal to$27$30 multiplied by the 23.15 district's adjusted marginal cost pupil units for the school 23.16 year. A school district that is a member of an intermediate 23.17 school district may include in its authority under this section 23.18 an additional amount equal to $2 times the district's adjusted 23.19 marginal cost pupil units for the school year for safe schools 23.20 costs of the intermediate school districts. 23.21 (b) The proceeds of the levy must be used for directly 23.22 funding the following purposes or for reimbursing the cities and 23.23 counties who contract with the district for the following 23.24 purposes: (1) to pay the costs incurred for the salaries, 23.25 benefits, and transportation costs of peace officers and 23.26 sheriffs for liaison in services in the district's schools; (2) 23.27 to pay the costs for a drug abuse prevention program as defined 23.28 in section 609.101, subdivision 3, paragraph (e), in the 23.29 elementary schools; (3) to pay the costs for a gang resistance 23.30 education training curriculum in the district's schools; (4) to 23.31 pay the costs for security in the district's schools and on 23.32 school property; or (5) to pay the costs for other crime 23.33 prevention, drug abuse, student and staff safety, and violence 23.34 prevention measures taken by the school district. The district 23.35 must initially attempt to contract for services to be provided 23.36 by peace officers or sheriffs with the police department of each 24.1 city or the sheriff's department of the county within the 24.2 district containing the school receiving the services. If a 24.3 local police department or a county sheriff's department does 24.4 not wish to provide the necessary services, the district may 24.5 contract for these services with any other police or sheriff's 24.6 department located entirely or partially within the school 24.7 district's boundaries. The levy authorized under this section 24.8 is not included in determining the school district's levy 24.9 limitations. 24.10 [EFFECTIVE DATE.] This section is effective for taxes 24.11 payable in 2005. 24.12 Sec. 21. Minnesota Statutes 2003 Supplement, section 24.13 127A.42, subdivision 2, is amended to read: 24.14 Subd. 2. [VIOLATIONS OF LAW.] (a) The commissioner may 24.15 reduce or withhold the district's state aid for any school year 24.16 whenever the board of the district authorizes or permits 24.17 violations of law within the district by: 24.18 (1) employing a teacher who does not hold a valid teaching 24.19 license or permit in a public school; 24.20 (2) noncompliance with a mandatory rule of general 24.21 application promulgated by the commissioner in accordance with 24.22 statute, unless special circumstances make enforcement 24.23 inequitable, impose an extraordinary hardship on the district, 24.24 or the rule is contrary to the district's best interests; 24.25 (3) the district's continued performance of a contract made 24.26 for the rental of rooms or buildings for school purposes or for 24.27 the rental of any facility owned or operated by or under the 24.28 direction of any private organization, if the contract has been 24.29 disapproved, the time for review of the determination of 24.30 disapproval has expired, and no proceeding for review is 24.31 pending; 24.32 (4) any practice which is a violation of sections 1 and 2 24.33 of article 13 of the Constitution of the state of Minnesota; 24.34 (5) failure to reasonably provide for a resident pupil's 24.35 school attendance under Minnesota Statutes; 24.36 (6) noncompliance with state laws prohibiting 25.1 discrimination because of race, color, creed, religion, national 25.2 origin, sex, age, marital status, status with regard to public 25.3 assistance or disability, as defined in sections 363A.08 to 25.4 363A.19 and 363A.28, subdivision 10; or 25.5 (7) using funds contrary to the statutory purpose of the 25.6 funds. 25.7 (b) If a district does not submit audited financial data or 25.8 an audited financial statement according to section 123B.77, 25.9 subdivision 3, the commissioner may withhold the district's 25.10 state aid for the school year until the audited financial data 25.11 or an audited financial statement have been submitted to the 25.12 commissioner. 25.13 (c) The reduction or withholding must be made in the amount 25.14 and upon the procedure provided in this section. 25.15 (d) For the purposes of this section, "reduce" means a 25.16 permanent reduction in a district or charter school's state aid 25.17 for a fiscal year, and "withhold" means a temporary withholding 25.18 of a portion of a district or charter school's state-aid 25.19 payments during the period in which a violation exists. Aids 25.20 withheld from a district or charter school must be paid to the 25.21 district or charter school within 30 days of the date the 25.22 violation of law has been corrected. 25.23 [EFFECTIVE DATE.] This section is effective the day 25.24 following final enactment and applies to audited financial data 25.25 and audited financial statements for fiscal year 2004 and later. 25.26 Sec. 22. Minnesota Statutes 2002, section 127A.42, 25.27 subdivision 4, is amended to read: 25.28 Subd. 4. [NOTICE TO BOARD.] (a) When it appears that a 25.29 violation is occurring in a district, the commissioner shall 25.30 notify the board of that district in writing. The notice must 25.31 specify the violations, set a reasonable time within which the 25.32 district must correct the specified violations, describe the 25.33 correction required, and advise that if the correction is not 25.34 made within the time allowed, special state aids to the district 25.35 will be reduced or withheld. The time allowed for correction 25.36 may be extended by the commissioner if there is reasonable 26.1 ground therefor. 26.2 (b) The timeline for submission of audited financial data 26.3 or an audited financial statement must allow the district or 26.4 charter school at least two months beyond the statutory due date 26.5 according to section 123B.77, subdivision 3, before any 26.6 withholding of aid will occur. 26.7 [EFFECTIVE DATE.] This section is effective July 1, 2004. 26.8 Sec. 23. Minnesota Statutes 2002, section 127A.42, 26.9 subdivision 6, is amended to read: 26.10 Subd. 6. [VIOLATION; AID REDUCTION OR WITHHOLDING.] (a) 26.11 The commissioner shall not reduce or withhold state aids payable 26.12 to the district if the violation specified is corrected within 26.13 the time permitted, or if the audited financial data or an 26.14 audited financial statement is submitted according to section 26.15 123B.77, subdivision 3, or if the commissioner on being notified 26.16 of the district board's decision to dispute decides the 26.17 violation does not exist, or if the commissioner decides after 26.18 hearing no violation specified in the commissioner's notice 26.19 existed at the time of the notice, or that the violations were 26.20 corrected within the time permitted. Otherwise state aids 26.21 payable to the district for the year in which the violation 26.22 occurred may be reduced or withheld as follows: The total 26.23 amount of state aids to which the district may be entitled shall 26.24 be reduced or withheld in the proportion that the period during 26.25 which a specified violation continued, computed from the last 26.26 day of the time permitted for correction, bears to the total 26.27 number of days school is held in the district during the year in 26.28 which a violation exists, multiplied by up to 60 percent of the 26.29 basic revenue, as defined in section 126C.10, subdivision 2, of 26.30 the district for that year. 26.31 (b) Notwithstanding paragraph (a), the commissioner must 26.32 not withhold more than one percent of a district's basic revenue 26.33 for failure to submit audited financial data or an audited 26.34 financial statement according to section 123B.77, subdivision 3. 26.35 [EFFECTIVE DATE.] This section is effective July 1, 2004. 26.36 Sec. 24. Minnesota Statutes 2002, section 127A.47, 27.1 subdivision 3, is amended to read: 27.2 Subd. 3. [REVENUE FOR CHILDREN OF DIVORCED OR LEGALLY 27.3 SEPARATED PARENTS OR PARENTS RESIDING SEPARATELY.] (a) In those 27.4 instances when the divorced or legally separated parents or 27.5 parents residing separately share joint physical custody of the 27.6 child and the divorced or legally separated parents or parents 27.7 residing separately reside in different school districts, for 27.8 all school purposes, unless otherwise specifically provided by 27.9 law, the child must be considered a resident of the school 27.10 district, as indicated by the child's parents. 27.11 (b) When the child of divorced or legally separated parents 27.12 or parents residing separately under paragraph (a) resides with 27.13 each parent on alternate weeks, the parents shall be responsible 27.14 for the transportation of the child to the border of the 27.15 resident school district during those weeks when the child 27.16 resides in the nonresident school district. 27.17 [EFFECTIVE DATE.] This section is effective July 1, 2004. 27.18 Sec. 25. [127A.52] [CROSS-SUBSIDY REPORTS.] 27.19 (a) By January 31 each year, the commissioner must estimate 27.20 how much each district cross-subsidized the cost of special 27.21 education with general education revenue during the fiscal year 27.22 ending on June 30 of the previous year. 27.23 (b) By January 31 each year, the commissioner must estimate 27.24 how much each district cross-subsidized the cost of basic skills 27.25 programs according to section 126C.15, subdivision 1, with 27.26 revenue other than basic skills revenue according to section 27.27 126C.10, subdivision 4, during the fiscal year ending on June 30 27.28 of the previous year. 27.29 (c) The commissioner must make the cross-subsidy estimates 27.30 available to all districts and the public by posting the 27.31 cross-subsidy reports on the department's Web site. 27.32 [EFFECTIVE DATE.] This section is effective July 1, 2004. 27.33 Sec. 26. Minnesota Statutes 2002, section 169.451, is 27.34 amended to read: 27.35 169.451 [INSPECTING SCHOOL AND HEAD START BUSES; RULES; 27.36 MISDEMEANOR.] 28.1 Subdivision 1. [ANNUAL REQUIREMENT.]The Minnesota State28.2Patrol shall inspectEvery school bus and every Head Start 28.3 bus must be inspected annually to ascertain whether its 28.4 construction, design, equipment, and color comply with all 28.5 provisions of law. 28.6 Subd. 1a. [INSPECTOR CERTIFICATION; SUSPENSION AND 28.7 REVOCATION; HEARING.] (a) An inspection required by this section 28.8 may be performed only by: 28.9 (1) an employee of the Department of Public Safety or 28.10 Transportation who has been certified by the commissioner after 28.11 having received training provided by the State Patrol; or 28.12 (2) another person who has been certified by the 28.13 commissioner after having received training provided by the 28.14 State Patrol or other training approved by the commissioner. 28.15 (b) A person who is not an employee of the Department of 28.16 Public Safety or Transportation may be certified by the 28.17 commissioner if the person is: 28.18 (1) an owner, or employee of the owner, of one or more 28.19 school buses, Head Start buses, or both; 28.20 (2) a dealer licensed under section 168.27 and engaged in 28.21 the business of buying and selling school buses, Head Start 28.22 buses, or both, or an employee of the dealer; or 28.23 (3) engaged in the business of repairing and servicing 28.24 school buses, Head Start buses, or both. 28.25 (c) Certification of persons described in paragraph (b) is 28.26 effective for two years from the date of certification. The 28.27 commissioner may require biennial retraining of persons holding 28.28 a certificate under paragraph (b) as a condition of renewal of 28.29 the certificate. The commissioner may charge a fee of not more 28.30 than $10 for each certificate issued and renewed. A certified 28.31 person described in paragraph (b) may charge a reasonable fee 28.32 for each inspection of a vehicle not owned by the person or the 28.33 person's employer. 28.34 (d) The commissioner may classify types of vehicles for 28.35 inspection purposes and may issue separate classes of inspector 28.36 certificates for each class. The commissioner shall issue 29.1 separate categories of inspector certificates based on the 29.2 following classifications: 29.3 (1) a class of certificate that authorizes the certificate 29.4 holder to inspect school buses, Head Start buses, or both, 29.5 without regard to ownership or lease; and 29.6 (2) a class of certificate that authorizes the certificate 29.7 holder to inspect only school buses, Head Start buses, or both, 29.8 that the certificate holder owns or leases. 29.9 The commissioner shall issue a certificate described in clause 29.10 (1) only to a person described in paragraph (b), clause (2) or 29.11 (3). 29.12 (e) The commissioner, after notice and an opportunity for a 29.13 hearing, may suspend a certificate issued under paragraph (b) 29.14 for failure to meet annual certification requirements prescribed 29.15 by the commissioner or failure to inspect school buses, Head 29.16 Start buses, or both, in accordance with inspection procedures 29.17 established by the State Patrol. The commissioner shall revoke 29.18 a certificate issued under paragraph (b) if the commissioner 29.19 determines after notice and an opportunity for a hearing that 29.20 the certified person issued an inspection decal for a school bus 29.21 or Head Start bus when the person knew or reasonably should have 29.22 known that the vehicle was in such a state of repair that it 29.23 would have been declared out of service if inspected by an 29.24 employee of the State Patrol. Suspension and revocation of 29.25 certificates under this subdivision are not subject to sections 29.26 14.57 to 14.69. 29.27 Subd. 1b. [INSPECTION REPORT.] (a) A person performing an 29.28 inspection under this section shall issue an inspection report 29.29 to the owner of the school bus or Head Start bus inspected. The 29.30 report must include: 29.31 (1) the full name of the person performing the inspection 29.32 and the person's inspector certification number; 29.33 (2) the name of the owner of the vehicle; 29.34 (3) the vehicle identification number and, if applicable, 29.35 the license plate number of the vehicle; 29.36 (4) the date and location of the inspection; 30.1 (5) the vehicle components inspected and a description of 30.2 the findings of the inspection; and 30.3 (6) the inspector's certification that the inspection was 30.4 complete, accurate, and in compliance with the requirements of 30.5 this section. 30.6 (b) The owner must retain a copy of the inspection report 30.7 for at least 14 months at a location in the state where the 30.8 vehicle is domiciled or maintained. The inspector must maintain 30.9 a copy of the inspection report for a period of 14 months 30.10 following the inspection in a location in the state where the 30.11 inspector conducts business. During this period the report must 30.12 be available for inspection by an authorized federal, state, or 30.13 local official. 30.14 (c) The commissioner shall prescribe the form of the 30.15 inspection report and revise it as necessary to comply with 30.16 state and federal law and regulations. The adoption of the 30.17 report form is not subject to the Administrative Procedure Act. 30.18 Subd. 2. [INSPECTION CERTIFICATE.] No person shall drive, 30.19 or no owner shall knowingly permit or cause to be driven, any 30.20 school bus or Head Start bus unless there is displayed thereon a 30.21 certificate issued by the commissioner of public safety stating 30.22 that on a certain date, which shall be within 13 months of the 30.23 date of operation,a member of the Minnesota State Patrol30.24inspectedthe bus was inspected under subdivision 1a and found 30.25 that on the date of inspection the bus complied with the 30.26 applicable provisions of state law relating to construction, 30.27 design, equipment, and color. 30.28 Subd. 3. [RULES OF COMMISSIONER.] (a) The commissioner of 30.29 public safety shall provide by rule for the issuance and display 30.30 of distinctive inspection certificates. 30.31 (b) The commissioner of public safety shall provide by rule 30.32 a point system for evaluating the effect on safety operation of 30.33 any variance from law detected during inspections conducted 30.34 pursuant tosubdivisionsubdivisions 1, 1a, and 1b. 30.35 Subd. 4. [VIOLATION; PENALTY.] The State Patrol shall 30.36 enforce subdivision 2. A violation of subdivision 2 is a 31.1 misdemeanor. 31.2 Subd. 5. [RANDOM SPOT INSPECTION.]In addition to the31.3annual inspection,The Minnesota State Patrol has authority to 31.4 conduct random, unannounced spot inspections of any school bus 31.5 or Head Start bus being operated within the state to ascertain 31.6 whether it is in compliance with provisions of law, including 31.7 the Minnesota school bus equipment standards in sections 31.8 169.4501 to 169.4504, subject to the procedures approved by the 31.9 commissioner. 31.10 Sec. 27. Minnesota Statutes 2003 Supplement, section 31.11 275.065, subdivision 1, is amended to read: 31.12 Subdivision 1. [PROPOSED LEVY.] (a) Notwithstanding any 31.13 law or charter to the contrary, on or before September 15, each 31.14 taxing authority, other than a school district, shall adopt a 31.15 proposed budget and shall certify to the county auditor the 31.16 proposed or, in the case of a town, the final property tax levy 31.17 for taxes payable in the following year. 31.18 (b) On or before September 30, each school district shall 31.19 certify to the county auditor the proposed property tax levy for 31.20 taxes payable in the following year. The school district shall 31.21 certify the proposed levy as: 31.22 (1)the state determined school levy amount as prescribed31.23under section 126C.13, subdivision 2;a specific dollar amount 31.24 by school district fund, broken down between voter-approved and 31.25 non-voter-approved levies and between referendum market value 31.26 and tax capacity levies; or 31.27 (2)voter approved referendum and debt levies; and31.28(3) the sum of the remaining school levies, orthe maximum 31.29 levy limitation certified by the commissioner of education 31.30 according to section 126C.48, subdivision 1, less the amounts31.31levied under clauses (1) and (2). 31.32 (c) If the board of estimate and taxation or any similar 31.33 board that establishes maximum tax levies for taxing 31.34 jurisdictions within a first class city certifies the maximum 31.35 property tax levies for funds under its jurisdiction by charter 31.36 to the county auditor by September 15, the city shall be deemed 32.1 to have certified its levies for those taxing jurisdictions. 32.2 (d) For purposes of this section, "taxing authority" 32.3 includes all home rule and statutory cities, towns, counties, 32.4 school districts, and special taxing districts as defined in 32.5 section 275.066. Intermediate school districts that levy a tax 32.6 under chapter 124 or 136D, joint powers boards established under 32.7 sections 123A.44 to 123A.446, and Common School Districts No. 32.8 323, Franconia, and No. 815, Prinsburg, are also special taxing 32.9 districts for purposes of this section. 32.10 [EFFECTIVE DATE.] This section is effective July 1, 2004. 32.11 Sec. 28. Laws 2003, First Special Session chapter 9, 32.12 article 1, section 53, subdivision 2, is amended to read: 32.13 Subd. 2. [GENERAL EDUCATION AID.] For general education 32.14 aid under Minnesota Statutes, section 126C.13, subdivision 4: 32.15$4,764,384,000$4,726,466,000 ..... 2004 32.16$5,090,303,000$5,017,204,000 ..... 2005 32.17 The 2004 appropriation includes$857,432,000$860,552,000 32.18 for 2003 and$3,906,952,000$3,865,914,000 for 2004. 32.19 The 2005 appropriation includes 32.20$1,009,856,000$1,009,822,000 for 2004 32.21 and$4,080,447,000$4,007,382,000 for 2005. 32.22 Sec. 29. [KINDERGARTEN REPORTING.] 32.23 Notwithstanding Minnesota Statutes, sections 120A.05, 32.24 subdivision 18; 120A.20, subdivision 1; and 124D.02, subdivision 32.25 1, pupils four or five years of age on September 1 of the 32.26 calendar year in which the school year commences and enrolled in 32.27 a prekindergarten program implemented by the district before 32.28 July 1, 2003, may be reported as kindergarten pupils under 32.29 Minnesota Statutes, section 126C.05, subdivision 1, for fiscal 32.30 years 2004 and earlier. 32.31 [EFFECTIVE DATE.] This section is effective the day 32.32 following final enactment and applies to fiscal years 2004 and 32.33 earlier. 32.34 Sec. 30. [TRIAL TRANSPORTATION FEE.] 32.35 (a) Notwithstanding Minnesota Statutes, section 123B.37, 32.36 subdivision 1, clause (10), for fiscal years 2005, 2006, and 33.1 2007 only, a school board may require payment of fees for 33.2 transportation to and from school of any pupil transported, and 33.3 for all other transportation services not required by law, 33.4 subject to paragraphs (b) and (c). 33.5 (b) If a board charges fees for transportation of pupils 33.6 under this section, it must establish guidelines to ensure that 33.7 no pupil is denied transportation solely because of inability to 33.8 pay. Any transportation fees required must be applied equally 33.9 to public and nonpublic students transported within the district 33.10 and expended only for transportation services. The board may 33.11 require fees for students transported to charter schools or to 33.12 alternative attendance programs. 33.13 (c) A school board's total transportation fees for any 33.14 school year under this section may exceed the prior year's total 33.15 transportation fees only for payment of increased costs in 33.16 student transportation services or for expanding student 33.17 transportation services. 33.18 (d) This section expires June 30, 2007. 33.19 Sec. 31. [COMPENSATORY REVENUE ALLOCATION; TEST SCORE 33.20 PILOT PROGRAM.] 33.21 Subdivision 1. [PILOT PROGRAM CREATED.] Notwithstanding 33.22 Minnesota Statutes, section 126C.15, a three-year pilot program 33.23 is created to allow Independent School District No. 11, Anoka, 33.24 to allocate compensatory revenue received under Minnesota 33.25 Statutes, section 126C.10, subdivision 3, among its school 33.26 buildings according to each building's test scores and other 33.27 adequate yearly progress indicators for fiscal years 2005, 2006, 33.28 and 2007. 33.29 Subd. 2. [NOTIFICATION PROCEDURE.] In order to allocate 33.30 compensatory revenue to its school sites based on student 33.31 performance, Independent School District No. 11, Anoka, must 33.32 submit its plan to the commissioner of education by June 1, 33.33 2004. The plan must include a written resolution approved by 33.34 the school board that: (1) identifies the test results and 33.35 other indicators that will be used to assess student 33.36 performance; (2) describes the method for distribution of 34.1 compensatory revenue to the school sites; and (3) summarizes the 34.2 evaluation procedure the district will use to determine if the 34.3 redistribution of compensatory revenue improves overall student 34.4 performance and other adequate yearly progress indicators. 34.5 Subd. 3. [REPORT.] Independent School District No. 11, 34.6 Anoka, must submit a report by February 15 of each year, to the 34.7 education committees of the legislature and the commissioner of 34.8 education evaluating the effectiveness of the pilot program. 34.9 [EFFECTIVE DATE.] This section is effective the day 34.10 following final enactment. 34.11 Sec. 32. [SCHOOL BUS LEVY; CARPENTER SCHOOL BUSES.] 34.12 For taxes payable in 2005 through 2009, a school district 34.13 may levy an amount, not to exceed in the aggregate, $30,000 34.14 times the number of Carpenter school buses in its fleet that 34.15 have been determined to have potentially defective welds and are 34.16 subject to limitations imposed by the Minnesota Department of 34.17 Public Safety. 34.18 [EFFECTIVE DATE.] This section is effective for taxes 34.19 payable in 2005. 34.20 Sec. 33. [REPEALER.] 34.21 Minnesota Statutes 2002, section 126C.23, is repealed. 34.22 ARTICLE 2 34.23 ACADEMIC EXCELLENCE 34.24 Section 1. Minnesota Statutes 2002, section 13.321, 34.25 subdivision 1, is amended to read: 34.26 Subdivision 1. [SCOPE.] The sections referred to in 34.27 subdivisions 2 to911 are codified outside this chapter. Those 34.28 sections classify prekindergarten to grade 12 educational data 34.29 as other than public, place restrictions on access to government 34.30 data, or involve data sharing. 34.31 [EFFECTIVE DATE.] This section is effective the day 34.32 following final enactment. 34.33 Sec. 2. Minnesota Statutes 2002, section 13.321, is 34.34 amended by adding a subdivision to read: 34.35 Subd. 10. [TEACHER DATA FROM VALUE-ADDED ASSESSMENT 34.36 MODEL.] Data on individual teachers generated from a value-added 35.1 assessment model are governed under section 120B.362. 35.2 [EFFECTIVE DATE.] This section is effective the day 35.3 following final enactment. 35.4 Sec. 3. Minnesota Statutes 2002, section 13.321, is 35.5 amended by adding a subdivision to read: 35.6 Subd. 11. [SCHOOL ACCOUNTABILITY.] Data involving school 35.7 performance report cards and data involving adequate yearly 35.8 progress determinations are governed by section 120B.36. 35.9 [EFFECTIVE DATE.] This section is effective the day 35.10 following final enactment. 35.11 Sec. 4. [120A.23] [STUDENTS MUST ATTEND SCHOOL TO OBTAIN, 35.12 KEEP A DRIVER'S LICENSE OR PERMIT.] 35.13 (a) A board, by majority vote, may waive the requirement 35.14 under section 171.056 that its students must attend school to 35.15 obtain or keep their driver's licenses or permits. The board 35.16 must formally waive the requirement by September 30 of the first 35.17 school year in which the waiver applies. If a board wants to 35.18 rescind its waiver and require students to comply with section 35.19 171.056 in a subsequent school year, the board must vote to 35.20 rescind the waiver by September 30 of the first school year in 35.21 which the waiver no longer applies. 35.22 (b) For the purposes of this section, "board" means a 35.23 district school board, a board of a state-approved alternative 35.24 program, or a charter school board of directors. 35.25 Sec. 5. Minnesota Statutes 2003 Supplement, section 35.26 120B.024, is amended to read: 35.27 120B.024 [GRADUATION REQUIREMENTS; COURSE CREDITS.] 35.28 Subdivision 1. [REQUIRED NUMBER OF COURSE CREDITS.] 35.29 Students beginning 9th grade in the 2004-2005 school year and 35.30 later must successfully complete the following high school level 35.31 course credits for graduation: 35.32 (1) four credits of language arts; 35.33 (2) three credits of mathematics, encompassing at least 35.34 algebra, geometry, statistics, and probability sufficient to 35.35 satisfy the grades 9, 10, and 11 academicstandardstandards; 35.36 (3) three credits of science, including at least one credit 36.1 in biology; 36.2 (4) three and one-half credits of social studies,including36.3 encompassing at leastone credit ofUnited States history,one36.4credit ofgeography,0.5 credits ofgovernment and citizenship, 36.50.5 credits ofworld history, and0.5 credits ofeconomics or 36.6 three credits of social studies encompassing at least United 36.7 States history, geography, government and citizenship, and world 36.8 history, and one-half credit of economics taught in a school's 36.9 social studies or business department;and36.10 (5) one credit in the arts; and 36.11 (6) a minimum ofeightseven elective course credits,36.12including at least one credit in the arts. 36.13 A course credit is equivalent to astudent's successful36.14completion ofstudent successfully completing an academic year 36.15 of study or astudent's mastery ofstudent mastering the 36.16 applicable subject matter, as determined by the local school 36.17 district. 36.18 Subd. 2. [RIGOROUS COURSE OF STUDY; WAIVER.] (a) Upon 36.19 receiving a student's application approved by the student's 36.20 parent or guardian, and with the recommendation of the student's 36.21 teacher, a school district, area learning center, or charter 36.22 school must declare that a student has completed a content 36.23 standard if the local school board, the school board of the 36.24 school district in which the area learning center is located, or 36.25 charter school board of directors determines that: 36.26 (1) the student is participating in a course of study 36.27 including an advanced placement or international baccalaureate 36.28 course or a learning opportunity outside the curriculum of the 36.29 district, area learning center, or charter school that is 36.30 equally or more rigorous than the academic standard required by 36.31 the district, area learning center, charter school, or the state 36.32 required academic standards; and 36.33 (2) completing the grade-level benchmarks of the required 36.34 academic standards to be waived would preclude the student from 36.35 participating in the rigorous course of study or learning 36.36 opportunity. 37.1 (b) A student who satisfactorily completes a postsecondary 37.2 enrollment options course or program under section 124D.09, that 37.3 has been approved under paragraph (c), is not required to 37.4 complete other requirements of the required academic standards 37.5 corresponding to that specific rigorous course of study. 37.6 (c) By August 15, 2004, and each year thereafter, the Board 37.7 of Regents of the University of Minnesota, the Board of Trustees 37.8 of the Minnesota State Colleges and Universities, and the 37.9 governing boards of Minnesota private colleges shall determine 37.10 the courses offered at each postsecondary institution under the 37.11 postsecondary enrollment options program that meet the 37.12 requirements of paragraph (a) and shall notify the commissioner 37.13 of those courses offered that meet the requirements. The 37.14 commissioner shall make available a listing of the postsecondary 37.15 enrollment options courses offered at postsecondary institutions 37.16 meeting the requirements of this section. 37.17 (d) Notwithstanding paragraph (a) or (b), a student who 37.18 entered ninth grade before the 2003-2004 school year and 37.19 satisfactorily completes an advanced placement or international 37.20 baccalaureate course, or a postsecondary enrollment options 37.21 course under section 124D.09, satisfies the requirements of the 37.22 required academic standards corresponding to that specific 37.23 rigorous course of study. 37.24 Sec. 6. [120B.122] [READING RECORD.] 37.25 A school must include a reading record in the permanent 37.26 academic record of each kindergarten through grade 3 student. 37.27 The reading record must include a detailed screening that 37.28 identifies at least the reading strengths and weaknesses of the 37.29 student and progress in phonological awareness and other early 37.30 reading indicators. A school must record a student's reading 37.31 progress in the student's permanent academic record each year. 37.32 The reading record must also be included in the student's 37.33 permanent academic record that follows the student if the 37.34 student transfers to a new school or district. The 37.35 commissioner, with input from school districts, must develop a 37.36 sample form and content of the reading record. 38.1 Sec. 7. [120B.123] [STUDENT ACADEMIC PROGRESS.] 38.2 Subdivision 1. [STUDENT RETENTION.] (a) A public school or 38.3 charter school enrolling students in any grade kindergarten 38.4 through grade 6 must consider retaining a student without 38.5 promotion to the next grade level when the student in the 38.6 current year: 38.7 (1) was enrolled in school for at least 120 days and was 38.8 absent more than 20 percent of the class time during those days; 38.9 (2) achieved below grade level test scores on highly 38.10 reliable statewide or districtwide assessments; and 38.11 (3) based on the school's determination, did not master the 38.12 academic skills needed to succeed in the next grade. 38.13 The school must provide differentiated instruction whether or 38.14 not the student is retained in that same grade or promoted to 38.15 the next grade level. 38.16 (b) "Differentiated instruction" means an instructional 38.17 framework that allows classroom teachers to blend whole-class, 38.18 group, and individual instruction to best meet the individual 38.19 and diverse needs of the students in the classroom. A school 38.20 district or charter school must determine the scope of the 38.21 differentiated instruction. 38.22 Subd. 2. [APPEAL OF DECISIONS TO RETAIN A STUDENT.] After 38.23 meeting with the student, the student's parent or guardian, the 38.24 student's teacher or teachers, and the school principal or other 38.25 appropriate administrator to discuss the student's proposed 38.26 retention under subdivision 1, the principal or other 38.27 administrator must provide timely written notice to the student 38.28 and parent or guardian of the school's decision about promoting 38.29 or retaining the student. The student's parent or guardian has 38.30 20 days from the date of receiving the notice to submit a 38.31 written appeal of the decision to the school superintendent or 38.32 charter school director and must list the reasons for the 38.33 appeal. The school superintendent or charter school director 38.34 must give timely written notice to the student's parent or 38.35 guardian of the school superintendent's or charter school 38.36 director's decision regarding the appeal, which is a final 39.1 decision. 39.2 Subd. 3. [EXEMPTION.] A student with an individual 39.3 education plan under sections 125A.05 and 125A.06 and a pupil of 39.4 limited English proficiency under section 124D.59, subdivision 39.5 2, are exempt from this section. 39.6 Subd. 4. [SCHOOL POLICY.] A school board or charter school 39.7 board of directors must, by August 1, 2005, adopt a student 39.8 retention policy and procedure that includes the requirements 39.9 under this section. 39.10 [EFFECTIVE DATE.] This section is effective for the 39.11 2005-2006 school year and later. 39.12 Sec. 8. [120B.131] [GIFTED AND TALENTED PROGRAM 39.13 DEVELOPMENT AND STUDENT IDENTIFICATION.] 39.14 Subdivision 1. [PURPOSE.] The legislature finds that it is 39.15 critical for gifted and talented students to be identified and 39.16 appropriately served. 39.17 Subd. 2. [STUDENT IDENTIFICATION.] School districts are 39.18 strongly encouraged to identify and assess students for possible 39.19 placement in appropriate gifted and talented educational 39.20 services. Consideration in student identification includes: 39.21 (1) a balance of multiple objective and subjective 39.22 criteria, which may include performances as well as test 39.23 results; 39.24 (2) an ongoing, comprehensive district assessment system 39.25 that guides instruction and services offered; 39.26 (3) use of assessment instruments and procedures that are 39.27 valid and reliable and based on current theory and research; 39.28 (4) placement decisions that are fair and consistent, 39.29 valid, and reliable; 39.30 (5) provisions for informed consent, retention, 39.31 reassessment, exiting, and appeals; 39.32 (6) an open process available to all students; and 39.33 (7) an identification process and collected information 39.34 shared with parents, educational staff, and students themselves. 39.35 Sec. 9. [120B.135] [SCHOLARS OF DISTINCTION PROGRAM 39.36 ADMINISTRATION.] 40.1 (a) The commissioner shall expand the Minnesota scholars of 40.2 distinction program to include mathematics, leadership, and 40.3 theater arts in order to nurture and recognize distinguished 40.4 achievement by highly motivated students in those subjects. The 40.5 commissioner shall authorize the creation of statewide 40.6 coordinating boards to oversee the implementation of the 40.7 mathematics, leadership, and theater arts specialty areas for 40.8 the program. Each statewide coordinating board shall include 40.9 representatives of kindergarten through grade 12 schools, higher 40.10 education, businesses, or others familiar with applying complex 40.11 knowledge and skills to real-world problems in that specialty. 40.12 Each coordinating board shall manage and implement the program 40.13 so that as many kindergarten through grade 12 students as 40.14 possible who are willing to commit time, rigorous study, and 40.15 dedication to learning the specialty have the opportunity to 40.16 participate. Each coordinating board must establish a statewide 40.17 certification panel to determine whether students have met the 40.18 requirements for the particular specialty. The coordinating 40.19 boards must provide assistance, if requested, to schools, 40.20 community organizations, and other entities wishing to establish 40.21 the program. The coordinating boards are required to seek 40.22 permanent funding so that the scholars of distinction program 40.23 may be permanently continued in each specialty area. 40.24 (b) For each specialty, student participants must be 40.25 required to demonstrate mastery of complex subject matter and 40.26 apply their knowledge and skills on challenging projects. 40.27 Students who earn the scholar of distinction honor shall be 40.28 awarded a small scholarship, the amount of which shall be 40.29 determined by the coordinating board for the particular 40.30 specialty. A notation identifying the student as a Minnesota 40.31 scholar of distinction in a particular specialty must be made on 40.32 the transcript of each student who successfully completes the 40.33 program. 40.34 Sec. 10. Minnesota Statutes 2003 Supplement, section 40.35 120B.36, is amended to read: 40.36 120B.36 [SCHOOL ACCOUNTABILITY; APPEALS PROCESS.] 41.1 Subdivision 1. [SCHOOL PERFORMANCE REPORT CARDS.] (a) The 41.2 commissioner shall use objective criteria based on levels of 41.3 student performance to identify four to six designations 41.4 applicable to high and low performing public schools. The 41.5 objective criteria shall include at least student academic 41.6 performance, school safety, and staff characteristics, with a 41.7 value-added growth component added by the 2006-2007 school year. 41.8 (b) The commissioner shall develop, annually update, and 41.9 post on the department Web site school performance report cards. 41.10 A school's designation must be clearly stated on each school 41.11 performance report card. 41.12 (c) The commissioner must make available the first school 41.13 designations and school performance report cards by November 41.14 2003, and during the beginning of each school year thereafter. 41.15 (d) A school or district may appeal in writing a 41.16 designation under this section to the commissioner within 30 41.17 days of receiving the designation. The commissioner's decision 41.18 to uphold or deny an appeal is final. 41.19 (e) School performance report cards are nonpublic data 41.20 under section 13.02, subdivision 9, until the department posts 41.21 the data to its public Web site. The department shall annually 41.22 post school performance report cards to its public Web site no 41.23 later than September 1. 41.24 Subd. 2. [ADEQUATE YEARLY PROGRESS DATA.] All data the 41.25 department receives, collects, or creates for purposes of 41.26 determining adequate yearly progress designations under Public 41.27 Law 107-110, section 1116, are nonpublic data under section 41.28 13.02, subdivision 9, until the department posts the results of 41.29 its determinations concerning yearly progress designations to 41.30 its public Web site. Districts must provide parents 41.31 sufficiently detailed summary data to permit parents to appeal 41.32 under Public Law 107-110, section 1116(b)(2). The department 41.33 shall annually post adequate yearly progress data to its public 41.34 Web site no later than September 1. 41.35 [EFFECTIVE DATE.] This section is effective the day 41.36 following final enactment. 42.1 Sec. 11. [120B.362] [VALUE-ADDED ASSESSMENT PROGRAM.] 42.2 (a) The commissioner of education must develop a value 42.3 added assessment program to assist school districts, public 42.4 schools, and charter schools in assessing and reporting 42.5 students' growth in academic achievement under section 120B.30, 42.6 subdivision 1a. The program must use assessments of students' 42.7 academic achievement to make longitudinal comparisons of each 42.8 student's academic growth over time. School districts, public 42.9 schools, and charter schools may apply to the commissioner to 42.10 participate in the program using a form and in the manner the 42.11 commissioner prescribes. The commissioner must select program 42.12 participants from urban, suburban, and rural areas throughout 42.13 the state and no more than 125,000 students may participate. 42.14 (b) The commissioner may contract with an organization that 42.15 provides a value-added assessment model that reliably estimates 42.16 school and school district effects on students' academic 42.17 achievement over time for different classroom settings where a 42.18 single teacher teaches multiple subjects to the same group of 42.19 students, for team teaching arrangements, and for other teaching 42.20 circumstances. The data on individual teachers generated from a 42.21 value-added assessment model is private data under section 42.22 13.02, subdivision 12. The model the commissioner selects must 42.23 accommodate diverse data from various test sources and must use 42.24 each student's test data across grades and subjects even when 42.25 the data are incomplete. 42.26 (c) The contract under paragraph (b) must be consistent 42.27 with the definition of "best value" under section 16C.02, 42.28 subdivision 4. 42.29 [EFFECTIVE DATE.] This section is effective the day 42.30 following final enactment. 42.31 Sec. 12. [121A.032] [SCHOOL BOARD POLICY OPPOSING 42.32 BULLYING.] 42.33 Each school board must adopt a written district wide policy 42.34 that opposes bullying. Districts annually must notify students, 42.35 teachers, administrators, volunteers, contractors and other 42.36 school employees of this policy and, in those districts that 43.1 provide a student handbook, must publish the policy in the 43.2 student handbook. 43.3 [EFFECTIVE DATE.] This section is effective for the 43.4 2004-2005 school year and later. 43.5 Sec. 13. Minnesota Statutes 2002, section 121A.22, 43.6 subdivision 2, is amended to read: 43.7 Subd. 2. [EXCLUSIONS.] In addition, this section does not 43.8 apply to drugs or medicine that are: 43.9 (1)that can bepurchased without a prescription; 43.10 (2)that areused by a pupil who is 18 years old or older; 43.11 (3)that areused in connection with services for which a 43.12 minor may give effective consent, including section 144.343, 43.13 subdivision 1, and any other law; 43.14 (4)that areused in situations in which, in the judgment 43.15 of the school personnel who are present or available, the risk 43.16 to the pupil's life or health is of such a nature that drugs or 43.17 medicine should be given without delay; 43.18 (5)that areused off the school grounds; 43.19 (6)that areused in connection with athletics or extra 43.20 curricular activities; 43.21 (7)that areused in connection with activities that occur 43.22 before or after the regular school day; 43.23 (8)that areprovided or administered by a public health 43.24 agencyin orderto prevent or control an illness or a disease 43.25 outbreak as provided for in sections 144.05 and 144.12;or43.26 (9)that areprescription asthma or reactive airway disease 43.27 medications self-administered by a pupil with an asthma inhaler 43.28 if the district has received a written authorization from the 43.29 pupil's parent permitting the pupil to self-administer the 43.30 medication, the inhaler is properly labeled for that student, 43.31 and the parent has not requested school personnel to administer 43.32 the medication to the pupil. The parent must submit written 43.33 authorization for the pupil to self-administer the medication 43.34 each school year; or 43.35 (10) prescription nonsyringe injectors of epinephrine, 43.36 consistent with section 122A.2205, if the parent and prescribing 44.1 medical professional annually inform the pupil's school in 44.2 writing that (i) the pupil may possess the epinephrine or (ii) 44.3 the pupil is unable to possess the epinephrine and requires 44.4 immediate access to nonsyringe injectors of epinephrine that the 44.5 parent provides properly labeled to the school for the pupil as 44.6 needed. 44.7 [EFFECTIVE DATE.] This section is effective for the 44.8 2004-2005 school year and later. 44.9 Sec. 14. Minnesota Statutes 2002, section 121A.45, 44.10 subdivision 3, is amended to read: 44.11 Subd. 3. [PARENT NOTIFICATION AND MEETING.] If a pupil's 44.12 total days of removal from school exceeds ten cumulative days in 44.13 a school year, the school district shall make reasonable 44.14 attempts to convene a meeting with the pupil and the pupil's 44.15 parent or guardianprior tobefore subsequently removing the 44.16 pupil from school and, with the permission of the parent or 44.17 guardian, suggest arrangements for a mental health screening for 44.18 the pupil. The purpose of this meeting is to attempt to 44.19 determine the pupil's need for assessment or other services or 44.20 whether the parent or guardian should have the pupil screened, 44.21 assessed, or diagnosed to determine whether the pupil needs 44.22 treatment for a mental health disorder. 44.23 Sec. 15. Minnesota Statutes 2002, section 121A.48, is 44.24 amended to read: 44.25 121A.48 [GOOD FAITH EXCEPTION.] 44.26 A violation of the technical provisions of the Pupil Fair 44.27 Dismissal Act or of section 121A.032, made in good faith, is not 44.28 a defense to a disciplinary procedure under the act or section 44.29 121A.032 unless the pupil can demonstrate actual prejudice as a 44.30 result of the violation. 44.31 [EFFECTIVE DATE.] This section is effective for the 44.32 2004-2005 school year and later. 44.33 Sec. 16. Minnesota Statutes 2002, section 122A.06, 44.34 subdivision 4, is amended to read: 44.35 Subd. 4. [COMPREHENSIVE, SCIENTIFICALLY BASED READING 44.36 INSTRUCTION.]"Comprehensive, scientifically based reading45.1instruction" includes instruction and practice in phonemic45.2awareness, phonics and other word-recognition skills, and guided45.3oral reading for beginning readers, as well as extensive silent45.4reading, vocabulary instruction, instruction in comprehension,45.5and instruction that fosters understanding and higher-order45.6thinking for readers of all ages and proficiency45.7levels."Comprehensive, scientifically based reading 45.8 instruction" includes, at a minimum, a program or collection of 45.9 instructional practices with a proven record of success and with 45.10 reliable, trustworthy, and valid evidence to support the 45.11 conclusion that when these methods are used with learners, they 45.12 can be expected to achieve, at a minimum, satisfactory progress 45.13 in reading achievement. The program or collection of practices 45.14 must include, at a minimum, instruction in five areas of reading: 45.15 phonemic awareness, phonics, fluency, vocabulary, and text 45.16 comprehension. 45.17 Comprehensive, scientifically based reading instruction 45.18 also includes and integrates instructional strategies for 45.19 continuously assessing and diagnosing the learner's reading 45.20 progress and needs in order to design and implement ongoing 45.21 interventions so that learners of all ages and proficiency 45.22 levels can read and comprehend text as well as apply higher 45.23 level thinking skills. 45.24 Sec. 17. Minnesota Statutes 2003 Supplement, section 45.25 122A.09, subdivision 4, is amended to read: 45.26 Subd. 4. [LICENSE AND RULES.] (a) The board must adopt 45.27 rules to license public school teachers and interns subject to 45.28 chapter 14. 45.29 (b) The board must adopt rules requiring a person to 45.30 successfully complete a skills examination in reading, writing, 45.31 and mathematics as a requirement for initial teacher licensure. 45.32 Such rules must require college and universities offering a 45.33 board-approved teacher preparation program to provide remedial 45.34 assistance to persons who did not achieve a qualifying score on 45.35 the skills examination, including those for whom English is a 45.36 second language. 46.1 (c) The board must adopt rules to approve teacher 46.2 preparation programs. The board, upon the request of a 46.3 postsecondary student preparing for teacher licensure or a 46.4 licensed graduate of a teacher preparation program, shall assist 46.5 in resolving a dispute between the person and a postsecondary 46.6 institution providing a teacher preparation program when the 46.7 dispute involves an institution's recommendation for licensure 46.8 affecting the person or the person's credentials. At the 46.9 board's discretion, assistance may include the application of 46.10 chapter 14. 46.11 (d) The board must provide the leadership and shall adopt 46.12 rules for the redesign of teacher education programs to 46.13 implement a research based, results-oriented curriculum that 46.14 focuses on the skills teachers need in order to be effective. 46.15 The board shall implement new systems of teacher preparation 46.16 program evaluation to assure program effectiveness based on 46.17 proficiency of graduates in demonstrating attainment of program 46.18 outcomes. 46.19 (e) The board must adopt rules requiring successful 46.20 completion of an examination of general pedagogical knowledge 46.21 and examinations of licensure-specific teaching skills. The 46.22 rules shall be effective on the dates determined by the board 46.23 but not later than September 1, 2001. 46.24 (f) The board must adopt rules requiring teacher educators 46.25 to work directly with elementary or secondary school teachers in 46.26 elementary or secondary schools to obtain periodic exposure to 46.27 the elementary or secondary teaching environment. 46.28 (g) The board must grant licenses to interns and to 46.29 candidates for initial licenses. 46.30 (h) The board must design and implement an assessment 46.31 system which requires a candidate for an initial license and 46.32 first continuing license to demonstrate the abilities necessary 46.33 to perform selected, representative teaching tasks at 46.34 appropriate levels. 46.35 (i) The board must receive recommendations from local 46.36 committees as established by the board for the renewal of 47.1 teaching licenses. 47.2 (j) The board must grant life licenses to those who qualify 47.3 according to requirements established by the board, and suspend 47.4 or revoke licenses pursuant to sections 122A.20 and 214.10. The 47.5 board must not establish any expiration date for application for 47.6 life licenses. 47.7 (k) The board must adopt rules that require all licensed 47.8 teachers who are renewing their continuing license to include in 47.9 their renewal requirements further preparation in the areas of 47.10 using positive behavior interventions and in accommodating, 47.11 modifying, and adapting curricula, materials, and strategies to 47.12 appropriately meet the needs of individual students and ensure 47.13 adequate progress toward the state's graduation rule. 47.14 (l) In adopting rules to license public school teachers who 47.15 provide health-related services for disabled children, the board 47.16 shall adopt rules consistent with license or registration 47.17 requirements of the commissioner of health and the 47.18 health-related boards who license personnel who perform similar 47.19 services outside of the school. 47.20 (m) The board must adopt rules that require all licensed 47.21 teachers who are renewing their continuing license to include in 47.22 their renewal requirements further reading preparation, 47.23 consistent with section 122A.06, subdivision 4. The rules do 47.24 not take effect until they are approved by law. The Board of 47.25 Teaching may adopt rules to exempt teachers who do not provide 47.26 direct instruction including, at least, librarians, counselors, 47.27 school psychologists, school nurses, school social workers, 47.28 audiovisual directors and coordinators, recreation personnel, 47.29 media generalists, media supervisors, and speech language 47.30 pathologists. 47.31 (n) The board must adopt rules that require all licensed 47.32 teachers who are renewing their continuing license to include in 47.33 their renewal requirements further preparation in understanding 47.34 the key warning signs of early-onset mental illness in children 47.35 and adolescents. 47.36 [EFFECTIVE DATE.] This section is effective the day 48.1 following final enactment. 48.2 Sec. 18. Minnesota Statutes 2002, section 122A.12, is 48.3 amended by adding a subdivision to read: 48.4 Subd. 2a. [DISTRICT REIMBURSEMENT FOR COST OF SUBSTITUTE 48.5 TEACHER.] The board may reimburse a school district for the cost 48.6 of a substitute teacher employed when the regular classroom 48.7 teacher is providing professional assistance to the state by 48.8 serving on the Board of School Administrators. 48.9 Sec. 19. Minnesota Statutes 2002, section 122A.16, is 48.10 amended to read: 48.11 122A.16 [HIGHLY QUALIFIED TEACHER DEFINED.] 48.12 (a) A highly qualified teacheris one holdingholds a valid 48.13 license, under this chapter, to perform the particular service 48.14 for which the teacher is employed in a public school. 48.15 (b) A highly qualified teacher includes those teachers who 48.16 satisfy paragraph (b), (c), or (d) under this section so that 48.17 highly qualified teachers include: 48.18 (1) all elementary school teachers newly hired at the 48.19 beginning of the 2002-2003 school year or later to teach in a 48.20 Title I, Part A program who are licensed, hold at least a 48.21 bachelor's degree from an accredited postsecondary institution, 48.22 and pass a rigorous state test under section 122A.18 that 48.23 demonstrates subject knowledge and teaching skills in reading, 48.24 writing, mathematics, and other areas of the basic elementary 48.25 school curriculum; and 48.26 (2) all middle and secondary school teachers newly hired at 48.27 the beginning of the 2002-2003 school year or later to teach in 48.28 a Title I, Part A program who are licensed, hold at least a 48.29 bachelor's degree from an accredited postsecondary institution, 48.30 and demonstrate a high level of competency by (i) passing a 48.31 rigorous academic subject area test under section 122A.18 in 48.32 each core academic subject the teacher teaches, or (ii) 48.33 successfully completing, in each of the academic subjects in 48.34 which the teacher teaches, an academic major, a graduate degree, 48.35 course work equivalent to an academic major, or advanced 48.36 certification. 49.1 Except newly hired teachers under clauses (1) and (2), and 49.2 teachers in rural areas, all teachers, including elementary 49.3 school teachers, middle school content teachers, secondary 49.4 school content teachers, charter school teachers, vocational 49.5 education teachers, and bilingual and English as a second 49.6 language teachers, who provide direct instruction to students in 49.7 core academic subjects must satisfy the definition of a highly 49.8 qualified teacher under clause (1) or (2), as appropriate, by 49.9 the end of the 2005-2006 school year or through the High 49.10 Objective Uniform State Standard of Evaluation (HOUSSE) process. 49.11 Teachers in rural areas, including elementary school 49.12 teachers, middle school content teachers, secondary school 49.13 content teachers, charter school teachers, vocational education 49.14 teachers, and bilingual and English as a second language 49.15 teachers, who provide direct instruction to students in core 49.16 academic subjects must satisfy the definition of a highly 49.17 qualified teacher under clause (1) or (2), as appropriate, by 49.18 the end of the 2006-2007 school year, or through the High 49.19 Objective Uniform State Standard of Evaluation (HOUSSE) process. 49.20 Core academic subjects under this section include English, 49.21 reading, or language arts; mathematics; sciences; world 49.22 languages; civics and government; economics; history; and arts 49.23 including music, visual arts, theater arts, and dance. 49.24 (c) All Minnesota teachers holding licenses and teaching in 49.25 a core academic subject area in which they are licensed as 49.26 reported under the state's STAR system, are highly qualified. 49.27 (d) All Minnesota teachers teaching in a core academic 49.28 subject area in which they are not fully licensed are not highly 49.29 qualified and may complete the following HOUSSE process in the 49.30 core subject area for which the teacher is requesting highly 49.31 qualified status by completing an application, in the form and 49.32 manner described by the commissioner, that includes: 49.33 (1) documentation of student achievement that demonstrates 49.34 at least one year of academic growth as evidenced by 49.35 norm-referenced test results that are objective and 49.36 psychometrically valid and reliable; 50.1 (2) evidence of local, state, or national activities, 50.2 recognition, or awards for professional contribution to 50.3 achievement; 50.4 (3) description of teaching experience in the teachers' 50.5 core subject area in a public school under a waiver, variance, 50.6 limited license or other exception; nonpublic school; and 50.7 postsecondary institution: 50.8 (4) test results from the Praxis II content test; 50.9 (5) evidence of advanced certification from organizations, 50.10 such as the National Board for Professional Teaching Standards 50.11 (NBPTS) or the American Board for Certification of Teaching 50.12 Excellence (ABCTE); 50.13 (6) evidence of the successful completion of course work or 50.14 pedagogy courses; and 50.15 (7) evidence of the successful completion of high quality 50.16 professional development activities. 50.17 Districts must assign a school administrator to serve as a 50.18 HOUSSE reviewer to meet with teachers under this paragraph and, 50.19 where appropriate, certify the teachers' applications. Teachers 50.20 satisfy the definition of highly qualified when the teachers 50.21 receive at least 100 of the total number of points used to 50.22 measure the teachers' content expertise under clauses (1) to 50.23 (7). Teachers may use the HOUSSE process to satisfy the 50.24 definition of highly qualified for more than one subject area in 50.25 a single academic discipline. 50.26 [EFFECTIVE DATE.] This section is effective the day 50.27 following final enactment. 50.28 Sec. 20. Minnesota Statutes 2002, section 122A.18, 50.29 subdivision 2a, is amended to read: 50.30 Subd. 2a. [READING STRATEGIES.] (a) All colleges and 50.31 universities approved by the Board of Teaching to prepare 50.32 persons for classroom teacher licensure must include in their 50.33 teacher preparation programsreading best practices that enable50.34classroom teacher licensure candidates to know how to teach50.35reading, such as phonics or otherresearch-based best practices 50.36 in reading, consistent with section 122A.06, subdivision 4, that 51.1 enable the licensure candidate to know how to teach reading in 51.2 the candidate's content areas. 51.3 (b) Board-approved teacher preparation programs for 51.4 teachers of elementary education must require instruction in the 51.5 application of comprehensive, scientifically based, and balanced 51.6 reading instruction programs.that: 51.7 (1) teach students to read using foundational knowledge, 51.8 practices, and strategies consistent with section 122A.06, 51.9 subdivision 4, so that all students will achieve continuous 51.10 progress in reading; and 51.11 (2) teach specialized instruction in reading strategies, 51.12 interventions, and remediations that enable students of all ages 51.13 and proficiency levels to become proficient readers. 51.14 Sec. 21. Minnesota Statutes 2002, section 122A.18, is 51.15 amended by adding a subdivision to read: 51.16 Subd. 2c. [LITERACY SPECIALIST LICENSURE.] No later than 51.17 July 1, 2005, the Board of Teaching must adopt rules providing 51.18 for licensing literacy specialists who possess sufficient 51.19 training and experience to assist teachers of reading and other 51.20 teachers throughout the district or at a school site to 51.21 effectively teach students to read. Candidates for licensure 51.22 must successfully complete training in comprehensive, 51.23 scientifically based reading instruction consistent with section 51.24 122A.06, subdivision 4, and a graduate level degree in reading 51.25 or literacy. 51.26 Sec. 22. Minnesota Statutes 2002, section 122A.20, 51.27 subdivision 2, is amended to read: 51.28 Subd. 2. [MANDATORY REPORTING.] A school board must report 51.29 to the Board of Teaching, the Board of School Administrators, or 51.30 the Board of Trustees of the Minnesota State Colleges and 51.31 Universities, whichever has jurisdiction over the teacher's or 51.32 administrator's license, when its teacher or administrator is 51.33 discharged or resigns from employment after a charge is filed 51.34 with the school board under section 122A.41, subdivisions 6, 51.35 clauses (1), (2), and (3), and 7, or after charges are filed 51.36 that are ground for discharge under section 122A.40, subdivision 52.1 13, paragraph (a), clauses (1) to (5), or when a teacher or 52.2 administrator is suspended or resigns while an investigation is 52.3 pending under section 122A.40, subdivision 13, paragraph (a) 52.4 clauses (1) to (5); 122A.41, subdivisions 6, clauses (1), (2), 52.5 and (3), and 7; or 626.556, or when a teacher or administrator 52.6 is suspended without an investigation under section 122A.41, 52.7 subdivisions 6, paragraph (a), clauses (1), (2), and (3), and 7; 52.8 or 626.556. The report must be made to the appropriate 52.9 licensing board within ten days after the discharge, suspension, 52.10 or resignation has occurred. The licensing board to which the 52.11 report is made must investigate the report for violation of 52.12 subdivision 1 and the reporting board must cooperate in the 52.13 investigation. Notwithstanding any provision in chapter 13 or 52.14 any law to the contrary, upon written request from the licensing 52.15 board having jurisdiction over the license, a board or school 52.16 superintendent shall provide the licensing board with 52.17 information about the teacher or administrator from the 52.18 district's files, any termination or disciplinary proceeding, 52.19 any settlement or compromise, or any investigative file. Upon 52.20 written request from the appropriate licensing board, a board or 52.21 school superintendent may, at the discretion of the board or 52.22 school superintendent, solicit the written consent of a student 52.23 and the student's parent to provide the licensing board with 52.24 information that may aid the licensing board in its 52.25 investigation and license proceedings. The licensing board's 52.26 request need not identify a student or parent by name. The 52.27 consent of the student and the student's parent must meet the 52.28 requirements of chapter 13 and Code of Federal Regulations, 52.29 title 34, section 99.30. The licensing board may provide a 52.30 consent form to the district. Any data transmitted to any board 52.31 under this section is private data under section 13.02, 52.32 subdivision 12, notwithstanding any other classification of the 52.33 data when it was in the possession of any other agency. 52.34 The licensing board to which a report is made must transmit 52.35 to the Attorney General's Office any record or data it receives 52.36 under this subdivision for the sole purpose of having the 53.1 Attorney General's Office assist that board in its 53.2 investigation. When the Attorney General's Office has informed 53.3 an employee of the appropriate licensing board in writing that 53.4 grounds exist to suspend or revoke a teacher's license to teach, 53.5 that licensing board must consider suspending or revoking or 53.6 decline to suspend or revoke the teacher's or administrator's 53.7 license within 45 days of receiving a stipulation executed by 53.8 the teacher or administrator under investigation or a 53.9 recommendation from an administrative law judge that 53.10 disciplinary action be taken. 53.11 Sec. 23. [122A.2205] [POSSESSION AND USE OF NONSYRINGE 53.12 INJECTORS OF EPINEPHRINE; MODEL POLICY.] 53.13 (a) At the start of each school year or at the time a 53.14 student enrolls in school, whichever is first, a student's 53.15 parent, school staff including those responsible for student 53.16 health care, and the prescribing medical professional must 53.17 develop and implement an individualized written health plan for 53.18 a student who is prescribed nonsyringe injectors of epinephrine 53.19 that enables the student to: 53.20 (1) possess nonsyringe injectors of epinephrine; or 53.21 (2) if the parent and prescribing medical professional 53.22 determine the student is unable to possess the epinephrine, have 53.23 immediate access to nonsyringe injectors of epinephrine in 53.24 school. 53.25 The plan must designate the school staff responsible for 53.26 implementing the student's health plan, including administering 53.27 nonsyringe injectors of epinephrine when required, consistent 53.28 with section 121A.22, subdivision 2, clause (10). This health 53.29 plan may be included in a student's 504 plan. 53.30 (b) A school under this section is a public school under 53.31 section 120A.22, subdivision 4, or a nonpublic school, excluding 53.32 a home school, under section 120A.22, subdivision 4, that is 53.33 subject to the federal Americans with Disabilities Act. Other 53.34 nonpublic schools are encouraged to develop and implement an 53.35 individualized written health plan for students requiring 53.36 nonsyringe injectors of epinephrine, consistent with this 54.1 section and section 121A.22, subdivision 2, clause (10). 54.2 (c) A school district and its agents and employees are 54.3 immune from liability for any act or failure to act, made in 54.4 good faith, in implementing this section. 54.5 (d) The education commissioner may develop and transmit to 54.6 interested schools a model policy and individualized health plan 54.7 form consistent with this section and federal 504 plan 54.8 requirements. The policy and form may: 54.9 (1) assess a student's ability to safely possess nonsyringe 54.10 injectors of epinephrine; 54.11 (2) identify staff training needs related to recognizing 54.12 anaphylaxis and administering epinephrine when needed; 54.13 (3) accommodate a student's need to possess or have 54.14 immediate access to nonsyringe injectors of epinephrine in 54.15 school; and 54.16 (4) ensure that the student's parent provides properly 54.17 labeled nonsyringe injectors of epinephrine to the school for 54.18 the student as needed. 54.19 [EFFECTIVE DATE.] This section is effective for the 54.20 2004-2005 school year and later. 54.21 Sec. 24. [122A.245] [TEACHER TRAINING PROGRAM FOR 54.22 QUALIFIED PROFESSIONALS.] 54.23 Subdivision 1. [REQUIREMENTS.] (a) As an alternative to 54.24 postsecondary teacher preparation programs and alternative 54.25 preparation licensing for teachers under section 122A.24, a 54.26 teacher training program is established for qualified 54.27 professionals to acquire an entrance license. Providers, 54.28 approved by the commissioner under subdivision 3, may offer the 54.29 program to train a maximum of 300 teachers per year in the 54.30 instructional fields of special education, science, math, 54.31 reading, English as a second language, communication arts and 54.32 literature, business, world languages, and library and media 54.33 specialist. 54.34 (b) To participate in the teacher training program, the 54.35 applicant must: 54.36 (1) have a bachelor's degree from an accredited four-year 55.1 postsecondary institution; 55.2 (2) have an undergraduate major or postbaccalaureate degree 55.3 in the subject to be taught or have equivalent academic 55.4 qualifications in the subject area in which the applicant is 55.5 seeking licensure; 55.6 (3) have a minimum of five years of professional employment 55.7 in a subject area related to the subject area in which the 55.8 applicant is seeking licensure; and 55.9 (4) pass a skills exam in reading, writing, and mathematics 55.10 under section 122A.18. 55.11 (c) Teachers currently teaching under a variance issued by 55.12 the Board of Teaching may apply to participate in this program. 55.13 Subd. 2. [PROGRAM.] The teacher training program must 55.14 include: 55.15 (1) 200 clock hours of intensive training in classroom 55.16 management, curriculum, and instruction; and 55.17 (2) a minimum of five seminars totaling at least 20 clock 55.18 hours during the applicant's first year of teaching. 55.19 Subd. 3. [PROGRAM APPROVAL.] The commissioner must approve 55.20 teacher training programs under this section based on criteria 55.21 developed by an advisory group appointed by the commissioner. 55.22 The advisory group at least must include representatives of the 55.23 Board of Teaching, school superintendents, and postsecondary 55.24 institutions, including those offering degrees in teacher 55.25 preparation. 55.26 By January 15, 2005, the commissioner must report to the 55.27 legislative committees with responsibility for higher education 55.28 on the criteria for teacher training programs developed by the 55.29 advisory group under this subdivision. 55.30 An approved teacher training program must require program 55.31 participants to complete the standards of effective practice for 55.32 teachers under Minnesota Rules, part 8710.2000. 55.33 Subd. 4. [PROGRAM DELIVERY.] Postsecondary institutions 55.34 and district-created teacher academies, among other entities, 55.35 may apply to the commissioner in the form and manner the 55.36 commissioner indicates, to deliver a teacher training program 56.1 under this section to train a maximum of 300 teachers per year. 56.2 Subd. 5. [ELIGIBILITY LICENSE.] An applicant who 56.3 successfully completes the training under subdivision 2, clause 56.4 (1), and passes the Praxis II content exam under section 56.5 122A.09, subdivision 4, paragraph (e), may receive a one-year 56.6 eligibility license and begin teaching. During the one-year 56.7 eligibility period, the district must assign a teacher who holds 56.8 a regular teaching license to mentor the applicant teacher. The 56.9 applicant teacher and teacher mentor must meet at least once 56.10 every week. 56.11 Subd. 6. [STANDARD ENTRANCE LICENSE.] The Board of 56.12 Teaching must issue a standard entrance license to a training 56.13 program licensee who successfully completes the program under 56.14 subdivision 2, successfully teaches in a classroom for one 56.15 complete school year, passes the Praxis II pedagogy test, and 56.16 receives a positive recommendation from the applicant's school 56.17 principal or other district or school administrator. 56.18 Subd. 7. [QUALIFIED TEACHER.] A person with a valid 56.19 eligibility license under subdivision 5 is a qualified teacher 56.20 under section 122A.16. 56.21 Subd. 8. [EVALUATION AND REPORT.] The Office of the 56.22 Legislative Auditor must evaluate the program under this section 56.23 and report its findings to the education policy and finance 56.24 committees in the legislature by February 1, 2008, and each 56.25 three years thereafter on February 1. 56.26 Sec. 25. Minnesota Statutes 2002, section 123B.02, 56.27 subdivision 14, is amended to read: 56.28 Subd. 14. [EMPLOYEES; CONTRACTS FOR SERVICES.] (a) The 56.29 board may employ and discharge necessary employees and may 56.30 contract for other services. Notwithstanding any other law to 56.31 the contrary, it shall be an inherent managerial right of the 56.32 board to unilaterally contract or subcontract for services 56.33 unless the power to contract or subcontract is specifically 56.34 prohibited by collective bargaining agreements with all units of 56.35 affected employees. 56.36 (b) Notwithstanding any law to the contrary, when the 57.1 exclusive representative and the employer have been negotiating 57.2 a contract or subcontract for services as set out in the 57.3 collective bargaining agreement and have participated in 57.4 mediation over a period of at least 45 days, either party may 57.5 declare an impasse and terminate the negotiation and the 57.6 collective bargaining agreement shall conclusively be determined 57.7 to be expired. After the collective bargaining agreement 57.8 expires under this paragraph, the employer may contract with any 57.9 other persons and entities for the services. 57.10 (c) For the purposes of paragraph (b), the mediation period 57.11 begins on the day after the commissioner of the Bureau of 57.12 Mediation Services receives a request for mediation. 57.13 (d) Paragraphs (b), (c), and (d) apply to all agreements 57.14 between the board and collective bargaining representatives 57.15 except teachers as defined in section 179A.03, subdivision 18, 57.16 and school superintendents, assistant superintendents, school 57.17 principals, and assistant principals. 57.18 [EFFECTIVE DATE.] This section is effective for contracts 57.19 negotiated and entered into on or after July 1, 2004, and 57.20 contracts beginning negotiation, but not entered into, before 57.21 July 1, 2004. 57.22 Sec. 26. Minnesota Statutes 2002, section 123B.09, 57.23 subdivision 8, is amended to read: 57.24 Subd. 8. [DUTIES.] The board must superintend and manage 57.25 the schools of the district; adopt rules for their organization, 57.26 government, and instruction; keep registers; and prescribe 57.27 textbooks and courses of study. The board may enter into an 57.28 agreement with a postsecondary institution for secondary or 57.29 postsecondary nonsectarian courses to be taught at a secondary 57.30 school, nonsectarian postsecondary institution, or another 57.31 location. The board must not enter into an agreement that 57.32 limits a district superintendent's duty to assign and reassign 57.33 teachers or administrators to the schools in which the teachers 57.34 will teach or the administrators will administer except that the 57.35 board may reserve assignment and reassignment rights for 57.36 purposes of entering into a school site decision making 58.1 agreement under section 123B.04. 58.2 [EFFECTIVE DATE.] This section is effective for agreements 58.3 entered into on or after July 1, 2004. 58.4 Sec. 27. Minnesota Statutes 2002, section 123B.143, 58.5 subdivision 1, is amended to read: 58.6 Subdivision 1. [CONTRACT; DUTIES.] All districts 58.7 maintaining a classified secondary school must employ a 58.8 superintendent who shall be an ex officio nonvoting member of 58.9 the school board. The authority for selection and employment of 58.10 a superintendent must be vested in the board in all cases. An 58.11 individual employed by a board as a superintendent shall have an 58.12 initial employment contract for a period of time no longer than 58.13 three years from the date of employment. Any subsequent 58.14 employment contract must not exceed a period of three years. A 58.15 board, at its discretion, may or may not renew an employment 58.16 contract. A board must not, by action or inaction, extend the 58.17 duration of an existing employment contract. Beginning 365 days 58.18 prior to the expiration date of an existing employment contract, 58.19 a board may negotiate and enter into a subsequent employment 58.20 contract to take effect upon the expiration of the existing 58.21 contract. A subsequent contract must be contingent upon the 58.22 employee completing the terms of an existing contract. If a 58.23 contract between a board and a superintendent is terminated 58.24 prior to the date specified in the contract, the board may not 58.25 enter into another superintendent contract with that same 58.26 individual that has a term that extends beyond the date 58.27 specified in the terminated contract. A board may terminate a 58.28 superintendent during the term of an employment contract for any 58.29 of the grounds specified in section 122A.40, subdivision 9 or 13. 58.30 A superintendent shall not rely upon an employment contract with 58.31 a board to assert any other continuing contract rights in the 58.32 position of superintendent under section 122A.40. 58.33 Notwithstanding the provisions of sections 122A.40, subdivision 58.34 10 or 11, 123A.32, 123A.75, or any other law to the contrary, no 58.35 individual shall have a right to employment as a superintendent 58.36 based on order of employment in any district. If two or more 59.1 districts enter into an agreement for the purchase or sharing of 59.2 the services of a superintendent, the contracting districts have 59.3 the absolute right to select one of the individuals employed to 59.4 serve as superintendent in one of the contracting districts and 59.5 no individual has a right to employment as the superintendent to 59.6 provide all or part of the services based on order of employment 59.7 in a contracting district. The superintendent of a district 59.8 shall perform the following: 59.9 (1) visit and supervise the schools in the district, report 59.10 and make recommendations about their condition when advisable or 59.11 on request by the board; 59.12 (2) recommend to the board employment and dismissal of 59.13 teachers; 59.14 (3) before the start of the school year, and at other times 59.15 as needed, assign teachers or administrators to schools to best 59.16 meet student and school needs as determined by the 59.17 superintendent; 59.18 (4) superintend school grading practices and examinations 59.19 for promotions; 59.20(4)(5) make reports required by the commissioner; 59.21(5) by January 10, submit an annual report to the59.22commissioner in a manner prescribed by the commissioner, in59.23consultation with school districts, identifying the expenditures59.24that the district requires to ensure an 80 percent student59.25passage rate on the basic standards test taken in the eighth59.26grade, identifying the highest student passage rate the district59.27expects it will be able to attain on the basic standards test by59.28grade 12, the amount of expenditures that the district requires59.29to attain the targeted student passage rate, and how much the59.30district is cross-subsidizing programs with special education,59.31basic skills, and general education revenue;and 59.32 (6) perform other duties prescribed by the board. 59.33 [EFFECTIVE DATE.] This section is effective the day 59.34 following final enactment. 59.35 Sec. 28. Minnesota Statutes 2002, section 123B.195, is 59.36 amended to read: 60.1 123B.195 [BOARD MEMBERS' RIGHT TO EMPLOYMENT.] 60.2 Notwithstanding section 471.88, subdivision 5, a school 60.3 board member may be newly employed or may continue to be 60.4 employed by a school district as an employee only if there is a 60.5 reasonable expectation at the beginning of the fiscal year or at 60.6 the time the contract is entered into or extended that the 60.7 amount to be earned by that officer under that contract or 60.8 employment relationship will not exceed$5,000$8,000 in that 60.9 fiscal year. Notwithstanding section 122A.40 or 122A.41 or 60.10 other law, if the officer does not receive majority approval to 60.11 be initially employed or to continue in employment at a meeting 60.12 at which all board members are present, that employment is 60.13 immediately terminated and that officer has no further rights to 60.14 employment while serving as a school board member in the 60.15 district. 60.16 [EFFECTIVE DATE.] This section is effective July 1, 2004. 60.17 Sec. 29. Minnesota Statutes 2002, section 123B.36, 60.18 subdivision 1, is amended to read: 60.19 Subdivision 1. [SCHOOL BOARDS MAY REQUIRE FEES.] (a) For 60.20 purposes of this subdivision, "home school" means a home school 60.21 as defined in sections 120A.22 and 120A.24 with five or fewer 60.22 students receiving instruction. 60.23 (b) A school board is authorized to require payment of fees 60.24 in the following areas: 60.25 (1) in any program where the resultant product, in excess 60.26 of minimum requirements and at the pupil's option, becomes the 60.27 personal property of the pupil; 60.28 (2) admission fees or charges for extra curricular 60.29 activities, where attendance is optional and where the admission 60.30 fees or charges a student must pay to attend or participate in 60.31 an extracurricular activity is the same for all students, 60.32 regardless of whether the student is enrolled in a public or a 60.33 home school; 60.34 (3) a security deposit for the return of materials, 60.35 supplies, or equipment; 60.36 (4) personal physical education and athletic equipment and 61.1 apparel, although any pupil may personally provide it if it 61.2 meets reasonable requirements and standards relating to health 61.3 and safety established by the board; 61.4 (5) items of personal use or products that a student has an 61.5 option to purchase such as student publications, class rings, 61.6 annuals, and graduation announcements; 61.7 (6) fees specifically permitted by any other statute, 61.8 including but not limited to section 171.05, subdivision 2; 61.9 provided (i) driver education fees do not exceed the actual cost 61.10 to the school and school district of providing driver education, 61.11 and (ii) the driver education courses are open to enrollment to 61.12 persons between the ages of 15 and 18 who reside or attend 61.13 school in the school district; 61.14 (7) field trips considered supplementary to a district 61.15 educational program; 61.16 (8) any authorized voluntary student health and accident 61.17 benefit plan; 61.18 (9) for the use of musical instruments owned or rented by 61.19 the district, a reasonable rental fee not to exceed either the 61.20 rental cost to the district or the annual depreciation plus the 61.21 actual annual maintenance cost for each instrument; 61.22 (10) transportation of pupils to and from extra curricular 61.23 activities conducted at locations other than school, where 61.24 attendance is optional, and transportation of charter school 61.25 students participating in extracurricular activities in their 61.26 resident district under section 123B.49, subdivision 4, 61.27 paragraph (a), which must be charged to the charter school; 61.28 (11) transportation to and from school of pupils living 61.29 within two miles from school and all other transportation 61.30 services not required by law. If a district charges fees for 61.31 transportation of pupils, it must establish guidelines for that 61.32 transportation to ensure that no pupil is denied transportation 61.33 solely because of inability to pay; 61.34 (12) motorcycle classroom education courses conducted 61.35 outside of regular school hours; provided the charge must not 61.36 exceed the actual cost of these courses to the school district; 62.1 (13) courses, programs, and other activities directed, 62.2 conducted, or supervised by school staff that are unrelated to 62.3 high school graduation, summer school classes under section 62.4 120B.122, or other necessary education-related goods and 62.5 services and are provided at times other than during the school 62.6 year; 62.7 (14) transportation to and from postsecondary institutions 62.8 for pupils enrolled under the postsecondary enrollment options 62.9 program under section 123B.88, subdivision 22. Fees collected 62.10 for this service must be reasonable and must be used to reduce 62.11 the cost of operating the route. Families who qualify for 62.12 mileage reimbursement under section 124D.09, subdivision 22, may 62.13 use their state mileage reimbursement to pay this fee. If no 62.14 fee is charged, districts must allocate costs based on the 62.15 number of pupils riding the route. 62.16 [EFFECTIVE DATE.] Paragraph (b), clause (13), is effective 62.17 the day following final enactment. 62.18 Sec. 30. Minnesota Statutes 2002, section 123B.49, 62.19 subdivision 4, is amended to read: 62.20 Subd. 4. [BOARD CONTROL OF EXTRACURRICULAR ACTIVITIES.] 62.21 (a) The board may take charge of and control all extracurricular 62.22 activities of the teachers and children of the public schools in 62.23 the district. Extracurricular activities means all direct and 62.24 personal services for pupils for their enjoyment that are 62.25 managed and operated under the guidance of an adult or staff 62.26 member. The board shall allow all resident pupils receiving 62.27 instruction in a home school as defined in section 123B.36, 62.28 subdivision 1, paragraph (a), and all resident pupils receiving 62.29 instruction in a charter school as defined in section 124D.10 to 62.30 be eligible to fully participate in extracurricular activities 62.31 on the same basis as public school students enrolled in the 62.32 district's schools. A charter school student must give the 62.33 enrolling charter school at least a 30-day notice of the 62.34 student's intent to participate in an extracurricular activity 62.35 in the resident district. A charter school student is not 62.36 eligible to participate in an extracurricular activity in the 63.1 resident district if that extracurricular activity is offered by 63.2 the enrolling charter school. Charter school students 63.3 participating in extracurricular activities must meet the 63.4 academic and student conduct requirements of the resident 63.5 district. The charter school must: 63.6 (1) collect the same information that a district collects 63.7 on a student's eligibility to participate in an extracurricular 63.8 activity; 63.9 (2) transmit that information to the district at least ten 63.10 days before a student begins to participate in the 63.11 extracurricular activity; and 63.12 (3) immediately transmit to the district any additional 63.13 information affecting the student's eligibility. 63.14 (b) Extracurricular activities have all of the following 63.15 characteristics: 63.16 (1) they are not offered for school credit nor required for 63.17 graduation; 63.18 (2) they are generally conducted outside school hours, or 63.19 if partly during school hours, at times agreed by the 63.20 participants, and approved by school authorities; 63.21 (3) the content of the activities is determined primarily 63.22 by the pupil participants under the guidance of a staff member 63.23 or other adult. 63.24 (c) If the board does not take charge of and control 63.25 extracurricular activities, these activities shall be 63.26 self-sustaining with all expenses, except direct salary costs 63.27 and indirect costs of the use of school facilities, met by dues, 63.28 admissions, or other student fund-raising events. The general 63.29 fund must reflect only those salaries directly related to and 63.30 readily identified with the activity and paid by public funds. 63.31 Other revenues and expenditures for extra curricular activities 63.32 must be recorded according to the "Manualof Instructionfor 63.33Uniform Student ActivitiesActivity Fund Accountingfor63.34Minnesota School Districts and Area Vocational-Technical63.35Colleges." Extracurricular activities not under board control 63.36 must have an annual financial audit and must also be audited 64.1 annually for compliance with this section. 64.2 (d) If the board takes charge of and controls 64.3 extracurricular activities, any or all costs of these activities 64.4 may be provided from school revenues and all revenues and 64.5 expenditures for these activities shall be recorded in the same 64.6 manner as other revenues and expenditures of the district. 64.7 (e) If the board takes charge of and controls 64.8 extracurricular activities, the teachers or pupils in the 64.9 district must not participate in such activity, nor shall the 64.10 school name or any allied name be used in connection therewith, 64.11 except by consent and direction of the board. 64.12 (f) School districts may charge charter schools their 64.13 proportional share of the direct and indirect costs of the 64.14 extracurricular activities that are not covered by student fees 64.15 under section 123B.36, subdivision 1. A district may charge 64.16 charter school students the same fees it charges enrolled 64.17 students to participate in an extracurricular activity. A 64.18 district is not required to provide transportation from the 64.19 charter school to the resident district to a charter school 64.20 student who participates in an extracurricular activity in the 64.21 resident district. 64.22 [EFFECTIVE DATE.] This section is effective for the 64.23 2004-2005 school year and later. 64.24 Sec. 31. Minnesota Statutes 2003 Supplement, section 64.25 124D.095, subdivision 8, is amended to read: 64.26 Subd. 8. [FINANCIAL ARRANGEMENTS.] (a) For a student 64.27 enrolled in an on-line learning course, the department must 64.28 calculate average daily membership and make payments according 64.29 to this subdivision. 64.30 (b) The initial on-line learning average daily membership 64.31 equals 1/12 for each semester course or a proportionate amount 64.32 for courses of different lengths. The adjusted on-line learning 64.33 average daily membership equals the initial on-line learning 64.34 average daily membership times .88. 64.35 (c) No on-line learning average daily membership shall be 64.36 generated if: (1) the student does not complete the on-line 65.1 learning course, or (2) the student is enrolled in on-line 65.2 learning provided by the enrolling district and the student 65.3 was either enrolled in a Minnesota public school for the school 65.4 year before the school year in which the student first enrolled 65.5 in on-line learning, or the student is enrolled in an 65.6 instructional program in which at least 40 percent of the total 65.7 instructional time takes place in the school's facilities. For 65.8 students enrolled in on-line learning according to clause (2), 65.9 the department shall calculate average daily membership 65.10 according to section 126C.05, subdivision 8. 65.11 (d) On-line learning average daily membership under this 65.12 subdivision for a student currently enrolled in a Minnesota 65.13 public school and who was enrolled in a Minnesota public school 65.14 for the school year before the school year in which the student 65.15 first enrolled in on-line learning shall be used only for 65.16 computing average daily membership according to section 126C.05, 65.17 subdivision 19, paragraph (a), clause(ii)(2), and for 65.18 computing on-line learning aid according to section 126C.24. 65.19 (e) On-line learning average daily membership under this 65.20 subdivision for students not included in paragraph (c) or (d) 65.21 shall be used only for computing average daily membership 65.22 according to section 126C.05, subdivision 19, paragraph (a), 65.23 clause(ii)(2), and for computing payments under paragraphs (f) 65.24 and (g). 65.25 (f) Subject to the limitations in this subdivision, the 65.26 department must pay an on-line learning provider an amount equal 65.27 to the product of the adjusted on-line learning average daily 65.28 membership for students under paragraph (e) times the student 65.29 grade level weighting under section 126C.05, subdivision 1, 65.30 times the formula allowance. 65.31 (g) The department must pay each on-line learning provider 65.32 100 percent of the amount in paragraph (f) within 45 days of 65.33 receiving final enrollment and course completion information 65.34 each quarter or semester. 65.35 [EFFECTIVE DATE.] This section is effective the day 65.36 following final enactment. 66.1 Sec. 32. Minnesota Statutes 2003 Supplement, section 66.2 124D.10, subdivision 3, is amended to read: 66.3 Subd. 3. [SPONSOR.] (a) A school board; intermediate 66.4 school district school board; education district organized under 66.5 sections 123A.15 to 123A.19; charitable organization under 66.6 section 501(c)(3) of the Internal Revenue Code of 1986 that is a 66.7 member of the Minnesota Council of Nonprofits or the Minnesota 66.8 Council on Foundations, registered with the attorney general's 66.9 office, and reports an end-of-year fund balance of at least 66.10 $2,000,000; Minnesota private college that grants two- or 66.11 four-year degrees and is registered with the Higher Education 66.12 Services Office under chapter 136A; community college, state 66.13 university, or technical college, governed by the Board of 66.14 Trustees of the Minnesota State Colleges and Universities; the 66.15 Board of the Perpich Center for Arts Education under chapter 66.16 129C; or the University of Minnesota may sponsor one or more 66.17 charter schools. 66.18 (b) A nonprofit corporation subject to chapter 317A, 66.19 described in section 317A.905, and exempt from federal income 66.20 tax under section 501(c)(6) of the Internal Revenue Code of 66.21 1986, may sponsor one or more charter schools if the charter 66.22 school has operated for at least three years under a different 66.23 sponsor and if the nonprofit corporation has existed for at 66.24 least 25 years. 66.25 (c) The commissioner of education may approve up to five 66.26 charitable organizations under section 501(c)(3) of the Internal 66.27 Revenue Code of 1986 that have as their primary activity the 66.28 sponsoring of charter schools. Proposals of the charitable 66.29 organizations to the commissioner must contain: 66.30 (1) the articles, bylaws, and initial board membership; 66.31 (2) the sources of financing for its operation; 66.32 (3) the areas of specialization of its sponsorship; and 66.33 (4) other information requested by the department. 66.34 Sponsors approved under this paragraph shall report annually to 66.35 the commissioner on the types of charter schools sponsored, 66.36 their effectiveness in promoting student achievement, the 67.1 development of alternative school governance structures, and 67.2 other information requested by the department. The commissioner 67.3 may terminate its authorization for a charitable organization to 67.4 sponsor a charter school under this paragraph if the charitable 67.5 organization demonstrates persistent financial mismanagement or 67.6 repeated violations of law. 67.7 Sec. 33. Minnesota Statutes 2003 Supplement, section 67.8 124D.10, subdivision 4, is amended to read: 67.9 Subd. 4. [FORMATION OF SCHOOL.] (a) A sponsor may 67.10 authorize one or more licensed teachers under section 122A.18, 67.11 subdivision 1, to operate a charter school subject to approval 67.12 by the commissioner. A board must vote on charter school 67.13 application for sponsorship no later than 90 days after 67.14 receiving the application. After 90 days, the applicant may 67.15 apply to the commissioner. If a board elects not to sponsor a 67.16 charter school, the applicant may appeal the board's decision to 67.17 the commissioner. The commissioner may elect to sponsor the 67.18 charter school or assist the applicant in finding an eligible 67.19 sponsor. The school must be organized and operated as a 67.20 cooperative under chapter 308A or nonprofit corporation under 67.21 chapter 317A and the provisions under the applicable chapter 67.22 shall apply to the school except as provided in this section. 67.23 Notwithstanding sections 465.717 and 465.719, a school district 67.24 may create a corporation for the purpose of creating a charter 67.25 school. 67.26 (b) Before the operators may form and operate a school, the 67.27 sponsor must file an affidavit with the commissioner stating its 67.28 intent to authorize a charter school. The affidavit must state 67.29 the terms and conditions under which the sponsor would authorize 67.30 a charter school. The commissioner must approve or disapprove 67.31 the sponsor's proposed authorization within 60 days of receipt 67.32 of the affidavit. Failure to obtain commissioner approval 67.33 precludes a sponsor from authorizing the charter school that was 67.34 the subject of the affidavit. 67.35 (c) The operators authorized to organize and operate a 67.36 school, before entering into a contract or other agreement for 68.1 professional or other services, goods, or facilities, must 68.2 incorporate as a cooperative under chapter 308A or as a 68.3 nonprofit corporation under chapter 317A and must establish a 68.4 board of directors composed of at least five members until a 68.5 timely election for members of the charter school board of 68.6 directors is held according to the school's articles and 68.7 bylaws. A charter school board of directors must be composed of 68.8 at least five members. Any staff members who are employed at 68.9 the school, including teachers providing instruction under a 68.10 contract with a cooperative, and all parents of children 68.11 enrolled in the school may participate in the election for 68.12 members of the school's board of directors. Licensed teachers 68.13 employed at the school, including teachers providing instruction 68.14 under a contract with a cooperative,mustmay be a majority of 68.15 the members of the board of directorsbefore the school68.16completes its third year of operation, unless the commissioner68.17waives the requirement for a majority of licensed teachers on68.18the board. Board of director meetings must comply with chapter 68.19 13D. 68.20 (d) The granting or renewal of a charter by a sponsoring 68.21 entity must not be conditioned upon the bargaining unit status 68.22 of the employees of the school. 68.23 (e) A sponsor may authorize the operators of a charter 68.24 school to expand the operation of the charter school to 68.25 additional sites or to add additional grades at the school 68.26 beyond those described in the sponsor's application as approved 68.27 by the commissioner only after submitting a supplemental 68.28 application to the commissioner in a form and manner prescribed 68.29 by the commissioner. The supplemental application must provide 68.30 evidence that: 68.31 (1) the expansion of the charter school is supported by 68.32 need and projected enrollment; 68.33 (2) the charter school is fiscally sound; 68.34 (3) the sponsor supports the expansion; and 68.35 (4) the building of the additional site meets all health 68.36 and safety requirements to be eligible for lease aid. 69.1 (f) The commissioner annually must provide timely financial 69.2 management training to newly elected members of a charter school 69.3 board of directors and ongoing training to other members of a 69.4 charter school board of directors. Training must address ways 69.5 to: 69.6 (1) proactively assess opportunities for a charter school 69.7 to maximize all available revenue sources; 69.8 (2) establish and maintain complete, auditable records for 69.9 the charter school; 69.10 (3) establish proper filing techniques; 69.11 (4) document formal actions of the charter school, 69.12 including meetings of the charter school board of directors; 69.13 (5) properly manage and retain charter school and student 69.14 records; 69.15 (6) comply with state and federal payroll record-keeping 69.16 requirements; and 69.17 (7) address other similar factors that facilitate 69.18 establishing and maintaining complete records on the charter 69.19 school's operations. 69.20 Sec. 34. Minnesota Statutes 2003 Supplement, section 69.21 124D.10, subdivision 8, is amended to read: 69.22 Subd. 8. [STATE AND LOCAL REQUIREMENTS.] (a) A charter 69.23 school shall meet all applicable state and local health and 69.24 safety requirements. 69.25 (b) A school sponsored by a school board may be located in 69.26 any district, unless the school board of the district of the 69.27 proposed location disapproves by written resolution. 69.28 (c) A charter school must be nonsectarian in its programs, 69.29 admission policies, employment practices, and all other 69.30 operations. A sponsor may not authorize a charter school or 69.31 program that is affiliated with a nonpublic sectarian school or 69.32 a religious institution. 69.33 (d) Charter schools must not be used as a method of 69.34 providing education or generating revenue for students who are 69.35 being home-schooled. 69.36 (e) The primary focus of a charter school must be to 70.1 provide a comprehensive program of instruction for at least one 70.2 grade or age group from five through 18 years of age. 70.3 Instruction may be provided to people younger than five years 70.4 and older than 18 years of age. 70.5 (f) A charter school may not charge tuition. 70.6 (g) A charter school is subject to and must comply with 70.7 chapter 363A and section 121A.04. 70.8 (h) A charter school is subject to and must comply with the 70.9 Pupil Fair Dismissal Act, sections 121A.40 to 121A.56, and the 70.10 Minnesota Public School Fee Law, sections 123B.34 to 123B.39. 70.11 (i) A charter school is subject to the same financial 70.12 audits, audit procedures, and audit requirements as a district. 70.13 Audits must be conducted in compliance with generally accepted 70.14 governmental auditing standards, the Federal Single Audit Act, 70.15 if applicable, and section 6.65. A charter school is subject to 70.16 and must comply with sections 15.054; 118A.01; 118A.02; 118A.03; 70.17 118A.04; 118A.05; 118A.06; 123B.52, subdivision 5; 471.38; 70.18 471.391; 471.392; 471.425; 471.87; 471.88, subdivisions 1, 2, 3, 70.19 4, 5, 6, 12, 13, and 15; 471.881; and 471.89. The audit must 70.20 comply with the requirements of sections 123B.75 to 123B.83, 70.21 except to the extent deviations are necessary because of the 70.22 program at the school. Deviations must be approved by the 70.23 commissioner. The Department of Education, state auditor, or 70.24 legislative auditor may conduct financial, program, or 70.25 compliance audits. A charter school determined to be in 70.26 statutory operating debt under sections 123B.81 to 123B.83 must 70.27 submit a plan under section 123B.81, subdivision 4. 70.28 (j) A charter school is a district for the purposes of tort 70.29 liability under chapter 466. 70.30 (k) A charter school must comply with sections 13.32; 70.31 120A.22, subdivision 7; 121A.75; and 260B.171, subdivisions 3 70.32 and 5. 70.33 (l) A charter school is subject to the Pledge of Allegiance 70.34 requirement under section 121A.11, subdivision 3. 70.35 (m) A charter school is subject to sections 123B.36, 70.36 subdivision 1, clause (10), and 123B.49, subdivision 4, 71.1 paragraph (a), when its students participate in extracurricular 71.2 activities in their resident district. 71.3 [EFFECTIVE DATE.] This section is effective for the 71.4 2004-2005 school year and later. 71.5 Sec. 35. Minnesota Statutes 2003 Supplement, section 71.6 124D.11, subdivision 9, is amended to read: 71.7 Subd. 9. [PAYMENT OF AIDS TO CHARTER SCHOOLS.] (a) 71.8 Notwithstanding section 127A.45, subdivision 3, aid payments for 71.9 the current fiscal year to a charter school not in its first 71.10 year of operation shall be of an equal amount on each of the 23 71.11 payment dates. A charter school in its first year of operation 71.12 shall receive, on its first payment date, ten percent of its 71.13 cumulative amount guaranteed for the year and 22 payments of an 71.14 equal amount thereafter the sum of which shall be 90 percent of 71.15 the cumulative amount guaranteed. 71.16 (b) Notwithstanding paragraph (a), for a charter school 71.17 ceasing operation prior to the end of a school year, 80 percent 71.18 of the amount due for the school year may be paid to the school 71.19 after audit of prior fiscal year and current fiscal year pupil 71.20 counts. 71.21 (c) Notwithstanding section 127A.45, subdivision 3, and 71.22 paragraph (a), 80 percent of the start-up cost aid under 71.23 subdivision 8 shall be paid within 45 days after the first day 71.24 of student attendance for that school year. 71.25 (d) In order to receive state aid payments under this 71.26 subdivision, a charter school in its first three years of 71.27 operation must submit a school calendar in the form and manner 71.28 requested by the department and a quarterly report to the 71.29 Department of Education. The report must list each student by 71.30 grade, show the student's start and end dates, if any, with the 71.31 charter school, and for any student participating in a learning 71.32 year program, the report must list the hours and times of 71.33 learning year activities. The report must be submitted not more 71.34 than two weeks after the end of the calendar quarter to the 71.35 department. The department must develop a Web-based reporting 71.36 form for charter schools to use when submitting enrollment 72.1 reports. A charter school in its fourth and subsequent year of 72.2 operation must submit a school calendar and enrollment 72.3 information to the department in the form and manner requested 72.4 by the department. 72.5 Sec. 36. Minnesota Statutes 2003 Supplement, section 72.6 124D.385, subdivision 2, is amended to read: 72.7 Subd. 2. [MEMBERSHIP.] (a) The commission consists of 72.81826 voting members. Voting members shall include the 72.9 commissioner of education, a representative of the Children's72.10Cabinet elected by the members of the Children's Cabinet, and72.11the executive director of the Higher Education Services Office. 72.12 (b) The governor shall appoint15nine additional voting 72.13 members. Eight of the voting members appointed by the governor72.14shallthat include a representative ofpublic or nonprofit72.15 organizations experienced in youthemploymenteducation 72.16 development and training, organizations promoting adult 72.17 service or service learning and volunteerism, community-based 72.18 service agencies or organizations, local public or private 72.19 sector labor unions, local governments, business, a national 72.20 service program,andIndian tribes, and an individual between 72.21 the ages of 16 and 25 who is a participant or supervisor in a 72.22 program. The remainingseven16 voting members appointed by the 72.23 governor shall includean individualindividuals with expertise 72.24 in theeducational, training, and development needs of youth,72.25particularly disadvantaged youth; a youth or young adult who is72.26a participant in a higher education-based service-learning72.27program; a disabled individual representing persons with72.28disabilities; a youth who is out-of-school or disadvantaged; an72.29educator of primary or secondary students; an educator from a72.30higher education institution; and an individual between the ages72.31of 16 and 25 who is a participant or supervisor in a youth72.32service programmanagement and operations of a nonprofit 72.33 organization, including individuals with expertise in public 72.34 relations, finance, and development. 72.35 (c) The governor shall appoint up to five ex officio 72.36 nonvoting members fromamong the following agencies or73.1organizations: the Departments of Economic Security, Natural73.2Resources, Human Services, Health, Corrections, Agriculture,73.3Public Safety, Finance, and Labor and Industry, the Housing73.4Finance Agency, and Minnesota Technology, Incappropriate state 73.5 agencies. A representative of the Corporation for National and 73.6 Community Service shall also serve as an ex officio nonvoting 73.7 member. 73.8 (d) Voting and ex officio nonvoting members may appoint 73.9 designees to act on their behalf. The number of voting members 73.10 who are state employees shall not exceed 25 percent. 73.11 (e) The governor shall ensure that, to the extent possible, 73.12 the membership of the commission is balanced according to 73.13 geography, race, ethnicity, age, and gender. The speaker of the 73.14 house and the majority leader of the senate shall each appoint 73.15 two legislators to be nonvoting members of the commission. 73.16 Sec. 37. Minnesota Statutes 2003 Supplement, section 73.17 124D.42, subdivision 6, is amended to read: 73.18 Subd. 6. [PROGRAM TRAINING.](a)The commission must, 73.19 within available resources, ensure an opportunity for each73.20participant to have three weeks of training in a residential73.21setting. If offered, each training session must: 73.22 (1) orient eachparticipantgrantee organization in the 73.23 nature, philosophy, and purpose of the program; 73.24 (2) build an ethic of community service through general 73.25 community service training; and 73.26 (3) provide additional training as it determines necessary, 73.27 which may include training in evaluating early literacy skills 73.28 and teaching reading to preschool children through the St. Croix 73.29 River Education District under Laws 2001, First Special Session 73.30 chapter 6, article 2, section 70, to assist local Head Start 73.31 organizations in establishing and evaluating Head Start programs 73.32 for developing children's early literacy skills. 73.33(b) Each grantee organization shall also train participants73.34in skills relevant to the community service opportunity.73.35 Sec. 38. Minnesota Statutes 2002, section 124D.59, as 73.36 amended by Laws 2003, First Special Session chapter 9, article 74.1 1, section 13, is amended to read: 74.2 124D.59 [DEFINITIONS.] 74.3 Subdivision 1. [GENERALLY.] For purposes of sections 74.4 124D.58 to 124D.65, the terms defined in this section shall have 74.5 the meanings given them. 74.6 Subd. 1a. [PRIMARY LANGUAGE.] "Primary language" means a 74.7 language other than English which is the language normally used 74.8 by the child or the language which is spoken in the child's home 74.9 environment. A pupil's primary language as declared by a parent 74.10 or guardian shall be deemed to be a language other than English 74.11 if: 74.12 (1) the pupil first spoke a language other than English; 74.13 (2) the primary language spoken in the home of the pupil is 74.14 not English; or 74.15 (3) the language most often spoken by the pupil is not 74.16 English. 74.17 The primary language of each student, regardless of 74.18 proficiency status, must be determined with a home language 74.19 questionnaire the first time that student enrolls in the 74.20 district. 74.21 Subd. 1b. [LANGUAGE MINORITY STUDENT.] "Language minority 74.22 student" means a pupil in kindergarten through grade 12 who has 74.23 a primary language other than English. 74.24 Subd. 2. [PUPIL OF LIMITEDENGLISHPROFICIENCYLANGUAGE 74.25 LEARNER.] (a) "Pupil of limitedEnglishproficiencylanguage 74.26 learner" means a pupilin kindergarten through grade 12who 74.27 meets the following requirements: 74.28 (1) the pupil, as declared by a parent or guardian first74.29learned a language other than English, comes from a home where74.30the language usually spoken is other than English, or usually74.31speaks a language other than Englishis a language minority 74.32 student as defined in subdivision 1b; and 74.33 (2) the pupil is determined by developmentally appropriate 74.34 measures, which might include observations, teacher judgment, 74.35 parent recommendations, or developmentally appropriate 74.36 assessment instruments, to lack the necessary English skills to 75.1 participate fully in classes taught in English. 75.2 (b) Notwithstanding paragraph (a), a pupil in grades 4 75.3 through 12 who was enrolled in a Minnesota public school on the 75.4 dates during the previous school year when a commissioner 75.5 provided assessment that measures the pupil's emerging academic 75.6 English was administered, shall not be counted asa pupil of75.7limitedan Englishproficiencylanguage learner in calculating 75.8limitedEnglishproficiencylanguage learner pupil units under 75.9 section 126C.05, subdivision 17, and shall not generate 75.10 statelimitedEnglishproficiencylanguage learner aid under 75.11 section 124D.65, subdivision 5, unless the pupil scored below 75.12 the state cutoff score on an assessment measuring emerging 75.13 academic English provided by the commissioner during the 75.14 previous school year. 75.15 (c) Notwithstanding paragraphs (a) and (b), a pupil in 75.16 kindergarten through grade 12 shall not be counted asa pupil of75.17limitedan Englishproficiencylanguage learner in calculating 75.18limitedEnglishproficiencylanguage learner pupil units under 75.19 section 126C.05, subdivision 17, and shall not generate 75.20 statelimitedEnglishproficiencylanguage learner aid under 75.21 section 124D.65, subdivision 5, if: 75.22 (1) the pupil is not enrolled during the current fiscal 75.23 year in an educational program forpupils of limitedEnglish 75.24proficiencylanguage learners in accordance with sections 75.25 124D.58 to 124D.64; or 75.26 (2) the pupil has generated five or more years of average 75.27 daily membership in Minnesota public schools since July 1, 1996. 75.28 Subd. 2a. [TRANSITIONAL LANGUAGE LEARNER.] "Transitional 75.29 language learner" means a pupil who meets the following 75.30 requirements: 75.31 (1) the pupil is a language minority student; 75.32 (2) the pupil has received scores indicating attainment of 75.33 English proficiency on a test of English language acquisition 75.34 approved by the commissioner; and 75.35 (3) the pupil has not scored in the proficient level on the 75.36 state reading assessment aligned with the state academic 76.1 standards three times, or for as many times as the state reading 76.2 assessment is given during the pupil's last three academic years 76.3 in a Minnesota school. 76.4 Subd. 2b. [FLUENT LANGUAGE LEARNER.] "Fluent language 76.5 learner" means a pupil in kindergarten through grade 12 who 76.6 meets the following requirements: 76.7 (1) the pupil is a language minority student; 76.8 (2) the pupil has received scores indicating attainment of 76.9 English proficiency on a test of English language acquisition 76.10 approved by the commissioner; and 76.11 (3) the pupil has scored in the proficient level on the 76.12 state reading assessment aligned with the state academic 76.13 standards three times, or for as many times as the state reading 76.14 assessment is given during the pupil's last three academic years 76.15 in a Minnesota school. 76.16 Subd. 3. [ESSENTIAL INSTRUCTIONAL PERSONNEL.] "Essential 76.17 instructional personnel" means the following: 76.18 (1) a teacher licensed by the state Board of Teaching to 76.19 teach bilingual education or English as a second language; and 76.20 (2) a teacher with an exemption from a teaching license 76.21 requirement pursuant to section 124D.62 who is employed in a 76.22 school district's English as a second language or bilingual 76.23 education program;. 76.24(3) any teacher as defined in section 122A.15 who holds a76.25valid license from the state Board of Teaching, if the district76.26assures the department that the teacher will obtain the76.27preservice and in-service training the department considers76.28necessary to enable the teacher to provide appropriate service76.29to pupils of limited English proficiency.76.30 Subd. 4. [ENGLISH AS A SECOND LANGUAGE PROGRAM.] "English 76.31 as a second language program" means a program for the 76.32 instruction ofpupils of limitedEnglishproficiencylanguage 76.33 learners in the following English language skills: reading, 76.34 writing, listening and speaking. 76.35 Subd. 5. [BILINGUAL EDUCATION PROGRAM.] "Bilingual 76.36 education program" means an educational program in which 77.1 instruction is given in both English and the primary language of 77.2 thepupil of limitedEnglishproficiencylanguage learner to the 77.3 extent necessary to allow the pupil to progress effectively 77.4 through the educational system and to attain the basic skills of 77.5 reading, writing, listening, and speaking in the English 77.6 language so that the pupil will be able to perform ordinary 77.7 classwork successfully in English. 77.8Subd. 6. [PRIMARY LANGUAGE.] "Primary language" means a77.9language other than English which is the language normally used77.10by the child or the language which is spoken in the child's home77.11environment.77.12 Subd. 7. [PARENT.] "Parent" includes a child's legal 77.13 guardian. 77.14 Subd. 8. [EDUCATIONAL PROGRAM FORPUPILS OF LIMITED77.15 ENGLISHPROFICIENCYLANGUAGE LEARNERS.] "Educational program for 77.16pupils of limitedEnglishproficiencylanguage learners" means 77.17 an English as a second language program, bilingual education 77.18 program, or both an English as a second language and a bilingual 77.19 education program. 77.20 Sec. 39. Minnesota Statutes 2002, section 124D.61, is 77.21 amended to read: 77.22 124D.61 [GENERAL REQUIREMENTS FOR PROGRAMS.] 77.23 (a) A districtwhich receives aid pursuant to section77.24124D.65that enrolls one or more English language learners must 77.25 comply with thefollowingprogram requirements:under paragraphs 77.26 (b) and (c). 77.27 (b) A district must implement an educational program for 77.28 English language learners if one or more English language 77.29 learners are enrolled in the district. 77.30 (c) An educational program for English language learners 77.31 must meet the following requirements: 77.32 (1) entrance and exit criteria must be documented by the 77.33 district, applied uniformly to English language learners, and 77.34 made available to parents and other stakeholders upon request; 77.35 (2) the curriculum of the educational program for English 77.36 language learners must be coordinated with the mainstream 78.1 curriculum in which the English language learners are involved 78.2 and must be consistent with standards set forth by the 78.3 commissioner; 78.4 (3) the amount of service offered English language learners 78.5 through an educational program specifically for English language 78.6 learners must be designed to meet varying student needs across 78.7 English proficiency levels; 78.8(1)(4) to the extent possible, the district must avoid 78.9 isolatingchildren of limited English proficiencyEnglish 78.10 language learners for a substantial part of the school day; and 78.11(2)(5) in predominantly nonverbal subjects, such as art, 78.12 music, and physical education,pupils of limited English78.13proficiencyEnglish language learners shall be permitted to 78.14 participate fully and on an equal basis with their 78.15 contemporaries in public school classes provided for these 78.16 subjects. To the extent possible, the district must assure to 78.17 pupils enrolled ina program for limited English proficient78.18studentsan educational program for English language learners an 78.19 equal and meaningful opportunity to participate fully with other 78.20 pupils in all extracurricular activities. 78.21 Sec. 40. Minnesota Statutes 2002, section 125A.22, is 78.22 amended to read: 78.23 125A.22 [COMMUNITY TRANSITION INTERAGENCY COMMITTEE.] 78.24 A district, group of districts, or special education 78.25 cooperative, in cooperation with the county or counties in which 78.26 the district or cooperative is located, must establish a 78.27 community transition interagency committee for youth with 78.28 disabilities, beginning at grade 9 or age equivalent, and their 78.29 families. Members of the committee must consist of 78.30 representatives from special education, vocational and regular 78.31 education, community education, postsecondary education and 78.32 training institutions, the mental health community, adults with 78.33 disabilities who have received transition services if such 78.34 persons are available, parents of youth with disabilities, local 78.35 business or industry, rehabilitation services, county social 78.36 services, health agencies, and additional public or private 79.1 adult service providers as appropriate. The committee must 79.2 elect a chair and must meet regularly. The committee must: 79.3 (1) identify current services, programs, and funding 79.4 sources provided within the community for secondary and 79.5 postsecondary aged youth with disabilities and their families; 79.6 (2) facilitate the development of multiagency teams to 79.7 address present and future transition needs of individual 79.8 students on their individual education plans; 79.9 (3) develop a community plan to include mission, goals, and 79.10 objectives, and an implementation plan to assure that transition 79.11 needs of individuals with disabilities are met; 79.12 (4) recommend changes or improvements in the community 79.13 system of transition services; 79.14 (5) exchange agency information such as appropriate data, 79.15 effectiveness studies, special projects, exemplary programs, and 79.16 creative funding of programs; and 79.17 (6) following procedures determined by the commissioner, 79.18 prepare a yearly summary assessing the progress of transition 79.19 services in the community including follow-up of individuals 79.20 with disabilities who were provided transition services to 79.21 determine postschool outcomes. The summary must be disseminated 79.22 to all adult services agencies involved in the planning and to 79.23 the commissioner by October 1 of each year. 79.24 [EFFECTIVE DATE.] This section is effective the day 79.25 following final enactment. 79.26 Sec. 41. Minnesota Statutes 2003 Supplement, section 79.27 128C.05, subdivision 1a, is amended to read: 79.28 Subd. 1a. [SUPERVISED COMPETITIVE HIGH SCHOOL DIVING.] 79.29 Notwithstanding Minnesota Rules, part 4717.3750, any pool built 79.30 before January 1, 1987, that was used for a high school diving 79.31 program during the 2000-2001 school year may be used for 79.32 supervised competitive high school divingunless a pool that79.33meets the requirements of Minnesota Rules, part 4717.3750, is79.34located within the school district. Schools and school 79.35 districts are strongly encouraged to use a pool for supervised 79.36 competitive high school diving that meets the requirements of 80.1 Minnesota Rules, part 4717.3750. A school or district using a 80.2 pool for supervised competitive high school diving that does not 80.3 meet the requirements of the rule must provide appropriate 80.4 notice to parents and participants. 80.5 [EFFECTIVE DATE.] This section is effective the day 80.6 following final enactment. 80.7 Sec. 42. Minnesota Statutes 2002, section 171.04, 80.8 subdivision 1, is amended to read: 80.9 Subdivision 1. [PERSONS NOT ELIGIBLE.] The department 80.10 shall not issue a driver's license: 80.11 (1) to any person under 18 years unless: 80.12 (i) the applicant is 16 or 17 years of age and has a 80.13 previously issued valid license from another state or country or 80.14 the applicant has, for the 12 consecutive months preceding 80.15 application, held a provisional license and during that time has 80.16 incurred (A) no conviction for a violation of section 169A.20, 80.17 169A.33, 169A.35, or sections 169A.50 to 169A.53, (B) no 80.18 conviction for a crash-related moving violation, and (C) not 80.19 more than one conviction for a moving violation that is not 80.20 crash related. "Moving violation" means a violation of a 80.21 traffic regulation but does not include a parking violation, 80.22 vehicle equipment violation, or warning citation; 80.23 (ii) the application for a license is approved by (A) 80.24 either parent when both reside in the same household as the 80.25 minor applicant or, if otherwise, then (B) the parent or spouse 80.26 of the parent having custody or, in the event there is no court 80.27 order for custody, then (C) the parent or spouse of the parent 80.28 with whom the minor is living or, if subitems (A) to (C) do not 80.29 apply, then (D) the guardian having custody of the minor or, in 80.30 the event a person under the age of 18 has no living father, 80.31 mother, or guardian, or is married or otherwise legally 80.32 emancipated, then (E) the minor's adult spouse, adult close 80.33 family member, or adult employer; provided, that the approval 80.34 required by this item contains a verification of the age of the 80.35 applicant and the identity of the parent, guardian, adult 80.36 spouse, adult close family member, or adult employer;and81.1 (iii) the applicant presents a certification by the person 81.2 who approves the application under item (ii), stating that the 81.3 applicant has driven a motor vehicle accompanied by and under 81.4 supervision of a licensed driver at least 21 years of age for at 81.5 least ten hours during the period of provisional licensure; and 81.6 (iv) the applicant presents a certificate under section 81.7 120A.23 either verifying school attendance or waiving the 81.8 attendance requirement; 81.9 (2) to any person who is 18 years of age or younger, unless 81.10 the person has applied for, been issued, and possessed the 81.11 appropriate instruction permit for a minimum of six months, and, 81.12 with respect to a person under 18 years of age, a provisional 81.13 license for a minimum of 12 months; 81.14 (3) to any person who is 19 years of age or older, unless 81.15 that person has applied for, been issued, and possessed the 81.16 appropriate instruction permit for a minimum of three months; 81.17 (4) to any person whose license has been suspended during 81.18 the period of suspension except that a suspended license may be 81.19 reinstated during the period of suspension upon the licensee 81.20 furnishing proof of financial responsibility in the same manner 81.21 as provided in the Minnesota No-Fault Automobile Insurance Act; 81.22 (5) to any person whose license has been revoked except 81.23 upon furnishing proof of financial responsibility in the same 81.24 manner as provided in the Minnesota No-Fault Automobile 81.25 Insurance Act and if otherwise qualified; 81.26 (6) to any drug-dependent person, as defined in section 81.27 254A.02, subdivision 5; 81.28 (7) to any person who has been adjudged legally incompetent 81.29 by reason of mental illness, mental deficiency, or inebriation, 81.30 and has not been restored to capacity, unless the department is 81.31 satisfied that the person is competent to operate a motor 81.32 vehicle with safety to persons or property; 81.33 (8) to any person who is required by this chapter to take a 81.34 vision, knowledge, or road examination, unless the person has 81.35 successfully passed the examination. An applicant who fails 81.36 four road tests must complete a minimum of six hours of 82.1 behind-the-wheel instruction with an approved instructor before 82.2 taking the road test again; 82.3 (9) to any person who is required under the Minnesota 82.4 No-Fault Automobile Insurance Act to deposit proof of financial 82.5 responsibility and who has not deposited the proof; 82.6 (10) to any person when the commissioner has good cause to 82.7 believe that the operation of a motor vehicle on the highways by 82.8 the person would be inimical to public safety or welfare; 82.9 (11) to any person when, in the opinion of the 82.10 commissioner, the person is afflicted with or suffering from a 82.11 physical or mental disability or disease that will affect the 82.12 person in a manner as to prevent the person from exercising 82.13 reasonable and ordinary control over a motor vehicle while 82.14 operating it upon the highways; 82.15 (12) to a person who is unable to read and understand 82.16 official signs regulating, warning, and directing traffic; 82.17 (13) to a child for whom a court has ordered denial of 82.18 driving privileges under section 260C.201, subdivision 1, or 82.19 260B.235, subdivision 5, until the period of denial is 82.20 completed; or 82.21 (14) to any person whose license has been canceled, during 82.22 the period of cancellation. 82.23 [EFFECTIVE DATE.] This section is effective September 1, 82.24 2004, and applies to all persons under age 18 who possess or 82.25 apply for a driver's instruction permit or provisional license 82.26 on or after that date. 82.27 Sec. 43. Minnesota Statutes 2002, section 171.05, 82.28 subdivision 2, is amended to read: 82.29 Subd. 2. [PERSON LESS THAN 18 YEARS OF AGE.] (a) 82.30 Notwithstanding any provision in subdivision 1 to the contrary, 82.31 the department may issue an instruction permit to an applicant 82.32 who is 15, 16, or 17 years of age and who: 82.33 (1) has completed a course of driver education in another 82.34 state, has a previously issued valid license from another state, 82.35 or is enrolled in either: 82.36 (i) a public, private, or commercial driver education 83.1 program that is approved by the commissioner of public safety 83.2 and that includes classroom and behind-the-wheel training; or 83.3 (ii) an approved behind-the-wheel driver education program 83.4 when the student is receiving full-time instruction in a home 83.5 school within the meaning of sections 120A.22 and 120A.24, the 83.6 student is working toward a home-school diploma, the student's 83.7 status as a home-school student has been certified by the 83.8 superintendent of the school district in which the student 83.9 resides, and the student is taking home-classroom driver 83.10 training with classroom materials approved by the commissioner 83.11 of public safety; 83.12 (2) has completed the classroom phase of instruction in the 83.13 driver education program; 83.14 (3) has passed a test of the applicant's eyesight; 83.15 (4) has passed a department-administered test of the 83.16 applicant's knowledge of traffic laws; 83.17 (5) has completed the required application, which must be 83.18 approved by (i) either parent when both reside in the same 83.19 household as the minor applicant or, if otherwise, then (ii) the 83.20 parent or spouse of the parent having custody or, in the event 83.21 there is no court order for custody, then (iii) the parent or 83.22 spouse of the parent with whom the minor is living or, if items 83.23 (i) to (iii) do not apply, then (iv) the guardian having custody 83.24 of the minor or, in the event a person under the age of 18 has 83.25 no living father, mother, or guardian, or is married or 83.26 otherwise legally emancipated, then (v) the applicant's adult 83.27 spouse, adult close family member, or adult employer; provided, 83.28 that the approval required by this clause contains a 83.29 verification of the age of the applicant and the identity of the 83.30 parent, guardian, adult spouse, adult close family member, or 83.31 adult employer;and83.32 (6) presents a certificate under section 120A.23 either 83.33 verifying school attendance or waiving the attendance 83.34 requirement; and 83.35 (7) has paid the fee required in section 171.06, 83.36 subdivision 2. 84.1 (b) The instruction permit is valid for one year from the 84.2 date of application and may be renewed upon payment of a fee 84.3 equal to the fee for issuance of an instruction permit under 84.4 section 171.06, subdivision 2. 84.5 [EFFECTIVE DATE.] This section is effective September 1, 84.6 2004, and applies to all persons under age 18 who possess or 84.7 apply for a driver's instruction permit on or after that date. 84.8 Sec. 44. Minnesota Statutes 2002, section 171.05, 84.9 subdivision 2b, is amended to read: 84.10 Subd. 2b. [INSTRUCTION PERMIT USE BY PERSON UNDER AGE 18.] 84.11 (a) This subdivision applies to persons who have applied for and 84.12 received an instruction permit under subdivision 2. 84.13 (b) The permit holder may, with the permit in possession, 84.14 operate a motor vehicle, but must be accompanied by and be under 84.15 the supervision of a certified driver education instructor, the 84.16 permit holder's parent or guardian, or another licensed driver 84.17 age 21 or older. The supervisor must occupy the seat beside the 84.18 permit holder. 84.19 (c) The permit holder may operate a motor vehicle only when 84.20 every occupant under the age of 18 has a seat belt or child 84.21 passenger restraint system properly fastened. A person who 84.22 violates this paragraph is subject to a fine of $25. A peace 84.23 officer may not issue a citation for a violation of this 84.24 paragraph unless the officer lawfully stopped or detained the 84.25 driver of the motor vehicle for a moving violation as defined in 84.26 section 171.04, subdivision 1. The commissioner shall not 84.27 record a violation of this paragraph on a person's driving 84.28 record. 84.29 (d) The permit holder must maintain a driving record free 84.30 of convictions for moving violations, as defined in section 84.31 171.04, subdivision 1, and free of convictions for violation of 84.32 section 169A.20, 169A.33, 169A.35, or sections 169A.50 to 84.33 169A.53. If the permit holder drives a motor vehicle in 84.34 violation of the law, the commissioner shall suspend, cancel, or 84.35 revoke the permit in accordance with the statutory section 84.36 violated. 85.1 (e) The permit holder must comply with the school 85.2 attendance requirement under section 171.056, except when the 85.3 board waives the attendance requirement under section 120A.23. 85.4 If the permit holder does not attend school as required, the 85.5 commissioner shall cancel the permit according to section 85.6 171.056. 85.7 [EFFECTIVE DATE.] This section is effective September 1, 85.8 2004, and applies to all persons under age 18 who possess or 85.9 apply for a driver's instruction permit on or after that date. 85.10 Sec. 45. Minnesota Statutes 2002, section 171.05, 85.11 subdivision 3, is amended to read: 85.12 Subd. 3. [MOTORIZED BICYCLE.] Notwithstanding any 85.13 provision in subdivision 1 to the contrary, the department, upon 85.14 application and payment of the fee prescribed in section 171.02, 85.15 subdivision 3, may issue a motorized bicycle instruction permit 85.16 to an applicant who is 15 years of ageand, who has successfully 85.17 completed the written portion of the examination prescribed by 85.18 the commissioner, and who presents a certificate under section 85.19 171.056 verifying school attendance or waiving the attendance 85.20 requirement. The holder of this instruction permit who has the 85.21 permit in possession may operate a motorized bicycle within one 85.22 mile of the holder's residence for the purpose of practicing to 85.23 take the operator portion of the examination prescribed by the 85.24 commissioner. 85.25 [EFFECTIVE DATE.] This section is effective September 1, 85.26 2004, and applies to all persons under age 18 who possess or 85.27 apply for a motorized bicycle instruction permit on or after 85.28 that date. 85.29 Sec. 46. [171.056] [SCHOOL ATTENDANCE REQUIRED FOR 85.30 DRIVER'S INSTRUCTION PERMIT, MOTORIZED BICYCLE PERMIT, AND 85.31 PROVISIONAL LICENSE.] 85.32 Subdivision 1. [DEFINITIONS.] (a) For the purposes of this 85.33 section, the terms defined in this subdivision have the meanings 85.34 given them. 85.35 (b) "Administrator" means a school principal or an 85.36 equivalent administrator of a state-approved alternative program 86.1 or a charter school. 86.2 (c) "Board" means a school board of a school district, a 86.3 board of a state-approved alternative program, or a charter 86.4 school board of directors. 86.5 (d) "School" means a district public school, a 86.6 state-approved alternative program, or a charter school. 86.7 (e) "Superintendent" means a district superintendent or an 86.8 equivalent administrator of a state-approved alternative program 86.9 or a charter school. 86.10 Subd. 2. [ISSUING OR RENEWING A DRIVER'S INSTRUCTION 86.11 PERMIT, MOTORIZED BICYCLE PERMIT, OR PROVISIONAL LICENSE.] (a) 86.12 Notwithstanding any law to the contrary, except when a board 86.13 waives the attendance requirement under section 120A.23, a 86.14 person under age 18 seeking a new driver's instruction permit, 86.15 motorized bicycle permit, or provisional license or seeking to 86.16 renew a permit must attend school. The person satisfies the 86.17 school attendance requirement by: 86.18 (1) receiving a high school diploma or general education 86.19 development certificate (GED); 86.20 (2) withdrawing from school under section 120A.22, 86.21 subdivision 8; or 86.22 (3) enrolling and attending school, including a charter 86.23 school, in good standing under section 120A.22, subdivision 4. 86.24 (b) A person under age 18 who applies for a motorized 86.25 bicycle permit, instruction permit, or provisional license must 86.26 submit the necessary information to the department certifying 86.27 that the person meets the requirement for obtaining or keeping a 86.28 permit or license under paragraph (a). 86.29 (c) The administrator at the person's school must certify 86.30 that the person attended school for the current and preceding 86.31 school year, to the extent records are available. The 86.32 department shall make a form available for the administrator to 86.33 complete that includes the person's name, date of birth, and 86.34 address. A parent or guardian must give the administrator prior 86.35 written consent to release to the department any nonpublic data 86.36 about the student and any data not designated as directory 87.1 information. The school must notify parents and guardians in 87.2 the school's student attendance policy that their written 87.3 consent is needed to transfer such data about the student to the 87.4 department. 87.5 Subd. 3. [CANCELING A PERMIT OR LICENSE.] (a) 87.6 Notwithstanding any law to the contrary, the department shall 87.7 cancel the motorized bicycle permit, instruction permit, or 87.8 provisional license of a person under age 18 when the 87.9 administrator notifies the department that the person: 87.10 (1) is truant under section 260C.007, subdivision 19; 87.11 (2) has not withdrawn under section 120A.22, subdivision 8; 87.12 and 87.13 (3) has not received a high school diploma or general 87.14 education development certificate (GED). 87.15 The department shall notify the person that the person's 87.16 permit or license is canceled under section 171.14 beginning 87.17 five days after the notice is issued. 87.18 The school must inform the person and the person's parent 87.19 or legal guardian by first class mail or other reasonable means 87.20 that the person's motorized bicycle permit, instruction permit, 87.21 or provisional license may be canceled and that the person may 87.22 request a hardship waiver from the school under subdivision 4 to 87.23 keep the license or permit. 87.24 The school must obtain the prior written consent of the 87.25 parent or guardian to release the data to the department. 87.26 (b) Notwithstanding section 171.14, or other law to the 87.27 contrary, the department shall cancel the permit or license of a 87.28 person under age 18 until one of the following conditions is 87.29 first satisfied: 87.30 (1) the person is 18 years old; or 87.31 (2) an administrator notifies the department to reinstate 87.32 the person's permit or license because: 87.33 (i) the person attended school for 120 days after the date 87.34 the department issued its cancellation notice; or 87.35 (ii) the administrator, at the board's direction, dismisses 87.36 the person's expulsion under the Pupil Fair Dismissal Act, 88.1 sections 121A.40 to 121A.56. 88.2 (c) When a person satisfies a requirement for reinstating a 88.3 license or permit under paragraph (b), a school shall send an 88.4 electronic notice to the department to rescind the cancellation 88.5 of the person's license or permit after obtaining the parent's 88.6 written consent to release to the department nonpublic data 88.7 about the student and data not designated as directory 88.8 information. 88.9 Subd. 4. [HARDSHIP WAIVER.] A person whose permit or 88.10 provisional license may be canceled under this section may ask 88.11 the school for a hardship waiver hearing. The superintendent 88.12 must conduct the hearing within seven days after receiving the 88.13 request. The superintendent must appoint an advisory committee 88.14 to hear evidence and recommend in writing whether or not to 88.15 cancel the person's permit or provisional license. The advisory 88.16 committee must, within two days of holding the hearing, submit 88.17 its recommendation, evidence, and other related documents to the 88.18 superintendent. An administrator, the person whose permit or 88.19 license may be canceled, and the person's parent or guardian may 88.20 present evidence. The superintendent must electronically notify 88.21 the department of the decision within seven days after the 88.22 hearing is held. The school must obtain the prior written 88.23 consent of the parent or guardian to release the data to the 88.24 department. The superintendent's decision is final and cannot 88.25 be appealed. 88.26 [EFFECTIVE DATE.] This section is effective September 1, 88.27 2004, and applies to all persons under age 18 years who possess 88.28 or apply for a motorized bicycle permit, driver's instruction 88.29 permit, or provisional license on or after that date. 88.30 Sec. 47. Minnesota Statutes 2002, section 171.19, is 88.31 amended to read: 88.32 171.19 [PETITION FOR LICENSE REINSTATEMENT.] 88.33 Any person whose driver's license has been refused, 88.34 revoked, suspended, canceled, or disqualified by the 88.35 commissioner, except where the license is revoked or 88.36 disqualified under section 169A.52 or 171.186 or canceled under 89.1 section 171.056, may file a petition for a hearing in the matter 89.2 in the district court in the county wherein such person shall 89.3 reside and, in the case of a nonresident, in the district court 89.4 in any county, and such court is hereby vested with 89.5 jurisdiction, and it shall be its duty, to set the matter for 89.6 hearing upon 15 days' written notice to the commissioner, and 89.7 thereupon to take testimony and examine into the facts of the 89.8 case to determine whether the petitioner is entitled to a 89.9 license or is subject to revocation, suspension, cancellation, 89.10 disqualification, or refusal of license, and shall render 89.11 judgment accordingly. The petition for hearing must either be 89.12 filed within 180 days of the effective date of the order of 89.13 revocation, suspension, cancellation, disqualification, or 89.14 refusal to license or be filed before expiration of the 89.15 withdrawal period, whichever occurs first. The petition shall 89.16 be heard by the court without a jury and may be heard in or out 89.17 of term. The commissioner may appear in person, or by agents or 89.18 representatives, and may present evidence upon the hearing by 89.19 affidavit personally, by agents, or by representatives. The 89.20 petitioner may present evidence by affidavit, except that the 89.21 petitioner must be present in person at such hearing for the 89.22 purpose of cross-examination. In the event the department shall 89.23 be sustained in these proceedings, the petitioner shall have no 89.24 further right to make further petition to any court for the 89.25 purpose of obtaining a driver's license until after the 89.26 expiration of one year after the date of such hearing. 89.27 [EFFECTIVE DATE.] This section is effective September 1, 89.28 2004. 89.29 Sec. 48. Minnesota Statutes 2002, section 260A.03, is 89.30 amended to read: 89.31 260A.03 [NOTICE TO PARENT OR GUARDIAN WHEN CHILD IS A 89.32 CONTINUING TRUANT.] 89.33 Upon a child's initial classification as a continuing 89.34 truant, the school attendance officer or other designated school 89.35 official shall notify the child's parent or legal guardian, by 89.36 first-class mail or other reasonable means, of the following: 90.1 (1) that the child is truant; 90.2 (2) that the parent or guardian should notify the school if 90.3 there is a valid excuse for the child's absences; 90.4 (3) that the parent or guardian is obligated to compel the 90.5 attendance of the child at school pursuant to section 120A.22 90.6 and parents or guardians who fail to meet this obligation may be 90.7 subject to prosecution under section 120A.34; 90.8 (4) that this notification serves as the notification 90.9 required by section 120A.34; 90.10 (5) that alternative educational programs and services may 90.11 be available in the district; 90.12 (6) that the parent or guardian has the right to meet with 90.13 appropriate school personnel to discuss solutions to the child's 90.14 truancy; 90.15 (7) that the school, after obtaining the informed consent 90.16 of the child's parent or guardian to release the data to the 90.17 Department of Public Safety, must notify the department to 90.18 cancel the child's license or permit under section 171.056 when 90.19 the child is truant under section 260C.007, subdivision 19, 90.20 unless the school waived the attendance requirement under 90.21 section 120A.23; 90.22 (8) that if the child continues to be truant, the parent 90.23 and child may be subject to juvenile court proceedings under 90.24 chapter 260C; 90.25(8)(9) that if the child is subject to juvenile court 90.26 proceedings, the child may be subject to suspension, 90.27 restriction, or delay of the child's driving privilege pursuant 90.28 to section 260C.201; and 90.29(9)(10) that it is recommended that the parent or guardian 90.30 accompany the child to school and attend classes with the child 90.31 for one day. 90.32 [EFFECTIVE DATE.] This section is effective September 1, 90.33 2004. 90.34 Sec. 49. Laws 2003, First Special Session chapter 9, 90.35 article 2, section 55, subdivision 5, is amended to read: 90.36 Subd. 5. [INTEGRATION AID.] For integration aid under 91.1 Minnesota Statutes, section 124D.86, subdivision 5: 91.2$56,869,000$55,911,000 ..... 2004 91.3$56,092,000$55,899,000 ..... 2005 91.4 The 2004 appropriation includes $8,428,000 for 2003 and 91.5$48,441,000$47,483,000 for 2004. 91.6 The 2005 appropriation includes$12,110,000$11,870,000 for 91.7 2004 and$43,982,000$44,029,000 for 2005. 91.8 Sec. 50. Laws 2003, First Special Session chapter 9, 91.9 article 2, section 55, subdivision 15, is amended to read: 91.10 Subd. 15. [BEST PRACTICES SEMINARS.] For best practices 91.11 seminars and other professional development capacity building 91.12 activities that assure proficiency in teaching and 91.13 implementation of graduation rule standards: 91.14 $1,000,000 ..... 2004 91.15$1,000,000$250,000 ..... 2005 91.16 $250,000 per year is for a grant to A Chance to Grow/New 91.17 Visions for the Minnesota learning resource center's 91.18 comprehensive training program for education professionals 91.19 charged with helping children acquire basic reading and math 91.20 skills. 91.21 The base budget for this program is $200,000 for fiscal 91.22 year 2006 and $100,000 for fiscal year 2007. 91.23 Sec. 51. Laws 2003, First Special Session chapter 9, 91.24 article 2, section 55, subdivision 16, is amended to read: 91.25 Subd. 16. [ALTERNATIVE TEACHER COMPENSATION.] For 91.26 alternative teacher compensation established under Minnesota 91.27 Statutes, sections 122A.413 to 122A.415: 91.28 $3,700,000 ..... 2004 91.29 $3,700,000 ..... 2005 91.30 If the appropriations under this subdivision are 91.31 insufficient to fund all program participants, a participant may 91.32 receive less than the maximum per pupil amount available under 91.33 Minnesota Statutes, section 122A.415, subdivision 1. A 91.34 qualifying district or site receiving alternative teacher 91.35 compensation funding under this subdivision may use the funding 91.36 it receives to leverage additional funds from a national program 92.1 for enhancing teacher professionalism. 92.2 Any balance in the first year does not cancel but is 92.3 available in the second year. 92.4 [EFFECTIVE DATE.] This section is effective the day 92.5 following final enactment. 92.6 Sec. 52. Laws 2003, First Special Session chapter 9, 92.7 article 2, section 55, subdivision 17, is amended to read: 92.8 Subd. 17. [EXAMINATION FEES; TEACHER TRAINING AND SUPPORT 92.9 PROGRAMS.] (a) For students' advanced placement and 92.10 international baccalaureate examination fees under Minnesota 92.11 Statutes, section 120B.13, subdivision 3, and the training and 92.12 related costs for teachers and other interested educators under 92.13 Minnesota Statutes, section 120B.13, subdivision 1: 92.14 $ 778,000 ..... 2004 92.15 $ 778,000 ..... 2005 92.16 (b) The advanced placement program shall receive 75 percent 92.17 of the appropriation each year and the international 92.18 baccalaureate program shall receive 25 percent of the 92.19 appropriation each year. The department, in consultation with 92.20 representatives of the advanced placement and international 92.21 baccalaureate programs selected by the advanced placement 92.22 advisory council and IBMN, respectively, shall determine the 92.23 amounts of the expenditures each year for examination fees and 92.24 training and support programs for each program. 92.25 (c)Notwithstanding Minnesota Statutes, section 120B.13,92.26subdivision 1, $375,000 each year is for teachers to attend92.27subject matter summer training programs and follow-up support92.28workshops approved by the advanced placement or international92.29baccalaureate programs. The amount of the subsidy for each92.30teacher attending an advanced placement or international92.31baccalaureate summer training program or workshop shall be the92.32same. The commissioner shall determine the payment process and92.33the amount of the subsidy.92.34(d)The commissioner shall pay all examination fees for all 92.35 students of low-income families under Minnesota Statutes, 92.36 section 120B.13, subdivision 3, and to the extent of available 93.1 appropriations shall also pay examination fees for students 93.2 sitting for an advanced placement examination, international 93.3 baccalaureate examination, or both. 93.4 Any balance in the first year does not cancel but is 93.5 available in the second year. 93.6 [EFFECTIVE DATE.] This section is effective the day 93.7 following final enactment for revenue for fiscal year 2004. 93.8 Sec. 53. Laws 2003, First Special Session chapter 9, 93.9 article 2, section 55, subdivision 19, is amended to read: 93.10 Subd. 19. [YOUTH WORKS PROGRAM.] For funding youth works 93.11 programs under Minnesota Statutes, sections 124D.37 to 124D.45: 93.12 $900,000 ..... 2004 93.13 $900,000 ..... 2005 93.14 (a) $150,000 per year is for training in evaluating early 93.15 literacy skills and teaching reading to preschool children under 93.16 Minnesota Statutes, section 124D.42, subdivision 6, paragraph 93.17 (a), clause (3). 93.18 (b) A grantee organization may provide health and child 93.19 care coverage to the dependents of each participant enrolled in 93.20 a full-time youth works program to the extent such coverage is 93.21 not otherwise available. 2004 or fiscal year 2005 shall be no 93.22 less than its fiscal year 2003 allocation. 93.23 (c) The budget base for this program is $900,000 in fiscal 93.24 year 2006 and $500,000 in fiscal year 2007. 93.25 Sec. 54. Laws 2003, First Special Session chapter 9, 93.26 article 2, section 55, subdivision 21, as amended by Laws 2003, 93.27 First Special Session chapter 23, section 16, is amended to read: 93.28 Subd. 21. [ON-LINE LEARNING.] For on-line learning aid 93.29 under Minnesota Statutes, section 124D.095: 93.30 $1,000,000 ..... 2004 93.31$1,250,000$2,750,000 ..... 2005 93.32 Sec. 55. [RULEMAKING AUTHORITY.] 93.33 Subdivision 1. [SUPPLEMENTAL EDUCATION SERVICE PROVIDERS.] 93.34 The commissioner of education shall adopt rules under Minnesota 93.35 Statutes, chapter 14, making permanent the supplemental 93.36 education service provider exempt rules authorized under Laws 94.1 2003, chapter 129, article 2, section 3. 94.2 Subd. 2. [STATEWIDE TESTING.] The commissioner of 94.3 education shall adopt rules under Minnesota Statutes, chapter 94.4 14, for the administration of statewide accountability tests 94.5 under Minnesota Statutes, section 120B.30, to ensure security 94.6 and integrity of the tests and test results. 94.7 [EFFECTIVE DATE.] This section is effective the day 94.8 following final enactment. 94.9 Sec. 56. [SCHOOL INNOVATION AND COOPERATIVE PLANNING 94.10 GRANTS.] 94.11 Subdivision 1. [GRANT PROGRAMS.] The commissioner of 94.12 education shall award planning grants to service cooperatives, 94.13 two or more school districts cooperating for a particular 94.14 purpose, or cooperating charter schools that work together to 94.15 improve the delivery and cost-effectiveness of instructional and 94.16 noninstructional programs and services and increase funds 94.17 available for instruction-related expenditures. Service 94.18 cooperatives, cooperating districts, or cooperating charter 94.19 schools may coordinate or merge any noninstructional program or 94.20 service of a participating district or charter school. The 94.21 service cooperatives, cooperating districts, or cooperating 94.22 charter schools may use the grant to determine: 94.23 (1) the district or charter school that is the primary 94.24 service provider; 94.25 (2) the districts or charter schools that provide 94.26 supplemental support; 94.27 (3) collaborative purchasing arrangements for goods and 94.28 services; and 94.29 (4) how the districts or charter schools may coordinate or 94.30 merge school functions such as payroll, human resources, food 94.31 services, facility maintenance, community education programming, 94.32 and student transportation. 94.33 Service cooperatives, cooperating districts, or cooperating 94.34 charter schools must apply for a grant in a form and manner 94.35 determined by the commissioner. 94.36 Subd. 2. [REPORT.] The service cooperatives, cooperating 95.1 districts, and charter schools must report by August 1 to the 95.2 commissioner on coordinating noninstructional programs and 95.3 services and any estimates of cost savings realized by providing 95.4 coordinated or merged programs and services during the preceding 95.5 school year. 95.6 Sec. 57. [PILOT PROJECT RECOGNIZING TEACHERS' CRITICAL 95.7 ROLE IN IMPROVING STUDENT ACHIEVEMENT AND SCHOOL PERFORMANCE.] 95.8 Subdivision 1. [PROJECT GOAL DEFINED; APPLICATION PROCESS 95.9 ESTABLISHED; RECOGNITION CONFERRED.] (a) A five-year pilot 95.10 project beginning in the 2005-2006 school year is established to 95.11 recognize teachers' critical role in improving student 95.12 achievement and school performance in those district elementary 95.13 schools and charter elementary schools that have consistently 95.14 failed to demonstrate adequate yearly progress under Minnesota 95.15 Statutes, section 120B.35, and where at least 28 percent of the 95.16 student population is eligible to receive a free or 95.17 reduced-price meal in the school year in which an application 95.18 under this section is submitted to the education commissioner. 95.19 In order to measure teachers' critical role in improving student 95.20 achievement and school performance, elementary schools that 95.21 participate in the project, among other measures, must use 95.22 assessments of students' academic achievement, to the extent 95.23 available, to make longitudinal comparisons of each student's 95.24 academic growth over time. Districts, on behalf of a district 95.25 elementary school, and charter elementary schools may apply to 95.26 the commissioner to participate in the project in the form and 95.27 manner the commissioner prescribes. A plan described under 95.28 paragraph (c) must accompany the district or charter elementary 95.29 school application. The commissioner must consider selecting 95.30 project participants from urban, suburban, and rural areas 95.31 throughout the state and must select no more than three 95.32 elementary schools to participate. 95.33 (b) "Principal" for purposes of this section means the 95.34 school principal or other person having administrative control 95.35 of the school. The principal may receive compensation under 95.36 this subdivision in addition to the principal's current salary, 96.1 consistent with the plan submitted to the commissioner under 96.2 paragraph (c). 96.3 (c) To participate in the project, an elementary school, in 96.4 consultation with the district where applicable, and subject to 96.5 the commissioner's approval, must develop a plan consistent with 96.6 subdivision 2 or 3, as appropriate, that: 96.7 (1) delegates specific powers and duties, allows the 96.8 principal to decide how to allocate financial and personnel 96.9 resources and from whom to purchase goods and services, and 96.10 allocates revenue to the school, where applicable; 96.11 (2) includes a design for implementing a value-added 96.12 assessment model that reliably estimates teacher and school 96.13 effects on students' academic achievement over time for 96.14 different classroom settings, for team teaching arrangements, 96.15 and for other teaching circumstances; and 96.16 (3) records student attendance. 96.17 The plan the elementary school implements must accommodate 96.18 diverse data from various test sources and must use each 96.19 student's test data across grades and subjects even when the 96.20 data are incomplete. The data on teachers generated under the 96.21 value-added assessment model are private data under Minnesota 96.22 Statutes, section 13.02, subdivision 12. 96.23 (d) The principal, using the data acquired under paragraph 96.24 (c), clause (2), to measure improvements in student achievement 96.25 and school performance, must identify and recognize those 96.26 classroom teachers who have successfully fostered educational 96.27 improvement and are therefore eligible to receive compensation 96.28 under this subdivision in addition to their current salary. The 96.29 principal must determine the amount of added compensation each 96.30 eligible teacher receives and the payment schedule, consistent 96.31 with the plan submitted to the commissioner under paragraph 96.32 (c). A teacher's total annual salary under this section must 96.33 not exceed $100,000. 96.34 Subd. 2. [PARTICIPATING CHARTER ELEMENTARY SCHOOLS.] All 96.35 provisions of Minnesota Statutes, sections 124D.10 and 124D.11, 96.36 apply to a charter elementary school participating in the 97.1 project under this section, consistent with the plan developed 97.2 and approved under subdivision 1, paragraph (c), except that, 97.3 for purposes of this section: 97.4 (1) a charter elementary school contract must be entered 97.5 into or extended for a five-year term beginning in the first 97.6 school year of participation unless the school board or the 97.7 commissioner terminates the school's participation; and 97.8 (2) a charter elementary school must report information 97.9 required by the commissioner under this section and consistent 97.10 with Minnesota Statutes, chapter 13. 97.11 The charter school sponsor or the commissioner may terminate the 97.12 school's participation during the project term for any ground 97.13 listed in Minnesota Statutes, section 124D.10, subdivision 23, 97.14 paragraph (b). 97.15 Subd. 3. [PARTICIPATING DISTRICT ELEMENTARY SCHOOLS.] (a) 97.16 The provisions of Minnesota Statutes, section 124D.10, governing 97.17 charter elementary schools apply to a participating district 97.18 elementary school during the term of the pilot project to the 97.19 extent described in this subdivision, and consistent with the 97.20 plan developed and approved under subdivision 1, paragraph (c). 97.21 The words "participating school" must be substituted for 97.22 "charter school," the words "school district" must be 97.23 substituted for "sponsor," and the word "plan" must be 97.24 substituted for "contract" under Minnesota Statutes, section 97.25 124D.10. 97.26 (b) Minnesota Statutes, section 124D.10, subdivisions 1, 2, 97.27 2a, 3, 4 except as provided in paragraph (c), 6a, 9, 10, 15, 16 97.28 except as provided in paragraph (i), 17, 18, 19, 21, 23a, and 97.29 24, do not apply to a participating school under this section. 97.30 (c) Under Minnesota Statutes, section 124D.10, subdivision 97.31 4, governing the formation of a school, a participating school 97.32 must select a board of directors composed of at least five 97.33 members, one of whom must be the principal. 97.34 (d) Under Minnesota Statutes, section 124D.10, subdivision 97.35 5, governing the conversion of existing schools, a participating 97.36 school must initiate its participation in the project at the 98.1 beginning of a school year and must agree to continue 98.2 participating for five school years unless the school board or 98.3 the commissioner terminates the school's participation under 98.4 paragraph (k). 98.5 (e) Under Minnesota Statutes, section 124D.10, subdivisions 98.6 6 and 8, governing contracts and state and local requirements, 98.7 the plan of a participating school developed and approved under 98.8 subdivision 1, paragraph (c), must establish how the school will 98.9 be managed and administered and how it will comply with: 98.10 (1) state human rights laws under Minnesota Statutes, 98.11 chapter 363; 98.12 (2) requirements for gender equity in athletic programs 98.13 under Minnesota Statutes, section 121A.04; 98.14 (3) the Pupil Fair Dismissal Act under Minnesota Statutes, 98.15 sections 121A.40 to 121A.56; 98.16 (4) the public school fee law under Minnesota Statutes, 98.17 sections 123B.34 to 123B.39; 98.18 (5) audit-related requirements and procedures under 98.19 Minnesota Statutes, section 124D.10, subdivision 8, paragraph 98.20 (i); 98.21 (6) data practices laws governing access to student records 98.22 under Minnesota Statutes, section 124D.10, subdivision 8, 98.23 paragraph (k); 98.24 (7) the requirement to recite the pledge of allegiance 98.25 under Minnesota Statutes, section 124D.10, subdivision 8, 98.26 paragraph (l); 98.27 (8) academic standards, assessments, and accountability 98.28 measures under Minnesota Statutes, sections 120B.02 to 120B.04 98.29 and 120B.30 to 120B.36; and 98.30 (9) the length of the school year. 98.31 (f) Under Minnesota Statutes, section 124D.10, subdivision 98.32 7, governing a school's public status, a participating school is 98.33 a public school and is part of the district in which it is 98.34 located. Except as provided in this section, a participating 98.35 school, after consulting with the district superintendent, may 98.36 elect to be exempt from any statute or rule applicable to a 99.1 school, a school board, or a school district. 99.2 (g) Under Minnesota Statutes, section 124D.10, subdivision 99.3 11, governing employment and other operating matters, the plan 99.4 of a participating school developed and approved under 99.5 subdivision 1, paragraph (c), must enable the principal to 99.6 determine who is hired into licensed and nonlicensed positions 99.7 in the school. 99.8 (h) Under Minnesota Statutes, section 124D.10, subdivision 99.9 14, governing annual public reports, a participating school must 99.10 report at least annually to the school board of the district the 99.11 information required by the district, and the district's school 99.12 board must report at least annually to the commissioner the 99.13 information required by the commissioner. The reports are 99.14 public data, consistent with Minnesota Statutes, chapter 13. 99.15 (i) Under Minnesota Statutes, section 124D.10, subdivision 99.16 16, governing transportation, the school district in which the 99.17 participating school is located must provide transportation 99.18 within the district to the students enrolled in the 99.19 participating school. 99.20 (j) Minnesota Statutes, section 124D.10, subdivision 20, 99.21 governing leave to teach in a charter elementary school, applies 99.22 to a participating school except the provision allowing a school 99.23 board to extend a leave of absence does not apply. 99.24 (k) Under Minnesota Statutes, section 124D.10, subdivision 99.25 23, governing causes for nonrenewal or termination of a charter 99.26 elementary school contract, the plan developed and approved 99.27 under subdivision 1, paragraph (c), must be for a five-year 99.28 term. A school district may unilaterally terminate a school's 99.29 participation during the project term for any ground listed in 99.30 Minnesota Statutes, section 124D.10, subdivision 23, paragraph 99.31 (b); provisions governing the nonrenewal of a charter elementary 99.32 school contract do not apply to a participating school. If a 99.33 district terminates the participation of a school, the school 99.34 reverts to the status it held immediately preceding its 99.35 participation in this project. The commissioner may terminate 99.36 the participation of a participating school if the school or the 100.1 school district in which the school is located has a history of 100.2 financial mismanagement, repeated violations of law, or for 100.3 other good cause. 100.4 (l) Under Minnesota Statutes, section 124D.10, subdivision 100.5 25, governing the extent of specific legal authority, the school 100.6 district in which the school is located, and not the school, 100.7 must obtain the requisite insurance on the school's behalf. 100.8 Subd. 4. [ADDITIONAL PARTICIPATING SCHOOLS.] The 100.9 commissioner may seek and select another applicant to 100.10 participate in this project, consistent with this section, if a 100.11 participating school is terminated in the 2005-2006 or 2006-2007 100.12 school year. 100.13 Subd. 5. [REPORTS.] The commissioner, by each March 1 100.14 during the term of the pilot project, must submit progress 100.15 reports to the legislative committees having jurisdiction over 100.16 education policy and finance and must prepare a final written 100.17 report to submit to the legislature by January 1, 2011. The 100.18 reports, among other things, must use data acquired from a 100.19 value-added assessment model to analyze teachers' critical role 100.20 in improving student achievement and school performance and 100.21 reliably estimate teacher and school effects on students' 100.22 academic achievement over time. 100.23 Subd. 6. [COMMISSIONER'S ROLE.] The commissioner, in 100.24 consultation with a school district or charter school sponsor, 100.25 and at the request of a participating school, must provide 100.26 technical support to the participating school. 100.27 Subd. 7. [APPROPRIATIONS BASE.] The base appropriation for 100.28 this program is $500,000 for fiscal years 2006 and 2007. 100.29 [EFFECTIVE DATE.] This section is effective the day 100.30 following final enactment and applies to the 2005-2006 through 100.31 2009-2010 school years. 100.32 Sec. 58. [MODEL POLICY.] 100.33 The education commissioner, in consultation with 100.34 representatives of local school boards, school administrators, 100.35 teachers, parents, students, and other individuals and 100.36 organizations the commissioner determines are appropriate, must 101.1 develop and transmit to school boards a model bullying policy, 101.2 consistent with Minnesota Statutes, section 121A.032. The 101.3 policy must encourage school boards to provide information, 101.4 training, programs, and other initiatives consistent with the 101.5 model policy. 101.6 [EFFECTIVE DATE.] This section is effective the day 101.7 following final enactment. 101.8 Sec. 59. [REVISOR'S INSTRUCTIONS.] 101.9 (a) In Minnesota Statutes and Minnesota Rules, the revisor 101.10 of statutes shall change the terms and phrases "pupil of limited 101.11 English proficiency," "limited English proficiency," "individual 101.12 students whose first language is not English," "the limited 101.13 English speaking children," "those for whom English is a second 101.14 language," "persons for whom English is a second language," "of 101.15 pupils known to speak English as a second language," and similar 101.16 terms and phrases to "English language learners" where 101.17 appropriate. 101.18 (b) In the next edition of Minnesota Statutes, the revisor 101.19 of statutes shall change the headnote of Minnesota Statutes, 101.20 section 122A.18, subdivision 2b, from "READING SPECIALIST." to 101.21 "TEACHER OF READING LICENSURE ENDORSEMENT." 101.22 Sec. 60. [APPROPRIATION.] 101.23 Subdivision 1. [DEPARTMENT OF EDUCATION.] The sums 101.24 indicated in this section are appropriated from the general fund 101.25 to the Department of Education for the fiscal years designated. 101.26 Subd. 2. [VALUE-ADDED ASSESSMENT PROGRAM.] For value-added 101.27 assessment under Minnesota Statutes, section 120B.362. 101.28 $250,000 ..... 2005 101.29 The base budget for this program is $1,600,000 for fiscal 101.30 year 2006 and fiscal year 2007. 101.31 Subd. 3. [SCHOOL INNOVATION AND COOPERATIVE PLANNING 101.32 GRANTS.] For planning grants to service cooperatives, 101.33 cooperating districts, or cooperating charter schools to improve 101.34 the delivery and cost-effectiveness of instructional and 101.35 noninstructional programs and services: 101.36 $ 500,000 ..... 2005 102.1 This is a onetime appropriation. 102.2 Subd. 4. [SCHOLARS OF DISTINCTION.] For the scholars of 102.3 distinction program: 102.4 $ 210,000 ..... 2005 102.5 This is a onetime appropriation. 102.6 [EFFECTIVE DATE.] Subdivision 4 is effective June 30, 2005. 102.7 Sec. 61. [SUNSET.] 102.8 The amendments to Minnesota Statutes, section 122A.16, 102.9 paragraphs (b), (c), and (d), are repealed effective June 30, 102.10 2007. 102.11 Sec. 62. [REPEALER.] 102.12 (a) Minnesota Statutes 2002, sections 124D.41; 124D.42, 102.13 subdivisions 1, 2, 4, 5, and 7; and 124D.43, are repealed. 102.14 (b) Minnesota Statutes 2003 Supplement, section 124D.42, 102.15 subdivision 3, is repealed. 102.16 ARTICLE 3 102.17 SPECIAL PROGRAMS 102.18 Section 1. Minnesota Statutes 2003 Supplement, section 102.19 124D.095, subdivision 4, is amended to read: 102.20 Subd. 4. [ON-LINE LEARNING PARAMETERS.] (a) An on-line 102.21 learning student must receive academic credit for completing the 102.22 requirements of an on-line learning course or program. 102.23 Secondary credits granted to an on-line learning student must be 102.24 counted toward the graduation and credit requirements of the 102.25 enrolling district. The enrolling district must apply the same 102.26 graduation requirements to all students, including on-line 102.27 learning students, and must continue to provide nonacademic 102.28 services to on-line learning students. If a student completes 102.29 an on-line learning course or program that meets or exceeds a 102.30 graduation standard or grade progression requirement at the 102.31 enrolling district, that standard or requirement is met. The 102.32 enrolling district must use the same criteria for accepting 102.33 on-line learning credits or courses as it does for accepting 102.34 credits or courses for transfer students under section 124D.03, 102.35 subdivision 9. The enrolling district may reduce the teacher 102.36 contact time of an on-line learning student in proportion to the 103.1 number of on-line learning courses the student takes from an 103.2 on-line learning provider that is not the enrolling district. 103.3 (b) An on-line learning student may: 103.4 (1) enroll during a single school year in a maximum of 12 103.5 semester-long courses or their equivalent delivered by an 103.6 on-line learning provider or the enrolling district; 103.7 (2) complete course work at a grade level that is different 103.8 from the student's current grade level; and 103.9 (3) enroll in additional courses with the on-line learning 103.10 provider under a separate agreement that includes terms for 103.11 payment of any tuition or course fees. 103.12 (c) A student with a disability may enroll in an on-line 103.13 learning course or programif the student's IEP team determines103.14that on-line learning is appropriate education for the student. 103.15 The student's IEP must then be adapted to reflect the on-line 103.16 learning option. 103.17 (d) An on-line learning student has the same access to the 103.18 computer hardware and education software available in a school 103.19 as all other students in the enrolling district. An on-line 103.20 learning provider must assist an on-line learning student whose 103.21 family qualifies for the education tax credit under section 103.22 290.0674 to acquire computer hardware and educational software 103.23 for on-line learning purposes. 103.24 (e) An enrolling district may offer on-line learning to its 103.25 enrolled students. Such on-line learning does not generate 103.26 on-line learning funds under this section. An enrolling 103.27 district that offers on-line learning only to its enrolled 103.28 students is not subject to the reporting requirements or review 103.29 criteria under subdivision 7. A teacher with a Minnesota 103.30 license must assemble and deliver instruction to enrolled 103.31 students receiving on-line learning from an enrolling district. 103.32 The instruction may include curriculum developed by persons 103.33 other than a teacher with a Minnesota license. 103.34 (f) An on-line learning provider that is not the enrolling 103.35 district is subject to the reporting requirements and review 103.36 criteria under subdivision 7. A teacher with a Minnesota 104.1 license must assemble and deliver instruction to on-line 104.2 learning students. The instruction may include curriculum 104.3 developed by persons other than a teacher with a Minnesota 104.4 license. Unless the commissioner grants a waiver, a teacher 104.5 providing on-line learning instruction must not instruct more 104.6 than 40 students in any one on-line learning course or program. 104.7 Sec. 2. Minnesota Statutes 2002, section 125A.023, 104.8 subdivision 3, is amended to read: 104.9 Subd. 3. [DEFINITIONS.] For purposes of this section and 104.10 section 125A.027, the following terms have the meanings given 104.11 them: 104.12 (a) "Health plan" means: 104.13 (1) a health plan under section 62Q.01, subdivision 3; 104.14 (2) a county-based purchasing plan under section 256B.692; 104.15 (3) a self-insured health plan established by a local 104.16 government under section 471.617; or 104.17 (4) self-insured health coverage provided by the state to 104.18 its employees or retirees. 104.19 (b) For purposes of this section, "health plan company" 104.20 means an entity that issues a health plan as defined in 104.21 paragraph (a). 104.22 (c) "Individual interagency intervention plan" means a 104.23 standardized written plan describing those programs or services 104.24 and the accompanying funding sources available to eligible 104.25 children with disabilities. 104.26 (d) "Interagency intervention service system" means a 104.27 system that coordinates services and programs required in state 104.28 and federal law to meet the needs of eligible children with 104.29 disabilities agesthree tobirth through 21, including: 104.30 (1) services provided under the following programs or 104.31 initiatives administered by state or local agencies: 104.32 (i) the maternal and child health program under title V of 104.33 the Social Security Act, United States Code, title 42, sections104.34701 to 709; 104.35 (ii) the Minnesota Children with Special Health Needs 104.36 program under sections 144.05 and 144.07; 105.1 (iii) the Individuals with Disabilities Education Actunder105.2United States Code, title 20, chapter 33, subchapter II,105.3sections 1411 to 1420, Part B, section 619, and Part C as 105.4 amended; 105.5(iii)(iv) medical assistance under title 42, chapter 7, of 105.6 the Social Security Act, United States Code, title 42, chapter105.77, subchapter XIX, section 1396, et seq.; 105.8(iv)(v)thedevelopmental disabilitiesAssistance and Bill105.9of Rights Act, United States Code, title 42, chapter 75,105.10subchapter II, sections 6021 to 6030, Part Bservices under 105.11 chapter 256B; 105.12(v)(vi) the Head Start Act, United States Code, title 42,105.13chapter 105, subchapter II, sections 9831 to 9852under title 105.14 42, chapter 105, of the Social Security Act; 105.15(vi)(vii) vocational rehabilitation services provided 105.16 underchapterchapters 248 and 268A and the Rehabilitation Act 105.17 of 1973; 105.18(vii)(viii) Juvenile Court Act services provided under 105.19 sections 260.011 to 260.91; 260B.001 to 260B.446; and 260C.001 105.20 to 260C.451; 105.21(viii) the children's mental health collaboratives under105.22section 245.493;105.23(ix) the family service collaboratives under section105.24124D.23;105.25(x) the family community support plan under section105.26245.4881, subdivision 4;105.27(xi) the MinnesotaCare program under chapter 256L;105.28(xii)(ix) Minnesota Comprehensive Children's Mental Health 105.29 Act under section 245.487; 105.30 (x) the community health services grants underchapter105.31145sections 145.88 to 145.9266; 105.32(xiii) the Community Social Services Act funding under the105.33Social Security Act, United States Code, title 42, sections 1397105.34to 1397f; and105.35(xiv) the community transition interagency committees under105.36section 125A.22;106.1 (xi) the Local Public Health Act under chapter 145A; and 106.2 (xii) the Children and Community Services Act, sections 106.3 256M.60 to 256M.80; 106.4 (2) service provision and funding that can be coordinated 106.5 through: 106.6 (i) the children's mental health collaborative under 106.7 section 245.493; 106.8 (ii) the family services collaborative under section 106.9 124D.23; 106.10 (iii) the community transition interagency committees under 106.11 section 125A.22; and 106.12 (iv) the interagency early intervention committees under 106.13 section 125A.259; 106.14 (3) financial and other funding programs to be coordinated 106.15 including medical assistance under title 42, chapter 7, of the 106.16 Social Security Act, the MinnesotaCare program under chapter 106.17 256L, Supplemental Social Security Income, Developmental 106.18 Disabilities Assistance, and any other employment-related 106.19 activities associated with the Social Security Administration; 106.20 and services provided under a health plan in conformity with an 106.21 individual family service plan or an individual education 106.22 plan or an individual interagency intervention plan; and 106.23(3)(4) additional appropriate services that local agencies 106.24 and counties provide on an individual need basis upon 106.25 determining eligibility and receiving a request from the 106.26 interagency early intervention committee and the child's parent. 106.27 (e) "Children with disabilities" has the meaning given in 106.28 section 125A.02. 106.29 (f) A "standardized written plan" means those individual 106.30 services or programs available through the interagency 106.31 intervention service system to an eligible child other than the 106.32 services or programs described in the child's individual 106.33 education plan or the child's individual family service plan. 106.34 Sec. 3. Minnesota Statutes 2003 Supplement, section 106.35 125A.023, subdivision 4, is amended to read: 106.36 Subd. 4. [STATE INTERAGENCY COMMITTEE.] (a) The governor 107.1 shall convenea 19-memberan interagency committee to develop 107.2 and implement a coordinated, multidisciplinary, interagency 107.3 intervention service system for children agesthree tobirth 107.4 through 21 with disabilities. The commissioners ofcommerce,107.5 education, health,human rights,human services,economic107.6security,andcorrectionsemployment and economic development 107.7 shall each appoint two committee members from their departments; 107.8 the commissioners of corrections, human rights, and commerce 107.9 shall each appoint one member from their departments; the 107.10 Association of Minnesota Counties shall appoint two county 107.11 representatives, one of whom must be an elected official, as 107.12 committee members; and the Minnesota School Boards Association, 107.13 the Minnesota Administrators of Special Education, and the 107.14 School Nurse Association of Minnesota shall each appoint one 107.15 committee member; the governor shall appoint two parent 107.16 representatives of a child who is eligible for special 107.17 education. The committee shall select a chair from among its 107.18 members. 107.19 (b) The committee shall: 107.20 (1) identify and assist in removing state and federal 107.21 barriers to local coordination of services provided to children 107.22 with disabilities; 107.23 (2) identify adequate, equitable, and flexible funding 107.24 sources to streamline these services; 107.25 (3) develop guidelines for implementing policies that 107.26 ensure a comprehensive and coordinated system of all state and 107.27 local agency services, including multidisciplinary assessment 107.28 practices for children with disabilities ages three to 21; 107.29 (4) develop, consistent with federal law, a standardized 107.30 written plan for providing services to a child with 107.31 disabilities; 107.32 (5) identify how current systems for dispute resolution can 107.33 be coordinated and develop guidelines for that coordination; 107.34 (6) develop an evaluation process to measure the success of 107.35 state and local interagency efforts in improving the quality and 107.36 coordination of services to children with disabilities ages 108.1 three to 21; 108.2 (7) develop guidelines to assist the governing boards of 108.3 the interagency early intervention committees in carrying out 108.4 the duties assigned in section 125A.027, subdivision 1, 108.5 paragraph (b); and 108.6 (8) carry out other duties necessary to develop and 108.7 implement within communities a coordinated, multidisciplinary, 108.8 interagency intervention service system for children with 108.9 disabilities. 108.10 (c) The committee shall consult on an ongoing basis with 108.11 the state Education Advisory Committee for Special Education and 108.12 the governor's Interagency Coordinating Council in carrying out 108.13 its duties under this section, including assisting the governing 108.14 boards of the interagency early intervention committees. 108.15 Sec. 4. Minnesota Statutes 2002, section 125A.03, is 108.16 amended to read: 108.17 125A.03 [SPECIAL INSTRUCTION FOR CHILDREN WITH A 108.18 DISABILITY.] 108.19 (a) As defined in paragraph (b), every district must 108.20 provide special instruction and services, either within the 108.21 district or in another district, for all children with a 108.22 disability, including providing required services under the Code 108.23 of Federal Regulations, title 34, section 300.121, paragraph 108.24 (d), to those children suspended or expelled from school for 108.25 more than ten school days in that school year, who are residents 108.26 of the district and who are disabled as set forth in section 108.27 125A.02. For purposes of state and federal special education 108.28 laws, the phrase "special instruction and services" in the state 108.29 education code means a free and appropriate public education 108.30 provided to an eligible child with disabilities and includes 108.31 special education and related services defined in the 108.32 Individuals with Disabilities Education Act, subpart A, section 108.33 300.24. 108.34 (b) Notwithstanding any age limits in laws to the contrary, 108.35 special instruction and services must be provided from birth 108.36 until July 1 after the child with a disability becomes 21 years 109.1 old but shall not extend beyond secondary school or its 109.2 equivalent, except as provided in section 124D.68, subdivision 109.3 2. Local health, education, and social service agencies must 109.4 refer children under age five who are known to need or suspected 109.5 of needing special instruction and services to the school 109.6 district. Districts with less than the minimum number of 109.7 eligible children with a disability as determined by the 109.8 commissioner must cooperate with other districts to maintain a 109.9 full range of programs for education and services for children 109.10 with a disability. This section does not alter the compulsory 109.11 attendance requirements of section 120A.22. 109.12 [EFFECTIVE DATE.] This section is effective the day 109.13 following final enactment. 109.14 Sec. 5. Minnesota Statutes 2003 Supplement, section 109.15 125A.79, subdivision 1, is amended to read: 109.16 Subdivision 1. [DEFINITIONS.] For the purposes of this 109.17 section, the definitions in this subdivision apply. 109.18 (a) "Unreimbursed special education cost" means the sum of 109.19 the following: 109.20 (1) expenditures for teachers' salaries, contracted 109.21 services, supplies, equipment, and transportation services 109.22 eligible for revenue under section 125A.76; plus 109.23 (2) expenditures for tuition bills received under sections 109.24 125A.03 to 125A.24 and 125A.65 for services eligible for revenue 109.25 under section 125A.76, subdivision 2; minus 109.26 (3) revenue for teachers' salaries, contracted services, 109.27 supplies, and equipment under section 125A.76; minus 109.28 (4) tuition receipts under sections 125A.03 to 125A.24 and 109.29 125A.65 for services eligible for revenue under section 125A.76, 109.30 subdivision 2. 109.31 (b)"General revenue" means for fiscal year 1996, the sum109.32of the general education revenue according to section 126C.10,109.33subdivision 1, as adjusted according to section 127A.47,109.34subdivision 7, plus the total referendum revenue according to109.35section 126C.17, subdivision 4. For fiscal years 1997 and109.36later,"General revenue" means the sum of the general education 110.1 revenue according to section 126C.10, subdivision 1, as adjusted 110.2 according to section 127A.47, subdivisions 7 and 8, plus the 110.3 total referendum revenue minus transportation sparsity revenue 110.4 minus total operating capital revenue. 110.5 (c) "Average daily membership" has the meaning given it in 110.6 section 126C.05. 110.7 (d) "Program growth factor" means 1.02 for fiscal year 110.8 2003, and 1.0 for fiscal year 2004 and later. 110.9 Sec. 6. Minnesota Statutes 2002, section 125A.79, 110.10 subdivision 5, is amended to read: 110.11 Subd. 5. [INITIAL EXCESS COST AID; FISCAL YEARS 2003 AND 110.12 2004.] For fiscal years20022003 andlater2004, a district's 110.13 initial excess cost aid equals the greatest of: 110.14 (1) 75 percent of the difference between (i) the district's 110.15 unreimbursed special education cost and (ii) 4.36 percent of the 110.16 district's general revenue; 110.17 (2) 70 percent of the difference between (i) the increase 110.18 in the district's unreimbursed special education cost between 110.19 the base year as defined in section 125A.76, subdivision 1, and 110.20 the current year and (ii) 1.6 percent of the district's general 110.21 revenue; or 110.22 (3) zero. 110.23 Sec. 7. Minnesota Statutes 2002, section 125A.79, is 110.24 amended by adding a subdivision to read: 110.25 Subd. 5a. [INITIAL EXCESS COST AID.] For fiscal years 2005 110.26 and later, a district's initial excess cost aid equals the 110.27 greater of: 110.28 (1) 75 percent of the difference between (i) the district's 110.29 unreimbursed special education cost for the previous fiscal 110.30 year, and (ii) the sum of 4.36 percent of the district's general 110.31 revenue for the previous fiscal year and the district's 110.32 supplemental excess cost aid for the previous fiscal year; or 110.33 (2) zero. 110.34 Sec. 8. Minnesota Statutes 2002, section 125A.79, is 110.35 amended by adding a subdivision to read: 110.36 Subd. 5b. [SUPPLEMENTAL EXCESS COST AID.] (a) For fiscal 111.1 years 2005 and later, a district's supplemental excess cost aid 111.2 equals the greater of: 111.3 (1) 75 percent of the difference between (i) the increase 111.4 in the district's unreimbursed special education excess cost 111.5 between the previous fiscal year and the current fiscal year, 111.6 and (ii) $80 times the district's adjusted marginal cost pupil 111.7 units for the current fiscal year; or 111.8 (2) zero. 111.9 (b) The state total supplemental excess cost aid for any 111.10 fiscal year must not exceed $2,000,000. If the state total 111.11 supplemental excess cost aid according to paragraph (a) exceeds 111.12 $2,000,000, the supplemental excess cost aid for each district 111.13 shall be reduced proportionately so that the state total equals 111.14 $2,000,000. 111.15 Sec. 9. Minnesota Statutes 2002, section 125A.79, 111.16 subdivision 7, is amended to read: 111.17 Subd. 7. [DISTRICT SPECIAL EDUCATION EXCESS COST AID.] (a) 111.18 A district's special education excess cost aid for fiscal year 111.1920022003 andlater2004 equals the state total special 111.20 education excess cost aid times the ratio of the district's 111.21 initial excess cost aid to the state total initial excess cost 111.22 aid. 111.23 (b) A district's special education excess cost aid for 111.24 fiscal year 2005 and later equals the sum of: 111.25 (i) the product of the difference between the state total 111.26 special education excess cost aid and the state total 111.27 supplemental excess cost aid times the ratio of the district's 111.28 initial excess cost aid to the state total initial excess cost 111.29 aid; and 111.30 (ii) the district's supplemental excess cost aid according 111.31 to subdivision 5b. 111.32 Sec. 10. Laws 2003, First Special Session chapter 9, 111.33 article 3, section 19, is amended to read: 111.34 Sec. 19. [DEPARTMENT RESPONSIBILITY.] 111.35 ByJanuary 1June 1, 2004, the commissioner of education 111.36 must adopt rules that: 112.1 (1) establish criteria for selecting hearing officers, the 112.2 standards of conduct to which a hearing officer must adhere, and 112.3 a process to evaluate the hearing system; 112.4 (2) ensure that appropriately trained and knowledgeable 112.5 persons conduct due process hearings in compliance with federal 112.6 law; and 112.7 (3) create standards for expedited due process hearings 112.8 under federal law. 112.9 By March 1, 2004, the commissioner of education must 112.10 develop and make available a notice for participants in 112.11 state-provided dispute resolution processes that informs 112.12 participants of their rights concerning dispute resolution. 112.13 [EFFECTIVE DATE.] This section is effective retroactive to 112.14 July 1, 2003. 112.15 ARTICLE 4 112.16 FACILITIES 112.17 Section 1. [123B.515] [CHROMATED COPPER ARSENATE TREATED 112.18 LUMBER PROHIBITED.] 112.19 As of the effective date of this section, a school district 112.20 and a charter school are prohibited from purchasing chromated 112.21 copper arsenate treated lumber, or products made of chromated 112.22 copper arsenate treated lumber, for use as playground equipment, 112.23 benches, picnic tables, walkways, fences, or landscape timbers. 112.24 [EFFECTIVE DATE.] This section is effective the day 112.25 following final enactment. 112.26 Sec. 2. Minnesota Statutes 2002, section 123B.53, 112.27 subdivision 6, is amended to read: 112.28 Subd. 6. [DEBT SERVICE EQUALIZATION AID.] (a) A district's 112.29 debt service equalization aid is the sum of the district's first 112.30 tier debt service equalization aid and the district's second 112.31 tier debt service equalization aid. 112.32 (b) A district's first tier debt service equalization aid 112.33 equals the difference between the district's first tier debt 112.34 service equalization revenue and the district's first tier 112.35 equalized debt service levy. 112.36 (c) A district's second tier debt service equalization aid 113.1 equals the difference between the district's second tier debt 113.2 service equalization revenue and the district's second tier 113.3 equalized debt service levy. 113.4 Sec. 3. Minnesota Statutes 2003 Supplement, section 113.5 123B.54, is amended to read: 113.6 123B.54 [DEBT SERVICE APPROPRIATION.] 113.7 (a)$25,987,000 in fiscal year 2002, $29,941,000 in fiscal113.8year 2003, $40,075,000$35,598,000 in fiscal year 2004,and113.9$39,774,000$31,220,000 in fiscalyearsyear 2005, $27,830,000 113.10 in fiscal year 2006, and $24,872,000 in fiscal year 2007 and 113.11 later are appropriated from the general fund to the commissioner 113.12 of education for payment of debt service equalization aid under 113.13 section 123B.53. 113.14 (b) The appropriations in paragraph (a) must be reduced by 113.15 the amount of any money specifically appropriated for the same 113.16 purpose in any year from any state fund. 113.17 [EFFECTIVE DATE.] This section is effective the day 113.18 following final enactment. 113.19 Sec. 4. Minnesota Statutes 2002, section 123B.71, 113.20 subdivision 9, is amended to read: 113.21 Subd. 9. [INFORMATION REQUIRED.] A school board proposing 113.22 to construct a facility described in subdivision 8 shall submit 113.23 to the commissioner a proposal containing information including 113.24 at least the following: 113.25 (1) the geographic area and population to be served, 113.26 preschool through grade 12 student enrollments for the past five 113.27 years, and student enrollment projections for the next five 113.28 years; 113.29 (2) a list of existing facilities by year constructed, 113.30 their uses, and an assessment of the extent to which alternate 113.31 facilities are available within the school district boundaries 113.32 and in adjacent school districts; 113.33 (3) a list of the specific deficiencies of the facility 113.34 that demonstrate the need for a new or renovated facility to be 113.35 provided, and a list of the specific benefits that the new or 113.36 renovated facility will provide to the students, teachers, and 114.1 community users served by the facility; 114.2 (4) the relationship of the project to any priorities 114.3 established by the school district, educational cooperatives 114.4 that provide support services, or other public bodies in the 114.5 service area; 114.6 (5) a specification of how the project will increase 114.7 community use of the facility and whether and how the project 114.8 will increase collaboration with other governmental or nonprofit 114.9 entities; 114.10 (6) a description of the project, including the 114.11 specification of site and outdoor space acreage and square 114.12 footage allocations for classrooms, laboratories, and support 114.13 spaces; estimated expenditures for the major portions of the 114.14 project; and the dates the project will begin and be completed; 114.15 (7) a specification of the source of financing the project; 114.16 the scheduled date for a bond issue or school board action; a 114.17 schedule of payments, including debt service equalization aid; 114.18 and the effect of a bond issue on local property taxes by the 114.19 property class and valuation; 114.20 (8) an analysis of how the proposed new or remodeled 114.21 facility will affect school district operational or 114.22 administrative staffing costs, and how the district's operating 114.23 budget will cover any increased operational or administrative 114.24 staffing costs; 114.25 (9) a description of the consultation with local or state 114.26 road and transportation officials on school site access and 114.27 safety issues, and the ways that the project will address those 114.28 issues; 114.29 (10) a description of how indoor air quality issues have 114.30 been considered and a certification that the architects and 114.31 engineers designing the facility will have professional 114.32 liability insurance; 114.33 (11) as required under section 123B.72, for buildings 114.34 coming into service after July 1, 2002, a certification that the 114.35 plans and designs for the extensively renovated or new 114.36 facility's heating, ventilation, and air conditioning systems 115.1 will meet or exceed code standards; will provide for the 115.2 monitoring of outdoor airflow and total airflow of ventilation 115.3 systems; and will provide an indoor air quality filtration 115.4 system that meets ASHRAE standard 52.1; 115.5 (12) a specification of any desegregation requirements that 115.6 cannot be met by any other reasonable means;and115.7 (13) a specification, if applicable, of how the facility 115.8 will utilize environmentally sustainable school facility design 115.9 concepts; and 115.10 (14) a description, if applicable, of how the facility will 115.11 address classroom acoustics, and whether the facility will meet 115.12 the American National Standard Institute's guidelines for 115.13 classroom acoustics. 115.14 [EFFECTIVE DATE.] This section is effective for proposals 115.15 submitted on or after July 1, 2004. 115.16 Sec. 5. [125B.26] [TELECOMMUNICATIONS/INTERNET ACCESS 115.17 EQUITY AID.] 115.18 Subdivision 1. [COSTS TO BE SUBMITTED.] (a) A district or 115.19 charter school shall submit its actual 115.20 telecommunications/Internet access costs for the previous fiscal 115.21 year, adjusted for any e-rate revenue received, to the 115.22 department by August 15 of each year as prescribed by the 115.23 commissioner. Costs eligible for reimbursement under this 115.24 program are limited to the following: 115.25 (1) ongoing or recurring telecommunications/Internet access 115.26 costs associated with Internet access, data lines, and video 115.27 links providing: 115.28 (i) the equivalent of one data line, video link, or 115.29 integrated data/video link that relies on a transport medium 115.30 that operates at a speed of 1.544 megabytes per second (T1) for 115.31 each elementary school, middle school, or high school under 115.32 section 120A.05, subdivisions 9, 11, and 13, including the 115.33 recurring telecommunications line lease costs and ongoing 115.34 Internet access service fees; or 115.35 (ii) the equivalent of one data line or video circuit, or 115.36 integrated data/video link that relies on a transport medium 116.1 that operates at a minimum speed of 1.544 megabytes per second 116.2 (T1) for each district, including recurring telecommunications 116.3 line lease costs and ongoing Internet access service fees; 116.4 (2) recurring costs of contractual or vendor-provided 116.5 maintenance on the school district's wide area network to the 116.6 point of presence at the school building up to the router, 116.7 codec, or other service delivery equipment located at the point 116.8 of presence termination at the school or school district; 116.9 (3) recurring costs of cooperative, shared arrangements for 116.10 regional delivery of telecommunications/Internet access between 116.11 school districts, postsecondary institutions, and public 116.12 libraries including network gateways, peering points, regional 116.13 network infrastructure, Internet2 access, and network support, 116.14 maintenance, and coordination; and 116.15 (4) service provider installation fees for installation of 116.16 new telecommunications lines or increased bandwidth. 116.17 (b) Costs not eligible for reimbursement under this program 116.18 include: 116.19 (1) recurring costs of school district staff providing 116.20 network infrastructure support; 116.21 (2) recurring costs associated with voice and standard 116.22 telephone service; 116.23 (3) costs associated with purchase of network hardware, 116.24 telephones, computers, or other peripheral equipment needed to 116.25 deliver telecommunications access to the school or school 116.26 district; 116.27 (4) costs associated with laying fiber for 116.28 telecommunications access; 116.29 (5) costs associated with wiring school or school district 116.30 buildings; 116.31 (6) costs associated with purchase and/or installation of 116.32 Internet filtering; and 116.33 (7) costs associated with digital content, including 116.34 on-line learning or distance learning programming, and 116.35 information databases. 116.36 Subd. 2. [E-RATES.] To be eligible for aid under this 117.1 section, a district or charter school is required to file an 117.2 e-rate application either separately or through its 117.3 telecommunications access cluster and to have a current 117.4 technology plan on file with the Department of Education. 117.5 Discounts received on telecommunications expenditures shall be 117.6 reflected in the costs submitted to the department for aid under 117.7 this section. 117.8 Subd. 3. [REIMBURSEMENT CRITERIA.] The commissioner shall 117.9 develop criteria for approving costs submitted by school 117.10 districts and charter schools under subdivision 1. 117.11 Subd. 4. [DISTRICT AID.] For fiscal year 2005 and later, a 117.12 district or charter school's Internet access equity aid equals 117.13 90 percent of the district or charter school's approved cost for 117.14 the previous fiscal year according to subdivision 1 exceeding 117.15 $15 times the district's adjusted marginal cost pupil units for 117.16 the previous fiscal year. 117.17 Subd. 5. [TELECOMMUNICATIONS/INTERNET ACCESS SERVICES FOR 117.18 NONPUBLIC SCHOOLS.] (a) Districts shall provide each year upon 117.19 formal request by or on behalf of a nonpublic school, not 117.20 including home schools, located in that district or area, 117.21 ongoing or recurring telecommunications access services to the 117.22 nonpublic school either through existing district providers or 117.23 through separate providers. 117.24 (b) The amount of district aid for telecommunications 117.25 access services for each nonpublic school under this subdivision 117.26 equals the lesser of: 117.27 (1) 90 percent of the nonpublic school's approved cost for 117.28 the previous fiscal year according to subdivision 1 exceeding 117.29 $10 times the number of weighted pupils enrolled at the 117.30 nonpublic school as of October 1 of the previous school year; or 117.31 (2) the product of the district's aid per adjusted marginal 117.32 cost pupil unit according to subdivision 4 times the number of 117.33 weighted pupils enrolled at the nonpublic school as of October 1 117.34 of the previous school year. 117.35 (c) For purposes of this subdivision, nonpublic school 117.36 pupils shall be weighted by grade level using the weighing 118.1 factors defined in section 126C.05, subdivision 1. 118.2 (d) Each year, a district providing services under 118.3 paragraph (a) may claim up to five percent of the aid determined 118.4 in paragraph (b) for costs of administering this subdivision. 118.5 No district may expend an amount for these telecommunications 118.6 access services which exceeds the amount allocated under this 118.7 subdivision. The nonpublic school is responsible for the 118.8 Internet access costs not covered by this section. 118.9 (e) At the request of a nonpublic school, districts may 118.10 allocate the amount determined in paragraph (b) directly to the 118.11 nonpublic school to pay for or offset the nonpublic school's 118.12 costs for telecommunications access services. However, the 118.13 amount allocated directly to the nonpublic school may not exceed 118.14 the actual amount of the school's ongoing or recurring 118.15 telecommunications access costs. 118.16 Subd. 6. [SEVERABILITY.] If any portion of this section is 118.17 found by a court to be unconstitutional, the remaining portions 118.18 of the section shall remain in effect. 118.19 [EFFECTIVE DATE.] This section is effective for revenue for 118.20 fiscal year 2005. 118.21 Sec. 6. Minnesota Statutes 2003 Supplement, section 118.22 126C.40, subdivision 1, is amended to read: 118.23 Subdivision 1. [TO LEASE BUILDING OR LAND.] (a) When an 118.24 independent or a special school district or a group of 118.25 independent or special school districts finds it economically 118.26 advantageous to rent or lease a building or land for any 118.27 instructional purposes or for school storage or furniture 118.28 repair, and it determines that the operating capital revenue 118.29 authorized under section 126C.10, subdivision 13, is 118.30 insufficient for this purpose, it may apply to the commissioner 118.31 for permission to make an additional capital expenditure levy 118.32 for this purpose. An application for permission to levy under 118.33 this subdivision must contain financial justification for the 118.34 proposed levy, the terms and conditions of the proposed lease, 118.35 and a description of the space to be leased and its proposed use. 118.36 (b) The criteria for approval of applications to levy under 119.1 this subdivision must include: the reasonableness of the price, 119.2 the appropriateness of the space to the proposed activity, the 119.3 feasibility of transporting pupils to the leased building or 119.4 land, conformity of the lease to the laws and rules of the state 119.5 of Minnesota, and the appropriateness of the proposed lease to 119.6 the space needs and the financial condition of the district. 119.7 The commissioner must not authorize a levy under this 119.8 subdivision in an amount greater than90 percent ofthe cost to 119.9 the district of renting or leasing a building or land for 119.10 approved purposes. The proceeds of this levy must not be used 119.11 for custodial or other maintenance services. A district may not 119.12 levy under this subdivision for the purpose of leasing or 119.13 renting a district-owned building or site to itself. 119.14 (c) For agreements finalized after July 1, 1997, a district 119.15 may not levy under this subdivision for the purpose of leasing: 119.16 (1) a newly constructed building used primarily for regular 119.17 kindergarten, elementary, or secondary instruction; or (2) a 119.18 newly constructed building addition or additions used primarily 119.19 for regular kindergarten, elementary, or secondary instruction 119.20 that contains more than 20 percent of the square footage of the 119.21 previously existing building. 119.22 (d) Notwithstanding paragraph (b), a district may levy 119.23 under this subdivision for the purpose of leasing or renting a 119.24 district-owned building or site to itself only if the amount is 119.25 needed by the district to make payments required by a lease 119.26 purchase agreement, installment purchase agreement, or other 119.27 deferred payments agreement authorized by law, and the levy 119.28 meets the requirements of paragraph (c). A levy authorized for 119.29 a district by the commissioner under this paragraph may be in 119.30 the amount needed by the district to make payments required by a 119.31 lease purchase agreement, installment purchase agreement, or 119.32 other deferred payments agreement authorized by law, provided 119.33 that any agreement include a provision giving the school 119.34 districts the right to terminate the agreement annually without 119.35 penalty. 119.36 (e) The total levy under this subdivision for a district 120.1 for any year must not exceed$90$100 times the resident pupil 120.2 units for the fiscal year to which the levy is attributable. 120.3 (f) For agreements for which a review and comment have been 120.4 submitted to the Department of Education after April 1, 1998, 120.5 the term "instructional purpose" as used in this subdivision 120.6 excludes expenditures on stadiums. 120.7 (g) The commissioner of education may authorize a school 120.8 district to exceed the limit in paragraph (e) if the school 120.9 district petitions the commissioner for approval. The 120.10 commissioner shall grant approval to a school district to exceed 120.11 the limit in paragraph (e) for not more than five years if the 120.12 district meets the following criteria: 120.13 (1) the school district has been experiencing pupil 120.14 enrollment growth in the preceding five years; 120.15 (2) the purpose of the increased levy is in the long-term 120.16 public interest; 120.17 (3) the purpose of the increased levy promotes colocation 120.18 of government services; and 120.19 (4) the purpose of the increased levy is in the long-term 120.20 interest of the district by avoiding over construction of school 120.21 facilities. 120.22 (h) A school district that is a member of an intermediate 120.23 school district may include in its authority under this section 120.2490 percent ofthe costs associated with leases of administrative 120.25 and classroom space for intermediate school district programs. 120.26 This authority must not exceed$22.50$25 times the adjusted 120.27 marginal cost pupil units of the member districts. This 120.28 authority is in addition to any other authority authorized under 120.29 this section. 120.30 (i) In addition to the allowable capital levies in 120.31 paragraph (a), a district that is a member of the "Technology 120.32 and Information Education Systems" data processing joint board, 120.33 that finds it economically advantageous to enter into a lease 120.34 purchase agreement for a building for a group of school 120.35 districts or special school districts for staff development 120.36 purposes, may levy for its portion of lease costs attributed to 121.1 the district within the total levy limit in paragraph (e). 121.2 [EFFECTIVE DATE.] This section is effective for taxes 121.3 payable in 2005. 121.4 Sec. 7. Minnesota Statutes 2003 Supplement, section 121.5 126C.63, subdivision 8, is amended to read: 121.6 Subd. 8. [MAXIMUM EFFORT DEBT SERVICE LEVY.] (a) "Maximum 121.7 effort debt service levy" means the lesser of: 121.8 (1) a levy in whichever of the following amounts is 121.9 applicable: 121.10 (i) in any district receiving a debt service loan for a 121.11 debt service levy payable in 2002 and thereafter, or granted a 121.12 capital loan after January 1, 2002, a levy in total dollar 121.13 amount computed at a rate of 40 percent of adjusted net tax 121.14 capacity for taxes payable in 2002 and thereafter; 121.15 (ii) in any district receiving a debt service loan for a 121.16 debt service levy payable in 2001 or earlier, or granted a 121.17 capital loan before January 2, 2001, a levy in a total dollar 121.18 amount computed at a rate of3228 percent of adjusted net tax 121.19 capacity for taxes payable in 2002 and thereafter; or 121.20 (2) a levy in any district for which a capital loan was 121.21 approved prior to August 1, 1981, a levy in a total dollar 121.22 amount equal to the sum of the amount of the required debt 121.23 service levy and an amount which when levied annually will in 121.24 the opinion of the commissioner be sufficient to retire the 121.25 remaining interest and principal on any outstanding loans from 121.26 the state within 30 years of the original date when the capital 121.27 loan was granted. 121.28 (b) The board in any district affected by the provisions of 121.29 paragraph (a), clause (2), may elect instead to determine the 121.30 amount of its levy according to the provisions of paragraph (a), 121.31 clause (1). If a district's capital loan is not paid within 30 121.32 years because it elects to determine the amount of its levy 121.33 according to the provisions of paragraph (a), clause (2), the 121.34 liability of the district for the amount of the difference 121.35 between the amount it levied under paragraph (a), clause (2), 121.36 and the amount it would have levied under paragraph (a), clause 122.1 (1), and for interest on the amount of that difference, must not 122.2 be satisfied and discharged pursuant to Minnesota Statutes 1988, 122.3 or an earlier edition of Minnesota Statutes if applicable, 122.4 section 124.43, subdivision 4. 122.5 [EFFECTIVE DATE.] This section is effective for taxes 122.6 payable in 2005. 122.7 Sec. 8. Minnesota Statutes 2002, section 127A.45, 122.8 subdivision 11, is amended to read: 122.9 Subd. 11. [PAYMENT PERCENTAGE FOR REIMBURSEMENT AIDS.] One 122.10 hundred percent of the aid for the previous fiscal year must be 122.11 paid in the current year for the following aids: 122.12 telecommunications/Internet access equity aid according to 122.13 section 125B.26, special education special pupil aid according 122.14 to section 125A.75, subdivision 3, aid for litigation costs 122.15 according to section 125A.75, subdivision 8, aid for 122.16 court-placed special education expenses according to section 122.17 125A.79, subdivision 4, and aid for special education 122.18 out-of-state tuition according to section 125A.79, subdivision 8. 122.19 Sec. 9. Minnesota Statutes 2003 Supplement, section 122.20 475.61, subdivision 4, is amended to read: 122.21 Subd. 4. [SURPLUS FUNDS.] (a) All such taxes shall be 122.22 collected and remitted to the municipality by the county 122.23 treasurer as other taxes are collected and remitted, and shall 122.24 be used only for payment of the obligations on account of which 122.25 levied or to repay advances from other funds used for such 122.26 payments, except that any surplus remaining in the debt service 122.27 fund when the obligations and interest thereon are paid may be 122.28 appropriated to any other general purpose by the municipality. 122.29 However, the amount of any surplus remaining in the debt service 122.30 fund of a school district when the obligations and interest 122.31 thereon are paid shall be used to reduce the general fund levy 122.32 authorized pursuant to chapters 122A, 123A, 123B, 124D, and 126C 122.33 and the state aids authorized pursuant to chapters 122A, 123A, 122.34 123B, 124D, 125A, 126C, and 127A. 122.35 (b) If the district qualified for second tier debt service 122.36 equalization aid in the last year that it qualified for debt 123.1 service equalization aid, the reduction to state aids equals the 123.2 lesser of (1) the amount of the surplus times the ratio of the 123.3 district's second tier debt service equalization aid to the 123.4 district's second tier debt service equalization revenue for the 123.5 last year that the district qualified for debt service 123.6 equalization aid; or (2) the district's cumulative amount of 123.7 debt service equalization aid. 123.8 (c) If the district did not qualify for second tier debt 123.9 service equalization aid in the last year that it qualified for 123.10 debt service equalization aid, the reduction to state aids 123.11 equals the lesser of (1) the amount of the surplus times the 123.12 ratio of the district's debt service equalization aid to the 123.13 district's debt service equalization revenue for the last year 123.14 that the district qualified for debt service equalization aid; 123.15 or (2) the district's cumulative amount of debt service 123.16 equalization aid. 123.17(c)(d) The reduction to the general fund levy equals the 123.18 total amount of the surplus minus the reduction to state aids. 123.19 [EFFECTIVE DATE.] This section is effective for revenue for 123.20 fiscal year 2005. 123.21 Sec. 10. Laws 2003, First Special Session chapter 9, 123.22 article 4, section 29, is amended to read: 123.23 Sec. 29. [GARAGE LEASE LEVY; SARTELL.] 123.24 For taxes payable in 2004, 2005,and2006, and 2007, 123.25 independent school district No.740748, Sartell, may levy up to 123.26 $107,000 each year for the purpose of leasing a school bus 123.27 storage facility. The department of education shall include 123.28 this levy in the calculation of eligible building lease levy 123.29 under Minnesota Statutes, section 126C.40, subdivision 1. This 123.30 levy shall not allow the district to exceed the $100 per 123.31 resident marginal cost pupil unit cap in that section. The 123.32 district is eligible to make this levy only if it sells its 123.33 current school bus storage site to the city of Sartell and the 123.34 district may not use this levy as part of a lease purchase 123.35 agreement to replace its current school bus storage facility. 123.36 Sec. 11. [LEASE LEVY; MOUNDS VIEW SCHOOL DISTRICT.] 124.1 Notwithstanding the lease levy restrictions in Minnesota 124.2 Statutes, section 126C.40, subdivision 1, Independent School 124.3 District No. 621, Mounds View, may levy up to $200,000 per year 124.4 for ten years for the purpose of making its payments to Ramsey 124.5 County for the school district's portion of the Ramsey County 124.6 maintenance facility located in Arden Hills. 124.7 [EFFECTIVE DATE.] This section is effective for taxes 124.8 payable in 2005. 124.9 Sec. 12. [LEVY; GLENCOE-SILVER LAKE.] 124.10 For taxes payable in 2005 only, Independent School District 124.11 No. 2859, Glencoe-Silver Lake, may levy an amount up to $64,000 124.12 for recovering the cost of replacing a gymnasium floor at 124.13 Lakeside Elementary School resulting from storm damage. 124.14 [EFFECTIVE DATE.] This section is effective for taxes 124.15 payable in 2005. 124.16 Sec. 13. [DISABLED ACCESS LEVY AUTHORITY; EAST GRAND 124.17 FORKS.] 124.18 Notwithstanding the time limits established in Minnesota 124.19 Statutes, section 123B.58, subdivision 3, Independent School 124.20 District No. 595, East Grand Forks, may levy up to $150,000 of 124.21 its remaining disabled access levy authority over five or fewer 124.22 years. 124.23 [EFFECTIVE DATE.] This section is effective the day 124.24 following final enactment. 124.25 Sec. 14. [APPROPRIATIONS.] 124.26 Subdivision 1. [DEPARTMENT OF EDUCATION.] The sum 124.27 indicated in this section is appropriated from the general fund 124.28 to the Department of Education for the fiscal year designated. 124.29 Subd. 2. [TELECOMMUNICATIONS/INTERNET ACCESS EQUITY 124.30 AID.] For telecommunications/Internet access cost equity aid 124.31 under Minnesota Statutes, section 125B.26: 124.32 $4,500,000 ..... 2005 124.33 If the appropriation for fiscal year 2005 is insufficient, 124.34 the aid for that year shall be prorated among participating 124.35 schools and districts so as not to exceed the total authorized 124.36 appropriation for that year. The budget base for this program 125.1 for fiscal year 2006 and later is $4,700,000. 125.2 ARTICLE 5 125.3 NUTRITION AND ACCOUNTING; OTHER PROGRAMS 125.4 Section 1. Minnesota Statutes 2003 Supplement, section 125.5 16A.152, subdivision 2, is amended to read: 125.6 Subd. 2. [ADDITIONAL REVENUES; PRIORITY.] (a) If on the 125.7 basis of a forecast of general fund revenues and expenditures, 125.8 the commissioner of finance determines that there will be a 125.9 positive unrestricted budgetary general fund balance at the 125.10 close of the biennium, the commissioner of finance must allocate 125.11 money to the following accounts and purposes in priority order: 125.12 (1) the cash flow account established in subdivision 1 125.13 until that account reaches $350,000,000;and125.14 (2) the budget reserve account established in subdivision 125.15 1a until that account reaches $653,000,000; 125.16 (3) the amount necessary to eliminate all or a portion of 125.17 the property tax revenue recognition shift in section 123B.75, 125.18 subdivision 5; and 125.19 (4) the amount necessary to increase the aid payment 125.20 schedule for school district aids and credits payments in 125.21 section 127A.45 from 80 percent to not more than 90 percent. 125.22 (b) The amounts necessary to meet the requirements of this 125.23 section are appropriated from the general fund within two weeks 125.24 after the forecast is released or, in the case of transfers 125.25 under paragraph (a), clauses (3) and (4), as necessary to meet 125.26 the appropriations schedules otherwise established in statute. 125.27 (c) To the extent that a positive unrestricted budgetary 125.28 general fund balance is projected, appropriations under this 125.29 section must be made before any transfer is made under section 125.30 16A.1522. 125.31 (d) The commissioner of finance shall certify the total 125.32 dollar amount of the reductions under paragraph (a), clauses (3) 125.33 and (4), to the commissioner of education. The commissioner of 125.34 education shall increase the aid payment percentage and reduce 125.35 the property tax shift percentage by these amounts and apply 125.36 those reductions to the current fiscal year and thereafter. 126.1 [EFFECTIVE DATE.] This section is effective the day 126.2 following final enactment. 126.3 Sec. 2. Minnesota Statutes 2002, section 123A.05, 126.4 subdivision 2, is amended to read: 126.5 Subd. 2. [RESERVE REVENUE.] Each district that is a member 126.6 of an area learning center must reserve revenue in an amount 126.7 equal to the sum of (1) at least 90 percent of the district 126.8 average general education revenue per pupil unit minus an amount 126.9 equal to the product of the formula allowance according to 126.10 section 126C.10, subdivision 2, times .0485, calculated without 126.11 basic skills revenue,and transportation sparsity revenue,and126.12the transportation portion of the transition revenue adjustment,126.13 times the number of pupil units attending an area learning 126.14 center program under this section, plus (2) the amount of basic 126.15 skills revenue generated by pupils attending the area learning 126.16 center. The amount of reserved revenue under this subdivision 126.17 may only be spent on program costs associated with the area 126.18 learning center. Compensatory revenue must be allocated 126.19 according to section 126C.15, subdivision 2. 126.20 Sec. 3. Minnesota Statutes 2002, section 123B.75, is 126.21 amended by adding a subdivision to read: 126.22 Subd. 4a. [TACONITE REVENUE.] Taconite revenue received in 126.23 a calendar year by a school district under section 298.28, 126.24 subdivisions 4, paragraphs (b) and (c), and 11, paragraph (d), 126.25 is fully recognized in the fiscal year in which the February 126.26 payment falls. 126.27 [EFFECTIVE DATE.] This section is effective retroactive 126.28 from July 1, 2003, for school district revenue for fiscal year 126.29 2004. 126.30 Sec. 4. Minnesota Statutes 2003 Supplement, section 126.31 124D.095, subdivision 7, is amended to read: 126.32 Subd. 7. [DEPARTMENT OF EDUCATION.] (a) The department 126.33 must review and certify on-line learning providers. The on-line 126.34 learning courses and programs must be rigorous, aligned with 126.35 state academic standards, and contribute to grade progression in 126.36 a single subject. On-line learning providers must affirm to the 127.1 commissioner that on-line learning courses have equivalent 127.2 standards or instruction, curriculum, and assessment 127.3 requirements as other courses offered to enrolled students. The 127.4 on-line learning provider must also demonstrate expectations for 127.5 actual teacher contact time or other student-to-teacher 127.6 communication. Once an on-line learning provider is approved 127.7 under this paragraph, all of its on-line learning course 127.8 offerings are eligible for payment under this section unless a 127.9 course is successfully challenged by an enrolling district or 127.10 the department under paragraph (b). 127.11 (b) An enrolling district may challenge the validity of a 127.12 course offered by an on-line learning provider. The department 127.13 must review such challenges based on the certification 127.14 procedures under paragraph (a). The department may initiate its 127.15 own review of the validity of an on-line learning course offered 127.16 by an on-line learning provider. 127.17 (c) The department may collect a fee not to exceed $250 for 127.18 certifying on-line learning providers or $50 per course for 127.19 reviewing a challenge by an enrolling district. The fee must be 127.20 deposited in the state general fund. 127.21 (d) The department must develop, publish, and maintain a 127.22 list of approved on-line learning providers and on-line learning 127.23 courses and programs that it has reviewed and certified. 127.24 [EFFECTIVE DATE.] This section is effective retroactive 127.25 from July 1, 2003. 127.26 Sec. 5. Minnesota Statutes 2003 Supplement, section 127.27 124D.11, subdivision 1, is amended to read: 127.28 Subdivision 1. [GENERAL EDUCATION REVENUE.] (a) General 127.29 education revenue must be paid to a charter school as though it 127.30 were a district. The general education revenue for each 127.31 adjusted marginal cost pupil unit is the state average general 127.32 education revenue per pupil unit, plus the referendum 127.33 equalization aid allowance in the pupil's district of residence, 127.34 minus an amount equal to the product of the formula allowance 127.35 according to section 126C.10, subdivision 2, times .0485, 127.36 calculated without basic skills revenue, extended time revenue, 128.1 transition revenue, and transportation sparsity revenue, plus 128.2 basic skills revenue and transition revenue as though the school 128.3 were a school district. The general education revenue for each 128.4 extended time marginal cost pupil unit equals $4,378. 128.5 (b) Notwithstanding paragraph (a), for charter schools in 128.6 the first year of operation, general education revenue shall be 128.7 computed using the number of adjusted pupil units in the current 128.8 fiscal year. 128.9 Sec. 6. Minnesota Statutes 2003 Supplement, section 128.10 124D.11, subdivision 2, is amended to read: 128.11 Subd. 2. [TRANSPORTATION REVENUE.] Transportation revenue 128.12 must be paid to a charter school that provides transportation 128.13 services according to section 124D.10, subdivision 16, according 128.14 to this subdivision. Transportation aid shall equal 128.15 transportation revenue. 128.16 In addition to the revenue under subdivision 1, a charter 128.17 school providing transportation services must receive (1) 128.18 general education aid for each adjusted marginal cost pupil unit 128.19 equal to the sum of an amount equal to the product of the 128.20 formula allowance according to section 126C.10, subdivision 2, 128.21 times .0485, plus the transportation sparsity allowance for the 128.22 school district in which the charter school is located and (2) 128.23 general education aid for each extended time marginal cost pupil 128.24 unit equal to the product of $223 times the school's extended 128.25 time marginal cost pupil units. 128.26 Sec. 7. Minnesota Statutes 2002, section 124D.68, 128.27 subdivision 9, is amended to read: 128.28 Subd. 9. [ENROLLMENT VERIFICATION.] (a) For a pupil 128.29 attending an eligible program full time under subdivision 3, 128.30 paragraph (d), the department must pay 90 percent of the 128.31 district's average general education revenue less basic skills 128.32 revenue to the eligible program and ten percent of the 128.33 district's average general education revenue less basic skills 128.34 revenue to the contracting district within 30 days after the 128.35 eligible program verifies enrollment using the form provided by 128.36 the department. For a pupil attending an eligible program part 129.1 time, revenue, excluding compensatory revenue, shall be reduced 129.2 proportionately, according to the amount of time the pupil 129.3 attends the program, and the payments to the eligible program 129.4 and the contracting district shall be reduced accordingly. A 129.5 pupil for whom payment is made according to this section may not 129.6 be counted by any district for any purpose other than 129.7 computation of general education revenue. If payment is made 129.8 for a pupil under this subdivision, a district shall not 129.9 reimburse a program under section 124D.69 for the same 129.10 pupil. The basic skills revenueshall be paidgenerated by 129.11 pupils attending the eligible program according to section 129.12 126C.10, subdivision 4, shall be paid to the eligible program. 129.13 (b) The department must pay up to 100 percent of the 129.14 revenue to the eligible program if there is an agreement to that 129.15 effect between the school district and the eligible program. 129.16 (c) Notwithstanding paragraphs (a) and (b), for an eligible 129.17 program that provides chemical treatment services to students, 129.18 the department must pay 100 percent of the revenue to the 129.19 eligible program. 129.20 Sec. 8. Minnesota Statutes 2002, section 124D.69, 129.21 subdivision 1, is amended to read: 129.22 Subdivision 1. [AID.] If a pupil enrolls in an alternative 129.23 program, eligible under section 124D.68, subdivision 3, 129.24 paragraph (d), or subdivision 4, operated by a private 129.25 organization that has contracted with a school district to 129.26 provide educational services for eligible pupils under section 129.27 124D.68, subdivision 2, the district contracting with the 129.28 private organization must reimburse the provider an amount equal 129.29 to the sum of (1) at least 95 percent of the district's average 129.30 general education less basic skills revenue per pupil unit times 129.31 the number of pupil units for pupils attending the program.and 129.32 (2) the amount of basic skills revenueshall be paidgenerated 129.33 by pupils attending the program according to section 126C.10, 129.34 subdivision 4.Compensatory revenue must be allocated according129.35to section 126C.15, subdivision 2.For a pupil attending the 129.36 program part time, the revenue paid to the program, excluding 130.1 compensatory revenue, must be reduced proportionately, according 130.2 to the amount of time the pupil attends the program, and revenue 130.3 paid to the district shall be reduced accordingly. Pupils for 130.4 whom a district provides reimbursement may not be counted by the 130.5 district for any purpose other than computation of general 130.6 education revenue. If payment is made to a district or program 130.7 for a pupil under this section, the department must not make a 130.8 payment for the same pupil under section 124D.68, subdivision 9. 130.9 Sec. 9. Minnesota Statutes 2002, section 126C.21, 130.10 subdivision 4, is amended to read: 130.11 Subd. 4. [TACONITE DEDUCTIONS.](1) Notwithstanding any130.12provisions of any other law to the contrary, the adjusted net130.13tax capacity used in calculating general education aid may130.14include only that property that is currently taxable in the130.15district.130.16(2)For districts thatreceived paymentshave revenue under 130.17 sections 298.018; 298.225; 298.24 to 298.28, excluding 298.26, 130.18 and 298.28, subdivision 4, paragraph (d); 298.34 to 298.39; 130.19 298.391 to 298.396; and 298.405,; 477A.15; or any law imposing a 130.20 tax upon severed mineral values;or recognized revenue under130.21section 477A.15;the general education aid must be reduced in 130.22 the final adjustment payment by (i) thedifference between the130.23dollaramount of thepayments receivedrevenue recognized 130.24 pursuant to those sections, or revenue recognized under section130.25477A.15 infor the fiscal year to which the final adjustment is 130.26 attributableand, less (ii) the amount that was calculated, 130.27 pursuant to section 126C.48, subdivision 8, as a reduction of 130.28 the levy attributable to the fiscal year to which the final 130.29 adjustment is attributable. If the final adjustment of a 130.30 district's general education aid for a fiscal year is a negative 130.31 amount because of thisclausesubdivision, the next fiscal 130.32 year's general education aid to that district must be reduced by 130.33 this negative amount in the following manner: there must be 130.34 withheld from each scheduled general education aid payment due 130.35 the district in such fiscal year, 15 percent of the total 130.36 negative amount, until the total negative amount has been 131.1 withheld. The amount reduced from general education aid 131.2 pursuant to thisclausesubdivision mustbe recognized asreduce 131.3 revenue in the fiscal year to which the final adjustment payment 131.4 is attributable. 131.5 [EFFECTIVE DATE.] This section is effective retroactive 131.6 from July 1, 2003, for school district revenue for fiscal year 131.7 2004. 131.8 Sec. 10. Minnesota Statutes 2002, section 126C.48, 131.9 subdivision 8, is amended to read: 131.10 Subd. 8. [TACONITE PAYMENT AND OTHER REDUCTIONS.] (1) 131.11 Reductions in levies pursuant to sections 126C.48, subdivision 131.12 1, and 273.138, must be made prior to the reductions in clause 131.13 (2). 131.14 (2) Notwithstanding any other law to the contrary, 131.15 districtswhich received paymentsthat have revenue pursuant to 131.16 sections 298.018; 298.225; and 298.24 to 298.28, except an 131.17 amount distributed undersectionsections 298.26; 298.28, 131.18 subdivision 4, paragraph (c), clause (ii), and paragraph (d); 131.19 298.34 to 298.39; 298.391 to 298.396; 298.405; 477A.15; and any 131.20 law imposing a tax upon severed mineral values; or recognized131.21revenue under section 477A.15 must not include a portion of131.22these aids in their permissible levies pursuant to those131.23sections, but insteadmust reduce thepermissiblelevies 131.24 authorized by this chapter and chapters 120B, 122A, 123A, 123B, 131.25 124A, 124D, 125A, and 127A bythe greater of the following:95 131.26 percent of the previous year's revenue specified under this 131.27 clause. 131.28(a) an amount equal to 50 percent of the total dollar131.29amount of the payments received pursuant to those sections or131.30revenue recognized under section 477A.15 in the previous fiscal131.31year; or131.32(b) an amount equal to the total dollar amount of the131.33payments received pursuant to those sections or revenue131.34recognized under section 477A.15 in the previous fiscal year131.35less the product of the same dollar amount of payments or131.36revenue times five percent.132.1For levy year 2002 only, 77 percent of the amounts132.2distributed under section 298.225 and 298.28, and 100 percent of132.3the amounts distributed under sections 298.018; 298.34 to132.4298.39; 298.391 to 298.396; 298.405; and any law imposing a tax132.5upon severed mineral values, or recognized revenue under section132.6477A.15, shall be used for purposes of the calculations under132.7this paragraph. For levy year 2003 only, the levy reductions132.8under this subdivision must be calculated as if section 298.28,132.9subdivision 4, paragraph (f), did not apply for the 2003132.10distribution.132.11 (3) The amount of any voter approved referendum, facilities 132.12 down payment, and debt levies shall not be reduced by more than 132.13 50 percent under this subdivision. In administering this 132.14 paragraph, the commissioner shall first reduce the nonvoter 132.15 approved levies of a district; then, if any payments, severed 132.16 mineral value tax revenue or recognized revenue under paragraph 132.17 (2) remains, the commissioner shall reduce any voter approved 132.18 referendum levies authorized under section 126C.17; then, if any 132.19 payments, severed mineral value tax revenue or recognized 132.20 revenue under paragraph (2) remains, the commissioner shall 132.21 reduce any voter approved facilities down payment levies 132.22 authorized under section 123B.63 and then, if any payments, 132.23 severed mineral value tax revenue or recognized revenue under 132.24 paragraph (2) remains, the commissioner shall reduce any voter 132.25 approved debt levies. 132.26 (4) Before computing the reduction pursuant to this 132.27 subdivision of the health and safety levy authorized by sections 132.28 123B.57 and 126C.40, subdivision 5, the commissioner shall 132.29 ascertain from each affected school district the amount it 132.30 proposes to levy under each section or subdivision. The 132.31 reduction shall be computed on the basis of the amount so 132.32 ascertained. 132.33 (5) To the extent the levy reduction calculated under 132.34 paragraph (2) exceeds the limitation in paragraph (3), an amount 132.35 equal to the excess must be distributed from the school 132.36 district's distribution under sections 298.225, 298.28, and 133.1 477A.15 in the following year to the cities and townships within 133.2 the school district in the proportion that their taxable net tax 133.3 capacity within the school district bears to the taxable net tax 133.4 capacity of the school district for property taxes payable in 133.5 the year prior to distribution. No city or township shall 133.6 receive a distribution greater than its levy for taxes payable 133.7 in the year prior to distribution. The commissioner of revenue 133.8 shall certify the distributions of cities and towns under this 133.9 paragraph to the county auditor by September 30 of the year 133.10 preceding distribution. The county auditor shall reduce the 133.11 proposed and final levies of cities and towns receiving 133.12 distributions by the amount of their distribution. 133.13 Distributions to the cities and towns shall be made at the times 133.14 provided under section 298.27. 133.15 [EFFECTIVE DATE.] This section is effective for taxes 133.16 payable in 2005. 133.17 Sec. 11. Minnesota Statutes 2003 Supplement, section 133.18 127A.47, subdivision 7, is amended to read: 133.19 Subd. 7. [ALTERNATIVE ATTENDANCE PROGRAMS.] The general 133.20 education aid for districts must be adjusted for each pupil 133.21 attending a nonresident district under sections 123A.05 to 133.22 123A.08, 124D.03, 124D.06, 124D.08, and 124D.68. The 133.23 adjustments must be made according to this subdivision. 133.24 (a) General education aid paid to a resident district must 133.25 be reduced by an amount equal to the referendum equalization aid 133.26 attributable to the pupil in the resident district. 133.27 (b) General education aid paid to a district serving a 133.28 pupil in programs listed in this subdivision must be increased 133.29 by an amount equal to the referendum equalization aid 133.30 attributable to the pupil in the nonresident district. 133.31 (c) If the amount of the reduction to be made from the 133.32 general education aid of the resident district is greater than 133.33 the amount of general education aid otherwise due the district, 133.34 the excess reduction must be made from other state aids due the 133.35 district. 133.36 (d) The district of residence must pay tuition to a 134.1 district or an area learning center, operated according to 134.2 paragraph (e), providing special instruction and services to a 134.3 pupil with a disability, as defined in section 125A.02, or a 134.4 pupil, as defined in section 125A.51, who is enrolled in a 134.5 program listed in this subdivision. The tuition must be equal 134.6 to (1) the actual cost of providing special instruction and 134.7 services to the pupil, including a proportionate amount for debt 134.8 service and for capital expenditure facilities and equipment, 134.9 and debt service but not including any amount for 134.10 transportation, minus (2) the amount of general education 134.11 revenue and special education aid but not including any amount 134.12 for transportation, attributable to that pupil, that is received 134.13 by the district providing special instruction and services. 134.14 (e) An area learning center operated by a service 134.15 cooperative, intermediate district, education district, or a 134.16 joint powers cooperative may elect through the action of the 134.17 constituent boards to charge the resident district tuition for 134.18 pupils rather than to have the general education revenue paid to 134.19 a fiscal agent school district. Except as provided in paragraph 134.20 (d), the district of residence must pay tuition equal to at 134.21 least 90 percent of the district average general education 134.22 revenue per pupil unit minus an amount equal to the product of 134.23 the formula allowance according to section 126C.10, subdivision 134.24 2, times .0485, calculated without basic skills revenue and 134.25 transportation sparsity revenue, times the number of pupil units 134.26 for pupils attending the area learning center, plus the amount 134.27 ofcompensatorybasic skills revenue generated by pupils 134.28 attending the area learning center. 134.29 Sec. 12. Minnesota Statutes 2003 Supplement, section 134.30 127A.47, subdivision 8, is amended to read: 134.31 Subd. 8. [CHARTER SCHOOLS.] (a) The general education aid 134.32 for districts must be adjusted for each pupil attending a 134.33 charter school under section 124D.10. The adjustments must be 134.34 made according to this subdivision. 134.35 (b) General education aid paid to a district in which a 134.36 charter school not providing transportation according to section 135.1 124D.10, subdivision 16, is located must be increased by an 135.2 amount equal to the sum of: 135.3 (1) the product of:(1)(i) the sum of an amount equal to 135.4 the product of the formula allowance according to section 135.5 126C.10, subdivision 2, times .0485, plus the transportation 135.6 sparsity allowance for the district; times(2)(ii) the adjusted 135.7 marginal cost pupil units attributable to the pupil, plus 135.8 (2) the product of $223 times the extended time marginal 135.9 cost pupil units attributable to the pupil. 135.10 Sec. 13. [FUND TRANSFER.] 135.11 Subdivision 1. [FOLEY.] Notwithstanding Minnesota 135.12 Statutes, section 123B.79 or 123B.80, on June 30, 2004, 135.13 Independent School District No. 51, Foley, may permanently 135.14 transfer up to $190,000 from its reserved operating capital 135.15 account in its general fund to the undesignated general fund 135.16 balance. 135.17 Subd. 2. [CHOKIO-ALBERTA.] Notwithstanding Minnesota 135.18 Statutes, section 123B.79 or 123B.80, on June 30, 2004, 135.19 Independent School District No. 771, Chokio-Alberta, may 135.20 permanently transfer up to $150,000 from its reserved operating 135.21 capital account in its general fund to the undesignated fund 135.22 balance. 135.23 Subd. 3. [KIMBALL.] Notwithstanding Minnesota Statutes, 135.24 section 123B.79 or 123B.80, on June 30, 2004, Independent School 135.25 District No. 739, Kimball, may permanently transfer up to 135.26 $150,000 from its reserved bus purchase account, or any 135.27 successor account, to its undesignated general fund balance. 135.28 Subd. 4. [MCLEOD WEST.] Notwithstanding Minnesota 135.29 Statutes, section 123B.79 or 123B.80, on June 30, 2004, 135.30 Independent School District No. 2887, McLeod West, may 135.31 permanently transfer up to $200,000 from its reserved operating 135.32 capital account in its general fund to the undesignated fund 135.33 balance. 135.34 Subd. 5. [NORTHEAST METRO.] Notwithstanding Minnesota 135.35 Statutes, sections 123B.79; 123B.80; and 475.61, subdivision 4, 135.36 on June 30, 2004, Intermediate School District No. 916, 136.1 Northeast Metro, may permanently transfer up to $240,000 from 136.2 its debt redemption fund to its capital account in its general 136.3 fund without making a levy reduction. 136.4 Subd. 6. [BUTTERFIELD.] Notwithstanding Minnesota 136.5 Statutes, section 123B.79 or 123B.80, for calendar years 2004 136.6 through 2006, on June 30 of each year, Independent School 136.7 District No. 836, Butterfield, may permanently transfer up to 136.8 $50,000 from its reserved operating capital account in its 136.9 general fund to its undesignated general fund balance and 136.10 $60,000 from its reserved bus purchase account in its general 136.11 fund to its undesignated general fund balance. The total amount 136.12 transferred for the three-year period must not total more than 136.13 $50,000 from the reserved operating capital account and $60,000 136.14 from the reserved bus purchase account. 136.15 [EFFECTIVE DATE.] This section is effective the day 136.16 following final enactment. 136.17 Sec. 14. [FORECASTING THE BASE BUDGET FOR EDUCATION.] 136.18 Notwithstanding Minnesota Statutes, section 16A.11, 136.19 subdivision 3, paragraph (b), the appropriation base for fiscal 136.20 years 2006 and 2007 for each forecast program with an 136.21 appropriation in this act or in Laws 2003, First Special Session 136.22 chapter 9, is the forecast appropriation level needed to fully 136.23 fund that program. 136.24 [EFFECTIVE DATE.] This section is effective the day 136.25 following final enactment. 136.26 ARTICLE 6 136.27 LIBRARIES 136.28 Section 1. Minnesota Statutes 2002, section 125B.15, is 136.29 amended to read: 136.30 125B.15 [INTERNET ACCESS FOR STUDENTS.] 136.31 (a) Recognizing the difference between school libraries, 136.32 school computer labs, and school media centers, which serve 136.33 unique educational purposes, and public libraries, which are 136.34 designed for public inquiry, all computers at a school site with 136.35 access to the Internet available for student use must be 136.36 equippedto restrict, including by use of availablewith 137.1 software filtering or blocking technologyor other effective137.2methods, alldesigned to restrict student access to material 137.3 that is reasonably believed to be obscene or child pornography 137.4 or material harmful to minors under federal or state law. 137.5 (b)A school site is not required to purchase filtering137.6technology if the school site would incur more than incidental137.7expense in making the purchase.137.8(c)A school district receiving technology revenue under 137.9 section 125B.25 must prohibit,includingthrough use of 137.10availablesoftware filtering or blocking technologyor other137.11effective methods, adult access to material that under federal 137.12 or state law is reasonably believed to be obscene or child 137.13 pornography. At the request of an adult, the district may 137.14 unblock filtered sites for bona fide research or other lawful 137.15 purpose. 137.16(d)(c) A school district, its agents or employees, are 137.17 immune from liability for failure to comply with this section if 137.18 they have made a good faith effort to comply with the 137.19 requirements of this section. 137.20(e)(d) "School site" means an education site as defined in 137.21 section 123B.04, subdivision 1, or charter school under section 137.22 124D.10. 137.23 (e) All state funds available to a school site for its 137.24 school library, school computer lab, and school media center 137.25 shall be withheld from the school site until all computers with 137.26 Internet access available for student use at the school site are 137.27 equipped with software filtering or blocking technology designed 137.28 to restrict students' access to material that is reasonably 137.29 believed to be obscene, child pornography, or material harmful 137.30 to minors under state or federal law. A school district must 137.31 formally adopt an Internet safety policy consistent with this 137.32 section and other applicable law. 137.33 (f) To ensure that state funds are not withheld under 137.34 paragraph (e), a school district must send an electronic notice 137.35 to the department indicating those school sites within the 137.36 district that have equipped their computers with software 138.1 filtering or blocking technology, consistent with this section. 138.2 A district must immediately transmit to the department any 138.3 additional information related to school sites' compliance with 138.4 this section. 138.5 [EFFECTIVE DATE.] This section is effective January 1, 2005. 138.6 Sec. 2. Minnesota Statutes 2002, section 134.31, is 138.7 amended by adding a subdivision to read: 138.8 Subd. 6. [ADVISORY COMMITTEE.] The commissioner shall 138.9 appoint an advisory committee of five members to advise the 138.10 staff of the Minnesota Library for the Blind and Physically 138.11 Handicapped on long-range planning and library services. 138.12 Members shall be people who use the library. Section 15.059 138.13 governs this committee except that the committee expires June 138.14 30, 2007. 138.15 [EFFECTIVE DATE.] This section is effective June 30, 2004. 138.16 Sec. 3. Minnesota Statutes 2002, section 134.50, is 138.17 amended to read: 138.18 134.50 [INTERNET ACCESS; LIBRARIES.] 138.19 (a) Recognizing the difference between public libraries, 138.20 which are designed for public inquiry, and school libraries, 138.21 school computer labs, and school media centers, which serve 138.22 unique educational purposes, all public library computers with 138.23 access to the Internet available for use by children under the 138.24 age of1718 must be equippedto restrict, including by use of138.25availablewith software filtering or blocking technologyor138.26other effective methods, alldesigned to restrict access by 138.27 children to material that is reasonably believed to be obscene 138.28 or child pornography or material harmful to minors under federal 138.29 or state law. 138.30 (b)A public library is not required to purchase filtering138.31technology if the public library would incur more than138.32incidental expense in making the purchase.138.33(c)A public library that receives state money must 138.34 prohibit,includingthrough the use ofavailablesoftware 138.35 filtering or blocking technologyor other effective methods, 138.36 adult access to material that under federal or state law is 139.1 reasonably believed to be obscene or child pornography. At the 139.2 request of an adult conducting bona fide research or pursuing 139.3 another lawful purpose, a public library must unblock filtered 139.4 sites without significant delay and without requiring the adult 139.5 to explain the request. A public library may remove a person 139.6 from the library if the person gains access or attempts to gain 139.7 access to materials prohibited under this sectionby139.8intentionally bypassing the filtering technology or other method139.9used by the library. 139.10(d)(c) A public library, its agents or employees, are 139.11 immune from liability for failure to comply with this section if 139.12 they have made a good faith effort to comply with the 139.13 requirements of this section. 139.14(e)(d) This section does not apply to the libraries of 139.15 postsecondary institutions. 139.16 (e) All state funds available to a public library shall be 139.17 withheld from the public library until all computers with 139.18 Internet access available for use by children under age 18 are 139.19 equipped with software filtering or blocking technology designed 139.20 to restrict children's access to material that is reasonably 139.21 believed to be obscene, child pornography, or material harmful 139.22 to minors under federal or state law. A public library must 139.23 formally adopt an Internet safety policy consistent with this 139.24 section and other applicable law. 139.25 (f) To ensure that state funds are not withheld under 139.26 paragraph (e), a public library system must send an electronic 139.27 notice to the education department indicating that the public 139.28 libraries within the system have equipped their computers with 139.29 software filtering or blocking technology, consistent with this 139.30 section. A public library system must immediately transmit to 139.31 the department any additional information related to public 139.32 libraries' compliance with this section. 139.33 [EFFECTIVE DATE.] This section is effective January 1, 2005. 139.34 Sec. 4. Laws 2003, First Special Session chapter 9, 139.35 article 6, section 4, is amended to read: 139.36 Sec. 4. [APPROPRIATIONS.] 140.1 Subdivision 1. [DEPARTMENT OF EDUCATION.] The sums 140.2 indicated in this section are appropriated from the general fund 140.3 to the department of education for the fiscal years designated. 140.4 Subd. 2. [BASIC SYSTEM SUPPORT.] For basic system support 140.5 grants under Minnesota Statutes, section 134.355: 140.6$8,072,000$8,312,000 ..... 2004 140.7 $8,570,000 ..... 2005 140.8 The 2004 appropriation includes $1,456,000 for 2003 and 140.9$6,616,000$6,856,000 for 2004. 140.10 The 2005 appropriation includes$1,654,000$1,714,000 for 140.11 2004 and$6,916,000$6,856,000 for 2005. 140.12 Subd. 3. [REGIONAL LIBRARY TELECOMMUNICATIONS AID.] For 140.13 regional library telecommunications aid under Minnesota 140.14 Statutes, section 134.355: 140.15$1,200,000$960,000 ..... 2004 140.16 $1,200,000 ..... 2005 140.17 The 2004 appropriation includes $960,000 for 2004. 140.18 The 2005 appropriation includes $240,000 for 2004 and 140.19 $960,000 for 2005. 140.20 [EFFECTIVE DATE.] This section is effective the day 140.21 following final enactment. 140.22 ARTICLE 7 140.23 EARLY CHILDHOOD PROGRAMS 140.24 Section 1. Minnesota Statutes 2002, section 124D.15, 140.25 subdivision 1, is amended to read: 140.26 Subdivision 1. [ESTABLISHMENT; PURPOSE.] A district or a 140.27 group of districts may establish a school readiness program 140.28 foreligiblechildren ages 3-1/2 years old to kindergarten 140.29 entrance. The purpose of a school readiness program is 140.30 toprovide all eligible children adequate opportunities to140.31participate in child development programs that enable the140.32children to enter school with the necessary skills and behavior140.33and family stability and support to progress and140.34flourishprepare children to enter kindergarten. 140.35 [EFFECTIVE DATE.] This section is effective for revenue for 140.36 fiscal year 2005. 141.1 Sec. 2. Minnesota Statutes 2002, section 124D.15, 141.2 subdivision 3, is amended to read: 141.3 Subd. 3. [PROGRAMELIGIBILITYREQUIREMENTS.] A school 141.4 readiness program mustinclude the following: 141.5 (1)a comprehensive plan to anticipate and meet the needs141.6of participating families by coordinating existing social141.7services programs and by fostering collaboration among agencies141.8or other community-based organizations and programs that provide141.9a full range of flexible, family-focused services to families141.10with young childrenconduct a child development assessment on 141.11 each child to guide curriculum planning and promote school 141.12 readiness. This assessment must be conducted on each child at 141.13 entrance into the program and once prior to exit of the program; 141.14 (2)a development and learning component to help children141.15develop appropriate social, cognitive, and physical skills, and141.16emotional well-being;141.17(3) health referral services to address children's medical,141.18dental, mental health, and nutritional needsinvolve parents in 141.19 program planning and decision making; 141.20(4)(3)a nutrition component to meet children's daily141.21nutritional needscoordinate with relevant community-based 141.22 services; 141.23(5)(4)parents' involvement in meeting children's141.24educational, health, social service, and other needsarrange for 141.25 early childhood screening and appropriate referral; and 141.26(6)(5)community outreach to ensure participation by141.27families who represent the racial, cultural, and economic141.28diversity of the community;141.29(7) community-based staff and program resources, including141.30interpreters, that reflect the racial and ethnic characteristics141.31of the children participating in the program; and141.32(8) a literacy component to ensure that the literacy needs141.33of parents are addressed through referral to and cooperation141.34with adult basic education programs and other adult literacy141.35programsdemonstrate use of evidence-based curriculum. 141.36 [EFFECTIVE DATE.] This section is effective for the 142.1 2004-2005 school year. 142.2 Sec. 3. Minnesota Statutes 2002, section 124D.15, is 142.3 amended by adding a subdivision to read: 142.4 Subd. 3a. [APPLICATION AND REPORTING REQUIREMENTS.] (a) A 142.5 school readiness program must submit an annual plan to the 142.6 commissioner for approval. The plan must include evidence that 142.7 the program will meet the program requirements according to 142.8 subdivision 3. 142.9 (b) Programs receiving school readiness funds must submit 142.10 an annual report to the department before August 15 of the 142.11 following fiscal year as required by the department. 142.12 [EFFECTIVE DATE.] This section is effective the day 142.13 following final enactment. 142.14 Sec. 4. Minnesota Statutes 2002, section 124D.15, 142.15 subdivision 5, is amended to read: 142.16 Subd. 5. [SERVICES WITH NEW OR EXISTING PROVIDERS.] A 142.17 district is encouraged to contract with a public or nonprofit 142.18 organization to provide eligible children developmentally 142.19 appropriate services that meet the program requirements in 142.20 subdivision 3. In the alternative, a district may pay tuition 142.21 or fees to place an eligible child in an existing program. A 142.22 district may establish a new program where no existing, 142.23 reasonably accessible program meets the program requirements in 142.24 subdivision 3. Services may be provided in a site-based program 142.25 or in the home of the child or a combination of both. The 142.26 district may not restrict participation to district 142.27 residents. A copy of each contract must be submitted to the 142.28 commissioner with the annual plan. 142.29 [EFFECTIVE DATE.] This section is effective July 1, 2004. 142.30 Sec. 5. Minnesota Statutes 2002, section 124D.15, 142.31 subdivision 10, is amended to read: 142.32 Subd. 10. [SUPERVISION.] A program provided by a board 142.33 must be supervised by a licensed early childhood teacher, a 142.34 certified early childhood educator, or a licensed parent 142.35 educator.A program provided according to a contract between a142.36district and a nonprofit organization or another private143.1organization must be supervised and staffed according to the143.2terms of the contract.143.3 [EFFECTIVE DATE.] This section is effective July 1, 2004. 143.4 Sec. 6. Minnesota Statutes 2002, section 124D.15, 143.5 subdivision 12, is amended to read: 143.6 Subd. 12. [PROGRAM FEES.] A districtmaymust adopt a 143.7 sliding fee schedule based on a family's income but must waive a 143.8 fee for a participant unable to pay.The fees charged must be143.9designed to enable eligible children of all socioeconomic levels143.10to participate in the program.143.11 [EFFECTIVE DATE.] This section is effective for revenue for 143.12 fiscal year 2005. 143.13 Sec. 7. Minnesota Statutes 2002, section 124D.16, 143.14 subdivision 2, is amended to read: 143.15 Subd. 2. [AMOUNT OF AID.] (a) A district is eligible to 143.16 receive school readiness aid if the program plan required by 143.17subdivision 1section 124D.15, subdivision 3a, has been approved 143.18 by the commissioner. 143.19 (b) For fiscal year 2002 and thereafter, a district must 143.20 receive school readiness aid equal to: 143.21 (1) the number of eligible four-year-old children in the 143.22 district on October 1 for the previous school year times the 143.23 ratio of 50 percent of the total school readiness aid for that 143.24 year to the total number of eligible four-year-old children 143.25 reported to the commissioner for the previous school year; plus 143.26 (2) the number of pupils enrolled in the school district 143.27 from families eligible for the free or reduced school lunch 143.28 program for the second previous school year times the ratio of 143.29 50 percent of the total school readiness aid for that year to 143.30 the total number of pupils in the state from families eligible 143.31 for the free or reduced school lunch program for the second 143.32 previous school year. 143.33 [EFFECTIVE DATE.] This section is effective for revenue for 143.34 fiscal year 2005. 143.35 Sec. 8. Laws 2003, First Special Session chapter 9, 143.36 article 7, section 11, subdivision 2, is amended to read: 144.1 Subd. 2. [SCHOOL READINESS.] For revenue for school 144.2 readiness programs under Minnesota Statutes, sections 124D.15 144.3 and 124D.16: 144.4 $ 9,536,000 ..... 2004 144.5$ 9,258,000$ 10,298,000 ..... 2005 144.6 The 2004 appropriation includes $1,605,000 for 2003 and 144.7 $7,931,000 for 2004. 144.8 The 2005 appropriation includes $1,982,000 for 2004 and 144.9$7,276,000$8,316,000 for 2005. 144.10 The base budget entitlement for this program is $9,095,000 144.11 for fiscal years 2006 and later. 144.12 Sec. 9. [REPEALER.] 144.13 Minnesota Statutes 2002, sections 124D.15, subdivisions 2, 144.14 4, 6, 8, 9, 11, and 13; and 124D.16, subdivisions 1 and 4; and 144.15 Minnesota Statutes 2003 Supplement, section 124D.15, subdivision 144.16 7, are repealed. 144.17 [EFFECTIVE DATE.] This section is effective July 1, 2004. 144.18 ARTICLE 8 144.19 PREVENTION 144.20 Section 1. Minnesota Statutes 2002, section 124D.20, is 144.21 amended by adding a subdivision to read: 144.22 Subd. 6a. [COMMUNITY EDUCATION FORMULA RESTORATION 144.23 LEVY.] In addition to the levy authorized under subdivision 5, a 144.24 school district may annually levy an amount equal to $.72 times 144.25 the greater of 1,335 or the population of the district. 144.26 [EFFECTIVE DATE.] This section is effective for taxes 144.27 payable in 2005. 144.28 Sec. 2. [EARLY RECOGNITION.] 144.29 For taxes payable in 2005 only, a school district must 144.30 recognize 50 percent of the revenue received under section 1 in 144.31 fiscal year 2005 and 50 percent of the revenue received under 144.32 section 1 in fiscal year 2006. 144.33 ARTICLE 9 144.34 SELF-SUFFICIENCY AND LIFELONG LEARNING 144.35 Section 1. Minnesota Statutes 2003 Supplement, section 144.36 119A.46, subdivision 1, is amended to read: 145.1 Subdivision 1. [DEFINITIONS.] (a) The definitions in 145.2 section 144.9501 and in this subdivision apply to this section. 145.3 (b) "Eligible organization" means a lead contractor, city, 145.4 board of health, community health department, community action 145.5 agency as defined in section 119A.374, or community development 145.6 corporation. 145.7 (c) "Commissioner" means the commissioner ofeducation145.8 health, or the commissioner of the Minnesota Housing Finance 145.9 Agency as authorized by section 462A.05, subdivision 15c. 145.10 [EFFECTIVE DATE.] This section is effective July 1, 2004. 145.11 Sec. 2. Minnesota Statutes 2002, section 119A.46, 145.12 subdivision 2, is amended to read: 145.13 Subd. 2. [GRANTS; ADMINISTRATION.] Within the limits of 145.14 the available appropriation, the commissioner must develop a 145.15 swab team services program which may make demonstration and 145.16 training grants to eligible organizations to train workers to 145.17 provide swab team services and swab team services for 145.18 residential property. Grants may be awarded to nonprofit 145.19 organizations to provide technical assistance and training to 145.20 ensure quality and consistency within the statewide program. 145.21 Grants must be awarded to help ensure full-time employment to 145.22 workers providing swab team services and must be awarded for a 145.23 two-year period. 145.24 Grants awarded under this section must be made in 145.25 consultation with thecommissionerscommissioner ofthe145.26Department ofhealth and the Housing Finance Agency, and 145.27 representatives of neighborhood groups from areas at high risk 145.28 for toxic lead exposure, a labor organization, the lead 145.29 coalition, community action agencies, and the legal aid 145.30 society. The consulting team must review grant applications and 145.31 recommend awards to eligible organizations that meet 145.32 requirements for receiving a grant under this section. 145.33 [EFFECTIVE DATE.] This section is effective July 1, 2004. 145.34 Sec. 3. Minnesota Statutes 2002, section 119A.46, 145.35 subdivision 3, is amended to read: 145.36 Subd. 3. [APPLICANTS.] (a) Interested eligible 146.1 organizations may apply to the commissioner for grants under 146.2 this section. Two or more eligible organizations may jointly 146.3 apply for a grant. Priority shall be given to community action 146.4 agencies in greater Minnesota and to either community action 146.5 agencies or neighborhood based nonprofit organizations in cities 146.6 of the first class. Of the total annual appropriation, 12.5 146.7 percent may be used for administrative purposes. The 146.8 commissioner may deviate from this percentage if a grantee can 146.9 justify the need for a larger administrative allowance. Of this 146.10 amount, up to five percent may be used by the commissioner for 146.11 state administrative purposes. Applications must provide 146.12 information requested by the commissioner, including at least 146.13 the information required to assess the factors listed in 146.14 paragraph (d). 146.15 (b) The commissioner mustcoordinate with the commissioner146.16of health who mustconsult with boards of health to provide swab 146.17 team services for purposes of secondary prevention. The 146.18 priority for swab teams created by grants to eligible 146.19 organizations under this section must be work assigned by the 146.20 commissioner of health, or by a board of health if so designated 146.21 by the commissioner of health, to provide secondary prevention 146.22 swab team services to fulfill the requirements of section 146.23 144.9504, subdivision 6, in response to a lead order. Swab 146.24 teams assigned work under this section by the commissioner, that 146.25 are not engaged daily in fulfilling the requirements of section 146.26 144.9504, subdivision 6, must deliver swab team services in 146.27 response to elevated blood lead levels as defined in section 146.28 144.9501, subdivision 9, where lead orders were not issued, and 146.29 for purposes of primary prevention in census tracts known to be 146.30 in areas at high risk for toxic lead exposure as described in 146.31 section 144.9503, subdivision 2. 146.32 (c) Any additional money must be used for grants to 146.33 establish swab teams for primary prevention under section 146.34 144.9503, in census tracts in areas at high risk for toxic lead 146.35 exposure as determined under section 144.9503, subdivision 2. 146.36 (d) In evaluating grant applications, the commissioner must 147.1 consider the following criteria: 147.2 (1) the use of lead contractors and lead workers for 147.3 residential swab team services; 147.4 (2) the participation of neighborhood groups and 147.5 individuals, as swab team workers, in areas at high risk for 147.6 toxic lead exposure; 147.7 (3) plans for the provision of swab team services for 147.8 primary and secondary prevention as required under subdivision 147.9 4; 147.10 (4) plans for supervision, training, career development, 147.11 and postprogram placement of swab team members; 147.12 (5) plans for resident and property owner education on lead 147.13 safety; 147.14 (6) plans for distributing cleaning supplies to area 147.15 residents and educating residents and property owners on 147.16 cleaning techniques; 147.17 (7) sources of other funding and cost estimates for 147.18 training, lead inspections, swab team services, equipment, 147.19 monitoring, testing, and administration; 147.20 (8) measures of program effectiveness; 147.21 (9) coordination of program activities with other federal, 147.22 state, and local public health, job training, apprenticeship, 147.23 and housing renovation programs including programs under 147.24 sections 268.86 to 268.881; and 147.25 (10) prior experience in providing swab team services. 147.26 [EFFECTIVE DATE.] This section is effective July 1, 2004. 147.27 Sec. 4. Minnesota Statutes 2002, section 119A.46, 147.28 subdivision 8, is amended to read: 147.29 Subd. 8. [TESTING AND EVALUATION.] (a) Testing of the 147.30 environment is not necessary by swab teams whose work is 147.31 assigned by the commissioner of health or a designated board of 147.32 health under section 144.9504. The commissioner of health or 147.33 designated board of health must share the analytical testing 147.34 data collected on each residence for purposes of secondary 147.35 prevention under section 144.9504 with the swab team workers in 147.36 order to provide constructive feedback on their work and to the 148.1 commissioner for the purposes set forth in paragraph (c). 148.2 (b) For purposes of primary prevention evaluation, the 148.3 following samples must be collected: pretesting and posttesting 148.4 of one noncarpeted floor dust lead sample and a notation of the 148.5 extent and location of bare soil and of deteriorated lead-based 148.6 paint. The analytical testing data collected on each residence 148.7 for purposes of primary prevention under section 144.9503 must 148.8 be shared with the swab team workers in order to provide 148.9 constructive feedback on their work and to the commissioner for 148.10 the purposes set forth in paragraph (c). 148.11 (c) The commissioner of health must establish a programin148.12cooperation with the commissionerto collect appropriate data as 148.13 required under paragraphs (a) and (b), in order to conduct an 148.14 ongoing evaluation of swab team services for primary and 148.15 secondary prevention. Within the limits of available 148.16 appropriations, the commissioner of health must conductor148.17contract with the commissioner,on up to 1,000 residences which 148.18 have received primary or secondary prevention swab team 148.19 services, a postremediation evaluation, on at least a quarterly 148.20 basis for a period of at least two years for each residence. 148.21 The evaluation must note the condition of the paint within the 148.22 residence, the extent of bare soil on the grounds, and collect 148.23 and analyze one noncarpeted floor dust lead sample. The data 148.24 collected must be evaluated to determine the efficacy of 148.25 providing swab team services as a method of reducing lead 148.26 exposure in young children. In evaluating this data, the 148.27 commissioner of health must consider city size, community 148.28 location, historic traffic flow, soil lead level of the property 148.29 by area or census tract, distance to industrial point sources 148.30 that emit lead, season of the year, age of the housing, age and 148.31 number of children living at the residence, the presence of pets 148.32 that move in and out of the residence, and other relevant 148.33 factors as the commissioner of health may determine. This 148.34 evaluation of the swab team program may be paid from amounts 148.35 appropriated to the Department of Economic Security for 148.36 providing swab team services. 149.1 [EFFECTIVE DATE.] This section is effective July 1, 2004. 149.2 Sec. 5. Minnesota Statutes 2003 Supplement, section 149.3 124D.531, subdivision 1, is amended to read: 149.4 Subdivision 1. [STATE TOTAL ADULT BASIC EDUCATION AID.] 149.5 (a) The state total adult basic education aid for fiscal year 149.6 2004 equals $34,388,000. The state total adult basic education 149.7 aid for fiscal year 2005 and later is $36,509,000 plus any 149.8 amount that is not paid for during the previous fiscal year, as 149.9 a result of adjustments under subdivision 4, paragraph (a), or 149.10 section 124D.52, subdivision 3. Beginning in fiscal year 2002, 149.11 two percent of the state total adult basic education aid must be 149.12 set aside for adult basic education supplemental service grants 149.13 under section 124D.522. 149.14 (b) The state total adult basic education aid, excluding 149.15 basic population aid, equals the difference between the amount 149.16 computed in paragraph (a), and the state total basic population 149.17 aid under subdivision 2. 149.18 [EFFECTIVE DATE.] This section is effective the day 149.19 following final enactment and applies for revenue distributions 149.20 for fiscal year 2005. 149.21 Sec. 6. Minnesota Statutes 2003 Supplement, section 149.22 124D.531, subdivision 4, is amended to read: 149.23 Subd. 4. [ADULT BASIC EDUCATION PROGRAM AID LIMIT.] (a) 149.24 Notwithstanding subdivisions 2 and 3, the total adult basic 149.25 education aid for a program per prior year contact hour must not 149.26 exceed $21 per prior year contact hour computed under 149.27 subdivision 3, clause (2). 149.28 (b) For fiscal year 2004, the aid for a program under 149.29 subdivision 3, clause (2), adjusted for changes in program 149.30 membership, must not exceed the aid for that program under 149.31 subdivision 3, clause (2), for fiscal year 2003 by more than the 149.32 greater of eight percent or $10,000. 149.33 (c) For fiscal year 2005, the aid for a program under 149.34 subdivision 3, clause (2), adjusted for changes in program 149.35 membership, must not exceed the sum of the aid for that program 149.36 under subdivision 3, clause (2), and Laws 2003, First Special 150.1 Session chapter 9, article 9, section 8, paragraph (a), for the 150.2 preceding fiscal year by more than the greater of eight percent 150.3 or $10,000. 150.4 (d) For fiscal year 2006 and later, the aid for a program 150.5 under subdivision 3, clause (2), adjusted for changes in program 150.6 membership, must not exceed the aid for that program under 150.7 subdivision 3, clause (2), for the first preceding fiscal year 150.8 by more than the greater of eight percent or $10,000. 150.9 (e) Adult basic education aid is payable to a program for 150.10 unreimbursed costs occurring in the program year as defined in 150.11 section 124D.52, subdivision 3. 150.12 (f) Any adult basic education aid that is not paid to a 150.13 program because of the program aid limitation under paragraph 150.14 (a) must be added to the state total adult basic education aid 150.15 for the next fiscal year under subdivision 1. Any adult basic 150.16 education aid that is not paid to a program because of the 150.17 program aid limitations under paragraph (b), (c), or (d) must be 150.18 reallocated among programs by adjusting the rate per contact 150.19 hour under subdivision 3, clause (2). 150.20 [EFFECTIVE DATE.] This section is effective the day 150.21 following final enactment and applies for revenue distributions 150.22 for fiscal year 2005. 150.23 Sec. 7. Laws 2003, First Special Session chapter 9, 150.24 article 9, section 9, subdivision 2, is amended to read: 150.25 Subd. 2. [ADULT BASIC EDUCATION AID.] For adult basic 150.26 education aid under Minnesota Statutes, section 124D.52, in 150.27 fiscal year 2004 and Minnesota Statutes, section 124D.531, in 150.28 fiscal year 2005: 150.29$33,153,000$33,014,000 ..... 2004 150.30$35,823,000$36,132,000 ..... 2005 150.31 The 2004 appropriation includes$5,905,000$5,827,000 for 150.32 2003 and$27,248,000$27,187,000 for 2004. 150.33 The 2005 appropriation includes$6,811,000$6,796,000 for 150.34 2004 and$29,012,000$29,336,000 for 2005. 150.35 [EFFECTIVE DATE.] This section is effective the day 150.36 following final enactment. 151.1 Sec. 8. Laws 2003, First Special Session chapter 9, 151.2 article 9, section 9, subdivision 5, is amended to read: 151.3 Subd. 5. [LEAD ABATEMENT.] For lead abatement according to 151.4 Minnesota Statutes, section 119A.46: 151.5 $ 100,000 ..... 2004 151.6$ 100,000-0- ..... 2005 151.7 Any balance in the first year does not cancel but is 151.8 available in the second year. The first year's balance, if any, 151.9 must be transferred to the Department of Health. 151.10 [EFFECTIVE DATE.] This section is effective the day 151.11 following final enactment. 151.12 Sec. 9. [REVISOR INSTRUCTION.] 151.13 In the next edition of Minnesota Statutes, the revisor of 151.14 statutes shall renumber section 119A.46 within chapter 144 and 151.15 shall appropriately revise any statutory cross-references 151.16 consistent with that renumbering. 151.17 ARTICLE 10 151.18 STATE AGENCIES 151.19 Section 1. [120B.115] [SCHOOL DISTRICT EFFICIENCY 151.20 REVIEWS.] 151.21 (a) At the written request of a school superintendent or 151.22 local school board, and to the extent state funds are 151.23 appropriated for this purpose, the commissioner of education 151.24 shall review a school district's central operations. The review 151.25 at least must: 151.26 (1) examine noninstructional expenditures; 151.27 (2) examine overhead costs, procurement practices, 151.28 facilities use and management, financial management, 151.29 transportation policies, technology planning, and energy 151.30 management; and 151.31 (3) identify opportunities for the district to improve 151.32 operational efficiencies and reduce costs. 151.33 The commissioner, at the commissioner's discretion, may 151.34 include additional areas for review. The review must not 151.35 examine the effectiveness of the educational services a district 151.36 is delivering. State and local entities must cooperate with and 152.1 assist the commissioner with a review at the request of the 152.2 commissioner. 152.3 (b) The commissioner must conduct the review within two 152.4 years of the date on which the commissioner receives the review 152.5 request and must determine the sequence, timing, and duration of 152.6 the review. The commissioner is encouraged to annually review 152.7 at least three districts in diverse locations throughout the 152.8 state. 152.9 (c) When concluding a review, the commissioner must provide 152.10 a written report of the findings, including exemplary practices 152.11 that other school districts may wish to replicate and 152.12 recommendations for improved services and greater efficiencies. 152.13 All recommendations contained in the report are advisory only 152.14 and a school district may adopt or reject the recommendations in 152.15 whole or in part. 152.16 (d) The commissioner must make public all final reports, 152.17 recommendations, related tables, and appendices. Records and 152.18 other information about identifiable school board employees are 152.19 private data on individuals and must not be disclosed. 152.20 (e) The commissioner must not seek reimbursement from a 152.21 school district or other affected local unit of government for 152.22 any costs associated with an efficiency review under this 152.23 section. 152.24 [EFFECTIVE DATE.] This section is effective July 1, 2004. 152.25 Sec. 2. Laws 2003, First Special Session chapter 9, 152.26 article 10, section 10, subdivision 2, is amended to read: 152.27 Subd. 2. [DEPARTMENT.] (a) For the department of education: 152.28 $23,653,000 ..... 2004 152.29$23,653,000$22,413,000 ..... 2005 152.30 Any balance in the first year does not cancel but is 152.31 available in the second year. 152.32 (b) $260,000 each year is for the Minnesota children's 152.33 museum. 152.34 (c) $41,000 each year is for the Minnesota academy of 152.35 science. 152.36 (d) $237,000 of the balance in the state education 153.1 courseware development account in the state government special 153.2 revenue fund as of July 1, 2004, is canceled to the general fund. 153.3 (e) $160,000 of the balance in the state item bank 153.4 revolving account in the state government special revenue fund 153.5 as of July 1, 2004, is canceled to the general fund. 153.6 (f) $621,000each yearin fiscal year 2004 and $597,000 in 153.7 fiscal year 2005 is for the board of teaching. 153.8 (g) $165,000each yearin fiscal year 2004 and $160,000 in 153.9 fiscal year 2005 is for the board of school administrators. 153.10 (h) The commissioner is encouraged to give priority 153.11 consideration to the Minnesota humanities commission when 153.12 issuing grants for professional development of teachers or 153.13 content development from best practices, Federal Title II, Part 153.14 A, Federal Title V, Part A, or other appropriate grant resources 153.15 that have a stated objective of improvement of teacher 153.16 performance. 153.17 (i) An additional $96,000 in fiscal year 2004 and $96,000 153.18 in fiscal year 2005 are appropriated from the special revenue 153.19 fund under Minnesota Statutes, section 517.08, subdivision 1c, 153.20 for family visitation centers. Any balance in the first year 153.21 does not cancel but is available for the second year. 153.22 (j) $100,000 in fiscal year 2005 is for school district 153.23 efficiency reviews under Minnesota Statutes, section 120B.115. 153.24 (k) The appropriation base for the Department of Education 153.25 is $22,727,000 for fiscal years 2006 and 2007. 153.26 [EFFECTIVE DATE.] This section is effective the day 153.27 following final enactment. 153.28 Sec. 3. Laws 2003, First Special Session chapter 9, 153.29 article 10, section 11, is amended to read: 153.30 Sec. 11. [APPROPRIATIONS; MINNESOTA STATE ACADEMIES.] 153.31 The sums indicated in this section are appropriated from 153.32 the general fund to the Minnesota state academies for the deaf 153.33 and the blind for the fiscal years designated: 153.34 $10,466,000 ..... 2004 153.35$10,466,000$10,340,000 ..... 2005 153.36 Any balance in the first year does not cancel but is 154.1 available in the second year. 154.2 [EFFECTIVE DATE.] This section is effective the day 154.3 following final enactment. 154.4 Sec. 4. Laws 2003, First Special Session chapter 9, 154.5 article 10, section 12, is amended to read: 154.6 Sec. 12. [APPROPRIATIONS; PERPICH CENTER FOR ARTS 154.7 EDUCATION.] 154.8 The sums indicated in this section are appropriated from 154.9 the general fund to the Perpich center for arts education for 154.10 the fiscal years designated: 154.11 $6,864,000 ..... 2004 154.12$6,423,000$6,244,000 ..... 2005 154.13 Any balance in the first year does not cancel but is 154.14 available in the second year. 154.15 [EFFECTIVE DATE.] This section is effective the day 154.16 following final enactment. 154.17 ARTICLE 11 154.18 DEFICIENCIES 154.19 Section 1. Laws 2003, First Special Session chapter 9, 154.20 article 1, section 53, subdivision 3, is amended to read: 154.21 Subd. 3. [REFERENDUM TAX BASE REPLACEMENT AID.] For 154.22 referendum tax base replacement aid under Minnesota Statutes, 154.23 section 126C.17, subdivision 7a: 154.24$ 7,841,000$8,096,000 ..... 2004 154.25$ 8,543,000$8,596,000 ..... 2005 154.26 The 2004 appropriation includes $1,419,000 for 2003 and 154.27$6,422,000$6,677,000 for 2004. 154.28 The 2005 appropriation includes$1,605,000$1,669,000 for 154.29 2004 and$6,938,000$6,927,000 for 2005. 154.30 [EFFECTIVE DATE.] This section is effective the day 154.31 following final enactment. 154.32 Sec. 2. Laws 2003, First Special Session chapter 9, 154.33 article 1, section 53, subdivision 5, is amended to read: 154.34 Subd. 5. [ABATEMENT REVENUE.] For abatement aid under 154.35 Minnesota Statutes, section 127A.49: 154.36$2,680,000$2,436,000 ..... 2004 155.1$2,937,000$1,559,000 ..... 2005 155.2 The 2004 appropriation includes $472,000 for 2003 and 155.3$2,208,000$1,964,000 for 2004. 155.4 The 2005 appropriation includes$551,000$491,000 for 2004 155.5 and$2,386,000$1,068,000 for 2005. 155.6 [EFFECTIVE DATE.] This section is effective the day 155.7 following final enactment. 155.8 Sec. 3. Laws 2003, First Special Session chapter 9, 155.9 article 1, section 53, subdivision 6, is amended to read: 155.10 Subd. 6. [CONSOLIDATION TRANSITION.] For districts 155.11 consolidating under Minnesota Statutes, section 123A.485: 155.12$207,000$ 35,000 ..... 2004 155.13$607,000$145,000 ..... 2005 155.14 The 2004 appropriation includes $35,000 for 2003 and 155.15$172,000$0 for 2004. 155.16 The 2005 appropriation includes$42,000$0 for 2004 and 155.17$565,000$145,000 for 2005. 155.18 [EFFECTIVE DATE.] This section is effective the day 155.19 following final enactment. 155.20 Sec. 4. Laws 2003, First Special Session chapter 9, 155.21 article 1, section 53, subdivision 11, is amended to read: 155.22 Subd. 11. [NONPUBLIC PUPIL AID.] For nonpublic pupil 155.23 education aid under Minnesota Statutes, sections 123B.40 to 155.24 123B.43 and 123B.87: 155.25$14,626,000$14,411,000 ..... 2004 155.26$15,594,000$15,072,000 ..... 2005 155.27 The 2004 appropriation includes $2,715,000 for 2003 and 155.28$11,911,000$11,696,000 for 2004. 155.29 The 2005 appropriation includes$2,977,000$2,923,000 for 155.30 2004 and$12,617,000$12,149,000 for 2005. 155.31 [EFFECTIVE DATE.] This section is effective the day 155.32 following final enactment. 155.33 Sec. 5. Laws 2003, First Special Session chapter 9, 155.34 article 1, section 53, subdivision 12, is amended to read: 155.35 Subd. 12. [NONPUBLIC PUPIL TRANSPORTATION.] For nonpublic 155.36 pupil transportation aid under Minnesota Statutes, section 156.1 123B.92, subdivision 9: 156.2$21,477,000$20,471,000 ..... 2004 156.3$21,982,000$21,421,000 ..... 2005 156.4 The 2004 appropriation includes $3,990,000 for 2003 and 156.5$17,487,000$16,481,000 for 2004. 156.6 The 2005 appropriation includes$4,371,000$4,120,000 for 156.7 2004 and$17,611,000$17,301,000 for 2005. 156.8 [EFFECTIVE DATE.] This section is effective the day 156.9 following final enactment. 156.10 Sec. 6. Laws 2003, First Special Session chapter 9, 156.11 article 2, section 55, subdivision 2, is amended to read: 156.12 Subd. 2. [CHARTER SCHOOL BUILDING LEASE AID.] For building 156.13 lease aid under Minnesota Statutes, section 124D.11, subdivision 156.14 4: 156.15$17,140,000$16,753,000 ..... 2004 156.16$21,018,000$21,347,000 ..... 2005 156.17 The 2004 appropriation includes $2,524,000 for 2003 and 156.18$14,616,000$14,229,000 for 2004. 156.19 The 2005 appropriation includes$3,654,000$3,557,000 for 156.20 2004 and$17,364,000$17,790,000 for 2005. 156.21 [EFFECTIVE DATE.] This section is effective the day 156.22 following final enactment. 156.23 Sec. 7. Laws 2003, First Special Session chapter 9, 156.24 article 2, section 55, subdivision 3, is amended to read: 156.25 Subd. 3. [CHARTER SCHOOL STARTUP AID.] For charter school 156.26 startup cost aid under Minnesota Statutes, section 124D.11: 156.27$824,000$844,000 ..... 2004 156.28$151,000$156,000 ..... 2005 156.29 The 2004 appropriation includes $220,000 for 2003 and 156.30$604,000$624,000 for 2004. 156.31 The 2005 appropriation includes$151,000$156,000 for 2004 156.32 and $0 for 2005. 156.33 [EFFECTIVE DATE.] This section is effective the day 156.34 following final enactment. 156.35 Sec. 8. Laws 2003, First Special Session chapter 9, 156.36 article 2, section 55, subdivision 4, is amended to read: 157.1 Subd. 4. [CHARTER SCHOOL INTEGRATION GRANTS.] For grants 157.2 to charter schools to promote integration and desegregation 157.3 under Minnesota Statutes, section 124D.11, subdivision 6, 157.4 paragraph (e): 157.5$8,000$7,000 ..... 2004 157.6 This appropriation includes$8,000$7,000 for 2003 and $0 157.7 for 2004. 157.8 [EFFECTIVE DATE.] This section is effective the day 157.9 following final enactment. 157.10 Sec. 9. Laws 2003, First Special Session chapter 9, 157.11 article 2, section 55, subdivision 7, is amended to read: 157.12 Subd. 7. [MAGNET SCHOOL STARTUP AID.] For magnet school 157.13 startup aid under Minnesota Statutes, section 124D.88: 157.14 $ 37,000 ..... 2004 157.15$454,000$ 40,000 ..... 2005 157.16 The 2004 appropriation includes $37,000 for 2003 and $0 for 157.17 2004. 157.18 The 2005 appropriation includes $0 for 2004 and$437,000157.19 $40,000 for 2005. 157.20 [EFFECTIVE DATE.] This section is effective the day 157.21 following final enactment. 157.22 Sec. 10. Laws 2003, First Special Session chapter 9, 157.23 article 2, section 55, subdivision 9, is amended to read: 157.24 Subd. 9. [SUCCESS FOR THE FUTURE.] For American Indian 157.25 success for the future grants under Minnesota Statutes, section 157.26 124D.81: 157.27$2,073,000$2,061,000 ..... 2004 157.28 $2,137,000 ..... 2005 157.29 The 2004 appropriation includes$363,000$351,000 for 2003 157.30 and $1,710,000 for 2004. 157.31 The 2005 appropriation includes $427,000 for 2004 and 157.32 $1,710,000 for 2005. 157.33 [EFFECTIVE DATE.] This section is effective the day 157.34 following final enactment. 157.35 Sec. 11. Laws 2003, First Special Session chapter 9, 157.36 article 2, section 55, subdivision 12, is amended to read: 158.1 Subd. 12. [TRIBAL CONTRACT SCHOOLS.] For tribal contract 158.2 school aid under Minnesota Statutes, section 124D.83: 158.3$2,135,000$1,617,000 ..... 2004 158.4$2,336,000$2,185,000 ..... 2005 158.5 The 2004 appropriation includes $285,000 for 2003 and 158.6$1,850,000$1,332,000 for 2004. 158.7 The 2005 appropriation includes$462,000$333,000 for 2004 158.8 and$1,874,000$1,852,000 for 2005. 158.9 [EFFECTIVE DATE.] This section is effective the day 158.10 following final enactment. 158.11 Sec. 12. Laws 2003, First Special Session chapter 9, 158.12 article 3, section 20, subdivision 4, is amended to read: 158.13 Subd. 4. [AID FOR CHILDREN WITH DISABILITIES.] For aid 158.14 under Minnesota Statutes, section 125A.75, subdivision 3, for 158.15 children with disabilities placed in residential facilities 158.16 within the district boundaries for whom no district of residence 158.17 can be determined: 158.18$2,177,000$2,311,000 ..... 2004 158.19$2,244,000$2,550,000 ..... 2005 158.20 If the appropriation for either year is insufficient, the 158.21 appropriation for the other year is available. 158.22 [EFFECTIVE DATE.] This section is effective the day 158.23 following final enactment. 158.24 Sec. 13. Laws 2003, First Special Session chapter 9, 158.25 article 3, section 20, subdivision 5, is amended to read: 158.26 Subd. 5. [TRAVEL FOR HOME-BASED SERVICES.] For aid for 158.27 teacher travel for home-based services under Minnesota Statutes, 158.28 section 125A.75, subdivision 1: 158.29$220,000$173,000 ..... 2004 158.30$261,000$178,000 ..... 2005 158.31 The 2004 appropriation includes $34,000 for 2003 and 158.32$186,000$139,000 for 2004. 158.33 The 2005 appropriation includes$46,000$34,000 for 2004 158.34 and$215,000$144,000 for 2005. 158.35 [EFFECTIVE DATE.] This section is effective the day 158.36 following final enactment. 159.1 Sec. 14. Laws 2003, First Special Session chapter 9, 159.2 article 3, section 20, subdivision 6, is amended to read: 159.3 Subd. 6. [SPECIAL EDUCATION; EXCESS COSTS.] For excess 159.4 cost aid under Minnesota Statutes, section 125A.79, subdivision 159.5 7: 159.6$92,606,000$92,605,000 ..... 2004 159.7$92,984,000$92,799,000 ..... 2005 159.8 The 2004 appropriation includes $41,754,000 for 2003 and 159.9$50,852,000$50,851,000 for 2004. 159.10 The 2005 appropriation includes$41,215,000$41,216,000 for 159.11 2004 and$51,769,000$51,583,000 for 2005. 159.12 [EFFECTIVE DATE.] This section is effective the day 159.13 following final enactment. 159.14 Sec. 15. Laws 2003, First Special Session chapter 9, 159.15 article 3, section 20, subdivision 7, is amended to read: 159.16 Subd. 7. [LITIGATION COSTS FOR SPECIAL EDUCATION.] For 159.17 paying the costs a district incurs under Minnesota Statutes, 159.18 section 125A.75, subdivision 8: 159.19$346,000$201,000 ..... 2004 159.20$ 17,000$150,000 ..... 2005 159.21 [EFFECTIVE DATE.] This section is effective the day 159.22 following final enactment. 159.23 Sec. 16. Laws 2003, First Special Session chapter 9, 159.24 article 3, section 20, subdivision 8, is amended to read: 159.25 Subd. 8. [TRANSITION FOR DISABLED STUDENTS.] For aid for 159.26 transition programs for children with disabilities under 159.27 Minnesota Statutes, section 124D.454: 159.28$8,625,000$8,570,000 ..... 2004 159.29$8,867,000$8,760,000 ..... 2005 159.30 The 2004 appropriation includes $1,516,000 for 2003 and 159.31$7,109,000$7,054,000 for 2004. 159.32 The 2005 appropriation includes$1,777,000$1,763,000 for 159.33 2004 and$7,090,000$6,997,000 for 2005. 159.34 [EFFECTIVE DATE.] This section is effective the day 159.35 following final enactment. 159.36 Sec. 17. Laws 2003, First Special Session chapter 9, 160.1 article 3, section 20, subdivision 9, is amended to read: 160.2 Subd. 9. [COURT-PLACED SPECIAL EDUCATION REVENUE.] For 160.3 reimbursing serving school districts for unreimbursed eligible 160.4 expenditures attributable to children placed in the serving 160.5 school district by court action under Minnesota Statutes, 160.6 section 125A.79, subdivision 4: 160.7$152,000$36,000 ..... 2004 160.8$160,000$61,000 ..... 2005 160.9 [EFFECTIVE DATE.] This section is effective the day 160.10 following final enactment. 160.11 Sec. 18. Laws 2003, First Special Session chapter 9, 160.12 article 4, section 31, subdivision 2, is amended to read: 160.13 Subd. 2. [HEALTH AND SAFETY REVENUE.] For health and 160.14 safety aid according to Minnesota Statutes, section 123B.57, 160.15 subdivision 5: 160.16$7,839,000$5,356,000 ..... 2004 160.17$6,068,000$1,920,000 ..... 2005 160.18 The 2004 appropriation includes $1,516,000 for 2003 and 160.19$6,323,000$3,840,000 for 2004. 160.20 The 2005 appropriation includes$1,580,000$960,000 for 160.21 2004 and$4,488,000$960,000 for 2005. 160.22 [EFFECTIVE DATE.] This section is effective the day 160.23 following final enactment. 160.24 Sec. 19. Laws 2003, First Special Session chapter 9, 160.25 article 4, section 31, subdivision 3, is amended to read: 160.26 Subd. 3. [DEBT SERVICE EQUALIZATION.] For debt service aid 160.27 according to Minnesota Statutes, section 123B.53, subdivision 6: 160.28$34,500,000$35,598,000 ..... 2004 160.29$37,575,000$31,220,000 ..... 2005 160.30 The 2004 appropriation includes $5,586,000 for 2003 and 160.31$28,914,000$30,012,000 for 2004. 160.32 The 2005 appropriation includes$7,228,000$7,503,000 for 160.33 2004 and$30,347,000$23,717,000 for 2005. 160.34 [EFFECTIVE DATE.] This section is effective the day 160.35 following final enactment. 160.36 Sec. 20. Laws 2003, First Special Session chapter 9, 161.1 article 5, section 35, subdivision 2, is amended to read: 161.2 Subd. 2. [SCHOOL LUNCH.](a)For school lunch aid 161.3 according to Minnesota Statutes, section 124D.111, and Code of 161.4 Federal Regulations, title 7, section 210.17: 161.5$7,800,000$7,650,000 ..... 2004 161.6$7,950,000$7,760,000 ..... 2005 161.7 [EFFECTIVE DATE.] This section is effective the day 161.8 following final enactment. 161.9 Sec. 21. Laws 2003, First Special Session chapter 9, 161.10 article 5, section 35, subdivision 3, is amended to read: 161.11 Subd. 3. [TRADITIONAL SCHOOL BREAKFAST; KINDERGARTEN 161.12 MILK.] For traditional school breakfast aid and kindergarten 161.13 milk under Minnesota Statutes, sections 124D.1158 and 124D.118: 161.14$3,088,000$4,382,000 ..... 2004 161.15$3,217,000$4,460,000 ..... 2005 161.16 [EFFECTIVE DATE.] This section is effective the day 161.17 following final enactment. 161.18 Sec. 22. Laws 2003, First Special Session chapter 9, 161.19 article 7, section 11, subdivision 3, is amended to read: 161.20 Subd. 3. [EARLY CHILDHOOD FAMILY EDUCATION AID.] For early 161.21 childhood family education aid under Minnesota Statutes, section 161.22 124D.135: 161.23$19,675,000$19,079,000 ..... 2004 161.24$15,129,000$14,407,000 ..... 2005 161.25 The 2004 appropriation includes $3,239,000 for 2003 and 161.26$16,436,000$15,840,000 for 2004. 161.27 The 2005 appropriation includes$4,109,000$3,959,000 for 161.28 2004 and$11,020,000$10,448,000 for 2005. 161.29 [EFFECTIVE DATE.] This section is effective the day 161.30 following final enactment. 161.31 Sec. 23. Laws 2003, First Special Session chapter 9, 161.32 article 8, section 7, subdivision 2, is amended to read: 161.33 Subd. 2. [COMMUNITY EDUCATION AID.] For community 161.34 education aid under Minnesota Statutes, section 124D.20: 161.35$5,495,000$5,351,000 ..... 2004 161.36$3,406,000$3,137,000 ..... 2005 162.1 The 2004 appropriation includes $956,000 for 2003 and 162.2$4,539,000$4,395,000 for 2004. 162.3 The 2005 appropriation includes$1,134,000$1,098,000 for 162.4 2004 and$2,272,000$2,039,000 for 2005. 162.5 [EFFECTIVE DATE.] This section is effective the day 162.6 following final enactment. 162.7 Sec. 24. Laws 2003, First Special Session chapter 9, 162.8 article 8, section 7, subdivision 5, is amended to read: 162.9 Subd. 5. [SCHOOL-AGE CARE REVENUE.] For extended day care 162.10 aid under Minnesota Statutes, section 124D.22: 162.11$41,000$40,000 ..... 2004 162.12$22,000$24,000 ..... 2005 162.13 The 2004 appropriation includes $14,000 for 2003 and 162.14$27,000$26,000 for 2004. 162.15 The 2005 appropriation includes $6,000 for 2004 and$16,000162.16 $18,000 for 2005. 162.17 [EFFECTIVE DATE.] This section is effective the day 162.18 following final enactment. 162.19 Sec. 25. [APPROPRIATIONS IN OTHER BILLS.] 162.20 The appropriations for forecast programs in this act 162.21 prevail over any other appropriations enacted during the 2004 162.22 regular legislative session for the same programs, regardless of 162.23 the date of enactment or effective date of this act and such 162.24 other appropriations. 162.25 [EFFECTIVE DATE.] This section is effective the day 162.26 following final enactment. 162.27 ARTICLE 12 162.28 TECHNICAL AND CONFORMING AMENDMENTS 162.29 Section 1. Minnesota Statutes 2002, section 120B.35, is 162.30 amended by adding a subdivision to read: 162.31 Subd. 5. [IMPROVING GRADUATION RATES FOR STUDENTS WITH 162.32 EMOTIONAL OR BEHAVIORAL DISORDERS.] (a) A district must develop 162.33 strategies in conjunction with parents of students with 162.34 emotional or behavioral disorders and the county board 162.35 responsible for implementing sections 245.487 to 245.4888 to 162.36 keep students with emotional or behavioral disorders in school, 163.1 when the district has a drop-out rate for students with an 163.2 emotional or behavioral disorder in grades 9 through 12 163.3 exceeding 25 percent. 163.4 (b) A district must develop a plan in conjunction with 163.5 parents of students with emotional or behavioral disorders and 163.6 the local mental health authority to increase the graduation 163.7 rates of students with emotional or behavioral disorders. A 163.8 district with a drop-out rate for children with an emotional or 163.9 behavioral disturbance in grades 9 through 12 that is in the top 163.10 25 percent of all districts shall submit a plan for review and 163.11 oversight to the commissioner. 163.12 Sec. 2. Minnesota Statutes 2002, section 123A.55, is 163.13 amended to read: 163.14 123A.55 [CLASSES, NUMBER.] 163.15 Districts shall be classified as common, independent, or 163.16 special districts, each of which is a public corporation. Each 163.17 district shall be known by its classification and assigned a 163.18 number by the commissioner so that its title will be .......... 163.19 School DistrictNumberNo. ..... . 163.20 Sec. 3. Minnesota Statutes 2002, section 124D.19, 163.21 subdivision 11, is amended to read: 163.22 Subd. 11. [SCHOOL-AGE CARE PROGRAMS.] (a) A school board 163.23 may offer, as part of a community education program, a 163.24 school-age care program for children from kindergarten through 163.25 grade 6 for the purpose of expanding students' learning 163.26 opportunities. If the school board chooses not to offer a 163.27 school-age care program, it may allow an appropriate insured 163.28 community group, for profit entity or nonprofit organization to 163.29 use available school facilities for the purpose of offering a 163.30 school-age care program. 163.31 (b) A school-age care program must include the following: 163.32 (1) adult supervised programs while school is not in 163.33 session; 163.34 (2) parental involvement in program design and direction; 163.35 (3) partnerships with the kindergarten through grade 12 163.36 system, and other public, private, or nonprofit entities; 164.1 (4) opportunities for trained secondary school pupils to 164.2 work with younger children in a supervised setting as part of a 164.3 community service program; and 164.4 (5) access to available school facilities, including the 164.5 gymnasium, sports equipment, computer labs, and media centers, 164.6 when not otherwise in use as part of the operation of the 164.7 school. The school district may establish reasonable rules 164.8 relating to access to these facilities and may require that: 164.9 (i) the organization request access to the facilities and 164.10 prepare and maintain a schedule of proposed use; 164.11 (ii) the organization provide evidence of adequate 164.12 insurance to cover the activities to be conducted in the 164.13 facilities; and 164.14 (iii) the organization prepare and maintain a plan 164.15 demonstrating the adequacy and training of staff to supervise 164.16 the use of the facilities. 164.17 (c) The district may charge a sliding fee based upon family 164.18 income for school-age care programs. The district may receive 164.19 money from other public or private sources for the school-age 164.20 care program. The board of the district must develop standards 164.21 for school-age child care programs. TheState Board164.22 commissioner of education may not adopt rules for school-age 164.23 care programs. 164.24 (d) The district shall maintain a separate account within 164.25 the community services fund for all funds related to the 164.26 school-age care program. 164.27 (e) A district is encouraged to coordinate the school-age 164.28 care program with its special education, vocational education, 164.29 adult basic education, early childhood family education 164.30 programs, kindergarten through grade 12 instruction and 164.31 curriculum services, youth development and youth service 164.32 agencies, and with related services provided by other 164.33 governmental agencies and nonprofit agencies. 164.34 Sec. 4. Minnesota Statutes 2002, section 124D.68, 164.35 subdivision 3, is amended to read: 164.36 Subd. 3. [ELIGIBLE PROGRAMS.] (a) A pupil who is eligible 165.1 according to subdivision 2 may enroll in area learning centers 165.2 under sections 123A.05 to 123A.08, or according to section165.3122A.164. 165.4 (b) A pupil who is eligible according to subdivision 2 and 165.5 who is between the ages of 16 and 21 may enroll in postsecondary 165.6 courses under section 124D.09. 165.7 (c) A pupil who is eligible under subdivision 2, may enroll 165.8 in any public elementary or secondary education program. 165.9 However, a person who is eligible according to subdivision 2, 165.10 clause (b), may enroll only if the school board has adopted a 165.11 resolution approving the enrollment. 165.12 (d) A pupil who is eligible under subdivision 2, may enroll 165.13 in any nonpublic, nonsectarian school that has contracted with 165.14 the serving school district to provide educational services. 165.15 (e) A pupil who is between the ages of 16 and 21 may enroll 165.16 in any adult basic education programs approved under section 165.17 124D.52 and operated under the community education program 165.18 contained in section 124D.19. 165.19 Sec. 5. Minnesota Statutes 2002, section 125A.07, is 165.20 amended to read: 165.21 125A.07 [RULES OF COMMISSIONER.] 165.22 (a) As defined in this paragraph, the commissioner must 165.23 adopt rules relative to qualifications of essential personnel, 165.24 courses of study, methods of instruction, pupil eligibility, 165.25 size of classes, rooms, equipment, supervision, parent 165.26 consultation, and other necessary rules for instruction of 165.27 children with a disability. These rules must provide standards 165.28 and procedures appropriate for the implementation of and within 165.29 the limitations of sections 125A.08 and125A.09125A.091. These 165.30 rules must also provide standards for the discipline, control, 165.31 management, and protection of children with a disability. The 165.32 commissioner must not adopt rules for pupils served primarily in 165.33 the regular classroom establishing either case loads or the 165.34 maximum number of pupils that may be assigned to special 165.35 education teachers. The commissioner, in consultation with the 165.36 Departments of Health and Human Services, must adopt permanent 166.1 rules for instruction and services for children under age five 166.2 and their families. These rules are binding on state and local 166.3 education, health, and human services agencies. The 166.4 commissioner must adopt rules to determine eligibility for 166.5 special education services. The rules must include procedures 166.6 and standards by which to grant variances for experimental 166.7 eligibility criteria. The commissioner must, according to 166.8 section 14.05, subdivision 4, notify a district applying for a 166.9 variance from the rules within 45 calendar days of receiving the 166.10 request whether the request for the variance has been granted or 166.11 denied. If a request is denied, the commissioner must specify 166.12 the program standards used to evaluate the request and the 166.13 reasons for denying the request. 166.14 (b) As provided in this paragraph, the state's regulatory 166.15 scheme should support schools by assuring that all state special 166.16 education rules adopted by the commissioner result in one or 166.17 more of the following outcomes: 166.18 (1) increased time available to teachers and, where 166.19 appropriate, to support staff including school nurses for 166.20 educating students through direct and indirect instruction; 166.21 (2) consistent and uniform access to effective education 166.22 programs for students with disabilities throughout the state; 166.23 (3) reduced inequalities and conflict, appropriate due 166.24 process hearing procedures and reduced court actions related to 166.25 the delivery of special education instruction and services for 166.26 students with disabilities; 166.27 (4) clear expectations for service providers and for 166.28 students with disabilities; 166.29 (5) increased accountability for all individuals and 166.30 agencies that provide instruction and other services to students 166.31 with disabilities; 166.32 (6) greater focus for the state and local resources 166.33 dedicated to educating students with disabilities; and 166.34 (7) clearer standards for evaluating the effectiveness of 166.35 education and support services for students with disabilities. 166.36 Sec. 6. Minnesota Statutes 2002, section 125A.46, is 167.1 amended to read: 167.2 125A.46 [DUE PROCESS HEARINGS.] 167.3 The procedures for due process hearings and appeals must be 167.4 the same as those in section125A.09125A.091. The 167.5 responsibility for payment of costs and conducting due process 167.6 hearings and appeals shall be allocated to the appropriate 167.7 agency in accordance with sections 125A.30, 125A.39, and 125A.42. 167.8 Sec. 7. Minnesota Statutes 2003 Supplement, section 167.9 125A.75, subdivision 8, is amended to read: 167.10 Subd. 8. [LITIGATION AND HEARING COSTS.] (a) For fiscal 167.11 year 1999 and thereafter, the commissioner of education, or the 167.12 commissioner's designee, shall use state funds to pay school 167.13 districts for the administrative costs of a due process hearing 167.14 incurred under section125A.09125A.091, subdivisions6, 1012, 167.15 13, and1124, including hearing officer fees, court reporter 167.16 fees, mileage costs, transcript costs, interpreter and 167.17 transliterator fees, independent evaluations ordered by the 167.18 hearing officer, and rental of hearing rooms, but not including 167.19 district attorney fees. To receive state aid under this 167.20 paragraph, a school district shall submit to the commissioner by 167.21 August 1 an itemized list of unreimbursed actual costs for fees 167.22 and other expenses under this paragraph incurred after June 30, 167.23 1998, for hearings completed during the previous fiscal year. 167.24 State funds used for aid to school districts under this 167.25 paragraph shall be based on the unreimbursed actual costs and 167.26 fees submitted by a district. 167.27 (b) The commissioner shall provide districts with a form on 167.28 which to annually report litigation costs under this section and 167.29 shall base aid estimates on preliminary reports submitted by the 167.30 district during the current fiscal year. 167.31 Sec. 8. Minnesota Statutes 2003 Supplement, section 167.32 127A.41, subdivision 9, is amended to read: 167.33 Subd. 9. [APPROPRIATION TRANSFERS FOR COMMUNITY EDUCATION 167.34 PROGRAMS.] If a direct appropriation from the general fund to 167.35 the Department of Education for an education aid or grant 167.36 authorized under section 124D.135, 124D.16, 124D.20,124D.21,168.1 124D.22, 124D.52, 124D.531,124D.54,124D.55, or 124D.56 exceeds 168.2 the amount required, the commissioner of education may transfer 168.3 the excess to any education aid or grant appropriation that is 168.4 insufficiently funded under these sections. Excess 168.5 appropriations shall be allocated proportionately among aids or 168.6 grants that have insufficient appropriations. The commissioner 168.7 of finance shall make the necessary transfers among 168.8 appropriations according to the determinations of the 168.9 commissioner of education. If the amount of the direct 168.10 appropriation for the aid or grant plus the amount transferred 168.11 according to this subdivision is insufficient, the commissioner 168.12 shall prorate the available amount among eligible districts. 168.13 The state is not obligated for any additional amounts. 168.14 Sec. 9. Minnesota Statutes 2002, section 631.40, 168.15 subdivision 4, is amended to read: 168.16 Subd. 4. [LICENSED TEACHERS.] When a person is convicted 168.17 of child abuse, as defined in section 609.185, or sexual abuse 168.18 under section 609.342, 609.343, 609.344, 609.345, 609.3451, 168.19 subdivision 3, or 617.23, subdivision 3, the court shall 168.20 determine whether the person is licensed to teach under chapter 168.21 122A. If the offender is a licensed teacher, the court 168.22 administrator shall send a certified copy of the conviction to 168.23 the Board of Teachingor the state Board of Education, whichever168.24has jurisdiction over the teacher's license,within ten days 168.25 after the conviction. 168.26 Sec. 10. Laws 2003, chapter 130, section 12, is amended to 168.27 read: 168.28 Sec. 12. [REVISOR INSTRUCTION.] 168.29 (a) In Minnesota Statutes, the revisor shall renumber 168.30 section119A.02119A.01, subdivision 2, as 120A.02, paragraph 168.31 (a), and section 120A.02 as 120A.02, paragraph (b). 168.32 (b) In Minnesota Statutes and Minnesota Rules, the revisor 168.33 shall change the term "children, families, and learning" to 168.34 "education." 168.35 Sec. 11. [REVISOR INSTRUCTION.] 168.36 In the next edition of Minnesota Rules, chapter 3530, the 169.1 revisor shall change the term "Office of Public Libraries and 169.2 Interlibrary Cooperation" to "Library Development and Services" 169.3 and "OPLIC" to "LDS." 169.4 Sec. 12. [REPEALER; REVIVAL OF STATUTE.] 169.5 Minnesota Statutes 2002, section 134.47, subdivision 3, is 169.6 repealed effective retroactive to June 30, 2003. 169.7 Notwithstanding Minnesota Statutes, section 645.36, Minnesota 169.8 Statutes 2002, section 134.47, subdivisions 1 and 2, are revived 169.9 effective retroactively from June 30, 2003. 169.10 ARTICLE 13 169.11 K-12 SCIENCE AND SOCIAL STUDIES STANDARDS 169.12 Section 1. Minnesota Statutes 2003 Supplement, section 169.13 120B.021, subdivision 3, is amended to read: 169.14 Subd. 3. [RULEMAKING.] (a) The commissioner, consistent 169.15 with the requirements of this section and section 120B.022, must 169.16 adopt statewide rules under section 14.389 for implementing 169.17 statewide rigorous core academic standards in language arts, 169.18 mathematics, science, social studies, and the arts. After the 169.19 rules authorized under this paragraph are initially adopted, the 169.20 commissioner may not amend or repeal these rules nor adopt new 169.21 rules on the same topic without specific legislative 169.22 authorization.TheseThe academic standards for language arts, 169.23 mathematics, and the arts must be implemented for all students 169.24 beginning in the 2003-2004 school year. The academic standards 169.25 for science must be implemented for all students beginning in 169.26 the 2004-2005 school year and the academic standards for social 169.27 studies must be implemented for all students beginning in the 169.28 2005-2006 school year. 169.29 (b) The rules authorized under this section are not subject 169.30 to section 14.127. 169.31 [EFFECTIVE DATE.] This section is effective the day 169.32 following final enactment. 169.33 Sec. 2. Minnesota Statutes 2003 Supplement, section 169.34 120B.021, is amended by adding a subdivision to read: 169.35 Subd. 4. [STATE MUST AFFIRM NO CHILD LEFT BEHIND ACT.] The 169.36 commissioner of the Minnesota Department of Education by 170.1 February 15, 2005, must nullify and revoke the consolidated 170.2 state plan submitted to the federal Department of Education for 170.3 implementing the federal No Child Left Behind Act of 2001 and 170.4 must not renew any existing contract or agreement and must not 170.5 enter into any new contract or agreement related to implementing 170.6 the federal act if: 170.7 (1) the state does not enact legislation before that date 170.8 specifically affirming Minnesota's intent to implement the 170.9 federal act; and 170.10 (2) the federal government enacts a law that abolishes the 170.11 federal Department of Education before that date. 170.12 [EFFECTIVE DATE.] This section is effective the day 170.13 following final enactment and applies to all contracts and 170.14 agreements renewed or entered into after February 15, 2005. 170.15 Sec. 3. [MINNESOTA'S HIGH ACADEMIC STANDARDS.] 170.16 (a) The standards for science and social studies adopted by 170.17 the commissioner of education under Minnesota Statutes, section 170.18 120B.021, must be identical to: 170.19 (1) the K-12 standards for science contained in the 170.20 document labeled "Minnesota Academic Standards, Science K-12, 170.21 December 19, 2003, Minnesota Academic Standards Committee, 170.22 Minnesota Department of Education"; and 170.23 (2) the K-12 standards for social studies contained in the 170.24 document labeled "Minnesota Academic Standards, Social Studies 170.25 K-12, February 17, 2004, Minnesota Academic Standards Committee, 170.26 Minnesota Department of Education." 170.27 (b) The K-12 standards documents must be deposited with the 170.28 Minnesota Revisor of Statutes, the Legislative Reference 170.29 Library, and the Minnesota State Law Library, where the 170.30 documents shall be maintained until the commissioner adopts 170.31 rules for implementing statewide rigorous core academic 170.32 standards in science and social studies under Minnesota 170.33 Statutes, section 120B.021, subdivision 3. The revisor must 170.34 determine that the rules are identical to the documents 170.35 deposited with the revisor under this section before the revisor 170.36 approves the form of the rules. In approving the form of the 171.1 rules, the revisor may make any needed grammatical and form 171.2 changes. 171.3 [EFFECTIVE DATE.] This section is effective the day 171.4 following final enactment. 171.5 Sec. 4. [K-12 SOCIAL STUDIES STANDARDS RULES.] 171.6 (a) Beginning no later than July 1, 2004, the education 171.7 commissioner shall adopt the K-12 academic social studies 171.8 standards incorporated by reference under this act using the 171.9 expedited process under Minnesota Statutes, section 14.389. 171.10 (b) In addition to technical changes, corrections, 171.11 clarifications, and similarly needed revisions, the revisor 171.12 shall modify the K-12 academic social studies standards as 171.13 indicated: 171.14 Page 10, line 4, delete "place the 4-6 standards at grade 171.15 levels that accommodate their particular curriculum, provided 171.16 that all standards have been mastered by the end of grade 6." 171.17 and insert "organize the grades 4-8 standards in one of two 171.18 ways: (1) banding grades 4-5 together and grades 6-7-8 171.19 together; or (2) banding grades 4-5-6 together and grades 7-8 171.20 together. The standards should be mastered by the end of the 171.21 highest grade in the band". 171.22 Page 13, line 4, delete "place the 4-6 standards at grade 171.23 levels that accommodate their particular curriculum, provided 171.24 that all standards have been mastered by the end of grade 6." 171.25 and insert "organize the grades 4-8 standards in one of two 171.26 ways: (1) banding grades 4-5 together and grades 6-7-8 171.27 together; or (2) banding grades 4-5-6 together and grades 7-8 171.28 together. The standards should be mastered by the end of the 171.29 highest grade in the band." 171.30 Page 18, line 4, delete "place the 4-6 standards at grade 171.31 levels that accommodate their particular curriculum, provided 171.32 that all standards have been mastered by the end of grade 6." 171.33 and insert "organize the grades 4-8 standards in one of two 171.34 ways: (1) banding grades 4-5 together and grades 6-7-8 171.35 together; or (2) banding grades 4-5-6 together and grades 7-8 171.36 together. The standards should be mastered by the end of the 172.1 highest grade in the band". 172.2 Page 19, Strand I, Sub-Strand C, delete "(1810-1860)" and 172.3 insert "(1810-1890)". 172.4 Page 19, Strand I, Sub-Strand C, Standard, delete "early". 172.5 Page 19, Strand I, Sub-Strand C, Examples 1, delete 172.6 "immigrants, influence of" and insert ", German and". 172.7 Page 20, Strand I, Sub-Strand E, Examples 3, delete 172.8 "missionaries". 172.9 Page 26, line 4, delete "place the 7-8 standards at grade 172.10 levels that accommodate their particular curriculum, provided 172.11 that all standards have been mastered by the end of grade 8." 172.12 and insert "organize the grades 4-8 standards in one of two 172.13 ways: (1) banding grades 4-5 together and grades 6-7-8 172.14 together; or (2) banding grades 4-5-6 together and grades 7-8 172.15 together. The standards should be mastered by the end of the 172.16 highest grade in the band." 172.17 Page 32, line 4, delete "place the 7-8 standards at grade 172.18 levels that accommodate their particular curriculum, provided 172.19 that all standards have been mastered by the end of grade 8." 172.20 and insert "organize the grades 4-8 standards in one of two 172.21 ways: (1) banding grades 4-5 together and grades 6-7-8 172.22 together; or (2) banding grades 4-5-6 together and grades 7-8 172.23 together. The standards should be mastered by the end of the 172.24 highest grade in the band." 172.25 [EFFECTIVE DATE.] This section is effective the day 172.26 following final enactment. 172.27 Sec. 5. [K-12 SCIENCE STANDARDS RULES.] 172.28 (a) Beginning no later than July 1, 2004, the education 172.29 commissioner shall adopt the K-12 academic science standards 172.30 incorporated by reference under this act using the expedited 172.31 process under Minnesota Statutes, section 14.389. 172.32 (b) In addition to technical changes, corrections, 172.33 clarifications, and similarly needed revisions, the revisor 172.34 shall modify the K-12 academic science standards as indicated: 172.35 Page 1, below the word "Science" in the title, insert "The 172.36 grade level designations in the Minnesota Academic Standards for 173.1 Science are strongly recommended. However, school districts may 173.2 place the (K-2, 3-5, 6-8) standards at grade levels that 173.3 accommodate their particular curriculum. The standards should 173.4 be mastered by the end of the highest grade in the band." 173.5 Page 17, Grade 9-12, Strand II, Sub-Strand A, after 173.6 Benchmarks 9, insert: 173.7 "10. The student will be able to explain how scientific 173.8 and technological innovations as well as new evidence can 173.9 challenge portions of or entire accepted theories and models 173.10 including, but not limited to, atomic theory." 173.11 Page 19, Grade 9-12, Strand III, Sub-Strand A, after 173.12 Benchmarks 7, insert: 173.13 "The student will be able to explain how scientific and 173.14 technological innovations as well as new evidence can challenge 173.15 portions of or entire accepted theories and models including, 173.16 but not limited to, plate tectonic theory and big bang theory." 173.17 Page 22, Grade 9-12, Strand IV, Sub-Strand E, Benchmarks 1, 173.18 after the period, insert: 173.19 "The student will be able to explain how scientific and 173.20 technological innovations as well as new evidence can challenge 173.21 portions of or entire accepted theories and models including, 173.22 but not limited to, cell theory, theory of evolution, and germ 173.23 theory of disease." 173.24 [EFFECTIVE DATE.] This section is effective the day 173.25 following final enactment.