Minnesota Legislature
SF 2267
1st Engrossment - 84th Legislature (2005 - 2006) Posted on 12/15/2009 12:00am
KEY: stricken = removed, old language.
underscored = added, new language.
1.1 A bill for an act 1.2 relating to education; providing for prekindergarten 1.3 through grade 12 education including general 1.4 education; education excellence; special programs; 1.5 technology, facilities, and accounting; nutrition; 1.6 state agencies; technical and conforming amendments; 1.7 authorizing rulemaking; providing for reports; 1.8 appropriating money; amending Minnesota Statutes 2004, 1.9 sections 13.321, by adding a subdivision; 120A.05, by 1.10 adding a subdivision; 120B.02; 120B.021, subdivision 1.11 1, by adding a subdivision; 120B.024; 120B.11, 1.12 subdivisions 1, 2, 3, 4, 5, 8; 120B.22, subdivision 1; 1.13 120B.30, subdivisions 1, 1a, by adding a subdivision; 1.14 120B.31, subdivision 4; 121A.06, subdivisions 2, 3; 1.15 121A.41, subdivision 10; 121A.53; 121A.66, subdivision 1.16 5, by adding subdivisions; 121A.67; 122A.06, 1.17 subdivision 4; 122A.12, subdivision 2; 122A.15, by 1.18 adding a subdivision; 122A.18, subdivision 2a; 1.19 122A.40, subdivision 5; 122A.41, subdivisions 2, 5a, 1.20 14; 122A.413; 122A.60, subdivision 1, by adding 1.21 subdivisions; 122A.61, subdivision 1; 123A.05, 1.22 subdivision 2; 123B.02, by adding subdivisions; 1.23 123B.04, subdivisions 1, 2; 123B.42, by adding a 1.24 subdivision; 123B.49, subdivision 4; 123B.492; 1.25 123B.53, subdivision 1; 123B.54, as amended; 123B.75, 1.26 by adding a subdivision; 123B.76, subdivision 3; 1.27 123B.79, subdivision 6; 123B.81, subdivision 1; 1.28 123B.82; 123B.83, subdivision 2; 123B.88, by adding a 1.29 subdivision; 123B.92, subdivisions 1, 5; 124D.081; 1.30 124D.09, subdivision 12; 124D.095, subdivisions 2, 4, 1.31 8, by adding a subdivision; 124D.10, subdivision 8; 1.32 124D.11, subdivisions 1, 2, 5, 6; 124D.111, 1.33 subdivision 1; 124D.118, subdivision 4; 124D.40; 1.34 124D.59, subdivision 2; 124D.66, subdivision 3; 1.35 124D.68, subdivision 9; 124D.69, subdivision 1; 1.36 124D.74, subdivision 1; 124D.81, subdivision 1; 1.37 124D.84, subdivision 1; 125A.11, subdivision 1; 1.38 125A.24; 125A.28; 125A.51; 125A.76, subdivisions 1, 3, 1.39 4; 125A.79, subdivisions 1, 6; 126C.01, subdivision 1.40 11; 126C.05, by adding subdivisions; 126C.10, 1.41 subdivisions 1, 2, 13, 13a, 13b, 18, 24, 29, 30, 31, 1.42 32, 33; 126C.13, subdivision 4, by adding 1.43 subdivisions; 126C.17, subdivisions 1, 2, 5, 9, 11, 1.44 13; 126C.21, subdivision 4; 126C.40, subdivision 1; 1.45 126C.457; 126C.48, subdivisions 2, 8; 126C.63, 1.46 subdivisions 5, 8; 127A.41, subdivision 8; 127A.45, 2.1 subdivisions 11, 12; 127A.47, subdivisions 7, 8; 2.2 127A.49, subdivisions 2, 3; 128C.12, subdivisions 1, 2.3 3; 128D.11, subdivision 9; 134.31, by adding a 2.4 subdivision; 179A.03, subdivision 14; 260C.201, 2.5 subdivision 1; 275.14; 275.16; 469.177, subdivision 9; 2.6 475.61, subdivision 4; 2005 S.F. No. 1879, article 3, 2.7 section 3, subdivisions 2, 3, 7, 8, 24, 25, 26, 27, 2.8 29, 31, 32, 35, 36, 41, 43, 44, 50, if enacted; 2005 2.9 S.F. No. 1879, article 3, section 4, if enacted; 2005 2.10 S.F. No. 1879, article 3, section 5, if enacted; Laws 2.11 1996, chapter 412, article 5, section 24; Laws 2003, 2.12 First Special Session chapter 9, article 4, section 2.13 29, as amended; proposing coding for new law in 2.14 Minnesota Statutes, chapters 120A; 120B; 121A; 122A; 2.15 123B; 124D; 125A; 125B; 127A; 129C; repealing 2.16 Minnesota Statutes 2004, sections 121A.23; 122A.414; 2.17 122A.415; 123B.83, subdivision 1; 125A.75, subdivision 2.18 8; 126C.10, subdivisions 13a, 13b, 29, 30, 31, 32, 33; 2.19 126C.42, subdivisions 1, 4; 126C.44; 128C.12, 2.20 subdivision 4. 2.21 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 2.22 ARTICLE 1 2.23 GENERAL EDUCATION 2.24 Section 1. Minnesota Statutes 2004, section 120A.05, is 2.25 amended by adding a subdivision to read: 2.26 Subd. 18. [KINDERGARTEN.] "Kindergarten" means a program 2.27 designed for pupils five years of age on September 1 of the 2.28 calendar year in which the school year commences that prepares 2.29 pupils to enter first grade the following school year. A 2.30 program designed for pupils younger than five years of age on 2.31 September 1 of the calendar year in which the school year 2.32 commences that prepares pupils to enter kindergarten the 2.33 following school year is a prekindergarten program. 2.34 [EFFECTIVE DATE.] This section is effective the day 2.35 following final enactment. 2.36 Sec. 2. [121A.24] [SAFE SCHOOLS; RESERVED REVENUE.] 2.37 School districts must reserve an amount of the basic 2.38 revenue under section 126C.10, subdivision 2, equal to $27 per 2.39 adjusted marginal cost pupil unit in fiscal year 2007 and 2.40 later. The amount reserved under this section must be used for 2.41 the purposes allowed under Minnesota Statutes 2004, section 2.42 126C.44, including to pay for school counselors, school social 2.43 workers, school nurses, and school psychologists. 2.44 Sec. 3. Minnesota Statutes 2004, section 123A.05, 2.45 subdivision 2, is amended to read: 3.1 Subd. 2. [RESERVE REVENUE.] Each district that is a member 3.2 of an area learning center must reserve revenue in an amount 3.3 equal to the sum of (1) at least 90 percent of the district 3.4 average general education revenue per pupil unit minus an amount 3.5 equal to the product of the formula allowance according to 3.6 section 126C.10, subdivision 2, times .0485 for fiscal year 2006 3.7 and .0458 for fiscal year 2007 and later, calculated without 3.8 basic skills revenue,and transportation sparsity revenue,and3.9the transportation portion of the transition revenue adjustment,3.10 times the number of pupil units attending an area learning 3.11 center program under this section, plus (2) the amount of basic 3.12 skills revenue generated by pupils attending the area learning 3.13 center. The amount of reserved revenue under this subdivision 3.14 may only be spent on program costs associated with the area 3.15 learning center. Compensatory revenue must be allocated 3.16 according to section 126C.15, subdivision 2. 3.17 [EFFECTIVE DATE.] This section is effective for revenue for 3.18 fiscal year 2007. 3.19 Sec. 4. Minnesota Statutes 2004, section 123B.49, 3.20 subdivision 4, is amended to read: 3.21 Subd. 4. [BOARD CONTROL OF EXTRACURRICULAR ACTIVITIES.] 3.22 (a) The board may take charge of and control all extracurricular 3.23 activities of the teachers and children of the public schools in 3.24 the district. Extracurricular activities means all direct and 3.25 personal services for pupils for their enjoyment that are 3.26 managed and operated under the guidance of an adult or staff 3.27 member. The board shall allow all resident pupils receiving 3.28 instruction in a home school as defined in section 123B.36, 3.29 subdivision 1, paragraph (a), to be eligible to fully 3.30 participate in extracurricular activities on the same basis as 3.31 public school students. 3.32 (b) Extracurricular activities have all of the following 3.33 characteristics: 3.34 (1) they are not offered for school credit nor required for 3.35 graduation; 3.36 (2) they are generally conducted outside school hours, or 4.1 if partly during school hours, at times agreed by the 4.2 participants, and approved by school authorities; 4.3 (3) the content of the activities is determined primarily 4.4 by the pupil participants under the guidance of a staff member 4.5 or other adult. 4.6 (c) If the board does not take charge of and control 4.7 extracurricular activities, these activities shall be 4.8 self-sustaining with all expenses, except direct salary costs 4.9 and indirect costs of the use of school facilities, met by dues, 4.10 admissions, or other student fund-raising events. The general 4.11 fund must reflect only those salaries directly related to and 4.12 readily identified with the activity and paid by public funds. 4.13 Other revenues and expenditures for extra curricular activities 4.14 must be recorded according to the"Manual of Instruction for4.15Uniform Student Activities Accounting for Minnesota School4.16Districts and Area Vocational-Technical Colleges."Manual for 4.17 Activity Fund Accounting. Extracurricular activities not under 4.18 board control must have an annual financial audit and must also 4.19 be audited annually for compliance with this section. 4.20 (d) If the board takes charge of and controls 4.21 extracurricular activities, any or all costs of these activities 4.22 may be provided from school revenues and all revenues and 4.23 expenditures for these activities shall be recorded in the same 4.24 manner as other revenues and expenditures of the district. 4.25 (e) If the board takes charge of and controls 4.26 extracurricular activities, the teachers or pupils in the 4.27 district must not participate in such activity, nor shall the 4.28 school name or any allied name be used in connection therewith, 4.29 except by consent and direction of the board. 4.30 Sec. 5. Minnesota Statutes 2004, section 123B.53, 4.31 subdivision 1, is amended to read: 4.32 Subdivision 1. [DEFINITIONS.] (a) For purposes of this 4.33 section, the eligible debt service revenue of a district is 4.34 defined as follows: 4.35 (1) the amount needed to produce between five and six 4.36 percent in excess of the amount needed to meet when due the 5.1 principal and interest payments on the obligations of the 5.2 district for eligible projects according to subdivision 2, 5.3 including the amounts necessary for repayment of energy loans 5.4 according to section 216C.37 or sections 298.292 to 298.298, 5.5 debt service loans and capital loans, lease purchase payments 5.6 under section 126C.40, subdivision 2, alternative facilities 5.7 levies under section 123B.59, subdivision 5, minus 5.8 (2) the amount of debt service excess levy reduction for 5.9 that school year calculated according to the procedure 5.10 established by the commissioner. 5.11 (b) The obligations in this paragraph are excluded from 5.12 eligible debt service revenue: 5.13 (1) obligations under section 123B.61; 5.14 (2) the part of debt service principal and interest paid 5.15 from the taconite environmental protection fund or northeast 5.16 Minnesota economic protection trust; 5.17 (3) obligations issued under Laws 1991, chapter 265, 5.18 article 5, section 18, as amended by Laws 1992, chapter 499, 5.19 article 5, section 24; and 5.20 (4) obligations under section 123B.62. 5.21 (c) For purposes of this section, if a preexisting school 5.22 district reorganized under sections 123A.35 to 123A.43, 123A.46, 5.23 and 123A.48 is solely responsible for retirement of the 5.24 preexisting district's bonded indebtedness, capital loans or 5.25 debt service loans, debt service equalization aid must be 5.26 computed separately for each of the preexisting districts. 5.27 (d) For purposes of this section, the adjusted net tax 5.28 capacity determined according to section 127A.48 shall be 5.29 adjusted to include a portion of the tax capacity of property 5.30 generally exempted from ad valorem taxes under section 272.02, 5.31 subdivisions 64 and 65, equal to the product of that tax 5.32 capacity times the ratio of the eligible debt service revenue 5.33 attributed to general obligation bonds to the total eligible 5.34 debt service revenue of the district. 5.35 Sec. 6. Minnesota Statutes 2004, section 123B.75, is 5.36 amended by adding a subdivision to read: 6.1 Subd. 4a. [TACONITE REVENUE.] Taconite revenue received in 6.2 a calendar year by a school district under section 298.28, 6.3 subdivisions 4, paragraphs (b) and (c), and 11, paragraph (d), 6.4 is fully recognized in the fiscal year in which the February 6.5 payment falls. 6.6 Sec. 7. Minnesota Statutes 2004, section 123B.76, 6.7 subdivision 3, is amended to read: 6.8 Subd. 3. [EXPENDITURES BY BUILDING.] (a) For the purposes 6.9 of this section, "building" means education site as defined in 6.10 section 123B.04, subdivision 1. 6.11 (b) Each district shall maintain separate accounts to 6.12 identify general fund expenditures, excluding capital6.13expenditures and pupil transportation,for each building. All 6.14 expenditures for regular instruction, secondary vocational 6.15 instruction, and school administration must be reported to the 6.16 department separately for each building. All expenditures for 6.17 special education instruction, instructional support services, 6.18 and pupil support services provided within a specific building 6.19 must be reported to the department separately for each 6.20 building. Salary expenditures reported by building must reflect 6.21 actual salaries for staff at the building and must not be based 6.22 on districtwide averages. All other general fund expenditures 6.23 may be reported by building or on a districtwide basis. 6.24 (c) The department must annually report information showing 6.25 school district general fund expenditures per pupil by program 6.26 category for each building and estimated school district general 6.27 fund revenue generated by pupils attending each building on its 6.28 Web site. For purposes of this report: 6.29 (1) expenditures notrequired to bereported by building 6.30 shall be allocated among buildings on a uniform per pupil basis; 6.31 (2) basic skills revenue shall be allocated according to 6.32 section 126C.10, subdivision 4; 6.33 (3) secondary sparsity revenue and elementary sparsity 6.34 revenue shall be allocated according to section 126C.10, 6.35 subdivisions 7 and 8; 6.36 (4) other general education revenue shall be allocated on a 7.1 uniform per pupil unit basis; 7.2 (5) first grade preparedness aid shall be allocated 7.3 according to section 124D.081; 7.4 (6) state and federal special education aid and Title I aid 7.5 shall be allocated in proportion to district expenditures for 7.6 these programs by building; and 7.7 (7) other general fund revenues shall be allocated on a 7.8 uniform per pupil basis, except that the department may allocate 7.9 other revenues attributable to specific buildings directly to 7.10 those buildings. 7.11 Sec. 8. Minnesota Statutes 2004, section 123B.79, 7.12 subdivision 6, is amended to read: 7.13 Subd. 6. [ACCOUNT TRANSFER FOR STATUTORY OPERATING DEBT.] 7.14 On June 30 of each year, a district may make a permanent 7.15 transfer from the general fund account entitled "undesignated7.16 net unreserved general fund balance since statutory operating 7.17 debt" to the account entitled "reserved fund balance reserve 7.18 account for purposes of statutory operating debt reduction." 7.19 The amount of the transfer is limited to the lesser of (a) the 7.20 netundesignated operatingunreserved general fund balance, or 7.21 (b) the sum of the remaining statutory operating debt levies 7.22 authorized for all future years according to section 126C.42, 7.23 subdivision 1. If the netundesignated operatingunreserved 7.24 general fund balance is less than zero, the district may not 7.25 make a transfer. 7.26 Sec. 9. Minnesota Statutes 2004, section 123B.81, 7.27 subdivision 1, is amended to read: 7.28 Subdivision 1. [OPERATING DEBT.] The "operating debt" of a 7.29 school district means the net negativeundesignatedunreserved 7.30 general fund balancein all school district funds, other than7.31capital expenditure, building construction, debt service, and7.32trust and agency,calculated as of June 30 of each year in 7.33 accordance with the uniform financial accounting and reporting 7.34 standards for Minnesota school districts. 7.35 Sec. 10. Minnesota Statutes 2004, section 123B.82, is 7.36 amended to read: 8.1 123B.82 [REORGANIZATION OPERATING DEBT.] 8.2 The "reorganization operating debt" of a school district 8.3 means the net negativeundesignatedunreserved general fund 8.4balancebalances in all school district funds, other than 8.5 building construction, debt redemption, and trust and agency, 8.6 calculated in accordance with the uniform financial accounting 8.7 and reporting standards for Minnesota school districts as of: 8.8 (1) June 30 of the fiscal year before the first year that a 8.9 district receives revenue according to section 123A.39, 8.10 subdivision 3; or 8.11 (2) June 30 of the fiscal year before the effective date of 8.12 reorganization according to section 123A.46 or 123A.48. 8.13 Sec. 11. Minnesota Statutes 2004, section 123B.83, 8.14 subdivision 2, is amended to read: 8.15 Subd. 2. [UNDESIGNATEDNET UNRESERVED GENERAL FUND 8.16 BALANCES.]Beginning in fiscal year 1978 and each year8.17thereafter, anyA school districtnot subject to the provisions8.18of subdivision 1must limit its expenditures so that 8.19 itsundesignatednet unreserved general fundbalances dobalance 8.20 does not constitute statutory operating debt as defined in 8.21 section 126C.42. 8.22 Sec. 12. Minnesota Statutes 2004, section 123B.92, 8.23 subdivision 5, is amended to read: 8.24 Subd. 5. [DISTRICT REPORTS.] (a) Each district must report 8.25 data to the department as required by the department to account 8.26 for transportation expenditures. 8.27 (b) Salaries and fringe benefits of district employees 8.28 whose primary duties are other than transportation, including 8.29 central office administrators and staff, building administrators 8.30 and staff, teachers, social workers, school nurses, and 8.31 instructional aides, must not be included in a district's 8.32 transportation expenditures, except that a district may include 8.33 salaries and benefits according to paragraph (c) for (1) an 8.34 employee designated as the district transportation director, (2) 8.35 an employee providing direct support to the transportation 8.36 director, or (3) an employee providing direct transportation 9.1 services such as a bus driver or bus aide. 9.2 (c) Salaries and fringe benefits of other district 9.3 employees who work part-time in transportation and part-time in 9.4 other areas must not be included in a district's transportation 9.5 expenditures unless the district maintains documentation of the 9.6 employee's time spent on pupil transportation matters in the 9.7 form and manner prescribed by the department. 9.8 (d) Pupil transportation expenditures, excluding 9.9 expenditures for capital outlay, leased buses, student board and 9.10 lodging, crossing guards, and aides on buses, must be allocated 9.11 among transportation categories based on a cost per mile, cost 9.12 per student, cost per hour, or cost per route, regardless of 9.13 whether the transportation services are provided on 9.14 district-owned or contractor-owned school buses. Expenditures 9.15 for school bus driver salaries and fringe benefits may either be 9.16 directly charged to the appropriate transportation category or 9.17 may be allocated among transportation categories on a cost per 9.18 mile, cost per student basis, cost per hour, or cost per route. 9.19 Expenditures by private contractors or individuals who provide 9.20 transportation exclusively in one transportation category must 9.21 be charged directly to the appropriate transportation category. 9.22 Transportation services provided by contractor-owned school bus 9.23 companies incorporated under different names but owned by the 9.24 same individual or group of individuals must be treated as the 9.25 same company for cost allocation purposes. 9.26 [EFFECTIVE DATE.] This section is effective for expenditure 9.27 reporting for fiscal year 2006 and later. 9.28 Sec. 13. Minnesota Statutes 2004, section 124D.11, 9.29 subdivision 1, is amended to read: 9.30 Subdivision 1. [GENERAL EDUCATION REVENUE.] (a) For fiscal 9.31 year 2006, general education revenue must be paid to a charter 9.32 school as though it were a district. The general education 9.33 revenue for each adjusted marginal cost pupil unit is the state 9.34 average general education revenue per pupil unit, plus the 9.35 referendum equalization aid allowance in the pupil's district of 9.36 residence, minus an amount equal to the product of the formula 10.1 allowance according to section 126C.10, subdivision 2, times 10.2 .0485, calculated without basic skills revenue, extended time 10.3 revenue, transition revenue, and transportation sparsity 10.4 revenue, plus basic skills revenue, extended time revenue, and 10.5 transition revenue as though the school were a school district. 10.6 The general education revenue for each extended time marginal 10.7 cost pupil unit equals $4,378. 10.8 (b) For fiscal year 2007 and later, general education 10.9 revenue must be paid to a charter school as though it were a 10.10 district. The general education revenue for each adjusted 10.11 marginal cost pupil unit is the state average general education 10.12 revenue per pupil unit, plus the referendum equalization aid 10.13 allowance in the pupil's district of residence, minus an amount 10.14 equal to the product of the formula allowance according to 10.15 section 126C.10, subdivision 2, times .0458, calculated without 10.16 basic skills revenue, extended time revenue, and transportation 10.17 sparsity revenue, plus basic skills revenue and extended time 10.18 revenue as though the school were a school district. The 10.19 general education revenue for each extended time marginal cost 10.20 pupil unit equals $4,391. Each year, a charter school must also 10.21 be paid an amount equal to its 2004 transition revenue allowance 10.22 multiplied times its adjusted marginal cost pupil units for the 10.23 current year. 10.24 (c) Notwithstandingparagraphparagraphs (a) and (b), for 10.25 charter schools in the first year of operation, general 10.26 education revenue shall be computed using the number of adjusted 10.27 pupil units in the current fiscal year. 10.28 Sec. 14. Minnesota Statutes 2004, section 124D.11, 10.29 subdivision 2, is amended to read: 10.30 Subd. 2. [TRANSPORTATION REVENUE.] Transportation revenue 10.31 must be paid to a charter school that provides transportation 10.32 services according to section 124D.10, subdivision 16, according 10.33 to this subdivision. Transportation aid shall equal 10.34 transportation revenue. 10.35 In addition to the revenue under subdivision 1, for fiscal 10.36 year 2006 a charter school providing transportation services 11.1 must receive general education aidfor each pupil unitequal to 11.2 the sum of the product of (1) an amount equal to the product of 11.3 the formula allowance according to section 126C.10, subdivision 11.4 2, times .0485 in fiscal years 2005 and 2006 and .0458 in fiscal 11.5 years 2007 and later, plus the transportation sparsity allowance 11.6 for the school district in which the charter school is located, 11.7 times (2) the adjusted marginal cost pupil units, plus the 11.8 product of $223 times the extended time marginal cost pupil 11.9 units. 11.10 In addition to the revenue under subdivision 1, for fiscal 11.11 year 2007 and later, a charter school providing transportation 11.12 services must receive general education aid equal to the sum of 11.13 the product of (1) the formula allowance according to section 11.14 126C.10, subdivision 2, times .0458, plus the transportation 11.15 sparsity allowance for the school district in which the charter 11.16 school is located, times (2) the adjusted marginal cost pupil 11.17 units, plus the product of $210 times the extended time marginal 11.18 cost pupil units. 11.19 Sec. 15. Minnesota Statutes 2004, section 124D.11, 11.20 subdivision 6, is amended to read: 11.21 Subd. 6. [OTHER AID, GRANTS, REVENUE.] (a) A charter 11.22 school is eligible to receive other aids, grants, and revenue 11.23 according to chapters 120A to 129C, as though it were a district. 11.24 (b) Notwithstanding paragraph (a), a charter school may not 11.25 receive aid, a grant, or revenue other than general education 11.26 revenue if a levy is required to obtain the money, except as 11.27 otherwise provided in this section. 11.28 (c) Federal aid received by the state must be paid to the 11.29 school, if it qualifies for the aid as though it were a school 11.30 district. 11.31 (d) A charter school may receive money from any source for 11.32 capital facilities needs. In the year-end report to the 11.33 commissioner of education, the charter school shall report the 11.34 total amount of funds received from grants and other outside 11.35 sources. 11.36 Sec. 16. Minnesota Statutes 2004, section 124D.68, 12.1 subdivision 9, is amended to read: 12.2 Subd. 9. [ENROLLMENT VERIFICATION.] (a) For a pupil 12.3 attending an eligible program full time under subdivision 3, 12.4 paragraph (d), the department must pay 90 percent of the 12.5 district's average general education revenue less basic skills 12.6 revenue to the eligible program and ten percent of the 12.7 district's average general education revenue less basic skills 12.8 revenue to the contracting district within 30 days after the 12.9 eligible program verifies enrollment using the form provided by 12.10 the department. For a pupil attending an eligible program part 12.11 time, revenue, excluding compensatory revenue, shall be reduced 12.12 proportionately, according to the amount of time the pupil 12.13 attends the program, and the payments to the eligible program 12.14 and the contracting district shall be reduced accordingly. A 12.15 pupil for whom payment is made according to this section may not 12.16 be counted by any district for any purpose other than 12.17 computation of general education revenue. If payment is made 12.18 for a pupil under this subdivision, a district shall not 12.19 reimburse a program under section 124D.69 for the same 12.20 pupil. The basic skills revenueshall be paidgenerated by 12.21 pupils attending the eligible program according to section 12.22 126C.10, subdivision 4, shall be paid to the eligible program. 12.23 (b) The department must pay up to 100 percent of the 12.24 revenue to the eligible program if there is an agreement to that 12.25 effect between the school district and the eligible program. 12.26 (c) Notwithstanding paragraphs (a) and (b), for an eligible 12.27 program that provides chemical treatment services to students, 12.28 the department must pay 100 percent of the revenue to the 12.29 eligible program. 12.30 Sec. 17. Minnesota Statutes 2004, section 124D.69, 12.31 subdivision 1, is amended to read: 12.32 Subdivision 1. [AID.] If a pupil enrolls in an alternative 12.33 program, eligible under section 124D.68, subdivision 3, 12.34 paragraph (d), or subdivision 4, operated by a private 12.35 organization that has contracted with a school district to 12.36 provide educational services for eligible pupils under section 13.1 124D.68, subdivision 2, the district contracting with the 13.2 private organization must reimburse the provider an amount equal 13.3 to the sum of (1) at least 95 percent of the district's average 13.4 general education less basic skills revenue per pupil unit times 13.5 the number of pupil units for pupils attending the program., and 13.6 (2) the amount of basic skills revenueshall be paidgenerated 13.7 by pupils attending the program according to section 126C.10, 13.8 subdivision 4.Compensatory revenue must be allocated according13.9to section 126C.15, subdivision 2.For a pupil attending the 13.10 program part time, the revenue paid to the program, excluding 13.11 compensatory revenue, must be reduced proportionately, according 13.12 to the amount of time the pupil attends the program, and revenue 13.13 paid to the district shall be reduced accordingly. Pupils for 13.14 whom a district provides reimbursement may not be counted by the 13.15 district for any purpose other than computation of general 13.16 education revenue. If payment is made to a district or program 13.17 for a pupil under this section, the department must not make a 13.18 payment for the same pupil under section 124D.68, subdivision 9. 13.19 Notwithstanding sections 125A.15, 125A.51, and 125A.515, general 13.20 education revenue for a student who receives educational 13.21 services under this section shall be paid according to this 13.22 section. 13.23 Sec. 18. Minnesota Statutes 2004, section 126C.01, 13.24 subdivision 11, is amended to read: 13.25 Subd. 11. [NETUNAPPROPRIATED OPERATINGUNRESERVED GENERAL 13.26 FUND BALANCE.] "Netunappropriated operatingunreserved general 13.27 fund balance" means the sum of the unreserved general fund 13.28balances in the general, food service, and community service13.29funds minus the balances reserved for statutory operating debt13.30reduction, bus purchase, severance pay, taconite, unemployment13.31benefits, maintenance levy reduction, operating capital,13.32disabled access, health and safety,balance and encumbrances, 13.33 computed as of June 30 each year. 13.34 Sec. 19. Minnesota Statutes 2004, section 126C.05, is 13.35 amended by adding a subdivision to read: 13.36 Subd. 5a. [EXTENDED TIME PUPIL UNITS.] (a) "Extended time 14.1 average daily membership for a district or charter school" means 14.2 the sum of the average daily membership according to subdivision 14.3 8, paragraph (a), minus the sum of the average daily membership 14.4 according to subdivision 8, paragraph (b), for pupils enrolled 14.5 in a learning year program under section 124D.128; an area 14.6 learning center under sections 123A.05 and 123A.06; an 14.7 alternative program under section 124D.68, subdivision 3, 14.8 paragraph (d); or section 124D.69. 14.9 (b) "Extended time pupil units for a district or charter 14.10 school" means the sum of the average daily membership in 14.11 paragraph (a) weighted according to subdivision 1 for pupils 14.12 included in the pupil unit calculations under subdivision 5, 14.13 paragraph (a). 14.14 (c) "Extended time marginal cost pupil units" means the 14.15 greater of: 14.16 (1) the sum of .77 times the pupil units defined in 14.17 paragraph (b) for the current school year and .23 times the 14.18 pupil units defined in paragraph (b) for the previous school 14.19 year; or 14.20 (2) the number of extended time pupil units defined in 14.21 paragraph (b) for the current school year. 14.22 Sec. 20. Minnesota Statutes 2004, section 126C.05, is 14.23 amended by adding a subdivision to read: 14.24 Subd. 20. [PROJECT-BASED AVERAGE DAILY MEMBERSHIP.] (a) To 14.25 receive general education revenue for a pupil enrolled in a 14.26 public school with a project-based program, a school must meet 14.27 the requirements in this paragraph. The school must: 14.28 (1) register with the commissioner as a project-based 14.29 program by May 30 of the preceding fiscal year; 14.30 (2) provide a minimum teacher contact of no less than one 14.31 hour per week per project-based credit for each pupil; 14.32 (3) maintain a record system that shows when each credit or 14.33 portion thereof was reported for membership for each pupil; and 14.34 (4) report pupil membership consistent with paragraph (b). 14.35 (b) The commissioner must develop a formula for reporting 14.36 pupil membership to compute average daily membership for each 15.1 registered project-based school. Average daily membership for a 15.2 pupil in a registered project-based program is the lesser of: 15.3 (1) 1.0; or 15.4 (2) the ratio of (i) the number of membership hours 15.5 generated by project-based credits completed during the school 15.6 year plus membership hours generated by credits completed in a 15.7 seat-based setting to (ii) the annual required instructional 15.8 hours at that grade level. Membership hours for a partially 15.9 completed project-based credit must be prorated. 15.10 Sec. 21. Minnesota Statutes 2004, section 126C.10, 15.11 subdivision 1, is amended to read: 15.12 Subdivision 1. [GENERAL EDUCATION REVENUE.] (a)For fiscal15.13year 2003, the general education revenue for each district15.14equals the sum of the district's basic revenue, basic skills15.15revenue, training and experience revenue, secondary sparsity15.16revenue, elementary sparsity revenue, transportation sparsity15.17revenue, total operating capital revenue, and equity revenue.15.18(b)For fiscal year2004 and later2006, the general 15.19 education revenue for each district equals the sum of the 15.20 district's basic revenue, extended time revenue, basic skills 15.21 revenue, training and experience revenue, secondary sparsity 15.22 revenue, elementary sparsity revenue, transportation sparsity 15.23 revenue, total operating capital revenue, equity revenue, and 15.24 transition revenue. 15.25 (b) For fiscal year 2007 and later, the general education 15.26 revenue for each district equals the sum of the district's basic 15.27 revenue, extended time revenue, basic skills revenue, training 15.28 and experience revenue, secondary sparsity revenue, elementary 15.29 sparsity revenue, transportation sparsity revenue, total 15.30 operating capital revenue, and equity revenue. 15.31 Sec. 22. Minnesota Statutes 2004, section 126C.10, 15.32 subdivision 2, is amended to read: 15.33 Subd. 2. [BASIC REVENUE.] The basic revenue for each 15.34 district equals the formula allowance times the adjusted 15.35 marginal cost pupil units for the school year. The formula 15.36 allowance for fiscal year20012005 is$3,964$4,601. The 16.1 formula allowance for fiscal year20022006 is$4,068$4,832. 16.2 The formula allowance for fiscal year20032007 and subsequent 16.3 years is$4,601$5,053. 16.4 Sec. 23. Minnesota Statutes 2004, section 126C.10, 16.5 subdivision 13, is amended to read: 16.6 Subd. 13. [TOTAL OPERATING CAPITAL REVENUE.] (a) For 16.7 fiscal year 2000 and thereafter, total operating capital revenue 16.8 for a district equals the amount determined under paragraph (b) 16.9 or (c), plus $73 times the adjusted marginal cost pupil units 16.10 for the school year. The revenue must be placed in a reserved 16.11 account in the general fund and may only be used according to 16.12 paragraph (d) or subdivision 14. 16.13 (b) For fiscal years 2000 and later, capital revenue for a 16.14 district equals $100 times the district's maintenance cost index 16.15 times its adjusted marginal cost pupil units for the school year. 16.16 (c) For fiscal years 2000 and later, the revenue for a 16.17 district that operates a program under section 124D.128, is 16.18 increased by an amount equal to $30 times the number of marginal 16.19 cost pupil units served at the site where the program is 16.20 implemented. 16.21(d) For fiscal years 2001, 2002, and 2003, the district16.22must reserve an amount equal to $5 per adjusted marginal cost16.23pupil unit for telecommunication access costs. Reserve revenue16.24under this paragraph must first be used to pay for ongoing or16.25recurring telecommunication access costs, including access to16.26data and video connections, including Internet access. Any16.27revenue remaining after covering all ongoing or recurring access16.28costs may be used for computer hardware or equipment.16.29 Sec. 24. Minnesota Statutes 2004, section 126C.10, 16.30 subdivision 13a, is amended to read: 16.31 Subd. 13a. [OPERATING CAPITAL LEVY.] To obtain operating 16.32 capital revenue for fiscalyearyears 2005 andlater2006, a 16.33 district may levy an amount not more than the product of its 16.34 operating capital revenue for the fiscal year times the lesser 16.35 of one or the ratio of its adjusted net tax capacity per 16.36 adjusted marginal cost pupil unit to $22,222. 17.1 Sec. 25. Minnesota Statutes 2004, section 126C.10, 17.2 subdivision 13b, is amended to read: 17.3 Subd. 13b. [OPERATING CAPITAL AID.] For fiscal years 2005 17.4 and 2006, a district's operating capital aid equals its 17.5 operating capital revenue minus its operating capital levy times 17.6 the ratio of the actual amount levied to the permitted levy. 17.7 Sec. 26. Minnesota Statutes 2004, section 126C.10, 17.8 subdivision 18, is amended to read: 17.9 Subd. 18. [TRANSPORTATION SPARSITY REVENUE ALLOWANCE.] (a) 17.10 For fiscal year 2006, a district's transportation sparsity 17.11 allowance equals the greater of zero or the result of the 17.12 following computation: 17.13(i)(1) multiply the formula allowance according to 17.14 subdivision 2, by .1469.; 17.15(ii)(2) multiply the result in clause(i)(1) by the 17.16 district's sparsity index raised to the 26/100 power.; 17.17(iii)(3) multiply the result in clause(ii)(2) by the 17.18 district's density index raised to the 13/100 power.; 17.19(iv)(4) multiply the formula allowance according to 17.20 subdivision 2, by .0485.; and 17.21(v)(5) subtract the result in clause(iv)(4) from the 17.22 result in clause(iii)(3). 17.23 (b) For fiscal year 2007 and later, a district's 17.24 transportation sparsity allowance equals the greater of zero or 17.25 the result of the following computation: 17.26 (1) multiply the formula allowance according to subdivision 17.27 2 by .1469; 17.28 (2) multiply the result in clause (1) by the district's 17.29 sparsity index raised to the 28/100 power; 17.30 (3) multiply the result in clause (2) by the district's 17.31 density index raised to the 13/100 power; 17.32 (4) multiply the formula allowance according to subdivision 17.33 2 by .0458; and 17.34 (5) subtract the result in clause (4) from the result in 17.35 clause (3). 17.36 (c) Transportation sparsity revenue is equal to the 18.1 transportation sparsity allowance times the adjusted marginal 18.2 cost pupil units. 18.3 (d) Transportation sparsity revenue is equal to the 18.4 transportation sparsity allowance times the adjusted marginal 18.5 cost pupil units. 18.6 Sec. 27. Minnesota Statutes 2004, section 126C.10, 18.7 subdivision 24, is amended to read: 18.8 Subd. 24. [EQUITY REVENUE.] (a) A school district 18.9 qualifies for equity revenue if: 18.10 (1) the school district's adjusted marginal cost pupil unit 18.11 amount of basic revenue, supplemental revenue, transition18.12revenue,and referendum revenue is less than the value of the 18.13 school district at or immediately above the 95th percentile of 18.14 school districts in its equity region for those revenue 18.15 categories; and 18.16 (2) the school district's administrative offices are not 18.17 located in a city of the first class on July 1, 1999. 18.18 (b) Equity revenue for a qualifying district that receives 18.19 referendum revenue under section 126C.17, subdivision 4, equals 18.20 the product of (1) the district's adjusted marginal cost pupil 18.21 units for that year; times (2) the sum of (i) $13, plus (ii) 18.22 $75, times the school district's equity index computed under 18.23 subdivision 27. 18.24 (c) Equity revenue for a qualifying district that does not 18.25 receive referendum revenue under section 126C.17, subdivision 4, 18.26 equals the product of the district's adjusted marginal cost 18.27 pupil units for that year times $13. 18.28 (d) For fiscal year 2007 and later, referendum revenue for 18.29 the purpose of this section does not include referendum 18.30 conversion allowance authority transferred to the referendum 18.31 allowance in fiscal year 2007 under section 126C.17, subdivision 18.32 13, by the vote of a school board. Referendum conversion 18.33 allowance authority added to the referendum allowance under 18.34 section 126C.17, subdivision 1, shall be included in the 18.35 referendum for the purposes of this section if a school district 18.36 reauthorizes the revenue at an election according to section 19.1 126C.17, subdivision 9. 19.2 Sec. 28. Minnesota Statutes 2004, section 126C.10, 19.3 subdivision 29, is amended to read: 19.4 Subd. 29. [EQUITY LEVY.] To obtain equity revenue for 19.5 fiscalyearyears 2005 andlater2006, a district may levy an 19.6 amount not more than the product of its equity revenue for the 19.7 fiscal year times the lesser of one or the ratio of its 19.8 referendum market value per resident marginal cost pupil unit to 19.9 $476,000. 19.10 Sec. 29. Minnesota Statutes 2004, section 126C.10, 19.11 subdivision 30, is amended to read: 19.12 Subd. 30. [EQUITY AID.] For fiscal years 2005 and 2006, a 19.13 district's equity aid equals its equity revenue minus its equity 19.14 levy times the ratio of the actual amount levied to the 19.15 permitted levy. 19.16 Sec. 30. Minnesota Statutes 2004, section 126C.10, 19.17 subdivision 31, is amended to read: 19.18 Subd. 31. [TRANSITION REVENUE.] (a) A district's 19.19 transition allowance for fiscal years 2004 through20082006 19.20 equals the greater of zero or the product of the ratio of the 19.21 number of adjusted marginal cost pupil units the district would 19.22 have counted for fiscal year 2004 under Minnesota Statutes 2002 19.23 to the district's adjusted marginal cost pupil units for fiscal 19.24 year 2004, times the difference between: (1) the lesser of the 19.25 district's general education revenue per adjusted marginal cost 19.26 pupil unit for fiscal year 2003 or the amount of general 19.27 education revenue the district would have received per adjusted 19.28 marginal cost pupil unit for fiscal year 2004 according to 19.29 Minnesota Statutes 2002, and (2) the district's general 19.30 education revenue for fiscal year 2004 excluding transition 19.31 revenue divided by the number of adjusted marginal cost pupil 19.32 units the district would have counted for fiscal year 2004 under 19.33 Minnesota Statutes 2002. A district's transition allowance for 19.34 fiscal year20092007 and later is zero. 19.35 (b) A district's transition revenue for fiscalyearyears 19.36 2004 andlater2005 equals the product of the district's 20.1 transition allowance times the district's adjusted marginal cost 20.2 pupil units. 20.3 (c) A district's transition revenue for fiscal year 2006 20.4 equals the sum of (1) the product of the district's transition 20.5 allowance times the district's adjusted marginal cost pupil 20.6 units, plus (2) the amount of referendum revenue under section 20.7 126C.17 and general education revenue, excluding transition 20.8 revenue, for fiscal year 2004 attributable to pupils four or 20.9 five years of age on September 1, 2003, enrolled in a 20.10 prekindergarten program implemented by the district before July 20.11 1, 2003, and reported as kindergarten pupils under section 20.12 126C.05, subdivision 1, for fiscal year 2004 multiplied times 20.13 0.01, plus (3) the amount of compensatory education revenue 20.14 under subdivision 3 for fiscal year 2005 attributable to pupils 20.15 four years of age on September 1, 2003, enrolled in a 20.16 prekindergarten program implemented by the district before July 20.17 1, 2003, and reported as kindergarten pupils under section 20.18 126C.05, subdivision 1, for fiscal year 2004 multiplied times 20.19 0.01. 20.20 Sec. 31. Minnesota Statutes 2004, section 126C.10, 20.21 subdivision 32, is amended to read: 20.22 Subd. 32. [TRANSITION LEVY.] To obtain transition revenue 20.23 for fiscalyearyears 2005 andlater2006, a district may levy 20.24 an amount not more than the product of its transition revenue 20.25 for the fiscal year times the lesser of one or the ratio of its 20.26 referendum market value per resident marginal cost pupil unit to 20.27 $476,000. 20.28 Sec. 32. Minnesota Statutes 2004, section 126C.10, 20.29 subdivision 33, is amended to read: 20.30 Subd. 33. [TRANSITION AID.] (a) For fiscal year 2004, a 20.31 district's transition aid equals its transition revenue. 20.32 (b) For fiscalyearyears 2005 andlater2006, a district's 20.33 transition aid equals its transition revenue minus its 20.34 transition levy times the ratio of the actual amount levied to 20.35 the permitted levy. 20.36 Sec. 33. Minnesota Statutes 2004, section 126C.13, is 21.1 amended by adding a subdivision to read: 21.2 Subd. 3a. [CONSOLIDATED TAX RATE.] The commissioner must 21.3 establish the consolidated tax rate by July 1 of each year for 21.4 levies payable in the following year. The consolidated tax 21.5 capacity rate must be a rate, rounded up to the nearest 21.6 hundredth of a percent, that, when applied to the adjusted net 21.7 tax capacity for all districts, raises the amount specified in 21.8 this subdivision. The consolidated tax rate must be the rate 21.9 that raises $99,172,300 for fiscal year 2007, $110,770,300 for 21.10 fiscal year 2008, and $122,380,100 for fiscal year 2009 and 21.11 later years. The consolidated tax rate may not be changed due 21.12 to changes or corrections made to a district's adjusted net tax 21.13 capacity after the tax rate has been established. 21.14 Sec. 34. Minnesota Statutes 2004, section 126C.13, is 21.15 amended by adding a subdivision to read: 21.16 Subd. 3b. [CONSOLIDATED LEVY.] To obtain general education 21.17 revenue, a district may levy an amount not to exceed the 21.18 consolidated tax rate times the adjusted net tax capacity of the 21.19 district for the preceding year. If the amount of the 21.20 consolidated levy would exceed the general education revenue, 21.21 the consolidated levy must be determined according to 21.22 subdivision 3c. 21.23 Sec. 35. Minnesota Statutes 2004, section 126C.13, is 21.24 amended by adding a subdivision to read: 21.25 Subd. 3c. [CONSOLIDATED LEVY; DISTRICTS OFF THE 21.26 FORMULA.] If the amount of the consolidated levy for a district 21.27 exceeds the district's general education revenue, the amount of 21.28 the consolidated levy must be limited to the following: 21.29 (1) the district's general education revenue; minus 21.30 (2) payments made for the same school year according to 21.31 section 126C.21, subdivision 3. 21.32 For purposes of statutory cross-reference, a levy made 21.33 according to this subdivision shall be construed to be the levy 21.34 made according to subdivision 3b. 21.35 Sec. 36. Minnesota Statutes 2004, section 126C.13, 21.36 subdivision 4, is amended to read: 22.1 Subd. 4. [GENERAL EDUCATION AID.] (a)For fiscal year22.22004, a district's general education aid is the sum of the22.3following amounts:22.4(1) general education revenue;22.5(2) shared time aid according to section 126C.01,22.6subdivision 7;22.7(3) referendum aid according to section 126C.17; and22.8(4) online learning aid according to section 126C.24.22.9(b)For fiscalyearyears 2005 andlater2006, a 22.10 district's general education aid is the sum of the following 22.11 amounts: 22.12 (1) general education revenue, excluding equity revenue, 22.13 total operating capital, and transition revenue; 22.14 (2) operating capital aid according to section 126C.10, 22.15 subdivision 13b; 22.16 (3) equity aid according to section 126C.10, subdivision 22.17 30; 22.18 (4) transition aid according to section 126C.10, 22.19 subdivision 33; 22.20 (5) shared time aid according to section 126C.01, 22.21 subdivision 7; 22.22 (6) referendum aid according to section 126C.17; and 22.23 (7) online learning aid according to section126C.2422.24 124D.0962. 22.25 (b) For fiscal year 2007 and later, a district's general 22.26 education aid is the sum of the following amounts: 22.27 (1) the product of: 22.28 (i) the difference between the general education revenue 22.29 and the consolidated levy; times 22.30 (ii) the ratio of the actual amount levied to the permitted 22.31 levy; 22.32 (2) shared time aid according to section 126C.01, 22.33 subdivision 7; 22.34 (3) referendum aid according to section 126C.17; and 22.35 (4) online learning aid according to section 126C.24. 22.36 Sec. 37. Minnesota Statutes 2004, section 126C.17, 23.1 subdivision 1, is amended to read: 23.2 Subdivision 1. [REFERENDUM ALLOWANCE.] (a) For fiscal year 23.320032006 and later, a district's initial referendum revenue 23.4 allowance equals the sum of the allowance under section 126C.16, 23.5 subdivision 2, plus any additional allowance per resident 23.6 marginal cost pupil unit authorized under subdivision 9 before 23.7 May 1, 2001, for fiscal year 2002 and later, plus the referendum 23.8 conversion allowance approved under subdivision 13, minus $415. 23.9 For districts with more than one referendum authority, the 23.10 reduction must be computed separately for each authority. The 23.11 reduction must be applied first to the referendum conversion 23.12 allowance and next to the authority with the earliest expiration 23.13 date. A district's initial referendum revenue allowance may not 23.14 be less than zero. 23.15 (b)For fiscal year 2003, a district's referendum revenue23.16allowance equals the initial referendum allowance plus any23.17additional allowance per resident marginal cost pupil unit23.18authorized under subdivision 9 between April 30, 2001, and23.19December 30, 2001, for fiscal year 2003 and later.23.20(c)For fiscal year2004 and later2006, a district's 23.21 referendum revenue allowance equals the sum of: 23.22 (1) the product of (i) the ratio of the resident marginal 23.23 cost pupil units the district would have counted for fiscal year 23.24 2004 under Minnesota Statutes 2002, section 126C.05, to the 23.25 district's resident marginal cost pupil units for fiscal year 23.26 2004, times (ii) the initial referendum allowance plus any 23.27 additional allowance per resident marginal cost pupil unit 23.28 authorized under subdivision 9 between April 30, 2001, and May 23.29 30, 2003, for fiscal year 2003 and later, plus 23.30 (2) any additional allowance per resident marginal cost 23.31 pupil unit authorized under subdivision 9 after May 30, 2003, 23.32 for fiscal year 2005 and later. 23.33 (c) For fiscal year 2007 and later, a district's referendum 23.34 revenue allowance equals the sum of: (1) the referendum 23.35 allowance the district would have received for fiscal year 2007 23.36 and later under Minnesota Statutes 2004, section 126C.17, 24.1 subdivision 1, paragraph (c), based on elections held under 24.2 subdivision 9, before May 30, 2005, plus any additional 24.3 allowance per resident pupil unit authorized under subdivision 9 24.4 after May 30, 2005, plus the referendum conversion allowance 24.5 approved under subdivision 13. 24.6 Sec. 38. Minnesota Statutes 2004, section 126C.17, 24.7 subdivision 2, is amended to read: 24.8 Subd. 2. [REFERENDUM ALLOWANCE LIMIT.] (a)Notwithstanding24.9subdivision 1, for fiscal year 2003, a district's referendum24.10allowance must not exceed the greater of:24.11(1) the sum of a district's referendum allowance for fiscal24.12year 1994 times 1.162 plus its referendum conversion allowance24.13for fiscal year 2003, minus $415;24.14(2) 18.2 percent of the formula allowance;24.15(3) for a newly reorganized district created on July 1,24.162002, the referendum revenue authority for each reorganizing24.17district in the year preceding reorganization divided by its24.18resident marginal cost pupil units for the year preceding24.19reorganization, minus $415; or24.20(4) for a newly reorganized district created after July 1,24.212002, the referendum revenue authority for each reorganizing24.22district in the year preceding reorganization divided by its24.23resident marginal cost pupil units for the year preceding24.24reorganization.24.25(b)Notwithstanding subdivision 1, for fiscal year 2004 and 24.26 later, a district's referendum allowance must not exceed the 24.27 greater of: 24.28 (1) the sum of: (i) a district's referendum allowance for 24.29 fiscal year 1994 times 1.177 times the annual inflationary 24.30 increase as calculated under paragraph(c)(b) plus (ii) its 24.31 referendum conversion allowance for fiscal year 2003, minus 24.32 (iii) $415; 24.33 (2) the greater of (i) 18.6 percent of the formula 24.34 allowance or (ii) $855.79 times the annual inflationary increase 24.35 as calculated under paragraph(c)(b); or 24.36 (3) for a newly reorganized district created after July 1, 25.1 2002, the referendum revenue authority for each reorganizing 25.2 district in the year preceding reorganization divided by its 25.3 resident marginal cost pupil units for the year preceding 25.4 reorganization. 25.5(c)(b) For purposes of this subdivision, for fiscal year 25.6 2005 and later, "inflationary increase" means one plus the 25.7 percentage change in the Consumer Price Index for urban 25.8 consumers, as prepared by the United States Bureau of Labor 25.9 Standards, for the current fiscal year to fiscal year 2004. For 25.10 fiscal years 2009 and later, for purposes of paragraph (b), 25.11 clause (1), the inflationary increase equals the inflationary 25.12 increase for fiscal year 2008 plus one-fourth of the percentage 25.13 increase in the formula allowance for that year compared with 25.14 the formula allowance for fiscal year 2008. 25.15 Sec. 39. Minnesota Statutes 2004, section 126C.17, 25.16 subdivision 5, is amended to read: 25.17 Subd. 5. [REFERENDUM EQUALIZATION REVENUE.] (a) For fiscal 25.18 year 2003 and later, a district's referendum equalization 25.19 revenue equals the sum of the first tier referendum equalization 25.20 revenue and the second tier referendum equalization revenue. 25.21 (b) A district's first tier referendum equalization revenue 25.22 equals the district's first tier referendum equalization 25.23 allowance times the district's resident marginal cost pupil 25.24 units for that year. 25.25 (c)For fiscal years 2003 and 2004, a district's first tier25.26referendum equalization allowance equals the lesser of the25.27district's referendum allowance under subdivision 1 or $126.25.28 For fiscal year 2005, a district's first tier referendum 25.29 equalization allowance equals the lesser of the district's 25.30 referendum allowance under subdivision 1 or $405. For fiscal 25.31 year 2006and later, a district's first tier referendum 25.32 equalization allowance equals the lesser of the district's 25.33 referendum allowance under subdivision 1 or $500. For fiscal 25.34 year 2007 and later, a district's first tier referendum 25.35 equalization allowance equals the lesser of the district's 25.36 referendum allowance under subdivision 1 or $524. 26.1 (d) A district's second tier referendum equalization 26.2 revenue equals the district's second tier referendum 26.3 equalization allowance times the district's resident marginal 26.4 cost pupil units for that year. 26.5 (e) A district's second tier referendum equalization 26.6 allowance equals the lesser of the district's referendum 26.7 allowance under subdivision 1 or 18.6 percent of the formula 26.8 allowance, minus the district's first tier referendum 26.9 equalization allowance. 26.10 (f) Notwithstanding paragraph (e), the second tier 26.11 referendum allowance for a district qualifying for secondary 26.12 sparsity revenue under section 126C.10, subdivision 7, or 26.13 elementary sparsity revenue under section 126C.10, subdivision 26.14 8, equals the district's referendum allowance under subdivision 26.15 1 minus the district's first tier referendum equalization 26.16 allowance. 26.17 Sec. 40. Minnesota Statutes 2004, section 126C.17, 26.18 subdivision 9, is amended to read: 26.19 Subd. 9. [REFERENDUM REVENUE.] (a) The revenue authorized 26.20 by section 126C.10, subdivision 1, may be increased in the 26.21 amount approved by the voters of the district at a referendum 26.22 called for the purpose. The referendum may be called by the 26.23 board or shall be called by the board upon written petition of 26.24 qualified voters of the district. The referendum must be 26.25 conducted one or two calendar years before the increased levy 26.26 authority, if approved, first becomes payable. Only one 26.27 election to approve an increase may be held in a calendar year. 26.28 Unless the referendum is conducted by mail under paragraph (g), 26.29 the referendum must be held on the first Tuesday after the first 26.30 Monday in November. The ballot must state the maximum amount of 26.31 the increased revenue per resident marginal cost pupil unit, the 26.32 estimated referendum tax rate as a percentage of referendum 26.33 market value in the first year it is to be levied, and that the 26.34 revenue must be used to finance school operations. The ballot 26.35 may state a schedule, determined by the board, of increased 26.36 revenue per resident marginal cost pupil unit that differs from 27.1 year to year over the number of years for which the increased 27.2 revenue is authorized.If the ballot contains a schedule27.3showing different amounts, it must also indicate the estimated27.4referendum tax rate as a percent of referendum market value for27.5the amount specified for the first year and for the maximum27.6amount specified in the schedule.The ballot may state that 27.7 existing referendum levy authority is expiring. In this case, 27.8 the ballot may also compare the proposed levy authority to the 27.9 existing expiring levy authority, and express the proposed 27.10 increase as the amount, if any, over the expiring referendum 27.11 levy authority. The ballot must designate the specific number 27.12 of years, not to exceed ten, for which the referendum 27.13 authorization applies. The ballot, including a ballot on the 27.14 question to revoke or reduce the increased revenue amount under 27.15 paragraph (c), must abbreviate the term "per resident marginal 27.16 cost pupil unit" as "per pupil." The notice required under 27.17 section 275.60 may be modified to read, in cases of renewing 27.18 existing levies: 27.19 "BY VOTING "YES" ON THIS BALLOT QUESTION, YOU MAY BE VOTING 27.20 FOR A PROPERTY TAX INCREASE." 27.21 The ballot may contain a textual portion with the 27.22 information required in this subdivision and a question stating 27.23 substantially the following: 27.24 "Shall the increase in the revenue proposed by (petition 27.25 to) the board of ........., School District No. .., be approved?" 27.26 If approved, an amount equal to the approved revenue per 27.27 resident marginal cost pupil unit times the resident marginal 27.28 cost pupil units for the school year beginning in the year after 27.29 the levy is certified shall be authorized for certification for 27.30 the number of years approved, if applicable, or until revoked or 27.31 reduced by the voters of the district at a subsequent referendum. 27.32 (b) The board must prepare and deliver by first class mail 27.33 at least 15 days but no more than 30 days before the day of the 27.34 referendum to each taxpayer a notice of the referendum and the 27.35 proposed revenue increase. The board need not mail more than 27.36 one notice to any taxpayer. For the purpose of giving mailed 28.1 notice under this subdivision, owners must be those shown to be 28.2 owners on the records of the county auditor or, in any county 28.3 where tax statements are mailed by the county treasurer, on the 28.4 records of the county treasurer. Every property owner whose 28.5 name does not appear on the records of the county auditor or the 28.6 county treasurer is deemed to have waived this mailed notice 28.7 unless the owner has requested in writing that the county 28.8 auditor or county treasurer, as the case may be, include the 28.9 name on the records for this purpose. The notice must project 28.10 the anticipated amount of tax increase in annual dollars and 28.11 annual percentage for typical residential homesteads, 28.12 agricultural homesteads, apartments, and commercial-industrial 28.13 property within the school district. 28.14 The notice for a referendum may state that an existing 28.15 referendum levy is expiring and project the anticipated amount 28.16 of increase over the existing referendum levy in the first year, 28.17 if any, in annual dollars and annual percentage for typical 28.18 residential homesteads, agricultural homesteads, apartments, and 28.19 commercial-industrial property within the district. 28.20 The notice must include the following statement: "Passage 28.21 of this referendum will result in an increase in your property 28.22 taxes." However, in cases of renewing existing levies, the 28.23 notice may include the following statement: "Passage of this 28.24 referendum may result in an increase in your property taxes." 28.25 (c) A referendum on the question of revoking or reducing 28.26 the increased revenue amount authorized pursuant to paragraph 28.27 (a) may be called by the board and shall be called by the board 28.28 upon the written petition of qualified voters of the district. 28.29 A referendum to revoke or reduce the revenue amount must state 28.30 the amount per resident marginal cost pupil unit by which the 28.31 authority is to be reduced. Revenue authority approved by the 28.32 voters of the district pursuant to paragraph (a) must be 28.33 available to the school district at least once before it is 28.34 subject to a referendum on its revocation or reduction for 28.35 subsequent years. Only one revocation or reduction referendum 28.36 may be held to revoke or reduce referendum revenue for any 29.1 specific year and for years thereafter. 29.2 (d) A petition authorized by paragraph (a) or (c) is 29.3 effective if signed by a number of qualified voters in excess of 29.4 15 percent of the registered voters of the district on the day 29.5 the petition is filed with the board. A referendum invoked by 29.6 petition must be held on the date specified in paragraph (a). 29.7 (e) The approval of 50 percent plus one of those voting on 29.8 the question is required to pass a referendum authorized by this 29.9 subdivision. 29.10 (f) At least 15 days before the day of the referendum, the 29.11 district must submit a copy of the notice required under 29.12 paragraph (b) to the commissioner and to the county auditor of 29.13 each county in which the district is located. Within 15 days 29.14 after the results of the referendum have been certified by the 29.15 board, or in the case of a recount, the certification of the 29.16 results of the recount by the canvassing board, the district 29.17 must notify the commissioner of the results of the referendum. 29.18 Sec. 41. Minnesota Statutes 2004, section 126C.17, 29.19 subdivision 13, is amended to read: 29.20 Subd. 13. [REFERENDUM CONVERSION ALLOWANCE.] (a) A school 29.21 district that received supplemental or transition revenue in 29.22 fiscal year 2002 may convert its supplemental revenue conversion 29.23 allowance and transition revenue conversion allowance to 29.24 additional referendum allowance under subdivision 1 for fiscal 29.25 year 2003 and thereafter. A majority of the school board must 29.26 approve the conversion at a public meeting before November 1, 29.27 2001. For a district with other referendum authority, the 29.28 referendum conversion allowance approved by the board continues 29.29 until the portion of the district's other referendum authority 29.30 with the earliest expiration date after June 30, 2006, expires. 29.31 For a district with no other referendum authority, the 29.32 referendum conversion allowance approved by the board continues 29.33 until June 30, 2012. 29.34 (b) A school district that received transition revenue in 29.35 fiscal year 2004 may convertall or part of its transition29.36revenue to referendum revenue with voter approval in a30.1referendum called for the purpose. The referendum must be held30.2in accordance with subdivision 9, except that the ballot may30.3state that existing transition revenue authority is being30.4canceled or is expiring. In this case, the ballot shall compare30.5the proposed referendum allowance to the canceled or expiring30.6transition revenue allowance. For purposes of this comparison,30.7the canceled or expiring transition revenue allowance per30.8adjusted marginal cost pupil unit shall be converted to an30.9allowance per resident marginal cost pupil unit based on the30.10district's ratio of adjusted marginal cost pupil units to30.11resident marginal cost pupil units for the preceding fiscal30.12year. The referendum must be held on the first Tuesday after30.13the first Monday in November. The notice required under section30.14275.60 may be modified to read: "BY VOTING 'YES' ON THIS BALLOT30.15QUESTION, YOU MAY BE VOTING FOR A PROPERTY TAX INCREASE."30.16Elections under this paragraph must be held in 2007 or30.17earlier.its transition revenue 2004 conversion allowance to 30.18 additional referendum allowance under subdivision 1 for fiscal 30.19 year 2007 and thereafter. A majority of the school board must 30.20 approve the conversion at a public meeting before November 1, 30.21 2005. For a district with other referendum authority, as of 30.22 July 1, 2005, that extends beyond June 30, 2010, the referendum 30.23 conversion allowance approved by the board under this paragraph 30.24 continues until the portion of the district's other referendum 30.25 authority, as of July 1, 2005, with the earliest expiration date 30.26 after June 30, 2010, expires. For a district with no other 30.27 referendum authority, as of July 1, 2005, that extends beyond 30.28 June 30, 2010, the referendum conversion allowance approved by 30.29 the board continues until June 30, 2016. 30.30 Sec. 42. Minnesota Statutes 2004, section 126C.21, 30.31 subdivision 4, is amended to read: 30.32 Subd. 4. [TACONITE DEDUCTIONS.](1) Notwithstanding any30.33provisions of any other law to the contrary, the adjusted net30.34tax capacity used in calculating general education aid may30.35include only that property that is currently taxable in the30.36district.31.1(2)For districts thatreceived paymentshave revenue under 31.2 sections 298.018; 298.225; 229.24 to 298.28, excluding 298.26 31.3 and 298.28, subdivision 4, paragraph (d); 298.34 to 298.39; 31.4 298.391 to 298.396;and298.405; and 477A.15, any law imposing a 31.5 tax upon severed mineral values;or recognized revenue under31.6section 477A.15;the general education aid must be reduced in 31.7 the final adjustment payment by (1) thedifference between the31.8dollaramount of thepayments receivedrevenue recognized 31.9 pursuant to those sections, or revenue recognized under section31.10477A.15 infor the fiscal year to which the final adjustment is 31.11 attributableand, less (2) the amount that was calculated, 31.12 pursuant to section 126C.48, subdivision 8, as a reduction of 31.13 the levy attributable to the fiscal year to which the final 31.14 adjustment is attributable. If the final adjustment of a 31.15 district's general education aid for a fiscal year is a negative 31.16 amount because of thisclausesubdivision, the next fiscal 31.17 year's general education aid to that district must be reduced by 31.18 this negative amount in the following manner: there must be 31.19 withheld from each scheduled general education aid payment due 31.20 the district in such fiscal year, 15 percent of the total 31.21 negative amount, until the total negative amount has been 31.22 withheld. The amount reduced from general education aid 31.23 pursuant to thisclausesubdivision mustbe recognized asreduce 31.24 revenue in the fiscal year to which the final adjustment payment 31.25 is attributable. 31.26 Sec. 43. Minnesota Statutes 2004, section 126C.48, 31.27 subdivision 2, is amended to read: 31.28 Subd. 2. [NOTICE TO COMMISSIONER; FORMS.] By October 7 of 31.29 each year each district must notify the commissioner of the 31.30 proposed levies in compliance with the levy limitations of this 31.31 chapter and chapters 120B, 122A, 123A, 123B, 124D, 125A, 127A, 31.32 and 136D. By January157 of each year each district must 31.33 notify the commissioner of the final levies certified. The 31.34 commissioner shall prescribe the form of these notifications and 31.35 may request any additional information necessary to compute 31.36 certified levy amounts. 32.1 Sec. 44. Minnesota Statutes 2004, section 126C.48, 32.2 subdivision 8, is amended to read: 32.3 Subd. 8. [TACONITE PAYMENT AND OTHER REDUCTIONS.] (1) 32.4 Reductions in levies pursuant to subdivision 1 must be made 32.5 prior to the reductions in clause (2). 32.6 (2) Notwithstanding any other law to the contrary, 32.7 districtswhich received paymentsthat have revenue pursuant to 32.8 sections 298.018; 298.225; 298.24 to 298.28, except an amount 32.9 distributed undersectionsections 298.26; 298.28, subdivision 32.10 4,paragraphparagraphs (c), clause (ii), and (d); 298.34 to 32.11 298.39; 298.391 to 298.396; 298.405; 477A.15; and any law 32.12 imposing a tax upon severed mineral values; or recognized32.13revenue under section 477A.15 must not include a portion of32.14these aids in their permissible levies pursuant to those32.15sections, but insteadmust reduce thepermissiblelevies 32.16 authorized by this chapter and chapters 120B, 122A, 123A, 123B, 32.17 124A, 124D, 125A, and 127A bythe greater of the following:95 32.18 percent of the previous year's revenue specified under this 32.19 clause. 32.20(a) an amount equal to 50 percent of the total dollar32.21amount of the payments received pursuant to those sections or32.22revenue recognized under section 477A.15 in the previous fiscal32.23year; or32.24(b) an amount equal to the total dollar amount of the32.25payments received pursuant to those sections or revenue32.26recognized under section 477A.15 in the previous fiscal year32.27less the product of the same dollar amount of payments or32.28revenue times five percent.32.29For levy year 2002 only, 77 percent of the amounts32.30distributed under section 298.225 and 298.28, and 100 percent of32.31the amounts distributed under sections 298.018; 298.34 to32.32298.39; 298.391 to 298.396; 298.405; and any law imposing a tax32.33upon severed mineral values, or recognized revenue under section32.34477A.15, shall be used for purposes of the calculations under32.35this paragraph. For levy year 2003 only, the levy reductions32.36under this subdivision must be calculated as if section 298.28,33.1subdivision 4, paragraph (f), did not apply for the 200333.2distribution.33.3 (3) The amount of any voter approved referendum, facilities 33.4 down payment, and debt levies shall not be reduced by more than 33.5 50 percent under this subdivision. In administering this 33.6 paragraph, the commissioner shall first reduce the nonvoter 33.7 approved levies of a district; then, if any payments, severed 33.8 mineral value tax revenue or recognized revenue under paragraph 33.9 (2) remains, the commissioner shall reduce any voter approved 33.10 referendum levies authorized under section 126C.17; then, if any 33.11 payments, severed mineral value tax revenue or recognized 33.12 revenue under paragraph (2) remains, the commissioner shall 33.13 reduce any voter approved facilities down payment levies 33.14 authorized under section 123B.63 and then, if any payments, 33.15 severed mineral value tax revenue or recognized revenue under 33.16 paragraph (2) remains, the commissioner shall reduce any voter 33.17 approved debt levies. 33.18 (4) Before computing the reduction pursuant to this 33.19 subdivision of the health and safety levy authorized by sections 33.20 123B.57 and 126C.40, subdivision 5, the commissioner shall 33.21 ascertain from each affected school district the amount it 33.22 proposes to levy under each section or subdivision. The 33.23 reduction shall be computed on the basis of the amount so 33.24 ascertained. 33.25 (5) To the extent the levy reduction calculated under 33.26 paragraph (2) exceeds the limitation in paragraph (3), an amount 33.27 equal to the excess must be distributed from the school 33.28 district's distribution under sections 298.225, 298.28, and 33.29 477A.15 in the following year to the cities and townships within 33.30 the school district in the proportion that their taxable net tax 33.31 capacity within the school district bears to the taxable net tax 33.32 capacity of the school district for property taxes payable in 33.33 the year prior to distribution. No city or township shall 33.34 receive a distribution greater than its levy for taxes payable 33.35 in the year prior to distribution. The commissioner of revenue 33.36 shall certify the distributions of cities and towns under this 34.1 paragraph to the county auditor by September 30 of the year 34.2 preceding distribution. The county auditor shall reduce the 34.3 proposed and final levies of cities and towns receiving 34.4 distributions by the amount of their distribution. 34.5 Distributions to the cities and towns shall be made at the times 34.6 provided under section 298.27. 34.7 Sec. 45. Minnesota Statutes 2004, section 127A.45, 34.8 subdivision 11, is amended to read: 34.9 Subd. 11. [PAYMENT PERCENTAGE FOR REIMBURSEMENT AIDS.] One 34.10 hundred percent of the aid for the previous fiscal year must be 34.11 paid in the current year for the following aids: 34.12 telecommunications/Internet access equity aid according to 34.13 section 125B.26, special education special pupil aid according 34.14 to section 125A.75, subdivision 3, aid for litigation costs 34.15 according to section 125A.75, subdivision 8, aid for 34.16 court-placed special education expenses according to section 34.17 125A.79, subdivision 4, and aid for special education 34.18 out-of-state tuition according to section 125A.79, subdivision 8 34.19 and shared time aid according to section 126C.01, subdivision 7. 34.20 Sec. 46. Minnesota Statutes 2004, section 127A.47, 34.21 subdivision 8, is amended to read: 34.22 Subd. 8. [CHARTER SCHOOLS.] (a) The general education aid 34.23 for districts must be adjusted for each pupil attending a 34.24 charter school under section 124D.10. The adjustments must be 34.25 made according to this subdivision. 34.26 (b) General education aid paid to a district in which a 34.27 charter school not providing transportation according to section 34.28 124D.10, subdivision 16, is located must be increased by an 34.29 amount equal to the product of: (1) the sum of an amount equal 34.30 to the product of the formula allowance according to section 34.31 126C.10, subdivision 2, times .0485 for fiscal years 2005 and 34.32 2006 and times .0458 for fiscal year 2007 and later, plus the 34.33 transportation sparsity allowance for the district; times (2) 34.34 the pupil units attributable to the pupil. 34.35 Sec. 47. Minnesota Statutes 2004, section 127A.49, 34.36 subdivision 2, is amended to read: 35.1 Subd. 2. [ABATEMENTS.] Whenever by virtue of chapter 278, 35.2 sections 270.07, 375.192, or otherwise, the net tax capacity of 35.3 any district for any taxable year is changed after the taxes for 35.4 that year have been spread by the county auditor and the local 35.5 tax rate as determined by the county auditor based upon the 35.6 original net tax capacity is applied upon the changed net tax 35.7 capacities, the county auditor shall, prior to February 1 of 35.8 each year, certify to the commissioner of education the amount 35.9 of any resulting net revenue loss that accrued to the district 35.10 during the preceding year. Each year, the commissioner shall 35.11 pay an abatement adjustment to the district in an amount 35.12 calculated according to the provisions of this subdivision. 35.13 This amount shall be deducted from the amount of the levy 35.14 authorized by section 126C.46. The amount of the abatement 35.15 adjustment must be the product of: 35.16 (1) the net revenue loss as certified by the county 35.17 auditor, times 35.18 (2) the ratio of: 35.19 (i) the sum of the amounts of the district's certified levy 35.20 in the third preceding year according to the following: 35.21 (A) section 123B.57, if the district received health and 35.22 safety aid according to that section for the second preceding 35.23 year; 35.24 (B) section 124D.20, if the district received aid for 35.25 community education programs according to that section for the 35.26 second preceding year; 35.27 (C) section 124D.135, subdivision 3, if the district 35.28 received early childhood family education aid according to 35.29 section 124D.135 for the second preceding year; and 35.30 (D) section 126C.17, subdivision 6, if the district 35.31 received referendum equalization aid according to that section 35.32 for the second preceding year; to 35.33 (ii) the total amount of the district's certified levy in 35.34 the third preceding December, plus or minus auditor's 35.35 adjustments. 35.36 Sec. 48. Minnesota Statutes 2004, section 127A.49, 36.1 subdivision 3, is amended to read: 36.2 Subd. 3. [EXCESS TAX INCREMENT.] (a) If a return of excess 36.3 tax increment is made to a district pursuant tosectionsections 36.4 469.176, subdivision 2, and 469.177, subdivision 9, or upon 36.5 decertification of a tax increment district, the school 36.6 district's aid and levy limitations must be adjusted for the 36.7 fiscal year in which the excess tax increment is paid under the 36.8 provisions of this subdivision. 36.9 (b) An amount must be subtracted from the district's aid 36.10 for the current fiscal year equal to the product of: 36.11 (1) the amount of the payment of excess tax increment to 36.12 the district, times 36.13 (2) the ratio of: 36.14 (i) the sum of the amounts of the district's certified levy 36.15 for the fiscal year in which the excess tax increment is paid 36.16 according to the following: 36.17 (A) section 123B.57, if the district received health and 36.18 safety aid according to that section for the second preceding 36.19 year; 36.20 (B) section 124D.20, if the district received aid for 36.21 community education programs according to that section for the 36.22 second preceding year; 36.23 (C) section 124D.135, subdivision 3, if the district 36.24 received early childhood family education aid according to 36.25 section 124D.135 for the second preceding year; and 36.26 (D) section 126C.17, subdivision 6, if the district 36.27 received referendum equalization aid according to that section 36.28 for the second preceding year; to 36.29 (ii) the total amount of the district's certified levy for 36.30 the fiscal year, plus or minus auditor's adjustments. 36.31 (c) An amount must be subtracted from the school district's 36.32 levy limitation for the next levy certified equal to the 36.33 difference between: 36.34 (1) the amount of the distribution of excess increment; and 36.35 (2) the amount subtracted from aid pursuant to clause (a). 36.36 If the aid and levy reductions required by this subdivision 37.1 cannot be made to the aid for the fiscal year specified or to 37.2 the levy specified, the reductions must be made from aid for 37.3 subsequent fiscal years, and from subsequent levies. The school 37.4 district must use the payment of excess tax increment to replace 37.5 the aid and levy revenue reduced under this subdivision. 37.6 (d) This subdivision applies only to the total amount of 37.7 excess increments received by a district for a calendar year 37.8 that exceeds $25,000. 37.9 Sec. 49. Minnesota Statutes 2004, section 275.14, is 37.10 amended to read: 37.11 275.14 [CENSUS.] 37.12For the purposes of sections 275.124 to 275.16, the37.13population of a city shall be that established by the last37.14federal census, by a special census taken by the United States37.15Bureau of the Census, by an estimate made by the Metropolitan37.16Council, or by the state demographer made according to section37.174A.02, whichever has the latest stated date of count or37.18estimate, before July 2 of the current levy year.The 37.19 population of a school district must be as certified by the 37.20 Department of Education from the most recent federal census. In 37.21 any year in which no federal census is taken pursuant to law in 37.22 any school district affected by sections275.124 to37.23275.16124D.20 and 124D.531 a population estimate may be made 37.24 and submitted to the state demographer for approval as 37.25 hereinafter provided. The school board of a school district, in 37.26 case it desires a population estimate, shall pass a resolution 37.27 by July 1 containing a current estimate of the population of the 37.28 school district and shall submit the resolution to the state 37.29 demographer. The resolution shall describe the criteria on 37.30 which the estimate is based and shall be in a form and 37.31 accompanied by the data prescribed by the state demographer. 37.32 The state demographer shall determine whether or not the 37.33 criteria and process described in the resolution provide a 37.34 reasonable basis for the population estimate and shall inform 37.35 the school district of that determination within 30 days of 37.36 receipt of the resolution. If the state demographer determines 38.1 that the criteria and process described in the resolution do not 38.2 provide a reasonable basis for the population estimate, the 38.3 resolution shall be of no effect. If the state demographer 38.4 determines that the criteria and process do provide a reasonable 38.5 basis for the population estimate, the estimate shall be treated 38.6 as the population of the school district for the purposes of 38.7 sections275.124 to 275.16124D.20 and 124D.531 until the 38.8 population of the school district has been established by the 38.9 next federal census or until a more current population estimate 38.10 is prepared and approved as provided herein, whichever occurs 38.11 first. The state demographer shall establish guidelines for 38.12 acceptable population estimation criteria and processes. The 38.13 state demographer shall issue advisory opinions upon request in 38.14 writing to cities or school districts as to proposed criteria 38.15 and processes prior to their implementation in an estimation. 38.16 The advisory opinion shall be final and binding upon the 38.17 demographer unless the demographer can show cause why it should 38.18 not be final and binding. 38.19 In the event that a census tract employed in taking a 38.20 federal or local census overlaps two or more school districts, 38.21 the county auditor shall, on the basis of the best information 38.22 available, allocate the population of said census tract to the 38.23 school districts involved. 38.24The term "council," as used in sections 275.124 to 275.16,38.25means any board or body, whether composed of one or more38.26branches, authorized to make ordinances for the government of a38.27city within this state.38.28 Sec. 50. Minnesota Statutes 2004, section 275.16, is 38.29 amended to read: 38.30 275.16 [COUNTY AUDITOR TO FIX AMOUNT OF LEVY.] 38.31 If any such municipality shall return to the county auditor 38.32 a levy greater than permitted by chapters 123A, 123B, 124D, 38.33 126C, and 136C,and 136D,sections 275.124 to 275.16, and 275.70 38.34 to 275.74, such county auditor shall extend only such amount of 38.35 taxes as the limitations herein prescribed will permit; 38.36 provided, if such levy shall include any levy for the payment of 39.1 bonded indebtedness or judgments, such levies for bonded 39.2 indebtedness or judgments shall be extended in full, and the 39.3 remainder of the levies shall be reduced so that the total 39.4 thereof, including levies for bonds and judgments, shall not 39.5 exceed such amount as the limitations herein prescribed will 39.6 permit. 39.7 Sec. 51. Minnesota Statutes 2004, section 469.177, 39.8 subdivision 9, is amended to read: 39.9 Subd. 9. [DISTRIBUTIONS OF EXCESS TAXES ON CAPTURED NET 39.10 TAX CAPACITY.] (a) If the amount of tax paid on captured net tax 39.11 capacity exceeds the amount of tax increment, the county auditor 39.12 shall distribute the excess to the municipality, county, and 39.13 school district as follows: each governmental unit's share of 39.14 the excess equals 39.15 (1) the total amount of the excess for the tax increment 39.16 financing district, multiplied by 39.17 (2) a fraction, the numerator of which is the current local 39.18 tax rate of the governmental unit less the governmental unit's 39.19 local tax rate for the year the original local tax rate for the 39.20 district was certified (in no case may this amount be less than 39.21 zero) and the denominator of which is the sum of the numerators 39.22 for the municipality, county, and school district. 39.23 If the entire increase in the local tax rate is attributable to 39.24 a taxing district, other than the municipality, county, or 39.25 school district, then the excess must be distributed to the 39.26 municipality, county, and school district in proportion to their 39.27 respective local tax rates. 39.28 (b) The amounts distributed shall be deducted in computing 39.29 the levy limits of the taxing district for the succeeding 39.30 taxable year.In the case of a school district, only the39.31proportion of the excess taxes attributable to unequalized39.32levies that are subject to a fixed dollar amount levy limit39.33shall be deducted from the levy limit.39.34 (c) In the case of distributions to a school districtthat39.35are attributable to state equalized levies, the county auditor 39.36 shall report amounts distributed to the commissioner of 40.1 education in the same manner as provided for excess increments 40.2 under section 469.176, subdivision 2, and the distribution shall 40.3 be deducted from the school district's state aid payments and 40.4 levy limitation according to section 127A.49, subdivision 3. 40.5 Sec. 52. 2005 S.F. No. 1879, article 3, section 3, 40.6 subdivision 2, if enacted, is amended to read: 40.7 Subd. 2. [GENERAL EDUCATION AID.] For general education 40.8 aid under Minnesota Statutes, section 126C.13, subdivision 4: 40.9 $5,012,148,0005,215,775,000 ..... 2006 40.10 $5,007,512,0005,419,253,000 ..... 2007 40.11 The 2006 appropriation includes $784,978,000 for 2005 and 40.12 $4,227,170,0004,430,797,000 for 2006. 40.13 The 2007 appropriation includes $782,399,000825,190,000 40.14 for 2006 and $4,225,113,0004,594,063,000 for 2007. 40.15 Sec. 53. 2005 S.F. No. 1879, article 3, section 3, 40.16 subdivision 3, if enacted, is amended to read: 40.17 Subd. 3. [REFERENDUM TAX BASE REPLACEMENT AID.] For 40.18 referendum tax base replacement aid under Minnesota Statutes, 40.19 section 126C.17, subdivision 7a: 40.20 $8,704,000 ..... 2006 40.21 $8,704,0008,706,000 ..... 2007 40.22 The 2006 appropriation includes $1,366,000 for 2005 and 40.23 $7,338,000 for 2006. 40.24 The 2007 appropriation includes $1,366,000 for 2006 and 40.25 $7,338,0007,340,000 for 2007. 40.26 Sec. 54. 2005 S.F. No. 1879, article 3, section 3, 40.27 subdivision 7, if enacted, is amended to read: 40.28 Subd. 7. [NONPUBLIC PUPIL EDUCATION AID.] For nonpublic 40.29 pupil education aid under Minnesota Statutes, sections 123B.40 40.30 to 123B.43 and 123B.87: 40.31 $15,174,00015,817,000 ..... 2006 40.32 $15,976,00017,426,000 ..... 2007 40.33 The 2006 appropriation includes $2,305,000 for 2005 and 40.34 $12,869,00013,512,000 for 2006. 40.35 The 2007 appropriation includes $2,396,0002,516,000 for 40.36 2006 and $13,580,00014,910,000 for 2007. 41.1 Sec. 55. 2005 S.F. No. 1879, article 3, section 3, 41.2 subdivision 8, if enacted, is amended to read: 41.3 Subd. 8. [NONPUBLIC PUPIL TRANSPORTATION AID.] For 41.4 nonpublic pupil transportation aid under Minnesota Statutes, 41.5 section 123B.92, subdivision 9: 41.6 $20,758,00021,633,000 ..... 2006 41.7 $21,446,00023,390,000 ..... 2007 41.8 The 2006 appropriation includes $3,274,000 for 2005 and 41.9 $17,484,00018,359,000 for 2006. 41.10 The 2007 appropriation includes $3,256,0003,418,000 for 41.11 2006 and $18,190,00019,972,000 for 2007. 41.12 Sec. 56. [FOUR-YEAR OLD PREKINDERGARTEN ALLOWANCE.] 41.13 (a) A district's four-year old prekindergarten revenue 41.14 equals the sum of (1) the amount of referendum revenue under 41.15 Minnesota Statutes, section 126C.17, and general education 41.16 revenue, excluding transition revenue, for fiscal year 2004 41.17 attributable to pupils four or five years of age on September 1, 41.18 2003, enrolled in a prekindergarten program implemented by the 41.19 district before July 1, 2003, and reported as kindergarten 41.20 pupils under Minnesota Statutes, section 126C.05, subdivision 1, 41.21 for fiscal year 2004, plus (2) the amount of compensatory 41.22 education revenue under Minnesota Statutes, section 126C.05, 41.23 subdivision 3, for fiscal year 2005 attributable to pupils four 41.24 years of age on September 1, 2003, enrolled in a prekindergarten 41.25 program implemented by the district before July 1, 2003, and 41.26 reported as kindergarten pupils under Minnesota Statutes, 41.27 section 126C.05, subdivision 1, for 2004. 41.28 (b) A district's four-year old prekindergarten allowance 41.29 equals a district's four-year old prekindergarten revenue under 41.30 paragraph (a) divided by its 2007 resident marginal cost pupil 41.31 units. 41.32 Sec. 57. [TRANSITION REVENUE 2004 CONVERSION ALLOWANCE.] 41.33 (a) A district's transition revenue 2004 conversion 41.34 allowance is equal to the sum of (1) the district's fiscal year 41.35 2004 transition revenue allowance multiplied by the ratio of its 41.36 adjusted marginal cost pupil units to its resident marginal cost 42.1 pupil units for the preceding fiscal year, plus (2) its 42.2 four-year old prekindergarten allowance multiplied by 0.01. 42.3 (b) Notwithstanding Minnesota Statutes, section 126C.17, 42.4 subdivision 2, the transition revenue 2004 conversion allowance 42.5 is increased by $40 for any school district whose referendum 42.6 allowance limit under Minnesota Statutes, section 126C.17, 42.7 subdivision 2, does not increase in fiscal year 2007 as a result 42.8 of growth, excluding roll-ins, in the formula allowance under 42.9 Minnesota Statutes, section 126C.10, subdivision 2, and whose 42.10 referendum allowance under Minnesota Statutes, section 126C.17, 42.11 subdivision 1, is greater than the formula allowance multiplied 42.12 by 18.6 percent. A district that is eligible for sparsity 42.13 revenue is not eligible for this additional transition allowance 42.14 adjustment. 42.15 Sec. 58. [SCHOOL BUS LOAN; CARPENTER SCHOOL BUSES.] 42.16 Subdivision 1. [BUS LOAN REVENUE.] In fiscal year 2006 42.17 only, a school district may receive bus loan revenue equal to up 42.18 to $30,000 times the number of Carpenter school buses in its 42.19 fleet between March 30, 2003, and March 30, 2004, that have been 42.20 determined to have potentially defective welds and are subject 42.21 to the limitations imposed by the Department of Public Safety. 42.22 A school district that is eligible to receive revenue under this 42.23 subdivision must approve a board resolution to receive revenue 42.24 according to this section. 42.25 Subd. 2. [LEVY.] For taxes payable in 2006 through 2009, a 42.26 school district that receives revenue under subdivision 1 must 42.27 levy an amount equal to its bus loan revenue times .25. 42.28 Subd. 3. [GENERAL EDUCATION REVENUE WITHHOLDING.] For 42.29 fiscal years 2007 through 2010, the Department of Education 42.30 shall reduce the general education aid under Minnesota Statutes, 42.31 section 126C.13, subdivision 4, for each district that receives 42.32 revenue under subdivision 1 in an amount equal to the district's 42.33 bus loan revenue times .25. 42.34 Sec. 59. [RED LAKE FISCAL YEAR 2005 PUPIL UNITS.] 42.35 Notwithstanding Minnesota Statutes, section 126C.05, the 42.36 fiscal year 2005 average daily membership for Independent School 43.1 District No. 38, Red Lake, shall be the greater of the amount 43.2 that would have been computed if the district's school buildings 43.3 had not reopened after March 21, 2005, or the amount computed 43.4 using actual data for the entire school year. Notwithstanding 43.5 Minnesota Statutes, section 126C.05, subdivision 15, for fiscal 43.6 year 2005, learning year pupil units for Independent School 43.7 District No. 38, Red Lake, must be calculated using the hours in 43.8 excess of the actual number of instructional hours in the 43.9 calendar year for the school attended by the student, instead of 43.10 the number of hours in excess of 1,020 for a secondary school 43.11 pupil. 43.12 Sec. 60. [FISCAL YEARS 2006 AND 2007 DECLINING PUPIL UNIT 43.13 AID, RED LAKE.] 43.14 For fiscal years 2006 and 2007 only, Independent School 43.15 District No. 38, Red Lake, is eligible for declining pupil unit 43.16 aid equal to the greater of zero or the product of the general 43.17 education formula allowance times the difference between the 43.18 district's adjusted marginal cost pupil units for fiscal year 43.19 2005 and the district's adjusted marginal cost pupil units for 43.20 that fiscal year. Notwithstanding Minnesota Statutes, section 43.21 126C.13, the declining pupil unit aid must be included in 43.22 calculating the district's general education aid. 43.23 Sec. 61. [KINDERGARTEN REPORTING.] 43.24 Notwithstanding Minnesota Statutes, sections 120A.05, 43.25 subdivision 18; 120A.20, subdivision 1; and 124D.02, subdivision 43.26 1, pupils four or five years of age on September 1 of the 43.27 calendar year in which the school year commences and enrolled in 43.28 a prekindergarten program implemented by the district before 43.29 July 1, 2003, may be reported as kindergarten pupils under 43.30 Minnesota Statutes, section 126C.05, subdivision 1, for fiscal 43.31 year 2004 and earlier. 43.32 [EFFECTIVE DATE.] This section is effective the day 43.33 following final enactment and applies to fiscal year 2004 and 43.34 earlier. 43.35 Sec. 62. [TRANSITION REVENUE ADJUSTMENTS.] 43.36 For taxes payable in 2006, a district may levy an amount 44.1 equal to the increase in the district's transition levy for 44.2 fiscal year 2006 under Minnesota Statutes, section 126C.10, 44.3 subdivision 31, paragraph (c). 44.4 Sec. 63. [APPROPRIATIONS.] 44.5 Subdivision 1. [DEPARTMENT OF EDUCATION.] The sums 44.6 indicated in this section are appropriated from the general fund 44.7 to the Department of Education for the fiscal years designated. 44.8 Subd. 2. [SCHOOL BUS LOAN REVENUE.] For school bus loan 44.9 revenue under section 58: 44.10 $3,630,000 ..... 2006 44.11 Sec. 64. [REPEALER.] 44.12 (a) Minnesota Statutes 2004, sections 123B.83, subdivision 44.13 1; and 126C.42, subdivisions 1 and 4, are repealed. 44.14 (b) Minnesota Statutes 2004, sections 126C.10, subdivisions 44.15 13a, 13b, 29, 30, 31, 32, and 33; and 126C.44, are repealed for 44.16 revenue for fiscal year 2007. 44.17 ARTICLE 2 44.18 EDUCATION EXCELLENCE 44.19 Section 1. Minnesota Statutes 2004, section 13.321, is 44.20 amended by adding a subdivision to read: 44.21 Subd. 10. [TEACHER DATA FROM VALUE-ADDED ASSESSMENT 44.22 MODEL.] Data on individual teachers generated from a value-added 44.23 assessment model are governed under section 120B.362. 44.24 [EFFECTIVE DATE.] This section is effective the day 44.25 following final enactment. 44.26 Sec. 2. [120A.38] [CLASSROOM PLACEMENT; PARENT 44.27 DISCRETION.] 44.28 (a) A parent or guardian of twins or higher order multiples 44.29 may request that the children be placed in the same classroom or 44.30 in separate classrooms if the children are in the same grade 44.31 level at the same school. The school may recommend classroom 44.32 placement to the parents and provide professional education 44.33 advice to the parents to assist them in making the best decision 44.34 for their children's education. A school must provide the 44.35 placement requested by the children's parent or guardian, unless 44.36 the school board makes a classroom placement determination 45.1 following the school principal's request according to this 45.2 section. The parent or guardian must request the classroom 45.3 placement no later than 14 days after the first day of each 45.4 school year or 14 days after the first day of attendance of the 45.5 children during a school year if the children are enrolled in 45.6 the school after the school year commences. At the end of the 45.7 initial grading period, if the school principal, in consultation 45.8 with the children's classroom teacher, determines that the 45.9 requested classroom placement is disruptive to the school, the 45.10 school principal may request that the school board determine the 45.11 children's classroom placement. 45.12 (b) For purposes of this section, "higher order multiples" 45.13 means triplets, quadruplets, quintuplets, or more. 45.14 [EFFECTIVE DATE.] This section is effective for the 45.15 2005-2006 school year and later. 45.16 Sec. 3. Minnesota Statutes 2004, section 120B.02, is 45.17 amended to read: 45.18 120B.02 [EDUCATIONAL EXPECTATIONS FOR MINNESOTA'S 45.19 STUDENTS.] 45.20 (a) The legislature is committed to establishing rigorous 45.21 academic standards for Minnesota's public school students. To 45.22 that end, the commissioner shall adopt in rule statewide 45.23 academic standards. The commissioner shall not prescribe in 45.24 rule or otherwise the delivery system, classroom assessments, or 45.25 form of instruction that school sites must use. For purposes of 45.26 this chapter, a school site is a separate facility, or a 45.27 separate program within a facility that a local school board 45.28 recognizes as a school site for funding purposes. 45.29 (b) All commissioner actions regarding the rule must be 45.30 premised on the following: 45.31 (1) the rule is intended to raise academic expectations for 45.32 students, teachers, and schools; 45.33 (2) any state action regarding the rule must evidence 45.34 consideration of school district autonomy; and 45.35 (3) the Department of Education, with the assistance of 45.36 school districts, must make available information about all 46.1 state initiatives related to the rule to students and parents, 46.2 teachers, and the general public in a timely format that is 46.3 appropriate, comprehensive, and readily understandable. 46.4 (c) When fully implemented, the requirements for high 46.5 school graduation in Minnesota must require students topass the46.6basic skills test requirements andsatisfactorily complete, as 46.7 determined by the school district, the course credit 46.8 requirements under section 120B.024 and: 46.9 (1) for students enrolled in grade 8 before the 2005-2006 46.10 school year, to pass the basic skills test requirements; or 46.11 (2) for students enrolled in grade 8 in the 2005-2006 46.12 school year and later, to pass the Minnesota Comprehensive 46.13 Assessments Second Edition (MCA-IIs). 46.14 (d) The commissioner shall periodically review and report 46.15 on the state's assessment process. 46.16 (e) School districts are not required to adopt specific 46.17 provisions ofthe Goals 2000 andthe federal School-to-Work 46.18 programs. 46.19 Sec. 4. Minnesota Statutes 2004, section 120B.021, 46.20 subdivision 1, is amended to read: 46.21 Subdivision 1. [REQUIRED ACADEMIC STANDARDS.] The 46.22 following subject areas are required for statewide 46.23 accountability: 46.24 (1) language arts; 46.25 (2) mathematics; 46.26 (3) science; 46.27 (4) social studies, including history, geography, 46.28 economics, and government and citizenship; 46.29 (5) health and physical education, for which locally 46.30 developed academic standards apply; and 46.31 (6) the arts, for which statewide or locally developed 46.32 academic standards apply, as determined by the school district. 46.33 Public elementary and middle schools must offer at least three 46.34 and require at least two of the following four arts areas: 46.35 dance; music; theater; and visual arts. Public high schools 46.36 must offer at least three and require at least one of the 47.1 following five arts areas: media arts; dance; music; theater; 47.2 and visual arts. 47.3 The commissioner must submit proposed standards in science 47.4 and social studies to the legislature by February 1, 2004. 47.5 For purposes of applicable federal law, the academic standards 47.6 for language arts, mathematics, and science apply to all public 47.7 school students, except the very few students with extreme 47.8 cognitive or physical impairments for whom an individualized 47.9 education plan team has determined that the required academic 47.10 standards are inappropriate. An individualized education plan 47.11 team that makes this determination must establish alternative 47.12 standards. 47.13 A school district, no later than the 2007-2008 school year, 47.14 must adopt graduation requirements that meet or exceed state 47.15 graduation requirements established in law or rule. A school 47.16 district that incorporates these state graduation requirements 47.17 before the 2007-2008 school year must provide students who enter 47.18 the 9th grade in or before the 2003-2004 school year the 47.19 opportunity to earn a diploma based on existing locally 47.20 established graduation requirements in effect when the students 47.21 entered the 9th grade. District efforts to develop, implement, 47.22 or improve instruction or curriculum as a result of the 47.23 provisions of this section must be consistent with sections 47.24 120B.10, 120B.11, and 120B.20. 47.25 At a minimum, school districts must maintain the same 47.26 physical education and health education requirements for 47.27 students in kindergarten through grade 8 adopted for the 47.28 2004-2005 school year through the 2007-2008 school year. Before 47.29 a revision of the local health and physical education standards, 47.30 a school district must consult the grade-specific benchmarks 47.31 developed by the Department of Education's health and physical 47.32 education quality teaching network for the six national physical 47.33 education standards and the seven national health standards. 47.34 Sec. 5. Minnesota Statutes 2004, section 120B.021, is 47.35 amended by adding a subdivision to read: 47.36 Subd. 1a. [RIGOROUS COURSE OF STUDY; WAIVER.] (a) Upon 48.1 receiving a student's application signed by the student's parent 48.2 or guardian, a school district, area learning center, or charter 48.3 school must declare that a student meets or exceeds a specific 48.4 academic standard required for graduation under this section if 48.5 the local school board, the school board of the school district 48.6 in which the area learning center is located, or the charter 48.7 school board of directors determines that the student: 48.8 (1) is participating in a course of study, including an 48.9 advanced placement or international baccalaureate course or 48.10 program; a learning opportunity outside the curriculum of the 48.11 district, area learning center, or charter school; or an 48.12 approved preparatory program for employment or postsecondary 48.13 education that is equally or more rigorous than the 48.14 corresponding state or local academic standard required by the 48.15 district, area learning center, or charter school; 48.16 (2) would be precluded from participating in the rigorous 48.17 course of study, learning opportunity, or preparatory employment 48.18 or postsecondary education program if the student were required 48.19 to achieve the academic standard to be waived; and 48.20 (3) satisfactorily completes the requirements for the 48.21 rigorous course of study, learning opportunity, or preparatory 48.22 employment or postsecondary education program. 48.23 Consistent with the requirements of this section, the local 48.24 school board, the school board of the school district in which 48.25 the area learning center is located, or the charter school board 48.26 of directors also may formally determine other circumstances in 48.27 which to declare that a student meets or exceeds a specific 48.28 academic standard that the site requires for graduation under 48.29 this section. 48.30 (b) A student who satisfactorily completes a postsecondary 48.31 enrollment options course or program under section 124D.09 is 48.32 not required to complete other requirements of the academic 48.33 standards corresponding to that specific rigorous course of 48.34 study. 48.35 Sec. 6. Minnesota Statutes 2004, section 120B.024, is 48.36 amended to read: 49.1 120B.024 [GRADUATION REQUIREMENTS; COURSE CREDITS.] 49.2 Students beginning 9th grade in the 2004-2005 school year 49.3 and later must successfully complete the following high school 49.4 level course credits for graduation: 49.5 (1) four credits of language arts; 49.6 (2) three credits of mathematics, encompassing at least the 49.7 mathematical reasoning, algebra, geometry, statistics, and 49.8 probabilitysufficient to satisfy the academic49.9standardidentified in the mathematics grades 9, 10, and 11 49.10 standards documents; 49.11 (3) three credits of science, including at least one credit 49.12 in biology; 49.13 (4) three and one-half credits of social studies, 49.14 encompassing at least United States history, geography, 49.15 government and citizenship, world history, and economics or 49.16 three credits of social studies encompassing at least United 49.17 States history, geography, government and citizenship, and world 49.18 history, and one-half credit of economics taught in a school's 49.19 social studies or business department; 49.20 (5) one credit in the arts;and49.21 (6) one-half credit in physical education and one-half 49.22 credit in health education; and 49.23 (7) a minimum ofsevensix elective course credits. 49.24 A course credit is equivalent to a student successfully 49.25 completing an academic year of study or a student mastering the 49.26 applicable subject matter, as determined by the local school 49.27 district. 49.28 Sec. 7. Minnesota Statutes 2004, section 120B.11, 49.29 subdivision 1, is amended to read: 49.30 Subdivision 1. [DEFINITIONS.] For the purposes of this 49.31 section and section 120B.10, the following terms have the 49.32 meanings given them. 49.33 (a) "Instruction" means methods of providing learning 49.34 experiences thatenablesenable a student to meet state and 49.35 district academic standards and graduation 49.36standardsrequirements. 50.1 (b) "Curriculum" means district or school adopted programs 50.2 and written plans for providing students with learning 50.3 experiences that lead to expected knowledge,and skills, and50.4positive attitudes. 50.5 Sec. 8. Minnesota Statutes 2004, section 120B.11, 50.6 subdivision 2, is amended to read: 50.7 Subd. 2. [ADOPTING POLICIES.] (a) A school board shall 50.8adopt annually ahave in place an adopted written policy that 50.9 includes the following: 50.10 (1) district goals for instructionandincluding the use of 50.11 best practices, district and school curriculum, and achievement 50.12 for all student subgroups; 50.13 (2) a process for evaluating each student's progress toward 50.14 meetinggraduationacademic standards and identifying the 50.15 strengths and weaknesses of instruction and curriculum affecting 50.16 students' progress; 50.17 (3) a system for periodically reviewing and evaluating all 50.18 instruction and curriculum; 50.19 (4) a plan for improving instructionand, curriculum, and 50.20 student achievement; and 50.21 (5) aninstruction plan that includeseducation 50.22 effectivenessprocesses developed underplan aligned with 50.23 section 122A.625andthat integrates instruction, curriculum, 50.24 and technology. 50.25 Sec. 9. Minnesota Statutes 2004, section 120B.11, 50.26 subdivision 3, is amended to read: 50.27 Subd. 3. [INSTRUCTION AND CURRICULUMDISTRICT ADVISORY 50.28 COMMITTEE.] Each school board shall establish anInstruction and50.29Curriculumadvisory committee to ensure active community 50.30 participation in all phases of planning and improving the 50.31 instruction and curriculum affecting stategraduationand 50.32 district academic standards. A district advisory committee, to 50.33 the extent possible, shall reflect the diversity of the district 50.34 and its learning sites, and shall include teachers, parents, 50.35 support staff,pupilsstudents, and other community residents. 50.36 The district may establish building teams as subcommittees of 51.1 the district advisory committee under subdivision 4. The 51.2 district advisory committee shall recommend to the school 51.3 boarddistrictwide education standardsrigorous academic 51.4 standards, student achievement goals and measures, assessments, 51.5 and program evaluations. Learning sites may expand upon 51.6 district evaluations of instruction, curriculum, assessments, or 51.7 programs. Whenever possible, parents and other community 51.8 residents shall comprise at least two-thirds of advisory 51.9 committee members. 51.10 Sec. 10. Minnesota Statutes 2004, section 120B.11, 51.11 subdivision 4, is amended to read: 51.12 Subd. 4. [BUILDING TEAM.] A school may establish a 51.13 building team to develop and implement an education 51.14 effectiveness plan to improve instructionand, curriculum, and 51.15 student achievement. The team shall advise the board and the 51.16 advisory committee about developing an instruction and 51.17 curriculum improvement plan that aligns curriculum, assessment 51.18 of student progress in meeting stategraduationand district 51.19 academic standards, and instruction. 51.20 Sec. 11. Minnesota Statutes 2004, section 120B.11, 51.21 subdivision 5, is amended to read: 51.22 Subd. 5. [REPORT.] (a) By October 1 of each year, the 51.23 school board shall use standard statewide reporting procedures 51.24 the commissioner develops and adopt a report that includes the 51.25 following: 51.26 (1) studentperformanceachievement goals for meeting state 51.27graduationacademic standardsadopted for that year; 51.28 (2) results of local assessment data, and any additional 51.29 test data; 51.30 (3) the annual school district improvement plans including 51.31 staff development goals under section 122A.60; 51.32 (4) information about district and learning site progress 51.33 in realizing previously adopted improvement plans; and 51.34 (5) the amount and type of revenue attributed to each 51.35 education site as defined in section 123B.04. 51.36 (b) The school board shall publish the report in the local 52.1 newspaper with the largest circulation in the districtor, by 52.2 mail, or by electronic means such as the district Web site. If 52.3 electronic means are used, copies of the report must be made 52.4 available to the public on request. The board shall make a copy 52.5 of the report available to the public for inspection. The board 52.6 shall send a copy of the report to the commissioner of education 52.7 by October 15 of each year. 52.8 (c) The title of the report shall contain the name and 52.9 number of the school district and read "Annual Report on 52.10 Curriculum, Instruction, and StudentPerformanceAchievement." 52.11 The report must include at least the following information about 52.12 advisory committee membership: 52.13 (1) the name of each committee member and the date when 52.14 that member's term expires; 52.15 (2) the method and criteria the school board uses to select 52.16 committee members; and 52.17 (3) the date by which a community resident must apply to 52.18 next serve on the committee. 52.19 Sec. 12. Minnesota Statutes 2004, section 120B.11, 52.20 subdivision 8, is amended to read: 52.21 Subd. 8. [BIENNIAL EVALUATION; ASSESSMENT PROGRAM.] At 52.22 least once every two years, the district report shall include an 52.23 evaluation of the district testing programs, according to the 52.24 following: 52.25 (1) written objectives of the assessment program; 52.26 (2) names of tests and grade levels tested; 52.27 (3) use of test results; and 52.28 (4)implementation of an assurance of mastery program52.29 student achievement results compared to previous years. 52.30 Sec. 13. [120B.15] [GIFTED AND TALENTED STUDENTS 52.31 PROGRAMS.] 52.32 Subdivision 1. [GIFTED AND TALENTED STUDENTS.] School 52.33 districts must adopt guidelines for assessing and identifying 52.34 students for participation in gifted and talented programs. The 52.35 guidelines should include the use of: 52.36 (1) multiple and objective criteria; and 53.1 (2) assessments and procedures that are valid and reliable, 53.2 fair, and based on current theory and research. 53.3 Subd. 2. [STUDENT ACCESS; PROGRAM CONTENT AND 53.4 DEVELOPMENT.] (a) Gifted and talented programs may include: 53.5 (1) curriculum aligned with the cognitive, affective, 53.6 developmental, and physical needs of gifted and talented 53.7 students; 53.8 (2) articulated prekindergarten through grade 12 learning 53.9 experiences; 53.10 (3) flexible instructional pacing and subject and 53.11 grade-based opportunities to accelerate instruction; 53.12 (4) rigorous content consistent with students' abilities 53.13 and social and emotional development; 53.14 (5) challenging learning experiences focused on problem 53.15 solving and advanced reasoning; and 53.16 (6) differentiated guidance services to nurture students' 53.17 social and emotional development. 53.18 (b) School districts, in collaboration with interested 53.19 community members and with technical assistance from the state 53.20 Department of Education, may offer gifted and talented programs. 53.21 [EFFECTIVE DATE.] This section is effective for the 53.22 2005-2006 school year and later. 53.23 Sec. 14. Minnesota Statutes 2004, section 120B.22, 53.24 subdivision 1, is amended to read: 53.25 Subdivision 1. [VIOLENCE PREVENTION CURRICULUM.] (a) The 53.26 commissioner of education, in consultation with the 53.27 commissioners of health and human services, state minority 53.28 councils, battered women's and domestic abuse programs, battered 53.29 women's shelters, sexual assault centers, representatives of 53.30 religious communities, and the assistant commissioner of the 53.31 Office of Drug Policy and Violence Prevention, shall assist 53.32 districts on request in developing or implementing a violence 53.33 prevention program for students in kindergarten to grade 12 that 53.34 can be integrated into existing curriculum. The purpose of the 53.35 program is to help students learn how to resolve conflicts 53.36 within their families and communities in nonviolent, effective 54.1 ways. 54.2 (b) Each district is encouraged to integrate into its 54.3 existing curriculum a program for violence prevention that 54.4 includes at least: 54.5 (1) a comprehensive, accurate, and age appropriate 54.6 curriculum on violence prevention, nonviolent conflict 54.7 resolution, sexual, racial, and cultural 54.8 harassment, self-protection, and student hazing that promotes 54.9 equality, respect, understanding, effective communication, 54.10 individual responsibility, thoughtful decision making, positive 54.11 conflict resolution, useful coping skills, critical thinking, 54.12 listening and watching skills, and personal safety; 54.13 (2) planning materials, guidelines, and other accurate 54.14 information on preventing physical and emotional violence, 54.15 identifying and reducing the incidence of sexual, racial, and 54.16 cultural harassment, and reducing child abuse and neglect; 54.17 (3) a special parent education component of early childhood 54.18 family education programs to prevent child abuse and neglect and 54.19 to promote positive parenting skills, giving priority to 54.20 services and outreach programs for at-risk families; 54.21 (4) involvement of parents and other community members, 54.22 including the clergy, business representatives, civic leaders, 54.23 local elected officials, law enforcement officials, and the 54.24 county attorney; 54.25 (5) collaboration with local community services, agencies, 54.26 and organizations that assist in violence intervention or 54.27 prevention, including family-based services, crisis services, 54.28 life management skills services, case coordination services, 54.29 mental health services, and early intervention services; 54.30 (6) collaboration among districts and service cooperatives; 54.31 (7) targeting early adolescents for prevention efforts, 54.32 especially early adolescents whose personal circumstances may 54.33 lead to violent or harassing behavior; 54.34 (8) opportunities for teachers to receive in-service 54.35 training or attend other programs on strategies or curriculum 54.36 designed to assist students in intervening in or preventing 55.1 violence in school and at home; and 55.2 (9) administrative policies that reflect, and a staff that 55.3 models, nonviolent behaviors that do not display or condone 55.4 sexual, racial, or cultural harassment or student hazing. 55.5 (c) The department may provide assistance at a neutral site 55.6 to a nonpublic school participating in a district's program. 55.7 Sec. 15. [120B.25] [AMERICAN HERITAGE EDUCATION.] 55.8 School districts shall permit grade-level instruction for 55.9 students to read and study America's founding documents, 55.10 including documents that contributed to the foundation or 55.11 maintenance of America's representative form of limited 55.12 government, the Bill of Rights, our free-market economic system, 55.13 and patriotism. 55.14 Sec. 16. Minnesota Statutes 2004, section 120B.30, 55.15 subdivision 1, is amended to read: 55.16 Subdivision 1. [STATEWIDE TESTING.] (a) The commissioner, 55.17 with advice from experts with appropriate technical 55.18 qualifications and experience and stakeholders, consistent with 55.19 subdivision 1a, shall include in the comprehensive assessment 55.20 system, for each grade level to be tested, state-constructed 55.21 tests developed from and aligned with the state's required 55.22 academic standards under section 120B.021 and administered 55.23 annually to all students in grades 3 through 8 and at the high 55.24 school level. A state-developed test in a subject other than 55.25 writing, developed after the 2002-2003 school year, must include 55.26 bothmultiple choicemachine-scoreable and constructed response 55.27 questions. The commissioner shall establish one or more months 55.28 during which schools shall administer the tests to students each 55.29 school year. For students enrolled in grade 8 before the 55.30 2005-2006 school year, only Minnesota basic skills tests in 55.31 reading, mathematics, and writing shall fulfill students' basic 55.32 skills testing requirements for a passing state notation. The 55.33 passing scores of the state tests in reading and mathematics are 55.34 the equivalent of: 55.35 (1) 70 percent correct for students entering grade 9 in 55.36 1996; and 56.1 (2) 75 percent correct for students entering grade 9 in 56.2 1997 and thereafter, as based on the first uniform test 56.3 administration of February 1998. 56.4 For students enrolled in grade 8 in the 2005-2006 school 56.5 year and later, only the Minnesota Comprehensive Assessments 56.6 Second Edition (MCA-IIs) in reading, mathematics, and writing 56.7 shall fulfill students' academic standard requirements. 56.8 (b) The third through 8th grade and high school level test 56.9 results shall be available to districts for diagnostic purposes 56.10 affecting student learning and district instruction and 56.11 curriculum, and for establishing educational accountability. 56.12 The commissioner must disseminate to the public the test results 56.13 upon receiving those results. 56.14 (c) State tests must be constructed and aligned with state 56.15 academic standards. The testing process and the order of 56.16 administration shall be determined by the commissioner. The 56.17 statewide results shall be aggregated at the site and district 56.18 level, consistent with subdivision 1a. 56.19 (d) In addition to the testing and reporting requirements 56.20 under this section, the commissioner shall include the following 56.21 components in the statewide public reporting system: 56.22 (1) uniform statewide testing of all students in grades 3 56.23 through 8 and at the high school level that provides exemptions, 56.24 only with parent or guardian approval, for those very few 56.25 students for whom the student's individual education plan team 56.26 under sections 125A.05 and 125A.06, determines that the student 56.27 is incapable of taking a statewide test, or for a limited 56.28 English proficiency student under section 124D.59, subdivision 56.29 2, if the student has been in the United States for fewer than 56.30 three years; 56.31 (2) educational indicators that can be aggregated and 56.32 compared across school districts and across time on a statewide 56.33 basis, including average daily attendance, high school 56.34 graduation rates, and high school drop-out rates by age and 56.35 grade level; 56.36 (3) students' scores on the American College Test; and 57.1 (4) state results from participation in the National 57.2 Assessment of Educational Progress so that the state can 57.3 benchmark its performance against the nation and other states, 57.4 and, where possible, against other countries, and contribute to 57.5 the national effort to monitor achievement. 57.6 (e) Districts must report exemptions under paragraph (d), 57.7 clause (1), to the commissioner consistent with a format 57.8 provided by the commissioner. 57.9 Sec. 17. Minnesota Statutes 2004, section 120B.30, 57.10 subdivision 1a, is amended to read: 57.11 Subd. 1a. [STATEWIDE AND LOCAL ASSESSMENTS; RESULTS.] (a) 57.12 The commissioner must developlanguage artsreading, 57.13 mathematics, and science assessments aligned with state academic 57.14 standards that districts and sites must use to monitor student 57.15 growth toward achieving those standards. The commissioner must 57.16 not develop statewide assessments for academic standards in 57.17 social studies, health and physical education, and the arts. 57.18 The commissioner must require: 57.19 (1) annuallanguage artsreading and mathematics 57.20 assessments in grades 3 through 8 and at the high school level 57.21 for the 2005-2006 school year and later; and 57.22 (2) annual science assessments in one grade in the grades 3 57.23 through 5 span, the grades 6 through 9 span, and a life sciences 57.24 assessment in the grades 10 through 12 span for the 2007-2008 57.25 school year and later. 57.26 (b) The commissioner must ensure that all statewide tests 57.27 administered to elementary and secondary students measure 57.28 students' academic knowledge and skills and not students' 57.29 values, attitudes, and beliefs. 57.30 (c) Reporting of assessment results must: 57.31 (1) provide timely, useful, and understandable information 57.32 on the performance of individual students, schools, school 57.33 districts, and the state; 57.34 (2) include, by the 2006-2007 school year, a value-added 57.35 component to measure student achievement growth over time; and 57.36 (3)(i) for students enrolled in grade 8 before the 58.1 2005-2006 school year, determine whether students have met the 58.2 state's basic skills requirements; or 58.3 (ii) for students enrolled in grade 8 in the 2005-2006 58.4 school year and later, determine whether students have met the 58.5 state's academic standards. 58.6 (d) Consistent with applicable federal law and subdivision 58.7 1, paragraph (d), clause (1), the commissioner must include 58.8 alternative assessments for the very few students with 58.9 disabilities for whom statewide assessments are inappropriate 58.10 and for students with limited English proficiency. 58.11 (e) A school, school district, and charter school must 58.12 administer statewide assessments under this section, as the 58.13 assessments become available, to evaluate student progress in 58.14 achieving the academic standards. If a state assessment is not 58.15 available, a school, school district, and charter school must 58.16 determine locally if a student has met the required academic 58.17 standards. A school, school district, or charter school may use 58.18 a student's performance on a statewide assessment as one of 58.19 multiple criteria to determine grade promotion or retention. A 58.20 school, school district, or charter school may use a high school 58.21 student's performance on a statewide assessment as a percentage 58.22 of the student's final grade in a course, or place a student's 58.23 assessment score on the student's transcript. 58.24 Sec. 18. Minnesota Statutes 2004, section 120B.30, is 58.25 amended by adding a subdivision to read: 58.26 Subd. 4. [ACCESS TO TESTS.] The commissioner must adopt 58.27 and publish a policy to provide public and parental access for 58.28 review of basic skills tests, Minnesota Comprehensive 58.29 Assessments, or any other such statewide test and assessment. 58.30 Upon receiving a written request, the commissioner must make 58.31 available to parents or guardians a copy of their student's 58.32 actual answer sheet to the test questions to be reviewed by the 58.33 parent. 58.34 Sec. 19. [120B.361] [VALUE-ADDED ASSESSMENT PROGRAM.] 58.35 (a) The commissioner of education must implement a 58.36 value-added assessment program to assist school districts, 59.1 public schools, and charter schools in assessing and reporting 59.2 students' growth in academic achievement under section 120B.30, 59.3 subdivision 1a. The program must use assessments consistent 59.4 with paragraph (d) of students' academic achievement to make 59.5 longitudinal comparisons of each student's academic growth over 59.6 time. School districts, public schools, and charter schools may 59.7 apply to the commissioner to participate in the initial trial 59.8 program using a form and in the manner the commissioner 59.9 prescribes. The commissioner must select program participants 59.10 from urban, suburban, and rural areas throughout the state. 59.11 (b) The commissioner may issue a request for a proposal to 59.12 contract with an organization that provides a value-added 59.13 assessment model that uses fully adaptive computer-based 59.14 assessments that reliably estimates school and school district 59.15 effects on students' academic achievement over time. The model 59.16 the commissioner selects must use each student's test data 59.17 across grades. 59.18 (c) The contract under paragraph (b) must be consistent 59.19 with the definition of "best value" under section 16C.02, 59.20 subdivision 4, and may not be executed until the state has 59.21 authority to use the assessments described in paragraph (d) for 59.22 purposes of the No Child Left Behind Act, Public Law 107-110. 59.23 (d) In connection with implementation of the value-added 59.24 assessment program, the department must request and obtain from 59.25 the United States Department of Education authority to use fully 59.26 adaptive computer-based assessments that accurately measure 59.27 student achievement and growth over time. The assessments must 59.28 be aligned with Minnesota standards, use a common scale score 59.29 over multiple grades or ages, and be capable of being used for 59.30 source data for a growth or value-added model of school 59.31 evaluation. 59.32 (e) In implementing the value-added assessment program, the 59.33 commissioner must report assessment result data in a way that 59.34 shows the growth trends over time for students in four groups: 59.35 (1) performing above grade level; 59.36 (2) performing at grade level; 60.1 (3) approaching grade-level performance; and 60.2 (4) performing significantly below grade level. 60.3 [EFFECTIVE DATE.] This section is effective the day 60.4 following final enactment. 60.5 Sec. 20. Minnesota Statutes 2004, section 121A.06, 60.6 subdivision 2, is amended to read: 60.7 Subd. 2. [REPORTS; CONTENT.]By January 1, 1994, the60.8commissioner, in consultation with the criminal and juvenile60.9information policy group, shall develop a standardized form to60.10be used by schools to report incidents involving the use or60.11possession of a dangerous weapon in school zones.School 60.12 districts must electronically report to the commissioner of 60.13 education incidents involving the use or possession of a 60.14 dangerous weapon in school zones. The formshallmust include 60.15 the following information: 60.16 (1) a description of each incident, including a description 60.17 of the dangerous weapon involved in the incident; 60.18 (2) where, at what time, and under what circumstances the 60.19 incident occurred; 60.20 (3) information about the offender, other than the 60.21 offender's name, including the offender's age; whether the 60.22 offender was a student and, if so, where the offender attended 60.23 school; and whether the offender was under school expulsion or 60.24 suspension at the time of the incident; 60.25 (4) information about the victim other than the victim's 60.26 name, if any, including the victim's age; whether the victim was 60.27 a student and, if so, where the victim attended school; and if 60.28 the victim was not a student, whether the victim was employed at 60.29 the school; 60.30 (5) the cost of the incident to the school and to the 60.31 victim; and 60.32 (6) the action taken by the school administration to 60.33 respond to the incident. 60.34 The commissioneralsoshalldevelopprovide analternative60.35 electronic reporting format that allows school districts to 60.36 provide aggregate data, with an option to use computer61.1technology to report the data. 61.2 Sec. 21. Minnesota Statutes 2004, section 121A.06, 61.3 subdivision 3, is amended to read: 61.4 Subd. 3. [REPORTS; FILING REQUIREMENTS.] ByFebruary 1 and61.5 July131 of each year, each school, other than a home-school, 61.6 shall report incidents involving the use or possession of a 61.7 dangerous weapon in school zones to the commissioner. The 61.8 reports by public schools must bemade on the standardized forms61.9or using the alternative formatsubmitted using the electronic 61.10 reporting system developed by the commissioner under subdivision 61.11 2. The commissioner shall compile the information it receives 61.12 from the schools and report it annually to the commissioner of 61.13 public safety, the criminal and juvenile information policy61.14group,and the legislature. 61.15 Sec. 22. [121A.0695] [SCHOOL BOARD POLICY; PROHIBITING 61.16 INTIMIDATION AND BULLYING.] 61.17 Subdivision 1. [INTIMIDATION OR BULLYING 61.18 DEFINED.] "Intimidation or bullying" means an intentional 61.19 gesture or a written, oral, or physical act or threat that a 61.20 reasonable person under the circumstances knows or should know 61.21 has the effect of: 61.22 (1) harming a student; 61.23 (2) damaging a student's property; 61.24 (3) placing a student in reasonable fear of harm to the 61.25 student's person; 61.26 (4) placing a student in reasonable fear of damage to the 61.27 student's property; or 61.28 (5) creating a severe or persistent environment of 61.29 intimidation or abuse. 61.30 Subd. 2. [MODEL POLICY.] The commissioner of education 61.31 shall maintain and make available to school boards and other 61.32 schools a model policy prohibiting intimidation and bullying 61.33 that addresses the requirements of subdivision 3. 61.34 Subd. 3. [SCHOOL BOARD POLICY.] Each school board shall 61.35 adopt a written policy prohibiting intimidation and bullying of 61.36 any student, including, but not limited to, the acts defined in 62.1 subdivision 1. The policy must describe the behavior expected 62.2 of each student and state the consequences for and the 62.3 appropriate remedial action to be taken against the person 62.4 acting to intimidate or bully. The policy must include 62.5 reporting procedures, including, at a minimum, requiring school 62.6 personnel to report student intimidation or bullying incidents 62.7 and allowing persons to report incidents anonymously. Each 62.8 district must integrate into its violence prevention program 62.9 under section 120B.22, if applicable, behavior and expectations 62.10 established under this section. Each school must include the 62.11 policy in the student handbook on school policies. 62.12 [EFFECTIVE DATE.] This section is effective for the 62.13 2005-2006 school year and later. 62.14 Sec. 23. [121A.222] [POSSESSION AND USE OF NONPRESCRIPTION 62.15 PAIN RELIEVERS BY SECONDARY STUDENTS.] 62.16 A secondary student may possess and use nonprescription 62.17 pain relief in a manner consistent with the labeling, if the 62.18 district has received a written authorization from the student's 62.19 parent permitting the student to self-administer the 62.20 medication. The parent must submit written authorization for 62.21 the student to self-administer the medication each school year. 62.22 The district may revoke a student's privilege to possess and use 62.23 nonprescription pain relievers if the district determines that 62.24 the student is abusing the privilege. 62.25 Sec. 24. [121A.231] [COMPREHENSIVE FAMILY LIFE AND 62.26 SEXUALITY EDUCATION PROGRAMS.] 62.27 Subdivision 1. [DEFINITIONS.] (a) "Comprehensive family 62.28 life and sexuality education" means education in grades 7 62.29 through 12 that: 62.30 (1) respects community values and encourages family 62.31 communication; 62.32 (2) develops skills in communication, decision making, and 62.33 conflict resolution; 62.34 (3) contributes to healthy relations; 62.35 (4) provides human development and sexuality education that 62.36 is age appropriate and medically accurate; 63.1 (5) promotes responsible sexual behavior, including an 63.2 abstinence-first approach to delaying initiation to sexual 63.3 activity that emphasizes abstinence while also including 63.4 education about the use of protection and contraception; and 63.5 (6) promotes individual responsibility. 63.6 (b) "Age appropriate" refers to topics, messages, and 63.7 teaching methods suitable to particular ages or age groups of 63.8 children and adolescents, based on developing cognitive, 63.9 emotional, and behavioral capacity typical for the age or age 63.10 group. 63.11 (c) "Medically accurate" means verified or supported by 63.12 research conducted in compliance with scientific methods and 63.13 published in peer-reviewed journals, where appropriate, and 63.14 recognized as accurate and objective by professional 63.15 organizations and agencies in the relevant field, such as the 63.16 federal Centers for Disease Control and Prevention, the American 63.17 Public Health Association, the American Academy of Pediatrics, 63.18 or the American College of Obstetricians and Gynecologists. 63.19 Subd. 2. [CURRICULUM REQUIREMENTS.] (a) A school district 63.20 may offer and may independently establish policies, procedures, 63.21 curriculum, and services for providing comprehensive family life 63.22 and sexuality education that is age appropriate and medically 63.23 accurate for kindergarten through grade 6. 63.24 (b) A school district must offer and may independently 63.25 establish policies, procedures, curriculum, and services for 63.26 providing comprehensive family life and sexuality education that 63.27 is age appropriate and medically accurate for grades 7 through 63.28 12. 63.29 Subd. 3. [NOTICE AND PARENTAL OPTIONS.] (a) It is the 63.30 legislature's intent to encourage pupils to communicate with the 63.31 pupils' parents or guardians about human sexuality and to 63.32 respect rights of parents or guardians to supervise the parents' 63.33 or guardians' children's education on these subjects. 63.34 (b) Parents or guardians may excuse the parents' or 63.35 guardians' children from all or part of a comprehensive family 63.36 life and sexuality education program. 64.1 (c) A school district must establish procedures for 64.2 providing parents or guardians reasonable notice with the 64.3 following information: 64.4 (1) if the district is offering a comprehensive family life 64.5 and sexuality education program to the parents' or guardians' 64.6 child during the course of the year; 64.7 (2) how the parents or guardians may inspect the written 64.8 and audiovisual educational materials used in the program and 64.9 the process for inspection; 64.10 (3) if the program is presented by school district 64.11 personnel or outside consultants, and if outside consultants are 64.12 used, who they may be; and 64.13 (4) the right to choose not to have the parents' or 64.14 guardians' child participate in the program and the procedure 64.15 for exercising that right. 64.16 (d) A school district must establish procedures for 64.17 reasonably restricting the availability of written and 64.18 audiovisual educational materials from public view of students 64.19 who have been excused from all or part of a comprehensive family 64.20 life and sexuality education program at the request of a parent 64.21 or guardian. 64.22 Sec. 25. Minnesota Statutes 2004, section 121A.53, is 64.23 amended to read: 64.24 121A.53 [REPORT TO COMMISSIONER OF EDUCATION.] 64.25 Subdivision 1. [EXCLUSIONS AND EXPULSIONS.] The school 64.26 boardshallmust report through the department electronic 64.27 reporting system each exclusion or expulsion within 30 days of 64.28 the effective date of the action to the commissioner of 64.29 education. This reportshallmust include a statement of 64.30 alternative educational services given the pupil and the reason 64.31 for, the effective date, and the duration of the exclusion or 64.32 expulsion. The report must also include the student's age, 64.33 grade, gender, race, and special education status. 64.34 Subd. 2. [REPORT.] The school board must include state 64.35 student identification numbers of affected pupils on all 64.36 dismissal reports required by the department. The department 65.1 must report annually to the commissioner summary data on the 65.2 number of dismissals by age, grade, gender, race, and special 65.3 education status of the affected pupils. All dismissal reports 65.4 must be submitted through the department electronic reporting 65.5 system. 65.6 Sec. 26. Minnesota Statutes 2004, section 122A.06, 65.7 subdivision 4, is amended to read: 65.8 Subd. 4. [COMPREHENSIVE, SCIENTIFICALLY BASED READING 65.9 INSTRUCTION.]"Comprehensive, scientifically based reading65.10instruction" includes instruction and practice in phonemic65.11awareness, phonics and other word-recognition skills, and guided65.12oral reading for beginning readers, as well as extensive silent65.13reading, vocabulary instruction, instruction in comprehension,65.14and instruction that fosters understanding and higher-order65.15thinking for readers of all ages and proficiency65.16levels."Comprehensive, scientifically based reading 65.17 instruction" includes a program or collection of instructional 65.18 practices with demonstrated success in instructing learners and 65.19 reliable and valid evidence to support the conclusion that when 65.20 these methods are used with learners, learners can be expected 65.21 to achieve, at a minimum, satisfactory progress in reading 65.22 achievement. The program or collection of practices must 65.23 include, at a minimum, instruction in five areas of reading: 65.24 phonemic awareness, phonics, fluency, vocabulary, and text 65.25 comprehension. 65.26 Comprehensive, scientifically based reading instruction 65.27 also includes and integrates instructional strategies for 65.28 continuously assessing and evaluating the learner's reading 65.29 progress and needs in order to design and implement ongoing 65.30 interventions so that learners of all ages and proficiency 65.31 levels can read and comprehend text and apply higher-level 65.32 thinking skills. 65.33 Sec. 27. Minnesota Statutes 2004, section 122A.12, 65.34 subdivision 2, is amended to read: 65.35 Subd. 2. [TERMS; COMPENSATION; REMOVAL; ADMINISTRATION; 65.36 REIMBURSEMENT.] (a) Membership terms, removal of members, and 66.1 the filling of membership vacancies are as provided in section 66.2 214.09. The terms of the initial board members must be 66.3 determined by lot as follows: 66.4 (1) three members must be appointed for terms that expire 66.5 August 1, 2002; 66.6 (2) three members must be appointed for terms that expire 66.7 August 1, 2003; and 66.8 (3) four members must be appointed for terms that expire 66.9 August 1, 2004. 66.10 Members shall not receive the daily payment under section 66.11 214.09, subdivision 3. The public employer of a member shall 66.12 not reduce the member's compensation or benefits for the 66.13 member's absence from employment when engaging in the business 66.14 of the board. The provision of staff, administrative services, 66.15 and office space; the review and processing of complaints; the 66.16 setting of fees; the selection and duties of an executive 66.17 secretary to serve the board; and other provisions relating to 66.18 board operations are as provided in chapter 214. Fiscal year 66.19 and reporting requirements are as provided in sections 214.07 66.20 and 214.08. 66.21 (b) The board may reimburse local school districts for the 66.22 cost of a substitute teacher employed when a regular teacher is 66.23 providing professional assistance to the state by serving on the 66.24 board or on a committee or task force appointed by the board. 66.25 Sec. 28. Minnesota Statutes 2004, section 122A.18, 66.26 subdivision 2a, is amended to read: 66.27 Subd. 2a. [READING STRATEGIES.] (a) All colleges and 66.28 universities approved by the Board of Teaching to prepare 66.29 persons for classroom teacher licensure must include in their 66.30 teacher preparation programsreading best practices that enable66.31classroom teacher licensure candidates to know how to teach66.32reading, such as phonics or otherresearch-based best practices 66.33 in reading, consistent with section 122A.06, subdivision 4, that 66.34 enable the licensure candidate to know how to teach reading in 66.35 the candidate's content areas. 66.36 (b) Board-approved teacher preparation programs for 67.1 teachers of elementary education must require instruction in the 67.2 application of comprehensive, scientifically based, and balanced 67.3 reading instruction programs.that: 67.4 (1) teach students to read using foundational knowledge, 67.5 practices, and strategies consistent with section 122A.06, 67.6 subdivision 4, so that all students will achieve continuous 67.7 progress in reading; and 67.8 (2) teach specialized instruction in reading strategies, 67.9 interventions, and remediations that enable students of all ages 67.10 and proficiency levels to become proficient readers. 67.11 Sec. 29. Minnesota Statutes 2004, section 122A.40, 67.12 subdivision 5, is amended to read: 67.13 Subd. 5. [PROBATIONARY PERIOD.] (a) The first three 67.14 consecutive years of a teacher's first teaching experience in 67.15 Minnesota in a single district is deemed to be a probationary 67.16 period of employment, and after completion thereof, the 67.17 probationary period in each district in which the teacher is 67.18 thereafter employed shall be one year. The school board must 67.19 adopt a plan for written evaluation of teachers during the 67.20 probationary period. Evaluation must occur at least three times 67.21 each year for a teacher performing services on 120 or more 67.22 school days, at least two times each year for a teacher 67.23 performing services on 60 to 119 school days, and at least one 67.24 time each year for a teacher performing services on fewer than 67.25 60 school days. Days devoted to parent-teacher conferences, 67.26 teachers' workshops, and other staff development opportunities 67.27 and days on which a teacher is absent from school must not be 67.28 included in determining the number of school days on which a 67.29 teacher performs services. Except as otherwise provided in 67.30 paragraph (b), during the probationary period any annual 67.31 contract with any teacher may or may not be renewed as the 67.32 school board shall see fit. However, the board must give any 67.33 such teacher whose contract it declines to renew for the 67.34 following school year written notice to that effect before July 67.35 1. If the teacher requests reasons for any nonrenewal of a 67.36 teaching contract, the board must give the teacher its reason in 68.1 writing, including a statement that appropriate supervision was 68.2 furnished describing the nature and the extent of such 68.3 supervision furnished the teacher during the employment by the 68.4 board, within ten days after receiving such request. The school 68.5 board may, after a hearing held upon due notice, discharge a 68.6 teacher during the probationary period for cause, effective 68.7 immediately, under section 122A.44. 68.8 (b) A board must discharge a probationary teacher, 68.9 effective immediately, upon receipt of notice under section 68.10 122A.20, subdivision 1, paragraph (b), that the teacher's 68.11 license has been revoked due to a conviction for child abuse or 68.12 sexual abuse. 68.13 (c) A probationary teacher must complete at least 60 days 68.14 of teaching service each year during the probationary period. 68.15 Days devoted to parent-teacher conferences, teachers' workshops, 68.16 and other staff development opportunities and days on which a 68.17 teacher is absent from school do not count as days of teaching 68.18 service under this paragraph. 68.19 (d) A probationary teacher whose first three years of 68.20 consecutive employment is interrupted for active military 68.21 service and who promptly resumes teaching consistent with 68.22 federal reemployment timelines for uniformed service personnel 68.23 under United States Code, title 38, section 4312(e), is 68.24 considered to have a consecutive teaching experience for 68.25 purposes of paragraph (a). 68.26 [EFFECTIVE DATE.] Paragraph (c) of this section is 68.27 effective July 1, 2005. Paragraph (d) of this section is 68.28 retroactively effective from September 10, 2001, and applies to 68.29 those probationary teachers absent for active military service 68.30 beginning on September 10, 2001, or later. 68.31 Sec. 30. Minnesota Statutes 2004, section 122A.41, 68.32 subdivision 2, is amended to read: 68.33 Subd. 2. [PROBATIONARY PERIOD; DISCHARGE OR DEMOTION.] (a) 68.34 All teachers in the public schools in cities of the first class 68.35 during the first three years of consecutive employment shall be 68.36 deemed to be in a probationary period of employment during which 69.1 period any annual contract with any teacher may, or may not, be 69.2 renewed as the school board, after consulting with the peer 69.3 review committee charged with evaluating the probationary 69.4 teachers under subdivision 3, shall see fit. The school site 69.5 management team or the school board if there is no school site 69.6 management team, shall adopt a plan for a written evaluation of 69.7 teachers during the probationary period according to subdivision 69.8 3. Evaluation by the peer review committee charged with 69.9 evaluating probationary teachers under subdivision 3 shall occur 69.10 at least three times each year for a teacher performing services 69.11 on 120 or more school days, at least two times each year for a 69.12 teacher performing services on 60 to 119 school days, and at 69.13 least one time each year for a teacher performing services on 69.14 fewer than 60 school days. Days devoted to parent-teacher 69.15 conferences, teachers' workshops, and other staff development 69.16 opportunities and days on which a teacher is absent from school 69.17 shall not be included in determining the number of school days 69.18 on which a teacher performs services. The school board may, 69.19 during such probationary period, discharge or demote a teacher 69.20 for any of the causes as specified in this code. A written 69.21 statement of the cause of such discharge or demotion shall be 69.22 given to the teacher by the school board at least 30 days before 69.23 such removal or demotion shall become effective, and the teacher 69.24 so notified shall have no right of appeal therefrom. 69.25 (b) A probationary teacher must complete at least 60 days 69.26 of teaching service each year during the probationary period. 69.27 Days devoted to parent-teacher conferences, teachers' workshops, 69.28 and other staff development opportunities and days on which a 69.29 teacher is absent from school do not count as days of teaching 69.30 service under this paragraph. 69.31 (c) A probationary teacher whose first three years of 69.32 consecutive employment is interrupted for active military 69.33 service and who promptly resumes teaching consistent with 69.34 federal reemployment timelines for uniformed service personnel 69.35 under United States Code, title 38, section 4312(e), is 69.36 considered to have a consecutive teaching experience for 70.1 purposes of paragraph (a). 70.2 [EFFECTIVE DATE.] Paragraph (b) of this section is 70.3 effective July 1, 2005. Paragraph (c) of this section is 70.4 retroactively effective from September 10, 2001, and applies to 70.5 those probationary teachers absent for active military service 70.6 beginning on September 10, 2001, or later. 70.7 Sec. 31. Minnesota Statutes 2004, section 122A.41, 70.8 subdivision 5a, is amended to read: 70.9 Subd. 5a. [PROBATIONARY PERIOD FOR PRINCIPALS HIRED 70.10 INTERNALLY.] A board and the exclusive representative of the 70.11 school principals in the district may negotiate a plan for a 70.12 probationary period of up to two school years for licensed 70.13 teachers employed by the board who are subsequently employed by 70.14 the board as a licensed school principal or assistant principal 70.15 and an additional probationary period of up to two years for 70.16 licensed assistant principals employed by the board who are 70.17 subsequently employed by the board as a licensed school 70.18 principal. 70.19 [EFFECTIVE DATE.] This section is effective August 1, 2005. 70.20 Sec. 32. Minnesota Statutes 2004, section 122A.41, 70.21 subdivision 14, is amended to read: 70.22 Subd. 14. [SERVICES TERMINATED BY DISCONTINUANCE OR LACK 70.23 OF PUPILS; PREFERENCE GIVEN.] (a) A teacher whose services are 70.24 terminated on account of discontinuance of position or lack of 70.25 pupils must receive first consideration for other positions in 70.26 the district for which that teacher is qualified. In the event 70.27 it becomes necessary to discontinue one or more positions, in 70.28 making such discontinuance, teachers must be discontinued in any 70.29 department in the inverse order in which they were employed, 70.30 unless a board and the exclusive representative of teachers in 70.31 the district negotiate a plan providing otherwise. 70.32 (b) Notwithstanding the provisions of clause (a), a teacher 70.33 is not entitled to exercise any seniority when that exercise 70.34 results in that teacher being retained by the district in a 70.35 field for which the teacher holds only a provisional license, as 70.36 defined by the Board of Teaching, unless that exercise of 71.1 seniority results in the termination of services, on account of 71.2 discontinuance of position or lack of pupils, of another teacher 71.3 who also holds a provisional license in the same field. The 71.4 provisions of this clause do not apply to vocational education 71.5 licenses. 71.6 (c) Notwithstanding the provisions of clause (a), a teacher 71.7 must not be reinstated to a position in a field in which the 71.8 teacher holds only a provisional license, other than a 71.9 vocational education license, while another teacher who holds a 71.10 nonprovisional license in the same field is available for 71.11 reinstatement. 71.12 [EFFECTIVE DATE.] This section is effective August 1, 2005. 71.13 Sec. 33. Minnesota Statutes 2004, section 122A.413, is 71.14 amended to read: 71.15 122A.413 [EDUCATIONAL IMPROVEMENT PLAN.] 71.16 Subdivision 1. [QUALIFYING PLAN.] A district may develop 71.17 an educational improvement plan for the purpose of qualifying 71.18 foralternative teacher compensation aidthe professional 71.19 compensation initiative undersections 122A.414 and71.20122A.415section 122A.4142. The plan must include measures for 71.21 improving school district, school site, teacher, and individual 71.22 student performance. 71.23 Subd. 2. [PLAN COMPONENTS.] The educational improvement 71.24 plan must be approved by the school board and have at least 71.25 these elements: 71.26 (1) assessment and evaluation tools to measure student 71.27 performance and progress; 71.28 (2) performance goals and benchmarks for improvement; 71.29 (3) measures of student attendance and completion rates; 71.30 (4) a rigorous professional development system, consistent 71.31 with section 122A.60, that is aligned with educational 71.32 improvement, designed to achieve teaching quality improvement, 71.33 and consistent with clearly defined research-based standards; 71.34 (5) measures of student, family, and community involvement 71.35 and satisfaction; 71.36 (6) a data system about students and their academic 72.1 progress that provides parents and the public with 72.2 understandable information;and72.3 (7) a teacher induction and mentoring program for 72.4 probationary teachers that provides continuous learning and 72.5 sustained teacher support. The process for developing the plan72.6must involve district teachers; and 72.7 (8) substantial teacher participation in developing the 72.8 plan, including teachers selected by the exclusive 72.9 representative of the teachers. 72.10 Subd. 3. [SCHOOL SITE ACCOUNTABILITY.] A district that 72.11 develops a plan under subdivisions 1 and 2 must ensure that each 72.12 school site develops a board-approved educational improvement 72.13 plan that is aligned with the district educational improvement 72.14 plan under subdivision 2 and developed with teacher 72.15 participation consistent with subdivision 2, clause (8). While 72.16 a site plan must be consistent with the district educational 72.17 improvement plan, it may establish performance goals and 72.18 benchmarks that meet or exceed those of the district.The72.19process for developing the plan must involve site teachers.72.20 Sec. 34. [122A.4142] [PROFESSIONAL COMPENSATION 72.21 INITIATIVE.] 72.22 Subdivision 1. [PROFESSIONAL COMPENSATION AGREEMENT.] A 72.23 school district and the exclusive representative of the teachers 72.24 may adopt, by agreement, professional compensation under 72.25 subdivision 2 to provide incentives to attract and retain 72.26 high-quality teachers and instructional staff, encourage 72.27 high-quality teachers to accept difficult assignments, encourage 72.28 teachers to improve their knowledge and skills, and support 72.29 teachers' roles in improving students' educational achievement. 72.30 Subd. 2. [ELIGIBILITY.] (a) To be eligible to participate 72.31 in the professional compensation initiative in fiscal year 2006, 72.32 a school district must comply with the conditions stated in 72.33 paragraph (b) or with the following conditions: 72.34 (1) submit to the department a letter of intent executed by 72.35 the school district and the exclusive representative of the 72.36 teachers to complete planning for and satisfy the conditions for 73.1 participation in fiscal year 2007 and later; 73.2 (2) reserve at least two percent of basic revenue for staff 73.3 development purposes consistent with sections 122A.60 and 73.4 122A.61, subdivision 1; and 73.5 (3) commit to spending at least the additional one percent 73.6 of basic revenue available through participation in the 73.7 professional compensation initiative for staff development 73.8 supporting the development of a district educational improvement 73.9 plan and site-based educational improvement plan under section 73.10 122A.413 and for developing the professional compensation 73.11 agreement under this section. 73.12 (b) To be eligible to participate in the professional 73.13 compensation initiative in fiscal year 2007 and later, a school 73.14 district must submit to the department: 73.15 (1) a districtwide or site-based educational improvement 73.16 plan as described in section 122A.413; and 73.17 (2) an executed collective bargaining agreement that 73.18 contains at least the following elements: 73.19 (i) a description of the conditions or actions necessary 73.20 for career advancement and additional compensation; 73.21 (ii) compensation provisions that base at least 60 percent 73.22 of any increase in compensation on performance and not on years 73.23 of service or the attainment of additional education or 73.24 training; 73.25 (iii) career advancement options for teachers retaining 73.26 primary roles in student instruction, including staff 73.27 development activities, and for other members of the bargaining 73.28 unit; 73.29 (iv) incentives for teachers' continuous improvement in 73.30 content knowledge, pedagogy, and use of best practices; 73.31 (v) an objective evaluation program, including classroom or 73.32 performance observation, that is aligned with the district's or 73.33 site's educational improvement plan, and is a component of 73.34 determining performance; 73.35 (vi) provisions preventing any teacher's compensation from 73.36 being reduced as a result of implementing professional 74.1 compensation for teachers; 74.2 (vii) provisions enabling any teacher in the district, if 74.3 professional compensation for teachers is applied districtwide, 74.4 or at a site, if professional compensation for teachers applies 74.5 only to a site, to participate in professional compensation for 74.6 teachers without limitations by quota or other restrictions; 74.7 (viii) provisions encouraging collaboration among teachers 74.8 rather than competition; and 74.9 (ix) provisions for participation by all teachers in a 74.10 district, all teachers at a site, or at least 25 percent of the 74.11 teachers in a district. 74.12 (c) An agreement may contain different compensation 74.13 provisions for separate classifications of employees. 74.14 Subd. 3. [COMMISSIONER APPROVAL.] (a) Before concluding a 74.15 collective bargaining agreement, a district may submit a 74.16 proposed agreement and educational improvement plan for review, 74.17 comment, and preliminary approval by the commissioner. If the 74.18 plan and agreement are executed in the same form as 74.19 preliminarily approved by the commissioner, the plan and 74.20 agreement must be approved without further review. 74.21 (b) The application to the commissioner must contain a 74.22 formally adopted collective bargaining agreement, memorandum of 74.23 understanding, or other binding agreement that implements the 74.24 professional compensation initiative consistent with this 74.25 section. 74.26 (c) The commissioner's approval must be based on the 74.27 requirements established in subdivision 2. If the commissioner 74.28 does not approve an application, the notice to the school 74.29 district must provide details regarding the commissioner's 74.30 reason for rejecting the application. 74.31 Subd. 4. [PROFESSIONAL COMPENSATION REVENUE.] (a) 74.32 Professional compensation revenue for a school district that 74.33 qualifies for participation under subdivision 2, paragraph (a), 74.34 equals one percent of basic revenue. 74.35 (b) For participation in fiscal year 2007 and later, the 74.36 school district's application must be approved by the 75.1 commissioner under subdivision 3. 75.2 (c) Professional compensation revenue for a qualifying 75.3 school district, site, or portion of a district or school site 75.4 that qualifies for participation under subdivision 2, paragraph 75.5 (b), is as follows: 75.6 (1) for a school district in which the school board and the 75.7 exclusive representative of the teachers agree to place all 75.8 teachers in the district in the professional compensation for 75.9 teachers initiative, revenue equals one percent of the 75.10 district's basic revenue for the fiscal year; or if a site only 75.11 is participating, the portion of one percent attributable to the 75.12 site's number of pupils enrolled on October 1 of the previous 75.13 fiscal year; or 75.14 (2) for a district in which the school board and the 75.15 exclusive representative of the teachers agree that at least 25 75.16 percent of the district's licensed teachers will participate in 75.17 the professional compensation initiative revenue equals one 75.18 percent of basic revenue for the fiscal year multiplied by the 75.19 percentage of participating teachers. 75.20 Subd. 5. [PERCENTAGE OF TEACHERS.] For purposes of 75.21 subdivision 4, the percentage of teachers participating in the 75.22 professional compensation initiative equals the ratio of the 75.23 number of licensed teachers who are working at least 60 percent 75.24 of a full-time teacher's hours and agree to participate in the 75.25 initiative to the total number of licensed teachers who are 75.26 working at least 60 percent of a full-time teacher's hours. 75.27 Subd. 6. [REVENUE TIMING.] Districts or sites with 75.28 approved applications must receive professional compensation 75.29 revenue for each school year that the district or site 75.30 participates in the initiative and is in compliance with the 75.31 conditions for participation. 75.32 Subd. 7. [BASIC REVENUE.] A school district that qualifies 75.33 for participation in the professional compensation initiative 75.34 under subdivision 2, paragraph (b), may use the two percent of 75.35 basic revenue that would otherwise be reserved under section 75.36 122A.61 for compliance with the professional compensation 76.1 agreement under this section. If fewer than all of the licensed 76.2 teachers in the district participate in the initiative, the 76.3 amount of the two percent that may be used for the initiative 76.4 equals the two percent multiplied by the percentage of licensed 76.5 teachers participating in the initiative. 76.6 Subd. 8. [PARTICIPATION.] If a district and bargaining 76.7 unit do not participate in the professional compensation 76.8 initiatives in fiscal year 2006, they may elect to participate 76.9 in subsequent years. The requirements for participation in the 76.10 first year are the requirements described for fiscal year 2006. 76.11 [EFFECTIVE DATE.] This section is effective for fiscal year 76.12 2006 and thereafter. 76.13 Sec. 35. [122A.4143] [CLOSED CONTRACT.] 76.14 A district and the exclusive representative of the teachers 76.15 may agree jointly to reopen a collective bargaining agreement 76.16 for the sole purpose of entering into a professional 76.17 compensation system consistent with section 122A.4142 and an 76.18 educational improvement plan under section 122A.413. 76.19 [EFFECTIVE DATE.] This section is effective for fiscal year 76.20 2006 and later. 76.21 Sec. 36. [122A.4144] [PROFESSIONAL COMPENSATION PILOT SITE 76.22 AID.] 76.23 Subdivision 1. [AID AMOUNT.] (a) A school district that 76.24 received revenue under Minnesota Statutes 2004, section 76.25 122A.415, or meets the eligibility conditions of section 76.26 122A.4142, subdivision 1, paragraph (b), and submits an 76.27 application approved by the commissioner is eligible for 76.28 professional compensation pilot site aid. The commissioner must 76.29 consider only applications submitted jointly by a school 76.30 district and the exclusive representative of the teachers for 76.31 participation in the program. The application must contain a 76.32 formally adopted collective bargaining agreement, memorandum of 76.33 understanding, or other binding agreement that implements a 76.34 professional compensation pay system consistent with the 76.35 eligibility conditions of section 122A.4142, subdivision 2, 76.36 paragraph (b), and includes all teachers in a district, all 77.1 teachers at a school site, or at least 25 percent of the 77.2 teachers in a district. The commissioner, in approving 77.3 applications, may give preference to applications involving 77.4 entire districts or sites or to applications that align measures 77.5 of teacher performance with student academic achievement and 77.6 progress under section 122A.4142. 77.7 (b) Professional compensation aid for a qualifying school 77.8 district, site, or portion of a district or school site is as 77.9 follows: 77.10 (1) for a school district in which the school board and the 77.11 exclusive representative of the teachers agree to place all 77.12 teachers in the district or at the site on the alternative 77.13 compensation schedule, alternative compensation aid equals $150 77.14 times the district's or the site's number of pupils enrolled on 77.15 October 1 of the previous fiscal year; or 77.16 (2) for a district in which the school board and the 77.17 exclusive representative of the teachers agree that at least 25 77.18 percent of the district's licensed teachers will be paid on the 77.19 alternative compensation schedule, alternative compensation aid 77.20 equals $150 times the percentage of participating teachers times 77.21 the district's number of pupils enrolled as of October 1 of the 77.22 previous fiscal year. 77.23 Subd. 2. [PERCENTAGE OF TEACHERS.] For purposes of this 77.24 section, the percentage of teachers participating in the teacher 77.25 professional pay system equals the ratio of the number of 77.26 licensed teachers who are working at least 60 percent of a 77.27 full-time teacher's hours and agree to participate in the 77.28 teacher professional pay system to the total number of licensed 77.29 teachers who are working at least 60 percent of a full-time 77.30 teacher's hours. 77.31 Subd. 3. [AID TIMING.] (a) Districts or sites with 77.32 approved applications must receive alternative compensation aid 77.33 for each school year that the district or site participates in 77.34 the program as described in this subdivision. Districts or 77.35 sites with applications received by the commissioner before June 77.36 1 of the first year of a two-year contract shall receive 78.1 alternative compensation aid for both years of the contract. 78.2 Districts or sites with applications received by the 78.3 commissioner after June 1 of the first year of a two-year 78.4 contract shall receive alternative compensation aid only for the 78.5 second year of the contract. A qualifying district or site that 78.6 received alternative compensation aid for the previous fiscal 78.7 year must receive at least an amount equal to the lesser of the 78.8 amount it received for the previous fiscal year or its 78.9 proportionate share of the previous year's appropriation if the 78.10 district or site submits a timely application and the 78.11 commissioner determines that the district or site continues to 78.12 implement an alternative teacher professional pay system, 78.13 consistent with its application under this section. The 78.14 commissioner must approve initial applications for school 78.15 districts qualifying under subdivision 1, paragraph (b), clause 78.16 (1), by January 15 of each year. If any money remains, the 78.17 commissioner must approve aid amounts for school districts 78.18 qualifying under subdivision 1, paragraph (b), clause (2), by 78.19 February 15 of each year. 78.20 (b) The commissioner shall select applicants that qualify 78.21 for this program, notify school districts and school sites about 78.22 the program, develop and disseminate application materials, and 78.23 carry out other activities needed to implement this section. 78.24 [EFFECTIVE DATE.] This section is effective for revenue for 78.25 fiscal year 2006 and later. 78.26 Sec. 37. Minnesota Statutes 2004, section 122A.60, 78.27 subdivision 1, is amended to read: 78.28 Subdivision 1. [STAFF DEVELOPMENT COMMITTEE.] A school 78.29 board must use the revenue authorized in section 122A.61 for 78.30 in-service education for programs under section 120B.22, 78.31 subdivision 2, or for staff development plans under this 78.32 section. The board must establish an advisory staff development 78.33 committee to develop the plan, assist site professional 78.34 development teams in developing a site plan consistent with the 78.35 goals of the plan, and evaluate staff development efforts at the 78.36 site level. A majority of the advisory committee and the site 79.1 professional development team must be teachers representing 79.2 various grade levels, subject areas, and special education. The 79.3 advisory committee must also include nonteaching staff, parents, 79.4 and administrators.Districts must report staff development79.5results and expenditures to the commissioner in the form and79.6manner determined by the commissioner. The expenditure report79.7must include expenditures by the board for district level79.8activities and expenditures made by the staff. The report must79.9provide a breakdown of expenditures for (1) curriculum79.10development and programs, (2) in-service education, workshops,79.11and conferences, and (3) the cost of teachers or substitute79.12teachers for staff development purposes. Within each of these79.13categories, the report must also indicate whether the79.14expenditures were incurred at the district level or the school79.15site level, and whether the school site expenditures were made79.16possible by the grants to school sites that demonstrate79.17exemplary use of allocated staff development revenue. These79.18expenditures are to be reported using the UFARS system. The79.19commissioner shall report the staff development expenditure data79.20to the education committees of the legislature by February 1579.21each year.79.22 Sec. 38. Minnesota Statutes 2004, section 122A.60, is 79.23 amended by adding a subdivision to read: 79.24 Subd. 1a. [EFFECTIVE STAFF DEVELOPMENT ACTIVITIES.] Staff 79.25 development activities must: 79.26 (1) focus on the school classroom and research-based 79.27 strategies that improve student learning; 79.28 (2) provide opportunities for teachers to practice and 79.29 improve their skills over time; 79.30 (3) provide opportunities for teachers to use data to 79.31 increase student achievement as part of their daily work; 79.32 (4) enhance teacher content knowledge and instructional 79.33 skills; 79.34 (5) align with state and local academic standards; and 79.35 (6) provide opportunities to build professional 79.36 relationships, foster collaboration among principals and staff 80.1 who provide instruction, and provide opportunities for 80.2 teacher-to-teacher mentoring. 80.3 Staff development activities may include curriculum development 80.4 and curriculum training programs, and activities that provide 80.5 teachers and other members of site-based teams training to 80.6 enhance team performance. In addition, the school district may 80.7 implement other staff development activities as required by law 80.8 and those associated with professional teacher compensation 80.9 models. Release time provided for teachers to supervise 80.10 students on field trips and school activities, or independent 80.11 tasks not associated with enhancing the teacher's knowledge and 80.12 skills, such as preparing report cards, calculating grades, or 80.13 organizing classroom materials, may not be counted as staff 80.14 development time that is financed with staff development 80.15 reserved revenue under section 122A.61. 80.16 Sec. 39. Minnesota Statutes 2004, section 122A.60, is 80.17 amended by adding a subdivision to read: 80.18 Subd. 4. [STAFF DEVELOPMENT REPORT.] (a) By October 15 of 80.19 each year, the district and site staff development committees 80.20 shall write and submit a report of staff development activities 80.21 and expenditures for the previous year, in the form and manner 80.22 determined by the commissioner. The report must include 80.23 assessment and evaluation data indicating progress toward 80.24 district and site staff development goals based on teaching and 80.25 learning outcomes, including the percentage of teachers and 80.26 other staff involved in instruction participating in effective 80.27 staff development activities under subdivision 3. 80.28 (b) The report must provide a breakdown of expenditures for: 80.29 (1) curriculum development and curriculum training 80.30 programs; and 80.31 (2) staff development training models, workshops, and 80.32 conferences, and the cost of releasing teachers or providing 80.33 substitute teachers for staff development purposes. 80.34 The report must also include whether the expenditures were 80.35 incurred at the district level or the school site level, and 80.36 whether the school site expenditures were made possible by 81.1 grants to school sites that demonstrate exemplary use of 81.2 allocated staff development revenue. These expenditures must be 81.3 reported using the uniform financial and accounting and 81.4 reporting standards. 81.5 (c) The commissioner shall report the staff development 81.6 progress and expenditure data to the house of representatives 81.7 and senate committees having jurisdiction over education by 81.8 February 15 each year. 81.9 Sec. 40. Minnesota Statutes 2004, section 122A.61, 81.10 subdivision 1, is amended to read: 81.11 Subdivision 1. [STAFF DEVELOPMENT REVENUE.] A district is 81.12 required to reserve an amount equal to at least two percent of 81.13 the basic revenue under section 126C.10, subdivision 2, for 81.14 in-service education for programs under section 120B.22, 81.15 subdivision 2, for staff development plans, including plans for 81.16 challenging instructional activities and experiences under 81.17 section 122A.60, and for curriculum development and programs, 81.18 other in-service education, teachers' workshops, teacher 81.19 conferences, the cost of substitute teachers staff development 81.20 purposes, preservice and in-service education for special 81.21 education professionals and paraprofessionals, and other related 81.22 costs for staff development efforts.A district may annually81.23waive the requirement to reserve their basic revenue under this81.24section if a majority vote of the licensed teachers in the81.25district and a majority vote of the school board agree to a81.26resolution to waive the requirement.A district in statutory 81.27 operating debt is exempt from reserving basic revenue according 81.28 to this section. Districts may expend an additional amount of 81.29 unreserved revenue for staff development based on their needs. 81.30 With the exception of amounts reserved for staff development 81.31 from revenues allocated directly to school sites, the board must 81.32 initially allocate 50 percent of the reserved revenue to each 81.33 school site in the district on a per teacher basis, which must 81.34 be retained by the school site until used. The board may retain 81.35 25 percent to be used for district wide staff development 81.36 efforts. The remaining 25 percent of the revenue must be used 82.1 to make grants to school sites for best practices methods. A 82.2 grant may be used for any purpose authorized under section 82.3 120B.22, subdivision 2, 122A.60, or for the costs of curriculum 82.4 development and programs, other in-service education, teachers' 82.5 workshops, teacher conferences, substitute teachers for staff 82.6 development purposes, and other staff development efforts, and 82.7 determined by the site professional development team. The site 82.8 professional development team must demonstrate to the school 82.9 board the extent to which staff at the site have met the 82.10 outcomes of the program. The board may withhold a portion of 82.11 initial allocation of revenue if the staff development outcomes 82.12 are not being met. A school district that participates in the 82.13 professional compensation initiative may, but is not required 82.14 to, reserve revenue under this section, except to the extent the 82.15 school district agrees to reserve or use revenue as a condition 82.16 of participation in the initiative. 82.17 Sec. 41. [122A.74] [PRINCIPALS' LEADERSHIP INSTITUTE.] 82.18 Subdivision 1. [ESTABLISHMENT.] (a) The commissioner of 82.19 education may contract with the regents of the University of 82.20 Minnesota to establish a Principals' Leadership Institute to 82.21 provide professional development to school principals by: 82.22 (1) creating a network of leaders in the educational and 82.23 business communities to communicate current and future trends in 82.24 leadership techniques; 82.25 (2) helping to create a vision for the school that is 82.26 aligned with the community and district priorities; and 82.27 (3) developing strategies to retain highly qualified 82.28 teachers. 82.29 (b) The University of Minnesota must cooperate with 82.30 participating members of the business community to provide 82.31 funding and content for the institute. 82.32 (c) Participants must agree to attend the Principals' 82.33 Leadership Institute for four weeks during the academic summer. 82.34 (d) The Principals' Leadership Institute must incorporate 82.35 program elements offered by leadership programs at the 82.36 University of Minnesota and program elements used by the 83.1 participating members of the business community to enhance 83.2 leadership within their businesses. 83.3 Subd. 2. [METHOD OF SELECTION AND REQUIREMENTS.] (a) The 83.4 board of each school district in the state may select a 83.5 principal, upon the recommendation of the district's 83.6 superintendent and based on the principal's leadership 83.7 potential, to attend the institute. 83.8 (b) The school board shall forward its list of recommended 83.9 participants to the commissioner of education by February 1 each 83.10 year. In addition, a principal may submit an application 83.11 directly to the commissioner by February 1. The commissioner of 83.12 education shall notify the school board, the principal 83.13 candidates, and the University of Minnesota of the principals 83.14 selected to participate in the Principals' Leadership Institute 83.15 each year. 83.16 Sec. 42. Minnesota Statutes 2004, section 123B.02, is 83.17 amended by adding a subdivision to read: 83.18 Subd. 14a. [EMPLOYEE RECOGNITION.] A school board may 83.19 establish and operate an employee recognition program for 83.20 district employees, including teachers, and may expend funds as 83.21 necessary to achieve the objectives of the program. The 83.22 employee recognition program shall not include monetary awards. 83.23 Sec. 43. Minnesota Statutes 2004, section 123B.02, is 83.24 amended by adding a subdivision to read: 83.25 Subd. 22. [REWARDS.] A school board may offer a reward to 83.26 persons who provide accurate and reliable information that leads 83.27 to the apprehension and arrest of a person who has committed a 83.28 crime against school district property, students, employees or 83.29 volunteers, or school board members. 83.30 [EFFECTIVE DATE.] This section is effective the day 83.31 following final enactment. 83.32 Sec. 44. Minnesota Statutes 2004, section 123B.04, 83.33 subdivision 1, is amended to read: 83.34 Subdivision 1. [DEFINITION.] "Education site" means a 83.35 separate facility. A program within a facility or within a 83.36 district is an education site if the school board recognizes it 84.1 as a site. 84.2 Sec. 45. Minnesota Statutes 2004, section 123B.04, 84.3 subdivision 2, is amended to read: 84.4 Subd. 2. [AGREEMENT.] (a)Either the school board or the84.5school site decision-making team may request that the school84.6board enter into an agreement with a school site decision-making84.7team concerningUpon the request of 60 percent of the licensed 84.8 employees of a site or a school site decision-making team, the 84.9 school board shall enter into discussions to reach an agreement 84.10 concerning the governance, management, or control of the 84.11 school. A school site decision-making team may include the 84.12 school principal, teachers in the school or their designee, 84.13 other employees in the school, parents of pupils in the school, 84.14 representatives of pupils in the school, or other members in the 84.15 community. For purposes of formation of a new site, a school 84.16 site decision-making team may be a team of teachers that is 84.17 recognized by the board as a site. The school site 84.18 decision-making team shall include the school principal or other 84.19 person having general control and supervision of the school. 84.20 The site decision-making team must reflect the diversity of the 84.21 education site.No more thanAt least one-half of the members 84.22 shall be employees of the district, unless an employee is the 84.23 parent of a student enrolled in the school site, in which case 84.24 the employee may elect to serve as a parent member of the site 84.25 team. 84.26 (b) School site decision-making agreements must delegate 84.27 powers, duties, and broad management responsibilities to site 84.28 teams and involve staff members, students as appropriate, and 84.29 parents in decision making. 84.30 (c) An agreement shall include a statement of powers, 84.31 duties, responsibilities, and authority to be delegated to and 84.32 within the site. 84.33 (d) An agreement may include: 84.34 (1) an achievement contract according to subdivision 4; 84.35 (2) a mechanism to allow principals, a site leadership 84.36 team, or other persons having general control and supervision of 85.1 the school, to make decisions regarding how financial and 85.2 personnel resources are best allocated at the site and from whom 85.3 goods or services are purchased; 85.4 (3) a mechanism to implement parental involvement programs 85.5 under section 124D.895 and to provide for effective parental 85.6 communication and feedback on this involvement at the site 85.7 level; 85.8 (4) a provision that would allow the team to determine who 85.9 is hired into licensed and nonlicensed positions; 85.10 (5) a provision that would allow teachers to choose the 85.11 principal or other person having general control; 85.12 (6) an amount of revenue allocated to the site under 85.13 subdivision 3; and 85.14 (7) any other powers and duties determined appropriate by 85.15 the board. 85.16 The school board of the district remains the legal employer 85.17 under clauses (4) and (5). 85.18 (e) Any powers or duties not delegated to the school site 85.19 management team in the school site management agreement shall 85.20 remain with the school board. 85.21 (f) Approved agreements shall be filed with the 85.22 commissioner. If a school board denies a request or the school 85.23 site and school board fail to reach an agreement to enter into a 85.24 school site management agreement,itthe school board shall 85.25 provide a copy of the request and the reasons for its denial to 85.26 the commissioner. 85.27 Sec. 46. Minnesota Statutes 2004, section 123B.88, is 85.28 amended by adding a subdivision to read: 85.29 Subd. 3a. [PUPIL TRANSPORTATION SAFETY COMMITTEE.] (a) A 85.30 school board may establish a pupil transportation safety 85.31 committee. The chair of the pupil transportation safety 85.32 committee is the district's school transportation safety 85.33 director. The school board shall appoint the other members of 85.34 the pupil transportation safety committee. Membership may 85.35 include parents, school bus drivers, representatives of school 85.36 bus companies, local law enforcement officials, other school 86.1 district staff, and representatives from other units of local 86.2 government. 86.3 (b) The duties of the pupil transportation safety committee 86.4 include: (1) reviewing and recommending changes to the 86.5 district's pupil transportation safety policy required under 86.6 subdivision 1; and (2) developing a comprehensive plan for the 86.7 safe transportation of students who face hazardous 86.8 transportation conditions. The comprehensive hazardous 86.9 transportation plan shall consider safety factors including the 86.10 types of roads that students must cross, the speed of traffic on 86.11 those roads, the age of the students, and any other factors as 86.12 determined by the committee. 86.13 (c) The pupil transportation safety committee must hold at 86.14 least one public meeting before adopting its comprehensive plan 86.15 for transporting students who face hazardous transportation 86.16 conditions. 86.17 (d) Any recommended changes to the district's pupil 86.18 transportation safety policy and the comprehensive plan for 86.19 hazardous transportation must be submitted to the school board. 86.20 [EFFECTIVE DATE.] This section is effective the day 86.21 following final enactment. 86.22 Sec. 47. Minnesota Statutes 2004, section 124D.081, is 86.23 amended to read: 86.24 124D.081 [FIRST-GRADE PREPAREDNESSALL-DAY KINDERGARTEN 86.25 PROGRAM.] 86.26 Subdivision 1. [PURPOSE.] The purposes of thefirst-grade86.27preparednessall-day kindergarten program are to ensure that 86.28 every child has the opportunity before first grade to develop 86.29 the skills and abilities necessary to read and succeed in school 86.30 and to reduce the underlying causes that create a need for 86.31 compensatory revenue. 86.32 Subd. 2. [QUALIFYING DISTRICT.] A school district may 86.33 receivefirst-grade preparednessall-day kindergarten revenue 86.34 for qualifying school sites if, consistent with subdivision 5, 86.35 the school board approves a resolution requiring the district to 86.36 provide services to all children located in a qualifying school 87.1 site attendance area. 87.2 Subd. 3. [QUALIFYING SCHOOL SITE.] (a) The commissioner 87.3 shall rank all school sites with kindergarten programs that do 87.4 not exclusively serve students under sections 125A.03 to 87.5 125A.24, and 125A.65. The ranking must be from highest to 87.6 lowest based on the site's free and reduced lunch count as a 87.7 percent of the fall enrollment using the preceding October 1 87.8 enrollment data. Once a school site is calculated to be 87.9 eligible, it remains eligible for the duration of the pilot 87.10 program, unless the site's ranking falls below the state average87.11for elementary schools. For each school site, the percentage 87.12 used to calculate the ranking must be the greater of (1) the 87.13 percent of the fall kindergarten enrollment receiving free and 87.14 reduced lunch, or (2) the percent of the total fall enrollment 87.15 receiving free and reduced lunch. The list of ranked sites must 87.16 be separated into the following geographic areas: Minneapolis 87.17 district, St. Paul district, suburban Twin Cities districts in 87.18 the seven-county metropolitan area, and school districts in 87.19 greater Minnesota. 87.20 (b) The commissioner shall establish a process and 87.21 timelines to qualify school sites for the next school year. 87.22 School sites must be qualified in each geographic area from the 87.23 list of ranked sites until the estimated revenue available for 87.24 this program has been allocated. The total estimated revenue 87.25 must be distributed to qualified school sites in each geographic 87.26 area as follows: 25 percent for Minneapolis sites, 25 percent 87.27 for St. Paul sites, 25 percent for suburban Twin Cities sites, 87.28 and 25 percent for greater Minnesota. 87.29 Subd. 4. [PROGRAM.] A qualifying school site must develop 87.30 itsfirst-grade preparednessall-day kindergarten program in 87.31 collaboration with other providers of school readiness and child 87.32 development services. A school site must offer a full-day 87.33 kindergarten program to participating children who are five 87.34 years of age or older for the full school day every day, a 87.35 program for participating children who are four years old, or a 87.36 combination of both. The program may offer as an option to 88.1 families home visits and other practices as appropriate, and may 88.2 provide such services with the consent of the parent or 88.3 guardian. Program providers must ensure that the program 88.4 supplements existing school readiness and child development 88.5 programs and complements the services provided with compensatory 88.6 revenue. Where possible, individuals receiving assistance under 88.7 a family assistance plan can meet the work activity requirement 88.8 of the plan by participating ina first-grade preparednessan 88.9 all-day kindergarten program as a volunteer. 88.10 Subd. 5. [EXTENDED DAY REQUIREMENTS.] The board of a 88.11 qualifying school district must develop and approve a plan to 88.12 provide extended day services to serve as many children as 88.13 possible. To accept children whose families participate in 88.14 child care assistance programs under section 119B.03 or 119B.05, 88.15 and to meet the requirements of section 245A.03, subdivision 2, 88.16 the board must formally approve thefirst-grade preparedness88.17 all-day kindergarten program. All revenue received under 88.18 subdivision 6 must be allocated to the qualifying school sites 88.19 within the district. 88.20 Subd. 6. [PREPAREDNESSREVENUE.] (a) A qualifying school 88.21 district is eligible forfirst-grade preparednessall-day 88.22 kindergarten revenue equal to the basic formula allowance for 88.23 that year times the number of children five years of age or 88.24 older enrolled in a kindergarten program at the site on October 88.25 1 of the previous year times .53. 88.26 (b) This revenue must supplement and not replace 88.27 compensatory revenue that the district uses for the same or 88.28 similar purposes under chapters 120B, 123A, 123B, 124D, 126C, 88.29 and 127A. 88.30 (c) A pupil enrolled in thefirst grade preparedness88.31 all-day kindergarten program at a qualifying school site is 88.32 eligible for transportation under section 123B.88, subdivision 1. 88.33 (d)First grade preparednessAll-day kindergarten revenue 88.34 paid to a charter school for which a school district is 88.35 providing transportation according to section 124D.10, 88.36 subdivision 16, shall be decreased by an amount equal to the 89.1 product of the formula allowance according to section 126C.10, 89.2 subdivision 2, times .0485 times the pupil units calculated 89.3 according to paragraph (a). This amount shall be paid to the 89.4 school district for transportation costs. 89.5 Subd. 9. [RESERVE ACCOUNT.]First grade preparedness89.6 All-day kindergarten revenue must be placed in a reserve account 89.7 within the general fund and may only be used forfirst grade89.8preparednessall-day kindergarten programs at qualifying school 89.9 sites. 89.10 Sec. 48. Minnesota Statutes 2004, section 124D.09, 89.11 subdivision 12, is amended to read: 89.12 Subd. 12. [CREDITS.] A pupil may enroll in a course under 89.13 this section for either secondary credit or postsecondary 89.14 credit. At the time a pupil enrolls in a course, the pupil 89.15 shall designate whether the course is for secondary or 89.16 postsecondary credit. A pupil taking several courses may 89.17 designate some for secondary credit and some for postsecondary 89.18 credit. A pupil must not audit a course under this section. 89.19 A district shall grant academic credit to a pupil enrolled 89.20 in a course for secondary credit if the pupil successfully 89.21 completes the course. Seven quarter or four semester college 89.22 credits equal at least one full year of high school credit. 89.23 Fewer college credits may be prorated. A district must also 89.24 grant academic credit to a pupil enrolled in a course for 89.25 postsecondary credit if secondary credit is requested by a 89.26 pupil. If no comparable course is offered by the district, the 89.27 district must, as soon as possible, notify the commissioner, who 89.28 shall determine the number of credits that shall be granted to a 89.29 pupil who successfully completes a course. If a comparable 89.30 course is offered by the district, the school board shall grant 89.31 a comparable number of credits to the pupil. If there is a 89.32 dispute between the district and the pupil regarding the number 89.33 of credits granted for a particular course, the pupil may appeal 89.34 the board's decision to the commissioner. The commissioner's 89.35 decision regarding the number of credits shall be final. 89.36 The secondary credits granted to a pupil must be counted 90.1 toward the graduation requirements and subject area requirements 90.2 of the district. Evidence of successful completion of each 90.3 course and secondary credits granted must be included in the 90.4 pupil's secondary school record. A pupil shall provide the 90.5 school with a copy of the pupil's grade in each course taken for 90.6 secondary credit under this section. Upon the request of a 90.7 pupil, the pupil's secondary school record must also include 90.8 evidence of successful completion and credits granted for a 90.9 course taken for postsecondary credit. In either case, the 90.10 record must indicate that the credits were earned at a 90.11 postsecondary institution. 90.12 If a pupil enrolls in a postsecondary institution after 90.13 leaving secondary school, the postsecondary institution must 90.14 award postsecondary credit for any course successfully completed 90.15 for secondary credit at that institution. Other postsecondary 90.16 institutions may award, after a pupil leaves secondary school, 90.17 postsecondary credit for any courses successfully completed 90.18 under this section. An institution may not charge a pupil for 90.19 the award of credit. 90.20 The Board of Trustees of the Minnesota State Colleges and 90.21 Universities and the Board of Regents of the University of 90.22 Minnesota must, and private nonprofit and proprietary 90.23 postsecondary institutions, should award postsecondary credit 90.24 for any successfully completed courses in a program certified by 90.25 the National Alliance of Concurrent Enrollment Partnerships 90.26 offered according to an agreement under subdivision 10. 90.27 Sec. 49. Minnesota Statutes 2004, section 124D.11, 90.28 subdivision 6, is amended to read: 90.29 Subd. 6. [OTHER AID, GRANTS, REVENUE.] (a) A charter 90.30 school is eligible to receive other aids, grants, and revenue 90.31 according to chapters 120A to 129C, as though it were a district. 90.32 (b) Notwithstanding paragraph (a), a charter school may not 90.33 receive aid, a grant, or revenue if a levy is required to obtain 90.34 the money, or if the aid, grant, or revenue is a replacement of 90.35 levy revenue, except as otherwise provided in this section. 90.36 (c) Federal aid received by the state must be paid to the 91.1 school, if it qualifies for the aid as though it were a school 91.2 district. 91.3 (d) A charter school may receive money from any source for 91.4 capital facilities needs. In the year-end report to the 91.5 commissioner of education, the charter school shall report the 91.6 total amount of funds received from grants and other outside 91.7 sources. 91.8 Sec. 50. Minnesota Statutes 2004, section 124D.66, 91.9 subdivision 3, is amended to read: 91.10 Subd. 3. [ELIGIBLE SERVICES.] (a) Assurance of mastery 91.11 programs may provide direct instructional services to an 91.12 eligible pupil, or a group of eligible pupils, under the 91.13 following conditions in paragraphs (b) to (d). 91.14 (b) Instruction may be provided at one or more grade levels 91.15 from kindergarten to grade 8 and for students in grades 9 91.16 through 12 who were enrolled in grade 8 before the 2005-2006 91.17 school year and have failed the basic skills tests, or were 91.18 enrolled in grade 8 in the 2005-2006 school year and later and 91.19 who have failed the Minnesota Comprehensive Assessments 91.20 (MCA-IIs) in reading, mathematics, or writing as required for 91.21 high school graduation under section 120B.02. If an assessment 91.22 of pupils' needs within a district demonstrates that the 91.23 eligible pupils in grades kindergarten to grade 8 are being 91.24 appropriately served, a district may serve eligible pupils in 91.25 grades 9 to 12. 91.26 (c) Instruction must be provided under the supervision of 91.27 the eligible pupil's regular classroom teacher. Instruction may 91.28 be provided by the eligible pupil's classroom teacher, by 91.29 another teacher, by a team of teachers, or by an education 91.30 assistant or aide. A special education teacher may provide 91.31 instruction, but instruction that is provided under this section 91.32 is not eligible for aid under section 125A.76. 91.33 (d) The instruction that is provided must differ from the 91.34 initial instruction the pupil received in the regular classroom 91.35 setting. The instruction may differ by presenting different 91.36 curriculum than was initially presented in the regular classroom 92.1 or by presenting the same curriculum: 92.2 (1) at a different rate or in a different sequence than it 92.3 was initially presented; 92.4 (2) using different teaching methods or techniques than 92.5 were used initially; or 92.6 (3) using different instructional materials than were used 92.7 initially. 92.8 Sec. 51. Minnesota Statutes 2004, section 124D.74, 92.9 subdivision 1, is amended to read: 92.10 Subdivision 1. [PROGRAM DESCRIBED.] American Indian 92.11 education programs are programs in public elementary and 92.12 secondary schools, nonsectarian nonpublic, community, 92.13 tribal, charter, or alternative schools enrolling American 92.14 Indian children designed to: 92.15 (1) support postsecondary preparation for pupils; 92.16 (2) support the academic achievement of American Indian 92.17 students with identified focus to improve reading and mathematic 92.18 skills; 92.19 (3) make the curriculum more relevant to the needs, 92.20 interests, and cultural heritage of American Indian pupils; 92.21 (4) provide positive reinforcement of the self-image of 92.22 American Indian pupils; 92.23 (5) develop intercultural awareness among pupils, parents, 92.24 and staff; and 92.25 (6) supplement, not supplant, state and federal educational 92.26 and cocurricular programs. 92.27 Program components may include: development of support 92.28 components for students in the areas of academic achievement, 92.29 retention, and attendance; development of support components for 92.30 staff, including in-service training and technical assistance in 92.31 methods of teaching American Indian pupils; research projects, 92.32 including experimentation with and evaluation of methods of 92.33 relating to American Indian pupils; provision of personal and 92.34 vocational counseling to American Indian pupils; modification of 92.35 curriculum, instructional methods, and administrative procedures 92.36 to meet the needs of American Indian pupils; and supplemental 93.1 instruction in American Indian language, literature, history, 93.2 and culture. Districts offering programs may make contracts for 93.3 the provision of program components by establishing cooperative 93.4 liaisons with tribal programs and American Indian social service 93.5 agencies. These programs may also be provided as components of 93.6 early childhood and family education programs. 93.7 Sec. 52. Minnesota Statutes 2004, section 124D.81, 93.8 subdivision 1, is amended to read: 93.9 Subdivision 1. [GRANTS; PROCEDURES.] Each fiscal year the 93.10 commissioner of education must make grants to no fewer than six 93.11 American Indian education programs. At least three programs 93.12 must be in urban areas and at least three must be on or near 93.13 reservations. The board of a local district, a participating 93.14 school or a group of boards may develop a proposal for grants in 93.15 support of American Indian education programs. Proposals may 93.16 provide for contracts for the provision of program components by 93.17 nonsectarian nonpublic, community, tribal, charter, or 93.18 alternative schools. The commissioner shall prescribe the form 93.19 and manner of application for grants, and no grant shall be made 93.20 for a proposal not complying with the requirements of sections 93.21 124D.71 to 124D.82.The commissioner must submit all proposals93.22to the state Advisory Committee on American Indian Education93.23Programs for its recommendations concerning approval,93.24modification, or disapproval and the amounts of grants to93.25approved programs.93.26 Sec. 53. Minnesota Statutes 2004, section 124D.84, 93.27 subdivision 1, is amended to read: 93.28 Subdivision 1. [AWARDS.] The commissioner, with the advice93.29and counsel of the Minnesota Indian Education Committee,may 93.30 award scholarships to any Minnesota resident student who is of 93.31 one-fourth or more Indian ancestry, who has applied for other 93.32 existing state and federal scholarship and grant programs, and 93.33 who, in the opinion of the commissioner, has the capabilities to 93.34 benefit from further education. Scholarships must be for 93.35 accredited degree programs in accredited Minnesota colleges or 93.36 universities or for courses in accredited Minnesota business, 94.1 technical, or vocational schools. Scholarships may also be 94.2 given to students attending Minnesota colleges that are in 94.3 candidacy status for obtaining full accreditation, and are 94.4 eligible for and receiving federal financial aid programs. 94.5 Students are also eligible for scholarships when enrolled as 94.6 students in Minnesota higher education institutions that have 94.7 joint programs with other accredited higher education 94.8 institutions. Scholarships shall be used to defray the total 94.9 cost of education including tuition, incidental fees, books, 94.10 supplies, transportation, other related school costs and the 94.11 cost of board and room and shall be paid directly to the college 94.12 or school concerned where the student receives federal financial 94.13 aid. The total cost of education includes all tuition and fees 94.14 for each student enrolling in a public institution and the 94.15 portion of tuition and fees for each student enrolling in a 94.16 private institution that does not exceed the tuition and fees at 94.17 a comparable public institution. Each student shall be awarded 94.18 a scholarship based on the total cost of the student's education 94.19 and a federal standardized need analysis. Applicants are 94.20 encouraged to apply for all other sources of financial aid.The94.21amount and type of each scholarship shall be determined through94.22the advice and counsel of the Minnesota Indian education94.23committee.94.24 When an Indian student satisfactorily completes the work 94.25 required by a certain college or school in a school year the 94.26 student is eligible for additional scholarships, if additional 94.27 training is necessary to reach the student's educational and 94.28 vocational objective. Scholarships may not be given to any 94.29 Indian student for more than five years of studywithout special94.30recommendation of the Minnesota Indian Education Committee. 94.31 Sec. 54. [127A.095] [IMPLEMENTATION OF NO CHILD LEFT 94.32 BEHIND ACT.] 94.33 Subdivision 1. [CONTINUED IMPLEMENTATION.] The Department 94.34 of Education shall continue to implement the federal No Child 94.35 Left Behind Act, Public Law 107-110, without interruption. 94.36 Subd. 2. [NO CHILD LEFT BEHIND REVIEW.] (a) The 95.1 legislature states its intention to require the Department of 95.2 Education to conduct a comprehensive review of the consolidated 95.3 state plan submitted by the state to the federal Department of 95.4 Education on implementing the No Child Left Behind Act. The 95.5 Minnesota Department of Education shall review and seek waivers 95.6 under paragraph (b). If the Department of Education is unable 95.7 to obtain waivers under paragraph (b), it should make a 95.8 recommendation in its report under paragraph (b) about whether 95.9 the state should opt out of the No Child Left Behind Act. 95.10 (b) The commissioner shall report to the house of 95.11 representatives and senate committees having jurisdiction over 95.12 kindergarten through grade 12 education policy and finance by 95.13 April 1, 2006, whether the department has: 95.14 (1) received approval from the federal Department of 95.15 Education to allow the state to develop a plan using multiple 95.16 measures including value-added measurement of student 95.17 achievement in addition to relying on standardized test results 95.18 to evaluate school and student performance for the purpose of 95.19 determining adequate yearly progress; 95.20 (2) received approval from the federal Department of 95.21 Education to allow the state to average three years of data for 95.22 the purposes of identifying a school for improvement; 95.23 (3) developed a plan and model legislation to ensure that 95.24 if an adequate yearly progress determination was made in error, 95.25 that the error will not adversely affect the school's or school 95.26 district's sanction status in subsequent years. The department 95.27 must have a policy in place to correct errors to accountability 95.28 reports; 95.29 (4) reported the additional costs for state fiscal years 95.30 2006 to 2009 that the No Child Left Behind Act imposes on the 95.31 state, the state's school districts, and charter schools that 95.32 are in excess of costs associated with the Improving America's 95.33 Schools Act of 1994, Public Law 103-382; 95.34 (5) received approval from the federal Department of 95.35 Education to allow the state to use No Child Left Behind Act 95.36 money to provide supplemental education services only in the 96.1 academic subject area that causes a school to miss adequate 96.2 yearly progress; 96.3 (6) received approval from the federal Department of 96.4 Education to exclude from sanctions schools that have not made 96.5 adequate yearly progress solely due to a subgroup of students 96.6 with disabilities not testing at a proficient level; 96.7 (7) received approval from the federal Department of 96.8 Education to exclude from sanctions a school that is classified 96.9 as not having made adequate yearly progress solely due to 96.10 different subgroups testing below proficient levels for at least 96.11 two consecutive years; 96.12 (8) received approval from the federal Department of 96.13 Education to identify a school as not making adequate yearly 96.14 progress only after missing the adequate yearly progress targets 96.15 in the same subject and subgroup for two consecutive years; 96.16 (9) received approval from the federal Department of 96.17 Education to identify a district as in need of improvement only 96.18 after missing the adequate yearly progress target in the same 96.19 subject across multiple grade spans for two consecutive years; 96.20 (10) received approval from the federal Department of 96.21 Education to limit the score of a student within multiple 96.22 subgroups to the one subgroup that is the smallest subgroup in 96.23 which that student is a part of when calculating adequate yearly 96.24 progress; 96.25 (11) implemented a uniform financial reporting system for 96.26 school districts to report costs related to implementing No 96.27 Child Left Behind Act requirements, including the costs of 96.28 complying with sanctions; 96.29 (12) received approval from the federal Department of 96.30 Education to determine the percentage of the special education 96.31 students that would be best educated based on out-of-level 96.32 standards and tested accordingly based on an individual 96.33 education plan; and 96.34 (13) received approval from the federal Department of 96.35 Education to determine when to hold schools accountable for 96.36 including a student with limited English proficiency in adequate 97.1 yearly progress calculations. 97.2 Subd. 3. [DEPARTMENT OF FINANCE CERTIFICATION.] If the 97.3 commissioner of education has not received approval from the 97.4 federal Department of Education regarding the conditions in 97.5 subdivision 2, paragraph (b), the commissioner of finance shall 97.6 certify and report to the legislature beginning January 1, 2007, 97.7 and each year thereafter, the amount of federal revenue, if any, 97.8 that may be withheld by the federal government as a result of a 97.9 potential state decision to discontinue implementation of the No 97.10 Child Left Behind Act. The report shall also specify the 97.11 intended purpose of the federal revenue and the amount of 97.12 revenue that may be withheld from the state, each school 97.13 district, and each charter school in each fiscal year. 97.14 [EFFECTIVE DATE.] This section is effective the day 97.15 following final enactment. 97.16 Sec. 55. [129C.105] [BOARD MEETINGS BY TELEPHONE OR OTHER 97.17 ELECTRONIC MEANS.] 97.18 (a) Notwithstanding section 13D.01 and if complying with 97.19 section 13D.02 is impractical, the Board of the Perpich Center 97.20 for Arts Education may conduct a meeting of its members by 97.21 telephone or other electronic means when: 97.22 (1) all members of the board participating in the meeting, 97.23 wherever the members' physical locations, can hear one another 97.24 and all discussion and testimony; 97.25 (2) members of the public present at the regular meeting 97.26 location of the board can hear all discussion and testimony and 97.27 all votes of members of the board; 97.28 (3) at least one member of the board is physically present 97.29 at the regular meeting location; and 97.30 (4) all votes are conducted by roll call, so each member's 97.31 vote on each issue can be identified and recorded. 97.32 (b) Each member of the board participating in a meeting by 97.33 telephone or other electronic means is considered present at the 97.34 meeting for purposes of determining a quorum and participating 97.35 in all proceedings. 97.36 (c) If telephone or other electronic means is used to 98.1 conduct a meeting, the board, to the extent practical, shall 98.2 allow a person to monitor the meeting electronically from a 98.3 remote location. The board may require the person making such a 98.4 connection to pay for documented marginal costs that the board 98.5 incurs as a result of the additional connection. 98.6 (d) If telephone or other electronic means is used to 98.7 conduct a regular, special, or emergency meeting, the board 98.8 shall provide notice of the regular meeting location, of the 98.9 fact that some members may participate by telephone or other 98.10 electronic means, and of the provisions of paragraph (c). The 98.11 timing and method of providing notice is governed by section 98.12 13D.04. 98.13 [EFFECTIVE DATE.] This section is effective the day 98.14 following final enactment. 98.15 Sec. 56. Minnesota Statutes 2004, section 179A.03, 98.16 subdivision 14, is amended to read: 98.17 Subd. 14. [PUBLIC EMPLOYEE OR EMPLOYEE.] "Public employee" 98.18 or "employee" means any person appointed or employed by a public 98.19 employer except: 98.20 (a) elected public officials; 98.21 (b) election officers; 98.22 (c) commissioned or enlisted personnel of the Minnesota 98.23 National Guard; 98.24 (d) emergency employees who are employed for emergency work 98.25 caused by natural disaster; 98.26 (e) part-time employees whose service does not exceed the 98.27 lesser of 14 hours per week or 35 percent of the normal work 98.28 week in the employee's appropriate unit; 98.29 (f) employees whose positions are basically temporary or 98.30 seasonal in character and: (1) are not for more than 67 working 98.31 days in any calendar year; or (2) are not for more than 100 98.32 working days in any calendar year and the employees are under 98.33 the age of 22, are full-time students enrolled in a nonprofit or 98.34 public educational institution prior to being hired by the 98.35 employer, and have indicated, either in an application for 98.36 employment or by being enrolled at an educational institution 99.1 for the next academic year or term, an intention to continue as 99.2 students during or after their temporary employment; 99.3 (g) employees providing services for not more than two 99.4 consecutive quarters to the Board of Trustees of the Minnesota 99.5 State Colleges and Universities under the terms of a 99.6 professional or technical services contract as defined in 99.7 section 16C.08, subdivision 1; 99.8 (h) employees of charitable hospitals as defined by section 99.9 179.35, subdivision 3; 99.10 (i) full-time undergraduate students employed by the school 99.11 which they attend under a work-study program or in connection 99.12 with the receipt of financial aid, irrespective of number of 99.13 hours of service per week; 99.14 (j) an individual who is employed for less than 300 hours 99.15 in a fiscal year as an instructor in an adult vocational 99.16 education program; 99.17 (k) an individual hired by the Board of Trustees of the 99.18 Minnesota State Colleges and Universities to teach one course 99.19 for three or fewer credits for one semester in a year; 99.20 (l) with respect to court employees: 99.21 (1) personal secretaries to judges; 99.22 (2) law clerks; 99.23 (3) managerial employees; 99.24 (4) confidential employees; and 99.25 (5) supervisory employees. 99.26 The following individuals are public employees regardless 99.27 of the exclusions of clauses (e) and (f): 99.28 (i) an employee hired by a school district or the Board of 99.29 Trustees of the Minnesota State Colleges and Universities except 99.30 at the university established in section 136F.13 or for 99.31 community services or community education instruction offered on 99.32 a noncredit basis: (A) to replace an absent teacher or faculty 99.33 member who is a public employee, where the replacement employee 99.34 is employed more than 30 working days as a replacement for that 99.35 teacher or faculty member; or (B) to take a teaching position 99.36 created due to increased enrollment, curriculum expansion, 100.1 courses which are a part of the curriculum whether offered 100.2 annually or not, or other appropriate reasons;and100.3 (ii) an employee hired for a position under clause (f)(1) 100.4 if that same position has already been filled under clause 100.5 (f)(1) in the same calendar year and the cumulative number of 100.6 days worked in that same position by all employees exceeds 67 100.7 calendar days in that year. For the purpose of this paragraph, 100.8 "same position" includes a substantially equivalent position if 100.9 it is not the same position solely due to a change in the 100.10 classification or title of the position; and 100.11 (iii) an early childhood family education teacher employed 100.12 by a school district. 100.13 [EFFECTIVE DATE.] This section is effective July 1, 2005. 100.14 Sec. 57. Minnesota Statutes 2004, section 260C.201, 100.15 subdivision 1, is amended to read: 100.16 Subdivision 1. [DISPOSITIONS.] (a) If the court finds that 100.17 the child is in need of protection or services or neglected and 100.18 in foster care, it shall enter an order making any of the 100.19 following dispositions of the case: 100.20 (1) place the child under the protective supervision of the 100.21 responsible social services agency or child-placing agency in 100.22 the home of a parent of the child under conditions prescribed by 100.23 the court directed to the correction of the child's need for 100.24 protection or services: 100.25 (i) the court may order the child into the home of a parent 100.26 who does not otherwise have legal custody of the child, however, 100.27 an order under this section does not confer legal custody on 100.28 that parent; 100.29 (ii) if the court orders the child into the home of a 100.30 father who is not adjudicated, he must cooperate with paternity 100.31 establishment proceedings regarding the child in the appropriate 100.32 jurisdiction as one of the conditions prescribed by the court 100.33 for the child to continue in his home; 100.34 (iii) the court may order the child into the home of a 100.35 noncustodial parent with conditions and may also order both the 100.36 noncustodial and the custodial parent to comply with the 101.1 requirements of a case plan under subdivision 2; or 101.2 (2) transfer legal custody to one of the following: 101.3 (i) a child-placing agency; or 101.4 (ii) the responsible social services agency. In placing a 101.5 child whose custody has been transferred under this paragraph, 101.6 the agencies shall make an individualized determination of how 101.7 the placement is in the child's best interests using the 101.8 consideration for relatives and the best interest factors in 101.9 section 260C.212, subdivision 2, paragraph (b); or 101.10 (3) if the child has been adjudicated as a child in need of 101.11 protection or services because the child is in need of special 101.12 services or care to treat or ameliorate a physical or mental 101.13 disability, the court may order the child's parent, guardian, or 101.14 custodian to provide it. The court may order the child's health 101.15 plan company to provide mental health services to the child. 101.16 Section 62Q.535 applies to an order for mental health services 101.17 directed to the child's health plan company. If the health 101.18 plan, parent, guardian, or custodian fails or is unable to 101.19 provide this treatment or care, the court may order it 101.20 provided. Absent specific written findings by the court that 101.21 the child's disability is the result of abuse or neglect by the 101.22 child's parent or guardian, the court shall not transfer legal 101.23 custody of the child for the purpose of obtaining special 101.24 treatment or care solely because the parent is unable to provide 101.25 the treatment or care. If the court's order for mental health 101.26 treatment is based on a diagnosis made by a treatment 101.27 professional, the court may order that the diagnosing 101.28 professional not provide the treatment to the child if it finds 101.29 that such an order is in the child's best interests; or 101.30 (4) if the court believes that the child has sufficient 101.31 maturity and judgment and that it is in the best interests of 101.32 the child, the court may order a child 16 years old or older to 101.33 be allowed to live independently, either alone or with others as 101.34 approved by the court under supervision the court considers 101.35 appropriate, if the county board, after consultation with the 101.36 court, has specifically authorized this dispositional 102.1 alternative for a child. 102.2 (b) If the child was adjudicated in need of protection or 102.3 services because the child is a runaway or habitual truant, the 102.4 court may order any of the following dispositions in addition to 102.5 or as alternatives to the dispositions authorized under 102.6 paragraph (a): 102.7 (1) counsel the child or the child's parents, guardian, or 102.8 custodian; 102.9 (2) place the child under the supervision of a probation 102.10 officer or other suitable person in the child's own home under 102.11 conditions prescribed by the court, including reasonable rules 102.12 for the child's conduct and the conduct of the parents, 102.13 guardian, or custodian, designed for the physical, mental, and 102.14 moral well-being and behavior of the child; or with the consent 102.15 of the commissioner of corrections, place the child in a group 102.16 foster care facility which is under the commissioner's 102.17 management and supervision; 102.18 (3) subject to the court's supervision, transfer legal 102.19 custody of the child to one of the following: 102.20 (i) a reputable person of good moral character. No person 102.21 may receive custody of two or more unrelated children unless 102.22 licensed to operate a residential program under sections 245A.01 102.23 to 245A.16; or 102.24 (ii) a county probation officer for placement in a group 102.25 foster home established under the direction of the juvenile 102.26 court and licensed pursuant to section 241.021; 102.27 (4) require the child to pay a fine of up to $100. The 102.28 court shall order payment of the fine in a manner that will not 102.29 impose undue financial hardship upon the child; 102.30 (5) require the child to participate in a community service 102.31 project; 102.32 (6) order the child to undergo a chemical dependency 102.33 evaluation and, if warranted by the evaluation, order 102.34 participation by the child in a drug awareness program or an 102.35 inpatient or outpatient chemical dependency treatment program; 102.36 (7) if the court believes that it is in the best interests 103.1 of the childandor of public safety that the child's driver's 103.2 license or instruction permit be canceled, the court may order 103.3 the commissioner of public safety to cancel the child's license 103.4 or permit for any period up to the child's 18th birthday. If 103.5 the child does not have a driver's license or permit, the court 103.6 may order a denial of driving privileges for any period up to 103.7 the child's 18th birthday. The court shall forward an order 103.8 issued under this clause to the commissioner, who shall cancel 103.9 the license or permit or deny driving privileges without a 103.10 hearing for the period specified by the court. At any time 103.11 before the expiration of the period of cancellation or denial, 103.12 the court may, for good cause, order the commissioner of public 103.13 safety to allow the child to apply for a license or permit, and 103.14 the commissioner shall so authorize; 103.15 (8) order that the child's parent or legal guardian deliver 103.16 the child to school at the beginning of each school day for a 103.17 period of time specified by the court; or 103.18 (9) require the child to perform any other activities or 103.19 participate in any other treatment programs deemed appropriate 103.20 by the court. 103.21 To the extent practicable, the court shall enter a 103.22 disposition order the same day it makes a finding that a child 103.23 is in need of protection or services or neglected and in foster 103.24 care, but in no event more than 15 days after the finding unless 103.25 the court finds that the best interests of the child will be 103.26 served by granting a delay. If the child was under eight years 103.27 of age at the time the petition was filed, the disposition order 103.28 must be entered within ten days of the finding and the court may 103.29 not grant a delay unless good cause is shown and the court finds 103.30 the best interests of the child will be served by the delay. 103.31 (c) If a child who is 14 years of age or older is 103.32 adjudicated in need of protection or services because the child 103.33 is a habitual truant and truancy procedures involving the child 103.34 were previously dealt with by a school attendance review board 103.35 or county attorney mediation program under section 260A.06 or 103.36 260A.07, the court shall order a cancellation or denial of 104.1 driving privileges under paragraph (b), clause (7), for any 104.2 period up to the child's 18th birthday. 104.3 (d) In the case of a child adjudicated in need of 104.4 protection or services because the child has committed domestic 104.5 abuse and been ordered excluded from the child's parent's home, 104.6 the court shall dismiss jurisdiction if the court, at any time, 104.7 finds the parent is able or willing to provide an alternative 104.8 safe living arrangement for the child, as defined in Laws 1997, 104.9 chapter 239, article 10, section 2. 104.10 (e) When a parent has complied with a case plan ordered 104.11 under subdivision 6 and the child is in the care of the parent, 104.12 the court may order the responsible social services agency to 104.13 monitor the parent's continued ability to maintain the child 104.14 safely in the home under such terms and conditions as the court 104.15 determines appropriate under the circumstances. 104.16 Sec. 58. 2005 S.F. No. 1879, article 3, section 3, 104.17 subdivision 24, if enacted, is amended to read: 104.18 Subd. 24. [BEST PRACTICES SEMINARS.] For best practices 104.19 seminars and other professional development capacity building 104.20 activities that assure proficiency in teaching and 104.21 implementation of graduation rule standards: 104.22 $1,000,000 ..... 2006 104.23 $1,000,000 ..... 2007 104.24 $400,000 each year is for a grant to the Minnesota 104.25 Humanities Commission. 104.26 $150,000 each year is for a grant to the Minnesota 104.27 Historical Society. 104.28 $250,000 each year is for a grant to Special School 104.29 District No. 6, South St. Paul, for the IB program expansion to 104.30 the elementary and middle school years. 104.31 $200,000 each year is for a grant to A Chance to Grow/New 104.32 Visions for the Minnesota Learning Resource Center's 104.33 comprehensive training program for education professionals 104.34 charged with helping children acquire basic reading and 104.35 mathematic skills. 104.36 Sec. 59. 2005 S.F. No. 1879, article 3, section 3, 105.1 subdivision 25, if enacted, is amended to read: 105.2 Subd. 25. [ALTERNATIVE TEACHERPROFESSIONAL COMPENSATION 105.3 FOR TEACHERS.] Foralternative teacherprofessional compensation 105.4 for teachers aid established under Minnesota Statutes,sections105.5122A.413 to 122A.415section 122A.4142: 105.6 $3,700,0008,700,000 ..... 2006 105.7 $3,700,0008,700,000 ..... 2007 105.8 If the appropriations under this subdivision are 105.9 insufficient to fund all program participants, a participant may 105.10 receive less than the maximum per pupil amount available under 105.11 Minnesota Statutes, section122A.415122A.4142, subdivision1105.12 4. A qualifying district or site receivingalternative teacher105.13 professional compensation for teacher funding under this 105.14 subdivision may use the funding it receives to leverage 105.15 additional funds from a national program for enhancing teacher 105.16 professionalism. Grantees who received revenue in fiscal year 105.17 2005 under Minnesota Statutes 2004, sections 122A.413 to 105.18 122A.415 shall receive revenue in fiscal years 2006 and 2007 105.19 under Minnesota Statutes, section 122A.4142. 105.20 Sec. 60. 2005 S.F. No. 1879, article 3, section 3, 105.21 subdivision 26, if enacted, is amended to read: 105.22 Subd. 26. [YOUTHWORKSYOUTH WORKS PROGRAM.] For funding 105.23youthworksyouth works programs under Minnesota Statutes, 105.24 sections 124D.37 to 124D.45: 105.25 $ 900,000 ..... 2006 105.26 $ 900,000 ..... 2007 105.27 A grantee organization may provide health and child care 105.28 coverage to the dependents of each participant enrolled in a 105.29 full-time youth works program to the extent such coverage is not 105.30 otherwise available. 105.31 Sec. 61. 2005 S.F. No. 1879, article 3, section 3, 105.32 subdivision 27, if enacted, is amended to read: 105.33 Subd. 27. [STUDENT ORGANIZATIONS.] For student 105.34 organizations: 105.35$625,000$725,000 ..... 2006 105.36$625,000$725,000 ..... 2007 106.1 Sec. 62. 2005 S.F. No. 1879, article 3, section 3, 106.2 subdivision 29, if enacted, is amended to read: 106.3 Subd. 29. [COLLABORATIVE URBAN EDUCATOR.] For the 106.4 collaborative urban educator program: 106.5 $528,000550,000 ..... 2006 106.6 $528,000550,000 ..... 2007 106.7 Sec. 63. 2005 S.F. No. 1879, article 3, section 3, 106.8 subdivision 31, if enacted, is amended to read: 106.9 Subd. 31. [FIRST GRADE PREPAREDNESSALL-DAY KINDERGARTEN.] 106.10 Forfirst grade preparedness grantsall-day kindergarten under 106.11 Minnesota Statutes, section 124D.081: 106.12 $7,250,000 ..... 2006 106.13 $7,250,000 ..... 2007 106.14 Sec. 64. [COLLEGE PREPARATION STANDARDS.] 106.15 (a) The Higher Education Advisory Council must convene a 106.16 working group to develop standards describing the skills and 106.17 knowledge a high school graduate must have at entry into 106.18 postsecondary education in order to successfully graduate from 106.19 college. The standards must, to the extent possible, be 106.20 applicable for all postsecondary education but may describe 106.21 differences in the skills and knowledge necessary for success in 106.22 different higher education institutions and programs. The 106.23 standards need not be comprehensive but must, at a minimum, be 106.24 the essential skills and knowledge that will enable a student to 106.25 succeed in college. The Higher Education Services Office must 106.26 provide staff for the working group. 106.27 (b) The Higher Education Advisory Council must submit the 106.28 standards to the commissioner of education no later than January 106.29 15, 2006. No later than March 15, 2006, the commissioner of 106.30 education must report, to the chairs of the legislative 106.31 committees with jurisdiction over kindergarten through grade 12 106.32 education policy and finance and higher education policy and 106.33 finance, its recommendations regarding the changes, if any, that 106.34 must be made in Minnesota's academic standards in order to 106.35 ensure that Minnesota high school graduates meet the college 106.36 readiness standards established by the Higher Education Advisory 107.1 Council. 107.2 (c) The Higher Education Advisory Council must invite the 107.3 University of Minnesota, Minnesota State Colleges and 107.4 Universities, representatives of private colleges, and other 107.5 private postsecondary institutions, to participate in the 107.6 working group and may invite other individuals or entities to 107.7 participate. The Higher Education Advisory Council and its 107.8 working group may collaborate with the Minnesota P-16 Education 107.9 Partnership in developing the college readiness standards. 107.10 Sec. 65. [MINNESOTA COMPREHENSIVE ASSESSMENTS; RULES.] 107.11 The commissioner of education shall adopt rules on or 107.12 before January 1, 2005, to implement the Minnesota Comprehensive 107.13 Assessments Second Edition (MCA-IIs) in reading, mathematics, 107.14 and writing. For purposes of state and local high school 107.15 graduation requirements, the rules must include criteria 107.16 enabling school districts to: 107.17 (1) appropriately accommodate a student who fails but seeks 107.18 to pass the Minnesota Comprehensive Assessments Second Edition; 107.19 and 107.20 (2) exempt a disabled student, consistent with the 107.21 student's individualized education plan, or an English language 107.22 learner from the Minnesota Comprehensive Assessments Second 107.23 Edition or administer an alternative assessment either to a 107.24 disabled student, consistent with the student's individualized 107.25 education plan, or to an English language learner. 107.26 Sec. 66. [ADAPTIVE COMPUTER-BASED ASSESSMENT.] 107.27 The commissioner of education shall include the cost of 107.28 developing an adaptive computer-based assessment within the 107.29 budget for statewide testing, including the Minnesota 107.30 comprehensive assessments and value-added testing. If an 107.31 additional appropriation is necessary to develop the 107.32 computer-based assessment, the commissioner shall request that 107.33 the legislature include the required appropriation in a 107.34 subsequent budget. 107.35 Sec. 67. [HEALTH AND PHYSICAL EDUCATION MODEL BENCHMARKS.] 107.36 By July 1, 2006, the commissioner of education must 108.1 transmit to school districts model kindergarten through grade 12 108.2 health and physical education benchmarks developed by the 108.3 department's health and physical education quality teaching 108.4 network. 108.5 Sec. 68. [RULES FOR SUPPLEMENTAL SERVICE PROVIDERS.] 108.6 The commissioner of education must amend Minnesota Rules, 108.7 part 3512.5400, relating to supplemental service providers to 108.8 include outcome standards. The commissioner must include in the 108.9 amended rules criteria to remove an education service provider 108.10 from the listing of approved service providers if they fail to 108.11 meet the outcome standards. 108.12 Sec. 69. [MODEL POLICY; INTIMIDATION AND BULLYING.] 108.13 The commissioner of education shall work with the Minnesota 108.14 School Boards Association to develop a model policy that 108.15 prohibits intimidating and bullying as required in Minnesota 108.16 Statutes, section 121A.0695, subdivision 2. 108.17 Sec. 70. [SCHOOL FINANCE STUDY.] 108.18 (a) The commissioner of education must contract with an 108.19 independent contractor that has extensive experience working 108.20 with various states on education finance systems to continue and 108.21 complete the work done by the governor's education funding task 108.22 force included in the June 2004 report, Investing in Our 108.23 Future. The commissioner must contract with a firm other than 108.24 the consulting firm performing services for and submitting a 108.25 report on behalf of the governor's education funding task force. 108.26 (b) The contractor must: 108.27 (1) conduct an in-depth analysis of the governor's 108.28 education funding task force report, Investing in Our Future, 108.29 dated June 2004, focusing on the data produced by the 108.30 professional judgment panel study included in the report; 108.31 (2) convene a meeting in Minnesota to help gather any 108.32 necessary additional data that is not contained in the 108.33 governor's task force report or to further validate some of the 108.34 report's existing data; 108.35 (3) determine the dollar value of an instructional services 108.36 allocation, including cost estimates for each school district 109.1 adjusting the allocation for individual student and school 109.2 district characteristics; and 109.3 (4) conduct outreach and support to explain its findings to 109.4 appropriate officials in Minnesota. 109.5 (c) In addition to the requirements in paragraph (b), the 109.6 contractor must analyze data from Minnesota school districts 109.7 that have proven to be successful in educating students to meet 109.8 the state's academic standards. The contractor must use a 109.9 statistical analysis to help explain differences in spending 109.10 across school districts while controlling for student 109.11 performance. 109.12 (d) The commissioner must report on the findings on the 109.13 contract to the legislative committees having jurisdiction over 109.14 kindergarten through grade 12 finance before December 15, 2005. 109.15 [EFFECTIVE DATE.] This section is effective the day 109.16 following final enactment. 109.17 Sec. 71. [EVALUATING THE EDUCATIONAL IMPACT OF FEDERAL AND 109.18 STATE TESTS ON KINDERGARTEN THROUGH GRADE 12 STUDENTS.] 109.19 (a) The Office of Educational Accountability under 109.20 Minnesota Statutes, section 120B.31, subdivision 3, must 109.21 evaluate the educational impact of the federal No Child Left 109.22 Behind Act and other state and federal laws requiring school 109.23 districts to administer tests to kindergarten through grade 12 109.24 students. The evaluation at least must include: 109.25 (1) potential educational costs to kindergarten through 109.26 grade 12 public school students through the 2013-2014 school 109.27 year of complying with testing requirements; 109.28 (2) educational factors that may increase or decrease the 109.29 educational costs identified under clause (1); 109.30 (3) the impact of testing requirements on the statewide 109.31 accountability system, teacher training and employment, and 109.32 curriculum development; and 109.33 (4) the relationship between the testing requirements, 109.34 postsecondary entrance requirements, and the expectations of the 109.35 business community regarding the educational preparation of new 109.36 high school graduates seeking employment. 110.1 The Office of Educational Accountability, at its 110.2 discretion, may include additional areas for evaluation. 110.3 (b) In preparing this evaluation, the Office of Educational 110.4 Accountability must select a sample of school districts to 110.5 explore in depth the areas listed in paragraph (a). The school 110.6 districts must be of varying sizes and geographical locations, 110.7 and must include some districts with schools designated by the 110.8 state Department of Education as "needing improvement" under the 110.9 No Child Left Behind Act. The Office of Educational 110.10 Accountability must contact school officials, employees of 110.11 postsecondary institutions, and representatives of business 110.12 communities from throughout the state to collect information and 110.13 perceptions related to the evaluation. State and local entities 110.14 must cooperate with and assist the Office of Educational 110.15 Accountability with this evaluation at the request of the Office 110.16 of Educational Accountability. 110.17 (c) The Office of Educational Accountability must submit 110.18 the evaluation in writing to the chairs of the house of 110.19 representatives and senate committees having jurisdiction over 110.20 kindergarten through grade 12 education policy and finance by 110.21 February 15, 2006. 110.22 [EFFECTIVE DATE.] This section is effective the day 110.23 following final enactment. 110.24 Sec. 72. [LICENSED STUDENT SUPPORT SERVICES.] 110.25 Subdivision 1. [ACCESS TO SERVICES.] School districts and 110.26 the Department of Education shall work to provide for students' 110.27 educational achievement, to provide for student safety, and to 110.28 enhance student physical, emotional, and social well-being by 110.29 providing access to licensed student support services, such as 110.30 licensed school nurses, licensed school counselors, licensed 110.31 school social workers, licensed alcohol and drug abuse 110.32 counselors, and licensed school psychologists. 110.33 Subd. 2. [FUNDING.] School districts and the Department of 110.34 Education shall explore opportunities for obtaining additional 110.35 funds to improve students' access to needed licensed student 110.36 support services including, at least, medical assistance 111.1 reimbursements, local collaborative time study funds, federal 111.2 funds, public health funds, and specifically designated funds. 111.3 Subd. 3. [IMPROVING ACCESS.] School districts and the 111.4 Department of Education must consider nationally recommended 111.5 licensed staff-to-student ratios, work loads, and best practices 111.6 when working to improve student access to needed licensed 111.7 student support services. 111.8 Sec. 73. [BOARD OF TEACHING REPORT.] 111.9 By January 16, 2006, the Board of Teaching, in consultation 111.10 with the Department of Education and other education 111.11 stakeholders, must prepare and submit to the house of 111.12 representatives and senate committees having jurisdiction over 111.13 kindergarten through grade 12 education policy and finance 111.14 proposed licensure requirements for teachers of 111.15 interdisciplinary curriculum to facilitate learning in 111.16 state-approved innovative schools and programs. 111.17 Sec. 74. [PROFESSIONAL COMPENSATION FOR TEACHERS TASK 111.18 FORCE.] 111.19 The commissioner of education must convene a task force on 111.20 professional compensation models for teachers. The commissioner 111.21 shall report the task force findings to the legislative 111.22 committees having jurisdiction over kindergarten through grade 111.23 12 education funding and policy issues by December 16, 2006. 111.24 The task force must recommend a professional compensation model 111.25 designed to improve teacher performance and student 111.26 achievement. The task force must recommend a method to 111.27 transition from the current pilot alternative compensation sites 111.28 to a statewide program, including recommendations for funding a 111.29 statewide program. 111.30 Sec. 75. [APPROPRIATIONS.] 111.31 Subdivision 1. [DEPARTMENT OF EDUCATION.] The sums 111.32 indicated in this section are appropriated from the general fund 111.33 to the Department of Education for the fiscal years designated. 111.34 Subd. 2. [IMPROVED SCHOOL FINANCE SYSTEM CONTRACT.] For a 111.35 contract to follow up on the work of the governor's education 111.36 funding task force: 112.1 $ 175,000 ..... 2006 112.2 Subd. 3. [STAFF DEVELOPMENT STATE MATCH.] For the state 112.3 match for staff development under Minnesota Statutes, section 112.4 122A.61: 112.5 $45,939,000 ..... 2006 112.6 $47,883,000 ..... 2007 112.7 Special School District No. 6, South St. Paul, may use its 112.8 state match to implement its elementary and middle school 112.9 international baccalaureate program expansion. 112.10 Subd. 4. [PROFESSIONAL COMPENSATION FOR TEACHERS TASK 112.11 FORCE.] For the professional compensation for teachers task 112.12 force: 112.13 $ 200,000 ..... 2006 112.14 $ 200,000 ..... 2007 112.15 Sec. 76. [REPEALER.] 112.16 Minnesota Statutes 2004, sections 121A.23; 122A.414; and 112.17 122A.415, are repealed. 112.18 ARTICLE 3 112.19 SPECIAL PROGRAMS 112.20 Section 1. Minnesota Statutes 2004, section 121A.66, 112.21 subdivision 5, is amended to read: 112.22 Subd. 5. [EMERGENCY.] "Emergency" means a situation in 112.23 which immediate intervention is necessary to protect a pupil or 112.24 other individual from physical injury or to prevent serious 112.25 property damage. 112.26 Sec. 2. Minnesota Statutes 2004, section 121A.66, is 112.27 amended by adding a subdivision to read: 112.28 Subd. 6. [POSITIVE BEHAVIORAL INTERVENTIONS AND 112.29 SUPPORTS.] "Positive behavioral interventions and supports" 112.30 means those strategies used to improve the school environment 112.31 and teach pupils skills likely to increase pupil ability to 112.32 exhibit appropriate behaviors. 112.33 Sec. 3. Minnesota Statutes 2004, section 121A.66, is 112.34 amended by adding a subdivision to read: 112.35 Subd. 7. [TIME-OUT.] "Time-out" means: 112.36 (1) a contingent observation, which is not a regulated 113.1 intervention, and involves instructing the pupil to leave the 113.2 school activity during the school day and not participate for a 113.3 period of time, but to observe the activity and listen to the 113.4 discussion from a time-out area within the same setting; 113.5 (2) an exclusionary time-out, which is not a regulated 113.6 intervention, and involves instructing the pupil to leave the 113.7 school activity during the school day and not participate in or 113.8 observe the classroom activity, but to go to another area from 113.9 which the pupil may leave; or 113.10 (3) a locked time-out, which is a regulated intervention, 113.11 and involves involuntarily removing the pupil from the school 113.12 activity during the school day and placing the pupil in a 113.13 specially designed and continuously supervised isolation room 113.14 that the pupil is prevented from leaving. 113.15 Sec. 4. Minnesota Statutes 2004, section 121A.67, is 113.16 amended to read: 113.17 121A.67 [AVERSIVE AND DEPRIVATION PROCEDURES.] 113.18 Subdivision 1. [RULES.] The commissioner, after 113.19 consultation with interested parent organizations and advocacy 113.20 groups, the Minnesota Administrators for Special Education, the 113.21 Minnesota Association of School Administrators, Education 113.22 Minnesota, the Minnesota School Boards Association, the 113.23 Minnesota Police Officers Association, a representative of a 113.24 bargaining unit that represents paraprofessionals, the 113.25 Elementary School Principals Association, and the Secondary 113.26 School Principals Association, mustadoptamend rules governing 113.27 the use of aversive and deprivation procedures by school 113.28 district employees or persons under contract with a school 113.29 district. The rules must: 113.30 (1) promote the use of positiveapproachesbehavioral 113.31 interventions and supports and must not encourage or require the 113.32 use of aversive or deprivation procedures; 113.33 (2) require that planned application of aversive and 113.34 deprivation procedures only bea part of aninstituted after 113.35 completing a functional behavior assessment and developing a 113.36 behavior intervention plan that is included in or maintained 114.1 with the individual education plan; 114.2 (3) requireparents or guardians to be notified after the114.3use ofeducational personnel to notify a parent or guardian of a 114.4 pupil with an individual education plan on the same day aversive 114.5 or deprivation procedures are used in an emergency or in writing 114.6 within two school days if district personnel are unable to 114.7 provide same-day notice; 114.8 (4) establish health and safety standards for the use of 114.9 locked time-out procedures that require a safe environment, 114.10 continuous monitoring of the child, ventilation,andadequate 114.11 space, a locking mechanism that disengages automatically when 114.12 not continuously engaged by school personnel, and full 114.13 compliance with state and local fire and building codes, 114.14 including state rules on time-out rooms;and114.15 (5) contain a list of prohibited procedures; 114.16 (6) consolidate and clarify provisions related to behavior 114.17 intervention plans; 114.18 (7) require school districts to register with the 114.19 commissioner any room used for locked time-out, which the 114.20 commissioner must monitor by making announced and unannounced 114.21 on-site visits; 114.22 (8) place a student in locked time-out only if the 114.23 intervention is: 114.24 (i) part of the comprehensive behavior intervention plan 114.25 that is included in or maintained with the student's individual 114.26 education plan, and the plan uses positive behavioral 114.27 interventions and supports, and data support its continued use; 114.28 or 114.29 (ii) used in an emergency for the duration of the emergency 114.30 only; and 114.31 (9) require a providing school district or cooperative to 114.32 establish an oversight committee composed of at least one member 114.33 with training in behavioral analysis and other appropriate 114.34 education personnel to annually review aggregate data regarding 114.35 the use of aversive and deprivation procedures. 114.36 Subd. 2. [REMOVAL BY PEACE OFFICER.] If a pupil who has an 115.1 individual education plan is restrained or removed from a 115.2 classroom, school building, or school grounds by a peace officer 115.3 at the request of a school administrator or a school staff 115.4 person during the school day twice in a 30-day period, the 115.5 pupil's individual education program team must meet to determine 115.6 if the pupil's individual education plan is adequate or if 115.7 additional evaluation is needed. 115.8 [EFFECTIVE DATE.] Subdivision 1 of this section is 115.9 effective the day following final enactment. 115.10 Sec. 5. Minnesota Statutes 2004, section 122A.15, is 115.11 amended by adding a subdivision to read: 115.12 Subd. 3. [STUDENT SUPPORT SERVICES ADVISORY COMMITTEE; 115.13 DISTRICT PLAN.] (a) A student support services advisory 115.14 committee composed of ten members selected by the commissioner 115.15 is established under section 15.059. The commissioner must 115.16 select one committee member from each of the following 115.17 organizations: 115.18 (1) the Minnesota Department of Education; 115.19 (2) the Minnesota School Boards Association; 115.20 (3) the Minnesota Association of School Administrators; 115.21 (4) the Minnesota School Social Work Association; 115.22 (5) the School Nurse Organization of Minnesota; 115.23 (6) the Minnesota School Psychologists Association; 115.24 (7) the Minnesota School Counselors Association; 115.25 (8) the Minnesota Association of Resources for Recovery and 115.26 Chemical Health; 115.27 (9) the Minnesota Administrators for Special Education; and 115.28 (10) the Minnesota Parent Teachers Association. 115.29 (b) The committee must: 115.30 (1) establish a method for identifying student needs that 115.31 are barriers to learning; 115.32 (2) identify alternatives for integrating student support 115.33 services into public schools; 115.34 (3) recommend support staff to student ratios and best 115.35 practices for providing student support services premised on 115.36 evidence-based practice; 116.1 (4) identify the substance and extent of the work that 116.2 student support services staff are trained and licensed to 116.3 provide and the characteristics of the student populations they 116.4 serve; 116.5 (5) recommend how school districts can most appropriately 116.6 integrate student support services into the education program; 116.7 and 116.8 (6) recommend public and nonpublic revenue sources that 116.9 school districts can use to fund student support services 116.10 including, among other sources, medical assistance 116.11 reimbursements, private health insurance, local collaborative 116.12 time study funds, federal funds, public health funds, and 116.13 specifically designated funds such as school safety levies and 116.14 district general funds, among other funds. 116.15 (c) The committee must consider the oral and written 116.16 testimony of school district personnel and parents and students 116.17 in complying with paragraph (b). The committee must submit 116.18 periodic recommendations about student support services to the 116.19 commissioner and to the committees of the legislature having 116.20 jurisdiction over birth to age 21 education policy and budget 116.21 issues. The commissioner must consider the committee's 116.22 recommendations in deciding whether to develop and maintain a 116.23 model district plan for student support services. If the 116.24 commissioner develops and maintains a model plan, the 116.25 commissioner also must decide whether to transmit the plan to 116.26 school districts, whether to require the districts to adopt and 116.27 maintain a district plan for providing student support services 116.28 that meets the criteria recommended by the advisory committee, 116.29 and whether to require the districts to submit the plan for 116.30 biennial review. 116.31 (d) Notwithstanding section 15.059, subdivision 5, the 116.32 committee expires on June 30, 2016. 116.33 [EFFECTIVE DATE.] This section is effective the day 116.34 following final enactment and applies to the 2006-2007 school 116.35 year and later. 116.36 Sec. 6. Minnesota Statutes 2004, section 123B.92, 117.1 subdivision 1, is amended to read: 117.2 Subdivision 1. [DEFINITIONS.] For purposes of this section 117.3 and section 125A.76, the terms defined in this subdivision have 117.4 the meanings given to them. 117.5 (a) "Actual expenditure per pupil transported in the 117.6 regular and excess transportation categories" means the quotient 117.7 obtained by dividing: 117.8 (1) the sum of: 117.9 (i) all expenditures for transportation in the regular 117.10 category, as defined in paragraph (b), clause (1), and the 117.11 excess category, as defined in paragraph (b), clause (2), plus 117.12 (ii) an amount equal to one year's depreciation on the 117.13 district's school bus fleet and mobile units computed on a 117.14 straight line basis at the rate of 15 percent per year for 117.15 districts operating a program under section 124D.128 for grades 117.16 1 to 12 for all students in the district and 12-1/2 percent per 117.17 year for other districts of the cost of the fleet, plus 117.18 (iii) an amount equal to one year's depreciation on the 117.19 district's type three school buses, as defined in section 117.20 169.01, subdivision 6, clause (5), which must be used a majority 117.21 of the time for pupil transportation purposes, computed on a 117.22 straight line basis at the rate of 20 percent per year of the 117.23 cost of the type three school buses by: 117.24 (2) the number of pupils eligible for transportation in the 117.25 regular category, as defined in paragraph (b), clause (1), and 117.26 the excess category, as defined in paragraph (b), clause (2). 117.27 (b) "Transportation category" means a category of 117.28 transportation service provided to pupils as follows: 117.29 (1) Regular transportation is: 117.30 (i) transportation to and from school during the regular 117.31 school year for resident elementary pupils residing one mile or 117.32 more from the public or nonpublic school they attend, and 117.33 resident secondary pupils residing two miles or more from the 117.34 public or nonpublic school they attend, excluding desegregation 117.35 transportation and noon kindergarten transportation; but with 117.36 respect to transportation of pupils to and from nonpublic 118.1 schools, only to the extent permitted by sections 123B.84 to 118.2 123B.87; 118.3 (ii) transportation of resident pupils to and from language 118.4 immersion programs; 118.5 (iii) transportation of a pupil who is a custodial parent 118.6 and that pupil's child between the pupil's home and the child 118.7 care provider and between the provider and the school, if the 118.8 home and provider are within the attendance area of the school; 118.9 (iv) transportation to and from or board and lodging in 118.10 another district, of resident pupils of a district without a 118.11 secondary school; and 118.12 (v) transportation to and from school during the regular 118.13 school year required under subdivision 3 for nonresident 118.14 elementary pupils when the distance from the attendance area 118.15 border to the public school is one mile or more, and for 118.16 nonresident secondary pupils when the distance from the 118.17 attendance area border to the public school is two miles or 118.18 more, excluding desegregation transportation and noon 118.19 kindergarten transportation. 118.20 For the purposes of this paragraph, a district may 118.21 designate a licensed day care facility, respite care facility, 118.22 the residence of a relative, or the residence of a person chosen 118.23 by the pupil's parent or guardian as the home of a pupil for 118.24 part or all of the day, if requested by the pupil's parent or 118.25 guardian, and if that facility or residence is within the 118.26 attendance area of the school the pupil attends. 118.27 (2) Excess transportation is: 118.28 (i) transportation to and from school during the regular 118.29 school year for resident secondary pupils residing at least one 118.30 mile but less than two miles from the public or nonpublic school 118.31 they attend, and transportation to and from school for resident 118.32 pupils residing less than one mile from school who are 118.33 transported because of extraordinary traffic, drug, or crime 118.34 hazards; and 118.35 (ii) transportation to and from school during the regular 118.36 school year required under subdivision 3 for nonresident 119.1 secondary pupils when the distance from the attendance area 119.2 border to the school is at least one mile but less than two 119.3 miles from the public school they attend, and for nonresident 119.4 pupils when the distance from the attendance area border to the 119.5 school is less than one mile from the school and who are 119.6 transported because of extraordinary traffic, drug, or crime 119.7 hazards. 119.8 (3) Desegregation transportation is transportation within 119.9 and outside of the district during the regular school year of 119.10 pupils to and from schools located outside their normal 119.11 attendance areas under a plan for desegregation mandated by the 119.12 commissioner or under court order. 119.13 (4) "Transportation services for pupils with disabilities" 119.14 is: 119.15 (i) transportation of pupils with disabilities who cannot 119.16 be transported on a regular school bus between home or a respite 119.17 care facility and school; 119.18 (ii) necessary transportation of pupils with disabilities 119.19 from home or from school to other buildings, including centers 119.20 such as developmental achievement centers, hospitals, and 119.21 treatment centers where special instruction or services required 119.22 by sections 125A.03 to 125A.24, 125A.26 to 125A.48, and 125A.65 119.23 are provided, within or outside the district where services are 119.24 provided; 119.25 (iii) necessary transportation for resident pupils with 119.26 disabilities required by sections 125A.12, and 125A.26 to 119.27 125A.48; 119.28 (iv) board and lodging for pupils with disabilities in a 119.29 district maintaining special classes; 119.30 (v) transportation from one educational facility to another 119.31 within the district for resident pupils enrolled on a 119.32 shared-time basis in educational programs, and necessary 119.33 transportation required by sections 125A.18, and 125A.26 to 119.34 125A.48, for resident pupils with disabilities who are provided 119.35 special instruction and services on a shared-time basis or if 119.36 resident pupils are not transported, the costs of necessary 120.1 travel between public and private schools or neutral 120.2 instructional sites by essential personnel employed by the 120.3 district's program for children with a disability; 120.4 (vi) transportation for resident pupils with disabilities 120.5 to and from board and lodging facilities when the pupil is 120.6 boarded and lodged for educational purposes; and 120.7 (vii) services described in clauses (i) to (vi), when 120.8 provided for pupils with disabilities in conjunction with a 120.9 summer instructional program that relates to the pupil's 120.10 individual education plan or in conjunction with a learning year 120.11 program established under section 124D.128. 120.12 For purposes of computing special education base revenue 120.13 under section 125A.76, subdivision 2, the cost of providing 120.14 transportation for children with disabilities includes (A) the 120.15 additional cost of transporting a homeless student from a 120.16 temporary nonshelter home in another district to the school of 120.17 origin, or a formerly homeless student from a permanent home in 120.18 another district to the school of origin but only through the 120.19 end of the academic year; and (B) depreciation on district-owned 120.20 school buses purchased after July 1, 2005, and used primarily 120.21 for transportation of pupils with disabilities, calculated 120.22 according to paragraph (a), clauses (ii) and (iii). 120.23 Depreciation costs included in the disabled transportation 120.24 category must be excluded in calculating the actual expenditure 120.25 per pupil transported in the regular and excess transportation 120.26 categories according to paragraph (a). 120.27 (5) "Nonpublic nonregular transportation" is: 120.28 (i) transportation from one educational facility to another 120.29 within the district for resident pupils enrolled on a 120.30 shared-time basis in educational programs, excluding 120.31 transportation for nonpublic pupils with disabilities under 120.32 clause (4); 120.33 (ii) transportation within district boundaries between a 120.34 nonpublic school and a public school or a neutral site for 120.35 nonpublic school pupils who are provided pupil support services 120.36 pursuant to section 123B.44; and 121.1 (iii) late transportation home from school or between 121.2 schools within a district for nonpublic school pupils involved 121.3 in after-school activities. 121.4 (c) "Mobile unit" means a vehicle or trailer designed to 121.5 provide facilities for educational programs and services, 121.6 including diagnostic testing, guidance and counseling services, 121.7 and health services. A mobile unit located off nonpublic school 121.8 premises is a neutral site as defined in section 123B.41, 121.9 subdivision 13. 121.10 Sec. 7. Minnesota Statutes 2004, section 124D.11, 121.11 subdivision 5, is amended to read: 121.12 Subd. 5. [SPECIAL EDUCATION AID.] (a) Except as provided 121.13 in subdivision 2, special education aid must be paid to a 121.14 charter school according to section 125A.76, as though it were a 121.15 school district. 121.16 (b) For fiscal year 2006, the charter school may charge 121.17 tuition to the district of residence as follows: 121.18 (1) if the charter school does not receive general 121.19 education revenue on behalf of the student according to 121.20 subdivision 1, tuition shall be charged as provided in section 121.21 125A.11.; or 121.22 (2) if the charter school receives general education 121.23 revenue on behalf of the student according to subdivision 1, 121.24 tuition shall be charged as provided in section 127A.47, 121.25 subdivision 7, paragraph (d). 121.26 (c) For fiscal year 2007 and later, the special education 121.27 aid paid to the charter school shall be adjusted as follows: 121.28 (1) if the charter school does not receive general 121.29 education revenue on behalf of the student according to 121.30 subdivision 1, the aid shall be adjusted as provided in section 121.31 125A.11; or 121.32 (2) if the charter school receives general education 121.33 revenue on behalf of the student according to subdivision 1, the 121.34 aid shall be adjusted as provided in section 127A.47, 121.35 subdivision 7, paragraph (d). 121.36 (d) Notwithstanding paragraphs (b) and (c), sections 122.1 125A.11 and 127A.47, subdivision 7, paragraph (d), for charter 122.2 schools where fewer than 30 percent of enrolled students receive 122.3 special education and related services, the tuition calculations 122.4 or aid adjustments must be based on the lesser of the charter 122.5 school's or the resident district's actual special education 122.6 cost per service hour for the student's primary disability area, 122.7 or grouping of disability areas used by the school for tuition 122.8 billing. For fiscal year 2006, the charter school may submit a 122.9 tuition bill in an amount equal to 70 percent of its remaining 122.10 unreimbursed special education costs to the commissioner. For 122.11 fiscal year 2007 and later, the commissioner must calculate the 122.12 remaining unreimbursed special education costs. The 122.13 commissioner must reimburse the charter school in an amount 122.14 equal to 70 percent of the school's remaining unreimbursed 122.15 special education costs from the charter school special 122.16 education reimbursement account according to section 125A.795. 122.17 Sec. 8. [124D.4531] [CAREER AND TECHNICAL LEVY.] 122.18 Subdivision 1. [CAREER AND TECHNICAL LEVY.] (a) A district 122.19 with a career and technical program approved under this section 122.20 for the fiscal year in which the levy is certified may levy an 122.21 amount equal to the lesser of: 122.22 (1) $80 times the district's average daily membership in 122.23 grades 10 through 12 for the fiscal year in which the levy is 122.24 certified; or 122.25 (2) 25 percent of approved expenditures in the fiscal year 122.26 in which the levy is certified for the following: 122.27 (i) salaries paid to essential, licensed personnel 122.28 providing direct instructional services to students in that 122.29 fiscal year for services rendered in the district's approved 122.30 career and technical education programs; 122.31 (ii) contracted services provided by a public or private 122.32 agency other than a Minnesota school district or cooperative 122.33 center under subdivision 7; 122.34 (iii) necessary travel between instructional sites by 122.35 licensed career and technical education personnel; 122.36 (iv) necessary travel by licensed career and technical 123.1 education personnel for vocational student organization 123.2 activities held within the state for instructional purposes; 123.3 (v) curriculum development activities that are part of a 123.4 five-year plan for improvement based on program assessment; 123.5 (vi) necessary travel by licensed career and technical 123.6 education personnel for noncollegiate credit-bearing 123.7 professional development; and 123.8 (vii) specialized vocational instructional supplies. 123.9 (b) Up to ten percent of a district's career and technical 123.10 levy may be spent on equipment purchases. Districts using the 123.11 career and technical levy for equipment purchases must report to 123.12 the department on the improved learning opportunities for 123.13 students that result from the investment in equipment. 123.14 (c) The district must recognize the full amount of this 123.15 levy as revenue for the fiscal year in which it is certified. 123.16 Subd. 2. [ALLOCATION FROM COOPERATIVE CENTERS AND 123.17 INTERMEDIATE DISTRICTS.] For purposes of this section, a 123.18 cooperative center or an intermediate district must allocate its 123.19 approved expenditures for career and technical education 123.20 programs among participating districts. 123.21 Subd. 3. [LEVY GUARANTEE.] Notwithstanding subdivision 1, 123.22 the career and technical education levy for a district is not 123.23 less than the lesser of: 123.24 (1) the district's career and technical education levy 123.25 authority for the previous fiscal year; or 123.26 (2) 100 percent of the approved expenditures for career and 123.27 technical programs included in subdivision 1, paragraph (b), for 123.28 the fiscal year in which the levy is certified. 123.29 Subd. 4. [DISTRICT REPORTS.] Each district or cooperative 123.30 center must report data to the department for all career and 123.31 technical education programs as required by the department to 123.32 implement the career and technical levy formula. 123.33 [EFFECTIVE DATE.] This section is effective for taxes 123.34 payable in 2009. 123.35 Sec. 9. Minnesota Statutes 2004, section 124D.59, 123.36 subdivision 2, is amended to read: 124.1 Subd. 2. [PUPIL OF LIMITED ENGLISH PROFICIENCY.] (a) 124.2 "Pupil of limited English proficiency" means a pupil in 124.3 kindergarten through grade 12 who meets the following 124.4 requirements: 124.5 (1) the pupil, as declared by a parent or guardian first 124.6 learned a language other than English, comes from a home where 124.7 the language usually spoken is other than English, or usually 124.8 speaks a language other than English; and 124.9 (2) the pupil is determined by developmentally appropriate 124.10 measures, which might include observations, teacher judgment, 124.11 parent recommendations, or developmentally appropriate 124.12 assessment instruments, to lack the necessary English skills to 124.13 participate fully in classes taught in English. 124.14 (b) Notwithstanding paragraph (a), a pupil in grades 4 124.15 through 12 who was enrolled in a Minnesota public school on the 124.16 dates during the previous school year when a commissioner 124.17 provided assessment that measures the pupil's emerging academic 124.18 English was administered, shall not be counted as a pupil of 124.19 limited English proficiency in calculating limited English 124.20 proficiency pupil units under section 126C.05, subdivision 17, 124.21 and shall not generate state limited English proficiency aid 124.22 under section 124D.65, subdivision 5, unless the pupil scored 124.23 below the state cutoff score on an assessment measuring emerging 124.24 academic English provided by the commissioner during the 124.25 previous school year. 124.26 (c) Notwithstanding paragraphs (a) and (b), a pupil in 124.27 kindergarten through grade 12 shall not be counted as a pupil of 124.28 limited English proficiency in calculating limited English 124.29 proficiency pupil units under section 126C.05, subdivision 17, 124.30 and shall not generate state limited English proficiency aid 124.31 under section 124D.65, subdivision 5, if: 124.32 (1) the pupil is not enrolled during the current fiscal 124.33 year in an educational program for pupils of limited English 124.34 proficiency in accordance with sections 124D.58 to 124D.64; or 124.35 (2) the pupil has generatedfiveseven or more years of 124.36 average daily membership in Minnesota public schools since July 125.1 1, 1996. 125.2 [EFFECTIVE DATE.] This section is effective for revenue for 125.3 fiscal years 2006 and 2007 if the basic formula allowance under 125.4 Minnesota Statutes, section 126C.10, subdivision 2, does not 125.5 grow by at least three and one-half percent each year, excluding 125.6 roll-ins. 125.7 Sec. 10. Minnesota Statutes 2004, section 125A.11, 125.8 subdivision 1, is amended to read: 125.9 Subdivision 1. [NONRESIDENT TUITION RATE; OTHER COSTS.] 125.10 (a) For fiscal year 2006, when a school district provides 125.11 instruction and services outside the district of residence, 125.12 board and lodging, and any tuition to be paid, shall be paid by 125.13 the district of residence, except as provided in subdivision 4. 125.14 The tuition rate to be charged for any child with a disability, 125.15 excluding a pupil for whom tuition is calculated according to 125.16 section 127A.47, subdivision 7, paragraph (d), must be the sum 125.17 of (1) the actual cost of providing special instruction and 125.18 services to the child including a proportionate amount 125.19 forcapital outlay and debt service but not including any amount125.20forspecial transportation and unreimbursed building lease and 125.21 debt service costs for facilities used primarily for special 125.22 education, plus (2) the amount of general education revenue and 125.23 referendum aid attributable to the pupil, minus (3) the amount 125.24 of special education aid for children with a disability received 125.25 on behalf of that child, minus (4) if the pupil receives special 125.26 instruction and services outside the regular classroom for more 125.27 than 60 percent of the school day, the amount of general 125.28 education revenue and referendum aid, excluding portions 125.29 attributable to district and school administration, district 125.30 support services, operations and maintenance, capital 125.31 expenditures, and pupil transportation, attributable to that 125.32 pupil for the portion of time the pupil receives instruction in 125.33 the regular classroom. If the boards involved do not agree upon 125.34 the tuition rate, either board may apply to the commissioner to 125.35 fix the rate. Notwithstanding chapter 14, the commissioner must 125.36 then set a date for a hearing or request a written statement 126.1 from each board, giving each board at least ten days' notice, 126.2 and after the hearing or review of the written statements the 126.3 commissioner must make an order fixing the tuition rate, which 126.4 is binding on both school districts. General education revenue 126.5 and referendum aid attributable to a pupil must be calculated 126.6 using the resident district's average general education and 126.7 referendum revenue per adjusted pupil unit. 126.8 (b) For fiscal year 2007 and later, when a school district 126.9 provides special instruction and services for a pupil with a 126.10 disability as defined in section 125A.02 outside the district of 126.11 residence, excluding a pupil for whom an adjustment to special 126.12 education aid is calculated according to section 127A.47, 126.13 subdivision 7, paragraph (e), special education aid paid to the 126.14 resident district must be reduced by an amount equal to (1) the 126.15 actual cost of providing special instruction and services to the 126.16 pupil, including a proportionate amount for special 126.17 transportation and unreimbursed building lease and debt service 126.18 costs for facilities used primarily for special education, plus 126.19 (2) the amount of general education revenue and referendum aid 126.20 attributable to that pupil, minus (3) the amount of special 126.21 education aid for children with a disability received on behalf 126.22 of that child, minus (4) if the pupil receives special 126.23 instruction and services outside the regular classroom for more 126.24 than 60 percent of the school day, the amount of general 126.25 education revenue and referendum aid, excluding portions 126.26 attributable to district and school administration, district 126.27 support services, operations and maintenance, capital 126.28 expenditures, and pupil transportation, attributable to that 126.29 pupil for the portion of time the pupil receives instruction in 126.30 the regular classroom. General education revenue and referendum 126.31 aid attributable to a pupil must be calculated using the 126.32 resident district's average general education revenue and 126.33 referendum aid per adjusted pupil unit. If the resident 126.34 district's special education aid is insufficient to make the 126.35 full adjustment, the remaining adjustment shall be made to other 126.36 state aid due to the district. 127.1 [EFFECTIVE DATE.] This section is effective July 1, 2005, 127.2 for revenue for fiscal year 2006. 127.3 Sec. 11. Minnesota Statutes 2004, section 125A.24, is 127.4 amended to read: 127.5 125A.24 [PARENT ADVISORY COUNCILS.] 127.6 In order to increase the involvement of parents of children 127.7 with disabilities in district policy making and decision making, 127.8 school districts must have a special education advisory council 127.9 that is incorporated into the district's special education 127.10 system plan. 127.11 (1) This advisory council may be established either for 127.12 individual districts or in cooperation with other districts who 127.13 are members of the same special education cooperative. 127.14 (2) A district may set up this council as a subgroup of an 127.15 existing board, council, or committee. 127.16 (3) At least half of the designated council members must be 127.17 parents of students with a disability. The council must include 127.18 at least one member who is a parent of a nonpublic school 127.19 student with a disability or an employee of a nonpublic school 127.20 if a nonpublic school is located in the district. Each local 127.21 council must meet no less than once each year. The number of 127.22 members, frequency of meetings, and operational procedures are 127.23 to be locally determined. 127.24 Sec. 12. Minnesota Statutes 2004, section 125A.28, is 127.25 amended to read: 127.26 125A.28 [STATE INTERAGENCY COORDINATING COUNCIL.] 127.27 An Interagency Coordinating Council of at least 17, but not 127.28 more than 25 members is established, in compliance with Public 127.29 Law 102-119, section 682. The members must be appointed by the 127.30 governor. Council members must elect the council chair. The 127.31 representative of the commissioner may not serve as the chair. 127.32 The council must be composed of at least five parents, including 127.33 persons of color, of children with disabilities under age 12, 127.34 including at least three parents of a child with a disability 127.35 under age seven, five representatives of public or private 127.36 providers of services for children with disabilities under age 128.1 five, including a special education director, county social 128.2 service director, local Head Start director, and a community 128.3 health services or public health nursing administrator, one 128.4 member of the senate, one member of the house of 128.5 representatives, one representative of teacher preparation 128.6 programs in early childhood-special education or other 128.7 preparation programs in early childhood intervention, at least 128.8 one representative of advocacy organizations for children with 128.9 disabilities under age five, one physician who cares for young 128.10 children with special health care needs, one representative each 128.11 from the commissioners of commerce, education, health, human 128.12 services, a representative from the state agency responsible for 128.13 child care, and a representative from Indian health services or 128.14 a tribal council. Section 15.059, subdivisions 2 to 5, apply to 128.15 the council. The council must meet at least quarterly. 128.16 The council must address methods of implementing the state 128.17 policy of developing and implementing comprehensive, 128.18 coordinated, multidisciplinary interagency programs of early 128.19 intervention services for children with disabilities and their 128.20 families. 128.21 The duties of the council include recommending policies to 128.22 ensure a comprehensive and coordinated system of all state and 128.23 local agency services for children under age five with 128.24 disabilities and their families. The policies must address how 128.25 to incorporate each agency's services into a unified state and 128.26 local system of multidisciplinary assessment practices, 128.27 individual intervention plans, comprehensive systems to find 128.28 children in need of services, methods to improve public 128.29 awareness, and assistance in determining the role of interagency 128.30 early intervention committees. 128.31By September 1On the date that Minnesota Part C Annual 128.32 Performance Report is submitted to the federal Office of Special 128.33 Education, the council must recommend to the governor and the 128.34 commissioners of education, health, human services, commerce, 128.35 and employment and economic development policies for a 128.36 comprehensive and coordinated system. 129.1 Notwithstanding any other law to the contrary, the State 129.2 Interagency Coordinating Council expires on June 30,20052009. 129.3 Sec. 13. Minnesota Statutes 2004, section 125A.51, is 129.4 amended to read: 129.5 125A.51 [PLACEMENT OF CHILDREN WITHOUT DISABILITIES; 129.6 EDUCATION AND TRANSPORTATION.] 129.7 The responsibility for providing instruction and 129.8 transportation for a pupil without a disability who has a 129.9 short-term or temporary physical or emotional illness or 129.10 disability, as determined by the standards of the commissioner, 129.11 and who is temporarily placed for care and treatment for that 129.12 illness or disability, must be determined as provided in this 129.13 section. 129.14 (a) The school district of residence of the pupil is the 129.15 district in which the pupil's parent or guardian resides. 129.16 (b) When parental rights have been terminated by court 129.17 order, the legal residence of a child placed in a residential or 129.18 foster facility for care and treatment is the district in which 129.19 the child resides. 129.20 (c) Before the placement of a pupil for care and treatment, 129.21 the district of residence must be notified and provided an 129.22 opportunity to participate in the placement decision. When an 129.23 immediate emergency placement is necessary and time does not 129.24 permit resident district participation in the placement 129.25 decision, the district in which the pupil is temporarily placed, 129.26 if different from the district of residence, must notify the 129.27 district of residence of the emergency placement within 15 days 129.28 of the placement. 129.29 (d) When a pupil without a disability is temporarily placed 129.30 for care and treatment in a day program and the pupil continues 129.31 to live within the district of residence during the care and 129.32 treatment, the district of residence must provide instruction 129.33 and necessary transportation to and from the treatment facility 129.34 for the pupil. Transportation shall only be provided by the 129.35 district during regular operating hours of the district. The 129.36 district may provide the instruction at a school within the 130.1 district of residence, at the pupil's residence, or in the case 130.2 of a placement outside of the resident district, in the district 130.3 in which the day treatment program is located by paying tuition 130.4 to that district. The district of placement may contract with a 130.5 facility to provide instruction by teachers licensed by the 130.6 state Board of Teaching. 130.7 (e) When a pupil without a disability is temporarily placed 130.8 in a residential program for care and treatment, the district in 130.9 which the pupil is placed must provide instruction for the pupil 130.10 and necessary transportation while the pupil is receiving 130.11 instruction, and in the case of a placement outside of the 130.12 district of residence, the nonresident district must bill the 130.13 district of residence for the actual cost of providing the 130.14 instruction for the regular school year and for summer school, 130.15 excluding transportation costs. 130.16 (f) Notwithstanding paragraph (e), if the pupil is homeless 130.17 and placed in a public or private homeless shelter, then the 130.18 district that enrolls the pupil under section 127A.47, 130.19 subdivision 2, shall provide the transportation, unless the 130.20 district that enrolls the pupil and the district in which the 130.21 pupil is temporarily placed agree that the district in which the 130.22 pupil is temporarily placed shall provide transportation. When 130.23 a pupil without a disability is temporarily placed in a 130.24 residential program outside the district of residence, the 130.25 administrator of the court placing the pupil must send timely 130.26 written notice of the placement to the district of residence. 130.27 The district of placement may contract with a residential 130.28 facility to provide instruction by teachers licensed by the 130.29 state Board of Teaching. For purposes of this section, the state 130.30 correctional facilities operated on a fee-for-service basis are 130.31 considered to be residential programs for care and treatment. 130.32(f)(g) The district of residence must include the pupil in 130.33 its residence count of pupil units and pay tuition as provided 130.34 in section 123A.488 to the district providing the instruction. 130.35 Transportation costs must be paid by the district providing the 130.36 transportation and the state must pay transportation aid to that 131.1 district. For purposes of computing state transportation aid, 131.2 pupils governed by this subdivision must be included in the 131.3 disabled transportation category if the pupils cannot be 131.4 transported on a regular school bus route without special 131.5 accommodations. 131.6 Sec. 14. Minnesota Statutes 2004, section 125A.76, 131.7 subdivision 1, is amended to read: 131.8 Subdivision 1. [DEFINITIONS.] For the purposes of this 131.9 section, the definitions in this subdivision apply. 131.10 (a) "Base year" for fiscal year 1998 and later fiscal years 131.11 means the second fiscal year preceding the fiscal year for which 131.12 aid will be paid. 131.13 (b) "Basic revenue" has the meaning given it in section 131.14 126C.10, subdivision 2. For the purposes of computing basic 131.15 revenue pursuant to this section, each child with a disability 131.16 shall be counted as prescribed in section 126C.05, subdivision 1. 131.17 (c) "Essential personnel" means teachers, cultural 131.18 liaisons, related services, and support services staff providing 131.19 direct services to students. Essential personnel may also 131.20 include special education paraprofessionals or clericals 131.21 providing support to teachers and students by preparing 131.22 paperwork and making arrangements related to special education 131.23 compliance requirements, including parent meetings and 131.24 individual education plans. 131.25 (d) "Average daily membership" has the meaning given it in 131.26 section 126C.05. 131.27 (e) "Program growth factor" means 1.046 for fiscal year 131.28 2003, and; 1.0 for fiscalyearyears 2004, 2005, and 2006; 131.29 1.042 for fiscal year 2007; and 1.046 for fiscal year 2008 and 131.30 later. 131.31 [EFFECTIVE DATE.] This section is effective for revenue for 131.32 fiscal year 2006. 131.33 Sec. 15. Minnesota Statutes 2004, section 125A.76, 131.34 subdivision 3, is amended to read: 131.35 Subd. 3. [ADJUSTED SPECIAL EDUCATION BASE REVENUE.] For 131.36 fiscal year19972006 and later, a district's adjusted special 132.1 education base revenue equals the district's special education 132.2 base revenue times the ratio of the district'saverage daily132.3membershipunduplicated count of students with an individual 132.4 education plan for the current school year to the district's 132.5average daily membershipunduplicated count of students with an 132.6 individual education plan for the base year. 132.7 [EFFECTIVE DATE.] This section is effective for revenue for 132.8 fiscal year 2006. 132.9 Sec. 16. Minnesota Statutes 2004, section 125A.76, 132.10 subdivision 4, is amended to read: 132.11 Subd. 4. [STATE TOTAL SPECIAL EDUCATION AID.] The state 132.12 total special education aid for fiscal year 2004 equals 132.13 $530,642,000. The state total special education aid for fiscal 132.14 year 2005 equals $529,164,000. The state total special 132.15 education aid for fiscal year 2006 equals $528,846,000. The 132.16 state total special education aid for later fiscal years equals: 132.17 (1) the state total special education aid for the preceding 132.18 fiscal year; times 132.19 (2) the program growth factor; times 132.20 (3) the ratio of the state total average daily membership 132.21 for the current fiscal year to the state total average daily 132.22 membership for the preceding fiscal year. 132.23 [EFFECTIVE DATE.] This section is effective for revenue for 132.24 fiscal year 2006. 132.25 Sec. 17. Minnesota Statutes 2004, section 125A.79, 132.26 subdivision 1, is amended to read: 132.27 Subdivision 1. [DEFINITIONS.] For the purposes of this 132.28 section, the definitions in this subdivision apply. 132.29 (a) "Unreimbursed special education cost" means the sum of 132.30 the following: 132.31 (1) expenditures for teachers' salaries, contracted 132.32 services, supplies, equipment, and transportation services 132.33 eligible for revenue under section 125A.76; plus 132.34 (2) expenditures for tuition bills received under sections 132.35 125A.03 to 125A.24 and 125A.65 for services eligible for revenue 132.36 under section 125A.76, subdivision 2; minus 133.1 (3) revenue for teachers' salaries, contracted services, 133.2 supplies, and equipment under section 125A.76; minus 133.3 (4) tuition receipts under sections 125A.03 to 125A.24 and 133.4 125A.65 for services eligible for revenue under section 125A.76, 133.5 subdivision 2. 133.6 (b)"General revenue" means for fiscal year 1996, the sum133.7of the general education revenue according to section 126C.10,133.8subdivision 1, as adjusted according to section 127A.47,133.9subdivision 7, plus the total referendum revenue according to133.10section 126C.17, subdivision 4. For fiscal years 1997 and133.11later,"General revenue" means the sum of the general education 133.12 revenue according to section 126C.10, subdivision 1, as adjusted 133.13 according to section 127A.47, subdivisions 7 and 8, plus the 133.14 total referendum revenue minus transportation sparsity revenue 133.15 minus total operating capital revenue. 133.16 (c) "Average daily membership" has the meaning given it in 133.17 section 126C.05. 133.18 (d) "Program growth factor" means 1.02 for fiscal year 133.19 2003, and; 1.0 for fiscalyearyears 2004 and 2005; and 1.02 133.20 for fiscal year 2006 and later. 133.21 [EFFECTIVE DATE.] This section is effective for revenue for 133.22 fiscal year 2006. 133.23 Sec. 18. Minnesota Statutes 2004, section 125A.79, 133.24 subdivision 6, is amended to read: 133.25 Subd. 6. [STATE TOTAL SPECIAL EDUCATION EXCESS COST AID.] 133.26 The state total special education excess cost aid for fiscal 133.27 year 2004 equals $92,067,000. The state total special education 133.28 aid for fiscal year 2005 equals $91,811,000. The state total 133.29 special education excess cost aid for fiscal year 2006 equals 133.30 $91,784,000. The state total special education excess cost aid 133.31 for fiscal year20062007 and later fiscal years equals: 133.32 (1) the state total special education excess cost aid for 133.33 the preceding fiscal year; times 133.34 (2) the program growth factor; times 133.35 (3) the ratio of the state total average daily membership 133.36 for the current fiscal year to the state total average daily 134.1 membership for the preceding fiscal year; 134.2 (4) all less the amount transferred into the charter school 134.3 special education reimbursement account under section 125A.795. 134.4 [EFFECTIVE DATE.] This section is effective for revenue for 134.5 fiscal year 2006. 134.6 Sec. 19. [125A.795] [CHARTER SCHOOL SPECIAL EDUCATION 134.7 REIMBURSEMENT ACCOUNT.] 134.8 Subdivision 1. [ACCOUNT CREATED.] The charter school 134.9 special education reimbursement account is created in the state 134.10 general fund. 134.11 Subd. 2. [REVENUE.] The estimated amount necessary to pay 134.12 for the state share of net unreimbursed special education costs 134.13 of charter school pupils with a disability is transferred from 134.14 the appropriation for special education excess cost aid to the 134.15 charter school special education reimbursement account. 134.16 Subd. 3. [REVIEW.] The commissioner of education must 134.17 examine the tuition bills from charter schools and may adjust 134.18 the bills in the same manner as authorized under section 125A.80. 134.19 [EFFECTIVE DATE.] This section is effective July 1, 2005, 134.20 for revenue for fiscal year 2006. 134.21 Sec. 20. Minnesota Statutes 2004, section 126C.40, 134.22 subdivision 1, is amended to read: 134.23 Subdivision 1. [TO LEASE BUILDING OR LAND.] (a) When an 134.24 independent or a special school district or a group of 134.25 independent or special school districts finds it economically 134.26 advantageous to rent or lease a building or land for any 134.27 instructional purposes or for school storage or furniture 134.28 repair, and it determines that the operating capital revenue 134.29 authorized under section 126C.10, subdivision 13, is 134.30 insufficient for this purpose, it may apply to the commissioner 134.31 for permission to make an additional capital expenditure levy 134.32 for this purpose. An application for permission to levy under 134.33 this subdivision must contain financial justification for the 134.34 proposed levy, the terms and conditions of the proposed lease, 134.35 and a description of the space to be leased and its proposed use. 134.36 (b) The criteria for approval of applications to levy under 135.1 this subdivision must include: the reasonableness of the price, 135.2 the appropriateness of the space to the proposed activity, the 135.3 feasibility of transporting pupils to the leased building or 135.4 land, conformity of the lease to the laws and rules of the state 135.5 of Minnesota, and the appropriateness of the proposed lease to 135.6 the space needs and the financial condition of the district. 135.7 The commissioner must not authorize a levy under this 135.8 subdivision in an amount greater than 90 percent of the cost to 135.9 the district of renting or leasing a building or land for 135.10 approved purposes. The proceeds of this levy must not be used 135.11 for custodial or other maintenance services. A district may not 135.12 levy under this subdivision for the purpose of leasing or 135.13 renting a district-owned building or site to itself. 135.14 (c) For agreements finalized after July 1, 1997, a district 135.15 may not levy under this subdivision for the purpose of leasing: 135.16 (1) a newly constructed building used primarily for regular 135.17 kindergarten, elementary, or secondary instruction; or (2) a 135.18 newly constructed building addition or additions used primarily 135.19 for regular kindergarten, elementary, or secondary instruction 135.20 that contains more than 20 percent of the square footage of the 135.21 previously existing building. 135.22 (d) Notwithstanding paragraph (b), a district may levy 135.23 under this subdivision for the purpose of leasing or renting a 135.24 district-owned building or site to itself only if the amount is 135.25 needed by the district to make payments required by a lease 135.26 purchase agreement, installment purchase agreement, or other 135.27 deferred payments agreement authorized by law, and the levy 135.28 meets the requirements of paragraph (c). A levy authorized for 135.29 a district by the commissioner under this paragraph may be in 135.30 the amount needed by the district to make payments required by a 135.31 lease purchase agreement, installment purchase agreement, or 135.32 other deferred payments agreement authorized by law, provided 135.33 that any agreement include a provision giving the school 135.34 districts the right to terminate the agreement annually without 135.35 penalty. 135.36 (e) The total levy under this subdivision for a district 136.1 for any year must not exceed $90 times the resident pupil units 136.2 for the fiscal year to which the levy is attributable. 136.3 (f) For agreements for which a review and comment have been 136.4 submitted to the Department of Education after April 1, 1998, 136.5 the term "instructional purpose" as used in this subdivision 136.6 excludes expenditures on stadiums. 136.7 (g) The commissioner of education may authorize a school 136.8 district to exceed the limit in paragraph (e) if the school 136.9 district petitions the commissioner for approval. The 136.10 commissioner shall grant approval to a school district to exceed 136.11 the limit in paragraph (e) for not more than five years if the 136.12 district meets the following criteria: 136.13 (1) the school district has been experiencing pupil 136.14 enrollment growth in the preceding five years; 136.15 (2) the purpose of the increased levy is in the long-term 136.16 public interest; 136.17 (3) the purpose of the increased levy promotes colocation 136.18 of government services; and 136.19 (4) the purpose of the increased levy is in the long-term 136.20 interest of the district by avoiding over construction of school 136.21 facilities. 136.22 (h) A school district that is a member of an intermediate 136.23 school district may include in its authority under this section 136.24 90 percent of the costs associated with leases of administrative 136.25 and classroom space for intermediate school district programs. 136.26 This authority must not exceed $22.50 times the adjusted 136.27 marginal cost pupil units of the member districts. This 136.28 authority is in addition to any other authority authorized under 136.29 this section. 136.30 (i) In addition to the allowable capital levies in 136.31 paragraph (a), a district that is a member of the "Technology 136.32 and Information Education Systems" data processing joint board, 136.33 that finds it economically advantageous to enter into a lease 136.34 purchase agreement for a building for a group of school 136.35 districts or special school districts for staff development 136.36 purposes, may levy for its portion of lease costs attributed to 137.1 the district within the total levy limit in paragraph (e). 137.2 (j) A school district that is a member of the Wright 137.3 Technical Center may include in its authority under this section 137.4 90 percent of the costs associated with leases of administrative 137.5 and classroom space at the Wright Technical Center. This 137.6 authority must not exceed $22.50 times the adjusted marginal 137.7 cost pupil units of the member districts. This authority may be 137.8 in addition to any other authority authorized under this section. 137.9 Sec. 21. Minnesota Statutes 2004, section 126C.457, is 137.10 amended to read: 137.11 126C.457 [CAREER AND TECHNICAL LEVY.] 137.12 For taxes payable in 2006, 2007, and 2008, a school 137.13 district may levy an amount equal to the greater of (1) $10,000, 137.14 or (2) the district's fiscal year 2001 entitlement for career 137.15 and technical aid under Minnesota Statutes 2000, section 137.16 124D.453. The district must recognize the full amount of this 137.17 levy as revenue for the fiscal year in which it is certified. 137.18 Revenue received under this section must be reserved and used 137.19 only for career and technical programs. 137.20 Sec. 22. [127A.21] [STATE COORDINATOR FOR WORLD 137.21 LANGUAGES.] 137.22 (a) The commissioner of education shall designate a 137.23 full-time state coordinator for world languages education within 137.24 the Department of Education by July 1, 2005. The commissioner 137.25 shall seek input from the Quality Teaching Network before 137.26 designating or hiring the coordinator who must have classroom 137.27 experience teaching world languages. The coordinator, at a 137.28 minimum, shall: 137.29 (1) survey school districts in the state to: 137.30 (i) identify the types of existing world language programs 137.31 and exemplary model extended world languages programs; and 137.32 (ii) in consultation with Minnesota postsecondary 137.33 institutions, identify and address staff development needs of 137.34 current world language teachers and preservice teachers; 137.35 (2) identify successful extended world language programs 137.36 from other states; 138.1 (3) establish guidelines for a variety of model extended 138.2 world languages programs; 138.3 (4) research and recommend the funding necessary to 138.4 implement various models of extended world languages programs in 138.5 different languages; and 138.6 (5) support and monitor, using the most recent information 138.7 available, current world languages programs. 138.8 (b) For the purposes of this section, "extended world 138.9 languages program" means a world languages program: 138.10 (1) with a sequence of consecutive years in any of 138.11 kindergarten through grade 12, including, for example, sequences 138.12 of kindergarten through grade 12, grades 5 through 12, and 138.13 grades 7 through 12; and 138.14 (2) based on professionally recognized proficiency 138.15 guidelines, and which incorporates current best practices for 138.16 world language programs. 138.17 Sec. 23. Minnesota Statutes 2004, section 127A.47, 138.18 subdivision 7, is amended to read: 138.19 Subd. 7. [ALTERNATIVE ATTENDANCE PROGRAMS.] The general 138.20 education aid and special education aid for districts must be 138.21 adjusted for each pupil attending a nonresident district under 138.22 sections 123A.05 to 123A.08, 124D.03, 124D.06, 124D.08, and 138.23 124D.68. The adjustments must be made according to this 138.24 subdivision. 138.25 (a) General education aid paid to a resident district must 138.26 be reduced by an amount equal to the referendum equalization aid 138.27 attributable to the pupil in the resident district. 138.28 (b) General education aid paid to a district serving a 138.29 pupil in programs listed in this subdivision must be increased 138.30 by an amount equal to the referendum equalization aid 138.31 attributable to the pupil in the nonresident district. 138.32 (c) If the amount of the reduction to be made from the 138.33 general education aid of the resident district is greater than 138.34 the amount of general education aid otherwise due the district, 138.35 the excess reduction must be made from other state aids due the 138.36 district. 139.1 (d) For fiscal year 2006, the district of residence must 139.2 pay tuition to a district or an area learning center, operated 139.3 according to paragraph(e)(f), providing special instruction 139.4 and services to a pupil with a disability, as defined in section 139.5 125A.02, or a pupil, as defined in section 125A.51, who is 139.6 enrolled in a program listed in this subdivision. The tuition 139.7 must be equal to (1) the actual cost of providing special 139.8 instruction and services to the pupil, including a proportionate 139.9 amount fordebt service and for capital expenditure facilities139.10and equipment, and debt service but not including any amount for139.11 special transportation and unreimbursed building lease and debt 139.12 service costs for facilities used primarily for special 139.13 education, minus (2) if the pupil receives special instruction 139.14 and services outside the regular classroom for more than 60 139.15 percent of the school day, the amount of general education 139.16 revenue and referendum aid attributable to that pupil for the 139.17 portion of time the pupil receives special instruction and 139.18 services outside of the regular classroom, excluding portions 139.19 attributable to district and school administration, district 139.20 support services, operations and maintenance, capital 139.21 expenditures, and pupil transportation, minus (3) special 139.22 education aidbut not including any amount for transportation,139.23 attributable to that pupil, that is received by the district 139.24 providing special instruction and services. For purposes of 139.25 this paragraph, general education revenue and referendum aid 139.26 attributable to a pupil must be calculated using the serving 139.27 district's average general education revenue and referendum aid 139.28 per adjusted pupil unit. 139.29 (e) For fiscal year 2007 and later, special education aid 139.30 paid to a resident district must be reduced by an amount equal 139.31 to (1) the actual cost of providing special instruction and 139.32 services, including special transportation and unreimbursed 139.33 building lease and debt service costs for facilities used 139.34 primarily for special education, for a pupil with a disability, 139.35 as defined in section 125A.02, or a pupil, as defined in section 139.36 125A.51, who is enrolled in a program listed in this 140.1 subdivision, minus (2) if the pupil receives special instruction 140.2 and services outside the regular classroom for more than 60 140.3 percent of the school day, the amount of general education 140.4 revenue and referendum aid attributable to that pupil for the 140.5 portion of time the pupil receives special instruction and 140.6 services outside of the regular classroom, excluding portions 140.7 attributable to district and school administration, district 140.8 support services, operations and maintenance, capital 140.9 expenditures, and pupil transportation, minus (3) special 140.10 education aid attributable to that pupil, that is received by 140.11 the district providing special instruction and services. For 140.12 purposes of this paragraph, general education revenue and 140.13 referendum aid attributable to a pupil must be calculated using 140.14 the serving district's average general education revenue and 140.15 referendum aid per adjusted pupil unit. Special education aid 140.16 paid to the district providing special instruction and services 140.17 for the pupil, or to the fiscal agent district for a 140.18 cooperative, must be increased by the amount of the reduction in 140.19 the aid paid to the resident district. If the resident 140.20 district's special education aid is insufficient to make the 140.21 full adjustment, the remaining adjustment shall be made to other 140.22 state aids due to the district. 140.23 (f) An area learning center operated by a service 140.24 cooperative, intermediate district, education district, or a 140.25 joint powers cooperative may elect through the action of the 140.26 constituent boards to charge the resident district tuition for 140.27 pupils rather than to have the general education revenue paid to 140.28 a fiscal agent school district. Except as provided in paragraph 140.29 (d) or (e), the district of residence must pay tuition equal to 140.30 at least 90 percent of the district average general education 140.31 revenue per pupil unit minus an amount equal to the product of 140.32 the formula allowance according to section 126C.10, subdivision 140.33 2, times .0485 for fiscal year 2006, and .0458 for fiscal year 140.34 2007 and later fiscal years, calculated without basic skills 140.35 revenue and transportation sparsity revenue, times the number of 140.36 pupil units for pupils attending the area learning center, plus 141.1 the amount of compensatory revenue generated by pupils attending 141.2 the area learning center. 141.3 Sec. 24. Minnesota Statutes 2004, section 134.31, is 141.4 amended by adding a subdivision to read: 141.5 Subd. 6. [ADVISORY COMMITTEE.] The commissioner shall 141.6 appoint an advisory committee of five members to advise the 141.7 staff of the Minnesota Library for the Blind and Physically 141.8 Handicapped on long-range plans and library services. Members 141.9 shall be people who use the library. Section 15.059 governs 141.10 this committee except that the committee shall not expire. 141.11 Sec. 25. 2005 Senate File No. 1879, article 3, section 3, 141.12 subdivision 32, if enacted, is amended to read: 141.13 Subd. 32. [SPECIAL EDUCATION; REGULAR.] For special 141.14 education aid under Minnesota Statutes, section 125A.75: 141.15 $528,846,000 ..... 2006 141.16 $527,446,000546,111,000 ..... 2007 141.17 The 2006 appropriation includes $83,078,000 for 2005 and 141.18 $445,768,000 for 2006. 141.19 The 2007 appropriation includes $83,019,000 for 2006 and 141.20 $444,427,000463,092,000 for 2007. 141.21 Sec. 26. 2005 Senate File No. 1879, article 3, section 3, 141.22 subdivision 35, if enacted, is amended to read: 141.23 Subd. 35. [SPECIAL EDUCATION; EXCESS COSTS.] For excess 141.24 cost aid under Minnesota Statutes, section 125A.79, subdivision 141.25 7: 141.26 $91,784,000 ..... 2006 141.27 $91,595,00093,430,000 ..... 2007 141.28 The 2006 appropriation includes $37,455,000 for 2005 and 141.29 $54,329,000 for 2006. 141.30 The 2007 appropriation includes $37,417,00039,252,000 for 141.31 2006 and $54,178,000 for 2007. 141.32 Sec. 27. 2005 Senate File No. 1879, article 3, section 3, 141.33 subdivision 36, if enacted, is amended to read: 141.34 Subd. 36. [LITIGATION COSTS FOR SPECIAL EDUCATION.] For 141.35 paying the costs a district incurs under Minnesota Statutes, 141.36 section 125A.75, subdivision 8: 142.1 $17,0000 ..... 2006 142.2 $17,0000 ..... 2007 142.3 Sec. 28. [EMINENCE CREDENTIALING.] 142.4 Subdivision 1. [GOAL.] It is the goal of the state to 142.5 support the teaching and revitalization of the Dakota and 142.6 Anishinaabe languages. The Native Language Eminence 142.7 Credentialing Task Force is created to achieve this goal. 142.8 Subd. 2. [MEMBERSHIP.] The Native Language Eminence 142.9 Credentialing Task Force consists of the following members: 142.10 (1) four members representing public schools with large 142.11 Native American populations appointed by the commissioner of 142.12 education; 142.13 (2) one member appointed by each federally recognized 142.14 Indian tribe in the state; 142.15 (3) one member appointed by each institution of higher 142.16 education that trains credentialed Dakota and Anishinaabe 142.17 language teachers; 142.18 (4) one member representing the Minnesota Historical 142.19 Society; 142.20 (5) the chair of the state Indian Affairs Council; and 142.21 (6) three native speakers of the Anishinaabe language and 142.22 three native speakers of the Dakota language, all appointed by 142.23 the Dakota Ojibwe Language Revitalization Alliance. 142.24 Subd. 3. [ADMINISTRATION.] (a) The Native Language 142.25 Eminence Credentialing Task Force is governed by Minnesota 142.26 Statutes, section 15.059. 142.27 (b) The task force shall elect a chair from its 142.28 membership. The commissioner of education shall provide staff 142.29 and administrative support for the task force. 142.30 Subd. 4. [DUTIES.] The task force shall review and 142.31 recommend changes to the eminence credentials for teachers of 142.32 the Dakota and Anishinaabe languages in order to increase the 142.33 number of fluent "first speakers" who can teach the language and 142.34 the number of teachers of the Dakota and Anishinaabe languages 142.35 by considering and addressing the following: 142.36 (1) whether a rating system should be developed that 143.1 includes separate ratings for fluency of the spoken language, 143.2 writing and reading skills in language, and specifying which 143.3 dialect of the Anishinaabe and Dakota languages is being spoken; 143.4 (2) whether a strategy for determining the level of fluency 143.5 should be developed; 143.6 (3) consistency of evaluation of language fluency; 143.7 (4) identifying issues between tribal authority and state 143.8 law around strategies of language revitalization; and 143.9 (5) a strategy to provide affordable and accessible 143.10 language and culture credentials throughout Minnesota. 143.11 Subd. 5. [REPORT.] The task force shall submit a report to 143.12 the legislature by January 15, 2006, to fulfill the duties of 143.13 the task force. 143.14 Subd. 6. [EXPIRATION.] The task force expires upon 143.15 submission of the report on January 15, 2006. 143.16 Sec. 29. [TASK FORCE ON DELIVERY OF SPECIAL EDUCATION TO 143.17 NONPUBLIC SCHOOL STUDENTS BY PUBLIC SCHOOL DISTRICTS.] 143.18 Subdivision 1. [PURPOSE; ESTABLISHMENT.] With the 143.19 congressional reauthorization of the federal Individuals with 143.20 Disabilities Education Act, a task force on the delivery of 143.21 special education services to nonpublic school students by 143.22 public school districts shall be established to compare and 143.23 evaluate how the individual needs of each child are being met, 143.24 if services are provided in the least restrictive environment, 143.25 and whether best practices and program efficiencies are being 143.26 used in the specific areas of transportation, location of 143.27 services, and shared time aid. 143.28 Subd. 2. [MEMBERS.] The governor shall appoint the members 143.29 of the task force from each of the following: 143.30 (1) two members from the Department of Education, one 143.31 representing special education programs and policy and one 143.32 representing district finances; 143.33 (2) two special education teachers with one member from a 143.34 public school and one member from a nonpublic school; 143.35 (3) two special education administrators with one member 143.36 from a public school and one member from a nonpublic school; 144.1 (4) two members with one from each of two special education 144.2 advocacy organizations; 144.3 (5) two parents of children receiving special education 144.4 services with one member from a public school and one member 144.5 from a nonpublic school; 144.6 (6) two elementary school principals with one member from a 144.7 public school and one member from a nonpublic school; 144.8 (7) two superintendents with one member from a public 144.9 school district and one member from a nonpublic school district; 144.10 (8) two school business officials with one from a public 144.11 school and one from a nonpublic school; and 144.12 (9) two school board officials with one from a public 144.13 school and one from a nonpublic school. 144.14 The task force may select additional members to work on the 144.15 task force. The commissioner of education shall provide 144.16 necessary materials and assistance. 144.17 Subd. 3. [REPORT.] The task force shall submit a report by 144.18 January 15, 2006, to the house of representatives and senate 144.19 committees having jurisdiction over education on the delivery of 144.20 special education services to nonpublic school students by 144.21 public school districts, to compare and evaluate how the 144.22 individual needs of each child are being met in the least 144.23 restrictive environment, and whether best practices and program 144.24 efficiencies are being used. 144.25 Subd. 4. [EXPIRATION.] This section expires January 31, 144.26 2006. 144.27 [EFFECTIVE DATE.] This section is effective the day 144.28 following final enactment. 144.29 Sec. 30. [APPROPRIATIONS.] 144.30 Subdivision 1. [DEPARTMENT OF EDUCATION.] The sums 144.31 indicated in this section are appropriated from the general fund 144.32 to the Department of Education for the fiscal years designated. 144.33 Subd. 2. [NONPUBLIC STUDENT SPECIAL EDUCATION TASK FORCE.] 144.34 For funding of a task force on delivery of special education to 144.35 nonpublic school students by public school districts: 144.36 $50,000 ..... 2006 145.1 Subd. 3. [NATIVE LANGUAGE EMINENCE CREDENTIALING TASK 145.2 FORCE.] For funding of a task force to support the teaching and 145.3 revitalization of the Dakota and Anishinaabe languages: 145.4 $102,000 ..... 2006 145.5 Sec. 31. [REPEALER.] 145.6 Minnesota Statutes 2004, section 125A.75, subdivision 8, is 145.7 repealed. 145.8 ARTICLE 4 145.9 TECHNOLOGY, FACILITIES, AND ACCOUNTING 145.10 Section 1. Minnesota Statutes 2004, section 123B.42, is 145.11 amended by adding a subdivision to read: 145.12 Subd. 1a. [CURRICULUM; ELECTRONIC COMPONENTS.] A school 145.13 district that provides curriculum to resident students that has 145.14 both physical and electronic components must make the electronic 145.15 component accessible to a resident student in a home school in 145.16 compliance with sections 120A.22 and 120A.24 at the request of 145.17 the student or the student's parent or guardian, provided that 145.18 the district does not incur more than an incidental cost as a 145.19 result of providing access electronically. 145.20 Sec. 2. Minnesota Statutes 2004, section 123B.492, is 145.21 amended to read: 145.22 123B.492 [SUPERVISED COMPETITIVE HIGH SCHOOL DIVING.] 145.23 Notwithstanding Minnesota Rules, part 4717.3750, any pool 145.24 built before January 1, 1987, that was used for a one-meter 145.25 board high school diving program during the 2000-2001 school 145.26 year may be used for supervised competitive one-meter board high 145.27 school diving. Schools and school districts are strongly 145.28 encouraged to use a pool for supervised competitive high school 145.29 diving that meets the requirements of Minnesota Rules, part 145.30 4717.3750. A school or district using a pool for 145.31 supervisedtraining practice forcompetitive high school 145.32 diving for either training practice or competition that does not 145.33 meet the requirements of Minnesota Rules, part 4717.3750, must 145.34 provide appropriate notice to parents and participants as to the 145.35 type of variance from Minnesota Rules and risk it may present. 145.36 Sec. 3. Minnesota Statutes 2004, section 123B.54, as 146.1 amended by 2005 S. F. No. 1879, article 3, section 1, if 146.2 enacted, is amended to read: 146.3 123B.54 [DEBT SERVICE APPROPRIATION.] 146.4 (a)$22,942,000$22,282,000 in fiscal year 2008 and 146.5$21,942,000$21,182,000 in fiscal year 2009 and later are 146.6 appropriated from the general fund to the commissioner of 146.7 education for payment of debt service equalization aid under 146.8 section 123B.53. 146.9 (b) The appropriations in paragraph (a) must be reduced by 146.10 the amount of any money specifically appropriated for the same 146.11 purpose in any year from any state fund. 146.12 Sec. 4. [123B.715] [ACOUSTICAL PERFORMANCE CRITERIA.] 146.13 School districts are encouraged to consider the American 146.14 National Standards Institute acoustical performance criteria 146.15 design requirements and guidelines for schools of the maximum 146.16 background noise level and reverberation times when designing a 146.17 new building or remodeling an existing building. 146.18 Sec. 5. Minnesota Statutes 2004, section 124D.095, 146.19 subdivision 2, is amended to read: 146.20 Subd. 2. [DEFINITIONS.] For purposes of this section, the 146.21 following terms have the meanings given them. 146.22 (a) "Online learning" is an interactive course or program 146.23 that delivers instruction from a teacher to a student by 146.24 computer; is combined with other traditional delivery methods 146.25 that include frequent student assessment and may include actual 146.26 teacher contact time; and meets or exceeds state academic 146.27 standards. 146.28 (b) "Online learning provider" is a school district, an 146.29 intermediate school district, an organization of two or more 146.30 school districts operating under a joint powers agreement, or a 146.31 charter school located in Minnesota that provides online 146.32 learning to students. 146.33 (c) "Student" is a Minnesota resident enrolled in a school 146.34 under section 120A.22, subdivision 4, in kindergarten through 146.35 grade 12. 146.36 (d) "Online learning student" is a student enrolled in an 147.1 online learning course or program delivered by an online 147.2 provider under paragraph (b). 147.3 (e) "Enrolling district" means the school district or 147.4 charter school in which a student is enrolled under section 147.5 120A.22, subdivision 4, for purposes of compulsory attendance. 147.6 Sec. 6. Minnesota Statutes 2004, section 124D.095, 147.7 subdivision 4, is amended to read: 147.8 Subd. 4. [ONLINE LEARNING PARAMETERS.] (a) An online 147.9 learning student must receive academic credit for completing the 147.10 requirements of an online learning course or program. Secondary 147.11 credits granted to an online learning student must be counted 147.12 toward the graduation and credit requirements of the enrolling 147.13 district. The enrolling district must apply the same graduation 147.14 requirements to all students, including online learning 147.15 students, and must continue to provide nonacademic services to 147.16 online learning students. If a student completes an online 147.17 learning course or program that meets or exceeds a graduation 147.18 standard or grade progression requirement at the enrolling 147.19 district, that standard or requirement is met. The enrolling 147.20 district must use the same criteria for accepting online 147.21 learning credits or courses as it does for accepting credits or 147.22 courses for transfer students under section 124D.03, subdivision 147.23 9. The enrolling district may reduce the teacher contact time 147.24 of an online learning student in proportion to the number of 147.25 online learning courses the student takes from an online 147.26 learning provider that is not the enrolling district. 147.27 (b) An online learning student may: 147.28 (1) enroll during a single school year in a maximum of 12 147.29 semester-long courses or their equivalent delivered by an online 147.30 learning provider or the enrolling district; 147.31 (2) complete course work at a grade level that is different 147.32 from the student's current grade level; and 147.33 (3) enroll in additional courses with the online learning 147.34 provider under a separate agreement that includes terms for 147.35 payment of any tuition or course fees. 147.36 (c) A student with a disability may enroll in an online 148.1 learning course or program if the student's IEP team determines 148.2 that online learning is appropriate education for the student. 148.3 (d) An online learning student has the same access to the 148.4 computer hardware and education software available in a school 148.5 as all other students in the enrolling district. An online 148.6 learning provider must assist an online learning student whose 148.7 family qualifies for the education tax credit under section 148.8 290.0674 to acquire computer hardware and educational software 148.9 for online learning purposes. 148.10 (e) An enrolling district may offer online learning to its 148.11 enrolled students. Such online learning does not generate 148.12 online learning funds under this section. An enrolling district 148.13 that offers online learning only to its enrolled students is not 148.14 subject to the reporting requirements or review criteria under 148.15 subdivision 7. A teacher with a Minnesota license must assemble 148.16 and deliver instruction to enrolled students receiving online 148.17 learning from an enrolling district. The delivery of 148.18 instruction occurs when the student interacts with the computer 148.19 or the teacher and receives ongoing assistance and assessment of 148.20 learning. The instruction may include curriculum developed by 148.21 persons other than a teacher with a Minnesota license. 148.22 (f) An online learning provider that is not the enrolling 148.23 district is subject to the reporting requirements and review 148.24 criteria under subdivision 7. A teacher with a Minnesota 148.25 license must assemble and deliver instruction to online learning 148.26 students. The delivery of instruction occurs when the student 148.27 interacts with the computer or the teacher and receives ongoing 148.28 assistance and assessment of learning. The instruction may 148.29 include curriculum developed by persons other than a teacher 148.30 with a Minnesota license. Unless the commissioner grants a 148.31 waiver, a teacher providing online learning instruction must not 148.32 instruct more than 40 students in any one online learning course 148.33 or program. 148.34 Sec. 7. Minnesota Statutes 2004, section 124D.095, 148.35 subdivision 8, is amended to read: 148.36 Subd. 8. [FINANCIAL ARRANGEMENTS.] (a) For a student 149.1 enrolled in an online learning course, the department must 149.2 calculate average daily membership and make payments according 149.3 to this subdivision. 149.4 (b) The initial online learning average daily membership 149.5 equals 1/12 for each semester course or a proportionate amount 149.6 for courses of different lengths. The adjusted online learning 149.7 average daily membership equals the initial online learning 149.8 average daily membership times .88. 149.9 (c) No online learning average daily membership shall be 149.10 generated if: (1) the student does not complete the online 149.11 learning course, or (2) the student is enrolled in online 149.12 learning provided by the enrolling district and the student was 149.13 either enrolled in a Minnesota public school for the school year 149.14 before the school year in which the student first enrolled in 149.15 online learning, or the student is enrolled in an instructional 149.16 program in which at least 40 percent of the total instructional 149.17 time takes place in the school's facilities. For students 149.18 enrolled in online learning according to clause (2), the 149.19 department shall calculate average daily membership according to 149.20 section 126C.05, subdivision 8. 149.21 (d) Online learning average daily membership under this 149.22 subdivision for a student currently enrolled in a Minnesota 149.23 public school and who was enrolled in a Minnesota public school 149.24 for the school year before the school year in which the student 149.25 first enrolled in online learning shall be used only for 149.26 computing average daily membership according to section 126C.05, 149.27 subdivision 19, paragraph (a), clause(ii)(2), and for 149.28 computing online learning aid according to section126C.24149.29 124D.096. 149.30 (e) Online learning average daily membership under this 149.31 subdivision for students not included in paragraph (c) or (d) 149.32 shall be used only for computing average daily membership 149.33 according to section 126C.05, subdivision 19, paragraph (a), 149.34 clause(ii)(2), and for computing payments under paragraphs (f) 149.35 and (g). 149.36 (f) Subject to the limitations in this subdivision, the 150.1 department must pay an online learning provider an amount equal 150.2 to the product of the adjusted online learning average daily 150.3 membership for students under paragraph (e) times the student 150.4 grade level weighting under section 126C.05, subdivision 1, 150.5 times the formula allowance. 150.6 (g) The department must pay each online learning provider 150.7 100 percent of the amount in paragraph (f) within 45 days of 150.8 receiving final enrollment and course completion information 150.9 each quarter or semester. 150.10 [EFFECTIVE DATE.] This section is effective the day 150.11 following final enactment. 150.12 Sec. 8. Minnesota Statutes 2004, section 124D.095, is 150.13 amended by adding a subdivision to read: 150.14 Subd. 10. [ONLINE LEARNING ADVISORY COUNCIL.] (a) An 150.15 online learning advisory council is established under section 150.16 15.059, except that the term for each council member shall be 150.17 three years. The advisory council is composed of 12 members 150.18 from throughout the state who have demonstrated experience with 150.19 or interest in online learning. The members of the council 150.20 shall be appointed by the commissioner. The advisory council 150.21 shall bring to the attention of the commissioner any matters 150.22 related to online learning and provide input to the department 150.23 in matters related, but not restricted, to: 150.24 (1) quality assurance; 150.25 (2) teacher qualifications; 150.26 (3) program approval; 150.27 (4) special education; 150.28 (5) attendance; 150.29 (6) program design and requirements; and 150.30 (7) fair and equal access to programs. 150.31 (b) The online learning advisory council under this 150.32 subdivision expires June 30, 2008. 150.33 Sec. 9. [125B.26] [TELECOMMUNICATIONS/INTERNET ACCESS 150.34 EQUITY AID.] 150.35 Subdivision 1. [COSTS TO BE SUBMITTED.] (a) A district or 150.36 charter school shall submit its actual 151.1 telecommunications/Internet access costs for the previous fiscal 151.2 year, adjusted for any e-rate revenue received, to the 151.3 department by August 15 of each year as prescribed by the 151.4 commissioner. Costs eligible for reimbursement under this 151.5 program are limited to the following: 151.6 (1) ongoing or recurring telecommunications/Internet access 151.7 costs associated with Internet access, data lines, and video 151.8 links providing: 151.9 (i) the equivalent of one data line, video link, or 151.10 integrated data/video link that relies on a transport medium 151.11 that operates at a minimum speed of 1.544 megabytes per second 151.12 (T1) for each elementary school, middle school, or high school 151.13 under section 120A.05, subdivisions 9, 11, and 13, including the 151.14 recurring telecommunications line lease costs and ongoing 151.15 Internet access service fees; or 151.16 (ii) the equivalent of one data line or video circuit, or 151.17 integrated data/video link that relies on a transport medium 151.18 that operates at a minimum speed of 1.544 megabytes per second 151.19 (T1) for each district, including recurring telecommunications 151.20 line lease costs and ongoing Internet access service fees; 151.21 (2) recurring costs of contractual or vendor-provided 151.22 maintenance on the school district's wide area network to the 151.23 point of presence at the school building up to the router, 151.24 codec, or other service delivery equipment located at the point 151.25 of presence termination at the school or school district; 151.26 (3) recurring costs of cooperative, shared arrangements for 151.27 regional delivery of telecommunications/Internet access between 151.28 school districts, postsecondary institutions, and public 151.29 libraries including network gateways, peering points, regional 151.30 network infrastructure, Internet2 access, and network support, 151.31 maintenance, and coordination; and 151.32 (4) service provider installation fees for installation of 151.33 new telecommunications lines or increased bandwidth. 151.34 (b) Costs not eligible for reimbursement under this program 151.35 include: 151.36 (1) recurring costs of school district staff providing 152.1 network infrastructure support; 152.2 (2) recurring costs associated with voice and standard 152.3 telephone service; 152.4 (3) costs associated with purchase of network hardware, 152.5 telephones, computers, or other peripheral equipment needed to 152.6 deliver telecommunications access to the school or school 152.7 district; 152.8 (4) costs associated with laying fiber for 152.9 telecommunications access; 152.10 (5) costs associated with wiring school or school district 152.11 buildings; 152.12 (6) costs associated with purchase, installation, or 152.13 purchase and installation of Internet filtering; and 152.14 (7) costs associated with digital content, including online 152.15 learning or distance learning programming, and information 152.16 databases. 152.17 Subd. 2. [E-RATES.] To be eligible for aid under this 152.18 section, a district or charter school is required to file an 152.19 e-rate application either separately or through its 152.20 telecommunications access cluster and have a current technology 152.21 plan on file with the department. Discounts received on 152.22 telecommunications expenditures shall be reflected in the costs 152.23 submitted to the department for aid under this section. 152.24 Subd. 3. [REIMBURSEMENT CRITERIA.] The commissioner shall 152.25 develop criteria for approving costs submitted by organized 152.26 school districts and charter schools under subdivision 1. 152.27 Subd. 4. [DISTRICT AID.] For fiscal year 2006 and later, a 152.28 district or charter school's Internet access equity aid equals 152.29 the district or charter school's approved cost for the previous 152.30 fiscal year according to subdivision 1 exceeding $15 times the 152.31 district's adjusted marginal cost pupil units for the previous 152.32 fiscal year or no reduction if the district is part of an 152.33 organized telecommunications access cluster. Equity aid must be 152.34 distributed to the telecommunications access cluster for 152.35 districts that are members of the cluster or to individual 152.36 districts and charter schools not part of a telecommunications 153.1 access cluster. 153.2 Subd. 5. [TELECOMMUNICATIONS/INTERNET ACCESS SERVICES FOR 153.3 NONPUBLIC SCHOOLS.] (a) Districts shall provide each year upon 153.4 formal request by or on behalf of a nonpublic school, not 153.5 including home schools, located in that district or area, 153.6 ongoing or recurring telecommunications access services to the 153.7 nonpublic school either through existing district providers or 153.8 through separate providers. 153.9 (b) The amount of district aid for telecommunications 153.10 access services for each nonpublic school under this subdivision 153.11 equals the lesser of: 153.12 (1) 90 percent of the nonpublic school's approved cost for 153.13 the previous fiscal year according to subdivision 1 exceeding 153.14 $10 for fiscal year 2006 and later times the number of weighted 153.15 pupils enrolled at the nonpublic school as of October 1 of the 153.16 previous school year; or 153.17 (2) the product of the district's aid per pupil unit 153.18 according to subdivision 4 times the number of weighted pupils 153.19 enrolled at the nonpublic school as of October 1 of the previous 153.20 school year. 153.21 (c) For purposes of this subdivision, nonpublic school 153.22 pupils shall be weighted by grade level using the weighting 153.23 factors defined in section 126C.05, subdivision 1. 153.24 (d) Each year, a district providing services under 153.25 paragraph (a) may claim up to five percent of the aid determined 153.26 in paragraph (b) for costs of administering this subdivision. 153.27 No district may expend an amount for these telecommunications 153.28 access services which exceeds the amount allocated under this 153.29 subdivision. The nonpublic school is responsible for the 153.30 Internet access costs not covered by this section. 153.31 (e) At the request of a nonpublic school, districts may 153.32 allocate the amount determined in paragraph (b) directly to the 153.33 nonpublic school to pay for or offset the nonpublic school's 153.34 costs for telecommunications access services; however, the 153.35 amount allocated directly to the nonpublic school may not exceed 153.36 the actual amount of the school's ongoing or recurring 154.1 telecommunications access costs. 154.2 Subd. 6. [SEVERABILITY.] If any portion of this section is 154.3 found by a court to be unconstitutional, the remaining portions 154.4 of the section shall remain in effect. 154.5 [EFFECTIVE DATE.] This section is effective for revenue for 154.6 fiscal year 2006. 154.7 Sec. 10. Minnesota Statutes 2004, section 126C.17, 154.8 subdivision 11, is amended to read: 154.9 Subd. 11. [REFERENDUM DATE.] (a) Except for a referendum 154.10 held under paragraph (b) or (d), any referendum under this 154.11 section held on a day other than the first Tuesday after the 154.12 first Monday in November must be conducted by mail in accordance 154.13 with section 204B.46. Notwithstanding subdivision 9, paragraph 154.14 (b), to the contrary, in the case of a referendum conducted by 154.15 mail under this paragraph, the notice required by subdivision 9, 154.16 paragraph (b), must be prepared and delivered by first-class 154.17 mail at least 20 days before the referendum. 154.18 (b) In addition to the referenda allowed in subdivision 9, 154.19 clause (a), the commissioner may grant authority to a district 154.20 to hold a referendum on a different day if the district is in 154.21 statutory operating debt and has an approved plan or has 154.22 received an extension from the department to file a plan to 154.23 eliminate the statutory operating debt. 154.24 (c) The commissioner must approve, deny, or modify each 154.25 district's request for a referendum levy on a different day 154.26 within 60 days of receiving the request from a district. 154.27 (d) In addition to the referenda allowed in subdivision 9, 154.28 paragraph (a), a district may hold a referendum on the same day 154.29 as a district election for a facility under chapter 475 if the 154.30 referendum is directly related to the operating costs of the 154.31 proposed facility except for licensed personnel costs. 154.32 [EFFECTIVE DATE.] This section is effective for referenda 154.33 held on or after July 1, 2005. 154.34 Sec. 11. Minnesota Statutes 2004, section 126C.63, 154.35 subdivision 5, is amended to read: 154.36 Subd. 5. [LEVY.] "Levy" means a district's net debt 155.1 service levy after the reduction of debt service equalization 155.2 aid under section 123B.53, subdivision 6. For taxes payable in 155.3 2003 and later, each district's maximum effort debt service levy 155.4 for purposes of subdivision 8, must be reduced by an equal 155.5 number of percentage points if the commissioner of finance 155.6 determines that the levy reduction will not result in a payment 155.7 from the general fund in the state treasury according to section 155.8 16A.641, as would be required under section 126C.72, subdivision 155.9 3. A district's levy that is adjusted under this section must 155.10 not be reduced below30.125 percent of the district's adjusted 155.11 net tax capacity. 155.12 Sec. 12. Minnesota Statutes 2004, section 126C.63, 155.13 subdivision 8, is amended to read: 155.14 Subd. 8. [MAXIMUM EFFORT DEBT SERVICE LEVY.] (a) "Maximum 155.15 effort debt service levy" means the lesser of: 155.16 (1) a levy in whichever of the following amounts is 155.17 applicable: 155.18 (i) in any district receiving a debt service loan for a 155.19 debt service levy payable in 2002 and thereafter, or granted a 155.20 capital loan after January 1, 2002, a levy in total dollar 155.21 amount computed at a rate of4032 percent of adjusted net tax 155.22 capacity for taxes payable in 2002 and thereafter; 155.23 (ii) in any district receiving a debt service loan for a 155.24 debt service levy payable in 2001 or earlier, or granted a 155.25 capital loan before January 2,20012002, a levy in a total 155.26 dollar amount computed at a rate of3228 percent of adjusted 155.27 net tax capacity for taxes payable in 2002 and thereafter; or 155.28 (2) a levy in any district for which a capital loan was 155.29 approved prior to August 1, 1981, a levy in a total dollar 155.30 amount equal to the sum of the amount of the required debt 155.31 service levy and an amount which when levied annually will in 155.32 the opinion of the commissioner be sufficient to retire the 155.33 remaining interest and principal on any outstanding loans from 155.34 the state within 30 years of the original date when the capital 155.35 loan was granted. 155.36 (b) The board in any district affected by the provisions of 156.1 paragraph (a), clause (2), may elect instead to determine the 156.2 amount of its levy according to the provisions of paragraph (a), 156.3 clause (1). If a district's capital loan is not paid within 30 156.4 years because it elects to determine the amount of its levy 156.5 according to the provisions of paragraph (a), clause (2), the 156.6 liability of the district for the amount of the difference 156.7 between the amount it levied under paragraph (a), clause (2), 156.8 and the amount it would have levied under paragraph (a), clause 156.9 (1), and for interest on the amount of that difference, must not 156.10 be satisfied and discharged pursuant to Minnesota Statutes 1988, 156.11 or an earlier edition of Minnesota Statutes if applicable, 156.12 section 124.43, subdivision 4. 156.13 Sec. 13. Minnesota Statutes 2004, section 128C.12, 156.14 subdivision 1, is amended to read: 156.15 Subdivision 1. [DUES AND EVENTS REVENUE.] (a) The state 156.16 auditor annually must examine the accounts of, and audit all 156.17 money paid to, the State High School League by its members. The 156.18 audit must include financial and compliance issues. Thestate156.19auditoraudit must alsoauditinclude all money derived from any 156.20 event sponsored by the league.League audits must include156.21audits of administrative regions of the league. The league and156.22its administrative regions may not contract with private156.23auditors. The scope of the state auditor's examinations of the156.24league must be agreed upon by the board and the state auditor,156.25provided that all requirements of this section must be met.156.26 (b) The administrative regions of the league may contract 156.27 with the state auditor or with a private certified public 156.28 accountant for the audit required by this section. If the audit 156.29 is performed by a private certified public accountant, the state 156.30 auditor may require additional information from the private 156.31 certified public accountant as the state auditor deems in the 156.32 public interest. The state auditor may accept the audit or make 156.33 additional examinations as the state auditor deems to be in the 156.34 public interest. 156.35 Sec. 14. Minnesota Statutes 2004, section 128C.12, 156.36 subdivision 3, is amended to read: 157.1 Subd. 3. [COPIES.] Thestate auditorboard must file 157.2 copies of thefinancial and complianceaudit report with the 157.3 commissioner of education and the director of the Legislative 157.4 Reference Library. 157.5 Sec. 15. Minnesota Statutes 2004, section 128D.11, 157.6 subdivision 9, is amended to read: 157.7 Subd. 9. [NET DEBT DEFINED.] The net debt of the school 157.8 district for the purposes of this limitation is the amount of 157.9 bonds less the amount of all money and the face value of all 157.10 securities then held as a sinking fund for the payment of such 157.11 bonds, and shall not include school aid and tax anticipation 157.12 certificates of indebtedness not in default or bonds issued to 157.13 pay pension fund liabilities under section 475.52, subdivision 6. 157.14 Sec. 16. Minnesota Statutes 2004, section 475.61, 157.15 subdivision 4, is amended to read: 157.16 Subd. 4. [SURPLUS FUNDS.] (a) All such taxes shall be 157.17 collected and remitted to the municipality by the county 157.18 treasurer as other taxes are collected and remitted, and shall 157.19 be used only for payment of the obligations on account of which 157.20 levied or to repay advances from other funds used for such 157.21 payments, except that any surplus remaining in the debt service 157.22 fund when the obligations and interest thereon are paid may be 157.23 appropriated to any other general purpose by the municipality. 157.24 However, for obligations authorized before July 1, 2005, the 157.25 amount of any surplus remaining in the debt service fund of a 157.26 school district when the obligations and interest thereon are 157.27 paid shall be used to reduce the general fundlevylevies 157.28 authorized pursuant to chapters 122A, 123A, 123B, 124D, and 126C 157.29 and the state aids authorized pursuant to chapters 122A, 123A, 157.30 123B, 124D, 125A, 126C, and 127A. For obligations authorized on 157.31 July 1, 2005, or thereafter, the amount of any surplus remaining 157.32 in the debt service fund of a school district when the 157.33 obligations and interest thereon are paid in full may be 157.34 appropriated to any other general purpose by the school district 157.35 without any reduction in state aid or levies or may be used to 157.36 reduce the general fund levies authorized under chapters 122A, 158.1 123A, 123B, 124D, and 126C, and the state aids authorized under 158.2 chapters 122A, 123A, 123B, 124D, 125A, 126C, and 127A. 158.3 (b) If the district qualified for second tier debt service 158.4 equalization aid in the last year that it qualified for debt 158.5 service equalization aid, the reduction to state aids equals the 158.6 lesser of (1) the amount of the surplus times the ratio of the 158.7 district's second tier debt service equalization aid to the 158.8 district's second tier debt service equalization revenue for the 158.9 last year that the district qualified for debt service 158.10 equalization aid; or (2) the district's cumulative amount of 158.11 debt service equalization aid. 158.12 (c) If the district did not qualify for second tier debt 158.13 service equalization aid in the last year that it qualified for 158.14 debt service equalization aid, the reduction to state aids 158.15 equals the lesser of (1) the amount of the surplus times the 158.16 ratio of the district's debt service equalization aid to the 158.17 district's debt service equalization revenue for the last year 158.18 that the district qualified for debt service equalization aid; 158.19 or (2) the district's cumulative amount of debt service 158.20 equalization aid. 158.21 (d) The reduction to the general fundlevylevies equals 158.22 the total amount of the surplus minus the reduction to state 158.23 aids. 158.24 Sec. 17. Laws 1996, chapter 412, article 5, section 24, is 158.25 amended to read: 158.26 Sec. 24. [BONDS PAID FROM TACONITE PRODUCTION TAX 158.27 REVENUES.] 158.28 Subdivision 1. [REFUNDING BONDS.] The appropriation of 158.29 funds from the distribution of taconite production tax revenues 158.30 to the taconite environmental protection tax fund and the 158.31 northeast Minnesota economic protection fund made by Laws 1988, 158.32 chapter 718, article 7, sections 62 and 63, Laws 1989, chapter 158.33 329, article 5, section 20, Laws 1990, chapter 604, article 8, 158.34 section 13, Laws 1992, chapter 499, article 5, section 29,and158.35by sections 18 to 20Laws 1996, chapter 412, article 5, sections 158.36 20 to 22, and Laws 2000, chapter 489, article 5, sections 24 to 159.1 26, shall continue to apply to bonds issued under Minnesota 159.2 Statutes, chapter 475, to refund bonds originally issued 159.3 pursuant to those chapters. 159.4 Subd. 2. [LOCAL PAYMENTS.] School districts that are 159.5 required in Laws 1988, chapter 718, article 7, sections 62 and 159.6 63, Laws 1989, chapter 329, article 5, section 20, Laws 1990, 159.7 chapter 604, article 8, section 13, Laws 1992, chapter 499, 159.8 article 5, section 29,and by sections 18 to 20Laws 1996, 159.9 chapter 412, article 5, sections 20 to 22, and Laws 2000, 159.10 chapter 489, article 5, sections 24 to 26, to impose levies to 159.11 pay debt service on the bonds issued under those provisions to 159.12 the extent the principal and interest on the bonds is not paid 159.13 by distributions from the taconite environmental protection fund 159.14 and the northeast Minnesota economic protection trust, may pay 159.15 their portion of the principal and interest from any funds 159.16 available to them. To the extent a school district uses funds 159.17 other than the proceeds of a property tax levy to pay its share 159.18 of the principal and interest on the bonds, the requirement to 159.19 impose a property tax to pay the local share does not apply to 159.20 the school district. 159.21 [EFFECTIVE DATE.] This section is effective the day 159.22 following final enactment. 159.23 Sec. 18. Laws 2003, First Special Session chapter 9, 159.24 article 4, section 29, as amended by Laws 2003, First Special 159.25 Session chapter 23, section 18, is amended to read: 159.26 Sec. 29. [GARAGE LEASE LEVY; SARTELL.] 159.27 For taxes payable in 2004, 2005,and2006, and 2007, 159.28 independent school district No.740748, Sartell, may levy up to 159.29 $107,000 each year and for taxes payable in 2008 may levy up to 159.30 $67,000 for the purpose of leasing a school bus storage 159.31 facility. The department of education shall include this levy 159.32 in the calculation of eligible building lease levy under 159.33 Minnesota Statutes, section 126C.40, subdivision 1. This levy 159.34 shall not allow the district to exceed the $90 per resident 159.35 pupil unit cap in that section. The district is eligible to 159.36 make this levy only if it sells its current school bus storage 160.1 site to the city of Sartell and the district may not use this 160.2 levy as part of a lease purchase agreement to replace its 160.3 current school bus storage facility. 160.4 Sec. 19. 2005 S.F. No. 1879, article 3, section 3, 160.5 subdivision 41, if enacted, is amended to read: 160.6 Subd. 41. [DEBT SERVICE EQUALIZATION.] For debt service 160.7 aid according to Minnesota Statutes, section 123B.53, 160.8 subdivision 6: 160.9 $25,654,000 ..... 2006 160.10 $24,611,00024,519,000 ..... 2007 160.11 The 2006 appropriation includes $4,654,000 for 2005 and 160.12 $21,000,000 for 2006. 160.13 The 2007 appropriation includes $3,911,000 for 2006 and 160.14 $20,700,00020,608,000 for 2007. 160.15 Sec. 20. [HEALTH AND SAFETY REVENUE; NEW ULM.] 160.16 Notwithstanding Minnesota Statutes, section 123B.57, 160.17 subdivision 6, Independent School District No. 88, New Ulm, may 160.18 use health and safety revenue to construct appurtenances used 160.19 exclusively to house and maintain mechanical air handling 160.20 systems that maintain the air quality necessary for a healthy 160.21 environment. 160.22 [EFFECTIVE DATE.] This section is effective retroactively 160.23 from January 1, 2004. 160.24 Sec. 21. [DISABLED ACCESS LEVY AUTHORITY; EAST GRAND 160.25 FORKS.] 160.26 Notwithstanding the time limits established in Minnesota 160.27 Statutes, section 123B.58, subdivision 3, Independent School 160.28 District No. 595, East Grand Forks, may levy its remaining 160.29 disabled access levy authority over five or fewer years. 160.30 [EFFECTIVE DATE.] This section is effective the day 160.31 following final enactment. 160.32 Sec. 22. [TAX BASE ADJUSTMENTS, FERTILE-BELTRAMI.] 160.33 (a) Notwithstanding Minnesota Statutes, section 123B.61, 160.34 the commissioner of education, when making offsetting levy 160.35 adjustments between levy categories to ensure that each levy 160.36 category is positive for Independent School District No. 599, 161.1 Fertile-Beltrami, shall make such adjustments first between levy 161.2 categories that are imposed on identical tax bases before making 161.3 such adjustments between levy categories that are imposed on 161.4 different tax bases. The commissioner may make offsetting levy 161.5 adjustments between the general fund and the debt service fund, 161.6 if necessary. 161.7 (b) The commissioner of education must make the offsetting 161.8 levy adjustments according to the process in paragraph (a) until 161.9 Independent School District No. 599, Fertile-Beltrami's current 161.10 referendum authority, under Minnesota Statutes, section 126C.17, 161.11 expires. 161.12 Sec. 23. [RESIDENTIAL PROGRAM FACILITIES; WORTHINGTON.] 161.13 Subject to Minnesota Statutes, section 16A.695, Independent 161.14 School District No. 518, Worthington, may use the facilities 161.15 provided under Laws 1994, chapter 643, section 14, subdivision 161.16 8, as amended by Laws 1995, chapter 76, to provide adult foster 161.17 care or child foster care services licensed by the commissioner 161.18 of human services or for other special education purposes. 161.19 [EFFECTIVE DATE.] This section is effective the day 161.20 following final enactment. 161.21 Sec. 24. [FUND TRANSFERS.] 161.22 Subdivision 1. [BUTTERFIELD.] Notwithstanding Minnesota 161.23 Statutes, section 123B.79 or 123B.80, for calendar years 2005 161.24 through 2007, on June 30 of each year, Independent School 161.25 District No. 836, Butterfield, may permanently transfer up to 161.26 $50,000 from its reserved operating capital account in its 161.27 general fund to its undesignated general fund balance and 161.28 $60,000 from its reserved bus purchase account in its general 161.29 fund to its undesignated general fund balance. The total amount 161.30 transferred for the three-year period must not total more than 161.31 $50,000 from the reserved operating capital account and $60,000 161.32 from the reserved bus purchase account. 161.33 Subd. 2. [CHOKIO-ALBERTA.] Notwithstanding Minnesota 161.34 Statutes, section 123B.79 or 123B.80, on June 30, 2005, 161.35 Independent School District No. 771, Chokio-Alberta, may 161.36 permanently transfer up to $150,000 from its reserved operating 162.1 capital account and up to $50,000 from its reserved account for 162.2 disabled accessibility to the undesignated general fund balance. 162.3 Subd. 3. [CLINTON-GRACEVILLE-BEARDSLEY.] Notwithstanding 162.4 Minnesota Statutes, sections 123B.79, 123B.80, and 475.64, 162.5 subdivision 4, on June 30, 2005, Independent School District No. 162.6 2888, Clinton-Graceville-Beardsley may permanently transfer up 162.7 to $244,000 from its reserved for disabled accessibility account 162.8 to its unrestricted general fund account without making a levy 162.9 reduction. 162.10 Subd. 4. [HASTINGS.] Notwithstanding Minnesota Statutes, 162.11 section 123A.27, on June 30, 2005, Independent School District 162.12 No. 200, Hastings, may permanently transfer up to $300,000 from 162.13 its reserved account for instructional services from entities 162.14 formed for cooperative services for special education and 162.15 secondary vocational programs in its general fund to its 162.16 unrestricted general fund account. 162.17 Subd. 5. [LAKE CRYSTAL-WELLCOME MEMORIAL.] Notwithstanding 162.18 Minnesota Statutes, section 123B.79 or 123B.80, on June 30, 162.19 2005, upon approval of the commissioner of education, 162.20 Independent School District No. 2071, Lake Crystal-Wellcome 162.21 Memorial, may permanently transfer up to $133,000 from its 162.22 reserved account for handicapped access to its undesignated 162.23 general fund balance. 162.24 Subd. 6. [M.A.C.C.R.A.Y.] Notwithstanding Minnesota 162.25 Statutes, section 123B.79 or 123B.80, upon approval of the 162.26 commissioner of education, on June 30, 2005, Independent School 162.27 District No. 2180, M.A.C.C.R.A.Y., may permanently transfer up 162.28 to $230,000 from its reserved account for handicapped access to 162.29 its undesignated general fund balance. 162.30 Subd. 7. [MCLEOD WEST.] Notwithstanding Minnesota 162.31 Statutes, section 123B.79 or 123B.80, on or before June 30, 162.32 2007, Independent School District No. 2887, McLeod West, may 162.33 permanently transfer up to $200,000 from its reserved operating 162.34 capital account in its general fund to the undesignated fund 162.35 balance. 162.36 Subd. 8. [RUSSELL.] Notwithstanding Minnesota Statutes, 163.1 section 123B.79 or 123B.80, on June 30, 2005, Independent School 163.2 District No. 418, Russell, may transfer up to $50,000 from its 163.3 reserved capital accounts in its general fund to its 163.4 undesignated fund balance. 163.5 Subd. 9. [RUTHTON.] Notwithstanding Minnesota Statutes, 163.6 section 123B.79 or 123B.80, on June 30, 2005, Independent School 163.7 District No. 584, Ruthton, may permanently transfer up to 163.8 $140,000 from its reserved for operating capital account to the 163.9 undesignated general fund balance. 163.10 Subd. 10. [WINDOM.] Notwithstanding Minnesota Statutes, 163.11 sections 123B.79 and 123B.80, on June 30, 2005, Independent 163.12 School District No. 177, Windom, may permanently transfer up to 163.13 $270,000 from its reserved for operating capital account to the 163.14 undesignated balance in its general fund. 163.15 Subd. 11. [WIN-E-MAC.] Notwithstanding Minnesota Statutes, 163.16 section 123B.79 or 123B.80, on June 30, 2005, Independent School 163.17 District No. 2609, Win-E-Mac, may permanently transfer up to 163.18 $87,000 from its reserved account for disabled accessibility to 163.19 its reserved operating capital account in its general fund. 163.20 [EFFECTIVE DATE.] This section is effective the day 163.21 following final enactment. 163.22 Sec. 25. [STUDY OF AVERAGE SCHOOL CONSTRUCTION COSTS.] 163.23 The commissioner shall submit a report by January 15, 2006, 163.24 to the house of representatives and senate committees having 163.25 jurisdiction over education finance on the costs of construction 163.26 of new school facilities as defined in Minnesota Statutes, 163.27 section 120A.05, including elementary school, middle school, 163.28 secondary school, or prekindergarten through grade 12 163.29 facilities. The commissioner shall review the ranges in costs 163.30 per square foot of new school construction that received a 163.31 positive review and comment during the period July 1, 2002, to 163.32 June 30, 2005, and shall evaluate the specific reasons for those 163.33 ranges in costs. 163.34 Sec. 26. [APPROPRIATIONS.] 163.35 Subdivision 1. [DEPARTMENT OF EDUCATION.] The sums 163.36 indicated in this section are appropriated from the general fund 164.1 to the Department of Education for the fiscal years designated. 164.2 Subd. 2. [EQUITY IN TELECOMMUNICATIONS ACCESS.] For equity 164.3 in telecommunications access: 164.4 $5,000,000 ..... 2006 164.5 $5,000,000 ..... 2007 164.6 If the appropriation amount is insufficient, the 164.7 commissioner shall reduce the reimbursement rate in Minnesota 164.8 Statutes, section 125B.26, subdivisions 4 and 5, and the revenue 164.9 for the fiscal years 2006 and 2007 shall be prorated. The base 164.10 for this program in fiscal year 2008 and later is $10,000,000. 164.11 Any balance in the first year does not cancel but is available 164.12 in the second year. 164.13 Subd. 3. [EMERGENCY AID, RED LAKE.] For Independent School 164.14 District No. 38, Red Lake, for onetime emergency aid to repair 164.15 infrastructure damage to the Red Lake High School as a result of 164.16 the March 21, 2005, school shooting: 164.17 $ 100,000 ..... 2006 164.18 The school district must submit proposed expenditures for 164.19 these funds for review and comment approval under Minnesota 164.20 Statutes, section 123B.71, before the commissioner releases the 164.21 funds to the district. 164.22 Sec. 27. [REPEALER.] 164.23 Minnesota Statutes 2004, section 128C.12, subdivision 4, is 164.24 repealed. 164.25 [EFFECTIVE DATE.] This section is effective for revenue for 164.26 fiscal year 2006. 164.27 ARTICLE 5 164.28 NUTRITION 164.29 Section 1. Minnesota Statutes 2004, section 124D.111, 164.30 subdivision 1, is amended to read: 164.31 Subdivision 1. [SCHOOL LUNCH AID COMPUTATION.] Each school 164.32 year, the state must pay districts participating in the national 164.33 school lunch program the amount ofeightten cents for each full 164.34 paid, reduced, and free student lunch served to students in the 164.35 district. 164.36 Sec. 2. Minnesota Statutes 2004, section 124D.118, 165.1 subdivision 4, is amended to read: 165.2 Subd. 4. [REIMBURSEMENT.] In accordance with program 165.3 guidelines, the commissioner shall reimburse each participating 165.4 public or nonpublic schoolnine14 cents for each half-pint of 165.5 milk that is served to kindergarten students and is not part of 165.6 a school lunch or breakfast reimbursed under section 124D.111 or 165.7 124D.1158. 165.8 Sec. 3. 2005 S.F. No. 1879, article 3, section 3, 165.9 subdivision 43, if enacted, is amended to read: 165.10 Subd. 43. [SCHOOL LUNCH.] For school lunch aid according 165.11 to Minnesota Statutes, section 124D.111, and Code of Federal 165.12 Regulations, title 7, section 210.17: 165.13 $7,748,0009,585,000 ..... 2006 165.14 $7,826,0009,781,000 ..... 2007 165.15 Sec. 4. 2005 S.F. No. 1879, article 3, section 3, 165.16 subdivision 44, if enacted, is amended to read: 165.17 Subd. 44. [TRADITIONAL SCHOOL BREAKFAST; MILK FOR 165.18 KINDERGARTENERS.] For traditional school breakfast aid under 165.19 Minnesota Statutes, section 124D.1158 and milk for 165.20 kindergarteners under Minnesota Statutes, section 124D.118: 165.21 $4,634,0004,878,000 ..... 2006 165.22 $4,723,0004,968,000 ..... 2007 165.23 Sec. 5. [MILK CONSUMPTION PILOT PROGRAM.] 165.24 Independent School District No. 11, Anoka-Hennepin, and 165.25 Independent School District No. 709, Duluth, are each eligible 165.26 to receive $25,000 in fiscal year 2006 to establish a pilot 165.27 program to enhance milk consumption in the schools. The funds 165.28 must be used by the districts to enhance the attractiveness of 165.29 consuming milk to students in both the school lunch and a la 165.30 carte programs, including, at a minimum, improving 165.31 refrigeration, purchasing products or packaging not previously 165.32 available, and upgrading quality of products previously 165.33 supplied. The pilot program must be implemented during the 165.34 2005-2006 school year. Each district must develop a plan to 165.35 implement the pilot program. The plan must be developed by 165.36 district food service personnel, the dairy which is contracted 166.1 to provide milk to the districts' schools, and representatives 166.2 of the Midwest Dairy Association and the Midwest Dairy Council. 166.3 The plan must be submitted to the Department of Education by 166.4 August 15, 2005. Additional funds for the program may be sought 166.5 from interested individuals and organizations. Each eligible 166.6 school district must report to the house of representatives and 166.7 senate committees having jurisdiction over kindergarten through 166.8 grade 12 education funding and agriculture funding by October 166.9 15, 2006. The report should include statistics on the prior 166.10 year's consumption in the district, the various methods chosen 166.11 to enhance consumption, and the results of those methods. 166.12 Sec. 6. [APPROPRIATIONS.] 166.13 Subdivision 1. [DEPARTMENT OF EDUCATION.] The sums 166.14 indicated in this section are appropriated from the general fund 166.15 to the Department of Education for the fiscal years designated. 166.16 Subd. 2. [MILK CONSUMPTION PILOT PROGRAM.] For milk 166.17 consumption pilot program grants: 166.18 $ 50,000 ..... 2006 166.19 ARTICLE 6 166.20 STATE AGENCIES 166.21 Section 1. 2005 S.F. No. 1879, article 3, section 3, 166.22 subdivision 50, if enacted, is amended to read: 166.23 Subd. 50. [DEPARTMENT.] (a) For the Department of 166.24 Education: 166.25 $21,772,00021,411,000 ..... 2006 166.26 $21,772,00022,696,000 ..... 2007 166.27 Any balance in the first year does not cancel but is 166.28 available in the second year. 166.29 (b) $260,000 each year is for the Minnesota Children's 166.30 Museum. 166.31 (c) $41,000 each year is for the Minnesota Academy of 166.32 Science. 166.33 (d) $621,000 each year is for the Board of Teaching. 166.34 (e) $165,000 each year is for the Board of School 166.35 Administrators. 166.36 (f)$29,000 each year is for Minnesota's Washington, D.C.,167.1officeNone of the amounts appropriated under this subdivision 167.2 may be used for Minnesota's Washington, D.C., office. 167.3 (g) None of the amounts appropriated under this subdivision 167.4 or any federal funds may be used for the communications function 167.5 within the Office of Finance and Administration. The Department 167.6 of Education shall not relocate or rename this function to avoid 167.7 making this reduction. 167.8 (h) $128,000 each year is for the funding of a world 167.9 languages coordinator in the Department of Education. 167.10 (i) $50,000 in fiscal year 2006 and $75,000 in fiscal year 167.11 2007 is for the development and distribution to school districts 167.12 of materials addressing the dangers of methamphetamine. 167.13 (j) $300,000 in fiscal year 2006 and $1,600,000 in fiscal 167.14 year 2007 and later are for value-added index assessment model. 167.15 (k) The base in fiscal year 2008 and later for the 167.16 Department of Education shall be $22,804,000. 167.17 Sec. 2. 2005 S.F. No. 1879, article 3, section 4, if 167.18 enacted, is amended to read: 167.19 Sec. 3. [APPROPRIATIONS; MINNESOTA STATE ACADEMIES.] 167.20 The sums indicated in this section are appropriated from 167.21 the general fund to the Minnesota State Academies for the Deaf 167.22 and the Blind for the fiscal years designated: 167.23 $10,466,00010,878,000 ..... 2006 167.24 $10,466,00010,953,000 ..... 2007 167.25 Any balance in the first year does not cancel but is 167.26 available in the second year. 167.27 Sec. 4. 2005 S.F. No. 1879, article 3, section 5, if 167.28 enacted, is amended to read: 167.29 Sec. 5. [APPROPRIATIONS; PERPICH CENTER FOR ARTS 167.30 EDUCATION.] 167.31 The sums indicated in this section are appropriated from 167.32 the general fund to the Perpich Center for Arts Education for 167.33 the fiscal years designated: 167.34 $6,423,0006,424,000 ..... 2006 167.35 $6,423,0006,422,000 ..... 2007 167.36 Any balance in the first year does not cancel but is 168.1 available in the second year. The base appropriation for fiscal 168.2 year 2008 and later is $6,672,000. 168.3 Sec. 6. [USE OF FEDERAL FUNDS.] 168.4 Subdivision 1. [FEDERAL GRANTS AND AIDS.] The expenditures 168.5 of federal grants and aids as shown in the biennial budget 168.6 document and its supplements are approved and appropriated and 168.7 shall be spent as indicated. 168.8 Subd. 2. [EXCEPTIONS.] (a) Notwithstanding subdivision 1, 168.9 the following grants and aids are appropriated as indicated in 168.10 this section. 168.11 (b) Ninety-five percent of the improving teacher quality 168.12 state grant is appropriated for the professional compensation 168.13 initiative under Minnesota Statutes, section 122A.4142. 168.14 (c) $200,000 of the twenty-first century community learning 168.15 centers funds is appropriated to the summit academy for the 168.16 quantum opportunities program. 168.17 (d) $500,000 of the improving teacher quality state grant 168.18 is appropriated for the principals' leadership institute under 168.19 Minnesota Statutes, section 122A.74. This appropriation is not 168.20 available until the commissioner of education has determined 168.21 that an equal amount has been committed for the operation of the 168.22 institute from nonstate sources and the programmatic elements 168.23 are sufficiently reflective of the goals the state has 168.24 established for principals. 168.25 ARTICLE 7 168.26 TECHNICAL AND CONFORMING AMENDMENTS 168.27 Section 1. Minnesota Statutes 2004, section 120B.31, 168.28 subdivision 4, is amended to read: 168.29 Subd. 4. [STATISTICAL ADJUSTMENTS.] In developing policies 168.30 and assessment processes to hold schools and districts 168.31 accountable for high levels of academic standards, including the168.32profile of learningunder section 120B.021, the commissioner 168.33 shall aggregate student data over time to report student 168.34 performance levels measured at the school district, regional, or 168.35 statewide level. When collecting and reporting the data, the 168.36 commissioner shall: (1) acknowledge the impact of significant 169.1 demographic factors such as residential instability, the number 169.2 of single parent families, parents' level of education, and 169.3 parents' income level on school outcomes; and (2) organize and 169.4 report the data so that state and local policy makers can 169.5 understand the educational implications of changes in districts' 169.6 demographic profiles over time. Any report the commissioner 169.7 disseminates containing summary data on student performance must 169.8 integrate student performance and the demographic factors that 169.9 strongly correlate with that performance. 169.10 Sec. 2. Minnesota Statutes 2004, section 121A.41, 169.11 subdivision 10, is amended to read: 169.12 Subd. 10. [SUSPENSION.] "Suspension" means an action by 169.13 the school administration, under rules promulgated by the school 169.14 board, prohibiting a pupil from attending school for a period of 169.15 no more than ten school days. If a suspension is longer than 169.16 five days, the suspending administrator must provide the 169.17 superintendent with a reason for the longer suspension. This 169.18 definition does not apply to dismissal from school for one 169.19 school day or less, except as provided in federal law for a 169.20 student with a disability. Each suspension action may include a 169.21 readmission plan. The readmission plan shall include, where 169.22 appropriate, a provision for implementing alternative 169.23 educational services upon readmission and may not be used to 169.24 extend the current suspension. Consistent with section 169.25125A.09125A.091, subdivision35, the readmission plan must not 169.26 obligate a parent to provide a sympathomimetic medication for 169.27 the parent's child as a condition of readmission. The school 169.28 administration may not impose consecutive suspensions against 169.29 the same pupil for the same course of conduct, or incident of 169.30 misconduct, except where the pupil will create an immediate and 169.31 substantial danger to self or to surrounding persons or 169.32 property, or where the district is in the process of initiating 169.33 an expulsion, in which case the school administration may extend 169.34 the suspension to a total of 15 days. In the case of a student 169.35 with a disability, the student's individual education plan team 169.36 must meet immediately but not more than ten school days after 170.1 the date on which the decision to remove the student from the 170.2 student's current education placement is made. The individual 170.3 education plan team and other qualified personnel shall at that 170.4 meeting: conduct a review of the relationship between the 170.5 child's disability and the behavior subject to disciplinary 170.6 action; and determine the appropriateness of the child's 170.7 education plan. 170.8 The requirements of the individual education plan team 170.9 meeting apply when: 170.10 (1) the parent requests a meeting; 170.11 (2) the student is removed from the student's current 170.12 placement for five or more consecutive days; or 170.13 (3) the student's total days of removal from the student's 170.14 placement during the school year exceed ten cumulative days in a 170.15 school year. The school administration shall implement 170.16 alternative educational services when the suspension exceeds 170.17 five days. A separate administrative conference is required for 170.18 each period of suspension. 170.19 Sec. 3. Minnesota Statutes 2004, section 124D.10, 170.20 subdivision 8, is amended to read: 170.21 Subd. 8. [STATE AND LOCAL REQUIREMENTS.] (a) A charter 170.22 school shall meet all applicable state and local health and 170.23 safety requirements. 170.24 (b) A school sponsored by a school board may be located in 170.25 any district, unless the school board of the district of the 170.26 proposed location disapproves by written resolution. 170.27 (c) A charter school must be nonsectarian in its programs, 170.28 admission policies, employment practices, and all other 170.29 operations. A sponsor may not authorize a charter school or 170.30 program that is affiliated with a nonpublic sectarian school or 170.31 a religious institution. 170.32 (d) Charter schools must not be used as a method of 170.33 providing education or generating revenue for students who are 170.34 being home-schooled. 170.35 (e) The primary focus of a charter school must be to 170.36 provide a comprehensive program of instruction for at least one 171.1 grade or age group from five through 18 years of age. 171.2 Instruction may be provided to people younger than five years 171.3 and older than 18 years of age. 171.4 (f) A charter school may not charge tuition. 171.5 (g) A charter school is subject to and must comply with 171.6 chapter 363A and section 121A.04. 171.7 (h) A charter school is subject to and must comply with the 171.8 Pupil Fair Dismissal Act, sections 121A.40 to 121A.56, and the 171.9 Minnesota Public School Fee Law, sections 123B.34 to 123B.39. 171.10 (i) A charter school is subject to the same financial 171.11 audits, audit procedures, and audit requirements as a district. 171.12 Audits must be conducted in compliance with generally accepted 171.13 governmental auditing standards, the Federal Single Audit Act, 171.14 if applicable, and section 6.65. A charter school is subject to 171.15 and must comply with sections 15.054; 118A.01; 118A.02; 118A.03; 171.16 118A.04; 118A.05; 118A.06; 123B.52, subdivision 5; 471.38; 171.17 471.391; 471.392; 471.425; 471.87; 471.88, subdivisions 1, 2, 3, 171.18 4, 5, 6, 12, 13, and 15; 471.881; and 471.89. The audit must 171.19 comply with the requirements of sections 123B.75 to 123B.83, 171.20 except to the extent deviations are necessary because of the 171.21 program at the school. Deviations must be approved by the 171.22 commissioner. The Department of Education, state auditor, or 171.23 legislative auditor may conduct financial, program, or 171.24 compliance audits. A charter school determined to be in 171.25 statutory operating debt under sections 123B.81 to 123B.83 must 171.26 submit a plan under section 123B.81, subdivision 4. 171.27 (j) A charter school is a district for the purposes of tort 171.28 liability under chapter 466. 171.29 (k) A charter school must comply with sections 13.32; 171.30 120A.22, subdivision 7; 121A.75; and 260B.171, subdivisions 3 171.31 and 5. 171.32 (l) A charter school is subject to the Pledge of Allegiance 171.33 requirement under section 121A.11, subdivision 3. 171.34 (m) Charter school board of director open meeting 171.35 requirements are governed according to subdivision 4. 171.36 Sec. 4. Minnesota Statutes 2004, section 124D.40, is 172.1 amended to read: 172.2 124D.40 [YOUTH WORKS GRANTS.] 172.3 Subdivision 1. [APPLICATION.] An eligible organization 172.4 interested in receiving a grant under sections 124D.39 to 172.5 124D.44 may prepare and submit an application to the commission 172.6an application that complies with section 124D.41. 172.7 Subd. 2. [GRANT AUTHORITY.] The commission must use any 172.8 state appropriation and any available federal funds, including 172.9 any grant received under federal law, to award grants to 172.10 establish programs for youth worksmeeting the requirements of172.11section 124D.41. At least one grant each must be available for 172.12 a metropolitan proposal, a rural proposal, and a statewide 172.13 proposal. If a portion of the suburban metropolitan area is not 172.14 included in the metropolitan grant proposal, the statewide grant 172.15 proposal must incorporate at least one suburban metropolitan 172.16 area. In awarding grants, the commission may select at least 172.17 one residential proposal and one nonresidential proposal,172.18provided the proposals meet or exceed the criteria in section172.19124D.41. 172.20 Sec. 5. Minnesota Statutes 2004, section 127A.41, 172.21 subdivision 8, is amended to read: 172.22 Subd. 8. [APPROPRIATION TRANSFERS.] (a) If a direct 172.23 appropriation from the general fund to the department for any 172.24 education aid or grant authorized in this chapter and chapters 172.25 122A, 123A, 123B, 124D, 125A, 126C, and 134, excluding 172.26 appropriations under sections 124D.135, 124D.16, 124D.20, 172.27124D.21,124D.22, 124D.52, 124D.531,124D.54,124D.55, and 172.28 124D.56, exceeds the amount required, the commissioner may 172.29 transfer the excess to any education aid or grant appropriation 172.30 that is insufficient. However, section 126C.20 applies to a 172.31 deficiency in the direct appropriation for general education 172.32 aid. Excess appropriations must be allocated proportionately 172.33 among aids or grants that have insufficient appropriations. The 172.34 commissioner of finance shall make the necessary transfers among 172.35 appropriations according to the determinations of the 172.36 commissioner. If the amount of the direct appropriation for the 173.1 aid or grant plus the amount transferred according to this 173.2 subdivision is insufficient, the commissioner shall prorate the 173.3 available amount among eligible districts. The state is not 173.4 obligated for any additional amounts. 173.5 (b) Transfers for aids paid under section 127A.45, 173.6 subdivisions 12, paragraph (a), 12a, paragraph (a), and 13, 173.7 shall be made during the fiscal year after the fiscal year of 173.8 the entitlement. Transfers for aids paid under section 127A.45, 173.9 subdivisions 11, 12, paragraph (b), and 12a, paragraph (b), 173.10 shall be made during the fiscal year of the appropriation. 173.11 Sec. 6. Minnesota Statutes 2004, section 127A.45, 173.12 subdivision 12, is amended to read: 173.13 Subd. 12. [PAYMENT PERCENTAGE FOR CERTAIN AIDS.] (a) One 173.14 hundred percent of the aid for the current fiscal year must be 173.15 paid for the following aids: reimbursement for enrollment 173.16 options transportation, according to sections 124D.03, 173.17 subdivision 8, 124D.09, subdivision 22, and 124D.10; school 173.18 lunch aid, according to section 124D.111; hearing impaired 173.19 support services aid, according to section 124D.57; and Indian 173.20 postsecondary preparation grants according to section 173.21124D.80124D.81. 173.22 (b) One hundred percent of the aid for the current fiscal 173.23 year, based on enrollment in the previous year, must be paid for 173.24 the first grade preparedness program according to section 173.25 124D.081.