1.1                          A bill for an act 
  1.2             relating to education; providing for care and 
  1.3             treatment aid; modifying placements; providing for a 
  1.4             uniform billing system; providing for approval of 
  1.5             education programs; appropriating money; amending 
  1.6             Minnesota Statutes 1998, sections 125A.15; 125A.51; 
  1.7             125A.75, subdivision 3; 125A.79, by adding a 
  1.8             subdivision; 241.021, subdivision 1; and 245A.04, by 
  1.9             adding a subdivision; proposing coding for new law in 
  1.10            Minnesota Statutes, chapters 124D; and 125A. 
  1.11  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.12     Section 1.  [124D.701] [CARE AND TREATMENT INSTRUCTIONAL 
  1.13  AID.] 
  1.14     The state must pay each district the nonreimbursed 
  1.15  instructional expenses incurred when a nondisabled child has 
  1.16  been placed in a care and treatment facility according to 
  1.17  section 125A.51.  In order to receive reimbursement according to 
  1.18  this section, the facility must provide an education program, 
  1.19  which has been approved by the commissioner according to section 
  1.20  125A.515. 
  1.21     In a form and manner determined by the commissioner, the 
  1.22  district may bill the state the allowable expenses incurred in 
  1.23  providing the services minus the general education revenue of 
  1.24  the district for the child and any other aid earned on behalf of 
  1.25  the child.  In accordance with section 125A.80, the commissioner 
  1.26  shall determine allowable expenses and maximum reimbursable 
  1.27  rates for each type of service. 
  1.28     Sec. 2.  Minnesota Statutes 1998, section 125A.15, is 
  2.1   amended to read: 
  2.2      125A.15 [PLACEMENT IN ANOTHER DISTRICT; RESPONSIBILITY.] 
  2.3      The responsibility for special instruction and services for 
  2.4   a child with a disability temporarily placed in another district 
  2.5   for care and treatment shall be determined in the following 
  2.6   manner: 
  2.7      (a) The district of residence of a child shall be the 
  2.8   district in which the child's parent resides, if living, or the 
  2.9   child's guardian, or the district designated by the commissioner 
  2.10  if neither parent nor guardian is living within the state. 
  2.11     (b) When a child is temporarily placed for care and 
  2.12  treatment in a day program located in another district and the 
  2.13  child continues to live within the district of residence during 
  2.14  the care and treatment, the district of residence is responsible 
  2.15  for providing transportation to the care and treatment facility 
  2.16  and an appropriate educational program for the 
  2.17  child.  Transportation shall only be provided by the district 
  2.18  during regular operating hours of the district.  The district 
  2.19  may provide the educational program at a school within the 
  2.20  district of residence, at the child's residence, or in the 
  2.21  district in which the day treatment center is located by paying 
  2.22  tuition to that district. 
  2.23     (c) When a child is temporarily placed in a residential 
  2.24  program for care and treatment, the nonresident district in 
  2.25  which the child is placed is responsible for providing an 
  2.26  appropriate educational program for the child and necessary 
  2.27  transportation while the child is attending the educational 
  2.28  program; and must bill the district of the child's residence for 
  2.29  the actual cost of providing the program, as outlined in section 
  2.30  125A.11.  However, the board, lodging, and treatment costs 
  2.31  incurred in behalf of a child with a disability placed outside 
  2.32  of the school district of residence by the commissioner of human 
  2.33  services or the commissioner of corrections or their agents, for 
  2.34  reasons other than providing for the child's special educational 
  2.35  needs must not become the responsibility of either the district 
  2.36  providing the instruction or the district of the child's 
  3.1   residence.  For the purposes of this section, the state 
  3.2   correctional facilities operated on a fee-for-service basis are 
  3.3   considered to be residential programs for care and treatment. 
  3.4      (d) The district of residence shall pay tuition and other 
  3.5   program costs, not including transportation costs, to the 
  3.6   district providing the instruction and services.  The district 
  3.7   of residence may claim general education aid for the child as 
  3.8   provided by law.  Transportation costs must be paid by the 
  3.9   district responsible for providing the transportation and the 
  3.10  state must pay transportation aid to that district. 
  3.11     Sec. 3.  Minnesota Statutes 1998, section 125A.51, is 
  3.12  amended to read: 
  3.13     125A.51 [PLACEMENT OF CHILDREN WITHOUT DISABILITIES; 
  3.14  EDUCATION AND TRANSPORTATION.] 
  3.15     The responsibility for providing instruction and 
  3.16  transportation for a pupil without a disability who has a 
  3.17  short-term or temporary physical or emotional illness or 
  3.18  disability, as determined by the standards of the state board, 
  3.19  and who is temporarily placed for care and treatment for that 
  3.20  illness or disability, must be determined as provided in this 
  3.21  section.  
  3.22     (a) The school district of residence of the pupil is the 
  3.23  district in which the pupil's parent or guardian resides ~~or the~~ 
  3.24  ~~district designated by the commissioner if neither parent nor~~ 
  3.25  ~~guardian is living within the state and tuition has been denied~~. 
  3.26     (b) The legal residence of a child placed in a residential 
  3.27  or foster facility for care and treatment is the district in 
  3.28  which the child resides when: 
  3.29     (1) parental rights have been terminated by court order; 
  3.30     (2) the parent or guardian is not living within the state; 
  3.31     (3) no other district of residence can be established; or 
  3.32     (4) the parent or guardian having legal custody of the 
  3.33  child is an inmate of a Minnesota correctional facility or is a 
  3.34  resident of a halfway house under the supervision of the 
  3.35  commissioner of corrections. 
  3.36     ~~(b)~~ (c) Before the placement of a pupil for care and 
  4.1   treatment, the district of residence must be notified and 
  4.2   provided an opportunity to participate in the placement 
  4.3   decision.  When an immediate emergency placement is necessary 
  4.4   and time does not permit resident district participation in the 
  4.5   placement decision, the district in which the pupil is 
  4.6   temporarily placed, if different from the district of residence, 
  4.7   must notify the district of residence of the emergency placement 
  4.8   within 15 days of the placement.  
  4.9      ~~(c)~~ (d) When a pupil without a disability is temporarily 
  4.10  placed for care and treatment in a day program and the pupil 
  4.11  continues to live within the district of residence during the 
  4.12  care and treatment, the district of residence must provide 
  4.13  instruction and necessary transportation to the treatment 
  4.14  facility for the pupil.  Transportation shall only be provided 
  4.15  by the district during regular operating hours of the district. 
  4.16  The district may provide the instruction at a school within the 
  4.17  district of residence, at the pupil's residence, or in the case 
  4.18  of a placement outside of the resident district, in the district 
  4.19  in which the day treatment program is located by paying tuition 
  4.20  to that district.  The district of placement may contract with a 
  4.21  facility to provide instruction by teachers licensed by the 
  4.22  state board of teaching.  
  4.23     ~~(d)~~ (e) When a pupil without a disability is temporarily 
  4.24  placed in a residential program for care and treatment, the 
  4.25  district in which the pupil is placed must provide instruction 
  4.26  for the pupil and necessary transportation while the pupil is 
  4.27  receiving instruction, and in the case of a placement outside of 
  4.28  the district of residence, the nonresident district must bill 
  4.29  the district of residence for the actual cost of providing the 
  4.30  instruction for the regular school year and for summer school, 
  4.31  excluding transportation costs.  When a pupil without a 
  4.32  disability is temporarily placed in a residential program 
  4.33  outside the district of residence, the administrator of the 
  4.34  court placing the pupil must send timely written notice of the 
  4.35  placement to the district of residence.  The district of 
  4.36  placement may contract with a residential facility to provide 
  5.1   instruction by teachers licensed by the state board of teaching. 
  5.2   For purposes of this section, the state correctional facilities 
  5.3   operated on a fee-for-service basis are considered to be 
  5.4   residential programs for care and treatment. 
  5.5      ~~(e)~~ (f) The district of residence must include the pupil in 
  5.6   its residence count of pupil units and pay tuition as provided 
  5.7   in section 123A.488 to the district providing the instruction.  
  5.8   Transportation costs must be paid by the district providing the 
  5.9   transportation and the state must pay transportation aid to that 
  5.10  district.  For purposes of computing state transportation aid, 
  5.11  pupils governed by this subdivision must be included in the 
  5.12  disabled transportation category.  
  5.13     Sec. 4.  [125A.515] [PLACEMENT OF CHILDREN WITHOUT 
  5.14  DISABILITIES; APPROVAL OF EDUCATION PROGRAM.] 
  5.15     The commissioner shall approve education programs in care 
  5.16  and treatment facilities for placement of children without 
  5.17  disabilities, including detention centers, before being licensed 
  5.18  by the department of human services or the department of 
  5.19  corrections.  The commissioner shall adopt standards to approve 
  5.20  the education programs. 
  5.21     Sec. 5.  Minnesota Statutes 1998, section 125A.75, 
  5.22  subdivision 3, is amended to read: 
  5.23     Subd. 3.  [FULL STATE PAYMENT.] The state must pay each 
  5.24  district the actual cost incurred in providing instruction and 
  5.25  services for a child ~~with a disability~~ whose district of 
  5.26  residence has been determined by section 125A.17 or 125A.51, 
  5.27  paragraph (b), and who is temporarily placed in a state 
  5.28  institution ~~or~~, a licensed residential facility, or foster 
  5.29  facility for care and treatment.  ~~This section does not apply to~~ 
  5.30  ~~a child placed in a foster home or a foster group home.~~  The 
  5.31  regular education program at the facility must be an approved 
  5.32  program according to section 125A.515. 
  5.33     Upon following the procedure specified by the commissioner, 
  5.34  the district may bill the state the actual cost incurred in 
  5.35  providing the services including transportation costs and a 
  5.36  proportionate amount of capital expenditures and debt service, 
  6.1   minus the amount of the basic revenue, as defined in section 
  6.2   126C.10, subdivision 2, of the district for the child and the 
  6.3   special education aid, transportation aid, and any other aid 
  6.4   earned on behalf of the child.  The limit in subdivision 2 
  6.5   applies to aid paid pursuant to this subdivision.  
  6.6      To the extent possible, the commissioner shall obtain 
  6.7   reimbursement from another state for the cost of serving any 
  6.8   child whose parent or guardian resides in that state.  The 
  6.9   commissioner may contract with the appropriate authorities of 
  6.10  other states to effect reimbursement.  All money received from 
  6.11  other states must be paid to the state treasury and placed in 
  6.12  the general fund.  
  6.13     Sec. 6.  Minnesota Statutes 1998, section 125A.79, is 
  6.14  amended by adding a subdivision to read: 
  6.15     Subd. 5.  [OUT-OF-STATE TUITION.] For children who are 
  6.16  residents of the state, receive services under section 125A.76, 
  6.17  subdivisions 1 and 2, and are placed in a care and treatment 
  6.18  facility out of the state by court action, the resident school 
  6.19  district shall submit the balance of the tuition bills, minus 
  6.20  the amount of the basic revenue, as defined by section 126C.10, 
  6.21  subdivision 2, of the district for the child and the special 
  6.22  education aid, and any other aid earned on behalf of the child. 
  6.23     The commissioner shall establish a system of maximum 
  6.24  reimbursements for similar services that are provided by similar 
  6.25  agencies within the state. 
  6.26     Sec. 7.  [125A.80] [UNIFORM BILLING SYSTEM FOR THE 
  6.27  EDUCATION COSTS OF OUT-OF-HOME PLACED STUDENTS.] 
  6.28     The commissioner, in cooperation with the commissioners of 
  6.29  human services and corrections, shall develop and implement a 
  6.30  uniform billing system for school districts and other agencies, 
  6.31  including private providers, who provide the educational 
  6.32  services for students who are placed out of the home.  The 
  6.33  uniform billing system must: 
  6.34     (1) allow for the proper and timely billing to districts by 
  6.35  service providers with a minimum amount of district 
  6.36  administration; 
  7.1      (2) allow districts to bill the state for certain types of 
  7.2   special education and regular education services as provided by 
  7.3   law; 
  7.4      (3) provide flexibility for the types of services that are 
  7.5   provided for children placed out of the home, including day 
  7.6   treatment services; 
  7.7      (4) allow the commissioner to track the type, cost, and 
  7.8   quality of services provided for children placed out of the 
  7.9   home; 
  7.10     (5) conform existing special education and proposed regular 
  7.11  education billing procedures; 
  7.12     (6) provide a uniform reporting standard of per diem rates; 
  7.13     (7) determine allowable expenses and maximum reimbursement 
  7.14  rates for the state reimbursement of care and treatment services 
  7.15  according to section 124D.701; and 
  7.16     (8) provide a process for the district to appeal to the 
  7.17  commissioner tuition bills submitted to districts and to the 
  7.18  state. 
  7.19     Sec. 8.  Minnesota Statutes 1998, section 241.021, 
  7.20  subdivision 1, is amended to read: 
  7.21     Subdivision 1.  [SUPERVISION OVER CORRECTIONAL 
  7.22  INSTITUTIONS.] (1) The commissioner of corrections shall inspect 
  7.23  and license all correctional facilities throughout the state, 
  7.24  whether public or private, established and operated for the 
  7.25  detention and confinement of persons detained or confined 
  7.26  therein according to law except to the extent that they are 
  7.27  inspected or licensed by other state regulating agencies.  The 
  7.28  commissioner shall promulgate pursuant to chapter 14, rules 
  7.29  establishing minimum standards for these facilities with respect 
  7.30  to their management, operation, physical condition, and the 
  7.31  security, safety, health, treatment, and discipline of persons 
  7.32  detained or confined therein.  Commencing September 1, 1980, no 
  7.33  individual, corporation, partnership, voluntary association, or 
  7.34  other private organization legally responsible for the operation 
  7.35  of a correctional facility may operate the facility unless 
  7.36  licensed by the commissioner of corrections.  The commissioner 
  8.1   shall review the correctional facilities described in this 
  8.2   subdivision at least once every biennium, except as otherwise 
  8.3   provided herein, to determine compliance with the minimum 
  8.4   standards established pursuant to this subdivision.  The 
  8.5   commissioner shall grant a license to any facility found to 
  8.6   conform to minimum standards or to any facility which, in the 
  8.7   commissioner's judgment, is making satisfactory progress toward 
  8.8   substantial conformity and the interests and well-being of the 
  8.9   persons detained or confined therein are protected.  The 
  8.10  commissioner may grant licensure up to two years.  The 
  8.11  commissioner shall have access to the buildings, grounds, books, 
  8.12  records, staff, and to persons detained or confined in these 
  8.13  facilities.  The commissioner may require the officers in charge 
  8.14  of these facilities to furnish all information and statistics 
  8.15  the commissioner deems necessary, at a time and place designated 
  8.16  by the commissioner.  The commissioner may require that any or 
  8.17  all such information be provided through the department of 
  8.18  corrections detention information system.  The education program 
  8.19  offered in a correctional facility must be approved by the 
  8.20  commissioner of children, families, and learning before the 
  8.21  commissioner of corrections may grant a license to the facility. 
  8.22     (2) Any state agency which regulates, inspects, or licenses 
  8.23  certain aspects of correctional facilities shall, insofar as is 
  8.24  possible, ensure that the minimum standards it requires are 
  8.25  substantially the same as those required by other state agencies 
  8.26  which regulate, inspect, or license the same aspects of similar 
  8.27  types of correctional facilities, although at different 
  8.28  correctional facilities. 
  8.29     (3) Nothing in this section shall be construed to limit the 
  8.30  commissioner of corrections' authority to promulgate rules 
  8.31  establishing standards of eligibility for counties to receive 
  8.32  funds under sections 401.01 to 401.16, or to require counties to 
  8.33  comply with operating standards the commissioner establishes as 
  8.34  a condition precedent for counties to receive that funding. 
  8.35     (4) When the commissioner finds that any facility described 
  8.36  in clause (1), except foster care facilities for delinquent 
  9.1   children and youth as provided in subdivision 2, does not 
  9.2   substantially conform to the minimum standards established by 
  9.3   the commissioner and is not making satisfactory progress toward 
  9.4   substantial conformance, the commissioner shall promptly notify 
  9.5   the chief executive officer and the governing board of the 
  9.6   facility of the deficiencies and order that they be remedied 
  9.7   within a reasonable period of time.  The commissioner may by 
  9.8   written order restrict the use of any facility which does not 
  9.9   substantially conform to minimum standards to prohibit the 
  9.10  detention of any person therein for more than 72 hours at one 
  9.11  time.  When, after due notice and hearing, the commissioner 
  9.12  finds that any facility described in this subdivision, except 
  9.13  county jails and lockups as provided in sections 641.26, 642.10, 
  9.14  and 642.11, does not conform to minimum standards, or is not 
  9.15  making satisfactory progress toward substantial compliance 
  9.16  therewith, the commissioner may issue an order revoking the 
  9.17  license of that facility.  After revocation of its license, that 
  9.18  facility shall not be used until its license is renewed.  When 
  9.19  the commissioner is satisfied that satisfactory progress towards 
  9.20  substantial compliance with minimum standard is being made, the 
  9.21  commissioner may, at the request of the appropriate officials of 
  9.22  the affected facility supported by a written schedule for 
  9.23  compliance, grant an extension of time for a period not to 
  9.24  exceed one year. 
  9.25     (5) As used in this subdivision, "correctional facility" 
  9.26  means any facility, including a group home, having a residential 
  9.27  component, the primary purpose of which is to serve persons 
  9.28  placed therein by a court, court services department, parole 
  9.29  authority, or other correctional agency having dispositional 
  9.30  power over persons charged with, convicted, or adjudicated to be 
  9.31  guilty or delinquent. 
  9.32     Sec. 9.  Minnesota Statutes 1998, section 245A.04, is 
  9.33  amended by adding a subdivision to read: 
  9.34     Subd. 11.  [EDUCATION PROGRAM; ADDITIONAL REQUIREMENT.] The 
  9.35  education program offered in a residential or nonresidential 
  9.36  program, except for child care, foster care, or services for 
 10.1   adults, must be approved by the commissioner of children, 
 10.2   families, and learning before the commissioner of human services 
 10.3   may grant a license to the program. 
 10.4      Sec. 10.  [DESIGN AND IMPLEMENTATION OF UNIFORM BILLING 
 10.5   SYSTEM.] 
 10.6      The commissioner of children, families, and learning, in 
 10.7   cooperation with the commissioners of human services and 
 10.8   corrections, shall design a uniform billing system according to 
 10.9   Minnesota Statutes, section 125A.80.  In designing a system, the 
 10.10  commissioner shall seek the input from the appropriate users of 
 10.11  the billing system.  
 10.12     The commissioner shall implement a uniform billing system 
 10.13  for education services for children placed out of the home, 
 10.14  according to Minnesota Statutes, section 125A.80, by July 1, 
 10.15  2000.  The commissioner shall provide training to school 
 10.16  districts on the uniform billing system. 
 10.17     Sec. 11.  [RECOMMENDATIONS FOR A SYSTEM TO APPROVE 
 10.18  EDUCATION PROGRAMS SERVING CHILDREN AT CARE AND TREATMENT 
 10.19  FACILITIES.] 
 10.20     Subdivision 1.  [WORKING GROUP MEMBERSHIP.] The 
 10.21  commissioner of children, families, and learning shall convene a 
 10.22  working group to make recommendations on a system to approve 
 10.23  education programs serving children at care and treatment 
 10.24  facilities.  The working group shall be chaired by a 
 10.25  representative of the department of children, families, and 
 10.26  learning and, at a minimum, must include representatives from 
 10.27  each of the following organizations:  the department of human 
 10.28  services, the department of corrections, the Minnesota school 
 10.29  boards association, the Minnesota association of school 
 10.30  administrators, Education Minnesota, association of Minnesota 
 10.31  counties, Minnesota county attorney association, conference of 
 10.32  chief judges, and the Minnesota council of child caring agencies.
 10.33     By February 1, 2000, the commissioner shall submit the 
 10.34  group's recommendations to the education committees of the 
 10.35  legislature. 
 10.36     Subd. 2.  [RECOMMENDATIONS TO THE COMMISSIONER OF CHILDREN, 
 11.1   FAMILIES, AND LEARNING.] The working group shall consider the 
 11.2   following in making recommendations to the department of 
 11.3   children, families, and learning to implement a system to 
 11.4   approve education programs serving children at care and 
 11.5   treatment facilities: 
 11.6      (1) minimal education standards consistent with state 
 11.7   graduation requirements that meet the individual needs of 
 11.8   children ages 6 to 21 served at care and treatment facilities, 
 11.9   unless the child has withdrawn from school or has received a 
 11.10  diploma; 
 11.11     (2) minimal average daily hour of education instruction; 
 11.12     (3) that state-approved education programs will employ or 
 11.13  contract with licensed teachers or community experts as defined 
 11.14  by the state board of teaching; 
 11.15     (4) how the education program will work together with the 
 11.16  district that the facility is located in and the district of 
 11.17  residence to provide or contract for education services when 
 11.18  possible; 
 11.19     (5) uniform educational assessment and screening procedures 
 11.20  to be used at the care and treatment facility before the child's 
 11.21  educational program can begin; 
 11.22     (6) that educational plans, based on the assessment of the 
 11.23  child, will be used to determine the educational services for 
 11.24  the child placed in a care and treatment facility; 
 11.25     (7) appropriate and consistent educational services to be 
 11.26  implemented related to the type of facility and placement of the 
 11.27  child; 
 11.28     (8) the level of monitoring and enforcement by the 
 11.29  department of children, families, and learning to ensure the 
 11.30  necessary oversight of the educational program; 
 11.31     (9) uniform procedures for transferring student records, 
 11.32  which are consistent with state and federal data practices laws; 
 11.33     (10) how the educational needs of the child will be 
 11.34  considered in the placement of the child; and 
 11.35     (11) appropriate timelines for the department of children, 
 11.36  families, and learning to approve initial and continuing 
 12.1   education programs. 
 12.2      Sec. 12.  [APPROPRIATIONS.] 
 12.3      Subdivision 1.  [DEPARTMENT OF CHILDREN, FAMILIES, AND 
 12.4   LEARNING.] The sums indicated in this section are appropriated 
 12.5   from the general fund to the department of children, families, 
 12.6   and learning for the fiscal years designated. 
 12.7      Subd. 2.  [CARE AND TREATMENT INSTRUCTIONAL AID.] For care 
 12.8   and treatment aid according to section 124D.701: 
 12.9        $.......     .....     2001
 12.10     If the amount appropriated under this section is 
 12.11  insufficient to cover all of the expenses submitted by 
 12.12  districts, the commissioner shall prorate the aid to districts 
 12.13  based on the expenses submitted by districts. 
 12.14     Subd. 3.  [ADDITIONAL FULL STATE AID.] For additional full 
 12.15  state aid to include children without disabilities according to 
 12.16  section 125A.75, subdivision 3: 
 12.17       $.......     .....     2000
 12.18       $.......     .....     2001
 12.19     Subd. 4.  [OUT-OF-STATE TUITION.] For out-of-state tuition 
 12.20  according to section 125A.79: 
 12.21       $.......     .....     2001
 12.22     If the amount appropriated under this section is 
 12.23  insufficient to cover all of the expenses submitted by 
 12.24  districts, the commissioner shall prorate the aid to districts 
 12.25  based on the expenses submitted by districts. 
 12.26     Subd. 5.  [UNIFORM BILLING SYSTEM; TECHNICAL 
 12.27  ASSISTANCE.] For developing and implementing an effective and 
 12.28  efficient uniform billing system for the educational costs of 
 12.29  students placed out of the home: 
 12.30       $.......     .....     2000
 12.31     Subd. 6.  [STATE APPROVAL OF EDUCATION PROGRAMS AT CARE AND 
 12.32  TREATMENT FACILITIES.] For developing and implementing a system 
 12.33  to approve education programs at care and treatment facilities: 
 12.34       $.......     .....     2000