1.1                          A bill for an act 
  1.2             relating to education; amending prekindergarten 
  1.3             through grade 12 education and early childhood and 
  1.4             family education budget provisions; appropriating 
  1.5             money; amending Minnesota Statutes 2002, sections 
  1.6             119A.46, subdivisions 2, 3, 8; 123A.05, subdivision 2; 
  1.7             124D.68, subdivision 9; 124D.69, subdivision 1; 
  1.8             125A.79, subdivisions 5, 7, by adding subdivisions; 
  1.9             Minnesota Statutes 2003 Supplement, sections 119A.46, 
  1.10            subdivision 1; 124D.095, subdivision 8; 124D.11, 
  1.11            subdivisions 1, 2; 125A.79, subdivision 1; 127A.47, 
  1.12            subdivisions 7, 8; Laws 2003, First Special Session 
  1.13            chapter 9, article 2, section 55, subdivision 16; Laws 
  1.14            2003, First Special Session chapter 9, article 6, 
  1.15            section 4; proposing coding for new law in Minnesota 
  1.16            Statutes, chapter 122A. 
  1.17  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.18     Section 1.  Minnesota Statutes 2003 Supplement, section 
  1.19  119A.46, subdivision 1, is amended to read: 
  1.20     Subdivision 1.  [DEFINITIONS.] (a) The definitions in 
  1.21  section 144.9501 and in this subdivision apply to this section. 
  1.22     (b) "Eligible organization" means a lead contractor, city, 
  1.23  board of health, community health department, community action 
  1.24  agency as defined in section 119A.374, or community development 
  1.25  corporation. 
  1.26     (c) "Commissioner" means the commissioner of education 
  1.27  health, or the commissioner of the Minnesota Housing Finance 
  1.28  Agency as authorized by section 462A.05, subdivision 15c. 
  1.29     Sec. 2.  Minnesota Statutes 2002, section 119A.46, 
  1.30  subdivision 2, is amended to read: 
  1.31     Subd. 2.  [GRANTS; ADMINISTRATION.] Within the limits of 
  2.1   the available appropriation, the commissioner must develop a 
  2.2   swab team services program which may make demonstration and 
  2.3   training grants to eligible organizations to train workers to 
  2.4   provide swab team services and swab team services for 
  2.5   residential property.  Grants may be awarded to nonprofit 
  2.6   organizations to provide technical assistance and training to 
  2.7   ensure quality and consistency within the statewide program.  
  2.8   Grants must be awarded to help ensure full-time employment to 
  2.9   workers providing swab team services and must be awarded for a 
  2.10  two-year period. 
  2.11     Grants awarded under this section must be made in 
  2.12  consultation with the commissioners commissioner of the 
  2.13  Department of health and the Housing Finance Agency, and 
  2.14  representatives of neighborhood groups from areas at high risk 
  2.15  for toxic lead exposure, a labor organization, the lead 
  2.16  coalition, community action agencies, and the legal aid 
  2.17  society.  The consulting team must review grant applications and 
  2.18  recommend awards to eligible organizations that meet 
  2.19  requirements for receiving a grant under this section. 
  2.20     Sec. 3.  Minnesota Statutes 2002, section 119A.46, 
  2.21  subdivision 3, is amended to read: 
  2.22     Subd. 3.  [APPLICANTS.] (a) Interested eligible 
  2.23  organizations may apply to the commissioner for grants under 
  2.24  this section.  Two or more eligible organizations may jointly 
  2.25  apply for a grant.  Priority shall be given to community action 
  2.26  agencies in greater Minnesota and to either community action 
  2.27  agencies or neighborhood based nonprofit organizations in cities 
  2.28  of the first class.  Of the total annual appropriation, 12.5 
  2.29  percent may be used for administrative purposes.  The 
  2.30  commissioner may deviate from this percentage if a grantee can 
  2.31  justify the need for a larger administrative allowance.  Of this 
  2.32  amount, up to five percent may be used by the commissioner for 
  2.33  state administrative purposes.  Applications must provide 
  2.34  information requested by the commissioner, including at least 
  2.35  the information required to assess the factors listed in 
  2.36  paragraph (d).  
  3.1      (b) The commissioner must coordinate with the commissioner 
  3.2   of health who must consult with boards of health to provide swab 
  3.3   team services for purposes of secondary prevention.  The 
  3.4   priority for swab teams created by grants to eligible 
  3.5   organizations under this section must be work assigned by the 
  3.6   commissioner of health, or by a board of health if so designated 
  3.7   by the commissioner of health, to provide secondary prevention 
  3.8   swab team services to fulfill the requirements of section 
  3.9   144.9504, subdivision 6, in response to a lead order.  Swab 
  3.10  teams assigned work under this section by the commissioner, that 
  3.11  are not engaged daily in fulfilling the requirements of section 
  3.12  144.9504, subdivision 6, must deliver swab team services in 
  3.13  response to elevated blood lead levels as defined in section 
  3.14  144.9501, subdivision 9, where lead orders were not issued, and 
  3.15  for purposes of primary prevention in census tracts known to be 
  3.16  in areas at high risk for toxic lead exposure as described in 
  3.17  section 144.9503, subdivision 2. 
  3.18     (c) Any additional money must be used for grants to 
  3.19  establish swab teams for primary prevention under section 
  3.20  144.9503, in census tracts in areas at high risk for toxic lead 
  3.21  exposure as determined under section 144.9503, subdivision 2.  
  3.22     (d) In evaluating grant applications, the commissioner must 
  3.23  consider the following criteria: 
  3.24     (1) the use of lead contractors and lead workers for 
  3.25  residential swab team services; 
  3.26     (2) the participation of neighborhood groups and 
  3.27  individuals, as swab team workers, in areas at high risk for 
  3.28  toxic lead exposure; 
  3.29     (3) plans for the provision of swab team services for 
  3.30  primary and secondary prevention as required under subdivision 
  3.31  4; 
  3.32     (4) plans for supervision, training, career development, 
  3.33  and postprogram placement of swab team members; 
  3.34     (5) plans for resident and property owner education on lead 
  3.35  safety; 
  3.36     (6) plans for distributing cleaning supplies to area 
  4.1   residents and educating residents and property owners on 
  4.2   cleaning techniques; 
  4.3      (7) sources of other funding and cost estimates for 
  4.4   training, lead inspections, swab team services, equipment, 
  4.5   monitoring, testing, and administration; 
  4.6      (8) measures of program effectiveness; 
  4.7      (9) coordination of program activities with other federal, 
  4.8   state, and local public health, job training, apprenticeship, 
  4.9   and housing renovation programs including programs under 
  4.10  sections 268.86 to 268.881; and 
  4.11     (10) prior experience in providing swab team services. 
  4.12     Sec. 4.  Minnesota Statutes 2002, section 119A.46, 
  4.13  subdivision 8, is amended to read: 
  4.14     Subd. 8.  [TESTING AND EVALUATION.] (a) Testing of the 
  4.15  environment is not necessary by swab teams whose work is 
  4.16  assigned by the commissioner of health or a designated board of 
  4.17  health under section 144.9504.  The commissioner of health or 
  4.18  designated board of health must share the analytical testing 
  4.19  data collected on each residence for purposes of secondary 
  4.20  prevention under section 144.9504 with the swab team workers in 
  4.21  order to provide constructive feedback on their work and to the 
  4.22  commissioner for the purposes set forth in paragraph (c). 
  4.23     (b) For purposes of primary prevention evaluation, the 
  4.24  following samples must be collected:  pretesting and posttesting 
  4.25  of one noncarpeted floor dust lead sample and a notation of the 
  4.26  extent and location of bare soil and of deteriorated lead-based 
  4.27  paint.  The analytical testing data collected on each residence 
  4.28  for purposes of primary prevention under section 144.9503 must 
  4.29  be shared with the swab team workers in order to provide 
  4.30  constructive feedback on their work and to the commissioner for 
  4.31  the purposes set forth in paragraph (c). 
  4.32     (c) The commissioner of health must establish a program in 
  4.33  cooperation with the commissioner to collect appropriate data as 
  4.34  required under paragraphs (a) and (b), in order to conduct an 
  4.35  ongoing evaluation of swab team services for primary and 
  4.36  secondary prevention.  Within the limits of available 
  5.1   appropriations, the commissioner of health must conduct or 
  5.2   contract with the commissioner, on up to 1,000 residences which 
  5.3   have received primary or secondary prevention swab team 
  5.4   services, a postremediation evaluation, on at least a quarterly 
  5.5   basis for a period of at least two years for each residence.  
  5.6   The evaluation must note the condition of the paint within the 
  5.7   residence, the extent of bare soil on the grounds, and collect 
  5.8   and analyze one noncarpeted floor dust lead sample.  The data 
  5.9   collected must be evaluated to determine the efficacy of 
  5.10  providing swab team services as a method of reducing lead 
  5.11  exposure in young children.  In evaluating this data, the 
  5.12  commissioner of health must consider city size, community 
  5.13  location, historic traffic flow, soil lead level of the property 
  5.14  by area or census tract, distance to industrial point sources 
  5.15  that emit lead, season of the year, age of the housing, age and 
  5.16  number of children living at the residence, the presence of pets 
  5.17  that move in and out of the residence, and other relevant 
  5.18  factors as the commissioner of health may determine.  This 
  5.19  evaluation of the swab team program may be paid from amounts 
  5.20  appropriated to the Department of Economic Security for 
  5.21  providing swab team services. 
  5.22     Sec. 5.  [122A.601] [STAFF DEVELOPMENT PROGRAM.] 
  5.23     Subdivision 1.  [STAFF DEVELOPMENT PURPOSE, COMMITTEE, 
  5.24  PLAN, ACTIVITIES, AND REPORT.] A school board must use the 
  5.25  revenue authorized in section 122A.61 for promoting and 
  5.26  sustaining results-based staff development programs under 
  5.27  section 120B.22, subdivision 2, or for staff development plans 
  5.28  under this section. 
  5.29     Subd. 2.  [STAFF DEVELOPMENT PURPOSE.] Each school district 
  5.30  must implement effective staff development that is aligned to 
  5.31  state and federal requirements, to significantly enhance the 
  5.32  quality of teaching and increase the achievement of all 
  5.33  students, including promoting academic excellence as well as 
  5.34  eliminating differences in achievement among groups of students, 
  5.35  such as eliminating achievement gaps.  Staff development must be 
  5.36  an integral part of each district and site improvement plan. 
  6.1      Subd. 3.  [STAFF DEVELOPMENT COMMITTEE.] The school board, 
  6.2   in collaboration with staff representatives, must establish a 
  6.3   district advisory staff development committee to develop a 
  6.4   results-driven district staff development plan for the 
  6.5   improvement of teaching and the increased achievement of all 
  6.6   students, including promoting academic excellence as well as 
  6.7   eliminating differences in achievement among groups of 
  6.8   students.  Each site in a district must establish a staff 
  6.9   development team.  The required site team is assisted by the 
  6.10  district committee in determining results-driven site staff 
  6.11  development plans consistent with the goals of the district 
  6.12  plan, and evaluating staff development efforts at the site 
  6.13  level.  Schools that are kindergarten through grade 12 sites may 
  6.14  function with a single committee that serves as both the site 
  6.15  team and the district committee.  A majority of the district 
  6.16  advisory staff development committee and the site staff 
  6.17  development team must be teachers representing various grade 
  6.18  levels, subject areas, special education, and personnel who work 
  6.19  with federal programs.  The district advisory committee must 
  6.20  also include nonteaching staff, parents, paraprofessionals, and 
  6.21  administrators. 
  6.22     Subd. 4.  [STAFF DEVELOPMENT PLAN.] The school district and 
  6.23  site staff development plans, which have been approved by the 
  6.24  school board, must be based on the results of an assessment of 
  6.25  local needs for professional development, and align with 
  6.26  applications for federal funding submitted by the school 
  6.27  district.  The results-driven staff development plan must foster 
  6.28  quality teaching and student achievement, and address issues 
  6.29  related to gaps in achievement among groups of students.  The 
  6.30  needs assessment shall be conducted with the involvement of 
  6.31  teachers and shall take into account the staff development 
  6.32  activities that need to be conducted in order to enhance the 
  6.33  content knowledge and teaching skills of instructional staff, 
  6.34  and improve the leadership skills of principals to support 
  6.35  instruction so that all students are provided the opportunity to 
  6.36  meet state and local academic standards and achievement gaps are 
  7.1   eliminated.  The district and site plans must include staff 
  7.2   development goals based on teaching and learning outcomes, the 
  7.3   staff development activities for achieving the goals, and 
  7.4   procedures at each site for annually assessing and evaluating 
  7.5   progress toward meeting the goals.  The plan must specify how 
  7.6   the district will ensure that all of its teachers are highly 
  7.7   qualified by 2005-2006 as required by federal law. 
  7.8      Subd. 5.  [EFFECTIVE STAFF DEVELOPMENT ACTIVITIES.] Staff 
  7.9   development activities that must be provided to educators are 
  7.10  those identified as effective professional development 
  7.11  consistent with applicable state and federal law, and may 
  7.12  include participation in curriculum development and curriculum 
  7.13  training programs, and activities that provide teachers and 
  7.14  other members of site-based management teams with appropriate 
  7.15  management and financial management skills.  Staff development 
  7.16  activities must be sustained over time, intensive, and classroom 
  7.17  focused; one-day or short-term workshops or conferences are not 
  7.18  acceptable unless they are part of a sustained, intensive 
  7.19  program.  Staff development activities must be based on research 
  7.20  that applies rigorous, systematic, and objective procedures to 
  7.21  obtain knowledge that is reliable and valid.  To the greatest 
  7.22  extent possible, staff development activities must incorporate 
  7.23  the following characteristics linked to effective professional 
  7.24  development:  (1) focuses on the intersection of content and 
  7.25  pedagogy; (2) includes opportunities for practice, research, and 
  7.26  reflection; (3) is embedded in educators' work; (4) reflects the 
  7.27  principles of adult learning theory in its content and format; 
  7.28  (5) includes and fosters elements of collegiality and 
  7.29  collaboration among principals and licensed and nonlicensed 
  7.30  staff who provide direct instruction; and (6) is aligned with 
  7.31  local and state content standards.  Courses sponsored by 
  7.32  accredited institutions of higher education must meet the 
  7.33  criteria for effective professional development specified in 
  7.34  applicable state and federal law and must qualify for credit. 
  7.35     Subd. 6.  [STAFF DEVELOPMENT REPORT.] By October 15 of each 
  7.36  year, the district and site staff development committees shall 
  8.1   write and submit a report of staff development progress and 
  8.2   expenditures for the previous school year, in the form and 
  8.3   manner determined by the commissioner.  The report must include 
  8.4   assessment and evaluation data indicating progress toward 
  8.5   district and site staff development goals based on teaching and 
  8.6   learning outcomes, including the percentage of teachers 
  8.7   receiving effective professional development.  The report must 
  8.8   also include the plan under subdivision 4 for the upcoming 
  8.9   school year.  The report must provide a breakdown of 
  8.10  expenditures for:  (1) curriculum development and curriculum 
  8.11  training programs; and (2) staff development training models, 
  8.12  workshops, and conferences, and the cost of teachers or 
  8.13  substitute teachers for staff development purposes.  Within each 
  8.14  of these categories, the report must also indicate whether the 
  8.15  expenditures were incurred at the district level or the school 
  8.16  site level, and whether the school site expenditures were made 
  8.17  possible by the grants to school sites that demonstrate 
  8.18  exemplary use of allocated staff development revenue.  These 
  8.19  expenditures are to be reported using the Uniform Financial and 
  8.20  Accounting and Reporting System.  The commissioner shall report 
  8.21  the staff development progress and expenditure data to the house 
  8.22  of representatives and senate committees having jurisdiction 
  8.23  over education by February 15 each year. 
  8.24     Sec. 6.  [122A.611] [RESERVED REVENUE FOR STAFF 
  8.25  DEVELOPMENT.] 
  8.26     Subdivision 1.  [STAFF DEVELOPMENT REVENUE.] A district is 
  8.27  required to reserve an amount equal to at least two percent of 
  8.28  the basic revenue under section 126C.10, subdivision 2, for 
  8.29  staff development for programs under section 120B.22, 
  8.30  subdivision 2, for district and site staff development planning 
  8.31  and implementation of effective staff development activities 
  8.32  consistent with section 122A.60, the cost of substitute teachers 
  8.33  for staff development purposes, preservice and in-service 
  8.34  education for special education professionals, 
  8.35  paraprofessionals, and other staff as defined in the district 
  8.36  plan, and other related costs for staff development efforts as 
  9.1   specified in the district plan.  The school district must use 
  9.2   staff development revenue to support activities referenced in 
  9.3   section 122A.60, subdivision 5.  Prior to the end of the 
  9.4   previous school year a district may annually waive the 
  9.5   requirement to reserve their basic revenues for the next school 
  9.6   year under this section by a majority vote of the licensed 
  9.7   teachers in the district and a majority vote of the school board 
  9.8   agreed to by a resolution to waive the requirement.  A district 
  9.9   in statutory operating debt is exempt from reserving basic 
  9.10  revenue according to this section but not exempt from developing 
  9.11  district plans, site plans, and the annual report.  Districts 
  9.12  may expend an additional amount of unreserved revenue for staff 
  9.13  development based on their needs.  With the exception of amounts 
  9.14  reserved for staff development from revenues allocated directly 
  9.15  to school sites, the board must initially allocate 50 percent of 
  9.16  the reserved revenue to each school site in the district on an 
  9.17  instructional staff per site basis, which must be retained by 
  9.18  the school site until used.  The board may retain up to 50 
  9.19  percent to be used for districtwide staff development efforts 
  9.20  and to make grants to instructional teams for exemplary methods. 
  9.21     The district staff development committee will determine the 
  9.22  procedures for grant application and develop the criteria for 
  9.23  selection as approved by the school board.  The grants must 
  9.24  align with the district and site goals that address the results 
  9.25  of the needs assessment.  
  9.26     The site staff development committee must demonstrate to 
  9.27  the school board the extent to which staff at the site have 
  9.28  addressed the staff development goals based on teaching and 
  9.29  learning outcomes.  The board may withhold a portion of initial 
  9.30  allocation of revenue if the staff development goals are not 
  9.31  being addressed or if the teaching and learning outcomes are not 
  9.32  being met. 
  9.33     Sec. 7.  Minnesota Statutes 2002, section 123A.05, 
  9.34  subdivision 2, is amended to read: 
  9.35     Subd. 2.  [RESERVE REVENUE.] Each district that is a member 
  9.36  of an area learning center must reserve revenue in an amount 
 10.1   equal to the sum of (1) at least 90 percent of the district 
 10.2   average general education revenue per pupil unit minus an amount 
 10.3   equal to the product of the formula allowance according to 
 10.4   section 126C.10, subdivision 2, times .0485, calculated without 
 10.5   basic skills revenue, transportation sparsity revenue, and the 
 10.6   transportation portion of the transition revenue adjustment, 
 10.7   times the number of pupil units attending an area learning 
 10.8   center program under this section, plus (2) the amount of basic 
 10.9   skills revenue generated by pupils attending the area learning 
 10.10  center.  The amount of reserved revenue under this subdivision 
 10.11  may only be spent on program costs associated with the area 
 10.12  learning center.  Compensatory revenue must be allocated 
 10.13  according to section 126C.15, subdivision 2.  
 10.14     Sec. 8.  Minnesota Statutes 2003 Supplement, section 
 10.15  124D.095, subdivision 8, is amended to read: 
 10.16     Subd. 8.  [FINANCIAL ARRANGEMENTS.] (a) For a student 
 10.17  enrolled in an on-line learning course, the department must 
 10.18  calculate average daily membership and make payments according 
 10.19  to this subdivision. 
 10.20     (b) The initial on-line learning average daily membership 
 10.21  equals 1/12 for each semester course or a proportionate amount 
 10.22  for courses of different lengths.  The adjusted on-line learning 
 10.23  average daily membership equals the initial on-line learning 
 10.24  average daily membership times .88. 
 10.25     (c) No on-line learning average daily membership shall be 
 10.26  generated if:  (1) the student does not complete the on-line 
 10.27  learning course, or (2) the student is enrolled in on-line 
 10.28  learning provided by the enrolling district and the student 
 10.29  was either enrolled in a Minnesota public school for the school 
 10.30  year before the school year in which the student first enrolled 
 10.31  in on-line learning, or the student is enrolled in an 
 10.32  instructional program in which at least 40 percent of the total 
 10.33  instructional time takes place in the school's facilities.  For 
 10.34  students enrolled in on-line learning according to clause (2), 
 10.35  the department shall calculate average daily membership 
 10.36  according to section 126C.05, subdivision 8. 
 11.1      (d) On-line learning average daily membership under this 
 11.2   subdivision for a student currently enrolled in a Minnesota 
 11.3   public school and who was enrolled in a Minnesota public school 
 11.4   for the school year before the school year in which the student 
 11.5   first enrolled in on-line learning shall be used only for 
 11.6   computing average daily membership according to section 126C.05, 
 11.7   subdivision 19, paragraph (a), clause (ii) (2), and for 
 11.8   computing on-line learning aid according to section 126C.24. 
 11.9      (e) On-line learning average daily membership under this 
 11.10  subdivision for students not included in paragraph (c) or (d) 
 11.11  shall be used only for computing average daily membership 
 11.12  according to section 126C.05, subdivision 19, paragraph (a), 
 11.13  clause (ii) (2), and for computing payments under paragraphs (f) 
 11.14  and (g). 
 11.15     (f) Subject to the limitations in this subdivision, the 
 11.16  department must pay an on-line learning provider an amount equal 
 11.17  to the product of the adjusted on-line learning average daily 
 11.18  membership for students under paragraph (e) times the student 
 11.19  grade level weighting under section 126C.05, subdivision 1, 
 11.20  times the formula allowance. 
 11.21     (g) The department must pay each on-line learning provider 
 11.22  100 percent of the amount in paragraph (f) within 45 days of 
 11.23  receiving final enrollment and course completion information 
 11.24  each quarter or semester. 
 11.25     Sec. 9.  Minnesota Statutes 2003 Supplement, section 
 11.26  124D.11, subdivision 1, is amended to read: 
 11.27     Subdivision 1.  [GENERAL EDUCATION REVENUE.] (a) General 
 11.28  education revenue must be paid to a charter school as though it 
 11.29  were a district.  The general education revenue for each 
 11.30  adjusted marginal cost pupil unit is the state average general 
 11.31  education revenue per pupil unit, plus the referendum 
 11.32  equalization aid allowance in the pupil's district of residence, 
 11.33  minus an amount equal to the product of the formula allowance 
 11.34  according to section 126C.10, subdivision 2, times .0485, 
 11.35  calculated without basic skills revenue, extended time revenue, 
 11.36  transition revenue, and transportation sparsity revenue, plus 
 12.1   basic skills revenue and transition revenue as though the school 
 12.2   were a school district.  The general education revenue for each 
 12.3   extended time marginal cost pupil unit equals $4,378. 
 12.4      (b) Notwithstanding paragraph (a), for charter schools in 
 12.5   the first year of operation, general education revenue shall be 
 12.6   computed using the number of adjusted pupil units in the current 
 12.7   fiscal year.  
 12.8      Sec. 10.  Minnesota Statutes 2003 Supplement, section 
 12.9   124D.11, subdivision 2, is amended to read: 
 12.10     Subd. 2.  [TRANSPORTATION REVENUE.] Transportation revenue 
 12.11  must be paid to a charter school that provides transportation 
 12.12  services according to section 124D.10, subdivision 16, according 
 12.13  to this subdivision.  Transportation aid shall equal 
 12.14  transportation revenue.  
 12.15     In addition to the revenue under subdivision 1, a charter 
 12.16  school providing transportation services must receive (1) 
 12.17  general education aid for each adjusted marginal cost pupil unit 
 12.18  equal to the sum of an amount equal to the product of the 
 12.19  formula allowance according to section 126C.10, subdivision 2, 
 12.20  times .0485, plus the transportation sparsity allowance for the 
 12.21  school district in which the charter school is located and (2) 
 12.22  general education aid for each extended time marginal cost pupil 
 12.23  unit equal to the product of $223 times the school's extended 
 12.24  time marginal cost pupil units.  
 12.25     Sec. 11.  Minnesota Statutes 2002, section 124D.68, 
 12.26  subdivision 9, is amended to read: 
 12.27     Subd. 9.  [ENROLLMENT VERIFICATION.] (a) For a pupil 
 12.28  attending an eligible program full time under subdivision 3, 
 12.29  paragraph (d), the department must pay 90 percent of the 
 12.30  district's average general education revenue less basic skills 
 12.31  revenue to the eligible program and ten percent of the 
 12.32  district's average general education revenue less basic skills 
 12.33  revenue to the contracting district within 30 days after the 
 12.34  eligible program verifies enrollment using the form provided by 
 12.35  the department.  For a pupil attending an eligible program part 
 12.36  time, revenue, excluding compensatory revenue, shall be reduced 
 13.1   proportionately, according to the amount of time the pupil 
 13.2   attends the program, and the payments to the eligible program 
 13.3   and the contracting district shall be reduced accordingly.  A 
 13.4   pupil for whom payment is made according to this section may not 
 13.5   be counted by any district for any purpose other than 
 13.6   computation of general education revenue.  If payment is made 
 13.7   for a pupil under this subdivision, a district shall not 
 13.8   reimburse a program under section 124D.69 for the same 
 13.9   pupil.  The basic skills revenue shall be paid generated by 
 13.10  pupils attending the eligible program according to section 
 13.11  126C.10, subdivision 4, shall be paid to the eligible program. 
 13.12     (b) The department must pay up to 100 percent of the 
 13.13  revenue to the eligible program if there is an agreement to that 
 13.14  effect between the school district and the eligible program. 
 13.15     (c) Notwithstanding paragraphs (a) and (b), for an eligible 
 13.16  program that provides chemical treatment services to students, 
 13.17  the department must pay 100 percent of the revenue to the 
 13.18  eligible program. 
 13.19     Sec. 12.  Minnesota Statutes 2002, section 124D.69, 
 13.20  subdivision 1, is amended to read: 
 13.21     Subdivision 1.  [AID.] If a pupil enrolls in an alternative 
 13.22  program, eligible under section 124D.68, subdivision 3, 
 13.23  paragraph (d), or subdivision 4, operated by a private 
 13.24  organization that has contracted with a school district to 
 13.25  provide educational services for eligible pupils under section 
 13.26  124D.68, subdivision 2, the district contracting with the 
 13.27  private organization must reimburse the provider an amount equal 
 13.28  to the sum of (1) at least 95 percent of the district's average 
 13.29  general education less basic skills revenue per pupil unit times 
 13.30  the number of pupil units for pupils attending the program. and 
 13.31  (2) the amount of basic skills revenue shall be paid generated 
 13.32  by pupils attending the program according to section 126C.10, 
 13.33  subdivision 4.  Compensatory revenue must be allocated according 
 13.34  to section 126C.15, subdivision 2.  For a pupil attending the 
 13.35  program part time, the revenue paid to the program, excluding 
 13.36  compensatory revenue, must be reduced proportionately, according 
 14.1   to the amount of time the pupil attends the program, and revenue 
 14.2   paid to the district shall be reduced accordingly.  Pupils for 
 14.3   whom a district provides reimbursement may not be counted by the 
 14.4   district for any purpose other than computation of general 
 14.5   education revenue.  If payment is made to a district or program 
 14.6   for a pupil under this section, the department must not make a 
 14.7   payment for the same pupil under section 124D.68, subdivision 9. 
 14.8      Sec. 13.  Minnesota Statutes 2003 Supplement, section 
 14.9   125A.79, subdivision 1, is amended to read: 
 14.10     Subdivision 1.  [DEFINITIONS.] For the purposes of this 
 14.11  section, the definitions in this subdivision apply. 
 14.12     (a) "Unreimbursed special education cost" means the sum of 
 14.13  the following: 
 14.14     (1) expenditures for teachers' salaries, contracted 
 14.15  services, supplies, equipment, and transportation services 
 14.16  eligible for revenue under section 125A.76; plus 
 14.17     (2) expenditures for tuition bills received under sections 
 14.18  125A.03 to 125A.24 and 125A.65 for services eligible for revenue 
 14.19  under section 125A.76, subdivision 2; minus 
 14.20     (3) revenue for teachers' salaries, contracted services, 
 14.21  supplies, and equipment under section 125A.76; minus 
 14.22     (4) tuition receipts under sections 125A.03 to 125A.24 and 
 14.23  125A.65 for services eligible for revenue under section 125A.76, 
 14.24  subdivision 2. 
 14.25     (b) "General revenue" means for fiscal year 1996, the sum 
 14.26  of the general education revenue according to section 126C.10, 
 14.27  subdivision 1, as adjusted according to section 127A.47, 
 14.28  subdivision 7, plus the total referendum revenue according to 
 14.29  section 126C.17, subdivision 4.  For fiscal years 1997 and 
 14.30  later, "General revenue" means the sum of the general education 
 14.31  revenue according to section 126C.10, subdivision 1, as adjusted 
 14.32  according to section 127A.47, subdivisions 7 and 8, plus the 
 14.33  total referendum revenue minus transportation sparsity revenue 
 14.34  minus total operating capital revenue.  
 14.35     (c) "Average daily membership" has the meaning given it in 
 14.36  section 126C.05. 
 15.1      (d) "Program growth factor" means 1.02 for fiscal year 
 15.2   2003, and 1.0 for fiscal year 2004 and later. 
 15.3      Sec. 14.  Minnesota Statutes 2002, section 125A.79, 
 15.4   subdivision 5, is amended to read: 
 15.5      Subd. 5.  [INITIAL EXCESS COST AID; FISCAL YEARS 2003 AND 
 15.6   2004.] For fiscal years 2002 2003 and later 2004, a district's 
 15.7   initial excess cost aid equals the greatest of: 
 15.8      (1) 75 percent of the difference between (i) the district's 
 15.9   unreimbursed special education cost and (ii) 4.36 percent of the 
 15.10  district's general revenue; 
 15.11     (2) 70 percent of the difference between (i) the increase 
 15.12  in the district's unreimbursed special education cost between 
 15.13  the base year as defined in section 125A.76, subdivision 1, and 
 15.14  the current year and (ii) 1.6 percent of the district's general 
 15.15  revenue; or 
 15.16     (3) zero. 
 15.17     Sec. 15.  Minnesota Statutes 2002, section 125A.79, is 
 15.18  amended by adding a subdivision to read: 
 15.19     Subd. 5a.  [INITIAL EXCESS COST AID.] For fiscal years 2005 
 15.20  and later, a district's initial excess cost aid equals the 
 15.21  greater of: 
 15.22     (1) 75 percent of the difference between (i) the district's 
 15.23  unreimbursed special education cost for the previous fiscal 
 15.24  year, and (ii) the sum of 4.36 percent of the district's general 
 15.25  revenue for the previous fiscal year and the district's 
 15.26  supplemental excess cost aid for the previous fiscal year; or 
 15.27     (2) zero. 
 15.28     Sec. 16.  Minnesota Statutes 2002, section 125A.79, is 
 15.29  amended by adding a subdivision to read: 
 15.30     Subd. 5b.  [SUPPLEMENTAL EXCESS COST AID.] (a) For fiscal 
 15.31  years 2005 and later, a district's supplemental excess cost aid 
 15.32  equals the greater of: 
 15.33     (1) 75 percent of the difference between (i) the increase 
 15.34  in the district's unreimbursed special education excess cost 
 15.35  between the previous fiscal year and the current fiscal year, 
 15.36  and (ii) $80 times the district's adjusted marginal cost pupil 
 16.1   units for the current fiscal year; or 
 16.2      (2) zero. 
 16.3      (b) The state total supplemental excess cost aid for any 
 16.4   fiscal year must not exceed $2,000,000.  If the state total 
 16.5   supplemental excess cost aid according to paragraph (a) exceeds 
 16.6   $2,000,000, the supplemental excess cost aid for each district 
 16.7   shall be reduced proportionately so that the state total equals 
 16.8   $2,000,000. 
 16.9      Sec. 17.  Minnesota Statutes 2002, section 125A.79, 
 16.10  subdivision 7, is amended to read: 
 16.11     Subd. 7.  [DISTRICT SPECIAL EDUCATION EXCESS COST AID.] (a) 
 16.12  A district's special education excess cost aid for fiscal year 
 16.13  2002 2003 and later 2004 equals the state total special 
 16.14  education excess cost aid times the ratio of the district's 
 16.15  initial excess cost aid to the state total initial excess cost 
 16.16  aid. 
 16.17     (b) A district's special education excess cost aid for 
 16.18  fiscal year 2005 and later equals the sum of: 
 16.19     (i) the product of the difference between the state total 
 16.20  special education excess cost aid and the state total 
 16.21  supplemental excess cost aid times the ratio of the district's 
 16.22  initial excess cost aid to the state total initial excess cost 
 16.23  aid; and 
 16.24     (ii) the district's supplemental excess cost aid according 
 16.25  to subdivision 5b. 
 16.26     Sec. 18.  Minnesota Statutes 2003 Supplement, section 
 16.27  127A.47, subdivision 7, is amended to read: 
 16.28     Subd. 7.  [ALTERNATIVE ATTENDANCE PROGRAMS.] The general 
 16.29  education aid for districts must be adjusted for each pupil 
 16.30  attending a nonresident district under sections 123A.05 to 
 16.31  123A.08, 124D.03, 124D.06, 124D.08, and 124D.68.  The 
 16.32  adjustments must be made according to this subdivision. 
 16.33     (a) General education aid paid to a resident district must 
 16.34  be reduced by an amount equal to the referendum equalization aid 
 16.35  attributable to the pupil in the resident district. 
 16.36     (b) General education aid paid to a district serving a 
 17.1   pupil in programs listed in this subdivision must be increased 
 17.2   by an amount equal to the referendum equalization aid 
 17.3   attributable to the pupil in the nonresident district.  
 17.4      (c) If the amount of the reduction to be made from the 
 17.5   general education aid of the resident district is greater than 
 17.6   the amount of general education aid otherwise due the district, 
 17.7   the excess reduction must be made from other state aids due the 
 17.8   district. 
 17.9      (d) The district of residence must pay tuition to a 
 17.10  district or an area learning center, operated according to 
 17.11  paragraph (e), providing special instruction and services to a 
 17.12  pupil with a disability, as defined in section 125A.02, or a 
 17.13  pupil, as defined in section 125A.51, who is enrolled in a 
 17.14  program listed in this subdivision.  The tuition must be equal 
 17.15  to (1) the actual cost of providing special instruction and 
 17.16  services to the pupil, including a proportionate amount for debt 
 17.17  service and for capital expenditure facilities and equipment, 
 17.18  and debt service but not including any amount for 
 17.19  transportation, minus (2) the amount of general education 
 17.20  revenue and special education aid but not including any amount 
 17.21  for transportation, attributable to that pupil, that is received 
 17.22  by the district providing special instruction and services. 
 17.23     (e) An area learning center operated by a service 
 17.24  cooperative, intermediate district, education district, or a 
 17.25  joint powers cooperative may elect through the action of the 
 17.26  constituent boards to charge the resident district tuition for 
 17.27  pupils rather than to have the general education revenue paid to 
 17.28  a fiscal agent school district.  Except as provided in paragraph 
 17.29  (d), the district of residence must pay tuition equal to at 
 17.30  least 90 percent of the district average general education 
 17.31  revenue per pupil unit minus an amount equal to the product of 
 17.32  the formula allowance according to section 126C.10, subdivision 
 17.33  2, times .0485, calculated without basic skills revenue and 
 17.34  transportation sparsity revenue, times the number of pupil units 
 17.35  for pupils attending the area learning center, plus the amount 
 17.36  of compensatory basic skills revenue generated by pupils 
 18.1   attending the area learning center. 
 18.2      Sec. 19.  Minnesota Statutes 2003 Supplement, section 
 18.3   127A.47, subdivision 8, is amended to read: 
 18.4      Subd. 8.  [CHARTER SCHOOLS.] (a) The general education aid 
 18.5   for districts must be adjusted for each pupil attending a 
 18.6   charter school under section 124D.10.  The adjustments must be 
 18.7   made according to this subdivision. 
 18.8      (b) General education aid paid to a district in which a 
 18.9   charter school not providing transportation according to section 
 18.10  124D.10, subdivision 16, is located must be increased by an 
 18.11  amount equal to the sum of: 
 18.12     (1) the product of:  (1) (i) the sum of an amount equal to 
 18.13  the product of the formula allowance according to section 
 18.14  126C.10, subdivision 2, times .0485, plus the transportation 
 18.15  sparsity allowance for the district; times (2) (ii) the adjusted 
 18.16  marginal cost pupil units attributable to the pupil, plus 
 18.17     (2) the product of $223 times the extended time marginal 
 18.18  cost pupil units attributable to the pupil.  
 18.19     Sec. 20.  Laws 2003, First Special Session chapter 9, 
 18.20  article 2, section 55, subdivision 16, is amended to read: 
 18.21     Subd. 16.  [ALTERNATIVE TEACHER COMPENSATION.] For 
 18.22  alternative teacher compensation established under Minnesota 
 18.23  Statutes, sections 122A.413 to 122A.415: 
 18.24       $3,700,000     .....     2004
 18.25       $3,700,000     .....     2005
 18.26     If the appropriations under this subdivision are 
 18.27  insufficient to fund all program participants, a participant may 
 18.28  receive less than the maximum per pupil amount available under 
 18.29  Minnesota Statutes, section 122A.415, subdivision 1.  A 
 18.30  qualifying district or site receiving alternative teacher 
 18.31  compensation funding under this subdivision may use the funding 
 18.32  it receives to leverage additional funds from a national program 
 18.33  for enhancing teacher professionalism. 
 18.34     Any balance in the first year does not cancel but is 
 18.35  available in the second year. 
 18.36     <b>[EFFECTIVE DATE.]</b> This section is effective the day 
 19.1   following final enactment. 
 19.2      Sec. 21.  Laws 2003, First Special Session chapter 9, 
 19.3   article 6, section 4, is amended to read: 
 19.4      Sec. 4.  [APPROPRIATIONS.] 
 19.5      Subdivision 1.  [DEPARTMENT OF EDUCATION.] The sums 
 19.6   indicated in this section are appropriated from the general fund 
 19.7   to the department of education for the fiscal years designated.  
 19.8      Subd. 2.  [BASIC SYSTEM SUPPORT.] For basic system support 
 19.9   grants under Minnesota Statutes, section 134.355: 
 19.10       $8,072,000 $8,312,000     .....     2004 
 19.11       $8,570,000     .....     2005 
 19.12     The 2004 appropriation includes $1,456,000 for 2003 and 
 19.13  $6,616,000 $6,856,000 for 2004. 
 19.14     The 2005 appropriation includes $1,654,000 $1,714,000 for 
 19.15  2004 and $6,916,000 $6,856,000 for 2005. 
 19.16     Subd. 3.  [REGIONAL LIBRARY TELECOMMUNICATIONS AID.] For 
 19.17  regional library telecommunications aid under Minnesota 
 19.18  Statutes, section 134.355: 
 19.19       $1,200,000 $960,000     .....     2004
 19.20       $1,200,000     .....     2005
 19.21     The 2004 appropriation includes $960,000 for 2004. 
 19.22     The 2005 appropriation includes $240,000 for 2004 and 
 19.23  $960,000 for 2005. 
 19.24     <b>[EFFECTIVE DATE.]</b> This section is effective the day 
 19.25  following final enactment.