1.1 	A bill for an act
1.2 	relating to education finance; delaying by one year the implementation of the state 
1.3 	determined tuition rates for special education services provided by intermediate 
1.4 	school districts and other cooperative providers of special education services;
1.5 	amending Minnesota Statutes 2005 Supplement, section 125A.11, subdivision 1.
1.6 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.7 	Section 1. Minnesota Statutes 2005 Supplement, section 125A.11, subdivision 1, 
1.8 	is amended to read:
1.9 		Subdivision 1.Nonresident tuition rate; other costs. (a) For fiscal year 2006, 
1.10 	for all school districts, when a school district provides instruction and services outside 
1.11 	the district of residence, board and lodging, and any tuition to be paid, shall be paid by 
1.12 	the district of residence. The tuition rate to be charged for any child with a disability, 
1.13 	excluding a pupil for whom tuition is calculated according to section 127A.47, subdivision 
1.14 	7, paragraph (d), must be the sum of (1) the actual cost of providing special instruction 
1.15 	and services to the child including a proportionate amount for special transportation 
1.16 	and unreimbursed building lease and debt service costs for facilities used primarily for 
1.17 	special education, plus (2) the amount of general education revenue and referendum aid 
1.18 	attributable to the pupil, minus (3) the amount of special education aid for children with a 
1.19 	disability received on behalf of that child, minus (4) if the pupil receives special instruction 
1.20 	and services outside the regular classroom for more than 60 percent of the school day, the 
1.21 	amount of general education revenue and referendum aid, excluding portions attributable 
1.22 	to district and school administration, district support services, operations and maintenance, 
1.23 	capital expenditures, and pupil transportation, attributable to that pupil for the portion of 
1.24 	time the pupil receives special instruction in and services outside of the regular classroom. 
1.25 	If the boards involved do not agree upon the tuition rate, either board may apply to the 
2.1 	commissioner to fix the rate. Notwithstanding chapter 14, the commissioner must then set 
2.2 	a date for a hearing or request a written statement from each board, giving each board 
2.3 	at least ten days' notice, and after the hearing or review of the written statements the 
2.4 	commissioner must make an order fixing the tuition rate, which is binding on both school 
2.5 	districts. General education revenue and referendum aid attributable to a pupil must be 
2.6 	calculated using the resident district's average general education and referendum revenue 
2.7 	per adjusted pupil unit.
2.8 	(b) For fiscal year 2007 and later, when a school district provides special instruction 
2.9 	and services for a pupil with a disability as defined in section 125A.02 outside the district 
2.10 	of residence, excluding a pupil for whom an adjustment to special education aid is 
2.11 	calculated according to section 127A.47, subdivision 7, paragraph (e), special education 
2.12 	aid paid to the resident district must be reduced by an amount equal to (1) the actual 
2.13 	cost of providing special instruction and services to the pupil, including a proportionate 
2.14 	amount for special transportation and unreimbursed building lease and debt service costs 
2.15 	for facilities used primarily for special education, plus (2) the amount of general education 
2.16 	revenue and referendum aid attributable to that pupil, minus (3) the amount of special 
2.17 	education aid for children with a disability received on behalf of that child, minus (4) if the 
2.18 	pupil receives special instruction and services outside the regular classroom for more than 
2.19 	60 percent of the school day, the amount of general education revenue and referendum 
2.20 	aid, excluding portions attributable to district and school administration, district support 
2.21 	services, operations and maintenance, capital expenditures, and pupil transportation, 
2.22 	attributable to that pupil for the portion of time the pupil receives special instruction in
2.23 	and services outside of the regular classroom. General education revenue and referendum 
2.24 	aid attributable to a pupil must be calculated using the resident district's average general 
2.25 	education revenue and referendum aid per adjusted pupil unit. Special education aid 
2.26 	paid to the district or cooperative providing special instruction and services for the pupil 
2.27 	must be increased by the amount of the reduction in the aid paid to the resident district. 
2.28 	Amounts paid to cooperatives under this subdivision and section 127A.47, subdivision 
2.29 	7, shall be recognized and reported as revenues and expenditures on the resident school 
2.30 	district's books of account under sections 123B.75 and 123B.76. If the resident district's 
2.31 	special education aid is insufficient to make the full adjustment, the remaining adjustment 
2.32 	shall be made to other state aid due to the district.
2.33 	(c) Notwithstanding paragraphs (a) and (b) and section 127A.47, subdivision 7, 
2.34 	paragraphs (d) and (e), a charter school where more than 30 percent of enrolled students 
2.35 	receive special education and related services, an intermediate district, or a special 
2.36 	education cooperative may apply to the commissioner for authority to charge the resident 
3.1 	district an additional amount to recover any remaining unreimbursed costs of serving 
3.2 	pupils with a disability. The application must include a description of the costs and the 
3.3 	calculations used to determine the unreimbursed portion to be charged to the resident 
3.4 	district. Amounts approved by the commissioner under this paragraph must be included 
3.5 	in the tuition billings or aid adjustments under paragraph (a) or (b), or section 127A.47, 
3.6 	subdivision 7, paragraph (d) or (e), as applicable.
3.7 	(d) Notwithstanding paragraphs (a) and (b) and section 127A.47, subdivision 7, 
3.8 	paragraphs (d) and (e), a group of districts jointly providing special education services 
3.9 	through an intermediate school district, service cooperative, special education cooperative, 
3.10 	or other joint powers agreement is not subject to the uniform tuition calculations or aid 
3.11 	adjustments for the jointly provided special education services but may instead continue 
3.12 	to bill the resident school districts for the actual nonreimbursed special education costs 
3.13 	for fiscal years 2006 and 2007.

3.14 	EFFECTIVE DATE. This section is effective the day following final enactment 
3.15 	for fiscal year 2006.