1.1 	A bill for an act
1.2 	relating to education; providing for prekindergarten
1.3 	through grade 12 education; including special
1.4 	education, early childhood, family, and adult
1.5 	education; child care; prevention policy;
1.6 	appropriating money; amending Minnesota Statutes 2004,
1.7 	sections 13.32, subdivision 2; 119A.46, subdivisions
1.8 	1, 2, 3, 8; 119B.09, subdivision 1; 119B.13, by adding
1.9 	a subdivision; 121A.17, subdivisions 1, 3, 5, by
1.10 	adding a subdivision; 121A.19; 122A.413; 122A.60,
1.11 	subdivision 1, by adding subdivisions; 122A.61,
1.12 	subdivision 1; 124D.135, subdivision 1; 124D.15,
1.13 	subdivisions 1, 3, 5, 10, 12, by adding subdivisions;
1.14 	124D.16, subdivision 2; 124D.20, subdivisions 3, 5;
1.15 	124D.22, subdivision 3; 124D.531, subdivisions 1, 4;
1.16 	125A.76, subdivisions 1, 4; 125A.79, subdivisions 1,
1.17 	6; 126C.10, subdivision 2; proposing coding for new
1.18 	law in Minnesota Statutes, chapters 121A; 122A; 124D;
1.19 	127A; repealing Minnesota Statutes 2004, sections
1.20 	122A.414; 122A.415; 124D.15, subdivisions 2, 4, 6, 7,
1.21 	8, 9, 11, 13; 124D.16, subdivisions 1, 4.
1.22 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.23 	ARTICLE 1
1.24 	PREKINDERGARTEN THROUGH GRADE 12 EDUCATION

1.25 	Section 1. Minnesota Statutes 2004, section 122A.413, is
1.26 	amended to read:
1.27 	122A.413 EDUCATIONAL IMPROVEMENT PLAN.
1.28 		Subdivision 1.Qualifying plan. A district may develop
1.29 	an educational improvement plan for the purpose of qualifying
1.30 	for ~~alternative teacher compensation aid~~ the professional
1.31 	compensation initiative under ~~sections 122A.414 and~~
1.32 	~~122A.415~~ section 122A.4142.  The plan must include measures for
1.33 	improving school district, school site, teacher, and individual
2.1 	student performance.
2.2 		Subd. 2.Plan components. The educational improvement
2.3 	plan must be approved by the school board and have at least
2.4 	these elements:
2.5 	(1) assessment and evaluation tools to measure student
2.6 	performance and progress;
2.7 	(2) performance goals and benchmarks for improvement;
2.8 	(3) measures of student attendance and completion rates;
2.9 	(4) a rigorous professional development system, consistent
2.10 	with section 122A.60,that is aligned with educational
2.11 	improvement, designed to achieve teaching quality improvement,
2.12 	and consistent with clearly defined research-based standards;
2.13 	(5) measures of student, family, and community involvement
2.14 	and satisfaction;
2.15 	(6) a data system about students and their academic
2.16 	progress that provides parents and the public with
2.17 	understandable information; ~~and~~ 
2.18 	(7) a teacher induction and mentoring program for
2.19 	probationary teachers that provides continuous learning and
2.20 	sustained teacher support~~.  The process for developing the plan~~
2.21 	~~must involve district teachers~~ ; and 
2.22 	(8) substantial teacher participation in developing the
2.23 	plan, including teachers selected by the exclusive
2.24 	representative of the teachers.
2.25 		Subd. 3.School site accountability. A district that
2.26 	develops a plan under subdivisions 1 and 2 must ensure that each
2.27 	school site develops a board-approved educational improvement
2.28 	plan that is aligned with the district educational improvement
2.29 	plan under subdivision 2 and developed with teacher
2.30 	participation consistent with subdivision 2, clause (8).  While
2.31 	a site plan must be consistent with the district educational
2.32 	improvement plan, it may establish performance goals and
2.33 	benchmarks that meet or exceed those of the district. ~~The~~
2.34 	~~process for developing the plan must involve site teachers.~~

2.35 	Sec. 2. [122A.4142] PROFESSIONAL COMPENSATION
2.36 	INITIATIVE.
3.1 		Subdivision 1.Professional compensation agreement. A
3.2 	school district and the exclusive representative of the teachers
3.3 	may adopt, by agreement, professional compensation under
3.4 	subdivision 2 to provide incentives to attract and retain
3.5 	high-quality teachers and instructional staff, encourage
3.6 	high-quality teachers to accept difficult assignments, encourage
3.7 	teachers to improve their knowledge and skills, and support
3.8 	teachers' roles in improving students' educational achievement.
3.9 		Subd. 2.Eligibility. (a) To be eligible to participate
3.10 	in the professional compensation initiative in fiscal year 2006,
3.11 	a school district must comply with the conditions stated in
3.12 	paragraph (b) or with the following conditions:
3.13 	(1) submit to the department a letter of intent executed by
3.14 	the school district and the exclusive representative of the
3.15 	teachers to complete planning for and satisfy the conditions for
3.16 	participation in fiscal year 2007 and later;
3.17 	(2) reserve at least two percent of basic revenue for staff
3.18 	development purposes consistent with sections 122A.60 and
3.19 	122A.61, subdivision 1; and 
3.20 	(3) commit to spending at least the additional one percent
3.21 	of basic revenue available through participation in the
3.22 	professional compensation initiative for staff development
3.23 	supporting the development of a district educational improvement
3.24 	plan and site-based educational improvement plan under section
3.25 	122A.413 and for developing the professional compensation
3.26 	agreement under this section.
3.27 	(b) To be eligible to participate in the professional
3.28 	compensation initiative in fiscal year 2007 and later, a school
3.29 	district must submit to the department:
3.30 	(1) a districtwide or site-based educational improvement
3.31 	plan as described in section 122A.413; and 
3.32 	(2) an executed collective bargaining agreement that
3.33 	contains at least the following elements:
3.34 	(i) a description of the conditions or actions necessary
3.35 	for career advancement and additional compensation;
3.36 	(ii) compensation provisions that base at least 60 percent
4.1 	of any increase in compensation on performance and not on years
4.2 	of service or the attainment of additional education or
4.3 	training;
4.4 	(iii) career advancement options for teachers retaining
4.5 	primary roles in student instruction, including staff
4.6 	development activities, and for other members of the bargaining
4.7 	unit;
4.8 	(iv) incentives for teachers' continuous improvement in
4.9 	content knowledge, pedagogy, and use of best practices;
4.10 	(v) an objective evaluation program, including classroom or
4.11 	performance observation, that is aligned with the district's or
4.12 	site's educational improvement plan, and is a component of
4.13 	determining performance;
4.14 	(vi) provisions preventing any teacher's compensation from
4.15 	being reduced as a result of implementing professional
4.16 	compensation for teachers;
4.17 	(vii) provisions enabling any teacher in the district, if
4.18 	professional compensation for teachers is applied districtwide,
4.19 	or at a site, if professional compensation for teachers applies
4.20 	only to a site, to participate in professional compensation for
4.21 	teachers without limitations by quota or other restrictions;
4.22 	(viii) provisions encouraging collaboration among teachers
4.23 	rather than competition; and 
4.24 	(ix) provisions for participation by all teachers in a
4.25 	district, all teachers at a site, or at least 25 percent of the
4.26 	teachers in a district.
4.27 	(c) An agreement may contain different compensation
4.28 	provisions for separate classifications of employees.
4.29 		Subd. 3.Commissioner approval. (a) Before concluding a
4.30 	collective bargaining agreement, a district may submit a
4.31 	proposed agreement and educational improvement plan for review,
4.32 	comment, and preliminary approval by the commissioner.  If the
4.33 	plan and agreement are executed in the same form as
4.34 	preliminarily approved by the commissioner, the plan and
4.35 	agreement must be approved without further review.
4.36 	(b) The application to the commissioner must contain a
5.1 	formally adopted collective bargaining agreement, memorandum of
5.2 	understanding, or other binding agreement that implements the
5.3 	professional compensation initiative consistent with this
5.4 	section.
5.5 	(c) The commissioner's approval must be based on the
5.6 	requirements established in subdivision 2.  If the commissioner
5.7 	does not approve an application, the notice to the school
5.8 	district must provide details regarding the commissioner's
5.9 	reason for rejecting the application.
5.10 		Subd. 4.Professional compensation revenue. (a)
5.11 	Professional compensation revenue for a school district that
5.12 	qualifies for participation under subdivision 2, paragraph (a),
5.13 	equals one percent of basic revenue, under section 126C.10,
5.14 	subdivision 2.
5.15 	(b) For participation in fiscal year 2007 and later, the
5.16 	school district's application must be approved by the
5.17 	commissioner under subdivision 3.
5.18 	(c) Professional compensation revenue for a qualifying
5.19 	school district, site, or portion of a district or school site
5.20 	that qualifies for participation under subdivision 2, paragraph
5.21 	(b), is as follows:
5.22 	(1) for a school district in which the school board and the
5.23 	exclusive representative of the teachers agree to place all
5.24 	teachers in the district in the professional compensation for
5.25 	teachers initiative, revenue equals five percent of the
5.26 	district's basic revenue for the fiscal year; or if a site only
5.27 	is participating, the portion of five percent attributable to
5.28 	the site's number of pupils enrolled on October 1 of the
5.29 	previous fiscal year; or 
5.30 	(2) for a district in which the school board and the
5.31 	exclusive representative of the teachers agree that at least 25
5.32 	percent of the district's licensed teachers will participate in
5.33 	the professional compensation initiative revenue equals five
5.34 	percent of basic revenue for the fiscal year multiplied by the
5.35 	percentage of participating teachers.
5.36 		Subd. 5.Percentage of teachers. For purposes of
6.1 	subdivision 4, the percentage of teachers participating in the
6.2 	professional compensation initiative equals the ratio of the
6.3 	number of licensed teachers who are working at least 60 percent
6.4 	of a full-time teacher's hours and agree to participate in the
6.5 	initiative to the total number of licensed teachers who are
6.6 	working at least 60 percent of a full-time teacher's hours.
6.7 		Subd. 6.Revenue timing. Districts or sites with
6.8 	approved applications must receive professional compensation
6.9 	revenue for each school year that the district or site
6.10 	participates in the initiative and is in compliance with the
6.11 	conditions for participation.
6.12 		Subd. 7.Basic revenue. A school district that qualifies
6.13 	for participation in the professional compensation initiative
6.14 	under subdivision 2, paragraph (b), may use the two percent of
6.15 	basic revenue that would otherwise be reserved under section
6.16 	122A.61 for compliance with the professional compensation
6.17 	agreement under this section.  If fewer than all of the licensed
6.18 	teachers in the district participate in the initiative, the
6.19 	amount of the two percent that may be used for the initiative
6.20 	equals the two percent multiplied by the percentage of licensed
6.21 	teachers participating in the initiative.
6.22 		Subd. 8.Participation. If a district and bargaining
6.23 	unit do not participate in the professional compensation
6.24 	initiatives in fiscal year 2006, they may elect to participate
6.25 	in subsequent years.  The requirements for participation in the
6.26 	first year are the requirements described for fiscal year 2006.
6.27 	
EFFECTIVE DATE. This section is effective for fiscal year
6.28 	2006 and thereafter.

6.29 	Sec. 3. [122A.4143] CLOSED CONTRACT.
6.30 	A district and the exclusive representative of the teachers
6.31 	may agree jointly to reopen a collective bargaining agreement
6.32 	for the sole purpose of entering into a professional
6.33 	compensation system consistent with section 122A.4142 and an
6.34 	educational improvement plan under section 122A.413.

6.35 	EFFECTIVE DATE. This section is effective for fiscal year
6.36 	2006 and later.

7.1 	Sec. 4. [122A.4144] PROFESSIONAL COMPENSATION PILOT SITE
7.2 	AID.
7.3 		Subdivision 1.Aid amount. (a) A school district that
7.4 	received revenue under Minnesota Statutes 2004, section
7.5 	122A.415, or meets the eligibility conditions of section
7.6 	122A.4142, subdivision 1, paragraph (b), and submits an
7.7 	application approved by the commissioner is eligible for
7.8 	professional compensation pilot site aid.  The commissioner must
7.9 	consider only applications submitted jointly by a school
7.10 	district and the exclusive representative of the teachers for
7.11 	participation in the program.  The application must contain a
7.12 	formally adopted collective bargaining agreement, memorandum of
7.13 	understanding, or other binding agreement that implements a
7.14 	professional compensation pay system consistent with the
7.15 	eligibility conditions of section 122A.4142, subdivision 2,
7.16 	paragraph (b), and includes all teachers in a district, all
7.17 	teachers at a school site, or at least 25 percent of the
7.18 	teachers in a district.  The commissioner, in approving
7.19 	applications, may give preference to applications involving
7.20 	entire districts or sites or to applications that align measures
7.21 	of teacher performance with student academic achievement and
7.22 	progress under section 122A.4142.
7.23 	(b) Professional compensation aid for a qualifying school
7.24 	district, site, or portion of a district or school site is as
7.25 	follows:
7.26 	(1) for a school district in which the school board and the
7.27 	exclusive representative of the teachers agree to place all
7.28 	teachers in the district or at the site on the alternative
7.29 	compensation schedule, alternative compensation aid equals $150
7.30 	times the district's or the site's number of pupils enrolled on
7.31 	October 1 of the previous fiscal year; or 
7.32 	(2) for a district in which the school board and the
7.33 	exclusive representative of the teachers agree that at least 25
7.34 	percent of the district's licensed teachers will be paid on the
7.35 	alternative compensation schedule, alternative compensation aid
7.36 	equals $150 times the percentage of participating teachers times
8.1 	the district's number of pupils enrolled as of October 1 of the
8.2 	previous fiscal year.
8.3 		Subd. 2.Percentage of teachers. For purposes of this
8.4 	section, the percentage of teachers participating in the teacher
8.5 	professional pay system equals the ratio of the number of
8.6 	licensed teachers who are working at least 60 percent of a
8.7 	full-time teacher's hours and agree to participate in the
8.8 	teacher professional pay system to the total number of licensed
8.9 	teachers who are working at least 60 percent of a full-time
8.10 	teacher's hours.
8.11 		Subd. 3.Aid timing. (a) Districts or sites with
8.12 	approved applications must receive alternative compensation aid
8.13 	for each school year that the district or site participates in
8.14 	the program as described in this subdivision.  Districts or
8.15 	sites with applications received by the commissioner before June
8.16 	1 of the first year of a two-year contract shall receive
8.17 	alternative compensation aid for both years of the contract.
8.18 	Districts or sites with applications received by the
8.19 	commissioner after June 1 of the first year of a two-year
8.20 	contract shall receive alternative compensation aid only for the
8.21 	second year of the contract.  A qualifying district or site that
8.22 	received alternative compensation aid for the previous fiscal
8.23 	year must receive at least an amount equal to the lesser of the
8.24 	amount it received for the previous fiscal year or its
8.25 	proportionate share of the previous year's appropriation if the
8.26 	district or site submits a timely application and the
8.27 	commissioner determines that the district or site continues to
8.28 	implement an alternative teacher professional pay system,
8.29 	consistent with its application under this section.  The
8.30 	commissioner must approve initial applications for school
8.31 	districts qualifying under subdivision 1, paragraph (b), clause
8.32 	(1), by January 15 of each year.  If any money remains, the
8.33 	commissioner must approve aid amounts for school districts
8.34 	qualifying under subdivision 1, paragraph (b), clause (2), by
8.35 	February 15 of each year.
8.36 	(b) The commissioner shall select applicants that qualify
9.1 	for this program, notify school districts and school sites about
9.2 	the program, develop and disseminate application materials, and
9.3 	carry out other activities needed to implement this section.
9.4 	
EFFECTIVE DATE. This section is effective for revenue for
9.5 	fiscal year 2006 and later.

9.6 	Sec. 5. Minnesota Statutes 2004, section 122A.60,
9.7 	subdivision 1, is amended to read:
9.8 		Subdivision 1.Staff development committee.  A school
9.9 	board must use the revenue authorized in section 122A.61 for
9.10 	in-service education for programs under section 120B.22,
9.11 	subdivision 2, or for staff development plans under this
9.12 	section.  The board must establish an advisory staff development
9.13 	committee to develop the plan, assist site professional
9.14 	development teams in developing a site plan consistent with the
9.15 	goals of the plan, and evaluate staff development efforts at the
9.16 	site level.  A majority of the advisory committee and the site
9.17 	professional development team must be teachers representing
9.18 	various grade levels, subject areas, and special education.  The
9.19 	advisory committee must also include nonteaching staff, parents,
9.20 	and administrators. ~~Districts must report staff development~~
9.21 	~~results and expenditures to the commissioner in the form and~~
9.22 	~~manner determined by the commissioner.  The expenditure report~~
9.23 	~~must include expenditures by the board for district level~~
9.24 	~~activities and expenditures made by the staff.  The report must~~
9.25 	~~provide a breakdown of expenditures for (1) curriculum~~
9.26 	~~development and programs, (2) in-service education, workshops,~~
9.27 	~~and conferences, and (3) the cost of teachers or substitute~~
9.28 	~~teachers for staff development purposes.  Within each of these~~
9.29 	~~categories, the report must also indicate whether the~~
9.30 	~~expenditures were incurred at the district level or the school~~
9.31 	~~site level, and whether the school site expenditures were made~~
9.32 	~~possible by the grants to school sites that demonstrate~~
9.33 	~~exemplary use of allocated staff development revenue.  These~~
9.34 	~~expenditures are to be reported using the UFARS system.  The~~
9.35 	~~commissioner shall report the staff development expenditure data~~
9.36 	~~to the education committees of the legislature by February 15~~
10.1 	~~each year.~~

10.2 	Sec. 6. Minnesota Statutes 2004, section 122A.60, is
10.3 	amended by adding a subdivision to read:
10.4 		Subd. 1a.Effective staff development activities. Staff
10.5 	development activities must:
10.6 	(1) focus on the school classroom and research-based
10.7 	strategies that improve student learning;
10.8 	(2) provide opportunities for teachers to practice and
10.9 	improve their skills over time;
10.10 	(3) provide opportunities for teachers to use data to
10.11 	increase student achievement as part of their daily work;
10.12 	(4) enhance teacher content knowledge and instructional
10.13 	skills;
10.14 	(5) align with state and local academic standards; and 
10.15 	(6) provide opportunities to build professional
10.16 	relationships, foster collaboration among principals and staff
10.17 	who provide instruction, and provide opportunities for
10.18 	teacher-to-teacher mentoring.
10.19 	Staff development activities may include curriculum development
10.20 	and curriculum training programs, and activities that provide
10.21 	teachers and other members of site-based teams training to
10.22 	enhance team performance.  In addition, the school district may
10.23 	implement other staff development activities as required by law
10.24 	and those associated with professional teacher compensation
10.25 	models.  Release time provided for teachers to supervise
10.26 	students on field trips and school activities, or independent
10.27 	tasks not associated with enhancing the teacher's knowledge and
10.28 	skills, such as preparing report cards, calculating grades, or
10.29 	organizing classroom materials, may not be counted as staff
10.30 	development time that is financed with staff development
10.31 	reserved revenue under section 122A.61.

10.32 	Sec. 7. Minnesota Statutes 2004, section 122A.60, is
10.33 	amended by adding a subdivision to read:
10.34 		Subd. 4.Staff development report. (a) By October 15 of
10.35 	each year, the district and site staff development committees
10.36 	shall write and submit a report of staff development activities
11.1 	and expenditures for the previous year, in the form and manner
11.2 	determined by the commissioner.  The report must include
11.3 	assessment and evaluation data indicating progress toward
11.4 	district and site staff development goals based on teaching and
11.5 	learning outcomes, including the percentage of teachers and
11.6 	other staff involved in instruction participating in effective
11.7 	staff development activities under subdivision 3.
11.8 	(b) The report must provide a breakdown of expenditures for:
11.9 	(1) curriculum development and curriculum training
11.10 	programs; and 
11.11 	(2) staff development training models, workshops, and
11.12 	conferences, and the cost of releasing teachers or providing
11.13 	substitute teachers for staff development purposes.
11.14 	The report must also include whether the expenditures were
11.15 	incurred at the district level or the school site level, and
11.16 	whether the school site expenditures were made possible by
11.17 	grants to school sites that demonstrate exemplary use of
11.18 	allocated staff development revenue.  These expenditures must be
11.19 	reported using the uniform financial and accounting and
11.20 	reporting standards.
11.21 	(c) The commissioner shall report the staff development
11.22 	progress and expenditure data to the house of representatives
11.23 	and senate committees having jurisdiction over education by
11.24 	February 15 each year.

11.25 	Sec. 8. Minnesota Statutes 2004, section 122A.61,
11.26 	subdivision 1, is amended to read:
11.27 		Subdivision 1.Staff development revenue.  A district is
11.28 	required to reserve an amount equal to at least two percent of
11.29 	the basic revenue under section 126C.10, subdivision 2, for
11.30 	in-service education for programs under section 120B.22,
11.31 	subdivision 2, for staff development plans, including plans for
11.32 	challenging instructional activities and experiences under
11.33 	section 122A.60, and for curriculum development and programs,
11.34 	other in-service education, teachers' workshops, teacher
11.35 	conferences, the cost of substitute teachers staff development
11.36 	purposes, preservice and in-service education for special
12.1 	education professionals and paraprofessionals, and other related
12.2 	costs for staff development efforts. ~~A district may annually~~
12.3 	~~waive the requirement to reserve their basic revenue under this~~
12.4 	~~section if a majority vote of the licensed teachers in the~~
12.5 	~~district and a majority vote of the school board agree to a~~
12.6 	~~resolution to waive the requirement.~~A district in statutory
12.7 	operating debt is exempt from reserving basic revenue according
12.8 	to this section.  Districts may expend an additional amount of
12.9 	unreserved revenue for staff development based on their needs.
12.10 	With the exception of amounts reserved for staff development
12.11 	from revenues allocated directly to school sites, the board must
12.12 	initially allocate 50 percent of the reserved revenue to each
12.13 	school site in the district on a per teacher basis, which must
12.14 	be retained by the school site until used.  The board may retain
12.15 	25 percent to be used for district wide staff development
12.16 	efforts.  The remaining 25 percent of the revenue must be used
12.17 	to make grants to school sites for best practices methods.  A
12.18 	grant may be used for any purpose authorized under section
12.19 	120B.22, subdivision 2, 122A.60, or for the costs of curriculum
12.20 	development and programs, other in-service education, teachers'
12.21 	workshops, teacher conferences, substitute teachers for staff
12.22 	development purposes, and other staff development efforts, and
12.23 	determined by the site professional development team.  The site
12.24 	professional development team must demonstrate to the school
12.25 	board the extent to which staff at the site have met the
12.26 	outcomes of the program.  The board may withhold a portion of
12.27 	initial allocation of revenue if the staff development outcomes
12.28 	are not being met. A school district that participates in the
12.29 	professional compensation initiative may, but is not required
12.30 	to, reserve revenue under this section, except to the extent the
12.31 	school district agrees to reserve or use revenue as a condition
12.32 	of participation in the initiative.

12.33 	Sec. 9. Minnesota Statutes 2004, section 125A.76,
12.34 	subdivision 1, is amended to read:
12.35 		Subdivision 1.Definitions.  For the purposes of this
12.36 	section, the definitions in this subdivision apply.
13.1 	(a) "Base year" for fiscal year 1998 and later fiscal years
13.2 	means the second fiscal year preceding the fiscal year for which
13.3 	aid will be paid.
13.4 	(b) "Basic revenue" has the meaning given it in section
13.5 	126C.10, subdivision 2.  For the purposes of computing basic
13.6 	revenue pursuant to this section, each child with a disability
13.7 	shall be counted as prescribed in section 126C.05, subdivision 1.
13.8 	(c) "Essential personnel" means teachers, cultural
13.9 	liaisons, related services, and support services staff providing
13.10 	direct services to students.  Essential personnel may also
13.11 	include special education paraprofessionals or clericals
13.12 	providing support to teachers and students by preparing
13.13 	paperwork and making arrangements related to special education
13.14 	compliance requirements, including parent meetings and
13.15 	individual education plans.
13.16 	(d) "Average daily membership" has the meaning given it in
13.17 	section 126C.05.
13.18 	(e) "Program growth factor" means 1.046 for fiscal year
13.19 	2003, ~~and~~ 1.0 for fiscal year 2004 through fiscal year 2006, and
13.20 	1.046 for fiscal year 2007 and later.
13.21 	
EFFECTIVE DATE. This section is effective for revenue for
13.22 	fiscal year 2006.

13.23 	Sec. 10. Minnesota Statutes 2004, section 125A.76,
13.24 	subdivision 4, is amended to read:
13.25 		Subd. 4.State total special education aid.  The state
13.26 	total special education aid for fiscal year 2004 equals
13.27 	$530,642,000.  The state total special education aid for fiscal
13.28 	year 2005 equals $529,164,000. The state total special
13.29 	education aid for fiscal year 2006 equals $578,967,000.The
13.30 	state total special education aid for later fiscal years equals:
13.31 	(1) the state total special education aid for the preceding
13.32 	fiscal year; times
13.33 	(2) the program growth factor; times
13.34 	(3) the ratio of the state total average daily membership
13.35 	for the current fiscal year to the state total average daily
13.36 	membership for the preceding fiscal year.
14.1 	
EFFECTIVE DATE. This section is effective for revenue for
14.2 	fiscal year 2006.

14.3 	Sec. 11. Minnesota Statutes 2004, section 125A.79,
14.4 	subdivision 1, is amended to read:
14.5 		Subdivision 1.Definitions.  For the purposes of this
14.6 	section, the definitions in this subdivision apply.
14.7 	(a) "Unreimbursed special education cost" means the sum of
14.8 	the following:
14.9 	(1) expenditures for teachers' salaries, contracted
14.10 	services, supplies, equipment, and transportation services
14.11 	eligible for revenue under section 125A.76; plus
14.12 	(2) expenditures for tuition bills received under sections
14.13 	125A.03 to 125A.24 and 125A.65 for services eligible for revenue
14.14 	under section 125A.76, subdivision 2; minus
14.15 	(3) revenue for teachers' salaries, contracted services,
14.16 	supplies, and equipment under section 125A.76; minus
14.17 	(4) tuition receipts under sections 125A.03 to 125A.24 and
14.18 	125A.65 for services eligible for revenue under section 125A.76,
14.19 	subdivision 2.
14.20 	(b) "General revenue" means for fiscal year 1996, the sum
14.21 	of the general education revenue according to section 126C.10,
14.22 	subdivision 1, as adjusted according to section 127A.47,
14.23 	subdivision 7, plus the total referendum revenue according to
14.24 	section 126C.17, subdivision 4.  For fiscal years 1997 and
14.25 	later, "general revenue" means the sum of the general education
14.26 	revenue according to section 126C.10, subdivision 1, as adjusted
14.27 	according to section 127A.47, subdivisions 7 and 8, plus the
14.28 	total referendum revenue minus transportation sparsity revenue
14.29 	minus total operating capital revenue.
14.30 	(c) "Average daily membership" has the meaning given it in
14.31 	section 126C.05.
14.32 	(d) "Program growth factor" means 1.02 for fiscal year
14.33 	2003, ~~and~~ 1.0 for fiscal year 2004 through fiscal year 2006, and
14.34 	1.02 for fiscal year 2007 and later.
14.35 	
EFFECTIVE DATE. This section is effective for revenue for
14.36 	fiscal year 2006.

15.1 	Sec. 12. Minnesota Statutes 2004, section 125A.79,
15.2 	subdivision 6, is amended to read:
15.3 		Subd. 6.State total special education excess cost aid.
 15.4 	The state total special education excess cost aid for fiscal
15.5 	year 2004 equals $92,067,000.  The state total special education
15.6 	aid for fiscal year 2005 equals $91,811,000. The state total
15.7 	special education aid for fiscal year 2006 equals $95,520,000.
15.8 	The state total special education excess cost aid for fiscal
15.9 	year ~~2006~~ 2007 and later fiscal years equals:
15.10 	(1) the state total special education excess cost aid for
15.11 	the preceding fiscal year; times
15.12 	(2) the program growth factor; times
15.13 	(3) the ratio of the state total average daily membership
15.14 	for the current fiscal year to the state total average daily
15.15 	membership for the preceding fiscal year.
15.16 	
EFFECTIVE DATE. This section is effective for revenue for
15.17 	fiscal year 2006.

15.18 	Sec. 13. Minnesota Statutes 2004, section 126C.10,
15.19 	subdivision 2, is amended to read:
15.20 		Subd. 2.Basic revenue.  The basic revenue for each
15.21 	district equals the formula allowance times the adjusted
15.22 	marginal cost pupil units for the school year. ~~The formula~~
15.23 	~~allowance for fiscal year 2001 is $3,964.  The formula allowance~~
15.24 	~~for fiscal year 2002 is $4,068.~~The formula allowance for
15.25 	fiscal year 2003 through fiscal year 2005 is $4,601.  The
15.26 	formula allowance for fiscal year 2006 is $4,851.  The formula
15.27 	allowance for fiscal year 2007 and subsequent years is
15.28 	~~$4,601~~ $5,101.
15.29 	
EFFECTIVE DATE. This section is effective for revenue for
15.30 	fiscal year 2006.

15.31 	Sec. 14. [127A.095] IMPLEMENTATION OF NO CHILD LEFT
15.32 	BEHIND ACT.
15.33 		Subdivision 1.Continued implementation. The Department
15.34 	of Education shall continue to implement the federal No Child
15.35 	Left Behind Act, Public Law 107-110, without interruption.
15.36 		Subd. 2.No child left behind review. (a) The
16.1 	legislature states its intention to require the Department of
16.2 	Education to conduct a comprehensive review of the consolidated
16.3 	state plan submitted by the state to the federal Department of
16.4 	Education on implementing the No Child Left Behind Act.  The
16.5 	Minnesota Department of Education shall review and seek waivers
16.6 	under paragraph (b).  If the Department of Education is unable
16.7 	to obtain waivers under paragraph (b), it should make a
16.8 	recommendation in its report under paragraph (b) about whether
16.9 	the state should opt out of the No Child Left Behind Act.
16.10 	(b) The commissioner shall report to the house of
16.11 	representatives and senate committees having jurisdiction over
16.12 	kindergarten through grade 12 education policy and finance by
16.13 	April 1, 2006, whether the department has:
16.14 	(1) received approval from the federal Department of
16.15 	Education to allow the state to develop a plan using multiple
16.16 	measures including value-added measurement of student
16.17 	achievement in addition to relying on standardized test results
16.18 	to evaluate school and student performance for the purpose of
16.19 	determining adequate yearly progress;
16.20 	(2) received approval from the federal Department of
16.21 	Education to allow the state to average three years of data for
16.22 	the purposes of identifying a school for improvement;
16.23 	(3) developed a plan and model legislation to ensure that
16.24 	if an adequate yearly progress determination was made in error,
16.25 	that the error will not adversely affect the school's or school
16.26 	district's sanction status in subsequent years.  The department
16.27 	must have a policy in place to correct errors to accountability
16.28 	reports;
16.29 	(4) reported the additional costs for state fiscal years
16.30 	2006 to 2009 that the No Child Left Behind Act imposes on the
16.31 	state, the state's school districts, and charter schools that
16.32 	are in excess of costs associated with the Improving America's
16.33 	Schools Act of 1994, Public Law 103-382;
16.34 	(5) received approval from the federal Department of
16.35 	Education to allow the state to use No Child Left Behind Act
16.36 	money to provide supplemental education services only in the
17.1 	academic subject area that causes a school to miss adequate
17.2 	yearly progress;
17.3 	(6) received approval from the federal Department of
17.4 	Education to exclude from sanctions schools that have not made
17.5 	adequate yearly progress solely due to a subgroup of students
17.6 	with disabilities not testing at a proficient level;
17.7 	(7) received approval from the federal Department of
17.8 	Education to exclude from sanctions a school that is classified
17.9 	as not having made adequate yearly progress solely due to
17.10 	different subgroups testing below proficient levels for at least
17.11 	two consecutive years;
17.12 	(8) received approval from the federal Department of
17.13 	Education to identify a school as not making adequate yearly
17.14 	progress only after missing the adequate yearly progress targets
17.15 	in the same subject and subgroup for two consecutive years;
17.16 	(9) received approval from the federal Department of
17.17 	Education to identify a district as in need of improvement only
17.18 	after missing the adequate yearly progress target in the same
17.19 	subject across multiple grade spans for two consecutive years;
17.20 	(10) received approval from the federal Department of
17.21 	Education to limit the score of a student within multiple
17.22 	subgroups to the one subgroup that is the smallest subgroup in
17.23 	which that student is a part of when calculating adequate yearly
17.24 	progress;
17.25 	(11) implemented a uniform financial reporting system for
17.26 	school districts to report costs related to implementing No
17.27 	Child Left Behind Act requirements, including the costs of
17.28 	complying with sanctions;
17.29 	(12) received approval from the federal Department of
17.30 	Education to determine the percentage of the special education
17.31 	students that would be best educated based on out-of-level
17.32 	standards and tested accordingly based on an individual
17.33 	education plan; and 
17.34 	(13) received approval from the federal Department of
17.35 	Education to determine when to hold schools accountable for
17.36 	including a student with limited English proficiency in adequate
18.1 	yearly progress calculations.
18.2 		Subd. 3.Department of finance certification. If the
18.3 	commissioner of education has not received approval from the
18.4 	federal Department of Education regarding the conditions in
18.5 	subdivision 2, paragraph (b), the commissioner of finance shall
18.6 	certify and report to the legislature beginning January 1, 2007,
18.7 	and each year thereafter, the amount of federal revenue, if any,
18.8 	that may be withheld by the federal government as a result of a
18.9 	potential state decision to discontinue implementation of the No
18.10 	Child Left Behind Act.  The report shall also specify the
18.11 	intended purpose of the federal revenue and the amount of
18.12 	revenue that may be withheld from the state, each school
18.13 	district, and each charter school in each fiscal year.
18.14 	
EFFECTIVE DATE. This section is effective the day
18.15 	following final enactment.

18.16 	Sec. 15. SCHOOL FINANCE STUDY.
 18.17 	(a) The commissioner of education must contract with an
18.18 	independent contractor that has extensive experience working
18.19 	with various states on education finance systems to continue and
18.20 	complete the work done by the governor's education funding task
18.21 	force included in the June 2004 report, Investing in Our
18.22 	Future.  The commissioner must contract with a firm other than
18.23 	the consulting firm performing services for and submitting a
18.24 	report on behalf of the governor's education funding task force.
18.25 	(b) The contractor must:
18.26 	(1) conduct an in-depth analysis of the governor's
18.27 	education funding task force report, Investing in Our Future,
18.28 	dated June 2004, focusing on the data produced by the
18.29 	professional judgment panel study included in the report;
18.30 	(2) convene a meeting in Minnesota to help gather any
18.31 	necessary additional data that is not contained in the
18.32 	governor's task force report or to further validate some of the
18.33 	report's existing data;
18.34 	(3) determine the dollar value of an instructional services
18.35 	allocation, including cost estimates for each school district
18.36 	adjusting the allocation for individual student and school
19.1 	district characteristics; and 
19.2 	(4) conduct outreach and support to explain its findings to
19.3 	appropriate officials in Minnesota.
19.4 	(c) In addition to the requirements in paragraph (b), the
19.5 	contractor must analyze data from Minnesota school districts
19.6 	that have proven to be successful in educating students to meet
19.7 	the state's academic standards.  The contractor must use a
19.8 	statistical analysis to help explain differences in spending
19.9 	across school districts while controlling for student
19.10 	performance.
19.11 	(d) The commissioner must report on the findings on the
19.12 	contract to the legislative committees having jurisdiction over
19.13 	kindergarten through grade 12 finance before December 15, 2005.

19.14 	EFFECTIVE DATE. This section is effective the day
19.15 	following final enactment.

19.16 	Sec. 16. APPROPRIATIONS.
 19.17 		Subdivision 1.Department of education. The sums
19.18 	indicated in this section are appropriated from the general fund
19.19 	to the Department of Education for the fiscal years designated.
19.20 		Subd. 2.Improved school finance system contract. For a
19.21 	contract to follow up on the work of the governor's education
19.22 	funding task force:
19.23 	$  175,000 .....2006 
19.24 		Subd. 3.Staff development state match. For the state
19.25 	match for staff development under Minnesota Statutes, section
19.26 	122A.61:
19.27 	$45,939,000 .....2006 
19.28 	$..,...,........2007 
19.29 	Special School District No. 6, South St. Paul, may use its
19.30 	state match to implement its elementary and middle school
19.31 	international baccalaureate program expansion.
19.32 		Subd. 4.Professional compensation for teachers. For
19.33 	professional compensation for teachers aid established under
19.34 	Minnesota Statutes, section 122A.4142:
19.35 	$8,700,000 .....2006 
19.36 	$8,700,000 .....2007 
20.1 	If the appropriations under this subdivision are
20.2 	insufficient to fund all program participants, a participant may
20.3 	receive less than the maximum per pupil amount available under
20.4 	Minnesota Statutes, section 122A.4142, subdivision 4.  A
20.5 	qualifying district or site receiving professional compensation
20.6 	for teacher funding under this subdivision may use the funding
20.7 	it receives to leverage additional funds from a national program
20.8 	for enhancing teacher professionalism.  Grantees who received
20.9 	revenue in fiscal year 2005 under Minnesota Statutes 2004,
20.10 	sections 122A.413 to 122A.415 shall receive revenue in fiscal
20.11 	years 2006 and 2007 under Minnesota Statutes, section 122A.4142.

20.12 	Sec. 17. REPEALER.
 20.13 	Minnesota Statutes 2004, sections 122A.414 and 122A.415,
20.14 	are repealed.

20.15 	ARTICLE 2
20.16 	EARLY CHILDHOOD

20.17 	Section 1. Minnesota Statutes 2004, section 13.32,
20.18 	subdivision 2, is amended to read:
20.19 		Subd. 2.Student health and census data; data on
20.20 	parents.  (a) Health data concerning students, including but not
20.21 	limited to, data concerning immunizations, notations of special
20.22 	physical or mental problems and records of school nurses are
20.23 	educational data.  Access by parents to student health data
20.24 	shall be pursuant to section 13.02, subdivision 8.
20.25 	(b) Pupil census data, including emergency information and
20.26 	family information are educational data.
20.27 	(c) Results from student mental health screenings must be
20.28 	released to the child's parents or legal guardians and must not
20.29 	be maintained in the student record, unless the parent or
20.30 	guardian consents to the inclusion of the screening in the
20.31 	student record under section 121A.17, subdivision 3, paragraph
20.32 	(b), clause (1).
20.33 	(d) Data concerning parents are private data on individuals
20.34 	but may be treated as directory information if the same
20.35 	procedures that are used by a school district to designate
20.36 	student data as directory information under subdivision 5 are
21.1 	followed.

21.2 	Sec. 2. Minnesota Statutes 2004, section 121A.17,
21.3 	subdivision 1, is amended to read:
21.4 		Subdivision 1.Early childhood developmental screening.
 21.5 	Every school board must provide for a mandatory program of early
21.6 	childhood developmental screening for children at least once
21.7 	before school entrance, targeting children who are between ~~3-1/2~~ 
21.8 	three and four years old.  This screening program must be
21.9 	established either by one board, by two or more boards acting in
21.10 	cooperation, by service cooperatives, by early childhood family
21.11 	education programs, or by other existing programs.  This
21.12 	screening examination is a mandatory requirement for a student
21.13 	to continue attending kindergarten or first grade in a public
21.14 	school.  A child need not submit to developmental screening
21.15 	provided by a board if the child's health records indicate to
21.16 	the board that the child has received comparable developmental
21.17 	screening from a public or private health care organization or
21.18 	individual health care provider. A student identification
21.19 	number, as defined by the commissioner of education, shall be
21.20 	assigned at the time of early childhood developmental screening
21.21 	or at the time of the provision of health records indicating a
21.22 	comparable screening.  Each school district must provide the
21.23 	essential data in accordance with section 125B.07, subdivision
21.24 	6, to the Department of Education.Districts are encouraged to
21.25 	reduce the costs of preschool developmental screening programs
21.26 	by utilizing volunteers and public or private health care
21.27 	organizations or individual health care providers in
21.28 	implementing the program.

21.29 	Sec. 3. Minnesota Statutes 2004, section 121A.17,
21.30 	subdivision 3, is amended to read:
21.31 		Subd. 3.Screening program.  (a) A screening program must
21.32 	include at least the following components:  developmental
21.33 	assessments, a socioemotional development screening,hearing and
21.34 	vision screening or referral, immunization review and referral,
21.35 	the child's height and weight, identification of risk factors
21.36 	that may influence learning, screening for autism spectrum
22.1 	disorders,an interview with the parent about the child, and
22.2 	referral for assessment, diagnosis, and treatment or referrals
22.3 	to appropriate resources when potential needs are identified.
22.4 	For purposes of this section, socioemotional screening means
22.5 	assessing a child's ability, in the context of family,
22.6 	community, and cultural expectations, to (1) experience,
22.7 	control, and express emotions, (2) form close and secure
22.8 	interpersonal relationships, and (3) explore and experience
22.9 	surroundings and learn from them.
22.10 	The district and the person performing or supervising the
22.11 	screening must provide a parent or guardian with clear written
22.12 	notice that the parent or guardian may decline to answer
22.13 	questions or provide information about family circumstances that
22.14 	might affect development and identification of risk factors that
22.15 	may influence learning and that the socioemotional development
22.16 	part of the early childhood screening is voluntary as described
22.17 	in paragraph (b).  The notice must clearly state that declining
22.18 	to answer questions or provide information does not prevent the
22.19 	child from being enrolled in kindergarten or first grade if all
22.20 	other screening components are met.  If a parent or guardian is
22.21 	not able to read and comprehend the written notice, the district
22.22 	and the person performing or supervising the screening must
22.23 	convey the information in another manner.  The notice must also
22.24 	inform the parent or guardian that a child need not submit to
22.25 	the district screening program if the child's health records
22.26 	indicate to the school that the child has received comparable
22.27 	developmental screening performed within the preceding 365 days
22.28 	by a public or private health care organization or individual
22.29 	health care provider.  The notice must be given to a parent or
22.30 	guardian at the time the district initially provides information
22.31 	to the parent or guardian about screening and must be given
22.32 	again at the screening location.
22.33 	(b) (1) The socioemotional component of the developmental
22.34 	assessment may be included in the early childhood development
22.35 	screening if the parent or guardian has been provided with a
22.36 	clear written notice that this component of the screening is
23.1 	voluntary, and the parent or guardian has signed a document
23.2 	developed and approved by the commissioner either allowing or
23.3 	declining the socioemotional development component of the early
23.4 	childhood developmental screening and either allowing or
23.5 	declining the inclusion of the screening in the student record.
23.6 	The socioemotional component of the developmental assessment
23.7 	shall be conducted with a screening instrument approved by the
23.8 	commissioner of human services, as the designated state mental
23.9 	health authority, according to criteria that are updated and
23.10 	issued annually to ensure that approved screening instruments
23.11 	are valid and useful for this population.
23.12 	(2) All other screening components shall be consistent with
23.13 	the standards of the state commissioner of health for early
23.14 	developmental screening programs.  A developmental screening
23.15 	program must not provide laboratory tests or a physical
23.16 	examination to any child.  The district must request from the
23.17 	public or private health care organization or the individual
23.18 	health care provider the results of any laboratory test or
23.19 	physical examination within the 12 months preceding a child's
23.20 	scheduled screening.
23.21 	(c) If a child is without health coverage, the school
23.22 	district must refer the child to an appropriate health care
23.23 	provider.
23.24 	(d) A board may offer additional components such as
23.25 	nutritional, physical and dental assessments, review of family
23.26 	circumstances that might affect development, blood pressure,
23.27 	laboratory tests, and health history.
23.28 	(e) If a statement signed by the child's parent or guardian
23.29 	is submitted to the administrator or other person having general
23.30 	control and supervision of the school that the child has not
23.31 	been screened because of conscientiously held beliefs of the
23.32 	parent or guardian, the screening is not required.
23.33 	(f) The district must develop and implement community
23.34 	outreach plans to diverse populations to promote all children
23.35 	being screened at least once before school entrance, targeting
23.36 	children who are between three and four years old.  Districts
24.1 	are encouraged to include parents, early care and education
24.2 	programs, community partners, public or private health care
24.3 	organizations, and individual health care providers in the
24.4 	development of the outreach plans.

24.5 	Sec. 4. Minnesota Statutes 2004, section 121A.17, is
24.6 	amended by adding a subdivision to read:
24.7 		Subd. 4a.Follow-up socioemotional development
24.8 	screening. If the results of a school district conducted
24.9 	socioemotional development screening of a child indicates a need
24.10 	for further assessment, the district is not financially
24.11 	responsible for a mental health diagnostic assessment.  The
24.12 	district must notify a child's parent or legal guardian of the
24.13 	screening results, and may provide the child's parent or legal
24.14 	guardian with referrals to community providers.  If a child is
24.15 	without health coverage, the district must inform the child's
24.16 	parent or legal guardian of an appropriate health care
24.17 	provider.  This subdivision does not preclude the district from
24.18 	providing educational assessments.

24.19 	Sec. 5. Minnesota Statutes 2004, section 121A.17,
24.20 	subdivision 5, is amended to read:
24.21 		Subd. 5.Developmental screening program information.
 24.22 	The board must inform each resident family with a child eligible
24.23 	to participate in the developmental screening program about the
24.24 	availability of the program and the state's requirement that a
24.25 	child receive developmental screening, or present health records
24.26 	documenting that the child has received comparable developmental
24.27 	screening performed within the preceding 365 days by a public or
24.28 	private health care organization or individual health care
24.29 	provider,not later than 30 days after the first day of
24.30 	attending kindergarten in a public school. A school district
24.31 	must inform each resident family that the family has the option
24.32 	to participate in the screening conducted by the school district
24.33 	or receive screening conducted by a public or private health
24.34 	organization or individual health care provider.

24.35 	Sec. 6. Minnesota Statutes 2004, section 121A.19, is
24.36 	amended to read:
25.1 	121A.19 DEVELOPMENTAL SCREENING AID.
25.2 	Each school year, the state must pay a district ~~$40~~ $50 for
25.3 	each three-year-old child screened; $40 for each four-year-old
25.4 	child screened; and $30 for each five-year-old child screened
25.5 	prior to kindergarten according to the requirements of section
25.6 	121A.17.  If this amount of aid is insufficient, the district
25.7 	may permanently transfer from the general fund an amount that,
25.8 	when added to the aid, is sufficient.

25.9 	Sec. 7. [121A.2201] PSYCHOTROPIC DRUGS.
25.10 	A parent's refusal to consent to the administration of a
25.11 	psychotropic drug to the parent's child or to a psychiatric
25.12 	evaluation, screening, or examination of a student or child
25.13 	shall not be used as grounds, by itself, for prohibiting the
25.14 	child from attending a class or participating in a
25.15 	school-related activity.
25.16 	A school district must not recommend that a student use a
25.17 	psychotropic drug.

25.18 	Sec. 8. Minnesota Statutes 2004, section 124D.135,
25.19 	subdivision 1, is amended to read:
25.20 		Subdivision 1.Revenue.  The revenue for early childhood
25.21 	family education programs for a school district equals ~~$120 for~~
25.22 	~~fiscal years 2003 and 2004 and~~ $96 for fiscal year ~~2005~~ 2006 and
25.23 	$112 for fiscal year 2007 and later, times the greater of:
25.24 	(1) 150; or
25.25 	(2) the number of people under five years of age residing
25.26 	in the district on October 1 of the previous school year.

25.27 	Sec. 9. [124D.145] EARLY LEARNING GUIDELINES.
25.28 		Subdivision 1.Commissioners of education and human
25.29 	services. The commissioners of education and human services
25.30 	shall disseminate information to parents or legal guardians and
25.31 	provide information and training guidance to early care and
25.32 	education providers on the early learning guidelines developed
25.33 	for three- and four-year-old children that describe what
25.34 	children should know and be able to do to be prepared for
25.35 	kindergarten entrance.
25.36 		Subd. 2.Commissioner of human services. The
26.1 	commissioner of human services shall develop early learning
26.2 	guidelines and distribute the guidelines to parents or legal
26.3 	guardians and early care and education providers.  The
26.4 	guidelines must include what children from birth to age three
26.5 	should know and be able to do to be prepared for kindergarten
26.6 	entrance.  The commissioner shall provide information to parents
26.7 	or legal guardians and information and training to early care
26.8 	education providers on the guidelines.
26.9 		Subd. 3.Early care and education program providers. An
26.10 	early care and education program or provider that receives state
26.11 	money must be provided with a copy of the early learning
26.12 	guidelines for children birth to age five developed by the
26.13 	commissioners of education and human services to guide the
26.14 	program or provider in early care and education practices.

26.15 	Sec. 10. Minnesota Statutes 2004, section 124D.15,
26.16 	subdivision 1, is amended to read:
26.17 		Subdivision 1.Establishment; purpose.  A district or a
26.18 	group of districts may establish a school readiness program
26.19 	for ~~eligible~~ children age three to kindergarten entrance.  The
26.20 	purpose of a school readiness program is to ~~provide all eligible~~
26.21 	~~children adequate opportunities to participate in child~~
26.22 	~~development programs that enable the children to enter school~~
26.23 	~~with the necessary skills and behavior and family stability and~~
26.24 	~~support to progress and flourish~~ prepare children to enter
26.25 	kindergarten.

26.26 	Sec. 11. Minnesota Statutes 2004, section 124D.15,
26.27 	subdivision 3, is amended to read:
26.28 		Subd. 3.Program ~~eligibility~~ requirements.  A school
26.29 	readiness program must ~~include the following~~:
26.30 	(1) ~~a comprehensive plan to anticipate and meet the needs~~
26.31 	~~of participating families by coordinating existing social~~
26.32 	~~services programs and by fostering collaboration among agencies~~
26.33 	~~or other community-based organizations and programs that provide~~
26.34 	~~a full range of flexible, family-focused services to families~~
26.35 	~~with young children~~ conduct a child development assessment on
26.36 	each child to guide intentional curriculum planning and promote
27.1 	kindergarten readiness.  This assessment must be conducted on
27.2 	each child at entrance into the program and once prior to exit
27.3 	of the program and be maintained as part of a child's cumulative
27.4 	record;
27.5 	(2) ~~a development and learning component to help children~~
27.6 	~~develop appropriate social, cognitive, and physical skills, and~~
27.7 	~~emotional well-being;~~
27.8 	~~(3) health referral services to address children's medical,~~
27.9 	~~dental, mental health, and nutritional needs~~ demonstrate use of
27.10 	comprehensive curriculum based on early childhood research,
27.11 	professional practice, and department guidelines that prepares
27.12 	children for kindergarten;
27.13 	~~(4) a nutrition component to meet children's daily~~
27.14 	~~nutritional needs~~ (3) arrange for early childhood screening and
27.15 	appropriate referral;
27.16 	~~(5) parents' involvement in meeting children's educational,~~
27.17 	~~health, social service, and other needs~~ (4) involve parents in
27.18 	program planning and decision making;
27.19 	~~(6) community outreach to ensure participation by families~~
27.20 	~~who represent the racial, cultural, and economic diversity of~~
27.21 	~~the community;~~(5) coordinate with relevant community-based
27.22 	services; and 
27.23 	~~(7) community-based staff and program resources, including~~
27.24 	~~interpreters, that reflect the racial and ethnic characteristics~~
27.25 	~~of the children participating in the program; and~~ 
27.26 	~~(8) a literacy component to ensure that the literacy needs~~
27.27 	~~of parents are addressed through referral to and cooperation~~ (6)
27.28 	cooperate with adult basic education programs and other adult
27.29 	literacy programs.

27.30 	Sec. 12. Minnesota Statutes 2004, section 124D.15, is
27.31 	amended by adding a subdivision to read:
27.32 		Subd. 3a.Application and reporting requirements. (a) A
27.33 	school readiness program must submit a biennial plan to the
27.34 	commissioner for approval to receive aid under section 124D.16.
27.35 	The plan must document that the program will meet the program
27.36 	requirements under subdivision 3.  A school district shall
28.1 	submit the biennial plan by April 1 to the commissioner on a
28.2 	form prescribed by the commissioner.  One-half of the districts
28.3 	shall first submit the plan by April 1, 2006, and one-half of
28.4 	the districts by April 1, 2007.
28.5 	(b) Programs receiving school readiness funds must submit
28.6 	an annual report to the department.

28.7 	Sec. 13. Minnesota Statutes 2004, section 124D.15,
28.8 	subdivision 5, is amended to read:
28.9 		Subd. 5.Services with new or existing providers.  A
28.10 	district ~~is encouraged to~~ may contract with a ~~public~~ charter
28.11 	school or ~~nonprofit~~ community-based organization to provide
28.12 	eligible children developmentally appropriate services that meet
28.13 	the program requirements in subdivision 3.  In the alternative,
28.14 	a district may pay tuition or fees to place an eligible child in
28.15 	an existing program.  A district may establish a new program
28.16 	where no existing, reasonably accessible program meets the
28.17 	program requirements in subdivision 3. A copy of each contract
28.18 	must be submitted to the commissioner with the biennial plan.
28.19 	Services may be provided in a site-based program or in the home
28.20 	of the child or a combination of both.  The district may not
28.21 	restrict participation to district residents.

28.22 	Sec. 14. Minnesota Statutes 2004, section 124D.15,
28.23 	subdivision 10, is amended to read:
28.24 		Subd. 10.Supervision.  A program provided by a board
28.25 	must be supervised by a licensed early childhood teacher, a
28.26 	certified early childhood educator, or a licensed parent
28.27 	educator. ~~A program provided according to a contract between a~~
28.28 	~~district and a nonprofit organization or another private~~
28.29 	~~organization must be supervised and staffed according to the~~
28.30 	~~terms of the contract.~~

28.31 	Sec. 15. Minnesota Statutes 2004, section 124D.15,
28.32 	subdivision 12, is amended to read:
28.33 		Subd. 12.Program fees.  A district ~~may~~ must adopt a
28.34 	sliding fee schedule based on a family's income but must waive a
28.35 	fee for a participant unable to pay. ~~The fees charged must be~~
28.36 	~~designed to enable eligible children of all socioeconomic levels~~
29.1 	~~to participate in the program.~~

29.2 	Sec. 16. Minnesota Statutes 2004, section 124D.15, is
29.3 	amended by adding a subdivision to read:
29.4 		Subd. 14.Assistance. The department must provide
29.5 	assistance to districts with programs described in this section.

29.6 	Sec. 17. Minnesota Statutes 2004, section 124D.16,
29.7 	subdivision 2, is amended to read:
29.8 		Subd. 2.Amount of aid.  (a) A district is eligible to
29.9 	receive school readiness aid for eligible prekindergarten pupils
29.10 	enrolled in a school readiness program under section 124D.15if
29.11 	the ~~program~~ biennial plan required by ~~subdivision 1~~ section
29.12 	124D.15, subdivision 3a,has been approved by the commissioner.
29.13 	(b) For fiscal year 2002 and thereafter, a district must
29.14 	receive school readiness aid equal to:
29.15 	(1) the number of ~~eligible~~ four-year-old children in the
29.16 	district on October 1 for the previous school year times the
29.17 	ratio of 50 percent of the total school readiness aid for that
29.18 	year to the total number of ~~eligible~~ four-year-old children
29.19 	reported to the commissioner for the previous school year; plus
29.20 	(2) the number of pupils enrolled in the school district
29.21 	from families eligible for the free or reduced school lunch
29.22 	program for the ~~second~~ previous school year times the ratio of
29.23 	50 percent of the total school readiness aid for that year to
29.24 	the total number of pupils in the state from families eligible
29.25 	for the free or reduced school lunch program for the ~~second~~ 
29.26 	previous school year.

29.27 	Sec. 18. [124D.175] MINNESOTA EARLY LEARNING FOUNDATION.
29.28 		Subdivision 1.Goal. The Minnesota Early Learning
29.29 	Foundation is a public-private partnership which shall identify
29.30 	cost-effective ways to deliver quality early care and education
29.31 	experiences and parent education for families whose children are
29.32 	at risk of being unprepared for school.  The partnership shall
29.33 	also develop infrastructure supports and accountability measures
29.34 	to increase quality of early care and education settings and
29.35 	build community capacity for school readiness.  The partnership
29.36 	shall evaluate the resulting benefits and long-term savings to
30.1 	the Minnesota economy and the effectiveness of strategies for
30.2 	increasing children's readiness for school at kindergarten
30.3 	entrance.
30.4 		Subd. 2.Board. The Minnesota Early Learning Foundation,
30.5 	once established under section 501(c)(3) of the Internal Revenue
30.6 	Code, shall be governed by a board made up of public and private
30.7 	citizens with more than 50 percent of the members from the
30.8 	private sector.  The governor shall appoint the public sector
30.9 	members, including members from government, academia, and civil
30.10 	society.
30.11 	A review and planning advisory committee shall provide
30.12 	knowledgeable counsel and advice to the executive director and
30.13 	board for development of policies and procedures for the
30.14 	Minnesota Early Learning Foundation and review of cost-effective
30.15 	strategies for strengthening Minnesota's early care and
30.16 	education capabilities.  The committee shall include parents,
30.17 	representatives of the early care and education field,
30.18 	kindergarten through grade 12 education, public libraries, and
30.19 	business leaders, and shall reflect the ethnic and geographic
30.20 	diversity of the state of Minnesota.
30.21 		Subd. 3.Matching funds; awards. The Minnesota Early
30.22 	Learning Foundation shall match dollars appropriated from the
30.23 	state with nonpublic dollars raised by the board.  The board
30.24 	shall award grants for:
30.25 	(1) projects, including pilot projects that demonstrate
30.26 	successful approaches to the delivery of early childhood
30.27 	services and parent education to low-income families;
30.28 	(2) scholarships to low-income families to access early
30.29 	childhood parent education and high-quality early learning
30.30 	programs for their children; and 
30.31 	(3) strategies to improve the quality of early care and
30.32 	education through early learning standards and assessment, a
30.33 	quality rating system, program improvement grants, and
30.34 	professional development grants.

30.35 	Sec. 19. COORDINATION OF EARLY CARE AND EDUCATION
30.36 	PROGRAMS.
 31.1 	(a) The commissioners of education, human services, and
31.2 	health shall identify how they will coordinate activities and
31.3 	resources, with input from local communities and tribal
31.4 	governments, including setting priorities, aligning policies,
31.5 	and leveraging existing resources to achieve the goal for
31.6 	increased school readiness of all Minnesota children.  The
31.7 	commissioners shall report on the progress made, which must
31.8 	include information on:
31.9 	(1) coordinating and disseminating resources and
31.10 	information on school readiness and early care and education,
31.11 	health and nutrition, including child mental health and family
31.12 	support to:
31.13 	(i) parents and families with children birth to age five
31.14 	through key entry points, such as women, infants, and children
31.15 	(WIC), family home visiting, child welfare, public and private
31.16 	health care providers, and other public programs; and 
31.17 	(ii) early care and education providers, public and private
31.18 	health care providers, foster care providers, temporary care
31.19 	providers, shelters, crisis nurseries, and other facilities
31.20 	providing long-term or temporary care for young children, birth
31.21 	to age five;
31.22 	(2) supporting families, schools, and communities in
31.23 	facilitating the transition of young children into the
31.24 	kindergarten environment;
31.25 	(3) identifying, coordinating, and sharing resources and
31.26 	strategies between state departments that address the cultural
31.27 	and linguistic needs of families served;
31.28 	(4) amending the state Medicaid plan to expand the use of
31.29 	the child and teen checkup funding for allowable child
31.30 	development services, such as outreach for early childhood
31.31 	screening, and streamlining the process for voluntary
31.32 	certification of school districts as child and teen checkup
31.33 	providers; and 
31.34 	(5) referring children ages three to five in the child
31.35 	welfare system to the Interagency Early Intervention System for
31.36 	a developmental screening and referral to services if problems
32.1 	are identified.
32.2 	(b) The commissioners shall report to the senate and house
32.3 	of representatives committees having jurisdiction over early
32.4 	care and education by March 1, 2006.

32.5 	Sec. 20. SCHOOL READINESS KINDERGARTEN ASSESSMENT
32.6 	INITIATIVE.
 32.7 		Subdivision 1.Establishment. The commissioner of
32.8 	education shall establish a system for assessing the school
32.9 	readiness of children entering kindergarten, building on the two
32.10 	school readiness studies conducted by the Department of
32.11 	Education in 2002 and 2003.  The department shall also set
32.12 	biennial milestones for progress in the number of children
32.13 	reaching proficiency on all measures of the assessment.
32.14 		Subd. 2.Description. (a) The school readiness
32.15 	kindergarten assessment initiative must be implemented in all
32.16 	school districts in Minnesota on a voluntary basis over a
32.17 	five-year period.  The schedule for implementation is as follows:
32.18 	(1) fiscal year 2006, 6,000 entering kindergarteners;
32.19 	(2) fiscal year 2007, 18,000 entering kindergarteners;
32.20 	(3) fiscal year 2008, 30,000 entering kindergarteners;
32.21 	(4) fiscal year 2009, 45,000 entering kindergarteners; and 
32.22 	(5) fiscal year 2010, 60,000 entering kindergarteners.
32.23 	(b) Results of the assessment must be included in the
32.24 	annual school performance report cards under Minnesota Statutes,
32.25 	section 120B.36.
32.26 		Subd. 3.Evaluation and reporting. The commissioner
32.27 	shall evaluate the effectiveness of the data gathering system
32.28 	for implementing developmental assessments at kindergarten
32.29 	entrance on a school-by-school basis.  The commissioner shall
32.30 	report to the senate and house of representatives committees
32.31 	having jurisdiction over early childhood education on the
32.32 	progress toward reaching the milestones in odd-numbered years
32.33 	beginning with fiscal year 2007.

32.34 	Sec. 21. ADDITIONAL EARLY CHILDHOOD FAMILY EDUCATION AID;
32.35 	FISCAL YEAR 2006.
 32.36 	A district that has levied for early childhood family
33.1 	education revenue for fiscal year 2006 and that complies with
33.2 	the provisions of Minnesota Statutes, section 124D.13, shall
33.3 	receive supplemental early childhood family education aid
33.4 	revenue in fiscal year 2006 equal to $16 times the greater of
33.5 	150 or the number of children under five years of age residing
33.6 	in the school district on October 1 of the previous school
33.7 	year.  This revenue is in addition to any state aid the district
33.8 	may receive under Minnesota Statutes, section 124D.135,
33.9 	subdivision 4, and must be used for early childhood family
33.10 	education programs.

33.11 	Sec. 22. GRANTS TO PROMOTE KINDERGARTEN READINESS AND
33.12 	SUPPORT FAMILIES.
 33.13 		Subdivision 1.Administration. The commissioner of
33.14 	education shall award a planning grant for $50,000 to develop a
33.15 	project in Northwest Hennepin County that will promote the
33.16 	school readiness of children by coordinating and collaborating
33.17 	with community-based and neighborhood-based services that help
33.18 	stabilize at-risk families, and that support and assist parents
33.19 	in meeting the health and developmental needs of their children
33.20 	at the earliest possible age.
33.21 		Subd. 2.Program components. (a) Planning projects
33.22 	eligible for grant funding under this section must propose to:
33.23 	(1) collaborate and coordinate delivery of services with
33.24 	community organizations and agencies serving children and their
33.25 	families;
33.26 	(2) target services to families with children with services
33.27 	increasing based on financial needs;
33.28 	(3) build on existing services and coordinate a continuum
33.29 	of essential services, including, but not limited to, health
33.30 	services, family economic assistance, parent education and
33.31 	support, and preschool programs;
33.32 	(4) provide strategic outreach efforts to families using
33.33 	culturally specific social support, information, outreach, and
33.34 	other programs to promote healthy development of children and to
33.35 	help parents obtain the information, resources, and parenting
33.36 	skills needed to nurture and care for their children;
34.1 	(5) offer programs to expand public and private
34.2 	collaboration to promote the development of a coordinated and
34.3 	culturally specific system of services available to all
34.4 	families; and 
34.5 	(6) offer other programs or services to improve the health,
34.6 	development, and school readiness of children in target
34.7 	neighborhoods and communities.
34.8 		Subd. 3.Eligible grantees. An application for a grant
34.9 	may be submitted by a nonprofit organization, or consortium of
34.10 	nonprofit organizations, that demonstrates collaborative effort
34.11 	with at least one unit of local government.
34.12 		Subd. 4.Distribution. To the extent possible, the
34.13 	commissioner shall award a grant to applicants with experience
34.14 	or demonstrated ability in providing comprehensive,
34.15 	multidisciplinary, community-based programs with objectives
34.16 	similar to those listed in subdivision 2, or in providing other
34.17 	human services or social services programs using a
34.18 	multidisciplinary, community-based approach.
34.19 		Subd. 5.Applications. The application must be submitted
34.20 	on forms provided by the commissioner of education.  The grant
34.21 	application must include:
34.22 	(1) a description of the specific community that will be
34.23 	served under the program and the name, address, and a
34.24 	description of each community agency or agencies involved in the
34.25 	planning process;
34.26 	(2) a letter of intent from each community agency
34.27 	identified in clause (1) that indicates the agency's willingness
34.28 	to participate in the program planning; and 
34.29 	(3) a description of how public and private resources,
34.30 	including schools, health care facilities, government agencies,
34.31 	neighborhood organizations, and other resources, will be
34.32 	coordinated in the planning process.
34.33 		Subd. 6.Match. Each dollar of state money must be
34.34 	matched with 50 cents of nonstate money.  A program may match
34.35 	state money with in-kind contributions, including volunteer
34.36 	assistance.
35.1 		Subd. 7.Advisory committee. Each grantee must establish
35.2 	a program advisory board to advise the grantee on program
35.3 	design.  The board must include representatives of local units
35.4 	of government and representatives of the project area who
35.5 	reflect the geographic, cultural, racial, and ethnic diversity
35.6 	of that community.
35.7 	
EFFECTIVE DATE. This section is effective for revenue for
35.8 	fiscal year 2006.

35.9 	Sec. 23. APPROPRIATIONS.
 35.10 		Subdivision 1.Department of education. The sums
35.11 	indicated in this section are appropriated from the general fund
35.12 	to the Department of Education for the fiscal years designated.
35.13 		Subd. 2.Minnesota early learning foundation. For the
35.14 	Minnesota Early Learning Foundation under Minnesota Statutes,
35.15 	section 124D.175:
35.16 	$ 2,500,000 .....2006 
35.17 	This is a onetime appropriation.  Any amounts not expended
35.18 	in fiscal year 2006 may be carried forward to fiscal year 2007.
35.19 		Subd. 3.Department of education administration. For the
35.20 	Department of Education to administer the provisions of this
35.21 	article:
35.22 	$  450,000 .....2006 
35.23 	$  500,000 .....2007 
35.24 	These amounts must be added to the department's base
35.25 	appropriations.
35.26 		Subd. 4.Kindergarten readiness and family support. For
35.27 	grants to promote kindergarten readiness and support families
35.28 	under section 26:
35.29 	$   50,000 .....2006 
35.30 	This appropriation is available until June 30, 2007.
35.31 		Subd. 5.School readiness. For revenue for school
35.32 	readiness programs under Minnesota Statutes, sections 124D.15
35.33 	and 124D.16:
35.34 	$10,706,000 .....2006 
35.35 	$11,042,000 .....2007 
35.36 	The 2006 appropriation includes $1,417,000 for 2005 and
36.1 	$9,289,000 for 2006.
36.2 	The 2007 appropriation includes $1,729,000 for 2006 and
36.3 	$9,313,000 for 2007.
36.4 		Subd. 6.Early childhood family education aid. For early
36.5 	childhood family education aid under Minnesota Statutes, section
36.6 	124D.135:
36.7 	$16,765,000 .....2006 
36.8 	$18,039,000 .....2007 
36.9 	The 2006 appropriation includes $1,862,000 for 2005 and
36.10 	$14,903,000 for 2006.
36.11 	The 2007 appropriation includes $2,776,000 for 2006 and
36.12 	$15,263,000 for 2007.
36.13 		Subd. 7.Health and developmental screening aid. For
36.14 	health and developmental screening aid under Minnesota Statutes,
36.15 	sections 121A.17 and 121A.19:
36.16 	$3,076,000 .....2006 
36.17 	$3,512,000 .....2007 
36.18 	The 2006 appropriation includes $418,000 for 2005 and
36.19 	$2,658,000 for 2006.
36.20 	The 2007 appropriation includes $495,000 for 2006 and
36.21 	$3,017,000 for 2007.
36.22 		Subd. 8.Head start program. For Head Start programs
36.23 	under Minnesota Statutes, section 119A.52:
36.24 	$20,868,000 .....2006 
36.25 	$21,000,000 .....2007 

36.26 	Sec. 24. REPEALER.
 36.27 	(a) Minnesota Statutes 2004, sections 124D.15, subdivisions
36.28 	2, 4, 6, 7, 8, 9, 11, and 13; and 124D.16, subdivision 4, are
36.29 	repealed.
36.30 	(b) Minnesota Statutes 2004, section 124D.16, subdivision
36.31 	1, is repealed effective July 1, 2006.

36.32 	ARTICLE 3
36.33 	CHILD CARE

36.34 	Section 1. Minnesota Statutes 2004, section 119B.09,
36.35 	subdivision 1, is amended to read:
36.36 		Subdivision 1.General eligibility requirements for all
37.1 	applicants for child care assistance.  (a) Child care services
37.2 	must be available to families who need child care to find or
37.3 	keep employment or to obtain the training or education necessary
37.4 	to find employment and who:
37.5 	(1) meet the requirements of section 119B.05; receive MFIP
37.6 	assistance; and are participating in employment and training
37.7 	services under chapter 256J or 256K;
37.8 	(2) have household income below the eligibility levels for
37.9 	MFIP; or
37.10 	(3) have household income less than or equal to ~~175~~ 200 
37.11 	percent of the federal poverty guidelines, adjusted for family
37.12 	size, at program entry and less than 250 percent of the federal
37.13 	poverty guidelines, adjusted for family size, at program exit.
37.14 	(b) Child care services must be made available as in-kind
37.15 	services.
37.16 	(c) All applicants for child care assistance and families
37.17 	currently receiving child care assistance must be assisted and
37.18 	required to cooperate in establishment of paternity and
37.19 	enforcement of child support obligations for all children in the
37.20 	family as a condition of program eligibility.  For purposes of
37.21 	this section, a family is considered to meet the requirement for
37.22 	cooperation when the family complies with the requirements of
37.23 	section 256.741.
37.24 	
EFFECTIVE DATE. This section is effective July 1, 2005.

37.25 	Sec. 2. Minnesota Statutes 2004, section 119B.13, is
37.26 	amended by adding a subdivision to read:
37.27 		Subd. 7.Provider rate bonus for montessori
37.28 	accreditation. A Montessori child care provider accredited by
37.29 	the American Montessori Society, the Association Montessori
37.30 	International-USA, or the National Center for Montessori
37.31 	Education shall be paid a ten percent bonus above the maximum
37.32 	child care assistance rate.

37.33 	Sec. 3. PARENT FEE SCHEDULE.
 37.34 	Notwithstanding Minnesota Rules, part 3400.0100, subpart 4,
37.35 	the parent fee schedule is as follows:
37.36 	Income Range (as a Co-payment (as a
38.1 	percent of the federal percentage of adjusted
38.2 	poverty guidelines) gross income) 
38.3 	0-74.99% $0/month
38.4 	75.00-99.99% $5/month
38.5 	100.00-104.99% 3.23%
38.6 	105.00-109.99% 3.23%
38.7 	110.00-114.99% 3.23%
38.8 	115.00-119.99% 3.23%
38.9 	120.00-124.99% 3.60%
38.10 	125.00-129.99% 3.60%
38.11 	130.00-134.99% 3.60%
38.12 	135.00-139.99% 3.60%
38.13 	140.00-144.99% 3.97%
38.14 	145.00-149.99% 3.97%
38.15 	150.00-154.99% 3.97%
38.16 	155.00-159.99% 4.75%
38.17 	160.00-164.99% 4.75%
38.18 	165.00-169.99% 5.51%
38.19 	170.00-174.99% 5.88%
38.20 	175.00-179.99% 6.25%
38.21 	180.00-184.99% 6.98%
38.22 	185.00-189.99% 7.35%
38.23 	190.00-194.99% 7.72%
38.24 	195.00-199.99% 8.45%
38.25 	200.00-204.99% 9.92%
38.26 	205.00-209.99% 12.22%
38.27 	210.00-214.99% 12.65%
38.28 	215.00-219.99% 13.09%
38.29 	220.00-224.99% 13.52%
38.30 	225.00-229.99% 14.35%
38.31 	230.00-234.99% 15.71%
38.32 	235.00-239.99% 16.28%
38.33 	240.00-244.99% 17.37%
38.34 	245.00-249.99% 18.00%
38.35 	          250% ineligible 
38.36 	A family's monthly co-payment fee is the fixed percentage
39.1 	established for the income range multiplied by the highest
39.2 	possible income within that income range.

39.3 	Sec. 4. REPORT ON MEETING GOALS OF THE CHILD CARE
39.4 	ASSISTANCE PROGRAM.
 39.5 	The commissioner of human services shall monitor the
39.6 	progress related to meeting the goals of the child care
39.7 	assistance program, which is to provide child care assistance to
39.8 	low-income working families to allow parents to work and to
39.9 	access child care in the private market, and to ensure that
39.10 	children from low-income families are well cared for and ready
39.11 	to learn when they arrive at school.  The commissioner of human
39.12 	services shall report the findings to the senate and house of
39.13 	representatives committees having jurisdiction over child care
39.14 	issues on an annual basis beginning January 15, 2006.

39.15 	Sec. 5. VOLUNTARY QUALITY RATING SYSTEM FOR CHILD CARE.
 39.16 	(a) The commissioner of human services, in partnership with
39.17 	the Ready 4 K Quality Rating System Task Force and other
39.18 	interested organizations, shall develop a plan by January 15,
39.19 	2006, for a voluntary quality rating system for child care that
39.20 	provides consumer information to parents, identifies quality
39.21 	child care settings, and raises the quality of care in child
39.22 	care settings.  The plan shall include the process for choosing
39.23 	an early care and education nonprofit organization to administer
39.24 	the quality rating system.
39.25 	(b) The quality rating system must:
39.26 	(1) be aligned with the early learning guidelines developed
39.27 	by the commissioners of education and human services;
39.28 	(2) be research-based;
39.29 	(3) provide easy-to-understand information for parents;
39.30 	(4) be objective and verifiable;
39.31 	(5) be fair and representative of the care provided by
39.32 	child care programs;
39.33 	(6) be aligned with the Head Start performance standards
39.34 	and the Minnesota Department of Education's standards for school
39.35 	readiness programs in the public schools; and 
39.36 	(7) include at a minimum:
40.1 	(i) quality learning environment indicators;
40.2 	(ii) staff qualification indicators;
40.3 	(iii) family involvement and parent education indicators;
40.4 	and 
40.5 	(iv) program evaluation.

40.6 	Sec. 6. STUDY ON STANDARD STATEWIDE CHILD CARE LICENSE
40.7 	FEE.
 40.8 	The commissioner of human services, in conjunction with the
40.9 	Minnesota Association of County Social Services Administrators
40.10 	and the Minnesota Licensed Family Child Care Association, shall
40.11 	study the feasibility of setting a standard statewide license
40.12 	fee for licensed family child care providers, and shall make
40.13 	recommendations on a statewide standard fee in a report to the
40.14 	chairs of the senate and house of representatives committees
40.15 	having jurisdiction over child care issues.  The report is due
40.16 	January 15, 2006.

40.17 	Sec. 7. APPROPRIATIONS.
 40.18 		Subdivision 1.Department of human services. The sums
40.19 	indicated in this section are appropriated from the general fund
40.20 	to the Department of Human Services for the fiscal years
40.21 	designated.
40.22 		Subd. 2.Basic sliding fee unexpended funds.
 40.23 	Notwithstanding Minnesota Statutes, section 119B.03, subdivision
40.24 	5, paragraph (b), and Minnesota Rules, part 3400.0060, subpart
40.25 	4d, federal money available due to prior year underspending is
40.26 	appropriated for purposes allowed under Minnesota Statutes,
40.27 	section 119B.03, as follows:
40.28 	$4,865,208 .....2006 
40.29 	$8,710,841 .....2007 
40.30 	$2,381,287 .....2008 
40.31 	$2,381,287 .....2009 
40.32 		Subd. 3.Department of human services. For the
40.33 	Department of Human Services to administer the provisions of
40.34 	this article:
40.35 	$  200,000 .....2006 
40.36 	$  150,000 .....2007 
41.1 	The amount appropriated for fiscal year 2007 is added to
41.2 	the department's base appropriations.
41.3 		Subd. 4.Basic sliding fee. For basic sliding fee under
41.4 	Minnesota Statutes, section 119B.03:
41.5 	$32,892,000 .....2006 
41.6 	$32,928,000 .....2007 
41.7 	The general fund base is increased by $7,109,000 in fiscal
41.8 	years 2008 and 2009 for basic sliding fee child care assistance.

41.9 	ARTICLE 4
41.10 	ADULT BASIC EDUCATION

41.11 	Section 1. Minnesota Statutes 2004, section 124D.20,
41.12 	subdivision 3, is amended to read:
41.13 		Subd. 3.General community education revenue.  The
41.14 	general community education revenue for a district equals $5.95
41.15 	for fiscal year 2003 and 2004 ~~and~~ ,$5.23 for fiscal year 2005
41.16 	and ~~later~~ 2006, and $5.43 for fiscal years 2007 and later,times
41.17 	the greater of 1,335 or the population of the district.  The
41.18 	population of the district is determined according to section
41.19 	275.14.

41.20 	Sec. 2. Minnesota Statutes 2004, section 124D.20,
41.21 	subdivision 5, is amended to read:
41.22 		Subd. 5.Total community education levy.  To obtain total
41.23 	community education revenue, a district may levy the amount
41.24 	raised by a maximum tax rate of .985 percent in fiscal year
41.25 	2006, and .871 percent in fiscal year 2007 times the adjusted
41.26 	net tax capacity of the district.  If the amount of the total
41.27 	community education levy would exceed the total community
41.28 	education revenue, the total community education levy shall be
41.29 	determined according to subdivision 6. The commissioner is
41.30 	directed to adjust the tax rate for fiscal years 2008 and 2009
41.31 	to maintain the level of property tax projected in the February
41.32 	2005 forecast.

41.33 	Sec. 3. Minnesota Statutes 2004, section 124D.531,
41.34 	subdivision 1, is amended to read:
41.35 		Subdivision 1.State total adult basic education aid.
 41.36 	(a) The state total adult basic education aid for fiscal year
42.1 	2004 equals $34,388,000.  The state total adult basic education
42.2 	aid for fiscal year 2005 ~~and later is~~ equals $36,509,000. The
42.3 	state total adult basic education aid for fiscal year 2006
42.4 	equals $37,604,000.  The state total adult basic education aid
42.5 	for later fiscal years equals:
42.6 	(1) the state total adult basic education aid for the
42.7 	preceding fiscal year; times 
42.8 	(2) the lesser of:
42.9 	(i) 1.03; or 
42.10 	(ii) the ratio of the state total contact hours in the
42.11 	first prior program year to the state total contact hours in the
42.12 	second prior program year.  The ratio cannot be less than 1.00.
42.13 	Beginning in fiscal year 2002, two percent of the state total
42.14 	adult basic education aid must be set aside for adult basic
42.15 	education supplemental service grants under section 124D.522.
42.16 	(b) The state total adult basic education aid, excluding
42.17 	basic population aid, equals the difference between the amount
42.18 	computed in paragraph (a), and the state total basic population
42.19 	aid under subdivision 2.

42.20 	Sec. 4. Minnesota Statutes 2004, section 124D.531,
42.21 	subdivision 4, is amended to read:
42.22 		Subd. 4.Adult basic education program aid limit.  (a)
42.23 	Notwithstanding subdivisions 2 and 3, the total adult basic
42.24 	education aid for a program per prior year contact hour must not
42.25 	exceed $21 per prior year contact hour computed under
42.26 	subdivision 3, clause (2).
42.27 	(b) For fiscal year 2004, the aid for a program under
42.28 	subdivision 3, clause (2), adjusted for changes in program
42.29 	membership, must not exceed the aid for that program under
42.30 	subdivision 3, clause (2), for fiscal year 2003 by more than the
42.31 	greater of eight percent or $10,000.
42.32 	(c) For fiscal year 2005, the aid for a program under
42.33 	subdivision 3, clause (2), adjusted for changes in program
42.34 	membership, must not exceed the sum of the aid for that program
42.35 	under subdivision 3, clause (2), and Laws 2003, First Special
42.36 	Session chapter 9, article 9, section 8, paragraph (a), for the
43.1 	preceding fiscal year by more than the greater of eight percent
43.2 	or $10,000.
43.3 	(d) For fiscal year 2006 and later, the aid for a program
43.4 	under subdivision 3, clause (2), adjusted for changes in program
43.5 	membership, must not exceed the aid for that program under
43.6 	subdivision 3, clause (2), for the first preceding fiscal year
43.7 	by more than the greater of eight percent or $10,000.
43.8 	(e) Adult basic education aid is payable to a program for
43.9 	unreimbursed costs.
43.10 	(f) Any adult basic education aid that is not paid to a
43.11 	program because of the program aid limitation under paragraph
43.12 	(a) must be added to the state total adult basic education aid
43.13 	for the next fiscal year under subdivision 1.  Any adult basic
43.14 	education aid that is not paid to a program because of the
43.15 	program aid limitations under paragraph (b), (c), or (d) must be
43.16 	reallocated among programs by adjusting the rate per contact
43.17 	hour under subdivision 3, clause (2).
43.18 	
EFFECTIVE DATE. This section is effective the day
43.19 	following final enactment and applies for revenue distributions
43.20 	for fiscal years 2006 and later.

43.21 	Sec. 5. [124D.532] ADULT LITERACY GRANTS FOR RECENT
43.22 	IMMIGRANTS TO MINNESOTA.
43.23 		Subdivision 1.Establishment. An adult literacy grant
43.24 	program for recent immigrants to Minnesota is established in
43.25 	order to meet the English language needs of the unanticipated
43.26 	refugees and immigrants to the state of Minnesota.
43.27 		Subd. 2.Grants. The commissioner of education shall
43.28 	consult adult basic education service providers in establishing
43.29 	the form and manner of the grant program.  The commissioner
43.30 	shall award grants to organizations providing adult literacy
43.31 	services in order to help offset the additional costs due to
43.32 	unanticipated high enrollments of recent refugees and immigrants.

43.33 	Sec. 6. ADDITIONAL COMMUNITY EDUCATION AID FOR FISCAL
43.34 	YEAR 2006.
 43.35 	A district that has levied for community education revenue
43.36 	for fiscal year 2006 and that complies with the provisions of
44.1 	Minnesota Statutes, section 124D.19, shall receive supplemental
44.2 	state aid revenue in fiscal year 2006, equal to 20 cents times
44.3 	the greater of 1,335 or the population of the district
44.4 	determined according to Minnesota Statutes, section 275.14.
44.5 	This revenue is in addition to any state aid the district may
44.6 	receive under Minnesota Statutes, section 124D.20, subdivision
44.7 	7, and must be used according to subdivision 8 of that section.

44.8 	Sec. 7. APPROPRIATIONS.
 44.9 		Subdivision 1.Department of education. The sums
44.10 	indicated in this section are appropriated from the general fund
44.11 	to the Department of Education for the fiscal years designated.
44.12 		Subd. 2.Supplemental community education revenue. For
44.13 	the supplemental community education revenue under Minnesota
44.14 	Statutes, section 124D.205:
44.15 	$  871,000 .....2006 
44.16 	$1,044,000 .....2007 
44.17 	The 2006 appropriation includes $871,000 for fiscal year
44.18 	2006.
44.19 	The 2007 appropriation includes $162,000 for fiscal year
44.20 	2006 and $882,000 for fiscal year 2007.
44.21 		Subd. 3.Adult literacy grants for recent immigrants to
44.22 	minnesota. For adult literacy grants for recent immigrants to
44.23 	Minnesota:
44.24 	$1,500,000 .....2006 
44.25 	$1,500,000 .....2007 
44.26 		Subd. 4.Adult basic education aid. For adult basic
44.27 	education aid under Minnesota Statutes, section 124D.531:
44.28 	$37,539,000 .....2006 
44.29 	$38,678,000 .....2007 
44.30 	The 2006 appropriation includes $5,707,000 for 2005 and
44.31 	$31,832,000 for 2006.
44.32 	The 2007 appropriation includes $5,928,000 for 2006 and
44.33 	$32,750,000 for 2007.

44.34 	ARTICLE 5
44.35 	PREVENTION POLICY

44.36 	Section 1. Minnesota Statutes 2004, section 119A.46,
45.1 	subdivision 1, is amended to read:
45.2 		Subdivision 1.Definitions.  (a) The definitions in
45.3 	section 144.9501 and in this subdivision apply to this section.
45.4 	(b) "Eligible organization" means a lead contractor, city,
45.5 	board of health, community health department, community action
45.6 	agency as defined in section 119A.374, or community development
45.7 	corporation.
45.8 	(c) "Commissioner" means the commissioner of ~~education~~ 
45.9 	health, or the commissioner of the Minnesota Housing Finance
45.10 	Agency as authorized by section 462A.05, subdivision 15c.

45.11 	Sec. 2. Minnesota Statutes 2004, section 119A.46,
45.12 	subdivision 2, is amended to read:
45.13 		Subd. 2.Grants; administration.  Within the limits of
45.14 	the available appropriation, the commissioner must develop a
45.15 	swab team services program which may make demonstration and
45.16 	training grants to eligible organizations to train workers to
45.17 	provide swab team services and swab team services for
45.18 	residential property.  Grants may be awarded to nonprofit
45.19 	organizations to provide technical assistance and training to
45.20 	ensure quality and consistency within the statewide program.
45.21 	Grants must be awarded to help ensure full-time employment to
45.22 	workers providing swab team services and must be awarded for a
45.23 	two-year period.
45.24 	Grants awarded under this section must be made in
45.25 	consultation with the ~~commissioners of the Department of Health~~
45.26 	~~and~~ commissioner of the Housing Finance Agency~~,~~and
45.27 	representatives of neighborhood groups from areas at high risk
45.28 	for toxic lead exposure, a labor organization, the lead
45.29 	coalition, community action agencies, and the legal aid
45.30 	society.  The consulting team must review grant applications and
45.31 	recommend awards to eligible organizations that meet
45.32 	requirements for receiving a grant under this section.

45.33 	Sec. 3. Minnesota Statutes 2004, section 119A.46,
45.34 	subdivision 3, is amended to read:
45.35 		Subd. 3.Applicants.  (a) Interested eligible
45.36 	organizations may apply to the commissioner for grants under
46.1 	this section.  Two or more eligible organizations may jointly
46.2 	apply for a grant.  Priority shall be given to community action
46.3 	agencies in greater Minnesota and to either community action
46.4 	agencies or neighborhood based nonprofit organizations in cities
46.5 	of the first class.  Of the total annual appropriation, 12.5
46.6 	percent may be used for administrative purposes.  The
46.7 	commissioner may deviate from this percentage if a grantee can
46.8 	justify the need for a larger administrative allowance.  Of this
46.9 	amount, up to five percent may be used by the commissioner for
46.10 	state administrative purposes.  Applications must provide
46.11 	information requested by the commissioner, including at least
46.12 	the information required to assess the factors listed in
46.13 	paragraph (d).
46.14 	(b) The commissioner must ~~coordinate with the commissioner~~
46.15 	~~of health who must~~ consult with boards of health to provide swab
46.16 	team services for purposes of secondary prevention.  The
46.17 	priority for swab teams created by grants to eligible
46.18 	organizations under this section must be work assigned by the
46.19 	commissioner of health, or by a board of health if so designated
46.20 	by the commissioner of health, to provide secondary prevention
46.21 	swab team services to fulfill the requirements of section
46.22 	144.9504, subdivision 6, in response to a lead order.  Swab
46.23 	teams assigned work under this section by the commissioner, that
46.24 	are not engaged daily in fulfilling the requirements of section
46.25 	144.9504, subdivision 6, must deliver swab team services in
46.26 	response to elevated blood lead levels as defined in section
46.27 	144.9501, subdivision 9, where lead orders were not issued, and
46.28 	for purposes of primary prevention in census tracts known to be
46.29 	in areas at high risk for toxic lead exposure as described in
46.30 	section 144.9503, subdivision 2.
46.31 	(c) Any additional money must be used for grants to
46.32 	establish swab teams for primary prevention under section
46.33 	144.9503, in census tracts in areas at high risk for toxic lead
46.34 	exposure as determined under section 144.9503, subdivision 2.
46.35 	(d) In evaluating grant applications, the commissioner must
46.36 	consider the following criteria:
47.1 	(1) the use of lead contractors and lead workers for
47.2 	residential swab team services;
47.3 	(2) the participation of neighborhood groups and
47.4 	individuals, as swab team workers, in areas at high risk for
47.5 	toxic lead exposure;
47.6 	(3) plans for the provision of swab team services for
47.7 	primary and secondary prevention as required under subdivision
47.8 	4;
47.9 	(4) plans for supervision, training, career development,
47.10 	and postprogram placement of swab team members;
47.11 	(5) plans for resident and property owner education on lead
47.12 	safety;
47.13 	(6) plans for distributing cleaning supplies to area
47.14 	residents and educating residents and property owners on
47.15 	cleaning techniques;
47.16 	(7) sources of other funding and cost estimates for
47.17 	training, lead inspections, swab team services, equipment,
47.18 	monitoring, testing, and administration;
47.19 	(8) measures of program effectiveness;
47.20 	(9) coordination of program activities with other federal,
47.21 	state, and local public health, job training, apprenticeship,
47.22 	and housing renovation programs including programs under
47.23 	sections 116L.86 to 116L.881; and
47.24 	(10) prior experience in providing swab team services.

47.25 	Sec. 4. Minnesota Statutes 2004, section 119A.46,
47.26 	subdivision 8, is amended to read:
47.27 		Subd. 8.Testing and evaluation.  (a) Testing of the
47.28 	environment is not necessary by swab teams whose work is
47.29 	assigned by the commissioner of health or a designated board of
47.30 	health under section 144.9504.  The commissioner of health or
47.31 	designated board of health must share the analytical testing
47.32 	data collected on each residence for purposes of secondary
47.33 	prevention under section 144.9504 with the swab team workers in
47.34 	order to provide constructive feedback on their work and to the
47.35 	commissioner for the purposes set forth in paragraph (c).
47.36 	(b) For purposes of primary prevention evaluation, the
48.1 	following samples must be collected:  pretesting and posttesting
48.2 	of one noncarpeted floor dust lead sample and a notation of the
48.3 	extent and location of bare soil and of deteriorated lead-based
48.4 	paint.  The analytical testing data collected on each residence
48.5 	for purposes of primary prevention under section 144.9503 must
48.6 	be shared with the swab team workers in order to provide
48.7 	constructive feedback on their work and to the commissioner for
48.8 	the purposes set forth in paragraph (c).
48.9 	(c) The commissioner of health must establish a program ~~in~~
48.10 	~~cooperation with the commissioner~~ to collect appropriate data as
48.11 	required under paragraphs (a) and (b), in order to conduct an
48.12 	ongoing evaluation of swab team services for primary and
48.13 	secondary prevention.  Within the limits of available
48.14 	appropriations, the commissioner of health must conduct ~~or~~
48.15 	~~contract with the commissioner,~~on up to 1,000 residences which
48.16 	have received primary or secondary prevention swab team
48.17 	services, a postremediation evaluation, on at least a quarterly
48.18 	basis for a period of at least two years for each residence.
48.19 	The evaluation must note the condition of the paint within the
48.20 	residence, the extent of bare soil on the grounds, and collect
48.21 	and analyze one noncarpeted floor dust lead sample.  The data
48.22 	collected must be evaluated to determine the efficacy of
48.23 	providing swab team services as a method of reducing lead
48.24 	exposure in young children.  In evaluating this data, the
48.25 	commissioner of health must consider city size, community
48.26 	location, historic traffic flow, soil lead level of the property
48.27 	by area or census tract, distance to industrial point sources
48.28 	that emit lead, season of the year, age of the housing, age and
48.29 	number of children living at the residence, the presence of pets
48.30 	that move in and out of the residence, and other relevant
48.31 	factors as the commissioner of health may determine.

48.32 	Sec. 5. Minnesota Statutes 2004, section 124D.22,
48.33 	subdivision 3, is amended to read:
48.34 		Subd. 3.School-age care levy.  To obtain school-age care
48.35 	revenue, a school district may levy an amount equal to the
48.36 	district's school-age care revenue as defined in subdivision 2
49.1 	multiplied by the lesser of one, or the ratio of the quotient
49.2 	derived by dividing the adjusted net tax capacity of the
49.3 	district for the year before the year the levy is certified by
49.4 	the resident pupil units in the district for the school year to
49.5 	which the levy is attributable, to ~~$2,433~~ $2,925.
49.6 	
EFFECTIVE DATE. This section is effective for revenue for
49.7 	fiscal year 2007.

49.8 	Sec. 6. REVISOR'S INSTRUCTION.
 49.9 	In the next edition of Minnesota Statutes, the revisor of
49.10 	statutes shall renumber Minnesota Statutes, section 119A.46, as
49.11 	section 144.9512.