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125A.11 SPECIAL INSTRUCTIONS FOR NONRESIDENT CHILDREN.
    Subdivision 1. Nonresident tuition rate; other costs. (a) For fiscal year 2006, when a
school district provides instruction and services outside the district of residence, board and
lodging, and any tuition to be paid, shall be paid by the district of residence. The tuition rate
to be charged for any child with a disability, excluding a pupil for whom tuition is calculated
according to section 127A.47, subdivision 7, paragraph (d), must be the sum of (1) the actual cost
of providing special instruction and services to the child including a proportionate amount for
special transportation and unreimbursed building lease and debt service costs for facilities used
primarily for special education, plus (2) the amount of general education revenue and referendum
aid attributable to the pupil, minus (3) the amount of special education aid for children with a
disability received on behalf of that child, minus (4) if the pupil receives special instruction and
services outside the regular classroom for more than 60 percent of the school day, the amount
of general education revenue and referendum aid, excluding portions attributable to district and
school administration, district support services, operations and maintenance, capital expenditures,
and pupil transportation, attributable to that pupil for the portion of time the pupil receives special
instruction and services outside of the regular classroom. If the boards involved do not agree upon
the tuition rate, either board may apply to the commissioner to fix the rate. Notwithstanding
chapter 14, the commissioner must then set a date for a hearing or request a written statement
from each board, giving each board at least ten days' notice, and after the hearing or review of the
written statements the commissioner must make an order fixing the tuition rate, which is binding
on both school districts. General education revenue and referendum equalization aid attributable
to a pupil must be calculated using the resident district's average general education revenue and
referendum equalization aid per adjusted pupil unit.
    (b) For fiscal year 2007 and later, when a school district provides special instruction and
services for a pupil with a disability as defined in section 125A.02 outside the district of residence,
excluding a pupil for whom an adjustment to special education aid is calculated according to
section 127A.47, subdivision 7, paragraph (e), special education aid paid to the resident district
must be reduced by an amount equal to (1) the actual cost of providing special instruction and
services to the pupil, including a proportionate amount for special transportation and unreimbursed
building lease and debt service costs for facilities used primarily for special education, plus (2)
the amount of general education revenue and referendum equalization aid attributable to that
pupil, calculated using the resident district's average general education revenue and referendum
equalization aid per adjusted pupil unit excluding basic skills revenue, elementary sparsity revenue
and secondary sparsity revenue, minus (3) the amount of special education aid for children with a
disability received on behalf of that child, minus (4) if the pupil receives special instruction and
services outside the regular classroom for more than 60 percent of the school day, the amount of
general education revenue and referendum equalization aid, excluding portions attributable to
district and school administration, district support services, operations and maintenance, capital
expenditures, and pupil transportation, attributable to that pupil for the portion of time the pupil
receives special instruction and services outside of the regular classroom, calculated using the
resident district's average general education revenue and referendum equalization aid per adjusted
pupil unit excluding basic skills revenue, elementary sparsity revenue and secondary sparsity
revenue and the serving district's basic skills revenue, elementary sparsity revenue and secondary
sparsity revenue per adjusted pupil unit. Notwithstanding clauses (1) and (4), for pupils served
by a cooperative unit without a fiscal agent school district, the general education revenue and
referendum equalization aid attributable to a pupil must be calculated using the resident district's
average general education revenue and referendum equalization aid excluding elementary sparsity
revenue and secondary sparsity revenue. Special education aid paid to the district or cooperative
providing special instruction and services for the pupil must be increased by the amount of
the reduction in the aid paid to the resident district. Amounts paid to cooperatives under this
subdivision and section 127A.47, subdivision 7, shall be recognized and reported as revenues
and expenditures on the resident school district's books of account under sections 123B.75 and
123B.76. If the resident district's special education aid is insufficient to make the full adjustment,
the remaining adjustment shall be made to other state aid due to the district.
    (c) Notwithstanding paragraphs (a) and (b) and section 127A.47, subdivision 7, paragraphs
(d) and (e), a charter school where more than 30 percent of enrolled students receive special
education and related services, a site approved under section 125A.515, an intermediate district,
a special education cooperative, or a school district that served as the applicant agency for a
group of school districts for federal special education aids for fiscal year 2006 may apply to the
commissioner for authority to charge the resident district an additional amount to recover any
remaining unreimbursed costs of serving pupils with a disability. The application must include a
description of the costs and the calculations used to determine the unreimbursed portion to be
charged to the resident district. Amounts approved by the commissioner under this paragraph
must be included in the tuition billings or aid adjustments under paragraph (a) or (b), or section
127A.47, subdivision 7, paragraph (d) or (e), as applicable.
    (d) For purposes of this subdivision and section 127A.47, subdivision 7, paragraphs (d) and
(e), "general education revenue and referendum equalization aid" means the sum of the general
education revenue according to section 126C.10, subdivision 1, excluding alternative teacher
compensation revenue, plus the referendum equalization aid according to section 126C.17,
subdivision 7, as adjusted according to section 127A.47, subdivision 7, paragraphs (a) to (c).
    Subd. 2. Nonresident transportation. When a district provides instruction and services
in a day program outside the district of residence, the district of residence is responsible for
providing transportation. When a district provides instruction and services requiring board and
lodging or placement in a residential program outside the district of residence, the nonresident
district in which the child is placed is responsible for providing transportation. Transportation
costs shall be paid by the district responsible for providing transportation and the state shall
pay transportation aid to that district.
    Subd. 3. Agreement between districts to provide special instruction and services. For
the purposes of this section, any school district may enter into an agreement, upon mutually
agreed upon terms and conditions, to provide special instruction and services for children with a
disability. In that event, one of the participating units may employ and contract with necessary
qualified personnel to offer services in the several districts. Each participating unit must reimburse
the employing unit a proportionate amount of the actual cost of providing the special instruction
and services, less the amount of state special education aid.
History: Ex1959 c 71 art 1 s 17; 1961 c 559 s 2; 1961 c 690 s 1; 1965 c 241 s 1-3; 1967 c
872 s 1; 1969 c 981 s 2-5; 1971 c 689 s 1-3; 1973 c 683 s 1,2; 1975 c 162 s 41; 1975 c 321 s 2;
1975 c 432 s 8-10; 1976 c 211 s 1-6; 1976 c 271 s 13-18; 1977 c 447 art 3 s 1-4; 1977 c 449 s 12;
1978 c 733 s 1; 1978 c 764 s 3-5; 1978 c 793 s 61; 1979 c 334 art 2 s 1,2; art 3 s 2,3; 1980 c 509
s 30; 1981 c 358 art 1 s 1; art 3 s 2-7; 1982 c 424 s 28,29,130; 1982 c 548 art 3 s 1-3; 1983 c 247
s 55; 1983 c 258 s 13; 1983 c 314 art 1 s 22; art 3 s 1; 1984 c 463 art 3 s 1; 1984 c 654 art 5 s 58;
1Sp1985 c 12 art 3 s 2-8; 1986 c 444; 1987 c 384 art 2 s 24; 1987 c 398 art 3 s 2-14; 1988 c 486 s
2-5; 1988 c 629 s 24; 1988 c 718 art 3 s 1; art 6 s 2; 1989 c 209 art 2 s 1; 1989 c 329 art 3 s 1-3;
1991 c 265 art 3 s 1,2,38; art 11 s 1; 1991 c 292 art 6 s 58 subd 2; 1992 c 499 art 3 s 1-7; art 11 s
1; 1993 c 224 art 3 s 1-9; art 14 s 3; 1994 c 483 s 1; 1994 c 647 art 3 s 2-8,34; 1Sp1995 c 3 art
3 s 1-3; art 16 s 13; 1996 c 412 art 2 s 1,2; art 3 s 1-3; 1998 c 397 art 2 s 29,164; art 11 s 3;
1Sp2001 c 6 art 3 s 9; 1Sp2005 c 5 art 3 s 7; 2006 c 263 art 3 s 1; 2007 c 146 art 3 s 4

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Revisor of Statutes