1.1 	A bill for an act
1.2 	relating to education; providing for general education revenue, education 
1.3 	excellence, special programs, nutrition and accounting, self-sufficiency and 
1.4 	lifelong learning, and state agencies; authorizing rulemaking; appropriating 
1.5 	money;amending Minnesota Statutes 2004, sections 119A.50, subdivision 1; 
1.6 	119A.52; 119A.53; 119A.545; 120A.20, subdivision 1; 120A.22, subdivision 
1.7 	3; 120B.023; 123A.06, subdivision 2; 124D.10, subdivision 16; 124D.518, 
1.8 	subdivision 4; 124D.52, subdivision 1; 124D.61; 124D.68, subdivision 3; 
1.9 	125A.091, subdivisions 5, 7, 9, 10, 12, 13, 14, 15, 19, 20; 125A.27, subdivision 
1.10 	11; 125A.29; 125A.30; 125A.32; 125A.33; 125A.48; 125A.515, subdivisions 
1.11 	1, 3, 5, 6, 7, 9, 10; 125A.63, subdivision 4; 125A.69, subdivision 3; 125A.75, 
1.12 	subdivision 1; 126C.05, subdivision 1; 126C.10, subdivision 6; 126C.44; 
1.13 	Minnesota Statutes 2005 Supplement, sections 120B.131, subdivision 2; 
1.14 	121A.53, subdivision 1; 122A.415, subdivisions 1, 3; 123B.76, subdivision 
1.15 	3; 124D.095, subdivision 4; 124D.68, subdivision 2; 125A.11, subdivision 1; 
1.16 	125A.28; 126C.43, subdivision 2; 127A.45, subdivision 10;  Laws 2005, First 
1.17 	Special Session chapter 5, article 2, sections 81; 84, subdivision 13; article 7, 
1.18 	section 20, subdivision 5; proposing coding for new law in Minnesota Statutes, 
1.19 	chapter 119A; repealing Minnesota Statutes 2004, sections 119A.51; 120A.20, 
1.20 	subdivision 3; 123B.10; 125A.10; 125A.515, subdivision 2.
1.21 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.22 	ARTICLE 1
1.23 	GENERAL EDUCATION REVENUE

1.24 	Section 1. Minnesota Statutes 2004, section 120A.20, subdivision 1, is amended to 
1.25 	read:
1.26 		Subdivision 1.Age limitations; pupils. (a)All schools supported in whole or 
1.27 	in part by state funds are public schools. Admission to a public school is free to any 
1.28 	person who: (1) resides within the district that operates the school, who; (2) is under 21 
1.29 	years of age, or who meet the requirements of paragraph (c); and who (3) satisfies the 
1.30 	minimum age requirements imposed by this section. Notwithstanding the provisions of 
2.1 	any law to the contrary, the conduct of all students under 21 years of age pupils attending a 
2.2 	public secondary school is governed by a single set of reasonable rules and regulations 
2.3 	promulgated by the school board. 
2.4 	No (b) A person shall not be admitted to any a public school (1) as a kindergarten 
2.5 	pupil, unless the pupil is at least five years of age on September 1 of the calendar year in 
2.6 	which the school year for which the pupil seeks admission commences; or (2) as a 1st 
2.7 	grade student, unless the pupil is at least six years of age on September 1 of the calendar 
2.8 	year in which the school year for which the pupil seeks admission commences or has 
2.9 	completed kindergarten; except that any school board may establish a policy for admission 
2.10 	of selected pupils at an earlier age.
2.11 	(c) A pupil who becomes age 21 after enrollment is eligible for continued enrollment 
2.12 	until at least one of the following occurs: (1) the first September 1 after the pupil's 
2.13 	21st birthday; (2) the pupil's completion of the graduation requirements; (3) the pupil's 
2.14 	withdrawal with no subsequent enrollment within 21 calendar days; or (4) the end of 
2.15 	the school year.

2.16 	Sec. 2. Minnesota Statutes 2005 Supplement, section 122A.415, subdivision 1, is 
2.17 	amended to read:
2.18 		Subdivision 1.Revenue amount. (a) A school district, intermediate school district, 
2.19 	school site, or charter school that meets the conditions of section 122A.414 and submits an 
2.20 	application approved by the commissioner is eligible for alternative teacher compensation 
2.21 	revenue.
2.22 	(b) For school district and intermediate school district applications, the commissioner 
2.23 	must consider only those applications to participate that are submitted jointly by a 
2.24 	district and the exclusive representative of the teachers. The application must contain an 
2.25 	alternative teacher professional pay system agreement that:
2.26 	(1) implements an alternative teacher professional pay system consistent with 
2.27 	section 122A.414; and
2.28 	(2) is negotiated and adopted according to the Public Employment Labor Relations 
2.29 	Act under chapter 179A, except that notwithstanding section 179A.20, subdivision 3, a 
2.30 	district may enter into a contract for a term of two or four years.
2.31 	Alternative teacher compensation revenue for a qualifying school district or site in 
2.32 	which the school board and the exclusive representative of the teachers agree to place 
2.33 	teachers in the district or at the site on the alternative teacher professional pay system 
2.34 	equals $260 times the number of pupils enrolled at the district or site on October 1 of 
2.35 	the previous fiscal year. Alternative teacher compensation revenue for a qualifying 
3.1 	intermediate school district must be calculated under section 126C.10, subdivision 34, 
3.2 	paragraphs (a) and (b).
3.3 	(c) For a newly combined or consolidated district, the revenue shall be computed 
3.4 	using the sum of pupils enrolled on October 1 of the previous year in the districts entering 
3.5 	into the combination or consolidation. The commissioner may adjust the revenue 
3.6 	computed for a site using prior year data to reflect changes attributable to school closings, 
3.7 	school openings, or grade level reconfigurations between the prior year and the current 
3.8 	year.
3.9 	(d) The revenue is available only to school districts, intermediate school districts, 
3.10 	school sites, and charter schools that fully implement an alternative teacher professional 
3.11 	pay system by October 1 of the current school year.
3.12 	(e) The revenue must be maintained in a reserve account within the general fund.

3.13 	Sec. 3. Minnesota Statutes 2005 Supplement, section 122A.415, subdivision 3, is 
3.14 	amended to read:
3.15 		Subd. 3.Revenue timing. (a) Districts, intermediate school districts, school sites, 
3.16 	or charter schools with approved applications must receive alternative compensation 
3.17 	revenue for each school year that the district, intermediate school district, school site, 
3.18 	or charter school implements an alternative teacher professional pay system under this 
3.19 	subdivision and section 122A.414. For fiscal year 2007 and later, a qualifying district, 
3.20 	intermediate school district, school site, or charter school that received alternative teacher 
3.21 	compensation aid for the previous fiscal year must receive at least an amount of alternative 
3.22 	teacher compensation revenue equal to the lesser of the amount it received for the previous 
3.23 	fiscal year or the amount it qualifies for under subdivision 1 for the current fiscal year if 
3.24 	the district, intermediate school district, school site, or charter school submits a timely 
3.25 	application and the commissioner determines that the district, intermediate school district, 
3.26 	school site, or charter school continues to implement an alternative teacher professional 
3.27 	pay system, consistent with its application under this section.
3.28 	(b) The commissioner shall approve applications that comply with subdivision 1, 
3.29 	and section 122A.414, subdivisions 2, paragraph (b), and 2a, if the applicant is a charter 
3.30 	school, in the order in which they are received, select applicants that qualify for this 
3.31 	program, notify school districts, intermediate school districts, school sites, and charter 
3.32 	schools about the program, develop and disseminate application materials, and carry out 
3.33 	other activities needed to implement this section.
3.34 	(c) For applications approved under this section before August 1 of the fiscal year for 
3.35 	which the aid is paid, the portion of the state total basic alternative teacher compensation 
4.1 	aid entitlement allocated to charter schools must not exceed $522,000 for fiscal year 2006 
4.2 	and $3,374,000 for fiscal year 2007. For fiscal year 2008 and later, the portion of the state 
4.3 	total basic alternative teacher compensation aid entitlement allocated to charter schools 
4.4 	must not exceed the product of $3,374,000 times the ratio of the state total charter school 
4.5 	enrollment for the previous fiscal year to the state total charter school enrollment for the 
4.6 	second previous year fiscal year 2006. Additional basic alternative teacher compensation 
4.7 	aid may be approved for charter schools after August 1, not to exceed the charter school 
4.8 	limit for the following fiscal year, if the basic alternative teacher compensation aid 
4.9 	entitlement for school districts and intermediate school districts based on applications 
4.10 	approved by August 1 does not expend the remaining amount under the limit.

4.11 	Sec. 4. Minnesota Statutes 2004, section 123A.06, subdivision 2, is amended to read:
4.12 		Subd. 2.People to be served. A center shall provide programs for secondary 
4.13 	pupils and adults. A center may also provide programs and services for elementary and 
4.14 	secondary pupils who are not attending the center to assist them in being successful in 
4.15 	school. A center shall use research-based best practices for serving limited English 
4.16 	proficient students and their parents. An individual education plan team may identify a 
4.17 	center as an appropriate placement to the extent a center can provide the student with the 
4.18 	appropriate special education services described in the student's plan. Pupils eligible 
4.19 	to be served are those age five to adults 22 and older in kindergarten through grade 12 
4.20 	 who qualify under the graduation incentives program in section  124D.68, subdivision 
4.21 	2, or those pupils who are eligible to receive special education services under sections  
4.22 	125A.03 to  125A.24, and  125A.65. 

4.23 	Sec. 5. Minnesota Statutes 2005 Supplement, section 123B.76, subdivision 3, is 
4.24 	amended to read:
4.25 		Subd. 3.Expenditures by building. (a) For the purposes of this section, "building" 
4.26 	means education site as defined in section 123B.04, subdivision 1.
4.27 	(b) Each district shall maintain separate accounts to identify general fund 
4.28 	expenditures for each building. All expenditures for regular instruction, secondary 
4.29 	vocational instruction, and school administration must be reported to the department 
4.30 	separately for each building. All expenditures for special education instruction, 
4.31 	instructional support services, and pupil support services provided within a specific 
4.32 	building must be reported to the department separately for each building. Salary 
4.33 	expenditures reported by building must reflect actual salaries for staff at the building and 
5.1 	must not be based on districtwide averages. All other general fund expenditures may be 
5.2 	reported by building or on a districtwide basis.
5.3 	(c) The department must annually report information showing school district general 
5.4 	fund expenditures per pupil by program category for each building and estimated school 
5.5 	district general fund revenue generated by pupils attending each building on its Web 
5.6 	site. For purposes of this report:
5.7 	(1) expenditures not reported by building shall be allocated among buildings on a 
5.8 	uniform per pupil basis;
5.9 	(2) basic skills revenue shall be allocated according to section 126C.10, subdivision 
5.10 	4;
5.11 	(3) secondary sparsity revenue and elementary sparsity revenue shall be allocated 
5.12 	according to section 126C.10, subdivisions 7 and 8;
5.13 	(4) alternative teacher compensation revenue shall be allocated according to section 
5.14 	122A.415, subdivision 1;
5.15 	(5) other general education revenue shall be allocated on a uniform per pupil unit 
5.16 	basis;
5.17 	(5) (6)  first grade preparedness aid shall be allocated according to section 124D.081;
5.18 	(6) (7)  state and federal special education aid and Title I aid shall be allocated in 
5.19 	proportion to district expenditures for these programs by building; and
5.20 	(7)(8) other general fund revenues shall be allocated on a uniform per pupil basis, 
5.21 	except that the department may allocate other revenues attributable to specific buildings 
5.22 	directly to those buildings.

5.23 	Sec. 6. Minnesota Statutes 2005 Supplement, section 124D.68, subdivision 2, is 
5.24 	amended to read:
5.25 		Subd. 2.Eligible pupils. The following pupils are A pupil under the age of 21 or 
5.26 	who meets the requirements of section 120A.20, subdivision 1, paragraph (c), is  eligible to 
5.27 	participate in the graduation incentives program:
5.28 	(a) any pupil under the age of 21 who, if the pupil:
5.29 	(1) performs substantially below the performance level for pupils of the same age 
5.30 	in a locally determined achievement test;
5.31 	(2) is at least one year behind in satisfactorily completing coursework or obtaining 
5.32 	credits for graduation;
5.33 	(3) is pregnant or is a parent;
5.34 	(4) has been assessed as chemically dependent;
5.35 	(5) has been excluded or expelled according to sections 121A.40 to 121A.56;
6.1 	(6) has been referred by a school district for enrollment in an eligible program or 
6.2 	a program pursuant to section 124D.69;
6.3 	(7) is a victim of physical or sexual abuse;
6.4 	(8) has experienced mental health problems;
6.5 	(9) has experienced homelessness sometime within six months before requesting a 
6.6 	transfer to an eligible program;
6.7 	(10) speaks English as a second language or has limited English proficiency; or
6.8 	(11) has withdrawn from school or has been chronically truant; or.
6.9 	(b) any person who is at least 21 years of age and who:
6.10 	(1) has received fewer than 14 years of public or nonpublic education, beginning 
6.11 	at age 5;
6.12 	(2) has not completed the requirements for a high school diploma; and
6.13 	(3) at the time of application, (i) is eligible for unemployment benefits or has 
6.14 	exhausted the benefits, (ii) is eligible for, or is receiving income maintenance and support 
6.15 	services, as defined in section 116L.19, subdivision 5, or (iii) is eligible for services under 
6.16 	the displaced homemaker program or any programs under the federal Jobs Training 
6.17 	Partnership Act or its successor.

6.18 	Sec. 7. Minnesota Statutes 2004, section 124D.68, subdivision 3, is amended to read:
6.19 		Subd. 3.Eligible programs. (a) A pupil who is eligible according to subdivision 2 
6.20 	may enroll in area learning centers under sections  123A.05 to  123A.08. 
6.21 	(b) A pupil who is eligible according to subdivision 2 and who is between the ages 
6.22 	of 16 and 21 may enroll in postsecondary courses under section  124D.09. 
6.23 	(c) A pupil who is eligible under subdivision 2, may enroll in any public elementary 
6.24 	or secondary education program. However, a person who is eligible according to 
6.25 	subdivision 2, clause (b), may enroll only if the school board has adopted a resolution 
6.26 	approving the enrollment.
6.27 	(d) A pupil who is eligible under subdivision 2, may enroll in any nonpublic, 
6.28 	nonsectarian school that has contracted with the serving school district to provide 
6.29 	educational services.
6.30 	(e) A pupil who is between the ages of 16 and 21 may enroll in any adult basic 
6.31 	education programs approved under section  124D.52 and operated under the community 
6.32 	education program contained in section  124D.19. 

6.33 	Sec. 8. Minnesota Statutes 2004, section 126C.05, subdivision 1, is amended to read:
7.1 		Subdivision 1.Pupil unit. Pupil units for each Minnesota resident pupil under the 
7.2 	age of 21 or who meets the requirements of section 120A.20, subdivision 1, paragraph 
7.3 	(c), in average daily membership enrolled in the district of residence, in another district 
7.4 	under sections  123A.05 to  123A.08,  124D.03,  124D.06,  124D.07,  124D.08, or  124D.68; 
7.5 	in a charter school under section  124D.10; or for whom the resident district pays tuition 
7.6 	under section  123A.18,  123A.22,  123A.30,  123A.32,  123A.44,  123A.488,  123B.88, 
7.7 	subdivision 4,  124D.04,  124D.05,  125A.03 to  125A.24,  125A.51, or  125A.65, shall be 
7.8 	counted according to this subdivision. 
7.9 	(a) A prekindergarten pupil with a disability who is enrolled in a program approved 
7.10 	by the commissioner and has an individual education plan is counted as the ratio of the 
7.11 	number of hours of assessment and education service to 825 times  1.25 with a minimum 
7.12 	average daily membership of 0.28, but not more than  1.25 pupil units. 
7.13 	(b) A prekindergarten pupil who is assessed but determined not to be handicapped is 
7.14 	counted as the ratio of the number of hours of assessment service to 825 times  1.25. 
7.15 	(c) A kindergarten pupil with a disability who is enrolled in a program approved 
7.16 	by the commissioner is counted as the ratio of the number of hours of assessment and 
7.17 	education services required in the fiscal year by the pupil's individual education program 
7.18 	plan to 875, but not more than one.
7.19 	(d) A kindergarten pupil who is not included in paragraph (c) is counted as .557 of a 
7.20 	pupil unit for fiscal year 2000 and thereafter.
7.21 	(e) A pupil who is in any of grades 1 to 3 is counted as  1.115 pupil units for fiscal 
7.22 	year 2000 and thereafter. 
7.23 	(f) A pupil who is any of grades 4 to 6 is counted as  1.06 pupil units for fiscal 
7.24 	year 1995 and thereafter. 
7.25 	(g) A pupil who is in any of grades 7 to 12 is counted as 1.3 pupil units.
7.26 	(h) A pupil who is in the postsecondary enrollment options program is counted 
7.27 	as 1.3 pupil units.

7.28 	Sec. 9. Minnesota Statutes 2004, section 126C.10, subdivision 6, is amended to read:
7.29 		Subd. 6.Definitions. The definitions in this subdivision apply only to subdivisions 
7.30 	7 and 8.
7.31 	(a) "High school" means a public secondary school, except a charter school under 
7.32 	section 124D.10,  that has pupils enrolled in at least the 10th, 11th, and 12th grades. If 
7.33 	there is no secondary high  school in the district that has pupils enrolled in at least the 
7.34 	10th, 11th, and 12th grades, and the school is at least 19 miles from the next nearest 
8.1 	school, the commissioner must designate one school in the district as a high school for the 
8.2 	purposes of this section.
8.3 	(b) "Secondary average daily membership" means, for a district that has only one 
8.4 	high school, the average daily membership of pupils served in grades 7 through 12. For a 
8.5 	district that has more than one high school, "secondary average daily membership" for 
8.6 	each high school means the product of the average daily membership of pupils served in 
8.7 	grades 7 through 12 in the high school, times the ratio of six to the number of grades 
8.8 	in the high school.
8.9 	(c) "Attendance area" means the total surface area of the district, in square miles, 
8.10 	divided by the number of high schools in the district. For a district that does not operate 
8.11 	a high school and is less than 19 miles from the nearest operating high school, the 
8.12 	attendance area equals zero.
8.13 	(d) "Isolation index" for a high school means the square root of 55 percent of the 
8.14 	attendance area plus the distance in miles, according to the usually traveled routes, 
8.15 	between the high school and the nearest high school. For a district in which there is located 
8.16 	land defined in section  84A.01,  84A.20, or  84A.31, the distance in miles is the sum of: 
8.17 	(1) the square root of one-half of the attendance area; and
8.18 	(2) the distance from the border of the district to the nearest high school.
8.19 	(e) "Qualifying high school" means a high school that has an isolation index greater 
8.20 	than 23 and that has secondary average daily membership of less than 400.
8.21 	(f) "Qualifying elementary school" means an a public  elementary school, except a 
8.22 	charter school under section 124D.10,  that is located 19 miles or more from the nearest 
8.23 	elementary school or from the nearest elementary school within the district and, in either 
8.24 	case, has an elementary average daily membership of an average of 20 or fewer per grade.
8.25 	(g) "Elementary average daily membership" means, for a district that has only 
8.26 	one elementary school, the average daily membership of pupils served in kindergarten 
8.27 	through grade 6. For a district that has more than one elementary school, "average daily 
8.28 	membership" for each school means the average daily membership of pupils served in 
8.29 	kindergarten through grade 6 multiplied by the ratio of seven to the number of grades 
8.30 	in the elementary school.

8.31 	Sec. 10. Minnesota Statutes 2005 Supplement, section 126C.43, subdivision 2, is 
8.32 	amended to read:
8.33 		Subd. 2.Payment to unemployment insurance program trust fund by state 
8.34 	and political subdivisions. (a) A district may levy the amount necessary (i) (1) to pay 
8.35 	the district's obligations under section 268.052, subdivision 1, and (ii) (2) to pay for job 
9.1 	placement services offered to employees who may become eligible for benefits pursuant 
9.2 	to section 268.085 for the fiscal year the levy is certified.
9.3 	(b) Districts with a balance remaining in their reserve for reemployment as of June 
9.4 	30, 2003, may not expend the reserved funds for future reemployment expenditures. Each 
9.5 	year a levy reduction must be made to return these funds to taxpayers. The amount of 
9.6 	the levy reduction must be equal to the lesser of: (1) the remaining reserved balance for 
9.7 	reemployment, or (2) the amount of the district's current levy under paragraph (a).

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

9.9 	Sec. 11. Minnesota Statutes 2004, section 126C.44, is amended to read:
9.10 	126C.44 SAFE SCHOOLS LEVY.
9.11 	Each district may make a levy on all taxable property located within the district for 
9.12 	the purposes specified in this section. The maximum amount which may be levied for all 
9.13 	costs under this section shall be equal to $27 multiplied by the district's adjusted marginal 
9.14 	cost pupil units for the school year. The proceeds of the levy must be reserved and used 
9.15 	for directly funding the following purposes or for reimbursing the cities and counties who 
9.16 	contract with the district for the following purposes: (1) to pay the costs incurred for the 
9.17 	salaries, benefits, and transportation costs of peace officers and sheriffs for liaison in 
9.18 	services in the district's schools; (2) to pay the costs for a drug abuse prevention program 
9.19 	as defined in section  609.101, subdivision 3, paragraph (e), in the elementary schools; (3) 
9.20 	to pay the costs for a gang resistance education training curriculum in the district's schools; 
9.21 	(4) to pay the costs for security in the district's schools and on school property; or (5) to 
9.22 	pay the costs for other crime prevention, drug abuse, student and staff safety, and violence 
9.23 	prevention measures taken by the school district. For expenditures under clause (1), the 
9.24 	district must initially attempt to contract for services to be provided by peace officers or 
9.25 	sheriffs with the police department of each city or the sheriff's department of the county 
9.26 	within the district containing the school receiving the services. If a local police department 
9.27 	or a county sheriff's department does not wish to provide the necessary services, the 
9.28 	district may contract for these services with any other police or sheriff's department 
9.29 	located entirely or partially within the school district's boundaries. The levy authorized 
9.30 	under this section is not included in determining the school district's levy limitations.

9.31 	EFFECTIVE DATE. This section is effective for revenue for fiscal year 2006.

9.32 	Sec. 12. Minnesota Statutes 2005 Supplement, section 127A.45, subdivision 10, 
9.33 	is amended to read:
10.1 		Subd. 10.Payments to school nonoperating funds. Each fiscal year state general 
10.2 	fund payments for a district nonoperating fund must be made at the current year aid 
10.3 	payment percentage of the estimated entitlement during the fiscal year of the entitlement. 
10.4 	This amount shall be paid in 12 equal monthly installments. The amount of the actual 
10.5 	entitlement, after adjustment for actual data, minus the payments made during the fiscal 
10.6 	year of the entitlement must be paid prior to October 31 of the following school year. The 
10.7 	commissioner may make advance payments of debt service equalization aid and state-paid 
10.8 	tax credits  for a district's debt service fund earlier than would occur under the preceding 
10.9 	schedule if the district submits evidence showing a serious cash flow problem in the fund. 
10.10 	The commissioner may make earlier payments during the year and, if necessary, increase 
10.11 	the percent of the entitlement paid to reduce the cash flow problem.

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

10.13 	Sec. 13.  REPEALER.
 10.14 	Minnesota Statutes 2004, section 120A.20, subdivision 3, is repealed.

10.15 	ARTICLE 2
10.16 	EDUCATION EXCELLENCE

10.17 	Section 1. Minnesota Statutes 2004, section 120A.22, subdivision 3, is amended to 
10.18 	read:
10.19 		Subd. 3.Parent defined; residency determined. (a) In this section and sections  
10.20 	120A.24 and  120A.26, "parent" means a parent, guardian, or other person having legal 
10.21 	custody of a child. 
10.22 	(b) In sections  125A.03 to  125A.24 and  125A.65, "parent" means a parent, guardian, 
10.23 	or other person having legal custody of a child under age 18. For an unmarried pupil age 
10.24 	18 or over, "parent" means the pupil unless a guardian or conservator has been appointed, 
10.25 	in which case it means the guardian or conservator. 
10.26 	(c) For purposes of sections  125A.03 to  125A.24 and  125A.65, the school district of 
10.27 	residence for an unmarried pupil age 18 or over who is a parent under paragraph (b) and 
10.28 	who is placed in a center for care and treatment, shall be the school district in which the 
10.29 	pupil's biological or adoptive parent or designated guardian resides. 
10.30 	(d) For a married pupil age 18 or over, the school district of residence is the school 
10.31 	district in which the married pupil resides.
10.32 	(e) If a student does not meet the residency requirements of the school district in 
10.33 	which the student is attending school, the student may be removed from the school only 
11.1 	after receiving due process as determined by the district school board. The due process 
11.2 	requirements must, at a minimum, include notice to the parent and an opportunity for the 
11.3 	parent to be heard. 

11.4 	Sec. 2. Minnesota Statutes 2004, section 120B.023, is amended to read:
11.5 	120B.023 BENCHMARKS.
11.6 	(a) The commissioner must supplement required state academic standards with 
11.7 	grade-level benchmarks. High school benchmarks may cover more than one grade. The 
11.8 	benchmarks must implement statewide academic standards by specifying the academic 
11.9 	knowledge and skills that schools must offer and students must achieve to satisfactorily 
11.10 	complete a state standard. Benchmarks are published to inform and guide parents, 
11.11 	teachers, school districts, and other interested persons and for use in developing tests 
11.12 	consistent with the benchmarks.
11.13 	(b) The commissioner shall publish benchmarks in the State Register and transmit 
11.14 	the benchmarks in any other manner that makes them accessible to the general public. The 
11.15 	commissioner may charge a reasonable fee for publications.
11.16 	(c) Once established, the commissioner may change the benchmarks only with 
11.17 	specific legislative authorization and after completing a review under paragraph (d).
11.18 	(d) The commissioner must develop and implement a system for reviewing on a 
11.19 	four-year six-year cycle each of the required academic standards and related benchmarks 
11.20 	and elective standards beginning in the 2006-2007 2009-2010 school year.
11.21 	(e) The benchmarks are not subject to chapter 14 and section  14.386 does not apply. 

11.22 	Sec. 3. Minnesota Statutes 2005 Supplement, section 120B.131, subdivision 2, is 
11.23 	amended to read:
11.24 		Subd. 2.Reimbursement for examination fees. The state may reimburse 
11.25 	college-level examination program (CLEP) fees for a Minnesota public high school 
11.26 	student who has successfully completed one or more college-level courses in high school 
11.27 	and earned a satisfactory score on one or more CLEP examinations in the following 
11.28 	subjects: composition and literature, mathematics and science, social sciences and history, 
11.29 	foreign languages, and business and humanities. The state may reimburse each successful
11.30 	student for up to six examination fees. The commissioner shall establish application 
11.31 	procedures and a process and schedule for fee reimbursements. The commissioner must 
11.32 	give priority to reimburse the CLEP examination fees of students of low-income families.

12.1 	Sec. 4. Minnesota Statutes 2005 Supplement, section 121A.53, subdivision 1, is 
12.2 	amended to read:
12.3 		Subdivision 1.Exclusions and expulsions. The school board must report through 
12.4 	the department electronic reporting system each exclusion or,  expulsion, or other removal 
12.5 	action taken in lieu of an exclusion or expulsion  within 30 days of the effective date of 
12.6 	the action to the commissioner of education. This report must include a statement of 
12.7 	alternative educational services given the pupil and the reason for, the effective date, and 
12.8 	the duration of the exclusion or expulsion. The report must also include the student's age, 
12.9 	grade, gender, race, and special education status.

12.10 	Sec. 5. Minnesota Statutes 2005 Supplement, section 124D.095, subdivision 4, is 
12.11 	amended to read:
12.12 		Subd. 4.Online learning parameters. (a) An online learning student must receive 
12.13 	academic credit for completing the requirements of an online learning course or program. 
12.14 	Secondary credits granted to an online learning student must be counted toward the 
12.15 	graduation and credit requirements of the enrolling district. The enrolling district must 
12.16 	apply the same graduation requirements to all students, including online learning students, 
12.17 	and must continue to provide nonacademic services to online learning students. If a 
12.18 	student completes an online learning course or program that meets or exceeds a graduation 
12.19 	standard or grade progression requirement at the enrolling district, that standard or 
12.20 	requirement is met. The enrolling district must use the same criteria for accepting online 
12.21 	learning credits or courses as it does for accepting credits or courses for transfer students 
12.22 	under section 124D.03, subdivision 9. The enrolling district may reduce the teacher 
12.23 	contact time of an online learning student in proportion to the number of online learning 
12.24 	courses the student takes from an online learning provider that is not the enrolling district.
12.25 	(b) An online learning student may:
12.26 	(1) enroll during a single school year in a maximum of 12 semester-long courses or 
12.27 	their equivalent delivered by an online learning provider or the enrolling district;
12.28 	(2) complete course work at a grade level that is different from the student's current 
12.29 	grade level; and
12.30 	(3) enroll in additional courses with the online learning provider under a separate 
12.31 	agreement that includes terms for payment of any tuition or course fees.
12.32 	(c) A student with a disability may enroll in an online learning course or program 
12.33 	if the student's IEP team determines that online learning is appropriate education for 
12.34 	the student.
13.1 	(d)(c) An online learning student has the same access to the computer hardware 
13.2 	and education software available in a school as all other students in the enrolling district. 
13.3 	An online learning provider must assist an online learning student whose family qualifies 
13.4 	for the education tax credit under section 290.0674 to acquire computer hardware and 
13.5 	educational software for online learning purposes.
13.6 	(e)(d) An enrolling district may offer online learning to its enrolled students. 
13.7 	Such online learning does not generate online learning funds under this section. An 
13.8 	enrolling district that offers online learning only to its enrolled students is not subject 
13.9 	to the reporting requirements or review criteria under subdivision 7. A teacher with a 
13.10 	Minnesota license must assemble and deliver instruction to enrolled students receiving 
13.11 	online learning from an enrolling district. The delivery of instruction occurs when the 
13.12 	student interacts with the computer or the teacher and receives ongoing assistance and 
13.13 	assessment of learning. The instruction may include curriculum developed by persons 
13.14 	other than a teacher with a Minnesota license.
13.15 	(f)(e) An online learning provider that is not the enrolling district is subject to 
13.16 	the reporting requirements and review criteria under subdivision 7. A teacher with a 
13.17 	Minnesota license must assemble and deliver instruction to online learning students. The 
13.18 	delivery of instruction occurs when the student interacts with the computer or the teacher 
13.19 	and receives ongoing assistance and assessment of learning. The instruction may include 
13.20 	curriculum developed by persons other than a teacher with a Minnesota license. Unless 
13.21 	the commissioner grants a waiver, a teacher providing online learning instruction must not 
13.22 	instruct more than 40 students in any one online learning course or program.

13.23 	Sec. 6. Minnesota Statutes 2004, section 124D.10, subdivision 16, is amended to read:
13.24 		Subd. 16.Transportation. (a) By July 1 of each fiscal year, a charter school must 
13.25 	notify the district in which the school is located and the Department of Education if it will 
13.26 	provide transportation for pupils enrolled in the school its own transportation or use the 
13.27 	transportation services of the district in which it is located  for the fiscal year.
13.28 	(b) If a charter school elects to provide transportation for pupils, the transportation 
13.29 	must be provided by the charter school within the district in which the charter school is 
13.30 	located. The state must pay transportation aid to the charter school according to section  
13.31 	124D.11, subdivision 2. 
13.32 	For pupils who reside outside the district in which the charter school is located, the 
13.33 	charter school is not required to provide or pay for transportation between the pupil's 
13.34 	residence and the border of the district in which the charter school is located. A parent 
13.35 	may be reimbursed by the charter school for costs of transportation from the pupil's 
14.1 	residence to the border of the district in which the charter school is located if the pupil is 
14.2 	from a family whose income is at or below the poverty level, as determined by the federal 
14.3 	government. The reimbursement may not exceed the pupil's actual cost of transportation 
14.4 	or 15 cents per mile traveled, whichever is less. Reimbursement may not be paid for 
14.5 	more than 250 miles per week.
14.6 	At the time a pupil enrolls in a charter school, the charter school must provide the 
14.7 	parent or guardian with information regarding the transportation.
14.8 	(c) If a charter school does not elect to provide transportation, transportation for 
14.9 	pupils enrolled at the school must be provided by the district in which the school is 
14.10 	located, according to sections  123B.88, subdivision 6, and  124D.03, subdivision 8, for a 
14.11 	pupil residing in the same district in which the charter school is located. Transportation 
14.12 	may be provided by the district in which the school is located, according to sections  
14.13 	123B.88, subdivision 6, and  124D.03, subdivision 8, for a pupil residing in a different 
14.14 	district. If the district provides the transportation, the scheduling of routes, manner and 
14.15 	method of transportation, control and discipline of the pupils, and any other matter relating 
14.16 	to the transportation of pupils under this paragraph shall be within the sole discretion, 
14.17 	control, and management of the district. 

14.18 	Sec. 7. Minnesota Statutes 2004, section 124D.61, is amended to read:
14.19 	124D.61 GENERAL REQUIREMENTS FOR PROGRAMS.
14.20 	A district which receives aid pursuant to section  124D.65 must comply with that 
14.21 	enrolls one or more children of limited English proficiency must implement an educational 
14.22 	program that includes at a minimum the following program requirements: 
14.23 	(1) identification and reclassification criteria for children of limited English 
14.24 	proficiency and program entrance and exit criteria for children with limited English 
14.25 	proficiency must be documented by the district, applied uniformly to children of limited 
14.26 	English proficiency, and made available to parents and other stakeholders upon request;
14.27 	(2) a written plan of services that describes programming by English proficiency 
14.28 	level made available to parents upon request. The plan must articulate the amount and 
14.29 	scope of service offered to children of limited English proficiency through an educational 
14.30 	program for children of limited English proficiency;
14.31 	(3) professional development opportunities for ESL, bilingual education, 
14.32 	mainstream, and all staff working with children of limited English proficiency which are: 
14.33 	(i) coordinated with the district's professional development activities; (ii) related to the 
14.34 	needs of children of limited English proficiency; and (iii) ongoing;
15.1 	(4) to the extent possible, the district must avoid isolating children of limited English 
15.2 	proficiency for a substantial part of the school day; and
15.3 	(2) (5) in predominantly nonverbal subjects, such as art, music, and physical 
15.4 	education, permit pupils of limited English proficiency shall be permitted to participate 
15.5 	fully and on an equal basis with their contemporaries in public school classes provided 
15.6 	for these subjects. To the extent possible, the district must assure to pupils enrolled in a 
15.7 	program for limited English proficient students an equal and meaningful opportunity to 
15.8 	participate fully with other pupils in all extracurricular activities.

15.9 	Sec. 8. Laws 2005, First Special Session chapter 5, article 2, section 81, is amended to 
15.10 	read:
15.11 	Sec. 81.  BOARD OF SCHOOL ADMINISTRATORS; RULEMAKING 
15.12 	AUTHORITY.
15.13 	
15.14 	On or before June 30, 2007, the Board of School  Administrators may adopt 
15.15 	expedited rules under Minnesota  Statutes, section 14.389, to reflect the changes in duties, 
15.16 	responsibilities, and roles of school administrators, and to make technical revisions and  
15.17 	clarifications to Minnesota Rules, chapter 3512.  

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

15.19 	Sec. 9. Laws 2005, First Special Session chapter 5, article 2, section 84, subdivision 
15.20 	13, is amended to read:
15.21 	
15.22 	Subd. 13.  Examination fees; teacher training and support programs. (a) For 
15.23 	students' advanced placement and  international baccalaureate examination fees under 
15.24 	Minnesota  Statutes, section 120B.13, subdivision 3, and the training and  related costs 
15.25 	for teachers and other interested educators under  Minnesota Statutes, section 120B.13, 
15.26 	subdivision 1:  

15.27		$
	4,500,000
	.....
	2006
	
15.28		$
	4,500,000
	.....
	2007
	
15.29 	
15.30 	(b) The advanced placement program shall receive 75 percent  of the appropriation 
15.31 	each year and the international  baccalaureate program shall receive 25 percent of the  
15.32 	appropriation each year.  The department, in consultation with  representatives of the 
15.33 	advanced placement and international  baccalaureate programs selected by the Advanced 
16.1 	Placement  Advisory Council and IBMN, respectively, shall determine the  amounts of 
16.2 	the expenditures each year for examination fees and  training and support programs for 
16.3 	each program.  
16.4 	
16.5 	(c) Notwithstanding Minnesota Statutes, section 120B.13,  subdivision 1, at least 
16.6 	$500,000 each year is for teachers to  attend subject matter summer training programs 
16.7 	and follow-up  support workshops approved by the advanced placement or  international 
16.8 	baccalaureate programs.  The amount of the subsidy  for each teacher attending an 
16.9 	advanced placement or  international baccalaureate summer training program or workshop 
16.10 	shall be the same.  The commissioner shall determine the payment  process and the amount 
16.11 	of the subsidy.
16.12 	
16.13 	(d) The commissioner shall pay all examination fees for all  students of low-income 
16.14 	families under Minnesota Statutes,  section 120B.13, subdivision 3, and to the extent 
16.15 	of available  appropriations shall also pay examination fees for students  sitting for an 
16.16 	advanced placement examination, international  baccalaureate examination, or both.  
16.17 	
16.18 	Any balance in the first year does not cancel but is  available in the second year.  
16.19 	

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

16.21 	Sec. 10. SCIENCE TEACHERS.
 16.22 	(a) A tenured science teacher holding a Minnesota professional license in grades 
16.23 	7 to 12 or 9 to 12 who receives a qualifying score on the appropriate Praxis II test in a 
16.24 	grade 9 to 12 science field other than the currently licensed science field must be licensed 
16.25 	to teach in the new subject area. The qualifying scores are the same scores used for new 
16.26 	science teachers established by the Minnesota Board of Teaching. The science teacher 
16.27 	who seeks licensure in another science subject area under this paragraph is responsible for 
16.28 	the costs of the required testing.
16.29 	(b) For the purposes of paragraph (a), science subject areas include chemistry, 
16.30 	physics, biology, and earth and space science.
16.31 	(c) By December 31, 2010, the Department of Education and Board of Teaching 
16.32 	must submit a report, including at least the effects of this section on science teacher quality 
16.33 	and developing highly qualified teachers, to the committees of the house of representatives 
16.34 	and senate having jurisdiction over kindergarten through grade 12 education.

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

17.2 	ARTICLE 3
17.3 	SPECIAL PROGRAMS 

17.4 	Section 1. Minnesota Statutes 2004, section 125A.091, subdivision 5, is amended to 
17.5 	read:
17.6 		Subd. 5.Initial action; parent Parental  consent. (a) The district must not proceed 
17.7 	with the initial evaluation of a child, the initial placement of a child in a special education 
17.8 	program, or the initial provision of special education services for a child without the prior 
17.9 	written consent of the child's parent. A district may not override the written refusal of a 
17.10 	parent to consent to an initial evaluation or reevaluation. Except as provided in paragraph 
17.11 	(c), a district proposing to conduct an initial evaluation to determine whether a child is a 
17.12 	child with a disability must obtain informed written consent from the parent of the child 
17.13 	before conducting new, individualized testing as part of the evaluation. Parental consent 
17.14 	for initial evaluation is not consent for initial provision of special education and related 
17.15 	services.
17.16 	(b) A parent, after consulting with health care, education, or other professional 
17.17 	providers, may agree or disagree to provide the parent's child with sympathomimetic 
17.18 	medications unless section  144.344 applies. 
17.19 	(c) If the parent of a child enrolled or seeking to be enrolled in public school does 
17.20 	not provide consent for initial evaluation, or the parent fails to respond to a request to 
17.21 	provide consent, the district must pursue the initial evaluation of the child by utilizing 
17.22 	the procedural safeguards in this chapter including mediation or other alternative dispute 
17.23 	resolution or, if necessary, a due process hearing. 
17.24 	(d) A district responsible for making a free appropriate public education available to 
17.25 	a child with a disability must seek to obtain informed written consent before the initial 
17.26 	provision of special education and related services to the child.
17.27 	(e) If the parent of a child with a disability does not consent to the initial provision 
17.28 	of special education and related services, the district may not pursue a due process hearing 
17.29 	to obtain permission to provide special education and related services. When a parent does 
17.30 	not provide consent for initial services, the district is not in violation of the requirement 
17.31 	to make a free appropriate public education available except where the district did not 
17.32 	seek consent.
17.33 	(f) A district must seek to obtain informed written consent from a parent of the child 
17.34 	before conducting new, individualized testing as part of the reevaluation. This testing 
17.35 	may proceed without consent if the district can demonstrate that: (1) it took reasonable 
18.1 	measures to obtain consent, and (2) the child's parent failed to respond. If no parental 
18.2 	consent for a reevaluation is obtained because the parents object to the reevaluation, the 
18.3 	district may, if necessary, pursue the reevaluation of the child by utilizing the procedural 
18.4 	safeguards in this chapter including mediation or other alternative dispute resolution 
18.5 	or a due process hearing.

18.6 	Sec. 2. Minnesota Statutes 2004, section 125A.091, subdivision 7, is amended to read:
18.7 		Subd. 7.Conciliation conference. A parent must have an opportunity to meet 
18.8 	with appropriate district staff in at least one conciliation conference if the parent objects 
18.9 	to any proposal of which the parent receives notice under subdivision 2. If the parent 
18.10 	refuses district efforts to conciliate the dispute, the conciliation requirement is satisfied. 
18.11 	Following a conciliation conference, the district must prepare and provide to the parent 
18.12 	a conciliation conference memorandum that describes the district's final proposed offer 
18.13 	of service. This memorandum is admissible in evidence in any subsequent proceeding.
18.14 	If a conciliation conference occurs, the requirement for a resolution meeting under 
18.15 	subdivision 14 is satisfied and a parent or district may proceed directly to a due process 
18.16 	hearing upon request.

18.17 	Sec. 3. Minnesota Statutes 2004, section 125A.091, subdivision 9, is amended to read:
18.18 		Subd. 9.Mediation. Mediation is a dispute resolution process that involves a 
18.19 	neutral party provided by the state to assist a parent and a district in resolving disputes over 
18.20 	the identification, evaluation, educational placement, manifestation determination, interim 
18.21 	alternative educational placement, or the provision of a free appropriate public education 
18.22 	to a child with a disability. A mediation process is available as an informal alternative to a 
18.23 	due process hearing but must not be used to deny or postpone the opportunity of a parent 
18.24 	or district to obtain a due process hearing. Mediation is voluntary for all parties. After a 
18.25 	due process hearing is requested, a party may request mediation and the commissioner 
18.26 	must provide a mediator to conduct the mediation session no later than the third business 
18.27 	day after the commissioner receives the mediation request. All mediation discussions are 
18.28 	confidential and inadmissible in evidence in any subsequent proceeding, unless the:
18.29 	(1) parties expressly agree otherwise;
18.30 	(2) evidence is otherwise available; or
18.31 	(3) evidence is offered to prove bias or prejudice of a witness.

18.32 	Sec. 4. Minnesota Statutes 2004, section 125A.091, subdivision 10, is amended to read:
19.1 		Subd. 10.Mediated agreements. Mediated agreements must be in writing and 
19.2 	signed by a parent and representative of the district who has authority to bind the district. 
19.3 	The agreement is enforceable in state district court, including conciliation court, or 
19.4 	in federal district court under federal law. Agreements are not admissible in a due 
19.5 	process hearing unless the parties agree otherwise or a party to the agreement believes 
19.6 	the agreement is not being implemented, in which case the aggrieved party may enter 
19.7 	the agreement into evidence at a due process hearing. The parties may request another 
19.8 	mediation to resolve a dispute over implementing the mediated agreement. After a due 
19.9 	process hearing is requested, a party may request mediation and the commissioner must 
19.10 	provide a mediator who conducts a mediation session no later than the third business day 
19.11 	after the mediation request is made to the commissioner.

19.12 	Sec. 5. Minnesota Statutes 2004, section 125A.091, subdivision 12, is amended to read:
19.13 		Subd. 12.Impartial due process hearing. (a) A parent or a district is may be 
19.14 	 entitled to an impartial due process hearing conducted by the state when a dispute arises 
19.15 	over the identification, evaluation, educational placement, manifestation determination, 
19.16 	interim alternative educational placement, or the provision of a free appropriate public 
19.17 	education to a child with a disability. The dispute must be based on an alleged violation 
19.18 	occurring within the two years before the date the parent or district knew or should have 
19.19 	known about the alleged action that forms the basis of the dispute. This timeline does not 
19.20 	apply to a parent if the parent was prevented from filing for a hearing due to:
19.21 	(1) specific misrepresentations by the district that it had resolved the problem 
19.22 	forming the basis of the complaint; or
19.23 	(2) the district's withholding of information, such as procedural safeguards and prior 
19.24 	written notice, required to be provided to the parent.
19.25 	The hearing must be held in the district responsible for ensuring that a free appropriate 
19.26 	public education is provided according to state and federal law. The proceedings must be 
19.27 	recorded and preserved, at state expense, pending ultimate disposition of the action.
19.28 	(b) The due process hearing must be conducted according to the rules of the 
19.29 	commissioner and federal law.

19.30 	Sec. 6. Minnesota Statutes 2004, section 125A.091, subdivision 13, is amended to read:
19.31 		Subd. 13.Hearing officer qualifications. The commissioner must appoint an 
19.32 	individual who is qualified under this subdivision to serve as a hearing officer. The 
19.33 	hearing officer must:
19.34 	(1) be knowledgeable and impartial;
20.1 	(2) have no personal interest in or specific involvement with the student who is a 
20.2 	party to the hearing;
20.3 	(3) not have been employed as an administrator by the district that is a party to 
20.4 	the hearing;
20.5 	(4) not have been involved in selecting the district administrator who is a party 
20.6 	to the hearing;
20.7 	(5) have no personal, economic, or professional interest in the outcome of the 
20.8 	hearing other than properly administering federal and state laws, rules, and policies;
20.9 	(6) have no substantial involvement in developing state or local policies or 
20.10 	procedures challenged in the hearing possess the knowledge and ability to conduct 
20.11 	hearings and write decisions in accordance with appropriate, standard legal practice;
20.12 	(7) not be a current employee or board member of a Minnesota public school district, 
20.13 	education district, intermediate unit or regional education agency, or the department if 
20.14 	the department is the service provider; and
20.15 	(8) not be a current employee or board member of a disability advocacy organization 
20.16 	or group.
20.17 	A party may disqualify a hearing officer only by affirmatively showing prejudice or 
20.18 	bias to the commissioner or to the chief administrative law judge if the hearing officer is 
20.19 	an administrative law judge. If a party affirmatively shows prejudice against a hearing 
20.20 	officer, the commissioner must assign another hearing officer to hear the matter.

20.21 	Sec. 7. Minnesota Statutes 2004, section 125A.091, subdivision 14, is amended to read:
20.22 		Subd. 14.Request for hearing and resolution meeting. (a) A request for a due 
20.23 	process hearing must: be made under Minnesota Rules.
20.24 	(1) be in writing;
20.25 	(2) describe the nature of the dispute about providing special education services to 
20.26 	the student including facts relating to the dispute; and
20.27 	(3) state, to the extent known, the relief sought.
20.28 	Any school district administrator receiving a request for a due process hearing 
20.29 	must immediately forward the request to the commissioner. Within two business days of 
20.30 	receiving a request for a due process hearing, the commissioner must appoint a hearing 
20.31 	officer. The commissioner must not deny a request for hearing because the request 
20.32 	is incomplete. A party may disqualify a hearing officer only by affirmatively showing 
20.33 	prejudice or bias to the commissioner or to the chief administrative law judge if the 
20.34 	hearing officer is an administrative law judge. If a party affirmatively shows prejudice 
20.35 	against a hearing officer, the commissioner must assign another hearing officer to hear the 
21.1 	matter. Within 15 days of receiving notice of the parent's request for hearing, and prior to 
21.2 	initiation of the 45-day deadline for a final decision, the district must convene a meeting 
21.3 	with the parent and the relevant member or members of the IEP team, as determined by 
21.4 	the parent and the district, who have specific knowledge of the facts identified in the 
21.5 	request for hearing that:
21.6 	(1) includes a representative of the district who has decision-making authority on 
21.7 	behalf of the district; and
21.8 	(2) may not include an attorney of the district unless the parent is accompanied 
21.9 	by an attorney.
21.10 	(b) The purpose of the meeting is for the parent of the child to discuss the complaint 
21.11 	and the facts that form the basis of the hearing request, so that the district has the 
21.12 	opportunity to resolve the dispute. This meeting need not be held if:
21.13 	(1) a conciliation conference on the matter has already occurred;
21.14 	(2) the parent and district agree in writing to waive the meeting; or
21.15 	(3) the parent and district agree to attempt mediation.
21.16 	(c) If the district has not resolved the matter to the satisfaction of the parent within 
21.17 	30 days of receipt of the request for hearing, the 45-day timeline for a final decision 
21.18 	begins on the 31st day. Notwithstanding the exceptions under this subdivision, the failure 
21.19 	of a parent to participate in at least one resolution meeting will delay the timelines for 
21.20 	the resolution process and due process hearing until the meeting is held. If a resolution is 
21.21 	reached as a result of the resolution meeting, the parties must execute a legally binding 
21.22 	written agreement that is:
21.23 	(1) signed by both the parent and a representative of the district who has the 
21.24 	authority to bind the district; and
21.25 	(2) enforceable in state district court, including a conciliation court, or federal 
21.26 	district court, pursuant to federal law.
21.27 	(d) Either party may void the agreement in writing, with the recission served on the 
21.28 	other party within three business days of the agreement's execution.

21.29 	Sec. 8. Minnesota Statutes 2004, section 125A.091, subdivision 15, is amended to read:
21.30 		Subd. 15.Prehearing conference. A prehearing conference must be held within 
21.31 	five business seven  days of the date the commissioner appoints the hearing officer 45-day 
21.32 	timeline for a final decision begins to run under subdivision 14. The hearing officer must 
21.33 	initiate the prehearing conference which may be conducted in person, at a location within 
21.34 	the district, or by telephone. The hearing officer must create a written verbatim record 
22.1 	of the prehearing conference which is available to either party upon request. At the 
22.2 	prehearing conference, the hearing officer must:
22.3 	(1) identify the questions that must be answered to resolve the dispute and eliminate 
22.4 	claims and complaints that are without merit;
22.5 	(2) set a scheduling order for the hearing and additional prehearing activities;
22.6 	(3) determine if the hearing can be disposed of without an evidentiary hearing and, if 
22.7 	so, establish the schedule and procedure for doing so; and
22.8 	(4) establish the management, control, and location of the hearing to ensure its fair, 
22.9 	efficient, and effective disposition.

22.10 	Sec. 9. Minnesota Statutes 2004, section 125A.091, subdivision 19, is amended to read:
22.11 		Subd. 19.Expedited due process hearings. A parent has the right to an expedited 
22.12 	due process hearing when there is a dispute over a manifestation determination or a 
22.13 	proposed or actual placement in an interim alternative educational setting. A district has 
22.14 	the right to an expedited due process hearing when proposing or seeking to maintain 
22.15 	placement in an interim alternative educational setting. A hearing officer must hold an 
22.16 	expedited due process hearing and must issue a decision within ten calendar days of the 
22.17 	request for a hearing. A hearing officer may extend by up to five additional calendar 
22.18 	days the time for issuing a decision in an expedited due process hearing. All policies in 
22.19 	this section apply to expedited due process hearings to the extent they do not conflict 
22.20 	with federal law this subdivision.

22.21 	Sec. 10. Minnesota Statutes 2004, section 125A.091, subdivision 20, is amended to 
22.22 	read:
22.23 		Subd. 20.Hearing officer's decision; time period. (a) The hearing officer must 
22.24 	issue a decision within 45 calendar days of the expiration of the 30-day resolution process 
22.25 	period or, if a conciliation conference has been held concerning the matter upon which 
22.26 	the request is based, within 45 days of the date on which the commissioner receives 
22.27 	the request for a due process hearing. A hearing officer is encouraged to accelerate the 
22.28 	time line to 30 days for a child under the age of three whose needs change rapidly and 
22.29 	who requires quick resolution of a dispute. A hearing officer may not extend the time 
22.30 	beyond the 45-day period unless requested by either party for good cause shown on the 
22.31 	record. Extensions of time must not exceed a total of 30 calendar days unless both parties 
22.32 	and the hearing officer agree or time is needed to complete an independent educational 
22.33 	evaluation. Good cause includes, but is not limited to, the time required for mediation or 
23.1 	other settlement discussions, independent educational evaluation, complexity and volume 
23.2 	of issues, or finding or changing counsel.
23.3 	(b) The hearing officer's decision must:
23.4 	(1) be in writing;
23.5 	(2) state the controlling and material facts upon which the decision is made in order 
23.6 	to apprise the reader of the basis and reason for the decision; and
23.7 	(3) be based on local standards, state statute, the rules of the commissioner, and 
23.8 	federal law.

23.9 	Sec. 11. Minnesota Statutes 2005 Supplement, section 125A.11, subdivision 1, is 
23.10 	amended to read:
23.11 		Subdivision 1.Nonresident tuition rate; other costs. (a) For fiscal year 2006, 
23.12 	when a school district provides instruction and services outside the district of residence, 
23.13 	board and lodging, and any tuition to be paid, shall be paid by the district of residence. The 
23.14 	tuition rate to be charged for any child with a disability, excluding a pupil for whom tuition 
23.15 	is calculated according to section 127A.47, subdivision 7, paragraph (d), must be the sum 
23.16 	of (1) the actual cost of providing special instruction and services to the child including 
23.17 	a proportionate amount for special transportation and unreimbursed building lease and 
23.18 	debt service costs for facilities used primarily for special education, plus (2) the amount 
23.19 	of general education revenue and referendum aid attributable to the pupil, minus (3) the 
23.20 	amount of special education aid for children with a disability received on behalf of that 
23.21 	child, minus (4) if the pupil receives special instruction and services outside the regular 
23.22 	classroom for more than 60 percent of the school day, the amount of general education 
23.23 	revenue and referendum aid, excluding portions attributable to district and school 
23.24 	administration, district support services, operations and maintenance, capital expenditures, 
23.25 	and pupil transportation, attributable to that pupil for the portion of time the pupil receives 
23.26 	special instruction in and services outside  the regular classroom. If the boards involved 
23.27 	do not agree upon the tuition rate, either board may apply to the commissioner to fix the 
23.28 	rate. Notwithstanding chapter 14, the commissioner must then set a date for a hearing or 
23.29 	request a written statement from each board, giving each board at least ten days' notice, 
23.30 	and after the hearing or review of the written statements the commissioner must make an 
23.31 	order fixing the tuition rate, which is binding on both school districts. General education 
23.32 	revenue and referendum aid attributable to a pupil must be calculated using the resident 
23.33 	district's average general education and referendum revenue per adjusted pupil unit.
23.34 	(b) For fiscal year 2007 and later, when a school district provides special instruction 
23.35 	and services for a pupil with a disability as defined in section 125A.02 outside the district 
24.1 	of residence, excluding a pupil for whom an adjustment to special education aid is 
24.2 	calculated according to section 127A.47, subdivision 7, paragraph (e), special education 
24.3 	aid paid to the resident district must be reduced by an amount equal to (1) the actual 
24.4 	cost of providing special instruction and services to the pupil, including a proportionate 
24.5 	amount for special transportation and unreimbursed building lease and debt service costs 
24.6 	for facilities used primarily for special education, plus (2) the amount of general education 
24.7 	revenue and referendum aid attributable to that pupil, minus (3) the amount of special 
24.8 	education aid for children with a disability received on behalf of that child, minus (4) if the 
24.9 	pupil receives special instruction and services outside the regular classroom for more than 
24.10 	60 percent of the school day, the amount of general education revenue and referendum 
24.11 	aid, excluding portions attributable to district and school administration, district support 
24.12 	services, operations and maintenance, capital expenditures, and pupil transportation, 
24.13 	attributable to that pupil for the portion of time the pupil receives special  instruction in
24.14 	and services outside  the regular classroom. General education revenue and referendum 
24.15 	aid attributable to a pupil must be calculated using the resident district's average general 
24.16 	education revenue and referendum aid per adjusted pupil unit. Special education aid 
24.17 	paid to the district or cooperative providing special instruction and services for the pupil 
24.18 	must be increased by the amount of the reduction in the aid paid to the resident district. 
24.19 	Amounts paid to cooperatives under this subdivision and section 127A.47, subdivision 
24.20 	7, shall be recognized and reported as revenues and expenditures on the resident school 
24.21 	district's books of account under sections 123B.75 and 123B.76. If the resident district's 
24.22 	special education aid is insufficient to make the full adjustment, the remaining adjustment 
24.23 	shall be made to other state aid due to the district.
24.24 	(c) Notwithstanding paragraphs (a) and (b) and section 127A.47, subdivision 7, 
24.25 	paragraphs (d) and (e), a charter school where more than 30 percent of enrolled students 
24.26 	receive special education and related services, an intermediate district, or a special 
24.27 	education cooperative may apply to the commissioner for authority to charge the resident 
24.28 	district an additional amount to recover any remaining unreimbursed costs of serving 
24.29 	pupils with a disability. The application must include a description of the costs and the 
24.30 	calculations used to determine the unreimbursed portion to be charged to the resident 
24.31 	district. Amounts approved by the commissioner under this paragraph must be included 
24.32 	in the tuition billings or aid adjustments under paragraph (a) or (b), or section 127A.47, 
24.33 	subdivision 7, paragraph (d) or (e), as applicable.

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

24.35 	Sec. 12. Minnesota Statutes 2004, section 125A.27, subdivision 11, is amended to read:
25.1 		Subd. 11.Interagency child find systems. "Interagency child find systems" 
25.2 	means activities developed on an interagency basis with the involvement of interagency 
25.3 	early intervention committees and other relevant community groups using rigorous 
25.4 	standards  to actively seek out, identify, and refer infants and young children,  with, or at 
25.5 	risk of, disabilities, and their families, including a child under the age of three who: (1) 
25.6 	is involved in a substantiated case of abuse or neglect, or (2) is identified as affected by 
25.7 	illegal substance abuse, or withdrawal symptoms resulting from prenatal drug exposure, to 
25.8 	reduce the need for future services.

25.9 	Sec. 13. Minnesota Statutes 2005 Supplement, section 125A.28, is amended to read:
25.10 	125A.28 STATE INTERAGENCY COORDINATING COUNCIL.
25.11 	An Interagency Coordinating Council of at least 17, but not more than 25 members
25.12 	is established, in compliance with Public Law 102-119 108-446, section 682 641. The 
25.13 	members must be appointed by the governor. Council members must elect the council 
25.14 	chair. The representative of the commissioner may not serve as the chair. The council 
25.15 	must be composed of at least five parents, including persons of color, of children with 
25.16 	disabilities under age 12, including at least three parents of a child with a disability 
25.17 	under age seven, five representatives of public or private providers of services for 
25.18 	children with disabilities under age five, including a special education director, county 
25.19 	social service director, local Head Start director, and a community health services or 
25.20 	public health nursing administrator, one member of the senate, one member of the 
25.21 	house of representatives, one representative of teacher preparation programs in early 
25.22 	childhood-special education or other preparation programs in early childhood intervention, 
25.23 	at least one representative of advocacy organizations for children with disabilities 
25.24 	under age five, one physician who cares for young children with special health care 
25.25 	needs, one representative each from the commissioners of commerce, education, health, 
25.26 	human services, a representative from the state agency responsible for child care, and a 
25.27 	representative from Indian health services or a tribal council. Section 15.059, subdivisions 
25.28 	2 to 5, apply to the council. The council must meet at least quarterly.
25.29 	The council must address methods of implementing the state policy of developing 
25.30 	and implementing comprehensive, coordinated, multidisciplinary interagency programs of 
25.31 	early intervention services for children with disabilities and their families.
25.32 	The duties of the council include recommending policies to ensure a comprehensive 
25.33 	and coordinated system of all state and local agency services for children under age five 
25.34 	with disabilities and their families. The policies must address how to incorporate each 
25.35 	agency's services into a unified state and local system of multidisciplinary assessment 
26.1 	practices, individual intervention plans, comprehensive systems to find children in need of 
26.2 	services, methods to improve public awareness, and assistance in determining the role of 
26.3 	interagency early intervention committees.
26.4 	On the date that Minnesota Part C Annual Performance Report is submitted to the 
26.5 	federal Office of Special Education, the council must recommend to the governor and the 
26.6 	commissioners of education, health, human services, commerce, and employment and 
26.7 	economic development policies for a comprehensive and coordinated system.
26.8 	Notwithstanding any other law to the contrary, the State Interagency Coordinating 
26.9 	Council expires on June 30, 2009.

26.10 	Sec. 14. Minnesota Statutes 2004, section 125A.29, is amended to read:
26.11 	125A.29 RESPONSIBILITIES OF COUNTY BOARDS AND SCHOOL 
26.12 	BOARDS.
26.13 	(a) It is the joint responsibility of county boards and school boards to coordinate, 
26.14 	provide, and pay for appropriate services, and to facilitate payment for services from public 
26.15 	and private sources. Appropriate services for children eligible under section  125A.02 must 
26.16 	be determined in consultation with parents, physicians, and other educational, medical, 
26.17 	health, and human services providers. The services provided must be in conformity with:
26.18 	(1)  an IFSP for each eligible infant and toddler from birth through age two and its
26.19 	the infant's or toddler's  family, including:
26.20 	(i) Indian infants and toddlers with disabilities and their families residing on a 
26.21 	reservation geographically located in the state;
26.22 	(ii) infants and toddlers with disabilities who are homeless children and their 
26.23 	families; and
26.24 	(iii) infants and toddlers with disabilities who are wards of the state;  or 
26.25 	(2) an individual education plan (IEP) or individual service plan (ISP) for each 
26.26 	eligible child ages three through four. 
26.27 	(b) Appropriate services include family education and counseling, home visits, 
26.28 	occupational and physical therapy, speech pathology, audiology, psychological services, 
26.29 	special instruction, nursing, respite, nutrition, assistive technology, transportation 
26.30 	and related costs, social work, vision services, case management including service 
26.31 	coordination under section  125A.33, medical services for diagnostic and evaluation 
26.32 	purposes, early identification, and screening, assessment, and health services necessary to 
26.33 	enable children with disabilities to benefit from early intervention services. 
27.1 	(c) School and county boards shall coordinate early intervention services. In the 
27.2 	absence of agreements established according to section  125A.39, service responsibilities 
27.3 	for children birth through age two are as follows: 
27.4 	(1) school boards must provide, pay for, and facilitate payment for special education 
27.5 	and related services required under sections  125A.05 and  125A.06; 
27.6 	(2) county boards must provide, pay for, and facilitate payment for noneducational 
27.7 	services of social work, psychology, transportation and related costs, nursing, respite, and 
27.8 	nutrition services not required under clause (1).
27.9 	(d) School and county boards may develop an interagency agreement according 
27.10 	to section  125A.39 to establish agency responsibility that assures early intervention 
27.11 	services are coordinated, provided, paid for, and that payment is facilitated from public 
27.12 	and private sources. 
27.13 	(e) County and school boards must jointly determine the primary agency in this 
27.14 	cooperative effort and must notify the commissioner of the state lead agency of their 
27.15 	decision.

27.16 	Sec. 15. Minnesota Statutes 2004, section 125A.30, is amended to read:
27.17 	125A.30 INTERAGENCY EARLY INTERVENTION COMMITTEES.
27.18 	(a) A school district, group of districts, or special education cooperative, in 
27.19 	cooperation with the health and human service agencies located in the county or counties 
27.20 	in which the district or cooperative is located, must establish an Interagency Early 
27.21 	Intervention Committee for children with disabilities under age five and their families 
27.22 	under this section, and for children with disabilities ages three to 22 consistent with 
27.23 	the requirements under sections  125A.023 and  125A.027. Committees must include 
27.24 	representatives of local health, education, and county human service agencies, county 
27.25 	boards, school boards, early childhood family education programs, Head Start, parents of 
27.26 	young children with disabilities under age 12, child care resource and referral agencies, 
27.27 	school readiness programs, current service providers, and may also include representatives 
27.28 	from other private or public agencies and school nurses. The committee must elect a chair 
27.29 	from among its members and must meet at least quarterly. 
27.30 	(b) The committee must develop and implement interagency policies and procedures 
27.31 	concerning the following ongoing duties:
27.32 	(1) develop public awareness systems designed to inform potential recipient 
27.33 	families, especially parents with premature infants, or infants with other physical risk 
27.34 	factors associated with learning or development complications,  of available programs 
27.35 	and services;
28.1 	(2) implement interagency child find systems designed to actively seek out, identify, 
28.2 	and refer infants and young children with, or at risk of, disabilities, including a child under 
28.3 	the age of three who: (i) is involved in a substantiated case of abuse or (ii) is identified 
28.4 	as affected by illegal substance abuse, or withdrawal symptoms resulting from prenatal 
28.5 	drug exposure; to reduce the need for future services;  and their families, especially parents 
28.6 	with premature infants, or infants with other physical risk factors associated with learning 
28.7 	or development complications;
28.8 	(3) establish and evaluate the identification, referral, child and family assessment 
28.9 	systems, procedural safeguard process, and community learning systems to recommend, 
28.10 	where necessary, alterations and improvements;
28.11 	(4) assure the development of individualized family service plans for all eligible 
28.12 	infants and toddlers with disabilities from birth through age two, and their families, and 
28.13 	individual education plans and individual service plans when necessary to appropriately 
28.14 	serve children with disabilities, age three and older, and their families and recommend 
28.15 	assignment of financial responsibilities to the appropriate agencies;
28.16 	(5) encourage agencies to develop individual family service plans for children with 
28.17 	disabilities, age three and older;
28.18 	(6) implement a process for assuring that services involve cooperating agencies at all 
28.19 	steps leading to individualized programs;
28.20 	(7) (6)  facilitate the development of a transitional plan if a service provider is not 
28.21 	recommended to continue to provide services;
28.22 	(8) (7)  identify the current services and funding being provided within the 
28.23 	community for children with disabilities under age five and their families;
28.24 	(9)(8) develop a plan for the allocation and expenditure of additional state and 
28.25 	federal early intervention funds under United States Code, title 20, section 1471 et seq. 
28.26 	(Part C, Public Law 102-119 108-446) and United States Code, title 20, section 631, et 
28.27 	seq. (Chapter I, Public Law 89-313); and
28.28 	(10) (9)  develop a policy that is consistent with section  13.05, subdivision 9, and 
28.29 	federal law to enable a member of an interagency early intervention committee to allow 
28.30 	another member access to data classified as not public. 
28.31 	(c) The local committee shall also:
28.32 	(1) participate in needs assessments and program planning activities conducted by 
28.33 	local social service, health and education agencies for young children with disabilities and 
28.34 	their families; and
28.35 	(2) review and comment on the early intervention section of the total special 
28.36 	education system for the district, the county social service plan, the section or sections of 
29.1 	the community health services plan that address needs of and service activities targeted 
29.2 	to children with special health care needs, the section on children with special needs in 
29.3 	the county child care fund plan, sections in Head Start plans on coordinated planning and 
29.4 	services for children with special needs, any relevant portions of early childhood education 
29.5 	plans, such as early childhood family education or school readiness, or other applicable 
29.6 	coordinated school and community plans for early childhood programs and services, and 
29.7 	the section of the maternal and child health special project grants that address needs of and 
29.8 	service activities targeted to children with chronic illness and disabilities.

29.9 	Sec. 16. Minnesota Statutes 2004, section 125A.32, is amended to read:
29.10 	125A.32 INDIVIDUALIZED FAMILY SERVICE PLAN.
29.11 	(a) A team must participate in IFSP meetings to develop the IFSP. The team shall 
29.12 	include:
29.13 	(1) a parent or parents of the child;
29.14 	(2) other family members, as requested by the parent, if feasible to do so;
29.15 	(3) an advocate or person outside of the family, if the parent requests that the 
29.16 	person participate;
29.17 	(4) the service coordinator who has been working with the family since the 
29.18 	initial referral, or who has been designated by the public agency to be responsible for 
29.19 	implementation of the IFSP and coordination with other agencies including transition 
29.20 	services; and
29.21 	(5) a person or persons involved in conducting evaluations and assessments.
29.22 	(b) The IFSP must include:
29.23 	(1) information about the child's developmental status;
29.24 	(2) family information, with the consent of the family;
29.25 	(3) measurable results or major outcomes expected to be achieved by the child and 
29.26 	the family that include preliteracy and language skills, as developmentally appropriate 
29.27 	for the child, and the criteria, procedures, and timelines;
29.28 	(4) specific early intervention services based on peer-reviewed research, to the 
29.29 	extent practicable, necessary to meet the unique needs of the child and the family to 
29.30 	achieve the outcomes;
29.31 	(5) payment arrangements, if any;
29.32 	(6) medical and other services that the child needs, but that are not required under 
29.33 	the Individual with Disabilities Education Act, United States Code, title 20, section 1471 
29.34 	et seq. (Part C, Public Law 102-119 108-446) including funding sources to be used in 
30.1 	paying for those services and the steps that will be taken to secure those services through 
30.2 	public or private sources;
30.3 	(7) dates and duration of early intervention services;
30.4 	(8) name of the service coordinator;
30.5 	(9) steps to be taken to support a child's transition from early intervention services to 
30.6 	other appropriate services, including convening a transition conference at least 90 days, or 
30.7 	at the discretion of all parties, not more than nine months prior to the child's eligibility for 
30.8 	preschool services; and
30.9 	(10) signature of the parent and authorized signatures of the agencies responsible 
30.10 	for providing, paying for, or facilitating payment, or any combination of these, for early 
30.11 	intervention services.

30.12 	Sec. 17. Minnesota Statutes 2004, section 125A.33, is amended to read:
30.13 	125A.33 SERVICE COORDINATION.
30.14 	(a) The team developing the IFSP under section  125A.32 must select a service 
30.15 	coordinator to carry out service coordination activities on an interagency basis. Service 
30.16 	coordination must actively promote a family's capacity and competency to identify, 
30.17 	obtain, coordinate, monitor, and evaluate resources and services to meet the family's 
30.18 	needs. Service coordination activities include: 
30.19 	(1) coordinating the performance of evaluations and assessments;
30.20 	(2) facilitating and participating in the development, review, and evaluation of 
30.21 	individualized family service plans;
30.22 	(3) assisting families in identifying available service providers;
30.23 	(4) coordinating and monitoring the delivery of available services;
30.24 	(5) informing families of the availability of advocacy services;
30.25 	(6) coordinating with medical, health, and other service providers;
30.26 	(7) facilitating the development of a transition plan at least 90 days before the time 
30.27 	the child is no longer eligible for early intervention services, or at the discretion of all 
30.28 	parties, not more than nine months prior to the child's eligibility for preschool services, 
30.29 	if appropriate;
30.30 	(8) managing the early intervention record and submitting additional information to 
30.31 	the local primary agency at the time of periodic review and annual evaluations; and
30.32 	(9) notifying a local primary agency when disputes between agencies impact service 
30.33 	delivery required by an IFSP.
31.1 	(b) A service coordinator must be knowledgeable about children and families 
31.2 	receiving services under this section, requirements of state and federal law, and services 
31.3 	available in the interagency early childhood intervention system.

31.4 	Sec. 18. Minnesota Statutes 2004, section 125A.48, is amended to read:
31.5 	125A.48 STATE INTERAGENCY AGREEMENT.
31.6 	(a) The commissioners of the Departments of Education, Health, and Human 
31.7 	Services must enter into an agreement to implement this section and Part H C, Public 
31.8 	Law 102-119 108-446, and as required by Code of Federal Regulations, title 34, section  
31.9 	303.523, to promote the development and implementation of interagency, coordinated, 
31.10 	multidisciplinary state and local early childhood intervention service systems for serving 
31.11 	eligible young children with disabilities, birth through age two, and their families and 
31.12 	to ensure the meaningful involvement of underserved groups, including minority, 
31.13 	low-income, homeless, and rural families and children with disabilities who are wards 
31.14 	of the state. The agreement must be reviewed annually. 
31.15 	(b) The state interagency agreement must outline at a minimum the conditions, 
31.16 	procedures, purposes, and responsibilities of the participating state and local agencies 
31.17 	for the following:
31.18 	(1) membership, roles, and responsibilities of a state interagency committee for 
31.19 	the oversight of priorities and budget allocations under Part H C, Public Law 102-119
31.20 	108-446, and other state allocations for this program;
31.21 	(2) child find;
31.22 	(3) establishment of local interagency agreements;
31.23 	(4) review by a state interagency committee of the allocation of additional state and 
31.24 	federal early intervention funds by local agencies;
31.25 	(5) fiscal responsibilities of the state and local agencies;
31.26 	(6) intraagency and interagency dispute resolution;
31.27 	(7) payor of last resort;
31.28 	(8) maintenance of effort;
31.29 	(9) procedural safeguards, including mediation;
31.30 	(10) complaint resolution;
31.31 	(11) quality assurance;
31.32 	(12) data collection;
31.33 	(13) an annual summary to the state Interagency Coordinating Council regarding 
31.34 	conflict resolution activities including disputes, due process hearings, and complaints; and
32.1 	(14) other components of the state and local early intervention system consistent 
32.2 	with Public Law 102-119 108-446.
32.3 	Written materials must be developed for parents, IEIC's, and local service providers 
32.4 	that describe procedures developed under this section as required by Code of Federal 
32.5 	Regulations, title 34, section 303.

32.6 	Sec. 19. Minnesota Statutes 2004, section 125A.515, subdivision 1, is amended to read:
32.7 		Subdivision 1.Approval of education programs. The commissioner shall approve 
32.8 	education programs for placement of children and youth in care and treatment facilities 
32.9 	including detention centers, before being licensed by the Department of Human Services 
32.10 	under Minnesota Rules, parts 9545.0905 to 9545.1125 and 9545.1400 to 9545.1480, or 
32.11 	the Department of Corrections under Minnesota Rules, chapters 2925, 2930, 2935, and 
32.12 	2950. Education programs in these facilities shall conform to state and federal education 
32.13 	laws including the Individuals with Disabilities Education Act (IDEA). This section 
32.14 	applies only to placements in facilities licensed by the Department of Human Services or 
32.15 	the Department of Corrections.

32.16 	Sec. 20. Minnesota Statutes 2004, section 125A.515, subdivision 3, is amended to read:
32.17 		Subd. 3.Responsibilities for providing education. (a) The district in which the 
32.18 	facility is located must provide education services, including special education if eligible, 
32.19 	to all students placed in a facility for care and treatment.
32.20 	(b) For education programs operated by the Department of Corrections, the 
32.21 	providing district shall be the Department of Corrections. For students remanded to the 
32.22 	commissioner of corrections, the providing and resident district shall be the Department 
32.23 	of Corrections.
32.24 	(c) Placement for care and treatment does not automatically make a student eligible 
32.25 	for special education. A student placed in a care and treatment facility is eligible for 
32.26 	special education under state and federal law including the Individuals with Disabilities 
32.27 	Education Act under United States Code, title 20, chapter 33.

32.28 	Sec. 21. Minnesota Statutes 2004, section 125A.515, subdivision 5, is amended to read:
32.29 		Subd. 5.Education programs for students placed in facilities for care and 
32.30 	treatment. (a) When a student is placed in a care and treatment facility approved under 
32.31 	this section  that has an on-site education program, the providing district, upon notice from 
32.32 	the care and treatment facility, must contact the resident district within one business day to 
32.33 	determine if a student has been identified as having a disability, and to request at least 
33.1 	the student's transcript, and for students with disabilities, the most recent individualized 
33.2 	education plan (IEP) and evaluation report, and to determine if the student has been 
33.3 	identified as a student with a disability. The resident district must send a facsimile copy to 
33.4 	the providing district within two business days of receiving the request.
33.5 	(b) If a student placed for care and treatment  under this section has been identified as 
33.6 	having a disability and has an individual education plan in the resident district:
33.7 	(1) the providing agency must conduct an individualized education plan meeting 
33.8 	to reach an agreement about continuing or modifying special education services in 
33.9 	accordance with the current individualized education plan goals and objectives and to 
33.10 	determine if additional evaluations are necessary; and
33.11 	(2) at least the following people shall receive written notice or documented phone 
33.12 	call to be followed with written notice to attend the individualized education plan meeting:
33.13 	(i) the person or agency placing the student;
33.14 	(ii) the resident district;
33.15 	(iii) the appropriate teachers and related services staff from the providing district;
33.16 	(iv) appropriate staff from the care and treatment facility;
33.17 	(v) the parents or legal guardians of the student; and
33.18 	(vi) when appropriate, the student.
33.19 	(c) For a student who has not been identified as a student with a disability, a 
33.20 	screening must be conducted by the providing districts as soon as possible to determine 
33.21 	the student's educational and behavioral needs and must include a review of the student's 
33.22 	educational records.

33.23 	Sec. 22. Minnesota Statutes 2004, section 125A.515, subdivision 6, is amended to read:
33.24 		Subd. 6.Exit report summarizing educational progress. If a student has been 
33.25 	placed in a care and treatment facility under this section for 15 or more business days, the 
33.26 	providing district must prepare an exit report summarizing the regular education, special 
33.27 	education, evaluation, educational progress, and service information and must send the 
33.28 	report to the resident district and the next providing district if different, the parent or 
33.29 	legal guardian, and any appropriate social service agency. For students with disabilities, 
33.30 	this report must include the student's IEP.

33.31 	Sec. 23. Minnesota Statutes 2004, section 125A.515, subdivision 7, is amended to read:
33.32 		Subd. 7.Minimum educational services required. When a student is placed in a 
33.33 	facility approved under this section, at a minimum, the providing district is responsible for:
34.1 	(1) the education necessary, including summer school services, for a student who is 
34.2 	not performing at grade level as indicated in the education record or IEP; and
34.3 	(2) a school day, of the same length as the school day of the providing district, unless 
34.4 	the unique needs of the student, as documented through the IEP or education record in 
34.5 	consultation with treatment providers, requires an alteration in the length of the school day.

34.6 	Sec. 24. Minnesota Statutes 2004, section 125A.515, subdivision 9, is amended to read:
34.7 		Subd. 9.Reimbursement for education services. (a) Education services 
34.8 	provided to students who have been placed for care and treatmentunder this section are 
34.9 	reimbursable in accordance with special education and general education statutes.
34.10 	(b) Indirect or consultative services provided in conjunction with regular education 
34.11 	prereferral interventions and assessment provided to regular education students suspected 
34.12 	of being disabled and who have demonstrated learning or behavioral problems in a 
34.13 	screening are reimbursable with special education categorical aids.
34.14 	(c) Regular education, including screening, provided to students with or without 
34.15 	disabilities is not reimbursable with special education categorical aids.

34.16 	Sec. 25. Minnesota Statutes 2004, section 125A.515, subdivision 10, is amended to 
34.17 	read:
34.18 		Subd. 10.Students unable to attend school but not placed in care and treatment 
34.19 	facilities covered under this section. Students who are absent from, or predicted to be 
34.20 	absent from, school for 15 consecutive or intermittent days, at home or in facilities not 
34.21 	licensed by the Departments of Corrections or Human Services are not students placed 
34.22 	for care and treatment entitled to services in accordance with Minnesota Rules, part 
34.23 	3525.2325. These students include students with and without disabilities who are home 
34.24 	due to accident or illness, in a hospital or other medical facility, or in a day treatment 
34.25 	center. These students are entitled to education services through their district of residence.

34.26 	Sec. 26. Minnesota Statutes 2004, section 125A.63, subdivision 4, is amended to read:
34.27 		Subd. 4.Advisory committees. The Special Education Advisory Council
34.28 	commissioner  shall establish an advisory committee for each resource center. The 
34.29 	advisory committees shall develop recommendations regarding the resource centers and 
34.30 	submit an annual report to the commissioner on the form and in the manner prescribed by 
34.31 	the commissioner.

34.32 	Sec. 27. Minnesota Statutes 2004, section 125A.75, subdivision 1, is amended to read:
35.1 		Subdivision 1.Travel aid. The state must pay each district one-half of the sum 
35.2 	actually expended by a district, based on mileage,  for necessary travel of essential 
35.3 	personnel providing home-based services to children with a disability under age five 
35.4 	and their families.

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

35.6 	Sec. 28. DEPARTMENT OF EDUCATION RULES.
 35.7 	Before July 1, 2007, the Department of Education shall amend Minnesota Rules, 
35.8 	part 3525.2325, to conform with Minnesota Statutes, section 125A.515.

35.9 	Sec. 29.  REPEALER.
 35.10 	Minnesota Statutes 2004, sections 125A.10; and 125A.515, subdivision 2, are 
35.11 	repealed.

35.12 	ARTICLE 4
35.13 	NUTRITION AND ACCOUNTING

35.14 	Section 1.  REPEALER.
 35.15 	Minnesota Statutes 2004, section 123B.10, is repealed.

35.16 	ARTICLE 5
35.17 	SELF-SUFFICIENCY AND LIFELONG LEARNING

35.18 	Section 1. Minnesota Statutes 2004, section 124D.518, subdivision 4, is amended to 
35.19 	read:
35.20 		Subd. 4.First prior program year. "First prior program year" means the period 
35.21 	from May 1 of the second prior fiscal year through April 30 of the first prior fiscal year
35.22 	specific time period defined by the commissioner that aligns to a program academic year.

35.23 	Sec. 2. Minnesota Statutes 2004, section 124D.52, subdivision 1, is amended to read:
35.24 		Subdivision 1.Program requirements. (a) An adult basic education program is a 
35.25 	day or evening program offered by a district that is for people over 16 years of age who do 
35.26 	not attend an elementary or secondary school. The program offers academic instruction 
35.27 	necessary to earn a high school diploma or equivalency certificate.
35.28 	(b) Notwithstanding any law to the contrary, a school board or the governing body of 
35.29 	a consortium offering an adult basic education program may adopt a sliding fee schedule 
35.30 	based on a family's income, but must waive the fee for participants who are under the 
36.1 	age of 21 or unable to pay. The fees charged must be designed to enable individuals of 
36.2 	all socioeconomic levels to participate in the program. A program may charge a security 
36.3 	deposit to assure return of materials, supplies, and equipment.
36.4 	(c) Each approved adult basic education program must develop a memorandum of 
36.5 	understanding with the local workforce development centers located in the approved 
36.6 	program's service delivery area. The memorandum of understanding must describe how 
36.7 	the adult basic education program and the workforce development centers will cooperate 
36.8 	and coordinate services to provide unduplicated, efficient, and effective services to clients.
36.9 	(d) Adult basic education aid must be spent for adult basic education purposes as 
36.10 	specified in sections  124D.518 to  124D.531. 
36.11 	(e) A state-approved adult basic education program must count and submit student 
36.12 	contact hours for a program that offers high school credit toward an adult high school 
36.13 	diploma according to student eligibility requirements and competency demonstration 
36.14 	requirements established by the commissioner.

36.15 	ARTICLE 6
36.16 	EARLY CHILDHOOD EDUCATION

36.17 	Section 1. Minnesota Statutes 2004, section 119A.50, subdivision 1, is amended to read:
36.18 		Subdivision 1.Department of Education. The Department of Education is the 
36.19 	state agency responsible for administering the Head Start program. The commissioner 
36.20 	of education may make grantsshall allocate funds according to the formula in section 
36.21 	119A.52 to public or private nonprofit agencies for the purpose of providing supplemental 
36.22 	funds for the federal Head Start program.

36.23 	Sec. 2. Minnesota Statutes 2004, section 119A.52, is amended to read:
36.24 	119A.52 DISTRIBUTION OF APPROPRIATION AND PROGRAM 
36.25 	COORDINATION.
36.26 	The commissioner of education must distribute money appropriated for that purpose 
36.27 	to federally designated Head Start program granteesprograms to expand services and to 
36.28 	serve additional low-income children. Money must be allocated to each project Head Start 
36.29 	grantee in existence on the effective date of Laws 1989, chapter 282. Migrant and Indian 
36.30 	reservation granteesprograms must be initially allocated money based on the grantees'
36.31 	programs' share of federal funds. The remaining money must be initially allocated to the 
36.32 	remaining local agencies based equally on the agencies' share of federal funds and on the 
36.33 	proportion of eligible children in the agencies' service area who are not currently being 
37.1 	served. A Head Start grantee must be funded at a per child rate equal to its contracted, 
37.2 	federally funded base level for program accounts 20, 22, and 25 at the start of the fiscal 
37.3 	year. In allocating funds under this paragraph, the commissioner of education must assure 
37.4 	that each Head Start granteeprogram in existence in 1993 is allocated no less funding 
37.5 	in any fiscal year than was allocated to that granteeprogram in fiscal year 1993. The 
37.6 	commissioner may provide additional funding to grantees for start-up costs incurred by 
37.7 	grantees due to the increased number of children to be served. Before paying money to 
37.8 	the grantees programs, the commissioner must notify each granteeprogram of its initial 
37.9 	allocation, how the money must be used, and the number of low-income children that 
37.10 	mustto be served with the allocation based upon the federally funded per child rate. 
37.11 	Each granteeprogram must present a work plan to the commissioner for approval. The 
37.12 	work plan must include the estimated number of low-income children and families it will 
37.13 	be able to serve, a description of the program design and service delivery area which 
37.14 	meets the needs of and encourages access by low-income working families, a program 
37.15 	design that ensures fair and equitable access to Head Start services for all populations and 
37.16 	parts of the service area, and a plan for coordinating services to maximize assistance 
37.17 	for child care costs available to families under chapter 119B.under section 119A.535. 
37.18 	For any grantee that cannot utilize its full allocation, the commissioner must reduce the 
37.19 	allocation proportionately. Money available after the initial allocations are reduced must 
37.20 	be redistributed to eligible grantees.

37.21 	Sec. 3. Minnesota Statutes 2004, section 119A.53, is amended to read:
37.22 	119A.53 FEDERAL REQUIREMENTS.
37.23 	GranteesPrograms and the commissioner shall comply with federal regulations 
37.24 	governing the federal Head Start program, except for funding for innovative initiatives 
37.25 	under section  119A.52 119A.535 as approved by the commissioner, which may be used to 
37.26 	operate differently than federal Head Start regulations. If a state statute or rule conflicts 
37.27 	with a federal statute or regulation, the state statute or rule prevails. 

37.28 	Sec. 4. [119A.535] APPLICATION REQUIREMENTS.
37.29 	Eligible Head Start organizations must submit a plan to the department for approval 
37.30 	on a form and in the manner prescribed by the commissioner. The plan must include:
37.31 	(1) the estimated number of low-income children and families the program will be 
37.32 	able to serve;
37.33 	(2) a description of the program design and service delivery area which meets the 
37.34 	needs of and encourages access by low-income working families;
38.1 	(3) a program design that ensures fair and equitable access to Head Start services for 
38.2 	all populations and parts of the service area;
38.3 	(4) a plan for coordinating services to maximize assistance for child care costs 
38.4 	available to families under chapter 119B; and
38.5 	(5) identification of regular Head Start, early Head Start, and innovative services 
38.6 	based upon demonstrated needs to be provided.

38.7 	Sec. 5. Minnesota Statutes 2004, section 119A.545, is amended to read:
38.8 	119A.545 AUTHORITY TO WAIVE REQUIREMENTS DURING DISASTER 
38.9 	PERIODS.
38.10 	The commissioner of education may waive requirements under sections  119A.50
38.11 	to  119A.53 119A.535, for up to nine months after the disaster, for Head Start grantees
38.12 	programs in areas where a federal disaster has been declared under United States Code, 
38.13 	title 42, section 5121, et seq., or the governor has exercised authority under chapter 12. 
38.14 	The commissioner shall notify the chairs of the appropriate senate Family and Early 
38.15 	Childhood Education Budget Division, the senate Education Finance Committee, theand 
38.16 	house Family and Early Childhood Education Finance Division, the house Education 
38.17 	Committee, and the house Ways and Means Committeecommittees ten days before the 
38.18 	effective date of any waiver granted under this section. 

38.19 	Sec. 6. Laws 2005, First Special Session chapter 5, article 7, section 20, subdivision 5, 
38.20 	is amended to read:
38.21 	
38.22 	Subd. 5. Head Start program. For Head Start programs  under Minnesota Statutes, 
38.23 	section 119A.52:  
38.24 	

38.25		$
	19,100,000
	.....
	2006
	
38.26		$
	19,100,000
	.....
	2007
	
38.27 	
38.28 	Any balance in the first year does not cancel but is available in the second year.

38.29 	Sec. 7.  REPEALER.
 38.30 	Minnesota Statutes 2004, section 119A.51, is repealed.

39.1 	ARTICLE 7
39.2 	STATE AGENCIES

39.3 	Section 1. Minnesota Statutes 2004, section 125A.69, subdivision 3, is amended to 
39.4 	read:
39.5 		Subd. 3.Out-of-state admissions. An applicant from another state who can benefit 
39.6 	from attending either academy may be admitted to the academy if the admission does not 
39.7 	prevent an eligible Minnesota resident from being admitted. The board of the Minnesota 
39.8 	State Academies must obtain reimbursement from the other state for the costs of the 
39.9 	out-of-state admission. The state board may enter into an agreement with the appropriate 
39.10 	authority in the other state for the reimbursement. Money received from another state 
39.11 	must be deposited in the general special revenue  fund and credited to the general operating 
39.12 	account of the academies. The money is appropriated to the academies.

39.13 	EFFECTIVE DATE. This section is effective retroactively from fiscal year 2001.