1.1 	A bill for an act
1.2 	relating to education finance; defining local education agency for certain special 
1.3 	education purposes;amending Minnesota Statutes 2008, section 125A.01; 
1.4 	proposing coding for new law in Minnesota Statutes, chapter 125A.
1.5 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.6 	Section 1. Minnesota Statutes 2008, section 125A.01, is amended to read:
1.7 	125A.01 DEFINITIONS.
1.8 		Subdivision 1.Terms defined. For purposes of this chapter, the words defined in 
1.9 	section 120A.05 have the same meaning.
1.10 		Subd. 2.Local education agency. "Local education agency" means a public 
1.11 	board of education or other public authority legally constituted within the state for 
1.12 	either administrative control or direction of, or to perform a service function for, public 
1.13 	elementary or secondary schools in a city, county, township, school district, or other 
1.14 	political subdivision of the state, or for a combination of school districts in the state as an 
1.15 	administrative agency for its public elementary and secondary schools. Local education 
1.16 	agency includes a fiscal host. The Minnesota Department of Education must continue to 
1.17 	recognize fiscal hosts for purposes of paying Minnesota's special education aids and 
1.18 	calculating tuition billing amounts.

1.19 	Sec. 2. [125A.015] FISCAL HOST; FREE AND APPROPRIATE PUBLIC 
1.20 	EDUCATION.
1.21 	Notwithstanding any law to the contrary, a school district may provide special 
1.22 	education services to its students through a fiscal host provided that a district that is 
2.1 	a member of a fiscal host continues to be responsible for free and appropriate public 
2.2 	education services for the students within its district.