1.1 	A bill for an act
1.2 	relating to education; providing for prekindergarten
1.3 	through grade 12 education and early childhood and
1.4 	families, including general education, education
1.5 	excellence, special education, facilities and
1.6 	technology, early childhood family support, and
1.7 	prevention; providing for rulemaking; amending
1.8 	Minnesota Statutes 2004, sections 119A.46,
1.9 	subdivisions 1, 2, 3, 8; 120B.11, subdivisions 1, 2,
1.10 	3, 4, 5, 8; 121A.06, subdivisions 2, 3; 121A.53;
1.11 	122A.06, subdivision 4; 122A.09, subdivision 4;
1.12 	122A.18, subdivision 2a; 123A.05, subdivision 2;
1.13 	123B.143, subdivision 1; 123B.36, subdivision 1;
1.14 	123B.49, subdivision 4; 123B.59, subdivisions 3, 3a;
1.15 	123B.63, subdivision 2; 123B.71, subdivisions 8, 12;
1.16 	123B.75, by adding a subdivision; 123B.76, subdivision
1.17 	3; 123B.79, subdivision 6; 123B.81, subdivision 1;
1.18 	123B.82; 123B.83, subdivision 2; 124D.095, subdivision
1.19 	8; 124D.10, subdivisions 3, 4, 8; 124D.11,
1.20 	subdivisions 1, 6; 124D.135, subdivision 5; 124D.16,
1.21 	subdivision 3; 124D.68, subdivision 9; 124D.69,
1.22 	subdivision 1; 124D.74, subdivision 1; 124D.81,
1.23 	subdivision 1; 124D.84, subdivision 1; 125A.24;
1.24 	125A.28; 126C.01, subdivision 11; 126C.05, by adding a
1.25 	subdivision; 126C.15, subdivisions 1, 2, by adding a
1.26 	subdivision; 126C.21, subdivision 4; 126C.48,
1.27 	subdivisions 2, 8; 127A.49, subdivision 3; 134.31, by
1.28 	adding a subdivision; 275.14; 275.16; 469.177,
1.29 	subdivision 9; proposing coding for new law in
1.30 	Minnesota Statutes, chapter 127A; repealing Minnesota
1.31 	Statutes 2004, sections 123B.83, subdivision 1;
1.32 	126C.42, subdivisions 1, 4.
1.33 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.34 	ARTICLE 1
1.35 	GENERAL EDUCATION

1.36 	Section 1. Minnesota Statutes 2004, section 123A.05,
1.37 	subdivision 2, is amended to read:
1.38 		Subd. 2.Reserve revenue.  Each district that is a member
1.39 	of an area learning center must reserve revenue in an amount
2.1 	equal to the sum of (1) at least 90 percent of the district
2.2 	average general education revenue per pupil unit minus an amount
2.3 	equal to the product of the formula allowance according to
2.4 	section 126C.10, subdivision 2, times .0485, calculated without
2.5 	basic skills revenue,and transportation sparsity revenue, and
2.6 	the transportation portion of the transition revenue adjustment,
2.7 	times the number of pupil units attending an area learning
2.8 	center program under this section, plus (2) the amount of basic
2.9 	skills revenue generated by pupils attending the area learning
2.10 	center.  The amount of reserved revenue under this subdivision
2.11 	may only be spent on program costs associated with the area
2.12 	learning center. Compensatory revenue must be allocated
2.13 	according to section 126C.15, subdivision 2.

2.14 	Sec. 2. Minnesota Statutes 2004, section 123B.49,
2.15 	subdivision 4, is amended to read:
2.16 		Subd. 4.Board control of extracurricular activities.
 2.17 	(a) The board may take charge of and control all extracurricular
2.18 	activities of the teachers and children of the public schools in
2.19 	the district.  Extracurricular activities means all direct and
2.20 	personal services for pupils for their enjoyment that are
2.21 	managed and operated under the guidance of an adult or staff
2.22 	member.  The board shall allow all resident pupils receiving
2.23 	instruction in a home school as defined in section 123B.36,
2.24 	subdivision 1, paragraph (a), to be eligible to fully
2.25 	participate in extracurricular activities on the same basis as
2.26 	public school students.
2.27 	(b) Extracurricular activities have all of the following
2.28 	characteristics:
2.29 	(1) they are not offered for school credit nor required for
2.30 	graduation;
2.31 	(2) they are generally conducted outside school hours, or
2.32 	if partly during school hours, at times agreed by the
2.33 	participants, and approved by school authorities;
2.34 	(3) the content of the activities is determined primarily
2.35 	by the pupil participants under the guidance of a staff member
2.36 	or other adult.
3.1 	(c) If the board does not take charge of and control
3.2 	extracurricular activities, these activities shall be
3.3 	self-sustaining with all expenses, except direct salary costs
3.4 	and indirect costs of the use of school facilities, met by dues,
3.5 	admissions, or other student fund-raising events.  The general
3.6 	fund must reflect only those salaries directly related to and
3.7 	readily identified with the activity and paid by public funds.
3.8 	Other revenues and expenditures for extra curricular activities
3.9 	must be recorded according to the "Manual of Instruction for
3.10 	Uniform Student Activities Accounting for Minnesota School
3.11 	Districts and Area Vocational-Technical Colleges." Manual for
3.12 	Activity Fund Accounting.Extracurricular activities not under
3.13 	board control must have an annual financial audit and must also
3.14 	be audited annually for compliance with this section.
3.15 	(d) If the board takes charge of and controls
3.16 	extracurricular activities, any or all costs of these activities
3.17 	may be provided from school revenues and all revenues and
3.18 	expenditures for these activities shall be recorded in the same
3.19 	manner as other revenues and expenditures of the district.
3.20 	(e) If the board takes charge of and controls
3.21 	extracurricular activities, the teachers or pupils in the
3.22 	district must not participate in such activity, nor shall the
3.23 	school name or any allied name be used in connection therewith,
3.24 	except by consent and direction of the board.

3.25 	Sec. 3. Minnesota Statutes 2004, section 123B.75, is
3.26 	amended by adding a subdivision to read:
3.27 		Subd. 4a.Taconite revenue. Taconite revenue received in
3.28 	a calendar year by a school district under section 298.28,
3.29 	subdivisions 4, paragraphs (b) and (c), and 11, paragraph (d),
3.30 	is fully recognized in the fiscal year in which the February
3.31 	payment falls.

3.32 	Sec. 4. Minnesota Statutes 2004, section 123B.76,
3.33 	subdivision 3, is amended to read:
3.34 		Subd. 3.Expenditures by building.  (a) For the purposes
3.35 	of this section, "building" means education site as defined in
3.36 	section 123B.04, subdivision 1.
4.1 	(b) Each district shall maintain separate accounts to
4.2 	identify general fund expenditures, excluding capital
4.3 	expenditures and pupil transportation,for each building.  All
4.4 	expenditures for regular instruction, secondary vocational
4.5 	instruction, and school administration must be reported to the
4.6 	department separately for each building.  All expenditures for
4.7 	special education instruction, instructional support services,
4.8 	and pupil support services provided within a specific building
4.9 	must be reported to the department separately for each
4.10 	building.  Salary expenditures reported by building must reflect
4.11 	actual salaries for staff at the building and must not be based
4.12 	on districtwide averages.  All other general fund expenditures
4.13 	may be reported by building or on a districtwide basis.
4.14 	(c) The department must annually report information showing
4.15 	school district general fund expenditures per pupil by program
4.16 	category for each building and estimated school district general
4.17 	fund revenue generated by pupils attending each building on its
4.18 	Web site.  For purposes of this report:
4.19 	(1) expenditures not required to be reported by building
4.20 	shall be allocated among buildings on a uniform per pupil basis;
4.21 	(2) basic skills revenue shall be allocated according to
4.22 	section 126C.10, subdivision 4;
4.23 	(3) secondary sparsity revenue and elementary sparsity
4.24 	revenue shall be allocated according to section 126C.10,
4.25 	subdivisions 7 and 8;
4.26 	(4) other general education revenue shall be allocated on a
4.27 	uniform per pupil unit basis;
4.28 	(5) first grade preparedness aid shall be allocated
4.29 	according to section 124D.081;
4.30 	(6) state and federal special education aid and Title I aid
4.31 	shall be allocated in proportion to district expenditures for
4.32 	these programs by building; and
4.33 	(7) other general fund revenues shall be allocated on a
4.34 	uniform per pupil basis, except that the department may allocate
4.35 	other revenues attributable to specific buildings directly to
4.36 	those buildings.

5.1 	Sec. 5. Minnesota Statutes 2004, section 123B.79,
5.2 	subdivision 6, is amended to read:
5.3 		Subd. 6.Account transfer for statutory operating debt.
 5.4 	On June 30 of each year, a district may make a permanent
5.5 	transfer from the general fund account entitled " undesignated 
5.6 	net unreserved general fund balance since statutory operating
5.7 	debt" to the account entitled "reserved fund balance reserve
5.8 	account for purposes of statutory operating debt reduction."
5.9 	The amount of the transfer is limited to the lesser of (a) the
5.10 	net undesignated operating unreserved general fund balance, or
5.11 	(b) the sum of the remaining statutory operating debt levies
5.12 	authorized for all future years according to section 126C.42,
5.13 	subdivision 1.  If the net undesignated operating unreserved
5.14 	general fund balance is less than zero, the district may not
5.15 	make a transfer.

5.16 	Sec. 6. Minnesota Statutes 2004, section 123B.81,
5.17 	subdivision 1, is amended to read:
5.18 		Subdivision 1.Operating debt.  The "operating debt" of a
5.19 	school district means the net negative undesignated unreserved
5.20 	general fund balance in all school district funds, other than
5.21 	capital expenditure, building construction, debt service, and
5.22 	trust and agency,calculated as of June 30 of each year in
5.23 	accordance with the uniform financial accounting and reporting
5.24 	standards for Minnesota school districts.

5.25 	Sec. 7. Minnesota Statutes 2004, section 123B.82, is
5.26 	amended to read:
5.27 	123B.82 REORGANIZATION OPERATING DEBT.
5.28 	The "reorganization operating debt" of a school district
5.29 	means the net negative undesignated unreserved fund balance 
5.30 	balances in all school district funds, other than building
5.31 	construction, debt redemption, and trust and agency, calculated
5.32 	in accordance with the uniform financial accounting and
5.33 	reporting standards for Minnesota school districts as of:
5.34 	(1) June 30 of the fiscal year before the first year that a
5.35 	district receives revenue according to section 123A.39,
5.36 	subdivision 3; or
6.1 	(2) June 30 of the fiscal year before the effective date of
6.2 	reorganization according to section 123A.46 or 123A.48.

6.3 	Sec. 8. Minnesota Statutes 2004, section 123B.83,
6.4 	subdivision 2, is amended to read:
6.5 		Subd. 2.undesignated unreserved fund balances.
 6.6 	Beginning in fiscal year 1978 and each year thereafter, any A
6.7 	school district not subject to the provisions of subdivision 1 
6.8 	must limit its expenditures so that its undesignated net
6.9 	unreserved general fund balances do balance does not constitute
6.10 	statutory operating debt as defined in section 126C.42.

6.11 	Sec. 9. Minnesota Statutes 2004, section 124D.68,
6.12 	subdivision 9, is amended to read:
6.13 		Subd. 9.Enrollment verification.  (a) For a pupil
6.14 	attending an eligible program full time under subdivision 3,
6.15 	paragraph (d), the department must pay 90 percent of the
6.16 	district's average general education revenue less basic skills
6.17 	revenue to the eligible program and ten percent of the
6.18 	district's average general education revenue less basic skills
6.19 	revenue to the contracting district within 30 days after the
6.20 	eligible program verifies enrollment using the form provided by
6.21 	the department.  For a pupil attending an eligible program part
6.22 	time, revenue, excluding compensatory revenue,shall be reduced
6.23 	proportionately, according to the amount of time the pupil
6.24 	attends the program, and the payments to the eligible program
6.25 	and the contracting district shall be reduced accordingly.  A
6.26 	pupil for whom payment is made according to this section may not
6.27 	be counted by any district for any purpose other than
6.28 	computation of general education revenue.  If payment is made
6.29 	for a pupil under this subdivision, a district shall not
6.30 	reimburse a program under section 124D.69 for the same
6.31 	pupil. The basic skills revenue shall be paid generated by
6.32 	pupils attending the eligible program according to section
6.33 	126C.10, subdivision 4, shall be paid to the eligible program.
6.34 	(b) The department must pay up to 100 percent of the
6.35 	revenue to the eligible program if there is an agreement to that
6.36 	effect between the school district and the eligible program.
7.1 	(c) Notwithstanding paragraphs (a) and (b), for an eligible
7.2 	program that provides chemical treatment services to students,
7.3 	the department must pay 100 percent of the revenue to the
7.4 	eligible program.

7.5 	Sec. 10. Minnesota Statutes 2004, section 124D.69,
7.6 	subdivision 1, is amended to read:
7.7 		Subdivision 1.Aid.  If a pupil enrolls in an alternative
7.8 	program, eligible under section 124D.68, subdivision 3,
7.9 	paragraph (d), or subdivision 4, operated by a private
7.10 	organization that has contracted with a school district to
7.11 	provide educational services for eligible pupils under section
7.12 	124D.68, subdivision 2, the district contracting with the
7.13 	private organization must reimburse the provider an amount equal
7.14 	to the sum of (1) at least 95 percent of the district's average
7.15 	general education less basic skills revenue per pupil unit times
7.16 	the number of pupil units for pupils attending the program., and
7.17 	(2) the amount of basic skills revenue shall be paid generated
7.18 	by pupils attending the program according to section 126C.10,
7.19 	subdivision 4. Compensatory revenue must be allocated according
7.20 	to section 126C.15, subdivision 2.For a pupil attending the
7.21 	program part time, the revenue paid to the program, excluding
7.22 	compensatory revenue,must be reduced proportionately, according
7.23 	to the amount of time the pupil attends the program, and revenue
7.24 	paid to the district shall be reduced accordingly.  Pupils for
7.25 	whom a district provides reimbursement may not be counted by the
7.26 	district for any purpose other than computation of general
7.27 	education revenue.  If payment is made to a district or program
7.28 	for a pupil under this section, the department must not make a
7.29 	payment for the same pupil under section 124D.68, subdivision 9.
7.30 	Notwithstanding sections 125A.15, 125A.51, and 125A.515, general
7.31 	education revenue for a student who receives educational
7.32 	services under this section shall be paid according to this
7.33 	section.

7.34 	Sec. 11. Minnesota Statutes 2004, section 126C.01,
7.35 	subdivision 11, is amended to read:
7.36 		Subd. 11.Net unappropriated operating unreserved general 
8.1 	fund balance.  "Net unappropriated operating unreserved general 
8.2 	fund balance" means the sum of the unreserved general fund
8.3 	balances in the general, food service, and community service
8.4 	funds minus the balances reserved for statutory operating debt
8.5 	reduction, bus purchase, severance pay, taconite, unemployment
8.6 	benefits, maintenance levy reduction, operating capital,
8.7 	disabled access, health and safety,balance and encumbrances,
8.8 	computed as of June 30 each year.

8.9 	Sec. 12. Minnesota Statutes 2004, section 126C.05, is
8.10 	amended by adding a subdivision to read:
8.11 		Subd. 20.Project-based average daily membership. (a) To
8.12 	receive general education revenue for a pupil enrolled in a
8.13 	public school with a project-based program, a school must meet
8.14 	the requirements in this paragraph.  The school must:
8.15 	(1) register with the commissioner as a project-based
8.16 	program by May 30 of the preceding fiscal year;
8.17 	(2) provide a minimum teacher contact of no less than one
8.18 	hour per week per project-based credit for each pupil;
8.19 	(3) maintain a record system that shows when each credit or
8.20 	portion thereof was reported for membership for each pupil; and 
8.21 	(4) report pupil membership consistent with paragraph (b).
8.22 	(b) The commissioner must develop a formula for reporting
8.23 	pupil membership to compute average daily membership for each
8.24 	registered project-based school.  Average daily membership for a
8.25 	pupil in a registered project-based program is the lesser of:
8.26 	(1) 1.0; or 
8.27 	(2) the ratio of (i) the number of membership hours
8.28 	generated by project-based credits completed during the school
8.29 	year plus membership hours generated by credits completed in a
8.30 	seat-based setting to (ii) the annual required instructional
8.31 	hours at that grade level.  Membership hours for a partially
8.32 	completed project-based credit must be prorated.

8.33 	Sec. 13. Minnesota Statutes 2004, section 126C.21,
8.34 	subdivision 4, is amended to read:
8.35 		Subd. 4.Taconite deductions. (1) Notwithstanding any
8.36 	provisions of any other law to the contrary, the adjusted net
9.1 	tax capacity used in calculating general education aid may
9.2 	include only that property that is currently taxable in the
9.3 	district.
9.4 	(2) For districts that received payments have revenue under
9.5 	sections 298.018; 298.225; 229.24 to 298.28, excluding 298.26
9.6 	and 298.28, subdivision 4, paragraph (d); 298.34 to 298.39;
9.7 	298.391 to 298.396; and 298.405; and 477A.15, any law imposing a
9.8 	tax upon severed mineral values; or recognized revenue under
9.9 	section 477A.15;the general education aid must be reduced in
9.10 	the final adjustment payment by (1) the difference between the
9.11 	dollar amount of the payments received revenue recognized 
9.12 	pursuant to those sections, or revenue recognized under section
9.13 	477A.15 in for the fiscal year to which the final adjustment is
9.14 	attributable and , less (2) the amount that was calculated,
9.15 	pursuant to section 126C.48, subdivision 8, as a reduction of
9.16 	the levy attributable to the fiscal year to which the final
9.17 	adjustment is attributable.  If the final adjustment of a
9.18 	district's general education aid for a fiscal year is a negative
9.19 	amount because of this clause subdivision, the next fiscal
9.20 	year's general education aid to that district must be reduced by
9.21 	this negative amount in the following manner:  there must be
9.22 	withheld from each scheduled general education aid payment due
9.23 	the district in such fiscal year, 15 percent of the total
9.24 	negative amount, until the total negative amount has been
9.25 	withheld.  The amount reduced from general education aid
9.26 	pursuant to this clause subdivision must be recognized as reduce 
9.27 	revenue in the fiscal year to which the final adjustment payment
9.28 	is attributable.

9.29 	Sec. 14. Minnesota Statutes 2004, section 126C.48,
9.30 	subdivision 2, is amended to read:
9.31 		Subd. 2.Notice to commissioner; forms.  By October 7 of
9.32 	each year each district must notify the commissioner of the
9.33 	proposed levies in compliance with the levy limitations of this
9.34 	chapter and chapters 120B, 122A, 123A, 123B, 124D, 125A, 127A,
9.35 	and 136D.  By January 15 7 of each year each district must
9.36 	notify the commissioner of the final levies certified.  The
10.1 	commissioner shall prescribe the form of these notifications and
10.2 	may request any additional information necessary to compute
10.3 	certified levy amounts.

10.4 	Sec. 15. Minnesota Statutes 2004, section 126C.48,
10.5 	subdivision 8, is amended to read:
10.6 		Subd. 8.Taconite payment and other reductions.  (1)
10.7 	Reductions in levies pursuant to subdivision 1 must be made
10.8 	prior to the reductions in clause (2).
10.9 	(2) Notwithstanding any other law to the contrary,
10.10 	districts which received payments that have revenue pursuant to
10.11 	sections 298.018; 298.225; 298.24 to 298.28, except an amount
10.12 	distributed under section sections 298.26;298.28, subdivision
10.13 	4, paragraph paragraphs (c), clause (ii), and (d); 298.34 to
10.14 	298.39; 298.391 to 298.396; 298.405; 477A.15;and any law
10.15 	imposing a tax upon severed mineral values; or recognized
10.16 	revenue under section 477A.15 must not include a portion of
10.17 	these aids in their permissible levies pursuant to those
10.18 	sections, but instead must reduce the permissible levies
10.19 	authorized by this chapter and chapters 120B, 122A, 123A, 123B,
10.20 	124A, 124D, 125A, and 127A by the greater of the following:95
10.21 	percent of the previous year's revenue specified under this
10.22 	clause.
10.23 	(a) an amount equal to 50 percent of the total dollar
10.24 	amount of the payments received pursuant to those sections or
10.25 	revenue recognized under section 477A.15 in the previous fiscal
10.26 	year; or 
10.27 	(b) an amount equal to the total dollar amount of the
10.28 	payments received pursuant to those sections or revenue
10.29 	recognized under section 477A.15 in the previous fiscal year
10.30 	less the product of the same dollar amount of payments or
10.31 	revenue times five percent.
10.32 	For levy year 2002 only, 77 percent of the amounts
10.33 	distributed under section 298.225 and 298.28, and 100 percent of
10.34 	the amounts distributed under sections 298.018; 298.34 to
10.35 	298.39; 298.391 to 298.396; 298.405; and any law imposing a tax
10.36 	upon severed mineral values, or recognized revenue under section
11.1 	477A.15, shall be used for purposes of the calculations under
11.2 	this paragraph.  For levy year 2003 only, the levy reductions
11.3 	under this subdivision must be calculated as if section 298.28,
11.4 	subdivision 4, paragraph (f), did not apply for the 2003
11.5 	distribution.
11.6 	(3) The amount of any voter approved referendum, facilities
11.7 	down payment, and debt levies shall not be reduced by more than
11.8 	50 percent under this subdivision.  In administering this
11.9 	paragraph, the commissioner shall first reduce the nonvoter
11.10 	approved levies of a district; then, if any payments, severed
11.11 	mineral value tax revenue or recognized revenue under paragraph
11.12 	(2) remains, the commissioner shall reduce any voter approved
11.13 	referendum levies authorized under section 126C.17; then, if any
11.14 	payments, severed mineral value tax revenue or recognized
11.15 	revenue under paragraph (2) remains, the commissioner shall
11.16 	reduce any voter approved facilities down payment levies
11.17 	authorized under section 123B.63 and then, if any payments,
11.18 	severed mineral value tax revenue or recognized revenue under
11.19 	paragraph (2) remains, the commissioner shall reduce any voter
11.20 	approved debt levies.
11.21 	(4) Before computing the reduction pursuant to this
11.22 	subdivision of the health and safety levy authorized by sections
11.23 	123B.57 and 126C.40, subdivision 5, the commissioner shall
11.24 	ascertain from each affected school district the amount it
11.25 	proposes to levy under each section or subdivision.  The
11.26 	reduction shall be computed on the basis of the amount so
11.27 	ascertained.
11.28 	(5) To the extent the levy reduction calculated under
11.29 	paragraph (2) exceeds the limitation in paragraph (3), an amount
11.30 	equal to the excess must be distributed from the school
11.31 	district's distribution under sections 298.225, 298.28, and
11.32 	477A.15 in the following year to the cities and townships within
11.33 	the school district in the proportion that their taxable net tax
11.34 	capacity within the school district bears to the taxable net tax
11.35 	capacity of the school district for property taxes payable in
11.36 	the year prior to distribution.  No city or township shall
12.1 	receive a distribution greater than its levy for taxes payable
12.2 	in the year prior to distribution.  The commissioner of revenue
12.3 	shall certify the distributions of cities and towns under this
12.4 	paragraph to the county auditor by September 30 of the year
12.5 	preceding distribution.  The county auditor shall reduce the
12.6 	proposed and final levies of cities and towns receiving
12.7 	distributions by the amount of their distribution.
12.8 	Distributions to the cities and towns shall be made at the times
12.9 	provided under section 298.27.

12.10 	Sec. 16. Minnesota Statutes 2004, section 127A.49,
12.11 	subdivision 3, is amended to read:
12.12 		Subd. 3.Excess tax increment.  (a) If a return of excess
12.13 	tax increment is made to a district pursuant to section sections 
12.14 	469.176, subdivision 2, and 469.177, subdivision 9,or upon
12.15 	decertification of a tax increment district, the school
12.16 	district's aid and levy limitations must be adjusted for the
12.17 	fiscal year in which the excess tax increment is paid under the
12.18 	provisions of this subdivision.
12.19 	(b) An amount must be subtracted from the district's aid
12.20 	for the current fiscal year equal to the product of:
12.21 	(1) the amount of the payment of excess tax increment to
12.22 	the district, times
12.23 	(2) the ratio of:
12.24 	(i) the sum of the amounts of the district's certified levy
12.25 	for the fiscal year in which the excess tax increment is paid
12.26 	according to the following:
12.27 	(A) section 123B.57, if the district received health and
12.28 	safety aid according to that section for the second preceding
12.29 	year;
12.30 	(B) section 124D.20, if the district received aid for
12.31 	community education programs according to that section for the
12.32 	second preceding year;
12.33 	(C) section 124D.135, subdivision 3, if the district
12.34 	received early childhood family education aid according to
12.35 	section 124D.135 for the second preceding year; and
12.36 	(D) section 126C.17, subdivision 6, if the district
13.1 	received referendum equalization aid according to that section
13.2 	for the second preceding year; to
13.3 	(ii) the total amount of the district's certified levy for
13.4 	the fiscal year, plus or minus auditor's adjustments.
13.5 	(c) An amount must be subtracted from the school district's
13.6 	levy limitation for the next levy certified equal to the
13.7 	difference between:
13.8 	(1) the amount of the distribution of excess increment; and
13.9 	(2) the amount subtracted from aid pursuant to clause (a).
13.10 	If the aid and levy reductions required by this subdivision
13.11 	cannot be made to the aid for the fiscal year specified or to
13.12 	the levy specified, the reductions must be made from aid for
13.13 	subsequent fiscal years, and from subsequent levies.  The school
13.14 	district must use the payment of excess tax increment to replace
13.15 	the aid and levy revenue reduced under this subdivision.
13.16 	(d) This subdivision applies only to the total amount of
13.17 	excess increments received by a district for a calendar year
13.18 	that exceeds $25,000.

13.19 	Sec. 17. Minnesota Statutes 2004, section 275.14, is
13.20 	amended to read:
13.21 	275.14 CENSUS.
13.22 	For the purposes of sections 275.124 to 275.16, the
13.23 	population of a city shall be that established by the last
13.24 	federal census, by a special census taken by the United States
13.25 	Bureau of the Census, by an estimate made by the Metropolitan
13.26 	Council, or by the state demographer made according to section
13.27 	4A.02, whichever has the latest stated date of count or
13.28 	estimate, before July 2 of the current levy year.The
13.29 	population of a school district must be as certified by the
13.30 	Department of Education from the most recent federal census.  In
13.31 	any year in which no federal census is taken pursuant to law in
13.32 	any school district affected by sections 275.124 to
13.33 	275.16 124D.20 and 124D.531a population estimate may be made
13.34 	and submitted to the state demographer for approval as
13.35 	hereinafter provided.  The school board of a school district, in
13.36 	case it desires a population estimate, shall pass a resolution
14.1 	by July 1 containing a current estimate of the population of the
14.2 	school district and shall submit the resolution to the state
14.3 	demographer.  The resolution shall describe the criteria on
14.4 	which the estimate is based and shall be in a form and
14.5 	accompanied by the data prescribed by the state demographer.
14.6 	The state demographer shall determine whether or not the
14.7 	criteria and process described in the resolution provide a
14.8 	reasonable basis for the population estimate and shall inform
14.9 	the school district of that determination within 30 days of
14.10 	receipt of the resolution.  If the state demographer determines
14.11 	that the criteria and process described in the resolution do not
14.12 	provide a reasonable basis for the population estimate, the
14.13 	resolution shall be of no effect.  If the state demographer
14.14 	determines that the criteria and process do provide a reasonable
14.15 	basis for the population estimate, the estimate shall be treated
14.16 	as the population of the school district for the purposes of
14.17 	sections 275.124 to 275.16124D.20 and 124D.531until the
14.18 	population of the school district has been established by the
14.19 	next federal census or until a more current population estimate
14.20 	is prepared and approved as provided herein, whichever occurs
14.21 	first.  The state demographer shall establish guidelines for
14.22 	acceptable population estimation criteria and processes.  The
14.23 	state demographer shall issue advisory opinions upon request in
14.24 	writing to cities or school districts as to proposed criteria
14.25 	and processes prior to their implementation in an estimation.
14.26 	The advisory opinion shall be final and binding upon the
14.27 	demographer unless the demographer can show cause why it should
14.28 	not be final and binding.
14.29 	In the event that a census tract employed in taking a
14.30 	federal or local census overlaps two or more school districts,
14.31 	the county auditor shall, on the basis of the best information
14.32 	available, allocate the population of said census tract to the
14.33 	school districts involved.
14.34 	The term "council," as used in sections 275.124 to 275.16,
14.35 	means any board or body, whether composed of one or more
14.36 	branches, authorized to make ordinances for the government of a
15.1 	city within this state.

15.2 	Sec. 18. Minnesota Statutes 2004, section 275.16, is
15.3 	amended to read:
15.4 	275.16 COUNTY AUDITOR TO FIX AMOUNT OF LEVY.
15.5 	If any such municipality shall return to the county auditor
15.6 	a levy greater than permitted by chapters 123A, 123B, 124D,
15.7 	126C, and 136C, and 136D,sections 275.124 to 275.16, and 275.70
15.8 	to 275.74, such county auditor shall extend only such amount of
15.9 	taxes as the limitations herein prescribed will permit;
15.10 	provided, if such levy shall include any levy for the payment of
15.11 	bonded indebtedness or judgments, such levies for bonded
15.12 	indebtedness or judgments shall be extended in full, and the
15.13 	remainder of the levies shall be reduced so that the total
15.14 	thereof, including levies for bonds and judgments, shall not
15.15 	exceed such amount as the limitations herein prescribed will
15.16 	permit.

15.17 	Sec. 19. Minnesota Statutes 2004, section 469.177,
15.18 	subdivision 9, is amended to read:
15.19 		Subd. 9.Distributions of excess taxes on captured net
15.20 	tax capacity.  (a) If the amount of tax paid on captured net tax
15.21 	capacity exceeds the amount of tax increment, the county auditor
15.22 	shall distribute the excess to the municipality, county, and
15.23 	school district as follows:  each governmental unit's share of
15.24 	the excess equals
15.25 	(1) the total amount of the excess for the tax increment
15.26 	financing district, multiplied by
15.27 	(2) a fraction, the numerator of which is the current local
15.28 	tax rate of the governmental unit less the governmental unit's
15.29 	local tax rate for the year the original local tax rate for the
15.30 	district was certified (in no case may this amount be less than
15.31 	zero) and the denominator of which is the sum of the numerators
15.32 	for the municipality, county, and school district.
15.33 	If the entire increase in the local tax rate is attributable to
15.34 	a taxing district, other than the municipality, county, or
15.35 	school district, then the excess must be distributed to the
15.36 	municipality, county, and school district in proportion to their
16.1 	respective local tax rates.
16.2 	(b) The amounts distributed shall be deducted in computing
16.3 	the levy limits of the taxing district for the succeeding
16.4 	taxable year. In the case of a school district, only the
16.5 	proportion of the excess taxes attributable to unequalized
16.6 	levies that are subject to a fixed dollar amount levy limit
16.7 	shall be deducted from the levy limit.
16.8 	(c) In the case of distributions to a school district that
16.9 	are attributable to state equalized levies, the county auditor
16.10 	shall report amounts distributed to the commissioner of
16.11 	education in the same manner as provided for excess increments
16.12 	under section 469.176, subdivision 2, and the distribution shall
16.13 	be deducted from the school district's state aid payments and
16.14 	levy limitation according to section 127A.49, subdivision 3.

16.15 	Sec. 20. REPEALER.
 16.16 	Minnesota Statutes 2004, sections 123B.83, subdivision 1,
16.17 	and 126C.42, subdivisions 1 and 4, are repealed.

16.18 	ARTICLE 2
16.19 	EDUCATION EXCELLENCE

16.20 	Section 1. Minnesota Statutes 2004, section 120B.11,
16.21 	subdivision 1, is amended to read:
16.22 		Subdivision 1.Definitions.  For the purposes of this
16.23 	section and section 120B.10, the following terms have the
16.24 	meanings given them.
16.25 	(a) "Instruction" means methods of providing learning
16.26 	experiences that enables enable a student to meet state and
16.27 	district academic standards and graduation
16.28 	standards requirements.
16.29 	(b) "Curriculum" means district or school adopted programs
16.30 	and written plans for providing students with learning
16.31 	experiences that lead to expected knowledge,and skills, and
16.32 	positive attitudes.

16.33 	Sec. 2. Minnesota Statutes 2004, section 120B.11,
16.34 	subdivision 2, is amended to read:
16.35 		Subd. 2.Adopting policies.  (a) A school board shall
16.36 	adopt annually a have in place an adopted written policy that
17.1 	includes the following:
17.2 	(1) district goals for instruction and including the use of
17.3 	best practices, district and school curriculum, and achievement
17.4 	for all student subgroups;
17.5 	(2) a process for evaluating each student's progress toward
17.6 	meeting graduation academic standards and identifying the
17.7 	strengths and weaknesses of instruction and curriculum affecting
17.8 	students' progress;
17.9 	(3) a system for periodically reviewing and evaluating all
17.10 	instruction and curriculum;
17.11 	(4) a plan for improving instruction and ,curriculum, and
17.12 	student achievement; and
17.13 	(5) an instruction plan that includes education
17.14 	effectiveness processes developed under plan aligned with 
17.15 	section 122A.625and that integrates instruction, curriculum,
17.16 	and technology.

17.17 	Sec. 3. Minnesota Statutes 2004, section 120B.11,
17.18 	subdivision 3, is amended to read:
17.19 		Subd. 3.instruction and curriculum district advisory
17.20 	committee.  Each school board shall establish an Instruction and
17.21 	Curriculum advisory committee to ensure active community
17.22 	participation in all phases of planning and improving the
17.23 	instruction and curriculum affecting state graduation and
17.24 	district academic standards.  A district advisory committee, to
17.25 	the extent possible, shall reflect the diversity of the district
17.26 	and its learning sites, and shall include teachers, parents,
17.27 	support staff, pupils students, and other community residents.
17.28 	The district may establish building teams as subcommittees of
17.29 	the district advisory committee under subdivision 4.  The
17.30 	district advisory committee shall recommend to the school
17.31 	board districtwide education standards rigorous academic
17.32 	standards, student achievement goals and measures, assessments,
17.33 	and program evaluations.  Learning sites may expand upon
17.34 	district evaluations of instruction, curriculum, assessments, or
17.35 	programs.  Whenever possible, parents and other community
17.36 	residents shall comprise at least two-thirds of advisory
18.1 	committee members.

18.2 	Sec. 4. Minnesota Statutes 2004, section 120B.11,
18.3 	subdivision 4, is amended to read:
18.4 		Subd. 4.Building team.  A school may establish a
18.5 	building team to develop and implement an education
18.6 	effectiveness plan to improve instruction and ,curriculum, and
18.7 	student achievement.  The team shall advise the board and the
18.8 	advisory committee about developing an instruction and
18.9 	curriculum improvement plan that aligns curriculum, assessment
18.10 	of student progress in meeting state graduation and district
18.11 	academic standards, and instruction.

18.12 	Sec. 5. Minnesota Statutes 2004, section 120B.11,
18.13 	subdivision 5, is amended to read:
18.14 		Subd. 5.Report.  (a) By October 1 of each year, the
18.15 	school board shall use standard statewide reporting procedures
18.16 	the commissioner develops and adopt a report that includes the
18.17 	following:
18.18 	(1) student performance achievement goals for meeting state
18.19 	graduation academic standards adopted for that year;
18.20 	(2) results of local assessment data, and any additional
18.21 	test data;
18.22 	(3) the annual school district improvement plans including
18.23 	staff development goals under section 122A.60;
18.24 	(4) information about district and learning site progress
18.25 	in realizing previously adopted improvement plans; and
18.26 	(5) the amount and type of revenue attributed to each
18.27 	education site as defined in section 123B.04.
18.28 	(b) The school board shall publish the report in the local
18.29 	newspaper with the largest circulation in the district or ,by
18.30 	mail, or by electronic means such as the district Web site.  If
18.31 	electronic means are used, the public must be notified and
18.32 	copies of the report made available on request.  The board shall
18.33 	make a copy of the report available to the public for
18.34 	inspection.  The board shall send a copy of the report to the
18.35 	commissioner of education by October 15 of each year.
18.36 	(c) The title of the report shall contain the name and
19.1 	number of the school district and read "Annual Report on
19.2 	Curriculum, Instruction, and Student Performance Achievement."
19.3 	The report must include at least the following information about
19.4 	advisory committee membership:
19.5 	(1) the name of each committee member and the date when
19.6 	that member's term expires;
19.7 	(2) the method and criteria the school board uses to select
19.8 	committee members; and
19.9 	(3) the date by which a community resident must apply to
19.10 	next serve on the committee.

19.11 	Sec. 6. Minnesota Statutes 2004, section 120B.11,
19.12 	subdivision 8, is amended to read:
19.13 		Subd. 8.Biennial evaluation; assessment program.  At
19.14 	least once every two years, the district report shall include an
19.15 	evaluation of the district testing programs, according to the
19.16 	following:
19.17 	(1) written objectives of the assessment program;
19.18 	(2) names of tests and grade levels tested;
19.19 	(3) use of test results; and
19.20 	(4) implementation of an assurance of mastery program 
19.21 	student achievement results compared to previous years.

19.22 	Sec. 7. Minnesota Statutes 2004, section 121A.06,
19.23 	subdivision 2, is amended to read:
19.24 		Subd. 2.Reports; content. By January 1, 1994, the
19.25 	commissioner, in consultation with the criminal and juvenile
19.26 	information policy group, shall develop a standardized form to
19.27 	be used by schools to report incidents involving the use or
19.28 	possession of a dangerous weapon in school zones.School
19.29 	districts must electronically report to the commissioner of
19.30 	education incidents involving the use or possession of a
19.31 	dangerous weapon in school zones.The form shall must include
19.32 	the following information:
19.33 	(1) a description of each incident, including a description
19.34 	of the dangerous weapon involved in the incident;
19.35 	(2) where, at what time, and under what circumstances the
19.36 	incident occurred;
20.1 	(3) information about the offender, other than the
20.2 	offender's name, including the offender's age; whether the
20.3 	offender was a student and, if so, where the offender attended
20.4 	school; and whether the offender was under school expulsion or
20.5 	suspension at the time of the incident;
20.6 	(4) information about the victim other than the victim's
20.7 	name, if any, including the victim's age; whether the victim was
20.8 	a student and, if so, where the victim attended school; and if
20.9 	the victim was not a student, whether the victim was employed at
20.10 	the school;
20.11 	(5) the cost of the incident to the school and to the
20.12 	victim; and
20.13 	(6) the action taken by the school administration to
20.14 	respond to the incident.
20.15 	The commissioner also shall develop provide an alternative 
20.16 	electronic reporting format that allows school districts to
20.17 	provide aggregate data, with an option to use computer
20.18 	technology to report the data.

20.19 	Sec. 8. Minnesota Statutes 2004, section 121A.06,
20.20 	subdivision 3, is amended to read:
20.21 		Subd. 3.Reports; filing requirements.  By February 1 and 
20.22 	July 1 31 of each year, each public school shall report
20.23 	incidents involving the use or possession of a dangerous weapon
20.24 	in school zones to the commissioner.  The reports must be made
20.25 	on the standardized forms or using the alternative
20.26 	format submitted using the electronic reporting system developed
20.27 	by the commissioner under subdivision 2.  The commissioner shall
20.28 	compile the information it receives from the schools and report
20.29 	it annually to the commissioner of public safety, the criminal
20.30 	and juvenile information policy group,and the legislature.

20.31 	Sec. 9. Minnesota Statutes 2004, section 121A.53, is
20.32 	amended to read:
20.33 	121A.53 REPORT TO COMMISSIONER OF EDUCATION.
20.34 		Subdivision 1.Exclusions and expulsions. The school
20.35 	board shall must report through the department electronic
20.36 	reporting system each exclusion or expulsion within 30 days of
21.1 	the effective date of the action to the commissioner of
21.2 	education.  This report shall must include a statement of
21.3 	alternative educational services given the pupil and the reason
21.4 	for, the effective date, and the duration of the exclusion or
21.5 	expulsion. The report must also include the student's age,
21.6 	grade, gender, race, and special education status.
21.7 		Subd. 2.Report. The school board must include state
21.8 	student identification numbers of affected pupils on all
21.9 	dismissal reports required by the department.  The department
21.10 	must report annually to the commissioner summary data on the
21.11 	number of dismissals by age, grade, gender, race, and special
21.12 	education status of the affected pupils. All dismissal reports
21.13 	must be submitted through the department electronic reporting
21.14 	system.

21.15 	Sec. 10. Minnesota Statutes 2004, section 122A.06,
21.16 	subdivision 4, is amended to read:
21.17 		Subd. 4.Comprehensive, scientifically based reading
21.18 	instruction. "Comprehensive, scientifically based reading
21.19 	instruction" includes instruction and practice in phonemic
21.20 	awareness, phonics and other word-recognition skills, and guided
21.21 	oral reading for beginning readers, as well as extensive silent
21.22 	reading, vocabulary instruction, instruction in comprehension,
21.23 	and instruction that fosters understanding and higher-order
21.24 	thinking for readers of all ages and proficiency
21.25 	levels."Comprehensive, scientifically based reading
21.26 	instruction" includes a program or collection of instructional
21.27 	practices with demonstrated success in instructing learners and
21.28 	reliable and valid evidence to support the conclusion that when
21.29 	these methods are used with learners, they can be expected to
21.30 	achieve, at a minimum, satisfactory progress in reading
21.31 	achievement.  The program or collection of practices must
21.32 	include, at a minimum, instruction in five areas of reading:
21.33 	phonemic awareness, phonics, fluency, vocabulary, and text
21.34 	comprehension.
21.35 	Comprehensive, scientifically based reading instruction
21.36 	also includes and integrates instructional strategies for
22.1 	continuously assessing and evaluating the learner's reading
22.2 	progress and needs in order to design and implement ongoing
22.3 	interventions so that learners of all ages and proficiency
22.4 	levels can read and comprehend text and apply higher level
22.5 	thinking skills.

22.6 	Sec. 11. Minnesota Statutes 2004, section 122A.09,
22.7 	subdivision 4, is amended to read:
22.8 		Subd. 4.License and rules.  (a) The board must adopt
22.9 	rules to license public school teachers and interns subject to
22.10 	chapter 14.
22.11 	(b) The board must adopt rules requiring a person to
22.12 	successfully complete a skills examination in reading, writing,
22.13 	and mathematics as a requirement for initial teacher licensure.
22.14 	Such rules must require college and universities offering a
22.15 	board-approved teacher preparation program to provide remedial
22.16 	assistance to persons who did not achieve a qualifying score on
22.17 	the skills examination, including those for whom English is a
22.18 	second language.
22.19 	(c) The board must adopt rules to approve teacher
22.20 	preparation programs.  The board, upon the request of a
22.21 	postsecondary student preparing for teacher licensure or a
22.22 	licensed graduate of a teacher preparation program, shall assist
22.23 	in resolving a dispute between the person and a postsecondary
22.24 	institution providing a teacher preparation program when the
22.25 	dispute involves an institution's recommendation for licensure
22.26 	affecting the person or the person's credentials.  At the
22.27 	board's discretion, assistance may include the application of
22.28 	chapter 14.
22.29 	(d) The board must provide the leadership and shall adopt
22.30 	rules for the redesign of teacher education programs to
22.31 	implement a research based, results-oriented curriculum that
22.32 	focuses on the skills teachers need in order to be effective.
22.33 	The board shall implement new systems of teacher preparation
22.34 	program evaluation to assure program effectiveness based on
22.35 	proficiency of graduates in demonstrating attainment of program
22.36 	outcomes.
23.1 	(e) The board must adopt rules requiring successful
23.2 	completion of an examination of general pedagogical knowledge
23.3 	and examinations of licensure-specific teaching skills.  The
23.4 	rules shall be effective on the dates determined by the board
23.5 	but not later than September 1, 2001.
23.6 	(f) The board must adopt rules requiring teacher educators
23.7 	to work directly with elementary or secondary school teachers in
23.8 	elementary or secondary schools to obtain periodic exposure to
23.9 	the elementary or secondary teaching environment.
23.10 	(g) The board must grant licenses to interns and to
23.11 	candidates for initial licenses.
23.12 	(h) The board must design and implement an assessment
23.13 	system which requires a candidate for an initial license and
23.14 	first continuing license to demonstrate the abilities necessary
23.15 	to perform selected, representative teaching tasks at
23.16 	appropriate levels.
23.17 	(i) The board must receive recommendations from local
23.18 	committees as established by the board for the renewal of
23.19 	teaching licenses.
23.20 	(j) The board must grant life licenses to those who qualify
23.21 	according to requirements established by the board, and suspend
23.22 	or revoke licenses pursuant to sections 122A.20 and 214.10.  The
23.23 	board must not establish any expiration date for application for
23.24 	life licenses.
23.25 	(k) The board must adopt rules that require all licensed
23.26 	teachers who are renewing their continuing license to include in
23.27 	their renewal requirements further preparation in the areas of
23.28 	using positive behavior interventions and in accommodating,
23.29 	modifying, and adapting curricula, materials, and strategies to
23.30 	appropriately meet the needs of individual students and ensure
23.31 	adequate progress toward the state's graduation rule.
23.32 	(l) In adopting rules to license public school teachers who
23.33 	provide health-related services for disabled children, the board
23.34 	shall adopt rules consistent with license or registration
23.35 	requirements of the commissioner of health and the
23.36 	health-related boards who license personnel who perform similar
24.1 	services outside of the school.
24.2 	(m) The board must adopt rules that require all licensed
24.3 	teachers who are renewing their continuing license to include in
24.4 	their renewal requirements further reading preparation,
24.5 	consistent with section 122A.06, subdivision 4.  The rules do
24.6 	not take effect until they are approved by law.  Teachers who do
24.7 	not provide direct instruction including, at least, counselors,
24.8 	school psychologists, school nurses, school social workers,
24.9 	audiovisual directors and coordinators, and recreation personnel
24.10 	are exempt from this section.
24.11 	(n) The board must adopt rules that require all licensed
24.12 	teachers who are renewing their continuing license to include in
24.13 	their renewal requirements further preparation in understanding
24.14 	the key warning signs of early-onset mental illness in children
24.15 	and adolescents.
24.16 	(o) The board must:
24.17 	(1) adopt rules to license qualified candidates to teach
24.18 	chemistry, physics, biology, and earth and space science; and 
24.19 	(2) license a science teacher to teach in a new science
24.20 	content area or level if the teacher holds a continuing license
24.21 	to teach science and receives a qualifying score on an
24.22 	appropriate Praxis II test in a science subject other than the
24.23 	teacher's currently licensed science field or level.  A
24.24 	qualifying score is the same test score used for initial
24.25 	licenses to teach science.  A science teacher who seeks
24.26 	licensure in a different science content area or level under
24.27 	this paragraph is responsible for the actual costs of the
24.28 	required testing.

24.29 	Sec. 12. Minnesota Statutes 2004, section 122A.18,
24.30 	subdivision 2a, is amended to read:
24.31 		Subd. 2a.Reading strategies.  (a) All colleges and
24.32 	universities approved by the Board of Teaching to prepare
24.33 	persons for classroom teacher licensure must include in their
24.34 	teacher preparation programs reading best practices that enable
24.35 	classroom teacher licensure candidates to know how to teach
24.36 	reading, such as phonics or other research-based best practices
25.1 	in reading, consistent with section 122A.06, subdivision 4, that
25.2 	enable the licensure candidate to know how to teach reading in
25.3 	the candidate's content areas.
25.4 	(b) Board-approved teacher preparation programs for
25.5 	teachers of elementary education must require instruction in the
25.6 	application of comprehensive, scientifically based, and balanced
25.7 	reading instruction programs.that:
25.8 	(1) teach students to read using foundational knowledge,
25.9 	practices, and strategies consistent with section 122A.06,
25.10 	subdivision 4, so that all students will achieve continuous
25.11 	progress in reading; and 
25.12 	(2) teach specialized instruction in reading strategies,
25.13 	interventions, and remediations that enable students of all ages
25.14 	and proficiency levels to become proficient readers.

25.15 	Sec. 13. Minnesota Statutes 2004, section 123B.143,
25.16 	subdivision 1, is amended to read:
25.17 		Subdivision 1.Contract; duties.  All districts
25.18 	maintaining a classified secondary school must employ a
25.19 	superintendent who shall be an ex officio nonvoting member of
25.20 	the school board.  The authority for selection and employment of
25.21 	a superintendent must be vested in the board in all cases.  An
25.22 	individual employed by a board as a superintendent shall have an
25.23 	initial employment contract for a period of time no longer than
25.24 	three years from the date of employment.  Any subsequent
25.25 	employment contract must not exceed a period of three years.  A
25.26 	board, at its discretion, may or may not renew an employment
25.27 	contract.  A board must not, by action or inaction, extend the
25.28 	duration of an existing employment contract.  Beginning 365 days
25.29 	prior to the expiration date of an existing employment contract,
25.30 	a board may negotiate and enter into a subsequent employment
25.31 	contract to take effect upon the expiration of the existing
25.32 	contract.  A subsequent contract must be contingent upon the
25.33 	employee completing the terms of an existing contract.  If a
25.34 	contract between a board and a superintendent is terminated
25.35 	prior to the date specified in the contract, the board may not
25.36 	enter into another superintendent contract with that same
26.1 	individual that has a term that extends beyond the date
26.2 	specified in the terminated contract.  A board may terminate a
26.3 	superintendent during the term of an employment contract for any
26.4 	of the grounds specified in section 122A.40, subdivision 9 or 13.
26.5 	A superintendent shall not rely upon an employment contract with
26.6 	a board to assert any other continuing contract rights in the
26.7 	position of superintendent under section 122A.40.
26.8 	Notwithstanding the provisions of sections 122A.40, subdivision
26.9 	10 or 11, 123A.32, 123A.75, or any other law to the contrary, no
26.10 	individual shall have a right to employment as a superintendent
26.11 	based on order of employment in any district.  If two or more
26.12 	districts enter into an agreement for the purchase or sharing of
26.13 	the services of a superintendent, the contracting districts have
26.14 	the absolute right to select one of the individuals employed to
26.15 	serve as superintendent in one of the contracting districts and
26.16 	no individual has a right to employment as the superintendent to
26.17 	provide all or part of the services based on order of employment
26.18 	in a contracting district. The superintendent of a district
26.19 	shall perform the following:
26.20 	(1) visit and supervise the schools in the district, report
26.21 	and make recommendations about their condition when advisable or
26.22 	on request by the board;
26.23 	(2) recommend to the board employment and dismissal of
26.24 	teachers;
26.25 	(3) superintend school grading practices and examinations
26.26 	for promotions;
26.27 	(4) make reports required by the commissioner; and 
26.28 	(5) by January 10, submit an annual report to the
26.29 	commissioner in a manner prescribed by the commissioner, in
26.30 	consultation with school districts, identifying the expenditures
26.31 	that the district requires to ensure an 80 percent student
26.32 	passage rate on the basic standards test taken in the eighth
26.33 	grade, identifying the highest student passage rate the district
26.34 	expects it will be able to attain on the basic standards test by
26.35 	grade 12, the amount of expenditures that the district requires
26.36 	to attain the targeted student passage rate, and how much the
27.1 	district is cross-subsidizing programs with special education,
27.2 	basic skills, and general education revenue; and 
27.3 	(6) perform other duties prescribed by the board.

27.4 	Sec. 14. Minnesota Statutes 2004, section 123B.36,
27.5 	subdivision 1, is amended to read:
27.6 		Subdivision 1.School boards may require fees.  (a) For
27.7 	purposes of this subdivision, "home school" means a home school
27.8 	as defined in sections 120A.22 and 120A.24 with five or fewer
27.9 	students receiving instruction.
27.10 	(b) A school board is authorized to require payment of fees
27.11 	in the following areas:
27.12 	(1) in any program where the resultant product, in excess
27.13 	of minimum requirements and at the pupil's option, becomes the
27.14 	personal property of the pupil;
27.15 	(2) admission fees or charges for extra curricular
27.16 	activities, where attendance is optional and where the admission
27.17 	fees or charges a student must pay to attend or participate in
27.18 	an extracurricular activity is the same for all students,
27.19 	regardless of whether the student is enrolled in a public or a
27.20 	home school;
27.21 	(3) a security deposit for the return of materials,
27.22 	supplies, or equipment;
27.23 	(4) personal physical education and athletic equipment and
27.24 	apparel, although any pupil may personally provide it if it
27.25 	meets reasonable requirements and standards relating to health
27.26 	and safety established by the board;
27.27 	(5) items of personal use or products that a student has an
27.28 	option to purchase such as student publications, class rings,
27.29 	annuals, and graduation announcements;
27.30 	(6) fees specifically permitted by any other statute,
27.31 	including but not limited to section 171.05, subdivision 2;
27.32 	provided (i) driver education fees do not exceed the actual cost
27.33 	to the school and school district of providing driver education,
27.34 	and (ii) the driver education courses are open to enrollment to
27.35 	persons between the ages of 15 and 18 who reside or attend
27.36 	school in the school district;
28.1 	(7) field trips considered supplementary to a district
28.2 	educational program;
28.3 	(8) any authorized voluntary student health and accident
28.4 	benefit plan;
28.5 	(9) for the use of musical instruments owned or rented by
28.6 	the district, a reasonable rental fee not to exceed either the
28.7 	rental cost to the district or the annual depreciation plus the
28.8 	actual annual maintenance cost for each instrument;
28.9 	(10) transportation of pupils to and from extra curricular
28.10 	activities conducted at locations other than school, where
28.11 	attendance is optional, and transportation of charter school
28.12 	students participating in extracurricular activities in their
28.13 	resident district under section 123B.49, subdivision 4,
28.14 	paragraph (a), which must be charged to the charter school;
28.15 	(11) transportation to and from school of pupils living
28.16 	within two miles from school and all other transportation
28.17 	services not required by law.  If a district charges fees for
28.18 	transportation of pupils, it must establish guidelines for that
28.19 	transportation to ensure that no pupil is denied transportation
28.20 	solely because of inability to pay;
28.21 	(12) motorcycle classroom education courses conducted
28.22 	outside of regular school hours; provided the charge must not
28.23 	exceed the actual cost of these courses to the school district;
28.24 	(13) transportation to and from postsecondary institutions
28.25 	for pupils enrolled under the postsecondary enrollment options
28.26 	program under section 123B.88, subdivision 22.  Fees collected
28.27 	for this service must be reasonable and must be used to reduce
28.28 	the cost of operating the route.  Families who qualify for
28.29 	mileage reimbursement under section 124D.09, subdivision 22, may
28.30 	use their state mileage reimbursement to pay this fee.  If no
28.31 	fee is charged, districts must allocate costs based on the
28.32 	number of pupils riding the route.

28.33 	Sec. 15. Minnesota Statutes 2004, section 123B.49,
28.34 	subdivision 4, is amended to read:
28.35 		Subd. 4.Board control of extracurricular activities.
 28.36 	(a) The board may take charge of and control all extracurricular
29.1 	activities of the teachers and children of the public schools in
29.2 	the district.  Extracurricular activities means all direct and
29.3 	personal services for pupils for their enjoyment that are
29.4 	managed and operated under the guidance of an adult or staff
29.5 	member.  The board shall allow all resident pupils receiving
29.6 	instruction in a home school as defined in section 123B.36,
29.7 	subdivision 1, paragraph (a), and all resident pupils receiving
29.8 	instruction in a charter school as defined in section 124D.10to
29.9 	be eligible to fully participate in extracurricular activities
29.10 	on the same basis as public school students enrolled in the
29.11 	district's schools.  A charter school student must give the
29.12 	enrolling charter school at least a 30-day notice of the
29.13 	student's intent to participate in an extracurricular activity
29.14 	in the resident district.  A charter school student is not
29.15 	eligible to participate in an extracurricular activity in the
29.16 	resident district if that extracurricular activity is offered by
29.17 	the enrolling charter school or the extracurricular activity is
29.18 	not controlled by the high school league under chapter 128C.
29.19 	Charter school students participating in extracurricular
29.20 	activities must meet the academic and student conduct
29.21 	requirements of the resident district.  The charter school must:
29.22 	(1) collect the same information that a district collects
29.23 	on a student's eligibility to participate in an extracurricular
29.24 	activity;
29.25 	(2) transmit that information to the district at least ten
29.26 	days before a student begins to participate in the
29.27 	extracurricular activity; and 
29.28 	(3) immediately transmit to the district any additional
29.29 	information affecting the student's eligibility.
29.30 	(b) Extracurricular activities have all of the following
29.31 	characteristics:
29.32 	(1) they are not offered for school credit nor required for
29.33 	graduation;
29.34 	(2) they are generally conducted outside school hours, or
29.35 	if partly during school hours, at times agreed by the
29.36 	participants, and approved by school authorities;
30.1 	(3) the content of the activities is determined primarily
30.2 	by the pupil participants under the guidance of a staff member
30.3 	or other adult.
30.4 	(c) If the board does not take charge of and control
30.5 	extracurricular activities, these activities shall be
30.6 	self-sustaining with all expenses, except direct salary costs
30.7 	and indirect costs of the use of school facilities, met by dues,
30.8 	admissions, or other student fund-raising events.  The general
30.9 	fund must reflect only those salaries directly related to and
30.10 	readily identified with the activity and paid by public funds.
30.11 	Other revenues and expenditures for extra curricular activities
30.12 	must be recorded according to the "Manual of Instruction for
30.13 	Uniform Student Activities Activity Fund Accounting for
30.14 	Minnesota School Districts and Area Vocational-Technical
30.15 	Colleges."  Extracurricular activities not under board control
30.16 	must have an annual financial audit and must also be audited
30.17 	annually for compliance with this section.
30.18 	(d) If the board takes charge of and controls
30.19 	extracurricular activities, any or all costs of these activities
30.20 	may be provided from school revenues and all revenues and
30.21 	expenditures for these activities shall be recorded in the same
30.22 	manner as other revenues and expenditures of the district.
30.23 	(e) If the board takes charge of and controls
30.24 	extracurricular activities, the teachers or pupils in the
30.25 	district must not participate in such activity, nor shall the
30.26 	school name or any allied name be used in connection therewith,
30.27 	except by consent and direction of the board.
30.28 	(f) School districts may charge charter schools their
30.29 	proportional share of the direct and indirect costs of the
30.30 	extracurricular activities that are not covered by student fees
30.31 	under section 123B.36, subdivision 1.  A district may charge
30.32 	charter school students the same fees it charges enrolled
30.33 	students to participate in an extracurricular activity.  A
30.34 	district is not required to provide transportation from the
30.35 	charter school to the resident district for a charter school
30.36 	student who participates in an extracurricular activity in the
31.1 	resident district.
31.2 	
EFFECTIVE DATE. This section is effective for the
31.3 	2005-2006 school year and later.

31.4 	Sec. 16. Minnesota Statutes 2004, section 124D.095,
31.5 	subdivision 8, is amended to read:
31.6 		Subd. 8.Financial arrangements.  (a) For a student
31.7 	enrolled in an on-line learning course, the department must
31.8 	calculate average daily membership and make payments according
31.9 	to this subdivision.
31.10 	(b) The initial on-line learning average daily membership
31.11 	equals 1/12 for each semester course or a proportionate amount
31.12 	for courses of different lengths.  The adjusted on-line learning
31.13 	average daily membership equals the initial on-line learning
31.14 	average daily membership times .88.
31.15 	(c) No on-line learning average daily membership shall be
31.16 	generated if:  (1) the student does not complete the on-line
31.17 	learning course, or (2) the student is enrolled in on-line
31.18 	learning provided by the enrolling district and the student
31.19 	was either enrolled in a Minnesota public school for the school
31.20 	year before the school year in which the student first enrolled
31.21 	in on-line learning, or the student is enrolled in an
31.22 	instructional program in which at least 40 percent of the total
31.23 	instructional time takes place in the school's facilities.  For
31.24 	students enrolled in on-line learning according to clause (2),
31.25 	the department shall calculate average daily membership
31.26 	according to section 126C.05, subdivision 8.
31.27 	(d) On-line learning average daily membership under this
31.28 	subdivision for a student currently enrolled in a Minnesota
31.29 	public school and who was enrolled in a Minnesota public school
31.30 	for the school year before the school year in which the student
31.31 	first enrolled in on-line learning shall be used only for
31.32 	computing average daily membership according to section 126C.05,
31.33 	subdivision 19, paragraph (a), clause (ii) (2), and for
31.34 	computing on-line learning aid according to section 126C.24.
31.35 	(e) On-line learning average daily membership under this
31.36 	subdivision for students not included in paragraph (c) or (d)
32.1 	shall be used only for computing average daily membership
32.2 	according to section 126C.05, subdivision 19, paragraph (a),
32.3 	clause (ii) (2), and for computing payments under paragraphs (f)
32.4 	and (g).
32.5 	(f) Subject to the limitations in this subdivision, the
32.6 	department must pay an on-line learning provider an amount equal
32.7 	to the product of the adjusted on-line learning average daily
32.8 	membership for students under paragraph (e) times the student
32.9 	grade level weighting under section 126C.05, subdivision 1,
32.10 	times the formula allowance.
32.11 	(g) The department must pay each on-line learning provider
32.12 	100 percent of the amount in paragraph (f) within 45 days of
32.13 	receiving final enrollment and course completion information
32.14 	each quarter or semester.
32.15 	
EFFECTIVE DATE. This section is effective the day
32.16 	following final enactment.

32.17 	Sec. 17. Minnesota Statutes 2004, section 124D.10,
32.18 	subdivision 3, is amended to read:
32.19 		Subd. 3.Sponsor.  (a) A school board; intermediate
32.20 	school district school board; education district organized under
32.21 	sections 123A.15 to 123A.19; charitable organization under
32.22 	section 501(c)(3) of the Internal Revenue Code of 1986 that is a
32.23 	member of the Minnesota Council of Nonprofits or the Minnesota
32.24 	Council on Foundations, registered with the attorney general's
32.25 	office, and reports an end-of-year fund balance of at least
32.26 	$2,000,000; Minnesota private college that grants two- or
32.27 	four-year degrees and is registered with the Higher Education
32.28 	Services Office under chapter 136A; community college, state
32.29 	university, or technical college, governed by the Board of
32.30 	Trustees of the Minnesota State Colleges and Universities; or
32.31 	the University of Minnesota may sponsor one or more charter
32.32 	schools.
32.33 	(b) A nonprofit corporation subject to chapter 317A,
32.34 	described in section 317A.905, and exempt from federal income
32.35 	tax under section 501(c)(6) of the Internal Revenue Code of
32.36 	1986, may sponsor one or more charter schools if the charter
33.1 	school has operated for at least three years under a different
33.2 	sponsor and if the nonprofit corporation has existed for at
33.3 	least 25 years.
33.4 	(c) The commissioner of education may approve up to five
33.5 	charitable organizations under section 501(c)(3) of the Internal
33.6 	Revenue Code of 1986 which have as their primary activity the
33.7 	sponsoring of charter schools.  Proposals of the charitable
33.8 	organizations to the commissioner must contain:
33.9 	(1) the articles, bylaws, and initial board membership;
33.10 	(2) the sources of financing for its operation;
33.11 	(3) the areas of specialization of its sponsorship; and 
33.12 	(4) other information requested by the department.
33.13 	Sponsors approved under this paragraph shall report annually to
33.14 	the commissioner on the types of charter schools sponsored,
33.15 	their effectiveness in promoting student achievement; the
33.16 	development of alternative school governance structures, and
33.17 	other information requested by the department.  The commissioner
33.18 	may terminate its authorization for a charitable organization to
33.19 	sponsor a charter school under this paragraph if the charitable
33.20 	organization demonstrates persistent financial mismanagement or
33.21 	repeated violations of law.

33.22 	Sec. 18. Minnesota Statutes 2004, section 124D.10,
33.23 	subdivision 4, is amended to read:
33.24 		Subd. 4.Formation of school.  (a) A sponsor may
33.25 	authorize one or more licensed teachers under section 122A.18,
33.26 	subdivision 1, to operate a charter school subject to approval
33.27 	by the commissioner.  A board must vote on charter school
33.28 	application for sponsorship no later than 90 days after
33.29 	receiving the application.  After 90 days, the applicant may
33.30 	apply to the commissioner.  If a board elects not to sponsor a
33.31 	charter school, the applicant may appeal the board's decision to
33.32 	the commissioner.  The commissioner may elect to sponsor the
33.33 	charter school or assist the applicant in finding an eligible
33.34 	sponsor.  The school must be organized and operated as a
33.35 	cooperative under chapter 308A or nonprofit corporation under
33.36 	chapter 317A and the provisions under the applicable chapter
34.1 	shall apply to the school except as provided in this section.
34.2 	Notwithstanding sections 465.717 and 465.719, a school district
34.3 	may create a corporation for the purpose of creating a charter
34.4 	school.
34.5 	(b) Before the operators may form and operate a school, the
34.6 	sponsor must file an affidavit with the commissioner stating its
34.7 	intent to authorize a charter school.  The affidavit must state
34.8 	the terms and conditions under which the sponsor would authorize
34.9 	a charter school.  The commissioner must approve or disapprove
34.10 	the sponsor's proposed authorization within 60 90 days of
34.11 	receipt of the affidavit.  Failure to obtain commissioner
34.12 	approval precludes a sponsor from authorizing the charter school
34.13 	that was the subject of the affidavit.
34.14 	(c) The operators authorized to organize and operate a
34.15 	school, before entering into a contract or other agreement for
34.16 	professional or other services, goods, or facilities, must
34.17 	incorporate as a cooperative under chapter 308A or as a
34.18 	nonprofit corporation under chapter 317A and must establish a
34.19 	board of directors composed of at least five members until a
34.20 	timely election for members of the charter school board of
34.21 	directors is held according to the school's articles and
34.22 	bylaws.  A charter school board of directors must be composed of
34.23 	at least five members.  Any staff members who are employed at
34.24 	the school, including teachers providing instruction under a
34.25 	contract with a cooperative, and all parents of children
34.26 	enrolled in the school may participate in the election for
34.27 	members of the school's board of directors.  Licensed teachers
34.28 	employed at the school, including teachers providing instruction
34.29 	under a contract with a cooperative, must be a majority of the
34.30 	members of the board of directors before the school completes
34.31 	its third year of operation, unless the commissioner waives the
34.32 	requirement for a majority of licensed teachers on the board.
34.33 	Board of director meetings must comply with chapter 13D.
34.34 	(d) The granting or renewal of a charter by a sponsoring
34.35 	entity must not be conditioned upon the bargaining unit status
34.36 	of the employees of the school.
35.1 	(e) A sponsor may authorize the operators of a charter
35.2 	school to expand the operation of the charter school to
35.3 	additional sites or to add additional grades at the school
35.4 	beyond those described in the sponsor's application as approved
35.5 	by the commissioner only after submitting a supplemental
35.6 	application to the commissioner in a form and manner prescribed
35.7 	by the commissioner.  The supplemental application must provide
35.8 	evidence that:
35.9 	(1) the expansion of the charter school is supported by
35.10 	need and projected enrollment;
35.11 	(2) the charter school is fiscally sound;
35.12 	(3) the sponsor supports the expansion; and
35.13 	(4) the building of the additional site meets all health
35.14 	and safety requirements to be eligible for lease aid.
35.15 	(f) The commissioner annually must provide timely financial
35.16 	management training to newly elected members of a charter school
35.17 	board of directors and ongoing training to other members of a
35.18 	charter school board of directors.  Training must address ways
35.19 	to:
35.20 	(1) proactively assess opportunities for a charter school
35.21 	to maximize all available revenue sources;
35.22 	(2) establish and maintain complete, auditable records for
35.23 	the charter school;
35.24 	(3) establish proper filing techniques;
35.25 	(4) document formal actions of the charter school,
35.26 	including meetings of the charter school board of directors;
35.27 	(5) properly manage and retain charter school and student
35.28 	records;
35.29 	(6) comply with state and federal payroll record-keeping
35.30 	requirements; and
35.31 	(7) address other similar factors that facilitate
35.32 	establishing and maintaining complete records on the charter
35.33 	school's operations.

35.34 	Sec. 19. Minnesota Statutes 2004, section 124D.10,
35.35 	subdivision 8, is amended to read:
35.36 		Subd. 8.State and local requirements.  (a) A charter
36.1 	school shall meet all applicable state and local health and
36.2 	safety requirements.
36.3 	(b) A school sponsored by a school board may be located in
36.4 	any district, unless the school board of the district of the
36.5 	proposed location disapproves by written resolution.
36.6 	(c) A charter school must be nonsectarian in its programs,
36.7 	admission policies, employment practices, and all other
36.8 	operations.  A sponsor may not authorize a charter school or
36.9 	program that is affiliated with a nonpublic sectarian school or
36.10 	a religious institution.
36.11 	(d) Charter schools must not be used as a method of
36.12 	providing education or generating revenue for students who are
36.13 	being home-schooled.
36.14 	(e) The primary focus of a charter school must be to
36.15 	provide a comprehensive program of instruction for at least one
36.16 	grade or age group from five through 18 years of age.
36.17 	Instruction may be provided to people younger than five years
36.18 	and older than 18 years of age.
36.19 	(f) A charter school may not charge tuition.
36.20 	(g) A charter school is subject to and must comply with
36.21 	chapter 363A and section 121A.04.
36.22 	(h) A charter school is subject to and must comply with the
36.23 	Pupil Fair Dismissal Act, sections 121A.40 to 121A.56, and the
36.24 	Minnesota Public School Fee Law, sections 123B.34 to 123B.39.
36.25 	(i) A charter school is subject to the same financial
36.26 	audits, audit procedures, and audit requirements as a district.
36.27 	Audits must be conducted in compliance with generally accepted
36.28 	governmental auditing standards, the Federal Single Audit Act,
36.29 	if applicable, and section 6.65.  A charter school is subject to
36.30 	and must comply with sections 15.054; 118A.01; 118A.02; 118A.03;
36.31 	118A.04; 118A.05; 118A.06; 123B.52, subdivision 5; 471.38;
36.32 	471.391; 471.392; 471.425; 471.87; 471.88, subdivisions 1, 2, 3,
36.33 	4, 5, 6, 12, 13, and 15; 471.881; and 471.89.  The audit must
36.34 	comply with the requirements of sections 123B.75 to 123B.83,
36.35 	except to the extent deviations are necessary because of the
36.36 	program at the school.  Deviations must be approved by the
37.1 	commissioner.  The Department of Education, state auditor, or
37.2 	legislative auditor may conduct financial, program, or
37.3 	compliance audits.  A charter school determined to be in
37.4 	statutory operating debt under sections 123B.81 to 123B.83 must
37.5 	submit a plan under section 123B.81, subdivision 4.
37.6 	(j) A charter school is a district for the purposes of tort
37.7 	liability under chapter 466.
37.8 	(k) A charter school must comply with sections 13.32;
37.9 	120A.22, subdivision 7; 121A.75; and 260B.171, subdivisions 3
37.10 	and 5.
37.11 	(l) A charter school is subject to the Pledge of Allegiance
37.12 	requirement under section 121A.11, subdivision 3.
37.13 	(m) A charter school is subject to sections 123B.36,
37.14 	subdivision 1, paragraph (b), clause (10), and 123B.49,
37.15 	subdivision 4, paragraph (a), when its students participate in
37.16 	extracurricular activities in their resident district.
37.17 	
EFFECTIVE DATE. This section is effective for the
37.18 	2005-2006 school year and later.

37.19 	Sec. 20. Minnesota Statutes 2004, section 124D.11,
37.20 	subdivision 1, is amended to read:
37.21 		Subdivision 1.General education revenue.  (a) General
37.22 	education revenue must be paid to a charter school as though it
37.23 	were a district.  The general education revenue for each
37.24 	adjusted marginal cost pupil unit is the state average general
37.25 	education revenue per pupil unit, plus the referendum
37.26 	equalization aid allowance in the pupil's district of residence,
37.27 	minus an amount equal to the product of the formula allowance
37.28 	according to section 126C.10, subdivision 2, times .0485,
37.29 	calculated without basic skills revenue, extended time revenue,
37.30 	transition revenue,and transportation sparsity revenue, plus
37.31 	basic skills revenue, extended time revenue,and transition
37.32 	revenue as though the school were a school district. The
37.33 	general education revenue for each extended time marginal cost
37.34 	pupil unit equals $4,378.
37.35 	(b) Notwithstanding paragraph (a), for charter schools in
37.36 	the first year of operation, general education revenue shall be
38.1 	computed using the number of adjusted pupil units in the current
38.2 	fiscal year.

38.3 	Sec. 21. Minnesota Statutes 2004, section 124D.11,
38.4 	subdivision 6, is amended to read:
38.5 		Subd. 6.Other aid, grants, revenue.  (a) A charter
38.6 	school is eligible to receive other aids, grants, and revenue
38.7 	according to chapters 120A to 129C, as though it were a district.
38.8 	(b) Notwithstanding paragraph (a), a charter school may not
38.9 	receive aid, a grant, or revenue if a levy is required to obtain
38.10 	the money, or if the aid, grant, or revenue is a replacement of
38.11 	levy revenue,except as otherwise provided in this section.
38.12 	(c) Federal aid received by the state must be paid to the
38.13 	school, if it qualifies for the aid as though it were a school
38.14 	district.
38.15 	(d) A charter school may receive money from any source for
38.16 	capital facilities needs.  In the year-end report to the
38.17 	commissioner of education, the charter school shall report the
38.18 	total amount of funds received from grants and other outside
38.19 	sources.

38.20 	Sec. 22. Minnesota Statutes 2004, section 124D.74,
38.21 	subdivision 1, is amended to read:
38.22 		Subdivision 1.Program described.  American Indian
38.23 	education programs are programs in public elementary and
38.24 	secondary schools, nonsectarian nonpublic, community,
38.25 	tribal, charter,or alternative schools enrolling American
38.26 	Indian children designed to:
38.27 	(1) support postsecondary preparation for pupils;
38.28 	(2) support the academic achievement of American Indian
38.29 	students with identified focus to improve reading and mathematic
38.30 	skills;
38.31 	(3) make the curriculum more relevant to the needs,
38.32 	interests, and cultural heritage of American Indian pupils;
38.33 	(4) provide positive reinforcement of the self-image of
38.34 	American Indian pupils;
38.35 	(5) develop intercultural awareness among pupils, parents,
38.36 	and staff; and
39.1 	(6) supplement, not supplant, state and federal educational
39.2 	and cocurricular programs.
39.3 	Program components may include:  development of support
39.4 	components for students in the areas of academic achievement,
39.5 	retention, and attendance; development of support components for
39.6 	staff, including in-service training and technical assistance in
39.7 	methods of teaching American Indian pupils; research projects,
39.8 	including experimentation with and evaluation of methods of
39.9 	relating to American Indian pupils; provision of personal and
39.10 	vocational counseling to American Indian pupils; modification of
39.11 	curriculum, instructional methods, and administrative procedures
39.12 	to meet the needs of American Indian pupils; and supplemental
39.13 	instruction in American Indian language, literature, history,
39.14 	and culture.  Districts offering programs may make contracts for
39.15 	the provision of program components by establishing cooperative
39.16 	liaisons with tribal programs and American Indian social service
39.17 	agencies.  These programs may also be provided as components of
39.18 	early childhood and family education programs.

39.19 	Sec. 23. Minnesota Statutes 2004, section 124D.81,
39.20 	subdivision 1, is amended to read:
39.21 		Subdivision 1.Grants; procedures.  Each fiscal year the
39.22 	commissioner of education must make grants to no fewer than six
39.23 	American Indian education programs.  At least three programs
39.24 	must be in urban areas and at least three must be on or near
39.25 	reservations.  The board of a local district, a participating
39.26 	school or a group of boards may develop a proposal for grants in
39.27 	support of American Indian education programs.  Proposals may
39.28 	provide for contracts for the provision of program components by
39.29 	nonsectarian nonpublic, community, tribal, charter,or
39.30 	alternative schools.  The commissioner shall prescribe the form
39.31 	and manner of application for grants, and no grant shall be made
39.32 	for a proposal not complying with the requirements of sections
39.33 	124D.71 to 124D.82. The commissioner must submit all proposals
39.34 	to the state Advisory Committee on American Indian Education
39.35 	Programs for its recommendations concerning approval,
39.36 	modification, or disapproval and the amounts of grants to
40.1 	approved programs.

40.2 	Sec. 24. Minnesota Statutes 2004, section 124D.84,
40.3 	subdivision 1, is amended to read:
40.4 		Subdivision 1.Awards.  The commissioner, with the advice
40.5 	and counsel of the Minnesota Indian Education Committee,may
40.6 	award scholarships to any Minnesota resident student who is of
40.7 	one-fourth or more Indian ancestry, who has applied for other
40.8 	existing state and federal scholarship and grant programs, and
40.9 	who, in the opinion of the commissioner, has the capabilities to
40.10 	benefit from further education.  Scholarships must be for
40.11 	accredited degree programs in accredited Minnesota colleges or
40.12 	universities or for courses in accredited Minnesota business,
40.13 	technical, or vocational schools.  Scholarships may also be
40.14 	given to students attending Minnesota colleges that are in
40.15 	candidacy status for obtaining full accreditation, and are
40.16 	eligible for and receiving federal financial aid programs.
40.17 	Students are also eligible for scholarships when enrolled as
40.18 	students in Minnesota higher education institutions that have
40.19 	joint programs with other accredited higher education
40.20 	institutions.  Scholarships shall be used to defray the total
40.21 	cost of education including tuition, incidental fees, books,
40.22 	supplies, transportation, other related school costs and the
40.23 	cost of board and room and shall be paid directly to the college
40.24 	or school concerned where the student receives federal financial
40.25 	aid.  The total cost of education includes all tuition and fees
40.26 	for each student enrolling in a public institution and the
40.27 	portion of tuition and fees for each student enrolling in a
40.28 	private institution that does not exceed the tuition and fees at
40.29 	a comparable public institution.  Each student shall be awarded
40.30 	a scholarship based on the total cost of the student's education
40.31 	and a federal standardized need analysis.  Applicants are
40.32 	encouraged to apply for all other sources of financial aid. The
40.33 	amount and type of each scholarship shall be determined through
40.34 	the advice and counsel of the Minnesota Indian education
40.35 	committee.
40.36 	When an Indian student satisfactorily completes the work
41.1 	required by a certain college or school in a school year the
41.2 	student is eligible for additional scholarships, if additional
41.3 	training is necessary to reach the student's educational and
41.4 	vocational objective.  Scholarships may not be given to any
41.5 	Indian student for more than five years of study without special
41.6 	recommendation of the Minnesota Indian Education Committee.

41.7 	Sec. 25. [127A.52] CROSS-SUBSIDY REPORTS.
41.8 	By January 30 of each year, the commissioner must estimate
41.9 	how much each district cross-subsidized the cost of special
41.10 	education and basic skills programs with general education
41.11 	revenue during the fiscal year ending on June 30 of the previous
41.12 	year.  The commissioner must make the cross-subsidy estimates
41.13 	available to all districts and the public by posting the
41.14 	cross-subsidy reports on the department's Web site.

41.15 	ARTICLE 3
41.16 	SPECIAL PROGRAMS

41.17 	Section 1. Minnesota Statutes 2004, section 125A.24, is
41.18 	amended to read:
41.19 	125A.24 PARENT ADVISORY COUNCILS.
41.20 	In order to increase the involvement of parents of children
41.21 	with disabilities in district policy making and decision making,
41.22 	school districts must have a special education advisory council
41.23 	that is incorporated into the district's special education
41.24 	system plan.
41.25 	(1) This advisory council may be established either for
41.26 	individual districts or in cooperation with other districts who
41.27 	are members of the same special education cooperative.
41.28 	(2) A district may set up this council as a subgroup of an
41.29 	existing board, council, or committee.
41.30 	(3) At least half of the designated council members must be
41.31 	parents of students with a disability. At least one of the
41.32 	members must be a parent of a nonpublic school student with a
41.33 	disability or an employee of a nonpublic school.  Each local
41.34 	council must meet no less than once each year.The number of
41.35 	members, frequency of meetings, and operational procedures are
41.36 	to be locally determined.

42.1 	Sec. 2. Minnesota Statutes 2004, section 125A.28, is
42.2 	amended to read:
42.3 	125A.28 STATE INTERAGENCY COORDINATING COUNCIL.
42.4 	An Interagency Coordinating Council of at least 17, but not
42.5 	more than 25 members is established, in compliance with Public
42.6 	Law 102-119, section 682.  The members must be appointed by the
42.7 	governor.  Council members must elect the council chair.  The
42.8 	representative of the commissioner may not serve as the chair.
42.9 	The council must be composed of at least five parents, including
42.10 	persons of color, of children with disabilities under age 12,
42.11 	including at least three parents of a child with a disability
42.12 	under age seven, five representatives of public or private
42.13 	providers of services for children with disabilities under age
42.14 	five, including a special education director, county social
42.15 	service director, local Head Start director, and a community
42.16 	health services or public health nursing administrator, one
42.17 	member of the senate, one member of the house of
42.18 	representatives, one representative of teacher preparation
42.19 	programs in early childhood-special education or other
42.20 	preparation programs in early childhood intervention, at least
42.21 	one representative of advocacy organizations for children with
42.22 	disabilities under age five, one physician who cares for young
42.23 	children with special health care needs, one representative each
42.24 	from the commissioners of commerce, education, health, human
42.25 	services, a representative from the state agency responsible for
42.26 	child care, and a representative from Indian health services or
42.27 	a tribal council.  Section 15.059, subdivisions 2 to 5, apply to
42.28 	the council.  The council must meet at least quarterly.
42.29 	The council must address methods of implementing the state
42.30 	policy of developing and implementing comprehensive,
42.31 	coordinated, multidisciplinary interagency programs of early
42.32 	intervention services for children with disabilities and their
42.33 	families.
42.34 	The duties of the council include recommending policies to
42.35 	ensure a comprehensive and coordinated system of all state and
42.36 	local agency services for children under age five with
43.1 	disabilities and their families.  The policies must address how
43.2 	to incorporate each agency's services into a unified state and
43.3 	local system of multidisciplinary assessment practices,
43.4 	individual intervention plans, comprehensive systems to find
43.5 	children in need of services, methods to improve public
43.6 	awareness, and assistance in determining the role of interagency
43.7 	early intervention committees.
43.8 	By September 1 On the date that Minnesota Part C Annual
43.9 	Performance Report is submitted to the federal Office of Special
43.10 	Education, the council must recommend to the governor and the
43.11 	commissioners of education, health, human services, commerce,
43.12 	and employment and economic development policies for a
43.13 	comprehensive and coordinated system.
43.14 	Notwithstanding any other law to the contrary, the State
43.15 	Interagency Coordinating Council expires on June 30, 2005 2009.

43.16 	Sec. 3. Minnesota Statutes 2004, section 134.31, is
43.17 	amended by adding a subdivision to read:
43.18 		Subd. 5a.Advisory committee. The commissioner shall
43.19 	appoint an advisory committee of five members to advise the
43.20 	staff of the Minnesota Library for the Blind and Physically
43.21 	Handicapped on long-range plans and library services.  Members
43.22 	shall be people who use the library.  Section 15.059 governs
43.23 	this committee except that the committee shall not expire.

43.24 	ARTICLE 4
43.25 	FACILITIES AND TECHNOLOGY

43.26 	Section 1. Minnesota Statutes 2004, section 123B.59,
43.27 	subdivision 3, is amended to read:
43.28 		Subd. 3.Bond authorization.  (a) A school district may
43.29 	issue general obligation bonds under this section to finance
43.30 	facilities plans approved by its board and the commissioner.
43.31 	Chapter 475, except sections 475.58 and 475.59, must be complied
43.32 	with.  The district may levy under subdivision 5 for the debt
43.33 	service revenue.  The authority to issue bonds under this
43.34 	section is in addition to any bonding authority authorized by
43.35 	this chapter, or other law.  The amount of bonding authority
43.36 	authorized under this section must be disregarded in calculating
44.1 	the bonding or net debt limits of this chapter, or any other law
44.2 	other than section 475.53, subdivision 4.
44.3 	(b) At least 60 days before a district issues bonds the
44.4 	earliest of solicitation of bids, the issuance of bonds, or the
44.5 	final certification of levies under this subdivision 5, it the
44.6 	district must publish notice of the intended projects, the
44.7 	amount of the bond issue, and the total amount of district
44.8 	indebtedness, and the commissioner's review and comment, if
44.9 	applicable.

44.10 	Sec. 2. Minnesota Statutes 2004, section 123B.59,
44.11 	subdivision 3a, is amended to read:
44.12 		Subd. 3a.Levy authorization.  (a) A school district may
44.13 	levy under this section to finance the portion of facilities
44.14 	plans approved by its board and the commissioner that are not
44.15 	financed through bond issues according to subdivision 3.
44.16 	(b) At least 60 days before a final district certification
44.17 	of levies under this subdivision 5, it the district must
44.18 	publish notice of the intended projects, including the total
44.19 	estimated project cost, and the commissioner's review and
44.20 	comment, if applicable.

44.21 	Sec. 3. Minnesota Statutes 2004, section 123B.63,
44.22 	subdivision 2, is amended to read:
44.23 		Subd. 2.Uses of the account.  Money in the capital
44.24 	project referendum account must be used only for the purposes
44.25 	specified in section 126C.10, subdivision 14, for operating
44.26 	capital revenue, including the costs of acquisition and
44.27 	betterment for a project that has been reviewed under section
44.28 	123B.71 and has been approved according to subdivision 3.

44.29 	Sec. 4. Minnesota Statutes 2004, section 123B.71,
44.30 	subdivision 8, is amended to read:
44.31 		Subd. 8.Review and comment.  A school district, a
44.32 	special education cooperative, or a cooperative unit of
44.33 	government, as defined in section 123A.24, subdivision 2, must
44.34 	not initiate an installment contract for purchase or a lease
44.35 	agreement, hold a referendum for bonds, nor solicit bids for new
44.36 	construction, expansion, or remodeling of an educational
45.1 	facility that requires an expenditure in excess of $500,000 per
45.2 	school site prior to review and comment by the commissioner.
45.3 	The commissioner may exempt a facility maintenance project
45.4 	funded with general education aid and levy, alternative
45.5 	facilities bonding and levy program,or health and safety
45.6 	revenue from this provision after reviewing a written request
45.7 	from a school district describing the scope of work.  A school
45.8 	board shall not separate portions of a single project into
45.9 	components to avoid the requirements of this subdivision.

45.10 	Sec. 5. Minnesota Statutes 2004, section 123B.71,
45.11 	subdivision 12, is amended to read:
45.12 		Subd. 12.Publication. (a) At least 20 days but not more
45.13 	than 60 days before a referendum for bonds or solicitation of
45.14 	bids for a project that has received a positive or unfavorable
45.15 	review and comment under section 123B.70, the school board shall
45.16 	publish the commissioner's review and comment of that project in
45.17 	the legal newspaper of the district.  Supplementary information
45.18 	shall be available to the public.
45.19 	(b) The publication requirement in paragraph (a) does not
45.20 	apply to alternative facilities projects approved under section
45.21 	123B.59.  Publication for alternative facilities projects shall
45.22 	be as specified in section 123B.59, subdivisions 3 and 3a.

45.23 	ARTICLE 5
45.24 	EARLY CHILDHOOD FAMILY SUPPORT

45.25 	Section 1. Minnesota Statutes 2004, section 124D.135,
45.26 	subdivision 5, is amended to read:
45.27 		Subd. 5.Use of revenue restricted.  Early childhood
45.28 	family education revenue may be used only for early childhood
45.29 	family education programs.  Not more than five percent of early
45.30 	childhood family education revenue, as defined in subdivision 7,
45.31 	may be used to administer early childhood family education
45.32 	programs.

45.33 	Sec. 2. Minnesota Statutes 2004, section 124D.16,
45.34 	subdivision 3, is amended to read:
45.35 		Subd. 3.Use of aid.  School readiness aid shall be used
45.36 	only to provide a school readiness program and may be used to
46.1 	provide transportation.  Not more than five percent of the
46.2 	aid school readiness revenue, as defined in subdivision 7,may
46.3 	be used for the cost of administering the program.  Aid must be
46.4 	used to supplement and not supplant local, state, and federal
46.5 	funding.  Aid may not be used for instruction and services
46.6 	required under sections 125A.03 to 125A.24 and 125A.65. Aid may
46.7 	not be used to purchase land or construct buildings, but may be
46.8 	used to lease or renovate existing buildings.

46.9 	Sec. 3. Minnesota Statutes 2004, section 126C.15,
46.10 	subdivision 1, is amended to read:
46.11 		Subdivision 1.Use of the revenue. Except for revenue
46.12 	allocated for prekindergarten programs under subdivision 2,
46.13 	paragraph (c),the basic skills revenue under section 126C.10,
46.14 	subdivision 4, must be reserved and used to meet the educational
46.15 	needs of pupils who enroll under-prepared to learn and whose
46.16 	progress toward meeting state or local content or performance
46.17 	standards is below the level that is appropriate for learners of
46.18 	their age.  Any of the following may be provided to meet these
46.19 	learners' needs:
46.20 	(1) direct instructional services under the assurance of
46.21 	mastery program according to section 124D.66;
46.22 	(2) remedial instruction in reading, language arts,
46.23 	mathematics, other content areas, or study skills to improve the
46.24 	achievement level of these learners;
46.25 	(3) additional teachers and teacher aides to provide more
46.26 	individualized instruction to these learners through individual
46.27 	tutoring, lower instructor-to-learner ratios, or team teaching;
46.28 	(4) a longer school day or week during the regular school
46.29 	year or through a summer program that may be offered directly by
46.30 	the site or under a performance-based contract with a
46.31 	community-based organization;
46.32 	(5) comprehensive and ongoing staff development consistent
46.33 	with district and site plans according to section 122A.60, for
46.34 	teachers, teacher aides, principals, and other personnel to
46.35 	improve their ability to identify the needs of these learners
46.36 	and provide appropriate remediation, intervention,
47.1 	accommodations, or modifications;
47.2 	(6) instructional materials and technology appropriate for
47.3 	meeting the individual needs of these learners;
47.4 	(7) programs to reduce truancy, encourage completion of
47.5 	high school, enhance self-concept, provide health services,
47.6 	provide nutrition services, provide a safe and secure learning
47.7 	environment, provide coordination for pupils receiving services
47.8 	from other governmental agencies, provide psychological services
47.9 	to determine the level of social, emotional, cognitive, and
47.10 	intellectual development, and provide counseling services,
47.11 	guidance services, and social work services;
47.12 	(8) bilingual programs, bicultural programs, and programs
47.13 	for learners of limited English proficiency;
47.14 	(9) all day kindergarten;
47.15 	(10) extended school day and extended school year programs;
47.16 	and
47.17 	(11) substantial parent involvement in developing and
47.18 	implementing remedial education or intervention plans for a
47.19 	learner, including learning contracts between the school, the
47.20 	learner, and the parent that establish achievement goals and
47.21 	responsibilities of the learner and the learner's parent or
47.22 	guardian.

47.23 	Sec. 4. Minnesota Statutes 2004, section 126C.15,
47.24 	subdivision 2, is amended to read:
47.25 		Subd. 2.Building allocation.  (a) A district must
47.26 	allocate its compensatory revenue to each school building in the
47.27 	district where the children who have generated the revenue are
47.28 	served.
47.29 	(b) Notwithstanding paragraph (a), a district may allocate
47.30 	up to five percent of the amount of compensatory revenue that
47.31 	the district received during the previous fiscal year receives 
47.32 	to school sites according to a plan adopted by the school board.
47.33 	(c) Notwithstanding paragraph (a), a district may allocate
47.34 	up to ten percent of the amount of compensatory revenue the
47.35 	district receives to support prekindergarten programs under
47.36 	subdivision 2a.
48.1 	(d) For the purposes of this section and section 126C.05,
48.2 	subdivision 3, "building" means education site as defined in
48.3 	section 123B.04, subdivision 1.
48.4 	(d) (e) If the pupil is served at a site other than one
48.5 	owned and operated by the district, the revenue shall be paid to
48.6 	the district and used for services for pupils who generate the
48.7 	revenue.

48.8 	Sec. 5. Minnesota Statutes 2004, section 126C.15, is
48.9 	amended by adding a subdivision to read:
48.10 		Subd. 2a.Prekindergarten programs. Revenue allocated
48.11 	under subdivision 2, paragraph (c), must be reserved and used
48.12 	for programs and activities that prepare for kindergarten
48.13 	children ages 3-1/2 to kindergarten entrance from families
48.14 	eligible for the free or reduced price school lunch program.
48.15 	Programs may serve resident and nonresident children.  Districts
48.16 	may contract with private preschools and other providers of
48.17 	prekindergarten programs.

48.18 	ARTICLE 6
48.19 	PREVENTION

48.20 	Section 1. Minnesota Statutes 2004, section 119A.46,
48.21 	subdivision 1, is amended to read:
48.22 		Subdivision 1.Definitions.  (a) The definitions in
48.23 	section 144.9501 and in this subdivision apply to this section.
48.24 	(b) "Eligible organization" means a lead contractor, city,
48.25 	board of health, community health department, community action
48.26 	agency as defined in section 119A.374, or community development
48.27 	corporation.
48.28 	(c) "Commissioner" means the commissioner of education 
48.29 	health, or the commissioner of the Minnesota Housing Finance
48.30 	Agency as authorized by section 462A.05, subdivision 15c.

48.31 	Sec. 2. Minnesota Statutes 2004, section 119A.46,
48.32 	subdivision 2, is amended to read:
48.33 		Subd. 2.Grants; administration.  Within the limits of
48.34 	the available appropriation, the commissioner must develop a
48.35 	swab team services program which may make demonstration and
48.36 	training grants to eligible organizations to train workers to
49.1 	provide swab team services and swab team services for
49.2 	residential property.  Grants may be awarded to nonprofit
49.3 	organizations to provide technical assistance and training to
49.4 	ensure quality and consistency within the statewide program.
49.5 	Grants must be awarded to help ensure full-time employment to
49.6 	workers providing swab team services and must be awarded for a
49.7 	two-year period.
49.8 	Grants awarded under this section must be made in
49.9 	consultation with the commissioners of the Department of Health
49.10 	and commissioner of the Housing Finance Agency,and
49.11 	representatives of neighborhood groups from areas at high risk
49.12 	for toxic lead exposure, a labor organization, the lead
49.13 	coalition, community action agencies, and the legal aid
49.14 	society.  The consulting team must review grant applications and
49.15 	recommend awards to eligible organizations that meet
49.16 	requirements for receiving a grant under this section.

49.17 	Sec. 3. Minnesota Statutes 2004, section 119A.46,
49.18 	subdivision 3, is amended to read:
49.19 		Subd. 3.Applicants.  (a) Interested eligible
49.20 	organizations may apply to the commissioner for grants under
49.21 	this section.  Two or more eligible organizations may jointly
49.22 	apply for a grant.  Priority shall be given to community action
49.23 	agencies in greater Minnesota and to either community action
49.24 	agencies or neighborhood based nonprofit organizations in cities
49.25 	of the first class.  Of the total annual appropriation, 12.5
49.26 	percent may be used for administrative purposes.  The
49.27 	commissioner may deviate from this percentage if a grantee can
49.28 	justify the need for a larger administrative allowance.  Of this
49.29 	amount, up to five percent may be used by the commissioner for
49.30 	state administrative purposes.  Applications must provide
49.31 	information requested by the commissioner, including at least
49.32 	the information required to assess the factors listed in
49.33 	paragraph (d).
49.34 	(b) The commissioner must coordinate with the commissioner
49.35 	of health who must consult with boards of health to provide swab
49.36 	team services for purposes of secondary prevention.  The
50.1 	priority for swab teams created by grants to eligible
50.2 	organizations under this section must be work assigned by the
50.3 	commissioner of health, or by a board of health if so designated
50.4 	by the commissioner of health, to provide secondary prevention
50.5 	swab team services to fulfill the requirements of section
50.6 	144.9504, subdivision 6, in response to a lead order.  Swab
50.7 	teams assigned work under this section by the commissioner, that
50.8 	are not engaged daily in fulfilling the requirements of section
50.9 	144.9504, subdivision 6, must deliver swab team services in
50.10 	response to elevated blood lead levels as defined in section
50.11 	144.9501, subdivision 9, where lead orders were not issued, and
50.12 	for purposes of primary prevention in census tracts known to be
50.13 	in areas at high risk for toxic lead exposure as described in
50.14 	section 144.9503, subdivision 2.
50.15 	(c) Any additional money must be used for grants to
50.16 	establish swab teams for primary prevention under section
50.17 	144.9503, in census tracts in areas at high risk for toxic lead
50.18 	exposure as determined under section 144.9503, subdivision 2.
50.19 	(d) In evaluating grant applications, the commissioner must
50.20 	consider the following criteria:
50.21 	(1) the use of lead contractors and lead workers for
50.22 	residential swab team services;
50.23 	(2) the participation of neighborhood groups and
50.24 	individuals, as swab team workers, in areas at high risk for
50.25 	toxic lead exposure;
50.26 	(3) plans for the provision of swab team services for
50.27 	primary and secondary prevention as required under subdivision
50.28 	4;
50.29 	(4) plans for supervision, training, career development,
50.30 	and postprogram placement of swab team members;
50.31 	(5) plans for resident and property owner education on lead
50.32 	safety;
50.33 	(6) plans for distributing cleaning supplies to area
50.34 	residents and educating residents and property owners on
50.35 	cleaning techniques;
50.36 	(7) sources of other funding and cost estimates for
51.1 	training, lead inspections, swab team services, equipment,
51.2 	monitoring, testing, and administration;
51.3 	(8) measures of program effectiveness;
51.4 	(9) coordination of program activities with other federal,
51.5 	state, and local public health, job training, apprenticeship,
51.6 	and housing renovation programs including programs under
51.7 	sections 116L.86 to 116L.881; and
51.8 	(10) prior experience in providing swab team services.

51.9 	Sec. 4. Minnesota Statutes 2004, section 119A.46,
51.10 	subdivision 8, is amended to read:
51.11 		Subd. 8.Testing and evaluation.  (a) Testing of the
51.12 	environment is not necessary by swab teams whose work is
51.13 	assigned by the commissioner of health or a designated board of
51.14 	health under section 144.9504.  The commissioner of health or
51.15 	designated board of health must share the analytical testing
51.16 	data collected on each residence for purposes of secondary
51.17 	prevention under section 144.9504 with the swab team workers in
51.18 	order to provide constructive feedback on their work and to the
51.19 	commissioner for the purposes set forth in paragraph (c).
51.20 	(b) For purposes of primary prevention evaluation, the
51.21 	following samples must be collected:  pretesting and posttesting
51.22 	of one noncarpeted floor dust lead sample and a notation of the
51.23 	extent and location of bare soil and of deteriorated lead-based
51.24 	paint.  The analytical testing data collected on each residence
51.25 	for purposes of primary prevention under section 144.9503 must
51.26 	be shared with the swab team workers in order to provide
51.27 	constructive feedback on their work and to the commissioner for
51.28 	the purposes set forth in paragraph (c).
51.29 	(c) The commissioner of health must establish a program in
51.30 	cooperation with the commissioner to collect appropriate data as
51.31 	required under paragraphs (a) and (b), in order to conduct an
51.32 	ongoing evaluation of swab team services for primary and
51.33 	secondary prevention.  Within the limits of available
51.34 	appropriations, the commissioner of health must conduct or
51.35 	contract with the commissioner,on up to 1,000 residences which
51.36 	have received primary or secondary prevention swab team
52.1 	services, a postremediation evaluation, on at least a quarterly
52.2 	basis for a period of at least two years for each residence.
52.3 	The evaluation must note the condition of the paint within the
52.4 	residence, the extent of bare soil on the grounds, and collect
52.5 	and analyze one noncarpeted floor dust lead sample.  The data
52.6 	collected must be evaluated to determine the efficacy of
52.7 	providing swab team services as a method of reducing lead
52.8 	exposure in young children.  In evaluating this data, the
52.9 	commissioner of health must consider city size, community
52.10 	location, historic traffic flow, soil lead level of the property
52.11 	by area or census tract, distance to industrial point sources
52.12 	that emit lead, season of the year, age of the housing, age and
52.13 	number of children living at the residence, the presence of pets
52.14 	that move in and out of the residence, and other relevant
52.15 	factors as the commissioner of health may determine.

52.16 	Sec. 5. REVISOR'S INSTRUCTION.
 52.17 	In the next edition of Minnesota Statutes, the revisor of
52.18 	statutes shall renumber Minnesota Statutes, section 119A.46, as
52.19 	section 144.9512.