1.1                          A bill for an act 
  1.2             relating to education; providing for prekindergarten 
  1.3             through grade 12 education, including general 
  1.4             education, education excellence, special programs, 
  1.5             libraries, and state agencies; providing for 
  1.6             rulemaking; amending Minnesota Statutes 2002, sections 
  1.7             13.321, subdivision 1, by adding a subdivision; 13.46, 
  1.8             subdivision 1; 122A.20, subdivision 2; 123B.143, 
  1.9             subdivision 1; 123B.49, subdivision 4; 123B.53, 
  1.10            subdivision 6; 123B.76, by adding a subdivision; 
  1.11            123B.82; 124D.59, as amended; 124D.61; 125A.023, 
  1.12            subdivision 3; 125A.03; 127A.42, subdivision 6; 
  1.13            127A.47, subdivision 3; 134.31, by adding a 
  1.14            subdivision; 134.45, subdivision 5; Minnesota Statutes 
  1.15            2003 Supplement, sections 120B.021, subdivision 3; 
  1.16            120B.024; 120B.36; 123B.77, subdivision 4; 124D.095, 
  1.17            subdivision 4; 124D.11, subdivision 1; 124D.454, 
  1.18            subdivision 2; 125A.023, subdivision 4; 127A.05, 
  1.19            subdivision 4; 127A.42, subdivision 2; 275.065, 
  1.20            subdivision 1; 475.61, subdivision 4; Laws 2003, First 
  1.21            Special Session chapter 9, article 3, section 19; 
  1.22            proposing coding for new law in Minnesota Statutes, 
  1.23            chapters 120B; 127A; repealing Minnesota Statutes 
  1.24            2002, section 126C.23. 
  1.25  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.26                             ARTICLE 1 
  1.27                         GENERAL EDUCATION 
  1.28     Section 1.  Minnesota Statutes 2002, section 123B.143, 
  1.29  subdivision 1, is amended to read: 
  1.30     Subdivision 1.  [CONTRACT; DUTIES.] All districts 
  1.31  maintaining a classified secondary school must employ a 
  1.32  superintendent who shall be an ex officio nonvoting member of 
  1.33  the school board.  The authority for selection and employment of 
  1.34  a superintendent must be vested in the board in all cases.  An 
  1.35  individual employed by a board as a superintendent shall have an 
  2.1   initial employment contract for a period of time no longer than 
  2.2   three years from the date of employment.  Any subsequent 
  2.3   employment contract must not exceed a period of three years.  A 
  2.4   board, at its discretion, may or may not renew an employment 
  2.5   contract.  A board must not, by action or inaction, extend the 
  2.6   duration of an existing employment contract.  Beginning 365 days 
  2.7   prior to the expiration date of an existing employment contract, 
  2.8   a board may negotiate and enter into a subsequent employment 
  2.9   contract to take effect upon the expiration of the existing 
  2.10  contract.  A subsequent contract must be contingent upon the 
  2.11  employee completing the terms of an existing contract.  If a 
  2.12  contract between a board and a superintendent is terminated 
  2.13  prior to the date specified in the contract, the board may not 
  2.14  enter into another superintendent contract with that same 
  2.15  individual that has a term that extends beyond the date 
  2.16  specified in the terminated contract.  A board may terminate a 
  2.17  superintendent during the term of an employment contract for any 
  2.18  of the grounds specified in section 122A.40, subdivision 9 or 13.
  2.19  A superintendent shall not rely upon an employment contract with 
  2.20  a board to assert any other continuing contract rights in the 
  2.21  position of superintendent under section 122A.40.  
  2.22  Notwithstanding the provisions of sections 122A.40, subdivision 
  2.23  10 or 11, 123A.32, 123A.75, or any other law to the contrary, no 
  2.24  individual shall have a right to employment as a superintendent 
  2.25  based on order of employment in any district.  If two or more 
  2.26  districts enter into an agreement for the purchase or sharing of 
  2.27  the services of a superintendent, the contracting districts have 
  2.28  the absolute right to select one of the individuals employed to 
  2.29  serve as superintendent in one of the contracting districts and 
  2.30  no individual has a right to employment as the superintendent to 
  2.31  provide all or part of the services based on order of employment 
  2.32  in a contracting district. The superintendent of a district 
  2.33  shall perform the following:  
  2.34     (1) visit and supervise the schools in the district, report 
  2.35  and make recommendations about their condition when advisable or 
  2.36  on request by the board; 
  3.1      (2) recommend to the board employment and dismissal of 
  3.2   teachers; 
  3.3      (3) superintend school grading practices and examinations 
  3.4   for promotions; 
  3.5      (4) make reports required by the commissioner; and 
  3.6      (5) by January 10, submit an annual report to the 
  3.7   commissioner in a manner prescribed by the commissioner, in 
  3.8   consultation with school districts, identifying the expenditures 
  3.9   that the district requires to ensure an 80 percent student 
  3.10  passage rate on the basic standards test taken in the eighth 
  3.11  grade, identifying the highest student passage rate the district 
  3.12  expects it will be able to attain on the basic standards test by 
  3.13  grade 12, the amount of expenditures that the district requires 
  3.14  to attain the targeted student passage rate, and how much the 
  3.15  district is cross-subsidizing programs with special education, 
  3.16  basic skills, and general education revenue; and 
  3.17     (6) perform other duties prescribed by the board. 
  3.18     Sec. 2.  Minnesota Statutes 2002, section 123B.49, 
  3.19  subdivision 4, is amended to read: 
  3.20     Subd. 4.  [BOARD CONTROL OF EXTRACURRICULAR ACTIVITIES.] 
  3.21  (a) The board may take charge of and control all extracurricular 
  3.22  activities of the teachers and children of the public schools in 
  3.23  the district.  Extracurricular activities means all direct and 
  3.24  personal services for pupils for their enjoyment that are 
  3.25  managed and operated under the guidance of an adult or staff 
  3.26  member.  The board shall allow all resident pupils receiving 
  3.27  instruction in a home school as defined in section 123B.36, 
  3.28  subdivision 1, paragraph (a), to be eligible to fully 
  3.29  participate in extracurricular activities on the same basis as 
  3.30  public school students. 
  3.31     (b) Extracurricular activities have all of the following 
  3.32  characteristics: 
  3.33     (1) they are not offered for school credit nor required for 
  3.34  graduation; 
  3.35     (2) they are generally conducted outside school hours, or 
  3.36  if partly during school hours, at times agreed by the 
  4.1   participants, and approved by school authorities; 
  4.2      (3) the content of the activities is determined primarily 
  4.3   by the pupil participants under the guidance of a staff member 
  4.4   or other adult. 
  4.5      (c) If the board does not take charge of and control 
  4.6   extracurricular activities, these activities shall be 
  4.7   self-sustaining with all expenses, except direct salary costs 
  4.8   and indirect costs of the use of school facilities, met by dues, 
  4.9   admissions, or other student fund-raising events.  The general 
  4.10  fund must reflect only those salaries directly related to and 
  4.11  readily identified with the activity and paid by public funds.  
  4.12  Other revenues and expenditures for extra curricular activities 
  4.13  must be recorded according to the "Manual of Instruction for 
  4.14  Uniform Student Activities Accounting for Minnesota School 
  4.15  Districts and Area Vocational-Technical Colleges Manual for 
  4.16  Activity Fund Accounting."  Extracurricular activities not under 
  4.17  board control must have an annual financial audit and must also 
  4.18  be audited annually for compliance with this section. 
  4.19     (d) If the board takes charge of and controls 
  4.20  extracurricular activities, any or all costs of these activities 
  4.21  may be provided from school revenues and all revenues and 
  4.22  expenditures for these activities shall be recorded in the same 
  4.23  manner as other revenues and expenditures of the district.  
  4.24     (e) If the board takes charge of and controls 
  4.25  extracurricular activities, the teachers or pupils in the 
  4.26  district must not participate in such activity, nor shall the 
  4.27  school name or any allied name be used in connection therewith, 
  4.28  except by consent and direction of the board. 
  4.29     Sec. 3.  Minnesota Statutes 2002, section 123B.53, 
  4.30  subdivision 6, is amended to read: 
  4.31     Subd. 6.  [DEBT SERVICE EQUALIZATION AID.] (a) A district's 
  4.32  debt service equalization aid is the sum of the district's first 
  4.33  tier debt service equalization aid and the district's second 
  4.34  tier debt service equalization aid. 
  4.35     (b) A district's first tier debt service equalization aid 
  4.36  equals the difference between the district's first tier debt 
  5.1   service equalization revenue and the district's first tier 
  5.2   equalized debt service levy. 
  5.3      (c) A district's second tier debt service equalization aid 
  5.4   equals the difference between the district's second tier debt 
  5.5   service equalization revenue and the district's second tier 
  5.6   equalized debt service levy. 
  5.7      Sec. 4.  Minnesota Statutes 2002, section 123B.76, is 
  5.8   amended by adding a subdivision to read: 
  5.9      Subd. 3.  [EXPENDITURES BY BUILDING.] (a) For the purposes 
  5.10  of this section, "building" means education site as defined in 
  5.11  section 123B.04, subdivision 1.  
  5.12     (b) Each district shall maintain separate accounts to 
  5.13  identify general fund expenditures, excluding capital 
  5.14  expenditures and pupil transportation, for each building.  All 
  5.15  expenditures for regular instruction, secondary vocational 
  5.16  instruction, and school administration must be reported to the 
  5.17  department separately for each building.  All expenditures for 
  5.18  special education instruction, instructional support services, 
  5.19  and pupil support services provided within a specific building 
  5.20  must be reported to the department separately for each 
  5.21  building.  Salary expenditures reported by building must reflect 
  5.22  actual salaries for staff at the building and must not be based 
  5.23  on districtwide averages.  All other general fund expenditures 
  5.24  may be reported on a districtwide basis. 
  5.25     (c) The department must annually report information showing 
  5.26  school district general fund expenditures per pupil by program 
  5.27  category for each building and estimated school district general 
  5.28  fund revenue generated by pupils attending each building on its 
  5.29  Web site.  For purposes of this report: 
  5.30     (1) expenditures not required to be reported by building 
  5.31  shall be allocated among buildings on a uniform per pupil basis; 
  5.32     (2) basic skills revenue shall be allocated according to 
  5.33  section 126C.10, subdivision 4; 
  5.34     (3) other general education revenue shall be allocated on a 
  5.35  uniform per pupil unit basis; 
  5.36     (4) first grade preparedness aid shall be allocated 
  6.1   according to section 124D.081; 
  6.2      (5) state and federal special education aid and Title I aid 
  6.3   shall be allocated in proportion to district expenditures for 
  6.4   these programs by building; and 
  6.5      (6) other general fund revenues shall be allocated on a 
  6.6   uniform per pupil basis, except that the department may allocate 
  6.7   other revenues attributable to specific buildings directly to 
  6.8   those buildings. 
  6.9      <b>[EFFECTIVE DATE.]</b> This section is effective the day 
  6.10  following final enactment and applies to reports for fiscal year 
  6.11  2004 and later. 
  6.12     Sec. 5.  Minnesota Statutes 2003 Supplement, section 
  6.13  123B.77, subdivision 4, is amended to read: 
  6.14     Subd. 4.  [BUDGET APPROVAL.] Prior to July 1 of each year, 
  6.15  the board of each district must approve and adopt its revenue 
  6.16  and expenditure budgets for the next school year.  The budget 
  6.17  document so adopted must be considered an 
  6.18  expenditure-authorizing or appropriations document.  No funds 
  6.19  shall be expended by any board or district for any purpose in 
  6.20  any school year prior to the adoption of the budget document 
  6.21  which authorizes that expenditure, or prior to an amendment to 
  6.22  the budget document by the board to authorize the expenditure.  
  6.23  Expenditures of funds in violation of this subdivision shall be 
  6.24  considered unlawful expenditures.  Prior to the appropriation of 
  6.25  revenue for the next school year in the initial budget, the 
  6.26  board shall calculate the general education revenue, basic 
  6.27  skills revenue, and referendum revenue for that year that it 
  6.28  estimates will be generated by the pupils in attendance at each 
  6.29  site, and shall inform the principal of each site of that 
  6.30  estimate and report this information to the amount of general 
  6.31  education and referendum revenue that the Department of 
  6.32  Education estimates will be generated by the pupils in 
  6.33  attendance at each site.  For purposes of this subdivision, a 
  6.34  district may adjust the department's estimates for school 
  6.35  building openings, school building closings, changes in 
  6.36  attendance area boundaries, or other changes in programs or 
  7.1   student demographics not reflected in the department's 
  7.2   calculations.  A district must report to the department any 
  7.3   adjustments it makes according to this subdivision in the 
  7.4   department's estimates of compensatory revenue generated by the 
  7.5   pupils in attendance at each site, and the department must use 
  7.6   the adjusted compensatory revenue estimates in preparing the 
  7.7   report required under section 123B.76, subdivision 3, paragraph 
  7.8   (c). 
  7.9      <b>[EFFECTIVE DATE.]</b> This section is effective the day 
  7.10  following final enactment and applies to reports for fiscal year 
  7.11  2005 and later. 
  7.12     Sec. 6.  Minnesota Statutes 2002, section 123B.82, is 
  7.13  amended to read: 
  7.14     123B.82 [REORGANIZATION OPERATING DEBT.] 
  7.15     The "reorganization operating debt" of a school district 
  7.16  means the net negative undesignated fund balance in all school 
  7.17  district funds, other than capital expenditure, building 
  7.18  construction, debt redemption, and trust and agency, calculated 
  7.19  in accordance with the uniform financial accounting and 
  7.20  reporting standards for Minnesota school districts as of: 
  7.21     (1) June 30 of the fiscal year before the first year that a 
  7.22  district receives revenue according to section 123A.39, 
  7.23  subdivision 3; or 
  7.24     (2) June 30 of the fiscal year before the effective date of 
  7.25  reorganization according to section 123A.46 or 123A.48. 
  7.26     Sec. 7.  Minnesota Statutes 2003 Supplement, section 
  7.27  124D.11, subdivision 1, is amended to read: 
  7.28     Subdivision 1.  [GENERAL EDUCATION REVENUE.] (a) General 
  7.29  education revenue must be paid to a charter school as though it 
  7.30  were a district.  The general education revenue for each 
  7.31  adjusted marginal cost pupil unit is the state average general 
  7.32  education revenue per pupil unit, plus the referendum 
  7.33  equalization aid allowance in the pupil's district of residence, 
  7.34  minus an amount equal to the product of the formula allowance 
  7.35  according to section 126C.10, subdivision 2, times .0485, 
  7.36  calculated without basic skills revenue, extended time revenue, 
  8.1   transition revenue, and transportation sparsity revenue, plus 
  8.2   basic skills revenue, extended time revenue, and transition 
  8.3   revenue as though the school were a school district. 
  8.4      (b) Notwithstanding paragraph (a), for charter schools in 
  8.5   the first year of operation, general education revenue shall be 
  8.6   computed using the number of adjusted pupil units in the current 
  8.7   fiscal year.  
  8.8      <b>[EFFECTIVE DATE.]</b> This section is effective the day 
  8.9   following final enactment and applies to revenue for fiscal year 
  8.10  2004 and later. 
  8.11     Sec. 8.  Minnesota Statutes 2003 Supplement, section 
  8.12  124D.454, subdivision 2, is amended to read: 
  8.13     Subd. 2.  [DEFINITIONS.] For the purposes of this section, 
  8.14  the definitions in this subdivision apply. 
  8.15     (a) "Base year" means the second fiscal year preceding the 
  8.16  fiscal year for which aid will be paid. 
  8.17     (b) "Basic revenue" has the meaning given it in section 
  8.18  126C.10, subdivision 2.  For the purposes of computing basic 
  8.19  revenue pursuant to this section, each child with a disability 
  8.20  shall be counted as prescribed in section 126C.05, subdivision 1.
  8.21     (c) "Average daily membership" has the meaning given it in 
  8.22  section 126C.05. 
  8.23     (d) "Program growth factor" means 1.00 for fiscal year 1998 
  8.24  and later. 
  8.25     (e) "Aid percentage factor" means 100 percent for fiscal 
  8.26  year 2000 and later. 
  8.27     (f) "Essential personnel" means a licensed teacher, 
  8.28  licensed support services staff person, paraprofessional 
  8.29  providing direct services to students, or licensed personnel 
  8.30  under subdivision 12, paragraph (c).  This definition is not 
  8.31  intended to change or modify the definition of essential 
  8.32  employee in chapter 179A. 
  8.33     Sec. 9.  Minnesota Statutes 2003 Supplement, section 
  8.34  127A.42, subdivision 2, is amended to read: 
  8.35     Subd. 2.  [VIOLATIONS OF LAW.] (a) The commissioner may 
  8.36  reduce or withhold the district's state aid for any school year 
  9.1   whenever the board of the district authorizes or permits 
  9.2   violations of law within the district by: 
  9.3      (1) employing a teacher who does not hold a valid teaching 
  9.4   license or permit in a public school; 
  9.5      (2) noncompliance with a mandatory rule of general 
  9.6   application promulgated by the commissioner in accordance with 
  9.7   statute, unless special circumstances make enforcement 
  9.8   inequitable, impose an extraordinary hardship on the district, 
  9.9   or the rule is contrary to the district's best interests; 
  9.10     (3) the district's continued performance of a contract made 
  9.11  for the rental of rooms or buildings for school purposes or for 
  9.12  the rental of any facility owned or operated by or under the 
  9.13  direction of any private organization, if the contract has been 
  9.14  disapproved, the time for review of the determination of 
  9.15  disapproval has expired, and no proceeding for review is 
  9.16  pending; 
  9.17     (4) any practice which is a violation of sections 1 and 2 
  9.18  of article 13 of the Constitution of the state of Minnesota; 
  9.19     (5) failure to reasonably provide for a resident pupil's 
  9.20  school attendance under Minnesota Statutes; 
  9.21     (6) noncompliance with state laws prohibiting 
  9.22  discrimination because of race, color, creed, religion, national 
  9.23  origin, sex, age, marital status, status with regard to public 
  9.24  assistance or disability, as defined in sections 363A.08 to 
  9.25  363A.19 and 363A.28, subdivision 10; or 
  9.26     (7) using funds contrary to the statutory purpose of the 
  9.27  funds. 
  9.28     (b) The commissioner may withhold the district's state aid 
  9.29  for any school year whenever the district fails to submit 
  9.30  audited financial data or an audited financial statement 
  9.31  according to section 123B.77, subdivision 3. 
  9.32     (c) The reduction or withholding must be made in the amount 
  9.33  and upon the procedure provided in this section.  
  9.34     <b>[EFFECTIVE DATE.]</b> This section is effective the day 
  9.35  following final enactment and applies to audited financial data 
  9.36  and audited financial statements for fiscal year 2004 and later. 
 10.1      Sec. 10.  Minnesota Statutes 2002, section 127A.42, 
 10.2   subdivision 6, is amended to read: 
 10.3      Subd. 6.  [VIOLATION; AID REDUCTION OR WITHHOLDING.] The 
 10.4   commissioner shall not reduce or withhold state aids payable to 
 10.5   the district if the violation specified is corrected within the 
 10.6   time permitted, or if the commissioner on being notified of the 
 10.7   district board's decision to dispute decides the violation does 
 10.8   not exist, or if the commissioner decides after hearing no 
 10.9   violation specified in the commissioner's notice existed at the 
 10.10  time of the notice, or that the violations were corrected within 
 10.11  the time permitted.  Otherwise state aids payable to the 
 10.12  district for the year in which the violation occurred may be 
 10.13  reduced or withheld as follows:  The total amount of state aids 
 10.14  to which the district may be entitled shall be reduced or 
 10.15  withheld in the proportion that the period during which a 
 10.16  specified violation continued, computed from the last day of the 
 10.17  time permitted for correction, bears to the total number of days 
 10.18  school is held in the district during the year in which a 
 10.19  violation exists, multiplied by up to 60 percent of the basic 
 10.20  revenue, as defined in section 126C.10, subdivision 2, of the 
 10.21  district for that year. 
 10.22     Sec. 11.  Minnesota Statutes 2002, section 127A.47, 
 10.23  subdivision 3, is amended to read: 
 10.24     Subd. 3.  [REVENUE FOR CHILDREN OF DIVORCED OR SEPARATED 
 10.25  PARENTS.] (a) In those instances when the divorced or separated 
 10.26  parents share joint physical custody of the child and the 
 10.27  divorced or separated parents reside in different school 
 10.28  districts, for all school purposes, unless otherwise 
 10.29  specifically provided by law, the child must be considered a 
 10.30  resident of the school district, as indicated by the child's 
 10.31  parents.  
 10.32     (b) When the child of divorced or separated parents under 
 10.33  paragraph (a) resides with each parent on alternate weeks, the 
 10.34  parents shall be responsible for the transportation of the child 
 10.35  to the border of the resident school district during those weeks 
 10.36  when the child resides in the nonresident school district. 
 11.1      Sec. 12.  [127A.52] [CROSS-SUBSIDY REPORTS.] 
 11.2      By January 30 each year, the commissioner must estimate how 
 11.3   much each district cross-subsidized the cost of special 
 11.4   education and basic skills programs with general education 
 11.5   revenue during the fiscal year ending on June 30 of the previous 
 11.6   year.  The commissioner must make the cross-subsidy estimates 
 11.7   available to all districts and the public by posting the 
 11.8   cross-subsidy reports on the department's Web site. 
 11.9      Sec. 13.  Minnesota Statutes 2003 Supplement, section 
 11.10  275.065, subdivision 1, is amended to read: 
 11.11     Subdivision 1.  [PROPOSED LEVY.] (a) Notwithstanding any 
 11.12  law or charter to the contrary, on or before September 15, each 
 11.13  taxing authority, other than a school district, shall adopt a 
 11.14  proposed budget and shall certify to the county auditor the 
 11.15  proposed or, in the case of a town, the final property tax levy 
 11.16  for taxes payable in the following year. 
 11.17     (b) On or before September 30, each school district shall 
 11.18  certify to the county auditor the proposed property tax levy for 
 11.19  taxes payable in the following year.  The school district shall 
 11.20  certify the proposed levy as: 
 11.21     (1) the state determined school levy amount as prescribed 
 11.22  under section 126C.13, subdivision 2; a specific dollar amount 
 11.23  by school district fund, broken down between voter-approved and 
 11.24  non-voter-approved levies and between referendum market value 
 11.25  and tax capacity levies; or 
 11.26     (2) voter approved referendum and debt levies; and 
 11.27     (3) the sum of the remaining school levies, or the maximum 
 11.28  levy limitation certified by the commissioner of education 
 11.29  according to section 126C.48, subdivision 1, less the amounts 
 11.30  levied under clauses (1) and (2). 
 11.31     (c) If the board of estimate and taxation or any similar 
 11.32  board that establishes maximum tax levies for taxing 
 11.33  jurisdictions within a first class city certifies the maximum 
 11.34  property tax levies for funds under its jurisdiction by charter 
 11.35  to the county auditor by September 15, the city shall be deemed 
 11.36  to have certified its levies for those taxing jurisdictions. 
 12.1      (d) For purposes of this section, "taxing authority" 
 12.2   includes all home rule and statutory cities, towns, counties, 
 12.3   school districts, and special taxing districts as defined in 
 12.4   section 275.066.  Intermediate school districts that levy a tax 
 12.5   under chapter 124 or 136D, joint powers boards established under 
 12.6   sections 123A.44 to 123A.446, and Common School Districts No. 
 12.7   323, Franconia, and No. 815, Prinsburg, are also special taxing 
 12.8   districts for purposes of this section.  
 12.9      Sec. 14.  Minnesota Statutes 2003 Supplement, section 
 12.10  475.61, subdivision 4, is amended to read: 
 12.11     Subd. 4.  [SURPLUS FUNDS.] (a) All such taxes shall be 
 12.12  collected and remitted to the municipality by the county 
 12.13  treasurer as other taxes are collected and remitted, and shall 
 12.14  be used only for payment of the obligations on account of which 
 12.15  levied or to repay advances from other funds used for such 
 12.16  payments, except that any surplus remaining in the debt service 
 12.17  fund when the obligations and interest thereon are paid may be 
 12.18  appropriated to any other general purpose by the municipality.  
 12.19  However, the amount of any surplus remaining in the debt service 
 12.20  fund of a school district when the obligations and interest 
 12.21  thereon are paid shall be used to reduce the general fund levy 
 12.22  authorized pursuant to chapters 122A, 123A, 123B, 124D, and 126C 
 12.23  and the state aids authorized pursuant to chapters 122A, 123A, 
 12.24  123B, 124D, 125A, 126C, and 127A. 
 12.25     (b) If the district qualified for second tier debt service 
 12.26  equalization aid in the last year that it qualified for debt 
 12.27  service equalization aid, the reduction to state aids equals the 
 12.28  lesser of (1) the amount of the surplus times the ratio of the 
 12.29  district's second tier debt service equalization aid to the 
 12.30  district's second tier debt service equalization revenue for the 
 12.31  last year that the district qualified for debt service 
 12.32  equalization aid; or (2) the district's cumulative amount of 
 12.33  debt service equalization aid.  If the district did not qualify 
 12.34  for second tier debt service equalization aid in the last year 
 12.35  that it qualified for debt service equalization aid, the 
 12.36  reduction to state aids equals the lesser of (1) the amount of 
 13.1   the surplus times the ratio of the district's debt service 
 13.2   equalization aid to the district's debt service equalization 
 13.3   revenue for the last year that the district qualified for debt 
 13.4   service equalization aid; or (2) the district's cumulative 
 13.5   amount of debt service equalization aid.  
 13.6      (c) The reduction to the general fund levy equals the total 
 13.7   amount of the surplus minus the reduction to state aids. 
 13.8      Sec. 15.  [REPEALER.] 
 13.9      Minnesota Statutes 2002, section 126C.23, is repealed. 
 13.10                             ARTICLE 2 
 13.11                        EDUCATION EXCELLENCE 
 13.12     Section 1.  Minnesota Statutes 2002, section 13.321, 
 13.13  subdivision 1, is amended to read: 
 13.14     Subdivision 1.  [SCOPE.] The sections referred to in 
 13.15  subdivisions 2 to 9 10 are codified outside this chapter.  Those 
 13.16  sections classify prekindergarten to grade 12 educational data 
 13.17  as other than public, place restrictions on access to government 
 13.18  data, or involve data sharing. 
 13.19     Sec. 2.  Minnesota Statutes 2002, section 13.321, is 
 13.20  amended by adding a subdivision to read: 
 13.21     Subd. 10.  [SCHOOL ACCOUNTABILITY.] Data involving school 
 13.22  performance report cards and data involving adequate yearly 
 13.23  progress determinations are governed by section 120B.36. 
 13.24     Sec. 3.  Minnesota Statutes 2003 Supplement, section 
 13.25  120B.021, subdivision 3, is amended to read: 
 13.26     Subd. 3.  [RULEMAKING.] (a) The commissioner, consistent 
 13.27  with the requirements of this section and section 120B.022, must 
 13.28  adopt statewide rules under section 14.389 for implementing 
 13.29  statewide rigorous core academic standards in language arts, 
 13.30  mathematics, social studies, science, and the arts.  After the 
 13.31  rules authorized under this paragraph are initially adopted, the 
 13.32  commissioner may not amend or repeal these rules nor adopt new 
 13.33  rules on the same topic without specific legislative 
 13.34  authorization.  These The academic standards for language arts, 
 13.35  mathematics, and the arts must be implemented for all students 
 13.36  beginning in the 2003-2004 school year.  The academic standards 
 14.1   for science must be implemented for all students beginning in 
 14.2   the 2004-2005 school year and for social studies for the 
 14.3   2005-2006 school year. 
 14.4      (b) The rules authorized under this section are not subject 
 14.5   to section 14.127.  
 14.6      Sec. 4.  Minnesota Statutes 2003 Supplement, section 
 14.7   120B.024, is amended to read: 
 14.8      120B.024 [GRADUATION REQUIREMENTS; COURSE CREDITS.] 
 14.9      Subdivision 1.  [REQUIRED NUMBER OF COURSE CREDITS.] 
 14.10  Students beginning 9th grade in the 2004-2005 school year and 
 14.11  later must successfully complete the following high school level 
 14.12  course credits for graduation: 
 14.13     (1) four credits of language arts; 
 14.14     (2) three credits of mathematics, encompassing at least 
 14.15  algebra, geometry, statistics, and probability sufficient to 
 14.16  satisfy the academic standard; 
 14.17     (3) three credits of science, including at least one credit 
 14.18  in biology; 
 14.19     (4) three and one-half credits of social studies, including 
 14.20  encompassing at least one credit of United States history, one 
 14.21  credit of geography, 0.5 credits of government and citizenship, 
 14.22  0.5 credits of world history, and 0.5 credits of economics; and 
 14.23     (5) a minimum of eight elective course credits, including 
 14.24  at least one credit in the arts. 
 14.25     A course credit is equivalent to a student's successful 
 14.26  completion of an academic year of study or a student's mastery 
 14.27  of the applicable subject matter, as determined by the local 
 14.28  school district. 
 14.29     Subd. 2.  [RIGOROUS COURSE OF STUDY; WAIVER.] (a) Upon 
 14.30  receiving a student's application approved by the student's 
 14.31  parent or guardian, and with the recommendation of the student's 
 14.32  teacher, a school district, area learning center, or charter 
 14.33  school must declare that a student has completed a content 
 14.34  standard if the local school board, the school board of the 
 14.35  school district in which the area learning center is located, or 
 14.36  charter school board of directors determines that: 
 15.1      (1) the student is participating in a course of study 
 15.2   including an advanced placement or international baccalaureate 
 15.3   course or a learning opportunity outside the curriculum of the 
 15.4   district, area learning center, or charter school that is 
 15.5   equally or more rigorous than the academic standard required by 
 15.6   the district, area learning center, charter school, or the state 
 15.7   required academic standards; and 
 15.8      (2) completing the grade-level benchmarks of the required 
 15.9   academic standards to be waived would preclude the student from 
 15.10  participating in the rigorous course of study or learning 
 15.11  opportunity. 
 15.12     (b) A student who satisfactorily completes a postsecondary 
 15.13  enrollment options course or program under section 124D.09, that 
 15.14  has been approved under paragraph (c), is not required to 
 15.15  complete other requirements of the required academic standards 
 15.16  corresponding to that specific rigorous course of study. 
 15.17     (c) By August 15, 2004, and each year thereafter, the Board 
 15.18  of Regents of the University of Minnesota, the Board of Trustees 
 15.19  of the Minnesota State Colleges and Universities, and the 
 15.20  governing boards of Minnesota private colleges shall determine 
 15.21  the courses offered at each postsecondary institution under the 
 15.22  postsecondary enrollment options program that meet the 
 15.23  requirements of paragraph (a) and shall notify the commissioner 
 15.24  of those courses offered that meet the requirements.  The 
 15.25  commissioner shall make available a listing of the postsecondary 
 15.26  enrollment options courses offered at postsecondary institutions 
 15.27  meeting the requirements of this section. 
 15.28     (d) Notwithstanding paragraph (a) or (b), a student who 
 15.29  entered ninth grade before the 2003-2004 school year and 
 15.30  satisfactorily completes an advanced placement or international 
 15.31  baccalaureate course, or a postsecondary enrollment options 
 15.32  course under section 124D.09, satisfies the requirements of the 
 15.33  required academic standards corresponding to that specific 
 15.34  rigorous course of study. 
 15.35     Sec. 5.  [120B.131] [GIFTED AND TALENTED PROGRAM 
 15.36  DEVELOPMENT AND STUDENT IDENTIFICATION.] 
 16.1      Subdivision 1.  [PURPOSE.] The legislature finds that it is 
 16.2   critical for gifted and talented students to be identified and 
 16.3   appropriately served.  
 16.4      Subd. 2.  [STUDENT IDENTIFICATION.] Gifted learners are 
 16.5   assessed for placement in appropriate educational services.  
 16.6   Consideration in student identification includes: 
 16.7      (1) balance of multiple objective and subjective criteria, 
 16.8   which may include performances as well as test results; 
 16.9      (2) ongoing, comprehensive district assessment system that 
 16.10  informs instruction and services offered; 
 16.11     (3) use of assessment instruments and procedures that are 
 16.12  valid and reliable and based on current theory and research; 
 16.13     (4) placement decisions that are fair and consistent, 
 16.14  valid, and reliable; 
 16.15     (5) provisions for informed consent, retention, 
 16.16  reassessment, exiting, and appeals; 
 16.17     (6) an open process available to all students; and 
 16.18     (7) an identification process and collected information 
 16.19  shared with parents educational staff, and students themselves. 
 16.20     Sec. 6.  Minnesota Statutes 2003 Supplement, section 
 16.21  120B.36, is amended to read: 
 16.22     120B.36 [SCHOOL ACCOUNTABILITY; APPEALS PROCESS.] 
 16.23     Subdivision 1.  [SCHOOL PERFORMANCE REPORT CARDS.] (a) The 
 16.24  commissioner shall use objective criteria based on levels of 
 16.25  student performance to identify four to six designations 
 16.26  applicable to high and low performing public schools.  The 
 16.27  objective criteria shall include at least student academic 
 16.28  performance, school safety, and staff characteristics, with a 
 16.29  value-added growth component added by the 2006-2007 school year. 
 16.30     (b) The commissioner shall develop, annually update, and 
 16.31  post on the department Web site school performance report cards. 
 16.32  A school's designation must be clearly stated on each school 
 16.33  performance report card. 
 16.34     (c) The commissioner must make available the first school 
 16.35  designations and school performance report cards by November 
 16.36  2003, and during the beginning of each school year thereafter.  
 17.1      (d) A school or district may appeal in writing a 
 17.2   designation under this section to the commissioner within 30 
 17.3   days of receiving the designation.  The commissioner's decision 
 17.4   to uphold or deny an appeal is final.  
 17.5      (e) School performance report cards are nonpublic data 
 17.6   under section 13.02, subdivision 9, until the department posts 
 17.7   the data to its public Web site.  The department shall annually 
 17.8   post school performance report cards to its public Web site no 
 17.9   later than September 1. 
 17.10     Subd. 2.  [ADEQUATE YEARLY PROGRESS DATA.] All data the 
 17.11  department receives, collects, or creates for purposes of 
 17.12  determining adequate yearly progress designations under Public 
 17.13  Law 107-110, section 1116, are nonpublic data under section 
 17.14  13.02, subdivision 9, until the department posts the results of 
 17.15  its determinations concerning yearly progress designations to 
 17.16  its public Web site.  Districts must provide parents 
 17.17  sufficiently detailed summary data to permit parents to appeal 
 17.18  under Public Law 107-110, section 1116(b)(2).  The department 
 17.19  shall annually post adequate yearly progress data to its public 
 17.20  Web site no later than September 1. 
 17.21     Sec. 7.  Minnesota Statutes 2002, section 124D.59, as 
 17.22  amended by Laws 2003, First Special Session chapter 9, article 
 17.23  1, section 13, is amended to read: 
 17.24     124D.59 [DEFINITIONS.] 
 17.25     Subdivision 1.  [GENERALLY.] For purposes of sections 
 17.26  124D.58 to 124D.65, the terms defined in this section shall have 
 17.27  the meanings given them. 
 17.28     Subd. 1a.  [PRIMARY LANGUAGE.] "Primary language" means a 
 17.29  language other than English which is the language normally used 
 17.30  by the child or the language which is spoken in the child's home 
 17.31  environment.  A pupil's primary language as declared by a parent 
 17.32  or guardian shall be deemed to be a language other than English 
 17.33  if: 
 17.34     (1) the pupil first spoke a language other than English; 
 17.35     (2) the primary language spoken in the home of the pupil is 
 17.36  not English; or 
 18.1      (3) the language most often spoken by the pupil is not 
 18.2   English. 
 18.3      The primary language of each student, regardless of 
 18.4   proficiency status, must be determined with a home language 
 18.5   questionnaire the first time that student enrolls in the 
 18.6   district. 
 18.7      Subd. 1b.  [LANGUAGE MINORITY STUDENT.] A "language 
 18.8   minority student" means a pupil in kindergarten through grade 12 
 18.9   who has a primary language other than English. 
 18.10     Subd. 2.  [PUPIL OF LIMITED ENGLISH PROFICIENCY LANGUAGE 
 18.11  LEARNER.] (a) "Pupil of limited English proficiency language 
 18.12  learner" means a pupil in kindergarten through grade 12 who 
 18.13  meets the following requirements: 
 18.14     (1) the pupil, as declared by a parent or guardian first 
 18.15  learned a language other than English, comes from a home where 
 18.16  the language usually spoken is other than English, or usually 
 18.17  speaks a language other than English is a language minority 
 18.18  student as defined in subdivision 1b; and 
 18.19     (2) the pupil is determined by developmentally appropriate 
 18.20  measures, which might include observations, teacher judgment, 
 18.21  parent recommendations, or developmentally appropriate 
 18.22  assessment instruments, to lack the necessary English skills to 
 18.23  participate fully in classes taught in English. 
 18.24     (b) Notwithstanding paragraph (a), a pupil in grades 4 
 18.25  through 12 who was enrolled in a Minnesota public school on the 
 18.26  dates during the previous school year when a commissioner 
 18.27  provided assessment that measures the pupil's emerging academic 
 18.28  English was administered, shall not be counted as a pupil of 
 18.29  limited an English proficiency language learner in calculating 
 18.30  limited English proficiency language learner pupil units under 
 18.31  section 126C.05, subdivision 17, and shall not generate 
 18.32  state limited English proficiency language learner aid under 
 18.33  section 124D.65, subdivision 5, unless the pupil scored below 
 18.34  the state cutoff score on an assessment measuring emerging 
 18.35  academic English provided by the commissioner during the 
 18.36  previous school year. 
 19.1      (c) Notwithstanding paragraphs (a) and (b), a pupil in 
 19.2   kindergarten through grade 12 shall not be counted as a pupil of 
 19.3   limited an English proficiency language learner in calculating 
 19.4   limited English proficiency language learner pupil units under 
 19.5   section 126C.05, subdivision 17, and shall not generate 
 19.6   state limited English proficiency language learner aid under 
 19.7   section 124D.65, subdivision 5, if: 
 19.8      (1) the pupil is not enrolled during the current fiscal 
 19.9   year in an educational program for pupils of limited English 
 19.10  proficiency language learners in accordance with sections 
 19.11  124D.58 to 124D.64; or 
 19.12     (2) the pupil has generated five or more years of average 
 19.13  daily membership in Minnesota public schools since July 1, 1996. 
 19.14     Subd. 2a.  [TRANSITIONAL LANGUAGE LEARNER.] "Transitional 
 19.15  language learner" means a pupil who meets the following 
 19.16  requirements: 
 19.17     (1) the pupil is a language minority student; 
 19.18     (2) the pupil has received scores indicating attainment of 
 19.19  English proficiency on a test of English language acquisition 
 19.20  approved by the commissioner; and 
 19.21     (3) the pupil has not scored in the proficient level on the 
 19.22  state reading assessment aligned with the state academic 
 19.23  standards for three years, or for as many times as the state 
 19.24  reading assessment is given during the three-year window after 
 19.25  the pupil receives scores indicating English proficiency on a 
 19.26  test of English language acquisition approved by the 
 19.27  commissioner. 
 19.28     Subd. 2b.  [FLUENT LANGUAGE LEARNER.] "Fluent language 
 19.29  learner" means a pupil in kindergarten through grade 12 who 
 19.30  meets the following requirements: 
 19.31     (1) the pupil is a language minority student; 
 19.32     (2) the pupil has received scores indicating attainment of 
 19.33  English proficiency on a test of English language acquisition 
 19.34  approved by the commissioner; and 
 19.35     (3) the pupil has scored in the proficient level on the 
 19.36  state reading assessment aligned with the state academic 
 20.1   standards for three years, or for as many times as the state 
 20.2   reading assessment is given during the three-year window after 
 20.3   the pupil receives scores indicating attainment of English 
 20.4   proficiency on a test of English language acquisition approved 
 20.5   by the commissioner. 
 20.6      Subd. 3.  [ESSENTIAL INSTRUCTIONAL PERSONNEL.] "Essential 
 20.7   instructional personnel" means the following:  
 20.8      (1) a teacher licensed by the state Board of Teaching to 
 20.9   teach bilingual education or English as a second language; 
 20.10     (2) a teacher with an exemption from a teaching license 
 20.11  requirement pursuant to section 124D.62 who is employed in a 
 20.12  school district's English as a second language or bilingual 
 20.13  education program; 
 20.14     (3) any teacher as defined in section 122A.15 who holds a 
 20.15  valid license from the state Board of Teaching, if the district 
 20.16  assures the department that the teacher will obtain the 
 20.17  preservice and in-service training the department considers 
 20.18  necessary to enable the teacher to provide appropriate service 
 20.19  to pupils of limited English proficiency.  
 20.20     Subd. 4.  [ENGLISH AS A SECOND LANGUAGE PROGRAM.] "English 
 20.21  as a second language program" means a program for the 
 20.22  instruction of pupils of limited English proficiency language 
 20.23  learners in the following English language skills:  reading, 
 20.24  writing, listening and speaking.  
 20.25     Subd. 5.  [BILINGUAL EDUCATION PROGRAM.] "Bilingual 
 20.26  education program" means an educational program in which 
 20.27  instruction is given in both English and the primary language of 
 20.28  the pupil of limited English proficiency language learner to the 
 20.29  extent necessary to allow the pupil to progress effectively 
 20.30  through the educational system and to attain the basic skills of 
 20.31  reading, writing, listening, and speaking in the English 
 20.32  language so that the pupil will be able to perform ordinary 
 20.33  classwork successfully in English.  
 20.34     Subd. 6.  [PRIMARY LANGUAGE.] "Primary language" means a 
 20.35  language other than English which is the language normally used 
 20.36  by the child or the language which is spoken in the child's home 
 21.1   environment.  
 21.2      Subd. 7.  [PARENT.] "Parent" includes a child's legal 
 21.3   guardian.  
 21.4      Subd. 8.  [EDUCATIONAL PROGRAM FOR PUPILS OF LIMITED 
 21.5   ENGLISH PROFICIENCY LANGUAGE LEARNERS.] "Educational program for 
 21.6   pupils of limited English proficiency language learners" means 
 21.7   an English as a second language program, bilingual education 
 21.8   program, or both an English as a second language and a bilingual 
 21.9   education program. 
 21.10     Sec. 8.  Minnesota Statutes 2002, section 124D.61, is 
 21.11  amended to read: 
 21.12     124D.61 [GENERAL REQUIREMENTS FOR PROGRAMS.] 
 21.13     (a) A district which receives aid pursuant to section 
 21.14  124D.65 that enrolls one or more English language learners must 
 21.15  comply with the following program requirements: under paragraphs 
 21.16  (b) and (c). 
 21.17     (b) A district must implement an educational program for 
 21.18  English language learners if one or more English language 
 21.19  learners are enrolled in the district. 
 21.20     (c) An educational program for English language learners 
 21.21  must meet the following requirements: 
 21.22     (1) entrance and exit criteria must be documented by the 
 21.23  district, applied uniformly to English language learners, and 
 21.24  made available to parents and other stakeholders upon request; 
 21.25     (2) the curriculum of the educational program for English 
 21.26  language learners must be coordinated with the mainstream 
 21.27  curriculum in which the English language learners are involved 
 21.28  and must be consistent with standards set forth by the 
 21.29  commissioner; 
 21.30     (3) the amount of service offered English language learners 
 21.31  through an educational program specifically for English language 
 21.32  learners must be designed to meet varying student needs across 
 21.33  English proficiency levels; 
 21.34     (1) (4) to the extent possible, the district must avoid 
 21.35  isolating children of limited English proficiency English 
 21.36  language learners for a substantial part of the school day; and 
 22.1      (2) (5) in predominantly nonverbal subjects, such as art, 
 22.2   music, and physical education, pupils of limited English 
 22.3   proficiency English language learners shall be permitted to 
 22.4   participate fully and on an equal basis with their 
 22.5   contemporaries in public school classes provided for these 
 22.6   subjects.  To the extent possible, the district must assure to 
 22.7   pupils enrolled in a program for limited English proficient 
 22.8   students an education program for English language learners an 
 22.9   equal and meaningful opportunity to participate fully with other 
 22.10  pupils in all extracurricular activities. 
 22.11     Sec. 9.  [MINNESOTA'S HIGH ACADEMIC STANDARDS.] 
 22.12     (a) The standards for social studies and science adopted by 
 22.13  the commissioner of education under Minnesota Statutes, section 
 22.14  120B.021, must be identical to: 
 22.15     (1) the K-12 standards for social studies contained in the 
 22.16  document labeled "Minnesota Academic Standards, Social Studies 
 22.17  K-12, January 15, 2004, Minnesota Academic Standards Committee, 
 22.18  Minnesota Department of Education"; and 
 22.19     (2) the K-12 standards for science contained in the 
 22.20  document labeled "Minnesota Academic Standards, Science K-12, 
 22.21  January 15, 2004, Minnesota Academic Standards Committee, 
 22.22  Minnesota Department of Education." 
 22.23     (b) The K-12 standards documents must be deposited with the 
 22.24  Minnesota revisor of statutes, the Legislative Reference 
 22.25  Library, and the Minnesota State Law Library, where the 
 22.26  documents shall be maintained until the commissioner adopts 
 22.27  rules for implementing statewide rigorous core academic 
 22.28  standards in social studies and science under Minnesota 
 22.29  Statutes, section 120B.021, subdivision 3.  The revisor must 
 22.30  determine that the rules are identical to the documents 
 22.31  deposited with it under this section before the revisor approves 
 22.32  the form of the rules.  In approving the form of the rules, the 
 22.33  revisor may make any needed grammatical and form changes. 
 22.34     <b>[EFFECTIVE DATE.]</b> This section is effective the day 
 22.35  following final enactment. 
 22.36     Sec. 10.  [RULEMAKING AUTHORITY.] 
 23.1      Subdivision 1.  [SUPPLEMENTAL EDUCATION SERVICE PROVIDERS.] 
 23.2   The commissioner of education shall adopt rules under Minnesota 
 23.3   Statutes, chapter 14, making permanent the supplemental 
 23.4   education service provider exempt rules authorized under Laws 
 23.5   2003, chapter 129, article 2, section 3. 
 23.6      Subd. 2.  [STATEWIDE TESTING.] The commissioner of 
 23.7   education shall adopt rules under Minnesota Statutes, chapter 
 23.8   13, for the administration of statewide accountability tests 
 23.9   under Minnesota Statutes, section 120B.30, to ensure security 
 23.10  and integrity of the tests and test results. 
 23.11     <b>[EFFECTIVE DATE.]</b> This section is effective the day 
 23.12  following final enactment. 
 23.13     Sec. 11.  [REVISOR'S INSTRUCTION.] 
 23.14     In Minnesota Statutes and Minnesota Rules, the revisor of 
 23.15  statutes shall change the terms and phrases "pupil of limited 
 23.16  English proficiency," "limited English proficiency," "individual 
 23.17  students whose first language is not English," "the limited 
 23.18  English speaking children," "those for whom English is a second 
 23.19  language," "persons for whom English is a second language," "of 
 23.20  pupils known to speak English as a second language," and similar 
 23.21  terms and phrases to "English language learners" where 
 23.22  appropriate. 
 23.23                             ARTICLE 3 
 23.24                          SPECIAL PROGRAMS 
 23.25     Section 1.  Minnesota Statutes 2002, section 13.46, 
 23.26  subdivision 1, is amended to read: 
 23.27     Subdivision 1.  [DEFINITIONS.] As used in this section: 
 23.28     (a) "Individual" means an individual according to section 
 23.29  13.02, subdivision 8, but does not include a vendor of services. 
 23.30     (b) "Program" includes all programs for which authority is 
 23.31  vested in a component of the welfare system according to statute 
 23.32  or federal law, including, but not limited to, the aid to 
 23.33  families with dependent children program formerly codified in 
 23.34  sections 256.72 to 256.87, Minnesota Family Investment Program, 
 23.35  medical assistance, general assistance, general assistance 
 23.36  medical care, and child support collections.  
 24.1      (c) "Welfare system" includes the Department of Human 
 24.2   Services, local social services agencies, the Department of 
 24.3   Education maltreatment investigations, county welfare agencies, 
 24.4   private licensing agencies, the public authority responsible for 
 24.5   child support enforcement, human services boards, community 
 24.6   mental health center boards, state hospitals, state nursing 
 24.7   homes, the ombudsman for mental health and mental retardation, 
 24.8   and persons, agencies, institutions, organizations, and other 
 24.9   entities under contract to any of the above agencies to the 
 24.10  extent specified in the contract. 
 24.11     (d) "Mental health data" means data on individual clients 
 24.12  and patients of community mental health centers, established 
 24.13  under section 245.62, mental health divisions of counties and 
 24.14  other providers under contract to deliver mental health 
 24.15  services, or the ombudsman for mental health and mental 
 24.16  retardation. 
 24.17     (e) "Fugitive felon" means a person who has been convicted 
 24.18  of a felony and who has escaped from confinement or violated the 
 24.19  terms of probation or parole for that offense. 
 24.20     (f) "Private licensing agency" means an agency licensed by 
 24.21  the commissioner of human services under chapter 245A to perform 
 24.22  the duties under section 245A.16. 
 24.23     Sec. 2.  Minnesota Statutes 2003 Supplement, section 
 24.24  124D.095, subdivision 4, is amended to read: 
 24.25     Subd. 4.  [ON-LINE LEARNING PARAMETERS.] (a) An on-line 
 24.26  learning student must receive academic credit for completing the 
 24.27  requirements of an on-line learning course or program.  
 24.28  Secondary credits granted to an on-line learning student must be 
 24.29  counted toward the graduation and credit requirements of the 
 24.30  enrolling district.  The enrolling district must apply the same 
 24.31  graduation requirements to all students, including on-line 
 24.32  learning students, and must continue to provide nonacademic 
 24.33  services to on-line learning students.  If a student completes 
 24.34  an on-line learning course or program that meets or exceeds a 
 24.35  graduation standard or grade progression requirement at the 
 24.36  enrolling district, that standard or requirement is met.  The 
 25.1   enrolling district must use the same criteria for accepting 
 25.2   on-line learning credits or courses as it does for accepting 
 25.3   credits or courses for transfer students under section 124D.03, 
 25.4   subdivision 9.  The enrolling district may reduce the teacher 
 25.5   contact time of an on-line learning student in proportion to the 
 25.6   number of on-line learning courses the student takes from an 
 25.7   on-line learning provider that is not the enrolling district.  
 25.8      (b) An on-line learning student may: 
 25.9      (1) enroll during a single school year in a maximum of 12 
 25.10  semester-long courses or their equivalent delivered by an 
 25.11  on-line learning provider or the enrolling district; 
 25.12     (2) complete course work at a grade level that is different 
 25.13  from the student's current grade level; and 
 25.14     (3) enroll in additional courses with the on-line learning 
 25.15  provider under a separate agreement that includes terms for 
 25.16  payment of any tuition or course fees.  
 25.17     (c) A student with a disability may enroll in an on-line 
 25.18  learning course or program if the student's IEP team determines 
 25.19  that on-line learning is appropriate education for the student.  
 25.20  The student's IEP must then be adapted to reflect the on-line 
 25.21  learning option. 
 25.22     (d) An on-line learning student has the same access to the 
 25.23  computer hardware and education software available in a school 
 25.24  as all other students in the enrolling district.  An on-line 
 25.25  learning provider must assist an on-line learning student whose 
 25.26  family qualifies for the education tax credit under section 
 25.27  290.0674 to acquire computer hardware and educational software 
 25.28  for on-line learning purposes. 
 25.29     (e) An enrolling district may offer on-line learning to its 
 25.30  enrolled students.  Such on-line learning does not generate 
 25.31  on-line learning funds under this section.  An enrolling 
 25.32  district that offers on-line learning only to its enrolled 
 25.33  students is not subject to the reporting requirements or review 
 25.34  criteria under subdivision 7.  A teacher with a Minnesota 
 25.35  license must assemble and deliver instruction to enrolled 
 25.36  students receiving on-line learning from an enrolling district.  
 26.1   The instruction may include curriculum developed by persons 
 26.2   other than a teacher with a Minnesota license. 
 26.3      (f) An on-line learning provider that is not the enrolling 
 26.4   district is subject to the reporting requirements and review 
 26.5   criteria under subdivision 7.  A teacher with a Minnesota 
 26.6   license must assemble and deliver instruction to on-line 
 26.7   learning students.  The instruction may include curriculum 
 26.8   developed by persons other than a teacher with a Minnesota 
 26.9   license.  Unless the commissioner grants a waiver, a teacher 
 26.10  providing on-line learning instruction must not instruct more 
 26.11  than 40 students in any one on-line learning course or program.  
 26.12     Sec. 3.  Minnesota Statutes 2002, section 125A.023, 
 26.13  subdivision 3, is amended to read: 
 26.14     Subd. 3.  [DEFINITIONS.] For purposes of this section and 
 26.15  section 125A.027, the following terms have the meanings given 
 26.16  them: 
 26.17     (a) "Health plan" means: 
 26.18     (1) a health plan under section 62Q.01, subdivision 3; 
 26.19     (2) a county-based purchasing plan under section 256B.692; 
 26.20     (3) a self-insured health plan established by a local 
 26.21  government under section 471.617; or 
 26.22     (4) self-insured health coverage provided by the state to 
 26.23  its employees or retirees. 
 26.24     (b) For purposes of this section, "health plan company" 
 26.25  means an entity that issues a health plan as defined in 
 26.26  paragraph (a). 
 26.27     (c) "Individual interagency intervention plan" means a 
 26.28  standardized written plan describing those programs or services 
 26.29  and the accompanying funding sources available to eligible 
 26.30  children with disabilities. 
 26.31     (d) "Interagency intervention service system" means a 
 26.32  system that coordinates services and programs required in state 
 26.33  and federal law to meet the needs of eligible children with 
 26.34  disabilities ages three to birth through 21, including: 
 26.35     (1) services provided under the following programs or 
 26.36  initiatives administered by state or local agencies: 
 27.1      (i) the maternal and child health program under title V of 
 27.2   the Social Security Act, United States Code, title 42, sections 
 27.3   701 to 709; 
 27.4      (ii) the Minnesota Children with Special Health Needs 
 27.5   program under sections 144.05 and 144.07; 
 27.6      (iii) the Individuals with Disabilities Education Act under 
 27.7   United States Code, title 20, chapter 33, subchapter II, 
 27.8   sections 1411 to 1420, Part B, section 619, and Part C as 
 27.9   amended; 
 27.10     (iii) (iv) medical assistance under title 42, chapter 7, of 
 27.11  the Social Security Act, United States Code, title 42, chapter 
 27.12  7, subchapter XIX, section 1396, et seq.; 
 27.13     (iv) (v) the developmental disabilities Assistance and Bill 
 27.14  of Rights Act, United States Code, title 42, chapter 75, 
 27.15  subchapter II, sections 6021 to 6030, Part B services under 
 27.16  chapter 256B; 
 27.17     (v) (vi) the Head Start Act, United States Code, title 42, 
 27.18  chapter 105, subchapter II, sections 9831 to 9852 under title 
 27.19  42, chapter 105, of the Social Security Act; 
 27.20     (vi) (vii) vocational rehabilitation services provided 
 27.21  under chapter chapters 248 and 268A and the Rehabilitation Act 
 27.22  of 1973; 
 27.23     (vii) (viii) Juvenile Court Act services provided under 
 27.24  sections 260.011 to 260.91; 260B.001 to 260B.446; and 260C.001 
 27.25  to 260C.451; 
 27.26     (viii) the children's mental health collaboratives under 
 27.27  section 245.493; 
 27.28     (ix) the family service collaboratives under section 
 27.29  124D.23; 
 27.30     (x) the family community support plan under section 
 27.31  245.4881, subdivision 4; 
 27.32     (xi) the MinnesotaCare program under chapter 256L; 
 27.33     (xii) (ix) Minnesota Comprehensive Children's Mental Health 
 27.34  Act under section 245.487; 
 27.35     (x) the community health services grants under chapter 
 27.36  145 sections 145.88 to 145.9266; 
 28.1      (xiii) the Community Social Services Act funding under the 
 28.2   Social Security Act, United States Code, title 42, sections 1397 
 28.3   to 1397f; and 
 28.4      (xiv) the community transition interagency committees under 
 28.5   section 125A.22; 
 28.6      (xi) the Local Public Health Act under chapter 145A; and 
 28.7      (xii) the Children and Community Services Act, sections 
 28.8   256M.60 to 256M.80; 
 28.9      (2) service provision and funding that can be coordinated 
 28.10  through: 
 28.11     (i) the children's mental health collaborative under 
 28.12  section 245.493; 
 28.13     (ii) the family services collaborative under section 
 28.14  124D.23; 
 28.15     (iii) the community transition interagency committees under 
 28.16  section 125A.22; and 
 28.17     (iv) the interagency early intervention committees under 
 28.18  section 125A.259; 
 28.19     (3) financial and other funding programs to be coordinated 
 28.20  including medical assistance under title 42, chapter 7, of the 
 28.21  Social Security Act, the MinnesotaCare program under chapter 
 28.22  256L, Supplemental Social Security Income, Developmental 
 28.23  Disabilities Assistance, and any other employment-related 
 28.24  activities associated with the Social Security Administration; 
 28.25  and services provided under a health plan in conformity with an 
 28.26  individual family service plan or an individual education 
 28.27  plan or an individual interagency intervention plan; and 
 28.28     (3) (4) additional appropriate services that local agencies 
 28.29  and counties provide on an individual need basis upon 
 28.30  determining eligibility and receiving a request from the 
 28.31  interagency early intervention committee and the child's parent. 
 28.32     (e) "Children with disabilities" has the meaning given in 
 28.33  section 125A.02. 
 28.34     (f) A "standardized written plan" means those individual 
 28.35  services or programs available through the interagency 
 28.36  intervention service system to an eligible child other than the 
 29.1   services or programs described in the child's individual 
 29.2   education plan or the child's individual family service plan. 
 29.3      Sec. 4.  Minnesota Statutes 2003 Supplement, section 
 29.4   125A.023, subdivision 4, is amended to read: 
 29.5      Subd. 4.  [STATE INTERAGENCY COMMITTEE.] (a) The governor 
 29.6   shall convene a 19-member an interagency committee to develop 
 29.7   and implement a coordinated, multidisciplinary, interagency 
 29.8   intervention service system for children ages three to birth 
 29.9   through 21 with disabilities.  The commissioners of commerce, 
 29.10  education, health, human rights, human services, economic 
 29.11  security, and corrections employment and economic development 
 29.12  shall each appoint two committee members from their departments; 
 29.13  the commissioners of corrections, human rights, and commerce 
 29.14  shall each appoint one member from their departments; the 
 29.15  Association of Minnesota Counties shall appoint two county 
 29.16  representatives, one of whom must be an elected official, as 
 29.17  committee members; and the Minnesota School Boards Association, 
 29.18  the Minnesota Administrators of Special Education, and the 
 29.19  School Nurse Association of Minnesota shall each appoint one 
 29.20  committee member; the governor shall appoint two parent 
 29.21  representatives of a child or youth who is eligible for special 
 29.22  education and is receiving coordinated services from public 
 29.23  agencies.  The committee shall select a chair from among its 
 29.24  members. 
 29.25     (b) The committee shall: 
 29.26     (1) identify and assist in removing state and federal 
 29.27  barriers to local coordination of services provided to children 
 29.28  with disabilities; 
 29.29     (2) identify adequate, equitable, and flexible funding 
 29.30  sources to streamline these services; 
 29.31     (3) develop guidelines for implementing policies that 
 29.32  ensure a comprehensive and coordinated system of all state and 
 29.33  local agency services, including multidisciplinary assessment 
 29.34  practices for children with disabilities ages three to 21; 
 29.35     (4) develop, consistent with federal law, a standardized 
 29.36  written plan for providing services to a child with 
 30.1   disabilities; 
 30.2      (5) identify how current systems for dispute resolution can 
 30.3   be coordinated and develop guidelines for that coordination; 
 30.4      (6) develop an evaluation process to measure the success of 
 30.5   state and local interagency efforts in improving the quality and 
 30.6   coordination of services to children with disabilities ages 
 30.7   three to 21; 
 30.8      (7) develop guidelines to assist the governing boards of 
 30.9   the interagency early intervention committees in carrying out 
 30.10  the duties assigned in section 125A.027, subdivision 1, 
 30.11  paragraph (b); and 
 30.12     (8) carry out other duties necessary to develop and 
 30.13  implement within communities a coordinated, multidisciplinary, 
 30.14  interagency intervention service system for children with 
 30.15  disabilities. 
 30.16     (c) The committee shall consult on an ongoing basis with 
 30.17  the state Education Advisory Committee for Special Education and 
 30.18  the governor's Interagency Coordinating Council in carrying out 
 30.19  its duties under this section, including assisting the governing 
 30.20  boards of the interagency early intervention committees. 
 30.21     Sec. 5.  Minnesota Statutes 2002, section 125A.03, is 
 30.22  amended to read: 
 30.23     125A.03 [SPECIAL INSTRUCTION FOR CHILDREN WITH A 
 30.24  DISABILITY.] 
 30.25     (a) As defined in paragraph (b), every district must 
 30.26  provide special instruction and services, either within the 
 30.27  district or in another district, for all children with a 
 30.28  disability, including those suspended or expelled from school 
 30.29  for more than five days, who are residents of the district and 
 30.30  who are disabled as set forth in section 125A.02.  For purposes 
 30.31  of state and federal special education laws, the phrase "special 
 30.32  instruction and services" in the state education code means a 
 30.33  free and appropriate public education provided to an eligible 
 30.34  child with disabilities and includes special education and 
 30.35  related services defined in the Individuals with Disabilities 
 30.36  Education Act, subpart A, section 300.24.  
 31.1      (b) Notwithstanding any age limits in laws to the contrary, 
 31.2   special instruction and services must be provided from birth 
 31.3   until July 1 after the child with a disability becomes 21 years 
 31.4   old but shall not extend beyond secondary school or its 
 31.5   equivalent, except as provided in section 124D.68, subdivision 
 31.6   2.  Local health, education, and social service agencies must 
 31.7   refer children under age five who are known to need or suspected 
 31.8   of needing special instruction and services to the school 
 31.9   district.  Districts with less than the minimum number of 
 31.10  eligible children with a disability as determined by the 
 31.11  commissioner must cooperate with other districts to maintain a 
 31.12  full range of programs for education and services for children 
 31.13  with a disability.  This section does not alter the compulsory 
 31.14  attendance requirements of section 120A.22. 
 31.15     Sec. 6.  Laws 2003, First Special Session chapter 9, 
 31.16  article 3, section 19, is amended to read: 
 31.17     Sec. 19.  [DEPARTMENT RESPONSIBILITY.] 
 31.18     By January 1 June 1, 2004, the commissioner of education 
 31.19  must adopt rules that: 
 31.20     (1) establish criteria for selecting hearing officers, the 
 31.21  standards of conduct to which a hearing officer must adhere, and 
 31.22  a process to evaluate the hearing system; 
 31.23     (2) ensure that appropriately trained and knowledgeable 
 31.24  persons conduct due process hearings in compliance with federal 
 31.25  law; and 
 31.26     (3) create standards for expedited due process hearings 
 31.27  under federal law. 
 31.28     By March 1, 2004, the commissioner of education must 
 31.29  develop and make available a notice for participants in 
 31.30  state-provided dispute resolution processes that informs 
 31.31  participants of their rights concerning dispute resolution. 
 31.32     <b>[EFFECTIVE DATE.]</b> This section is effective retroactive to 
 31.33  July 1, 2003. 
 31.34                             ARTICLE 4 
 31.35                             LIBRARIES 
 31.36     Section 1.  Minnesota Statutes 2002, section 134.31, is 
 32.1   amended by adding a subdivision to read: 
 32.2      Subd. 6.  [ADVISORY COMMITTEE.] The commissioner shall 
 32.3   appoint an advisory committee of five members to advise the 
 32.4   staff of the Minnesota Library for the Blind and Physically 
 32.5   Handicapped on long-range planning and library services.  
 32.6   Members shall be people who use the library.  Section 15.059 
 32.7   governs this committee except that the committee expires June 
 32.8   30, 2007. 
 32.9      <b>[EFFECTIVE DATE.]</b> This section is effective June 30, 2004. 
 32.10     Sec. 2.  Minnesota Statutes 2002, section 134.45, 
 32.11  subdivision 5, is amended to read: 
 32.12     Subd. 5.  [QUALIFICATION.] A public library jurisdiction 
 32.13  may apply for a grant in an amount up to $150,000 $200,000 or 50 
 32.14  percent of the approved costs of removing architectural barriers 
 32.15  from a building or site, whichever is less.  Grants may be made 
 32.16  only for projects in existing buildings used as a library, or to 
 32.17  prepare another existing building for use as a library.  
 32.18  Renovation of an existing building may include an addition to 
 32.19  the building if the additional space is necessary to provide 
 32.20  accessibility or if relocating public spaces to the ground level 
 32.21  provides improved overall accessibility.  Grants must not be 
 32.22  used to pay part of the cost of meeting accessibility 
 32.23  requirements in a new building. 
 32.24                             ARTICLE 5 
 32.25                           STATE AGENCIES 
 32.26     Section 1.  Minnesota Statutes 2002, section 122A.20, 
 32.27  subdivision 2, is amended to read: 
 32.28     Subd. 2.  [MANDATORY REPORTING.] A school board must report 
 32.29  to the Board of Teaching, the Board of School Administrators, or 
 32.30  the Board of Trustees of the Minnesota State Colleges and 
 32.31  Universities, whichever has jurisdiction over the teacher's or 
 32.32  administrator's license, when its teacher or administrator is 
 32.33  discharged or resigns from employment after a charge is filed 
 32.34  with the school board under section 122A.41, subdivisions 6, 
 32.35  clauses (1), (2), and (3), and 7, or after charges are filed 
 32.36  that are ground for discharge under section 122A.40, subdivision 
 33.1   13, paragraph (a), clauses (1) to (5), or when a teacher or 
 33.2   administrator is suspended or resigns while an investigation is 
 33.3   pending under section 122A.40, subdivision 13, paragraph (a) 
 33.4   clauses (1) to (5); 122A.41, subdivisions 6, clauses (1), (2), 
 33.5   and (3), and 7; or 626.556, or when a teacher or administrator 
 33.6   is suspended without an investigation under section 122A.41, 
 33.7   subdivisions 6, paragraph (a), clauses (1), (2), and (3), and 7; 
 33.8   or 626.556.  The report must be made to the appropriate 
 33.9   licensing board within ten days after the discharge, suspension, 
 33.10  or resignation has occurred.  The licensing board to which the 
 33.11  report is made must investigate the report for violation of 
 33.12  subdivision 1 and the reporting board must cooperate in the 
 33.13  investigation.  Notwithstanding any provision in chapter 13 or 
 33.14  any law to the contrary, upon written request from the licensing 
 33.15  board having jurisdiction over the license, a board or school 
 33.16  superintendent shall provide the licensing board with 
 33.17  information about the teacher or administrator from the 
 33.18  district's files, any termination or disciplinary proceeding, 
 33.19  any settlement or compromise, or any investigative file.  Upon 
 33.20  written request from the appropriate licensing board, a board or 
 33.21  school superintendent may, at the discretion of the board or 
 33.22  school superintendent, solicit the written consent of a student 
 33.23  and the student's parent to provide the licensing board with 
 33.24  information that may aid the licensing board in its 
 33.25  investigation and license proceedings.  The licensing board's 
 33.26  request need not identify a student or parent by name.  The 
 33.27  consent of the student and the student's parent must meet the 
 33.28  requirements of chapter 13 and Code of Federal Regulations, 
 33.29  title 34, section 99.30.  The licensing board may provide a 
 33.30  consent form to the district.  Any data transmitted to any board 
 33.31  under this section is private data under section 13.02, 
 33.32  subdivision 12, notwithstanding any other classification of the 
 33.33  data when it was in the possession of any other agency. 
 33.34     The licensing board to which a report is made must transmit 
 33.35  to the Attorney General's Office any record or data it receives 
 33.36  under this subdivision for the sole purpose of having the 
 34.1   Attorney General's Office assist that board in its 
 34.2   investigation.  When the Attorney General's Office has informed 
 34.3   an employee of the appropriate licensing board in writing that 
 34.4   grounds exist to suspend or revoke a teacher's license to teach, 
 34.5   that licensing board must consider suspending or revoking or 
 34.6   decline to suspend or revoke the teacher's or administrator's 
 34.7   license within 45 days of receiving a stipulation executed by 
 34.8   the teacher or administrator under investigation or a 
 34.9   recommendation from an administrative law judge that 
 34.10  disciplinary action be taken. 
 34.11     Sec. 2.  Minnesota Statutes 2003 Supplement, section 
 34.12  127A.05, subdivision 4, is amended to read: 
 34.13     Subd. 4.  [ADMINISTRATIVE RULES.] The commissioner may 
 34.14  adopt new rules or amend any existing rules only under with or 
 34.15  without specific authority and consistent with the requirements 
 34.16  of chapter 14.  The commissioner may repeal any existing rules 
 34.17  adopted by the commissioner.  The commissioner may grant a 
 34.18  variance to rules adopted by the commissioner upon application 
 34.19  by a school district for purposes of implementing experimental 
 34.20  programs in learning or school management.  This subdivision 
 34.21  shall not prohibit the commissioner from making technical 
 34.22  changes or corrections to rules adopted by the commissioner.