1.1 	A bill for an act
1.2 	relating to education finance; including certain special education fiscal agents in 
1.3 	the list of cooperative special education service providers eligible for a waiver; 
1.4 	amending Minnesota Statutes 2005 Supplement, section 125A.11, subdivision 1.
1.5 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.6 	Section 1. Minnesota Statutes 2005 Supplement, section 125A.11, subdivision 1, 
1.7 	is amended to read:
1.8 		Subdivision 1.Nonresident tuition rate; other costs. (a) For fiscal year 2006, 
1.9 	when a school district provides instruction and services outside the district of residence, 
1.10 	board and lodging, and any tuition to be paid, shall be paid by the district of residence. 
1.11 	The tuition rate to be charged for any child with a disability, excluding a pupil for whom 
1.12 	tuition is calculated according to section 127A.47, subdivision 7, paragraph (d), must be 
1.13 	the sum of (1) the actual cost of providing special instruction and services to the child 
1.14 	including a proportionate amount for special transportation and unreimbursed building 
1.15 	lease and debt service costs for facilities used primarily for special education, plus (2) 
1.16 	the amount of general education revenue and referendum aid attributable to the pupil, 
1.17 	minus (3) the amount of special education aid for children with a disability received 
1.18 	on behalf of that child, minus (4) if the pupil receives special instruction and services 
1.19 	outside the regular classroom for more than 60 percent of the school day, the amount of 
1.20 	general education revenue and referendum aid, excluding portions attributable to district 
1.21 	and school administration, district support services, operations and maintenance, capital 
1.22 	expenditures, and pupil transportation, attributable to that pupil for the portion of time 
1.23 	the pupil receives instruction in the regular classroom. If the boards involved do not 
1.24 	agree upon the tuition rate, either board may apply to the commissioner to fix the rate. 
2.1 	Notwithstanding chapter 14, the commissioner must then set a date for a hearing or 
2.2 	request a written statement from each board, giving each board at least ten days' notice, 
2.3 	and after the hearing or review of the written statements the commissioner must make an 
2.4 	order fixing the tuition rate, which is binding on both school districts. General education 
2.5 	revenue and referendum aid attributable to a pupil must be calculated using the resident 
2.6 	district's average general education and referendum revenue per adjusted pupil unit.
2.7 	(b) For fiscal year 2007 and later, when a school district provides special instruction 
2.8 	and services for a pupil with a disability as defined in section 125A.02 outside the district 
2.9 	of residence, excluding a pupil for whom an adjustment to special education aid is 
2.10 	calculated according to section 127A.47, subdivision 7, paragraph (e), special education 
2.11 	aid paid to the resident district must be reduced by an amount equal to (1) the actual 
2.12 	cost of providing special instruction and services to the pupil, including a proportionate 
2.13 	amount for special transportation and unreimbursed building lease and debt service costs 
2.14 	for facilities used primarily for special education, plus (2) the amount of general education 
2.15 	revenue and referendum aid attributable to that pupil, minus (3) the amount of special 
2.16 	education aid for children with a disability received on behalf of that child, minus (4) if the 
2.17 	pupil receives special instruction and services outside the regular classroom for more than 
2.18 	60 percent of the school day, the amount of general education revenue and referendum 
2.19 	aid, excluding portions attributable to district and school administration, district support 
2.20 	services, operations and maintenance, capital expenditures, and pupil transportation, 
2.21 	attributable to that pupil for the portion of time the pupil receives instruction in the regular 
2.22 	classroom. General education revenue and referendum aid attributable to a pupil must be 
2.23 	calculated using the resident district's average general education revenue and referendum 
2.24 	aid per adjusted pupil unit. Special education aid paid to the district or cooperative 
2.25 	providing special instruction and services for the pupil must be increased by the amount 
2.26 	of the reduction in the aid paid to the resident district. Amounts paid to cooperatives 
2.27 	under this subdivision and section 127A.47, subdivision 7, shall be recognized and 
2.28 	reported as revenues and expenditures on the resident school district's books of account 
2.29 	under sections 123B.75 and 123B.76. If the resident district's special education aid is 
2.30 	insufficient to make the full adjustment, the remaining adjustment shall be made to other 
2.31 	state aid due to the district.
2.32 	(c) Notwithstanding paragraphs (a) and (b) and section 127A.47, subdivision 7, 
2.33 	paragraphs (d) and (e), a charter school where more than 30 percent of enrolled students 
2.34 	receive special education and related services, an intermediate district, or a special 
2.35 	education cooperative, or a school district that served as the applicant agency for a group 
2.36 	of school districts for federal special education aids for fiscal year 2006 may apply to the 
3.1 	commissioner for authority to charge the resident district an additional amount to recover 
3.2 	any remaining unreimbursed costs of serving pupils with a disability. The application must 
3.3 	include a description of the costs and the calculations used to determine the unreimbursed 
3.4 	portion to be charged to the resident district. Amounts approved by the commissioner 
3.5 	under this paragraph must be included in the tuition billings or aid adjustments under 
3.6 	paragraph (a) or (b), or section 127A.47, subdivision 7, paragraph (d) or (e), as applicable.

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