Subdivision 1.

Special education aid.

(a) new text beginA charter school is eligible for special education
aid if the charter school files an annual plan with its authorizer describing the charter school's
procedure for implementing third party billing under section 125A.21. new text endExcept as provided
in section 124E.23, special education aid, excluding cross subsidy reduction aid under
section 125A.76, subdivision 2e, must be paid to a charter school according to section
125A.76, as though it were a school district.

(b) deleted text beginFor fiscal year 2020 and later,deleted text end The special education aid paid to the charter school
shall be adjusted as follows:

(1) if the charter school does not receive general education revenue on behalf of the
student according to section 124E.20, the aid shall be adjusted as provided in section
125A.11; or

(2) if the charter school receives general education revenue on behalf of the student
according to section 124E.20, the aid shall be adjusted as provided in section 127A.47,
subdivision 7, paragraphs (b) to (e), and if the tuition adjustment is computed under section
127A.47, subdivision 7, paragraph (c), it shall also receive an adjustment equal to deleted text beginfive
percent for fiscal year 2020 ordeleted text end ten percent for fiscal year 2021 and later of the unreimbursed
cost of providing special education and services for the studentnew text begin and the amount in paragraph
(c)new text end.

new text begin (c) A charter school must receive special education tuition adjustment aid equal to the
difference between the charter school's unreimbursed costs without a rate cap and the
district's unreimbursed costs with the rate cap, times the adjustment factor for that year. For
fiscal years 2021 and 2022, the adjustment factor equals 100 percent. For fiscal year 2023,
the adjustment factor equals 75 percent. For fiscal year 2024, the adjustment factor equals
50 percent. For fiscal year 2025 and later, the adjustment factor equals 25 percent.
new text end

Subdivision 1.

Obligation to pay.

new text begin(a) new text endNothing in sections 125A.03 to 125A.24 and
125A.65 relieves an insurer or similar third party from an otherwise valid obligation to pay,
or changes the validity of an obligation to pay, for services rendered to a child with a
disability, and the child's family.

new text begin (b) For purposes of this section, "school district" and "district" mean a school district,
charter school, or cooperative unit defined under section 123A.24, subdivision 2, providing
direct special education services to students.
new text end

new text begin (c) new text endA school district shall pay the nonfederal share of medical assistance services provided
according to section 256B.0625, subdivision 26. Eligible expenditures must not be made
from federal funds or funds used to match other federal funds. Any federal disallowances
are the responsibility of the school district. A school district may pay or reimburse
co-payments, coinsurance, deductibles, and other enrollee cost-sharing amounts, on behalf
of the student or family, in connection with health and related services provided under an
individual educational plan or individualized family service plan.

Subd. 2.

Third-party reimbursement.

(a) deleted text beginBeginning July 1, 2000,deleted text end Districts shall seek
reimbursement from insurers and similar third parties for the cost of services provided by
the district whenever the services provided by the district are otherwise covered by the
child's health coverage. Districts shall request, but may not require, the child's family to
provide information about the child's health coverage when a child with a disability begins
to receive services from the district of a type that may be reimbursable, and shall request,
but may not require, updated information after that as needed.

(b) For children enrolled in medical assistance under chapter 256B or MinnesotaCare
under chapter 256L who have no other health coverage, a district shall provide an initial
and annual written notice to the enrolled child's parent or legal representative of its intent
to seek reimbursement from medical assistance or MinnesotaCare for:

(1) the evaluations required as part of the individualized education program process or
individualized family service plan process; and

(2) health-related services provided by the district according to the individualized
education program or individualized family service plan.

The initial notice must give the child's parent or legal representative the right to request a
copy of the child's education records on the health-related services that the district provided
to the child and disclosed to a third-party payer.

(c) The district shall give the parent or legal representative annual written notice of:

(1) the district's intent to seek reimbursement from medical assistance or MinnesotaCare
for evaluations required as part of the individualized education program process or
individualized family service plan process, and for health-related services provided by the
district according to the individualized education program or individualized family service
plan;

(2) the right of the parent or legal representative to request a copy of all records
concerning individualized education program or individualized family service plan
health-related services disclosed by the district to any third party; and

(3) the right of the parent or legal representative to withdraw consent for disclosure of
a child's records at any time without consequence.

The written notice shall be provided as part of the written notice required by Code of Federal
Regulations, title 34, section 300.504 or 303.520. The district must ensure that the parent
of a child with a disability is given notice, in understandable language, of federal and state
procedural safeguards available to the parent under this paragraph and paragraph (b).

(d) In order to access the private health care coverage of a child who is covered by private
health care coverage in whole or in part, a district must:

(1) obtain annual written informed consent from the parent or legal representative, in
compliance with subdivision 5; and

(2) inform the parent or legal representative that a refusal to permit the district or state
Medicaid agency to access their private health care coverage does not relieve the district of
its responsibility to provide all services necessary to provide free and appropriate public
education at no cost to the parent or legal representative.

(e) If the commissioner of human services obtains federal approval to exempt covered
individualized education program or individualized family service plan health-related
services from the requirement that private health care coverage refuse payment before
medical assistance may be billed, paragraphs (b), (c), and (d) shall also apply to students
with a combination of private health care coverage and health care coverage through medical
assistance or MinnesotaCare.

(f) In the event that Congress or any federal agency or the Minnesota legislature or any
state agency establishes lifetime limits, limits for any health care services, cost-sharing
provisions, or otherwise provides that individualized education program or individualized
family service plan health-related services impact benefits for persons enrolled in medical
assistance or MinnesotaCare, the amendments to this subdivision adopted in 2002 are
repealed on the effective date of any federal or state law or regulation that imposes the
limits. In that event, districts must obtain informed consent consistent with this subdivision
as it existed prior to the 2002 amendments and subdivision 5, before seeking reimbursement
for children enrolled in medical assistance under chapter 256B or MinnesotaCare under
chapter 256L who have no other health care coverage.

Subd. 2e.

Cross subsidy reduction aid.

(a) A school district's annual cross subsidy
reduction aid equals the school district's initial special education cross subsidy for the
previous fiscal year times the cross subsidy aid factor for that fiscal year.

(b) The cross subsidy aid factor equals 2.6 percent for fiscal year 2020 deleted text beginanddeleted text endnew text begin,new text end 6.43 percent
for fiscal year 2021 deleted text beginanddeleted text endnew text begin, 9.33 percent for fiscal year 2022, 12.11 percent for fiscal year
2023, and increases by three percentage points per year for fiscal year 2024 andnew text end later.new text begin The
cross subsidy aid factor must not exceed 30 percent.
new text end