HF 2475

2nd Committee Engrossment - 85th Legislature (2007 - 2008) Posted on 12/22/2009 12:38pm

1.1A bill for an act

1.2relating to education finance; providing funding for prekindergarten through
1.3grade 12 education; authorizing rulemaking; appropriating money;amending
1.4Minnesota Statutes 2006, sections 120B.023, subdivision 2; 120B.131,
1.5subdivision 2; 120B.31, as amended; 120B.35, as amended; 120B.36, as
1.6amended; 120B.362; 122A.21; 123B.02, subdivision 21; 123B.59, subdivision 1;
1.7123B.62; 124D.04, subdivisions 3, 6, 8, 9; 124D.05, by adding a subdivision;
1.8124D.10, subdivision 20; 124D.55; 125A.65, by adding a subdivision; 125A.76,
1.9by adding a subdivision; 126C.10, subdivision 31, by adding a subdivision;
1.10126C.17, subdivision 9; 126C.21, subdivision 1; 126C.51; 126C.52, subdivision
1.112, by adding a subdivision; 126C.53; 126C.55; 127A.45, subdivision 16;
1.12Minnesota Statutes 2007 Supplement, sections 120B.021, subdivision 1;
1.13120B.024; 120B.30; 123B.143, subdivision 1; 124D.531, subdivision 1;
1.14126C.21, subdivision 3; 126C.44; Laws 2007, chapter 146, article 1, section 24,
1.15subdivisions 2, 3, 4, 5, 6, 7, 8; article 2, section 46, subdivisions 2, 3, 4, 6, 9, 13;
1.16article 3, sections 23, subdivision 2; 24, subdivisions 3, 4, 9; article 4, section
1.1716, subdivisions 2, 3, 6, 8; article 5, section 13, subdivisions 2, 3, 4, 5; article 7,
1.18section 4; article 9, section 17, subdivisions 2, 3, 4, 8, 9, 13; Laws 2007, First
1.19Special Session chapter 2, article 1, section 11, subdivisions 1, 2, 6; proposing
1.20coding for new law in Minnesota Statutes, chapters 120B; 121A; 124D; 127A;
1.21145; repealing Minnesota Statutes 2006, sections 121A.67; 125A.16; 125A.19;
1.22125A.20; 125A.57; Laws 2006, chapter 263, article 3, section 16; Laws 2007,
1.23First Special Session chapter 2, article 1, section 11, subdivisions 3, 4.
1.24BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.25ARTICLE 1

1.26K-12 EDUCATION

1.27    Section 1. Minnesota Statutes 2007 Supplement, section 120B.021, subdivision 1,
1.28is amended to read:
1.29    Subdivision 1. Required academic standards. (a) The following subject areas
1.30are required for statewide accountability:
1.31    (1) language arts;
2.1    (2) mathematics;
2.2    (3) science;
2.3    (4) social studies, including history, geography, economics, and government and
2.4citizenship;
2.5    (5) physical education;
2.6    (6) health and physical education, for which locally developed academic standards
2.7apply; and
2.8    (6) (7) the arts, for which statewide or locally developed academic standards apply,
2.9as determined by the school district. Public elementary and middle schools must offer at
2.10least three and require at least two of the following four arts areas: dance; music; theater;
2.11and visual arts. Public high schools must offer at least three and require at least one of the
2.12following five arts areas: media arts; dance; music; theater; and visual arts.
2.13    (b) To satisfy the one-half credit physical education requirement under section
2.14120B.024, paragraph (a), clause (5), the state physical education standard under paragraph
2.15(a) must be consistent with either the six physical education standards developed by the
2.16department's quality teaching network or the six National Physical Education Standards
2.17developed by the National Association for Sport and Physical Education. To satisfy
2.18federal reporting requirements for continued funding under Title VII of the Physical
2.19Education for Progress Act, a school district must notify the department, if applicable, of
2.20its intent to comply with this subdivision.
2.21    (c) The commissioner must submit proposed standards in science and social studies
2.22to the legislature by February 1, 2004.
2.23    (d) For purposes of applicable federal law, the academic standards for language arts,
2.24mathematics, and science apply to all public school students, except the very few students
2.25with extreme cognitive or physical impairments for whom an individualized education
2.26plan team has determined that the required academic standards are inappropriate.
2.27An individualized education plan team that makes this determination must establish
2.28alternative standards.
2.29    (e) A school district, no later than the 2007-2008 school year, must adopt graduation
2.30requirements that meet or exceed state graduation requirements established in law or
2.31rule. A school district that incorporates these state graduation requirements before the
2.322007-2008 school year must provide students who enter the 9th grade in or before
2.33the 2003-2004 school year the opportunity to earn a diploma based on existing locally
2.34established graduation requirements in effect when the students entered the 9th grade.
2.35District efforts to develop, implement, or improve instruction or curriculum as a result
3.1of the provisions of this section must be consistent with sections 120B.10, 120B.11,
3.2and 120B.20.
3.3    (f) The commissioner must include the contributions of Minnesota American Indian
3.4tribes and communities as they relate to the academic standards during the review and
3.5revision of the required academic standards.
3.6EFFECTIVE DATE.This section is effective the day following final enactment
3.7except that paragraph (a), clause (5), applies to students entering the ninth grade in the
3.82009-2010 school year and later.

3.9    Sec. 2. Minnesota Statutes 2006, section 120B.023, subdivision 2, is amended to read:
3.10    Subd. 2. Revisions and reviews required. (a) The commissioner of education must
3.11revise and appropriately embed technology and information literacy standards consistent
3.12with recommendations from school media specialists into the state's academic standards
3.13and graduation requirements and implement a review cycle for state academic standards
3.14and related benchmarks, consistent with this subdivision. During each review cycle, the
3.15commissioner also must examine the alignment of each required academic standard and
3.16related benchmark with the knowledge and skills students need for college readiness and
3.17advanced work in the particular subject area.
3.18    (b) The commissioner in the 2006-2007 school year must revise and align the state's
3.19academic standards and high school graduation requirements in mathematics to require
3.20that students satisfactorily complete the revised mathematics standards, beginning in the
3.212010-2011 school year. Under the revised standards:
3.22    (1) students must satisfactorily complete an algebra I credit by the end of eighth
3.23grade; and
3.24    (2) students scheduled to graduate in the 2014-2015 school year or later must
3.25satisfactorily complete an algebra II credit or its equivalent.
3.26The commissioner also must ensure that the statewide mathematics assessments
3.27administered to students in grades 3 through 8 and 11 beginning in the 2010-2011
3.28school year are aligned with the state academic standards in mathematics. The statewide
3.2911th grade mathematics test administered to students under clause (2) beginning in
3.30the 2013-2014 school year must include algebra II test items that are aligned with
3.31corresponding state academic standards in mathematics. The commissioner must
3.32implement a review of the academic standards and related benchmarks in mathematics
3.33beginning in the 2015-2016 school year.
4.1    (c) The commissioner in the 2007-2008 school year must revise and align the state's
4.2academic standards and high school graduation requirements in the arts to require that
4.3students satisfactorily complete the revised arts standards beginning in the 2010-2011
4.4school year. The commissioner must implement a review of the academic standards and
4.5related benchmarks in arts beginning in the 2016-2017 school year.
4.6    (d) The commissioner in the 2008-2009 school year must revise and align the state's
4.7academic standards and high school graduation requirements in science to require that
4.8students satisfactorily complete the revised science standards, beginning in the 2011-2012
4.9school year. Under the revised standards, students scheduled to graduate in the 2014-2015
4.10school year or later must satisfactorily complete a chemistry or physics credit. The
4.11commissioner must implement a review of the academic standards and related benchmarks
4.12in science beginning in the 2017-2018 school year.
4.13    (e) The commissioner in the 2009-2010 school year must revise and align the state's
4.14academic standards and high school graduation requirements in language arts to require
4.15that students satisfactorily complete the revised language arts standards beginning in the
4.162012-2013 school year. The commissioner must implement a review of the academic
4.17standards and related benchmarks in language arts beginning in the 2018-2019 school year.
4.18    (f) The commissioner in the 2010-2011 school year must revise and align the state's
4.19academic standards and high school graduation requirements in social studies to require
4.20that students satisfactorily complete the revised social studies standards beginning in the
4.212013-2014 school year. The commissioner must implement a review of the academic
4.22standards and related benchmarks in social studies beginning in the 2019-2020 school year.
4.23    (g) The commissioner in the 2018-2019 school year must revise and align the state's
4.24standards and high school graduation requirements in physical education, consistent with
4.25sections 120B.021, subdivision 1, paragraph (a), clause (5), and 120B.024, paragraph (a),
4.26clause (6), to require students to satisfactorily complete the revised physical education
4.27standards beginning in the 2021-2022 school year. The commissioner must implement
4.28a review of the physical education standards and related benchmarks beginning in the
4.292029-2030 school year.
4.30    (h) School districts and charter schools must revise and align local academic
4.31standards and high school graduation requirements in health, physical education, world
4.32languages, and career and technical education to require students to complete the revised
4.33standards beginning in a school year determined by the school district or charter school.
4.34School districts and charter schools must formally establish a periodic review cycle for
4.35the academic standards and related benchmarks in health, physical education, world
4.36languages, and career and technical education.
5.1EFFECTIVE DATE.This section is effective the day following final enactment
5.2and applies to students entering ninth grade in the 2009-2010 school year and later.

5.3    Sec. 3. Minnesota Statutes 2007 Supplement, section 120B.024, is amended to read:
5.4120B.024 GRADUATION REQUIREMENTS; COURSE CREDITS.
5.5    (a) Students beginning 9th grade in the 2004-2005 school year and later must
5.6successfully complete the following high school level course credits for graduation:
5.7    (1) four credits of language arts;
5.8    (2) three credits of mathematics, encompassing at least algebra, geometry, statistics,
5.9and probability sufficient to satisfy the academic standard;
5.10    (3) three credits of science, including at least one credit in biology;
5.11    (4) three and one-half credits of social studies, encompassing at least United
5.12States history, geography, government and citizenship, world history, and economics or
5.13three credits of social studies encompassing at least United States history, geography,
5.14government and citizenship, and world history, and one-half credit of economics taught in
5.15a school's social studies, agriculture education, or business department;
5.16    (5) one credit in the arts; and
5.17    (6) one-half credit of physical education; and
5.18    (7) a minimum of seven 6-1/2 elective course credits.
5.19    A course credit is equivalent to a student successfully completing an academic
5.20year of study or a student mastering the applicable subject matter, as determined by the
5.21local school district.
5.22    (b) An agriculture science course may fulfill a science credit requirement in addition
5.23to the specified science credits in biology and chemistry or physics under paragraph (a),
5.24clause (3).
5.25    (c) A career and technical education course may fulfill a science, mathematics, or
5.26arts credit requirement in addition to the specified science, mathematics, or arts credits
5.27under paragraph (a), clause (2), (3), or (5).
5.28EFFECTIVE DATE.This section is effective the day following final enactment
5.29and applies to students entering ninth grade in the 2009-2010 school year and later.

5.30    Sec. 4. Minnesota Statutes 2006, section 120B.131, subdivision 2, is amended to read:
5.31    Subd. 2. Reimbursement for examination fees. The state may reimburse
5.32college-level examination program (CLEP) fees for a Minnesota public or nonpublic high
5.33school student who has successfully completed one or more college-level courses in high
6.1school in the subject matter of each examination in the following subjects: composition
6.2and literature, mathematics and science, social sciences and history, foreign languages, and
6.3business and humanities. The state may reimburse each student for up to six examination
6.4fees. The commissioner shall establish application procedures and a process and schedule
6.5for fee reimbursements. The commissioner must give priority to reimburse the CLEP
6.6examination fees of students of low-income families.
6.7EFFECTIVE DATE.This section is effective the day following final enactment.

6.8    Sec. 5. [120B.299] DEFINITIONS.
6.9    Subdivision 1. Definitions. The definitions in this section apply to this chapter.
6.10    Subd. 2. Growth. "Growth" compares the difference between a student's
6.11achievement score at two distinct points in time.
6.12    Subd. 3. Value-added. "Value-added" is the amount of achievement a student
6.13demonstrates above an established baseline.
6.14    Subd. 4. Growth-based value-added. "Growth-based value-added" is a
6.15value-added system of assessments that measures the difference between an established
6.16baseline of growth and a student's growth over time.
6.17    Subd. 5. Adequate yearly progress. "Adequate yearly progress" compares the
6.18average achievement of two different groups of students at two different points in time.
6.19    Subd. 6. State growth norm. "State growth norm" is an established statewide
6.20percentile or standard applicable to all students in a particular grade benchmarked to an
6.21established school year. Beginning in the 2008-2009 school year, the state growth norm
6.22is benchmarked to 2006-2007 school year data until the commissioner next changes the
6.23vertically linked scale score. Each time the commissioner changes the vertically linked
6.24scale score, a recognized Minnesota assessment group composed of assessment and
6.25evaluation directors and staff and researchers, in collaboration with the Independent Office
6.26of Educational Accountability under section 120B.31, subdivision 3, must recommend
6.27a new state growth norm that the commissioner must consider when revising standards
6.28under section 120B.023, subdivision 2. For each newly established state growth norm, the
6.29commissioner also must establish criteria for identifying schools and school districts that
6.30demonstrate accelerated growth in order to advance educators' professional development
6.31and to replicate programs that succeed in meeting students' diverse learning needs.
6.32EFFECTIVE DATE.This section is effective the day following final enactment.

7.1    Sec. 6. Minnesota Statutes 2007 Supplement, section 120B.30, is amended to read:
7.2120B.30 STATEWIDE TESTING AND REPORTING SYSTEM.
7.3    Subdivision 1. Statewide testing. (a) The commissioner, with advice from experts
7.4with appropriate technical qualifications and experience and stakeholders, consistent with
7.5subdivision 1a, shall include in the comprehensive assessment system, for each grade
7.6level to be tested, state-constructed tests developed from and aligned with the state's
7.7required academic standards under section 120B.021 and administered annually to all
7.8students in grades 3 through 8 and at the high school level. A state-developed test in a
7.9subject other than writing, developed after the 2002-2003 school year, must include both
7.10machine-scoreable and constructed response questions. The commissioner shall establish
7.11one or more months during which schools shall administer the tests to students each
7.12school year. For students enrolled in grade 8 before the 2005-2006 school year, only
7.13Minnesota basic skills tests in reading, mathematics, and writing shall fulfill students'
7.14basic skills testing requirements for a passing state notation. The passing scores of basic
7.15skills tests in reading and mathematics are the equivalent of 75 percent correct for students
7.16entering grade 9 in 1997 and thereafter, as based on the first uniform test administration of
7.17administered in February 1998.
7.18    (b) For students enrolled in grade 8 in the 2005-2006 school year and later, only the
7.19following options shall fulfill students' state graduation test requirements:
7.20    (1) for reading and mathematics:
7.21    (i) obtaining an achievement level equivalent to or greater than proficient as
7.22determined through a standard setting process on the Minnesota comprehensive
7.23assessments in grade 10 for reading and grade 11 for mathematics or achieving a passing
7.24score as determined through a standard setting process on the graduation-required
7.25assessment for diploma in grade 10 for reading and grade 11 for mathematics or
7.26subsequent retests;
7.27    (ii) achieving a passing score as determined through a standard setting process on the
7.28state-identified language proficiency test in reading and the mathematics test for English
7.29language learners or the graduation-required assessment for diploma equivalent of those
7.30assessments for students designated as English language learners;
7.31    (iii) achieving an individual passing score on the graduation-required assessment
7.32for diploma as determined by appropriate state guidelines for students with an individual
7.33education plan or 504 plan;
7.34    (iv) obtaining achievement level equivalent to or greater than proficient as
7.35determined through a standard setting process on the state-identified alternate assessment
8.1or assessments in grade 10 for reading and grade 11 for mathematics for students with
8.2an individual education plan; or
8.3    (v) achieving an individual passing score on the state-identified alternate assessment
8.4or assessments as determined by appropriate state guidelines for students with an
8.5individual education plan; and
8.6    (2) for writing:
8.7    (i) achieving a passing score on the graduation-required assessment for diploma;
8.8    (ii) achieving a passing score as determined through a standard setting process on
8.9the state-identified language proficiency test in writing for students designated as English
8.10language learners;
8.11    (iii) achieving an individual passing score on the graduation-required assessment
8.12for diploma as determined by appropriate state guidelines for students with an individual
8.13education plan or 504 plan; or
8.14    (iv) achieving an individual passing score on the state-identified alternate assessment
8.15or assessments as determined by appropriate state guidelines for students with an
8.16individual education plan.
8.17     (c) The 3rd through 8th grade and high school level test results shall be available
8.18to districts for diagnostic purposes affecting student learning and district instruction and
8.19curriculum, and for establishing educational accountability. The commissioner must
8.20disseminate to the public the test results upon receiving those results.
8.21     (d) State tests must be constructed and aligned with state academic standards. The
8.22commissioner shall determine the testing process and the order of administration shall be
8.23determined by the commissioner. The statewide results shall be aggregated at the site and
8.24district level, consistent with subdivision 1a.
8.25     (e) In addition to the testing and reporting requirements under this section, the
8.26commissioner shall include the following components in the statewide public reporting
8.27system:
8.28    (1) uniform statewide testing of all students in grades 3 through 8 and at the high
8.29school level that provides appropriate, technically sound accommodations, alternate
8.30assessments, or exemptions consistent with applicable federal law, only with parent or
8.31guardian approval, for those very few students for whom the student's individual education
8.32plan team under sections 125A.05 and 125A.06 determines that the general statewide test
8.33is inappropriate for a student, or for a limited English proficiency student under section
8.34124D.59, subdivision 2 ;
9.1    (2) educational indicators that can be aggregated and compared across school
9.2districts and across time on a statewide basis, including average daily attendance, high
9.3school graduation rates, and high school drop-out rates by age and grade level;
9.4    (3) state results on the American College Test; and
9.5    (4) state results from participation in the National Assessment of Educational
9.6Progress so that the state can benchmark its performance against the nation and other
9.7states, and, where possible, against other countries, and contribute to the national effort
9.8to monitor achievement.
9.9    Subd. 1a. Statewide and local assessments; results. (a) The commissioner must
9.10develop reading, mathematics, and science assessments aligned with state academic
9.11standards that districts and sites must use to monitor student growth toward achieving
9.12those standards. The commissioner must not develop statewide assessments for academic
9.13standards in social studies, health and physical education, and the arts. The commissioner
9.14must require:
9.15    (1) annual reading and mathematics assessments in grades 3 through 8 and at the
9.16high school level for the 2005-2006 school year and later; and
9.17    (2) annual science assessments in one grade in the grades 3 through 5 span, the
9.18grades 6 through 9 8 span, and a life sciences assessment in the grades 10 9 through 12
9.19span for the 2007-2008 school year and later.
9.20    (b) The commissioner must ensure that all statewide tests administered to elementary
9.21and secondary students measure students' academic knowledge and skills and not students'
9.22values, attitudes, and beliefs.
9.23    (c) Reporting of assessment results must:
9.24    (1) provide timely, useful, and understandable information on the performance of
9.25individual students, schools, school districts, and the state;
9.26    (2) include, by no later than the 2008-2009 school year, a growth-based value-added
9.27component that is in addition to a measure for student achievement growth over time
9.28indicator of student achievement under section 120B.35, subdivision 3, paragraph (b); and
9.29    (3)(i) for students enrolled in grade 8 before the 2005-2006 school year, determine
9.30whether students have met the state's basic skills requirements; and
9.31    (ii) for students enrolled in grade 8 in the 2005-2006 school year and later, determine
9.32whether students have met the state's academic standards.
9.33    (d) Consistent with applicable federal law and subdivision 1, paragraph (d), clause
9.34(1), the commissioner must include appropriate, technically sound accommodations or
9.35alternative assessments for the very few students with disabilities for whom statewide
9.36assessments are inappropriate and for students with limited English proficiency.
10.1    (e) A school, school district, and charter school must administer statewide
10.2assessments under this section, as the assessments become available, to evaluate student
10.3progress in achieving the proficiency in the context of the state's grade level academic
10.4standards. If a state assessment is not available, a school, school district, and charter
10.5school must determine locally if a student has met the required academic standards. A
10.6school, school district, or charter school may use a student's performance on a statewide
10.7assessment as one of multiple criteria to determine grade promotion or retention. A
10.8school, school district, or charter school may use a high school student's performance on a
10.9statewide assessment as a percentage of the student's final grade in a course, or place a
10.10student's assessment score on the student's transcript.
10.11    Subd. 2. Department of Education assistance. The Department of Education
10.12shall contract for professional and technical services according to competitive bidding
10.13procedures under chapter 16C for purposes of this section.
10.14    Subd. 3. Reporting. The commissioner shall report test data publicly and to
10.15stakeholders, including the performance achievement levels developed from students'
10.16unweighted test scores in each tested subject and a listing of demographic factors that
10.17strongly correlate with student performance. The commissioner shall also report data that
10.18compares performance results among school sites, school districts, Minnesota and other
10.19states, and Minnesota and other nations. The commissioner shall disseminate to schools
10.20and school districts a more comprehensive report containing testing information that
10.21meets local needs for evaluating instruction and curriculum.
10.22    Subd. 4. Access to tests. The commissioner must adopt and publish a policy
10.23to provide public and parental access for review of basic skills tests, Minnesota
10.24Comprehensive Assessments, or any other such statewide test and assessment. Upon
10.25receiving a written request, the commissioner must make available to parents or guardians
10.26a copy of their student's actual responses to the test questions to be reviewed by the
10.27parent for their review.
10.28EFFECTIVE DATE.This section is effective the day following final enactment.

10.29    Sec. 7. Minnesota Statutes 2006, section 120B.31, as amended by Laws 2007, chapter
10.30146, article 2, section 10, is amended to read:
10.31120B.31 SYSTEM ACCOUNTABILITY AND STATISTICAL
10.32ADJUSTMENTS.
10.33    Subdivision 1. Educational accountability and public reporting. Consistent
10.34with the process direction to adopt a results-oriented graduation rule statewide academic
11.1standards under section 120B.02, the department, in consultation with education and other
11.2system stakeholders, must establish maintain a coordinated and comprehensive system of
11.3educational accountability and public reporting that promotes higher greater academic
11.4achievement, preparation for higher academic education, preparation for the world of
11.5work, citizenship as outlined under sections 120B.021, subdivision 1, clause (4), and
11.6120B.024, paragraph (a), clause (4), and the arts.
11.7    Subd. 2. Statewide testing. Each school year, all school districts shall give a
11.8uniform statewide test to students at specified grades to provide information on the status,
11.9needs and performance of Minnesota students.
11.10    Subd. 3. Educational accountability. (a) The Independent Office of Educational
11.11Accountability, as authorized by Laws 1997, First Special Session chapter 4, article 5,
11.12section 28, subdivision 2, is established, and shall be funded through the Board of Regents
11.13of the University of Minnesota. The office shall advise the education committees of
11.14the legislature and the commissioner of education, at least on a biennial basis, on the
11.15degree to which the statewide educational accountability and reporting system includes a
11.16comprehensive assessment framework that measures school accountability for students
11.17achieving the goals described in the state's results-oriented high school graduation
11.18rule. The office shall determine and annually report to the legislature whether and how
11.19effectively:
11.20    (1) the statewide system of educational accountability utilizes uses multiple
11.21indicators to provide valid and reliable comparative and contextual data on students,
11.22schools, districts, and the state, and if not, recommend ways to improve the accountability
11.23reporting system;
11.24    (2) the commissioner makes statistical adjustments when reporting student data over
11.25time, consistent with clause (4);
11.26    (3) the commissioner uses indicators of student achievement growth a growth-based
11.27value-added indicator of student achievement over time and a value-added assessment
11.28model that estimates the effects of the school and school district on student achievement to
11.29measure school performance, consistent with section 120B.36, subdivision 1 120B.35,
11.30subdivision 3, paragraph (b);
11.31    (4) the commissioner makes data available on students who do not pass one or more
11.32of the state's required GRAD tests and do not receive a diploma as a consequence, and
11.33categorizes these data according to gender, race, eligibility for free or reduced lunch, and
11.34English language proficiency; and
11.35    (5) the commissioner fulfills the requirements under section 127A.095, subdivision 2.
12.1    (b) When the office reviews the statewide educational accountability and reporting
12.2system, it shall also consider:
12.3    (1) the objectivity and neutrality of the state's educational accountability system; and
12.4    (2) the impact of a testing program on school curriculum and student learning.
12.5    Subd. 4. Statistical adjustments; student performance data. In developing
12.6managing policies and assessment processes to hold schools and districts accountable
12.7for high levels of academic standards under section 120B.021, the commissioner shall
12.8aggregate student data over time to report student performance and growth levels
12.9measured at the school, school district, regional, or and statewide level. When collecting
12.10and reporting the performance data, the commissioner shall: (1) acknowledge the impact
12.11of significant demographic factors such as residential instability, the number of single
12.12parent families, parents' level of education, and parents' income level on school outcomes;
12.13and (2) organize and report the data so that state and local policy makers can understand
12.14the educational implications of changes in districts' demographic profiles over time. Any
12.15report the commissioner disseminates containing summary data on student performance
12.16must integrate student performance and the demographic factors that strongly correlate
12.17with that performance.
12.18EFFECTIVE DATE.This section is effective the day following final enactment.

12.19    Sec. 8. Minnesota Statutes 2006, section 120B.35, as amended by Laws 2007, chapter
12.20147, article 8, section 38, is amended to read:
12.21120B.35 STUDENT ACADEMIC ACHIEVEMENT AND PROGRESS
12.22GROWTH.
12.23    Subdivision 1. Adequate yearly progress of schools and students School and
12.24student indicators of growth and achievement. The commissioner must develop
12.25and implement maintain a system for measuring and reporting academic achievement
12.26and individual student progress growth, consistent with the statewide educational
12.27accountability and reporting system. The system components of the system must measure
12.28the adequate yearly progress of schools and the growth of individual students: students'
12.29current achievement in schools under subdivision 2; and individual students' educational
12.30progress growth over time under subdivision 3. The system also must include statewide
12.31measures of student academic achievement growth that identify schools with high levels
12.32of achievement growth, and also schools with low levels of achievement growth that need
12.33improvement. When determining a school's effect, the data must include both statewide
12.34measures of student achievement and, to the extent annual tests are administered,
13.1indicators of achievement growth that take into account a student's prior achievement.
13.2Indicators of achievement and prior achievement must be based on highly reliable
13.3statewide or districtwide assessments. Indicators that take into account a student's prior
13.4achievement must not be used to disregard a school's low achievement or to exclude
13.5a school from a program to improve low achievement levels. The commissioner by
13.6January 15, 2002, must submit a plan for integrating these components to the chairs of
13.7the legislative committees having policy and budgetary responsibilities for elementary
13.8and secondary education.
13.9    Subd. 2. Expectations for federally mandated student academic achievement.
13.10    (a) Each school year, a school district must determine if the student achievement levels
13.11at each school site meet state and local federally mandated expectations. If student
13.12achievement levels at a school site do not meet state and local federally mandated
13.13expectations and the site has not made adequate yearly progress for two consecutive
13.14school years, beginning with the 2001-2002 school year, the district must work with the
13.15school site to adopt a plan to raise student achievement levels to meet state and local
13.16federally mandated expectations. The commissioner of education shall establish student
13.17academic achievement levels to comply with this paragraph.
13.18    (b) School sites identified as not meeting federally mandated expectations must
13.19develop continuous improvement plans in order to meet state and local federally mandated
13.20expectations for student academic achievement. The department, at a district's request,
13.21must assist the district and the school site in developing a plan to improve student
13.22achievement. The plan must include parental involvement components.
13.23    (c) The commissioner must:
13.24    (1) provide assistance to assist school sites and districts identified as not meeting
13.25federally mandated expectations; and
13.26    (2) provide technical assistance to schools that integrate student progress measures
13.27under subdivision 3 in the school continuous improvement plan.
13.28    (d) The commissioner shall establish and maintain a continuous improvement Web
13.29site designed to make data on every school and district available to parents, teachers,
13.30administrators, community members, and the general public.
13.31    Subd. 3. Student progress assessment growth; other state measures. (a)
13.32The state's educational assessment system component measuring individual students'
13.33educational progress must be growth is based, to the extent annual tests are administered,
13.34on indicators of achievement growth that show an individual student's prior achievement.
13.35Indicators of achievement and prior achievement must be are based on highly reliable
13.36statewide or districtwide assessments.
14.1    (b) The commissioner must identify effective models for measuring individual
14.2student progress that enable a school district or school site to perform gains-based
14.3analysis, including evaluating the effects of the teacher, school, and school district on
14.4student achievement over time. At least one model must be a "value-added" assessment
14.5model that reliably estimates those effects for classroom settings where a single teacher
14.6teaches multiple subjects to the same group of students, for team teaching arrangements,
14.7and for other teaching circumstances. use a growth-based value-added system. The
14.8commissioner must apply the state growth norm to students in grades 4 through 8
14.9beginning in the 2008-2009 school year, consistent with section 120B.299, subdivision
14.106, initially benchmarking the state growth norm to 2006-2007 school year data. The
14.11model must allow the user to:
14.12    (1) report student growth at and above the state norm; and
14.13    (2) for all student categories with a cell size of at least 20, report and compare
14.14aggregated and disaggregated state growth data using the nine student categories identified
14.15under the federal 2001 No Child Left Behind Act and two student gender categories of
14.16male and female, respectively. The model must measure the effects that teacher teams
14.17within a grade, teacher teams across an entire grade, the school, and the school district
14.18have on student growth. The model must not compile test results for teacher teams within
14.19a grade or across a grade unless the test results encompass data on three or more teachers.
14.20    (c) If a district has an accountability plan that includes gains-based analysis or
14.21"value-added" assessment, the commissioner shall, to the extent practicable, incorporate
14.22those measures in determining whether the district or school site meets expectations. The
14.23department must coordinate with the district in evaluating school sites and continuous
14.24improvement plans, consistent with best practices. If a district has an accountability
14.25plan that includes other growth-based value-added analysis, the commissioner may, to
14.26the extent practicable and consistent with this section, incorporate those measures in
14.27determining whether the district or school site shows growth, including accelerated growth.
14.28    (d) When reporting student performance under section 120B.36, subdivision 1, the
14.29commissioner annually, beginning July 1, 2011, must report two core measures indicating
14.30the extent to which current high school graduates are being prepared for postsecondary
14.31academic and career opportunities:
14.32    (1) a preparation measure indicating the number and percentage of high school
14.33graduates in the most recent school year who completed course work important to
14.34preparing them for postsecondary academic and career opportunities, consistent with the
14.35core academic subjects required for admission to Minnesota's public four-year colleges
14.36and universities as determined by the Office of Higher Education under chapter 136A; and
15.1    (2) a rigorous coursework measure indicating the number and percentage of high
15.2school graduates in the most recent school year who successfully completed one or more
15.3college-level advanced placement, international baccalaureate, postsecondary enrollment
15.4options including concurrent enrollment, other rigorous courses of study under section
15.5120B.021, subdivision 1a, or industry certification courses or programs.
15.6When reporting the core measures under clauses (1) and (2), the commissioner must also
15.7analyze and report separate categories of information using the nine student categories
15.8identified under the federal 2001 No Child Left Behind Act and two student gender
15.9categories of male and female, respectively.
15.10    (e) When reporting student performance under section 120B.36, subdivision 1, the
15.11commissioner annually, beginning July 1, 2011, must include summary data showing
15.12students' average self-reported sense of school safety, engagement in school, and the
15.13quality of students' relationship with teachers, administrators, and other students. The
15.14commissioner must gather these data consistently from students in grade 4 or 5, in one
15.15grade level in grades 6 through 8, and in one grade level in high school, as determined by
15.16the commissioner in consultation with recognized and qualified experts. All data received,
15.17collected, or created that are used to generate the summary data under this paragraph are
15.18nonpublic data under section 13.02, subdivision 9.
15.19    Subd. 4. Improving schools. Consistent with the requirements of this section, the
15.20commissioner of education must establish a second achievement benchmark to identify
15.21improving schools. The commissioner must recommend to annually report to the public
15.22and the legislature by February 15, 2002, indicators in addition to the achievement
15.23benchmark for identifying improving schools, including an indicator requiring a school to
15.24demonstrate ongoing successful use of best teaching practices best practices learned from
15.25those schools that demonstrate accelerated growth compared to the state growth norm.
15.26    Subd. 5. Improving graduation rates for students with emotional or behavioral
15.27disorders. (a) A district must develop strategies in conjunction with parents of students
15.28with emotional or behavioral disorders and the county board responsible for implementing
15.29sections 245.487 to 245.4889 to keep students with emotional or behavioral disorders in
15.30school, when the district has a drop-out rate for students with an emotional or behavioral
15.31disorder in grades 9 through 12 exceeding 25 percent.
15.32    (b) A district must develop a plan in conjunction with parents of students with
15.33emotional or behavioral disorders and the local mental health authority to increase the
15.34graduation rates of students with emotional or behavioral disorders. A district with a
15.35drop-out rate for children with an emotional or behavioral disturbance in grades 9 through
16.112 that is in the top 25 percent of all districts shall submit a plan for review and oversight
16.2to the commissioner.
16.3EFFECTIVE DATE.Subdivision 3, paragraph (b), applies to students in the
16.42009-2010 school year and later. Subdivision 3, paragraph (d), applies to students in the
16.52010-2011 school year and later. Subdivision 3, paragraph (e), applies to high school
16.6students in the 2009-2010 school year and later, and to students in any grades 4 through 8
16.7in the 2010-2011 school year and later, consistent with the commissioner's grade level
16.8determinations. Subdivision 4 applies in the 2011-2012 school year and later.

16.9    Sec. 9. Minnesota Statutes 2006, section 120B.36, as amended by Laws 2007, chapter
16.10146, article 2, section 11, is amended to read:
16.11120B.36 SCHOOL ACCOUNTABILITY; APPEALS PROCESS.
16.12    Subdivision 1. School performance report cards. (a) The commissioner shall
16.13use objective criteria based on levels of student performance to report at least student
16.14academic performance under section 120B.35, subdivision 2, the percentages of students
16.15at and above the state growth norm under section 120B.35, subdivision 3, paragraph (b),
16.16school safety and student engagement under section 120B.35, subdivision 3, paragraph
16.17(e), rigorous coursework under section 120B.35, subdivision 3, paragraph (d), two
16.18separate student-to-teacher ratios that clearly indicate the definition of teacher consistent
16.19with sections 122A.06 and 122A.15 for purposes of determining these ratios, and staff
16.20characteristics excluding salaries, with a value-added component added no later than
16.21the 2008-2009 school year student enrollment demographics, district mobility, and
16.22extracurricular activities. The report must indicate a school's adequate yearly progress
16.23status, and must not set any designations applicable to high- and low-performing schools
16.24due solely to adequate yearly progress status.
16.25    (b) The commissioner shall develop, annually update, and post on the department
16.26Web site school performance report cards.
16.27    (c) The commissioner must make available the first performance report cards by
16.28November 2003, and during the beginning of each school year thereafter.
16.29    (d) A school or district may appeal its adequate yearly progress status in writing to
16.30the commissioner within 30 days of receiving the notice of its status. The commissioner's
16.31decision to uphold or deny an appeal is final.
16.32    (e) School performance report cards card data are nonpublic data under section
16.3313.02, subdivision 9 , until not later than ten days after the appeal procedure described in
17.1paragraph (d) concludes. The department shall annually post school performance report
17.2cards to its public Web site no later than September 1.
17.3    Subd. 2. Adequate yearly progress data. All data the department receives,
17.4collects, or creates for purposes of determining to determine adequate yearly progress
17.5designations status under Public Law 107-110, section 1116, set state growth norms, and
17.6determine student growth are nonpublic data under section 13.02, subdivision 9, until not
17.7later than ten days after the appeal procedure described in subdivision 1, paragraph (d),
17.8concludes. Districts must provide parents sufficiently detailed summary data to permit
17.9parents to appeal under Public Law 107-110, section 1116(b)(2). The department shall
17.10annually post federally mandated adequate yearly progress data and state student growth
17.11data to its public Web site no later than September 1.
17.12EFFECTIVE DATE.This section is effective the day following final enactment.

17.13    Sec. 10. Minnesota Statutes 2006, section 120B.362, is amended to read:
17.14120B.362 GROWTH-BASED VALUE-ADDED ASSESSMENT PROGRAM.
17.15    (a) The commissioner of education must implement a growth-based value-added
17.16assessment program to assist school districts, public schools, and charter schools in
17.17assessing and reporting individual students' growth in academic achievement under section
17.18120B.30, subdivision 1a . The program must use assessments of individual students'
17.19academic achievement to make longitudinal comparisons of each student's academic
17.20growth over time. School districts, public schools, and charter schools may apply to the
17.21commissioner to participate in the initial trial program using a form and in the manner the
17.22commissioner prescribes. The commissioner must select program participants from urban,
17.23suburban, and rural areas throughout the state.
17.24    (b) The commissioner may issue a request for proposals to contract with an
17.25organization that provides a value-added assessment model that reliably estimates school
17.26and school district effects on students' academic achievement over time. The model the
17.27commissioner selects must accommodate diverse data and must use each student's test
17.28data across grades. Data on individual teachers generated under the model are personnel
17.29data under section 13.43.
17.30    (c) The contract under paragraph (b) must be consistent with the definition of "best
17.31value" under section 16C.02, subdivision 4.
17.32EFFECTIVE DATE.This section is effective the day following final enactment.

18.1    Sec. 11. Minnesota Statutes 2006, section 122A.21, is amended to read:
18.2122A.21 TEACHERS' AND ADMINISTRATORS' LICENSES; FEES.
18.3    Subdivision 1. Licensure applications. Each application for the issuance, renewal,
18.4or extension of a license to teach, including applications for licensure via portfolio under
18.5subdivision 2, must be accompanied by a processing fee of $57. Each application for
18.6issuing, renewing, or extending the license of a school administrator or supervisor must
18.7be accompanied by a processing fee in the amount set by the Board of Teaching. The
18.8processing fee for a teacher's license and for the licenses of supervisory personnel must
18.9be paid to the executive secretary of the appropriate board. The executive secretary of
18.10the board shall deposit the fees with the commissioner of finance. The fees as set by the
18.11board are nonrefundable for applicants not qualifying for a license. However, a fee must
18.12be refunded by the commissioner of finance in any case in which the applicant already
18.13holds a valid unexpired license. The board may waive or reduce fees for applicants who
18.14apply at the same time for more than one license.
18.15    Subd. 2. Licensure via portfolio. (a) A candidate seeking licensure via portfolio
18.16must submit a $75 fee to the Educator Licensing Division at the department to determine
18.17the candidate's eligibility for licensure via portfolio. An eligible candidate may use
18.18licensure via portfolio to obtain an initial licensure or to add a licensure field, consistent
18.19with the applicable Board of Teaching licensure rules.
18.20    (b) A candidate for initial licensure must submit to the Educator Licensing Division
18.21at the department one portfolio demonstrating pedagogical competence and one portfolio
18.22demonstrating content competence.
18.23    (c) A candidate seeking to add a licensure field must submit to the Educator
18.24Licensing Division at the department one portfolio demonstrating content competence.
18.25    (d) A candidate must pay to the executive secretary of the Board of Teaching a
18.26$300 fee for the first portfolio submitted for review and a $200 fee for any portfolio
18.27submitted subsequently. The fees must be paid to the executive secretary of the Board of
18.28Teaching. The revenue generated from the fee must be deposited in an education licensure
18.29portfolio account in the special revenue fund. The fees set by the Board of Teaching are
18.30nonrefundable for applicants not qualifying for a license. The Board of Teaching may
18.31waive or reduce fees for candidates based on financial need.

18.32    Sec. 12. [121A.215] LOCAL SCHOOL DISTRICT WELLNESS POLICIES;
18.33WEB SITE.
18.34    When available, a school district must post its current local school wellness policy
18.35on its Web site.
19.1EFFECTIVE DATE.This section is effective the day following final enactment.

19.2    Sec. 13. Minnesota Statutes 2006, section 123B.02, subdivision 21, is amended to read:
19.3    Subd. 21. Wind energy conversion system. The board, or more than one board
19.4acting jointly under the authority granted by section 471.59, may construct, acquire, own
19.5in whole or in part, operate, and sell and retain and spend the payment received from
19.6selling energy from a wind energy conversion system, as defined in section 216C.06,
19.7subdivision 19 . The board's share of the installed capacity of the wind energy conversion
19.8systems authorized by this subdivision must not exceed 3.3 megawatts of nameplate
19.9capacity. A board owning, operating, or selling energy from a wind energy conversion
19.10system must integrate information about wind energy conversion systems in its educational
19.11programming. The board, or more than one board acting jointly under the authority
19.12granted by section 471.59, may be a limited partner in a partnership, a member of a limited
19.13liability company, or a shareholder in a corporation, established for the sole purpose of
19.14constructing, acquiring, owning in whole or in part, financing, or operating a wind energy
19.15conversion system for the benefit of the district or districts in accordance with this section.
19.16EFFECTIVE DATE.This section is effective the day following final enactment.

19.17    Sec. 14. Minnesota Statutes 2007 Supplement, section 123B.143, subdivision 1,
19.18is amended to read:
19.19    Subdivision 1. Contract; duties. All districts maintaining a classified secondary
19.20school must employ a superintendent who shall be an ex officio nonvoting member of the
19.21school board. The authority for selection and employment of a superintendent must be
19.22vested in the board in all cases. An individual employed by a board as a superintendent
19.23shall have an initial employment contract for a period of time no longer than three years
19.24from the date of employment. Any subsequent employment contract must not exceed a
19.25period of three years. A board, at its discretion, may or may not renew an employment
19.26contract. A board must not, by action or inaction, extend the duration of an existing
19.27employment contract. Beginning 365 days prior to the expiration date of an existing
19.28employment contract, a board may negotiate and enter into a subsequent employment
19.29contract to take effect upon the expiration of the existing contract. A subsequent contract
19.30must be contingent upon the employee completing the terms of an existing contract. If a
19.31contract between a board and a superintendent is terminated prior to the date specified in
19.32the contract, the board may not enter into another superintendent contract with that same
19.33individual that has a term that extends beyond the date specified in the terminated contract.
19.34A board may terminate a superintendent during the term of an employment contract for any
20.1of the grounds specified in section 122A.40, subdivision 9 or 13. A superintendent shall
20.2not rely upon an employment contract with a board to assert any other continuing contract
20.3rights in the position of superintendent under section 122A.40. Notwithstanding the
20.4provisions of sections 122A.40, subdivision 10 or 11, 123A.32, 123A.75, or any other law
20.5to the contrary, no individual shall have a right to employment as a superintendent based
20.6on order of employment in any district. If two or more districts enter into an agreement for
20.7the purchase or sharing of the services of a superintendent, the contracting districts have
20.8the absolute right to select one of the individuals employed to serve as superintendent
20.9in one of the contracting districts and no individual has a right to employment as the
20.10superintendent to provide all or part of the services based on order of employment in a
20.11contracting district. The superintendent of a district shall perform the following:
20.12    (1) visit and supervise the schools in the district, report and make recommendations
20.13about their condition when advisable or on request by the board;
20.14    (2) recommend to the board employment and dismissal of teachers;
20.15    (3) superintend school grading practices and examinations for promotions;
20.16    (4) make reports required by the commissioner; and
20.17    (5) by January 10, submit an annual report to the commissioner in a manner
20.18prescribed by the commissioner, in consultation with school districts, identifying the
20.19expenditures that the district requires to ensure an 80 percent student passage rate on
20.20the MCA-IIs taken in the eighth grade, identifying the highest student passage rate the
20.21district expects it will be able to attain on the MCA-IIs by grade 12, and the amount of
20.22expenditures that the district requires to attain the targeted student passage rate; and
20.23    (6) perform other duties prescribed by the board.
20.24EFFECTIVE DATE.This section is effective the day following final enactment.

20.25    Sec. 15. Minnesota Statutes 2006, section 123B.59, subdivision 1, is amended to read:
20.26    Subdivision 1. To qualify. (a) An independent or special school district qualifies to
20.27participate in the alternative facilities bonding and levy program if the district has:
20.28    (1) more than 66 students per grade;
20.29    (2) over 1,850,000 square feet of space and the average age of building space is 15
20.30years or older or over 1,500,000 square feet and the average age of building space is
20.3135 years or older;
20.32    (3) insufficient funds from projected health and safety revenue and capital facilities
20.33revenue to meet the requirements for deferred maintenance, to make accessibility
20.34improvements, or to make fire, safety, or health repairs; and
20.35    (4) a ten-year facility plan approved by the commissioner according to subdivision 2.
21.1    (b) An independent or special school district not eligible to participate in the
21.2alternative facilities bonding and levy program under paragraph (a) qualifies for limited
21.3participation in the program if the district has:
21.4    (1) one or more health and safety projects with an estimated cost of $500,000 or
21.5more per site that would qualify for health and safety revenue except for the project size
21.6limitation in section 123B.57, subdivision 1, paragraph (b); and
21.7    (2) insufficient funds from capital facilities revenue to fund those projects.
21.8    (c) Notwithstanding the square footage limitation in paragraph (a), clause (2),
21.9a school district that qualified for eligibility under paragraph (a) as of July 1, 2007,
21.10remains eligible for funding under this section as long as the district continues to meet
21.11the requirements of paragraph (a), clauses (1), (3), and (4).
21.12EFFECTIVE DATE.This section is effective the day following final enactment.

21.13    Sec. 16. Minnesota Statutes 2006, section 123B.62, is amended to read:
21.14123B.62 BONDS FOR CERTAIN CAPITAL FACILITIES.
21.15    (a) In addition to other bonding authority, with approval of the commissioner, a
21.16district may issue general obligation bonds for certain capital projects under this section.
21.17The bonds must be used only to make capital improvements including:
21.18    (1) under section 126C.10, subdivision 14, total operating capital revenue uses
21.19specified in clauses (4), (6), (7), (8), (9), and (10);
21.20    (2) the cost of energy modifications;
21.21    (3) improving disability accessibility to school buildings; and
21.22    (4) bringing school buildings into compliance with life and safety codes and fire
21.23codes.
21.24    (b) Before a district issues bonds under this subdivision, it must publish notice
21.25of the intended projects, the amount of the bond issue, and the total amount of district
21.26indebtedness.
21.27    (c) A bond issue tentatively authorized by the board under this subdivision becomes
21.28finally authorized unless a petition signed by more than 15 percent of the registered voters
21.29of the district is filed with the school board within 30 days of the board's adoption of a
21.30resolution stating the board's intention to issue bonds. The percentage is to be determined
21.31with reference to the number of registered voters in the district on the last day before the
21.32petition is filed with the board. The petition must call for a referendum on the question of
21.33whether to issue the bonds for the projects under this section. The approval of 50 percent
22.1plus one of those voting on the question is required to pass a referendum authorized
22.2by this section.
22.3    (d) The bonds must be paid off within ten 15 years of issuance. The bonds must be
22.4issued in compliance with chapter 475, except as otherwise provided in this section. A tax
22.5levy must be made for the payment of principal and interest on the bonds in accordance
22.6with section 475.61. The sum of the tax levies under this section and section 123B.61 for
22.7each year must not exceed the limit specified in section 123B.61. The levy for each year
22.8must be reduced as provided in section 123B.61. A district using an excess amount in the
22.9debt redemption fund to retire the bonds shall report the amount used for this purpose to
22.10the commissioner by July 15 of the following fiscal year. A district having an outstanding
22.11capital loan under section 126C.69 or an outstanding debt service loan under section
22.12126C.68 must not use an excess amount in the debt redemption fund to retire the bonds.
22.13    (e) Notwithstanding paragraph (d), bonds issued by a district within the first
22.14five years following voter approval of a combination according to section 123A.37,
22.15subdivision 2 , must be paid off within 20 years of issuance. All the other provisions and
22.16limitation of paragraph (d) apply.
22.17EFFECTIVE DATE.This section is effective the day following final enactment.

22.18    Sec. 17. Minnesota Statutes 2006, section 124D.04, subdivision 3, is amended to read:
22.19    Subd. 3. Pupils in adjoining states. Except as provided under an agreement with
22.20an adjoining state under section 124D.041, a non-Minnesota pupil who resides in an
22.21adjoining state in a district that borders Minnesota may enroll in a Minnesota district if
22.22either the board of the district in which the pupil resides or state in which the pupil resides
22.23pays tuition to the district in which the pupil is enrolled.

22.24    Sec. 18. Minnesota Statutes 2006, section 124D.04, subdivision 6, is amended to read:
22.25    Subd. 6. Tuition payments. (a) In each odd-numbered year, before March 1, the
22.26commissioner must agree to rates of tuition for Minnesota elementary and secondary
22.27pupils attending in other states for the next two fiscal years when the other state agrees to
22.28negotiate tuition rates. The commissioner must negotiate equal, reciprocal rates with the
22.29designated authority in each state for pupils who reside in an adjoining state and enroll in
22.30a Minnesota district. The rates must be at least equal to the tuition specified in section
22.31124D.05, subdivision 1 . If the other state does not agree to negotiate a general tuition rate,
22.32a Minnesota school district may negotiate a tuition rate with the school district in the other
22.33state that sends a pupil to or receives a pupil from the Minnesota school district. The
22.34tuition rate for a pupil with a disability must be equal to the actual cost of instruction and
23.1services provided. The resident district of a Minnesota pupil attending in another state
23.2under this section must pay the amount of tuition agreed upon in this section to the district
23.3of attendance, prorated on the basis of the proportion of the school year attended.
23.4    (b) Notwithstanding paragraph (a) and subdivision 9, if an agreement is reached
23.5between the state of Minnesota and an adjoining state pursuant to section 124D.041,
23.6the provisions of section 124D.041 and the agreement shall apply to all enrollment
23.7transfers between Minnesota and the adjoining state, and provisions of paragraph (a)
23.8and subdivision 9 shall not apply.

23.9    Sec. 19. Minnesota Statutes 2006, section 124D.04, subdivision 8, is amended to read:
23.10    Subd. 8. Effective if reciprocal. This section is effective with respect to South
23.11Dakota upon enactment of provisions by South Dakota that the commissioner determines
23.12are essentially similar to the provisions for Minnesota pupils in this section. This section
23.13is effective with respect to any other bordering state upon enactment of provisions by the
23.14bordering state that the commissioner determines are essentially similar to the provisions
23.15for Minnesota pupils in this section.

23.16    Sec. 20. Minnesota Statutes 2006, section 124D.04, subdivision 9, is amended to read:
23.17    Subd. 9. Appeal to the commissioner. If a Minnesota school district cannot agree
23.18with an adjoining state on a tuition rate for a Minnesota student attending school in that
23.19state and that state has met the requirements in subdivision 8, then the student's parent or
23.20guardian may request that the commissioner agree on set a tuition rate for the student. The
23.21Minnesota district must pay the amount of tuition the commissioner agrees upon sets.

23.22    Sec. 21. [124D.041] RECIPROCITY WITH ADJOINING STATES.
23.23    Subdivision 1. Agreements. (a) The commissioner may enter into an agreement
23.24with the designated authority from an adjoining state to establish an enrollment options
23.25program between Minnesota and the adjoining state. Any agreement entered into pursuant
23.26to this section must specify the following:
23.27    (1) for students who are not residents of Minnesota, the enrollment options program
23.28applies only to a student whose resident school district borders Minnesota;
23.29    (2) the commissioner must negotiate equal, reciprocal rates with the designated
23.30authority from the adjoining state;
23.31    (3) if the adjoining state sends more students to Minnesota than Minnesota sends to
23.32the adjoining state, the adjoining state must pay the state of Minnesota the rate agreed
23.33upon under clause (2) for the excess number of students sent to Minnesota;
24.1    (4) if Minnesota sends more students to the adjoining state than the adjoining state
24.2sends to Minnesota, the state of Minnesota will pay the adjoining state the rate agreed
24.3upon under clause (2) for the excess number of students sent to the adjoining state;
24.4    (5) the application procedures for the enrollment options program between
24.5Minnesota and the adjoining state;
24.6    (6) the reasons for which an application for the enrollment options program between
24.7Minnesota and the adjoining may be denied; and
24.8    (7) that a Minnesota school district is not responsible for transportation for any
24.9resident student attending school in an adjoining state under the provisions of this section.
24.10A Minnesota school district may, at its discretion, provide transportation services for
24.11such a student.
24.12    (b) Any agreement entered into pursuant to this section may specify additional terms
24.13relating to any student in need of special education and related services pursuant to chapter
24.14125A. Any additional terms must apply equally to both states.
24.15    Subd. 2. Pupil accounting. (a) Any student from an adjoining state enrolled in
24.16Minnesota pursuant to this section is included in the receiving school district's average
24.17daily membership and pupil units according to section 126C.05 as if the student were
24.18a resident of another Minnesota school district attending the receiving school district
24.19under section 124D.03.
24.20    (b) Any Minnesota resident student enrolled in an adjoining state pursuant to this
24.21section is included in the resident school district's average daily membership and pupil
24.22units according to section 126C.05 as if the student were a resident of the district attending
24.23another Minnesota school district under section 124D.03.
24.24    Subd. 3. Procedures. (a) The Department of Education must establish procedures
24.25relating to the application process, the collection or payment of funds under the provisions
24.26of any agreement established pursuant to this section, and the collection of data necessary
24.27to implement any agreement established pursuant to this section.
24.28    (b) Notwithstanding sections 124D.04 and 124D.05, if an agreement is established
24.29between Minnesota and an adjoining state pursuant to this section, the provisions of this
24.30section and the agreement shall apply to all enrollment transfers between Minnesota and
24.31the adjoining state, and provisions of sections 124D.04 and 124D.05 to the contrary,
24.32including provisions relating to tuition payments, shall not apply.
24.33    (c) Notwithstanding paragraph (a), any payments to adjoining states under this
24.34section shall be made according to section 127A.45, subdivision 16.
24.35    (d) Notwithstanding paragraph (b), sections 124D.04, subdivision 6, paragraph (b),
24.36and 124D.05, subdivision 2a, the provisions of this section and the agreement shall not
25.1apply to enrollment transfers between Minnesota and a school district in an adjoining state
25.2enrolling fewer than 150 pupils that is exempted from participation in the program under
25.3the laws of the adjoining state.

25.4    Sec. 22. Minnesota Statutes 2006, section 124D.05, is amended by adding a
25.5subdivision to read:
25.6    Subd. 2a. Exception. Notwithstanding subdivisions 1 and 2, if an agreement
25.7is reached between the state of Minnesota and an adjoining state pursuant to section
25.8124D.041, the provisions of section 124D.041 and the agreement shall apply to all
25.9enrollment transfers between Minnesota and the adjoining state, and provisions of
25.10subdivisions 1 and 2 to the contrary, including provisions relating to tuition payments,
25.11shall not apply.

25.12    Sec. 23. Minnesota Statutes 2006, section 124D.10, subdivision 20, is amended to read:
25.13    Subd. 20. Leave to teach in a charter school. If a teacher employed by a district
25.14makes a written request for an extended leave of absence to teach at a charter school,
25.15the district must grant the leave. The district must grant a leave not to exceed a total of
25.16five years. Any request to extend the leave shall be granted only at the discretion of the
25.17school board. The district may require that the request for a leave or extension of leave
25.18be made up to 90 days before the teacher would otherwise have to report for duty before
25.19February 1 in the school year preceding the school year in which the teacher wishes to
25.20return, or before February 1 of the calendar year in which the teacher's leave is scheduled
25.21to terminate. Except as otherwise provided in this subdivision and except for section
25.22122A.46, subdivision 7 , the leave is governed by section 122A.46, including, but not
25.23limited to, reinstatement, notice of intention to return, seniority, salary, and insurance.
25.24    During a leave, the teacher may continue to aggregate benefits and credits in the
25.25Teachers' Retirement Association account by paying both the employer and employee
25.26contributions based upon the annual salary of the teacher for the last full pay period before
25.27the leave began. The retirement association may impose reasonable requirements to
25.28efficiently administer this subdivision.
25.29EFFECTIVE DATE.This section is effective for the 2008-2009 school year and
25.30later.

25.31    Sec. 24. Minnesota Statutes 2007 Supplement, section 124D.531, subdivision 1,
25.32is amended to read:
26.1    Subdivision 1. State total adult basic education aid. (a) The state total adult basic
26.2education aid for fiscal year 2005 is $36,509,000. The state total adult basic education
26.3aid for fiscal year 2006 equals $36,587,000 plus any amount that is not paid for during
26.4the previous fiscal year, as a result of adjustments under subdivision 4, paragraph (a), or
26.5section 124D.52, subdivision 3. The state total adult basic education aid for fiscal year
26.62007 equals $37,673,000 plus any amount that is not paid for during the previous fiscal
26.7year, as a result of adjustments under subdivision 4, paragraph (a), or section 124D.52,
26.8subdivision 3 . The state total adult basic education aid for fiscal year 2008 equals
26.9$40,650,000, plus any amount that is not paid during the previous fiscal year as a result of
26.10adjustments under subdivision 4, paragraph (a), or section 124D.52, subdivision 3. The
26.11state total adult basic education aid for later fiscal years equals:
26.12    (1) the state total adult basic education aid for the preceding fiscal year plus any
26.13amount that is not paid for during the previous fiscal year, as a result of adjustments under
26.14subdivision 4, paragraph (a), or section 124D.52, subdivision 3; times
26.15    (2) the lesser of:
26.16    (i) 1.03; or
26.17    (ii) the greater of 1.00 or the ratio of the state total contact hours in the first prior
26.18program year to the state total contact hours in the second prior program year the average
26.19growth in state total contact hours over the prior ten program years.
26.20    Beginning in fiscal year 2002, two percent of the state total adult basic education
26.21aid must be set aside for adult basic education supplemental service grants under section
26.22124D.522 .
26.23    (b) The state total adult basic education aid, excluding basic population aid, equals
26.24the difference between the amount computed in paragraph (a), and the state total basic
26.25population aid under subdivision 2.

26.26    Sec. 25. Minnesota Statutes 2006, section 124D.55, is amended to read:
26.27124D.55 GENERAL EDUCATION DEVELOPMENT (GED) TEST FEES.
26.28    The commissioner shall pay 60 percent of the fee that is charged to an eligible
26.29individual for the full battery of a general education development (GED) test, but not
26.30more than $20 $40 for an eligible individual.

26.31    Sec. 26. Minnesota Statutes 2006, section 125A.65, is amended by adding a
26.32subdivision to read:
26.33    Subd. 11. Third-party reimbursement. The Minnesota State Academies must seek
26.34reimbursement under section 125A.21 from third parties for the cost of services provided
27.1by the Minnesota State Academies whenever the services provided are otherwise covered
27.2by a child's public or private health plan.
27.3EFFECTIVE DATE.This section is effective the day following final enactment
27.4for revenue in fiscal years 2008 and later.

27.5    Sec. 27. Minnesota Statutes 2006, section 125A.76, is amended by adding a
27.6subdivision to read:
27.7    Subd. 4a. Adjustments for tuition reciprocity with adjoining states. (a) If an
27.8agreement is reached between the state of Minnesota and an adjoining state pursuant to
27.9section 124D.041 that requires a special education tuition payment from the state of
27.10Minnesota to the adjoining state, the tuition payment shall be made from the special
27.11education aid appropriation for that year, and the state total special education aid under
27.12subdivision 4 shall be reduced by the amount of the payment.
27.13    (b) If an agreement is reached between the state of Minnesota and an adjoining state
27.14pursuant to section 124D.041 that requires a special education tuition payment from
27.15an adjoining state to the state of Minnesota, the special education aid appropriation for
27.16that year and the state total special education aid under subdivision 4 shall be increased
27.17by the amount of the payment.
27.18    (c) If an agreement is reached between the state of Minnesota and an adjoining state
27.19pursuant to section 124D.041 that requires special education tuition payments to be made
27.20between the two states and not between districts in the two states, the special education aid
27.21for a Minnesota school district serving a student with a disability from the adjoining state
27.22shall be calculated according to section 127A.47, subdivision 7, except that no reduction
27.23shall be made in the special education aid paid to the resident district.

27.24    Sec. 28. Minnesota Statutes 2006, section 126C.10, subdivision 31, is amended to read:
27.25    Subd. 31. Transition revenue. (a) A district's transition allowance equals the
27.26greater of zero or the product of the ratio of the number of adjusted marginal cost pupil
27.27units the district would have counted for fiscal year 2004 under Minnesota Statutes 2002
27.28to the district's adjusted marginal cost pupil units for fiscal year 2004, times the difference
27.29between: (1) the lesser of the district's general education revenue per adjusted marginal
27.30cost pupil unit for fiscal year 2003 or the amount of general education revenue the district
27.31would have received per adjusted marginal cost pupil unit for fiscal year 2004 according
27.32to Minnesota Statutes 2002, and (2) the district's general education revenue for fiscal year
27.332004 excluding transition revenue divided by the number of adjusted marginal cost pupil
27.34units the district would have counted for fiscal year 2004 under Minnesota Statutes 2002.
28.1    (b) A district's transition revenue for fiscal year years 2006 and later through 2009
28.2equals the sum of the product of the district's transition allowance times the district's
28.3adjusted marginal cost pupil units plus the district's transition for prekindergarten revenue
28.4under subdivision 31a.
28.5    (c) A district's transition revenue for fiscal year 2010 and later equals the sum of
28.6the product of the district's transition allowance times the district's adjusted marginal cost
28.7pupil units plus the district's transition for prekindergarten revenue under subdivision 31a
28.8plus the district's transition for tuition reciprocity revenue under subdivision 31c.

28.9    Sec. 29. Minnesota Statutes 2006, section 126C.10, is amended by adding a
28.10subdivision to read:
28.11    Subd. 31c. Transition for tuition reciprocity revenue. For the first year that a
28.12tuition reciprocity agreement with an adjoining state is in effect under section 124D.041
28.13and later, a school district's transition for tuition reciprocity revenue equals the greater of
28.14zero or the difference between the sum of the general education revenue and net tuition
28.15revenue the district would have received for pupils enrolled under section 124D.041 for
28.16the first year the agreement is in effect if the agreement had not been in effect, and the
28.17sum of the district's general education revenue and net tuition revenue for the first year
28.18the agreement is in effect.

28.19    Sec. 30. Minnesota Statutes 2006, section 126C.17, subdivision 9, is amended to read:
28.20    Subd. 9. Referendum revenue. (a) The revenue authorized by section 126C.10,
28.21subdivision 1 , may be increased in the amount approved by the voters of the district at a
28.22referendum called for the purpose. The referendum may be called by the board or shall be
28.23called by the board upon written petition of qualified voters of the district. The referendum
28.24must be conducted one or two calendar years before the increased levy authority, if
28.25approved, first becomes payable. Only one election to approve an increase may be held
28.26in a calendar year. Unless the referendum is conducted by mail under paragraph (g), the
28.27referendum must be held on the first Tuesday after the first Monday in November. The
28.28ballot must state the maximum amount of the increased revenue per resident marginal cost
28.29pupil unit. The ballot may state a schedule, determined by the board, of increased revenue
28.30per resident marginal cost pupil unit that differs from year to year over the number of
28.31years for which the increased revenue is authorized or may state that the amount shall
28.32increase annually by the rate of inflation. For this purpose, the rate of inflation shall be
28.33the annual inflationary increase calculated under subdivision 2, paragraph (b). The ballot
28.34may state that existing referendum levy authority is expiring. In this case, the ballot may
29.1also compare the proposed levy authority to the existing expiring levy authority, and
29.2express the proposed increase as the amount, if any, over the expiring referendum levy
29.3authority. The ballot must designate the specific number of years, not to exceed ten, for
29.4which the referendum authorization applies. The ballot, including a ballot on the question
29.5to revoke or reduce the increased revenue amount under paragraph (c), must abbreviate
29.6the term "per resident marginal cost pupil unit" as "per pupil." The notice required under
29.7section 275.60 may be modified to read, in cases of renewing existing levies at the same
29.8amount per pupil as in the previous year:
29.9"BY VOTING "YES" ON THIS BALLOT QUESTION, YOU MAY BE VOTING
29.10FOR A PROPERTY TAX INCREASE ARE RENEWING AN EXISTING
29.11PROPERTY TAX REFERENDUM. YOU ARE NOT CHANGING YOUR
29.12OPERATING REFERENDUM AMOUNT PER PUPIL FROM ITS LEVEL IN
29.13THE PREVIOUS YEAR."
29.14    The ballot may contain a textual portion with the information required in this
29.15subdivision and a question stating substantially the following:
29.16    "Shall the increase in the revenue proposed by (petition to) the board of .........,
29.17School District No. .., be approved?"
29.18    If approved, an amount equal to the approved revenue per resident marginal cost
29.19pupil unit times the resident marginal cost pupil units for the school year beginning in
29.20the year after the levy is certified shall be authorized for certification for the number of
29.21years approved, if applicable, or until revoked or reduced by the voters of the district at a
29.22subsequent referendum.
29.23    (b) The board must prepare and deliver by first class mail at least 15 days but no more
29.24than 30 days before the day of the referendum to each taxpayer a notice of the referendum
29.25and the proposed revenue increase. The board need not mail more than one notice to any
29.26taxpayer. For the purpose of giving mailed notice under this subdivision, owners must be
29.27those shown to be owners on the records of the county auditor or, in any county where
29.28tax statements are mailed by the county treasurer, on the records of the county treasurer.
29.29Every property owner whose name does not appear on the records of the county auditor
29.30or the county treasurer is deemed to have waived this mailed notice unless the owner
29.31has requested in writing that the county auditor or county treasurer, as the case may be,
29.32include the name on the records for this purpose. The notice must project the anticipated
29.33amount of tax increase in annual dollars for typical residential homesteads, agricultural
29.34homesteads, apartments, and commercial-industrial property within the school district.
29.35    The notice for a referendum may state that an existing referendum levy is expiring
29.36and project the anticipated amount of increase over the existing referendum levy in
30.1the first year, if any, in annual dollars for typical residential homesteads, agricultural
30.2homesteads, apartments, and commercial-industrial property within the district.
30.3    The notice must include the following statement: "Passage of this referendum will
30.4result in an increase in your property taxes." However, in cases of renewing existing
30.5levies, the notice may include the following statement: "Passage of this referendum may
30.6result in an increase in your property taxes." renews an existing operating referendum at
30.7the same amount per pupil as in the previous year."
30.8    (c) A referendum on the question of revoking or reducing the increased revenue
30.9amount authorized pursuant to paragraph (a) may be called by the board and shall be called
30.10by the board upon the written petition of qualified voters of the district. A referendum to
30.11revoke or reduce the revenue amount must state the amount per resident marginal cost
30.12pupil unit by which the authority is to be reduced. Revenue authority approved by the
30.13voters of the district pursuant to paragraph (a) must be available to the school district at
30.14least once before it is subject to a referendum on its revocation or reduction for subsequent
30.15years. Only one revocation or reduction referendum may be held to revoke or reduce
30.16referendum revenue for any specific year and for years thereafter.
30.17    (d) A petition authorized by paragraph (a) or (c) is effective if signed by a number of
30.18qualified voters in excess of 15 percent of the registered voters of the district on the day
30.19the petition is filed with the board. A referendum invoked by petition must be held on the
30.20date specified in paragraph (a).
30.21    (e) The approval of 50 percent plus one of those voting on the question is required to
30.22pass a referendum authorized by this subdivision.
30.23    (f) At least 15 days before the day of the referendum, the district must submit a
30.24copy of the notice required under paragraph (b) to the commissioner and to the county
30.25auditor of each county in which the district is located. Within 15 days after the results
30.26of the referendum have been certified by the board, or in the case of a recount, the
30.27certification of the results of the recount by the canvassing board, the district must notify
30.28the commissioner of the results of the referendum.
30.29EFFECTIVE DATE.This section is effective for elections conducted on or after
30.30July 1, 2008.

30.31    Sec. 31. Minnesota Statutes 2006, section 126C.21, subdivision 1, is amended to read:
30.32    Subdivision 1. Permanent school fund. The An amount of money equal to $36
30.33times the district's pupils in average daily membership received by a district as income
30.34from the permanent school fund for any year must be deducted from the general education
30.35aid earned by the district for the same year or from aid earned from other state sources.
31.1EFFECTIVE DATE.This section is effective for revenue for fiscal year 2010.

31.2    Sec. 32. Minnesota Statutes 2007 Supplement, section 126C.21, subdivision 3, is
31.3amended to read:
31.4    Subd. 3. County apportionment deduction. Each year the amount of money
31.5apportioned to a district for that year pursuant to sections section 127A.34, subdivision 2,
31.6and 272.029, subdivision 6, must be deducted from the general education aid earned by
31.7that district for the same year or from aid earned from other state sources.
31.8EFFECTIVE DATE.This section is effective for revenue for fiscal year 2009.

31.9    Sec. 33. Minnesota Statutes 2007 Supplement, section 126C.44, is amended to read:
31.10126C.44 SAFE SCHOOLS LEVY.
31.11    (a) Each district may make a levy on all taxable property located within the district
31.12for the purposes specified in this section. The maximum amount which may be levied
31.13for all costs under this section shall be equal to $30 multiplied by the district's adjusted
31.14marginal cost pupil units for the school year. The proceeds of the levy must be reserved and
31.15used for directly funding the following purposes or for reimbursing the cities and counties
31.16who contract with the district for the following purposes: (1) to pay the costs incurred for
31.17the salaries, benefits, and transportation costs of peace officers and sheriffs for liaison in
31.18services in the district's schools; (2) to pay the costs for a drug abuse prevention program
31.19as defined in section 609.101, subdivision 3, paragraph (e), in the elementary schools;
31.20(3) to pay the costs for a gang resistance education training curriculum in the district's
31.21schools; (4) to pay the costs for security in the district's schools and on school property; (5)
31.22to pay the costs for other crime prevention, drug abuse, student and staff safety, voluntary
31.23opt-in suicide prevention tools, and violence prevention measures taken by the school
31.24district; or (6) to pay costs for licensed school counselors, licensed school nurses, licensed
31.25school social workers, licensed school psychologists, and licensed alcohol and chemical
31.26dependency counselors to help provide early responses to problems. For expenditures
31.27under clause (1), the district must initially attempt to contract for services to be provided
31.28by peace officers or sheriffs with the police department of each city or the sheriff's
31.29department of the county within the district containing the school receiving the services. If
31.30a local police department or a county sheriff's department does not wish to provide the
31.31necessary services, the district may contract for these services with any other police or
31.32sheriff's department located entirely or partially within the school district's boundaries.
32.1    (b) A school district that is a member of an intermediate school district may
32.2include in its authority under this section the costs associated with safe schools activities
32.3authorized under paragraph (a) for intermediate school district programs. This authority
32.4must not exceed $10 times the adjusted marginal cost pupil units of the member districts.
32.5This authority is in addition to any other authority authorized under this section. Revenue
32.6raised under this paragraph must be transferred to the intermediate school district.
32.7    (c) If A school district spends must set aside at least $3 per adjusted marginal cost
32.8pupil unit of the safe schools levy proceeds for the purposes authorized under paragraph
32.9(a), clause (6),. The district must annually certify that its total spending on services
32.10provided by the employees listed in paragraph (a), clause (6), is not less than the sum of
32.11its expenditures for these purposes, excluding amounts spent under this section, in the
32.12previous year plus the amount spent under this section.
32.13EFFECTIVE DATE.This section is effective for revenue for fiscal year 2010.

32.14    Sec. 34. Minnesota Statutes 2006, section 126C.51, is amended to read:
32.15126C.51 APPLICATION OF LIMITING TAX LEGISLATION.
32.16    Notwithstanding the provisions of section 471.69 or 471.75, or of any other
32.17provision of law which by per capita limitation, local tax rate limitation, or otherwise,
32.18limits the power of a district to incur any debt or to issue any warrant or order, a school
32.19district or intermediate school district has the powers in sections 126C.50 to 126C.56
32.20specifically conferred upon it and all powers incident and necessary to carrying out the
32.21purposes of sections 126C.50 to 126C.56.
32.22EFFECTIVE DATE.This section is effective the day following final enactment.

32.23    Sec. 35. Minnesota Statutes 2006, section 126C.52, subdivision 2, is amended to read:
32.24    Subd. 2. Limitations. The board of any school district may also borrow money
32.25in the manner and subject to the limitations set forth in sections 126C.50 to 126C.56 in
32.26anticipation of receipt of state aids for schools as defined in Minnesota Statutes and of
32.27federal school aids to be distributed by or through the department. The aggregate of such
32.28borrowings under this subdivision shall never exceed 75 percent of such aids which are
32.29receivable by said school district in the school fiscal year (from July 1 to June 30) in which
32.30the money is borrowed, as estimated and certified by the commissioner.
32.31EFFECTIVE DATE.This section is effective the day following final enactment.

33.1    Sec. 36. Minnesota Statutes 2006, section 126C.52, is amended by adding a
33.2subdivision to read:
33.3    Subd. 3. Intermediate school districts. (a) The board of an intermediate school
33.4district may borrow money in the manner and subject to the limitations set forth in
33.5sections 126C.50 to 126C.56 in anticipation of the receipt of:
33.6    (1) state aids for schools as defined in Minnesota Statutes;
33.7    (2) federal school aids to be distributed by or through the department; and
33.8    (3) membership fees and tuition payments from its member school districts.
33.9    The aggregate of such borrowings under this subdivision shall never exceed 75
33.10percent of such aids, fees, and tuition payments which are receivable by the intermediate
33.11school district in the fiscal year in which the money is borrowed, as estimated and certified
33.12by the commissioner.
33.13    (b) The board of an intermediate school district may, upon receipt of a written
33.14resolution by each of its member school districts, pledge the member district's full faith
33.15and credit and unlimited taxing powers to repay its pro rata share of any certificates issued
33.16or the amount paid by the state under section 126C.55, subdivision 2, plus interest, if the
33.17revenues specified in paragraph (a) and any other revenues of the intermediate school
33.18district are insufficient to do so.
33.19EFFECTIVE DATE.This section is effective the day following final enactment.

33.20    Sec. 37. Minnesota Statutes 2006, section 126C.53, is amended to read:
33.21126C.53 ENABLING RESOLUTION; FORM OF CERTIFICATES OF
33.22INDEBTEDNESS.
33.23    The board of a school district or intermediate school district may authorize and
33.24effect such borrowing, and may issue such certificates of indebtedness upon passage of
33.25a resolution specifying the amount and purposes for which it deems such borrowing is
33.26necessary. The resolution must be adopted by a vote of at least two-thirds of its members.
33.27The board must fix the amount, date, maturity, form, denomination, and other details of
33.28the certificates of indebtedness, not inconsistent with this chapter. The board must fix the
33.29date and place for receipt of bids for the purchase of the certificates when bids are required
33.30and direct the clerk to give notice of the date and place for bidding.
33.31EFFECTIVE DATE.This section is effective the day following final enactment.

34.1    Sec. 38. Minnesota Statutes 2006, section 126C.55, is amended to read:
34.2126C.55 STATE PAYMENT OF DEBT OBLIGATION UPON POTENTIAL
34.3DEFAULT; REPAYMENT; STATE OBLIGATION NOT DEBT.
34.4    Subdivision 1. Definitions. For the purposes of this section, the term "debt
34.5obligation" means:
34.6    (1) a tax or aid anticipation certificate of indebtedness issued under section 126C.52;
34.7    (2) a certificate of participation issued under section 126C.40, subdivision 6; or
34.8    (3) a general obligation bond.
34.9    Subd. 2. Notifications; payment; appropriation. (a) If a school district or
34.10intermediate school district believes that it may be unable to make a principal or interest
34.11payment on any outstanding debt obligation on the date that payment is due, it must
34.12notify the commissioner as soon as possible, but not less than 15 working days before the
34.13date that principal or interest payment is due. The notice must include the name of the
34.14school district or intermediate school district, an identification of the debt obligation issue
34.15in question, the date the payment is due, the amount of principal and interest due on the
34.16payment date, the amount of principal or interest that the school district or intermediate
34.17school district will be unable to repay on that date, the paying agent for the debt obligation,
34.18the wire transfer instructions to transfer funds to that paying agent, and an indication as to
34.19whether a payment is being requested by the school district or intermediate school district
34.20under this section. If a paying agent becomes aware of a potential default, it shall inform
34.21the commissioner of that fact. After receipt of a notice which requests a payment under
34.22this section, after consultation with the school district or intermediate school district and
34.23the paying agent, and after verification of the accuracy of the information provided, the
34.24commissioner shall notify the commissioner of finance of the potential default. The notice
34.25must include a final figure as to the amount due that the school district or intermediate
34.26school district will be unable to repay on the date due.
34.27    (b) Except as provided in subdivision 9, upon receipt of this notice from the
34.28commissioner, the commissioner of finance shall issue a warrant and authorize the
34.29commissioner of education to pay to the paying agent for the debt obligation the specified
34.30amount on or before the date due. The amounts needed for the purposes of this subdivision
34.31are annually appropriated to the department from the state general fund.
34.32    (c) The Departments of Education and Finance must jointly develop detailed
34.33procedures for school districts and intermediate school districts to notify the state that
34.34they have obligated themselves to be bound by the provisions of this section, procedures
34.35for school districts or intermediate school districts and paying agents to notify the state
34.36of potential defaults and to request state payment under this section, and procedures
35.1for the state to expedite payments to prevent defaults. The procedures are not subject
35.2to chapter 14.
35.3    Subd. 3. School district bound; interest rate on state paid amount. If, at the
35.4request of a school district or intermediate school district, the state has paid part or all of
35.5the principal or interest due on a district's debt obligation on a specific date, the school
35.6district or the intermediate school district is bound by all provisions of this section and the
35.7amount paid shall bear taxable interest from the date paid until the date of repayment at
35.8the invested cash rate as it is certified by the commissioner of finance. Interest shall only
35.9accrue on the amounts paid and outstanding less the reduction in aid under subdivision 4
35.10and other payments received from the school district or intermediate school district.
35.11    Subd. 4. Pledge of district's full faith and credit. If, at the request of a school
35.12district or intermediate school district, the state has paid part or all of the principal or
35.13interest due on a district's debt obligation on a specific date, the pledge of the full faith
35.14and credit and unlimited taxing powers of the school district or the intermediate school
35.15district to repay the principal and interest due on those debt obligations shall also, without
35.16an election or the requirement of a further authorization, become a pledge of the full faith
35.17and credit and unlimited taxing powers of the school district or the intermediate school
35.18district to repay to the state the amount paid, with interest. Amounts paid by the state must
35.19be repaid in the order in which the state payments were made.
35.20    Subd. 4a. Aid reduction for repayment. (a) Except as provided in this subdivision,
35.21the state must reduce the state aid payable to the school district or intermediate school
35.22district under this chapter and chapters 122A, 123A, 123B, 124D, 125A, 126C, and 273
35.23by the amount paid by the state under this section on behalf of the district, plus the interest
35.24due on it, and the amount reduced must revert from the appropriate account to the state
35.25general fund. Payments from the school district endowment fund or any federal aid
35.26payments shall not be reduced.
35.27    (b) For an intermediate school district, the state aid payable to the intermediate
35.28school district must first be reduced, before any reduction is made to the state aids payable
35.29to the member districts. If the state aid payable to the intermediate school district is
35.30not sufficient to repay the state, state aid payable to member districts may be reduced
35.31proportionately based on the ratio of each member district's adjusted net tax capacity to
35.32the total adjusted net tax capacity of all member districts.
35.33    (c) If, after review of the financial situation of the school district or intermediate
35.34school district, the commissioner advises the commissioner of finance that a total reduction
35.35of aids would cause an undue hardship on or an undue disruption of the educational
35.36program of the district, the commissioner, with the approval of the commissioner of
36.1finance, may establish a different schedule for reduction of aids to repay the state. The
36.2amount of aids to be reduced is decreased by any amounts repaid to the state by the district
36.3from other revenue sources.
36.4    Subd. 6. Tax levy for repayment. (a) With the approval of the commissioner, a
36.5district may levy in the year the state makes a payment under this section an amount up to
36.6the amount necessary to provide funds for the repayment of the amount paid by the state
36.7plus interest through the date of estimated repayment by the district. The proceeds of this
36.8levy may be used only for this purpose unless they are in excess of the amount actually
36.9due, in which case the excess shall be used to repay other state payments made under this
36.10section or shall be deposited in the debt redemption fund of the school district. This levy
36.11shall be an increase in the levy limits of the district for purposes of section 275.065,
36.12subdivision 6 . The amount of aids to be reduced to repay the state shall be decreased by
36.13the amount levied. This levy by the district is not eligible for debt service equalization
36.14under section 123B.53.
36.15    (b) If the state is not repaid in full for a payment made under this section by
36.16November 30 of the calendar year following the year in which the state makes the
36.17payment, the commissioner shall require the district to certify a property tax levy in an
36.18amount up to the amount necessary to provide funds for repayment of the amount paid by
36.19the state plus interest through the date of estimated repayment by the school district. To
36.20prevent undue hardship, the commissioner may allow the district to certify the levy over a
36.21five-year period. The proceeds of the levy may be used only for this purpose unless they
36.22are in excess of the amount actually due, in which case the excess shall be used to repay
36.23other state payments made under this section or shall be deposited in the debt redemption
36.24fund of the district. This levy shall be an increase in the levy limits of the school district
36.25for purposes of section 275.065, subdivision 6. If the commissioner orders the district
36.26to levy, the amount of aids reduced to repay the state shall be decreased by the amount
36.27levied. This levy by the district is not eligible for debt service equalization under section
36.28123B.53 or any successor provision. A levy under this subdivision must be explained as a
36.29specific increase at the meeting required under section 275.065, subdivision 6.
36.30    (c) For an intermediate school district, a levy made by a member school district
36.31under paragraph (a) or (b) to repay its pro rata share must be spread by the commissioner
36.32as a tax rate based on the total adjusted net tax capacity of the member school districts. The
36.33proceeds of the levy must be remitted by the member school district to the intermediate
36.34school district and must be used by the intermediate school district only to repay the state
36.35amounts owed. Any amount in excess of the amount owed to the state must be repaid
37.1to the member school districts and the commissioner shall adjust each member school
37.2district's property tax levy in the next year.
37.3    Subd. 7. Election as to mandatory application. A school district or intermediate
37.4school district may covenant and obligate itself, prior to the issuance of an issue of debt
37.5obligations, to notify the commissioner of a potential default and to use the provisions of
37.6this section to guarantee payment of the principal and interest on those debt obligations
37.7when due. If the school district or intermediate school district obligates itself to be bound
37.8by this section, it must covenant in the resolution that authorizes the issuance of the debt
37.9obligations to deposit with the paying agent three business days prior to the date on which
37.10a payment is due an amount sufficient to make that payment or to notify the commissioner
37.11under subdivision 1 that it will be unable to make all or a portion of that payment. A school
37.12district or intermediate school district that has obligated itself must include a provision in
37.13its agreement with the paying agent for that issue that requires the paying agent to inform
37.14the commissioner if it becomes aware of a potential default in the payment of principal or
37.15interest on that issue or if, on the day two business days prior to the date a payment is due
37.16on that issue, there are insufficient funds to make the payment on deposit with the paying
37.17agent. Funds invested in a refunding escrow account established under section 475.67 that
37.18are to become available to the paying agent on a principal or interest payment date are
37.19deemed to be on deposit with the paying agent three business days before the payment
37.20date. If a school district or intermediate school district either covenants to be bound by
37.21this section or accepts state payments under this section to prevent a default of a particular
37.22issue of debt obligations, the provisions of this section shall be binding as to that issue
37.23as long as any debt obligation of that issue remain outstanding. If the provisions of this
37.24section are or become binding for more than one issue of debt obligations and a school
37.25district or intermediate school district is unable to make payments on one or more of those
37.26issues, the district must continue to make payments on the remaining issues.
37.27    Subd. 8. Mandatory plan; technical assistance. If the state makes payments
37.28on behalf of a school district or intermediate school district under this section or the
37.29district defaults in the payment of principal or interest on an outstanding debt obligation, it
37.30must submit a plan to the commissioner for approval specifying the measures it intends
37.31to implement to resolve the issues which led to its inability to make the payment and
37.32to prevent further defaults. The department must provide technical assistance to the
37.33school district or intermediate school district in preparing its plan. If the commissioner
37.34determines that a district's plan is not adequate, the commissioner shall notify the school
37.35district or intermediate school district that the plan has been disapproved, the reasons for
37.36the disapproval, and that the state shall not make future payments under this section for
38.1debt obligations issued after the date specified in that notice until its plan is approved.
38.2The commissioner may also notify the school district or intermediate school district that
38.3until its plan is approved, other aids due the district will be withheld after a date specified
38.4in the notice.
38.5    Subd. 9. State bond rating. If the commissioner of finance determines that the
38.6credit rating of the state would be adversely affected thereby, the commissioner of finance
38.7shall not issue warrants under subdivision 2 for the payment of principal or interest on any
38.8debt obligations for which a district did not, prior to their issuance, obligate itself to be
38.9bound by the provisions of this section.
38.10    Subd. 10. Continuing disclosure agreements. The commissioner of finance
38.11may enter into written agreements or contracts relating to the continuing disclosure of
38.12information needed to facilitate the ability of school districts or intermediate school
38.13districts to issue debt obligations according to federal securities laws, rules, and
38.14regulations, including securities and exchange commission rules and regulations, section
38.15240.15c2-12. Such agreements or contracts may be in any form the commissioner of
38.16finance deems reasonable and in the state's best interests.
38.17EFFECTIVE DATE.This section is effective the day following final enactment.

38.18    Sec. 39. [127A.331] SCHOOL ENDOWMENT FUND; USE OF REVENUE.
38.19    A school that receives school endowment fund revenue under section 127A.33
38.20in excess of $36 per pupil in average daily membership may use that revenue only for
38.21the following purposes:
38.22    (1) to purchase or lease computers and related materials, copying machines,
38.23telecommunications equipment, and other noninstructional equipment;
38.24    (2) to purchase or lease assistive technology or equipment for instructional programs;
38.25    (3) to purchase new and replacement library media resources or technology;
38.26    (4) to pay for ongoing or recurring telecommunications/Internet access costs
38.27associated with Internet access, data lines, and video links; and
38.28    (5) to pay for service provider installation fees for installation of new
38.29telecommunications lines or increased bandwidth.
38.30EFFECTIVE DATE.This section is effective for revenue for fiscal year 2010.

38.31    Sec. 40. Minnesota Statutes 2006, section 127A.45, subdivision 16, is amended to read:
38.32    Subd. 16. Payments to third parties. Notwithstanding subdivision 3, the current
38.33year aid payment percentage of the amounts under section 123A.26, subdivision 3 and
39.1section 124D.041, shall be paid in equal installments on August 30, December 30, and
39.2March 30, with a final adjustment payment on October 30 of the next fiscal year of the
39.3remaining amount.

39.4    Sec. 41. [145.986] STATEWIDE HEALTH IMPROVEMENT PROGRAM.
39.5    Subdivision 1. Goals. The initial goals of the public health improvement program
39.6are to reduce the percentage of Minnesotans who are obese or overweight to less than half
39.7by the year 2020 and to reduce tobacco smoking by two percent annually starting in 2011.
39.8By 2011, and considering available funding, the commissioner of health, in consultation
39.9with the State Community Health Advisory Committee established in section 145A.10,
39.10subdivision 10, and other stakeholders, may make recommendations as to future goals
39.11related to alcohol use and illegal drug use.
39.12    Subd. 2. Funding local communities. Beginning January 1, 2009, the
39.13commissioner of health must provide funding to community health boards to convene,
39.14coordinate, and lead locally developed programs targeted at achieving measurable health
39.15improvement goals. Funding to each community health board will be distributed based on
39.16a per capita formula, with a base allocation of $50,000 to each community health board
39.17that receives funding. By January 15, 2011, the commissioner of health must recommend
39.18whether additional funding should be distributed to community health boards based on
39.19health disparities demonstrated in the populations served.
39.20    Subd. 3. Outcomes. (a) The commissioner of health must set performance measures
39.21and annually review the progress of local communities in improving the performance
39.22measures. The commissioner may provide technical assistance and corrective action plans
39.23to ensure that local communities are making sufficient progress.
39.24    (b) The commissioner must measure current public health data, using existing
39.25measures and data collection systems when available, to determine baseline data against
39.26which progress shall be monitored.
39.27    Subd. 4. Media campaign. The commissioner of health must conduct a statewide
39.28marketing campaign using public media to reinforce local efforts at addressing health
39.29improvement goals. The commissioner must develop the statewide campaigns and
39.30determine the timing of these campaigns in consultation with local public health
39.31representatives.

39.32    Sec. 42. Laws 2007, chapter 146, article 2, section 46, subdivision 13, is amended to
39.33read:
40.1    Subd. 13. Preadvanced placement, advanced placement, international
40.2baccalaureate, and concurrent enrollment programs. For preadvanced placement,
40.3advanced placement, international baccalaureate, and concurrent enrollment programs
40.4under Minnesota Statutes, sections 120B.132 and 124D.091:

40.5		$	6,500,000	.....	2008
40.6		$	6,500,000	.....	2009

40.7    Of this amount, $2,500,000 each year is for concurrent enrollment program aid
40.8under Minnesota Statutes, section 124D.091. If the appropriation is insufficient, the
40.9commissioner must proportionately reduce the aid payment to each district. Any balance
40.10in the first year does not cancel but is available in the second year.
40.11    The base appropriation for fiscal year 2010 and later is $2,000,000.
40.12EFFECTIVE DATE.This section is effective the day following final enactment.

40.13    Sec. 43. Laws 2007, chapter 146, article 3, section 23, subdivision 2, is amended to
40.14read:
40.15    Subd. 2. Report. (a) The task force must submit to the education policy and finance
40.16committees of the legislature by February 15, 2008 2009, a report that identifies and
40.17clearly and concisely explains each provision in state law or rule that exceeds or expands
40.18upon a minimum federal requirement contained in law or regulation for providing special
40.19education programs and services to eligible students. The report also must recommend
40.20which state provisions statutes and rules that exceed or expand upon a minimum federal
40.21requirement may be amended to conform with minimum federal requirements or made
40.22more effective as determined by a majority of the task force members. The task force must
40.23recommend rules governing the use of aversive and deprivation procedures by school
40.24district employees or persons under contract with a school district. The task force expires
40.25when it submits its report to the legislature.
40.26    (b) Consistent with subdivision 1, the Department of Education member of the
40.27task force representing regulators shall be replaced with a parent advocate selected by a
40.28statewide organization that advocates on behalf of families with children with disabilities.
40.29    (c) The Department of Education must provide technical assistance at the request of
40.30the task force.
40.31EFFECTIVE DATE.This section is effective the day following final enactment.

40.32    Sec. 44. Laws 2007, chapter 146, article 3, section 24, subdivision 9, is amended to
40.33read:
41.1    Subd. 9. Special Education Task Force. For the task force to compare federal
41.2and state special education requirements:

41.3

$

20,000 40,000

.....

2008

41.4    Any balance in the first year does not cancel but is available in the second year.
41.5    This is a onetime appropriation.
41.6EFFECTIVE DATE.This section is effective the day following final enactment.

41.7    Sec. 45. Laws 2007, chapter 146, article 5, section 13, subdivision 5, is amended to
41.8read:
41.9    Subd. 5. Plainview-Elgin-Millville fund balance replacement aid.
41.10    For fund balance replacement aid for Independent School District No. 2899,
41.11Plainview-Elgin-Millville:

41.12

$

17,000 24,000

.....

2008

41.13    This is a onetime appropriation.
41.14EFFECTIVE DATE.This section is effective the day following final enactment.

41.15    Sec. 46. Laws 2007, chapter 146, article 7, section 4, is amended to read:
41.16    Sec. 4. APPROPRIATIONS; DEPARTMENT OF EDUCATION.
41.17    Subdivision 1. Department of Education. Unless otherwise indicated, the sums
41.18indicated in this section are appropriated from the general fund to the Department of
41.19Education for the fiscal years designated.
41.20    Subd. 2. Department. (a) For the Department of Education:

41.21		$	22,169,000	.....	2008
41.22 41.23		$	22,653,000 21,761,000	.....	2009

41.24    Any balance in the first year does not cancel but is available in the second year.
41.25    (b) $7,000 in fiscal year 2008 is for GRAD test rulemaking.
41.26    (c) $7,000 in fiscal year 2008 is for rulemaking under section 3.
41.27    (d) $40,000 each year is for an early hearing loss intervention coordinator under
41.28Minnesota Statutes, section 125A.63, subdivision 5. If the department expends federal
41.29funds to employ a hearing loss coordinator under Minnesota Statutes, section 125.63,
41.30subdivision 5 , then the appropriation under this paragraph is reallocated for purposes of
41.31employing a world languages coordinator.
41.32    (e) $260,000 each year is for the Minnesota Children's Museum.
41.33    (f) $41,000 each year is for the Minnesota Academy of Science.
42.1    (g) $619,000 in fiscal year 2008 and $632,000 in fiscal year 2009 are for the Board
42.2of Teaching.
42.3    (h) $163,000 in fiscal year 2008 and $171,000 in fiscal year 2009 are for the Board
42.4of School Administrators.
42.5    (i) $50,000 each year is for the Duluth Children's Museum.
42.6    (j) The expenditures of federal grants and aids as shown in the biennial budget
42.7document and its supplements are approved and appropriated and shall be spent as
42.8indicated.
42.9    (k) None of the amounts appropriated under this subdivision may be used for
42.10Minnesota's Washington, D.C., office.

42.11    Sec. 47. Laws 2007, First Special Session chapter 2, article 1, section 11, subdivision
42.121, is amended to read:

42.13

Subdivision 1. Total Appropriation

$

584,000 298,000

42.14The appropriations in this section are from
42.15the general fund. The amounts that may be
42.16spent for each purpose are specified in the
42.17following subdivisions.
42.18EFFECTIVE DATE.This section is effective the day following final enactment.

42.19    Sec. 48. Laws 2007, First Special Session chapter 2, article 1, section 11, subdivision
42.202, is amended to read:

42.21 42.22

Subd. 2. Independent School District No. 239, Rushford-Peterson

42.23

(a) Flood Enrollment Impact Aid

89,000

42.24The commissioner of education shall pay to
42.25the school district flood enrollment impact
42.26aid equal to $5,394 times the number of
42.27pupils lost as a result of the floods of August
42.282007. The district must provide to the
42.29commissioner of education documentation
42.30of the number of pupils in average daily
42.31membership lost as a result of the flood.

42.32

(b) Disaster Relief Facilities Grant

250,000 150,000

43.1For facilities cleanup, repair, and replacement
43.2costs related to the floods of August 2007 not
43.3covered by the district's insurance settlement
43.4or through Federal Emergency Management
43.5Agency payments. The commissioner of
43.6education may request the school district
43.7to provide necessary information before
43.8awarding a grant.

43.9

(c) Pupil Transportation Aid

40,000

43.10For increased costs associated with
43.11transporting students as a result of the floods
43.12of August 2007.
43.13EFFECTIVE DATE.This section is effective the day following final enactment.

43.14    Sec. 49. Laws 2007, First Special Session chapter 2, article 1, section 11, subdivision
43.156, is amended to read:

43.16 43.17

Subd. 6. Disaster Relief Facilities Grants to Other Districts

90,00014,000

43.18For facilities cleanup, repair, and replacement
43.19costs related to the floods of August 2007 not
43.20covered by the district's insurance settlement
43.21or through Federal Emergency Management
43.22Agency payments. The commissioner of
43.23education may request the school district
43.24to provide necessary information before
43.25awarding a grant. School districts not
43.26included in subdivisions 2 to 5 must be given
43.27priority in the allocation of this appropriation.
43.28EFFECTIVE DATE.This section is effective the day following final enactment.

43.29    Sec. 50. FUND TRANSFERS.
43.30    Subdivision 1. Capital account transfers. Notwithstanding any law to the contrary,
43.31on June 30, 2008, a school district may transfer money from its reserved for operating
43.32capital account to its undesignated balance in the general fund. The amount transferred
44.1by any school district must not exceed $51 times the district's adjusted marginal cost
44.2pupil units for fiscal year 2007. This transfer may occur only after the school board has
44.3adopted a written resolution stating the amount of the transfer and declaring that the
44.4school district's operating capital needs are being met.
44.5    Subd. 2. Reserved for operating capital account transfer; Balaton school
44.6district. Notwithstanding Minnesota Statutes, section 123B.79 or 123B.80, or subdivision
44.71, on June 30, 2008, Independent School District No. 411, Balaton, may transfer up to
44.8$70,000 from its reserved for operating capital account to its undesignated general fund
44.9balance.
44.10    Subd. 3. Reserved for operating capital account transfer; East Central school
44.11district. Notwithstanding Minnesota Statutes, section 123B.79 or 123B.80, or subdivision
44.121, on June 30, 2008, Independent School District No. 2580, East Central, may transfer up
44.13to $300,000 from its reserved for operating capital account to its undesignated general
44.14fund balance.
44.15EFFECTIVE DATE.This section is effective the day following final enactment.

44.16    Sec. 51. ONETIME GENERAL EDUCATION REVENUE INCREASE; FISCAL
44.17YEAR 2009 ONLY.
44.18    A school district's general education revenue under Minnesota Statutes, section
44.19126C.10, is increased for fiscal year 2009 only by an amount equal to $51 times the
44.20district's adjusted marginal cost pupil units for that year.

44.21    Sec. 52. ALTERNATIVE TEACHER COMPENSATION AID.
44.22    A school district that has not applied for alternative teacher compensation aid under
44.23Minnesota Statutes, section 126C.10, subdivision 34, by March 20, 2008, is not eligible
44.24for aid under that subdivision for fiscal year 2009. Nothing in this section limits a district's
44.25eligibility for alternative teacher compensation aid in subsequent fiscal years.
44.26EFFECTIVE DATE.This section is effective the day following final enactment.

44.27    Sec. 53. IMPLEMENTING A STUDENT GROWTH-BASED VALUE-ADDED
44.28SYSTEM.
44.29    (a) To implement the requirements of Minnesota Statutes, section 120B.35,
44.30subdivision 3, paragraph (b), and to help parents and members of the public compare the
44.31reported data, the commissioner must convene a group of expert school district assessment
44.32and evaluation staff, including a recognized Minnesota assessment group composed
45.1of assessment and evaluation directors and staff and researchers under Minnesota
45.2Statutes, section 120B.299, subdivision 6, and interested stakeholders, including school
45.3superintendents, school principals, school teachers, and parents to examine the actual
45.4statewide performance of students using Minnesota's growth-based value-added system
45.5and establish criteria for identifying schools and school districts that demonstrate
45.6accelerated growth in order to advance educators' professional development and replicate
45.7programs that succeed in meeting students' diverse learning needs.
45.8    (b) The commissioner must submit a written report to the education committees of
45.9the house of representatives and senate by February 15, 2009, describing the criteria for
45.10identifying schools and school districts that demonstrate accelerated growth. The group
45.11convened under this section expires on June 30, 2009.
45.12EFFECTIVE DATE.This section is effective the day following final enactment
45.13and applies to school report cards in the 2008-2009 school year and later.

45.14    Sec. 54. IMPLEMENTING RIGOROUS COURSEWORK MEASURES
45.15RELATED TO STUDENT PERFORMANCE.
45.16    (a) To implement the requirements of Minnesota Statutes, section 120B.35,
45.17subdivision 3, paragraph (c), clauses (1) and (2), and to help parents and members of the
45.18public compare the reported data, the commissioner of education must convene a group of
45.19recognized and qualified experts and interested stakeholders, including parents among
45.20other stakeholders, to develop a model projecting anticipated performance of each high
45.21school on preparation and rigorous coursework measures that compares the school with
45.22similar schools. The model must use information about entering high school students
45.23based on particular background characteristics that are predictive of differing rates of
45.24college readiness. These characteristics include grade 8 achievement levels, high school
45.25student mobility, high school student attendance, and the size of each entering ninth grade
45.26class. The group of experts and stakeholders may examine other characteristics not part
45.27of the prediction model including the nine student categories identified under the federal
45.282001 No Child Left Behind Act, and two student gender categories of male and female,
45.29respectively. The commissioner annually must use the predicted level of entering students'
45.30performance to provide a context for interpreting graduating students' actual performance.
45.31The group convened under this section expires June 30, 2011.
45.32    (b) Consistent with paragraph (a), the commissioner also must propose an expanded
45.33high school student data system to report preparation and rigorous coursework measures
45.34and facilitate additional research on college readiness. This proposed data system must
45.35expect school districts and charter schools to report data to the state education department
46.1on each course a high school student takes and completes. The commissioner must link
46.2the course data file to the department's existing student reporting system. The proposed
46.3data system must enable the commissioner to prepare detailed reports, consistent with the
46.4requirements in Minnesota Statutes, section 120B.35, subdivision 3, paragraph (d), clauses
46.5(1) and (2), and support the development of a state P-16 longitudinal data system.
46.6EFFECTIVE DATE.This section is effective the day following final enactment
46.7and applies to school report cards beginning July 1, 2011.

46.8    Sec. 55. IMPLEMENTING MEASURES FOR ASSESSING STUDENTS'
46.9SELF-REPORTED SENSE OF SCHOOL SAFETY, ENGAGEMENT IN
46.10SCHOOL, AND THE QUALITY OF RELATIONSHIPS WITH TEACHERS,
46.11ADMINISTRATORS, AND OTHER STUDENTS.
46.12    (a) To implement the requirements of Minnesota Statutes, section 120B.35,
46.13subdivision 3, paragraph (d), and to help parents and members of the public compare the
46.14reported data, the commissioner of education, in consultation with interested stakeholders,
46.15including parents among other stakeholders, must convene a group of recognized and
46.16qualified experts to:
46.17    (1) analyze the University of Minnesota student safety and engagement survey
46.18instrument and other commonly recognized survey instruments to select the survey
46.19instrument that best meets state accountability requirements;
46.20    (2) ensure that the selected survey instrument has sound psychometric properties and
46.21is useful for intervention planning;
46.22    (3) determine at what grade levels to administer the survey instrument and ensure
46.23that the survey instrument can be used at those grade levels; and
46.24    (4) determine through disaggregated use of survey indicators or other means how to
46.25report "safety" in order to comply with federal law.
46.26    (b) The commissioner must submit a written report to the education committees of
46.27the house of representatives and senate by February 15, 2009, presenting the experts'
46.28responses to paragraph (a), clauses (1) to (4). The group convened under this section
46.29expires June 30, 2009.
46.30EFFECTIVE DATE.This section is effective the day following final enactment
46.31and applies to school report cards beginning July 1, 2011.

46.32    Sec. 56. GROWTH-BASED VALUE-ADDED SYSTEM.
47.1    The growth-based value-added system used by the commissioner of education to
47.2comply with Minnesota Statutes, section 120B.35, subdivision 3, paragraph (b), must
47.3be consistent with the growth-based value-added model contained in the document
47.4labeled "Educational Report Card Growth Model" developed in partnership with the
47.5Minnesota Department of Education. The document must be deposited with the
47.6Office of the Revisor of Statutes, the Legislative Reference Library, and the State Law
47.7Library, where the document shall be maintained until the commissioner implements the
47.8growth-based value-added system under Minnesota Statutes, section 120B.35, subdivision
47.93, paragraph (b). The recognized Minnesota assessment group composed of assessment
47.10and evaluation directors and staff and researchers under Minnesota Statutes, section
47.11120B.299, subdivision 6, must determine whether the growth-based value-added model
47.12the commissioner uses to comply with Minnesota Statutes, section 120B.35, subdivision
47.133, paragraph (b), is consistent with the deposited document and report its determination to
47.14the education committees of the house of representatives and senate by February 15, 2009.
47.15EFFECTIVE DATE.This section is effective the day following final enactment.

47.16    Sec. 57. EXPEDITED PROCESS; SPECIFIC LEARNING DISABILITIES
47.17RULE.
47.18    The commissioner of education may use the expedited process under Minnesota
47.19Statutes, section 14.389, to conform Minnesota Rules, part 3525.1341, to new federal
47.20requirements on specific learning disabilities under Public Law 108-446, sections 602(30)
47.21and 614(b)(6), the Individuals with Disabilities Education Improvement Act of 2004,
47.22and its implementing regulations.
47.23EFFECTIVE DATE.This section is effective the day following final enactment.

47.24    Sec. 58. ENDING PARTICIPATION IN NO CHILD LEFT BEHIND.
47.25    The commissioner of education must nullify and revoke by August 1, 2009, the
47.26consolidated state plan that the state of Minnesota submitted to the federal Department
47.27of Education on implementing the No Child Left Behind Act of 2001, and any other
47.28Minnesota state contract or agreement entered into under the provisions of the No Child
47.29Left Behind Act of 2001.

47.30    Sec. 59. APPROPRIATIONS.
48.1    Subdivision 1. Department of Education. The sums indicated in this section are
48.2appropriated from the general fund, unless otherwise indicated, to the Department of
48.3Education for the fiscal years designated.
48.4    Subd. 2. Additional general education revenue. For additional general education
48.5aid according to section 51:

48.6

$

23,262,000

.....

2009

48.7    This appropriation is in addition to any other appropriation for this purpose.
48.8    This 2009 appropriation includes $0 for 2008 and $18,926,000 for 2009.
48.9    Subd. 3. Rushford-Peterson. For a grant to Independent School District No.
48.10239, Rushford-Peterson, for school district flood enrollment impact aid and aid for the
48.11increased costs of transporting students as a result of the floods of August 2007.

48.12

$

158,000

.....

2009

48.13    The base appropriation for fiscal year 2010 is $158,000. The base appropriation for
48.14later years is zero.
48.15    Subd. 4. Virginia. For a grant to Independent School District No. 701, Virginia, for
48.16emergency school facility repairs:

48.17

$

100,000

.....

2009

48.18    This is a onetime appropriation.
48.19    Subd. 5. Lancaster. For a grant to Independent School District No. 356, Lancaster,
48.20to replace the loss of sparsity revenue:

48.21

$

100,000

.....

2009

48.22    The base appropriation for fiscal years 2010 and 2011 is $100,000 per year. The
48.23base appropriation for later fiscal years is zero.
48.24    Subd. 6. Principal's Leadership Institute. For a grant to the Principal's Leadership
48.25Institute under Minnesota Statutes, section 122A.74:

48.26

$

400,000

.....

2009

48.27    The base appropriation for this program for fiscal year 2010 and later is $400,000.
48.28    Subd. 7. Board of Teaching; licensure by portfolio. For the Board of Teaching
48.29for licensure by portfolio:

48.30

$

17,000

.....

2009

49.1    This appropriation is from the educator licensure portfolio account of the special
49.2revenue fund.

49.3    Sec. 60. REPEALER.
49.4(a) Minnesota Statutes 2006, sections 121A.67; 125A.16; 125A.19; 125A.20; and
49.5125A.57, are repealed.
49.6(b) Laws 2006, chapter 263, article 3, section 16; and Laws 2007, First Special
49.7Session chapter 2, article 1, section 11, subdivisions 3, and 4, are repealed.

49.8ARTICLE 2

49.9FORECAST ADJUSTMENTS

49.10    Section 1. Laws 2007, chapter 146, article 1, section 24, subdivision 2, is amended to
49.11read:
49.12    Subd. 2. General education aid. For general education aid under Minnesota
49.13Statutes, section 126C.13, subdivision 4:

49.14 49.15		$	5,618,342,000 5,600,647,000	.....	2008
49.16 49.17		$	5,618,342,000 5,649,098,000	.....	2009

49.18    The 2008 appropriation includes $531,733,000 $536,251,000 for 2007 and
49.19$5,073,250,000 $5,064,396,000 for 2008.
49.20    The 2009 appropriation includes $546,314,000 $543,752,000 for 2008 and
49.21$5,072,028,000 $5,105,346,000 for 2009.

49.22    Sec. 2. Laws 2007, chapter 146, article 1, section 24, subdivision 3, is amended to read:
49.23    Subd. 3. Referendum tax base replacement aid. For referendum tax base
49.24replacement aid under Minnesota Statutes, section 126C.17, subdivision 7a:

49.25

$

870,000861,000

.....

2008

49.26    The 2008 appropriation includes $870,000 $861,000 for 2007 and $0 for 2008.

49.27    Sec. 3. Laws 2007, chapter 146, article 1, section 24, subdivision 4, is amended to read:
49.28    Subd. 4. Enrollment options transportation. For transportation of pupils attending
49.29postsecondary institutions under Minnesota Statutes, section 124D.09, or for transportation
49.30of pupils attending nonresident districts under Minnesota Statutes, section 124D.03:

49.31		$	95,00048,000	.....	2008
49.32		$	97,00050,000	.....	2009

50.1    Sec. 4. Laws 2007, chapter 146, article 1, section 24, subdivision 5, is amended to read:
50.2    Subd. 5. Abatement revenue. For abatement aid under Minnesota Statutes, section
50.3127A.49 :

50.4 50.5		$	1,343,000 1,333,000	.....	2008
50.6 50.7		$	1,347,000 1,629,000	.....	2009

50.8    The 2008 appropriation includes $76,000 for 2007 and $1,267,000 $1,257,000
50.9for 2008.
50.10    The 2009 appropriation includes $140,000 $139,000 for 2008 and $1,207,000
50.11$1,490,000 for 2009.

50.12    Sec. 5. Laws 2007, chapter 146, article 1, section 24, subdivision 6, is amended to read:
50.13    Subd. 6. Consolidation transition. For districts consolidating under Minnesota
50.14Statutes, section 123A.485:

50.15		$	565,000240,000	.....	2008
50.16		$	212,000339,000	.....	2009

50.17    The 2008 appropriation includes $43,000 for 2007 and $522,000 $197,000 for 2008.
50.18    The 2009 appropriation includes $57,000 $21,000 for 2008 and $155,000 $318,000
50.19for 2009.

50.20    Sec. 6. Laws 2007, chapter 146, article 1, section 24, subdivision 7, is amended to read:
50.21    Subd. 7. Nonpublic pupil education aid. For nonpublic pupil education aid under
50.22Minnesota Statutes, sections 123B.40 to 123B.43, and 123B.87:

50.23 50.24		$	16,290,000 15,601,000	.....	2008
50.25 50.26		$	16,620,000 16,608,000	.....	2009

50.27    The 2008 appropriation includes $1,606,000 $1,214,000 for 2007 and $14,684,000
50.28$14,387,000 for 2008.
50.29    The 2009 appropriation includes $1,631,000 $1,598,000 for 2008 and $14,989,000
50.30$15,010,000 for 2009.

50.31    Sec. 7. Laws 2007, chapter 146, article 1, section 24, subdivision 8, is amended to read:
50.32    Subd. 8. Nonpublic pupil transportation. For nonpublic pupil transportation aid
50.33under Minnesota Statutes, section 123B.92, subdivision 9:

51.1 51.2		$	21,551,000 20,755,000	.....	2008
51.3 51.4		$	21,392,000 21,007,000	.....	2009

51.5    The 2008 appropriation includes $2,124,000 for 2007 and $19,427,000 $18,631,000
51.6for 2008.
51.7    The 2009 appropriation includes $2,158,000 $2,070,000 for 2008 and $19,234,000
51.8$18,937,000 for 2009.

51.9B. EDUCATION EXCELLENCE

51.10    Sec. 8. Laws 2007, chapter 146, article 2, section 46, subdivision 2, is amended to read:
51.11    Subd. 2. Charter school building lease aid. For building lease aid under Minnesota
51.12Statutes, section 124D.11, subdivision 4:

51.13 51.14		$	31,875,000 32,817,000	.....	2008
51.15 51.16		$	36,193,000 37,527,000	.....	2009

51.17    The 2008 appropriation includes $2,814,000 for 2007 and $29,061,000 $30,003,000
51.18for 2008.
51.19    The 2009 appropriation includes $3,229,000 $3,333,000 for 2008 and $32,964,000
51.20$34,194,000 for 2009.

51.21    Sec. 9. Laws 2007, chapter 146, article 2, section 46, subdivision 3, is amended to read:
51.22    Subd. 3. Charter school startup cost aid. For charter school startup cost aid
51.23under Minnesota Statutes, section 124D.11:

51.24 51.25		$	1,896,000 1,801,000	.....	2008
51.26 51.27		$	2,161,000 1,987,000	.....	2009

51.28    The 2008 appropriation includes $241,000 $239,000 for 2007 and $1,655,000
51.29$1,562,000 for 2008.
51.30    The 2009 appropriation includes $183,000 $173,000 for 2008 and $1,978,000
51.31$1,814,000 for 2009.

51.32    Sec. 10. Laws 2007, chapter 146, article 2, section 46, subdivision 4, is amended to
51.33read:
52.1    Subd. 4. Integration aid. For integration aid under Minnesota Statutes, section
52.2124D.86, subdivision 5 :

52.3 52.4		$	61,769,000 59,036,000	.....	2008
52.5 52.6		$	61,000,000 62,448,000	.....	2009

52.7    The 2008 appropriation includes $5,824,000 for 2007 and $55,945,000 $53,212,000
52.8for 2008.
52.9    The 2009 appropriation includes $6,216,000 $5,912,000 for 2008 and $54,784,000
52.10$56,536,000 for 2009.

52.11    Sec. 11. Laws 2007, chapter 146, article 2, section 46, subdivision 6, is amended to
52.12read:
52.13    Subd. 6. Interdistrict desegregation or integration transportation grants. For
52.14interdistrict desegregation or integration transportation grants under Minnesota Statutes,
52.15section 124D.87:

52.16 52.17		$	9,639,000 9,901,000	.....	2008
52.18 52.19		$	11,567,000 11,881,000	.....	2009

52.20    Sec. 12. Laws 2007, chapter 146, article 2, section 46, subdivision 9, is amended to
52.21read:
52.22    Subd. 9. Tribal contract schools. For tribal contract school aid under Minnesota
52.23Statutes, section 124D.83:

52.24 52.25		$	2,238,000 2,207,000	.....	2008
52.26 52.27		$	2,422,000 2,392,000	.....	2009

52.28    The 2008 appropriation includes $204,000 for 2007 and $2,034,000 $2,003,000
52.29for 2008.
52.30    The 2009 appropriation includes $226,000 $222,000 for 2008 and $2,196,000
52.31$2,170,000 for 2009.

52.32C. SPECIAL PROGRAMS

52.33    Sec. 13. Laws 2007, chapter 146, article 3, section 24, subdivision 3, is amended to
52.34read:
53.1    Subd. 3. Aid for children with disabilities. For aid under Minnesota Statutes,
53.2section 125A.75, subdivision 3, for children with disabilities placed in residential facilities
53.3within the district boundaries for whom no district of residence can be determined:

53.4 53.5		$	1,538,000 2,086,000	.....	2008
53.6 53.7		$	1,729,000 2,282,000	.....	2009

53.8    If the appropriation for either year is insufficient, the appropriation for the other
53.9year is available.

53.10    Sec. 14. Laws 2007, chapter 146, article 3, section 24, subdivision 4, is amended to
53.11read:
53.12    Subd. 4. Travel for home-based services. For aid for teacher travel for home-based
53.13services under Minnesota Statutes, section 125A.75, subdivision 1:

53.14		$	254,000207,000	.....	2008
53.15		$	284,000227,000	.....	2009

53.16    The 2008 appropriation includes $22,000 for 2007 and $232,000 $185,000 for 2008.
53.17    The 2009 appropriation includes $25,000 $20,000 for 2008 and $259,000 $207,000
53.18for 2009.

53.19D. FACILITIES AND TECHNOLOGY

53.20    Sec. 15. Laws 2007, chapter 146, article 4, section 16, subdivision 2, is amended to
53.21read:
53.22    Subd. 2. Health and safety revenue. For health and safety aid according to
53.23Minnesota Statutes, section 123B.57, subdivision 5:

53.24		$	190,000254,000	.....	2008
53.25		$	179,000103,000	.....	2009

53.26    The 2008 appropriation includes $20,000 for 2007 and $170,000 $234,000 for 2008.
53.27    The 2009 appropriation includes $18,000 $26,000 for 2008 and $161,000 $77,000
53.28for 2009.

53.29    Sec. 16. Laws 2007, chapter 146, article 4, section 16, subdivision 3, is amended to
53.30read:
53.31    Subd. 3. Debt service equalization. For debt service aid according to Minnesota
53.32Statutes, section 123B.53, subdivision 6:

54.1 54.2		$	14,813,000 14,814,000	.....	2008
54.3 54.4		$	11,124,000 9,109,000	.....	2009

54.5    The 2008 appropriation includes $1,767,000 $1,766,000 for 2007 and $13,046,000
54.6$13,048,000 for 2008.
54.7    The 2009 appropriation includes $1,450,000 $1,449,000 for 2008 and $9,674,000
54.8$7,660,000 for 2009.

54.9    Sec. 17. Laws 2007, chapter 146, article 4, section 16, subdivision 6, is amended to
54.10read:
54.11    Subd. 6. Deferred maintenance aid. For deferred maintenance aid, according to
54.12Minnesota Statutes, section 123B.591, subdivision 4:

54.13 54.14		$	3,290,000 3,232,000	.....	2008
54.15 54.16		$	2,667,000 2,627,000	.....	2009

54.17    The 2008 appropriation includes $0 for 2007 and $3,290,000 $3,232,000 for 2008.
54.18    The 2009 appropriation includes $365,000 $359,000 for 2008 and $2,302,000
54.19$2,268,000 for 2009.

54.20    Sec. 18. Laws 2007, chapter 146, article 4, section 16, subdivision 8, is amended to
54.21read:
54.22    Subd. 8. School technology and operating capital aid grants. For school
54.23technology and operating capital grants under section 11:

54.24 54.25		$	38,145,000 38,236,000	.....	2008
54.26 54.27		$	52,676,000 52,454,000	.....	2009

54.28    This is a onetime appropriation.

54.29E. NUTRITION AND ACCOUNTING

54.30    Sec. 19. Laws 2007, chapter 146, article 5, section 13, subdivision 2, is amended to
54.31read:
54.32    Subd. 2. School lunch. For school lunch aid according to Minnesota Statutes,
54.33section 124D.111, and Code of Federal Regulations, title 7, section 210.17:

55.1 55.2		$	12,022,000 12,094,000	.....	2008
55.3 55.4		$	12,166,000 12,394,000	.....	2009

55.5    Sec. 20. Laws 2007, chapter 146, article 5, section 13, subdivision 3, is amended to
55.6read:
55.7    Subd. 3. Traditional school breakfast; kindergarten milk. For traditional school
55.8breakfast aid and kindergarten milk under Minnesota Statutes, sections 124D.1158 and
55.9124D.118 :

55.10 55.11		$	5,460,000 5,583,000	.....	2008
55.12 55.13		$	5,695,000 5,994,000	.....	2009

55.14    Sec. 21. Laws 2007, chapter 146, article 5, section 13, subdivision 4, is amended to
55.15read:
55.16    Subd. 4. Summer food service replacement aid. For summer food service
55.17replacement aid under Minnesota Statutes, section 124D.119:

55.18		$	150,000127,000	.....	2008
55.19		$	150,000	.....	2009

55.20F. EARLY CHILDHOOD AND ADULT PROGRAMS

55.21    Sec. 22. Laws 2007, chapter 146, article 9, section 17, subdivision 2, is amended to
55.22read:
55.23    Subd. 2. Early childhood family education aid. For early childhood family
55.24education aid under Minnesota Statutes, section 124D.135:

55.25 55.26		$	21,106,000 21,092,000	.....	2008
55.27 55.28		$	29,601,000 29,324,000	.....	2009

55.29    The 2008 appropriation includes $1,796,000 for 2007 and $19,310,000 $19,296,000
55.30for 2008.
55.31    The 2009 appropriation includes $2,145,000 $2,144,000 for 2008 and $27,456,000
55.32$27,180,000 for 2009.

56.1    Sec. 23. Laws 2007, chapter 146, article 9, section 17, subdivision 3, is amended to
56.2read:
56.3    Subd. 3. School readiness. For revenue for school readiness programs under
56.4Minnesota Statutes, sections 124D.15 and 124D.16:

56.5 56.6		$	9,995,000 9,987,000	.....	2008
56.7		$	10,095,000	.....	2009

56.8    The 2008 appropriation includes $909,000 $901,000 for 2007 and $9,086,000 for
56.92008.
56.10    The 2009 appropriation includes $1,009,000 for 2008 and $9,086,000 for 2009.

56.11    Sec. 24. Laws 2007, chapter 146, article 9, section 17, subdivision 4, is amended to
56.12read:
56.13    Subd. 4. Health and developmental screening aid. For health and developmental
56.14screening aid under Minnesota Statutes, sections 121A.17 and 121A.19:

56.15 56.16		$	3,159,000 2,624,000	.....	2008
56.17 56.18		$	3,330,000 2,656,000	.....	2009

56.19    The 2008 appropriation includes $288,000 for 2007 and $2,871,000 $2,336,000
56.20for 2008.
56.21    The 2009 appropriation includes $319,000 $259,000 for 2008 and $3,011,000
56.22$2,397,000 for 2009.

56.23    Sec. 25. Laws 2007, chapter 146, article 9, section 17, subdivision 8, is amended to
56.24read:
56.25    Subd. 8. Community education aid. For community education aid under
56.26Minnesota Statutes, section 124D.20:

56.27 56.28		$	1,307,000 1,299,000	.....	2008
56.29		$	816,000796,000	.....	2009

56.30    The 2008 appropriation includes $195,000 for 2007 and $1,112,000 $1,104,000
56.31for 2008.
56.32    The 2009 appropriation includes $123,000 $122,000 for 2008 and $693,000
56.33$674,000 for 2009.

57.1    Sec. 26. Laws 2007, chapter 146, article 9, section 17, subdivision 9, is amended to
57.2read:
57.3    Subd. 9. Adults with disabilities program aid. For adults with disabilities
57.4programs under Minnesota Statutes, section 124D.56:

57.5		$	710,000709,000	.....	2008
57.6		$	710,000	.....	2009

57.7    The 2008 appropriation includes $71,000 $70,000 for 2007 and $639,000 for 2008.
57.8    The 2009 appropriation includes $71,000 for 2008 and $639,000 for 2009.
57.9    School districts operating existing adults with disabilities programs that are not fully
57.10funded shall receive full funding for the program beginning in fiscal year 2008 before the
57.11commissioner awards grants to other districts.

57.12    Sec. 27. Laws 2007, chapter 146, article 9, section 17, subdivision 13, is amended to
57.13read:
57.14    Subd. 13. Adult basic education aid. For adult basic education aid under
57.15Minnesota Statutes, section 124D.531:

57.16 57.17		$	40,347,000 40,344,000	.....	2008
57.18 57.19		$	41,745,000 41,712,000	.....	2009

57.20    The 2008 appropriation includes $3,759,000 for 2007 and $36,588,000 $36,585,000
57.21for 2008.
57.22    The 2009 appropriation includes $4,065,000 for 2008 and $37,680,000 $37,647,000
57.23for 2009.