Providing for teacher recruitment and retention; delaying the deadline for the board of teaching to adopt rules requiring successful completion of examinations of general pedagogical knowledge and of licensure specific teaching skills for teacher licensure purposes; authorizing the board to issue substitute teacher licenses to persons enrolled and making satisfactory progress in board approved teaching programs and successfully completing student teaching; requiring college and university teacher preparation programs to include certain reading strategies; providing for teacher licensing by reciprocity; clarifying the probationary period; prohibiting the reduction of retirement benefits for retired teachers holding valid licenses and returning to teaching part time; authorizing the transfer of retirement benefits for teachers changing districts of employment; establishing the teacher loan forgiveness program in the department of children, families and learning to assist communities experiencing a shortage of teachers with recruitment and retention, establishing the teacher loan forgiveness program account for loan repayment purposes, requiring the commissioner to develop procedures to implement the program, specifying school district qualification and teacher eligibility requirements, imposing a repayment penalty on teachers failing to fulfill the length of service requirement; establishing the Minnesota new teacher project in the department to retain new teachers in the profession and to provide models for supporting professional development, specifying certain participating district project plan requirements and providing a state match; requiring the commissioner to survey school districts and report biennially to the legislature on the status of the teacher shortage; establishing a pilot program to allow school districts in collaboration with public post-secondary institutions offering approved teacher training programs to offer undergraduate and graduate teacher training opportunities, specifying district eligibility requirements, program uses and employment terms, prescribing the application process and program participant selection criteria, requiring a start up costs award, authorizing post-secondary institutions participating in the program to charge students the costs of tuition, requiring the commissioner to contract with an independent qualified expert to evaluate the impact of the pilot program on teacher efficacy and student performance and report to the commissioner and the legislature by a certain date; encouraging the Minnesota state colleges and universities and the university of Minnesota to set aside a portion of higher education teacher education resources for teacher preparation programs committed to meeting the projected teacher shortages; requiring the board of teaching to communicate with school districts on the procedures available for expediting the hiring of substitute teachers; appropriating money to MnSCU for an urban teacher preparation program at metropolitan state university and to the department for the teacher loan forgiveness and training pilot programs, for the clearinghouse of best educational practices, for the new teacher project and for teachers of color programs (mk)