1.1 	A bill for an act
1.2 	relating to education; providing for policy and funding for early childhood, 
1.3 	family, adult, and prekindergarten through grade 12 education including general 
1.4 	education, education excellence, special programs, facilities and technology, 
1.5 	nutrition and accounting, libraries, state agencies, pupil transportation standards, 
1.6 	early childhood and adult programs; education forecast adjustments, and 
1.7 	technical and conforming amendments; providing for task force and advisory 
1.8 	groups; requiring reports; authorizing rulemaking; funding parenting centers; 
1.9 	funding lead hazard reduction; appropriating money;amending Minnesota 
1.10 	Statutes 2006, sections 16A.152, subdivision 2; 119A.50, by adding a 
1.11 	subdivision; 119A.52; 119A.535; 120A.22, subdivision 7; 120B.021, subdivision 
1.12 	1; 120B.022, subdivision 1; 120B.024; 120B.12, subdivision 2; 120B.132; 
1.13 	120B.15; 120B.30; 120B.31, subdivision 3; 120B.36, subdivision 1; 121A.17, 
1.14 	subdivision 5; 122A.20, subdivision 1; 122A.61, by adding a subdivision; 
1.15 	122A.628, subdivision 2; 122A.72, subdivision 5; 123A.44; 123A.441; 
1.16 	123A.442; 123A.443; 123A.73, subdivision 8; 123B.02, by adding a subdivision; 
1.17 	123B.10, subdivision 1; 123B.143, subdivision 1; 123B.53, subdivision 1; 
1.18 	123B.54; 123B.57, subdivision 3; 123B.63, subdivision 3; 123B.77, subdivision 
1.19 	4; 123B.79, subdivisions 6, 8, by adding a subdivision; 123B.81, subdivisions 
1.20 	2, 4, 7; 123B.83, subdivision 2; 123B.88, subdivision 12; 123B.90, subdivision 
1.21 	2; 123B.92, subdivisions 1, 3; 124D.095, subdivisions 2, 3, 4, 7; 124D.10, 
1.22 	subdivisions 4, 23a, 24; 124D.111, subdivision 1; 124D.128, subdivisions 
1.23 	1, 2, 3; 124D.13, subdivisions 1, 2, 11, by adding a subdivision; 124D.135, 
1.24 	subdivisions 1, 3, 5, 6; 124D.15, subdivision 3; 124D.34, subdivision 7; 
1.25 	124D.454, subdivisions 2, 3; 124D.531, subdivisions 1, 4; 124D.65, subdivision 
1.26 	11; 124D.66, subdivision 3; 124D.84, subdivision 1; 125A.11, subdivision 1; 
1.27 	125A.13; 125A.14; 125A.39; 125A.42; 125A.44; 125A.45; 125A.50; 125A.56; 
1.28 	125A.63, by adding a subdivision; 125A.75, subdivisions 1, 4, by adding a 
1.29 	subdivision; 125A.76, subdivisions 1, 2, 4, 5, by adding a subdivision; 125A.78; 
1.30 	125A.79, subdivisions 1, 5, 6, 8; 125B.15; 126C.01, subdivision 9; 126C.05, 
1.31 	subdivision 1; 126C.10, subdivisions 2, 2b, 24, 34; 126C.126; 126C.13, 
1.32 	subdivision 4; 126C.15, subdivision 2; 126C.21, subdivisions 3, 5; 126C.41, 
1.33 	by adding a subdivision; 126C.44; 126C.48, subdivisions 2, 7; 127A.095, 
1.34 	subdivision 2; 127A.441; 127A.47, subdivision 7; 127A.49, subdivisions 2, 3; 
1.35 	128D.11, subdivision 3; 134.31, by adding a subdivision; 134.34, subdivision 
1.36 	4; 134.355, subdivision 9; 169.01, by adding a subdivision; 169.443, by adding 
1.37 	a subdivision; 169.447, subdivision 2; 169.4501, subdivisions 1, 2; 169.4502, 
1.38 	subdivision 5; 169.4503, subdivisions 13, 20; 171.02, subdivisions 2, 2a; 
1.39 	171.321, subdivision 4; 205A.05, subdivision 1; 272.02, subdivision 64; 272.029, 
2.1 	by adding a subdivision; 275.065, subdivisions 1, 1a; 517.08, subdivision 1c; 
2.2 	Laws 2005, First Special Session chapter 5, article 1, sections 50, subdivision 
2.3 	2; 54, subdivisions 2, as amended, 4, 5, as amended, 6, as amended, 7, as 
2.4 	amended, 8, as amended; article 2, sections 81, as amended; 84, subdivisions 
2.5 	2, as amended, 3, as amended, 4, as amended, 6, as amended, 10, as amended; 
2.6 	article 3, section 18, subdivisions 2, as amended, 3, as amended, 4, as amended, 
2.7 	6, as amended; article 4, section 25, subdivisions 2, as amended, 3, as amended; 
2.8 	article 5, section 17, subdivision 3, as amended; article 7, section 20, subdivisions 
2.9 	2, as amended, 3, as amended, 4, as amended; article 8, section 8, subdivisions 
2.10 	2, as amended, 5, as amended; article 9, section 4, subdivision 2; Laws 2006, 
2.11 	chapter 263, article 3, section 15; Laws 2006, chapter 282, article 2, section 
2.12 	28, subdivision 4; article 3, section 4, subdivision 2; proposing coding for new 
2.13 	law in Minnesota Statutes, chapters 119A; 124D; 127A; repealing Minnesota 
2.14 	Statutes 2006, sections 120B.233; 123A.22, subdivision 11; 123B.749; 123B.81, 
2.15 	subdivision 8; 124D.06; 124D.081, subdivisions 1, 2, 3, 4, 5, 6, 9; 124D.175; 
2.16 	124D.454, subdivisions 4, 5, 6, 7; 124D.531, subdivision 5; 124D.62; 125A.10; 
2.17 	125A.75, subdivision 6; 125A.76, subdivision 3; 169.4502, subdivision 15; 
2.18 	169.4503, subdivisions 17, 18, 26.
2.19 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

2.20 	ARTICLE 1
2.21 	GENERAL EDUCATION

2.22 	Section 1. Minnesota Statutes 2006, section 16A.152, subdivision 2, is amended to 
2.23 	read:
2.24 		Subd. 2.Additional revenues; priority. (a) If on the basis of a forecast of general 
2.25 	fund revenues and expenditures, the commissioner of finance determines that there will be 
2.26 	a positive unrestricted budgetary general fund balance at the close of the biennium, the 
2.27 	commissioner of finance must allocate money to the following accounts and purposes in 
2.28 	priority order:
2.29 	(1) the cash flow account established in subdivision 1 until that account reaches 
2.30 	$350,000,000;
2.31 	(2) the budget reserve account established in subdivision 1a until that account 
2.32 	reaches $653,000,000;
2.33 	(3) the amount necessary to increase the aid payment schedule for school district 
2.34 	aids and credits payments in section 127A.45 to not more than 90 percent rounded to the 
2.35 	nearest tenth of a percent without exceeding the amount available and with any remaining 
2.36 	funds deposited in the budget reserve; and
2.37 	(4) the amount necessary to restore all or a portion of the net aid reductions under 
2.38 	section 127A.441 and to reduce the property tax revenue recognition shift under section 
2.39 	123B.75, subdivision 5, paragraph (c) (b), and Laws 2003, First Special Session chapter 
2.40 	9, article 5, section 34, as amended by Laws 2003, First Special Session chapter 23, 
2.41 	section 20, by the same amount.
3.1 	(b) The amounts necessary to meet the requirements of this section are appropriated 
3.2 	from the general fund within two weeks after the forecast is released or, in the case of 
3.3 	transfers under paragraph (a), clauses (3) and (4), as necessary to meet the appropriations 
3.4 	schedules otherwise established in statute.
3.5 	(c) To the extent that a positive unrestricted budgetary general fund balance is 
3.6 	projected, appropriations under this section must be made before section 16A.1522 takes 
3.7 	effect.
3.8 	(d) The commissioner of finance shall certify the total dollar amount of the 
3.9 	reductions under paragraph (a), clauses (3) and (4), to the commissioner of education. The 
3.10 	commissioner of education shall increase the aid payment percentage and reduce the 
3.11 	property tax shift percentage by these amounts and apply those reductions to the current 
3.12 	fiscal year and thereafter.

3.13 	Sec. 2. Minnesota Statutes 2006, section 124D.128, subdivision 1, is amended to read:
3.14 		Subdivision 1.Program established. A learning year program provides instruction 
3.15 	throughout the year on an extended year calendar, extended school day calendar, or 
3.16 	both. A pupil may participate in the program and accelerate attainment of grade level 
3.17 	requirements or graduation requirements. A learning year program may begin after the 
3.18 	close of the regular school year in June. The program may be for students in one or more 
3.19 	grade levels from kindergarten through grade 12.

3.20 	Sec. 3. Minnesota Statutes 2006, section 124D.128, subdivision 2, is amended to read:
3.21 		Subd. 2.Commissioner designation. (a) An area learning center designated by the 
3.22 	state must be a site. An area learning center must provide services to students who meet 
3.23 	the criteria in section 124D.68 and who are enrolled in:
3.24 	(1) a district that is served by the center; or
3.25 	(2) a charter school located within the geographic boundaries of a district that is 
3.26 	served by the center.
3.27 	(b) A school district or charter school may be approved biennially by the state to 
3.28 	provide additional instructional programming that results in grade level acceleration. The 
3.29 	program must be designed so that students make grade progress during the school year 
3.30 	and graduate prior to the students' peers.
3.31 	(c) To be designated, a district, charter school, or center must demonstrate to the 
3.32 	commissioner that it will:
3.33 	(1) provide a program of instruction that permits pupils to receive instruction 
3.34 	throughout the entire year; and
4.1 	(2) develop and maintain a separate record system that, for purposes of section 
4.2 	126C.05, permits identification of membership attributable to pupils participating in the 
4.3 	program. The record system and identification must ensure that the program will not 
4.4 	have the effect of increasing the total number of pupil unitsaverage daily membership 
4.5 	attributable to an individual pupil as a result of a learning year program. The record 
4.6 	system must include the date the pupil originally enrolled in a learning year program, the 
4.7 	pupil's grade level, the date of each grade promotion, the average daily membership 
4.8 	generated in each grade level, the number of credits or standards earned, and the number 
4.9 	needed to graduate. 
4.10 	(b)(d) A student who has not completed a school district's graduation requirements 
4.11 	may continue to enroll in courses the student must complete in order to graduate until 
4.12 	the student satisfies the district's graduation requirements or the student is 21 years old, 
4.13 	whichever comes first.

4.14 	Sec. 4. Minnesota Statutes 2006, section 124D.128, subdivision 3, is amended to read:
4.15 		Subd. 3.Student planning. A district, charter school, or area learning center must 
4.16 	inform all pupils and their parents about the learning year program and that participation 
4.17 	in the program is optional. A continual learning plan must be developed at least annually 
4.18 	for each pupil with the participation of the pupil, parent or guardian, teachers, and other 
4.19 	staff; each participant must sign and date the plan. The plan must specify the learning 
4.20 	experiences that must occur during the entire fiscal year and,are necessary for grade 
4.21 	progression or, for secondary students, for graduation. The plan must include:
4.22 	(1) the pupil's learning objectives and experiences, including courses or credits the 
4.23 	pupil plans to complete each year and, for a secondary pupil, the graduation requirements 
4.24 	the student must complete;
4.25 	(2) the assessment measurements used to evaluate a pupil's objectives;
4.26 	(3) requirements for grade level or other appropriate progression; and
4.27 	(4) for pupils generating more than one average daily membership in a given grade, 
4.28 	an indication of which objectives were unmet.
4.29 	The plan may be modified to conform to district schedule changes. The district may 
4.30 	not modify the plan if the modification would result in delaying the student's time of 
4.31 	graduation.

4.32 	Sec. 5. Minnesota Statutes 2006, section 126C.05, subdivision 1, is amended to read:
4.33 		Subdivision 1.Pupil unit. Pupil units for each Minnesota resident pupil under the 
4.34 	age of 21 or who meets the requirements of section 120A.20, subdivision 1, paragraph 
5.1 	(c), in average daily membership enrolled in the district of residence, in another district 
5.2 	under sections 123A.05 to 123A.08, 124D.03, 124D.06, 124D.07, 124D.08, or 124D.68; 
5.3 	in a charter school under section 124D.10; or for whom the resident district pays tuition 
5.4 	under section 123A.18, 123A.22, 123A.30, 123A.32, 123A.44, 123A.488, 123B.88, 
5.5 	subdivision 4, 124D.04, 124D.05, 125A.03 to 125A.24, 125A.51, or 125A.65, shall be 
5.6 	counted according to this subdivision. 
5.7 	(a) A prekindergarten pupil with a disability who is enrolled in a program approved 
5.8 	by the commissioner and has an individual education plan is counted as the ratio of the 
5.9 	number of hours of assessment and education service to 825 times 1.25 with a minimum 
5.10 	average daily membership of 0.28, but not more than 1.25 pupil units. 
5.11 	(b) A prekindergarten pupil who is assessed but determined not to be disabled is 
5.12 	counted as the ratio of the number of hours of assessment service to 825 times 1.25. 
5.13 	(c) A kindergarten pupil with a disability who is enrolled in a program approved 
5.14 	by the commissioner is counted as the ratio of the number of hours of assessment and 
5.15 	education services required in the fiscal year by the pupil's individual education program 
5.16 	plan to 875, but not more than one.
5.17 	(d) A kindergarten pupil who is not included in paragraph (c) is counted as .557 of a 
5.18 	pupil unit for fiscal year 2000 and thereafter 0.612 pupil units.
5.19 	(e) A pupil who is in any of grades 1 to 3 is counted as 1.115 pupil units for fiscal 
5.20 	year 2000 and thereafter. 
5.21 	(f) A pupil who is any of grades 4 to 6 is counted as 1.06 pupil units for fiscal 
5.22 	year 1995 and thereafter. 
5.23 	(g) A pupil who is in any of grades 7 to 12 is counted as 1.3 pupil units.
5.24 	(h) A pupil who is in the postsecondary enrollment options program is counted 
5.25 	as 1.3 pupil units.

5.26 	EFFECTIVE DATE. This section is effective for revenue for fiscal year 2008.

5.27 	Sec. 6. Minnesota Statutes 2006, section 126C.10, subdivision 2, is amended to read:
5.28 		Subd. 2.Basic revenue. The basic revenue for each district equals the formula 
5.29 	allowance times the adjusted marginal cost pupil units for the school year. The formula 
5.30 	allowance for fiscal year 2005 is $4,601. The formula allowance for fiscal year 2006 is 
5.31 	$4,783. The formula allowance for fiscal year 2007 is $4,974. The formula allowance for 
5.32 	fiscal year 2008 is $5,074 and the formula allowance for fiscal year 2009 and subsequent 
5.33 	years is $4,974 $5,124.

5.34 	Sec. 7. Minnesota Statutes 2006, section 126C.10, subdivision 2b, is amended to read:
6.1 		Subd. 2b.Gifted and talented revenue. Gifted and talented revenue for each 
6.2 	district equals $4 times the district's adjusted marginal cost pupil units for fiscal year 2006 
6.3 	and $9 for fiscal year 2007 and later that school year times $12 for fiscal year 2008 and 
6.4 	later. A school district must reserve gifted and talented revenue and, consistent with 
6.5 	section 120B.15, must spend the revenue only to:
6.6 	(1) identify gifted and talented students;
6.7 	(2) provide education programs for gifted and talented students; or
6.8 	(3) provide staff development to prepare teachers to best meet the unique needs 
6.9 	of gifted and talented students.

6.10 	EFFECTIVE DATE. This section is effective for revenue for fiscal year 2008.

6.11 	Sec. 8. Minnesota Statutes 2006, section 126C.10, subdivision 24, is amended to read:
6.12 		Subd. 24.Equity revenue. (a) A school district qualifies for equity revenue if:
6.13 	(1) the school district's adjusted marginal cost pupil unit amount of basic revenue, 
6.14 	supplemental revenue, transition revenue, and referendum revenue is less than the value of 
6.15 	the school district at or immediately above the 95th percentile of school districts in its 
6.16 	equity region for those revenue categories; and
6.17 	(2) the school district's administrative offices are not located in a city of the first 
6.18 	class on July 1, 1999.
6.19 	(b) Equity revenue for a qualifying district that receives referendum revenue under 
6.20 	section 126C.17, subdivision 4, equals the product of (1) the district's adjusted marginal 
6.21 	cost pupil units for that year; times (2) the sum of (i) $13, plus (ii) $75, times the school 
6.22 	district's equity index computed under subdivision 27.
6.23 	(c) Equity revenue for a qualifying district that does not receive referendum revenue 
6.24 	under section 126C.17, subdivision 4, equals the product of the district's adjusted marginal 
6.25 	cost pupil units for that year times $13.
6.26 	(d) A school district's equity revenue is increased by the greater of zero or an amount 
6.27 	equal to the district's resident marginal cost pupil units times the difference between ten 
6.28 	percent of the statewide average amount of referendum revenue per resident marginal cost 
6.29 	pupil unit for that year and the district's referendum revenue per resident marginal cost 
6.30 	pupil unit. A school district's revenue under this paragraph must not exceed $100,000 for 
6.31 	that year.
6.32 	(e) A school district's equity revenue for a school district located in the metro equity 
6.33 	region equals the amount computed in paragraphs (b), (c), and (d) multiplied by 1.25.
7.1 	(f) For fiscal year 2007 and later, notwithstanding paragraph (a), clause (2), a school 
7.2 	district that has per pupil referendum revenue below the 95th percentile qualifies for 
7.3 	additional equity revenue equal to $46 times its adjusted marginal cost pupil unit units.
7.4 	(g) A district that does not qualify for revenue under paragraph (f) qualifies for 
7.5 	equity revenue equal to one-half of the per pupil allowance in paragraph (f) $46 times its 
7.6 	adjusted marginal cost pupil units.

7.7 	EFFECTIVE DATE. This section is effective for revenue for fiscal year 2008.

7.8 	Sec. 9. Minnesota Statutes 2006, section 126C.10, subdivision 34, is amended to read:
7.9 		Subd. 34.Basic alternative teacher compensation aid. (a) For fiscal year 2006, 
7.10 	the basic alternative teacher compensation aid for a school district or an intermediate 
7.11 	school district with a plan approved under section 122A.414, subdivision 2b, equals the 
7.12 	alternative teacher compensation revenue under section 122A.415, subdivision 1. The 
7.13 	basic alternative teacher compensation aid for a charter school with an approved plan 
7.14 	under section 122A.414, subdivision 2b, equals $260 times the number of pupils enrolled 
7.15 	in the school on October 1 of the previous school year, or on October 1 of the current 
7.16 	fiscal year for a charter school in the first year of operation.
7.17 	(b) For fiscal yearyears 2007 and later, the basic alternative teacher compensation 
7.18 	aid for a school district with a plan approved under section 122A.414, subdivision 
7.19 	2b, equals 73.165 percent of the alternative teacher compensation revenue under 
7.20 	section 122A.415, subdivision 1. The basic alternative teacher compensation aid for 
7.21 	an intermediate school district or charter school with a plan approved under section 
7.22 	122A.414, subdivisions 2a and 2b, if the recipient is a charter school, equals $260 times 
7.23 	the number of pupils enrolled in the school on October 1 of the previous fiscal year, or on 
7.24 	October 1 of the current fiscal year for a charter school in the first year of operation, times 
7.25 	the ratio of the sum of the alternative teacher compensation aid and alternative teacher 
7.26 	compensation levy for all participating school districts to the maximum alternative teacher 
7.27 	compensation revenue for those districts under section 122A.415, subdivision 1.
7.28 	(c)(b) Notwithstanding paragraphs (a) and (b) and section 122A.415, subdivision 
7.29 	1, the state total basic alternative teacher compensation aid entitlement must not exceed 
7.30 	$19,329,000 for fiscal year 2006 and $75,636,000 for fiscal year 2007 and later. The 
7.31 	commissioner must limit the amount of alternative teacher compensation aid approved 
7.32 	under section 122A.415 so as not to exceed these limits.

8.1 	Sec. 10. Minnesota Statutes 2006, section 126C.126, is amended to read:
8.2 	126C.126 REALLOCATING GENERAL EDUCATION REVENUE FOR 
8.3 	ALL-DAY KINDERGARTEN AND PREKINDERGARTEN.
8.4 	(a) In order to provide additional revenue for an optional all-day kindergarten 
8.5 	program, a district may reallocate general education revenue attributable to 12th grade 
8.6 	students who have graduated early under section 120B.07. 
8.7 	(b) A school district may spend general education revenue on extended time 
8.8 	kindergarten and prekindergarten programs.

8.9 	Sec. 11. Minnesota Statutes 2006, section 126C.13, subdivision 4, is amended to read:
8.10 		Subd. 4.General education aid. (a) For fiscal year 2006, a district's general 
8.11 	education aid is the sum of the following amounts:
8.12 	(1) general education revenue, excluding equity revenue, total operating capital, and 
8.13 	transition revenue;
8.14 	(2) operating capital aid according to section 126C.10, subdivision 13b;
8.15 	(3) equity aid according to section 126C.10, subdivision 30;
8.16 	(4) transition aid according to section 126C.10, subdivision 33;
8.17 	(5) shared time aid according to section 126C.01, subdivision 7;
8.18 	(6) referendum aid according to section 126C.17; and
8.19 	(7) online learning aid according to section 124D.096.
8.20 	(b) For fiscal yearyears 2007 and later, a district's general education aid is the 
8.21 	sum of the following amounts:
8.22 	(1) general education revenue, excluding equity revenue, total operating capital 
8.23 	revenue, alternative teacher compensation revenue, and transition revenue;
8.24 	(2) operating capital aid under section 126C.10, subdivision 13b;
8.25 	(3) equity aid under section 126C.10, subdivision 30;
8.26 	(4) alternative teacher compensation aid under section 126C.10, subdivision 36;
8.27 	(5) transition aid under section 126C.10, subdivision 33;
8.28 	(6) shared time aid under section 126C.01, subdivision 7;
8.29 	(7) referendum aid under section 126C.17, subdivisions 7 and 7a; and
8.30 	(8) online learning aid according to section 124D.096.

8.31 	Sec. 12. Minnesota Statutes 2006, section 126C.21, subdivision 3, is amended to read:
8.32 		Subd. 3.County apportionment deduction. Each year the amount of money 
8.33 	apportioned to a district for that year pursuant to section sections127A.34, subdivision 2, 
9.1 	and 272.029, subdivision 6, must be deducted from the general education aid earned by 
9.2 	that district for the same year or from aid earned from other state sources. 

9.3 	EFFECTIVE DATE. This section is effective for revenue for fiscal year 2009.

9.4 	Sec. 13. Minnesota Statutes 2006, section 126C.21, subdivision 5, is amended to read:
9.5 		Subd. 5.Adjustment for failure to meet federal maintenance of effort. (a) The 
9.6 	general education aid paid to a school district or charter school that failed to meet federal 
9.7 	special education maintenance of effort for the previous fiscal year must be reduced by the 
9.8 	amount that must be paid to the federal government due to the shortfall. 
9.9 	(b) The general education aid paid to school districts that were members of a 
9.10 	cooperative that failed to meet federal special education maintenance of effort must be 
9.11 	reduced by the amount that must be paid to the federal government due to the shortfall. 
9.12 	The commissioner must apportion the aid reduction amount to the member school districts 
9.13 	based on each district's individual shortfall in maintaining effort, and on each member 
9.14 	district's proportionate share of any shortfall in expenditures made by the cooperative. 
9.15 	Each district's proportionate share of shortfall in expenditures made by the cooperative 
9.16 	must be calculated using the adjusted marginal pupil units of each member school district.
9.17 	(c) The amounts recovered under this subdivision shall be paid to the federal 
9.18 	government to meet the state's obligations resulting from the district's or, charter school's, 
9.19 	or cooperative's failure to meet federal special education maintenance of effort.

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

9.21 	Sec. 14. Minnesota Statutes 2006, section 126C.44, is amended to read:
9.22 	126C.44 SAFE SCHOOLS LEVY.
9.23 	(a) Each district may make a levy on all taxable property located within the district 
9.24 	for the purposes specified in this section. The maximum amount which may be levied for 
9.25 	all costs under this section shall be equal to $27 $30 multiplied by the district's adjusted 
9.26 	marginal cost pupil units for the school year. The proceeds of the levy must be reserved 
9.27 	and used for directly funding the following purposes or for reimbursing the cities and 
9.28 	counties who contract with the district for the following purposes: (1) to pay the costs 
9.29 	incurred for the salaries, benefits, and transportation costs of peace officers and sheriffs for 
9.30 	liaison in services in the district's schools; (2) to pay the costs for a drug abuse prevention 
9.31 	program as defined in section 609.101, subdivision 3, paragraph (e), in the elementary 
9.32 	schools; (3) to pay the costs for a gang resistance education training curriculum in the 
9.33 	district's schools; (4) to pay the costs for security in the district's schools and on school 
10.1 	property; or (5) to pay the costs for other crime prevention, drug abuse, student and staff 
10.2 	safety, voluntary opt-in suicide prevention tools, and violence prevention measures taken 
10.3 	by the school district; or (6) to pay costs for licensed school counselors, licensed school 
10.4 	nurses, licensed school social workers, licensed school psychologists, and licensed alcohol 
10.5 	and chemical dependency counselors to help provide early responses to problems. For 
10.6 	expenditures under clause (1), the district must initially attempt to contract for services to 
10.7 	be provided by peace officers or sheriffs with the police department of each city or the 
10.8 	sheriff's department of the county within the district containing the school receiving the 
10.9 	services. If a local police department or a county sheriff's department does not wish 
10.10 	to provide the necessary services, the district may contract for these services with any 
10.11 	other police or sheriff's department located entirely or partially within the school district's 
10.12 	boundaries. 
10.13 	(b) A school district that is a member of an intermediate school district may 
10.14 	include in its authority under this section the costs associated with safe schools activities 
10.15 	authorized under paragraph (a) for intermediate school district programs. This authority 
10.16 	must not exceed $10 times the adjusted marginal cost pupil units of the member districts. 
10.17 	This authority is in addition to any other authority authorized under this section. Revenue 
10.18 	raised under this paragraph must be transferred to the intermediate school district.
10.19 	(c) If a school district spends safe schools levy proceeds under paragraph (a), clause 
10.20 	(6), the district must annually certify that its total spending on services provided by the 
10.21 	employees listed in paragraph (a), clause (6), is not less than the sum of its expenditures 
10.22 	for these purposes, excluding amounts spent under this section, in the previous year plus 
10.23 	the amount spent under this section.

10.24 	EFFECTIVE DATE. This section is effective for taxes payable in 2008.

10.25 	Sec. 15. Minnesota Statutes 2006, section 127A.441, is amended to read:
10.26 	127A.441 AID REDUCTION; LEVY REVENUE RECOGNITION CHANGE.
10.27 	Each year, the state aids payable to any school district for that fiscal year that are 
10.28 	recognized as revenue in the school district's general and community service funds shall 
10.29 	be adjusted by an amount equal to (1) the amount the district recognized as revenue for the 
10.30 	prior fiscal year pursuant to section 123B.75, subdivision 5, paragraph (b) or (c), minus (2) 
10.31 	the amount the district recognized as revenue for the current fiscal year pursuant to section 
10.32 	123B.75, subdivision 5, paragraph (c) (b). For purposes of making the aid adjustments 
10.33 	under this section, the amount the district recognizes as revenue for either the prior fiscal 
10.34 	year or the current fiscal year pursuant to section 123B.75, subdivision 5, paragraph (b) 
11.1 	or (c), shall not include any amount levied pursuant to section 124D.86, subdivision 4, 
11.2 	for school districts receiving revenue under sections 124D.86, subdivision 3, clauses (1), 
11.3 	(2), and (3); 126C.41, subdivisions 1, 2, and 3, paragraphs (b), (c), and (d); 126C.43, 
11.4 	subdivision 2; 126C.457; and 126C.48, subdivision 6. Payment from the permanent 
11.5 	school fund shall not be adjusted pursuant to this section. The school district shall be 
11.6 	notified of the amount of the adjustment made to each payment pursuant to this section. 

11.7 	Sec. 16. Minnesota Statutes 2006, section 127A.47, subdivision 7, is amended to read:
11.8 		Subd. 7.Alternative attendance programs. The general education aid and special 
11.9 	education aid for districts must be adjusted for each pupil attending a nonresident district 
11.10 	under sections 123A.05 to 123A.08, 124D.03, 124D.06, 124D.08, and 124D.68. The 
11.11 	adjustments must be made according to this subdivision.
11.12 	(a) General education aid paid to a resident district must be reduced by an amount 
11.13 	equal to the referendum equalization aid attributable to the pupil in the resident district.
11.14 	(b) General education aid paid to a district serving a pupil in programs listed in this 
11.15 	subdivision must be increased by an amount equal to the greater of (1) the referendum 
11.16 	equalization aid attributable to the pupil in the nonresident district; or (2) the product of 
11.17 	the district's open enrollment concentration index, the maximum amount of referendum 
11.18 	revenue in the first tier, and the district's net open enrollment pupil units for that year. A 
11.19 	district's open enrollment concentration index equals the greater of: (i) zero, or (ii) the 
11.20 	lesser of 1.0, or the difference between the district's ratio of open enrollment pupil units 
11.21 	served to its resident pupil units for that year and 0.2. This clause does not apply to a 
11.22 	school district where more than 50 percent of the open enrollment students are enrolled 
11.23 	solely in online learning courses.
11.24 	(c) If the amount of the reduction to be made from the general education aid of the 
11.25 	resident district is greater than the amount of general education aid otherwise due the 
11.26 	district, the excess reduction must be made from other state aids due the district.
11.27 	(d) For fiscal year 2006, the district of residence must pay tuition to a district or an 
11.28 	area learning center, operated according to paragraph (f), providing special instruction and 
11.29 	services to a pupil with a disability, as defined in section 125A.02, or a pupil, as defined in 
11.30 	section 125A.51, who is enrolled in a program listed in this subdivision. The tuition must 
11.31 	be equal to (1) the actual cost of providing special instruction and services to the pupil, 
11.32 	including a proportionate amount for special transportation and unreimbursed building 
11.33 	lease and debt service costs for facilities used primarily for special education, minus (2) 
11.34 	if the pupil receives special instruction and services outside the regular classroom for 
11.35 	more than 60 percent of the school day, the amount of general education revenue and 
12.1 	referendum aid attributable to that pupil for the portion of time the pupil receives special 
12.2 	instruction and services outside of the regular classroom, excluding portions attributable to 
12.3 	district and school administration, district support services, operations and maintenance, 
12.4 	capital expenditures, and pupil transportation, minus (3) special education aid attributable 
12.5 	to that pupil, that is received by the district providing special instruction and services. For 
12.6 	purposes of this paragraph, general education revenue and referendum aid attributable to a 
12.7 	pupil must be calculated using the serving district's average general education revenue 
12.8 	and referendum aid per adjusted pupil unit.
12.9 	(e) For fiscal year 2007 and later, special education aid paid to a resident district 
12.10 	must be reduced by an amount equal to (1) the actual cost of providing special instruction 
12.11 	and services, including special transportation and unreimbursed building lease and debt 
12.12 	service costs for facilities used primarily for special education, for a pupil with a disability, 
12.13 	as defined in section 125A.02, or a pupil, as defined in section 125A.51, who is enrolled 
12.14 	in a program listed in this subdivision, minus (2) if the pupil receives special instruction 
12.15 	and services outside the regular classroom for more than 60 percent of the school day, 
12.16 	the amount of general education revenue and referendum aid attributable to that pupil 
12.17 	for the portion of time the pupil receives special instruction and services outside of the 
12.18 	regular classroom, excluding portions attributable to district and school administration, 
12.19 	district support services, operations and maintenance, capital expenditures, and pupil 
12.20 	transportation, minus (3) special education aid attributable to that pupil, that is received 
12.21 	by the district providing special instruction and services. For purposes of this paragraph, 
12.22 	general education revenue and referendum aid attributable to a pupil must be calculated 
12.23 	using the serving district's average general education revenue and referendum aid per 
12.24 	adjusted pupil unit. Special education aid paid to the district or cooperative providing 
12.25 	special instruction and services for the pupil, or to the fiscal agent district for a cooperative, 
12.26 	must be increased by the amount of the reduction in the aid paid to the resident district. If 
12.27 	the resident district's special education aid is insufficient to make the full adjustment, the 
12.28 	remaining adjustment shall be made to other state aids due to the district.
12.29 	(f) An area learning center operated by a service cooperative, intermediate district, 
12.30 	education district, or a joint powers cooperative may elect through the action of the 
12.31 	constituent boards to charge the resident district tuition for pupils rather than to have the 
12.32 	general education revenue paid to a fiscal agent school district. Except as provided in 
12.33 	paragraph (d) or (e), the district of residence must pay tuition equal to at least 90 percent 
12.34 	of the district average general education revenue per pupil unit minus an amount equal to 
12.35 	the product of the formula allowance according to section 126C.10, subdivision 2, times 
12.36 	.0485, calculated without basic skills revenue and transportation sparsity revenue, times 
13.1 	the number of pupil units for pupils attending the area learning center, plus the amount of 
13.2 	compensatory revenue generated by pupils attending the area learning center.

13.3 	EFFECTIVE DATE. This section is effective for revenue for fiscal year 2008.

13.4 	Sec. 17. Minnesota Statutes 2006, section 127A.49, subdivision 2, is amended to read:
13.5 		Subd. 2.Abatements. Whenever by virtue of chapter 278, sections 270C.86, 
13.6 	375.192, or otherwise, the net tax capacity or referendum market value of any district for 
13.7 	any taxable year is changed after the taxes for that year have been spread by the county 
13.8 	auditor and the local tax rate as determined by the county auditor based upon the original 
13.9 	net tax capacity is applied upon the changed net tax capacities, the county auditor shall, 
13.10 	prior to February 1 of each year, certify to the commissioner of education the amount of 
13.11 	any resulting net revenue loss that accrued to the district during the preceding year. Each 
13.12 	year, the commissioner shall pay an abatement adjustment to the district in an amount 
13.13 	calculated according to the provisions of this subdivision. This amount shall be deducted 
13.14 	from the amount of the levy authorized by section 126C.46. The amount of the abatement 
13.15 	adjustment must be the product of:
13.16 	(1) the net revenue loss as certified by the county auditor, times
13.17 	(2) the ratio of:
13.18 	(i) the sum of the amounts of the district's certified levy in the third preceding year 
13.19 	according to the following:
13.20 	(A) section 123B.57, if the district received health and safety aid according to that 
13.21 	section for the second preceding year;
13.22 	(B) section 124D.20, if the district received aid for community education programs 
13.23 	according to that section for the second preceding year;
13.24 	(C) section 124D.135, subdivision 3, if the district received early childhood family 
13.25 	education aid according to section 124D.135 for the second preceding year; and
13.26 	(D) section 126C.17, subdivision 6, if the district received referendum equalization 
13.27 	aid according to that section for the second preceding year; 
13.28 	(E) section 126C.13, if the district received general education aid according to 
13.29 	section 126C.13, subdivision 4, paragraph (b), clause (1), of that section in the second 
13.30 	preceding year;
13.31 	(F) section 126C.10, subdivision 13a, if the district received operating capital aid 
13.32 	according to section 126C.10, subdivision 13b, in the second preceding year;
13.33 	(G) section 126C.10, subdivision 29, if the district received equity aid according to 
13.34 	section 126C.10, subdivision 30, in the second preceding year;
14.1 	(H) section 126C.10, subdivision 32, if the district received transition aid according 
14.2 	to section 126C.10, subdivision 33, in the second preceding year;
14.3 	(I) section 123B.53, subdivision 5, if the district received debt service equalization 
14.4 	aid according to section 123B.53, subdivision 6, in the second preceding year;
14.5 	(J) section 124D.22, subdivision 3, if the district received school-age care aid 
14.6 	according to section 124D.22, subdivision 4, in the second preceding year;
14.7 	(K) section 123B.591, subdivision 3, if the district received deferred maintenance 
14.8 	aid according to section 123B.591, subdivision 4, in the second preceding year; and
14.9 	(L) section 126C.10, subdivision 35, if the district received alternative teacher 
14.10 	compensation equalization aid according to section 126C.10, subdivision 36, paragraph 
14.11 	(a), in the second preceding year; to
14.12 	(ii) the total amount of the district's certified levy in the third preceding December, 
14.13 	plus or minus auditor's adjustments.

14.14 	Sec. 18. Minnesota Statutes 2006, section 127A.49, subdivision 3, is amended to read:
14.15 		Subd. 3.Excess tax increment. (a) If a return of excess tax increment is made to a 
14.16 	district pursuant to sections 469.176, subdivision 2, and 469.177, subdivision 9, or upon 
14.17 	decertification of a tax increment district, the school district's aid and levy limitations 
14.18 	must be adjusted for the fiscal year in which the excess tax increment is paid under the 
14.19 	provisions of this subdivision.
14.20 	(b) An amount must be subtracted from the district's aid for the current fiscal year 
14.21 	equal to the product of:
14.22 	(1) the amount of the payment of excess tax increment to the district, times
14.23 	(2) the ratio of:
14.24 	(i) the sum of the amounts of the district's certified levy for the fiscal year in which 
14.25 	the excess tax increment is paid according to the following:
14.26 	(A) section 123B.57, if the district received health and safety aid according to that 
14.27 	section for the second preceding year;
14.28 	(B) section 124D.20, if the district received aid for community education programs 
14.29 	according to that section for the second preceding year;
14.30 	(C) section 124D.135, subdivision 3, if the district received early childhood family 
14.31 	education aid according to section 124D.135 for the second preceding year; and
14.32 	(D) section 126C.17, subdivision 6, if the district received referendum equalization 
14.33 	aid according to that section for the second preceding year; 
15.1 	(E) section 126C.13, if the district received general education aid according to 
15.2 	section 126C.13, subdivision 4, paragraph (b), clause (1), of that section in the second 
15.3 	preceding year;
15.4 	(F) section 126C.10, subdivision 13a, if the district received operating capital aid 
15.5 	according to section 126C.10, subdivision 13b, in the second preceding year;
15.6 	(G) section 126C.10, subdivision 29, if the district received equity aid according to 
15.7 	section 126C.10, subdivision 30, in the second preceding year;
15.8 	(H) section 126C.10, subdivision 32, if the district received transition aid according 
15.9 	to section 126C.10, subdivision 33, in the second preceding year;
15.10 	(I) section 123B.53, subdivision 5, if the district received debt service equalization 
15.11 	aid according to section 123B.53, subdivision 6, in the second preceding year;
15.12 	(J) section 124D.22, subdivision 3, if the district received school-age care aid 
15.13 	according to section 124D.22, subdivision 4, in the second preceding year;
15.14 	(K) section 123B.591, subdivision 3, if the district received deferred maintenance 
15.15 	aid according to section 123B.591, subdivision 4, in the second preceding year; and
15.16 	(L) section 126C.10, subdivision 35, if the district received alternative teacher 
15.17 	compensation equalization aid according to section 126C.10, subdivision 36, paragraph 
15.18 	(a), in the second preceding year; to
15.19 	(ii) the total amount of the district's certified levy for the fiscal year, plus or minus 
15.20 	auditor's adjustments.
15.21 	(c) An amount must be subtracted from the school district's levy limitation for the 
15.22 	next levy certified equal to the difference between:
15.23 	(1) the amount of the distribution of excess increment; and
15.24 	(2) the amount subtracted from aid pursuant to clause (a).
15.25 	If the aid and levy reductions required by this subdivision cannot be made to the aid 
15.26 	for the fiscal year specified or to the levy specified, the reductions must be made from 
15.27 	aid for subsequent fiscal years, and from subsequent levies. The school district must use 
15.28 	the payment of excess tax increment to replace the aid and levy revenue reduced under 
15.29 	this subdivision.
15.30 	(d) This subdivision applies only to the total amount of excess increments received 
15.31 	by a district for a calendar year that exceeds $25,000.

15.32 	Sec. 19. Minnesota Statutes 2006, section 205A.05, subdivision 1, is amended to read:
15.33 		Subdivision 1.Questions. Special elections must be held for a school district on a 
15.34 	question on which the voters are authorized by law to pass judgment. The school board 
15.35 	may on its own motion call a special election to vote on any matter requiring approval of 
16.1 	the voters of a district. Upon petition of 50 or more voters of the school district or five 
16.2 	percent of the number of voters voting at the preceding regular school district general
16.3 	election, whichever is greater, the school board shall by resolution call a special election 
16.4 	to vote on any matter requiring approval of the voters of a district. A question is carried 
16.5 	only with the majority in its favor required by law. The election officials for a special 
16.6 	election are the same as for the most recent school district general election unless changed 
16.7 	according to law. Otherwise, special elections must be conducted and the returns made 
16.8 	in the manner provided for the school district general election. A special election may 
16.9 	not be held during the 30 days before and the 30 days after the state primary, during the 
16.10 	30 days before and the 40 days after the state general election. In addition, a special 
16.11 	election may not be held during the 20 days before and the 20 days after any regularly 
16.12 	scheduled election of a municipality wholly or partially within the school district. 
16.13 	Notwithstanding any other law to the contrary, the time period in which a special election 
16.14 	must be conducted under any other law may be extended by the school board to conform 
16.15 	with the requirements of this subdivision.

16.16 	EFFECTIVE DATE. This section is effective the day following final enactment 
16.17 	and applies to petitions for special election submitted 30 days after that date and later.

16.18 	Sec. 20. Minnesota Statutes 2006, section 272.029, is amended by adding a subdivision 
16.19 	to read:
16.20 		Subd. 6a.Report to commissioner of education. The county auditor, on the first 
16.21 	Wednesday after such settlement, shall report to the commissioner the amount distributed 
16.22 	to each school district under subdivision 6.

16.23 	EFFECTIVE DATE. This section is effective July 1, 2008, for settlements made 
16.24 	during fiscal year 2009.

16.25 	Sec. 21. Laws 2005, First Special Session chapter 5, article 1, section 50, subdivision 
16.26 	2, is amended to read:
16.27 		Subd. 2.Application process. Independent School Districts Nos. 11, 
16.28 	Anoka-Hennepin; 279, Osseo; 281, Robbinsdale; 286, Brooklyn Center; 535, Rochester; 
16.29 	and 833, South Washington may submit an application to the commissioner of education 
16.30 	by August 15, 2005, for a plan to allocate compensatory revenue to school sites based 
16.31 	on student performance. The application must include a written resolution approved by 
16.32 	the school board that: (1) identifies the test results that will be used to assess student 
16.33 	performance; (2) describes the method for distribution of compensatory revenue to the 
17.1 	school sites; and (3) summarizes the evaluation procedure the district will use to determine 
17.2 	if the redistribution of compensatory revenue improves overall student performance. The 
17.3 	application must be submitted in the form and manner specified by the commissioner. The 
17.4 	commissioner must notify the selected school districts by September 1, 2005 within 90 
17.5 	days of receipt of their application.

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

17.7 	Sec. 22. Laws 2006, chapter 282, article 3, section 4, subdivision 2, is amended to read:
17.8 		Subd. 2.Onetime energy assistance aid. For onetime energy assistance aid under 
17.9 	section 3:

17.10
17.11		$
	3,495,000
	.....
	2007
 2006

17.12 	EFFECTIVE DATE. This section is effective the day following final enactment 
17.13 	and applies retroactively to fiscal year 2006.

17.14 	Sec. 23. SCHOOL FINANCE REFORM; TASK FORCE ESTABLISHED.
 17.15 		Subdivision 1.Task force established. A School Finance Reform Task Force 
17.16 	is established.
17.17 		Subd. 2.Task force goals. The goals of the School Finance Reform Task Force 
17.18 	include:
17.19 	(1) creating a standard and index to ensure that the formula remains adequate over 
17.20 	time;
17.21 	(2) simplifying the remaining school formulas;
17.22 	(3) analyzing categorical funding formulas, including but not limited to pupil 
17.23 	transportation, compensatory revenue, and limited English proficiency revenue;
17.24 	(4) establishing a schedule for implementation of the other new formulas; and
17.25 	(5) examining the role of the regional delivery structure including the functions 
17.26 	performed by intermediate school districts, service cooperatives, education districts, and 
17.27 	other cooperative organizations.
17.28 		Subd. 3.Task force members. The task force consists of nine members. 
17.29 	Membership includes the commissioner of education, four members appointed according 
17.30 	to the rules of the senate by the senate Committee on Rules and Administration 
17.31 	Subcommittee on Committees, and four members appointed by the speaker of the house.
18.1 		Subd. 4.Task force recommendations. The task force must submit a report to the 
18.2 	education committees of the legislature by January 15, 2008, describing the formula 
18.3 	recommendations according to the goals it has established.

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

18.5 	Sec. 24. APPROPRIATIONS.
 18.6 		Subdivision 1.Department of Education. The sums indicated in this section are 
18.7 	appropriated from the general fund to the Department of Education for the fiscal years 
18.8 	designated.
18.9 		Subd. 2.General education aid. For general education aid under Minnesota 
18.10 	Statutes, section 126C.13, subdivision 4:

18.11		$
	 5,618,342,000
	.....
	2008
	
18.12		$
	 5,618,342,000
	.....
	2009
	
18.13 	The 2008 appropriation includes $531,733,000 for 2007 and $5,073,250,000 for 
18.14 	2008.
18.15 	The 2009 appropriation includes $546,314,000 for 2008 and $5,072,028,000 for 
18.16 	2009.
18.17 		Subd. 3.Referendum tax base replacement aid. For referendum tax base 
18.18 	replacement aid under Minnesota Statutes, section 126C.17, subdivision 7a:

18.19		$
	870,000
	.....
	2008
	
18.20 	The 2008 appropriation includes $870,000 for 2007 and $0 for 2008.
18.21 		Subd. 4.Enrollment options transportation. For transportation of pupils attending 
18.22 	postsecondary institutions under Minnesota Statutes, section 124D.09, or for transportation 
18.23 	of pupils attending nonresident districts under Minnesota Statutes, section 124D.03:

18.24		$
	95,000
	.....
	2008
	
18.25		$
	97,000
	.....
	2009
	
18.26 		Subd. 5.Abatement revenue. For abatement aid under Minnesota Statutes, section 
18.27 	127A.49:

18.28		$
	1,343,000
	.....
	2008
	
18.29		$
	1,347,000
	.....
	2009
	
18.30 	The 2008 appropriation includes $76,000 for 2007 and $1,267,000 for 2008.
18.31 	The 2009 appropriation includes $140,000 for 2008 and $1,207,000 for 2009.
19.1 		Subd. 6.Consolidation transition. For districts consolidating under Minnesota 
19.2 	Statutes, section 123A.485:

19.3		$
	565,000
	.....
	2008
	
19.4		$
	212,000
	.....
	2009
	
19.5 	The 2008 appropriation includes $43,000 for 2007 and $522,000 for 2008.
19.6 	The 2009 appropriation includes $57,000 for 2008 and $155,000 for 2009.
19.7 		Subd. 7.Nonpublic pupil education aid. For nonpublic pupil education aid under 
19.8 	Minnesota Statutes, sections 123B.40 to 123B.43, and 123B.87:

19.9		$
	 16,290,000
	.....
	2008
	
19.10		$
	 16,620,000
	.....
	2009
	
19.11 	The 2008 appropriation includes $1,606,000 for 2007 and $14,684,000 for 2008.
19.12 	The 2009 appropriation includes $1,631,000 for 2008 and $14,989,000 for 2009.
19.13 		Subd. 8.Nonpublic pupil transportation. For nonpublic pupil transportation aid 
19.14 	under Minnesota Statutes, section 123B.92, subdivision 9:

19.15		$
	 21,551,000
	.....
	2008
	
19.16		$
	 21,392,000
	.....
	2009
	
19.17 	The 2008 appropriation includes $2,124,000 for 2007 and $19,427,000 for 2008.
19.18 	The 2009 appropriation includes $2,158,000 for 2008 and $19,234,000 for 2009.
19.19 		Subd. 9.One-room schoolhouse. For a grant to Independent School District No. 
19.20 	690, Warroad, to operate the Angle Inlet School:

19.21		$
	65,000
	.....
	2008
	
19.22		$
	65,000
	.....
	2009
	
19.23 		Subd. 10.Compensatory revenue pilot project. For grants for participation in the 
19.24 	compensatory revenue pilot program under Laws 2005, First Special Session chapter 5, 
19.25 	article 1, section 50:

19.26		$
	2,175,000
	.....
	2008
	
19.27		$
	2,175,000
	.....
	2009
	
19.28 	Of this amount, $1,500,000 in each year is for a grant to Independent School District 
19.29 	No. 11, Anoka-Hennepin; $210,000 in each year is for a grant to Independent School 
19.30 	District No. 279, Osseo; $160,000 in each year is for a grant to Independent School 
19.31 	District No. 281, Robbinsdale; $75,000 in each year is for a grant to Independent School 
19.32 	District No. 286, Brooklyn Center; $165,000 in each year is for a grant to Independent 
20.1 	School District No. 535, Rochester; and $65,000 in each year is for a grant to Independent 
20.2 	School District No. 833, South Washington.
20.3 	If a grant to a specific school district is not awarded, the commissioner may increase 
20.4 	the aid amounts to any of the remaining participating school districts.
20.5 	This appropriation is part of the base budget for subsequent fiscal years.
20.6 		Subd. 11.Declining pupil unit aid; Browns Valley. For declining pupil unit aid 
20.7 	to Independent School District No. 801, Browns Valley:

20.8		$
	 100,000
	.....
	2008
	
20.9		$
	 100,000
	.....
	2009
	
20.10 	This is a onetime appropriation.
20.11 		Subd. 12.Education finance study. For a contract to hire an independent contractor 
20.12 	to assist the education finance task force:

20.13		$
	75,000
	.....
	2008
	
20.14 	This is a onetime appropriation.
20.15 		Subd. 13.Declining pupil aid, Red Lake. For a grant to Independent School 
20.16 	District No. 38, Red Lake, for declining pupil aid:

20.17		$
	455,000
	.....
	2008
	
20.18		$
	50,000
	.....
	2009
	
20.19 		Subd. 14.Declining pupil aid McGregor. For declining pupil aid for Independent 
20.20 	School District No. 4, McGregor:

20.21		$
	100,000
	.....
	2008
	
20.22 	Any balance in the first year does not cancel but is available in the second year.

20.23 	Sec. 25. REVISOR'S INSTRUCTION.
 20.24 	In Minnesota Statutes, the revisor of statutes shall correct any incorrect 
20.25 	cross-references resulting from the repeal of Minnesota Statutes, section 124D.06.

20.26 	Sec. 26.  REPEALER.
 20.27 	(a) Minnesota Statutes 2006, section 124D.06, is repealed.
20.28 	(b) Minnesota Statutes 2006, section 124D.081, subdivisions 1, 2, 3, 4, 5, 6, and 
20.29 	9, are repealed effective for revenue for fiscal year 2010.

21.1 	ARTICLE 2
21.2 	EDUCATION EXCELLENCE

21.3 	Section 1. Minnesota Statutes 2006, section 119A.50, is amended by adding a 
21.4 	subdivision to read:
21.5 		Subd. 3.Early childhood literacy programs. (a) A research-based early childhood 
21.6 	literacy program premised on actively involved parents, ongoing professional staff 
21.7 	development, and high quality early literacy program standards is established to increase 
21.8 	the literacy skills of children participating in Head Start to prepare them to be successful 
21.9 	readers and to increase families' participation in providing early literacy experiences to 
21.10 	their children. Program providers must:
21.11 	(1) work to prepare children to be successful learners;
21.12 	(2) work to close the achievement gap for at-risk children;
21.13 	(3) use an integrated approach to early literacy that daily offers a literacy-rich 
21.14 	classroom learning environment composed of books, writing materials, writing centers, 
21.15 	labels, rhyming, and other related literacy materials and opportunities;
21.16 	(4) support children's home language while helping the children master English and 
21.17 	use multiple literacy strategies to provide a cultural bridge between home and school;
21.18 	(5) use literacy mentors, ongoing literacy groups, and other teachers and staff to 
21.19 	provide appropriate, extensive professional development opportunities in early literacy 
21.20 	and classroom strategies for preschool teachers and other preschool staff;
21.21 	(6) use ongoing data-based assessments that enable preschool teachers to understand, 
21.22 	plan, and implement literacy strategies, activities, and curriculum that meet children's 
21.23 	literacy needs and continuously improve children's literacy; and
21.24 	(7) foster participation by parents, community stakeholders, literacy advisors, and 
21.25 	evaluation specialists. 
21.26 	Program providers are encouraged to collaborate with qualified, community-based 
21.27 	early childhood providers in implementing this program and to seek nonstate funds to 
21.28 	supplement the program.
21.29 	(b) Program providers under paragraph (a) interested in extending literacy programs 
21.30 	to children in kindergarten through grade 3 may elect to form a partnership with an 
21.31 	eligible organization under section 124D.38, subdivision 2, or 124D.42, subdivision 6, 
21.32 	clause (3), schools enrolling children in kindergarten through grade 3, and other interested 
21.33 	and qualified community-based entities to provide ongoing literacy programs that offer 
21.34 	seamless literacy instruction focused on closing the literacy achievement gap. To close the 
21.35 	literacy achievement gap by the end of third grade, partnership members must agree to use 
22.1 	best efforts and practices and to work collaboratively to implement a seamless literacy 
22.2 	model from age three to grade 3, consistent with paragraph (a). Literacy programs under 
22.3 	this paragraph must collect and use literacy data to:
22.4 	(1) evaluate children's literacy skills; and
22.5 	(2) formulate specific intervention strategies to provide reading instruction to 
22.6 	children premised on the outcomes of formative and summative assessments and 
22.7 	research-based indicators of literacy development.
22.8 	The literacy programs under this paragraph also must train teachers and other 
22.9 	providers working with children to use the assessment outcomes under clause (2) to 
22.10 	develop and use effective, long-term literacy coaching models that are specific to the 
22.11 	program providers.
22.12 	(c) The commissioner must collect and evaluate literacy data on children from age 
22.13 	three to grade 3 who participate in literacy programs under this section to determine the 
22.14 	efficacy of early literacy programs on children's success in developing the literacy skills 
22.15 	that they need for long-term academic success and the programs' success in closing the 
22.16 	literacy achievement gap. Annually by February 1, the commissioner must report to 
22.17 	the education policy and finance committees of the legislature on the ongoing impact 
22.18 	of these programs.

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

22.20 	Sec. 2. Minnesota Statutes 2006, section 120A.22, subdivision 7, is amended to read:
22.21 		Subd. 7.Education records. (a) A district, a charter school, or a nonpublic school 
22.22 	that receives services or aid under sections 123B.40 to 123B.48 from which a student is 
22.23 	transferring must transmit the student's educational records, within ten business days of a 
22.24 	request, to the district, the charter school, or the nonpublic school in which the student is 
22.25 	enrolling. Districts, charter schools, and nonpublic schools that receive services or aid 
22.26 	under sections 123B.40 to 123B.48 must make reasonable efforts to determine the district, 
22.27 	the charter school, or the nonpublic school in which a transferring student is next enrolling 
22.28 	in order to comply with this subdivision.
22.29 	(b) A closed charter school must transfer the student's educational records, within 
22.30 	ten business days of the school's closure, to the student's school district of residence 
22.31 	where the records must be retained unless the records are otherwise transferred under 
22.32 	this subdivision.
22.33 	(c) A school district, a charter school, or a nonpublic school that receives services 
22.34 	or aid under sections 123B.40 to 123B.48 that transmits a student's educational records 
22.35 	to another school district or other educational entity, charter school, or nonpublic school
23.1 	to which the student is transferring must include in the transmitted records information 
23.2 	about any formal suspension, expulsion, and exclusion disciplinary action taken as a 
23.3 	result of any incident in which the student possessed or used a dangerous weapon under 
23.4 	sections 121A.40 to 121A.56. The district, the charter school, or the nonpublic school 
23.5 	that receives services or aid under sections 123B.40 to 123B.48 must provide notice to 
23.6 	a student and the student's parent or guardian that formal disciplinary records will be 
23.7 	transferred as part of the student's educational record, in accordance with data practices 
23.8 	under chapter 13 and the Family Educational Rights and Privacy Act of 1974, United 
23.9 	States Code, title 20, section 1232(g).
23.10 	(c) (d) Notwithstanding section 138.17, a principal or chief administrative officer 
23.11 	must remove from a student's educational record and destroy a probable cause notice 
23.12 	received under section 260B.171, subdivision 5, or paragraph (d), if one year has elapsed 
23.13 	since the date of the notice and the principal or chief administrative officer has not 
23.14 	received a disposition or court order related to the offense described in the notice. This 
23.15 	paragraph does not apply if the student no longer attends the school when this one-year 
23.16 	period expires. 
23.17 	(d) (e) A principal or chief administrative officer who receives a probable cause 
23.18 	notice under section 260B.171, subdivision 5, or a disposition or court order, must include 
23.19 	a copy of that data in the student's educational records if they are transmitted to another 
23.20 	school, unless the data are required to be destroyed under paragraph (c) or section 121A.75. 

23.21 	Sec. 3. Minnesota Statutes 2006, section 120B.021, subdivision 1, is amended to read:
23.22 		Subdivision 1.Required academic standards. The following subject areas are 
23.23 	required for statewide accountability:
23.24 	(1) language arts;
23.25 	(2) mathematics;
23.26 	(3) science;
23.27 	(4) social studies, including history, geography, economics, and government and 
23.28 	citizenship;
23.29 	(5) health and physical education, for which locally developed academic standards 
23.30 	apply; and
23.31 	(6) the arts, for which statewide or locally developed academic standards apply, as 
23.32 	determined by the school district. Public elementary and middle schools must offer at least 
23.33 	three and require at least two of the following four arts areas: dance; music; theater; and 
23.34 	visual arts. Public high schools must offer at least three and require at least one of the 
23.35 	following five arts areas: media arts; dance; music; theater; and visual arts.
24.1 	The commissioner must submit proposed standards in science and social studies to 
24.2 	the legislature by February 1, 2004.
24.3 	For purposes of applicable federal law, the academic standards for language arts, 
24.4 	mathematics, and science apply to all public school students, except the very few students 
24.5 	with extreme cognitive or physical impairments for whom an individualized education 
24.6 	plan team has determined that the required academic standards are inappropriate. 
24.7 	An individualized education plan team that makes this determination must establish 
24.8 	alternative standards.
24.9 	A school district, no later than the 2007-2008 school year, must adopt graduation 
24.10 	requirements that meet or exceed state graduation requirements established in law or 
24.11 	rule. A school district that incorporates these state graduation requirements before the 
24.12 	2007-2008 school year must provide students who enter the 9th grade in or before 
24.13 	the 2003-2004 school year the opportunity to earn a diploma based on existing locally 
24.14 	established graduation requirements in effect when the students entered the 9th grade. 
24.15 	District efforts to develop, implement, or improve instruction or curriculum as a result 
24.16 	of the provisions of this section must be consistent with sections 120B.10, 120B.11, 
24.17 	and 120B.20. 
24.18 	The commissioner must include the contributions of Minnesota American Indian 
24.19 	tribes and communities as they relate to the academic standards during the review and 
24.20 	revision of the required academic standards.

24.21 	EFFECTIVE DATE. This section is effective for the 2008-2009 school year and 
24.22 	later.

24.23 	Sec. 4. Minnesota Statutes 2006, section 120B.022, subdivision 1, is amended to read:
24.24 		Subdivision 1.Elective standards. (a) A district must establish its own standards in 
24.25 	the following subject areas:
24.26 	(1) vocational and technical education; and
24.27 	(2) world languages.
24.28 	A school district must offer courses in all elective subject areas.
24.29 	(b) World languages teachers and other school staff should develop and implement 
24.30 	world languages programs that acknowledge and reinforce the language proficiency and 
24.31 	cultural awareness that non-English language speakers already possess, and encourage 
24.32 	students' proficiency in multiple world languages. Programs under this paragraph must 
24.33 	encompass indigenous American Indian languages and cultures, among other world 
25.1 	languages and cultures. The department shall consult with postsecondary institutions in 
25.2 	developing related professional development opportunities.

25.3 	Sec. 5. Minnesota Statutes 2006, section 120B.024, is amended to read:
25.4 	120B.024 GRADUATION REQUIREMENTS; COURSE CREDITS.
25.5 	(a) Students beginning 9th grade in the 2004-2005 school year and later must 
25.6 	successfully complete the following high school level course credits for graduation:
25.7 	(1) four credits of language arts;
25.8 	(2) three credits of mathematics, encompassing at least algebra, geometry, statistics, 
25.9 	and probability sufficient to satisfy the academic standard;
25.10 	(3) three credits of science, including at least one credit in biology;
25.11 	(4) three and one-half credits of social studies, encompassing at least United 
25.12 	States history, geography, government and citizenship, world history, and economics or 
25.13 	three credits of social studies encompassing at least United States history, geography, 
25.14 	government and citizenship, and world history, and one-half credit of economics taught in 
25.15 	a school's social studies, agriculture education, or business department;
25.16 	(5) one credit in the arts; and
25.17 	(6) a minimum of seven elective course credits.
25.18 	A course credit is equivalent to a student successfully completing an academic 
25.19 	year of study or a student mastering the applicable subject matter, as determined by the 
25.20 	local school district.
25.21 	(b) An agriculture science course may fulfill a science credit requirement in addition 
25.22 	to the specified science credits in biology and chemistry or physics under paragraph (a), 
25.23 	clause (3).
25.24 	(c) A career and technical education course may fulfill a science, mathematics, or 
25.25 	arts credit requirement in addition to the specified science, mathematics, or arts credits 
25.26 	under paragraph (a), clause (2), (3), or (5).

25.27 	Sec. 6. Minnesota Statutes 2006, section 120B.12, subdivision 2, is amended to read:
25.28 		Subd. 2.Identification. For the 2002-2003 school year and later, each school 
25.29 	district shall identify before the end of first grade students who are at risk of not 
25.30 	learning to read before the end of second grade. The district must use a locally adopted 
25.31 	assessment method. The district must annually report the results of the assessment to the 
25.32 	commissioner by June 1.

26.1 	Sec. 7. Minnesota Statutes 2006, section 120B.132, is amended to read:
26.2 	120B.132 RAISED ACADEMIC ACHIEVEMENT; ADVANCED 
26.3 	PLACEMENT AND INTERNATIONAL BACCALAUREATE PROGRAMS.
26.4 		Subdivision 1.Establishment; eligibility. A program is established to raise 
26.5 	kindergarten through grade 12 academic achievement through increased student 
26.6 	participation in preadvanced placement and, advanced placement, and international 
26.7 	baccalaureate programs, consistent with section 120B.13. Schools and charter schools 
26.8 	eligible to participate under this section: 
26.9 	(1) must have a three-year plan approved by the local school board to establish a new 
26.10 	international baccalaureate program leading to international baccalaureate authorization, 
26.11 	expand an existing program that leads to international baccalaureate authorization, or 
26.12 	expand an existing authorized international baccalaureate program; or
26.13 	(2) must have a three-year plan approved by the local school board to create a new or 
26.14 	expand an existing program to implement the college board advanced placement courses 
26.15 	and exams or preadvanced placement courses initiative; and 
26.16 	(2) (3) must propose to further raise students' academic achievement by: 
26.17 	(i) increasing the availability of and all students' access to advanced placement or 
26.18 	international baccalaureate courses or programs; 
26.19 	(ii) expanding the breadth of advanced placement or international baccalaureate 
26.20 	courses or programs that are available to students; 
26.21 	(iii) increasing the number and the diversity of the students who participate in 
26.22 	advanced placement or international baccalaureate courses or programs and succeed; 
26.23 	(iv) providing low-income and other disadvantaged students with increased access 
26.24 	to advanced placement or international baccalaureate courses and programs; or 
26.25 	(v) increasing the number of high school students, including low-income and other 
26.26 	disadvantaged students, who receive college credit by successfully completing advanced 
26.27 	placement or international baccalaureate courses or programs and achieving satisfactory 
26.28 	scores on related exams.
26.29 		Subd. 2.Application and review process; funding priority. (a) Charter schools 
26.30 	and school districts in which eligible schools under subdivision 1 are located may 
26.31 	apply to the commissioner, in the form and manner the commissioner determines, for 
26.32 	competitive funding to further raise students' academic achievement. The application must 
26.33 	detail the specific efforts the applicant intends to undertake in further raising students' 
26.34 	academic achievement, consistent with subdivision 1, and a proposed budget detailing 
26.35 	the district or charter school's current and proposed expenditures for advanced placement 
26.36 	or, preadvanced placement, and international baccalaureate courses and programs. The 
27.1 	proposed budget must demonstrate that the applicant's efforts will supplement but not 
27.2 	supplant any expenditures for advanced placement and preadvanced placement courses and 
27.3 	programs the applicant currently makes available to students support implementation of 
27.4 	advanced placement, preadvanced placement, and international baccalaureate courses and 
27.5 	programs. Expenditures for administration must not exceed five percent of the proposed 
27.6 	budget. The commissioner may require an applicant to provide additional information.
27.7 	(b) When reviewing applications, the commissioner must determine whether 
27.8 	the applicant satisfied all the requirements in this subdivision and subdivision 1. 
27.9 	The commissioner may give funding priority to an otherwise qualified applicant that 
27.10 	demonstrates:
27.11 	(1) a focus on developing or expanding preadvanced placement, advanced 
27.12 	placement, or international baccalaureate courses and or programs or increasing students' 
27.13 	participation in, access to, or success with the courses or programs, including the 
27.14 	participation, access, or success of low-income and other disadvantaged students;
27.15 	(2) a compelling need for access to preadvanced placement, advanced placement, or 
27.16 	international baccalaureate courses or programs;
27.17 	(3) an effective ability to actively involve local business and community 
27.18 	organizations in student activities that are integral to preadvanced placement, advanced 
27.19 	placement, or international baccalaureate courses and or programs; 
27.20 	(4) access to additional public or nonpublic funds or in-kind contributions that are 
27.21 	available for preadvanced placement, advanced placement, or international baccalaureate 
27.22 	courses or programs; or
27.23 	(5) an intent to implement activities that target low-income and other disadvantaged 
27.24 	students.
27.25 		Subd. 3.Funding; permissible funding uses. (a) The commissioner shall award 
27.26 	grants to applicant school districts and charter schools that meet the requirements of 
27.27 	subdivisions 1 and 2. The commissioner must award grants on an equitable geographical 
27.28 	basis to the extent feasible and consistent with this section. Grant awards must not exceed 
27.29 	the lesser of:
27.30 	(1) $85 times the number of pupils enrolled at the participating sites on October 
27.31 	1 of the previous fiscal year; or
27.32 	(2) the approved supplemental expenditures based on the budget submitted under 
27.33 	subdivision 2. For charter schools in their first year of operation, the maximum grant
27.34 	funding award must be calculated using the number of pupils enrolled on October 1 of 
27.35 	the current fiscal year. The commissioner may adjust the maximum grant funding award 
27.36 	computed using prior year data for changes in enrollment attributable to school closings, 
28.1 	school openings, grade level reconfigurations, or school district reorganizations between 
28.2 	the prior fiscal year and the current fiscal year.
28.3 	(b) School districts and charter schools that submit an application and receive 
28.4 	funding under this section must use the funding, consistent with the application, to:
28.5 	(1) provide teacher training and instruction to more effectively serve students, 
28.6 	including low-income and other disadvantaged students, who participate in preadvanced 
28.7 	andplacement, advanced placement, or international baccalaureate courses or programs;
28.8 	(2) further develop preadvanced placement, advanced placement, or international 
28.9 	baccalaureate courses or programs;
28.10 	(3) improve the transition between grade levels to better prepare students, including 
28.11 	low-income and other disadvantaged students, for succeeding in preadvanced placement, 
28.12 	advanced placement, or international baccalaureate courses or programs;
28.13 	(4) purchase books and supplies;
28.14 	(5) pay course or program fees;
28.15 	(6) increase students' participation in and success with preadvanced placement, 
28.16 	advanced placement, or international baccalaureate courses or programs;
28.17 	(7) expand students' access to preadvanced placement or, advanced placement, or 
28.18 	international baccalaureate courses or programs through online learning;
28.19 	(8) hire appropriately licensed personnel to teach additional advanced placement 
28.20 	or international baccalaureate courses or programs; or
28.21 	(9) engage in other activity directly related to expanding students' access to, 
28.22 	participation in, and success with preadvanced placement or, advanced placement, or 
28.23 	international baccalaureate courses and or programs, including low-income and other 
28.24 	disadvantaged students.
28.25 		Subd. 4.Annual reports. (a) Each school district and charter school that receives 
28.26 	a grant under this section annually must collect demographic and other student data to 
28.27 	demonstrate and measure the extent to which the district or charter school raised students' 
28.28 	academic achievement under this program and must report the data to the commissioner 
28.29 	in the form and manner the commissioner determines. The commissioner annually by 
28.30 	February 15 must make summary data about this program available to the education 
28.31 	policy and finance committees of the legislature.
28.32 	(b) Each school district and charter school that receives a grant under this section 
28.33 	annually must report to the commissioner, consistent with the Uniform Financial 
28.34 	Accounting and Reporting Standards, its actual expenditures for advanced placement and,
28.35 	preadvanced placement, and international baccalaureate courses and programs. The report 
28.36 	must demonstrate that the school district or charter school has maintained its effort from 
29.1 	other sources for advanced placement and, preadvanced placement, and international 
29.2 	baccalaureate courses and programs compared with the previous fiscal year, and the 
29.3 	district or charter school has expended all grant funds, consistent with its approved budget.

29.4 	EFFECTIVE DATE. This section is effective the day following final enactment 
29.5 	and applies to the 2007-2008 school year and later.

29.6 	Sec. 8. Minnesota Statutes 2006, section 120B.15, is amended to read:
29.7 	120B.15 GIFTED AND TALENTED STUDENTS PROGRAMS.
29.8 	(a) School districts may identify students, locally develop programs, provide 
29.9 	staff development, and evaluate programs to provide gifted and talented students with 
29.10 	challenging educational programs.
29.11 	(b) School districts may adopt guidelines for assessing and identifying students for 
29.12 	participation in gifted and talented programs. The guidelines should include the use of:
29.13 	(1) multiple and objective criteria; and
29.14 	(2) assessments and procedures that are valid and reliable, fair, and based on current 
29.15 	theory and research.
29.16 	(c) School districts must adopt procedures for the academic acceleration of gifted 
29.17 	and talented students. These procedures must include how the district will:
29.18 	(1) assess a student's readiness and motivation for acceleration; and
29.19 	(2) match the level, complexity, and pace of the curriculum to a student to achieve 
29.20 	the best type of academic acceleration for that student.

29.21 	Sec. 9. Minnesota Statutes 2006, section 120B.30, is amended to read:
29.22 	120B.30 STATEWIDE TESTING AND REPORTING SYSTEM.
29.23 		Subdivision 1.Statewide testing. (a) The commissioner, with advice from experts 
29.24 	with appropriate technical qualifications and experience and stakeholders, consistent with 
29.25 	subdivision 1a, shall include in the comprehensive assessment system, for each grade 
29.26 	level to be tested, state-constructed tests developed from and aligned with the state's 
29.27 	required academic standards under section 120B.021 and administered annually to all 
29.28 	students in grades 3 through 8 and at the high school level. A state-developed test in a 
29.29 	subject other than writing, developed after the 2002-2003 school year, must include both 
29.30 	machine-scoreable and constructed response questions. The commissioner shall establish 
29.31 	one or more months during which schools shall administer the tests to students each 
29.32 	school year. For students enrolled in grade 8 before the 2005-2006 school year, only 
29.33 	Minnesota basic skills tests in reading, mathematics, and writing shall fulfill students' 
30.1 	basic skills testing requirements for a passing state notation. The passing scores of the 
30.2 	state basic skills tests in reading and mathematics are the equivalent of:
30.3 	(1) 70 percent correct for students entering grade 9 in 1996; and
30.4 	(2) 75 percent correct for students entering grade 9 in 1997 and thereafter, as based 
30.5 	on the first uniform test administration of February 1998.
30.6 	(b) For students enrolled in grade 8 in the 2005-2006 school year and later, only 
30.7 	the Minnesota Comprehensive Assessments Second Edition (MCA-IIs) in reading, 
30.8 	mathematics, and writing following options shall fulfill students' academic standard state 
30.9 	graduation test requirements.:
30.10 	(1) for reading and mathematics:
30.11 	(i) obtaining an achievement level equivalent to or greater than proficient as 
30.12 	determined through a standard setting process on the Minnesota comprehensive 
30.13 	assessments in grade 10 for reading and grade 11 for mathematics or achieving a passing 
30.14 	score as determined through a standard setting process on the graduation-required 
30.15 	assessment for diploma in grade 10 for reading and grade 11 for mathematics or 
30.16 	subsequent retests;
30.17 	(ii) achieving a passing score as determined through a standard setting process on the 
30.18 	state-identified language proficiency test in reading and the mathematics test for English 
30.19 	language learners or the graduation-required assessment for diploma equivalent of those 
30.20 	assessments for students designated as English language learners;
30.21 	(iii) achieving an individual passing score on the graduation-required assessment 
30.22 	for diploma as determined by appropriate state guidelines for students with an individual 
30.23 	education plan or 504 plan;
30.24 	(iv) obtaining achievement level equivalent to or greater than proficient as 
30.25 	determined through a standard setting process on the state-identified alternate assessment 
30.26 	or assessments in grade 10 for reading and grade 11 for mathematics for students with 
30.27 	an individual education plan; or
30.28 	(v) achieving an individual passing score on the state-identified alternate assessment 
30.29 	or assessments as determined by appropriate state guidelines for students with an 
30.30 	individual education plan; and
30.31 	(2) for writing:
30.32 	(i) achieving a passing score on the graduation-required assessment for diploma;
30.33 	(ii) achieving a passing score as determined through a standard setting process on 
30.34 	the state-identified language proficiency test in writing for students designated as English 
30.35 	language learners;
31.1 	(iii) achieving an individual passing score on the graduation-required assessment 
31.2 	for diploma as determined by appropriate state guidelines for students with an individual 
31.3 	education plan or 504 plan; or
31.4 	(iv) achieving an individual passing score on the state-identified alternate assessment 
31.5 	or assessments as determined by appropriate state guidelines for students with an 
31.6 	individual education plan.
31.7 	(b) (c) The third 3rd through 8th grade and high school level test results shall 
31.8 	be available to districts for diagnostic purposes affecting student learning and district 
31.9 	instruction and curriculum, and for establishing educational accountability. The 
31.10 	commissioner must disseminate to the public the test results upon receiving those results.
31.11 	(c) (d) State tests must be constructed and aligned with state academic standards. The 
31.12 	testing process and the order of administration shall be determined by the commissioner. 
31.13 	The statewide results shall be aggregated at the site and district level, consistent with 
31.14 	subdivision 1a.
31.15 	(d) (e) In addition to the testing and reporting requirements under this section, the 
31.16 	commissioner shall include the following components in the statewide public reporting 
31.17 	system:
31.18 	(1) uniform statewide testing of all students in grades 3 through 8 and at the high 
31.19 	school level that provides appropriate, technically sound accommodations, alternate 
31.20 	assessments, or exemptions consistent with applicable federal law, only with parent or 
31.21 	guardian approval, for those very few students for whom the student's individual education 
31.22 	plan team under sections 125A.05 and 125A.06, determines that the general statewide 
31.23 	test is inappropriate for a student is incapable of taking a statewide test, or for a limited 
31.24 	English proficiency student under section 124D.59, subdivision 2, if the student has been 
31.25 	in the United States for fewer than three years;
31.26 	(2) educational indicators that can be aggregated and compared across school 
31.27 	districts and across time on a statewide basis, including average daily attendance, high 
31.28 	school graduation rates, and high school drop-out rates by age and grade level;
31.29 	(3) students' scores state results on the American College Test; and
31.30 	(4) state results from participation in the National Assessment of Educational 
31.31 	Progress so that the state can benchmark its performance against the nation and other 
31.32 	states, and, where possible, against other countries, and contribute to the national effort 
31.33 	to monitor achievement.
31.34 	(e) Districts must report exemptions under paragraph (d), clause (1), to the 
31.35 	commissioner consistent with a format provided by the commissioner.
32.1 		Subd. 1a.Statewide and local assessments; results. (a) The commissioner must 
32.2 	develop reading, mathematics, and science assessments aligned with state academic 
32.3 	standards that districts and sites must use to monitor student growth toward achieving 
32.4 	those standards. The commissioner must not develop statewide assessments for academic 
32.5 	standards in social studies, health and physical education, and the arts. The commissioner 
32.6 	must require:
32.7 	(1) annual reading and mathematics assessments in grades 3 through 8 and at the 
32.8 	high school level for the 2005-2006 school year and later; and
32.9 	(2) annual science assessments in one grade in the grades 3 through 5 span, the 
32.10 	grades 6 through 9 span, and a life sciences assessment in the grades 10 through 12 span 
32.11 	for the 2007-2008 school year and later.
32.12 	(b) The commissioner must ensure that all statewide tests administered to elementary 
32.13 	and secondary students measure students' academic knowledge and skills and not students' 
32.14 	values, attitudes, and beliefs.
32.15 	(c) Reporting of assessment results must:
32.16 	(1) provide timely, useful, and understandable information on the performance of 
32.17 	individual students, schools, school districts, and the state;
32.18 	(2) include, by the 2006-2007no later than the 2008-2009 school year, a value-added 
32.19 	component tothat is in addition to a measure for student achievement growth over time; 
32.20 	and
32.21 	(3)(i) for students enrolled in grade 8 before the 2005-2006 school year, determine 
32.22 	whether students have met the state's basic skills requirements; and
32.23 	(ii) for students enrolled in grade 8 in the 2005-2006 school year and later, determine 
32.24 	whether students have met the state's academic standards.
32.25 	(d) Consistent with applicable federal law and subdivision 1, paragraph (d), clause 
32.26 	(1), the commissioner must include appropriate, technically sound accommodations or
32.27 	alternative assessments for the very few students with disabilities for whom statewide 
32.28 	assessments are inappropriate and for students with limited English proficiency.
32.29 	(e) A school, school district, and charter school must administer statewide 
32.30 	assessments under this section, as the assessments become available, to evaluate student 
32.31 	progress in achieving the academic standards. If a state assessment is not available, a 
32.32 	school, school district, and charter school must determine locally if a student has met 
32.33 	the required academic standards. A school, school district, or charter school may use a 
32.34 	student's performance on a statewide assessment as one of multiple criteria to determine 
32.35 	grade promotion or retention. A school, school district, or charter school may use a high 
33.1 	school student's performance on a statewide assessment as a percentage of the student's 
33.2 	final grade in a course, or place a student's assessment score on the student's transcript.
33.3 		Subd. 2.Department of Education assistance. The Department of Education 
33.4 	shall contract for professional and technical services according to competitive bidding 
33.5 	procedures under chapter 16C for purposes of this section.
33.6 		Subd. 3.Reporting. The commissioner shall report test data publicly and to 
33.7 	stakeholders, including the three performance baselines performance achievement levels
33.8 	developed from students' unweighted mean test scores in each tested subject and a listing of 
33.9 	demographic factors that strongly correlate with student performance. The commissioner 
33.10 	shall also report data that compares performance results among school sites, school 
33.11 	districts, Minnesota and other states, and Minnesota and other nations. The commissioner 
33.12 	shall disseminate to schools and school districts a more comprehensive report containing 
33.13 	testing information that meets local needs for evaluating instruction and curriculum.
33.14 		Subd. 4.Access to tests. The commissioner must adopt and publish a policy 
33.15 	to provide public and parental access for review of basic skills tests, Minnesota 
33.16 	Comprehensive Assessments, or any other such statewide test and assessment. Upon 
33.17 	receiving a written request, the commissioner must make available to parents or guardians 
33.18 	a copy of their student's actual answer sheet responses to the test questions to be reviewed 
33.19 	by the parent.

33.20 	Sec. 10. Minnesota Statutes 2006, section 120B.31, subdivision 3, is amended to read:
33.21 		Subd. 3.Educational accountability. (a) The Independent Office of Educational 
33.22 	Accountability, as authorized by Laws 1997, First Special Session chapter 4, article 5, 
33.23 	section 28, subdivision 2, is established, and shall be funded through the Board of Regents 
33.24 	of the University of Minnesota. The office shall advise the education committees of 
33.25 	the legislature and the commissioner of education, at least on a biennial basis, on the 
33.26 	degree to which the statewide educational accountability and reporting system includes a 
33.27 	comprehensive assessment framework that measures school accountability for students 
33.28 	achieving the goals described in the state's results-oriented graduation rule. The office shall 
33.29 	consider determine and annually report to the legislature whether and how effectively: 
33.30 	(1) the statewide system of educational accountability utilizes multiple indicators to 
33.31 	provide valid and reliable comparative and contextual data on students, schools, districts, 
33.32 	and the state, and if not, recommend ways to improve the accountability reporting system.;
33.33 	(2) the commissioner makes statistical adjustments when reporting student data over 
33.34 	time, consistent with clause (4);
34.1 	(3) the commissioner uses indicators of student achievement growth over time 
34.2 	and a value-added assessment model that estimates the effects of the school and school 
34.3 	district on student achievement to measure school performance, consistent with section 
34.4 	120B.36, subdivision 1;
34.5 	(4) the commissioner makes data available on students who do not pass one or more 
34.6 	of the state's required GRAD tests and do not receive a diploma as a consequence, and 
34.7 	categorizes these data according to gender, race, eligibility for free or reduced lunch, and 
34.8 	English language proficiency; and
34.9 	(5) the commissioner fulfills the requirements under section 127A.095, subdivision 2.
34.10 	(b) When the office reviews the statewide educational accountability and reporting 
34.11 	system, it shall also consider:
34.12 	(1) the objectivity and neutrality of the state's educational accountability system; and
34.13 	(2) the impact of a testing program on school curriculum and student learning.

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

34.15 	Sec. 11. Minnesota Statutes 2006, section 120B.36, subdivision 1, is amended to read:
34.16 		Subdivision 1.School performance report cards. (a) The commissioner shall 
34.17 	use objective criteria based on levels of student performance to identify four to six 
34.18 	designations applicable to high and low performing public schools. The objective 
34.19 	criteria shall include report at least student academic performance, school safety, two 
34.20 	separate student-to-teacher ratios that clearly indicate the definition of teacher consistent 
34.21 	with sections 122A.06 and 122A.15 for purposes of determining these ratios, and staff 
34.22 	characteristics, with a value-added growth component added by the 2006-2007 no later 
34.23 	than the 2008-2009 school year. The report must indicate a school's adequate yearly 
34.24 	progress status, and must not set any designations applicable to high- and low-performing 
34.25 	schools due solely to adequate yearly progress status.
34.26 	(b) The commissioner shall develop, annually update, and post on the department 
34.27 	Web site school performance report cards. A school's designation must be clearly stated 
34.28 	on each school performance report card.
34.29 	(c) The commissioner must make available the first school designations and school
34.30 	performance report cards by November 2003, and during the beginning of each school 
34.31 	year thereafter.
34.32 	(d) A school or district may appeal its adequate yearly progress status in writing 
34.33 	a designation under this section to the commissioner within 30 days of receiving the 
34.34 	designation notice of its status. The commissioner's decision to uphold or deny an appeal 
34.35 	is final.
35.1 	(e) School performance report cards data are nonpublic data under section 13.02, 
35.2 	subdivision 9, until not later than ten days after the appeal procedure described in 
35.3 	paragraph (d) concludes. The department shall annually post school performance report 
35.4 	cards to its public Web site no later than September 1. 

35.5 	EFFECTIVE DATE. This section is effective the day following final enactment 
35.6 	and applies to the school performance report cards for the 2006-2007 school year and later.

35.7 	Sec. 12. Minnesota Statutes 2006, section 122A.20, subdivision 1, is amended to read:
35.8 		Subdivision 1.Grounds for revocation, suspension, or denial. (a) The Board of 
35.9 	Teaching or Board of School Administrators, whichever has jurisdiction over a teacher's 
35.10 	licensure, may, on the written complaint of the school board employing a teacher, a teacher 
35.11 	organization, or any other interested person, refuse to issue, refuse to renew, suspend, or 
35.12 	revoke a teacher's license to teach for any of the following causes:
35.13 	(1) immoral character or conduct;
35.14 	(2) failure, without justifiable cause, to teach for the term of the teacher's contract;
35.15 	(3) gross inefficiency or willful neglect of duty;
35.16 	(4) failure to meet licensure requirements; or
35.17 	(5) fraud or misrepresentation in obtaining a license.
35.18 	The written complaint must specify the nature and character of the charges.
35.19 	(b) The Board of Teaching or Board of School Administrators, whichever 
35.20 	has jurisdiction over a teacher's licensure, shall refuse to issue, refuse to renew, or 
35.21 	automatically revoke a teacher's license to teach without the right to a hearing upon 
35.22 	receiving a certified copy of a conviction showing that the teacher has been convicted 
35.23 	of child abuse, as defined in section 609.185, or sexual abuse under section 609.342, 
35.24 	609.343, 609.344, 609.345, 609.3451, subdivision 3, or 617.23, subdivision 3, orusing 
35.25 	minors in a sexual performance under section 617.246, or possessing pornographic works 
35.26 	involving a minor under section 617.247, or under a similar law of another state or the 
35.27 	United States. The board shall send notice of this licensing action to the district in which 
35.28 	the teacher is currently employed. 
35.29 	(c) A person whose license to teach has been revoked, not issued, or not renewed 
35.30 	under paragraph (b), may petition the board to reconsider the licensing action if the 
35.31 	person's conviction for child abuse or sexual abuse is reversed by a final decision of the 
35.32 	Court of Appeals or the Supreme Court or if the person has received a pardon for the 
35.33 	offense. The petitioner shall attach a certified copy of the appellate court's final decision or 
35.34 	the pardon to the petition. Upon receiving the petition and its attachment, the board shall 
35.35 	schedule and hold a disciplinary hearing on the matter under section 214.10, subdivision 2, 
36.1 	unless the petitioner waives the right to a hearing. If the board finds that, notwithstanding 
36.2 	the reversal of the petitioner's criminal conviction or the issuance of a pardon, the 
36.3 	petitioner is disqualified from teaching under paragraph (a), clause (1), the board shall 
36.4 	affirm its previous licensing action. If the board finds that the petitioner is not disqualified 
36.5 	from teaching under paragraph (a), clause (1), it shall reverse its previous licensing action. 
36.6 	(d) For purposes of this subdivision, the Board of Teaching is delegated the authority 
36.7 	to suspend or revoke coaching licenses.

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

36.9 	Sec. 13. Minnesota Statutes 2006, section 122A.61, is amended by adding a 
36.10 	subdivision to read:
36.11 		Subd. 3.Coursework and training. A school district may use the revenue 
36.12 	reserved under subdivision 1 for grants to the district's teachers to pay for coursework 
36.13 	and training leading to certification as a college in the schools or concurrent enrollment 
36.14 	teacher. In order to receive a grant, the teacher must be enrolled in a program that includes 
36.15 	coursework and training focused on teaching a core subject.

36.16 	Sec. 14. Minnesota Statutes 2006, section 122A.72, subdivision 5, is amended to read:
36.17 		Subd. 5.Center functions. (a) A teacher center shall perform functions according 
36.18 	to this subdivision. The center shall assist teachers, diagnose learning needs, experiment 
36.19 	with the use of multiple instructional approaches, assess pupil outcomes, assess staff 
36.20 	development needs and plans, and teach school personnel about effective pedagogical 
36.21 	approaches. The center shall develop and produce curricula and curricular materials 
36.22 	designed to meet the educational needs of pupils being served, by applying educational 
36.23 	research and new and improved methods, practices, and techniques. The center shall 
36.24 	provide programs to improve the skills of teachers to meet the special educational needs of 
36.25 	pupils. The center shall provide programs to familiarize teachers with developments in 
36.26 	curriculum formulation and educational research, including how research can be used to 
36.27 	improve teaching skills. The center shall facilitate sharing of resources, ideas, methods, 
36.28 	and approaches directly related to classroom instruction and improve teachers' familiarity 
36.29 	with current teaching materials and products for use in their classrooms. The center shall 
36.30 	provide in-service programs.
36.31 	(b) Each teacher center must provide a professional development program to train 
36.32 	interested and highly qualified elementary, middle, and secondary teachers, selected by the 
36.33 	employing school district, to assist other teachers in that district with mathematics and 
36.34 	science curriculum, standards, and instruction so that all teachers have access to:
37.1 	(1) high quality professional development programs in mathematics and science 
37.2 	that address curriculum, instructional methods, alignment of standards, and performance 
37.3 	measurements, enhance teacher and student learning, and support state mathematics and 
37.4 	science standards; and 
37.5 	(2) research-based mathematics and science programs and instructional models 
37.6 	premised on best practices that inspire teachers and students and have practical classroom 
37.7 	application.

37.8 	EFFECTIVE DATE. This section is effective for the 2007-2008 school year and 
37.9 	later.

37.10 	Sec. 15. Minnesota Statutes 2006, section 123B.02, is amended by adding a 
37.11 	subdivision to read:
37.12 		Subd. 24.Membership in economic development, community, and civic 
37.13 	organizations. The board may authorize and pay for the membership of the school 
37.14 	district or of any district representative designated by the board in those local economic 
37.15 	development associations or other community or civic organizations that the board deems 
37.16 	appropriate.

37.17 	Sec. 16. Minnesota Statutes 2006, section 123B.143, subdivision 1, is amended to read:
37.18 		Subdivision 1.Contract; duties. All districts maintaining a classified secondary 
37.19 	school must employ a superintendent who shall be an ex officio nonvoting member of the 
37.20 	school board. The authority for selection and employment of a superintendent must be 
37.21 	vested in the board in all cases. An individual employed by a board as a superintendent 
37.22 	shall have an initial employment contract for a period of time no longer than three years 
37.23 	from the date of employment. Any subsequent employment contract must not exceed a 
37.24 	period of three years. A board, at its discretion, may or may not renew an employment 
37.25 	contract. A board must not, by action or inaction, extend the duration of an existing 
37.26 	employment contract. Beginning 365 days prior to the expiration date of an existing 
37.27 	employment contract, a board may negotiate and enter into a subsequent employment 
37.28 	contract to take effect upon the expiration of the existing contract. A subsequent contract 
37.29 	must be contingent upon the employee completing the terms of an existing contract. If a 
37.30 	contract between a board and a superintendent is terminated prior to the date specified in 
37.31 	the contract, the board may not enter into another superintendent contract with that same 
37.32 	individual that has a term that extends beyond the date specified in the terminated contract. 
37.33 	A board may terminate a superintendent during the term of an employment contract for any 
37.34 	of the grounds specified in section 122A.40, subdivision 9 or 13. A superintendent shall 
38.1 	not rely upon an employment contract with a board to assert any other continuing contract 
38.2 	rights in the position of superintendent under section 122A.40. Notwithstanding the 
38.3 	provisions of sections 122A.40, subdivision 10 or 11, 123A.32, 123A.75, or any other law 
38.4 	to the contrary, no individual shall have a right to employment as a superintendent based 
38.5 	on order of employment in any district. If two or more districts enter into an agreement for 
38.6 	the purchase or sharing of the services of a superintendent, the contracting districts have 
38.7 	the absolute right to select one of the individuals employed to serve as superintendent 
38.8 	in one of the contracting districts and no individual has a right to employment as the 
38.9 	superintendent to provide all or part of the services based on order of employment in a 
38.10 	contracting district. The superintendent of a district shall perform the following: 
38.11 	(1) visit and supervise the schools in the district, report and make recommendations 
38.12 	about their condition when advisable or on request by the board;
38.13 	(2) recommend to the board employment and dismissal of teachers;
38.14 	(3) superintend school grading practices and examinations for promotions;
38.15 	(4) make reports required by the commissioner;
38.16 	(5) by January 10, submit an annual report to the commissioner in a manner 
38.17 	prescribed by the commissioner, in consultation with school districts, identifying the 
38.18 	expenditures that the district requires to ensure an 80 percent student passage rate on the 
38.19 	basic standards test MCA-IIs taken in the eighth grade, identifying the highest student 
38.20 	passage rate the district expects it will be able to attain on the basic standards test MCA-IIs
38.21 	by grade 12, and the amount of expenditures that the district requires to attain the targeted 
38.22 	student passage rate, and how much the district is cross-subsidizing programs with special 
38.23 	education, basic skills, and general education revenue; and
38.24 	(6) perform other duties prescribed by the board.

38.25 	Sec. 17. Minnesota Statutes 2006, section 123B.92, subdivision 3, is amended to read:
38.26 		Subd. 3.Alternative attendance programs. (a) A district that enrolls nonresident 
38.27 	pupils in programs under sections 124D.03, 124D.06, 124D.08, 123A.05 to 123A.08, 
38.28 	and 124D.68, must provide authorized transportation to the pupil within the attendance 
38.29 	area for the school that the pupil attends at the same level of service that is provided to 
38.30 	resident pupils within the attendance area. The resident district need not provide or pay for 
38.31 	transportation between the pupil's residence and the district's border. 
38.32 	(b) A district may provide transportation to allow a student who attends a high-need 
38.33 	English language learner program and who resides within the transportation attendance 
38.34 	area of the program to continue in the program until the student completes the highest 
38.35 	grade level offered by the program.

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

39.2 	Sec. 18. [124D.091] CONCURRENT ENROLLMENT PROGRAM AID.
39.3 		Subdivision 1.Accreditation. To establish a uniform standard by which 
39.4 	concurrent enrollment courses and professional development activities may be measured, 
39.5 	postsecondary institutions are encouraged to apply for accreditation by the National 
39.6 	Alliance of Concurrent Enrollment Partnership.
39.7 		Subd. 2.Eligibility. A district that offers a concurrent enrollment course according 
39.8 	to an agreement under section 124D.09, subdivision 10, is eligible to receive aid for the 
39.9 	costs of providing postsecondary courses at the high school. Beginning in fiscal year 2011, 
39.10 	districts only are eligible for aid if the college or university concurrent enrollment courses 
39.11 	offered by the district are accredited by the National Alliance of Concurrent Enrollment 
39.12 	Partnership, in the process of being accredited, or are shown by clear evidence to be of 
39.13 	comparable standard to accredited courses.
39.14 		Subd. 3.Aid. An eligible district shall receive $150 per pupil enrolled in a 
39.15 	concurrent enrollment course. The money must be used to defray the cost of delivering 
39.16 	the course at the high school. The commissioner shall establish application procedures 
39.17 	and deadlines for receipt of aid payments.

39.18 	Sec. 19. Minnesota Statutes 2006, section 124D.095, subdivision 2, is amended to read:
39.19 		Subd. 2.Definitions. For purposes of this section, the following terms have the 
39.20 	meanings given them.
39.21 	(a) "Online learning" is an interactive course or program that delivers instruction 
39.22 	from a teacher to a student by computer; is combined with other traditional delivery 
39.23 	methods that include frequent student assessment and may include actual teacher contact 
39.24 	time; and meets or exceeds state academic standards.
39.25 	(b) "Online learning provider" is a school district, an intermediate school district, an 
39.26 	organization of two or more school districts operating under a joint powers agreement, or 
39.27 	a charter school located in Minnesota that provides online learning to students.
39.28 	(c) "Student" is a Minnesota resident enrolled in a school under section 120A.22, 
39.29 	subdivision 4, in kindergarten through grade 12.
39.30 	(d) "Online learning student" is a student enrolled in an online learning course or 
39.31 	program delivered by an online provider under paragraph (b).
39.32 	(e) "Enrolling district" means the school district or charter school in which a student 
39.33 	is enrolled under section 120A.22, subdivision 4, for purposes of compulsory attendance.
40.1 	(f) "Supplemental online learning" means an online course taken in place of a course 
40.2 	period during the regular school day at a local district school.
40.3 	(g) "Full-time online provider" means an enrolling school authorized by the 
40.4 	department to deliver comprehensive public education at any or all of the elementary, 
40.5 	middle, or high school levels.

40.6 	Sec. 20. Minnesota Statutes 2006, section 124D.095, subdivision 3, is amended to read:
40.7 		Subd. 3.Authorization; notice; limitations on enrollment. (a) A student may 
40.8 	apply to an online learning provider to enroll in online learning for full-time enrollment in 
40.9 	an approved online learning program under section 124D.03, 124D.08 or 124D.10, or for 
40.10 	supplemental online learning. Notwithstanding sections 124D.03, 124D.08, and 124D.10, 
40.11 	procedures for enrolling in online learning shall be as provided in this subdivision. A 
40.12 	student age 17 or younger must have the written consent of a parent or guardian to apply. 
40.13 	No school district or charter school may prohibit a student from applying to enroll in 
40.14 	online learning. An online learning provider that accepts a student under this section must, 
40.15 	within ten days, notify the student and the enrolling district if the enrolling district is not 
40.16 	the online learning provider. The notice must report the student's course or program and 
40.17 	hours of instruction. In order that a student may enroll in online learning, the student 
40.18 	and the student's parents must submit an application to the online learning provider and 
40.19 	identify the reason for enrolling in online learning. The online learning provider that 
40.20 	accepts a student under this section must within ten days notify the student and the 
40.21 	enrolling district in writing if the enrolling district is not the online learning provider. The 
40.22 	student and family must notify the online learning provider of their intent to enroll in 
40.23 	online learning within ten days of acceptance, at which time the student and parent must 
40.24 	sign a statement of assurance that they have reviewed the online course or program and 
40.25 	understand the expectations of online learning enrollment. The online learning provider 
40.26 	must notify the enrolling district of the student's enrollment in online learning in writing 
40.27 	on a form provided by the department.
40.28 	(b) Supplemental online learning notification to the enrolling district upon student 
40.29 	enrollment in the online learning program will include the courses or program, credits 
40.30 	to be awarded, the start date of online enrollment, and confirmation that the courses will 
40.31 	meet the student's graduation plan. A student may enroll in supplemental online learning 
40.32 	courses up to the midpoint of the enrolling district's term. The enrolling district may waive 
40.33 	this requirement for special circumstances and upon acceptance by the online provider.
40.34 	(b) An online learning student must notify the enrolling district at least 30 days 
40.35 	before taking an online learning course or program if the enrolling district is not providing 
41.1 	the online learning. (c) An online learning provider must notify the commissioner that it is 
41.2 	delivering online learning and report the number of online learning students it is accepting 
41.3 	and the online learning courses and programs it is delivering.
41.4 	(c) (d) An online learning provider may limit enrollment if the provider's school 
41.5 	board or board of directors adopts by resolution specific standards for accepting and 
41.6 	rejecting students' applications.
41.7 	(d) (e) An enrolling district may reduce an online learning student's regular 
41.8 	classroom instructional membership in proportion to the student's membership in online 
41.9 	learning courses.

41.10 	Sec. 21. Minnesota Statutes 2006, section 124D.095, subdivision 4, is amended to read:
41.11 		Subd. 4.Online learning parameters. (a) An online learning student must receive 
41.12 	academic credit for completing the requirements of an online learning course or program. 
41.13 	Secondary credits granted to an online learning student must be counted toward the 
41.14 	graduation and credit requirements of the enrolling district. An online learning provider 
41.15 	must make available to the enrolling district the course syllabus, standard alignment, 
41.16 	content outline, assessment requirements, and contact information for supplemental online 
41.17 	courses taken by students in the enrolling district. The enrolling district must apply the 
41.18 	same graduation requirements to all students, including online learning students, and 
41.19 	must continue to provide nonacademic services to online learning students. If a student 
41.20 	completes an online learning course or program that meets or exceeds a graduation 
41.21 	standard or grade progression requirement at the enrolling district, that standard or 
41.22 	requirement is met. The enrolling district must use the same criteria for accepting online 
41.23 	learning credits or courses as it does for accepting credits or courses for transfer students 
41.24 	under section 124D.03, subdivision 9. The enrolling district may reduce the teacher 
41.25 	contact timecourse schedule of an online learning student in proportion to the number 
41.26 	of online learning courses the student takes from an online learning provider that is not 
41.27 	the enrolling district.
41.28 	(b) An online learning student may:
41.29 	(1) enroll in supplemental online learning courses during a single school year in a 
41.30 	maximum of 12 semester-long courses or their equivalent delivered by an online learning 
41.31 	provider or the enrolling district to a maximum of 50 percent of the student's full schedule 
41.32 	of courses per term. A student may exceed the supplemental online learning registration 
41.33 	limit if the enrolling district grants permission for supplemental online learning enrollment 
41.34 	above the limit, or if an agreement is made between the enrolling district and the online 
41.35 	learning provider for instructional services;
42.1 	(2) complete course work at a grade level that is different from the student's current 
42.2 	grade level; and
42.3 	(3) enroll in additional courses with the online learning provider under a separate 
42.4 	agreement that includes terms for payment of any tuition or course fees.
42.5 	(c) An online learning student has the same access to the computer hardware and 
42.6 	education software available in a school as all other students in the enrolling district. An 
42.7 	online learning provider must assist an online learning student whose family qualifies 
42.8 	for the education tax credit under section 290.0674 to acquire computer hardware and 
42.9 	educational software for online learning purposes.
42.10 	(d) An enrolling district may offer online learning to its enrolled students. Such 
42.11 	online learning does not generate online learning funds under this section. An enrolling 
42.12 	district that offers online learning only to its enrolled students is not subject to the 
42.13 	reporting requirements or review criteria under subdivision 7. A teacher with a Minnesota 
42.14 	license must assemble and deliver instruction to enrolled students receiving online 
42.15 	learning from an enrolling district. The delivery of instruction occurs when the student 
42.16 	interacts with the computer or the teacher and receives ongoing assistance and assessment 
42.17 	of learning. The instruction may include curriculum developed by persons other than a 
42.18 	teacher with a Minnesota license.
42.19 	(e) An online learning provider that is not the enrolling district is subject to 
42.20 	the reporting requirements and review criteria under subdivision 7. A teacher with a 
42.21 	Minnesota license must assemble and deliver instruction to online learning students. The 
42.22 	delivery of instruction occurs when the student interacts with the computer or the teacher 
42.23 	and receives ongoing assistance and assessment of learning. The instruction may include 
42.24 	curriculum developed by persons other than a teacher with a Minnesota license. Unless 
42.25 	the commissioner grants a waiver, a teacher providing online learning instruction must not 
42.26 	instruct more than 40 students in any one online learning course or program.
42.27 	(f) To enroll in more than 50 percent of the student's full schedule of courses per term 
42.28 	in online learning, the student must qualify to exceed the supplemental online learning 
42.29 	registration limit under paragraph (b) or apply for enrollment to an approved full-time 
42.30 	online learning program following appropriate procedures in subdivision 3, paragraph (a). 
42.31 	Full-time online learning students may enroll in classes at a local school per contract for 
42.32 	instructional services between the online learning provider and the school district.

42.33 	Sec. 22. Minnesota Statutes 2006, section 124D.095, subdivision 7, is amended to read:
42.34 		Subd. 7.Department of Education. (a) The department must review and certify 
42.35 	online learning providers. The online learning courses and programs must be rigorous, 
43.1 	aligned with state academic standards, and contribute to grade progression in a single 
43.2 	subject. Online learning providers must affirm demonstrate to the commissioner that 
43.3 	online learning courses have equivalent standards or instruction, curriculum, and 
43.4 	assessment requirements as other courses offered to enrolled students. The online learning 
43.5 	provider must also demonstrate expectations for actual teacher contact time or other 
43.6 	student-to-teacher communication. Once an online learning provider is approved under 
43.7 	this paragraph, all of its online learning course offerings are eligible for payment under 
43.8 	this section unless a course is successfully challenged by an enrolling district or the 
43.9 	department under paragraph (b).
43.10 	(b) An enrolling district may challenge the validity of a course offered by an online 
43.11 	learning provider. The department must review such challenges based on the certification 
43.12 	procedures under paragraph (a). The department may initiate its own review of the validity 
43.13 	of an online learning course offered by an online learning provider.
43.14 	(c) The department may collect a fee not to exceed $250 for certifying online 
43.15 	learning providers or $50 per course for reviewing a challenge by an enrolling district.
43.16 	(d) The department must develop, publish, and maintain a list of approved online 
43.17 	learning providers and online learning courses and programs that it has reviewed and 
43.18 	certified.

43.19 	Sec. 23. Minnesota Statutes 2006, section 124D.10, subdivision 4, is amended to read:
43.20 		Subd. 4.Formation of school. (a) A sponsor may authorize one or more licensed 
43.21 	teachers under section 122A.18, subdivision 1, to operate a charter school subject to 
43.22 	approval by the commissioner. A board must vote on charter school application for 
43.23 	sponsorship no later than 90 days after receiving the application. After 90 days, the 
43.24 	applicant may apply to the commissioner. If a board elects not to sponsor a charter school, 
43.25 	the applicant may appeal the board's decision to the commissioner who may elect to assist 
43.26 	the applicant in finding an eligible sponsor. The school must be organized and operated as 
43.27 	a cooperative under chapter 308A or nonprofit corporation under chapter 317A and the 
43.28 	provisions under the applicable chapter shall apply to the school except as provided in this 
43.29 	section. Notwithstanding sections 465.717 and 465.719, a school district may create a 
43.30 	corporation for the purpose of creating a charter school.
43.31 	(b) Before the operators may form and operate a school, the sponsor must file an 
43.32 	affidavit with the commissioner stating its intent to authorize a charter school. The 
43.33 	affidavit must state the terms and conditions under which the sponsor would authorize a 
43.34 	charter school and how the sponsor intends to oversee the fiscal and student performance 
43.35 	of the charter school and to comply with the terms of the written contract between the 
44.1 	sponsor and the charter school board of directors under subdivision 6. The commissioner 
44.2 	must approve or disapprove the sponsor's proposed authorization within 90 days of 
44.3 	receipt of the affidavit. Failure to obtain commissioner approval precludes a sponsor from 
44.4 	authorizing the charter school that was the subject of the affidavit.
44.5 	(c) The operators authorized to organize and operate a school, before entering into 
44.6 	a contract or other agreement for professional or other services, goods, or facilities, 
44.7 	must incorporate as a cooperative under chapter 308A or as a nonprofit corporation 
44.8 	under chapter 317A and must establish a board of directors composed of at least five 
44.9 	members until a timely election for members of the charter school board of directors is 
44.10 	held according to the school's articles and bylaws. A charter school board of directors 
44.11 	must be composed of at least five members. Any staff members who are employed at the 
44.12 	school, including teachers providing instruction under a contract with a cooperative, and 
44.13 	all parents of children enrolled in the school may participate in the election for members 
44.14 	of the school's board of directors. Licensed teachers employed at the school, including 
44.15 	teachers providing instruction under a contract with a cooperative, must be a majority 
44.16 	of the members of the board of directors before the school completes its third year of 
44.17 	operation, unless the commissioner waives the requirement for a majority of licensed 
44.18 	teachers on the board. Board of director meetings must comply with chapter 13D.
44.19 	(d) The granting or renewal of a charter by a sponsoring entity must not be 
44.20 	conditioned upon the bargaining unit status of the employees of the school.
44.21 	(e) A sponsor may authorize the operators of a charter school to expand the 
44.22 	operation of the charter school to additional sites or to add additional grades at the school 
44.23 	beyond those described in the sponsor's application as approved by the commissioner only 
44.24 	after submitting a supplemental application to the commissioner in a form and manner 
44.25 	prescribed by the commissioner. The supplemental application must provide evidence that:
44.26 	(1) the expansion of the charter school is supported by need and projected enrollment;
44.27 	(2) the charter school is fiscally sound;
44.28 	(3) the sponsor supports the expansion; and
44.29 	(4) the building of the additional site meets all health and safety requirements to 
44.30 	be eligible for lease aid.
44.31 	(f) The commissioner annually must provide timely financial management training 
44.32 	to newly elected members of a charter school board of directors and ongoing training to 
44.33 	other members of a charter school board of directors. Training must address ways to:
44.34 	(1) proactively assess opportunities for a charter school to maximize all available 
44.35 	revenue sources;
44.36 	(2) establish and maintain complete, auditable records for the charter school;
45.1 	(3) establish proper filing techniques;
45.2 	(4) document formal actions of the charter school, including meetings of the charter 
45.3 	school board of directors;
45.4 	(5) properly manage and retain charter school and student records;
45.5 	(6) comply with state and federal payroll record-keeping requirements; and
45.6 	(7) address other similar factors that facilitate establishing and maintaining complete 
45.7 	records on the charter school's operations.

45.8 	Sec. 24. Minnesota Statutes 2006, section 124D.10, subdivision 23a, is amended to 
45.9 	read:
45.10 		Subd. 23a.Related party lease costs. (a) A charter school is prohibited from 
45.11 	entering a lease of real property with a related party as defined in this subdivision 26, unless 
45.12 	the lessor is a nonprofit corporation under chapter 317A or a cooperative under chapter 
45.13 	308A, and the lease cost is reasonable under section 124D.11, subdivision 4, clause (1). 
45.14 	(b) For purposes of this subdivision section and section 124D.11:
45.15 	(1) A "related party" is an affiliate or close relative of the other party in question, an 
45.16 	affiliate of a close relative, or a close relative of an affiliate.
45.17 	(2) "Affiliate" means a person that directly, or indirectly through one or more 
45.18 	intermediaries, controls, or is controlled by, or is under common control with, another 
45.19 	person.
45.20 	(3) "Close relative" means an individual whose relationship by blood, marriage, or 
45.21 	adoption to another individual is no more remote than first cousin.
45.22 	(4) "Person" means an individual or entity of any kind.
45.23 	(5) "Control" includes the terms "controlling," "controlled by," and "under common 
45.24 	control with" and means the possession, direct or indirect, of the power to direct or cause 
45.25 	the direction of the management, operations, or policies of a person, whether through the 
45.26 	ownership of voting securities, by contract, or otherwise.
45.27 	(c) A lease of real property to be used for a charter school, not excluded in paragraph 
45.28 	(b) (a), must contain the following statement: "This lease is subject to Minnesota Statutes, 
45.29 	section 124D.10, subdivision 23a." 
45.30 	(d) If a charter school enters into as lessee a lease with a related party and the 
45.31 	charter school subsequently closes, the commissioner has the right to recover from the 
45.32 	lessor any lease payments in excess of those that are reasonable under section 124D.11, 
45.33 	subdivision 4, clause (1). 

45.34 	Sec. 25. Minnesota Statutes 2006, section 124D.10, subdivision 24, is amended to read:
46.1 		Subd. 24.Pupil enrollment upon nonrenewal or termination of charter school 
46.2 	contract. If a contract is not renewed or is terminated according to subdivision 23, a 
46.3 	pupil who attended the school, siblings of the pupil, or another pupil who resides in the 
46.4 	same place as the pupil may enroll in the resident district or may submit an application 
46.5 	to a nonresident district according to section 124D.03 at any time. Applications and 
46.6 	notices required by section 124D.03 must be processed and provided in a prompt manner. 
46.7 	The application and notice deadlines in section 124D.03 do not apply under these 
46.8 	circumstances. The closed charter school must transfer the student's educational records 
46.9 	within ten business days of closure to the student's school district of residence where the 
46.10 	records must be retained or transferred under section 120A.22, subdivision 7.

46.11 	Sec. 26. [124D.645] MULTIRACIAL DIVERSITY.
46.12 	(a) Notwithstanding other law or rule to the contrary and in order to effectively 
46.13 	meet students' educational needs and foster parents' meaningful participation in their 
46.14 	children's education, a school district may apply to the commissioner for a waiver from 
46.15 	the requirement to maintain racial balance within a district school if the racial imbalance 
46.16 	in that school results from:
46.17 	(1) the enrollment of protected multiracial students and the proportion of enrolled 
46.18 	multiracial students reflects the proportion of multiracial students who reside in the school 
46.19 	attendance area or who are enrolled in the grade levels served by the district; or
46.20 	(2) the enrollment of limited English proficiency students in a transition program 
46.21 	that includes an intensive English component.
46.22 	The commissioner must grant the waiver if the district in which the school is located offers 
46.23 	the multiracial students or the limited English proficiency students, as appropriate, the 
46.24 	option of enrolling in another school with the requisite racial balance, and the students' 
46.25 	parents choose not to pursue that option.
46.26 	(b) This section is effective for the 2006-2007 through 2010-2011 school years or 
46.27 	until amended rules are adopted under Minnesota Rules, chapter 3535, pertaining to racial 
46.28 	diversity, whichever comes first.

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

46.30 	Sec. 27. Minnesota Statutes 2006, section 124D.66, subdivision 3, is amended to read:
46.31 		Subd. 3.Eligible services. (a) Assurance of mastery programs may provide direct 
46.32 	scientific, research-based instructional services and intervention to an eligible pupil, or a 
46.33 	group of eligible pupils, under the following conditions in paragraphs (b) to (d).
47.1 	(b) Instruction may be provided at one or more grade levels from kindergarten to 
47.2 	grade 8 and for students in grades 9 through 12 who were enrolled in grade 8 before 
47.3 	the 2005-2006 school year and have failed the basic skills tests, or were enrolled in 
47.4 	grade 8 in the 2005-2006 school year and later and who have failed the Minnesota 
47.5 	Comprehensive Assessments (MCA-IIs) in reading, mathematics, or writing as required 
47.6 	for high school graduation under section 120B.02. If an assessment of pupils' needs within 
47.7 	a district demonstrates that the eligible pupils in grades kindergarten to grade 8 are being 
47.8 	appropriately served, a district may serve eligible pupils in grades 9 to 12.
47.9 	(c) Instruction must be provided under the supervision of the eligible pupil's regular 
47.10 	classroom teacher. Instruction may be provided by the eligible pupil's classroom teacher, 
47.11 	by another teacher, by a team of teachers, or by an education assistant or aide. A special 
47.12 	education teacher may provide instruction, but instruction that is provided under this 
47.13 	section is not eligible for aid under section 125A.76.
47.14 	(d) The instruction that is provided must differ from the initial instruction the 
47.15 	pupil received in the regular classroom setting. The instruction may differ by presenting 
47.16 	different curriculum than was initially presented in the regular classroom or by presenting 
47.17 	the same curriculum:
47.18 	(1) at a different rate or in a different sequence than it was initially presented;
47.19 	(2) using different teaching methods or techniques than were used initially; or
47.20 	(3) using different instructional materials than were used initially.

47.21 	Sec. 28. Minnesota Statutes 2006, section 124D.84, subdivision 1, is amended to read:
47.22 		Subdivision 1.Awards. The commissioner may award director of the Office 
47.23 	of Higher Education shall establish procedures for the distribution of scholarships to 
47.24 	any Minnesota resident student who is of one-fourth or more Indian ancestry, who has 
47.25 	applied for other existing state and federal scholarship and grant programs, and who, in 
47.26 	the opinion of the commissioner director of the Office of Higher Education, based upon 
47.27 	postsecondary institution recommendations, has the capabilities to benefit from further 
47.28 	education. Scholarships must be for accredited degree programs in accredited Minnesota 
47.29 	colleges or universities or for courses in accredited Minnesota business, technical, or 
47.30 	vocational schools. Scholarships may also be given to students attending Minnesota 
47.31 	colleges that are in candidacy status for obtaining full accreditation, and are eligible for 
47.32 	and receiving federal financial aid programs. Students are also eligible for scholarships 
47.33 	when enrolled as students in Minnesota higher education institutions that have joint 
47.34 	programs with other accredited higher education institutions. Scholarships shall be used 
47.35 	to defray the total cost of education including tuition, incidental fees, books, supplies, 
48.1 	transportation, other related school costs and the cost of board and room and shall be paid 
48.2 	directly to the college or school concerned where the student receives federal financial 
48.3 	aid. The total cost of education includes all tuition and fees for each student enrolling in a 
48.4 	public institution and the portion of tuition and fees for each student enrolling in a private 
48.5 	institution that does not exceed the tuition and fees at a comparable public institution. 
48.6 	Each student shall be awarded a scholarship based on the total cost of the student's 
48.7 	education and a federal standardized need analysis. Applicants are encouraged to apply 
48.8 	for all other sources of financial aid.
48.9 	When an Indian student satisfactorily completes the work required by a certain 
48.10 	college or school in a school year the student is eligible for additional scholarships, if 
48.11 	additional training is necessary to reach the student's educational and vocational objective. 
48.12 	Scholarships may not be given to any Indian student for more than five years of study at 
48.13 	the undergraduate level and five years at the graduate level. Students may acquire only 
48.14 	one degree per level and one terminal degree.

48.15 	Sec. 29. [124D.8955] PARENT AND FAMILY INVOLVEMENT POLICY.
48.16 	(a) In order to promote and support student achievement, a local school board is 
48.17 	encouraged to formally adopt and implement a parent and family involvement policy that 
48.18 	promotes and supports:
48.19 	(1) communication between home and school that is regular, two-way, and 
48.20 	meaningful;
48.21 	(2) parenting skills;
48.22 	(3) parents and caregivers who play an integral role in assisting student learning and 
48.23 	learn about fostering students' academic success and learning at home and school;
48.24 	(4) welcoming parents in the school and seeking their support and assistance;
48.25 	(5) partnerships with parents in the decisions that affect children and families 
48.26 	in the schools; and
48.27 	(6) providing community resources to strengthen schools, families, and student 
48.28 	learning.
48.29 	(b) A school board that implements a parent and family involvement policy under 
48.30 	paragraph (a) must convene an advisory committee composed of an equal number of 
48.31 	resident parents who are not district employees and school staff to make recommendations 
48.32 	to the board on developing and evaluating the board's parent and family involvement 
48.33 	policy. If possible, the advisory committee must represent the diversity of the district. The 
48.34 	advisory committee must consider the district's demographic diversity and barriers to 
49.1 	parent involvement when developing its recommendations. The advisory committee must 
49.2 	present its recommendations to the board for board consideration.
49.3 	(c) The board must consider best practices when implementing this policy.
49.4 	(d) The board periodically must review this policy to determine whether it is aligned 
49.5 	with the most current research findings on parent involvement policies and practices and 
49.6 	how effective the policy is in supporting increased student achievement.
49.7 	(e) Nothing in this section obligates a school district to exceed any parent or family 
49.8 	involvement requirement under federal law.

49.9 	EFFECTIVE DATE. This section is effective for the 2008-2009 school year and 
49.10 	later.

49.11 	Sec. 30. Minnesota Statutes 2006, section 125A.50, is amended to read:
49.12 	125A.50 ALTERNATIVE DELIVERY OF SPECIALIZED INSTRUCTIONAL 
49.13 	SERVICES.
49.14 		Subdivision 1.Commissioner approval. The commissioner may approve 
49.15 	applications from districts initiating or significantly changing a program to provide 
49.16 	prevention services as an alternative to special education and other compensatory 
49.17 	programs. A district with an approved program may provide instruction and services in a 
49.18 	regular education classroom, or an area learning center, to eligible pupils. Pupils eligible 
49.19 	to participate in the program are low-performing pupils who, based on documented 
49.20 	experience, the professional judgment of a classroom teacher, or a team of licensed 
49.21 	professionals, would need additional academic or behavioral support to succeed in the 
49.22 	general education environment and who may eventually qualify for special education 
49.23 	instruction or related services under sections 125A.03 to 125A.24 and 125A.65 if the 
49.24 	intervention services authorized by this section were unavailable. Pupils may be provided 
49.25 	services during extended school days and throughout the entire year and through the 
49.26 	assurance of mastery program under sections 125A.03 to 125A.24 and 125A.65. 
49.27 		Subd. 2.Application contents. The application must set forth:
49.28 	(1) instructional services available to eligible pupils under section 124D.66, 
49.29 	subdivision 2, and pupils with a disability under section 125A.02; 
49.30 	(2) criteria to select pupils for the program and the assessment procedures to 
49.31 	determine eligibility;
49.32 	(3) involvement in the program of parents of pupils in the program, parent advocates, 
49.33 	and community special education advocates;
50.1 	(4) accounting procedures to document that federal special education money is 
50.2 	used to supplement or increase the level of special education instruction and related 
50.3 	services provided with state and local revenue, but in no case to supplant the state and 
50.4 	local revenue, and that districts are expending at least the amount for special education 
50.5 	instruction and related services required by federal law;
50.6 	(5) the role of regular general and special education teachers in planning and,
50.7 	implementing, and evaluating the program; and
50.8 	(6) an annual budget detailing program expenditures; and
50.9 	(7) other information requested by the commissioner.
50.10 		Subd. 3.Evaluation. The application must also set forth the review and evaluation 
50.11 	procedures to be used by the district addressing at least the following:
50.12 	(1) the number of pupils with and without a disability served;
50.13 	(2) the impact of the program on the academic and behavioral progress and social 
50.14 	adjustment of the pupils;
50.15 	(3) the level of satisfaction teachers, parents, and pupils have with the program;
50.16 	(4) the effect of the program on the number of referrals for special education, federal 
50.17 	chapter Title 1, and other programs; and
50.18 	(5) the amount of time spent by teachers on procedural activities;
50.19 	(6) the increased amount of time the pupil is in a regular education classroom; and
50.20 	(7) cost implications.
50.21 		Subd. 4.Budget review for excess expenditures and approval. (a) Each year 
50.22 	before a district receives aid under section 125A.78, the district must submit to the 
50.23 	commissioner for review and approval a budget detailing program expenditures for the 
50.24 	fiscal year. The commissioner must review each application to determine whether the 
50.25 	personnel, equipment, supplies, residential aid, and summer extended school year are 
50.26 	necessary to meet the district's obligation to provide special instruction and services 
50.27 	to children with a disability according to sections 125A.03 to 125A.24 and 125A.65. 
50.28 	The commissioner may not approve revenue for any expenditures determined to be 
50.29 	unnecessary. 
50.30 	(b) The commissioner must not approve budget increases under this section that 
50.31 	would cause the state to fail to meet maintenance of effort requirements under federal 
50.32 	special education law. The commissioner must establish criteria for prioritizing and 
50.33 	approving budget increases, which may include criteria such as maintaining current 
50.34 	programs, locating programs throughout the state, and developing innovative programs.
50.35 		Subd. 5.Annual report. Each year the district must submit to the commissioner a 
50.36 	report containing the information described in subdivision 3.
51.1 		Subd. 6.Pupil rights. A pupil participating in the program must be individually 
51.2 	evaluated according to the pupil's actual abilities and needs. A pupil who is eligible 
51.3 	for services under sections 125A.03 to 125A.24 and 125A.65 is entitled to procedural 
51.4 	protections provided under United States Code, title 20, section 33, in any matter that 
51.5 	affects the identification, evaluation, placement, or change in placement of a pupil. The 
51.6 	district must ensure the protection of a pupil's civil rights, provide equal educational 
51.7 	opportunities, and prohibit discrimination. Failure to comply with this subdivision will at 
51.8 	least cause a district to become ineligible to participate in the program. Notwithstanding 
51.9 	rules of the Department of Education, the commissioner cannot waive a pupil's rights 
51.10 	under this section cannot be waived by the commissioner.

51.11 	Sec. 31. Minnesota Statutes 2006, section 125A.56, is amended to read:
51.12 	125A.56 ALTERNATE INSTRUCTION REQUIRED BEFORE ASSESSMENT 
51.13 	REFERRAL; WAIVER.
51.14 		Subdivision 1.Requirement. (a) Before a pupil is referred for a special education 
51.15 	assessment evaluation, the district must conduct and document at least two instructional 
51.16 	strategies, alternatives, or interventions using a system of scientific, research-based 
51.17 	instruction and intervention in academics or behavior, based on the pupil's needs, while 
51.18 	the pupil is in the regular classroom. The pupil's teacher must provide the documentation
51.19 	document the results. A special education assessment evaluation team may waive this 
51.20 	requirement when they determine it determines the pupil's need for the assessment
51.21 	evaluation is urgent. This section may not be used to deny a pupil's right to a special 
51.22 	education assessment evaluation.
51.23 	(b) A school district shall use alternative intervention services, including the 
51.24 	assurance of mastery program under section 124D.66and, the supplemental early 
51.25 	education program under section 124D.081, or an early intervening services program 
51.26 	under subdivision 2 to serve at-risk students pupils who demonstrate a need for alternative 
51.27 	instructional strategies or interventions. 
51.28 		Subd. 2.Early intervening services program. (a) A district may meet the 
51.29 	requirement under subdivision 1 by establishing an early intervening services program 
51.30 	that includes:
51.31 	(1) a system of valid and reliable general outcome measures aligned to state academic 
51.32 	standards that is administered at least three times per year to pupils in kindergarten 
51.33 	through grade 8 who need additional academic or behavioral support to succeed in the 
51.34 	general education environment. The school must provide interim assessments that 
51.35 	measure pupils' performance three times per year and implement progress monitoring 
52.1 	appropriate to the pupil. For purposes of this section, "progress monitoring" means the 
52.2 	frequent and continuous measurement of a pupil's performance that includes these three 
52.3 	interim assessments and other pupil assessments during the school year. A school, at its 
52.4 	discretion, may allow pupils in grades 9 through 12 to participate in interim assessments;
52.5 	(2) a system of scientific, research-based instruction and intervention; and
52.6 	(3) an organizational plan that allows teachers, paraprofessionals, and volunteers 
52.7 	funded through various sources to work as a grade-level team or use another configuration 
52.8 	across grades and settings to deliver instruction. The team must be trained in scientific, 
52.9 	research-based instruction and intervention. Teachers and paraprofessionals at a site 
52.10 	operating under this paragraph must work collaboratively with those pupils who need 
52.11 	additional academic or behavioral support to succeed in a general education environment.
52.12 	(b) As an intervention under paragraph (a), clause (2), staff generating special 
52.13 	education aid under section 125A.76 may provide small group instruction to pupils who 
52.14 	need additional academic or behavioral support to succeed in the general education 
52.15 	environment. Small group instruction that includes pupils with a disability may be 
52.16 	provided in the general education environment if the needs of the pupils with a disability 
52.17 	are met, consistent with their individual education plans, and all pupils in the group 
52.18 	receive the same level of instruction and make the same progress in the instruction or 
52.19 	intervention. Teachers and paraprofessionals must ensure that the needs of pupils with a 
52.20 	disability participating in small group instruction under this paragraph remain the focus 
52.21 	of the instruction. Expenditures attributable to the time special education staff spends 
52.22 	providing instruction to nondisabled pupils in this circumstance is eligible for special 
52.23 	education aid under section 125A.76 as an incidental benefit if:
52.24 	(1) the group consists primarily of disabled pupils;
52.25 	(2) no special education staff are added to meet nondisabled pupils' needs; and
52.26 	(3) the primary purpose of the instruction is to implement the individual education 
52.27 	plans of pupils with a disability in this group.
52.28 	Expenditures attributable to the time special education staff spends providing small 
52.29 	group instruction to nondisabled pupils that affords more than an incidental benefit to such 
52.30 	pupils is not eligible for special education aid under section 125A.76, except that such 
52.31 	expenditures may be included in the alternative delivery initial aid adjustment under 
52.32 	section 125A.78 if the district has an approved program under section 125A.50. During 
52.33 	each 60-day period that a nondisabled pupil participates in small group instruction under 
52.34 	this paragraph, the pupil's progress monitoring data must be examined to determine 
52.35 	whether the pupil is making progress and, if the pupil is not making progress, the pupil's 
53.1 	intervention strategies must be changed or the pupil must be referred for a special 
53.2 	education evaluation.

53.3 	Sec. 32. Minnesota Statutes 2006, section 127A.095, subdivision 2, is amended to read:
53.4 		Subd. 2.No Child Left Behind review. (a) The legislature intends to require 
53.5 	the Department of Education to conduct a comprehensive review of the consolidated 
53.6 	state plan the state submitted to the federal Department of Education to implement the 
53.7 	No Child Left Behind Act. The Minnesota Department of Education shall seek waivers 
53.8 	under paragraph (b). If the Department of Education is unable to obtain waivers under 
53.9 	paragraph (b), it should recommend in its report under paragraph (b) whether the state 
53.10 	should opt out of the No Child Left Behind Act.
53.11 	(b) The commissioner, by January 15, 2007 2008, shall report to the house of 
53.12 	representatives and senate committees having jurisdiction over kindergarten through grade 
53.13 	12 education policy and finance whether the department has received approval from 
53.14 	the federal Department of Education to:
53.15 	(1) allow the state to develop a plan for determining adequate yearly progress that 
53.16 	uses multiple measures of student achievement that include value-added measurement of 
53.17 	student achievement in addition to standardized test results to evaluate school and student 
53.18 	performance participate in the growth model pilot program;
53.19 	(2) exclude from sanctions a school that is classified as not having made adequate 
53.20 	yearly progress due solely to different subgroups testing below proficient levels for at 
53.21 	least two consecutive years;
53.22 	(3) allow the state to average three years of data for the purposes of identifying a 
53.23 	school for improvement;
53.24 	(4) allow the state to use No Child Left Behind Act money to provide supplemental 
53.25 	education services only in the academic subject area that causes a school to miss adequate 
53.26 	yearly progress;
53.27 	(5) exclude from sanctions schools that have not made adequate yearly progress due 
53.28 	solely to a subgroup of students with disabilities not testing at a proficient level;
53.29 	(6)(3) identify a school as not making adequate yearly progress only after the school 
53.30 	has missed the adequate yearly progress targets in the same subject and subgroup for two 
53.31 	consecutive years;
53.32 	(7) limit the score of a student within multiple subgroups to the smallest subgroup in 
53.33 	which that student is included when calculating adequate yearly progress;
53.34 	(8)(4) determine when to hold schools accountable for including a student with 
53.35 	limited English proficiency in adequate yearly progress calculations; and
54.1 	(9) use a fully computer-adaptive test for purposes of compliance with the No Child 
54.2 	Left Behind Act
54.3 	(5) allow a district not making adequate yearly progress to offer supplemental 
54.4 	educational services as an option before offering school choice;
54.5 	(6) allow a district not making adequate yearly progress to also be the supplemental 
54.6 	educational services provider;
54.7 	(7) allow the state to maintain a subgroup size to 40 for the purposes of calculating 
54.8 	adequate yearly progress for subgroups of students with limited English proficiency and 
54.9 	subgroups of students with disabilities; and
54.10 	(8) create flexibility to enable the state to define and identify highly qualified 
54.11 	teachers.

54.12 	Sec. 33. Laws 2005, First Special Session chapter 5, article 2, section 81, as amended 
54.13 	by Laws 2006, chapter 263, article 2, section 20, is amended to read:
54.14 	Sec. 81. BOARD OF SCHOOL ADMINISTRATORS; RULEMAKING 
54.15 	AUTHORITY.
54.16 	(a) On or before June 30, 2007 2008, the Board of School Administrators may adopt 
54.17 	rules to reflect the changes in duties, responsibilities, and roles of school administrators 
54.18 	under sections 121A.035, 121A.037 and 299F.30, and to make technical revisions and 
54.19 	clarifications to Minnesota Rules, chapter 3512. 
54.20 	(b) Any rules the board adopts under the authority in paragraph (a) must retain the 
54.21 	requirement in effect in calendar year 2006 governing classroom teaching experience for 
54.22 	licensure as a principal.

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

54.24 	Sec. 34. RULEMAKING REQUIRED.
 54.25 	(a) Notwithstanding the time limit in Minnesota Statutes, section 14.125, the Board 
54.26 	of Teaching must adopt the rules it was mandated to adopt under Laws 2003, chapter 129, 
54.27 	article 1, section 10. The board must publish a notice of intent to adopt rules or a notice of 
54.28 	hearing for rules subject to this section before January 1, 2008. 
54.29 	(b) The Board of Teaching may charge fees to issue new credentials and to renew 
54.30 	credentials for paraprofessionals issued credentials under the rules adopted under this 
54.31 	section.

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

55.1 	Sec. 35. RULEMAKING AUTHORIZED; SUPPLEMENTAL EDUCATION 
55.2 	SERVICE PROVIDERS.
 55.3 	 Notwithstanding the two-year limit under Minnesota Statutes, section 14.388, 
55.4 	subdivision 1, clause (2), the expired Minnesota Rules 2005, part 3512.5400, governing 
55.5 	supplemental education service providers is revived and readopted without further 
55.6 	administrative action. The commissioner of education, as soon as possible, must amend 
55.7 	this rule under Minnesota Statutes 2006, section 14.389, to include specifications that 
55.8 	provide the basis for withdrawing Department of Education approval from supplemental 
55.9 	education service providers that fail to increase students' academic proficiency for two 
55.10 	consecutive school years. The amended rule must clearly indicate:
55.11 	(1) how the Department of Education will distinguish the effect of supplemental 
55.12 	education from the effect of regular school instruction on students' academic performance; 
55.13 	and
55.14 	(2) whether the Department of Education will assess effectiveness of the 
55.15 	supplemental education service providers using an absolute measure, such as percent of 
55.16 	"proficient" students or measure individual students' growth toward proficiency over time.

55.17 	EFFECTIVE DATE. This section is effective retroactive to September 15, 2005.

55.18 	Sec. 36. RULEMAKING AUTHORITY.
 55.19 	The commissioner of education shall adopt rules for implementing and administering 
55.20 	the graduation-required assessment for diploma (GRAD) in reading and mathematics 
55.21 	and in writing, consistent with Minnesota Statutes, section 120B.30, subdivision 1, and 
55.22 	for public review of the GRAD test. The rules must specify the GRAD requirements 
55.23 	that apply to students in unique circumstances including dual enrolled students, English 
55.24 	language learners, foreign exchange students, home school students, open enrollment 
55.25 	students, Minnesota postsecondary enrollment options students, shared-time students, 
55.26 	transfer students from other states, and district-placed students and students attending 
55.27 	school under a tuition agreement. The rules must establish the criteria for determining 
55.28 	individualized GRAD passing scores for students with an individual education plan or 
55.29 	a Section 504 plan and for using an alternative assessment when a student's individual 
55.30 	education plan team decides to replace the GRAD test.

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

55.32 	Sec. 37. GRANT PROGRAM TO PROMOTE PROFESSIONAL TEACHING 
55.33 	STANDARDS.
 56.1 		Subdivision 1.Establishment. A grant program to promote professional teaching 
56.2 	standards through the National Board for Professional Teaching Standards is established to 
56.3 	provide teachers with the opportunity to receive National Board for Professional Teaching 
56.4 	Standards certification and to reward teachers who have already received this certification.
56.5 		Subd. 2.Eligibility. An applicant for a grant must:
56.6 	(1) be a licensed teacher employed in a Minnesota public school;
56.7 	(2) have a minimum of five school years' classroom teaching experience; and 
56.8 	(3) demonstrate acceptance by the National Board for Professional Teaching 
56.9 	Standards as a candidate for board certification or as a recipient of board certification.
56.10 		Subd. 3.Application process. To obtain a grant to participate in the National Board 
56.11 	for Professional Teaching Standards certification process or to receive a reward for already 
56.12 	completing the board certification process, a teacher must submit an application to the 
56.13 	commissioner of education in the form and manner established by the commissioner. The 
56.14 	commissioner shall consult with the Board of Teaching when reviewing the applications. 
56.15 	The commissioner shall also provide program support to assist applicants during the 
56.16 	national board certification process.
56.17 		Subd. 4.Grant awards; proceeds. (a) The commissioner may award grants of 
56.18 	$1,000 to eligible teachers accepted as candidates for the National Board for Professional 
56.19 	Teaching Standards certification or for national board certification renewal for partial 
56.20 	payment of the teacher's candidate application fee.
56.21 	(b) The commissioner shall award grants of $3,000 to all eligible teacher applicants 
56.22 	who hold certification from the National Board for Professional Teaching Standards and 
56.23 	$2,000 for renewal of their national board certification.
56.24 	(c) The commissioner shall also award grants to eligible teachers who have received 
56.25 	National Board for Professional Teaching Standards certification within one year prior to 
56.26 	the date of the teacher's application for a grant to use for educational purposes, including 
56.27 	purchasing instructional materials, equipment, or supplies, and pursuing professional 
56.28 	development opportunities. The commissioner, under this paragraph, may award grants not 
56.29 	to exceed $1,000 after consulting with interested stakeholders regarding the grant amount. 

56.30 	Sec. 38. WORLD LANGUAGES PILOT PROGRAM GRANTS.
 56.31 	(a) A pilot program awarding five world languages grants to interested and qualified 
56.32 	school sites and school districts is established for fiscal years 2008 and 2009 to develop 
56.33 	and implement sustainable, high-quality model world languages programs and to enhance 
56.34 	existing world languages programs at various grade levels for students in kindergarten 
56.35 	through grade 12. Program participants must simultaneously support both non-English 
57.1 	language learners in maintaining their native language while mastering English and native 
57.2 	English speakers in learning other languages. 
57.3 	(b) Interested school sites and school districts must apply to the commissioner of 
57.4 	education in the form and manner the commissioner determines. The application must 
57.5 	indicate whether the applicant intends to develop a new world languages program or 
57.6 	expand an existing world languages program and whether the applicant intends to offer 
57.7 	more intensive programs or programs that are readily accessible to larger numbers of 
57.8 	students. Applicants must agree to disseminate information about their programs to 
57.9 	interested school sites and school districts.
57.10 	(c) The commissioner must award grants to qualified applicants that satisfy the 
57.11 	requirements in paragraphs (a) and (b). To the extent there are qualified applicants, the 
57.12 	commissioner must award grants to qualified applicants on an equitable geographic 
57.13 	basis to the extent feasible. The commissioner must award three grants to kindergarten 
57.14 	through grade 8 sites, one grant to a qualified site interested in developing or enhancing a 
57.15 	sustainable Mandarin Chinese program, and one grant to an indigenous American Indian 
57.16 	world languages program. Grantees must expend the grant consistent with the content of 
57.17 	their application and this section.
57.18 	(d) The commissioner shall provide for an evaluation of the grantees to identify 
57.19 	exemplary model world languages programs and the staff development needs of world 
57.20 	languages teachers and report the findings of the evaluation to the education policy and 
57.21 	finance committees of the legislature by February 15, 2010.

57.22 	EFFECTIVE DATE. This section is effective for the 2007-2008 school year.

57.23 	Sec. 39. BILINGUAL AND MULTILINGUAL CERTIFICATES; DEPARTMENT 
57.24 	OF EDUCATION.
 57.25 	The Department of Education, in consultation with interested stakeholders, must 
57.26 	develop and recommend to the legislature by February 15, 2008, the standards and process 
57.27 	for awarding bilingual and multilingual certificates to those kindergarten through grade 
57.28 	12 students who demonstrate and maintain a requisite level of proficiency in multiple 
57.29 	languages.

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

57.31 	Sec. 40. SCHOOL PERFORMANCE REPORT CARDS; ADVISORY GROUP 
57.32 	RECOMMENDATIONS.
 58.1 	(a) To sustain equity and excellence in education, the Independent Office of 
58.2 	Educational Accountability under Minnesota Statutes, section 120B.31, subdivision 3, 
58.3 	must convene and facilitate an advisory group of curriculum and measurement experts 
58.4 	to consider and recommend how to structure school performance data and school 
58.5 	performance report cards under Minnesota Statutes, section 120B.36, subdivision 1, to 
58.6 	fully, fairly, and accurately report student achievement and emphasize school excellence 
58.7 	under Minnesota's system of educational accountability and public reporting. The advisory 
58.8 	group at least must consider and recommend how to: evaluate student achievement using 
58.9 	multiple measures of growth that take into account student demographic characteristics, 
58.10 	consistent with Minnesota Statutes, section 120B.31, subdivision 4; and identify 
58.11 	outstanding schools based on student achievement and achievement growth and using 
58.12 	multiple performance measures that are objective and consistent with the highest standards 
58.13 	in the field of educational measurements and accountability. 
58.14 	(b) Advisory group members under paragraph (a) include: two qualified experts in 
58.15 	measurement in education selected by the State Council on Measurement in Education; 
58.16 	one qualified expert in elementary curriculum and one qualified expert in secondary 
58.17 	curriculum selected by the Minnesota Association for Supervision and Curriculum 
58.18 	Development; three regionally diverse school district research and evaluation directors 
58.19 	selected by the Minnesota Assessment Group; one school superintendent selected by the 
58.20 	Minnesota Association of School Administrators; one University of Minnesota faculty 
58.21 	selected by the dean of the College of Education and Human Development; one licensed 
58.22 	teacher selected by Education Minnesota; two parents selected by the Minnesota Parent 
58.23 	Teachers Association with expertise in measurement in education; and two employees 
58.24 	from the Minnesota Department of Education selected by the commissioner. Advisory 
58.25 	group members' terms and other advisory group matters are subject to Minnesota Statutes, 
58.26 	section 15.059, subdivision 6. The Independent Office of Educational Accountability 
58.27 	must present the advisory group's recommendations under paragraph (a) to the education 
58.28 	policy and finance committees of the legislature by February 15, 2008. The advisory 
58.29 	group expires February 16, 2008.

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

58.31 	Sec. 41. ADVISORY TASK FORCE ON MINNESOTA AMERICAN INDIAN 
58.32 	TRIBES AND COMMUNITIES AND K-12 STANDARDS-BASED REFORM.
 58.33 		Subdivision 1.Duties.  An advisory task force on Minnesota American Indian tribes 
58.34 	and communities and K-12 standards-based reform is established to examine the impact of 
58.35 	state and federal standards-based reform on Minnesota's K-12 students, with particular 
59.1 	attention to the impacts on American Indian students enrolled in Minnesota schools. 
59.2 	The task force, in consultation with American Indian educators, parents, and others who 
59.3 	advocate for American Indian children, must determine if:
59.4 	(1) state education standards and assessments are appropriate for American Indian 
59.5 	students;
59.6 	(2) American Indian students are fairly compared; 
59.7 	(3) American Indian students receive the assistance they need to achieve the state 
59.8 	standards; and 
59.9 	(4) schools receive financial and technical assistance sufficient to meet the 
59.10 	educational needs of American Indian students.
59.11 		Subd. 2.Membership. (a) The commissioner of education shall appoint 
59.12 	representatives from the following organizations and agencies to the task force:
59.13 	(1) Department of Education staff experienced in working with American Indian 
59.14 	students and programs;
59.15 	(2) Minnesota American Indian tribes and communities;
59.16 	(3) the Minnesota School Board Association;
59.17 	(4) school administrators;
59.18 	(5) Education Minnesota;
59.19 	(6) the state Board of Teaching;
59.20 	(7) the Minnesota Council on Indian Affairs; 
59.21 	(8) postsecondary faculty who serve as instructors in teacher preparation programs; 
59.22 	and
59.23 	(9) local community service providers who work with Minnesota American Indian 
59.24 	tribes and communities.
59.25 	(b) After the task force has been convened, the commissioner of education may 
59.26 	appoint additional public members recommended by members of the task force.
59.27 		Subd. 3.Organization; compensation. (a) The commissioner shall complete 
59.28 	appointments to the task force, under subdivision 2, paragraph (a), by September 1, 2007. 
59.29 	The commissioner of education or the commissioner's designee shall convene the first 
59.30 	meeting of the task force within 30 days after the appointments are completed. The task 
59.31 	force shall select a chair from its membership at the first meeting.
59.32 	(b) Vacancies, renewal, and compensation of members are as provided in Minnesota 
59.33 	Statutes, section 15.059, subject to the availability of appropriations.
59.34 	(c) The commissioner of education must provide the task force with administrative 
59.35 	and clerical support.
60.1 		Subd. 4.Recommendations.  By February 15, 2008, the task force must report 
60.2 	recommendations and suggest implementing legislation to the legislative committees and 
60.3 	divisions with jurisdiction over education policy and finance regarding the changes, if 
60.4 	any, to the state's educational performance standards, content requirements, assessments 
60.5 	measures, and teacher preparation programs that will enable Minnesota schools to most 
60.6 	effectively meet the educational needs of American Indian students consistent with 
60.7 	Minnesota Statutes, sections 124D.71 to 124D.82.
60.8 		Subd. 5.Expiration.  This section expires the day following the submission of the 
60.9 	report required by subdivision 4.

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

60.11 	Sec. 42. AMERICAN INDIAN SCHOLARSHIP.
 60.12 	Administration of the American Indian scholarship program under Minnesota 
60.13 	Statutes, section 124D.84, is transferred from the Department of Education to the 
60.14 	Minnesota Office of Higher Education. The director of the Minnesota Office of Higher 
60.15 	Education must contract with at least one knowledgeable person residing in or near the 
60.16 	city of Bemidji to assist students with the scholarships under Minnesota Statutes, section 
60.17 	124D.84, subdivision 1, and with other information about financial aid for which the 
60.18 	students may be eligible. Bemidji State University must provide office space at no cost to 
60.19 	the Minnesota Office of Higher Education for purposes of administering the American 
60.20 	Indian scholarship program under Minnesota Statutes, section 124D.84.

60.21 	Sec. 43. WORLD LANGUAGES RESOURCES.
 60.22 	(a) The commissioner of education shall employ a full-time state coordinator for 
60.23 	world languages education within the department by July 1, 2007. The commissioner shall 
60.24 	seek advice from the quality teaching network before assigning or hiring the coordinator. 
60.25 	The coordinator, at a minimum, shall:
60.26 	(1) assist charter schools and school districts in planning to develop or enhance their 
60.27 	capacity to offer world languages courses and programs;
60.28 	(2) collaborate with Minnesota world languages professionals and charter schools 
60.29 	and school districts and continuously seek their advice in developing all aspects of world 
60.30 	languages programs; 
60.31 	(3) survey Minnesota charter schools and school districts to (i) determine the types 
60.32 	of existing world languages programs including, among others, those that use information 
60.33 	technology to provide high-quality world languages instruction, (ii) identify exemplary 
61.1 	model world languages programs, and (iii) identify and address staff development needs of 
61.2 	current world languages teachers, preservice teachers, and teacher preparation programs;
61.3 	(4) identify successful world languages programs in other states; 
61.4 	(5) consult with interested stakeholders to prepare a report for the commissioner of 
61.5 	education to submit by February 15, 2008, to the education policy and finance committees 
61.6 	of the legislature assessing the feasibility and structure of a statewide world languages 
61.7 	graduation requirement under Minnesota Statutes, section 120B.021, subdivision 1; and 
61.8 	(6) beginning February 1, 2008, and until February 1, 2012, report annually to the 
61.9 	education policy and finance committees of the legislature on the status of world languages 
61.10 	in Minnesota and the programmatic needs identified by charter school and school district 
61.11 	surveys, and make recommendations on how to address the identified needs.
61.12 	(b) After carefully examining existing world languages assessments, including 
61.13 	among other considerations the ease or difficulty with which the assessments may be 
61.14 	adapted to world languages not currently assessed, the commissioner, by July 1, 2009, 
61.15 	shall recommend an assessment tool for charter schools and school districts to use in 
61.16 	measuring student progress in acquiring proficiency in world languages.
61.17 	(c) The commissioner, upon request, must evaluate the plans of charter schools and 
61.18 	school districts to develop or enhance their capacity to offer world languages courses 
61.19 	and programs and continue to offer technical assistance to districts in developing or 
61.20 	enhancing world languages programs. The department shall assist districts in monitoring 
61.21 	local assessment results.

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

61.23 	Sec. 44. APPROPRIATIONS.
 61.24 		Subdivision 1.Minnesota Office of Higher Education. The sums indicated in 
61.25 	this section are appropriated from the general fund to the Minnesota Office of Higher 
61.26 	Education for the fiscal years designated.
61.27 		Subd. 2.American Indian scholarships. For American Indian scholarships under 
61.28 	Minnesota Statutes, section 124D.84:

61.29		$
	1,950,000
	.....
	2008
	
61.30		$
	1,950,000
	.....
	2009
	
61.31 	Of this appropriation, $75,000 each year is for administration under section 42.

61.32 	Sec. 45. APPROPRIATIONS.
 62.1 		Subdivision 1.Board of Regents of the University of Minnesota. The sums 
62.2 	indicated in this section are appropriated from the general fund to the Board of Regents of 
62.3 	the University of Minnesota for the fiscal years designated.
62.4 		Subd. 2.Independent Office of Educational Accountability. For the Independent 
62.5 	Office of Educational Accountability under Minnesota Statutes, section 120B.31, 
62.6 	subdivision 3:

62.7		$
	200,000
	.....
	2008
	
62.8		$
	200,000
	.....
	2009
	
62.9 	This is a onetime appropriation.

62.10 	Sec. 46. APPROPRIATIONS.
 62.11 		Subdivision 1.Department. The sums indicated in this section are appropriated 
62.12 	from the general fund to the Department of Education for the fiscal years designated.
62.13 		Subd. 2.Charter school building lease aid. For building lease aid under Minnesota 
62.14 	Statutes, section 124D.11, subdivision 4: 

62.15		$
	31,875,000
	.....
	2008
	
62.16		$
	36,193,000
	.....
	2009
	
62.17 	The 2008 appropriation includes $2,814,000 for 2007 and $29,061,000 for 2008.
62.18 	The 2009 appropriation includes $3,229,000 for 2008 and $32,964,000 for 2009.
62.19 		Subd. 3.Charter school startup cost aid. For charter school startup cost aid 
62.20 	under Minnesota Statutes, section 124D.11:

62.21		$
	1,896,000
	.....
	2008
	
62.22		$
	2,161,000
	.....
	2009
	
62.23 	The 2008 appropriation includes $241,000 for 2007 and $1,655,000 for 2008.
62.24 	The 2009 appropriation includes $183,000 for 2008 and $1,978,000 for 2009.
62.25 		Subd. 4.Integration aid. For integration aid under Minnesota Statutes, section 
62.26 	124D.86, subdivision 5:

62.27		$
	61,769,000
	.....
	2008
	
62.28		$
	61,000,000
	.....
	2009
	
62.29 	The 2008 appropriation includes $5,824,000 for 2007 and $55,945,000 for 2008.
62.30 	The 2009 appropriation includes $6,216,000 for 2008 and $54,784,000 for 2009.
62.31 		Subd. 5.Magnet school program grants. For magnet school program grants:

63.1		$
	750,000
	.....
	2008
	
63.2		$
	750,000
	.....
	2009
	
63.3 	These amounts may be used for magnet school programs under Minnesota Statutes, 
63.4 	section 124D.871.
63.5 	Up to $100,000 each year is available for site-based decision-making grant proposals 
63.6 	that meet the goals outlined in section 124D.871 under Minnesota Statutes, section 
63.7 	123B.04, subdivision 2, paragraph (g). 
63.8 	Any balance in the first year does not cancel but is available in the second year. 
63.9 		Subd. 6.Interdistrict desegregation or integration transportation grants. For 
63.10 	interdistrict desegregation or integration transportation grants under Minnesota Statutes, 
63.11 	section 124D.87:

63.12		$
	9,639,000
	.....
	2008
	
63.13		$
	11,567,000
	.....
	2009
	
63.14 		Subd. 7.Success for the future. For American Indian success for the future grants 
63.15 	under Minnesota Statutes, section 124D.81:

63.16		$
	2,137,000
	.....
	2008
	
63.17		$
	2,137,000
	.....
	2009
	
63.18 	The 2008 appropriation includes $213,000 for 2007 and $1,924,000 for 2008.
63.19 	The 2009 appropriation includes $213,000 for 2008 and $1,924,000 for 2009.
63.20 		Subd. 8.American Indian teacher preparation grants. For joint grants to assist 
63.21 	American Indians to become teachers under Minnesota Statutes, section 122A.63:

63.22		$
	190,000
	.....
	2008
	
63.23		$
	190,000
	.....
	2009
	
63.24 		Subd. 9.Tribal contract schools. For tribal contract school aid under Minnesota 
63.25 	Statutes, section 124D.83:

63.26		$
	 2,238,000
	.....
	2008
	
63.27		$
	 2,422,000
	.....
	2009
	
63.28 	The 2008 appropriation includes $204,000 for 2007 and $2,034,000 for 2008.
63.29 	The 2009 appropriation includes $226,000 for 2008 and $2,196,000 for 2009.
63.30 		Subd. 10.Early childhood programs at tribal schools. For early childhood 
63.31 	family education programs at tribal contract schools under Minnesota Statutes, section 
63.32 	124D.83, subdivision 4:

64.1		$
	68,000
	.....
	2008
	
64.2		$
	68,000
	.....
	2009
	
64.3 		Subd. 11.Statewide testing and reporting system. For the statewide testing and 
64.4 	reporting system under Minnesota Statutes, section 120B.30:

64.5		$
	 15,150,000
	.....
	2008
	
64.6		$
	 15,150,000
	.....
	2009
	
64.7 	Any testing contracts awarded by the commissioner using appropriations in this 
64.8 	subdivision must include as part of that testing contract a method to vertically link testing 
64.9 	questions across grade levels for the purposes of working towards a statewide growth 
64.10 	model.
64.11 	$1,150,000 each year is for the value-added index assessment model.
64.12 	Any balance in the first year does not cancel but is available in the second year.
64.13 		Subd. 12.Examination fees; teacher training and support programs. (a) For 
64.14 	students' advanced placement and international baccalaureate examination fees under 
64.15 	Minnesota Statutes, section 120B.13, subdivision 3, and the training and related costs 
64.16 	for teachers and other interested educators under Minnesota Statutes, section 120B.13, 
64.17 	subdivision 1:

64.18		$
	4,500,000
	.....
	2008
	
64.19		$
	4,500,000
	.....
	2009
	
64.20 	(b) The advanced placement program shall receive 75 percent of the appropriation 
64.21 	each year and the international baccalaureate program shall receive 25 percent of the 
64.22 	appropriation each year. The department, in consultation with representatives of the 
64.23 	advanced placement and international baccalaureate programs selected by the Advanced 
64.24 	Placement Advisory Council and IBMN, respectively, shall determine the amounts of 
64.25 	the expenditures each year for examination fees and training and support programs for 
64.26 	each program.
64.27 	(c) Notwithstanding Minnesota Statutes, section 120B.13, subdivision 1, at least 
64.28 	$500,000 each year is for teachers to attend subject matter summer training programs 
64.29 	and follow-up support workshops approved by the advanced placement or international 
64.30 	baccalaureate programs. The amount of the subsidy for each teacher attending an 
64.31 	advanced placement or international baccalaureate summer training program or workshop 
64.32 	shall be the same. The commissioner shall determine the payment process and the amount 
64.33 	of the subsidy.
64.34 	(d) The commissioner shall pay all examination fees for all students of low-income 
64.35 	families under Minnesota Statutes, section 120B.13, subdivision 3, and to the extent of 
65.1 	available appropriations shall also pay examination fees for other students sitting for an 
65.2 	advanced placement examination, international baccalaureate examination, or both.
65.3 	Any balance in the first year does not cancel but is available in the second year.
65.4 		Subd. 13.Preadvanced placement, advanced placement, international 
65.5 	baccalaureate, and concurrent enrollment programs. For preadvanced placement, 
65.6 	advanced placement, international baccalaureate, and concurrent enrollment programs 
65.7 	under Minnesota Statutes, sections 120B.132 and 124D.091:

65.8		$
	 6,500,000
	.....
	2008
	
65.9		$
	 6,500,000
	.....
	2009
	
65.10 	Of this amount, $2,500,000 each year is for concurrent enrollment program aid 
65.11 	under Minnesota Statutes, section 124D.091. If the appropriation is insufficient, the 
65.12 	commissioner must proportionately reduce the aid payment to each district.
65.13 	The base appropriation for fiscal year 2010 and later is $2,000,000.
65.14 		Subd. 14.Collaborative urban educator. For collaborative urban educator grants 
65.15 	under Minnesota Statutes, section 122A.641:

65.16		$
	528,000
	.....
	2008
	
65.17		$
	528,000
	.....
	2009
	
65.18 	$210,000 each year is for the Southeast Asian teacher program at Concordia 
65.19 	University, St. Paul; $159,000 each year is for the collaborative urban educator program at 
65.20 	the University of St. Thomas; and $159,000 each year is for the Center for Excellence in 
65.21 	Urban Teaching at Hamline University. Grant recipients must collaborate with urban and 
65.22 	nonurban school districts.
65.23 	Any balance in the first year does not cancel but is available in the second year.
65.24 		Subd. 15.Youth works program. For funding youth works programs under 
65.25 	Minnesota Statutes, sections 124D.37 to 124D.45:

65.26		$
	900,000
	.....
	2008
	
65.27		$
	900,000
	.....
	2009
	
65.28 	A grantee organization may provide health and child care coverage to the dependents 
65.29 	of each participant enrolled in a full-time youth works program to the extent the coverage 
65.30 	is not otherwise available.
65.31 		Subd. 16.Early childhood literacy programs. For early childhood literacy 
65.32 	programs under Minnesota Statutes, section 119A.50, subdivision 3:

65.33		$
	 1,500,000
	.....
	2008
	
65.34		$
	 1,500,000
	.....
	2009
	
66.1 	$1,000,000 each year is for leveraging federal and private funding to support 
66.2 	AmeriCorps members serving in the Minnesota Reading Corps program established by 
66.3 	Serve Minnesota, including costs associated with the training and teaching of early literacy 
66.4 	skills to children age three to grade 3 and the evaluation of the impact of the program 
66.5 	under Minnesota Statutes, sections 124D.38, subdivision 2, and 124D.42, subdivision 6.
66.6 	$500,000 each year is for words work grants for early childhood literacy allocated by 
66.7 	the commissioner under Minnesota Statutes, section 119A.50, subdivision 3, paragraph (a).
66.8 	Any balance in the first year does not cancel but is available in the second year. The 
66.9 	base appropriation for fiscal year 2010 and later is $1,000,000.
66.10 		Subd. 17.St. Croix River Education District. For a grant to the St. Croix River 
66.11 	Education District:

66.12		$
	500,000
	.....
	2008
	
66.13		$
	500,000
	.....
	2009
	
66.14 	These funds must be used to:
66.15 	(1) deliver standardized research-based professional development in 
66.16 	problem-solving, including response to intervention, scientifically based reading 
66.17 	instruction, and standards-aligned instruction and assessment;
66.18 	(2) provide coaching to targeted districts throughout the state;
66.19 	(3) deliver large scale training throughout the state;
66.20 	(4) provide ongoing technical assistance to schools;
66.21 	(5) assist with implementing professional development content into higher education 
66.22 	instructional curricula; and
66.23 	(6) evaluate the effectiveness of project activities.
66.24 	This is a onetime appropriation.
66.25 		Subd. 18.Student organizations. For student organizations:

66.26		$
	725,000
	.....
	2008
	
66.27		$
	725,000
	.....
	2009
	
66.28 	$40,000 each year is for student organizations serving health occupations.
66.29 	$38,000 each year is for student organizations serving service occupations.
66.30 	$88,000 each year is for student organizations serving trade and industry occupations.
66.31 	$84,000 each year is for student organizations serving business occupations.
66.32 	$131,000 each year is for student organizations serving agriculture occupations.
66.33 	$125,000 each year is for student organizations serving family and consumer science 
66.34 	occupations.
66.35 	$95,000 each year is for student organizations serving marketing occupations.
67.1 	Any balance in the first year does not cancel but is available in the second year.
67.2 		Subd. 19.Educational Planning and Assessment System (EPAS) program.
 67.3 	For the Educational Planning and Assessment System (EPAS) program under Minnesota 
67.4 	Statutes, section 120B.128:

67.5		$
	829,000
	.....
	2008
	
67.6		$
	829,000
	.....
	2009
	
67.7 	Any balance in the first year does not cancel but is available in the second year.
67.8 		Subd. 20.College-level examination program (CLEP). For the college-level 
67.9 	examination program (CLEP) under Minnesota Statutes, section 120B.131:

67.10		$
	1,650,000
	.....
	2008
	
67.11		$
	1,650,000
	.....
	2009
	
67.12 	Any balance in the first year does not cancel but is available in the second year.
67.13 		Subd. 21.World Languages grants. For World Languages grants:

67.14		$
	250,000
	.....
	2008
	
67.15		$
	250,000
	.....
	2009
	
67.16 	Any balance in the first year does not cancel but is available in the second year. 
67.17 	This is a onetime appropriation.
67.18 		Subd. 22.National Board for Professional Teaching Standards. (a) For 
67.19 	professional teacher licensure:

67.20		$
	250,000
	.....
	2008
	
67.21		$
	250,000
	.....
	2009
	
67.22 	(b) $63,000 of this amount is for grants of $1,000 each to eligible teachers accepted 
67.23 	as candidates for National Board for Professional Teaching Standards certification 
67.24 	according to Minnesota Statutes, section 122A.73, subdivision 4, paragraph (a). The grant 
67.25 	award shall be made to the national board.
67.26 	(c) $125,000 of this amount is for grants of $2,000 each to eligible teachers 
67.27 	according to Minnesota Statutes, section 122A.73, subdivision 4, paragraph (b). 
67.28 	(d) $62,000 of this amount is for grants of up to $1,000 each to eligible teachers who 
67.29 	have received National Board for Professional Teaching Standards certification according 
67.30 	to Minnesota Statutes, section 122A.73, subdivision 4, paragraph (c).
67.31 	(e) Any balance in the first year does not cancel but is available in the second year.
67.32 	(f) This is a onetime appropriation.
68.1 		Subd. 23.Mathematics and science; teacher centers. For teacher centers for 
68.2 	mathematics and science teacher development:

68.3		$
	1,500,000
	.....
	2008
	
68.4		$
	 1,500,000
	.....
	2009
	
68.5 	Any balance in the first year does not cancel but is available in the second year.
68.6 	This is a onetime appropriation.
68.7 		Subd. 24.First Grade Preparedness. For first grade preparedness grants under 
68.8 	Minnesota Statutes, section 124D.081:

68.9		$
	7,250,000
	.....
	2008
	
68.10		$
	7,250,000
	.....
	2009
	
68.11 	This is a onetime appropriation.
68.12 		Subd. 25.Statewide science, technology, engineering, and math initiative.
 68.13 	For a grant to the Science Museum of Minnesota for the statewide science, technology, 
68.14 	engineering, and math initiative:

68.15		$
	1,500,000
	.....
	2008
	
68.16		$
	1,500,000
	.....
	2009
	
68.17 	Of this amount, $750,000 each year is available for the teacher resource center 
68.18 	and other related programs and $750,000 each year is available for the expansion and 
68.19 	support of the middle school math and science initiative, including teacher workshops and 
68.20 	expanded outreach programs in classrooms. This grant includes funding for an evaluation 
68.21 	of the programs by an entity approved by the Department of Education.
68.22 	This is a onetime appropriation.

68.23 	Sec. 47. REVISOR'S INSTRUCTION.
 68.24 	(a) The revisor of statutes shall renumber Minnesota Statutes, section 124D.84 
68.25 	to section 136A.126, correct cross-references, and make other necessary corrections to 
68.26 	implement section 41.
68.27 	(b) In Minnesota Statutes, the revisor of statutes shall codify Minnesota Statutes, 
68.28 	section 124D.10, subdivision 23a, paragraph (b), as Minnesota Statutes, section 124D.10, 
68.29 	subdivision 26.

68.30 	Sec. 48. REPEALER.
 68.31 	Minnesota Statutes 2006, sections 120B.233; and 124D.62, are repealed.

69.1 	ARTICLE 3
69.2 	SPECIAL PROGRAMS

69.3 	Section 1. Minnesota Statutes 2006, section 123B.92, subdivision 1, is amended to read:
69.4 		Subdivision 1.Definitions. For purposes of this section and section 125A.76, the 
69.5 	terms defined in this subdivision have the meanings given to them.
69.6 	(a) "Actual expenditure per pupil transported in the regular and excess transportation 
69.7 	categories" means the quotient obtained by dividing:
69.8 	(1) the sum of:
69.9 	(i) all expenditures for transportation in the regular category, as defined in paragraph 
69.10 	(b), clause (1), and the excess category, as defined in paragraph (b), clause (2), plus
69.11 	(ii) an amount equal to one year's depreciation on the district's school bus fleet 
69.12 	and mobile units computed on a straight line basis at the rate of 15 percent per year for 
69.13 	districts operating a program under section 124D.128 for grades 1 to 12 for all students in 
69.14 	the district and 12-1/2 percent per year for other districts of the cost of the fleet, plus
69.15 	(iii) an amount equal to one year's depreciation on the district's type three school 
69.16 	buses, as defined in section 169.01, subdivision 6, clause (5), which must be used a 
69.17 	majority of the time for pupil transportation purposes, computed on a straight line basis at 
69.18 	the rate of 20 percent per year of the cost of the type three school buses by:
69.19 	(2) the number of pupils eligible for transportation in the regular category, as defined 
69.20 	in paragraph (b), clause (1), and the excess category, as defined in paragraph (b), clause (2).
69.21 	(b) "Transportation category" means a category of transportation service provided to 
69.22 	pupils as follows:
69.23 	(1) Regular transportation is:
69.24 	(i) transportation to and from school during the regular school year for resident 
69.25 	elementary pupils residing one mile or more from the public or nonpublic school they 
69.26 	attend, and resident secondary pupils residing two miles or more from the public 
69.27 	or nonpublic school they attend, excluding desegregation transportation and noon 
69.28 	kindergarten transportation; but with respect to transportation of pupils to and from 
69.29 	nonpublic schools, only to the extent permitted by sections 123B.84 to 123B.87;
69.30 	(ii) transportation of resident pupils to and from language immersion programs;
69.31 	(iii) transportation of a pupil who is a custodial parent and that pupil's child between 
69.32 	the pupil's home and the child care provider and between the provider and the school, if 
69.33 	the home and provider are within the attendance area of the school;
69.34 	(iv) transportation to and from or board and lodging in another district, of resident 
69.35 	pupils of a district without a secondary school; and
70.1 	(v) transportation to and from school during the regular school year required under 
70.2 	subdivision 3 for nonresident elementary pupils when the distance from the attendance 
70.3 	area border to the public school is one mile or more, and for nonresident secondary pupils 
70.4 	when the distance from the attendance area border to the public school is two miles or 
70.5 	more, excluding desegregation transportation and noon kindergarten transportation.
70.6 	For the purposes of this paragraph, a district may designate a licensed day care 
70.7 	facility, school day care facility, respite care facility, the residence of a relative, or the 
70.8 	residence of a person chosen by the pupil's parent or guardian as the home of a pupil for 
70.9 	part or all of the day, if requested by the pupil's parent or guardian, and if that facility or 
70.10 	residence is within the attendance area of the school the pupil attends.
70.11 	(2) Excess transportation is:
70.12 	(i) transportation to and from school during the regular school year for resident 
70.13 	secondary pupils residing at least one mile but less than two miles from the public or 
70.14 	nonpublic school they attend, and transportation to and from school for resident pupils 
70.15 	residing less than one mile from school who are transported because of extraordinary 
70.16 	traffic, drug, or crime hazards; and
70.17 	(ii) transportation to and from school during the regular school year required under 
70.18 	subdivision 3 for nonresident secondary pupils when the distance from the attendance area 
70.19 	border to the school is at least one mile but less than two miles from the public school 
70.20 	they attend, and for nonresident pupils when the distance from the attendance area border 
70.21 	to the school is less than one mile from the school and who are transported because of 
70.22 	extraordinary traffic, drug, or crime hazards.
70.23 	(3) Desegregation transportation is transportation within and outside of the district 
70.24 	during the regular school year of pupils to and from schools located outside their normal 
70.25 	attendance areas under a plan for desegregation mandated by the commissioner or under 
70.26 	court order.
70.27 	(4) "Transportation services for pupils with disabilities" is:
70.28 	(i) transportation of pupils with disabilities who cannot be transported on a regular 
70.29 	school bus between home or a respite care facility and school;
70.30 	(ii) necessary transportation of pupils with disabilities from home or from school to 
70.31 	other buildings, including centers such as developmental achievement centers, hospitals, 
70.32 	and treatment centers where special instruction or services required by sections 125A.03
70.33 	to 125A.24, 125A.26 to 125A.48, and 125A.65 are provided, within or outside the district 
70.34 	where services are provided;
70.35 	(iii) necessary transportation for resident pupils with disabilities required by sections 
70.36 	125A.12, and 125A.26 to 125A.48;
71.1 	(iv) board and lodging for pupils with disabilities in a district maintaining special 
71.2 	classes;
71.3 	(v) transportation from one educational facility to another within the district for 
71.4 	resident pupils enrolled on a shared-time basis in educational programs, and necessary 
71.5 	transportation required by sections 125A.18, and 125A.26 to 125A.48, for resident pupils 
71.6 	with disabilities who are provided special instruction and services on a shared-time basis 
71.7 	or if resident pupils are not transported, the costs of necessary travel between public 
71.8 	and private schools or neutral instructional sites by essential personnel employed by the 
71.9 	district's program for children with a disability;
71.10 	(vi) transportation for resident pupils with disabilities to and from board and lodging 
71.11 	facilities when the pupil is boarded and lodged for educational purposes; and
71.12 	(vii) services described in clauses (i) to (vi), when provided for pupils with 
71.13 	disabilities in conjunction with a summer instructional program that relates to the pupil's 
71.14 	individual education plan or in conjunction with a learning year program established 
71.15 	under section 124D.128.
71.16 	For purposes of computing special education base revenue initial aid under section 
71.17 	125A.76, subdivision 2, the cost of providing transportation for children with disabilities 
71.18 	includes (A) the additional cost of transporting a homeless student from a temporary 
71.19 	nonshelter home in another district to the school of origin, or a formerly homeless student 
71.20 	from a permanent home in another district to the school of origin but only through the end 
71.21 	of the academic year; and (B) depreciation on district-owned school buses purchased after 
71.22 	July 1, 2005, and used primarily for transportation of pupils with disabilities, calculated 
71.23 	according to paragraph (a), clauses (ii) and (iii). Depreciation costs included in the 
71.24 	disabled transportation category must be excluded in calculating the actual expenditure 
71.25 	per pupil transported in the regular and excess transportation categories according to 
71.26 	paragraph (a).
71.27 	(5) "Nonpublic nonregular transportation" is:
71.28 	(i) transportation from one educational facility to another within the district for 
71.29 	resident pupils enrolled on a shared-time basis in educational programs, excluding 
71.30 	transportation for nonpublic pupils with disabilities under clause (4);
71.31 	(ii) transportation within district boundaries between a nonpublic school and a 
71.32 	public school or a neutral site for nonpublic school pupils who are provided pupil support 
71.33 	services pursuant to section 123B.44; and
71.34 	(iii) late transportation home from school or between schools within a district for 
71.35 	nonpublic school pupils involved in after-school activities.
72.1 	(c) "Mobile unit" means a vehicle or trailer designed to provide facilities for 
72.2 	educational programs and services, including diagnostic testing, guidance and counseling 
72.3 	services, and health services. A mobile unit located off nonpublic school premises is a 
72.4 	neutral site as defined in section 123B.41, subdivision 13.

72.5 	EFFECTIVE DATE. This section is effective for revenue for fiscal year 2008.

72.6 	Sec. 2. Minnesota Statutes 2006, section 124D.454, subdivision 2, is amended to read:
72.7 		Subd. 2.Definitions. For the purposes of this section, the definitions in this 
72.8 	subdivision apply.
72.9 	(a) "Base year" means the second fiscal year preceding the fiscal year for which 
72.10 	aid will be paid.
72.11 	(b) "Basic revenue" has the meaning given it in section 126C.10, subdivision 2. 
72.12 	For the purposes of computing basic revenue pursuant to this section, each child with a 
72.13 	disability shall be counted as prescribed in section 126C.05, subdivision 1. 
72.14 	(c) "Average daily membership" has the meaning given it in section 126C.05. 
72.15 	(d) "Program growth factor" means 1.00 for fiscal year 1998 and later. 
72.16 	(e) "Aid percentage factor" means 100 percent for fiscal year 2000 and later.
72.17 	(f)(b) "Essential personnel" means a licensed teacher, licensed support services 
72.18 	staff person, paraprofessional providing direct services to students, or licensed personnel 
72.19 	under subdivision 12. This definition is not intended to change or modify the definition of 
72.20 	essential employee in chapter 179A.

72.21 	EFFECTIVE DATE. This section is effective for revenue for fiscal year 2008.

72.22 	Sec. 3. Minnesota Statutes 2006, section 124D.454, subdivision 3, is amended to read:
72.23 		Subd. 3.Base revenue Initial aid. (a) The transition-disabled program base revenue
72.24 	initial aid equals the sum of the following amounts computed using basecurrent year data:
72.25 	(1) 68 percent of the salary of each essential licensed person or approved 
72.26 	paraprofessional who provides direct instructional services to students employed during 
72.27 	that fiscal year for services rendered in that district's transition program for children with a 
72.28 	disability;
72.29 	(2) 47 percent of the costs of necessary equipment for transition programs for 
72.30 	children with a disability;
72.31 	(3) 47 percent of the costs of necessary travel between instructional sites by transition 
72.32 	program teachers of children with a disability but not including travel to and from local, 
72.33 	regional, district, state, or national career and technical student organization meetings;
73.1 	(4) 47 percent of the costs of necessary supplies for transition programs for children 
73.2 	with a disability but not to exceed an average of $47 in any one school year for each child 
73.3 	with a disability receiving these services;
73.4 	(5) for transition programs for children with disabilities provided by a contract 
73.5 	approved by the commissioner with public, private, or voluntary agencies other than a 
73.6 	Minnesota school district or cooperative center, in place of programs provided by the 
73.7 	district, 52 percent of the difference between the amount of the contract and the basic 
73.8 	revenue of the district for that pupil for the fraction of the school day the pupil receives 
73.9 	services under the contract;
73.10 	(6) for transition programs for children with disabilities provided by a contract 
73.11 	approved by the commissioner with public, private, or voluntary agencies other than a 
73.12 	Minnesota school district or cooperative center, that are supplementary to a full educational 
73.13 	program provided by the school district, 52 percent of the amount of the contract; and
73.14 	(7) for a contract approved by the commissioner with another Minnesota school 
73.15 	district or cooperative center for vocational evaluation services for children with a 
73.16 	disability for children that are not yet enrolled in grade 12, 52 percent of the amount 
73.17 	of the contract.
73.18 	(b) If requested by a school district for transition programs during the base year for 
73.19 	less than the full school year, the commissioner may adjust the base revenue to reflect 
73.20 	the expenditures that would have occurred during the base year had the program been 
73.21 	operated for the full year.

73.22 	EFFECTIVE DATE. This section is effective for revenue for fiscal year 2008.

73.23 	Sec. 4. Minnesota Statutes 2006, section 125A.11, subdivision 1, is amended to read:
73.24 		Subdivision 1.Nonresident tuition rate; other costs. (a) For fiscal year 2006, 
73.25 	when a school district provides instruction and services outside the district of residence, 
73.26 	board and lodging, and any tuition to be paid, shall be paid by the district of residence. 
73.27 	The tuition rate to be charged for any child with a disability, excluding a pupil for whom 
73.28 	tuition is calculated according to section 127A.47, subdivision 7, paragraph (d), must be 
73.29 	the sum of (1) the actual cost of providing special instruction and services to the child 
73.30 	including a proportionate amount for special transportation and unreimbursed building 
73.31 	lease and debt service costs for facilities used primarily for special education, plus (2) 
73.32 	the amount of general education revenue and referendum aid attributable to the pupil, 
73.33 	minus (3) the amount of special education aid for children with a disability received 
73.34 	on behalf of that child, minus (4) if the pupil receives special instruction and services 
73.35 	outside the regular classroom for more than 60 percent of the school day, the amount of 
74.1 	general education revenue and referendum aid, excluding portions attributable to district 
74.2 	and school administration, district support services, operations and maintenance, capital 
74.3 	expenditures, and pupil transportation, attributable to that pupil for the portion of time 
74.4 	the pupil receives special instruction and services outside of the regular classroom. If 
74.5 	the boards involved do not agree upon the tuition rate, either board may apply to the 
74.6 	commissioner to fix the rate. Notwithstanding chapter 14, the commissioner must then set 
74.7 	a date for a hearing or request a written statement from each board, giving each board 
74.8 	at least ten days' notice, and after the hearing or review of the written statements the 
74.9 	commissioner must make an order fixing the tuition rate, which is binding on both school 
74.10 	districts. General education revenue and referendum equalization aid attributable to a 
74.11 	pupil must be calculated using the resident district's average general education revenue 
74.12 	and referendum revenue equalization aid per adjusted pupil unit.
74.13 	(b) For fiscal year 2007 and later, when a school district provides special instruction 
74.14 	and services for a pupil with a disability as defined in section 125A.02 outside the district 
74.15 	of residence, excluding a pupil for whom an adjustment to special education aid is 
74.16 	calculated according to section 127A.47, subdivision 7, paragraph (e), special education 
74.17 	aid paid to the resident district must be reduced by an amount equal to (1) the actual 
74.18 	cost of providing special instruction and services to the pupil, including a proportionate 
74.19 	amount for special transportation and unreimbursed building lease and debt service costs 
74.20 	for facilities used primarily for special education, plus (2) the amount of general education 
74.21 	revenue and referendum equalization aid attributable to that pupil, calculated using the 
74.22 	resident district's average general education revenue and referendum equalization aid 
74.23 	per adjusted pupil unit excluding basic skills revenue, elementary sparsity revenue and 
74.24 	secondary sparsity revenue, minus (3) the amount of special education aid for children 
74.25 	with a disability received on behalf of that child, minus (4) if the pupil receives special 
74.26 	instruction and services outside the regular classroom for more than 60 percent of the 
74.27 	school day, the amount of general education revenue and referendum equalization aid, 
74.28 	excluding portions attributable to district and school administration, district support 
74.29 	services, operations and maintenance, capital expenditures, and pupil transportation, 
74.30 	attributable to that pupil for the portion of time the pupil receives special instruction and 
74.31 	services outside of the regular classroom.general education revenue and referendum aid 
74.32 	attributable to a pupil must be, calculated using the resident district's average general 
74.33 	education revenue and referendum equalization aid per adjusted pupil unit excluding 
74.34 	basic skills revenue, elementary sparsity revenue and secondary sparsity revenue and the 
74.35 	serving district's basic skills revenue, elementary sparsity revenue and secondary sparsity 
74.36 	revenue per adjusted pupil unit. Notwithstanding clauses (1) and (4), for pupils served by 
75.1 	a cooperative unit without a fiscal agent school district, the general education revenue and 
75.2 	referendum equalization aid attributable to a pupil must be calculated using the resident 
75.3 	district's average general education revenue and referendum equalization aid excluding 
75.4 	elementary sparsity revenue and secondary sparsity revenue. Special education aid paid to 
75.5 	the district or cooperative providing special instruction and services for the pupil must be 
75.6 	increased by the amount of the reduction in the aid paid to the resident district. Amounts 
75.7 	paid to cooperatives under this subdivision and section 127A.47, subdivision 7, shall be 
75.8 	recognized and reported as revenues and expenditures on the resident school district's 
75.9 	books of account under sections 123B.75 and 123B.76. If the resident district's special 
75.10 	education aid is insufficient to make the full adjustment, the remaining adjustment shall be 
75.11 	made to other state aid due to the district.
75.12 	(c) Notwithstanding paragraphs (a) and (b) and section 127A.47, subdivision 7, 
75.13 	paragraphs (d) and (e), a charter school where more than 30 percent of enrolled students 
75.14 	receive special education and related services, a  site approved under section 125A.515, 
75.15 	an intermediate district, a special education cooperative, or a school district that served 
75.16 	as the applicant agency for a group of school districts for federal special education aids 
75.17 	for fiscal year 2006 may apply to the commissioner for authority to charge the resident 
75.18 	district an additional amount to recover any remaining unreimbursed costs of serving 
75.19 	pupils with a disability. The application must include a description of the costs and the 
75.20 	calculations used to determine the unreimbursed portion to be charged to the resident 
75.21 	district. Amounts approved by the commissioner under this paragraph must be included 
75.22 	in the tuition billings or aid adjustments under paragraph (a) or (b), or section 127A.47, 
75.23 	subdivision 7, paragraph (d) or (e), as applicable.
75.24 	(d) For purposes of this subdivision and section 127A.47, subdivision 7, paragraphs 
75.25 	(d) and (e), "general education revenue and referendum equalization aid" means the sum 
75.26 	of the general education revenue according to section 126C.10, subdivision 1, excluding 
75.27 	alternative teacher compensation revenue, plus the referendum equalization aid according 
75.28 	to section 126C.17, subdivision 7, as adjusted according to section 127A.47, subdivision 
75.29 	7, paragraphs (a) to (c).

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

75.31 	Sec. 5. Minnesota Statutes 2006, section 125A.13, is amended to read:
75.32 	125A.13 SCHOOL OF PARENTS' CHOICE.
75.33 	(a) Nothing in this chapter must be construed as preventing parents of a child with a 
75.34 	disability from sending the child to a school of their choice, if they so elect, subject to 
76.1 	admission standards and policies adopted according to sections 125A.62 to 125A.64 and 
76.2 	125A.66 to 125A.73, and all other provisions of chapters 120A to 129C. 
76.3 	(b) The parent of a student with a disability not yet enrolled in kindergarten and not 
76.4 	open enrolled in a nonresident district may request that the resident district enter into a 
76.5 	tuition agreement with the nonresident district if: 
76.6 	(1) the child is enrolled in a Head Start program or a licensed child care setting in 
76.7 	the nonresident district; and 
76.8 	(2) the child can be served in the same setting as other children in the nonresident 
76.9 	district with the same level of disability.

76.10 	Sec. 6. Minnesota Statutes 2006, section 125A.14, is amended to read:
76.11 	125A.14 SUMMER PROGRAMS EXTENDED SCHOOL YEAR.
76.12 	A district may provide summer programsextended school year services for children 
76.13 	with a disability living within the district and nonresident children temporarily placed in 
76.14 	the district pursuant to section 125A.15 or 125A.16. Prior to March 31 or 30 days after the 
76.15 	child with a disability is placed in the district, whichever is later, the providing district 
76.16 	shall give notice to the district of residence of any nonresident children temporarily placed 
76.17 	in the district pursuant to section 125A.15 or 125A.16, of its intention to provide these 
76.18 	programs. Notwithstanding any contrary provisions in sections 125A.15 and 125A.16, the 
76.19 	district providing the special instruction and services must apply for special education 
76.20 	aid for the summer program extended school year services. The unreimbursed actual cost 
76.21 	of providing the program for nonresident children with a disability, including the cost of 
76.22 	board and lodging, may be billed to the district of the child's residence and must be paid 
76.23 	by the resident district. Transportation costs must be paid by the district responsible 
76.24 	for providing transportation pursuant to section 125A.15 or 125A.16 and transportation 
76.25 	aid must be paid to that district. 

76.26 	Sec. 7. Minnesota Statutes 2006, section 125A.63, is amended by adding a subdivision 
76.27 	to read:
76.28 		Subd. 5.Statewide hearing loss early education intervention coordinator. (a) 
76.29 	The coordinator shall:
76.30 	(1) collaborate with the early hearing detection and intervention coordinator for the 
76.31 	Department of Health, the director of the Department of Education Resource Center for 
76.32 	Deaf and Hard-of-Hearing, and the Department of Health Early Hearing Detection and 
76.33 	Intervention Advisory Council;
77.1 	(2) coordinate and support Department of Education early hearing detection and 
77.2 	intervention teams;
77.3 	(3) leverage resources by serving as a liaison between interagency early intervention 
77.4 	committees; part C coordinators from the Departments of Education, Health, and 
77.5 	Human Services; Department of Education regional low-incidence facilitators; service 
77.6 	coordinators from school districts; Minnesota children with special health needs in the 
77.7 	Department of Health; public health nurses; child find; Department of Human Services 
77.8 	Deaf and Hard-of-Hearing Services Division; and others as appropriate;
77.9 	(4) identify, support, and promote culturally appropriate and evidence-based early 
77.10 	intervention practices for infants with hearing loss, and provide training, outreach, and use 
77.11 	of technology to increase consistency in statewide service provision;
77.12 	(5) identify culturally appropriate specialized reliable and valid instruments to assess 
77.13 	and track the progress of children with hearing loss and promote their use;
77.14 	(6) ensure that early childhood providers, parents, and members of the individual 
77.15 	family service and intervention plan are provided with child progress data resulting from 
77.16 	specialized assessments;
77.17 	(7) educate early childhood providers and teachers of the deaf and hard-of-hearing 
77.18 	to use developmental data from specialized assessments to plan and adjust individual 
77.19 	family service plans; and
77.20 	(8) make recommendations that would improve educational outcomes to the early 
77.21 	hearing detection and intervention committee, the commissioners of education and health, 
77.22 	the Minnesota Commission Serving Deaf and Hard-of-Hearing People, and the advisory 
77.23 	council of the Minnesota Department of Education Resource Center for the Deaf and 
77.24 	Hard-of-Hearing.
77.25 	(b) The Department of Education must provide aggregate data regarding outcomes 
77.26 	of deaf and hard-of-hearing children who receive early intervention services within the 
77.27 	state in accordance with the state performance plan.

77.28 	Sec. 8. Minnesota Statutes 2006, section 125A.75, subdivision 1, is amended to read:
77.29 		Subdivision 1.Travel aid. The state must pay each district one-half of the sum 
77.30 	actually expended by a district, based on mileage, for necessary travel of essential 
77.31 	personnel providing home-based or community-based services to children with a disability 
77.32 	under age five and their families.

77.33 	Sec. 9. Minnesota Statutes 2006, section 125A.75, subdivision 4, is amended to read:
78.1 		Subd. 4.Program and aid approval. Before June 1 of each year, each district 
78.2 	providing special instruction and services to children with a disability, including children 
78.3 	eligible for Part C, as defined in section 125A.02, subdivision 1, and section 125A.27, 
78.4 	subdivision 8,  must submit to the commissioner an application for approval of these 
78.5 	programs and their budgets for the next fiscal year. The application must include an 
78.6 	enumeration of the costs proposed as eligible for state aid pursuant to this section and of 
78.7 	the estimated number and grade level of children with a disability in the district who will 
78.8 	receive special instruction and services during the regular school year and in summer 
78.9 	school programs during the next fiscal year. The application must also include any 
78.10 	other information deemed necessary by the commissioner for the calculation of state aid 
78.11 	and for the evaluation of the necessity of the program, the necessity of the personnel 
78.12 	to be employed in the program, for determining the amount which the program will 
78.13 	receive from grants from federal funds, or special grants from other state sources, and 
78.14 	the program's compliance with the rules and standards of the Department of Education. 
78.15 	The commissioner shall review each application to determine whether the program and 
78.16 	the personnel to be employed in the program are actually necessary and essential to meet 
78.17 	the district's obligation to provide special instruction and services to children with a 
78.18 	disability pursuant to sections 125A.03 to 125A.24, 125A.259 to 125A.48, and 125A.65. 
78.19 	The commissioner shall not approve aid pursuant to this section for any program or for 
78.20 	the salary of any personnel determined to be unnecessary or unessential on the basis of 
78.21 	this review. The commissioner may withhold all or any portion of the aid for programs 
78.22 	which receive grants from federal funds, or special grants from other state sources. By 
78.23 	August 31 the commissioner shall approve, disapprove, or modify each application, and 
78.24 	notify each applying district of the action and of the estimated amount of aid for the 
78.25 	programs. The commissioner shall provide procedures for districts to submit additional 
78.26 	applications for program and budget approval during the fiscal year, for programs needed 
78.27 	to meet any substantial changes in the needs of children with a disability in the district. 
78.28 	Notwithstanding the provisions of section 127A.42, the commissioner may modify or 
78.29 	withdraw the program or aid approval and withhold aid pursuant to this section without 
78.30 	proceeding according to section 127A.42 at any time the commissioner determines that 
78.31 	the program does not comply with rules of the Department of Education or that any facts 
78.32 	concerning the program or its budget differ from the facts in the district's approved 
78.33 	application. 

78.34 	EFFECTIVE DATE. This section is effective for revenue for fiscal year 2008.

79.1 	Sec. 10. Minnesota Statutes 2006, section 125A.75, is amended by adding a 
79.2 	subdivision to read:
79.3 		Subd. 9.Litigation costs; annual report. (a) By November 30 of each year, 
79.4 	a school district must annually report the district's special education litigation costs, 
79.5 	including attorney fees and costs of due process hearings, to the commissioner of 
79.6 	education, consistent with the Uniform Financial Accounting and Reporting Standards.
79.7 	(b) By January 15 of each year, the commissioner shall report school district special 
79.8 	education litigation costs to the house of representatives and the senate committees having 
79.9 	jurisdiction over kindergarten through grade 12 education finance.

79.10 	Sec. 11. Minnesota Statutes 2006, section 125A.76, subdivision 1, is amended to read:
79.11 		Subdivision 1.Definitions. For the purposes of this section, the definitions in this 
79.12 	subdivision apply.
79.13 	(a) "Base year" for fiscal year 1998 and later fiscal years means the second fiscal 
79.14 	year preceding the fiscal year for which aid will be paid.
79.15 	(b) "Basic revenue" has the meaning given it in section 126C.10, subdivision 2. 
79.16 	For the purposes of computing basic revenue pursuant to this section, each child with a 
79.17 	disability shall be counted as prescribed in section 126C.05, subdivision 1. 
79.18 	(c)(b) "Essential personnel" means teachers, cultural liaisons, related services, and 
79.19 	support services staff providing direct services to students. Essential personnel may also 
79.20 	include special education paraprofessionals or clericals providing support to teachers and 
79.21 	students by preparing paperwork and making arrangements related to special education 
79.22 	compliance requirements, including parent meetings and individual education plans.
79.23 	(d)(c) "Average daily membership" has the meaning given it in section 126C.05. 
79.24 	(e)(d) "Program growth factor" means 1.046 for fiscal year 2003, and 1.0 for fiscal 
79.25 	year 20042012 and later. 

79.26 	EFFECTIVE DATE. This section is effective for revenue for fiscal year 2008.

79.27 	Sec. 12. Minnesota Statutes 2006, section 125A.76, subdivision 2, is amended to read:
79.28 		Subd. 2.Special education base revenue initial aid. (a) The special education 
79.29 	base revenueinitial aid equals the sum of the following amounts computed using base
79.30 	current year data:
79.31 	(1) 68 percent of the salary of each essential person employed in the district's 
79.32 	program for children with a disability during the fiscal year, whether the person is 
79.33 	employed by one or more districts or a Minnesota correctional facility operating on a 
79.34 	fee-for-service basis;
80.1 	(2) for the Minnesota State Academy for the Deaf or the Minnesota State Academy 
80.2 	for the Blind, 68 percent of the salary of each instructional aide assigned to a child 
80.3 	attending the academy, if that aide is required by the child's individual education plan;
80.4 	(3) for special instruction and services provided to any pupil by contracting with 
80.5 	public, private, or voluntary agencies other than school districts, in place of special 
80.6 	instruction and services provided by the district, 52 percent of the difference between 
80.7 	the amount of the contract and the amount of the basic revenue, as defined in section 
80.8 	126C.10, subdivision 2, special education aid, and any other aid earned on behalf of 
80.9 	the childthe general education revenue, excluding basic skills revenue and alternative 
80.10 	teacher compensation revenue, and referendum equalization aid attributable to a pupil, 
80.11 	calculated using the resident district's average general education revenue and referendum 
80.12 	equalization aid per adjusted pupil unit for the fraction of the school day the pupil receives 
80.13 	services under the contract. This includes children who are residents of the state, receive 
80.14 	services under this subdivision and subdivision 1, and are placed in a care and treatment 
80.15 	facility by court action in a state that does not have a reciprocity agreement with the 
80.16 	commissioner under section 125A.155 as provided for in section 125A.79, subdivision 8; 
80.17 	(4) for special instruction and services provided to any pupil by contracting for 
80.18 	services with public, private, or voluntary agencies other than school districts, that are 
80.19 	supplementary to a full educational program provided by the school district, 52 percent of 
80.20 	the amount of the contract for that pupil;
80.21 	(5) for supplies and equipment purchased or rented for use in the instruction of 
80.22 	children with a disability, an amount equal to 47 percent of the sum actually expended by 
80.23 	the district, or a Minnesota correctional facility operating on a fee-for-service basis, but 
80.24 	not to exceed an average of $47 in any one school year for each child with a disability 
80.25 	receiving instruction;
80.26 	(6) for fiscal years 1997 and later, special education base revenue shall include 
80.27 	amounts under clauses (1) to (5) for special education summer programs provided during 
80.28 	the base year for that fiscal year; and
80.29 	(7) for fiscal years 1999 and later, the cost of providing transportation services for 
80.30 	children with disabilities under section 123B.92, subdivision 1, paragraph (b), clause 
80.31 	(4); and
80.32 	(8) the district's transition-disabled program initial aid according to section 
80.33 	124D.454, subdivision 3. 
80.34 	The department shall establish procedures through the uniform financial accounting 
80.35 	and reporting system to identify and track all revenues generated from third-party billings 
80.36 	as special education revenue at the school district level; include revenue generated from 
81.1 	third-party billings as special education revenue in the annual cross-subsidy report; and 
81.2 	exclude third-party revenue from calculation of excess cost aid to the districts.
81.3 	(b) If requested by a school district operating a special education program during 
81.4 	the base year for less than the full fiscal year, or a school district in which is located a 
81.5 	Minnesota correctional facility operating on a fee-for-service basis for less than the full 
81.6 	fiscal year, the commissioner may adjust the base revenue to reflect the expenditures 
81.7 	that would have occurred during the base year had the program been operated for the 
81.8 	full fiscal year.
81.9 	(c) Notwithstanding paragraphs (a) and (b), the portion of a school district's base 
81.10 	revenue attributable to a Minnesota correctional facility operating on a fee-for-service 
81.11 	basis during the facility's first year of operating on a fee-for-service basis shall be 
81.12 	computed using current year data.

81.13 	EFFECTIVE DATE. This section is effective for revenue for fiscal year 2008.

81.14 	Sec. 13. Minnesota Statutes 2006, section 125A.76, subdivision 4, is amended to read:
81.15 		Subd. 4.State total special education aid. The state total special education aid 
81.16 	for fiscal year 2004 equals $530,642,000. The state total special education aid for fiscal 
81.17 	year 2005 equals $529,164,000 $529,247,000 for fiscal year 2007, $694,063,000 for 
81.18 	fiscal year 2008, $719,470,000 for fiscal year 2009, $735,693,000 for fiscal year 2010, 
81.19 	and $786,586,000 for fiscal year 2011. The state total special education aid for later 
81.20 	fiscal years equals:
81.21 	(1) the state total special education aid for the preceding fiscal year; times
81.22 	(2) the program growth factor; times
81.23 	(3) the greater of one, or the ratio of the state total average daily membership for the 
81.24 	current fiscal year to the state total average daily membership for the preceding fiscal year.

81.25 	EFFECTIVE DATE. This section is effective for revenue for fiscal year 2008.

81.26 	Sec. 14. Minnesota Statutes 2006, section 125A.76, subdivision 5, is amended to read:
81.27 		Subd. 5.School district special education aid. (a) A school district's special 
81.28 	education aid for fiscal year 20002008 and later equals the state total special education 
81.29 	aid, minus the amount determined under paragraphs (b) and (c), times the ratio of the 
81.30 	district's adjustedinitial special education base revenueaid to the state total adjusted
81.31 	initial special education base revenue aid. If the commissioner of education modifies 
81.32 	its rules for special education in a manner that increases a district's special education 
81.33 	obligations or service requirements, the commissioner shall annually increase each 
82.1 	district's special education aid by the amount necessary to compensate for the increased 
82.2 	service requirements. The additional aid equals the cost in the current year attributable to 
82.3 	rule changes not reflected in the computation of special education base revenue, multiplied 
82.4 	by the appropriate percentages from subdivision 2.
82.5 	(b) Notwithstanding paragraph (a), if the special education base revenue for a 
82.6 	district equals zero, the special education aid equals the amount computed according 
82.7 	to subdivision 2 using current year data.
82.8 	(c) Notwithstanding paragraphs (a) and (b), if the special education base revenue for 
82.9 	a district is greater than zero, and the base year amount for the district under subdivision 
82.10 	2, paragraph (a), clause (7), equals zero, the special education aid equals the sum of the 
82.11 	amount computed according to paragraph (a), plus the amount computed according to 
82.12 	subdivision 2, paragraph (a), clause (7), using current year data.
82.13 	(d) A charter school under section 124D.10 shall generate state special education 
82.14 	aid based on current year expenditures for its first four years of operation and only in its 
82.15 	fifth and later years shall paragraphs (a), (b), and (c) apply. 

82.16 	EFFECTIVE DATE. This section is effective for revenue for fiscal year 2008.

82.17 	Sec. 15. Minnesota Statutes 2006, section 125A.76, is amended by adding a 
82.18 	subdivision to read:
82.19 		Subd. 8.Special education forecast maintenance of effort. (a) If, on the basis of 
82.20 	a forecast of general fund revenues and expenditures under section 16A.103, the state's 
82.21 	expenditures for special education and related services for children with disabilities 
82.22 	from nonfederal sources for a fiscal year, including special education aid under section 
82.23 	125A.76; special education excess cost aid under section 125A.76, subdivision 7; travel 
82.24 	for home-based services under section 125A.75, subdivision 1; aid for students with 
82.25 	disabilities under section 125A.75, subdivision 3; court-placed special education under 
82.26 	section 125A.79, subdivision 4; out-of-state tuition under section 125A.79, subdivision 8; 
82.27 	and direct expenditures by state agencies are projected to be less than the amount required 
82.28 	to meet federal special education maintenance of effort, the additional amount required 
82.29 	to meet federal special education maintenance of effort is added to the state total special 
82.30 	education aid in section 125A.76, subdivision 4.
82.31 	(b) If, on the basis of a forecast of general fund revenues and expenditures under 
82.32 	section 16A.103, expenditures in the programs in paragraph (a) are projected to be greater 
82.33 	than previously forecast for an enacted budget, and an addition to state total special 
82.34 	education aid has been made under paragraph (a), the state total special education aid 
83.1 	must be reduced by the lesser of the amount of the expenditure increase or the amount 
83.2 	previously added to state total special education aid in section 125A.76, subdivision 4.
83.3 	(c) For the purpose of this section, "previously forecast for an enacted budget" means 
83.4 	the allocation of funding for these programs in the most recent forecast of general fund 
83.5 	revenues and expenditures or the act appropriating money for these programs, whichever 
83.6 	occurred most recently. It does not include planning estimates for a future biennium.
83.7 	(d) If the amount of special education aid is adjusted in accordance with this 
83.8 	subdivision, the commissioner of education shall notify the chairs of the legislative 
83.9 	committees having jurisdiction over kindergarten through grade 12 education regarding 
83.10 	the amount of the adjustment and provide an explanation of the federal maintenance of 
83.11 	effort requirements.

83.12 	EFFECTIVE DATE. This section is effective for fiscal year 2008.

83.13 	Sec. 16. Minnesota Statutes 2006, section 125A.78, is amended to read:
83.14 	125A.78 ALTERNATIVE DELIVERY BASE REVENUEINITIAL AID 
83.15 	ADJUSTMENT.
83.16 		Subdivision 1.Eligibility. A district is eligible for an alternative delivery base 
83.17 	revenueinitial aid adjustment if the commissioner has approved the application of the 
83.18 	district according to section 125A.50. 
83.19 		Subd. 2.Base revenueInitial aid adjustment. For the third fiscal year after 
83.20 	approval of a district's application, and thereafter, the special education base revenueinitial 
83.21 	aid under section 125A.76, subdivision 1, must be computed based on activities defined as 
83.22 	reimbursable under Department of Education rules for special education and nonspecial 
83.23 	education students, and additional activities as detailed and approved by the commissioner. 
83.24 		Subd. 3.Use of revenue. Revenue under section 125A.76 shall be used to 
83.25 	implement the approved program. 

83.26 	EFFECTIVE DATE. This section is effective for revenue for fiscal year 2008.

83.27 	Sec. 17. Minnesota Statutes 2006, section 125A.79, subdivision 1, is amended to read:
83.28 		Subdivision 1.Definitions. For the purposes of this section, the definitions in this 
83.29 	subdivision apply.
83.30 	(a) "Unreimbursed special education cost" means the sum of the following:
83.31 	(1) expenditures for teachers' salaries, contracted services, supplies, equipment, and 
83.32 	transportation services eligible for revenue under section 125A.76; plus
84.1 	(2) expenditures for tuition bills received under sections 125A.03 to 125A.24 and 
84.2 	125A.65 for services eligible for revenue under section 125A.76, subdivision 2; minus
84.3 	(3) revenue for teachers' salaries, contracted services, supplies, and equipment, and 
84.4 	transportation services under section 125A.76; minus
84.5 	(4) tuition receipts under sections 125A.03 to 125A.24 and 125A.65 for services 
84.6 	eligible for revenue under section 125A.76, subdivision 2.
84.7 	(b) "General revenue" means the sum of the general education revenue according to 
84.8 	section 126C.10, subdivision 1, excluding alternative teacher compensation revenue, plus 
84.9 	the total qualifying referendum revenue specified in paragraph (e) minus transportation 
84.10 	sparsity revenue minus total operating capital revenue.
84.11 	(c) "Average daily membership" has the meaning given it in section 126C.05.
84.12 	(d) "Program growth factor" means 1.02 for fiscal year 2003, and 1.0 for fiscal 
84.13 	year 20042012 and later.
84.14 	(e) "Total qualifying referendum revenue" means two-thirds of the district's total 
84.15 	referendum revenue as adjusted according to section 127A.47, subdivision 7, paragraphs 
84.16 	(a) to (c), for fiscal year 2006, one-third of the district's total referendum revenue for fiscal 
84.17 	year 2007, and none of the district's total referendum revenue for fiscal year 2008 and later.

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

84.19 	Sec. 18. Minnesota Statutes 2006, section 125A.79, subdivision 5, is amended to read:
84.20 		Subd. 5.Initial excess cost aid. For fiscal years 20022008 and later, a district's 
84.21 	initial excess cost aid equals the greatestgreater of:
84.22 	(1) 75 percent of the difference between (i) the district's unreimbursed special 
84.23 	education cost and (ii) 4.36 percent of the district's general revenue;  or
84.24 	(2) 70 percent of the difference between (i) the increase in the district's unreimbursed 
84.25 	special education cost between the base year as defined in section 125A.76, subdivision 1, 
84.26 	and the current year and (ii) 1.6 percent of the district's general revenue; or
84.27 	(3) zero.

84.28 	Sec. 19. Minnesota Statutes 2006, section 125A.79, subdivision 6, is amended to read:
84.29 		Subd. 6.State total special education excess cost aid. The state total special 
84.30 	education excess cost aid for fiscal year 2005 equals $91,811,000 $104,700,000 for 
84.31 	fiscal year 2007, $110,641,000 for fiscal year 2008, $110,918,000 for fiscal year 2009, 
84.32 	$110,847,000 for fiscal year 2010, and $110,892,000 for fiscal year 2011. The state 
84.33 	total special education excess cost aid equals $103,600,000 for fiscal year 2006 and 
85.1 	$104,700,000 for fiscal year 2007. The state total special education excess cost aid for 
85.2 	fiscal year 2008 and later fiscal years equals:
85.3 	(1) the state total special education excess cost aid for the preceding fiscal year; times
85.4 	(2) the program growth factor; times
85.5 	(3) the greater of one, or the ratio of the state total average daily membership for the 
85.6 	current fiscal year to the state total average daily membership for the preceding fiscal year.

85.7 	EFFECTIVE DATE. This section is effective for revenue for fiscal year 2008.

85.8 	Sec. 20. Minnesota Statutes 2006, section 125A.79, subdivision 8, is amended to read:
85.9 		Subd. 8.Out-of-state tuition. For children who are residents of the state, receive 
85.10 	services under section 125A.76, subdivisions 1 and 2, and are placed in a care and 
85.11 	treatment facility by court action in a state that does not have a reciprocity agreement 
85.12 	with the commissioner under section 125A.155, the resident school district shall submit 
85.13 	the balance of the tuition bills, minus the amount of the basic revenue, as defined by 
85.14 	section 126C.10, subdivision 2, of the district for the child and the general education 
85.15 	revenue, excluding basic skills revenue and alternative teacher compensation revenue, 
85.16 	and referendum equalization aid attributable to the pupil, calculated using the resident 
85.17 	district's average general education revenue and referendum equalization aid per adjusted 
85.18 	pupil unit minus  the special education aid, and any other aid earned on behalf of the child
85.19 	contracted services initial revenue attributable to the pupil. 

85.20 	Sec. 21. Minnesota Statutes 2006, section 127A.47, subdivision 7, is amended to read:
85.21 		Subd. 7.Alternative attendance programs. The general education aid and special 
85.22 	education aid for districts must be adjusted for each pupil attending a nonresident district 
85.23 	under sections 123A.05 to 123A.08, 124D.03, 124D.06, 124D.08, and 124D.68. The 
85.24 	adjustments must be made according to this subdivision.
85.25 	(a) General education aid paid to a resident district must be reduced by an amount 
85.26 	equal to the referendum equalization aid attributable to the pupil in the resident district.
85.27 	(b) General education aid paid to a district serving a pupil in programs listed in this 
85.28 	subdivision must be increased by an amount equal to the referendum equalization aid 
85.29 	attributable to the pupil in the nonresident district.
85.30 	(c) If the amount of the reduction to be made from the general education aid of the 
85.31 	resident district is greater than the amount of general education aid otherwise due the 
85.32 	district, the excess reduction must be made from other state aids due the district.
85.33 	(d) For fiscal year 2006, the district of residence must pay tuition to a district or an 
85.34 	area learning center, operated according to paragraph (f), providing special instruction and 
86.1 	services to a pupil with a disability, as defined in section 125A.02, or a pupil, as defined in 
86.2 	section 125A.51, who is enrolled in a program listed in this subdivision. The tuition must 
86.3 	be equal to (1) the actual cost of providing special instruction and services to the pupil, 
86.4 	including a proportionate amount for special transportation and unreimbursed building 
86.5 	lease and debt service costs for facilities used primarily for special education, minus (2) if 
86.6 	the pupil receives special instruction and services outside the regular classroom for more 
86.7 	than 60 percent of the school day, the amount of general education revenue and referendum 
86.8 	equalization aid attributable to that pupil for the portion of time the pupil receives special 
86.9 	instruction and services outside of the regular classroom, excluding portions attributable to 
86.10 	district and school administration, district support services, operations and maintenance, 
86.11 	capital expenditures, and pupil transportation, minus (3) special education aid attributable 
86.12 	to that pupil, that is received by the district providing special instruction and services. 
86.13 	For purposes of this paragraph, general education revenue and referendum equalization 
86.14 	aid attributable to a pupil must be calculated using the serving district's average general 
86.15 	education revenue and referendum equalization aid per adjusted pupil unit.
86.16 	(e) For fiscal year 2007 and later, special education aid paid to a resident district 
86.17 	must be reduced by an amount equal to (1) the actual cost of providing special instruction 
86.18 	and services, including special transportation and unreimbursed building lease and debt 
86.19 	service costs for facilities used primarily for special education, for a pupil with a disability, 
86.20 	as defined in section 125A.02, or a pupil, as defined in section 125A.51, who is enrolled 
86.21 	in a program listed in this subdivision, minus (2) if the pupil receives special instruction 
86.22 	and services outside the regular classroom for more than 60 percent of the school day, 
86.23 	the amount of general education revenue and referendum equalization aid attributable 
86.24 	to that pupil for the portion of time the pupil receives special instruction and services 
86.25 	outside of the regular classroom, excluding portions attributable to district and school 
86.26 	administration, district support services, operations and maintenance, capital expenditures, 
86.27 	and pupil transportation, minus (3) special education aid attributable to that pupil, that is 
86.28 	received by the district providing special instruction and services. For purposes of this 
86.29 	paragraph, general education revenue and referendum equalization aid attributable to a 
86.30 	pupil must be calculated using the serving district's average general education revenue 
86.31 	and referendum equalization aid per adjusted pupil unit. Special education aid paid to the 
86.32 	district or cooperative providing special instruction and services for the pupil, or to the 
86.33 	fiscal agent district for a cooperative, must be increased by the amount of the reduction 
86.34 	in the aid paid to the resident district. If the resident district's special education aid is 
86.35 	insufficient to make the full adjustment, the remaining adjustment shall be made to other 
86.36 	state aids due to the district.
87.1 	(f) An area learning center operated by a service cooperative, intermediate district, 
87.2 	education district, or a joint powers cooperative may elect through the action of the 
87.3 	constituent boards to charge the resident district tuition for pupils rather than to have the 
87.4 	general education revenue paid to a fiscal agent school district. Except as provided in 
87.5 	paragraph (d) or (e), the district of residence must pay tuition equal to at least 90 percent 
87.6 	of the district average general education revenue per pupil unit minus an amount equal to 
87.7 	the product of the formula allowance according to section 126C.10, subdivision 2, times 
87.8 	.0485, calculated without basic skills revenue and transportation sparsity revenue, times 
87.9 	the number of pupil units for pupils attending the area learning center, plus the amount of 
87.10 	compensatory revenue generated by pupils attending the area learning center.

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

87.12 	Sec. 22. Laws 2006, chapter 263, article 3, section 15, is amended to read:
87.13 	Sec. 15. SPECIAL EDUCATION TUITION BILLING FOR FISCAL YEARS 
87.14 	2006 AND, 2007, AND 2008.
 87.15 	(a) Notwithstanding Minnesota Statutes, sections 125A.11, subdivision 1, paragraph 
87.16 	(a), and 127A.47, subdivision 7, paragraph (d), for fiscal year 2006 an intermediate 
87.17 	district, special education cooperative, or school district that served as an applicant 
87.18 	agency for a group of school districts for federal special education aids for fiscal year 
87.19 	2006 is not subject to the uniform special education tuition billing calculations, but may 
87.20 	instead continue to bill the resident school districts for the actual unreimbursed costs 
87.21 	of serving pupils with a disability as determined by the intermediate district, special 
87.22 	education cooperative, or school district.
87.23 	(b) Notwithstanding Minnesota Statutes, section 125A.11, subdivision 1, paragraph 
87.24 	(c), for fiscal year 2007 only, an applicant district agency exempted from the uniform 
87.25 	special education tuition billing calculations for fiscal year 2006 under paragraph (a)
87.26 	may apply to the commissioner for a waiver an exemption from the uniform special 
87.27 	education tuition calculations and aid adjustments under Minnesota Statutes, sections 
87.28 	125A.11, subdivision 1, paragraph (b), and 127A.47, subdivision 7, paragraph (e). The 
87.29 	commissioner must grant the waiver exemption within 30 days of receiving the following 
87.30 	information from the intermediate district, special education cooperative, or school district:
87.31 	(1) a detailed description of the applicant district's methodology for calculating 
87.32 	special education tuition for fiscal years 2006 and 2007, as required by the applicant 
87.33 	district to recover the full cost of serving pupils with a disability;
88.1 	(2) sufficient data to determine the total amount of special education tuition actually 
88.2 	charged for each student with a disability, as required by the applicant district to recover 
88.3 	the full cost of serving pupils with a disability in fiscal year 2006; and
88.4 	(3) sufficient data to determine the amount that would have been charged for each 
88.5 	student for fiscal year 2006 using the uniform tuition billing methodology according 
88.6 	to Minnesota Statutes, sections 125A.11, subdivision 1, or 127A.47, subdivision 7, 
88.7 	as applicable.
88.8 	(c) Notwithstanding Minnesota Statutes, section 125A.11, subdivision 1, paragraph 
88.9 	(c), for fiscal year 2008 only, an agency granted an exemption from the uniform special 
88.10 	education tuition billing calculations and aid adjustments for fiscal year 2007 under 
88.11 	paragraph (b)  may apply to the commissioner for a one-year extension of the exemption 
88.12 	granted under paragraph (b). The commissioner must grant the extension within 30 days 
88.13 	of receiving the request. 
88.14 	(d) Notwithstanding Minnesota Statutes, section 125A.11, subdivision 1, paragraphs 
88.15 	(a) and (b), and section 127A.47, subdivision 7, paragraphs (d) and (e), for fiscal year 2007 
88.16 	only, a school district or charter school not eligible for a waiver under Minnesota Statutes, 
88.17 	section 125A.11, subdivision 1, paragraph (d), may apply to the commissioner for authority 
88.18 	to charge the resident district an additional amount to recover any remaining unreimbursed 
88.19 	costs of serving pupils with a disability. The application must include a description of the 
88.20 	costs and the calculations used to determine the unreimbursed portion to be charged to the 
88.21 	resident district. Amounts approved by the commissioner under this paragraph must be 
88.22 	included in the tuition billings or aid adjustments under paragraph (a) or (b), or Minnesota 
88.23 	Statutes, section 127A.47, subdivision 7, paragraph (d) or (e), as applicable.

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

88.25 	Sec. 23. TASK FORCE TO COMPARE FEDERAL AND STATE SPECIAL 
88.26 	EDUCATION REQUIREMENTS.
 88.27 		Subdivision 1.Establishment; duties. A task force is established to recommend 
88.28 	which state laws and rules that exceed or expand upon minimum federal special education 
88.29 	requirements for providing special education programs and services to eligible students 
88.30 	should be amended to conform with minimum federal requirements. The commissioner 
88.31 	of the Bureau of Mediation Services under Minnesota Statutes, section 179.02, after 
88.32 	consulting with interested stakeholders, shall appoint a ten-member task force composed 
88.33 	of equal numbers of providers, advocates, regulators, consumers of special education 
88.34 	services, lawyers who practice in the field of special education and represent either parents 
88.35 	or school districts, special education teachers, and school officials. The commissioner must 
89.1 	convene the task force by August 1, 2007, which shall meet regularly and shall review the 
89.2 	January 25, 2006, report prepared by the Minnesota Department of Education Office of 
89.3 	Compliance and Assistance and other relevant studies and resources analyzing differences 
89.4 	between federal and state special education requirements. The terms and compensation of 
89.5 	task force members are governed by Minnesota Statutes, section 15.059, subdivision 6.
89.6 		Subd. 2.Report. The task force must submit to the education policy and finance 
89.7 	committees of the legislature by February 15, 2008, a report that identifies and clearly 
89.8 	and concisely explains each provision in state law or rule that exceeds or expands upon 
89.9 	a minimum federal requirement contained in law or regulation for providing special 
89.10 	education programs and services to eligible students. The report also must recommend 
89.11 	which state provisions that exceed or expand upon a minimum federal requirement may 
89.12 	be amended to conform with minimum federal requirements. The task force expires 
89.13 	when it submits its report to the legislature.

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

89.15 	Sec. 24. APPROPRIATIONS.
 89.16 		Subdivision 1.Department of Education. The sums indicated in this section are 
89.17 	appropriated from the general fund to the Department of Education for the fiscal years 
89.18 	designated.
89.19 		Subd. 2.Special education; regular. For special education aid under Minnesota 
89.20 	Statutes, section 125A.75:

89.21		$
	 677,622,000
	.....
	2008
	
89.22		$
	 716,929,000
	.....
	2009
	
89.23 	The 2008 appropriation includes $52,965,000 for 2007 and $624,657,000 for 2008.
89.24 	The 2009 appropriation includes $69,406,000 for 2008 and $647,523,000 for 2009.
89.25 		Subd. 3.Aid for children with disabilities. For aid under Minnesota Statutes, 
89.26 	section 125A.75, subdivision 3, for children with disabilities placed in residential facilities 
89.27 	within the district boundaries for whom no district of residence can be determined:

89.28		$
	1,538,000
	.....
	2008
	
89.29		$
	1,729,000
	.....
	2009
	
89.30 	If the appropriation for either year is insufficient, the appropriation for the other 
89.31 	year is available.
89.32 		Subd. 4.Travel for home-based services. For aid for teacher travel for home-based 
89.33 	services under Minnesota Statutes, section 125A.75, subdivision 1:

90.1		$
	254,000
	.....
	2008
	
90.2		$
	284,000
	.....
	2009
	
90.3 	The 2008 appropriation includes $22,000 for 2007 and $232,000 for 2008.
90.4 	The 2009 appropriation includes $25,000 for 2008 and $259,000 for 2009.
90.5 		Subd. 5.Special education; excess costs. For excess cost aid under Minnesota 
90.6 	Statutes, section 125A.79, subdivision 7:

90.7		$
	 108,656,000
	.....
	2008
	
90.8		$
	 110,826,000
	.....
	2009
	
90.9 	The 2008 appropriation includes $34,969,000 for 2007 and $73,687,000 for 2008.
90.10 	The 2009 appropriation includes $36,954,000 for 2008 and $73,872,000 for 2009.
90.11 		Subd. 6.Transition for disabled students. For aid for transition programs for 
90.12 	children with disabilities under Minnesota Statutes, section 124D.454:

90.13		$
	879,000
	.....
	2008
	
90.14 	The 2008 appropriation includes $879,000 for 2007 and $0 for 2008.
90.15 		Subd. 7.Court-placed special education revenue. For reimbursing serving 
90.16 	school districts for unreimbursed eligible expenditures attributable to children placed in 
90.17 	the serving school district by court action under Minnesota Statutes, section 125A.79, 
90.18 	subdivision 4:

90.19		$
	72,000
	.....
	2008
	
90.20		$
	74,000
	.....
	2009
	
90.21 		Subd. 8.Special education out-of-state tuition. For special education out-of-state 
90.22 	tuition according to Minnesota Statutes, section 125A.79, subdivision 8:

90.23		$
	250,000
	.....
	2008
	
90.24		$
	250,000
	.....
	2009
	
90.25 		Subd. 9.Special Education Task Force. For the task force to compare federal 
90.26 	and state special education requirements:

90.27		$
	20,000
	.....
	2008
	
90.28 	This is a onetime appropriation.

90.29 	Sec. 25.  REPEALER.
 90.30 	(a) Minnesota Statutes 2006, sections 125A.10; and 125A.75, subdivision 6, are 
90.31 	repealed.
91.1 	(b) Minnesota Statutes 2006, sections 124D.454, subdivisions 4, 5, 6, and 7; and 
91.2 	125A.76, subdivision 3, are repealed effective for revenue for fiscal year 2008.

91.3 	ARTICLE 4
91.4 	FACILITIES AND TECHNOLOGY

91.5 	Section 1. Minnesota Statutes 2006, section 123A.44, is amended to read:
91.6 	123A.44 CITATION.
91.7 	Sections 123A.441 to 123A.446 may be cited as the "Cooperative Secondary
91.8 	Facilities Grant Act." 

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

91.10 	Sec. 2. Minnesota Statutes 2006, section 123A.441, is amended to read:
91.11 	123A.441 POLICY AND PURPOSE.
91.12 	Because of the rates of decline in school-aged population, population shifts and 
91.13 	economic changes that the state has experienced in recent years and anticipates in future 
91.14 	years, and because in some instances local districts have not, and will not be able to 
91.15 	provide the required construction funds through local property taxes, the purpose of the 
91.16 	cooperative secondary facilities grant program is to provide an incentive to encourage 
91.17 	cooperation in making available to all secondary students those educational programs, 
91.18 	services and facilities that are most efficiently and effectively provided by a cooperative 
91.19 	effort of several school districts. The policy and purpose of sections 123A.442 to 
91.20 	123A.446 is to use the credit of the state, to a limited degree, to provide grants to 
91.21 	cooperating groups of districts to improve and expand the educational opportunities and 
91.22 	facilities available to their secondary students. 

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

91.24 	Sec. 3. Minnesota Statutes 2006, section 123A.442, is amended to read:
91.25 	123A.442 APPROVAL AUTHORITY; APPLICATION FORMS.
91.26 		Subdivision 1.Approval by commissioner. To the extent money is available, the 
91.27 	commissioner may approve projects from applications submitted under section 123A.443. 
91.28 	The grant money must be used only to acquire, construct, remodel or improve the building 
91.29 	or site of a cooperative secondary facility under contracts to be entered into within 15 
91.30 	months after the date on which each grant is awarded. 
92.1 		Subd. 2.Cooperation and combination. Districts that have not already 
92.2 	consolidated and receive a cooperative secondary facilities grant after May 1, 1991, shall:
92.3 	(1) submit a consolidation plan as set forth in under section 123A.36 123A.48 for 
92.4 	approval by the State Board of Education before December 31, 1999, or Department of 
92.5 	Education after December 30, 1999; and 
92.6 	(2) hold a referendum on the question of combination consolidation no later than 
92.7 	four years after a grant is awarded under subdivision 1.
92.8 	The districts are eligible for cooperation and combination consolidation revenue 
92.9 	under section 123A.39, subdivision 3 123A.485. 
92.10 		Subd. 3.Consolidated districts. A school district that has consolidated with 
92.11 	another school district since July 1, 1980, is eligible for a cooperative facilities grant.

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

92.13 	Sec. 4. Minnesota Statutes 2006, section 123A.443, is amended to read:
92.14 	123A.443 GRANT APPLICATION PROCESS.
92.15 		Subdivision 1.Qualification. Any group of districts or a consolidated district
92.16 	that meets the criteria required under subdivision 2 may apply for an incentive grant for 
92.17 	construction of a new secondary facility or for remodeling and improving an existing 
92.18 	secondary facility. A grant for new construction must not exceed the lesser of $5,000,000
92.19 	$20,000,000 or 75 percent of the approved construction costs of a cooperative secondary
92.20 	education facility. A grant for remodeling and improving an existing facility must not 
92.21 	exceed $200,000 the lesser of $10,000,000, or 75 percent of the approved remodeling 
92.22 	costs.
92.23 		Subd. 2.Review by commissioner. (a) A group of districts or a consolidated district 
92.24 	that submits an application for a grant must submit a proposal to the commissioner for 
92.25 	review and comment under section 123B.71. The commissioner shall prepare a review 
92.26 	and comment on the proposed facility by July 1 of an odd-numbered year, regardless of 
92.27 	the amount of the capital expenditure required to acquire, construct, remodel or improve 
92.28 	the secondary facility. The commissioner shall not approve an application for an incentive 
92.29 	grant for any secondary facility unless the facility receives a favorable review and 
92.30 	comment under section 123B.71 and the following criteria are met: 
92.31 	(1) the applicant is a consolidated district or a minimum of two or more districts, 
92.32 	with kindergarten to grade 12 enrollments in each district of no more than 1,200 pupils, 
92.33 	enter that have entered into a joint powers agreement;
93.1 	(2) for a group of districts, a joint powers board representing all participating 
93.2 	districts is established under section 471.59 to govern the cooperative secondary facility; 
93.3 	(3) the planned secondary facility will result in the joint powers district meeting the 
93.4 	requirements of Minnesota Rules, parts 3500.2010 and 3500.2110;
93.5 	(4) at least 198 pupils would be served in grades 10 to 12, 264 pupils would be 
93.6 	served in grades 9 to 12, or 396 pupils would be served in grades 7 to 12;
93.7 	(5)(3) for a group of districts, no more than one superintendent is employed by the 
93.8 	joint powers board as a result of the cooperative secondary facility agreement;
93.9 	(6) (4) a statement of need is submitted, that may include reasons why the current 
93.10 	secondary facilities are inadequate, unsafe or inaccessible to persons with disabilities;
93.11 	(7) (5) an educational plan is prepared, that includes input from both community and 
93.12 	professional staff;
93.13 	(8) (6) for a group of districts, a combined seniority list for all participating districts 
93.14 	is developed by the joint powers board;
93.15 	(9) (7) for a group of districts, an education program is developed that provides for 
93.16 	more learning opportunities and course offerings, including the offering of advanced 
93.17 	placement courses, for students than is currently available in any single member district;
93.18 	(10) (8) a plan is developed for providing instruction of any resident students in 
93.19 	other districts when distance to the secondary education facility makes attendance at the 
93.20 	facility unreasonably difficult or impractical; and
93.21 	(11) (9) for a secondary facility, the joint powers board established under clause (2) 
93.22 	discusses with technical colleges located in the area how vocational education space in 
93.23 	the cooperative secondary facility could be jointly used for secondary and postsecondary 
93.24 	purposes.
93.25 	(b) To the extent possible, the joint powers board is encouraged to provide for 
93.26 	severance pay or for early retirement incentives under section 122A.48, for any teacher 
93.27 	or administrator, as defined under section 122A.40, subdivision 1, who is placed on 
93.28 	unrequested leave as a result of the cooperative secondary facility agreement. 
93.29 	(c) For the purpose of paragraph (a), clause (8) (6), each district must be considered 
93.30 	to have started school each year on the same date.
93.31 	(d) The districts may develop a plan that provides for the location of social service, 
93.32 	health, and other programs serving pupils and community residents within the cooperative 
93.33 	secondary facility. The commissioner shall consider this plan when preparing a review 
93.34 	and comment on the proposed facility.
93.35 	(e) The districts must schedule and conduct a meeting on library services. The 
93.36 	school districts, in cooperation with the regional public library system and its appropriate 
94.1 	member libraries, must discuss the possibility of including jointly operated library services 
94.2 	at the cooperative secondary facility.
94.3 	(f) The board of a district that has reorganized under section 123A.37 or 123A.48
94.4 	and that is applying for a grant for remodeling or improving an existing facility may act in 
94.5 	the place of a joint powers board to meet the criteria of this subdivision. 
94.6 		Subd. 3.Reorganizing districts. A district that is a member of a joint powers 
94.7 	board established under subdivision 2 and that is planning to reorganize under section 
94.8 	123A.45, 123A.46, or 123A.48 must notify the joint powers board one year in advance of 
94.9 	the effective date of the reorganization. Notwithstanding section 471.59 or any other law 
94.10 	to the contrary, the board of a district that reorganizes under section 123A.45, 123A.46, or 
94.11 	123A.48 may appoint representatives to the joint powers board who will serve on the joint 
94.12 	powers board for two years after the effective date of the reorganization if authorized in 
94.13 	the agreement establishing the joint powers board to govern the cooperative secondary
94.14 	facility. These representatives shall have the same powers as representatives of any other 
94.15 	school district under the joint powers agreement. 
94.16 		Subd. 4.District procedures. A joint powers board of a secondary district 
94.17 	established under subdivision 2 or a school board of a reorganized district that intends 
94.18 	to apply for a grant must adopt a resolution stating the proposed costs of the project, 
94.19 	the purpose for which the costs are to be incurred, and an estimate of the dates when 
94.20 	the facilities for which the grant is requested will be contracted for and completed. 
94.21 	Applications for the state grants must be accompanied by (a) a copy of the resolution, (b) 
94.22 	a certificate by the clerk and treasurer of the joint powers board showing the current 
94.23 	outstanding indebtedness of each member district, and (c) a certificate by the county 
94.24 	auditor of each county in which a portion of the joint powers district lies showing the 
94.25 	information in the auditor's official records that is required to be used in computing the 
94.26 	debt limit of the district under section 475.53, subdivision 4. The clerk's and treasurer's 
94.27 	certificate must show, as to each outstanding bond issue of each member district, the 
94.28 	amount originally issued, the purpose for which issued, the date of issue, the amount 
94.29 	remaining unpaid as of the date of the resolution, and the interest rates and due dates 
94.30 	and amounts of principal thereon. Applications and necessary data must be in the 
94.31 	form prescribed by the commissioner and the rules of the State Board of Education 
94.32 	before December 31, 1999, and after December 30, 1999, in the form prescribed by the 
94.33 	commissioner. Applications must be received by the commissioner by September 1 of an 
94.34 	odd-numbered year. When an application is received, the commissioner shall obtain from 
94.35 	the commissioner of revenue, and from the Public Utilities Commission when required, 
95.1 	the information in their official records that is required to be used in computing the debt 
95.2 	limit of the joint powers district under section 475.53, subdivision 4. 
95.3 		Subd. 5.Award of grants. By November 1 of the odd-numbered year, the 
95.4 	commissioner shall examine and consider all applications for grants, and if any district is 
95.5 	found not qualified, the commissioner shall promptly notify that board.
95.6 	A grant award is subject to verification by the district as specified in subdivision 
95.7 	8. A grant award for a new facility must not be made until the site of the secondary
95.8 	facility has been determined. A grant award to remodel or improve an existing facility 
95.9 	must not be made until the districts have reorganized. If the total amount of the approved 
95.10 	applications exceeds the amount that is or can be made available, the commissioner shall 
95.11 	first award grants to districts that will close at least one existing school building, and then, 
95.12 	to the extent funds remain, allot the available amount equally between the any other
95.13 	approved applicant districts. The commissioner shall promptly certify to each qualified 
95.14 	district the amount, if any, of the grant awarded to it.
95.15 		Subd. 6.Collocation grant. A group of districts that receives a grant for a new 
95.16 	facility under subdivision 4 is also eligible to receive an additional grant in the amount of 
95.17 	$1,000,000. To receive the additional grant, the group of districts must develop a plan 
95.18 	under subdivision 2, paragraph (d), that provides for the location of a significant number 
95.19 	of noneducational student and community service programs within the cooperative 
95.20 	secondary facility.
95.21 		Subd. 7.Referendum; bond issue. Within 180 days after being awarded a grant 
95.22 	for a new facility under subdivision 5, the joint powers board must submit the question 
95.23 	of authorizing the borrowing of funds for the secondary facility to the voters of the joint 
95.24 	powers district at a special election, which may be held in conjunction with the annual
95.25 	general election of the school board members of the member districts. The question 
95.26 	submitted must state the total amount of funding needed from all sources. A majority of 
95.27 	those voting in the affirmative on the question is sufficient to authorize the joint powers 
95.28 	board to accept the grant and to issue the bonds on public sale in accordance with
95.29 	according to chapter 475. The clerk of the joint powers board must certify the vote of 
95.30 	the bond election to the commissioner. If the question is approved by the voters, the 
95.31 	commissioner shall notify the approved applicant districts that the grant amount certified 
95.32 	under subdivision 5 is available and appropriated for payment under this subdivision. 
95.33 	If a majority of those voting on the question do not vote in the affirmative, the grant 
95.34 	must be canceled.
95.35 		Subd. 8.Contract. Each grant must be evidenced by a contract between the board 
95.36 	and the state acting through the commissioner. The contract obligates the state to pay to 
96.1 	the board an amount computed according to subdivision 5, and according to a schedule, 
96.2 	and terms and conditions acceptable to the commissioner of finance.
96.3 		Subd. 9.Consolidation. A group of districts that operates a cooperative secondary
96.4 	facility that was acquired, constructed, remodeled, or improved under this section and 
96.5 	implements consolidation proceedings according to section 123A.48, may propose a 
96.6 	temporary school board structure in the petition or resolution required under section 
96.7 	123A.48, subdivision 2. The districts may propose the number of existing school board 
96.8 	members of each district to become members of the board of the consolidated district 
96.9 	and a method to gradually reduce the membership to six or seven. The proposal must 
96.10 	be approved, disapproved, or modified by the state board of education commissioner. 
96.11 	The election requirements of section 123A.48, subdivision 20, do not apply to a 
96.12 	proposal approved by the state board. Elections conducted after the effective date of the 
96.13 	consolidation are subject to the Minnesota Election Law. 

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

96.15 	Sec. 5. Minnesota Statutes 2006, section 123B.53, subdivision 1, is amended to read:
96.16 		Subdivision 1.Definitions. (a) For purposes of this section, the eligible debt service 
96.17 	revenue of a district is defined as follows:
96.18 	(1) the amount needed to produce between five and six percent in excess of the 
96.19 	amount needed to meet when due the principal and interest payments on the obligations 
96.20 	of the district for eligible projects according to subdivision 2, including the amounts 
96.21 	necessary for repayment of energy loans according to section 216C.37 or sections 298.292
96.22 	to 298.298, debt service loans and capital loans, lease purchase payments under section 
96.23 	126C.40, subdivision 2, alternative facilities levies under section 123B.59, subdivision 
96.24 	5,  paragraph (a), minus
96.25 	(2) the amount of debt service excess levy reduction for that school year calculated 
96.26 	according to the procedure established by the commissioner.
96.27 	(b) The obligations in this paragraph are excluded from eligible debt service revenue:
96.28 	(1) obligations under section 123B.61;
96.29 	(2) the part of debt service principal and interest paid from the taconite environmental 
96.30 	protection fund or Douglas J. Johnson economic protection trust;
96.31 	(3) obligations issued under Laws 1991, chapter 265, article 5, section 18, as 
96.32 	amended by Laws 1992, chapter 499, article 5, section 24; and
96.33 	(4) obligations under section 123B.62.
96.34 	(c) For purposes of this section, if a preexisting school district reorganized under 
96.35 	sections 123A.35 to 123A.43, 123A.46, and 123A.48 is solely responsible for retirement 
97.1 	of the preexisting district's bonded indebtedness, capital loans or debt service loans, debt 
97.2 	service equalization aid must be computed separately for each of the preexisting districts.
97.3 	(d) For purposes of this section, the adjusted net tax capacity determined according 
97.4 	to section 127A.48 shall be adjusted to include a portion of the tax capacity of property 
97.5 	generally exempted from ad valorem taxes under section 272.02, subdivisions subdivision
97.6 	64 and 65, equal to the product of that tax capacity times the ratio of the eligible debt 
97.7 	service revenue attributed to general obligation bonds to the total eligible debt service 
97.8 	revenue of the district.

97.9 	Sec. 6. Minnesota Statutes 2006, section 123B.54, is amended to read:
97.10 	123B.54 DEBT SERVICE APPROPRIATION.
97.11 	(a) $21,624,000 $14,813,000 in fiscal year 2008 and $20,403,000, $11,124,000 in 
97.12 	fiscal year 2009, $8,866,000 in fiscal year 2010, and $6,631,000 in fiscal year 2011 and 
97.13 	later are appropriated from the general fund to the commissioner of education for payment 
97.14 	of debt service equalization aid under section 123B.53.
97.15 	(b) The appropriations in paragraph (a) must be reduced by the amount of any 
97.16 	money specifically appropriated for the same purpose in any year from any state fund.

97.17 	EFFECTIVE DATE. This section is effective for revenue for fiscal year 2009.

97.18 	Sec. 7. Minnesota Statutes 2006, section 123B.57, subdivision 3, is amended to read:
97.19 		Subd. 3.Health and safety revenue. A district's health and safety revenue 
97.20 	for a fiscal year equals the district's alternative facilities levy under section 123B.59, 
97.21 	subdivision 5, paragraph (b), plus the greater of zero or:
97.22 	(1) the sum of (a) the total approved cost of the district's hazardous substance 
97.23 	plan for fiscal years 1985 through 1989, plus (b) the total approved cost of the district's 
97.24 	health and safety program for fiscal year 1990 through the fiscal year to which the levy 
97.25 	is attributable, excluding expenditures funded with bonds issued under section 123B.59
97.26 	or 123B.62, or chapter 475; certificates of indebtedness or capital notes under section 
97.27 	123B.61; levies under section 123B.58, 123B.59, 123B.63, or 126C.40, subdivision 1 or 
97.28 	6; and other federal, state, or local revenues, minus 
97.29 	(2) the sum of (a) the district's total hazardous substance aid and levy for fiscal years 
97.30 	1985 through 1989 under sections 124.245 and 275.125, subdivision 11c, plus (b) the 
97.31 	district's health and safety revenue under this subdivision, for years before the fiscal year 
97.32 	to which the levy is attributable. 

97.33 	EFFECTIVE DATE. This section is effective for revenue for fiscal year 2009.

98.1 	Sec. 8. Minnesota Statutes 2006, section 123B.63, subdivision 3, is amended to read:
98.2 		Subd. 3.Capital project levy referendum. A district may levy the local tax 
98.3 	rate approved by a majority of the electors voting on the question to provide funds for 
98.4 	an approved project. The election must take place no more than five years before the 
98.5 	estimated date of commencement of the project. The referendum must be held on a date 
98.6 	set by the board. A referendum for a project not receiving a positive review and comment 
98.7 	by the commissioner under section 123B.71 must be approved by at least 60 percent of the 
98.8 	voters at the election. The referendum may be called by the school board and may be held: 
98.9 	(1) separately, before an election for the issuance of obligations for the project 
98.10 	under chapter 475; or
98.11 	(2) in conjunction with an election for the issuance of obligations for the project 
98.12 	under chapter 475; or
98.13 	(3) notwithstanding section 475.59, as a conjunctive question authorizing both the 
98.14 	capital project levy and the issuance of obligations for the project under chapter 475. Any 
98.15 	obligations authorized for a project may be issued within five years of the date of the 
98.16 	election. 
98.17 	The ballot must provide a general description of the proposed project, state the 
98.18 	estimated total cost of the project, state whether the project has received a positive or 
98.19 	negative review and comment from the commissioner, state the maximum amount of the 
98.20 	capital project levy as a percentage of net tax capacity, state the amount that will be raised 
98.21 	by that local tax rate in the first year it is to be levied, and state the maximum number of 
98.22 	years that the levy authorization will apply.
98.23 	The ballot must contain a textual portion with the information required in this 
98.24 	section and a question stating substantially the following:
98.25 	"Shall the capital project levy proposed by the board of .......... School District 
98.26 	No. .......... be approved?"
98.27 	If approved, the amount provided by the approved local tax rate applied to the net 
98.28 	tax capacity for the year preceding the year the levy is certified may be certified for the 
98.29 	number of years, not to exceed ten, approved.
98.30 	In the event a conjunctive question proposes to authorize both the capital project 
98.31 	levy and the issuance of obligations for the project, appropriate language authorizing the 
98.32 	issuance of obligations must also be included in the question.
98.33 	The district must notify the commissioner of the results of the referendum.

98.34 	EFFECTIVE DATE. This section is effective July 1, 2007, for elections conducted 
98.35 	on or after that day.

99.1 	Sec. 9. Minnesota Statutes 2006, section 128D.11, subdivision 3, is amended to read:
99.2 		Subd. 3.No election. Subject to the provisions of subdivisions 7 to 10, the school 
99.3 	district may also by a two-thirds majority vote of all the members of its board of education 
99.4 	and without any election by the voters of the district, issue and sell in each calendar year 
99.5 	general obligation bonds of the district in an amount not to exceed 5-1/10 per cent of the 
99.6 	net tax capacity of the taxable property in the district (plus, for calendar years 1990 to 
99.7 	2003, an amount not to exceed $7,500,000, and for calendar years 2004 to 20082016 an 
99.8 	amount not to exceed $15,000,000; with an additional provision that any amount of bonds 
99.9 	so authorized for sale in a specific year and not sold can be carried forward and sold in 
99.10 	the year immediately following).

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

99.12 	Sec. 10. Minnesota Statutes 2006, section 272.02, subdivision 64, is amended to read:
99.13 		Subd. 64.Job opportunity building zone property. (a) Improvements to real 
99.14 	property, and personal property, classified under section 273.13, subdivision 24, and 
99.15 	located within a job opportunity building zone, designated under section 469.314, are 
99.16 	exempt from ad valorem taxes levied under chapter 275.
99.17 	(b) Improvements to real property, and tangible personal property, of an agricultural 
99.18 	production facility located within an agricultural processing facility zone, designated 
99.19 	under section 469.314, is exempt from ad valorem taxes levied under chapter 275.
99.20 	(c) For property to qualify for exemption under paragraph (a), the occupant must be 
99.21 	a qualified business, as defined in section 469.310.
99.22 	(d) The exemption applies beginning for the first assessment year after designation 
99.23 	of the job opportunity building zone by the commissioner of employment and economic 
99.24 	development. The exemption applies to each assessment year that begins during the 
99.25 	duration of the job opportunity building zone. To be exempt, the property must be 
99.26 	occupied by July 1 of the assessment year by a qualified business that has signed the 
99.27 	business subsidy agreement and relocation agreement, if required, by July 1 of the 
99.28 	assessment year. This exemption does not apply to:
99.29 	(1) the levy under section 475.61 or similar levy provisions under any other law to 
99.30 	pay general obligation bonds; or
99.31 	(2) a levy under section 126C.17, if the levy was approved by the voters before the 
99.32 	designation of the job opportunity building zoneother school district levies included in 
99.33 	the debt service levy of the district under section 123B.55.

99.34 	EFFECTIVE DATE. This section is effective for taxes payable in 2008.

100.1 	Sec. 11. SCHOOL TECHNOLOGY AND OPERATING CAPITAL AID.
 100.2 	For fiscal years 2008, and 2009 only, school technology and operating capital aid 
100.3 	equals $40 for fiscal year 2008 and $55 for fiscal year 2009 times the district's adjusted 
100.4 	marginal cost pupil units for that fiscal year. This aid must only be used for the purposes 
100.5 	of Minnesota Statutes, section 126C.10, subdivision 14.

100.6 	EFFECTIVE DATE. This section is effective for revenue for fiscal years 2008 
100.7 	and 2009.

100.8 	Sec. 12. BONDING AUTHORIZATION.
 100.9 	To provide funds for the acquisition or betterment of school facilities, Independent 
100.10 	School District No. 625, St. Paul, may by two-thirds majority vote of all the members of 
100.11 	the board of directors issue general obligation bonds in one or more series for calendar 
100.12 	years 2008 through 2016, as provided in this section. The aggregate principal amount of 
100.13 	any bonds issued under this section for each calendar year must not exceed $15,000,000. 
100.14 	Issuance of the bonds is not subject to Minnesota Statutes, section 475.58 or 475.59. 
100.15 	The bonds must otherwise be issued as provided in Minnesota Statutes, chapter 475. 
100.16 	The authority to issue bonds under this section is in addition to any bonding authority 
100.17 	authorized by Minnesota Statutes, chapter 123B, or other law. The amount of bonding 
100.18 	authority authorized under this section must be disregarded in calculating the bonding 
100.19 	limit of Minnesota Statutes, chapter 123B, or any other law other than Minnesota Statutes, 
100.20 	section 475.53, subdivision 4.

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

100.22 	Sec. 13. TAX LEVY FOR DEBT SERVICE.
 100.23 	To pay the principal of and interest on bonds issued under section 12, Independent 
100.24 	School District No. 625, St. Paul, must levy a tax annually in an amount sufficient 
100.25 	under Minnesota Statutes, section 475.61, subdivisions 1 and 3, to pay the principal of 
100.26 	and interest on the bonds. The tax authorized under this section is in addition to the 
100.27 	taxes authorized to be levied under Minnesota Statutes, chapter 123B, 124D, or 126C, or 
100.28 	other law.

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

100.30 	Sec. 14. ADMINISTRATIVE LEASE LEVY; SPRING LAKE PARK.
 100.31 	Notwithstanding the instructional purposes limitation of Minnesota Statutes, section 
100.32 	126C.40, subdivision 1, Independent School District No. 16, Spring Lake Park, may 
101.1 	lease administrative space under Minnesota Statutes, section 126C.40, subdivision 1, if 
101.2 	the district can demonstrate to the satisfaction of the commissioner of education that 
101.3 	the administrative space is less expensive than instruction space that the district would 
101.4 	otherwise lease. A school district may not levy under this section for more than five years. 
101.5 	The commissioner must deny this levy authority unless the district passes a resolution 
101.6 	stating its intent to lease instructional space under Minnesota Statutes, section 126C.40, 
101.7 	subdivision 1, if the commissioner does not grant authority under this section. The 
101.8 	resolution must also certify that a lease of administrative space under this section is less 
101.9 	expensive than the district's proposed instructional lease. Levy authority under this section 
101.10 	shall not exceed the total levy authority under Minnesota Statutes, section 126C.40, 
101.11 	subdivision 1, paragraph (e). 

101.12 	EFFECTIVE DATE. This section is effective for taxes payable in 2008.

101.13 	Sec. 15. HEALTH AND SAFETY REVENUE; CLEARBROOK-GONVICK.
 101.14 	Notwithstanding Minnesota Statutes, section 123B.57, Independent School District 
101.15 	No. 2311, Clearbrook-Gonvick, may use health and safety revenue for the demolition of 
101.16 	the Gonvick school building. The district must recognize the revenue under this section 
101.17 	in fiscal year 2008.

101.18 	EFFECTIVE DATE. This section is effective for taxes payable in 2008.

101.19 	Sec. 16. APPROPRIATIONS.
 101.20 		Subdivision 1.Department of Education. The sums indicated in this section are 
101.21 	appropriated from the general fund to the Department of Education for the fiscal years 
101.22 	designated.
101.23 		Subd. 2.Health and safety revenue. For health and safety aid according to 
101.24 	Minnesota Statutes, section 123B.57, subdivision 5:

101.25		$
	190,000
	.....
	2008
	
101.26		$
	179,000
	.....
	2009
	
101.27 	The 2008 appropriation includes $20,000 for 2007 and $170,000 for 2008.
101.28 	The 2009 appropriation includes $18,000 for 2008 and $161,000 for 2009.
101.29 		Subd. 3.Debt service equalization. For debt service aid according to Minnesota 
101.30 	Statutes, section 123B.53, subdivision 6:

101.31		$
	 14,813,000
	.....
	2008
	
101.32		$
	11,124,000
	.....
	2009
	
102.1 	The 2008 appropriation includes $1,767,000 for 2007 and $13,046,000 for 2008.
102.2 	The 2009 appropriation includes $1,450,000 for 2008 and $9,674,000 for 2009.
102.3 		Subd. 4.Alternative facilities bonding aid. For alternative facilities bonding aid, 
102.4 	according to Minnesota Statutes, section 123B.59, subdivision 1:

102.5		$
	19,287,000
	.....
	2008
	
102.6		$
	19,287,000
	.....
	2009
	
102.7 	The 2008 appropriation includes $1,928,000 for 2007 and $17,359,000 for 2008.
102.8 	The 2009 appropriation includes $1,928,000 for 2008 and $17,359,000 for 2009.
102.9 		Subd. 5.Equity in telecommunications access. For equity in telecommunications 
102.10 	access:

102.11		$
	7,622,000
	.....
	2008
	
102.12		$
	8,743,000
	.....
	2009
	
102.13 	If the appropriation amount is insufficient, the commissioner shall reduce the 
102.14 	reimbursement rate in Minnesota Statutes, section 125B.26, subdivisions 4 and 5, and the 
102.15 	revenue for fiscal years 2008 and 2009 shall be prorated.
102.16 	Any balance in the first year does not cancel but is available in the second year.
102.17 	The base appropriation for fiscal year 2010 and later is $3,750,000. 
102.18 		Subd. 6.Deferred maintenance aid. For deferred maintenance aid, according to 
102.19 	Minnesota Statutes, section 123B.591, subdivision 4:

102.20		$
	3,290,000
	.....
	2008
	
102.21		$
	2,667,000
	.....
	2009
	
102.22 	The 2008 appropriation includes $0 for 2007 and $3,290,000 for 2008.
102.23 	The 2009 appropriation includes $365,000 for 2008 and $2,302,000 for 2009.
102.24 		Subd. 7.Rocori school district. For Rocori, Independent School District No. 
102.25 	750, for Project Serv:

102.26		$
	53,000
	.....
	2008
	
102.27 		Subd. 8.School technology and operating capital aid grants. For school 
102.28 	technology and operating capital grants under section 11:

102.29		$
	 38,145,000
	.....
	2008
	
102.30		$
	 52,676,000
	.....
	2009
	
102.31 	This is a onetime appropriation.
103.1 		Subd. 9.Eden Valley-Watkins; environmental remediation. For a grant to 
103.2 	Independent School District No. 463, Eden Valley-Watkins, to recover the amount actually 
103.3 	spent on environmental remediation efforts related to the cleanup of a mercury spill.

103.4		$
	126,000
	.....
	2008

103.5 	ARTICLE 5
103.6 	NUTRITION AND ACCOUNTING

103.7 	Section 1. Minnesota Statutes 2006, section 123B.10, subdivision 1, is amended to read:
103.8 		Subdivision 1.Budgets; form of notification. (a) Every board must publish revenue 
103.9 	and expenditure budgets for the current year and the actual revenues, expenditures, fund 
103.10 	balances for the prior year and projected fund balances for the current year in a form 
103.11 	prescribed by the commissioner within one week of the acceptance of the final audit by 
103.12 	the board, or November 30, whichever is earlier. The forms prescribed must be designed 
103.13 	so that year to year comparisons of revenue, expenditures and fund balances can be made. 
103.14 	These budgets, reports of revenue, expenditures and fund balances must be published in 
103.15 	a qualified newspaper of general circulation in the district or on the district's official 
103.16 	Web site. If published on the district's official Web site, the district must also publish an 
103.17 	announcement in a qualified newspaper of general circulation in the district that includes 
103.18 	the Internet address where the information has been posted.
103.19 	(b) A school board annually must notify the public of its revenue, expenditures, fund 
103.20 	balances, and other relevant budget information. The board must include the budget 
103.21 	information required by this section in the materials provided as a part of its truth in 
103.22 	taxation hearing, post the materials in a conspicuous place on the district's official Web 
103.23 	site, including a link to the district's school report card on the Department of Education's 
103.24 	Web site, and publish the information in a qualified newspaper of general circulation 
103.25 	in the district.

103.26 	Sec. 2. Minnesota Statutes 2006, section 123B.77, subdivision 4, is amended to read:
103.27 		Subd. 4.Budget approval. Prior to July 1 of each year, the board of each district 
103.28 	must approve and adopt its revenue and expenditure budgets for the next school year. 
103.29 	The budget document so adopted must be considered an expenditure-authorizing or 
103.30 	appropriations document. No funds shall be expended by any board or district for any 
103.31 	purpose in any school year prior to the adoption of the budget document which authorizes 
103.32 	that expenditure, or prior to an amendment to the budget document by the board to 
103.33 	authorize the expenditure. Expenditures of funds in violation of this subdivision shall be 
103.34 	considered unlawful expenditures. Prior to the appropriation of revenue for the next 
104.1 	school year in the initial budget, the board shall inform the principal or other responsible 
104.2 	administrative authority of each site of the amount of general education and referendum 
104.3 	revenue that the Department of Education estimates will be generated by the pupils 
104.4 	in attendance at each site. For purposes of this subdivision, a district may adjust the 
104.5 	department's estimates for school building openings, school building closings, changes 
104.6 	in attendance area boundaries, or other changes in programs or student demographics 
104.7 	not reflected in the department's calculations. A district must report to the department 
104.8 	any adjustments it makes according to this subdivision in the department's estimates 
104.9 	of compensatory revenue generated by the pupils in attendance at each site, and the 
104.10 	department must use the adjusted compensatory revenue estimates in preparing the report 
104.11 	required under section 123B.76, subdivision 3, paragraph (c).

104.12 	Sec. 3. Minnesota Statutes 2006, section 123B.79, subdivision 8, is amended to read:
104.13 		Subd. 8.Account transfer for reorganizing districts. A district that has 
104.14 	reorganized according to sections 123A.35 to 123A.43, 123A.46, or 123A.48, or has 
104.15 	conducted a successful referendum on the question of combination under section 
104.16 	123A.37, subdivision 2, or consolidation under section 123A.48, subdivision 15, or has 
104.17 	been assigned an identification number by the commissioner under section 123A.48, 
104.18 	subdivision 16, may make permanent transfers between any of the funds or accounts in 
104.19 	the newly created or enlarged district with the exception of the debt redemption fund, 
104.20 	food service fund, and health and safety account of the capital expenditure fund. Fund 
104.21 	transfers under this section may be made for up to one year prior to the effective date of 
104.22 	combination or consolidation by the consolidating boards and during the year following 
104.23 	the effective date of reorganization by the consolidated board. The newly formed board of 
104.24 	the combined district may adopt a resolution on or before August 30 of the year of the 
104.25 	reorganization authorizing a transfer among accounts or funds of the previous independent 
104.26 	school districts which transfer or transfers shall be reported in the affected districts' 
104.27 	audited financial statements for the year immediately preceding the consolidation. 

104.28 	Sec. 4. Minnesota Statutes 2006, section 123B.79, is amended by adding a subdivision 
104.29 	to read:
104.30 		Subd. 9.Elimination of reserve accounts. A school board shall eliminate all 
104.31 	reserve accounts established in the school district's general fund under Minnesota Statutes 
104.32 	before July 1, 2006, for which no specific authority remains in statute as of June 30, 
104.33 	2007. Any balance in the district's reserved for bus purchases account as of June 30, 
104.34 	2007, shall be transferred to the reserved account for operating capital in the school 
105.1 	district's general fund. Any balance in other reserved accounts established in the school 
105.2 	district's general fund under Minnesota Statutes before July 1, 2006, for which no specific 
105.3 	authority remains in statute as of June 30, 2007, shall be transferred to the school district's 
105.4 	unreserved general fund balance. A school board may, upon adoption of a resolution by 
105.5 	the school board, establish a designated account for any program for which a reserved 
105.6 	account has been eliminated.

105.7 	EFFECTIVE DATE. This section is effective June 30, 2007.

105.8 	Sec. 5. Minnesota Statutes 2006, section 124D.111, subdivision 1, is amended to read:
105.9 		Subdivision 1.School lunch aid computation. Each school year, the state must pay 
105.10 	participants in the national school lunch program the amount of 10.5 12 cents for each full 
105.11 	paid, reduced, and free student lunch served to students.

105.12 	Sec. 6. Minnesota Statutes 2006, section 126C.15, subdivision 2, is amended to read:
105.13 		Subd. 2.Building allocation. (a) A district must allocate its compensatory 
105.14 	revenue to each school building in the district where the children who have generated the 
105.15 	revenue are served unless the school district has received permission under Laws 2005, 
105.16 	First Special Session chapter 5, article 1, section 50, to allocate compensatory revenue 
105.17 	according to student performance measures developed by the school board.
105.18 	(b) Notwithstanding paragraph (a), a district may allocate up to five percent of the 
105.19 	amount of compensatory revenue that the district receives to school sites according to a 
105.20 	plan adopted by the school board. The money reallocated under this paragraph must be 
105.21 	spent for the purposes listed in subdivision 1, but may be spent on students in any grade, 
105.22 	including students attending school readiness or other prekindergarten programs.
105.23 	(c) For the purposes of this section and section 126C.05, subdivision 3, "building" 
105.24 	means education site as defined in section 123B.04, subdivision 1.
105.25 	(d) If the pupil is served at a site other than one owned and operated by the district, 
105.26 	the revenue shall be paid to the district and used for services for pupils who generate the 
105.27 	revenue.
105.28 	(e) A district with school building openings, school building closings, changes 
105.29 	in attendance area boundaries, or other changes in programs or student demographics 
105.30 	between the prior year and the current year may reallocate compensatory revenue among 
105.31 	sites to reflect these changes. A district must report to the department any adjustments it 
105.32 	makes according to this paragraph and the department must use the adjusted compensatory 
105.33 	revenue allocations in preparing the report required under section 123B.76, subdivision 3, 
105.34 	paragraph (c).

106.1 	Sec. 7. Minnesota Statutes 2006, section 126C.41, is amended by adding a subdivision 
106.2 	to read:
106.3 		Subd. 6.Levy authority for unfunded severance and retirement costs. (a) A 
106.4 	school district qualifies for eligibility under this section if the district:
106.5 	(1) participated in the cooperative secondary facilities program;
106.6 	(2) consolidated with at least two other school districts; and
106.7 	(3) has unfunded severance or retirement costs.
106.8 	(b) An eligible school district may annually levy up to $150,000 for unfunded 
106.9 	severance or retirement costs. This levy authority expires after taxes payable in 2017.
106.10 	(c) A school district that levies under this section must reserve the proceeds of the 
106.11 	levy and spend those amounts only for unfunded severance or retirement costs.

106.12 	EFFECTIVE DATE. This section is effective for taxes payable in 2008.

106.13 	Sec. 8. Minnesota Statutes 2006, section 126C.48, subdivision 2, is amended to read:
106.14 		Subd. 2.Notice to commissioner; forms. By October 7 of each year each 
106.15 	district must notify the commissioner of the proposed levies in compliance with the levy 
106.16 	limitations of this chapter and chapters 120B, 122A, 123A, 123B, 124D, 125A, 127A, and 
106.17 	136D. A school district that has reached an agreement with its home county auditor to 
106.18 	extend the date of certification of its proposed levy under section 275.065, subdivision 1, 
106.19 	must submit its notice of proposed levies to the commissioner no later than October 10 of 
106.20 	each year. By January 7 of each year each district must notify the commissioner of the 
106.21 	final levies certified. The commissioner shall prescribe the form of these notifications and 
106.22 	may request any additional information necessary to compute certified levy amounts.

106.23 	Sec. 9. Minnesota Statutes 2006, section 275.065, subdivision 1, is amended to read:
106.24 		Subdivision 1.Proposed levy. (a) Notwithstanding any law or charter to the 
106.25 	contrary, on or before September 15, each taxing authority, other than a school district, 
106.26 	shall adopt a proposed budget and shall certify to the county auditor the proposed or, in 
106.27 	the case of a town, the final property tax levy for taxes payable in the following year.
106.28 	(b) On or before September 30, each school district that has not mutually agreed 
106.29 	with its home county to extend this date shall certify to the county auditor the proposed 
106.30 	property tax levy for taxes payable in the following year. Each school district that has 
106.31 	agreed with its home county to delay the certification of its proposed property tax levy 
106.32 	must certify its proposed property tax levy for the following year no later than October 
106.33 	7. The school district shall certify the proposed levy as:
107.1 	(1) a specific dollar amount by school district fund, broken down between 
107.2 	voter-approved and non-voter-approved levies and between referendum market value 
107.3 	and tax capacity levies; or
107.4 	(2) the maximum levy limitation certified by the commissioner of education 
107.5 	according to section   126C.48, subdivision 1. 
107.6 	(c) If the board of estimate and taxation or any similar board that establishes 
107.7 	maximum tax levies for taxing jurisdictions within a first class city certifies the maximum 
107.8 	property tax levies for funds under its jurisdiction by charter to the county auditor by 
107.9 	September 15, the city shall be deemed to have certified its levies for those taxing 
107.10 	jurisdictions.
107.11 	(d) For purposes of this section, "taxing authority" includes all home rule and 
107.12 	statutory cities, towns, counties, school districts, and special taxing districts as defined 
107.13 	in section   275.066. Intermediate school districts that levy a tax under chapter 124 or 
107.14 	136D, joint powers boards established under sections   123A.44 to   123A.446, and Common 
107.15 	School Districts No. 323, Franconia, and No. 815, Prinsburg, are also special taxing 
107.16 	districts for purposes of this section. 

107.17 	Sec. 10. Minnesota Statutes 2006, section 275.065, subdivision 1a, is amended to read:
107.18 		Subd. 1a.Overlapping jurisdictions. In the case of a taxing authority lying in 
107.19 	two or more counties, the home county auditor shall certify the proposed levy and the 
107.20 	proposed local tax rate to the other county auditor by October 5, unless the home county 
107.21 	has agreed to delay the certification of its proposed property tax levy, in which case the 
107.22 	home county auditor shall certify the proposed levy and the proposed local tax rate to the 
107.23 	other county auditor by October 10. The home county auditor must estimate the levy or 
107.24 	rate in preparing the notices required in subdivision 3, if the other county has not certified 
107.25 	the appropriate information. If requested by the home county auditor, the other county 
107.26 	auditor must furnish an estimate to the home county auditor.

107.27 	Sec. 11. PLAINVIEW-ELGIN-MILLVILLE; CONSOLIDATED DISTRICT 
107.28 	FUND BALANCE CALCULATIONS.
 107.29 		Subdivision 1.Fiscal year 2007 replacement aid. Independent School District 
107.30 	No. 2899, Plainview-Elgin-Millville, is eligible for replacement aid to offset its excess 
107.31 	fund balance penalty for fiscal year 2007.
107.32 		Subd. 2.Fiscal years 2008 and 2009. Upon receipt of appropriate documentation 
107.33 	from Independent School District No. 2899, Plainview-Elgin-Millville, the Department of 
107.34 	Education must adjust the district's three-year adjusted average fund balances required 
108.1 	under Minnesota Statutes, sections 124D.135, 124D.16 and 124D.20. The department 
108.2 	shall adjust the fiscal year 2006 account balances reported by former Independent School 
108.3 	Districts Nos. 806, Elgin-Millville, and 810, Plainview, to reflect any permanent account 
108.4 	of fund transfers made under Minnesota Statutes, section 123B.79.

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

108.6 	Sec. 12. FUND TRANSFER.
 108.7 		Subdivision 1.Brainerd. Notwithstanding Minnesota Statutes, section 123B.79 
108.8 	or 123B.80, on June 30, 2007, Independent School District No. 181, Brainerd, may 
108.9 	permanently transfer up to $750,000 from its reserved for operating capital account to its 
108.10 	undesignated general fund balance without making a levy reduction.
108.11 		Subd. 2.Campbell-Tintah. Notwithstanding Minnesota Statutes, section 123B.79 
108.12 	or 123B.80, on June 30, 2007, Independent School District No. 852, Campbell-Tintah, 
108.13 	may permanently transfer up to $100,000 from its reserved for operating capital account 
108.14 	to its undesignated general fund without making a levy reduction.
108.15 		Subd. 3.Comfrey. Notwithstanding Minnesota Statutes, section 123B.79 
108.16 	or 123B.80, on June 30, 2007, Independent School District No. 81, Comfrey, may 
108.17 	permanently transfer up to $250,000 from its reserved for operating capital account to its 
108.18 	undesignated general fund balance without making a levy reduction.
108.19 		Subd. 4.Floodwood. Notwithstanding Minnesota Statutes, section 123B.79 
108.20 	or 123B.80, on June 30, 2007, Independent School District No. 698, Floodwood, 
108.21 	may transfer up to $227,000 from its reserved for disabled accessibility account to its 
108.22 	undesignated general fund balance without making a levy reduction.
108.23 		Subd. 5.International Falls. Notwithstanding Minnesota Statutes, section 123B.79 
108.24 	or 123B.80, on June 30, 2007, Independent School District No. 361, International Falls, 
108.25 	may permanently transfer up to $100,000 from its reserved for operating capital account 
108.26 	to its undesignated general fund balance without making a levy reduction.
108.27 		Subd. 6.Jackson County Central. Notwithstanding Minnesota Statutes, section 
108.28 	123B.79 or 123B.80, on June 30, 2007, Independent School District No. 2895, Jackson 
108.29 	County Central, may permanently transfer up to $300,000 from its reserved for operating 
108.30 	capital account to its undesignated general fund balance without making a levy reduction.
108.31 		Subd. 7.Red Rock Central. Notwithstanding Minnesota Statutes, section 123B.79 
108.32 	or 123B.80, on June 30, 2007, Independent School District No. 2884, Red Rock Central, 
108.33 	may permanently transfer up to $81,000 from its reserved for disabled accessibility 
108.34 	account to its undesignated general fund balance without making a levy reduction. 
109.1 		Subd. 8.Windom. Notwithstanding Minnesota Statutes, section 123B.79 or 
109.2 	123B.80, on June 30, 2007, Independent School District No. 177, Windom, may transfer 
109.3 	up to $50,000 from its reserved for operating capital account to its undesignated general 
109.4 	fund balance without making a levy reduction.

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

109.6 	Sec. 13. APPROPRIATIONS.
 109.7 		Subdivision 1.Department of Education. The sums indicated in this section are 
109.8 	appropriated from the general fund to the Department of Education for the fiscal years 
109.9 	designated.
109.10 		Subd. 2.School lunch. For school lunch aid according to Minnesota Statutes, 
109.11 	section 124D.111, and Code of Federal Regulations, title 7, section 210.17:

109.12		$
	12,022,000
	.....
	2008
	
109.13		$
	12,166,000
	.....
	2009
	
109.14 		Subd. 3.Traditional school breakfast; kindergarten milk. For traditional school 
109.15 	breakfast aid and kindergarten milk under Minnesota Statutes, sections 124D.1158 and 
109.16 	124D.118:

109.17		$
	5,460,000
	.....
	2008
	
109.18		$
	5,695,000
	.....
	2009
	
109.19 		Subd. 4.Summer food service replacement aid. For summer food service 
109.20 	replacement aid under Minnesota Statutes, section 124D.119:

109.21		$
	150,000
	.....
	2008
	
109.22		$
	150,000
	.....
	2009
	
109.23 		Subd. 5.Plainview-Elgin-Millville fund balance replacement aid.
 109.24 	For fund balance replacement aid for Independent School District No. 2899, 
109.25 	Plainview-Elgin-Millville:

109.26		$
	17,000
	.....
	2008
	
109.27 	This is a onetime appropriation.

109.28 	Sec. 14.  REPEALER.
 109.29 	Minnesota Statutes 2006, section 123B.749, is repealed.

110.1 	ARTICLE 6
110.2 	LIBRARIES

110.3 	Section 1. Minnesota Statutes 2006, section 134.31, is amended by adding a 
110.4 	subdivision to read:
110.5 		Subd. 4a.Services to the blind and physically handicapped. The Minnesota 
110.6 	Department of Education shall provide specialized services to the blind and physically 
110.7 	handicapped through the Minnesota Library for the Blind and Physically Handicapped 
110.8 	under a cooperative plan with the National Library Services for the Blind and Physically 
110.9 	Handicapped of the Library of Congress.

110.10 	Sec. 2. Minnesota Statutes 2006, section 134.34, subdivision 4, is amended to read:
110.11 		Subd. 4.Limitation. A regional library basic system support grant shall not be 
110.12 	made to a regional public library system for a participating city or county which decreases 
110.13 	the dollar amount provided for support for operating purposes of public library service 
110.14 	below the amount provided by it for the second preceding year. For purposes of this 
110.15 	subdivision and subdivision 1, any funds provided under section 473.757, subdivision 2, 
110.16 	for extending library hours of operation shall not be considered amounts provided by a city 
110.17 	or county for support for operating purposes of public library service. This subdivision 
110.18 	shall not apply to participating cities or counties where the adjusted net tax capacity of 
110.19 	that city or county has decreased, if the dollar amount of the reduction in support is not 
110.20 	greater than the dollar amount by which support would be decreased if the reduction in 
110.21 	support were made in direct proportion to the decrease in adjusted net tax capacity.

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

110.23 	Sec. 3. DEPARTMENT OF EDUCATION; LIBRARY APPROPRIATIONS.
 110.24 		Subdivision 1.Department of Education. The sums indicated in this section are 
110.25 	appropriated from the general fund to the Department of Education for the fiscal years 
110.26 	designated.
110.27 		Subd. 2.Basic system support. For basic system support grants under Minnesota 
110.28 	Statutes, section 134.355:

110.29		$
	9,182,000
	.....
	2008
	
110.30		$
	13,138,000
	.....
	2009
	
110.31 	The 2008 appropriation includes $857,000 for 2007 and $8,325,000 for 2008.
110.32 	The 2009 appropriation includes $925,000 for 2008 and $12,213,000 for 2009.
111.1 		Subd. 3.Multicounty, multitype library systems. For grants under Minnesota 
111.2 	Statutes, sections 134.353 and 134.354, to multicounty, multitype library systems:

111.3		$
	1,260,000
	.....
	2008
	
111.4		$
	1,300,000
	.....
	2009
	
111.5 	The 2008 appropriation includes $90,000 for 2007 and $1,170,000 for 2008.
111.6 	The 2009 appropriation includes $130,000 for 2008 and $1,170,000 for 2009.
111.7 		Subd. 4.Electronic library for Minnesota. For statewide licenses to online 
111.8 	databases selected in cooperation with the Minnesota Office of Higher Education for 
111.9 	school media centers, public libraries, state government agency libraries, and public 
111.10 	or private college or university libraries:

111.11		$
	900,000
	.....
	2008
	
111.12		$
	900,000
	.....
	2009
	
111.13 	Any balance in the first year does not cancel but is available in the second year.
111.14 		Subd. 5.Regional library telecommunications aid. For regional library 
111.15 	telecommunications aid under Minnesota Statutes, section 134.355:

111.16		$
	2,190,000
	.....
	2008
	
111.17		$
	2,300,000
	.....
	2009
	
111.18 	The 2008 appropriation includes $120,000 for 2007 and $2,070,000 for 2008.
111.19 	The 2009 appropriation includes $230,000 for 2008 and $2,070,000 for 2009.
111.20 		Subd. 6.Hennepin County and Minneapolis library systems merger. For costs 
111.21 	attributable to the library system merger:

111.22		$
	4,500,000
	.....
	2008
	
111.23 	If the Hennepin County and Minneapolis city library systems do not merge, any 
111.24 	unexpended balance remaining in this appropriation must be allocated to increase the 
111.25 	fiscal year 2008 entitlement for Basic System Support Grants under Minnesota Statutes, 
111.26 	section 134.355.
111.27 	This appropriation is available through June 30, 2009.
111.28 	This is a onetime appropriation.

111.29 	ARTICLE 7
111.30 	STATE AGENCIES

111.31 	Section 1. [127A.065] CROSS-SUBSIDY REPORT.
111.32 	By January 10, the commissioner of education shall submit an annual report to the 
111.33 	legislative committees having jurisdiction over kindergarten through grade 12 education 
112.1 	on the amount each district is cross-subsidizing special education costs with general 
112.2 	education revenue.

112.3 	Sec. 2. Minnesota Statutes 2006, section 517.08, subdivision 1c, is amended to read:
112.4 		Subd. 1c.Disposition of license fee. (a) Of the marriage license fee collected 
112.5 	pursuant to subdivision 1b, paragraph (a), $15 must be retained by the county. The local 
112.6 	registrar must pay $85 to the commissioner of finance to be deposited as follows:
112.7 	(1) $50 in the general fund;
112.8 	(2) $3 in the state government special revenue fund to be appropriated to the 
112.9 	commissioner of education public safety for parenting time centers under section 119A.37;
112.10 	(3) $2 in the special revenue fund to be appropriated to the commissioner of health 
112.11 	for developing and implementing the MN ENABL program under section 145.9255;
112.12 	(4) $25 in the special revenue fund is appropriated to the commissioner of 
112.13 	employment and economic development for the displaced homemaker program under 
112.14 	section 116L.96; and
112.15 	(5) $5 in the special revenue fund is appropriated to the commissioner of human 
112.16 	services for the Minnesota Healthy Marriage and Responsible Fatherhood Initiative under 
112.17 	section 256.742.
112.18 	(b) Of the $30 fee under subdivision 1b, paragraph (b), $15 must be retained by the 
112.19 	county. The local registrar must pay $15 to the commissioner of finance to be deposited 
112.20 	as follows:
112.21 	(1) $5 as provided in paragraph (a), clauses (2) and (3); and
112.22 	(2) $10 in the special revenue fund is appropriated to the commissioner of 
112.23 	employment and economic development for the displaced homemaker program under 
112.24 	section 116L.96.
112.25 	(c) The increase in the marriage license fee under paragraph (a) provided for in Laws 
112.26 	2004, chapter 273, and disbursement of the increase in that fee to the special fund for the 
112.27 	Minnesota Healthy Marriage and Responsible Fatherhood Initiative under paragraph (a), 
112.28 	clause (5), is contingent upon the receipt of federal funding under United States Code, title 
112.29 	42, section 1315, for purposes of the initiative.

112.30 	Sec. 3. RULEMAKING AUTHORITY; CAREER AND TECHNICAL 
112.31 	EDUCATION.
 112.32 	The commissioner of education shall adopt rules under Minnesota Statutes, chapter 
112.33 	14, for the administration of career and technical education programs for grades 7 through 
112.34 	12 under Minnesota Statutes, sections 124D.452, 124D.4531, and 124D.454, to ensure 
113.1 	that the career and technical levy and programs can be administered to serve students 
113.2 	under the current state and local organizational structures.

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

113.4 	Sec. 4. APPROPRIATIONS; DEPARTMENT OF EDUCATION.
 113.5 		Subdivision 1.Department of Education. Unless otherwise indicated, the sums 
113.6 	indicated in this section are appropriated from the general fund to the Department of 
113.7 	Education for the fiscal years designated.
113.8 		Subd. 2.Department. (a) For the Department of Education:

113.9		$
	22,169,000
	.....
	2008
	
113.10		$
	22,653,000
	.....
	2009
	
113.11 	Any balance in the first year does not cancel but is available in the second year.
113.12 	(b) $7,000 in fiscal year 2008 is for GRAD test rulemaking.
113.13 	(c) $7,000 in fiscal year 2008 is for rulemaking under section 3.
113.14 	(d) $40,000 each year is for an early hearing loss intervention coordinator under 
113.15 	Minnesota Statutes, section 125A.63, subdivision 5. If the department expends federal 
113.16 	funds to employ a hearing loss coordinator under Minnesota Statutes, section 125.63, 
113.17 	subdivision 5, then the appropriation under this paragraph is reallocated for purposes of 
113.18 	employing a world languages coordinator.
113.19 	(e) $260,000 each year is for the Minnesota Children's Museum.
113.20 	(f) $41,000 each year is for the Minnesota Academy of Science.
113.21 	(g) $619,000 in fiscal year 2008 and $632,000 in fiscal year 2009 are for the Board 
113.22 	of Teaching.
113.23 	(h) $163,000 in fiscal year 2008 and $171,000 in fiscal year 2009 are for the Board 
113.24 	of School Administrators.
113.25 	(i) $50,000 each year is for the Duluth Children's Museum.
113.26 	(j) The expenditures of federal grants and aids as shown in the biennial budget 
113.27 	document and its supplements are approved and appropriated and shall be spent as 
113.28 	indicated.
113.29 	(k) None of the amounts appropriated under this subdivision may be used for 
113.30 	Minnesota's Washington, D.C., office.

113.31 	Sec. 5. APPROPRIATIONS; MINNESOTA STATE ACADEMIES.
 113.32 	The sums indicated in this section are appropriated from the general fund to the 
113.33 	Minnesota State Academies for the Deaf and the Blind for the fiscal years designated:

114.1		$
	 11,788,000
	.....
	2008
	
114.2		$
	 11,915,000
	.....
	2009
	
114.3 	Any balance in the first year does not cancel but is available in the second year.

114.4 	Sec. 6. APPROPRIATIONS; PERPICH CENTER FOR ARTS EDUCATION.
 114.5 	The sums indicated in this section are appropriated from the general fund to the 
114.6 	Perpich Center for Arts Education for the fiscal years designated:

114.7		$
	 6,929,000
	.....
	2008
	
114.8		$
	7,090,000
	.....
	2009
	
114.9 	Any balance in the first year does not cancel but is available in the second year.

114.10 	Sec. 7. APPROPRIATIONS; DEPARTMENT OF PUBLIC SAFETY.
 114.11 	The sums indicated in this section are appropriated from the state government 
114.12 	special revenue fund to the Department of Public Safety for the fiscal years designated to 
114.13 	fund parenting time centers as described in Minnesota Statutes, section 119A.37:

114.14		$
	96,000
	.....
	2008
	
114.15		$
	96,000
	.....
	2009

114.16 	ARTICLE 8
114.17 	PUPIL TRANSPORTATION STANDARDS

114.18 	Section 1. Minnesota Statutes 2006, section 123B.88, subdivision 12, is amended to 
114.19 	read:
114.20 		Subd. 12.Early childhood family education participants. Districts may provide 
114.21 	bus transportation along regular school bus routes when space is available for participants 
114.22 	in early childhood family education programs and school readiness programs if these 
114.23 	services do not result in an increase in the district's expenditures for transportation. 
114.24 	The costs allocated to these services, as determined by generally accepted accounting 
114.25 	principles, shall be considered part of the authorized cost for regular transportation for 
114.26 	the purposes of section 123B.92. 

114.27 	EFFECTIVE DATE. This section is effective the day following final enactment 
114.28 	and applies for fiscal year 2007 and later.

114.29 	Sec. 2. Minnesota Statutes 2006, section 123B.90, subdivision 2, is amended to read:
115.1 		Subd. 2.Student training. (a) Each district must provide public school pupils 
115.2 	enrolled in kindergarten through grade 10 with age-appropriate school bus safety training, 
115.3 	as described in this section, of the following concepts:
115.4 	(1) transportation by school bus is a privilege and not a right;
115.5 	(2) district policies for student conduct and school bus safety;
115.6 	(3) appropriate conduct while on the school bus;
115.7 	(4) the danger zones surrounding a school bus;
115.8 	(5) procedures for safely boarding and leaving a school bus;
115.9 	(6) procedures for safe street or road crossing; and
115.10 	(7) school bus evacuation.
115.11 	(b) Each nonpublic school located within the district must provide all nonpublic 
115.12 	school pupils enrolled in kindergarten through grade 10 who are transported by school 
115.13 	bus at public expense and attend school within the district's boundaries with training as 
115.14 	required in paragraph (a).
115.15 	(c) Students enrolled in kindergarten through grade 6 who are transported by school 
115.16 	bus and are enrolled during the first or second week of school must receive the school bus 
115.17 	safety training competencies by the end of the third week of school. Students enrolled in 
115.18 	grades 7 through 10 who are transported by school bus and are enrolled during the first or 
115.19 	second week of school and have not previously received school bus safety training must 
115.20 	receive the training or receive bus safety instructional materials by the end of the sixth 
115.21 	week of school. Students taking driver's training instructional classes and other students in 
115.22 	grades 9 and 10 must receive training in the laws and proper procedures when operating a 
115.23 	motor vehicle in the vicinity of a school bus as required by section 169.446, subdivisions 2 
115.24 	and 3. Students enrolled in kindergarten through grade 10 who enroll in a school after the 
115.25 	second week of school and are transported by school bus and have not received training 
115.26 	in their previous school district shall undergo school bus safety training or receive bus 
115.27 	safety instructional materials within four weeks of the first day of attendance. Upon 
115.28 	request of the superintendent of schools, the school transportation safety director in each 
115.29 	district must certify to the superintendent of schools annually that all students transported 
115.30 	by school bus within the district have received the school bus safety training according to 
115.31 	this section. Upon request of the superintendent of the school district where the nonpublic 
115.32 	school is located, the principal or other chief administrator of each nonpublic school must 
115.33 	certify annually to the school transportation safety director of the district in which the 
115.34 	school is located that the school's students transported by school bus at public expense 
115.35 	have received training according to this section.
116.1 	(d) A district and a nonpublic school with students transported by school bus at 
116.2 	public expense may provide kindergarten pupils with bus safety training before the first 
116.3 	day of school.
116.4 	(e) A district and a nonpublic school with students transported by school bus at 
116.5 	public expense may also provide student safety education for bicycling and pedestrian 
116.6 	safety, for students enrolled in kindergarten through grade 5.
116.7 	(f) A district and a nonpublic school with students transported by school bus at 
116.8 	public expense must make reasonable accommodations for the school bus safety training 
116.9 	of pupils known to speak English as a second language and pupils with disabilities.
116.10 	(g) The district and a nonpublic school with students transported by school bus at 
116.11 	public expense must provide students enrolled in kindergarten through grade 3 school bus 
116.12 	safety training twice during the school year.
116.13 	(h) A district and a nonpublic school with students transported by school bus at public 
116.14 	expense must conduct a school bus evacuation drill at least once during the school year.

116.15 	EFFECTIVE DATE. This section is effective July 1, 2007.

116.16 	Sec. 3. Minnesota Statutes 2006, section 169.01, is amended by adding a subdivision 
116.17 	to read:
116.18 		Subd. 92.Cellular phone. "Cellular phone" means a cellular, analog, wireless, or 
116.19 	digital telephone capable of sending or receiving telephone or text messages without 
116.20 	an access line for service.

116.21 	Sec. 4. Minnesota Statutes 2006, section 169.443, is amended by adding a subdivision 
116.22 	to read:
116.23 		Subd. 9.Personal cellular phone call prohibition. A school bus driver may not 
116.24 	operate a school bus while communicating over, or otherwise operating, a cellular phone 
116.25 	for personal reasons, whether hand-held or hands free, when the vehicle is in motion.

116.26 	EFFECTIVE DATE. This section is effective July 1, 2007.

116.27 	Sec. 5. Minnesota Statutes 2006, section 169.447, subdivision 2, is amended to read:
116.28 		Subd. 2.Driver seat belt. New School buses and Head Start buses manufactured 
116.29 	after December 31, 1994, must be equipped with driver seat belts and seat belt assemblies 
116.30 	of the type described in section 169.685, subdivision 3. School bus drivers and Head 
116.31 	Start bus drivers must use these seat belts. 

116.32 	EFFECTIVE DATE. This section is effective July 1, 2007.

117.1 	Sec. 6. Minnesota Statutes 2006, section 169.4501, subdivision 1, is amended to read:
117.2 		Subdivision 1.National standards adopted. Except as provided in sections 
117.3 	169.4502 and 169.4503, the construction, design, equipment, and color of types A, B, C, 
117.4 	and D and multifunctional school activity bus school buses used for the transportation 
117.5 	of school children shall meet the requirements of the "bus chassis standards" and "bus 
117.6 	body standards" in the 2000 2005 edition of the "National School Transportation 
117.7 	Specifications and Procedures" adopted by the National Conference Congress on School 
117.8 	Transportation. Except as provided in section 169.4504, the construction, design, and 
117.9 	equipment of types A, B, C, and D and multifunctional school activity bus school buses 
117.10 	used for the transportation of students with disabilities also shall meet the requirements 
117.11 	of the "specially equipped school bus standards" in the 2000 2005 National School 
117.12 	Transportation Specifications and Procedures. The "bus chassis standards," "bus body 
117.13 	standards," and "specially equipped school bus standards" sections of the 2000 2005
117.14 	edition of the "National School Transportation Specifications and Procedures" are 
117.15 	incorporated by reference in this chapter. 

117.16 	EFFECTIVE DATE. This section is effective January 1, 2008.

117.17 	Sec. 7. Minnesota Statutes 2006, section 169.4501, subdivision 2, is amended to read:
117.18 		Subd. 2.Applicability. (a) The standards adopted in this section and sections 
117.19 	169.4502 and 169.4503, govern the construction, design, equipment, and color of school 
117.20 	buses used for the transportation of school children, when owned or leased and operated 
117.21 	by a school or privately owned or leased and operated under a contract with a school. 
117.22 	Each school, its officers and employees, and each person employed under the contract is 
117.23 	subject to these standards. 
117.24 	(b) The standards apply to school buses manufactured after October 31, 2004
117.25 	December 31, 2007. Buses complying with the standards when manufactured need not 
117.26 	comply with standards established later except as specifically provided for by law.
117.27 	(c) A school bus manufactured on or before October 31, 2004 December 31, 
117.28 	2007, must conform to the Minnesota standards in effect on the date the vehicle was 
117.29 	manufactured except as specifically provided for in law.
117.30 	(d) A new bus body may be remounted on a used chassis provided that the remounted 
117.31 	vehicle meets state and federal standards for new buses which are current at the time of the 
117.32 	remounting. Permission must be obtained from the commissioner of public safety before 
117.33 	the remounting is done. A used bus body may not be remounted on a new or used chassis.

117.34 	EFFECTIVE DATE. This section is effective January 1, 2008.

118.1 	Sec. 8. Minnesota Statutes 2006, section 169.4502, subdivision 5, is amended to read:
118.2 		Subd. 5.Electrical system; battery. (a) The storage battery, as established by the 
118.3 	manufacturer's rating, must be of sufficient capacity to care for starting, lighting, signal 
118.4 	devices, heating, and other electrical equipment. In a bus with a gas-powered chassis, the 
118.5 	battery or batteries must provide a minimum of 800 cold cranking amperes. In a bus 
118.6 	with a diesel-powered chassis, the battery or batteries must provide a minimum of 1050 
118.7 	cold cranking amperes.
118.8 	(b) In a type B bus with a gross vehicle weight rating of 15,000 pounds or more, and 
118.9 	type C and D buses, the battery shall be temporarily mounted on the chassis frame. The 
118.10 	final location of the battery and the appropriate cable lengths in these buses must comply 
118.11 	with the SBMI design objectives booklet.
118.12 	(c) All batteries shall be mounted according to chassis manufacturers' 
118.13 	recommendations.
118.14 	(d) In a type C bus, other than are powered by diesel fuel, a battery providing at least 
118.15 	550 cold cranking amperes may be installed in the engine compartment only if used in 
118.16 	combination with a generator or alternator of at least 120 130 amperes.
118.17 	(e) A bus with a gross vehicle weight rating of 15,000 pounds or less may be 
118.18 	equipped with a battery to provide a minimum of 550 cold cranking amperes only if used 
118.19 	in combination with an alternator of at least 80 130 amperes. This paragraph does not 
118.20 	apply to those buses with wheelchair lifts or diesel engines.

118.21 	EFFECTIVE DATE. This section is effective January 1, 2008.

118.22 	Sec. 9. Minnesota Statutes 2006, section 169.4503, subdivision 13, is amended to read:
118.23 		Subd. 13.Identification. (a) Each bus shall, in the beltline, identify the school 
118.24 	district serviced, or company name, or owner of the bus. Numbers necessary for 
118.25 	identification must appear on the sides and rear of the bus. Symbols or letters may 
118.26 	be used on the outside of the bus near the entrance door for student identification. A 
118.27 	manufacturer's nameplate or logo may be placed on the bus.
118.28 	(b) Effective December 31, 1994, all type A, B, C, and D buses sold must display 
118.29 	lettering "Unlawful to pass when red lights are flashing" on the rear of the bus. The 
118.30 	lettering shall be in two-inch black letters on school bus yellow background. This message 
118.31 	shall be displayed directly below the upper window of the rear door. On rear engine buses, 
118.32 	it shall be centered at approximately the same location. Only signs and lettering approved 
118.33 	or required by state law may be displayed.

118.34 	EFFECTIVE DATE. This section is effective January 1, 2008.

119.1 	Sec. 10. Minnesota Statutes 2006, section 169.4503, subdivision 20, is amended to 
119.2 	read:
119.3 		Subd. 20.Seat and crash barriers. (a) All restraining barriers and passenger seats 
119.4 	shall be covered with a material that has fire retardant or fire block characteristics.
119.5 	(b) All seats must have a minimum cushion depth of 15 inches and a seat back 
119.6 	height of at least 20 inches above the seating reference point.

119.7 	EFFECTIVE DATE. This section is effective January 1, 2008.

119.8 	Sec. 11. Minnesota Statutes 2006, section 171.02, subdivision 2, is amended to read:
119.9 		Subd. 2.Driver's license classifications, endorsements, exemptions. (a) Drivers' 
119.10 	licenses are classified according to the types of vehicles that may be driven by the holder 
119.11 	of each type or class of license. The commissioner may, as appropriate, subdivide the 
119.12 	classes listed in this subdivision and issue licenses classified accordingly.
119.13 	(b) Except as provided in paragraph (c), clauses (1) and (2), and subdivision 2a, no 
119.14 	class of license is valid to operate a motorcycle, school bus, tank vehicle, double-trailer 
119.15 	or triple-trailer combination, vehicle transporting hazardous materials, or bus, unless 
119.16 	so endorsed. There are four general classes of licenses as described in paragraphs (c) 
119.17 	through (f).
119.18 	(c) Class D drivers' licenses are valid for:
119.19 	(1) operating all farm trucks if the farm truck is:
119.20 	(i) controlled and operated by a farmer, including operation by an immediate family 
119.21 	member or an employee of the farmer;
119.22 	(ii) used to transport agricultural products, farm machinery, or farm supplies, 
119.23 	including hazardous materials, to or from a farm;
119.24 	(iii) not used in the operations of a common or contract motor carrier as governed by 
119.25 	Code of Federal Regulations, title 49, part 365; and
119.26 	(iv) used within 150 miles of the farm;
119.27 	(2) notwithstanding paragraph (b), operating an authorized emergency vehicle, 
119.28 	as defined in section 169.01, subdivision 5, whether or not in excess of 26,000 pounds 
119.29 	gross vehicle weight;
119.30 	(3) operating a recreational vehicle as defined in section 168.011, subdivision 25, 
119.31 	that is operated for personal use;
119.32 	(4) operating all single-unit vehicles except vehicles with a gross vehicle weight of 
119.33 	more than 26,000 pounds, vehicles designed to carry more than 15 passengers including 
119.34 	the driver, and vehicles that carry hazardous materials;
120.1 	(5) notwithstanding paragraph (d), operating a type A school bus or a multifunctional 
120.2 	school activity bus without a school bus endorsement if:
120.3 	(i) the bus has a gross vehicle weight of 10,000 pounds or less;
120.4 	(ii) the bus is designed to transport 15 or fewer passengers, including the driver; and
120.5 	(iii) the requirements of subdivision 2a are satisfied, as determined by the 
120.6 	commissioner;
120.7 	(6) operating any vehicle or combination of vehicles when operated by a licensed 
120.8 	peace officer while on duty; and
120.9 	(7) towing vehicles if:
120.10 	(i) the towed vehicles have a gross vehicle weight of 10,000 pounds or less; or
120.11 	(ii) the towed vehicles have a gross vehicle weight of more than 10,000 pounds and 
120.12 	the combination of vehicles has a gross vehicle weight of 26,000 pounds or less.
120.13 	(d) Class C drivers' licenses are valid for:
120.14 	(1) operating class D motor vehicles;
120.15 	(2) with a hazardous materials endorsement, transporting hazardous materials 
120.16 	in class D vehicles; and
120.17 	(3) with a school bus endorsement, operating school buses designed to transport 15 
120.18 	or fewer passengers, including the driver.
120.19 	(e) Class B drivers' licenses are valid for:
120.20 	(1) operating all class C motor vehicles, class D motor vehicles, and all other 
120.21 	single-unit motor vehicles including, with a passenger endorsement, buses; and
120.22 	(2) towing only vehicles with a gross vehicle weight of 10,000 pounds or less.
120.23 	(f) Class A drivers' licenses are valid for operating any vehicle or combination of 
120.24 	vehicles.

120.25 	EFFECTIVE DATE. This section is effective January 1, 2008.

120.26 	Sec. 12. Minnesota Statutes 2006, section 171.02, subdivision 2a, is amended to read:
120.27 		Subd. 2a.Exception for certain school bus drivers. Notwithstanding subdivision 
120.28 	2, paragraph (c), the holder of a class D driver's license, without a school bus endorsement, 
120.29 	may operate a type A school bus described in subdivision 2, paragraph (b), under the 
120.30 	following conditions:
120.31 	(a) The operator is an employee of the entity that owns, leases, or contracts for the 
120.32 	school bus and is not solely hired to provide transportation services under this subdivision.
120.33 	(b) The operator drives the school bus only from points of origin to points of 
120.34 	destination, not including home-to-school trips to pick up or drop off students.
121.1 	(c) The operator is prohibited from using the eight-light system. Violation of this 
121.2 	paragraph is a misdemeanor.
121.3 	(d) The operator's employer has adopted and implemented a policy that provides for 
121.4 	annual training and certification of the operator in:
121.5 	(1) safe operation of the type of school bus the operator will be driving;
121.6 	(2) understanding student behavior, including issues relating to students with 
121.7 	disabilities;
121.8 	(3) encouraging orderly conduct of students on the bus and handling incidents of 
121.9 	misconduct appropriately;
121.10 	(4) knowing and understanding relevant laws, rules of the road, and local school 
121.11 	bus safety policies;
121.12 	(5) handling emergency situations; and
121.13 	(6) safe loading and unloading of students.
121.14 	(e) A background check or background investigation of the operator has been 
121.15 	conducted that meets the requirements under section 122A.18, subdivision 8, or 123B.03
121.16 	for teachers; section 144.057 or chapter 245C for day care employees; or section 171.321, 
121.17 	subdivision 3, for all other persons operating a type A school bus under this subdivision.
121.18 	(f) Operators shall submit to a physical examination as required by section 171.321, 
121.19 	subdivision 2.
121.20 	(g) The operator's driver's license is verified annually by the entity that owns, leases, 
121.21 	or contracts for the school bus.
121.22 	(h) A person who sustains a conviction, as defined under section 609.02, of violating 
121.23 	section 169A.25, 169A.26, 169A.27, 169A.31, 169A.51, or 169A.52, or a similar statute 
121.24 	or ordinance of another state is precluded from operating a school bus for five years 
121.25 	from the date of conviction.
121.26 	(i) A person who has ever been convicted of a disqualifying offense as defined in 
121.27 	section 171.3215, subdivision 1, paragraph (c), may not operate a school bus under this 
121.28 	subdivision.
121.29 	(j) A person who sustains a conviction, as defined under section 609.02, of a fourth 
121.30 	moving offense in violation of chapter 169 is precluded from operating a school bus for 
121.31 	one year from the date of the last conviction.
121.32 	(k) Students riding the school bus must have training required under section 
121.33 	123B.90, subdivision 2.
121.34 	(l) An operator must be trained in the proper use of child safety restraints as set 
121.35 	forth in the National Highway Traffic Safety Administration's "Guideline for the Safe 
122.1 	Transportation of Pre-school Age Children in School Buses.," if child safety restraints are 
122.2 	used by the passengers.
122.3 	(m) Annual certification of the requirements listed in this subdivision must be 
122.4 	maintained under separate file at the business location for each operator licensed under 
122.5 	this subdivision and subdivision 2, paragraph (b), clause (5). The business manager, 
122.6 	school board, governing body of a nonpublic school, or any other entity that owns, 
122.7 	leases, or contracts for the school bus operating under this subdivision is responsible 
122.8 	for maintaining these files for inspection.
122.9 	(n) The school bus must bear a current certificate of inspection issued under section 
122.10 	169.451.
122.11 	(o) The word "School" on the front and rear of the bus must be covered by a sign 
122.12 	that reads "Activities" when the bus is being operated under authority of this subdivision.

122.13 	EFFECTIVE DATE. This section is effective January 1, 2008.

122.14 	Sec. 13. Minnesota Statutes 2006, section 171.321, subdivision 4, is amended to read:
122.15 		Subd. 4.Training. (a) No person shall drive a class A, B, C, or D school bus when 
122.16 	transporting school children to or from school or upon a school-related trip or activity 
122.17 	without having demonstrated sufficient skills and knowledge to transport students in 
122.18 	a safe and legal manner.
122.19 	(b) A bus driver must have training or experience that allows the driver to meet at 
122.20 	least the following competencies:
122.21 	(1) safely operate the type of school bus the driver will be driving;
122.22 	(2) understand student behavior, including issues relating to students with 
122.23 	disabilities;
122.24 	(3) encourage orderly conduct of students on the bus and handle incidents of 
122.25 	misconduct appropriately;
122.26 	(4) know and understand relevant laws, rules of the road, and local school bus 
122.27 	safety policies;
122.28 	(5) handle emergency situations; and
122.29 	(6) safely load and unload students.
122.30 	(c) The commissioner of public safety shall develop a comprehensive model 
122.31 	school bus driver training program and model assessments for school bus driver training 
122.32 	competencies, which are not subject to chapter 14. A school district, nonpublic school, or 
122.33 	private contractor may use alternative assessments for bus driver training competencies 
122.34 	with the approval of the commissioner of public safety. A driver may receive at least eight 
122.35 	hours of school bus in-service training any year, as an alternative to being assessed for bus 
123.1 	driver competencies after the initial year of being assessed for bus driver competencies. 
123.2 	The employer shall keep the assessment or a record of the in-service training for the 
123.3 	current period available for inspection by representatives of the commissioner.

123.4 	EFFECTIVE DATE. This section is effective July 1, 2007.

123.5 	Sec. 14. RULES REVISED: COMMISSIONER OF PUBLIC SAFETY.
 123.6 		Subdivision 1.Rules revised under the good cause exemption. The commissioner 
123.7 	of public safety must amend and adopt the revisions to the rules listed  in subdivisions 2 to 
123.8 	8 under the good cause exemption to the rulemaking process under Minnesota Statutes, 
123.9 	section 14.388, subdivision 1, clause (3).
123.10 		Subd. 2.Minnesota Rules, part 7470.0500. The commissioner of public safety 
123.11 	must amend Minnesota Rules, part 7470.0500, by replacing two obsolete references to the 
123.12 	Department of Children, Families, and Learning, with a reference to the Department of 
123.13 	Public Safety and removing references to specifically repealed rules.
123.14 		Subd. 3.Minnesota Rules, part 7470.0700. The commissioner of public safety 
123.15 	must amend Minnesota Rules, part 7470.0700, as follows: 
123.16 	(1) for the points assigned to school bus equipment defects, strike the reference to 
123.17 	"orange" school buses and include a new school bus color exemption for multifunctional 
123.18 	school activity buses; and
123.19 	(2) replace the references to type I and type II school buses with type A, B, C, 
123.20 	or D school buses.
123.21 		Subd. 4.Minnesota Rules, part 7470.1000. The commissioner of public safety 
123.22 	must amend Minnesota Rules, part 7470.1000, to: 
123.23 	(1) include multifunctional school activity buses in the headnote; 
123.24 	(2) update subpart 1 to include multifunctional school activity buses as a type of 
123.25 	school bus listed after bus types A, B, C, and D; 
123.26 	(3) modify subpart 2 to clarify that the prohibition against loading or unloading while 
123.27 	adjacent to a turn lane applies only when it is a right-hand turn lane and does not prohibit a 
123.28 	bus from loading or unloading at the side of the road when there is a center turn lane; and 
123.29 	(3) expand the exception that allows service dogs on  school buses to include all 
123.30 	companion animals.
123.31 		Subd. 5.Minnesota Rules, part 7470.1100. The commissioner of public safety 
123.32 	must amend Minnesota Rules, part 7470.1100, to include multifunctional school activity 
123.33 	buses in the headnote and amend subpart 1 to include multifunctional school activity buses 
123.34 	as a type of school bus listed after bus types A, B, C, and D. The commissioner must also 
124.1 	amend item B of this part to require drivers to use prewarning flashing signals, flashing 
124.2 	red signals, and stop signals arms on buses that are equipped with those signals.
124.3 		Subd. 6.Minnesota Rules, part 7470.1400. The commissioner of public safety 
124.4 	must amend Minnesota Rules, part 7470.1400, to clarify that the operating rules in parts 
124.5 	7470.1000 to 7470.1500 apply to buses that are leased and rented as well as to school 
124.6 	buses that are owned by a school district, a nonpublic school, or a private operator under 
124.7 	contract to a school district or nonpublic school.
124.8 		Subd. 7.Minnesota Rules, part 7470.1500. The commissioner of public safety 
124.9 	must amend Minnesota Rules, part 7470.1500, to: 
124.10 	(1) clarify that the prohibition against loading or unloading while adjacent to a turn 
124.11 	lane applies only when it is a right-hand turn lane and does not prohibit a bus from loading 
124.12 	or unloading at the side of the road when there is a center turn lane; and 
124.13 	(2) delete item H because it is obsolete.
124.14 		Subd. 8.Minnesota Rules, part 7470.1700. The commissioner of public safety 
124.15 	must amend Minnesota Rules, part 7470.1700, subpart 2, to: 
124.16 	(1) clarify that the bus driver and the bus aide must have access to emergency health 
124.17 	care information for the students with disabilities transported on the bus; and 
124.18 	(2) add an item E that allows the health information to be maintained either in a hard 
124.19 	copy on the vehicle or immediately accessible through a two-way communications system.

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

124.21 	Sec. 15.  REPEALER.
 124.22 	Minnesota Statutes 2006, sections 169.4502, subdivision 15; and 169.4503, 
124.23 	subdivisions 17, 18, and 26, are repealed.

124.24 	EFFECTIVE DATE. This section is effective January 1, 2008.

124.25 	ARTICLE 9
124.26 	EARLY CHILDHOOD AND 
124.27 	ADULT PROGRAMS

124.28 	Section 1. Minnesota Statutes 2006, section 119A.52, is amended to read:
124.29 	119A.52 DISTRIBUTION OF APPROPRIATION.
124.30 	(a) The commissioner of education must distribute money appropriated for that 
124.31 	purpose to federally designated Head Start programs to expand services and to serve 
124.32 	additional low-income children. Migrant and Indian reservation programs must be initially 
124.33 	allocated money based on the programs' share of federal funds. The remaining money 
125.1 	must be initially allocated to the remaining local agencies based equally on the agencies' 
125.2 	share of federal funds and on the proportion of eligible children in the agencies' service 
125.3 	area who are not currently being served. A Head Start grantee program must be funded 
125.4 	at a per child rate equal to its contracted, federally funded base level at the start of the 
125.5 	fiscal year. In allocating funds under this paragraph, the commissioner of education 
125.6 	must assure that each Head Start program in existence in 1993 is allocated no less 
125.7 	funding in any fiscal year than was allocated to that program in fiscal year 1993. Before 
125.8 	paying money to the programs, the commissioner must notify each program of its initial 
125.9 	allocation, how the money must be used, and the number of low-income children to be 
125.10 	served with the allocation based upon the federally funded per child rate. Each program 
125.11 	must present a plan under section 119A.535. For any grantee program that cannot utilize 
125.12 	its full allocation at the beginning of the fiscal year, the commissioner must reduce the 
125.13 	allocation proportionately. Money available after the initial allocations are reduced must 
125.14 	be redistributed to eligible grantees programs.
125.15 	(b) The commissioner must develop procedures to make payments to programs 
125.16 	based upon the number of children reported to be enrolled during the required time 
125.17 	period of program operations. Enrollment is defined by federal Head Start regulations. 
125.18 	The procedures must include a reporting schedule, corrective action plan requirements, 
125.19 	and financial consequences to be imposed on programs that do not meet full enrollment 
125.20 	after the period of corrective action. Programs reporting chronic underenrollment, as 
125.21 	defined by the commissioner, will have their subsequent program year allocation reduced 
125.22 	proportionately. Funds made available by prorating payments and allocations to programs 
125.23 	with reported underenrollment will be made available to the extent funds exist to fully 
125.24 	enrolled Head Start programs through a form and manner prescribed by the department.

125.25 	Sec. 2. Minnesota Statutes 2006, section 119A.535, is amended to read:
125.26 	119A.535 APPLICATION REQUIREMENTS.
125.27 	Eligible Head Start organizations must submit a plan to the department for approval 
125.28 	on a form and in the manner prescribed by the commissioner. The plan must include:
125.29 	(1) the estimated number of low-income children and families the program will be 
125.30 	able to serve;
125.31 	(2) a description of the program design and service delivery area which meets the 
125.32 	needs of and encourages access by low-income working families;
125.33 	(3) a program design that ensures fair and equitable access to Head Start services for 
125.34 	all populations and parts of the service area;
126.1 	(4) a plan for coordinating services to maximize assistance for child care costs 
126.2 	available to families under chapter 119B providing Head Start services in conjunction with 
126.3 	full-day child care programs to minimize child transitions, increase program intensity and 
126.4 	duration, and improve child and family outcomes as required in section 119A.5411; and
126.5 	(5) identification of regular Head Start, early Head Start, full-day services identified 
126.6 	in section 119A.5411, and innovative services based upon demonstrated needs to be 
126.7 	provided.

126.8 	Sec. 3. [119A.5411] FULL-DAY REQUIREMENTS.
126.9 	The following phase-in of full-day services in Head Start programs or licensed child 
126.10 	care as defined in chapter 245A is required: 
126.11 	(1) by fiscal year 2009, a minimum of 25 percent of the total state-funded enrollment 
126.12 	throughout  the state must be provided in full-day services;
126.13 	 (2) by fiscal year 2011, a minimum of 40 percent of the total state-funded enrollment 
126.14 	throughout the state must be provided in full-day services; and
126.15 	(3) by fiscal year 2013, a minimum of 50 percent of the total state-funded enrollment 
126.16 	throughout the state must be provided in full-day services.
126.17 	Head Start programs may provide full-day services as part of their own program 
126.18 	model or through agreements with licensed full-day child care programs. If licensed child 
126.19 	care providers do not exist in a geographic area, choose not to participate, cannot meet 
126.20 	the federal Head Start performance standards after sufficient opportunity, or a Head Start 
126.21 	program is unable to establish the full-day services as a part of their own program model, 
126.22 	the Head Start program may request exemption from the commissioner.

126.23 	Sec. 4. Minnesota Statutes 2006, section 121A.17, subdivision 5, is amended to read:
126.24 		Subd. 5.Developmental screening program information. The board must inform 
126.25 	each resident family with a child eligible to participate in the developmental screening 
126.26 	program about the availability of the program and the state's requirement that a child 
126.27 	receive a developmental screening or provide health records indicating that the child 
126.28 	received a comparable developmental screening from a public or private health care 
126.29 	organization or individual health care provider not later than 30 days after the first 
126.30 	day of attending kindergarten in a public school. A school district must inform all 
126.31 	resident families with eligible children under age seven that their children may receive 
126.32 	a developmental screening conducted either by the school district or by a public or 
126.33 	private health care organization or individual health care provider and that the screening 
126.34 	is not required if a statement signed by the child's parent or guardian is submitted to the 
127.1 	administrator or other person having general control and supervision of the school that 
127.2 	the child has not been screened.

127.3 	Sec. 5. Minnesota Statutes 2006, section 124D.13, subdivision 1, is amended to read:
127.4 		Subdivision 1.Establishment; purpose. A district that provides a community 
127.5 	education program under sections 124D.18 and 124D.19 may establish an early childhood 
127.6 	family education program. Two or more districts, each of which provides a community 
127.7 	education program, may cooperate to jointly provide an early childhood family education 
127.8 	program. The purpose of the early childhood family education program is to provide 
127.9 	parenting education to support children's learning and development.

127.10 	Sec. 6. Minnesota Statutes 2006, section 124D.13, subdivision 2, is amended to read:
127.11 		Subd. 2.Program characteristics requirements. (a) Early childhood family 
127.12 	education programs are programs for children in the period of life from birth to 
127.13 	kindergarten, for the parents and other relatives of these children, and for expectant 
127.14 	parents. To the extent that funds are insufficient to provide programs for all children, 
127.15 	early childhood family education programs should emphasize programming for a child 
127.16 	from birth to age three and encourage parents and other relatives to involve four- and 
127.17 	five-year-old children in school readiness programs, and other public and nonpublic early 
127.18 	learning programs. A district may not limit participation to school district residents. Early 
127.19 	childhood family education programs may include the following must provide:
127.20 	(1) programs to educate parents and other relatives about the physical, mental, and 
127.21 	emotional development of children and to enhance the skills of parents and other relatives 
127.22 	in providing for their children's learning and development;
127.23 	(2) programs to enhance the skills of parents and other relatives in providing for their 
127.24 	children's learning and development structured learning activities requiring interaction 
127.25 	between children and their parents or relatives;
127.26 	(3) structured learning experiences activities for children and parents and other 
127.27 	relatives that promote children's development and positive interaction with peers, which 
127.28 	are held while parents or relatives attend parent education classes;
127.29 	(4) activities designed to detect children's physical, mental, emotional, or behavioral 
127.30 	problems that may cause learning problems;
127.31 	(5) activities and materials designed to encourage self-esteem, skills, and behavior 
127.32 	that prevent sexual and other interpersonal violence;
127.33 	(6) educational materials which may be borrowed for home use;
127.34 	(7) (4) information on related community resources;
128.1 	(8) programs to prevent (5) information, materials, and activities that support the 
128.2 	safety of children, including prevention of child abuse and neglect; and
128.3 	(9) other programs or activities to improve the health, development, and school 
128.4 	readiness of children; or
128.5 	(10) activities designed to maximize development during infancy.
128.6 	(6) a community outreach plan to ensure participation by families who reflect the 
128.7 	racial, cultural, and economic diversity of the school district.
128.8 	The programs must include learning experiences for children, parents, and other 
128.9 	relatives that promote children's early literacy skills. The programsprogram must not 
128.10 	include activities for children that do not require substantial involvement of the children's 
128.11 	parents or other relatives. The programs program must be reviewed periodically to assure 
128.12 	the instruction and materials are not racially, culturally, or sexually biased. The programs 
128.13 	must encourage parents to be aware of practices that may affect equitable development of 
128.14 	children.
128.15 	(b) For the purposes of this section, "relative" or "relatives" means noncustodial 
128.16 	grandparents or other persons related to a child by blood, marriage, adoption, or foster 
128.17 	placement, excluding parents.

128.18 	Sec. 7. Minnesota Statutes 2006, section 124D.13, subdivision 11, is amended to read:
128.19 		Subd. 11.Teachers. A school board must employ necessary qualified teachers 
128.20 	licensed in early childhood or parent education for its early childhood family education 
128.21 	programs.

128.22 	Sec. 8. Minnesota Statutes 2006, section 124D.13, is amended by adding a subdivision 
128.23 	to read:
128.24 		Subd. 13.Plan and program data submission requirements. (a) An early 
128.25 	childhood family education program must submit a biennial plan addressing the 
128.26 	requirements of subdivision 2 for approval by the commissioner. The plan must also 
128.27 	describe how the program provides parenting education and ensures participation of 
128.28 	families representative of the school district. A school district must submit the plan for 
128.29 	approval by the commissioner in the form and manner prescribed by the commissioner. 
128.30 	One-half of districts, as determined by the commissioner, must first submit a biennial plan 
128.31 	by April 1, 2009, and the remaining districts must first submit a plan by April 1, 2010.
128.32 	(b) Districts receiving early childhood family education revenue under section 
128.33 	124D.135 must submit annual program data to the department by July 15 in the form and 
128.34 	manner prescribed by the commissioner.
129.1 	(c) Beginning with levies for fiscal year 2011, a school district must submit its annual 
129.2 	program data to the department before it may certify a levy under section 124D.135. 
129.3 	Districts selected by the commissioner to submit a biennial plan by April 1, 2009, must 
129.4 	also have an approved plan on file with the commissioner before certifying a levy under 
129.5 	section 124D.135 for fiscal year 2011. Beginning with levies for fiscal year 2012, all 
129.6 	districts must submit annual program data and have an approved biennial plan on file with 
129.7 	the commissioner before certifying a levy under section 124D.135.

129.8 	Sec. 9. Minnesota Statutes 2006, section 124D.135, subdivision 1, is amended to read:
129.9 		Subdivision 1.Revenue. The revenue for early childhood family education 
129.10 	programs for a school district equals  $112 for fiscal year 2007 and $120 for fiscal year 
129.11 	2008 and later, times the greater of:
129.12 	(1) 150; or
129.13 	(2) the number of people under five years of age residing in the district on October 1 
129.14 	of the previous school year.

129.15 	EFFECTIVE DATE. This section is effective for revenue for fiscal year 2008.

129.16 	Sec. 10. Minnesota Statutes 2006, section 124D.135, subdivision 3, is amended to read:
129.17 		Subd. 3.Early childhood family education levy. For fiscal year 2001 to obtain 
129.18 	early childhood family education revenue, a district may levy an amount equal to the tax 
129.19 	rate of .5282 percent times the adjusted tax capacity of the district for the year preceding 
129.20 	the year the levy is certified. Beginning with levies for fiscal year 2002,(a) By September 
129.21 	30 of each year, the commissioner shall establish a tax rate for early childhood family
129.22 	education revenue that raises $21,027,000 for fiscal year 2002 and $22,135,000 in each
129.23 	fiscal year 2003 and each subsequent year. If the amount of the early childhood family 
129.24 	education levy would exceed the early childhood family education revenue, the early 
129.25 	childhood family education levy must equal the early childhood family education revenue.
129.26 	Beginning with levies for fiscal year 2011, a district may not certify an early childhood 
129.27 	family education levy unless it has met the annual program data reporting and biennial 
129.28 	plan requirements under section 124D.13, subdivision 13.
129.29 	(b) Notwithstanding paragraph (a), for fiscal year 2009 only, the commissioner shall 
129.30 	establish a tax rate for early education revenue that raises $13,565,000.

129.31 	Sec. 11. Minnesota Statutes 2006, section 124D.135, subdivision 5, is amended to read:
129.32 		Subd. 5.Use of revenue restricted. (a) Early childhood family education revenue 
129.33 	may be used only for early childhood family education programs.
130.1 	(b) Not more than five percent of early childhood family education revenue, as 
130.2 	defined in subdivision 7, may be used to administer early childhood family education 
130.3 	programs.
130.4 	(c) An early childhood family education program may use up to ten percent of its 
130.5 	early childhood family education revenue as defined in subdivision 1, including revenue 
130.6 	from participant fees, for equipment that is used in the early childhood family education 
130.7 	program. This revenue may only be used for the following purposes:
130.8 	(1) to purchase or lease computers and related materials; and
130.9 	(2) to purchase or lease equipment for instruction for participating children and 
130.10 	their families.
130.11 	If a district anticipates an unusual circumstance requiring its early childhood family 
130.12 	education program capital expenditures to exceed the ten percent limitation, prior approval 
130.13 	to exceed the limit must be obtained in writing from the commissioner.

130.14 	Sec. 12. Minnesota Statutes 2006, section 124D.135, subdivision 6, is amended to read:
130.15 		Subd. 6.Home visiting levy. A district that is eligible to levy for early childhood 
130.16 	family education under subdivision 3 and that enters into a collaborative agreement to 
130.17 	provide education services and social services to families with young children may levy 
130.18 	an amount equal to $1.60 times the number of people under five years of age residing in 
130.19 	the district on September 1 of the last school year. Levy revenue under this subdivision 
130.20 	must not be included as revenue under subdivision 1. The revenue must be used for home 
130.21 	visiting programs under section 124D.13, subdivision 4. 

130.22 	Sec. 13. Minnesota Statutes 2006, section 124D.15, subdivision 3, is amended to read:
130.23 		Subd. 3.Program requirements. A school readiness program provider must:
130.24 	(1) assess each child's cognitive skills when the child enters and again before the 
130.25 	child leaves the program to inform program planning and promote kindergarten readiness;
130.26 	(2) provide comprehensive program content based on early childhood research and 
130.27 	professional practice that is focused on children's cognitive skills and development and 
130.28 	prepares children for the transition to kindergarten, including early literacy skills;
130.29 	(3) arrange for early childhood screening and appropriate referral;
130.30 	(4) involve parents in program planning and decision making;
130.31 	(5) coordinate with relevant community-based services; and
130.32 	(6) cooperate with adult basic education programs and other adult literacy programs.

131.1 	Sec. 14. [124D.2211] AFTER-SCHOOL COMMUNITY LEARNING 
131.2 	PROGRAMS.
131.3 		Subdivision 1.Establishment. A competitive statewide after-school community 
131.4 	learning grant program is established to provide grants to community or nonprofit 
131.5 	organizations, political subdivisions, for-profit or nonprofit child care centers, or 
131.6 	school-based programs that serve youth after school or during nonschool hours. The 
131.7 	commissioner shall develop criteria for after-school community learning programs.
131.8 		Subd. 2.Program outcomes. The expected outcomes of the after-school 
131.9 	community learning programs are to increase:
131.10 	(1) school connectedness of participants;
131.11 	(2) academic achievement of participating students in one or more core academic 
131.12 	areas;
131.13 	(3) the capacity of participants to become productive adults; and
131.14 	(4) prevent truancy from school and prevent juvenile crime.
131.15 		Subd. 3.Grants. An applicant shall submit an after-school community learning 
131.16 	program proposal to the commissioner. The submitted plan must include:
131.17 	(1) collaboration with and leverage of existing community resources that have 
131.18 	demonstrated effectiveness;
131.19 	(2) outreach to children and youth; and
131.20 	(3) involvement of local governments, including park and recreation boards or 
131.21 	schools, unless no government agency is appropriate.
131.22 	Proposals will be reviewed and approved by the commissioner.

131.23 	Sec. 15. Minnesota Statutes 2006, section 124D.531, subdivision 1, is amended to read:
131.24 		Subdivision 1.State total adult basic education aid. (a) The state total adult basic 
131.25 	education aid for fiscal year 2005 is $36,509,000. The state total adult basic education 
131.26 	aid for fiscal year 2006  equals $36,587,000 plus any amount that is not paid for during 
131.27 	the previous fiscal year, as a result of adjustments under subdivision 4, paragraph (a), or 
131.28 	section 124D.52, subdivision 3. The state total adult basic education aid for fiscal year 
131.29 	2007 equals $37,673,000 plus any amount that is not paid for during the previous fiscal 
131.30 	year, as a result of adjustments under subdivision 4, paragraph (a), or section 124D.52, 
131.31 	subdivision 3. The state total adult basic education aid for fiscal year 2008 equals 
131.32 	$40,650,000, plus any amount that is not paid during the previous fiscal year as a result of 
131.33 	adjustments under subdivision 4, paragraph (a), or section 124D.52, subdivision 3. The 
131.34 	state total adult basic education aid for later fiscal years equals:
132.1 	(1) the state total adult basic education aid for the preceding fiscal year plus any 
132.2 	amount that is not paid for during the previous fiscal year, as a result of adjustments under 
132.3 	subdivision 4, paragraph (a), or section 124D.52, subdivision 3; times
132.4 	(2) the lesser of:
132.5 	(i) 1.03; or
132.6 	(ii) the greater of 1.00 or the ratio of the state total contact hours in the first prior 
132.7 	program year to the state total contact hours in the second prior program year.
132.8 	Beginning in fiscal year 2002, two percent of the state total adult basic education 
132.9 	aid must be set aside for adult basic education supplemental service grants under section 
132.10 	124D.522.
132.11 	(b) The state total adult basic education aid, excluding basic population aid, equals 
132.12 	the difference between the amount computed in paragraph (a), and the state total basic 
132.13 	population aid under subdivision 2.

132.14 	Sec. 16. Minnesota Statutes 2006, section 124D.531, subdivision 4, is amended to read:
132.15 		Subd. 4.Adult basic education program aid limit. (a) Notwithstanding 
132.16 	subdivisions 2 and 3, the total adult basic education aid for a program per prior year 
132.17 	contact hour must not exceed $21 $22 per prior year contact hour computed under 
132.18 	subdivision 3, clause (2).
132.19 	(b) For fiscal year 2004, the aid for a program under subdivision 3, clause (2), 
132.20 	adjusted for changes in program membership, must not exceed the aid for that program 
132.21 	under subdivision 3, clause (2), for fiscal year 2003 by more than the greater of eight 
132.22 	percent or $10,000.
132.23 	(c) For fiscal year 2005, the aid for a program under subdivision 3, clause (2), 
132.24 	adjusted for changes in program membership, must not exceed the sum of the aid for that 
132.25 	program under subdivision 3, clause (2), and Laws 2003, First Special Session chapter 9, 
132.26 	article 9, section 8, paragraph (a), for the preceding fiscal year by more than the greater of 
132.27 	eight percent or $10,000.
132.28 	(d) (b) For fiscal year 2006 and later fiscal year 2007, the aid for a program under 
132.29 	subdivision 3, clause (2), adjusted for changes in program membership, must not exceed 
132.30 	the aid for that program under subdivision 3, clause (2), for the first preceding fiscal year 
132.31 	by more than the greater of eight percent or $10,000.
132.32 	(c) For fiscal year 2008, the aid for a program under subdivision 3, clause (2), 
132.33 	adjusted for changes in program membership, shall not be limited.
132.34 	(d) For fiscal year 2009 and later, the aid for a program under subdivision 3, 
132.35 	clause (2), adjusted for changes in program membership, must not exceed the aid for 
133.1 	that program under subdivision 3, clause (2), for the first preceding fiscal year by more 
133.2 	than the greater of 11 percent or $10,000.
133.3 	(e) Adult basic education aid is payable to a program for unreimbursed costs 
133.4 	occurring in the program year as defined in section 124D.52, subdivision 3.
133.5 	(f) Any adult basic education aid that is not paid to a program because of the 
133.6 	program aid limitation under paragraph (a) must be added to the state total adult basic 
133.7 	education aid for the next fiscal year under subdivision 1. Any adult basic education aid 
133.8 	that is not paid to a program because of the program aid limitations under paragraph (b), 
133.9 	(c), or (d), must be reallocated among programs by adjusting the rate per contact hour 
133.10 	under subdivision 3, clause (2).

133.11 	Sec. 17. APPROPRIATION.
 133.12 		Subdivision 1.Department of Education. The sums indicated in this section are 
133.13 	appropriated from the general fund to the Department of Education for the fiscal years 
133.14 	designated.
133.15 		Subd. 2.Early childhood family education aid. For early childhood family 
133.16 	education aid under Minnesota Statutes, section 124D.135:

133.17		$
	 21,106,000
	.....
	2008
	
133.18		$
	 29,601,000
	.....
	2009
	
133.19 	The 2008 appropriation includes $1,796,000 for 2007 and $19,310,000 for 2008.
133.20 	The 2009 appropriation includes $2,145,000 for 2008 and $27,456,000 for 2009.
133.21 		Subd. 3.School readiness. For revenue for school readiness programs under 
133.22 	Minnesota Statutes, sections 124D.15 and 124D.16:

133.23		$
	9,995,000
	.....
	2008
	
133.24		$
	10,095,000
	.....
	2009
	
133.25 	The 2008 appropriation includes $909,000 for 2007 and $9,086,000 for 2008.
133.26 	The 2009 appropriation includes $1,009,000 for 2008 and $9,086,000 for 2009.
133.27 		Subd. 4.Health and developmental screening aid. For health and developmental 
133.28 	screening aid under Minnesota Statutes, sections 121A.17 and 121A.19:

133.29		$
	3,159,000
	.....
	2008
	
133.30		$
	3,330,000
	.....
	2009
	
133.31 	The 2008 appropriation includes $288,000 for 2007 and $2,871,000 for 2008.
133.32 	The 2009 appropriation includes $319,000 for 2008 and $3,011,000 for 2009.
134.1 		Subd. 5.Educate parents partnership. For the educate parents partnership under 
134.2 	Minnesota Statutes, section 124D.129:

134.3		$
	50,000
	.....
	2008
	
134.4		$
	50,000
	.....
	2009
	
134.5 	Any funds unexpended in fiscal year 2008 do not cancel and are available in fiscal 
134.6 	year 2009.
134.7 		Subd. 6.Kindergarten entrance assessment initiative and intervention 
134.8 	program. For the kindergarten entrance assessment initiative and intervention program 
134.9 	under Minnesota Statutes, section 124D.162:

134.10		$
	 287,000
	.....
	2008
	
134.11		$
	 287,000
	.....
	2009
	
134.12 	Any funds unexpended in fiscal year 2008 do not cancel and are available in fiscal 
134.13 	year 2009.
134.14 		Subd. 7.Head Start programs. For Head Start programs under Minnesota 
134.15 	Statutes, section 119A.52:

134.16		$
	20,100,000
	.....
	2008
	
134.17		$
	20,100,000
	.....
	2009
	
134.18 	Any balance in the first year does not cancel but is available in the second year.
134.19 		Subd. 8.Community education aid. For community education aid under 
134.20 	Minnesota Statutes, section 124D.20:

134.21		$
	1,307,000
	.....
	2008
	
134.22		$
	816,000
	.....
	2009
	
134.23 	The 2008 appropriation includes $195,000 for 2007 and $1,112,000 for 2008.
134.24 	The 2009 appropriation includes $123,000 for 2008 and $693,000 for 2009.
134.25 		Subd. 9.Adults with disabilities program aid. For adults with disabilities 
134.26 	programs under Minnesota Statutes, section 124D.56:

134.27		$
	710,000
	.....
	2008
	
134.28		$
	 710,000
	.....
	2009
	
134.29 	The 2008 appropriation includes $71,000 for 2007 and $639,000 for 2008.
134.30 	The 2009 appropriation includes $71,000 for 2008 and $639,000 for 2009.
134.31 	School districts operating existing adults with disabilities programs that are not fully 
134.32 	funded shall receive full funding for the program beginning in fiscal year 2008 before the 
134.33 	commissioner awards grants to other districts.
135.1 		Subd. 10.Hearing-impaired adults. For programs for hearing-impaired adults 
135.2 	under Minnesota Statutes, section 124D.57:

135.3		$
	70,000
	.....
	2008
	
135.4		$
	70,000
	.....
	2009
	
135.5 		Subd. 11.School-age care revenue. For extended day aid under Minnesota 
135.6 	Statutes, section 124D.22:

135.7		$
	1,000
	.....
	2008
	
135.8		$
	1,000
	.....
	2009
	
135.9 	The 2008 appropriation includes $0 for 2007 and $1,000 for 2008.
135.10 	The 2009 appropriation includes $0 for 2008 and $1,000 for 2009.
135.11 		Subd. 12.After-school community learning grants. For after-school community 
135.12 	learning grants:

135.13		$
	2,775,000
	.....
	2008
	
135.14		$
	2,600,000
	.....
	2009
	
135.15 	The commissioner may hire one full-time equivalent staff person to administer the 
135.16 	statewide after-school community learning grant program.
135.17 	This is a onetime appropriation.
135.18 		Subd. 13.Adult basic education aid. For adult basic education aid under 
135.19 	Minnesota Statutes, section 124D.531:

135.20		$
	 40,347,000
	.....
	2008
	
135.21		$
	 41,745,000
	.....
	2009
	
135.22 	The 2008 appropriation includes $3,759,000 for 2007 and $36,588,000 for 2008.
135.23 	The 2009 appropriation includes $4,065,000 for 2008 and $37,680,000 for 2009.
135.24 		Subd. 14.GED test fees. For GED test fees under Minnesota Statutes, section 
135.25 	124D.55:

135.26		$
	 125,000
	.....
	2008
	
135.27		$
	 125,000
	.....
	2009
	
135.28 	Any balance in the first year does not cancel but is available in the second year.
135.29 		Subd. 15.Adult literacy grants for recent immigrants. For adult literacy grants 
135.30 	for recent immigrants to Minnesota under Laws 2006, chapter 282, article 2, section 26:

135.31		$
	1,250,000
	.....
	2008

135.32 	Sec. 18. APPROPRIATIONS; DEPARTMENT OF HEALTH.
 136.1 		Subdivision 1.Department of Health. The sums indicated in this section are 
136.2 	appropriated from the general fund to the Department of Health for the fiscal years 
136.3 	designated.
136.4 		Subd. 2.Lead hazard reduction. For lead hazard reduction under Minnesota 
136.5 	Statutes, section 144.9512:

136.6		$
	100,000
	.....
	2008
	
136.7		$
	100,000
	.....
	2009

136.8 	Sec. 19.  REPEALER.
 136.9 	Minnesota Statutes 2006, sections 124D.175; and 124D.531, subdivision 5, are 
136.10 	repealed.

136.11 	ARTICLE 10
136.12 	EDUCATION FORECAST ADJUSTMENTS
136.13 	A. GENERAL EDUCATION

136.14 	Section 1. Laws 2005, First Special Session chapter 5, article 1, section 54, subdivision 
136.15 	2, as amended by Laws 2006, chapter 282, article 3, section 2, is amended to read:
136.16 		Subd. 2General education aid  For general education  aid under Minnesota Statutes, 
136.17 	section 126C.13, subdivision 4:  

136.18		$
	 5,819,153,000
	.....
	2006
	
136.19
136.20		$
	5,472,238,000
5,453,693,000
	.....
	2007
	
136.21 	The 2006 appropriation includes $787,978,000 for 2005 and $5,031,175,000 for 
136.22 	2006.  
136.23 	The 2007 appropriation includes $513,848,000 $518,218,000 for 2006 and 
136.24 	$4,958,390,000 $4,935,475,000 for 2007.

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

136.26 	Sec. 2. Laws 2005, First Special Session chapter 5, article 1, section 54, subdivision 4, 
136.27 	is amended to read:
136.28 		Subd. 4.Enrollment options transportation. For transportation of pupils attending 
136.29 	postsecondary institutions under Minnesota Statutes, section 124D.09, or for transportation 
136.30 	of pupils attending nonresident districts under Minnesota Statutes, section 124D.03:

137.1		$
	55,000
	.....
	2006
	
137.2
137.3		$
	55,000
93,000
	.....
	2007

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

137.5 	Sec. 3. Laws 2005, First Special Session chapter 5, article 1, section 54, subdivision 5, 
137.6 	as amended by Laws 2006, chapter 282, article 7, section 2, is amended to read:
137.7 		Subd. 5.Abatement revenue. For abatement aid under  Minnesota Statutes, section 
137.8 	127A.49:

137.9		$
	909,000
	.....
	2006
	
137.10
137.11		$
	1,026,000
765,000
	.....
	2007
	
137.12 	The 2006 appropriation includes $187,000 for 2005 and   $722,000 for 2006.  
137.13 	The 2007 appropriation includes  $80,000 for 2006 and   $946,000 $685,000 for 2007.

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

137.15 	Sec. 4. Laws 2005, First Special Session chapter 5, article 1, section 54, subdivision 6, 
137.16 	as amended by Laws 2006, chapter 282, article 7, section 3, is amended to read:
137.17 		Subd. 6. Consolidation transition. For districts  consolidating under Minnesota 
137.18 	Statutes, section 123A.485:

137.19
137.20		$
	527,000
388,000
	.....
	2007
	
137.21 	The 2007 appropriation includes $0 for 2006 and $527,000 $388,000 for 2007.  

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

137.23 	Sec. 5. Laws 2005, First Special Session chapter 5, article 1, section 54, subdivision 7, 
137.24 	as amended by Laws 2006, chapter 282, article 7, section 4, is amended to read:
137.25 		Subd. 7. Nonpublic pupil education aid. For nonpublic  pupil education aid under 
137.26 	Minnesota Statutes, sections 123B.87  and 123B.40 to 123B.43:

137.27		$
	15,458,000
	.....
	2006
	
137.28
137.29		$
	15,991,000
15,972,000
	.....
	2007
	
137.30 	The 2006 appropriation includes  $1,864,000 for 2005 and   $13,594,000 for 2006.
137.31 	The 2007 appropriation includes  $1,510,000 for 2006 and   $14,481,000 $14,462,000
137.32 	for 2007.

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

138.2 	Sec. 6. Laws 2005, First Special Session chapter 5, article 1, section 54, subdivision 8, 
138.3 	as amended by Laws 2006, chapter 282, article 7, section 5, is amended to read:
138.4 		Subd. 8. Nonpublic pupil transportation. For nonpublic  pupil transportation aid 
138.5 	under Minnesota Statutes, section  123B.92, subdivision 9:

138.6		$
	21,371,000
	.....
	2006
	
138.7
138.8		$
	20,843,000
21,133,000
	.....
	2007
	
138.9 	The 2006 appropriation includes $3,274,000 for 2005 and   $18,097,000 for 2006.
138.10 	The 2007 appropriation includes  $2,010,000 for 2006 and   $18,833,000 $19,123,000
138.11 	for 2007.

138.12 	EFFECTIVE DATE. This section is effective the day following final enactment.
138.13 	B. EDUCATION EXCELLENCE

138.14 	Sec. 7. Laws 2005, First Special Session chapter 5, article 2, section 84, subdivision 2, 
138.15 	as amended by Laws 2006, chapter 282, article 7, section 6, is amended to read:
138.16 	Subd. 2.  Charter school building lease aid. For building  lease aid under Minnesota 
138.17 	Statutes, section 124D.11, subdivision 4:  

138.18		$
	25,331,000
	.....
	2006
	
138.19
138.20		$
	27,806,000
27,795,000
	.....
	2007
	
138.21 	The 2006 appropriation includes  $3,173,000 for 2005 and   $22,158,000 for 2006.  
138.22 	The 2007 appropriation includes  $2,462,000 for 2006 and   $25,344,000 $25,333,000
138.23 	for 2007.  

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

138.25 	Sec. 8. Laws 2005, First Special Session chapter 5, article 2, section 84, subdivision 3, 
138.26 	as amended by Laws 2006, chapter 282, article 7, section 7, is amended to read:
138.27 		Subd. 3. Charter school startup aid. For charter school  startup cost aid under 
138.28 	Minnesota Statutes, section 124D.11:  

138.29		$
	1,291,000
	.....
	2006
	
138.30
138.31		$
	2,347,000
2,316,000
	.....
	2007
	
138.32 	The 2006 appropriation includes $0 for 2005 and $1,291,000 for 2006.  
139.1 	The 2007 appropriation includes  $143,000 for 2006 and   $2,204,000 $2,173,000
139.2 	for 2007.  

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

139.4 	Sec. 9. Laws 2005, First Special Session chapter 5, article 2, section 84, subdivision 4, 
139.5 	as amended by Laws 2006, chapter 282, article 7, section 8, is amended to read:
139.6 		Subd. 4. Integration aid. For integration aid under  Minnesota Statutes, section 
139.7 	124D.86, subdivision 5:  

139.8		$
	59,404,000
	.....
	2006
	
139.9139.10
		$
	58,405,000
58,075,000
	.....
	2007
	
139.11 	The 2006 appropriation includes $8,545,000 for 2005 and   $50,859,000 for 2006.  
139.12 	The 2007 appropriation includes  $5,650,000 for 2006 and   $52,755,000 $52,425,000
139.13 	for 2007.  

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

139.15 	Sec. 10. Laws 2005, First Special Session chapter 5, article 2, section 84, subdivision 
139.16 	6, as amended by Laws 2006, chapter 282, article 7, section 9, is amended to read:
139.17 		Subd. 6. Interdistrict desegregation or integration transportation grants. For 
139.18 	interdistrict desegregation or integration transportation grants under Minnesota Statutes, 
139.19 	section 124D.87:

139.20		$
	6,032,000
	.....
	2006
	
139.21
139.22		$
	10,134,000
8,169,000
	.....
	2007

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

139.24 	Sec. 11. Laws 2005, First Special Session chapter 5, article 2, section 84, subdivision 
139.25 	10, as amended by Laws 2006, chapter 282, article 7, section 11, is amended to read:
139.26 		Subd. 10. Tribal contract schools. For tribal contract  school aid under Minnesota 
139.27 	Statutes, section 124D.83:  

139.28		$
	2,338,000
	.....
	2006
	
139.29
139.30		$
	2,357,000
2,060,000
	.....
	2007
	
139.31 	The 2006 appropriation includes $348,000 for 2005 and   $1,990,000 for 2006.  
140.1 	The 2007 appropriation includes  $221,000 for 2006 and   $2,136,000 $1,839,000
140.2 	for 2007.  

140.3 	EFFECTIVE DATE. This section is effective the day following final enactment.
140.4 	C. SPECIAL EDUCATION

140.5 	Sec. 12. Laws 2005, First Special Session chapter 5, article 3, section 18, subdivision 
140.6 	2, as amended by Laws 2006, chapter 282, article 7, section 12, is amended to read:
140.7 	Subd. 2.  Special education; regular. For special  education aid under Minnesota Statutes, 
140.8 	section 125A.75:  

140.9		$
	 559,485,000
	.....
	2006
	
140.10
140.11		$
	528,106,000
529,257,000
	.....
	2007
	
140.12 	The 2006 appropriation includes $83,078,000 for 2005 and   $476,407,000 for 2006.  
140.13 	The 2007 appropriation includes  $52,934,000 for 2006 and   $475,172,000
140.14 	$476,323,000 for 2007.  

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

140.16 	Sec. 13. Laws 2005, First Special Session chapter 5, article 3, section 18, subdivision 
140.17 	3, as amended by Laws 2006, chapter 282, article 7, section 13, is amended to read:
140.18 		Subd. 3. Aid for children with disabilities. For aid  under Minnesota Statutes, 
140.19 	section 125A.75, subdivision 3, for  children with disabilities placed in residential facilities  
140.20 	within the district boundaries for whom no district of residence  can be determined:  

140.21		$
	1,527,000
	.....
	2006
	
140.22
140.23		$
	1,624,000
1,410,000
	.....
	2007
	
140.24 	If the appropriation for either year is insufficient, the  appropriation for the other 
140.25 	year is available.  

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

140.27 	Sec. 14. Laws 2005, First Special Session chapter 5, article 3, section 18, subdivision 
140.28 	4, as amended by Laws 2006, chapter 282, article 7, section 14, is amended to read:
140.29 		Subd. 4. Travel for home-based services. For aid for  teacher travel for home-based 
140.30 	services under Minnesota Statutes,  section 125A.75, subdivision 1:  

141.1		$
	198,000
	.....
	2006
	
141.2
141.3		$
	195,000
224,000
	.....
	2007
	
141.4 	The 2006 appropriation includes $28,000 for 2005 and   $170,000 for 2006.  
141.5 	The 2007 appropriation includes  $18,000 for 2006 and   $177,000 $206,000 for 2007.  

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

141.7 	Sec. 15. Laws 2005, First Special Session chapter 5, article 3, section 18, subdivision 
141.8 	6, as amended by Laws 2006, chapter 282, article 7, section 16, is amended to read:
141.9 	Subd. 6. Transition for disabled students. For aid for  transition programs for children 
141.10 	with disabilities under  Minnesota Statutes, section 124D.454:  

141.11		$
	9,300,000
	.....
	2006
	
141.12
141.13		$
	8,781,000
8,800,000
	.....
	2007
	
141.14 	The 2006 appropriation includes $1,380,000 for 2005 and   $7,920,000 for 2006.  
141.15 	The 2007 appropriation includes  $880,000 for 2006 and   $7,901,000 $7,920,000
141.16 	for 2007.  

141.17 	EFFECTIVE DATE. This section is effective the day following final enactment.
141.18 	D. FACILITIES

141.19 	Sec. 16. Laws 2005, First Special Session chapter 5, article 4, section 25, subdivision 
141.20 	2, as amended by Laws 2006, chapter 282, article 7, section 18, is amended to read:
141.21 		Subd. 2. Health and safety revenue. For health and  safety aid according to 
141.22 	Minnesota Statutes, section 123B.57,  subdivision 5:  

141.23		$
	823,000
	.....
	2006
	
141.24
141.25		$
	352,000
249,000
	.....
	2007
	
141.26 	The 2006 appropriation includes $211,000 for 2005 and   $612,000 for 2006.  
141.27 	The 2007 appropriation includes  $68,000 for 2006 and   $284,000 $181,000 for 2007.  

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

141.29 	Sec. 17. Laws 2005, First Special Session chapter 5, article 4, section 25, subdivision 
141.30 	3, as amended by Laws 2006, chapter 282, article 5, section 2, is amended to read:
141.31 		Subd. 3. Debt service equalization. For debt service aid  according to Minnesota 
141.32 	Statutes, section 123B.53, subdivision 6:  

142.1		$
	27,206,000
	.....
	2006
	
142.2
142.3		$
	18,410,000
18,395,000
	.....
	2007
	
142.4 	The 2006 appropriation includes $4,654,000 for 2005 and   $22,552,000 for 2006.  
142.5 	The 2007 appropriation includes $2,504,000 for 2006 and   $15,906,000 $15,891,000
142.6 	for 2007.  

142.7 	EFFECTIVE DATE. This section is effective the day following final enactment.
142.8 	E. NUTRITION

142.9 	Sec. 18. Laws 2005, First Special Session chapter 5, article 5, section 17, subdivision 
142.10 	3, as amended by Laws 2006, chapter 282, article 7, section 20, is amended to read:
142.11 		Subd. 3. Traditional school breakfast; kindergarten  milk. For traditional school 
142.12 	breakfast aid and kindergarten  milk under Minnesota Statutes, sections 124D.1158 and 
142.13 	124D.118:  

142.14		$
	4,856,000
	.....
	2006
	
142.15
142.16		$
	5,044,000
5,175,000
	.....
	2007

142.17 	EFFECTIVE DATE. This section is effective the day following final enactment.
142.18 	F. EARLY CHILDHOOD EDUCATION

142.19 	Sec. 19. Laws 2005, First Special Session chapter 5, article 7, section 20, subdivision 
142.20 	2, as amended by Laws 2006, chapter 282, article 7, section 24, is amended to read:
142.21 		Subd. 2. School readiness. For revenue for school  readiness programs under 
142.22 	Minnesota Statutes, sections 124D.15  and 124D.16:  

142.23		$
	9,528,000
	.....
	2006
	
142.24
142.25		$
	9,020,000
9,087,000
	.....
	2007
	
142.26 	The 2006 appropriation includes  $1,415,000 for 2005 and   $8,113,000 for 2006.
142.27 	The 2007 appropriation includes  $901,000 for 2006 and   $8,119,000 $8,186,000
142.28 	for 2007.

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

142.30 	Sec. 20. Laws 2005, First Special Session chapter 5, article 7, section 20, subdivision 
142.31 	3, as amended by Laws 2006, chapter 282, article 2, section 24, is amended to read:
143.1 		Subd. 3. Early childhood family education aid. For early  childhood family 
143.2 	education aid under Minnesota Statutes, section  124D.135:

143.3		$
	15,105,000
	.....
	2006
	
143.4
143.5		$
	17,792,000
17,639,000
	.....
	2007
	
143.6 	The 2006 appropriation includes $1,859,000 for 2005 and $13,246,000 for 2006.
143.7 	The 2007 appropriation includes $1,471,000 for 2006 and $16,321,000 $16,168,000
143.8 	for 2007.

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

143.10 	Sec. 21. Laws 2005, First Special Session chapter 5, article 7, section 20, subdivision 
143.11 	4, as amended by Laws 2006, chapter 282, article 2, section 25, is amended to read:
143.12 		Subd. 4. Health and developmental screening aid. For  health and developmental 
143.13 	screening aid under Minnesota Statutes,  sections 121A.17 and 121A.19:

143.14		$
	3,000,000
	.....
	2006
	
143.15
143.16		$
	2,997,000
2,880,000
	.....
	2007
	
143.17 	The 2006 appropriation includes $417,000 for 2005 and  $2,583,000 for 2006 
143.18 	The 2007 appropriation includes $287,000 for 2006 and $2,710,000 $2,593,000
143.19 	for 2007.

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

143.21 	Sec. 22. Laws 2006, chapter 282, article 2, section 28, subdivision 4, is amended to 
143.22 	read:
143.23 		Subd. 4.Early childhood Part C. For the expansion of early childhood Part C 
143.24 	services:

143.25		$
	400,000-0-
	.....
	2007

143.26 	EFFECTIVE DATE. This section is effective the day following final enactment.
143.27 	G. PREVENTION

143.28 	Sec. 23. Laws 2005, First Special Session chapter 5, article 8, section 8, subdivision 2, 
143.29 	as amended by Laws 2006, chapter 282, article 7, section 25, is amended to read:
143.30 	Subd. 2.  Community education aid. For community  education aid under Minnesota 
143.31 	Statutes, section 124D.20:  

144.1		$
	2,043,000
	.....
	2006
	
144.2
144.3		$
	1,949,000
1,942,000
	.....
	2007
	
144.4 	The 2006 appropriation includes  $385,000 for 2005 and   $1,658,000 for 2006.  
144.5 	The 2007 appropriation includes  $184,000 for 2006 and   $1,765,000 $1,758,000
144.6 	for 2007.

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

144.8 	Sec. 24. Laws 2005, First Special Session chapter 5, article 8, section 8, subdivision 5, 
144.9 	as amended by Laws 2006, chapter 282, article 7, section 27, is amended to read:
144.10 		Subd. 5. School-age care revenue. For extended day aid  under Minnesota Statutes, 
144.11 	section 124D.22:  

144.12		$
	17,000
	.....
	2006
	
144.13		$
	4,0006,000
	.....
	2007
	
144.14 	The 2006 appropriation includes $4,000 for 2005 and $13,000  for 2006.  
144.15 	The 2007 appropriation includes  $1,000 for 2006 and  $3,000 $5,000 for 2007.  

144.16 	EFFECTIVE DATE. This section is effective the day following final enactment.
144.17 	H. SELF-SUFFICIENCY AND LIFELONG LEARNING

144.18 	Sec. 25. Laws 2005, First Special Session chapter 5, article 9, section 4, subdivision 2, 
144.19 	is amended to read:
144.20 		Subd. 2.Adult basic education aid. For adult basic education aid under Minnesota 
144.21 	Statutes:

144.22		$
	36,518,000
	.....
	2006
	
144.23
144.24		$
	36,540,000
37,486,000
	.....
	2007
	
144.25 	The 2006 appropriation includes $5,707,000 for 2005 and $30,811,000 for 2006.
144.26 	The 2007 appropriation includes $5,737,000 $3,654,000 for 2006 and $30,803,000
144.27 	$33,832,000 for 2007.

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

144.29 	ARTICLE 11
144.30 	TECHNICAL AND CONFORMING AMENDMENTS

144.31 	Section 1. Minnesota Statutes 2006, section 122A.628, subdivision 2, is amended to 
144.32 	read:
145.1 		Subd. 2.Revenue. A school district that is selected to participate in the schools 
145.2 	mentoring schools program under this section may utilize its professional compensation 
145.3 	revenue under section 122A.4142 122A.414, subdivision 4, to pay regional training sites 
145.4 	for staff development and training services.

145.5 	Sec. 2. Minnesota Statutes 2006, section 123A.73, subdivision 8, is amended to read:
145.6 		Subd. 8.Taxable property. As of the effective date of a consolidation of districts or 
145.7 	the dissolution of a district and its attachment to one or more existing districts pursuant 
145.8 	to chapter 123A, and subject to the conditions of section 126C.42, subdivision 1, all 
145.9 	the taxable property which is in the newly created or enlarged district and which was 
145.10 	previously taxable for the payment of any statutory operating debt theretofore incurred by 
145.11 	any preexisting district of which the taxable property was a part prior to the consolidation 
145.12 	or dissolution and attachment shall remain taxable for the payment of that debt and shall 
145.13 	not become taxable for the payment of any statutory operating debt theretofore incurred 
145.14 	by any preexisting district of which the taxable property was not a part prior to the 
145.15 	consolidation or dissolution and attachment. The amount of statutory operating debt 
145.16 	attributable to that taxable property and to the newly created or enlarged district in which 
145.17 	it is located, and the amount of a preexisting district's reserved fund balance reserve 
145.18 	account for purposes of statutory operating debt reduction attributable to the newly created 
145.19 	or enlarged district, shall be apportioned according to the proportion which the adjusted 
145.20 	net tax capacity of that part of the preexisting district bears to the total adjusted net tax 
145.21 	capacity of the entire preexisting district at the time of the consolidation or dissolution 
145.22 	and attachment. This apportionment shall be made by the county auditor and shall 
145.23 	be incorporated as an annex to the order of the commissioner dividing the assets and 
145.24 	liabilities of the component districts. As used in this section, "statutory operating debt" 
145.25 	shall have the meaning given it in section 123B.81. 

145.26 	Sec. 3. Minnesota Statutes 2006, section 123B.79, subdivision 6, is amended to read:
145.27 		Subd. 6.Account transfer for statutory operating debt. On June 30 of each year, 
145.28 	a district may make a permanent transfer from the general fund account entitled "net 
145.29 	unreserved general fund balance since statutory operating debt" to the account entitled 
145.30 	"reserved fund balance reserve account for purposes of statutory operating debt reduction." 
145.31 	The amount of the transfer is limited to the lesser of (a) the net unreserved general fund 
145.32 	balance, or (b) the sum of the remaining statutory operating debt levies authorized for all 
145.33 	future years according to section 126C.42, subdivision 1. If the net unreserved general 
145.34 	fund balance is less than zero, the district may not make a transfer.

146.1 	Sec. 4. Minnesota Statutes 2006, section 123B.81, subdivision 2, is amended to read:
146.2 		Subd. 2.Statutory operating debt. If the amount of the operating debt is more 
146.3 	than 2-1/2 percent of the most recent fiscal year's expenditure amount for the funds 
146.4 	considered under subdivision 1, the net negative undesignated fund balance is defined as 
146.5 	"statutory operating debt" for the purposes of this section and sectionssection 123B.83
146.6 	and 126C.42, subdivision 1. 

146.7 	Sec. 5. Minnesota Statutes 2006, section 123B.81, subdivision 4, is amended to read:
146.8 		Subd. 4.Debt elimination. If an audit or other verification procedure conducted 
146.9 	pursuant to subdivision 3 determines that a statutory operating debt exists, a district must 
146.10 	follow the procedures set forth in this section 126C.42, subdivision 1, to eliminate this 
146.11 	statutory operating debt. 

146.12 	Sec. 6. Minnesota Statutes 2006, section 123B.81, subdivision 7, is amended to read:
146.13 		Subd. 7.Applicability. This section and the provisions of section 126C.42, 
146.14 	subdivision 1, are is applicable only to common, independent, and special school districts 
146.15 	and districts formed pursuant to Laws 1967, chapter 822, as amended, and Laws 1969, 
146.16 	chapters 775 and 1060, as amended. This section and the provisions of section 126C.42, 
146.17 	subdivision 1, do does not apply to Independent School District No. 625. 

146.18 	Sec. 7. Minnesota Statutes 2006, section 123B.83, subdivision 2, is amended to read:
146.19 		Subd. 2.Net unreserved general fund balances. A school district must limit its 
146.20 	expenditures so that its net unreserved general fund balance does not constitute statutory 
146.21 	operating debt as defined in section 126C.42 under section 123B.81.

146.22 	Sec. 8. Minnesota Statutes 2006, section 124D.34, subdivision 7, is amended to read:
146.23 		Subd. 7.Foundation staff. The commissioner of education shall appoint the 
146.24 	executive director of the foundation from three candidates nominated and submitted by the 
146.25 	foundation board of directors and, as necessary, other staff who shall perform duties and 
146.26 	have responsibilities solely related to the foundation. The employees appointed are not 
146.27 	state employees under chapter 43A, but are covered under section 3.736. The employees 
146.28 	may participate in the state health and state insurance plans for employees in unclassified 
146.29 	service. The employees shall be supervised by the executive director. 
146.30 	The commissioner shall appoint from the Office of Lifework Development a liaison 
146.31 	to the foundation board from the division in the department responsible for career and 
146.32 	technical education.

147.1 	Sec. 9. Minnesota Statutes 2006, section 124D.65, subdivision 11, is amended to read:
147.2 		Subd. 11.Allocations from cooperative units. For the purposes of this section 
147.3 	and section 125A.77, pupils of limited English proficiency enrolled in a cooperative 
147.4 	or intermediate school district unit shall be counted by the school district of residence, 
147.5 	and the cooperative unit shall allocate its approved expenditures for limited English 
147.6 	proficiency programs among participating school districts. Limited English proficiency 
147.7 	aid for services provided by a cooperative or intermediate school district shall be paid to 
147.8 	the participating school districts. 

147.9 	Sec. 10. Minnesota Statutes 2006, section 125A.39, is amended to read:
147.10 	125A.39 LOCAL INTERAGENCY AGREEMENTS.
147.11 	School boards and the county board may enter into agreements to cooperatively 
147.12 	serve and provide funding for children with disabilities, under age five, and their families 
147.13 	within a specified geographic area.
147.14 	The local interagency agreement must address, at a minimum, the following issues:
147.15 	(1) responsibilities of local agencies on local interagency early intervention 
147.16 	committees (IEIC's), consistent with section 125A.38; 
147.17 	(2) assignment of financial responsibility for early intervention services;
147.18 	(3) methods to resolve intraagency and interagency disputes;
147.19 	(4) identification of current resources and recommendations about the allocation of 
147.20 	additional state and federal early intervention funds under the auspices of United States 
147.21 	Code, title 20, section 1471 et seq. (Part C, Public Law 102-119 108-446) and United 
147.22 	States Code, title 20, section 631, et seq. (Chapter I, Public Law 89-313);
147.23 	(5) data collection; and
147.24 	(6) other components of the local early intervention system consistent with Public 
147.25 	Law 102-119.

147.26 	Sec. 11. Minnesota Statutes 2006, section 125A.42, is amended to read:
147.27 	125A.42 PROCEDURAL SAFEGUARDS; PARENT AND CHILD RIGHTS.
147.28 	(a) This section applies to local school and county boards for children from birth 
147.29 	through age two who are eligible for Part H C, Public Law 102-119 108-446, and their 
147.30 	families. This section must be consistent with the Individuals with Disabilities Education 
147.31 	Act, United States Code, title 20, sections 1471 to 1485 (Part H C, Public Law 102-119
147.32 	108-446), regulations adopted under United States Code, title 20, sections 1471 to 1485, 
147.33 	and sections 125A.259 to 125A.48. 
147.34 	(b) A parent has the right to:
148.1 	(1) inspect and review early intervention records;
148.2 	(2) prior written notice of a proposed action in the parents' native language unless it 
148.3 	is clearly not feasible to do so;
148.4 	(3) give consent to any proposed action;
148.5 	(4) selectively accept or decline any early intervention service; and
148.6 	(5) resolve issues regarding the identification, evaluation, or placement of the child, 
148.7 	or the provision of appropriate early intervention services to the child and the child's 
148.8 	family through an impartial due process hearing pursuant to section 125A.46. 
148.9 	(c) The eligible child has the right to have a surrogate parent appointed by a school 
148.10 	district as required by section 125A.07. 

148.11 	Sec. 12. Minnesota Statutes 2006, section 125A.44, is amended to read:
148.12 	125A.44 COMPLAINT PROCEDURE.
148.13 	(a) An individual or organization may file a written signed complaint with the 
148.14 	commissioner of the state lead agency alleging that one or more requirements of the Code 
148.15 	of Federal Regulations, title 34, part 303, is not being met. The complaint must include:
148.16 	(1) a statement that the state has violated the Individuals with Disabilities Education 
148.17 	Act, United States Code, title 20, section 1471 et seq. (Part C, Public Law 102-119
148.18 	108-446) or Code of Federal Regulations, title 34, section 303; and
148.19 	(2) the facts on which the complaint is based.
148.20 	(b) The commissioner of the state lead agency shall receive and coordinate with 
148.21 	other state agencies the review and resolution of a complaint within 60 calendar days 
148.22 	according to the state interagency agreement required under section 125A.48. The 
148.23 	development and disposition of corrective action orders for nonschool agencies shall be 
148.24 	determined by the State Agency Committee (SAC). Failure to comply with corrective 
148.25 	orders may result in fiscal actions or other measures. 

148.26 	Sec. 13. Minnesota Statutes 2006, section 125A.45, is amended to read:
148.27 	125A.45 INTERAGENCY DISPUTE PROCEDURE.
148.28 	(a) A dispute between a school board and a county board that is responsible for 
148.29 	implementing the provisions of section 125A.29 regarding early identification, child and 
148.30 	family assessment, service coordination, and IFSP development and implementation must 
148.31 	be resolved according to this subdivision when the dispute involves services provided 
148.32 	to children and families eligible under the Individuals with Disabilities Education Act, 
148.33 	United States Code, title 20, section 1471 et seq. (Part C, Public Law 102-119 108-446). 
149.1 	(b) A dispute occurs when the school board and county board are unable to agree as 
149.2 	to who is responsible to coordinate, provide, pay for, or facilitate payment for services 
149.3 	from public and private sources.
149.4 	(c) Written and signed disputes must be filed with the local primary agency.
149.5 	(d) The local primary agency must attempt to resolve the matter with the involved 
149.6 	school board and county board and may request mediation from the commissioner of the 
149.7 	state lead agency for this purpose.
149.8 	(e) When interagency disputes have not been resolved within 30 calendar days, the 
149.9 	local primary agency must request the commissioner of the state lead agency to review 
149.10 	the matter with the commissioners of health and human services and make a decision. 
149.11 	The commissioner must provide a consistent process for reviewing those procedures. The 
149.12 	commissioners' decision is binding subject to the right of an aggrieved party to appeal to 
149.13 	the state Court of Appeals.
149.14 	(f) The local primary agency must ensure that eligible children and their families 
149.15 	receive early intervention services during resolution of a dispute. While a local dispute is 
149.16 	pending, the local primary agency must either assign financial responsibility to an agency 
149.17 	or pay for the service from the early intervention account under section 125A.35. If in 
149.18 	resolving the dispute, it is determined that the assignment of financial responsibility was 
149.19 	inappropriate, the responsibility for payment must be reassigned to the appropriate agency 
149.20 	and the responsible agency must make arrangements for reimbursing any expenditures 
149.21 	incurred by the agency originally assigned financial responsibility. 

149.22 	Sec. 14. Minnesota Statutes 2006, section 125B.15, is amended to read:
149.23 	125B.15 INTERNET ACCESS FOR STUDENTS.
149.24 	(a) Recognizing the difference between school libraries, school computer labs, and 
149.25 	school media centers, which serve unique educational purposes, and public libraries, 
149.26 	which are designed for public inquiry, all computers at a school site with access to the 
149.27 	Internet available for student use must be equipped to restrict, including by use of 
149.28 	available software filtering technology or other effective methods, all student access 
149.29 	to material that is reasonably believed to be obscene or child pornography or material 
149.30 	harmful to minors under federal or state law.
149.31 	(b) A school site is not required to purchase filtering technology if the school site 
149.32 	would incur more than incidental expense in making the purchase.
149.33 	(c) A school district receiving technology revenue under section 125B.25 125B.26
149.34 	must prohibit, including through use of available software filtering technology or other 
150.1 	effective methods, adult access to material that under federal or state law is reasonably 
150.2 	believed to be obscene or child pornography. 
150.3 	(d) A school district, its agents or employees, are immune from liability for failure 
150.4 	to comply with this section if they have made a good faith effort to comply with the 
150.5 	requirements of this section.
150.6 	(e) "School site" means an education site as defined in section 123B.04, subdivision 
150.7 	1, or charter school under section 124D.10. 

150.8 	Sec. 15. Minnesota Statutes 2006, section 126C.01, subdivision 9, is amended to read:
150.9 		Subd. 9.Training and experience index. "Training and experience index" 
150.10 	means a measure of a district's teacher training and experience relative to the education 
150.11 	and experience of teachers in the state. The measure must be determined pursuant to 
150.12 	Minnesota Statutes 1996, section 126C.11. 

150.13 	Sec. 16. Minnesota Statutes 2006, section 126C.05, subdivision 1, is amended to read:
150.14 		Subdivision 1.Pupil unit. Pupil units for each Minnesota resident pupil under the 
150.15 	age of 21 or who meets the requirements of section 120A.20, subdivision 1, paragraph 
150.16 	(c), in average daily membership enrolled in the district of residence, in another district 
150.17 	under sections 123A.05 to 123A.08, 124D.03, 124D.06, 124D.07,124D.08, or 124D.68; 
150.18 	in a charter school under section 124D.10; or for whom the resident district pays tuition 
150.19 	under section 123A.18, 123A.22, 123A.30, 123A.32, 123A.44, 123A.488, 123B.88, 
150.20 	subdivision 4, 124D.04, 124D.05, 125A.03 to 125A.24, 125A.51, or 125A.65, shall be 
150.21 	counted according to this subdivision. 
150.22 	(a) A prekindergarten pupil with a disability who is enrolled in a program approved 
150.23 	by the commissioner and has an individual education plan is counted as the ratio of the 
150.24 	number of hours of assessment and education service to 825 times 1.25 with a minimum 
150.25 	average daily membership of 0.28, but not more than 1.25 pupil units. 
150.26 	(b) A prekindergarten pupil who is assessed but determined not to be disabled is 
150.27 	counted as the ratio of the number of hours of assessment service to 825 times 1.25. 
150.28 	(c) A kindergarten pupil with a disability who is enrolled in a program approved 
150.29 	by the commissioner is counted as the ratio of the number of hours of assessment and 
150.30 	education services required in the fiscal year by the pupil's individual education program 
150.31 	plan to 875, but not more than one.
150.32 	(d) A kindergarten pupil who is not included in paragraph (c) is counted as .557 of a 
150.33 	pupil unit for fiscal year 2000 and thereafter.
151.1 	(e) A pupil who is in any of grades 1 to 3 is counted as 1.115 pupil units for fiscal 
151.2 	year 2000 and thereafter. 
151.3 	(f) A pupil who is any of grades 4 to 6 is counted as 1.06 pupil units for fiscal 
151.4 	year 1995 and thereafter. 
151.5 	(g) A pupil who is in any of grades 7 to 12 is counted as 1.3 pupil units.
151.6 	(h) A pupil who is in the postsecondary enrollment options program is counted 
151.7 	as 1.3 pupil units.

151.8 	Sec. 17. Minnesota Statutes 2006, section 126C.48, subdivision 7, is amended to read:
151.9 		Subd. 7.Reporting. For each tax settlement, the county auditor shall report 
151.10 	to each school district by fund, the district tax settlement revenue defined in section 
151.11 	123B.75, subdivision 5, paragraph (a), and the amount levied pursuant to section 126C.42, 
151.12 	subdivision 1, on the form specified in section 276.10. The county auditor shall send to 
151.13 	the district a copy of the spread levy report specified in section 275.124. 

151.14 	Sec. 18. Minnesota Statutes 2006, section 134.355, subdivision 9, is amended to read:
151.15 		Subd. 9.Telecommunications aid. An application for regional library 
151.16 	telecommunications aid must, at a minimum, contain information to document the 
151.17 	following:
151.18 	(1) the connections are adequate and employ an open network architecture that 
151.19 	will ensure interconnectivity and interoperability with school districts, postsecondary 
151.20 	education, or other governmental agencies;
151.21 	(2) that the connection is established through the most cost-effective means and that 
151.22 	the regional library has explored and coordinated connections through school districts, 
151.23 	postsecondary education, or other governmental agencies;
151.24 	(3) that the regional library system has filed an e-rate application; and
151.25 	(4) other information, as determined by the commissioner of children, families, and 
151.26 	learning education, to ensure that connections are coordinated, efficient, and cost-effective, 
151.27 	take advantage of discounts, and meet applicable state standards.
151.28 	The library system may include costs associated with cooperative arrangements with 
151.29 	postsecondary institutions, school districts, and other governmental agencies.

151.30 	Sec. 19.  REPEALER.
 151.31 	Minnesota Statutes 2006, sections 123A.22, subdivision 11; and 123B.81, 
151.32 	subdivision 8, are repealed.