1.1A bill for an act1.2relating to education; providing for policy and funding for early childhood, 1.3family, adult, and prekindergarten through grade 12 education including general 1.4education, education excellence, special programs, facilities and technology, 1.5nutrition and accounting, libraries, state agencies, pupil transportation standards, 1.6early childhood and adult programs; education forecast adjustments, and 1.7technical and conforming amendments; providing for task force and advisory 1.8groups; requiring reports; authorizing rulemaking; funding parenting centers; 1.9funding lead hazard reduction; appropriating money;amending Minnesota 1.10Statutes 2006, sections 16A.152, subdivision 2; 119A.50, by adding a 1.11subdivision; 119A.52; 119A.535; 120A.22, subdivision 7; 120B.021, subdivision 1.121; 120B.022, subdivision 1; 120B.12, subdivision 2; 120B.132; 120B.15; 1.13120B.30; 120B.31, subdivision 3; 120B.36, subdivision 1; 121A.17, subdivision 1.145; 122A.20, subdivision 1; 122A.415, by adding subdivisions; 122A.61, by 1.15adding a subdivision; 122A.628, subdivision 2; 122A.72, subdivision 5; 1.16123A.44; 123A.441; 123A.442; 123A.443; 123A.73, subdivision 8; 123B.02, 1.17by adding a subdivision; 123B.10, subdivision 1; 123B.143, subdivision 1; 1.18123B.53, subdivision 1; 123B.54; 123B.57, subdivision 3; 123B.63, subdivision 1.193; 123B.77, subdivision 4; 123B.79, subdivisions 6, 8, by adding a subdivision; 1.20123B.81, subdivisions 2, 4, 7; 123B.83, subdivision 2; 123B.88, subdivision 12; 1.21123B.90, subdivision 2; 123B.92, subdivisions 1, 3; 124D.095, subdivisions 2, 1.223, 4, 7; 124D.10, subdivisions 4, 23a, 24; 124D.111, subdivision 1; 124D.128, 1.23subdivisions 1, 2, 3; 124D.13, subdivisions 1, 2, 11, by adding a subdivision; 1.24124D.135, subdivisions 1, 3, 5, 6; 124D.15, subdivision 3; 124D.34, subdivision 1.257; 124D.454, subdivisions 2, 3; 124D.531, subdivisions 1, 4; 124D.65, 1.26subdivision 11; 124D.84, subdivision 1; 125A.11, subdivision 1; 125A.13; 1.27125A.14; 125A.39; 125A.42; 125A.44; 125A.45; 125A.63, by adding a 1.28subdivision; 125A.75, subdivisions 1, 4, by adding a subdivision; 125A.76, 1.29subdivisions 1, 2, 4, 5, by adding a subdivision; 125A.78; 125A.79, subdivisions 1.301, 5, 6, 8; 125B.15; 126C.01, subdivision 9; 126C.05, subdivision 1; 126C.10, 1.31subdivisions 1, 2, 2b, 13a, 24, 34, 35, 36; 126C.13, subdivision 4; 126C.15, 1.32subdivision 2; 126C.21, subdivisions 3, 5; 126C.41, by adding a subdivision; 1.33126C.44; 126C.48, subdivisions 2, 7; 127A.095, subdivision 2; 127A.441; 1.34127A.47, subdivision 7; 127A.49, subdivisions 2, 3; 128D.11, subdivision 3; 1.35134.31, by adding a subdivision; 134.355, subdivision 9; 169.01, by adding a 1.36subdivision; 169.443, by adding a subdivision; 169.447, subdivision 2; 169.4501, 1.37subdivisions 1, 2; 169.4502, subdivision 5; 169.4503, subdivisions 13, 20; 1.38171.02, subdivisions 2, 2a; 171.321, subdivision 4; 205A.05, subdivision 1; 1.39272.02, subdivision 64; 272.029, by adding a subdivision; 275.065, subdivisions 2.11, 1a; 517.08, subdivision 1c; Laws 2005, First Special Session chapter 5, article 2.21, sections 50, subdivision 2; 54, subdivisions 2, as amended, 4, 5, as amended, 2.36, as amended, 7, as amended, 8, as amended; article 2, sections 81, as amended; 2.484, subdivisions 2, as amended, 3, as amended, 4, as amended, 6, as amended, 2.510, as amended; article 3, section 18, subdivisions 2, as amended, 3, as amended, 2.64, as amended, 6, as amended; article 4, section 25, subdivisions 2, as amended, 2.73, as amended; article 5, section 17, subdivision 3, as amended; article 7, section 2.820, subdivisions 2, as amended, 3, as amended, 4, as amended; article 8, section 2.98, subdivisions 2, as amended, 5, as amended; article 9, section 4, subdivision 2; 2.10Laws 2006, chapter 263, article 3, section 15; Laws 2006, chapter 282, article 2, 2.11section 28, subdivision 4; article 3, section 4, subdivision 2; proposing coding for 2.12new law in Minnesota Statutes, chapters 119A; 121A; 124D; 127A; repealing 2.13Minnesota Statutes 2006, sections 120B.233; 121A.23; 123A.22, subdivision 11; 2.14123B.749; 123B.81, subdivision 8; 124D.06; 124D.081, subdivisions 1, 2, 3, 4, 2.155, 6, 9; 124D.175; 124D.454, subdivisions 4, 5, 6, 7; 124D.531, subdivision 5; 2.16124D.62; 125A.10; 125A.75, subdivision 6; 125A.76, subdivision 3; 126C.10, 2.17subdivisions 34, 35, 36; 169.4502, subdivision 15; 169.4503, subdivisions 17, 2.1818, 26.2.19BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:2.20ARTICLE 12.21GENERAL EDUCATION2.22    Section 1. Minnesota Statutes 2006, section 16A.152, subdivision 2, is amended to 2.23read:2.24    Subd. 2. Additional revenues; priority. (a) If on the basis of a forecast of general 2.25fund revenues and expenditures, the commissioner of finance determines that there will be 2.26a positive unrestricted budgetary general fund balance at the close of the biennium, the 2.27commissioner of finance must allocate money to the following accounts and purposes in 2.28priority 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 2.32reaches $653,000,000;2.33    (3) the amount necessary to increase the aid payment schedule for school district 2.34aids and credits payments in section 
         127A.45 to not more than 90 percent rounded to the 2.35nearest tenth of a percent without exceeding the amount available and with any remaining 2.36funds deposited in the budget reserve; and2.37    (4) the amount necessary to restore all or a portion of the net aid reductions under 2.38section 
         127A.441 and to reduce the property tax revenue recognition shift under section 2.39123B.75, subdivision 5
         , paragraph (c) (b), and Laws 2003, First Special Session chapter 2.409, article 5, section 34, as amended by Laws 2003, First Special Session chapter 23, 2.41section 20, by the same amount.3.1    (b) The amounts necessary to meet the requirements of this section are appropriated 3.2from the general fund within two weeks after the forecast is released or, in the case of 3.3transfers under paragraph (a), clauses (3) and (4), as necessary to meet the appropriations 3.4schedules otherwise established in statute.3.5    (c) To the extent that a positive unrestricted budgetary general fund balance is 3.6projected, appropriations under this section must be made before section 
         16A.1522 takes 3.7effect.3.8    (d) The commissioner of finance shall certify the total dollar amount of the 3.9reductions under paragraph (a), clauses (3) and (4), to the commissioner of education. The 3.10commissioner of education shall increase the aid payment percentage and reduce the 3.11property tax shift percentage by these amounts and apply those reductions to the current 3.12fiscal 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 3.15throughout the year on an extended year calendar, extended school day calendar, or 3.16both. A pupil may participate in the program and accelerate attainment of grade level 3.17requirements or graduation requirements. A learning year program may begin after the 3.18close of the regular school year in June. The program may be for students in one or more 3.19grade 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 3.22state must be a site. An area learning center must provide services to students who meet 3.23the criteria in section 124D.68 and who are enrolled in:3.24    (1) a district that is served by the center; or3.25    (2) a charter school located within the geographic boundaries of a district that is 3.26served by the center.3.27    (b) A school district or charter school may be approved biennially by the state to 3.28provide additional instructional programming that results in grade level acceleration. The 3.29program must be designed so that students make grade progress during the school year 3.30and graduate prior to the students' peers.3.31    (c) To be designated, a district, charter school, or center must demonstrate to the 3.32commissioner that it will:3.33    (1) provide a program of instruction that permits pupils to receive instruction 3.34throughout the entire year; and4.1    (2) develop and maintain a separate record system that, for purposes of section 4.2126C.05
         , permits identification of membership attributable to pupils participating in the 4.3program. The record system and identification must ensure that the program will not 4.4have the effect of increasing the total number of pupil unitsaverage daily membership 4.5attributable to an individual pupil as a result of a learning year program. The record 4.6system must include the date the pupil originally enrolled in a learning year program, the 4.7pupil's grade level, the date of each grade promotion, the average daily membership 4.8generated in each grade level, the number of credits or standards earned, and the number 4.9needed to graduate. 4.10    (b)(d) A student who has not completed a school district's graduation requirements 4.11may continue to enroll in courses the student must complete in order to graduate until 4.12the student satisfies the district's graduation requirements or the student is 21 years old, 4.13whichever 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 4.16inform all pupils and their parents about the learning year program and that participation 4.17in the program is optional. A continual learning plan must be developed at least annually 4.18for each pupil with the participation of the pupil, parent or guardian, teachers, and other 4.19staff; each participant must sign and date the plan. The plan must specify the learning 4.20experiences that must occur during the entire fiscal year and,are necessary for grade 4.21progression 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 4.23pupil plans to complete each year and, for a secondary pupil, the graduation requirements 4.24the 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; and4.27    (4) for pupils generating more than one average daily membership in a given grade, 4.28an indication of which objectives were unmet.4.29The plan may be modified to conform to district schedule changes. The district may 4.30not modify the plan if the modification would result in delaying the student's time of 4.31graduation.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 4.34age 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 5.2under sections 
         123A.05 to 
         123A.08, 
         124D.03, 
         124D.06, 
         124D.07, 
         124D.08, or 
         124D.68; 5.3in a charter school under section 
         124D.10; or for whom the resident district pays tuition 5.4under section 
         123A.18, 
         123A.22, 
         123A.30, 
         123A.32, 
         123A.44, 
         123A.488, 
         123B.88, 5.5subdivision 4
         , 
         124D.04, 
         124D.05, 
         125A.03 to 
         125A.24, 
         125A.51, or 
         125A.65, shall be 5.6counted according to this subdivision. 5.7    (a) A prekindergarten pupil with a disability who is enrolled in a program approved 5.8by the commissioner and has an individual education plan is counted as the ratio of the 5.9number of hours of assessment and education service to 825 times 
         1.25 with a minimum 5.10average 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 5.12counted 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 5.14by the commissioner is counted as the ratio of the number of hours of assessment and 5.15education services required in the fiscal year by the pupil's individual education program 5.16plan 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 5.18pupil unit for fiscal year 2000 and thereafter 0.627 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 5.20year 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 5.22year 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 5.25as 
         1.3 pupil units.5.26EFFECTIVE DATE.This section is effective for revenue for fiscal year 2009.5.27    Sec. 6. Minnesota Statutes 2006, section 126C.10, subdivision 1, is amended to read:5.28    Subdivision 1. General education revenue.(a) For fiscal year 2006 and later years 5.292007 and 2008, the general education revenue for each district equals the sum of the 5.30district's basic revenue, extended time revenue, gifted and talented revenue, basic skills 5.31revenue, training and experience revenue, secondary sparsity revenue, elementary sparsity 5.32revenue, transportation sparsity revenue, total operating capital revenue, equity revenue, 5.33alternative teacher compensation revenue under section 122A.415, and transition revenue.5.34    (b) For fiscal year 2009 and later, the general education revenue for each district 5.35equals the sum of the district's basic revenue, extended time revenue, gifted and talented 6.1revenue, basic skills revenue, training and experience revenue, secondary sparsity revenue, 6.2elementary sparsity revenue, transportation sparsity revenue, total operating capital 6.3revenue, equity revenue, and transition revenue.6.4    Sec. 7. Minnesota Statutes 2006, section 126C.10, subdivision 2, is amended to read:6.5    Subd. 2. Basic revenue. The basic revenue for each district equals the formula 6.6allowance times the adjusted marginal cost pupil units for the school year. The formula 6.7allowance for fiscal year 2005 is $4,601. The formula allowance for fiscal year 2006 is 6.8$4,783. The formula allowance for fiscal year 2007 is $4,974 and the formula allowance 6.9for fiscal year 2008 and subsequent years is $4,974 $5,075.6.10    Sec. 8. Minnesota Statutes 2006, section 126C.10, subdivision 2b, is amended to read:6.11    Subd. 2b. Gifted and talented revenue. Gifted and talented revenue for each 6.12district equals $4 times the district's adjusted marginal cost pupil units for fiscal year 2006 6.13and $9 for fiscal year 2007 and later that school year times $13 for fiscal year 2008 and 6.14later. A school district must reserve gifted and talented revenue and, consistent with 6.15section 
         120B.15, must spend the revenue only to:6.16    (1) identify gifted and talented students;6.17    (2) provide education programs for gifted and talented students; or6.18    (3) provide staff development to prepare teachers to best meet the unique needs 6.19of gifted and talented students.6.20EFFECTIVE DATE.This section is effective for revenue for fiscal year 2008.6.21    Sec. 9. Minnesota Statutes 2006, section 126C.10, subdivision 13a, is amended to read:6.22    Subd. 13a. Operating capital levy. To obtain operating capital revenue for fiscal 6.23year 2007 and later, a district may levy an amount not more than the product of its 6.24operating capital revenue for the fiscal year times the lesser of one or the ratio of its 6.25adjusted net tax capacity per adjusted marginal cost pupil unit to the operating capital 6.26equalizing factor. The operating capital equalizing factor equals $22,222 for fiscal year 6.272006, and $10,700 for fiscal year 2007 and later.6.28    Sec. 10. Minnesota Statutes 2006, section 126C.10, subdivision 24, is amended to read:6.29    Subd. 24. Equity revenue. (a) A school district qualifies for equity revenue if:6.30    (1) the school district's adjusted marginal cost pupil unit amount of basic revenue, 6.31supplemental revenue, transition revenue, and referendum revenue is less than the value of 7.1the school district at or immediately above the 95th percentile of school districts in its 7.2equity region for those revenue categories; and7.3    (2) the school district's administrative offices are not located in a city of the first 7.4class on July 1, 1999.7.5    (b) Equity revenue for a qualifying district that receives referendum revenue under 7.6section 
         126C.17, subdivision 4, equals the product of (1) the district's adjusted marginal 7.7cost pupil units for that year; times (2) the sum of (i) $13, plus (ii) $75, times the school 7.8district's equity index computed under subdivision 27.7.9    (c) Equity revenue for a qualifying district that does not receive referendum revenue 7.10under section 
         126C.17, subdivision 4, equals the product of the district's adjusted marginal 7.11cost pupil units for that year times $13.7.12    (d) A school district's equity revenue is increased by the greater of zero or an amount 7.13equal to the district's resident marginal cost pupil units times the difference between ten 7.14percent of the statewide average amount of referendum revenue per resident marginal cost 7.15pupil unit for that year and the district's referendum revenue per resident marginal cost 7.16pupil unit. A school district's revenue under this paragraph must not exceed $100,000 for 7.17that year.7.18    (e) A school district's equity revenue for a school district located in the metro equity 7.19region equals the amount computed in paragraphs (b), (c), and (d) multiplied by 
         1.25.7.20    (f) For fiscal year 2007 and later, notwithstanding paragraph (a), clause (2), a school 7.21district that has per pupil referendum revenue below the 95th percentile qualifies for 7.22additional equity revenue equal to $46 times its adjusted marginal cost pupil unit units.7.23    (g) A district that does not qualify for revenue under paragraph (f) qualifies for 7.24equity revenue equal to one-half of the per pupil allowance in paragraph (f) $46 times its 7.25adjusted marginal cost pupil units.7.26EFFECTIVE DATE.This section is effective for revenue for fiscal year 2008.7.27    Sec. 11. Minnesota Statutes 2006, section 126C.10, subdivision 34, is amended to read:7.28    Subd. 34. Basic alternative teacher compensation aid. (a) For fiscal year 2006, 7.29the basic alternative teacher compensation aid for a school district or an intermediate 7.30school district with a plan approved under section 122A.414, subdivision 2b, equals the 7.31alternative teacher compensation revenue under section 122A.415, subdivision 1. The 7.32basic alternative teacher compensation aid for a charter school with an approved plan 7.33under section 122A.414, subdivision 2b, equals $260 times the number of pupils enrolled 7.34in the school on October 1 of the previous school year, or on October 1 of the current 7.35fiscal year for a charter school in the first year of operation.8.1    (b) For fiscal yearyears 2007 and later 2008, the basic alternative teacher 8.2compensation aid for a school district with a plan approved under section 
         122A.414, 8.3subdivision 2b
         , equals 73.1 percent of the alternative teacher compensation revenue 8.4under section 
         122A.415, subdivision 1. The basic alternative teacher compensation aid 8.5for an intermediate school district or charter school with a plan approved under section 8.6122A.414, subdivisions 2a and 2b
         , if the recipient is a charter school, equals $260 times 8.7the number of pupils enrolled in the school on October 1 of the previous fiscal year, or on 8.8October 1 of the current fiscal year for a charter school in the first year of operation, times 8.9the ratio of the sum of the alternative teacher compensation aid and alternative teacher 8.10compensation levy for all participating school districts to the maximum alternative teacher 8.11compensation revenue for those districts under section 
         122A.415, subdivision 1.8.12    (c)(b) Notwithstanding paragraphs (a) and (b) and section 
         122A.415, subdivision 8.131
         , the state total basic alternative teacher compensation aid entitlement must not exceed 8.14$19,329,000 for fiscal year 2006 and $75,636,000 for fiscal year 2007 and later and 8.15$44,159,000 for fiscal year 2008. The commissioner must limit the amount of alternative 8.16teacher compensation aid approved under section 
         122A.415 so as not to exceed these 8.17limits.8.18    Sec. 12. Minnesota Statutes 2006, section 126C.10, subdivision 35, is amended to read:8.19    Subd. 35. Alternative teacher compensation levy. For fiscal yearyears 2007 8.20and later 2008, the alternative teacher compensation levy for a district receiving basic 8.21alternative teacher compensation aid equals the product of (1) the difference between the 8.22district's alternative teacher compensation revenue and the district's basic alternative 8.23teacher compensation aid times (2) the lesser of one or the ratio of the district's adjusted 8.24net tax capacity per adjusted pupil unit to $5,913.8.25    Sec. 13. Minnesota Statutes 2006, section 126C.10, subdivision 36, is amended to read:8.26    Subd. 36. Alternative teacher compensation aid. (a) For fiscal yearyears 2007 8.27and later 2008, a district's alternative teacher compensation equalization aid equals the 8.28district's alternative teacher compensation revenue minus the district's basic alternative 8.29teacher compensation aid minus the district's alternative teacher compensation levy. If a 8.30district does not levy the entire amount permitted, the alternative teacher compensation 8.31equalization aid must be reduced in proportion to the actual amount levied.8.32    (b) A district's alternative teacher compensation aid equals the sum of the 8.33district's basic alternative teacher compensation aid and the district's alternative teacher 8.34compensation equalization aid.9.1    Sec. 14. Minnesota Statutes 2006, section 126C.13, subdivision 4, is amended to read:9.2    Subd. 4. General education aid. (a) For fiscal year 2006, a district's general 9.3education aid is the sum of the following amounts:9.4    (1) general education revenue, excluding equity revenue, total operating capital, and 9.5transition revenue;9.6    (2) operating capital aid according to section 126C.10, subdivision 13b;9.7    (3) equity aid according to section 126C.10, subdivision 30;9.8    (4) transition aid according to section 126C.10, subdivision 33;9.9    (5) shared time aid according to section 126C.01, subdivision 7;9.10    (6) referendum aid according to section 126C.17; and9.11    (7) online learning aid according to section 124D.096.9.12    (b) For fiscal yearyears 2007 and later 2008, a district's general education aid is the 9.13sum of the following amounts:9.14    (1) general education revenue, excluding equity revenue, total operating capital 9.15revenue, alternative teacher compensation revenue, and transition revenue;9.16    (2) operating capital aid under section 
         126C.10, subdivision 13b;9.17    (3) equity aid under section 
         126C.10, subdivision 30;9.18    (4) alternative teacher compensation aid under section 
         126C.10, subdivision 36;9.19    (5) transition aid under section 
         126C.10, subdivision 33;9.20    (6) shared time aid under section 
         126C.01, subdivision 7;9.21    (7) referendum aid under section 
         126C.17, subdivisions 7 and 7a; and9.22    (8) online learning aid according to section 
         124D.096.9.23    (b) For fiscal year 2009 and later, a district's general education aid is the sum of 9.24the following amounts:9.25    (1) general education revenue, excluding equity revenue, total operating capital 9.26revenue, alternative teacher compensation revenue, and transition revenue;9.27    (2) operating capital aid under section 126C.10, subdivision 13b;9.28    (3) equity aid under section 126C.10, subdivision 30;9.29    (4) transition aid under section 126C.10, subdivision 33;9.30    (5) shared time aid under section 126C.01, subdivision 7;9.31    (6) referendum aid under section 126C.17, subdivisions 7 and 7a; and9.32    (7) online learning aid according to section 124D.096.9.33    Sec. 15. Minnesota Statutes 2006, section 126C.21, subdivision 3, is amended to read:9.34    Subd. 3. County apportionment deduction. Each year the amount of money 9.35apportioned to a district for that year pursuant to section sections127A.34, subdivision 2, 10.1and 272.029, subdivision 6, must be deducted from the general education aid earned by 10.2that district for the same year or from aid earned from other state sources. 10.3EFFECTIVE DATE.This section is effective for revenue for fiscal year 2009.10.4    Sec. 16. Minnesota Statutes 2006, section 126C.21, subdivision 5, is amended to read:10.5    Subd. 5. Adjustment for failure to meet federal maintenance of effort.(a) The 10.6general education aid paid to a school district or charter school that failed to meet federal 10.7special education maintenance of effort for the previous fiscal year must be reduced by the 10.8amount that must be paid to the federal government due to the shortfall. 10.9    (b) The general education aid paid to school districts that were members of a 10.10cooperative that failed to meet federal special education maintenance of effort must be 10.11reduced by the amount that must be paid to the federal government due to the shortfall. 10.12The commissioner must apportion the aid reduction amount to the member school districts 10.13based on each district's individual shortfall in maintaining effort, and on each member 10.14district's proportionate share of any shortfall in expenditures made by the cooperative. 10.15Each district's proportionate share of shortfall in expenditures made by the cooperative 10.16must be calculated using the adjusted marginal pupil units of each member school district.10.17    (c) The amounts recovered under this subdivision shall be paid to the federal 10.18government to meet the state's obligations resulting from the district's or, charter school's, 10.19or cooperative's failure to meet federal special education maintenance of effort.10.20EFFECTIVE DATE.This section is effective the day following final enactment.10.21    Sec. 17. Minnesota Statutes 2006, section 126C.44, is amended to read:10.22126C.44 SAFE SCHOOLS LEVY.10.23    (a) Each district may make a levy on all taxable property located within the district 10.24for the purposes specified in this section. The maximum amount which may be levied for 10.25all costs under this section shall be equal to $27 $30 multiplied by the district's adjusted 10.26marginal cost pupil units for the school year. The proceeds of the levy must be reserved 10.27and used for directly funding the following purposes or for reimbursing the cities and 10.28counties who contract with the district for the following purposes: (1) to pay the costs 10.29incurred for the salaries, benefits, and transportation costs of peace officers and sheriffs for 10.30liaison in services in the district's schools; (2) to pay the costs for a drug abuse prevention 10.31program as defined in section 
         609.101, subdivision 3, paragraph (e), in the elementary 10.32schools; (3) to pay the costs for a gang resistance education training curriculum in the 10.33district's schools; (4) to pay the costs for security in the district's schools and on school 11.1property; or (5) to pay the costs for other crime prevention, drug abuse, student and staff 11.2safety, voluntary opt-in suicide prevention tools, and violence prevention measures taken 11.3by the school district; or (6) to pay costs for licensed school counselors, licensed school 11.4nurses, licensed school social workers, licensed school psychologists, and licensed alcohol 11.5and chemical dependency counselors to help provide early responses to problems. For 11.6expenditures under clause (1), the district must initially attempt to contract for services to 11.7be provided by peace officers or sheriffs with the police department of each city or the 11.8sheriff's department of the county within the district containing the school receiving the 11.9services. If a local police department or a county sheriff's department does not wish 11.10to provide the necessary services, the district may contract for these services with any 11.11other police or sheriff's department located entirely or partially within the school district's 11.12boundaries. 11.13    (b) A school district that is a member of an intermediate school district may 11.14include in its authority under this section the costs associated with safe schools activities 11.15authorized under paragraph (a) for intermediate school district programs. This authority 11.16must not exceed $10 times the adjusted marginal cost pupil units of the member districts. 11.17This authority is in addition to any other authority authorized under this section. Revenue 11.18raised under this paragraph must be transferred to the intermediate school district.11.19    (c) If a school district spends safe schools levy proceeds under paragraph (a), clause 11.20(6), the district must annually certify that its total spending on services provided by the 11.21employees listed in paragraph (a), clause (6), is not less than the sum of its expenditures 11.22for these purposes in the previous year plus the amount spent under this section.11.23EFFECTIVE DATE.This section is effective for taxes payable in 2008.11.24    Sec. 18. Minnesota Statutes 2006, section 127A.441, is amended to read:11.25127A.441 AID REDUCTION; LEVY REVENUE RECOGNITION CHANGE.11.26    Each year, the state aids payable to any school district for that fiscal year that are 11.27recognized as revenue in the school district's general and community service funds shall 11.28be adjusted by an amount equal to (1) the amount the district recognized as revenue for the 11.29prior fiscal year pursuant to section 
         123B.75, subdivision 5, paragraph (b) or (c), minus (2) 11.30the amount the district recognized as revenue for the current fiscal year pursuant to section 11.31123B.75, subdivision 5
         , paragraph (c) (b). For purposes of making the aid adjustments 11.32under this section, the amount the district recognizes as revenue for either the prior fiscal 11.33year or the current fiscal year pursuant to section 
         123B.75, subdivision 5, paragraph (b) 11.34or (c), shall not include any amount levied pursuant to section 
         124D.86, subdivision 4, 12.1for school districts receiving revenue under sections 
         124D.86, subdivision 3, clauses (1), 12.2(2), and (3); 
         126C.41, subdivisions 1, 2, and 3, paragraphs (b), (c), and (d); 
         126C.43, 12.3subdivision 2
         ; 
         126C.457; and 
         126C.48, subdivision 6. Payment from the permanent 12.4school fund shall not be adjusted pursuant to this section. The school district shall be 12.5notified of the amount of the adjustment made to each payment pursuant to this section. 12.6    Sec. 19. Minnesota Statutes 2006, section 127A.47, subdivision 7, is amended to read:12.7    Subd. 7. Alternative attendance programs. The general education aid and special 12.8education aid for districts must be adjusted for each pupil attending a nonresident district 12.9under sections 
         123A.05 to 
         123A.08, 
         124D.03, 
         124D.06, 
         124D.08, and 
         124D.68. The 12.10adjustments must be made according to this subdivision.12.11    (a) General education aid paid to a resident district must be reduced by an amount 12.12equal to the referendum equalization aid attributable to the pupil in the resident district.12.13    (b) General education aid paid to a district serving a pupil in programs listed in this 12.14subdivision must be increased by an amount equal to the greater of (1) the referendum 12.15equalization aid attributable to the pupil in the nonresident district; or (2) the product of 12.16the district's open enrollment concentration index, the maximum amount of referendum 12.17revenue in the first tier, and the district's net open enrollment pupil units for that year. A 12.18district's open enrollment concentration index equals the greater of: (i) zero, or (ii) the 12.19lesser of 1.0, or the difference between the district's ratio of open enrollment pupil units 12.20served to its resident pupil units for that year and 0.2. This clause does not apply to a 12.21school district where more than 50 percent of the open enrollment students are enrolled 12.22solely in online learning courses.12.23    (c) If the amount of the reduction to be made from the general education aid of the 12.24resident district is greater than the amount of general education aid otherwise due the 12.25district, the excess reduction must be made from other state aids due the district.12.26    (d) For fiscal year 2006, the district of residence must pay tuition to a district or an 12.27area learning center, operated according to paragraph (f), providing special instruction and 12.28services to a pupil with a disability, as defined in section 
         125A.02, or a pupil, as defined in 12.29section 
         125A.51, who is enrolled in a program listed in this subdivision. The tuition must 12.30be equal to (1) the actual cost of providing special instruction and services to the pupil, 12.31including a proportionate amount for special transportation and unreimbursed building 12.32lease and debt service costs for facilities used primarily for special education, minus (2) 12.33if the pupil receives special instruction and services outside the regular classroom for 12.34more than 60 percent of the school day, the amount of general education revenue and 12.35referendum aid attributable to that pupil for the portion of time the pupil receives special 13.1instruction and services outside of the regular classroom, excluding portions attributable to 13.2district and school administration, district support services, operations and maintenance, 13.3capital expenditures, and pupil transportation, minus (3) special education aid attributable 13.4to that pupil, that is received by the district providing special instruction and services. For 13.5purposes of this paragraph, general education revenue and referendum aid attributable to a 13.6pupil must be calculated using the serving district's average general education revenue 13.7and referendum aid per adjusted pupil unit.13.8    (e) For fiscal year 2007 and later, special education aid paid to a resident district 13.9must be reduced by an amount equal to (1) the actual cost of providing special instruction 13.10and services, including special transportation and unreimbursed building lease and debt 13.11service costs for facilities used primarily for special education, for a pupil with a disability, 13.12as defined in section 
         125A.02, or a pupil, as defined in section 
         125A.51, who is enrolled 13.13in a program listed in this subdivision, minus (2) if the pupil receives special instruction 13.14and services outside the regular classroom for more than 60 percent of the school day, 13.15the amount of general education revenue and referendum aid attributable to that pupil 13.16for the portion of time the pupil receives special instruction and services outside of the 13.17regular classroom, excluding portions attributable to district and school administration, 13.18district support services, operations and maintenance, capital expenditures, and pupil 13.19transportation, minus (3) special education aid attributable to that pupil, that is received 13.20by the district providing special instruction and services. For purposes of this paragraph, 13.21general education revenue and referendum aid attributable to a pupil must be calculated 13.22using the serving district's average general education revenue and referendum aid per 13.23adjusted pupil unit. Special education aid paid to the district or cooperative providing 13.24special instruction and services for the pupil, or to the fiscal agent district for a cooperative, 13.25must be increased by the amount of the reduction in the aid paid to the resident district. If 13.26the resident district's special education aid is insufficient to make the full adjustment, the 13.27remaining adjustment shall be made to other state aids due to the district.13.28    (f) An area learning center operated by a service cooperative, intermediate district, 13.29education district, or a joint powers cooperative may elect through the action of the 13.30constituent boards to charge the resident district tuition for pupils rather than to have the 13.31general education revenue paid to a fiscal agent school district. Except as provided in 13.32paragraph (d) or (e), the district of residence must pay tuition equal to at least 90 percent 13.33of the district average general education revenue per pupil unit minus an amount equal to 13.34the product of the formula allowance according to section 
         126C.10, subdivision 2, times 13.35.0485, calculated without basic skills revenue and transportation sparsity revenue, times 14.1the number of pupil units for pupils attending the area learning center, plus the amount of 14.2compensatory revenue generated by pupils attending the area learning center.14.3EFFECTIVE DATE.This section is effective for revenue for fiscal year 2008.14.4    Sec. 20. Minnesota Statutes 2006, section 127A.49, subdivision 2, is amended to read:14.5    Subd. 2. Abatements. Whenever by virtue of chapter 278, sections 
         270C.86, 14.6375.192
         , or otherwise, the net tax capacity or referendum market value of any district for 14.7any taxable year is changed after the taxes for that year have been spread by the county 14.8auditor and the local tax rate as determined by the county auditor based upon the original 14.9net tax capacity is applied upon the changed net tax capacities, the county auditor shall, 14.10prior to February 1 of each year, certify to the commissioner of education the amount of 14.11any resulting net revenue loss that accrued to the district during the preceding year. Each 14.12year, the commissioner shall pay an abatement adjustment to the district in an amount 14.13calculated according to the provisions of this subdivision. This amount shall be deducted 14.14from the amount of the levy authorized by section 
         126C.46. The amount of the abatement 14.15adjustment must be the product of:14.16    (1) the net revenue loss as certified by the county auditor, times14.17    (2) the ratio of:14.18    (i) the sum of the amounts of the district's certified levy in the third preceding year 14.19according to the following:14.20    (A) section 
         123B.57, if the district received health and safety aid according to that 14.21section for the second preceding year;14.22    (B) section 
         124D.20, if the district received aid for community education programs 14.23according to that section for the second preceding year;14.24    (C) section 
         124D.135, subdivision 3, if the district received early childhood family 14.25education aid according to section 
         124D.135 for the second preceding year; and14.26    (D) section 
         126C.17, subdivision 6, if the district received referendum equalization 14.27aid according to that section for the second preceding year; 14.28    (E) section 126C.13, if the district received general education aid according to 14.29section 126C.13, subdivision 4, paragraph (b), clause (1), of that section in the second 14.30preceding year;14.31    (F) section 126C.10, subdivision 13a, if the district received operating capital aid 14.32according to section 126C.10, subdivision 13b, in the second preceding year;14.33    (G) section 126C.10, subdivision 29, if the district received equity aid according to 14.34section 126C.10, subdivision 30, in the second preceding year;15.1    (H) section 126C.10, subdivision 32, if the district received transition aid according 15.2to section 126C.10, subdivision 33, in the second preceding year;15.3    (I) section 123B.53, subdivision 5, if the district received debt service equalization 15.4aid according to section 123B.53, subdivision 6, in the second preceding year;15.5    (J) section 124D.22, subdivision 3, if the district received school-age care aid 15.6according to section 124D.22, subdivision 4, in the second preceding year;15.7    (K) section 123B.591, subdivision 3, if the district received deferred maintenance 15.8aid according to section 123B.591, subdivision 4, in the second preceding year; and15.9    (L) section 126C.10, subdivision 35, if the district received alternative teacher 15.10compensation equalization aid according to section 126C.10, subdivision 36, paragraph 15.11(a), in the second preceding year, or section 122A.415, subdivision 5, if the district 15.12received alternative compensation equalization aid according to section 122A.415, 15.13subdivision 6, in the second preceding year; to15.14    (ii) the total amount of the district's certified levy in the third preceding December, 15.15plus or minus auditor's adjustments.15.16    Sec. 21. Minnesota Statutes 2006, section 127A.49, subdivision 3, is amended to read:15.17    Subd. 3. Excess tax increment. (a) If a return of excess tax increment is made to a 15.18district pursuant to sections 
         469.176, subdivision 2, and 
         469.177, subdivision 9, or upon 15.19decertification of a tax increment district, the school district's aid and levy limitations 15.20must be adjusted for the fiscal year in which the excess tax increment is paid under the 15.21provisions of this subdivision.15.22    (b) An amount must be subtracted from the district's aid for the current fiscal year 15.23equal to the product of:15.24    (1) the amount of the payment of excess tax increment to the district, times15.25    (2) the ratio of:15.26    (i) the sum of the amounts of the district's certified levy for the fiscal year in which 15.27the excess tax increment is paid according to the following:15.28    (A) section 
         123B.57, if the district received health and safety aid according to that 15.29section for the second preceding year;15.30    (B) section 
         124D.20, if the district received aid for community education programs 15.31according to that section for the second preceding year;15.32    (C) section 
         124D.135, subdivision 3, if the district received early childhood family 15.33education aid according to section 
         124D.135 for the second preceding year; and15.34    (D) section 
         126C.17, subdivision 6, if the district received referendum equalization 15.35aid according to that section for the second preceding year; 16.1    (E) section 126C.13, if the district received general education aid according to 16.2section 126C.13, subdivision 4, paragraph (b), clause (1), of that section in the second 16.3preceding year;16.4    (F) section 126C.10, subdivision 13a, if the district received operating capital aid 16.5according to section 126C.10, subdivision 13b, in the second preceding year;16.6    (G) section 126C.10, subdivision 29, if the district received equity aid according to 16.7section 126C.10, subdivision 30, in the second preceding year;16.8    (H) section 126C.10, subdivision 32, if the district received transition aid according 16.9to section 126C.10, subdivision 33, in the second preceding year;16.10    (I) section 123B.53, subdivision 5, if the district received debt service equalization 16.11aid according to section 123B.53, subdivision 6, in the second preceding year;16.12    (J) section 124D.22, subdivision 3, if the district received school-age care aid 16.13according to section 124D.22, subdivision 4, in the second preceding year;16.14    (K) section 123B.591, subdivision 3, if the district received deferred maintenance 16.15aid according to section 123B.591, subdivision 4, in the second preceding year; and16.16    (L) section 126C.10, subdivision 35, if the district received alternative teacher 16.17compensation equalization aid according to section 126C.10, subdivision 36, paragraph 16.18(a), in the second preceding year, or section 122A.415, subdivision 5, if the district 16.19received alternative compensation equalization aid according to section 122A.415, 16.20subdivision 6, in the second preceding year; to16.21    (ii) the total amount of the district's certified levy for the fiscal year, plus or minus 16.22auditor's adjustments.16.23    (c) An amount must be subtracted from the school district's levy limitation for the 16.24next levy certified equal to the difference between:16.25    (1) the amount of the distribution of excess increment; and16.26    (2) the amount subtracted from aid pursuant to clause (a).16.27    If the aid and levy reductions required by this subdivision cannot be made to the aid 16.28for the fiscal year specified or to the levy specified, the reductions must be made from 16.29aid for subsequent fiscal years, and from subsequent levies. The school district must use 16.30the payment of excess tax increment to replace the aid and levy revenue reduced under 16.31this subdivision.16.32    (d) This subdivision applies only to the total amount of excess increments received 16.33by a district for a calendar year that exceeds $25,000.16.34    Sec. 22. Minnesota Statutes 2006, section 205A.05, subdivision 1, is amended to read:17.1    Subdivision 1. Questions. Special elections must be held for a school district on a 17.2question on which the voters are authorized by law to pass judgment. The school board 17.3may on its own motion call a special election to vote on any matter requiring approval of 17.4the voters of a district. Upon petition of 50 or more voters of the school district or five 17.5percent of the number of voters voting at the preceding regular school district general17.6election, whichever is greater, the school board shall by resolution call a special election 17.7to vote on any matter requiring approval of the voters of a district. A question is carried 17.8only with the majority in its favor required by law. The election officials for a special 17.9election are the same as for the most recent school district general election unless changed 17.10according to law. Otherwise, special elections must be conducted and the returns made 17.11in the manner provided for the school district general election. A special election may 17.12not be held during the 30 days before and the 30 days after the state primary, during the 17.1330 days before and the 40 days after the state general election. In addition, a special 17.14election may not be held during the 20 days before and the 20 days after any regularly 17.15scheduled election of a municipality wholly or partially within the school district. 17.16Notwithstanding any other law to the contrary, the time period in which a special election 17.17must be conducted under any other law may be extended by the school board to conform 17.18with the requirements of this subdivision.17.19EFFECTIVE DATE.This section is effective the day following final enactment 17.20and applies to petitions for special election submitted 30 days after that date and later.17.21    Sec. 23. Minnesota Statutes 2006, section 272.029, is amended by adding a subdivision 17.22to read:17.23    Subd. 6a.Report to commissioner of education.The county auditor, on the first 17.24Wednesday after such settlement, shall report to the commissioner the amount distributed 17.25to each school district under subdivision 6.17.26EFFECTIVE DATE.This section is effective July 1, 2008, for settlements made 17.27during fiscal year 2009.17.28    Sec. 24. Laws 2005, First Special Session chapter 5, article 1, section 50, subdivision 17.292, is amended to read:17.30    Subd. 2. Application process. Independent School Districts Nos. 11, 17.31Anoka-Hennepin; 279, Osseo; 281, Robbinsdale; 286, Brooklyn Center; 535, Rochester; 17.32and 833, South Washington may submit an application to the commissioner of education 17.33by August 15, 2005, for a plan to allocate compensatory revenue to school sites based 18.1on student performance. The application must include a written resolution approved by 18.2the school board that: (1) identifies the test results that will be used to assess student 18.3performance; (2) describes the method for distribution of compensatory revenue to the 18.4school sites; and (3) summarizes the evaluation procedure the district will use to determine 18.5if the redistribution of compensatory revenue improves overall student performance. The 18.6application must be submitted in the form and manner specified by the commissioner. The 18.7commissioner must notify the selected school districts by September 1, 2005 within 90 18.8days of receipt of their application.18.9EFFECTIVE DATE.This section is effective the day following final enactment.18.10    Sec. 25. Laws 2006, chapter 282, article 3, section 4, subdivision 2, is amended to read:18.11    Subd. 2. Onetime energy assistance aid. For onetime energy assistance aid under 18.12section 3:

18.1318.14$3,495,000.....2007 2006

18.15EFFECTIVE DATE.This section is effective the day following final enactment 18.16and applies retroactively to fiscal year 2006.18.17    Sec. 26. SCHOOL FINANCE REFORM; TASK FORCE ESTABLISHED.18.18    Subdivision 1.Task force established.A School Finance Reform Task Force 18.19is established.18.20    Subd. 2.Task force goals.The goals of the School Finance Reform Task Force 18.21include:18.22    (1) creating a standard and index to ensure that the formula remains adequate over 18.23time;18.24    (2) simplifying the remaining school formulas;18.25    (3) analyzing categorical funding formulas, including but not limited to pupil 18.26transportation, compensatory revenue, and limited English proficiency revenue;18.27    (4) establishing a schedule for implementation of the other new formulas; and18.28    (5) examining the role of the regional delivery structure including the functions 18.29performed by intermediate school districts, service cooperatives, education districts, and 18.30other cooperative organizations.18.31    Subd. 3.Task force members.The task force consists of nine members. 18.32Membership includes the commissioner of education, four members appointed according 19.1to the rules of the senate by the senate Committee on Rules and Administration 19.2Subcommittee on Committees, and four members appointed by the speaker of the house.19.3    Subd. 4.Task force recommendations.The task force must submit a report to the 19.4education committees of the legislature by January 15, 2008, describing the formula 19.5recommendations according to the goals it has established.19.6EFFECTIVE DATE.This section is effective the day following final enactment.19.7    Sec. 27. LIMITATION ON NEW ALTERNATIVE COMPENSATION SCHOOL 19.8DISTRICTS, FISCAL YEARS 2008-2011.19.9    Notwithstanding Minnesota Statutes, sections 122A.413; 122A.414; 122A.415; 19.10122A.416; and 126C.10, subdivisions 34, 35, and 36, the Department of Education must 19.11limit the participation in the alternative teacher pay program to those district sites and 19.12charter schools that received alternative compensation revenue in fiscal year 2007 or those 19.13district sites and charter schools that have an approved plan, under Minnesota Statutes, 19.14section 122A.414, by March 10, 2007, for fiscal year 2008 alternative compensation 19.15participation. This limitation applies to fiscal year 2008 through fiscal year 2011. No 19.16additional district sites or charter schools may be approved until after June 30, 2012.19.17    Sec. 28. FISCAL YEARS 2008 AND 2009 DECLINING PUPIL UNIT AID, 19.18RED LAKE.19.19    For fiscal years 2008 and 2009 only, Independent School District No. 38, Red Lake, 19.20is eligible for declining pupil unit aid equal to the greater of zero or the product of the 19.21basic formula allowance times the difference between the district's adjusted marginal cost 19.22pupil units for fiscal year 2005 and the district's adjusted marginal cost pupil units for that 19.23fiscal year times .75. Notwithstanding Minnesota Statutes, section 126C.13, the declining 19.24pupil unit aid must be included in calculating the district's general education aid.19.25    Sec. 29. APPROPRIATIONS.19.26    Subdivision 1.Department of Education.The sums indicated in this section are 19.27appropriated from the general fund to the Department of Education for the fiscal years 19.28designated.19.29    Subd. 2.General education aid.For general education aid under Minnesota 19.30Statutes, section 126C.13, subdivision 4:

19.31$5,465,539,000.....200819.32$5,467,878,000.....2009

20.1    The 2008 appropriation includes $531,733,000 for 2007 and $4,933,806,000 for 20.22008.20.3    The 2009 appropriation includes $548,200,000 for 2008 and $4,919,678,000 for 20.42009.20.5     The fiscal year 2009 appropriation includes $75,000,000 attributable to the education 20.6improvement account in the general fund.20.7    Subd. 3.Referendum tax base replacement aid.For referendum tax base 20.8replacement aid under Minnesota Statutes, section 126C.17, subdivision 7a:

20.9$870,000.....2008

20.10    The 2008 appropriation includes $870,000 for 2007 and $0 for 2008.20.11    Subd. 4.Enrollment options transportation.For transportation of pupils attending 20.12postsecondary institutions under Minnesota Statutes, section 124D.09, or for transportation 20.13of pupils attending nonresident districts under Minnesota Statutes, section 124D.03:

20.14$95,000.....200820.15$97,000.....2009

20.16    Subd. 5.Abatement revenue.For abatement aid under Minnesota Statutes, section 20.17127A.49:

20.18$1,343,000.....200820.19$1,347,000.....2009

20.20    The 2008 appropriation includes $76,000 for 2007 and $1,267,000 for 2008.20.21    The 2009 appropriation includes $140,000 for 2008 and $1,207,000 for 2009.20.22    Subd. 6.Consolidation transition.For districts consolidating under Minnesota 20.23Statutes, section 123A.485:

20.24$565,000.....200820.25$212,000.....2009

20.26    The 2008 appropriation includes $43,000 for 2007 and $522,000 for 2008.20.27    The 2009 appropriation includes $57,000 for 2008 and $155,000 for 2009.20.28    Subd. 7.Nonpublic pupil education aid.For nonpublic pupil education aid under 20.29Minnesota Statutes, sections 123B.40 to 123B.43, and 123B.87:

20.30$16,174,000.....200820.31$16,435,000.....2009

20.32    The 2008 appropriation includes $1,606,000 for 2007 and $14,568,000 for 2008.20.33    The 2009 appropriation includes $1,618,000 for 2008 and $14,817,000 for 2009.21.1    Subd. 8.Nonpublic pupil transportation.For nonpublic pupil transportation aid 21.2under Minnesota Statutes, section 123B.92, subdivision 9:

21.3$21,167,000.....200821.4$20,780,000.....2009

21.5    The 2008 appropriation includes $2,124,000 for 2007 and $19,043,000 for 2008.21.6    The 2009 appropriation includes $2,115,000 for 2008 and $18,665,000 for 2009.21.7    Subd. 9.One-room schoolhouse.For a grant to Independent School District No. 21.8690, Warroad, to operate the Angle Inlet School:

21.9$65,000.....200821.10$65,000.....2009

21.11    Subd. 10.Compensatory revenue pilot project.For grants for participation in the 21.12compensatory revenue pilot program under Laws 2005, First Special Session chapter 5, 21.13article 1, section 50:

21.14$2,175,000.....200821.15$2,175,000.....2009

21.16    Of this amount, $1,500,000 in each year is for a grant to Independent School District 21.17No. 11, Anoka-Hennepin; $210,000 in each year is for a grant to Independent School 21.18District No. 279, Osseo; $160,000 in each year is for a grant to Independent School 21.19District No. 281, Robbinsdale; $75,000 in each year is for a grant to Independent School 21.20District No. 286, Brooklyn Center; $165,000 in each year is for a grant to Independent 21.21School District No. 535, Rochester; and $65,000 in each year is for a grant to Independent 21.22School District No. 833, South Washington.21.23    If a grant to a specific school district is not awarded, the commissioner may increase 21.24the aid amounts to any of the remaining participating school districts.21.25    This appropriation is part of the base budget for subsequent fiscal years.21.26    Subd. 11.Declining pupil unit aid; Browns Valley.For declining pupil unit aid 21.27to Independent School District No. 801, Browns Valley:

21.28$ 100,000.....200821.29$ 100,000.....2009

21.30    This is a onetime appropriation.21.31    Subd. 12.Education finance study.For a contract to hire an independent contractor 21.32to assist the education finance task force:

21.33$75,000.....2008

22.1    This is a onetime appropriation.22.2    Subd. 13.Declining pupil aid, Red Lake.For a grant to Independent School 22.3District No. 38, Red Lake, for declining pupil aid:

22.4$455,000.....200822.5$50,000.....2009

22.6    Subd. 14.Declining pupil aid McGregor.For declining pupil aid for Independent 22.7School District No. 4, McGregor:

22.8$100,000.....2008

22.9    Any balance in the first year does not cancel but is available in the second year.22.10    Sec. 30. REVISOR'S INSTRUCTION.22.11    In Minnesota Statutes, the revisor of statutes shall correct any incorrect 22.12cross-references resulting from the repeal of Minnesota Statutes, section 124D.06.22.13    Sec. 31.  REPEALER.22.14(a) Minnesota Statutes 2006, section 124D.06, is repealed.22.15(b) Minnesota Statutes 2006, section 126C.10, subdivisions 34, 35, and 36, are 22.16repealed for revenue for fiscal year 2009 and later.22.17(c) Minnesota Statutes 2006, section 124D.081, subdivisions 1, 2, 3, 4, 5, 6, and 22.189, are repealed effective for revenue for fiscal year 2009.22.19ARTICLE 222.20EDUCATION EXCELLENCE22.21    Section 1. Minnesota Statutes 2006, section 119A.50, is amended by adding a 22.22subdivision to read:22.23    Subd. 3.Early childhood literacy programs.(a) A research-based early childhood 22.24literacy program premised on actively involved parents, ongoing professional staff 22.25development, and high quality early literacy program standards is established to increase 22.26the literacy skills of children participating in Head Start to prepare them to be successful 22.27readers and to increase families' participation in providing early literacy experiences to 22.28their children. Program providers must:22.29    (1) work to prepare children to be successful learners;22.30    (2) work to close the achievement gap for at-risk children;23.1    (3) use an integrated approach to early literacy that daily offers a literacy-rich 23.2classroom learning environment composed of books, writing materials, writing centers, 23.3labels, rhyming, and other related literacy materials and opportunities;23.4    (4) support children's home language while helping the children master English and 23.5use multiple literacy strategies to provide a cultural bridge between home and school;23.6    (5) use literacy mentors, ongoing literacy groups, and other teachers and staff to 23.7provide appropriate, extensive professional development opportunities in early literacy 23.8and classroom strategies for preschool teachers and other preschool staff;23.9    (6) use ongoing data-based assessments that enable preschool teachers to understand, 23.10plan, and implement literacy strategies, activities, and curriculum that meet children's 23.11literacy needs and continuously improve children's literacy; and23.12    (7) foster participation by parents, community stakeholders, literacy advisors, and 23.13evaluation specialists. 23.14Program providers are encouraged to collaborate with qualified, community-based 23.15early childhood providers in implementing this program and to seek nonstate funds to 23.16supplement the program.23.17    (b) Program providers under paragraph (a) interested in extending literacy programs 23.18to children in kindergarten through grade 3 may elect to form a partnership with an 23.19eligible organization under section 124D.38, subdivision 2, or 124D.42, subdivision 6, 23.20clause (3), schools enrolling children in kindergarten through grade 3, and other interested 23.21and qualified community-based entities to provide ongoing literacy programs that offer 23.22seamless literacy instruction focused on closing the literacy achievement gap. To close the 23.23literacy achievement gap by the end of third grade, partnership members must agree to use 23.24best efforts and practices and to work collaboratively to implement a seamless literacy 23.25model from age three to grade 3, consistent with paragraph (a). Literacy programs under 23.26this paragraph must collect and use literacy data to:23.27    (1) evaluate children's literacy skills; and23.28    (2) formulate specific intervention strategies to provide reading instruction to 23.29children premised on the outcomes of formative and summative assessments and 23.30research-based indicators of literacy development.23.31    The literacy programs under this paragraph also must train teachers and other 23.32providers working with children to use the assessment outcomes under clause (2) to 23.33develop and use effective, long-term literacy coaching models that are specific to the 23.34program providers.23.35    (c) The commissioner must collect and evaluate literacy data on children from age 23.36three to grade 3 who participate in literacy programs under this section to determine the 24.1efficacy of early literacy programs on children's success in developing the literacy skills 24.2that they need for long-term academic success and the programs' success in closing the 24.3literacy achievement gap. Annually by February 1, the commissioner must report to 24.4the education policy and finance committees of the legislature on the ongoing impact 24.5of these programs.24.6EFFECTIVE DATE.This section is effective the day following final enactment.24.7    Sec. 2. Minnesota Statutes 2006, section 120A.22, subdivision 7, is amended to read:24.8    Subd. 7. Education records. (a) A district, a charter school, or a nonpublic school 24.9that receives services or aid under sections 123B.40 to 123B.48 from which a student is 24.10transferring must transmit the student's educational records, within ten business days of a 24.11request, to the district, the charter school, or the nonpublic school in which the student is 24.12enrolling. Districts, charter schools, and nonpublic schools that receive services or aid 24.13under sections 123B.40 to 123B.48 must make reasonable efforts to determine the district, 24.14the charter school, or the nonpublic school in which a transferring student is next enrolling 24.15in order to comply with this subdivision.24.16    (b) A closed charter school must transfer the student's educational records, within 24.17ten business days of the school's closure, to the student's school district of residence 24.18where the records must be retained unless the records are otherwise transferred under 24.19this subdivision.24.20    (c) A school district, a charter school, or a nonpublic school that receives services 24.21or aid under sections 123B.40 to 123B.48 that transmits a student's educational records 24.22to another school district or other educational entity, charter school, or nonpublic school24.23to which the student is transferring must include in the transmitted records information 24.24about any formal suspension, expulsion, and exclusion disciplinary action taken as a 24.25result of any incident in which the student possessed or used a dangerous weapon under 24.26sections 121A.40 to 121A.56. The district, the charter school, or the nonpublic school 24.27that receives services or aid under sections 123B.40 to 123B.48 must provide notice to 24.28a student and the student's parent or guardian that formal disciplinary records will be 24.29transferred as part of the student's educational record, in accordance with data practices 24.30under chapter 13 and the Family Educational Rights and Privacy Act of 1974, United 24.31States Code, title 20, section 1232(g).24.32    (c) (d) Notwithstanding section 
         138.17, a principal or chief administrative officer 24.33must remove from a student's educational record and destroy a probable cause notice 24.34received under section 
         260B.171, subdivision 5, or paragraph (d), if one year has elapsed 24.35since the date of the notice and the principal or chief administrative officer has not 25.1received a disposition or court order related to the offense described in the notice. This 25.2paragraph does not apply if the student no longer attends the school when this one-year 25.3period expires. 25.4    (d) (e) A principal or chief administrative officer who receives a probable cause 25.5notice under section 
         260B.171, subdivision 5, or a disposition or court order, must include 25.6a copy of that data in the student's educational records if they are transmitted to another 25.7school, unless the data are required to be destroyed under paragraph (c) or section 
         121A.75. 25.8    Sec. 3. Minnesota Statutes 2006, section 120B.021, subdivision 1, is amended to read:25.9    Subdivision 1. Required academic standards. The following subject areas are 25.10required for statewide accountability:25.11    (1) language arts;25.12    (2) mathematics;25.13    (3) science;25.14    (4) social studies, including history, geography, economics, and government and 25.15citizenship;25.16    (5) health and physical education, for which locally developed academic standards 25.17apply; and25.18    (6) the arts, for which statewide or locally developed academic standards apply, as 25.19determined by the school district. Public elementary and middle schools must offer at least 25.20three and require at least two of the following four arts areas: dance; music; theater; and 25.21visual arts. Public high schools must offer at least three and require at least one of the 25.22following five arts areas: media arts; dance; music; theater; and visual arts.25.23    The commissioner must submit proposed standards in science and social studies to 25.24the legislature by February 1, 2004.25.25For purposes of applicable federal law, the academic standards for language arts, 25.26mathematics, and science apply to all public school students, except the very few students 25.27with extreme cognitive or physical impairments for whom an individualized education 25.28plan team has determined that the required academic standards are inappropriate. 25.29An individualized education plan team that makes this determination must establish 25.30alternative standards.25.31    A school district, no later than the 2007-2008 school year, must adopt graduation 25.32requirements that meet or exceed state graduation requirements established in law or 25.33rule. A school district that incorporates these state graduation requirements before the 25.342007-2008 school year must provide students who enter the 9th grade in or before 25.35the 2003-2004 school year the opportunity to earn a diploma based on existing locally 26.1established graduation requirements in effect when the students entered the 9th grade. 26.2District efforts to develop, implement, or improve instruction or curriculum as a result 26.3of the provisions of this section must be consistent with sections 
         120B.10, 
         120B.11, 26.4and 
         120B.20. 26.5    The commissioner must include the contributions of Minnesota American Indian 26.6tribes and communities as they relate to the academic standards during the review and 26.7revision of the required academic standards.26.8EFFECTIVE DATE.This section is effective for the 2008-2009 school year and 26.9later.26.10    Sec. 4. Minnesota Statutes 2006, section 120B.022, subdivision 1, is amended to read:26.11    Subdivision 1. Elective standards.(a) A district must establish its own standards in 26.12the following subject areas:26.13    (1) vocational and technical education; and26.14    (2) world languages.26.15    A school district must offer courses in all elective subject areas.26.16    (b) World languages teachers and other school staff should develop and implement 26.17world languages programs that acknowledge and reinforce the language proficiency and 26.18cultural awareness that non-English language speakers already possess, and encourage 26.19students' proficiency in multiple world languages. Programs under this paragraph must 26.20encompass indigenous American Indian languages and cultures, among other world 26.21languages and cultures. The department shall consult with postsecondary institutions in 26.22developing related professional development opportunities.26.23    Sec. 5. Minnesota Statutes 2006, section 120B.12, subdivision 2, is amended to read:26.24    Subd. 2. Identification. For the 2002-2003 school year and later, each school 26.25district shall identify before the end of first grade students who are at risk of not 26.26learning to read before the end of second grade. The district must use a locally adopted 26.27assessment method. The district must annually report the results of the assessment to the 26.28commissioner by June 1.26.29    Sec. 6. Minnesota Statutes 2006, section 120B.132, is amended to read:26.30120B.132 RAISED ACADEMIC ACHIEVEMENT; ADVANCED 26.31PLACEMENT AND INTERNATIONAL BACCALAUREATE PROGRAMS.27.1    Subdivision 1. Establishment; eligibility. A program is established to raise 27.2kindergarten through grade 12 academic achievement through increased student 27.3participation in preadvanced placement and, advanced placement, and international 27.4baccalaureate programs, consistent with section 120B.13. Schools and charter schools 27.5eligible to participate under this section: 27.6    (1) must have a three-year plan approved by the local school board to establish a new 27.7international baccalaureate program leading to international baccalaureate authorization, 27.8expand an existing program that leads to international baccalaureate authorization, or 27.9expand an existing authorized international baccalaureate program; or27.10    (2) must have a three-year plan approved by the local school board to create a new or 27.11expand an existing program to implement the college board advanced placement courses 27.12and exams or preadvanced placement courses initiative; and 27.13    (2) (3) must propose to further raise students' academic achievement by: 27.14    (i) increasing the availability of and all students' access to advanced placement or 27.15international baccalaureate courses or programs; 27.16    (ii) expanding the breadth of advanced placement or international baccalaureate 27.17courses or programs that are available to students; 27.18    (iii) increasing the number and the diversity of the students who participate in 27.19advanced placement or international baccalaureate courses or programs and succeed; 27.20    (iv) providing low-income and other disadvantaged students with increased access 27.21to advanced placement or international baccalaureate courses and programs; or 27.22    (v) increasing the number of high school students, including low-income and other 27.23disadvantaged students, who receive college credit by successfully completing advanced 27.24placement or international baccalaureate courses or programs and achieving satisfactory 27.25scores on related exams.27.26    Subd. 2. Application and review process; funding priority. (a) Charter schools 27.27and school districts in which eligible schools under subdivision 1 are located may 27.28apply to the commissioner, in the form and manner the commissioner determines, for 27.29competitive funding to further raise students' academic achievement. The application must 27.30detail the specific efforts the applicant intends to undertake in further raising students' 27.31academic achievement, consistent with subdivision 1, and a proposed budget detailing 27.32the district or charter school's current and proposed expenditures for advanced placement 27.33or, preadvanced placement, and international baccalaureate courses and programs. The 27.34proposed budget must demonstrate that the applicant's efforts will supplement but not 27.35supplant any expenditures for advanced placement and preadvanced placement courses and 27.36programs the applicant currently makes available to students support implementation of 28.1advanced placement, preadvanced placement, and international baccalaureate courses and 28.2programs. Expenditures for administration must not exceed five percent of the proposed 28.3budget. The commissioner may require an applicant to provide additional information.28.4    (b) When reviewing applications, the commissioner must determine whether 28.5the applicant satisfied all the requirements in this subdivision and subdivision 1. 28.6The commissioner may give funding priority to an otherwise qualified applicant that 28.7demonstrates:28.8    (1) a focus on developing or expanding preadvanced placement, advanced 28.9placement, or international baccalaureate courses and or programs or increasing students' 28.10participation in, access to, or success with the courses or programs, including the 28.11participation, access, or success of low-income and other disadvantaged students;28.12    (2) a compelling need for access to preadvanced placement, advanced placement, or 28.13international baccalaureate courses or programs;28.14    (3) an effective ability to actively involve local business and community 28.15organizations in student activities that are integral to preadvanced placement, advanced 28.16placement, or international baccalaureate courses and or programs; 28.17    (4) access to additional public or nonpublic funds or in-kind contributions that are 28.18available for preadvanced placement, advanced placement, or international baccalaureate 28.19courses or programs; or28.20    (5) an intent to implement activities that target low-income and other disadvantaged 28.21students.28.22    Subd. 3. Funding; permissible funding uses. (a) The commissioner shall award 28.23grants to applicant school districts and charter schools that meet the requirements of 28.24subdivisions 1 and 2. The commissioner must award grants on an equitable geographical 28.25basis to the extent feasible and consistent with this section. Grant awards must not exceed 28.26the lesser of:28.27    (1) $85 times the number of pupils enrolled at the participating sites on October 28.281 of the previous fiscal year; or28.29    (2) the approved supplemental expenditures based on the budget submitted under 28.30subdivision 2. For charter schools in their first year of operation, the maximum grant28.31funding award must be calculated using the number of pupils enrolled on October 1 of 28.32the current fiscal year. The commissioner may adjust the maximum grant funding award 28.33computed using prior year data for changes in enrollment attributable to school closings, 28.34school openings, grade level reconfigurations, or school district reorganizations between 28.35the prior fiscal year and the current fiscal year.29.1    (b) School districts and charter schools that submit an application and receive 29.2funding under this section must use the funding, consistent with the application, to:29.3    (1) provide teacher training and instruction to more effectively serve students, 29.4including low-income and other disadvantaged students, who participate in preadvanced 29.5andplacement, advanced placement, or international baccalaureate courses or programs;29.6    (2) further develop preadvanced placement, advanced placement, or international 29.7baccalaureate courses or programs;29.8    (3) improve the transition between grade levels to better prepare students, including 29.9low-income and other disadvantaged students, for succeeding in preadvanced placement, 29.10advanced placement, or international baccalaureate courses or programs;29.11    (4) purchase books and supplies;29.12    (5) pay course or program fees;29.13    (6) increase students' participation in and success with preadvanced placement, 29.14advanced placement, or international baccalaureate courses or programs;29.15    (7) expand students' access to preadvanced placement or, advanced placement, or 29.16international baccalaureate courses or programs through online learning;29.17    (8) hire appropriately licensed personnel to teach additional advanced placement 29.18or international baccalaureate courses or programs; or29.19    (9) engage in other activity directly related to expanding students' access to, 29.20participation in, and success with preadvanced placement or, advanced placement, or 29.21international baccalaureate courses and or programs, including low-income and other 29.22disadvantaged students.29.23    Subd. 4. Annual reports. (a) Each school district and charter school that receives 29.24a grant under this section annually must collect demographic and other student data to 29.25demonstrate and measure the extent to which the district or charter school raised students' 29.26academic achievement under this program and must report the data to the commissioner 29.27in the form and manner the commissioner determines. The commissioner annually by 29.28February 15 must make summary data about this program available to the education 29.29policy and finance committees of the legislature.29.30    (b) Each school district and charter school that receives a grant under this section 29.31annually must report to the commissioner, consistent with the Uniform Financial 29.32Accounting and Reporting Standards, its actual expenditures for advanced placement and,29.33preadvanced placement, and international baccalaureate courses and programs. The report 29.34must demonstrate that the school district or charter school has maintained its effort from 29.35other sources for advanced placement and, preadvanced placement, and international 30.1baccalaureate courses and programs compared with the previous fiscal year, and the 30.2district or charter school has expended all grant funds, consistent with its approved budget.30.3EFFECTIVE DATE.This section is effective the day following final enactment 30.4and applies to the 2007-2008 school year and later.30.5    Sec. 7. Minnesota Statutes 2006, section 120B.15, is amended to read:30.6120B.15 GIFTED AND TALENTED STUDENTS PROGRAMS.30.7    (a) School districts may identify students, locally develop programs, provide 30.8staff development, and evaluate programs to provide gifted and talented students with 30.9challenging educational programs.30.10    (b) School districts may adopt guidelines for assessing and identifying students for 30.11participation in gifted and talented programs. The guidelines should include the use of:30.12    (1) multiple and objective criteria; and30.13    (2) assessments and procedures that are valid and reliable, fair, and based on current 30.14theory and research.30.15    (c) School districts must adopt procedures for the academic acceleration of gifted 30.16and talented students. These procedures must include how the district will:30.17    (1) assess a student's readiness and motivation for acceleration; and30.18    (2) match the level, complexity, and pace of the curriculum to a student to achieve 30.19the best type of academic acceleration for that student.30.20    Sec. 8. Minnesota Statutes 2006, section 120B.30, is amended to read:30.21120B.30 STATEWIDE TESTING AND REPORTING SYSTEM.30.22    Subdivision 1. Statewide testing. (a) The commissioner, with advice from experts 30.23with appropriate technical qualifications and experience and stakeholders, consistent with 30.24subdivision 1a, shall include in the comprehensive assessment system, for each grade 30.25level to be tested, state-constructed tests developed from and aligned with the state's 30.26required academic standards under section 
         120B.021 and administered annually to all 30.27students in grades 3 through 8 and at the high school level. A state-developed test in a 30.28subject other than writing, developed after the 2002-2003 school year, must include both 30.29machine-scoreable and constructed response questions. The commissioner shall establish 30.30one or more months during which schools shall administer the tests to students each 30.31school year. For students enrolled in grade 8 before the 2005-2006 school year, only 30.32Minnesota basic skills tests in reading, mathematics, and writing shall fulfill students' 31.1basic skills testing requirements for a passing state notation. The passing scores of the 31.2state basic skills tests in reading and mathematics are the equivalent of:31.3    (1) 70 percent correct for students entering grade 9 in 1996; and31.4    (2) 75 percent correct for students entering grade 9 in 1997 and thereafter, as based 31.5on the first uniform test administration of February 1998.31.6    (b) For students enrolled in grade 8 in the 2005-2006 school year and later, only 31.7the Minnesota Comprehensive Assessments Second Edition (MCA-IIs) in reading, 31.8mathematics, and writing following options shall fulfill students' academic standard state 31.9graduation test requirements.:31.10    (1) for reading and mathematics:31.11    (i) obtaining an achievement level equivalent to or greater than proficient as 31.12determined through a standard setting process on the Minnesota comprehensive 31.13assessments in grade 10 for reading and grade 11 for mathematics or achieving a passing 31.14score as determined through a standard setting process on the graduation-required 31.15assessment for diploma in grade 10 for reading and grade 11 for mathematics or 31.16subsequent retests;31.17    (ii) achieving a passing score as determined through a standard setting process on the 31.18state-identified language proficiency test in reading and the mathematics test for English 31.19language learners or the graduation-required assessment for diploma equivalent of those 31.20assessments for students designated as English language learners;31.21    (iii) achieving an individual passing score on the graduation-required assessment 31.22for diploma as determined by appropriate state guidelines for students with an individual 31.23education plan or 504 plan;31.24    (iv) obtaining achievement level equivalent to or greater than proficient as 31.25determined through a standard setting process on the state-identified alternate assessment 31.26or assessments in grade 10 for reading and grade 11 for mathematics for students with 31.27an individual education plan; or31.28    (v) achieving an individual passing score on the state-identified alternate assessment 31.29or assessments as determined by appropriate state guidelines for students with an 31.30individual education plan; and31.31    (2) for writing:31.32    (i) achieving a passing score on the graduation-required assessment for diploma;31.33    (ii) achieving a passing score as determined through a standard setting process on 31.34the state-identified language proficiency test in writing for students designated as English 31.35language learners;32.1    (iii) achieving an individual passing score on the graduation-required assessment 32.2for diploma as determined by appropriate state guidelines for students with an individual 32.3education plan or 504 plan; or32.4    (iv) achieving an individual passing score on the state-identified alternate assessment 32.5or assessments as determined by appropriate state guidelines for students with an 32.6individual education plan.32.7    (b) (c) The third 3rd through 8th grade and high school level test results shall 32.8be available to districts for diagnostic purposes affecting student learning and district 32.9instruction and curriculum, and for establishing educational accountability. The 32.10commissioner must disseminate to the public the test results upon receiving those results.32.11    (c) (d) State tests must be constructed and aligned with state academic standards. The 32.12testing process and the order of administration shall be determined by the commissioner. 32.13The statewide results shall be aggregated at the site and district level, consistent with 32.14subdivision 1a.32.15    (d) (e) In addition to the testing and reporting requirements under this section, the 32.16commissioner shall include the following components in the statewide public reporting 32.17system:32.18    (1) uniform statewide testing of all students in grades 3 through 8 and at the high 32.19school level that provides appropriate, technically sound accommodations, alternate 32.20assessments, or exemptions consistent with applicable federal law, only with parent or 32.21guardian approval, for those very few students for whom the student's individual education 32.22plan team under sections 
         125A.05 and 
         125A.06, determines that the general statewide 32.23test is inappropriate for a student is incapable of taking a statewide test, or for a limited 32.24English proficiency student under section 
         124D.59, subdivision 2, if the student has been 32.25in the United States for fewer than three years;32.26    (2) educational indicators that can be aggregated and compared across school 32.27districts and across time on a statewide basis, including average daily attendance, high 32.28school graduation rates, and high school drop-out rates by age and grade level;32.29    (3) students' scores state results on the American College Test; and32.30    (4) state results from participation in the National Assessment of Educational 32.31Progress so that the state can benchmark its performance against the nation and other 32.32states, and, where possible, against other countries, and contribute to the national effort 32.33to monitor achievement.32.34    (e) Districts must report exemptions under paragraph (d), clause (1), to the 32.35commissioner consistent with a format provided by the commissioner.33.1    Subd. 1a. Statewide and local assessments; results. (a) The commissioner must 33.2develop reading, mathematics, and science assessments aligned with state academic 33.3standards that districts and sites must use to monitor student growth toward achieving 33.4those standards. The commissioner must not develop statewide assessments for academic 33.5standards in social studies, health and physical education, and the arts. The commissioner 33.6must require:33.7    (1) annual reading and mathematics assessments in grades 3 through 8 and at the 33.8high school level for the 2005-2006 school year and later; and33.9    (2) annual science assessments in one grade in the grades 3 through 5 span, the 33.10grades 6 through 9 span, and a life sciences assessment in the grades 10 through 12 span 33.11for the 2007-2008 school year and later.33.12    (b) The commissioner must ensure that all statewide tests administered to elementary 33.13and secondary students measure students' academic knowledge and skills and not students' 33.14values, attitudes, and beliefs.33.15    (c) Reporting of assessment results must:33.16    (1) provide timely, useful, and understandable information on the performance of 33.17individual students, schools, school districts, and the state;33.18    (2) include, by the 2006-2007no later than the 2008-2009 school year, a value-added 33.19component tothat is in addition to a measure for student achievement growth over time; 33.20and33.21    (3)(i) for students enrolled in grade 8 before the 2005-2006 school year, determine 33.22whether students have met the state's basic skills requirements; and33.23    (ii) for students enrolled in grade 8 in the 2005-2006 school year and later, determine 33.24whether students have met the state's academic standards.33.25    (d) Consistent with applicable federal law and subdivision 1, paragraph (d), clause 33.26(1), the commissioner must include appropriate, technically sound accommodations or33.27alternative assessments for the very few students with disabilities for whom statewide 33.28assessments are inappropriate and for students with limited English proficiency.33.29    (e) A school, school district, and charter school must administer statewide 33.30assessments under this section, as the assessments become available, to evaluate student 33.31progress in achieving the academic standards. If a state assessment is not available, a 33.32school, school district, and charter school must determine locally if a student has met 33.33the required academic standards. A school, school district, or charter school may use a 33.34student's performance on a statewide assessment as one of multiple criteria to determine 33.35grade promotion or retention. A school, school district, or charter school may use a high 34.1school student's performance on a statewide assessment as a percentage of the student's 34.2final grade in a course, or place a student's assessment score on the student's transcript.34.3    Subd. 2. Department of Education assistance. The Department of Education 34.4shall contract for professional and technical services according to competitive bidding 34.5procedures under chapter 16C for purposes of this section.34.6    Subd. 3. Reporting. The commissioner shall report test data publicly and to 34.7stakeholders, including the three performance baselines performance achievement levels34.8developed from students' unweighted mean test scores in each tested subject and a listing of 34.9demographic factors that strongly correlate with student performance. The commissioner 34.10shall also report data that compares performance results among school sites, school 34.11districts, Minnesota and other states, and Minnesota and other nations. The commissioner 34.12shall disseminate to schools and school districts a more comprehensive report containing 34.13testing information that meets local needs for evaluating instruction and curriculum.34.14    Subd. 4. Access to tests. The commissioner must adopt and publish a policy 34.15to provide public and parental access for review of basic skills tests, Minnesota 34.16Comprehensive Assessments, or any other such statewide test and assessment. Upon 34.17receiving a written request, the commissioner must make available to parents or guardians 34.18a copy of their student's actual answer sheet responses to the test questions to be reviewed 34.19by the parent.34.20    Sec. 9. Minnesota Statutes 2006, section 120B.31, subdivision 3, is amended to read:34.21    Subd. 3. Educational accountability. (a) The Independent Office of Educational 34.22Accountability, as authorized by Laws 1997, First Special Session chapter 4, article 5, 34.23section 28, subdivision 2, is established, and shall be funded through the Board of Regents 34.24of the University of Minnesota. The office shall advise the education committees of 34.25the legislature and the commissioner of education, at least on a biennial basis, on the 34.26degree to which the statewide educational accountability and reporting system includes a 34.27comprehensive assessment framework that measures school accountability for students 34.28achieving the goals described in the state's results-oriented graduation rule. The office shall 34.29consider determine and annually report to the legislature whether and how effectively: 34.30    (1) the statewide system of educational accountability utilizes multiple indicators to 34.31provide valid and reliable comparative and contextual data on students, schools, districts, 34.32and the state, and if not, recommend ways to improve the accountability reporting system.;34.33    (2) the commissioner makes statistical adjustments when reporting student data over 34.34time, consistent with clause (4);35.1    (3) the commissioner uses indicators of student achievement growth over time 35.2and a value-added assessment model that estimates the effects of the school and school 35.3district on student achievement to measure school performance, consistent with section 35.4120B.36, subdivision 1;35.5    (4) the commissioner makes data available on students who do not pass one or more 35.6of the state's required GRAD tests and do not receive a diploma as a consequence, and 35.7categorizes these data according to gender, race, eligibility for free or reduced lunch, and 35.8English language proficiency; and35.9    (5) the commissioner fulfills the requirements under section 127A.095, subdivision 2.35.10    (b) When the office reviews the statewide educational accountability and reporting 35.11system, it shall also consider:35.12    (1) the objectivity and neutrality of the state's educational accountability system; and35.13    (2) the impact of a testing program on school curriculum and student learning.35.14EFFECTIVE DATE.This section is effective the day following final enactment.35.15    Sec. 10. Minnesota Statutes 2006, section 120B.36, subdivision 1, is amended to read:35.16    Subdivision 1. School performance report cards. (a) The commissioner shall 35.17use objective criteria based on levels of student performance to identify four to six 35.18designations applicable to high and low performing public schools. The objective 35.19criteria shall include report at least student academic performance, school safety, two 35.20separate student-to-teacher ratios that clearly indicate the definition of teacher consistent 35.21with sections 122A.06 and 122A.15 for purposes of determining these ratios, and staff 35.22characteristics, with a value-added growth component added by the 2006-2007 no later 35.23than the 2008-2009 school year. The report must indicate a school's adequate yearly 35.24progress status, and must not set any designations applicable to high- and low-performing 35.25schools due solely to adequate yearly progress status.35.26    (b) The commissioner shall develop, annually update, and post on the department 35.27Web site school performance report cards. A school's designation must be clearly stated 35.28on each school performance report card.35.29    (c) The commissioner must make available the first school designations and school35.30performance report cards by November 2003, and during the beginning of each school 35.31year thereafter.35.32    (d) A school or district may appeal its adequate yearly progress status in writing 35.33a designation under this section to the commissioner within 30 days of receiving the 35.34designation notice of its status. The commissioner's decision to uphold or deny an appeal 35.35is final.36.1    (e) School performance report cards data are nonpublic data under section 
         13.02, 36.2subdivision 9
         , until not later than ten days after the appeal procedure described in 36.3paragraph (d) concludes. The department shall annually post school performance report 36.4cards to its public Web site no later than September 1. 36.5EFFECTIVE DATE.This section is effective the day following final enactment 36.6and applies to the school performance report cards for the 2006-2007 school year and later.36.7    Sec. 11. [121A.231] RESPONSIBLE FAMILY LIFE AND SEXUALITY 36.8EDUCATION PROGRAMS.36.9    Subdivision 1.Definitions.(a) "Responsible family life and sexuality education" 36.10means education in grades 7 through 12 that:36.11    (1) respects community values and encourages family communication;36.12    (2) develops skills in communication, decision making, and conflict resolution;36.13    (3) contributes to healthy relationships;36.14    (4) provides human development and sexuality education that is age appropriate 36.15and medically accurate;36.16    (5) includes an abstinence-first approach to delaying initiation of sexual activity that 36.17emphasizes abstinence while also including education about the use of protection and 36.18contraception; and36.19    (6) promotes individual responsibility.36.20    (b) "Age appropriate" refers to topics, messages, and teaching methods suitable to 36.21particular ages or age groups of children and adolescents, based on developing cognitive, 36.22emotional, and behavioral capacity typical for the age or age group.36.23    (c) "Medically accurate" means verified or supported by research conducted in 36.24compliance with scientific methods and published in peer-reviewed journals, where 36.25appropriate, and recognized as accurate and objective by professional organizations 36.26and agencies in the relevant field, such as the federal Centers for Disease Control 36.27and Prevention, the American Public Health Association, the American Academy of 36.28Pediatrics, or the American College of Obstetricians and Gynecologists.36.29    Subd. 2.Curriculum requirements.(a) A school district must offer and may 36.30independently establish policies, procedures, curriculum, and services for providing 36.31responsible family life and sexuality education that is age appropriate and medically 36.32accurate for grades 7 through 12.36.33    (b) A school district must consult with parents or guardians of enrolled students 36.34when establishing policies, procedures, curriculum, and services under this subdivision.37.1    Subd. 3.Notice and parental options.(a) It is the legislature's intent to encourage 37.2pupils to communicate with their parents or guardians about human sexuality and to respect 37.3rights of parents or guardians to supervise their children's education on these subjects.37.4    (b) Parents or guardians may excuse their children from all or part of a responsible 37.5family life and sexuality education program.37.6    (c) A school district must establish policies and procedures consistent with 37.7paragraph (e) and this section for providing parents or guardians reasonable notice with 37.8the following information:37.9    (1) if the district is offering a responsible family life and sexuality education program 37.10to the parents' or guardians' child during the course of the year;37.11    (2) how the parents or guardians may inspect the written and audio/visual 37.12educational materials used in the program and the process for inspection;37.13    (3) if the program is presented by school district personnel or outside consultants, 37.14and if outside consultants are used, who they may be; and 37.15    (4) parents' or guardians' right to choose not to have their child participate in the 37.16program and the procedure for exercising that right.37.17    (d) A school district must establish policies and procedures for reasonably restricting 37.18the availability of written and audio/visual educational materials from public view of 37.19students who have been excused from all or part of a responsible family life and sexuality 37.20education program at the request of a parent or guardian, consistent with paragraph (e) 37.21and this section.37.22    (e) A school district may develop a policy for a parent, guardian, or adult student 37.23age 18 or older to review the content of the instructional materials under this section. If a 37.24school district develops a policy, it must make reasonable arrangements with school 37.25personnel for alternative instruction for those pupils whose parents or guardians object to 37.26the content of the instruction, and must not impose an academic or other penalty upon a 37.27pupil merely for arranging the alternative instruction. School personnel may evaluate and 37.28assess the quality of the pupil's work completed as part of the alternative instruction.37.29    Subd. 4.Assistance to school districts.(a) The Department of Education may 37.30offer services to school districts to help them implement effective responsible family life 37.31and sexuality education programs. In making these services available the department 37.32may provide:37.33    (1) training for teachers, parents, and community members in the development of 37.34responsible family life and sexuality education curriculum or services and in planning 37.35for monitoring and evaluation activities;38.1    (2) resource staff persons to provide expert training, curriculum development and 38.2implementation, and evaluation services;38.3    (3) technical assistance to promote and coordinate community, parent, and youth 38.4forums in communities identified as having high needs for responsible family life and 38.5sexuality education;38.6    (4) technical assistance for issue management and policy development training for 38.7school boards, superintendents, principals, and administrators across the state; and 38.8    (b) Technical assistance in accordance with National Health Education Standards 38.9provided by the department to school districts may:38.10    (1) promote instruction and use of materials that are age appropriate;38.11    (2) provide information that is medically accurate and objective;38.12    (3) provide instruction and promote use of materials that are respectful of marriage 38.13and commitments in relationships;38.14    (4) provide instruction and promote use of materials that are appropriate for use 38.15with pupils and family experiences based on race, gender, sexual orientation, ethnic 38.16and cultural background, and appropriately accommodate alternative learning based on 38.17language or disability;38.18    (5) provide instruction and promote use of materials that encourage pupils to 38.19communicate with their parents or guardians about human sexuality;38.20    (6) provide instruction and promote use of age-appropriate materials that teach 38.21abstinence from sexual intercourse as the only certain way to prevent unintended 38.22pregnancy or sexually transmitted infections, including HIV, Chlamydia, and HPV, and 38.23provide information about the role and value of abstinence while also providing medically 38.24accurate information on other methods of preventing and reducing risk for unintended 38.25pregnancy and sexually transmitted infections;38.26    (7) provide instruction and promote use of age-appropriate materials that are 38.27medically accurate in explaining transmission modes, risks, symptoms, and treatments for 38.28sexually transmitted infections, including HIV, Chlamydia, and HPV;38.29    (8) provide instruction and promote use of age-appropriate materials that address 38.30varied societal views on sexuality, sexual behaviors, pregnancy, and sexually transmitted 38.31infections, including HIV, Chlamydia, and HPV, in an age-appropriate manner;38.32    (9) provide instruction and promote use of age-appropriate materials that provide 38.33information about the effectiveness and safety of all FDA-approved methods for 38.34preventing and reducing risk for unintended pregnancy and sexually transmitted infections, 38.35including HIV, Chlamydia, and HPV;39.1    (10) provide instruction and promote use of age-appropriate materials that provide 39.2instruction in skills for making and implementing responsible decisions about sexuality;39.3    (11) provide instruction and promote use of age-appropriate materials that provide 39.4instruction in skills for making and implementing responsible decisions about finding and 39.5using health services; and 39.6    (12) provide instruction and promote use of age-appropriate materials that do not 39.7teach or promote religious doctrine or bias against a religion or reflect or promote bias 39.8against any person on the basis of any category protected under the Minnesota Human 39.9Rights Act, chapter 363A.39.10    Sec. 12. Minnesota Statutes 2006, section 122A.20, subdivision 1, is amended to read:39.11    Subdivision 1. Grounds for revocation, suspension, or denial. (a) The Board of 39.12Teaching or Board of School Administrators, whichever has jurisdiction over a teacher's 39.13licensure, may, on the written complaint of the school board employing a teacher, a teacher 39.14organization, or any other interested person, refuse to issue, refuse to renew, suspend, or 39.15revoke a teacher's license to teach for any of the following causes:39.16    (1) immoral character or conduct;39.17    (2) failure, without justifiable cause, to teach for the term of the teacher's contract;39.18    (3) gross inefficiency or willful neglect of duty;39.19    (4) failure to meet licensure requirements; or39.20    (5) fraud or misrepresentation in obtaining a license.39.21    The written complaint must specify the nature and character of the charges.39.22    (b) The Board of Teaching or Board of School Administrators, whichever 39.23has jurisdiction over a teacher's licensure, shall refuse to issue, refuse to renew, or 39.24automatically revoke a teacher's license to teach without the right to a hearing upon 39.25receiving a certified copy of a conviction showing that the teacher has been convicted 39.26of child abuse, as defined in section 
         609.185, or sexual abuse under section 
         609.342, 39.27609.343
         , 
         609.344, 
         609.345, 
         609.3451, subdivision 3, or 
         617.23, subdivision 3, orusing 39.28minors in a sexual performance under section 617.246, or possessing pornographic works 39.29involving a minor under section 617.247, or under a similar law of another state or the 39.30United States. The board shall send notice of this licensing action to the district in which 39.31the teacher is currently employed. 39.32    (c) A person whose license to teach has been revoked, not issued, or not renewed 39.33under paragraph (b), may petition the board to reconsider the licensing action if the 39.34person's conviction for child abuse or sexual abuse is reversed by a final decision of the 39.35Court of Appeals or the Supreme Court or if the person has received a pardon for the 40.1offense. The petitioner shall attach a certified copy of the appellate court's final decision or 40.2the pardon to the petition. Upon receiving the petition and its attachment, the board shall 40.3schedule and hold a disciplinary hearing on the matter under section 
         214.10, subdivision 2, 40.4unless the petitioner waives the right to a hearing. If the board finds that, notwithstanding 40.5the reversal of the petitioner's criminal conviction or the issuance of a pardon, the 40.6petitioner is disqualified from teaching under paragraph (a), clause (1), the board shall 40.7affirm its previous licensing action. If the board finds that the petitioner is not disqualified 40.8from teaching under paragraph (a), clause (1), it shall reverse its previous licensing action. 40.9    (d) For purposes of this subdivision, the Board of Teaching is delegated the authority 40.10to suspend or revoke coaching licenses.40.11EFFECTIVE DATE.This section is effective the day following final enactment.40.12    Sec. 13. Minnesota Statutes 2006, section 122A.415, is amended by adding a 40.13subdivision to read:40.14    Subd. 4.Basic alternative teacher compensation aid.(a) For fiscal year 2009 40.15and later, the basic alternative teacher compensation aid for a school district with a plan 40.16approved under section 122A.414, subdivision 2b, equals 73.1 percent of the alternative 40.17teacher compensation revenue under subdivision 1. The basic alternative teacher 40.18compensation aid for an intermediate school district or charter school with a plan approved 40.19under section 122A.414, subdivisions 2a and 2b, if the recipient is a charter school, equals 40.20$260 times the number of pupils enrolled in the school on October 1 of the previous 40.21fiscal year, or on October 1 of the current fiscal year for a charter school in the first year 40.22of operation, times the ratio of the sum of the alternative teacher compensation aid and 40.23alternative teacher compensation levy for all participating school districts to the maximum 40.24alternative teacher compensation revenue for those districts under subdivision 1.40.25    (b) Notwithstanding paragraph (a) and subdivision 1, the state total basic alternative 40.26teacher compensation aid entitlement must not exceed $43,515,000 for fiscal year 2009, 40.27$42,953,000 for fiscal year 2010, and $42,643,000 for fiscal year 2011 and later. The 40.28commissioner must limit the amount of alternative teacher compensation aid approved 40.29under this section so as not to exceed these limits.40.30EFFECTIVE DATE.This section is effective for revenue for fiscal year 2009 40.31and later.40.32    Sec. 14. Minnesota Statutes 2006, section 122A.415, is amended by adding a 40.33subdivision to read:41.1    Subd. 5.Alternative teacher compensation levy.For fiscal year 2009 and later, 41.2the alternative teacher compensation levy for a district receiving basic alternative teacher 41.3compensation aid equals the product of: (1) the difference between the district's alternative 41.4teacher compensation revenue, under subdivision 1, and the district's basic alternative 41.5teacher compensation aid, under subdivision 4; times (2) the lesser of one or the ratio of 41.6the district's adjusted net tax capacity per adjusted pupil unit to $5,913.41.7EFFECTIVE DATE.This section is effective for revenue for fiscal year 2009 41.8and later.41.9    Sec. 15. Minnesota Statutes 2006, section 122A.415, is amended by adding a 41.10subdivision to read:41.11    Subd. 6.Alternative teacher compensation aid.(a) For fiscal year 2009 and 41.12later, a district's alternative teacher compensation equalization aid equals the district's 41.13alternative teacher compensation revenue, minus the district's basic alternative teacher 41.14compensation aid, minus the district's alternative teacher compensation levy. If a district 41.15does not levy the entire amount permitted under subdivision 5, the alternative teacher 41.16compensation equalization aid must be reduced in proportion to the actual amount levied.41.17    (b) A district's alternative teacher compensation aid equals the sum of the 41.18district's basic alternative teacher compensation aid and the district's alternative teacher 41.19compensation equalization aid.41.20EFFECTIVE DATE.This section is effective for revenue for fiscal year 2009 41.21and later.41.22    Sec. 16. Minnesota Statutes 2006, section 122A.61, is amended by adding a 41.23subdivision to read:41.24    Subd. 3.Coursework and training.A school district may use the revenue 41.25reserved under subdivision 1 for grants to the district's teachers to pay for coursework 41.26and training leading to certification as a college in the schools or concurrent enrollment 41.27teacher. In order to receive a grant, the teacher must be enrolled in a program that includes 41.28coursework and training focused on teaching a core subject.41.29    Sec. 17. Minnesota Statutes 2006, section 122A.72, subdivision 5, is amended to read:41.30    Subd. 5. Center functions.(a) A teacher center shall perform functions according 41.31to this subdivision. The center shall assist teachers, diagnose learning needs, experiment 41.32with the use of multiple instructional approaches, assess pupil outcomes, assess staff 42.1development needs and plans, and teach school personnel about effective pedagogical 42.2approaches. The center shall develop and produce curricula and curricular materials 42.3designed to meet the educational needs of pupils being served, by applying educational 42.4research and new and improved methods, practices, and techniques. The center shall 42.5provide programs to improve the skills of teachers to meet the special educational needs of 42.6pupils. The center shall provide programs to familiarize teachers with developments in 42.7curriculum formulation and educational research, including how research can be used to 42.8improve teaching skills. The center shall facilitate sharing of resources, ideas, methods, 42.9and approaches directly related to classroom instruction and improve teachers' familiarity 42.10with current teaching materials and products for use in their classrooms. The center shall 42.11provide in-service programs.42.12    (b) Each teacher center must provide a professional development program to train 42.13interested and highly qualified elementary, middle, and secondary teachers, selected by the 42.14employing school district, to assist other teachers in that district with mathematics and 42.15science curriculum, standards, and instruction so that all teachers have access to:42.16    (1) high quality professional development programs in mathematics and science 42.17that address curriculum, instructional methods, alignment of standards, and performance 42.18measurements, enhance teacher and student learning, and support state mathematics and 42.19science standards; and 42.20    (2) research-based mathematics and science programs and instructional models 42.21premised on best practices that inspire teachers and students and have practical classroom 42.22application.42.23EFFECTIVE DATE.This section is effective for the 2007-2008 school year and 42.24later.42.25    Sec. 18. Minnesota Statutes 2006, section 123B.02, is amended by adding a 42.26subdivision to read:42.27    Subd. 24.Membership in economic development, community, and civic 42.28organizations.The board may authorize and pay for the membership of the school 42.29district or of any district representative designated by the board in those local economic 42.30development associations or other community or civic organizations that the board deems 42.31appropriate.42.32    Sec. 19. Minnesota Statutes 2006, section 123B.143, subdivision 1, is amended to read:42.33    Subdivision 1. Contract; duties. All districts maintaining a classified secondary 42.34school must employ a superintendent who shall be an ex officio nonvoting member of the 43.1school board. The authority for selection and employment of a superintendent must be 43.2vested in the board in all cases. An individual employed by a board as a superintendent 43.3shall have an initial employment contract for a period of time no longer than three years 43.4from the date of employment. Any subsequent employment contract must not exceed a 43.5period of three years. A board, at its discretion, may or may not renew an employment 43.6contract. A board must not, by action or inaction, extend the duration of an existing 43.7employment contract. Beginning 365 days prior to the expiration date of an existing 43.8employment contract, a board may negotiate and enter into a subsequent employment 43.9contract to take effect upon the expiration of the existing contract. A subsequent contract 43.10must be contingent upon the employee completing the terms of an existing contract. If a 43.11contract between a board and a superintendent is terminated prior to the date specified in 43.12the contract, the board may not enter into another superintendent contract with that same 43.13individual that has a term that extends beyond the date specified in the terminated contract. 43.14A board may terminate a superintendent during the term of an employment contract for any 43.15of the grounds specified in section 
         122A.40, subdivision 9 or 13. A superintendent shall 43.16not rely upon an employment contract with a board to assert any other continuing contract 43.17rights in the position of superintendent under section 
         122A.40. Notwithstanding the 43.18provisions of sections 
         122A.40, subdivision 10 or 11, 
         123A.32, 
         123A.75, or any other law 43.19to the contrary, no individual shall have a right to employment as a superintendent based 43.20on order of employment in any district. If two or more districts enter into an agreement for 43.21the purchase or sharing of the services of a superintendent, the contracting districts have 43.22the absolute right to select one of the individuals employed to serve as superintendent 43.23in one of the contracting districts and no individual has a right to employment as the 43.24superintendent to provide all or part of the services based on order of employment in a 43.25contracting district. The superintendent of a district shall perform the following: 43.26    (1) visit and supervise the schools in the district, report and make recommendations 43.27about their condition when advisable or on request by the board;43.28    (2) recommend to the board employment and dismissal of teachers;43.29    (3) superintend school grading practices and examinations for promotions;43.30    (4) make reports required by the commissioner;43.31    (5) by January 10, submit an annual report to the commissioner in a manner 43.32prescribed by the commissioner, in consultation with school districts, identifying the 43.33expenditures that the district requires to ensure an 80 percent student passage rate on the 43.34basic standards test MCA-IIs taken in the eighth grade, identifying the highest student 43.35passage rate the district expects it will be able to attain on the basic standards test MCA-IIs43.36by grade 12, and the amount of expenditures that the district requires to attain the targeted 44.1student passage rate, and how much the district is cross-subsidizing programs with special 44.2education, basic skills, and general education revenue; and44.3    (6) perform other duties prescribed by the board.44.4    Sec. 20. Minnesota Statutes 2006, section 123B.92, subdivision 3, is amended to read:44.5    Subd. 3. Alternative attendance programs.(a) A district that enrolls nonresident 44.6pupils in programs under sections 
         124D.03, 
         124D.06, 
         124D.08, 
         123A.05 to 
         123A.08, 44.7and 
         124D.68, must provide authorized transportation to the pupil within the attendance 44.8area for the school that the pupil attends at the same level of service that is provided to 44.9resident pupils within the attendance area. The resident district need not provide or pay for 44.10transportation between the pupil's residence and the district's border. 44.11    (b) A district may provide transportation to allow a student who attends a high-need 44.12English language learner program and who resides within the transportation attendance 44.13area of the program to continue in the program until the student completes the highest 44.14grade level offered by the program.44.15EFFECTIVE DATE.This section is effective the day following final enactment.44.16    Sec. 21. [124D.091] CONCURRENT ENROLLMENT PROGRAM AID.44.17    Subdivision 1.Accreditation.To establish a uniform standard by which 44.18concurrent enrollment courses and professional development activities may be measured, 44.19postsecondary institutions are encouraged to apply for accreditation by the National 44.20Alliance of Concurrent Enrollment Partnership.44.21    Subd. 2.Eligibility.A district that offers a concurrent enrollment course according 44.22to an agreement under section 124D.09, subdivision 10, is eligible to receive aid for the 44.23costs of providing postsecondary courses at the high school. Beginning in fiscal year 2011, 44.24districts only are eligible for aid if the college or university concurrent enrollment courses 44.25offered by the district are accredited by the National Alliance of Concurrent Enrollment 44.26Partnership, in the process of being accredited, or are shown by clear evidence to be of 44.27comparable standard to accredited courses.44.28    Subd. 3.Aid.An eligible district shall receive $150 per pupil enrolled in a 44.29concurrent enrollment course. The money must be used to defray the cost of delivering 44.30the course at the high school. The commissioner shall establish application procedures 44.31and deadlines for receipt of aid payments.44.32    Sec. 22. Minnesota Statutes 2006, section 124D.095, subdivision 2, is amended to read:45.1    Subd. 2. Definitions. For purposes of this section, the following terms have the 45.2meanings given them.45.3    (a) "Online learning" is an interactive course or program that delivers instruction 45.4from a teacher to a student by computer; is combined with other traditional delivery 45.5methods that include frequent student assessment and may include actual teacher contact 45.6time; and meets or exceeds state academic standards.45.7    (b) "Online learning provider" is a school district, an intermediate school district, an 45.8organization of two or more school districts operating under a joint powers agreement, or 45.9a charter school located in Minnesota that provides online learning to students.45.10    (c) "Student" is a Minnesota resident enrolled in a school under section 
         120A.22, 45.11subdivision 4
         , in kindergarten through grade 12.45.12    (d) "Online learning student" is a student enrolled in an online learning course or 45.13program delivered by an online provider under paragraph (b).45.14    (e) "Enrolling district" means the school district or charter school in which a student 45.15is enrolled under section 
         120A.22, subdivision 4, for purposes of compulsory attendance.45.16    (f) "Supplemental online learning" means an online course taken in place of a course 45.17period during the regular school day at a local district school.45.18    (g) "Full-time online provider" means an enrolling school authorized by the 45.19department to deliver comprehensive public education at any or all of the elementary, 45.20middle, or high school levels.45.21    Sec. 23. Minnesota Statutes 2006, section 124D.095, subdivision 3, is amended to read:45.22    Subd. 3. Authorization; notice; limitations on enrollment. (a) A student may 45.23apply to an online learning provider to enroll in online learning for full-time enrollment in 45.24an approved online learning program under section 124D.03, 124D.08 or 124D.10, or for 45.25supplemental online learning. Notwithstanding sections 124D.03, 124D.08, and 124D.10, 45.26procedures for enrolling in online learning shall be as provided in this subdivision. A 45.27student age 17 or younger must have the written consent of a parent or guardian to apply. 45.28No school district or charter school may prohibit a student from applying to enroll in 45.29online learning. An online learning provider that accepts a student under this section must, 45.30within ten days, notify the student and the enrolling district if the enrolling district is not 45.31the online learning provider. The notice must report the student's course or program and 45.32hours of instruction. In order that a student may enroll in online learning, the student 45.33and the student's parents must submit an application to the online learning provider and 45.34identify the reason for enrolling in online learning. The online learning provider that 45.35accepts a student under this section must within ten days notify the student and the 46.1enrolling district in writing if the enrolling district is not the online learning provider. The 46.2student and family must notify the online learning provider of their intent to enroll in 46.3online learning within ten days of acceptance, at which time the student and parent must 46.4sign a statement of assurance that they have reviewed the online course or program and 46.5understand the expectations of online learning enrollment. The online learning provider 46.6must notify the enrolling district of the student's enrollment in online learning in writing 46.7on a form provided by the department.46.8    (b) Supplemental online learning notification to the enrolling district upon student 46.9enrollment in the online learning program will include the courses or program, credits 46.10to be awarded, the start date of online enrollment, and confirmation that the courses will 46.11meet the student's graduation plan. A student may enroll in supplemental online learning 46.12courses up to the midpoint of the enrolling district's term. The enrolling district may waive 46.13this requirement for special circumstances and upon acceptance by the online provider.46.14    (b) An online learning student must notify the enrolling district at least 30 days 46.15before taking an online learning course or program if the enrolling district is not providing 46.16the online learning. (c) An online learning provider must notify the commissioner that it is 46.17delivering online learning and report the number of online learning students it is accepting 46.18and the online learning courses and programs it is delivering.46.19    (c) (d) An online learning provider may limit enrollment if the provider's school 46.20board or board of directors adopts by resolution specific standards for accepting and 46.21rejecting students' applications.46.22    (d) (e) An enrolling district may reduce an online learning student's regular 46.23classroom instructional membership in proportion to the student's membership in online 46.24learning courses.46.25    Sec. 24. Minnesota Statutes 2006, section 124D.095, subdivision 4, is amended to read:46.26    Subd. 4. Online learning parameters. (a) An online learning student must receive 46.27academic credit for completing the requirements of an online learning course or program. 46.28Secondary credits granted to an online learning student must be counted toward the 46.29graduation and credit requirements of the enrolling district. An online learning provider 46.30must make available to the enrolling district the course syllabus, standard alignment, 46.31content outline, assessment requirements, and contact information for supplemental online 46.32courses taken by students in the enrolling district. The enrolling district must apply the 46.33same graduation requirements to all students, including online learning students, and 46.34must continue to provide nonacademic services to online learning students. If a student 46.35completes an online learning course or program that meets or exceeds a graduation 47.1standard or grade progression requirement at the enrolling district, that standard or 47.2requirement is met. The enrolling district must use the same criteria for accepting online 47.3learning credits or courses as it does for accepting credits or courses for transfer students 47.4under section 
         124D.03, subdivision 9. The enrolling district may reduce the teacher 47.5contact timecourse schedule of an online learning student in proportion to the number 47.6of online learning courses the student takes from an online learning provider that is not 47.7the enrolling district.47.8    (b) An online learning student may:47.9    (1) enroll in supplemental online learning courses during a single school year in a 47.10maximum of 12 semester-long courses or their equivalent delivered by an online learning 47.11provider or the enrolling district to a maximum of 50 percent of the student's full schedule 47.12of courses per term. A student may exceed the supplemental online learning registration 47.13limit if the enrolling district grants permission for supplemental online learning enrollment 47.14above the limit, or if an agreement is made between the enrolling district and the online 47.15learning provider for instructional services;47.16    (2) complete course work at a grade level that is different from the student's current 47.17grade level; and47.18    (3) enroll in additional courses with the online learning provider under a separate 47.19agreement that includes terms for payment of any tuition or course fees.47.20    (c) An online learning student has the same access to the computer hardware and 47.21education software available in a school as all other students in the enrolling district. An 47.22online learning provider must assist an online learning student whose family qualifies 47.23for the education tax credit under section 
         290.0674 to acquire computer hardware and 47.24educational software for online learning purposes.47.25    (d) An enrolling district may offer online learning to its enrolled students. Such 47.26online learning does not generate online learning funds under this section. An enrolling 47.27district that offers online learning only to its enrolled students is not subject to the 47.28reporting requirements or review criteria under subdivision 7. A teacher with a Minnesota 47.29license must assemble and deliver instruction to enrolled students receiving online 47.30learning from an enrolling district. The delivery of instruction occurs when the student 47.31interacts with the computer or the teacher and receives ongoing assistance and assessment 47.32of learning. The instruction may include curriculum developed by persons other than a 47.33teacher with a Minnesota license.47.34    (e) An online learning provider that is not the enrolling district is subject to 47.35the reporting requirements and review criteria under subdivision 7. A teacher with a 47.36Minnesota license must assemble and deliver instruction to online learning students. The 48.1delivery of instruction occurs when the student interacts with the computer or the teacher 48.2and receives ongoing assistance and assessment of learning. The instruction may include 48.3curriculum developed by persons other than a teacher with a Minnesota license. Unless 48.4the commissioner grants a waiver, a teacher providing online learning instruction must not 48.5instruct more than 40 students in any one online learning course or program.48.6    (f) To enroll in more than 50 percent of the student's full schedule of courses per term 48.7in online learning, the student must qualify to exceed the supplemental online learning 48.8registration limit under paragraph (b) or apply for enrollment to an approved full-time 48.9online learning program following appropriate procedures in subdivision 3, paragraph (a). 48.10Full-time online learning students may enroll in classes at a local school per contract for 48.11instructional services between the online learning provider and the school district.48.12    Sec. 25. Minnesota Statutes 2006, section 124D.095, subdivision 7, is amended to read:48.13    Subd. 7. Department of Education. (a) The department must review and certify 48.14online learning providers. The online learning courses and programs must be rigorous, 48.15aligned with state academic standards, and contribute to grade progression in a single 48.16subject. Online learning providers must affirm demonstrate to the commissioner that 48.17online learning courses have equivalent standards or instruction, curriculum, and 48.18assessment requirements as other courses offered to enrolled students. The online learning 48.19provider must also demonstrate expectations for actual teacher contact time or other 48.20student-to-teacher communication. Once an online learning provider is approved under 48.21this paragraph, all of its online learning course offerings are eligible for payment under 48.22this section unless a course is successfully challenged by an enrolling district or the 48.23department under paragraph (b).48.24    (b) An enrolling district may challenge the validity of a course offered by an online 48.25learning provider. The department must review such challenges based on the certification 48.26procedures under paragraph (a). The department may initiate its own review of the validity 48.27of an online learning course offered by an online learning provider.48.28    (c) The department may collect a fee not to exceed $250 for certifying online 48.29learning providers or $50 per course for reviewing a challenge by an enrolling district.48.30    (d) The department must develop, publish, and maintain a list of approved online 48.31learning providers and online learning courses and programs that it has reviewed and 48.32certified.48.33    Sec. 26. Minnesota Statutes 2006, section 124D.10, subdivision 4, is amended to read:49.1    Subd. 4. Formation of school. (a) A sponsor may authorize one or more licensed 49.2teachers under section 
         122A.18, subdivision 1, to operate a charter school subject to 49.3approval by the commissioner. A board must vote on charter school application for 49.4sponsorship no later than 90 days after receiving the application. After 90 days, the 49.5applicant may apply to the commissioner. If a board elects not to sponsor a charter school, 49.6the applicant may appeal the board's decision to the commissioner who may elect to assist 49.7the applicant in finding an eligible sponsor. The school must be organized and operated as 49.8a cooperative under chapter 308A or nonprofit corporation under chapter 317A and the 49.9provisions under the applicable chapter shall apply to the school except as provided in this 49.10section. Notwithstanding sections 
         465.717 and 
         465.719, a school district may create a 49.11corporation for the purpose of creating a charter school.49.12    (b) Before the operators may form and operate a school, the sponsor must file an 49.13affidavit with the commissioner stating its intent to authorize a charter school. The 49.14affidavit must state the terms and conditions under which the sponsor would authorize a 49.15charter school and how the sponsor intends to oversee the fiscal and student performance 49.16of the charter school and to comply with the terms of the written contract between the 49.17sponsor and the charter school board of directors under subdivision 6. The commissioner 49.18must approve or disapprove the sponsor's proposed authorization within 90 days of 49.19receipt of the affidavit. Failure to obtain commissioner approval precludes a sponsor from 49.20authorizing the charter school that was the subject of the affidavit.49.21    (c) The operators authorized to organize and operate a school, before entering into 49.22a contract or other agreement for professional or other services, goods, or facilities, 49.23must incorporate as a cooperative under chapter 308A or as a nonprofit corporation 49.24under chapter 317A and must establish a board of directors composed of at least five 49.25members until a timely election for members of the charter school board of directors is 49.26held according to the school's articles and bylaws. A charter school board of directors 49.27must be composed of at least five members. Any staff members who are employed at the 49.28school, including teachers providing instruction under a contract with a cooperative, and 49.29all parents of children enrolled in the school may participate in the election for members 49.30of the school's board of directors. Licensed teachers employed at the school, including 49.31teachers providing instruction under a contract with a cooperative, must be a majority 49.32of the members of the board of directors before the school completes its third year of 49.33operation, unless the commissioner waives the requirement for a majority of licensed 49.34teachers on the board. Board of director meetings must comply with chapter 13D.49.35    (d) The granting or renewal of a charter by a sponsoring entity must not be 49.36conditioned upon the bargaining unit status of the employees of the school.50.1    (e) A sponsor may authorize the operators of a charter school to expand the 50.2operation of the charter school to additional sites or to add additional grades at the school 50.3beyond those described in the sponsor's application as approved by the commissioner only 50.4after submitting a supplemental application to the commissioner in a form and manner 50.5prescribed by the commissioner. The supplemental application must provide evidence that:50.6    (1) the expansion of the charter school is supported by need and projected enrollment;50.7    (2) the charter school is fiscally sound;50.8    (3) the sponsor supports the expansion; and50.9    (4) the building of the additional site meets all health and safety requirements to 50.10be eligible for lease aid.50.11    (f) The commissioner annually must provide timely financial management training 50.12to newly elected members of a charter school board of directors and ongoing training to 50.13other members of a charter school board of directors. Training must address ways to:50.14    (1) proactively assess opportunities for a charter school to maximize all available 50.15revenue sources;50.16    (2) establish and maintain complete, auditable records for the charter school;50.17    (3) establish proper filing techniques;50.18    (4) document formal actions of the charter school, including meetings of the charter 50.19school board of directors;50.20    (5) properly manage and retain charter school and student records;50.21    (6) comply with state and federal payroll record-keeping requirements; and50.22    (7) address other similar factors that facilitate establishing and maintaining complete 50.23records on the charter school's operations.50.24    Sec. 27. Minnesota Statutes 2006, section 124D.10, subdivision 23a, is amended to 50.25read:50.26    Subd. 23a. Related party lease costs. (a) A charter school is prohibited from 50.27entering a lease of real property with a related party as defined in this subdivision 26, unless 50.28the lessor is a nonprofit corporation under chapter 317A or a cooperative under chapter 50.29308A, and the lease cost is reasonable under section 
         124D.11, subdivision 4, clause (1). 50.30    (b) For purposes of this subdivision section and section 124D.11:50.31    (1) A "related party" is an affiliate or close relative of the other party in question, an 50.32affiliate of a close relative, or a close relative of an affiliate.50.33    (2) "Affiliate" means a person that directly, or indirectly through one or more 50.34intermediaries, controls, or is controlled by, or is under common control with, another 50.35person.51.1    (3) "Close relative" means an individual whose relationship by blood, marriage, or 51.2adoption to another individual is no more remote than first cousin.51.3    (4) "Person" means an individual or entity of any kind.51.4    (5) "Control" includes the terms "controlling," "controlled by," and "under common 51.5control with" and means the possession, direct or indirect, of the power to direct or cause 51.6the direction of the management, operations, or policies of a person, whether through the 51.7ownership of voting securities, by contract, or otherwise.51.8    (c) A lease of real property to be used for a charter school, not excluded in paragraph 51.9(b) (a), must contain the following statement: "This lease is subject to Minnesota Statutes, 51.10section 
         124D.10, subdivision 23a." 51.11    (d) If a charter school enters into as lessee a lease with a related party and the 51.12charter school subsequently closes, the commissioner has the right to recover from the 51.13lessor any lease payments in excess of those that are reasonable under section 
         124D.11, 51.14subdivision 4
         , clause (1). 51.15    Sec. 28. Minnesota Statutes 2006, section 124D.10, subdivision 24, is amended to read:51.16    Subd. 24. Pupil enrollment upon nonrenewal or termination of charter school 51.17contract. If a contract is not renewed or is terminated according to subdivision 23, a 51.18pupil who attended the school, siblings of the pupil, or another pupil who resides in the 51.19same place as the pupil may enroll in the resident district or may submit an application 51.20to a nonresident district according to section 
         124D.03 at any time. Applications and 51.21notices required by section 
         124D.03 must be processed and provided in a prompt manner. 51.22The application and notice deadlines in section 
         124D.03 do not apply under these 51.23circumstances. The closed charter school must transfer the student's educational records 51.24within ten business days of closure to the student's school district of residence where the 51.25records must be retained or transferred under section 120A.22, subdivision 7.51.26    Sec. 29. [124D.645] MULTIRACIAL DIVERSITY.51.27    (a) Notwithstanding other law or rule to the contrary and in order to effectively 51.28meet students' educational needs and foster parents' meaningful participation in their 51.29children's education, a school district may apply to the commissioner for a waiver from 51.30the requirement to maintain racial balance within a district school if the racial imbalance 51.31in that school results from:51.32    (1) the enrollment of protected multiracial students and the proportion of enrolled 51.33multiracial students reflects the proportion of multiracial students who reside in the school 51.34attendance area or who are enrolled in the grade levels served by the district; or52.1    (2) the enrollment of limited English proficiency students in a transition program 52.2that includes an intensive English component.52.3The commissioner must grant the waiver if the district in which the school is located offers 52.4the multiracial students or the limited English proficiency students, as appropriate, the 52.5option of enrolling in another school with the requisite racial balance, and the students' 52.6parents choose not to pursue that option.52.7    (b) This section is effective for the 2006-2007 through 2010-2011 school years or 52.8until amended rules are adopted under Minnesota Rules, chapter 3535, pertaining to racial 52.9diversity, whichever comes first.52.10EFFECTIVE DATE.This section is effective the day following final enactment.52.11    Sec. 30. Minnesota Statutes 2006, section 124D.84, subdivision 1, is amended to read:52.12    Subdivision 1. Awards. The commissioner may award director of the Office 52.13of Higher Education shall establish procedures for the distribution of scholarships to 52.14any Minnesota resident student who is of one-fourth or more Indian ancestry, who has 52.15applied for other existing state and federal scholarship and grant programs, and who, in 52.16the opinion of the commissioner director of the Office of Higher Education, based upon 52.17postsecondary institution recommendations, has the capabilities to benefit from further 52.18education. Scholarships must be for accredited degree programs in accredited Minnesota 52.19colleges or universities or for courses in accredited Minnesota business, technical, or 52.20vocational schools. Scholarships may also be given to students attending Minnesota 52.21colleges that are in candidacy status for obtaining full accreditation, and are eligible for 52.22and receiving federal financial aid programs. Students are also eligible for scholarships 52.23when enrolled as students in Minnesota higher education institutions that have joint 52.24programs with other accredited higher education institutions. Scholarships shall be used 52.25to defray the total cost of education including tuition, incidental fees, books, supplies, 52.26transportation, other related school costs and the cost of board and room and shall be paid 52.27directly to the college or school concerned where the student receives federal financial 52.28aid. The total cost of education includes all tuition and fees for each student enrolling in a 52.29public institution and the portion of tuition and fees for each student enrolling in a private 52.30institution that does not exceed the tuition and fees at a comparable public institution.52.31Each student shall be awarded a scholarship based on the total cost of the student's 52.32education and a federal standardized need analysis after application of federal Pell money, 52.33state grant money, and other scholarships. Depending upon students' unmet needs, the 52.34Minnesota Indian scholarship program may award up to the current federal Pell grant 53.1allowable maximum student award per school year. Applicants are encouraged to apply 53.2for all other sources of financial aid.53.3    When an Indian student satisfactorily completes the work required by a certain 53.4college or school in a school year the student is eligible for additional scholarships, if 53.5additional training is necessary to reach the student's educational and vocational objective. 53.6Scholarships may not be given to any Indian student for more than five years of study at 53.7the undergraduate level and five years at the graduate level. Students may acquire only 53.8one degree per level and one terminal degree.53.9    Sec. 31. Minnesota Statutes 2006, section 127A.095, subdivision 2, is amended to read:53.10    Subd. 2. No Child Left Behind review. (a) The legislature intends to require 53.11the Department of Education to conduct a comprehensive review of the consolidated 53.12state plan the state submitted to the federal Department of Education to implement the 53.13No Child Left Behind Act. The Minnesota Department of Education shall seek waivers 53.14under paragraph (b). If the Department of Education is unable to obtain waivers under 53.15paragraph (b), it should recommend in its report under paragraph (b) whether the state 53.16should opt out of the No Child Left Behind Act.53.17    (b) The commissioner, by January 15, 2007 2008, shall report to the house of 53.18representatives and senate committees having jurisdiction over kindergarten through grade 53.1912 education policy and finance whether the department has received approval from 53.20the federal Department of Education to:53.21    (1) allow the state to develop a plan for determining adequate yearly progress that 53.22uses multiple measures of student achievement that include value-added measurement of 53.23student achievement in addition to standardized test results to evaluate school and student 53.24performance participate in the growth model pilot program;53.25    (2) exclude from sanctions a school that is classified as not having made adequate 53.26yearly progress due solely to different subgroups testing below proficient levels for at 53.27least two consecutive years;53.28    (3) allow the state to average three years of data for the purposes of identifying a 53.29school for improvement;53.30    (4) allow the state to use No Child Left Behind Act money to provide supplemental 53.31education services only in the academic subject area that causes a school to miss adequate 53.32yearly progress;53.33    (5) exclude from sanctions schools that have not made adequate yearly progress due 53.34solely to a subgroup of students with disabilities not testing at a proficient level;54.1    (6)(3) identify a school as not making adequate yearly progress only after the school 54.2has missed the adequate yearly progress targets in the same subject and subgroup for two 54.3consecutive years;54.4    (7) limit the score of a student within multiple subgroups to the smallest subgroup in 54.5which that student is included when calculating adequate yearly progress;54.6    (8)(4) determine when to hold schools accountable for including a student with 54.7limited English proficiency in adequate yearly progress calculations; and54.8    (9) use a fully computer-adaptive test for purposes of compliance with the No Child 54.9Left Behind Act54.10    (5) allow a district not making adequate yearly progress to offer supplemental 54.11educational services as an option before offering school choice;54.12    (6) allow a district not making adequate yearly progress to also be the supplemental 54.13educational services provider;54.14    (7) allow the state to maintain a subgroup size to 40 for the purposes of calculating 54.15adequate yearly progress for subgroups of students with limited English proficiency and 54.16subgroups of students with disabilities; and54.17    (8) create flexibility to enable the state to define and identify highly qualified 54.18teachers.54.19    Sec. 32. Laws 2005, First Special Session chapter 5, article 2, section 81, as amended 54.20by Laws 2006, chapter 263, article 2, section 20, is amended to read:54.21    Sec. 81. BOARD OF SCHOOL ADMINISTRATORS; RULEMAKING 54.22AUTHORITY.54.23    (a) On or before June 30, 2007 2008, the Board of School Administrators may adopt 54.24rules to reflect the changes in duties, responsibilities, and roles of school administrators 54.25under sections 
         121A.035, 
         121A.037 and 
         299F.30, and to make technical revisions and 54.26clarifications to Minnesota Rules, chapter 3512. 54.27    (b) Any rules the board adopts under the authority in paragraph (a) must retain the 54.28requirement in effect in calendar year 2006 governing classroom teaching experience for 54.29licensure as a principal.54.30EFFECTIVE DATE.This section is effective the day following final enactment.54.31    Sec. 33. RULEMAKING REQUIRED.54.32    (a) Notwithstanding the time limit in Minnesota Statutes, section 14.125, the Board 54.33of Teaching must adopt the rules it was mandated to adopt under Laws 2003, chapter 129, 55.1article 1, section 10. The board must publish a notice of intent to adopt rules or a notice of 55.2hearing for rules subject to this section before January 1, 2008. 55.3    (b) The Board of Teaching may charge fees to issue new credentials and to renew 55.4credentials for paraprofessionals issued credentials under the rules adopted under this 55.5section.55.6EFFECTIVE DATE.This section is effective the day following final enactment.55.7    Sec. 34. RULEMAKING AUTHORIZED; SUPPLEMENTAL EDUCATION 55.8SERVICE PROVIDERS.55.9    The commissioner of education must amend Minnesota Rules, part 3512.5400, 55.10consistent with the requirements under Minnesota Statutes, chapter 14, to include 55.11specifications that provide the basis for withdrawing Department of Education approval 55.12from supplemental education service providers that fail to increase students' academic 55.13proficiency for two consecutive school years. The amended rule also must clearly indicate:55.14    (1) how the Department of Education will distinguish the effect of supplemental 55.15education from the effect of regular school instruction on students' academic performance; 55.16and55.17    (2) whether the Department of Education will assess effectiveness of the 55.18supplemental education service providers using an absolute measure, such as percent of 55.19"proficient" students or measure individual students' growth toward proficiency over time.55.20EFFECTIVE DATE.This section is effective the day following final enactment.55.21    Sec. 35. RULEMAKING AUTHORITY.55.22    The commissioner of education shall adopt rules for implementing and administering 55.23the graduation-required assessment for diploma (GRAD) in reading and mathematics 55.24and in writing, consistent with Minnesota Statutes, section 120B.30, subdivision 1, and 55.25for public review of the GRAD test. The rules must specify the GRAD requirements 55.26that apply to students in unique circumstances including dual enrolled students, English 55.27language learners, foreign exchange students, home school students, open enrollment 55.28students, Minnesota postsecondary enrollment options students, shared-time students, 55.29transfer students from other states, and district-placed students and students attending 55.30school under a tuition agreement. The rules must establish the criteria for determining 55.31individualized GRAD passing scores for students with an individual education plan or 55.32a Section 504 plan and for using an alternative assessment when a student's individual 55.33education plan team decides to replace the GRAD test.56.1EFFECTIVE DATE.This section is effective the day following final enactment.56.2    Sec. 36. GRANT PROGRAM TO PROMOTE PROFESSIONAL TEACHING 56.3STANDARDS.56.4    Subdivision 1.Establishment.A grant program to promote professional teaching 56.5standards through the National Board for Professional Teaching Standards is established to 56.6provide teachers with the opportunity to receive National Board for Professional Teaching 56.7Standards certification and to reward teachers who have already received this certification.56.8    Subd. 2.Eligibility.An applicant for a grant must:56.9    (1) be a licensed teacher employed in a Minnesota public school;56.10    (2) have a minimum of five school years' classroom teaching experience; and 56.11    (3) demonstrate acceptance by the National Board for Professional Teaching 56.12Standards as a candidate for board certification or as a recipient of board certification.56.13    Subd. 3.Application process.To obtain a grant to participate in the National Board 56.14for Professional Teaching Standards certification process or to receive a reward for already 56.15completing the board certification process, a teacher must submit an application to the 56.16commissioner of education in the form and manner established by the commissioner. The 56.17commissioner shall consult with the Board of Teaching when reviewing the applications. 56.18The commissioner shall also provide program support to assist applicants during the 56.19national board certification process.56.20    Subd. 4.Grant awards; proceeds.(a) The commissioner may award grants of 56.21$1,000 to eligible teachers accepted as candidates for the National Board for Professional 56.22Teaching Standards certification or for national board certification renewal for partial 56.23payment of the teacher's candidate application fee.56.24    (b) The commissioner shall award grants of $3,000 to all eligible teacher applicants 56.25who hold certification from the National Board for Professional Teaching Standards and 56.26$2,000 for renewal of their national board certification.56.27    (c) The commissioner shall also award grants to eligible teachers who have received 56.28National Board for Professional Teaching Standards certification within one year prior to 56.29the date of the teacher's application for a grant to use for educational purposes, including 56.30purchasing instructional materials, equipment, or supplies, and pursuing professional 56.31development opportunities. The commissioner, under this paragraph, may award grants not 56.32to exceed $1,000 after consulting with interested stakeholders regarding the grant amount. 56.33    Sec. 37. WORLD LANGUAGES PILOT PROGRAM GRANTS.57.1    (a) A pilot program awarding five world languages grants to interested and qualified 57.2school sites and school districts is established for fiscal year 2009 to develop and 57.3implement sustainable, high-quality model world languages programs and to enhance 57.4existing world languages programs at various grade levels for students in kindergarten 57.5through grade 12. Program participants must simultaneously support both non-English 57.6language learners in maintaining their native language while mastering English and native 57.7English speakers in learning other languages. 57.8    (b) Interested school sites and school districts must apply to the commissioner of 57.9education in the form and manner the commissioner determines. The application must 57.10indicate whether the applicant intends to develop a new world languages program or 57.11expand an existing world languages program and whether the applicant intends to offer 57.12more intensive programs or programs that are readily accessible to larger numbers of 57.13students. Applicants must agree to disseminate information about their programs to 57.14interested school sites and school districts.57.15    (c) The commissioner must award grants to qualified applicants that satisfy the 57.16requirements in paragraphs (a) and (b). To the extent there are qualified applicants, the 57.17commissioner must award grants to qualified applicants on an equitable geographic 57.18basis to the extent feasible. The commissioner must award three grants to kindergarten 57.19through grade 8 sites, one grant to a qualified site interested in developing or enhancing a 57.20sustainable Mandarin Chinese program, and one grant to an indigenous American Indian 57.21world languages program. Grantees must expend the grant consistent with the content of 57.22their application and this section.57.23    (d) The commissioner shall provide for an evaluation of the grantees to identify 57.24exemplary model world languages programs and the staff development needs of world 57.25languages teachers and report the findings of the evaluation to the education policy and 57.26finance committees of the legislature by February 15, 2010.57.27EFFECTIVE DATE.This section is effective for the 2007-2008 school year.57.28    Sec. 38. BILINGUAL AND MULTILINGUAL CERTIFICATES; DEPARTMENT 57.29OF EDUCATION.57.30    The Department of Education, in consultation with interested stakeholders, must 57.31develop and recommend to the legislature by February 15, 2008, the standards and process 57.32for awarding bilingual and multilingual certificates to those kindergarten through grade 57.3312 students who demonstrate and maintain a requisite level of proficiency in multiple 57.34languages.58.1EFFECTIVE DATE.This section is effective the day following final enactment.58.2    Sec. 39. SCHOOL PERFORMANCE REPORT CARDS; ADVISORY GROUP 58.3RECOMMENDATIONS.58.4    (a) To sustain equity and excellence in education, the Independent Office of 58.5Educational Accountability under Minnesota Statutes, section 120B.31, subdivision 3, 58.6must convene and facilitate an advisory group of curriculum and measurement experts 58.7to consider and recommend how to structure school performance data and school 58.8performance report cards under Minnesota Statutes, section 120B.36, subdivision 1, to 58.9fully, fairly, and accurately report student achievement and emphasize school excellence 58.10under Minnesota's system of educational accountability and public reporting. The advisory 58.11group at least must consider and recommend how to: evaluate student achievement using 58.12multiple measures of growth that take into account student demographic characteristics, 58.13consistent with Minnesota Statutes, section 120B.31, subdivision 4; and identify 58.14outstanding schools based on student achievement and achievement growth and using 58.15multiple performance measures that are objective and consistent with the highest standards 58.16in the field of educational measurements and accountability. The advisory group, at its 58.17discretion, may also consider and make recommendations on other related statewide 58.18accountability and reporting matters.58.19    (b) Advisory group members under paragraph (a) include: two qualified experts in 58.20measurement in education selected by the State Council on Measurement in Education; 58.21one qualified expert in elementary curriculum and one qualified expert in secondary 58.22curriculum selected by the Minnesota Association for Supervision and Curriculum 58.23Development; three regionally diverse school district research and evaluation directors 58.24selected by the Minnesota Assessment Group; one school superintendent selected by the 58.25Minnesota Association of School Administrators; one University of Minnesota faculty 58.26selected by the dean of the College of Education and Human Development; one licensed 58.27teacher selected by Education Minnesota; two parents selected by the Minnesota Parent 58.28Teachers Association with expertise in measurement in education; and the director of 58.29evaluation and testing at the Minnesota Department of Education. Advisory group 58.30members' terms and other advisory group matters are subject to Minnesota Statutes, 58.31section 15.059, subdivision 6. The Independent Office of Educational Accountability 58.32must present the advisory group's recommendations under paragraph (a) to the education 58.33policy and finance committees of the legislature by February 15, 2008. The advisory 58.34group expires February 16, 2008.58.35EFFECTIVE DATE.This section is effective the day following final enactment.59.1    Sec. 40. ADVISORY TASK FORCE ON MINNESOTA AMERICAN INDIAN 59.2TRIBES AND COMMUNITIES AND K-12 STANDARDS-BASED REFORM.59.3    Subdivision 1.Duties. An advisory task force on Minnesota American Indian tribes 59.4and communities and K-12 standards-based reform is established to examine the impact of 59.5state and federal standards-based reform on Minnesota's K-12 students, with particular 59.6attention to the impacts on American Indian students enrolled in Minnesota schools. 59.7The task force, in consultation with American Indian educators, parents, and others who 59.8advocate for American Indian children, must determine if:59.9    (1) state education standards and assessments are appropriate for American Indian 59.10students;59.11    (2) American Indian students are fairly compared; 59.12    (3) American Indian students receive the assistance they need to achieve the state 59.13standards; and 59.14    (4) schools receive financial and technical assistance sufficient to meet the 59.15educational needs of American Indian students.59.16    Subd. 2.Membership.(a) The commissioner of education shall appoint 59.17representatives from the following organizations and agencies to the task force:59.18    (1) Department of Education staff experienced in working with American Indian 59.19students and programs;59.20    (2) Minnesota American Indian tribes and communities;59.21    (3) the Minnesota School Board Association;59.22    (4) school administrators;59.23    (5) Education Minnesota;59.24    (6) the state Board of Teaching;59.25    (7) the Minnesota Council on Indian Affairs; 59.26    (8) postsecondary faculty who serve as instructors in teacher preparation programs; 59.27and59.28    (9) local community service providers who work with Minnesota American Indian 59.29tribes and communities.59.30    (b) After the task force has been convened, the commissioner of education may 59.31appoint additional public members recommended by members of the task force.59.32    Subd. 3.Organization; compensation.(a) The commissioner shall complete 59.33appointments to the task force, under subdivision 2, paragraph (a), by September 1, 2007. 59.34The commissioner of education or the commissioner's designee shall convene the first 59.35meeting of the task force within 30 days after the appointments are completed. The task 59.36force shall select a chair from its membership at the first meeting.60.1    (b) Vacancies, renewal, and compensation of members are as provided in Minnesota 60.2Statutes, section 15.059, subject to the availability of appropriations.60.3    (c) The commissioner of education must provide the task force with administrative 60.4and clerical support.60.5    Subd. 4.Recommendations. By February 15, 2008, the task force must report 60.6recommendations and suggest implementing legislation to the legislative committees and 60.7divisions with jurisdiction over education policy and finance regarding the changes, if 60.8any, to the state's educational performance standards, content requirements, assessments 60.9measures, and teacher preparation programs that will enable Minnesota schools to most 60.10effectively meet the educational needs of American Indian students consistent with 60.11Minnesota Statutes, sections 124D.71 to 124D.82.60.12    Subd. 5.Expiration. This section expires the day following the submission of the 60.13report required by subdivision 4.60.14EFFECTIVE DATE.This section is effective the day following final enactment.60.15    Sec. 41. AMERICAN INDIAN SCHOLARSHIP.60.16    Administration of the American Indian scholarship program under Minnesota 60.17Statutes, section 124D.84, is transferred from the Department of Education to the 60.18Minnesota Office of Higher Education. The director of the Minnesota Office of Higher 60.19Education must contract with at least one knowledgeable person residing in or near the 60.20city of Bemidji to assist students with the scholarships under Minnesota Statutes, section 60.21124D.84, subdivision 1, and with other information about financial aid for which the 60.22students may be eligible.60.23    Sec. 42. APPROPRIATIONS.60.24    Subdivision 1.Minnesota Office of Higher Education.The sums indicated in 60.25this section are appropriated from the general fund to the Minnesota Office of Higher 60.26Education for the fiscal years designated.60.27    Subd. 2.American Indian scholarships.For American Indian scholarships under 60.28Minnesota Statutes, section 124D.84:

60.29$1,950,000.....200860.30$1,950,000.....2009

60.31    Of this appropriation, $75,000 each year is for administration under section 41.60.32    Sec. 43. APPROPRIATIONS.61.1    Subdivision 1.Board of Regents of the University of Minnesota.The sums 61.2indicated in this section are appropriated from the general fund to the Board of Regents of 61.3the University of Minnesota for the fiscal years designated.61.4    Subd. 2.Independent Office of Educational Accountability.For the Independent 61.5Office of Educational Accountability under Minnesota Statutes, section 120B.31, 61.6subdivision 3:

61.7$200,000.....200861.8$200,000.....2009

61.9    This is a onetime appropriation.61.10    Sec. 44. APPROPRIATIONS.61.11    Subdivision 1.Department.The sums indicated in this section are appropriated 61.12from the general fund to the Department of Education for the fiscal years designated.61.13    Subd. 2.Charter school building lease aid.For building lease aid under Minnesota 61.14Statutes, section 124D.11, subdivision 4: 

61.15$31,875,000.....200861.16$36,193,000.....2009

61.17    The 2008 appropriation includes $2,814,000 for 2007 and $29,061,000 for 2008.61.18    The 2009 appropriation includes $3,229,000 for 2008 and $32,964,000 for 2009.61.19    Subd. 3.Charter school startup cost aid.For charter school startup cost aid 61.20under Minnesota Statutes, section 124D.11:

61.21$1,896,000.....200861.22$2,161,000.....2009

61.23    The 2008 appropriation includes $241,000 for 2007 and $1,655,000 for 2008.61.24    The 2009 appropriation includes $183,000 for 2008 and $1,978,000 for 2009.61.25    Subd. 4.Integration aid.For integration aid under Minnesota Statutes, section 61.26124D.86, subdivision 5:

61.27$61,769,000.....200861.28$61,000,000.....2009

61.29    The 2008 appropriation includes $5,824,000 for 2007 and $55,945,000 for 2008.61.30    The 2009 appropriation includes $6,216,000 for 2008 and $54,784,000 for 2009.61.31    Subd. 5.Magnet school program grants.For magnet school program grants:

62.1$750,000.....200862.2$750,000.....2009

62.3    These amounts may be used for magnet school programs under Minnesota Statutes, 62.4section 124D.871.62.5    Up to $100,000 each year is available for site-based decision-making grant proposals 62.6that meet the goals outlined in section 124D.871 under Minnesota Statutes, section 62.7123B.04, subdivision 2, paragraph (g). 62.8    Any balance in the first year does not cancel but is available in the second year. 62.9    Subd. 6.Interdistrict desegregation or integration transportation grants.For 62.10interdistrict desegregation or integration transportation grants under Minnesota Statutes, 62.11section 124D.87:

62.12$9,639,000.....200862.13$11,567,000.....2009

62.14    Subd. 7.Success for the future.For American Indian success for the future grants 62.15under Minnesota Statutes, section 124D.81:

62.16$2,137,000.....200862.17$2,137,000.....2009

62.18    The 2008 appropriation includes $213,000 for 2007 and $1,924,000 for 2008.62.19    The 2009 appropriation includes $213,000 for 2008 and $1,924,000 for 2009.62.20    Subd. 8.American Indian teacher preparation grants.For joint grants to assist 62.21American Indians to become teachers under Minnesota Statutes, section 122A.63:

62.22$190,000.....200862.23$190,000.....2009

62.24    Subd. 9.Tribal contract schools.For tribal contract school aid under Minnesota 62.25Statutes, section 124D.83:

62.26$2,212,000.....200862.27$2,380,000.....2009

62.28    The 2008 appropriation includes $204,000 for 2007 and $2,008,000 for 2008.62.29    The 2009 appropriation includes $223,000 for 2008 and $2,157,000 for 2009.62.30    Subd. 10.Early childhood programs at tribal schools.For early childhood 62.31family education programs at tribal contract schools under Minnesota Statutes, section 62.32124D.83, subdivision 4:

63.1$68,000.....200863.2$68,000.....2009

63.3    Subd. 11.Statewide testing and reporting system.For the statewide testing and 63.4reporting system under Minnesota Statutes, section 120B.30:

63.5$10,150,000.....200863.6$10,150,000.....2009

63.7    Any testing contracts awarded by the commissioner using appropriations in this 63.8subdivision must include as part of that testing contract a method to vertically link testing 63.9questions across grade levels for the purposes of working towards a statewide growth 63.10model.63.11    $1,150,000 each year is for the value-added index assessment model.63.12    Any balance in the first year does not cancel but is available in the second year.63.13    Subd. 12.Examination fees; teacher training and support programs.(a) For 63.14students' advanced placement and international baccalaureate examination fees under 63.15Minnesota Statutes, section 120B.13, subdivision 3, and the training and related costs 63.16for teachers and other interested educators under Minnesota Statutes, section 120B.13, 63.17subdivision 1:

63.18$4,500,000.....200863.19$4,500,000.....2009

63.20    (b) The advanced placement program shall receive 75 percent of the appropriation 63.21each year and the international baccalaureate program shall receive 25 percent of the 63.22appropriation each year. The department, in consultation with representatives of the 63.23advanced placement and international baccalaureate programs selected by the Advanced 63.24Placement Advisory Council and IBMN, respectively, shall determine the amounts of 63.25the expenditures each year for examination fees and training and support programs for 63.26each program.63.27    (c) Notwithstanding Minnesota Statutes, section 120B.13, subdivision 1, at least 63.28$500,000 each year is for teachers to attend subject matter summer training programs 63.29and follow-up support workshops approved by the advanced placement or international 63.30baccalaureate programs. The amount of the subsidy for each teacher attending an 63.31advanced placement or international baccalaureate summer training program or workshop 63.32shall be the same. The commissioner shall determine the payment process and the amount 63.33of the subsidy.63.34    (d) The commissioner shall pay all examination fees for all students of low-income 63.35families under Minnesota Statutes, section 120B.13, subdivision 3, and to the extent 64.1of available appropriations shall also pay examination fees for students sitting for an 64.2advanced placement examination, international baccalaureate examination, or both.64.3    Any balance in the first year does not cancel but is available in the second year.64.4    Subd. 13.Preadvanced placement, advanced placement, international 64.5baccalaureate, and concurrent enrollment programs.For preadvanced placement, 64.6advanced placement, international baccalaureate, and concurrent enrollment programs 64.7under Minnesota Statutes, sections 120B.132 and 124D.091:

64.8$2,000,000.....200864.9$2,000,000.....2009

64.10    Of this amount,  $700,000 each year is for concurrent enrollment program aid 64.11under Minnesota Statutes, section 124D.091. If the appropriation is insufficient, the 64.12commissioner must proportionately reduce the aid payment to each district.64.13    Subd. 14.Collaborative urban educator.For collaborative urban educator grants 64.14under Minnesota Statutes, section 122A.641:

64.15$528,000.....200864.16$528,000.....2009

64.17    $210,000 each year is for the Southeast Asian teacher program at Concordia 64.18University, St. Paul; $159,000 each year is for the collaborative urban educator program at 64.19the University of St. Thomas; and $159,000 each year is for the Center for Excellence in 64.20Urban Teaching at Hamline University. Grant recipients must collaborate with urban and 64.21nonurban school districts.64.22    Any balance in the first year does not cancel but is available in the second year.64.23    Subd. 15.Youth works program.For funding youth works programs under 64.24Minnesota Statutes, sections 124D.37 to 124D.45:

64.25$900,000.....200864.26$900,000.....2009

64.27    A grantee organization may provide health and child care coverage to the dependents 64.28of each participant enrolled in a full-time youth works program to the extent the coverage 64.29is not otherwise available.64.30    Subd. 16.Early childhood literacy programs.For early childhood literacy 64.31programs under Minnesota Statutes, section 119A.50, subdivision 3:

64.32$1,000,000.....200864.33$1,000,000.....2009

65.1    $500,000 each year is for leveraging federal and private funding to support 65.2AmeriCorps members serving in the Minnesota Reading Corps program established by 65.3Serve Minnesota, including costs associated with the training and teaching of early literacy 65.4skills to children age three to grade 3 and the evaluation of the impact of the program 65.5under Minnesota Statutes, section 124D.42, subdivision 8.65.6    $500,000 each year is for grants for early childhood literacy programs under 65.7Minnesota Statutes, section 119A.50, subdivision 3, paragraph (a).65.8    Any balance in the first year does not cancel but is available in the second year.65.9    Subd. 17.St. Croix River Education District.For a grant to the St. Croix River 65.10Education District:

65.11$500,000.....200865.12$500,000.....2009

65.13    These funds must be used to:65.14    (1) deliver standardized research-based professional development in 65.15problem-solving, including response to intervention, scientifically based reading 65.16instruction, and standards-aligned instruction and assessment;65.17    (2) provide coaching to targeted districts throughout the state;65.18    (3) deliver large scale training throughout the state;65.19    (4) provide ongoing technical assistance to schools;65.20    (5) assist with implementing professional development content into higher education 65.21instructional curricula; and65.22    (6) evaluate the effectiveness of project activities.65.23    This is a onetime appropriation.65.24    Subd. 18.Student organizations.For student organizations:

65.25$725,000.....200865.26$725,000.....2009

65.27    $40,000 each year is for student organizations serving health occupations.65.28    $38,000 each year is for student organizations serving service occupations.65.29    $88,000 each year is for student organizations serving trade and industry occupations.65.30    $84,000 each year is for student organizations serving business occupations.65.31    $131,000 each year is for student organizations serving agriculture occupations.65.32    $125,000 each year is for student organizations serving family and consumer science 65.33occupations.65.34    $95,000 each year is for student organizations serving marketing occupations.65.35    Any balance in the first year does not cancel but is available in the second year.66.1    Subd. 19.Educational Planning and Assessment System (EPAS) program.66.2    For the Educational Planning and Assessment System (EPAS) program under Minnesota 66.3Statutes, section 120B.128:

66.4$829,000.....200866.5$829,000.....2009

66.6    Any balance in the first year does not cancel but is available in the second year.66.7    Subd. 20.College-level examination program (CLEP).For the college-level 66.8examination program (CLEP) under Minnesota Statutes, section 120B.131:

66.9$1,650,000.....200866.10$1,650,000.....2009

66.11    Any balance in the first year does not cancel but is available in the second year.66.12    Subd. 21.World Languages grants.For World Languages grants:

66.13$250,000.....200866.14$250,000.....2009

66.15    Any balance in the first year does not cancel but is available in the second year. 66.16This is a onetime appropriation.66.17    Subd. 22.Alternative teacher compensation aid.For alternative teacher 66.18compensation aid under Minnesota Statutes, section 122A.415, subdivision 6:

66.19$39,164,000.....2009

66.20    The 2009 appropriation includes $0 for fiscal year 2008 and $39,164,000 for fiscal 66.21year 2009.66.22    Subd. 23.National Board for Professional Teaching Standards.(a) For 66.23professional teacher licensure:

66.24$250,000.....200866.25$250,000.....2009

66.26    (b) $63,000 of this amount is for grants of $1,000 each to eligible teachers accepted 66.27as candidates for National Board for Professional Teaching Standards certification 66.28according to Minnesota Statutes, section 122A.73, subdivision 4, paragraph (a). The grant 66.29award shall be made to the national board.66.30    (c) $125,000 of this amount is for grants of $2,000 each to eligible teachers 66.31according to Minnesota Statutes, section 122A.73, subdivision 4, paragraph (b). 67.1    (d) $62,000 of this amount is for grants of up to $1,000 each to eligible teachers who 67.2have received National Board for Professional Teaching Standards certification according 67.3to Minnesota Statutes, section 122A.73, subdivision 4, paragraph (c).67.4    (e) Any balance in the first year does not cancel but is available in the second year.67.5    (f) This is a onetime appropriation.67.6    Subd. 24.Mathematics and science; teacher centers.For teacher centers for 67.7mathematics and science teacher development:

67.8$1,500,000.....200867.9$ 1,500,000.....2009

67.10    Any balance in the first year does not cancel but is available in the second year.67.11    This is a onetime appropriation.67.12    Sec. 45. REVISOR'S INSTRUCTION.67.13    (a) The revisor of statutes shall renumber Minnesota Statutes, section 124D.84 67.14to section 136A.126, correct cross-references, and make other necessary corrections to 67.15implement section 41.67.16    (b) In Minnesota Statutes, the revisor of statutes shall codify Minnesota Statutes, 67.17section 124D.10, subdivision 23a, paragraph (b), as Minnesota Statutes, section 124D.10, 67.18subdivision 26.67.19    Sec. 46. REPEALER.67.20Minnesota Statutes 2006, sections 120B.233; 121A.23; and 124D.62, are repealed.67.21ARTICLE 367.22SPECIAL PROGRAMS67.23    Section 1. Minnesota Statutes 2006, section 123B.92, subdivision 1, is amended to read:67.24    Subdivision 1. Definitions. For purposes of this section and section 
         125A.76, the 67.25terms defined in this subdivision have the meanings given to them.67.26    (a) "Actual expenditure per pupil transported in the regular and excess transportation 67.27categories" means the quotient obtained by dividing:67.28    (1) the sum of:67.29    (i) all expenditures for transportation in the regular category, as defined in paragraph 67.30(b), clause (1), and the excess category, as defined in paragraph (b), clause (2), plus67.31    (ii) an amount equal to one year's depreciation on the district's school bus fleet 67.32and mobile units computed on a straight line basis at the rate of 15 percent per year for 68.1districts operating a program under section 
         124D.128 for grades 1 to 12 for all students in 68.2the district and 12-1/2 percent per year for other districts of the cost of the fleet, plus68.3    (iii) an amount equal to one year's depreciation on the district's type three school 68.4buses, as defined in section 
         169.01, subdivision 6, clause (5), which must be used a 68.5majority of the time for pupil transportation purposes, computed on a straight line basis at 68.6the rate of 20 percent per year of the cost of the type three school buses by:68.7    (2) the number of pupils eligible for transportation in the regular category, as defined 68.8in paragraph (b), clause (1), and the excess category, as defined in paragraph (b), clause (2).68.9    (b) "Transportation category" means a category of transportation service provided to 68.10pupils as follows:68.11    (1) Regular transportation is:68.12    (i) transportation to and from school during the regular school year for resident 68.13elementary pupils residing one mile or more from the public or nonpublic school they 68.14attend, and resident secondary pupils residing two miles or more from the public 68.15or nonpublic school they attend, excluding desegregation transportation and noon 68.16kindergarten transportation; but with respect to transportation of pupils to and from 68.17nonpublic schools, only to the extent permitted by sections 
         123B.84 to 
         123B.87;68.18    (ii) transportation of resident pupils to and from language immersion programs;68.19    (iii) transportation of a pupil who is a custodial parent and that pupil's child between 68.20the pupil's home and the child care provider and between the provider and the school, if 68.21the home and provider are within the attendance area of the school;68.22    (iv) transportation to and from or board and lodging in another district, of resident 68.23pupils of a district without a secondary school; and68.24    (v) transportation to and from school during the regular school year required under 68.25subdivision 3 for nonresident elementary pupils when the distance from the attendance 68.26area border to the public school is one mile or more, and for nonresident secondary pupils 68.27when the distance from the attendance area border to the public school is two miles or 68.28more, excluding desegregation transportation and noon kindergarten transportation.68.29    For the purposes of this paragraph, a district may designate a licensed day care 68.30facility, school day care facility, respite care facility, the residence of a relative, or the 68.31residence of a person chosen by the pupil's parent or guardian as the home of a pupil for 68.32part or all of the day, if requested by the pupil's parent or guardian, and if that facility or 68.33residence is within the attendance area of the school the pupil attends.68.34    (2) Excess transportation is:68.35    (i) transportation to and from school during the regular school year for resident 68.36secondary pupils residing at least one mile but less than two miles from the public or 69.1nonpublic school they attend, and transportation to and from school for resident pupils 69.2residing less than one mile from school who are transported because of extraordinary 69.3traffic, drug, or crime hazards; and69.4    (ii) transportation to and from school during the regular school year required under 69.5subdivision 3 for nonresident secondary pupils when the distance from the attendance area 69.6border to the school is at least one mile but less than two miles from the public school 69.7they attend, and for nonresident pupils when the distance from the attendance area border 69.8to the school is less than one mile from the school and who are transported because of 69.9extraordinary traffic, drug, or crime hazards.69.10    (3) Desegregation transportation is transportation within and outside of the district 69.11during the regular school year of pupils to and from schools located outside their normal 69.12attendance areas under a plan for desegregation mandated by the commissioner or under 69.13court order.69.14    (4) "Transportation services for pupils with disabilities" is:69.15    (i) transportation of pupils with disabilities who cannot be transported on a regular 69.16school bus between home or a respite care facility and school;69.17    (ii) necessary transportation of pupils with disabilities from home or from school to 69.18other buildings, including centers such as developmental achievement centers, hospitals, 69.19and treatment centers where special instruction or services required by sections 
         125A.0369.20to 
         125A.24, 
         125A.26 to 
         125A.48, and 
         125A.65 are provided, within or outside the district 69.21where services are provided;69.22    (iii) necessary transportation for resident pupils with disabilities required by sections 69.23125A.12
         , and 
         125A.26 to 
         125A.48;69.24    (iv) board and lodging for pupils with disabilities in a district maintaining special 69.25classes;69.26    (v) transportation from one educational facility to another within the district for 69.27resident pupils enrolled on a shared-time basis in educational programs, and necessary 69.28transportation required by sections 
         125A.18, and 
         125A.26 to 
         125A.48, for resident pupils 69.29with disabilities who are provided special instruction and services on a shared-time basis 69.30or if resident pupils are not transported, the costs of necessary travel between public 69.31and private schools or neutral instructional sites by essential personnel employed by the 69.32district's program for children with a disability;69.33    (vi) transportation for resident pupils with disabilities to and from board and lodging 69.34facilities when the pupil is boarded and lodged for educational purposes; and69.35    (vii) services described in clauses (i) to (vi), when provided for pupils with 69.36disabilities in conjunction with a summer instructional program that relates to the pupil's 70.1individual education plan or in conjunction with a learning year program established 70.2under section 
         124D.128.70.3    For purposes of computing special education base revenue initial aid under section 70.4125A.76, subdivision 2
         , the cost of providing transportation for children with disabilities 70.5includes (A) the additional cost of transporting a homeless student from a temporary 70.6nonshelter home in another district to the school of origin, or a formerly homeless student 70.7from a permanent home in another district to the school of origin but only through the end 70.8of the academic year; and (B) depreciation on district-owned school buses purchased after 70.9July 1, 2005, and used primarily for transportation of pupils with disabilities, calculated 70.10according to paragraph (a), clauses (ii) and (iii). Depreciation costs included in the 70.11disabled transportation category must be excluded in calculating the actual expenditure 70.12per pupil transported in the regular and excess transportation categories according to 70.13paragraph (a).70.14    (5) "Nonpublic nonregular transportation" is:70.15    (i) transportation from one educational facility to another within the district for 70.16resident pupils enrolled on a shared-time basis in educational programs, excluding 70.17transportation for nonpublic pupils with disabilities under clause (4);70.18    (ii) transportation within district boundaries between a nonpublic school and a 70.19public school or a neutral site for nonpublic school pupils who are provided pupil support 70.20services pursuant to section 
         123B.44; and70.21    (iii) late transportation home from school or between schools within a district for 70.22nonpublic school pupils involved in after-school activities.70.23    (c) "Mobile unit" means a vehicle or trailer designed to provide facilities for 70.24educational programs and services, including diagnostic testing, guidance and counseling 70.25services, and health services. A mobile unit located off nonpublic school premises is a 70.26neutral site as defined in section 
         123B.41, subdivision 13.70.27EFFECTIVE DATE.This section is effective for revenue for fiscal year 2008.70.28    Sec. 2. Minnesota Statutes 2006, section 124D.454, subdivision 2, is amended to read:70.29    Subd. 2. Definitions. For the purposes of this section, the definitions in this 70.30subdivision apply.70.31    (a) "Base year" means the second fiscal year preceding the fiscal year for which 70.32aid will be paid.70.33    (b) "Basic revenue" has the meaning given it in section 
         126C.10, subdivision 2. 70.34For the purposes of computing basic revenue pursuant to this section, each child with a 70.35disability shall be counted as prescribed in section 
         126C.05, subdivision 1. 71.1    (c) "Average daily membership" has the meaning given it in section 126C.05. 71.2    (d) "Program growth factor" means 1.00 for fiscal year 1998 and later. 71.3    (e) "Aid percentage factor" means 100 percent for fiscal year 2000 and later.71.4    (f)(b) "Essential personnel" means a licensed teacher, licensed support services 71.5staff person, paraprofessional providing direct services to students, or licensed personnel 71.6under subdivision 12. This definition is not intended to change or modify the definition of 71.7essential employee in chapter 179A.71.8EFFECTIVE DATE.This section is effective for revenue for fiscal year 2008.71.9    Sec. 3. Minnesota Statutes 2006, section 124D.454, subdivision 3, is amended to read:71.10    Subd. 3. Base revenue Initial aid.(a) The transition-disabled program base revenue71.11initial aid equals the sum of the following amounts computed using basecurrent year data:71.12    (1) 68 percent of the salary of each essential licensed person or approved 71.13paraprofessional who provides direct instructional services to students employed during 71.14that fiscal year for services rendered in that district's transition program for children with a 71.15disability;71.16    (2) 47 percent of the costs of necessary equipment for transition programs for 71.17children with a disability;71.18    (3) 47 percent of the costs of necessary travel between instructional sites by transition 71.19program teachers of children with a disability but not including travel to and from local, 71.20regional, district, state, or national career and technical student organization meetings;71.21    (4) 47 percent of the costs of necessary supplies for transition programs for children 71.22with a disability but not to exceed an average of $47 in any one school year for each child 71.23with a disability receiving these services;71.24    (5) for transition programs for children with disabilities provided by a contract 71.25approved by the commissioner with public, private, or voluntary agencies other than a 71.26Minnesota school district or cooperative center, in place of programs provided by the 71.27district, 52 percent of the difference between the amount of the contract and the basic 71.28revenue of the district for that pupil for the fraction of the school day the pupil receives 71.29services under the contract;71.30    (6) for transition programs for children with disabilities provided by a contract 71.31approved by the commissioner with public, private, or voluntary agencies other than a 71.32Minnesota school district or cooperative center, that are supplementary to a full educational 71.33program provided by the school district, 52 percent of the amount of the contract; and71.34    (7) for a contract approved by the commissioner with another Minnesota school 71.35district or cooperative center for vocational evaluation services for children with a 72.1disability for children that are not yet enrolled in grade 12, 52 percent of the amount 72.2of the contract.72.3    (b) If requested by a school district for transition programs during the base year for 72.4less than the full school year, the commissioner may adjust the base revenue to reflect 72.5the expenditures that would have occurred during the base year had the program been 72.6operated for the full year.72.7EFFECTIVE DATE.This section is effective for revenue for fiscal year 2008.72.8    Sec. 4. Minnesota Statutes 2006, section 125A.11, subdivision 1, is amended to read:72.9    Subdivision 1. Nonresident tuition rate; other costs. (a) For fiscal year 2006, 72.10when a school district provides instruction and services outside the district of residence, 72.11board and lodging, and any tuition to be paid, shall be paid by the district of residence. 72.12The tuition rate to be charged for any child with a disability, excluding a pupil for whom 72.13tuition is calculated according to section 
         127A.47, subdivision 7, paragraph (d), must be 72.14the sum of (1) the actual cost of providing special instruction and services to the child 72.15including a proportionate amount for special transportation and unreimbursed building 72.16lease and debt service costs for facilities used primarily for special education, plus (2) 72.17the amount of general education revenue and referendum aid attributable to the pupil, 72.18minus (3) the amount of special education aid for children with a disability received 72.19on behalf of that child, minus (4) if the pupil receives special instruction and services 72.20outside the regular classroom for more than 60 percent of the school day, the amount of 72.21general education revenue and referendum aid, excluding portions attributable to district 72.22and school administration, district support services, operations and maintenance, capital 72.23expenditures, and pupil transportation, attributable to that pupil for the portion of time 72.24the pupil receives special instruction and services outside of the regular classroom. If 72.25the boards involved do not agree upon the tuition rate, either board may apply to the 72.26commissioner to fix the rate. Notwithstanding chapter 14, the commissioner must then set 72.27a date for a hearing or request a written statement from each board, giving each board 72.28at least ten days' notice, and after the hearing or review of the written statements the 72.29commissioner must make an order fixing the tuition rate, which is binding on both school 72.30districts. General education revenue and referendum equalization aid attributable to a 72.31pupil must be calculated using the resident district's average general education revenue 72.32and referendum revenue equalization aid per adjusted pupil unit.72.33    (b) For fiscal year 2007 and later, when a school district provides special instruction 72.34and services for a pupil with a disability as defined in section 
         125A.02 outside the district 72.35of residence, excluding a pupil for whom an adjustment to special education aid is 73.1calculated according to section 
         127A.47, subdivision 7, paragraph (e), special education 73.2aid paid to the resident district must be reduced by an amount equal to (1) the actual 73.3cost of providing special instruction and services to the pupil, including a proportionate 73.4amount for special transportation and unreimbursed building lease and debt service costs 73.5for facilities used primarily for special education, plus (2) the amount of general education 73.6revenue and referendum equalization aid attributable to that pupil, calculated using the 73.7resident district's average general education revenue and referendum equalization aid 73.8per adjusted pupil unit excluding basic skills revenue, elementary sparsity revenue and 73.9secondary sparsity revenue, minus (3) the amount of special education aid for children 73.10with a disability received on behalf of that child, minus (4) if the pupil receives special 73.11instruction and services outside the regular classroom for more than 60 percent of the 73.12school day, the amount of general education revenue and referendum equalization aid, 73.13excluding portions attributable to district and school administration, district support 73.14services, operations and maintenance, capital expenditures, and pupil transportation, 73.15attributable to that pupil for the portion of time the pupil receives special instruction and 73.16services outside of the regular classroom., general education revenue and referendum aid 73.17attributable to a pupil must be calculated using the resident district's average general 73.18education revenue and referendum equalization aid per adjusted pupil unit excluding 73.19basic skills revenue, elementary sparsity revenue and secondary sparsity revenue and the 73.20serving district's basic skills revenue, elementary sparsity revenue and secondary sparsity 73.21revenue per adjusted pupil unit. Notwithstanding clauses (1) and (4), for pupils served by 73.22a cooperative unit without a fiscal agent school district, the general education revenue and 73.23referendum equalization aid attributable to a pupil must be calculated using the resident 73.24district's average general education revenue and referendum equalization aid excluding 73.25elementary sparsity revenue and secondary sparsity revenue. Special education aid paid to 73.26the district or cooperative providing special instruction and services for the pupil must be 73.27increased by the amount of the reduction in the aid paid to the resident district. Amounts 73.28paid to cooperatives under this subdivision and section 
         127A.47, subdivision 7, shall be 73.29recognized and reported as revenues and expenditures on the resident school district's 73.30books of account under sections 
         123B.75 and 
         123B.76. If the resident district's special 73.31education aid is insufficient to make the full adjustment, the remaining adjustment shall be 73.32made to other state aid due to the district.73.33    (c) Notwithstanding paragraphs (a) and (b) and section 
         127A.47, subdivision 7, 73.34paragraphs (d) and (e), a charter school where more than 30 percent of enrolled students 73.35receive special education and related services, a  site approved under section 125A.515, 73.36an intermediate district, a special education cooperative, or a school district that served 74.1as the applicant agency for a group of school districts for federal special education aids 74.2for fiscal year 2006 may apply to the commissioner for authority to charge the resident 74.3district an additional amount to recover any remaining unreimbursed costs of serving 74.4pupils with a disability. The application must include a description of the costs and the 74.5calculations used to determine the unreimbursed portion to be charged to the resident 74.6district. Amounts approved by the commissioner under this paragraph must be included 74.7in the tuition billings or aid adjustments under paragraph (a) or (b), or section 
         127A.47, 74.8subdivision 7
         , paragraph (d) or (e), as applicable.74.9    (d) For purposes of this subdivision and section 
         127A.47, subdivision 7, paragraphs 74.10(d) and (e), "general education revenue and referendum equalization aid" means the sum 74.11of the general education revenue according to section 
         126C.10, subdivision 1, excluding 74.12alternative teacher compensation revenue, plus the referendum equalization aid according 74.13to section 
         126C.17, subdivision 7, as adjusted according to section 
         127A.47, subdivision 74.147, paragraphs (a) to (c).74.15EFFECTIVE DATE.This section is effective the day following final enactment.74.16    Sec. 5. Minnesota Statutes 2006, section 125A.13, is amended to read:74.17125A.13 SCHOOL OF PARENTS' CHOICE.74.18    (a) Nothing in this chapter must be construed as preventing parents of a child with a 74.19disability from sending the child to a school of their choice, if they so elect, subject to 74.20admission standards and policies adopted according to sections 
         125A.62 to 
         125A.64 and 74.21125A.66
          to 
         125A.73, and all other provisions of chapters 120A to 129C. 74.22    (b) The parent of a student with a disability not yet enrolled in kindergarten and not 74.23open enrolled in a nonresident district may request that the resident district enter into a 74.24tuition agreement with the nonresident district if: 74.25    (1) the child is enrolled in a Head Start program or a licensed child care setting in 74.26the nonresident district; and 74.27    (2) the child can be served in the same setting as other children in the nonresident 74.28district with the same level of disability.74.29    Sec. 6. Minnesota Statutes 2006, section 125A.14, is amended to read:74.30125A.14 SUMMER PROGRAMS EXTENDED SCHOOL YEAR.74.31    A district may provide summer programsextended school year services for children 74.32with a disability living within the district and nonresident children temporarily placed in 74.33the district pursuant to section 
         125A.15 or 
         125A.16. Prior to March 31 or 30 days after the 75.1child with a disability is placed in the district, whichever is later, the providing district 75.2shall give notice to the district of residence of any nonresident children temporarily placed 75.3in the district pursuant to section 
         125A.15 or 
         125A.16, of its intention to provide these 75.4programs. Notwithstanding any contrary provisions in sections 
         125A.15 and 
         125A.16, the 75.5district providing the special instruction and services must apply for special education 75.6aid for the summer program extended school year services. The unreimbursed actual cost 75.7of providing the program for nonresident children with a disability, including the cost of 75.8board and lodging, may be billed to the district of the child's residence and must be paid 75.9by the resident district. Transportation costs must be paid by the district responsible 75.10for providing transportation pursuant to section 
         125A.15 or 
         125A.16 and transportation 75.11aid must be paid to that district. 75.12    Sec. 7. Minnesota Statutes 2006, section 125A.63, is amended by adding a subdivision 75.13to read:75.14    Subd. 5.Statewide hearing loss early education intervention coordinator.(a) 75.15The coordinator shall:75.16    (1) collaborate with the early hearing detection and intervention coordinator for the 75.17Department of Health, the director of the Department of Education Resource Center for 75.18Deaf and Hard-of-Hearing, and the Department of Health Early Hearing Detection and 75.19Intervention Advisory Council;75.20    (2) coordinate and support Department of Education early hearing detection and 75.21intervention teams;75.22    (3) leverage resources by serving as a liaison between interagency early intervention 75.23committees; part C coordinators from the Departments of Education, Health, and 75.24Human Services; Department of Education regional low-incidence facilitators; service 75.25coordinators from school districts; Minnesota children with special health needs in the 75.26Department of Health; public health nurses; child find; Department of Human Services 75.27Deaf and Hard-of-Hearing Services Division; and others as appropriate;75.28    (4) identify, support, and promote culturally appropriate and evidence-based early 75.29intervention practices for infants with hearing loss, and provide training, outreach, and use 75.30of technology to increase consistency in statewide service provision;75.31    (5) identify culturally appropriate specialized reliable and valid instruments to assess 75.32and track the progress of children with hearing loss and promote their use;75.33    (6) ensure that early childhood providers, parents, and members of the individual 75.34family service and intervention plan are provided with child progress data resulting from 75.35specialized assessments;76.1    (7) educate early childhood providers and teachers of the deaf and hard-of-hearing 76.2to use developmental data from specialized assessments to plan and adjust individual 76.3family service plans; and76.4    (8) make recommendations that would improve educational outcomes to the early 76.5hearing detection and intervention committee, the commissioners of education and health, 76.6the Minnesota Commission Serving Deaf and Hard-of-Hearing People, and the advisory 76.7council of the Minnesota Department of Education Resource Center for the Deaf and 76.8Hard-of-Hearing.76.9    (b) The Department of Education must provide aggregate data regarding outcomes 76.10of deaf and hard-of-hearing children who receive early intervention services within the 76.11state in accordance with the state performance plan.76.12    Sec. 8. Minnesota Statutes 2006, section 125A.75, subdivision 1, is amended to read:76.13    Subdivision 1. Travel aid. The state must pay each district one-half of the sum 76.14actually expended by a district, based on mileage, for necessary travel of essential 76.15personnel providing home-based or community-based services to children with a disability 76.16under age five and their families.76.17    Sec. 9. Minnesota Statutes 2006, section 125A.75, subdivision 4, is amended to read:76.18    Subd. 4. Program and aid approval. Before June 1 of each year, each district 76.19providing special instruction and services to children with a disability, including children 76.20eligible for Part C, as defined in section 125A.02, subdivision 1, and section 125A.27, 76.21subdivision 8,  must submit to the commissioner an application for approval of these 76.22programs and their budgets for the next fiscal year. The application must include an 76.23enumeration of the costs proposed as eligible for state aid pursuant to this section and of 76.24the estimated number and grade level of children with a disability in the district who will 76.25receive special instruction and services during the regular school year and in summer 76.26school programs during the next fiscal year. The application must also include any 76.27other information deemed necessary by the commissioner for the calculation of state aid 76.28and for the evaluation of the necessity of the program, the necessity of the personnel 76.29to be employed in the program, for determining the amount which the program will 76.30receive from grants from federal funds, or special grants from other state sources, and 76.31the program's compliance with the rules and standards of the Department of Education. 76.32The commissioner shall review each application to determine whether the program and 76.33the personnel to be employed in the program are actually necessary and essential to meet 76.34the district's obligation to provide special instruction and services to children with a 77.1disability pursuant to sections 
         125A.03 to 
         125A.24, 
         125A.259 to 
         125A.48, and 
         125A.65. 77.2The commissioner shall not approve aid pursuant to this section for any program or for 77.3the salary of any personnel determined to be unnecessary or unessential on the basis of 77.4this review. The commissioner may withhold all or any portion of the aid for programs 77.5which receive grants from federal funds, or special grants from other state sources. By 77.6August 31 the commissioner shall approve, disapprove, or modify each application, and 77.7notify each applying district of the action and of the estimated amount of aid for the 77.8programs. The commissioner shall provide procedures for districts to submit additional 77.9applications for program and budget approval during the fiscal year, for programs needed 77.10to meet any substantial changes in the needs of children with a disability in the district. 77.11Notwithstanding the provisions of section 
         127A.42, the commissioner may modify or 77.12withdraw the program or aid approval and withhold aid pursuant to this section without 77.13proceeding according to section 
         127A.42 at any time the commissioner determines that 77.14the program does not comply with rules of the Department of Education or that any facts 77.15concerning the program or its budget differ from the facts in the district's approved 77.16application. 77.17EFFECTIVE DATE.This section is effective for revenue for fiscal year 2008.77.18    Sec. 10. Minnesota Statutes 2006, section 125A.75, is amended by adding a 77.19subdivision to read:77.20    Subd. 9.Litigation costs; annual report.(a) By November 30 of each year, 77.21a school district must annually report the district's special education litigation costs, 77.22including attorney fees and costs of due process hearings, to the commissioner of 77.23education, consistent with the Uniform Financial Accounting and Reporting Standards.77.24    (b) By January 15 of each year, the commissioner shall report school district special 77.25education litigation costs to the house of representatives and the senate committees having 77.26jurisdiction over kindergarten through grade 12 education finance.77.27    Sec. 11. Minnesota Statutes 2006, section 125A.76, subdivision 1, is amended to read:77.28    Subdivision 1. Definitions. For the purposes of this section, the definitions in this 77.29subdivision apply.77.30    (a) "Base year" for fiscal year 1998 and later fiscal years means the second fiscal 77.31year preceding the fiscal year for which aid will be paid.77.32    (b) "Basic revenue" has the meaning given it in section 
         126C.10, subdivision 2. 77.33For the purposes of computing basic revenue pursuant to this section, each child with a 77.34disability shall be counted as prescribed in section 
         126C.05, subdivision 1. 78.1    (c)(b) "Essential personnel" means teachers, cultural liaisons, related services, and 78.2support services staff providing direct services to students. Essential personnel may also 78.3include special education paraprofessionals or clericals providing support to teachers and 78.4students by preparing paperwork and making arrangements related to special education 78.5compliance requirements, including parent meetings and individual education plans.78.6    (d)(c) "Average daily membership" has the meaning given it in section 
         126C.05. 78.7    (e)(d) "Program growth factor" means 
         1.046 for fiscal year 2003, and 1.0 for fiscal 78.8year 20042012 and later. 78.9EFFECTIVE DATE.This section is effective for revenue for fiscal year 2008.78.10    Sec. 12. Minnesota Statutes 2006, section 125A.76, subdivision 2, is amended to read:78.11    Subd. 2. Special education base revenue initial aid.(a) The special education 78.12base revenueinitial aid equals the sum of the following amounts computed using base78.13current year data:78.14    (1) 68 percent of the salary of each essential person employed in the district's 78.15program for children with a disability during the fiscal year, whether the person is 78.16employed by one or more districts or a Minnesota correctional facility operating on a 78.17fee-for-service basis;78.18    (2) for the Minnesota State Academy for the Deaf or the Minnesota State Academy 78.19for the Blind, 68 percent of the salary of each instructional aide assigned to a child 78.20attending the academy, if that aide is required by the child's individual education plan;78.21    (3) for special instruction and services provided to any pupil by contracting with 78.22public, private, or voluntary agencies other than school districts, in place of special 78.23instruction and services provided by the district, 52 percent of the difference between 78.24the amount of the contract and the amount of the basic revenue, as defined in section 78.25126C.10, subdivision 2, special education aid, and any other aid earned on behalf of 78.26the childthe general education revenue, excluding basic skills revenue and alternative 78.27teacher compensation revenue, and referendum equalization aid attributable to a pupil, 78.28calculated using the resident district's average general education revenue and referendum 78.29equalization aid per adjusted pupil unit for the fraction of the school day the pupil receives 78.30services under the contract. This includes children who are residents of the state, receive 78.31services under this subdivision and subdivision 1, and are placed in a care and treatment 78.32facility by court action in a state that does not have a reciprocity agreement with the 78.33commissioner under section 125A.155 as provided for in section 125A.79, subdivision 8; 78.34    (4) for special instruction and services provided to any pupil by contracting for 78.35services with public, private, or voluntary agencies other than school districts, that are 79.1supplementary to a full educational program provided by the school district, 52 percent of 79.2the amount of the contract for that pupil;79.3    (5) for supplies and equipment purchased or rented for use in the instruction of 79.4children with a disability, an amount equal to 47 percent of the sum actually expended by 79.5the district, or a Minnesota correctional facility operating on a fee-for-service basis, but 79.6not to exceed an average of $47 in any one school year for each child with a disability 79.7receiving instruction;79.8    (6) for fiscal years 1997 and later, special education base revenue shall include 79.9amounts under clauses (1) to (5) for special education summer programs provided during 79.10the base year for that fiscal year; and79.11    (7) for fiscal years 1999 and later, the cost of providing transportation services for 79.12children with disabilities under section 
         123B.92, subdivision 1, paragraph (b), clause 79.13(4); and79.14    (8) the district's transition-disabled program initial aid according to section 79.15124D.454, subdivision 3. 79.16    The department shall establish procedures through the uniform financial accounting 79.17and reporting system to identify and track all revenues generated from third-party billings 79.18as special education revenue at the school district level; include revenue generated from 79.19third-party billings as special education revenue in the annual cross-subsidy report; and 79.20exclude third-party revenue from calculation of excess cost aid to the districts.79.21    (b) If requested by a school district operating a special education program during 79.22the base year for less than the full fiscal year, or a school district in which is located a 79.23Minnesota correctional facility operating on a fee-for-service basis for less than the full 79.24fiscal year, the commissioner may adjust the base revenue to reflect the expenditures 79.25that would have occurred during the base year had the program been operated for the 79.26full fiscal year.79.27    (c) Notwithstanding paragraphs (a) and (b), the portion of a school district's base 79.28revenue attributable to a Minnesota correctional facility operating on a fee-for-service 79.29basis during the facility's first year of operating on a fee-for-service basis shall be 79.30computed using current year data.79.31EFFECTIVE DATE.This section is effective for revenue for fiscal year 2008.79.32    Sec. 13. Minnesota Statutes 2006, section 125A.76, subdivision 4, is amended to read:79.33    Subd. 4. State total special education aid.The state total special education aid 79.34for fiscal year 2004 equals $530,642,000. The state total special education aid for fiscal 79.35year 2005 equals $529,164,000 $529,247,000 for fiscal year 2007, $709,698,000 for 80.1fiscal year 2008, $742,334,000 for fiscal year 2009, $778,780,000 for fiscal year 2010, 80.2and $817,167,000 for fiscal year 2011. The state total special education aid for later 80.3fiscal years equals:80.4    (1) the state total special education aid for the preceding fiscal year; times80.5    (2) the program growth factor; times80.6    (3) the greater of one, or the ratio of the state total average daily membership for the 80.7current fiscal year to the state total average daily membership for the preceding fiscal year.80.8EFFECTIVE DATE.This section is effective for revenue for fiscal year 2008.80.9    Sec. 14. Minnesota Statutes 2006, section 125A.76, subdivision 5, is amended to read:80.10    Subd. 5. School district special education aid.(a) A school district's special 80.11education aid for fiscal year 20002008 and later equals the state total special education 80.12aid, minus the amount determined under paragraphs (b) and (c), times the ratio of the 80.13district's adjustedinitial special education base revenueaid to the state total adjusted80.14initial special education base revenue aid. If the commissioner of education modifies 80.15its rules for special education in a manner that increases a district's special education 80.16obligations or service requirements, the commissioner shall annually increase each 80.17district's special education aid by the amount necessary to compensate for the increased 80.18service requirements. The additional aid equals the cost in the current year attributable to 80.19rule changes not reflected in the computation of special education base revenue, multiplied 80.20by the appropriate percentages from subdivision 2.80.21    (b) Notwithstanding paragraph (a), if the special education base revenue for a 80.22district equals zero, the special education aid equals the amount computed according 80.23to subdivision 2 using current year data.80.24    (c) Notwithstanding paragraphs (a) and (b), if the special education base revenue for 80.25a district is greater than zero, and the base year amount for the district under subdivision 80.262, paragraph (a), clause (7), equals zero, the special education aid equals the sum of the 80.27amount computed according to paragraph (a), plus the amount computed according to 80.28subdivision 2, paragraph (a), clause (7), using current year data.80.29    (d) A charter school under section 124D.10 shall generate state special education 80.30aid based on current year expenditures for its first four years of operation and only in its 80.31fifth and later years shall paragraphs (a), (b), and (c) apply. 80.32EFFECTIVE DATE.This section is effective for revenue for fiscal year 2008.81.1    Sec. 15. Minnesota Statutes 2006, section 125A.76, is amended by adding a 81.2subdivision to read:81.3    Subd. 8.Special education forecast maintenance of effort.(a) If, on the basis of 81.4a forecast of general fund revenues and expenditures under section 16A.103, the state's 81.5expenditures for special education and related services for children with disabilities 81.6from nonfederal sources for a fiscal year, including special education aid under section 81.7125A.76; special education excess cost aid under section 125A.76, subdivision 7; travel 81.8for home-based services under section 125A.75, subdivision 1; aid for students with 81.9disabilities under section 125A.75, subdivision 3; court-placed special education under 81.10section 125A.79, subdivision 4; out-of-state tuition under section 125A.79, subdivision 8; 81.11and direct expenditures by state agencies are projected to be less than the amount required 81.12to meet federal special education maintenance of effort, the additional amount required 81.13to meet federal special education maintenance of effort is added to the state total special 81.14education aid in section 125A.76, subdivision 4.81.15    (b) If, on the basis of a forecast of general fund revenues and expenditures under 81.16section 16A.103, expenditures in the programs in paragraph (a) are projected to be greater 81.17than previously forecast for an enacted budget, and an addition to state total special 81.18education aid has been made under paragraph (a), the state total special education aid 81.19must be reduced by the lesser of the amount of the expenditure increase or the amount 81.20previously added to state total special education aid in section 125A.76, subdivision 4.81.21    (c) For the purpose of this section, "previously forecast for an enacted budget" means 81.22the allocation of funding for these programs in the most recent forecast of general fund 81.23revenues and expenditures or the act appropriating money for these programs, whichever 81.24occurred most recently. It does not include planning estimates for a future biennium.81.25    (d) If the amount of special education aid is adjusted in accordance with this 81.26subdivision, the commissioner of education shall notify the chairs of the legislative 81.27committees having jurisdiction over kindergarten through grade 12 education regarding 81.28the amount of the adjustment and provide an explanation of the federal maintenance of 81.29effort requirements.81.30EFFECTIVE DATE.This section is effective for fiscal year 2008.81.31    Sec. 16. Minnesota Statutes 2006, section 125A.78, is amended to read:81.32125A.78 ALTERNATIVE DELIVERY BASE REVENUEINITIAL AID 81.33ADJUSTMENT.82.1    Subdivision 1. Eligibility. A district is eligible for an alternative delivery base 82.2revenueinitial aid adjustment if the commissioner has approved the application of the 82.3district according to section 
         125A.50. 82.4    Subd. 2. Base revenueInitial aid adjustment. For the third fiscal year after 82.5approval of a district's application, and thereafter, the special education base revenueinitial 82.6aid under section 
         125A.76, subdivision 1, must be computed based on activities defined as 82.7reimbursable under Department of Education rules for special education and nonspecial 82.8education students, and additional activities as detailed and approved by the commissioner. 82.9    Subd. 3. Use of revenue. Revenue under section 
         125A.76 shall be used to 82.10implement the approved program. 82.11    Sec. 17. Minnesota Statutes 2006, section 125A.79, subdivision 1, is amended to read:82.12    Subdivision 1. Definitions. For the purposes of this section, the definitions in this 82.13subdivision apply.82.14    (a) "Unreimbursed special education cost" means the sum of the following:82.15    (1) expenditures for teachers' salaries, contracted services, supplies, equipment, and 82.16transportation services eligible for revenue under section 
         125A.76; plus82.17    (2) expenditures for tuition bills received under sections 
         125A.03 to 
         125A.24 and 82.18125A.65
          for services eligible for revenue under section 
         125A.76, subdivision 2; minus82.19    (3) revenue for teachers' salaries, contracted services, supplies, and equipment, and 82.20transportation services under section 
         125A.76; minus82.21    (4) tuition receipts under sections 
         125A.03 to 
         125A.24 and 
         125A.65 for services 82.22eligible for revenue under section 
         125A.76, subdivision 2.82.23    (b) "General revenue" means the sum of the general education revenue according to 82.24section 
         126C.10, subdivision 1, excluding alternative teacher compensation revenue, plus 82.25the total qualifying referendum revenue specified in paragraph (e) minus transportation 82.26sparsity revenue minus total operating capital revenue.82.27    (c) "Average daily membership" has the meaning given it in section 
         126C.05.82.28    (d) "Program growth factor" means 
         1.02 for fiscal year 2003, and 1.0 for fiscal 82.29year 20042012 and later.82.30    (e) "Total qualifying referendum revenue" means two-thirds of the district's total 82.31referendum revenue as adjusted according to section 
         127A.47, subdivision 7, paragraphs 82.32(a) to (c), for fiscal year 2006, one-third of the district's total referendum revenue for fiscal 82.33year 2007, and none of the district's total referendum revenue for fiscal year 2008 and later.82.34    Sec. 18. Minnesota Statutes 2006, section 125A.79, subdivision 5, is amended to read:83.1    Subd. 5. Initial excess cost aid. For fiscal years 20022008 and later, a district's 83.2initial excess cost aid equals the greatestgreater of:83.3    (1) 75 percent of the difference between (i) the district's unreimbursed special 83.4education cost and (ii) 
         4.36 percent of the district's general revenue;  or83.5    (2) 70 percent of the difference between (i) the increase in the district's unreimbursed 83.6special education cost between the base year as defined in section 125A.76, subdivision 1, 83.7and the current year and (ii) 1.6 percent of the district's general revenue; or83.8    (3) zero.83.9    Sec. 19. Minnesota Statutes 2006, section 125A.79, subdivision 6, is amended to read:83.10    Subd. 6. State total special education excess cost aid. The state total special 83.11education excess cost aid for fiscal year 2005 equals $91,811,000 $104,700,000 for 83.12fiscal year 2007, $122,586,000 for fiscal year 2008, $125,302,000 for fiscal year 2009, 83.13$125,477,000 for fiscal year 2010, and $125,858,000 for fiscal year 2011. The state 83.14total special education excess cost aid equals $103,600,000 for fiscal year 2006 and 83.15$104,700,000 for fiscal year 2007. The state total special education excess cost aid for 83.16fiscal year 2008 and later fiscal years equals:83.17    (1) the state total special education excess cost aid for the preceding fiscal year; times83.18    (2) the program growth factor; times83.19    (3) the greater of one, or the ratio of the state total average daily membership for the 83.20current fiscal year to the state total average daily membership for the preceding fiscal year.83.21EFFECTIVE DATE.This section is effective for revenue for fiscal year 2008.83.22    Sec. 20. Minnesota Statutes 2006, section 125A.79, subdivision 8, is amended to read:83.23    Subd. 8. Out-of-state tuition. For children who are residents of the state, receive 83.24services under section 
         125A.76, subdivisions 1 and 2, and are placed in a care and 83.25treatment facility by court action in a state that does not have a reciprocity agreement 83.26with the commissioner under section 
         125A.155, the resident school district shall submit 83.27the balance of the tuition bills, minus the amount of the basic revenue, as defined by 83.28section 126C.10, subdivision 2, of the district for the child and the general education 83.29revenue, excluding basic skills revenue and alternative teacher compensation revenue, 83.30and referendum equalization aid attributable to the pupil, calculated using the resident 83.31district's average general education revenue and referendum equalization aid per adjusted 83.32pupil unit minus  the special education aid, and any other aid earned on behalf of the child83.33contracted services initial revenue attributable to the pupil. 84.1    Sec. 21. Minnesota Statutes 2006, section 127A.47, subdivision 7, is amended to read:84.2    Subd. 7. Alternative attendance programs. The general education aid and special 84.3education aid for districts must be adjusted for each pupil attending a nonresident district 84.4under sections 
         123A.05 to 
         123A.08, 
         124D.03, 
         124D.06, 
         124D.08, and 
         124D.68. The 84.5adjustments must be made according to this subdivision.84.6    (a) General education aid paid to a resident district must be reduced by an amount 84.7equal to the referendum equalization aid attributable to the pupil in the resident district.84.8    (b) General education aid paid to a district serving a pupil in programs listed in this 84.9subdivision must be increased by an amount equal to the referendum equalization aid 84.10attributable to the pupil in the nonresident district.84.11    (c) If the amount of the reduction to be made from the general education aid of the 84.12resident district is greater than the amount of general education aid otherwise due the 84.13district, the excess reduction must be made from other state aids due the district.84.14    (d) For fiscal year 2006, the district of residence must pay tuition to a district or an 84.15area learning center, operated according to paragraph (f), providing special instruction and 84.16services to a pupil with a disability, as defined in section 
         125A.02, or a pupil, as defined in 84.17section 
         125A.51, who is enrolled in a program listed in this subdivision. The tuition must 84.18be equal to (1) the actual cost of providing special instruction and services to the pupil, 84.19including a proportionate amount for special transportation and unreimbursed building 84.20lease and debt service costs for facilities used primarily for special education, minus (2) if 84.21the pupil receives special instruction and services outside the regular classroom for more 84.22than 60 percent of the school day, the amount of general education revenue and referendum 84.23equalization aid attributable to that pupil for the portion of time the pupil receives special 84.24instruction and services outside of the regular classroom, excluding portions attributable to 84.25district and school administration, district support services, operations and maintenance, 84.26capital expenditures, and pupil transportation, minus (3) special education aid attributable 84.27to that pupil, that is received by the district providing special instruction and services. 84.28For purposes of this paragraph, general education revenue and referendum equalization 84.29aid attributable to a pupil must be calculated using the serving district's average general 84.30education revenue and referendum equalization aid per adjusted pupil unit.84.31    (e) For fiscal year 2007 and later, special education aid paid to a resident district 84.32must be reduced by an amount equal to (1) the actual cost of providing special instruction 84.33and services, including special transportation and unreimbursed building lease and debt 84.34service costs for facilities used primarily for special education, for a pupil with a disability, 84.35as defined in section 
         125A.02, or a pupil, as defined in section 
         125A.51, who is enrolled 84.36in a program listed in this subdivision, minus (2) if the pupil receives special instruction 85.1and services outside the regular classroom for more than 60 percent of the school day, 85.2the amount of general education revenue and referendum equalization aid attributable 85.3to that pupil for the portion of time the pupil receives special instruction and services 85.4outside of the regular classroom, excluding portions attributable to district and school 85.5administration, district support services, operations and maintenance, capital expenditures, 85.6and pupil transportation, minus (3) special education aid attributable to that pupil, that is 85.7received by the district providing special instruction and services. For purposes of this 85.8paragraph, general education revenue and referendum equalization aid attributable to a 85.9pupil must be calculated using the serving district's average general education revenue 85.10and referendum equalization aid per adjusted pupil unit. Special education aid paid to the 85.11district or cooperative providing special instruction and services for the pupil, or to the 85.12fiscal agent district for a cooperative, must be increased by the amount of the reduction 85.13in the aid paid to the resident district. If the resident district's special education aid is 85.14insufficient to make the full adjustment, the remaining adjustment shall be made to other 85.15state aids due to the district.85.16    (f) An area learning center operated by a service cooperative, intermediate district, 85.17education district, or a joint powers cooperative may elect through the action of the 85.18constituent boards to charge the resident district tuition for pupils rather than to have the 85.19general education revenue paid to a fiscal agent school district. Except as provided in 85.20paragraph (d) or (e), the district of residence must pay tuition equal to at least 90 percent 85.21of the district average general education revenue per pupil unit minus an amount equal to 85.22the product of the formula allowance according to section 
         126C.10, subdivision 2, times 85.23.0485, calculated without basic skills revenue and transportation sparsity revenue, times 85.24the number of pupil units for pupils attending the area learning center, plus the amount of 85.25compensatory revenue generated by pupils attending the area learning center.85.26EFFECTIVE DATE.This section is effective the day following final enactment.85.27    Sec. 22. Laws 2006, chapter 263, article 3, section 15, is amended to read:85.28    Sec. 15. SPECIAL EDUCATION TUITION BILLING FOR FISCAL YEARS 85.292006 AND, 2007, AND 2008.85.30    (a) Notwithstanding Minnesota Statutes, sections 
         125A.11, subdivision 1, paragraph 85.31(a), and 
         127A.47, subdivision 7, paragraph (d), for fiscal year 2006 an intermediate 85.32district, special education cooperative, or school district that served as an applicant 85.33agency for a group of school districts for federal special education aids for fiscal year 85.342006 is not subject to the uniform special education tuition billing calculations, but may 85.35instead continue to bill the resident school districts for the actual unreimbursed costs 86.1of serving pupils with a disability as determined by the intermediate district, special 86.2education cooperative, or school district.86.3    (b) Notwithstanding Minnesota Statutes, section 
         125A.11, subdivision 1, paragraph 86.4(c), for fiscal year 2007 only, an applicant district agency exempted from the uniform 86.5special education tuition billing calculations for fiscal year 2006 under paragraph (a)86.6may apply to the commissioner for a waiver an exemption from the uniform special 86.7education tuition calculations and aid adjustments under Minnesota Statutes, sections 86.8125A.11, subdivision 1
         , paragraph (b), and 
         127A.47, subdivision 7, paragraph (e). The 86.9commissioner must grant the waiver exemption within 30 days of receiving the following 86.10information from the intermediate district, special education cooperative, or school district:86.11    (1) a detailed description of the applicant district's methodology for calculating 86.12special education tuition for fiscal years 2006 and 2007, as required by the applicant 86.13district to recover the full cost of serving pupils with a disability;86.14    (2) sufficient data to determine the total amount of special education tuition actually 86.15charged for each student with a disability, as required by the applicant district to recover 86.16the full cost of serving pupils with a disability in fiscal year 2006; and86.17    (3) sufficient data to determine the amount that would have been charged for each 86.18student for fiscal year 2006 using the uniform tuition billing methodology according 86.19to Minnesota Statutes, sections 
         125A.11, subdivision 1, or 
         127A.47, subdivision 7, 86.20as applicable.86.21    (c) Notwithstanding Minnesota Statutes, section 125A.11, subdivision 1, paragraph 86.22(c), for fiscal year 2008 only, an agency granted an exemption from the uniform special 86.23education tuition billing calculations and aid adjustments for fiscal year 2007 under 86.24paragraph (b)  may apply to the commissioner for a one-year extension of the exemption 86.25granted under paragraph (b). The commissioner must grant the extension within 30 days 86.26of receiving the request. 86.27    (d) Notwithstanding Minnesota Statutes, section 125A.11, subdivision 1, paragraphs 86.28(a) and (b), and section 127A.47, subdivision 7, paragraphs (d) and (e), for fiscal year 2007 86.29only, a school district or charter school not eligible for a waiver under Minnesota Statutes, 86.30section 125A.11, subdivision 1, paragraph (d), may apply to the commissioner for authority 86.31to charge the resident district an additional amount to recover any remaining unreimbursed 86.32costs of serving pupils with a disability. The application must include a description of the 86.33costs and the calculations used to determine the unreimbursed portion to be charged to the 86.34resident district. Amounts approved by the commissioner under this paragraph must be 86.35included in the tuition billings or aid adjustments under paragraph (a) or (b), or Minnesota 86.36Statutes, section 127A.47, subdivision 7, paragraph (d) or (e), as applicable.87.1EFFECTIVE DATE.This section is effective the day following final enactment.87.2    Sec. 23. TASK FORCE TO COMPARE FEDERAL AND STATE SPECIAL 87.3EDUCATION REQUIREMENTS.87.4    Subdivision 1.Establishment; duties.A task force is established to recommend 87.5which state laws and rules that exceed or expand upon minimum federal special education 87.6requirements for providing special education programs and services to eligible students 87.7should be amended to conform with minimum federal requirements. The commissioner 87.8of the Bureau of Mediation Services under Minnesota Statutes, section 179.02, after 87.9consulting with interested stakeholders, shall appoint a ten-member task force composed 87.10of equal numbers of providers, advocates, regulators, consumers of special education 87.11services, lawyers who practice in the field of special education and represent either parents 87.12or school districts, special education teachers, and school officials. The commissioner must 87.13convene the task force by August 1, 2007, which shall meet regularly and shall review the 87.14January 25, 2006, report prepared by the Minnesota Department of Education Office of 87.15Compliance and Assistance and other relevant studies and resources analyzing differences 87.16between federal and state special education requirements. The terms and compensation of 87.17task force members are governed by Minnesota Statutes, section 15.059, subdivision 6.87.18    Subd. 2.Report.The task force must submit to the education policy and finance 87.19committees of the legislature by February 15, 2008, a report that identifies and clearly 87.20and concisely explains each provision in state law or rule that exceeds or expands upon 87.21a minimum federal requirement contained in law or regulation for providing special 87.22education programs and services to eligible students. The report also must recommend 87.23which state provisions that exceed or expand upon a minimum federal requirement may 87.24be amended to conform with minimum federal requirements. The task force expires 87.25when it submits its report to the legislature.87.26EFFECTIVE DATE.This section is effective the day following final enactment.87.27    Sec. 24. APPROPRIATIONS.87.28    Subdivision 1.Department of Education.The sums indicated in this section are 87.29appropriated from the general fund to the Department of Education for the fiscal years 87.30designated.87.31    Subd. 2.Special education; regular.For special education aid under Minnesota 87.32Statutes, section 125A.75:

88.1$691,653,000.....200888.2$739,070,000.....2009

88.3    The 2008 appropriation includes $52,965,000 for 2007 and $638,688,000 for 2008.88.4    The 2009 appropriation includes $70,965,000 for 2008 and $668,105,000 for 2009.88.5    Subd. 3.Aid for children with disabilities.For aid under Minnesota Statutes, 88.6section 125A.75, subdivision 3, for children with disabilities placed in residential facilities 88.7within the district boundaries for whom no district of residence can be determined:

88.8$1,538,000.....200888.9$1,729,000.....2009

88.10    If the appropriation for either year is insufficient, the appropriation for the other 88.11year is available.88.12    Subd. 4.Travel for home-based services.For aid for teacher travel for home-based 88.13services under Minnesota Statutes, section 125A.75, subdivision 1:

88.14$254,000.....200888.15$284,000.....2009

88.16    The 2008 appropriation includes $22,000 for 2007 and $232,000 for 2008.88.17    The 2009 appropriation includes $25,000 for 2008 and $259,000 for 2009.88.18    Subd. 5.Special education; excess costs.For excess cost aid under Minnesota 88.19Statutes, section 125A.79, subdivision 7:

88.20$116,612,000.....200888.21$124,395,000.....2009

88.22    The 2008 appropriation includes $34,969,000 for 2007 and $81,643,000 for 2008.88.23    The 2009 appropriation includes $40,943,000 for 2008 and $83,452,000 for 2009.88.24    Subd. 6.Transition for disabled students.For aid for transition programs for 88.25children with disabilities under Minnesota Statutes, section 124D.454:

88.26$879,000.....2008

88.27    The 2008 appropriation includes $879,000 for 2007 and $0 for 2008.88.28    Subd. 7.Court-placed special education revenue.For reimbursing serving 88.29school districts for unreimbursed eligible expenditures attributable to children placed in 88.30the serving school district by court action under Minnesota Statutes, section 125A.79, 88.31subdivision 4:

88.32$72,000.....200888.33$74,000.....2009

89.1    Subd. 8.Special education out-of-state tuition.For special education out-of-state 89.2tuition according to Minnesota Statutes, section 125A.79, subdivision 8:

89.3$250,000.....200889.4$250,000.....2009

89.5    Sec. 25.  REPEALER.89.6(a) Minnesota Statutes 2006, sections 125A.10; and 125A.75, subdivision 6, are 89.7repealed.89.8(b) Minnesota Statutes 2006, sections 124D.454, subdivisions 4, 5, 6, and 7; and 89.9125A.76, subdivision 3, are repealed effective for revenue for fiscal year 2008.89.10ARTICLE 489.11FACILITIES AND TECHNOLOGY89.12    Section 1. Minnesota Statutes 2006, section 123A.44, is amended to read:89.13123A.44 CITATION.89.14    Sections 
         123A.441 to 
         123A.446 may be cited as the "Cooperative Secondary89.15Facilities Grant Act." 89.16EFFECTIVE DATE.This section is effective the day following final enactment.89.17    Sec. 2. Minnesota Statutes 2006, section 123A.441, is amended to read:89.18123A.441 POLICY AND PURPOSE.89.19    Because of the rates of decline in school-aged population, population shifts and 89.20economic changes that the state has experienced in recent years and anticipates in future 89.21years, and because in some instances local districts have not, and will not be able to 89.22provide the required construction funds through local property taxes, the purpose of the 89.23cooperative secondary facilities grant program is to provide an incentive to encourage 89.24cooperation in making available to all secondary students those educational programs, 89.25services and facilities that are most efficiently and effectively provided by a cooperative 89.26effort of several school districts. The policy and purpose of sections 
         123A.442 to 89.27123A.446
          is to use the credit of the state, to a limited degree, to provide grants to 89.28cooperating groups of districts to improve and expand the educational opportunities and 89.29facilities available to their secondary students. 89.30EFFECTIVE DATE.This section is effective the day following final enactment.90.1    Sec. 3. Minnesota Statutes 2006, section 123A.442, is amended to read:90.2123A.442 APPROVAL AUTHORITY; APPLICATION FORMS.90.3    Subdivision 1. Approval by commissioner. To the extent money is available, the 90.4commissioner may approve projects from applications submitted under section 
         123A.443. 90.5The grant money must be used only to acquire, construct, remodel or improve the building 90.6or site of a cooperative secondary facility under contracts to be entered into within 15 90.7months after the date on which each grant is awarded. 90.8    Subd. 2. Cooperation and combination. Districts that have not already 90.9consolidated and receive a cooperative secondary facilities grant after May 1, 1991, shall:90.10    (1) submit a consolidation plan as set forth in under section 
         123A.36 123A.48 for 90.11approval by the State Board of Education before December 31, 1999, or Department of 90.12Education after December 30, 1999; and 90.13    (2) hold a referendum on the question of combination consolidation no later than 90.14four years after a grant is awarded under subdivision 1.90.15    The districts are eligible for cooperation and combination consolidation revenue 90.16under section 
         123A.39, subdivision 3 123A.485. 90.17    Subd. 3.Consolidated districts.A school district that has consolidated with 90.18another school district since July 1, 1980, is eligible for a cooperative facilities grant.90.19EFFECTIVE DATE.This section is effective the day following final enactment.90.20    Sec. 4. Minnesota Statutes 2006, section 123A.443, is amended to read:90.21123A.443 GRANT APPLICATION PROCESS.90.22    Subdivision 1. Qualification. Any group of districts or a consolidated district90.23that meets the criteria required under subdivision 2 may apply for an incentive grant for 90.24construction of a new secondary facility or for remodeling and improving an existing 90.25secondary facility. A grant for new construction must not exceed the lesser of $5,000,00090.26$20,000,000 or 75 percent of the approved construction costs of a cooperative secondary90.27education facility. A grant for remodeling and improving an existing facility must not 90.28exceed $200,000 the lesser of $10,000,000, or 75 percent of the approved remodeling 90.29costs.90.30    Subd. 2. Review by commissioner. (a) A group of districts or a consolidated district 90.31that submits an application for a grant must submit a proposal to the commissioner for 90.32review and comment under section 
         123B.71. The commissioner shall prepare a review 90.33and comment on the proposed facility by July 1 of an odd-numbered year, regardless of 90.34the amount of the capital expenditure required to acquire, construct, remodel or improve 91.1the secondary facility. The commissioner shall not approve an application for an incentive 91.2grant for any secondary facility unless the facility receives a favorable review and 91.3comment under section 
         123B.71 and the following criteria are met: 91.4    (1) the applicant is a consolidated district or a minimum of two or more districts, 91.5with kindergarten to grade 12 enrollments in each district of no more than 1,200 pupils, 91.6enter that have entered into a joint powers agreement;91.7    (2) for a group of districts, a joint powers board representing all participating 91.8districts is established under section 
         471.59 to govern the cooperative secondary facility; 91.9    (3) the planned secondary facility will result in the joint powers district meeting the 91.10requirements of Minnesota Rules, parts 3500.2010 and 3500.2110;91.11    (4) at least 198 pupils would be served in grades 10 to 12, 264 pupils would be 91.12served in grades 9 to 12, or 396 pupils would be served in grades 7 to 12;91.13    (5)(3) for a group of districts, no more than one superintendent is employed by the 91.14joint powers board as a result of the cooperative secondary facility agreement;91.15    (6) (4) a statement of need is submitted, that may include reasons why the current 91.16secondary facilities are inadequate, unsafe or inaccessible to persons with disabilities;91.17    (7) (5) an educational plan is prepared, that includes input from both community and 91.18professional staff;91.19    (8) (6) for a group of districts, a combined seniority list for all participating districts 91.20is developed by the joint powers board;91.21    (9) (7) for a group of districts, an education program is developed that provides for 91.22more learning opportunities and course offerings, including the offering of advanced 91.23placement courses, for students than is currently available in any single member district;91.24    (10) (8) a plan is developed for providing instruction of any resident students in 91.25other districts when distance to the secondary education facility makes attendance at the 91.26facility unreasonably difficult or impractical; and91.27    (11) (9) for a secondary facility, the joint powers board established under clause (2) 91.28discusses with technical colleges located in the area how vocational education space in 91.29the cooperative secondary facility could be jointly used for secondary and postsecondary 91.30purposes.91.31    (b) To the extent possible, the joint powers board is encouraged to provide for 91.32severance pay or for early retirement incentives under section 
         122A.48, for any teacher 91.33or administrator, as defined under section 
         122A.40, subdivision 1, who is placed on 91.34unrequested leave as a result of the cooperative secondary facility agreement. 91.35    (c) For the purpose of paragraph (a), clause (8) (6), each district must be considered 91.36to have started school each year on the same date.92.1    (d) The districts may develop a plan that provides for the location of social service, 92.2health, and other programs serving pupils and community residents within the cooperative 92.3secondary facility. The commissioner shall consider this plan when preparing a review 92.4and comment on the proposed facility.92.5    (e) The districts must schedule and conduct a meeting on library services. The 92.6school districts, in cooperation with the regional public library system and its appropriate 92.7member libraries, must discuss the possibility of including jointly operated library services 92.8at the cooperative secondary facility.92.9    (f) The board of a district that has reorganized under section 
         123A.37 or 
         123A.4892.10and that is applying for a grant for remodeling or improving an existing facility may act in 92.11the place of a joint powers board to meet the criteria of this subdivision. 92.12    Subd. 3. Reorganizing districts. A district that is a member of a joint powers 92.13board established under subdivision 2 and that is planning to reorganize under section 92.14123A.45
         , 
         123A.46, or 
         123A.48 must notify the joint powers board one year in advance of 92.15the effective date of the reorganization. Notwithstanding section 
         471.59 or any other law 92.16to the contrary, the board of a district that reorganizes under section 
         123A.45, 
         123A.46, or 92.17123A.48
          may appoint representatives to the joint powers board who will serve on the joint 92.18powers board for two years after the effective date of the reorganization if authorized in 92.19the agreement establishing the joint powers board to govern the cooperative secondary92.20facility. These representatives shall have the same powers as representatives of any other 92.21school district under the joint powers agreement. 92.22    Subd. 4. District procedures. A joint powers board of a secondary district 92.23established under subdivision 2 or a school board of a reorganized district that intends 92.24to apply for a grant must adopt a resolution stating the proposed costs of the project, 92.25the purpose for which the costs are to be incurred, and an estimate of the dates when 92.26the facilities for which the grant is requested will be contracted for and completed. 92.27Applications for the state grants must be accompanied by (a) a copy of the resolution, (b) 92.28a certificate by the clerk and treasurer of the joint powers board showing the current 92.29outstanding indebtedness of each member district, and (c) a certificate by the county 92.30auditor of each county in which a portion of the joint powers district lies showing the 92.31information in the auditor's official records that is required to be used in computing the 92.32debt limit of the district under section 
         475.53, subdivision 4. The clerk's and treasurer's 92.33certificate must show, as to each outstanding bond issue of each member district, the 92.34amount originally issued, the purpose for which issued, the date of issue, the amount 92.35remaining unpaid as of the date of the resolution, and the interest rates and due dates 92.36and amounts of principal thereon. Applications and necessary data must be in the 93.1form prescribed by the commissioner and the rules of the State Board of Education 93.2before December 31, 1999, and after December 30, 1999, in the form prescribed by the 93.3commissioner. Applications must be received by the commissioner by September 1 of an 93.4odd-numbered year. When an application is received, the commissioner shall obtain from 93.5the commissioner of revenue, and from the Public Utilities Commission when required, 93.6the information in their official records that is required to be used in computing the debt 93.7limit of the joint powers district under section 
         475.53, subdivision 4. 93.8    Subd. 5. Award of grants. By November 1 of the odd-numbered year, the 93.9commissioner shall examine and consider all applications for grants, and if any district is 93.10found not qualified, the commissioner shall promptly notify that board.93.11    A grant award is subject to verification by the district as specified in subdivision 93.128. A grant award for a new facility must not be made until the site of the secondary93.13facility has been determined. A grant award to remodel or improve an existing facility 93.14must not be made until the districts have reorganized. If the total amount of the approved 93.15applications exceeds the amount that is or can be made available, the commissioner shall 93.16first award grants to districts that will close at least one existing school building, and then, 93.17to the extent funds remain, allot the available amount equally between the any other93.18approved applicant districts. The commissioner shall promptly certify to each qualified 93.19district the amount, if any, of the grant awarded to it.93.20    Subd. 6. Collocation grant. A group of districts that receives a grant for a new 93.21facility under subdivision 4 is also eligible to receive an additional grant in the amount of 93.22$1,000,000. To receive the additional grant, the group of districts must develop a plan 93.23under subdivision 2, paragraph (d), that provides for the location of a significant number 93.24of noneducational student and community service programs within the cooperative 93.25secondary facility.93.26    Subd. 7. Referendum; bond issue. Within 180 days after being awarded a grant 93.27for a new facility under subdivision 5, the joint powers board must submit the question 93.28of authorizing the borrowing of funds for the secondary facility to the voters of the joint 93.29powers district at a special election, which may be held in conjunction with the annual93.30general election of the school board members of the member districts. The question 93.31submitted must state the total amount of funding needed from all sources. A majority of 93.32those voting in the affirmative on the question is sufficient to authorize the joint powers 93.33board to accept the grant and to issue the bonds on public sale in accordance with93.34according to chapter 475. The clerk of the joint powers board must certify the vote of 93.35the bond election to the commissioner. If the question is approved by the voters, the 93.36commissioner shall notify the approved applicant districts that the grant amount certified 94.1under subdivision 5 is available and appropriated for payment under this subdivision. 94.2If a majority of those voting on the question do not vote in the affirmative, the grant 94.3must be canceled.94.4    Subd. 8. Contract. Each grant must be evidenced by a contract between the board 94.5and the state acting through the commissioner. The contract obligates the state to pay to 94.6the board an amount computed according to subdivision 5, and according to a schedule, 94.7and terms and conditions acceptable to the commissioner of finance.94.8    Subd. 9. Consolidation. A group of districts that operates a cooperative secondary94.9facility that was acquired, constructed, remodeled, or improved under this section and 94.10implements consolidation proceedings according to section 
         123A.48, may propose a 94.11temporary school board structure in the petition or resolution required under section 94.12123A.48, subdivision 2
         . The districts may propose the number of existing school board 94.13members of each district to become members of the board of the consolidated district 94.14and a method to gradually reduce the membership to six or seven. The proposal must 94.15be approved, disapproved, or modified by the state board of education commissioner. 94.16The election requirements of section 
         123A.48, subdivision 20, do not apply to a 94.17proposal approved by the state board. Elections conducted after the effective date of the 94.18consolidation are subject to the Minnesota Election Law. 94.19EFFECTIVE DATE.This section is effective the day following final enactment.94.20    Sec. 5. Minnesota Statutes 2006, section 123B.53, subdivision 1, is amended to read:94.21    Subdivision 1. Definitions. (a) For purposes of this section, the eligible debt service 94.22revenue of a district is defined as follows:94.23    (1) the amount needed to produce between five and six percent in excess of the 94.24amount needed to meet when due the principal and interest payments on the obligations 94.25of the district for eligible projects according to subdivision 2, including the amounts 94.26necessary for repayment of energy loans according to section 
         216C.37 or sections 
         298.29294.27to 
         298.298, debt service loans and capital loans, lease purchase payments under section 94.28126C.40, subdivision 2
         , alternative facilities levies under section 
         123B.59, subdivision 94.295
         ,  paragraph (a), minus94.30    (2) the amount of debt service excess levy reduction for that school year calculated 94.31according to the procedure established by the commissioner.94.32    (b) The obligations in this paragraph are excluded from eligible debt service revenue:94.33    (1) obligations under section 
         123B.61;94.34    (2) the part of debt service principal and interest paid from the taconite environmental 94.35protection fund or Douglas J. Johnson economic protection trust;95.1    (3) obligations issued under Laws 1991, chapter 265, article 5, section 18, as 95.2amended by Laws 1992, chapter 499, article 5, section 24; and95.3    (4) obligations under section 
         123B.62.95.4    (c) For purposes of this section, if a preexisting school district reorganized under 95.5sections 
         123A.35 to 
         123A.43, 
         123A.46, and 
         123A.48 is solely responsible for retirement 95.6of the preexisting district's bonded indebtedness, capital loans or debt service loans, debt 95.7service equalization aid must be computed separately for each of the preexisting districts.95.8    (d) For purposes of this section, the adjusted net tax capacity determined according 95.9to section 
         127A.48 shall be adjusted to include a portion of the tax capacity of property 95.10generally exempted from ad valorem taxes under section 272.02, subdivisions subdivision95.1164 and 65, equal to the product of that tax capacity times the ratio of the eligible debt 95.12service revenue attributed to general obligation bonds to the total eligible debt service 95.13revenue of the district.95.14    Sec. 6. Minnesota Statutes 2006, section 123B.54, is amended to read:95.15123B.54 DEBT SERVICE APPROPRIATION.95.16    (a) $21,624,000 $14,813,000 in fiscal year 2008 and $20,403,000, $11,124,000 in 95.17fiscal year 2009, $8,866,000 in fiscal year 2010, and $6,631,000 in fiscal year 2011 and 95.18later are appropriated from the general fund to the commissioner of education for payment 95.19of debt service equalization aid under section 
         123B.53.95.20    (b) The appropriations in paragraph (a) must be reduced by the amount of any 95.21money specifically appropriated for the same purpose in any year from any state fund.95.22EFFECTIVE DATE.This section is effective for revenue for fiscal year 2009.95.23    Sec. 7. Minnesota Statutes 2006, section 123B.57, subdivision 3, is amended to read:95.24    Subd. 3. Health and safety revenue. A district's health and safety revenue 95.25for a fiscal year equals the district's alternative facilities levy under section 123B.59, 95.26subdivision 5, paragraph (b), plus the greater of zero or:95.27    (1) the sum of (a) the total approved cost of the district's hazardous substance 95.28plan for fiscal years 1985 through 1989, plus (b) the total approved cost of the district's 95.29health and safety program for fiscal year 1990 through the fiscal year to which the levy 95.30is attributable, excluding expenditures funded with bonds issued under section 
         123B.5995.31or 
         123B.62, or chapter 475; certificates of indebtedness or capital notes under section 95.32123B.61
         ; levies under section 
         123B.58, 
         123B.59, 
         123B.63, or 
         126C.40, subdivision 1 or 95.336; and other federal, state, or local revenues, minus 96.1    (2) the sum of (a) the district's total hazardous substance aid and levy for fiscal years 96.21985 through 1989 under sections 
         124.245 and 
         275.125, subdivision 11c, plus (b) the 96.3district's health and safety revenue under this subdivision, for years before the fiscal year 96.4to which the levy is attributable. 96.5EFFECTIVE DATE.This section is effective for revenue for fiscal year 2009.96.6    Sec. 8. Minnesota Statutes 2006, section 123B.63, subdivision 3, is amended to read:96.7    Subd. 3. Capital project levy referendum. A district may levy the local tax 96.8rate approved by a majority of the electors voting on the question to provide funds for 96.9an approved project. The election must take place no more than five years before the 96.10estimated date of commencement of the project. The referendum must be held on a date 96.11set by the board. A referendum for a project not receiving a positive review and comment 96.12by the commissioner under section 
         123B.71 must be approved by at least 60 percent of the 96.13voters at the election. The referendum may be called by the school board and may be held: 96.14    (1) separately, before an election for the issuance of obligations for the project 96.15under chapter 475; or96.16    (2) in conjunction with an election for the issuance of obligations for the project 96.17under chapter 475; or96.18    (3) notwithstanding section 
         475.59, as a conjunctive question authorizing both the 96.19capital project levy and the issuance of obligations for the project under chapter 475. Any 96.20obligations authorized for a project may be issued within five years of the date of the 96.21election. 96.22    The ballot must provide a general description of the proposed project, state the 96.23estimated total cost of the project, state whether the project has received a positive or 96.24negative review and comment from the commissioner, state the maximum amount of the 96.25capital project levy as a percentage of net tax capacity, state the amount that will be raised 96.26by that local tax rate in the first year it is to be levied, and state the maximum number of 96.27years that the levy authorization will apply.96.28    The ballot must contain a textual portion with the information required in this 96.29section and a question stating substantially the following:96.30    "Shall the capital project levy proposed by the board of .......... School District 96.31No. .......... be approved?"96.32    If approved, the amount provided by the approved local tax rate applied to the net 96.33tax capacity for the year preceding the year the levy is certified may be certified for the 96.34number of years, not to exceed ten, approved.97.1    In the event a conjunctive question proposes to authorize both the capital project 97.2levy and the issuance of obligations for the project, appropriate language authorizing the 97.3issuance of obligations must also be included in the question.97.4    The district must notify the commissioner of the results of the referendum.97.5EFFECTIVE DATE.This section is effective July 1, 2007, for elections conducted 97.6on or after that day.97.7    Sec. 9. Minnesota Statutes 2006, section 128D.11, subdivision 3, is amended to read:97.8    Subd. 3. No election. Subject to the provisions of subdivisions 7 to 10, the school 97.9district may also by a two-thirds majority vote of all the members of its board of education 97.10and without any election by the voters of the district, issue and sell in each calendar year 97.11general obligation bonds of the district in an amount not to exceed 5-1/10 per cent of the 97.12net tax capacity of the taxable property in the district (plus, for calendar years 1990 to 97.132003, an amount not to exceed $7,500,000, and for calendar years 2004 to 20082016 an 97.14amount not to exceed $15,000,000; with an additional provision that any amount of bonds 97.15so authorized for sale in a specific year and not sold can be carried forward and sold in 97.16the year immediately following).97.17EFFECTIVE DATE.This section is effective the day following final enactment.97.18    Sec. 10. Minnesota Statutes 2006, section 272.02, subdivision 64, is amended to read:97.19    Subd. 64. Job opportunity building zone property. (a) Improvements to real 97.20property, and personal property, classified under section 
         273.13, subdivision 24, and 97.21located within a job opportunity building zone, designated under section 
         469.314, are 97.22exempt from ad valorem taxes levied under chapter 275.97.23    (b) Improvements to real property, and tangible personal property, of an agricultural 97.24production facility located within an agricultural processing facility zone, designated 97.25under section 
         469.314, is exempt from ad valorem taxes levied under chapter 275.97.26    (c) For property to qualify for exemption under paragraph (a), the occupant must be 97.27a qualified business, as defined in section 
         469.310.97.28    (d) The exemption applies beginning for the first assessment year after designation 97.29of the job opportunity building zone by the commissioner of employment and economic 97.30development. The exemption applies to each assessment year that begins during the 97.31duration of the job opportunity building zone. To be exempt, the property must be 97.32occupied by July 1 of the assessment year by a qualified business that has signed the 98.1business subsidy agreement and relocation agreement, if required, by July 1 of the 98.2assessment year. This exemption does not apply to:98.3    (1) the levy under section 
         475.61 or similar levy provisions under any other law to 98.4pay general obligation bonds; or98.5    (2) a levy under section 126C.17, if the levy was approved by the voters before the 98.6designation of the job opportunity building zoneother school district levies included in 98.7the debt service levy of the district under section 123B.55.98.8EFFECTIVE DATE.This section is effective for taxes payable in 2008.98.9    Sec. 11. SCHOOL TECHNOLOGY AID.98.10    School technology aid equals $150 times the district's adjusted marginal cost pupil 98.11units for fiscal year 2009. This aid must only be used for the purposes of Minnesota 98.12Statutes, section 126C.10, subdivision 14.98.13EFFECTIVE DATE.This section is effective the day following final enactment.98.14    Sec. 12. BONDING AUTHORIZATION.98.15    To provide funds for the acquisition or betterment of school facilities, Independent 98.16School District No. 625, St. Paul, may by two-thirds majority vote of all the members of 98.17the board of directors issue general obligation bonds in one or more series for calendar 98.18years 2008 through 2016, as provided in this section. The aggregate principal amount of 98.19any bonds issued under this section for each calendar year must not exceed $15,000,000. 98.20Issuance of the bonds is not subject to Minnesota Statutes, section 475.58 or 475.59. 98.21The bonds must otherwise be issued as provided in Minnesota Statutes, chapter 475. 98.22The authority to issue bonds under this section is in addition to any bonding authority 98.23authorized by Minnesota Statutes, chapter 123B, or other law. The amount of bonding 98.24authority authorized under this section must be disregarded in calculating the bonding 98.25limit of Minnesota Statutes, chapter 123B, or any other law other than Minnesota Statutes, 98.26section 475.53, subdivision 4.98.27EFFECTIVE DATE.This section is effective the day following final enactment.98.28    Sec. 13. TAX LEVY FOR DEBT SERVICE.98.29    To pay the principal of and interest on bonds issued under section 2, Independent 98.30School District No. 625, St. Paul, must levy a tax annually in an amount sufficient 98.31under Minnesota Statutes, section 475.61, subdivisions 1 and 3, to pay the principal of 98.32and interest on the bonds. The tax authorized under this section is in addition to the 99.1taxes authorized to be levied under Minnesota Statutes, chapter 123B, 124D, or 126C, or 99.2other law.99.3EFFECTIVE DATE.This section is effective the day following final enactment.99.4    Sec. 14. ADMINISTRATIVE LEASE LEVY; SPRING LAKE PARK.99.5    Notwithstanding the instructional purposes limitation of Minnesota Statutes, section 99.6126C.40, subdivision 1, Independent School District No. 16, Spring Lake Park, may 99.7lease administrative space under Minnesota Statutes, section 126C.40, subdivision 1, if 99.8the district can demonstrate to the satisfaction of the commissioner of education that 99.9the administrative space is less expensive than instruction space that the district would 99.10otherwise lease. A school district may not levy under this section for more than five years. 99.11The commissioner must deny this levy authority unless the district passes a resolution 99.12stating its intent to lease instructional space under Minnesota Statutes, section 126C.40, 99.13subdivision 1, if the commissioner does not grant authority under this section. The 99.14resolution must also certify that a lease of administrative space under this section is less 99.15expensive than the district's proposed instructional lease. Levy authority under this section 99.16shall not exceed the total levy authority under Minnesota Statutes, section 126C.40, 99.17subdivision 1, paragraph (e). 99.18EFFECTIVE DATE.This section is effective beginning with revenue for taxes 99.19payable in 2008.99.20    Sec. 15. HEALTH AND SAFETY REVENUE; CLEARBROOK-GONVICK.99.21    Notwithstanding Minnesota Statutes, section 123B.57, Independent School District 99.22No. 2311, Clearbrook-Gonvick, may use health and safety revenue for the demolition of 99.23the Gonvick school building. The district must recognize the revenue under this section 99.24in fiscal year 2008.99.25EFFECTIVE DATE.This section is effective for taxes payable in 2008.99.26    Sec. 16. APPROPRIATIONS.99.27    Subdivision 1.Department of Education.The sums indicated in this section are 99.28appropriated from the general fund to the Department of Education for the fiscal years 99.29designated.99.30    Subd. 2.Health and safety revenue.For health and safety aid according to 99.31Minnesota Statutes, section 123B.57, subdivision 5:

100.1$190,000.....2008100.2$179,000.....2009

100.3    The 2008 appropriation includes $20,000 for 2007 and $170,000 for 2008.100.4    The 2009 appropriation includes $18,000 for 2008 and $161,000 for 2009.100.5    Subd. 3.Debt service equalization.For debt service aid according to Minnesota 100.6Statutes, section 123B.53, subdivision 6:

100.7$14,812,000.....2008100.8$11,124,000.....2009

100.9    The 2008 appropriation includes $1,767,000 for 2007 and $13,045,000 for 2008.100.10    The 2009 appropriation includes $1,450,000 for 2008 and $9,674,000 for 2009.100.11    Subd. 4.Alternative facilities bonding aid.For alternative facilities bonding aid, 100.12according to Minnesota Statutes, section 123B.59, subdivision 1:

100.13$19,287,000.....2008100.14$19,287,000.....2009

100.15    The 2008 appropriation includes $1,928,000 for 2007 and $17,359,000 for 2008.100.16    The 2009 appropriation includes $1,928,000 for 2008 and $17,359,000 for 2009.100.17    Subd. 5.Equity in telecommunications access.For equity in telecommunications 100.18access:

100.19$7,622,000.....2008100.20$8,743,000.....2009

100.21    If the appropriation amount is insufficient, the commissioner shall reduce the 100.22reimbursement rate in Minnesota Statutes, section 125B.26, subdivisions 4 and 5, and the 100.23revenue for fiscal years 2008 and 2009 shall be prorated.100.24    Any balance in the first year does not cancel but is available in the second year.100.25    The base appropriation for fiscal year 2010 and later is $3,750,000. 100.26    Subd. 6.Deferred maintenance aid.For deferred maintenance aid, according to 100.27Minnesota Statutes, section 123B.591, subdivision 4:

100.28$3,290,000.....2008100.29$2,667,000.....2009

100.30    The 2008 appropriation includes $0 for 2007 and $3,290,000 for 2008.100.31    The 2009 appropriation includes $365,000 for 2008 and $2,302,000 for 2009.100.32    Subd. 7.Rocori school district.For Rocori, Independent School District No. 100.33750, for Project Serv:

101.1$53,000.....2008

101.2    Subd. 8.School technology grants.For school technology grants under section 11:

101.3$150,000,000.....2009

101.4    This is a onetime appropriation.101.5    Subd. 9.Eden Valley-Watkins; environmental remediation.For a grant to 101.6Independent School District No. 463, Eden Valley-Watkins, to recover the amount actually 101.7spent on environmental remediation efforts related to the cleanup of a mercury spill.

101.8$126,000.....2008

101.9ARTICLE 5101.10NUTRITION AND ACCOUNTING101.11    Section 1. Minnesota Statutes 2006, section 123B.10, subdivision 1, is amended to read:101.12    Subdivision 1. Budgets; form of notification.(a) Every board must publish revenue 101.13and expenditure budgets for the current year and the actual revenues, expenditures, fund 101.14balances for the prior year and projected fund balances for the current year in a form 101.15prescribed by the commissioner within one week of the acceptance of the final audit by 101.16the board, or November 30, whichever is earlier. The forms prescribed must be designed 101.17so that year to year comparisons of revenue, expenditures and fund balances can be made. 101.18These budgets, reports of revenue, expenditures and fund balances must be published in 101.19a qualified newspaper of general circulation in the district or on the district's official 101.20Web site. If published on the district's official Web site, the district must also publish an 101.21announcement in a qualified newspaper of general circulation in the district that includes 101.22the Internet address where the information has been posted.101.23    (b) A school board annually must notify the public of its revenue, expenditures, fund 101.24balances, and other relevant budget information. The board must include the budget 101.25information required by this section in the materials provided as a part of its truth in 101.26taxation hearing, post the materials in a conspicuous place on the district's official Web 101.27site, including a link to the district's school report card on the Department of Education's 101.28Web site, and publish the information in a qualified newspaper of general circulation 101.29in the district.101.30    Sec. 2. Minnesota Statutes 2006, section 123B.77, subdivision 4, is amended to read:101.31    Subd. 4. Budget approval. Prior to July 1 of each year, the board of each district 101.32must approve and adopt its revenue and expenditure budgets for the next school year. 102.1The budget document so adopted must be considered an expenditure-authorizing or 102.2appropriations document. No funds shall be expended by any board or district for any 102.3purpose in any school year prior to the adoption of the budget document which authorizes 102.4that expenditure, or prior to an amendment to the budget document by the board to 102.5authorize the expenditure. Expenditures of funds in violation of this subdivision shall be 102.6considered unlawful expenditures. Prior to the appropriation of revenue for the next 102.7school year in the initial budget, the board shall inform the principal or other responsible 102.8administrative authority of each site of the amount of general education and referendum 102.9revenue that the Department of Education estimates will be generated by the pupils 102.10in attendance at each site. For purposes of this subdivision, a district may adjust the 102.11department's estimates for school building openings, school building closings, changes 102.12in attendance area boundaries, or other changes in programs or student demographics 102.13not reflected in the department's calculations. A district must report to the department 102.14any adjustments it makes according to this subdivision in the department's estimates 102.15of compensatory revenue generated by the pupils in attendance at each site, and the 102.16department must use the adjusted compensatory revenue estimates in preparing the report 102.17required under section 123B.76, subdivision 3, paragraph (c).102.18    Sec. 3. Minnesota Statutes 2006, section 123B.79, subdivision 8, is amended to read:102.19    Subd. 8. Account transfer for reorganizing districts. A district that has 102.20reorganized according to sections 
         123A.35 to 
         123A.43, 
         123A.46, or 
         123A.48, or has 102.21conducted a successful referendum on the question of combination under section 102.22123A.37, subdivision 2
         , or consolidation under section 
         123A.48, subdivision 15, or has 102.23been assigned an identification number by the commissioner under section 
         123A.48, 102.24subdivision 16
         , may make permanent transfers between any of the funds or accounts in 102.25the newly created or enlarged district with the exception of the debt redemption fund, 102.26food service fund, and health and safety account of the capital expenditure fund. Fund 102.27transfers under this section may be made for up to one year prior to the effective date of 102.28combination or consolidation by the consolidating boards and during the year following 102.29the effective date of reorganization by the consolidated board. The newly formed board of 102.30the combined district may adopt a resolution on or before August 30 of the year of the 102.31reorganization authorizing a transfer among accounts or funds of the previous independent 102.32school districts which transfer or transfers shall be reported in the affected districts' 102.33audited financial statements for the year immediately preceding the consolidation. 103.1    Sec. 4. Minnesota Statutes 2006, section 123B.79, is amended by adding a subdivision 103.2to read:103.3    Subd. 9.Elimination of reserve accounts.A school board shall eliminate all 103.4reserve accounts established in the school district's general fund under Minnesota Statutes 103.5before July 1, 2006, for which no specific authority remains in statute as of June 30, 103.62007. Any balance in the district's reserved for bus purchases account as of June 30, 103.72007, shall be transferred to the reserved account for operating capital in the school 103.8district's general fund. Any balance in other reserved accounts established in the school 103.9district's general fund under Minnesota Statutes before July 1, 2006, for which no specific 103.10authority remains in statute as of June 30, 2007, shall be transferred to the school district's 103.11unreserved general fund balance. A school board may, upon adoption of a resolution by 103.12the school board, establish a designated account for any program for which a reserved 103.13account has been eliminated.103.14EFFECTIVE DATE.This section is effective June 30, 2007.103.15    Sec. 5. Minnesota Statutes 2006, section 124D.111, subdivision 1, is amended to read:103.16    Subdivision 1. School lunch aid computation. Each school year, the state must pay 103.17participants in the national school lunch program the amount of 
         10.5 12 cents for each full 103.18paid, reduced, and free student lunch served to students.103.19    Sec. 6. Minnesota Statutes 2006, section 126C.15, subdivision 2, is amended to read:103.20    Subd. 2. Building allocation. (a) A district must allocate its compensatory revenue 103.21to each school building in the district where the children who have generated the revenue 103.22are served unless the school district has received permission under section 50 to allocate 103.23compensatory revenue according to student performance measures developed by the 103.24school board.103.25    (b) Notwithstanding paragraph (a), a district may allocate up to five percent of the 103.26amount of compensatory revenue that the district receives to school sites according to a 103.27plan adopted by the school board.103.28    (c) For the purposes of this section and section 
         126C.05, subdivision 3, "building" 103.29means education site as defined in section 
         123B.04, subdivision 1.103.30    (d) If the pupil is served at a site other than one owned and operated by the district, 103.31the revenue shall be paid to the district and used for services for pupils who generate the 103.32revenue.103.33    (e) A district with school building openings, school building closings, changes 103.34in attendance area boundaries, or other changes in programs or student demographics 104.1between the prior year and the current year may reallocate compensatory revenue among 104.2sites to reflect these changes. A district must report to the department any adjustments it 104.3makes according to this paragraph and the department must use the adjusted compensatory 104.4revenue allocations in preparing the report required under section 123B.76, subdivision 3, 104.5paragraph (c).104.6    Sec. 7. Minnesota Statutes 2006, section 126C.41, is amended by adding a subdivision 104.7to read:104.8    Subd. 6.Levy authority for unfunded severance and retirement costs.(a) A 104.9school district qualifies for eligibility under this section if the district:104.10    (1) participated in the cooperative secondary facilities program;104.11    (2) consolidated with at least two other school districts; and104.12    (3) has unfunded severance or retirement costs.104.13    (b) An eligible school district may annually levy up to $150,000 for unfunded 104.14severance or retirement costs. This levy authority expires after taxes payable in 2017.104.15    (c) A school district that levies under this section must reserve the proceeds of the 104.16levy and spend those amounts only for unfunded severance or retirement costs.104.17EFFECTIVE DATE.This section is effective for taxes payable in 2008.104.18    Sec. 8. Minnesota Statutes 2006, section 126C.48, subdivision 2, is amended to read:104.19    Subd. 2. Notice to commissioner; forms. By October 7 of each year each 104.20district must notify the commissioner of the proposed levies in compliance with the levy 104.21limitations of this chapter and chapters 120B, 122A, 123A, 123B, 124D, 125A, 127A, and 104.22136D. A school district that has reached an agreement with its home county auditor to 104.23extend the date of certification of its proposed levy under section 275.065, subdivision 1, 104.24must submit its notice of proposed levies to the commissioner no later than October 10 of 104.25each year. By January 7 of each year each district must notify the commissioner of the 104.26final levies certified. The commissioner shall prescribe the form of these notifications and 104.27may request any additional information necessary to compute certified levy amounts.104.28    Sec. 9. Minnesota Statutes 2006, section 275.065, subdivision 1, is amended to read:104.29    Subdivision 1. Proposed levy. (a) Notwithstanding any law or charter to the 104.30contrary, on or before September 15, each taxing authority, other than a school district, 104.31shall adopt a proposed budget and shall certify to the county auditor the proposed or, in 104.32the case of a town, the final property tax levy for taxes payable in the following year.105.1    (b) On or before September 30, each school district that has not mutually agreed 105.2with its home county to extend this date shall certify to the county auditor the proposed 105.3property tax levy for taxes payable in the following year. Each school district that has 105.4agreed with its home county to delay the certification of its proposed property tax levy 105.5must certify its proposed property tax levy for the following year no later than October 105.67. The school district shall certify the proposed levy as:105.7    (1) a specific dollar amount by school district fund, broken down between 105.8voter-approved and non-voter-approved levies and between referendum market value 105.9and tax capacity levies; or105.10    (2) the maximum levy limitation certified by the commissioner of education 105.11according to section   
         126C.48, subdivision 1. 105.12    (c) If the board of estimate and taxation or any similar board that establishes 105.13maximum tax levies for taxing jurisdictions within a first class city certifies the maximum 105.14property tax levies for funds under its jurisdiction by charter to the county auditor by 105.15September 15, the city shall be deemed to have certified its levies for those taxing 105.16jurisdictions.105.17    (d) For purposes of this section, "taxing authority" includes all home rule and 105.18statutory cities, towns, counties, school districts, and special taxing districts as defined 105.19in section   
         275.066. Intermediate school districts that levy a tax under chapter 124 or 105.20136D, joint powers boards established under sections   
         123A.44 to   
         123A.446, and Common 105.21School Districts No. 323, Franconia, and No. 815, Prinsburg, are also special taxing 105.22districts for purposes of this section. 105.23    Sec. 10. Minnesota Statutes 2006, section 275.065, subdivision 1a, is amended to read:105.24    Subd. 1a. Overlapping jurisdictions. In the case of a taxing authority lying in 105.25two or more counties, the home county auditor shall certify the proposed levy and the 105.26proposed local tax rate to the other county auditor by October 5, unless the home county 105.27has agreed to delay the certification of its proposed property tax levy, in which case the 105.28home county auditor shall certify the proposed levy and the proposed local tax rate to the 105.29other county auditor by October 10. The home county auditor must estimate the levy or 105.30rate in preparing the notices required in subdivision 3, if the other county has not certified 105.31the appropriate information. If requested by the home county auditor, the other county 105.32auditor must furnish an estimate to the home county auditor.105.33    Sec. 11. PLAINVIEW-ELGIN-MILLVILLE; CONSOLIDATED DISTRICT 105.34FUND BALANCE CALCULATIONS.106.1    Subdivision 1.Fiscal year 2007 replacement aid.Independent School District 106.2No. 2899, Plainview-Elgin-Millville, is eligible for replacement aid to offset its excess 106.3fund balance penalty for fiscal year 2007.106.4    Subd. 2.Fiscal years 2008 and 2009.Upon receipt of appropriate documentation 106.5from Independent School District No. 2899, Plainview-Elgin-Millville, the Department of 106.6Education must adjust the district's three-year adjusted average fund balances required 106.7under Minnesota Statutes, sections 124D.135, 124D.16 and 124D.20. The department 106.8shall adjust the fiscal year 2006 account balances reported by former Independent School 106.9Districts Nos. 806, Elgin-Millville, and 810, Plainview, to reflect any permanent account 106.10of fund transfers made under Minnesota Statutes, section 123B.79.106.11EFFECTIVE DATE.This section is effective the day following final enactment.106.12    Sec. 12. FUND TRANSFER.106.13    Subdivision 1.Brainerd.Notwithstanding Minnesota Statutes, section 123B.79 106.14or 123B.80, on June 30, 2007, Independent School District No. 181, Brainerd, may 106.15permanently transfer up to $750,000 from its reserved for operating capital account to its 106.16undesignated general fund balance without making a levy reduction.106.17    Subd. 2.Campbell-Tintah.Notwithstanding Minnesota Statutes, section 123B.79 106.18or 123B.80, on June 30, 2007, Independent School District No. 852, Campbell-Tintah, 106.19may permanently transfer up to $100,000 from its reserved for operating capital account 106.20to its undesignated general fund without making a levy reduction.106.21    Subd. 3.Comfrey.Notwithstanding Minnesota Statutes, section 123B.79 106.22or 123B.80, on June 30, 2007, Independent School District No. 81, Comfrey, may 106.23permanently transfer up to $250,000 from its reserved for operating capital account to its 106.24undesignated general fund balance without making a levy reduction.106.25    Subd. 4.Floodwood.Notwithstanding Minnesota Statutes, section 123B.79 106.26or 123B.80, on June 30, 2007, Independent School District No. 698, Floodwood, 106.27may transfer up to $227,000 from its reserved for disabled accessibility account to its 106.28undesignated general fund balance without making a levy reduction.106.29    Subd. 5.International Falls.Notwithstanding Minnesota Statutes, section 123B.79 106.30or 123B.80, on June 30, 2007, Independent School District No. 361, International Falls, 106.31may permanently transfer up to $100,000 from its reserved for operating capital account 106.32to its undesignated general fund balance without making a levy reduction.106.33    Subd. 6.Jackson County Central.Notwithstanding Minnesota Statutes, section 106.34123B.79 or 123B.80, on June 30, 2007, Independent School District No. 2895, Jackson 107.1County Central, may permanently transfer up to $300,000 from its reserved for operating 107.2capital account to its undesignated general fund balance without making a levy reduction.107.3    Subd. 7.Red Rock Central.Notwithstanding Minnesota Statutes, section 123B.79 107.4or 123B.80, on June 30, 2007, Independent School District No. 2884, Red Rock Central, 107.5may permanently transfer up to $81,000 from its reserved for disabled accessibility 107.6account to its undesignated general fund balance without making a levy reduction. 107.7    Subd. 8.Windom.Notwithstanding Minnesota Statutes, section 123B.79 or 107.8123B.80, on June 30, 2007, Independent School District No. 177, Windom, may transfer 107.9up to $50,000 from its reserved for operating capital account to its undesignated general 107.10fund balance without making a levy reduction.107.11EFFECTIVE DATE.This section is effective the day following final enactment.107.12    Sec. 13. APPROPRIATIONS.107.13    Subdivision 1.Department of Education.The sums indicated in this section are 107.14appropriated from the general fund to the Department of Education for the fiscal years 107.15designated.107.16    Subd. 2.School lunch.For school lunch aid according to Minnesota Statutes, 107.17section 124D.111, and Code of Federal Regulations, title 7, section 210.17:

107.18$12,022,000.....2008107.19$12,166,000.....2009

107.20    Subd. 3.Traditional school breakfast; kindergarten milk.For traditional school 107.21breakfast aid and kindergarten milk under Minnesota Statutes, sections 124D.1158 and 107.22124D.118:

107.23$5,460,000.....2008107.24$5,695,000.....2009

107.25    Subd. 4.Summer food service replacement aid.For summer food service 107.26replacement aid under Minnesota Statutes, section 124D.119:

107.27$150,000.....2008107.28$150,000.....2009

107.29    Subd. 5.Plainview-Elgin-Millville fund balance replacement aid.107.30    For fund balance replacement aid for Independent School District No. 2899, 107.31Plainview-Elgin-Millville:

107.32$17,000.....2008

108.1    This is a onetime appropriation.108.2    Sec. 14.  REPEALER.108.3Minnesota Statutes 2006, section 123B.749, is repealed.108.4ARTICLE 6108.5LIBRARIES108.6    Section 1. Minnesota Statutes 2006, section 134.31, is amended by adding a 108.7subdivision to read:108.8    Subd. 4a.Services to the blind and physically handicapped.The Minnesota 108.9Department of Education shall provide specialized services to the blind and physically 108.10handicapped through the Minnesota Library for the Blind and Physically Handicapped 108.11under a cooperative plan with the National Library Services for the Blind and Physically 108.12Handicapped of the Library of Congress.108.13    Sec. 2. DEPARTMENT OF EDUCATION; LIBRARY APPROPRIATIONS.108.14    Subdivision 1.Department of Education.The sums indicated in this section are 108.15appropriated from the general fund to the Department of Education for the fiscal years 108.16designated.108.17    Subd. 2.Basic system support.For basic system support grants under Minnesota 108.18Statutes, section 134.355:

108.19$9,182,000.....2008108.20$13,138,000.....2009

108.21    The 2008 appropriation includes $857,000 for 2007 and $8,325,000 for 2008.108.22    The 2009 appropriation includes $925,000 for 2008 and $12,213,000 for 2009.108.23    Subd. 3.Multicounty, multitype library systems.For grants under Minnesota 108.24Statutes, sections 134.353 and 134.354, to multicounty, multitype library systems:

108.25$1,260,000.....2008108.26$1,300,000.....2009

108.27    The 2008 appropriation includes $90,000 for 2007 and $1,170,000 for 2008.108.28    The 2009 appropriation includes $130,000 for 2008 and $1,170,000 for 2009.108.29    Subd. 4.Electronic library for Minnesota.For statewide licenses to online 108.30databases selected in cooperation with the Minnesota Office of Higher Education for 109.1school media centers, public libraries, state government agency libraries, and public 109.2or private college or university libraries:

109.3$900,000.....2008109.4$900,000.....2009

109.5    Any balance in the first year does not cancel but is available in the second year.109.6    Subd. 5.Regional library telecommunications aid.For regional library 109.7telecommunications aid under Minnesota Statutes, section 134.355:

109.8$2,190,000.....2008109.9$2,300,000.....2009

109.10    The 2008 appropriation includes $120,000 for 2007 and $2,070,000 for 2008.109.11    The 2009 appropriation includes $230,000 for 2008 and $2,070,000 for 2009.109.12    Subd. 6.Hennepin County and Minneapolis library systems merger.For costs 109.13attributable to the library system merger:

109.14$4,500,000.....2008

109.15    If the Hennepin County and Minneapolis city library systems do not merge, any 109.16unexpended balance remaining in this appropriation must be allocated to increase the 109.17fiscal year 2008 entitlement for Basic System Support Grants under Minnesota Statutes, 109.18section 134.355.109.19    This appropriation is available through June 30, 2009.109.20    This is a onetime appropriation.109.21ARTICLE 7109.22STATE AGENCIES109.23    Section 1. [127A.065] CROSS-SUBSIDY REPORT.109.24    By January 10, the commissioner of education shall submit an annual report to the 109.25legislative committees having jurisdiction over kindergarten through grade 12 education 109.26on the amount each district is cross-subsidizing special education costs with general 109.27education revenue.109.28    Sec. 2. Minnesota Statutes 2006, section 517.08, subdivision 1c, is amended to read:109.29    Subd. 1c. Disposition of license fee. (a) Of the marriage license fee collected 109.30pursuant to subdivision 1b, paragraph (a), $15 must be retained by the county. The local 109.31registrar must pay $85 to the commissioner of finance to be deposited as follows:109.32    (1) $50 in the general fund;110.1    (2) $3 in the state government special revenue fund to be appropriated to the 110.2commissioner of education public safety for parenting time centers under section 
         119A.37;110.3    (3) $2 in the special revenue fund to be appropriated to the commissioner of health 110.4for developing and implementing the MN ENABL program under section 
         145.9255;110.5    (4) $25 in the special revenue fund is appropriated to the commissioner of 110.6employment and economic development for the displaced homemaker program under 110.7section 
         116L.96; and110.8    (5) $5 in the special revenue fund is appropriated to the commissioner of human 110.9services for the Minnesota Healthy Marriage and Responsible Fatherhood Initiative under 110.10section 
         256.742.110.11    (b) Of the $30 fee under subdivision 1b, paragraph (b), $15 must be retained by the 110.12county. The local registrar must pay $15 to the commissioner of finance to be deposited 110.13as follows:110.14    (1) $5 as provided in paragraph (a), clauses (2) and (3); and110.15    (2) $10 in the special revenue fund is appropriated to the commissioner of 110.16employment and economic development for the displaced homemaker program under 110.17section 
         116L.96.110.18    (c) The increase in the marriage license fee under paragraph (a) provided for in Laws 110.192004, chapter 273, and disbursement of the increase in that fee to the special fund for the 110.20Minnesota Healthy Marriage and Responsible Fatherhood Initiative under paragraph (a), 110.21clause (5), is contingent upon the receipt of federal funding under United States Code, title 110.2242, section 1315, for purposes of the initiative.110.23    Sec. 3. RULEMAKING AUTHORITY; CAREER AND TECHNICAL 110.24EDUCATION.110.25    The commissioner of education shall adopt rules under Minnesota Statutes, chapter 110.2614, for the administration of career and technical education programs for grades 7 through 110.2712 under Minnesota Statutes, sections 124D.452, 124D.4531, and 124D.454, to ensure 110.28that the career and technical levy and programs can be administered to serve students 110.29under the current state and local organizational structures.110.30EFFECTIVE DATE.This section is effective the day following final enactment.110.31    Sec. 4. APPROPRIATIONS; DEPARTMENT OF EDUCATION.111.1    Subdivision 1.Department of Education.Unless otherwise indicated, the sums 111.2indicated in this section are appropriated from the general fund to the Department of 111.3Education for the fiscal years designated.111.4    Subd. 2.Department.(a) For the Department of Education:

111.5$22,169,000.....2008111.6$22,653,000.....2009

111.7    Any balance in the first year does not cancel but is available in the second year.111.8    (b) $7,000 in fiscal year 2008 is for GRAD test rulemaking.111.9    (c) $7,000 in fiscal year 2008 is for rulemaking under section 3.111.10    (d) $40,000 each year is for an early hearing loss intervention coordinator under 111.11Minnesota Statutes, section 125A.63, subdivision 5.111.12    (e) $260,000 each year is for the Minnesota Children's Museum.111.13    (f) $41,000 each year is for the Minnesota Academy of Science.111.14    (g) $619,000 in fiscal year 2008 and $632,000 in fiscal year 2009 are for the Board 111.15of Teaching.111.16    (h) $163,000 in fiscal year 2008 and $171,000 in fiscal year 2009 are for the Board 111.17of School Administrators.111.18    (i) $50,000 each year is for the Duluth Children's Museum.111.19    (j) The expenditures of federal grants and aids as shown in the biennial budget 111.20document and its supplements are approved and appropriated and shall be spent as 111.21indicated.111.22    (k) None of the amounts appropriated under this subdivision may be used for 111.23Minnesota's Washington, D.C., office.111.24    Sec. 5. APPROPRIATIONS; MINNESOTA STATE ACADEMIES.111.25    The sums indicated in this section are appropriated from the general fund to the 111.26Minnesota State Academies for the Deaf and the Blind for the fiscal years designated:

111.27$ 11,603,000.....2008111.28$ 11,730,000.....2009

111.29    Any balance in the first year does not cancel but is available in the second year.111.30    Sec. 6. APPROPRIATIONS; PERPICH CENTER FOR ARTS EDUCATION.111.31    The sums indicated in this section are appropriated from the general fund to the 111.32Perpich Center for Arts Education for the fiscal years designated:

112.1$ 6,929,000.....2008112.2$7,090,000.....2009

112.3    Any balance in the first year does not cancel but is available in the second year.112.4    Sec. 7. APPROPRIATIONS; DEPARTMENT OF PUBLIC SAFETY.112.5    The sums indicated in this section are appropriated from the state government 112.6special revenue fund to the Department of Public Safety for the fiscal years designated to 112.7fund parenting time centers as described in Minnesota Statutes, section 119A.37:

112.8$96,000.....2008112.9$96,000.....2009

112.10ARTICLE 8112.11PUPIL TRANSPORTATION STANDARDS112.12    Section 1. Minnesota Statutes 2006, section 123B.88, subdivision 12, is amended to 112.13read:112.14    Subd. 12. Early childhood family education participants. Districts may provide 112.15bus transportation along regular school bus routes when space is available for participants 112.16in early childhood family education programs and school readiness programs if these 112.17services do not result in an increase in the district's expenditures for transportation. 112.18The costs allocated to these services, as determined by generally accepted accounting 112.19principles, shall be considered part of the authorized cost for regular transportation for 112.20the purposes of section 
         123B.92. 112.21EFFECTIVE DATE.This section is effective the day following final enactment 112.22and applies for fiscal year 2007 and later.112.23    Sec. 2. Minnesota Statutes 2006, section 123B.90, subdivision 2, is amended to read:112.24    Subd. 2. Student training. (a) Each district must provide public school pupils 112.25enrolled in kindergarten through grade 10 with age-appropriate school bus safety training, 112.26as described in this section, of the following concepts:112.27    (1) transportation by school bus is a privilege and not a right;112.28    (2) district policies for student conduct and school bus safety;112.29    (3) appropriate conduct while on the school bus;112.30    (4) the danger zones surrounding a school bus;112.31    (5) procedures for safely boarding and leaving a school bus;112.32    (6) procedures for safe street or road crossing; and113.1    (7) school bus evacuation.113.2    (b) Each nonpublic school located within the district must provide all nonpublic 113.3school pupils enrolled in kindergarten through grade 10 who are transported by school 113.4bus at public expense and attend school within the district's boundaries with training as 113.5required in paragraph (a).113.6    (c) Students enrolled in kindergarten through grade 6 who are transported by school 113.7bus and are enrolled during the first or second week of school must receive the school bus 113.8safety training competencies by the end of the third week of school. Students enrolled in 113.9grades 7 through 10 who are transported by school bus and are enrolled during the first or 113.10second week of school and have not previously received school bus safety training must 113.11receive the training or receive bus safety instructional materials by the end of the sixth 113.12week of school. Students taking driver's training instructional classes and other students in 113.13grades 9 and 10 must receive training in the laws and proper procedures when operating a 113.14motor vehicle in the vicinity of a school bus as required by section 169.446, subdivisions 2 113.15and 3. Students enrolled in kindergarten through grade 10 who enroll in a school after the 113.16second week of school and are transported by school bus and have not received training 113.17in their previous school district shall undergo school bus safety training or receive bus 113.18safety instructional materials within four weeks of the first day of attendance. Upon 113.19request of the superintendent of schools, the school transportation safety director in each 113.20district must certify to the superintendent of schools annually that all students transported 113.21by school bus within the district have received the school bus safety training according to 113.22this section. Upon request of the superintendent of the school district where the nonpublic 113.23school is located, the principal or other chief administrator of each nonpublic school must 113.24certify annually to the school transportation safety director of the district in which the 113.25school is located that the school's students transported by school bus at public expense 113.26have received training according to this section.113.27    (d) A district and a nonpublic school with students transported by school bus at 113.28public expense may provide kindergarten pupils with bus safety training before the first 113.29day of school.113.30    (e) A district and a nonpublic school with students transported by school bus at 113.31public expense may also provide student safety education for bicycling and pedestrian 113.32safety, for students enrolled in kindergarten through grade 5.113.33    (f) A district and a nonpublic school with students transported by school bus at 113.34public expense must make reasonable accommodations for the school bus safety training 113.35of pupils known to speak English as a second language and pupils with disabilities.114.1    (g) The district and a nonpublic school with students transported by school bus at 114.2public expense must provide students enrolled in kindergarten through grade 3 school bus 114.3safety training twice during the school year.114.4    (h) A district and a nonpublic school with students transported by school bus at public 114.5expense must conduct a school bus evacuation drill at least once during the school year.114.6EFFECTIVE DATE.This section is effective July 1, 2007.114.7    Sec. 3. Minnesota Statutes 2006, section 169.01, is amended by adding a subdivision 114.8to read:114.9    Subd. 92.Cellular phone."Cellular phone" means a cellular, analog, wireless, or 114.10digital telephone capable of sending or receiving telephone or text messages without 114.11an access line for service.114.12    Sec. 4. Minnesota Statutes 2006, section 169.443, is amended by adding a subdivision 114.13to read:114.14    Subd. 9.Personal cellular phone call prohibition.A school bus driver may not 114.15operate a school bus while communicating over, or otherwise operating, a cellular phone 114.16for personal reasons, whether hand-held or hands free, when the vehicle is in motion.114.17EFFECTIVE DATE.This section is effective July 1, 2007.114.18    Sec. 5. Minnesota Statutes 2006, section 169.447, subdivision 2, is amended to read:114.19    Subd. 2. Driver seat belt.New School buses and Head Start buses manufactured 114.20after December 31, 1994, must be equipped with driver seat belts and seat belt assemblies 114.21of the type described in section 
         169.685, subdivision 3. School bus drivers and Head 114.22Start bus drivers must use these seat belts. 114.23EFFECTIVE DATE.This section is effective July 1, 2007.114.24    Sec. 6. Minnesota Statutes 2006, section 169.4501, subdivision 1, is amended to read:114.25    Subdivision 1. National standards adopted. Except as provided in sections 114.26169.4502
          and 
         169.4503, the construction, design, equipment, and color of types A, B, C, 114.27and D and multifunctional school activity bus school buses used for the transportation 114.28of school children shall meet the requirements of the "bus chassis standards" and "bus 114.29body standards" in the 2000 2005 edition of the "National School Transportation 114.30Specifications and Procedures" adopted by the National Conference Congress on School 114.31Transportation. Except as provided in section 
         169.4504, the construction, design, and 115.1equipment of types A, B, C, and D and multifunctional school activity bus school buses 115.2used for the transportation of students with disabilities also shall meet the requirements 115.3of the "specially equipped school bus standards" in the 2000 2005 National School 115.4Transportation Specifications and Procedures. The "bus chassis standards," "bus body 115.5standards," and "specially equipped school bus standards" sections of the 2000 2005115.6edition of the "National School Transportation Specifications and Procedures" are 115.7incorporated by reference in this chapter. 115.8EFFECTIVE DATE.This section is effective January 1, 2008.115.9    Sec. 7. Minnesota Statutes 2006, section 169.4501, subdivision 2, is amended to read:115.10    Subd. 2. Applicability. (a) The standards adopted in this section and sections 115.11169.4502
          and 
         169.4503, govern the construction, design, equipment, and color of school 115.12buses used for the transportation of school children, when owned or leased and operated 115.13by a school or privately owned or leased and operated under a contract with a school. 115.14Each school, its officers and employees, and each person employed under the contract is 115.15subject to these standards. 115.16    (b) The standards apply to school buses manufactured after October 31, 2004115.17December 31, 2007. Buses complying with the standards when manufactured need not 115.18comply with standards established later except as specifically provided for by law.115.19    (c) A school bus manufactured on or before October 31, 2004 December 31, 115.202007, must conform to the Minnesota standards in effect on the date the vehicle was 115.21manufactured except as specifically provided for in law.115.22    (d) A new bus body may be remounted on a used chassis provided that the remounted 115.23vehicle meets state and federal standards for new buses which are current at the time of the 115.24remounting. Permission must be obtained from the commissioner of public safety before 115.25the remounting is done. A used bus body may not be remounted on a new or used chassis.115.26EFFECTIVE DATE.This section is effective January 1, 2008.115.27    Sec. 8. Minnesota Statutes 2006, section 169.4502, subdivision 5, is amended to read:115.28    Subd. 5. Electrical system; battery. (a) The storage battery, as established by the 115.29manufacturer's rating, must be of sufficient capacity to care for starting, lighting, signal 115.30devices, heating, and other electrical equipment. In a bus with a gas-powered chassis, the 115.31battery or batteries must provide a minimum of 800 cold cranking amperes. In a bus 115.32with a diesel-powered chassis, the battery or batteries must provide a minimum of 1050 115.33cold cranking amperes.116.1    (b) In a type B bus with a gross vehicle weight rating of 15,000 pounds or more, and 116.2type C and D buses, the battery shall be temporarily mounted on the chassis frame. The 116.3final location of the battery and the appropriate cable lengths in these buses must comply 116.4with the SBMI design objectives booklet.116.5    (c) All batteries shall be mounted according to chassis manufacturers' 116.6recommendations.116.7    (d) In a type C bus, other than are powered by diesel fuel, a battery providing at least 116.8550 cold cranking amperes may be installed in the engine compartment only if used in 116.9combination with a generator or alternator of at least 120 130 amperes.116.10    (e) A bus with a gross vehicle weight rating of 15,000 pounds or less may be 116.11equipped with a battery to provide a minimum of 550 cold cranking amperes only if used 116.12in combination with an alternator of at least 80 130 amperes. This paragraph does not 116.13apply to those buses with wheelchair lifts or diesel engines.116.14EFFECTIVE DATE.This section is effective January 1, 2008.116.15    Sec. 9. Minnesota Statutes 2006, section 169.4503, subdivision 13, is amended to read:116.16    Subd. 13. Identification. (a) Each bus shall, in the beltline, identify the school 116.17district serviced, or company name, or owner of the bus. Numbers necessary for 116.18identification must appear on the sides and rear of the bus. Symbols or letters may 116.19be used on the outside of the bus near the entrance door for student identification. A 116.20manufacturer's nameplate or logo may be placed on the bus.116.21    (b) Effective December 31, 1994, all type A, B, C, and D buses sold must display 116.22lettering "Unlawful to pass when red lights are flashing" on the rear of the bus. The 116.23lettering shall be in two-inch black letters on school bus yellow background. This message 116.24shall be displayed directly below the upper window of the rear door. On rear engine buses, 116.25it shall be centered at approximately the same location. Only signs and lettering approved 116.26or required by state law may be displayed.116.27EFFECTIVE DATE.This section is effective January 1, 2008.116.28    Sec. 10. Minnesota Statutes 2006, section 169.4503, subdivision 20, is amended to 116.29read:116.30    Subd. 20. Seat and crash barriers.(a) All restraining barriers and passenger seats 116.31shall be covered with a material that has fire retardant or fire block characteristics.116.32    (b) All seats must have a minimum cushion depth of 15 inches and a seat back 116.33height of at least 20 inches above the seating reference point.117.1EFFECTIVE DATE.This section is effective January 1, 2008.117.2    Sec. 11. Minnesota Statutes 2006, section 171.02, subdivision 2, is amended to read:117.3    Subd. 2. Driver's license classifications, endorsements, exemptions. (a) Drivers' 117.4licenses are classified according to the types of vehicles that may be driven by the holder 117.5of each type or class of license. The commissioner may, as appropriate, subdivide the 117.6classes listed in this subdivision and issue licenses classified accordingly.117.7    (b) Except as provided in paragraph (c), clauses (1) and (2), and subdivision 2a, no 117.8class of license is valid to operate a motorcycle, school bus, tank vehicle, double-trailer 117.9or triple-trailer combination, vehicle transporting hazardous materials, or bus, unless 117.10so endorsed. There are four general classes of licenses as described in paragraphs (c) 117.11through (f).117.12    (c) Class D drivers' licenses are valid for:117.13    (1) operating all farm trucks if the farm truck is:117.14    (i) controlled and operated by a farmer, including operation by an immediate family 117.15member or an employee of the farmer;117.16    (ii) used to transport agricultural products, farm machinery, or farm supplies, 117.17including hazardous materials, to or from a farm;117.18    (iii) not used in the operations of a common or contract motor carrier as governed by 117.19Code of Federal Regulations, title 49, part 365; and117.20    (iv) used within 150 miles of the farm;117.21    (2) notwithstanding paragraph (b), operating an authorized emergency vehicle, 117.22as defined in section 
         169.01, subdivision 5, whether or not in excess of 26,000 pounds 117.23gross vehicle weight;117.24    (3) operating a recreational vehicle as defined in section 
         168.011, subdivision 25, 117.25that is operated for personal use;117.26    (4) operating all single-unit vehicles except vehicles with a gross vehicle weight of 117.27more than 26,000 pounds, vehicles designed to carry more than 15 passengers including 117.28the driver, and vehicles that carry hazardous materials;117.29    (5) notwithstanding paragraph (d), operating a type A school bus or a multifunctional 117.30school activity bus without a school bus endorsement if:117.31    (i) the bus has a gross vehicle weight of 10,000 pounds or less;117.32    (ii) the bus is designed to transport 15 or fewer passengers, including the driver; and117.33    (iii) the requirements of subdivision 2a are satisfied, as determined by the 117.34commissioner;118.1    (6) operating any vehicle or combination of vehicles when operated by a licensed 118.2peace officer while on duty; and118.3    (7) towing vehicles if:118.4    (i) the towed vehicles have a gross vehicle weight of 10,000 pounds or less; or118.5    (ii) the towed vehicles have a gross vehicle weight of more than 10,000 pounds and 118.6the combination of vehicles has a gross vehicle weight of 26,000 pounds or less.118.7    (d) Class C drivers' licenses are valid for:118.8    (1) operating class D motor vehicles;118.9    (2) with a hazardous materials endorsement, transporting hazardous materials 118.10in class D vehicles; and118.11    (3) with a school bus endorsement, operating school buses designed to transport 15 118.12or fewer passengers, including the driver.118.13    (e) Class B drivers' licenses are valid for:118.14    (1) operating all class C motor vehicles, class D motor vehicles, and all other 118.15single-unit motor vehicles including, with a passenger endorsement, buses; and118.16    (2) towing only vehicles with a gross vehicle weight of 10,000 pounds or less.118.17    (f) Class A drivers' licenses are valid for operating any vehicle or combination of 118.18vehicles.118.19EFFECTIVE DATE.This section is effective January 1, 2008.118.20    Sec. 12. Minnesota Statutes 2006, section 171.02, subdivision 2a, is amended to read:118.21    Subd. 2a. Exception for certain school bus drivers. Notwithstanding subdivision 118.222, paragraph (c), the holder of a class D driver's license, without a school bus endorsement, 118.23may operate a type A school bus described in subdivision 2, paragraph (b), under the 118.24following conditions:118.25    (a) The operator is an employee of the entity that owns, leases, or contracts for the 118.26school bus and is not solely hired to provide transportation services under this subdivision.118.27    (b) The operator drives the school bus only from points of origin to points of 118.28destination, not including home-to-school trips to pick up or drop off students.118.29    (c) The operator is prohibited from using the eight-light system. Violation of this 118.30paragraph is a misdemeanor.118.31    (d) The operator's employer has adopted and implemented a policy that provides for 118.32annual training and certification of the operator in:118.33    (1) safe operation of the type of school bus the operator will be driving;118.34    (2) understanding student behavior, including issues relating to students with 118.35disabilities;119.1    (3) encouraging orderly conduct of students on the bus and handling incidents of 119.2misconduct appropriately;119.3    (4) knowing and understanding relevant laws, rules of the road, and local school 119.4bus safety policies;119.5    (5) handling emergency situations; and119.6    (6) safe loading and unloading of students.119.7    (e) A background check or background investigation of the operator has been 119.8conducted that meets the requirements under section 
         122A.18, subdivision 8, or 
         123B.03119.9for teachers; section 
         144.057 or chapter 245C for day care employees; or section 
         171.321, 119.10subdivision 3
         , for all other persons operating a type A school bus under this subdivision.119.11    (f) Operators shall submit to a physical examination as required by section 
         171.321, 119.12subdivision 2
         .119.13    (g) The operator's driver's license is verified annually by the entity that owns, leases, 119.14or contracts for the school bus.119.15    (h) A person who sustains a conviction, as defined under section 
         609.02, of violating 119.16section 
         169A.25, 
         169A.26, 
         169A.27, 
         169A.31, 
         169A.51, or 
         169A.52, or a similar statute 119.17or ordinance of another state is precluded from operating a school bus for five years 119.18from the date of conviction.119.19    (i) A person who has ever been convicted of a disqualifying offense as defined in 119.20section 
         171.3215, subdivision 1, paragraph (c), may not operate a school bus under this 119.21subdivision.119.22    (j) A person who sustains a conviction, as defined under section 
         609.02, of a fourth 119.23moving offense in violation of chapter 169 is precluded from operating a school bus for 119.24one year from the date of the last conviction.119.25    (k) Students riding the school bus must have training required under section 119.26123B.90, subdivision 2
         .119.27    (l) An operator must be trained in the proper use of child safety restraints as set 119.28forth in the National Highway Traffic Safety Administration's "Guideline for the Safe 119.29Transportation of Pre-school Age Children in School Buses.," if child safety restraints are 119.30used by the passengers.119.31    (m) Annual certification of the requirements listed in this subdivision must be 119.32maintained under separate file at the business location for each operator licensed under 119.33this subdivision and subdivision 2, paragraph (b), clause (5). The business manager, 119.34school board, governing body of a nonpublic school, or any other entity that owns, 119.35leases, or contracts for the school bus operating under this subdivision is responsible 119.36for maintaining these files for inspection.120.1    (n) The school bus must bear a current certificate of inspection issued under section 120.2169.451
         .120.3    (o) The word "School" on the front and rear of the bus must be covered by a sign 120.4that reads "Activities" when the bus is being operated under authority of this subdivision.120.5EFFECTIVE DATE.This section is effective January 1, 2008.120.6    Sec. 13. Minnesota Statutes 2006, section 171.321, subdivision 4, is amended to read:120.7    Subd. 4. Training. (a) No person shall drive a class A, B, C, or D school bus when 120.8transporting school children to or from school or upon a school-related trip or activity 120.9without having demonstrated sufficient skills and knowledge to transport students in 120.10a safe and legal manner.120.11    (b) A bus driver must have training or experience that allows the driver to meet at 120.12least the following competencies:120.13    (1) safely operate the type of school bus the driver will be driving;120.14    (2) understand student behavior, including issues relating to students with 120.15disabilities;120.16    (3) encourage orderly conduct of students on the bus and handle incidents of 120.17misconduct appropriately;120.18    (4) know and understand relevant laws, rules of the road, and local school bus 120.19safety policies;120.20    (5) handle emergency situations; and120.21    (6) safely load and unload students.120.22    (c) The commissioner of public safety shall develop a comprehensive model 120.23school bus driver training program and model assessments for school bus driver training 120.24competencies, which are not subject to chapter 14. A school district, nonpublic school, or 120.25private contractor may use alternative assessments for bus driver training competencies 120.26with the approval of the commissioner of public safety. A driver may receive at least eight 120.27hours of school bus in-service training any year, as an alternative to being assessed for bus 120.28driver competencies after the initial year of being assessed for bus driver competencies. 120.29The employer shall keep the assessment or a record of the in-service training for the 120.30current period available for inspection by representatives of the commissioner.120.31EFFECTIVE DATE.This section is effective July 1, 2007.120.32    Sec. 14. RULES REVISED: COMMISSIONER OF PUBLIC SAFETY.121.1    Subdivision 1.Rules revised under the good cause exemption.The commissioner 121.2of public safety must amend and adopt the revisions to the rules listed  in subdivisions 2 to 121.38 under the good cause exemption to the rulemaking process under Minnesota Statutes, 121.4section 14.388, subdivision 1, clause (3).121.5    Subd. 2.Minnesota Rules, part 7470.0500.The commissioner of public safety 121.6must amend Minnesota Rules, part 7470.0500, by replacing two obsolete references to the 121.7Department of Children, Families, and Learning, with a reference to the Department of 121.8Public Safety and removing references to specifically repealed rules.121.9    Subd. 3.Minnesota Rules, part 7470.0700.The commissioner of public safety 121.10must amend Minnesota Rules, part 7470.0700, as follows: 121.11    (1) for the points assigned to school bus equipment defects, strike the reference to 121.12"orange" school buses and include a new school bus color exemption for multifunctional 121.13school activity buses; and121.14    (2) replace the references to type I and type II school buses with type A, B, C, 121.15or D school buses.121.16    Subd. 4.Minnesota Rules, part 7470.1000.The commissioner of public safety 121.17must amend Minnesota Rules, part 7470.1000, to: 121.18    (1) include multifunctional school activity buses in the headnote; 121.19    (2) update subpart 1 to include multifunctional school activity buses as a type of 121.20school bus listed after bus types A, B, C, and D; 121.21    (3) modify subpart 2 to clarify that the prohibition against loading or unloading while 121.22adjacent to a turn lane applies only when it is a right-hand turn lane and does not prohibit a 121.23bus from loading or unloading at the side of the road when there is a center turn lane; and 121.24    (3) expand the exception that allows service dogs on  school buses to include all 121.25companion animals.121.26    Subd. 5.Minnesota Rules, part 7470.1100.The commissioner of public safety 121.27must amend Minnesota Rules, part 7470.1100, to include multifunctional school activity 121.28buses in the headnote and amend subpart 1 to include multifunctional school activity buses 121.29as a type of school bus listed after bus types A, B, C, and D. The commissioner must also 121.30amend item B of this part to require drivers to use prewarning flashing signals, flashing 121.31red signals, and stop signals arms on buses that are equipped with those signals.121.32    Subd. 6.Minnesota Rules, part 7470.1400.The commissioner of public safety 121.33must amend Minnesota Rules, part 7470.1400, to clarify that the operating rules in parts 121.347470.1000 to 7470.1500 apply to buses that are leased and rented as well as to school 121.35buses that are owned by a school district, a nonpublic school, or a private operator under 121.36contract to a school district or nonpublic school.122.1    Subd. 7.Minnesota Rules, part 7470.1500.The commissioner of public safety 122.2must amend Minnesota Rules, part 7470.1500, to: 122.3    (1) clarify that the prohibition against loading or unloading while adjacent to a turn 122.4lane applies only when it is a right-hand turn lane and does not prohibit a bus from loading 122.5or unloading at the side of the road when there is a center turn lane; and 122.6    (2) delete item H because it is obsolete.122.7    Subd. 8.Minnesota Rules, part 7470.1700.The commissioner of public safety 122.8must amend Minnesota Rules, part 7470.1700, subpart 2, to: 122.9    (1) clarify that the bus driver and the bus aide must have access to emergency health 122.10care information for the students with disabilities transported on the bus; and 122.11    (2) add an item E that allows the health information to be maintained either in a hard 122.12copy on the vehicle or immediately accessible through a two-way communications system.122.13EFFECTIVE DATE.This section is effective the day following final enactment.122.14    Sec. 15.  REPEALER.122.15Minnesota Statutes 2006, sections 169.4502, subdivision 15; and 169.4503, 122.16subdivisions 17, 18, and 26, are repealed.122.17EFFECTIVE DATE.This section is effective January 1, 2008.122.18ARTICLE 9122.19EARLY CHILDHOOD AND ADULT PROGRAMS122.20    Section 1. Minnesota Statutes 2006, section 119A.52, is amended to read:122.21119A.52 DISTRIBUTION OF APPROPRIATION.122.22    (a) The commissioner of education must distribute money appropriated for that 122.23purpose to federally designated Head Start programs to expand services and to serve 122.24additional low-income children. Migrant and Indian reservation programs must be initially 122.25allocated money based on the programs' share of federal funds. The remaining money 122.26must be initially allocated to the remaining local agencies based equally on the agencies' 122.27share of federal funds and on the proportion of eligible children in the agencies' service 122.28area who are not currently being served. A Head Start grantee program must be funded 122.29at a per child rate equal to its contracted, federally funded base level at the start of the 122.30fiscal year. In allocating funds under this paragraph, the commissioner of education 122.31must assure that each Head Start program in existence in 1993 is allocated no less 122.32funding in any fiscal year than was allocated to that program in fiscal year 1993. Before 122.33paying money to the programs, the commissioner must notify each program of its initial 123.1allocation, how the money must be used, and the number of low-income children to be 123.2served with the allocation based upon the federally funded per child rate. Each program 123.3must present a plan under section 
         119A.535. For any grantee program that cannot utilize 123.4its full allocation at the beginning of the fiscal year, the commissioner must reduce the 123.5allocation proportionately. Money available after the initial allocations are reduced must 123.6be redistributed to eligible grantees programs.123.7    (b) The commissioner must develop procedures to make payments to programs 123.8based upon the number of children reported to be enrolled during the required time 123.9period of program operations. Enrollment is defined by federal Head Start regulations. 123.10The procedures must include a reporting schedule, corrective action plan requirements, 123.11and financial consequences to be imposed on programs that do not meet full enrollment 123.12after the period of corrective action. Programs reporting chronic underenrollment, as 123.13defined by the commissioner, will have their subsequent program year allocation reduced 123.14proportionately. Funds made available by prorating payments and allocations to programs 123.15with reported underenrollment will be made available to the extent funds exist to fully 123.16enrolled Head Start programs through a form and manner prescribed by the department.123.17    Sec. 2. Minnesota Statutes 2006, section 119A.535, is amended to read:123.18119A.535 APPLICATION REQUIREMENTS.123.19    Eligible Head Start organizations must submit a plan to the department for approval 123.20on a form and in the manner prescribed by the commissioner. The plan must include:123.21    (1) the estimated number of low-income children and families the program will be 123.22able to serve;123.23    (2) a description of the program design and service delivery area which meets the 123.24needs of and encourages access by low-income working families;123.25    (3) a program design that ensures fair and equitable access to Head Start services for 123.26all populations and parts of the service area;123.27    (4) a plan for coordinating services to maximize assistance for child care costs 123.28available to families under chapter 119B providing Head Start services in conjunction with 123.29full-day child care programs to minimize child transitions, increase program intensity and 123.30duration, and improve child and family outcomes as required in section 119A.5411; and123.31    (5) identification of regular Head Start, early Head Start, full-day services identified 123.32in section 119A.5411, and innovative services based upon demonstrated needs to be 123.33provided.123.34    Sec. 3. [119A.5411] FULL-DAY REQUIREMENTS.124.1    The following phase-in of full-day services in Head Start programs or licensed child 124.2care as defined in chapter 245A is required: 124.3    (1) by fiscal year 2009, a minimum of 25 percent of the total state-funded enrollment 124.4throughout  the state must be provided in full-day services;124.5     (2) by fiscal year 2011, a minimum of 40 percent of the total state-funded enrollment 124.6throughout the state must be provided in full-day services; and124.7    (3) by fiscal year 2013, a minimum of 50 percent of the total state-funded enrollment 124.8throughout the state must be provided in full-day services.124.9    Head Start programs may provide full-day services as part of their own program 124.10model or through agreements with licensed full-day child care programs. If licensed child 124.11care providers do not exist in a geographic area, choose not to participate, cannot meet 124.12the federal Head Start performance standards after sufficient opportunity, or a Head Start 124.13program is unable to establish the full-day services as a part of their own program model, 124.14the Head Start program may request exemption from the commissioner.124.15    Sec. 4. Minnesota Statutes 2006, section 121A.17, subdivision 5, is amended to read:124.16    Subd. 5. Developmental screening program information. The board must inform 124.17each resident family with a child eligible to participate in the developmental screening 124.18program about the availability of the program and the state's requirement that a child 124.19receive a developmental screening or provide health records indicating that the child 124.20received a comparable developmental screening from a public or private health care 124.21organization or individual health care provider not later than 30 days after the first 124.22day of attending kindergarten in a public school. A school district must inform all 124.23resident families with eligible children under age seven that their children may receive 124.24a developmental screening conducted either by the school district or by a public or 124.25private health care organization or individual health care provider and that the screening 124.26is not required if a statement signed by the child's parent or guardian is submitted to the 124.27administrator or other person having general control and supervision of the school that 124.28the child has not been screened.124.29    Sec. 5. Minnesota Statutes 2006, section 124D.13, subdivision 1, is amended to read:124.30    Subdivision 1. Establishment; purpose. A district that provides a community 124.31education program under sections 
         124D.18 and 
         124D.19 may establish an early childhood 124.32family education program. Two or more districts, each of which provides a community 124.33education program, may cooperate to jointly provide an early childhood family education 125.1program. The purpose of the early childhood family education program is to provide 125.2parenting education to support children's learning and development.125.3    Sec. 6. Minnesota Statutes 2006, section 124D.13, subdivision 2, is amended to read:125.4    Subd. 2. Program characteristics requirements. (a) Early childhood family 125.5education programs are programs for children in the period of life from birth to 125.6kindergarten, for the parents and other relatives of these children, and for expectant 125.7parents. To the extent that funds are insufficient to provide programs for all children, 125.8early childhood family education programs should emphasize programming for a child 125.9from birth to age three and encourage parents and other relatives to involve four- and 125.10five-year-old children in school readiness programs, and other public and nonpublic early 125.11learning programs. A district may not limit participation to school district residents. Early 125.12childhood family education programs may include the following must provide:125.13    (1) programs to educate parents and other relatives about the physical, mental, and 125.14emotional development of children and to enhance the skills of parents and other relatives 125.15in providing for their children's learning and development;125.16    (2) programs to enhance the skills of parents and other relatives in providing for their 125.17children's learning and development structured learning activities requiring interaction 125.18between children and their parents or relatives;125.19    (3) structured learning experiences activities for children and parents and other 125.20relatives that promote children's development and positive interaction with peers, which 125.21are held while parents or relatives attend parent education classes;125.22    (4) activities designed to detect children's physical, mental, emotional, or behavioral 125.23problems that may cause learning problems;125.24    (5) activities and materials designed to encourage self-esteem, skills, and behavior 125.25that prevent sexual and other interpersonal violence;125.26    (6) educational materials which may be borrowed for home use;125.27    (7) (4) information on related community resources;125.28    (8) programs to prevent (5) information, materials, and activities that support the 125.29safety of children, including prevention of child abuse and neglect; and125.30    (9) other programs or activities to improve the health, development, and school 125.31readiness of children; or125.32    (10) activities designed to maximize development during infancy.125.33    (6) a community outreach plan to ensure participation by families who reflect the 125.34racial, cultural, and economic diversity of the school district.126.1    The programs must include learning experiences for children, parents, and other 126.2relatives that promote children's early literacy skills. The programsprogram must not 126.3include activities for children that do not require substantial involvement of the children's 126.4parents or other relatives. The programs program must be reviewed periodically to assure 126.5the instruction and materials are not racially, culturally, or sexually biased. The programs 126.6must encourage parents to be aware of practices that may affect equitable development of 126.7children.126.8    (b) For the purposes of this section, "relative" or "relatives" means noncustodial 126.9grandparents or other persons related to a child by blood, marriage, adoption, or foster 126.10placement, excluding parents.126.11    Sec. 7. Minnesota Statutes 2006, section 124D.13, subdivision 11, is amended to read:126.12    Subd. 11. Teachers. A school board must employ necessary qualified teachers 126.13licensed in early childhood or parent education for its early childhood family education 126.14programs.126.15    Sec. 8. Minnesota Statutes 2006, section 124D.13, is amended by adding a subdivision 126.16to read:126.17    Subd. 13.Plan and program data submission requirements.(a) An early 126.18childhood family education program must submit a biennial plan addressing the 126.19requirements of subdivision 2 for approval by the commissioner. The plan must also 126.20describe how the program provides parenting education and ensures participation of 126.21families representative of the school district. A school district must submit the plan for 126.22approval by the commissioner in the form and manner prescribed by the commissioner. 126.23One-half of districts, as determined by the commissioner, must first submit a biennial plan 126.24by April 1, 2009, and the remaining districts must first submit a plan by April 1, 2010.126.25    (b) Districts receiving early childhood family education revenue under section 126.26124D.135 must submit annual program data to the department by July 15 in the form and 126.27manner prescribed by the commissioner.126.28    (c) Beginning with levies for fiscal year 2011, a school district must submit its annual 126.29program data to the department before it may certify a levy under section 124D.135. 126.30Districts selected by the commissioner to submit a biennial plan by April 1, 2009, must 126.31also have an approved plan on file with the commissioner before certifying a levy under 126.32section 124D.135 for fiscal year 2011. Beginning with levies for fiscal year 2012, all 126.33districts must submit annual program data and have an approved biennial plan on file with 126.34the commissioner before certifying a levy under section 124D.135.127.1    Sec. 9. Minnesota Statutes 2006, section 124D.135, subdivision 1, is amended to read:127.2    Subdivision 1. Revenue. The revenue for early childhood family education 127.3programs for a school district equals  $112 for fiscal year 2007 and $120 for fiscal year 127.42008 and later, times the greater of:127.5    (1) 150; or127.6    (2) the number of people under five years of age residing in the district on October 1 127.7of the previous school year.127.8EFFECTIVE DATE.This section is effective for revenue for fiscal year 2008.127.9    Sec. 10. Minnesota Statutes 2006, section 124D.135, subdivision 3, is amended to read:127.10    Subd. 3. Early childhood family education levy.For fiscal year 2001 to obtain 127.11early childhood family education revenue, a district may levy an amount equal to the tax 127.12rate of .5282 percent times the adjusted tax capacity of the district for the year preceding 127.13the year the levy is certified. Beginning with levies for fiscal year 2002, By September 127.1430 of each year, the commissioner shall establish a tax rate for early childhood family127.15education revenue that raises $21,027,000 for fiscal year 2002 and $22,135,000 in each127.16fiscal year 2003 and each subsequent year. If the amount of the early childhood family 127.17education levy would exceed the early childhood family education revenue, the early 127.18childhood family education levy must equal the early childhood family education revenue.127.19Beginning with levies for fiscal year 2011, a district may not certify an early childhood 127.20family education levy unless it has met the annual program data reporting and biennial 127.21plan requirements under section 124D.13, subdivision 13.127.22    Sec. 11. Minnesota Statutes 2006, section 124D.135, subdivision 5, is amended to read:127.23    Subd. 5. Use of revenue restricted.(a) Early childhood family education revenue 127.24may be used only for early childhood family education programs.127.25    (b) Not more than five percent of early childhood family education revenue, as 127.26defined in subdivision 7, may be used to administer early childhood family education 127.27programs.127.28    (c) An early childhood family education program may use up to ten percent of its 127.29early childhood family education revenue as defined in subdivision 1, including revenue 127.30from participant fees, for equipment that is used in the early childhood family education 127.31program. This revenue may only be used for the following purposes:127.32    (1) to purchase or lease computers and related materials; and127.33    (2) to purchase or lease equipment for instruction for participating children and 127.34their families.128.1    If a district anticipates an unusual circumstance requiring its early childhood family 128.2education program capital expenditures to exceed the ten percent limitation, prior approval 128.3to exceed the limit must be obtained in writing from the commissioner.128.4    Sec. 12. Minnesota Statutes 2006, section 124D.135, subdivision 6, is amended to read:128.5    Subd. 6. Home visiting levy. A district that is eligible to levy for early childhood 128.6family education under subdivision 3 and that enters into a collaborative agreement to 128.7provide education services and social services to families with young children may levy 128.8an amount equal to $1.60 times the number of people under five years of age residing in 128.9the district on September 1 of the last school year. Levy revenue under this subdivision 128.10must not be included as revenue under subdivision 1. The revenue must be used for home 128.11visiting programs under section 
         124D.13, subdivision 4. 128.12    Sec. 13. Minnesota Statutes 2006, section 124D.15, subdivision 3, is amended to read:128.13    Subd. 3. Program requirements. A school readiness program provider must:128.14    (1) assess each child's cognitive skills when the child enters and again before the 128.15child leaves the program to inform program planning and promote kindergarten readiness;128.16    (2) provide comprehensive program content based on early childhood research and 128.17professional practice that is focused on children's cognitive skills and development and 128.18prepares children for the transition to kindergarten, including early literacy skills;128.19    (3) arrange for early childhood screening and appropriate referral;128.20    (4) involve parents in program planning and decision making;128.21    (5) coordinate with relevant community-based services; and128.22    (6) cooperate with adult basic education programs and other adult literacy programs.128.23    Sec. 14. [124D.2211] AFTER-SCHOOL COMMUNITY LEARNING 128.24PROGRAMS.128.25    Subdivision 1.Establishment.A competitive statewide after-school community 128.26learning grant program is established to provide grants to community or nonprofit 128.27organizations, political subdivisions, for-profit or nonprofit child care centers, or 128.28school-based programs that serve youth after school or during nonschool hours. The 128.29commissioner shall develop criteria for after-school community learning programs.128.30    Subd. 2.Program outcomes.The expected outcomes of the after-school 128.31community learning programs are to increase:128.32    (1) school connectedness of participants;129.1    (2) academic achievement of participating students in one or more core academic 129.2areas;129.3    (3) the capacity of participants to become productive adults; and129.4    (4) prevent truancy from school and prevent juvenile crime.129.5    Subd. 3.Grants.An applicant shall submit an after-school community learning 129.6program proposal to the commissioner. The submitted plan must include:129.7    (1) collaboration with and leverage of existing community resources that have 129.8demonstrated effectiveness;129.9    (2) outreach to children and youth; and129.10    (3) involvement of local governments, including park and recreation boards or 129.11schools, unless no government agency is appropriate.129.12    Proposals will be reviewed and approved by the commissioner.129.13    Sec. 15. Minnesota Statutes 2006, section 124D.531, subdivision 1, is amended to read:129.14    Subdivision 1. State total adult basic education aid. (a) The state total adult basic 129.15education aid for fiscal year 2005 is $36,509,000. The state total adult basic education 129.16aid for fiscal year 2006  equals $36,587,000 plus any amount that is not paid for during 129.17the previous fiscal year, as a result of adjustments under subdivision 4, paragraph (a), or 129.18section 
         124D.52, subdivision 3. The state total adult basic education aid for fiscal year 129.192007 equals $37,673,000 plus any amount that is not paid for during the previous fiscal 129.20year, as a result of adjustments under subdivision 4, paragraph (a), or section 
         124D.52, 129.21subdivision 3
         . The state total adult basic education aid for fiscal year 2008 equals 129.22$40,650,000, plus any amount that is not paid during the previous fiscal year as a result of 129.23adjustments under subdivision 4, paragraph (a), or section 124D.52, subdivision 3. The 129.24state total adult basic education aid for later fiscal years equals:129.25    (1) the state total adult basic education aid for the preceding fiscal year plus any 129.26amount that is not paid for during the previous fiscal year, as a result of adjustments under 129.27subdivision 4, paragraph (a), or section 
         124D.52, subdivision 3; times129.28    (2) the lesser of:129.29    (i) 
         1.03; or129.30    (ii) the greater of 
         1.00 or the ratio of the state total contact hours in the first prior 129.31program year to the state total contact hours in the second prior program year.129.32    Beginning in fiscal year 2002, two percent of the state total adult basic education 129.33aid must be set aside for adult basic education supplemental service grants under section 129.34124D.522
         .130.1    (b) The state total adult basic education aid, excluding basic population aid, equals 130.2the difference between the amount computed in paragraph (a), and the state total basic 130.3population aid under subdivision 2.130.4    Sec. 16. Minnesota Statutes 2006, section 124D.531, subdivision 4, is amended to read:130.5    Subd. 4. Adult basic education program aid limit. (a) Notwithstanding 130.6subdivisions 2 and 3, the total adult basic education aid for a program per prior year 130.7contact hour must not exceed $21 $22 per prior year contact hour computed under 130.8subdivision 3, clause (2).130.9    (b) For fiscal year 2004, the aid for a program under subdivision 3, clause (2), 130.10adjusted for changes in program membership, must not exceed the aid for that program 130.11under subdivision 3, clause (2), for fiscal year 2003 by more than the greater of eight 130.12percent or $10,000.130.13    (c) For fiscal year 2005, the aid for a program under subdivision 3, clause (2), 130.14adjusted for changes in program membership, must not exceed the sum of the aid for that 130.15program under subdivision 3, clause (2), and Laws 2003, First Special Session chapter 9, 130.16article 9, section 8, paragraph (a), for the preceding fiscal year by more than the greater of 130.17eight percent or $10,000.130.18    (d) (b) For fiscal year 2006 and later fiscal year 2007, the aid for a program under 130.19subdivision 3, clause (2), adjusted for changes in program membership, must not exceed 130.20the aid for that program under subdivision 3, clause (2), for the first preceding fiscal year 130.21by more than the greater of eight percent or $10,000.130.22    (c) For fiscal year 2008 and later, the aid for a program under subdivision 3, 130.23clause (2), adjusted for changes in program membership, must not exceed the aid for 130.24that program under subdivision 3, clause (2), for the first preceding fiscal year by more 130.25than the greater of 11 percent or $14,000.130.26    (e) (d) Adult basic education aid is payable to a program for unreimbursed costs 130.27occurring in the program year as defined in section 
         124D.52, subdivision 3.130.28    (f) (e) Any adult basic education aid that is not paid to a program because of the 130.29program aid limitation under paragraph (a) must be added to the state total adult basic 130.30education aid for the next fiscal year under subdivision 1. Any adult basic education aid 130.31that is not paid to a program because of the program aid limitations under paragraph (b),130.32or (c), or (d), must be reallocated among programs by adjusting the rate per contact hour 130.33under subdivision 3, clause (2).130.34    Sec. 17. APPROPRIATION.131.1    Subdivision 1.Department of Education.The sums indicated in this section are 131.2appropriated from the general fund to the Department of Education for the fiscal years 131.3designated.131.4    Subd. 2.Early childhood family education aid.For early childhood family 131.5education aid under Minnesota Statutes, section 124D.135:

131.6$ 21,106,000.....2008131.7$ 21,888,000.....2009

131.8    The 2008 appropriation includes $1,796,000 for 2007 and $19,310,000 for 2008.131.9    The 2009 appropriation includes $2,145,000 for 2008 and $19,743,000 for 2009.131.10    Subd. 3.School readiness.For revenue for school readiness programs under 131.11Minnesota Statutes, sections 124D.15 and 124D.16:

131.12$9,995,000.....2008131.13$10,095,000.....2009

131.14    The 2008 appropriation includes $909,000 for 2007 and $9,086,000 for 2008.131.15    The 2009 appropriation includes $1,009,000 for 2008 and $9,086,000 for 2009.131.16    Subd. 4.Minnesota Learning Resource Center.For a grant to A Chance to 131.17Grow/New Visions for the Minnesota Learning Resource Center's comprehensive training 131.18program for education professionals charged with helping children acquire learning 131.19readiness skills:

131.20$75,000.....2008131.21$75,000.....2009

131.22    Any balance in the first year does not cancel but is available in the second year.131.23    The Minnesota Learning Resource Center shall issue a report by January 15, 2009, to 131.24the committees of the house of representatives and senate responsible for early childhood 131.25programs. The report shall describe the conduct of the training provided to the A Chance 131.26to Grow/New Visions program, and any findings or lessons learned that might prove 131.27useful to the training of education professionals or the improvement of learning readiness 131.28services for children from such training.131.29    This is a onetime appropriation.131.30    Subd. 5.Health and developmental screening aid.For health and developmental 131.31screening aid under Minnesota Statutes, sections 121A.17 and 121A.19:

131.32$3,159,000.....2008131.33$3,330,000.....2009

131.34    The 2008 appropriation includes $288,000 for 2007 and $2,871,000 for 2008.132.1    The 2009 appropriation includes $319,000 for 2008 and $3,011,000 for 2009.132.2    Subd. 6.Educate parents partnership.For the educate parents partnership under 132.3Minnesota Statutes, section 124D.129:

132.4$50,000.....2008132.5$50,000.....2009

132.6    Subd. 7.Kindergarten entrance assessment initiative and intervention 132.7program.For the kindergarten entrance assessment initiative and intervention program 132.8under Minnesota Statutes, section 124D.162:

132.9$584,000.....2008132.10$776,000.....2009

132.11    Subd. 8.Head Start programs.For Head Start programs under Minnesota 132.12Statutes, section 119A.52:

132.13$20,100,000.....2008132.14$20,100,000.....2009

132.15    Of these amounts, up to 10 percent of the funds allocated to local Head Start 132.16programs annually may be used for innovative services designed either to target Head 132.17Start resources to particular at-risk groups of children or to provide services in addition 132.18to those currently allowable under federal Head Start regulations. Head Start programs 132.19must submit a plan for innovative services as part of the application process described 132.20under Minnesota Statutes, section 119A.535.132.21    Any balance in the first year does not cancel but is available in the second year.132.22    Subd. 9.Community education aid.For community education aid under 132.23Minnesota Statutes, section 124D.20:

132.24$1,307,000.....2008132.25$816,000.....2009

132.26    The 2008 appropriation includes $195,000 for 2007 and $1,112,000 for 2008.132.27    The 2009 appropriation includes $123,000 for 2008 and $693,000 for 2009.132.28    Subd. 10.Adults with disabilities program aid.For adults with disabilities 132.29programs under Minnesota Statutes, section 124D.56:

132.30$881,000.....2008132.31$900,000.....2009

132.32    The 2008 appropriation includes $71,000 for 2007 and $810,000 for 2008.132.33    The 2009 appropriation includes $90,000 for 2008 and $810,000 for 2009.133.1    School districts operating existing adults with disabilities programs that are not fully 133.2funded shall receive full funding for the program beginning in fiscal year 2008 before the 133.3commissioner awards grants to other districts.133.4    Subd. 11.Hearing-impaired adults.For programs for hearing-impaired adults 133.5under Minnesota Statutes, section 124D.57:

133.6$70,000.....2008133.7$70,000.....2009

133.8    Subd. 12.School-age care revenue.For extended day aid under Minnesota 133.9Statutes, section 124D.22:

133.10$1,000.....2008133.11$1,000.....2009

133.12    The 2008 appropriation includes $0 for 2007 and $1,000 for 2008.133.13    The 2009 appropriation includes $0 for 2008 and $1,000 for 2009.133.14    Subd. 13.After-school community learning grants.For after-school community 133.15learning grants:

133.16$2,775,000.....2008133.17$2,600,000.....2009

133.18    The commissioner may hire one full-time equivalent staff person to administer the 133.19statewide after-school community learning grant program.133.20    This is a onetime appropriation.133.21    Subd. 14.Adult basic education aid.For adult basic education aid under 133.22Minnesota Statutes, section 124D.531:

133.23$ 40,347,000.....2008133.24$ 41,745,000.....2009

133.25    The 2008 appropriation includes $3,759,000 for 2007 and $36,588,000 for 2008.133.26    The 2009 appropriation includes $4,065,000 for 2008 and $37,680,000 for 2009.133.27    Subd. 15.GED test fees.For GED test fees under Minnesota Statutes, section 133.28124D.55:

133.29$300,000.....2008133.30$200,000.....2009

133.31    $100,000 in fiscal year 2008 is for GED test fees for homeless persons.133.32    Any balance in the first year does not cancel but is available in the second year.134.1    Subd. 16.Adult literacy grants for recent immigrants.For adult literacy grants 134.2for recent immigrants to Minnesota under Laws 2006, chapter 282, article 2, section 26:

134.3$1,250,000.....2008

134.4    Sec. 18. APPROPRIATIONS; DEPARTMENT OF HEALTH.134.5    Subdivision 1.Department of Health.The sums indicated in this section are 134.6appropriated from the general fund to the Department of Health for the fiscal years 134.7designated.134.8    Subd. 2.Lead hazard reduction.For lead hazard reduction under Minnesota 134.9Statutes, section 144.9512:

134.10$100,000.....2008134.11$100,000.....2009

134.12    Sec. 19.  REPEALER.134.13Minnesota Statutes 2006, sections 124D.175; and 124D.531, subdivision 5, are 134.14repealed.134.15ARTICLE 10134.16EDUCATION FORECAST ADJUSTMENTS134.17A. GENERAL EDUCATION134.18    Section 1. Laws 2005, First Special Session chapter 5, article 1, section 54, subdivision 134.192, as amended by Laws 2006, chapter 282, article 3, section 2, is amended to read:134.20    Subd. 2 General education aid  For general education  aid under Minnesota Statutes, 134.21section 
         126C.13, subdivision 4:  

134.22$ 5,819,153,000.....2006134.23134.24$5,472,238,0005,453,693,000.....2007

134.25    The 2006 appropriation includes $787,978,000 for 2005 and $5,031,175,000 for 134.262006.  134.27    The 2007 appropriation includes $513,848,000 $518,218,000 for 2006 and 134.28$4,958,390,000 $4,935,475,000 for 2007.134.29EFFECTIVE DATE.This section is effective the day following final enactment.135.1    Sec. 2. Laws 2005, First Special Session chapter 5, article 1, section 54, subdivision 4, 135.2is amended to read:135.3    Subd. 4. Enrollment options transportation. For transportation of pupils attending 135.4postsecondary institutions under Minnesota Statutes, section 
         124D.09, or for transportation 135.5of pupils attending nonresident districts under Minnesota Statutes, section 
         124D.03:

135.6$55,000.....2006135.7135.8$55,00093,000.....2007

135.9EFFECTIVE DATE.This section is effective the day following final enactment.135.10    Sec. 3. Laws 2005, First Special Session chapter 5, article 1, section 54, subdivision 5, 135.11as amended by Laws 2006, chapter 282, article 7, section 2, is amended to read:135.12    Subd. 5. Abatement revenue. For abatement aid under  Minnesota Statutes, section 135.13127A.49
         :

135.14$909,000.....2006135.15135.16$1,026,000765,000.....2007

135.17    The 2006 appropriation includes $187,000 for 2005 and   $722,000 for 2006.  135.18    The 2007 appropriation includes  $80,000 for 2006 and   $946,000 $685,000 for 2007.135.19EFFECTIVE DATE.This section is effective the day following final enactment.135.20    Sec. 4. Laws 2005, First Special Session chapter 5, article 1, section 54, subdivision 6, 135.21as amended by Laws 2006, chapter 282, article 7, section 3, is amended to read:135.22    Subd. 6.  Consolidation transition. For districts  consolidating under Minnesota 135.23Statutes, section 
         123A.485:

135.24135.25$527,000388,000.....2007

135.26    The 2007 appropriation includes $0 for 2006 and $527,000 $388,000 for 2007.  135.27EFFECTIVE DATE.This section is effective the day following final enactment.135.28    Sec. 5. Laws 2005, First Special Session chapter 5, article 1, section 54, subdivision 7, 135.29as amended by Laws 2006, chapter 282, article 7, section 4, is amended to read:135.30    Subd. 7.  Nonpublic pupil education aid. For nonpublic  pupil education aid under 135.31Minnesota Statutes, sections 
         123B.87  and 
         123B.40 to 
         123B.43:

136.1$15,458,000.....2006136.2136.3$15,991,00015,972,000.....2007

136.4    The 2006 appropriation includes  $1,864,000 for 2005 and   $13,594,000 for 2006.136.5    The 2007 appropriation includes  $1,510,000 for 2006 and   $14,481,000 $14,462,000136.6for 2007.136.7EFFECTIVE DATE.This section is effective the day following final enactment.136.8    Sec. 6. Laws 2005, First Special Session chapter 5, article 1, section 54, subdivision 8, 136.9as amended by Laws 2006, chapter 282, article 7, section 5, is amended to read:136.10    Subd. 8.  Nonpublic pupil transportation. For nonpublic  pupil transportation aid 136.11under Minnesota Statutes, section  
         123B.92, subdivision 9:

136.12$21,371,000.....2006136.13136.14$20,843,00021,133,000.....2007

136.15    The 2006 appropriation includes $3,274,000 for 2005 and   $18,097,000 for 2006.136.16    The 2007 appropriation includes  $2,010,000 for 2006 and   $18,833,000 $19,123,000136.17for 2007.136.18EFFECTIVE DATE.This section is effective the day following final enactment.136.19B. EDUCATION EXCELLENCE136.20    Sec. 7. Laws 2005, First Special Session chapter 5, article 2, section 84, subdivision 2, 136.21as amended by Laws 2006, chapter 282, article 7, section 6, is amended to read:136.22    Subd. 2.  Charter school building lease aid. For building  lease aid under Minnesota 136.23Statutes, section 
         124D.11, subdivision 4:  

136.24$25,331,000.....2006136.25136.26$27,806,00027,795,000.....2007

136.27    The 2006 appropriation includes  $3,173,000 for 2005 and   $22,158,000 for 2006.  136.28    The 2007 appropriation includes  $2,462,000 for 2006 and   $25,344,000 $25,333,000136.29for 2007.  136.30EFFECTIVE DATE.This section is effective the day following final enactment.136.31    Sec. 8. Laws 2005, First Special Session chapter 5, article 2, section 84, subdivision 3, 136.32as amended by Laws 2006, chapter 282, article 7, section 7, is amended to read:137.1    Subd. 3.  Charter school startup aid. For charter school  startup cost aid under 137.2Minnesota Statutes, section 
         124D.11:  

137.3$1,291,000.....2006137.4137.5$2,347,0002,316,000.....2007

137.6    The 2006 appropriation includes $0 for 2005 and $1,291,000 for 2006.  137.7    The 2007 appropriation includes  $143,000 for 2006 and   $2,204,000 $2,173,000137.8for 2007.  137.9EFFECTIVE DATE.This section is effective the day following final enactment.137.10    Sec. 9. Laws 2005, First Special Session chapter 5, article 2, section 84, subdivision 4, 137.11as amended by Laws 2006, chapter 282, article 7, section 8, is amended to read:137.12    Subd. 4.  Integration aid. For integration aid under  Minnesota Statutes, section 137.13124D.86, subdivision 5
         :  

137.14$59,404,000.....2006137.15137.16$58,405,00058,075,000.....2007

137.17    The 2006 appropriation includes $8,545,000 for 2005 and   $50,859,000 for 2006.  137.18    The 2007 appropriation includes  $5,650,000 for 2006 and   $52,755,000 $52,425,000137.19for 2007.  137.20EFFECTIVE DATE.This section is effective the day following final enactment.137.21    Sec. 10. Laws 2005, First Special Session chapter 5, article 2, section 84, subdivision 137.226, as amended by Laws 2006, chapter 282, article 7, section 9, is amended to read:137.23    Subd. 6.  Interdistrict desegregation or integration transportation grants. For 137.24interdistrict desegregation or integration transportation grants under Minnesota Statutes, 137.25section 
         124D.87:

137.26$6,032,000.....2006137.27137.28$10,134,0008,169,000.....2007

137.29EFFECTIVE DATE.This section is effective the day following final enactment.137.30    Sec. 11. Laws 2005, First Special Session chapter 5, article 2, section 84, subdivision 137.3110, as amended by Laws 2006, chapter 282, article 7, section 11, is amended to read:138.1    Subd. 10.  Tribal contract schools. For tribal contract  school aid under Minnesota 138.2Statutes, section 
         124D.83:  

138.3$2,338,000.....2006138.4138.5$2,357,0002,060,000.....2007

138.6    The 2006 appropriation includes $348,000 for 2005 and   $1,990,000 for 2006.  138.7    The 2007 appropriation includes  $221,000 for 2006 and   $2,136,000 $1,839,000138.8for 2007.  138.9EFFECTIVE DATE.This section is effective the day following final enactment.138.10C. SPECIAL EDUCATION138.11    Sec. 12. Laws 2005, First Special Session chapter 5, article 3, section 18, subdivision 138.122, as amended by Laws 2006, chapter 282, article 7, section 12, is amended to read:138.13    Subd. 2.  Special education; regular. For special  education aid under Minnesota Statutes, 138.14section 
         125A.75:  

138.15$ 559,485,000.....2006138.16138.17$528,106,000529,257,000.....2007

138.18    The 2006 appropriation includes $83,078,000 for 2005 and   $476,407,000 for 2006.  138.19    The 2007 appropriation includes  $52,934,000 for 2006 and   $475,172,000138.20$476,323,000 for 2007.  138.21EFFECTIVE DATE.This section is effective the day following final enactment.138.22    Sec. 13. Laws 2005, First Special Session chapter 5, article 3, section 18, subdivision 138.233, as amended by Laws 2006, chapter 282, article 7, section 13, is amended to read:138.24    Subd. 3.  Aid for children with disabilities. For aid  under Minnesota Statutes, 138.25section 
         125A.75, subdivision 3, for  children with disabilities placed in residential facilities  138.26within the district boundaries for whom no district of residence  can be determined:  

138.27$1,527,000.....2006138.28138.29$1,624,0001,410,000.....2007

138.30    If the appropriation for either year is insufficient, the  appropriation for the other 138.31year is available.  138.32EFFECTIVE DATE.This section is effective the day following final enactment.139.1    Sec. 14. Laws 2005, First Special Session chapter 5, article 3, section 18, subdivision 139.24, as amended by Laws 2006, chapter 282, article 7, section 14, is amended to read:139.3    Subd. 4.  Travel for home-based services. For aid for  teacher travel for home-based 139.4services under Minnesota Statutes,  section 
         125A.75, subdivision 1:  

139.5$198,000.....2006139.6139.7$195,000224,000.....2007

139.8    The 2006 appropriation includes $28,000 for 2005 and   $170,000 for 2006.  139.9    The 2007 appropriation includes  $18,000 for 2006 and   $177,000 $206,000 for 2007.  139.10EFFECTIVE DATE.This section is effective the day following final enactment.139.11    Sec. 15. Laws 2005, First Special Session chapter 5, article 3, section 18, subdivision 139.126, as amended by Laws 2006, chapter 282, article 7, section 16, is amended to read:139.13    Subd. 6. Transition for disabled students. For aid for  transition programs for children 139.14with disabilities under  Minnesota Statutes, section 
         124D.454:  

139.15$9,300,000.....2006139.16139.17$8,781,0008,800,000.....2007

139.18    The 2006 appropriation includes $1,380,000 for 2005 and   $7,920,000 for 2006.  139.19    The 2007 appropriation includes  $880,000 for 2006 and   $7,901,000 $7,920,000139.20for 2007.  139.21EFFECTIVE DATE.This section is effective the day following final enactment.139.22D. FACILITIES139.23    Sec. 16. Laws 2005, First Special Session chapter 5, article 4, section 25, subdivision 139.242, as amended by Laws 2006, chapter 282, article 7, section 18, is amended to read:139.25    Subd. 2.  Health and safety revenue. For health and  safety aid according to 139.26Minnesota Statutes, section 
         123B.57,  subdivision 5:  

139.27$823,000.....2006139.28139.29$352,000249,000.....2007

139.30    The 2006 appropriation includes $211,000 for 2005 and   $612,000 for 2006.  139.31    The 2007 appropriation includes  $68,000 for 2006 and   $284,000 $181,000 for 2007.  139.32EFFECTIVE DATE.This section is effective the day following final enactment.140.1    Sec. 17. Laws 2005, First Special Session chapter 5, article 4, section 25, subdivision 140.23, as amended by Laws 2006, chapter 282, article 5, section 2, is amended to read:140.3    Subd. 3.  Debt service equalization. For debt service aid  according to Minnesota 140.4Statutes, section 
         123B.53, subdivision 6:  

140.5$27,206,000.....2006140.6140.7$18,410,00018,395,000.....2007

140.8    The 2006 appropriation includes $4,654,000 for 2005 and   $22,552,000 for 2006.  140.9    The 2007 appropriation includes $2,504,000 for 2006 and   $15,906,000 $15,891,000140.10for 2007.  140.11EFFECTIVE DATE.This section is effective the day following final enactment.140.12E. NUTRITION140.13    Sec. 18. Laws 2005, First Special Session chapter 5, article 5, section 17, subdivision 140.143, as amended by Laws 2006, chapter 282, article 7, section 20, is amended to read:140.15    Subd. 3.  Traditional school breakfast; kindergarten  milk. For traditional school 140.16breakfast aid and kindergarten  milk under Minnesota Statutes, sections 
         124D.1158 and 140.17124D.118
         :  

140.18$4,856,000.....2006140.19140.20$5,044,0005,175,000.....2007

140.21EFFECTIVE DATE.This section is effective the day following final enactment.140.22F. EARLY CHILDHOOD EDUCATION140.23    Sec. 19. Laws 2005, First Special Session chapter 5, article 7, section 20, subdivision 140.242, as amended by Laws 2006, chapter 282, article 7, section 24, is amended to read:140.25    Subd. 2.  School readiness. For revenue for school  readiness programs under 140.26Minnesota Statutes, sections 
         124D.15  and 
         124D.16:  

140.27$9,528,000.....2006140.28140.29$9,020,0009,087,000.....2007

140.30    The 2006 appropriation includes  $1,415,000 for 2005 and   $8,113,000 for 2006.140.31    The 2007 appropriation includes  $901,000 for 2006 and   $8,119,000 $8,186,000140.32for 2007.140.33EFFECTIVE DATE.This section is effective the day following final enactment.141.1    Sec. 20. Laws 2005, First Special Session chapter 5, article 7, section 20, subdivision 141.23, as amended by Laws 2006, chapter 282, article 2, section 24, is amended to read:141.3    Subd. 3.  Early childhood family education aid. For early  childhood family 141.4education aid under Minnesota Statutes, section  
         124D.135:

141.5$15,105,000.....2006141.6141.7$17,792,00017,639,000.....2007

141.8    The 2006 appropriation includes $1,859,000 for 2005 and $13,246,000 for 2006.141.9    The 2007 appropriation includes $1,471,000 for 2006 and $16,321,000 $16,168,000141.10for 2007.141.11EFFECTIVE DATE.This section is effective the day following final enactment.141.12    Sec. 21. Laws 2005, First Special Session chapter 5, article 7, section 20, subdivision 141.134, as amended by Laws 2006, chapter 282, article 2, section 25, is amended to read:141.14    Subd. 4.  Health and developmental screening aid. For  health and developmental 141.15screening aid under Minnesota Statutes,  sections 
         121A.17 and 
         121A.19:

141.16$3,000,000.....2006141.17141.18$2,997,0002,880,000.....2007

141.19    The 2006 appropriation includes $417,000 for 2005 and  $2,583,000 for 2006 141.20    The 2007 appropriation includes $287,000 for 2006 and $2,710,000 $2,593,000141.21for 2007.141.22EFFECTIVE DATE.This section is effective the day following final enactment.141.23    Sec. 22. Laws 2006, chapter 282, article 2, section 28, subdivision 4, is amended to 141.24read:141.25    Subd. 4. Early childhood Part C. For the expansion of early childhood Part C 141.26services:

141.27$400,000-0-.....2007

141.28EFFECTIVE DATE.This section is effective the day following final enactment.141.29G. PREVENTION141.30    Sec. 23. Laws 2005, First Special Session chapter 5, article 8, section 8, subdivision 2, 141.31as amended by Laws 2006, chapter 282, article 7, section 25, is amended to read:142.1    Subd. 2.  Community education aid. For community  education aid under Minnesota 142.2Statutes, section 
         124D.20:  

142.3$2,043,000.....2006142.4142.5$1,949,0001,942,000.....2007

142.6    The 2006 appropriation includes  $385,000 for 2005 and   $1,658,000 for 2006.  142.7    The 2007 appropriation includes  $184,000 for 2006 and   $1,765,000 $1,758,000142.8for 2007.142.9EFFECTIVE DATE.This section is effective the day following final enactment.142.10    Sec. 24. Laws 2005, First Special Session chapter 5, article 8, section 8, subdivision 5, 142.11as amended by Laws 2006, chapter 282, article 7, section 27, is amended to read:142.12    Subd. 5.  School-age care revenue. For extended day aid  under Minnesota Statutes, 142.13section 
         124D.22:  

142.14$17,000.....2006142.15$4,0006,000.....2007

142.16    The 2006 appropriation includes $4,000 for 2005 and $13,000  for 2006.  142.17    The 2007 appropriation includes  $1,000 for 2006 and  $3,000 $5,000 for 2007.  142.18EFFECTIVE DATE.This section is effective the day following final enactment.142.19H. SELF-SUFFICIENCY AND LIFELONG LEARNING142.20    Sec. 25. Laws 2005, First Special Session chapter 5, article 9, section 4, subdivision 2, 142.21is amended to read:142.22    Subd. 2. Adult basic education aid. For adult basic education aid under Minnesota 142.23Statutes:

142.24$36,518,000.....2006142.25142.26$36,540,00037,486,000.....2007

142.27    The 2006 appropriation includes $5,707,000 for 2005 and $30,811,000 for 2006.142.28    The 2007 appropriation includes $5,737,000 $3,654,000 for 2006 and $30,803,000142.29$33,832,000 for 2007.142.30EFFECTIVE DATE.This section is effective the day following final enactment.143.1ARTICLE 11143.2TECHNICAL AND CONFORMING AMENDMENTS143.3    Section 1. Minnesota Statutes 2006, section 122A.628, subdivision 2, is amended to 143.4read:143.5    Subd. 2. Revenue. A school district that is selected to participate in the schools 143.6mentoring schools program under this section may utilize its professional compensation 143.7revenue under section 
         122A.4142 122A.414, subdivision 4, to pay regional training sites 143.8for staff development and training services.143.9    Sec. 2. Minnesota Statutes 2006, section 123A.73, subdivision 8, is amended to read:143.10    Subd. 8. Taxable property. As of the effective date of a consolidation of districts or 143.11the dissolution of a district and its attachment to one or more existing districts pursuant 143.12to chapter 123A, and subject to the conditions of section 126C.42, subdivision 1, all 143.13the taxable property which is in the newly created or enlarged district and which was 143.14previously taxable for the payment of any statutory operating debt theretofore incurred by 143.15any preexisting district of which the taxable property was a part prior to the consolidation 143.16or dissolution and attachment shall remain taxable for the payment of that debt and shall 143.17not become taxable for the payment of any statutory operating debt theretofore incurred 143.18by any preexisting district of which the taxable property was not a part prior to the 143.19consolidation or dissolution and attachment. The amount of statutory operating debt 143.20attributable to that taxable property and to the newly created or enlarged district in which 143.21it is located, and the amount of a preexisting district's reserved fund balance reserve 143.22account for purposes of statutory operating debt reduction attributable to the newly created 143.23or enlarged district, shall be apportioned according to the proportion which the adjusted 143.24net tax capacity of that part of the preexisting district bears to the total adjusted net tax 143.25capacity of the entire preexisting district at the time of the consolidation or dissolution 143.26and attachment. This apportionment shall be made by the county auditor and shall 143.27be incorporated as an annex to the order of the commissioner dividing the assets and 143.28liabilities of the component districts. As used in this section, "statutory operating debt" 143.29shall have the meaning given it in section 
         123B.81. 143.30    Sec. 3. Minnesota Statutes 2006, section 123B.79, subdivision 6, is amended to read:143.31    Subd. 6. Account transfer for statutory operating debt. On June 30 of each year, 143.32a district may make a permanent transfer from the general fund account entitled "net 143.33unreserved general fund balance since statutory operating debt" to the account entitled 144.1"reserved fund balance reserve account for purposes of statutory operating debt reduction." 144.2The amount of the transfer is limited to the lesser of (a) the net unreserved general fund 144.3balance, or (b) the sum of the remaining statutory operating debt levies authorized for all 144.4future years according to section 126C.42, subdivision 1. If the net unreserved general 144.5fund balance is less than zero, the district may not make a transfer.144.6    Sec. 4. Minnesota Statutes 2006, section 123B.81, subdivision 2, is amended to read:144.7    Subd. 2. Statutory operating debt. If the amount of the operating debt is more 144.8than 2-1/2 percent of the most recent fiscal year's expenditure amount for the funds 144.9considered under subdivision 1, the net negative undesignated fund balance is defined as 144.10"statutory operating debt" for the purposes of this section and sectionssection 123B.83144.11and 126C.42, subdivision 1. 144.12    Sec. 5. Minnesota Statutes 2006, section 123B.81, subdivision 4, is amended to read:144.13    Subd. 4. Debt elimination. If an audit or other verification procedure conducted 144.14pursuant to subdivision 3 determines that a statutory operating debt exists, a district must 144.15follow the procedures set forth in this section 
         126C.42, subdivision 1, to eliminate this 144.16statutory operating debt. 144.17    Sec. 6. Minnesota Statutes 2006, section 123B.81, subdivision 7, is amended to read:144.18    Subd. 7. Applicability. This section and the provisions of section 126C.42, 144.19subdivision 1, are is applicable only to common, independent, and special school districts 144.20and districts formed pursuant to Laws 1967, chapter 822, as amended, and Laws 1969, 144.21chapters 775 and 1060, as amended. This section and the provisions of section 126C.42, 144.22subdivision 1, do does not apply to Independent School District No. 625. 144.23    Sec. 7. Minnesota Statutes 2006, section 123B.83, subdivision 2, is amended to read:144.24    Subd. 2. Net unreserved general fund balances. A school district must limit its 144.25expenditures so that its net unreserved general fund balance does not constitute statutory 144.26operating debt as defined in section 126C.42 under section 123B.81.144.27    Sec. 8. Minnesota Statutes 2006, section 124D.34, subdivision 7, is amended to read:144.28    Subd. 7. Foundation staff. The commissioner of education shall appoint the 144.29executive director of the foundation from three candidates nominated and submitted by the 144.30foundation board of directors and, as necessary, other staff who shall perform duties and 144.31have responsibilities solely related to the foundation. The employees appointed are not 145.1state employees under chapter 43A, but are covered under section 
         3.736. The employees 145.2may participate in the state health and state insurance plans for employees in unclassified 145.3service. The employees shall be supervised by the executive director. 145.4    The commissioner shall appoint from the Office of Lifework Development a liaison 145.5to the foundation board from the division in the department responsible for career and 145.6technical education.145.7    Sec. 9. Minnesota Statutes 2006, section 124D.65, subdivision 11, is amended to read:145.8    Subd. 11. Allocations from cooperative units. For the purposes of this section 145.9and section 125A.77, pupils of limited English proficiency enrolled in a cooperative 145.10or intermediate school district unit shall be counted by the school district of residence, 145.11and the cooperative unit shall allocate its approved expenditures for limited English 145.12proficiency programs among participating school districts. Limited English proficiency 145.13aid for services provided by a cooperative or intermediate school district shall be paid to 145.14the participating school districts. 145.15    Sec. 10. Minnesota Statutes 2006, section 125A.39, is amended to read:145.16125A.39 LOCAL INTERAGENCY AGREEMENTS.145.17    School boards and the county board may enter into agreements to cooperatively 145.18serve and provide funding for children with disabilities, under age five, and their families 145.19within a specified geographic area.145.20    The local interagency agreement must address, at a minimum, the following issues:145.21    (1) responsibilities of local agencies on local interagency early intervention 145.22committees (IEIC's), consistent with section 
         125A.38; 145.23    (2) assignment of financial responsibility for early intervention services;145.24    (3) methods to resolve intraagency and interagency disputes;145.25    (4) identification of current resources and recommendations about the allocation of 145.26additional state and federal early intervention funds under the auspices of United States 145.27Code, title 20, section 1471 et seq. (Part C, Public Law 102-119 108-446) and United 145.28States Code, title 20, section 631, et seq. (Chapter I, Public Law 89-313);145.29    (5) data collection; and145.30    (6) other components of the local early intervention system consistent with Public 145.31Law 102-119.145.32    Sec. 11. Minnesota Statutes 2006, section 125A.42, is amended to read:145.33125A.42 PROCEDURAL SAFEGUARDS; PARENT AND CHILD RIGHTS.146.1    (a) This section applies to local school and county boards for children from birth 146.2through age two who are eligible for Part H C, Public Law 102-119 108-446, and their 146.3families. This section must be consistent with the Individuals with Disabilities Education 146.4Act, United States Code, title 20, sections 1471 to 1485 (Part H C, Public Law 102-119146.5108-446), regulations adopted under United States Code, title 20, sections 1471 to 1485, 146.6and sections 
         125A.259 to 
         125A.48. 146.7    (b) A parent has the right to:146.8    (1) inspect and review early intervention records;146.9    (2) prior written notice of a proposed action in the parents' native language unless it 146.10is clearly not feasible to do so;146.11    (3) give consent to any proposed action;146.12    (4) selectively accept or decline any early intervention service; and146.13    (5) resolve issues regarding the identification, evaluation, or placement of the child, 146.14or the provision of appropriate early intervention services to the child and the child's 146.15family through an impartial due process hearing pursuant to section 
         125A.46. 146.16    (c) The eligible child has the right to have a surrogate parent appointed by a school 146.17district as required by section 
         125A.07. 146.18    Sec. 12. Minnesota Statutes 2006, section 125A.44, is amended to read:146.19125A.44 COMPLAINT PROCEDURE.146.20    (a) An individual or organization may file a written signed complaint with the 146.21commissioner of the state lead agency alleging that one or more requirements of the Code 146.22of Federal Regulations, title 34, part 303, is not being met. The complaint must include:146.23    (1) a statement that the state has violated the Individuals with Disabilities Education 146.24Act, United States Code, title 20, section 1471 et seq. (Part C, Public Law 102-119146.25108-446) or Code of Federal Regulations, title 34, section 303; and146.26    (2) the facts on which the complaint is based.146.27    (b) The commissioner of the state lead agency shall receive and coordinate with 146.28other state agencies the review and resolution of a complaint within 60 calendar days 146.29according to the state interagency agreement required under section 
         125A.48. The 146.30development and disposition of corrective action orders for nonschool agencies shall be 146.31determined by the State Agency Committee (SAC). Failure to comply with corrective 146.32orders may result in fiscal actions or other measures. 146.33    Sec. 13. Minnesota Statutes 2006, section 125A.45, is amended to read:146.34125A.45 INTERAGENCY DISPUTE PROCEDURE.147.1    (a) A dispute between a school board and a county board that is responsible for 147.2implementing the provisions of section 
         125A.29 regarding early identification, child and 147.3family assessment, service coordination, and IFSP development and implementation must 147.4be resolved according to this subdivision when the dispute involves services provided 147.5to children and families eligible under the Individuals with Disabilities Education Act, 147.6United States Code, title 20, section 1471 et seq. (Part C, Public Law 102-119 108-446). 147.7    (b) A dispute occurs when the school board and county board are unable to agree as 147.8to who is responsible to coordinate, provide, pay for, or facilitate payment for services 147.9from public and private sources.147.10    (c) Written and signed disputes must be filed with the local primary agency.147.11    (d) The local primary agency must attempt to resolve the matter with the involved 147.12school board and county board and may request mediation from the commissioner of the 147.13state lead agency for this purpose.147.14    (e) When interagency disputes have not been resolved within 30 calendar days, the 147.15local primary agency must request the commissioner of the state lead agency to review 147.16the matter with the commissioners of health and human services and make a decision. 147.17The commissioner must provide a consistent process for reviewing those procedures. The 147.18commissioners' decision is binding subject to the right of an aggrieved party to appeal to 147.19the state Court of Appeals.147.20    (f) The local primary agency must ensure that eligible children and their families 147.21receive early intervention services during resolution of a dispute. While a local dispute is 147.22pending, the local primary agency must either assign financial responsibility to an agency 147.23or pay for the service from the early intervention account under section 
         125A.35. If in 147.24resolving the dispute, it is determined that the assignment of financial responsibility was 147.25inappropriate, the responsibility for payment must be reassigned to the appropriate agency 147.26and the responsible agency must make arrangements for reimbursing any expenditures 147.27incurred by the agency originally assigned financial responsibility. 147.28    Sec. 14. Minnesota Statutes 2006, section 125B.15, is amended to read:147.29125B.15 INTERNET ACCESS FOR STUDENTS.147.30    (a) Recognizing the difference between school libraries, school computer labs, and 147.31school media centers, which serve unique educational purposes, and public libraries, 147.32which are designed for public inquiry, all computers at a school site with access to the 147.33Internet available for student use must be equipped to restrict, including by use of 147.34available software filtering technology or other effective methods, all student access 148.1to material that is reasonably believed to be obscene or child pornography or material 148.2harmful to minors under federal or state law.148.3    (b) A school site is not required to purchase filtering technology if the school site 148.4would incur more than incidental expense in making the purchase.148.5    (c) A school district receiving technology revenue under section 
         125B.25 125B.26148.6must prohibit, including through use of available software filtering technology or other 148.7effective methods, adult access to material that under federal or state law is reasonably 148.8believed to be obscene or child pornography. 148.9    (d) A school district, its agents or employees, are immune from liability for failure 148.10to comply with this section if they have made a good faith effort to comply with the 148.11requirements of this section.148.12    (e) "School site" means an education site as defined in section 
         123B.04, subdivision 148.131
         , or charter school under section 
         124D.10. 148.14    Sec. 15. Minnesota Statutes 2006, section 126C.01, subdivision 9, is amended to read:148.15    Subd. 9. Training and experience index. "Training and experience index" 148.16means a measure of a district's teacher training and experience relative to the education 148.17and experience of teachers in the state. The measure must be determined pursuant to 148.18Minnesota Statutes 1996, section 
         126C.11. 148.19    Sec. 16. Minnesota Statutes 2006, section 126C.05, subdivision 1, is amended to read:148.20    Subdivision 1. Pupil unit. Pupil units for each Minnesota resident pupil under the 148.21age of 21 or who meets the requirements of section 
         120A.20, subdivision 1, paragraph 148.22(c), in average daily membership enrolled in the district of residence, in another district 148.23under sections 
         123A.05 to 
         123A.08, 
         124D.03, 
         124D.06, 
         124D.07,124D.08, or 
         124D.68; 148.24in a charter school under section 
         124D.10; or for whom the resident district pays tuition 148.25under section 
         123A.18, 
         123A.22, 
         123A.30, 
         123A.32, 
         123A.44, 
         123A.488, 
         123B.88, 148.26subdivision 4
         , 
         124D.04, 
         124D.05, 
         125A.03 to 
         125A.24, 
         125A.51, or 
         125A.65, shall be 148.27counted according to this subdivision. 148.28    (a) A prekindergarten pupil with a disability who is enrolled in a program approved 148.29by the commissioner and has an individual education plan is counted as the ratio of the 148.30number of hours of assessment and education service to 825 times 
         1.25 with a minimum 148.31average daily membership of 0.28, but not more than 
         1.25 pupil units. 148.32    (b) A prekindergarten pupil who is assessed but determined not to be disabled is 148.33counted as the ratio of the number of hours of assessment service to 825 times 
         1.25. 149.1    (c) A kindergarten pupil with a disability who is enrolled in a program approved 149.2by the commissioner is counted as the ratio of the number of hours of assessment and 149.3education services required in the fiscal year by the pupil's individual education program 149.4plan to 875, but not more than one.149.5    (d) A kindergarten pupil who is not included in paragraph (c) is counted as .557 of a 149.6pupil unit for fiscal year 2000 and thereafter.149.7    (e) A pupil who is in any of grades 1 to 3 is counted as 
         1.115 pupil units for fiscal 149.8year 2000 and thereafter. 149.9    (f) A pupil who is any of grades 4 to 6 is counted as 
         1.06 pupil units for fiscal 149.10year 1995 and thereafter. 149.11    (g) A pupil who is in any of grades 7 to 12 is counted as 
         1.3 pupil units.149.12    (h) A pupil who is in the postsecondary enrollment options program is counted 149.13as 
         1.3 pupil units.149.14    Sec. 17. Minnesota Statutes 2006, section 126C.48, subdivision 7, is amended to read:149.15    Subd. 7. Reporting. For each tax settlement, the county auditor shall report 149.16to each school district by fund, the district tax settlement revenue defined in section 149.17123B.75, subdivision 5
         , paragraph (a), and the amount levied pursuant to section 126C.42, 149.18subdivision 1, on the form specified in section 
         276.10. The county auditor shall send to 149.19the district a copy of the spread levy report specified in section 
         275.124. 149.20    Sec. 18. Minnesota Statutes 2006, section 134.355, subdivision 9, is amended to read:149.21    Subd. 9. Telecommunications aid. An application for regional library 149.22telecommunications aid must, at a minimum, contain information to document the 149.23following:149.24    (1) the connections are adequate and employ an open network architecture that 149.25will ensure interconnectivity and interoperability with school districts, postsecondary 149.26education, or other governmental agencies;149.27    (2) that the connection is established through the most cost-effective means and that 149.28the regional library has explored and coordinated connections through school districts, 149.29postsecondary education, or other governmental agencies;149.30    (3) that the regional library system has filed an e-rate application; and149.31    (4) other information, as determined by the commissioner of children, families, and 149.32learning education, to ensure that connections are coordinated, efficient, and cost-effective, 149.33take advantage of discounts, and meet applicable state standards.150.1    The library system may include costs associated with cooperative arrangements with 150.2postsecondary institutions, school districts, and other governmental agencies.150.3    Sec. 19.  REPEALER.150.4Minnesota Statutes 2006, sections 123A.22, subdivision 11; and 123B.81, 150.5subdivision 8, are repealed.