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 2008.5.27    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 24, is amended to read:6.22    Subd. 24. Equity revenue. (a) A school district qualifies for equity revenue if:6.23    (1) the school district's adjusted marginal cost pupil unit amount of basic revenue, 6.24supplemental revenue, transition revenue, and referendum revenue is less than the value of 6.25the school district at or immediately above the 95th percentile of school districts in its 6.26equity region for those revenue categories; and6.27    (2) the school district's administrative offices are not located in a city of the first 6.28class on July 1, 1999.6.29    (b) Equity revenue for a qualifying district that receives referendum revenue under 6.30section 
         126C.17, subdivision 4, equals the product of (1) the district's adjusted marginal 6.31cost pupil units for that year; times (2) the sum of (i) $13, plus (ii) $75, times the school 6.32district's equity index computed under subdivision 27.7.1    (c) Equity revenue for a qualifying district that does not receive referendum revenue 7.2under section 
         126C.17, subdivision 4, equals the product of the district's adjusted marginal 7.3cost pupil units for that year times $13.7.4    (d) A school district's equity revenue is increased by the greater of zero or an amount 7.5equal to the district's resident marginal cost pupil units times the difference between ten 7.6percent of the statewide average amount of referendum revenue per resident marginal cost 7.7pupil unit for that year and the district's referendum revenue per resident marginal cost 7.8pupil unit. A school district's revenue under this paragraph must not exceed $100,000 for 7.9that year.7.10    (e) A school district's equity revenue for a school district located in the metro equity 7.11region equals the amount computed in paragraphs (b), (c), and (d) multiplied by 
         1.25.7.12    (f) For fiscal year 2007 and later, notwithstanding paragraph (a), clause (2), a school 7.13district that has per pupil referendum revenue below the 95th percentile qualifies for 7.14additional equity revenue equal to $46 times its adjusted marginal cost pupil unit units.7.15    (g) A district that does not qualify for revenue under paragraph (f) qualifies for 7.16equity revenue equal to one-half of the per pupil allowance in paragraph (f) $46 times its 7.17adjusted marginal cost pupil units.7.18EFFECTIVE DATE.This section is effective for revenue for fiscal year 2008.7.19    Sec. 10. Minnesota Statutes 2006, section 126C.10, subdivision 34, is amended to read:7.20    Subd. 34. Basic alternative teacher compensation aid. (a) For fiscal year 2006, 7.21the basic alternative teacher compensation aid for a school district or an intermediate 7.22school district with a plan approved under section 122A.414, subdivision 2b, equals the 7.23alternative teacher compensation revenue under section 122A.415, subdivision 1. The 7.24basic alternative teacher compensation aid for a charter school with an approved plan 7.25under section 122A.414, subdivision 2b, equals $260 times the number of pupils enrolled 7.26in the school on October 1 of the previous school year, or on October 1 of the current 7.27fiscal year for a charter school in the first year of operation.7.28    (b) For fiscal yearyears 2007 and later 2008, the basic alternative teacher 7.29compensation aid for a school district with a plan approved under section 
         122A.414, 7.30subdivision 2b
         , equals 73.1 percent of the alternative teacher compensation revenue 7.31under section 
         122A.415, subdivision 1. The basic alternative teacher compensation aid 7.32for an intermediate school district or charter school with a plan approved under section 7.33122A.414, subdivisions 2a and 2b
         , if the recipient is a charter school, equals $260 times 7.34the number of pupils enrolled in the school on October 1 of the previous fiscal year, or on 7.35October 1 of the current fiscal year for a charter school in the first year of operation, times 8.1the ratio of the sum of the alternative teacher compensation aid and alternative teacher 8.2compensation levy for all participating school districts to the maximum alternative teacher 8.3compensation revenue for those districts under section 
         122A.415, subdivision 1.8.4    (c)(b) Notwithstanding paragraphs (a) and (b) and section 
         122A.415, subdivision 8.51
         , the state total basic alternative teacher compensation aid entitlement must not exceed 8.6$19,329,000 for fiscal year 2006 and $75,636,000 for fiscal year 2007 and later and 8.7$44,159,000 for fiscal year 2008. The commissioner must limit the amount of alternative 8.8teacher compensation aid approved under section 
         122A.415 so as not to exceed these 8.9limits.8.10    Sec. 11. Minnesota Statutes 2006, section 126C.10, subdivision 35, is amended to read:8.11    Subd. 35. Alternative teacher compensation levy. For fiscal yearyears 2007 8.12and later 2008, the alternative teacher compensation levy for a district receiving basic 8.13alternative teacher compensation aid equals the product of (1) the difference between the 8.14district's alternative teacher compensation revenue and the district's basic alternative 8.15teacher compensation aid times (2) the lesser of one or the ratio of the district's adjusted 8.16net tax capacity per adjusted pupil unit to $5,913.8.17    Sec. 12. Minnesota Statutes 2006, section 126C.10, subdivision 36, is amended to read:8.18    Subd. 36. Alternative teacher compensation aid. (a) For fiscal yearyears 2007 8.19and later 2008, a district's alternative teacher compensation equalization aid equals the 8.20district's alternative teacher compensation revenue minus the district's basic alternative 8.21teacher compensation aid minus the district's alternative teacher compensation levy. If a 8.22district does not levy the entire amount permitted, the alternative teacher compensation 8.23equalization aid must be reduced in proportion to the actual amount levied.8.24    (b) A district's alternative teacher compensation aid equals the sum of the 8.25district's basic alternative teacher compensation aid and the district's alternative teacher 8.26compensation equalization aid.8.27    Sec. 13. Minnesota Statutes 2006, section 126C.13, subdivision 4, is amended to read:8.28    Subd. 4. General education aid. (a) For fiscal year 2006, a district's general 8.29education aid is the sum of the following amounts:8.30    (1) general education revenue, excluding equity revenue, total operating capital, and 8.31transition revenue;8.32    (2) operating capital aid according to section 126C.10, subdivision 13b;8.33    (3) equity aid according to section 126C.10, subdivision 30;9.1    (4) transition aid according to section 126C.10, subdivision 33;9.2    (5) shared time aid according to section 126C.01, subdivision 7;9.3    (6) referendum aid according to section 126C.17; and9.4    (7) online learning aid according to section 124D.096.9.5    (b) For fiscal yearyears 2007 and later 2008, a district's general education aid is the 9.6sum of the following amounts:9.7    (1) general education revenue, excluding equity revenue, total operating capital 9.8revenue, alternative teacher compensation revenue, and transition revenue;9.9    (2) operating capital aid under section 
         126C.10, subdivision 13b;9.10    (3) equity aid under section 
         126C.10, subdivision 30;9.11    (4) alternative teacher compensation aid under section 
         126C.10, subdivision 36;9.12    (5) transition aid under section 
         126C.10, subdivision 33;9.13    (6) shared time aid under section 
         126C.01, subdivision 7;9.14    (7) referendum aid under section 
         126C.17, subdivisions 7 and 7a; and9.15    (8) online learning aid according to section 
         124D.096.9.16    (b) For fiscal year 2009 and later, a district's general education aid is the sum of 9.17the following amounts:9.18    (1) general education revenue, excluding equity revenue, total operating capital 9.19revenue, and transition revenue;9.20    (2) operating capital aid under section 126C.10, subdivision 13b;9.21    (3) equity aid under section 126C.10, subdivision 30;9.22    (4) transition aid under section 126C.10, subdivision 33;9.23    (5) shared time aid under section 126C.01, subdivision 7;9.24    (6) referendum aid under section 126C.17, subdivisions 7 and 7a; and9.25    (7) online learning aid according to section 124D.096.9.26    Sec. 14. Minnesota Statutes 2006, section 126C.21, subdivision 3, is amended to read:9.27    Subd. 3. County apportionment deduction. Each year the amount of money 9.28apportioned to a district for that year pursuant to section sections127A.34, subdivision 2, 9.29and 272.029, subdivision 6, must be deducted from the general education aid earned by 9.30that district for the same year or from aid earned from other state sources. 9.31EFFECTIVE DATE.This section is effective for revenue for fiscal year 2009.9.32    Sec. 15. Minnesota Statutes 2006, section 126C.21, subdivision 5, is amended to read:9.33    Subd. 5. Adjustment for failure to meet federal maintenance of effort.(a) The 9.34general education aid paid to a school district or charter school that failed to meet federal 10.1special education maintenance of effort for the previous fiscal year must be reduced by the 10.2amount that must be paid to the federal government due to the shortfall. 10.3    (b) The general education aid paid to school districts that were members of a 10.4cooperative that failed to meet federal special education maintenance of effort must be 10.5reduced by the amount that must be paid to the federal government due to the shortfall. 10.6The commissioner must apportion the aid reduction amount to the member school districts 10.7based on each district's individual shortfall in maintaining effort, and on each member 10.8district's proportionate share of any shortfall in expenditures made by the cooperative. 10.9Each district's proportionate share of shortfall in expenditures made by the cooperative 10.10must be calculated using the adjusted marginal pupil units of each member school district.10.11    (c) The amounts recovered under this subdivision shall be paid to the federal 10.12government to meet the state's obligations resulting from the district's or, charter school's, 10.13or cooperative's failure to meet federal special education maintenance of effort.10.14EFFECTIVE DATE.This section is effective the day following final enactment.10.15    Sec. 16. Minnesota Statutes 2006, section 126C.44, is amended to read:10.16126C.44 SAFE SCHOOLS LEVY.10.17    (a) Each district may make a levy on all taxable property located within the district 10.18for the purposes specified in this section. The maximum amount which may be levied for 10.19all costs under this section shall be equal to $27 $30 multiplied by the district's adjusted 10.20marginal cost pupil units for the school year. The proceeds of the levy must be reserved 10.21and used for directly funding the following purposes or for reimbursing the cities and 10.22counties who contract with the district for the following purposes: (1) to pay the costs 10.23incurred for the salaries, benefits, and transportation costs of peace officers and sheriffs for 10.24liaison in services in the district's schools; (2) to pay the costs for a drug abuse prevention 10.25program as defined in section 
         609.101, subdivision 3, paragraph (e), in the elementary 10.26schools; (3) to pay the costs for a gang resistance education training curriculum in the 10.27district's schools; (4) to pay the costs for security in the district's schools and on school 10.28property; or (5) to pay the costs for other crime prevention, drug abuse, student and staff 10.29safety, voluntary opt-in suicide prevention tools, and violence prevention measures taken 10.30by the school district; or (6) to pay costs for licensed school counselors, licensed school 10.31nurses, licensed school social workers, licensed school psychologists, and licensed alcohol 10.32and chemical dependency counselors to help provide early responses to problems. For 10.33expenditures under clause (1), the district must initially attempt to contract for services to 10.34be provided by peace officers or sheriffs with the police department of each city or the 11.1sheriff's department of the county within the district containing the school receiving the 11.2services. If a local police department or a county sheriff's department does not wish 11.3to provide the necessary services, the district may contract for these services with any 11.4other police or sheriff's department located entirely or partially within the school district's 11.5boundaries. 11.6    (b) A school district that is a member of an intermediate school district may 11.7include in its authority under this section the costs associated with safe schools activities 11.8authorized under paragraph (a) for intermediate school district programs. This authority 11.9must not exceed $10 times the adjusted marginal cost pupil units of the member districts. 11.10This authority is in addition to any other authority authorized under this section. Revenue 11.11raised under this paragraph must be transferred to the intermediate school district.11.12    (c) If a school district spends safe schools levy proceeds under paragraph (a), clause 11.13(6), the district must annually certify that its total spending on services provided by the 11.14employees listed in paragraph (a), clause (6), is not less than the sum of its expenditures 11.15for these purposes in the previous year plus the amount spent under this section.11.16EFFECTIVE DATE.This section is effective for taxes payable in 2008.11.17    Sec. 17. Minnesota Statutes 2006, section 127A.441, is amended to read:11.18127A.441 AID REDUCTION; LEVY REVENUE RECOGNITION CHANGE.11.19    Each year, the state aids payable to any school district for that fiscal year that are 11.20recognized as revenue in the school district's general and community service funds shall 11.21be adjusted by an amount equal to (1) the amount the district recognized as revenue for the 11.22prior fiscal year pursuant to section 
         123B.75, subdivision 5, paragraph (b) or (c), minus (2) 11.23the amount the district recognized as revenue for the current fiscal year pursuant to section 11.24123B.75, subdivision 5
         , paragraph (c) (b). For purposes of making the aid adjustments 11.25under this section, the amount the district recognizes as revenue for either the prior fiscal 11.26year or the current fiscal year pursuant to section 
         123B.75, subdivision 5, paragraph (b) 11.27or (c), shall not include any amount levied pursuant to section 
         124D.86, subdivision 4, 11.28for school districts receiving revenue under sections 
         124D.86, subdivision 3, clauses (1), 11.29(2), and (3); 
         126C.41, subdivisions 1, 2, and 3, paragraphs (b), (c), and (d); 
         126C.43, 11.30subdivision 2
         ; 
         126C.457; and 
         126C.48, subdivision 6. Payment from the permanent 11.31school fund shall not be adjusted pursuant to this section. The school district shall be 11.32notified of the amount of the adjustment made to each payment pursuant to this section. 11.33    Sec. 18. Minnesota Statutes 2006, section 127A.47, subdivision 7, is amended to read:12.1    Subd. 7. Alternative attendance programs. The general education aid and special 12.2education aid for districts must be adjusted for each pupil attending a nonresident district 12.3under sections 
         123A.05 to 
         123A.08, 
         124D.03, 
         124D.06, 
         124D.08, and 
         124D.68. The 12.4adjustments must be made according to this subdivision.12.5    (a) General education aid paid to a resident district must be reduced by an amount 12.6equal to the referendum equalization aid attributable to the pupil in the resident district.12.7    (b) General education aid paid to a district serving a pupil in programs listed in this 12.8subdivision must be increased by an amount equal to the greater of (1) the referendum 12.9equalization aid attributable to the pupil in the nonresident district; or (2) the product of 12.10the district's open enrollment concentration index, the maximum amount of referendum 12.11revenue in the first tier, and the district's net open enrollment pupil units for that year. A 12.12district's open enrollment concentration index equals the greater of: (i) zero, or (ii) the 12.13lesser of 1.0, or the difference between the district's ratio of open enrollment pupil units 12.14served to its resident pupil units for that year and 0.2. This clause does not apply to a 12.15school district where more than 50 percent of the open enrollment students are enrolled 12.16solely in online learning courses.12.17    (c) If the amount of the reduction to be made from the general education aid of the 12.18resident district is greater than the amount of general education aid otherwise due the 12.19district, the excess reduction must be made from other state aids due the district.12.20    (d) For fiscal year 2006, the district of residence must pay tuition to a district or an 12.21area learning center, operated according to paragraph (f), providing special instruction and 12.22services to a pupil with a disability, as defined in section 
         125A.02, or a pupil, as defined in 12.23section 
         125A.51, who is enrolled in a program listed in this subdivision. The tuition must 12.24be equal to (1) the actual cost of providing special instruction and services to the pupil, 12.25including a proportionate amount for special transportation and unreimbursed building 12.26lease and debt service costs for facilities used primarily for special education, minus (2) 12.27if the pupil receives special instruction and services outside the regular classroom for 12.28more than 60 percent of the school day, the amount of general education revenue and 12.29referendum aid attributable to that pupil for the portion of time the pupil receives special 12.30instruction and services outside of the regular classroom, excluding portions attributable to 12.31district and school administration, district support services, operations and maintenance, 12.32capital expenditures, and pupil transportation, minus (3) special education aid attributable 12.33to that pupil, that is received by the district providing special instruction and services. For 12.34purposes of this paragraph, general education revenue and referendum aid attributable to a 12.35pupil must be calculated using the serving district's average general education revenue 12.36and referendum aid per adjusted pupil unit.13.1    (e) For fiscal year 2007 and later, special education aid paid to a resident district 13.2must be reduced by an amount equal to (1) the actual cost of providing special instruction 13.3and services, including special transportation and unreimbursed building lease and debt 13.4service costs for facilities used primarily for special education, for a pupil with a disability, 13.5as defined in section 
         125A.02, or a pupil, as defined in section 
         125A.51, who is enrolled 13.6in a program listed in this subdivision, minus (2) if the pupil receives special instruction 13.7and services outside the regular classroom for more than 60 percent of the school day, 13.8the amount of general education revenue and referendum aid attributable to that pupil 13.9for the portion of time the pupil receives special instruction and services outside of the 13.10regular classroom, excluding portions attributable to district and school administration, 13.11district support services, operations and maintenance, capital expenditures, and pupil 13.12transportation, minus (3) special education aid attributable to that pupil, that is received 13.13by the district providing special instruction and services. For purposes of this paragraph, 13.14general education revenue and referendum aid attributable to a pupil must be calculated 13.15using the serving district's average general education revenue and referendum aid per 13.16adjusted pupil unit. Special education aid paid to the district or cooperative providing 13.17special instruction and services for the pupil, or to the fiscal agent district for a cooperative, 13.18must be increased by the amount of the reduction in the aid paid to the resident district. If 13.19the resident district's special education aid is insufficient to make the full adjustment, the 13.20remaining adjustment shall be made to other state aids due to the district.13.21    (f) An area learning center operated by a service cooperative, intermediate district, 13.22education district, or a joint powers cooperative may elect through the action of the 13.23constituent boards to charge the resident district tuition for pupils rather than to have the 13.24general education revenue paid to a fiscal agent school district. Except as provided in 13.25paragraph (d) or (e), the district of residence must pay tuition equal to at least 90 percent 13.26of the district average general education revenue per pupil unit minus an amount equal to 13.27the product of the formula allowance according to section 
         126C.10, subdivision 2, times 13.28.0485, calculated without basic skills revenue and transportation sparsity revenue, times 13.29the number of pupil units for pupils attending the area learning center, plus the amount of 13.30compensatory revenue generated by pupils attending the area learning center.13.31EFFECTIVE DATE.This section is effective for revenue for fiscal year 2008.13.32    Sec. 19. Minnesota Statutes 2006, section 127A.49, subdivision 2, is amended to read:13.33    Subd. 2. Abatements. Whenever by virtue of chapter 278, sections 
         270C.86, 13.34375.192
         , or otherwise, the net tax capacity or referendum market value of any district for 13.35any taxable year is changed after the taxes for that year have been spread by the county 14.1auditor and the local tax rate as determined by the county auditor based upon the original 14.2net tax capacity is applied upon the changed net tax capacities, the county auditor shall, 14.3prior to February 1 of each year, certify to the commissioner of education the amount of 14.4any resulting net revenue loss that accrued to the district during the preceding year. Each 14.5year, the commissioner shall pay an abatement adjustment to the district in an amount 14.6calculated according to the provisions of this subdivision. This amount shall be deducted 14.7from the amount of the levy authorized by section 
         126C.46. The amount of the abatement 14.8adjustment must be the product of:14.9    (1) the net revenue loss as certified by the county auditor, times14.10    (2) the ratio of:14.11    (i) the sum of the amounts of the district's certified levy in the third preceding year 14.12according to the following:14.13    (A) section 
         123B.57, if the district received health and safety aid according to that 14.14section for the second preceding year;14.15    (B) section 
         124D.20, if the district received aid for community education programs 14.16according to that section for the second preceding year;14.17    (C) section 
         124D.135, subdivision 3, if the district received early childhood family 14.18education aid according to section 
         124D.135 for the second preceding year; and14.19    (D) section 
         126C.17, subdivision 6, if the district received referendum equalization 14.20aid according to that section for the second preceding year; 14.21    (E) section 126C.13, if the district received general education aid according to 14.22section 126C.13, subdivision 4, paragraph (b), clause (1), of that section in the second 14.23preceding year;14.24    (F) section 126C.10, subdivision 13a, if the district received operating capital aid 14.25according to section 126C.10, subdivision 13b, in the second preceding year;14.26    (G) section 126C.10, subdivision 29, if the district received equity aid according to 14.27section 126C.10, subdivision 30, in the second preceding year;14.28    (H) section 126C.10, subdivision 32, if the district received transition aid according 14.29to section 126C.10, subdivision 33, in the second preceding year;14.30    (I) section 123B.53, subdivision 5, if the district received debt service equalization 14.31aid according to section 123B.53, subdivision 6, in the second preceding year;14.32    (J) section 124D.22, subdivision 3, if the district received school-age care aid 14.33according to section 124D.22, subdivision 4, in the second preceding year;14.34    (K) section 123B.591, subdivision 3, if the district received deferred maintenance 14.35aid according to section 123B.591, subdivision 4, in the second preceding year; and15.1    (L) section 126C.10, subdivision 35, if the district received alternative teacher 15.2compensation equalization aid according to section 126C.10, subdivision 36, paragraph 15.3(a), in the second preceding year, or section 122A.415, subdivision 5, if the district 15.4received alternative compensation equalization aid according to section 122A.415, 15.5subdivision 6, in the second preceding year; to15.6    (ii) the total amount of the district's certified levy in the third preceding December, 15.7plus or minus auditor's adjustments.15.8    Sec. 20. Minnesota Statutes 2006, section 127A.49, subdivision 3, is amended to read:15.9    Subd. 3. Excess tax increment. (a) If a return of excess tax increment is made to a 15.10district pursuant to sections 
         469.176, subdivision 2, and 
         469.177, subdivision 9, or upon 15.11decertification of a tax increment district, the school district's aid and levy limitations 15.12must be adjusted for the fiscal year in which the excess tax increment is paid under the 15.13provisions of this subdivision.15.14    (b) An amount must be subtracted from the district's aid for the current fiscal year 15.15equal to the product of:15.16    (1) the amount of the payment of excess tax increment to the district, times15.17    (2) the ratio of:15.18    (i) the sum of the amounts of the district's certified levy for the fiscal year in which 15.19the excess tax increment is paid according to the following:15.20    (A) section 
         123B.57, if the district received health and safety aid according to that 15.21section for the second preceding year;15.22    (B) section 
         124D.20, if the district received aid for community education programs 15.23according to that section for the second preceding year;15.24    (C) section 
         124D.135, subdivision 3, if the district received early childhood family 15.25education aid according to section 
         124D.135 for the second preceding year; and15.26    (D) section 
         126C.17, subdivision 6, if the district received referendum equalization 15.27aid according to that section for the second preceding year; 15.28    (E) section 126C.13, if the district received general education aid according to 15.29section 126C.13, subdivision 4, paragraph (b), clause (1), of that section in the second 15.30preceding year;15.31    (F) section 126C.10, subdivision 13a, if the district received operating capital aid 15.32according to section 126C.10, subdivision 13b, in the second preceding year;15.33    (G) section 126C.10, subdivision 29, if the district received equity aid according to 15.34section 126C.10, subdivision 30, in the second preceding year;16.1    (H) section 126C.10, subdivision 32, if the district received transition aid according 16.2to section 126C.10, subdivision 33, in the second preceding year;16.3    (I) section 123B.53, subdivision 5, if the district received debt service equalization 16.4aid according to section 123B.53, subdivision 6, in the second preceding year;16.5    (J) section 124D.22, subdivision 3, if the district received school-age care aid 16.6according to section 124D.22, subdivision 4, in the second preceding year;16.7    (K) section 123B.591, subdivision 3, if the district received deferred maintenance 16.8aid according to section 123B.591, subdivision 4, in the second preceding year; and16.9    (L) section 126C.10, subdivision 35, if the district received alternative teacher 16.10compensation equalization aid according to section 126C.10, subdivision 36, paragraph 16.11(a), in the second preceding year, or section 122A.415, subdivision 5, if the district 16.12received alternative compensation equalization aid according to section 122A.415, 16.13subdivision 6, in the second preceding year; to16.14    (ii) the total amount of the district's certified levy for the fiscal year, plus or minus 16.15auditor's adjustments.16.16    (c) An amount must be subtracted from the school district's levy limitation for the 16.17next levy certified equal to the difference between:16.18    (1) the amount of the distribution of excess increment; and16.19    (2) the amount subtracted from aid pursuant to clause (a).16.20    If the aid and levy reductions required by this subdivision cannot be made to the aid 16.21for the fiscal year specified or to the levy specified, the reductions must be made from 16.22aid for subsequent fiscal years, and from subsequent levies. The school district must use 16.23the payment of excess tax increment to replace the aid and levy revenue reduced under 16.24this subdivision.16.25    (d) This subdivision applies only to the total amount of excess increments received 16.26by a district for a calendar year that exceeds $25,000.16.27    Sec. 21. Minnesota Statutes 2006, section 205A.05, subdivision 1, is amended to read:16.28    Subdivision 1. Questions. Special elections must be held for a school district on a 16.29question on which the voters are authorized by law to pass judgment. The school board 16.30may on its own motion call a special election to vote on any matter requiring approval of 16.31the voters of a district. Upon petition of 50 or more voters of the school district or five 16.32percent of the number of voters voting at the preceding regular school district general16.33election, whichever is greater, the school board shall by resolution call a special election 16.34to vote on any matter requiring approval of the voters of a district. A question is carried 16.35only with the majority in its favor required by law. The election officials for a special 17.1election are the same as for the most recent school district general election unless changed 17.2according to law. Otherwise, special elections must be conducted and the returns made 17.3in the manner provided for the school district general election. A special election may 17.4not be held during the 30 days before and the 30 days after the state primary, during the 17.530 days before and the 40 days after the state general election. In addition, a special 17.6election may not be held during the 20 days before and the 20 days after any regularly 17.7scheduled election of a municipality wholly or partially within the school district. 17.8Notwithstanding any other law to the contrary, the time period in which a special election 17.9must be conducted under any other law may be extended by the school board to conform 17.10with the requirements of this subdivision.17.11EFFECTIVE DATE.This section is effective the day following final enactment 17.12and applies to petitions for special election submitted 30 days after that date and later.17.13    Sec. 22. Minnesota Statutes 2006, section 272.029, is amended by adding a subdivision 17.14to read:17.15    Subd. 6a.Report to commissioner of education.The county auditor, on the first 17.16Wednesday after such settlement, shall report to the commissioner the amount distributed 17.17to each school district under subdivision 6.17.18EFFECTIVE DATE.This section is effective July 1, 2008, for settlements made 17.19during fiscal year 2009.17.20    Sec. 23. Laws 2005, First Special Session chapter 5, article 1, section 50, subdivision 17.212, is amended to read:17.22    Subd. 2. Application process. Independent School Districts Nos. 11, 17.23Anoka-Hennepin; 279, Osseo; 281, Robbinsdale; 286, Brooklyn Center; 535, Rochester; 17.24and 833, South Washington may submit an application to the commissioner of education 17.25by August 15, 2005, for a plan to allocate compensatory revenue to school sites based 17.26on student performance. The application must include a written resolution approved by 17.27the school board that: (1) identifies the test results that will be used to assess student 17.28performance; (2) describes the method for distribution of compensatory revenue to the 17.29school sites; and (3) summarizes the evaluation procedure the district will use to determine 17.30if the redistribution of compensatory revenue improves overall student performance. The 17.31application must be submitted in the form and manner specified by the commissioner. The 17.32commissioner must notify the selected school districts by September 1, 2005 within 90 17.33days of receipt of their application.18.1EFFECTIVE DATE.This section is effective the day following final enactment.18.2    Sec. 24. Laws 2006, chapter 282, article 3, section 4, subdivision 2, is amended to read:18.3    Subd. 2. Onetime energy assistance aid. For onetime energy assistance aid under 18.4section 3:

18.518.6$3,495,000.....2007 2006

18.7EFFECTIVE DATE.This section is effective the day following final enactment 18.8and applies retroactively to fiscal year 2006.18.9    Sec. 25. SCHOOL FINANCE REFORM; TASK FORCE ESTABLISHED.18.10    Subdivision 1.Task force established.A School Finance Reform Task Force 18.11is established.18.12    Subd. 2.Task force goals.The goals of the School Finance Reform Task Force 18.13include:18.14    (1) creating a standard and index to ensure that the formula remains adequate over 18.15time;18.16    (2) simplifying the remaining school formulas;18.17    (3) analyzing categorical funding formulas, including but not limited to pupil 18.18transportation, compensatory revenue, and limited English proficiency revenue;18.19    (4) establishing a schedule for implementation of the other new formulas; and18.20    (5) examining the role of the regional delivery structure including the functions 18.21performed by intermediate school districts, service cooperatives, education districts, and 18.22other cooperative organizations.18.23    Subd. 3.Task force members.The task force consists of nine members. 18.24Membership includes the commissioner of education, four members appointed according 18.25to the rules of the senate by the senate Committee on Rules and Administration 18.26Subcommittee on Committees, and four members appointed by the speaker of the house.18.27    Subd. 4.Task force recommendations.The task force must submit a report to the 18.28education committees of the legislature by January 15, 2008, describing the formula 18.29recommendations according to the goals it has established.18.30EFFECTIVE DATE.This section is effective the day following final enactment.18.31    Sec. 26. LIMITATION ON NEW ALTERNATIVE COMPENSATION SCHOOL 18.32DISTRICTS, FISCAL YEARS 2008-2011.19.1    Notwithstanding Minnesota Statutes, sections 122A.413; 122A.414; 122A.415; 19.2122A.416; and 126C.10, subdivisions 34, 35, and 36, the Department of Education must 19.3limit the participation in the alternative teacher pay program to those district sites and 19.4charter schools that received alternative compensation revenue in fiscal year 2007 or those 19.5district sites and charter schools that have an approved plan, under Minnesota Statutes, 19.6section 122A.414, by March 10, 2007, for fiscal year 2008 alternative compensation 19.7participation. This limitation applies to fiscal year 2008 through fiscal year 2011. No 19.8additional district sites or charter schools may be approved until after June 30, 2012.19.9    Sec. 27. FISCAL YEARS 2008 AND 2009 DECLINING PUPIL UNIT AID, 19.10RED LAKE.19.11    For fiscal years 2008 and 2009 only, Independent School District No. 38, Red Lake, 19.12is eligible for declining pupil unit aid equal to the greater of zero or the product of $4,974 19.13times the difference between the district's adjusted marginal cost pupil units for fiscal year 19.142005 and the district's adjusted marginal cost pupil units for that fiscal year times .75. 19.15Notwithstanding Minnesota Statutes, section 126C.13, the declining pupil unit aid must be 19.16included in calculating the district's general education aid.19.17    Sec. 28. APPROPRIATIONS.19.18    Subdivision 1.Department of Education.The sums indicated in this section are 19.19appropriated from the general fund to the Department of Education for the fiscal years 19.20designated.19.21    Subd. 2.General education aid.For general education aid under Minnesota 19.22Statutes, section 126C.13, subdivision 4:

19.23$ 5,581,605,000.....200819.24$ 5,506,993,000.....2009

19.25    The 2008 appropriation includes $531,733,000 for 2007 and $5,049,872,000 for 19.262008.19.27    The 2009 appropriation includes $546,980,000 for 2008 and $4,960,013,000 for 19.282009.19.29    Subd. 3.Referendum tax base replacement aid.For referendum tax base 19.30replacement aid under Minnesota Statutes, section 126C.17, subdivision 7a:

19.31$870,000.....2008

19.32    The 2008 appropriation includes $870,000 for 2007 and $0 for 2008.20.1    Subd. 4.Enrollment options transportation.For transportation of pupils attending 20.2postsecondary institutions under Minnesota Statutes, section 124D.09, or for transportation 20.3of pupils attending nonresident districts under Minnesota Statutes, section 124D.03:

20.4$95,000.....200820.5$97,000.....2009

20.6    Subd. 5.Abatement revenue.For abatement aid under Minnesota Statutes, section 20.7127A.49:

20.8$1,343,000.....200820.9$1,347,000.....2009

20.10    The 2008 appropriation includes $76,000 for 2007 and $1,267,000 for 2008.20.11    The 2009 appropriation includes $140,000 for 2008 and $1,207,000 for 2009.20.12    Subd. 6.Consolidation transition.For districts consolidating under Minnesota 20.13Statutes, section 123A.485:

20.14$565,000.....200820.15$212,000.....2009

20.16    The 2008 appropriation includes $43,000 for 2007 and $522,000 for 2008.20.17    The 2009 appropriation includes $57,000 for 2008 and $155,000 for 2009.20.18    Subd. 7.Nonpublic pupil education aid.For nonpublic pupil education aid under 20.19Minnesota Statutes, sections 123B.40 to 123B.43, and 123B.87:

20.20$ 16,292,000.....200820.21$ 16,555,000.....2009

20.22    The 2008 appropriation includes $1,606,000 for 2007 and $14,686,000 for 2008.20.23    The 2009 appropriation includes $1,631,000 for 2008 and $14,924,000 for 2009.20.24    Subd. 8.Nonpublic pupil transportation.For nonpublic pupil transportation aid 20.25under Minnesota Statutes, section 123B.92, subdivision 9:

20.26$ 21,557,000.....200820.27$ 21,163,000.....2009

20.28    The 2008 appropriation includes $2,124,000 for 2007 and $19,433,000 for 2008.20.29    The 2009 appropriation includes $2,159,000 for 2008 and $19,004,000 for 2009.20.30    Subd. 9.One-room schoolhouse.For a grant to Independent School District No. 20.31690, Warroad, to operate the Angle Inlet School:

20.32$65,000.....200820.33$65,000.....2009

21.1    Subd. 10.Compensatory revenue pilot project.For grants for participation in the 21.2compensatory revenue pilot program under Laws 2005, First Special Session chapter 5, 21.3article 1, section 50:

21.4$2,175,000.....200821.5$2,175,000.....2009

21.6    Of this amount, $1,500,000 in each year is for a grant to Independent School District 21.7No. 11, Anoka-Hennepin; $210,000 in each year is for a grant to Independent School 21.8District No. 279, Osseo; $160,000 in each year is for a grant to Independent School 21.9District No. 281, Robbinsdale; $75,000 in each year is for a grant to Independent School 21.10District No. 286, Brooklyn Center; $165,000 in each year is for a grant to Independent 21.11School District No. 535, Rochester; and $65,000 in each year is for a grant to Independent 21.12School District No. 833, South Washington.21.13    If a grant to a specific school district is not awarded, the commissioner may increase 21.14the aid amounts to any of the remaining participating school districts.21.15    This appropriation is part of the base budget for subsequent fiscal years.21.16    Subd. 11.Declining pupil unit aid; Browns Valley.For declining pupil unit aid 21.17to Independent School District No. 801, Browns Valley:

21.18$ 100,000.....200821.19$ 100,000.....2009

21.20    This is a onetime appropriation.21.21    Subd. 12.Education finance study.For a contract to hire an independent contractor 21.22to assist the education finance task force:

21.23$75,000.....2008

21.24    This is a onetime appropriation.21.25    Subd. 13.Declining pupil aid, Red Lake.For a grant to Independent School 21.26District No. 38, Red Lake, for declining pupil aid:

21.27$455,000.....200821.28$50,000.....2009

21.29    Subd. 14.Declining pupil aid McGregor.For declining pupil aid for Independent 21.30School District No. 4, McGregor:

21.31$100,000.....2008

21.32    Any balance in the first year does not cancel but is available in the second year.22.1    Sec. 29. REVISOR'S INSTRUCTION.22.2    In Minnesota Statutes, the revisor of statutes shall correct any incorrect 22.3cross-references resulting from the repeal of Minnesota Statutes, section 124D.06.22.4    Sec. 30.  REPEALER.22.5(a) Minnesota Statutes 2006, section 124D.06, is repealed.22.6(b) Minnesota Statutes 2006, section 126C.10, subdivisions 34, 35, and 36, are 22.7repealed for revenue for fiscal year 2009 and later.22.8(c) Minnesota Statutes 2006, section 124D.081, subdivisions 1, 2, 3, 4, 5, 6, and 22.99, are repealed effective for revenue for fiscal year 2010.22.10ARTICLE 222.11EDUCATION EXCELLENCE22.12    Section 1. Minnesota Statutes 2006, section 119A.50, is amended by adding a 22.13subdivision to read:22.14    Subd. 3.Early childhood literacy programs.(a) A research-based early childhood 22.15literacy program premised on actively involved parents, ongoing professional staff 22.16development, and high quality early literacy program standards is established to increase 22.17the literacy skills of children participating in Head Start to prepare them to be successful 22.18readers and to increase families' participation in providing early literacy experiences to 22.19their children. Program providers must:22.20    (1) work to prepare children to be successful learners;22.21    (2) work to close the achievement gap for at-risk children;22.22    (3) use an integrated approach to early literacy that daily offers a literacy-rich 22.23classroom learning environment composed of books, writing materials, writing centers, 22.24labels, rhyming, and other related literacy materials and opportunities;22.25    (4) support children's home language while helping the children master English and 22.26use multiple literacy strategies to provide a cultural bridge between home and school;22.27    (5) use literacy mentors, ongoing literacy groups, and other teachers and staff to 22.28provide appropriate, extensive professional development opportunities in early literacy 22.29and classroom strategies for preschool teachers and other preschool staff;22.30    (6) use ongoing data-based assessments that enable preschool teachers to understand, 22.31plan, and implement literacy strategies, activities, and curriculum that meet children's 22.32literacy needs and continuously improve children's literacy; and22.33    (7) foster participation by parents, community stakeholders, literacy advisors, and 22.34evaluation specialists. 23.1Program providers are encouraged to collaborate with qualified, community-based 23.2early childhood providers in implementing this program and to seek nonstate funds to 23.3supplement the program.23.4    (b) Program providers under paragraph (a) interested in extending literacy programs 23.5to children in kindergarten through grade 3 may elect to form a partnership with an 23.6eligible organization under section 124D.38, subdivision 2, or 124D.42, subdivision 6, 23.7clause (3), schools enrolling children in kindergarten through grade 3, and other interested 23.8and qualified community-based entities to provide ongoing literacy programs that offer 23.9seamless literacy instruction focused on closing the literacy achievement gap. To close the 23.10literacy achievement gap by the end of third grade, partnership members must agree to use 23.11best efforts and practices and to work collaboratively to implement a seamless literacy 23.12model from age three to grade 3, consistent with paragraph (a). Literacy programs under 23.13this paragraph must collect and use literacy data to:23.14    (1) evaluate children's literacy skills; and23.15    (2) formulate specific intervention strategies to provide reading instruction to 23.16children premised on the outcomes of formative and summative assessments and 23.17research-based indicators of literacy development.23.18    The literacy programs under this paragraph also must train teachers and other 23.19providers working with children to use the assessment outcomes under clause (2) to 23.20develop and use effective, long-term literacy coaching models that are specific to the 23.21program providers.23.22    (c) The commissioner must collect and evaluate literacy data on children from age 23.23three to grade 3 who participate in literacy programs under this section to determine the 23.24efficacy of early literacy programs on children's success in developing the literacy skills 23.25that they need for long-term academic success and the programs' success in closing the 23.26literacy achievement gap. Annually by February 1, the commissioner must report to 23.27the education policy and finance committees of the legislature on the ongoing impact 23.28of these programs.23.29EFFECTIVE DATE.This section is effective the day following final enactment.23.30    Sec. 2. Minnesota Statutes 2006, section 120A.22, subdivision 7, is amended to read:23.31    Subd. 7. Education records. (a) A district, a charter school, or a nonpublic school 23.32that receives services or aid under sections 123B.40 to 123B.48 from which a student is 23.33transferring must transmit the student's educational records, within ten business days of a 23.34request, to the district, the charter school, or the nonpublic school in which the student is 23.35enrolling. Districts, charter schools, and nonpublic schools that receive services or aid 24.1under sections 123B.40 to 123B.48 must make reasonable efforts to determine the district, 24.2the charter school, or the nonpublic school in which a transferring student is next enrolling 24.3in order to comply with this subdivision.24.4    (b) A closed charter school must transfer the student's educational records, within 24.5ten business days of the school's closure, to the student's school district of residence 24.6where the records must be retained unless the records are otherwise transferred under 24.7this subdivision.24.8    (c) A school district, a charter school, or a nonpublic school that receives services 24.9or aid under sections 123B.40 to 123B.48 that transmits a student's educational records 24.10to another school district or other educational entity, charter school, or nonpublic school24.11to which the student is transferring must include in the transmitted records information 24.12about any formal suspension, expulsion, and exclusion disciplinary action taken as a 24.13result of any incident in which the student possessed or used a dangerous weapon under 24.14sections 121A.40 to 121A.56. The district, the charter school, or the nonpublic school 24.15that receives services or aid under sections 123B.40 to 123B.48 must provide notice to 24.16a student and the student's parent or guardian that formal disciplinary records will be 24.17transferred as part of the student's educational record, in accordance with data practices 24.18under chapter 13 and the Family Educational Rights and Privacy Act of 1974, United 24.19States Code, title 20, section 1232(g).24.20    (c) (d) Notwithstanding section 
         138.17, a principal or chief administrative officer 24.21must remove from a student's educational record and destroy a probable cause notice 24.22received under section 
         260B.171, subdivision 5, or paragraph (d), if one year has elapsed 24.23since the date of the notice and the principal or chief administrative officer has not 24.24received a disposition or court order related to the offense described in the notice. This 24.25paragraph does not apply if the student no longer attends the school when this one-year 24.26period expires. 24.27    (d) (e) A principal or chief administrative officer who receives a probable cause 24.28notice under section 
         260B.171, subdivision 5, or a disposition or court order, must include 24.29a copy of that data in the student's educational records if they are transmitted to another 24.30school, unless the data are required to be destroyed under paragraph (c) or section 
         121A.75. 24.31    Sec. 3. Minnesota Statutes 2006, section 120B.021, subdivision 1, is amended to read:24.32    Subdivision 1. Required academic standards. The following subject areas are 24.33required for statewide accountability:24.34    (1) language arts;24.35    (2) mathematics;25.1    (3) science;25.2    (4) social studies, including history, geography, economics, and government and 25.3citizenship;25.4    (5) health and physical education, for which locally developed academic standards 25.5apply; and25.6    (6) the arts, for which statewide or locally developed academic standards apply, as 25.7determined by the school district. Public elementary and middle schools must offer at least 25.8three and require at least two of the following four arts areas: dance; music; theater; and 25.9visual arts. Public high schools must offer at least three and require at least one of the 25.10following five arts areas: media arts; dance; music; theater; and visual arts.25.11    The commissioner must submit proposed standards in science and social studies to 25.12the legislature by February 1, 2004.25.13For purposes of applicable federal law, the academic standards for language arts, 25.14mathematics, and science apply to all public school students, except the very few students 25.15with extreme cognitive or physical impairments for whom an individualized education 25.16plan team has determined that the required academic standards are inappropriate. 25.17An individualized education plan team that makes this determination must establish 25.18alternative standards.25.19    A school district, no later than the 2007-2008 school year, must adopt graduation 25.20requirements that meet or exceed state graduation requirements established in law or 25.21rule. A school district that incorporates these state graduation requirements before the 25.222007-2008 school year must provide students who enter the 9th grade in or before 25.23the 2003-2004 school year the opportunity to earn a diploma based on existing locally 25.24established graduation requirements in effect when the students entered the 9th grade. 25.25District efforts to develop, implement, or improve instruction or curriculum as a result 25.26of the provisions of this section must be consistent with sections 
         120B.10, 
         120B.11, 25.27and 
         120B.20. 25.28    The commissioner must include the contributions of Minnesota American Indian 25.29tribes and communities as they relate to the academic standards during the review and 25.30revision of the required academic standards.25.31EFFECTIVE DATE.This section is effective for the 2008-2009 school year and 25.32later.25.33    Sec. 4. Minnesota Statutes 2006, section 120B.022, subdivision 1, is amended to read:26.1    Subdivision 1. Elective standards.(a) A district must establish its own standards in 26.2the following subject areas:26.3    (1) vocational and technical education; and26.4    (2) world languages.26.5    A school district must offer courses in all elective subject areas.26.6    (b) World languages teachers and other school staff should develop and implement 26.7world languages programs that acknowledge and reinforce the language proficiency and 26.8cultural awareness that non-English language speakers already possess, and encourage 26.9students' proficiency in multiple world languages. Programs under this paragraph must 26.10encompass indigenous American Indian languages and cultures, among other world 26.11languages and cultures. The department shall consult with postsecondary institutions in 26.12developing related professional development opportunities.26.13    Sec. 5. Minnesota Statutes 2006, section 120B.12, subdivision 2, is amended to read:26.14    Subd. 2. Identification. For the 2002-2003 school year and later, each school 26.15district shall identify before the end of first grade students who are at risk of not 26.16learning to read before the end of second grade. The district must use a locally adopted 26.17assessment method. The district must annually report the results of the assessment to the 26.18commissioner by June 1.26.19    Sec. 6. Minnesota Statutes 2006, section 120B.132, is amended to read:26.20120B.132 RAISED ACADEMIC ACHIEVEMENT; ADVANCED 26.21PLACEMENT AND INTERNATIONAL BACCALAUREATE PROGRAMS.26.22    Subdivision 1. Establishment; eligibility. A program is established to raise 26.23kindergarten through grade 12 academic achievement through increased student 26.24participation in preadvanced placement and, advanced placement, and international 26.25baccalaureate programs, consistent with section 120B.13. Schools and charter schools 26.26eligible to participate under this section: 26.27    (1) must have a three-year plan approved by the local school board to establish a new 26.28international baccalaureate program leading to international baccalaureate authorization, 26.29expand an existing program that leads to international baccalaureate authorization, or 26.30expand an existing authorized international baccalaureate program; or26.31    (2) must have a three-year plan approved by the local school board to create a new or 26.32expand an existing program to implement the college board advanced placement courses 26.33and exams or preadvanced placement courses initiative; and 26.34    (2) (3) must propose to further raise students' academic achievement by: 27.1    (i) increasing the availability of and all students' access to advanced placement or 27.2international baccalaureate courses or programs; 27.3    (ii) expanding the breadth of advanced placement or international baccalaureate 27.4courses or programs that are available to students; 27.5    (iii) increasing the number and the diversity of the students who participate in 27.6advanced placement or international baccalaureate courses or programs and succeed; 27.7    (iv) providing low-income and other disadvantaged students with increased access 27.8to advanced placement or international baccalaureate courses and programs; or 27.9    (v) increasing the number of high school students, including low-income and other 27.10disadvantaged students, who receive college credit by successfully completing advanced 27.11placement or international baccalaureate courses or programs and achieving satisfactory 27.12scores on related exams.27.13    Subd. 2. Application and review process; funding priority. (a) Charter schools 27.14and school districts in which eligible schools under subdivision 1 are located may 27.15apply to the commissioner, in the form and manner the commissioner determines, for 27.16competitive funding to further raise students' academic achievement. The application must 27.17detail the specific efforts the applicant intends to undertake in further raising students' 27.18academic achievement, consistent with subdivision 1, and a proposed budget detailing 27.19the district or charter school's current and proposed expenditures for advanced placement 27.20or, preadvanced placement, and international baccalaureate courses and programs. The 27.21proposed budget must demonstrate that the applicant's efforts will supplement but not 27.22supplant any expenditures for advanced placement and preadvanced placement courses and 27.23programs the applicant currently makes available to students support implementation of 27.24advanced placement, preadvanced placement, and international baccalaureate courses and 27.25programs. Expenditures for administration must not exceed five percent of the proposed 27.26budget. The commissioner may require an applicant to provide additional information.27.27    (b) When reviewing applications, the commissioner must determine whether 27.28the applicant satisfied all the requirements in this subdivision and subdivision 1. 27.29The commissioner may give funding priority to an otherwise qualified applicant that 27.30demonstrates:27.31    (1) a focus on developing or expanding preadvanced placement, advanced 27.32placement, or international baccalaureate courses and or programs or increasing students' 27.33participation in, access to, or success with the courses or programs, including the 27.34participation, access, or success of low-income and other disadvantaged students;27.35    (2) a compelling need for access to preadvanced placement, advanced placement, or 27.36international baccalaureate courses or programs;28.1    (3) an effective ability to actively involve local business and community 28.2organizations in student activities that are integral to preadvanced placement, advanced 28.3placement, or international baccalaureate courses and or programs; 28.4    (4) access to additional public or nonpublic funds or in-kind contributions that are 28.5available for preadvanced placement, advanced placement, or international baccalaureate 28.6courses or programs; or28.7    (5) an intent to implement activities that target low-income and other disadvantaged 28.8students.28.9    Subd. 3. Funding; permissible funding uses. (a) The commissioner shall award 28.10grants to applicant school districts and charter schools that meet the requirements of 28.11subdivisions 1 and 2. The commissioner must award grants on an equitable geographical 28.12basis to the extent feasible and consistent with this section. Grant awards must not exceed 28.13the lesser of:28.14    (1) $85 times the number of pupils enrolled at the participating sites on October 28.151 of the previous fiscal year; or28.16    (2) the approved supplemental expenditures based on the budget submitted under 28.17subdivision 2. For charter schools in their first year of operation, the maximum grant28.18funding award must be calculated using the number of pupils enrolled on October 1 of 28.19the current fiscal year. The commissioner may adjust the maximum grant funding award 28.20computed using prior year data for changes in enrollment attributable to school closings, 28.21school openings, grade level reconfigurations, or school district reorganizations between 28.22the prior fiscal year and the current fiscal year.28.23    (b) School districts and charter schools that submit an application and receive 28.24funding under this section must use the funding, consistent with the application, to:28.25    (1) provide teacher training and instruction to more effectively serve students, 28.26including low-income and other disadvantaged students, who participate in preadvanced 28.27andplacement, advanced placement, or international baccalaureate courses or programs;28.28    (2) further develop preadvanced placement, advanced placement, or international 28.29baccalaureate courses or programs;28.30    (3) improve the transition between grade levels to better prepare students, including 28.31low-income and other disadvantaged students, for succeeding in preadvanced placement, 28.32advanced placement, or international baccalaureate courses or programs;28.33    (4) purchase books and supplies;28.34    (5) pay course or program fees;28.35    (6) increase students' participation in and success with preadvanced placement, 28.36advanced placement, or international baccalaureate courses or programs;29.1    (7) expand students' access to preadvanced placement or, advanced placement, or 29.2international baccalaureate courses or programs through online learning;29.3    (8) hire appropriately licensed personnel to teach additional advanced placement 29.4or international baccalaureate courses or programs; or29.5    (9) engage in other activity directly related to expanding students' access to, 29.6participation in, and success with preadvanced placement or, advanced placement, or 29.7international baccalaureate courses and or programs, including low-income and other 29.8disadvantaged students.29.9    Subd. 4. Annual reports. (a) Each school district and charter school that receives 29.10a grant under this section annually must collect demographic and other student data to 29.11demonstrate and measure the extent to which the district or charter school raised students' 29.12academic achievement under this program and must report the data to the commissioner 29.13in the form and manner the commissioner determines. The commissioner annually by 29.14February 15 must make summary data about this program available to the education 29.15policy and finance committees of the legislature.29.16    (b) Each school district and charter school that receives a grant under this section 29.17annually must report to the commissioner, consistent with the Uniform Financial 29.18Accounting and Reporting Standards, its actual expenditures for advanced placement and,29.19preadvanced placement, and international baccalaureate courses and programs. The report 29.20must demonstrate that the school district or charter school has maintained its effort from 29.21other sources for advanced placement and, preadvanced placement, and international 29.22baccalaureate courses and programs compared with the previous fiscal year, and the 29.23district or charter school has expended all grant funds, consistent with its approved budget.29.24EFFECTIVE DATE.This section is effective the day following final enactment 29.25and applies to the 2007-2008 school year and later.29.26    Sec. 7. Minnesota Statutes 2006, section 120B.15, is amended to read:29.27120B.15 GIFTED AND TALENTED STUDENTS PROGRAMS.29.28    (a) School districts may identify students, locally develop programs, provide 29.29staff development, and evaluate programs to provide gifted and talented students with 29.30challenging educational programs.29.31    (b) School districts may adopt guidelines for assessing and identifying students for 29.32participation in gifted and talented programs. The guidelines should include the use of:29.33    (1) multiple and objective criteria; and30.1    (2) assessments and procedures that are valid and reliable, fair, and based on current 30.2theory and research.30.3    (c) School districts must adopt procedures for the academic acceleration of gifted 30.4and talented students. These procedures must include how the district will:30.5    (1) assess a student's readiness and motivation for acceleration; and30.6    (2) match the level, complexity, and pace of the curriculum to a student to achieve 30.7the best type of academic acceleration for that student.30.8    Sec. 8. Minnesota Statutes 2006, section 120B.30, is amended to read:30.9120B.30 STATEWIDE TESTING AND REPORTING SYSTEM.30.10    Subdivision 1. Statewide testing. (a) The commissioner, with advice from experts 30.11with appropriate technical qualifications and experience and stakeholders, consistent with 30.12subdivision 1a, shall include in the comprehensive assessment system, for each grade 30.13level to be tested, state-constructed tests developed from and aligned with the state's 30.14required academic standards under section 
         120B.021 and administered annually to all 30.15students in grades 3 through 8 and at the high school level. A state-developed test in a 30.16subject other than writing, developed after the 2002-2003 school year, must include both 30.17machine-scoreable and constructed response questions. The commissioner shall establish 30.18one or more months during which schools shall administer the tests to students each 30.19school year. For students enrolled in grade 8 before the 2005-2006 school year, only 30.20Minnesota basic skills tests in reading, mathematics, and writing shall fulfill students' 30.21basic skills testing requirements for a passing state notation. The passing scores of the 30.22state basic skills tests in reading and mathematics are the equivalent of:30.23    (1) 70 percent correct for students entering grade 9 in 1996; and30.24    (2) 75 percent correct for students entering grade 9 in 1997 and thereafter, as based 30.25on the first uniform test administration of February 1998.30.26    (b) For students enrolled in grade 8 in the 2005-2006 school year and later, only 30.27the Minnesota Comprehensive Assessments Second Edition (MCA-IIs) in reading, 30.28mathematics, and writing following options shall fulfill students' academic standard state 30.29graduation test requirements.:30.30    (1) for reading and mathematics:30.31    (i) obtaining an achievement level equivalent to or greater than proficient as 30.32determined through a standard setting process on the Minnesota comprehensive 30.33assessments in grade 10 for reading and grade 11 for mathematics or achieving a passing 30.34score as determined through a standard setting process on the graduation-required 31.1assessment for diploma in grade 10 for reading and grade 11 for mathematics or 31.2subsequent retests;31.3    (ii) achieving a passing score as determined through a standard setting process on the 31.4state-identified language proficiency test in reading and the mathematics test for English 31.5language learners or the graduation-required assessment for diploma equivalent of those 31.6assessments for students designated as English language learners;31.7    (iii) achieving an individual passing score on the graduation-required assessment 31.8for diploma as determined by appropriate state guidelines for students with an individual 31.9education plan or 504 plan;31.10    (iv) obtaining achievement level equivalent to or greater than proficient as 31.11determined through a standard setting process on the state-identified alternate assessment 31.12or assessments in grade 10 for reading and grade 11 for mathematics for students with 31.13an individual education plan; or31.14    (v) achieving an individual passing score on the state-identified alternate assessment 31.15or assessments as determined by appropriate state guidelines for students with an 31.16individual education plan; and31.17    (2) for writing:31.18    (i) achieving a passing score on the graduation-required assessment for diploma;31.19    (ii) achieving a passing score as determined through a standard setting process on 31.20the state-identified language proficiency test in writing for students designated as English 31.21language learners;31.22    (iii) achieving an individual passing score on the graduation-required assessment 31.23for diploma as determined by appropriate state guidelines for students with an individual 31.24education plan or 504 plan; or31.25    (iv) achieving an individual passing score on the state-identified alternate assessment 31.26or assessments as determined by appropriate state guidelines for students with an 31.27individual education plan.31.28    (b) (c) The third 3rd through 8th grade and high school level test results shall 31.29be available to districts for diagnostic purposes affecting student learning and district 31.30instruction and curriculum, and for establishing educational accountability. The 31.31commissioner must disseminate to the public the test results upon receiving those results.31.32    (c) (d) State tests must be constructed and aligned with state academic standards. The 31.33testing process and the order of administration shall be determined by the commissioner. 31.34The statewide results shall be aggregated at the site and district level, consistent with 31.35subdivision 1a.32.1    (d) (e) In addition to the testing and reporting requirements under this section, the 32.2commissioner shall include the following components in the statewide public reporting 32.3system:32.4    (1) uniform statewide testing of all students in grades 3 through 8 and at the high 32.5school level that provides appropriate, technically sound accommodations, alternate 32.6assessments, or exemptions consistent with applicable federal law, only with parent or 32.7guardian approval, for those very few students for whom the student's individual education 32.8plan team under sections 
         125A.05 and 
         125A.06, determines that the general statewide 32.9test is inappropriate for a student is incapable of taking a statewide test, or for a limited 32.10English proficiency student under section 
         124D.59, subdivision 2, if the student has been 32.11in the United States for fewer than three years;32.12    (2) educational indicators that can be aggregated and compared across school 32.13districts and across time on a statewide basis, including average daily attendance, high 32.14school graduation rates, and high school drop-out rates by age and grade level;32.15    (3) students' scores state results on the American College Test; and32.16    (4) state results from participation in the National Assessment of Educational 32.17Progress so that the state can benchmark its performance against the nation and other 32.18states, and, where possible, against other countries, and contribute to the national effort 32.19to monitor achievement.32.20    (e) Districts must report exemptions under paragraph (d), clause (1), to the 32.21commissioner consistent with a format provided by the commissioner.32.22    Subd. 1a. Statewide and local assessments; results. (a) The commissioner must 32.23develop reading, mathematics, and science assessments aligned with state academic 32.24standards that districts and sites must use to monitor student growth toward achieving 32.25those standards. The commissioner must not develop statewide assessments for academic 32.26standards in social studies, health and physical education, and the arts. The commissioner 32.27must require:32.28    (1) annual reading and mathematics assessments in grades 3 through 8 and at the 32.29high school level for the 2005-2006 school year and later; and32.30    (2) annual science assessments in one grade in the grades 3 through 5 span, the 32.31grades 6 through 9 span, and a life sciences assessment in the grades 10 through 12 span 32.32for the 2007-2008 school year and later.32.33    (b) The commissioner must ensure that all statewide tests administered to elementary 32.34and secondary students measure students' academic knowledge and skills and not students' 32.35values, attitudes, and beliefs.32.36    (c) Reporting of assessment results must:33.1    (1) provide timely, useful, and understandable information on the performance of 33.2individual students, schools, school districts, and the state;33.3    (2) include, by the 2006-2007no later than the 2008-2009 school year, a value-added 33.4component tothat is in addition to a measure for student achievement growth over time; 33.5and33.6    (3)(i) for students enrolled in grade 8 before the 2005-2006 school year, determine 33.7whether students have met the state's basic skills requirements; and33.8    (ii) for students enrolled in grade 8 in the 2005-2006 school year and later, determine 33.9whether students have met the state's academic standards.33.10    (d) Consistent with applicable federal law and subdivision 1, paragraph (d), clause 33.11(1), the commissioner must include appropriate, technically sound accommodations or33.12alternative assessments for the very few students with disabilities for whom statewide 33.13assessments are inappropriate and for students with limited English proficiency.33.14    (e) A school, school district, and charter school must administer statewide 33.15assessments under this section, as the assessments become available, to evaluate student 33.16progress in achieving the academic standards. If a state assessment is not available, a 33.17school, school district, and charter school must determine locally if a student has met 33.18the required academic standards. A school, school district, or charter school may use a 33.19student's performance on a statewide assessment as one of multiple criteria to determine 33.20grade promotion or retention. A school, school district, or charter school may use a high 33.21school student's performance on a statewide assessment as a percentage of the student's 33.22final grade in a course, or place a student's assessment score on the student's transcript.33.23    Subd. 2. Department of Education assistance. The Department of Education 33.24shall contract for professional and technical services according to competitive bidding 33.25procedures under chapter 16C for purposes of this section.33.26    Subd. 3. Reporting. The commissioner shall report test data publicly and to 33.27stakeholders, including the three performance baselines performance achievement levels33.28developed from students' unweighted mean test scores in each tested subject and a listing of 33.29demographic factors that strongly correlate with student performance. The commissioner 33.30shall also report data that compares performance results among school sites, school 33.31districts, Minnesota and other states, and Minnesota and other nations. The commissioner 33.32shall disseminate to schools and school districts a more comprehensive report containing 33.33testing information that meets local needs for evaluating instruction and curriculum.33.34    Subd. 4. Access to tests. The commissioner must adopt and publish a policy 33.35to provide public and parental access for review of basic skills tests, Minnesota 33.36Comprehensive Assessments, or any other such statewide test and assessment. Upon 34.1receiving a written request, the commissioner must make available to parents or guardians 34.2a copy of their student's actual answer sheet responses to the test questions to be reviewed 34.3by the parent.34.4    Sec. 9. Minnesota Statutes 2006, section 120B.31, subdivision 3, is amended to read:34.5    Subd. 3. Educational accountability. (a) The Independent Office of Educational 34.6Accountability, as authorized by Laws 1997, First Special Session chapter 4, article 5, 34.7section 28, subdivision 2, is established, and shall be funded through the Board of Regents 34.8of the University of Minnesota. The office shall advise the education committees of 34.9the legislature and the commissioner of education, at least on a biennial basis, on the 34.10degree to which the statewide educational accountability and reporting system includes a 34.11comprehensive assessment framework that measures school accountability for students 34.12achieving the goals described in the state's results-oriented graduation rule. The office shall 34.13consider determine and annually report to the legislature whether and how effectively: 34.14    (1) the statewide system of educational accountability utilizes multiple indicators to 34.15provide valid and reliable comparative and contextual data on students, schools, districts, 34.16and the state, and if not, recommend ways to improve the accountability reporting system.;34.17    (2) the commissioner makes statistical adjustments when reporting student data over 34.18time, consistent with clause (4);34.19    (3) the commissioner uses indicators of student achievement growth over time 34.20and a value-added assessment model that estimates the effects of the school and school 34.21district on student achievement to measure school performance, consistent with section 34.22120B.36, subdivision 1;34.23    (4) the commissioner makes data available on students who do not pass one or more 34.24of the state's required GRAD tests and do not receive a diploma as a consequence, and 34.25categorizes these data according to gender, race, eligibility for free or reduced lunch, and 34.26English language proficiency; and34.27    (5) the commissioner fulfills the requirements under section 127A.095, subdivision 2.34.28    (b) When the office reviews the statewide educational accountability and reporting 34.29system, it shall also consider:34.30    (1) the objectivity and neutrality of the state's educational accountability system; and34.31    (2) the impact of a testing program on school curriculum and student learning.34.32EFFECTIVE DATE.This section is effective the day following final enactment.34.33    Sec. 10. Minnesota Statutes 2006, section 120B.36, subdivision 1, is amended to read:35.1    Subdivision 1. School performance report cards. (a) The commissioner shall 35.2use objective criteria based on levels of student performance to identify four to six 35.3designations applicable to high and low performing public schools. The objective 35.4criteria shall include report at least student academic performance, school safety, two 35.5separate student-to-teacher ratios that clearly indicate the definition of teacher consistent 35.6with sections 122A.06 and 122A.15 for purposes of determining these ratios, and staff 35.7characteristics, with a value-added growth component added by the 2006-2007 no later 35.8than the 2008-2009 school year. The report must indicate a school's adequate yearly 35.9progress status, and must not set any designations applicable to high- and low-performing 35.10schools due solely to adequate yearly progress status.35.11    (b) The commissioner shall develop, annually update, and post on the department 35.12Web site school performance report cards. A school's designation must be clearly stated 35.13on each school performance report card.35.14    (c) The commissioner must make available the first school designations and school35.15performance report cards by November 2003, and during the beginning of each school 35.16year thereafter.35.17    (d) A school or district may appeal its adequate yearly progress status in writing 35.18a designation under this section to the commissioner within 30 days of receiving the 35.19designation notice of its status. The commissioner's decision to uphold or deny an appeal 35.20is final.35.21    (e) School performance report cards data are nonpublic data under section 
         13.02, 35.22subdivision 9
         , until not later than ten days after the appeal procedure described in 35.23paragraph (d) concludes. The department shall annually post school performance report 35.24cards to its public Web site no later than September 1. 35.25EFFECTIVE DATE.This section is effective the day following final enactment 35.26and applies to the school performance report cards for the 2006-2007 school year and later.35.27    Sec. 11. [121A.231] RESPONSIBLE FAMILY LIFE AND SEXUALITY 35.28EDUCATION PROGRAMS.35.29    Subdivision 1.Definitions.(a) "Responsible family life and sexuality education" 35.30means education in grades 7 through 12 that:35.31    (1) respects community values and encourages family communication;35.32    (2) develops skills in communication, decision making, and conflict resolution;35.33    (3) contributes to healthy relationships;35.34    (4) provides human development and sexuality education that is age appropriate 35.35and medically accurate;36.1    (5) includes an abstinence-first approach to delaying initiation of sexual activity that 36.2emphasizes abstinence while also including education about the use of protection and 36.3contraception; and36.4    (6) promotes individual responsibility.36.5    (b) "Age appropriate" refers to topics, messages, and teaching methods suitable to 36.6particular ages or age groups of children and adolescents, based on developing cognitive, 36.7emotional, and behavioral capacity typical for the age or age group.36.8    (c) "Medically accurate" means verified or supported by research conducted in 36.9compliance with scientific methods and published in peer-reviewed journals, where 36.10appropriate, and recognized as accurate and objective by professional organizations 36.11and agencies in the relevant field, such as the federal Centers for Disease Control 36.12and Prevention, the American Public Health Association, the American Academy of 36.13Pediatrics, or the American College of Obstetricians and Gynecologists.36.14    Subd. 2.Curriculum requirements.(a) A school district must offer and may 36.15independently establish policies, procedures, curriculum, and services for providing 36.16responsible family life and sexuality education that is age appropriate and medically 36.17accurate for grades 7 through 12.36.18    (b) A school district must consult with parents or guardians of enrolled students 36.19when establishing policies, procedures, curriculum, and services under this subdivision.36.20    Subd. 3.Notice and parental options.(a) It is the legislature's intent to encourage 36.21pupils to communicate with their parents or guardians about human sexuality and to respect 36.22rights of parents or guardians to supervise their children's education on these subjects.36.23    (b) Parents or guardians may excuse their children from all or part of a responsible 36.24family life and sexuality education program.36.25    (c) A school district must establish policies and procedures consistent with 36.26paragraph (e) and this section for providing parents or guardians reasonable notice with 36.27the following information:36.28    (1) if the district is offering a responsible family life and sexuality education program 36.29to the parents' or guardians' child during the course of the year;36.30    (2) how the parents or guardians may inspect the written and audio/visual 36.31educational materials used in the program and the process for inspection;36.32    (3) if the program is presented by school district personnel or outside consultants, 36.33and if outside consultants are used, who they may be; and 36.34    (4) parents' or guardians' right to choose not to have their child participate in the 36.35program and the procedure for exercising that right.37.1    (d) A school district must establish policies and procedures for reasonably restricting 37.2the availability of written and audio/visual educational materials from public view of 37.3students who have been excused from all or part of a responsible family life and sexuality 37.4education program at the request of a parent or guardian, consistent with paragraph (e) 37.5and this section.37.6    (e) A school district may develop a policy for a parent, guardian, or adult student 37.7age 18 or older to review the content of the instructional materials under this section. If a 37.8school district develops a policy, it must make reasonable arrangements with school 37.9personnel for alternative instruction for those pupils whose parents or guardians object to 37.10the content of the instruction, and must not impose an academic or other penalty upon a 37.11pupil merely for arranging the alternative instruction. School personnel may evaluate and 37.12assess the quality of the pupil's work completed as part of the alternative instruction.37.13    Subd. 4.Assistance to school districts.(a) The Department of Education may 37.14offer services to school districts to help them implement effective responsible family life 37.15and sexuality education programs. In making these services available the department 37.16may provide:37.17    (1) training for teachers, parents, and community members in the development of 37.18responsible family life and sexuality education curriculum or services and in planning 37.19for monitoring and evaluation activities;37.20    (2) resource staff persons to provide expert training, curriculum development and 37.21implementation, and evaluation services;37.22    (3) technical assistance to promote and coordinate community, parent, and youth 37.23forums in communities identified as having high needs for responsible family life and 37.24sexuality education;37.25    (4) technical assistance for issue management and policy development training for 37.26school boards, superintendents, principals, and administrators across the state; and 37.27    (b) Technical assistance in accordance with National Health Education Standards 37.28provided by the department to school districts may:37.29    (1) promote instruction and use of materials that are age appropriate;37.30    (2) provide information that is medically accurate and objective;37.31    (3) provide instruction and promote use of materials that are respectful of marriage 37.32and commitments in relationships;37.33    (4) provide instruction and promote use of materials that are appropriate for use 37.34with pupils and family experiences based on race, gender, sexual orientation, ethnic 37.35and cultural background, and appropriately accommodate alternative learning based on 37.36language or disability;38.1    (5) provide instruction and promote use of materials that encourage pupils to 38.2communicate with their parents or guardians about human sexuality;38.3    (6) provide instruction and promote use of age-appropriate materials that teach 38.4abstinence from sexual intercourse as the only certain way to prevent unintended 38.5pregnancy or sexually transmitted infections, including HIV, Chlamydia, and HPV, and 38.6provide information about the role and value of abstinence while also providing medically 38.7accurate information on other methods of preventing and reducing risk for unintended 38.8pregnancy and sexually transmitted infections;38.9    (7) provide instruction and promote use of age-appropriate materials that are 38.10medically accurate in explaining transmission modes, risks, symptoms, and treatments for 38.11sexually transmitted infections, including HIV, Chlamydia, and HPV;38.12    (8) provide instruction and promote use of age-appropriate materials that address 38.13varied societal views on sexuality, sexual behaviors, pregnancy, and sexually transmitted 38.14infections, including HIV, Chlamydia, and HPV, in an age-appropriate manner;38.15    (9) provide instruction and promote use of age-appropriate materials that provide 38.16information about the effectiveness and safety of all FDA-approved methods for 38.17preventing and reducing risk for unintended pregnancy and sexually transmitted infections, 38.18including HIV, Chlamydia, and HPV;38.19    (10) provide instruction and promote use of age-appropriate materials that provide 38.20instruction in skills for making and implementing responsible decisions about sexuality;38.21    (11) provide instruction and promote use of age-appropriate materials that provide 38.22instruction in skills for making and implementing responsible decisions about finding and 38.23using health services; and 38.24    (12) provide instruction and promote use of age-appropriate materials that do not 38.25teach or promote religious doctrine or bias against a religion or reflect or promote bias 38.26against any person on the basis of any category protected under the Minnesota Human 38.27Rights Act, chapter 363A.38.28    Sec. 12. Minnesota Statutes 2006, section 122A.20, subdivision 1, is amended to read:38.29    Subdivision 1. Grounds for revocation, suspension, or denial. (a) The Board of 38.30Teaching or Board of School Administrators, whichever has jurisdiction over a teacher's 38.31licensure, may, on the written complaint of the school board employing a teacher, a teacher 38.32organization, or any other interested person, refuse to issue, refuse to renew, suspend, or 38.33revoke a teacher's license to teach for any of the following causes:38.34    (1) immoral character or conduct;38.35    (2) failure, without justifiable cause, to teach for the term of the teacher's contract;39.1    (3) gross inefficiency or willful neglect of duty;39.2    (4) failure to meet licensure requirements; or39.3    (5) fraud or misrepresentation in obtaining a license.39.4    The written complaint must specify the nature and character of the charges.39.5    (b) The Board of Teaching or Board of School Administrators, whichever 39.6has jurisdiction over a teacher's licensure, shall refuse to issue, refuse to renew, or 39.7automatically revoke a teacher's license to teach without the right to a hearing upon 39.8receiving a certified copy of a conviction showing that the teacher has been convicted 39.9of child abuse, as defined in section 
         609.185, or sexual abuse under section 
         609.342, 39.10609.343
         , 
         609.344, 
         609.345, 
         609.3451, subdivision 3, or 
         617.23, subdivision 3, orusing 39.11minors in a sexual performance under section 617.246, or possessing pornographic works 39.12involving a minor under section 617.247, or under a similar law of another state or the 39.13United States. The board shall send notice of this licensing action to the district in which 39.14the teacher is currently employed. 39.15    (c) A person whose license to teach has been revoked, not issued, or not renewed 39.16under paragraph (b), may petition the board to reconsider the licensing action if the 39.17person's conviction for child abuse or sexual abuse is reversed by a final decision of the 39.18Court of Appeals or the Supreme Court or if the person has received a pardon for the 39.19offense. The petitioner shall attach a certified copy of the appellate court's final decision or 39.20the pardon to the petition. Upon receiving the petition and its attachment, the board shall 39.21schedule and hold a disciplinary hearing on the matter under section 
         214.10, subdivision 2, 39.22unless the petitioner waives the right to a hearing. If the board finds that, notwithstanding 39.23the reversal of the petitioner's criminal conviction or the issuance of a pardon, the 39.24petitioner is disqualified from teaching under paragraph (a), clause (1), the board shall 39.25affirm its previous licensing action. If the board finds that the petitioner is not disqualified 39.26from teaching under paragraph (a), clause (1), it shall reverse its previous licensing action. 39.27    (d) For purposes of this subdivision, the Board of Teaching is delegated the authority 39.28to suspend or revoke coaching licenses.39.29EFFECTIVE DATE.This section is effective the day following final enactment.39.30    Sec. 13. Minnesota Statutes 2006, section 122A.415, is amended by adding a 39.31subdivision to read:39.32    Subd. 4.Basic alternative teacher compensation aid.(a) For fiscal year 2009 39.33and later, the basic alternative teacher compensation aid for a school district with a plan 39.34approved under section 122A.414, subdivision 2b, equals 73.1 percent of the alternative 39.35teacher compensation revenue under subdivision 1. The basic alternative teacher 40.1compensation aid for an intermediate school district or charter school with a plan approved 40.2under section 122A.414, subdivisions 2a and 2b, if the recipient is a charter school, equals 40.3$260 times the number of pupils enrolled in the school on October 1 of the previous 40.4fiscal year, or on October 1 of the current fiscal year for a charter school in the first year 40.5of operation, times the ratio of the sum of the alternative teacher compensation aid and 40.6alternative teacher compensation levy for all participating school districts to the maximum 40.7alternative teacher compensation revenue for those districts under subdivision 1.40.8    (b) Notwithstanding paragraph (a) and subdivision 1, the state total basic alternative 40.9teacher compensation aid entitlement must not exceed $43,515,000 for fiscal year 2009, 40.10$42,953,000 for fiscal year 2010, and $42,643,000 for fiscal year 2011 and later. The 40.11commissioner must limit the amount of alternative teacher compensation aid approved 40.12under this section so as not to exceed these limits.40.13EFFECTIVE DATE.This section is effective for revenue for fiscal year 2009 40.14and later.40.15    Sec. 14. Minnesota Statutes 2006, section 122A.415, is amended by adding a 40.16subdivision to read:40.17    Subd. 5.Alternative teacher compensation levy.For fiscal year 2009 and later, 40.18the alternative teacher compensation levy for a district receiving basic alternative teacher 40.19compensation aid equals the product of: (1) the difference between the district's alternative 40.20teacher compensation revenue, under subdivision 1, and the district's basic alternative 40.21teacher compensation aid, under subdivision 4; times (2) the lesser of one or the ratio of 40.22the district's adjusted net tax capacity per adjusted pupil unit to $5,913.40.23EFFECTIVE DATE.This section is effective for revenue for fiscal year 2009 40.24and later.40.25    Sec. 15. Minnesota Statutes 2006, section 122A.415, is amended by adding a 40.26subdivision to read:40.27    Subd. 6.Alternative teacher compensation aid.(a) For fiscal year 2009 and 40.28later, a district's alternative teacher compensation equalization aid equals the district's 40.29alternative teacher compensation revenue, minus the district's basic alternative teacher 40.30compensation aid, minus the district's alternative teacher compensation levy. If a district 40.31does not levy the entire amount permitted under subdivision 5, the alternative teacher 40.32compensation equalization aid must be reduced in proportion to the actual amount levied.41.1    (b) A district's alternative teacher compensation aid equals the sum of the 41.2district's basic alternative teacher compensation aid and the district's alternative teacher 41.3compensation equalization aid.41.4EFFECTIVE DATE.This section is effective for revenue for fiscal year 2009 41.5and later.41.6    Sec. 16. Minnesota Statutes 2006, section 122A.61, is amended by adding a 41.7subdivision to read:41.8    Subd. 3.Coursework and training.A school district may use the revenue 41.9reserved under subdivision 1 for grants to the district's teachers to pay for coursework 41.10and training leading to certification as a college in the schools or concurrent enrollment 41.11teacher. In order to receive a grant, the teacher must be enrolled in a program that includes 41.12coursework and training focused on teaching a core subject.41.13    Sec. 17. Minnesota Statutes 2006, section 122A.72, subdivision 5, is amended to read:41.14    Subd. 5. Center functions.(a) A teacher center shall perform functions according 41.15to this subdivision. The center shall assist teachers, diagnose learning needs, experiment 41.16with the use of multiple instructional approaches, assess pupil outcomes, assess staff 41.17development needs and plans, and teach school personnel about effective pedagogical 41.18approaches. The center shall develop and produce curricula and curricular materials 41.19designed to meet the educational needs of pupils being served, by applying educational 41.20research and new and improved methods, practices, and techniques. The center shall 41.21provide programs to improve the skills of teachers to meet the special educational needs of 41.22pupils. The center shall provide programs to familiarize teachers with developments in 41.23curriculum formulation and educational research, including how research can be used to 41.24improve teaching skills. The center shall facilitate sharing of resources, ideas, methods, 41.25and approaches directly related to classroom instruction and improve teachers' familiarity 41.26with current teaching materials and products for use in their classrooms. The center shall 41.27provide in-service programs.41.28    (b) Each teacher center must provide a professional development program to train 41.29interested and highly qualified elementary, middle, and secondary teachers, selected by the 41.30employing school district, to assist other teachers in that district with mathematics and 41.31science curriculum, standards, and instruction so that all teachers have access to:41.32    (1) high quality professional development programs in mathematics and science 41.33that address curriculum, instructional methods, alignment of standards, and performance 42.1measurements, enhance teacher and student learning, and support state mathematics and 42.2science standards; and 42.3    (2) research-based mathematics and science programs and instructional models 42.4premised on best practices that inspire teachers and students and have practical classroom 42.5application.42.6EFFECTIVE DATE.This section is effective for the 2007-2008 school year and 42.7later.42.8    Sec. 18. Minnesota Statutes 2006, section 123B.02, is amended by adding a 42.9subdivision to read:42.10    Subd. 24.Membership in economic development, community, and civic 42.11organizations.The board may authorize and pay for the membership of the school 42.12district or of any district representative designated by the board in those local economic 42.13development associations or other community or civic organizations that the board deems 42.14appropriate.42.15    Sec. 19. Minnesota Statutes 2006, section 123B.143, subdivision 1, is amended to read:42.16    Subdivision 1. Contract; duties. All districts maintaining a classified secondary 42.17school must employ a superintendent who shall be an ex officio nonvoting member of the 42.18school board. The authority for selection and employment of a superintendent must be 42.19vested in the board in all cases. An individual employed by a board as a superintendent 42.20shall have an initial employment contract for a period of time no longer than three years 42.21from the date of employment. Any subsequent employment contract must not exceed a 42.22period of three years. A board, at its discretion, may or may not renew an employment 42.23contract. A board must not, by action or inaction, extend the duration of an existing 42.24employment contract. Beginning 365 days prior to the expiration date of an existing 42.25employment contract, a board may negotiate and enter into a subsequent employment 42.26contract to take effect upon the expiration of the existing contract. A subsequent contract 42.27must be contingent upon the employee completing the terms of an existing contract. If a 42.28contract between a board and a superintendent is terminated prior to the date specified in 42.29the contract, the board may not enter into another superintendent contract with that same 42.30individual that has a term that extends beyond the date specified in the terminated contract. 42.31A board may terminate a superintendent during the term of an employment contract for any 42.32of the grounds specified in section 
         122A.40, subdivision 9 or 13. A superintendent shall 42.33not rely upon an employment contract with a board to assert any other continuing contract 42.34rights in the position of superintendent under section 
         122A.40. Notwithstanding the 43.1provisions of sections 
         122A.40, subdivision 10 or 11, 
         123A.32, 
         123A.75, or any other law 43.2to the contrary, no individual shall have a right to employment as a superintendent based 43.3on order of employment in any district. If two or more districts enter into an agreement for 43.4the purchase or sharing of the services of a superintendent, the contracting districts have 43.5the absolute right to select one of the individuals employed to serve as superintendent 43.6in one of the contracting districts and no individual has a right to employment as the 43.7superintendent to provide all or part of the services based on order of employment in a 43.8contracting district. The superintendent of a district shall perform the following: 43.9    (1) visit and supervise the schools in the district, report and make recommendations 43.10about their condition when advisable or on request by the board;43.11    (2) recommend to the board employment and dismissal of teachers;43.12    (3) superintend school grading practices and examinations for promotions;43.13    (4) make reports required by the commissioner;43.14    (5) by January 10, submit an annual report to the commissioner in a manner 43.15prescribed by the commissioner, in consultation with school districts, identifying the 43.16expenditures that the district requires to ensure an 80 percent student passage rate on the 43.17basic standards test MCA-IIs taken in the eighth grade, identifying the highest student 43.18passage rate the district expects it will be able to attain on the basic standards test MCA-IIs43.19by grade 12, and the amount of expenditures that the district requires to attain the targeted 43.20student passage rate, and how much the district is cross-subsidizing programs with special 43.21education, basic skills, and general education revenue; and43.22    (6) perform other duties prescribed by the board.43.23    Sec. 20. Minnesota Statutes 2006, section 123B.92, subdivision 3, is amended to read:43.24    Subd. 3. Alternative attendance programs.(a) A district that enrolls nonresident 43.25pupils in programs under sections 
         124D.03, 
         124D.06, 
         124D.08, 
         123A.05 to 
         123A.08, 43.26and 
         124D.68, must provide authorized transportation to the pupil within the attendance 43.27area for the school that the pupil attends at the same level of service that is provided to 43.28resident pupils within the attendance area. The resident district need not provide or pay for 43.29transportation between the pupil's residence and the district's border. 43.30    (b) A district may provide transportation to allow a student who attends a high-need 43.31English language learner program and who resides within the transportation attendance 43.32area of the program to continue in the program until the student completes the highest 43.33grade level offered by the program.43.34EFFECTIVE DATE.This section is effective the day following final enactment.44.1    Sec. 21. [124D.091] CONCURRENT ENROLLMENT PROGRAM AID.44.2    Subdivision 1.Accreditation.To establish a uniform standard by which 44.3concurrent enrollment courses and professional development activities may be measured, 44.4postsecondary institutions are encouraged to apply for accreditation by the National 44.5Alliance of Concurrent Enrollment Partnership.44.6    Subd. 2.Eligibility.A district that offers a concurrent enrollment course according 44.7to an agreement under section 124D.09, subdivision 10, is eligible to receive aid for the 44.8costs of providing postsecondary courses at the high school. Beginning in fiscal year 2011, 44.9districts only are eligible for aid if the college or university concurrent enrollment courses 44.10offered by the district are accredited by the National Alliance of Concurrent Enrollment 44.11Partnership, in the process of being accredited, or are shown by clear evidence to be of 44.12comparable standard to accredited courses.44.13    Subd. 3.Aid.An eligible district shall receive $150 per pupil enrolled in a 44.14concurrent enrollment course. The money must be used to defray the cost of delivering 44.15the course at the high school. The commissioner shall establish application procedures 44.16and deadlines for receipt of aid payments.44.17    Sec. 22. Minnesota Statutes 2006, section 124D.095, subdivision 2, is amended to read:44.18    Subd. 2. Definitions. For purposes of this section, the following terms have the 44.19meanings given them.44.20    (a) "Online learning" is an interactive course or program that delivers instruction 44.21from a teacher to a student by computer; is combined with other traditional delivery 44.22methods that include frequent student assessment and may include actual teacher contact 44.23time; and meets or exceeds state academic standards.44.24    (b) "Online learning provider" is a school district, an intermediate school district, an 44.25organization of two or more school districts operating under a joint powers agreement, or 44.26a charter school located in Minnesota that provides online learning to students.44.27    (c) "Student" is a Minnesota resident enrolled in a school under section 
         120A.22, 44.28subdivision 4
         , in kindergarten through grade 12.44.29    (d) "Online learning student" is a student enrolled in an online learning course or 44.30program delivered by an online provider under paragraph (b).44.31    (e) "Enrolling district" means the school district or charter school in which a student 44.32is enrolled under section 
         120A.22, subdivision 4, for purposes of compulsory attendance.44.33    (f) "Supplemental online learning" means an online course taken in place of a course 44.34period during the regular school day at a local district school.45.1    (g) "Full-time online provider" means an enrolling school authorized by the 45.2department to deliver comprehensive public education at any or all of the elementary, 45.3middle, or high school levels.45.4    Sec. 23. Minnesota Statutes 2006, section 124D.095, subdivision 3, is amended to read:45.5    Subd. 3. Authorization; notice; limitations on enrollment. (a) A student may 45.6apply to an online learning provider to enroll in online learning for full-time enrollment in 45.7an approved online learning program under section 124D.03, 124D.08 or 124D.10, or for 45.8supplemental online learning. Notwithstanding sections 124D.03, 124D.08, and 124D.10, 45.9procedures for enrolling in online learning shall be as provided in this subdivision. A 45.10student age 17 or younger must have the written consent of a parent or guardian to apply. 45.11No school district or charter school may prohibit a student from applying to enroll in 45.12online learning. An online learning provider that accepts a student under this section must, 45.13within ten days, notify the student and the enrolling district if the enrolling district is not 45.14the online learning provider. The notice must report the student's course or program and 45.15hours of instruction. In order that a student may enroll in online learning, the student 45.16and the student's parents must submit an application to the online learning provider and 45.17identify the reason for enrolling in online learning. The online learning provider that 45.18accepts a student under this section must within ten days notify the student and the 45.19enrolling district in writing if the enrolling district is not the online learning provider. The 45.20student and family must notify the online learning provider of their intent to enroll in 45.21online learning within ten days of acceptance, at which time the student and parent must 45.22sign a statement of assurance that they have reviewed the online course or program and 45.23understand the expectations of online learning enrollment. The online learning provider 45.24must notify the enrolling district of the student's enrollment in online learning in writing 45.25on a form provided by the department.45.26    (b) Supplemental online learning notification to the enrolling district upon student 45.27enrollment in the online learning program will include the courses or program, credits 45.28to be awarded, the start date of online enrollment, and confirmation that the courses will 45.29meet the student's graduation plan. A student may enroll in supplemental online learning 45.30courses up to the midpoint of the enrolling district's term. The enrolling district may waive 45.31this requirement for special circumstances and upon acceptance by the online provider.45.32    (b) An online learning student must notify the enrolling district at least 30 days 45.33before taking an online learning course or program if the enrolling district is not providing 45.34the online learning. (c) An online learning provider must notify the commissioner that it is 46.1delivering online learning and report the number of online learning students it is accepting 46.2and the online learning courses and programs it is delivering.46.3    (c) (d) An online learning provider may limit enrollment if the provider's school 46.4board or board of directors adopts by resolution specific standards for accepting and 46.5rejecting students' applications.46.6    (d) (e) An enrolling district may reduce an online learning student's regular 46.7classroom instructional membership in proportion to the student's membership in online 46.8learning courses.46.9    Sec. 24. Minnesota Statutes 2006, section 124D.095, subdivision 4, is amended to read:46.10    Subd. 4. Online learning parameters. (a) An online learning student must receive 46.11academic credit for completing the requirements of an online learning course or program. 46.12Secondary credits granted to an online learning student must be counted toward the 46.13graduation and credit requirements of the enrolling district. An online learning provider 46.14must make available to the enrolling district the course syllabus, standard alignment, 46.15content outline, assessment requirements, and contact information for supplemental online 46.16courses taken by students in the enrolling district. The enrolling district must apply the 46.17same graduation requirements to all students, including online learning students, and 46.18must continue to provide nonacademic services to online learning students. If a student 46.19completes an online learning course or program that meets or exceeds a graduation 46.20standard or grade progression requirement at the enrolling district, that standard or 46.21requirement is met. The enrolling district must use the same criteria for accepting online 46.22learning credits or courses as it does for accepting credits or courses for transfer students 46.23under section 
         124D.03, subdivision 9. The enrolling district may reduce the teacher 46.24contact timecourse schedule of an online learning student in proportion to the number 46.25of online learning courses the student takes from an online learning provider that is not 46.26the enrolling district.46.27    (b) An online learning student may:46.28    (1) enroll in supplemental online learning courses during a single school year in a 46.29maximum of 12 semester-long courses or their equivalent delivered by an online learning 46.30provider or the enrolling district to a maximum of 50 percent of the student's full schedule 46.31of courses per term. A student may exceed the supplemental online learning registration 46.32limit if the enrolling district grants permission for supplemental online learning enrollment 46.33above the limit, or if an agreement is made between the enrolling district and the online 46.34learning provider for instructional services;47.1    (2) complete course work at a grade level that is different from the student's current 47.2grade level; and47.3    (3) enroll in additional courses with the online learning provider under a separate 47.4agreement that includes terms for payment of any tuition or course fees.47.5    (c) An online learning student has the same access to the computer hardware and 47.6education software available in a school as all other students in the enrolling district. An 47.7online learning provider must assist an online learning student whose family qualifies 47.8for the education tax credit under section 
         290.0674 to acquire computer hardware and 47.9educational software for online learning purposes.47.10    (d) An enrolling district may offer online learning to its enrolled students. Such 47.11online learning does not generate online learning funds under this section. An enrolling 47.12district that offers online learning only to its enrolled students is not subject to the 47.13reporting requirements or review criteria under subdivision 7. A teacher with a Minnesota 47.14license must assemble and deliver instruction to enrolled students receiving online 47.15learning from an enrolling district. The delivery of instruction occurs when the student 47.16interacts with the computer or the teacher and receives ongoing assistance and assessment 47.17of learning. The instruction may include curriculum developed by persons other than a 47.18teacher with a Minnesota license.47.19    (e) An online learning provider that is not the enrolling district is subject to 47.20the reporting requirements and review criteria under subdivision 7. A teacher with a 47.21Minnesota license must assemble and deliver instruction to online learning students. The 47.22delivery of instruction occurs when the student interacts with the computer or the teacher 47.23and receives ongoing assistance and assessment of learning. The instruction may include 47.24curriculum developed by persons other than a teacher with a Minnesota license. Unless 47.25the commissioner grants a waiver, a teacher providing online learning instruction must not 47.26instruct more than 40 students in any one online learning course or program.47.27    (f) To enroll in more than 50 percent of the student's full schedule of courses per term 47.28in online learning, the student must qualify to exceed the supplemental online learning 47.29registration limit under paragraph (b) or apply for enrollment to an approved full-time 47.30online learning program following appropriate procedures in subdivision 3, paragraph (a). 47.31Full-time online learning students may enroll in classes at a local school per contract for 47.32instructional services between the online learning provider and the school district.47.33    Sec. 25. Minnesota Statutes 2006, section 124D.095, subdivision 7, is amended to read:47.34    Subd. 7. Department of Education. (a) The department must review and certify 47.35online learning providers. The online learning courses and programs must be rigorous, 48.1aligned with state academic standards, and contribute to grade progression in a single 48.2subject. Online learning providers must affirm demonstrate to the commissioner that 48.3online learning courses have equivalent standards or instruction, curriculum, and 48.4assessment requirements as other courses offered to enrolled students. The online learning 48.5provider must also demonstrate expectations for actual teacher contact time or other 48.6student-to-teacher communication. Once an online learning provider is approved under 48.7this paragraph, all of its online learning course offerings are eligible for payment under 48.8this section unless a course is successfully challenged by an enrolling district or the 48.9department under paragraph (b).48.10    (b) An enrolling district may challenge the validity of a course offered by an online 48.11learning provider. The department must review such challenges based on the certification 48.12procedures under paragraph (a). The department may initiate its own review of the validity 48.13of an online learning course offered by an online learning provider.48.14    (c) The department may collect a fee not to exceed $250 for certifying online 48.15learning providers or $50 per course for reviewing a challenge by an enrolling district.48.16    (d) The department must develop, publish, and maintain a list of approved online 48.17learning providers and online learning courses and programs that it has reviewed and 48.18certified.48.19    Sec. 26. Minnesota Statutes 2006, section 124D.10, subdivision 4, is amended to read:48.20    Subd. 4. Formation of school. (a) A sponsor may authorize one or more licensed 48.21teachers under section 
         122A.18, subdivision 1, to operate a charter school subject to 48.22approval by the commissioner. A board must vote on charter school application for 48.23sponsorship no later than 90 days after receiving the application. After 90 days, the 48.24applicant may apply to the commissioner. If a board elects not to sponsor a charter school, 48.25the applicant may appeal the board's decision to the commissioner who may elect to assist 48.26the applicant in finding an eligible sponsor. The school must be organized and operated as 48.27a cooperative under chapter 308A or nonprofit corporation under chapter 317A and the 48.28provisions under the applicable chapter shall apply to the school except as provided in this 48.29section. Notwithstanding sections 
         465.717 and 
         465.719, a school district may create a 48.30corporation for the purpose of creating a charter school.48.31    (b) Before the operators may form and operate a school, the sponsor must file an 48.32affidavit with the commissioner stating its intent to authorize a charter school. The 48.33affidavit must state the terms and conditions under which the sponsor would authorize a 48.34charter school and how the sponsor intends to oversee the fiscal and student performance 48.35of the charter school and to comply with the terms of the written contract between the 49.1sponsor and the charter school board of directors under subdivision 6. The commissioner 49.2must approve or disapprove the sponsor's proposed authorization within 90 days of 49.3receipt of the affidavit. Failure to obtain commissioner approval precludes a sponsor from 49.4authorizing the charter school that was the subject of the affidavit.49.5    (c) The operators authorized to organize and operate a school, before entering into 49.6a contract or other agreement for professional or other services, goods, or facilities, 49.7must incorporate as a cooperative under chapter 308A or as a nonprofit corporation 49.8under chapter 317A and must establish a board of directors composed of at least five 49.9members until a timely election for members of the charter school board of directors is 49.10held according to the school's articles and bylaws. A charter school board of directors 49.11must be composed of at least five members. Any staff members who are employed at the 49.12school, including teachers providing instruction under a contract with a cooperative, and 49.13all parents of children enrolled in the school may participate in the election for members 49.14of the school's board of directors. Licensed teachers employed at the school, including 49.15teachers providing instruction under a contract with a cooperative, must be a majority 49.16of the members of the board of directors before the school completes its third year of 49.17operation, unless the commissioner waives the requirement for a majority of licensed 49.18teachers on the board. Board of director meetings must comply with chapter 13D.49.19    (d) The granting or renewal of a charter by a sponsoring entity must not be 49.20conditioned upon the bargaining unit status of the employees of the school.49.21    (e) A sponsor may authorize the operators of a charter school to expand the 49.22operation of the charter school to additional sites or to add additional grades at the school 49.23beyond those described in the sponsor's application as approved by the commissioner only 49.24after submitting a supplemental application to the commissioner in a form and manner 49.25prescribed by the commissioner. The supplemental application must provide evidence that:49.26    (1) the expansion of the charter school is supported by need and projected enrollment;49.27    (2) the charter school is fiscally sound;49.28    (3) the sponsor supports the expansion; and49.29    (4) the building of the additional site meets all health and safety requirements to 49.30be eligible for lease aid.49.31    (f) The commissioner annually must provide timely financial management training 49.32to newly elected members of a charter school board of directors and ongoing training to 49.33other members of a charter school board of directors. Training must address ways to:49.34    (1) proactively assess opportunities for a charter school to maximize all available 49.35revenue sources;49.36    (2) establish and maintain complete, auditable records for the charter school;50.1    (3) establish proper filing techniques;50.2    (4) document formal actions of the charter school, including meetings of the charter 50.3school board of directors;50.4    (5) properly manage and retain charter school and student records;50.5    (6) comply with state and federal payroll record-keeping requirements; and50.6    (7) address other similar factors that facilitate establishing and maintaining complete 50.7records on the charter school's operations.50.8    Sec. 27. Minnesota Statutes 2006, section 124D.10, subdivision 23a, is amended to 50.9read:50.10    Subd. 23a. Related party lease costs. (a) A charter school is prohibited from 50.11entering a lease of real property with a related party as defined in this subdivision 26, unless 50.12the lessor is a nonprofit corporation under chapter 317A or a cooperative under chapter 50.13308A, and the lease cost is reasonable under section 
         124D.11, subdivision 4, clause (1). 50.14    (b) For purposes of this subdivision section and section 124D.11:50.15    (1) A "related party" is an affiliate or close relative of the other party in question, an 50.16affiliate of a close relative, or a close relative of an affiliate.50.17    (2) "Affiliate" means a person that directly, or indirectly through one or more 50.18intermediaries, controls, or is controlled by, or is under common control with, another 50.19person.50.20    (3) "Close relative" means an individual whose relationship by blood, marriage, or 50.21adoption to another individual is no more remote than first cousin.50.22    (4) "Person" means an individual or entity of any kind.50.23    (5) "Control" includes the terms "controlling," "controlled by," and "under common 50.24control with" and means the possession, direct or indirect, of the power to direct or cause 50.25the direction of the management, operations, or policies of a person, whether through the 50.26ownership of voting securities, by contract, or otherwise.50.27    (c) A lease of real property to be used for a charter school, not excluded in paragraph 50.28(b) (a), must contain the following statement: "This lease is subject to Minnesota Statutes, 50.29section 
         124D.10, subdivision 23a." 50.30    (d) If a charter school enters into as lessee a lease with a related party and the 50.31charter school subsequently closes, the commissioner has the right to recover from the 50.32lessor any lease payments in excess of those that are reasonable under section 
         124D.11, 50.33subdivision 4
         , clause (1). 50.34    Sec. 28. Minnesota Statutes 2006, section 124D.10, subdivision 24, is amended to read:51.1    Subd. 24. Pupil enrollment upon nonrenewal or termination of charter school 51.2contract. If a contract is not renewed or is terminated according to subdivision 23, a 51.3pupil who attended the school, siblings of the pupil, or another pupil who resides in the 51.4same place as the pupil may enroll in the resident district or may submit an application 51.5to a nonresident district according to section 
         124D.03 at any time. Applications and 51.6notices required by section 
         124D.03 must be processed and provided in a prompt manner. 51.7The application and notice deadlines in section 
         124D.03 do not apply under these 51.8circumstances. The closed charter school must transfer the student's educational records 51.9within ten business days of closure to the student's school district of residence where the 51.10records must be retained or transferred under section 120A.22, subdivision 7.51.11    Sec. 29. [124D.645] MULTIRACIAL DIVERSITY.51.12    (a) Notwithstanding other law or rule to the contrary and in order to effectively 51.13meet students' educational needs and foster parents' meaningful participation in their 51.14children's education, a school district may apply to the commissioner for a waiver from 51.15the requirement to maintain racial balance within a district school if the racial imbalance 51.16in that school results from:51.17    (1) the enrollment of protected multiracial students and the proportion of enrolled 51.18multiracial students reflects the proportion of multiracial students who reside in the school 51.19attendance area or who are enrolled in the grade levels served by the district; or51.20    (2) the enrollment of limited English proficiency students in a transition program 51.21that includes an intensive English component.51.22The commissioner must grant the waiver if the district in which the school is located offers 51.23the multiracial students or the limited English proficiency students, as appropriate, the 51.24option of enrolling in another school with the requisite racial balance, and the students' 51.25parents choose not to pursue that option.51.26    (b) This section is effective for the 2006-2007 through 2010-2011 school years or 51.27until amended rules are adopted under Minnesota Rules, chapter 3535, pertaining to racial 51.28diversity, whichever comes first.51.29EFFECTIVE DATE.This section is effective the day following final enactment.51.30    Sec. 30. Minnesota Statutes 2006, section 124D.84, subdivision 1, is amended to read:51.31    Subdivision 1. Awards. The commissioner may award director of the Office 51.32of Higher Education shall establish procedures for the distribution of scholarships to 51.33any Minnesota resident student who is of one-fourth or more Indian ancestry, who has 52.1applied for other existing state and federal scholarship and grant programs, and who, in 52.2the opinion of the commissioner director of the Office of Higher Education, based upon 52.3postsecondary institution recommendations, has the capabilities to benefit from further 52.4education. Scholarships must be for accredited degree programs in accredited Minnesota 52.5colleges or universities or for courses in accredited Minnesota business, technical, or 52.6vocational schools. Scholarships may also be given to students attending Minnesota 52.7colleges that are in candidacy status for obtaining full accreditation, and are eligible for 52.8and receiving federal financial aid programs. Students are also eligible for scholarships 52.9when enrolled as students in Minnesota higher education institutions that have joint 52.10programs with other accredited higher education institutions. Scholarships shall be used 52.11to defray the total cost of education including tuition, incidental fees, books, supplies, 52.12transportation, other related school costs and the cost of board and room and shall be paid 52.13directly to the college or school concerned where the student receives federal financial 52.14aid. The total cost of education includes all tuition and fees for each student enrolling in a 52.15public institution and the portion of tuition and fees for each student enrolling in a private 52.16institution that does not exceed the tuition and fees at a comparable public institution.52.17Each student shall be awarded a scholarship based on the total cost of the student's 52.18education and a federal standardized need analysis after application of federal Pell money, 52.19state grant money, and other scholarships. Depending upon students' unmet needs, the 52.20Minnesota Indian scholarship program may award up to the current federal Pell grant 52.21allowable maximum student award per school year. Applicants are encouraged to apply 52.22for all other sources of financial aid.52.23    When an Indian student satisfactorily completes the work required by a certain 52.24college or school in a school year the student is eligible for additional scholarships, if 52.25additional training is necessary to reach the student's educational and vocational objective. 52.26Scholarships may not be given to any Indian student for more than five years of study at 52.27the undergraduate level and five years at the graduate level. Students may acquire only 52.28one degree per level and one terminal degree.52.29    Sec. 31. Minnesota Statutes 2006, section 127A.095, subdivision 2, is amended to read:52.30    Subd. 2. No Child Left Behind review. (a) The legislature intends to require 52.31the Department of Education to conduct a comprehensive review of the consolidated 52.32state plan the state submitted to the federal Department of Education to implement the 52.33No Child Left Behind Act. The Minnesota Department of Education shall seek waivers 52.34under paragraph (b). If the Department of Education is unable to obtain waivers under 53.1paragraph (b), it should recommend in its report under paragraph (b) whether the state 53.2should opt out of the No Child Left Behind Act.53.3    (b) The commissioner, by January 15, 2007 2008, shall report to the house of 53.4representatives and senate committees having jurisdiction over kindergarten through grade 53.512 education policy and finance whether the department has received approval from 53.6the federal Department of Education to:53.7    (1) allow the state to develop a plan for determining adequate yearly progress that 53.8uses multiple measures of student achievement that include value-added measurement of 53.9student achievement in addition to standardized test results to evaluate school and student 53.10performance participate in the growth model pilot program;53.11    (2) exclude from sanctions a school that is classified as not having made adequate 53.12yearly progress due solely to different subgroups testing below proficient levels for at 53.13least two consecutive years;53.14    (3) allow the state to average three years of data for the purposes of identifying a 53.15school for improvement;53.16    (4) allow the state to use No Child Left Behind Act money to provide supplemental 53.17education services only in the academic subject area that causes a school to miss adequate 53.18yearly progress;53.19    (5) exclude from sanctions schools that have not made adequate yearly progress due 53.20solely to a subgroup of students with disabilities not testing at a proficient level;53.21    (6)(3) identify a school as not making adequate yearly progress only after the school 53.22has missed the adequate yearly progress targets in the same subject and subgroup for two 53.23consecutive years;53.24    (7) limit the score of a student within multiple subgroups to the smallest subgroup in 53.25which that student is included when calculating adequate yearly progress;53.26    (8)(4) determine when to hold schools accountable for including a student with 53.27limited English proficiency in adequate yearly progress calculations; and53.28    (9) use a fully computer-adaptive test for purposes of compliance with the No Child 53.29Left Behind Act53.30    (5) allow a district not making adequate yearly progress to offer supplemental 53.31educational services as an option before offering school choice;53.32    (6) allow a district not making adequate yearly progress to also be the supplemental 53.33educational services provider;53.34    (7) allow the state to maintain a subgroup size to 40 for the purposes of calculating 53.35adequate yearly progress for subgroups of students with limited English proficiency and 53.36subgroups of students with disabilities; and54.1    (8) create flexibility to enable the state to define and identify highly qualified 54.2teachers.54.3    Sec. 32. Laws 2005, First Special Session chapter 5, article 2, section 81, as amended 54.4by Laws 2006, chapter 263, article 2, section 20, is amended to read:54.5    Sec. 81. BOARD OF SCHOOL ADMINISTRATORS; RULEMAKING 54.6AUTHORITY.54.7    (a) On or before June 30, 2007 2008, the Board of School Administrators may adopt 54.8rules to reflect the changes in duties, responsibilities, and roles of school administrators 54.9under sections 
         121A.035, 
         121A.037 and 
         299F.30, and to make technical revisions and 54.10clarifications to Minnesota Rules, chapter 3512. 54.11    (b) Any rules the board adopts under the authority in paragraph (a) must retain the 54.12requirement in effect in calendar year 2006 governing classroom teaching experience for 54.13licensure as a principal.54.14EFFECTIVE DATE.This section is effective the day following final enactment.54.15    Sec. 33. RULEMAKING REQUIRED.54.16    (a) Notwithstanding the time limit in Minnesota Statutes, section 14.125, the Board 54.17of Teaching must adopt the rules it was mandated to adopt under Laws 2003, chapter 129, 54.18article 1, section 10. The board must publish a notice of intent to adopt rules or a notice of 54.19hearing for rules subject to this section before January 1, 2008. 54.20    (b) The Board of Teaching may charge fees to issue new credentials and to renew 54.21credentials for paraprofessionals issued credentials under the rules adopted under this 54.22section.54.23EFFECTIVE DATE.This section is effective the day following final enactment.54.24    Sec. 34. RULEMAKING AUTHORIZED; SUPPLEMENTAL EDUCATION 54.25SERVICE PROVIDERS.54.26    The commissioner of education must amend Minnesota Rules, part 3512.5400, 54.27consistent with the requirements under Minnesota Statutes, chapter 14, to include 54.28specifications that provide the basis for withdrawing Department of Education approval 54.29from supplemental education service providers that fail to increase students' academic 54.30proficiency for two consecutive school years. The amended rule also must clearly indicate:55.1    (1) how the Department of Education will distinguish the effect of supplemental 55.2education from the effect of regular school instruction on students' academic performance; 55.3and55.4    (2) whether the Department of Education will assess effectiveness of the 55.5supplemental education service providers using an absolute measure, such as percent of 55.6"proficient" students or measure individual students' growth toward proficiency over time.55.7EFFECTIVE DATE.This section is effective the day following final enactment.55.8    Sec. 35. RULEMAKING AUTHORITY.55.9    The commissioner of education shall adopt rules for implementing and administering 55.10the graduation-required assessment for diploma (GRAD) in reading and mathematics 55.11and in writing, consistent with Minnesota Statutes, section 120B.30, subdivision 1, and 55.12for public review of the GRAD test. The rules must specify the GRAD requirements 55.13that apply to students in unique circumstances including dual enrolled students, English 55.14language learners, foreign exchange students, home school students, open enrollment 55.15students, Minnesota postsecondary enrollment options students, shared-time students, 55.16transfer students from other states, and district-placed students and students attending 55.17school under a tuition agreement. The rules must establish the criteria for determining 55.18individualized GRAD passing scores for students with an individual education plan or 55.19a Section 504 plan and for using an alternative assessment when a student's individual 55.20education plan team decides to replace the GRAD test.55.21EFFECTIVE DATE.This section is effective the day following final enactment.55.22    Sec. 36. GRANT PROGRAM TO PROMOTE PROFESSIONAL TEACHING 55.23STANDARDS.55.24    Subdivision 1.Establishment.A grant program to promote professional teaching 55.25standards through the National Board for Professional Teaching Standards is established to 55.26provide teachers with the opportunity to receive National Board for Professional Teaching 55.27Standards certification and to reward teachers who have already received this certification.55.28    Subd. 2.Eligibility.An applicant for a grant must:55.29    (1) be a licensed teacher employed in a Minnesota public school;55.30    (2) have a minimum of five school years' classroom teaching experience; and 55.31    (3) demonstrate acceptance by the National Board for Professional Teaching 55.32Standards as a candidate for board certification or as a recipient of board certification.56.1    Subd. 3.Application process.To obtain a grant to participate in the National Board 56.2for Professional Teaching Standards certification process or to receive a reward for already 56.3completing the board certification process, a teacher must submit an application to the 56.4commissioner of education in the form and manner established by the commissioner. The 56.5commissioner shall consult with the Board of Teaching when reviewing the applications. 56.6The commissioner shall also provide program support to assist applicants during the 56.7national board certification process.56.8    Subd. 4.Grant awards; proceeds.(a) The commissioner may award grants of 56.9$1,000 to eligible teachers accepted as candidates for the National Board for Professional 56.10Teaching Standards certification or for national board certification renewal for partial 56.11payment of the teacher's candidate application fee.56.12    (b) The commissioner shall award grants of $3,000 to all eligible teacher applicants 56.13who hold certification from the National Board for Professional Teaching Standards and 56.14$2,000 for renewal of their national board certification.56.15    (c) The commissioner shall also award grants to eligible teachers who have received 56.16National Board for Professional Teaching Standards certification within one year prior to 56.17the date of the teacher's application for a grant to use for educational purposes, including 56.18purchasing instructional materials, equipment, or supplies, and pursuing professional 56.19development opportunities. The commissioner, under this paragraph, may award grants not 56.20to exceed $1,000 after consulting with interested stakeholders regarding the grant amount. 56.21    Sec. 37. WORLD LANGUAGES PILOT PROGRAM GRANTS.56.22    (a) A pilot program awarding five world languages grants to interested and qualified 56.23school sites and school districts is established for fiscal year 2009 to develop and 56.24implement sustainable, high-quality model world languages programs and to enhance 56.25existing world languages programs at various grade levels for students in kindergarten 56.26through grade 12. Program participants must simultaneously support both non-English 56.27language learners in maintaining their native language while mastering English and native 56.28English speakers in learning other languages. 56.29    (b) Interested school sites and school districts must apply to the commissioner of 56.30education in the form and manner the commissioner determines. The application must 56.31indicate whether the applicant intends to develop a new world languages program or 56.32expand an existing world languages program and whether the applicant intends to offer 56.33more intensive programs or programs that are readily accessible to larger numbers of 56.34students. Applicants must agree to disseminate information about their programs to 56.35interested school sites and school districts.57.1    (c) The commissioner must award grants to qualified applicants that satisfy the 57.2requirements in paragraphs (a) and (b). To the extent there are qualified applicants, the 57.3commissioner must award grants to qualified applicants on an equitable geographic 57.4basis to the extent feasible. The commissioner must award three grants to kindergarten 57.5through grade 8 sites, one grant to a qualified site interested in developing or enhancing a 57.6sustainable Mandarin Chinese program, and one grant to an indigenous American Indian 57.7world languages program. Grantees must expend the grant consistent with the content of 57.8their application and this section.57.9    (d) The commissioner shall provide for an evaluation of the grantees to identify 57.10exemplary model world languages programs and the staff development needs of world 57.11languages teachers and report the findings of the evaluation to the education policy and 57.12finance committees of the legislature by February 15, 2010.57.13EFFECTIVE DATE.This section is effective for the 2007-2008 school year.57.14    Sec. 38. BILINGUAL AND MULTILINGUAL CERTIFICATES; DEPARTMENT 57.15OF EDUCATION.57.16    The Department of Education, in consultation with interested stakeholders, must 57.17develop and recommend to the legislature by February 15, 2008, the standards and process 57.18for awarding bilingual and multilingual certificates to those kindergarten through grade 57.1912 students who demonstrate and maintain a requisite level of proficiency in multiple 57.20languages.57.21EFFECTIVE DATE.This section is effective the day following final enactment.57.22    Sec. 39. SCHOOL PERFORMANCE REPORT CARDS; ADVISORY GROUP 57.23RECOMMENDATIONS.57.24    (a) To sustain equity and excellence in education, the Independent Office of 57.25Educational Accountability under Minnesota Statutes, section 120B.31, subdivision 3, 57.26must convene and facilitate an advisory group of curriculum and measurement experts 57.27to consider and recommend how to structure school performance data and school 57.28performance report cards under Minnesota Statutes, section 120B.36, subdivision 1, to 57.29fully, fairly, and accurately report student achievement and emphasize school excellence 57.30under Minnesota's system of educational accountability and public reporting. The advisory 57.31group at least must consider and recommend how to: evaluate student achievement using 57.32multiple measures of growth that take into account student demographic characteristics, 57.33consistent with Minnesota Statutes, section 120B.31, subdivision 4; and identify 58.1outstanding schools based on student achievement and achievement growth and using 58.2multiple performance measures that are objective and consistent with the highest standards 58.3in the field of educational measurements and accountability. The advisory group, at its 58.4discretion, may also consider and make recommendations on other related statewide 58.5accountability and reporting matters.58.6    (b) Advisory group members under paragraph (a) include: two qualified experts in 58.7measurement in education selected by the State Council on Measurement in Education; 58.8one qualified expert in elementary curriculum and one qualified expert in secondary 58.9curriculum selected by the Minnesota Association for Supervision and Curriculum 58.10Development; three regionally diverse school district research and evaluation directors 58.11selected by the Minnesota Assessment Group; one school superintendent selected by the 58.12Minnesota Association of School Administrators; one University of Minnesota faculty 58.13selected by the dean of the College of Education and Human Development; one licensed 58.14teacher selected by Education Minnesota; two parents selected by the Minnesota Parent 58.15Teachers Association with expertise in measurement in education; and the director of 58.16evaluation and testing at the Minnesota Department of Education. Advisory group 58.17members' terms and other advisory group matters are subject to Minnesota Statutes, 58.18section 15.059, subdivision 6. The Independent Office of Educational Accountability 58.19must present the advisory group's recommendations under paragraph (a) to the education 58.20policy and finance committees of the legislature by February 15, 2008. The advisory 58.21group expires February 16, 2008.58.22EFFECTIVE DATE.This section is effective the day following final enactment.58.23    Sec. 40. ADVISORY TASK FORCE ON MINNESOTA AMERICAN INDIAN 58.24TRIBES AND COMMUNITIES AND K-12 STANDARDS-BASED REFORM.58.25    Subdivision 1.Duties. An advisory task force on Minnesota American Indian tribes 58.26and communities and K-12 standards-based reform is established to examine the impact of 58.27state and federal standards-based reform on Minnesota's K-12 students, with particular 58.28attention to the impacts on American Indian students enrolled in Minnesota schools. 58.29The task force, in consultation with American Indian educators, parents, and others who 58.30advocate for American Indian children, must determine if:58.31    (1) state education standards and assessments are appropriate for American Indian 58.32students;58.33    (2) American Indian students are fairly compared; 58.34    (3) American Indian students receive the assistance they need to achieve the state 58.35standards; and 59.1    (4) schools receive financial and technical assistance sufficient to meet the 59.2educational needs of American Indian students.59.3    Subd. 2.Membership.(a) The commissioner of education shall appoint 59.4representatives from the following organizations and agencies to the task force:59.5    (1) Department of Education staff experienced in working with American Indian 59.6students and programs;59.7    (2) Minnesota American Indian tribes and communities;59.8    (3) the Minnesota School Board Association;59.9    (4) school administrators;59.10    (5) Education Minnesota;59.11    (6) the state Board of Teaching;59.12    (7) the Minnesota Council on Indian Affairs; 59.13    (8) postsecondary faculty who serve as instructors in teacher preparation programs; 59.14and59.15    (9) local community service providers who work with Minnesota American Indian 59.16tribes and communities.59.17    (b) After the task force has been convened, the commissioner of education may 59.18appoint additional public members recommended by members of the task force.59.19    Subd. 3.Organization; compensation.(a) The commissioner shall complete 59.20appointments to the task force, under subdivision 2, paragraph (a), by September 1, 2007. 59.21The commissioner of education or the commissioner's designee shall convene the first 59.22meeting of the task force within 30 days after the appointments are completed. The task 59.23force shall select a chair from its membership at the first meeting.59.24    (b) Vacancies, renewal, and compensation of members are as provided in Minnesota 59.25Statutes, section 15.059, subject to the availability of appropriations.59.26    (c) The commissioner of education must provide the task force with administrative 59.27and clerical support.59.28    Subd. 4.Recommendations. By February 15, 2008, the task force must report 59.29recommendations and suggest implementing legislation to the legislative committees and 59.30divisions with jurisdiction over education policy and finance regarding the changes, if 59.31any, to the state's educational performance standards, content requirements, assessments 59.32measures, and teacher preparation programs that will enable Minnesota schools to most 59.33effectively meet the educational needs of American Indian students consistent with 59.34Minnesota Statutes, sections 124D.71 to 124D.82.59.35    Subd. 5.Expiration. This section expires the day following the submission of the 59.36report required by subdivision 4.60.1EFFECTIVE DATE.This section is effective the day following final enactment.60.2    Sec. 41. AMERICAN INDIAN SCHOLARSHIP.60.3    Administration of the American Indian scholarship program under Minnesota 60.4Statutes, section 124D.84, is transferred from the Department of Education to the 60.5Minnesota Office of Higher Education. The director of the Minnesota Office of Higher 60.6Education must contract with at least one knowledgeable person residing in or near the 60.7city of Bemidji to assist students with the scholarships under Minnesota Statutes, section 60.8124D.84, subdivision 1, and with other information about financial aid for which the 60.9students may be eligible.60.10    Sec. 42. WORLD LANGUAGES RESOURCES.60.11    (a) The commissioner of education shall employ a full-time state coordinator for 60.12world languages education within the department by July 1, 2007. The commissioner shall 60.13seek advice from the quality teaching network before assigning or hiring the coordinator. 60.14The coordinator, at a minimum, shall:60.15    (1) assist charter schools and school districts in planning to develop or enhance their 60.16capacity to offer world languages courses and programs;60.17    (2) collaborate with Minnesota world languages professionals and charter schools 60.18and school districts and continuously seek their advice in developing all aspects of world 60.19languages programs; 60.20    (3) survey Minnesota charter schools and school districts to (i) determine the types 60.21of existing world languages programs including, among others, those that use information 60.22technology to provide high-quality world languages instruction, (ii) identify exemplary 60.23model world languages programs, and (iii) identify and address staff development needs of 60.24current world languages teachers, preservice teachers, and teacher preparation programs;60.25    (4) identify successful world languages programs in other states; 60.26    (5) consult with interested stakeholders to prepare a report for the commissioner of 60.27education to submit by February 15, 2008, to the education policy and finance committees 60.28of the legislature assessing the feasibility and structure of a statewide world languages 60.29graduation requirement under Minnesota Statutes, section 120B.021, subdivision 1; and 60.30    (6) beginning February 1, 2008, and until February 1, 2012, report annually to the 60.31education policy and finance committees of the legislature on the status of world languages 60.32in Minnesota and the programmatic needs identified by charter school and school district 60.33surveys, and make recommendations on how to address the identified needs.61.1    (b) After carefully examining existing world languages assessments, including 61.2among other considerations the ease or difficulty with which the assessments may be 61.3adapted to world languages not currently assessed, the commissioner, by July 1, 2009, 61.4shall recommend an assessment tool for charter schools and school districts to use in 61.5measuring student progress in acquiring proficiency in world languages.61.6    (c) Beginning July 1, 2008, the department shall assist world languages teachers 61.7and other school staff in developing and implementing world languages programs 61.8that acknowledge and reinforce the language proficiency and cultural awareness that 61.9non-English language speakers already possess, and encourage students' proficiency in 61.10multiple world languages. Programs under this paragraph must encompass indigenous 61.11American Indian languages and cultures, among other world languages and cultures. The 61.12department shall consult with postsecondary institutions in developing related professional 61.13development opportunities. 61.14    (d) The commissioner, upon request, must evaluate the plans of charter schools and 61.15school districts to develop or enhance their capacity to offer world languages courses 61.16and programs and continue to offer technical assistance to districts in developing or 61.17enhancing world languages programs. The department shall assist districts in monitoring 61.18local assessment results.61.19EFFECTIVE DATE.This section is effective the day following final enactment.61.20    Sec. 43. APPROPRIATIONS.61.21    Subdivision 1.Minnesota Office of Higher Education.The sums indicated in 61.22this section are appropriated from the general fund to the Minnesota Office of Higher 61.23Education for the fiscal years designated.61.24    Subd. 2.American Indian scholarships.For American Indian scholarships under 61.25Minnesota Statutes, section 124D.84:

61.26$1,950,000.....200861.27$1,950,000.....2009

61.28    Of this appropriation, $75,000 each year is for administration under section 41.61.29    Sec. 44. APPROPRIATIONS.61.30    Subdivision 1.Board of Regents of the University of Minnesota.The sums 61.31indicated in this section are appropriated from the general fund to the Board of Regents of 61.32the University of Minnesota for the fiscal years designated.62.1    Subd. 2.Independent Office of Educational Accountability.For the Independent 62.2Office of Educational Accountability under Minnesota Statutes, section 120B.31, 62.3subdivision 3:

62.4$200,000.....200862.5$200,000.....2009

62.6    This is a onetime appropriation.62.7    Sec. 45. APPROPRIATIONS.62.8    Subdivision 1.Department.The sums indicated in this section are appropriated 62.9from the general fund to the Department of Education for the fiscal years designated.62.10    Subd. 2.Charter school building lease aid.For building lease aid under Minnesota 62.11Statutes, section 124D.11, subdivision 4: 

62.12$31,875,000.....200862.13$36,193,000.....2009

62.14    The 2008 appropriation includes $2,814,000 for 2007 and $29,061,000 for 2008.62.15    The 2009 appropriation includes $3,229,000 for 2008 and $32,964,000 for 2009.62.16    Subd. 3.Charter school startup cost aid.For charter school startup cost aid 62.17under Minnesota Statutes, section 124D.11:

62.18$1,896,000.....200862.19$2,161,000.....2009

62.20    The 2008 appropriation includes $241,000 for 2007 and $1,655,000 for 2008.62.21    The 2009 appropriation includes $183,000 for 2008 and $1,978,000 for 2009.62.22    Subd. 4.Integration aid.For integration aid under Minnesota Statutes, section 62.23124D.86, subdivision 5:

62.24$61,769,000.....200862.25$61,000,000.....2009

62.26    The 2008 appropriation includes $5,824,000 for 2007 and $55,945,000 for 2008.62.27    The 2009 appropriation includes $6,216,000 for 2008 and $54,784,000 for 2009.62.28    Subd. 5.Magnet school program grants.For magnet school program grants:

62.29$750,000.....200862.30$750,000.....2009

62.31    These amounts may be used for magnet school programs under Minnesota Statutes, 62.32section 124D.871.63.1    Up to $100,000 each year is available for site-based decision-making grant proposals 63.2that meet the goals outlined in section 124D.871 under Minnesota Statutes, section 63.3123B.04, subdivision 2, paragraph (g). 63.4    Any balance in the first year does not cancel but is available in the second year. 63.5    Subd. 6.Interdistrict desegregation or integration transportation grants.For 63.6interdistrict desegregation or integration transportation grants under Minnesota Statutes, 63.7section 124D.87:

63.8$9,639,000.....200863.9$11,567,000.....2009

63.10    Subd. 7.Success for the future.For American Indian success for the future grants 63.11under Minnesota Statutes, section 124D.81:

63.12$2,137,000.....200863.13$2,137,000.....2009

63.14    The 2008 appropriation includes $213,000 for 2007 and $1,924,000 for 2008.63.15    The 2009 appropriation includes $213,000 for 2008 and $1,924,000 for 2009.63.16    Subd. 8.American Indian teacher preparation grants.For joint grants to assist 63.17American Indians to become teachers under Minnesota Statutes, section 122A.63:

63.18$190,000.....200863.19$190,000.....2009

63.20    Subd. 9.Tribal contract schools.For tribal contract school aid under Minnesota 63.21Statutes, section 124D.83:

63.22$ 2,238,000.....200863.23$ 2,409,000.....2009

63.24    The 2008 appropriation includes $204,000 for 2007 and $2,034,000 for 2008.63.25    The 2009 appropriation includes $226,000 for 2008 and $2,183,000 for 2009.63.26    Subd. 10.Early childhood programs at tribal schools.For early childhood 63.27family education programs at tribal contract schools under Minnesota Statutes, section 63.28124D.83, subdivision 4:

63.29$68,000.....200863.30$68,000.....2009

63.31    Subd. 11.Statewide testing and reporting system.For the statewide testing and 63.32reporting system under Minnesota Statutes, section 120B.30:

64.1$10,150,000.....200864.2$10,150,000.....2009

64.3    Any testing contracts awarded by the commissioner using appropriations in this 64.4subdivision must include as part of that testing contract a method to vertically link testing 64.5questions across grade levels for the purposes of working towards a statewide growth 64.6model.64.7    $1,150,000 each year is for the value-added index assessment model.64.8    Any balance in the first year does not cancel but is available in the second year.64.9    Subd. 12.Examination fees; teacher training and support programs.(a) For 64.10students' advanced placement and international baccalaureate examination fees under 64.11Minnesota Statutes, section 120B.13, subdivision 3, and the training and related costs 64.12for teachers and other interested educators under Minnesota Statutes, section 120B.13, 64.13subdivision 1:

64.14$4,500,000.....200864.15$4,500,000.....2009

64.16    (b) The advanced placement program shall receive 75 percent of the appropriation 64.17each year and the international baccalaureate program shall receive 25 percent of the 64.18appropriation each year. The department, in consultation with representatives of the 64.19advanced placement and international baccalaureate programs selected by the Advanced 64.20Placement Advisory Council and IBMN, respectively, shall determine the amounts of 64.21the expenditures each year for examination fees and training and support programs for 64.22each program.64.23    (c) Notwithstanding Minnesota Statutes, section 120B.13, subdivision 1, at least 64.24$500,000 each year is for teachers to attend subject matter summer training programs 64.25and follow-up support workshops approved by the advanced placement or international 64.26baccalaureate programs. The amount of the subsidy for each teacher attending an 64.27advanced placement or international baccalaureate summer training program or workshop 64.28shall be the same. The commissioner shall determine the payment process and the amount 64.29of the subsidy.64.30    (d) The commissioner shall pay all examination fees for all students of low-income 64.31families under Minnesota Statutes, section 120B.13, subdivision 3, and to the extent 64.32of available appropriations shall also pay examination fees for students sitting for an 64.33advanced placement examination, international baccalaureate examination, or both.64.34    Any balance in the first year does not cancel but is available in the second year.65.1    Subd. 13.Preadvanced placement, advanced placement, international 65.2baccalaureate, and concurrent enrollment programs.For preadvanced placement, 65.3advanced placement, international baccalaureate, and concurrent enrollment programs 65.4under Minnesota Statutes, sections 120B.132 and 124D.091:

65.5$2,000,000.....200865.6$2,000,000.....2009

65.7    Of this amount,  $700,000 each year is for concurrent enrollment program aid 65.8under Minnesota Statutes, section 124D.091. If the appropriation is insufficient, the 65.9commissioner must proportionately reduce the aid payment to each district.65.10    Subd. 14.Collaborative urban educator.For collaborative urban educator grants 65.11under Minnesota Statutes, section 122A.641:

65.12$528,000.....200865.13$528,000.....2009

65.14    $210,000 each year is for the Southeast Asian teacher program at Concordia 65.15University, St. Paul; $159,000 each year is for the collaborative urban educator program at 65.16the University of St. Thomas; and $159,000 each year is for the Center for Excellence in 65.17Urban Teaching at Hamline University. Grant recipients must collaborate with urban and 65.18nonurban school districts.65.19    Any balance in the first year does not cancel but is available in the second year.65.20    Subd. 15.Youth works program.For funding youth works programs under 65.21Minnesota Statutes, sections 124D.37 to 124D.45:

65.22$900,000.....200865.23$900,000.....2009

65.24    A grantee organization may provide health and child care coverage to the dependents 65.25of each participant enrolled in a full-time youth works program to the extent the coverage 65.26is not otherwise available.65.27    Subd. 16.Early childhood literacy programs.For early childhood literacy 65.28programs under Minnesota Statutes, section 119A.50, subdivision 3:

65.29$1,000,000.....200865.30$1,000,000.....2009

65.31    $500,000 each year is for leveraging federal and private funding to support 65.32AmeriCorps members serving in the Minnesota Reading Corps program established by 65.33Serve Minnesota, including costs associated with the training and teaching of early literacy 66.1skills to children age three to grade 3 and the evaluation of the impact of the program 66.2under Minnesota Statutes, sections 124D.38, subdivision 2, and 124D.42, subdivision 6.66.3    $500,000 each year is for words work grants for early childhood literacy allocated by 66.4the commissioner under Minnesota Statutes, section 119A.50, subdivision 3, paragraph (a).66.5    Any balance in the first year does not cancel but is available in the second year.66.6    Subd. 17.St. Croix River Education District.For a grant to the St. Croix River 66.7Education District:

66.8$500,000.....200866.9$500,000.....2009

66.10    These funds must be used to:66.11    (1) deliver standardized research-based professional development in 66.12problem-solving, including response to intervention, scientifically based reading 66.13instruction, and standards-aligned instruction and assessment;66.14    (2) provide coaching to targeted districts throughout the state;66.15    (3) deliver large scale training throughout the state;66.16    (4) provide ongoing technical assistance to schools;66.17    (5) assist with implementing professional development content into higher education 66.18instructional curricula; and66.19    (6) evaluate the effectiveness of project activities.66.20    This is a onetime appropriation.66.21    Subd. 18.Student organizations.For student organizations:

66.22$725,000.....200866.23$725,000.....2009

66.24    $40,000 each year is for student organizations serving health occupations.66.25    $38,000 each year is for student organizations serving service occupations.66.26    $88,000 each year is for student organizations serving trade and industry occupations.66.27    $84,000 each year is for student organizations serving business occupations.66.28    $131,000 each year is for student organizations serving agriculture occupations.66.29    $125,000 each year is for student organizations serving family and consumer science 66.30occupations.66.31    $95,000 each year is for student organizations serving marketing occupations.66.32    Any balance in the first year does not cancel but is available in the second year.67.1    Subd. 19.Educational Planning and Assessment System (EPAS) program.67.2    For the Educational Planning and Assessment System (EPAS) program under Minnesota 67.3Statutes, section 120B.128:

67.4$829,000.....200867.5$829,000.....2009

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

67.9$1,650,000.....200867.10$1,650,000.....2009

67.11    Any balance in the first year does not cancel but is available in the second year.67.12    Subd. 21.World Languages grants.For World Languages grants:

67.13$250,000.....200867.14$250,000.....2009

67.15    Any balance in the first year does not cancel but is available in the second year. 67.16This is a onetime appropriation.67.17    Subd. 22.Alternative teacher compensation aid.For alternative teacher 67.18compensation aid under Minnesota Statutes, section 122A.415, subdivision 6:

67.19$39,164,000.....2009

67.20    The 2009 appropriation includes $0 for fiscal year 2008 and $39,164,000 for fiscal 67.21year 2009.67.22    Subd. 23.National Board for Professional Teaching Standards.(a) For 67.23professional teacher licensure:

67.24$250,000.....200867.25$250,000.....2009

67.26    (b) $63,000 of this amount is for grants of $1,000 each to eligible teachers accepted 67.27as candidates for National Board for Professional Teaching Standards certification 67.28according to Minnesota Statutes, section 122A.73, subdivision 4, paragraph (a). The grant 67.29award shall be made to the national board.67.30    (c) $125,000 of this amount is for grants of $2,000 each to eligible teachers 67.31according to Minnesota Statutes, section 122A.73, subdivision 4, paragraph (b). 68.1    (d) $62,000 of this amount is for grants of up to $1,000 each to eligible teachers who 68.2have received National Board for Professional Teaching Standards certification according 68.3to Minnesota Statutes, section 122A.73, subdivision 4, paragraph (c).68.4    (e) Any balance in the first year does not cancel but is available in the second year.68.5    (f) This is a onetime appropriation.68.6    Subd. 24.Mathematics and science; teacher centers.For teacher centers for 68.7mathematics and science teacher development:

68.8$1,500,000.....200868.9$ 1,500,000.....2009

68.10    Any balance in the first year does not cancel but is available in the second year.68.11    This is a onetime appropriation.68.12    Subd. 25.First Grade Preparedness.For first grade preparedness grants under 68.13Minnesota Statutes, section 124D.081:

68.14$7,250,000.....200868.15$7,250,000.....2009

68.16    This is a onetime appropriation.68.17    Sec. 46. REVISOR'S INSTRUCTION.68.18    (a) The revisor of statutes shall renumber Minnesota Statutes, section 124D.84 68.19to section 136A.126, correct cross-references, and make other necessary corrections to 68.20implement section 41.68.21    (b) In Minnesota Statutes, the revisor of statutes shall codify Minnesota Statutes, 68.22section 124D.10, subdivision 23a, paragraph (b), as Minnesota Statutes, section 124D.10, 68.23subdivision 26.68.24    Sec. 47. REPEALER.68.25Minnesota Statutes 2006, sections 120B.233; 121A.23; and 124D.62, are repealed.68.26ARTICLE 368.27SPECIAL PROGRAMS68.28    Section 1. Minnesota Statutes 2006, section 123B.92, subdivision 1, is amended to read:68.29    Subdivision 1. Definitions. For purposes of this section and section 
         125A.76, the 68.30terms defined in this subdivision have the meanings given to them.68.31    (a) "Actual expenditure per pupil transported in the regular and excess transportation 68.32categories" means the quotient obtained by dividing:69.1    (1) the sum of:69.2    (i) all expenditures for transportation in the regular category, as defined in paragraph 69.3(b), clause (1), and the excess category, as defined in paragraph (b), clause (2), plus69.4    (ii) an amount equal to one year's depreciation on the district's school bus fleet 69.5and mobile units computed on a straight line basis at the rate of 15 percent per year for 69.6districts operating a program under section 
         124D.128 for grades 1 to 12 for all students in 69.7the district and 12-1/2 percent per year for other districts of the cost of the fleet, plus69.8    (iii) an amount equal to one year's depreciation on the district's type three school 69.9buses, as defined in section 
         169.01, subdivision 6, clause (5), which must be used a 69.10majority of the time for pupil transportation purposes, computed on a straight line basis at 69.11the rate of 20 percent per year of the cost of the type three school buses by:69.12    (2) the number of pupils eligible for transportation in the regular category, as defined 69.13in paragraph (b), clause (1), and the excess category, as defined in paragraph (b), clause (2).69.14    (b) "Transportation category" means a category of transportation service provided to 69.15pupils as follows:69.16    (1) Regular transportation is:69.17    (i) transportation to and from school during the regular school year for resident 69.18elementary pupils residing one mile or more from the public or nonpublic school they 69.19attend, and resident secondary pupils residing two miles or more from the public 69.20or nonpublic school they attend, excluding desegregation transportation and noon 69.21kindergarten transportation; but with respect to transportation of pupils to and from 69.22nonpublic schools, only to the extent permitted by sections 
         123B.84 to 
         123B.87;69.23    (ii) transportation of resident pupils to and from language immersion programs;69.24    (iii) transportation of a pupil who is a custodial parent and that pupil's child between 69.25the pupil's home and the child care provider and between the provider and the school, if 69.26the home and provider are within the attendance area of the school;69.27    (iv) transportation to and from or board and lodging in another district, of resident 69.28pupils of a district without a secondary school; and69.29    (v) transportation to and from school during the regular school year required under 69.30subdivision 3 for nonresident elementary pupils when the distance from the attendance 69.31area border to the public school is one mile or more, and for nonresident secondary pupils 69.32when the distance from the attendance area border to the public school is two miles or 69.33more, excluding desegregation transportation and noon kindergarten transportation.69.34    For the purposes of this paragraph, a district may designate a licensed day care 69.35facility, school day care facility, respite care facility, the residence of a relative, or the 69.36residence of a person chosen by the pupil's parent or guardian as the home of a pupil for 70.1part or all of the day, if requested by the pupil's parent or guardian, and if that facility or 70.2residence is within the attendance area of the school the pupil attends.70.3    (2) Excess transportation is:70.4    (i) transportation to and from school during the regular school year for resident 70.5secondary pupils residing at least one mile but less than two miles from the public or 70.6nonpublic school they attend, and transportation to and from school for resident pupils 70.7residing less than one mile from school who are transported because of extraordinary 70.8traffic, drug, or crime hazards; and70.9    (ii) transportation to and from school during the regular school year required under 70.10subdivision 3 for nonresident secondary pupils when the distance from the attendance area 70.11border to the school is at least one mile but less than two miles from the public school 70.12they attend, and for nonresident pupils when the distance from the attendance area border 70.13to the school is less than one mile from the school and who are transported because of 70.14extraordinary traffic, drug, or crime hazards.70.15    (3) Desegregation transportation is transportation within and outside of the district 70.16during the regular school year of pupils to and from schools located outside their normal 70.17attendance areas under a plan for desegregation mandated by the commissioner or under 70.18court order.70.19    (4) "Transportation services for pupils with disabilities" is:70.20    (i) transportation of pupils with disabilities who cannot be transported on a regular 70.21school bus between home or a respite care facility and school;70.22    (ii) necessary transportation of pupils with disabilities from home or from school to 70.23other buildings, including centers such as developmental achievement centers, hospitals, 70.24and treatment centers where special instruction or services required by sections 
         125A.0370.25to 
         125A.24, 
         125A.26 to 
         125A.48, and 
         125A.65 are provided, within or outside the district 70.26where services are provided;70.27    (iii) necessary transportation for resident pupils with disabilities required by sections 70.28125A.12
         , and 
         125A.26 to 
         125A.48;70.29    (iv) board and lodging for pupils with disabilities in a district maintaining special 70.30classes;70.31    (v) transportation from one educational facility to another within the district for 70.32resident pupils enrolled on a shared-time basis in educational programs, and necessary 70.33transportation required by sections 
         125A.18, and 
         125A.26 to 
         125A.48, for resident pupils 70.34with disabilities who are provided special instruction and services on a shared-time basis 70.35or if resident pupils are not transported, the costs of necessary travel between public 71.1and private schools or neutral instructional sites by essential personnel employed by the 71.2district's program for children with a disability;71.3    (vi) transportation for resident pupils with disabilities to and from board and lodging 71.4facilities when the pupil is boarded and lodged for educational purposes; and71.5    (vii) services described in clauses (i) to (vi), when provided for pupils with 71.6disabilities in conjunction with a summer instructional program that relates to the pupil's 71.7individual education plan or in conjunction with a learning year program established 71.8under section 
         124D.128.71.9    For purposes of computing special education base revenue initial aid under section 71.10125A.76, subdivision 2
         , the cost of providing transportation for children with disabilities 71.11includes (A) the additional cost of transporting a homeless student from a temporary 71.12nonshelter home in another district to the school of origin, or a formerly homeless student 71.13from a permanent home in another district to the school of origin but only through the end 71.14of the academic year; and (B) depreciation on district-owned school buses purchased after 71.15July 1, 2005, and used primarily for transportation of pupils with disabilities, calculated 71.16according to paragraph (a), clauses (ii) and (iii). Depreciation costs included in the 71.17disabled transportation category must be excluded in calculating the actual expenditure 71.18per pupil transported in the regular and excess transportation categories according to 71.19paragraph (a).71.20    (5) "Nonpublic nonregular transportation" is:71.21    (i) transportation from one educational facility to another within the district for 71.22resident pupils enrolled on a shared-time basis in educational programs, excluding 71.23transportation for nonpublic pupils with disabilities under clause (4);71.24    (ii) transportation within district boundaries between a nonpublic school and a 71.25public school or a neutral site for nonpublic school pupils who are provided pupil support 71.26services pursuant to section 
         123B.44; and71.27    (iii) late transportation home from school or between schools within a district for 71.28nonpublic school pupils involved in after-school activities.71.29    (c) "Mobile unit" means a vehicle or trailer designed to provide facilities for 71.30educational programs and services, including diagnostic testing, guidance and counseling 71.31services, and health services. A mobile unit located off nonpublic school premises is a 71.32neutral site as defined in section 
         123B.41, subdivision 13.71.33EFFECTIVE DATE.This section is effective for revenue for fiscal year 2008.71.34    Sec. 2. Minnesota Statutes 2006, section 124D.454, subdivision 2, is amended to read:72.1    Subd. 2. Definitions. For the purposes of this section, the definitions in this 72.2subdivision apply.72.3    (a) "Base year" means the second fiscal year preceding the fiscal year for which 72.4aid will be paid.72.5    (b) "Basic revenue" has the meaning given it in section 
         126C.10, subdivision 2. 72.6For the purposes of computing basic revenue pursuant to this section, each child with a 72.7disability shall be counted as prescribed in section 
         126C.05, subdivision 1. 72.8    (c) "Average daily membership" has the meaning given it in section 126C.05. 72.9    (d) "Program growth factor" means 1.00 for fiscal year 1998 and later. 72.10    (e) "Aid percentage factor" means 100 percent for fiscal year 2000 and later.72.11    (f)(b) "Essential personnel" means a licensed teacher, licensed support services 72.12staff person, paraprofessional providing direct services to students, or licensed personnel 72.13under subdivision 12. This definition is not intended to change or modify the definition of 72.14essential employee in chapter 179A.72.15EFFECTIVE DATE.This section is effective for revenue for fiscal year 2008.72.16    Sec. 3. Minnesota Statutes 2006, section 124D.454, subdivision 3, is amended to read:72.17    Subd. 3. Base revenue Initial aid.(a) The transition-disabled program base revenue72.18initial aid equals the sum of the following amounts computed using basecurrent year data:72.19    (1) 68 percent of the salary of each essential licensed person or approved 72.20paraprofessional who provides direct instructional services to students employed during 72.21that fiscal year for services rendered in that district's transition program for children with a 72.22disability;72.23    (2) 47 percent of the costs of necessary equipment for transition programs for 72.24children with a disability;72.25    (3) 47 percent of the costs of necessary travel between instructional sites by transition 72.26program teachers of children with a disability but not including travel to and from local, 72.27regional, district, state, or national career and technical student organization meetings;72.28    (4) 47 percent of the costs of necessary supplies for transition programs for children 72.29with a disability but not to exceed an average of $47 in any one school year for each child 72.30with a disability receiving these services;72.31    (5) for transition programs for children with disabilities provided by a contract 72.32approved by the commissioner with public, private, or voluntary agencies other than a 72.33Minnesota school district or cooperative center, in place of programs provided by the 72.34district, 52 percent of the difference between the amount of the contract and the basic 73.1revenue of the district for that pupil for the fraction of the school day the pupil receives 73.2services under the contract;73.3    (6) for transition programs for children with disabilities provided by a contract 73.4approved by the commissioner with public, private, or voluntary agencies other than a 73.5Minnesota school district or cooperative center, that are supplementary to a full educational 73.6program provided by the school district, 52 percent of the amount of the contract; and73.7    (7) for a contract approved by the commissioner with another Minnesota school 73.8district or cooperative center for vocational evaluation services for children with a 73.9disability for children that are not yet enrolled in grade 12, 52 percent of the amount 73.10of the contract.73.11    (b) If requested by a school district for transition programs during the base year for 73.12less than the full school year, the commissioner may adjust the base revenue to reflect 73.13the expenditures that would have occurred during the base year had the program been 73.14operated for the full year.73.15EFFECTIVE DATE.This section is effective for revenue for fiscal year 2008.73.16    Sec. 4. Minnesota Statutes 2006, section 125A.11, subdivision 1, is amended to read:73.17    Subdivision 1. Nonresident tuition rate; other costs. (a) For fiscal year 2006, 73.18when a school district provides instruction and services outside the district of residence, 73.19board and lodging, and any tuition to be paid, shall be paid by the district of residence. 73.20The tuition rate to be charged for any child with a disability, excluding a pupil for whom 73.21tuition is calculated according to section 
         127A.47, subdivision 7, paragraph (d), must be 73.22the sum of (1) the actual cost of providing special instruction and services to the child 73.23including a proportionate amount for special transportation and unreimbursed building 73.24lease and debt service costs for facilities used primarily for special education, plus (2) 73.25the amount of general education revenue and referendum aid attributable to the pupil, 73.26minus (3) the amount of special education aid for children with a disability received 73.27on behalf of that child, minus (4) if the pupil receives special instruction and services 73.28outside the regular classroom for more than 60 percent of the school day, the amount of 73.29general education revenue and referendum aid, excluding portions attributable to district 73.30and school administration, district support services, operations and maintenance, capital 73.31expenditures, and pupil transportation, attributable to that pupil for the portion of time 73.32the pupil receives special instruction and services outside of the regular classroom. If 73.33the boards involved do not agree upon the tuition rate, either board may apply to the 73.34commissioner to fix the rate. Notwithstanding chapter 14, the commissioner must then set 73.35a date for a hearing or request a written statement from each board, giving each board 74.1at least ten days' notice, and after the hearing or review of the written statements the 74.2commissioner must make an order fixing the tuition rate, which is binding on both school 74.3districts. General education revenue and referendum equalization aid attributable to a 74.4pupil must be calculated using the resident district's average general education revenue 74.5and referendum revenue equalization aid per adjusted pupil unit.74.6    (b) For fiscal year 2007 and later, when a school district provides special instruction 74.7and services for a pupil with a disability as defined in section 
         125A.02 outside the district 74.8of residence, excluding a pupil for whom an adjustment to special education aid is 74.9calculated according to section 
         127A.47, subdivision 7, paragraph (e), special education 74.10aid paid to the resident district must be reduced by an amount equal to (1) the actual 74.11cost of providing special instruction and services to the pupil, including a proportionate 74.12amount for special transportation and unreimbursed building lease and debt service costs 74.13for facilities used primarily for special education, plus (2) the amount of general education 74.14revenue and referendum equalization aid attributable to that pupil, calculated using the 74.15resident district's average general education revenue and referendum equalization aid 74.16per adjusted pupil unit excluding basic skills revenue, elementary sparsity revenue and 74.17secondary sparsity revenue, minus (3) the amount of special education aid for children 74.18with a disability received on behalf of that child, minus (4) if the pupil receives special 74.19instruction and services outside the regular classroom for more than 60 percent of the 74.20school day, the amount of general education revenue and referendum equalization aid, 74.21excluding portions attributable to district and school administration, district support 74.22services, operations and maintenance, capital expenditures, and pupil transportation, 74.23attributable to that pupil for the portion of time the pupil receives special instruction and 74.24services outside of the regular classroom., general education revenue and referendum aid 74.25attributable to a pupil must be calculated using the resident district's average general 74.26education revenue and referendum equalization aid per adjusted pupil unit excluding 74.27basic skills revenue, elementary sparsity revenue and secondary sparsity revenue and the 74.28serving district's basic skills revenue, elementary sparsity revenue and secondary sparsity 74.29revenue per adjusted pupil unit. Notwithstanding clauses (1) and (4), for pupils served by 74.30a cooperative unit without a fiscal agent school district, the general education revenue and 74.31referendum equalization aid attributable to a pupil must be calculated using the resident 74.32district's average general education revenue and referendum equalization aid excluding 74.33elementary sparsity revenue and secondary sparsity revenue. Special education aid paid to 74.34the district or cooperative providing special instruction and services for the pupil must be 74.35increased by the amount of the reduction in the aid paid to the resident district. Amounts 74.36paid to cooperatives under this subdivision and section 
         127A.47, subdivision 7, shall be 75.1recognized and reported as revenues and expenditures on the resident school district's 75.2books of account under sections 
         123B.75 and 
         123B.76. If the resident district's special 75.3education aid is insufficient to make the full adjustment, the remaining adjustment shall be 75.4made to other state aid due to the district.75.5    (c) Notwithstanding paragraphs (a) and (b) and section 
         127A.47, subdivision 7, 75.6paragraphs (d) and (e), a charter school where more than 30 percent of enrolled students 75.7receive special education and related services, a  site approved under section 125A.515, 75.8an intermediate district, a special education cooperative, or a school district that served 75.9as the applicant agency for a group of school districts for federal special education aids 75.10for fiscal year 2006 may apply to the commissioner for authority to charge the resident 75.11district an additional amount to recover any remaining unreimbursed costs of serving 75.12pupils with a disability. The application must include a description of the costs and the 75.13calculations used to determine the unreimbursed portion to be charged to the resident 75.14district. Amounts approved by the commissioner under this paragraph must be included 75.15in the tuition billings or aid adjustments under paragraph (a) or (b), or section 
         127A.47, 75.16subdivision 7
         , paragraph (d) or (e), as applicable.75.17    (d) For purposes of this subdivision and section 
         127A.47, subdivision 7, paragraphs 75.18(d) and (e), "general education revenue and referendum equalization aid" means the sum 75.19of the general education revenue according to section 
         126C.10, subdivision 1, excluding 75.20alternative teacher compensation revenue, plus the referendum equalization aid according 75.21to section 
         126C.17, subdivision 7, as adjusted according to section 
         127A.47, subdivision 75.227, paragraphs (a) to (c).75.23EFFECTIVE DATE.This section is effective the day following final enactment.75.24    Sec. 5. Minnesota Statutes 2006, section 125A.13, is amended to read:75.25125A.13 SCHOOL OF PARENTS' CHOICE.75.26    (a) Nothing in this chapter must be construed as preventing parents of a child with a 75.27disability from sending the child to a school of their choice, if they so elect, subject to 75.28admission standards and policies adopted according to sections 
         125A.62 to 
         125A.64 and 75.29125A.66
          to 
         125A.73, and all other provisions of chapters 120A to 129C. 75.30    (b) The parent of a student with a disability not yet enrolled in kindergarten and not 75.31open enrolled in a nonresident district may request that the resident district enter into a 75.32tuition agreement with the nonresident district if: 75.33    (1) the child is enrolled in a Head Start program or a licensed child care setting in 75.34the nonresident district; and 76.1    (2) the child can be served in the same setting as other children in the nonresident 76.2district with the same level of disability.76.3    Sec. 6. Minnesota Statutes 2006, section 125A.14, is amended to read:76.4125A.14 SUMMER PROGRAMS EXTENDED SCHOOL YEAR.76.5    A district may provide summer programsextended school year services for children 76.6with a disability living within the district and nonresident children temporarily placed in 76.7the district pursuant to section 
         125A.15 or 
         125A.16. Prior to March 31 or 30 days after the 76.8child with a disability is placed in the district, whichever is later, the providing district 76.9shall give notice to the district of residence of any nonresident children temporarily placed 76.10in the district pursuant to section 
         125A.15 or 
         125A.16, of its intention to provide these 76.11programs. Notwithstanding any contrary provisions in sections 
         125A.15 and 
         125A.16, the 76.12district providing the special instruction and services must apply for special education 76.13aid for the summer program extended school year services. The unreimbursed actual cost 76.14of providing the program for nonresident children with a disability, including the cost of 76.15board and lodging, may be billed to the district of the child's residence and must be paid 76.16by the resident district. Transportation costs must be paid by the district responsible 76.17for providing transportation pursuant to section 
         125A.15 or 
         125A.16 and transportation 76.18aid must be paid to that district. 76.19    Sec. 7. Minnesota Statutes 2006, section 125A.63, is amended by adding a subdivision 76.20to read:76.21    Subd. 5.Statewide hearing loss early education intervention coordinator.(a) 76.22The coordinator shall:76.23    (1) collaborate with the early hearing detection and intervention coordinator for the 76.24Department of Health, the director of the Department of Education Resource Center for 76.25Deaf and Hard-of-Hearing, and the Department of Health Early Hearing Detection and 76.26Intervention Advisory Council;76.27    (2) coordinate and support Department of Education early hearing detection and 76.28intervention teams;76.29    (3) leverage resources by serving as a liaison between interagency early intervention 76.30committees; part C coordinators from the Departments of Education, Health, and 76.31Human Services; Department of Education regional low-incidence facilitators; service 76.32coordinators from school districts; Minnesota children with special health needs in the 76.33Department of Health; public health nurses; child find; Department of Human Services 76.34Deaf and Hard-of-Hearing Services Division; and others as appropriate;77.1    (4) identify, support, and promote culturally appropriate and evidence-based early 77.2intervention practices for infants with hearing loss, and provide training, outreach, and use 77.3of technology to increase consistency in statewide service provision;77.4    (5) identify culturally appropriate specialized reliable and valid instruments to assess 77.5and track the progress of children with hearing loss and promote their use;77.6    (6) ensure that early childhood providers, parents, and members of the individual 77.7family service and intervention plan are provided with child progress data resulting from 77.8specialized assessments;77.9    (7) educate early childhood providers and teachers of the deaf and hard-of-hearing 77.10to use developmental data from specialized assessments to plan and adjust individual 77.11family service plans; and77.12    (8) make recommendations that would improve educational outcomes to the early 77.13hearing detection and intervention committee, the commissioners of education and health, 77.14the Minnesota Commission Serving Deaf and Hard-of-Hearing People, and the advisory 77.15council of the Minnesota Department of Education Resource Center for the Deaf and 77.16Hard-of-Hearing.77.17    (b) The Department of Education must provide aggregate data regarding outcomes 77.18of deaf and hard-of-hearing children who receive early intervention services within the 77.19state in accordance with the state performance plan.77.20    Sec. 8. Minnesota Statutes 2006, section 125A.75, subdivision 1, is amended to read:77.21    Subdivision 1. Travel aid. The state must pay each district one-half of the sum 77.22actually expended by a district, based on mileage, for necessary travel of essential 77.23personnel providing home-based or community-based services to children with a disability 77.24under age five and their families.77.25    Sec. 9. Minnesota Statutes 2006, section 125A.75, subdivision 4, is amended to read:77.26    Subd. 4. Program and aid approval. Before June 1 of each year, each district 77.27providing special instruction and services to children with a disability, including children 77.28eligible for Part C, as defined in section 125A.02, subdivision 1, and section 125A.27, 77.29subdivision 8,  must submit to the commissioner an application for approval of these 77.30programs and their budgets for the next fiscal year. The application must include an 77.31enumeration of the costs proposed as eligible for state aid pursuant to this section and of 77.32the estimated number and grade level of children with a disability in the district who will 77.33receive special instruction and services during the regular school year and in summer 77.34school programs during the next fiscal year. The application must also include any 78.1other information deemed necessary by the commissioner for the calculation of state aid 78.2and for the evaluation of the necessity of the program, the necessity of the personnel 78.3to be employed in the program, for determining the amount which the program will 78.4receive from grants from federal funds, or special grants from other state sources, and 78.5the program's compliance with the rules and standards of the Department of Education. 78.6The commissioner shall review each application to determine whether the program and 78.7the personnel to be employed in the program are actually necessary and essential to meet 78.8the district's obligation to provide special instruction and services to children with a 78.9disability pursuant to sections 
         125A.03 to 
         125A.24, 
         125A.259 to 
         125A.48, and 
         125A.65. 78.10The commissioner shall not approve aid pursuant to this section for any program or for 78.11the salary of any personnel determined to be unnecessary or unessential on the basis of 78.12this review. The commissioner may withhold all or any portion of the aid for programs 78.13which receive grants from federal funds, or special grants from other state sources. By 78.14August 31 the commissioner shall approve, disapprove, or modify each application, and 78.15notify each applying district of the action and of the estimated amount of aid for the 78.16programs. The commissioner shall provide procedures for districts to submit additional 78.17applications for program and budget approval during the fiscal year, for programs needed 78.18to meet any substantial changes in the needs of children with a disability in the district. 78.19Notwithstanding the provisions of section 
         127A.42, the commissioner may modify or 78.20withdraw the program or aid approval and withhold aid pursuant to this section without 78.21proceeding according to section 
         127A.42 at any time the commissioner determines that 78.22the program does not comply with rules of the Department of Education or that any facts 78.23concerning the program or its budget differ from the facts in the district's approved 78.24application. 78.25EFFECTIVE DATE.This section is effective for revenue for fiscal year 2008.78.26    Sec. 10. Minnesota Statutes 2006, section 125A.75, is amended by adding a 78.27subdivision to read:78.28    Subd. 9.Litigation costs; annual report.(a) By November 30 of each year, 78.29a school district must annually report the district's special education litigation costs, 78.30including attorney fees and costs of due process hearings, to the commissioner of 78.31education, consistent with the Uniform Financial Accounting and Reporting Standards.78.32    (b) By January 15 of each year, the commissioner shall report school district special 78.33education litigation costs to the house of representatives and the senate committees having 78.34jurisdiction over kindergarten through grade 12 education finance.79.1    Sec. 11. Minnesota Statutes 2006, section 125A.76, subdivision 1, is amended to read:79.2    Subdivision 1. Definitions. For the purposes of this section, the definitions in this 79.3subdivision apply.79.4    (a) "Base year" for fiscal year 1998 and later fiscal years means the second fiscal 79.5year preceding the fiscal year for which aid will be paid.79.6    (b) "Basic revenue" has the meaning given it in section 
         126C.10, subdivision 2. 79.7For the purposes of computing basic revenue pursuant to this section, each child with a 79.8disability shall be counted as prescribed in section 
         126C.05, subdivision 1. 79.9    (c)(b) "Essential personnel" means teachers, cultural liaisons, related services, and 79.10support services staff providing direct services to students. Essential personnel may also 79.11include special education paraprofessionals or clericals providing support to teachers and 79.12students by preparing paperwork and making arrangements related to special education 79.13compliance requirements, including parent meetings and individual education plans.79.14    (d)(c) "Average daily membership" has the meaning given it in section 
         126C.05. 79.15    (e)(d) "Program growth factor" means 
         1.046 for fiscal year 2003, and 1.0 for fiscal 79.16year 20042012 and later. 79.17EFFECTIVE DATE.This section is effective for revenue for fiscal year 2008.79.18    Sec. 12. Minnesota Statutes 2006, section 125A.76, subdivision 2, is amended to read:79.19    Subd. 2. Special education base revenue initial aid.(a) The special education 79.20base revenueinitial aid equals the sum of the following amounts computed using base79.21current year data:79.22    (1) 68 percent of the salary of each essential person employed in the district's 79.23program for children with a disability during the fiscal year, whether the person is 79.24employed by one or more districts or a Minnesota correctional facility operating on a 79.25fee-for-service basis;79.26    (2) for the Minnesota State Academy for the Deaf or the Minnesota State Academy 79.27for the Blind, 68 percent of the salary of each instructional aide assigned to a child 79.28attending the academy, if that aide is required by the child's individual education plan;79.29    (3) for special instruction and services provided to any pupil by contracting with 79.30public, private, or voluntary agencies other than school districts, in place of special 79.31instruction and services provided by the district, 52 percent of the difference between 79.32the amount of the contract and the amount of the basic revenue, as defined in section 79.33126C.10, subdivision 2, special education aid, and any other aid earned on behalf of 79.34the childthe general education revenue, excluding basic skills revenue and alternative 79.35teacher compensation revenue, and referendum equalization aid attributable to a pupil, 80.1calculated using the resident district's average general education revenue and referendum 80.2equalization aid per adjusted pupil unit for the fraction of the school day the pupil receives 80.3services under the contract. This includes children who are residents of the state, receive 80.4services under this subdivision and subdivision 1, and are placed in a care and treatment 80.5facility by court action in a state that does not have a reciprocity agreement with the 80.6commissioner under section 125A.155 as provided for in section 125A.79, subdivision 8; 80.7    (4) for special instruction and services provided to any pupil by contracting for 80.8services with public, private, or voluntary agencies other than school districts, that are 80.9supplementary to a full educational program provided by the school district, 52 percent of 80.10the amount of the contract for that pupil;80.11    (5) for supplies and equipment purchased or rented for use in the instruction of 80.12children with a disability, an amount equal to 47 percent of the sum actually expended by 80.13the district, or a Minnesota correctional facility operating on a fee-for-service basis, but 80.14not to exceed an average of $47 in any one school year for each child with a disability 80.15receiving instruction;80.16    (6) for fiscal years 1997 and later, special education base revenue shall include 80.17amounts under clauses (1) to (5) for special education summer programs provided during 80.18the base year for that fiscal year; and80.19    (7) for fiscal years 1999 and later, the cost of providing transportation services for 80.20children with disabilities under section 
         123B.92, subdivision 1, paragraph (b), clause 80.21(4); and80.22    (8) the district's transition-disabled program initial aid according to section 80.23124D.454, subdivision 3. 80.24    The department shall establish procedures through the uniform financial accounting 80.25and reporting system to identify and track all revenues generated from third-party billings 80.26as special education revenue at the school district level; include revenue generated from 80.27third-party billings as special education revenue in the annual cross-subsidy report; and 80.28exclude third-party revenue from calculation of excess cost aid to the districts.80.29    (b) If requested by a school district operating a special education program during 80.30the base year for less than the full fiscal year, or a school district in which is located a 80.31Minnesota correctional facility operating on a fee-for-service basis for less than the full 80.32fiscal year, the commissioner may adjust the base revenue to reflect the expenditures 80.33that would have occurred during the base year had the program been operated for the 80.34full fiscal year.80.35    (c) Notwithstanding paragraphs (a) and (b), the portion of a school district's base 80.36revenue attributable to a Minnesota correctional facility operating on a fee-for-service 81.1basis during the facility's first year of operating on a fee-for-service basis shall be 81.2computed using current year data.81.3EFFECTIVE DATE.This section is effective for revenue for fiscal year 2008.81.4    Sec. 13. Minnesota Statutes 2006, section 125A.76, subdivision 4, is amended to read:81.5    Subd. 4. State total special education aid.The state total special education aid 81.6for fiscal year 2004 equals $530,642,000. The state total special education aid for fiscal 81.7year 2005 equals $529,164,000 $529,247,000 for fiscal year 2007, $709,698,000 for 81.8fiscal year 2008, $742,334,000 for fiscal year 2009, $778,780,000 for fiscal year 2010, 81.9and $817,167,000 for fiscal year 2011. The state total special education aid for later 81.10fiscal years equals:81.11    (1) the state total special education aid for the preceding fiscal year; times81.12    (2) the program growth factor; times81.13    (3) the greater of one, or the ratio of the state total average daily membership for the 81.14current fiscal year to the state total average daily membership for the preceding fiscal year.81.15EFFECTIVE DATE.This section is effective for revenue for fiscal year 2008.81.16    Sec. 14. Minnesota Statutes 2006, section 125A.76, subdivision 5, is amended to read:81.17    Subd. 5. School district special education aid.(a) A school district's special 81.18education aid for fiscal year 20002008 and later equals the state total special education 81.19aid, minus the amount determined under paragraphs (b) and (c), times the ratio of the 81.20district's adjustedinitial special education base revenueaid to the state total adjusted81.21initial special education base revenue aid. If the commissioner of education modifies 81.22its rules for special education in a manner that increases a district's special education 81.23obligations or service requirements, the commissioner shall annually increase each 81.24district's special education aid by the amount necessary to compensate for the increased 81.25service requirements. The additional aid equals the cost in the current year attributable to 81.26rule changes not reflected in the computation of special education base revenue, multiplied 81.27by the appropriate percentages from subdivision 2.81.28    (b) Notwithstanding paragraph (a), if the special education base revenue for a 81.29district equals zero, the special education aid equals the amount computed according 81.30to subdivision 2 using current year data.81.31    (c) Notwithstanding paragraphs (a) and (b), if the special education base revenue for 81.32a district is greater than zero, and the base year amount for the district under subdivision 81.332, paragraph (a), clause (7), equals zero, the special education aid equals the sum of the 82.1amount computed according to paragraph (a), plus the amount computed according to 82.2subdivision 2, paragraph (a), clause (7), using current year data.82.3    (d) A charter school under section 124D.10 shall generate state special education 82.4aid based on current year expenditures for its first four years of operation and only in its 82.5fifth and later years shall paragraphs (a), (b), and (c) apply. 82.6EFFECTIVE DATE.This section is effective for revenue for fiscal year 2008.82.7    Sec. 15. Minnesota Statutes 2006, section 125A.76, is amended by adding a 82.8subdivision to read:82.9    Subd. 8.Special education forecast maintenance of effort.(a) If, on the basis of 82.10a forecast of general fund revenues and expenditures under section 16A.103, the state's 82.11expenditures for special education and related services for children with disabilities 82.12from nonfederal sources for a fiscal year, including special education aid under section 82.13125A.76; special education excess cost aid under section 125A.76, subdivision 7; travel 82.14for home-based services under section 125A.75, subdivision 1; aid for students with 82.15disabilities under section 125A.75, subdivision 3; court-placed special education under 82.16section 125A.79, subdivision 4; out-of-state tuition under section 125A.79, subdivision 8; 82.17and direct expenditures by state agencies are projected to be less than the amount required 82.18to meet federal special education maintenance of effort, the additional amount required 82.19to meet federal special education maintenance of effort is added to the state total special 82.20education aid in section 125A.76, subdivision 4.82.21    (b) If, on the basis of a forecast of general fund revenues and expenditures under 82.22section 16A.103, expenditures in the programs in paragraph (a) are projected to be greater 82.23than previously forecast for an enacted budget, and an addition to state total special 82.24education aid has been made under paragraph (a), the state total special education aid 82.25must be reduced by the lesser of the amount of the expenditure increase or the amount 82.26previously added to state total special education aid in section 125A.76, subdivision 4.82.27    (c) For the purpose of this section, "previously forecast for an enacted budget" means 82.28the allocation of funding for these programs in the most recent forecast of general fund 82.29revenues and expenditures or the act appropriating money for these programs, whichever 82.30occurred most recently. It does not include planning estimates for a future biennium.82.31    (d) If the amount of special education aid is adjusted in accordance with this 82.32subdivision, the commissioner of education shall notify the chairs of the legislative 82.33committees having jurisdiction over kindergarten through grade 12 education regarding 82.34the amount of the adjustment and provide an explanation of the federal maintenance of 82.35effort requirements.83.1EFFECTIVE DATE.This section is effective for fiscal year 2008.83.2    Sec. 16. Minnesota Statutes 2006, section 125A.78, is amended to read:83.3125A.78 ALTERNATIVE DELIVERY BASE REVENUEINITIAL AID 83.4ADJUSTMENT.83.5    Subdivision 1. Eligibility. A district is eligible for an alternative delivery base 83.6revenueinitial aid adjustment if the commissioner has approved the application of the 83.7district according to section 
         125A.50. 83.8    Subd. 2. Base revenueInitial aid adjustment. For the third fiscal year after 83.9approval of a district's application, and thereafter, the special education base revenueinitial 83.10aid under section 
         125A.76, subdivision 1, must be computed based on activities defined as 83.11reimbursable under Department of Education rules for special education and nonspecial 83.12education students, and additional activities as detailed and approved by the commissioner. 83.13    Subd. 3. Use of revenue. Revenue under section 
         125A.76 shall be used to 83.14implement the approved program. 83.15    Sec. 17. Minnesota Statutes 2006, section 125A.79, subdivision 1, is amended to read:83.16    Subdivision 1. Definitions. For the purposes of this section, the definitions in this 83.17subdivision apply.83.18    (a) "Unreimbursed special education cost" means the sum of the following:83.19    (1) expenditures for teachers' salaries, contracted services, supplies, equipment, and 83.20transportation services eligible for revenue under section 
         125A.76; plus83.21    (2) expenditures for tuition bills received under sections 
         125A.03 to 
         125A.24 and 83.22125A.65
          for services eligible for revenue under section 
         125A.76, subdivision 2; minus83.23    (3) revenue for teachers' salaries, contracted services, supplies, and equipment, and 83.24transportation services under section 
         125A.76; minus83.25    (4) tuition receipts under sections 
         125A.03 to 
         125A.24 and 
         125A.65 for services 83.26eligible for revenue under section 
         125A.76, subdivision 2.83.27    (b) "General revenue" means the sum of the general education revenue according to 83.28section 
         126C.10, subdivision 1, excluding alternative teacher compensation revenue, plus 83.29the total qualifying referendum revenue specified in paragraph (e) minus transportation 83.30sparsity revenue minus total operating capital revenue.83.31    (c) "Average daily membership" has the meaning given it in section 
         126C.05.83.32    (d) "Program growth factor" means 
         1.02 for fiscal year 2003, and 1.0 for fiscal 83.33year 20042012 and later.84.1    (e) "Total qualifying referendum revenue" means two-thirds of the district's total 84.2referendum revenue as adjusted according to section 
         127A.47, subdivision 7, paragraphs 84.3(a) to (c), for fiscal year 2006, one-third of the district's total referendum revenue for fiscal 84.4year 2007, and none of the district's total referendum revenue for fiscal year 2008 and later.84.5    Sec. 18. Minnesota Statutes 2006, section 125A.79, subdivision 5, is amended to read:84.6    Subd. 5. Initial excess cost aid. For fiscal years 20022008 and later, a district's 84.7initial excess cost aid equals the greatestgreater of:84.8    (1) 75 percent of the difference between (i) the district's unreimbursed special 84.9education cost and (ii) 
         4.36 percent of the district's general revenue;  or84.10    (2) 70 percent of the difference between (i) the increase in the district's unreimbursed 84.11special education cost between the base year as defined in section 125A.76, subdivision 1, 84.12and the current year and (ii) 1.6 percent of the district's general revenue; or84.13    (3) zero.84.14    Sec. 19. Minnesota Statutes 2006, section 125A.79, subdivision 6, is amended to read:84.15    Subd. 6. State total special education excess cost aid. The state total special 84.16education excess cost aid for fiscal year 2005 equals $91,811,000 $104,700,000 for 84.17fiscal year 2007, $122,586,000 for fiscal year 2008, $125,302,000 for fiscal year 2009, 84.18$125,477,000 for fiscal year 2010, and $125,858,000 for fiscal year 2011. The state 84.19total special education excess cost aid equals $103,600,000 for fiscal year 2006 and 84.20$104,700,000 for fiscal year 2007. The state total special education excess cost aid for 84.21fiscal year 2008 and later fiscal years equals:84.22    (1) the state total special education excess cost aid for the preceding fiscal year; times84.23    (2) the program growth factor; times84.24    (3) the greater of one, or the ratio of the state total average daily membership for the 84.25current fiscal year to the state total average daily membership for the preceding fiscal year.84.26EFFECTIVE DATE.This section is effective for revenue for fiscal year 2008.84.27    Sec. 20. Minnesota Statutes 2006, section 125A.79, subdivision 8, is amended to read:84.28    Subd. 8. Out-of-state tuition. For children who are residents of the state, receive 84.29services under section 
         125A.76, subdivisions 1 and 2, and are placed in a care and 84.30treatment facility by court action in a state that does not have a reciprocity agreement 84.31with the commissioner under section 
         125A.155, the resident school district shall submit 84.32the balance of the tuition bills, minus the amount of the basic revenue, as defined by 84.33section 126C.10, subdivision 2, of the district for the child and the general education 85.1revenue, excluding basic skills revenue and alternative teacher compensation revenue, 85.2and referendum equalization aid attributable to the pupil, calculated using the resident 85.3district's average general education revenue and referendum equalization aid per adjusted 85.4pupil unit minus  the special education aid, and any other aid earned on behalf of the child85.5contracted services initial revenue attributable to the pupil. 85.6    Sec. 21. Minnesota Statutes 2006, section 127A.47, subdivision 7, is amended to read:85.7    Subd. 7. Alternative attendance programs. The general education aid and special 85.8education aid for districts must be adjusted for each pupil attending a nonresident district 85.9under sections 
         123A.05 to 
         123A.08, 
         124D.03, 
         124D.06, 
         124D.08, and 
         124D.68. The 85.10adjustments must be made according to this subdivision.85.11    (a) General education aid paid to a resident district must be reduced by an amount 85.12equal to the referendum equalization aid attributable to the pupil in the resident district.85.13    (b) General education aid paid to a district serving a pupil in programs listed in this 85.14subdivision must be increased by an amount equal to the referendum equalization aid 85.15attributable to the pupil in the nonresident district.85.16    (c) If the amount of the reduction to be made from the general education aid of the 85.17resident district is greater than the amount of general education aid otherwise due the 85.18district, the excess reduction must be made from other state aids due the district.85.19    (d) For fiscal year 2006, the district of residence must pay tuition to a district or an 85.20area learning center, operated according to paragraph (f), providing special instruction and 85.21services to a pupil with a disability, as defined in section 
         125A.02, or a pupil, as defined in 85.22section 
         125A.51, who is enrolled in a program listed in this subdivision. The tuition must 85.23be equal to (1) the actual cost of providing special instruction and services to the pupil, 85.24including a proportionate amount for special transportation and unreimbursed building 85.25lease and debt service costs for facilities used primarily for special education, minus (2) if 85.26the pupil receives special instruction and services outside the regular classroom for more 85.27than 60 percent of the school day, the amount of general education revenue and referendum 85.28equalization aid attributable to that pupil for the portion of time the pupil receives special 85.29instruction and services outside of the regular classroom, excluding portions attributable to 85.30district and school administration, district support services, operations and maintenance, 85.31capital expenditures, and pupil transportation, minus (3) special education aid attributable 85.32to that pupil, that is received by the district providing special instruction and services. 85.33For purposes of this paragraph, general education revenue and referendum equalization 85.34aid attributable to a pupil must be calculated using the serving district's average general 85.35education revenue and referendum equalization aid per adjusted pupil unit.86.1    (e) For fiscal year 2007 and later, special education aid paid to a resident district 86.2must be reduced by an amount equal to (1) the actual cost of providing special instruction 86.3and services, including special transportation and unreimbursed building lease and debt 86.4service costs for facilities used primarily for special education, for a pupil with a disability, 86.5as defined in section 
         125A.02, or a pupil, as defined in section 
         125A.51, who is enrolled 86.6in a program listed in this subdivision, minus (2) if the pupil receives special instruction 86.7and services outside the regular classroom for more than 60 percent of the school day, 86.8the amount of general education revenue and referendum equalization aid attributable 86.9to that pupil for the portion of time the pupil receives special instruction and services 86.10outside of the regular classroom, excluding portions attributable to district and school 86.11administration, district support services, operations and maintenance, capital expenditures, 86.12and pupil transportation, minus (3) special education aid attributable to that pupil, that is 86.13received by the district providing special instruction and services. For purposes of this 86.14paragraph, general education revenue and referendum equalization aid attributable to a 86.15pupil must be calculated using the serving district's average general education revenue 86.16and referendum equalization aid per adjusted pupil unit. Special education aid paid to the 86.17district or cooperative providing special instruction and services for the pupil, or to the 86.18fiscal agent district for a cooperative, must be increased by the amount of the reduction 86.19in the aid paid to the resident district. If the resident district's special education aid is 86.20insufficient to make the full adjustment, the remaining adjustment shall be made to other 86.21state aids due to the district.86.22    (f) An area learning center operated by a service cooperative, intermediate district, 86.23education district, or a joint powers cooperative may elect through the action of the 86.24constituent boards to charge the resident district tuition for pupils rather than to have the 86.25general education revenue paid to a fiscal agent school district. Except as provided in 86.26paragraph (d) or (e), the district of residence must pay tuition equal to at least 90 percent 86.27of the district average general education revenue per pupil unit minus an amount equal to 86.28the product of the formula allowance according to section 
         126C.10, subdivision 2, times 86.29.0485, calculated without basic skills revenue and transportation sparsity revenue, times 86.30the number of pupil units for pupils attending the area learning center, plus the amount of 86.31compensatory revenue generated by pupils attending the area learning center.86.32EFFECTIVE DATE.This section is effective the day following final enactment.86.33    Sec. 22. Laws 2006, chapter 263, article 3, section 15, is amended to read:86.34    Sec. 15. SPECIAL EDUCATION TUITION BILLING FOR FISCAL YEARS 86.352006 AND, 2007, AND 2008.87.1    (a) Notwithstanding Minnesota Statutes, sections 
         125A.11, subdivision 1, paragraph 87.2(a), and 
         127A.47, subdivision 7, paragraph (d), for fiscal year 2006 an intermediate 87.3district, special education cooperative, or school district that served as an applicant 87.4agency for a group of school districts for federal special education aids for fiscal year 87.52006 is not subject to the uniform special education tuition billing calculations, but may 87.6instead continue to bill the resident school districts for the actual unreimbursed costs 87.7of serving pupils with a disability as determined by the intermediate district, special 87.8education cooperative, or school district.87.9    (b) Notwithstanding Minnesota Statutes, section 
         125A.11, subdivision 1, paragraph 87.10(c), for fiscal year 2007 only, an applicant district agency exempted from the uniform 87.11special education tuition billing calculations for fiscal year 2006 under paragraph (a)87.12may apply to the commissioner for a waiver an exemption from the uniform special 87.13education tuition calculations and aid adjustments under Minnesota Statutes, sections 87.14125A.11, subdivision 1
         , paragraph (b), and 
         127A.47, subdivision 7, paragraph (e). The 87.15commissioner must grant the waiver exemption within 30 days of receiving the following 87.16information from the intermediate district, special education cooperative, or school district:87.17    (1) a detailed description of the applicant district's methodology for calculating 87.18special education tuition for fiscal years 2006 and 2007, as required by the applicant 87.19district to recover the full cost of serving pupils with a disability;87.20    (2) sufficient data to determine the total amount of special education tuition actually 87.21charged for each student with a disability, as required by the applicant district to recover 87.22the full cost of serving pupils with a disability in fiscal year 2006; and87.23    (3) sufficient data to determine the amount that would have been charged for each 87.24student for fiscal year 2006 using the uniform tuition billing methodology according 87.25to Minnesota Statutes, sections 
         125A.11, subdivision 1, or 
         127A.47, subdivision 7, 87.26as applicable.87.27    (c) Notwithstanding Minnesota Statutes, section 125A.11, subdivision 1, paragraph 87.28(c), for fiscal year 2008 only, an agency granted an exemption from the uniform special 87.29education tuition billing calculations and aid adjustments for fiscal year 2007 under 87.30paragraph (b)  may apply to the commissioner for a one-year extension of the exemption 87.31granted under paragraph (b). The commissioner must grant the extension within 30 days 87.32of receiving the request. 87.33    (d) Notwithstanding Minnesota Statutes, section 125A.11, subdivision 1, paragraphs 87.34(a) and (b), and section 127A.47, subdivision 7, paragraphs (d) and (e), for fiscal year 2007 87.35only, a school district or charter school not eligible for a waiver under Minnesota Statutes, 87.36section 125A.11, subdivision 1, paragraph (d), may apply to the commissioner for authority 88.1to charge the resident district an additional amount to recover any remaining unreimbursed 88.2costs of serving pupils with a disability. The application must include a description of the 88.3costs and the calculations used to determine the unreimbursed portion to be charged to the 88.4resident district. Amounts approved by the commissioner under this paragraph must be 88.5included in the tuition billings or aid adjustments under paragraph (a) or (b), or Minnesota 88.6Statutes, section 127A.47, subdivision 7, paragraph (d) or (e), as applicable.88.7EFFECTIVE DATE.This section is effective the day following final enactment.88.8    Sec. 23. TASK FORCE TO COMPARE FEDERAL AND STATE SPECIAL 88.9EDUCATION REQUIREMENTS.88.10    Subdivision 1.Establishment; duties.A task force is established to recommend 88.11which state laws and rules that exceed or expand upon minimum federal special education 88.12requirements for providing special education programs and services to eligible students 88.13should be amended to conform with minimum federal requirements. The commissioner 88.14of the Bureau of Mediation Services under Minnesota Statutes, section 179.02, after 88.15consulting with interested stakeholders, shall appoint a ten-member task force composed 88.16of equal numbers of providers, advocates, regulators, consumers of special education 88.17services, lawyers who practice in the field of special education and represent either parents 88.18or school districts, special education teachers, and school officials. The commissioner must 88.19convene the task force by August 1, 2007, which shall meet regularly and shall review the 88.20January 25, 2006, report prepared by the Minnesota Department of Education Office of 88.21Compliance and Assistance and other relevant studies and resources analyzing differences 88.22between federal and state special education requirements. The terms and compensation of 88.23task force members are governed by Minnesota Statutes, section 15.059, subdivision 6.88.24    Subd. 2.Report.The task force must submit to the education policy and finance 88.25committees of the legislature by February 15, 2008, a report that identifies and clearly 88.26and concisely explains each provision in state law or rule that exceeds or expands upon 88.27a minimum federal requirement contained in law or regulation for providing special 88.28education programs and services to eligible students. The report also must recommend 88.29which state provisions that exceed or expand upon a minimum federal requirement may 88.30be amended to conform with minimum federal requirements. The task force expires 88.31when it submits its report to the legislature.88.32EFFECTIVE DATE.This section is effective the day following final enactment.88.33    Sec. 24. APPROPRIATIONS.89.1    Subdivision 1.Department of Education.The sums indicated in this section are 89.2appropriated from the general fund to the Department of Education for the fiscal years 89.3designated.89.4    Subd. 2.Special education; regular.For special education aid under Minnesota 89.5Statutes, section 125A.75:

89.6$691,653,000.....200889.7$739,070,000.....2009

89.8    The 2008 appropriation includes $52,965,000 for 2007 and $638,688,000 for 2008.89.9    The 2009 appropriation includes $70,965,000 for 2008 and $668,105,000 for 2009.89.10    Subd. 3.Aid for children with disabilities.For aid under Minnesota Statutes, 89.11section 125A.75, subdivision 3, for children with disabilities placed in residential facilities 89.12within the district boundaries for whom no district of residence can be determined:

89.13$1,538,000.....200889.14$1,729,000.....2009

89.15    If the appropriation for either year is insufficient, the appropriation for the other 89.16year is available.89.17    Subd. 4.Travel for home-based services.For aid for teacher travel for home-based 89.18services under Minnesota Statutes, section 125A.75, subdivision 1:

89.19$254,000.....200889.20$284,000.....2009

89.21    The 2008 appropriation includes $22,000 for 2007 and $232,000 for 2008.89.22    The 2009 appropriation includes $25,000 for 2008 and $259,000 for 2009.89.23    Subd. 5.Special education; excess costs.For excess cost aid under Minnesota 89.24Statutes, section 125A.79, subdivision 7:

89.25$116,612,000.....200889.26$124,395,000.....2009

89.27    The 2008 appropriation includes $34,969,000 for 2007 and $81,643,000 for 2008.89.28    The 2009 appropriation includes $40,943,000 for 2008 and $83,452,000 for 2009.89.29    Subd. 6.Transition for disabled students.For aid for transition programs for 89.30children with disabilities under Minnesota Statutes, section 124D.454:

89.31$879,000.....2008

89.32    The 2008 appropriation includes $879,000 for 2007 and $0 for 2008.90.1    Subd. 7.Court-placed special education revenue.For reimbursing serving 90.2school districts for unreimbursed eligible expenditures attributable to children placed in 90.3the serving school district by court action under Minnesota Statutes, section 125A.79, 90.4subdivision 4:

90.5$72,000.....200890.6$74,000.....2009

90.7    Subd. 8.Special education out-of-state tuition.For special education out-of-state 90.8tuition according to Minnesota Statutes, section 125A.79, subdivision 8:

90.9$250,000.....200890.10$250,000.....2009

90.11    Subd. 9.Special Education Task Force.For the task force to compare federal 90.12and state special education requirements:

90.13$20,000.....2008

90.14    This is a onetime appropriation.90.15    Sec. 25.  REPEALER.90.16(a) Minnesota Statutes 2006, sections 125A.10; and 125A.75, subdivision 6, are 90.17repealed.90.18(b) Minnesota Statutes 2006, sections 124D.454, subdivisions 4, 5, 6, and 7; and 90.19125A.76, subdivision 3, are repealed effective for revenue for fiscal year 2008.90.20ARTICLE 490.21FACILITIES AND TECHNOLOGY90.22    Section 1. Minnesota Statutes 2006, section 123A.44, is amended to read:90.23123A.44 CITATION.90.24    Sections 
         123A.441 to 
         123A.446 may be cited as the "Cooperative Secondary90.25Facilities Grant Act." 90.26EFFECTIVE DATE.This section is effective the day following final enactment.90.27    Sec. 2. Minnesota Statutes 2006, section 123A.441, is amended to read:90.28123A.441 POLICY AND PURPOSE.90.29    Because of the rates of decline in school-aged population, population shifts and 90.30economic changes that the state has experienced in recent years and anticipates in future 91.1years, and because in some instances local districts have not, and will not be able to 91.2provide the required construction funds through local property taxes, the purpose of the 91.3cooperative secondary facilities grant program is to provide an incentive to encourage 91.4cooperation in making available to all secondary students those educational programs, 91.5services and facilities that are most efficiently and effectively provided by a cooperative 91.6effort of several school districts. The policy and purpose of sections 
         123A.442 to 91.7123A.446
          is to use the credit of the state, to a limited degree, to provide grants to 91.8cooperating groups of districts to improve and expand the educational opportunities and 91.9facilities available to their secondary students. 91.10EFFECTIVE DATE.This section is effective the day following final enactment.91.11    Sec. 3. Minnesota Statutes 2006, section 123A.442, is amended to read:91.12123A.442 APPROVAL AUTHORITY; APPLICATION FORMS.91.13    Subdivision 1. Approval by commissioner. To the extent money is available, the 91.14commissioner may approve projects from applications submitted under section 
         123A.443. 91.15The grant money must be used only to acquire, construct, remodel or improve the building 91.16or site of a cooperative secondary facility under contracts to be entered into within 15 91.17months after the date on which each grant is awarded. 91.18    Subd. 2. Cooperation and combination. Districts that have not already 91.19consolidated and receive a cooperative secondary facilities grant after May 1, 1991, shall:91.20    (1) submit a consolidation plan as set forth in under section 
         123A.36 123A.48 for 91.21approval by the State Board of Education before December 31, 1999, or Department of 91.22Education after December 30, 1999; and 91.23    (2) hold a referendum on the question of combination consolidation no later than 91.24four years after a grant is awarded under subdivision 1.91.25    The districts are eligible for cooperation and combination consolidation revenue 91.26under section 
         123A.39, subdivision 3 123A.485. 91.27    Subd. 3.Consolidated districts.A school district that has consolidated with 91.28another school district since July 1, 1980, is eligible for a cooperative facilities grant.91.29EFFECTIVE DATE.This section is effective the day following final enactment.91.30    Sec. 4. Minnesota Statutes 2006, section 123A.443, is amended to read:91.31123A.443 GRANT APPLICATION PROCESS.91.32    Subdivision 1. Qualification. Any group of districts or a consolidated district91.33that meets the criteria required under subdivision 2 may apply for an incentive grant for 92.1construction of a new secondary facility or for remodeling and improving an existing 92.2secondary facility. A grant for new construction must not exceed the lesser of $5,000,00092.3$20,000,000 or 75 percent of the approved construction costs of a cooperative secondary92.4education facility. A grant for remodeling and improving an existing facility must not 92.5exceed $200,000 the lesser of $10,000,000, or 75 percent of the approved remodeling 92.6costs.92.7    Subd. 2. Review by commissioner. (a) A group of districts or a consolidated district 92.8that submits an application for a grant must submit a proposal to the commissioner for 92.9review and comment under section 
         123B.71. The commissioner shall prepare a review 92.10and comment on the proposed facility by July 1 of an odd-numbered year, regardless of 92.11the amount of the capital expenditure required to acquire, construct, remodel or improve 92.12the secondary facility. The commissioner shall not approve an application for an incentive 92.13grant for any secondary facility unless the facility receives a favorable review and 92.14comment under section 
         123B.71 and the following criteria are met: 92.15    (1) the applicant is a consolidated district or a minimum of two or more districts, 92.16with kindergarten to grade 12 enrollments in each district of no more than 1,200 pupils, 92.17enter that have entered into a joint powers agreement;92.18    (2) for a group of districts, a joint powers board representing all participating 92.19districts is established under section 
         471.59 to govern the cooperative secondary facility; 92.20    (3) the planned secondary facility will result in the joint powers district meeting the 92.21requirements of Minnesota Rules, parts 3500.2010 and 3500.2110;92.22    (4) at least 198 pupils would be served in grades 10 to 12, 264 pupils would be 92.23served in grades 9 to 12, or 396 pupils would be served in grades 7 to 12;92.24    (5)(3) for a group of districts, no more than one superintendent is employed by the 92.25joint powers board as a result of the cooperative secondary facility agreement;92.26    (6) (4) a statement of need is submitted, that may include reasons why the current 92.27secondary facilities are inadequate, unsafe or inaccessible to persons with disabilities;92.28    (7) (5) an educational plan is prepared, that includes input from both community and 92.29professional staff;92.30    (8) (6) for a group of districts, a combined seniority list for all participating districts 92.31is developed by the joint powers board;92.32    (9) (7) for a group of districts, an education program is developed that provides for 92.33more learning opportunities and course offerings, including the offering of advanced 92.34placement courses, for students than is currently available in any single member district;93.1    (10) (8) a plan is developed for providing instruction of any resident students in 93.2other districts when distance to the secondary education facility makes attendance at the 93.3facility unreasonably difficult or impractical; and93.4    (11) (9) for a secondary facility, the joint powers board established under clause (2) 93.5discusses with technical colleges located in the area how vocational education space in 93.6the cooperative secondary facility could be jointly used for secondary and postsecondary 93.7purposes.93.8    (b) To the extent possible, the joint powers board is encouraged to provide for 93.9severance pay or for early retirement incentives under section 
         122A.48, for any teacher 93.10or administrator, as defined under section 
         122A.40, subdivision 1, who is placed on 93.11unrequested leave as a result of the cooperative secondary facility agreement. 93.12    (c) For the purpose of paragraph (a), clause (8) (6), each district must be considered 93.13to have started school each year on the same date.93.14    (d) The districts may develop a plan that provides for the location of social service, 93.15health, and other programs serving pupils and community residents within the cooperative 93.16secondary facility. The commissioner shall consider this plan when preparing a review 93.17and comment on the proposed facility.93.18    (e) The districts must schedule and conduct a meeting on library services. The 93.19school districts, in cooperation with the regional public library system and its appropriate 93.20member libraries, must discuss the possibility of including jointly operated library services 93.21at the cooperative secondary facility.93.22    (f) The board of a district that has reorganized under section 
         123A.37 or 
         123A.4893.23and that is applying for a grant for remodeling or improving an existing facility may act in 93.24the place of a joint powers board to meet the criteria of this subdivision. 93.25    Subd. 3. Reorganizing districts. A district that is a member of a joint powers 93.26board established under subdivision 2 and that is planning to reorganize under section 93.27123A.45
         , 
         123A.46, or 
         123A.48 must notify the joint powers board one year in advance of 93.28the effective date of the reorganization. Notwithstanding section 
         471.59 or any other law 93.29to the contrary, the board of a district that reorganizes under section 
         123A.45, 
         123A.46, or 93.30123A.48
          may appoint representatives to the joint powers board who will serve on the joint 93.31powers board for two years after the effective date of the reorganization if authorized in 93.32the agreement establishing the joint powers board to govern the cooperative secondary93.33facility. These representatives shall have the same powers as representatives of any other 93.34school district under the joint powers agreement. 93.35    Subd. 4. District procedures. A joint powers board of a secondary district 93.36established under subdivision 2 or a school board of a reorganized district that intends 94.1to apply for a grant must adopt a resolution stating the proposed costs of the project, 94.2the purpose for which the costs are to be incurred, and an estimate of the dates when 94.3the facilities for which the grant is requested will be contracted for and completed. 94.4Applications for the state grants must be accompanied by (a) a copy of the resolution, (b) 94.5a certificate by the clerk and treasurer of the joint powers board showing the current 94.6outstanding indebtedness of each member district, and (c) a certificate by the county 94.7auditor of each county in which a portion of the joint powers district lies showing the 94.8information in the auditor's official records that is required to be used in computing the 94.9debt limit of the district under section 
         475.53, subdivision 4. The clerk's and treasurer's 94.10certificate must show, as to each outstanding bond issue of each member district, the 94.11amount originally issued, the purpose for which issued, the date of issue, the amount 94.12remaining unpaid as of the date of the resolution, and the interest rates and due dates 94.13and amounts of principal thereon. Applications and necessary data must be in the 94.14form prescribed by the commissioner and the rules of the State Board of Education 94.15before December 31, 1999, and after December 30, 1999, in the form prescribed by the 94.16commissioner. Applications must be received by the commissioner by September 1 of an 94.17odd-numbered year. When an application is received, the commissioner shall obtain from 94.18the commissioner of revenue, and from the Public Utilities Commission when required, 94.19the information in their official records that is required to be used in computing the debt 94.20limit of the joint powers district under section 
         475.53, subdivision 4. 94.21    Subd. 5. Award of grants. By November 1 of the odd-numbered year, the 94.22commissioner shall examine and consider all applications for grants, and if any district is 94.23found not qualified, the commissioner shall promptly notify that board.94.24    A grant award is subject to verification by the district as specified in subdivision 94.258. A grant award for a new facility must not be made until the site of the secondary94.26facility has been determined. A grant award to remodel or improve an existing facility 94.27must not be made until the districts have reorganized. If the total amount of the approved 94.28applications exceeds the amount that is or can be made available, the commissioner shall 94.29first award grants to districts that will close at least one existing school building, and then, 94.30to the extent funds remain, allot the available amount equally between the any other94.31approved applicant districts. The commissioner shall promptly certify to each qualified 94.32district the amount, if any, of the grant awarded to it.94.33    Subd. 6. Collocation grant. A group of districts that receives a grant for a new 94.34facility under subdivision 4 is also eligible to receive an additional grant in the amount of 94.35$1,000,000. To receive the additional grant, the group of districts must develop a plan 94.36under subdivision 2, paragraph (d), that provides for the location of a significant number 95.1of noneducational student and community service programs within the cooperative 95.2secondary facility.95.3    Subd. 7. Referendum; bond issue. Within 180 days after being awarded a grant 95.4for a new facility under subdivision 5, the joint powers board must submit the question 95.5of authorizing the borrowing of funds for the secondary facility to the voters of the joint 95.6powers district at a special election, which may be held in conjunction with the annual95.7general election of the school board members of the member districts. The question 95.8submitted must state the total amount of funding needed from all sources. A majority of 95.9those voting in the affirmative on the question is sufficient to authorize the joint powers 95.10board to accept the grant and to issue the bonds on public sale in accordance with95.11according to chapter 475. The clerk of the joint powers board must certify the vote of 95.12the bond election to the commissioner. If the question is approved by the voters, the 95.13commissioner shall notify the approved applicant districts that the grant amount certified 95.14under subdivision 5 is available and appropriated for payment under this subdivision. 95.15If a majority of those voting on the question do not vote in the affirmative, the grant 95.16must be canceled.95.17    Subd. 8. Contract. Each grant must be evidenced by a contract between the board 95.18and the state acting through the commissioner. The contract obligates the state to pay to 95.19the board an amount computed according to subdivision 5, and according to a schedule, 95.20and terms and conditions acceptable to the commissioner of finance.95.21    Subd. 9. Consolidation. A group of districts that operates a cooperative secondary95.22facility that was acquired, constructed, remodeled, or improved under this section and 95.23implements consolidation proceedings according to section 
         123A.48, may propose a 95.24temporary school board structure in the petition or resolution required under section 95.25123A.48, subdivision 2
         . The districts may propose the number of existing school board 95.26members of each district to become members of the board of the consolidated district 95.27and a method to gradually reduce the membership to six or seven. The proposal must 95.28be approved, disapproved, or modified by the state board of education commissioner. 95.29The election requirements of section 
         123A.48, subdivision 20, do not apply to a 95.30proposal approved by the state board. Elections conducted after the effective date of the 95.31consolidation are subject to the Minnesota Election Law. 95.32EFFECTIVE DATE.This section is effective the day following final enactment.95.33    Sec. 5. Minnesota Statutes 2006, section 123B.53, subdivision 1, is amended to read:95.34    Subdivision 1. Definitions. (a) For purposes of this section, the eligible debt service 95.35revenue of a district is defined as follows:96.1    (1) the amount needed to produce between five and six percent in excess of the 96.2amount needed to meet when due the principal and interest payments on the obligations 96.3of the district for eligible projects according to subdivision 2, including the amounts 96.4necessary for repayment of energy loans according to section 
         216C.37 or sections 
         298.29296.5to 
         298.298, debt service loans and capital loans, lease purchase payments under section 96.6126C.40, subdivision 2
         , alternative facilities levies under section 
         123B.59, subdivision 96.75
         ,  paragraph (a), minus96.8    (2) the amount of debt service excess levy reduction for that school year calculated 96.9according to the procedure established by the commissioner.96.10    (b) The obligations in this paragraph are excluded from eligible debt service revenue:96.11    (1) obligations under section 
         123B.61;96.12    (2) the part of debt service principal and interest paid from the taconite environmental 96.13protection fund or Douglas J. Johnson economic protection trust;96.14    (3) obligations issued under Laws 1991, chapter 265, article 5, section 18, as 96.15amended by Laws 1992, chapter 499, article 5, section 24; and96.16    (4) obligations under section 
         123B.62.96.17    (c) For purposes of this section, if a preexisting school district reorganized under 96.18sections 
         123A.35 to 
         123A.43, 
         123A.46, and 
         123A.48 is solely responsible for retirement 96.19of the preexisting district's bonded indebtedness, capital loans or debt service loans, debt 96.20service equalization aid must be computed separately for each of the preexisting districts.96.21    (d) For purposes of this section, the adjusted net tax capacity determined according 96.22to section 
         127A.48 shall be adjusted to include a portion of the tax capacity of property 96.23generally exempted from ad valorem taxes under section 272.02, subdivisions subdivision96.2464 and 65, equal to the product of that tax capacity times the ratio of the eligible debt 96.25service revenue attributed to general obligation bonds to the total eligible debt service 96.26revenue of the district.96.27    Sec. 6. Minnesota Statutes 2006, section 123B.54, is amended to read:96.28123B.54 DEBT SERVICE APPROPRIATION.96.29    (a) $21,624,000 $14,813,000 in fiscal year 2008 and $20,403,000, $11,124,000 in 96.30fiscal year 2009, $8,866,000 in fiscal year 2010, and $6,631,000 in fiscal year 2011 and 96.31later are appropriated from the general fund to the commissioner of education for payment 96.32of debt service equalization aid under section 
         123B.53.96.33    (b) The appropriations in paragraph (a) must be reduced by the amount of any 96.34money specifically appropriated for the same purpose in any year from any state fund.97.1EFFECTIVE DATE.This section is effective for revenue for fiscal year 2009.97.2    Sec. 7. Minnesota Statutes 2006, section 123B.57, subdivision 3, is amended to read:97.3    Subd. 3. Health and safety revenue. A district's health and safety revenue 97.4for a fiscal year equals the district's alternative facilities levy under section 123B.59, 97.5subdivision 5, paragraph (b), plus the greater of zero or:97.6    (1) the sum of (a) the total approved cost of the district's hazardous substance 97.7plan for fiscal years 1985 through 1989, plus (b) the total approved cost of the district's 97.8health and safety program for fiscal year 1990 through the fiscal year to which the levy 97.9is attributable, excluding expenditures funded with bonds issued under section 
         123B.5997.10or 
         123B.62, or chapter 475; certificates of indebtedness or capital notes under section 97.11123B.61
         ; levies under section 
         123B.58, 
         123B.59, 
         123B.63, or 
         126C.40, subdivision 1 or 97.126; and other federal, state, or local revenues, minus 97.13    (2) the sum of (a) the district's total hazardous substance aid and levy for fiscal years 97.141985 through 1989 under sections 
         124.245 and 
         275.125, subdivision 11c, plus (b) the 97.15district's health and safety revenue under this subdivision, for years before the fiscal year 97.16to which the levy is attributable. 97.17EFFECTIVE DATE.This section is effective for revenue for fiscal year 2009.97.18    Sec. 8. Minnesota Statutes 2006, section 123B.63, subdivision 3, is amended to read:97.19    Subd. 3. Capital project levy referendum. A district may levy the local tax 97.20rate approved by a majority of the electors voting on the question to provide funds for 97.21an approved project. The election must take place no more than five years before the 97.22estimated date of commencement of the project. The referendum must be held on a date 97.23set by the board. A referendum for a project not receiving a positive review and comment 97.24by the commissioner under section 
         123B.71 must be approved by at least 60 percent of the 97.25voters at the election. The referendum may be called by the school board and may be held: 97.26    (1) separately, before an election for the issuance of obligations for the project 97.27under chapter 475; or97.28    (2) in conjunction with an election for the issuance of obligations for the project 97.29under chapter 475; or97.30    (3) notwithstanding section 
         475.59, as a conjunctive question authorizing both the 97.31capital project levy and the issuance of obligations for the project under chapter 475. Any 97.32obligations authorized for a project may be issued within five years of the date of the 97.33election. 98.1    The ballot must provide a general description of the proposed project, state the 98.2estimated total cost of the project, state whether the project has received a positive or 98.3negative review and comment from the commissioner, state the maximum amount of the 98.4capital project levy as a percentage of net tax capacity, state the amount that will be raised 98.5by that local tax rate in the first year it is to be levied, and state the maximum number of 98.6years that the levy authorization will apply.98.7    The ballot must contain a textual portion with the information required in this 98.8section and a question stating substantially the following:98.9    "Shall the capital project levy proposed by the board of .......... School District 98.10No. .......... be approved?"98.11    If approved, the amount provided by the approved local tax rate applied to the net 98.12tax capacity for the year preceding the year the levy is certified may be certified for the 98.13number of years, not to exceed ten, approved.98.14    In the event a conjunctive question proposes to authorize both the capital project 98.15levy and the issuance of obligations for the project, appropriate language authorizing the 98.16issuance of obligations must also be included in the question.98.17    The district must notify the commissioner of the results of the referendum.98.18EFFECTIVE DATE.This section is effective July 1, 2007, for elections conducted 98.19on or after that day.98.20    Sec. 9. Minnesota Statutes 2006, section 128D.11, subdivision 3, is amended to read:98.21    Subd. 3. No election. Subject to the provisions of subdivisions 7 to 10, the school 98.22district may also by a two-thirds majority vote of all the members of its board of education 98.23and without any election by the voters of the district, issue and sell in each calendar year 98.24general obligation bonds of the district in an amount not to exceed 5-1/10 per cent of the 98.25net tax capacity of the taxable property in the district (plus, for calendar years 1990 to 98.262003, an amount not to exceed $7,500,000, and for calendar years 2004 to 20082016 an 98.27amount not to exceed $15,000,000; with an additional provision that any amount of bonds 98.28so authorized for sale in a specific year and not sold can be carried forward and sold in 98.29the year immediately following).98.30EFFECTIVE DATE.This section is effective the day following final enactment.98.31    Sec. 10. Minnesota Statutes 2006, section 272.02, subdivision 64, is amended to read:98.32    Subd. 64. Job opportunity building zone property. (a) Improvements to real 98.33property, and personal property, classified under section 
         273.13, subdivision 24, and 99.1located within a job opportunity building zone, designated under section 
         469.314, are 99.2exempt from ad valorem taxes levied under chapter 275.99.3    (b) Improvements to real property, and tangible personal property, of an agricultural 99.4production facility located within an agricultural processing facility zone, designated 99.5under section 
         469.314, is exempt from ad valorem taxes levied under chapter 275.99.6    (c) For property to qualify for exemption under paragraph (a), the occupant must be 99.7a qualified business, as defined in section 
         469.310.99.8    (d) The exemption applies beginning for the first assessment year after designation 99.9of the job opportunity building zone by the commissioner of employment and economic 99.10development. The exemption applies to each assessment year that begins during the 99.11duration of the job opportunity building zone. To be exempt, the property must be 99.12occupied by July 1 of the assessment year by a qualified business that has signed the 99.13business subsidy agreement and relocation agreement, if required, by July 1 of the 99.14assessment year. This exemption does not apply to:99.15    (1) the levy under section 
         475.61 or similar levy provisions under any other law to 99.16pay general obligation bonds; or99.17    (2) a levy under section 126C.17, if the levy was approved by the voters before the 99.18designation of the job opportunity building zoneother school district levies included in 99.19the debt service levy of the district under section 123B.55.99.20EFFECTIVE DATE.This section is effective for taxes payable in 2008.99.21    Sec. 11. SCHOOL TECHNOLOGY AND OPERATING CAPITAL AID.99.22    For fiscal years 2008, and 2009 only, school technology and operating capital aid 99.23equals $87 times the district's adjusted marginal cost pupil units for that fiscal year. 99.24This aid must only be used for the purposes of Minnesota Statutes, section 126C.10, 99.25subdivision 14.99.26EFFECTIVE DATE.This section is effective the day following final enactment.99.27    Sec. 12. BONDING AUTHORIZATION.99.28    To provide funds for the acquisition or betterment of school facilities, Independent 99.29School District No. 625, St. Paul, may by two-thirds majority vote of all the members of 99.30the board of directors issue general obligation bonds in one or more series for calendar 99.31years 2008 through 2016, as provided in this section. The aggregate principal amount of 99.32any bonds issued under this section for each calendar year must not exceed $15,000,000. 99.33Issuance of the bonds is not subject to Minnesota Statutes, section 475.58 or 475.59. 100.1The bonds must otherwise be issued as provided in Minnesota Statutes, chapter 475. 100.2The authority to issue bonds under this section is in addition to any bonding authority 100.3authorized by Minnesota Statutes, chapter 123B, or other law. The amount of bonding 100.4authority authorized under this section must be disregarded in calculating the bonding 100.5limit of Minnesota Statutes, chapter 123B, or any other law other than Minnesota Statutes, 100.6section 475.53, subdivision 4.100.7EFFECTIVE DATE.This section is effective the day following final enactment.100.8    Sec. 13. TAX LEVY FOR DEBT SERVICE.100.9    To pay the principal of and interest on bonds issued under section 12, Independent 100.10School District No. 625, St. Paul, must levy a tax annually in an amount sufficient 100.11under Minnesota Statutes, section 475.61, subdivisions 1 and 3, to pay the principal of 100.12and interest on the bonds. The tax authorized under this section is in addition to the 100.13taxes authorized to be levied under Minnesota Statutes, chapter 123B, 124D, or 126C, or 100.14other law.100.15EFFECTIVE DATE.This section is effective the day following final enactment.100.16    Sec. 14. ADMINISTRATIVE LEASE LEVY; SPRING LAKE PARK.100.17    Notwithstanding the instructional purposes limitation of Minnesota Statutes, section 100.18126C.40, subdivision 1, Independent School District No. 16, Spring Lake Park, may 100.19lease administrative space under Minnesota Statutes, section 126C.40, subdivision 1, if 100.20the district can demonstrate to the satisfaction of the commissioner of education that 100.21the administrative space is less expensive than instruction space that the district would 100.22otherwise lease. A school district may not levy under this section for more than five years. 100.23The commissioner must deny this levy authority unless the district passes a resolution 100.24stating its intent to lease instructional space under Minnesota Statutes, section 126C.40, 100.25subdivision 1, if the commissioner does not grant authority under this section. The 100.26resolution must also certify that a lease of administrative space under this section is less 100.27expensive than the district's proposed instructional lease. Levy authority under this section 100.28shall not exceed the total levy authority under Minnesota Statutes, section 126C.40, 100.29subdivision 1, paragraph (e). 100.30EFFECTIVE DATE.This section is effective beginning with revenue for taxes 100.31payable in 2008.100.32    Sec. 15. HEALTH AND SAFETY REVENUE; CLEARBROOK-GONVICK.101.1    Notwithstanding Minnesota Statutes, section 123B.57, Independent School District 101.2No. 2311, Clearbrook-Gonvick, may use health and safety revenue for the demolition of 101.3the Gonvick school building. The district must recognize the revenue under this section 101.4in fiscal year 2008.101.5EFFECTIVE DATE.This section is effective for taxes payable in 2008.101.6    Sec. 16. APPROPRIATIONS.101.7    Subdivision 1.Department of Education.The sums indicated in this section are 101.8appropriated from the general fund to the Department of Education for the fiscal years 101.9designated.101.10    Subd. 2.Health and safety revenue.For health and safety aid according to 101.11Minnesota Statutes, section 123B.57, subdivision 5:

101.12$190,000.....2008101.13$179,000.....2009

101.14    The 2008 appropriation includes $20,000 for 2007 and $170,000 for 2008.101.15    The 2009 appropriation includes $18,000 for 2008 and $161,000 for 2009.101.16    Subd. 3.Debt service equalization.For debt service aid according to Minnesota 101.17Statutes, section 123B.53, subdivision 6:

101.18$ 14,813,000.....2008101.19$11,124,000.....2009

101.20    The 2008 appropriation includes $1,767,000 for 2007 and $13,046,000 for 2008.101.21    The 2009 appropriation includes $1,450,000 for 2008 and $9,674,000 for 2009.101.22    Subd. 4.Alternative facilities bonding aid.For alternative facilities bonding aid, 101.23according to Minnesota Statutes, section 123B.59, subdivision 1:

101.24$19,287,000.....2008101.25$19,287,000.....2009

101.26    The 2008 appropriation includes $1,928,000 for 2007 and $17,359,000 for 2008.101.27    The 2009 appropriation includes $1,928,000 for 2008 and $17,359,000 for 2009.101.28    Subd. 5.Equity in telecommunications access.For equity in telecommunications 101.29access:

101.30$7,622,000.....2008101.31$8,743,000.....2009

102.1    If the appropriation amount is insufficient, the commissioner shall reduce the 102.2reimbursement rate in Minnesota Statutes, section 125B.26, subdivisions 4 and 5, and the 102.3revenue for fiscal years 2008 and 2009 shall be prorated.102.4    Any balance in the first year does not cancel but is available in the second year.102.5    The base appropriation for fiscal year 2010 and later is $3,750,000. 102.6    Subd. 6.Deferred maintenance aid.For deferred maintenance aid, according to 102.7Minnesota Statutes, section 123B.591, subdivision 4:

102.8$3,290,000.....2008102.9$2,667,000.....2009

102.10    The 2008 appropriation includes $0 for 2007 and $3,290,000 for 2008.102.11    The 2009 appropriation includes $365,000 for 2008 and $2,302,000 for 2009.102.12    Subd. 7.Rocori school district.For Rocori, Independent School District No. 102.13750, for Project Serv:

102.14$53,000.....2008

102.15    Subd. 8.School technology and operating capital aid grants.For school 102.16technology and operating capital grants under section 11:

102.17$82,965,000.....2008102.18$82,734,000.....2009

102.19    This is a onetime appropriation.102.20    Subd. 9.Eden Valley-Watkins; environmental remediation.For a grant to 102.21Independent School District No. 463, Eden Valley-Watkins, to recover the amount actually 102.22spent on environmental remediation efforts related to the cleanup of a mercury spill.

102.23$126,000.....2008

102.24ARTICLE 5102.25NUTRITION AND ACCOUNTING102.26    Section 1. Minnesota Statutes 2006, section 123B.10, subdivision 1, is amended to read:102.27    Subdivision 1. Budgets; form of notification.(a) Every board must publish revenue 102.28and expenditure budgets for the current year and the actual revenues, expenditures, fund 102.29balances for the prior year and projected fund balances for the current year in a form 102.30prescribed by the commissioner within one week of the acceptance of the final audit by 102.31the board, or November 30, whichever is earlier. The forms prescribed must be designed 102.32so that year to year comparisons of revenue, expenditures and fund balances can be made. 103.1These budgets, reports of revenue, expenditures and fund balances must be published in 103.2a qualified newspaper of general circulation in the district or on the district's official 103.3Web site. If published on the district's official Web site, the district must also publish an 103.4announcement in a qualified newspaper of general circulation in the district that includes 103.5the Internet address where the information has been posted.103.6    (b) A school board annually must notify the public of its revenue, expenditures, fund 103.7balances, and other relevant budget information. The board must include the budget 103.8information required by this section in the materials provided as a part of its truth in 103.9taxation hearing, post the materials in a conspicuous place on the district's official Web 103.10site, including a link to the district's school report card on the Department of Education's 103.11Web site, and publish the information in a qualified newspaper of general circulation 103.12in the district.103.13    Sec. 2. Minnesota Statutes 2006, section 123B.77, subdivision 4, is amended to read:103.14    Subd. 4. Budget approval. Prior to July 1 of each year, the board of each district 103.15must approve and adopt its revenue and expenditure budgets for the next school year. 103.16The budget document so adopted must be considered an expenditure-authorizing or 103.17appropriations document. No funds shall be expended by any board or district for any 103.18purpose in any school year prior to the adoption of the budget document which authorizes 103.19that expenditure, or prior to an amendment to the budget document by the board to 103.20authorize the expenditure. Expenditures of funds in violation of this subdivision shall be 103.21considered unlawful expenditures. Prior to the appropriation of revenue for the next 103.22school year in the initial budget, the board shall inform the principal or other responsible 103.23administrative authority of each site of the amount of general education and referendum 103.24revenue that the Department of Education estimates will be generated by the pupils 103.25in attendance at each site. For purposes of this subdivision, a district may adjust the 103.26department's estimates for school building openings, school building closings, changes 103.27in attendance area boundaries, or other changes in programs or student demographics 103.28not reflected in the department's calculations. A district must report to the department 103.29any adjustments it makes according to this subdivision in the department's estimates 103.30of compensatory revenue generated by the pupils in attendance at each site, and the 103.31department must use the adjusted compensatory revenue estimates in preparing the report 103.32required under section 123B.76, subdivision 3, paragraph (c).103.33    Sec. 3. Minnesota Statutes 2006, section 123B.79, subdivision 8, is amended to read:104.1    Subd. 8. Account transfer for reorganizing districts. A district that has 104.2reorganized according to sections 
         123A.35 to 
         123A.43, 
         123A.46, or 
         123A.48, or has 104.3conducted a successful referendum on the question of combination under section 104.4123A.37, subdivision 2
         , or consolidation under section 
         123A.48, subdivision 15, or has 104.5been assigned an identification number by the commissioner under section 
         123A.48, 104.6subdivision 16
         , may make permanent transfers between any of the funds or accounts in 104.7the newly created or enlarged district with the exception of the debt redemption fund, 104.8food service fund, and health and safety account of the capital expenditure fund. Fund 104.9transfers under this section may be made for up to one year prior to the effective date of 104.10combination or consolidation by the consolidating boards and during the year following 104.11the effective date of reorganization by the consolidated board. The newly formed board of 104.12the combined district may adopt a resolution on or before August 30 of the year of the 104.13reorganization authorizing a transfer among accounts or funds of the previous independent 104.14school districts which transfer or transfers shall be reported in the affected districts' 104.15audited financial statements for the year immediately preceding the consolidation. 104.16    Sec. 4. Minnesota Statutes 2006, section 123B.79, is amended by adding a subdivision 104.17to read:104.18    Subd. 9.Elimination of reserve accounts.A school board shall eliminate all 104.19reserve accounts established in the school district's general fund under Minnesota Statutes 104.20before July 1, 2006, for which no specific authority remains in statute as of June 30, 104.212007. Any balance in the district's reserved for bus purchases account as of June 30, 104.222007, shall be transferred to the reserved account for operating capital in the school 104.23district's general fund. Any balance in other reserved accounts established in the school 104.24district's general fund under Minnesota Statutes before July 1, 2006, for which no specific 104.25authority remains in statute as of June 30, 2007, shall be transferred to the school district's 104.26unreserved general fund balance. A school board may, upon adoption of a resolution by 104.27the school board, establish a designated account for any program for which a reserved 104.28account has been eliminated.104.29EFFECTIVE DATE.This section is effective June 30, 2007.104.30    Sec. 5. Minnesota Statutes 2006, section 124D.111, subdivision 1, is amended to read:104.31    Subdivision 1. School lunch aid computation. Each school year, the state must pay 104.32participants in the national school lunch program the amount of 
         10.5 12 cents for each full 104.33paid, reduced, and free student lunch served to students.105.1    Sec. 6. Minnesota Statutes 2006, section 126C.15, subdivision 2, is amended to read:105.2    Subd. 2. Building allocation. (a) A district must allocate its compensatory revenue 105.3to each school building in the district where the children who have generated the revenue 105.4are served unless the school district has received permission under section 50 to allocate 105.5compensatory revenue according to student performance measures developed by the 105.6school board.105.7    (b) Notwithstanding paragraph (a), a district may allocate up to five percent of the 105.8amount of compensatory revenue that the district receives to school sites according to a 105.9plan adopted by the school board.105.10    (c) For the purposes of this section and section 
         126C.05, subdivision 3, "building" 105.11means education site as defined in section 
         123B.04, subdivision 1.105.12    (d) If the pupil is served at a site other than one owned and operated by the district, 105.13the revenue shall be paid to the district and used for services for pupils who generate the 105.14revenue.105.15    (e) A district with school building openings, school building closings, changes 105.16in attendance area boundaries, or other changes in programs or student demographics 105.17between the prior year and the current year may reallocate compensatory revenue among 105.18sites to reflect these changes. A district must report to the department any adjustments it 105.19makes according to this paragraph and the department must use the adjusted compensatory 105.20revenue allocations in preparing the report required under section 123B.76, subdivision 3, 105.21paragraph (c).105.22    Sec. 7. Minnesota Statutes 2006, section 126C.41, is amended by adding a subdivision 105.23to read:105.24    Subd. 6.Levy authority for unfunded severance and retirement costs.(a) A 105.25school district qualifies for eligibility under this section if the district:105.26    (1) participated in the cooperative secondary facilities program;105.27    (2) consolidated with at least two other school districts; and105.28    (3) has unfunded severance or retirement costs.105.29    (b) An eligible school district may annually levy up to $150,000 for unfunded 105.30severance or retirement costs. This levy authority expires after taxes payable in 2017.105.31    (c) A school district that levies under this section must reserve the proceeds of the 105.32levy and spend those amounts only for unfunded severance or retirement costs.105.33EFFECTIVE DATE.This section is effective for taxes payable in 2008.105.34    Sec. 8. Minnesota Statutes 2006, section 126C.48, subdivision 2, is amended to read:106.1    Subd. 2. Notice to commissioner; forms. By October 7 of each year each 106.2district must notify the commissioner of the proposed levies in compliance with the levy 106.3limitations of this chapter and chapters 120B, 122A, 123A, 123B, 124D, 125A, 127A, and 106.4136D. A school district that has reached an agreement with its home county auditor to 106.5extend the date of certification of its proposed levy under section 275.065, subdivision 1, 106.6must submit its notice of proposed levies to the commissioner no later than October 10 of 106.7each year. By January 7 of each year each district must notify the commissioner of the 106.8final levies certified. The commissioner shall prescribe the form of these notifications and 106.9may request any additional information necessary to compute certified levy amounts.106.10    Sec. 9. Minnesota Statutes 2006, section 275.065, subdivision 1, is amended to read:106.11    Subdivision 1. Proposed levy. (a) Notwithstanding any law or charter to the 106.12contrary, on or before September 15, each taxing authority, other than a school district, 106.13shall adopt a proposed budget and shall certify to the county auditor the proposed or, in 106.14the case of a town, the final property tax levy for taxes payable in the following year.106.15    (b) On or before September 30, each school district that has not mutually agreed 106.16with its home county to extend this date shall certify to the county auditor the proposed 106.17property tax levy for taxes payable in the following year. Each school district that has 106.18agreed with its home county to delay the certification of its proposed property tax levy 106.19must certify its proposed property tax levy for the following year no later than October 106.207. The school district shall certify the proposed levy as:106.21    (1) a specific dollar amount by school district fund, broken down between 106.22voter-approved and non-voter-approved levies and between referendum market value 106.23and tax capacity levies; or106.24    (2) the maximum levy limitation certified by the commissioner of education 106.25according to section   
         126C.48, subdivision 1. 106.26    (c) If the board of estimate and taxation or any similar board that establishes 106.27maximum tax levies for taxing jurisdictions within a first class city certifies the maximum 106.28property tax levies for funds under its jurisdiction by charter to the county auditor by 106.29September 15, the city shall be deemed to have certified its levies for those taxing 106.30jurisdictions.106.31    (d) For purposes of this section, "taxing authority" includes all home rule and 106.32statutory cities, towns, counties, school districts, and special taxing districts as defined 106.33in section   
         275.066. Intermediate school districts that levy a tax under chapter 124 or 106.34136D, joint powers boards established under sections   
         123A.44 to   
         123A.446, and Common 107.1School Districts No. 323, Franconia, and No. 815, Prinsburg, are also special taxing 107.2districts for purposes of this section. 107.3    Sec. 10. Minnesota Statutes 2006, section 275.065, subdivision 1a, is amended to read:107.4    Subd. 1a. Overlapping jurisdictions. In the case of a taxing authority lying in 107.5two or more counties, the home county auditor shall certify the proposed levy and the 107.6proposed local tax rate to the other county auditor by October 5, unless the home county 107.7has agreed to delay the certification of its proposed property tax levy, in which case the 107.8home county auditor shall certify the proposed levy and the proposed local tax rate to the 107.9other county auditor by October 10. The home county auditor must estimate the levy or 107.10rate in preparing the notices required in subdivision 3, if the other county has not certified 107.11the appropriate information. If requested by the home county auditor, the other county 107.12auditor must furnish an estimate to the home county auditor.107.13    Sec. 11. PLAINVIEW-ELGIN-MILLVILLE; CONSOLIDATED DISTRICT 107.14FUND BALANCE CALCULATIONS.107.15    Subdivision 1.Fiscal year 2007 replacement aid.Independent School District 107.16No. 2899, Plainview-Elgin-Millville, is eligible for replacement aid to offset its excess 107.17fund balance penalty for fiscal year 2007.107.18    Subd. 2.Fiscal years 2008 and 2009.Upon receipt of appropriate documentation 107.19from Independent School District No. 2899, Plainview-Elgin-Millville, the Department of 107.20Education must adjust the district's three-year adjusted average fund balances required 107.21under Minnesota Statutes, sections 124D.135, 124D.16 and 124D.20. The department 107.22shall adjust the fiscal year 2006 account balances reported by former Independent School 107.23Districts Nos. 806, Elgin-Millville, and 810, Plainview, to reflect any permanent account 107.24of fund transfers made under Minnesota Statutes, section 123B.79.107.25EFFECTIVE DATE.This section is effective the day following final enactment.107.26    Sec. 12. FUND TRANSFER.107.27    Subdivision 1.Brainerd.Notwithstanding Minnesota Statutes, section 123B.79 107.28or 123B.80, on June 30, 2007, Independent School District No. 181, Brainerd, may 107.29permanently transfer up to $750,000 from its reserved for operating capital account to its 107.30undesignated general fund balance without making a levy reduction.107.31    Subd. 2.Campbell-Tintah.Notwithstanding Minnesota Statutes, section 123B.79 107.32or 123B.80, on June 30, 2007, Independent School District No. 852, Campbell-Tintah, 108.1may permanently transfer up to $100,000 from its reserved for operating capital account 108.2to its undesignated general fund without making a levy reduction.108.3    Subd. 3.Comfrey.Notwithstanding Minnesota Statutes, section 123B.79 108.4or 123B.80, on June 30, 2007, Independent School District No. 81, Comfrey, may 108.5permanently transfer up to $250,000 from its reserved for operating capital account to its 108.6undesignated general fund balance without making a levy reduction.108.7    Subd. 4.Floodwood.Notwithstanding Minnesota Statutes, section 123B.79 108.8or 123B.80, on June 30, 2007, Independent School District No. 698, Floodwood, 108.9may transfer up to $227,000 from its reserved for disabled accessibility account to its 108.10undesignated general fund balance without making a levy reduction.108.11    Subd. 5.International Falls.Notwithstanding Minnesota Statutes, section 123B.79 108.12or 123B.80, on June 30, 2007, Independent School District No. 361, International Falls, 108.13may permanently transfer up to $100,000 from its reserved for operating capital account 108.14to its undesignated general fund balance without making a levy reduction.108.15    Subd. 6.Jackson County Central.Notwithstanding Minnesota Statutes, section 108.16123B.79 or 123B.80, on June 30, 2007, Independent School District No. 2895, Jackson 108.17County Central, may permanently transfer up to $300,000 from its reserved for operating 108.18capital account to its undesignated general fund balance without making a levy reduction.108.19    Subd. 7.Red Rock Central.Notwithstanding Minnesota Statutes, section 123B.79 108.20or 123B.80, on June 30, 2007, Independent School District No. 2884, Red Rock Central, 108.21may permanently transfer up to $81,000 from its reserved for disabled accessibility 108.22account to its undesignated general fund balance without making a levy reduction. 108.23    Subd. 8.Windom.Notwithstanding Minnesota Statutes, section 123B.79 or 108.24123B.80, on June 30, 2007, Independent School District No. 177, Windom, may transfer 108.25up to $50,000 from its reserved for operating capital account to its undesignated general 108.26fund balance without making a levy reduction.108.27EFFECTIVE DATE.This section is effective the day following final enactment.108.28    Sec. 13. APPROPRIATIONS.108.29    Subdivision 1.Department of Education.The sums indicated in this section are 108.30appropriated from the general fund to the Department of Education for the fiscal years 108.31designated.108.32    Subd. 2.School lunch.For school lunch aid according to Minnesota Statutes, 108.33section 124D.111, and Code of Federal Regulations, title 7, section 210.17:

109.1$12,022,000.....2008109.2$12,166,000.....2009

109.3    Subd. 3.Traditional school breakfast; kindergarten milk.For traditional school 109.4breakfast aid and kindergarten milk under Minnesota Statutes, sections 124D.1158 and 109.5124D.118:

109.6$5,460,000.....2008109.7$5,695,000.....2009

109.8    Subd. 4.Summer food service replacement aid.For summer food service 109.9replacement aid under Minnesota Statutes, section 124D.119:

109.10$150,000.....2008109.11$150,000.....2009

109.12    Subd. 5.Plainview-Elgin-Millville fund balance replacement aid.109.13    For fund balance replacement aid for Independent School District No. 2899, 109.14Plainview-Elgin-Millville:

109.15$17,000.....2008

109.16    This is a onetime appropriation.109.17    Sec. 14.  REPEALER.109.18Minnesota Statutes 2006, section 123B.749, is repealed.109.19ARTICLE 6109.20LIBRARIES109.21    Section 1. Minnesota Statutes 2006, section 134.31, is amended by adding a 109.22subdivision to read:109.23    Subd. 4a.Services to the blind and physically handicapped.The Minnesota 109.24Department of Education shall provide specialized services to the blind and physically 109.25handicapped through the Minnesota Library for the Blind and Physically Handicapped 109.26under a cooperative plan with the National Library Services for the Blind and Physically 109.27Handicapped of the Library of Congress.109.28    Sec. 2. DEPARTMENT OF EDUCATION; LIBRARY APPROPRIATIONS.110.1    Subdivision 1.Department of Education.The sums indicated in this section are 110.2appropriated from the general fund to the Department of Education for the fiscal years 110.3designated.110.4    Subd. 2.Basic system support.For basic system support grants under Minnesota 110.5Statutes, section 134.355:

110.6$9,182,000.....2008110.7$13,138,000.....2009

110.8    The 2008 appropriation includes $857,000 for 2007 and $8,325,000 for 2008.110.9    The 2009 appropriation includes $925,000 for 2008 and $12,213,000 for 2009.110.10    Subd. 3.Multicounty, multitype library systems.For grants under Minnesota 110.11Statutes, sections 134.353 and 134.354, to multicounty, multitype library systems:

110.12$1,260,000.....2008110.13$1,300,000.....2009

110.14    The 2008 appropriation includes $90,000 for 2007 and $1,170,000 for 2008.110.15    The 2009 appropriation includes $130,000 for 2008 and $1,170,000 for 2009.110.16    Subd. 4.Electronic library for Minnesota.For statewide licenses to online 110.17databases selected in cooperation with the Minnesota Office of Higher Education for 110.18school media centers, public libraries, state government agency libraries, and public 110.19or private college or university libraries:

110.20$900,000.....2008110.21$900,000.....2009

110.22    Any balance in the first year does not cancel but is available in the second year.110.23    Subd. 5.Regional library telecommunications aid.For regional library 110.24telecommunications aid under Minnesota Statutes, section 134.355:

110.25$2,190,000.....2008110.26$2,300,000.....2009

110.27    The 2008 appropriation includes $120,000 for 2007 and $2,070,000 for 2008.110.28    The 2009 appropriation includes $230,000 for 2008 and $2,070,000 for 2009.110.29    Subd. 6.Hennepin County and Minneapolis library systems merger.For costs 110.30attributable to the library system merger:

110.31$4,500,000.....2008

110.32    If the Hennepin County and Minneapolis city library systems do not merge, any 110.33unexpended balance remaining in this appropriation must be allocated to increase the 111.1fiscal year 2008 entitlement for Basic System Support Grants under Minnesota Statutes, 111.2section 134.355.111.3    This appropriation is available through June 30, 2009.111.4    This is a onetime appropriation.111.5ARTICLE 7111.6STATE AGENCIES111.7    Section 1. [127A.065] CROSS-SUBSIDY REPORT.111.8    By January 10, the commissioner of education shall submit an annual report to the 111.9legislative committees having jurisdiction over kindergarten through grade 12 education 111.10on the amount each district is cross-subsidizing special education costs with general 111.11education revenue.111.12    Sec. 2. Minnesota Statutes 2006, section 517.08, subdivision 1c, is amended to read:111.13    Subd. 1c. Disposition of license fee. (a) Of the marriage license fee collected 111.14pursuant to subdivision 1b, paragraph (a), $15 must be retained by the county. The local 111.15registrar must pay $85 to the commissioner of finance to be deposited as follows:111.16    (1) $50 in the general fund;111.17    (2) $3 in the state government special revenue fund to be appropriated to the 111.18commissioner of education public safety for parenting time centers under section 
         119A.37;111.19    (3) $2 in the special revenue fund to be appropriated to the commissioner of health 111.20for developing and implementing the MN ENABL program under section 
         145.9255;111.21    (4) $25 in the special revenue fund is appropriated to the commissioner of 111.22employment and economic development for the displaced homemaker program under 111.23section 
         116L.96; and111.24    (5) $5 in the special revenue fund is appropriated to the commissioner of human 111.25services for the Minnesota Healthy Marriage and Responsible Fatherhood Initiative under 111.26section 
         256.742.111.27    (b) Of the $30 fee under subdivision 1b, paragraph (b), $15 must be retained by the 111.28county. The local registrar must pay $15 to the commissioner of finance to be deposited 111.29as follows:111.30    (1) $5 as provided in paragraph (a), clauses (2) and (3); and111.31    (2) $10 in the special revenue fund is appropriated to the commissioner of 111.32employment and economic development for the displaced homemaker program under 111.33section 
         116L.96.112.1    (c) The increase in the marriage license fee under paragraph (a) provided for in Laws 112.22004, chapter 273, and disbursement of the increase in that fee to the special fund for the 112.3Minnesota Healthy Marriage and Responsible Fatherhood Initiative under paragraph (a), 112.4clause (5), is contingent upon the receipt of federal funding under United States Code, title 112.542, section 1315, for purposes of the initiative.112.6    Sec. 3. RULEMAKING AUTHORITY; CAREER AND TECHNICAL 112.7EDUCATION.112.8    The commissioner of education shall adopt rules under Minnesota Statutes, chapter 112.914, for the administration of career and technical education programs for grades 7 through 112.1012 under Minnesota Statutes, sections 124D.452, 124D.4531, and 124D.454, to ensure 112.11that the career and technical levy and programs can be administered to serve students 112.12under the current state and local organizational structures.112.13EFFECTIVE DATE.This section is effective the day following final enactment.112.14    Sec. 4. APPROPRIATIONS; DEPARTMENT OF EDUCATION.112.15    Subdivision 1.Department of Education.Unless otherwise indicated, the sums 112.16indicated in this section are appropriated from the general fund to the Department of 112.17Education for the fiscal years designated.112.18    Subd. 2.Department.(a) For the Department of Education:

112.19$22,169,000.....2008112.20$22,653,000.....2009

112.21    Any balance in the first year does not cancel but is available in the second year.112.22    (b) $7,000 in fiscal year 2008 is for GRAD test rulemaking.112.23    (c) $7,000 in fiscal year 2008 is for rulemaking under section 3.112.24    (d) $40,000 each year is for an early hearing loss intervention coordinator under 112.25Minnesota Statutes, section 125A.63, subdivision 5.112.26    (e) $260,000 each year is for the Minnesota Children's Museum.112.27    (f) $41,000 each year is for the Minnesota Academy of Science.112.28    (g) $619,000 in fiscal year 2008 and $632,000 in fiscal year 2009 are for the Board 112.29of Teaching.112.30    (h) $163,000 in fiscal year 2008 and $171,000 in fiscal year 2009 are for the Board 112.31of School Administrators.112.32    (i) $50,000 each year is for the Duluth Children's Museum.113.1    (j) The expenditures of federal grants and aids as shown in the biennial budget 113.2document and its supplements are approved and appropriated and shall be spent as 113.3indicated.113.4    (k) None of the amounts appropriated under this subdivision may be used for 113.5Minnesota's Washington, D.C., office.113.6    Sec. 5. APPROPRIATIONS; MINNESOTA STATE ACADEMIES.113.7    The sums indicated in this section are appropriated from the general fund to the 113.8Minnesota State Academies for the Deaf and the Blind for the fiscal years designated:

113.9$ 11,788,000.....2008113.10$ 11,915,000.....2009

113.11    Any balance in the first year does not cancel but is available in the second year.113.12    Sec. 6. APPROPRIATIONS; PERPICH CENTER FOR ARTS EDUCATION.113.13    The sums indicated in this section are appropriated from the general fund to the 113.14Perpich Center for Arts Education for the fiscal years designated:

113.15$ 6,929,000.....2008113.16$7,090,000.....2009

113.17    Any balance in the first year does not cancel but is available in the second year.113.18    Sec. 7. APPROPRIATIONS; DEPARTMENT OF PUBLIC SAFETY.113.19    The sums indicated in this section are appropriated from the state government 113.20special revenue fund to the Department of Public Safety for the fiscal years designated to 113.21fund parenting time centers as described in Minnesota Statutes, section 119A.37:

113.22$96,000.....2008113.23$96,000.....2009

113.24ARTICLE 8113.25PUPIL TRANSPORTATION STANDARDS113.26    Section 1. Minnesota Statutes 2006, section 123B.88, subdivision 12, is amended to 113.27read:113.28    Subd. 12. Early childhood family education participants. Districts may provide 113.29bus transportation along regular school bus routes when space is available for participants 113.30in early childhood family education programs and school readiness programs if these 113.31services do not result in an increase in the district's expenditures for transportation. 114.1The costs allocated to these services, as determined by generally accepted accounting 114.2principles, shall be considered part of the authorized cost for regular transportation for 114.3the purposes of section 
         123B.92. 114.4EFFECTIVE DATE.This section is effective the day following final enactment 114.5and applies for fiscal year 2007 and later.114.6    Sec. 2. Minnesota Statutes 2006, section 123B.90, subdivision 2, is amended to read:114.7    Subd. 2. Student training. (a) Each district must provide public school pupils 114.8enrolled in kindergarten through grade 10 with age-appropriate school bus safety training, 114.9as described in this section, of the following concepts:114.10    (1) transportation by school bus is a privilege and not a right;114.11    (2) district policies for student conduct and school bus safety;114.12    (3) appropriate conduct while on the school bus;114.13    (4) the danger zones surrounding a school bus;114.14    (5) procedures for safely boarding and leaving a school bus;114.15    (6) procedures for safe street or road crossing; and114.16    (7) school bus evacuation.114.17    (b) Each nonpublic school located within the district must provide all nonpublic 114.18school pupils enrolled in kindergarten through grade 10 who are transported by school 114.19bus at public expense and attend school within the district's boundaries with training as 114.20required in paragraph (a).114.21    (c) Students enrolled in kindergarten through grade 6 who are transported by school 114.22bus and are enrolled during the first or second week of school must receive the school bus 114.23safety training competencies by the end of the third week of school. Students enrolled in 114.24grades 7 through 10 who are transported by school bus and are enrolled during the first or 114.25second week of school and have not previously received school bus safety training must 114.26receive the training or receive bus safety instructional materials by the end of the sixth 114.27week of school. Students taking driver's training instructional classes and other students in 114.28grades 9 and 10 must receive training in the laws and proper procedures when operating a 114.29motor vehicle in the vicinity of a school bus as required by section 169.446, subdivisions 2 114.30and 3. Students enrolled in kindergarten through grade 10 who enroll in a school after the 114.31second week of school and are transported by school bus and have not received training 114.32in their previous school district shall undergo school bus safety training or receive bus 114.33safety instructional materials within four weeks of the first day of attendance. Upon 114.34request of the superintendent of schools, the school transportation safety director in each 114.35district must certify to the superintendent of schools annually that all students transported 115.1by school bus within the district have received the school bus safety training according to 115.2this section. Upon request of the superintendent of the school district where the nonpublic 115.3school is located, the principal or other chief administrator of each nonpublic school must 115.4certify annually to the school transportation safety director of the district in which the 115.5school is located that the school's students transported by school bus at public expense 115.6have received training according to this section.115.7    (d) A district and a nonpublic school with students transported by school bus at 115.8public expense may provide kindergarten pupils with bus safety training before the first 115.9day of school.115.10    (e) A district and a nonpublic school with students transported by school bus at 115.11public expense may also provide student safety education for bicycling and pedestrian 115.12safety, for students enrolled in kindergarten through grade 5.115.13    (f) A district and a nonpublic school with students transported by school bus at 115.14public expense must make reasonable accommodations for the school bus safety training 115.15of pupils known to speak English as a second language and pupils with disabilities.115.16    (g) The district and a nonpublic school with students transported by school bus at 115.17public expense must provide students enrolled in kindergarten through grade 3 school bus 115.18safety training twice during the school year.115.19    (h) A district and a nonpublic school with students transported by school bus at public 115.20expense must conduct a school bus evacuation drill at least once during the school year.115.21EFFECTIVE DATE.This section is effective July 1, 2007.115.22    Sec. 3. Minnesota Statutes 2006, section 169.01, is amended by adding a subdivision 115.23to read:115.24    Subd. 92.Cellular phone."Cellular phone" means a cellular, analog, wireless, or 115.25digital telephone capable of sending or receiving telephone or text messages without 115.26an access line for service.115.27    Sec. 4. Minnesota Statutes 2006, section 169.443, is amended by adding a subdivision 115.28to read:115.29    Subd. 9.Personal cellular phone call prohibition.A school bus driver may not 115.30operate a school bus while communicating over, or otherwise operating, a cellular phone 115.31for personal reasons, whether hand-held or hands free, when the vehicle is in motion.115.32EFFECTIVE DATE.This section is effective July 1, 2007.116.1    Sec. 5. Minnesota Statutes 2006, section 169.447, subdivision 2, is amended to read:116.2    Subd. 2. Driver seat belt.New School buses and Head Start buses manufactured 116.3after December 31, 1994, must be equipped with driver seat belts and seat belt assemblies 116.4of the type described in section 
         169.685, subdivision 3. School bus drivers and Head 116.5Start bus drivers must use these seat belts. 116.6EFFECTIVE DATE.This section is effective July 1, 2007.116.7    Sec. 6. Minnesota Statutes 2006, section 169.4501, subdivision 1, is amended to read:116.8    Subdivision 1. National standards adopted. Except as provided in sections 116.9169.4502
          and 
         169.4503, the construction, design, equipment, and color of types A, B, C, 116.10and D and multifunctional school activity bus school buses used for the transportation 116.11of school children shall meet the requirements of the "bus chassis standards" and "bus 116.12body standards" in the 2000 2005 edition of the "National School Transportation 116.13Specifications and Procedures" adopted by the National Conference Congress on School 116.14Transportation. Except as provided in section 
         169.4504, the construction, design, and 116.15equipment of types A, B, C, and D and multifunctional school activity bus school buses 116.16used for the transportation of students with disabilities also shall meet the requirements 116.17of the "specially equipped school bus standards" in the 2000 2005 National School 116.18Transportation Specifications and Procedures. The "bus chassis standards," "bus body 116.19standards," and "specially equipped school bus standards" sections of the 2000 2005116.20edition of the "National School Transportation Specifications and Procedures" are 116.21incorporated by reference in this chapter. 116.22EFFECTIVE DATE.This section is effective January 1, 2008.116.23    Sec. 7. Minnesota Statutes 2006, section 169.4501, subdivision 2, is amended to read:116.24    Subd. 2. Applicability. (a) The standards adopted in this section and sections 116.25169.4502
          and 
         169.4503, govern the construction, design, equipment, and color of school 116.26buses used for the transportation of school children, when owned or leased and operated 116.27by a school or privately owned or leased and operated under a contract with a school. 116.28Each school, its officers and employees, and each person employed under the contract is 116.29subject to these standards. 116.30    (b) The standards apply to school buses manufactured after October 31, 2004116.31December 31, 2007. Buses complying with the standards when manufactured need not 116.32comply with standards established later except as specifically provided for by law.117.1    (c) A school bus manufactured on or before October 31, 2004 December 31, 117.22007, must conform to the Minnesota standards in effect on the date the vehicle was 117.3manufactured except as specifically provided for in law.117.4    (d) A new bus body may be remounted on a used chassis provided that the remounted 117.5vehicle meets state and federal standards for new buses which are current at the time of the 117.6remounting. Permission must be obtained from the commissioner of public safety before 117.7the remounting is done. A used bus body may not be remounted on a new or used chassis.117.8EFFECTIVE DATE.This section is effective January 1, 2008.117.9    Sec. 8. Minnesota Statutes 2006, section 169.4502, subdivision 5, is amended to read:117.10    Subd. 5. Electrical system; battery. (a) The storage battery, as established by the 117.11manufacturer's rating, must be of sufficient capacity to care for starting, lighting, signal 117.12devices, heating, and other electrical equipment. In a bus with a gas-powered chassis, the 117.13battery or batteries must provide a minimum of 800 cold cranking amperes. In a bus 117.14with a diesel-powered chassis, the battery or batteries must provide a minimum of 1050 117.15cold cranking amperes.117.16    (b) In a type B bus with a gross vehicle weight rating of 15,000 pounds or more, and 117.17type C and D buses, the battery shall be temporarily mounted on the chassis frame. The 117.18final location of the battery and the appropriate cable lengths in these buses must comply 117.19with the SBMI design objectives booklet.117.20    (c) All batteries shall be mounted according to chassis manufacturers' 117.21recommendations.117.22    (d) In a type C bus, other than are powered by diesel fuel, a battery providing at least 117.23550 cold cranking amperes may be installed in the engine compartment only if used in 117.24combination with a generator or alternator of at least 120 130 amperes.117.25    (e) A bus with a gross vehicle weight rating of 15,000 pounds or less may be 117.26equipped with a battery to provide a minimum of 550 cold cranking amperes only if used 117.27in combination with an alternator of at least 80 130 amperes. This paragraph does not 117.28apply to those buses with wheelchair lifts or diesel engines.117.29EFFECTIVE DATE.This section is effective January 1, 2008.117.30    Sec. 9. Minnesota Statutes 2006, section 169.4503, subdivision 13, is amended to read:117.31    Subd. 13. Identification. (a) Each bus shall, in the beltline, identify the school 117.32district serviced, or company name, or owner of the bus. Numbers necessary for 117.33identification must appear on the sides and rear of the bus. Symbols or letters may 118.1be used on the outside of the bus near the entrance door for student identification. A 118.2manufacturer's nameplate or logo may be placed on the bus.118.3    (b) Effective December 31, 1994, all type A, B, C, and D buses sold must display 118.4lettering "Unlawful to pass when red lights are flashing" on the rear of the bus. The 118.5lettering shall be in two-inch black letters on school bus yellow background. This message 118.6shall be displayed directly below the upper window of the rear door. On rear engine buses, 118.7it shall be centered at approximately the same location. Only signs and lettering approved 118.8or required by state law may be displayed.118.9EFFECTIVE DATE.This section is effective January 1, 2008.118.10    Sec. 10. Minnesota Statutes 2006, section 169.4503, subdivision 20, is amended to 118.11read:118.12    Subd. 20. Seat and crash barriers.(a) All restraining barriers and passenger seats 118.13shall be covered with a material that has fire retardant or fire block characteristics.118.14    (b) All seats must have a minimum cushion depth of 15 inches and a seat back 118.15height of at least 20 inches above the seating reference point.118.16EFFECTIVE DATE.This section is effective January 1, 2008.118.17    Sec. 11. Minnesota Statutes 2006, section 171.02, subdivision 2, is amended to read:118.18    Subd. 2. Driver's license classifications, endorsements, exemptions. (a) Drivers' 118.19licenses are classified according to the types of vehicles that may be driven by the holder 118.20of each type or class of license. The commissioner may, as appropriate, subdivide the 118.21classes listed in this subdivision and issue licenses classified accordingly.118.22    (b) Except as provided in paragraph (c), clauses (1) and (2), and subdivision 2a, no 118.23class of license is valid to operate a motorcycle, school bus, tank vehicle, double-trailer 118.24or triple-trailer combination, vehicle transporting hazardous materials, or bus, unless 118.25so endorsed. There are four general classes of licenses as described in paragraphs (c) 118.26through (f).118.27    (c) Class D drivers' licenses are valid for:118.28    (1) operating all farm trucks if the farm truck is:118.29    (i) controlled and operated by a farmer, including operation by an immediate family 118.30member or an employee of the farmer;118.31    (ii) used to transport agricultural products, farm machinery, or farm supplies, 118.32including hazardous materials, to or from a farm;119.1    (iii) not used in the operations of a common or contract motor carrier as governed by 119.2Code of Federal Regulations, title 49, part 365; and119.3    (iv) used within 150 miles of the farm;119.4    (2) notwithstanding paragraph (b), operating an authorized emergency vehicle, 119.5as defined in section 
         169.01, subdivision 5, whether or not in excess of 26,000 pounds 119.6gross vehicle weight;119.7    (3) operating a recreational vehicle as defined in section 
         168.011, subdivision 25, 119.8that is operated for personal use;119.9    (4) operating all single-unit vehicles except vehicles with a gross vehicle weight of 119.10more than 26,000 pounds, vehicles designed to carry more than 15 passengers including 119.11the driver, and vehicles that carry hazardous materials;119.12    (5) notwithstanding paragraph (d), operating a type A school bus or a multifunctional 119.13school activity bus without a school bus endorsement if:119.14    (i) the bus has a gross vehicle weight of 10,000 pounds or less;119.15    (ii) the bus is designed to transport 15 or fewer passengers, including the driver; and119.16    (iii) the requirements of subdivision 2a are satisfied, as determined by the 119.17commissioner;119.18    (6) operating any vehicle or combination of vehicles when operated by a licensed 119.19peace officer while on duty; and119.20    (7) towing vehicles if:119.21    (i) the towed vehicles have a gross vehicle weight of 10,000 pounds or less; or119.22    (ii) the towed vehicles have a gross vehicle weight of more than 10,000 pounds and 119.23the combination of vehicles has a gross vehicle weight of 26,000 pounds or less.119.24    (d) Class C drivers' licenses are valid for:119.25    (1) operating class D motor vehicles;119.26    (2) with a hazardous materials endorsement, transporting hazardous materials 119.27in class D vehicles; and119.28    (3) with a school bus endorsement, operating school buses designed to transport 15 119.29or fewer passengers, including the driver.119.30    (e) Class B drivers' licenses are valid for:119.31    (1) operating all class C motor vehicles, class D motor vehicles, and all other 119.32single-unit motor vehicles including, with a passenger endorsement, buses; and119.33    (2) towing only vehicles with a gross vehicle weight of 10,000 pounds or less.119.34    (f) Class A drivers' licenses are valid for operating any vehicle or combination of 119.35vehicles.119.36EFFECTIVE DATE.This section is effective January 1, 2008.120.1    Sec. 12. Minnesota Statutes 2006, section 171.02, subdivision 2a, is amended to read:120.2    Subd. 2a. Exception for certain school bus drivers. Notwithstanding subdivision 120.32, paragraph (c), the holder of a class D driver's license, without a school bus endorsement, 120.4may operate a type A school bus described in subdivision 2, paragraph (b), under the 120.5following conditions:120.6    (a) The operator is an employee of the entity that owns, leases, or contracts for the 120.7school bus and is not solely hired to provide transportation services under this subdivision.120.8    (b) The operator drives the school bus only from points of origin to points of 120.9destination, not including home-to-school trips to pick up or drop off students.120.10    (c) The operator is prohibited from using the eight-light system. Violation of this 120.11paragraph is a misdemeanor.120.12    (d) The operator's employer has adopted and implemented a policy that provides for 120.13annual training and certification of the operator in:120.14    (1) safe operation of the type of school bus the operator will be driving;120.15    (2) understanding student behavior, including issues relating to students with 120.16disabilities;120.17    (3) encouraging orderly conduct of students on the bus and handling incidents of 120.18misconduct appropriately;120.19    (4) knowing and understanding relevant laws, rules of the road, and local school 120.20bus safety policies;120.21    (5) handling emergency situations; and120.22    (6) safe loading and unloading of students.120.23    (e) A background check or background investigation of the operator has been 120.24conducted that meets the requirements under section 
         122A.18, subdivision 8, or 
         123B.03120.25for teachers; section 
         144.057 or chapter 245C for day care employees; or section 
         171.321, 120.26subdivision 3
         , for all other persons operating a type A school bus under this subdivision.120.27    (f) Operators shall submit to a physical examination as required by section 
         171.321, 120.28subdivision 2
         .120.29    (g) The operator's driver's license is verified annually by the entity that owns, leases, 120.30or contracts for the school bus.120.31    (h) A person who sustains a conviction, as defined under section 
         609.02, of violating 120.32section 
         169A.25, 
         169A.26, 
         169A.27, 
         169A.31, 
         169A.51, or 
         169A.52, or a similar statute 120.33or ordinance of another state is precluded from operating a school bus for five years 120.34from the date of conviction.121.1    (i) A person who has ever been convicted of a disqualifying offense as defined in 121.2section 
         171.3215, subdivision 1, paragraph (c), may not operate a school bus under this 121.3subdivision.121.4    (j) A person who sustains a conviction, as defined under section 
         609.02, of a fourth 121.5moving offense in violation of chapter 169 is precluded from operating a school bus for 121.6one year from the date of the last conviction.121.7    (k) Students riding the school bus must have training required under section 121.8123B.90, subdivision 2
         .121.9    (l) An operator must be trained in the proper use of child safety restraints as set 121.10forth in the National Highway Traffic Safety Administration's "Guideline for the Safe 121.11Transportation of Pre-school Age Children in School Buses.," if child safety restraints are 121.12used by the passengers.121.13    (m) Annual certification of the requirements listed in this subdivision must be 121.14maintained under separate file at the business location for each operator licensed under 121.15this subdivision and subdivision 2, paragraph (b), clause (5). The business manager, 121.16school board, governing body of a nonpublic school, or any other entity that owns, 121.17leases, or contracts for the school bus operating under this subdivision is responsible 121.18for maintaining these files for inspection.121.19    (n) The school bus must bear a current certificate of inspection issued under section 121.20169.451
         .121.21    (o) The word "School" on the front and rear of the bus must be covered by a sign 121.22that reads "Activities" when the bus is being operated under authority of this subdivision.121.23EFFECTIVE DATE.This section is effective January 1, 2008.121.24    Sec. 13. Minnesota Statutes 2006, section 171.321, subdivision 4, is amended to read:121.25    Subd. 4. Training. (a) No person shall drive a class A, B, C, or D school bus when 121.26transporting school children to or from school or upon a school-related trip or activity 121.27without having demonstrated sufficient skills and knowledge to transport students in 121.28a safe and legal manner.121.29    (b) A bus driver must have training or experience that allows the driver to meet at 121.30least the following competencies:121.31    (1) safely operate the type of school bus the driver will be driving;121.32    (2) understand student behavior, including issues relating to students with 121.33disabilities;121.34    (3) encourage orderly conduct of students on the bus and handle incidents of 121.35misconduct appropriately;122.1    (4) know and understand relevant laws, rules of the road, and local school bus 122.2safety policies;122.3    (5) handle emergency situations; and122.4    (6) safely load and unload students.122.5    (c) The commissioner of public safety shall develop a comprehensive model 122.6school bus driver training program and model assessments for school bus driver training 122.7competencies, which are not subject to chapter 14. A school district, nonpublic school, or 122.8private contractor may use alternative assessments for bus driver training competencies 122.9with the approval of the commissioner of public safety. A driver may receive at least eight 122.10hours of school bus in-service training any year, as an alternative to being assessed for bus 122.11driver competencies after the initial year of being assessed for bus driver competencies. 122.12The employer shall keep the assessment or a record of the in-service training for the 122.13current period available for inspection by representatives of the commissioner.122.14EFFECTIVE DATE.This section is effective July 1, 2007.122.15    Sec. 14. RULES REVISED: COMMISSIONER OF PUBLIC SAFETY.122.16    Subdivision 1.Rules revised under the good cause exemption.The commissioner 122.17of public safety must amend and adopt the revisions to the rules listed  in subdivisions 2 to 122.188 under the good cause exemption to the rulemaking process under Minnesota Statutes, 122.19section 14.388, subdivision 1, clause (3).122.20    Subd. 2.Minnesota Rules, part 7470.0500.The commissioner of public safety 122.21must amend Minnesota Rules, part 7470.0500, by replacing two obsolete references to the 122.22Department of Children, Families, and Learning, with a reference to the Department of 122.23Public Safety and removing references to specifically repealed rules.122.24    Subd. 3.Minnesota Rules, part 7470.0700.The commissioner of public safety 122.25must amend Minnesota Rules, part 7470.0700, as follows: 122.26    (1) for the points assigned to school bus equipment defects, strike the reference to 122.27"orange" school buses and include a new school bus color exemption for multifunctional 122.28school activity buses; and122.29    (2) replace the references to type I and type II school buses with type A, B, C, 122.30or D school buses.122.31    Subd. 4.Minnesota Rules, part 7470.1000.The commissioner of public safety 122.32must amend Minnesota Rules, part 7470.1000, to: 122.33    (1) include multifunctional school activity buses in the headnote; 122.34    (2) update subpart 1 to include multifunctional school activity buses as a type of 122.35school bus listed after bus types A, B, C, and D; 123.1    (3) modify subpart 2 to clarify that the prohibition against loading or unloading while 123.2adjacent to a turn lane applies only when it is a right-hand turn lane and does not prohibit a 123.3bus from loading or unloading at the side of the road when there is a center turn lane; and 123.4    (3) expand the exception that allows service dogs on  school buses to include all 123.5companion animals.123.6    Subd. 5.Minnesota Rules, part 7470.1100.The commissioner of public safety 123.7must amend Minnesota Rules, part 7470.1100, to include multifunctional school activity 123.8buses in the headnote and amend subpart 1 to include multifunctional school activity buses 123.9as a type of school bus listed after bus types A, B, C, and D. The commissioner must also 123.10amend item B of this part to require drivers to use prewarning flashing signals, flashing 123.11red signals, and stop signals arms on buses that are equipped with those signals.123.12    Subd. 6.Minnesota Rules, part 7470.1400.The commissioner of public safety 123.13must amend Minnesota Rules, part 7470.1400, to clarify that the operating rules in parts 123.147470.1000 to 7470.1500 apply to buses that are leased and rented as well as to school 123.15buses that are owned by a school district, a nonpublic school, or a private operator under 123.16contract to a school district or nonpublic school.123.17    Subd. 7.Minnesota Rules, part 7470.1500.The commissioner of public safety 123.18must amend Minnesota Rules, part 7470.1500, to: 123.19    (1) clarify that the prohibition against loading or unloading while adjacent to a turn 123.20lane applies only when it is a right-hand turn lane and does not prohibit a bus from loading 123.21or unloading at the side of the road when there is a center turn lane; and 123.22    (2) delete item H because it is obsolete.123.23    Subd. 8.Minnesota Rules, part 7470.1700.The commissioner of public safety 123.24must amend Minnesota Rules, part 7470.1700, subpart 2, to: 123.25    (1) clarify that the bus driver and the bus aide must have access to emergency health 123.26care information for the students with disabilities transported on the bus; and 123.27    (2) add an item E that allows the health information to be maintained either in a hard 123.28copy on the vehicle or immediately accessible through a two-way communications system.123.29EFFECTIVE DATE.This section is effective the day following final enactment.123.30    Sec. 15.  REPEALER.123.31Minnesota Statutes 2006, sections 169.4502, subdivision 15; and 169.4503, 123.32subdivisions 17, 18, and 26, are repealed.123.33EFFECTIVE DATE.This section is effective January 1, 2008.124.1ARTICLE 9124.2EARLY CHILDHOOD AND 124.3ADULT PROGRAMS124.4    Section 1. Minnesota Statutes 2006, section 119A.52, is amended to read:124.5119A.52 DISTRIBUTION OF APPROPRIATION.124.6    (a) The commissioner of education must distribute money appropriated for that 124.7purpose to federally designated Head Start programs to expand services and to serve 124.8additional low-income children. Migrant and Indian reservation programs must be initially 124.9allocated money based on the programs' share of federal funds. The remaining money 124.10must be initially allocated to the remaining local agencies based equally on the agencies' 124.11share of federal funds and on the proportion of eligible children in the agencies' service 124.12area who are not currently being served. A Head Start grantee program must be funded 124.13at a per child rate equal to its contracted, federally funded base level at the start of the 124.14fiscal year. In allocating funds under this paragraph, the commissioner of education 124.15must assure that each Head Start program in existence in 1993 is allocated no less 124.16funding in any fiscal year than was allocated to that program in fiscal year 1993. Before 124.17paying money to the programs, the commissioner must notify each program of its initial 124.18allocation, how the money must be used, and the number of low-income children to be 124.19served with the allocation based upon the federally funded per child rate. Each program 124.20must present a plan under section 
         119A.535. For any grantee program that cannot utilize 124.21its full allocation at the beginning of the fiscal year, the commissioner must reduce the 124.22allocation proportionately. Money available after the initial allocations are reduced must 124.23be redistributed to eligible grantees programs.124.24    (b) The commissioner must develop procedures to make payments to programs 124.25based upon the number of children reported to be enrolled during the required time 124.26period of program operations. Enrollment is defined by federal Head Start regulations. 124.27The procedures must include a reporting schedule, corrective action plan requirements, 124.28and financial consequences to be imposed on programs that do not meet full enrollment 124.29after the period of corrective action. Programs reporting chronic underenrollment, as 124.30defined by the commissioner, will have their subsequent program year allocation reduced 124.31proportionately. Funds made available by prorating payments and allocations to programs 124.32with reported underenrollment will be made available to the extent funds exist to fully 124.33enrolled Head Start programs through a form and manner prescribed by the department.125.1    Sec. 2. Minnesota Statutes 2006, section 119A.535, is amended to read:125.2119A.535 APPLICATION REQUIREMENTS.125.3    Eligible Head Start organizations must submit a plan to the department for approval 125.4on a form and in the manner prescribed by the commissioner. The plan must include:125.5    (1) the estimated number of low-income children and families the program will be 125.6able to serve;125.7    (2) a description of the program design and service delivery area which meets the 125.8needs of and encourages access by low-income working families;125.9    (3) a program design that ensures fair and equitable access to Head Start services for 125.10all populations and parts of the service area;125.11    (4) a plan for coordinating services to maximize assistance for child care costs 125.12available to families under chapter 119B providing Head Start services in conjunction with 125.13full-day child care programs to minimize child transitions, increase program intensity and 125.14duration, and improve child and family outcomes as required in section 119A.5411; and125.15    (5) identification of regular Head Start, early Head Start, full-day services identified 125.16in section 119A.5411, and innovative services based upon demonstrated needs to be 125.17provided.125.18    Sec. 3. [119A.5411] FULL-DAY REQUIREMENTS.125.19    The following phase-in of full-day services in Head Start programs or licensed child 125.20care as defined in chapter 245A is required: 125.21    (1) by fiscal year 2009, a minimum of 25 percent of the total state-funded enrollment 125.22throughout  the state must be provided in full-day services;125.23     (2) by fiscal year 2011, a minimum of 40 percent of the total state-funded enrollment 125.24throughout the state must be provided in full-day services; and125.25    (3) by fiscal year 2013, a minimum of 50 percent of the total state-funded enrollment 125.26throughout the state must be provided in full-day services.125.27    Head Start programs may provide full-day services as part of their own program 125.28model or through agreements with licensed full-day child care programs. If licensed child 125.29care providers do not exist in a geographic area, choose not to participate, cannot meet 125.30the federal Head Start performance standards after sufficient opportunity, or a Head Start 125.31program is unable to establish the full-day services as a part of their own program model, 125.32the Head Start program may request exemption from the commissioner.125.33    Sec. 4. Minnesota Statutes 2006, section 121A.17, subdivision 5, is amended to read:126.1    Subd. 5. Developmental screening program information. The board must inform 126.2each resident family with a child eligible to participate in the developmental screening 126.3program about the availability of the program and the state's requirement that a child 126.4receive a developmental screening or provide health records indicating that the child 126.5received a comparable developmental screening from a public or private health care 126.6organization or individual health care provider not later than 30 days after the first 126.7day of attending kindergarten in a public school. A school district must inform all 126.8resident families with eligible children under age seven that their children may receive 126.9a developmental screening conducted either by the school district or by a public or 126.10private health care organization or individual health care provider and that the screening 126.11is not required if a statement signed by the child's parent or guardian is submitted to the 126.12administrator or other person having general control and supervision of the school that 126.13the child has not been screened.126.14    Sec. 5. Minnesota Statutes 2006, section 124D.13, subdivision 1, is amended to read:126.15    Subdivision 1. Establishment; purpose. A district that provides a community 126.16education program under sections 
         124D.18 and 
         124D.19 may establish an early childhood 126.17family education program. Two or more districts, each of which provides a community 126.18education program, may cooperate to jointly provide an early childhood family education 126.19program. The purpose of the early childhood family education program is to provide 126.20parenting education to support children's learning and development.126.21    Sec. 6. Minnesota Statutes 2006, section 124D.13, subdivision 2, is amended to read:126.22    Subd. 2. Program characteristics requirements. (a) Early childhood family 126.23education programs are programs for children in the period of life from birth to 126.24kindergarten, for the parents and other relatives of these children, and for expectant 126.25parents. To the extent that funds are insufficient to provide programs for all children, 126.26early childhood family education programs should emphasize programming for a child 126.27from birth to age three and encourage parents and other relatives to involve four- and 126.28five-year-old children in school readiness programs, and other public and nonpublic early 126.29learning programs. A district may not limit participation to school district residents. Early 126.30childhood family education programs may include the following must provide:126.31    (1) programs to educate parents and other relatives about the physical, mental, and 126.32emotional development of children and to enhance the skills of parents and other relatives 126.33in providing for their children's learning and development;127.1    (2) programs to enhance the skills of parents and other relatives in providing for their 127.2children's learning and development structured learning activities requiring interaction 127.3between children and their parents or relatives;127.4    (3) structured learning experiences activities for children and parents and other 127.5relatives that promote children's development and positive interaction with peers, which 127.6are held while parents or relatives attend parent education classes;127.7    (4) activities designed to detect children's physical, mental, emotional, or behavioral 127.8problems that may cause learning problems;127.9    (5) activities and materials designed to encourage self-esteem, skills, and behavior 127.10that prevent sexual and other interpersonal violence;127.11    (6) educational materials which may be borrowed for home use;127.12    (7) (4) information on related community resources;127.13    (8) programs to prevent (5) information, materials, and activities that support the 127.14safety of children, including prevention of child abuse and neglect; and127.15    (9) other programs or activities to improve the health, development, and school 127.16readiness of children; or127.17    (10) activities designed to maximize development during infancy.127.18    (6) a community outreach plan to ensure participation by families who reflect the 127.19racial, cultural, and economic diversity of the school district.127.20    The programs must include learning experiences for children, parents, and other 127.21relatives that promote children's early literacy skills. The programsprogram must not 127.22include activities for children that do not require substantial involvement of the children's 127.23parents or other relatives. The programs program must be reviewed periodically to assure 127.24the instruction and materials are not racially, culturally, or sexually biased. The programs 127.25must encourage parents to be aware of practices that may affect equitable development of 127.26children.127.27    (b) For the purposes of this section, "relative" or "relatives" means noncustodial 127.28grandparents or other persons related to a child by blood, marriage, adoption, or foster 127.29placement, excluding parents.127.30    Sec. 7. Minnesota Statutes 2006, section 124D.13, subdivision 11, is amended to read:127.31    Subd. 11. Teachers. A school board must employ necessary qualified teachers 127.32licensed in early childhood or parent education for its early childhood family education 127.33programs.128.1    Sec. 8. Minnesota Statutes 2006, section 124D.13, is amended by adding a subdivision 128.2to read:128.3    Subd. 13.Plan and program data submission requirements.(a) An early 128.4childhood family education program must submit a biennial plan addressing the 128.5requirements of subdivision 2 for approval by the commissioner. The plan must also 128.6describe how the program provides parenting education and ensures participation of 128.7families representative of the school district. A school district must submit the plan for 128.8approval by the commissioner in the form and manner prescribed by the commissioner. 128.9One-half of districts, as determined by the commissioner, must first submit a biennial plan 128.10by April 1, 2009, and the remaining districts must first submit a plan by April 1, 2010.128.11    (b) Districts receiving early childhood family education revenue under section 128.12124D.135 must submit annual program data to the department by July 15 in the form and 128.13manner prescribed by the commissioner.128.14    (c) Beginning with levies for fiscal year 2011, a school district must submit its annual 128.15program data to the department before it may certify a levy under section 124D.135. 128.16Districts selected by the commissioner to submit a biennial plan by April 1, 2009, must 128.17also have an approved plan on file with the commissioner before certifying a levy under 128.18section 124D.135 for fiscal year 2011. Beginning with levies for fiscal year 2012, all 128.19districts must submit annual program data and have an approved biennial plan on file with 128.20the commissioner before certifying a levy under section 124D.135.128.21    Sec. 9. Minnesota Statutes 2006, section 124D.135, subdivision 1, is amended to read:128.22    Subdivision 1. Revenue. The revenue for early childhood family education 128.23programs for a school district equals  $112 for fiscal year 2007 and $120 for fiscal year 128.242008 and later, times the greater of:128.25    (1) 150; or128.26    (2) the number of people under five years of age residing in the district on October 1 128.27of the previous school year.128.28EFFECTIVE DATE.This section is effective for revenue for fiscal year 2008.128.29    Sec. 10. Minnesota Statutes 2006, section 124D.135, subdivision 3, is amended to read:128.30    Subd. 3. Early childhood family education levy.For fiscal year 2001 to obtain 128.31early childhood family education revenue, a district may levy an amount equal to the tax 128.32rate of .5282 percent times the adjusted tax capacity of the district for the year preceding 128.33the year the levy is certified. Beginning with levies for fiscal year 2002, By September 128.3430 of each year, the commissioner shall establish a tax rate for early childhood family129.1education revenue that raises $21,027,000 for fiscal year 2002 and $22,135,000 in each129.2fiscal year 2003 and each subsequent year. If the amount of the early childhood family 129.3education levy would exceed the early childhood family education revenue, the early 129.4childhood family education levy must equal the early childhood family education revenue.129.5Beginning with levies for fiscal year 2011, a district may not certify an early childhood 129.6family education levy unless it has met the annual program data reporting and biennial 129.7plan requirements under section 124D.13, subdivision 13.129.8    Sec. 11. Minnesota Statutes 2006, section 124D.135, subdivision 5, is amended to read:129.9    Subd. 5. Use of revenue restricted.(a) Early childhood family education revenue 129.10may be used only for early childhood family education programs.129.11    (b) Not more than five percent of early childhood family education revenue, as 129.12defined in subdivision 7, may be used to administer early childhood family education 129.13programs.129.14    (c) An early childhood family education program may use up to ten percent of its 129.15early childhood family education revenue as defined in subdivision 1, including revenue 129.16from participant fees, for equipment that is used in the early childhood family education 129.17program. This revenue may only be used for the following purposes:129.18    (1) to purchase or lease computers and related materials; and129.19    (2) to purchase or lease equipment for instruction for participating children and 129.20their families.129.21    If a district anticipates an unusual circumstance requiring its early childhood family 129.22education program capital expenditures to exceed the ten percent limitation, prior approval 129.23to exceed the limit must be obtained in writing from the commissioner.129.24    Sec. 12. Minnesota Statutes 2006, section 124D.135, subdivision 6, is amended to read:129.25    Subd. 6. Home visiting levy. A district that is eligible to levy for early childhood 129.26family education under subdivision 3 and that enters into a collaborative agreement to 129.27provide education services and social services to families with young children may levy 129.28an amount equal to $1.60 times the number of people under five years of age residing in 129.29the district on September 1 of the last school year. Levy revenue under this subdivision 129.30must not be included as revenue under subdivision 1. The revenue must be used for home 129.31visiting programs under section 
         124D.13, subdivision 4. 129.32    Sec. 13. Minnesota Statutes 2006, section 124D.15, subdivision 3, is amended to read:129.33    Subd. 3. Program requirements. A school readiness program provider must:130.1    (1) assess each child's cognitive skills when the child enters and again before the 130.2child leaves the program to inform program planning and promote kindergarten readiness;130.3    (2) provide comprehensive program content based on early childhood research and 130.4professional practice that is focused on children's cognitive skills and development and 130.5prepares children for the transition to kindergarten, including early literacy skills;130.6    (3) arrange for early childhood screening and appropriate referral;130.7    (4) involve parents in program planning and decision making;130.8    (5) coordinate with relevant community-based services; and130.9    (6) cooperate with adult basic education programs and other adult literacy programs.130.10    Sec. 14. [124D.2211] AFTER-SCHOOL COMMUNITY LEARNING 130.11PROGRAMS.130.12    Subdivision 1.Establishment.A competitive statewide after-school community 130.13learning grant program is established to provide grants to community or nonprofit 130.14organizations, political subdivisions, for-profit or nonprofit child care centers, or 130.15school-based programs that serve youth after school or during nonschool hours. The 130.16commissioner shall develop criteria for after-school community learning programs.130.17    Subd. 2.Program outcomes.The expected outcomes of the after-school 130.18community learning programs are to increase:130.19    (1) school connectedness of participants;130.20    (2) academic achievement of participating students in one or more core academic 130.21areas;130.22    (3) the capacity of participants to become productive adults; and130.23    (4) prevent truancy from school and prevent juvenile crime.130.24    Subd. 3.Grants.An applicant shall submit an after-school community learning 130.25program proposal to the commissioner. The submitted plan must include:130.26    (1) collaboration with and leverage of existing community resources that have 130.27demonstrated effectiveness;130.28    (2) outreach to children and youth; and130.29    (3) involvement of local governments, including park and recreation boards or 130.30schools, unless no government agency is appropriate.130.31    Proposals will be reviewed and approved by the commissioner.130.32    Sec. 15. Minnesota Statutes 2006, section 124D.531, subdivision 1, is amended to read:130.33    Subdivision 1. State total adult basic education aid. (a) The state total adult basic 130.34education aid for fiscal year 2005 is $36,509,000. The state total adult basic education 131.1aid for fiscal year 2006  equals $36,587,000 plus any amount that is not paid for during 131.2the previous fiscal year, as a result of adjustments under subdivision 4, paragraph (a), or 131.3section 
         124D.52, subdivision 3. The state total adult basic education aid for fiscal year 131.42007 equals $37,673,000 plus any amount that is not paid for during the previous fiscal 131.5year, as a result of adjustments under subdivision 4, paragraph (a), or section 
         124D.52, 131.6subdivision 3
         . The state total adult basic education aid for fiscal year 2008 equals 131.7$40,650,000, plus any amount that is not paid during the previous fiscal year as a result of 131.8adjustments under subdivision 4, paragraph (a), or section 124D.52, subdivision 3. The 131.9state total adult basic education aid for later fiscal years equals:131.10    (1) the state total adult basic education aid for the preceding fiscal year plus any 131.11amount that is not paid for during the previous fiscal year, as a result of adjustments under 131.12subdivision 4, paragraph (a), or section 
         124D.52, subdivision 3; times131.13    (2) the lesser of:131.14    (i) 
         1.03; or131.15    (ii) the greater of 
         1.00 or the ratio of the state total contact hours in the first prior 131.16program year to the state total contact hours in the second prior program year.131.17    Beginning in fiscal year 2002, two percent of the state total adult basic education 131.18aid must be set aside for adult basic education supplemental service grants under section 131.19124D.522
         .131.20    (b) The state total adult basic education aid, excluding basic population aid, equals 131.21the difference between the amount computed in paragraph (a), and the state total basic 131.22population aid under subdivision 2.131.23    Sec. 16. Minnesota Statutes 2006, section 124D.531, subdivision 4, is amended to read:131.24    Subd. 4. Adult basic education program aid limit. (a) Notwithstanding 131.25subdivisions 2 and 3, the total adult basic education aid for a program per prior year 131.26contact hour must not exceed $21 $22 per prior year contact hour computed under 131.27subdivision 3, clause (2).131.28    (b) For fiscal year 2004, the aid for a program under subdivision 3, clause (2), 131.29adjusted for changes in program membership, must not exceed the aid for that program 131.30under subdivision 3, clause (2), for fiscal year 2003 by more than the greater of eight 131.31percent or $10,000.131.32    (c) For fiscal year 2005, the aid for a program under subdivision 3, clause (2), 131.33adjusted for changes in program membership, must not exceed the sum of the aid for that 131.34program under subdivision 3, clause (2), and Laws 2003, First Special Session chapter 9, 132.1article 9, section 8, paragraph (a), for the preceding fiscal year by more than the greater of 132.2eight percent or $10,000.132.3    (d) (b) For fiscal year 2006 and later fiscal year 2007, the aid for a program under 132.4subdivision 3, clause (2), adjusted for changes in program membership, must not exceed 132.5the aid for that program under subdivision 3, clause (2), for the first preceding fiscal year 132.6by more than the greater of eight percent or $10,000.132.7    (c) For fiscal year 2008, the aid for a program under subdivision 3, clause (2), 132.8adjusted for changes in program membership, shall not be limited.132.9    (d) For fiscal year 2009 and later, the aid for a program under subdivision 3, 132.10clause (2), adjusted for changes in program membership, must not exceed the aid for 132.11that program under subdivision 3, clause (2), for the first preceding fiscal year by more 132.12than the greater of 11 percent or $10,000.132.13    (e) Adult basic education aid is payable to a program for unreimbursed costs 132.14occurring in the program year as defined in section 
         124D.52, subdivision 3.132.15    (f) Any adult basic education aid that is not paid to a program because of the 132.16program aid limitation under paragraph (a) must be added to the state total adult basic 132.17education aid for the next fiscal year under subdivision 1. Any adult basic education aid 132.18that is not paid to a program because of the program aid limitations under paragraph (b), 132.19(c), or (d), must be reallocated among programs by adjusting the rate per contact hour 132.20under subdivision 3, clause (2).132.21    Sec. 17. APPROPRIATION.132.22    Subdivision 1.Department of Education.The sums indicated in this section are 132.23appropriated from the general fund to the Department of Education for the fiscal years 132.24designated.132.25    Subd. 2.Early childhood family education aid.For early childhood family 132.26education aid under Minnesota Statutes, section 124D.135:

132.27$ 21,106,000.....2008132.28$ 21,888,000.....2009

132.29    The 2008 appropriation includes $1,796,000 for 2007 and $19,310,000 for 2008.132.30    The 2009 appropriation includes $2,145,000 for 2008 and $19,743,000 for 2009.132.31    Subd. 3.School readiness.For revenue for school readiness programs under 132.32Minnesota Statutes, sections 124D.15 and 124D.16:

132.33$9,995,000.....2008132.34$10,095,000.....2009

133.1    The 2008 appropriation includes $909,000 for 2007 and $9,086,000 for 2008.133.2    The 2009 appropriation includes $1,009,000 for 2008 and $9,086,000 for 2009.133.3    Subd. 4.Health and developmental screening aid.For health and developmental 133.4screening aid under Minnesota Statutes, sections 121A.17 and 121A.19:

133.5$3,159,000.....2008133.6$3,330,000.....2009

133.7    The 2008 appropriation includes $288,000 for 2007 and $2,871,000 for 2008.133.8    The 2009 appropriation includes $319,000 for 2008 and $3,011,000 for 2009.133.9    Subd. 5.Educate parents partnership.For the educate parents partnership under 133.10Minnesota Statutes, section 124D.129:

133.11$50,000.....2008133.12$50,000.....2009

133.13    Subd. 6.Kindergarten entrance assessment initiative and intervention 133.14program.For the kindergarten entrance assessment initiative and intervention program 133.15under Minnesota Statutes, section 124D.162:

133.16$ 287,000.....2008133.17$ 287,000.....2009

133.18    Subd. 7.Head Start programs.For Head Start programs under Minnesota 133.19Statutes, section 119A.52:

133.20$20,100,000.....2008133.21$20,100,000.....2009

133.22    Any balance in the first year does not cancel but is available in the second year.133.23    Subd. 8.Community education aid.For community education aid under 133.24Minnesota Statutes, section 124D.20:

133.25$1,307,000.....2008133.26$816,000.....2009

133.27    The 2008 appropriation includes $195,000 for 2007 and $1,112,000 for 2008.133.28    The 2009 appropriation includes $123,000 for 2008 and $693,000 for 2009.133.29    Subd. 9.Adults with disabilities program aid.For adults with disabilities 133.30programs under Minnesota Statutes, section 124D.56:

133.31$710,000.....2008133.32$ 710,000.....2009

134.1    The 2008 appropriation includes $71,000 for 2007 and $639,000 for 2008.134.2    The 2009 appropriation includes $71,000 for 2008 and $639,000 for 2009.134.3    School districts operating existing adults with disabilities programs that are not fully 134.4funded shall receive full funding for the program beginning in fiscal year 2008 before the 134.5commissioner awards grants to other districts.134.6    Subd. 10.Hearing-impaired adults.For programs for hearing-impaired adults 134.7under Minnesota Statutes, section 124D.57:

134.8$70,000.....2008134.9$70,000.....2009

134.10    Subd. 11.School-age care revenue.For extended day aid under Minnesota 134.11Statutes, section 124D.22:

134.12$1,000.....2008134.13$1,000.....2009

134.14    The 2008 appropriation includes $0 for 2007 and $1,000 for 2008.134.15    The 2009 appropriation includes $0 for 2008 and $1,000 for 2009.134.16    Subd. 12.After-school community learning grants.For after-school community 134.17learning grants:

134.18$2,775,000.....2008134.19$2,600,000.....2009

134.20    The commissioner may hire one full-time equivalent staff person to administer the 134.21statewide after-school community learning grant program.134.22    This is a onetime appropriation.134.23    Subd. 13.Adult basic education aid.For adult basic education aid under 134.24Minnesota Statutes, section 124D.531:

134.25$ 40,347,000.....2008134.26$ 41,745,000.....2009

134.27    The 2008 appropriation includes $3,759,000 for 2007 and $36,588,000 for 2008.134.28    The 2009 appropriation includes $4,065,000 for 2008 and $37,680,000 for 2009.134.29    Subd. 14.GED test fees.For GED test fees under Minnesota Statutes, section 134.30124D.55:

134.31$ 125,000.....2008134.32$ 125,000.....2009

134.33    Any balance in the first year does not cancel but is available in the second year.135.1    Subd. 15.Adult literacy grants for recent immigrants.For adult literacy grants 135.2for recent immigrants to Minnesota under Laws 2006, chapter 282, article 2, section 26:

135.3$1,250,000.....2008

135.4    Sec. 18. APPROPRIATIONS; DEPARTMENT OF HEALTH.135.5    Subdivision 1.Department of Health.The sums indicated in this section are 135.6appropriated from the general fund to the Department of Health for the fiscal years 135.7designated.135.8    Subd. 2.Lead hazard reduction.For lead hazard reduction under Minnesota 135.9Statutes, section 144.9512:

135.10$100,000.....2008135.11$100,000.....2009

135.12    Sec. 19.  REPEALER.135.13Minnesota Statutes 2006, sections 124D.175; and 124D.531, subdivision 5, are 135.14repealed.135.15ARTICLE 10135.16EDUCATION FORECAST ADJUSTMENTS135.17A. GENERAL EDUCATION135.18    Section 1. Laws 2005, First Special Session chapter 5, article 1, section 54, subdivision 135.192, as amended by Laws 2006, chapter 282, article 3, section 2, is amended to read:135.20    Subd. 2 General education aid  For general education  aid under Minnesota Statutes, 135.21section 
         126C.13, subdivision 4:  

135.22$ 5,819,153,000.....2006135.23135.24$5,472,238,0005,453,693,000.....2007

135.25    The 2006 appropriation includes $787,978,000 for 2005 and $5,031,175,000 for 135.262006.  135.27    The 2007 appropriation includes $513,848,000 $518,218,000 for 2006 and 135.28$4,958,390,000 $4,935,475,000 for 2007.135.29EFFECTIVE DATE.This section is effective the day following final enactment.136.1    Sec. 2. Laws 2005, First Special Session chapter 5, article 1, section 54, subdivision 4, 136.2is amended to read:136.3    Subd. 4. Enrollment options transportation. For transportation of pupils attending 136.4postsecondary institutions under Minnesota Statutes, section 
         124D.09, or for transportation 136.5of pupils attending nonresident districts under Minnesota Statutes, section 
         124D.03:

136.6$55,000.....2006136.7136.8$55,00093,000.....2007

136.9EFFECTIVE DATE.This section is effective the day following final enactment.136.10    Sec. 3. Laws 2005, First Special Session chapter 5, article 1, section 54, subdivision 5, 136.11as amended by Laws 2006, chapter 282, article 7, section 2, is amended to read:136.12    Subd. 5. Abatement revenue. For abatement aid under  Minnesota Statutes, section 136.13127A.49
         :

136.14$909,000.....2006136.15136.16$1,026,000765,000.....2007

136.17    The 2006 appropriation includes $187,000 for 2005 and   $722,000 for 2006.  136.18    The 2007 appropriation includes  $80,000 for 2006 and   $946,000 $685,000 for 2007.136.19EFFECTIVE DATE.This section is effective the day following final enactment.136.20    Sec. 4. Laws 2005, First Special Session chapter 5, article 1, section 54, subdivision 6, 136.21as amended by Laws 2006, chapter 282, article 7, section 3, is amended to read:136.22    Subd. 6.  Consolidation transition. For districts  consolidating under Minnesota 136.23Statutes, section 
         123A.485:

136.24136.25$527,000388,000.....2007

136.26    The 2007 appropriation includes $0 for 2006 and $527,000 $388,000 for 2007.  136.27EFFECTIVE DATE.This section is effective the day following final enactment.136.28    Sec. 5. Laws 2005, First Special Session chapter 5, article 1, section 54, subdivision 7, 136.29as amended by Laws 2006, chapter 282, article 7, section 4, is amended to read:136.30    Subd. 7.  Nonpublic pupil education aid. For nonpublic  pupil education aid under 136.31Minnesota Statutes, sections 
         123B.87  and 
         123B.40 to 
         123B.43:

137.1$15,458,000.....2006137.2137.3$15,991,00015,972,000.....2007

137.4    The 2006 appropriation includes  $1,864,000 for 2005 and   $13,594,000 for 2006.137.5    The 2007 appropriation includes  $1,510,000 for 2006 and   $14,481,000 $14,462,000137.6for 2007.137.7EFFECTIVE DATE.This section is effective the day following final enactment.137.8    Sec. 6. Laws 2005, First Special Session chapter 5, article 1, section 54, subdivision 8, 137.9as amended by Laws 2006, chapter 282, article 7, section 5, is amended to read:137.10    Subd. 8.  Nonpublic pupil transportation. For nonpublic  pupil transportation aid 137.11under Minnesota Statutes, section  
         123B.92, subdivision 9:

137.12$21,371,000.....2006137.13137.14$20,843,00021,133,000.....2007

137.15    The 2006 appropriation includes $3,274,000 for 2005 and   $18,097,000 for 2006.137.16    The 2007 appropriation includes  $2,010,000 for 2006 and   $18,833,000 $19,123,000137.17for 2007.137.18EFFECTIVE DATE.This section is effective the day following final enactment.137.19B. EDUCATION EXCELLENCE137.20    Sec. 7. Laws 2005, First Special Session chapter 5, article 2, section 84, subdivision 2, 137.21as amended by Laws 2006, chapter 282, article 7, section 6, is amended to read:137.22    Subd. 2.  Charter school building lease aid. For building  lease aid under Minnesota 137.23Statutes, section 
         124D.11, subdivision 4:  

137.24$25,331,000.....2006137.25137.26$27,806,00027,795,000.....2007

137.27    The 2006 appropriation includes  $3,173,000 for 2005 and   $22,158,000 for 2006.  137.28    The 2007 appropriation includes  $2,462,000 for 2006 and   $25,344,000 $25,333,000137.29for 2007.  137.30EFFECTIVE DATE.This section is effective the day following final enactment.137.31    Sec. 8. Laws 2005, First Special Session chapter 5, article 2, section 84, subdivision 3, 137.32as amended by Laws 2006, chapter 282, article 7, section 7, is amended to read:138.1    Subd. 3.  Charter school startup aid. For charter school  startup cost aid under 138.2Minnesota Statutes, section 
         124D.11:  

138.3$1,291,000.....2006138.4138.5$2,347,0002,316,000.....2007

138.6    The 2006 appropriation includes $0 for 2005 and $1,291,000 for 2006.  138.7    The 2007 appropriation includes  $143,000 for 2006 and   $2,204,000 $2,173,000138.8for 2007.  138.9EFFECTIVE DATE.This section is effective the day following final enactment.138.10    Sec. 9. Laws 2005, First Special Session chapter 5, article 2, section 84, subdivision 4, 138.11as amended by Laws 2006, chapter 282, article 7, section 8, is amended to read:138.12    Subd. 4.  Integration aid. For integration aid under  Minnesota Statutes, section 138.13124D.86, subdivision 5
         :  

138.14$59,404,000.....2006138.15138.16$58,405,00058,075,000.....2007

138.17    The 2006 appropriation includes $8,545,000 for 2005 and   $50,859,000 for 2006.  138.18    The 2007 appropriation includes  $5,650,000 for 2006 and   $52,755,000 $52,425,000138.19for 2007.  138.20EFFECTIVE DATE.This section is effective the day following final enactment.138.21    Sec. 10. Laws 2005, First Special Session chapter 5, article 2, section 84, subdivision 138.226, as amended by Laws 2006, chapter 282, article 7, section 9, is amended to read:138.23    Subd. 6.  Interdistrict desegregation or integration transportation grants. For 138.24interdistrict desegregation or integration transportation grants under Minnesota Statutes, 138.25section 
         124D.87:

138.26$6,032,000.....2006138.27138.28$10,134,0008,169,000.....2007

138.29EFFECTIVE DATE.This section is effective the day following final enactment.138.30    Sec. 11. Laws 2005, First Special Session chapter 5, article 2, section 84, subdivision 138.3110, as amended by Laws 2006, chapter 282, article 7, section 11, is amended to read:139.1    Subd. 10.  Tribal contract schools. For tribal contract  school aid under Minnesota 139.2Statutes, section 
         124D.83:  

139.3$2,338,000.....2006139.4139.5$2,357,0002,060,000.....2007

139.6    The 2006 appropriation includes $348,000 for 2005 and   $1,990,000 for 2006.  139.7    The 2007 appropriation includes  $221,000 for 2006 and   $2,136,000 $1,839,000139.8for 2007.  139.9EFFECTIVE DATE.This section is effective the day following final enactment.139.10C. SPECIAL EDUCATION139.11    Sec. 12. Laws 2005, First Special Session chapter 5, article 3, section 18, subdivision 139.122, as amended by Laws 2006, chapter 282, article 7, section 12, is amended to read:139.13    Subd. 2.  Special education; regular. For special  education aid under Minnesota Statutes, 139.14section 
         125A.75:  

139.15$ 559,485,000.....2006139.16139.17$528,106,000529,257,000.....2007

139.18    The 2006 appropriation includes $83,078,000 for 2005 and   $476,407,000 for 2006.  139.19    The 2007 appropriation includes  $52,934,000 for 2006 and   $475,172,000139.20$476,323,000 for 2007.  139.21EFFECTIVE DATE.This section is effective the day following final enactment.139.22    Sec. 13. Laws 2005, First Special Session chapter 5, article 3, section 18, subdivision 139.233, as amended by Laws 2006, chapter 282, article 7, section 13, is amended to read:139.24    Subd. 3.  Aid for children with disabilities. For aid  under Minnesota Statutes, 139.25section 
         125A.75, subdivision 3, for  children with disabilities placed in residential facilities  139.26within the district boundaries for whom no district of residence  can be determined:  

139.27$1,527,000.....2006139.28139.29$1,624,0001,410,000.....2007

139.30    If the appropriation for either year is insufficient, the  appropriation for the other 139.31year is available.  139.32EFFECTIVE DATE.This section is effective the day following final enactment.140.1    Sec. 14. Laws 2005, First Special Session chapter 5, article 3, section 18, subdivision 140.24, as amended by Laws 2006, chapter 282, article 7, section 14, is amended to read:140.3    Subd. 4.  Travel for home-based services. For aid for  teacher travel for home-based 140.4services under Minnesota Statutes,  section 
         125A.75, subdivision 1:  

140.5$198,000.....2006140.6140.7$195,000224,000.....2007

140.8    The 2006 appropriation includes $28,000 for 2005 and   $170,000 for 2006.  140.9    The 2007 appropriation includes  $18,000 for 2006 and   $177,000 $206,000 for 2007.  140.10EFFECTIVE DATE.This section is effective the day following final enactment.140.11    Sec. 15. Laws 2005, First Special Session chapter 5, article 3, section 18, subdivision 140.126, as amended by Laws 2006, chapter 282, article 7, section 16, is amended to read:140.13    Subd. 6. Transition for disabled students. For aid for  transition programs for children 140.14with disabilities under  Minnesota Statutes, section 
         124D.454:  

140.15$9,300,000.....2006140.16140.17$8,781,0008,800,000.....2007

140.18    The 2006 appropriation includes $1,380,000 for 2005 and   $7,920,000 for 2006.  140.19    The 2007 appropriation includes  $880,000 for 2006 and   $7,901,000 $7,920,000140.20for 2007.  140.21EFFECTIVE DATE.This section is effective the day following final enactment.140.22D. FACILITIES140.23    Sec. 16. Laws 2005, First Special Session chapter 5, article 4, section 25, subdivision 140.242, as amended by Laws 2006, chapter 282, article 7, section 18, is amended to read:140.25    Subd. 2.  Health and safety revenue. For health and  safety aid according to 140.26Minnesota Statutes, section 
         123B.57,  subdivision 5:  

140.27$823,000.....2006140.28140.29$352,000249,000.....2007

140.30    The 2006 appropriation includes $211,000 for 2005 and   $612,000 for 2006.  140.31    The 2007 appropriation includes  $68,000 for 2006 and   $284,000 $181,000 for 2007.  140.32EFFECTIVE DATE.This section is effective the day following final enactment.141.1    Sec. 17. Laws 2005, First Special Session chapter 5, article 4, section 25, subdivision 141.23, as amended by Laws 2006, chapter 282, article 5, section 2, is amended to read:141.3    Subd. 3.  Debt service equalization. For debt service aid  according to Minnesota 141.4Statutes, section 
         123B.53, subdivision 6:  

141.5$27,206,000.....2006141.6141.7$18,410,00018,395,000.....2007

141.8    The 2006 appropriation includes $4,654,000 for 2005 and   $22,552,000 for 2006.  141.9    The 2007 appropriation includes $2,504,000 for 2006 and   $15,906,000 $15,891,000141.10for 2007.  141.11EFFECTIVE DATE.This section is effective the day following final enactment.141.12E. NUTRITION141.13    Sec. 18. Laws 2005, First Special Session chapter 5, article 5, section 17, subdivision 141.143, as amended by Laws 2006, chapter 282, article 7, section 20, is amended to read:141.15    Subd. 3.  Traditional school breakfast; kindergarten  milk. For traditional school 141.16breakfast aid and kindergarten  milk under Minnesota Statutes, sections 
         124D.1158 and 141.17124D.118
         :  

141.18$4,856,000.....2006141.19141.20$5,044,0005,175,000.....2007

141.21EFFECTIVE DATE.This section is effective the day following final enactment.141.22F. EARLY CHILDHOOD EDUCATION141.23    Sec. 19. Laws 2005, First Special Session chapter 5, article 7, section 20, subdivision 141.242, as amended by Laws 2006, chapter 282, article 7, section 24, is amended to read:141.25    Subd. 2.  School readiness. For revenue for school  readiness programs under 141.26Minnesota Statutes, sections 
         124D.15  and 
         124D.16:  

141.27$9,528,000.....2006141.28141.29$9,020,0009,087,000.....2007

141.30    The 2006 appropriation includes  $1,415,000 for 2005 and   $8,113,000 for 2006.141.31    The 2007 appropriation includes  $901,000 for 2006 and   $8,119,000 $8,186,000141.32for 2007.141.33EFFECTIVE DATE.This section is effective the day following final enactment.142.1    Sec. 20. Laws 2005, First Special Session chapter 5, article 7, section 20, subdivision 142.23, as amended by Laws 2006, chapter 282, article 2, section 24, is amended to read:142.3    Subd. 3.  Early childhood family education aid. For early  childhood family 142.4education aid under Minnesota Statutes, section  
         124D.135:

142.5$15,105,000.....2006142.6142.7$17,792,00017,639,000.....2007

142.8    The 2006 appropriation includes $1,859,000 for 2005 and $13,246,000 for 2006.142.9    The 2007 appropriation includes $1,471,000 for 2006 and $16,321,000 $16,168,000142.10for 2007.142.11EFFECTIVE DATE.This section is effective the day following final enactment.142.12    Sec. 21. Laws 2005, First Special Session chapter 5, article 7, section 20, subdivision 142.134, as amended by Laws 2006, chapter 282, article 2, section 25, is amended to read:142.14    Subd. 4.  Health and developmental screening aid. For  health and developmental 142.15screening aid under Minnesota Statutes,  sections 
         121A.17 and 
         121A.19:

142.16$3,000,000.....2006142.17142.18$2,997,0002,880,000.....2007

142.19    The 2006 appropriation includes $417,000 for 2005 and  $2,583,000 for 2006 142.20    The 2007 appropriation includes $287,000 for 2006 and $2,710,000 $2,593,000142.21for 2007.142.22EFFECTIVE DATE.This section is effective the day following final enactment.142.23    Sec. 22. Laws 2006, chapter 282, article 2, section 28, subdivision 4, is amended to 142.24read:142.25    Subd. 4. Early childhood Part C. For the expansion of early childhood Part C 142.26services:

142.27$400,000-0-.....2007

142.28EFFECTIVE DATE.This section is effective the day following final enactment.142.29G. PREVENTION142.30    Sec. 23. Laws 2005, First Special Session chapter 5, article 8, section 8, subdivision 2, 142.31as amended by Laws 2006, chapter 282, article 7, section 25, is amended to read:143.1    Subd. 2.  Community education aid. For community  education aid under Minnesota 143.2Statutes, section 
         124D.20:  

143.3$2,043,000.....2006143.4143.5$1,949,0001,942,000.....2007

143.6    The 2006 appropriation includes  $385,000 for 2005 and   $1,658,000 for 2006.  143.7    The 2007 appropriation includes  $184,000 for 2006 and   $1,765,000 $1,758,000143.8for 2007.143.9EFFECTIVE DATE.This section is effective the day following final enactment.143.10    Sec. 24. Laws 2005, First Special Session chapter 5, article 8, section 8, subdivision 5, 143.11as amended by Laws 2006, chapter 282, article 7, section 27, is amended to read:143.12    Subd. 5.  School-age care revenue. For extended day aid  under Minnesota Statutes, 143.13section 
         124D.22:  

143.14$17,000.....2006143.15$4,0006,000.....2007

143.16    The 2006 appropriation includes $4,000 for 2005 and $13,000  for 2006.  143.17    The 2007 appropriation includes  $1,000 for 2006 and  $3,000 $5,000 for 2007.  143.18EFFECTIVE DATE.This section is effective the day following final enactment.143.19H. SELF-SUFFICIENCY AND LIFELONG LEARNING143.20    Sec. 25. Laws 2005, First Special Session chapter 5, article 9, section 4, subdivision 2, 143.21is amended to read:143.22    Subd. 2. Adult basic education aid. For adult basic education aid under Minnesota 143.23Statutes:

143.24$36,518,000.....2006143.25143.26$36,540,00037,486,000.....2007

143.27    The 2006 appropriation includes $5,707,000 for 2005 and $30,811,000 for 2006.143.28    The 2007 appropriation includes $5,737,000 $3,654,000 for 2006 and $30,803,000143.29$33,832,000 for 2007.143.30EFFECTIVE DATE.This section is effective the day following final enactment.144.1ARTICLE 11144.2TECHNICAL AND CONFORMING AMENDMENTS144.3    Section 1. Minnesota Statutes 2006, section 122A.628, subdivision 2, is amended to 144.4read:144.5    Subd. 2. Revenue. A school district that is selected to participate in the schools 144.6mentoring schools program under this section may utilize its professional compensation 144.7revenue under section 
         122A.4142 122A.414, subdivision 4, to pay regional training sites 144.8for staff development and training services.144.9    Sec. 2. Minnesota Statutes 2006, section 123A.73, subdivision 8, is amended to read:144.10    Subd. 8. Taxable property. As of the effective date of a consolidation of districts or 144.11the dissolution of a district and its attachment to one or more existing districts pursuant 144.12to chapter 123A, and subject to the conditions of section 126C.42, subdivision 1, all 144.13the taxable property which is in the newly created or enlarged district and which was 144.14previously taxable for the payment of any statutory operating debt theretofore incurred by 144.15any preexisting district of which the taxable property was a part prior to the consolidation 144.16or dissolution and attachment shall remain taxable for the payment of that debt and shall 144.17not become taxable for the payment of any statutory operating debt theretofore incurred 144.18by any preexisting district of which the taxable property was not a part prior to the 144.19consolidation or dissolution and attachment. The amount of statutory operating debt 144.20attributable to that taxable property and to the newly created or enlarged district in which 144.21it is located, and the amount of a preexisting district's reserved fund balance reserve 144.22account for purposes of statutory operating debt reduction attributable to the newly created 144.23or enlarged district, shall be apportioned according to the proportion which the adjusted 144.24net tax capacity of that part of the preexisting district bears to the total adjusted net tax 144.25capacity of the entire preexisting district at the time of the consolidation or dissolution 144.26and attachment. This apportionment shall be made by the county auditor and shall 144.27be incorporated as an annex to the order of the commissioner dividing the assets and 144.28liabilities of the component districts. As used in this section, "statutory operating debt" 144.29shall have the meaning given it in section 
         123B.81. 144.30    Sec. 3. Minnesota Statutes 2006, section 123B.79, subdivision 6, is amended to read:144.31    Subd. 6. Account transfer for statutory operating debt. On June 30 of each year, 144.32a district may make a permanent transfer from the general fund account entitled "net 144.33unreserved general fund balance since statutory operating debt" to the account entitled 145.1"reserved fund balance reserve account for purposes of statutory operating debt reduction." 145.2The amount of the transfer is limited to the lesser of (a) the net unreserved general fund 145.3balance, or (b) the sum of the remaining statutory operating debt levies authorized for all 145.4future years according to section 126C.42, subdivision 1. If the net unreserved general 145.5fund balance is less than zero, the district may not make a transfer.145.6    Sec. 4. Minnesota Statutes 2006, section 123B.81, subdivision 2, is amended to read:145.7    Subd. 2. Statutory operating debt. If the amount of the operating debt is more 145.8than 2-1/2 percent of the most recent fiscal year's expenditure amount for the funds 145.9considered under subdivision 1, the net negative undesignated fund balance is defined as 145.10"statutory operating debt" for the purposes of this section and sectionssection 123B.83145.11and 126C.42, subdivision 1. 145.12    Sec. 5. Minnesota Statutes 2006, section 123B.81, subdivision 4, is amended to read:145.13    Subd. 4. Debt elimination. If an audit or other verification procedure conducted 145.14pursuant to subdivision 3 determines that a statutory operating debt exists, a district must 145.15follow the procedures set forth in this section 
         126C.42, subdivision 1, to eliminate this 145.16statutory operating debt. 145.17    Sec. 6. Minnesota Statutes 2006, section 123B.81, subdivision 7, is amended to read:145.18    Subd. 7. Applicability. This section and the provisions of section 126C.42, 145.19subdivision 1, are is applicable only to common, independent, and special school districts 145.20and districts formed pursuant to Laws 1967, chapter 822, as amended, and Laws 1969, 145.21chapters 775 and 1060, as amended. This section and the provisions of section 126C.42, 145.22subdivision 1, do does not apply to Independent School District No. 625. 145.23    Sec. 7. Minnesota Statutes 2006, section 123B.83, subdivision 2, is amended to read:145.24    Subd. 2. Net unreserved general fund balances. A school district must limit its 145.25expenditures so that its net unreserved general fund balance does not constitute statutory 145.26operating debt as defined in section 126C.42 under section 123B.81.145.27    Sec. 8. Minnesota Statutes 2006, section 124D.34, subdivision 7, is amended to read:145.28    Subd. 7. Foundation staff. The commissioner of education shall appoint the 145.29executive director of the foundation from three candidates nominated and submitted by the 145.30foundation board of directors and, as necessary, other staff who shall perform duties and 145.31have responsibilities solely related to the foundation. The employees appointed are not 146.1state employees under chapter 43A, but are covered under section 
         3.736. The employees 146.2may participate in the state health and state insurance plans for employees in unclassified 146.3service. The employees shall be supervised by the executive director. 146.4    The commissioner shall appoint from the Office of Lifework Development a liaison 146.5to the foundation board from the division in the department responsible for career and 146.6technical education.146.7    Sec. 9. Minnesota Statutes 2006, section 124D.65, subdivision 11, is amended to read:146.8    Subd. 11. Allocations from cooperative units. For the purposes of this section 146.9and section 125A.77, pupils of limited English proficiency enrolled in a cooperative 146.10or intermediate school district unit shall be counted by the school district of residence, 146.11and the cooperative unit shall allocate its approved expenditures for limited English 146.12proficiency programs among participating school districts. Limited English proficiency 146.13aid for services provided by a cooperative or intermediate school district shall be paid to 146.14the participating school districts. 146.15    Sec. 10. Minnesota Statutes 2006, section 125A.39, is amended to read:146.16125A.39 LOCAL INTERAGENCY AGREEMENTS.146.17    School boards and the county board may enter into agreements to cooperatively 146.18serve and provide funding for children with disabilities, under age five, and their families 146.19within a specified geographic area.146.20    The local interagency agreement must address, at a minimum, the following issues:146.21    (1) responsibilities of local agencies on local interagency early intervention 146.22committees (IEIC's), consistent with section 
         125A.38; 146.23    (2) assignment of financial responsibility for early intervention services;146.24    (3) methods to resolve intraagency and interagency disputes;146.25    (4) identification of current resources and recommendations about the allocation of 146.26additional state and federal early intervention funds under the auspices of United States 146.27Code, title 20, section 1471 et seq. (Part C, Public Law 102-119 108-446) and United 146.28States Code, title 20, section 631, et seq. (Chapter I, Public Law 89-313);146.29    (5) data collection; and146.30    (6) other components of the local early intervention system consistent with Public 146.31Law 102-119.146.32    Sec. 11. Minnesota Statutes 2006, section 125A.42, is amended to read:146.33125A.42 PROCEDURAL SAFEGUARDS; PARENT AND CHILD RIGHTS.147.1    (a) This section applies to local school and county boards for children from birth 147.2through age two who are eligible for Part H C, Public Law 102-119 108-446, and their 147.3families. This section must be consistent with the Individuals with Disabilities Education 147.4Act, United States Code, title 20, sections 1471 to 1485 (Part H C, Public Law 102-119147.5108-446), regulations adopted under United States Code, title 20, sections 1471 to 1485, 147.6and sections 
         125A.259 to 
         125A.48. 147.7    (b) A parent has the right to:147.8    (1) inspect and review early intervention records;147.9    (2) prior written notice of a proposed action in the parents' native language unless it 147.10is clearly not feasible to do so;147.11    (3) give consent to any proposed action;147.12    (4) selectively accept or decline any early intervention service; and147.13    (5) resolve issues regarding the identification, evaluation, or placement of the child, 147.14or the provision of appropriate early intervention services to the child and the child's 147.15family through an impartial due process hearing pursuant to section 
         125A.46. 147.16    (c) The eligible child has the right to have a surrogate parent appointed by a school 147.17district as required by section 
         125A.07. 147.18    Sec. 12. Minnesota Statutes 2006, section 125A.44, is amended to read:147.19125A.44 COMPLAINT PROCEDURE.147.20    (a) An individual or organization may file a written signed complaint with the 147.21commissioner of the state lead agency alleging that one or more requirements of the Code 147.22of Federal Regulations, title 34, part 303, is not being met. The complaint must include:147.23    (1) a statement that the state has violated the Individuals with Disabilities Education 147.24Act, United States Code, title 20, section 1471 et seq. (Part C, Public Law 102-119147.25108-446) or Code of Federal Regulations, title 34, section 303; and147.26    (2) the facts on which the complaint is based.147.27    (b) The commissioner of the state lead agency shall receive and coordinate with 147.28other state agencies the review and resolution of a complaint within 60 calendar days 147.29according to the state interagency agreement required under section 
         125A.48. The 147.30development and disposition of corrective action orders for nonschool agencies shall be 147.31determined by the State Agency Committee (SAC). Failure to comply with corrective 147.32orders may result in fiscal actions or other measures. 147.33    Sec. 13. Minnesota Statutes 2006, section 125A.45, is amended to read:147.34125A.45 INTERAGENCY DISPUTE PROCEDURE.148.1    (a) A dispute between a school board and a county board that is responsible for 148.2implementing the provisions of section 
         125A.29 regarding early identification, child and 148.3family assessment, service coordination, and IFSP development and implementation must 148.4be resolved according to this subdivision when the dispute involves services provided 148.5to children and families eligible under the Individuals with Disabilities Education Act, 148.6United States Code, title 20, section 1471 et seq. (Part C, Public Law 102-119 108-446). 148.7    (b) A dispute occurs when the school board and county board are unable to agree as 148.8to who is responsible to coordinate, provide, pay for, or facilitate payment for services 148.9from public and private sources.148.10    (c) Written and signed disputes must be filed with the local primary agency.148.11    (d) The local primary agency must attempt to resolve the matter with the involved 148.12school board and county board and may request mediation from the commissioner of the 148.13state lead agency for this purpose.148.14    (e) When interagency disputes have not been resolved within 30 calendar days, the 148.15local primary agency must request the commissioner of the state lead agency to review 148.16the matter with the commissioners of health and human services and make a decision. 148.17The commissioner must provide a consistent process for reviewing those procedures. The 148.18commissioners' decision is binding subject to the right of an aggrieved party to appeal to 148.19the state Court of Appeals.148.20    (f) The local primary agency must ensure that eligible children and their families 148.21receive early intervention services during resolution of a dispute. While a local dispute is 148.22pending, the local primary agency must either assign financial responsibility to an agency 148.23or pay for the service from the early intervention account under section 
         125A.35. If in 148.24resolving the dispute, it is determined that the assignment of financial responsibility was 148.25inappropriate, the responsibility for payment must be reassigned to the appropriate agency 148.26and the responsible agency must make arrangements for reimbursing any expenditures 148.27incurred by the agency originally assigned financial responsibility. 148.28    Sec. 14. Minnesota Statutes 2006, section 125B.15, is amended to read:148.29125B.15 INTERNET ACCESS FOR STUDENTS.148.30    (a) Recognizing the difference between school libraries, school computer labs, and 148.31school media centers, which serve unique educational purposes, and public libraries, 148.32which are designed for public inquiry, all computers at a school site with access to the 148.33Internet available for student use must be equipped to restrict, including by use of 148.34available software filtering technology or other effective methods, all student access 149.1to material that is reasonably believed to be obscene or child pornography or material 149.2harmful to minors under federal or state law.149.3    (b) A school site is not required to purchase filtering technology if the school site 149.4would incur more than incidental expense in making the purchase.149.5    (c) A school district receiving technology revenue under section 
         125B.25 125B.26149.6must prohibit, including through use of available software filtering technology or other 149.7effective methods, adult access to material that under federal or state law is reasonably 149.8believed to be obscene or child pornography. 149.9    (d) A school district, its agents or employees, are immune from liability for failure 149.10to comply with this section if they have made a good faith effort to comply with the 149.11requirements of this section.149.12    (e) "School site" means an education site as defined in section 
         123B.04, subdivision 149.131
         , or charter school under section 
         124D.10. 149.14    Sec. 15. Minnesota Statutes 2006, section 126C.01, subdivision 9, is amended to read:149.15    Subd. 9. Training and experience index. "Training and experience index" 149.16means a measure of a district's teacher training and experience relative to the education 149.17and experience of teachers in the state. The measure must be determined pursuant to 149.18Minnesota Statutes 1996, section 
         126C.11. 149.19    Sec. 16. Minnesota Statutes 2006, section 126C.05, subdivision 1, is amended to read:149.20    Subdivision 1. Pupil unit. Pupil units for each Minnesota resident pupil under the 149.21age of 21 or who meets the requirements of section 
         120A.20, subdivision 1, paragraph 149.22(c), in average daily membership enrolled in the district of residence, in another district 149.23under sections 
         123A.05 to 
         123A.08, 
         124D.03, 
         124D.06, 
         124D.07,124D.08, or 
         124D.68; 149.24in a charter school under section 
         124D.10; or for whom the resident district pays tuition 149.25under section 
         123A.18, 
         123A.22, 
         123A.30, 
         123A.32, 
         123A.44, 
         123A.488, 
         123B.88, 149.26subdivision 4
         , 
         124D.04, 
         124D.05, 
         125A.03 to 
         125A.24, 
         125A.51, or 
         125A.65, shall be 149.27counted according to this subdivision. 149.28    (a) A prekindergarten pupil with a disability who is enrolled in a program approved 149.29by the commissioner and has an individual education plan is counted as the ratio of the 149.30number of hours of assessment and education service to 825 times 
         1.25 with a minimum 149.31average daily membership of 0.28, but not more than 
         1.25 pupil units. 149.32    (b) A prekindergarten pupil who is assessed but determined not to be disabled is 149.33counted as the ratio of the number of hours of assessment service to 825 times 
         1.25. 150.1    (c) A kindergarten pupil with a disability who is enrolled in a program approved 150.2by the commissioner is counted as the ratio of the number of hours of assessment and 150.3education services required in the fiscal year by the pupil's individual education program 150.4plan to 875, but not more than one.150.5    (d) A kindergarten pupil who is not included in paragraph (c) is counted as .557 of a 150.6pupil unit for fiscal year 2000 and thereafter.150.7    (e) A pupil who is in any of grades 1 to 3 is counted as 
         1.115 pupil units for fiscal 150.8year 2000 and thereafter. 150.9    (f) A pupil who is any of grades 4 to 6 is counted as 
         1.06 pupil units for fiscal 150.10year 1995 and thereafter. 150.11    (g) A pupil who is in any of grades 7 to 12 is counted as 
         1.3 pupil units.150.12    (h) A pupil who is in the postsecondary enrollment options program is counted 150.13as 
         1.3 pupil units.150.14    Sec. 17. Minnesota Statutes 2006, section 126C.48, subdivision 7, is amended to read:150.15    Subd. 7. Reporting. For each tax settlement, the county auditor shall report 150.16to each school district by fund, the district tax settlement revenue defined in section 150.17123B.75, subdivision 5
         , paragraph (a), and the amount levied pursuant to section 126C.42, 150.18subdivision 1, on the form specified in section 
         276.10. The county auditor shall send to 150.19the district a copy of the spread levy report specified in section 
         275.124. 150.20    Sec. 18. Minnesota Statutes 2006, section 134.355, subdivision 9, is amended to read:150.21    Subd. 9. Telecommunications aid. An application for regional library 150.22telecommunications aid must, at a minimum, contain information to document the 150.23following:150.24    (1) the connections are adequate and employ an open network architecture that 150.25will ensure interconnectivity and interoperability with school districts, postsecondary 150.26education, or other governmental agencies;150.27    (2) that the connection is established through the most cost-effective means and that 150.28the regional library has explored and coordinated connections through school districts, 150.29postsecondary education, or other governmental agencies;150.30    (3) that the regional library system has filed an e-rate application; and150.31    (4) other information, as determined by the commissioner of children, families, and 150.32learning education, to ensure that connections are coordinated, efficient, and cost-effective, 150.33take advantage of discounts, and meet applicable state standards.151.1    The library system may include costs associated with cooperative arrangements with 151.2postsecondary institutions, school districts, and other governmental agencies.151.3    Sec. 19.  REPEALER.151.4Minnesota Statutes 2006, sections 123A.22, subdivision 11; and 123B.81, 151.5subdivision 8, are repealed.