1.1A bill for an act1.2relating to education finance; providing funding for prekindergarten through 1.3grade 12 education; authorizing rulemaking; appropriating money;amending 1.4Minnesota Statutes 2006, sections 120B.023, subdivision 2; 120B.131, 1.5subdivision 2; 120B.31, as amended; 120B.35, as amended; 120B.36, as 1.6amended; 120B.362; 122A.21; 123B.02, subdivision 21; 123B.59, subdivision 1; 1.7123B.62; 124D.04, subdivisions 3, 6, 8, 9; 124D.05, by adding a subdivision; 1.8124D.10, subdivision 20; 124D.55; 125A.65, by adding a subdivision; 125A.76, 1.9by adding a subdivision; 126C.10, subdivision 31, by adding a subdivision; 1.10126C.17, subdivision 9; 126C.21, subdivision 1; 126C.51; 126C.52, subdivision 1.112, by adding a subdivision; 126C.53; 126C.55; 127A.45, subdivision 16; 1.12Minnesota Statutes 2007 Supplement, sections 120B.021, subdivision 1; 1.13120B.024; 120B.30; 123B.143, subdivision 1; 124D.531, subdivision 1; 1.14126C.21, subdivision 3; 126C.44; Laws 2007, chapter 146, article 1, section 24, 1.15subdivisions 2, 3, 4, 5, 6, 7, 8; article 2, section 46, subdivisions 2, 3, 4, 6, 9, 13; 1.16article 3, sections 23, subdivision 2; 24, subdivisions 3, 4, 9; article 4, section 1.1716, subdivisions 2, 3, 6, 8; article 5, section 13, subdivisions 2, 3, 4, 5; article 7, 1.18section 4; article 9, section 17, subdivisions 2, 3, 4, 8, 9, 13; Laws 2007, First 1.19Special Session chapter 2, article 1, section 11, subdivisions 1, 2, 6; proposing 1.20coding for new law in Minnesota Statutes, chapters 120B; 121A; 124D; 127A; 1.21145; repealing Minnesota Statutes 2006, sections 121A.67; 125A.16; 125A.19; 1.22125A.20; 125A.57; Laws 2006, chapter 263, article 3, section 16; Laws 2007, 1.23First Special Session chapter 2, article 1, section 11, subdivisions 3, 4.1.24BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:1.25ARTICLE 11.26K-12 EDUCATION1.27    Section 1. Minnesota Statutes 2007 Supplement, section 120B.021, subdivision 1, 1.28is amended to read:1.29    Subdivision 1. Required academic standards.(a) The following subject areas 1.30are required for statewide accountability:1.31    (1) language arts;2.1    (2) mathematics;2.2    (3) science;2.3    (4) social studies, including history, geography, economics, and government and 2.4citizenship;2.5    (5) physical education;2.6    (6) health and physical education, for which locally developed academic standards 2.7apply; and2.8    (6) (7) the arts, for which statewide or locally developed academic standards apply, 2.9as determined by the school district. Public elementary and middle schools must offer at 2.10least three and require at least two of the following four arts areas: dance; music; theater; 2.11and visual arts. Public high schools must offer at least three and require at least one of the 2.12following five arts areas: media arts; dance; music; theater; and visual arts.2.13    (b) To satisfy the one-half credit physical education requirement under section 2.14120B.024, paragraph (a), clause (5), the state physical education standard under paragraph 2.15(a) must be consistent with either the six physical education standards developed by the 2.16department's quality teaching network or the six National Physical Education Standards 2.17developed by the National Association for Sport and Physical Education. To satisfy 2.18federal reporting requirements for continued funding under Title VII of the Physical 2.19Education for Progress Act, a school district must notify the department, if applicable, of 2.20its intent to comply with this subdivision.2.21    (c) The commissioner must submit proposed standards in science and social studies 2.22to the legislature by February 1, 2004.2.23    (d) For purposes of applicable federal law, the academic standards for language arts, 2.24mathematics, and science apply to all public school students, except the very few students 2.25with extreme cognitive or physical impairments for whom an individualized education 2.26plan team has determined that the required academic standards are inappropriate. 2.27An individualized education plan team that makes this determination must establish 2.28alternative standards.2.29    (e) A school district, no later than the 2007-2008 school year, must adopt graduation 2.30requirements that meet or exceed state graduation requirements established in law or 2.31rule. A school district that incorporates these state graduation requirements before the 2.322007-2008 school year must provide students who enter the 9th grade in or before 2.33the 2003-2004 school year the opportunity to earn a diploma based on existing locally 2.34established graduation requirements in effect when the students entered the 9th grade. 2.35District efforts to develop, implement, or improve instruction or curriculum as a result 3.1of the provisions of this section must be consistent with sections 
         120B.10, 
         120B.11, 3.2and 
         120B.20. 3.3    (f) The commissioner must include the contributions of Minnesota American Indian 3.4tribes and communities as they relate to the academic standards during the review and 3.5revision of the required academic standards.3.6EFFECTIVE DATE.This section is effective the day following final enactment 3.7except that paragraph (a), clause (5), applies to students entering the ninth grade in the 3.82009-2010 school year and later.3.9    Sec. 2. Minnesota Statutes 2006, section 120B.023, subdivision 2, is amended to read:3.10    Subd. 2. Revisions and reviews required. (a) The commissioner of education must 3.11revise and appropriately embed technology and information literacy standards consistent 3.12with recommendations from school media specialists into the state's academic standards 3.13and graduation requirements and implement a review cycle for state academic standards 3.14and related benchmarks, consistent with this subdivision. During each review cycle, the 3.15commissioner also must examine the alignment of each required academic standard and 3.16related benchmark with the knowledge and skills students need for college readiness and 3.17advanced work in the particular subject area.3.18    (b) The commissioner in the 2006-2007 school year must revise and align the state's 3.19academic standards and high school graduation requirements in mathematics to require 3.20that students satisfactorily complete the revised mathematics standards, beginning in the 3.212010-2011 school year. Under the revised standards:3.22    (1) students must satisfactorily complete an algebra I credit by the end of eighth 3.23grade; and3.24    (2) students scheduled to graduate in the 2014-2015 school year or later must 3.25satisfactorily complete an algebra II credit or its equivalent.3.26The commissioner also must ensure that the statewide mathematics assessments 3.27administered to students in grades 3 through 8 and 11 beginning in the 2010-2011 3.28school year are aligned with the state academic standards in mathematics. The statewide 3.2911th grade mathematics test administered to students under clause (2) beginning in 3.30the 2013-2014 school year must include algebra II test items that are aligned with 3.31corresponding state academic standards in mathematics. The commissioner must 3.32implement a review of the academic standards and related benchmarks in mathematics 3.33beginning in the 2015-2016 school year.4.1    (c) The commissioner in the 2007-2008 school year must revise and align the state's 4.2academic standards and high school graduation requirements in the arts to require that 4.3students satisfactorily complete the revised arts standards beginning in the 2010-2011 4.4school year. The commissioner must implement a review of the academic standards and 4.5related benchmarks in arts beginning in the 2016-2017 school year.4.6    (d) The commissioner in the 2008-2009 school year must revise and align the state's 4.7academic standards and high school graduation requirements in science to require that 4.8students satisfactorily complete the revised science standards, beginning in the 2011-2012 4.9school year. Under the revised standards, students scheduled to graduate in the 2014-2015 4.10school year or later must satisfactorily complete a chemistry or physics credit. The 4.11commissioner must implement a review of the academic standards and related benchmarks 4.12in science beginning in the 2017-2018 school year.4.13    (e) The commissioner in the 2009-2010 school year must revise and align the state's 4.14academic standards and high school graduation requirements in language arts to require 4.15that students satisfactorily complete the revised language arts standards beginning in the 4.162012-2013 school year. The commissioner must implement a review of the academic 4.17standards and related benchmarks in language arts beginning in the 2018-2019 school year.4.18    (f) The commissioner in the 2010-2011 school year must revise and align the state's 4.19academic standards and high school graduation requirements in social studies to require 4.20that students satisfactorily complete the revised social studies standards beginning in the 4.212013-2014 school year. The commissioner must implement a review of the academic 4.22standards and related benchmarks in social studies beginning in the 2019-2020 school year.4.23    (g) The commissioner in the 2018-2019 school year must revise and align the state's 4.24standards and high school graduation requirements in physical education, consistent with 4.25sections 120B.021, subdivision 1, paragraph (a), clause (5), and 120B.024, paragraph (a), 4.26clause (6), to require students to satisfactorily complete the revised physical education 4.27standards beginning in the 2021-2022 school year. The commissioner must implement 4.28a review of the physical education standards and related benchmarks beginning in the 4.292029-2030 school year.4.30    (h) School districts and charter schools must revise and align local academic 4.31standards and high school graduation requirements in health, physical education, world 4.32languages, and career and technical education to require students to complete the revised 4.33standards beginning in a school year determined by the school district or charter school. 4.34School districts and charter schools must formally establish a periodic review cycle for 4.35the academic standards and related benchmarks in health, physical education, world 4.36languages, and career and technical education.5.1EFFECTIVE DATE.This section is effective the day following final enactment 5.2and applies to students entering ninth grade in the 2009-2010 school year and later.5.3    Sec. 3. Minnesota Statutes 2007 Supplement, section 120B.024, is amended to read:5.4120B.024 GRADUATION REQUIREMENTS; COURSE CREDITS.5.5    (a) Students beginning 9th grade in the 2004-2005 school year and later must 5.6successfully complete the following high school level course credits for graduation:5.7    (1) four credits of language arts;5.8    (2) three credits of mathematics, encompassing at least algebra, geometry, statistics, 5.9and probability sufficient to satisfy the academic standard;5.10    (3) three credits of science, including at least one credit in biology;5.11    (4) three and one-half credits of social studies, encompassing at least United 5.12States history, geography, government and citizenship, world history, and economics or 5.13three credits of social studies encompassing at least United States history, geography, 5.14government and citizenship, and world history, and one-half credit of economics taught in 5.15a school's social studies, agriculture education, or business department;5.16    (5) one credit in the arts; and5.17    (6) one-half credit of physical education; and5.18    (7) a minimum of seven 6-1/2 elective course credits.5.19    A course credit is equivalent to a student successfully completing an academic 5.20year of study or a student mastering the applicable subject matter, as determined by the 5.21local school district.5.22    (b) An agriculture science course may fulfill a science credit requirement in addition 5.23to the specified science credits in biology and chemistry or physics under paragraph (a), 5.24clause (3).5.25    (c) A career and technical education course may fulfill a science, mathematics, or 5.26arts credit requirement in addition to the specified science, mathematics, or arts credits 5.27under paragraph (a), clause (2), (3), or (5).5.28EFFECTIVE DATE.This section is effective the day following final enactment 5.29and applies to students entering ninth grade in the 2009-2010 school year and later.5.30    Sec. 4. Minnesota Statutes 2006, section 120B.131, subdivision 2, is amended to read:5.31    Subd. 2. Reimbursement for examination fees. The state may reimburse 5.32college-level examination program (CLEP) fees for a Minnesota public or nonpublic high 5.33school student who has successfully completed one or more college-level courses in high 6.1school in the subject matter of each examination in the following subjects: composition 6.2and literature, mathematics and science, social sciences and history, foreign languages, and 6.3business and humanities. The state may reimburse each student for up to six examination 6.4fees. The commissioner shall establish application procedures and a process and schedule 6.5for fee reimbursements. The commissioner must give priority to reimburse the CLEP 6.6examination fees of students of low-income families.6.7EFFECTIVE DATE.This section is effective the day following final enactment.6.8    Sec. 5. [120B.299] DEFINITIONS.6.9    Subdivision 1.Definitions.The definitions in this section apply to this chapter.6.10    Subd. 2.Growth."Growth" compares the difference between a student's 6.11achievement score at two distinct points in time.6.12    Subd. 3.Value-added."Value-added" is the amount of achievement a student 6.13demonstrates above an established baseline.6.14    Subd. 4.Growth-based value-added."Growth-based value-added" is a 6.15value-added system of assessments that measures the difference between an established 6.16baseline of growth and a student's growth over time.6.17    Subd. 5.Adequate yearly progress."Adequate yearly progress" compares the 6.18average achievement of two different groups of students at two different points in time. 6.19    Subd. 6.State growth norm."State growth norm" is an established statewide 6.20percentile or standard applicable to all students in a particular grade benchmarked to an 6.21established school year. Beginning in the 2008-2009 school year, the state growth norm 6.22is benchmarked to 2006-2007 school year data until the commissioner next changes the 6.23vertically linked scale score. Each time the commissioner changes the vertically linked 6.24scale score, a recognized Minnesota assessment group composed of assessment and 6.25evaluation directors and staff and researchers, in collaboration with the Independent Office 6.26of Educational Accountability under section 120B.31, subdivision 3, must recommend 6.27a new state growth norm that the commissioner must consider when revising standards 6.28under section 120B.023, subdivision 2. For each newly established state growth norm, the 6.29commissioner also must establish criteria for identifying schools and school districts that 6.30demonstrate accelerated growth in order to advance educators' professional development 6.31and to replicate programs that succeed in meeting students' diverse learning needs.6.32EFFECTIVE DATE.This section is effective the day following final enactment.7.1    Sec. 6. Minnesota Statutes 2007 Supplement, section 120B.30, is amended to read:7.2120B.30 STATEWIDE TESTING AND REPORTING SYSTEM.7.3    Subdivision 1. Statewide testing. (a) The commissioner, with advice from experts 7.4with appropriate technical qualifications and experience and stakeholders, consistent with 7.5subdivision 1a, shall include in the comprehensive assessment system, for each grade 7.6level to be tested, state-constructed tests developed from and aligned with the state's 7.7required academic standards under section 
         120B.021 and administered annually to all 7.8students in grades 3 through 8 and at the high school level. A state-developed test in a 7.9subject other than writing, developed after the 2002-2003 school year, must include both 7.10machine-scoreable and constructed response questions. The commissioner shall establish 7.11one or more months during which schools shall administer the tests to students each 7.12school year. For students enrolled in grade 8 before the 2005-2006 school year, only 7.13Minnesota basic skills tests in reading, mathematics, and writing shall fulfill students' 7.14basic skills testing requirements for a passing state notation. The passing scores of basic 7.15skills tests in reading and mathematics are the equivalent of 75 percent correct for students 7.16entering grade 9 in 1997 and thereafter, as based on the first uniform test administration of7.17administered in February 1998.7.18    (b) For students enrolled in grade 8 in the 2005-2006 school year and later, only the 7.19following options shall fulfill students' state graduation test requirements:7.20    (1) for reading and mathematics:7.21    (i) obtaining an achievement level equivalent to or greater than proficient as 7.22determined through a standard setting process on the Minnesota comprehensive 7.23assessments in grade 10 for reading and grade 11 for mathematics or achieving a passing 7.24score as determined through a standard setting process on the graduation-required 7.25assessment for diploma in grade 10 for reading and grade 11 for mathematics or 7.26subsequent retests;7.27    (ii) achieving a passing score as determined through a standard setting process on the 7.28state-identified language proficiency test in reading and the mathematics test for English 7.29language learners or the graduation-required assessment for diploma equivalent of those 7.30assessments for students designated as English language learners;7.31    (iii) achieving an individual passing score on the graduation-required assessment 7.32for diploma as determined by appropriate state guidelines for students with an individual 7.33education plan or 504 plan;7.34    (iv) obtaining achievement level equivalent to or greater than proficient as 7.35determined through a standard setting process on the state-identified alternate assessment 8.1or assessments in grade 10 for reading and grade 11 for mathematics for students with 8.2an individual education plan; or8.3    (v) achieving an individual passing score on the state-identified alternate assessment 8.4or assessments as determined by appropriate state guidelines for students with an 8.5individual education plan; and8.6    (2) for writing:8.7    (i) achieving a passing score on the graduation-required assessment for diploma;8.8    (ii) achieving a passing score as determined through a standard setting process on 8.9the state-identified language proficiency test in writing for students designated as English 8.10language learners;8.11    (iii) achieving an individual passing score on the graduation-required assessment 8.12for diploma as determined by appropriate state guidelines for students with an individual 8.13education plan or 504 plan; or8.14    (iv) achieving an individual passing score on the state-identified alternate assessment 8.15or assessments as determined by appropriate state guidelines for students with an 8.16individual education plan.8.17     (c) The 3rd through 8th grade and high school level test results shall be available 8.18to districts for diagnostic purposes affecting student learning and district instruction and 8.19curriculum, and for establishing educational accountability. The commissioner must 8.20disseminate to the public the test results upon receiving those results.8.21     (d) State tests must be constructed and aligned with state academic standards. The8.22commissioner shall determine the testing process and the order of administration shall be 8.23determined by the commissioner. The statewide results shall be aggregated at the site and 8.24district level, consistent with subdivision 1a.8.25     (e) In addition to the testing and reporting requirements under this section, the 8.26commissioner shall include the following components in the statewide public reporting 8.27system:8.28    (1) uniform statewide testing of all students in grades 3 through 8 and at the high 8.29school level that provides appropriate, technically sound accommodations, alternate 8.30assessments, or exemptions consistent with applicable federal law, only with parent or 8.31guardian approval, for those very few students for whom the student's individual education 8.32plan team under sections 
         125A.05 and 
         125A.06 determines that the general statewide test 8.33is inappropriate for a student, or for a limited English proficiency student under section 8.34124D.59, subdivision 2
         ;9.1    (2) educational indicators that can be aggregated and compared across school 9.2districts and across time on a statewide basis, including average daily attendance, high 9.3school graduation rates, and high school drop-out rates by age and grade level;9.4    (3) state results on the American College Test; and9.5    (4) state results from participation in the National Assessment of Educational 9.6Progress so that the state can benchmark its performance against the nation and other 9.7states, and, where possible, against other countries, and contribute to the national effort 9.8to monitor achievement.9.9    Subd. 1a. Statewide and local assessments; results. (a) The commissioner must 9.10develop reading, mathematics, and science assessments aligned with state academic 9.11standards that districts and sites must use to monitor student growth toward achieving 9.12those standards. The commissioner must not develop statewide assessments for academic 9.13standards in social studies, health and physical education, and the arts. The commissioner 9.14must require:9.15    (1) annual reading and mathematics assessments in grades 3 through 8 and at the 9.16high school level for the 2005-2006 school year and later; and9.17    (2) annual science assessments in one grade in the grades 3 through 5 span, the 9.18grades 6 through 98 span, and a life sciences assessment in the grades 109 through 12 9.19span for the 2007-2008 school year and later.9.20    (b) The commissioner must ensure that all statewide tests administered to elementary 9.21and secondary students measure students' academic knowledge and skills and not students' 9.22values, attitudes, and beliefs.9.23    (c) Reporting of assessment results must:9.24    (1) provide timely, useful, and understandable information on the performance of 9.25individual students, schools, school districts, and the state;9.26    (2) include, by no later than the 2008-2009 school year, a growth-based value-added 9.27component that is in addition to a measure for student achievement growth over time9.28indicator of student achievement under section 120B.35, subdivision 3, paragraph (b); and9.29    (3)(i) for students enrolled in grade 8 before the 2005-2006 school year, determine 9.30whether students have met the state's basic skills requirements; and9.31    (ii) for students enrolled in grade 8 in the 2005-2006 school year and later, determine 9.32whether students have met the state's academic standards.9.33    (d) Consistent with applicable federal law and subdivision 1, paragraph (d), clause 9.34(1), the commissioner must include appropriate, technically sound accommodations or 9.35alternative assessments for the very few students with disabilities for whom statewide 9.36assessments are inappropriate and for students with limited English proficiency.10.1    (e) A school, school district, and charter school must administer statewide 10.2assessments under this section, as the assessments become available, to evaluate student 10.3progress in achieving the proficiency in the context of the state's grade level academic 10.4standards. If a state assessment is not available, a school, school district, and charter 10.5school must determine locally if a student has met the required academic standards. A 10.6school, school district, or charter school may use a student's performance on a statewide 10.7assessment as one of multiple criteria to determine grade promotion or retention. A 10.8school, school district, or charter school may use a high school student's performance on a 10.9statewide assessment as a percentage of the student's final grade in a course, or place a 10.10student's assessment score on the student's transcript.10.11    Subd. 2. Department of Education assistance. The Department of Education 10.12shall contract for professional and technical services according to competitive bidding 10.13procedures under chapter 16C for purposes of this section.10.14    Subd. 3. Reporting. The commissioner shall report test data publicly and to 10.15stakeholders, including the performance achievement levels developed from students' 10.16unweighted test scores in each tested subject and a listing of demographic factors that 10.17strongly correlate with student performance. The commissioner shall also report data that 10.18compares performance results among school sites, school districts, Minnesota and other 10.19states, and Minnesota and other nations. The commissioner shall disseminate to schools 10.20and school districts a more comprehensive report containing testing information that 10.21meets local needs for evaluating instruction and curriculum.10.22    Subd. 4. Access to tests. The commissioner must adopt and publish a policy 10.23to provide public and parental access for review of basic skills tests, Minnesota 10.24Comprehensive Assessments, or any other such statewide test and assessment. Upon 10.25receiving a written request, the commissioner must make available to parents or guardians 10.26a copy of their student's actual responses to the test questions to be reviewed by the 10.27parent for their review.10.28EFFECTIVE DATE.This section is effective the day following final enactment.10.29    Sec. 7. Minnesota Statutes 2006, section 120B.31, as amended by Laws 2007, chapter 10.30146, article 2, section 10, is amended to read:10.31120B.31 SYSTEM ACCOUNTABILITY AND STATISTICAL 10.32ADJUSTMENTS.10.33    Subdivision 1. Educational accountability and public reporting. Consistent 10.34with the process direction to adopt a results-oriented graduation rule statewide academic 11.1standards under section 
         120B.02, the department, in consultation with education and other 11.2system stakeholders, must establish maintain a coordinated and comprehensive system of 11.3educational accountability and public reporting that promotes higher greater academic 11.4achievement, preparation for higher academic education, preparation for the world of 11.5work, citizenship as outlined under sections 120B.021, subdivision 1, clause (4), and 11.6120B.024, paragraph (a), clause (4), and the arts. 11.7    Subd. 2. Statewide testing. Each school year, all school districts shall give a 11.8uniform statewide test to students at specified grades to provide information on the status, 11.9needs and performance of Minnesota students.11.10    Subd. 3. Educational accountability. (a) The Independent Office of Educational 11.11Accountability, as authorized by Laws 1997, First Special Session chapter 4, article 5, 11.12section 28, subdivision 2, is established, and shall be funded through the Board of Regents 11.13of the University of Minnesota. The office shall advise the education committees of 11.14the legislature and the commissioner of education, at least on a biennial basis, on the 11.15degree to which the statewide educational accountability and reporting system includes a 11.16comprehensive assessment framework that measures school accountability for students 11.17achieving the goals described in the state's results-oriented high school graduation 11.18rule. The office shall determine and annually report to the legislature whether and how 11.19effectively: 11.20    (1) the statewide system of educational accountability utilizes uses multiple 11.21indicators to provide valid and reliable comparative and contextual data on students, 11.22schools, districts, and the state, and if not, recommend ways to improve the accountability 11.23reporting system;11.24    (2) the commissioner makes statistical adjustments when reporting student data over 11.25time, consistent with clause (4);11.26    (3) the commissioner uses indicators of student achievement growth a growth-based 11.27value-added indicator of student achievement over time and a value-added assessment 11.28model that estimates the effects of the school and school district on student achievement to 11.29measure school performance, consistent with section 
         120B.36, subdivision 1 120B.35, 11.30subdivision 3, paragraph (b);11.31    (4) the commissioner makes data available on students who do not pass one or more 11.32of the state's required GRAD tests and do not receive a diploma as a consequence, and 11.33categorizes these data according to gender, race, eligibility for free or reduced lunch, and 11.34English language proficiency; and11.35    (5) the commissioner fulfills the requirements under section 
         127A.095, subdivision 2.12.1    (b) When the office reviews the statewide educational accountability and reporting 12.2system, it shall also consider:12.3    (1) the objectivity and neutrality of the state's educational accountability system; and12.4    (2) the impact of a testing program on school curriculum and student learning.12.5    Subd. 4. Statistical adjustments; student performance data. In developing12.6managing policies and assessment processes to hold schools and districts accountable 12.7for high levels of academic standards under section 
         120B.021, the commissioner shall 12.8aggregate student data over time to report student performance and growth levels 12.9measured at the school, school district, regional, or and statewide level. When collecting 12.10and reporting the performance data, the commissioner shall: (1) acknowledge the impact 12.11of significant demographic factors such as residential instability, the number of single 12.12parent families, parents' level of education, and parents' income level on school outcomes; 12.13and (2) organize and report the data so that state and local policy makers can understand 12.14the educational implications of changes in districts' demographic profiles over time. Any 12.15report the commissioner disseminates containing summary data on student performance 12.16must integrate student performance and the demographic factors that strongly correlate 12.17with that performance.12.18EFFECTIVE DATE.This section is effective the day following final enactment.12.19    Sec. 8. Minnesota Statutes 2006, section 120B.35, as amended by Laws 2007, chapter 12.20147, article 8, section 38, is amended to read:12.21120B.35 STUDENT ACADEMIC ACHIEVEMENT AND PROGRESS12.22GROWTH.12.23    Subdivision 1. Adequate yearly progress of schools and students School and 12.24student indicators of growth and achievement. The commissioner must develop 12.25and implement maintain a system for measuring and reporting academic achievement 12.26and individual student progress growth, consistent with the statewide educational 12.27accountability and reporting system. The system components of the system must measure 12.28the adequate yearly progress of schools and  the growth of individual students: students' 12.29current achievement in schools under subdivision 2; and individual students' educational 12.30progress growth over time under subdivision 3. The system also must include statewide 12.31measures of student academic achievement growth that identify schools with high levels 12.32of achievement growth, and also schools with low levels of achievement growth that need 12.33improvement. When determining a school's effect, the data must include both statewide 12.34measures of student achievement and, to the extent annual tests are administered,13.1indicators of achievement growth that take into account a student's prior achievement. 13.2Indicators of achievement and prior achievement must be based on highly reliable 13.3statewide or districtwide assessments. Indicators that take into account a student's prior 13.4achievement must not be used to disregard a school's low achievement or to exclude 13.5a school from a program to improve low achievement levels. The commissioner by 13.6January 15, 2002, must submit a plan for integrating these components to the chairs of 13.7the legislative committees having policy and budgetary responsibilities for elementary 13.8and secondary education.13.9    Subd. 2. Expectations for federally mandated student academic achievement.13.10    (a) Each school year, a school district must determine if the student achievement levels 13.11at each school site meet state and local federally mandated expectations. If student 13.12achievement levels at a school site do not meet state and local federally mandated13.13expectations and the site has not made adequate yearly progress for two consecutive 13.14school years, beginning with the 2001-2002 school year, the district must work with the 13.15school site to adopt a plan to raise student achievement levels to meet state and local13.16federally mandated expectations. The commissioner of education shall establish student 13.17academic achievement levels to comply with this paragraph.13.18    (b) School sites identified as not meeting federally mandated expectations must 13.19develop continuous improvement plans in order to meet state and local federally mandated13.20expectations for student academic achievement. The department, at a district's request, 13.21must assist the district and the school site in developing a plan to improve student 13.22achievement. The plan must include parental involvement components.13.23    (c) The commissioner must:13.24    (1) provide assistance to assist school sites and districts identified as not meeting 13.25federally mandated expectations; and13.26    (2) provide technical assistance to schools that integrate student progress measures 13.27under subdivision 3 in the school continuous improvement plan.13.28    (d) The commissioner shall establish and maintain a continuous improvement Web 13.29site designed to make data on every school and district available to parents, teachers, 13.30administrators, community members, and the general public.13.31    Subd. 3. Student progress assessment growth; other state measures. (a) 13.32The state's educational assessment system component measuring individual students' 13.33educational progress must be growth is based, to the extent annual tests are administered,13.34on indicators of achievement growth that show an individual student's prior achievement. 13.35Indicators of achievement and prior achievement must be are based on highly reliable 13.36statewide or districtwide assessments.14.1    (b) The commissioner must identify effective models for measuring individual 14.2student progress that enable a school district or school site to perform gains-based 14.3analysis, including evaluating the effects of the teacher, school, and school district on 14.4student achievement over time. At least one model must be a "value-added" assessment 14.5model that reliably estimates those effects for classroom settings where a single teacher 14.6teaches multiple subjects to the same group of students, for team teaching arrangements, 14.7and for other teaching circumstances. use a growth-based value-added system. The 14.8commissioner must apply the state growth norm to students in grades 4 through 8 14.9beginning in the 2008-2009 school year, consistent with section 120B.299, subdivision 14.106, initially benchmarking the state growth norm to 2006-2007 school year data. The 14.11model must allow the user to:14.12    (1) report student growth at and above the state norm; and14.13    (2) for all student categories with a cell size of at least 20, report and compare 14.14aggregated and disaggregated state growth data using the nine student categories identified 14.15under the federal 2001 No Child Left Behind Act and two student gender categories of 14.16male and female, respectively. The model must measure the effects that teacher teams 14.17within a grade, teacher teams across an entire grade, the school, and the school district 14.18have on student growth. The model must not compile test results for teacher teams within 14.19a grade or across a grade unless the test results encompass data on three or more teachers.14.20    (c) If a district has an accountability plan that includes gains-based analysis or 14.21"value-added" assessment, the commissioner shall, to the extent practicable, incorporate 14.22those measures in determining whether the district or school site meets expectations. The 14.23department must coordinate with the district in evaluating school sites and continuous 14.24improvement plans, consistent with best practices. If a district has an accountability 14.25plan that includes other growth-based value-added analysis, the commissioner may, to 14.26the extent practicable and consistent with this section, incorporate those measures in 14.27determining whether the district or school site shows growth, including accelerated growth.14.28    (d) When reporting student performance under section 120B.36, subdivision 1, the 14.29commissioner annually, beginning July 1, 2011, must report two core measures indicating 14.30the extent to which current high school graduates are being prepared for postsecondary 14.31academic and career opportunities:14.32    (1) a preparation measure indicating the number and percentage of high school 14.33graduates in the most recent school year who completed course work important to 14.34preparing them for postsecondary academic and career opportunities, consistent with the 14.35core academic subjects required for admission to Minnesota's public four-year colleges 14.36and universities as determined by the Office of Higher Education under chapter 136A; and15.1    (2) a rigorous coursework measure indicating the number and percentage of high 15.2school graduates in the most recent school year who successfully completed one or more 15.3college-level advanced placement, international baccalaureate, postsecondary enrollment 15.4options including concurrent enrollment, other rigorous courses of study under section 15.5120B.021, subdivision 1a, or industry certification courses or programs.15.6When reporting the core measures under clauses (1) and (2), the commissioner must also 15.7analyze and report separate categories of information using the nine student categories 15.8identified under the federal 2001 No Child Left Behind Act and two student gender 15.9categories of male and female, respectively.15.10    (e) When reporting student performance under section 120B.36, subdivision 1, the 15.11commissioner annually, beginning July 1, 2011, must include summary data showing 15.12students' average self-reported sense of school safety, engagement in school, and the 15.13quality of students' relationship with teachers, administrators, and other students. The 15.14commissioner must gather these data consistently from students in grade 4 or 5, in one 15.15grade level in grades 6 through 8, and in one grade level in high school, as determined by 15.16the commissioner in consultation with recognized and qualified experts. All data received, 15.17collected, or created that are used to generate the summary data under this paragraph are 15.18nonpublic data under section 13.02, subdivision 9.15.19    Subd. 4. Improving schools. Consistent with the requirements of this section, the 15.20commissioner of education must establish a second achievement benchmark to identify 15.21improving schools. The commissioner must recommend to annually report to the public 15.22and  the legislature by February 15, 2002, indicators in addition to the achievement 15.23benchmark for identifying improving schools, including an indicator requiring a school to 15.24demonstrate ongoing successful use of best teaching practices best practices learned from 15.25those schools that demonstrate accelerated growth compared to the state growth norm.15.26    Subd. 5. Improving graduation rates for students with emotional or behavioral 15.27disorders. (a) A district must develop strategies in conjunction with parents of students 15.28with emotional or behavioral disorders and the county board responsible for implementing 15.29sections 
         245.487 to 
         245.4889 to keep students with emotional or behavioral disorders in 15.30school, when the district has a drop-out rate for students with an emotional or behavioral 15.31disorder in grades 9 through 12 exceeding 25 percent. 15.32    (b) A district must develop a plan in conjunction with parents of students with 15.33emotional or behavioral disorders and the local mental health authority to increase the 15.34graduation rates of students with emotional or behavioral disorders. A district with a 15.35drop-out rate for children with an emotional or behavioral disturbance in grades 9 through 16.112 that is in the top 25 percent of all districts shall submit a plan for review and oversight 16.2to the commissioner.16.3EFFECTIVE DATE.Subdivision 3, paragraph (b), applies to students in the 16.42009-2010 school year and later. Subdivision 3, paragraph (d), applies to students in the 16.52010-2011 school year and later. Subdivision 3, paragraph (e), applies to high school 16.6students in the 2009-2010 school year and later, and to students in any grades 4 through 8 16.7in the 2010-2011 school year and later, consistent with the commissioner's grade level 16.8determinations. Subdivision 4 applies in the 2011-2012 school year and later.16.9    Sec. 9. Minnesota Statutes 2006, section 120B.36, as amended by Laws 2007, chapter 16.10146, article 2, section 11, is amended to read:16.11120B.36 SCHOOL ACCOUNTABILITY; APPEALS PROCESS.16.12    Subdivision 1. School performance report cards. (a) The commissioner shall 16.13use objective criteria based on levels of student performance to report at least student 16.14academic performance under section 120B.35, subdivision 2, the percentages of students 16.15at and above the state growth norm under section 120B.35, subdivision 3, paragraph (b), 16.16school safety and student engagement under section 120B.35, subdivision 3, paragraph 16.17(e), rigorous coursework under section 120B.35, subdivision 3, paragraph (d), two 16.18separate student-to-teacher ratios that clearly indicate the definition of teacher consistent 16.19with sections 
         122A.06 and 
         122A.15 for purposes of determining these ratios, and staff 16.20characteristics excluding salaries, with a value-added component added no later than 16.21the 2008-2009 school year student enrollment demographics, district mobility, and 16.22extracurricular activities. The report must indicate a school's adequate yearly progress 16.23status, and must not set any designations applicable to high- and low-performing schools 16.24due solely to adequate yearly progress status.16.25    (b) The commissioner shall develop, annually update, and post on the department 16.26Web site school performance report cards. 16.27    (c) The commissioner must make available the first performance report cards by 16.28November 2003, and during the beginning of each school year thereafter.16.29    (d) A school or district may appeal its adequate yearly progress status in writing to 16.30the commissioner within 30 days of receiving the notice of its status. The commissioner's 16.31decision to uphold or deny an appeal is final.16.32    (e) School performance report cards card data are nonpublic data under section 16.3313.02, subdivision 9
         , until not later than ten days after the appeal procedure described in 17.1paragraph (d) concludes. The department shall annually post school performance report 17.2cards to its public Web site no later than September 1. 17.3    Subd. 2. Adequate yearly progress data. All data the department receives, 17.4collects, or creates for purposes of determining to determine adequate yearly progress 17.5designations status under Public Law 107-110, section 1116, set state growth norms, and 17.6determine student growth are nonpublic data under section 
         13.02, subdivision 9, until not 17.7later than ten days after the appeal procedure described in subdivision 1, paragraph (d), 17.8concludes. Districts must provide parents sufficiently detailed summary data to permit 17.9parents to appeal under Public Law 107-110, section 1116(b)(2). The department shall 17.10annually post federally mandated adequate yearly progress data and state student growth 17.11data to its public Web site no later than September 1. 17.12EFFECTIVE DATE.This section is effective the day following final enactment. 17.13    Sec. 10. Minnesota Statutes 2006, section 120B.362, is amended to read:17.14120B.362 GROWTH-BASED VALUE-ADDED ASSESSMENT PROGRAM.17.15    (a) The commissioner of education must implement a growth-based value-added 17.16assessment program to assist school districts, public schools, and charter schools in 17.17assessing and reporting individual students' growth in academic achievement under section 17.18120B.30, subdivision 1a
         . The program must use assessments of individual students' 17.19academic achievement to make longitudinal comparisons of each student's academic 17.20growth over time. School districts, public schools, and charter schools may apply to the 17.21commissioner to participate in the initial trial program using a form and in the manner the 17.22commissioner prescribes. The commissioner must select program participants from urban, 17.23suburban, and rural areas throughout the state.17.24    (b) The commissioner may issue a request for proposals to contract with an 17.25organization that provides a value-added assessment model that reliably estimates school 17.26and school district effects on students' academic achievement over time. The model the 17.27commissioner selects must accommodate diverse data and must use each student's test 17.28data across grades. Data on individual teachers generated under the model are personnel 17.29data under section 13.43.17.30    (c) The contract under paragraph (b) must be consistent with the definition of "best 17.31value" under section 16C.02, subdivision 4.17.32EFFECTIVE DATE.This section is effective the day following final enactment.18.1    Sec. 11. Minnesota Statutes 2006, section 122A.21, is amended to read:18.2122A.21 TEACHERS' AND ADMINISTRATORS' LICENSES; FEES.18.3    Subdivision 1.Licensure applications. Each application for the issuance, renewal, 18.4or extension of a license to teach, including applications for licensure via portfolio under 18.5subdivision 2, must be accompanied by a processing fee of $57. Each application for 18.6issuing, renewing, or extending the license of a school administrator or supervisor must 18.7be accompanied by a processing fee in the amount set by the Board of Teaching. The 18.8processing fee for a teacher's license and for the licenses of supervisory personnel must 18.9be paid to the executive secretary of the appropriate board. The executive secretary of 18.10the board shall deposit the fees with the commissioner of finance. The fees as set by the 18.11board are nonrefundable for applicants not qualifying for a license. However, a fee must 18.12be refunded by the commissioner of finance in any case in which the applicant already 18.13holds a valid unexpired license. The board may waive or reduce fees for applicants who 18.14apply at the same time for more than one license.18.15    Subd. 2.Licensure via portfolio.(a) A candidate seeking licensure via portfolio 18.16must submit a $75 fee to the Educator Licensing Division at the department to determine 18.17the candidate's eligibility for licensure via portfolio. An eligible candidate may use 18.18licensure via portfolio to obtain an initial licensure or to add a licensure field, consistent 18.19with the applicable Board of Teaching licensure rules.18.20    (b) A candidate for initial licensure must submit to the Educator Licensing Division 18.21at the department one portfolio demonstrating pedagogical competence and one portfolio 18.22demonstrating content competence.18.23    (c) A candidate seeking to add a licensure field must submit to the Educator 18.24Licensing Division at the department one portfolio demonstrating content competence.18.25    (d) A candidate must pay to the executive secretary of the Board of Teaching a 18.26$300 fee for the first portfolio submitted for review and a $200 fee for any portfolio 18.27submitted subsequently. The fees must be paid to the executive secretary of the Board of 18.28Teaching. The revenue generated from the fee must be deposited in an education licensure 18.29portfolio account in the special revenue fund. The fees set by the Board of Teaching are 18.30nonrefundable for applicants not qualifying for a license. The Board of Teaching may 18.31waive or reduce fees for candidates based on financial need.18.32    Sec. 12. [121A.215] LOCAL SCHOOL DISTRICT WELLNESS POLICIES; 18.33WEB SITE.18.34    When available, a school district must post its current local school wellness policy 18.35on its Web site.19.1EFFECTIVE DATE.This section is effective the day following final enactment.19.2    Sec. 13. Minnesota Statutes 2006, section 123B.02, subdivision 21, is amended to read:19.3    Subd. 21. Wind energy conversion system. The board, or more than one board 19.4acting jointly under the authority granted by section 471.59, may construct, acquire, own 19.5in whole or in part, operate, and sell and retain and spend the payment received from 19.6selling energy from a wind energy conversion system, as defined in section 
         216C.06, 19.7subdivision 19
         . The board's share of the installed capacity of the wind energy conversion 19.8systems authorized by this subdivision must not exceed 3.3 megawatts of nameplate 19.9capacity. A board owning, operating, or selling energy from a wind energy conversion 19.10system must integrate information about wind energy conversion systems in its educational 19.11programming. The board, or more than one board acting jointly under the authority 19.12granted by section 471.59, may be a limited partner in a partnership, a member of a limited 19.13liability company, or a shareholder in a corporation, established for the sole purpose of 19.14constructing, acquiring, owning in whole or in part, financing, or operating a wind energy 19.15conversion system for the benefit of the district or districts in accordance with this section.19.16EFFECTIVE DATE.This section is effective the day following final enactment. 19.17    Sec. 14. Minnesota Statutes 2007 Supplement, section 123B.143, subdivision 1, 19.18is amended to read:19.19    Subdivision 1. Contract; duties. All districts maintaining a classified secondary 19.20school must employ a superintendent who shall be an ex officio nonvoting member of the 19.21school board. The authority for selection and employment of a superintendent must be 19.22vested in the board in all cases. An individual employed by a board as a superintendent 19.23shall have an initial employment contract for a period of time no longer than three years 19.24from the date of employment. Any subsequent employment contract must not exceed a 19.25period of three years. A board, at its discretion, may or may not renew an employment 19.26contract. A board must not, by action or inaction, extend the duration of an existing 19.27employment contract. Beginning 365 days prior to the expiration date of an existing 19.28employment contract, a board may negotiate and enter into a subsequent employment 19.29contract to take effect upon the expiration of the existing contract. A subsequent contract 19.30must be contingent upon the employee completing the terms of an existing contract. If a 19.31contract between a board and a superintendent is terminated prior to the date specified in 19.32the contract, the board may not enter into another superintendent contract with that same 19.33individual that has a term that extends beyond the date specified in the terminated contract. 19.34A board may terminate a superintendent during the term of an employment contract for any 20.1of the grounds specified in section 
         122A.40, subdivision 9 or 13. A superintendent shall 20.2not rely upon an employment contract with a board to assert any other continuing contract 20.3rights in the position of superintendent under section 
         122A.40. Notwithstanding the 20.4provisions of sections 
         122A.40, subdivision 10 or 11, 
         123A.32, 
         123A.75, or any other law 20.5to the contrary, no individual shall have a right to employment as a superintendent based 20.6on order of employment in any district. If two or more districts enter into an agreement for 20.7the purchase or sharing of the services of a superintendent, the contracting districts have 20.8the absolute right to select one of the individuals employed to serve as superintendent 20.9in one of the contracting districts and no individual has a right to employment as the 20.10superintendent to provide all or part of the services based on order of employment in a 20.11contracting district. The superintendent of a district shall perform the following: 20.12    (1) visit and supervise the schools in the district, report and make recommendations 20.13about their condition when advisable or on request by the board;20.14    (2) recommend to the board employment and dismissal of teachers;20.15    (3) superintend school grading practices and examinations for promotions;20.16    (4) make reports required by the commissioner; and20.17    (5) by January 10, submit an annual report to the commissioner in a manner 20.18prescribed by the commissioner, in consultation with school districts, identifying the 20.19expenditures that the district requires to ensure an 80 percent student passage rate on 20.20the MCA-IIs taken in the eighth grade, identifying the highest student passage rate the 20.21district expects it will be able to attain on the MCA-IIs by grade 12, and the amount of 20.22expenditures that the district requires to attain the targeted student passage rate; and20.23    (6) perform other duties prescribed by the board.20.24EFFECTIVE DATE.This section is effective the day following final enactment.20.25    Sec. 15. Minnesota Statutes 2006, section 123B.59, subdivision 1, is amended to read:20.26    Subdivision 1. To qualify. (a) An independent or special school district qualifies to 20.27participate in the alternative facilities bonding and levy program if the district has:20.28    (1) more than 66 students per grade;20.29    (2) over 1,850,000 square feet of space and the average age of building space is 15 20.30years or older or over 1,500,000 square feet and the average age of building space is 20.3135 years or older;20.32    (3) insufficient funds from projected health and safety revenue and capital facilities 20.33revenue to meet the requirements for deferred maintenance, to make accessibility 20.34improvements, or to make fire, safety, or health repairs; and20.35    (4) a ten-year facility plan approved by the commissioner according to subdivision 2.21.1    (b) An independent or special school district not eligible to participate in the 21.2alternative facilities bonding and levy program under paragraph (a) qualifies for limited 21.3participation in the program if the district has:21.4    (1) one or more health and safety projects with an estimated cost of $500,000 or 21.5more per site that would qualify for health and safety revenue except for the project size 21.6limitation in section 
         123B.57, subdivision 1, paragraph (b); and 21.7    (2) insufficient funds from capital facilities revenue to fund those projects.21.8    (c) Notwithstanding the square footage limitation in paragraph (a), clause (2), 21.9a school district that qualified for eligibility under paragraph (a) as of July 1, 2007, 21.10remains eligible for funding under this section as long as the district continues to meet 21.11the requirements of paragraph (a), clauses (1), (3), and (4).21.12EFFECTIVE DATE.This section is effective the day following final enactment.21.13    Sec. 16. Minnesota Statutes 2006, section 123B.62, is amended to read:21.14123B.62 BONDS FOR CERTAIN CAPITAL FACILITIES.21.15    (a) In addition to other bonding authority, with approval of the commissioner, a 21.16district may issue general obligation bonds for certain capital projects under this section. 21.17The bonds must be used only to make capital improvements including:21.18    (1) under section 
         126C.10, subdivision 14, total operating capital revenue uses 21.19specified in clauses (4), (6), (7), (8), (9), and (10); 21.20    (2) the cost of energy modifications;21.21    (3) improving disability accessibility to school buildings; and21.22    (4) bringing school buildings into compliance with life and safety codes and fire 21.23codes.21.24    (b) Before a district issues bonds under this subdivision, it must publish notice 21.25of the intended projects, the amount of the bond issue, and the total amount of district 21.26indebtedness.21.27    (c) A bond issue tentatively authorized by the board under this subdivision becomes 21.28finally authorized unless a petition signed by more than 15 percent of the registered voters 21.29of the district is filed with the school board within 30 days of the board's adoption of a 21.30resolution stating the board's intention to issue bonds. The percentage is to be determined 21.31with reference to the number of registered voters in the district on the last day before the 21.32petition is filed with the board. The petition must call for a referendum on the question of 21.33whether to issue the bonds for the projects under this section. The approval of 50 percent 22.1plus one of those voting on the question is required to pass a referendum authorized 22.2by this section.22.3    (d) The bonds must be paid off within ten15 years of issuance. The bonds must be 22.4issued in compliance with chapter 475, except as otherwise provided in this section. A tax 22.5levy must be made for the payment of principal and interest on the bonds in accordance 22.6with section 
         475.61. The sum of the tax levies under this section and section 
         123B.61 for 22.7each year must not exceed the limit specified in section 
         123B.61. The levy for each year 22.8must be reduced as provided in section 
         123B.61. A district using an excess amount in the 22.9debt redemption fund to retire the bonds shall report the amount used for this purpose to 22.10the commissioner by July 15 of the following fiscal year. A district having an outstanding 22.11capital loan under section 
         126C.69 or an outstanding debt service loan under section 22.12126C.68
          must not use an excess amount in the debt redemption fund to retire the bonds. 22.13    (e) Notwithstanding paragraph (d), bonds issued by a district within the first 22.14five years following voter approval of a combination according to section 
         123A.37, 22.15subdivision 2
         , must be paid off within 20 years of issuance. All the other provisions and 22.16limitation of paragraph (d) apply. 22.17EFFECTIVE DATE.This section is effective the day following final enactment.22.18    Sec. 17. Minnesota Statutes 2006, section 124D.04, subdivision 3, is amended to read:22.19    Subd. 3. Pupils in adjoining states.Except as provided under an agreement with 22.20an adjoining state under section 124D.041, a non-Minnesota pupil who resides in an 22.21adjoining state in a district that borders Minnesota may enroll in a Minnesota district if 22.22either the board of the district in which the pupil resides or state in which the pupil resides 22.23pays tuition to the district in which the pupil is enrolled.22.24    Sec. 18. Minnesota Statutes 2006, section 124D.04, subdivision 6, is amended to read:22.25    Subd. 6. Tuition payments.(a) In each odd-numbered year, before March 1, the 22.26commissioner must agree to rates of tuition for Minnesota elementary and secondary 22.27pupils attending in other states for the next two fiscal years when the other state agrees to 22.28negotiate tuition rates. The commissioner must negotiate equal, reciprocal rates with the 22.29designated authority in each state for pupils who reside in an adjoining state and enroll in 22.30a Minnesota district. The rates must be at least equal to the tuition specified in section 22.31124D.05, subdivision 1
         . If the other state does not agree to negotiate a general tuition rate, 22.32a Minnesota school district may negotiate a tuition rate with the school district in the other 22.33state that sends a pupil to or receives a pupil from the Minnesota school district. The 22.34tuition rate for a pupil with a disability must be equal to the actual cost of instruction and 23.1services provided. The resident district of a Minnesota pupil attending in another state 23.2under this section must pay the amount of tuition agreed upon in this section to the district 23.3of attendance, prorated on the basis of the proportion of the school year attended. 23.4    (b) Notwithstanding paragraph (a) and subdivision 9, if an agreement is reached 23.5between the state of Minnesota and an adjoining state pursuant to section 124D.041, 23.6the provisions of section 124D.041 and the agreement shall apply to all enrollment 23.7transfers between Minnesota and the adjoining state, and provisions of paragraph (a) 23.8and subdivision 9 shall not apply.23.9    Sec. 19. Minnesota Statutes 2006, section 124D.04, subdivision 8, is amended to read:23.10    Subd. 8. Effective if reciprocal. This section is effective with respect to South 23.11Dakota upon enactment of provisions by South Dakota that the commissioner determines 23.12are essentially similar to the provisions for Minnesota pupils in this section. This section 23.13is effective with respect to any other bordering state upon enactment of provisions by the 23.14bordering state that the commissioner determines are essentially similar to the provisions 23.15for Minnesota pupils in this section.23.16    Sec. 20. Minnesota Statutes 2006, section 124D.04, subdivision 9, is amended to read:23.17    Subd. 9. Appeal to the commissioner. If a Minnesota school district cannot agree 23.18with an adjoining state on a tuition rate for a Minnesota student attending school in that 23.19state and that state has met the requirements in subdivision 8, then the student's parent or 23.20guardian may request that the commissioner agree on set a tuition rate for the student. The 23.21Minnesota district must pay the amount of tuition the commissioner agrees upon sets.23.22    Sec. 21. [124D.041] RECIPROCITY WITH ADJOINING STATES.23.23    Subdivision 1.Agreements.(a) The commissioner may enter into an agreement 23.24with the designated authority from an adjoining state to establish an enrollment options 23.25program between Minnesota and the adjoining state. Any agreement entered into pursuant 23.26to this section must specify the following:23.27    (1) for students who are not residents of Minnesota, the enrollment options program 23.28applies only to a student whose resident school district borders Minnesota;23.29    (2) the commissioner must negotiate equal, reciprocal rates with the designated 23.30authority from the adjoining state;23.31    (3) if the adjoining state sends more students to Minnesota than Minnesota sends to 23.32the adjoining state, the adjoining state must pay the state of Minnesota the rate agreed 23.33upon under clause (2) for the excess number of students sent to Minnesota;24.1    (4) if Minnesota sends more students to the adjoining state than the adjoining state 24.2sends to Minnesota, the state of Minnesota will pay the adjoining state the rate agreed 24.3upon under clause (2) for the excess number of students sent to the adjoining state;24.4    (5) the application procedures for the enrollment options program between 24.5Minnesota and the adjoining state;24.6    (6) the reasons for which an application for the enrollment options program between 24.7Minnesota and the adjoining may be denied; and24.8    (7) that a Minnesota school district is not responsible for transportation for any 24.9resident student attending school in an adjoining state under the provisions of this section. 24.10A Minnesota school district may, at its discretion, provide transportation services for 24.11such a student.24.12    (b) Any agreement entered into pursuant to this section may specify additional terms 24.13relating to any student in need of special education and related services pursuant to chapter 24.14125A.  Any additional terms must apply equally to both states.24.15    Subd. 2.Pupil accounting.(a) Any student from an adjoining state enrolled in 24.16Minnesota pursuant to this section is included in the receiving school district's average 24.17daily membership and pupil units according to section 126C.05 as if the student were 24.18a resident of another Minnesota school district attending the receiving school district 24.19under section 124D.03.24.20    (b) Any Minnesota resident student enrolled in an adjoining state pursuant to this 24.21section is included in the resident school district's average daily membership and pupil 24.22units according to section 126C.05 as if the student were a resident of the district attending 24.23another Minnesota school district under section 124D.03.24.24    Subd. 3.Procedures.(a) The Department of Education must establish procedures 24.25relating to the application process, the collection or payment of funds under the provisions 24.26of any agreement established pursuant to this section, and the collection of data necessary 24.27to implement any agreement established pursuant to this section.24.28    (b) Notwithstanding sections 124D.04 and 124D.05, if an agreement is established 24.29between Minnesota and an adjoining state pursuant to this section, the provisions of this 24.30section and the agreement shall apply to all enrollment transfers between Minnesota and 24.31the adjoining state, and provisions of sections 124D.04 and 124D.05 to the contrary, 24.32including provisions relating to tuition payments, shall not apply.24.33    (c) Notwithstanding paragraph (a), any payments to adjoining states under this 24.34section shall be made according to section 127A.45, subdivision 16.24.35    (d) Notwithstanding paragraph (b), sections 124D.04, subdivision 6, paragraph (b), 24.36and 124D.05, subdivision 2a, the provisions of this section and the agreement shall not 25.1apply to enrollment transfers between Minnesota and a school district in an adjoining state 25.2enrolling fewer than 150 pupils that is exempted from participation in the program under 25.3the laws of the adjoining state.25.4    Sec. 22. Minnesota Statutes 2006, section 124D.05, is amended by adding a 25.5subdivision to read:25.6    Subd. 2a.Exception.Notwithstanding subdivisions 1 and 2, if an agreement 25.7is reached between the state of Minnesota and an adjoining state pursuant to section 25.8124D.041, the provisions of section 124D.041 and the agreement shall apply to all 25.9enrollment transfers between Minnesota and the adjoining state, and provisions of 25.10subdivisions 1 and 2 to the contrary, including provisions relating to tuition payments, 25.11shall not apply.25.12    Sec. 23. Minnesota Statutes 2006, section 124D.10, subdivision 20, is amended to read:25.13    Subd. 20. Leave to teach in a charter school. If a teacher employed by a district 25.14makes a written request for an extended leave of absence to teach at a charter school, 25.15the district must grant the leave. The district must grant a leave not to exceed a total of 25.16five years. Any request to extend the leave shall be granted only at the discretion of the 25.17school board. The district may require that the request for a leave or extension of leave 25.18be made up to 90 days before the teacher would otherwise have to report for duty before 25.19February 1 in the school year preceding the school year in which the teacher wishes to 25.20return, or before February 1 of the calendar year in which the teacher's leave is scheduled 25.21to terminate. Except as otherwise provided in this subdivision and except for section 25.22122A.46, subdivision 7
         , the leave is governed by section 
         122A.46, including, but not 25.23limited to, reinstatement, notice of intention to return, seniority, salary, and insurance. 25.24    During a leave, the teacher may continue to aggregate benefits and credits in the 25.25Teachers' Retirement Association account by paying both the employer and employee 25.26contributions based upon the annual salary of the teacher for the last full pay period before 25.27the leave began. The retirement association may impose reasonable requirements to 25.28efficiently administer this subdivision.25.29EFFECTIVE DATE.This section is effective for the 2008-2009 school year and 25.30later.25.31    Sec. 24. Minnesota Statutes 2007 Supplement, section 124D.531, subdivision 1, 25.32is amended to read:26.1    Subdivision 1. State total adult basic education aid. (a) The state total adult basic 26.2education aid for fiscal year 2005 is $36,509,000. The state total adult basic education 26.3aid for fiscal year 2006  equals $36,587,000 plus any amount that is not paid for during 26.4the previous fiscal year, as a result of adjustments under subdivision 4, paragraph (a), or 26.5section 
         124D.52, subdivision 3. The state total adult basic education aid for fiscal year 26.62007 equals $37,673,000 plus any amount that is not paid for during the previous fiscal 26.7year, as a result of adjustments under subdivision 4, paragraph (a), or section 
         124D.52, 26.8subdivision 3
         . The state total adult basic education aid for fiscal year 2008 equals 26.9$40,650,000, plus any amount that is not paid during the previous fiscal year as a result of 26.10adjustments under subdivision 4, paragraph (a), or section 
         124D.52, subdivision 3. The 26.11state total adult basic education aid for later fiscal years equals:26.12    (1) the state total adult basic education aid for the preceding fiscal year plus any 26.13amount that is not paid for during the previous fiscal year, as a result of adjustments under 26.14subdivision 4, paragraph (a), or section 
         124D.52, subdivision 3; times26.15    (2) the lesser of:26.16    (i) 
         1.03; or26.17    (ii) the greater of 1.00 or the ratio of the state total contact hours in the first prior 26.18program year to the state total contact hours in the second prior program year the average 26.19growth in state total contact hours over the prior ten program years.26.20    Beginning in fiscal year 2002, two percent of the state total adult basic education 26.21aid must be set aside for adult basic education supplemental service grants under section 26.22124D.522
         .26.23    (b) The state total adult basic education aid, excluding basic population aid, equals 26.24the difference between the amount computed in paragraph (a), and the state total basic 26.25population aid under subdivision 2.26.26    Sec. 25. Minnesota Statutes 2006, section 124D.55, is amended to read:26.27124D.55 GENERAL EDUCATION DEVELOPMENT (GED) TEST FEES.26.28    The commissioner shall pay 60 percent of the fee that is charged to an eligible 26.29individual for the full battery of a general education development (GED) test, but not 26.30more than $20$40 for an eligible individual.26.31    Sec. 26. Minnesota Statutes 2006, section 125A.65, is amended by adding a 26.32subdivision to read:26.33    Subd. 11.Third-party reimbursement.The Minnesota State Academies must seek 26.34reimbursement under section 125A.21 from third parties for the cost of services provided 27.1by the Minnesota State Academies whenever the services provided are otherwise covered 27.2by a child's public or private health plan.27.3EFFECTIVE DATE.This section is effective the day following final enactment 27.4for revenue in fiscal years 2008 and later.27.5    Sec. 27. Minnesota Statutes 2006, section 125A.76, is amended by adding a 27.6subdivision to read:27.7    Subd. 4a.Adjustments for tuition reciprocity with adjoining states.(a) If an 27.8agreement is reached between the state of Minnesota and an adjoining state pursuant to 27.9section 124D.041 that requires a special education tuition payment from the state of 27.10Minnesota to the adjoining state, the tuition payment shall be made from the special 27.11education aid appropriation for that year, and the state total special education aid under 27.12subdivision 4 shall be reduced by the amount of the payment.27.13    (b) If an agreement is reached between the state of Minnesota and an adjoining state 27.14pursuant to section 124D.041 that requires a special education tuition payment from 27.15an adjoining state to the state of Minnesota, the special education aid appropriation for 27.16that year and the state total special education aid under subdivision 4  shall be increased 27.17by the amount of the payment.27.18    (c) If an agreement is reached between the state of Minnesota and an adjoining state 27.19pursuant to section 124D.041 that requires special education tuition payments to be made 27.20between the two states and not between districts in the two states, the special education aid 27.21for a Minnesota school district serving a student with a disability from the adjoining state 27.22shall be calculated according to section 127A.47, subdivision 7, except that no reduction 27.23shall be made in the special education aid paid to the resident district.27.24    Sec. 28. Minnesota Statutes 2006, section 126C.10, subdivision 31, is amended to read:27.25    Subd. 31. Transition revenue. (a) A district's transition allowance equals the 27.26greater of zero or the product of the ratio of the number of adjusted marginal cost pupil 27.27units the district would have counted for fiscal year 2004 under Minnesota Statutes 2002 27.28to the district's adjusted marginal cost pupil units for fiscal year 2004, times the difference 27.29between: (1) the lesser of the district's general education revenue per adjusted marginal 27.30cost pupil unit for fiscal year 2003 or the amount of general education revenue the district 27.31would have received per adjusted marginal cost pupil unit for fiscal year 2004 according 27.32to Minnesota Statutes 2002, and (2) the district's general education revenue for fiscal year 27.332004 excluding transition revenue divided by the number of adjusted marginal cost pupil 27.34units the district would have counted for fiscal year 2004 under Minnesota Statutes 2002.28.1    (b) A district's transition revenue for fiscal year years 2006 and later through 200928.2equals the sum of the product of the district's transition allowance times the district's 28.3adjusted marginal cost pupil units plus the district's transition for prekindergarten revenue 28.4under subdivision 31a.28.5    (c) A district's transition revenue for fiscal year 2010 and later equals the sum of 28.6the product of the district's transition allowance times the district's adjusted marginal cost 28.7pupil units plus the district's transition for prekindergarten revenue under subdivision 31a 28.8plus the district's transition for tuition reciprocity revenue under subdivision 31c.28.9    Sec. 29. Minnesota Statutes 2006, section 126C.10, is amended by adding a 28.10subdivision to read:28.11    Subd. 31c.Transition for tuition reciprocity revenue.For the first year that a 28.12tuition reciprocity agreement with an adjoining state is in effect under section 124D.041 28.13and later, a school district's transition for tuition reciprocity revenue equals the greater of 28.14zero or the difference between the sum of the general education revenue and net tuition 28.15revenue the district would have received for pupils enrolled under section 124D.041 for 28.16the first year the agreement is in effect if the agreement had not been in effect, and the 28.17sum of the district's general education revenue and net tuition revenue for the first year 28.18the agreement is in effect.28.19    Sec. 30. Minnesota Statutes 2006, section 126C.17, subdivision 9, is amended to read:28.20    Subd. 9. Referendum revenue. (a) The revenue authorized by section 
         126C.10, 28.21subdivision 1
         , may be increased in the amount approved by the voters of the district at a 28.22referendum called for the purpose. The referendum may be called by the board or shall be 28.23called by the board upon written petition of qualified voters of the district. The referendum 28.24must be conducted one or two calendar years before the increased levy authority, if 28.25approved, first becomes payable. Only one election to approve an increase may be held 28.26in a calendar year. Unless the referendum is conducted by mail under paragraph (g), the 28.27referendum must be held on the first Tuesday after the first Monday in November. The 28.28ballot must state the maximum amount of the increased revenue per resident marginal cost 28.29pupil unit. The ballot may state a schedule, determined by the board, of increased revenue 28.30per resident marginal cost pupil unit that differs from year to year over the number of 28.31years for which the increased revenue is authorized or may state that the amount shall 28.32increase annually by the rate of inflation. For this purpose, the rate of inflation shall be 28.33the annual inflationary increase calculated under subdivision 2, paragraph (b). The ballot 28.34may state that existing referendum levy authority is expiring. In this case, the ballot may 29.1also compare the proposed levy authority to the existing expiring levy authority, and 29.2express the proposed increase as the amount, if any, over the expiring referendum levy 29.3authority. The ballot must designate the specific number of years, not to exceed ten, for 29.4which the referendum authorization applies. The ballot, including a ballot on the question 29.5to revoke or reduce the increased revenue amount under paragraph (c), must abbreviate 29.6the term "per resident marginal cost pupil unit" as "per pupil." The notice required under 29.7section 
         275.60 may be modified to read, in cases of renewing existing levies at the same 29.8amount per pupil as in the previous year:29.9"BY VOTING "YES" ON THIS BALLOT QUESTION, YOU MAY BE VOTING 29.10FOR A PROPERTY TAX INCREASE ARE RENEWING AN EXISTING 29.11PROPERTY TAX REFERENDUM. YOU ARE NOT CHANGING YOUR 29.12OPERATING REFERENDUM AMOUNT PER PUPIL FROM ITS LEVEL IN 29.13THE PREVIOUS YEAR."29.14    The ballot may contain a textual portion with the information required in this 29.15subdivision and a question stating substantially the following:29.16    "Shall the increase in the revenue proposed by (petition to) the board of ........., 29.17School District No. .., be approved?"29.18    If approved, an amount equal to the approved revenue per resident marginal cost 29.19pupil unit times the resident marginal cost pupil units for the school year beginning in 29.20the year after the levy is certified shall be authorized for certification for the number of 29.21years approved, if applicable, or until revoked or reduced by the voters of the district at a 29.22subsequent referendum.29.23    (b) The board must prepare and deliver by first class mail at least 15 days but no more 29.24than 30 days before the day of the referendum to each taxpayer a notice of the referendum 29.25and the proposed revenue increase. The board need not mail more than one notice to any 29.26taxpayer. For the purpose of giving mailed notice under this subdivision, owners must be 29.27those shown to be owners on the records of the county auditor or, in any county where 29.28tax statements are mailed by the county treasurer, on the records of the county treasurer. 29.29Every property owner whose name does not appear on the records of the county auditor 29.30or the county treasurer is deemed to have waived this mailed notice unless the owner 29.31has requested in writing that the county auditor or county treasurer, as the case may be, 29.32include the name on the records for this purpose. The notice must project the anticipated 29.33amount of tax increase in annual dollars for typical residential homesteads, agricultural 29.34homesteads, apartments, and commercial-industrial property within the school district.29.35    The notice for a referendum may state that an existing referendum levy is expiring 29.36and project the anticipated amount of increase over the existing referendum levy in 30.1the first year, if any, in annual dollars for typical residential homesteads, agricultural 30.2homesteads, apartments, and commercial-industrial property within the district.30.3    The notice must include the following statement: "Passage of this referendum will 30.4result in an increase in your property taxes." However, in cases of renewing existing 30.5levies, the notice may include the following statement: "Passage of this referendum may30.6result in an increase in your property taxes."renews an existing operating referendum at 30.7the same amount per pupil as in the previous year."30.8    (c) A referendum on the question of revoking or reducing the increased revenue 30.9amount authorized pursuant to paragraph (a) may be called by the board and shall be called 30.10by the board upon the written petition of qualified voters of the district. A referendum to 30.11revoke or reduce the revenue amount must state the amount per resident marginal cost 30.12pupil unit by which the authority is to be reduced. Revenue authority approved by the 30.13voters of the district pursuant to paragraph (a) must be available to the school district at 30.14least once before it is subject to a referendum on its revocation or reduction for subsequent 30.15years. Only one revocation or reduction referendum may be held to revoke or reduce 30.16referendum revenue for any specific year and for years thereafter.30.17    (d) A petition authorized by paragraph (a) or (c) is effective if signed by a number of 30.18qualified voters in excess of 15 percent of the registered voters of the district on the day 30.19the petition is filed with the board. A referendum invoked by petition must be held on the 30.20date specified in paragraph (a).30.21    (e) The approval of 50 percent plus one of those voting on the question is required to 30.22pass a referendum authorized by this subdivision.30.23    (f) At least 15 days before the day of the referendum, the district must submit a 30.24copy of the notice required under paragraph (b) to the commissioner and to the county 30.25auditor of each county in which the district is located. Within 15 days after the results 30.26of the referendum have been certified by the board, or in the case of a recount, the 30.27certification of the results of the recount by the canvassing board, the district must notify 30.28the commissioner of the results of the referendum.30.29EFFECTIVE DATE.This section is effective for elections conducted on or after 30.30July 1, 2008.30.31    Sec. 31. Minnesota Statutes 2006, section 126C.21, subdivision 1, is amended to read:30.32    Subdivision 1. Permanent school fund.The An amount of money equal to $36 30.33times the district's pupils in average daily membership received by a district as income 30.34from the permanent school fund for any year must be deducted from the general education 30.35aid earned by the district for the same year or from aid earned from other state sources.31.1EFFECTIVE DATE.This section is effective for revenue for fiscal year 2010.31.2    Sec. 32. Minnesota Statutes 2007 Supplement, section 126C.21, subdivision 3, is 31.3amended to read:31.4    Subd. 3. County apportionment deduction. Each year the amount of money 31.5apportioned to a district for that year pursuant to sections section 127A.34, subdivision 2, 31.6and 272.029, subdivision 6, must be deducted from the general education aid earned by 31.7that district for the same year or from aid earned from other state sources. 31.8EFFECTIVE DATE.This section is effective for revenue for fiscal year 2009.31.9    Sec. 33. Minnesota Statutes 2007 Supplement, section 126C.44, is amended to read:31.10126C.44 SAFE SCHOOLS LEVY.31.11    (a) Each district may make a levy on all taxable property located within the district 31.12for the purposes specified in this section. The maximum amount which may be levied 31.13for all costs under this section shall be equal to $30 multiplied by the district's adjusted 31.14marginal cost pupil units for the school year. The proceeds of the levy must be reserved and 31.15used for directly funding the following purposes or for reimbursing the cities and counties 31.16who contract with the district for the following purposes: (1) to pay the costs incurred for 31.17the salaries, benefits, and transportation costs of peace officers and sheriffs for liaison in 31.18services in the district's schools; (2) to pay the costs for a drug abuse prevention program 31.19as defined in section 
         609.101, subdivision 3, paragraph (e), in the elementary schools; 31.20(3) to pay the costs for a gang resistance education training curriculum in the district's 31.21schools; (4) to pay the costs for security in the district's schools and on school property; (5) 31.22to pay the costs for other crime prevention, drug abuse, student and staff safety, voluntary 31.23opt-in suicide prevention tools, and violence prevention measures taken by the school 31.24district; or (6) to pay costs for licensed school counselors, licensed school nurses, licensed 31.25school social workers, licensed school psychologists, and licensed alcohol and chemical 31.26dependency counselors to help provide early responses to problems. For expenditures 31.27under clause (1), the district must initially attempt to contract for services to be provided 31.28by peace officers or sheriffs with the police department of each city or the sheriff's 31.29department of the county within the district containing the school receiving the services. If 31.30a local police department or a county sheriff's department does not wish to provide the 31.31necessary services, the district may contract for these services with any other police or 31.32sheriff's department located entirely or partially within the school district's boundaries. 32.1    (b) A school district that is a member of an intermediate school district may 32.2include in its authority under this section the costs associated with safe schools activities 32.3authorized under paragraph (a) for intermediate school district programs. This authority 32.4must not exceed $10 times the adjusted marginal cost pupil units of the member districts. 32.5This authority is in addition to any other authority authorized under this section. Revenue 32.6raised under this paragraph must be transferred to the intermediate school district.32.7    (c) If A school district spendsmust set aside at least $3 per adjusted marginal cost 32.8pupil unit of the safe schools levy proceeds for the purposes authorized under paragraph 32.9(a), clause (6),. The district must annually certify that its total spending on services 32.10provided by the employees listed in paragraph (a), clause (6), is not less than the sum of 32.11its expenditures for these purposes, excluding amounts spent under this section, in the 32.12previous year plus the amount spent under this section.32.13EFFECTIVE DATE.This section is effective for revenue for fiscal year 2010.32.14    Sec. 34. Minnesota Statutes 2006, section 126C.51, is amended to read:32.15126C.51 APPLICATION OF LIMITING TAX LEGISLATION.32.16    Notwithstanding the provisions of section 
         471.69 or 
         471.75, or of any other 32.17provision of law which by per capita limitation, local tax rate limitation, or otherwise, 32.18limits the power of a district to incur any debt or to issue any warrant or order, a school 32.19district or intermediate school district has the powers in sections 
         126C.50 to 
         126C.5632.20specifically conferred upon it and all powers incident and necessary to carrying out the 32.21purposes of sections 
         126C.50 to 
         126C.56. 32.22EFFECTIVE DATE.This section is effective the day following final enactment.32.23    Sec. 35. Minnesota Statutes 2006, section 126C.52, subdivision 2, is amended to read:32.24    Subd. 2. Limitations. The board of any school district may also borrow money 32.25in the manner and subject to the limitations set forth in sections 
         126C.50 to 
         126C.56 in 32.26anticipation of receipt of state aids for schools as defined in Minnesota Statutes and of 32.27federal school aids to be distributed by or through the department. The aggregate of such 32.28borrowings under this subdivision shall never exceed 75 percent of such aids which are 32.29receivable by said school district in the schoolfiscal year (from July 1 to June 30) in which 32.30the money is borrowed, as estimated and certified by the commissioner. 32.31EFFECTIVE DATE.This section is effective the day following final enactment.33.1    Sec. 36. Minnesota Statutes 2006, section 126C.52, is amended by adding a 33.2subdivision to read:33.3    Subd. 3.Intermediate school districts.(a) The board of an intermediate school 33.4district may borrow money in the manner and subject to the limitations set forth in 33.5sections 126C.50 to 126C.56 in anticipation of the receipt of:33.6    (1) state aids for schools as defined in Minnesota Statutes;33.7    (2) federal school aids to be distributed by or through the department; and33.8    (3) membership fees and tuition payments from its member school districts.33.9    The aggregate of such borrowings under this subdivision shall never exceed 75 33.10percent of such aids, fees, and tuition payments which are receivable by the intermediate 33.11school district in the fiscal year in which the money is borrowed, as estimated and certified 33.12by the commissioner.33.13    (b) The board of an intermediate school district may, upon receipt of a written 33.14resolution by each of its member school districts, pledge the member district's full faith 33.15and credit and unlimited taxing powers to repay its pro rata share of any certificates issued 33.16or the amount paid by the state under section 126C.55, subdivision 2, plus interest, if the 33.17revenues specified in paragraph (a) and any other revenues of the intermediate school 33.18district are insufficient to do so.33.19EFFECTIVE DATE.This section is effective the day following final enactment.33.20    Sec. 37. Minnesota Statutes 2006, section 126C.53, is amended to read:33.21126C.53 ENABLING RESOLUTION; FORM OF CERTIFICATES OF 33.22INDEBTEDNESS.33.23    The board of a school district or intermediate school district may authorize and 33.24effect such borrowing, and may issue such certificates of indebtedness upon passage of 33.25a resolution specifying the amount and purposes for which it deems such borrowing is 33.26necessary. The resolution must be adopted by a vote of at least two-thirds of its members. 33.27The board must fix the amount, date, maturity, form, denomination, and other details of 33.28the certificates of indebtedness, not inconsistent with this chapter. The board must fix the 33.29date and place for receipt of bids for the purchase of the certificates when bids are required 33.30and direct the clerk to give notice of the date and place for bidding.33.31EFFECTIVE DATE.This section is effective the day following final enactment.34.1    Sec. 38. Minnesota Statutes 2006, section 126C.55, is amended to read:34.2126C.55 STATE PAYMENT OF DEBT OBLIGATION UPON POTENTIAL 34.3DEFAULT; REPAYMENT; STATE OBLIGATION NOT DEBT.34.4    Subdivision 1. Definitions. For the purposes of this section, the term "debt 34.5obligation" means:34.6    (1) a tax or aid anticipation certificate of indebtedness issued under section 126C.52;34.7    (2) a certificate of participation issued under section 
         126C.40, subdivision 6; or 34.8    (3) a general obligation bond.34.9    Subd. 2. Notifications; payment; appropriation. (a) If a school district or 34.10intermediate school district believes that it may be unable to make a principal or interest 34.11payment on any outstanding debt obligation on the date that payment is due, it must 34.12notify the commissioner as soon as possible, but not less than 15 working days before the 34.13date that principal or interest payment is due. The notice must include the name of the34.14school district or intermediate school district, an identification of the debt obligation issue 34.15in question, the date the payment is due, the amount of principal and interest due on the 34.16payment date, the amount of principal or interest that the school district or intermediate 34.17school district will be unable to repay on that date, the paying agent for the debt obligation, 34.18the wire transfer instructions to transfer funds to that paying agent, and an indication as to 34.19whether a payment is being requested by the school district or intermediate school district34.20under this section. If a paying agent becomes aware of a potential default, it shall inform 34.21the commissioner of that fact. After receipt of a notice which requests a payment under 34.22this section, after consultation with the school district or intermediate school district and 34.23the paying agent, and after verification of the accuracy of the information provided, the 34.24commissioner shall notify the commissioner of finance of the potential default. The notice 34.25must include a final figure as to the amount due that the school district or intermediate 34.26school district will be unable to repay on the date due.34.27    (b) Except as provided in subdivision 9, upon receipt of this notice from the 34.28commissioner, the commissioner of finance shall issue a warrant and authorize the 34.29commissioner of education to pay to the paying agent for the debt obligation the specified 34.30amount on or before the date due. The amounts needed for the purposes of this subdivision 34.31are annually appropriated to the department from the state general fund.34.32    (c) The Departments of Education and Finance must jointly develop detailed 34.33procedures for school districts and intermediate school districts to notify the state that 34.34they have obligated themselves to be bound by the provisions of this section, procedures 34.35for school districts or intermediate school districts and paying agents to notify the state 34.36of potential defaults and to request state payment under this section, and procedures 35.1for the state to expedite payments to prevent defaults. The procedures are not subject 35.2to chapter 14.35.3    Subd. 3. School district bound; interest rate on state paid amount. If, at the 35.4request of a school district or intermediate school district, the state has paid part or all of 35.5the principal or interest due on a district's debt obligation on a specific date, the school35.6district or the intermediate school district is bound by all provisions of this section and the 35.7amount paid shall bear taxable interest from the date paid until the date of repayment at 35.8the invested cash rate as it is certified by the commissioner of finance. Interest shall only 35.9accrue on the amounts paid and outstanding less the reduction in aid under subdivision 4 35.10and other payments received from the school district or intermediate school district.35.11    Subd. 4. Pledge of district's full faith and credit. If, at the request of a school 35.12district or intermediate school district, the state has paid part or all of the principal or 35.13interest due on a district's debt obligation on a specific date, the pledge of the full faith 35.14and credit and unlimited taxing powers of the school district or the intermediate school 35.15district to repay the principal and interest due on those debt obligations shall also, without 35.16an election or the requirement of a further authorization, become a pledge of the full faith 35.17and credit and unlimited taxing powers of the school district or the intermediate school 35.18district to repay to the state the amount paid, with interest. Amounts paid by the state must 35.19be repaid in the order in which the state payments were made.35.20    Subd. 4a.Aid reduction for repayment.(a) Except as provided in this subdivision, 35.21the state must reduce the state aid payable to the school district or intermediate school 35.22district under this chapter and chapters 122A, 123A, 123B, 124D, 125A, 126C, and 273 35.23by the amount paid by the state under this section on behalf of the district, plus the interest 35.24due on it, and the amount reduced must revert from the appropriate account to the state 35.25general fund. Payments from the school district endowment fund or any federal aid 35.26payments shall not be reduced.35.27    (b) For an intermediate school district, the state aid payable to the intermediate 35.28school district must first be reduced, before any reduction is made to the state aids payable 35.29to the member districts. If the state aid payable to the intermediate school district is 35.30not sufficient to repay the state, state aid payable to member districts may be reduced 35.31proportionately based on the ratio of each member district's adjusted net tax capacity to 35.32the total adjusted net tax capacity of all member districts.35.33    (c) If, after review of the financial situation of the school district or intermediate 35.34school district, the commissioner advises the commissioner of finance that a total reduction 35.35of aids would cause an undue hardship on or an undue disruption of the educational 35.36program of the district, the commissioner, with the approval of the commissioner of 36.1finance, may establish a different schedule for reduction of aids to repay the state. The 36.2amount of aids to be reduced is decreased by any amounts repaid to the state by the district 36.3from other revenue sources.36.4    Subd. 6. Tax levy for repayment. (a) With the approval of the commissioner, a 36.5district may levy in the year the state makes a payment under this section an amount up to 36.6the amount necessary to provide funds for the repayment of the amount paid by the state 36.7plus interest through the date of estimated repayment by the district. The proceeds of this 36.8levy may be used only for this purpose unless they are in excess of the amount actually 36.9due, in which case the excess shall be used to repay other state payments made under this 36.10section or shall be deposited in the debt redemption fund of the school district. This levy 36.11shall be an increase in the levy limits of the district for purposes of section 
         275.065, 36.12subdivision 6
         . The amount of aids to be reduced to repay the state shall be decreased by 36.13the amount levied. This levy by the district is not eligible for debt service equalization 36.14under section 
         123B.53. 36.15    (b) If the state is not repaid in full for a payment made under this section by 36.16November 30 of the calendar year following the year in which the state makes the 36.17payment, the commissioner shall require the district to certify a property tax levy in an 36.18amount up to the amount necessary to provide funds for repayment of the amount paid by 36.19the state plus interest through the date of estimated repayment by the school district. To 36.20prevent undue hardship, the commissioner may allow the district to certify the levy over a 36.21five-year period. The proceeds of the levy may be used only for this purpose unless they 36.22are in excess of the amount actually due, in which case the excess shall be used to repay 36.23other state payments made under this section or shall be deposited in the debt redemption 36.24fund of the district. This levy shall be an increase in the levy limits of the school district 36.25for purposes of section 
         275.065, subdivision 6. If the commissioner orders the district 36.26to levy, the amount of aids reduced to repay the state shall be decreased by the amount 36.27levied. This levy by the district is not eligible for debt service equalization under section 36.28123B.53
          or any successor provision. A levy under this subdivision must be explained as a 36.29specific increase at the meeting required under section 
         275.065, subdivision 6. 36.30    (c) For an intermediate school district, a levy made by a member school district 36.31under paragraph (a) or (b) to repay its pro rata share must be spread by the commissioner 36.32as a tax rate based on the total adjusted net tax capacity of the member school districts. The 36.33proceeds of the levy must be remitted by the member school district to the intermediate 36.34school district and must be used by the intermediate school district only to repay the state 36.35amounts owed. Any amount in excess of the amount owed to the state must be repaid 37.1to the member school districts and the commissioner shall adjust each member school 37.2district's property tax levy in the next year.37.3    Subd. 7. Election as to mandatory application. A school district or intermediate 37.4school district may covenant and obligate itself, prior to the issuance of an issue of debt 37.5obligations, to notify the commissioner of a potential default and to use the provisions of 37.6this section to guarantee payment of the principal and interest on those debt obligations 37.7when due. If the school district or intermediate school district obligates itself to be bound 37.8by this section, it must covenant in the resolution that authorizes the issuance of the debt 37.9obligations to deposit with the paying agent three business days prior to the date on which 37.10a payment is due an amount sufficient to make that payment or to notify the commissioner 37.11under subdivision 1 that it will be unable to make all or a portion of that payment. A school37.12district or intermediate school district that has obligated itself must include a provision in 37.13its agreement with the paying agent for that issue that requires the paying agent to inform 37.14the commissioner if it becomes aware of a potential default in the payment of principal or 37.15interest on that issue or if, on the day two business days prior to the date a payment is due 37.16on that issue, there are insufficient funds to make the payment on deposit with the paying 37.17agent. Funds invested in a refunding escrow account established under section 
         475.67 that 37.18are to become available to the paying agent on a principal or interest payment date are 37.19deemed to be on deposit with the paying agent three business days before the payment 37.20date. If a school district or intermediate school district either covenants to be bound by 37.21this section or accepts state payments under this section to prevent a default of a particular 37.22issue of debt obligations, the provisions of this section shall be binding as to that issue 37.23as long as any debt obligation of that issue remain outstanding. If the provisions of this 37.24section are or become binding for more than one issue of debt obligations and a school37.25district or intermediate school district is unable to make payments on one or more of those 37.26issues, the district must continue to make payments on the remaining issues. 37.27    Subd. 8. Mandatory plan; technical assistance. If the state makes payments 37.28on behalf of a school district or intermediate school district under this section or the 37.29district defaults in the payment of principal or interest on an outstanding debt obligation, it 37.30must submit a plan to the commissioner for approval specifying the measures it intends 37.31to implement to resolve the issues which led to its inability to make the payment and 37.32to prevent further defaults. The department must provide technical assistance to the37.33school district or intermediate school district in preparing its plan. If the commissioner 37.34determines that a district's plan is not adequate, the commissioner shall notify the school37.35district or intermediate school district that the plan has been disapproved, the reasons for 37.36the disapproval, and that the state shall not make future payments under this section for 38.1debt obligations issued after the date specified in that notice until its plan is approved. 38.2The commissioner may also notify the school district or intermediate school district that 38.3until its plan is approved, other aids due the district will be withheld after a date specified 38.4in the notice.38.5    Subd. 9. State bond rating. If the commissioner of finance determines that the 38.6credit rating of the state would be adversely affected thereby, the commissioner of finance 38.7shall not issue warrants under subdivision 2 for the payment of principal or interest on any 38.8debt obligations for which a district did not, prior to their issuance, obligate itself to be 38.9bound by the provisions of this section.38.10    Subd. 10. Continuing disclosure agreements. The commissioner of finance 38.11may enter into written agreements or contracts relating to the continuing disclosure of 38.12information needed to facilitate the ability of school districts or intermediate school 38.13districts to issue debt obligations according to federal securities laws, rules, and 38.14regulations, including securities and exchange commission rules and regulations, section 38.15240.15c2-12. Such agreements or contracts may be in any form the commissioner of 38.16finance deems reasonable and in the state's best interests.38.17EFFECTIVE DATE.This section is effective the day following final enactment.38.18    Sec. 39. [127A.331] SCHOOL ENDOWMENT FUND; USE OF REVENUE.38.19    A school that receives school endowment fund revenue under section 127A.33 38.20in excess of $36 per pupil in average daily membership may use that revenue only for 38.21the following purposes:38.22    (1) to purchase or lease computers and related materials, copying machines, 38.23telecommunications equipment, and other noninstructional equipment;38.24    (2) to purchase or lease assistive technology or equipment for instructional programs;38.25    (3) to purchase new and replacement library media resources or technology;38.26    (4) to pay for ongoing or recurring telecommunications/Internet access costs 38.27associated with Internet access, data lines, and video links; and 38.28    (5) to pay for service provider installation fees for installation of new 38.29telecommunications lines or increased bandwidth.38.30EFFECTIVE DATE.This section is effective for revenue for fiscal year 2010.38.31    Sec. 40. Minnesota Statutes 2006, section 127A.45, subdivision 16, is amended to read:38.32    Subd. 16. Payments to third parties. Notwithstanding subdivision 3, the current 38.33year aid payment percentage of the amounts under section 
         123A.26, subdivision 3 and 39.1section 124D.041, shall be paid in equal installments on August 30, December 30, and 39.2March 30, with a final adjustment payment on October 30 of the next fiscal year of the 39.3remaining amount.39.4    Sec. 41. [145.986] STATEWIDE HEALTH IMPROVEMENT PROGRAM.39.5    Subdivision 1.Goals.The initial goals of the public health improvement program 39.6are to reduce the percentage of Minnesotans who are obese or overweight to less than half 39.7by the year 2020 and to reduce tobacco smoking by two percent annually starting in 2011. 39.8By 2011, and considering available funding, the commissioner of health, in consultation 39.9with the State Community Health Advisory Committee established in section 145A.10, 39.10subdivision 10, and other stakeholders, may make recommendations as to future goals 39.11related to alcohol use and illegal drug use.39.12    Subd. 2.Funding local communities.Beginning January 1, 2009, the 39.13commissioner of health must provide funding to community health boards to convene, 39.14coordinate, and lead locally developed programs targeted at achieving measurable health 39.15improvement goals. Funding to each community health board will be distributed based on 39.16a per capita formula, with a base allocation of $50,000 to each community health board 39.17that receives funding. By January 15, 2011, the commissioner of health must recommend 39.18whether additional funding should be distributed to community health boards based on 39.19health disparities demonstrated in the populations served.39.20    Subd. 3.Outcomes.(a) The commissioner of health must set performance measures 39.21and annually review the progress of local communities in improving the performance 39.22measures. The commissioner may provide technical assistance and corrective action plans 39.23to ensure that local communities are making sufficient progress.39.24    (b) The commissioner must measure current public health data, using existing 39.25measures and data collection systems when available, to determine baseline data against 39.26which progress shall be monitored.39.27    Subd. 4.Media campaign.The commissioner of health must conduct a statewide 39.28marketing campaign using public media to reinforce local efforts at addressing health 39.29improvement goals. The commissioner must develop the statewide campaigns and 39.30determine the timing of these campaigns in consultation with local public health 39.31representatives.39.32    Sec. 42. Laws 2007, chapter 146, article 2, section 46, subdivision 13, is amended to 39.33read:40.1    Subd. 13.  Preadvanced placement, advanced placement, international 40.2baccalaureate, and concurrent enrollment programs. For preadvanced placement, 40.3advanced placement, international baccalaureate, and concurrent enrollment programs 40.4under Minnesota Statutes, sections 
         120B.132 and 
         124D.091: 

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

40.7    Of this amount, $2,500,000 each year is for concurrent enrollment program aid 40.8under Minnesota Statutes, section 
         124D.091. If the appropriation is insufficient, the 40.9commissioner must proportionately reduce the aid payment to each district. Any balance 40.10in the first year does not cancel but is available in the second year.40.11    The base appropriation for fiscal year 2010 and later is $2,000,000.40.12EFFECTIVE DATE.This section is effective the day following final enactment.40.13    Sec. 43. Laws 2007, chapter 146, article 3, section 23, subdivision 2, is amended to 40.14read:40.15    Subd. 2.  Report.(a) The task force must submit to the education policy and finance 40.16committees of the legislature by February 15, 2008 2009, a report that identifies and 40.17clearly and concisely explains each provision in state law or rule that exceeds or expands 40.18upon a minimum federal requirement contained in law or regulation for providing special 40.19education programs and services to eligible students. The report also must recommend 40.20which state provisions statutes and rules that exceed or expand upon a minimum federal 40.21requirement may be amended to conform with minimum federal requirements or made 40.22more effective as determined by a majority of the task force members. The task force must 40.23recommend rules governing the use of aversive and deprivation procedures by school 40.24district employees or persons under contract with a school district. The task force expires 40.25when it submits its report to the legislature. 40.26    (b) Consistent with subdivision 1, the Department of Education member of the 40.27task force representing regulators shall be replaced with a parent advocate selected by a 40.28statewide organization that advocates on behalf of families with children with disabilities.40.29    (c) The Department of Education must provide technical assistance at the request of 40.30the task force.40.31EFFECTIVE DATE.This section is effective the day following final enactment.40.32    Sec. 44. Laws 2007, chapter 146, article 3, section 24, subdivision 9, is amended to 40.33read:41.1    Subd. 9.  Special Education Task Force. For the task force to compare federal 41.2and state special education requirements: 

41.3$ 20,000 40,000..... 2008 

41.4    Any balance in the first year does not cancel but is available in the second year.41.5    This is a onetime appropriation.41.6EFFECTIVE DATE.This section is effective the day following final enactment.41.7    Sec. 45. Laws 2007, chapter 146, article 5, section 13, subdivision 5, is amended to 41.8read:41.9    Subd. 5.  Plainview-Elgin-Millville fund balance replacement aid.41.10    For fund balance replacement aid for Independent School District No. 2899, 41.11Plainview-Elgin-Millville: 

41.12$ 17,000 24,000..... 2008 

41.13    This is a onetime appropriation.41.14EFFECTIVE DATE.This section is effective the day following final enactment.41.15    Sec. 46. Laws 2007, chapter 146, article 7, section 4, is amended to read:41.16    Sec. 4. APPROPRIATIONS; DEPARTMENT OF EDUCATION.41.17    Subdivision 1.  Department of Education. Unless otherwise indicated, the sums 41.18indicated in this section are appropriated from the general fund to the Department of 41.19Education for the fiscal years designated. 41.20    Subd. 2.  Department. (a) For the Department of Education: 

41.21$ 22,169,000..... 2008 41.2241.23$ 22,653,00021,761,000..... 2009 

41.24    Any balance in the first year does not cancel but is available in the second year. 41.25    (b) $7,000 in fiscal year 2008 is for GRAD test rulemaking. 41.26    (c) $7,000 in fiscal year 2008 is for rulemaking under section 3. 41.27    (d) $40,000 each year is for an early hearing loss intervention coordinator under 41.28Minnesota Statutes, section 
         125A.63, subdivision 5. If the department expends federal 41.29funds to employ a hearing loss coordinator under Minnesota Statutes, section 
         125.63, 41.30subdivision 5
         , then the appropriation under this paragraph is reallocated for purposes of 41.31employing a world languages coordinator. 41.32    (e) $260,000 each year is for the Minnesota Children's Museum. 41.33    (f) $41,000 each year is for the Minnesota Academy of Science. 42.1    (g) $619,000 in fiscal year 2008 and $632,000 in fiscal year 2009 are for the Board 42.2of Teaching. 42.3    (h) $163,000 in fiscal year 2008 and $171,000 in fiscal year 2009 are for the Board 42.4of School Administrators. 42.5    (i) $50,000 each year is for the Duluth Children's Museum. 42.6    (j) The expenditures of federal grants and aids as shown in the biennial budget 42.7document and its supplements are approved and appropriated and shall be spent as 42.8indicated. 42.9    (k) None of the amounts appropriated under this subdivision may be used for 42.10Minnesota's Washington, D.C., office.42.11    Sec. 47. Laws 2007, First Special Session chapter 2, article 1, section 11, subdivision 42.121, is amended to read:

42.13Subdivision 1. Total Appropriation$ 584,000 298,000

42.14The appropriations in this section are from 42.15the general fund. The amounts that may be 42.16spent for each purpose are specified in the 42.17following subdivisions. 42.18EFFECTIVE DATE.This section is effective the day following final enactment.42.19    Sec. 48. Laws 2007, First Special Session chapter 2, article 1, section 11, subdivision 42.202, is amended to read:

42.2142.22Subd. 2. Independent School District No. 239, Rushford-Peterson

42.23(a) Flood Enrollment Impact Aid89,000 

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

42.32(b) Disaster Relief Facilities Grant250,000 150,000

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

43.9(c) Pupil Transportation Aid40,000 

43.10For increased costs associated with 43.11transporting students as a result of the floods 43.12of August 2007. 43.13EFFECTIVE DATE.This section is effective the day following final enactment.43.14    Sec. 49. Laws 2007, First Special Session chapter 2, article 1, section 11, subdivision 43.156, is amended to read:

43.1643.17Subd. 6. Disaster Relief Facilities Grants to Other Districts90,00014,000

43.18For facilities cleanup, repair, and replacement 43.19costs related to the floods of August 2007 not 43.20covered by the district's insurance settlement 43.21or through Federal Emergency Management 43.22Agency payments. The commissioner of 43.23education may request the school district 43.24to provide necessary information before 43.25awarding a grant. School districts not 43.26included in subdivisions 2 to 5 must be given 43.27priority in the allocation of this appropriation.43.28EFFECTIVE DATE.This section is effective the day following final enactment.43.29    Sec. 50. FUND TRANSFERS.43.30    Subdivision 1.Capital account transfers.Notwithstanding any law to the contrary, 43.31on June 30, 2008, a school district may transfer money from its reserved for operating 43.32capital account to its undesignated balance in the general fund. The amount transferred 44.1by any school district must not exceed $51 times the district's adjusted marginal cost 44.2pupil units for fiscal year 2007. This transfer may occur only after the school board has 44.3adopted a written resolution stating the amount of the transfer and declaring that the 44.4school district's operating capital needs are being met.44.5    Subd. 2.Reserved for operating capital account transfer; Balaton school 44.6district.Notwithstanding Minnesota Statutes, section 123B.79 or 123B.80, or subdivision 44.71, on June 30, 2008, Independent School District No. 411, Balaton, may transfer up to 44.8$70,000 from its reserved for operating capital account to its undesignated general fund 44.9balance.44.10    Subd. 3.Reserved for operating capital account transfer; East Central school 44.11district.Notwithstanding Minnesota Statutes, section 123B.79 or 123B.80, or subdivision 44.121, on June 30, 2008, Independent School District No. 2580, East Central, may transfer up 44.13to $300,000 from its reserved for operating capital account to its undesignated general 44.14fund balance.44.15EFFECTIVE DATE.This section is effective the day following final enactment.44.16    Sec. 51. ONETIME GENERAL EDUCATION REVENUE INCREASE; FISCAL 44.17YEAR 2009 ONLY.44.18    A school district's general education revenue under Minnesota Statutes, section 44.19126C.10, is increased for fiscal year 2009 only by an amount equal to $51 times the 44.20district's adjusted marginal cost pupil units for that year.44.21    Sec. 52. ALTERNATIVE TEACHER COMPENSATION AID.44.22    A school district that has not applied for alternative teacher compensation aid under 44.23Minnesota Statutes, section 126C.10, subdivision 34, by March 20, 2008, is not eligible 44.24for aid under that subdivision for fiscal year 2009. Nothing in this section limits a district's 44.25eligibility for alternative teacher compensation aid in subsequent fiscal years.44.26EFFECTIVE DATE.This section is effective the day following final enactment.44.27    Sec. 53. IMPLEMENTING A STUDENT GROWTH-BASED VALUE-ADDED 44.28SYSTEM.44.29    (a) To implement the requirements of Minnesota Statutes, section 120B.35, 44.30subdivision 3, paragraph (b), and to help parents and members of the public compare the 44.31reported data, the commissioner must convene a group of expert school district assessment 44.32and evaluation staff, including a recognized Minnesota assessment group composed 45.1of assessment and evaluation directors and staff and researchers under Minnesota 45.2Statutes, section 120B.299, subdivision 6, and interested stakeholders, including school 45.3superintendents, school principals, school teachers, and parents to examine the actual 45.4statewide performance of students using Minnesota's growth-based value-added system 45.5and establish criteria for identifying schools and school districts that demonstrate 45.6accelerated growth in order to advance educators' professional development and replicate 45.7programs that succeed in meeting students' diverse learning needs.45.8    (b) The commissioner must submit a written report to the education committees of 45.9the house of representatives and senate by February 15, 2009, describing the criteria for 45.10identifying schools and school districts that demonstrate accelerated growth. The group 45.11convened under this section expires on June 30, 2009.45.12EFFECTIVE DATE.This section is effective the day following final enactment 45.13and applies to school report cards in the 2008-2009 school year and later.45.14    Sec. 54. IMPLEMENTING RIGOROUS COURSEWORK MEASURES 45.15RELATED TO STUDENT PERFORMANCE.45.16    (a) To implement the requirements of Minnesota Statutes, section 120B.35, 45.17subdivision 3, paragraph (c), clauses (1) and (2), and to help parents and members of the 45.18public compare the reported data, the commissioner of education must convene a group of 45.19recognized and qualified experts and interested stakeholders, including parents among 45.20other stakeholders, to develop a model projecting anticipated performance of each high 45.21school on preparation and rigorous coursework measures that compares the school with 45.22similar schools. The model must use information about entering high school students 45.23based on particular background characteristics that are predictive of differing rates of 45.24college readiness. These characteristics include grade 8 achievement levels, high school 45.25student mobility, high school student attendance, and the size of each entering ninth grade 45.26class. The group of experts and stakeholders may examine other characteristics not part 45.27of the prediction model including the nine student categories identified under the federal 45.282001 No Child Left Behind Act, and two student gender categories of male and female, 45.29respectively. The commissioner annually must use the predicted level of entering students' 45.30performance to provide a context for interpreting graduating students' actual performance. 45.31The group convened under this section expires June 30, 2011.45.32    (b) Consistent with paragraph (a), the commissioner also must propose an expanded 45.33high school student data system to report preparation and rigorous coursework measures 45.34and facilitate additional research on college readiness. This proposed data system must 45.35expect school districts and charter schools to report data to the state education department 46.1on each course a high school student takes and completes. The commissioner must link 46.2the course data file to the department's existing student reporting system. The proposed 46.3data system must enable the commissioner to prepare detailed reports, consistent with the 46.4requirements in Minnesota Statutes, section 120B.35, subdivision 3, paragraph (d), clauses 46.5(1) and (2), and support the development of a state P-16 longitudinal data system.46.6EFFECTIVE DATE.This section is effective the day following final enactment 46.7and applies to school report cards beginning July 1, 2011.46.8    Sec. 55. IMPLEMENTING MEASURES FOR ASSESSING STUDENTS' 46.9SELF-REPORTED SENSE OF SCHOOL SAFETY, ENGAGEMENT IN 46.10SCHOOL, AND THE QUALITY OF RELATIONSHIPS WITH TEACHERS, 46.11ADMINISTRATORS, AND OTHER STUDENTS.46.12    (a) To implement the requirements of Minnesota Statutes, section 120B.35, 46.13subdivision 3, paragraph (d), and to help parents and members of the public compare the 46.14reported data, the commissioner of education, in consultation with interested stakeholders, 46.15including parents among other stakeholders, must convene a group of recognized and 46.16qualified experts to:46.17    (1) analyze the University of Minnesota student safety and engagement survey 46.18instrument and other commonly recognized survey instruments to select the survey 46.19instrument that best meets state accountability requirements;46.20    (2) ensure that the selected survey instrument has sound psychometric properties and 46.21is useful for intervention planning;46.22    (3) determine at what grade levels to administer the survey instrument and ensure 46.23that the survey instrument can be used at those grade levels; and46.24    (4) determine through disaggregated use of survey indicators or other means how to 46.25report "safety" in order to comply with federal law.46.26    (b) The commissioner must submit a written report to the education committees of 46.27the house of representatives and senate by February 15, 2009, presenting the experts' 46.28responses to paragraph (a), clauses (1) to (4). The group convened under this section 46.29expires June 30, 2009.46.30EFFECTIVE DATE.This section is effective the day following final enactment 46.31and applies to school report cards beginning July 1, 2011.46.32    Sec. 56. GROWTH-BASED VALUE-ADDED SYSTEM.47.1    The growth-based value-added system used by the commissioner of education to 47.2comply with Minnesota Statutes, section 120B.35, subdivision 3, paragraph (b), must 47.3be consistent with the growth-based value-added model contained in the document 47.4labeled "Educational Report Card Growth Model" developed in partnership with the 47.5Minnesota Department of Education. The document must be deposited with the 47.6Office of the Revisor of Statutes, the Legislative Reference Library, and the State Law 47.7Library, where the document shall be maintained until the commissioner implements the 47.8growth-based value-added system under Minnesota Statutes, section 120B.35, subdivision 47.93, paragraph (b). The recognized Minnesota assessment group composed of assessment 47.10and evaluation directors and staff and researchers under Minnesota Statutes, section 47.11120B.299, subdivision 6, must determine whether the growth-based value-added model 47.12the commissioner uses to comply with Minnesota Statutes, section 120B.35, subdivision 47.133, paragraph (b), is consistent with the deposited document and report its determination to 47.14the education committees of the house of representatives and senate by February 15, 2009.47.15EFFECTIVE DATE.This section is effective the day following final enactment.47.16    Sec. 57. EXPEDITED PROCESS; SPECIFIC LEARNING DISABILITIES 47.17RULE.47.18    The commissioner of education may use the expedited process under Minnesota 47.19Statutes, section 14.389, to conform Minnesota Rules, part 3525.1341, to new federal 47.20requirements on specific learning disabilities under Public Law 108-446, sections 602(30) 47.21and 614(b)(6), the Individuals with Disabilities Education Improvement Act of 2004, 47.22and its implementing regulations.47.23EFFECTIVE DATE.This section is effective the day following final enactment.47.24    Sec. 58. ENDING PARTICIPATION IN NO CHILD LEFT BEHIND.47.25    The commissioner of education must nullify and revoke by August 1, 2009, the 47.26consolidated state plan that the state of Minnesota submitted to the federal Department 47.27of Education on implementing the No Child Left Behind Act of 2001, and any other 47.28Minnesota state contract or agreement entered into under the provisions of the No Child 47.29Left Behind Act of 2001.47.30    Sec. 59. APPROPRIATIONS.48.1    Subdivision 1.Department of Education.The sums indicated in this section are 48.2appropriated from the general fund, unless otherwise indicated, to the Department of 48.3Education for the fiscal years designated.48.4    Subd. 2.Additional general education revenue.For additional general education 48.5aid according to section 51:

48.6$23,262,000.....2009

48.7    This appropriation is in addition to any other appropriation for this purpose.48.8    This 2009 appropriation includes $0 for 2008 and $18,926,000 for 2009.48.9    Subd. 3.Rushford-Peterson.For a grant to Independent School District No. 48.10239, Rushford-Peterson, for school district flood enrollment impact aid and aid for the 48.11increased costs of transporting students as a result of the floods of August 2007.

48.12$158,000.....2009

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

48.17$100,000.....2009

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

48.21$100,000.....2009

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

48.26$400,000.....2009

48.27    The base appropriation for this program for fiscal year 2010 and later is $400,000.48.28    Subd. 7.Board of Teaching; licensure by portfolio.For the Board of Teaching 48.29for licensure by portfolio:

48.30$17,000.....2009

49.1    This appropriation is from the educator licensure portfolio account of the special 49.2revenue fund.49.3    Sec. 60.  REPEALER.49.4(a) Minnesota Statutes 2006, sections 121A.67; 125A.16; 125A.19; 125A.20; and 49.5125A.57, are repealed.49.6(b) Laws 2006, chapter 263, article 3, section 16; and Laws 2007, First Special 49.7Session chapter 2, article 1, section 11, subdivisions 3, and 4, are repealed.49.8ARTICLE 249.9FORECAST ADJUSTMENTS49.10    Section 1. Laws 2007, chapter 146, article 1, section 24, subdivision 2, is amended to 49.11read:49.12    Subd. 2.  General education aid. For general education aid under Minnesota 49.13Statutes, section 
         126C.13, subdivision 4:

49.1449.15$ 5,618,342,0005,600,647,000..... 2008 49.1649.17$ 5,618,342,0005,649,098,000..... 2009 

49.18    The 2008 appropriation includes $531,733,000 $536,251,000 for 2007 and 49.19$5,073,250,000 $5,064,396,000 for 2008.49.20    The 2009 appropriation includes $546,314,000 $543,752,000 for 2008 and 49.21$5,072,028,000$5,105,346,000 for 2009.49.22    Sec. 2. Laws 2007, chapter 146, article 1, section 24, subdivision 3, is amended to read:49.23    Subd. 3.  Referendum tax base replacement aid. For referendum tax base 49.24replacement aid under Minnesota Statutes, section 
         126C.17, subdivision 7a:

49.25$ 870,000861,000..... 2008 

49.26    The 2008 appropriation includes $870,000 $861,000 for 2007 and $0 for 2008.49.27    Sec. 3. Laws 2007, chapter 146, article 1, section 24, subdivision 4, is amended to read:49.28    Subd. 4.  Enrollment options transportation. For transportation of pupils attending 49.29postsecondary institutions under Minnesota Statutes, section 
         124D.09, or for transportation 49.30of pupils attending nonresident districts under Minnesota Statutes, section 
         124D.03:

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

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

50.450.5$ 1,343,0001,333,000..... 2008 50.650.7$ 1,347,0001,629,000..... 2009 

50.8    The 2008 appropriation includes $76,000 for 2007 and $1,267,000 $1,257,00050.9for 2008.50.10    The 2009 appropriation includes $140,000 $139,000 for 2008 and $1,207,00050.11$1,490,000 for 2009.50.12    Sec. 5. Laws 2007, chapter 146, article 1, section 24, subdivision 6, is amended to read:50.13    Subd. 6.  Consolidation transition. For districts consolidating under Minnesota 50.14Statutes, section 
         123A.485:

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

50.17    The 2008 appropriation includes $43,000 for 2007 and $522,000 $197,000 for 2008.50.18    The 2009 appropriation includes $57,000 $21,000 for 2008 and $155,000 $318,00050.19for 2009.50.20    Sec. 6. Laws 2007, chapter 146, article 1, section 24, subdivision 7, is amended to read:50.21    Subd. 7.  Nonpublic pupil education aid. For nonpublic pupil education aid under 50.22Minnesota Statutes, sections 
         123B.40 to 
         123B.43, and 
         123B.87:

50.2350.24$ 16,290,00015,601,000..... 2008 50.2550.26$ 16,620,00016,608,000..... 2009 

50.27    The 2008 appropriation includes $1,606,000 $1,214,000 for 2007 and $14,684,00050.28$14,387,000 for 2008.50.29    The 2009 appropriation includes $1,631,000 $1,598,000 for 2008 and $14,989,00050.30$15,010,000 for 2009.50.31    Sec. 7. Laws 2007, chapter 146, article 1, section 24, subdivision 8, is amended to read:50.32    Subd. 8.  Nonpublic pupil transportation. For nonpublic pupil transportation aid 50.33under Minnesota Statutes, section 
         123B.92, subdivision 9:

51.151.2$ 21,551,00020,755,000..... 2008 51.351.4$ 21,392,00021,007,000..... 2009 

51.5    The 2008 appropriation includes $2,124,000 for 2007 and $19,427,000 $18,631,00051.6for 2008.51.7    The 2009 appropriation includes $2,158,000 $2,070,000 for 2008 and $19,234,00051.8$18,937,000 for 2009.51.9B. EDUCATION EXCELLENCE51.10    Sec. 8. Laws 2007, chapter 146, article 2, section 46, subdivision 2, is amended to read:51.11    Subd. 2.  Charter school building lease aid. For building lease aid under Minnesota 51.12Statutes, section 
         124D.11, subdivision 4: 

51.1351.14$ 31,875,00032,817,000..... 2008 51.1551.16$ 36,193,00037,527,000..... 2009 

51.17    The 2008 appropriation includes $2,814,000 for 2007 and $29,061,000 $30,003,00051.18for 2008. 51.19    The 2009 appropriation includes $3,229,000 $3,333,000 for 2008 and $32,964,00051.20$34,194,000 for 2009. 51.21    Sec. 9. Laws 2007, chapter 146, article 2, section 46, subdivision 3, is amended to read:51.22    Subd. 3.  Charter school startup cost aid. For charter school startup cost aid 51.23under Minnesota Statutes, section 
         124D.11: 

51.2451.25$ 1,896,0001,801,000..... 2008 51.2651.27$ 2,161,0001,987,000..... 2009 

51.28    The 2008 appropriation includes $241,000$239,000 for 2007 and $1,655,00051.29$1,562,000 for 2008. 51.30    The 2009 appropriation includes $183,000 $173,000 for 2008 and $1,978,00051.31$1,814,000 for 2009. 51.32    Sec. 10. Laws 2007, chapter 146, article 2, section 46, subdivision 4, is amended to 51.33read:52.1    Subd. 4.  Integration aid. For integration aid under Minnesota Statutes, section 52.2124D.86, subdivision 5
         : 

52.352.4$ 61,769,00059,036,000..... 2008 52.552.6$ 61,000,00062,448,000..... 2009 

52.7    The 2008 appropriation includes $5,824,000 for 2007 and $55,945,000 $53,212,00052.8for 2008. 52.9    The 2009 appropriation includes $6,216,000 $5,912,000 for 2008 and $54,784,00052.10$56,536,000 for 2009. 52.11    Sec. 11. Laws 2007, chapter 146, article 2, section 46, subdivision 6, is amended to 52.12read:52.13    Subd. 6.  Interdistrict desegregation or integration transportation grants. For 52.14interdistrict desegregation or integration transportation grants under Minnesota Statutes, 52.15section 
         124D.87: 

52.1652.17$ 9,639,0009,901,000..... 2008 52.1852.19$ 11,567,00011,881,000..... 2009 

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

52.2452.25$ 2,238,0002,207,000..... 2008 52.2652.27$ 2,422,0002,392,000..... 2009 

52.28    The 2008 appropriation includes $204,000 for 2007 and $2,034,000 $2,003,00052.29for 2008. 52.30    The 2009 appropriation includes $226,000 $222,000 for 2008 and $2,196,00052.31$2,170,000 for 2009. 52.32C. SPECIAL PROGRAMS52.33    Sec. 13. Laws 2007, chapter 146, article 3, section 24, subdivision 3, is amended to 52.34read:53.1    Subd. 3.  Aid for children with disabilities. For aid under Minnesota Statutes, 53.2section 
         125A.75, subdivision 3, for children with disabilities placed in residential facilities 53.3within the district boundaries for whom no district of residence can be determined: 

53.453.5$ 1,538,0002,086,000..... 2008 53.653.7$ 1,729,0002,282,000..... 2009 

53.8    If the appropriation for either year is insufficient, the appropriation for the other 53.9year is available. 53.10    Sec. 14. Laws 2007, chapter 146, article 3, section 24, subdivision 4, is amended to 53.11read:53.12    Subd. 4.  Travel for home-based services. For aid for teacher travel for home-based 53.13services under Minnesota Statutes, section 
         125A.75, subdivision 1: 

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

53.16    The 2008 appropriation includes $22,000 for 2007 and $232,000 $185,000 for 2008. 53.17    The 2009 appropriation includes $25,000 $20,000 for 2008 and $259,000 $207,00053.18for 2009. 53.19D. FACILITIES AND TECHNOLOGY53.20    Sec. 15. Laws 2007, chapter 146, article 4, section 16, subdivision 2, is amended to 53.21read:53.22    Subd. 2.  Health and safety revenue. For health and safety aid according to 53.23Minnesota Statutes, section 
         123B.57, subdivision 5: 

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

53.26    The 2008 appropriation includes $20,000 for 2007 and $170,000 $234,000 for 2008. 53.27    The 2009 appropriation includes $18,000 $26,000 for 2008 and $161,000 $77,00053.28for 2009. 53.29    Sec. 16. Laws 2007, chapter 146, article 4, section 16, subdivision 3, is amended to 53.30read:53.31    Subd. 3.  Debt service equalization. For debt service aid according to Minnesota 53.32Statutes, section 
         123B.53, subdivision 6: 

54.154.2$ 14,813,00014,814,000..... 2008 54.354.4$ 11,124,0009,109,000..... 2009 

54.5    The 2008 appropriation includes $1,767,000 $1,766,000 for 2007 and $13,046,00054.6$13,048,000 for 2008. 54.7    The 2009 appropriation includes $1,450,000 $1,449,000 for 2008 and $9,674,00054.8$7,660,000 for 2009. 54.9    Sec. 17. Laws 2007, chapter 146, article 4, section 16, subdivision 6, is amended to 54.10read:54.11    Subd. 6.  Deferred maintenance aid. For deferred maintenance aid, according to 54.12Minnesota Statutes, section 
         123B.591, subdivision 4: 

54.1354.14$ 3,290,0003,232,000..... 2008 54.1554.16$ 2,667,0002,627,000..... 2009 

54.17    The 2008 appropriation includes $0 for 2007 and $3,290,000 $3,232,000 for 2008. 54.18    The 2009 appropriation includes $365,000 $359,000 for 2008 and $2,302,00054.19$2,268,000 for 2009. 54.20    Sec. 18. Laws 2007, chapter 146, article 4, section 16, subdivision 8, is amended to 54.21read:54.22    Subd. 8.  School technology and operating capital aid grants. For school 54.23technology and operating capital grants under section 11: 

54.2454.25$ 38,145,00038,236,000..... 2008 54.2654.27$ 52,676,00052,454,000..... 2009 

54.28    This is a onetime appropriation. 54.29E. NUTRITION AND ACCOUNTING54.30    Sec. 19. Laws 2007, chapter 146, article 5, section 13, subdivision 2, is amended to 54.31read:54.32    Subd. 2.  School lunch. For school lunch aid according to Minnesota Statutes, 54.33section 
         124D.111, and Code of Federal Regulations, title 7, section 
         210.17: 

55.155.2$ 12,022,00012,094,000..... 2008 55.355.4$ 12,166,00012,394,000..... 2009 

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

55.1055.11$ 5,460,0005,583,000..... 2008 55.1255.13$ 5,695,0005,994,000..... 2009 

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

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

55.20F. EARLY CHILDHOOD AND ADULT PROGRAMS55.21    Sec. 22. Laws 2007, chapter 146, article 9, section 17, subdivision 2, is amended to 55.22read:55.23    Subd. 2.  Early childhood family education aid. For early childhood family 55.24education aid under Minnesota Statutes, section 
         124D.135: 

55.2555.26$ 21,106,00021,092,000..... 2008 55.2755.28$ 29,601,00029,324,000..... 2009 

55.29    The 2008 appropriation includes $1,796,000 for 2007 and $19,310,000 $19,296,00055.30for 2008. 55.31    The 2009 appropriation includes $2,145,000 $2,144,000 for 2008 and $27,456,00055.32$27,180,000 for 2009. 56.1    Sec. 23. Laws 2007, chapter 146, article 9, section 17, subdivision 3, is amended to 56.2read:56.3    Subd. 3.  School readiness. For revenue for school readiness programs under 56.4Minnesota Statutes, sections 
         124D.15 and 
         124D.16: 

56.556.6$ 9,995,0009,987,000..... 2008 56.7$ 10,095,000..... 2009 

56.8    The 2008 appropriation includes $909,000 $901,000 for 2007 and $9,086,000 for 56.92008. 56.10    The 2009 appropriation includes $1,009,000 for 2008 and $9,086,000 for 2009. 56.11    Sec. 24. Laws 2007, chapter 146, article 9, section 17, subdivision 4, is amended to 56.12read:56.13    Subd. 4.  Health and developmental screening aid. For health and developmental 56.14screening aid under Minnesota Statutes, sections 
         121A.17 and 
         121A.19: 

56.1556.16$ 3,159,0002,624,000..... 2008 56.1756.18$ 3,330,0002,656,000..... 2009 

56.19    The 2008 appropriation includes $288,000 for 2007 and $2,871,000 $2,336,00056.20for 2008. 56.21    The 2009 appropriation includes $319,000 $259,000 for 2008 and $3,011,00056.22$2,397,000 for 2009. 56.23    Sec. 25. Laws 2007, chapter 146, article 9, section 17, subdivision 8, is amended to 56.24read:56.25    Subd. 8.  Community education aid. For community education aid under 56.26Minnesota Statutes, section 
         124D.20: 

56.2756.28$ 1,307,0001,299,000..... 2008 56.29$ 816,000796,000..... 2009 

56.30    The 2008 appropriation includes $195,000 for 2007 and $1,112,000 $1,104,00056.31for 2008. 56.32    The 2009 appropriation includes $123,000 $122,000 for 2008 and $693,00056.33$674,000 for 2009. 57.1    Sec. 26. Laws 2007, chapter 146, article 9, section 17, subdivision 9, is amended to 57.2read:57.3    Subd. 9.  Adults with disabilities program aid. For adults with disabilities 57.4programs under Minnesota Statutes, section 
         124D.56: 

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

57.7    The 2008 appropriation includes $71,000 $70,000 for 2007 and $639,000 for 2008. 57.8    The 2009 appropriation includes $71,000 for 2008 and $639,000 for 2009. 57.9    School districts operating existing adults with disabilities programs that are not fully 57.10funded shall receive full funding for the program beginning in fiscal year 2008 before the 57.11commissioner awards grants to other districts. 57.12    Sec. 27. Laws 2007, chapter 146, article 9, section 17, subdivision 13, is amended to 57.13read:57.14    Subd. 13.  Adult basic education aid. For adult basic education aid under 57.15Minnesota Statutes, section 
         124D.531: 

57.1657.17$ 40,347,00040,344,000..... 2008 57.1857.19$ 41,745,00041,712,000..... 2009 

57.20    The 2008 appropriation includes $3,759,000 for 2007 and $36,588,000 $36,585,00057.21for 2008. 57.22    The 2009 appropriation includes $4,065,000 for 2008 and $37,680,000 $37,647,00057.23for 2009.