1.1 	A bill for an act
1.2 	relating to education; providing for early childhood and family, kindergarten 
1.3 	through grade 12, and adult education including general education, education 
1.4 	excellence, special programs, facilities and technology, nutrition and accounting, 
1.5 	libraries, early childhood education, prevention, self-sufficiency and lifelong 
1.6 	learning, state agencies, forecast adjustments, and technical and conforming 
1.7 	amendments; providing for reports; providing for rulemaking; appropriating 
1.8 	money;amending Minnesota Statutes 2006, sections 16A.152, subdivision 2; 
1.9 	119A.52; 120A.22, subdivision 7; 120B.024; 120B.12, subdivision 2; 120B.132; 
1.10 	121A.17, subdivision 5; 121A.19; 122A.16; 122A.415, by adding subdivisions; 
1.11 	122A.61, by adding a subdivision; 122A.628, subdivision 2; 123A.44; 123A.441; 
1.12 	123A.442; 123A.443; 123A.73, subdivision 8; 123B.02, by adding a subdivision; 
1.13 	123B.143, subdivision 1; 123B.53, subdivision 1; 123B.54; 123B.57, subdivision 
1.14 	3; 123B.63, subdivision 3; 123B.71, subdivision 9; 123B.79, subdivision 6, by 
1.15 	adding a subdivision; 123B.81, subdivisions 2, 4, 7; 123B.83, subdivision 2; 
1.16 	123B.92, subdivisions 1, 3; 124D.095, subdivision 3; 124D.10, subdivisions 
1.17 	3, 4, 23a, 24; 124D.11, subdivision 1; 124D.111, subdivision 1; 124D.128, 
1.18 	subdivisions 1, 2, 3; 124D.13, subdivision 2, by adding a subdivision; 124D.135, 
1.19 	subdivisions 1, 3, 5, 6; 124D.15, subdivision 3; 124D.34, subdivision 7; 124D.42, 
1.20 	by adding a subdivision; 124D.4531, subdivisions 1, 3; 124D.454, subdivisions 
1.21 	2, 3; 124D.531, subdivision 4; 124D.55; 124D.65, subdivisions 6, 11; 124D.84, 
1.22 	subdivision 1; 125A.11, subdivision 1; 125A.14; 125A.39; 125A.42; 125A.44; 
1.23 	125A.45; 125A.56; 125A.75, subdivisions 1, 4, by adding a subdivision; 
1.24 	125A.76, subdivisions 1, 2, 4, 5; 125A.79, subdivisions 1, 5, 6, 8; 125B.15; 
1.25 	126C.01, subdivision 9; 126C.05, subdivision 1; 126C.10, subdivisions 1, 2, 
1.26 	13a, 13b, 18, 24, 26, 27, 29, 30, 31, 32, 33, 34, 35, 36, by adding a subdivision; 
1.27 	126C.13, subdivision 4, by adding subdivisions; 126C.21, subdivisions 3, 5; 
1.28 	126C.41, subdivision 2; 126C.44; 126C.45; 126C.48, subdivision 7; 127A.441; 
1.29 	127A.47, subdivisions 7, 8; 127A.49, subdivisions 2, 3; 128D.11, subdivision 3; 
1.30 	134.31, by adding a subdivision; 134.355, subdivision 9; 272.02, subdivision 64; 
1.31 	272.029, by adding a subdivision; 275.065, subdivision 1; 517.08, subdivision 
1.32 	1c; Laws 2005, First Special Session chapter 5, article 1, section 54, subdivisions 
1.33 	2, as amended, 4, 5, as amended, 6, as amended, 7, as amended, 8, as amended; 
1.34 	article 2, sections 81, as amended; 84, subdivisions 2, as amended, 3, as 
1.35 	amended, 4, as amended, 6, as amended, 10, as amended; article 3, section 18, 
1.36 	subdivisions 2, as amended, 3, as amended, 4, as amended, 5, as amended, 6, as 
1.37 	amended; article 4, section 25, subdivisions 2, as amended, 3, as amended; article 
1.38 	5, section 17, subdivision 3, as amended; article 7, section 20, subdivisions 2, 
1.39 	as amended, 3, as amended, 4, as amended; article 8, section 8, subdivisions 
2.1 	2, as amended, 5, as amended; article 9, section 4, subdivision 2; Laws 2006, 
2.2 	chapter 263, article 3, section 15; Laws 2006, chapter 282, article 2, section 28, 
2.3 	subdivision 4; article 3, section 4, subdivision 2; proposing coding for new law 
2.4 	in Minnesota Statutes, chapters 124D; 127A; repealing Minnesota Statutes 2006, 
2.5 	sections 123A.22, subdivision 11; 123B.749; 123B.81, subdivision 8; 124D.06; 
2.6 	124D.454, subdivisions 4, 5, 6, 7; 124D.531, subdivision 5; 124D.62; 125A.10; 
2.7 	125A.75, subdivision 6; 125A.76, subdivision 3; 126C.10, subdivisions 13a, 
2.8 	13b, 25, 28, 29, 30, 32, 33, 34, 35, 36.
2.9 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

2.10 	ARTICLE 1
2.11 	GENERAL EDUCATION

2.12 	Section 1. Minnesota Statutes 2006, section 16A.152, subdivision 2, is amended to 
2.13 	read:
2.14 		Subd. 2.Additional revenues; priority. (a) If on the basis of a forecast of general 
2.15 	fund revenues and expenditures, the commissioner of finance determines that there will be 
2.16 	a positive unrestricted budgetary general fund balance at the close of the biennium, the 
2.17 	commissioner of finance must allocate money to the following accounts and purposes in 
2.18 	priority order:
2.19 	(1) the cash flow account established in subdivision 1 until that account reaches 
2.20 	$350,000,000;
2.21 	(2) the budget reserve account established in subdivision 1a until that account 
2.22 	reaches $653,000,000;
2.23 	(3) the amount necessary to increase the aid payment schedule for school district 
2.24 	aids and credits payments in section 127A.45 to not more than 90 percent rounded to the 
2.25 	nearest tenth of a percent without exceeding the amount available and with any remaining 
2.26 	funds deposited in the budget reserve; and
2.27 	(4) the amount necessary to restore all or a portion of the net aid reductions under 
2.28 	section 127A.441 and to reduce the property tax revenue recognition shift under section 
2.29 	123B.75, subdivision 5, paragraph (c) (b), and Laws 2003, First Special Session chapter 
2.30 	9, article 5, section 34, as amended by Laws 2003, First Special Session chapter 23, 
2.31 	section 20, by the same amount.
2.32 	(b) The amounts necessary to meet the requirements of this section are appropriated 
2.33 	from the general fund within two weeks after the forecast is released or, in the case of 
2.34 	transfers under paragraph (a), clauses (3) and (4), as necessary to meet the appropriations 
2.35 	schedules otherwise established in statute.
3.1 	(c) To the extent that a positive unrestricted budgetary general fund balance is 
3.2 	projected, appropriations under this section must be made before section 16A.1522 takes 
3.3 	effect.
3.4 	(d) The commissioner of finance shall certify the total dollar amount of the 
3.5 	reductions under paragraph (a), clauses (3) and (4), to the commissioner of education. The 
3.6 	commissioner of education shall increase the aid payment percentage and reduce the 
3.7 	property tax shift percentage by these amounts and apply those reductions to the current 
3.8 	fiscal year and thereafter.

3.9 	Sec. 2. Minnesota Statutes 2006, section 124D.11, subdivision 1, is amended to read:
3.10 		Subdivision 1.General education revenue. (a) General education revenue must 
3.11 	be paid to a charter school as though it were a district. The general education revenue 
3.12 	for each adjusted marginal cost pupil unit is the state average general education revenue 
3.13 	per pupil unit, plus the referendum equalization aid allowance in the pupil's district of 
3.14 	residence, minus an amount equal to the product of the formula allowance according to 
3.15 	section 126C.10, subdivision 2, times .0485 .0416, calculated without basic skills revenue, 
3.16 	extended time revenue, alternative teacher compensation revenue, transition revenue, and 
3.17 	transportation sparsity revenue, plus basic skills revenue, extended time revenue, basic 
3.18 	alternative teacher compensation aid according to section 126C.10, subdivision 34, and 
3.19 	transition revenue as though the school were a school district. The general education 
3.20 	revenue for each extended time marginal cost pupil unit equals $4,378 for fiscal year 2007 
3.21 	and $4,410 for fiscal year 2008 and later.
3.22 	(b) Notwithstanding paragraph (a), for charter schools in the first year of operation, 
3.23 	general education revenue shall be computed using the number of adjusted pupil units 
3.24 	in the current fiscal year.

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

3.26 	Sec. 3. Minnesota Statutes 2006, section 124D.128, subdivision 1, is amended to read:
3.27 		Subdivision 1.Program established. A learning year program provides instruction 
3.28 	throughout the year on an extended year calendar, extended school day calendar, or 
3.29 	both. A pupil may participate in the program and accelerate attainment of grade level 
3.30 	requirements or graduation requirements. A learning year program may begin after the 
3.31 	close of the regular school year in June. The program may be for students in one or more 
3.32 	grade levels from kindergarten through grade 12.

3.33 	Sec. 4. Minnesota Statutes 2006, section 124D.128, subdivision 2, is amended to read:
4.1 		Subd. 2.Commissioner designation. (a) An area learning center designated by the 
4.2 	state must be a site. An area learning center must provide services to students who meet 
4.3 	the criteria in section 124D.68 and who are enrolled in:
4.4 	(1) a district that is served by the center; or
4.5 	(2) a charter school located within the geographic boundaries of a district that is 
4.6 	served by the center.
4.7 	(b) A school district or charter school may be approved biennially by the state to 
4.8 	provide additional instructional programming that results in grade level acceleration. The 
4.9 	program must be designed so that students make grade progress during the school year 
4.10 	and graduate prior to the students' peers.
4.11 	(c) To be designated, a district, charter school, or center must demonstrate to the 
4.12 	commissioner that it will:
4.13 	(1) provide a program of instruction that permits pupils to receive instruction 
4.14 	throughout the entire year; and
4.15 	(2) develop and maintain a separate record system that, for purposes of section 
4.16 	126C.05, permits identification of membership attributable to pupils participating in the 
4.17 	program. The record system and identification must ensure that the program will not 
4.18 	have the effect of increasing the total number of pupil unitsaverage daily membership 
4.19 	attributable to an individual pupil as a result of a learning year program. The record 
4.20 	system must include the date the pupil originally enrolled in a learning year program, the 
4.21 	pupil's grade level, the date of each grade promotion, the average daily membership 
4.22 	generated in each grade level, the number of credits or standards earned, and the number 
4.23 	needed to graduate. 
4.24 	(b)(d) A student who has not completed a school district's graduation requirements 
4.25 	may continue to enroll in courses the student must complete in order to graduate until 
4.26 	the student satisfies the district's graduation requirements or the student is 21 years old, 
4.27 	whichever comes first.

4.28 	Sec. 5. Minnesota Statutes 2006, section 124D.128, subdivision 3, is amended to read:
4.29 		Subd. 3.Student planning. A district, charter school, or area learning center must 
4.30 	inform all pupils and their parents about the learning year program and that participation 
4.31 	in the program is optional. A continual learning plan must be developed at least annually 
4.32 	for each pupil with the participation of the pupil, parent or guardian, teachers, and other 
4.33 	staff; each participant must sign and date the plan. The plan must specify the learning 
4.34 	experiences that must occur during the entire fiscal year and,are necessary for grade 
4.35 	progression, or for secondary students, for graduation. The plan must include:
5.1 	(1) the pupil's learning objectives and experiences, including courses or credits the 
5.2 	pupil plans to complete each year and, for a secondary pupil, the graduation requirements 
5.3 	the student must complete;
5.4 	(2) the assessment measurements used to evaluate a pupil's objectives;
5.5 	(3) requirements for grade level or other appropriate progression; and
5.6 	(4) for pupils generating more than one average daily membership in a given grade, 
5.7 	an indication of which objectives were unmet.
5.8 	The plan may be modified to conform to district schedule changes. The district may 
5.9 	not modify the plan if the modification would result in delaying the student's time of 
5.10 	graduation.

5.11 	Sec. 6. Minnesota Statutes 2006, section 126C.10, subdivision 1, is amended to read:
5.12 		Subdivision 1.General education revenue. (a) For fiscal year 2006 and later years 
5.13 	2007 and 2008, the general education revenue for each district equals the sum of the 
5.14 	district's basic revenue, extended time revenue, gifted and talented revenue, basic skills 
5.15 	revenue, training and experience revenue, secondary sparsity revenue, elementary sparsity 
5.16 	revenue, transportation sparsity revenue, total operating capital revenue, equity revenue, 
5.17 	alternative teacher compensation revenue under section 122A.415, and transition revenue.
5.18 	(b) For fiscal year 2009 and later, the general education revenue for each district 
5.19 	equals the sum of the district's basic revenue, extended time revenue, gifted and talented 
5.20 	revenue, basic skills revenue, training and experience revenue, secondary sparsity revenue, 
5.21 	elementary sparsity revenue, transportation sparsity revenue, total operating capital 
5.22 	revenue, equity revenue, and transition revenue.

5.23 	Sec. 7. Minnesota Statutes 2006, section 126C.10, subdivision 2, is amended to read:
5.24 		Subd. 2.Basic revenue. The basic revenue for each district equals the formula 
5.25 	allowance times the adjusted marginal cost pupil units for the school year. The formula 
5.26 	allowance for fiscal year 2005 is $4,601. The formula allowance for fiscal year 2006 is 
5.27 	$4,783. The formula allowance for fiscal year 2007 and subsequent years is $4,974.

5.28 	Sec. 8. Minnesota Statutes 2006, section 126C.10, subdivision 13a, is amended to read:
5.29 		Subd. 13a.Operating capital levy. To obtain operating capital revenue for fiscal 
5.30 	year 2007 and later 2008, a district may levy an amount not more than the product of its 
5.31 	operating capital revenue for the fiscal year times the lesser of one or the ratio of its 
5.32 	adjusted net tax capacity per adjusted marginal cost pupil unit to the operating capital 
6.1 	equalizing factor. The operating capital equalizing factor equals $22,222 for fiscal year 
6.2 	2006, and $10,700 for fiscal year 2007 and later 2008.

6.3 	Sec. 9. Minnesota Statutes 2006, section 126C.10, subdivision 13b, is amended to read:
6.4 		Subd. 13b.Operating capital aid. For fiscal years 2007 and 2008, a district's 
6.5 	operating capital aid equals its operating capital revenue minus its operating capital levy 
6.6 	times the ratio of the actual amount levied to the permitted levy.

6.7 	Sec. 10. Minnesota Statutes 2006, section 126C.10, subdivision 18, is amended to read:
6.8 		Subd. 18.Transportation sparsity revenue allowance. (a) A district's 
6.9 	transportation sparsity allowance equals the greater of zero or the result of the following 
6.10 	computation:
6.11 	(i) Multiply the formula allowance according to subdivision 2, by .1469 .1493.
6.12 	(ii) Multiply the result in clause (i) by the district's sparsity index raised to the 
6.13 	26/10030/100 power.
6.14 	(iii) Multiply the result in clause (ii) by the district's density index raised to the 
6.15 	13/10015/100 power.
6.16 	(iv) Multiply the formula allowance according to subdivision 2, by .0485 .0416.
6.17 	(v) Subtract the result in clause (iv) from the result in clause (iii).
6.18 	(b) Transportation sparsity revenue is equal to the transportation sparsity allowance 
6.19 	times the adjusted marginal cost pupil units.

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

6.21 	Sec. 11. Minnesota Statutes 2006, section 126C.10, subdivision 24, is amended to read:
6.22 		Subd. 24.Equity revenue. (a) A school district qualifies for equity revenue if:
6.23 	(1) the school district's adjusted marginal cost pupil unit amount of basic revenue, 
6.24 	supplemental revenue, transition revenue, and referendum revenue per resident marginal 
6.25 	cost pupil unit is less than the value of the school district at or immediately above the 95th 
6.26 	percentile of school districts in its equity region for those revenue categories 27 percent of 
6.27 	the formula allowance; and
6.28 	(2) the school district's administrative offices are not located in a city of the first 
6.29 	class on July 1, 1999.
6.30 	(b) Equity revenue for a qualifying district that receives referendum revenue under 
6.31 	section 126C.17, subdivision 4, equals the product of (1) the district's adjusted marginal 
6.32 	cost pupil units for that year; times (2) the sum of (i) $13, plus (ii) $75, times the school 
6.33 	district's equity index computed under subdivision 27.
7.1 	(c) Equity revenue for a qualifying district that does not receive referendum revenue 
7.2 	under section 126C.17, subdivision 4, equals the product of the district's adjusted marginal 
7.3 	cost pupil units for that year times $13.
7.4 	(d) A school district's equity revenue is increased by the greater of zero or an amount 
7.5 	equal to the district's resident marginal cost pupil units times the difference between ten
7.6 	1.5 percent of the statewide average amount of referendum revenue per resident marginal 
7.7 	cost pupil unitformula allowance for that year and the district's referendum revenue per 
7.8 	resident marginal cost pupil unit. A school district's revenue under this paragraph must 
7.9 	not exceed $100,000 for that year.
7.10 	(e) A school district's equity revenue for a school district located in the metro equity 
7.11 	region equals the amount computed in paragraphs (b), (c), and (d) multiplied by 1.25.
7.12 	(f) For fiscal year 20072008 and later, notwithstanding paragraph (a), clause (2), a 
7.13 	school district that has per pupil referendum revenue below the 95th percentilequalifies 
7.14 	for equity revenue under paragraph (a), clause (1), qualifies for additional equity revenue 
7.15 	equal to $46 times its adjusted marginal cost pupil unit units.
7.16 	(g) A district that does not qualify for revenue under paragraph (f) qualifies for 
7.17 	equity revenue equal to one-half of the per pupil allowance in paragraph (f) $46 times its 
7.18 	adjusted marginal cost pupil units.

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

7.20 	Sec. 12. Minnesota Statutes 2006, section 126C.10, subdivision 26, is amended to read:
7.21 		Subd. 26.District equity gap. A district's equity gap equals the greater of zero or 
7.22 	the difference between the district's adjusted general revenue and the value of the school 
7.23 	district at or immediately above the regional 95th percentile of adjusted general revenue 
7.24 	per adjusted27 percent of the formula allowance and the sum of the district's equity 
7.25 	revenue per resident marginal cost pupil unit according to subdivision 24, paragraph 
7.26 	(d), and district's referendum revenue per resident marginal cost pupil unit according 
7.27 	to section 126C.17.

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

7.29 	Sec. 13. Minnesota Statutes 2006, section 126C.10, subdivision 27, is amended to read:
7.30 		Subd. 27.District equity index. A district's equity index equals the ratio of the 
7.31 	sum of the district equity gap amount to the regional equity gap amount 27 percent of the 
7.32 	formula allowance.

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

8.1 	Sec. 14. Minnesota Statutes 2006, section 126C.10, subdivision 29, is amended to read:
8.2 		Subd. 29.Equity levy. To obtain equity revenue for fiscal year 2005 years 2007 and 
8.3 	later 2008, a district may levy an amount not more than the product of its equity revenue 
8.4 	for the fiscal year times the lesser of one or the ratio of its referendum market value per 
8.5 	resident marginal cost pupil unit to $476,000.

8.6 	Sec. 15. Minnesota Statutes 2006, section 126C.10, subdivision 30, is amended to read:
8.7 		Subd. 30.Equity aid. For fiscal years 2007 and 2008, a district's equity aid equals 
8.8 	its equity revenue minus its equity levy times the ratio of the actual amount levied to 
8.9 	the permitted levy.

8.10 	Sec. 16. Minnesota Statutes 2006, section 126C.10, subdivision 31, is amended to read:
8.11 		Subd. 31.Transition revenue. (a) A district's transition allowance equals the 
8.12 	greater of zero or the product of the ratio of the number of adjusted marginal cost pupil 
8.13 	units the district would have counted for fiscal year 2004 under Minnesota Statutes 2002 
8.14 	to the district's adjusted marginal cost pupil units for fiscal year 2004, times the difference 
8.15 	between: (1) the lesser of the district's general education revenue per adjusted marginal 
8.16 	cost pupil unit for fiscal year 2003 or the amount of general education revenue the district 
8.17 	would have received per adjusted marginal cost pupil unit for fiscal year 2004 according 
8.18 	to Minnesota Statutes 2002, and (2) the district's general education revenue for fiscal year 
8.19 	2004 excluding transition revenue divided by the number of adjusted marginal cost pupil 
8.20 	units the district would have counted for fiscal year 2004 under Minnesota Statutes 2002.
8.21 	(b) A district's transition revenue for fiscal year 20062008 and later equals the 
8.22 	sum of (1) the product of the district's transition allowance times the district's adjusted 
8.23 	marginal cost pupil units plus (2) the district's transition for prekindergarten revenue under 
8.24 	subdivision 31a plus (3) the product of the district's transition equity allowance under 
8.25 	subdivision 31c times the district's adjusted marginal cost pupil units.

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

8.27 	Sec. 17. Minnesota Statutes 2006, section 126C.10, is amended by adding a 
8.28 	subdivision to read:
8.29 		Subd. 31c.Transition equity allowance. For fiscal year 2008 and later, a district's 
8.30 	transitional equity allowance equals the greater of zero or the difference between the 
8.31 	equity revenue the district would have received for fiscal year 2008 under Minnesota 
8.32 	Statutes 2006, section 126C.10, subdivision 24, and the district's equity revenue for fiscal 
8.33 	year 2008, divided by the district's adjusted marginal cost pupil units for fiscal year 2008.

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

9.2 	Sec. 18. Minnesota Statutes 2006, section 126C.10, subdivision 32, is amended to read:
9.3 		Subd. 32.Transition levy. To obtain transition revenue for fiscal year 2005years 
9.4 	2007 and later 2008, a district may levy an amount not more than the product of its 
9.5 	transition revenue for the fiscal year times the lesser of one or the ratio of its referendum 
9.6 	market value per resident marginal cost pupil unit to $476,000.

9.7 	Sec. 19. Minnesota Statutes 2006, section 126C.10, subdivision 33, is amended to read:
9.8 		Subd. 33.Transition aid. (a) For fiscal year 2004, a district's transition aid equals 
9.9 	its transition revenue.
9.10 	(b) For fiscal year 2005 years 2007 and later 2008, a district's transition aid equals its 
9.11 	transition revenue minus its transition levy times the ratio of the actual amount levied to 
9.12 	the permitted levy.

9.13 	Sec. 20. Minnesota Statutes 2006, section 126C.10, subdivision 34, is amended to read:
9.14 		Subd. 34.Basic alternative teacher compensation aid. (a) For fiscal year 2006, 
9.15 	the basic alternative teacher compensation aid for a school district or an intermediate 
9.16 	school district with a plan approved under section 122A.414, subdivision 2b, equals the 
9.17 	alternative teacher compensation revenue under section 122A.415, subdivision 1. The 
9.18 	basic alternative teacher compensation aid for a charter school with an approved plan 
9.19 	under section 122A.414, subdivision 2b, equals $260 times the number of pupils enrolled 
9.20 	in the school on October 1 of the previous school year, or on October 1 of the current 
9.21 	fiscal year for a charter school in the first year of operation.
9.22 	(b) For fiscal yearyears 2007 and later 2008, the basic alternative teacher 
9.23 	compensation aid for a school district with a plan approved under section 122A.414, 
9.24 	subdivision 2b, equals 73.1 percent of the alternative teacher compensation revenue 
9.25 	under section 122A.415, subdivision 1. The basic alternative teacher compensation aid 
9.26 	for an intermediate school district or charter school with a plan approved under section 
9.27 	122A.414, subdivisions 2a and 2b, if the recipient is a charter school, equals $260 times 
9.28 	the number of pupils enrolled in the school on October 1 of the previous fiscal year, or on 
9.29 	October 1 of the current fiscal year for a charter school in the first year of operation, times 
9.30 	the ratio of the sum of the alternative teacher compensation aid and alternative teacher 
9.31 	compensation levy for all participating school districts to the maximum alternative teacher 
9.32 	compensation revenue for those districts under section 122A.415, subdivision 1.
10.1 	(c)(b) Notwithstanding paragraphs (a) and (b) and section 122A.415, subdivision 
10.2 	1, the state total basic alternative teacher compensation aid entitlement must not exceed 
10.3 	$19,329,000 for fiscal year 2006 and $75,636,000 for fiscal year 2007 and later and 
10.4 	$44,159,000 for fiscal year 2008. The commissioner must limit the amount of alternative 
10.5 	teacher compensation aid approved under section 122A.415 so as not to exceed these 
10.6 	limits.

10.7 	Sec. 21. Minnesota Statutes 2006, section 126C.10, subdivision 35, is amended to read:
10.8 		Subd. 35.Alternative teacher compensation levy. For fiscal yearyears 2007 
10.9 	and later 2008, the alternative teacher compensation levy for a district receiving basic 
10.10 	alternative teacher compensation aid equals the product of (1) the difference between the 
10.11 	district's alternative teacher compensation revenue and the district's basic alternative 
10.12 	teacher compensation aid times (2) the lesser of one or the ratio of the district's adjusted 
10.13 	net tax capacity per adjusted pupil unit to $5,913.

10.14 	Sec. 22. Minnesota Statutes 2006, section 126C.10, subdivision 36, is amended to read:
10.15 		Subd. 36.Alternative teacher compensation aid. (a) For fiscal yearyears 2007 
10.16 	and later 2008, a district's alternative teacher compensation equalization aid equals the 
10.17 	district's alternative teacher compensation revenue minus the district's basic alternative 
10.18 	teacher compensation aid minus the district's alternative teacher compensation levy. If a 
10.19 	district does not levy the entire amount permitted, the alternative teacher compensation 
10.20 	equalization aid must be reduced in proportion to the actual amount levied.
10.21 	(b) A district's alternative teacher compensation aid equals the sum of the 
10.22 	district's basic alternative teacher compensation aid and the district's alternative teacher 
10.23 	compensation equalization aid.

10.24 	Sec. 23. Minnesota Statutes 2006, section 126C.13, is amended by adding a 
10.25 	subdivision to read:
10.26 		Subd. 3a.Consolidated tax rate. The commissioner must establish the consolidated 
10.27 	tax rate by July 1 of each year for levies payable in the following year. The consolidated 
10.28 	tax capacity rate must be a rate, rounded up to the nearest hundredth of a percent, that, 
10.29 	when applied to the adjusted net tax capacity for all districts, raises the amount specified 
10.30 	in this subdivision. The consolidated tax rate must be the rate that raises $119,245,000 
10.31 	for fiscal year 2009, $134,728,000 for fiscal year 2010, and $148,667,000 for fiscal year 
10.32 	2011 and later years. The consolidated tax rate may not be changed due to changes 
10.33 	or corrections made to a district's adjusted net tax capacity after the tax rate has been 
11.1 	established. A school district may adopt a board resolution to reduce its levy below the 
11.2 	amount calculated according to this subdivision.

11.3 	Sec. 24. Minnesota Statutes 2006, section 126C.13, is amended by adding a 
11.4 	subdivision to read:
11.5 		Subd. 3b.Consolidated levy. To obtain general education revenue, a district may 
11.6 	levy an amount not to exceed the consolidated tax rate times the adjusted net tax capacity 
11.7 	of the district for the preceding year. If the amount of the consolidated levy would exceed 
11.8 	the general education revenue, the consolidated levy must be determined according 
11.9 	to subdivision 3c. If a district adopts a board resolution to reduce its consolidated 
11.10 	levy, according to subdivision 3a, the district's general education aid shall be reduced 
11.11 	proportionately.

11.12 	Sec. 25. Minnesota Statutes 2006, section 126C.13, is amended by adding a 
11.13 	subdivision to read:
11.14 		Subd. 3c.Consolidated levy; districts off the formula. If the amount of the 
11.15 	consolidated levy for a district exceeds the district's general education revenue, the amount 
11.16 	of the consolidated levy must be limited to the following:
11.17 	(1) the district's general education revenue; minus 
11.18 	(2) payments made for the same school year according to section 126C.21, 
11.19 	subdivision 3. 
11.20 	For the purposes of statutory cross-reference, a levy made according to this subdivision 
11.21 	shall be construed to be the levy made according to subdivision 3b.

11.22 	Sec. 26. Minnesota Statutes 2006, section 126C.13, subdivision 4, is amended to read:
11.23 		Subd. 4.General education aid. (a) For fiscal year 2006, a district's general 
11.24 	education aid is the sum of the following amounts:
11.25 	(1) general education revenue, excluding equity revenue, total operating capital, and 
11.26 	transition revenue;
11.27 	(2) operating capital aid according to section 126C.10, subdivision 13b;
11.28 	(3) equity aid according to section 126C.10, subdivision 30;
11.29 	(4) transition aid according to section 126C.10, subdivision 33;
11.30 	(5) shared time aid according to section 126C.01, subdivision 7;
11.31 	(6) referendum aid according to section 126C.17; and
11.32 	(7) online learning aid according to section 124D.096.
12.1 	(b) For fiscal yearyears 2007 and later 2008, a district's general education aid is the 
12.2 	sum of the following amounts:
12.3 	(1) general education revenue, excluding equity revenue, total operating capital 
12.4 	revenue, alternative teacher compensation revenue, and transition revenue;
12.5 	(2) operating capital aid under section 126C.10, subdivision 13b;
12.6 	(3) equity aid under section 126C.10, subdivision 30;
12.7 	(4) alternative teacher compensation aid under section 126C.10, subdivision 36;
12.8 	(5) transition aid under section 126C.10, subdivision 33;
12.9 	(6) shared time aid under section 126C.01, subdivision 7;
12.10 	(7) referendum aid under section 126C.17, subdivisions 7 and 7a; and
12.11 	(8) online learning aid according to section 124D.096.
12.12 	(b) For fiscal year 2009 and later, a district's general education aid is the sum of 
12.13 	the following amounts:
12.14 	(1) the product of:
12.15 	(i) the difference between the general education revenue and the consolidated levy; 
12.16 	times
12.17 	(ii) the ratio of the actual amount levied to the permitted levy;
12.18 	(2) shared time aid according to section 126C.01, subdivision 7; 
12.19 	(3) referendum aid according to section 126C.17, subdivisions 7 and 7a; and
12.20 	(4) online learning aid according to section 124D.096.

12.21 	Sec. 27. Minnesota Statutes 2006, section 126C.21, subdivision 3, is amended to read:
12.22 		Subd. 3.County apportionment deduction. Each year the amount of money 
12.23 	apportioned to a district for that year pursuant to section sections127A.34, subdivision 2, 
12.24 	and 272.029, subdivision 6, must be deducted from the general education aid earned by 
12.25 	that district for the same year or from aid earned from other state sources. 

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

12.27 	Sec. 28. Minnesota Statutes 2006, section 126C.21, subdivision 5, is amended to read:
12.28 		Subd. 5.Adjustment for failure to meet federal maintenance of effort. (a) The 
12.29 	general education aid paid to a school district or charter school that failed to meet federal 
12.30 	special education maintenance of effort for the previous fiscal year must be reduced by the 
12.31 	amount that must be paid to the federal government due to the shortfall. 
12.32 	(b) The general education aid paid to school districts that were members of a 
12.33 	cooperative that failed to meet federal special education maintenance of effort must be 
12.34 	reduced by the amount that must be paid to the federal government due to the shortfall. 
13.1 	The commissioner must apportion the aid reduction amount the member school districts 
13.2 	based on each district's individual shortfall in maintaining effort, and on each member 
13.3 	district's proportionate share of any shortfall in expenditures made by the cooperative. 
13.4 	Each district's proportionate share of shortfall in expenditures made by the cooperative 
13.5 	must be calculated using the adjusted marginal pupil units of each member school district.
13.6 	(c) The amounts recovered under this subdivision shall be paid to the federal 
13.7 	government to meet the state's obligations resulting from the district's or, charter school's, 
13.8 	or cooperative's failure to meet federal special education maintenance of effort.

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

13.10 	Sec. 29. Minnesota Statutes 2006, section 126C.41, subdivision 2, is amended to read:
13.11 		Subd. 2.Retired employee health benefits. A district may levy an amount up 
13.12 	to the amount the district is required by the collective bargaining agreement in effect 
13.13 	on March 30, 1992, to pay for health insurance or unreimbursed medical expenses for 
13.14 	licensed and nonlicensed employees who have terminated services in the employing 
13.15 	district and withdrawn from active teaching service or other active service, as applicable, 
13.16 	before July 1, 1992, or July 1, 1998, if a sunset clause is in effect for the current collective 
13.17 	bargaining agreement. The total amount of the levy each year may not exceed $600,000.

13.18 	EFFECTIVE DATE. This section is effective for taxes payable 2009 to 2013.

13.19 	Sec. 30. Minnesota Statutes 2006, section 126C.44, is amended to read:
13.20 	126C.44 SAFE SCHOOLS LEVY.
13.21 	(a) Each district may make a levy on all taxable property located within the district 
13.22 	for the purposes specified in this section. The maximum amount which may be levied 
13.23 	for all costs under this section shall be equal to $27 multiplied by the district's adjusted 
13.24 	marginal cost pupil units for the school year. The proceeds of the levy must be reserved 
13.25 	and used for directly funding the following purposes or for reimbursing the cities and 
13.26 	counties who contract with the district for the following purposes: (1) to pay the costs 
13.27 	incurred for the salaries, benefits, and transportation costs of peace officers and sheriffs for 
13.28 	liaison in services in the district's schools; (2) to pay the costs for a drug abuse prevention 
13.29 	program as defined in section 609.101, subdivision 3, paragraph (e), in the elementary 
13.30 	schools; (3) to pay the costs for a gang resistance education training curriculum in the 
13.31 	district's schools; (4) to pay the costs for security in the district's schools and on school 
13.32 	property; or (5) to pay the costs for other crime prevention, drug abuse, student and staff 
13.33 	safety, and violence prevention measures taken by the school district. For expenditures 
14.1 	under clause (1), the district must initially attempt to contract for services to be provided 
14.2 	by peace officers or sheriffs with the police department of each city or the sheriff's 
14.3 	department of the county within the district containing the school receiving the services. If 
14.4 	a local police department or a county sheriff's department does not wish to provide the 
14.5 	necessary services, the district may contract for these services with any other police or 
14.6 	sheriff's department located entirely or partially within the school district's boundaries. 
14.7 	(b) A school district that is a member of an intermediate school district may 
14.8 	include in its authority under this section the costs associated with safe schools activities 
14.9 	authorized under paragraph (a) for intermediate school district programs. This authority 
14.10 	must not exceed $10 times the adjusted marginal cost pupil units of the member districts. 
14.11 	This authority is in addition to any other authority authorized under this section. Revenue 
14.12 	raised under this paragraph must be transferred to the intermediate school district.

14.13 	EFFECTIVE DATE. This section is effective for taxes payable in 2008 and 
14.14 	thereafter.

14.15 	Sec. 31. Minnesota Statutes 2006, section 127A.441, is amended to read:
14.16 	127A.441 AID REDUCTION; LEVY REVENUE RECOGNITION CHANGE.
14.17 	Each year, the state aids payable to any school district for that fiscal year that are 
14.18 	recognized as revenue in the school district's general and community service funds shall 
14.19 	be adjusted by an amount equal to (1) the amount the district recognized as revenue for the 
14.20 	prior fiscal year pursuant to section 123B.75, subdivision 5, paragraph (b) or (c), minus (2) 
14.21 	the amount the district recognized as revenue for the current fiscal year pursuant to section 
14.22 	123B.75, subdivision 5, paragraph (c) (b). For purposes of making the aid adjustments 
14.23 	under this section, the amount the district recognizes as revenue for either the prior fiscal 
14.24 	year or the current fiscal year pursuant to section 123B.75, subdivision 5, paragraph (b) 
14.25 	or (c), shall not include any amount levied pursuant to section 124D.86, subdivision 4, 
14.26 	for school districts receiving revenue under sections 124D.86, subdivision 3, clauses (1), 
14.27 	(2), and (3); 126C.41, subdivisions 1, 2, and 3, paragraphs (b), (c), and (d); 126C.43, 
14.28 	subdivision 2; 126C.457; and 126C.48, subdivision 6. Payment from the permanent 
14.29 	school fund shall not be adjusted pursuant to this section. The school district shall be 
14.30 	notified of the amount of the adjustment made to each payment pursuant to this section. 

14.31 	Sec. 32. Minnesota Statutes 2006, section 127A.47, subdivision 8, is amended to read:
15.1 		Subd. 8.Charter schools. (a) The general education aid for districts must be 
15.2 	adjusted for each pupil attending a charter school under section 124D.10. The adjustments 
15.3 	must be made according to this subdivision.
15.4 	(b) General education aid paid to a district in which a charter school not providing 
15.5 	transportation according to section 124D.10, subdivision 16, is located must be increased 
15.6 	by an amount equal to the sum of:
15.7 	(1) the product of: (i) the sum of an amount equal to the product of the formula 
15.8 	allowance according to section 126C.10, subdivision 2, times .0485 .0416, plus the 
15.9 	transportation sparsity allowance for the district; times (ii) the adjusted marginal cost 
15.10 	pupil units attributable to the pupil; plus
15.11 	(2) the product of $223 andfor fiscal year 2007 and $191 for fiscal year 2008 and 
15.12 	later times the extended time marginal cost pupil units attributable to the pupil.

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

15.14 	Sec. 33. Minnesota Statutes 2006, section 127A.49, subdivision 2, is amended to read:
15.15 		Subd. 2.Abatements. Whenever by virtue of chapter 278, sections 270C.86,
15.16 	section 375.192, or otherwise, the net tax capacity or referendum market value of any 
15.17 	district for any taxable year is changed after the taxes for that year have been spread by 
15.18 	the county auditor and the local tax rate as determined by the county auditor based upon 
15.19 	the original net tax capacity is applied upon the changed net tax capacities, the county 
15.20 	auditor shall, prior to February 1 of each year, certify to the commissioner of education the 
15.21 	amount of any resulting net revenue loss that accrued to the district during the preceding 
15.22 	year. Each year, the commissioner shall pay an abatement adjustment to the district in an 
15.23 	amount calculated according to the provisions of this subdivision. This amount shall be 
15.24 	deducted from the amount of the levy authorized by section 126C.46. The amount of the 
15.25 	abatement adjustment must be the product of:
15.26 	(1) the net revenue loss as certified by the county auditor, times
15.27 	(2) the ratio of:
15.28 	(i) the sum of the amounts of the district's certified levy in the third preceding year 
15.29 	according to the following:
15.30 	(A) section 123B.57, if the district received health and safety aid according to that 
15.31 	section for the second preceding year;
15.32 	(B) section 124D.20, if the district received aid for community education programs 
15.33 	according to that section for the second preceding year;
15.34 	(C) section 124D.135, subdivision 3, if the district received early childhood family 
15.35 	education aid according to section 124D.135 for the second preceding year; and
16.1 	(D) section 126C.17, subdivision 6, if the district received referendum equalization 
16.2 	aid according to that section for the second preceding year; 
16.3 	(E) section 126C.13, if the district received general education aid in the second 
16.4 	preceding year, minus referendum equalization levy according to section 126C.17, 
16.5 	subdivision 6, if the district received referendum equalization aid according to that section 
16.6 	in the second preceding year;
16.7 	(F) section 126C.10, subdivision 13a, if the district received operating capital aid 
16.8 	according to section 126C.10, subdivision 13b, in the second preceding year;
16.9 	(G) section 126C.10, subdivision 29, if the district received equity aid according to 
16.10 	section 126C.10, subdivision 30, in the second preceding year;
16.11 	(H) section 126C.10, subdivision 32, if the district received transition aid according 
16.12 	to section 126C.10, subdivision 33, in the second preceding year;
16.13 	(I) section 123B.53, subdivision 5, if the district received debt service equalization 
16.14 	aid according to section 123B.53, subdivision 6, in the second preceding year;
16.15 	(J) section 124D.22, subdivision 3, if the district received school-age care aid 
16.16 	according to section 124D.22, subdivision 4, in the second preceding year;
16.17 	(K) section 123B.591, subdivision 3, if the district received deferred maintenance 
16.18 	aid according to section 123B.591, subdivision 4, in the second preceding year; and
16.19 	(L) section 126C.10, subdivision 35, if the district received alternative teacher 
16.20 	compensation equalization aid according to section 126C.10, subdivision 36, paragraph 
16.21 	(a), in the second preceding year, or section 122A.415, subdivision 5, if the district 
16.22 	received alternative compensation equalization aid according to section 122A.415, 
16.23 	subdivision 6, in the second preceding year; to
16.24 	(ii) the total amount of the district's certified levy in the third preceding December, 
16.25 	plus or minus auditor's adjustments.

16.26 	Sec. 34. Minnesota Statutes 2006, section 127A.49, subdivision 3, is amended to read:
16.27 		Subd. 3.Excess tax increment. (a) If a return of excess tax increment is made to a 
16.28 	district pursuant to sections 469.176, subdivision 2, and 469.177, subdivision 9, or upon 
16.29 	decertification of a tax increment district, the school district's aid and levy limitations 
16.30 	must be adjusted for the fiscal year in which the excess tax increment is paid under the 
16.31 	provisions of this subdivision.
16.32 	(b) An amount must be subtracted from the district's aid for the current fiscal year 
16.33 	equal to the product of:
16.34 	(1) the amount of the payment of excess tax increment to the district, times
16.35 	(2) the ratio of:
17.1 	(i) the sum of the amounts of the district's certified levy for the fiscal year in which 
17.2 	the excess tax increment is paid according to the following:
17.3 	(A) section 123B.57, if the district received health and safety aid according to that 
17.4 	section for the second preceding year;
17.5 	(B) section 124D.20, if the district received aid for community education programs 
17.6 	according to that section for the second preceding year;
17.7 	(C) section 124D.135, subdivision 3, if the district received early childhood family 
17.8 	education aid according to section 124D.135 for the second preceding year; and
17.9 	(D) section 126C.17, subdivision 6, if the district received referendum equalization 
17.10 	aid according to that section for the second preceding year; 
17.11 	(E) section 126C.13, if the district received general education aid in the second 
17.12 	preceding year, minus referendum equalization levy according to section 126C.17, 
17.13 	subdivision 6, if the district received referendum equalization aid according to that section 
17.14 	in the second preceding year;
17.15 	(F) section 126C.10, subdivision 13a, if the district received operating capital aid 
17.16 	according to section 126C.10, subdivision 13b, in the second preceding year;
17.17 	(G) section 126C.10, subdivision 29, if the district received equity aid according to 
17.18 	section 126C.10, subdivision 30, in the second preceding year;
17.19 	(H) section 126C.10, subdivision 32, if the district received transition aid according 
17.20 	to section 126C.10, subdivision 33, in the second preceding year;
17.21 	(I) section 123B.53, subdivision 5, if the district received debt service equalization 
17.22 	aid according to section 123B.53, subdivision 6, in the second preceding year;
17.23 	(J) section 124D.22, subdivision 3, if the district received school-age care aid 
17.24 	according to section 124D.22, subdivision 4, in the second preceding year;
17.25 	(K) section 123B.591, subdivision 3, if the district received deferred maintenance 
17.26 	aid according to section 123B.591, subdivision 4, in the second preceding year; and
17.27 	(L) section 126C.10, subdivision 35, if the district received alternative teacher 
17.28 	compensation equalization aid according to section 126C.10, subdivision 36, paragraph 
17.29 	(a), in the second preceding year, or section 122A.415, subdivision 5, if the district 
17.30 	received alternative compensation equalization aid according to section 122A.415, 
17.31 	subdivision 6, in the second preceding year; to
17.32 	(ii) the total amount of the district's certified levy for the fiscal year, plus or minus 
17.33 	auditor's adjustments.
17.34 	(c) An amount must be subtracted from the school district's levy limitation for the 
17.35 	next levy certified equal to the difference between:
17.36 	(1) the amount of the distribution of excess increment; and
18.1 	(2) the amount subtracted from aid pursuant to clause (a).
18.2 	If the aid and levy reductions required by this subdivision cannot be made to the aid 
18.3 	for the fiscal year specified or to the levy specified, the reductions must be made from 
18.4 	aid for subsequent fiscal years, and from subsequent levies. The school district must use 
18.5 	the payment of excess tax increment to replace the aid and levy revenue reduced under 
18.6 	this subdivision.
18.7 	(d) This subdivision applies only to the total amount of excess increments received 
18.8 	by a district for a calendar year that exceeds $25,000.

18.9 	Sec. 35. Minnesota Statutes 2006, section 272.029, is amended by adding a subdivision 
18.10 	to read:
18.11 		Subd. 6a.Report to commissioner of education. The county auditor, on the first 
18.12 	Wednesday after such settlement, shall report to the commissioner the amount distributed 
18.13 	to each school district under subdivision 6.

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

18.16 	Sec. 36. Laws 2006, chapter 282, article 3, section 4, subdivision 2, is amended to read:
18.17 		Subd. 2.Onetime energy assistance aid. For onetime energy assistance aid under 
18.18 	section 3:

18.19
18.20		$
	3,495,000
	.....
	2007
2006

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

18.22 	Sec. 37. LIMITATION ON NEW ALTERNATIVE COMPENSATION SCHOOL 
18.23 	DISTRICTS, FISCAL YEARS 2008-2011.
 18.24 	Notwithstanding Minnesota Statutes, sections 122A.413; 122A.414; 122A.415; 
18.25 	122A.416; and 126C.10, subdivisions 34, 35, and 36, the Department of Education must 
18.26 	limit the participation in the alternative teacher pay program to those district sites and 
18.27 	charter schools that received alternative compensation revenue in fiscal year 2007 or those 
18.28 	district sites and charter schools that have an approved plan, under Minnesota Statutes, 
18.29 	section 122A.414, by March 10, 2007, for fiscal year 2008 alternative compensation 
18.30 	participation. This limitation applies to fiscal year 2008 through fiscal year 2011. No 
18.31 	additional district sites or charter schools may be approved until after June 30, 2012.

19.1 	Sec. 38. CONSOLIDATED LEVY ADJUSTMENT.
 19.2 	(a) For taxes payable in 2008 only, a school district whose consolidated levy, as 
19.3 	computed by the commissioner under Minnesota Statutes, section 126C.13, subdivision 
19.4 	3a, is greater than the sum of the district's equity, transition, and operating capital levies 
19.5 	that the districts would have levied for taxes payable in 2008 under Minnesota Statutes 
19.6 	2006, section 126C.10, subdivisions 13a, 29, and 32, based on the February 2007 forecast, 
19.7 	shall be eligible for a consolidated levy adjustment. An eligible district's consolidated levy 
19.8 	adjustment shall be equal to the difference to the district's consolidated levy computed by 
19.9 	the commissioner according to Minnesota Statutes, section 126C.13, subdivision 3a, minus 
19.10 	the sum of the district's equity, transition, and operating capital levies that districts would 
19.11 	have levied for taxes payable in 2008 under Minnesota Statutes 2006, section 126C.10, 
19.12 	subdivisions 13a, 29, and 32, as computed according to the February 2007 forecast.
19.13 	(b) Notwithstanding Minnesota Statutes, section 126C.13, subdivision 3a, for 
19.14 	fiscal year 2009 only, the commissioner of education shall reduce an eligible district's 
19.15 	consolidated levy by the amount of an eligible district's consolidated levy adjustment. 
19.16 	The commissioner shall increase an eligible district's general education state aid under 
19.17 	Minnesota Statutes, section 126C.13, subdivision 4, by the amount of the consolidated 
19.18 	levy adjustment.

19.19 	Sec. 39. EDUCATION IMPROVEMENT ACCOUNT.
 19.20 	The commissioner of finance shall cancel $78,000,000 in fiscal year 2009 and 
19.21 	$83,334,000 in fiscal year 2010 and in each fiscal year thereafter from the education 
19.22 	improvement account in the general fund to the general fund.

19.23 	Sec. 40. BROWNS VALLEY FISCAL YEAR 2007 PUPIL UNITS.
 19.24 	Notwithstanding Minnesota Statutes, section 126C.05, the fiscal year 2007 
19.25 	kindergarten through grade 8 average daily membership for Independent School District 
19.26 	No. 801, Browns Valley, shall be the greater of the amount that would have been computed 
19.27 	if the district's school building had not reopened after the flood of March 14, 2007, or the 
19.28 	amount computed using actual data for the entire school year.

19.29 	Sec. 41. FISCAL YEARS 2008 AND 2009 DECLINING PUPIL UNIT AID, 
19.30 	BROWNS VALLEY.
 19.31 	For fiscal years 2008 and 2009 only, Independent School District No. 801, Browns 
19.32 	Valley, is eligible for declining pupil unit aid equal to the greater of zero or the product 
19.33 	of the general education formula allowance times the difference between the district's 
20.1 	adjusted marginal cost pupil units attributable to kindergarten through grade 8 for fiscal 
20.2 	year 2007 and the district's adjusted marginal cost pupil units attributable to kindergarten 
20.3 	through grade 8 for that fiscal year. Notwithstanding Minnesota Statutes, section 126C.13, 
20.4 	the declining pupil unit aid must be included in calculating the district's general education 
20.5 	aid.

20.6 	Sec. 42. FISCAL YEARS 2008 AND 2009 DECLINING PUPIL UNIT AID, 
20.7 	RED LAKE.
 20.8 	For fiscal years 2008 and 2009 only, Independent School District No. 38, Red Lake, 
20.9 	is eligible for declining pupil unit aid equal to the greater of zero or the product of $4,974 
20.10 	times the difference between the district's adjusted marginal cost pupil units for fiscal year 
20.11 	2005 and the district's adjusted marginal cost pupil units for that fiscal year times .75. 
20.12 	Notwithstanding Minnesota Statutes, section 126C.13, the declining pupil unit aid must be 
20.13 	included in calculating the district's general education aid.

20.14 	Sec. 43. SCHOOL FINANCE STUDY.
 20.15 	The commissioner of education must contract with an independent contractor that 
20.16 	has extensive experience working with various states on education finance systems to 
20.17 	continue and complete the work begun by P.S. Minnesota. The contractor, in consultation 
20.18 	with the Department of Education and P.S. Minnesota, must recommend a rationally 
20.19 	based education finance system that is adequately funded and addresses the unique 
20.20 	circumstances of individual districts. The contractor shall build upon the work of the 
20.21 	governor's Education Finance Task Force and that of APA and Associates. The contractor, 
20.22 	Department of Education, and P.S. Minnesota must report to the education finance 
20.23 	committees of the legislature by January 15, 2008.

20.24 	Sec. 44. APPROPRIATIONS.
 20.25 		Subdivision 1.Department of Education. The sums indicated in this section are 
20.26 	appropriated from the general fund to the Department of Education for the fiscal years 
20.27 	designated.
20.28 		Subd. 2.General education aid. For general education aid under Minnesota 
20.29 	Statutes, section 126C.13, subdivision 4:

20.30		$
	5,465,539,000
	.....
	2008
	
20.31		$
	5,467,878,000
	.....
	2009
	
21.1 	The 2008 appropriation includes $531,733,000 for 2007 and $4,933,806,000 for 
21.2 	2008.
21.3 	The 2009 appropriation includes $548,200,000 for 2008 and $4,919,678,000 for 
21.4 	2009.
21.5 	 The fiscal year 2009 appropriation includes $75,000,000 attributable to the education 
21.6 	improvement account in the general fund.
21.7 		Subd. 3.Referendum tax base replacement aid. For referendum tax base 
21.8 	replacement aid under Minnesota Statutes, section 126C.17, subdivision 7a:

21.9		$
	870,000
	.....
	2008
	
21.10 	The 2008 appropriation includes $870,000 for 2007 and $0 for 2008.
21.11 		Subd. 4.Enrollment options transportation. For transportation of pupils attending 
21.12 	postsecondary institutions under Minnesota Statutes, section 124D.09, or for transportation 
21.13 	of pupils attending nonresident districts under Minnesota Statutes, section 124D.03:

21.14		$
	95,000
	.....
	2008
	
21.15		$
	97,000
	.....
	2009
	
21.16 		Subd. 5.Abatement revenue. For abatement aid under Minnesota Statutes, section 
21.17 	127A.49:

21.18		$
	1,343,000
	.....
	2008
	
21.19		$
	1,347,000
	.....
	2009
	
21.20 	The 2008 appropriation includes $76,000 for 2007 and $1,267,000 for 2008.
21.21 	The 2009 appropriation includes $140,000 for 2008 and $1,207,000 for 2009.
21.22 		Subd. 6.Consolidation transition. For districts consolidating under Minnesota 
21.23 	Statutes, section 123A.485:

21.24		$
	565,000
	.....
	2008
	
21.25		$
	212,000
	.....
	2009
	
21.26 	The 2008 appropriation includes $43,000 for 2007 and $522,000 for 2008.
21.27 	The 2009 appropriation includes $57,000 for 2008 and $155,000 for 2009.
21.28 		Subd. 7.Nonpublic pupil education aid. For nonpublic pupil education aid under 
21.29 	Minnesota Statutes, sections 123B.40 to 123B.43, and 123B.87:

21.30		$
	16,174,000
	.....
	2008
	
21.31		$
	16,435,000
	.....
	2009
	
21.32 	The 2008 appropriation includes $1,606,000 for 2007 and $14,568,000 for 2008.
21.33 	The 2009 appropriation includes $1,618,000 for 2008 and $14,817,000 for 2009.
22.1 		Subd. 8.Nonpublic pupil transportation. For nonpublic pupil transportation aid 
22.2 	under Minnesota Statutes, section 123B.92, subdivision 9:

22.3		$
	21,167,000
	.....
	2008
	
22.4		$
	20,780,000
	.....
	2009
	
22.5 	The 2008 appropriation includes $2,124,000 for 2007 and $19,043,000 for 2008.
22.6 	The 2009 appropriation includes $2,115,000 for 2008 and $18,665,000 for 2009.
22.7 		Subd. 9.One-room schoolhouse. For a grant to Independent School District No. 
22.8 	690, Warroad, to operate the Angle Inlet School:

22.9		$
	65,000
	.....
	2008
	
22.10		$
	65,000
	.....
	2009
	
22.11 		Subd. 10.Compensatory revenue pilot project. For grants for participation in the 
22.12 	compensatory revenue pilot program under Laws 2005, First Special Session chapter 5, 
22.13 	article 1, section 50:

22.14		$
	2,100,000
	.....
	2008
	
22.15		$
	2,100,000
	.....
	2009
	
22.16 	Of this amount, $1,500,000 in each year is for a grant to Independent School District 
22.17 	No. 11, Anoka-Hennepin; $210,000 in each year is for a grant to Independent School 
22.18 	District No. 279, Osseo; $160,000 in each year is for a grant to Independent School 
22.19 	District No. 281, Robbinsdale; $165,000 in each year is for a grant to Independent School 
22.20 	District No. 535, Rochester; and $65,000 in each year is for a grant to Independent School 
22.21 	District No. 833, South Washington.
22.22 	If a grant to a specific school district is not awarded, the commissioner may increase 
22.23 	the aid amounts to any of the remaining participating school districts.
22.24 	This appropriation is part of the base budget for subsequent fiscal years.
22.25 		Subd. 11.Consolidated levy adjustment. For a consolidated levy adjustment 
22.26 	according to section 38:

22.27		$
	487,000
	.....
	2009
	
22.28 	This is a onetime appropriation.
22.29 		Subd. 12.Declining pupil unit aid; Browns Valley. For declining pupil unit aid 
22.30 	to Independent School District No. 801, Browns Valley:

22.31		$
	 9,000
	.....
	2007
	
22.32		$
	 55,000
	.....
	2008
	
22.33		$
	 60,000
	.....
	2009
	
23.1 	This is a onetime appropriation.
23.2 		Subd. 13.Education finance study. For a contract for the education finance 
23.3 	study under section 43:

23.4		$
	75,000
	.....
	2008
	
23.5 	This is a onetime appropriation.
23.6 		Subd. 14.Declining pupil aid, Red Lake. For a grant to Independent School 
23.7 	District No. 38, Red Lake, for declining pupil aid:

23.8		$
	455,000
	.....
	2008
	
23.9		$
	50,000
	.....
	2009

23.10 	EFFECTIVE DATE. Subdivision 12 is effective the day following final enactment.

23.11 	Sec. 45. REVISOR'S INSTRUCTION.
 23.12 	In Minnesota Statutes, the revisor of statutes shall correct any incorrect 
23.13 	cross-references resulting from the repeal of Minnesota Statutes, section 124D.06.

23.14 	Sec. 46.  REPEALER.
 23.15 	(a) Minnesota Statutes 2006, section 124D.06, is repealed.
23.16 	(b) Minnesota Statutes 2006, section 126C.10, subdivisions 13a, 13b, 29, 30, 32, 33, 
23.17 	34, 35, and 36, are repealed for revenue for fiscal year 2009.
23.18 	(c) Minnesota Statutes 2006, section 126C.10, subdivisions 25 and 28, are repealed 
23.19 	effective for fiscal year 2008 and thereafter.

23.20 	ARTICLE 2
23.21 	EDUCATION EXCELLENCE

23.22 	Section 1. Minnesota Statutes 2006, section 120A.22, subdivision 7, is amended to 
23.23 	read:
23.24 		Subd. 7.Education records. (a) A district or charter school from which a student 
23.25 	is transferring must transmit the student's educational records, within ten business days 
23.26 	of a request, to the district, charter school, or nonpublic school in which the student 
23.27 	is enrolling. Districts and charter schools must make reasonable efforts to determine 
23.28 	the district, charter school, or nonpublic school in which a transferring student is next 
23.29 	enrolling in order to comply with this subdivision.
23.30 	(b) A closed charter school must transfer the student's educational records, within 
23.31 	ten business days of the school's closure, to the student's school district of residence 
24.1 	where the records must be retained unless the records are otherwise transferred under 
24.2 	this subdivision.
24.3 	(c) A school district or charter school that transmits a student's educational records 
24.4 	to another school district or other educational entity, charter school, or nonpublic school
24.5 	to which the student is transferring must include in the transmitted records information 
24.6 	about any formal suspension, expulsion, and exclusion disciplinary action taken as a result 
24.7 	of any incident in which the student possessed or used a dangerous weapon under sections 
24.8 	121A.40 to 121A.56. The district or charter school must provide notice to a student and 
24.9 	the student's parent or guardian that formal disciplinary records will be transferred as 
24.10 	part of the student's educational record, in accordance with data practices under chapter 
24.11 	13 and the Family Educational Rights and Privacy Act of 1974, United States Code, 
24.12 	title 20, section 1232(g).
24.13 	(c) (d) Notwithstanding section 138.17, a principal or chief administrative officer 
24.14 	must remove from a student's educational record and destroy a probable cause notice 
24.15 	received under section 260B.171, subdivision 5, or paragraph (d), if one year has elapsed 
24.16 	since the date of the notice and the principal or chief administrative officer has not 
24.17 	received a disposition or court order related to the offense described in the notice. This 
24.18 	paragraph does not apply if the student no longer attends the school when this one-year 
24.19 	period expires. 
24.20 	(d) (e) A principal or chief administrative officer who receives a probable cause 
24.21 	notice under section 260B.171, subdivision 5, or a disposition or court order, must include 
24.22 	a copy of that data in the student's educational records if they are transmitted to another 
24.23 	school, unless the data are required to be destroyed under paragraph (c) or section 121A.75. 

24.24 	Sec. 2. Minnesota Statutes 2006, section 120B.024, is amended to read:
24.25 	120B.024 GRADUATION REQUIREMENTS; COURSE CREDITS.
24.26 	(a) Students beginning 9th grade in the 2004-2005 school year and later must 
24.27 	successfully complete the following high school level course credits for graduation:
24.28 	(1) four credits of language arts;
24.29 	(2) three credits of mathematics, encompassing at least algebra, geometry, statistics, 
24.30 	and probability sufficient to satisfy the academic standard;
24.31 	(3) three credits of science, including at least one credit in biology;
24.32 	(4) three and one-half credits of social studies, encompassing at least United 
24.33 	States history, geography, government and citizenship, world history, and economics or 
24.34 	three credits of social studies encompassing at least United States history, geography, 
25.1 	government and citizenship, and world history, and one-half credit of economics taught in 
25.2 	a school's social studies, agriculture education, or business department;
25.3 	(5) one credit in the arts; and
25.4 	(6) a minimum of seven elective course credits.
25.5 	A course credit is equivalent to a student successfully completing an academic 
25.6 	year of study or a student mastering the applicable subject matter, as determined by the 
25.7 	local school district.
25.8 	(b) An agriculture science course may fulfill a science credit requirement in addition 
25.9 	to the specified science credits in biology and chemistry or physics under paragraph (a), 
25.10 	clause (3).
25.11 	(c) A career and technical education course may fulfill a science, mathematics, or 
25.12 	arts credit requirement in addition to the specified science, mathematics, or arts credits 
25.13 	under paragraph (a), clause (2), (3), or (5).

25.14 	Sec. 3. Minnesota Statutes 2006, section 120B.12, subdivision 2, is amended to read:
25.15 		Subd. 2.Identification. For the 2002-2003 school year and later, each school 
25.16 	district shall identify before the end of first grade students who are at risk of not 
25.17 	learning to read before the end of second grade. The district must use a locally adopted 
25.18 	assessment method. The district must annually report the results of the assessment to the 
25.19 	commissioner by June 1.

25.20 	Sec. 4. Minnesota Statutes 2006, section 120B.132, is amended to read:
25.21 	120B.132 RAISED ACADEMIC ACHIEVEMENT; ADVANCED 
25.22 	PLACEMENT PROGRAMS.
25.23 		Subdivision 1.Establishment; eligibility. A program is established to raise 
25.24 	kindergarten through grade 12 academic achievement through increased student 
25.25 	participation in preadvanced placement and, advanced placement, and international 
25.26 	baccalaureate programs, consistent with section 120B.13. Schools and charter schools 
25.27 	eligible to participate under this section: 
25.28 	(1) must have a three-year plan approved by the local school board to create
25.29 	establish a new international baccalaureate program leading to international baccalaureate 
25.30 	authorization, or expand an existing program that leads to international baccalaureate 
25.31 	authorization, or expand an existing authorized international baccalaureate program; or
25.32 	(2) must have a three-year plan approved by the local school board to create a new or 
25.33 	expand an existing program to implement the college board advanced placement courses 
25.34 	and exams or preadvanced placement courses initiative; and 
26.1 	(2) (3) also must propose to further raise students' academic achievement by: 
26.2 	(i) increasing the availability of and all students' access to advanced placement or 
26.3 	international baccalaureate courses or programs; 
26.4 	(ii) expanding the breadth of advanced placement or international baccalaureate
26.5 	courses or programs that are available to students; 
26.6 	(iii) increasing the number and the diversity of the students who participate in 
26.7 	advanced placement or international baccalaureate courses or programs and succeed; 
26.8 	(iv) providing low-income and other disadvantaged students with increased access 
26.9 	to advanced placement or international baccalaureate courses and or programs; or 
26.10 	(v) increasing the number of high school students, including low-income and other 
26.11 	disadvantaged students, who receive college credit by successfully completing advanced 
26.12 	placement or international baccalaureate courses or programs and achieving satisfactory 
26.13 	scores on related exams.
26.14 		Subd. 2.Application and review process; funding priority. (a) Charter schools 
26.15 	and school districts in which eligible schools under subdivision 1 are located may 
26.16 	apply to the commissioner, in the form and manner the commissioner determines, for 
26.17 	competitive funding to further raise students' academic achievement. The application must 
26.18 	detail the specific efforts the applicant intends to undertake in further raising students' 
26.19 	academic achievement, consistent with subdivision 1, and a proposed budget detailing 
26.20 	the district or charter school's current and proposed expenditures for advanced placement 
26.21 	or, preadvanced placement, and international baccalaureate courses and programs. 
26.22 	The proposed budget must demonstrate that the applicant's efforts will supplement 
26.23 	but not supplant any expenditures forsupport implementation of advanced placement 
26.24 	and, preadvanced placement, and international baccalaureate courses and programs the 
26.25 	applicant currently makes available to students. Expenditures for administration must not 
26.26 	exceed five percent of the proposed budget. The commissioner may require an applicant 
26.27 	to provide additional information.
26.28 	(b) When reviewing applications, the commissioner must determine whether 
26.29 	the applicant satisfied all the requirements in this subdivision and subdivision 1. 
26.30 	The commissioner may give funding priority to an otherwise qualified applicant that 
26.31 	demonstrates:
26.32 	(1) a focus on developing or expanding advanced placement or international 
26.33 	baccalaureate courses and or programs or increasing students' participation in, access to, 
26.34 	or success with the courses or programs, including the participation, access, or success of 
26.35 	low-income and other disadvantaged students;
27.1 	(2) a compelling need for access to advanced placement or international 
27.2 	baccalaureate courses or programs;
27.3 	(3) an effective ability to actively involve local business and community 
27.4 	organizations in student activities that are integral to advanced placement or international 
27.5 	baccalaureate courses and or programs; 
27.6 	(4) access to additional public or nonpublic funds or in-kind contributions that are 
27.7 	available for advanced placement programs or international baccalaureate courses or 
27.8 	programs; or
27.9 	(5) an intent to implement activities that target low-income and other disadvantaged 
27.10 	students.
27.11 		Subd. 3.Funding; permissible funding uses. (a) The commissioner shall award 
27.12 	grants to applicant school districts and charter schools that meet the requirements of 
27.13 	subdivisions 1 and 2. The commissioner must award grants on an equitable geographical 
27.14 	basis to the extent feasible and consistent with this section. Grant awards must not exceed 
27.15 	the lesser of:
27.16 	(1) $85 times the number of pupils enrolled at the participating sites on October 
27.17 	1 of the previous fiscal year; or
27.18 	(2) the approved supplemental expenditures based on the budget submitted under 
27.19 	subdivision 2. For charter schools in their first year of operation, the maximum grant 
27.20 	award must be calculated using the number of pupils enrolled on October 1 of the current 
27.21 	fiscal year. The commissioner may adjust the maximum grant award computed using prior 
27.22 	year data for changes in enrollment attributable to school closings, school openings, 
27.23 	grade level reconfigurations, or school district reorganizations between the prior fiscal 
27.24 	year and the current fiscal year.
27.25 	(b) School districts and charter schools that submit an application and receive 
27.26 	funding under this section must use the funding, consistent with the application, to:
27.27 	(1) provide teacher training and instruction to more effectively serve students, 
27.28 	including low-income and other disadvantaged students, who participate in preadvanced 
27.29 	and, advanced placement, or international baccalaureate courses or programs;
27.30 	(2) further develop advanced placement or international baccalaureate courses or 
27.31 	programs;
27.32 	(3) improve the transition between grade levels to better prepare students, including 
27.33 	low-income and other disadvantaged students, for succeeding in advanced placement or 
27.34 	international baccalaureate courses or programs;
27.35 	(4) purchase books and supplies;
27.36 	(5) pay course or program fees;
28.1 	(6) increase students' participation in and success with advanced placement or 
28.2 	international baccalaureate courses or programs;
28.3 	(7) expand students' access to preadvanced placement or, advanced placement, or 
28.4 	international baccalaureate courses or programs through online learning;
28.5 	(8) hire appropriately licensed personnel to teach additional advanced placement or 
28.6 	international baccalaureate courses or programs; or
28.7 	(9) engage in other activity directly related to expanding students' access to, 
28.8 	participation in, and success with preadvanced placement or, advanced placement, or 
28.9 	international baccalaureate courses and or programs, including low-income and other 
28.10 	disadvantaged students.
28.11 		Subd. 4.Annual reports. (a) Each school district and charter school that receives 
28.12 	a grant under this section annually must collect demographic and other student data to 
28.13 	demonstrate and measure the extent to which the district or charter school raised students' 
28.14 	academic achievement under this program and must report the data to the commissioner 
28.15 	in the form and manner the commissioner determines. The commissioner annually by 
28.16 	February 15 must make summary data about this program available to the education 
28.17 	policy and finance committees of the legislature.
28.18 	(b) Each school district and charter school that receives a grant under this section 
28.19 	annually must report to the commissioner, consistent with the Uniform Financial 
28.20 	Accounting and Reporting Standards, its actual expenditures for advanced placement and,
28.21 	preadvanced placement, and international baccalaureate courses and programs. The report 
28.22 	must demonstrate that the school district or charter school has maintained its effort from 
28.23 	other sources for advanced placement and, preadvanced placement, and international 
28.24 	baccalaureate courses and programs compared with the previous fiscal year, and the 
28.25 	district or charter school has expended all grant funds, consistent with its approved budget.

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

28.28 	Sec. 5. Minnesota Statutes 2006, section 122A.16, is amended to read:
28.29 	122A.16 HIGHLY QUALIFIED TEACHER DEFINED.
28.30 	(a) A qualified teacher is one holding a valid license, under this chapter, to perform 
28.31 	the particular service for which the teacher is employed in a public school.
28.32 	(b) For the purposes of the federal No Child Left Behind Act, a highly qualified 
28.33 	teacher is one who holds a valid license under this chapter to perform the particular service 
29.1 	for which the teacher is employed in a public school or who meets the requirements of a 
29.2 	highly objective uniform state standard of evaluation (HOUSSE) means a teacher who: 
29.3 	(1) has obtained full state certification or passed the state teacher licensing 
29.4 	examination and holds a license to teach in the state;
29.5 	(2) does not have certification or licensure requirements waived on an emergency, 
29.6 	temporary, or provisional basis; 
29.7 	(3) holds a minimum of a bachelor's degree; and 
29.8 	(4) has demonstrated subject matter competency in each of the core academic 
29.9 	subjects in which the teacher teaches as defined by the federal No Child Left Behind Act.
29.10 	All Minnesota teachers teaching in a core academic subject area, as defined by the 
29.11 	federal No Child Left Behind Act, in which they are not fully licensed may complete the 
29.12 	following HOUSSE process in the core subject area for which the teacher is requesting 
29.13 	highly qualified status by completing an application, in the form and manner described by 
29.14 	the commissioner, that includes:
29.15 	(1) documentation of student achievement as evidenced by norm-referenced test 
29.16 	results that are objective and psychometrically valid and reliable;
29.17 	(2) evidence of local, state, or national activities, recognition, or awards for 
29.18 	professional contribution to achievement;
29.19 	(3) description of teaching experience in the teachers' core subject area in a public 
29.20 	school under a waiver, variance, limited license or other exception; nonpublic school; and 
29.21 	postsecondary institution;
29.22 	(4) test results from the Praxis II content test;
29.23 	(5) evidence of advanced certification from the National Board for Professional 
29.24 	Teaching Standards;
29.25 	(6) evidence of the successful completion of course work or pedagogy courses; and
29.26 	(7) evidence of the successful completion of high quality professional development 
29.27 	activities.
29.28 	Districts must assign a school administrator to serve as a HOUSSE reviewer to 
29.29 	meet with teachers under this paragraph and, where appropriate, certify the teachers' 
29.30 	applications. Teachers satisfy the definition of highly qualified when the teachers receive 
29.31 	at least 100 of the total number of points used to measure the teachers' content expertise 
29.32 	under clauses (1) to (7). Teachers may acquire up to 50 points only in any one clause (1) 
29.33 	to (7). Teachers may use the HOUSSE process to satisfy the definition of highly qualified 
29.34 	for more than one subject area.
29.35 	(c) Achievement of the HOUSSE criteria is not equivalent to a license. A teacher 
29.36 	must obtain permission from the Board of Teaching in order to teach in a public school
30.1 	Subject matter competency to meet federal highly qualified teacher requirements is 
30.2 	determined by the state in compliance with the Elementary and Secondary Education Act, 
30.3 	United States Code, title 20, section 7801(23), and Individuals with Disabilities Education 
30.4 	Improvement Act, United States Code, title 20, section 1401(10).

30.5 	Sec. 6. Minnesota Statutes 2006, section 122A.415, is amended by adding a 
30.6 	subdivision to read:
30.7 		Subd. 4.Basic alternative teacher compensation aid. (a) For fiscal year 2009 
30.8 	and later, the basic alternative teacher compensation aid for a school district with a plan 
30.9 	approved under section 122A.414, subdivision 2b, equals 73.1 percent of the alternative 
30.10 	teacher compensation revenue under subdivision 1. The basic alternative teacher 
30.11 	compensation aid for an intermediate school district or charter school with a plan approved 
30.12 	under section 122A.414, subdivisions 2a and 2b, if the recipient is a charter school, equals 
30.13 	$260 times the number of pupils enrolled in the school on October 1 of the previous 
30.14 	fiscal year, or on October 1 of the current fiscal year for a charter school in the first year 
30.15 	of operation, times the ratio of the sum of the alternative teacher compensation aid and 
30.16 	alternative teacher compensation levy for all participating school districts to the maximum 
30.17 	alternative teacher compensation revenue for those districts under subdivision 1.
30.18 	(b) Notwithstanding paragraph (a) and subdivision 1, the state total basic alternative 
30.19 	teacher compensation aid entitlement must not exceed $43,515,000 for fiscal year 2009, 
30.20 	$42,953,000 for fiscal year 2010, and $42,643,000 for fiscal year 2011 and later. The 
30.21 	commissioner must limit the amount of alternative teacher compensation aid approved 
30.22 	under this section so as not to exceed these limits.

30.23 	EFFECTIVE DATE. This section is effective for revenue for fiscal year 2009 
30.24 	and later.

30.25 	Sec. 7. Minnesota Statutes 2006, section 122A.415, is amended by adding a 
30.26 	subdivision to read:
30.27 		Subd. 5.Alternative teacher compensation levy. For fiscal year 2009 and later, 
30.28 	the alternative teacher compensation levy for a district receiving basic alternative teacher 
30.29 	compensation aid equals the product of: (1) the difference between the district's alternative 
30.30 	teacher compensation revenue, under subdivision 1, and the district's basic alternative 
30.31 	teacher compensation aid, under subdivision 4; times (2) the lesser of one or the ratio of 
30.32 	the district's adjusted net tax capacity per adjusted pupil unit to $5,913.

31.1 	EFFECTIVE DATE. This section is effective for revenue for fiscal year 2009 
31.2 	and later.

31.3 	Sec. 8. Minnesota Statutes 2006, section 122A.415, is amended by adding a 
31.4 	subdivision to read:
31.5 		Subd. 6.Alternative teacher compensation aid. (a) For fiscal year 2009 and 
31.6 	later, a district's alternative teacher compensation equalization aid equals the district's 
31.7 	alternative teacher compensation revenue, minus the district's basic alternative teacher 
31.8 	compensation aid, minus the district's alternative teacher compensation levy. If a district 
31.9 	does not levy the entire amount permitted under subdivision 5, the alternative teacher 
31.10 	compensation equalization aid must be reduced in proportion to the actual amount levied.
31.11 	(b) A district's alternative teacher compensation aid equals the sum of the 
31.12 	district's basic alternative teacher compensation aid and the district's alternative teacher 
31.13 	compensation equalization aid.

31.14 	EFFECTIVE DATE. This section is effective for revenue for fiscal year 2009 
31.15 	and later.

31.16 	Sec. 9. Minnesota Statutes 2006, section 122A.61, is amended by adding a subdivision 
31.17 	to read:
31.18 		Subd. 3.Graduate study. A school district may use the revenue reserved under 
31.19 	subdivision 1 for grants to the district's teachers to pay for graduate study leading to 
31.20 	certification as a college in the schools or concurrent enrollment teacher. In order to 
31.21 	receive a grant, the teacher must be enrolled in a program that includes graduate-level 
31.22 	study focused on teaching a core subject.

31.23 	Sec. 10. Minnesota Statutes 2006, section 123B.02, is amended by adding a 
31.24 	subdivision to read:
31.25 		Subd. 24.Membership in economic development community and civic 
31.26 	organizations. The board may authorize and pay for the membership of any administrator 
31.27 	designated by the board and the school district in those local economic development 
31.28 	associations or other community or civic organizations it deems appropriate.

31.29 	Sec. 11. Minnesota Statutes 2006, section 123B.143, subdivision 1, is amended to read:
31.30 		Subdivision 1.Contract; duties. All districts maintaining a classified secondary 
31.31 	school must employ a superintendent who shall be an ex officio nonvoting member of the 
31.32 	school board. The authority for selection and employment of a superintendent must be 
32.1 	vested in the board in all cases. An individual employed by a board as a superintendent 
32.2 	shall have an initial employment contract for a period of time no longer than three years 
32.3 	from the date of employment. Any subsequent employment contract must not exceed a 
32.4 	period of three years. A board, at its discretion, may or may not renew an employment 
32.5 	contract. A board must not, by action or inaction, extend the duration of an existing 
32.6 	employment contract. Beginning 365 days prior to the expiration date of an existing 
32.7 	employment contract, a board may negotiate and enter into a subsequent employment 
32.8 	contract to take effect upon the expiration of the existing contract. A subsequent contract 
32.9 	must be contingent upon the employee completing the terms of an existing contract. If a 
32.10 	contract between a board and a superintendent is terminated prior to the date specified in 
32.11 	the contract, the board may not enter into another superintendent contract with that same 
32.12 	individual that has a term that extends beyond the date specified in the terminated contract. 
32.13 	A board may terminate a superintendent during the term of an employment contract for any 
32.14 	of the grounds specified in section 122A.40, subdivision 9 or 13. A superintendent shall 
32.15 	not rely upon an employment contract with a board to assert any other continuing contract 
32.16 	rights in the position of superintendent under section 122A.40. Notwithstanding the 
32.17 	provisions of sections 122A.40, subdivision 10 or 11, 123A.32, 123A.75, or any other law 
32.18 	to the contrary, no individual shall have a right to employment as a superintendent based 
32.19 	on order of employment in any district. If two or more districts enter into an agreement for 
32.20 	the purchase or sharing of the services of a superintendent, the contracting districts have 
32.21 	the absolute right to select one of the individuals employed to serve as superintendent 
32.22 	in one of the contracting districts and no individual has a right to employment as the 
32.23 	superintendent to provide all or part of the services based on order of employment in a 
32.24 	contracting district. The superintendent of a district shall perform the following: 
32.25 	(1) visit and supervise the schools in the district, report and make recommendations 
32.26 	about their condition when advisable or on request by the board;
32.27 	(2) recommend to the board employment and dismissal of teachers;
32.28 	(3) superintend school grading practices and examinations for promotions;
32.29 	(4) make reports required by the commissioner;
32.30 	(5) by January 10, submit an annual report to the commissioner in a manner 
32.31 	prescribed by the commissioner, in consultation with school districts, identifying the 
32.32 	expenditures that the district requires to ensure an 80 percent student passage rate on the 
32.33 	basic standards test MCA-IIs taken in the eighth grade, identifying the highest student 
32.34 	passage rate the district expects it will be able to attain on the basic standards test MCA-IIs
32.35 	by grade 12, and the amount of expenditures that the district requires to attain the targeted 
33.1 	student passage rate, and how much the district is cross-subsidizing programs with special 
33.2 	education, basic skills, and general education revenue; and
33.3 	(6) perform other duties prescribed by the board.

33.4 	Sec. 12. Minnesota Statutes 2006, section 123B.92, subdivision 3, is amended to read:
33.5 		Subd. 3.Alternative attendance programs. (a) A district that enrolls nonresident 
33.6 	pupils in programs under sections 124D.03, 124D.06, 124D.08, 123A.05 to 123A.08, 
33.7 	and 124D.68, must provide authorized transportation to the pupil within the attendance 
33.8 	area for the school that the pupil attends at the same level of service that is provided to 
33.9 	resident pupils within the attendance area. The resident district need not provide or pay for 
33.10 	transportation between the pupil's residence and the district's border. 
33.11 	(b) A district may provide transportation to allow a student who attends a high-need 
33.12 	English language learner program and who resides within the transportation attendance 
33.13 	area of the program to continue in the program until the student completes the highest 
33.14 	grade level offered by the program.

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

33.16 	Sec. 13. Minnesota Statutes 2006, section 124D.095, subdivision 3, is amended to read:
33.17 		Subd. 3.Authorization; notice; limitations on enrollment. (a) A student may 
33.18 	apply to an online learning provider to enroll in online learning. A student age 17 or 
33.19 	younger must have the written consent of a parent or guardian to apply. No school district 
33.20 	or charter school may prohibit a student from applying to enroll in online learning. An 
33.21 	online learning provider that accepts a student under this section must, within ten days, 
33.22 	notify the student and the enrolling district if the enrolling district is not the online learning 
33.23 	provider. The notice must report the student's course or program and hours of instruction.
33.24 	(b) An online learning student must notify the enrolling district at least 30 calendar 
33.25 	days before taking an online learning course or program if the enrolling district is not 
33.26 	providing the online learning. An online learning provider must notify the commissioner 
33.27 	that it is delivering online learning and report the number of online learning students it is 
33.28 	accepting and the online learning courses and programs it is delivering.
33.29 	(c) An online learning provider may limit enrollment if the provider's school board 
33.30 	or board of directors adopts by resolution specific standards for accepting and rejecting 
33.31 	students' applications. Student applications may not be rejected for criteria listed in 
33.32 	section 124D.03, subdivision 6.
34.1 	(d) An enrolling district may reduce an online learning student's regular classroom 
34.2 	instructional membership in proportion to the student's membership in online learning 
34.3 	courses.

34.4 	Sec. 14. Minnesota Statutes 2006, section 124D.10, subdivision 3, is amended to read:
34.5 		Subd. 3.Sponsor. (a) A school board; intermediate school district school board; 
34.6 	education district organized under sections 123A.15 to 123A.19; charitable organization 
34.7 	under section 501(c)(3) of the Internal Revenue Code of 1986 that is a member of the 
34.8 	Minnesota Council of Nonprofits or the Minnesota Council on Foundations, registered 
34.9 	with the attorney general's office, and reports an end-of-year fund balance of at least 
34.10 	$2,000,000; Minnesota private college that grants two- or four-year degrees and is 
34.11 	registered with the Minnesota Office of Higher Education under chapter 136A; community 
34.12 	college, state university, or technical college, governed by the Board of Trustees of the 
34.13 	Minnesota State Colleges and Universities; or the University of Minnesota may sponsor 
34.14 	one or more charter schools. 
34.15 	(b) A nonprofit corporation subject to chapter 317A, described in section 317A.905, 
34.16 	and exempt from federal income tax under section 501(c)(6) of the Internal Revenue Code 
34.17 	of 1986, may sponsor one or more charter schools if the charter school has operated for 
34.18 	at least three years under a different sponsor and if the nonprofit corporation has existed 
34.19 	for at least 25 years. 
34.20 	(c) The commissioner may authorize no more than a total of 150 charter schools.

34.21 	Sec. 15. Minnesota Statutes 2006, section 124D.10, subdivision 4, is amended to read:
34.22 		Subd. 4.Formation of school. (a) A sponsor may authorize one or more licensed 
34.23 	teachers under section 122A.18, subdivision 1, to operate a charter school subject to 
34.24 	approval by the commissioner. A board must vote on charter school application for 
34.25 	sponsorship no later than 90 days after receiving the application. After 90 days, the 
34.26 	applicant may apply to the commissioner. If a board elects not to sponsor a charter school, 
34.27 	the applicant may appeal the board's decision to the commissioner who may elect to assist 
34.28 	the applicant in finding an eligible sponsor. The school must be organized and operated as 
34.29 	a cooperative under chapter 308A or nonprofit corporation under chapter 317A and the 
34.30 	provisions under the applicable chapter shall apply to the school except as provided in this 
34.31 	section. Notwithstanding sections 465.717 and 465.719, a school district may create a 
34.32 	corporation for the purpose of creating a charter school.
34.33 	(b) Before the operators may form and operate a school, the sponsor must file an 
34.34 	affidavit with the commissioner stating its intent to authorize a charter school. The 
35.1 	affidavit must state the terms and conditions under which the sponsor would authorize a 
35.2 	charter school and how the sponsor intends to oversee the fiscal and student performance 
35.3 	of the charter school and to comply with the terms of the written contract between the 
35.4 	sponsor and the charter school board of directors under subdivision 6. The commissioner 
35.5 	must approve or disapprove the sponsor's proposed authorization within 90 days of 
35.6 	receipt of the affidavit. Failure to obtain commissioner approval precludes a sponsor from 
35.7 	authorizing the charter school that was the subject of the affidavit.
35.8 	(c) The operators authorized to organize and operate a school, before entering into 
35.9 	a contract or other agreement for professional or other services, goods, or facilities, 
35.10 	must incorporate as a cooperative under chapter 308A or as a nonprofit corporation 
35.11 	under chapter 317A and must establish a board of directors composed of at least five 
35.12 	members until a timely election for members of the charter school board of directors is 
35.13 	held according to the school's articles and bylaws. A charter school board of directors 
35.14 	must be composed of at least five members. Any staff members who are employed at the 
35.15 	school, including teachers providing instruction under a contract with a cooperative, and 
35.16 	all parents of children enrolled in the school may participate in the election for members 
35.17 	of the school's board of directors. Licensed teachers employed at the school, including 
35.18 	teachers providing instruction under a contract with a cooperative, must be a majority 
35.19 	of the members of the board of directors before the school completes its third year of 
35.20 	operation, unless the commissioner waives the requirement for a majority of licensed 
35.21 	teachers on the board. Board of director meetings must comply with chapter 13D.
35.22 	(d) The granting or renewal of a charter by a sponsoring entity must not be 
35.23 	conditioned upon the bargaining unit status of the employees of the school.
35.24 	(e) A sponsor may authorize the operators of a charter school to expand the 
35.25 	operation of the charter school to additional sites or to add additional grades at the school 
35.26 	beyond those described in the sponsor's application as approved by the commissioner only 
35.27 	after submitting a supplemental application to the commissioner in a form and manner 
35.28 	prescribed by the commissioner. The supplemental application must provide evidence that:
35.29 	(1) the expansion of the charter school is supported by need and projected enrollment;
35.30 	(2) the charter school is fiscally sound;
35.31 	(3) the sponsor supports the expansion; and
35.32 	(4) the building of the additional site meets all health and safety requirements to 
35.33 	be eligible for lease aid.
35.34 	(f) The commissioner annually must provide timely financial management training 
35.35 	to newly elected members of a charter school board of directors and ongoing training to 
35.36 	other members of a charter school board of directors. Training must address ways to:
36.1 	(1) proactively assess opportunities for a charter school to maximize all available 
36.2 	revenue sources;
36.3 	(2) establish and maintain complete, auditable records for the charter school;
36.4 	(3) establish proper filing techniques;
36.5 	(4) document formal actions of the charter school, including meetings of the charter 
36.6 	school board of directors;
36.7 	(5) properly manage and retain charter school and student records;
36.8 	(6) comply with state and federal payroll record-keeping requirements; and
36.9 	(7) address other similar factors that facilitate establishing and maintaining complete 
36.10 	records on the charter school's operations.

36.11 	Sec. 16. Minnesota Statutes 2006, section 124D.10, subdivision 23a, is amended to 
36.12 	read:
36.13 		Subd. 23a.Related party lease costs. (a) A charter school is prohibited from 
36.14 	entering a lease of real property with a related party as defined in this subdivision 26, unless 
36.15 	the lessor is a nonprofit corporation under chapter 317A or a cooperative under chapter 
36.16 	308A, and the lease cost is reasonable under section 124D.11, subdivision 4, clause (1). 
36.17 	(b) For purposes of this subdivision section and section 124D.11:
36.18 	(1) A "related party" is an affiliate or close relative of the other party in question, an 
36.19 	affiliate of a close relative, or a close relative of an affiliate.
36.20 	(2) "Affiliate" means a person that directly, or indirectly through one or more 
36.21 	intermediaries, controls, or is controlled by, or is under common control with, another 
36.22 	person.
36.23 	(3) "Close relative" means an individual whose relationship by blood, marriage, or 
36.24 	adoption to another individual is no more remote than first cousin.
36.25 	(4) "Person" means an individual or entity of any kind.
36.26 	(5) "Control" includes the terms "controlling," "controlled by," and "under common 
36.27 	control with" and means the possession, direct or indirect, of the power to direct or cause 
36.28 	the direction of the management, operations, or policies of a person, whether through the 
36.29 	ownership of voting securities, by contract, or otherwise.
36.30 	(c) A lease of real property to be used for a charter school, not excluded in paragraph 
36.31 	(b) (a), must contain the following statement: "This lease is subject to Minnesota Statutes, 
36.32 	section 124D.10, subdivision 23a." 
36.33 	(d) If a charter school enters into as lessee a lease with a related party and the 
36.34 	charter school subsequently closes, the commissioner has the right to recover from the 
37.1 	lessor any lease payments in excess of those that are reasonable under section 124D.11, 
37.2 	subdivision 4, clause (1). 

37.3 	Sec. 17. Minnesota Statutes 2006, section 124D.10, subdivision 24, is amended to read:
37.4 		Subd. 24.Pupil enrollment upon nonrenewal or termination of charter school 
37.5 	contract. If a contract is not renewed or is terminated according to subdivision 23, a 
37.6 	pupil who attended the school, siblings of the pupil, or another pupil who resides in the 
37.7 	same place as the pupil may enroll in the resident district or may submit an application 
37.8 	to a nonresident district according to section 124D.03 at any time. Applications and 
37.9 	notices required by section 124D.03 must be processed and provided in a prompt 
37.10 	manner. The application and notice deadlines in section 124D.03 do not apply under 
37.11 	these circumstances. The closed charter school must transfer the student's educational 
37.12 	records to the student's school district of residence where the records must be retained or 
37.13 	transferred under section 120A.22, subdivision 7.

37.14 	Sec. 18. [124D.2211] AFTER-SCHOOL COMMUNITY LEARNING 
37.15 	PROGRAMS.
37.16 		Subdivision 1.Establishment. A competitive statewide after-school community 
37.17 	learning grant program is established to provide grants to community or nonprofit 
37.18 	organizations, political subdivisions, or school-based programs that serve youth after 
37.19 	school or during nonschool hours. The commissioner shall develop criteria for after-school 
37.20 	community learning programs.
37.21 		Subd. 2.Program outcomes. The expected outcomes of the after-school 
37.22 	community learning programs are to increase:
37.23 	(1) school connectedness of participants;
37.24 	(2) academic achievement of participating students in one or more core academic 
37.25 	areas; and 
37.26 	(3) the capacity of participants to become productive adults.
37.27 		Subd. 3.Grants. An applicant shall submit an after-school community learning 
37.28 	program proposal to the commissioner. The submitted plan must include:
37.29 	(1) collaboration with and leverage of existing community resources that have 
37.30 	demonstrated effectiveness;
37.31 	(2) outreach to children and youth; and
37.32 	(3) involvement of local governments, including park and recreation boards or 
37.33 	schools, unless no government agency is appropriate.
38.1 	Proposals will be reviewed and approved by the commissioner. Approved proposals 
38.2 	are subject to receiving funding.

38.3 	Sec. 19. Minnesota Statutes 2006, section 124D.42, is amended by adding a 
38.4 	subdivision to read:
38.5 		Subd. 8.The Minnesota reading corps program. (a) The Minnesota reading corps 
38.6 	program is established to provide training in a data-based problem-solving model of 
38.7 	literacy instruction to Americorps members working with local Head Start organizations, 
38.8 	other prekindergarten settings, and kindergarten through grade 3 schools to evaluate and 
38.9 	teach early literacy skills to children ages 3 to grade 3.
38.10 	(1) Data collected will be used to tailor specific interventions for children.
38.11 	(2) These interventions shall be guided by formative and summative general 
38.12 	outcome assessments linked to research-based indicators of literacy development.
38.13 	(3) The assessments will guide the implementation of coaching models for 
38.14 	AmeriCorps members and staff that is designed to develop internal literacy coaches that 
38.15 	sustain the model over time.
38.16 	(b) The Minnesota Commission on National and Community Service shall give 
38.17 	priority for allocating AmeriCorps members to partnerships of prekindergarten and 
38.18 	kindergarten through grade 3 schools that have agreed to a goal of closing the literacy 
38.19 	achievement gap by the end of grade 3 by implementing a seamless literacy model from 
38.20 	age 3 to grade 3 in the partnership agencies.
38.21 	(1) The commission shall collect literacy data on children across this age range for 
38.22 	the purpose of documenting the impact of the age 3 to grade 3 model on closing the 
38.23 	literacy achievement gap.
38.24 	(2) The commission shall be required to submit an annual report to the commissioner 
38.25 	of education by January 1.

38.26 	Sec. 20. Minnesota Statutes 2006, section 124D.4531, subdivision 1, is amended to 
38.27 	read:
38.28 		Subdivision 1.Career and technical levy. (a) A district with a career and technical 
38.29 	program approved under this section for the fiscal year in which the levy is certified 
38.30 	may levy an amount equal to the lesser of:
38.31 	(1) $80$91 times the district's average daily membership served in grades 10 
38.32 	through 12 for the fiscal year in which the levy is certified; or
38.33 	(2) 25 percent of approved expenditures in the fiscal year in which the levy is 
38.34 	certified for the following:
39.1 	(i) salaries paid to essential, licensed personnel providing direct instructional 
39.2 	services to students in that fiscal year for services rendered in the district's approved 
39.3 	career and technical education programs;
39.4 	(ii) contracted services provided by a public or private agency other than a Minnesota 
39.5 	school district or cooperative center under subdivision 7;
39.6 	(iii) necessary travel between instructional sites by licensed career and technical 
39.7 	education personnel;
39.8 	(iv) necessary travel by licensed career and technical education personnel for 
39.9 	vocational student organization activities held within the state for instructional purposes;
39.10 	(v) curriculum development activities that are part of a five-year plan for 
39.11 	improvement based on program assessment;
39.12 	(vi) necessary travel by licensed career and technical education personnel for 
39.13 	noncollegiate credit-bearing professional development; and
39.14 	(vii) specialized vocational instructional supplies.
39.15 	(b) Up to ten percent of a district's career and technical levy may be spent on 
39.16 	equipment purchases. Districts using the career and technical levy for equipment 
39.17 	purchases must report to the department on the improved learning opportunities for 
39.18 	students that result from the investment in equipment.
39.19 	(c) The district must recognize the full amount of this levy as revenue for the fiscal 
39.20 	year in which it is certified.

39.21 	Sec. 21. Minnesota Statutes 2006, section 124D.4531, subdivision 3, is amended to 
39.22 	read:
39.23 		Subd. 3.Levy guarantee. Notwithstanding subdivision 1, the career and technical 
39.24 	education levy for a district is not less than the lesser of:
39.25 	(1) the greater of $15,000 or the district's career and technical education levy 
39.26 	authority for the previous fiscal year; or
39.27 	(2) 100 percent of the approved expenditures for career and technical programs 
39.28 	included in subdivision 1, paragraph (b) (a), for the fiscal year in which the levy is certified.

39.29 	Sec. 22. [124D.645] MULTIRACIAL DIVERSITY.
39.30 	(a) Notwithstanding other law or rule to the contrary, and in order to effectively 
39.31 	meet students' educational needs and foster parents' meaningful participation in their 
39.32 	children's education, a school district may apply to the commissioner for a waiver from 
39.33 	the requirement to maintain racial balance within a district school if the racial imbalance 
39.34 	in that school results from:
40.1 	(1) the enrollment of protected multiracial students and the proportion of enrolled 
40.2 	multiracial students reflects the proportion of multiracial students who reside in the school 
40.3 	attendance area or who are enrolled in the grade levels served by the district; or
40.4 	(2) the enrollment of limited English proficiency students in a transition program 
40.5 	that includes an intensive English component.
40.6 	The commissioner must grant the waiver if the district in which the school is located 
40.7 	offers the multiracial students or the limited English proficiency students, as appropriate, 
40.8 	the option of enrolling in another school with the requisite racial balance, and the students' 
40.9 	parents choose not to pursue that option.
40.10 	(b) This section is effective for the 2006-2007 through 2010-2011 school years or 
40.11 	until amended rules are adopted under Minnesota Rules, chapter 3535, pertaining to racial 
40.12 	diversity, whichever comes first.

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

40.14 	Sec. 23. Minnesota Statutes 2006, section 124D.84, subdivision 1, is amended to read:
40.15 		Subdivision 1.Awards. The commissioner may award shall establish procedures for 
40.16 	the distribution of scholarships to any Minnesota resident student who is of one-fourth or 
40.17 	more Indian ancestry, who has applied for other existing state and federal scholarship and 
40.18 	grant programs, and who, in the opinion of the commissioner, based upon postsecondary 
40.19 	institution recommendations, has the capabilities to benefit from further education. 
40.20 	Scholarships must be for accredited degree programs in accredited Minnesota colleges 
40.21 	or universities or for courses in accredited Minnesota business, technical, or vocational 
40.22 	schools. Scholarships may also be given to students attending Minnesota colleges that 
40.23 	are in candidacy status for obtaining full accreditation, and are eligible for and receiving 
40.24 	federal financial aid programs. Students are also eligible for scholarships when enrolled 
40.25 	as students in Minnesota higher education institutions that have joint programs with 
40.26 	other accredited higher education institutions. Scholarships shall be used to defray the 
40.27 	total cost of education including tuition, incidental fees, books, supplies, transportation, 
40.28 	other related school costs and the cost of board and room and shall be paid directly to the 
40.29 	college or school concerned where the student receives federal financial aid. The total cost 
40.30 	of education includes all tuition and fees for each student enrolling in a public institution 
40.31 	and the portion of tuition and fees for each student enrolling in a private institution that 
40.32 	does not exceed the tuition and fees at a comparable public institution. Each student 
40.33 	shall be awarded a scholarship based on the total cost of the student's education and
40.34 	a federal standardized need analysis after application of federal Pell money, state grant 
40.35 	money, and other scholarships. Depending upon students' unmet needs, the Minnesota 
41.1 	Indian scholarship program may award up to the current federal Pell grant allowable 
41.2 	maximum student award per school year. Applicants are encouraged to apply for all other 
41.3 	sources of financial aid.
41.4 	When an Indian student satisfactorily completes the work required by a certain 
41.5 	college or school in a school year the student is eligible for additional scholarships, if 
41.6 	additional training is necessary to reach the student's educational and vocational objective. 
41.7 	Scholarships may not be given to any Indian student for more than five years of study at 
41.8 	the undergraduate level and five years at the graduate level. Students may acquire only 
41.9 	one degree per level and one terminal degree.

41.10 	Sec. 24. [124D.8955] PARENT AND FAMILY INVOLVEMENT POLICY.
41.11 	(a) In order to promote and support student achievement, a local school board must 
41.12 	formally adopt and implement a parent and family involvement policy that promotes 
41.13 	and supports:
41.14 	(1) communication between home and school that is regular, two-way, and 
41.15 	meaningful;
41.16 	(2) parenting skills;
41.17 	(3) parents and caregivers who play an integral role in assisting student learning and 
41.18 	learn about fostering students' academic success and learning at home and school;
41.19 	(4) welcoming parents in the school and seeking their support and assistance;
41.20 	(5) partnerships with parents in the decisions that affect children and families 
41.21 	in the schools; and
41.22 	(6) providing community resources to strengthen schools, families, and student 
41.23 	learning.
41.24 	(b) The school board must convene an advisory committee composed of an equal 
41.25 	number of resident parents who are not district employees and school staff to make 
41.26 	recommendations to the board on developing and evaluating the board's parent and family 
41.27 	involvement policy. The advisory committee must represent the diversity of the district. 
41.28 	The advisory committee must consider the district's demographic diversity and barriers to 
41.29 	parent involvement when developing its recommendations. The advisory committee must 
41.30 	present its recommendations to the board for board consideration.
41.31 	(c) The board must consider best practices when implementing this policy.
41.32 	(d) The board periodically must review this policy to determine whether it is aligned 
41.33 	with the most current research findings on parent involvement policies and practices and 
41.34 	how effective the policy is in supporting increased student achievement.

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

42.3 	Sec. 25. Minnesota Statutes 2006, section 125A.56, is amended to read:
42.4 	125A.56 ALTERNATE INSTRUCTION REQUIRED BEFORE ASSESSMENT 
42.5 	REFERRAL; WAIVER EARLY INTERVENING TO MAKE ADEQUATE 
42.6 	YEARLY PROGRESS REQUIRED.
42.7 	(a) Before a pupil is referred for a special education assessment evaluation, the 
42.8 	district must conduct and document at least two instructional strategies, alternatives, 
42.9 	or interventions using a system of scientifically based instruction in reading based on 
42.10 	the needs of the pupil while the pupil is in the regular classroom. The pupil's teacher 
42.11 	must provide the documentation or the district may devise a problem-solving system to 
42.12 	meet this requirement. A special education assessment evaluation team may waive this 
42.13 	requirement when they determine the pupil's need for the assessment evaluation is urgent. 
42.14 	This section may not be used to deny a pupil's right to a special education assessment
42.15 	evaluation except that a pupil's participation in a response to an intervention system when 
42.16 	conducted as a part of a special education evaluation shall not be construed as a denial of a 
42.17 	pupil's right to a special education assessment.
42.18 	(b) A school district shall use alternative intervention services, including the 
42.19 	assurance of mastery program under section 124D.66 and the supplemental early 
42.20 	education program under section 124D.081, to serve at-risk students who demonstrate 
42.21 	a need for alternative instructional strategies or interventions may meet the requirement 
42.22 	under paragraph (a) by establishing an early intervening, cross-categorical program that 
42.23 	has the following components:
42.24 	(1) a system of valid and reliable general outcomes measures in reading with 
42.25 	satisfactory correlations to state testing administered to all students in kindergarten 
42.26 	through grade 8 at least three times per year. The assessment must be called a benchmark 
42.27 	assessment. Pupils in grades 9 and above may participate in benchmark assessments as 
42.28 	determined by the school. The system must have the capability to provide benchmark 
42.29 	assessments by measuring the performance of all pupils three times per year and the 
42.30 	capability to implement progress monitoring. For the purpose of this section, progress 
42.31 	monitoring is the frequent and continuous measurement of pupil performance;
42.32 	(2) a system of scientifically based instruction and intervention in reading; and
42.33 	(3) an organizational plan that allows teachers, paraprofessionals, and volunteers 
42.34 	funded through various funding streams to work as a team by grade level or other 
43.1 	configuration across all grades and settings to deliver instruction using a tiered model. The 
43.2 	team must be trained in response to intervention methodology.
43.3 	(c) A site using the provisions of paragraph (b) must have its teachers and 
43.4 	paraprofessionals work together in a collaborative manner with students who are at risk of 
43.5 	not meeting standards. Staff being claimed for state special education categorical aid may, 
43.6 	as an intervention provided for in paragraph (b), clause (2), provide instruction to pupils 
43.7 	who are at risk of not meeting standards when instructing them in a small group, which 
43.8 	includes one or more students with a disability at the same instructional level and making 
43.9 	the same progress in the curriculum or intervention so long as the needs of the pupils with 
43.10 	disabilities are being met consistent with their individual education plans. Schools must 
43.11 	ensure that the needs of the student with a disability in the groupings remain the focus 
43.12 	of instruction. Schools must not establish permanent classes or groups for instruction as 
43.13 	part of meeting this requirement. To the extent allowed by federal law, teachers and 
43.14 	paraprofessionals shall not be considered to be supplanting funds when instructing a group 
43.15 	of students during the core reading time established by the school since the instruction 
43.16 	supplements the capacity of the regular classroom teacher to provide instruction.

43.17 	Sec. 26. Laws 2005, First Special Session chapter 5, article 2, section 81, as amended 
43.18 	by Laws 2006, chapter 263, article 2, section 20, is amended to read:
43.19 	Sec. 81. BOARD OF SCHOOL ADMINISTRATORS; RULEMAKING 
43.20 	AUTHORITY.
43.21 	
43.22 	On or before June 30, 2007 2008, the Board of School Administrators may adopt 
43.23 	rules to reflect the changes in duties, responsibilities, and roles of school administrators 
43.24 	under sections 121A.035, 121A.037 and 299F.30, and to make technical revisions and 
43.25 	clarifications to Minnesota Rules, chapter 3512. 

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

43.27 	Sec. 27. MANDARIN CHINESE PROGRAM GRANTS.
 43.28 	(a) A pilot program for fiscal years 2008 and 2009 is established to assist interested 
43.29 	school districts or charter schools in initiating Mandarin Chinese programs or enhancing 
43.30 	successful models in place. The commissioner shall select program participants to include 
43.31 	both instate and outstate school districts or charter schools equitably to the extent possible.
43.32 	(b) An interested school district, charter school, or group of school districts or 
43.33 	charter schools may apply to the commissioner of education in the form and manner the 
43.34 	commissioner determines. Eligible applicants must identify in their applications program 
44.1 	model: description of capacity for offering programs, including staffing; articulation 
44.2 	plan as needed based on program model; steps for the development of benchmarks and 
44.3 	the assessment of language proficiency; evidence of necessary target student population 
44.4 	that aligns with proposed program model; evidence of community and staff support; 
44.5 	plan for sustainability beyond the period of start-up funding; and the ability to provide 
44.6 	matching funds.
44.7 	(c) When reviewing applications, the commissioner shall determine whether 
44.8 	applicants meet the requirements in paragraphs (a) and (b). Grants shall be provided 
44.9 	to applicants that satisfy all the requirements to assist in initiating Mandarin Chinese 
44.10 	programs or enhancing successful models in place. The commissioner may award up to 
44.11 	25 grants and shall distribute the grant awards to instate and outstate school districts or 
44.12 	charter schools equitably to the extent possible.
44.13 	(d) The commissioner shall provide for an evaluation of the impact of each Mandarin 
44.14 	Chinese program biannually.

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

44.16 	Sec. 28. RULEMAKING REQUIRED.
 44.17 	(a) Notwithstanding the time limit in Minnesota Statutes, section 14.125, the Board 
44.18 	of Teaching must adopt the rules it was mandated to adopt under Laws 2003, chapter 129, 
44.19 	article 1, section 10. The board must publish a notice of intent to adopt rules or a notice of 
44.20 	hearing for rules subject to this section before January 1, 2008. 
44.21 	(b) The Board of Teaching may charge fees to issue new credentials and to renew 
44.22 	credentials for paraprofessionals issued credentials under the rules adopted under this 
44.23 	section.

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

44.25 	Sec. 29. APPROPRIATIONS.
 44.26 		Subdivision 1.Department. The sums indicated in this section are appropriated 
44.27 	from the general fund to the Department of Education for the fiscal years designated.
44.28 		Subd. 2.Charter school building lease aid. For building lease aid under Minnesota 
44.29 	Statutes, section 124D.11, subdivision 4: 

44.30		$
	31,875,000
	.....
	2008
	
44.31		$
	34,944,000
	.....
	2009
	
44.32 	The 2008 appropriation includes $2,814,000 for 2007 and $29,061,000 for 2008.
45.1 	The 2009 appropriation includes $3,229,000 for 2008 and $31,715,000 for 2009.
45.2 		Subd. 3.Charter school startup aid. For charter school startup cost aid under 
45.3 	Minnesota Statutes, section 124D.11, subdivision 8:

45.4		$
	241,000
	.....
	2008
	
45.5 	The 2008 appropriation includes $241,000 for 2007 and $0 for 2008.
45.6 		Subd. 4.Integration aid. For integration aid under Minnesota Statutes, section 
45.7 	124D.86, subdivision 5:

45.8		$
	61,769,000
	.....
	2008
	
45.9		$
	61,000,000
	.....
	2009
	
45.10 	The 2008 appropriation includes $5,824,000 for 2007 and $55,945,000 for 2008.
45.11 	The 2009 appropriation includes $6,216,000 for 2008 and $54,784,000 for 2009.
45.12 		Subd. 5.Magnet school grants. For magnet school and program grants:

45.13		$
	750,000
	.....
	2008
	
45.14		$
	750,000
	.....
	2009
	
45.15 	These amounts may be used for magnet school programs under Minnesota Statutes, 
45.16 	section 124D.88.
45.17 		Subd. 6.Interdistrict desegregation or integration transportation grants. For 
45.18 	interdistrict desegregation or integration transportation grants under Minnesota Statutes, 
45.19 	section 124D.87:

45.20		$
	9,639,000
	.....
	2008
	
45.21		$
	11,567,000
	.....
	2009
	
45.22 		Subd. 7.Success for the future. For American Indian success for the future grants 
45.23 	under Minnesota Statutes, section 124D.81:

45.24		$
	2,137,000
	.....
	2008
	
45.25		$
	2,137,000
	.....
	2009
	
45.26 	The 2008 appropriation includes $213,000 for 2007 and $1,924,000 for 2008.
45.27 	The 2009 appropriation includes $213,000 for 2008 and $1,924,000 for 2009.
45.28 		Subd. 8.American Indian scholarships. For American Indian scholarships under 
45.29 	Minnesota Statutes, section 124D.84:

45.30		$
	1,875,000
	.....
	2008
	
45.31		$
	1,875,000
	.....
	2009
	
46.1 		Subd. 9.American Indian teacher preparation grants. For joint grants to assist 
46.2 	American Indian people to become teachers under Minnesota Statutes, section 122A.63:

46.3		$
	190,000
	.....
	2008
	
46.4		$
	190,000
	.....
	2009
	
46.5 		Subd. 10.Tribal contract schools. For tribal contract school aid under Minnesota 
46.6 	Statutes, section 124D.83:

46.7		$
	2,212,000
	.....
	2008
	
46.8		$
	2,380,000
	.....
	2009
	
46.9 	The 2008 appropriation includes $204,000 for 2007 and $2,008,000 for 2008.
46.10 	The 2009 appropriation includes $223,000 for 2008 and $2,157,000 for 2009.
46.11 		Subd. 11.Early childhood programs at tribal schools. For early childhood 
46.12 	family education programs at tribal contract schools under Minnesota Statutes, section 
46.13 	124D.83, subdivision 4:

46.14		$
	68,000
	.....
	2008
	
46.15		$
	68,000
	.....
	2009
	
46.16 		Subd. 12.Statewide testing and reporting system. For the statewide testing and 
46.17 	reporting system under Minnesota Statutes, section 120B.30:

46.18		$
	9,000,000
	.....
	2008
	
46.19		$
	9,000,000
	.....
	2009
	
46.20 	Any balance in the first year does not cancel but is available in the second year.
46.21 		Subd. 13.Examination fees; teacher training and support programs. (a) For 
46.22 	students' advanced placement and international baccalaureate examination fees under 
46.23 	Minnesota Statutes, section 120B.13, subdivision 3, and the training and related costs 
46.24 	for teachers and other interested educators under Minnesota Statutes, section 120B.13, 
46.25 	subdivision 1:

46.26		$
	4,500,000
	.....
	2008
	
46.27		$
	4,500,000
	.....
	2009
	
46.28 	(b) The advanced placement program shall receive 75 percent of the appropriation 
46.29 	each year and the international baccalaureate program shall receive 25 percent of the 
46.30 	appropriation each year. The department, in consultation with representatives of the 
46.31 	advanced placement and international baccalaureate programs selected by the Advanced 
46.32 	Placement Advisory Council and IBMN, respectively, shall determine the amounts of 
47.1 	the expenditures each year for examination fees and training and support programs for 
47.2 	each program.
47.3 	(c) Notwithstanding Minnesota Statutes, section 120B.13, subdivision 1, at least 
47.4 	$500,000 each year is for teachers to attend subject matter summer training programs 
47.5 	and follow-up support workshops approved by the advanced placement or international 
47.6 	baccalaureate programs. The amount of the subsidy for each teacher attending an 
47.7 	advanced placement or international baccalaureate summer training program or workshop 
47.8 	shall be the same. The commissioner shall determine the payment process and the amount 
47.9 	of the subsidy.
47.10 	(d) The commissioner shall pay all examination fees for all students of low-income 
47.11 	families under Minnesota Statutes, section 120B.13, subdivision 3, and to the extent 
47.12 	of available appropriations shall also pay examination fees for students sitting for an 
47.13 	advanced placement examination, international baccalaureate examination, or both.
47.14 	Any balance in the first year does not cancel but is available in the second year.
47.15 		Subd. 14.First grade preparedness. For first grade preparedness grants under 
47.16 	Minnesota Statutes, section 124D.081:

47.17		$
	7,250,000
	.....
	2008
	
47.18		$
	7,250,000
	.....
	2009
	
47.19 		Subd. 15.Youth works program. For funding youth works programs under 
47.20 	Minnesota Statutes, sections 124D.37 to 124D.45:

47.21		$
	900,000
	.....
	2008
	
47.22		$
	900,000
	.....
	2009
	
47.23 	A grantee organization may provide health and child care coverage to the dependents 
47.24 	of each participant enrolled in a full-time youth works program to the extent such coverage 
47.25 	is not otherwise available.
47.26 		Subd. 16.Student organizations. For student organizations:

47.27		$
	725,000
	.....
	2008
	
47.28		$
	725,000
	.....
	2009
	
47.29 	$40,000 each year is for student organizations serving health occupations.
47.30 	$38,000 each year is for student organizations serving service occupations.
47.31 	$88,000 each year is for student organizations serving trade and industry occupations.
47.32 	$84,000 each year is for student organizations serving business occupations.
47.33 	$131,000 each year is for student organizations serving agriculture occupations.
48.1 	$125,000 each year is for student organizations serving family and consumer science 
48.2 	occupations.
48.3 	$95,000 each year is for student organizations serving marketing occupations.
48.4 	Any balance in the first year does not cancel but is available in the second year.
48.5 		Subd. 17.Educational Planning and Assessment System (EPAS) program.
 48.6 	For the Educational Planning and Assessment System (EPAS) program under Minnesota 
48.7 	Statutes, section 120B.128:

48.8		$
	829,000
	.....
	2008
	
48.9		$
	829,000
	.....
	2009
	
48.10 	Any balance in the first year does not cancel but is available in the second year.
48.11 		Subd. 18.College-level examination program (CLEP). For the college-level 
48.12 	examination program (CLEP) under Minnesota Statutes, section 120B.131:

48.13		$
	1,650,000
	.....
	2008
	
48.14		$
	1,650,000
	.....
	2009
	
48.15 	Any balance in the first year does not cancel but is available in the second year.
48.16 		Subd. 19.Best practices. (a) For best practices grants:

48.17		$
	1,510,000
	.....
	2008
	
48.18		$
	1,510,000
	.....
	2009
	
48.19 	(b) $400,000 each year is for a grant to the Minnesota Humanities Commission 
48.20 	under Minnesota Statutes, section 138.911.
48.21 	(c) $150,000 each year is for a grant to the Minnesota Historical Society.
48.22 	(d) $250,000 each year is for a grant to A Chance to Grow/New Visions for the 
48.23 	Minnesota Learning Resource Center's comprehensive training program for education 
48.24 	professionals charged with helping children acquire basic reading and mathematic skills.
48.25 	(e) $120,000 each year is for the quantum opportunities program.
48.26 	(f) $500,000 each year is for grants to teachers enrolled in programs leading to 
48.27 	certification as a college in the schools or concurrent enrollment teacher.
48.28 		Subd. 20.Mandarin Chinese program. For Mandarin Chinese program grants 
48.29 	under section 27:

48.30		$
	250,000
	.....
	2008
	
48.31		$
	250,000
	.....
	2009
	
48.32 	Any balance in the first year does not cancel but is available in the second year. 
48.33 	This is a onetime appropriation.
49.1 		Subd. 21.The Minnesota Reading Corps program. For the establishment of the 
49.2 	Minnesota Reading Corps program under Minnesota Statutes, section 124D.42:

49.3		$
	1,000,000
	.....
	2008
	
49.4		$
	1,000,000
	.....
	2009
	
49.5 	Any balance in the first year does not cancel but is available in the second year.
49.6 		Subd. 22.Collaborative urban educator recruitment and training programs.
 49.7 	For grants to collaborative urban educator recruitment and training programs:

49.8		$
	1,000,000
	.....
	2008
	
49.9		$
	1,000,000
	.....
	2009
	
49.10 	$400,000 each year is for the Southeast Asian teacher program at Concordia 
49.11 	University, St. Paul; $300,000 each year is for the collaborative urban educator program at 
49.12 	the University of St. Thomas; and $300,000 each year is for the Center for Excellence in 
49.13 	Urban Teaching at Hamline University. Grant recipients must collaborate with urban and 
49.14 	nonurban school districts.
49.15 	Any balance in the first year does not cancel but is available in the second year.
49.16 		Subd. 23.Alternative teacher compensation aid. For alternative teacher 
49.17 	compensation aid under Minnesota Statutes, section 122A.415, subdivision 6:

49.18		$
	39,164,000
	.....
	2009
	
49.19 	The 2009 appropriation includes $0 for fiscal year 2008 and $39,164,000 for fiscal 
49.20 	year 2009.
49.21 		Subd. 24.Professional teaching standards. For grant awards for national board 
49.22 	for professional teaching standards certification and for regional coordinators to counsel 
49.23 	and assist teacher candidates for their certification under Laws 1997, First Special 
49.24 	Session chapter 4, article 5, section 22, as amended by Laws 1999, chapter 241, article 
49.25 	9, section 46:

49.26		$
	500,000
	.....
	2008
	
49.27 	Any balance in the first year does not cancel but is available in the second year.
49.28 		Subd. 25.Statewide science, technology, engineering, and math initiative.
 49.29 	For a grant to the Science Museum of Minnesota for the statewide science, technology, 
49.30 	engineering, and math initiative:

49.31		$
	1,500,000
	.....
	2008
	
49.32		$
	1,500,000
	.....
	2009
	
50.1 	Of this amount, $750,000 each year is available for the teacher resource center 
50.2 	and other related programs and $750,000 each year is available for the expansion and 
50.3 	support of the middle school math and science initiative including teacher workshops and 
50.4 	expanded outreach programs in classrooms.
50.5 	This grant includes funding for an evaluation of the programs by an entity approved 
50.6 	by the Department of Education.
50.7 		Subd. 26.St. Croix River Education District. For a grant to the St. Croix River 
50.8 	Education District: 

50.9		$
	450,000
	.....
	2008
	
50.10		$
	450,000
	.....
	2009
	
50.11 	These funds must be used to:
50.12 	(1) deliver standardized research-based professional development in 
50.13 	problem-solving, including response to intervention, scientifically based reading 
50.14 	instruction, and standards-aligned instruction and assessment;
50.15 	(2) provide coaching to targeted districts throughout the state;
50.16 	(3) deliver large scale training throughout the state;
50.17 	(4) provide ongoing technical assistance to schools;
50.18 	(5) assist with implementing professional development content into higher education 
50.19 	instructional curricula; and
50.20 	(6) evaluate the effectiveness of project activities.
50.21 	This is a onetime appropriation.
50.22 		Subd. 27.After-school community learning grants. For after-school community 
50.23 	learning grants under Minnesota Statutes, section 124D.2211:

50.24		$
	3,500,000
	.....
	2008
	
50.25		$
	3,500,000
	.....
	2009
	
50.26 	Any balance in the first year does not cancel but is available in the second year.
50.27 	The commissioner shall hire one full-time equivalent staff person to administer the 
50.28 	statewide after-school community learning grant program.
50.29 	The Department of Education shall give strong consideration to an application 
50.30 	for a grant under this subdivision by Independent School District No. 625, St. Paul, on 
50.31 	behalf of the city of St. Paul to increase the number and quality of after-school and school 
50.32 	release time activities for children within the school district. A grant provided under this 
50.33 	subdivision to the Independent School District No. 625, St. Paul, in partnership with the 
50.34 	city of St. Paul must improve opportunities for learning provided by the district and by 
51.1 	nonprofit programs serving youth, and for staff development for library and park and 
51.2 	recreation workers who have frequent contact with children.
51.3 		Subd. 28.Libre Academy Sober School. For a grant to the Libre Academy Sober 
51.4 	School in Litchfield:

51.5		$
	25,000
	.....
	2008
	
51.6 	This grant must not be paid unless the school receives a grant of $25,000 from 
51.7 	Meeker County.

51.8 	Sec. 30. REVISOR'S INSTRUCTION.
 51.9 	In Minnesota Statutes, the revisor of statutes shall codify Minnesota Statutes, 
51.10 	section 124D.10, subdivision 23a, paragraph (b), as Minnesota Statutes, section 124D.10, 
51.11 	subdivision 26.

51.12 	Sec. 31.  REPEALER.
 51.13 	Minnesota Statutes 2006, section 124D.62, is repealed.

51.14 	ARTICLE 3
51.15 	SPECIAL PROGRAMS

51.16 	Section 1. Minnesota Statutes 2006, section 123B.92, subdivision 1, is amended to read:
51.17 		Subdivision 1.Definitions. For purposes of this section and section 125A.76, the 
51.18 	terms defined in this subdivision have the meanings given to them.
51.19 	(a) "Actual expenditure per pupil transported in the regular and excess transportation 
51.20 	categories" means the quotient obtained by dividing:
51.21 	(1) the sum of:
51.22 	(i) all expenditures for transportation in the regular category, as defined in paragraph 
51.23 	(b), clause (1), and the excess category, as defined in paragraph (b), clause (2), plus
51.24 	(ii) an amount equal to one year's depreciation on the district's school bus fleet 
51.25 	and mobile units computed on a straight line basis at the rate of 15 percent per year for 
51.26 	districts operating a program under section 124D.128 for grades 1 to 12 for all students in 
51.27 	the district and 12-1/2 percent per year for other districts of the cost of the fleet, plus
51.28 	(iii) an amount equal to one year's depreciation on the district's type three school 
51.29 	buses, as defined in section 169.01, subdivision 6, clause (5), which must be used a 
51.30 	majority of the time for pupil transportation purposes, computed on a straight line basis at 
51.31 	the rate of 20 percent per year of the cost of the type three school buses by:
52.1 	(2) the number of pupils eligible for transportation in the regular category, as defined 
52.2 	in paragraph (b), clause (1), and the excess category, as defined in paragraph (b), clause (2).
52.3 	(b) "Transportation category" means a category of transportation service provided to 
52.4 	pupils as follows:
52.5 	(1) Regular transportation is:
52.6 	(i) transportation to and from school during the regular school year for resident 
52.7 	elementary pupils residing one mile or more from the public or nonpublic school they 
52.8 	attend, and resident secondary pupils residing two miles or more from the public 
52.9 	or nonpublic school they attend, excluding desegregation transportation and noon 
52.10 	kindergarten transportation; but with respect to transportation of pupils to and from 
52.11 	nonpublic schools, only to the extent permitted by sections 123B.84 to 123B.87;
52.12 	(ii) transportation of resident pupils to and from language immersion programs;
52.13 	(iii) transportation of a pupil who is a custodial parent and that pupil's child between 
52.14 	the pupil's home and the child care provider and between the provider and the school, if 
52.15 	the home and provider are within the attendance area of the school;
52.16 	(iv) transportation to and from or board and lodging in another district, of resident 
52.17 	pupils of a district without a secondary school; and
52.18 	(v) transportation to and from school during the regular school year required under 
52.19 	subdivision 3 for nonresident elementary pupils when the distance from the attendance 
52.20 	area border to the public school is one mile or more, and for nonresident secondary pupils 
52.21 	when the distance from the attendance area border to the public school is two miles or 
52.22 	more, excluding desegregation transportation and noon kindergarten transportation.
52.23 	For the purposes of this paragraph, a district may designate a licensed day care 
52.24 	facility, school day care facility, respite care facility, the residence of a relative, or the 
52.25 	residence of a person chosen by the pupil's parent or guardian as the home of a pupil for 
52.26 	part or all of the day, if requested by the pupil's parent or guardian, and if that facility or 
52.27 	residence is within the attendance area of the school the pupil attends.
52.28 	(2) Excess transportation is:
52.29 	(i) transportation to and from school during the regular school year for resident 
52.30 	secondary pupils residing at least one mile but less than two miles from the public or 
52.31 	nonpublic school they attend, and transportation to and from school for resident pupils 
52.32 	residing less than one mile from school who are transported because of extraordinary 
52.33 	traffic, drug, or crime hazards; and
52.34 	(ii) transportation to and from school during the regular school year required under 
52.35 	subdivision 3 for nonresident secondary pupils when the distance from the attendance area 
52.36 	border to the school is at least one mile but less than two miles from the public school 
53.1 	they attend, and for nonresident pupils when the distance from the attendance area border 
53.2 	to the school is less than one mile from the school and who are transported because of 
53.3 	extraordinary traffic, drug, or crime hazards.
53.4 	(3) Desegregation transportation is transportation within and outside of the district 
53.5 	during the regular school year of pupils to and from schools located outside their normal 
53.6 	attendance areas under a plan for desegregation mandated by the commissioner or under 
53.7 	court order.
53.8 	(4) "Transportation services for pupils with disabilities" is:
53.9 	(i) transportation of pupils with disabilities who cannot be transported on a regular 
53.10 	school bus between home or a respite care facility and school;
53.11 	(ii) necessary transportation of pupils with disabilities from home or from school to 
53.12 	other buildings, including centers such as developmental achievement centers, hospitals, 
53.13 	and treatment centers where special instruction or services required by sections 125A.03
53.14 	to 125A.24, 125A.26 to 125A.48, and 125A.65 are provided, within or outside the district 
53.15 	where services are provided;
53.16 	(iii) necessary transportation for resident pupils with disabilities required by sections 
53.17 	125A.12, and 125A.26 to 125A.48;
53.18 	(iv) board and lodging for pupils with disabilities in a district maintaining special 
53.19 	classes;
53.20 	(v) transportation from one educational facility to another within the district for 
53.21 	resident pupils enrolled on a shared-time basis in educational programs, and necessary 
53.22 	transportation required by sections 125A.18, and 125A.26 to 125A.48, for resident pupils 
53.23 	with disabilities who are provided special instruction and services on a shared-time basis 
53.24 	or if resident pupils are not transported, the costs of necessary travel between public 
53.25 	and private schools or neutral instructional sites by essential personnel employed by the 
53.26 	district's program for children with a disability;
53.27 	(vi) transportation for resident pupils with disabilities to and from board and lodging 
53.28 	facilities when the pupil is boarded and lodged for educational purposes; and
53.29 	(vii) services described in clauses (i) to (vi), when provided for pupils with 
53.30 	disabilities in conjunction with a summer instructional program that relates to the pupil's 
53.31 	individual education plan or in conjunction with a learning year program established 
53.32 	under section 124D.128.
53.33 	For purposes of computing special education base revenue initial aid under section 
53.34 	125A.76, subdivision 2, the cost of providing transportation for children with disabilities 
53.35 	includes (A) the additional cost of transporting a homeless student from a temporary 
53.36 	nonshelter home in another district to the school of origin, or a formerly homeless student 
54.1 	from a permanent home in another district to the school of origin but only through the end 
54.2 	of the academic year; and (B) depreciation on district-owned school buses purchased after 
54.3 	July 1, 2005, and used primarily for transportation of pupils with disabilities, calculated 
54.4 	according to paragraph (a), clauses (ii) and (iii). Depreciation costs included in the 
54.5 	disabled transportation category must be excluded in calculating the actual expenditure 
54.6 	per pupil transported in the regular and excess transportation categories according to 
54.7 	paragraph (a).
54.8 	(5) "Nonpublic nonregular transportation" is:
54.9 	(i) transportation from one educational facility to another within the district for 
54.10 	resident pupils enrolled on a shared-time basis in educational programs, excluding 
54.11 	transportation for nonpublic pupils with disabilities under clause (4);
54.12 	(ii) transportation within district boundaries between a nonpublic school and a 
54.13 	public school or a neutral site for nonpublic school pupils who are provided pupil support 
54.14 	services pursuant to section 123B.44; and
54.15 	(iii) late transportation home from school or between schools within a district for 
54.16 	nonpublic school pupils involved in after-school activities.
54.17 	(c) "Mobile unit" means a vehicle or trailer designed to provide facilities for 
54.18 	educational programs and services, including diagnostic testing, guidance and counseling 
54.19 	services, and health services. A mobile unit located off nonpublic school premises is a 
54.20 	neutral site as defined in section 123B.41, subdivision 13.

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

54.22 	Sec. 2. Minnesota Statutes 2006, section 124D.454, subdivision 2, is amended to read:
54.23 		Subd. 2.Definitions. For the purposes of this section, the definitions in this 
54.24 	subdivision apply.
54.25 	(a) "Base year" means the second fiscal year preceding the fiscal year for which 
54.26 	aid will be paid.
54.27 	(b) "Basic revenue" has the meaning given it in section 126C.10, subdivision 2. 
54.28 	For the purposes of computing basic revenue pursuant to this section, each child with a 
54.29 	disability shall be counted as prescribed in section 126C.05, subdivision 1. 
54.30 	(c) "Average daily membership" has the meaning given it in section 126C.05. 
54.31 	(d) "Program growth factor" means 1.00 for fiscal year 1998 and later. 
54.32 	(e) "Aid percentage factor" means 100 percent for fiscal year 2000 and later.
54.33 	(f)(b) "Essential personnel" means a licensed teacher, licensed support services 
54.34 	staff person, paraprofessional providing direct services to students, or licensed personnel 
55.1 	under subdivision 12. This definition is not intended to change or modify the definition of 
55.2 	essential employee in chapter 179A.

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

55.4 	Sec. 3. Minnesota Statutes 2006, section 124D.454, subdivision 3, is amended to read:
55.5 		Subd. 3.Base revenue Initial aid. (a) The transition-disabled program base revenue
55.6 	initial aid equals the sum of the following amounts computed using basecurrent year data:
55.7 	(1) 68 percent of the salary of each essential licensed person or approved 
55.8 	paraprofessional who provides direct instructional services to students employed during 
55.9 	that fiscal year for services rendered in that district's transition program for children with a 
55.10 	disability;
55.11 	(2) 47 percent of the costs of necessary equipment for transition programs for 
55.12 	children with a disability;
55.13 	(3) 47 percent of the costs of necessary travel between instructional sites by transition 
55.14 	program teachers of children with a disability but not including travel to and from local, 
55.15 	regional, district, state, or national career and technical student organization meetings;
55.16 	(4) 47 percent of the costs of necessary supplies for transition programs for children 
55.17 	with a disability but not to exceed an average of $47 in any one school year for each child 
55.18 	with a disability receiving these services;
55.19 	(5) for transition programs for children with disabilities provided by a contract 
55.20 	approved by the commissioner with public, private, or voluntary agencies other than a 
55.21 	Minnesota school district or cooperative center, in place of programs provided by the 
55.22 	district, 52 percent of the difference between the amount of the contract and the basic 
55.23 	revenue of the district for that pupil for the fraction of the school day the pupil receives 
55.24 	services under the contract;
55.25 	(6) for transition programs for children with disabilities provided by a contract 
55.26 	approved by the commissioner with public, private, or voluntary agencies other than a 
55.27 	Minnesota school district or cooperative center, that are supplementary to a full educational 
55.28 	program provided by the school district, 52 percent of the amount of the contract; and
55.29 	(7) for a contract approved by the commissioner with another Minnesota school 
55.30 	district or cooperative center for vocational evaluation services for children with a 
55.31 	disability for children that are not yet enrolled in grade 12, 52 percent of the amount 
55.32 	of the contract.
55.33 	(b) If requested by a school district for transition programs during the base year for 
55.34 	less than the full school year, the commissioner may adjust the base revenue to reflect 
56.1 	the expenditures that would have occurred during the base year had the program been 
56.2 	operated for the full year.

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

56.4 	Sec. 4. Minnesota Statutes 2006, section 124D.65, subdivision 6, is amended to read:
56.5 		Subd. 6.Participation of nonpublic school pupils. In counting the number of 
56.6 	pupils of limited English proficiency for purposes of this section, districts may include 
56.7 	pupils of limited English proficiency who attend nonpublic schools in the district. A 
56.8 	district which counts those pupils and receives aid pursuant to this section must offer 
56.9 	those pupils the same programs on the same terms that it offers to pupils of limited 
56.10 	English proficiency who attend the public school. A program provided for a nonpublic 
56.11 	school pupil pursuant to this subdivision mustmay be provided at a public school or, a 
56.12 	neutral site as defined in section 123B.41, subdivision 13, the nonpublic school, or any 
56.13 	other suitable location. Nonpublic school pupils served by a district's educational program 
56.14 	for pupils of limited English proficiency must be counted for average daily membership 
56.15 	pursuant to sections 126C.01, subdivisions 6 to 8, and 126C.19, subdivisions 1 to 4. 

56.16 	Sec. 5. Minnesota Statutes 2006, section 125A.11, subdivision 1, is amended to read:
56.17 		Subdivision 1.Nonresident tuition rate; other costs. (a) For fiscal year 2006, 
56.18 	when a school district provides instruction and services outside the district of residence, 
56.19 	board and lodging, and any tuition to be paid, shall be paid by the district of residence. 
56.20 	The tuition rate to be charged for any child with a disability, excluding a pupil for whom 
56.21 	tuition is calculated according to section 127A.47, subdivision 7, paragraph (d), must be 
56.22 	the sum of (1) the actual cost of providing special instruction and services to the child 
56.23 	including a proportionate amount for special transportation and unreimbursed building 
56.24 	lease and debt service costs for facilities used primarily for special education, plus (2) 
56.25 	the amount of general education revenue and referendum aid attributable to the pupil, 
56.26 	minus (3) the amount of special education aid for children with a disability received 
56.27 	on behalf of that child, minus (4) if the pupil receives special instruction and services 
56.28 	outside the regular classroom for more than 60 percent of the school day, the amount of 
56.29 	general education revenue and referendum aid, excluding portions attributable to district 
56.30 	and school administration, district support services, operations and maintenance, capital 
56.31 	expenditures, and pupil transportation, attributable to that pupil for the portion of time 
56.32 	the pupil receives special instruction and services outside of the regular classroom. If 
56.33 	the boards involved do not agree upon the tuition rate, either board may apply to the 
56.34 	commissioner to fix the rate. Notwithstanding chapter 14, the commissioner must then set 
57.1 	a date for a hearing or request a written statement from each board, giving each board 
57.2 	at least ten days' notice, and after the hearing or review of the written statements the 
57.3 	commissioner must make an order fixing the tuition rate, which is binding on both school 
57.4 	districts. General education revenue and referendum equalization aid attributable to a 
57.5 	pupil must be calculated using the resident district's average general education revenue 
57.6 	and referendum revenue equalization aid per adjusted pupil unit.
57.7 	(b) For fiscal year 2007 and later, when a school district provides special instruction 
57.8 	and services for a pupil with a disability as defined in section 125A.02 outside the district 
57.9 	of residence, excluding a pupil for whom an adjustment to special education aid is 
57.10 	calculated according to section 127A.47, subdivision 7, paragraph (e), special education 
57.11 	aid paid to the resident district must be reduced by an amount equal to (1) the actual 
57.12 	cost of providing special instruction and services to the pupil, including a proportionate 
57.13 	amount for special transportation and unreimbursed building lease and debt service 
57.14 	costs for facilities used primarily for special education, plus (2) the amount of general 
57.15 	education revenue and referendum equalization aid attributable to that pupil, minus (3) 
57.16 	the amount of special education aid for children with a disability received on behalf of 
57.17 	that child, minus (4) if the pupil receives special instruction and services outside the 
57.18 	regular classroom for more than 60 percent of the school day, the amount of general 
57.19 	education revenue and referendum equalization aid, excluding portions attributable to 
57.20 	district and school administration, district support services, operations and maintenance, 
57.21 	capital expenditures, and pupil transportation, attributable to that pupil for the portion of 
57.22 	time the pupil receives special instruction and services outside of the regular classroom. 
57.23 	General education revenue and referendum equalization aid attributable to a pupil must be 
57.24 	calculated using the resident district's average general education revenue and referendum 
57.25 	equalization aid per adjusted pupil unit. Special education aid paid to the district or 
57.26 	cooperative providing special instruction and services for the pupil must be increased 
57.27 	by the amount of the reduction in the aid paid to the resident district. Amounts paid 
57.28 	to cooperatives under this subdivision and section 127A.47, subdivision 7, shall be 
57.29 	recognized and reported as revenues and expenditures on the resident school district's 
57.30 	books of account under sections 123B.75 and 123B.76. If the resident district's special 
57.31 	education aid is insufficient to make the full adjustment, the remaining adjustment shall be 
57.32 	made to other state aid due to the district.
57.33 	(c) Notwithstanding paragraphs (a) and (b) and section 127A.47, subdivision 7, 
57.34 	paragraphs (d) and (e), a charter school where more than 30 percent of enrolled students 
57.35 	receive special education and related services, a care and treatment site approved under 
57.36 	section 125A.515, an intermediate district, a special education cooperative, or a school 
58.1 	district that served as the applicant agency for a group of school districts for federal 
58.2 	special education aids for fiscal year 2006 may apply to the commissioner for authority to 
58.3 	charge the resident district an additional amount to recover any remaining unreimbursed 
58.4 	costs of serving pupils with a disability. The application must include a description of the 
58.5 	costs and the calculations used to determine the unreimbursed portion to be charged to the 
58.6 	resident district. Amounts approved by the commissioner under this paragraph must be 
58.7 	included in the tuition billings or aid adjustments under paragraph (a) or (b), or section 
58.8 	127A.47, subdivision 7, paragraph (d) or (e), as applicable.
58.9 	(d) For purposes of this subdivision and section 127A.47, subdivision 7, paragraphs 
58.10 	(d) and (e), "general education revenue and referendum aid" means the sum of the general 
58.11 	education revenue according to section 126C.10, subdivision 1, excluding alternative 
58.12 	teacher compensation revenue, plus the referendum aid according to section 126C.17, 
58.13 	subdivision 7, as adjusted according to section 127A.47, subdivision 7, paragraphs (a) 
58.14 	to (c).

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

58.16 	Sec. 6. Minnesota Statutes 2006, section 125A.14, is amended to read:
58.17 	125A.14 SUMMER PROGRAMS EXTENDED SCHOOL YEAR.
58.18 	A district may provide summer programsextended school year services for children 
58.19 	with a disability living within the district and nonresident children temporarily placed in 
58.20 	the district pursuant to section 125A.15 or 125A.16. Prior to March 31 or 30 days after the 
58.21 	child with a disability is placed in the district, whichever is later, the providing district 
58.22 	shall give notice to the district of residence of any nonresident children temporarily placed 
58.23 	in the district pursuant to section 125A.15 or 125A.16, of its intention to provide these 
58.24 	programs. Notwithstanding any contrary provisions in sections 125A.15 and 125A.16, the 
58.25 	district providing the special instruction and services must apply for special education 
58.26 	aid for the summer program extended school year services. The unreimbursed actual cost 
58.27 	of providing the program for nonresident children with a disability, including the cost of 
58.28 	board and lodging, may be billed to the district of the child's residence and must be paid 
58.29 	by the resident district. Transportation costs must be paid by the district responsible 
58.30 	for providing transportation pursuant to section 125A.15 or 125A.16 and transportation 
58.31 	aid must be paid to that district. 

58.32 	Sec. 7. Minnesota Statutes 2006, section 125A.75, subdivision 1, is amended to read:
59.1 		Subdivision 1.Travel aid. The state must pay each district one-half of the sum 
59.2 	actually expended by a district, based on mileage, for necessary travel of essential 
59.3 	personnel providing home-based or community-based services to children with a disability 
59.4 	under age five and their families.

59.5 	Sec. 8. Minnesota Statutes 2006, section 125A.75, subdivision 4, is amended to read:
59.6 		Subd. 4.Program and aid approval. Before June 1 of each year, each district 
59.7 	providing special instruction and services to children with a disability, including children 
59.8 	eligible for Part C as defined in section 125A.02, subdivision 1, and section 125A.27, 
59.9 	subdivision 8,  must submit to the commissioner an application for approval of these 
59.10 	programs and their budgets for the next fiscal year. The application must include an 
59.11 	enumeration of the costs proposed as eligible for state aid pursuant to this section and of 
59.12 	the estimated number and grade level of children with a disability in the district who will 
59.13 	receive special instruction and services during the regular school year and in summer 
59.14 	school programs during the next fiscal year. The application must also include any 
59.15 	other information deemed necessary by the commissioner for the calculation of state aid 
59.16 	and for the evaluation of the necessity of the program, the necessity of the personnel 
59.17 	to be employed in the program, for determining the amount which the program will 
59.18 	receive from grants from federal funds, or special grants from other state sources, and 
59.19 	the program's compliance with the rules and standards of the Department of Education. 
59.20 	The commissioner shall review each application to determine whether the program and 
59.21 	the personnel to be employed in the program are actually necessary and essential to meet 
59.22 	the district's obligation to provide special instruction and services to children with a 
59.23 	disability pursuant to sections 125A.03 to 125A.24, 125A.259 to 125A.48, and 125A.65. 
59.24 	The commissioner shall not approve aid pursuant to this section for any program or for 
59.25 	the salary of any personnel determined to be unnecessary or unessential on the basis of 
59.26 	this review. The commissioner may withhold all or any portion of the aid for programs 
59.27 	which receive grants from federal funds, or special grants from other state sources. By 
59.28 	August 31 the commissioner shall approve, disapprove, or modify each application, and 
59.29 	notify each applying district of the action and of the estimated amount of aid for the 
59.30 	programs. The commissioner shall provide procedures for districts to submit additional 
59.31 	applications for program and budget approval during the fiscal year, for programs needed 
59.32 	to meet any substantial changes in the needs of children with a disability in the district. 
59.33 	Notwithstanding the provisions of section 127A.42, the commissioner may modify or 
59.34 	withdraw the program or aid approval and withhold aid pursuant to this section without 
59.35 	proceeding according to section 127A.42 at any time the commissioner determines that 
60.1 	the program does not comply with rules of the Department of Education or that any facts 
60.2 	concerning the program or its budget differ from the facts in the district's approved 
60.3 	application. 

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

60.5 	Sec. 9. Minnesota Statutes 2006, section 125A.75, is amended by adding a subdivision 
60.6 	to read:
60.7 		Subd. 9.Litigation costs; annual report. (a) By November 30 of each year, 
60.8 	a school district must annually report the district's special education litigation costs, 
60.9 	including attorney fees and costs of due process hearings, to the commissioner of 
60.10 	education, consistent with the Uniform Financial Accounting and Reporting Standards.
60.11 	(b) By January 15 of each year, the commissioner shall report school district special 
60.12 	education litigation costs to the house of representatives and the senate committees having 
60.13 	jurisdiction over kindergarten through grade 12 education finance.

60.14 	Sec. 10. Minnesota Statutes 2006, section 125A.76, subdivision 1, is amended to read:
60.15 		Subdivision 1.Definitions. For the purposes of this section, the definitions in this 
60.16 	subdivision apply.
60.17 	(a) "Base year" for fiscal year 1998 and later fiscal years means the second fiscal 
60.18 	year preceding the fiscal year for which aid will be paid.
60.19 	(b) "Basic revenue" has the meaning given it in section 126C.10, subdivision 2. 
60.20 	For the purposes of computing basic revenue pursuant to this section, each child with a 
60.21 	disability shall be counted as prescribed in section 126C.05, subdivision 1. 
60.22 	(c)(b) "Essential personnel" means teachers, cultural liaisons, related services, and 
60.23 	support services staff providing direct services to students. Essential personnel may also 
60.24 	include special education paraprofessionals or clericals providing support to teachers and 
60.25 	students by preparing paperwork and making arrangements related to special education 
60.26 	compliance requirements, including parent meetings and individual education plans.
60.27 	(d)(c) "Average daily membership" has the meaning given it in section 126C.05. 
60.28 	(e)(d) "Program growth factor" means 1.046 for fiscal year 2003, and 1.0 for fiscal 
60.29 	year 20042008 and later. 

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

60.31 	Sec. 11. Minnesota Statutes 2006, section 125A.76, subdivision 2, is amended to read:
61.1 		Subd. 2.Special education base revenue initial aid. (a) The special education 
61.2 	base revenueinitial aid equals the sum of the following amounts computed using base
61.3 	current year data:
61.4 	(1) 68 percent of the salary of each essential person employed in the district's 
61.5 	program for children with a disability during the fiscal year, whether the person is 
61.6 	employed by one or more districts or a Minnesota correctional facility operating on a 
61.7 	fee-for-service basis;
61.8 	(2) for the Minnesota State Academy for the Deaf or the Minnesota State Academy 
61.9 	for the Blind, 68 percent of the salary of each instructional aide assigned to a child 
61.10 	attending the academy, if that aide is required by the child's individual education plan;
61.11 	(3) for special instruction and services provided to any pupil by contracting with 
61.12 	public, private, or voluntary agencies other than school districts, in place of special 
61.13 	instruction and services provided by the district, 52 percent of the difference between 
61.14 	the amount of the contract and the amount of the basic revenue, as defined in section 
61.15 	126C.10, subdivision 2, special education aid, and any other aid earned on behalf of 
61.16 	the childthe general education revenue, excluding basic skills revenue and alternative 
61.17 	teacher compensation revenue, and referendum equalization aid attributable to a pupil, 
61.18 	calculated using the resident district's average general education revenue and referendum 
61.19 	equalization aid per adjusted pupil unit for the fraction of the school day the pupil receives 
61.20 	services under the contract. This includes children who are residents of the state, receive 
61.21 	services under this subdivision and subdivision 1, and are placed in a care and treatment 
61.22 	facility by court action in a state that does not have a reciprocity agreement with the 
61.23 	commissioner under section 125A.155 as provided for in section 125A.79, subdivision 8; 
61.24 	(4) for special instruction and services provided to any pupil by contracting for 
61.25 	services with public, private, or voluntary agencies other than school districts, that are 
61.26 	supplementary to a full educational program provided by the school district, 52 percent of 
61.27 	the amount of the contract for that pupil;
61.28 	(5) for supplies and equipment purchased or rented for use in the instruction of 
61.29 	children with a disability, an amount equal to 47 percent of the sum actually expended by 
61.30 	the district, or a Minnesota correctional facility operating on a fee-for-service basis, but 
61.31 	not to exceed an average of $47 in any one school year for each child with a disability 
61.32 	receiving instruction;
61.33 	(6) for fiscal years 1997 and later, special education base revenue shall include 
61.34 	amounts under clauses (1) to (5) for special education summer programs provided during 
61.35 	the base year for that fiscal year; and
62.1 	(7) for fiscal years 1999 and later, the cost of providing transportation services for 
62.2 	children with disabilities under section 123B.92, subdivision 1, paragraph (b), clause 
62.3 	(4); and
62.4 	(8) the district's transition-disabled program initial aid according to section 
62.5 	124D.454, subdivision 3. 
62.6 	The department shall establish procedures through the uniform financial accounting 
62.7 	and reporting system to identify and track all revenues generated from third-party billings 
62.8 	as special education revenue at the school district level; include revenue generated from 
62.9 	third-party billings as special education revenue in the annual cross-subsidy report; and 
62.10 	exclude third-party revenue from calculation of excess cost aid to the districts.
62.11 	(b) If requested by a school district operating a special education program during 
62.12 	the base year for less than the full fiscal year, or a school district in which is located a 
62.13 	Minnesota correctional facility operating on a fee-for-service basis for less than the full 
62.14 	fiscal year, the commissioner may adjust the base revenue to reflect the expenditures 
62.15 	that would have occurred during the base year had the program been operated for the 
62.16 	full fiscal year.
62.17 	(c) Notwithstanding paragraphs (a) and (b), the portion of a school district's base 
62.18 	revenue attributable to a Minnesota correctional facility operating on a fee-for-service 
62.19 	basis during the facility's first year of operating on a fee-for-service basis shall be 
62.20 	computed using current year data.

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

62.22 	Sec. 12. Minnesota Statutes 2006, section 125A.76, subdivision 4, is amended to read:
62.23 		Subd. 4.State total special education aid. The state total special education aid 
62.24 	for fiscal year 2004 equals $530,642,000. The state total special education aid for fiscal 
62.25 	year 2005 equals $529,164,000 $666,507,000 for fiscal year 2007, $707,138,000 for 
62.26 	fiscal year 2008, $739,655,000 for fiscal year 2009, $775,973,000 for fiscal year 2010, 
62.27 	and $814,222,000 for fiscal year 2011. The state total special education aid for later 
62.28 	fiscal years equals:
62.29 	(1) the state total special education aid for the preceding fiscal year; times
62.30 	(2) the program growth factor; times
62.31 	(3) the greater of one, or the ratio of the state total average daily membership for the 
62.32 	current fiscal year to the state total average daily membership for the preceding fiscal year.

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

63.1 	Sec. 13. Minnesota Statutes 2006, section 125A.76, subdivision 5, is amended to read:
63.2 		Subd. 5.School district special education aid. (a) A school district's special 
63.3 	education aid for fiscal year 20002008 and later equals the state total special education 
63.4 	aid, minus the amount determined under paragraphs (b) and (c), times the ratio of the 
63.5 	district's adjustedinitial special education base revenueaid to the state total adjusted
63.6 	initial special education base revenue aid. If the commissioner of education modifies 
63.7 	its rules for special education in a manner that increases a district's special education 
63.8 	obligations or service requirements, the commissioner shall annually increase each 
63.9 	district's special education aid by the amount necessary to compensate for the increased 
63.10 	service requirements. The additional aid equals the cost in the current year attributable to 
63.11 	rule changes not reflected in the computation of special education base revenue, multiplied 
63.12 	by the appropriate percentages from subdivision 2.
63.13 	(b) Notwithstanding paragraph (a), if the special education base revenue for a 
63.14 	district equals zero, the special education aid equals the amount computed according 
63.15 	to subdivision 2 using current year data.
63.16 	(c) Notwithstanding paragraphs (a) and (b), if the special education base revenue for 
63.17 	a district is greater than zero, and the base year amount for the district under subdivision 
63.18 	2, paragraph (a), clause (7), equals zero, the special education aid equals the sum of the 
63.19 	amount computed according to paragraph (a), plus the amount computed according to 
63.20 	subdivision 2, paragraph (a), clause (7), using current year data.
63.21 	(d) A charter school under section 124D.10 shall generate state special education 
63.22 	aid based on current year expenditures for its first four years of operation and only in its 
63.23 	fifth and later years shall paragraphs (a), (b), and (c) apply. 

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

63.25 	Sec. 14. Minnesota Statutes 2006, section 125A.79, subdivision 1, is amended to read:
63.26 		Subdivision 1.Definitions. For the purposes of this section, the definitions in this 
63.27 	subdivision apply.
63.28 	(a) "Unreimbursed special education cost" means the sum of the following:
63.29 	(1) expenditures for teachers' salaries, contracted services, supplies, equipment, and 
63.30 	transportation services eligible for revenue under section 125A.76; plus
63.31 	(2) expenditures for tuition bills received under sections 125A.03 to 125A.24 and 
63.32 	125A.65 for services eligible for revenue under section 125A.76, subdivision 2; minus
63.33 	(3) revenue for teachers' salaries, contracted services, supplies, and equipment under 
63.34 	section 125A.76; minus
64.1 	(4) tuition receipts under sections 125A.03 to 125A.24 and 125A.65 for services 
64.2 	eligible for revenue under section 125A.76, subdivision 2.
64.3 	(b) "General revenue" means the sum of the general education revenue according to 
64.4 	section 126C.10, subdivision 1, excluding alternative teacher compensation revenue, plus 
64.5 	the total qualifying referendum revenue specified in paragraph (e) minus transportation 
64.6 	sparsity revenue minus total operating capital revenue.
64.7 	(c) "Average daily membership" has the meaning given it in section 126C.05.
64.8 	(d) "Program growth factor" means 1.02 for fiscal year 2003, and 1.0 for fiscal 
64.9 	year 20042008 and later.
64.10 	(e) "Total qualifying referendum revenue" means two-thirds of the district's total 
64.11 	referendum revenue as adjusted according to section 127A.47, subdivision 7, paragraphs 
64.12 	(a) to (c), for fiscal year 2006, one-third of the district's total referendum revenue for fiscal 
64.13 	year 2007, and none of the district's total referendum revenue for fiscal year 2008 and later.

64.14 	Sec. 15. Minnesota Statutes 2006, section 125A.79, subdivision 5, is amended to read:
64.15 		Subd. 5.Initial excess cost aid. For fiscal years 20022008 and later, a district's 
64.16 	initial excess cost aid equals the greatestgreater of:
64.17 	(1) 75 percent of the difference between (i) the district's unreimbursed special 
64.18 	education cost and (ii) 4.36 percent of the district's general revenue;  or
64.19 	(2) 70 percent of the difference between (i) the increase in the district's unreimbursed 
64.20 	special education cost between the base year as defined in section 125A.76, subdivision 1, 
64.21 	and the current year and (ii) 1.6 percent of the district's general revenue; or
64.22 	(3) zero.

64.23 	Sec. 16. Minnesota Statutes 2006, section 125A.79, subdivision 6, is amended to read:
64.24 		Subd. 6.State total special education excess cost aid. The state total special 
64.25 	education excess cost aid for fiscal year 2005 equals $91,811,000 $107,384,000 for 
64.26 	fiscal year 2007, $110,173,000 for fiscal year 2008, $112,641,000 for fiscal year 2009, 
64.27 	$112,791,000 for fiscal year 2010, and $113,138,000 for fiscal year 2011. The state 
64.28 	total special education excess cost aid equals $103,600,000 for fiscal year 2006 and 
64.29 	$104,700,000 for fiscal year 2007. The state total special education excess cost aid for 
64.30 	fiscal year 2008 and later fiscal years equals:
64.31 	(1) the state total special education excess cost aid for the preceding fiscal year; times
64.32 	(2) the program growth factor; times
64.33 	(3) the greater of one, or the ratio of the state total average daily membership for the 
64.34 	current fiscal year to the state total average daily membership for the preceding fiscal year.

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

65.2 	Sec. 17. Minnesota Statutes 2006, section 125A.79, subdivision 8, is amended to read:
65.3 		Subd. 8.Out-of-state tuition. For children who are residents of the state, receive 
65.4 	services under section 125A.76, subdivisions 1 and 2, and are placed in a care and 
65.5 	treatment facility by court action in a state that does not have a reciprocity agreement 
65.6 	with the commissioner under section 125A.155, the resident school district shall submit 
65.7 	the balance of the tuition bills, minus the amount of the basic revenue, as defined by 
65.8 	section 126C.10, subdivision 2, of the district for the child and the general education 
65.9 	revenue, excluding basic skills revenue and alternative teacher compensation revenue, 
65.10 	and referendum equalization aid attributable to the pupil, calculated using the resident 
65.11 	district's average general education revenue and referendum equalization aid per adjusted 
65.12 	pupil unit minus  the special education aid, and any other aid earned on behalf of the child
65.13 	contracted services base revenue attributable to the pupil. 

65.14 	Sec. 18. Minnesota Statutes 2006, section 127A.47, subdivision 7, is amended to read:
65.15 		Subd. 7.Alternative attendance programs. The general education aid and special 
65.16 	education aid for districts must be adjusted for each pupil attending a nonresident district 
65.17 	under sections 123A.05 to 123A.08, 124D.03, 124D.06, 124D.08, and 124D.68. The 
65.18 	adjustments must be made according to this subdivision.
65.19 	(a) General education aid paid to a resident district must be reduced by an amount 
65.20 	equal to the referendum equalization aid attributable to the pupil in the resident district.
65.21 	(b) General education aid paid to a district serving a pupil in programs listed in this 
65.22 	subdivision must be increased by an amount equal to the referendum equalization aid 
65.23 	attributable to the pupil in the nonresident district.
65.24 	(c) If the amount of the reduction to be made from the general education aid of the 
65.25 	resident district is greater than the amount of general education aid otherwise due the 
65.26 	district, the excess reduction must be made from other state aids due the district.
65.27 	(d) For fiscal year 2006, the district of residence must pay tuition to a district or an 
65.28 	area learning center, operated according to paragraph (f), providing special instruction and 
65.29 	services to a pupil with a disability, as defined in section 125A.02, or a pupil, as defined in 
65.30 	section 125A.51, who is enrolled in a program listed in this subdivision. The tuition must 
65.31 	be equal to (1) the actual cost of providing special instruction and services to the pupil, 
65.32 	including a proportionate amount for special transportation and unreimbursed building 
65.33 	lease and debt service costs for facilities used primarily for special education, minus (2) if 
65.34 	the pupil receives special instruction and services outside the regular classroom for more 
66.1 	than 60 percent of the school day, the amount of general education revenue and referendum 
66.2 	equalization aid attributable to that pupil for the portion of time the pupil receives special 
66.3 	instruction and services outside of the regular classroom, excluding portions attributable to 
66.4 	district and school administration, district support services, operations and maintenance, 
66.5 	capital expenditures, and pupil transportation, minus (3) special education aid attributable 
66.6 	to that pupil, that is received by the district providing special instruction and services. 
66.7 	For purposes of this paragraph, general education revenue and referendum equalization 
66.8 	aid attributable to a pupil must be calculated using the serving district's average general 
66.9 	education revenue and referendum equalization aid per adjusted pupil unit.
66.10 	(e) For fiscal year 2007 and later, special education aid paid to a resident district 
66.11 	must be reduced by an amount equal to (1) the actual cost of providing special instruction 
66.12 	and services, including special transportation and unreimbursed building lease and debt 
66.13 	service costs for facilities used primarily for special education, for a pupil with a disability, 
66.14 	as defined in section 125A.02, or a pupil, as defined in section 125A.51, who is enrolled 
66.15 	in a program listed in this subdivision, minus (2) if the pupil receives special instruction 
66.16 	and services outside the regular classroom for more than 60 percent of the school day, 
66.17 	the amount of general education revenue and referendum equalization aid attributable 
66.18 	to that pupil for the portion of time the pupil receives special instruction and services 
66.19 	outside of the regular classroom, excluding portions attributable to district and school 
66.20 	administration, district support services, operations and maintenance, capital expenditures, 
66.21 	and pupil transportation, minus (3) special education aid attributable to that pupil, that is 
66.22 	received by the district providing special instruction and services. For purposes of this 
66.23 	paragraph, general education revenue and referendum equalization aid attributable to a 
66.24 	pupil must be calculated using the serving district's average general education revenue 
66.25 	and referendum equalization aid per adjusted pupil unit. Special education aid paid to the 
66.26 	district or cooperative providing special instruction and services for the pupil, or to the 
66.27 	fiscal agent district for a cooperative, must be increased by the amount of the reduction 
66.28 	in the aid paid to the resident district. If the resident district's special education aid is 
66.29 	insufficient to make the full adjustment, the remaining adjustment shall be made to other 
66.30 	state aids due to the district.
66.31 	(f) An area learning center operated by a service cooperative, intermediate district, 
66.32 	education district, or a joint powers cooperative may elect through the action of the 
66.33 	constituent boards to charge the resident district tuition for pupils rather than to have the 
66.34 	general education revenue paid to a fiscal agent school district. Except as provided in 
66.35 	paragraph (d) or (e), the district of residence must pay tuition equal to at least 90 percent 
66.36 	of the district average general education revenue per pupil unit minus an amount equal to 
67.1 	the product of the formula allowance according to section 126C.10, subdivision 2, times 
67.2 	.0485, calculated without basic skills revenue and transportation sparsity revenue, times 
67.3 	the number of pupil units for pupils attending the area learning center, plus the amount of 
67.4 	compensatory revenue generated by pupils attending the area learning center.

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

67.6 	Sec. 19. Laws 2005, First Special Session chapter 5, article 3, section 18, subdivision 
67.7 	2, as amended by Laws 2006, chapter 282, article 7, section 12, is amended to read:
67.8 		Subd. 2.Special education; regular. For special education aid under Minnesota 
67.9 	Statutes, section 125A.75:

67.10		$
	559,485,000
	.....
	2006
	
67.11
67.12		$
	528,106,000
652,791,000
	.....
	2007
	
67.13 	The 2006 appropriation includes $83,078,000 for 2005 and $476,407,000 for 2006.
67.14 	The 2007 appropriation includes $52,934,000 for 2006 and $475,172,000
67.15 	$599,857,000 for 2007.

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

67.17 	Sec. 20. Laws 2005, First Special Session chapter 5, article 3, section 18, subdivision 
67.18 	5, as amended by Laws 2006, chapter 282, article 7, section 15, is amended to read:
67.19 		Subd. 5.Special education; excess costs. For excess cost aid under Minnesota 
67.20 	Statutes, section 125A.79, subdivision 7:

67.21		$
	106,453,000
	.....
	2006
	
67.22
67.23		$
	104,333,000
106,120,000
	.....
	2007
	
67.24 	The 2006 appropriation includes $37,455,000 for 2005 and $68,998,000 for 2006.
67.25 	The 2007 appropriation includes $34,602,000 for 2006 and $69,731,000 $71,518,000
67.26 	for 2007.

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

67.28 	Sec. 21. Laws 2005, First Special Session chapter 5, article 3, section 18, subdivision 
67.29 	6, as amended by Laws 2006, chapter 282, article 7, section 16, is amended to read:
67.30 		Subd. 6.Transition for disabled students. For aid for transition programs for 
67.31 	children with disabilities under Minnesota Statutes, section 124D.454:

68.1		$
	9,300,000
	.....
	2006
	
68.2
68.3		$
	8,781,000
9,473,000
	.....
	2007
	
68.4 	The 2006 appropriation includes $1,380,000 for 2005 and $7,920,000 for 2006.
68.5 	The 2007 appropriation includes $880,000 for 2006 and $7,901,000 $8,593,000
68.6 	for 2007.

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

68.8 	Sec. 22. Laws 2006, chapter 263, article 3, section 15, is amended to read:
68.9 	Sec. 15. SPECIAL EDUCATION TUITION BILLING FOR FISCAL YEARS 
68.10 	2006 AND, 2007, AND 2008.
 68.11 	(a) Notwithstanding Minnesota Statutes, sections 125A.11, subdivision 1, paragraph 
68.12 	(a), and 127A.47, subdivision 7, paragraph (d), for fiscal year 2006 an intermediate 
68.13 	district, special education cooperative, or school district that served as an applicant 
68.14 	agency for a group of school districts for federal special education aids for fiscal year 
68.15 	2006 is not subject to the uniform special education tuition billing calculations, but may 
68.16 	instead continue to bill the resident school districts for the actual unreimbursed costs 
68.17 	of serving pupils with a disability as determined by the intermediate district, special 
68.18 	education cooperative, or school district.
68.19 	(b) Notwithstanding Minnesota Statutes, section 125A.11, subdivision 1, paragraph 
68.20 	(c), for fiscal year 2007 only, an applicant districtagency exempted from the uniform 
68.21 	special education tuition billing calculations for fiscal year 2006 under paragraph (a) 
68.22 	may apply to the commissioner for a waiveran exemption from the uniform special 
68.23 	education tuition calculations and aid adjustments under Minnesota Statutes, sections 
68.24 	125A.11, subdivision 1, paragraph (b), and 127A.47, subdivision 7, paragraph (e). The 
68.25 	commissioner must grant the waiverexemption within 30 days of receiving the following 
68.26 	information from the intermediate district, special education cooperative, or school district:
68.27 	(1) a detailed description of the applicant district's methodology for calculating 
68.28 	special education tuition for fiscal years 2006 and 2007, as required by the applicant 
68.29 	district to recover the full cost of serving pupils with a disability;
68.30 	(2) sufficient data to determine the total amount of special education tuition actually 
68.31 	charged for each student with a disability, as required by the applicant district to recover 
68.32 	the full cost of serving pupils with a disability in fiscal year 2006; and
68.33 	(3) sufficient data to determine the amount that would have been charged for each 
68.34 	student for fiscal year 2006 using the uniform tuition billing methodology according 
69.1 	to Minnesota Statutes, sections 125A.11, subdivision 1, or 127A.47, subdivision 7, 
69.2 	as applicable.
69.3 	(c) Notwithstanding Minnesota Statutes, section 125A.11, subdivision 1, paragraph 
69.4 	(c), for fiscal year 2008 only, an agency granted an exemption from the uniform special 
69.5 	education tuition billing calculations and aid adjustments for fiscal year 2007 under 
69.6 	paragraph (b) may apply to the commissioner for a one-year extension of the exemption 
69.7 	granted under paragraph (b). The commissioner must grant the extension within 30 days 
69.8 	of receiving the request.

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

69.10 	Sec. 23. TRANSITION PROGRAM - DISABLED REVENUE FISCAL YEAR 
69.11 	2007.
 69.12 	Notwithstanding Minnesota Statutes, section 124D.454, subdivision 5, the state total 
69.13 	transition program - disabled revenue entitlement for fiscal year 2007 is $9,546,000.

69.14 	Sec. 24. APPROPRIATIONS.
 69.15 		Subdivision 1.Department of Education. The sums indicated in this section are 
69.16 	appropriated from the general fund to the Department of Education for the fiscal years 
69.17 	designated.
69.18 		Subd. 2.Special education; regular. For special education aid under Minnesota 
69.19 	Statutes, section 125A.75:

69.20		$
	703,075,000
	.....
	2008
	
69.21		$
	736,403,000
	.....
	2009
	
69.22 	The 2008 appropriation includes $66,650,000 for 2007 and $636,425,000 for 2008.
69.23 	The 2009 appropriation includes $70,713,000 for 2008 and $665,690,000 for 2009.
69.24 		Subd. 3.Aid for children with disabilities. For aid under Minnesota Statutes, 
69.25 	section 125A.75, subdivision 3, for children with disabilities placed in residential facilities 
69.26 	within the district boundaries for whom no district of residence can be determined:

69.27		$
	1,538,000
	.....
	2008
	
69.28		$
	1,729,000
	.....
	2009
	
69.29 	If the appropriation for either year is insufficient, the appropriation for the other 
69.30 	year is available.
69.31 		Subd. 4.Travel for home-based services. For aid for teacher travel for home-based 
69.32 	services under Minnesota Statutes, section 125A.75, subdivision 1:

70.1		$
	254,000
	.....
	2008
	
70.2		$
	284,000
	.....
	2009
	
70.3 	The 2008 appropriation includes $22,000 for 2007 and $232,000 for 2008.
70.4 	The 2009 appropriation includes $25,000 for 2008 and $259,000 for 2009.
70.5 		Subd. 5.Special education; excess costs. For excess cost aid under Minnesota 
70.6 	Statutes, section 125A.79, subdivision 7:

70.7		$
	109,242,000
	.....
	2008
	
70.8		$
	111,816,000
	.....
	2009
	
70.9 	The 2008 appropriation includes $35,866,000 for 2007 and $73,376,000 for 2008.
70.10 	The 2009 appropriation includes $36,797,000 for 2008 and $75,019,000 for 2009.
70.11 		Subd. 6.Transition for disabled students. For aid for transition programs for 
70.12 	children with disabilities under Minnesota Statutes, section 124D.454:

70.13		$
	955,000
	.....
	2008
	
70.14 	The 2008 appropriation includes $955,000 for 2007 and $0 for 2008.
70.15 		Subd. 7.Court-placed special education revenue. For reimbursing serving 
70.16 	school districts for unreimbursed eligible expenditures attributable to children placed in 
70.17 	the serving school district by court action under Minnesota Statutes, section 125A.79, 
70.18 	subdivision 4:

70.19		$
	72,000
	.....
	2008
	
70.20		$
	74,000
	.....
	2009
	
70.21 		Subd. 8.Special education out-of-state tuition. For special education out-of-state 
70.22 	tuition according to Minnesota Statutes, section 125A.79, subdivision 8:

70.23		$
	250,000
	.....
	2008
	
70.24		$
	250,000
	.....
	2009

70.25 	Sec. 25.  REPEALER.
 70.26 	(a) Minnesota Statutes 2006, sections 125A.10; and 125A.75, subdivision 6, are 
70.27 	repealed.
70.28 	(b) Minnesota Statutes 2006, sections 124D.454, subdivisions 4, 5, 6, and 7; and 
70.29 	125A.76, subdivision 3, are repealed effective for revenue for fiscal year 2008.

71.1 	ARTICLE 4
71.2 	FACILITIES AND TECHNOLOGY

71.3 	Section 1. Minnesota Statutes 2006, section 123A.44, is amended to read:
71.4 	123A.44 CITATION.
71.5 	Sections 123A.441 to 123A.446 may be cited as the "Cooperative Secondary
71.6 	Facilities Grant Act." 

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

71.8 	Sec. 2. Minnesota Statutes 2006, section 123A.441, is amended to read:
71.9 	123A.441 POLICY AND PURPOSE.
71.10 	Because of the rates of decline in school-aged population, population shifts and 
71.11 	economic changes that the state has experienced in recent years and anticipates in future 
71.12 	years, and because in some instances local districts have not, and will not be able to 
71.13 	provide the required construction funds through local property taxes, the purpose of the 
71.14 	cooperative secondary facilities grant program is to provide an incentive to encourage 
71.15 	cooperation in making available to all secondary students those educational programs, 
71.16 	services and facilities that are most efficiently and effectively provided by a cooperative 
71.17 	effort of several school districts. The policy and purpose of sections 123A.442 to 
71.18 	123A.446 is to use the credit of the state, to a limited degree, to provide grants to 
71.19 	cooperating groups of districts to improve and expand the educational opportunities and 
71.20 	facilities available to their secondary students. 

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

71.22 	Sec. 3. Minnesota Statutes 2006, section 123A.442, is amended to read:
71.23 	123A.442 APPROVAL AUTHORITY; APPLICATION FORMS.
71.24 		Subdivision 1.Approval by commissioner. To the extent money is available, the 
71.25 	commissioner may approve projects from applications submitted under section 123A.443. 
71.26 	The grant money must be used only to acquire, construct, remodel or improve the building 
71.27 	or site of a cooperative secondary facility under contracts to be entered into within 15 
71.28 	months after the date on which each grant is awarded. 
71.29 		Subd. 2.Cooperation and combination. Districts that have not already 
71.30 	consolidated and receive a cooperative secondary facilities grant after May 1, 1991, shall:
72.1 	(1) submit a consolidation plan as set forth in under section 123A.36 123A.48 for 
72.2 	approval by the State Board of Education before December 31, 1999, or Department of 
72.3 	Education after December 30, 1999; and 
72.4 	(2) hold a referendum on the question of combination consolidation no later than 
72.5 	four years after a grant is awarded under subdivision 1.
72.6 	The districts are eligible for cooperation and combination consolidation revenue 
72.7 	under section 123A.39, subdivision 3 123A.485. 
72.8 		Subd. 3.Consolidated districts. A school district that has consolidated with 
72.9 	another school district since July 1, 1980, is eligible for a cooperative facilities grant.

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

72.11 	Sec. 4. Minnesota Statutes 2006, section 123A.443, is amended to read:
72.12 	123A.443 GRANT APPLICATION PROCESS.
72.13 		Subdivision 1.Qualification. Any group of districts or a consolidated district
72.14 	that meets the criteria required under subdivision 2 may apply for an incentive grant for 
72.15 	construction of a new secondary facility or for remodeling and improving an existing 
72.16 	secondary facility. A grant for new construction must not exceed the lesser of $5,000,000
72.17 	$20,000,000 or 75 percent of the approved construction costs of a cooperative secondary
72.18 	education facility. A grant for remodeling and improving an existing facility must not 
72.19 	exceed $200,000 the lesser of $10,000,000, or 75 percent of the approved remodeling 
72.20 	costs.
72.21 		Subd. 2.Review by commissioner. (a) A group of districts or a consolidated district 
72.22 	that submits an application for a grant must submit a proposal to the commissioner for 
72.23 	review and comment under section 123B.71. The commissioner shall prepare a review 
72.24 	and comment on the proposed facility by July 1 of an odd-numbered year, regardless of 
72.25 	the amount of the capital expenditure required to acquire, construct, remodel or improve 
72.26 	the secondary facility. The commissioner shall not approve an application for an incentive 
72.27 	grant for any secondary facility unless the facility receives a favorable review and 
72.28 	comment under section 123B.71 and the following criteria are met: 
72.29 	(1) the applicant is a consolidated district or a minimum of two or more districts, 
72.30 	with kindergarten to grade 12 enrollments in each district of no more than 1,200 pupils, 
72.31 	enter that have entered into a joint powers agreement;
72.32 	(2) for a group of districts, a joint powers board representing all participating 
72.33 	districts is established under section 471.59 to govern the cooperative secondary facility; 
73.1 	(3) the planned secondary facility will result in the joint powers district meeting the 
73.2 	requirements of Minnesota Rules, parts 3500.2010 and 3500.2110;
73.3 	(4) at least 198 pupils would be served in grades 10 to 12, 264 pupils would be 
73.4 	served in grades 9 to 12, or 396 pupils would be served in grades 7 to 12;
73.5 	(5)(3) for a group of districts, no more than one superintendent is employed by the 
73.6 	joint powers board as a result of the cooperative secondary facility agreement;
73.7 	(6) (4) a statement of need is submitted, that may include reasons why the current 
73.8 	secondary facilities are inadequate, unsafe or inaccessible to persons with disabilities;
73.9 	(7) (5) an educational plan is prepared, that includes input from both community and 
73.10 	professional staff;
73.11 	(8) (6) for a group of districts, a combined seniority list for all participating districts 
73.12 	is developed by the joint powers board;
73.13 	(9) (7) for a group of districts, an education program is developed that provides for 
73.14 	more learning opportunities and course offerings, including the offering of advanced 
73.15 	placement courses, for students than is currently available in any single member district;
73.16 	(10) (8) a plan is developed for providing instruction of any resident students in 
73.17 	other districts when distance to the secondary education facility makes attendance at the 
73.18 	facility unreasonably difficult or impractical; and
73.19 	(11) (9) for a secondary facility, the joint powers board established under clause (2) 
73.20 	discusses with technical colleges located in the area how vocational education space in 
73.21 	the cooperative secondary facility could be jointly used for secondary and postsecondary 
73.22 	purposes.
73.23 	(b) To the extent possible, the joint powers board is encouraged to provide for 
73.24 	severance pay or for early retirement incentives under section 122A.48, for any teacher 
73.25 	or administrator, as defined under section 122A.40, subdivision 1, who is placed on 
73.26 	unrequested leave as a result of the cooperative secondary facility agreement. 
73.27 	(c) For the purpose of paragraph (a), clause (8) (6), each district must be considered 
73.28 	to have started school each year on the same date.
73.29 	(d) The districts may develop a plan that provides for the location of social service, 
73.30 	health, and other programs serving pupils and community residents within the cooperative 
73.31 	secondary facility. The commissioner shall consider this plan when preparing a review 
73.32 	and comment on the proposed facility.
73.33 	(e) The districts must schedule and conduct a meeting on library services. The 
73.34 	school districts, in cooperation with the regional public library system and its appropriate 
73.35 	member libraries, must discuss the possibility of including jointly operated library services 
73.36 	at the cooperative secondary facility.
74.1 	(f) The board of a district that has reorganized under section 123A.37 or 123A.48
74.2 	and that is applying for a grant for remodeling or improving an existing facility may act in 
74.3 	the place of a joint powers board to meet the criteria of this subdivision. 
74.4 		Subd. 3.Reorganizing districts. A district that is a member of a joint powers 
74.5 	board established under subdivision 2 and that is planning to reorganize under section 
74.6 	123A.45, 123A.46, or 123A.48 must notify the joint powers board one year in advance of 
74.7 	the effective date of the reorganization. Notwithstanding section 471.59 or any other law 
74.8 	to the contrary, the board of a district that reorganizes under section 123A.45, 123A.46, or 
74.9 	123A.48 may appoint representatives to the joint powers board who will serve on the joint 
74.10 	powers board for two years after the effective date of the reorganization if authorized in 
74.11 	the agreement establishing the joint powers board to govern the cooperative secondary
74.12 	facility. These representatives shall have the same powers as representatives of any other 
74.13 	school district under the joint powers agreement. 
74.14 		Subd. 4.District procedures. A joint powers board of a secondary district 
74.15 	established under subdivision 2 or a school board of a reorganized district that intends 
74.16 	to apply for a grant must adopt a resolution stating the proposed costs of the project, 
74.17 	the purpose for which the costs are to be incurred, and an estimate of the dates when 
74.18 	the facilities for which the grant is requested will be contracted for and completed. 
74.19 	Applications for the state grants must be accompanied by (a) a copy of the resolution, (b) 
74.20 	a certificate by the clerk and treasurer of the joint powers board showing the current 
74.21 	outstanding indebtedness of each member district, and (c) a certificate by the county 
74.22 	auditor of each county in which a portion of the joint powers district lies showing the 
74.23 	information in the auditor's official records that is required to be used in computing the 
74.24 	debt limit of the district under section 475.53, subdivision 4. The clerk's and treasurer's 
74.25 	certificate must show, as to each outstanding bond issue of each member district, the 
74.26 	amount originally issued, the purpose for which issued, the date of issue, the amount 
74.27 	remaining unpaid as of the date of the resolution, and the interest rates and due dates 
74.28 	and amounts of principal thereon. Applications and necessary data must be in the 
74.29 	form prescribed by the commissioner and the rules of the State Board of Education 
74.30 	before December 31, 1999, and after December 30, 1999, in the form prescribed by the 
74.31 	commissioner. Applications must be received by the commissioner by September 1 of an 
74.32 	odd-numbered year. When an application is received, the commissioner shall obtain from 
74.33 	the commissioner of revenue, and from the Public Utilities Commission when required, 
74.34 	the information in their official records that is required to be used in computing the debt 
74.35 	limit of the joint powers district under section 475.53, subdivision 4. 
75.1 		Subd. 5.Award of grants. By November 1 of the odd-numbered year, the 
75.2 	commissioner shall examine and consider all applications for grants, and if any district is 
75.3 	found not qualified, the commissioner shall promptly notify that board.
75.4 	A grant award is subject to verification by the district as specified in subdivision 
75.5 	8. A grant award for a new facility must not be made until the site of the secondary
75.6 	facility has been determined. A grant award to remodel or improve an existing facility 
75.7 	must not be made until the districts have reorganized. If the total amount of the approved 
75.8 	applications exceeds the amount that is or can be made available, the commissioner shall 
75.9 	first award grants to districts that will close at least one existing school building, and then, 
75.10 	to the extent funds remain, allot the available amount equally between the any other
75.11 	approved applicant districts. The commissioner shall promptly certify to each qualified 
75.12 	district the amount, if any, of the grant awarded to it.
75.13 		Subd. 6.Collocation grant. A group of districts that receives a grant for a new 
75.14 	facility under subdivision 4 is also eligible to receive an additional grant in the amount of 
75.15 	$1,000,000. To receive the additional grant, the group of districts must develop a plan 
75.16 	under subdivision 2, paragraph (d), that provides for the location of a significant number 
75.17 	of noneducational student and community service programs within the cooperative 
75.18 	secondary facility.
75.19 		Subd. 7.Referendum; bond issue. Within 180 days after being awarded a grant 
75.20 	for a new facility under subdivision 5, the joint powers board must submit the question 
75.21 	of authorizing the borrowing of funds for the secondary facility to the voters of the joint 
75.22 	powers district at a special election, which may be held in conjunction with the annual
75.23 	general election of the school board members of the member districts. The question 
75.24 	submitted must state the total amount of funding needed from all sources. A majority of 
75.25 	those voting in the affirmative on the question is sufficient to authorize the joint powers 
75.26 	board to accept the grant and to issue the bonds on public sale in accordance with
75.27 	according to chapter 475. The clerk of the joint powers board must certify the vote of 
75.28 	the bond election to the commissioner. If the question is approved by the voters, the 
75.29 	commissioner shall notify the approved applicant districts that the grant amount certified 
75.30 	under subdivision 5 is available and appropriated for payment under this subdivision. 
75.31 	If a majority of those voting on the question do not vote in the affirmative, the grant 
75.32 	must be canceled.
75.33 		Subd. 8.Contract. Each grant must be evidenced by a contract between the board 
75.34 	and the state acting through the commissioner. The contract obligates the state to pay to 
75.35 	the board an amount computed according to subdivision 5, and according to a schedule, 
75.36 	and terms and conditions acceptable to the commissioner of finance.
76.1 		Subd. 9.Consolidation. A group of districts that operates a cooperative secondary
76.2 	facility that was acquired, constructed, remodeled, or improved under this section and 
76.3 	implements consolidation proceedings according to section 123A.48, may propose a 
76.4 	temporary school board structure in the petition or resolution required under section 
76.5 	123A.48, subdivision 2. The districts may propose the number of existing school board 
76.6 	members of each district to become members of the board of the consolidated district 
76.7 	and a method to gradually reduce the membership to six or seven. The proposal must 
76.8 	be approved, disapproved, or modified by the state board of education commissioner. 
76.9 	The election requirements of section 123A.48, subdivision 20, do not apply to a 
76.10 	proposal approved by the state board. Elections conducted after the effective date of the 
76.11 	consolidation are subject to the Minnesota Election Law. 

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

76.13 	Sec. 5. Minnesota Statutes 2006, section 123B.53, subdivision 1, is amended to read:
76.14 		Subdivision 1.Definitions. (a) For purposes of this section, the eligible debt service 
76.15 	revenue of a district is defined as follows:
76.16 	(1) the amount needed to produce between five and six percent in excess of the 
76.17 	amount needed to meet when due the principal and interest payments on the obligations 
76.18 	of the district for eligible projects according to subdivision 2, including the amounts 
76.19 	necessary for repayment of energy loans according to section 216C.37 or sections 298.292
76.20 	to 298.298, debt service loans and capital loans, lease purchase payments under section 
76.21 	126C.40, subdivision 2, alternative facilities levies under section 123B.59, subdivision 
76.22 	5,  paragraph (a), minus
76.23 	(2) the amount of debt service excess levy reduction for that school year calculated 
76.24 	according to the procedure established by the commissioner.
76.25 	(b) The obligations in this paragraph are excluded from eligible debt service revenue:
76.26 	(1) obligations under section 123B.61;
76.27 	(2) the part of debt service principal and interest paid from the taconite environmental 
76.28 	protection fund or Douglas J. Johnson economic protection trust;
76.29 	(3) obligations issued under Laws 1991, chapter 265, article 5, section 18, as 
76.30 	amended by Laws 1992, chapter 499, article 5, section 24; and
76.31 	(4) obligations under section 123B.62.
76.32 	(c) For purposes of this section, if a preexisting school district reorganized under 
76.33 	sections 123A.35 to 123A.43, 123A.46, and 123A.48 is solely responsible for retirement 
76.34 	of the preexisting district's bonded indebtedness, capital loans or debt service loans, debt 
76.35 	service equalization aid must be computed separately for each of the preexisting districts.
77.1 	(d) For purposes of this section, the adjusted net tax capacity determined according 
77.2 	to section 127A.48 shall be adjusted to include a portion of the tax capacity of property 
77.3 	generally exempted from ad valorem taxes under section 272.02, subdivisions subdivision
77.4 	64 and 65, equal to the product of that tax capacity times the ratio of the eligible debt 
77.5 	service revenue attributed to general obligation bonds to the total eligible debt service 
77.6 	revenue of the district.

77.7 	Sec. 6. Minnesota Statutes 2006, section 123B.54, is amended to read:
77.8 	123B.54 DEBT SERVICE APPROPRIATION.
77.9 	(a) $21,624,000$8,866,000 in fiscal year 2008 2010 and $20,403,000 $6,631,000 in 
77.10 	fiscal year 20092011 and later are appropriated from the general fund to the commissioner 
77.11 	of education for payment of debt service equalization aid under section 123B.53.
77.12 	(b) The appropriations in paragraph (a) must be reduced by the amount of any 
77.13 	money specifically appropriated for the same purpose in any year from any state fund.

77.14 	Sec. 7. Minnesota Statutes 2006, section 123B.57, subdivision 3, is amended to read:
77.15 		Subd. 3.Health and safety revenue. A district's health and safety revenue 
77.16 	for a fiscal year equals the district's alternative facilities levy under section 123B.59, 
77.17 	subdivision 5, paragraph (b), plus the greater of zero or:
77.18 	(1) the sum of (a) the total approved cost of the district's hazardous substance 
77.19 	plan for fiscal years 1985 through 1989, plus (b) the total approved cost of the district's 
77.20 	health and safety program for fiscal year 1990 through the fiscal year to which the levy 
77.21 	is attributable, excluding expenditures funded with bonds issued under section 123B.59
77.22 	or 123B.62, or chapter 475; certificates of indebtedness or capital notes under section 
77.23 	123B.61; levies under section 123B.58, 123B.59, 123B.63, or 126C.40, subdivision 1 or 
77.24 	6; and other federal, state, or local revenues, minus 
77.25 	(2) the sum of (a) the district's total hazardous substance aid and levy for fiscal years 
77.26 	1985 through 1989 under sections 124.245 and 275.125, subdivision 11c, plus (b) the 
77.27 	district's health and safety revenue under this subdivision, for years before the fiscal year 
77.28 	to which the levy is attributable. 

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

77.30 	Sec. 8. Minnesota Statutes 2006, section 123B.63, subdivision 3, is amended to read:
77.31 		Subd. 3.Capital project levy referendum. A district may levy the local tax 
77.32 	rate approved by a majority of the electors voting on the question to provide funds for 
78.1 	an approved project. The election must take place no more than five years before the 
78.2 	estimated date of commencement of the project. The referendum must be held on a date 
78.3 	set by the board. A referendum for a project not receiving a positive review and comment 
78.4 	by the commissioner under section 123B.71 must be approved by at least 60 percent of the 
78.5 	voters at the election. The referendum may be called by the school board and may be held: 
78.6 	(1) separately, before an election for the issuance of obligations for the project 
78.7 	under chapter 475; or
78.8 	(2) in conjunction with an election for the issuance of obligations for the project 
78.9 	under chapter 475; or
78.10 	(3) notwithstanding section 475.59, as a conjunctive question authorizing both the 
78.11 	capital project levy and the issuance of obligations for the project under chapter 475. Any 
78.12 	obligations authorized for a project may be issued within five years of the date of the 
78.13 	election. 
78.14 	The ballot must provide a general description of the proposed project, state the 
78.15 	estimated total cost of the project, state whether the project has received a positive or 
78.16 	negative review and comment from the commissioner, state the maximum amount of the 
78.17 	capital project levy as a percentage of net tax capacity, state the amount that will be raised 
78.18 	by that local tax rate in the first year it is to be levied, and state the maximum number of 
78.19 	years that the levy authorization will apply.
78.20 	The ballot must contain a textual portion with the information required in this 
78.21 	section and a question stating substantially the following:
78.22 	"Shall the capital project levy proposed by the board of .......... School District 
78.23 	No. .......... be approved?"
78.24 	If approved, the amount provided by the approved local tax rate applied to the net 
78.25 	tax capacity for the year preceding the year the levy is certified may be certified for the 
78.26 	number of years, not to exceed ten, approved.
78.27 	In the event a conjunctive question proposes to authorize both the capital project 
78.28 	levy and the issuance of obligations for the project, appropriate language authorizing the 
78.29 	issuance of obligations must also be included in the question.
78.30 	The district must notify the commissioner of the results of the referendum.

78.31 	Sec. 9. Minnesota Statutes 2006, section 123B.71, subdivision 9, is amended to read:
78.32 		Subd. 9.Information required. A school board proposing to construct a facility 
78.33 	described in subdivision 8 shall submit to the commissioner a proposal containing 
78.34 	information including at least the following:
79.1 	(1) the geographic area and population to be served, preschool through grade 12 
79.2 	student enrollments for the past five years, and student enrollment projections for the 
79.3 	next five years;
79.4 	(2) a list of existing facilities by year constructed, their uses, and an assessment of 
79.5 	the extent to which alternate facilities are available within the school district boundaries 
79.6 	and in adjacent school districts;
79.7 	(3) a list of the specific deficiencies of the facility that demonstrate the need for a 
79.8 	new or renovated facility to be provided, and a list of the specific benefits that the new 
79.9 	or renovated facility will provide to the students, teachers, and community users served 
79.10 	by the facility;
79.11 	(4) the relationship of the project to any priorities established by the school district, 
79.12 	educational cooperatives that provide support services, or other public bodies in the 
79.13 	service area;
79.14 	(5) a specification of how the project will increase community use of the facility 
79.15 	and whether and how the project will increase collaboration with other governmental or 
79.16 	nonprofit entities;
79.17 	(6) a description of the project, including the specification of site and outdoor space 
79.18 	acreage and square footage allocations for classrooms, laboratories, and support spaces; 
79.19 	estimated expenditures for the major portions of the project; and the dates the project will 
79.20 	begin and be completed;
79.21 	(7) a specification of the source of financing the project; the scheduled date for 
79.22 	a bond issue or school board action; a schedule of payments, including debt service 
79.23 	equalization aid; and the effect of a bond issue on local property taxes by the property 
79.24 	class and valuation;
79.25 	(8) an analysis of how the proposed new or remodeled facility will affect school 
79.26 	district operational or administrative staffing costs, and how the district's operating budget 
79.27 	will cover any increased operational or administrative staffing costs;
79.28 	(9) a description of the consultation with local or state road and transportation 
79.29 	officials on school site access and safety issues, and the ways that the project will address 
79.30 	those issues;
79.31 	(10) a description of how indoor air quality issues have been considered and a 
79.32 	certification that the architects and engineers designing the facility will have professional 
79.33 	liability insurance;
79.34 	(11) as required under section 123B.72, for buildings coming into service after 
79.35 	July 1, 2002, a certification that the plans and designs for the extensively renovated or 
79.36 	new facility's heating, ventilation, and air conditioning systems will meet or exceed 
80.1 	code standards; will provide for the monitoring of outdoor airflow and total airflow of 
80.2 	ventilation systems; and will provide an indoor air quality filtration system that meets 
80.3 	ASHRAE standard 52.1;
80.4 	(12) a specification of any desegregation requirements that cannot be met by any 
80.5 	other reasonable means;
80.6 	(13) a specification, if applicable, of how the facility will utilize environmentally 
80.7 	sustainable school facility design concepts, and a description of how the facility will 
80.8 	incorporate energy conservation measures according to section 123B.65, subdivision 1, 
80.9 	paragraph (a); and
80.10 	(14) a description of how the architects and engineers have considered the American 
80.11 	National Standards Institute Acoustical Performance Criteria, Design Requirements and 
80.12 	Guidelines for Schools of the maximum background noise level and reverberation times.

80.13 	Sec. 10. Minnesota Statutes 2006, section 126C.45, is amended to read:
80.14 	126C.45 ICE ARENA LEVY.
80.15 	(a) Each year, an independent school district operating and maintaining an ice arena, 
80.16 	may levy for the net operational costs of the ice arena. The levy may not exceed 90 
80.17 	percent of the net actual costs of operation of the arena for the previous year. Net actual 
80.18 	costs are defined as operating costs less any operating revenues.
80.19 	(b) Any district operating and maintaining an ice arena must demonstrate to the 
80.20 	satisfaction of the Office of Monitoring in the department that the district will offer equal 
80.21 	sports opportunities for male and female students to use its ice arena, particularly in areas 
80.22 	of access to prime practice time, team support, and providing junior varsity and younger 
80.23 	level teams for girls' ice sports and ice sports offerings.

80.24 	Sec. 11. Minnesota Statutes 2006, section 128D.11, subdivision 3, is amended to read:
80.25 		Subd. 3.No election. Subject to the provisions of subdivisions 7 to 10, the school 
80.26 	district may also by a two-thirds majority vote of all the members of its board of education 
80.27 	and without any election by the voters of the district, issue and sell in each calendar year 
80.28 	general obligation bonds of the district in an amount not to exceed 5-1/10 per cent of the 
80.29 	net tax capacity of the taxable property in the district (plus, for calendar years 1990 to 
80.30 	2003, an amount not to exceed $7,500,000, and for calendar years 2004 to 20082013 an 
80.31 	amount not to exceed $15,000,000; with an additional provision that any amount of bonds 
80.32 	so authorized for sale in a specific year and not sold can be carried forward and sold in 
80.33 	the year immediately following).

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

81.2 	Sec. 12. Minnesota Statutes 2006, section 272.02, subdivision 64, is amended to read:
81.3 		Subd. 64.Job opportunity building zone property. (a) Improvements to real 
81.4 	property, and personal property, classified under section 273.13, subdivision 24, and 
81.5 	located within a job opportunity building zone, designated under section 469.314, are 
81.6 	exempt from ad valorem taxes levied under chapter 275.
81.7 	(b) Improvements to real property, and tangible personal property, of an agricultural 
81.8 	production facility located within an agricultural processing facility zone, designated 
81.9 	under section 469.314, is exempt from ad valorem taxes levied under chapter 275.
81.10 	(c) For property to qualify for exemption under paragraph (a), the occupant must be 
81.11 	a qualified business, as defined in section 469.310.
81.12 	(d) The exemption applies beginning for the first assessment year after designation 
81.13 	of the job opportunity building zone by the commissioner of employment and economic 
81.14 	development. The exemption applies to each assessment year that begins during the 
81.15 	duration of the job opportunity building zone. To be exempt, the property must be 
81.16 	occupied by July 1 of the assessment year by a qualified business that has signed the 
81.17 	business subsidy agreement and relocation agreement, if required, by July 1 of the 
81.18 	assessment year. This exemption does not apply to:
81.19 	(1) the levy under section 475.61 or similar levy provisions under any other law to 
81.20 	pay general obligation bonds; or
81.21 	(2) a levy under section 126C.17, if the levy was approved by the voters before the 
81.22 	designation of the job opportunity building zoneother school district levies included in 
81.23 	the debt service levy of the district under section 123B.55.

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

81.25 	Sec. 13. Minnesota Statutes 2006, section 275.065, subdivision 1, is amended to read:
81.26 		Subdivision 1.Proposed levy. (a) Notwithstanding any law or charter to the 
81.27 	contrary, on or before September 15, each taxing authority, other than a school district, 
81.28 	shall adopt a proposed budget and shall certify to the county auditor the proposed or, in 
81.29 	the case of a town, the final property tax levy for taxes payable in the following year.
81.30 	(b) On or before September 30, each school district shall certify to the county auditor 
81.31 	the proposed property tax levy for taxes payable in the following year. The school district 
81.32 	shall certify the proposed levy as:
82.1 	(1) a specific dollar amount by school district fund, broken down between 
82.2 	voter-approved and non-voter-approved levies and between referendum market value 
82.3 	and tax capacity levies; or
82.4 	(2) the maximum levy limitation certified by the commissioner of education 
82.5 	according to section   126C.48, subdivision 1. 
82.6 	(c) If the board of estimate and taxation or any similar board that establishes 
82.7 	maximum tax levies for taxing jurisdictions within a first class city certifies the maximum 
82.8 	property tax levies for funds under its jurisdiction by charter to the county auditor by 
82.9 	September 15, the city shall be deemed to have certified its levies for those taxing 
82.10 	jurisdictions.
82.11 	(d) For purposes of this section, "taxing authority" includes all home rule and 
82.12 	statutory cities, towns, counties, school districts, and special taxing districts as defined 
82.13 	in section   275.066. Intermediate school districts that levy a tax under chapter 124 or 
82.14 	136D, joint powers boards established under sections   123A.44 to   123A.446, and Common 
82.15 	School Districts No. 323, Franconia, and No. 815, Prinsburg, are also special taxing 
82.16 	districts for purposes of this section. 
82.17 	(e) Notwithstanding this section and section 126C.48, a school district, on or before 
82.18 	October 8 and with the agreement of the school district's home county auditor, shall 
82.19 	certify to the county auditor the district's proposed property tax levy for taxes payable in 
82.20 	the following year.

82.21 	Sec. 14. BONDING AUTHORIZATION.
 82.22 	To provide funds for the acquisition or betterment of school facilities, Independent 
82.23 	School District No. 625, St. Paul, may by two-thirds majority vote of all the members of 
82.24 	the board of directors issue general obligation bonds in one or more series for calendar 
82.25 	years 2008 through 2013, as provided in this section. The aggregate principal amount of 
82.26 	any bonds issued under this section for each calendar year must not exceed $15,000,000. 
82.27 	Issuance of the bonds is not subject to Minnesota Statutes, section 475.58 or 475.59. 
82.28 	The bonds must otherwise be issued as provided in Minnesota Statutes, chapter 475. 
82.29 	The authority to issue bonds under this section is in addition to any bonding authority 
82.30 	authorized by Minnesota Statutes, chapter 123B, or other law. The amount of bonding 
82.31 	authority authorized under this section must be disregarded in calculating the bonding 
82.32 	limit of Minnesota Statutes, chapter 123B, or any other law other than Minnesota Statutes, 
82.33 	section 475.53, subdivision 4.

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

83.1 	Sec. 15. TAX LEVY FOR DEBT SERVICE.
 83.2 	To pay the principal of and interest on bonds issued under section 2, Independent 
83.3 	School District No. 625, St. Paul, must levy a tax annually in an amount sufficient 
83.4 	under Minnesota Statutes, section 475.61, subdivisions 1 and 3, to pay the principal of 
83.5 	and interest on the bonds. The tax authorized under this section is in addition to the 
83.6 	taxes authorized to be levied under Minnesota Statutes, chapter 123B, 124D, or 126C, or 
83.7 	other law.

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

83.9 	Sec. 16. ADMINISTRATIVE LEASE LEVY; SPRING LAKE PARK.
 83.10 	Notwithstanding the instructional purposes limitation of Minnesota Statutes, section 
83.11 	126C.40, subdivision 1, Independent School District No. 16, Spring Lake Park, may 
83.12 	lease administrative space under Minnesota Statutes, section 126C.40, subdivision 1, if 
83.13 	the district can demonstrate to the satisfaction of the commissioner of education that 
83.14 	the administrative space is less expensive than instruction space that the district would 
83.15 	otherwise lease. A school district may not levy under this section for more than five years. 
83.16 	The commissioner must deny this levy authority unless the district passes a resolution 
83.17 	stating its intent to lease instructional space under Minnesota Statutes, section 126C.40, 
83.18 	subdivision 1, if the commissioner does not grant authority under this section. The 
83.19 	resolution must also certify that a lease of administrative space under this section is less 
83.20 	expensive than the district's proposed instructional lease. Levy authority under this section 
83.21 	shall not exceed the total levy authority under Minnesota Statutes, section 126C.40, 
83.22 	subdivision 1, paragraph (e). 

83.23 	EFFECTIVE DATE. This section is effective beginning with revenue for taxes 
83.24 	payable in 2008.

83.25 	Sec. 17. HEALTH AND SAFETY REVENUE; CLEARBROOK-GONVICK.
 83.26 	Notwithstanding Minnesota Statutes, section 123B.57, Independent School District 
83.27 	No. 2311, Clearbrook-Gonvick, may use health and safety revenue for the demolition of 
83.28 	the Gonvick school building. The district must recognize the revenue under this section 
83.29 	in fiscal year 2008.

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

83.31 	Sec. 18. ENVIRONMENTAL REMEDIATION LOAN; EDEN 
83.32 	VALLEY-WATKINS.
 84.1 		Subdivision 1.Environmental remediation loan revenue. In fiscal year 2008 only, 
84.2 	Independent School District No. 463, Eden Valley-Watkins, may receive environmental 
84.3 	remediation loan revenue equal to up to $126,000. The school district may recognize 
84.4 	this revenue in fiscal year 2007. The district must approve a board resolution to receive 
84.5 	revenue according to this section.
84.6 		Subd. 2.Levy. For taxes payable in 2008-2012, Independent School District No. 
84.7 	463, Eden Valley-Watkins, must levy an amount equal to its environmental remediation 
84.8 	loan revenue times .20.
84.9 		Subd. 3.General education revenue withholding. For fiscal years 2009-2012, 
84.10 	the Department of Education shall reduce the general education aid under Minnesota 
84.11 	Statutes, section 126C.13, subdivision 4, in an amount equal to the district's environmental 
84.12 	remediation loan revenue times .25.

84.13 	Sec. 19. APPROPRIATIONS.
 84.14 		Subdivision 1.Department of Education. The sums indicated in this section are 
84.15 	appropriated from the general fund to the Department of Education for the fiscal years 
84.16 	designated.
84.17 		Subd. 2.Health and safety revenue. For health and safety aid according to 
84.18 	Minnesota Statutes, section 123B.57, subdivision 5:

84.19		$
	190,000
	.....
	2008
	
84.20		$
	179,000
	.....
	2009
	
84.21 	The 2008 appropriation includes $20,000 for 2007 and $170,000 for 2008.
84.22 	The 2009 appropriation includes $18,000 for 2008 and $161,000 for 2009.
84.23 		Subd. 3.Debt service equalization. For debt service aid according to Minnesota 
84.24 	Statutes, section 123B.53, subdivision 6:

84.25		$
	14,813,000
	.....
	2008
	
84.26		$
	11,124,000
	.....
	2009
	
84.27 	The 2008 appropriation includes $1,765,000 for 2007 and $13,048,000 for 2008.
84.28 	The 2009 appropriation includes $1,449,000 for 2008 and $9,675,000 for 2009.
84.29 		Subd. 4.Alternative facilities bonding aid. For alternative facilities bonding aid, 
84.30 	according to Minnesota Statutes, section 123B.59, subdivision 1:

84.31		$
	19,287,000
	.....
	2008
	
84.32		$
	19,287,000
	.....
	2009
	
84.33 	The 2008 appropriation includes $1,928,000 for 2007 and $17,359,000 for 2008.
85.1 	The 2009 appropriation includes $1,928,000 for 2008 and $17,359,000 for 2009.
85.2 		Subd. 5.Deferred maintenance aid. For deferred maintenance aid, according to 
85.3 	Minnesota Statutes, section 123B.591, subdivision 4:

85.4		$
	3,290,000
	.....
	2008
	
85.5		$
	2,667,000
	.....
	2009
	
85.6 	The 2008 appropriation includes $0 for 2007 and $3,290,000 for 2008.
85.7 	The 2009 appropriation includes $365,000 for 2008 and $2,302,000 for 2009.
85.8 		Subd. 6.Equity in telecommunications access. For equity in telecommunications 
85.9 	access, according to Minnesota Statutes, section 125B.26:

85.10		$
	7,895,000
	.....
	2008
	
85.11		$
	7,895,000
	.....
	2009
	
85.12 	The base for this appropriation for fiscal year 2010 and later is $7,000,000.
85.13 		Subd. 7.Security reimbursement aid. For Independent School  District No. 38, 
85.14 	Red Lake, for onetime security reimbursement aid to improve infrastructure needs in the 
85.15 	Red Lake School District as a result of  the March 21, 2005, school shooting:

85.16		$
	132,000
	.....
	2008
	
85.17 	This is a onetime appropriation.
85.18 		Subd. 8.Eden Valley-Watkins loan. For Independent School District No. 463, 
85.19 	Eden Valley-Watkins, for an environmental remediation loan:

85.20		$
	126,000
	.....
	2008
	
85.21 	This is a onetime appropriation.
85.22 		Subd. 9.Rocori school district. For Rocori school district for Project Serv:

85.23		$
	53,000
	.....
	2008

85.24 	ARTICLE 5
85.25 	NUTRITION AND ACCOUNTING

85.26 	Section 1. Minnesota Statutes 2006, section 123B.79, is amended by adding a 
85.27 	subdivision to read:
85.28 		Subd. 9.Elimination of reserve accounts. A school board shall eliminate all 
85.29 	reserve accounts established in the school district's general fund under Minnesota Statutes 
85.30 	before July 1, 2006, for which no specific authority remains in statute as of June 30, 
85.31 	2007. Any balance in the district's reserved for bus purchases account as of June 30, 
86.1 	2007, shall be transferred to the reserved account for operating capital in the school 
86.2 	district's general fund. Any balance in other reserved accounts established in the school 
86.3 	district's general fund under Minnesota Statutes before July 1, 2006, for which no specific 
86.4 	authority remains in statute as of June 30, 2007, shall be transferred to the school district's 
86.5 	unreserved general fund balance. A school board may, upon adoption of a resolution by 
86.6 	the school board, establish a designated account for any program for which a reserved 
86.7 	account has been eliminated.

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

86.9 	Sec. 2. Minnesota Statutes 2006, section 124D.111, subdivision 1, is amended to read:
86.10 		Subdivision 1.School lunch aid computation. Each school year, the state must pay 
86.11 	participants in the national school lunch program the amount of 10.5 12 cents for each full 
86.12 	paid, reduced, and free student lunch served to students.

86.13 	Sec. 3. OPERATING COST DIFFERENTIAL STUDY.
 86.14 	(a) The commissioner of education shall work, in cooperation with the Regional 
86.15 	Educational Laboratory (REL) Midwest, to determine the differential cost of operating a 
86.16 	school district in Minnesota using sound economic and statistical reasoning.
86.17 	(b) The study shall identify the true cost of operating a school district in different 
86.18 	regions across the state. As part of the study, the commissioner shall:
86.19 	(1) consider all districts in the state individually and regionally based on 
86.20 	demography, economic region, geography, and any other region as determined by REL 
86.21 	Midwest to better illustrate the cost differential observed;
86.22 	(2) examine the economic factors that contribute to the costs underlying the basic 
86.23 	operation of a school district including land costs, salaries, hourly wages, health care 
86.24 	costs, transportation costs, energy costs, telecommunication costs, sparsity, housing prices, 
86.25 	administrative costs, and any other factor that REL Midwest believes, through sound 
86.26 	economic reasoning, contributes to the underlying cost of operating a school district; and
86.27 	(3) construct a study that controls for factors that vary across school districts 
86.28 	in the state including class size, teacher credentials and education, limited English 
86.29 	proficiency, poverty, mobility, athletics opportunities available to each student, advanced 
86.30 	placement course offerings, postsecondary education options, international baccalaureate 
86.31 	opportunities, college in the schools offerings, foreign language options, academic clubs, 
86.32 	extracurricular opportunities, career and technical programs, and any other criteria for 
86.33 	which REL Midwest believes, through sound economic reasoning, differentially alters the 
86.34 	quality or the operating cost of a school district.
87.1 	(c) The commissioner must report on the findings and make recommendations on 
87.2 	statewide policies to the legislative committees having jurisdiction over kindergarten 
87.3 	through grade 12 education before December 15, 2008.

87.4 	Sec. 4. SCHOOL DISTRICT FORMULA ADJUSTMENTS.
 87.5 		Subdivision 1.Tax rate adjustment; adjusted net tax capacity (ANTC).
 87.6 	The commissioner of education must adjust each tax rate established under Minnesota 
87.7 	Statutes, chapters 120A to 127A, by multiplying the rate by the ratio of the statewide net 
87.8 	tax capacity as calculated using the class rates in effect for assessment year 2006 to the 
87.9 	statewide total net tax capacity as calculated using the class rates in effect for assessment 
87.10 	year 2007, in both cases using taxable market values for assessment year 2006.
87.11 		Subd. 2.Equalizing factors; ANTC. The commissioner of education must 
87.12 	adjust each equalizing factor based upon adjusted net tax capacity per actual pupil 
87.13 	unit established under Minnesota Statutes, chapters 120A to 127A, by multiplying the 
87.14 	equalizing factor by the ratio of the statewide net tax capacity as calculated using the class 
87.15 	rates in effect for assessment year 2007 to the statewide total net tax capacity as calculated 
87.16 	using the class rates in effect for assessment year 2006, in both cases using taxable market 
87.17 	values for assessment year 2006.
87.18 		Subd. 3.Equalizing factors. The commissioner of education must adjust each 
87.19 	equalizing factor based upon the referendum market value per actual pupil unit established 
87.20 	under Minnesota Statutes, chapters 120A to 127A, by multiplying the equalizing factor 
87.21 	by the ratio of the statewide total referendum market value as calculated using the class 
87.22 	rates in effect for assessment year 2007 to the statewide total referendum market value 
87.23 	as calculated using the class rates in effect for assessment year 2006, in both cases using 
87.24 	referendum market values for assessment year 2006.
87.25 		Subd. 4.Maximum effort exception. Notwithstanding the calculations under 
87.26 	subdivision 1, the commissioner of education must make the tax rate calculation changes 
87.27 	for the maximum effort capital loan program, defined under Minnesota Statutes, section 
87.28 	126C.63, by multiplying the rate by the ratio of the total net tax capacity for maximum 
87.29 	effort school districts as calculated using the class rates in effect for assessment year 2006 
87.30 	to the total net tax capacity for maximum effort school districts using the class rates in 
87.31 	effect for assessment year 2007, in both cases using taxable market values for assessment 
87.32 	year 2006.

87.33 	Sec. 5. FUND TRANSFER.
 88.1 		Subdivision 1.Brainerd. Notwithstanding Minnesota Statutes, section 123B.79 
88.2 	or 123B.80, on June 30, 2007, Independent School District No. 181, Brainerd, may 
88.3 	permanently transfer up to $750,000 from its reserved for operating capital account to its 
88.4 	undesignated general fund balance without making a levy reduction.
88.5 		Subd. 2.Campbell-Tintah. Notwithstanding Minnesota Statutes, section 123B.79 
88.6 	or 123B.80, on June 30, 2007, Independent School District No. 852, Campbell-Tintah, 
88.7 	may permanently transfer up to $100,000 from its reserved for operating capital account 
88.8 	to its undesignated general fund without making a levy reduction.
88.9 		Subd. 3.Comfrey. Notwithstanding Minnesota Statutes, section 123B.79 
88.10 	or 123B.80, on June 30, 2007, Independent School District No. 81, Comfrey, may 
88.11 	permanently transfer up to $250,000 from its reserved for operating capital account to its 
88.12 	undesignated general fund balance without making a levy reduction.
88.13 		Subd. 4.Floodwood. Notwithstanding Minnesota Statutes, section 123B.79 
88.14 	or 123B.80, on June 30, 2007, Independent School District No. 698, Floodwood, 
88.15 	may transfer up to $227,000 from its reserved for disabled accessibility account to its 
88.16 	undesignated general fund balance without making a levy reduction.
88.17 		Subd. 5.International Falls. Notwithstanding Minnesota Statutes, section 123B.79 
88.18 	or 123B.80, on June 30, 2007, Independent School District No. 361, International Falls, 
88.19 	may permanently transfer up to $100,000 from its reserved for operating capital account 
88.20 	to its undesignated general fund balance without making a levy reduction.
88.21 		Subd. 6.Jackson County Central. Notwithstanding Minnesota Statutes, section 
88.22 	123B.79 or 123B.80, on June 30, 2007, Independent School District No. 2895, Jackson 
88.23 	County Central, may permanently transfer up to $300,000 from its reserved for operating 
88.24 	capital account to its undesignated general fund balance without making a levy reduction.
88.25 		Subd. 7.Red Rock Central. Notwithstanding Minnesota Statutes, section 123B.79 
88.26 	or 123B.80, on June 30, 2007, Independent School District No. 2884, Red Rock Central, 
88.27 	may permanently transfer up to $81,000 from its reserved for disabled accessibility 
88.28 	account to its undesignated general fund balance without making a levy reduction. 
88.29 		Subd. 8.Windom. Notwithstanding Minnesota Statutes, section 123B.79 or 
88.30 	123B.80, on June 30, 2007, Independent School District No. 177, Windom, may transfer 
88.31 	up to $50,000 from its reserved for operating capital account to its undesignated general 
88.32 	fund balance without making a levy reduction.

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

88.34 	Sec. 6. APPROPRIATIONS.
 89.1 		Subdivision 1.Department of Education. The sums indicated in this section are 
89.2 	appropriated from the general fund to the Department of Education for the fiscal years 
89.3 	designated.
89.4 		Subd. 2.School lunch aid. For school lunch aid according to Minnesota Statutes, 
89.5 	section 124D.111, and Code of Federal Regulations, title 7, section 210.17:

89.6		$
	12,021,000
	.....
	2008
	
89.7		$
	12,165,000
	.....
	2009
	
89.8 		Subd. 3.Traditional school breakfast and kindergarten milk. For traditional 
89.9 	school breakfast aid and kindergarten milk under Minnesota Statutes, sections 124D.1158 
89.10 	and 124D.118:

89.11		$
	5,460,000
	.....
	2008
	
89.12		$
	5,695,000
	.....
	2009
	
89.13 		Subd. 4.Summer school food service replacement aid. For summer school food 
89.14 	service replacement aid under Minnesota Statutes, section 124D.119:

89.15		$
	150,000
	.....
	2008
	
89.16		$
	150,000
	.....
	2009

89.17 	Sec. 7.  REPEALER.
 89.18 	Minnesota Statutes 2006, section 123B.749, is repealed.

89.19 	ARTICLE 6
89.20 	LIBRARIES

89.21 	Section 1. Minnesota Statutes 2006, section 134.31, is amended by adding a 
89.22 	subdivision to read:
89.23 		Subd. 4a.Services to the blind and physically handicapped. The Minnesota 
89.24 	Department of Education shall provide specialized services to the blind and physically 
89.25 	handicapped through the Minnesota Library for the Blind and Physically Handicapped 
89.26 	under a cooperative plan with the National Library Services for the Blind and Physically 
89.27 	Handicapped of the Library of Congress.

89.28 	Sec. 2. APPROPRIATIONS.
 89.29 		Subdivision 1.Department of Education. The sums indicated in this section are 
89.30 	appropriated from the general fund to the Department of Education for the fiscal years 
89.31 	designated.
90.1 		Subd. 2.Basic system support. For basic system support grants under Minnesota 
90.2 	Statutes, section 134.355:

90.3		$
	8,863,000
	.....
	2008
	
90.4		$
	9,030,000
	.....
	2009
	
90.5 	The 2008 appropriation includes $857,000 for 2007 and $8,006,000 for 2008.
90.6 	The 2009 appropriation includes $889,000 for 2008 and $8,141,000 for 2009.
90.7 		Subd. 3.Multicounty, multitype library systems. For grants under Minnesota 
90.8 	Statutes, sections 134.353 and 134.354, to multicounty, multitype library systems:

90.9		$
	993,000
	.....
	2008
	
90.10		$
	1,093,000
	.....
	2009
	
90.11 	The 2008 appropriation includes $90,000 for 2007 and $903,000 for 2008.
90.12 	The 2009 appropriation includes $100,000 for 2008 and $993,000 for 2009.
90.13 		Subd. 4.Electronic library for Minnesota. For statewide licenses to online 
90.14 	databases selected in cooperation with the Minnesota Office of Higher Education for 
90.15 	school media centers, public libraries, state government agency libraries, and public 
90.16 	or private college or university libraries:

90.17		$
	900,000
	.....
	2008
	
90.18		$
	900,000
	.....
	2009
	
90.19 	Any balance in the first year does not cancel but is available in the second year.
90.20 		Subd. 5.Regional library telecommunications aid. For regional library 
90.21 	telecommunications aid under Minnesota Statutes, section 134.355:

90.22		$
	1,920,000
	.....
	2008
	
90.23		$
	2,000,000
	.....
	2009
	
90.24 	The 2008 appropriation includes $120,000 for 2007 and $1,800,000 for 2008.
90.25 	The 2009 appropriation includes $200,000 for 2008 and $1,800,000 for 2009.

90.26 	ARTICLE 7
90.27 	EARLY CHILDHOOD EDUCATION

90.28 	Section 1. Minnesota Statutes 2006, section 119A.52, is amended to read:
90.29 	119A.52 DISTRIBUTION OF APPROPRIATION.
90.30 	(a) The commissioner of education must distribute money appropriated for that 
90.31 	purpose to federally designated Head Start programs to expand services and to serve 
90.32 	additional low-income children. Migrant and Indian reservation programs must be initially 
90.33 	allocated money based on the programs' share of federal funds. The remaining money 
91.1 	must be initially allocated to the remaining local agencies based equally on the agencies' 
91.2 	share of federal funds and on the proportion of eligible children in the agencies' service 
91.3 	area who are not currently being served. A Head Start grantee program must be funded 
91.4 	at a per child rate equal to its contracted, federally funded base level at the start of the 
91.5 	fiscal year. In allocating funds under this paragraph, the commissioner of education 
91.6 	must assure that each Head Start program in existence in 1993 is allocated no less 
91.7 	funding in any fiscal year than was allocated to that program in fiscal year 1993. Before 
91.8 	paying money to the programs, the commissioner must notify each program of its initial 
91.9 	allocation, how the money must be used, and the number of low-income children to be 
91.10 	served with the allocation based upon the federally funded per child rate. Each program 
91.11 	must present a plan under section 119A.535. For any grantee program that cannot utilize 
91.12 	its full allocation at the beginning of the fiscal year, the commissioner must reduce the 
91.13 	allocation proportionately. Money available after the initial allocations are reduced must 
91.14 	be redistributed to eligible grantees programs.
91.15 	(b) The commissioner must develop procedures to make payments to programs 
91.16 	based upon the number of children reported to be enrolled during the required time 
91.17 	period of program operations. Enrollment is defined by federal Head Start regulations. 
91.18 	The procedures must include a reporting schedule, corrective action plan requirements, 
91.19 	and financial consequences to be imposed on programs that do not meet full enrollment 
91.20 	after the period of corrective action. Programs reporting chronic underenrollment, as 
91.21 	defined by the commissioner, will have their subsequent program year allocation reduced 
91.22 	proportionately. Funds made available by prorating payments and allocations to programs 
91.23 	with reported underenrollment will be made available to the extent funds exist to fully 
91.24 	enrolled Head Start programs through a form and manner prescribed by the department.

91.25 	Sec. 2. Minnesota Statutes 2006, section 121A.17, subdivision 5, is amended to read:
91.26 		Subd. 5.Developmental screening program information. The board must inform 
91.27 	each resident family with a child eligible to participate in the developmental screening 
91.28 	program about the availability of the program and the state's requirement that a child 
91.29 	receive a developmental screening or provide health records indicating that the child 
91.30 	received a comparable developmental screening from a public or private health care 
91.31 	organization or individual health care provider not later than 30 days after the first 
91.32 	day of attending kindergarten in a public school. A school district must inform all 
91.33 	resident families with eligible children under age seven that their children may receive 
91.34 	a developmental screening conducted either by the school district or by a public or 
91.35 	private health care organization or individual health care provider and that the screening 
92.1 	is not required if a statement signed by the child's parent or guardian is submitted to the 
92.2 	administrator or other person having general control and supervision of the school that 
92.3 	the child has not been screened.

92.4 	Sec. 3. Minnesota Statutes 2006, section 121A.19, is amended to read:
92.5 	121A.19 DEVELOPMENTAL SCREENING AID.
92.6 	Each school year, the state must pay a district  for each  child or student screened by 
92.7 	the district  according to the requirements of section 121A.17. The amount of state aid for 
92.8 	each child or student screened shall be: (1) $50$60 for a child screened at age three; (2) 
92.9 	$40$50 for a child screened at age four; (3) $30$40 for a child screened at age five or 
92.10 	six prior to kindergarten; and (4) $30$40 for a student screened within 30 days after first 
92.11 	enrolling in a public school kindergarten if the student has not previously been screened 
92.12 	according to the requirements of section 121A.17. If this amount of aid is insufficient, 
92.13 	the district may permanently transfer from the general fund an amount that, when added 
92.14 	to the aid, is sufficient. Developmental screening aid shall not be paid for any student 
92.15 	who is screened more than 30 days after the first day of attendance at a public school 
92.16 	kindergarten, except if a student transfers to another public school kindergarten within 
92.17 	30 days after first enrolling in a Minnesota public school kindergarten program. In this 
92.18 	case, if the student has not been screened, the district to which the student transfers may 
92.19 	receive developmental screening aid for screening that student when the screening is 
92.20 	performed within 30 days of the transfer date.

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

92.22 	Sec. 4. Minnesota Statutes 2006, section 124D.13, subdivision 2, is amended to read:
92.23 		Subd. 2.Program characteristics requirements. (a) Early childhood family 
92.24 	education programs are programs for children in the period of life from birth to 
92.25 	kindergarten, for the parents and other relatives of these children, and for expectant 
92.26 	parents. To the extent that funds are insufficient to provide programs for all children, 
92.27 	early childhood family education programs should emphasize programming for a child 
92.28 	from birth to age three and encourage parents and other relatives to involve four- and 
92.29 	five-year-old children in school readiness programs, and other public and nonpublic early 
92.30 	learning programs. A district may not limit participation to school district residents. Early 
92.31 	childhood family education programs may include the following must provide:
93.1 	(1) programs to educate parents and other relatives about the physical, mental, and 
93.2 	emotional development of children and to enhance the skills of parents and other relatives 
93.3 	in providing for their children's learning and development;
93.4 	(2) programs to enhance the skills of parents and other relatives in providing for their 
93.5 	children's learning and development structured learning activities requiring interaction 
93.6 	between children and their parents or relatives;
93.7 	(3) structured learning experiences activities for children and parents and other 
93.8 	relatives that promote children's development and positive interaction with peers, which 
93.9 	are held while parents or relatives attend parent education classes;
93.10 	(4) activities designed to detect children's physical, mental, emotional, or behavioral 
93.11 	problems that may cause learning problems;
93.12 	(5) activities and materials designed to encourage self-esteem, skills, and behavior 
93.13 	that prevent sexual and other interpersonal violence;
93.14 	(6) educational materials which may be borrowed for home use;
93.15 	(7) (4) information on related community resources;
93.16 	(8) programs to prevent (5) information, materials, and activities that support the 
93.17 	safety of children, including prevention of child abuse and neglect; and
93.18 	(9) other programs or activities to improve the health, development, and school 
93.19 	readiness of children; or
93.20 	(10) activities designed to maximize development during infancy.
93.21 	(6) a community outreach plan to ensure participation by families who reflect the 
93.22 	racial, cultural, and economic diversity of the school district.
93.23 	The programs must include learning experiences for children, parents, and other 
93.24 	relatives that promote children's early literacy skills. The programsprogram must not 
93.25 	include activities for children that do not require substantial involvement of the children's 
93.26 	parents or other relatives. The programs program must be reviewed periodically to assure 
93.27 	the instruction and materials are not racially, culturally, or sexually biased. The programs 
93.28 	must encourage parents to be aware of practices that may affect equitable development of 
93.29 	children.
93.30 	(b) For the purposes of this section, "relative" or "relatives" means noncustodial 
93.31 	grandparents or other persons related to a child by blood, marriage, adoption, or foster 
93.32 	placement, excluding parents.

93.33 	Sec. 5. Minnesota Statutes 2006, section 124D.13, is amended by adding a subdivision 
93.34 	to read:
94.1 		Subd. 13.Plan and program data submission requirements. (a) An early 
94.2 	childhood family education program must submit a biennial plan addressing the 
94.3 	requirements of subdivision 2 for approval by the commissioner. The plan must also 
94.4 	describe how the program provides parenting education and ensures participation of 
94.5 	families representative of the school district. A school district must submit the plan for 
94.6 	approval by the commissioner in the form and manner prescribed by the commissioner. 
94.7 	One-half of districts, as determined by the commissioner, must first submit a biennial plan 
94.8 	by April 1, 2009, and the remaining districts must first submit a plan by April 1, 2010.
94.9 	(b) Districts receiving early childhood family education revenue under section 
94.10 	124D.135 must submit annual program data to the department by July 15 in the form and 
94.11 	manner prescribed by the commissioner.
94.12 	(c) Beginning with levies for fiscal year 2011, a school district must submit its annual 
94.13 	program data to the department before it may certify a levy under section 124D.135. 
94.14 	Districts selected by the commissioner to submit a biennial plan by April 1, 2010, must 
94.15 	also have an approved plan on file with the commissioner before certifying a levy under 
94.16 	section 124D.135 for fiscal year 2011. Beginning with levies for fiscal year 2012, all 
94.17 	districts must submit annual program data and have an approved biennial plan on file with 
94.18 	the commissioner before certifying a levy under section 124D.135.

94.19 	Sec. 6. Minnesota Statutes 2006, section 124D.135, subdivision 1, is amended to read:
94.20 		Subdivision 1.Revenue. The revenue for early childhood family education 
94.21 	programs for a school district equals  $112 for fiscal year 2007 and $120 for fiscal year 
94.22 	2008 and later, times the greater of:
94.23 	(1) 150; or
94.24 	(2) the number of people under five years of age residing in the district on October 1 
94.25 	of the previous school year.

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

94.27 	Sec. 7. Minnesota Statutes 2006, section 124D.135, subdivision 3, is amended to read:
94.28 		Subd. 3.Early childhood family education levy. For fiscal year 2001 to obtain 
94.29 	early childhood family education revenue, a district may levy an amount equal to the tax 
94.30 	rate of .5282 percent times the adjusted tax capacity of the district for the year preceding 
94.31 	the year the levy is certified. Beginning with levies for fiscal year 2002, By September 
94.32 	30 of each year, the commissioner shall establish a tax rate for early childhood family
94.33 	education revenue that raises $21,027,000 for fiscal year 2002 and $22,135,000 in each
94.34 	fiscal year 2003 and each subsequent year. If the amount of the early childhood family 
95.1 	education levy would exceed the early childhood family education revenue, the early 
95.2 	childhood family education levy must equal the early childhood family education revenue.
95.3 	Beginning with levies for fiscal year 2011, a district may not certify an early childhood 
95.4 	family education levy unless it has met the annual program data reporting and biennial 
95.5 	plan requirements under section 124D.13, subdivision 13.

95.6 	Sec. 8. Minnesota Statutes 2006, section 124D.135, subdivision 5, is amended to read:
95.7 		Subd. 5.Use of revenue restricted. Early childhood family education revenue may 
95.8 	be used only for early childhood family education programs.
95.9 	(a) Not more than five percent of early childhood family education revenue, as 
95.10 	defined in subdivision 7, may be used to administer early childhood family education 
95.11 	programs.
95.12 	(b) An early childhood family education program may use up to ten percent of its 
95.13 	early childhood family education revenue as defined in subdivision 1, including revenue 
95.14 	from participant fees, for equipment that is used in the early childhood family education 
95.15 	program. This revenue may only be used for the following purposes:
95.16 	(1) to purchase or lease computers and related materials; and
95.17 	(2) to purchase or lease equipment for instruction for participating children and 
95.18 	their families.
95.19 	If a district anticipates an unusual circumstance requiring its early childhood family 
95.20 	education program capital expenditures to exceed the ten percent limitation, prior approval 
95.21 	to exceed the limit must be obtained in writing from the commissioner.

95.22 	Sec. 9. Minnesota Statutes 2006, section 124D.135, subdivision 6, is amended to read:
95.23 		Subd. 6.Home visiting levy. A district that is eligible to levy for early childhood 
95.24 	family education under subdivision 3 and that enters into a collaborative agreement to 
95.25 	provide education services and social services to families with young children may levy 
95.26 	an amount equal to $1.60 times the number of people under five years of age residing in 
95.27 	the district on September 1 of the last school year. Levy revenue under this subdivision 
95.28 	must not be included as revenue under subdivision 1. The revenue must be used for home 
95.29 	visiting programs under section 124D.13, subdivision 4. 

95.30 	Sec. 10. Minnesota Statutes 2006, section 124D.15, subdivision 3, is amended to read:
95.31 		Subd. 3.Program requirements. A school readiness program provider must:
95.32 	(1) assess each child's cognitive skills when the child enters and again before the 
95.33 	child leaves the program to inform program planning and promote kindergarten readiness;
96.1 	(2) provide comprehensive program content based on early childhood research and 
96.2 	professional practice that is focused on children's cognitive skills and development and 
96.3 	prepares children for the transition to kindergarten, including early literacy skills;
96.4 	(3) arrange for early childhood screening and appropriate referral;
96.5 	(4) involve parents in program planning and decision making;
96.6 	(5) coordinate with relevant community-based services; and
96.7 	(6) cooperate with adult basic education programs and other adult literacy programs.

96.8 	Sec. 11. APPROPRIATIONS.
 96.9 		Subdivision 1.Department of Education. The sums indicated in this section are 
96.10 	appropriated from the general fund to the Department of Education for the fiscal years 
96.11 	designated.
96.12 		Subd. 2.School readiness. For revenue for school readiness programs under 
96.13 	Minnesota Statutes, sections 124D.15 and 124D.16:

96.14		$
	9,095,000
	.....
	2008
	
96.15		$
	9,095,000
	.....
	2009
	
96.16 	The 2008 appropriation includes $909,000 for 2007 and $8,186,000 for 2008.
96.17 	The 2009 appropriation includes $909,000 for 2008 and $8,186,000 for 2009.
96.18 		Subd. 3.Early childhood family education aid. For early childhood family 
96.19 	education aid under Minnesota Statutes, section 124D.135:

96.20		$
	21,106,000
	.....
	2008
	
96.21		$
	21,888,000
	.....
	2009
	
96.22 	The 2008 appropriation includes $1,796,000 for 2007 and $19,310,000 for 2008.
96.23 	The 2009 appropriation includes $2,145,000 for 2008 and $19,743,000 for 2009.
96.24 		Subd. 4.Health and developmental screening aid. For health and developmental 
96.25 	screening aid under Minnesota Statutes, sections 121A.17 and 121A.19:

96.26		$
	3,815,000
	.....
	2008
	
96.27		$
	4,061,000
	.....
	2009
	
96.28 	The 2008 appropriation includes $288,000 for 2007 and $3,527,000 for 2008.
96.29 	The 2009 appropriation includes $391,000 for 2008 and $3,670,000 for 2009.
96.30 		Subd. 5.Head Start program. For Head Start programs under Minnesota Statutes, 
96.31 	section 119A.52:

97.1		$
	19,100,000
	.....
	2008
	
97.2		$
	19,100,000
	.....
	2009
	
97.3 	Any balance in the first year does not cancel but is available in the second year.
97.4 		Subd. 6.Educate parents partnership. For the educate parents partnership under 
97.5 	Minnesota Statutes, section 124D.129:

97.6		$
	50,000
	.....
	2008
	
97.7		$
	50,000
	.....
	2009
	
97.8 		Subd. 7.Kindergarten readiness assessment initiative and intervention 
97.9 	program. For the kindergarten readiness assessment initiative and intervention program 
97.10 	under Minnesota Statutes, section 124D.162:

97.11		$
	287,000
	.....
	2008
	
97.12		$
	287,000
	.....
	2009

97.13 	ARTICLE 8
97.14 	PREVENTION

97.15 	Section 1. APPROPRIATION.
 97.16 		Subdivision 1.Department of Education. The sums indicated in this section are 
97.17 	appropriated from the general fund to the Department of Education for the fiscal years 
97.18 	designated.
97.19 		Subd. 2.Community education aid. For community education aid under 
97.20 	Minnesota Statutes, section 124D.20:

97.21		$
	1,307,000
	.....
	2008
	
97.22		$
	816,000
	.....
	2009
	
97.23 	The 2008 appropriation includes $195,000 for 2007 and $1,112,000 for 2008.
97.24 	The 2009 appropriation includes $123,000 for 2008 and $693,000 for 2009.
97.25 		Subd. 3.Adults with disabilities program aid. For adults with disabilities 
97.26 	programs under Minnesota Statutes, section 124D.56:

97.27		$
	710,000
	.....
	2008
	
97.28		$
	710,000
	.....
	2009
	
97.29 	The 2008 appropriation includes $71,000 for 2007 and $639,000 for 2008.
97.30 	The 2009 appropriation includes $71,000 for 2008 and $639,000 for 2009.
98.1 		Subd. 4.Hearing-impaired adults. For programs for hearing-impaired adults 
98.2 	under Minnesota Statutes, section 124D.57:

98.3		$
	70,000
	.....
	2008
	
98.4		$
	70,000
	.....
	2009
	
98.5 		Subd. 5.School-age care aid. For extended day aid under Minnesota Statutes, 
98.6 	section 124D.22:

98.7		$
	1,000
	.....
	2008
	
98.8		$
	1,000
	.....
	2009
	
98.9 	The 2008 appropriation includes $0 for 2007 and $1,000 for 2008.
98.10 	The 2009 appropriation includes $0 for 2008 and $1,000 for 2009.

98.11 	ARTICLE 9
98.12 	SELF-SUFFICIENCY AND LIFELONG LEARNING

98.13 	Section 1. Minnesota Statutes 2006, section 124D.531, subdivision 4, is amended to 
98.14 	read:
98.15 		Subd. 4.Adult basic education program aid limit. (a) Notwithstanding 
98.16 	subdivisions 2 and 3, the total adult basic education aid for a program per prior year 
98.17 	contact hour must not exceed $21 per prior year contact hour computed under subdivision 
98.18 	3, clause (2).
98.19 	(b) For fiscal year 2004, the aid for a program under subdivision 3, clause (2), 
98.20 	adjusted for changes in program membership, must not exceed the aid for that program 
98.21 	under subdivision 3, clause (2), for fiscal year 2003 by more than the greater of eight 
98.22 	percent or $10,000.
98.23 	(c) For fiscal year 2005, the aid for a program under subdivision 3, clause (2), 
98.24 	adjusted for changes in program membership, must not exceed the sum of the aid for that 
98.25 	program under subdivision 3, clause (2), and Laws 2003, First Special Session chapter 9, 
98.26 	article 9, section 8, paragraph (a), for the preceding fiscal year by more than the greater of 
98.27 	eight percent or $10,000.
98.28 	(d) (b) For fiscal year 2006 and later fiscal year 2007, the aid for a program under 
98.29 	subdivision 3, clause (2), adjusted for changes in program membership, must not exceed 
98.30 	the aid for that program under subdivision 3, clause (2), for the first preceding fiscal year 
98.31 	by more than the greater of eight percent or $10,000.
98.32 	(c) For fiscal year 2008 and later, the aid for a program under subdivision 3, 
98.33 	clause (2), adjusted for changes in program membership, must not exceed the aid for 
99.1 	that program under subdivision 3, clause (2), for the first preceding fiscal year by more 
99.2 	than the greater of 11 percent or $14,000.
99.3 	(e) (d) Adult basic education aid is payable to a program for unreimbursed costs 
99.4 	occurring in the program year as defined in section 124D.52, subdivision 3.
99.5 	(f) (e) Any adult basic education aid that is not paid to a program because of the 
99.6 	program aid limitation under paragraph (a) must be added to the state total adult basic 
99.7 	education aid for the next fiscal year under subdivision 1. Any adult basic education aid 
99.8 	that is not paid to a program because of the program aid limitations under paragraph (b),
99.9 	or (c), or (d), must be reallocated among programs by adjusting the rate per contact hour 
99.10 	under subdivision 3, clause (2).

99.11 	Sec. 2. Minnesota Statutes 2006, section 124D.55, is amended to read:
99.12 	124D.55 GENERAL EDUCATION DEVELOPMENT (GED) TEST FEES.
99.13 	The commissioner shall pay 60 percent of the fee that is charged to an eligible 
99.14 	individual for the full battery of a general education development (GED) test, but not 
99.15 	more than $20$40 for an eligible individual.

99.16 	Sec. 3. APPROPRIATIONS; DEPARTMENT OF EDUCATION.
 99.17 		Subdivision 1.Department of Education. The sums indicated in this section are 
99.18 	appropriated from the general fund to the Department of Education for the fiscal years 
99.19 	designated.
99.20 		Subd. 2.Adult basic education aid. For adult basic education aid under Minnesota 
99.21 	Statutes, section 124D.531:

99.22		$
	38,646,000
	.....
	2008
	
99.23		$
	39,807,000
	.....
	2009
	
99.24 	The 2008 appropriation includes $3,759,000 for 2007 and $34,887,000 for 2008.
99.25 	The 2009 appropriation includes $3,876,000 for 2008 and $35,931,000 for 2009.
99.26 		Subd. 3.GED tests. For payment of 60 percent of the costs of GED tests under 
99.27 	Laws 1993, chapter 224, article 4, section 44, subdivision 10:

99.28		$
	125,000
	.....
	2008
	
99.29		$
	125,000
	.....
	2009
	
99.30 		Subd. 4.Adult literacy grants for recent immigrants. For adult literacy grants for 
99.31 	recent immigrants to Minnesota under Laws 2006, chapter 282, article 2, section 26:

100.1		$
	1,250,000
	.....
	2008
	
100.2 	This is a onetime appropriation.

100.3 	Sec. 4. APPROPRIATIONS; DEPARTMENT OF HEALTH.
 100.4 		Subdivision 1.Department of Health. The sums indicated in this section are 
100.5 	appropriated from the general fund to the Department of Health for the fiscal years 
100.6 	designated.
100.7 		Subd. 2.Lead hazard reduction. For lead hazard reduction under Minnesota 
100.8 	Statutes, section 144.9512:

100.9		$
	100,000
	.....
	2008
	
100.10		$
	100,000
	.....
	2009

100.11 	Sec. 5.  REPEALER.
 100.12 	Minnesota Statutes 2006, section 124D.531, subdivision 5, is repealed.

100.13 	ARTICLE 10
100.14 	STATE AGENCIES

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

100.20 	Sec. 2. Minnesota Statutes 2006, section 517.08, subdivision 1c, is amended to read:
100.21 		Subd. 1c.Disposition of license fee. (a) Of the marriage license fee collected 
100.22 	pursuant to subdivision 1b, paragraph (a), $15 must be retained by the county. The local 
100.23 	registrar must pay $85 to the commissioner of finance to be deposited as follows:
100.24 	(1) $50 in the general fund;
100.25 	(2) $3 in the state government special revenue fund to be appropriated to the 
100.26 	commissioner of education public safety for parenting time centers under section 119A.37;
100.27 	(3) $2 in the special revenue fund to be appropriated to the commissioner of health 
100.28 	for developing and implementing the MN ENABL program under section 145.9255;
100.29 	(4) $25 in the special revenue fund is appropriated to the commissioner of 
100.30 	employment and economic development for the displaced homemaker program under 
100.31 	section 116L.96; and
101.1 	(5) $5 in the special revenue fund is appropriated to the commissioner of human 
101.2 	services for the Minnesota Healthy Marriage and Responsible Fatherhood Initiative under 
101.3 	section 256.742.
101.4 	(b) Of the $30 fee under subdivision 1b, paragraph (b), $15 must be retained by the 
101.5 	county. The local registrar must pay $15 to the commissioner of finance to be deposited 
101.6 	as follows:
101.7 	(1) $5 as provided in paragraph (a), clauses (2) and (3); and
101.8 	(2) $10 in the special revenue fund is appropriated to the commissioner of 
101.9 	employment and economic development for the displaced homemaker program under 
101.10 	section 116L.96.
101.11 	(c) The increase in the marriage license fee under paragraph (a) provided for in Laws 
101.12 	2004, chapter 273, and disbursement of the increase in that fee to the special fund for the 
101.13 	Minnesota Healthy Marriage and Responsible Fatherhood Initiative under paragraph (a), 
101.14 	clause (5), is contingent upon the receipt of federal funding under United States Code, title 
101.15 	42, section 1315, for purposes of the initiative.

101.16 	Sec. 3. RULEMAKING AUTHORITY.
 101.17 		Subdivision 1.Career and technical education. The commissioner of education 
101.18 	shall adopt rules under Minnesota Statutes, chapter 14, for the administration of career 
101.19 	and technical education programs for grades 7 through 12 under Minnesota Statutes, 
101.20 	sections 124D.452, 124D.4531, and 124D.454, to ensure that the career and technical levy 
101.21 	and programs can be administered to serve students under the current state and local 
101.22 	organizational structures.
101.23 		Subd. 2.Statewide graduation tests. The commissioner of education shall adopt 
101.24 	rules under Minnesota Statutes, chapter 14, for the administration of statewide graduation 
101.25 	tests.

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

101.27 	Sec. 4. COMPENSATION.
 101.28 	(a) The appropriations in this article, and any statutory appropriations from which 
101.29 	state employee compensation is paid from any fund, include an amount sufficient to fund a 
101.30 	compensation increase of at least 3.25 percent of the fiscal year 2007 compensation base 
101.31 	in fiscal year 2008, and compounded at the rate of 3.25 percent in fiscal year 2009. This 
101.32 	amount must be used for that purpose and no other.
101.33 	(b) The set-asides in this article for the Board of Teaching and the Board of School 
101.34 	Administrators include an amount sufficient to fund a compensation increase of at 
102.1 	least 3.25 percent of the fiscal year 2007 compensation base in fiscal year 2008, and 
102.2 	compounded at the rate of 3.25 percent in fiscal year 2009. This amount must be used for 
102.3 	that purpose and no other. 

102.4 	Sec. 5. APPROPRIATIONS; DEPARTMENT OF EDUCATION.
 102.5 		Subdivision 1.Department of Education. Unless otherwise indicated, the sums 
102.6 	indicated in this section are appropriated from the general fund to the Department of 
102.7 	Education for the fiscal years designated.
102.8 		Subd. 2.Department. (a) For the Department of Education:

102.9		$
	23,329,000
	.....
	2008
	
102.10		$
	23,873,000
	.....
	2009
	
102.11 	Any balance in the first year does not cancel but is available in the second year.
102.12 	(b) $260,000 each year is for the Minnesota Children's Museum.
102.13 	(c) $41,000 each year is for the Minnesota Academy of Science.
102.14 	(d) $620,000 in fiscal year 2008 and $635,000 in fiscal year 2009 are for the Board 
102.15 	of Teaching.
102.16 	(e) $163,000 in fiscal year 2008 and $172,000 in fiscal year 2009 are for the Board 
102.17 	of School Administrators.
102.18 	(f) $50,000 each year is for the Duluth Children's Museum.
102.19 	(g) $1,150,000 each year is for the value-added index assessment.
102.20 	(h) The expenditures of federal grants and aids as shown in the biennial budget 
102.21 	document and its supplements are approved and appropriated and shall be spent as 
102.22 	indicated.
102.23 	(i) None of the amounts appropriated under this subdivision may be used for 
102.24 	Minnesota's Washington, D.C., office.

102.25 	Sec. 6. APPROPRIATIONS; MINNESOTA STATE ACADEMIES.
 102.26 	The sums indicated in this section are appropriated from the general fund to the 
102.27 	Minnesota State Academies for the Deaf and the Blind for the fiscal years designated:

102.28		$
	11,287,000
	.....
	2008
	
102.29		$
	11,619,000
	.....
	2009
	
102.30 	Any balance in the first year does not cancel but is available in the second year.

102.31 	Sec. 7. APPROPRIATIONS; PERPICH CENTER FOR ARTS EDUCATION.
 103.1 	The sums indicated in this section are appropriated from the general fund to the 
103.2 	Perpich Center for Arts Education for the fiscal years designated:

103.3		$
	6,792,000
	.....
	2008
	
103.4		$
	6,967,000
	.....
	2009
	
103.5 	Any balance in the first year does not cancel but is available in the second year.

103.6 	ARTICLE 11
103.7 	EDUCATION FORECAST ADJUSTMENTS
103.8 	A. GENERAL EDUCATION

103.9 	Section 1. Laws 2005, First Special Session chapter 5, article 1, section 54, subdivision 
103.10 	2, as amended by Laws 2006, chapter 282, article 3, section 2, is amended to read:
103.11 		Subd. 2General education aid  For general education  aid under Minnesota Statutes, 
103.12 	section 126C.13, subdivision 4:  

103.13		$
	 5,819,153,000
	.....
	2006
	
103.14
103.15		$
	5,472,238,000
5,453,693,000
	.....
	2007
	
103.16 	The 2006 appropriation includes $787,978,000 for 2005 and $5,031,175,000 for 
103.17 	2006.  
103.18 	The 2007 appropriation includes $513,848,000 $518,218,000 for 2006 and 
103.19 	$4,958,390,000 $4,935,475,000 for 2007.

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

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

103.26		$
	55,000
	.....
	2006
	
103.27
103.28		$
	55,000
93,000
	.....
	2007

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

103.30 	Sec. 3. Laws 2005, First Special Session chapter 5, article 1, section 54, subdivision 5, 
103.31 	as amended by Laws 2006, chapter 282, article 7, section 2, is amended to read:
104.1 		Subd. 5.Abatement revenue. For abatement aid under  Minnesota Statutes, section 
104.2 	127A.49:

104.3		$
	909,000
	.....
	2006
	
104.4
104.5		$
	1,026,000
765,000
	.....
	2007
	
104.6 	The 2006 appropriation includes $187,000 for 2005 and   $722,000 for 2006.  
104.7 	The 2007 appropriation includes  $80,000 for 2006 and   $946,000 $685,000 for 2007.

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

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

104.13
104.14		$
	527,000
388,000
	.....
	2007
	
104.15 	The 2007 appropriation includes $0 for 2006 and $527,000 $388,000 for 2007.  

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

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

104.21		$
	15,458,000
	.....
	2006
	
104.22
104.23		$
	15,991,000
15,972,000
	.....
	2007
	
104.24 	The 2006 appropriation includes  $1,864,000 for 2005 and   $13,594,000 for 2006.
104.25 	The 2007 appropriation includes  $1,510,000 for 2006 and   $14,481,000 $14,462,000
104.26 	for 2007.

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

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

105.1		$
	21,371,000
	.....
	2006
	
105.2
105.3		$
	20,843,000
21,133,000
	.....
	2007
	
105.4 	The 2006 appropriation includes $3,274,000 for 2005 and   $18,097,000 for 2006.
105.5 	The 2007 appropriation includes  $2,010,000 for 2006 and   $18,833,000 $19,123,000
105.6 	for 2007.

105.7 	EFFECTIVE DATE. This section is effective the day following final enactment.
105.8 	B. EDUCATION EXCELLENCE

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

105.13		$
	25,331,000
	.....
	2006
	
105.14
105.15		$
	27,806,000
27,795,000
	.....
	2007
	
105.16 	The 2006 appropriation includes  $3,173,000 for 2005 and   $22,158,000 for 2006.  
105.17 	The 2007 appropriation includes  $2,462,000 for 2006 and   $25,344,000 $25,333,000
105.18 	for 2007.  

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

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

105.24		$
	1,291,000
	.....
	2006
	
105.25
105.26		$
	2,347,000
2,316,000
	.....
	2007
	
105.27 	The 2006 appropriation includes $0 for 2005 and $1,291,000 for 2006.  
105.28 	The 2007 appropriation includes  $143,000 for 2006 and   $2,204,000 $2,173,000
105.29 	for 2007.  

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

105.31 	Sec. 9. Laws 2005, First Special Session chapter 5, article 2, section 84, subdivision 4, 
105.32 	as amended by Laws 2006, chapter 282, article 7, section 8, is amended to read:
106.1 		Subd. 4. Integration aid. For integration aid under  Minnesota Statutes, section 
106.2 	124D.86, subdivision 5:  

106.3		$
	59,404,000
	.....
	2006
	
106.4
106.5		$
	58,405,000
58,075,000
	.....
	2007
	
106.6 	The 2006 appropriation includes $8,545,000 for 2005 and   $50,859,000 for 2006.  
106.7 	The 2007 appropriation includes  $5,650,000 for 2006 and   $52,755,000 $52,425,000
106.8 	for 2007.  

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

106.10 	Sec. 10. Laws 2005, First Special Session chapter 5, article 2, section 84, subdivision 
106.11 	6, as amended by Laws 2006, chapter 282, article 7, section 9, is amended to read:
106.12 		Subd. 6. Interdistrict desegregation or integration transportation grants. For 
106.13 	interdistrict desegregation or integration transportation grants under Minnesota Statutes, 
106.14 	section 124D.87:

106.15		$
	6,032,000
	.....
	2006
	
106.16
106.17		$
	10,134,000
8,169,000
	.....
	2007

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

106.19 	Sec. 11. Laws 2005, First Special Session chapter 5, article 2, section 84, subdivision 
106.20 	10, as amended by Laws 2006, chapter 282, article 7, section 11, is amended to read:
106.21 		Subd. 10. Tribal contract schools. For tribal contract  school aid under Minnesota 
106.22 	Statutes, section 124D.83:  

106.23		$
	2,338,000
	.....
	2006
	
106.24
106.25		$
	2,357,000
2,060,000
	.....
	2007
	
106.26 	The 2006 appropriation includes $348,000 for 2005 and   $1,990,000 for 2006.  
106.27 	The 2007 appropriation includes  $221,000 for 2006 and   $2,136,000 $1,839,000
106.28 	for 2007.  

106.29 	EFFECTIVE DATE. This section is effective the day following final enactment.
106.30 	C. SPECIAL EDUCATION

106.31 	Sec. 12. Laws 2005, First Special Session chapter 5, article 3, section 18, subdivision 
106.32 	3, as amended by Laws 2006, chapter 282, article 7, section 13, is amended to read:
107.1 		Subd. 3. Aid for children with disabilities. For aid  under Minnesota Statutes, 
107.2 	section 125A.75, subdivision 3, for  children with disabilities placed in residential facilities  
107.3 	within the district boundaries for whom no district of residence  can be determined:  

107.4		$
	1,527,000
	.....
	2006
	
107.5
107.6		$
	1,624,000
1,410,000
	.....
	2007
	
107.7 	If the appropriation for either year is insufficient, the  appropriation for the other 
107.8 	year is available.  

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

107.10 	Sec. 13. Laws 2005, First Special Session chapter 5, article 3, section 18, subdivision 
107.11 	4, as amended by Laws 2006, chapter 282, article 7, section 14, is amended to read:
107.12 		Subd. 4. Travel for home-based services. For aid for  teacher travel for home-based 
107.13 	services under Minnesota Statutes,  section 125A.75, subdivision 1:  

107.14		$
	198,000
	.....
	2006
	
107.15
107.16		$
	195,000
224,000
	.....
	2007
	
107.17 	The 2006 appropriation includes $28,000 for 2005 and   $170,000 for 2006.  
107.18 	The 2007 appropriation includes  $18,000 for 2006 and   $177,000 $206,000 for 2007.  

107.19 	EFFECTIVE DATE. This section is effective the day following final enactment.
107.20 	D. FACILITIES

107.21 	Sec. 14. Laws 2005, First Special Session chapter 5, article 4, section 25, subdivision 
107.22 	2, as amended by Laws 2006, chapter 282, article 7, section 18, is amended to read:
107.23 		Subd. 2. Health and safety revenue. For health and  safety aid according to 
107.24 	Minnesota Statutes, section 123B.57,  subdivision 5:  

107.25		$
	823,000
	.....
	2006
	
107.26
107.27		$
	352,000
249,000
	.....
	2007
	
107.28 	The 2006 appropriation includes $211,000 for 2005 and   $612,000 for 2006.  
107.29 	The 2007 appropriation includes  $68,000 for 2006 and   $284,000 $181,000 for 2007.  

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

107.31 	Sec. 15. Laws 2005, First Special Session chapter 5, article 4, section 25, subdivision 
107.32 	3, as amended by Laws 2006, chapter 282, article 5, section 2, is amended to read:
108.1 		Subd. 3. Debt service equalization. For debt service aid  according to Minnesota 
108.2 	Statutes, section 123B.53, subdivision 6:  

108.3		$
	27,206,000
	.....
	2006
	
108.4
108.5		$
	18,410,000
18,395,000
	.....
	2007
	
108.6 	The 2006 appropriation includes $4,654,000 for 2005 and   $22,552,000 for 2006.  
108.7 	The 2007 appropriation includes $2,504,000 for 2006 and   $15,906,000 $15,891,000
108.8 	for 2007.  

108.9 	EFFECTIVE DATE. This section is effective the day following final enactment.
108.10 	E. NUTRITION

108.11 	Sec. 16. Laws 2005, First Special Session chapter 5, article 5, section 17, subdivision 
108.12 	3, as amended by Laws 2006, chapter 282, article 7, section 20, is amended to read:
108.13 		Subd. 3. Traditional school breakfast; kindergarten  milk. For traditional school 
108.14 	breakfast aid and kindergarten  milk under Minnesota Statutes, sections 124D.1158 and 
108.15 	124D.118:  

108.16		$
	4,856,000
	.....
	2006
	
108.17
108.18		$
	5,044,000
5,175,000
	.....
	2007

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

108.21 	Sec. 17. Laws 2005, First Special Session chapter 5, article 7, section 20, subdivision 
108.22 	2, as amended by Laws 2006, chapter 282, article 7, section 24, is amended to read:
108.23 		Subd. 2. School readiness. For revenue for school  readiness programs under 
108.24 	Minnesota Statutes, sections 124D.15  and 124D.16:  

108.25		$
	9,528,000
	.....
	2006
	
108.26
108.27		$
	9,020,000
9,087,000
	.....
	2007
	
108.28 	The 2006 appropriation includes  $1,415,000 for 2005 and   $8,113,000 for 2006.
108.29 	The 2007 appropriation includes  $901,000 for 2006 and   $8,119,000 $8,186,000
108.30 	for 2007.

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

109.1 	Sec. 18. Laws 2005, First Special Session chapter 5, article 7, section 20, subdivision 
109.2 	3, as amended by Laws 2006, chapter 282, article 2, section 24, is amended to read:
109.3 		Subd. 3. Early childhood family education aid. For early  childhood family 
109.4 	education aid under Minnesota Statutes, section  124D.135:

109.5		$
	15,105,000
	.....
	2006
	
109.6
109.7		$
	17,792,000
17,639,000
	.....
	2007
	
109.8 	The 2006 appropriation includes $1,859,000 for 2005 and $13,246,000 for 2006.
109.9 	The 2007 appropriation includes $1,471,000 for 2006 and $16,321,000 $16,168,000
109.10 	for 2007.

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

109.12 	Sec. 19. Laws 2005, First Special Session chapter 5, article 7, section 20, subdivision 
109.13 	4, as amended by Laws 2006, chapter 282, article 2, section 25, is amended to read:
109.14 		Subd. 4. Health and developmental screening aid. For  health and developmental 
109.15 	screening aid under Minnesota Statutes,  sections 121A.17 and 121A.19:

109.16		$
	3,000,000
	.....
	2006
	
109.17
109.18		$
	2,997,000
2,880,000
	.....
	2007
	
109.19 	The 2006 appropriation includes $417,000 for 2005 and  $2,583,000 for 2006 
109.20 	The 2007 appropriation includes $287,000 for 2006 and $2,710,000 $2,593,000
109.21 	for 2007.

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

109.23 	Sec. 20. Laws 2006, chapter 282, article 2, section 28, subdivision 4, is amended to 
109.24 	read:
109.25 		Subd. 4.Early childhood Part C. For the expansion of early childhood Part C 
109.26 	services:

109.27		$
	400,000-0-
	.....
	2007

109.28 	EFFECTIVE DATE. This section is effective the day following final enactment.
109.29 	G. PREVENTION

109.30 	Sec. 21. Laws 2005, First Special Session chapter 5, article 8, section 8, subdivision 2, 
109.31 	as amended by Laws 2006, chapter 282, article 7, section 25, is amended to read:
110.1 	Subd. 2.  Community education aid. For community  education aid under Minnesota 
110.2 	Statutes, section 124D.20:  

110.3		$
	2,043,000
	.....
	2006
	
110.4
110.5		$
	1,949,000
1,942,000
	.....
	2007
	
110.6 	The 2006 appropriation includes  $385,000 for 2005 and   $1,658,000 for 2006.  
110.7 	The 2007 appropriation includes  $184,000 for 2006 and   $1,765,000 $1,758,000
110.8 	for 2007.

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

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

110.14		$
	17,000
	.....
	2006
	
110.15		$
	4,0006,000
	.....
	2007
	
110.16 	The 2006 appropriation includes $4,000 for 2005 and $13,000  for 2006.  
110.17 	The 2007 appropriation includes  $1,000 for 2006 and  $3,000 $5,000 for 2007.  

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

110.20 	Sec. 23. Laws 2005, First Special Session chapter 5, article 9, section 4, subdivision 2, 
110.21 	is amended to read:
110.22 		Subd. 2.Adult basic education aid. For adult basic education aid under Minnesota 
110.23 	Statutes:

110.24		$
	36,518,000
	.....
	2006
	
110.25
110.26		$
	36,540,000
37,486,000
	.....
	2007
	
110.27 	The 2006 appropriation includes $5,707,000 for 2005 and $30,811,000 for 2006.
110.28 	The 2007 appropriation includes $5,737,000 $3,654,000 for 2006 and $30,803,000
110.29 	$33,832,000 for 2007.

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

111.1 	ARTICLE 12
111.2 	TECHNICAL AND CONFORMING AMENDMENTS

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

111.9 	Sec. 2. Minnesota Statutes 2006, section 123A.73, subdivision 8, is amended to read:
111.10 		Subd. 8.Taxable property. As of the effective date of a consolidation of districts or 
111.11 	the dissolution of a district and its attachment to one or more existing districts pursuant 
111.12 	to chapter 123A, and subject to the conditions of section 126C.42, subdivision 1, all 
111.13 	the taxable property which is in the newly created or enlarged district and which was 
111.14 	previously taxable for the payment of any statutory operating debt theretofore incurred by 
111.15 	any preexisting district of which the taxable property was a part prior to the consolidation 
111.16 	or dissolution and attachment shall remain taxable for the payment of that debt and shall 
111.17 	not become taxable for the payment of any statutory operating debt theretofore incurred 
111.18 	by any preexisting district of which the taxable property was not a part prior to the 
111.19 	consolidation or dissolution and attachment. The amount of statutory operating debt 
111.20 	attributable to that taxable property and to the newly created or enlarged district in which 
111.21 	it is located, and the amount of a preexisting district's reserved fund balance reserve 
111.22 	account for purposes of statutory operating debt reduction attributable to the newly created 
111.23 	or enlarged district, shall be apportioned according to the proportion which the adjusted 
111.24 	net tax capacity of that part of the preexisting district bears to the total adjusted net tax 
111.25 	capacity of the entire preexisting district at the time of the consolidation or dissolution 
111.26 	and attachment. This apportionment shall be made by the county auditor and shall 
111.27 	be incorporated as an annex to the order of the commissioner dividing the assets and 
111.28 	liabilities of the component districts. As used in this section, "statutory operating debt" 
111.29 	shall have the meaning given it in section 123B.81. 

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

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

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

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

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

112.27 	Sec. 8. Minnesota Statutes 2006, section 124D.34, subdivision 7, is amended to read:
112.28 		Subd. 7.Foundation staff. The commissioner of education shall appoint the 
112.29 	executive director of the foundation from three candidates nominated and submitted by the 
112.30 	foundation board of directors and, as necessary, other staff who shall perform duties and 
112.31 	have responsibilities solely related to the foundation. The employees appointed are not 
113.1 	state employees under chapter 43A, but are covered under section 3.736. The employees 
113.2 	may participate in the state health and state insurance plans for employees in unclassified 
113.3 	service. The employees shall be supervised by the executive director. 
113.4 	The commissioner shall appoint from the Office of Lifework Development a liaison 
113.5 	to the foundation board from the division in the department responsible for career and 
113.6 	technical education.

113.7 	Sec. 9. Minnesota Statutes 2006, section 124D.65, subdivision 11, is amended to read:
113.8 		Subd. 11.Allocations from cooperative units. For the purposes of this section 
113.9 	and section 125A.77, pupils of limited English proficiency enrolled in a cooperative 
113.10 	or intermediate school district unit shall be counted by the school district of residence, 
113.11 	and the cooperative unit shall allocate its approved expenditures for limited English 
113.12 	proficiency programs among participating school districts. Limited English proficiency 
113.13 	aid for services provided by a cooperative or intermediate school district shall be paid to 
113.14 	the participating school districts. 

113.15 	Sec. 10. Minnesota Statutes 2006, section 125A.39, is amended to read:
113.16 	125A.39 LOCAL INTERAGENCY AGREEMENTS.
113.17 	School boards and the county board may enter into agreements to cooperatively 
113.18 	serve and provide funding for children with disabilities, under age five, and their families 
113.19 	within a specified geographic area.
113.20 	The local interagency agreement must address, at a minimum, the following issues:
113.21 	(1) responsibilities of local agencies on local interagency early intervention 
113.22 	committees (IEIC's), consistent with section 125A.38; 
113.23 	(2) assignment of financial responsibility for early intervention services;
113.24 	(3) methods to resolve intraagency and interagency disputes;
113.25 	(4) identification of current resources and recommendations about the allocation of 
113.26 	additional state and federal early intervention funds under the auspices of United States 
113.27 	Code, title 20, section 1471 et seq. (Part C, Public Law 102-119 108-446) and United 
113.28 	States Code, title 20, section 631, et seq. (Chapter I, Public Law 89-313);
113.29 	(5) data collection; and
113.30 	(6) other components of the local early intervention system consistent with Public 
113.31 	Law 102-119.

113.32 	Sec. 11. Minnesota Statutes 2006, section 125A.42, is amended to read:
113.33 	125A.42 PROCEDURAL SAFEGUARDS; PARENT AND CHILD RIGHTS.
114.1 	(a) This section applies to local school and county boards for children from birth 
114.2 	through age two who are eligible for Part H C, Public Law 102-119 108-446, and their 
114.3 	families. This section must be consistent with the Individuals with Disabilities Education 
114.4 	Act, United States Code, title 20, sections 1471 to 1485 (Part H C, Public Law 102-119
114.5 	108-446), regulations adopted under United States Code, title 20, sections 1471 to 1485, 
114.6 	and sections 125A.259 to 125A.48. 
114.7 	(b) A parent has the right to:
114.8 	(1) inspect and review early intervention records;
114.9 	(2) prior written notice of a proposed action in the parents' native language unless it 
114.10 	is clearly not feasible to do so;
114.11 	(3) give consent to any proposed action;
114.12 	(4) selectively accept or decline any early intervention service; and
114.13 	(5) resolve issues regarding the identification, evaluation, or placement of the child, 
114.14 	or the provision of appropriate early intervention services to the child and the child's 
114.15 	family through an impartial due process hearing pursuant to section 125A.46. 
114.16 	(c) The eligible child has the right to have a surrogate parent appointed by a school 
114.17 	district as required by section 125A.07. 

114.18 	Sec. 12. Minnesota Statutes 2006, section 125A.44, is amended to read:
114.19 	125A.44 COMPLAINT PROCEDURE.
114.20 	(a) An individual or organization may file a written signed complaint with the 
114.21 	commissioner of the state lead agency alleging that one or more requirements of the Code 
114.22 	of Federal Regulations, title 34, part 303, is not being met. The complaint must include:
114.23 	(1) a statement that the state has violated the Individuals with Disabilities Education 
114.24 	Act, United States Code, title 20, section 1471 et seq. (Part C, Public Law 102-119
114.25 	108-446) or Code of Federal Regulations, title 34, section 303; and
114.26 	(2) the facts on which the complaint is based.
114.27 	(b) The commissioner of the state lead agency shall receive and coordinate with 
114.28 	other state agencies the review and resolution of a complaint within 60 calendar days 
114.29 	according to the state interagency agreement required under section 125A.48. The 
114.30 	development and disposition of corrective action orders for nonschool agencies shall be 
114.31 	determined by the State Agency Committee (SAC). Failure to comply with corrective 
114.32 	orders may result in fiscal actions or other measures. 

114.33 	Sec. 13. Minnesota Statutes 2006, section 125A.45, is amended to read:
114.34 	125A.45 INTERAGENCY DISPUTE PROCEDURE.
115.1 	(a) A dispute between a school board and a county board that is responsible for 
115.2 	implementing the provisions of section 125A.29 regarding early identification, child and 
115.3 	family assessment, service coordination, and IFSP development and implementation must 
115.4 	be resolved according to this subdivision when the dispute involves services provided 
115.5 	to children and families eligible under the Individuals with Disabilities Education Act, 
115.6 	United States Code, title 20, section 1471 et seq. (Part C, Public Law 102-119 108-446). 
115.7 	(b) A dispute occurs when the school board and county board are unable to agree as 
115.8 	to who is responsible to coordinate, provide, pay for, or facilitate payment for services 
115.9 	from public and private sources.
115.10 	(c) Written and signed disputes must be filed with the local primary agency.
115.11 	(d) The local primary agency must attempt to resolve the matter with the involved 
115.12 	school board and county board and may request mediation from the commissioner of the 
115.13 	state lead agency for this purpose.
115.14 	(e) When interagency disputes have not been resolved within 30 calendar days, the 
115.15 	local primary agency must request the commissioner of the state lead agency to review 
115.16 	the matter with the commissioners of health and human services and make a decision. 
115.17 	The commissioner must provide a consistent process for reviewing those procedures. The 
115.18 	commissioners' decision is binding subject to the right of an aggrieved party to appeal to 
115.19 	the state Court of Appeals.
115.20 	(f) The local primary agency must ensure that eligible children and their families 
115.21 	receive early intervention services during resolution of a dispute. While a local dispute is 
115.22 	pending, the local primary agency must either assign financial responsibility to an agency 
115.23 	or pay for the service from the early intervention account under section 125A.35. If in 
115.24 	resolving the dispute, it is determined that the assignment of financial responsibility was 
115.25 	inappropriate, the responsibility for payment must be reassigned to the appropriate agency 
115.26 	and the responsible agency must make arrangements for reimbursing any expenditures 
115.27 	incurred by the agency originally assigned financial responsibility. 

115.28 	Sec. 14. Minnesota Statutes 2006, section 125B.15, is amended to read:
115.29 	125B.15 INTERNET ACCESS FOR STUDENTS.
115.30 	(a) Recognizing the difference between school libraries, school computer labs, and 
115.31 	school media centers, which serve unique educational purposes, and public libraries, 
115.32 	which are designed for public inquiry, all computers at a school site with access to the 
115.33 	Internet available for student use must be equipped to restrict, including by use of 
115.34 	available software filtering technology or other effective methods, all student access 
116.1 	to material that is reasonably believed to be obscene or child pornography or material 
116.2 	harmful to minors under federal or state law.
116.3 	(b) A school site is not required to purchase filtering technology if the school site 
116.4 	would incur more than incidental expense in making the purchase.
116.5 	(c) A school district receiving technology revenue under section 125B.25 125B.26
116.6 	must prohibit, including through use of available software filtering technology or other 
116.7 	effective methods, adult access to material that under federal or state law is reasonably 
116.8 	believed to be obscene or child pornography. 
116.9 	(d) A school district, its agents or employees, are immune from liability for failure 
116.10 	to comply with this section if they have made a good faith effort to comply with the 
116.11 	requirements of this section.
116.12 	(e) "School site" means an education site as defined in section 123B.04, subdivision 
116.13 	1, or charter school under section 124D.10. 

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

116.19 	Sec. 16. Minnesota Statutes 2006, section 126C.05, subdivision 1, is amended to read:
116.20 		Subdivision 1.Pupil unit. Pupil units for each Minnesota resident pupil under the 
116.21 	age of 21 or who meets the requirements of section 120A.20, subdivision 1, paragraph 
116.22 	(c), in average daily membership enrolled in the district of residence, in another district 
116.23 	under sections 123A.05 to 123A.08, 124D.03, 124D.06, 124D.07,124D.08, or 124D.68; 
116.24 	in a charter school under section 124D.10; or for whom the resident district pays tuition 
116.25 	under section 123A.18, 123A.22, 123A.30, 123A.32, 123A.44, 123A.488, 123B.88, 
116.26 	subdivision 4, 124D.04, 124D.05, 125A.03 to 125A.24, 125A.51, or 125A.65, shall be 
116.27 	counted according to this subdivision. 
116.28 	(a) A prekindergarten pupil with a disability who is enrolled in a program approved 
116.29 	by the commissioner and has an individual education plan is counted as the ratio of the 
116.30 	number of hours of assessment and education service to 825 times 1.25 with a minimum 
116.31 	average daily membership of 0.28, but not more than 1.25 pupil units. 
116.32 	(b) A prekindergarten pupil who is assessed but determined not to be disabled is 
116.33 	counted as the ratio of the number of hours of assessment service to 825 times 1.25. 
117.1 	(c) A kindergarten pupil with a disability who is enrolled in a program approved 
117.2 	by the commissioner is counted as the ratio of the number of hours of assessment and 
117.3 	education services required in the fiscal year by the pupil's individual education program 
117.4 	plan to 875, but not more than one.
117.5 	(d) A kindergarten pupil who is not included in paragraph (c) is counted as .557 of a 
117.6 	pupil unit for fiscal year 2000 and thereafter.
117.7 	(e) A pupil who is in any of grades 1 to 3 is counted as 1.115 pupil units for fiscal 
117.8 	year 2000 and thereafter. 
117.9 	(f) A pupil who is any of grades 4 to 6 is counted as 1.06 pupil units for fiscal 
117.10 	year 1995 and thereafter. 
117.11 	(g) A pupil who is in any of grades 7 to 12 is counted as 1.3 pupil units.
117.12 	(h) A pupil who is in the postsecondary enrollment options program is counted 
117.13 	as 1.3 pupil units.

117.14 	Sec. 17. Minnesota Statutes 2006, section 126C.48, subdivision 7, is amended to read:
117.15 		Subd. 7.Reporting. For each tax settlement, the county auditor shall report 
117.16 	to each school district by fund, the district tax settlement revenue defined in section 
117.17 	123B.75, subdivision 5, paragraph (a), and the amount levied pursuant to section 126C.42, 
117.18 	subdivision 1, on the form specified in section 276.10. The county auditor shall send to 
117.19 	the district a copy of the spread levy report specified in section 275.124. 

117.20 	Sec. 18. Minnesota Statutes 2006, section 134.355, subdivision 9, is amended to read:
117.21 		Subd. 9.Telecommunications aid. An application for regional library 
117.22 	telecommunications aid must, at a minimum, contain information to document the 
117.23 	following:
117.24 	(1) the connections are adequate and employ an open network architecture that 
117.25 	will ensure interconnectivity and interoperability with school districts, postsecondary 
117.26 	education, or other governmental agencies;
117.27 	(2) that the connection is established through the most cost-effective means and that 
117.28 	the regional library has explored and coordinated connections through school districts, 
117.29 	postsecondary education, or other governmental agencies;
117.30 	(3) that the regional library system has filed an e-rate application; and
117.31 	(4) other information, as determined by the commissioner of children, families, and 
117.32 	learning education, to ensure that connections are coordinated, efficient, and cost-effective, 
117.33 	take advantage of discounts, and meet applicable state standards.
118.1 	The library system may include costs associated with cooperative arrangements with 
118.2 	postsecondary institutions, school districts, and other governmental agencies.

118.3 	Sec. 19.  REPEALER.
 118.4 	Minnesota Statutes 2006, sections 123A.22, subdivision 11; and 123B.81, 
118.5 	subdivision 8, are repealed.