1.1 	A bill for an act
1.2 	relating to education; providing for general education, education excellence, 
1.3 	special programs, state agencies, self-sufficiency and lifelong learning;amending 
1.4 	Minnesota Statutes 2006, sections 13.32, by adding a subdivision; 120A.03; 
1.5 	120A.05, subdivision 10a; 120A.22, subdivision 5; 120A.24, subdivisions 1, 
1.6 	2; 120B.02; 120B.023, subdivision 2; 120B.131, subdivision 2; 120B.31, as 
1.7 	amended; 120B.35, as amended; 120B.36, as amended; 120B.362; 121A.035, 
1.8 	subdivision 2; 121A.037; 122A.06, subdivision 4; 122A.07, subdivisions 
1.9 	2, 3; 122A.09, subdivision 4; 122A.14, by adding subdivisions; 122A.18, 
1.10 	subdivisions 2, 2a, by adding subdivisions; 122A.60; 122A.61, subdivision 
1.11 	1; 122A.75, subdivision 1; 123B.14, subdivision 7; 123B.36, subdivision 
1.12 	1; 123B.37, subdivision 1; 123B.51, by adding a subdivision; 123B.59, 
1.13 	subdivision 1; 123B.77, subdivision 3; 123B.81, subdivisions 3, 5; 123B.83, 
1.14 	subdivision 3; 123B.88, subdivision 3; 124D.09, subdivisions 3, 5, 7, 16, 
1.15 	24; 124D.095, subdivision 10; 124D.10, subdivisions 2a, 4a, 6, 6a, 7, 8, 20, 
1.16 	23; 124D.522; 124D.55; 124D.60, subdivision 1; 124D.68, subdivision 2; 
1.17 	125A.02, subdivision 1; 125A.15; 125A.51; 125A.65, subdivision 4, by adding 
1.18 	a subdivision; 125A.744, subdivision 3; 125B.07, by adding a subdivision; 
1.19 	126C.17, subdivision 9; 126C.40, subdivision 6; 134.31, subdivision 6, by adding 
1.20 	a subdivision; 205A.03, subdivision 1; 205A.06, subdivision 1a; 260C.007, 
1.21 	subdivision 19; 299F.30, subdivision 1; Minnesota Statutes 2007 Supplement, 
1.22 	sections 120B.021, subdivision 1; 120B.30; 123B.81, subdivision 4; 124D.095, 
1.23 	subdivisions 3, 4, 7; 124D.10, subdivisions 4, 23a; 124D.531, subdivision 1; 
1.24 	126C.05, subdivision 1; 126C.10, subdivision 34; 127A.49, subdivisions 2, 3; 
1.25 	134.31, subdivision 4a; Laws 2007, chapter 146, article 2, section 46, subdivision 
1.26 	13; proposing coding for new law in Minnesota Statutes, chapters 4; 120A; 
1.27 	120B; 121A; 123B; 124D; 125B; 126C; 127A; 134; repealing Minnesota Statutes 
1.28 	2006, sections 120A.22, subdivision 8; 121A.67; 126C.21, subdivision 1; Laws 
1.29 	2006, chapter 263, article 3, section 16.
1.30 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.31 	ARTICLE 1
1.32 	GENERAL EDUCATION

1.33 	Section 1. Minnesota Statutes 2006, section 123B.14, subdivision 7, is amended to read:
2.1 		Subd. 7.Clerk records. The clerk shall keep a record of all meetings of the 
2.2 	district and the board in books provided by the district for that purpose. The clerk shall, 
2.3 	within three days after an election, notify all persons elected of their election. By August
2.4 	September 15 of each year the clerk shall file with the board a report of the revenues, 
2.5 	expenditures and balances in each fund for the preceding fiscal year. The report together 
2.6 	with vouchers and supporting documents shall subsequently be examined by a public 
2.7 	accountant or the state auditor, either of whom shall be paid by the district, as provided 
2.8 	in section 123B.77, subdivision 3. The board shall by resolution approve the report or 
2.9 	require a further or amended report. By AugustSeptember 15 of each year, the clerk shall 
2.10 	make and transmit to the commissioner certified reports, showing: 
2.11 	(1) The condition and value of school property;
2.12 	(2)(1) The revenues and expenditures in detail, and such other financial information 
2.13 	required by law, rule, or as may be called for by the commissioner;
2.14 	(3)(2) The length of school term and the enrollment and attendance by grades; and
2.15 	(4)(3) Such other items of information as may be called for by the commissioner.
2.16 	The clerk shall enter in the clerk's record book copies of all reports and of the 
2.17 	teachers' term reports, as they appear in the registers, and of the proceedings of any 
2.18 	meeting as furnished by the clerk pro tem, and keep an itemized account of all the 
2.19 	expenses of the district. The clerk shall furnish to the auditor of the proper county, by 
2.20 	October 10September 30 of each year, an attested copy of the clerk's record, showing the 
2.21 	amount of moneyproposed property taxes voted by the district or the board for school 
2.22 	purposes; draw and sign all orders upon the treasurer for the payment of money for bills 
2.23 	allowed by the board for salaries of officers and for teachers' wages and all claims, to be 
2.24 	countersigned by the chair. Such orders must state the consideration, payee, and the 
2.25 	fund and the clerk shall take a receipt therefor. Teachers' wages shall have preference in 
2.26 	the order in which they become due, and no money applicable for teachers' wages shall 
2.27 	be used for any other purpose, nor shall teachers' wages be paid from any fund except 
2.28 	that raised or apportioned for that purpose.

2.29 	Sec. 2. Minnesota Statutes 2006, section 123B.77, subdivision 3, is amended to read:
2.30 		Subd. 3.Statement for comparison and correction. (a) By November 30 of the 
2.31 	calendar year of the submission of the unaudited financial data, the district must provide to 
2.32 	the commissioner audited financial data for the preceding fiscal year. The audit must be 
2.33 	conducted in compliance with generally accepted governmental auditing standards, the 
2.34 	federal Single Audit Act, and the Minnesota legal compliance guide issued by the Office 
2.35 	of the State Auditor. An audited financial statement prepared in a form which will allow 
3.1 	comparison with and correction of material differences in the unaudited financial data 
3.2 	shall be submitted to the commissioner and the state auditor by December 31. The audited 
3.3 	financial statement must also provide a statement of assurance pertaining to uniform 
3.4 	financial accounting and reporting standards compliance and a copy of the management 
3.5 	letter submitted to the district by the school district's auditor.
3.6 	(b) By JanuaryFebruary 15 of the calendar year following the submission of the 
3.7 	unaudited financial data, the commissioner shall convert the audited financial data 
3.8 	required by this subdivision into the consolidated financial statement format required 
3.9 	under subdivision 1a and publish the information on the department's Web site.

3.10 	Sec. 3. Minnesota Statutes 2006, section 123B.81, subdivision 3, is amended to read:
3.11 		Subd. 3.Debt verification. The commissioner shall establish a uniform auditing or 
3.12 	other verification procedure for districts to determine whether a statutory operating debt 
3.13 	exists in any Minnesota school district as of June 30, 1977. This procedure must identify 
3.14 	all interfund transfers made during fiscal year 1977 from a fund included in computing 
3.15 	statutory operating debt to a fund not included in computing statutory operating debt. 
3.16 	The standards for this uniform auditing or verification procedure must be promulgated 
3.17 	by the state board pursuant to chapter 14. If a district applies to the commissioner for 
3.18 	a statutory operating debt verification or if the unaudited financial statement for the 
3.19 	school year ending June 30, 1977 reveals that a statutory operating debt might exist, the 
3.20 	commissioner shall require a verification of the amount of the statutory operating debt 
3.21 	which actually does exist.

3.22 	Sec. 4. Minnesota Statutes 2007 Supplement, section 123B.81, subdivision 4, is 
3.23 	amended to read:
3.24 		Subd. 4.Debt elimination. If an audit or other verification procedure conducted 
3.25 	pursuant to subdivision 3 determines that a statutory operating debt exists, a district 
3.26 	must follow the procedures set forth in this section 123B.83 to eliminate this statutory 
3.27 	operating debt. 

3.28 	Sec. 5. Minnesota Statutes 2006, section 123B.81, subdivision 5, is amended to read:
3.29 		Subd. 5.Certification of debt. The commissioner shall certify the amount of 
3.30 	statutory operating debt for each district. Prior to June 30, 1979, the commissioner may, 
3.31 	on the basis of corrected figures, adjust the total amount of statutory operating debt 
3.32 	certified for any district.

4.1 	Sec. 6. Minnesota Statutes 2006, section 123B.83, subdivision 3, is amended to read:
4.2 		Subd. 3.Failure to limit expenditures. If a district does not limit its expenditures in 
4.3 	accordance with this section, the commissioner may so notify the appropriate committees 
4.4 	of the legislature by no later than January 1February 15 of the year following the end 
4.5 	of that fiscal year.

4.6 	Sec. 7. Minnesota Statutes 2006, section 124D.10, subdivision 6a, is amended to read:
4.7 		Subd. 6a.Audit report. (a) The charter school must submit an audit report to the 
4.8 	commissioner by December 31 each year. 
4.9 	(b) The charter school, with the assistance of the auditor conducting the audit, must 
4.10 	include with the report a copy of all charter school agreements for corporate management 
4.11 	services. If the entity that provides the professional services to the charter school is 
4.12 	exempt from taxation under section 501 of the Internal Revenue Code of 1986, that entity 
4.13 	must file with the commissioner by February 15 a copy of the annual return required under 
4.14 	section 6033 of the Internal Revenue Code of 1986. 
4.15 	(c) If the commissioner receives as part of thean audit report a management letter
4.16 	indicating that a material weakness exists in the financial reporting systems of a charter 
4.17 	school, the charter school must submit a written report to the commissioner explaining 
4.18 	how the material weakness will be resolved. 
4.19 	(d) Upon the request of an individual, the charter school must make available in a 
4.20 	timely fashion the minutes of meetings of members, the board of directors, and committees 
4.21 	having any of the authority of the board of directors, and statements showing the financial 
4.22 	result of all operations and transactions affecting income and surplus during the school's 
4.23 	last annual accounting period and a balance sheet containing a summary of its assets and 
4.24 	liabilities as of the closing date of the accounting period.

4.25 	Sec. 8. Minnesota Statutes 2006, section 124D.10, subdivision 8, is amended to read:
4.26 		Subd. 8.State and local requirements. (a) A charter school shall meet all 
4.27 	applicablefederal, state, and local health and safety requirements applicable to school 
4.28 	districts.
4.29 	(b) A school sponsored by a school board may be located in any district, unless the 
4.30 	school board of the district of the proposed location disapproves by written resolution.
4.31 	(c) A charter school must be nonsectarian in its programs, admission policies, 
4.32 	employment practices, and all other operations. A sponsor may not authorize a charter 
4.33 	school or program that is affiliated with a nonpublic sectarian school or a religious 
4.34 	institution.
5.1 	(d) Charter schools must not be used as a method of providing education or 
5.2 	generating revenue for students who are being home-schooled.
5.3 	(e) The primary focus of a charter school must be to provide a comprehensive 
5.4 	program of instruction for at least one grade or age group from five through 18 years 
5.5 	of age. Instruction may be provided to people younger than five years and older than 
5.6 	18 years of age.
5.7 	(f) A charter school may not charge tuition.
5.8 	(g) A charter school is subject to and must comply with chapter 363A and section 
5.9 	121A.04. 
5.10 	(h) A charter school is subject to and must comply with the Pupil Fair Dismissal 
5.11 	Act, sections 121A.40 to 121A.56, and the Minnesota Public School Fee Law, sections 
5.12 	123B.34 to 123B.39. 
5.13 	(i) A charter school is subject to the same financial audits, audit procedures, and 
5.14 	audit requirements as a district. Audits must be conducted in compliance with generally 
5.15 	accepted governmental auditing standards, the Federal Single Audit Act, if applicable, 
5.16 	and section 6.65. A charter school is subject to and must comply with sections 15.054; 
5.17 	118A.01; 118A.02; 118A.03; 118A.04; 118A.05; 118A.06; 123B.52, subdivision 5; 
5.18 	471.38; 471.391; 471.392; 471.425; 471.87; 471.88, subdivisions 1, 2, 3, 4, 5, 6, 12, 13, 
5.19 	and 15; 471.881; and 471.89. The audit must comply with the requirements of sections 
5.20 	123B.75 to 123B.83, except to the extent deviations are necessary because of the program 
5.21 	at the school. Deviations must be approved by the commissioner. The Department 
5.22 	of Education, state auditor, or legislative auditor may conduct financial, program, or 
5.23 	compliance audits. A charter school determined to be in statutory operating debt under 
5.24 	sections 123B.81 to 123B.83 must submit a plan under section 123B.81, subdivision 4. 
5.25 	(j) A charter school is a district for the purposes of tort liability under chapter 466.
5.26 	(k) A charter school must comply with sections 13.32; 120A.22, subdivision 7; 
5.27 	121A.75; and 260B.171, subdivisions 3 and 5. 
5.28 	(l) A charter school is subject to the Pledge of Allegiance requirement under section 
5.29 	121A.11, subdivision 3. 

5.30 	Sec. 9. Minnesota Statutes 2006, section 124D.10, subdivision 23, is amended to read:
5.31 		Subd. 23.Causes for nonrenewal or termination of charter school contract. (a) 
5.32 	The duration of the contract with a sponsor must be for the term contained in the contract 
5.33 	according to subdivision 6. The sponsor may or may not renew a contract at the end of 
5.34 	the term for any ground listed in paragraph (b). A sponsor may unilaterally terminate a 
5.35 	contract during the term of the contract for any ground listed in paragraph (b). At least 60 
6.1 	days before not renewing or terminating a contract, the sponsor shall notify the board of 
6.2 	directors of the charter school of the proposed action in writing. The notice shall state the 
6.3 	grounds for the proposed action in reasonable detail and that the charter school's board of 
6.4 	directors may request in writing an informal hearing before the sponsor within 14 days 
6.5 	of receiving notice of nonrenewal or termination of the contract. Failure by the board of 
6.6 	directors to make a written request for a hearing within the 14-day period shall be treated 
6.7 	as acquiescence to the proposed action. Upon receiving a timely written request for a 
6.8 	hearing, the sponsor shall give reasonable notice to the charter school's board of directors 
6.9 	of the hearing date. The sponsor shall conduct an informal hearing before taking final 
6.10 	action. The sponsor shall take final action to renew or not renew a contract by the last day 
6.11 	of classes in the school year. If the sponsor is a local board, the school's board of directors 
6.12 	may appeal the sponsor's decision to the commissioner.
6.13 	(b) A contract may be terminated or not renewed upon any of the following grounds:
6.14 	(1) failure to meet the requirements for pupil performance contained in the contract;
6.15 	(2) failure to meet generally accepted standards of fiscal management;
6.16 	(3) violations of law; or
6.17 	(4) other good cause shown.
6.18 	If a contract is terminated or not renewed under this paragraph, the school must be 
6.19 	dissolved according to the applicable provisions of chapter 308A or 317A, except when 
6.20 	the commissioner approves the decision of a different eligible sponsor to authorize the 
6.21 	charter school.
6.22 	(c) If at the end of a contract term, either the sponsor or the charter school board of 
6.23 	directors wants to voluntarily terminate the contract, a change in sponsors is allowed if the 
6.24 	commissioner approves the decision of a different eligible sponsor to authorize the charter 
6.25 	school. The commissioner shall consider whether the charter school and prospective 
6.26 	new sponsor have addressed any outstanding issues raised by the previous sponsor when 
6.27 	determining whether to grant the change of sponsor. The party intending to terminate the 
6.28 	contract must notify the other party and the commissioner of its intent at least 90 days 
6.29 	before the date on which the contract ends. The sponsor that is a party to the existing 
6.30 	contract at least must inform the approved different eligible sponsor about the fiscal and 
6.31 	student performance of the school. If no different eligible sponsor is approved, the school 
6.32 	must be dissolved according to applicable law and the terms of the contract.
6.33 	(d) The commissioner, after providing reasonable notice to the board of directors 
6.34 	of a charter school and the existing sponsor, and after providing an opportunity for a 
6.35 	public hearing, may terminate the existing sponsorial relationship if the charter school 
6.36 	has a history of:
7.1 	(1) financial mismanagement; or
7.2 	(2) repeated violations of the law.

7.3 	Sec. 10. Minnesota Statutes 2007 Supplement, section 126C.10, subdivision 34, 
7.4 	is amended to read:
7.5 		Subd. 34.Basic alternative teacher compensation aid. (a) For fiscal years 
7.6 	2007 and later, 2008, and 2009, the basic alternative teacher compensation aid for a 
7.7 	school district with a plan approved under section 122A.414, subdivision 2b, equals 65
7.8 	73.1 percent of the alternative teacher compensation revenue under section 122A.415, 
7.9 	subdivision 1. The basic alternative teacher compensation aid for an intermediate school 
7.10 	district or charter school with a plan approved under section 122A.414, subdivisions 2a 
7.11 	and 2b, if the recipient is a charter school, equals $260 times the number of pupils enrolled 
7.12 	in the school on October 1 of the previous fiscal year, or on October 1 of the current fiscal 
7.13 	year for a charter school in the first year of operation, times the ratio of the sum of the 
7.14 	alternative teacher compensation aid and alternative teacher compensation levy for all 
7.15 	participating school districts to the maximum alternative teacher compensation revenue 
7.16 	for those districts under section 122A.415, subdivision 1.
7.17 	(b) For fiscal years 2010 and later, the basic alternative teacher compensation aid 
7.18 	for a school district with a plan approved under section 122A.414, subdivision 2b, equals 
7.19 	65 percent of the alternative teacher compensation revenue under section 122A.415, 
7.20 	subdivision 1. The basic alternative teacher compensation aid for an intermediate school 
7.21 	district or charter school with a plan approved under section 122A.414, subdivisions 2a 
7.22 	and 2b, if the recipient is a charter school, equals $260 times the number of pupils enrolled 
7.23 	in the school on October 1 of the previous fiscal year, or on October 1 of the current fiscal 
7.24 	year for a charter school in the first year of operation, times the ratio of the sum of the 
7.25 	alternative teacher compensation aid and alternative teacher compensation levy for all 
7.26 	participating school districts to the maximum alternative teacher compensation revenue 
7.27 	for those districts under section 122A.415, subdivision 1.
7.28 	(b)(c) Notwithstanding paragraphs (a) and (b) and section 122A.415, subdivision 
7.29 	1, the state total basic alternative teacher compensation aid entitlement must not exceed 
7.30 	$75,636,000 for fiscal year 2007 and later. The commissioner must limit the amount 
7.31 	of alternative teacher compensation aid approved under section 122A.415 so as not to 
7.32 	exceed these limits.

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

7.34 	Sec. 11. Minnesota Statutes 2006, section 126C.17, subdivision 9, is amended to read:
8.1 		Subd. 9.Referendum revenue. (a) The revenue authorized by section 126C.10, 
8.2 	subdivision 1, may be increased in the amount approved by the voters of the district at a 
8.3 	referendum called for the purpose. The referendum may be called by the board or shall be 
8.4 	called by the board upon written petition of qualified voters of the district. The referendum 
8.5 	must be conducted one or two calendar years before the increased levy authority, if 
8.6 	approved, first becomes payable. Only one election to approve an increase may be held 
8.7 	in a calendar year. Unless the referendum is conducted by mail under paragraph (g), the 
8.8 	referendum must be held on the first Tuesday after the first Monday in November. The 
8.9 	ballot must state the maximum amount of the increased revenue per resident marginal cost 
8.10 	pupil unit. The ballot may state a schedule, determined by the board, of increased revenue 
8.11 	per resident marginal cost pupil unit that differs from year to year over the number of 
8.12 	years for which the increased revenue is authorized or may state that the amount shall 
8.13 	increase annually by the rate of inflation. For this purpose, the rate of inflation shall be the 
8.14 	annual inflationary increase calculated under subdivision 2, paragraph (b). The ballot may 
8.15 	state that existing referendum levy authority is expiring. In this case, the ballot may also 
8.16 	compare the proposed levy authority to the existing expiring levy authority, and express 
8.17 	the proposed increase as the amount, if any, over the expiring referendum levy authority. 
8.18 	The ballot must designate the specific number of years, not to exceed ten, for which the 
8.19 	referendum authorization applies. The ballot, including a ballot on the question to revoke 
8.20 	or reduce the increased revenue amount under paragraph (c), must abbreviate the term 
8.21 	"per resident marginal cost pupil unit" as "per pupil." The notice required under section 
8.22 	275.60 may be modified to read, in cases of renewing existing levies:
8.23 	"BY VOTING "YES" ON THIS BALLOT QUESTION, YOU MAY BE VOTING 
8.24 	FOR A PROPERTY TAX INCREASE ARE RENEWING AN EXISTING 
8.25 	PROPERTY TAX REFERENDUM. YOU ARE NOT CHANGING YOUR 
8.26 	OPERATING REFERENDUM FROM ITS LEVEL IN THE PREVIOUS YEAR."
8.27 	The ballot may contain a textual portion with the information required in this 
8.28 	subdivision and a question stating substantially the following:
8.29 	"Shall the increase in the revenue proposed by (petition to) the board of ........., 
8.30 	School District No. .., be approved?"
8.31 	If approved, an amount equal to the approved revenue per resident marginal cost 
8.32 	pupil unit times the resident marginal cost pupil units for the school year beginning in 
8.33 	the year after the levy is certified shall be authorized for certification for the number of 
8.34 	years approved, if applicable, or until revoked or reduced by the voters of the district at a 
8.35 	subsequent referendum.
9.1 	(b) The board must prepare and deliver by first class mail at least 15 days but no more 
9.2 	than 30 days before the day of the referendum to each taxpayer a notice of the referendum 
9.3 	and the proposed revenue increase. The board need not mail more than one notice to any 
9.4 	taxpayer. For the purpose of giving mailed notice under this subdivision, owners must be 
9.5 	those shown to be owners on the records of the county auditor or, in any county where 
9.6 	tax statements are mailed by the county treasurer, on the records of the county treasurer. 
9.7 	Every property owner whose name does not appear on the records of the county auditor 
9.8 	or the county treasurer is deemed to have waived this mailed notice unless the owner 
9.9 	has requested in writing that the county auditor or county treasurer, as the case may be, 
9.10 	include the name on the records for this purpose. The notice must project the anticipated 
9.11 	amount of tax increase in annual dollars for typical residential homesteads, agricultural 
9.12 	homesteads, apartments, and commercial-industrial property within the school district.
9.13 	The notice for a referendum may state that an existing referendum levy is expiring 
9.14 	and project the anticipated amount of increase over the existing referendum levy in 
9.15 	the first year, if any, in annual dollars for typical residential homesteads, agricultural 
9.16 	homesteads, apartments, and commercial-industrial property within the district.
9.17 	The notice must include the following statement: "Passage of this referendum will 
9.18 	result in an increase in your property taxes." However, in cases of renewing existing 
9.19 	levies, the notice may include the following statement: "Passage of this referendum may 
9.20 	result in an increase a change in your property taxes."
9.21 	(c) A referendum on the question of revoking or reducing the increased revenue 
9.22 	amount authorized pursuant to paragraph (a) may be called by the board and shall be called 
9.23 	by the board upon the written petition of qualified voters of the district. A referendum to 
9.24 	revoke or reduce the revenue amount must state the amount per resident marginal cost 
9.25 	pupil unit by which the authority is to be reduced. Revenue authority approved by the 
9.26 	voters of the district pursuant to paragraph (a) must be available to the school district at 
9.27 	least once before it is subject to a referendum on its revocation or reduction for subsequent 
9.28 	years. Only one revocation or reduction referendum may be held to revoke or reduce 
9.29 	referendum revenue for any specific year and for years thereafter.
9.30 	(d) A petition authorized by paragraph (a) or (c) is effective if signed by a number of 
9.31 	qualified voters in excess of 15 percent of the registered voters of the district on the day 
9.32 	the petition is filed with the board. A referendum invoked by petition must be held on the 
9.33 	date specified in paragraph (a).
9.34 	(e) The approval of 50 percent plus one of those voting on the question is required to 
9.35 	pass a referendum authorized by this subdivision.
10.1 	(f) At least 15 days before the day of the referendum, the district must submit a 
10.2 	copy of the notice required under paragraph (b) to the commissioner and to the county 
10.3 	auditor of each county in which the district is located. Within 15 days after the results 
10.4 	of the referendum have been certified by the board, or in the case of a recount, the 
10.5 	certification of the results of the recount by the canvassing board, the district must notify 
10.6 	the commissioner of the results of the referendum.

10.7 	EFFECTIVE DATE. This section is effective for elections conducted on or after 
10.8 	July 1, 2008.

10.9 	Sec. 12. Minnesota Statutes 2006, section 126C.40, subdivision 6, is amended to read:
10.10 		Subd. 6.Lease purchase; installment buys. (a) Upon application to, and approval 
10.11 	by, the commissioner in accordance with the procedures and limits in subdivision 1, 
10.12 	paragraphs (a) and (b), a district, as defined in this subdivision, may:
10.13 	(1) purchase real or personal property under an installment contract or may lease 
10.14 	real or personal property with an option to purchase under a lease purchase agreement, by 
10.15 	which installment contract or lease purchase agreement title is kept by the seller or vendor 
10.16 	or assigned to a third party as security for the purchase price, including interest, if any; and
10.17 	(2) annually levy the amounts necessary to pay the district's obligations under the 
10.18 	installment contract or lease purchase agreement.
10.19 	(b) The obligation created by the installment contract or the lease purchase 
10.20 	agreement must not be included in the calculation of net debt for purposes of section 
10.21 	475.53, and does not constitute debt under other law. An election is not required in 
10.22 	connection with the execution of the installment contract or the lease purchase agreement. 
10.23 	(c) The proceeds of the levy authorized by this subdivision must not be used to 
10.24 	acquire a facility to be primarily used for athletic or school administration purposes.
10.25 	(d) For the purposes of this subdivision, "district" means:
10.26 	(1) a racially isolated school district or a school district with a racially identifiable 
10.27 	school required to have a comprehensivedesegregation or integration plan for the 
10.28 	elimination of segregationunder Minnesota Rules, parts 3535.0100 to 3535.0180, which 
10.29 	is eligible for revenue under section 124D.86, subdivision 3, clause (1), (2), or (3), 
10.30 	and whose plan has been determined by the commissioner to be in compliance with 
10.31 	Department of Education rules relating to equality of educational opportunity and school 
10.32 	desegregation and, for a district eligible for revenue under section 124D.86, subdivision 3, 
10.33 	clause (4) or (5), where the acquisition of property under this subdivision is determined by 
10.34 	the commissioner to contribute to the implementation of the desegregation plan; or 
11.1 	(2) a school district that participates in a joint program for interdistrict desegregation 
11.2 	with a district defined in clause (1) if the facility acquired under this subdivision is to 
11.3 	be primarily used for the joint program and the commissioner determines that the joint 
11.4 	programs are being undertaken to implement the districts' desegregation plan.
11.5 	(e) Notwithstanding subdivision 1, the prohibition against a levy by a district to lease 
11.6 	or rent a district-owned building to itself does not apply to levies otherwise authorized 
11.7 	by this subdivision.
11.8 	(f) For the purposes of this subdivision, any references in subdivision 1 to building 
11.9 	or land shall include personal property.

11.10 	Sec. 13. Minnesota Statutes 2007 Supplement, section 127A.49, subdivision 2, is 
11.11 	amended to read:
11.12 		Subd. 2.Abatements. Whenever by virtue of chapter 278, sections 270C.86, 
11.13 	375.192, or otherwise, the net tax capacity or referendum market value of any district for 
11.14 	any taxable year is changed after the taxes for that year have been spread by the county 
11.15 	auditor and the local tax rate as determined by the county auditor based upon the original 
11.16 	net tax capacity is applied upon the changed net tax capacities, the county auditor shall, 
11.17 	prior to February 1 of each year, certify to the commissioner of education the amount of 
11.18 	any resulting net revenue loss that accrued to the district during the preceding year. Each 
11.19 	year, the commissioner shall pay an abatement adjustment to the district in an amount 
11.20 	calculated according to the provisions of this subdivision. This amount shall be deducted 
11.21 	from the amount of the levy authorized by section 126C.46. The amount of the abatement 
11.22 	adjustment must be the product of:
11.23 	(1) the net revenue loss as certified by the county auditor, times
11.24 	(2) the ratio of:
11.25 	(i) the sum of the amounts of the district's certified levy in the third preceding year 
11.26 	according to the following:
11.27 	(A) section 123B.57, if the district received health and safety aid according to that 
11.28 	section for the second preceding year;
11.29 	(B) section 124D.20, if the district received aid for community education programs 
11.30 	according to that section for the second preceding year;
11.31 	(C) section 124D.135, subdivision 3, if the district received early childhood family 
11.32 	education aid according to section 124D.135 for the second preceding year; 
11.33 	(D) section 126C.17, subdivision 6, if the district received referendum equalization 
11.34 	aid according to that section for the second preceding year; 
12.1 	(E) section 126C.13, if the district received general education aid according to 
12.2 	section 126C.13, subdivision 4, paragraph (b), clause (1), of that section in the second 
12.3 	preceding year;
12.4 	(F)(E) section 126C.10, subdivision 13a, if the district received operating capital aid 
12.5 	according to section 126C.10, subdivision 13b, in the second preceding year;
12.6 	(G)(F) section 126C.10, subdivision 29, if the district received equity aid according 
12.7 	to section 126C.10, subdivision 30, in the second preceding year;
12.8 	(H)(G) section 126C.10, subdivision 32, if the district received transition aid 
12.9 	according to section 126C.10, subdivision 33, in the second preceding year;
12.10 	(I)(H) section 123B.53, subdivision 5, if the district received debt service 
12.11 	equalization aid according to section 123B.53, subdivision 6, in the second preceding year;
12.12 	(J)(I) section 124D.22, subdivision 3, if the district received school-age care aid 
12.13 	according to section 124D.22, subdivision 4, in the second preceding year;
12.14 	(K)(J) section 123B.591, subdivision 3, if the district received deferred maintenance 
12.15 	aid according to section 123B.591, subdivision 4, in the second preceding year; and
12.16 	(L)(K) section 126C.10, subdivision 35, if the district received alternative teacher 
12.17 	compensation equalization aid according to section 126C.10, subdivision 36, paragraph 
12.18 	(a), in the second preceding year; to
12.19 	(ii) the total amount of the district's certified levy in the third preceding December, 
12.20 	plus or minus auditor's adjustments.

12.21 	Sec. 14. Minnesota Statutes 2007 Supplement, section 127A.49, subdivision 3, is 
12.22 	amended to read:
12.23 		Subd. 3.Excess tax increment. (a) If a return of excess tax increment is made to a 
12.24 	district pursuant to sections 469.176, subdivision 2, and 469.177, subdivision 9, or upon 
12.25 	decertification of a tax increment district, the school district's aid and levy limitations 
12.26 	must be adjusted for the fiscal year in which the excess tax increment is paid under the 
12.27 	provisions of this subdivision.
12.28 	(b) An amount must be subtracted from the district's aid for the current fiscal year 
12.29 	equal to the product of:
12.30 	(1) the amount of the payment of excess tax increment to the district, times
12.31 	(2) the ratio of:
12.32 	(i) the sum of the amounts of the district's certified levy for the fiscal year in which 
12.33 	the excess tax increment is paid according to the following:
12.34 	(A) section 123B.57, if the district received health and safety aid according to that 
12.35 	section for the second preceding year;
13.1 	(B) section 124D.20, if the district received aid for community education programs 
13.2 	according to that section for the second preceding year;
13.3 	(C) section 124D.135, subdivision 3, if the district received early childhood family 
13.4 	education aid according to section 124D.135 for the second preceding year; 
13.5 	(D) section 126C.17, subdivision 6, if the district received referendum equalization 
13.6 	aid according to that section for the second preceding year; 
13.7 	(E) section 126C.13, if the district received general education aid according to 
13.8 	section 126C.13, subdivision 4, paragraph (b), clause (1), of that section in the second 
13.9 	preceding year;
13.10 	(F)(E) section 126C.10, subdivision 13a, if the district received operating capital aid 
13.11 	according to section 126C.10, subdivision 13b, in the second preceding year;
13.12 	(G)(F) section 126C.10, subdivision 29, if the district received equity aid according 
13.13 	to section 126C.10, subdivision 30, in the second preceding year;
13.14 	(H)(G) section 126C.10, subdivision 32, if the district received transition aid 
13.15 	according to section 126C.10, subdivision 33, in the second preceding year;
13.16 	(I)(H) section 123B.53, subdivision 5, if the district received debt service 
13.17 	equalization aid according to section 123B.53, subdivision 6, in the second preceding year;
13.18 	(J)(I) section 124D.22, subdivision 3, if the district received school-age care aid 
13.19 	according to section 124D.22, subdivision 4, in the second preceding year;
13.20 	(K)(J) section 123B.591, subdivision 3, if the district received deferred maintenance 
13.21 	aid according to section 123B.591, subdivision 4, in the second preceding year; and
13.22 	(L)(K) section 126C.10, subdivision 35, if the district received alternative teacher 
13.23 	compensation equalization aid according to section 126C.10, subdivision 36, paragraph 
13.24 	(a), in the second preceding year; to
13.25 	(ii) the total amount of the district's certified levy for the fiscal year, plus or minus 
13.26 	auditor's adjustments.
13.27 	(c) An amount must be subtracted from the school district's levy limitation for the 
13.28 	next levy certified equal to the difference between:
13.29 	(1) the amount of the distribution of excess increment; and
13.30 	(2) the amount subtracted from aid pursuant to clause (a).
13.31 	If the aid and levy reductions required by this subdivision cannot be made to the aid 
13.32 	for the fiscal year specified or to the levy specified, the reductions must be made from 
13.33 	aid for subsequent fiscal years, and from subsequent levies. The school district must use 
13.34 	the payment of excess tax increment to replace the aid and levy revenue reduced under 
13.35 	this subdivision.
14.1 	(d) This subdivision applies only to the total amount of excess increments received 
14.2 	by a district for a calendar year that exceeds $25,000.

14.3 	Sec. 15.  REPEALER.
 14.4 	Minnesota Statutes 2006, section 126C.21, subdivision 1, is repealed.

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

14.6 	ARTICLE 2
14.7 	EDUCATION EXCELLENCE

14.8 	Section 1. Minnesota Statutes 2006, section 13.32, is amended by adding a subdivision 
14.9 	to read:
14.10 		Subd. 11.Data sharing; improving instruction.  The following educational data 
14.11 	may be shared between the Department of Education and the Minnesota Office of Higher 
14.12 	Education as authorized by the Code of Federal Regulations, title 34, section 99.31(a)(6), 
14.13 	to analyze instruction in school districts for purposes of improvement:
14.14 	(1) attendance data, including name of school or institution, school district, year or 
14.15 	term of attendance, and term type;
14.16 	(2) student demographic and enrollment data;
14.17 	(3) academic performance and testing data; and 
14.18 	(4) special academic services received by a student.
14.19 	Any analysis of or report on the data must contain only summary data.

14.20 	Sec. 2. Minnesota Statutes 2006, section 120A.03, is amended to read:
14.21 	120A.03 MISSION STATEMENT AND VISION.
14.22 		Subdivision 1.Mission statement. The mission of public education in Minnesota, 
14.23 	a system for lifelong learning, is to ensure individual academic achievement, an 
14.24 	informed citizenry, and a highly productive work force. This system focuses on the 
14.25 	learner, promotes and values diversity, provides participatory decision making, ensures 
14.26 	accountability, models democratic principles, creates and sustains a climate for change, 
14.27 	provides personalized learning environments, encourages learners to reach their maximum 
14.28 	potential, and integrates and coordinates human services for learners. The public schools 
14.29 	of this state shall serve the needs of the students by cooperating with the students' parents 
14.30 	and legal guardians to develop the students' intellectual capabilities and lifework skills 
14.31 	in a safe and positive environment. It is part of the department's mission that within the 
14.32 	department's resources the commissioner shall endeavor to:
15.1 	(1) prevent the waste or unnecessary spending of public money;
15.2 	(2) use innovative fiscal and human resource practices to manage the state's 
15.3 	resources and operate the department as efficiently as possible;
15.4 	(3) coordinate the department's activities wherever appropriate with the activities 
15.5 	of other governmental agencies;
15.6 	(4) use technology where appropriate to increase agency productivity, improve 
15.7 	customer service, increase public access to information about government, and increase 
15.8 	public participation in the business of government;
15.9 	(5) utilize constructive and cooperative labor-management practices to the extent 
15.10 	otherwise required by chapters 43A and 179A;
15.11 	(6) report to the legislature on the performance of agency operations and the 
15.12 	accomplishment of agency goals in the agency's biennial budget according to section 
15.13 	16A.10, subdivision 1; and 
15.14 	(7) recommend to the legislature appropriate changes in law necessary to carry out 
15.15 	the mission and improve the performance of the department.
15.16 		Subd. 2.World-class schools vision statement. To improve the mission of public 
15.17 	education in Minnesota, the legislature should pursue policies and school finance reforms 
15.18 	based on the following goals:
15.19 	(1) in the area of early childhood education, ensure that investment in educational 
15.20 	success starts early; 
15.21 	(2) in the area of educator quality, ensure that great teachers and principals are 
15.22 	recruited, prepared, supported, and retained; 
15.23 	(3) in the area of academic rigor, ensure all roads are rigorous, and all lead to higher 
15.24 	education;
15.25 	(4) in the area of family and community involvement, ensure families and 
15.26 	communities are full partners in education;
15.27 	(5) ensure that all cultures are included and supported, and connections are made 
15.28 	across local and global cultural divides; 
15.29 	(6) in the area of data and research, ensure that educators use data and research to 
15.30 	improve teaching and learning every day; 
15.31 	(7) ensure schools are provided with funding that is predictable and sufficient to 
15.32 	produce world class performance; 
15.33 	(8) ensure schedules and calendars are designed to help all students reach high 
15.34 	standards: 
15.35 	(9) in the area of special education, ensure services for students with disabilities are 
15.36 	proactive, effective, efficient, and adequately funded; and 
16.1 	(10) in the area of health and wellness, encourage parents and other stakeholders to 
16.2 	ensure that students come to school physically and mentally ready to learn.

16.3 	Sec. 3. Minnesota Statutes 2006, section 120A.22, subdivision 5, is amended to read:
16.4 		Subd. 5.Ages and terms. (a) Every child between age seven or enrollment in first 
16.5 	grade and 16 18 years of age must receive instruction unless the child has completed 
16.6 	the requirements for graduation. Every child under the age of seven who is enrolled in 
16.7 	a half-day kindergarten, or a full-day kindergarten program on alternate days, or other 
16.8 	kindergarten programs shall receive instruction. Except as provided in subdivision 6, a 
16.9 	parent may withdraw a child under the age of seven from enrollment at any time.
16.10 	(b) A school district by annual board action may require children subject to this 
16.11 	subdivision to receive instruction in summer school. A district that acts to require children 
16.12 	to receive instruction in summer school shall establish at the time of its action the criteria 
16.13 	for determining which children must receive instruction.

16.14 	EFFECTIVE DATE. This section is effective the day following final enactment 
16.15 	and applies to the 2008-2009 school year and later.

16.16 	Sec. 4. Minnesota Statutes 2006, section 120A.24, subdivision 1, is amended to read:
16.17 		Subdivision 1.Reports to superintendent. The person in charge of providing 
16.18 	instruction to a child between the ages of seven and 16 must submit the following 
16.19 	information to the superintendent of the district in which the child resides:
16.20 	(1) by October 1 of each school year, the name, birth date, and address of each 
16.21 	child receiving instruction;
16.22 	(2) the name of each instructor and evidence of compliance with one of the 
16.23 	requirements specified in section 120A.22, subdivision 10; and
16.24 	(3) an annual instructional calendar; and
16.25 	(4) for each child instructed by a parent who meets only the requirement of section 
16.26 	120A.22, subdivision 10, clause (6), a quarterly report card on the achievement of the 
16.27 	child in each subject area required in section 120A.22, subdivision 9. 

16.28 	Sec. 5. Minnesota Statutes 2006, section 120A.24, subdivision 2, is amended to read:
16.29 		Subd. 2.Availability of documentation. The person in charge of providing 
16.30 	instruction to a child must make available documentation indicating that the subjects 
16.31 	required in section 120A.22, subdivision 9, are being taught. This documentation must 
16.32 	include class schedules, copies of materials used for instruction, and descriptions of 
16.33 	methods used to assess student achievement and for each child instructed by a parent who 
17.1 	meets only the requirement of section 120A.22, subdivision 10, clause (6), a copy of a 
17.2 	quarterly report card on the achievement of the child in each subject area required in 
17.3 	section 120A.22, subdivision 9. 

17.4 	Sec. 6. Minnesota Statutes 2006, section 120B.02, is amended to read:
17.5 	120B.02 EDUCATIONAL EXPECTATIONS FOR MINNESOTA'S 
17.6 	STUDENTS.
17.7 	(a) The legislature is committed to establishing rigorous academic standards for 
17.8 	Minnesota's public school students. To that end, the commissioner shall adopt in rule 
17.9 	statewide academic standards. The commissioner shall not prescribe in rule or otherwise 
17.10 	the delivery system, classroom assessments, or form of instruction that school sites must 
17.11 	use. For purposes of this chapter, a school site is a separate facility, or a separate program 
17.12 	within a facility that a local school board recognizes as a school site for funding purposes.
17.13 	(b) All commissioner actions regarding the rule must be premised on the following:
17.14 	(1) the rule is intended to raise academic expectations for students, teachers, and 
17.15 	schools;
17.16 	(2) any state action regarding the rule must evidence consideration of school district 
17.17 	autonomy; and
17.18 	(3) the Department of Education, with the assistance of school districts, must make 
17.19 	available information about all state initiatives related to the rule to students and parents, 
17.20 	teachers, and the general public in a timely format that is appropriate, comprehensive, and 
17.21 	readily understandable.
17.22 	(c) When fully implemented, the requirements for high school graduation in 
17.23 	Minnesota must require students to satisfactorily complete, as determined by the school 
17.24 	district, the course credit requirements under section 120B.024 and: successfully pass 
17.25 	graduation examinations as required under section 120B.30.
17.26 	(1) for students enrolled in grade 8 before the 2005-2006 school year, to pass the 
17.27 	basic skills test requirements; and
17.28 	(2) for students enrolled in grade 8 in the 2005-2006 school year and later, to pass 
17.29 	the Minnesota Comprehensive Assessments Second Edition (MCA-IIs).
17.30 	(d) The commissioner shall periodically review and report on the state's assessment 
17.31 	process.
17.32 	(e) School districts are not required to adopt specific provisions of the federal 
17.33 	School-to-Work programs.

18.1 	Sec. 7. Minnesota Statutes 2007 Supplement, section 120B.021, subdivision 1, is 
18.2 	amended to read:
18.3 		Subdivision 1.Required academic standards. The following subject areas are 
18.4 	required for statewide accountability:
18.5 	(1) language arts;
18.6 	(2) mathematics;
18.7 	(3) science;
18.8 	(4) social studies, including history, geography, economics, and government and 
18.9 	citizenship;
18.10 	(5) health, nutrition, and physical education, for which locally developed academic 
18.11 	standards apply; and
18.12 	(6) the arts, for which statewide or locally developed academic standards apply, as 
18.13 	determined by the school district. Public elementary and middle schools must offer at least 
18.14 	three and require at least two of the following four arts areas: dance; music; theater; and 
18.15 	visual arts. Public high schools must offer at least three and require at least one of the 
18.16 	following five arts areas: media arts; dance; music; theater; and visual arts.
18.17 	The commissioner must submit proposed standards in science and social studies to 
18.18 	the legislature by February 1, 2004.
18.19 	For purposes of applicable federal law, the academic standards for language arts, 
18.20 	mathematics, and science apply to all public school students, except the very few students 
18.21 	with extreme cognitive or physical impairments for whom an individualized education 
18.22 	plan team has determined that the required academic standards are inappropriate. An 
18.23 	individualized education plan team that makes this determination must establish alternative 
18.24 	standards with appropriate alternate achievement standards based on these academic 
18.25 	standards for students with individualized education plans as described under federal law.
18.26 	A school district, no later than the 2007-2008 school year, must adopt graduation 
18.27 	requirements that meet or exceed state graduation requirements established in law or 
18.28 	rule. A school district that incorporates these state graduation requirements before the 
18.29 	2007-2008 school year must provide students who enter the 9th grade in or before 
18.30 	the 2003-2004 school year the opportunity to earn a diploma based on existing locally 
18.31 	established graduation requirements in effect when the students entered the 9th grade. 
18.32 	District efforts to develop, implement, or improve instruction or curriculum as a result 
18.33 	of the provisions of this section must be consistent with sections 120B.10, 120B.11, 
18.34 	and 120B.20. 
19.1 	The commissioner must include the contributions of Minnesota American Indian 
19.2 	tribes and communities as they relate to the academic standards during the review and 
19.3 	revision of the required academic standards.

19.4 	Sec. 8. Minnesota Statutes 2006, section 120B.023, subdivision 2, is amended to read:
19.5 		Subd. 2.Revisions and reviews required. (a) The commissioner of education must 
19.6 	revise and appropriately embed technology and information literacy standards consistent 
19.7 	with recommendations from school media specialists into the state's academic standards 
19.8 	and graduation requirements and implement a review cycle for state academic standards 
19.9 	and related benchmarks, consistent with this subdivision. During each review cycle, the 
19.10 	commissioner also must examine the alignment of each required academic standard and 
19.11 	related benchmark with the knowledge and skills students need for college readiness and 
19.12 	advanced work in the particular subject area.
19.13 	(b) The commissioner in the 2006-2007 school year must revise and align the state's 
19.14 	academic standards and high school graduation requirements in mathematics to require 
19.15 	that students satisfactorily complete the revised mathematics standards, beginning in the 
19.16 	2010-2011 school year. Under the revised standards:
19.17 	(1) students must satisfactorily complete an algebra I credit by the end of eighth 
19.18 	grade; and
19.19 	(2) students scheduled to graduate in the 2014-2015 school year or later must 
19.20 	satisfactorily complete an algebra II credit or its equivalent.
19.21 	The commissioner also must ensure that the statewide mathematics assessments 
19.22 	administered to students in grades 3 through 8 and 11 beginning in the 2010-2011 school 
19.23 	year are aligned with the state academic standards in mathematics. The commissioner 
19.24 	must ensure that the statewide 11th grade mathematics testassessment administered to 
19.25 	students under clause (2)in grade 11 beginning in the 2013-2014 school year must 
19.26 	includeis aligned with state academic standards in mathematics, including algebra II test 
19.27 	items that are aligned with corresponding state academic standards in mathematics. The 
19.28 	commissioner must implement a review of the academic standards and related benchmarks 
19.29 	in mathematics beginning in the 2015-2016 school year.
19.30 	(c) The commissioner in the 2007-2008 school year must revise and align the state's 
19.31 	academic standards and high school graduation requirements in the arts to require that 
19.32 	students satisfactorily complete the revised arts standards beginning in the 2010-2011 
19.33 	school year. The commissioner must implement a review of the academic standards and 
19.34 	related benchmarks in arts beginning in the 2016-2017 school year.
20.1 	(d) The commissioner in the 2008-2009 school year must revise and align the state's 
20.2 	academic standards and high school graduation requirements in science to require that 
20.3 	students satisfactorily complete the revised science standards, beginning in the 2011-2012 
20.4 	school year. The commissioner also must ensure that the statewide science assessments 
20.5 	administered to students as described under section 120B.30, subdivision 1a, beginning 
20.6 	in the 2011-2012 school year are aligned with the state academic standards in science. 
20.7 	Under the revised standards, students scheduled to graduate in the 2014-2015 school year 
20.8 	or later must satisfactorily complete a chemistry or physics credit. The commissioner 
20.9 	must implement a review of the academic standards and related benchmarks in science 
20.10 	beginning in the 2017-2018 school year.
20.11 	(e) The commissioner in the 2009-2010 school year must revise and align the state's 
20.12 	academic standards and high school graduation requirements in language arts to require 
20.13 	that students satisfactorily complete the revised language arts standards beginning in the 
20.14 	2012-2013 school year. The commissioner also must ensure that the statewide language 
20.15 	arts assessments administered to students in grades 3 through 8 and grade 10 beginning 
20.16 	in the 2012-2013 school year are aligned with the state academic standards in language 
20.17 	arts. The commissioner must implement a review of the academic standards and related 
20.18 	benchmarks in language arts beginning in the 2018-2019 school year.
20.19 	(f) The commissioner in the 2010-2011 school year must revise and align the state's 
20.20 	academic standards and high school graduation requirements in social studies to require 
20.21 	that students satisfactorily complete the revised social studies standards beginning in the 
20.22 	2013-2014 school year. The commissioner must implement a review of the academic 
20.23 	standards and related benchmarks in social studies beginning in the 2019-2020 school year.
20.24 	(g) School districts and charter schools must revise and align local academic 
20.25 	standards and high school graduation requirements in health, physical education, world 
20.26 	languages, and career and technical education to require students to complete the revised 
20.27 	standards beginning in a school year determined by the school district or charter school. 
20.28 	School districts and charter schools must formally establish a periodic review cycle for 
20.29 	the academic standards and related benchmarks in health, physical education, world 
20.30 	languages, and career and technical education.

20.31 	Sec. 9. Minnesota Statutes 2006, section 120B.131, subdivision 2, is amended to read:
20.32 		Subd. 2.Reimbursement for examination fees. The state may reimburse 
20.33 	college-level examination program (CLEP) fees for a Minnesota public or nonpublic high 
20.34 	school student who has successfully completed one or more college-level courses in high 
20.35 	school in the subject matter of each examination in the following subjects: composition 
21.1 	and literature, mathematics and science, social sciences and history, foreign languages, and 
21.2 	business and humanities. The state may reimburse each student for up to six examination 
21.3 	fees. The commissioner shall establish application procedures and a process and schedule 
21.4 	for fee reimbursements. The commissioner must give priority to reimburse the CLEP 
21.5 	examination fees of students of low-income families.

21.6 	Sec. 10. [120B.299] DEFINITIONS.
21.7 		Subdivision 1.Definitions. The definitions in this section apply to this chapter.
21.8 		Subd. 2.Growth. "Growth" compares the difference between a student's 
21.9 	achievement score at two distinct points in time.
21.10 		Subd. 3.Value-added. "Value-added" is the amount of achievement a student 
21.11 	demonstrates above an established baseline.
21.12 		Subd. 4.Growth-based value-added. "Growth-based value-added" is a 
21.13 	value-added system of assessments that measures the difference between an established 
21.14 	baseline of growth and a student's growth over time.
21.15 		Subd. 5.Adequate yearly progress. Adequate yearly progress compares the 
21.16 	average achievement of two different groups of students at two different points in time. 
21.17 		Subd. 6.State growth norm. "State growth norm" is an established statewide 
21.18 	percentile, or standard applicable to all students in a particular grade benchmarked to 
21.19 	an established school year. Beginning in the 2008-2009 school year, the state growth 
21.20 	norm is benchmarked to 2006-2007 school year data until the commissioner next changes 
21.21 	the vertically linked scale score. Each time the commissioner changes the vertically 
21.22 	linked scale score, a recognized Minnesota assessment group composed of assessment 
21.23 	and evaluation directors and staff and researchers, under Minnesota Statutes, section 
21.24 	120B.299, subdivision 6, in collaboration with the Independent Office of Educational 
21.25 	Accountability under section 120B.31, subdivision 3, must recommend a new state 
21.26 	growth norm that the commissioner shall consider with the revised standards. For each 
21.27 	newly established state growth norm, the commissioner also must establish criteria for 
21.28 	identifying schools and school districts that demonstrate accelerated growth in order to 
21.29 	advance educators' professional development and to replicate programs that succeed in 
21.30 	meeting students' diverse learning needs.

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

21.32 	Sec. 11. Minnesota Statutes 2007 Supplement, section 120B.30, is amended to read:
21.33 	120B.30 STATEWIDE TESTING AND REPORTING SYSTEM.
22.1 		Subdivision 1.Statewide testing. (a) The commissioner, with advice from experts 
22.2 	with appropriate technical qualifications and experience and stakeholders, consistent with 
22.3 	subdivision 1a, shall include in the comprehensive assessment system, for each grade 
22.4 	level to be tested, state-constructed tests developed from and aligned with the state's 
22.5 	required academic standards under section 120B.021 and administered annually to all 
22.6 	students in grades 3 through 8 and at the high school level. A state-developed test in a 
22.7 	subject other than writing, developed after the 2002-2003 school year, must include both 
22.8 	machine-scoreable and constructed response questions. The commissioner shall establish 
22.9 	one or more months during which schools shall administer the tests to students each school 
22.10 	year. Schools selected for stand-alone state field testing or other national sampling by the 
22.11 	department must participate as requested. Superintendents or charter school directors may 
22.12 	appeal in writing to the commissioner of education or the commissioner's designee for 
22.13 	exemption from a selected field test if undue hardship is demonstrated. For students 
22.14 	enrolled in grade 8 before the 2005-2006 school year, only Minnesota basic skills tests in 
22.15 	reading, mathematics, and writing shall fulfill students' basic skills testing requirements for 
22.16 	a passing state notation. The passing scores of basic skills tests in reading and mathematics 
22.17 	are the equivalent of 75 percent correct for students entering grade 9 in 1997 and thereafter, 
22.18 	as based on the first uniform test administration of administered in February 1998.
22.19 	(b) For students enrolled in grade 8 in the 2005-2006 school year and later, only the 
22.20 	following options shall fulfill students' state graduation test requirements:
22.21 	(1) for reading and mathematics:
22.22 	(i) obtaining an achievement level equivalent to or greater than proficient as 
22.23 	determined through a standard setting process on the Minnesota comprehensive 
22.24 	assessments in grade 10 for reading and grade 11 for mathematics or achieving a passing 
22.25 	score as determined through a standard setting process on the graduation-required 
22.26 	assessment for diploma in grade 10 for reading and grade 11 for mathematics or 
22.27 	subsequent retests;
22.28 	(ii) achieving a passing score as determined through a standard setting process on the 
22.29 	state-identified language proficiency test in reading and the mathematics test for English 
22.30 	language learners or the graduation-required assessment for diploma equivalent of those 
22.31 	assessments for students designated as English language learners;
22.32 	(iii) achieving an individual passing score on the graduation-required assessment 
22.33 	for diploma as determined by appropriate state guidelines for students with an individual 
22.34 	education plan or 504 plan;
22.35 	(iv) obtaining achievement level equivalent to or greater than proficient as 
22.36 	determined through a standard setting process on the state-identified alternate assessment 
23.1 	or assessments in grade 10 for reading and grade 11 for mathematics for students with 
23.2 	an individual education plan; or
23.3 	(v) achieving an individual passing score on the state-identified alternate assessment 
23.4 	or assessments as determined by appropriate state guidelines for students with an 
23.5 	individual education plan; and
23.6 	(2) for writing:
23.7 	(i) achieving a passing score on the graduation-required assessment for diploma;
23.8 	(ii) achieving a passing score as determined through a standard setting process on 
23.9 	the state-identified language proficiency test in writing for students designated as English 
23.10 	language learners;
23.11 	(iii) achieving an individual passing score on the graduation-required assessment 
23.12 	for diploma as determined by appropriate state guidelines for students with an individual 
23.13 	education plan or 504 plan; or
23.14 	(iv) achieving an individual passing score on the state-identified alternate assessment 
23.15 	or assessments as determined by appropriate state guidelines for students with an 
23.16 	individual education plan.
23.17 	 (c) The 3rd through 8th grade and high school level test results shall be available 
23.18 	to districts for diagnostic purposes affecting student learning and district instruction and 
23.19 	curriculum, and for establishing educational accountability. The commissioner must 
23.20 	disseminate to the public the test results upon receiving those results.
23.21 	 (d) State tests must be constructed and aligned with state academic standards. The
23.22 	commissioner shall determine the testing process and the order of administration shall be 
23.23 	determined by the commissioner. The statewide results shall be aggregated at the site and 
23.24 	district level, consistent with subdivision 1a.
23.25 	 (e) In addition to the testing and reporting requirements under this section, the 
23.26 	commissioner shall include the following components in the statewide public reporting 
23.27 	system:
23.28 	(1) uniform statewide testing of all students in grades 3 through 8 and at the high 
23.29 	school level that provides appropriate, technically sound accommodations, alternate 
23.30 	assessments, or exemptions consistent with applicable federal law, only with parent or 
23.31 	guardian approval, for those very few students for whom the student's individual education 
23.32 	plan team under sections 125A.05 and 125A.06 determines that the general statewide test 
23.33 	is inappropriate for a student, or for a limited English proficiency student under section 
23.34 	124D.59, subdivision 2;
24.1 	(2) educational indicators that can be aggregated and compared across school 
24.2 	districts and across time on a statewide basis, including average daily attendance, high 
24.3 	school graduation rates, and high school drop-out rates by age and grade level;
24.4 	(3) state results on the American College Test; and
24.5 	(4) state results from participation in the National Assessment of Educational 
24.6 	Progress so that the state can benchmark its performance against the nation and other 
24.7 	states, and, where possible, against other countries, and contribute to the national effort 
24.8 	to monitor achievement.
24.9 		Subd. 1a.Statewide and local assessments; results. (a) The commissioner must 
24.10 	develop reading, mathematics, and science assessments aligned with state academic 
24.11 	standards that districts and sites must use to monitor student growth toward achieving 
24.12 	those standards. The commissioner must not develop statewide assessments for academic 
24.13 	standards in social studies, health and physical education, and the arts. The commissioner 
24.14 	must require:
24.15 	(1) annual reading and mathematics assessments in grades 3 through 8 and at the 
24.16 	high school level for the 2005-2006 school year and later; and
24.17 	(2) annual science assessments in one grade in the grades 3 through 5 span, the 
24.18 	grades 6 through 9 8  span, and a life sciences assessment in the grades 10 9 through 12 
24.19 	span for the 2007-2008 through 2010-2011 school year, and an earth and space, life, and 
24.20 	physical sciences assessment in the grades 9 through 12 span for the 2011-2012 school 
24.21 	year and later. Each assessment given in the high school grade span will be administered 
24.22 	at the end of the course for which science standards instruction is completed in each 
24.23 	content area of biology, earth and space, and physical sciences.
24.24 	(b) The commissioner must ensure that all statewide tests administered to elementary 
24.25 	and secondary students measure students' academic knowledge and skills and not students' 
24.26 	values, attitudes, and beliefs.
24.27 	(c) Reporting of assessment results must:
24.28 	(1) provide timely, useful, and understandable information on the performance of 
24.29 	individual students, schools, school districts, and the state;
24.30 	(2) include, by no later than the 2008-2009 school year, a growth-based value-added 
24.31 	component that is in addition to a measure for student achievement growth over time
24.32 	indicator of student achievement under section 120B.35, subdivision 3, paragraph (b); and
24.33 	(3)(i) for students enrolled in grade 8 before the 2005-2006 school year, determine 
24.34 	whether students have met the state's basic skills requirements; and
24.35 	(ii) for students enrolled in grade 8 in the 2005-2006 school year and later, determine 
24.36 	whether students have met the state's academic standards.
25.1 	(d) Consistent with applicable federal law and subdivision 1, paragraph (d), clause 
25.2 	(1), the commissioner must include appropriate, technically sound accommodations or 
25.3 	alternative assessments for the very few students with disabilities for whom statewide 
25.4 	assessments are inappropriate and for students with limited English proficiency.
25.5 	(e) A school, school district, and charter school must administer statewide 
25.6 	assessments under this section, as the assessments become available, to evaluate student 
25.7 	progress in achieving the proficiency in the context of the state's grade level academic 
25.8 	standards. If a state assessment is not available, a school, school district, and charter 
25.9 	school must determine locally if a student has met the required academic standards. A 
25.10 	school, school district, or charter school may use a student's performance on a statewide 
25.11 	assessment as one of multiple criteria to determine grade promotion or retention. A 
25.12 	school, school district, or charter school may use a high school student's performance on a 
25.13 	statewide assessment as a percentage of the student's final grade in a course, or place a 
25.14 	student's assessment score on the student's transcript.
25.15 		Subd. 2.Department of Education assistance. The Department of Education 
25.16 	shall contract for professional and technical services according to competitive bidding 
25.17 	procedures under chapter 16C for purposes of this section.
25.18 		Subd. 3.Reporting. The commissioner shall report test data publicly and to 
25.19 	stakeholders, including the performance achievement levels developed from students' 
25.20 	unweighted test scores in each tested subject and a listing of demographic factors that 
25.21 	strongly correlate with student performance. The commissioner shall also report data that 
25.22 	compares performance results among school sites, school districts, Minnesota and other 
25.23 	states, and Minnesota and other nations. The commissioner shall disseminate to schools 
25.24 	and school districts a more comprehensive report containing testing information that 
25.25 	meets local needs for evaluating instruction and curriculum.
25.26 		Subd. 4.Access to tests. The commissioner must adopt and publish a policy 
25.27 	to provide public and parental access for review of basic skills tests, Minnesota 
25.28 	Comprehensive Assessments, or any other such statewide test and assessment. Upon 
25.29 	receiving a written request, the commissioner must make available to parents or guardians 
25.30 	a copy of their student's actual responses to the test questions to be reviewed by the 
25.31 	parent for their review.

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

26.1 	Sec. 12. Minnesota Statutes 2006, section 120B.31, as amended by Laws 2007, chapter 
26.2 	146, article 2, section 10, is amended to read:
26.3 	120B.31 SYSTEM ACCOUNTABILITY AND STATISTICAL 
26.4 	ADJUSTMENTS.
26.5 		Subdivision 1.Educational accountability and public reporting. Consistent 
26.6 	with the process direction to adopt a results-oriented graduation rule statewide academic 
26.7 	standards under section 120B.02, the department, in consultation with education and other 
26.8 	system stakeholders, must establish maintain a coordinated and comprehensive system of 
26.9 	educational accountability and public reporting that promotes higher greater academic 
26.10 	achievement, preparation for higher academic education, preparation for the world of 
26.11 	work, citizenship as outlined under sections 120B.021, subdivision 1, clause (4); and 
26.12 	120B.024, paragraph (a), clause (4), and the arts. 
26.13 		Subd. 2.Statewide testing. Each school year, all school districts shall give a 
26.14 	uniform statewide test to students at specified grades to provide information on the status, 
26.15 	needs and performance of Minnesota students.
26.16 		Subd. 3.Educational accountability. (a) The Independent Office of Educational 
26.17 	Accountability, as authorized by Laws 1997, First Special Session chapter 4, article 5, 
26.18 	section 28, subdivision 2, is established, and shall be funded through the Board of Regents 
26.19 	of the University of Minnesota. The office shall advise the education committees of 
26.20 	the legislature and the commissioner of education, at least on a biennial basis, on the 
26.21 	degree to which the statewide educational accountability and reporting system includes a 
26.22 	comprehensive assessment framework that measures school accountability for students 
26.23 	achieving the goals described in the state's results-oriented high school graduation 
26.24 	rule. The office shall determine and annually report to the legislature whether and how 
26.25 	effectively: 
26.26 	(1) the statewide system of educational accountability utilizes uses multiple 
26.27 	indicators to provide valid and reliable comparative and contextual data on students, 
26.28 	schools, districts, and the state, and if not, recommend ways to improve the accountability 
26.29 	reporting system;
26.30 	(2) the commissioner makes statistical adjustments when reporting student data over 
26.31 	time, consistent with clause (4);
26.32 	(3) the commissioner uses indicators of student achievement growth a growth-based 
26.33 	value-added indicator of student achievement over time and a value-added assessment 
26.34 	model that estimates the effects of the school and school district on student achievement to 
26.35 	measure school performance, consistent with section 120B.36, subdivision 1 120B.35, 
26.36 	subdivision 3, paragraph (b);
27.1 	(4) (3) the commissioner makes data available on students who do not pass one or 
27.2 	more of the state's required GRAD tests and do not receive a diploma as a consequence, 
27.3 	and categorizes these data according to gender, race, eligibility for free or reduced lunch, 
27.4 	and English language proficiency; and
27.5 	(5) (4) the commissioner fulfills the requirements under section 127A.095, 
27.6 	subdivision 2.
27.7 	(b) When the office reviews the statewide educational accountability and reporting 
27.8 	system, it shall also consider:
27.9 	(1) the objectivity and neutrality of the state's educational accountability system; and
27.10 	(2) the impact of a testing program on school curriculum and student learning.
27.11 		Subd. 4.Statistical adjustments; student performance data. In developing 
27.12 	managing policies and assessment processes to hold schools and districts accountable 
27.13 	for high levels of academic standards under section 120B.021, the commissioner shall 
27.14 	aggregate student data over time to report student performance and growth levels 
27.15 	measured at the school, school district, regional,or and statewide level. When collecting 
27.16 	and reporting the performance data, the commissioner shall: (1) acknowledge the impact 
27.17 	of significant demographic factors such as residential instability, the number of single 
27.18 	parent families, parents' level of education, and parents' income level on school outcomes; 
27.19 	and (2) organize and report the data so that state and local policy makers can understand 
27.20 	the educational implications of changes in districts' demographic profiles over time. Any 
27.21 	report the commissioner disseminates containing summary data on student performance 
27.22 	must integrate student performance and the demographic factors that strongly correlate 
27.23 	with that performance.

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

27.25 	Sec. 13. Minnesota Statutes 2006, section 120B.35, as amended by Laws 2007, chapter 
27.26 	147, article 8, section 38, is amended to read:
27.27 	120B.35 STUDENT ACADEMIC ACHIEVEMENT AND PROGRESS
27.28 	GROWTH.
27.29 		Subdivision 1.Adequate yearly progress of schools and students School and 
27.30 	student indicators of growth and achievement. The commissioner must develop 
27.31 	and implement maintain a system for measuring and reporting academic achievement 
27.32 	and individual student progress growth, consistent with the statewide educational 
27.33 	accountability and reporting system. The system components of the system must measure 
27.34 	the adequate yearly progress of schools and  the growth of individual students: students' 
28.1 	current achievement in schools under subdivision 2; and individual students' educational 
28.2 	progress growth over time under subdivision 3. The system also must include statewide 
28.3 	measures of student academic achievement growth that identify schools with high levels 
28.4 	of achievement growth, and also schools with low levels of achievement growth that need 
28.5 	improvement. When determining a school's effect, the data must include both statewide 
28.6 	measures of student achievement and, to the extent annual tests are administered,
28.7 	indicators of achievement growth that take into account a student's prior achievement. 
28.8 	Indicators of achievement and prior achievement must be based on highly reliable 
28.9 	statewide or districtwide assessments. Indicators that take into account a student's prior 
28.10 	achievement must not be used to disregard a school's low achievement or to exclude 
28.11 	a school from a program to improve low achievement levels. The commissioner by 
28.12 	January 15, 2002, must submit a plan for integrating these components to the chairs of 
28.13 	the legislative committees having policy and budgetary responsibilities for elementary 
28.14 	and secondary education.
28.15 		Subd. 2.Expectations for federally mandated student academic achievement.
 28.16 	(a) Each school year, a school district must determine if the student achievement levels 
28.17 	at each school site meet state and local federally mandated expectations. If student 
28.18 	achievement levels at a school site do not meet state and local federally mandated
28.19 	expectations and the site has not made adequate yearly progress for two consecutive 
28.20 	school years, beginning with the 2001-2002 school year, the district must work with the 
28.21 	school site to adopt a plan to raise student achievement levels to meet state and local
28.22 	federally mandated expectations. The commissioner of education shall establish student 
28.23 	academic achievement levels to comply with this paragraph.
28.24 	(b) School sites identified as not meeting federally mandated expectations must 
28.25 	develop continuous improvement plans in order to meet state and local federally mandated
28.26 	expectations for student academic achievement. The department, at a district's request, 
28.27 	must assist the district and the school site in developing a plan to improve student 
28.28 	achievement. The plan must include parental involvement components.
28.29 	(c) The commissioner must:
28.30 	(1) provide assistance to assist school sites and districts identified as not meeting 
28.31 	federally mandated expectations; and
28.32 	(2) provide technical assistance to schools that integrate student progress measures 
28.33 	under subdivision 3 in the school continuous improvement plan.
28.34 	(d) The commissioner shall establish and maintain a continuous improvement Web 
28.35 	site designed to make data on every school and district available to parents, teachers, 
28.36 	administrators, community members, and the general public.
29.1 		Subd. 3.Student progress assessment growth; other state measures. (a) 
29.2 	The state's educational assessment system component measuring individual students' 
29.3 	educational progress must be growth is based, to the extent annual tests are administered,
29.4 	on indicators of achievement growth that show an individual student's prior achievement. 
29.5 	Indicators of achievement and prior achievement must be are based on highly reliable 
29.6 	statewide or districtwide assessments.
29.7 	(b) The commissioner must identify effective models for measuring individual 
29.8 	student progress that enable a school district or school site to perform gains-based 
29.9 	analysis, including evaluating the effects of the teacher, school, and school district on 
29.10 	student achievement over time. At least one model must be a "value-added" assessment 
29.11 	model that reliably estimates those effects for classroom settings where a single teacher 
29.12 	teaches multiple subjects to the same group of students, for team teaching arrangements, 
29.13 	and for other teaching circumstances. use a growth-based value-added system. The 
29.14 	commissioner must apply the state growth norm to students in grades 4 through 8 
29.15 	beginning in the 2008-2009 school year, consistent with section 120B.299, subdivision 
29.16 	6, initially benchmarking the state growth norm to 2007-2008 school year data. The 
29.17 	model must allow the user to:
29.18 	(1) report student growth at and above the state norm; and
29.19 	(2) for all student categories with a cell size of at least 20, report and compare 
29.20 	aggregated and disaggregated state growth data using the nine student categories identified 
29.21 	under the federal 2001 No Child Left Behind Act and two student gender categories of 
29.22 	male and female, respectively. The model must have the ability to measure the effects 
29.23 	on student growth at the teacher team level, grade teacher teams level, school level, and 
29.24 	school district level.
29.25 	(c)  If a district has an accountability plan that includes gains-based analysis or 
29.26 	"value-added" assessment, the commissioner shall, to the extent practicable, incorporate 
29.27 	those measures in determining whether the district or school site meets expectations. The 
29.28 	department must coordinate with the district in evaluating school sites and continuous 
29.29 	improvement plans, consistent with best practices If a district has an accountability 
29.30 	plan that includes other growth-based value-added analysis, the commissioner may, to 
29.31 	the extent practicable and consistent with this section, incorporate those measures in 
29.32 	determining whether the district or school site shows growth.
29.33 	(d) When reporting student performance under section 120B.36, subdivision 1, the 
29.34 	commissioner annually, beginning July 1, 2011, must report two core measures indicating 
29.35 	the extent to which current high school graduates are being prepared for postsecondary 
29.36 	academic and career opportunities:
30.1 	(1) a preparation measure indicating the number and percentage of high school 
30.2 	graduates in the most recent school year who completed course work important to 
30.3 	preparing them for postsecondary academic and career opportunities, consistent with the 
30.4 	core academic subjects required for admission to Minnesota's public four-year colleges 
30.5 	and universities as determined by the Minnesota Office of Higher Education under chapter 
30.6 	136A; and
30.7 	(2) a rigorous coursework measure indicating the number and percentage of high 
30.8 	school graduates in the most recent school year who successfully completed one or more 
30.9 	college-level advanced placement, international baccalaureate, postsecondary enrollment 
30.10 	options, other rigorous courses of study under section 120B.021, subdivision 1a, or 
30.11 	industry certification courses.
30.12 	When reporting the core measures under clauses (1) and (2), the commissioner must also 
30.13 	analyze and report separate categories of information using the nine student categories 
30.14 	identified under the federal 2001 No Child Left Behind Act and two student gender 
30.15 	categories of male and female, respectively.
30.16 	(d) When reporting student performance under section 120B.36, subdivision 1, the 
30.17 	commissioner annually, beginning July 1, 2011, must include summary data showing 
30.18 	student's average self-reported sense of school safety, engagement in school, and the 
30.19 	quality of students' relationship with teachers, administrators, and other students. The 
30.20 	commissioner must gather these data consistently from students in grade 4 or 5, in one 
30.21 	grade level in grades 6 through 8, and in one grade level in high school, as determined by 
30.22 	the commissioner in consultation with recognized and qualified experts.
30.23 		Subd. 4.Improving schools. Consistent with the requirements of this section, the 
30.24 	commissioner of education must establish a second achievement benchmark to identify 
30.25 	improving schools. The commissioner must recommend to annually report to the public 
30.26 	and  the legislature by February 15, 2002, indicators in addition to the achievement 
30.27 	benchmark for identifying improving schools, including an indicator requiring a school to 
30.28 	demonstrate ongoing successful use of best teaching practices best practices learned from 
30.29 	those schools that demonstrate accelerated growth compared to the state growth norm.
30.30 	The commissioner also must use those learned best practices to provide additional 
30.31 	assistance and intervention support to a district or school site that does not meet either 
30.32 	federally mandated expectations or the state growth norm.
30.33 		Subd. 5.Improving graduation rates for students with emotional or behavioral 
30.34 	disorders. (a) A district must develop strategies in conjunction with parents of students 
30.35 	with emotional or behavioral disorders and the county board responsible for implementing 
30.36 	sections 245.487 to 245.4889 to keep students with emotional or behavioral disorders in 
31.1 	school, when the district has a drop-out rate for students with an emotional or behavioral 
31.2 	disorder in grades 9 through 12 exceeding 25 percent. 
31.3 	(b) A district must develop a plan in conjunction with parents of students with 
31.4 	emotional or behavioral disorders and the local mental health authority to increase the 
31.5 	graduation rates of students with emotional or behavioral disorders. A district with a 
31.6 	drop-out rate for children with an emotional or behavioral disturbance in grades 9 through 
31.7 	12 that is in the top 25 percent of all districts shall submit a plan for review and oversight 
31.8 	to the commissioner.

31.9 	EFFECTIVE DATE. Subdivision 3, paragraph (b), applies to students in the 
31.10 	2009-2010 school year and later. Subdivision 3, paragraph (c), applies to students in the 
31.11 	2010-2011 school year and later. Subdivision 3, paragraph (d), applies to high school 
31.12 	students in the 2009-2010 school year and later, and to students in any grades 4 through 8 
31.13 	in the 2010-2011 school year and later, consistent with the commissioner's grade level 
31.14 	determinations. Subdivision 4 applies in the 2011-2012 school year and later.

31.15 	Sec. 14. Minnesota Statutes 2006, section 120B.36, as amended by Laws 2007, chapter 
31.16 	146, article 2, section 11, is amended to read:
31.17 	120B.36 SCHOOL ACCOUNTABILITY; APPEALS PROCESS.
31.18 		Subdivision 1.School performance report cards. (a) The commissioner shall use 
31.19 	objective criteria based on levels of student performance to report at least student academic 
31.20 	performance under section 120B.35, subdivision 2, a table showing the percentages 
31.21 	of students at and above the state growth norm under section 120B.35, subdivision 3, 
31.22 	paragraph (b), school safety and student engagement under section 120B.35, subdivision 
31.23 	3, paragraph (d), rigorous coursework under section 120B.35, subdivision 3, paragraph 
31.24 	(c), two separate student-to-teacher ratios that clearly indicate the definition of teacher 
31.25 	consistent with sections 122A.06 and 122A.15 for purposes of determining these ratios, 
31.26 	and staff characteristics excluding salaries, with a value-added component added no later 
31.27 	than the 2008-2009 school year student enrollment demographics, district mobility, and 
31.28 	extracurricular activities. The report must indicate a school's adequate yearly progress 
31.29 	status, and must not set any designations applicable to high- and low-performing schools 
31.30 	due solely to adequate yearly progress status.
31.31 	(b) The commissioner shall develop, annually update, and post on the department 
31.32 	Web site school performance report cards. 
31.33 	(c) The commissioner must make available the first performance report cards by 
31.34 	November 2003, and during the beginning of each school year thereafter.
32.1 	(d) A school or district may appeal its adequate yearly progress status in writing to 
32.2 	the commissioner within 30 days of receiving the notice of its status. The commissioner's 
32.3 	decision to uphold or deny an appeal is final.
32.4 	(e) School performance report cards card data are nonpublic data under section 
32.5 	13.02, subdivision 9, until not later than ten days after the appeal procedure described in 
32.6 	paragraph (d) concludes. The department shall annually post school performance report 
32.7 	cards to its public Web site no later than September 1. 
32.8 		Subd. 2.Adequate yearly progress data. All data the department receives, 
32.9 	collects, or creates for purposes of determining to determine adequate yearly progress 
32.10 	designations status under Public Law 107-110, section 1116, set state growth norms, and 
32.11 	determine student growth are nonpublic data under section 13.02, subdivision 9, until not 
32.12 	later than ten days after the appeal procedure described in subdivision 1, paragraph (d), 
32.13 	concludes. Districts must provide parents sufficiently detailed summary data to permit 
32.14 	parents to appeal under Public Law 107-110, section 1116(b)(2). The department shall 
32.15 	annually post federally mandated adequate yearly progress data and state student growth 
32.16 	data to its public Web site no later than September 1. 

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

32.18 	Sec. 15. Minnesota Statutes 2006, section 120B.362, is amended to read:
32.19 	120B.362 GROWTH-BASED VALUE-ADDED ASSESSMENT PROGRAM.
32.20 	(a) The commissioner of education must implement a growth-based value-added 
32.21 	assessment program to assist school districts, public schools, and charter schools in 
32.22 	assessing and reporting individual students' growth in academic achievement under section 
32.23 	120B.30, subdivision 1a. The program must use assessments of individual students' 
32.24 	academic achievement to make longitudinal comparisons of each student's academic 
32.25 	growth over time. School districts, public schools, and charter schools may apply to the 
32.26 	commissioner to participate in the initial trial program using a form and in the manner the 
32.27 	commissioner prescribes. The commissioner must select program participants from urban, 
32.28 	suburban, and rural areas throughout the state.
32.29 	(b) The commissioner may issue a request for proposals to contract with an 
32.30 	organization that provides a value-added assessment model that reliably estimates school 
32.31 	and school district effects on students' academic achievement over time. The model the 
32.32 	commissioner selects must accommodate diverse data and must use each student's test 
32.33 	data across grades. Data on individual teachers generated under the model are personnel 
32.34 	data under section 13.43.
33.1 	(c) The contract under paragraph (b) must be consistent with the definition of "best 
33.2 	value" under section 16C.02, subdivision 4.

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

33.4 	Sec. 16. Minnesota Statutes 2006, section 121A.035, subdivision 2, is amended to read:
33.5 		Subd. 2.School district and charter school policy. A school board and a 
33.6 	charter school must adopt a crisis management policy to address potential violent crisis 
33.7 	situations in the district or charter school. The policy must be developed cooperatively 
33.8 	with administrators, teachers, employees, students, parents, community members, law 
33.9 	enforcement agencies, other emergency management officials, county attorney offices, 
33.10 	social service agencies, emergency medical responders, and any other appropriate 
33.11 	individuals or organizations. The policy must include at least five school lock-down 
33.12 	drills, five school fire drills consistent with section 299F.30, and one tornado drill, and an 
33.13 	expectation that students be present and participate in these drills.  This section does not 
33.14 	apply to a full-time online learning student under section 124D.095. 

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

33.17 	Sec. 17. Minnesota Statutes 2006, section 121A.037, is amended to read:
33.18 	121A.037 SCHOOL SAFETY DRILLS.
33.19 	Private schools and educational institutions not subject to section 121A.035 must 
33.20 	have at least five school lock-down drills, five school fire drills consistent with section 
33.21 	299F.30, and one tornado drill, and an expectation that students be present and participate 
33.22 	in these drills.

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

33.25 	Sec. 18. [121A.37] ENVIRONMENTALLY SENSITIVE CLEANING AND 
33.26 	MAINTENANCE PRODUCTS.
33.27 		Subdivision 1.Definitions. (a) For the purposes of this section, the following 
33.28 	definitions apply.
33.29 	(b) "Environmentally sensitive cleaning and maintenance products" means cleaning 
33.30 	and maintenance products that minimize adverse impacts on human health and the 
33.31 	environment.
34.1 	(c) "School" has the meaning given under section 120A.22, subdivision 4, excluding 
34.2 	home schools.
34.3 		Subd. 2.Use of environmentally sensitive cleaning and maintenance products.
 34.4 	By September 1, 2009, a school may follow the specifications established under 
34.5 	subdivision 4 regarding the purchase and use of environmentally sensitive cleaning and 
34.6 	maintenance products, where economically feasible. A school may deplete existing 
34.7 	cleaning and maintenance product supplies purchased prior to this date. A school shall 
34.8 	annually review the school's cleaning and maintenance product purchasing practices, as 
34.9 	they relate to the specifications established under subdivision 4.
34.10 		Subd. 3.Task force. (a) The commissioner of education shall appoint an 
34.11 	Environmentally Sensitive Product Task Force composed of the following members:
34.12 	(1) the commissioner of education or the commissioner's designee;
34.13 	(2) the commissioner of administration or the commissioner's designee;
34.14 	(3) the commissioner of health or the commissioner's designee;
34.15 	(4) the commissioner of natural resources or the commissioner's designee;
34.16 	(5) the commissioner of the Pollution Control Agency or the commissioner's 
34.17 	designee;
34.18 	(6) the commissioner of labor and industry or the commissioner's designee;
34.19 	(7) one member from the environmentally sensitive cleaning and maintenance 
34.20 	product industry to be appointed by the commissioner;
34.21 	(8) two members from environmental advocacy groups with knowledge of 
34.22 	environmentally sensitive cleaning and maintenance products to be appointed by the 
34.23 	commissioner; 
34.24 	(9) two school superintendents to be appointed by the commissioner; and
34.25 	(10) a school nutrition professional appointed by the commissioner.
34.26 	(b) The appointing authorities under paragraph (a) must complete their appointments 
34.27 	by June 30, 2011. The commissioner of education or the commissioner's designee shall 
34.28 	serve as the chair of the task force and convene the first meeting of the task force. The 
34.29 	commissioner shall provide meeting space and the necessary support staff for the task 
34.30 	force. Members of the task force serve until their appointing authority designates a 
34.31 	successor.
34.32 	(c) Notwithstanding section 15.059, subdivision 5, the task force expires ......., 20...
34.33 		Subd. 4.Environmentally sensitive cleaning and maintenance product 
34.34 	guidelines and specifications. (a) By January 1, 2009, the commissioner of education, in 
34.35 	cooperation with the task force established under subdivision 3, shall establish guidelines 
34.36 	and specifications for the purchase and use of environmentally sensitive cleaning and 
35.1 	maintenance products in schools. In developing the guidelines and specifications, the task 
35.2 	force shall review and evaluate existing standards established by other states regarding 
35.3 	environmentally sensitive cleaning and maintenance products, and research and guidance 
35.4 	issued by the United States Environmental Protection Agency and the Office of the 
35.5 	Federal Environmental Executive.
35.6 	(b) The commissioner of education shall inform schools of the requirements of this 
35.7 	section, distribute the guidelines and specifications developed in paragraph (a) to all 
35.8 	schools, and make information regarding the requirements, guidelines, and specifications 
35.9 	available on the agency's Web site.
35.10 	(c) By January 1, 2010, and annually thereafter, the commissioner, in cooperation 
35.11 	with the task force established in subdivision 3, shall review and issue any revisions to 
35.12 	the guidelines and specifications to reflect new research and guidance available. The 
35.13 	commissioner shall inform all schools of any revisions and post the updated guidelines 
35.14 	and specifications on the agency's Web site.
35.15 	(d) The guidelines and specifications established under this section shall not prohibit 
35.16 	the use of disinfectants, disinfecting cleaners, sanitizers, or any other antimicrobial product 
35.17 	regulated by the federal Insecticide, Fungicide, and Rodenticide Act (United States Code, 
35.18 	title 7, section 136, et seq.), when necessary to protect public health and provided that the 
35.19 	use of these products is in accordance with responsible cleaning procedure requirements.
35.20 		Subd. 5.Rule making exemption. The guidelines and specifications developed 
35.21 	under this section are exempt from the rulemaking provisions of chapter 14. The 
35.22 	guidelines and specifications are subject to section 14.386, except that notwithstanding 
35.23 	section 14.386, paragraph (b), the guidelines and specifications continue in effect until 
35.24 	repealed or superseded by other law or rule.

35.25 	Sec. 19. Minnesota Statutes 2006, section 122A.06, subdivision 4, is amended to read:
35.26 		Subd. 4.Comprehensive, scientifically based reading instruction. (a) 
35.27 	"Comprehensive, scientifically based reading instruction" includes a program or collection 
35.28 	of instructional practices that is based on reliable, valid, replicated  evidence showing 
35.29 	that when these programs or practices are used, students can be expected to achieve, at 
35.30 	a minimum, satisfactory reading progress. The program or collection of practices must 
35.31 	include, at a minimum, instruction in five areas of reading: phonemic awareness, phonics, 
35.32 	fluency, vocabulary development, and text reading comprehension.
35.33 	Comprehensive, scientifically based reading instruction also includes and integrates 
35.34 	instructional strategies for continuously assessing, evaluating, and communicating 
35.35 	the student's reading progress and needs in order to design and implement ongoing 
36.1 	interventions so that students of all ages and proficiency levels can read and comprehend 
36.2 	text and apply higher level thinking skills.
36.3 	(b) "Phonemic awareness" is the ability of students to notice, think about, and 
36.4 	manipulate the individual sounds in spoken syllables and words.
36.5 	(c) "Phonics" is the understanding that there are systematic and predictable 
36.6 	relationships between written letters and spoken words. Phonics instruction is a way 
36.7 	of teaching reading that stresses learning how letters correspond to sounds and how to 
36.8 	apply this knowledge in reading and spelling.
36.9 	(d) "Fluency" is the ability of students to be able to read orally with speed, accuracy, 
36.10 	and proper expression. 
36.11 	(e) "Vocabulary development" is the process of teaching vocabulary both directly 
36.12 	and indirectly, with repetition and multiple exposures to vocabulary items. Learning 
36.13 	in rich contexts, incidental learning, and use of computer technology all enhance the 
36.14 	acquisition of vocabulary.
36.15 	(f) "Reading comprehension" is an active process that requires intentional thinking 
36.16 	during which meaning is constructed through interactions between text and reader. 
36.17 	Comprehension skills are taught explicitly by demonstrating, explaining, modeling, and 
36.18 	implementing specific cognitive strategies to help beginning readers derive meaning by 
36.19 	intentional, problem-solving thinking processes.

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

36.21 	Sec. 20. Minnesota Statutes 2006, section 122A.07, subdivision 2, is amended to read:
36.22 		Subd. 2.Eligibility; board composition. Except for the representatives of higher 
36.23 	education and the public, to be eligible for appointment to the Board of Teaching a person 
36.24 	must be a teacher currently teaching in a Minnesota school and fully licensed for the 
36.25 	position held and have at least five years teaching experience in Minnesota, including the 
36.26 	two years immediately preceding nomination and appointment. Each nominee, other than 
36.27 	a public nominee, must be selected on the basis of professional experience and knowledge 
36.28 	of teacher education, accreditation, and licensure. The board must be composed of:
36.29 	(1) six teachers who are currently teaching in a Minnesota school or who were 
36.30 	teaching at the time of the appointment, at least four of whom must be teaching in a 
36.31 	public school;
36.32 	(2) one higher education representative, who must be a faculty member preparing 
36.33 	teachers;
36.34 	(3) one school administrator; and
37.1 	(4) three members of the public, two of whom must be present or former members 
37.2 	of school boards.

37.3 	Sec. 21. Minnesota Statutes 2006, section 122A.07, subdivision 3, is amended to read:
37.4 		Subd. 3.Vacant position. With the exception of a teacher who retires from 
37.5 	teaching, the position of a member who leaves Minnesota or whose employment status 
37.6 	changes to a category different from that from which appointed is deemed vacant.

37.7 	Sec. 22. Minnesota Statutes 2006, section 122A.09, subdivision 4, is amended to read:
37.8 		Subd. 4.License and rules. (a) The board must adopt rules to license public school 
37.9 	teachers and interns subject to chapter 14.
37.10 	(b) The board must adopt rules requiring a person to successfully complete a skills 
37.11 	examination in reading, writing, and mathematics as a requirement for initial teacher 
37.12 	licensure. Such rules must require college and universities offering a board-approved 
37.13 	teacher preparation program to provide remedial assistance to persons who did not 
37.14 	achieve a qualifying score on the skills examination, including those for whom English is 
37.15 	a second language.
37.16 	(c) The board must adopt rules to approve teacher preparation programs. The board, 
37.17 	upon the request of a postsecondary student preparing for teacher licensure or a licensed 
37.18 	graduate of a teacher preparation program, shall assist in resolving a dispute between the 
37.19 	person and a postsecondary institution providing a teacher preparation program when the 
37.20 	dispute involves an institution's recommendation for licensure affecting the person or the 
37.21 	person's credentials. At the board's discretion, assistance may include the application 
37.22 	of chapter 14.
37.23 	(d) The board must provide the leadership and shall adopt rules for the redesign of 
37.24 	teacher education programs to implement a research based, results-oriented curriculum 
37.25 	that focuses on the skills teachers need in order to be effective. The board shall implement 
37.26 	new systems of teacher preparation program evaluation to assure program effectiveness 
37.27 	based on proficiency of graduates in demonstrating attainment of program outcomes.
37.28 	(e) The board must adopt rules requiring successful completion of an examination 
37.29 	of general pedagogical knowledge and examinations of licensure-specific teaching 
37.30 	skills. The rules shall be effective on the dates determined by the board but not later 
37.31 	than September 1, 2001.
37.32 	(f) The board must adopt rules requiring teacher educators to work directly with 
37.33 	elementary or secondary school teachers in elementary or secondary schools to obtain 
37.34 	periodic exposure to the elementary or secondary teaching environment.
38.1 	(g) The board must grant licenses to interns and to candidates for initial licenses.
38.2 	(h) The board must design and implement an assessment system which requires a 
38.3 	candidate for an initial license and first continuing license to demonstrate the abilities 
38.4 	necessary to perform selected, representative teaching tasks at appropriate levels.
38.5 	(i) The board must receive recommendations from local committees as established 
38.6 	by the board for the renewal of teaching licenses.
38.7 	(j) The board must grant life licenses to those who qualify according to requirements 
38.8 	established by the board, and suspend or revoke licenses pursuant to sections 122A.20 and 
38.9 	214.10. The board must not establish any expiration date for application for life licenses. 
38.10 	(k) The board must adopt rules that require all licensed teachers who are renewing 
38.11 	their continuing license to include in their renewal requirements further preparation in 
38.12 	the areas of using positive behavior interventions and in accommodating, modifying, and 
38.13 	adapting curricula, materials, and strategies to appropriately meet the needs of individual 
38.14 	students and ensure adequate progress toward the state's graduation rule.
38.15 	(l) In adopting rules to license public school teachers who provide health-related 
38.16 	services for disabled children, the board shall adopt rules consistent with license or 
38.17 	registration requirements of the commissioner of health and the health-related boards who 
38.18 	license personnel who perform similar services outside of the school.
38.19 	(m) The board must adopt rules that require all licensed teachers who are renewing 
38.20 	their continuing license to include in their renewal requirements further reading 
38.21 	preparation, consistent with section 122A.06, subdivision 4. The rules do not take effect 
38.22 	until they are approved by law. Teachers who do not provide direct instruction including, at 
38.23 	least, counselors, school psychologists, school nurses, school social workers, audiovisual 
38.24 	directors and coordinators, and recreation personnel are exempt from this section. 
38.25 	(n) The board must adopt rules that require all licensed teachers who are renewing 
38.26 	their continuing license to include in their renewal requirements further preparation 
38.27 	in understanding the key warning signs of early-onset mental illness in children and 
38.28 	adolescents.
38.29 	(o) When reviewing and revising rules, the board must align the requirements for 
38.30 	teacher preparation programs to reflect the expectation that all students can successfully 
38.31 	complete rigorous academic coursework.

38.32 	Sec. 23. Minnesota Statutes 2006, section 122A.18, subdivision 2, is amended to read:
38.33 		Subd. 2.Teacher and support personnel qualifications. (a) The Board of 
38.34 	Teaching must issue licenses under its jurisdiction to persons the board finds to be 
38.35 	qualified and competent for their respective positions.
39.1 	(b) The board must require a person to successfully complete an examination of 
39.2 	skills in reading, writing, and mathematics before being granted an initial teaching license 
39.3 	to provide direct instruction to pupils in prekindergarten, elementary, secondary, or special 
39.4 	education programs. In addition, the board must require a person to successfully complete 
39.5 	a Minnesota reading instruction competence assessment consistent with subdivision 2c 
39.6 	before being granted an initial teaching license to provide direct instruction to pupils in 
39.7 	prekindergarten or elementary programs. The board must require colleges and universities 
39.8 	offering a board approved teacher preparation program to provide remedial assistance 
39.9 	that includes a formal diagnostic component to persons enrolled in their institution 
39.10 	who did not achieve a qualifying score on the skills examination or Minnesota reading 
39.11 	instruction competence assessment, including those for whom English is a second 
39.12 	language. The colleges and universities must provide assistance in the specific academic 
39.13 	areas of deficiency in which the person did not achieve a qualifying score. School 
39.14 	districts must provide similar, appropriate, and timely remedial assistance that includes a 
39.15 	formal diagnostic component and mentoring to those persons employed by the district 
39.16 	who completed their teacher education program outside the state of Minnesota, received 
39.17 	a one-year license to teach in Minnesota and did not achieve a qualifying score on the 
39.18 	skills examination, including those persons for whom English is a second language. The 
39.19 	Board of Teaching shall report annually to the education committees of the legislature 
39.20 	on the total number of teacher candidates during the most recent school year taking the 
39.21 	skills examination, the number who achieve a qualifying score on the examination, the 
39.22 	number who do not achieve a qualifying score on the examination, the distribution of all 
39.23 	candidates' scores, the number of candidates who have taken the examination at least once 
39.24 	before, and the number of candidates who have taken the examination at least once before 
39.25 	and achieve a qualifying score.
39.26 	(c) A person who has completed an approved teacher preparation program and 
39.27 	obtained a one-year license to teach, but has not successfully completed the skills 
39.28 	examination, may renew the one-year license for two additional one-year periods. Each 
39.29 	renewal of the one-year license is contingent upon the licensee:
39.30 	(1) providing evidence of participating in an approved remedial assistance program 
39.31 	provided by a school district or postsecondary institution that includes a formal diagnostic 
39.32 	component in the specific areas in which the licensee did not obtain qualifying scores; and
39.33 	(2) attempting to successfully complete the skills examination during the period 
39.34 	of each one-year license.
39.35 	(d) The Board of Teaching must grant continuing licenses only to those persons who 
39.36 	have met board criteria for granting a continuing license, which includes successfully 
40.1 	completing the skills examination in reading, writing, and mathematics and, where 
40.2 	applicable, the reading instruction competence assessment.
40.3 	(e) All colleges and universities approved by the board of teaching to prepare 
40.4 	persons for teacher licensure must include in their teacher preparation programs a common 
40.5 	core of teaching knowledge and skills to be acquired by all persons recommended 
40.6 	for teacher licensure. This common core shall meet the standards developed by the 
40.7 	interstate new teacher assessment and support consortium in its 1992 "model standards for 
40.8 	beginning teacher licensing and development." Amendments to standards adopted under 
40.9 	this paragraph are covered by chapter 14. The board of teaching shall report annually to 
40.10 	the education committees of the legislature on the performance of teacher candidates 
40.11 	on common core assessments of knowledge and skills under this paragraph during the 
40.12 	most recent school year.

40.13 	EFFECTIVE DATE. Subdivision 2, paragraph (b), is effective July 1, 2010, and 
40.14 	subdivision 2, paragraph (d), is effective July 1, 2013.

40.15 	Sec. 24. Minnesota Statutes 2006, section 122A.18, subdivision 2a, is amended to read:
40.16 		Subd. 2a.Reading strategies. (a) All colleges and universities approved by the 
40.17 	Board of Teaching to prepare persons for classroom teacher licensure must include in 
40.18 	their teacher preparation programs research-based best practices in reading, consistent 
40.19 	with section 122A.06, subdivision 4, that enable the licensure candidate to know how to 
40.20 	teach reading in the candidate's content areas and prepare the licensure candidate, where 
40.21 	applicable, for the Minnesota reading instruction competence assessment.
40.22 	(b) Board-approved teacher preparation programs for teachers of elementary 
40.23 	education must require instruction in the application of comprehensive, scientifically 
40.24 	based, and balanced reading instruction programs that:
40.25 	(1) teach students to read using foundational knowledge, practices, and strategies 
40.26 	consistent with section 122A.06, subdivision 4, so that all students will achieve continuous 
40.27 	progress in reading; and
40.28 	(2) teach specialized instruction in reading strategies, interventions, and remediations 
40.29 	that enable students of all ages and proficiency levels to become proficient readers.

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

40.31 	Sec. 25. Minnesota Statutes 2006, section 122A.18, is amended by adding a 
40.32 	subdivision to read:
41.1 		Subd. 2c.Minnesota reading instruction competence assessment. The Minnesota 
41.2 	reading instruction competence assessment must measure the knowledge, skill, and 
41.3 	ability of prekindergarten and elementary instructors in comprehensive, scientifically 
41.4 	based reading instruction as defined in section 122A.06. The assessment must have 
41.5 	been previously administered in another state for over five years and be composed 
41.6 	of multiple choice and constructed response questions designed to measure reading 
41.7 	instruction knowledge and skills. Test content areas must assess foundations of reading 
41.8 	development, development of reading comprehension, reading assessment and instruction, 
41.9 	and integration of knowledge and understanding. 

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

41.11 	Sec. 26. Minnesota Statutes 2006, section 122A.60, is amended to read:
41.12 	122A.60 STAFF DEVELOPMENT PROGRAM.
41.13 		Subdivision 1.Staff development committee. A school board must use the revenue 
41.14 	authorized in section 122A.61 for in-service education for programs under section 
41.15 	120B.22, subdivision 2, or for staff development and teacher training plans under this 
41.16 	section. The board must establish an advisory staff development committee to develop the 
41.17 	plan, assist site professional development teams in developing a site plan consistent with 
41.18 	the goals of the plan, and evaluate staff development efforts at the site level. A majority 
41.19 	of the advisory committee and the site professional development team must be teachers 
41.20 	representing various grade levels, subject areas, and special education. The advisory 
41.21 	committee must also include nonteaching staff, parents, and administrators.
41.22 		Subd. 1a.Effective staff development activities. (a) Staff development activities 
41.23 	must be aligned with the district and school site staff development plans, based on student 
41.24 	achievement data, focused on student learning goals and used in the classroom setting. 
41.25 	Activities must:
41.26 	(1) focus on the school classroom and research-basedscientifically-based research 
41.27 	strategies that improve student learning;
41.28 	(2) provide opportunities for teachers to practice and improve their instructional 
41.29 	skills over time and receive instructional-based observations using objective 
41.30 	standards-based assessments to assist in the professional growth process;
41.31 	(3) provide regular opportunities for teachers to use student data as part of their 
41.32 	daily work to increase student achievement;
41.33 	(4) enhance teacher content knowledge and instructional skills;
41.34 	(5) align with state and local academic standards;
42.1 	(6) provide job embedded or integrated professional development opportunities 
42.2 	during teacher contract day to build professional relationships, foster collaboration among 
42.3 	principals and staff who provide instruction to identify instructional strategies to meet 
42.4 	student learning goals, plan for instruction, practice new teaching strategies, review 
42.5 	the results of implementing strategies, and provide opportunities for teacher-to-teacher 
42.6 	coaching and mentoring; and
42.7 	(7) align with the plan of the district or site for an alternative teacher professional 
42.8 	pay system those participating in an alternative professional pay system under section 
42.9 	122A.414.
42.10 	Staff development activities may also include curriculum development and curriculum 
42.11 	training programs, and activities that provide teachers and other members of site-based 
42.12 	teams training to enhance team performance. The school district also may implement other 
42.13 	staff development activities required by law and activities associated with professional 
42.14 	teacher compensation models.
42.15 	(b) Release time provided for teachers to supervise students on field trips and school 
42.16 	activities, or independent tasks not associated with enhancing the teacher's knowledge 
42.17 	and instructional skills, such as preparing report cards, calculating grades, or organizing 
42.18 	classroom materials, may not be counted as staff development time that is financed with 
42.19 	staff development reserved revenue under section 122A.61.
42.20 		Subd. 2.Contents of the plan. The plan must be based on student achievement and 
42.21 	include student learning goals, the staff development outcomes under subdivision 3, the 
42.22 	means to achieve the outcomes, and procedures for evaluating progress at each school 
42.23 	site toward meeting education outcomes.
42.24 		Subd. 3.Staff development outcomes. The advisory staff development committee 
42.25 	must adopt a staff development plan for increasing teacher effectiveness and improving 
42.26 	student achievement. The plan must be consistent with education outcomes that the 
42.27 	school board determines. The plan must include ongoing staff development activities that 
42.28 	contribute toward continuous improvement in achievement of the following goals:
42.29 	(1) improve student achievement of state and local education standards in all areas 
42.30 	of the curriculum by using best practices methods and scientifically-based research;
42.31 	(2) effectively meet the needs of a diverse student population, including at-risk 
42.32 	children, English-language learners, children with disabilities, and gifted children, within 
42.33 	the regular classroom and other settings;
42.34 	(3) provide an inclusive curriculum for a racially, ethnically, and culturally diverse 
42.35 	student population that is consistent with the state education diversity rule and the district's 
42.36 	education diversity plan;
43.1 	(4) improve staff collaboration and develop mentoring and peer coaching programs 
43.2 	for teachers new to the school or district in their first five years of teaching;
43.3 	(5) effectively teach and model violence prevention policy and curriculum that 
43.4 	address early intervention alternatives, issues of harassment, and teach nonviolent 
43.5 	alternatives for conflict resolution; and
43.6 	(6) provide teachers and other members of site-based management teams with 
43.7 	appropriate management and financial management skills.
43.8 		Subd. 4.Staff development report. (a) By October 151 of each year, the district 
43.9 	and site staff development committees shall write and submit a report of staff development 
43.10 	activities and expenditures for the previous year, in the form and manner determined by 
43.11 	the commissioner. The report, signed by the district superintendent and staff development 
43.12 	chair, must include assessment and evaluation data indicating progress toward district and 
43.13 	site staff development goals based on teaching and learning outcomes, including the 
43.14 	percentage of teachers and other staff involved in instruction who participate in effective 
43.15 	staff development activities under subdivision 3.
43.16 	(b) The report must break down expenditures for:
43.17 	(1) curriculum development and curriculum training programs; and
43.18 	(2) staff development training models, workshops, and conferences, and the cost of 
43.19 	releasing teachers or providing substitute teachers for staff development purposes.
43.20 	The report also must indicate whether the expenditures were incurred at the district 
43.21 	level or the school site level, and whether the school site expenditures were made possible 
43.22 	by grants to school sites that demonstrate exemplary use of allocated staff development 
43.23 	revenue. These expenditures must be reported using the uniform financial and accounting 
43.24 	and reporting standards.
43.25 	(c) The commissioner shall report the staff development progress and expenditure 
43.26 	data to the house of representatives and senate committees having jurisdiction over 
43.27 	education by February 15 each year.

43.28 	Sec. 27. Minnesota Statutes 2006, section 122A.61, subdivision 1, is amended to read:
43.29 		Subdivision 1.Staff development revenue. A district is required to reserve 
43.30 	an amount equal to at least two percent of the basic revenue under section 126C.10, 
43.31 	subdivision 2, for in-service education for programs under section 120B.22, subdivision 2, 
43.32 	forwith the primary purpose of creating and implementing district and school site staff 
43.33 	development plans, including. Funds may also be used to support plans for challenging 
43.34 	instructional activities and experiences under section 122A.60, and for curriculum 
43.35 	development and programs, other in-service education, teachers' workshops, teacher 
44.1 	conferences, the cost of substitute teachers staff development purposes, preservice and 
44.2 	in-service education for special education professionals and paraprofessionals, and other 
44.3 	related costs for staff development efforts. A district may annually waive the requirement 
44.4 	to reserve their basic revenue under this section if a majority vote of the licensed teachers 
44.5 	in the district and a majority vote of the school board agree to a resolution to waive the 
44.6 	requirement. A district in statutory operating debt is exempt from reserving basic revenue 
44.7 	according to this section. Districts may expend an additional amount of unreserved 
44.8 	revenue for staff development based on their needs. With the exception of amounts 
44.9 	reserved for staff development from revenues allocated directly to school sites, the board 
44.10 	must initially allocate 50 percent of the reserved revenue to each school site in the district 
44.11 	on a per teacher basis, which must be retained by the school site until used. The board may 
44.12 	retain 25 percent to be used for district wide staff development efforts. The remaining 
44.13 	25 percent of the revenue must be used to make grants to school sites for best practices 
44.14 	methods. A grant may be used for any purpose authorized under section 120B.22, 
44.15 	subdivision 2, 122A.60, or for the costs of curriculum development and programs, other 
44.16 	in-service education, teachers' workshops, teacher conferences, substitute teachers for 
44.17 	staff development purposes, and other staff development efforts, and determined by 
44.18 	the site professional development team. The site professional development team must 
44.19 	demonstrate to the school board the extent to which staff at the site have met the outcomes 
44.20 	of the program. The board may withhold a portion of initial allocation of revenue if the 
44.21 	staff development outcomes are not being met. 

44.22 	Sec. 28. Minnesota Statutes 2006, section 123B.88, subdivision 3, is amended to read:
44.23 		Subd. 3.Transportation services contracts; requirements. (a) The board may 
44.24 	contract for the furnishing of authorized transportation under section 123B.52, and may 
44.25 	purchase gasoline and furnish same to a contract carrier for use in the performance of a 
44.26 	contract with the school district for transportation of school children to and from school. 
44.27 	(b) An initiated transportation service contract shall include by contract language, 
44.28 	addendum, or supplementary information terms addressing:
44.29 	(1) a summary of school bus driver training requirements, including the minimum 
44.30 	number of preservice training hours and the minimum number of inservice training hours; 
44.31 	(2) a driver recruitment and retention plan, including: 
44.32 	(i) an explanation of the actions the contractor has taken or will take to recruit 
44.33 	qualified drivers for the transportation services contract; 
44.34 	(ii) an explanation of the process for screening applicants to be certain that they 
44.35 	meet the school bus driver requirements of federal law, state law, and of the transportation 
45.1 	service contract, including federal and state controlled substance and alcohol testing 
45.2 	requirements; 
45.3 	(iii) an explanation of the training that drivers receive prior to assignment to 
45.4 	transportation service; and 
45.5 	(iv) an explanation of the actions of the employer to retain qualified drivers to meet 
45.6 	requirements of the transportation services contract, including an explanation of wage 
45.7 	rates and employee benefits and policies on compensated absences such as paid vacations, 
45.8 	holidays, and sick leave; 
45.9 	(3) the reporting to the local school district of all school bus accidents; 
45.10 	(4) the reporting to the local school district of all school bus driver reported traffic 
45.11 	convictions, based upon the requirement of commercial drivers to report traffic convictions 
45.12 	to their employer under Federal Motor Carrier Safety Administration, rule 383.31; 
45.13 	(5) the reporting within one week to the local school district the results of any 
45.14 	Minnesota Highway Patrol inspection of school buses being regularly utilized for the 
45.15 	transportation under the transportation contract; 
45.16 	(6) the school bus driver employee turnover ratio as defined as the number of school 
45.17 	bus drivers during the most recent school year, divided by the daily average number of 
45.18 	school bus drivers during the same regular school year within bus garage location or 
45.19 	other reasonable basis. The turnover rate may exclude those drivers whose employment 
45.20 	is terminated or who are otherwise removed from service at the direction of the local 
45.21 	school district; and 
45.22 	(7) the date of hire of the employer's current employees identified by their job 
45.23 	classification, which may include any relevant prior experience. Summer and other regular 
45.24 	school breaks should not be considered interruptions to employment. 
45.25 	(c) Notwithstanding section 123B.52, a school district may award a transportation 
45.26 	contract in the interest of student safety and cost effectiveness. 

45.27 	EFFECTIVE DATE. This section is effective July 1, 2008.

45.28 	Sec. 29. [123B.915] SCHOOL BUS DRIVERS.
45.29 		Subdivision 1.Driver pay. School bus driver employees must be paid for the 
45.30 	actual time worked. If a route pay system or hourly estimation is used, school bus driver 
45.31 	employees must be scheduled and paid for actual time for required inspection of buses. 
45.32 		Subd. 2.Right to refuse.  School bus drivers who document needed bus repairs 
45.33 	shall have the right to refuse to operate the bus immediately for a safety-related repair, 
45.34 	which meets the out-of-service definition of Minnesota Rules, part 7470.0600. In this 
45.35 	situation, the driver shall be provided an alternate bus, if available, and time to inspect it. 
46.1 	The driver shall not be penalized in any way for fees, fines, or consequences incurred by 
46.2 	the employer for delays or failure to provide the transportation service in a timely manner 
46.3 	in this situation. Nothing in this section may diminish the rights, pay, or benefits of drivers 
46.4 	covered by a collective bargaining agreement with an exclusive representative.

46.5 	EFFECTIVE DATE. This section is effective July 1, 2008.

46.6 	Sec. 30. Minnesota Statutes 2006, section 124D.09, subdivision 3, is amended to read:
46.7 		Subd. 3.Definitions. For purposes of this section, the following terms have the 
46.8 	meanings given to them.
46.9 	(a) "Eligible institution" means a Minnesota public postsecondary institution, a 
46.10 	private, nonprofit two-year trade and technical school granting associate degrees, an 
46.11 	opportunities industrialization center accredited by the North Central Association of 
46.12 	Colleges and Schools, or a private, residential, two-year or four-year, liberal arts, 
46.13 	degree-granting college or university located in Minnesota.
46.14 	(b) "Course" means a course or program.
46.15 	(c) "Full time" means no less than 12 semester hours of college credit and no more 
46.16 	than 15 semester hours of college credit per semester.
46.17 	(d) "Secondary pupils" means a high school student requiring four semesters or less 
46.18 	of full-time enrollment to meet requirements necessary for a high school diploma.

46.19 	Sec. 31. Minnesota Statutes 2006, section 124D.09, subdivision 5, is amended to read:
46.20 		Subd. 5.Authorization; notification. Notwithstanding any other law to the 
46.21 	contrary, an 11th or 12th grade pupil enrolled in a school or an American Indian-controlled 
46.22 	tribal contract or grant school eligible for aid under section 124D.83, except a foreign 
46.23 	exchange pupil enrolled in a district under a cultural exchange program, may apply to an 
46.24 	eligible institution, as defined in subdivision 3, to enroll in nonsectarian courses offered by 
46.25 	that postsecondary institution. If an institution accepts a secondary pupil for enrollment 
46.26 	under this section, the institution shall send written notice to the pupil, the pupil's school 
46.27 	or school district, and the commissioner within ten days of acceptance. The notice must 
46.28 	indicate the course and hours of enrollment of that pupil. If the pupil enrolls in a course 
46.29 	for postsecondary credit only, the institution must notify the pupil about payment in the 
46.30 	customary manner used by the institution. 

46.31 	Sec. 32. Minnesota Statutes 2006, section 124D.09, subdivision 7, is amended to read:
46.32 		Subd. 7.Dissemination of information; notification of intent to enroll. By March 
46.33 	1 of each year, a district must provide general information about the program to all pupils 
47.1 	in grades 10 and 11. To assist the district in planning, a pupil shall inform the district by
47.2 	no earlier than  March 30 of each year and no later than May 1 of each year of the pupil's 
47.3 	intent to enroll in postsecondary courses during the following school year. A pupil is not 
47.4 	bound by notifying or not notifying the district by March 30.

47.5 	Sec. 33. Minnesota Statutes 2006, section 124D.09, subdivision 16, is amended to read:
47.6 		Subd. 16.Financial arrangements for courses provided according to 
47.7 	agreements. (a) The agreement between a board and the governing body of a public 
47.8 	postsecondary system or private postsecondary institution shall set forth the payment 
47.9 	amounts and arrangements, if any, from the board to the postsecondary institution. No 
47.10 	payments shall be made by the department according to subdivision 13 or 15. For the 
47.11 	purpose of computing state aids for a district, a pupil enrolled according to subdivision 
47.12 	10 shall be counted in the average daily membership of the district as though the pupil 
47.13 	were enrolled in a secondary course that is not offered in connection with an agreement. 
47.14 	Nothing in this subdivision shall be construed to prohibit a public postsecondary system 
47.15 	or private postsecondary institution from receiving additional state funding that may be 
47.16 	available under any other law not linked to calculation of state per pupil general education 
47.17 	revenue formula under section 126C.10, subdivision 2.
47.18 	(b) If a course is provided under subdivision 10, offered at a secondary school, and 
47.19 	taught by a secondary teacher, the postsecondary system or institution must not require a 
47.20 	payment from the school board that exceeds the cost to the postsecondary institution that 
47.21 	is directly attributable to providing that course.

47.22 	Sec. 34. Minnesota Statutes 2006, section 124D.09, subdivision 24, is amended to read:
47.23 		Subd. 24.Limit; state obligation. The provisions of subdivisions 13, 19, 22, and 
47.24 	23 shall not apply for any postsecondary courses in which a pupil is enrolled in addition 
47.25 	to being enrolled full time in that pupil's district or for any postsecondary course in 
47.26 	which a pupil is enrolled for postsecondary credit. The pupil is enrolled full time if the 
47.27 	pupil attends credit-bearing classes in the high school or high school program for all of 
47.28 	the available hours of instruction.

47.29 	Sec. 35. Minnesota Statutes 2007 Supplement, section 124D.095, subdivision 3, 
47.30 	is amended to read:
47.31 		Subd. 3.Authorization; notice; limitations on enrollment. (a) A student may 
47.32 	apply for full-time enrollment in an approved online learning program under section 
47.33 	124D.03, 124D.08 or 124D.10, or for supplemental online learning. Notwithstanding 
48.1 	sections 124D.03, 124D.08, and 124D.10, procedures for enrolling in supplemental online 
48.2 	learning shall be as provided in this subdivision. A student age 17 or younger must 
48.3 	have the written consent of a parent or guardian to apply. No school district or charter 
48.4 	school may prohibit a student from applying to enroll in online learning. In order that a 
48.5 	student may enroll in online learning, the student and the student's parents must submit an 
48.6 	application to the online learning provider and identify the reason for enrolling in online 
48.7 	learning. The online learning provider that accepts a student under this section must within 
48.8 	ten days notify the student and the enrolling district in writing if the enrolling district is 
48.9 	not the online learning provider. The student and family must notify the online learning 
48.10 	provider of their intent to enroll in online learning within ten days of acceptance, at which 
48.11 	time the student and parent must sign a statement of assurance that they have reviewed the 
48.12 	online course or program and understand the expectations of online learning enrollment. 
48.13 	The online learning provider must notify the enrolling district of the student's enrollment
48.14 	application to enroll  in online learning in writing on a form provided by the department.
48.15 	(b) Supplemental online learning notification to the enrolling district upon student 
48.16 	enrollment in application to  the online learning program provider  will include the 
48.17 	courses or program, credits to be awarded, and the start date of online enrollment, and 
48.18 	confirmation. An online learning provider must make available to the enrolling district the 
48.19 	course syllabus, standard alignment, content outline, assessment requirements, and contact 
48.20 	information for supplemental online courses taken by students in the enrolling district. 
48.21 	The enrolling district must confirm  that the courses will meet the student's graduation plan
48.22 	before the student is enrolled in the online program. A student may enroll in supplemental 
48.23 	online learning courses up to the midpoint of the enrolling district's term. The enrolling 
48.24 	district may waive this requirement for special circumstances and upon acceptance by 
48.25 	the online provider.
48.26 	 (c) An online learning provider must notify the commissioner that it is delivering 
48.27 	online learning and report the number of online learning students it is accepting and the 
48.28 	online learning courses and programs it is delivering.
48.29 	 (d) An online learning provider may limit enrollment if the provider's school board 
48.30 	or board of directors adopts by resolution specific standards for accepting and rejecting 
48.31 	students' applications.
48.32 	 (e) An enrolling district may reduce an online learning student's regular classroom 
48.33 	instructional membership in proportion to the student's membership in online learning 
48.34 	courses.
49.1 	(f) The online provider must report student progress to the enrolling district in a 
49.2 	manner specified by the commissioner. The enrolling district must designate a contact 
49.3 	person to assist in monitoring student progress. 

49.4 	Sec. 36. Minnesota Statutes 2007 Supplement, section 124D.095, subdivision 4, 
49.5 	is amended to read:
49.6 		Subd. 4.Online learning parameters. (a) An online learning student must receive 
49.7 	academic credit for completing the requirements of an online learning course or program. 
49.8 	Secondary credits granted to an online learning student must be counted toward the 
49.9 	graduation and credit requirements of the enrolling district. An online learning provider 
49.10 	must make available to the enrolling district the course syllabus, standard alignment, 
49.11 	content outline, assessment requirements, and contact information for supplemental online 
49.12 	courses taken by students in the enrolling district. The enrolling district must apply the 
49.13 	same graduation requirements to all students, including online learning students, and 
49.14 	must continue to provide nonacademic services to online learning students. If a student 
49.15 	completes an online learning course or program that meets or exceeds a graduation 
49.16 	standard or grade progression requirement at the enrolling district, that standard or 
49.17 	requirement is met. The enrolling district must use the same criteria for accepting online 
49.18 	learning credits or courses as it does for accepting credits or courses for transfer students 
49.19 	under section 124D.03, subdivision 9. The enrolling district may reduce the course 
49.20 	schedule of an online learning student in proportion to the number of online learning 
49.21 	courses the student takes from an online learning provider that is not the enrolling district.
49.22 	(b) An online learning student may:
49.23 	(1) enroll in supplemental online learning courses during a single school year to a 
49.24 	maximum of 50 percent of the student's full schedule of courses per term. A student may 
49.25 	exceed the supplemental online learning registration limit if the enrolling district grants 
49.26 	permission for supplemental online learning enrollment above the limit, or if an agreement 
49.27 	is made between the enrolling district and the online learning provider for instructional 
49.28 	services;
49.29 	(2) complete course work at a grade level that is different from the student's current 
49.30 	grade level; and
49.31 	(3) enroll in additional courses with the online learning provider under a separate 
49.32 	agreement that includes terms for payment of any tuition or course fees.
49.33 	(c) An online learning student has the same access to the computer hardware and 
49.34 	education software available in a school as all other students in the enrolling district. An 
49.35 	online learning provider must assist an online learning student whose family qualifies 
50.1 	for the education tax credit under section 290.0674 to acquire computer hardware and 
50.2 	educational software for online learning purposes.
50.3 	(d) An enrolling district or charter school may offer online learning to its enrolled 
50.4 	students. Such online learning does not generate online learning funds under this section. 
50.5 	An enrolling district or charter school that offers online learning only to its enrolled 
50.6 	students is not subject to the reporting requirements or review criteria under subdivision 7, 
50.7 	unless the enrolling district or charter school is a full-time online provider. A teacher with 
50.8 	a Minnesota license must assemble and deliver instruction to enrolled students receiving 
50.9 	online learning from an enrolling district or charter school. The delivery of instruction 
50.10 	occurs when the student interacts with the computer or the teacher and receives ongoing 
50.11 	assistance and assessment of learning. The instruction may include curriculum developed 
50.12 	by persons other than a teacher with a Minnesota license.
50.13 	(e) AnA full-time online learning provider that is not the enrolling district is subject 
50.14 	to the reporting requirements and review criteria under subdivision 7. A teacher with a 
50.15 	Minnesota license must assemble and deliver instruction to online learning students. The 
50.16 	delivery of instruction occurs when the student interacts with the computer or the teacher 
50.17 	and receives ongoing assistance and assessment of learning. The instruction may include 
50.18 	curriculum developed by persons other than a teacher with a Minnesota license. Unless 
50.19 	the commissioner grants a waiver, a teacher providing online learning instruction must not 
50.20 	instruct more than 40 students in any one online learning course or program.
50.21 	(f) To enroll in more than 50 percent of the student's full schedule of courses per term 
50.22 	in online learning, the student must qualify to exceed the supplemental online learning 
50.23 	registration limit under paragraph (b) or apply for enrollment to an approved full-time 
50.24 	online learning program following appropriate procedures in subdivision 3, paragraph (a). 
50.25 	Full-time online learning students may enroll in classes at a local school per contract for 
50.26 	instructional services between the online learning provider and the school district.

50.27 	Sec. 37. Minnesota Statutes 2007 Supplement, section 124D.095, subdivision 7, 
50.28 	is amended to read:
50.29 		Subd. 7.Department of Education. (a) The department must review and certify 
50.30 	online learning providers. The online learning courses and programs must be rigorous, 
50.31 	aligned with state academic standards, and contribute to grade progression in a single 
50.32 	subject. Online learning providers must demonstrate to the commissioner that online 
50.33 	learning courses have equivalent meet professional standards or of instruction, curriculum, 
50.34 	and assessment requirements as other courses offered to enrolled students as indicated in a 
50.35 	syllabus submitted according to the commissioner's requirements. The online learning 
51.1 	provider must also demonstrate expectations for actual teacher contact time or other 
51.2 	student-to-teacher communication. Once an online learning provider is approved under 
51.3 	this paragraph, all of its online learning course offerings are eligible for payment under 
51.4 	this section unless a course is successfully challenged by an enrolling district or the 
51.5 	department under paragraph (b).
51.6 	(b) An enrolling district may challenge the validity of a course offered by an online 
51.7 	learning provider. The department must review such challenges based on the certification 
51.8 	procedures under paragraph (a). The department may initiate its own review of the validity 
51.9 	of an online learning course offered by an online learning provider.
51.10 	(c) The department may collect a fee not to exceed $250 for certifying online 
51.11 	learning providers or $50 per course for reviewing a challenge by an enrolling district.
51.12 	(d) The department must develop, publish, and maintain a list of approved online 
51.13 	learning providers and online learning courses and programs that it has reviewed and 
51.14 	certified.

51.15 	Sec. 38. Minnesota Statutes 2006, section 124D.095, subdivision 10, is amended to 
51.16 	read:
51.17 		Subd. 10.Online Learning Advisory Council. (a) An Online Learning Advisory 
51.18 	Council is established under section 15.059, except that the term for each council member 
51.19 	shall be three years. The advisory council is composed of 12 members from throughout 
51.20 	the state who have demonstrated experience with or interest in online learning. The 
51.21 	members of the council shall be appointed by the commissioner. The advisory council 
51.22 	shall bring to the attention of the commissioner any matters related to online learning and 
51.23 	provide input to the department in matters related, but not restricted, to:
51.24 	(1) quality assurance;
51.25 	(2) teacher qualifications;
51.26 	(3) program approval;
51.27 	(4) special education;
51.28 	(5) attendance;
51.29 	(6) program design and requirements; and
51.30 	(7) fair and equal access to programs.
51.31 	(b) The Online Learning Advisory Council under this subdivision expires June 
51.32 	30, 2008.

51.33 	Sec. 39. Minnesota Statutes 2006, section 124D.10, subdivision 2a, is amended to read:
52.1 		Subd. 2a.Charter School Advisory Council. (a) A Charter School Advisory 
52.2 	Council is established under section 15.059 except that the term for each council member 
52.3 	shall be three years. The advisory council is composed of seven members from throughout 
52.4 	the state who have demonstrated experience with or interest in charter schools. The 
52.5 	members of the council shall be appointed by the commissioner. The advisory council 
52.6 	shall bring to the attention of the commissioner any matters related to charter schools 
52.7 	that the council deems necessary and shall: 
52.8 	(1) encourage school boards to make full use of charter school opportunities;
52.9 	(2) encourage the creation of innovative schools;
52.10 	(3) provide leadership and support for charter school sponsors to increase the 
52.11 	innovation in and the effectiveness, accountability, and fiscal soundness of charter schools;
52.12 	(4) serve an ombudsman function in facilitating the operations of new and existing 
52.13 	charter schools;
52.14 	(5) promote timely financial management training for newly elected members of 
52.15 	a charter school board of directors and ongoing training for other members of a charter 
52.16 	school board of directors; and
52.17 	(6) facilitate compliance with auditing and other reporting requirements. The 
52.18 	advisory council shall refer all its proposals to the commissioner who shall provide time 
52.19 	for reports from the council.
52.20 	(b) The Charter School Advisory Council under this subdivision expires June 30, 
52.21 	2007 does not expire and the expiration date provided in section 15.059, subdivision 
52.22 	5, does not apply to this section.

52.23 	EFFECTIVE DATE. This section is effective retroactively from June 30, 2007.

52.24 	Sec. 40. Minnesota Statutes 2007 Supplement, section 124D.10, subdivision 4, is 
52.25 	amended to read:
52.26 		Subd. 4.Formation of school. (a) A sponsor may authorize one or more licensed 
52.27 	teachers under section 122A.18, subdivision 1, to operate a charter school subject to 
52.28 	approval by the commissioner. A board must vote on charter school application for 
52.29 	sponsorship no later than 90 days after receiving the application. The school must be 
52.30 	organized and operated as a cooperative under chapter 308A or nonprofit corporation 
52.31 	under chapter 317A and the provisions under the applicable chapter shall apply to the 
52.32 	school except as provided in this section. Notwithstanding sections 465.717 and 465.719, 
52.33 	a school district may create a corporation for the purpose of creating a charter school.
52.34 	(b) Before the operators may form and operate a school, the sponsor must file an 
52.35 	affidavit with the commissioner stating its intent to authorize a charter school. The 
53.1 	affidavit must demonstrate the sponsor's abilities, capacities, and expertise in fulfilling the 
53.2 	responsibilities of a sponsor and state the terms and conditions under which the sponsor 
53.3 	would authorize a charter school and how the sponsor intends to oversee the fiscal and 
53.4 	student performance of the charter school and to comply with the terms of the written 
53.5 	contract between the sponsor and the charter school board of directors under subdivision 
53.6 	6 in the form and manner prescribed by the commissioner. The sponsor must submit 
53.7 	an affidavit to the commissioner for each charter school it proposes to authorize. The 
53.8 	commissioner must approve or disapprove the sponsor's proposed authorization within 
53.9 	90 days of receipt of the affidavit. Failure to obtain commissioner approval precludes a 
53.10 	sponsor from authorizing the charter school that was the subject of the affidavit.
53.11 	(c) The operators authorized to organize and operate a school, before entering into a 
53.12 	contract or other agreement for professional or other services, goods, or facilities, must 
53.13 	incorporate as a cooperative under chapter 308A or as a nonprofit corporation under 
53.14 	chapter 317A and must establish a board of directors composed of at least five nonrelated
53.15 	members until a timely election for members of the charter school board of directors is 
53.16 	held according to the school's articles and bylaws. A charter school board of directors 
53.17 	must be composed of at least five members. Any staff members who are employed at the 
53.18 	school, including teachers providing instruction under a contract with a cooperative, and 
53.19 	all parents of children enrolled in the school mayare eligible to   participate in the election 
53.20 	for members of the school's board of directors. Licensed teachers employed at the school, 
53.21 	including teachers providing instruction under a contract with a cooperative, must be a 
53.22 	majority of the members of the board of directors before the school completes its third 
53.23 	year of operation, unless the commissioner waives the requirement for a majority of 
53.24 	licensed teachers on the board. Board of director meetings must comply with chapter 13D.
53.25 	(d) The granting or renewal of a charter by a sponsoring entity must not be 
53.26 	conditioned upon the bargaining unit status of the employees of the school.
53.27 	(e) The granting or renewal of a charter school by a sponsor must not be contingent 
53.28 	on the charter school being required to contract, lease, or purchase services from the 
53.29 	sponsor. A sponsor is prohibited from entering into a contract to provide management and 
53.30 	financial services for a school that it is authorized to sponsor.
53.31 	(e)(f)  A sponsor may authorize the operators of a charter school to expand the 
53.32 	operation of the charter school to additional sites or to add additional grades at the school 
53.33 	beyond those described in the sponsor's application as approved by the commissioner only 
53.34 	after submitting a supplemental application to the commissioner in a form and manner 
53.35 	prescribed by the commissioner. The supplemental application must provide evidence that:
53.36 	(1) the expansion of the charter school is supported by need and projected enrollment;
54.1 	(2) the charter school is fiscally sound;
54.2 	(3) the sponsor supports the expansion; and
54.3 	(4) the building of the additional site meets all health and safety requirements to 
54.4 	be eligible for lease aid.
54.5 	(f)(g)  The commissioner annually must provide timely financial management 
54.6 	training to newly elected members of a charter school board of directors and ongoing 
54.7 	training to other members of a charter school board of directors. Training must address 
54.8 	ways to:
54.9 	(1) proactively assess opportunities for a charter school to maximize all available 
54.10 	revenue sources;
54.11 	(2) establish and maintain complete, auditable records for the charter school;
54.12 	(3) establish proper filing techniques;
54.13 	(4) document formal actions of the charter school, including meetings of the charter 
54.14 	school board of directors;
54.15 	(5) properly manage and retain charter school and student records;
54.16 	(6) comply with state and federal payroll record-keeping requirements; and
54.17 	(7) address other similar factors that facilitate establishing and maintaining complete 
54.18 	records on the charter school's operations.

54.19 	Sec. 41. Minnesota Statutes 2006, section 124D.10, subdivision 4a, is amended to read:
54.20 		Subd. 4a.Conflict of interest. (a) A member of a charter school board of directors 
54.21 	is prohibited from serving as a member of the board of directors or as an employee or 
54.22 	agent of or a contractor with a for-profit entity with whom the charter school contracts, 
54.23 	directly or indirectly, for professional services, goods, or facilities. A violation of this 
54.24 	prohibition renders a contract voidable at the option of the commissioner. The charter 
54.25 	school's state aid may be reduced by the commissioner under section 127A.42 if the 
54.26 	charter school board fails to correct violations under this subdivision in a timely manner. 
54.27 	A member of a charter school board of directors who violates this prohibition shall be 
54.28 	individually liable to the charter school for any damage caused by the violation.
54.29 	(b) An individual may serve as a member of the board of directors if no conflict of 
54.30 	interest under paragraph (a) exists.
54.31 	(c) A member of a charter school board of directors that serves as a member of the 
54.32 	board of directors or as an employee or agent of or a contractor with a nonprofit entity 
54.33 	with whom the charter school contracts, directly or indirectly, for professional services, 
54.34 	goods, or facilities, must disclose all potential conflicts to the commissioner. A violation 
54.35 	of this requirement renders a contract voidable at the option of the commissioner. The 
55.1 	charter school's aid may be reduced by the commissioner under section 127A.42 if the 
55.2 	charter school fails to correct violations under this subdivision in a timely manner.
55.3 	(d) The conflict of interest provisions under this subdivision do not apply to 
55.4 	compensation paid to a teacher employed by the charter school who also serves as a 
55.5 	member of the board of directors.
55.6 	(e) The conflict of interest provisions under this subdivision do not apply to a teacher 
55.7 	who provides services to a charter school through a cooperative formed under chapter 
55.8 	308A when the teacher also serves on the charter school board of directors.

55.9 	Sec. 42. Minnesota Statutes 2006, section 124D.10, subdivision 6, is amended to read:
55.10 		Subd. 6.Contract. The sponsor's authorization for a charter school must be in the 
55.11 	form of a written contract signed by the sponsor and the board of directors of the charter 
55.12 	school. The contract must be completed within 90 days of the commissioner's approval 
55.13 	of the sponsor's proposed authorization. The contract for a charter school must be in 
55.14 	writing and contain at least the following:
55.15 	(1) a description of a program that carries out one or more of the purposes in 
55.16 	subdivision 1;
55.17 	(2) specific outcomes pupils are to achieve under subdivision 10;
55.18 	(3) admission policies and procedures;
55.19 	(4) management and administration of the school;
55.20 	(5) requirements and procedures for program and financial audits;
55.21 	(6) how the school will comply with subdivisions 8, 13, 16, and 23;
55.22 	(7) assumption of liability by the charter school;
55.23 	(8) types and amounts of insurance coverage to be obtained by the charter school;
55.24 	(9) the term of the contract, which may be up to three years for the initial contract, 
55.25 	and up to five years for renewed contracts based on the academic, financial, and 
55.26 	operational performance of the school;
55.27 	(10) ifhow the board of directors or the operators of the charter school will provide 
55.28 	special instruction and services for children with a disability under sections 125A.03
55.29 	to 125A.24, and 125A.65, a description of the financial parameters within which the 
55.30 	charter school will operate to provide the special instruction and services to children 
55.31 	with a disability; and
55.32 	(11) the process and criteria the sponsor intends to use to monitor and evaluate the 
55.33 	fiscal and student performance of the charter school, consistent with subdivision 15.

55.34 	Sec. 43. Minnesota Statutes 2006, section 124D.10, subdivision 7, is amended to read:
56.1 		Subd. 7.Public status; exemption from statutes and rules. A charter school is a 
56.2 	public school and is part of the state's system of public education. Except as provided in 
56.3 	this section, a charter school is exempt from all statutes and rules applicable to a school, 
56.4 	a board, or a district, although it may elect to comply with one or more provisions of 
56.5 	statutes or rules. A charter school is exempt from all statutes and rules applicable to a 
56.6 	school, board, or district unless provided by this section or provided in another section 
56.7 	of statutes or rules.

56.8 	Sec. 44. Minnesota Statutes 2006, section 124D.10, subdivision 20, is amended to read:
56.9 		Subd. 20.Leave to teach in a charter school. If a teacher employed by a district 
56.10 	makes a written request for an extended leave of absence to teach at a charter school, the 
56.11 	district must grant the leave. The district must grant a leave not to exceed a total of five 
56.12 	years. Any request to extend the leave shall be granted only at the discretion of the school 
56.13 	board. The district may require that the request for a leave or extension of leave be made 
56.14 	up to 90 days before the teacher would otherwise have to report for duty before February 
56.15 	1 in the school year preceding the school year in which the teacher wishes to return, or 
56.16 	February 1 of the calendar year in which the leave is scheduled to terminate. Except as 
56.17 	otherwise provided in this subdivision and except for section 122A.46, subdivision 7, the 
56.18 	leave is governed by section 122A.46, including, but not limited to, reinstatement, notice 
56.19 	of intention to return, seniority, salary, and insurance. 
56.20 	During a leave, the teacher may continue to aggregate benefits and credits in the 
56.21 	Teachers' Retirement Association account by paying both the employer and employee 
56.22 	contributions based upon the annual salary of the teacher for the last full pay period before 
56.23 	the leave began. The retirement association may impose reasonable requirements to 
56.24 	efficiently administer this subdivision.

56.25 	Sec. 45. Minnesota Statutes 2006, section 124D.10, subdivision 23, is amended to read:
56.26 		Subd. 23.Causes for nonrenewal or termination of charter school contract. (a) 
56.27 	The duration of the contract with a sponsor must be for the term contained in the contract 
56.28 	according to subdivision 6. The sponsor may or may not renew a contract at the end of 
56.29 	the term for any ground listed in paragraph (b). A sponsor may unilaterally terminate a 
56.30 	contract during the term of the contract for any ground listed in paragraph (b). At least 60 
56.31 	days before not renewing or terminating a contract, the sponsor shall notify the board of 
56.32 	directors of the charter school of the proposed action in writing by registered mail. The 
56.33 	notice shall state the grounds for the proposed action in reasonable detail and that the 
56.34 	charter school's board of directors may request in writing an informal hearing before the 
57.1 	sponsor within 14 days of receiving notice of nonrenewal or termination of the contract. 
57.2 	Failure by the board of directors to make a written request for a hearing within the 14-day 
57.3 	period shall be treated as acquiescence to the proposed action. Upon receiving a timely 
57.4 	written request for a hearing, the sponsor shall give reasonable notice to the charter 
57.5 	school's board of directors of the hearing date. The sponsor shall conduct an informal 
57.6 	hearing before taking final action. The sponsor shall take final action to renew or not 
57.7 	renew a contract by the last day of classes in the school year no later than 15 days before 
57.8 	the termination date or the end of the contract. If the sponsor is a local board, the school's 
57.9 	board of directors may appeal the sponsor's decision to the commissioner.
57.10 	(b) A contract may be terminated or not renewed upon any of the following grounds:
57.11 	(1) failure to meet the requirements for pupil performance contained in the contract;
57.12 	(2) failure to meet generally accepted standards of fiscal management;
57.13 	(3) violations of law; or
57.14 	(4) other good cause shown.
57.15 	If a contract is terminated or not renewed under this paragraph, the school must be 
57.16 	dissolved according to the applicable provisions of chapter 308A or 317A, except when 
57.17 	the commissioner approves the decision of a different eligible sponsor to authorize the 
57.18 	charter school.
57.19 	(c) If at the end of a contract term, either the sponsor orand the charter school 
57.20 	board of directors wants mutually agree to voluntarily terminate the contract, a change 
57.21 	in sponsors is allowed if the commissioner approves the decision of a different eligible 
57.22 	sponsor to authorize the charter school. The party intending to terminate the contract must 
57.23 	notify the other party and the commissioner of its intent at least 90 days before the date on 
57.24 	which the contract ends. Both parties must jointly submit in writing to the commissioner 
57.25 	its intent to terminate the contract. The sponsor that is a party to the existing contract at 
57.26 	least must inform the approved different eligible sponsor about the fiscal and student 
57.27 	performance of the school. If no different eligible sponsor is approved, the school must be 
57.28 	dissolved according to applicable law and the terms of the contract.
57.29 	(d) The commissioner, after providing reasonable notice to the board of directors 
57.30 	of a charter school and the existing sponsor, and after providing an opportunity for a 
57.31 	public hearing, may terminate the existing sponsorial relationship if the charter school 
57.32 	has a history of:
57.33 	(1) sustained failure to meet the requirements for pupil performance contained 
57.34 	in the contract;
57.35 	(2) financial mismanagement; or
57.36 	(2) (3) repeated violations of the law; or
58.1 	(4) other good cause shown.

58.2 	Sec. 46. Minnesota Statutes 2007 Supplement, section 124D.10, subdivision 23a, 
58.3 	is amended to read:
58.4 		Subd. 23a.Related party lease costs. (a) A charter school is prohibited from 
58.5 	entering a lease of real property with a related party as defined in subdivision 26
58.6 	this subdivision, unless the lessor is a nonprofit corporation under chapter 317A or a 
58.7 	cooperative under chapter 308A, and the lease cost is reasonable under section 124D.11, 
58.8 	subdivision 4, clause (1). 
58.9 	(b) For purposes of this subdivision:
58.10 	(1) "related party" means an affiliate or close relative of the other party in question, 
58.11 	an affiliate of a close relative, or a close relative of an affiliate;
58.12 	(2) "affiliate" means a person that directly or indirectly, through one or more 
58.13 	intermediaries, controls, is controlled by, or is under common control with another person;
58.14 	(3) "close relative" means an individual whose relationship by blood, marriage, or 
58.15 	adoption to another individual is no more remote than first cousin;
58.16 	(4) "person" means an individual or entity of any kind; and
58.17 	(5) "control" includes the terms "controlling," "controlled by," and "under common 
58.18 	control with" and means the possession, direct or indirect, of the power to direct or cause 
58.19 	the directions of the management, operations, or policies of a person, whether through 
58.20 	ownership of voting securities, by contract, or otherwise.
58.21 	(b)(c) A lease of real property to be used for a charter school, not excluded in 
58.22 	paragraph (a), must contain the following statement: "This lease is subject to Minnesota 
58.23 	Statutes, section 124D.10, subdivision 23a." 
58.24 	(c)(d) If a charter school enters into as lessee a lease with a related party and the 
58.25 	charter school subsequently closes, the commissioner has the right to recover from the 
58.26 	lessor any lease payments in excess of those that are reasonable under section 124D.11, 
58.27 	subdivision 4, clause (1). 

58.28 	Sec. 47. Minnesota Statutes 2006, section 124D.68, subdivision 2, is amended to read:
58.29 		Subd. 2.Eligible pupils. (a) A pupil under the age of 21 or who meets the 
58.30 	requirements of section 120A.20, subdivision 1, paragraph (c), is eligible to participate in 
58.31 	the graduation incentives program, if the pupil:
58.32 	(1) performs substantially below the performance level for pupils of the same age 
58.33 	in a locally determined achievement test;
59.1 	(2) is at least one year behind in satisfactorily completing coursework or obtaining 
59.2 	credits for graduation;
59.3 	(3) is pregnant or is a parent;
59.4 	(4) has been assessed as chemically dependent;
59.5 	(5) has been excluded or expelled according to sections 121A.40 to 121A.56;
59.6 	(6) has been referred by a school district for enrollment in an eligible program or 
59.7 	a program pursuant to section 124D.69;
59.8 	(7) is a victim of physical or sexual abuse;
59.9 	(8) has experienced mental health problems;
59.10 	(9) has experienced homelessness sometime within six months before requesting a 
59.11 	transfer to an eligible program;
59.12 	(10) speaks English as a second language or has limited English proficiency; or
59.13 	(11) has withdrawn from school or has been chronically truant; or
59.14 	(12) is being treated in a hospital in the seven-county metropolitan area for cancer or 
59.15 	other life threatening illness or is the sibling of an eligible pupil who is being currently 
59.16 	treated, and resides with the pupil's family at least 60 miles beyond the outside boundary 
59.17 	of the seven-county metropolitan area.
59.18 	(b) A pupil who is between the ages of 16 and 21 who meets the criteria of clauses 
59.19 	(2), (5), or (11) may be assigned to an area learning center by the district only after 
59.20 	consultation with the pupil and their parent.

59.21 	Sec. 48. Minnesota Statutes 2006, section 125B.07, is amended by adding a 
59.22 	subdivision to read:
59.23 		Subd. 8.Technology data and guidelines. (a) The department shall maintain a list 
59.24 	of technology infrastructure data including, but not limited to, the following data:
59.25 	(1) instructional technology;
59.26 	(2) technology tools;
59.27 	(3) network and data systems administration;
59.28 	(4) data practices;
59.29 	(5) data management; and
59.30 	(6) facilities infrastructure.
59.31 	Each school must provide the technology data to the department in the form and 
59.32 	manner prescribed by the commissioner. The data must include the impact of each 
59.33 	indicator on student achievement.
60.1 	(b) The commissioner shall maintain technology guidelines for uniform data 
60.2 	collections including common data definitions for required elements, a common course 
60.3 	catalogue, common transcript definitions, and district technology infrastructure standards.

60.4 	Sec. 49. Minnesota Statutes 2006, section 260C.007, subdivision 19, is amended to 
60.5 	read:
60.6 		Subd. 19.Habitual truant. "Habitual truant" means a child under the age of 16
60.7 	18 years who is absent from attendance at school without lawful excuse for seven school 
60.8 	days per school year if the child is in elementary school or for one or more class periods 
60.9 	on seven school days per school year if the child is in middle school, junior high school, 
60.10 	or high school, or a child who is 16 or 17 years of age who is absent from attendance at 
60.11 	school without lawful excuse for one or more class periods on seven school days and who 
60.12 	has not lawfully withdrawn from school under section 120A.22, subdivision 8. 

60.13 	EFFECTIVE DATE. This section is effective the day following final enactment 
60.14 	and applies to the 2008-2009 school year and later.

60.15 	Sec. 50. Minnesota Statutes 2006, section 299F.30, subdivision 1, is amended to read:
60.16 		Subdivision 1.Duties of fire marshal. Consistent with sections 121A.035, 
60.17 	121A.037, and this section, it shall be the duty of the state fire marshal, deputies and 
60.18 	assistants, to require public and private schools and educational institutions to have at 
60.19 	least five fire drills each school year, to expect students to be present and participate 
60.20 	in these drills, and to keep all doors and exits unlocked from the inside of the building 
60.21 	during school hours.

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

60.24 	Sec. 51. Laws 2007, chapter 146, article 2, section 46, subdivision 13, is amended to 
60.25 	read:
60.26 		Subd. 13. Preadvanced placement, advanced placement, international 
60.27 	baccalaureate, and concurrent enrollment programs. For preadvanced placement, 
60.28 	advanced placement, international baccalaureate, and concurrent enrollment programs 
60.29 	under Minnesota Statutes, sections 120B.132 and 124D.091: 

60.30		$ 
	6,500,000
	..... 
	2008 
	
60.31		$ 
	6,500,000
	..... 
	2009 
	
61.1 	Of this amount, $2,500,000 each year is for concurrent enrollment program aid 
61.2 	under Minnesota Statutes, section 124D.091. If the appropriation is insufficient, the 
61.3 	commissioner must proportionately reduce the aid payment to each district. Any balance 
61.4 	in the first year does not cancel but is available in the second year.
61.5 	The base appropriation for fiscal year 2010 and later is $2,000,000.

61.6 	Sec. 52. IMPLEMENTING A STUDENT GROWTH-BASED VALUE-ADDED 
61.7 	SYSTEM.
 61.8 	(a) To implement the requirements of Minnesota Statutes, section 120B.35, 
61.9 	subdivision 3, paragraph (b), and to help parents and members of the public compare the 
61.10 	reported data, the commissioner must convene a group of expert school district assessment 
61.11 	and evaluation staff, including a recognized Minnesota assessment group composed 
61.12 	of assessment and evaluation directors and staff and researchers under Minnesota 
61.13 	Statutes, section 120B.299, subdivision 6, and interested stakeholders, including school 
61.14 	superintendents, school principals, and school teachers to examine the actual statewide 
61.15 	performance of students using Minnesota's growth-based value-added system and 
61.16 	establish criteria for identifying schools and school districts that demonstrate accelerated 
61.17 	growth in order to advance educators' professional development and replicate programs 
61.18 	that succeed in meeting students' diverse learning needs.
61.19 	(b) The commissioner must submit a written report to the education committees of 
61.20 	the house of representatives and senate by February 15, 2009, describing the criteria for 
61.21 	identifying schools and school districts that demonstrate accelerated growth.

61.22 	EFFECTIVE DATE. This section is effective the day following final enactment 
61.23 	and applies to school report cards in the 2008-2009 school year and later.

61.24 	Sec. 53. IMPLEMENTING RIGOROUS COURSEWORK MEASURES 
61.25 	RELATED TO STUDENT PERFORMANCE.
 61.26 	To implement the requirements of Minnesota Statutes, section 120B.35, subdivision 
61.27 	3, paragraph (c), clauses (1) and (2), and to help parents and members of the public 
61.28 	compare the reported data, the commissioner of education must convene a group of 
61.29 	recognized and qualified experts and interested stakeholders including parents to develop 
61.30 	a model projecting anticipated performance of each high school on preparation and 
61.31 	rigorous coursework measures that compares the school with similar schools. The model 
61.32 	must use information about entering high school students based on particular background 
61.33 	characteristics that are predictive of differing rates of college readiness. The characteristics 
61.34 	include grade 8 achievement levels, high school student mobility, high school student 
62.1 	attendance, the nine student categories identified under the federal 2001 No Child Left 
62.2 	Behind Act, and two student gender categories of male and female, respectively, to 
62.3 	predict student performance on these two core measures. The commissioner must use the 
62.4 	anticipated level of entering students' performance to provide a context for interpreting 
62.5 	graduating students' actual performance.

62.6 	EFFECTIVE DATE. This section is effective the day following final enactment 
62.7 	and applies to school report cards beginning July 1, 2011.

62.8 	Sec. 54. IMPLEMENTING MEASURES FOR ASSESSING STUDENTS' 
62.9 	SELF-REPORTED SENSE OF SCHOOL SAFETY, ENGAGEMENT IN 
62.10 	SCHOOL, AND THE QUALITY OF RELATIONSHIPS WITH TEACHERS, 
62.11 	ADMINISTRATORS, AND OTHER STUDENTS.
 62.12 	(a) To implement the requirements of Minnesota Statutes, section 120B.35, 
62.13 	subdivision 3, paragraph (d), and to help parents and members of the public compare the 
62.14 	reported data, the commissioner of education, in consultation with interested stakeholders, 
62.15 	must convene a group of recognized and qualified experts including parents to:
62.16 	(1) analyze the University of Minnesota student safety and engagement survey 
62.17 	instrument and other commonly recognized survey instruments to select or devise the 
62.18 	survey instrument that best meets state accountability requirements;
62.19 	(2) ensure that the identified survey instrument has sound psychometric properties 
62.20 	and is useful for intervention planning;
62.21 	(3) determine at what grade levels to administer the survey instrument and ensure 
62.22 	that the survey instrument can be used at those grade levels; and
62.23 	(4) determine through disaggregated use of survey indicators or other means how to 
62.24 	report "safety" in order to comply with federal law.
62.25 	(b) The commissioner must submit a written report to the education committees of 
62.26 	the house of representatives and senate by February 15, 2009, presenting the experts' 
62.27 	responses to paragraph (a), clauses (1) to (4).

62.28 	EFFECTIVE DATE. This section is effective the day following final enactment 
62.29 	and applies to school report cards beginning July 1, 2011.

62.30 	Sec. 55. GROWTH-BASED VALUE-ADDED SYSTEM.
 62.31 	The growth-based value-added system used by the commissioner of education to 
62.32 	comply with Minnesota Statutes, section 120B.35, subdivision 3, paragraph (b), must be 
62.33 	consistent with the growth-based value-added model contained in the document labeled 
63.1 	"Educational Report Card Growth Model, 2008." The document must be deposited with 
63.2 	the Minnesota Office of the Revisor of Statutes, the Minnesota Legislative Reference 
63.3 	Library, and the Minnesota State Law Library, where the document shall be maintained 
63.4 	until the commissioner implements the growth-based value-added system under 
63.5 	Minnesota Statutes, section 120B.35, subdivision 3, paragraph (b). The recognized 
63.6 	Minnesota assessment group composed of assessment and evaluation directors and 
63.7 	staff and researchers under Minnesota Statutes, section 120B.299, subdivision 6, must 
63.8 	determine whether the growth-based value-added model the commissioner uses to comply 
63.9 	with Minnesota Statutes, section 120B.35, subdivision 3, paragraph (b), is consistent with 
63.10 	the deposited document and report its determination to the education committees of the 
63.11 	house of representatives and senate by February 15, 2009.

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

63.13 	Sec. 56. REVIVAL AND REENACTMENT.
 63.14 	Minnesota Statutes, section 124D.10, subdivision 2a, is revived and reenacted 
63.15 	effective retroactively and without interruption from June 30, 2007.

63.16 	Sec. 57. WORLD-CLASS SCHOOLS WORKING GROUP.
 63.17 		Subdivision 1.Creation. The world class school working group is established 
63.18 	and consists of the following members:
63.19 	(1) three senators, including two members from the majority party and one member 
63.20 	from the minority party, appointed by the Subcommittee on Committees of the Committee 
63.21 	on Rules and Administration of the senate;
63.22 	(2) three members of the house of representatives, including two members appointed 
63.23 	by the speaker of the house and one member appointed by the minority leader;
63.24 	(3) the commissioner of education; and
63.25 	(4) two members of the public who have an interest in education, appointed by 
63.26 	the governor.
63.27 		Subd. 2.Duties. The working group must monitor the progress of the state in 
63.28 	meeting the world-class schools goals under section 120A.03 and propose strategies, 
63.29 	recommendations, and draft legislation to the legislative committees with jurisdiction 
63.30 	over education by January 15 of each year.
63.31 		Subd. 3.Administrative provisions. (a) The commissioner of education must 
63.32 	convene the initial meeting of the working group. Upon request of the working group, the 
63.33 	commissioner must provide meeting space and administrative services for the working 
64.1 	group. The members of the working group must elect a chair or cochairs from the 
64.2 	legislative members of the working group at the initial meeting.
64.3 	(b) Public members of the working group serve without compensation or payment of 
64.4 	expenses.
64.5 	(c) The working group expires January 15, 2015.
64.6 	(d) The working group may accept gifts and grants, which are accepted on behalf of 
64.7 	the state and constitute donations to the state. Funds received under this paragraph are 
64.8 	appropriated to the commissioner of education for purposes of the working group.
64.9 		Subd. 4.Deadline for appointments and designations. The appointments and 
64.10 	designations authorized under this section must be completed by August 1, 2008.

64.11 	Sec. 58. MINNESOTA READING INSTRUCTION COMPETENCE 
64.12 	ASSESSMENT AND PRETEST.
 64.13 		Subdivision 1.Commissioner of education. (a) No later than June 30, 2008, the 
64.14 	commissioner of education shall adopt a reading instruction competence assessment for 
64.15 	all prekindergarten and elementary instructors consistent with Minnesota Statutes, section 
64.16 	122A.18, subdivision 2c. 
64.17 	(b) The commissioner shall report to the senate and house of representatives 
64.18 	committees having jurisdiction over prekindergarten through grade 12 education policy by 
64.19 	July 1, 2008, on the reading instruction competence assessment that was adopted. 
64.20 	(c) The commissioner, in consultation with members of the professional reading 
64.21 	community, shall establish an approved list of reading instruction program centers that 
64.22 	offer staff development and remedial training necessary to successfully complete the 
64.23 	assessment described under Minnesota Statutes, section 122A.18, subdivision 2c, and 
64.24 	adopted in paragraph (a).
64.25 		Subd. 2.Pretest and grant for candidates in an approved teacher preparation 
64.26 	program. (a) No later than November 1, 2008, a candidate enrolled in the final year of an 
64.27 	approved teacher preparation program in prekindergarten or elementary education may 
64.28 	apply to the commissioner of education, in a manner prescribed by the commissioner, to 
64.29 	take a Minnesota reading instruction competence assessment pretest as determined under 
64.30 	subdivision 1, paragraph (a). 
64.31 	(b) A candidate taking the pretest under paragraph (a) is eligible for a grant to attend 
64.32 	an approved reading instruction program if the candidate also commits to attending and 
64.33 	completing an approved reading instruction program of their choosing, and takes the 
64.34 	reading instruction competence assessment as determined under subdivision 1, paragraph 
64.35 	(a), at the completion of the reading instruction program.
65.1 		Subd. 3.Pretest and grant for districts. (a) No later than November 1, 2008, 
65.2 	schools providing instruction in prekindergarten through grade 6 may apply to the 
65.3 	commissioner of education, in a manner prescribed by the commissioner, for their teachers 
65.4 	to take a Minnesota reading instruction competence assessment pretest as determined 
65.5 	under subdivision 1, paragraph (a). 
65.6 	(b) A school is eligible for a grant for prekindergarten through grade 2 teachers to 
65.7 	attend an approved reading instruction program, if the teachers take the pretest, commit to 
65.8 	attending and completing an approved reading instruction program of their choosing, and 
65.9 	take the reading instruction competence assessment as determined under subdivision 1, 
65.10 	paragraph (a), at the completion of the reading instruction program.
65.11 		Subd. 4.Passing score on the Minnesota reading instruction competence 
65.12 	assessment. The commissioner, in cooperation with the testing contractor providing the 
65.13 	reading instruction competence assessment, must use the reading instruction competence 
65.14 	assessment results on the pretest and posttest to determine a passing score on the 
65.15 	Minnesota reading instruction competence assessment by October 1, 2009.

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

65.17 	Sec. 59. FOUNDATIONS OF READING GRANT FOR PREKINDERGARTEN 
65.18 	THROUGH GRADE 2 TEACHERS AND TEACHER CANDIDATES.
 65.19 	Of the amounts allocated under Laws 2007, chapter 146, article 7, section 4, 
65.20 	subdivision 2, paragraph (j), $....... must be allocated for foundations of reading grants 
65.21 	to school districts for their prekindergarten through grade 2 teachers and $....... must be 
65.22 	allocated for foundations of reading grants for prekindergarten and elementary teacher 
65.23 	candidates. The amounts allocated to this program must not be expended until the 
65.24 	commissioner has certified that a private match has been received. 

65.25 	EFFECTIVE DATE. This section is effective for fiscal year 2009 only.

65.26 	Sec. 60. READING INSTRUCTION RULES; LEGISLATIVE REVIEW.
 65.27 	 Beginning Ju1y 1, 2008, and until July 1, 2009, the Board of Teaching must submit 
65.28 	any proposed rules regarding licensure in reading instruction to the chairs of the legislative 
65.29 	committees with jurisdiction over kindergarten through grade 12 education policy by 
65.30 	February 1, 2009. The board may not adopt the rules until the legislature has adjourned 
65.31 	the 2009 regular session.

66.1 	Sec. 61. SCHOOL DISTRICT PLANS TO IMPROVE STUDENTS' ACADEMIC 
66.2 	ACHIEVEMENT.
 66.3 		Subdivision 1.District academic achievement plan; priorities. (a) A school 
66.4 	district experiencing disparities in academic achievement must develop a plan to 
66.5 	significantly improve students' academic achievement using concrete measures to 
66.6 	eliminate differences in academic performance among groups of students defined by 
66.7 	race, ethnicity and income. The plan must:
66.8 	(1) reflect a research-based understanding of high-performing educational systems 
66.9 	and best educational practices;
66.10 	(2) include innovative and practical strategies and programs, whether existing or 
66.11 	new, that supplement district initiatives to increase students' academic achievement under 
66.12 	state and federal educational accountability requirements; and
66.13 	(3) contain valid and reliable measures of student achievement that the district uses 
66.14 	to demonstrate the efficacy of the district plan to the commissioner of education.
66.15 	(b) A district must address the elements under section 63, paragraph (a), to the 
66.16 	extent those elements are implicated in the district's plan.
66.17 	(c) The district must include with the plan the amount of expenditures necessary 
66.18 	to implement the plan. The district must indicate how current resources are used to 
66.19 	implement the plan, including, but not limited to, state-limited English proficiency aid 
66.20 	under Minnesota Statutes, section 124D.65; integration revenue under Minnesota Statutes, 
66.21 	section 124D.86; early childhood family education revenue under Minnesota Statutes, 
66.22 	section 124D.135; school readiness aid under Minnesota Statutes, section 124D.16; basic 
66.23 	skills revenue under Minnesota Statutes, section 126C.10, subdivision 4; extended time 
66.24 	revenue under Minnesota Statutes, section 126C.10, subdivision 2a; and alternative 
66.25 	compensation revenue under Minnesota Statutes, section 122A.415.
66.26 		Subd. 2.Plan. (a) A school district by October 1, 2008, must submit its plan in 
66.27 	electronic format to the commissioner of education, consistent with subdivision 1.
66.28 	(b) The commissioner must analyze the commonalities and differences of the district 
66.29 	plans and submit the analysis and underlying data to the advisory task force on improving 
66.30 	students' academic achievement under section 63 by November 1, 2008, and also report 
66.31 	the substance of the analyses to the education policy and finance committees of the 
66.32 	legislature by January 1, 2009.
66.33 	(c) A school district that submits a plan must be given priority in funding if the 
66.34 	legislature provides funding for implementing the plans.

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

67.1 	Sec. 62. ADVISORY TASK FORCE ON IMPROVING STUDENTS' 
67.2 	ACADEMIC ACHIEVEMENT.
 67.3 	(a) An advisory task force on improving students' academic achievement is 
67.4 	established to review the plans submitted to the commissioner of education and 
67.5 	recommend to the education committees of the legislature a proposal for improving 
67.6 	students' academic achievement and eliminating differences in academic performance 
67.7 	among groups of students defined by race, ethnicity, and income. The task force members 
67.8 	must at least consider how the following education-related issues impact the educational 
67.9 	achievement of low-income and minority students:
67.10 	(1) rigorous preparation and coursework and how to (i) effectively invest in early 
67.11 	childhood and parent education, (ii) impose academic rigor and high expectations on 
67.12 	elementary and secondary students in low-income and minority schools, and (iii) provide 
67.13 	parents, educators, and community members with meaningful opportunities to collaborate 
67.14 	in educating students in low-income and minority schools;
67.15 	(2) professional development for educators and how to (i) provide stronger financial 
67.16 	and professional incentives to attract and retain experienced, bilingual, and culturally 
67.17 	competent teachers and administrators in low-income and minority schools, (ii) recruit and 
67.18 	retain teachers of color, and (iii) develop and include cultural sensitivity and interpersonal 
67.19 	and pedagogical skills training that teachers need for effective intercultural teaching;
67.20 	(3) English language learners and how to (i) use well designed tests, curricula, 
67.21 	and English as a second language programs and services as diagnostic tools to develop 
67.22 	effective student interventions, (ii) monitor students' language capabilities, (iii) provide 
67.23 	academic instruction in English that supports students' learning and is appropriate 
67.24 	for students' level of language proficiency, and (iv) incorporate the perspectives and 
67.25 	contributions of ethnic and racial groups, consistent with Minnesota Statutes, section 
67.26 	120B.022, subdivision 1, paragraph (b);
67.27 	(4) special education and how to (i) incorporate linguistic and cultural sensitivity 
67.28 	into special education diagnosis and referral, (ii) increase the frequency and quality of 
67.29 	prereferral interventions, and (iii) decrease the number of minority and nonnative English 
67.30 	speaking students inappropriately placed in special education;
67.31 	(5) GRAD tests and how to (i) incorporate linguistic and cultural sensitivity into the 
67.32 	reading and math GRAD tests, and (ii) develop interventions to meet students' learning 
67.33 	needs; and
67.34 	(6) valid and reliable data and how to use data on student on-time graduation rates, 
67.35 	student dropout rates, documented disciplinary actions, and completed and rigorous course 
68.1 	work indicators to determine how well-prepared low-income and minority students are for 
68.2 	postsecondary academic and career opportunities.
68.3 	The task force also must examine the findings of a 2008 report by Minnesota 
68.4 	superintendents on strategies for creating a world-class educational system to establish 
68.5 	priorities for improving students' academic achievement. The task force may consider 
68.6 	other related matters at its discretion.
68.7 	(b) The commissioner of education must convene the first meeting of the advisory 
68.8 	task force on improving students' academic achievement by July 1, 2008. The task 
68.9 	force members must adopt internal standards for subsequent meetings. The task force 
68.10 	is composed of the following members:
68.11 	(1) a representative from a Twin Cities metropolitan area school district, a suburban 
68.12 	school district, a school district located in a regional center, and a rural school district, all 
68.13 	four representatives appointed by the state demographer based on identified concentrations 
68.14 	of low-income, minority, and low performing students;
68.15 	(2) a faculty member of a teacher preparation program at the University of 
68.16 	Minnesota's college of education and human development, appointed by the college dean 
68.17 	or the dean's designee;
68.18 	(3) a faculty member from the urban teachers program at Metropolitan State 
68.19 	University appointed by the university president or the president's designee;
68.20 	(4) a faculty member from a MnSCU teacher preparation program located outside 
68.21 	the Twin Cities metropolitan area, appointed by the university president or the president's 
68.22 	designee;
68.23 	(5) a classroom teacher appointed by Education Minnesota;
68.24 	(6) an expert in early childhood care and education appointed by a state early 
68.25 	childhood organization;
68.26 	(7) a member from each state council representing a community of color, appointed 
68.27 	by the respective council;
68.28 	(8) a curriculum specialist with expertise in providing language instruction for 
68.29 	nonnative English speakers, appointed by a state curriculum organization;
68.30 	(9) a special education teacher, appointed by a state organization of special education 
68.31 	educators;
68.32 	(10) a parent of color, appointed by a state parent-teacher organization;
68.33 	(11) a district testing director appointed by a recognized Minnesota assessment 
68.34 	group composed of assessment and evaluation directors and staff and researchers; and
69.1 	(12) a Minnesota Department of Education staff person with expertise in school 
69.2 	desegregation matters appointed by the commissioner of education or the commissioner's 
69.3 	designee.
69.4 	A majority of task force members, at their discretion, may invite other representatives 
69.5 	of interested public or nonpublic organizations, Minnesota's business community, 
69.6 	Minnesota private colleges, Minnesota's communities of color, and stakeholders in local 
69.7 	and state educational equity to become task force members.
69.8 	(c) Task force members' terms and other task force matters are subject to Minnesota 
69.9 	Statutes, section 15.059. The commissioner may reimburse task force members from the 
69.10 	Department of Education's current operating budget but may not compensate task force 
69.11 	members for task force activities. By February 15, 2009, the task force must submit a 
69.12 	written proposal to the education policy and finance committees of the legislature on how 
69.13 	to significantly improve students' academic achievement.
69.14 	(d) The advisory task force expires on February 16, 2009.

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

69.16 	Sec. 63. FIVE-YEAR PILOT PROGRAM FOR IDENTIFYING SYSTEMIC 
69.17 	IMPROVEMENT MEASURES TO BEST SERVE STUDENTS ENROLLED IN 
69.18 	ALTERNATIVE LEARNING CENTERS AND CHARTER SCHOOLS.
 69.19 		Subdivision 1.Definitions. (a) The definitions in this subdivision apply to this 
69.20 	section.
69.21 	(b) "Systemic improvement measures" means methods that yield data and 
69.22 	information showing the progress of a well-ordered and repeatable process directed at 
69.23 	organizational and student learning; for example, management, services, curriculum, 
69.24 	resources, and overall organization.
69.25 	(c) "Process" means a linked activity with the purpose of producing a school 
69.26 	program, resource, or service for students to support learning.
69.27 	(d) "Sustainability" means the ability of the organization to stay current in addressing 
69.28 	the educational needs of students and society. Sustainability includes the ability and 
69.29 	strategic management to prepare for the future.
69.30 		Subd. 2.Establishment; eligibility. A five-year pilot program is established to 
69.31 	allow alternative learning centers and charter schools to identify systemic improvement 
69.32 	measures to best serve eligible students. Interested alternative learning centers and 
69.33 	charter schools must serve eligible students under Minnesota Statutes, section 124D.68, 
69.34 	subdivision 2, to participate in this program.
70.1 		Subd. 3.Application and selection process. Interested alternative learning centers 
70.2 	and charter schools serving eligible students under Minnesota Statutes, section 124D.68, 
70.3 	subdivision 2, may apply to the commissioner of education to participate in this program in 
70.4 	the form and manner the commissioner determines, in consultation with the advisory board 
70.5 	under subdivision 4, and consistent with this section. The applicant must demonstrate 
70.6 	the applicant's interest and ability to implement systemic improvement measures, the 
70.7 	sustainability of those measures, and the process the applicant proposes to use to ensure 
70.8 	that sustainability. The commissioner, after consulting with the advisory board under 
70.9 	subdivision 4, shall select by September 1, 2008, up to a total of 20 program participants.
70.10 		Subd. 4.Advisory board. A Pilot Program Advisory Board is established to make 
70.11 	recommendations to the commissioner about program oversight, including selecting 
70.12 	program participants, coordinating program activities, training program participants, 
70.13 	managing program budgets, and making periodic program reports to the legislature. 
70.14 	The board members include: three Minnesota Association of Alternative Programs 
70.15 	members selected by the Minnesota Association of Alternative Programs; two Minnesota 
70.16 	Association of Charter Schools members selected by the Minnesota Association of 
70.17 	Charter Schools; one Metropolitan Federation of Alternative Schools members selected 
70.18 	by the Metropolitan Federation of Alternative Schools; one Minnesota K-12 Online 
70.19 	Learning Alliance member selected by the Minnesota K-12 Online Learning Alliance; 
70.20 	one Minnesota Department of Education staff selected by the commissioner of education; 
70.21 	two higher education representatives from teacher and administrator training programs 
70.22 	selected by the training programs; one Minnesota Council for Quality member selected by 
70.23 	the council; one member of the Minnesota House of Representatives selected by the house 
70.24 	speaker; and one state senator selected by the senate majority leader. Advisory board 
70.25 	members' terms and other board matters are subject to Minnesota Statutes, section 15.059. 
70.26 	The commissioner may reimburse board members from the Department of Education's 
70.27 	current operating budget but may not compensate board members for board activities. The 
70.28 	Minnesota Association of Alternative Programs president, or the president's designee, 
70.29 	must convene the first advisory board meeting before September 1, 2008. Advisory board 
70.30 	members are expected to meet at least one time per month. The advisory board expires 
70.31 	on March 1, 2014.
70.32 		Subd. 5.Annual reports; evaluation. (a) The commissioner, after consulting with 
70.33 	the advisory board under subdivision 4, annually must submit to the education policy 
70.34 	and finance committees of the legislature no later than February 1 of the proximate 
70.35 	school year, a longitudinal report detailing the efforts and success of program participants 
71.1 	to implement systemic improvement measures to best serve eligible students under 
71.2 	Minnesota Statutes, section 124D.68, subdivision 2.
71.3 	(b) The commissioner must contract with a qualified expert in systemic improvement 
71.4 	at the University of Minnesota College of Education and Human Development to evaluate 
71.5 	and report on short- and long-term program efficacy throughout the term of the program. 
71.6 	The commissioner must immediately convey the expert's reports to the education policy 
71.7 	and finance committees of the legislature upon receipt.
71.8 		Subd. 6.Waivers. (a) Consistent with the data results submitted by program 
71.9 	participants, the commissioner of education must petition the federal Department of 
71.10 	Education for waivers from No Child Left Behind requirements to allow program 
71.11 	participants to use alternative forms of assessment. Also consistent with the data results 
71.12 	submitted by program participants, the commissioner must waive those state education 
71.13 	rules that interfere with the ability of program participants to implement systemic 
71.14 	improvement measures.
71.15 	(b) Notwithstanding Minnesota Statutes, section 120A.41, or other law to the 
71.16 	contrary, program participants must annually allocate five days of student instruction for 
71.17 	staff development in systemic improvement measures.

71.18 	EFFECTIVE DATE. This section is effective for the 2008-2009 through 2012-2013 
71.19 	school years.

71.20 	Sec. 64. APPROPRIATION.
 71.21 		Subdivision 1.Department of Education. The sums indicated in this section are 
71.22 	appropriated from the general fund to the Department of Education for the fiscal years 
71.23 	designated.
71.24 		Subd. 2.Alternative Learning Center and charter school grants. For grants to 
71.25 	Alternative Learning Centers and charter schools:

71.26		$
	.......
	.....
	2009

71.27 	A program participant must obtain a dollar-for-dollar nonstate match. The 
71.28 	commissioner must allocate the appropriation on a per student basis to eligible program 
71.29 	participants for costs related to participating in the program.

71.30 	Sec. 65. REVISOR'S INSTRUCTION.
 72.1 	In Minnesota Statutes, the revisor of statutes shall renumber section 122A.60, 
72.2 	subdivision 1a, as section 122A.60, subdivision 3a, and make necessary cross-reference 
72.3 	changes consistent with the renumbering.

72.4 	Sec. 66. REPEALER.
 72.5 	Minnesota Statutes 2006, section 120A.22, subdivision 8, is repealed.

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

72.8 	ARTICLE 3
72.9 	SPECIAL PROGRAMS

72.10 	Section 1. Minnesota Statutes 2006, section 124D.60, subdivision 1, is amended to 
72.11 	read:
72.12 		Subdivision 1.Notice. Within ten30 days after the enrollment of any pupil in an 
72.13 	instructional program for limited English proficient students, the district in which the pupil 
72.14 	resides must notify the parent by mail. This notice must:
72.15 	(1) be in writing in English and in the primary language of the pupil's parents;
72.16 	(2) inform the parents that their child has been enrolled in an instructional program 
72.17 	for limited English proficient students;
72.18 	(3) contain a simple, nontechnical description of the purposes, method and content 
72.19 	of the program;
72.20 	(4) inform the parents that they have the right to visit the educational program for 
72.21 	limited English proficient students in which their child is enrolled;
72.22 	(5) inform the parents of the time and manner in which to request and receive a 
72.23 	conference for the purpose of explaining the nature and purpose of the program; and
72.24 	(6) inform the parents of their rights to withdraw their child from an educational 
72.25 	program for limited English proficient students and the time and manner in which to do so.
72.26 	The department shall, at the request of the district, prepare the notice in the primary 
72.27 	language of the parent.

72.28 	Sec. 2. Minnesota Statutes 2006, section 125A.02, subdivision 1, is amended to read:
72.29 		Subdivision 1.Child with a disability. Every child who has a hearing impairment, 
72.30 	blindness, visual disability, speech or language impairment, physical disability, other 
72.31 	health impairment, mental disability, emotional/behavioral disorder, specific learning 
72.32 	disability, autism, traumatic brain injury, multiple disabilities, or deaf/blind disability 
73.1 	and needs special instruction and services, as determined by the standards of the 
73.2 	commissioner, is a child with a disability. A licensed physician or a licensed psychologist 
73.3 	is qualified to make a diagnosis and determination of attention deficit disorder or attention 
73.4 	deficit hyperactivity disorder for purposes of identifying a child with a disability. In 
73.5 	addition, every child under age three, and at local district discretion from age three to age 
73.6 	seven, who needs special instruction and services, as determined by the standards of the 
73.7 	commissioner, because the child has a substantial delay or has an identifiable physical or 
73.8 	mental condition known to hinder normal development is a child with a disability.

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

73.10 	Sec. 3. Minnesota Statutes 2006, section 125A.15, is amended to read:
73.11 	125A.15 PLACEMENT IN ANOTHER DISTRICT; RESPONSIBILITY.
73.12 	The responsibility for special instruction and services for a child with a disability 
73.13 	temporarily placed in another district for care and treatment shall be determined in the 
73.14 	following manner:
73.15 	(a) The district of residence of a child shall be the district in which the child's parent 
73.16 	resides, if living, or the child's guardian, or the district designated by the commissioner if 
73.17 	neither parent nor guardian is living within the state.
73.18 	(b) If the placement of a pupil for care and treatment is not made by the district 
73.19 	of residence, the district of residence must be notified and provided an opportunity 
73.20 	to participate in the placement decision. When an immediate emergency placement 
73.21 	is necessary and time does not permit resident district participation in the placement 
73.22 	decision, the district in which the pupil is temporarily placed, if different from the district 
73.23 	of residence, must notify the district of residence of the emergency placement within 15 
73.24 	days of the placement. When placement has been made without prior consultation with 
73.25 	the resident district, the resident district has up to five business days following notice of 
73.26 	the emergency placement to respond and must, at that time, be provided an opportunity 
73.27 	to participate in the placement decision. 
73.28 	(b) (c)  When a child is temporarily placed for care and treatment in a day program 
73.29 	located in another district and the child continues to live within the district of residence 
73.30 	during the care and treatment, the district of residence is responsible for providing 
73.31 	transportation to and from the care and treatment facility program  and an appropriate 
73.32 	educational program for the child. The resident district may establish reasonable 
73.33 	restrictions on transportation; however, if a court or state agency has ordered the placement 
73.34 	at the day care and treatment program and the resident district receives a copy of the order, 
74.1 	the resident district must provide transportation to and from the program unless the court 
74.2 	or agency otherwise orders. Transportation shall only be provided by the resident district 
74.3 	during regular operating hours of the that  district. The resident district may provide the 
74.4 	educational program at a school within the district of residence, at the child's residence, or 
74.5 	in the district in which the day treatment center is located by paying tuition to that district.
74.6 	(c) (d)  When a child is temporarily placed in a residential program for care and 
74.7 	treatment, the nonresident district in which the child is placed is responsible for providing 
74.8 	an appropriate educational program for the child and necessary transportation while the 
74.9 	child is attending the educational program; and must bill the district of the child's residence 
74.10 	for the actual cost of providing the program, as outlined in section 125A.11, except as 
74.11 	provided in paragraph (d) (e). However, the board, lodging, and treatment costs incurred 
74.12 	in behalf of a child with a disability placed outside of the school district of residence by 
74.13 	the commissioner of human services or the commissioner of corrections or their agents, 
74.14 	for reasons other than providing for the child's special educational needs must not become 
74.15 	the responsibility of either the district providing the instruction or the district of the child's 
74.16 	residence. For the purposes of this section, the state correctional facilities operated on a 
74.17 	fee-for-service basis are considered to be residential programs for care and treatment. 
74.18 	(d) (e)  A privately owned and operated residential facility may enter into a contract 
74.19 	to obtain appropriate educational programs for special education children and services 
74.20 	with a joint powers entity. The entity with which the private facility contracts for special 
74.21 	education services shall be the district responsible for providing students placed in that 
74.22 	facility an appropriate educational program in place of the district in which the facility is 
74.23 	located. If a privately owned and operated residential facility does not enter into a contract 
74.24 	under this paragraph, then paragraph (c) (d)  applies.
74.25 	(e) (f)  The district of residence shall pay tuition and other program costs, not 
74.26 	including transportation costs, to the district providing the instruction and services. 
74.27 	The district of residence may claim general education aid for the child as provided by 
74.28 	law. Transportation costs must be paid by the district responsible for providing the 
74.29 	transportation and the state must pay transportation aid to that district.

74.30 	Sec. 4. Minnesota Statutes 2006, section 125A.51, is amended to read:
74.31 	125A.51 PLACEMENT OF CHILDREN WITHOUT DISABILITIES; 
74.32 	EDUCATION AND TRANSPORTATION.
74.33 	The responsibility for providing instruction and transportation for a pupil without a 
74.34 	disability who has a short-term or temporary physical or emotional illness or disability, as 
75.1 	determined by the standards of the commissioner, and who is temporarily placed for care 
75.2 	and treatment for that illness or disability, must be determined as provided in this section.
75.3 	(a) The school district of residence of the pupil is the district in which the pupil's 
75.4 	parent or guardian resides.
75.5 	(b) When parental rights have been terminated by court order, the legal residence 
75.6 	of a child placed in a residential or foster facility for care and treatment is the district in 
75.7 	which the child resides.
75.8 	(c) Before the placement of a pupil for care and treatment, the district of residence 
75.9 	must be notified and provided an opportunity to participate in the placement decision. 
75.10 	When an immediate emergency placement is necessary and time does not permit 
75.11 	resident district participation in the placement decision, the district in which the pupil is 
75.12 	temporarily placed, if different from the district of residence, must notify the district of 
75.13 	residence of the emergency placement within 15 days of the placement. When placement 
75.14 	has been made without prior consultation with the resident district, the resident district 
75.15 	has up to five business days following notice of the emergency placement to respond and 
75.16 	must, at that time, be provided an opportunity to participate in the placement decision.
75.17 	(d) When a pupil without a disability is temporarily placed for care and treatment 
75.18 	in a day program and the pupil continues to live within the district of residence during 
75.19 	the care and treatment, the district of residence must provide instruction and necessary 
75.20 	transportation to and from the care and treatment facility program for the pupil. The 
75.21 	resident district may establish reasonable restrictions on transportation; however, if a 
75.22 	Minnesota court or state agency has ordered the placement at the day care and treatment 
75.23 	program and the resident district receives a copy of the order, the resident district must 
75.24 	provide transportation to and from the program unless the court or agency otherwise 
75.25 	orders. Transportation shall only be provided by the resident district during regular 
75.26 	operating hours of the that district. The resident district may provide the instruction at a 
75.27 	school within the district of residence, at the pupil's residence, or in the case of a placement 
75.28 	outside of the resident district, in the district in which the day treatment program is located 
75.29 	by paying tuition to that district. The district of placement may contract with a facility to 
75.30 	provide instruction by teachers licensed by the state Board of Teaching.
75.31 	(e) When a pupil without a disability is temporarily placed in a residential program 
75.32 	for care and treatment, the district in which the pupil is placed must provide instruction 
75.33 	for the pupil and necessary transportation while the pupil is receiving instruction, and in 
75.34 	the case of a placement outside of the district of residence, the nonresident district must 
75.35 	bill the district of residence for the actual cost of providing the instruction for the regular 
75.36 	school year and for summer school, excluding transportation costs.
76.1 	(f) Notwithstanding paragraph (e), if the pupil is homeless and placed in a public or 
76.2 	private homeless shelter, then the district that enrolls the pupil under section 127A.47, 
76.3 	subdivision 2, shall provide the transportation, unless the district that enrolls the pupil 
76.4 	and the district in which the pupil is temporarily placed agree that the district in which 
76.5 	the pupil is temporarily placed shall provide transportation. When a pupil without a 
76.6 	disability is temporarily placed in a residential program outside the district of residence, 
76.7 	the administrator of the court placing the pupil must send timely written notice of the 
76.8 	placement to the district of residence. The district of placement may contract with a 
76.9 	residential facility to provide instruction by teachers licensed by the state Board of 
76.10 	Teaching. For purposes of this section, the state correctional facilities operated on a 
76.11 	fee-for-service basis are considered to be residential programs for care and treatment.
76.12 	(g) The district of residence must include the pupil in its residence count of pupil 
76.13 	units and pay tuition as provided in section 123A.488 to the district providing the 
76.14 	instruction. Transportation costs must be paid by the district providing the transportation 
76.15 	and the state must pay transportation aid to that district. For purposes of computing state 
76.16 	transportation aid, pupils governed by this subdivision must be included in the disabled 
76.17 	transportation category if the pupils cannot be transported on a regular school bus route 
76.18 	without special accommodations.

76.19 	Sec. 5. Minnesota Statutes 2006, section 125A.744, subdivision 3, is amended to read:
76.20 		Subd. 3.Implementation. Consistent with section 256B.0625, subdivision 26, 
76.21 	school districts may enroll as medical assistance providers or subcontractors and bill 
76.22 	the Department of Human Services under the medical assistance fee for service claims 
76.23 	processing system for special education services which are covered services under chapter 
76.24 	256B, which are provided in the school setting for a medical assistance recipient, and for 
76.25 	whom the district has secured informed consent consistent with section 13.05, subdivision 
76.26 	4, paragraph (d), and section 256B.77, subdivision 2, paragraph (p), to bill for each type 
76.27 	of covered service. School districts shall be reimbursed by the commissioner of human 
76.28 	services for the federal share of individual education plan health-related services that 
76.29 	qualify for reimbursement by medical assistance, minus up to five percent retained by the 
76.30 	commissioner of human services for administrative costs, not to exceed $350,000 per 
76.31 	fiscal year. The commissioner may withhold up to five percent of each payment to a 
76.32 	school district. Following the end of each fiscal year, the commissioner shall settle up with 
76.33 	each school district in order to ensure that collections from each district for departmental 
76.34 	administrative costs are made on a pro rata basis according to federal earnings for these 
76.35 	services in each district. A school district is not eligible to enroll as a home care provider 
77.1 	or a personal care provider organization for purposes of billing home care services under 
77.2 	sections 256B.0651 and 256B.0653 to 256B.0656 until the commissioner of human 
77.3 	services issues a bulletin instructing county public health nurses on how to assess for the 
77.4 	needs of eligible recipients during school hours. To use private duty nursing services or 
77.5 	personal care services at school, the recipient or responsible party must provide written 
77.6 	authorization in the care plan identifying the chosen provider and the daily amount 
77.7 	of services to be used at school.

77.8 	Sec. 6. EXPEDITED PROCESS; SPECIFIC LEARNING DISABILITY RULE.
 77.9 	The commissioner of education may use the expedited process under Minnesota 
77.10 	Statutes, section 14.389, to conform Minnesota Rules, part 3525.1341, to new federal 
77.11 	requirements on specific learning disabilities under Public Law 108-446, sections 602(30) 
77.12 	and 614(b)(6), the Individuals with Disabilities Education Improvement Act of 2004, 
77.13 	and its implementing regulations.

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

77.15 	Sec. 7.  REPEALER.
 77.16 	 Minnesota Statutes 2006, section 121A.67, and Laws 2006, chapter 263, article 3, 
77.17 	section 16,  are repealed.

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

77.19 	ARTICLE 4
77.20 	LIBRARIES AND FACILITIES

77.21 	Section 1. Minnesota Statutes 2006, section 123B.51, is amended by adding a 
77.22 	subdivision to read:
77.23 		Subd. 5a.Temporary closing.  A school district that proposes to temporarily close a 
77.24 	schoolhouse or that intends to lease the facility to another entity for use as a schoolhouse 
77.25 	for three or fewer years is not subject to subdivision 5 if the school board holds a public 
77.26 	meeting and allows public comment on the schoolhouse's future. 

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

77.28 	Sec. 2. Minnesota Statutes 2006, section 123B.59, subdivision 1, is amended to read:
77.29 		Subdivision 1.To qualify. (a) An independent or special school district qualifies to 
77.30 	participate in the alternative facilities bonding and levy program if the district has:
78.1 	(1) more than 66 students per grade;
78.2 	(2) over 1,850,000 square feet of space and the average age of building space is 15 
78.3 	years or older or over 1,500,000 square feet and the average age of building space is 
78.4 	35 years or older;
78.5 	(3) insufficient funds from projected health and safety revenue and capital facilities 
78.6 	revenue to meet the requirements for deferred maintenance, to make accessibility 
78.7 	improvements, or to make fire, safety, or health repairs; and
78.8 	(4) a ten-year facility plan approved by the commissioner according to subdivision 2.
78.9 	(b) An independent or special school district not eligible to participate in the 
78.10 	alternative facilities bonding and levy program under paragraph (a) qualifies for limited 
78.11 	participation in the program if the district has:
78.12 	(1) one or more health and safety projects with an estimated cost of $500,000 or 
78.13 	more per site that would qualify for health and safety revenue except for the project size 
78.14 	limitation in section 123B.57, subdivision 1, paragraph (b); and 
78.15 	(2) insufficient funds from capital facilities revenue to fund those projects.
78.16 	(c) Notwithstanding the square footage limitation in paragraph (a), clause (2), 
78.17 	a school district that qualified for eligibility under paragraph (a) as of July 1, 2007, 
78.18 	remains eligible for funding under this section as long as the district continues to meet 
78.19 	the requirements of paragraph (a), clauses (1), (3), and (4).

78.20 	Sec. 3. Minnesota Statutes 2007 Supplement, section 134.31, subdivision 4a, is 
78.21 	amended to read:
78.22 		Subd. 4a.Services to the blind and physically handicapped. The Minnesota 
78.23 	Department of Education shall provide specialized services to the blind and physically 
78.24 	handicapped through the Minnesota Braille and Talking Book Library for the Blind and 
78.25 	Physically Handicapped under a cooperative plan with the National Library Services for 
78.26 	the Blind and Physically Handicapped of the Library of Congress.

78.27 	Sec. 4. Minnesota Statutes 2006, section 134.31, subdivision 6, is amended to read:
78.28 		Subd. 6.Advisory committee. The commissioner shall appoint an advisory 
78.29 	committee of five members to advise the staff of the Minnesota Braille and Talking 
78.30 	Book Library for the Blind and Physically Handicapped on long-range plans and library 
78.31 	services. Members shall be people who use the library. Section 15.059 governs this 
78.32 	committee except that the committee shall not expire.

79.1 	Sec. 5. Minnesota Statutes 2006, section 134.31, is amended by adding a subdivision 
79.2 	to read:
79.3 		Subd. 7.Telephone or electronic meetings. (a) Notwithstanding section 13D.01, 
79.4 	the Advisory Committee for the Minnesota Braille and Talking Book Library may conduct 
79.5 	a meeting of its members by telephone or other electronic means so long as the following 
79.6 	conditions are met:
79.7 	(1) all members of the committee participating in the meeting, wherever their 
79.8 	physical locations, can hear one another and can hear all discussion and testimony;
79.9 	(2) members of the public present at the regular meeting location of the committee 
79.10 	can hear all discussion, testimony, and votes of the members of the committee;
79.11 	(3) at least one member of the committee is physically present at the regular meeting 
79.12 	location; and
79.13 	(4) all votes are conducted by roll call, so each member's votes on each issue can be 
79.14 	identified and recorded.
79.15 	(b) Each member of the committee participating in a meeting by telephone or other 
79.16 	electronic means is considered present at the meeting for purposes of determining quorum 
79.17 	and participating in all proceedings.
79.18 	(c) If telephone or other electronic means is used to conduct a meeting, to the extent 
79.19 	practical, the committee shall allow a person to monitor the meeting electronically from a 
79.20 	remote location. The committee may require the person making the connection to pay 
79.21 	for the documented marginal costs that the committee incurs as a result of the additional 
79.22 	connection.
79.23 	(d) If telephone or other electronic means is used to conduct a regular, special, or 
79.24 	emergency meeting, the committee shall provide notice of the regular meeting location, 
79.25 	the fact that some members may participate by telephone or other electronic means, and 
79.26 	the provisions of paragraph (c). The timing and method of providing notice is governed 
79.27 	by section 13D.04.

79.28 	Sec. 6. [134.55] ELECTRONIC LIBRARY FOR MINNESOTA.
79.29 	Notwithstanding Laws 1998, chapter 398, article 9, section 7, as amended by Laws 
79.30 	1999, chapter 241, article 8, section 3, a school media center, public library as defined 
79.31 	by section 134.001, subdivision 2, state government agency library, and public or private 
79.32 	college or university library must be given access to the electronic library for Minnesota 
79.33 	databases regardless of whether or not they are a member of a regional library system.

80.1 	ARTICLE 5
80.2 	STATE AGENCIES

80.3 	Section 1. Minnesota Statutes 2006, section 122A.14, is amended by adding a 
80.4 	subdivision to read:
80.5 		Subd. 2a.Gifted and talented preparation. A university approved by the board to 
80.6 	prepare candidates for administrative licensure must provide candidates, as part of the 
80.7 	traditional and alternative preparation programs, the opportunity to acquire competency in 
80.8 	administering gifted and talented services.

80.9 	EFFECTIVE DATE. This section is effective the day following final enactment 
80.10 	and applies to candidates who enroll in either a traditional or an alternative preparation 
80.11 	administrator licensure program after August 15, 2009.

80.12 	Sec. 2. Minnesota Statutes 2006, section 122A.14, is amended by adding a subdivision 
80.13 	to read:
80.14 		Subd. 2c.Gifted and talented preparation; board review. (a) The board must 
80.15 	periodically review and approve traditional and alternative preparation sequences for 
80.16 	school administrators and the sequence of competencies in administering gifted and 
80.17 	talented student programs and services.
80.18 	(b) The board also may advise a university on developing and implementing 
80.19 	continuing education programs focused on building competencies for administering gifted 
80.20 	and talented programs and other gifted services.

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

80.22 	Sec. 3. Minnesota Statutes 2006, section 122A.18, is amended by adding a subdivision 
80.23 	to read:
80.24 		Subd. 10.Gifted and talented preparation; board review. (a) A college or 
80.25 	university with a teacher preparation program approved by the board must provide teacher 
80.26 	candidates with the opportunity to acquire competency in recognizing gifted students and 
80.27 	in providing classroom instruction to gifted and talented students.
80.28 	(b) The board must periodically review and approve traditional and alternative 
80.29 	sequences for teacher candidates in recognizing gifted students and in providing classroom 
80.30 	instruction to gifted and talented students.

81.1 	EFFECTIVE DATE. This section is effective the day following final enactment 
81.2 	and applies to teacher candidates who enroll in either a traditional or an alternative 
81.3 	preparation teacher licensure program after September 1, 2009.

81.4 	Sec. 4. Minnesota Statutes 2006, section 122A.75, subdivision 1, is amended to read:
81.5 		Subdivision 1.Services. An Administrators Academy is established. The academy 
81.6 	shall provide at least the following services:
81.7 	(1) an administrator assessment that results in an individual professional 
81.8 	development plan;
81.9 	(2) research and development assistance that provides current research and data 
81.10 	of interest to administrators; and
81.11 	(3) brokerage assistance to provide services and resources to help administrators 
81.12 	with needs identified in their individual professional development plan; and
81.13 	(4) the opportunity for administrators to acquire competency in administering gifted 
81.14 	and talented services, consistent with section 122A.14, subdivision 2c.

81.15 	EFFECTIVE DATE. This section is effective the day following final enactment 
81.16 	and applies to administrators participating in an administrators academy program after 
81.17 	August 1, 2009.

81.18 	Sec. 5. Minnesota Statutes 2006, section 125A.65, subdivision 4, is amended to read:
81.19 		Subd. 4.Unreimbursed costs. (a) For fiscal year 2006, in addition to the tuition 
81.20 	charge allowed in subdivision 3, the academies may charge the child's district of residence 
81.21 	for the academy's unreimbursed cost of providing an instructional aide assigned to that 
81.22 	child, after deducting the special education aid under section 125A.76, attributable to the 
81.23 	child, if that aide is required by the child's individual education plan. Tuition received 
81.24 	under this paragraph must be used by the academies to provide the required service.
81.25 	(b) For fiscal year 20072008 and later, the special education aid paid to the 
81.26 	academies shall be increased by the academy's unreimbursed cost of providing anone 
81.27 	to one instructional aideand behavioral management aides assigned to a child, after 
81.28 	deducting the special education aid under section 125A.76 attributable to the child, if that 
81.29 	aide isthe aides are required by the child's individual education plan. Aid received under 
81.30 	this paragraph must be used by the academies to provide the required service.
81.31 	(c) For fiscal year 20072008 and later, the special education aid paid to the district 
81.32 	of the child's residence shall be reduced by the amount paid to the academies for district 
81.33 	residents under paragraph (b).
82.1 	(d) Notwithstanding section 127A.45, subdivision 3, beginning in fiscal year 2008, 
82.2 	the commissioner shall make an estimated final adjustment payment to the Minnesota 
82.3 	State Academies for general education aid and special education aid for the prior fiscal 
82.4 	year by August 15.
82.5 	(e) For fiscal year 2007, the academies may retain receipts received through mutual 
82.6 	agreements with school districts for one to one behavior management aides.

82.7 	EFFECTIVE DATE. This section is effective the day following final enactment 
82.8 	for revenue in fiscal year 2008.

82.9 	Sec. 6. Minnesota Statutes 2006, section 125A.65, is amended by adding a subdivision 
82.10 	to read:
82.11 		Subd. 11.Third party reimbursement. The Minnesota State Academies must seek 
82.12 	reimbursement under section 125A.21 from third parties for the cost of services provided 
82.13 	by the Minnesota State Academies whenever the services provided are otherwise covered 
82.14 	by a child's public or private health plan.

82.15 	EFFECTIVE DATE. This section is effective the day following final enactment 
82.16 	for revenue in fiscal year 2008.

82.17 	Sec. 7. [125B.015] STATE AND SCHOOL DISTRICT TECHNOLOGY 
82.18 	STANDARDS.
82.19 		Subdivision 1.State technology standards; standard setting. (a) Notwithstanding 
82.20 	other law to the contrary, the commissioner, the Minnesota Education Technology Task 
82.21 	Force, and representatives of school districts must enter into a technology partnership to 
82.22 	identify for school districts the robust technology tools and systems that improve the 
82.23 	educational achievement of all Minnesota students. The partnership must establish a 
82.24 	foundation of flexible shared services that supports state development and implementation 
82.25 	of new and more efficient educational business practices, including the use of modern 
82.26 	analytical tools that help schools and school districts make data-driven decisions 
82.27 	and increase instructional time. The partnership also must anticipate the needs of 
82.28 	school districts for effectively using emerging technologies to make the best and most 
82.29 	cost-effective use of finite educational resources.
82.30 	(b) The commissioner, in collaboration with the other members of the technology 
82.31 	partnership and other interested and affected stakeholders, must establish and then 
82.32 	maintain, revise, and publish every four years beginning June 1, 2012, state and district 
82.33 	technology standards and accompanying guidelines consistent with the requirements of 
83.1 	this section. The state and school districts must use the technology standards to participate 
83.2 	in a uniform data collection system premised on:
83.3 	(1) common data definitions for all required data elements;
83.4 	(2) a common course catalogue;
83.5 	(3) common transcript definitions; and
83.6 	(4) school district infrastructure technology standards.
83.7 		Subd. 2.District technology standards. (a) The commissioner, in collaboration 
83.8 	with the Minnesota Education Technology Task Force, must establish and then maintain, 
83.9 	revise, and publish six categories of district technology standards consistent with this 
83.10 	section. The district technology standards must encompass:
83.11 	(1) instructional technology that include best practices in 21st century classroom 
83.12 	instruction and student learning;
83.13 	(2) technological tools that support formative and summative online assessments, 
83.14 	equipment, and software;
83.15 	(3) shared services that facilitate network and data systems administration;
83.16 	(4) data practices that include technical security, Internet safety, and data privacy;
83.17 	(5) data management that facilitates efficient data transfers involving school districts 
83.18 	and the department; and
83.19 	(6) facilities infrastructure that supports multipurpose technology facilities for 
83.20 	instruction and assessment.
83.21 	(b) School districts must align district technology expenditures with state and district 
83.22 	technology standards established under this section.
83.23 	(c) Beginning December 1, 2010, and each two-year period thereafter, school 
83.24 	districts must use the district technology standards in this section to complete a review of 
83.25 	the district technology environment that:
83.26 	(1) examines the alignment of district technology expenditures to the technology 
83.27 	standards under this section;
83.28 	(2) identifies service gaps in the district technology plan; and
83.29 	(3) estimates the funding needed to fill service gaps.
83.30 	(d) School districts must transmit the substance of the review to the commissioner in 
83.31 	the form and manner the commissioner determines in collaboration with the Minnesota 
83.32 	Education Technology Task Force. The commissioner must evaluate and report the 
83.33 	substance of the reviews to the legislature by February 15, 2011, and each two-year period 
83.34 	thereafter.
83.35 		Subd. 3.Nonapplicability. Consistent with section 14.03, subdivision 3, paragraph 
83.36 	(b), clause (4), and notwithstanding other law to the contrary, the state and district 
84.1 	technology standards established, maintained, revised, and published under this section 
84.2 	are not subject to chapter 14.

84.3 	EFFECTIVE DATE. This section is effective the day following final enactment 
84.4 	and applies to the 2008-2009 school year and later.

84.5 	Sec. 8. [127A.70] MINNESOTA P-20 EDUCATION PARTNERSHIP.
84.6 		Subdivision 1.Establishment; membership. (a) A P-20 education partnership is 
84.7 	established to create a seamless system of education that maximizes achievements of 
84.8 	all students, from early childhood through elementary, secondary, and postsecondary 
84.9 	education, while promoting the efficient use of financial and human resources. The 
84.10 	partnership shall consist of major statewide educational groups or constituencies or 
84.11 	noneducational statewide organizations with a stated interest in P-20 education. Upon 
84.12 	enactment of this legislation, the members shall be those currently serving on the 
84.13 	Minnesota P-16 Education Partnership plus four legislators as follows: 
84.14 	(1) one senator from the majority party and one senator from the minority party, 
84.15 	appointed by the Subcommittee on Committees of the Committee on Rules and 
84.16 	Administration; and 
84.17 	(2) one member of the house of representatives appointed by the speaker of the 
84.18 	house and one member appointed by the minority leader of the house. 
84.19 	Prospective members may be nominated by any partnership member and new 
84.20 	members will be added with the approval of a two-thirds majority of the partnership. The 
84.21 	partnership will also seek input from nonmember organizations whose expertise can 
84.22 	help inform the partnership's work. 
84.23 	Partnership members shall be represented by the chief executives, presidents, or 
84.24 	other formally designated leaders of their respective organizations, or their designees. The 
84.25 	partnership shall meet at least three times during each calendar year. 
84.26 		Subd. 2. Powers and duties; report.  The partnership shall develop 
84.27 	recommendations to the governor and the legislature designed to maximize the 
84.28 	achievement of all P-20 students while promoting the efficient use of state resources, 
84.29 	thereby helping the state realize the maximum value for its investment. These 
84.30 	recommendations may include, but are not limited to, strategies, policies, or other actions 
84.31 	focused on: 
84.32 	(1) improving the quality of and access to education at all points from preschool 
84.33 	through the graduate education; 
84.34 	(2) improving preparation for, and transitions to, postsecondary education and 
84.35 	work; and 
85.1 	(3) ensuring educator quality by creating rigorous standards for teacher recruitment, 
85.2 	teacher preparation, induction and mentoring of beginning teachers, and continuous 
85.3 	professional development for career teachers. 
85.4 	By January 15 of each year, the partnership shall submit a report to the governor 
85.5 	and to the legislature that summarizes the partnership's progress in meeting its goals and 
85.6 	identifies the need for any draft legislation when necessary to further the goals of the 
85.7 	partnership to maximize student achievement while promoting efficient use of resources. 

85.8 	Sec. 9. Minnesota Statutes 2006, section 205A.03, subdivision 1, is amended to read:
85.9 		Subdivision 1.Required Resolution requiring primary in certain circumstances.
 85.10 	In The school board of a school district election, may, by resolution adopted by June 1 of 
85.11 	any year, decide to choose school board nominees by a primary under this section. The 
85.12 	resolution, when adopted, is effective for all subsequent board member elections in the 
85.13 	school district until it is revoked. If the board decides to choose nominees by primary 
85.14 	and if there are more than two candidates for a specified school board position or more 
85.15 	than twice as many school board candidates as there are at-large school board positions 
85.16 	available, a school district must hold a primary.

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

85.18 	Sec. 10. Minnesota Statutes 2006, section 205A.06, subdivision 1a, is amended to read:
85.19 		Subd. 1a.Filing period. In school districts that have adopted a resolution to choose 
85.20 	nominees for school board by a primary election, affidavits of candidacy must be filed 
85.21 	with the school district clerk no earlier than the 70th day and no later than the 56th day 
85.22 	before the first Tuesday after the second Monday in September in the year when the 
85.23 	school district general election is held. In all other school districts, affidavits of candidacy 
85.24 	must be filed no earlier than the 70th day and no later than the 56th day before the school 
85.25 	district's general election.

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

85.27 	Sec. 11. COMPUTER ADAPTIVE ASSESSMENTS.
 85.28 	The Department of Education, by December 1, 2008, must report to the education 
85.29 	committees of the legislature on it efforts to add a computer adaptive assessment that 
85.30 	includes formative analytics to the Minnesota's comprehensive assessment administered 
85.31 	under Minnesota Statutes, section 120B.30. 

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

86.1 	Sec. 12. DEPARTMENT OF EDUCATION REPORT.
 86.2 	The Department of Education must submit a report to the education committees of 
86.3 	the legislature by January 15, 2009, analyzing the department's data collection procedures 
86.4 	under each of the department's major data reporting systems and recommend a streamlined, 
86.5 	Web-based system of reporting school district data. The report also must analyze existing 
86.6 	stand-alone school district reporting requirements and recommend the elimination of any 
86.7 	district reports that are duplicative of other data already collected by the department.

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

86.9 	Sec. 13. HEALTH, NUTRITION, AND PHYSICAL EDUCATION ADVISORY 
86.10 	COUNCIL.
 86.11 	The commissioner of education shall convene an advisory council that consists of 
86.12 	22 members. The council shall consist of two senators, including one member of the 
86.13 	minority caucus, appointed by the Subcommittee on Committees of the Committee on 
86.14 	Rules and Administration; two members of the house of representatives, one appointed by 
86.15 	the speaker and one appointed by the minority leader; the commissioner of health or the 
86.16 	commissioner's designee; the commissioner of education or the commissioner's designee; 
86.17 	up to 16 public members who have an interest in addressing childhood obesity, including 
86.18 	up to eight public members appointed by the speaker of the house of representatives and up 
86.19 	to eight public members appointed by the majority leader of the senate. The membership 
86.20 	of the council shall include a curriculum specialist from the Department of Education; a 
86.21 	representative of the Minnesota Association of Health, Physical Education, Recreation, 
86.22 	and Dance; a representative of the Minnesota Board of Teaching; a representative of the 
86.23 	Minnesota School Boards Association; a representative of the School Nurse Organization; 
86.24 	a representative of the American Heart Association; an elementary school principal; 
86.25 	a secondary school principal; a representative of the Minnesota School Nutrition 
86.26 	Association; a nutritionist; a health educator who sits on Quality Teaching Network; 
86.27 	a representative of the Obesity Prevention Center; a representative of the Minnesota 
86.28 	Association of Family and Consumer Sciences; a representative of the Minnesota Medical 
86.29 	Association; and a physical fitness educator who sits on the Quality Teaching Network. 
86.30 	The advisory council shall develop recommendations for statewide standards for 
86.31 	health, nutrition, and physical education and increased physical activity during the 
86.32 	school day based on 2007-2008 Health Care Access Commission's recommendations on 
86.33 	childhood obesity. The goal of these standards must be to promote the understanding 
86.34 	of the health habits that will serve students throughout their lifetimes, by promoting 
86.35 	health and avoiding health risks, encouraging increased activity and cardiovascular 
87.1 	health, and supporting improved nutrition. The commissioner of education shall report 
87.2 	the recommendations to the legislature by December 15, 2008. The advisory council is 
87.3 	governed by Minnesota Statutes, section 15.059.

87.4 	Sec. 14. TASK FORCE ON TEACHER LICENSURE AND CERTIFICATION.
 87.5 		Subdivision 1.Creation and duties. (a) The commissioner of education shall 
87.6 	develop a task force in collaboration with Dakota and Ojibwe language immersion 
87.7 	programs and the Minnesota Indian Affairs Council to identify barriers to teacher 
87.8 	licensing, teacher certification, fluency certification, and licensing for prekindergarten 
87.9 	through grade 12 Dakota and Ojibwe language immersion programs. The task force shall 
87.10 	focus on changes needed in licensure to ensure the continuation and development of 
87.11 	Dakota and Ojibwe language immersion programs in Bureau of Indian Affairs programs, 
87.12 	charter schools, private schools, nonprofit organizations, and public schools in Minnesota.
87.13 	(b) Minnesota recognizes the responsibility of the Minnesota tribes to oversee the 
87.14 	revitalization of Dakota and Ojibwe language in the state and shall receive tribal direction 
87.15 	on issues of teacher certification, fluency certification, and licensing of Dakota and Ojibwe 
87.16 	language immersion programs by the Departments of Human Services and Education. 
87.17 	The task force shall also identify strategies to ensure existing funding sources will be used 
87.18 	for Dakota and Ojibwe language immersion programs.
87.19 		Subd. 2.Report. The task force shall report to the Minnesota Indian Affairs 
87.20 	Council and the legislature by December 15, 2008, on changes needed for licensing and 
87.21 	certification specified in subdivision 1. The task force shall make recommendations to the 
87.22 	legislature on changes required in law to obtain the licensing and certification specified in 
87.23 	subdivision 1.

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

87.25 	ARTICLE 6
87.26 	SELF-SUFFICIENCY AND LIFELONG LEARNING

87.27 	Section 1. [4.046] OFFICE OF EARLY LEARNING.
87.28 	(a) An Office of Early Learning is established to coordinate a high quality early 
87.29 	childhood system in Minnesota to make such programs more effective, and to improve the 
87.30 	educational outcomes of all children. The governor must appoint, with the advice and 
87.31 	consent of the senate, a director who is a recognized expert in the field of early childhood 
87.32 	care and education who will facilitate communication and coordinate prekindergarten and 
88.1 	child care programs under the administration of the Departments of Education, Health, 
88.2 	and Human Services.
88.3 	(b) The director of the Office of Early Learning must coordinate Departments of 
88.4 	Education, Health, and Human Services staff efforts to:
88.5 	(1) consolidate and coordinate resources and public funding streams for early 
88.6 	education and child care, and ensure the accountability and coordinated development of 
88.7 	all early education and child care services to children from birth to age five;
88.8 	(2) work with the Departments of Education, Health, and Human Services and 
88.9 	Minnesota Early Learning Foundation (MELF) to create common standards for quality 
88.10 	early childhood programming and rules for teacher training and certification;
88.11 	(3) create a seamless transition from early childhood programs to kindergarten;
88.12 	(4) encourage family choice by ensuring a mixed system of high quality public and 
88.13 	private programs, with local points of entry, staffed by well-qualified professionals;
88.14 	(5) ensure parents a decisive role in the planning, operation, and evaluation of 
88.15 	programs that aid families in the care of children;
88.16 	(6) provide consumer education and accessibility to early education and child care 
88.17 	resources;
88.18 	(7) advance the quality of early education and child care programs in order to 
88.19 	support the healthy development of children and preparation for their success in school;
88.20 	(8) develop a seamless service delivery system of early education and child care 
88.21 	programs administered by local, state, and federal agencies, with local points of entry;
88.22 	(9) develop and manage an effective data collection system to support the necessary 
88.23 	functions of a coordinated system of early education and child care in order to enable 
88.24 	accurate evaluation of its impact;
88.25 	(10) respect and be sensitive to family values and cultural heritage; and
88.26 	(11) establish the administrative framework for and promote the development of 
88.27 	early education and child care services in order to provide that such services, staffed 
88.28 	by well-qualified professionals, are available in every community for all families that 
88.29 	express a need for them.
88.30 	(c) The director of the Office of Early Learning must report to the legislative 
88.31 	committees with jurisdiction over the early childhood education and child care programs 
88.32 	by February 1 of each year on the status of the work required under paragraph (b) and 
88.33 	any statutory changes necessary to improve quality and increase access. The director 
88.34 	also must present to these same legislative committees by February 1, 2009, a detailed 
88.35 	plan, with an implementation timeline, to colocate state early childhood education and 
88.36 	child care assistance programs and services.

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

89.2 	Sec. 2. [120A.015] SCHOOL READINESS GOAL.
89.3 	The legislature seeks to ensure that 75 percent of Minnesota children are 
89.4 	school-ready by 2012.

89.5 	Sec. 3. Minnesota Statutes 2006, section 120A.05, subdivision 10a, is amended to read:
89.6 		Subd. 10a.Kindergarten. (a) "Kindergarten" means a program designed for pupils 
89.7 	five years of age on September 1 of the calendar year in which the school year commences 
89.8 	that prepares pupils to enter first grade the following school year. A program designed for 
89.9 	pupils younger than five years of age on September 1 of the calendar year in which the 
89.10 	school year commences that prepares pupils to enter kindergarten the following school 
89.11 	year is a prekindergarten program.
89.12 	(b) "Full-day kindergarten" means an academic program that prepares pupils to enter 
89.13 	first grade the following school year, provides a minimum of 850 hours in a school year, 
89.14 	includes curriculum and instruction under section 120B.11, and aligns with academic 
89.15 	standards under section 120B.021, subdivision 1. Revenues and expenditures for full-day 
89.16 	kindergarten must be accounted for in the school district's general fund. Learning activities 
89.17 	provided as a part of a community education program are not kindergarten, and must be 
89.18 	accounted for in the school district's community service fund.

89.19 	Sec. 4. Minnesota Statutes 2006, section 123B.36, subdivision 1, is amended to read:
89.20 		Subdivision 1.School boards may require fees. (a) For purposes of this 
89.21 	subdivision, "home school" means a home school as defined in sections 120A.22 and 
89.22 	120A.24 with five or fewer students receiving instruction. 
89.23 	(b) A school board is authorized to require payment of fees in the following areas:
89.24 	(1) in any program where the resultant product, in excess of minimum requirements 
89.25 	and at the pupil's option, becomes the personal property of the pupil;
89.26 	(2) admission fees or charges for extracurricular activities, where attendance 
89.27 	is optional and where the admission fees or charges a student must pay to attend or 
89.28 	participate in an extracurricular activity is the same for all students, regardless of whether 
89.29 	the student is enrolled in a public or a home school;
89.30 	(3) a security deposit for the return of materials, supplies, or equipment;
89.31 	(4) personal physical education and athletic equipment and apparel, although any 
89.32 	pupil may personally provide it if it meets reasonable requirements and standards relating 
89.33 	to health and safety established by the board;
90.1 	(5) items of personal use or products that a student has an option to purchase such as 
90.2 	student publications, class rings, annuals, and graduation announcements;
90.3 	(6) fees specifically permitted by any other statute, including but not limited to 
90.4 	section 171.05, subdivision 2; provided (i) driver education fees do not exceed the actual 
90.5 	cost to the school and school district of providing driver education, and (ii) the driver 
90.6 	education courses are open to enrollment to persons between the ages of 15 and 18 who 
90.7 	reside or attend school in the school district; 
90.8 	(7) field trips considered supplementary to a district educational program;
90.9 	(8) any authorized voluntary student health and accident benefit plan;
90.10 	(9) for the use of musical instruments owned or rented by the district, a reasonable 
90.11 	rental fee not to exceed either the rental cost to the district or the annual depreciation plus 
90.12 	the actual annual maintenance cost for each instrument;
90.13 	(10) transportation of pupils to and from extracurricular activities conducted at 
90.14 	locations other than school, where attendance is optional;
90.15 	(11) transportation to and from school of pupils living within two miles from school 
90.16 	and all other transportation services not required by law. If a district charges fees for 
90.17 	transportation of pupils, it must establish guidelines for that transportation to ensure that 
90.18 	no pupil is denied transportation solely because of inability to pay;
90.19 	(12) motorcycle classroom education courses conducted outside of regular school 
90.20 	hours; provided the charge must not exceed the actual cost of these courses to the school 
90.21 	district;
90.22 	(13) transportation to and from postsecondary institutions for pupils enrolled under 
90.23 	the postsecondary enrollment options program under section 123B.88, subdivision 22. 
90.24 	Fees collected for this service must be reasonable and must be used to reduce the cost 
90.25 	of operating the route. Families who qualify for mileage reimbursement under section 
90.26 	124D.09, subdivision 22, may use their state mileage reimbursement to pay this fee. If 
90.27 	no fee is charged, districts must allocate costs based on the number of pupils riding the 
90.28 	route.; and
90.29 	(14) the additional cost of an optional full-day kindergarten program in a district or a 
90.30 	charter school that also provides a half-time kindergarten option, except that no fee shall 
90.31 	be charged for providing a child with a disability a free and appropriate public education 
90.32 	in accordance with the child's individualized education program according to section 
90.33 	125A.03. If a district charges fees for a full-day kindergarten program, it must establish a 
90.34 	reasonable sliding fee scale but it shall waive the fee for a participant unable to pay.

90.35 	Sec. 5. Minnesota Statutes 2006, section 123B.37, subdivision 1, is amended to read:
91.1 		Subdivision 1.Boards shall not charge certain fees. (a) A board is not authorized 
91.2 	to charge fees in the following areas:
91.3 	(1) textbooks, workbooks, art materials, laboratory supplies, towels;
91.4 	(2) supplies necessary for participation in any instructional course except as 
91.5 	authorized in sections 123B.36 and 123B.38; 
91.6 	(3) field trips that are required as a part of a basic education program or course;
91.7 	(4) graduation caps, gowns, any specific form of dress necessary for any educational 
91.8 	program, and diplomas;
91.9 	(5) instructional costs for necessary school personnel employed in any course or 
91.10 	educational program required for graduation except as authorized in section 123B.36, 
91.11 	subdivision 1, clause (14);
91.12 	(6) library books required to be utilized for any educational course or program;
91.13 	(7) admission fees, dues, or fees for any activity the pupil is required to attend;
91.14 	(8) any admission or examination cost for any required educational course or 
91.15 	program;
91.16 	(9) locker rentals;
91.17 	(10) transportation to and from school of pupils living two miles or more from 
91.18 	school.
91.19 	(b) Notwithstanding paragraph (a), clauses (1) and (6), a board may charge fees 
91.20 	for textbooks, workbooks, and library books, lost or destroyed by students. The board 
91.21 	must annually notify parents or guardians and students about its policy to charge a fee 
91.22 	under this paragraph.

91.23 	Sec. 6. [124D.141] STATE ADVISORY BOARD ON SCHOOL READINESS.
91.24 		Subdivision 1.Establishment. A 12-member State Advisory Board on School 
91.25 	Readiness is established. The director of the Office of Early Learning must start the 
91.26 	advisory board and assist in developing a coordinated, efficient, and cost-effective system 
91.27 	for delivering early childhood programs throughout Minnesota that focus on early care 
91.28 	and education, health care, and family support.
91.29 		Subd. 2.Board members; terms. (a) The advisory board includes the following 
91.30 	12 members:
91.31 	(1) the commissioner of employment and economic development or the 
91.32 	commissioner's designee;
91.33 	(2) the commissioner of health or the commissioner's designee;
91.34 	(3) the commissioner of education or the commissioner's designee;
91.35 	(4) the commissioner of human services or the commissioner's designee;
92.1 	(5) four public members appointed jointly by the majority and minority leaders in 
92.2 	the house and senate who are recognized experts in early care and education; 
92.3 	(6) two public members appointed jointly by the majority and minority leaders in the 
92.4 	house and senate who are community or business leaders; and 
92.5 	(7) two parents with at least one child under the age of six appointed by the governor.
92.6 	(b) Members appointed by the majority and minority leaders in the house and senate 
92.7 	serve staggered three-year terms. Board members must nominate and elect a chair and 
92.8 	other officers from among the public members. Members initially appointed to the board 
92.9 	shall assign themselves by lot to terms of one, two, or three years. The chair must notify 
92.10 	the governor on the assignment of these terms. The board shall meet regularly at the times 
92.11 	and places the board determines. Meetings shall be called by the chair or at the written 
92.12 	request of any three members. Members' terms, compensation, removal, and vacancies 
92.13 	are governed by section 15.0575. Notwithstanding section 15.059, board members must 
92.14 	not be paid a per diem or reimbursed for any expenses associated with their membership 
92.15 	on the board.
92.16 	(c) The public members of the board must represent the communities of color.
92.17 		Subd. 3.Duties. The board shall recommend to the governor and the legislature:
92.18 	(1) the most effective method to improve the coordination and delivery of early care 
92.19 	and education services that integrates child care, preschools, and family support services 
92.20 	and programs;
92.21 	(2) a multiyear plan for effectively and efficiently coordinating and integrating 
92.22 	state services for early care and education, improving service delivery and standards 
92.23 	of care, avoiding duplication and fragmentation of service, and enhancing public and 
92.24 	private investment;
92.25 	(3) methods for measuring the quality, quantity, and effectiveness of early care and 
92.26 	education programs throughout the state;
92.27 	(4) how to identify and measure school readiness indicators on a regular basis;
92.28 	(5) how to track, enhance, integrate, and coordinate federal, state, and local funds 
92.29 	allocated for early care and education and related family support services;
92.30 	(6) policy changes to improve children's ability to start school ready to learn; and
92.31 	(7) how to provide technical assistance to community efforts that promote school 
92.32 	readiness and encourage community organizations to collaborate in promoting school 
92.33 	readiness.
92.34 		Subd. 4.Board expiration. The State Advisory Board on School Readiness 
92.35 	expires January 1, 2013.

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

93.1 	Sec. 7. Minnesota Statutes 2006, section 124D.522, is amended to read:
93.2 	124D.522 ADULT BASIC EDUCATION SUPPLEMENTAL SERVICE 
93.3 	GRANTS.
93.4 	(a) The commissioner, in consultation with the policy review task force under 
93.5 	section 124D.521, may make grants to nonprofit organizations to provide services that 
93.6 	are not offered by a district adult basic education program or that are supplemental to 
93.7 	either the statewide adult basic education program, or a district's adult basic education 
93.8 	program. The commissioner may make grants for: staff development for adult basic 
93.9 	education teachers and administrators; training for volunteer tutors; training, services, and 
93.10 	materials for serving disabled students through adult basic education programs; statewide 
93.11 	promotion of adult basic education services and programs; development and dissemination 
93.12 	of instructional and administrative technology for adult basic education programs; 
93.13 	programs which primarily serve communities of color; adult basic education distance 
93.14 	learning projects, including television instruction programs; and other supplemental 
93.15 	services to support the mission of adult basic education and innovative delivery of adult 
93.16 	basic education services. 
93.17 	(b) The commissioner must establish eligibility criteria and grant application 
93.18 	procedures. Grants under this section must support services throughout the state, focus on 
93.19 	educational results for adult learners, and promote outcome-based achievement through 
93.20 	adult basic education programs. Beginning in fiscal year 2002, the commissioner may 
93.21 	make grants under this section from the state total adult basic education aid set aside for 
93.22 	supplemental service grants under section 124D.531. Up to one-fourth of the appropriation 
93.23 	for supplemental service grants must be used for grants for adult basic education programs 
93.24 	to encourage and support innovations in adult basic education instruction and service 
93.25 	delivery. A grant to a single organization cannot exceed $100,000 25 percent of the total 
93.26 	supplemental services aid. Nothing in this section prevents an approved adult basic 
93.27 	education program from using state or federal aid to purchase supplemental services. 

93.28 	Sec. 8. Minnesota Statutes 2007 Supplement, section 124D.531, subdivision 1, is 
93.29 	amended to read:
93.30 		Subdivision 1.State total adult basic education aid. (a) The state total adult basic 
93.31 	education aid for fiscal year 2005 is $36,509,000. The state total adult basic education 
93.32 	aid for fiscal year 2006  equals $36,587,000 plus any amount that is not paid for during 
93.33 	the previous fiscal year, as a result of adjustments under subdivision 4, paragraph (a), or 
93.34 	section 124D.52, subdivision 3. The state total adult basic education aid for fiscal year 
93.35 	2007 equals $37,673,000 plus any amount that is not paid for during the previous fiscal 
94.1 	year, as a result of adjustments under subdivision 4, paragraph (a), or section 124D.52, 
94.2 	subdivision 3. The state total adult basic education aid for fiscal year 2008 equals 
94.3 	$40,650,000, plus any amount that is not paid during the previous fiscal year as a result of 
94.4 	adjustments under subdivision 4, paragraph (a), or section 124D.52, subdivision 3. The 
94.5 	state total adult basic education aid for later fiscal years equals:
94.6 	(1) the state total adult basic education aid for the preceding fiscal year plus any 
94.7 	amount that is not paid for during the previous fiscal year, as a result of adjustments under 
94.8 	subdivision 4, paragraph (a), or section 124D.52, subdivision 3; times
94.9 	(2) the lesser of:
94.10 	(i) 1.03; or
94.11 	(ii) the greater of 1.00 or the ratio of the state total contact hours in the first prior 
94.12 	program year to the state total contact hours in the second prior program year the average 
94.13 	growth in state total contact hours over the prior 10 program years.
94.14 	Beginning in fiscal year 2002, two percent of the state total adult basic education 
94.15 	aid must be set aside for adult basic education supplemental service grants under section 
94.16 	124D.522.
94.17 	(b) The state total adult basic education aid, excluding basic population aid, equals 
94.18 	the difference between the amount computed in paragraph (a), and the state total basic 
94.19 	population aid under subdivision 2.

94.20 	Sec. 9. Minnesota Statutes 2006, section 124D.55, is amended to read:
94.21 	124D.55 GENERAL EDUCATION DEVELOPMENT (GED) TEST FEES.
94.22 	The commissioner shall pay 60 percent of the fee that is charged to an eligible 
94.23 	individual for the full battery of a general education development (GED) test, but not 
94.24 	more than $20$40 for an eligible individual.

94.25 	Sec. 10. Minnesota Statutes 2007 Supplement, section 126C.05, subdivision 1, is 
94.26 	amended to read:
94.27 		Subdivision 1.Pupil unit. Pupil units for each Minnesota resident pupil under the 
94.28 	age of 21 or who meets the requirements of section 120A.20, subdivision 1, paragraph (c), 
94.29 	in average daily membership enrolled in the district of residence, in another district under 
94.30 	sections 123A.05 to 123A.08, 124D.03, 124D.08, or 124D.68; in a charter school under 
94.31 	section 124D.10; or for whom the resident district pays tuition under section 123A.18, 
94.32 	123A.22, 123A.30, 123A.32, 123A.44, 123A.488, 123B.88, subdivision 4, 124D.04, 
94.33 	124D.05, 125A.03 to 125A.24, 125A.51, or 125A.65, shall be counted according to this 
94.34 	subdivision. 
95.1 	(a) A prekindergarten pupil with a disability who is enrolled in a program approved 
95.2 	by the commissioner and has an individual education plan is counted as the ratio of the 
95.3 	number of hours of assessment and education service to 825 times 1.25 with a minimum 
95.4 	average daily membership of 0.28, but not more than 1.25 pupil units. 
95.5 	(b) A prekindergarten pupil who is assessed but determined not to be disabled is 
95.6 	counted as the ratio of the number of hours of assessment service to 825 times 1.25. 
95.7 	(c) A kindergarten pupil with a disability who is enrolled in a program approved 
95.8 	by the commissioner is counted as the ratio of the number of hours of assessment and 
95.9 	education services required in the fiscal year by the pupil's individual education program 
95.10 	plan to 875, but not more than one.
95.11 	(d) A kindergarten pupil who is not included in paragraph (c) is counted as .612 1.0
95.12 	pupil units.
95.13 	(e) A pupil who is in any of grades 1 to 3 is counted as 1.115 pupil units for fiscal 
95.14 	year 2000 and thereafter. 
95.15 	(f) A pupil who is any of grades 4 to 6 is counted as 1.06 pupil units for fiscal 
95.16 	year 1995 and thereafter. 
95.17 	(g) A pupil who is in any of grades 7 to 12 is counted as 1.3 pupil units.
95.18 	(h) A pupil who is in the postsecondary enrollment options program is counted 
95.19 	as 1.3 pupil units.

95.20 	Sec. 11. [126C.127] ALL-DAY KINDERGARTEN RESERVE.
95.21 		Subdivision 1.Revenue. Of a district's general education revenue for fiscal 
95.22 	year 2009 and later, each school district shall reserve an amount equal to the formula 
95.23 	allowance multiplied by the sum of the adjusted marginal cost pupil units in average daily 
95.24 	membership, according to section 126C.05, subdivision 5, in kindergarten times .388.
95.25 		Subd. 2.Revenue use. Revenue under this section must be used to provide all-day 
95.26 	kindergarten.
95.27 		Subd. 3.Alternate revenue use. If the board of a district determines that the district 
95.28 	is already providing all-day kindergarten or if the board chooses to reallocate the revenue 
95.29 	under subdivision 1, a district may use the revenue to provide early childhood education 
95.30 	programs for children aged three or four.

95.31 	Sec. 12. SCHOOL READINESS ASSESSMENTS AND KINDERGARTEN 
95.32 	TRANSITION STRATEGIES.
 96.1 		Subdivision 1.Establishment. In order to increase the capacity of school districts to 
96.2 	improve the performance of children at risk for not being fully prepared for kindergarten, 
96.3 	school readiness assessment and kindergarten transition strategy grants are established.
96.4 		Subd. 2.Technical assistance.  (a) The commissioner of education must provide 
96.5 	resources and technical assistance to enable a participating school district to offer 
96.6 	comprehensive and developmentally appropriate assessments to entering kindergartners 
96.7 	or, where applicable, children in prekindergarten programs and to develop and implement 
96.8 	kindergarten transition strategies.
96.9 	(b) A school district's assessment tool must be research-based and must assist with 
96.10 	identifying risk and informing instructional improvement. A participating school district 
96.11 	must coordinate with community and school-based early childhood programs.
96.12 	(c) An effective kindergarten transition strategy may include:
96.13 	(1) transition plans for children entering kindergarten;
96.14 	(2) a transition planning team composed of representatives from early care and 
96.15 	education providers, elementary school staff including kindergarten teachers, parents, 
96.16 	and community members;
96.17 	(3) information and education for parents, program providers, and educators on:
96.18 	(i) comprehensive child development;
96.19 	(ii) the skills and knowledge incoming kindergartners should demonstrate; and
96.20 	(iii) related community resources;
96.21 	(4) building community awareness about the importance of children's school 
96.22 	readiness; and
96.23 	(5) fostering collaboration among child care, Head Start, early childhood family 
96.24 	education, school readiness, family, friends and neighbors, and other early childhood 
96.25 	programs and elementary school providers.
96.26 		Subd. 3.Application. A school district must submit its application to the 
96.27 	commissioner in the form and manner required by the commissioner. The commissioner 
96.28 	must select school districts to receive grants giving priority to districts with high poverty 
96.29 	rates. To the extent practical, the selected districts must be located throughout the state.
96.30 		Subd. 4.Annual report. A school district that receives a grant must submit an 
96.31 	annual report to the commissioner in the form and manner required by the commissioner. 
96.32 	The report must include a description of the assessment tool, process, and results.

96.33 	Sec. 13. APPROPRIATION.
 97.1 		Subdivision 1.Commissioner of education. The sums indicated in this section are 
97.2 	appropriated from the general fund to the commissioner of education for the fiscal years 
97.3 	designated.
97.4 		Subd. 2.Parent-child home program. For a grant to the Jewish Family and 
97.5 	Children's Service for a research-based early childhood literacy and school readiness 
97.6 	program:

97.7		$
	252,000
	.....
	2009

97.8 		Subd. 3.School readiness assessments and kindergarten transition strategies.
 97.9 	For school readiness assessments and kindergarten transition strategies:

97.10		$
	.......
	.....
	2009

97.11 	Of this amount, $....... is for program administration. This appropriation must be 
97.12 	added to the base budget.