1.1 	A bill for an act
1.2 	relating to education; providing for prekindergarten through grade 12 education, 
1.3 	including general education, education excellence, and state agencies; 
1.4 	appropriating money;amending Minnesota Statutes 2006, sections 120B.31, as 
1.5 	amended; 120B.35, as amended; 120B.36, as amended; 120B.362; 121A.19; 
1.6 	122A.21; 122A.415, by adding subdivisions; 122A.72, by adding a subdivision; 
1.7 	123B.62; 124D.04, subdivisions 6, 8, 9; 124D.05, by adding a subdivision; 
1.8 	124D.09, subdivision 5; 124D.095, subdivision 10; 124D.118, subdivision 
1.9 	4; 125A.76, by adding a subdivision; 126C.10, subdivisions 1, 31, 35, 36, 
1.10 	by adding a subdivision; 126C.17, subdivision 9; 126C.40, subdivision 1; 
1.11 	126C.45; 126C.51; 126C.52, subdivision 2, by adding a subdivision; 126C.53; 
1.12 	126C.55; 127A.45, subdivision 16; Minnesota Statutes 2007 Supplement, 
1.13 	sections 120B.30, subdivision 1a; 123B.143, subdivision 1; 123B.54; 124D.095, 
1.14 	subdivisions 3, 4, 7; 124D.531, subdivision 1; 126C.10, subdivision 34; 127A.49, 
1.15 	subdivisions 2, 3; Laws 2007, chapter 146, article 1, section 24, subdivisions 2, 
1.16 	3, 4, 5, 6, 7, 8; article 2, section 46, subdivisions 2, 3, 4, 6, 9, 11, 13, 19, 20; 
1.17 	article 3, sections 23, subdivision 2; 24, subdivisions 3, 4, 9; article 4, section 16, 
1.18 	subdivisions 2, 3, 6, 8; article 5, sections 11, subdivision 1; 13, subdivisions 2, 3, 
1.19 	4; article 7, section 4; article 9, section 17, subdivisions 2, 3, 4, 8, 9, 13; Laws 
1.20 	2007, First Special Session chapter 2, article 1, section 11, subdivisions 1, 2, 6; 
1.21 	proposing coding for new law in Minnesota Statutes, chapters 1; 120B; 123B; 
1.22 	124D; repealing Minnesota Statutes 2006, sections 126C.10, subdivisions 35, 
1.23 	36; 126C.21, subdivision 1; 127A.45, subdivision 7a; Minnesota Statutes 2007 
1.24 	Supplement, section 126C.10, subdivision 34; Laws 2007, First Special Session 
1.25 	chapter 2, article 1, section 11, subdivisions 3, 4.
1.26 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.27 	ARTICLE 1
1.28 	GENERAL EDUCATION

1.29 	Section 1. Minnesota Statutes 2007 Supplement, section 123B.143, subdivision 1, 
1.30 	is amended to read:
1.31 		Subdivision 1.Contract; duties. All districts maintaining a classified secondary 
1.32 	school must employ a superintendent who shall be an ex officio nonvoting member of the 
2.1 	school board. The authority for selection and employment of a superintendent must be 
2.2 	vested in the board in all cases. An individual employed by a board as a superintendent 
2.3 	shall have an initial employment contract for a period of time no longer than three years 
2.4 	from the date of employment. Any subsequent employment contract must not exceed a 
2.5 	period of three years. A board, at its discretion, may or may not renew an employment 
2.6 	contract. A board must not, by action or inaction, extend the duration of an existing 
2.7 	employment contract. Beginning 365 days prior to the expiration date of an existing 
2.8 	employment contract, a board may negotiate and enter into a subsequent employment 
2.9 	contract to take effect upon the expiration of the existing contract. A subsequent contract 
2.10 	must be contingent upon the employee completing the terms of an existing contract. If a 
2.11 	contract between a board and a superintendent is terminated prior to the date specified in 
2.12 	the contract, the board may not enter into another superintendent contract with that same 
2.13 	individual that has a term that extends beyond the date specified in the terminated contract. 
2.14 	A board may terminate a superintendent during the term of an employment contract for any 
2.15 	of the grounds specified in section 122A.40, subdivision 9 or 13. A superintendent shall 
2.16 	not rely upon an employment contract with a board to assert any other continuing contract 
2.17 	rights in the position of superintendent under section 122A.40. Notwithstanding the 
2.18 	provisions of sections 122A.40, subdivision 10 or 11, 123A.32, 123A.75, or any other law 
2.19 	to the contrary, no individual shall have a right to employment as a superintendent based 
2.20 	on order of employment in any district. If two or more districts enter into an agreement for 
2.21 	the purchase or sharing of the services of a superintendent, the contracting districts have 
2.22 	the absolute right to select one of the individuals employed to serve as superintendent 
2.23 	in one of the contracting districts and no individual has a right to employment as the 
2.24 	superintendent to provide all or part of the services based on order of employment in a 
2.25 	contracting district. The superintendent of a district shall perform the following: 
2.26 	(1) visit and supervise the schools in the district, report and make recommendations 
2.27 	about their condition when advisable or on request by the board;
2.28 	(2) recommend to the board employment and dismissal of teachers;
2.29 	(3) superintend school grading practices and examinations for promotions;
2.30 	(4) make reports required by the commissioner;
2.31 	(5) by January August  10, 2009, and each year thereafter, submit an annual report 
2.32 	to the commissioner in a manner prescribed by the commissioner, in consultation with 
2.33 	school districts, identifying the expenditures that the district requires to ensure an 80 
2.34 	percent student passage rate on the MCA-IIs taken in the eighth grade, identifying the 
2.35 	highest student passage rate the district expects it will be able to attain on the MCA-IIs
3.1 	GRAD by grade 12, and the amount of expenditures that the district requires to attain the 
3.2 	targeted student passage rate; and
3.3 	(6) perform other duties prescribed by the board.

3.4 	Sec. 2. Minnesota Statutes 2006, section 124D.04, subdivision 6, is amended to read:
3.5 		Subd. 6.Tuition payments. (a) In each odd-numbered year, before March 1, the 
3.6 	commissioner must agree to rates of tuition for Minnesota elementary and secondary 
3.7 	pupils attending in other states for the next two fiscal years when the other state agrees to 
3.8 	negotiate tuition rates. The commissioner must negotiate equal, reciprocal rates with the 
3.9 	designated authority in each state for pupils who reside in an adjoining state and enroll in 
3.10 	a Minnesota district. The rates must be at least equal to the tuition specified in section 
3.11 	124D.05, subdivision 1. If the other state does not agree to negotiate a general tuition rate, 
3.12 	a Minnesota school district may negotiate a tuition rate with the school district in the other 
3.13 	state that sends a pupil to or receives a pupil from the Minnesota school district. The 
3.14 	tuition rate for a pupil with a disability must be equal to the actual cost of instruction and 
3.15 	services provided. The resident district of a Minnesota pupil attending in another state 
3.16 	under this section must pay the amount of tuition agreed upon in this section to the district 
3.17 	of attendance, prorated on the basis of the proportion of the school year attended. 
3.18 	(b) Notwithstanding paragraph (a) and subdivision 9, if an agreement is reached 
3.19 	between the state of Minnesota and an adjoining state pursuant to section 124D.041, 
3.20 	the provisions of section 124D.041 and the agreement shall apply to all enrollment 
3.21 	transfers between Minnesota and the adjoining state, and provisions of paragraph (a) 
3.22 	and subdivision 9 shall not apply.

3.23 	Sec. 3. Minnesota Statutes 2006, section 124D.04, subdivision 8, is amended to read:
3.24 		Subd. 8.Effective if reciprocal. This section is effective with respect to South 
3.25 	Dakota upon enactment of provisions by South Dakota that the commissioner determines 
3.26 	are essentially similar to the provisions for Minnesota pupils in this section. This section 
3.27 	is effective with respect to any other bordering state upon enactment of provisions by the 
3.28 	bordering state that the commissioner determines are essentially similar to the provisions 
3.29 	for Minnesota pupils in this section.

3.30 	Sec. 4. Minnesota Statutes 2006, section 124D.04, subdivision 9, is amended to read:
3.31 		Subd. 9.Appeal to the commissioner. If a Minnesota school district cannot agree 
3.32 	with an adjoining state on a tuition rate for a Minnesota student attending school in that 
3.33 	state and that state has met the requirements in subdivision 8, then the student's parent or 
4.1 	guardian may request that the commissioner agree on set a tuition rate for the student. The 
4.2 	Minnesota district must pay the amount of tuition the commissioner agrees upon sets.

4.3 	Sec. 5. [124D.041] RECIPROCITY WITH ADJOINING STATES.
4.4 		Subdivision 1.Agreements. (a) The commissioner may enter into an agreement 
4.5 	with the designated authority from an adjoining state to establish an enrollment options 
4.6 	program between Minnesota and the adjoining state. Any agreement entered into pursuant 
4.7 	to this section must specify the following:
4.8 	(1) for students who are not residents of Minnesota, the enrollment options program 
4.9 	applies only to a student whose resident school district borders Minnesota;
4.10 	(2) the commissioner must negotiate equal, reciprocal rates with the designated 
4.11 	authority from the adjoining state;
4.12 	(3) if the adjoining state sends more students to Minnesota than Minnesota sends to 
4.13 	the adjoining state, the adjoining state must pay the state of Minnesota the rate agreed 
4.14 	upon under clause (2) for the excess number of students sent to Minnesota;
4.15 	(4) if Minnesota sends more students to the adjoining state than the adjoining state 
4.16 	sends to Minnesota, the state of Minnesota will pay the adjoining state the rate agreed 
4.17 	upon under clause (2) for the excess number of students sent to the adjoining state;
4.18 	(5) the application procedures for the enrollment options program between 
4.19 	Minnesota and the adjoining state;
4.20 	(6) the reasons for which an application for the enrollment options program between 
4.21 	Minnesota and the adjoining state may be denied; and
4.22 	(7) that a Minnesota school district is not responsible for transportation for any 
4.23 	resident student attending school in an adjoining state under the provisions of this section. 
4.24 	A Minnesota school district may, at its discretion, provide transportation services for 
4.25 	such a student.
4.26 	(b) Any agreement entered into pursuant to this section may specify additional terms 
4.27 	relating to any student in need of special education and related services pursuant to chapter 
4.28 	125A.  Any additional terms must apply equally to both states.
4.29 		Subd. 2.Pupil accounting. (a) Any student from an adjoining state enrolled in 
4.30 	Minnesota pursuant to this section is included in the receiving school district's average 
4.31 	daily membership and pupil units according to section 126C.05 as if the student were 
4.32 	a resident of another Minnesota school district attending the receiving school district 
4.33 	under section 124D.03.
4.34 	(b) Any Minnesota resident student enrolled in an adjoining state pursuant to this 
4.35 	section is included in the resident school district's average daily membership and pupil 
5.1 	units according to section 126C.05 as if the student were a resident of the district attending 
5.2 	another Minnesota school district under section 124D.03.
5.3 		Subd. 3.Procedures. (a) The Department of Education must establish procedures 
5.4 	relating to the application process, the collection or payment of funds under the provisions 
5.5 	of any agreement established pursuant to this section, and the collection of data necessary 
5.6 	to implement any agreement established pursuant to this section.
5.7 	(b) Notwithstanding sections 124D.04 and 124D.05, if an agreement is established 
5.8 	between Minnesota and an adjoining state pursuant to this section, the provisions of this 
5.9 	section and the agreement shall apply to all enrollment transfers between Minnesota and 
5.10 	the adjoining state, and provisions of sections 124D.04 and 124D.05 to the contrary, 
5.11 	including provisions relating to tuition payments, shall not apply.
5.12 	(c) Notwithstanding paragraph (a), any payments to adjoining states under this 
5.13 	section shall be made according to section 127A.45, subdivision 16.
5.14 	(d) Notwithstanding paragraph (b), sections 124D.04, subdivision 6, paragraph (b), 
5.15 	and 124D.05, subdivision 2a, the provisions of this section and the agreement shall not 
5.16 	apply to:
5.17 	(1) enrollment transfers between Minnesota and a school district in an adjoining 
5.18 	state enrolling fewer than 150 pupils that is exempted from participation in the program 
5.19 	under the laws of the adjoining state; or 
5.20 	(2) enrollment transfers between Minnesota and a school district in an adjoining 
5.21 	state under a board agreement initiated in fiscal year 2009 to serve students in grade 
5.22 	levels discontinued by the resident district.

5.23 	Sec. 6. Minnesota Statutes 2006, section 124D.05, is amended by adding a subdivision 
5.24 	to read:
5.25 		Subd. 2a.Exception. Notwithstanding subdivisions 1 and 2, if an agreement 
5.26 	is reached between the state of Minnesota and an adjoining state pursuant to section 
5.27 	124D.041, the provisions of section 124D.041 and the agreement shall apply to all 
5.28 	enrollment transfers between Minnesota and the adjoining state, and provisions of 
5.29 	subdivisions 1 and 2 to the contrary, including provisions relating to tuition payments, 
5.30 	shall not apply.

5.31 	Sec. 7. Minnesota Statutes 2006, section 125A.76, is amended by adding a subdivision 
5.32 	to read:
5.33 		Subd. 4a.Adjustments for tuition reciprocity with adjoining states. (a) If an 
5.34 	agreement is reached between the state of Minnesota and an adjoining state pursuant to 
6.1 	section 124D.041 that requires a special education tuition payment from the state of 
6.2 	Minnesota to the adjoining state, the tuition payment shall be made from the special 
6.3 	education aid appropriation for that year, and the state total special education aid under 
6.4 	subdivision 4 shall be reduced by the amount of the payment.
6.5 	(b) If an agreement is reached between the state of Minnesota and an adjoining state 
6.6 	pursuant to section 124D.041 that requires a special education tuition payment from 
6.7 	an adjoining state to the state of Minnesota, the special education aid appropriation for 
6.8 	that year and the state total special education aid under subdivision 4  shall be increased 
6.9 	by the amount of the payment.
6.10 	(c) If an agreement is reached between the state of Minnesota and an adjoining state 
6.11 	pursuant to section 124D.041 that requires special education tuition payments to be made 
6.12 	between the two states and not between districts in the two states, the special education aid 
6.13 	for a Minnesota school district serving a student with a disability from the adjoining state 
6.14 	shall be calculated according to section 127A.47, subdivision 7, except that no reduction 
6.15 	shall be made in the special education aid paid to the resident district.

6.16 	Sec. 8. Minnesota Statutes 2006, section 126C.10, subdivision 1, is amended to read:
6.17 		Subdivision 1.General education revenue. (a) For fiscal year 2006 and later years 
6.18 	2008 and 2009, the general education revenue for each district equals the sum of the 
6.19 	district's basic revenue, extended time revenue, gifted and talented revenue, basic skills 
6.20 	revenue, training and experience revenue, secondary sparsity revenue, elementary sparsity 
6.21 	revenue, transportation sparsity revenue, total operating capital revenue, equity revenue, 
6.22 	alternative teacher compensation revenue under section 122A.415, and transition revenue.
6.23 	(b) For fiscal year 2010 and later, the general education revenue for each district 
6.24 	equals the sum of the district's basic revenue, extended time revenue, gifted and talented 
6.25 	revenue, basic skills revenue, training and experience revenue, secondary sparsity revenue, 
6.26 	elementary sparsity revenue, transportation sparsity revenue, total operating capital 
6.27 	revenue, equity revenue, and transition revenue.

6.28 	Sec. 9. Minnesota Statutes 2006, section 126C.10, subdivision 31, is amended to read:
6.29 		Subd. 31.Transition revenue. (a) A district's transition allowance equals the 
6.30 	greater of zero or the product of the ratio of the number of adjusted marginal cost pupil 
6.31 	units the district would have counted for fiscal year 2004 under Minnesota Statutes 2002 
6.32 	to the district's adjusted marginal cost pupil units for fiscal year 2004, times the difference 
6.33 	between: (1) the lesser of the district's general education revenue per adjusted marginal 
6.34 	cost pupil unit for fiscal year 2003 or the amount of general education revenue the district 
7.1 	would have received per adjusted marginal cost pupil unit for fiscal year 2004 according 
7.2 	to Minnesota Statutes 2002, and (2) the district's general education revenue for fiscal year 
7.3 	2004 excluding transition revenue divided by the number of adjusted marginal cost pupil 
7.4 	units the district would have counted for fiscal year 2004 under Minnesota Statutes 2002.
7.5 	(b) A district's transition revenue for fiscal year years 2006 and later through 2009
7.6 	equals the sum of the product of the district's transition allowance times the district's 
7.7 	adjusted marginal cost pupil units plus the district's transition for prekindergarten revenue 
7.8 	under subdivision 31a.
7.9 	(c) A district's transition revenue for fiscal year 2010 and later equals the sum of 
7.10 	the product of the district's transition allowance times the district's adjusted marginal cost 
7.11 	pupil units plus the district's transition for prekindergarten revenue under subdivision 31a 
7.12 	plus the district's transition for tuition reciprocity revenue under subdivision 31c.
7.13 	(d) Notwithstanding paragraph (b), for fiscal year 2010 and later, the transition 
7.14 	revenue for Independent School District No. 356, Lancaster, equals the sum of the product 
7.15 	of the district's transition allowance plus $361 times the district's adjusted marginal cost 
7.16 	pupil units plus the district's transition for prekindergarten revenue under subdivision 31a.

7.17 	Sec. 10. Minnesota Statutes 2006, section 126C.10, is amended by adding a 
7.18 	subdivision to read:
7.19 		Subd. 31c.Transition for tuition reciprocity revenue. For the first year that a 
7.20 	tuition reciprocity agreement with an adjoining state is in effect under section 124D.041 
7.21 	and later, a school district's transition for tuition reciprocity revenue equals the greater of 
7.22 	zero or the difference between the sum of the general education revenue and net tuition 
7.23 	revenue the district would have received for pupils enrolled under section 124D.041 for 
7.24 	the first year the agreement is in effect if the agreement had not been in effect, and the 
7.25 	sum of the district's general education revenue and net tuition revenue for the first year 
7.26 	the agreement is in effect.

7.27 	Sec. 11. Minnesota Statutes 2007 Supplement, section 126C.10, subdivision 34, 
7.28 	is amended to read:
7.29 		Subd. 34.Basic alternative teacher compensation aid. (a) For fiscal years 
7.30 	2007 and later 2008 and 2009, the basic alternative teacher compensation aid for a 
7.31 	school district with a plan approved under section 122A.414, subdivision 2b, equals 65
7.32 	73.1  percent of the alternative teacher compensation revenue under section 122A.415, 
7.33 	subdivision 1. The basic alternative teacher compensation aid for an intermediate school 
7.34 	district or charter school with a plan approved under section 122A.414, subdivisions 2a 
8.1 	and 2b, if the recipient is a charter school, equals $260 times the number of pupils enrolled 
8.2 	in the school on October 1 of the previous fiscal year, or on October 1 of the current fiscal 
8.3 	year for a charter school in the first year of operation, times the ratio of the sum of the 
8.4 	alternative teacher compensation aid and alternative teacher compensation levy for all 
8.5 	participating school districts to the maximum alternative teacher compensation revenue 
8.6 	for those districts under section 122A.415, subdivision 1.
8.7 	(b) Notwithstanding paragraphs (a) and (b) and section 122A.415, subdivision 1, 
8.8 	the state total basic alternative teacher compensation aid entitlement must not exceed 
8.9 	$75,636,000$48,060,000 for fiscal year 2007 2008, and later $52,407,000 for fiscal year 
8.10 	2009. The commissioner must limit the amount of alternative teacher compensation aid 
8.11 	approved under section 122A.415 so as not to exceed these limits.

8.12 	Sec. 12. Minnesota Statutes 2006, section 126C.10, subdivision 35, is amended to read:
8.13 		Subd. 35.Alternative teacher compensation levy. For fiscal year 2007 and later
8.14 	years 2008 and 2009, the alternative teacher compensation levy for a district receiving 
8.15 	basic alternative teacher compensation aid equals the product of (1) the difference between 
8.16 	the district's alternative teacher compensation revenue and the district's basic alternative 
8.17 	teacher compensation aid times (2) the lesser of one or the ratio of the district's adjusted 
8.18 	net tax capacity per adjusted pupil unit to $5,913.

8.19 	Sec. 13. Minnesota Statutes 2006, section 126C.10, subdivision 36, is amended to read:
8.20 		Subd. 36.Alternative teacher compensation aid. (a) For fiscal year 2007 and later
8.21 	years 2008 and 2009, a district's alternative teacher compensation equalization aid equals 
8.22 	the district's alternative teacher compensation revenue minus the district's basic alternative 
8.23 	teacher compensation aid minus the district's alternative teacher compensation levy. If a 
8.24 	district does not levy the entire amount permitted, the alternative teacher compensation 
8.25 	equalization aid must be reduced in proportion to the actual amount levied.
8.26 	(b) A district's alternative teacher compensation aid equals the sum of the 
8.27 	district's basic alternative teacher compensation aid and the district's alternative teacher 
8.28 	compensation equalization aid.

8.29 	Sec. 14. Minnesota Statutes 2006, section 126C.17, subdivision 9, is amended to read:
8.30 		Subd. 9.Referendum revenue. (a) The revenue authorized by section 126C.10, 
8.31 	subdivision 1, may be increased in the amount approved by the voters of the district at a 
8.32 	referendum called for the purpose. The referendum may be called by the board or shall be 
8.33 	called by the board upon written petition of qualified voters of the district. The referendum 
9.1 	must be conducted one or two calendar years before the increased levy authority, if 
9.2 	approved, first becomes payable. Only one election to approve an increase may be held 
9.3 	in a calendar year. Unless the referendum is conducted by mail under paragraph (g), the 
9.4 	referendum must be held on the first Tuesday after the first Monday in November. The 
9.5 	ballot must state the maximum amount of the increased revenue per resident marginal cost 
9.6 	pupil unit. The ballot may state a schedule, determined by the board, of increased revenue 
9.7 	per resident marginal cost pupil unit that differs from year to year over the number of 
9.8 	years for which the increased revenue is authorized or may state that the amount shall 
9.9 	increase annually by the rate of inflation. For this purpose, the rate of inflation shall be 
9.10 	the annual inflationary increase calculated under subdivision 2, paragraph (b). The ballot 
9.11 	may state that existing referendum levy authority is expiring. In this case, the ballot may 
9.12 	also compare the proposed levy authority to the existing expiring levy authority, and 
9.13 	express the proposed increase as the amount, if any, over the expiring referendum levy 
9.14 	authority. The ballot must designate the specific number of years, not to exceed ten, for 
9.15 	which the referendum authorization applies. The ballot, including a ballot on the question 
9.16 	to revoke or reduce the increased revenue amount under paragraph (c), must abbreviate 
9.17 	the term "per resident marginal cost pupil unit" as "per pupil." The notice required under 
9.18 	section 275.60 may be modified to read, in cases of renewing existing levies at the same 
9.19 	amount per pupil as in the previous year:
9.20 	"BY VOTING "YES" ON THIS BALLOT QUESTION, YOU MAY BE VOTING 
9.21 	FOR A PROPERTY TAX INCREASE ARE VOTING TO EXTEND AN EXISTING 
9.22 	PROPERTY TAX REFERENDUM THAT IS SCHEDULED TO EXPIRE."
9.23 	The ballot may contain a textual portion with the information required in this 
9.24 	subdivision and a question stating substantially the following:
9.25 	"Shall the increase in the revenue proposed by (petition to) the board of ........., 
9.26 	School District No. .., be approved?"
9.27 	If approved, an amount equal to the approved revenue per resident marginal cost 
9.28 	pupil unit times the resident marginal cost pupil units for the school year beginning in 
9.29 	the year after the levy is certified shall be authorized for certification for the number of 
9.30 	years approved, if applicable, or until revoked or reduced by the voters of the district at a 
9.31 	subsequent referendum.
9.32 	(b) The board must prepare and deliver by first class mail at least 15 days but no more 
9.33 	than 30 days before the day of the referendum to each taxpayer a notice of the referendum 
9.34 	and the proposed revenue increase. The board need not mail more than one notice to any 
9.35 	taxpayer. For the purpose of giving mailed notice under this subdivision, owners must be 
9.36 	those shown to be owners on the records of the county auditor or, in any county where 
10.1 	tax statements are mailed by the county treasurer, on the records of the county treasurer. 
10.2 	Every property owner whose name does not appear on the records of the county auditor 
10.3 	or the county treasurer is deemed to have waived this mailed notice unless the owner 
10.4 	has requested in writing that the county auditor or county treasurer, as the case may be, 
10.5 	include the name on the records for this purpose. The notice must project the anticipated 
10.6 	amount of tax increase in annual dollars for typical residential homesteads, agricultural 
10.7 	homesteads, apartments, and commercial-industrial property within the school district.
10.8 	The notice for a referendum may state that an existing referendum levy is expiring 
10.9 	and project the anticipated amount of increase over the existing referendum levy in 
10.10 	the first year, if any, in annual dollars for typical residential homesteads, agricultural 
10.11 	homesteads, apartments, and commercial-industrial property within the district.
10.12 	The notice must include the following statement: "Passage of this referendum will 
10.13 	result in an increase in your property taxes." However, in cases of renewing existing 
10.14 	levies, the notice may include the following statement: "Passage of this referendum may
10.15 	result in an increase in your property taxes extends an existing operating referendum at the 
10.16 	same amount per pupil as in the previous year." 
10.17 	(c) A referendum on the question of revoking or reducing the increased revenue 
10.18 	amount authorized pursuant to paragraph (a) may be called by the board and shall be called 
10.19 	by the board upon the written petition of qualified voters of the district. A referendum to 
10.20 	revoke or reduce the revenue amount must state the amount per resident marginal cost 
10.21 	pupil unit by which the authority is to be reduced. Revenue authority approved by the 
10.22 	voters of the district pursuant to paragraph (a) must be available to the school district at 
10.23 	least once before it is subject to a referendum on its revocation or reduction for subsequent 
10.24 	years. Only one revocation or reduction referendum may be held to revoke or reduce 
10.25 	referendum revenue for any specific year and for years thereafter.
10.26 	(d) A petition authorized by paragraph (a) or (c) is effective if signed by a number of 
10.27 	qualified voters in excess of 15 percent of the registered voters of the district on the day 
10.28 	the petition is filed with the board. A referendum invoked by petition must be held on the 
10.29 	date specified in paragraph (a).
10.30 	(e) The approval of 50 percent plus one of those voting on the question is required to 
10.31 	pass a referendum authorized by this subdivision.
10.32 	(f) At least 15 days before the day of the referendum, the district must submit a 
10.33 	copy of the notice required under paragraph (b) to the commissioner and to the county 
10.34 	auditor of each county in which the district is located. Within 15 days after the results 
10.35 	of the referendum have been certified by the board, or in the case of a recount, the 
11.1 	certification of the results of the recount by the canvassing board, the district must notify 
11.2 	the commissioner of the results of the referendum.

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

11.5 	Sec. 15. Minnesota Statutes 2006, section 126C.40, subdivision 1, is amended to read:
11.6 		Subdivision 1.To lease building or land. (a) When an independent or a special 
11.7 	school district or a group of independent or special school districts finds it economically 
11.8 	advantageous to rent or lease a building or land for any instructional purposes or for 
11.9 	school storage or furniture repair, and it determines that the operating capital revenue 
11.10 	authorized under section 126C.10, subdivision 13, is insufficient for this purpose, it may 
11.11 	apply to the commissioner for permission to make an additional capital expenditure levy 
11.12 	for this purpose. An application for permission to levy under this subdivision must contain 
11.13 	financial justification for the proposed levy, the terms and conditions of the proposed 
11.14 	lease, and a description of the space to be leased and its proposed use.
11.15 	(b) The criteria for approval of applications to levy under this subdivision must 
11.16 	include: the reasonableness of the price, the appropriateness of the space to the proposed 
11.17 	activity, the feasibility of transporting pupils to the leased building or land, conformity 
11.18 	of the lease to the laws and rules of the state of Minnesota, and the appropriateness of 
11.19 	the proposed lease to the space needs and the financial condition of the district. The 
11.20 	commissioner must not authorize a levy under this subdivision in an amount greater than 
11.21 	the cost to the district of renting or leasing a building or land for approved purposes. 
11.22 	The proceeds of this levy must not be used for custodial or other maintenance services. 
11.23 	A district may not levy under this subdivision for the purpose of leasing or renting a 
11.24 	district-owned building or site to itself.
11.25 	(c) For agreements finalized after July 1, 1997, a district may not levy under this 
11.26 	subdivision for the purpose of leasing: (1) a newly constructed building used primarily 
11.27 	for regular kindergarten, elementary, or secondary instruction; or (2) a newly constructed 
11.28 	building addition or additions used primarily for regular kindergarten, elementary, or 
11.29 	secondary instruction that contains more than 20 percent of the square footage of the 
11.30 	previously existing building.
11.31 	(d) Notwithstanding paragraph (b), a district may levy under this subdivision for the 
11.32 	purpose of leasing or renting a district-owned building or site to itself only if the amount 
11.33 	is needed by the district to make payments required by a lease purchase agreement, 
11.34 	installment purchase agreement, or other deferred payments agreement authorized by law, 
11.35 	and the levy meets the requirements of paragraph (c). A levy authorized for a district by 
12.1 	the commissioner under this paragraph may be in the amount needed by the district to 
12.2 	make payments required by a lease purchase agreement, installment purchase agreement, 
12.3 	or other deferred payments agreement authorized by law, provided that any agreement 
12.4 	include a provision giving the school districts the right to terminate the agreement 
12.5 	annually without penalty.
12.6 	(e) The total levy under this subdivision for a district for any year must not exceed 
12.7 	$100$150 times the resident pupil units for the fiscal year to which the levy is attributable.
12.8 	(f) For agreements for which a review and comment have been submitted to the 
12.9 	Department of Education after April 1, 1998, the term "instructional purpose" as used in 
12.10 	this subdivision excludes expenditures on stadiums.
12.11 	(g) The commissioner of education may authorize a school district to exceed the 
12.12 	limit in paragraph (e) if the school district petitions the commissioner for approval. The 
12.13 	commissioner shall grant approval to a school district to exceed the limit in paragraph (e) 
12.14 	for not more than five years if the district meets the following criteria:
12.15 	(1) the school district has been experiencing pupil enrollment growth in the 
12.16 	preceding five years;
12.17 	(2) the purpose of the increased levy is in the long-term public interest;
12.18 	(3) the purpose of the increased levy promotes colocation of government services; 
12.19 	and
12.20 	(4) the purpose of the increased levy is in the long-term interest of the district by 
12.21 	avoiding over construction of school facilities.
12.22 	(h) A school district that is a member of an intermediate school district may include 
12.23 	in its authority under this section the costs associated with leases of administrative and 
12.24 	classroom space for intermediate school district programs. This authority must not 
12.25 	exceed $25$37  times the adjusted marginal cost pupil units of the member districts. This 
12.26 	authority is in addition to any other authority authorized under this section.
12.27 	(i) In addition to the allowable capital levies in paragraph (a), a district that is a 
12.28 	member of the "Technology and Information Education Systems" data processing joint 
12.29 	board, that finds it economically advantageous to enter into a lease purchase agreement for 
12.30 	a building for a group of school districts or special school districts for staff development 
12.31 	purposes, may levy for its portion of lease costs attributed to the district within the total 
12.32 	levy limit in paragraph (e).

12.33 	Sec. 16. Minnesota Statutes 2006, section 126C.51, is amended to read:
12.34 	126C.51 APPLICATION OF LIMITING TAX LEGISLATION.
13.1 	Notwithstanding the provisions of section 471.69 or 471.75, or of any other 
13.2 	provision of law which by per capita limitation, local tax rate limitation, or otherwise, 
13.3 	limits the power of a district to incur any debt or to issue any warrant or order, a school 
13.4 	district or intermediate school district has the powers in sections 126C.50 to 126C.56
13.5 	specifically conferred upon it and all powers incident and necessary to carrying out the 
13.6 	purposes of sections 126C.50 to 126C.56. 

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

13.8 	Sec. 17. Minnesota Statutes 2006, section 126C.52, subdivision 2, is amended to read:
13.9 		Subd. 2.Limitations. The board of any school district may also borrow money 
13.10 	in the manner and subject to the limitations set forth in sections 126C.50 to 126C.56 in 
13.11 	anticipation of receipt of state aids for schools as defined in Minnesota Statutes and of 
13.12 	federal school aids to be distributed by or through the department. The aggregate of such 
13.13 	borrowings under this subdivision shall never exceed 75 percent of such aids which are 
13.14 	receivable by said school district in the schoolfiscal year (from July 1 to June 30) in which 
13.15 	the money is borrowed, as estimated and certified by the commissioner. 

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

13.17 	Sec. 18. Minnesota Statutes 2006, section 126C.52, is amended by adding a 
13.18 	subdivision to read:
13.19 		Subd. 3.Intermediate school districts. (a) The board of an intermediate school 
13.20 	district may borrow money in the manner and subject to the limitations set forth in 
13.21 	sections 126C.50 to 126C.56 in anticipation of the receipt of:
13.22 	(1) state aids for schools as defined in Minnesota Statutes;
13.23 	(2) federal school aids to be distributed by or through the department; and
13.24 	(3) membership fees and tuition payments from its member school districts.
13.25 	The aggregate of such borrowings under this subdivision shall never exceed 75 
13.26 	percent of such aids, fees, and tuition payments which are receivable by the intermediate 
13.27 	school district in the fiscal year in which the money is borrowed, as estimated and certified 
13.28 	by the commissioner.
13.29 	(b) The board of an intermediate school district may, upon receipt of a written 
13.30 	resolution by each of its member school districts, pledge the member district's full faith 
13.31 	and credit and unlimited taxing powers to repay each member district's pro rata share of 
13.32 	any certificates issued or the amount paid by the state under section 126C.55, subdivision 
14.1 	2, plus interest, if the revenues specified in paragraph (a) and any other revenues of the 
14.2 	intermediate school district are insufficient to do so.

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

14.4 	Sec. 19. Minnesota Statutes 2006, section 126C.53, is amended to read:
14.5 	126C.53 ENABLING RESOLUTION; FORM OF CERTIFICATES OF 
14.6 	INDEBTEDNESS.
14.7 	The board of a school district or intermediate school district may authorize and 
14.8 	effect such borrowing, and may issue such certificates of indebtedness upon passage of 
14.9 	a resolution specifying the amount and purposes for which it deems such borrowing is 
14.10 	necessary. The resolution must be adopted by a vote of at least two-thirds of its members. 
14.11 	The board must fix the amount, date, maturity, form, denomination, and other details of 
14.12 	the certificates of indebtedness, not inconsistent with this chapter. The board must fix the 
14.13 	date and place for receipt of bids for the purchase of the certificates when bids are required 
14.14 	and direct the clerk to give notice of the date and place for bidding.

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

14.16 	Sec. 20. Minnesota Statutes 2006, section 126C.55, is amended to read:
14.17 	126C.55 STATE PAYMENT OF DEBT OBLIGATION UPON POTENTIAL 
14.18 	DEFAULT; REPAYMENT; STATE OBLIGATION NOT DEBT.
14.19 		Subdivision 1.Definitions. For the purposes of this section, the term "debt 
14.20 	obligation" means:
14.21 	(1) a tax or aid anticipation certificate of indebtedness issued under section 126C.52;
14.22 	(2) a certificate of participation issued under section 126C.40, subdivision 6; or 
14.23 	(3) a general obligation bond.
14.24 		Subd. 2.Notifications; payment; appropriation. (a) If a school district or 
14.25 	intermediate school district believes that it may be unable to make a principal or interest 
14.26 	payment on any outstanding debt obligation on the date that payment is due, it must 
14.27 	notify the commissioner as soon as possible, but not less than 15 working days before the 
14.28 	date that principal or interest payment is due. The notice must include the name of the 
14.29 	district, an identification of the debt obligation issue in question, the date the payment is 
14.30 	due, the amount of principal and interest due on the payment date, the amount of principal 
14.31 	or interest that the district will be unable to repay on that date, the paying agent for the 
14.32 	debt obligation, the wire transfer instructions to transfer funds to that paying agent, and an 
14.33 	indication as to whether a payment is being requested by the district under this section. 
15.1 	If a paying agent becomes aware of a potential default, it shall inform the commissioner 
15.2 	of that fact. After receipt of a notice which requests a payment under this section, after 
15.3 	consultation with the district and the paying agent, and after verification of the accuracy of 
15.4 	the information provided, the commissioner shall notify the commissioner of finance of 
15.5 	the potential default. The notice must include a final figure as to the amount due that the 
15.6 	district will be unable to repay on the date due.
15.7 	(b) Except as provided in subdivision 9, upon receipt of this notice from the 
15.8 	commissioner, the commissioner of finance shall issue a warrant and authorize the 
15.9 	commissioner of education to pay to the paying agent for the debt obligation the specified 
15.10 	amount on or before the date due. The amounts needed for the purposes of this subdivision 
15.11 	are annually appropriated to the department from the state general fund.
15.12 	(c) The Departments of Education and Finance must jointly develop detailed 
15.13 	procedures for school districts and intermediate school districts to notify the state that they 
15.14 	have obligated themselves to be bound by the provisions of this section, procedures for 
15.15 	districts and paying agents to notify the state of potential defaults and to request state 
15.16 	payment under this section, and procedures for the state to expedite payments to prevent 
15.17 	defaults. The procedures are not subject to chapter 14.
15.18 		Subd. 3.School district bound; interest rate on state paid amount. If, at the 
15.19 	request of a school district or intermediate school district, the state has paid part or all of 
15.20 	the principal or interest due on a district's debt obligation on a specific date, the school 
15.21 	district or intermediate school district is bound by all provisions of this section and the 
15.22 	amount paid shall bear taxable interest from the date paid until the date of repayment at 
15.23 	the invested cash rate as it is certified by the commissioner of finance. Interest shall only 
15.24 	accrue on the amounts paid and outstanding less the reduction in aid under subdivision 4 
15.25 	and other payments received from the district.
15.26 		Subd. 4.Pledge of district's full faith and credit. If, at the request of a school 
15.27 	district or intermediate school district, the state has paid part or all of the principal or 
15.28 	interest due on a district's debt obligation on a specific date, the pledge of the full faith 
15.29 	and credit and unlimited taxing powers of the school district or the member districts 
15.30 	of the intermediate school district to repay the principal and interest due on those debt 
15.31 	obligations shall also, without an election or the requirement of a further authorization, 
15.32 	become a pledge of the full faith and credit and unlimited taxing powers of the school
15.33 	district or the member districts of the intermediate school district to repay to the state the 
15.34 	amount paid, with interest. Amounts paid by the state must be repaid in the order in which 
15.35 	the state payments were made.
16.1 		Subd. 4a.Aid reduction for repayment. (a) Except as provided in this subdivision, 
16.2 	the state must reduce the state aid payable to the school district or intermediate school 
16.3 	district under this chapter and chapters 122A, 123A, 123B, 124D, 125A, 126C, and 273 
16.4 	by the amount paid by the state under this section on behalf of the district, plus the interest 
16.5 	due on it, and the amount reduced must revert from the appropriate account to the state 
16.6 	general fund. Payments from the school district endowment fund or any federal aid 
16.7 	payments shall not be reduced.
16.8 	(b) For an intermediate school district, the state aid payable to the intermediate 
16.9 	school district must first be reduced, before any reduction is made to the state aids payable 
16.10 	to the member districts. If the state aid payable to the intermediate school district is 
16.11 	not sufficient to repay the state, state aid payable to member districts may be reduced 
16.12 	proportionately based on the ratio of each member district's adjusted net tax capacity to 
16.13 	the total adjusted net tax capacity of all member districts.
16.14 	(c) If, after review of the financial situation of the school district or intermediate 
16.15 	school district, the commissioner advises the commissioner of finance that a total reduction 
16.16 	of aids would cause an undue hardship on or an undue disruption of the educational 
16.17 	program of the district, the commissioner, with the approval of the commissioner of 
16.18 	finance, may establish a different schedule for reduction of aids to repay the state. The 
16.19 	amount of aids to be reduced is decreased by any amounts repaid to the state by the district 
16.20 	from other revenue sources.
16.21 		Subd. 6.Tax levy for repayment. (a) With the approval of the commissioner, a 
16.22 	district may levy in the year the state makes a payment under this section an amount up to 
16.23 	the amount necessary to provide funds for the repayment of the amount paid by the state 
16.24 	plus interest through the date of estimated repayment by the district. The proceeds of this 
16.25 	levy may be used only for this purpose unless they are in excess of the amount actually 
16.26 	due, in which case the excess shall be used to repay other state payments made under this 
16.27 	section or shall be deposited in the debt redemption fund of the school district. This levy 
16.28 	shall be an increase in the levy limits of the district for purposes of section 275.065, 
16.29 	subdivision 6. The amount of aids to be reduced to repay the state shall be decreased by 
16.30 	the amount levied. This levy by the district is not eligible for debt service equalization 
16.31 	under section 123B.53. 
16.32 	(b) If the state is not repaid in full for a payment made under this section by 
16.33 	November 30 of the calendar year following the year in which the state makes the 
16.34 	payment, the commissioner shall require the district to certify a property tax levy in an 
16.35 	amount up to the amount necessary to provide funds for repayment of the amount paid by 
16.36 	the state plus interest through the date of estimated repayment by the school district. To 
17.1 	prevent undue hardship, the commissioner may allow the district to certify the levy over a 
17.2 	five-year period. The proceeds of the levy may be used only for this purpose unless they 
17.3 	are in excess of the amount actually due, in which case the excess shall be used to repay 
17.4 	other state payments made under this section or shall be deposited in the debt redemption 
17.5 	fund of the district. This levy shall be an increase in the levy limits of the school district 
17.6 	for purposes of section 275.065, subdivision 6. If the commissioner orders the district 
17.7 	to levy, the amount of aids reduced to repay the state shall be decreased by the amount 
17.8 	levied. This levy by the district is not eligible for debt service equalization under section 
17.9 	123B.53 or any successor provision. A levy under this subdivision must be explained as a 
17.10 	specific increase at the meeting required under section 275.065, subdivision 6. 
17.11 	(c) For an intermediate school district, a levy made by a member district under 
17.12 	paragraph (a) or (b) to pay its pro rata share must be spread by the commissioner as a 
17.13 	tax rate based on the total adjusted net tax capacity of the member school districts. The 
17.14 	proceeds of the levy must be remitted by the member school district to the intermediate 
17.15 	school district and must be used by the intermediate school district only to repay the state 
17.16 	amounts owed. Any amount in excess of the amount owed to the state must be repaid to 
17.17 	the member school districts and the commissioner shall adjust each member district's 
17.18 	property tax levy in the next year.
17.19 		Subd. 7.Election as to mandatory application. A school district or intermediate 
17.20 	school district may covenant and obligate itself, prior to the issuance of an issue of debt 
17.21 	obligations, to notify the commissioner of a potential default and to use the provisions of 
17.22 	this section to guarantee payment of the principal and interest on those debt obligations 
17.23 	when due. If the district obligates itself to be bound by this section, it must covenant in the 
17.24 	resolution that authorizes the issuance of the debt obligations to deposit with the paying 
17.25 	agent three business days prior to the date on which a payment is due an amount sufficient 
17.26 	to make that payment or to notify the commissioner under subdivision 1 that it will be 
17.27 	unable to make all or a portion of that payment. A district that has obligated itself must 
17.28 	include a provision in its agreement with the paying agent for that issue that requires 
17.29 	the paying agent to inform the commissioner if it becomes aware of a potential default 
17.30 	in the payment of principal or interest on that issue or if, on the day two business days 
17.31 	prior to the date a payment is due on that issue, there are insufficient funds to make the 
17.32 	payment on deposit with the paying agent. Funds invested in a refunding escrow account 
17.33 	established under section 475.67 that are to become available to the paying agent on a 
17.34 	principal or interest payment date are deemed to be on deposit with the paying agent three 
17.35 	business days before the payment date. If a district either covenants to be bound by this 
17.36 	section or accepts state payments under this section to prevent a default of a particular 
18.1 	issue of debt obligations, the provisions of this section shall be binding as to that issue 
18.2 	as long as any debt obligation of that issue remain outstanding. If the provisions of this 
18.3 	section are or become binding for more than one issue of debt obligations and a district is 
18.4 	unable to make payments on one or more of those issues, the district must continue to 
18.5 	make payments on the remaining issues. 
18.6 		Subd. 8.Mandatory plan; technical assistance. If the state makes payments on 
18.7 	behalf of a school district or intermediate school district under this section or the district 
18.8 	defaults in the payment of principal or interest on an outstanding debt obligation, it must 
18.9 	submit a plan to the commissioner for approval specifying the measures it intends to 
18.10 	implement to resolve the issues which led to its inability to make the payment and to 
18.11 	prevent further defaults. The department must provide technical assistance to the district 
18.12 	in preparing its plan. If the commissioner determines that a district's plan is not adequate, 
18.13 	the commissioner shall notify the district that the plan has been disapproved, the reasons 
18.14 	for the disapproval, and that the state shall not make future payments under this section for 
18.15 	debt obligations issued after the date specified in that notice until its plan is approved. The 
18.16 	commissioner may also notify the district that until its plan is approved, other aids due the 
18.17 	district will be withheld after a date specified in the notice.
18.18 		Subd. 9.State bond rating. If the commissioner of finance determines that the 
18.19 	credit rating of the state would be adversely affected thereby, the commissioner of finance 
18.20 	shall not issue warrants under subdivision 2 for the payment of principal or interest on any 
18.21 	debt obligations for which a district did not, prior to their issuance, obligate itself to be 
18.22 	bound by the provisions of this section.
18.23 		Subd. 10.Continuing disclosure agreements. The commissioner of finance 
18.24 	may enter into written agreements or contracts relating to the continuing disclosure of 
18.25 	information needed to facilitate the ability of school districts to issue debt obligations 
18.26 	according to federal securities laws, rules, and regulations, including securities and 
18.27 	exchange commission rules and regulations, section 240.15c2-12. Such agreements or 
18.28 	contracts may be in any form the commissioner of finance deems reasonable and in the 
18.29 	state's best interests.

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

18.31 	Sec. 21. Minnesota Statutes 2006, section 127A.45, subdivision 16, is amended to read:
18.32 		Subd. 16.Payments to third parties. Notwithstanding subdivision 3, the current 
18.33 	year aid payment percentage of the amounts under section 123A.26, subdivision 3 and 
18.34 	section 124D.041, shall be paid in equal installments on August 30, December 30, and 
19.1 	March 30, with a final adjustment payment on October 30 of the next fiscal year of the 
19.2 	remaining amount.

19.3 	Sec. 22. Minnesota Statutes 2007 Supplement, section 127A.49, subdivision 2, is 
19.4 	amended to read:
19.5 		Subd. 2.Abatements. Whenever by virtue of chapter 278, sections 270C.86, 
19.6 	375.192, or otherwise, the net tax capacity or referendum market value of any district for 
19.7 	any taxable year is changed after the taxes for that year have been spread by the county 
19.8 	auditor and the local tax rate as determined by the county auditor based upon the original 
19.9 	net tax capacity is applied upon the changed net tax capacities, the county auditor shall, 
19.10 	prior to February 1 of each year, certify to the commissioner of education the amount of 
19.11 	any resulting net revenue loss that accrued to the district during the preceding year. Each 
19.12 	year, the commissioner shall pay an abatement adjustment to the district in an amount 
19.13 	calculated according to the provisions of this subdivision. This amount shall be deducted 
19.14 	from the amount of the levy authorized by section 126C.46. The amount of the abatement 
19.15 	adjustment must be the product of:
19.16 	(1) the net revenue loss as certified by the county auditor, times
19.17 	(2) the ratio of:
19.18 	(i) the sum of the amounts of the district's certified levy in the third preceding year 
19.19 	according to the following:
19.20 	(A) section 123B.57, if the district received health and safety aid according to that 
19.21 	section for the second preceding year;
19.22 	(B) section 124D.20, if the district received aid for community education programs 
19.23 	according to that section for the second preceding year;
19.24 	(C) section 124D.135, subdivision 3, if the district received early childhood family 
19.25 	education aid according to section 124D.135 for the second preceding year; 
19.26 	(D) section 126C.17, subdivision 6, if the district received referendum equalization 
19.27 	aid according to that section for the second preceding year; 
19.28 	(E) section 126C.13, if the district received general education aid according to 
19.29 	section 126C.13, subdivision 4, paragraph (b), clause (1), of that section in the second 
19.30 	preceding year;
19.31 	(F)(E) section 126C.10, subdivision 13a, if the district received operating capital aid 
19.32 	according to section 126C.10, subdivision 13b, in the second preceding year;
19.33 	(G)(F) section 126C.10, subdivision 29, if the district received equity aid according 
19.34 	to section 126C.10, subdivision 30, in the second preceding year;
20.1 	(H)(G) section 126C.10, subdivision 32, if the district received transition aid 
20.2 	according to section 126C.10, subdivision 33, in the second preceding year;
20.3 	(I)(H) section 123B.53, subdivision 5, if the district received debt service 
20.4 	equalization aid according to section 123B.53, subdivision 6, in the second preceding year;
20.5 	(J)(I) section 124D.22, subdivision 3, if the district received school-age care aid 
20.6 	according to section 124D.22, subdivision 4, in the second preceding year;
20.7 	(K)(J) section 123B.591, subdivision 3, if the district received deferred maintenance 
20.8 	aid according to section 123B.591, subdivision 4, in the second preceding year; and
20.9 	(L)(K) section 126C.10, subdivision 35, if the district received alternative teacher 
20.10 	compensation equalization aid according to section 126C.10, subdivision 36, paragraph 
20.11 	(a), in the second preceding year; to
20.12 	(ii) the total amount of the district's certified levy in the third preceding December, 
20.13 	plus or minus auditor's adjustments.

20.14 	Sec. 23. Minnesota Statutes 2007 Supplement, section 127A.49, subdivision 3, is 
20.15 	amended to read:
20.16 		Subd. 3.Excess tax increment. (a) If a return of excess tax increment is made to a 
20.17 	district pursuant to sections 469.176, subdivision 2, and 469.177, subdivision 9, or upon 
20.18 	decertification of a tax increment district, the school district's aid and levy limitations 
20.19 	must be adjusted for the fiscal year in which the excess tax increment is paid under the 
20.20 	provisions of this subdivision.
20.21 	(b) An amount must be subtracted from the district's aid for the current fiscal year 
20.22 	equal to the product of:
20.23 	(1) the amount of the payment of excess tax increment to the district, times
20.24 	(2) the ratio of:
20.25 	(i) the sum of the amounts of the district's certified levy for the fiscal year in which 
20.26 	the excess tax increment is paid according to the following:
20.27 	(A) section 123B.57, if the district received health and safety aid according to that 
20.28 	section for the second preceding year;
20.29 	(B) section 124D.20, if the district received aid for community education programs 
20.30 	according to that section for the second preceding year;
20.31 	(C) section 124D.135, subdivision 3, if the district received early childhood family 
20.32 	education aid according to section 124D.135 for the second preceding year; 
20.33 	(D) section 126C.17, subdivision 6, if the district received referendum equalization 
20.34 	aid according to that section for the second preceding year; 
21.1 	(E) section 126C.13, if the district received general education aid according to 
21.2 	section 126C.13, subdivision 4, paragraph (b), clause (1), of that section in the second 
21.3 	preceding year;
21.4 	(F)(E) section 126C.10, subdivision 13a, if the district received operating capital aid 
21.5 	according to section 126C.10, subdivision 13b, in the second preceding year;
21.6 	(G)(F) section 126C.10, subdivision 29, if the district received equity aid according 
21.7 	to section 126C.10, subdivision 30, in the second preceding year;
21.8 	(H)(G) section 126C.10, subdivision 32, if the district received transition aid 
21.9 	according to section 126C.10, subdivision 33, in the second preceding year;
21.10 	(I)(H) section 123B.53, subdivision 5, if the district received debt service 
21.11 	equalization aid according to section 123B.53, subdivision 6, in the second preceding year;
21.12 	(J)(I) section 124D.22, subdivision 3, if the district received school-age care aid 
21.13 	according to section 124D.22, subdivision 4, in the second preceding year;
21.14 	(K)(J) section 123B.591, subdivision 3, if the district received deferred maintenance 
21.15 	aid according to section 123B.591, subdivision 4, in the second preceding year; and
21.16 	(L)(K) section 126C.10, subdivision 35, if the district received alternative teacher 
21.17 	compensation equalization aid according to section 126C.10, subdivision 36, paragraph 
21.18 	(a), in the second preceding year; to
21.19 	(ii) the total amount of the district's certified levy for the fiscal year, plus or minus 
21.20 	auditor's adjustments.
21.21 	(c) An amount must be subtracted from the school district's levy limitation for the 
21.22 	next levy certified equal to the difference between:
21.23 	(1) the amount of the distribution of excess increment; and
21.24 	(2) the amount subtracted from aid pursuant to clause (a).
21.25 	If the aid and levy reductions required by this subdivision cannot be made to the aid 
21.26 	for the fiscal year specified or to the levy specified, the reductions must be made from 
21.27 	aid for subsequent fiscal years, and from subsequent levies. The school district must use 
21.28 	the payment of excess tax increment to replace the aid and levy revenue reduced under 
21.29 	this subdivision.
21.30 	(d) This subdivision applies only to the total amount of excess increments received 
21.31 	by a district for a calendar year that exceeds $25,000.

21.32 	Sec. 24. Laws 2007, chapter 146, article 1, section 24, subdivision 2, is amended to 
21.33 	read:
21.34 		Subd. 2. General education aid. For general education aid under Minnesota 
21.35 	Statutes, section 126C.13, subdivision 4:

22.1
22.2		$ 
	5,618,342,000
5,600,647,000
	..... 
	2008 
	
22.3
22.4		$ 
	5,618,342,000
5,650,587,000
	..... 
	2009 
	
22.5 	The 2008 appropriation includes $531,733,000 $536,251,000 for 2007 and 
22.6 	$5,073,250,000 $5,064,396,000 for 2008.
22.7 	The 2009 appropriation includes $546,314,000 $543,752,000 for 2008 and 
22.8 	$5,072,028,000$5,106,835,000 for 2009.

22.9 	Sec. 25. Laws 2007, First Special Session chapter 2, article 1, section 11, subdivision 
22.10 	1, is amended to read:

22.11	Subdivision 1. Total Appropriation
 			$ 
	584,000 148,000
	
22.12 	The appropriations in this section are from 
22.13 	the general fund. The amounts that may be 
22.14 	spent for each purpose are specified in the 
22.15 	following subdivisions. 

22.16 	Sec. 26. Laws 2007, First Special Session chapter 2, article 1, section 11, subdivision 
22.17 	2, is amended to read:

22.18
22.19	Subd. 2. Independent School District No. 239, 
Rushford-Peterson

22.20	(a) Flood Enrollment Impact Aid
 				89,000 
	
22.21 	The commissioner of education shall pay to 
22.22 	the school district flood enrollment impact 
22.23 	aid equal to $5,394 times the number of 
22.24 	pupils lost as a result of the floods of August 
22.25 	2007. The district must provide to the 
22.26 	commissioner of education documentation 
22.27 	of the number of pupils in average daily 
22.28 	membership lost as a result of the flood. 

22.29	(b) Disaster Relief Facilities Grant
 				250,000
	
22.30 	For facilities cleanup, repair, and replacement 
22.31 	costs related to the floods of August 2007 not 
22.32 	covered by the district's insurance settlement 
22.33 	or through Federal Emergency Management 
23.1 	Agency payments. The commissioner of 
23.2 	education may request the school district 
23.3 	to provide necessary information before 
23.4 	awarding a grant. 

23.5	(c)Pupil Transportation Aid
 				40,000 
	
23.6 	For increased costs associated with 
23.7 	transporting students as a result of the floods 
23.8 	of August 2007. 

23.9 	Sec. 27. Laws 2007, First Special Session chapter 2, article 1, section 11, subdivision 
23.10 	6, is amended to read:

23.11
23.12	Subd. 6. Disaster Relief Facilities Grants to 
Other Districts
 				90,00014,000
	
23.13 	For facilities cleanup, repair, and replacement 
23.14 	costs related to the floods of August 2007 not 
23.15 	covered by the district's insurance settlement 
23.16 	or through Federal Emergency Management 
23.17 	Agency payments. The commissioner of 
23.18 	education may request the school district 
23.19 	to provide necessary information before 
23.20 	awarding a grant. School districts not 
23.21 	included in subdivisions 2 to 5 must be given 
23.22 	priority in the allocation of this appropriation.

23.23 	Sec. 28. ENROLLMENT AND TRANSPORTATION AID.
 23.24 	For fiscal year 2010 only, Independent School District No. 239, Rushford-Peterson, 
23.25 	is eligible for school district flood enrollment aid and aid for increased transportation costs 
23.26 	equal to $158,000 as a result of the floods of August 2007. Of this amount, $40,000 is 
23.27 	for increased costs associated with transporting students.

23.28 	Sec. 29. LIMITATION ON NEW ALTERNATIVE COMPENSATION SCHOOL 
23.29 	DISTRICTS AND CHARTER SCHOOLS, FISCAL YEARS 2009 TO 2013.
 23.30 	Notwithstanding Minnesota Statutes, sections 122A.413; 122A.414; 122A.415; 
23.31 	122A.416; and 126C.10, subdivisions 34, 35, and 36, the Department of Education must 
23.32 	limit the participation in the alternative teacher pay program to those district sites and 
24.1 	charter schools that received alternative compensation revenue in fiscal year 2008 or those 
24.2 	district sites and charter schools that have submitted an application, under Minnesota 
24.3 	Statutes, section 122A.414, by February 28, 2008, for fiscal year 2009 alternative 
24.4 	compensation participation. This limitation applies to fiscal year 2009 through fiscal 
24.5 	year 2013. No additional district sites or charter schools may be approved until after 
24.6 	June 30, 2013.

24.7 	Sec. 30. SPARSITY, ADJUSTMENT AID, LANCASTER.
 24.8 	For fiscal year 2009 only, Independent School District No. 356, Lancaster, is eligible 
24.9 	to receive sparsity adjustment aid equal to $82,000.

24.10 	Sec. 31. SPARSITY TRANSPORTATION LEVY.
24.11 	A school district that is eligible to receive elementary or secondary sparsity revenue, 
24.12 	under Minnesota Statutes, section 126C.10, subdivisions 7 and 8, may levy to pay for 
24.13 	transportation costs. The total amount of the levy must not exceed $80 times the adjusted 
24.14 	marginal cost pupil units in the district for the year in which the levy is certified.

24.15 	EFFECTIVE DATE. This section is effective for taxes payable in 2009 only.

24.16 	Sec. 32. APPROPRIATIONS.
 24.17 		Subdivision 1.Department of Education. The sums indicated in this section are 
24.18 	appropriated from the general fund to the Department of Education for the fiscal years 
24.19 	designated.
24.20 		Subd. 2.Independent School District No. 239, Rushford-Peterson. For school 
24.21 	district flood enrollment impact aid as a result of the floods of August 2007.

24.22		$
	158,000
	.....
	2009
	
24.23 	The base appropriation for fiscal year 2010 is $158,000. The base appropriation for 
24.24 	later years is zero.
24.25 	The district must provide to the commissioner of education documentation of 
24.26 	the additional pupil transportation costs and the number of pupils in average daily 
24.27 	membership lost as a result of the flood.
24.28 	Up to $40,000 is for increased costs associated with transporting students as a result 
24.29 	of the floods of August 2007.
24.30 		Subd. 3.Independent School District No. 356, Lancaster. For sparsity adjustment 
24.31 	aid.

25.1		$
	82,000
	.....
	2009
	
25.2 	This is a onetime appropriation.

25.3 	Sec. 33.  REPEALER.
 25.4 	(a) Minnesota Statutes 2006, section 126C.21, subdivision 1, is repealed for revenue 
25.5 	for fiscal year 2009 and later.
25.6 	(b) Minnesota Statutes 2006, section 126C.10, subdivisions 35 and 36, are repealed 
25.7 	for revenue for fiscal year 2010 and later.
25.8 	(c) Minnesota Statutes 2006, section 127A.45, subdivision 7a, is repealed.
25.9 	(d) Minnesota Statutes 2007 Supplement, section 126C.10, subdivision 34, is 
25.10 	repealed for revenue for fiscal year 2010 and later.
25.11 	(e) Laws 2007, First Special Session chapter 2, article 1, section 11, subdivisions 3, 
25.12 	and 4, are repealed.

25.13 	ARTICLE 2
25.14 	EDUCATION EXCELLENCE

25.15 	Section 1. [1.1499] STATE SPORT.
25.16 	Ice hockey is adopted as the official sport of the state of Minnesota.

25.17 	Sec. 2. [120B.17] MINNESOTA VIRTUAL EDUCATION PROGRAM.
25.18 		Subdivision 1.Program. A state of Minnesota virtual education program is 
25.19 	established for teachers and students to improve and enhance teacher instruction and 
25.20 	student learning through integration of technology and online learning. The commissioner 
25.21 	of education shall establish the program and develop a selection of online courses for 
25.22 	students and lesson plans for teachers. The online student courses shall be established 
25.23 	for grades 6 through 12.
25.24 		Subd. 2.Scope and requirements. (a) The student courses and teacher lesson plans 
25.25 	shall be developed by department staff, content experts, licensed Minnesota teachers, 
25.26 	licensed administrators, and business representatives. The courses must be aligned to 
25.27 	the Minnesota academic standards established in Minnesota Rules, chapter 3501. The 
25.28 	commissioner of education, in working with qualified individuals, must establish at 
25.29 	least ten student courses and teacher lesson plans that will be available to students and 
25.30 	teachers no later than the 2009-2010 school year. The commissioner must give priority 
25.31 	in the development of courses and lesson plans to science, technology, engineering, 
26.1 	mathematics, and advanced courses. The courses available to students must be monitored 
26.2 	and delivered by licensed Minnesota teachers under section 122A.16.
26.3 	(b) School districts and charter schools participating in the program must:
26.4 	(1) submit a letter of intent to the commissioner of education;
26.5 	(2) allow students to participate in the program;
26.6 	(3) train teachers to monitor and deliver courses;
26.7 	(4) allow students to receive graduation credit, if appropriate, for successful 
26.8 	completion of the courses;
26.9 	(5) issue grades to students enrolled in the online courses; and
26.10 	(6) report progress to the department on student participation and completion rates.
26.11 		Subd. 3.Report. The commissioner of education must submit a report to the chairs 
26.12 	of the house of representatives and senate education committees by October 1, 2010, 
26.13 	assessing the progress and development of the program.

26.14 	Sec. 3. [120B.299] DEFINITIONS.
26.15 		Subdivision 1.Definitions. The definitions in this section apply to this chapter.
26.16 		Subd. 2.Growth. "Growth" compares the difference between a student's 
26.17 	achievement score at two distinct points in time.
26.18 		Subd. 3.Value-added. "Value-added" is the amount of achievement a student 
26.19 	demonstrates above an established baseline.
26.20 		Subd. 4.Growth-based value-added. "Growth-based value-added" is a 
26.21 	value-added system of assessments that measures the difference between an established 
26.22 	baseline of growth and a student's growth over time.
26.23 		Subd. 5.Adequate yearly progress. Adequate yearly progress compares the 
26.24 	average achievement of two different groups of students at two different points in time. 
26.25 		Subd. 6.State growth norm. "State growth norm" is an established statewide 
26.26 	percentile, or standard applicable to all students in a particular grade benchmarked to an 
26.27 	established school year. Beginning in the 2008-2009 school year, the state growth norm 
26.28 	is benchmarked to 2006-2007 school year data until the commissioner next changes the 
26.29 	vertically linked scale score. Each time the commissioner changes the vertically linked 
26.30 	scale score, a recognized Minnesota assessment group composed of assessment and 
26.31 	evaluation directors and staff and researchers under section 120B.299, subdivision 6, in 
26.32 	collaboration with the Independent Office of Educational Accountability under section 
26.33 	120B.31, subdivision 3, must recommend a new state growth norm that the commissioner 
26.34 	shall consider with the revised standards. For each newly established state growth 
26.35 	norm, the commissioner also must establish criteria for identifying schools and school 
27.1 	districts that demonstrate accelerated growth in order to advance educators' professional 
27.2 	development and to replicate programs that succeed in meeting students' diverse learning 
27.3 	needs.

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

27.5 	Sec. 4. Minnesota Statutes 2007 Supplement, section 120B.30, subdivision 1a, is 
27.6 	amended to read:
27.7 		Subd. 1a.Statewide and local assessments; results. (a) The commissioner must 
27.8 	develop reading, mathematics, and science assessments aligned with state academic 
27.9 	standards that districts and sites must use to monitor student growth toward achieving 
27.10 	those standards. The commissioner must not develop statewide assessments for academic 
27.11 	standards in social studies, health and physical education, and the arts. The commissioner 
27.12 	must require:
27.13 	(1) annual reading and mathematics assessments in grades 3 through 8 and at the 
27.14 	high school level for the 2005-2006 school year and later; and
27.15 	(2) annual science assessments in one grade in the grades 3 through 5 span, the 
27.16 	grades 6 through 9 span, and a life sciences assessment in the grades 10 through 12 span 
27.17 	for the 2007-2008 school year and later.
27.18 	(b) The commissioner must ensure that all statewide tests administered to elementary 
27.19 	and secondary students measure students' academic knowledge and skills and not students' 
27.20 	values, attitudes, and beliefs.
27.21 	(c) Reporting of assessment results must:
27.22 	(1) provide timely, useful, and understandable information on the performance of 
27.23 	individual students, schools, school districts, and the state;
27.24 	(2) include, by no later than the 2008-2009 school year, a growth-based, value-added 
27.25 	component that is in addition to a measure for student achievement growth over time
27.26 	indicator of student achievement under section 120B.35, subdivision 3, paragraph (b); and
27.27 	(3)(i) for students enrolled in grade 8 before the 2005-2006 school year, determine 
27.28 	whether students have met the state's basic skills requirements; and
27.29 	(ii) for students enrolled in grade 8 in the 2005-2006 school year and later, determine 
27.30 	whether students have met the state's academic standards.
27.31 	(d) Consistent with applicable federal law and subdivision 1, paragraph (d), clause 
27.32 	(1), the commissioner must include appropriate, technically sound accommodations or 
27.33 	alternative assessments for the very few students with disabilities for whom statewide 
27.34 	assessments are inappropriate and for students with limited English proficiency.
28.1 	(e) A school, school district, and charter school must administer statewide 
28.2 	assessments under this section, as the assessments become available, to evaluate student 
28.3 	progress in achieving the proficiency in the context of the state's grade level  academic 
28.4 	standards. If a state assessment is not available, a school, school district, and charter 
28.5 	school must determine locally if a student has met the required academic standards. A 
28.6 	school, school district, or charter school may use a student's performance on a statewide 
28.7 	assessment as one of multiple criteria to determine grade promotion or retention. A 
28.8 	school, school district, or charter school may use a high school student's performance on a 
28.9 	statewide assessment as a percentage of the student's final grade in a course, or place a 
28.10 	student's assessment score on the student's transcript.

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

28.12 	Sec. 5. Minnesota Statutes 2006, section 120B.31, as amended by Laws 2007, chapter 
28.13 	146, article 2, section 10, is amended to read:
28.14 	120B.31 SYSTEM ACCOUNTABILITY AND STATISTICAL 
28.15 	ADJUSTMENTS.
28.16 		Subdivision 1.Educational accountability and public reporting. Consistent 
28.17 	with the process direction to adopt a results-oriented graduation rule statewide academic 
28.18 	standards under section 120B.02, the department, in consultation with education and other 
28.19 	system stakeholders, must establish maintain a coordinated and comprehensive system of 
28.20 	educational accountability and public reporting that promotes higher greater academic 
28.21 	achievement, preparation for higher academic education, preparation for the world of 
28.22 	work, citizenship as outlined under sections 120B.021, subdivision 1, clause (4); and 
28.23 	120B.024, paragraph (a), clause (4), and the arts. 
28.24 		Subd. 2.Statewide testing. Each school year, all school districts shall give a 
28.25 	uniform statewide test to students at specified grades to provide information on the status, 
28.26 	needs and performance of Minnesota students.
28.27 		Subd. 3.Educational accountability. (a) The Independent Office of Educational 
28.28 	Accountability, as authorized by Laws 1997, First Special Session chapter 4, article 5, 
28.29 	section 28, subdivision 2, is established, and shall be funded through the Board of Regents 
28.30 	of the University of Minnesota. The office shall advise the education committees of 
28.31 	the legislature and the commissioner of education, at least on a biennial basis, on the 
28.32 	degree to which the statewide educational accountability and reporting system includes a 
28.33 	comprehensive assessment framework that measures school accountability for students 
28.34 	achieving the goals described in the state's results-oriented high school graduation 
29.1 	rule. The office shall determine and annually report to the legislature whether and how 
29.2 	effectively: 
29.3 	(1) the statewide system of educational accountability utilizes uses multiple 
29.4 	indicators to provide valid and reliable comparative and contextual data on students, 
29.5 	schools, districts, and the state, and if not, recommend ways to improve the accountability 
29.6 	reporting system;
29.7 	(2) the commissioner makes statistical adjustments when reporting student data over 
29.8 	time, consistent with clause (4);
29.9 	(3) the commissioner uses indicators of student achievement growth a growth-based 
29.10 	value-added indicator of student achievement over time and a value-added assessment 
29.11 	model that estimates the effects of the school and school district on student achievement to 
29.12 	measure school performance, consistent with section 120B.36, subdivision 1 120B.35, 
29.13 	subdivision 3, paragraph (b);
29.14 	(4) (3) the commissioner makes data available on students who do not pass one or 
29.15 	more of the state's required GRAD tests and do not receive a diploma as a consequence, 
29.16 	and categorizes these data according to gender, race, eligibility for free or reduced lunch, 
29.17 	and English language proficiency; and
29.18 	(5) (4) the commissioner fulfills the requirements under section 127A.095, 
29.19 	subdivision 2.
29.20 	(b) When the office reviews the statewide educational accountability and reporting 
29.21 	system, it shall also consider:
29.22 	(1) the objectivity and neutrality of the state's educational accountability system; and
29.23 	(2) the impact of a testing program on school curriculum and student learning.
29.24 		Subd. 4.Statistical adjustments; student performance data. In developing 
29.25 	managing policies and assessment processes to hold schools and districts accountable 
29.26 	for high levels of academic standards under section 120B.021, the commissioner shall 
29.27 	aggregate student data over time to report student performance and growth levels 
29.28 	measured at the school, school district, regional, or and statewide level. When collecting 
29.29 	and reporting the performance data, the commissioner shall: (1) acknowledge the impact 
29.30 	of significant demographic factors such as residential instability, the number of single 
29.31 	parent families, parents' level of education, and parents' income level on school outcomes; 
29.32 	and (2) organize and report the data so that state and local policy makers can understand 
29.33 	the educational implications of changes in districts' demographic profiles over time. Any 
29.34 	report the commissioner disseminates containing summary data on student performance 
29.35 	must integrate student performance and the demographic factors that strongly correlate 
29.36 	with that performance.

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

30.2 	Sec. 6. Minnesota Statutes 2006, section 120B.35, as amended by Laws 2007, chapter 
30.3 	147, article 8, section 38, is amended to read:
30.4 	120B.35 STUDENT ACADEMIC ACHIEVEMENT AND PROGRESS
30.5 	GROWTH.
30.6 		Subdivision 1.Adequate yearly progress of schools and students School and 
30.7 	student indicators of growth and achievement. The commissioner must develop 
30.8 	and implement maintain a system for measuring and reporting academic achievement 
30.9 	and individual student progress growth, consistent with the statewide educational 
30.10 	accountability and reporting system. The system components of the system must measure 
30.11 	the adequate yearly progress of schools and  the growth of individual students: students' 
30.12 	current achievement in schools under subdivision 2; and individual students' educational 
30.13 	progress growth over time under subdivision 3. The system also must include statewide 
30.14 	measures of student academic achievement growth that identify schools with high levels 
30.15 	of achievement growth, and also schools with low levels of achievement growth that need 
30.16 	improvement. When determining a school's effect, the data must include both statewide 
30.17 	measures of student achievement and, to the extent annual tests are administered,
30.18 	indicators of achievement growth that take into account a student's prior achievement. 
30.19 	Indicators of achievement and prior achievement must be based on highly reliable 
30.20 	statewide or districtwide assessments. Indicators that take into account a student's prior 
30.21 	achievement must not be used to disregard a school's low achievement or to exclude 
30.22 	a school from a program to improve low achievement levels. The commissioner by 
30.23 	January 15, 2002, must submit a plan for integrating these components to the chairs of 
30.24 	the legislative committees having policy and budgetary responsibilities for elementary 
30.25 	and secondary education.
30.26 		Subd. 2.Expectations for federally mandated student academic achievement.
 30.27 	(a) Each school year, a school district must determine if the student achievement levels 
30.28 	at each school site meet state and local federally mandated expectations. If student 
30.29 	achievement levels at a school site do not meet state and local federally mandated
30.30 	expectations and the site has not made adequate yearly progress for two consecutive 
30.31 	school years, beginning with the 2001-2002 school year, the district must work with the 
30.32 	school site to adopt a plan to raise student achievement levels to meet state and local
30.33 	federally mandated expectations. The commissioner of education shall establish student 
30.34 	academic achievement levels to comply with this paragraph.
31.1 	(b) School sites identified as not meeting federally mandated expectations must 
31.2 	develop continuous improvement plans in order to meet state and local federally mandated
31.3 	expectations for student academic achievement. The department, at a district's request, 
31.4 	must assist the district and the school site in developing a plan to improve student 
31.5 	achievement. The plan must include parental involvement components.
31.6 	(c) The commissioner must:
31.7 	(1) provide assistance to assist school sites and districts identified as not meeting 
31.8 	federally mandated expectations; and
31.9 	(2) provide technical assistance to schools that integrate student progress measures 
31.10 	under subdivision 3 in the school continuous improvement plan.
31.11 	(d) The commissioner shall establish and maintain a continuous improvement Web 
31.12 	site designed to make data on every school and district available to parents, teachers, 
31.13 	administrators, community members, and the general public.
31.14 		Subd. 3.Student progress assessment growth; other state measures. (a) 
31.15 	The state's educational assessment system component measuring individual students' 
31.16 	educational progress must be growth is based, to the extent annual tests are administered,
31.17 	on indicators of achievement growth that show an individual student's prior achievement. 
31.18 	Indicators of achievement and prior achievement must be are based on highly reliable 
31.19 	statewide or districtwide assessments.
31.20 	(b) The commissioner must identify effective models for measuring individual 
31.21 	student progress that enable a school district or school site to perform gains-based 
31.22 	analysis, including evaluating the effects of the teacher, school, and school district on 
31.23 	student achievement over time. At least one model must be a "value-added" assessment 
31.24 	model that reliably estimates those effects for classroom settings where a single teacher 
31.25 	teaches multiple subjects to the same group of students, for team teaching arrangements, 
31.26 	and for other teaching circumstances. use a growth-based value-added system. The 
31.27 	commissioner must apply the state growth norm to students in grades 4 through 8 
31.28 	beginning in the 2008-2009 school year, consistent with section 120B.299, subdivision 
31.29 	6, initially benchmarking the state growth norm to 2007-2008 school year data. The 
31.30 	model must allow the user to:
31.31 	(1) report student growth at and above the state norm; and
31.32 	(2) for all student categories with a cell size of at least 20, report and compare 
31.33 	aggregated and disaggregated state growth data using the nine student categories identified 
31.34 	under the federal 2001 No Child Left Behind Act and two student gender categories of 
31.35 	male and female, respectively. The model must have the ability to measure the effects on 
31.36 	student growth at the school level.  
32.1 	(c) If a district has an accountability plan that includes gains-based analysis or 
32.2 	"value-added" assessment, the commissioner shall, to the extent practicable, incorporate 
32.3 	those measures in determining whether the district or school site meets expectations. The 
32.4 	department must coordinate with the district in evaluating school sites and continuous 
32.5 	improvement plans, consistent with best practices. If a district has an accountability 
32.6 	plan that includes other growth-based value-added analysis, the commissioner may, to 
32.7 	the extent practicable and consistent with this section, incorporate those measures in 
32.8 	determining whether the district or school site shows growth. When reporting student 
32.9 	performance under section 120B.36, subdivision 1, the commissioner annually, beginning 
32.10 	July 1, 2011, must report two core measures indicating the extent to which current high 
32.11 	school graduates are being prepared for postsecondary academic and career opportunities:
32.12 	(1) a preparation measure indicating the number and percentage of high school 
32.13 	graduates in the most recent school year who completed course work important to 
32.14 	preparing them for postsecondary academic and career opportunities, consistent with the 
32.15 	core academic subjects required for admission to Minnesota's public four-year colleges 
32.16 	and universities as determined by the Minnesota Office of Higher Education under chapter 
32.17 	136A; and
32.18 	(2) a rigorous coursework measure indicating the number and percentage of high 
32.19 	school graduates in the most recent school year who successfully completed one or more 
32.20 	college-level advanced placement, international baccalaureate, postsecondary enrollment 
32.21 	options, other rigorous courses of study under section 120B.021, subdivision 1a, or 
32.22 	industry certification courses.
32.23 	When reporting the core measures under clauses (1) and (2), the commissioner must also 
32.24 	analyze and report separate categories of information using the nine student categories 
32.25 	identified under the federal 2001 No Child Left Behind Act and two student gender 
32.26 	categories of male and female, respectively.
32.27 		Subd. 4.Improving schools. Consistent with the requirements of this section, the 
32.28 	commissioner of education must establish a second achievement benchmark to identify 
32.29 	improving schools. The commissioner must recommend to annually report to the public 
32.30 	and  the legislature by February 15, 2002, indicators in addition to the achievement 
32.31 	benchmark for identifying improving schools, including an indicator requiring a school to 
32.32 	demonstrate ongoing successful use of best teaching practices best practices learned from 
32.33 	those schools that demonstrate accelerated growth compared to the state growth norm.
32.34 		Subd. 5.Improving graduation rates for students with emotional or behavioral 
32.35 	disorders. (a) A district must develop strategies in conjunction with parents of students 
32.36 	with emotional or behavioral disorders and the county board responsible for implementing 
33.1 	sections 245.487 to 245.4889 to keep students with emotional or behavioral disorders in 
33.2 	school, when the district has a drop-out rate for students with an emotional or behavioral 
33.3 	disorder in grades 9 through 12 exceeding 25 percent. 
33.4 	(b) A district must develop a plan in conjunction with parents of students with 
33.5 	emotional or behavioral disorders and the local mental health authority to increase the 
33.6 	graduation rates of students with emotional or behavioral disorders. A district with a 
33.7 	drop-out rate for children with an emotional or behavioral disturbance in grades 9 through 
33.8 	12 that is in the top 25 percent of all districts shall submit a plan for review and oversight 
33.9 	to the commissioner.

33.10 	EFFECTIVE DATE. Subdivision 3, paragraph (b), applies to students in the 
33.11 	2009-2010 school year and later. Subdivision 3, paragraph (c), applies to students in the 
33.12 	2010-2011 school year and later. Subdivision 4 applies in the 2011-2012 school year 
33.13 	and later.

33.14 	Sec. 7. Minnesota Statutes 2006, section 120B.36, as amended by Laws 2007, chapter 
33.15 	146, article 2, section 11, is amended to read:
33.16 	120B.36 SCHOOL ACCOUNTABILITY; APPEALS PROCESS.
33.17 		Subdivision 1.School performance report cards. (a) The commissioner shall use 
33.18 	objective criteria based on levels of student performance to report at least student academic 
33.19 	performance under section 120B.35, subdivision 2, a table showing the percentages 
33.20 	of students at and above the state growth norm under section 120B.35, subdivision 3, 
33.21 	paragraph (b), school safety, rigorous coursework under section 120B.35, subdivision 3, 
33.22 	paragraph (c), two separate student-to-teacher ratios that clearly indicate the definition of 
33.23 	teacher consistent with sections 122A.06 and 122A.15 for purposes of determining these 
33.24 	ratios, and staff characteristics excluding salaries, with a value-added component added no 
33.25 	later than the 2008-2009 school year student enrollment demographics, district mobility, 
33.26 	and extracurricular activities. The report must indicate a school's adequate yearly progress 
33.27 	status, and must not set any designations applicable to high- and low-performing schools 
33.28 	due solely to adequate yearly progress status.
33.29 	(b) The commissioner shall develop, annually update, and post on the department 
33.30 	Web site school performance report cards. 
33.31 	(c) The commissioner must make available the first performance report cards by 
33.32 	November 2003, and during the beginning of each school year thereafter.
34.1 	(d) A school or district may appeal its adequate yearly progress status in writing to 
34.2 	the commissioner within 30 days of receiving the notice of its status. The commissioner's 
34.3 	decision to uphold or deny an appeal is final.
34.4 	(e) School performance report cards card data are nonpublic data under section 
34.5 	13.02, subdivision 9, until not later than ten days after the appeal procedure described in 
34.6 	paragraph (d) concludes. The department shall annually post school performance report 
34.7 	cards to its public Web site no later than September 1. 
34.8 		Subd. 2.Adequate yearly progress data. All data the department receives, 
34.9 	collects, or creates for purposes of determining to determine adequate yearly progress 
34.10 	designations status under Public Law 107-110, section 1116, set state growth norms, and 
34.11 	determine student growth are nonpublic data under section 13.02, subdivision 9, until not 
34.12 	later than ten days after the appeal procedure described in subdivision 1, paragraph (d), 
34.13 	concludes. Districts must provide parents sufficiently detailed summary data to permit 
34.14 	parents to appeal under Public Law 107-110, section 1116(b)(2). The department shall 
34.15 	annually post federally mandated adequate yearly progress data and state student growth 
34.16 	data to its public Web site no later than September 1. 

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

34.18 	Sec. 8. Minnesota Statutes 2006, section 120B.362, is amended to read:
34.19 	120B.362 GROWTH-BASED VALUE-ADDED ASSESSMENT PROGRAM.
34.20 	(a) The commissioner of education must implement a growth-based value-added 
34.21 	assessment program to assist school districts, public schools, and charter schools in 
34.22 	assessing and reporting individual students' growth in academic achievement under section 
34.23 	120B.30, subdivision 1a. The program must use assessments of individual students' 
34.24 	academic achievement to make longitudinal comparisons of each student's academic 
34.25 	growth over time. School districts, public schools, and charter schools may apply to the 
34.26 	commissioner to participate in the initial trial program using a form and in the manner the 
34.27 	commissioner prescribes. The commissioner must select program participants from urban, 
34.28 	suburban, and rural areas throughout the state.
34.29 	(b) The commissioner may issue a request for proposals to contract with an 
34.30 	organization that provides a value-added assessment model that reliably estimates school 
34.31 	and school district effects on students' academic achievement over time. The model the 
34.32 	commissioner selects must accommodate diverse data and must use each student's test 
34.33 	data across grades. Data on individual teachers generated under the model are personnel 
34.34 	data under section 13.43.
35.1 	(c) The contract under paragraph (b) must be consistent with the definition of "best 
35.2 	value" under section 16C.02, subdivision 4.

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

35.4 	Sec. 9. Minnesota Statutes 2006, section 122A.21, is amended to read:
35.5 	122A.21 TEACHERS' AND ADMINISTRATORS' LICENSES; FEES; 
35.6 	LICENSURE VIA PORTFOLIO.
35.7 	(a) Each application for the issuance, renewal, or extension of a license to teach, 
35.8 	including candidates for licensure via portfolio under paragraph (b), must be accompanied 
35.9 	by a processing fee of $57. Each application for issuing, renewing, or extending the 
35.10 	license of a school administrator or supervisor must be accompanied by a processing fee 
35.11 	in the amount set by the Board of Teaching. The processing fee for a teacher's license and 
35.12 	for the licenses of supervisory personnel must be paid to the executive secretary of the 
35.13 	appropriate board. The executive secretary of the board shall deposit the fees with the 
35.14 	commissioner of finance. The fees as set by the board are nonrefundable for applicants not 
35.15 	qualifying for a license. However, a fee must be refunded by the commissioner of finance 
35.16 	in any case in which the applicant already holds a valid unexpired license. The board may 
35.17 	waive or reduce fees for applicants who apply at the same time for more than one license.
35.18 	(b) A qualified candidate may use licensure via portfolio to obtain an initial 
35.19 	licensure or to add a licensure field. A candidate for initial licensure must submit one 
35.20 	portfolio demonstrating pedagogical competence and one portfolio demonstrating 
35.21 	content competence consistent with the applicable Board of Teaching licensure rules. A 
35.22 	candidate seeking to add a licensure field must submit one portfolio demonstrating content 
35.23 	competence consistent with the Board of Teaching licensure rule. Candidates must 
35.24 	submit all portfolios to the Educator Licensing Division at the Minnesota Department of 
35.25 	Education. A candidate must pay a $500 fee for the first portfolio submitted for review and 
35.26 	a $250 fee for any portfolio submitted subsequently. The fees must be paid to the executive 
35.27 	secretary of the Board of Teaching. The revenue generated from the fee must be deposited 
35.28 	in an account in the state government special revenue fund. Money in the account, 
35.29 	including interest earned, is appropriated to the board for the operation of licensure via 
35.30 	portfolio. The fees as set by the board are nonrefundable for applicants not qualifying for 
35.31 	a license. The board may waive or reduce fees for candidates based on financial need.

35.32 	Sec. 10. Minnesota Statutes 2006, section 122A.415, is amended by adding a 
35.33 	subdivision to read:
36.1 		Subd. 4.Basic alternative teacher compensation aid. (a) For fiscal year 2010 
36.2 	and later, the basic alternative teacher compensation aid for a school district with a plan 
36.3 	approved under section 122A.414, subdivision 2b, equals 65 percent of the alternative 
36.4 	teacher compensation revenue under subdivision 1. The basic alternative teacher 
36.5 	compensation aid for an intermediate school district or charter school with a plan approved 
36.6 	under section 122A.414, subdivisions 2a and 2b, if the recipient is a charter school, equals 
36.7 	$260 times the number of pupils enrolled in the school on October 1 of the previous 
36.8 	fiscal year, or on October 1 of the current fiscal year for a charter school in the first year 
36.9 	of operation, times the ratio of the sum of the alternative teacher compensation aid and 
36.10 	alternative teacher compensation levy for all participating school districts to the maximum 
36.11 	alternative teacher compensation revenue for those districts under subdivision 1.
36.12 	(b) Notwithstanding paragraph (a) and subdivision 1, the state total basic alternative 
36.13 	teacher compensation aid entitlement must not exceed $46,781,000 for fiscal year 2010 
36.14 	and $46,538,000 for fiscal year 2011 and later. The commissioner must limit the amount 
36.15 	of alternative teacher compensation aid approved under this section so as not to exceed 
36.16 	these limits.

36.17 	EFFECTIVE DATE. This section is effective for revenue for fiscal year 2010 
36.18 	and later.

36.19 	Sec. 11. Minnesota Statutes 2006, section 122A.415, is amended by adding a 
36.20 	subdivision to read:
36.21 		Subd. 5.Alternative teacher compensation levy. For fiscal year 2010 and later, 
36.22 	the alternative teacher compensation levy for a district receiving basic alternative teacher 
36.23 	compensation aid equals the product of: (1) the difference between the district's alternative 
36.24 	teacher compensation revenue, under subdivision 1, and the district's basic alternative 
36.25 	teacher compensation aid, under subdivision 4; times (2) the lesser of one or the ratio of 
36.26 	the district's adjusted net tax capacity per adjusted pupil unit to $5,913.

36.27 	EFFECTIVE DATE. This section is effective for revenue for fiscal year 2010 
36.28 	and later.

36.29 	Sec. 12. Minnesota Statutes 2006, section 122A.415, is amended by adding a 
36.30 	subdivision to read:
36.31 		Subd. 6.Alternative teacher compensation aid. (a) For fiscal year 2010 and 
36.32 	later, a district's alternative teacher compensation equalization aid equals the district's 
36.33 	alternative teacher compensation revenue, minus the district's basic alternative teacher 
37.1 	compensation aid, minus the district's alternative teacher compensation levy. If a district 
37.2 	does not levy the entire amount permitted under subdivision 5, the alternative teacher 
37.3 	compensation equalization aid must be reduced in proportion to the actual amount levied.
37.4 	(b) A district's alternative teacher compensation aid equals the sum of the 
37.5 	district's basic alternative teacher compensation aid and the district's alternative teacher 
37.6 	compensation equalization aid.

37.7 	EFFECTIVE DATE. This section is effective for revenue for fiscal year 2010 
37.8 	and later.

37.9 	Sec. 13. Minnesota Statutes 2006, section 122A.72, is amended by adding a 
37.10 	subdivision to read:
37.11 		Subd. 6.Teacher institute functions. A teacher institute shall perform functions 
37.12 	according to this subdivision. The teacher institute shall assist teachers in providing 
37.13 	advanced training during the summer months to licensed mathematics and science 
37.14 	teachers in the areas of content knowledge and effective instruction practices. The teacher 
37.15 	may be eligible for graduate-level credits upon successful completion of the institute. The 
37.16 	application process and criteria for admission to the teacher institute shall be established 
37.17 	by the commissioner of education.

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

37.20 	Sec. 14. [123B.881] REGIONAL PUPIL TRANSPORTATION SERVICES.
37.21 	Three or more contiguous school districts in Hennepin County may enter into a 
37.22 	cooperative agreement to provide pupil transportation services upon a majority vote of 
37.23 	the school board. School districts that choose to participate in a cooperative agreement 
37.24 	under this section must agree to jointly provide transportation services to all students 
37.25 	who attend school in the participating school districts. School districts that choose to 
37.26 	participate in a cooperative agreement under this section may jointly operate bus garages 
37.27 	and maintenance facilities. School districts that agree to enter a cooperative agreement 
37.28 	under this section must report to the legislature by January 15 on the third year after 
37.29 	the inception of the cooperative agreement. The report must analyze the cost savings 
37.30 	and operating efficiencies to the districts, as well as the impacts on school bus drivers, 
37.31 	school bus maintenance workers, clerical workers, administrative workers, and technical 
37.32 	workers assigned to school bus duties.

38.1 	Sec. 15. Minnesota Statutes 2006, section 124D.09, subdivision 5, is amended to read:
38.2 		Subd. 5.Authorization; notification. Notwithstanding any other law to the 
38.3 	contrary, an 11th or 12th grade pupil enrolled in a school or an American Indian-controlled 
38.4 	tribal contract or grant school eligible for aid under section 124D.83, except a foreign 
38.5 	exchange pupil enrolled in a district under a cultural exchange program, may apply to an 
38.6 	eligible institution, as defined in subdivision 3, to enroll in nonsectarian courses offered by 
38.7 	that postsecondary institution. If an institution accepts a secondary pupil for enrollment 
38.8 	under this section, the institution shall send written notice to the pupil, the pupil's school 
38.9 	or school district, and the commissioner within ten days of acceptance. The notice must 
38.10 	indicate the course and hours of enrollment of that pupil. If the pupil enrolls in a course 
38.11 	for postsecondary credit only, the institution must notify the pupil about payment in the 
38.12 	customary manner used by the institution. 

38.13 	Sec. 16. Minnesota Statutes 2007 Supplement, section 124D.095, subdivision 3, 
38.14 	is amended to read:
38.15 		Subd. 3.Authorization; notice; limitations on enrollment. (a) A student may 
38.16 	apply for full-time enrollment in an approved online learning program under section 
38.17 	124D.03, 124D.08 or 124D.10, or for supplemental online learning. Notwithstanding 
38.18 	sections 124D.03, 124D.08, and 124D.10, procedures for enrolling in supplemental online 
38.19 	learning shall be as provided in this subdivision. A student age 17 or younger must 
38.20 	have the written consent of a parent or guardian to apply. No school district or charter 
38.21 	school may prohibit a student from applying to enroll in online learning. In order that a 
38.22 	student may enroll in online learning, the student and the student's parents must submit an 
38.23 	application to the online learning provider and identify the reason for enrolling in online 
38.24 	learning. The online learning provider that accepts a student under this section must within 
38.25 	ten days notify the student and the enrolling district in writing if the enrolling district is 
38.26 	not the online learning provider. The student and family must notify the online learning 
38.27 	provider of their intent to enroll in online learning within ten days of acceptance, at which 
38.28 	time the student and parent must sign a statement of assurance that they have reviewed the 
38.29 	online course or program and understand the expectations of online learning enrollment. 
38.30 	The online learning provider must notify the enrolling district of the student's enrollment
38.31 	application to enroll  in online learning in writing on a form provided by the department.
38.32 	(b) Supplemental online learning notification to the enrolling district upon student 
38.33 	enrollment in application to  the online learning program provider  will include the courses 
38.34 	or program, credits to be awarded, and the start date of online enrollment, and confirmation 
38.35 	that the courses will meet the student's graduation plan. An online learning provider 
39.1 	must make available to the enrolling district the course syllabus in a format established 
39.2 	by the commissioner that identifies the state standards met by the course, content 
39.3 	outline, assessment requirements, expectations for actual teacher contact time, other 
39.4 	student-to-teacher communication, and academic support for supplemental online courses 
39.5 	taken by students in the enrolling district. Within 15 days after the online learning provider 
39.6 	makes information in this paragraph available to the enrolling district, the enrolling district 
39.7 	must either confirm or deny to the online provider that the student, parent or guardian, and 
39.8 	enrolling district have agreed the courses meet the student's graduation requirements. An 
39.9 	online learning course or program that meets or exceeds a graduation standard or grade 
39.10 	progression requirements at the enrolling district as demonstrated on the online provider's 
39.11 	syllabus must be considered to meet the corresponding graduation requirements of the 
39.12 	student in the enrolling district. A student may enroll in supplemental online learning 
39.13 	courses up to the midpoint of the enrolling district's term. The enrolling district may waive 
39.14 	this requirement for special circumstances and upon acceptance by the online provider.
39.15 	 (c) An online learning provider must notify the commissioner that it is delivering 
39.16 	online learning and report the number of online learning students it is accepting and the 
39.17 	online learning courses and programs it is delivering.
39.18 	 (d) An online learning provider may limit enrollment if the provider's school board 
39.19 	or board of directors adopts by resolution specific standards for accepting and rejecting 
39.20 	students' applications.
39.21 	 (e) An enrolling district may reduce an online learning student's regular classroom 
39.22 	instructional membership in proportion to the student's membership in online learning 
39.23 	courses.
39.24 	(f) The online provider must report student progress to the student, parent or 
39.25 	guardian, and enrolling district in a manner specified by the commissioner unless 
39.26 	previously agreed upon by the enrolling district and the online provider. The enrolling 
39.27 	district must designate a contact person to assist in the facilitation and monitoring of 
39.28 	student progress. 

39.29 	Sec. 17. Minnesota Statutes 2007 Supplement, section 124D.095, subdivision 4, 
39.30 	is amended to read:
39.31 		Subd. 4.Online learning parameters. (a) An online learning student must receive 
39.32 	academic credit for completing the requirements of an online learning course or program. 
39.33 	Secondary credits granted to an online learning student must be counted toward the 
39.34 	graduation and credit requirements of the enrolling district. An online learning provider 
39.35 	must make available to the enrolling district the course syllabus, standard alignment, 
40.1 	content outline, assessment requirements, and contact information for supplemental online 
40.2 	courses taken by students in the enrolling district. The enrolling district must apply the 
40.3 	same graduation requirements to all students, including online learning students, and 
40.4 	must continue to provide nonacademic services to online learning students. If a student 
40.5 	completes an online learning course or program that meets or exceeds a graduation 
40.6 	standard or grade progression requirement at the enrolling district, that standard or 
40.7 	requirement is met. The enrolling district must use the same criteria for accepting online 
40.8 	learning credits or courses as it does for accepting credits or courses for transfer students 
40.9 	under section 124D.03, subdivision 9. The enrolling district may reduce the course 
40.10 	schedule of an online learning student in proportion to the number of online learning 
40.11 	courses the student takes from an online learning provider that is not the enrolling district.
40.12 	(b) An online learning student may:
40.13 	(1) enroll in supplemental online learning courses during a single school year to a 
40.14 	maximum of 50 percent of the student's full schedule of courses per term. A student may 
40.15 	exceed the supplemental online learning registration limit if the enrolling district grants 
40.16 	permission for supplemental online learning enrollment above the limit, or if an agreement 
40.17 	is made between the enrolling district and the online learning provider for instructional 
40.18 	services;
40.19 	(2) complete course work at a grade level that is different from the student's current 
40.20 	grade level; and
40.21 	(3) enroll in additional courses with the online learning provider under a separate 
40.22 	agreement that includes terms for payment of any tuition or course fees.
40.23 	(c) An online learning student has the same access to the computer hardware and 
40.24 	education software available in a school as all other students in the enrolling district. An 
40.25 	online learning provider must assist an online learning student whose family qualifies 
40.26 	for the education tax credit under section 290.0674 to acquire computer hardware and 
40.27 	educational software for online learning purposes.
40.28 	(d) An enrolling district or charter school may offer online learning to its enrolled 
40.29 	students. Such online learning does not generate online learning funds under this section. 
40.30 	An enrolling district or charter school that offers online learning only to its enrolled 
40.31 	students is not subject to the reporting requirements or review criteria under subdivision 7, 
40.32 	unless the enrolling district or charter school is a full-time online provider. A teacher with 
40.33 	a Minnesota license must assemble and deliver instruction to enrolled students receiving 
40.34 	online learning from an enrolling district or charter school. The delivery of instruction 
40.35 	occurs when the student interacts with the computer or the teacher and receives ongoing 
41.1 	assistance and assessment of learning. The instruction may include curriculum developed 
41.2 	by persons other than a teacher with a Minnesota license.
41.3 	(e) AnBoth full-time and supplemental online learning provider that is not the 
41.4 	enrolling district is providers are  subject to the reporting requirements and review criteria 
41.5 	under subdivision 7. A teacher with a Minnesota license must assemble and deliver 
41.6 	instruction to online learning students. The delivery of instruction occurs when the student 
41.7 	interacts with the computer or the teacher and receives ongoing assistance and assessment 
41.8 	of learning. The instruction may include curriculum developed by persons other than a 
41.9 	teacher with a Minnesota license. Unless the commissioner grants a waiver, a teacher 
41.10 	providing online learning instruction must not instruct more than 40 students in any one 
41.11 	online learning course or program.
41.12 	(f) To enroll in more than 50 percent of the student's full schedule of courses per term 
41.13 	in online learning, the student must qualify to exceed the supplemental online learning 
41.14 	registration limit under paragraph (b) or apply for enrollment to an approved full-time 
41.15 	online learning program following appropriate procedures in subdivision 3, paragraph (a). 
41.16 	Full-time online learning students may enroll in classes at a local school per contract for 
41.17 	instructional services between the online learning provider and the school district.

41.18 	Sec. 18. Minnesota Statutes 2007 Supplement, section 124D.095, subdivision 7, 
41.19 	is amended to read:
41.20 		Subd. 7.Department of Education. (a) The department must review and 
41.21 	certify online learning providers. The online learning courses and programs must be 
41.22 	rigorous, aligned with state academic standards, and contribute to grade progression 
41.23 	in a single subject. Online learning providers must demonstrate to the commissioner 
41.24 	that online learning courses have equivalent standards or instruction, curriculum, and 
41.25 	assessment requirements as other courses offered to enrolled students. The online 
41.26 	learning provider must also demonstrate expectations for actual teacher contact time 
41.27 	or other student-to-teacher communication  The online provider must provide written 
41.28 	assurance that all courses meet state academic standards, and that the online learning 
41.29 	curriculum, instruction and assessment, expectations for actual teacher contact time or 
41.30 	other student-to-teacher communication, and academic support meet nationally recognized 
41.31 	professional standards and are demonstrated as such in a syllabus provided according to 
41.32 	the commissioner's requirements. Once an online learning provider is approved under 
41.33 	this paragraph, all of its online learning course offerings are eligible for payment under 
41.34 	this section unless a course is successfully challenged by an enrolling district or the 
41.35 	department under paragraph (b).
42.1 	(b) An enrolling district may challenge the validity of a course offered by an online 
42.2 	learning provider. The department must review such challenges based on the certification 
42.3 	procedures under paragraph (a). The department may initiate its own review of the validity 
42.4 	of an online learning course offered by an online learning provider.
42.5 	(c) The department may collect a fee not to exceed $250 for certifying online 
42.6 	learning providers or $50 per course for reviewing a challenge by an enrolling district.
42.7 	(d) The department must develop, publish, and maintain a list of approved online 
42.8 	learning providers and online learning courses and programs that it has reviewed and 
42.9 	certified.

42.10 	Sec. 19. Minnesota Statutes 2006, section 124D.095, subdivision 10, is amended to 
42.11 	read:
42.12 		Subd. 10.Online Learning Advisory Council. (a) An Online Learning Advisory 
42.13 	Council is established under section 15.059, except that the term for each council member 
42.14 	shall be three years. The advisory council is composed of 12 members from throughout 
42.15 	the state who have demonstrated experience with or interest in online learning. The 
42.16 	members of the council shall be appointed by the commissioner. The advisory council 
42.17 	shall bring to the attention of the commissioner any matters related to online learning and 
42.18 	provide input to the department in matters related, but not restricted, to:
42.19 	(1) quality assurance;
42.20 	(2) teacher qualifications;
42.21 	(3) program approval;
42.22 	(4) special education;
42.23 	(5) attendance;
42.24 	(6) program design and requirements; and
42.25 	(7) fair and equal access to programs.
42.26 	(b) The Online Learning Advisory Council under this subdivision expires June 
42.27 	30, 2008.
42.28 	(b) Notwithstanding section 15.059, subdivision 5, the council expires June 30, 2009.

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

42.30 	Sec. 20. Laws 2007, chapter 146, article 2, section 46, subdivision 11, is amended to 
42.31 	read:
42.32 		Subd. 11. Statewide testing and reporting system. For the statewide testing and 
42.33 	reporting system under Minnesota Statutes, section 120B.30: 

43.1		$ 
	15,150,000
	..... 
	2008 
	
43.2
43.3		$ 
	15,150,000
13,000,000
	..... 
	2009 
	
43.4 	Any testing contracts awarded by the commissioner using appropriations in this 
43.5 	subdivision must include as part of that testing contract a method to vertically link testing 
43.6 	questions across grade levels for the purposes of working towards a statewide growth 
43.7 	model. 
43.8 	$1,150,000 each year is for the value-added index assessment model. 
43.9 	Any balance in the first year does not cancel but is available in the second year. 
43.10 	The base for fiscal year 2010 and later is $13,000,000.

43.11 	Sec. 21. Laws 2007, chapter 146, article 2, section 46, subdivision 13, is amended to 
43.12 	read:
43.13 		Subd. 13. Preadvanced placement, advanced placement, international 
43.14 	baccalaureate, and concurrent enrollment programs. For preadvanced placement, 
43.15 	advanced placement, international baccalaureate, and concurrent enrollment programs 
43.16 	under Minnesota Statutes, sections 120B.132 and 124D.091: 

43.17		$ 
	6,500,000
	..... 
	2008 
	
43.18		$ 
	6,500,000
	..... 
	2009 
	
43.19 	Of this amount, $2,500,000 each year is for concurrent enrollment program aid 
43.20 	under Minnesota Statutes, section 124D.091. If the appropriation is insufficient, the 
43.21 	commissioner must proportionately reduce the aid payment to each district. Any balance 
43.22 	in the first year does not cancel but is available in the second year.
43.23 	The base appropriation for fiscal year 2010 and later is $2,000,000This is a onetime 
43.24 	appropriation.

43.25 	Sec. 22. Laws 2007, chapter 146, article 2, section 46, subdivision 19, is amended to 
43.26 	read:
43.27 		Subd. 19. Educational Planning and Assessment System (EPAS) program. For 
43.28 	the Educational Planning and Assessment System (EPAS) program under Minnesota 
43.29 	Statutes, section 120B.128: 

43.30		$ 
	829,000 600,000
	..... 
	2008 
	
43.31		$ 
	829,000 400,000
	..... 
	2009 
	
43.32 	Any balance in the first year does not cancel but is available in the second year. 
43.33 	This is a onetime appropriation.

44.1 	Sec. 23. Laws 2007, chapter 146, article 2, section 46, subdivision 20, is amended to 
44.2 	read:
44.3 		Subd. 20. College-level examination program (CLEP). For the college-level 
44.4 	examination program (CLEP) under Minnesota Statutes, section 120B.131: 

44.5
44.6		$ 
	1,650,000
1,000,000
	..... 
	2008 
	
44.7
44.8		$ 
	1,650,000
500,000
	..... 
	2009 
	
44.9 	Any balance in the first year does not cancel but is available in the second year. 
44.10 	This is a onetime appropriation.

44.11 	Sec. 24. Laws 2007, chapter 146, article 3, section 23, subdivision 2, is amended to 
44.12 	read:
44.13 		Subd. 2. Report. (a) The task force must submit to the education policy and finance 
44.14 	committees of the legislature by February 15, 2008 2009, a report that identifies and 
44.15 	clearly and concisely explains each provision in state law or rule that exceeds or expands 
44.16 	upon a minimum federal requirement contained in law or regulation for providing special 
44.17 	education programs and services to eligible students. The report also must recommend 
44.18 	which state provisions statutes and rules that exceed or expand upon a minimum federal 
44.19 	requirement may be amended to conform with minimum federal requirements or made 
44.20 	more effective as determined by a majority of the task force members. The task force must 
44.21 	recommend rules governing the use of aversive and deprivation procedures by school 
44.22 	district employees or persons under contract with a school district. The task force expires 
44.23 	when it submits its report to the legislature. 
44.24 	(b) Consistent with subdivision 1, the Department of Education member of the 
44.25 	task force representing regulators shall be replaced with a parent advocate selected by a 
44.26 	statewide organization that advocates on behalf of families with children with disabilities.
44.27 	(c) The Department of Education must provide technical assistance at the request of 
44.28 	the task force.

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

44.30 	Sec. 25. Laws 2007, chapter 146, article 3, section 24, subdivision 9, is amended to 
44.31 	read:
44.32 		Subd. 9. Special Education Task Force. For the task force to compare federal 
44.33 	and state special education requirements: 

45.1		$ 
	20,000
	..... 
	2008 
	
45.2		$
	20,000
	.....
	2009
	
45.3 	This is a onetime appropriation.

45.4 	Sec. 26. IMPLEMENTING A STUDENT GROWTH-BASED VALUE-ADDED 
45.5 	SYSTEM.
 45.6 	(a) To implement the requirements of Minnesota Statutes, section 120B.35, 
45.7 	subdivision 3, paragraph (b), and to help parents and members of the public compare 
45.8 	the reported data, the commissioner must consult with a group of expert school district 
45.9 	assessment and evaluation staff, including a recognized Minnesota assessment group 
45.10 	composed of assessment and evaluation directors and staff and researchers under 
45.11 	Minnesota Statutes, section 120B.299, subdivision 6, and interested stakeholders, 
45.12 	including school superintendents, school principals, and school teachers to examine the 
45.13 	actual statewide performance of students using Minnesota's growth-based value-added 
45.14 	system and establish criteria for identifying schools and school districts that demonstrate 
45.15 	accelerated growth in order to advance educators' professional development and replicate 
45.16 	programs that succeed in meeting students' diverse learning needs.
45.17 	(b) The commissioner must submit a written report to the chairs and ranking 
45.18 	minority members of the education committees of the house of representatives and senate 
45.19 	by February 15, 2009, describing the criteria for identifying schools and school districts 
45.20 	that demonstrate accelerated growth.

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

45.23 	Sec. 27. GROWTH-BASED VALUE-ADDED SYSTEM.
 45.24 	The growth-based value-added system used by the commissioner of education to 
45.25 	comply with Minnesota Statutes, section 120B.35, subdivision 3, paragraph (b), must be 
45.26 	consistent with the growth-based value-added model contained in the document labeled 
45.27 	"Educational Report Card Growth Model, 2008." The document must be deposited with 
45.28 	the Minnesota Office of the Revisor of Statutes, the Minnesota Legislative Reference 
45.29 	Library, and the Minnesota State Law Library, where the document shall be maintained 
45.30 	until the commissioner implements the growth-based value-added system under 
45.31 	Minnesota Statutes, section 120B.35, subdivision 3, paragraph (b). The recognized 
45.32 	Minnesota assessment group composed of assessment and evaluation directors and 
45.33 	staff and researchers under Minnesota Statutes, section 120B.299, subdivision 6, must 
46.1 	determine whether the growth-based value-added model the commissioner uses to comply 
46.2 	with Minnesota Statutes, section 120B.35, subdivision 3, paragraph (b), is consistent with 
46.3 	the deposited document and report its determination to the education committees of the 
46.4 	house of representatives and senate by February 15, 2009.

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

46.6 	Sec. 28. SCHOOL DISTRICT PLANS TO IMPROVE STUDENTS' ACADEMIC 
46.7 	ACHIEVEMENT.
 46.8 		Subdivision 1.District academic achievement plan; priorities. (a) A school 
46.9 	district experiencing disparities in academic achievement must develop a plan to 
46.10 	significantly improve students' academic achievement using concrete measures to 
46.11 	eliminate differences in academic performance among groups of students defined by 
46.12 	race, ethnicity, and income. The plan must:
46.13 	(1) reflect a research-based understanding of high-performing educational systems 
46.14 	and best educational practices;
46.15 	(2) include innovative and practical strategies and programs, whether existing or 
46.16 	new, that supplement district initiatives to increase students' academic achievement under 
46.17 	state and federal educational accountability requirements; and
46.18 	(3) contain valid and reliable measures of student achievement that the district uses 
46.19 	to demonstrate the efficacy of the district plan to the commissioner of education.
46.20 	(b) A district must address the elements considered by the advisory task force on 
46.21 	improving students' academic achievement, to the extent those elements are implicated in 
46.22 	the district's plan.
46.23 	(c) The district must include with the plan the amount of expenditures necessary 
46.24 	to implement the plan. The district must indicate how current resources are used to 
46.25 	implement the plan, including, but not limited to, state-limited English proficiency aid 
46.26 	under Minnesota Statutes, section 124D.65; integration revenue under Minnesota Statutes, 
46.27 	section 124D.86; early childhood family education revenue under Minnesota Statutes, 
46.28 	section 124D.135; school readiness aid under Minnesota Statutes, section 124D.16; basic 
46.29 	skills revenue under Minnesota Statutes, section 126C.10, subdivision 4; extended time 
46.30 	revenue under Minnesota Statutes, section 126C.10, subdivision 2a; and alternative 
46.31 	compensation revenue under Minnesota Statutes, section 122A.415.
46.32 		Subd. 2.Plan. (a) A school district by October 1, 2008, must submit its plan in 
46.33 	electronic format to the commissioner of education, consistent with subdivision 1.
46.34 	(b) The commissioner must analyze the commonalities and differences of the district 
46.35 	plans and submit the analysis and underlying data to the advisory task force on improving 
47.1 	students' academic achievement by November 1, 2008, and also report the substance of 
47.2 	the analyses to the education policy and finance committees of the legislature by January 
47.3 	1, 2009.
47.4 	(c) A school district that submits a plan must be given priority in funding if the 
47.5 	legislature provides funding for implementing the plans.

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

47.7 	Sec. 29. ADVISORY TASK FORCE ON IMPROVING STUDENTS' 
47.8 	ACADEMIC ACHIEVEMENT.
 47.9 	(a) An advisory task force on improving students' academic achievement is 
47.10 	established to review the plans submitted to the commissioner of education and 
47.11 	recommend to the education committees of the legislature a proposal for improving 
47.12 	students' academic achievement and eliminating differences in academic performance 
47.13 	among groups of students defined by race, ethnicity, and income. The task force members 
47.14 	must at least consider how the following education-related issues impact the educational 
47.15 	achievement of low-income and minority students:
47.16 	(1) rigorous preparation and coursework and how to (i) effectively invest in early 
47.17 	childhood and parent education, (ii) impose academic rigor and high expectations on 
47.18 	elementary and secondary students in low-income and minority schools, and (iii) provide 
47.19 	parents, educators, and community members with meaningful opportunities to collaborate 
47.20 	in educating students in low-income and minority schools;
47.21 	(2) professional development for educators and how to (i) provide stronger financial 
47.22 	and professional incentives to attract and retain experienced, bilingual, and culturally 
47.23 	competent teachers and administrators in low-income and minority schools, (ii) recruit and 
47.24 	retain teachers of color, and (iii) develop and include cultural sensitivity and interpersonal 
47.25 	and pedagogical skills training that teachers need for effective intercultural teaching;
47.26 	(3) English language learners and how to (i) use well designed tests, curricula, 
47.27 	and English as a second language programs and services as diagnostic tools to develop 
47.28 	effective student interventions, (ii) monitor students' language capabilities, (iii) provide 
47.29 	academic instruction in English that supports students' learning and is appropriate 
47.30 	for students' level of language proficiency, and (iv) incorporate the perspectives and 
47.31 	contributions of ethnic and racial groups, consistent with Minnesota Statutes, section 
47.32 	120B.022, subdivision 1, paragraph (b);
47.33 	(4) special education and how to (i) incorporate linguistic and cultural sensitivity 
47.34 	into special education diagnosis and referral, (ii) increase the frequency and quality of 
48.1 	prereferral interventions, and (iii) decrease the number of minority and nonnative English 
48.2 	speaking students inappropriately placed in special education;
48.3 	(5) GRAD tests and how to (i) incorporate linguistic and cultural sensitivity into the 
48.4 	reading and math GRAD tests, and (ii) develop interventions to meet students' learning 
48.5 	needs; and
48.6 	(6) valid and reliable data and how to use data on student on-time graduation rates, 
48.7 	student dropout rates, documented disciplinary actions, and completed and rigorous course 
48.8 	work indicators to determine how well-prepared low-income and minority students are for 
48.9 	postsecondary academic and career opportunities.
48.10 	The task force also must examine the findings of a 2008 report by Minnesota 
48.11 	superintendents on strategies for creating a world-class educational system to establish 
48.12 	priorities for improving students' academic achievement. The task force may consider 
48.13 	other related matters at its discretion.
48.14 	(b) The commissioner of education must convene the first meeting of the advisory 
48.15 	task force on improving students' academic achievement by July 1, 2008. The task force 
48.16 	members must select a chair from their membership at the first meeting and adopt internal 
48.17 	standards for subsequent meetings. The task force is composed of the following members:
48.18 	(1) a representative from a Twin Cities metropolitan area school district, a suburban 
48.19 	school district, a school district located in a regional center, and a rural school district, all 
48.20 	four representatives appointed by the state demographer based on identified concentrations 
48.21 	of low-income, minority, and low performing students;
48.22 	(2) a faculty member of a teacher preparation program at the University of 
48.23 	Minnesota's college of education and human development, appointed by the college dean 
48.24 	or the dean's designee;
48.25 	(3) a faculty member from the urban teachers program at Metropolitan State 
48.26 	University appointed by the university president or the president's designee;
48.27 	(4) a faculty member from a MnSCU teacher preparation program located outside 
48.28 	the Twin Cities metropolitan area, appointed by the university president or the president's 
48.29 	designee;
48.30 	(5) a classroom teacher appointed by Education Minnesota;
48.31 	(6) an expert in early childhood care and education appointed by a state early 
48.32 	childhood organization;
48.33 	(7) a member from each state council representing a community of color, appointed 
48.34 	by the respective council;
48.35 	(8) a curriculum specialist with expertise in providing language instruction for 
48.36 	nonnative English speakers, appointed by a state curriculum organization;
49.1 	(9) a special education teacher, appointed by a state organization of special education 
49.2 	educators;
49.3 	(10) a parent of color, appointed by a state parent-teacher organization;
49.4 	(11) a district testing director appointed by a recognized Minnesota assessment 
49.5 	group composed of assessment and evaluation directors and staff and researchers; and
49.6 	(12) a Minnesota Department of Education staff person with expertise in school 
49.7 	desegregation matters appointed by the commissioner of education or the commissioner's 
49.8 	designee.
49.9 	A majority of task force members, at their discretion, may invite other representatives 
49.10 	of interested public or nonpublic organizations, Minnesota's business community, 
49.11 	Minnesota private colleges, Minnesota's communities of color, and stakeholders in local 
49.12 	and state educational equity to become task force members.
49.13 	(c) Task force members' terms and other task force matters are subject to Minnesota 
49.14 	Statutes, section 15.059, except that the commissioner may reimburse task force members 
49.15 	for expenses from the Department of Education's current operating budget but may not 
49.16 	provide compensation to task force members for task force activities. By February 15, 
49.17 	2009, the task force must submit a written proposal, including draft legislation, to the 
49.18 	chairs and ranking minority members of the education policy and finance committees 
49.19 	and divisions of the legislature on how to significantly improve students' academic 
49.20 	achievement.
49.21 	(d) The advisory task force expires on February 16, 2009, or on the date the report 
49.22 	required under this section is submitted, whichever is later.

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

49.24 	Sec. 30. APPROPRIATIONS.
 49.25 		Subdivision 1.Department of Education. The sums indicated in this section are 
49.26 	appropriated from the general fund to the Department of Education for the fiscal years 
49.27 	designated.
49.28 		Subd. 2.Minnesota virtual education program. To develop and administer the 
49.29 	Minnesota virtual education program under Minnesota Statutes, section 120B.17:

49.30		$
	200,000
	.....
	2009
	
49.31 		Subd. 3.Mathematics and science teacher centers and institutes. For 
49.32 	mathematics and science teacher centers and institutes:

49.33		$
	400,000
	.....
	2009
	
50.1 		Subd. 4.Best practices. (a) For best practices grants:

50.2		$
	910,000
	.....
	2009
	
50.3 	(b) $275,000 is for a grant to the Minnesota Humanities Commission under 
50.4 	Minnesota Statutes, section 138.911.
50.5 	(c) $200,000 is for a grant to the Minnesota Historical Society.
50.6 	(d) $160,000 is for a grant to A Chance to Grow/New Visions for the Minnesota 
50.7 	Learning Resource Center's comprehensive training program for education professionals 
50.8 	charged with helping children acquire basic reading and mathematic skills.
50.9 	(e) $275,000 is for the Principal's Leadership Institute under Minnesota Statutes, 
50.10 	section 122A.74.
50.11 	(f) This is a onetime appropriation.

50.12 	ARTICLE 3
50.13 	FACILITIES AND ACCOUNTING

50.14 	Section 1. Minnesota Statutes 2007 Supplement, section 123B.54, is amended to read:
50.15 	123B.54 DEBT SERVICE APPROPRIATION.
50.16 	(a) $14,813,000 $14,814,000 in fiscal year 2008, $11,124,000 $9,109,000 in fiscal 
50.17 	year 2009, $8,866,000 $7,286,000 in fiscal year 2010, and $6,631,000 $6,878,000 in 
50.18 	fiscal year 2011 and later are appropriated from the general fund to the commissioner of 
50.19 	education for payment of debt service equalization aid under section 123B.53.
50.20 	(b) The appropriations in paragraph (a) must be reduced by the amount of any 
50.21 	money specifically appropriated for the same purpose in any year from any state fund.

50.22 	Sec. 2. Minnesota Statutes 2006, section 123B.62, is amended to read:
50.23 	123B.62 BONDS FOR CERTAIN CAPITAL FACILITIES.
50.24 	(a) In addition to other bonding authority, with approval of the commissioner, a 
50.25 	district may issue general obligation bonds for certain capital projects under this section. 
50.26 	The bonds must be used only to make capital improvements including:
50.27 	(1) under section 126C.10, subdivision 14, total operating capital revenue uses 
50.28 	specified in clauses (4), (6), (7), (8), (9), and (10); 
50.29 	(2) the cost of energy modifications;
50.30 	(3) improving disability accessibility to school buildings; and
50.31 	(4) bringing school buildings into compliance with life and safety codes and fire 
50.32 	codes.; and
50.33 	(5) modifying buildings and equipment for security.
51.1 	(b) Before a district issues bonds under this subdivision, it must publish notice 
51.2 	of the intended projects, the amount of the bond issue, and the total amount of district 
51.3 	indebtedness.
51.4 	(c) A bond issue tentatively authorized by the board under this subdivision becomes 
51.5 	finally authorized unless a petition signed by more than 15 percent of the registered voters 
51.6 	of the district is filed with the school board within 30 days of the board's adoption of a 
51.7 	resolution stating the board's intention to issue bonds. The percentage is to be determined 
51.8 	with reference to the number of registered voters in the district on the last day before the 
51.9 	petition is filed with the board. The petition must call for a referendum on the question of 
51.10 	whether to issue the bonds for the projects under this section. The approval of 50 percent 
51.11 	plus one of those voting on the question is required to pass a referendum authorized 
51.12 	by this section.
51.13 	(d) The bonds must be paid off within ten15 years of issuance. The bonds must be 
51.14 	issued in compliance with chapter 475, except as otherwise provided in this section. A tax 
51.15 	levy must be made for the payment of principal and interest on the bonds in accordance 
51.16 	with section 475.61. The sum of the tax levies under this section and section 123B.61 for 
51.17 	each year must not exceed the limit specified in section 123B.61. The levy for each year 
51.18 	must be reduced as provided in section 123B.61. A district using an excess amount in the 
51.19 	debt redemption fund to retire the bonds shall report the amount used for this purpose to 
51.20 	the commissioner by July 15 of the following fiscal year. A district having an outstanding 
51.21 	capital loan under section 126C.69 or an outstanding debt service loan under section 
51.22 	126C.68 must not use an excess amount in the debt redemption fund to retire the bonds. 
51.23 	(e) Notwithstanding paragraph (d), bonds issued by a district within the first 
51.24 	five years following voter approval of a combination according to section 123A.37, 
51.25 	subdivision 2, must be paid off within 20 years of issuance. All the other provisions and 
51.26 	limitation of paragraph (d) apply. 

51.27 	Sec. 3. Minnesota Statutes 2006, section 126C.45, is amended to read:
51.28 	126C.45 ICE ARENA LEVY.
51.29 	(a) Each year, an independent school district operating and maintaining an ice arena, 
51.30 	may levy for the net operational costs of the ice arena. The levy may not exceed 90 
51.31 	percent of the net actual costs of operation of the arena for the previous year. Net actual 
51.32 	costs are defined as operating costs less any operating revenues.
51.33 	(b) Any district operating and maintaining an ice arena must demonstrate to the 
51.34 	satisfaction of the Office of Monitoring in the department that the district will offer equal 
51.35 	sports opportunities for male and female students to use its ice arena, particularly in areas 
52.1 	of access to prime practice time, team support, and providing junior varsity and younger 
52.2 	level teams for girls' ice sports and ice sports offerings.

52.3 	Sec. 4. FUND TRANSFER.
 52.4 		Subdivision 1.Balaton. Notwithstanding Minnesota Statutes, section 123B.79 or 
52.5 	123B.80, on June 30, 2008, Independent School District No. 411, Balaton, may transfer 
52.6 	up to $70,000 from its reserved for operating capital account to its undesignated general 
52.7 	fund balance without making a levy reduction.
52.8 		Subd. 2.East Central School District. Notwithstanding Minnesota Statutes, 
52.9 	section 123B.79 or 123B.80, on June 30, 2008, Independent School District No. 2580, 
52.10 	East Central, may transfer up to $300,000 from its reserved for operating capital account 
52.11 	to its undesignated general fund balance without making a levy reduction.
52.12 		Subd. 3.Hills-Beaver Creek. (a) Notwithstanding Minnesota Statutes, section 
52.13 	123B.79 or 123B.80, on June 30, 2008, Independent School District No. 671, Hills-Beaver 
52.14 	Creek, may transfer up to $260,000 from its reserved for disabled accessibility account to 
52.15 	its undesignated general fund balance without making a levy reduction.
52.16 	(b) Notwithstanding Minnesota Statutes, section 123B.79 or 123B.80, on June 
52.17 	30, 2008, Independent School District No. 671, Hills-Beaver Creek, may transfer up to 
52.18 	$100,000 from its reserved for operating capital account to its undesignated general fund 
52.19 	balance without making a levy reduction.
52.20 		Subd. 4.Rocori School District. Notwithstanding Minnesota Statutes, section 
52.21 	123B.79 or 123B.80, on June 30, 2008, Independent School District No. 750, Rocori, 
52.22 	may transfer up to $82,000 from its reserved for disabled accessibility account to its 
52.23 	undesignated general fund balance without making a levy reduction.
52.24 		Subd. 5.Virginia. Notwithstanding Minnesota Statutes, sections 123B.79, 123B.80, 
52.25 	and 475.61, subdivision 4, on June 30, 2008, Independent School District No. 706, 
52.26 	Virginia, may transfer up to $100,000 from its debt redemption fund to its undesignated 
52.27 	general fund balance without making a levy reduction.

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

52.29 	Sec. 5. ALTERNATIVE FACILITIES REVENUE PROGRAM.
 52.30 	Notwithstanding the square foot limitations in Minnesota Statutes, section 123B.59, 
52.31 	subdivision 1, paragraph (a), clause (2), Independent School District No. 623, Roseville, 
52.32 	is eligible for the alternative facilities bonding and levy program as if the district has met 
52.33 	the square foot requirements of that program. 

53.1 	ARTICLE 4
53.2 	NUTRITION

53.3 	Section 1. Minnesota Statutes 2006, section 124D.118, subdivision 4, is amended to 
53.4 	read:
53.5 		Subd. 4.Reimbursement. In accordance with program guidelines, the 
53.6 	commissioner shall reimburse each participating public or nonpublic school 1420 cents 
53.7 	for each half-pint of milk that is served to kindergarten students and is not part of a school 
53.8 	lunch or breakfast reimbursed under section 124D.111 or 124D.1158.

53.9 	Sec. 2. Laws 2007, chapter 146, article 5, section 13, subdivision 3, is amended to read:
53.10 		Subd. 3. Traditional school breakfast; kindergarten milk. For traditional school 
53.11 	breakfast aid and kindergarten milk under Minnesota Statutes, sections 124D.1158 and 
53.12 	124D.118: 

53.13
53.14		$ 
	5,460,000
5,583,000
	..... 
	2008 
	
53.15
53.16		$ 
	5,695,000
6,396,000
	..... 
	2009 

53.17 	ARTICLE 5
53.18 	STATE AGENCIES

53.19 	Section 1. [124D.805] COMMITTEE ON AMERICAN INDIAN EDUCATION 
53.20 	PROGRAMS.
53.21 		Subdivision 1.Establishment. The commissioner of education shall create an 
53.22 	American Indian education committee. The commissioner must appoint the members 
53.23 	of the committee. Members must include representatives of tribal bodies, community 
53.24 	groups, parents of children eligible to be served by the programs, American Indian 
53.25 	administrators and teachers, persons experienced in the training of teachers for American 
53.26 	Indian education programs, persons involved in programs for American Indian children 
53.27 	in American Indian schools, and persons knowledgeable in the field of American Indian 
53.28 	education. Appointed members shall be representative of significant segments of the 
53.29 	population of American Indians.
53.30 		Subd. 2.Committee to advise commissioner. The committee on American 
53.31 	Indian education programs shall advise the commissioner in the administration of the 
53.32 	commissioner's duties under sections 124D.71 to 124D.82 and other programs for the 
53.33 	education of American Indian people as determined by the commissioner.
54.1 		Subd. 3.Expenses. The committee members must not be reimbursed for expenses. 
54.2 	The commissioner must determine the membership terms and the duration of the 
54.3 	committee, which expire no later than June 30, 2020.

54.4 	Sec. 2. Laws 2007, chapter 146, article 7, section 4, is amended to read:
54.5 	Sec. 4. APPROPRIATIONS; DEPARTMENT OF EDUCATION.
 54.6 		Subdivision 1. Department of Education. Unless otherwise indicated, the sums 
54.7 	indicated in this section are appropriated from the general fund to the Department of 
54.8 	Education for the fiscal years designated. 
54.9 		Subd. 2. Department. (a) For the Department of Education: 

54.10		$ 
	22,169,000
	..... 
	2008 
	
54.11
54.12		$ 
	22,653,000
22,207,000
	..... 
	2009 
	
54.13 	Any balance in the first year does not cancel but is available in the second year. 
54.14 	(b) $7,000 in fiscal year 2008 is for GRAD test rulemaking. 
54.15 	(c) $7,000 in fiscal year 2008 is for rulemaking under section 3. 
54.16 	(d) $40,000 each year is for an early hearing loss intervention coordinator under 
54.17 	Minnesota Statutes, section 125A.63, subdivision 5. If the department expends federal 
54.18 	funds to employ a hearing loss coordinator under Minnesota Statutes, section 125.63, 
54.19 	subdivision 5, then the appropriation under this paragraph is reallocated for purposes of 
54.20 	employing a world languages coordinator. 
54.21 	(e) $260,000 each year is for the Minnesota Children's Museum. 
54.22 	(f) $41,000 each year is for the Minnesota Academy of Science. 
54.23 	(g) $619,000 in fiscal year 2008 and $632,000 in fiscal year 2009 are for the Board 
54.24 	of Teaching. 
54.25 	(h) $163,000 in fiscal year 2008 and $171,000 in fiscal year 2009 are for the Board 
54.26 	of School Administrators. 
54.27 	(i) $50,000 each year is for the Duluth Children's Museum. 
54.28 	(j) The expenditures of federal grants and aids as shown in the biennial budget 
54.29 	document and its supplements are approved and appropriated and shall be spent as 
54.30 	indicated. 
54.31 	(k) None of the amounts appropriated under this subdivision may be used for 
54.32 	Minnesota's Washington, D.C., office.
54.33 	(l) $20,000 in fiscal year 2009 is for the outdoor education working group. 
54.34 	(m) $112,000 in fiscal year 2009 is for the administration of the online learning 
54.35 	program.
55.1 	(n) $6,000 in fiscal year 2009 is for the Online Learning Advisory Council.
55.2 	(o) $50,000 in fiscal year 2009 is for the State Advisory Board on Early Learning.
55.3 	(p) $188,000 in fiscal year 2009 is for the administration of the school performance 
55.4 	report card.
55.5 	(q) $100,000 in fiscal year 2009 is for the academic achievement plan. The 
55.6 	department shall not expend any funds unless a match of an equal amount of nonstate 
55.7 	funds has been received.
55.8 	(r) The base for fiscal year 2010 and later is $21,914,000.

55.9 	Sec. 3. OUTDOOR EDUCATION WORKING GROUP.
 55.10 	(a) The commissioner of natural resources shall coordinate a working group with the 
55.11 	commissioner of education to report recommendations to the legislature on the teaching of 
55.12 	outdoor education in grades 7 through 12. 
55.13 	(b) Each commissioner shall designate members of the working group and shall 
55.14 	include at least one parent, one representative of higher education, one outdoor educator, 
55.15 	and one representative from a sportsman or wildlife organization. The appointments and 
55.16 	designations must be completed by August 1, 2008. 
55.17 	(c) The working group must report recommendations, proposed changes, sources 
55.18 	of funding, and draft legislation to the legislative committees with jurisdiction over 
55.19 	kindergarten through grade 12 education policy and finance, and environment policy and 
55.20 	environment finance by January 15, 2009. The working group expires June 30, 2009.

55.21 	ARTICLE 6
55.22 	LIFELONG LEARNING

55.23 	Section 1. Minnesota Statutes 2006, section 121A.19, is amended to read:
55.24 	121A.19 DEVELOPMENTAL SCREENING AID.
55.25 	Each school year, the state must pay a district  for each  child or student screened by 
55.26 	the district  according to the requirements of section 121A.17. The amount of state aid 
55.27 	for each child or student screened shall be: (1) $50 $75 for a child screened at age three; 
55.28 	(2) $40 $50 for a child screened at age four; (3) $30 $40 for a child screened at age five 
55.29 	or six prior to kindergarten; and (4) $30 for a student screened within 30 days after first 
55.30 	enrolling in a public school kindergarten if the student has not previously been screened 
55.31 	according to the requirements of section 121A.17. If this amount of aid is insufficient, 
55.32 	the district may permanently transfer from the general fund an amount that, when added 
55.33 	to the aid, is sufficient. Developmental screening aid shall not be paid for any student 
55.34 	who is screened more than 30 days after the first day of attendance at a public school 
56.1 	kindergarten, except if a student transfers to another public school kindergarten within 
56.2 	30 days after first enrolling in a Minnesota public school kindergarten program. In this 
56.3 	case, if the student has not been screened, the district to which the student transfers may 
56.4 	receive developmental screening aid for screening that student when the screening is 
56.5 	performed within 30 days of the transfer date.

56.6 	Sec. 2. Minnesota Statutes 2007 Supplement, section 124D.531, subdivision 1, is 
56.7 	amended to read:
56.8 		Subdivision 1.State total adult basic education aid. (a) The state total adult basic 
56.9 	education aid for fiscal year 2005 is $36,509,000. The state total adult basic education 
56.10 	aid for fiscal year 2006  equals $36,587,000 plus any amount that is not paid for during 
56.11 	the previous fiscal year, as a result of adjustments under subdivision 4, paragraph (a), or 
56.12 	section 124D.52, subdivision 3. The state total adult basic education aid for fiscal year 
56.13 	2007 equals $37,673,000 plus any amount that is not paid for during the previous fiscal 
56.14 	year, as a result of adjustments under subdivision 4, paragraph (a), or section 124D.52, 
56.15 	subdivision 3. The state total adult basic education aid for fiscal year 2008 equals 
56.16 	$40,650,000, plus any amount that is not paid during the previous fiscal year as a result of 
56.17 	adjustments under subdivision 4, paragraph (a), or section 124D.52, subdivision 3. The 
56.18 	state total adult basic education aid for later fiscal years equals:
56.19 	(1) the state total adult basic education aid for the preceding fiscal year plus any 
56.20 	amount that is not paid for during the previous fiscal year, as a result of adjustments under 
56.21 	subdivision 4, paragraph (a), or section 124D.52, subdivision 3; times
56.22 	(2) the lesser of:
56.23 	(i) 1.03; or
56.24 	(ii) the greater of 1.00 or the ratio of the state total contact hours in the first prior 
56.25 	program year to the state total contact hours in the second prior program year the average 
56.26 	growth in state total contact hours over the prior ten program years.
56.27 	Beginning in fiscal year 2002, two percent of the state total adult basic education 
56.28 	aid must be set aside for adult basic education supplemental service grants under section 
56.29 	124D.522.
56.30 	(b) The state total adult basic education aid, excluding basic population aid, equals 
56.31 	the difference between the amount computed in paragraph (a), and the state total basic 
56.32 	population aid under subdivision 2.

56.33 	Sec. 3. Laws 2007, chapter 146, article 5, section 11, subdivision 1, is amended to read:
57.1 		Subdivision 1. Fiscal year 2007 replacement aid.  Independent School District No. 
57.2 	2899, Plainview-Elgin-Millville, is eligible for replacement aidrevenue to offset its excess 
57.3 	fund balance penalty for fiscal year 2007. The aid adjustment must be made under Laws 
57.4 	2007, chapter 146, article 5, section 13, subdivision 5.  The levy adjustment of $6,600 
57.5 	must be included as part of the district's property taxes for taxes payable in 2009.

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

57.7 	Sec. 4. Laws 2007, chapter 146, article 9, section 17, subdivision 4, is amended to read:
57.8 		Subd. 4. Health and developmental screening aid. For health and developmental 
57.9 	screening aid under Minnesota Statutes, sections 121A.17 and 121A.19: 

57.10
57.11		$ 
	3,159,000
2,624,000
	..... 
	2008 
	
57.12
57.13		$ 
	3,330,000
3,592,000
	..... 
	2009 
	
57.14 	The 2008 appropriation includes $288,000 for 2007 and $2,871,000 $2,336,000
57.15 	for 2008. 
57.16 	The 2009 appropriation includes $319,000 $259,000 for 2008 and $3,011,000
57.17 	$3,333,000 for 2009. 

57.18 	Sec. 5. STATE ADVISORY BOARD ON EARLY LEARNING.
 57.19 		Subdivision 1.Establishment. A 12-member State Advisory Board on Early 
57.20 	Learning is established to make recommendations on the most efficient and effective way 
57.21 	to leverage state and federal funding streams for early childhood and child care programs. 
57.22 	The board must also consider the feasibility of coordinating or colocating early childhood 
57.23 	and child care programs in one state Office of Early Learning. The board shall also 
57.24 	review the Minnesota Early Learning Foundation recommendations and determine what 
57.25 	legislative changes, if any, need to be enacted and make recommendations by February 
57.26 	1 of each year to the governor and legislature, including proposed legislation on how to 
57.27 	most effectively create a high quality early childhood system in Minnesota in order to 
57.28 	improve the educational outcomes of children.
57.29 		Subd. 2.Board members; terms. (a) The advisory board includes the following 
57.30 	12 members:
57.31 	(1) the commissioner of employment and economic development or the 
57.32 	commissioner's designee;
57.33 	(2) the commissioner of health or the commissioner's designee;
57.34 	(3) the commissioner of education or the commissioner's designee;
58.1 	(4) the commissioner of human services or the commissioner's designee;
58.2 	(5) four public members who are recognized experts in early care and education, 
58.3 	including one member appointed by the speaker of the house, one member appointed by 
58.4 	the minority leader of the house, one member appointed by the majority leader of the 
58.5 	senate, and one member appointed by the minority leader of the senate;
58.6 	(6) two public members who are community or business leaders, including one 
58.7 	member appointed by the speaker of the house and one member appointed by the majority 
58.8 	leader of the senate; and
58.9 	(7) two parents, with at least one child under the age of six, appointed by the 
58.10 	governor.
58.11 	(b) Members appointed by the majority and minority leaders in the house and senate 
58.12 	serve three-year terms. Board members must nominate and elect a chair and other officers 
58.13 	from among the public members. Meetings shall be called by the chair or at the written 
58.14 	request of any three members. Members' terms, compensation, removal, and vacancies 
58.15 	are governed by Minnesota Statutes, section 15.0575, except that board members must 
58.16 	not be paid a per diem or reimbursed for any expenses associated with their membership 
58.17 	on the board.
58.18 	(c) Appointing authorities must use their best efforts to ensure that the public 
58.19 	members of the board represent the communities of color.
58.20 		Subd. 3.Board expiration. The State Advisory Board on Early Learning expires 
58.21 	January 1, 2013.

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

58.23 	ARTICLE 7
58.24 	PREKINDERGARTEN THROUGH GRADE 12 EDUCATION
58.25 	FORECAST ADJUSTMENTS
58.26 	A. GENERAL EDUCATION

58.27 	Section 1. Laws 2007, chapter 146, article 1, section 24, subdivision 3, is amended to 
58.28 	read:
58.29 		Subd. 3. Referendum tax base replacement aid. For referendum tax base 
58.30 	replacement aid under Minnesota Statutes, section 126C.17, subdivision 7a:

58.31		$ 
	870,000861,000
	..... 
	2008 
	
58.32 	The 2008 appropriation includes $870,000 $861,000 for 2007 and $0 for 2008.

58.33 	Sec. 2. Laws 2007, chapter 146, article 1, section 24, subdivision 4, is amended to read:
59.1 		Subd. 4. Enrollment options transportation. For transportation of pupils attending 
59.2 	postsecondary institutions under Minnesota Statutes, section 124D.09, or for transportation 
59.3 	of pupils attending nonresident districts under Minnesota Statutes, section 124D.03:

59.4		$ 
	95,00048,000
	..... 
	2008 
	
59.5		$ 
	97,00050,000
	..... 
	2009 

59.6 	Sec. 3. Laws 2007, chapter 146, article 1, section 24, subdivision 5, is amended to read:
59.7 		Subd. 5. Abatement revenue. For abatement aid under Minnesota Statutes, section 
59.8 	127A.49:

59.959.10
		$ 
	1,343,000
1,333,000
	..... 
	2008 
	
59.11
59.12		$ 
	1,347,000
1,629,000
	..... 
	2009 
	
59.13 	The 2008 appropriation includes $76,000 for 2007 and $1,267,000 $1,257,000
59.14 	for 2008.
59.15 	The 2009 appropriation includes $140,000 $139,000 for 2008 and $1,207,000
59.16 	$1,490,000 for 2009.

59.17 	Sec. 4. Laws 2007, chapter 146, article 1, section 24, subdivision 6, is amended to read:
59.18 		Subd. 6. Consolidation transition. For districts consolidating under Minnesota 
59.19 	Statutes, section 123A.485:

59.20		$ 
	565,000240,000
	..... 
	2008 
	
59.21		$ 
	212,000339,000
	..... 
	2009 
	
59.22 	The 2008 appropriation includes $43,000 for 2007 and $522,000 $197,000 for 2008.
59.23 	The 2009 appropriation includes $57,000 $21,000 for 2008 and $155,000 $318,000
59.24 	for 2009.

59.25 	Sec. 5. Laws 2007, chapter 146, article 1, section 24, subdivision 7, is amended to read:
59.26 		Subd. 7. Nonpublic pupil education aid. For nonpublic pupil education aid under 
59.27 	Minnesota Statutes, sections 123B.40 to 123B.43, and 123B.87:

59.28
59.29		$ 
	16,290,000
15,601,000
	..... 
	2008 
	
59.30
59.31		$ 
	16,620,000
16,608,000
	..... 
	2009 
	
59.32 	The 2008 appropriation includes $1,606,000 $1,214,000 for 2007 and $14,684,000
59.33 	$14,387,000 for 2008.
60.1 	The 2009 appropriation includes $1,631,000 $1,598,000 for 2008 and $14,989,000
60.2 	$15,010,000 for 2009.

60.3 	Sec. 6. Laws 2007, chapter 146, article 1, section 24, subdivision 8, is amended to read:
60.4 		Subd. 8. Nonpublic pupil transportation. For nonpublic pupil transportation aid 
60.5 	under Minnesota Statutes, section 123B.92, subdivision 9:

60.6
60.7		$ 
	21,551,000
20,755,000
	..... 
	2008 
	
60.8
60.9		$ 
	21,392,000
21,007,000
	..... 
	2009 
	
60.10 	The 2008 appropriation includes $2,124,000 for 2007 and $19,427,000 $18,631,000
60.11 	for 2008.
60.12 	The 2009 appropriation includes $2,158,000 $2,070,000 for 2008 and $19,234,000
60.13 	$18,937,000 for 2009.
60.14 	B. EDUCATION EXCELLENCE

60.15 	Sec. 7. Laws 2007, chapter 146, article 2, section 46, subdivision 2, is amended to read:
60.16 		Subd. 2. Charter school building lease aid. For building lease aid under Minnesota 
60.17 	Statutes, section 124D.11, subdivision 4: 

60.18
60.19		$ 
	31,875,000
32,817,000
	..... 
	2008 
	
60.20
60.21		$ 
	36,193,000
37,527,000
	..... 
	2009 
	
60.22 	The 2008 appropriation includes $2,814,000 for 2007 and $29,061,000 $30,003,000
60.23 	for 2008. 
60.24 	The 2009 appropriation includes $3,229,000 $3,333,000 for 2008 and $32,964,000
60.25 	$34,194,000 for 2009. 

60.26 	Sec. 8. Laws 2007, chapter 146, article 2, section 46, subdivision 3, is amended to read:
60.27 		Subd. 3. Charter school startup cost aid. For charter school startup cost aid 
60.28 	under Minnesota Statutes, section 124D.11: 

60.29
60.30		$ 
	1,896,000
1,801,000
	..... 
	2008 
	
60.31
60.32		$ 
	2,161,000
1,987,000
	..... 
	2009 
	
60.33 	The 2008 appropriation includes $241,000$239,000 for 2007 and $1,655,000
60.34 	$1,562,000 for 2008. 
61.1 	The 2009 appropriation includes $183,000 $173,000 for 2008 and $1,978,000
61.2 	$1,814,000 for 2009. 

61.3 	Sec. 9. Laws 2007, chapter 146, article 2, section 46, subdivision 4, is amended to read:
61.4 		Subd. 4. Integration aid. For integration aid under Minnesota Statutes, section 
61.5 	124D.86, subdivision 5: 

61.6
61.7		$ 
	61,769,000
59,036,000
	..... 
	2008 
	
61.8
61.9		$ 
	61,000,000
62,448,000
	..... 
	2009 
	
61.10 	The 2008 appropriation includes $5,824,000 for 2007 and $55,945,000 $53,212,000
61.11 	for 2008. 
61.12 	The 2009 appropriation includes $6,216,000 $5,912,000 for 2008 and $54,784,000
61.13 	$56,536,000 for 2009. 

61.14 	Sec. 10. Laws 2007, chapter 146, article 2, section 46, subdivision 6, is amended to 
61.15 	read:
61.16 		Subd. 6. Interdistrict desegregation or integration transportation grants. For 
61.17 	interdistrict desegregation or integration transportation grants under Minnesota Statutes, 
61.18 	section 124D.87: 

61.19
61.20		$ 
	9,639,000
9,901,000
	..... 
	2008 
	
61.21
61.22		$ 
	11,567,000
11,881,000
	..... 
	2009 

61.23 	Sec. 11. Laws 2007, chapter 146, article 2, section 46, subdivision 9, is amended to 
61.24 	read:
61.25 		Subd. 9. Tribal contract schools. For tribal contract school aid under Minnesota 
61.26 	Statutes, section 124D.83: 

61.27
61.28		$ 
	2,238,000
2,207,000
	..... 
	2008 
	
61.29
61.30		$ 
	2,422,000
2,392,000
	..... 
	2009 
	
61.31 	The 2008 appropriation includes $204,000 for 2007 and $2,034,000 $2,003,000
61.32 	for 2008. 
61.33 	The 2009 appropriation includes $226,000 $222,000 for 2008 and $2,196,000
61.34 	$2,170,000 for 2009. 
61.35 	C. SPECIAL PROGRAMS

62.1 	Sec. 12. Laws 2007, chapter 146, article 3, section 24, subdivision 3, is amended to 
62.2 	read:
62.3 		Subd. 3. Aid for children with disabilities. For aid under Minnesota Statutes, 
62.4 	section 125A.75, subdivision 3, for children with disabilities placed in residential facilities 
62.5 	within the district boundaries for whom no district of residence can be determined: 

62.6
62.7		$ 
	1,538,000
2,086,000
	..... 
	2008 
	
62.8
62.9		$ 
	1,729,000
2,282,000
	..... 
	2009 
	
62.10 	If the appropriation for either year is insufficient, the appropriation for the other 
62.11 	year is available. 

62.12 	Sec. 13. Laws 2007, chapter 146, article 3, section 24, subdivision 4, is amended to 
62.13 	read:
62.14 		Subd. 4. Travel for home-based services. For aid for teacher travel for home-based 
62.15 	services under Minnesota Statutes, section 125A.75, subdivision 1: 

62.16		$ 
	254,000207,000
	..... 
	2008 
	
62.17		$ 
	284,000227,000
	..... 
	2009 
	
62.18 	The 2008 appropriation includes $22,000 for 2007 and $232,000 $185,000 for 2008. 
62.19 	The 2009 appropriation includes $25,000 $20,000 for 2008 and $259,000 $207,000
62.20 	for 2009. 
62.21 	D. FACILITIES AND TECHNOLOGY

62.22 	Sec. 14. Laws 2007, chapter 146, article 4, section 16, subdivision 2, is amended to 
62.23 	read:
62.24 		Subd. 2. Health and safety revenue. For health and safety aid according to 
62.25 	Minnesota Statutes, section 123B.57, subdivision 5: 

62.26		$ 
	190,000254,000
	..... 
	2008 
	
62.27		$ 
	179,000103,000
	..... 
	2009 
	
62.28 	The 2008 appropriation includes $20,000 for 2007 and $170,000 $234,000 for 2008. 
62.29 	The 2009 appropriation includes $18,000 $26,000 for 2008 and $161,000 $77,000
62.30 	for 2009. 

62.31 	Sec. 15. Laws 2007, chapter 146, article 4, section 16, subdivision 3, is amended to 
62.32 	read:
63.1 		Subd. 3. Debt service equalization. For debt service aid according to Minnesota 
63.2 	Statutes, section 123B.53, subdivision 6: 

63.3
63.4		$ 
	14,813,000
14,814,000
	..... 
	2008 
	
63.5
63.6		$ 
	11,124,000
9,109,000
	..... 
	2009 
	
63.7 	The 2008 appropriation includes $1,767,000 $1,766,000 for 2007 and $13,046,000
63.8 	$13,048,000 for 2008. 
63.9 	The 2009 appropriation includes $1,450,000 $1,449,000 for 2008 and $9,674,000
63.10 	$7,660,000 for 2009. 

63.11 	Sec. 16. Laws 2007, chapter 146, article 4, section 16, subdivision 6, is amended to 
63.12 	read:
63.13 		Subd. 6. Deferred maintenance aid. For deferred maintenance aid, according to 
63.14 	Minnesota Statutes, section 123B.591, subdivision 4: 

63.15
63.16		$ 
	3,290,000
3,232,000
	..... 
	2008 
	
63.17
63.18		$ 
	2,667,000
2,627,000
	..... 
	2009 
	
63.19 	The 2008 appropriation includes $0 for 2007 and $3,290,000 $3,232,000 for 2008. 
63.20 	The 2009 appropriation includes $365,000 $359,000 for 2008 and $2,302,000
63.21 	$2,268,000 for 2009. 

63.22 	Sec. 17. Laws 2007, chapter 146, article 4, section 16, subdivision 8, is amended to 
63.23 	read:
63.24 		Subd. 8. School technology and operating capital aid grants. For school 
63.25 	technology and operating capital grants under section 11: 

63.26
63.27		$ 
	38,145,000
38,236,000
	..... 
	2008 
	
63.28
63.29		$ 
	52,676,000
52,454,000
	..... 
	2009 
	
63.30 	This is a onetime appropriation. 
63.31 	E. NUTRITION

63.32 	Sec. 18. Laws 2007, chapter 146, article 5, section 13, subdivision 2, is amended to 
63.33 	read:
63.34 		Subd. 2. School lunch. For school lunch aid according to Minnesota Statutes, 
63.35 	section 124D.111, and Code of Federal Regulations, title 7, section 210.17: 

64.1
64.2		$ 
	12,022,000
12,094,000
	..... 
	2008 
	
64.3
64.4		$ 
	12,166,000
12,394,000
	..... 
	2009 

64.5 	Sec. 19. Laws 2007, chapter 146, article 5, section 13, subdivision 4, is amended to 
64.6 	read:
64.7 		Subd. 4. Summer food service replacement aid. For summer food service 
64.8 	replacement aid under Minnesota Statutes, section 124D.119: 

64.9		$ 
	150,000127,000
	..... 
	2008 
	
64.10		$ 
	150,000
	..... 
	2009 
	
64.11 	F. EARLY CHILDHOOD AND ADULT PROGRAMS

64.12 	Sec. 20. Laws 2007, chapter 146, article 9, section 17, subdivision 2, is amended to 
64.13 	read:
64.14 		Subd. 2. Early childhood family education aid. For early childhood family 
64.15 	education aid under Minnesota Statutes, section 124D.135: 

64.16
64.17		$ 
	21,106,000
21,092,000
	..... 
	2008 
	
64.18
64.19		$ 
	29,601,000
29,324,000
	..... 
	2009 
	
64.20 	The 2008 appropriation includes $1,796,000 for 2007 and $19,310,000 $19,296,000
64.21 	for 2008. 
64.22 	The 2009 appropriation includes $2,145,000 $2,144,000 for 2008 and $27,456,000
64.23 	$27,180,000 for 2009. 

64.24 	Sec. 21. Laws 2007, chapter 146, article 9, section 17, subdivision 3, is amended to 
64.25 	read:
64.26 		Subd. 3. School readiness. For revenue for school readiness programs under 
64.27 	Minnesota Statutes, sections 124D.15 and 124D.16: 

64.28
64.29		$ 
	9,995,000
9,987,000
	..... 
	2008 
	
64.30		$ 
	10,095,000
	..... 
	2009 
	
64.31 	The 2008 appropriation includes $909,000 $901,000 for 2007 and $9,086,000 for 
64.32 	2008. 
64.33 	The 2009 appropriation includes $1,009,000 for 2008 and $9,086,000 for 2009. 

65.1 	Sec. 22. Laws 2007, chapter 146, article 9, section 17, subdivision 8, is amended to 
65.2 	read:
65.3 		Subd. 8. Community education aid. For community education aid under 
65.4 	Minnesota Statutes, section 124D.20: 

65.5
65.6		$ 
	1,307,000
1,299,000
	..... 
	2008 
	
65.7		$ 
	816,000796,000
	..... 
	2009 
	
65.8 	The 2008 appropriation includes $195,000 for 2007 and $1,112,000 $1,104,000
65.9 	for 2008. 
65.10 	The 2009 appropriation includes $123,000 $122,000 for 2008 and $693,000
65.11 	$674,000 for 2009. 

65.12 	Sec. 23. Laws 2007, chapter 146, article 9, section 17, subdivision 9, is amended to 
65.13 	read:
65.14 		Subd. 9. Adults with disabilities program aid. For adults with disabilities 
65.15 	programs under Minnesota Statutes, section 124D.56: 

65.16		$ 
	710,000709,000
	..... 
	2008 
	
65.17		$ 
	710,000
	..... 
	2009 
	
65.18 	The 2008 appropriation includes $71,000 $70,000 for 2007 and $639,000 for 2008. 
65.19 	The 2009 appropriation includes $71,000 for 2008 and $639,000 for 2009. 
65.20 	School districts operating existing adults with disabilities programs that are not fully 
65.21 	funded shall receive full funding for the program beginning in fiscal year 2008 before the 
65.22 	commissioner awards grants to other districts. 

65.23 	Sec. 24. Laws 2007, chapter 146, article 9, section 17, subdivision 13, is amended to 
65.24 	read:
65.25 		Subd. 13. Adult basic education aid. For adult basic education aid under 
65.26 	Minnesota Statutes, section 124D.531: 

65.27
65.28		$ 
	40,347,000
40,344,000
	..... 
	2008 
	
65.29
65.30		$ 
	41,745,000
41,712,000
	..... 
	2009 
	
65.31 	The 2008 appropriation includes $3,759,000 for 2007 and $36,588,000 $36,585,000
65.32 	for 2008. 
65.33 	The 2009 appropriation includes $4,065,000 for 2008 and $37,680,000 $37,647,000
65.34 	for 2009.