1.1 	A bill for an act
1.2 	relating to education; providing for policy and funding for early childhood, 
1.3 	family, adult, and prekindergarten through grade 12 education, including 
1.4 	general education; education excellence; special programs; facilities and 
1.5 	technology; nutrition; libraries and accounting; early education, prevention, 
1.6 	self-sufficiency, and lifelong learning; state agencies; and forecast adjustments; 
1.7 	creating a consolidated levy; modifying charter school provisions; reducing 
1.8 	mandates; allocating prekindergarten allowances; appropriating money; 
1.9 	amending Minnesota Statutes 2008, sections 16A.06, subdivision 11; 119A.52; 
1.10 	120A.22, subdivisions 11, 12; 120A.24; 120A.40; 120A.41; 120B.02; 120B.021, 
1.11 	subdivision 1; 120B.023, subdivision 2; 120B.024; 120B.30, subdivisions 
1.12 	1, 1a, 2, by adding a subdivision; 120B.31, subdivisions 1, 3, 4; 120B.35; 
1.13 	120B.36; 121A.035, subdivision 2; 121A.037; 121A.15, subdivision 8; 
1.14 	121A.41, subdivisions 7, 10; 121A.43; 122A.06, subdivision 4; 122A.07, 
1.15 	subdivisions 2, 3; 122A.18, subdivisions 2, 2a, by adding a subdivision; 
1.16 	122A.31, subdivision 4; 122A.413, subdivision 2; 122A.414, subdivision 2b, by 
1.17 	adding a subdivision; 122A.415, by adding subdivisions; 122A.60, subdivision 
1.18 	1a; 122A.61, subdivision 1; 123A.05; 123A.06; 123A.08; 123A.73, subdivisions 
1.19 	4, 5; 123B.03, subdivision 1; 123B.14, subdivision 7; 123B.42, subdivision 1; 
1.20 	123B.44, subdivision 1; 123B.51, by adding a subdivision; 123B.54; 123B.59, 
1.21 	subdivisions 6, 7; 123B.70, subdivision 1; 123B.71, subdivision 9; 123B.77, 
1.22 	subdivision 3; 123B.81, subdivisions 3, 4, 5; 123B.83, subdivision 3; 124D.095, 
1.23 	subdivisions 3, 4, 7, 10; 124D.10, subdivisions 1, 2a, 3, 4, 4a, 5, 6, 6a, 7, 8, 9, 11, 
1.24 	13, 14, 15, 17, 20, 23, 23a, 25, by adding subdivisions; 124D.11, subdivision 
1.25 	9, by adding a subdivision; 124D.128, subdivisions 2, 3; 124D.13, subdivision 
1.26 	13; 124D.135, subdivision 3; 124D.15, subdivision 3; 124D.19, subdivisions 
1.27 	10, 14; 124D.42, subdivision 6, by adding a subdivision; 124D.522; 124D.60, 
1.28 	subdivision 1; 124D.68, subdivisions 2, 3, 4; 124D.83, subdivision 4; 124D.86, 
1.29 	subdivision 3; 125A.01; 125A.02; 125A.07; 125A.08; 125A.091, subdivisions 
1.30 	7, 10, 12, 13, 14, 16, 18, 19, 20, 24, 25, 27, 28, by adding a subdivision; 
1.31 	125A.11, subdivision 1; 125A.15; 125A.28; 125A.51; 125A.57, subdivision 2; 
1.32 	125A.62, subdivision 8; 125A.63, subdivisions 2, 4; 125A.744, subdivision 3; 
1.33 	125A.76, subdivision 1; 125B.26, subdivisions 1, 2, 3, 4; 126C.05, subdivisions 
1.34 	2, 15, 20; 126C.10, subdivisions 2a, 13a, 13b, 29, 30, 32, 33, 34, 35, 36; 
1.35 	126C.13, subdivision 4, by adding subdivisions; 126C.15, subdivisions 2, 4; 
1.36 	126C.17, subdivision 9; 126C.21, subdivision 3, by adding a subdivision; 
1.37 	126C.40, subdivision 6; 126C.455; 127A.08, by adding a subdivision; 127A.47, 
1.38 	subdivisions 5, 7; 127A.49, subdivisions 2, 3; 134.31, subdivision 4a, by 
1.39 	adding a subdivision; 134.34, subdivisions 1, 4; 171.05, subdivision 2; 171.17, 
2.1 	subdivision 1; 171.22, subdivision 1; 181A.05, subdivision 1; 299A.297; 
2.2 	299F.30, subdivision 1; 299F.47, subdivision 4; Laws 2007, chapter 146, article 
2.3 	1, section 24, subdivisions 2, as amended, 4, as amended, 5, as amended, 6, 
2.4 	as amended, 7, as amended, 8, as amended; article 2, section 46, subdivisions 
2.5 	2, as amended, 3, as amended, 4, as amended, 6, as amended, 9, as amended; 
2.6 	article 3, section 24, subdivisions 3, as amended, 4, as amended, 7; article 4, 
2.7 	section 16, subdivisions 2, as amended, 6, as amended, 8, as amended; article 
2.8 	5, section 13, subdivisions 2, as amended, 3, as amended; article 9, section 17, 
2.9 	subdivisions 2, as amended, 4, as amended, 8, as amended, 9, as amended, 13, as 
2.10 	amended; proposing coding for new law in Minnesota Statutes, chapters 4; 120B; 
2.11 	122A; 124D; 125B; 127A; repealing Minnesota Statutes 2008, sections 120A.26, 
2.12 	subdivisions 1, 2; 120B.362; 121A.27; 122A.24; 122A.72, subdivisions 3, 4; 
2.13 	124D.10, subdivisions 18, 19, 26; 125A.05; 125A.091, subdivisions 1, 2, 3, 4, 
2.14 	22, 23; 126C.10, subdivisions 13a, 13b, 29, 30, 32, 33, 34, 35, 36; Laws 2008, 
2.15 	chapter 363, article 2, section 48; Minnesota Rules, parts 3525.0210, subparts 34, 
2.16 	43; 3525.0400; 3525.2445; 3525.4220.
2.17 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

2.18 	ARTICLE 1
2.19 	GENERAL EDUCATION

2.20 	Section 1. Minnesota Statutes 2008, section 16A.06, subdivision 11, is amended to read:
2.21 		Subd. 11.Permanent school fund reporting. The commissioner shall biannually
2.22 	annually  report to the Permanent School Fund Advisory Committee and the legislature 
2.23 	on the management of the permanent school trust fund that shows how the commissioner
2.24 	the amount of the permanent school fund transfer and information about the investment of 
2.25 	the permanent school fund provided by the State Board of Investment. The State Board of 
2.26 	Investment shall provide information about how they maximized the long-term economic 
2.27 	return of the permanent school trust fund.

2.28 	Sec. 2. Minnesota Statutes 2008, section 120A.40, is amended to read:
2.29 	120A.40 SCHOOL CALENDAR.
2.30 	(a) Except for learning programs during summer, flexible learning year programs 
2.31 	authorized under sections 124D.12 to 124D.127, and learning year programs under section 
2.32 	124D.128, a district must not commence an elementary or secondary school year before 
2.33 	Labor Day, except as provided under paragraph (b). Days devoted to teachers' workshops 
2.34 	may be held before Labor Day. Districts that enter into cooperative agreements are 
2.35 	encouraged to adopt similar school calendars.
2.36 	(b) A district may begin the school year on any day before Labor Day:
2.37 	(1) to accommodate a construction or remodeling project of $400,000 or more 
2.38 	affecting a district school facility.;
3.1 	(2) if the district has an agreement under section 123A.30, 123A.32, or 123A.35 
3.2 	with a district that qualifies under clause (1); or
3.3 	A school (3) if the district that agrees to the same schedule with a school district 
3.4 	in an adjoining state also may begin the school year before Labor Day as authorized 
3.5 	under this paragraph.

3.6 	Sec. 3. Minnesota Statutes 2008, section 120A.41, is amended to read:
3.7 	120A.41 LENGTH OF SCHOOL YEAR; DAYS HOURS OF INSTRUCTION.
3.8 	A school board's annual school calendar must include at least the number of days of 
3.9 	student instruction the board formally adopted as its school calendar at the beginning of 
3.10 	the 1996-1997 school year 425 hours of instruction for a kindergarten student without a 
3.11 	disability, 935 hours of instruction for a student in grades 1 though 6, and 1,020 hours of 
3.12 	instruction for a student in grades 7 though 12, not including summer school.

3.13 	Sec. 4. Minnesota Statutes 2008, section 123A.73, subdivision 4, is amended to read:
3.14 		Subd. 4.Consolidation; maximum authorized referendum revenues. (a) As 
3.15 	of the effective date of a consolidation pursuant to section 123A.48, if the plan for 
3.16 	consolidation so provides, or if the plan for consolidation makes no provision concerning 
3.17 	referendum revenues, the authorization for all referendum revenues previously approved 
3.18 	by the voters of all affected districts for those districts pursuant to section 126C.17, 
3.19 	subdivision 9, or its predecessor provision shall be recalculated as provided in this 
3.20 	subdivision. The referendum revenue authorization for the newly created district shall 
3.21 	be the revenue per resident marginal cost pupil unit that would raise an amount equal 
3.22 	to the combined dollar amount of the referendum revenues authorized by each of the 
3.23 	component districts for the year preceding the consolidation, unless the referendum 
3.24 	revenue authorization of the newly created district is subsequently modified pursuant to 
3.25 	section 126C.17, subdivision 9. 
3.26 	(b) The referendum allowance for a consolidated district in the years following 
3.27 	consolidation equals the average of the consolidating districts' existing authorities for 
3.28 	those years, weighted by the districts' resident marginal cost pupil units in the year 
3.29 	preceding consolidation. For purposes of this calculation, the referendum authorities used 
3.30 	for individual districts shall not decrease from year to year until such time as all existing 
3.31 	authorities for all the consolidating districts have fully expired, but shall increase if they 
3.32 	were originally approved with consumer price index-based or other annual increases.
3.33 	(c) The referendum revenue authorization for the newly created district shall continue 
3.34 	for a period of time equal to the longest period authorized for any component district.  

4.1 	EFFECTIVE DATE. This section is effective for revenue for fiscal years 2010 
4.2 	and later.

4.3 	Sec. 5. Minnesota Statutes 2008, section 123A.73, subdivision 5, is amended to read:
4.4 		Subd. 5.Alternative method. (a) As of the effective date of a consolidation 
4.5 	pursuant to section 123A.48, if the plan for consolidation so provides, the authorization 
4.6 	for all referendum revenues previously approved by the voters of all affected districts for 
4.7 	those districts pursuant to section 126C.17, subdivision 9, or its predecessor provision 
4.8 	shall be combined as provided in this subdivision. The referendum revenue authorization 
4.9 	for the newly created district may be any allowance per resident marginal cost pupil unit 
4.10 	provided in the plan for consolidation, but may not exceed the allowance per resident 
4.11 	marginal cost pupil unit that would raise an amount equal to the combined dollar amount 
4.12 	of the referendum revenues authorized by each of the component districts for the year 
4.13 	preceding the consolidation. 
4.14 	(b) The referendum allowance for a consolidated district in the years following 
4.15 	consolidation equals the average of the consolidating districts' existing authorities for 
4.16 	those years, weighted by the districts' resident marginal cost pupil units in the year 
4.17 	preceding consolidation. For purposes of this calculation, the referendum authorities used 
4.18 	for individual districts shall not decrease from year to year until such time as all existing 
4.19 	authorities for all the consolidating districts have fully expired, but shall increase if they 
4.20 	were originally approved with consumer price index-based or other annual increases.
4.21 	(c) The referendum revenue authorization for the newly created district shall 
4.22 	continue for a period of time equal to the longest period authorized for any component 
4.23 	district. The referendum revenue authorization for the newly created district may be 
4.24 	modified pursuant to section 126C.17, subdivision 9.

4.25 	Sec. 6. Minnesota Statutes 2008, section 123B.14, subdivision 7, is amended to read:
4.26 		Subd. 7.Clerk records. The clerk shall keep a record of all meetings of the 
4.27 	district and the board in books provided by the district for that purpose. The clerk shall, 
4.28 	within three days after an election, notify all persons elected of their election. By August
4.29 	September 15 of each year the clerk shall file with the board a report of the revenues, 
4.30 	expenditures and balances in each fund for the preceding fiscal year. The report together 
4.31 	with vouchers and supporting documents shall subsequently be examined by a public 
4.32 	accountant or the state auditor, either of whom shall be paid by the district, as provided 
4.33 	in section 123B.77, subdivision 3. The board shall by resolution approve the report or 
5.1 	require a further or amended report. By AugustSeptember 15 of each year, the clerk shall 
5.2 	make and transmit to the commissioner certified reports, showing:  
5.3 	(1) The condition and value of school property;
5.4 	(2) the revenues and expenditures in detail, and such other financial information 
5.5 	required by law, rule, or as may be called for by the commissioner;
5.6 	(3) (2) the length of school term and the enrollment and attendance by grades; and
5.7 	(4) (3) such other items of information as may be called for by the commissioner.
5.8 	The clerk shall enter in the clerk's record book copies of all reports and of the 
5.9 	teachers' term reports, as they appear in the registers, and of the proceedings of any 
5.10 	meeting as furnished by the clerk pro tem, and keep an itemized account of all the 
5.11 	expenses of the district. The clerk shall furnish to the auditor of the proper county, by 
5.12 	October 10September 30 of each year, an attested copy of the clerk's record, showing 
5.13 	the amount of moneyproposed property tax voted by the district or the board for school 
5.14 	purposes; draw and sign all orders upon the treasurer for the payment of money for bills 
5.15 	allowed by the board for salaries of officers and for teachers' wages and all claims, to be 
5.16 	countersigned by the chair. Such orders must state the consideration, payee, and the 
5.17 	fund and the clerk shall take a receipt therefor. Teachers' wages shall have preference in 
5.18 	the order in which they become due, and no money applicable for teachers' wages shall 
5.19 	be used for any other purpose, nor shall teachers' wages be paid from any fund except 
5.20 	that raised or apportioned for that purpose.

5.21 	Sec. 7. Minnesota Statutes 2008, section 123B.42, subdivision 1, is amended to read:
5.22 		Subdivision 1.Providing education materials and tests. The commissioner of 
5.23 	education shall promulgate rules under the provisions of chapter 14 requiring that in 
5.24 	each school year, based upon formal requests by or on behalf of nonpublic school pupils 
5.25 	in a nonpublic school with enrollment that exceeds 15 students, the local districts or 
5.26 	intermediary service areas must purchase or otherwise acquire textbooks, individualized 
5.27 	instructional or cooperative learning materials, and standardized tests and loan or provide 
5.28 	them for use by children enrolled in that nonpublic school. These textbooks, individualized 
5.29 	instructional or cooperative learning materials, and standardized tests must be loaned or 
5.30 	provided free to the children for the school year for which requested. The loan or provision 
5.31 	of the textbooks, individualized instructional or cooperative learning materials, and 
5.32 	standardized tests shall be subject to rules prescribed by the commissioner of education.

5.33 	Sec. 8. Minnesota Statutes 2008, section 123B.44, subdivision 1, is amended to read:
6.1 		Subdivision 1.Provided services. The commissioner of education shall promulgate 
6.2 	rules under the provisions of chapter 14 requiring each district or other intermediary 
6.3 	service area: (a) to provide each year upon formal request by a specific date by or on 
6.4 	behalf of a nonpublic school pupil enrolled in a nonpublic school located in that district 
6.5 	or area with a total enrollment of more than 15 pupils, the same specific health services 
6.6 	as are provided for public school pupils by the district where the nonpublic school is 
6.7 	located; and (b) to provide each year upon formal request by a specific date by or on 
6.8 	behalf of a nonpublic school secondary pupil enrolled in a nonpublic school located in that 
6.9 	district or area, the same specific guidance and counseling services as are provided for 
6.10 	public school secondary pupils by the district where the nonpublic school is located. The 
6.11 	district where the nonpublic school is located must provide the necessary transportation 
6.12 	within the district boundaries between the nonpublic school and a public school or 
6.13 	neutral site for nonpublic school pupils who are provided pupil support services under 
6.14 	this section if the district elects to provide pupil support services at a site other than the 
6.15 	nonpublic school. Each request for pupil support services must set forth the guidance and 
6.16 	counseling or health services requested by or on behalf of all eligible nonpublic school 
6.17 	pupils enrolled in a given nonpublic school. No district or intermediary service area 
6.18 	must not expend an amount for these pupil support services which exceeds the amount 
6.19 	allotted to it under this section.

6.20 	Sec. 9. Minnesota Statutes 2008, section 123B.77, subdivision 3, is amended to read:
6.21 		Subd. 3.Statement for comparison and correction. (a) By November 30 of the 
6.22 	calendar year of the submission of the unaudited financial data, the district must provide to 
6.23 	the commissioner audited financial data for the preceding fiscal year. The audit must be 
6.24 	conducted in compliance with generally accepted governmental auditing standards, the 
6.25 	federal Single Audit Act, and the Minnesota legal compliance guide issued by the Office 
6.26 	of the State Auditor. An audited financial statement prepared in a form which will allow 
6.27 	comparison with and correction of material differences in the unaudited financial data 
6.28 	shall be submitted to the commissioner and the state auditor by December 31. The audited 
6.29 	financial statement must also provide a statement of assurance pertaining to uniform 
6.30 	financial accounting and reporting standards compliance and a copy of the management 
6.31 	letter submitted to the district by the school district's auditor.
6.32 	(b) By January February 15 of the calendar year following the submission of the 
6.33 	unaudited financial data, the commissioner shall convert the audited financial data 
6.34 	required by this subdivision into the consolidated financial statement format required 
6.35 	under subdivision 1a and publish the information on the department's Web site.

7.1 	Sec. 10. Minnesota Statutes 2008, section 123B.81, subdivision 3, is amended to read:
7.2 		Subd. 3.Debt verification. The commissioner shall establish a uniform auditing or 
7.3 	other verification procedure for districts to determine whether a statutory operating debt 
7.4 	exists in any Minnesota school district as of June 30, 1977. This procedure must identify 
7.5 	all interfund transfers made during fiscal year 1977 from a fund included in computing 
7.6 	statutory operating debt to a fund not included in computing statutory operating debt. 
7.7 	The standards for this uniform auditing or verification procedure must be promulgated 
7.8 	by the state board pursuant to chapter 14. If a district applies to the commissioner for 
7.9 	a statutory operating debt verification or if the unaudited financial statement for the 
7.10 	school year ending June 30, 1977 reveals that a statutory operating debt might exist, the 
7.11 	commissioner shall require a verification of the amount of the statutory operating debt 
7.12 	which actually does exist.

7.13 	Sec. 11. Minnesota Statutes 2008, section 123B.81, subdivision 4, is amended to read:
7.14 		Subd. 4.Debt elimination. If an audit or other verification procedure conducted 
7.15 	pursuant to subdivision 3 determines that a statutory operating debt exists, a district 
7.16 	must follow the procedures set forth in this section 123B.83 to eliminate this statutory 
7.17 	operating debt. 

7.18 	Sec. 12. Minnesota Statutes 2008, section 123B.81, subdivision 5, is amended to read:
7.19 		Subd. 5.Certification of debt. The commissioner shall certify the amount of 
7.20 	statutory operating debt for each district. Prior to June 30, 1979, the commissioner may, 
7.21 	on the basis of corrected figures, adjust the total amount of statutory operating debt 
7.22 	certified for any district.

7.23 	Sec. 13. Minnesota Statutes 2008, section 123B.83, subdivision 3, is amended to read:
7.24 		Subd. 3.Failure to limit expenditures. If a district does not limit its expenditures in 
7.25 	accordance with this section, the commissioner may so notify the appropriate committees 
7.26 	of the legislature by no later than January 1 February 15 of the year following the end 
7.27 	of that fiscal year.

7.28 	Sec. 14. Minnesota Statutes 2008, section 124D.10, subdivision 13, is amended to read:
7.29 		Subd. 13.Length of school year. A charter school must provide instruction each 
7.30 	year for at least the number of days hours required by section 120A.41. It may provide 
7.31 	instruction throughout the year according to sections 124D.12 to 124D.127 or 124D.128. 

8.1 	Sec. 15. Minnesota Statutes 2008, section 125A.11, subdivision 1, is amended to read:
8.2 		Subdivision 1.Nonresident tuition rate; other costs. (a) For fiscal year 2006, 
8.3 	when a school district provides instruction and services outside the district of residence, 
8.4 	board and lodging, and any tuition to be paid, shall be paid by the district of residence. 
8.5 	The tuition rate to be charged for any child with a disability, excluding a pupil for whom 
8.6 	tuition is calculated according to section 127A.47, subdivision 7, paragraph (d), must be 
8.7 	the sum of (1) the actual cost of providing special instruction and services to the child 
8.8 	including a proportionate amount for special transportation and unreimbursed building 
8.9 	lease and debt service costs for facilities used primarily for special education, plus (2) 
8.10 	the amount of general education revenue and referendum aid attributable to the pupil, 
8.11 	minus (3) the amount of special education aid for children with a disability received 
8.12 	on behalf of that child, minus (4) if the pupil receives special instruction and services 
8.13 	outside the regular classroom for more than 60 percent of the school day, the amount of 
8.14 	general education revenue and referendum aid, excluding portions attributable to district 
8.15 	and school administration, district support services, operations and maintenance, capital 
8.16 	expenditures, and pupil transportation, attributable to that pupil for the portion of time 
8.17 	the pupil receives special instruction and services outside of the regular classroom. If 
8.18 	the boards involved do not agree upon the tuition rate, either board may apply to the 
8.19 	commissioner to fix the rate. Notwithstanding chapter 14, the commissioner must then set 
8.20 	a date for a hearing or request a written statement from each board, giving each board 
8.21 	at least ten days' notice, and after the hearing or review of the written statements the 
8.22 	commissioner must make an order fixing the tuition rate, which is binding on both school 
8.23 	districts. General education revenue and referendum equalization aid attributable to a 
8.24 	pupil must be calculated using the resident district's average general education revenue 
8.25 	and referendum equalization aid per adjusted pupil unit.
8.26 	(b) For fiscal year 2007 and later, when a school district provides special instruction 
8.27 	and services for a pupil with a disability as defined in section 125A.02 outside the district 
8.28 	of residence, excluding a pupil for whom an adjustment to special education aid is 
8.29 	calculated according to section 127A.47, subdivision 7, paragraph (e), special education 
8.30 	aid paid to the resident district must be reduced by an amount equal to (1) the actual 
8.31 	cost of providing special instruction and services to the pupil, including a proportionate 
8.32 	amount for special transportation and unreimbursed building lease and debt service costs 
8.33 	for facilities used primarily for special education, plus (2) the amount of general education 
8.34 	revenue and referendum equalization aid attributable to that pupil, calculated using the 
8.35 	resident district's average general education revenue and referendum equalization aid 
8.36 	per adjusted pupil unit excluding basic skills revenue, elementary sparsity revenue and 
9.1 	secondary sparsity revenue, minus (3) the amount of special education aid for children 
9.2 	with a disability received on behalf of that child, minus (4) if the pupil receives special 
9.3 	instruction and services outside the regular classroom for more than 60 percent of the 
9.4 	school day, the amount of general education revenue and referendum equalization aid, 
9.5 	excluding portions attributable to district and school administration, district support 
9.6 	services, operations and maintenance, capital expenditures, and pupil transportation, 
9.7 	attributable to that pupil for the portion of time the pupil receives special instruction 
9.8 	and services outside of the regular classroom, calculated using the resident district's 
9.9 	average general education revenue and referendum equalization aid per adjusted pupil unit 
9.10 	excluding basic skills revenue, elementary sparsity revenue and secondary sparsity revenue 
9.11 	and the serving district's basic skills revenue, elementary sparsity revenue and secondary 
9.12 	sparsity revenue per adjusted pupil unit. Notwithstanding clauses (1) and (4), for pupils 
9.13 	served by a cooperative unit without a fiscal agent school district, the general education 
9.14 	revenue and referendum equalization aid attributable to a pupil must be calculated using 
9.15 	the resident district's average general education revenue and referendum equalization aid 
9.16 	excluding compensatory revenue, elementary sparsity revenue, and secondary sparsity 
9.17 	revenue. Special education aid paid to the district or cooperative providing special 
9.18 	instruction and services for the pupil must be increased by the amount of the reduction in 
9.19 	the aid paid to the resident district. Amounts paid to cooperatives under this subdivision 
9.20 	and section 127A.47, subdivision 7, shall be recognized and reported as revenues and 
9.21 	expenditures on the resident school district's books of account under sections 123B.75
9.22 	and 123B.76. If the resident district's special education aid is insufficient to make the full 
9.23 	adjustment, the remaining adjustment shall be made to other state aid due to the district.
9.24 	(c) Notwithstanding paragraphs (a) and (b) and section 127A.47, subdivision 7, 
9.25 	paragraphs (d) and (e), a charter school where more than 30 percent of enrolled students 
9.26 	receive special education and related services, a  site approved under section 125A.515, 
9.27 	an intermediate district, a special education cooperative, or a school district that served 
9.28 	as the applicant agency for a group of school districts for federal special education aids 
9.29 	for fiscal year 2006 may apply to the commissioner for authority to charge the resident 
9.30 	district an additional amount to recover any remaining unreimbursed costs of serving 
9.31 	pupils with a disability. The application must include a description of the costs and the 
9.32 	calculations used to determine the unreimbursed portion to be charged to the resident 
9.33 	district. Amounts approved by the commissioner under this paragraph must be included 
9.34 	in the tuition billings or aid adjustments under paragraph (a) or (b), or section 127A.47, 
9.35 	subdivision 7, paragraph (d) or (e), as applicable.
10.1 	(d) For purposes of this subdivision and section 127A.47, subdivision 7, paragraphs 
10.2 	(d) and (e), "general education revenue and referendum equalization aid" means the sum 
10.3 	of the general education revenue according to section 126C.10, subdivision 1, excluding 
10.4 	alternative teacher compensation revenue, plus the referendum equalization aid according 
10.5 	to section 126C.17, subdivision 7, as adjusted according to section 127A.47, subdivision 
10.6 	7, paragraphs (a) to (c).

10.7 	Sec. 16. Minnesota Statutes 2008, section 126C.05, subdivision 2, is amended to read:
10.8 		Subd. 2.Foreign exchange pupils. Notwithstanding section 124D.02, subdivision 
10.9 	3, or any other law to the contrary, a foreign exchange pupil enrolled in a district under a 
10.10 	cultural exchange program registered with the Office of the Secretary of State under 
10.11 	section 5A.02 may be counted as a resident pupil for the purposes of this chapter 
10.12 	and chapters 120B, 122A, 123A, 123B, 124D, 125A, and 127A, even if the pupil has 
10.13 	graduated from high school or the equivalent. 

10.14 	Sec. 17. Minnesota Statutes 2008, section 126C.10, subdivision 2a, is amended to read:
10.15 		Subd. 2a.Extended time revenue. (a) A school district's The extended time 
10.16 	revenue is equal to for a school district with extended time average daily membership in 
10.17 	the current fiscal year equals the product of $4,601 and the sum of the adjusted marginal 
10.18 	cost pupil units of the district for each pupil in average daily membership in excess of 1.0 
10.19 	and less than 1.2 according to section 126C.05, subdivision 8. 
10.20 	(b) A school district's extended time revenue may be used for extended day 
10.21 	programs, extended week programs, summer school, and other programming authorized 
10.22 	under the learning year program.

10.23 	Sec. 18. Minnesota Statutes 2008, section 126C.10, subdivision 13a, is amended to 
10.24 	read:
10.25 		Subd. 13a.Operating capital levy. To obtain operating capital revenue for fiscal 
10.26 	year 2007 years 2009  and later 2010, a district may levy an amount not more than the 
10.27 	product of its operating capital revenue for the fiscal year times the lesser of one or the 
10.28 	ratio of its adjusted net tax capacity per adjusted marginal cost pupil unit to the operating 
10.29 	capital equalizing factor. The operating capital equalizing factor equals $22,222 for fiscal 
10.30 	year 2006, and $10,700 for fiscal year 2007 years 2009  and later 2010.

10.31 	Sec. 19. Minnesota Statutes 2008, section 126C.10, subdivision 13b, is amended to 
10.32 	read:
11.1 		Subd. 13b.Operating capital aid. For fiscal years 2009 and 2010, a district's 
11.2 	operating capital aid equals its operating capital revenue minus its operating capital levy 
11.3 	times the ratio of the actual amount levied to the permitted levy.

11.4 	Sec. 20. Minnesota Statutes 2008, section 126C.10, subdivision 29, is amended to read:
11.5 		Subd. 29.Equity levy. To obtain equity revenue for fiscal year 2005 years 2009  and 
11.6 	later 2010, a district may levy an amount not more than the product of its equity revenue 
11.7 	for the fiscal year times the lesser of one or the ratio of its referendum market value per 
11.8 	resident marginal cost pupil unit to $476,000.

11.9 	Sec. 21. Minnesota Statutes 2008, section 126C.10, subdivision 30, is amended to read:
11.10 		Subd. 30.Equity aid. For fiscal years 2009 and 2010, a district's equity aid equals 
11.11 	its equity revenue minus its equity levy times the ratio of the actual amount levied to 
11.12 	the permitted levy.

11.13 	Sec. 22. Minnesota Statutes 2008, section 126C.10, subdivision 32, is amended to read:
11.14 		Subd. 32.Transition levy. To obtain transition revenue for fiscal year 2005 years 
11.15 	2009  and later 2010, a district may levy an amount not more than the product of its 
11.16 	transition revenue for the fiscal year times the lesser of one or the ratio of its referendum 
11.17 	market value per resident marginal cost pupil unit to $476,000.

11.18 	Sec. 23. Minnesota Statutes 2008, section 126C.10, subdivision 33, is amended to read:
11.19 		Subd. 33.Transition aid. (a) For fiscal year 2004, a district's transition aid equals 
11.20 	its transition revenue.
11.21 	(b) For fiscal year 2005 years 2009  and later 2010, a district's transition aid equals its 
11.22 	transition revenue minus its transition levy times the ratio of the actual amount levied to 
11.23 	the permitted levy.

11.24 	Sec. 24. Minnesota Statutes 2008, section 126C.10, subdivision 34, is amended to read:
11.25 		Subd. 34.Basic alternative teacher compensation aid. (a) For fiscal years 
11.26 	2007 and later year 2009 only, the basic alternative teacher compensation aid for a 
11.27 	school district with a plan approved under section 122A.414, subdivision 2b, equals 65
11.28 	73.1 percent of the alternative teacher compensation revenue under section 122A.415, 
11.29 	subdivision 1. The basic alternative teacher compensation aid for an intermediate school 
11.30 	district or charter school with a plan approved under section 122A.414, subdivisions 2a 
11.31 	and 2b, if the recipient is a charter school, equals $260 times the number of pupils enrolled 
12.1 	in the school on October 1 of the previous fiscal year, or on October 1 of the current fiscal 
12.2 	year for a charter school in the first year of operation, times the ratio of the sum of the 
12.3 	alternative teacher compensation aid and alternative teacher compensation levy for all 
12.4 	participating school districts to the maximum alternative teacher compensation revenue 
12.5 	for those districts under section 122A.415, subdivision 1.
12.6 	(b)  For fiscal year 2010 only, the basic alternative teacher compensation aid for a 
12.7 	school district with a plan approved under section 122A.414, subdivision 2b, equals 
12.8 	65 percent of the alternative teacher compensation revenue under section 122A.415, 
12.9 	subdivision 1. The basic alternative teacher compensation aid for an intermediate school 
12.10 	district or charter school with a plan approved under section 122A.414, subdivisions 
12.11 	2a and 2b, if the recipient is a charter school, equals $260 times the number of pupils 
12.12 	enrolled in the school on October 1 of the previous year, or on October 1 of the current 
12.13 	year for a charter school in the first year of operation, times the ratio of the sum of the 
12.14 	alternative teacher compensation aid and alternative teacher compensation levy for all 
12.15 	participating school districts to the maximum alternative teacher compensation revenue 
12.16 	for those districts under section 122A.415, subdivision 1.
12.17 	(c) Notwithstanding paragraphs (a) and (b) and section 122A.415, subdivision 
12.18 	1, the state total basic alternative teacher compensation aid entitlement must not 
12.19 	exceed $75,636,000 for fiscal year 2007 and later $51,838,000 for fiscal year 2009 and 
12.20 	$56,097,000 for fiscal year 2010. The commissioner must limit the amount of alternative 
12.21 	teacher compensation aid approved under section 122A.415 so as not to exceed these 
12.22 	limits.

12.23 	Sec. 25. Minnesota Statutes 2008, section 126C.10, subdivision 35, is amended to read:
12.24 		Subd. 35.Alternative teacher compensation levy. For fiscal year 2007 years 2009 
12.25 	 and later 2010, the alternative teacher compensation levy for a district receiving basic 
12.26 	alternative teacher compensation aid equals the product of (1) the difference between the 
12.27 	district's alternative teacher compensation revenue and the district's basic alternative 
12.28 	teacher compensation aid times (2) the lesser of one or the ratio of the district's adjusted 
12.29 	net tax capacity per adjusted pupil unit to $5,913.

12.30 	Sec. 26. Minnesota Statutes 2008, section 126C.10, subdivision 36, is amended to read:
12.31 		Subd. 36.Alternative teacher compensation aid. (a) For fiscal year 2007 years 
12.32 	2009  and later 2010, a district's alternative teacher compensation equalization aid equals 
12.33 	the district's alternative teacher compensation revenue minus the district's basic alternative 
12.34 	teacher compensation aid minus the district's alternative teacher compensation levy. If a 
13.1 	district does not levy the entire amount permitted, the alternative teacher compensation 
13.2 	equalization aid must be reduced in proportion to the actual amount levied.
13.3 	(b) A district's alternative teacher compensation aid equals the sum of the 
13.4 	district's basic alternative teacher compensation aid and the district's alternative teacher 
13.5 	compensation equalization aid.

13.6 	Sec. 27. Minnesota Statutes 2008, section 126C.13, is amended by adding a 
13.7 	subdivision to read:
13.8 		Subd. 3a.Consolidated tax rate. The commissioner must establish the consolidated 
13.9 	tax rate by July 1 of each year for levies payable in the following year. The consolidated 
13.10 	tax capacity rate must be a rate rounded up to the nearest hundredth of a percent that, 
13.11 	when applied to the adjusted net tax capacity for all districts, raises the amounts specified 
13.12 	in this subdivision. The consolidated tax rate must be the rate that raises $227,259,000 
13.13 	for fiscal year 2011, $228,674,000 for fiscal year 2012, and $234,940,000 for fiscal year 
13.14 	2013 and later years. The consolidated tax rate may not be changed due to changes 
13.15 	or corrections made to a district's adjusted net tax capacity after the tax rate has been 
13.16 	established. A school district may adopt a board resolution to reduce its levy below the 
13.17 	amount calculated in this section.

13.18 	Sec. 28. Minnesota Statutes 2008, section 126C.13, is amended by adding a 
13.19 	subdivision to read:
13.20 		Subd. 3b.Consolidated levy. To obtain general education revenue, a district may 
13.21 	levy an amount not to exceed the consolidated tax rate times the adjusted net tax capacity 
13.22 	of the district for the preceding year. If the amount of the consolidated levy would exceed 
13.23 	the general education revenue, the consolidated levy must be determined according 
13.24 	to subdivision 3c. If a district adopts a board resolution to reduce its consolidated 
13.25 	levy according to subdivision 3a, the district's general education aid shall be reduced 
13.26 	proportionately.

13.27 	Sec. 29. Minnesota Statutes 2008, section 126C.13, is amended by adding a 
13.28 	subdivision to read:
13.29 		Subd. 3c.Consolidated levy; districts off the formula. If the amount of the 
13.30 	consolidated levy for a district exceeds the district's general education revenue, the amount 
13.31 	of the consolidated levy must be limited to the following:
13.32 	(1) the district's general education revenue; minus
14.1 	(2) payments made for the same school year according to section 126C.21, 
14.2 	subdivision 3.
14.3 	For purposes of statutory cross-reference, a levy made according to this subdivision shall 
14.4 	be construed to be the levy made according to subdivision 3b.

14.5 	Sec. 30. Minnesota Statutes 2008, section 126C.13, subdivision 4, is amended to read:
14.6 		Subd. 4.General education aid.  (a)  For fiscal years 2007 2009  and later 2010, a 
14.7 	district's general education aid is the sum of the following amounts:
14.8 	(1) general education revenue, excluding equity revenue, total operating capital 
14.9 	revenue, alternative teacher compensation revenue, and transition revenue;
14.10 	(2) operating capital aid under section 126C.10, subdivision 13b;
14.11 	(3) equity aid under section 126C.10, subdivision 30;
14.12 	(4) alternative teacher compensation aid under section 126C.10, subdivision 36;
14.13 	(5) transition aid under section 126C.10, subdivision 33;
14.14 	(6) shared time aid under section 126C.01, subdivision 7;
14.15 	(7) referendum aid under section 126C.17, subdivisions 7 and 7a; and
14.16 	(8) online learning aid according to section 124D.096.
14.17 	(b) For fiscal year 2011 and later, a district's general education aid is the sum of 
14.18 	the following amounts:
14.19 	(1) the product of:
14.20 	(i) the difference between the general education revenue and the consolidated levy; 
14.21 	times
14.22 	(ii) the ratio of the actual amount levied to the permitted levy;
14.23 	(2) shared time aid according to section 126C.01, subdivision 7;
14.24 	(3) referendum aid according to section 126C.17, subdivisions 7 and 7a; and
14.25 	(4) online learning aid according to section 124D.096.

14.26 	Sec. 31. Minnesota Statutes 2008, section 126C.15, subdivision 2, is amended to read:
14.27 		Subd. 2.Building allocation. (a) A district must allocate its compensatory 
14.28 	revenue to each school building in the district where the children who have generated the 
14.29 	revenue are served unless the school district has received permission under Laws 2005, 
14.30 	First Special Session chapter 5, article 1, section 50, to allocate compensatory revenue 
14.31 	according to student performance measures developed by the school board.
14.32 	(b) Notwithstanding paragraph (a), a district may allocate up to five percent of the 
14.33 	amount of compensatory revenue that the district receives to school sites according to a 
14.34 	plan adopted by the school board. The money reallocated under this paragraph must be 
15.1 	spent for the purposes listed in subdivision 1, but may be spent on students in any grade, 
15.2 	including students attending school readiness or other prekindergarten programs.
15.3 	(c) For the purposes of this section and section 126C.05, subdivision 3, "building" 
15.4 	means education site as defined in section 123B.04, subdivision 1.
15.5 	(d) If the pupil is served at a site other than one owned and operated by the district, 
15.6 	the revenue shall be paid to the district and used for services for pupils who generate 
15.7 	the revenue Notwithstanding section 123A. 26, subdivision 1, compensatory revenue 
15.8 	generated by students served at a cooperative unit shall be paid to the cooperative unit.
15.9 	(e) A district with school building openings, school building closings, changes 
15.10 	in attendance area boundaries, or other changes in programs or student demographics 
15.11 	between the prior year and the current year may reallocate compensatory revenue among 
15.12 	sites to reflect these changes. A district must report to the department any adjustments it 
15.13 	makes according to this paragraph and the department must use the adjusted compensatory 
15.14 	revenue allocations in preparing the report required under section 123B.76, subdivision 3, 
15.15 	paragraph (c).

15.16 	Sec. 32. Minnesota Statutes 2008, section 126C.15, subdivision 4, is amended to read:
15.17 		Subd. 4.Separate accounts. Each district and cooperative unit that receives basic 
15.18 	skills revenue shall maintain separate accounts to identify expenditures for salaries and 
15.19 	programs related to basic skills revenue.

15.20 	Sec. 33. Minnesota Statutes 2008, section 126C.17, subdivision 9, is amended to read:
15.21 		Subd. 9.Referendum revenue. (a) The revenue authorized by section 126C.10, 
15.22 	subdivision 1, may be increased in the amount approved by the voters of the district at a 
15.23 	referendum called for the purpose. The referendum may be called by the board or shall be 
15.24 	called by the board upon written petition of qualified voters of the district. The referendum 
15.25 	must be conducted one or two calendar years before the increased levy authority, if 
15.26 	approved, first becomes payable. Only one election to approve an increase may be held 
15.27 	in a calendar year. Unless the referendum is conducted by mail under subdivision 11, 
15.28 	paragraph (a), the referendum must be held on the first Tuesday after the first Monday 
15.29 	in November. The ballot must state the maximum amount of the increased revenue per 
15.30 	resident marginal cost pupil unit. The ballot may state a schedule, determined by the 
15.31 	board, of increased revenue per resident marginal cost pupil unit that differs from year 
15.32 	to year over the number of years for which the increased revenue is authorized or may 
15.33 	state that the amount shall increase annually by the rate of inflation. For this purpose, the 
15.34 	rate of inflation shall be the annual inflationary increase calculated under subdivision 2, 
16.1 	paragraph (b). The ballot may state that existing referendum levy authority is expiring. In 
16.2 	this case, the ballot may also compare the proposed levy authority to the existing expiring 
16.3 	levy authority, and express the proposed increase as the amount, if any, over the expiring 
16.4 	referendum levy authority. The ballot must designate the specific number of years, not to 
16.5 	exceed ten, for which the referendum authorization applies. The ballot, including a ballot 
16.6 	on the question to revoke or reduce the increased revenue amount under paragraph (c), 
16.7 	must abbreviate the term "per resident marginal cost pupil unit" as "per pupil." The notice 
16.8 	required under section 275.60 may be modified to read, in cases of renewing existing 
16.9 	levies at the same amount per pupil as in the previous year:
16.10 	"BY VOTING "YES" ON THIS BALLOT QUESTION, YOU ARE VOTING 
16.11 	TO EXTEND AN EXISTING PROPERTY TAX REFERENDUM THAT IS 
16.12 	SCHEDULED TO EXPIRE."
16.13 	The ballot may contain a textual portion with the information required in this 
16.14 	subdivision and a question stating substantially the following:
16.15 	"Shall the increase in the revenue proposed by (petition to) the board of ........., 
16.16 	School District No. .., be approved?"
16.17 	If approved, an amount equal to the approved revenue per resident marginal cost 
16.18 	pupil unit times the resident marginal cost pupil units for the school year beginning in 
16.19 	the year after the levy is certified shall be authorized for certification for the number of 
16.20 	years approved, if applicable, or until revoked or reduced by the voters of the district at a 
16.21 	subsequent referendum.
16.22 	(b) The board must prepare and deliver by first class mail at least 15 days but no more 
16.23 	than 30 days before the day of the referendum to each taxpayer a notice of the referendum 
16.24 	and the proposed revenue increase. The board need not mail more than one notice to any 
16.25 	taxpayer. For the purpose of giving mailed notice under this subdivision, owners must be 
16.26 	those shown to be owners on the records of the county auditor or, in any county where 
16.27 	tax statements are mailed by the county treasurer, on the records of the county treasurer. 
16.28 	Every property owner whose name does not appear on the records of the county auditor 
16.29 	or the county treasurer is deemed to have waived this mailed notice unless the owner 
16.30 	has requested in writing that the county auditor or county treasurer, as the case may be, 
16.31 	include the name on the records for this purpose. The notice must project the anticipated 
16.32 	amount of tax increase in annual dollars for typical residential homesteads, agricultural 
16.33 	homesteads, apartments, and commercial-industrial property within the school district.
16.34 	The notice for a referendum may state that an existing referendum levy is expiring 
16.35 	and project the anticipated amount of increase over the existing referendum levy in 
17.1 	the first year, if any, in annual dollars for typical residential homesteads, agricultural 
17.2 	homesteads, apartments, and commercial-industrial property within the district.
17.3 	The notice must include the following statement: "Passage of this referendum will 
17.4 	result in an increase in your property taxes." However, in cases of renewing existing levies, 
17.5 	the notice may include the following statement: "Passage of this referendum extends an 
17.6 	existing operating referendum at the same amount per pupil as in the previous year." 
17.7 	(c) A referendum on the question of revoking or reducing the increased revenue 
17.8 	amount authorized pursuant to paragraph (a) may be called by the board and shall be called 
17.9 	by the board upon the written petition of qualified voters of the district. A referendum to 
17.10 	revoke or reduce the revenue amount must state the amount per resident marginal cost 
17.11 	pupil unit by which the authority is to be reduced. Revenue authority approved by the 
17.12 	voters of the district pursuant to paragraph (a) must be available to the school district at 
17.13 	least once before it is subject to a referendum on its revocation or reduction for subsequent 
17.14 	years. Only one revocation or reduction referendum may be held to revoke or reduce 
17.15 	referendum revenue for any specific year and for years thereafter.
17.16 	(d) A petition authorized by paragraph (a) or (c) is effective if signed by a number of 
17.17 	qualified voters in excess of 15 percent of the registered voters of the district on the day 
17.18 	the petition is filed with the board. A referendum invoked by petition must be held on the 
17.19 	date specified in paragraph (a).
17.20 	(e) The approval of 50 percent plus one of those voting on the question is required to 
17.21 	pass a referendum authorized by this subdivision.
17.22 	(f) (e) At least 15 days before the day of the referendum, the district must submit a 
17.23 	copy of the notice required under paragraph (b) to the commissioner and to the county 
17.24 	auditor of each county in which the district is located. Within 15 days after the results 
17.25 	of the referendum have been certified by the board, or in the case of a recount, the 
17.26 	certification of the results of the recount by the canvassing board, the district must notify 
17.27 	the commissioner of the results of the referendum.

17.28 	EFFECTIVE DATE. This section is effective for petitions filed after July 1, 2009.

17.29 	Sec. 34. Minnesota Statutes 2008, section 126C.21, subdivision 3, is amended to read:
17.30 		Subd. 3.County apportionment deduction. Each year the amount of money 
17.31 	apportioned to a district for that year pursuant to sections127A.34, subdivision 2, and 
17.32 	272.029, subdivision 6,  multiplied by the wind energy factor according to section 
17.33 	127A.335, must be deducted from the general education aid earned by that district for the 
17.34 	same year or from aid earned from other state sources. 

18.1 	EFFECTIVE DATE. This section is effective for fiscal year 2010 and later.

18.2 	Sec. 35. Minnesota Statutes 2008, section 126C.21, is amended by adding a 
18.3 	subdivision to read:
18.4 		Subd. 6.Statewide average daily membership aid adjustment. (a) Each year 
18.5 	the commissioner shall reduce the general education aid earned by school districts and 
18.6 	charter schools based on the statewide average daily membership aid adjustment. The 
18.7 	commissioner shall apportion the statewide average daily membership aid adjustment 
18.8 	based on each district and charter school's proportionate share of the statewide total 
18.9 	adjusted average daily membership for that year. The statewide average daily membership 
18.10 	aid adjustment for fiscal year 2010 is $544,003,000. The statewide average daily 
18.11 	membership aid adjustment for fiscal year 2011 is $424,385,000. The statewide average 
18.12 	daily membership aid adjustment for fiscal year 2012 and later is $488,161,000. 
18.13 	(b) Notwithstanding paragraph (a), $200,000,000 of the statewide average daily 
18.14 	membership adjustment for fiscal year 2011 only shall be apportioned based on each 
18.15 	district and charter school's proportionate share of the statewide total adjusted average 
18.16 	daily membership for fiscal year 2010.

18.17 	Sec. 36. Minnesota Statutes 2008, section 126C.40, subdivision 6, is amended to read:
18.18 		Subd. 6.Lease purchase; installment buys. (a) Upon application to, and approval 
18.19 	by, the commissioner in accordance with the procedures and limits in subdivision 1, 
18.20 	paragraphs (a) and (b), a district, as defined in this subdivision, may:
18.21 	(1) purchase real or personal property under an installment contract or may lease 
18.22 	real or personal property with an option to purchase under a lease purchase agreement, by 
18.23 	which installment contract or lease purchase agreement title is kept by the seller or vendor 
18.24 	or assigned to a third party as security for the purchase price, including interest, if any; and
18.25 	(2) annually levy the amounts necessary to pay the district's obligations under the 
18.26 	installment contract or lease purchase agreement.
18.27 	(b) The obligation created by the installment contract or the lease purchase 
18.28 	agreement must not be included in the calculation of net debt for purposes of section 
18.29 	475.53, and does not constitute debt under other law. An election is not required in 
18.30 	connection with the execution of the installment contract or the lease purchase agreement.  
18.31 	(c) The proceeds of the levy authorized by this subdivision must not be used to 
18.32 	acquire a facility to be primarily used for athletic or school administration purposes.
18.33 	(d) For the purposes of this subdivision, "district" means:
19.1 	(1) a racially isolated school district or a school district with a racially identifiable 
19.2 	school required to have a comprehensivedesegregation or integration plan for the
19.3 	elimination of segregationwhich is eligible for revenue under section 124D.86, 
19.4 	subdivision 3, clause (1), (2), or (3), and whose plan has been determined by the 
19.5 	commissioner to be in compliance with Department of Education rules relating to equality 
19.6 	of educational opportunity and school desegregation and, for a district eligible for 
19.7 	revenue under section 124D.86, subdivision 3, clause (4) or (5), where the acquisition of 
19.8 	property under this subdivision is determined by the commissioner to contribute to the 
19.9 	implementation of the desegregation plan; or  
19.10 	(2) a school district that participates in a joint program for interdistrict desegregation 
19.11 	with a district defined in clause (1) if the facility acquired under this subdivision is to 
19.12 	be primarily used for the joint program and the commissioner determines that the joint 
19.13 	programs are being undertaken to implement the districts' desegregation plan.
19.14 	(e) Notwithstanding subdivision 1, the prohibition against a levy by a district to lease 
19.15 	or rent a district-owned building to itself does not apply to levies otherwise authorized 
19.16 	by this subdivision.
19.17 	(f) For the purposes of this subdivision, any references in subdivision 1 to building 
19.18 	or land shall include personal property.

19.19 	Sec. 37. Minnesota Statutes 2008, section 126C.455, is amended to read:
19.20 	126C.455 SWIMMING POOL LEVY.
19.21 	Each year, a school district with its home office located in a county that has (i) a 
19.22 	population density of ten or fewer persons per square mile according to the 2000 census of 
19.23 	population; (ii) an international border; and (iii) more than one school district within its 
19.24 	boundaries, may levy for the net operational costs of a swimming pool. The levy may 
19.25 	not exceed the net actual costs of operation of the swimming pool for the previous year. 
19.26 	Net actual costs are defined as operating costs less any operating revenues and less any 
19.27 	payments from other local governmental units.

19.28 	EFFECTIVE DATE. This section is effective for taxes payable in 2010 and later.

19.29 	Sec. 38. [127A.335] PERMANENT SCHOOL TRUST FUND WIND ENERGY 
19.30 	REVENUE.
19.31 	For fiscal year 2010 and later, the commissioner shall transfer to the permanent 
19.32 	school trust fund an amount equal to the amount of money apportioned to all school 
19.33 	districts for that year according to section 272.029, subdivision 6, multiplied by the wind 
20.1 	energy factor. The wind energy factor for fiscal year 2010 and later is 0.5. These funds 
20.2 	shall be managed as principal to the permanent school trust fund.

20.3 	Sec. 39. [127A.431] REDUCTION OF AID FOR NOT PROVIDING REQUIRED 
20.4 	HOURS OF INSTRUCTION.
20.5 	The commissioner shall reduce the state aid paid to a school district or charter 
20.6 	school that does not provide instruction for at least the number of hours required under 
20.7 	section 120A.41. If instruction is not provided for the required number of hours, state aid 
20.8 	shall be reduced by the ratio that the difference between the required number of hours 
20.9 	and the number of hours instruction is provided bears to the required number of hours, 
20.10 	multiplied by 60 percent of the basic revenue, as defined in section 126C.10, subdivision 
20.11 	2, of the district or charter school for that year. However, a district or charter school not 
20.12 	providing the required number of hours may appeal to the commissioner for a waiver of 
20.13 	the state aid reduction if (1) the circumstances causing loss of instructional time below the 
20.14 	required minimum number of hours are beyond the control of the board, and (2) a good 
20.15 	faith attempt is made to make up time lost due to these circumstances.

20.16 	Sec. 40. Minnesota Statutes 2008, section 127A.47, subdivision 7, is amended to read:
20.17 		Subd. 7.Alternative attendance programs. The general education aid and special 
20.18 	education aid for districts must be adjusted for each pupil attending a nonresident district 
20.19 	under sections 123A.05 to 123A.08, 124D.03, 124D.08, and 124D.68. The adjustments 
20.20 	must be made according to this subdivision.
20.21 	(a) General education aid paid to a resident district must be reduced by an amount 
20.22 	equal to the referendum equalization aid attributable to the pupil in the resident district.
20.23 	(b) General education aid paid to a district serving a pupil in programs listed in this 
20.24 	subdivision must be increased by an amount equal to the greater of (1) the referendum 
20.25 	equalization aid attributable to the pupil in the nonresident district; or (2) the product of 
20.26 	the district's open enrollment concentration index, the maximum amount of referendum 
20.27 	revenue in the first tier, and the district's net open enrollment pupil units for that year. A 
20.28 	district's open enrollment concentration index equals the greater of: (i) zero, or (ii) the 
20.29 	lesser of 1.0, or the difference between the district's ratio of open enrollment pupil units 
20.30 	served to its resident pupil units for that year and 0.2. This clause does not apply to a 
20.31 	school district where more than 50 percent of the open enrollment students are enrolled 
20.32 	solely in online learning courses.
21.1 	(c) If the amount of the reduction to be made from the general education aid of the 
21.2 	resident district is greater than the amount of general education aid otherwise due the 
21.3 	district, the excess reduction must be made from other state aids due the district.
21.4 	(d) For fiscal year 2006, the district of residence must pay tuition to a district or an 
21.5 	area learning center, operated according to paragraph (f), providing special instruction and 
21.6 	services to a pupil with a disability, as defined in section 125A.02, or a pupil, as defined in 
21.7 	section 125A.51, who is enrolled in a program listed in this subdivision. The tuition must 
21.8 	be equal to (1) the actual cost of providing special instruction and services to the pupil, 
21.9 	including a proportionate amount for special transportation and unreimbursed building 
21.10 	lease and debt service costs for facilities used primarily for special education, minus (2) 
21.11 	if the pupil receives special instruction and services outside the regular classroom for 
21.12 	more than 60 percent of the school day, the amount of general education revenue and 
21.13 	referendum aid attributable to that pupil for the portion of time the pupil receives special 
21.14 	instruction and services outside of the regular classroom, excluding portions attributable to 
21.15 	district and school administration, district support services, operations and maintenance, 
21.16 	capital expenditures, and pupil transportation, minus (3) special education aid attributable 
21.17 	to that pupil, that is received by the district providing special instruction and services. 
21.18 	For purposes of this paragraph, general education revenue and referendum equalization 
21.19 	aid attributable to a pupil must be calculated using the serving district's average general 
21.20 	education revenue and referendum equalization aid per adjusted pupil unit.
21.21 	(e) For fiscal year 2007 and later, special education aid paid to a resident district 
21.22 	must be reduced by an amount equal to (1) the actual cost of providing special instruction 
21.23 	and services, including special transportation and unreimbursed building lease and debt 
21.24 	service costs for facilities used primarily for special education, for a pupil with a disability, 
21.25 	as defined in section 125A.02, or a pupil, as defined in section 125A.51, who is enrolled 
21.26 	in a program listed in this subdivision, minus (2) if the pupil receives special instruction 
21.27 	and services outside the regular classroom for more than 60 percent of the school day, 
21.28 	the amount of general education revenue and referendum equalization aid attributable 
21.29 	to that pupil for the portion of time the pupil receives special instruction and services 
21.30 	outside of the regular classroom, excluding portions attributable to district and school 
21.31 	administration, district support services, operations and maintenance, capital expenditures, 
21.32 	and pupil transportation, minus (3) special education aid attributable to that pupil, that is 
21.33 	received by the district providing special instruction and services. For purposes of this 
21.34 	paragraph, general education revenue and referendum equalization aid attributable to a 
21.35 	pupil must be calculated using the serving district's average general education revenue 
21.36 	and referendum equalization aid per adjusted pupil unit. Special education aid paid to the 
22.1 	district or cooperative providing special instruction and services for the pupil, or to the 
22.2 	fiscal agent district for a cooperative, must be increased by the amount of the reduction 
22.3 	in the aid paid to the resident district. If the resident district's special education aid is 
22.4 	insufficient to make the full adjustment, the remaining adjustment shall be made to other 
22.5 	state aids due to the district.
22.6 	(f) An area learning center operated by a service cooperative, intermediate district, 
22.7 	education district, or a joint powers cooperative may elect through the action of the 
22.8 	constituent boards to charge the resident district tuition for pupils rather than to have the 
22.9 	general education revenue paid to a fiscal agent school district. Except as provided in 
22.10 	paragraph (d) or (e), the district of residence must pay tuition equal to at least 90 percent of 
22.11 	the district average general education revenue per pupil unit minus an amount equal to the 
22.12 	product of the formula allowance according to section 126C.10, subdivision 2, times .0485, 
22.13 	calculated without basic skills compensatory revenue and transportation sparsity revenue, 
22.14 	times the number of pupil units for pupils attending the area learning center, plus the 
22.15 	amount of compensatory revenue generated by pupils attending the area learning center.

22.16 	Sec. 41. Minnesota Statutes 2008, section 127A.49, subdivision 2, is amended to read:
22.17 		Subd. 2.Abatements. Whenever by virtue of chapter 278, sections 270C.86, 
22.18 	375.192, or otherwise, the net tax capacity or referendum market value of any district for 
22.19 	any taxable year is changed after the taxes for that year have been spread by the county 
22.20 	auditor and the local tax rate as determined by the county auditor based upon the original 
22.21 	net tax capacity is applied upon the changed net tax capacities, the county auditor shall, 
22.22 	prior to February 1 of each year, certify to the commissioner of education the amount of 
22.23 	any resulting net revenue loss that accrued to the district during the preceding year. Each 
22.24 	year, the commissioner shall pay an abatement adjustment to the district in an amount 
22.25 	calculated according to the provisions of this subdivision. This amount shall be deducted 
22.26 	from the amount of the levy authorized by section 126C.46. The amount of the abatement 
22.27 	adjustment must be the product of:
22.28 	(1) the net revenue loss as certified by the county auditor, times
22.29 	(2) the ratio of:
22.30 	(i) the sum of the amounts of the district's certified levy in the third preceding year 
22.31 	according to the following:
22.32 	(A) section 123B.57, if the district received health and safety aid according to that 
22.33 	section for the second preceding year;
22.34 	(B) section 124D.20, if the district received aid for community education programs 
22.35 	according to that section for the second preceding year;
23.1 	(C) section 124D.135, subdivision 3, if the district received early childhood family 
23.2 	education aid according to section 124D.135 for the second preceding year; 
23.3 	(D) section 126C.17, subdivision 6, if the district received referendum equalization 
23.4 	aid according to that section for the second preceding year; 
23.5 	(E) section 126C.13, if the district received general education aid according to 
23.6 	section 126C.13, subdivision 4, paragraph (b), clause (1), item (i), of that section in the 
23.7 	second preceding year;
23.8 	(F) section 126C.10, subdivision 13a, if the district received operating capital aid 
23.9 	according to section 126C.10, subdivision 13b, in the second preceding year;
23.10 	(F) (G) section 126C.10, subdivision 29, if the district received equity aid according 
23.11 	to section 126C.10, subdivision 30, in the second preceding year;
23.12 	(G) (H) section 126C.10, subdivision 32, if the district received transition aid 
23.13 	according to section 126C.10, subdivision 33, in the second preceding year;
23.14 	(H) (I) section 123B.53, subdivision 5, if the district received debt service 
23.15 	equalization aid according to section 123B.53, subdivision 6, in the second preceding year;
23.16 	(I) (J) section 124D.22, subdivision 3, if the district received school-age care aid 
23.17 	according to section 124D.22, subdivision 4, in the second preceding year;
23.18 	(J) (K) section 123B.591, subdivision 3, if the district received deferred maintenance 
23.19 	aid according to section 123B.591, subdivision 4, in the second preceding year; and
23.20 	(K) (L) section 126C.10, subdivision 35, if the district received alternative teacher 
23.21 	compensation equalization aid according to section 126C.10, subdivision 36, paragraph 
23.22 	(a), in the second preceding year, or section 122A.415, subdivision 5, if the district 
23.23 	received alternative compensation equalization aid according to section 122A.415, 
23.24 	subdivision 6, in the second preceding year; to
23.25 	(ii) the total amount of the district's certified levy in the third preceding December, 
23.26 	plus or minus auditor's adjustments.

23.27 	Sec. 42. Minnesota Statutes 2008, section 127A.49, subdivision 3, is amended to read:
23.28 		Subd. 3.Excess tax increment. (a) If a return of excess tax increment is made to a 
23.29 	district pursuant to sections 469.176, subdivision 2, and 469.177, subdivision 9, or upon 
23.30 	decertification of a tax increment district, the school district's aid and levy limitations 
23.31 	must be adjusted for the fiscal year in which the excess tax increment is paid under the 
23.32 	provisions of this subdivision.
23.33 	(b) An amount must be subtracted from the district's aid for the current fiscal year 
23.34 	equal to the product of:
23.35 	(1) the amount of the payment of excess tax increment to the district, times
24.1 	(2) the ratio of:
24.2 	(i) the sum of the amounts of the district's certified levy for the fiscal year in which 
24.3 	the excess tax increment is paid according to the following:
24.4 	(A) section 123B.57, if the district received health and safety aid according to that 
24.5 	section for the second preceding year;
24.6 	(B) section 124D.20, if the district received aid for community education programs 
24.7 	according to that section for the second preceding year;
24.8 	(C) section 124D.135, subdivision 3, if the district received early childhood family 
24.9 	education aid according to section 124D.135 for the second preceding year; 
24.10 	(D) section 126C.17, subdivision 6, if the district received referendum equalization 
24.11 	aid according to that section for the second preceding year; 
24.12 	(E) section 126C.13, if the district received general education aid according to 
24.13 	section 126C.13, subdivision 4, paragraph (b), clause (1), item (i), of that section in the 
24.14 	second preceding year;
24.15 	(F) section 126C.10, subdivision 13a, if the district received operating capital aid 
24.16 	according to section 126C.10, subdivision 13b, in the second preceding year;
24.17 	(F) (G) section 126C.10, subdivision 29, if the district received equity aid according 
24.18 	to section 126C.10, subdivision 30, in the second preceding year;
24.19 	(G) (H) section 126C.10, subdivision 32, if the district received transition aid 
24.20 	according to section 126C.10, subdivision 33, in the second preceding year;
24.21 	(H) (I) section 123B.53, subdivision 5, if the district received debt service 
24.22 	equalization aid according to section 123B.53, subdivision 6, in the second preceding year;
24.23 	(I) (J) section 124D.22, subdivision 3, if the district received school-age care aid 
24.24 	according to section 124D.22, subdivision 4, in the second preceding year;
24.25 	(J) (K) section 123B.591, subdivision 3, if the district received deferred maintenance 
24.26 	aid according to section 123B.591, subdivision 4, in the second preceding year; and
24.27 	(K) (L) section 126C.10, subdivision 35, if the district received alternative teacher 
24.28 	compensation equalization aid according to section 126C.10, subdivision 36, paragraph 
24.29 	(a), in the second preceding year, or section 122A.415, subdivision 5, if the district 
24.30 	received alternative compensation equalization aid according to section 122A.415, 
24.31 	subdivision 6, in the second preceding year; to
24.32 	(ii) the total amount of the district's certified levy for the fiscal year, plus or minus 
24.33 	auditor's adjustments.
24.34 	(c) An amount must be subtracted from the school district's levy limitation for the 
24.35 	next levy certified equal to the difference between:
24.36 	(1) the amount of the distribution of excess increment; and
25.1 	(2) the amount subtracted from aid pursuant to clause (a).
25.2 	If the aid and levy reductions required by this subdivision cannot be made to the aid 
25.3 	for the fiscal year specified or to the levy specified, the reductions must be made from 
25.4 	aid for subsequent fiscal years, and from subsequent levies. The school district must use 
25.5 	the payment of excess tax increment to replace the aid and levy revenue reduced under 
25.6 	this subdivision.
25.7 	(d) This subdivision applies only to the total amount of excess increments received 
25.8 	by a district for a calendar year that exceeds $25,000.

25.9 	Sec. 43. ALTERNATIVE TEACHER COMPENSATION; ST. CLOUD.
 25.10 	Notwithstanding Minnesota Statutes, sections 122A.413 and 122A.414, for fiscal 
25.11 	year 2009 only, Independent School District No. 742, St. Cloud, must receive alternative 
25.12 	teacher compensation revenue under Minnesota Statutes, sections 122A.415 and 126C.10, 
25.13 	subdivisions 34, 35, and 36, without interruption. The school district must continue 
25.14 	to make progress towards complying with the requirements for alternative teacher 
25.15 	compensation under Minnesota Statutes, sections 122A.413 and 122A.414.

25.16 	Sec. 44. CONSOLIDATED LEVY ADJUSTMENT.
 25.17 	(a) For taxes payable in 2010 only, a school district whose consolidated levy, as 
25.18 	computed by the commissioner under Minnesota Statutes, section 126C.13, subdivision 
25.19 	3a, is greater than the sum of the district's equity, transition, and operating capital levies 
25.20 	that the districts would have levied for taxes payable in 2010 under Minnesota Statutes 
25.21 	2008, section 126C.10, subdivisions 13a, 29, and 32, based on the February 2009 forecast, 
25.22 	shall be eligible for a consolidated levy adjustment. An eligible district's consolidated levy 
25.23 	adjustment shall be equal to the difference to the district's consolidated levy computed by 
25.24 	the commissioner according to Minnesota Statutes, section 126C.13, subdivision 3a, minus 
25.25 	the sum of the district's equity, transition, and operating capital levies that districts would 
25.26 	have levied for taxes payable in 2010 under Minnesota Statutes 2008, section 126C.10, 
25.27 	subdivisions 13a, 29, and 32, as computed according to the February 2009 forecast.
25.28 	(b) Notwithstanding Minnesota Statutes, section 126C.13, subdivision 3a, for 
25.29 	fiscal year 2011 only, the commissioner of education shall reduce an eligible district's 
25.30 	consolidated levy by the amount of an eligible district's consolidated levy adjustment. 
25.31 	The commissioner shall increase an eligible district's general education state aid under 
25.32 	Minnesota Statutes, section 126C.13, subdivision 4, by the amount of the consolidated 
25.33 	levy adjustment.
26.1 	(c) The commissioner shall include the state aid under this section in the payment 
26.2 	schedule under Minnesota Statutes, section 127A.45, as if it were general education 
26.3 	aid. The state aid entitlement for this section must not exceed $22,017,000. If this 
26.4 	amount is insufficient, the commissioner shall prorate the aid and adjust property taxes 
26.5 	proportionately among eligible school districts.

26.6 	Sec. 45. EQUALIZING FACTORS.
 26.7 	The commissioner shall adjust each referendum market value equalizing factor 
26.8 	established under Minnesota Statutes, chapter 126C, by dividing the equalizing factor by 
26.9 	the ratio of the statewide referendum market value as calculated using the definition 
26.10 	of referendum market value that was in effect prior to the 2009 legislative session for 
26.11 	assessment year 2009 to the statewide referendum market value that is in effect after the 
26.12 	2009 legislative session for that assessment year.

26.13 	EFFECTIVE DATE. This section is effective for taxes payable in 2010 and later.

26.14 	Sec. 46. LEARNING AND DEVELOPMENT REVENUE; TEMPORARY 
26.15 	SUSPENSION.
 26.16 	Notwithstanding Minnesota Statutes, section 126C.12, subdivisions 4 and 5, for 
26.17 	fiscal years 2010 and 2011 only, a school district or charter school may use the learning 
26.18 	and development revenue reserve under Minnesota Statutes, section 126C.12, subdivision 
26.19 	1, according to the requirements of general education revenue under Minnesota Statutes, 
26.20 	section 126C.13, subdivision 5.

26.21 	EFFECTIVE DATE. This section is effective July 1, 2009.

26.22 	Sec. 47. RESTORING SUPPORT FOR GENERAL EDUCATION.
 26.23 	(a) Notwithstanding Minnesota Statutes, section 126C.21, subdivision 6, the 
26.24 	statewide average daily membership aid adjustment for fiscal years 2010 only shall be 
26.25 	reduced by $519,617,000. The commissioner must allocate federal aid appropriated under 
26.26 	this act from the fiscal stabilization account in the federal fund to reduce the statewide 
26.27 	average daily membership aid adjustment under Minnesota Statutes, section 126C.21, 
26.28 	subdivision 6, according to this section.
26.29 	(b) Notwithstanding paragraph (a), the governor shall release the federal aid in 
26.30 	paragraph (a) in two phases. The governor shall release $319,617,000 of the amount 
26.31 	in paragraph (a) in fiscal year 2010 to reduce the statewide average daily membership 
26.32 	aid adjustment in that year. The governor shall release $200,000,000 of the amount in 
27.1 	paragraph (a) in fiscal year 2011 to reduce the statewide average daily membership aid 
27.2 	adjustment in that year.
27.3 	(c) The commissioner shall allocate the fiscal year 2011 aid under paragraph (b) 
27.4 	based on a district or charter school's proportionate share of the statewide total adjusted 
27.5 	average daily membership for fiscal year 2010.

27.6 	Sec. 48. SAFE SCHOOLS LEVY; TEMPORARY SUSPENSION.
 27.7 	Notwithstanding Minnesota Statutes, section 126C.44, for fiscal years 2010 and 
27.8 	2011 only, a school district that receives safe school levy funds under Minnesota Statutes, 
27.9 	section 126C.44, may use those funds according to the requirement of general education 
27.10 	revenue under Minnesota Statutes, section 126C.13, subdivision 5.

27.11 	EFFECTIVE DATE. This section is effective July 1, 2009.

27.12 	Sec. 49. TRANSITION REVENUE; BROOKLYN CENTER.
 27.13 	Notwithstanding Minnesota Statutes, section 126C.10, subdivision 31, for fiscal year 
27.14 	2011 and later, the transition revenue allowance for Independent School District No. 286, 
27.15 	Brooklyn Center, equals $221 plus the transition revenue allowance established under 
27.16 	Minnesota Statutes, section 126C.10, subdivision 31.

27.17 	EFFECTIVE DATE. This section is effective for revenue for fiscal year 2011 
27.18 	and later.

27.19 	Sec. 50. APPROPRIATIONS; STATE.
 27.20 		Subdivision 1.Department of Education. The sums indicated in this section are 
27.21 	appropriated from the general fund to the Department of Education for the fiscal years 
27.22 	designated.
27.23 		Subd. 2.General education aid. For general education aid under Minnesota 
27.24 	Statutes, section 126C.13, subdivision 4:

27.25		$
	 5,101,495,000
	.....
	2010
	
27.26		$
	 5,197,198,000
	.....
	2011
	
27.27 	The 2010 appropriation includes $555,864,000 for 2009 and $4,545,631,000 for 
27.28 	2010.
27.29 	The 2011 appropriation includes $505,070,000 for 2010 and $4,692,128,000 for 
27.30 	2011.
28.1 		Subd. 3.Enrollment options transportation. For transportation of pupils attending 
28.2 	postsecondary institutions under Minnesota Statutes, section 124D.09, or for transportation 
28.3 	of pupils attending nonresident districts under Minnesota Statutes, section 124D.03:

28.4		$
	48,000
	.....
	2010
	
28.5		$
	52,000
	.....
	2011
	
28.6 		Subd. 4.Abatement revenue. For abatement aid under Minnesota Statutes, section 
28.7 	127A.49:

28.8		$
	1,175,000
	.....
	2010
	
28.9		$
	1,034,000
	.....
	2011
	
28.10 	The 2010 appropriation includes $140,000 for 2009 and $1,035,000 for 2010.
28.11 	The 2011 appropriation includes $113,000 for 2010 and $919,000 for 2011.
28.12 		Subd. 5.Consolidation transition. For districts consolidating under Minnesota 
28.13 	Statutes, section 123A.485:

28.14		$
	854,000
	.....
	2010
	
28.15		$
	927,000
	.....
	2011
	
28.16 	The 2010 appropriation includes $0 for 2009 and $854,000 for 2010.
28.17 	The 2011 appropriation includes $94,000 for 2010 and $833,000 for 2011.
28.18 		Subd. 6.Nonpublic pupil education aid. For nonpublic pupil education aid under 
28.19 	Minnesota Statutes, sections 123B.40 to 123B.43 and 123B.87:

28.20		$
	16,599,000
	.....
	2010
	
28.21		$
	17,151,000
	.....
	2011
	
28.22 	The 2010 appropriation includes $1,647,000 for 2009 and $14,952,000 for 2010.
28.23 	The 2011 appropriation includes $1,660,000 for 2010 and $15,491,000 for 2011.
28.24 		Subd. 7.Nonpublic pupil transportation. For nonpublic pupil transportation aid 
28.25 	under Minnesota Statutes, section 123B.92, subdivision 9:

28.26		$
	22,159,000
	.....
	2010
	
28.27		$
	22,712,000
	.....
	2011
	
28.28 	The 2010 appropriation includes $2,077,000 for 2009 and $20,082,000 for 2010.
28.29 	The 2011 appropriation includes $2,231,000 for 2010 and $20,481,000 for 2011.
28.30 		Subd. 8.One-room schoolhouse. For a grant to Independent School District No. 
28.31 	690, Warroad, to operate the Angle Inlet School:

28.32		$
	65,000
	.....
	2010
	
28.33		$
	65,000
	.....
	2011
	
29.1 		Subd. 9.Independent School District No. 239, Rushford-Peterson. For school 
29.2 	district flood enrollment impact aid as a result of the floods of August 2007:

29.3		$
	158,000
	.....
	2010
	
29.4 	The base appropriation for later fiscal years is $0.
29.5 		Subd. 10.Lancaster. For a grant to Independent School District No. 356, Lancaster, 
29.6 	to replace the loss of sparsity revenue:

29.7		$
	100,000
	.....
	2010
	
29.8		$
	100,000
	.....
	2011
	
29.9 	The base appropriation for later fiscal years is $0.
29.10 		Subd. 11.Compensatory revenue pilot project. For grants for participation in the 
29.11 	compensatory revenue pilot program under Laws 2005, First Special Session chapter 5, 
29.12 	article 1, section 50:

29.13		$
	2,175,000
	.....
	2010
	
29.14		$
	2,175,000
	.....
	2011
	
29.15 	Of this amount, $1,500,000 in each year is for a grant to Independent School District 
29.16 	No. 11, Anoka-Hennepin; $210,000 in each year is for a grant to Independent School 
29.17 	District No. 279, Osseo; $160,000 in each year is for a grant to Independent School 
29.18 	District No. 281, Robbinsdale; $75,000 in each year is for a grant to Independent School 
29.19 	District No. 286, Brooklyn Center; $165,000 in each year is for a grant to Independent 
29.20 	School District No. 535, Rochester; and $65,000 in each year is for a grant to Independent 
29.21 	School District No. 833, South Washington.
29.22 	If a grant to a specific school district is not awarded, the commissioner may increase 
29.23 	the aid amounts to any of the remaining participating school districts.
29.24 	This appropriation is part of the base budget for subsequent fiscal years.
29.25 		Subd. 12.Consolidated levy adjustment. For the consolidated levy adjustment:

29.26		$
	19,816,000
	.....
	2011
	
29.27 	The 2011 appropriation includes $0 for 2010 and $19,816,000 for 2011.

29.28 	Sec. 51. APPROPRIATIONS; FEDERAL.
 29.29 		Subdivision 1.Department of Education. The sums indicated in this section are 
29.30 	appropriated from the fiscal stabilization account in the federal fund for the fiscal years 
29.31 	designated.
30.1 		Subd. 2.Restoring state support for general education. For general education 
30.2 	aid to reduce the statewide average daily membership aid adjustment under Minnesota 
30.3 	Statutes, section 126C.21, subdivision 6:

30.4		$
	519,617,000
	.....
	2010
	
30.5 	The base for fiscal year 2012 and later is $0.

30.6 	Sec. 52.  REPEALER.
 30.7 	(a) Minnesota Statutes 2008, section 126C.10, subdivisions 13a, 13b, 29, 30, 32, 33, 
30.8 	34, 35, and 36, are repealed for revenue for fiscal year 2011.
30.9 	(b) Laws 2008, chapter 363, article 2, section 48, is repealed.

30.10 	ARTICLE 2
30.11 	EDUCATION EXCELLENCE

30.12 	Section 1. Minnesota Statutes 2008, section 120A.22, subdivision 11, is amended to 
30.13 	read:
30.14 		Subd. 11.Assessment of performance. (a) Each year the performance of 
30.15 	every child who is not enrolled in a public school must be assessed using a nationally 
30.16 	norm-referenced standardized achievement examination. The superintendent of the 
30.17 	district in which the child receives instruction and the person in charge of the child's 
30.18 	instruction must agree about the specific examination to be used and the administration 
30.19 	and location of the examination or a nationally recognized college entrance exam.
30.20 	(b) To the extent the examination in paragraph (a) does not provide assessment in 
30.21 	all of the subject areas in subdivision 9, the parent must assess the child's performance 
30.22 	in the applicable subject area. This requirement applies only to a parent who provides 
30.23 	instruction and does not meet the requirements of subdivision 10, clause (1), (2), or (3).
30.24 	(c) If the results of the assessments in paragraphs (a) and (b) indicate that the 
30.25 	child's performance on the total battery score is at or below the 30th percentile or one 
30.26 	grade level below the performance level for children of the same age, the parent must 
30.27 	obtain additional evaluation of the child's abilities and performance for the purpose of 
30.28 	determining whether the child has learning problems.
30.29 	(d)(b) A child receiving instruction from a nonpublic school, person, or institution 
30.30 	that is accredited by an accrediting agency, recognized according to section 123B.445, or 
30.31 	recognized by the commissioner, is exempt from the requirements of this subdivision.

30.32 	Sec. 2. Minnesota Statutes 2008, section 120A.22, subdivision 12, is amended to read:
31.1 		Subd. 12.Legitimate exemptions. A parent, guardian, or other person having 
31.2 	control of a child may apply to a school district to have the child excused from attendance 
31.3 	for the whole or any part of the time school is in session during any school year. 
31.4 	Application may be made to any member of the board, a truant officer, a principal, or the 
31.5 	superintendent. The school district may state in its school attendance policy that it may ask 
31.6 	the student's parent or legal guardian to verify in writing the reason for the child's absence 
31.7 	from school. A note from a physician or a licensed mental health professional stating that 
31.8 	the child cannot attend school is a valid excuse. The board of the district in which the 
31.9 	child resides may approve the application upon the following being demonstrated to the 
31.10 	satisfaction of that board:
31.11 	(1) that the child's bodily physical or mental condition health is such as to prevent 
31.12 	attendance at school or application to study for the period required, which includes:
31.13 	(i) child illness, medical, dental, orthodontic, or counseling appointments;
31.14 	(ii) family emergencies;
31.15 	(iii) the death or serious illness or funeral of an immediate family member;
31.16 	(iv) active duty in any military branch of the United States; or
31.17 	(v) the child has a condition that requires ongoing treatment for a mental health 
31.18 	diagnosis; or
31.19 	(vi) other exemptions included in the district's school attendance policy;
31.20 	(2) that the child has already completed state and district standards required for 
31.21 	graduation from high school; or
31.22 	(3) that it is the wish of the parent, guardian, or other person having control of the 
31.23 	child, that the child attend for a period or periods not exceeding in the aggregate three 
31.24 	hours in any week, a school for religious instruction conducted and maintained by some 
31.25 	church, or association of churches, or any Sunday school association incorporated under 
31.26 	the laws of this state, or any auxiliary thereof. This school for religious instruction must 
31.27 	be conducted and maintained in a place other than a public school building, and it must 
31.28 	not, in whole or in part, be conducted and maintained at public expense. However, a child 
31.29 	may be absent from school on such days as the child attends upon instruction according to 
31.30 	the ordinances of some church.

31.31 	Sec. 3. Minnesota Statutes 2008, section 120A.24, is amended to read:
31.32 	120A.24 REPORTING.
31.33 		Subdivision 1.Reports to superintendent. The person in charge of providing 
31.34 	instruction to a child must submit the following information to the superintendent of the 
31.35 	district in which the child resides the name, birth date, and address of the child; the name 
32.1 	of each instructor; and evidence of compliance with one of the requirements specified in 
32.2 	section 120A.22, subdivision 10:
32.3 	(1) by October 1 of each the first school year, the name, birth date, and address 
32.4 	of each child receiving instruction the child receives instruction after reaching the age 
32.5 	of seven;
32.6 	(2) the name of each instructor and evidence of compliance with one of the 
32.7 	requirements specified in section 120A.22, subdivision 10;
32.8 	(3) an annual instructional calendar; and
32.9 	(4) for each child instructed by a parent who meets only the requirement of section 
32.10 	120A.22, subdivision 10, clause (6), a quarterly report card on the achievement of the 
32.11 	child in each subject area required in section 120A.22, subdivision 9
32.12 	(2) within 15 days of when a parent withdraws a child from public school after 
32.13 	age seven to homeschool;
32.14 	(3) within 15 days of moving out of a district; and
32.15 	(4) by October 1 after a new resident district is established.
32.16 		Subd. 2.Availability of documentation. (a) The person in charge of providing 
32.17 	instruction to a child must make available maintain documentation indicating that the 
32.18 	subjects required in section 120A.22, subdivision 9, are being taught and proof that the 
32.19 	tests under section 120A.22, subdivision 11, have been administered. This documentation 
32.20 	must include class schedules, copies of materials used for instruction, and descriptions of 
32.21 	methods used to assess student achievement.
32.22 	(b) The parent of a child who enrolls full-time in public school after having been 
32.23 	enrolled in a home school under section 120A.22, subdivision 6, must provide the 
32.24 	enrolling public school or school district with the child's scores on any tests administered 
32.25 	to the child under section 120A.22, subdivision 11, and other education-related documents 
32.26 	the enrolling school or district requires to determine where the child is placed in school 
32.27 	and what course requirements apply. This paragraph does not apply to a shared time 
32.28 	student who does not seek a public school diploma.
32.29 		Subd. 3.Exemptions. A nonpublic school, person, or other institution that is 
32.30 	accredited by an accrediting agency, recognized according to section 123B.445, or 
32.31 	recognized by the commissioner, is exempt from the requirements in subdivisions 1 and
32.32 	subdivision 2, except for the requirement in subdivision 1, clause (1).  
32.33 		Subd. 4.Reports to the state. A superintendent must make an annual report to the 
32.34 	commissioner of education by December 1 of the total number of nonpublic children 
32.35 	reported as residing in the district. The report must include the following information:
33.1 	(1) the number of children residing in the district attending nonpublic schools or 
33.2 	receiving instruction from persons or institutions other than a public school;
33.3 	(2) the number of children in clause (1) who are in compliance with section 120A.22
33.4 	and this section; and  
33.5 	(3) the number of children in clause (1) who the superintendent has determined are 
33.6 	not in compliance with section 120A.22 and this section.  
33.7 		Subd. 5.Obligations. Nothing in this section alleviates the obligations under 
33.8 	section 120A.22.

33.9 	Sec. 4. Minnesota Statutes 2008, section 120B.02, is amended to read:
33.10 	120B.02 EDUCATIONAL EXPECTATIONS FOR MINNESOTA'S 
33.11 	STUDENTS.
33.12 	(a) The legislature is committed to establishing rigorous academic standards for 
33.13 	Minnesota's public school students. To that end, the commissioner shall adopt in rule 
33.14 	statewide academic standards. The commissioner shall not prescribe in rule or otherwise 
33.15 	the delivery system, classroom assessments, or form of instruction that school sites must 
33.16 	use. For purposes of this chapter, a school site is a separate facility, or a separate program 
33.17 	within a facility that a local school board recognizes as a school site for funding purposes.
33.18 	(b) All commissioner actions regarding the rule must be premised on the following:
33.19 	(1) the rule is intended to raise academic expectations for students, teachers, and 
33.20 	schools;
33.21 	(2) any state action regarding the rule must evidence consideration of school district 
33.22 	autonomy; and
33.23 	(3) the Department of Education, with the assistance of school districts, must make 
33.24 	available information about all state initiatives related to the rule to students and parents, 
33.25 	teachers, and the general public in a timely format that is appropriate, comprehensive, and 
33.26 	readily understandable.
33.27 	(c) When fully implemented, the requirements for high school graduation in 
33.28 	Minnesota must require students to satisfactorily complete, as determined by the school 
33.29 	district, the course credit requirements under section 120B.024 and: successfully pass 
33.30 	graduation examinations as required under section 120B.30.
33.31 	(1) for students enrolled in grade 8 before the 2005-2006 school year, to pass the 
33.32 	basic skills test requirements; and
33.33 	(2) for students enrolled in grade 8 in the 2005-2006 school year and later, to pass 
33.34 	the Minnesota Comprehensive Assessments Second Edition (MCA-IIs).
34.1 	(d) The commissioner shall periodically review and report on the state's assessment 
34.2 	process.
34.3 	(e) School districts are not required to adopt specific provisions of the federal 
34.4 	School-to-Work programs.

34.5 	Sec. 5. Minnesota Statutes 2008, section 120B.021, subdivision 1, is amended to read:
34.6 		Subdivision 1.Required academic standards. (a) The following subject areas 
34.7 	are required for statewide accountability:
34.8 	(1) language arts;
34.9 	(2) mathematics;
34.10 	(3) science;
34.11 	(4) social studies, including history, geography, economics, and government and 
34.12 	citizenship;
34.13 	(5) physical education;
34.14 	(6) health and physical education, for which locally developed academic standards 
34.15 	apply; and
34.16 	(6) (7) the arts, for which statewide or locally developed academic standards apply, 
34.17 	as determined by the school district. Public elementary and middle schools must offer at 
34.18 	least three and require at least two of the following four arts areas: dance; music; theater; 
34.19 	and visual arts. Public high schools must offer at least three and require at least one of the 
34.20 	following five arts areas: media arts; dance; music; theater; and visual arts.
34.21 	(b) To satisfy this subdivision and the one-half credit physical education requirement 
34.22 	under section 120B.024, paragraph (a), clause (6), the state physical education standard 
34.23 	under paragraph (a) selected by a school district must be consistent with either the 
34.24 	physical education benchmarks developed by the quality teaching network or the National 
34.25 	Physical Education Standards developed by the National Association for Sport and 
34.26 	Physical Education. To satisfy federal reporting requirements for continued funding under 
34.27 	Title VII of the Physical Education for Progress Act, a school district must notify the 
34.28 	department, if applicable, of its intent to comply with this subdivision. School districts 
34.29 	and charter schools also must use either the physical education benchmarks or the 
34.30 	National Physical Education Standards under this paragraph to comply with paragraph 
34.31 	(a), clause (5), in providing physical education instruction and programs to students in 
34.32 	kindergarten through grade 12.
34.33 	(c) The commissioner must submit proposed standards in science and social studies 
34.34 	to the legislature by February 1, 2004.
35.1 	(d) For purposes of applicable federal law, the academic standards for language arts, 
35.2 	mathematics, and science apply to all public school students, except the very few students 
35.3 	with extreme cognitive or physical impairments for whom an individualized education 
35.4 	plan team has determined that the required academic standards are inappropriate. An 
35.5 	individualized education plan team that makes this determination must establish alternative 
35.6 	standards with appropriate alternate achievement standards based on these academic 
35.7 	standards for students with individualized education plans described under federal law.
35.8 	(e) A school district, no later than the 2007-2008 school year, must adopt graduation 
35.9 	requirements that meet or exceed state graduation requirements established in law or 
35.10 	rule. A school district that incorporates these state graduation requirements before the 
35.11 	2007-2008 school year must provide students who enter the 9th grade in or before 
35.12 	the 2003-2004 school year the opportunity to earn a diploma based on existing locally 
35.13 	established graduation requirements in effect when the students entered the 9th grade. 
35.14 	District efforts to develop, implement, or improve instruction or curriculum as a result 
35.15 	of the provisions of this section must be consistent with sections 120B.10, 120B.11, 
35.16 	and 120B.20. 
35.17 	(f) The commissioner must include the contributions of Minnesota American Indian 
35.18 	tribes and communities as they relate to the academic standards during the review and 
35.19 	revision of the required academic standards.

35.20 	EFFECTIVE DATE. This section is effective the day following final enactment 
35.21 	and applies in the 2009-2010 school year and later, and is a requirement for graduation for 
35.22 	students entering the 9th grade in the 2009-2010 school year and later.

35.23 	Sec. 6. Minnesota Statutes 2008, section 120B.023, subdivision 2, is amended to read:
35.24 		Subd. 2.Revisions and reviews required. (a) The commissioner of education must 
35.25 	revise and appropriately embed technology and information literacy standards consistent 
35.26 	with recommendations from school media specialists into the state's academic standards 
35.27 	and graduation requirements and implement a review cycle for state academic standards 
35.28 	and related benchmarks, consistent with this subdivision. During each review cycle, the 
35.29 	commissioner also must examine the alignment of each required academic standard and 
35.30 	related benchmark with the knowledge and skills students need for college readiness and 
35.31 	advanced work in the particular subject area.
35.32 	(b) The commissioner in the 2006-2007 school year must revise and align the state's 
35.33 	academic standards and high school graduation requirements in mathematics to require 
35.34 	that students satisfactorily complete the revised mathematics standards, beginning in the 
35.35 	2010-2011 school year. Under the revised standards:
36.1 	(1) students must satisfactorily complete an algebra I credit by the end of eighth 
36.2 	grade; and
36.3 	(2) students scheduled to graduate in the 2014-2015 school year or later must 
36.4 	satisfactorily complete an algebra II credit or its equivalent.
36.5 	The commissioner also must ensure that the statewide mathematics assessments 
36.6 	administered to students in grades 3 through 8 and 11 beginning in the 2010-2011 
36.7 	school year are aligned with the state academic standards in mathematics. The statewide 
36.8 	11th grade mathematics test administered to students under clause (2) beginning in 
36.9 	the 2013-2014 school year must include algebra II test items that are aligned with 
36.10 	corresponding state academic standards in mathematics. The commissioner must 
36.11 	implement a review of the academic standards and related benchmarks in mathematics 
36.12 	beginning in the 2015-2016 school year.
36.13 	(c) The commissioner in the 2007-2008 school year must revise and align the state's 
36.14 	academic standards and high school graduation requirements in the arts to require that 
36.15 	students satisfactorily complete the revised arts standards beginning in the 2010-2011 
36.16 	school year. The commissioner must implement a review of the academic standards and 
36.17 	related benchmarks in arts beginning in the 2016-2017 school year.
36.18 	(d) The commissioner in the 2008-2009 school year must revise and align the state's 
36.19 	academic standards and high school graduation requirements in science to require that 
36.20 	students satisfactorily complete the revised science standards, beginning in the 2011-2012 
36.21 	school year. Under the revised standards, students scheduled to graduate in the 2014-2015 
36.22 	school year or later must satisfactorily complete a chemistry or physics credit. The 
36.23 	commissioner must implement a review of the academic standards and related benchmarks 
36.24 	in science beginning in the 2017-2018 school year.
36.25 	(e) The commissioner in the 2009-2010 school year must revise and align the state's 
36.26 	academic standards and high school graduation requirements in language arts to require 
36.27 	that students satisfactorily complete the revised language arts standards beginning in the 
36.28 	2012-2013 school year. The commissioner must implement a review of the academic 
36.29 	standards and related benchmarks in language arts beginning in the 2018-2019 school year.
36.30 	(f) The commissioner in the 2010-2011 school year must revise and align the state's 
36.31 	academic standards and high school graduation requirements in social studies to require 
36.32 	that students satisfactorily complete the revised social studies standards beginning in the 
36.33 	2013-2014 school year. The commissioner must implement a review of the academic 
36.34 	standards and related benchmarks in social studies beginning in the 2019-2020 school year.
36.35 	(g) School districts and charter schools must revise and align local academic 
36.36 	standards and high school graduation requirements in health, physical education, world 
37.1 	languages, and career and technical education to require students to complete the revised 
37.2 	standards beginning in a school year determined by the school district or charter school. 
37.3 	School districts and charter schools must formally establish a periodic review cycle for 
37.4 	the academic standards and related benchmarks in health, physical education, world 
37.5 	languages, and career and technical education.

37.6 	EFFECTIVE DATE. Paragraph (g) is effective the day following final enactment 
37.7 	and applies in the 2009-2010 school year and later.

37.8 	Sec. 7. Minnesota Statutes 2008, section 120B.024, is amended to read:
37.9 	120B.024 GRADUATION REQUIREMENTS; COURSE CREDITS.
37.10 	(a) Students beginning 9th grade in the 2004-2005 school year and later must 
37.11 	successfully complete the following high school level course credits for graduation:
37.12 	(1) four credits of language arts;
37.13 	(2) three credits of mathematics, encompassing at least algebra, geometry, statistics, 
37.14 	and probability sufficient to satisfy the academic standard;
37.15 	(3) three credits of science, including at least one credit in biology;
37.16 	(4) three and one-half credits of social studies, encompassing at least United 
37.17 	States history, geography, government and citizenship, world history, and economics or 
37.18 	three credits of social studies encompassing at least United States history, geography, 
37.19 	government and citizenship, and world history, and one-half credit of economics taught in 
37.20 	a school's social studies, agriculture education, or business department;
37.21 	(5) one credit in the arts; and
37.22 	(6) one-half credit of physical education on a pass or fail basis; and
37.23 	(7) a minimum of seven6-1/2 elective course credits.
37.24 	A course credit is equivalent to a student successfully completing an academic 
37.25 	year of study or a student mastering the applicable subject matter of the state academic 
37.26 	standards or local academic standards where state standards do not apply, as determined 
37.27 	by the local school district.
37.28 	(b) An agriculture science course may fulfill a science credit requirement in addition 
37.29 	to the specified science credits in biology and chemistry or physics under paragraph (a), 
37.30 	clause (3).
37.31 	(c) A career and technical education course may fulfill a science, mathematics, or 
37.32 	arts credit requirement in addition to the specified science, mathematics, or arts credits 
37.33 	under paragraph (a), clause (2), (3), or (5).
38.1 	(d) The school board, or school board designee, shall grant a waiver from the 
38.2 	physical education requirement if the student is participating in a physical activity outside 
38.3 	of the regular physical education course offering.

38.4 	EFFECTIVE DATE. This section is effective August 1, 2012, and applies to 
38.5 	students entering grade 9 in the 2012-2013 school year and later; except paragraph (a), 
38.6 	clauses (6) and (7), are effective the day following final enactment and apply to students 
38.7 	entering 9th grade in the 2009-2010 school year and later. 

38.8 	Sec. 8. [120B.17] MINNESOTA VIRTUAL EDUCATION PROGRAM.
38.9 		Subdivision 1.Program. A state of Minnesota virtual education program is 
38.10 	established for teachers and students to improve and enhance teacher instruction and 
38.11 	student learning through integration of technology and online learning. The commissioner 
38.12 	of education shall establish the program and develop a selection of online courses for 
38.13 	students. The online student courses shall be established for grades 6 through 12.
38.14 		Subd. 2.Scope and requirements. (a) The student courses shall be developed or 
38.15 	approved by department staff, content experts, licensed Minnesota teachers, licensed 
38.16 	administrators, and business representatives. The courses must be aligned to the Minnesota 
38.17 	academic standards established in Minnesota Rules, chapter 3501. The commissioner of 
38.18 	education, in working with qualified individuals, must establish at least ten student courses 
38.19 	that will be available to students and teachers no later than the 2010-2011 school year. The 
38.20 	commissioner must give priority in the development of courses to science, technology, 
38.21 	engineering, mathematics, and advanced courses. The courses available to students must 
38.22 	be monitored and delivered by licensed Minnesota teachers under section 122A.16.
38.23 	(b) School districts and charter schools participating in the program must:
38.24 	(1) submit a letter of intent to the commissioner of education;
38.25 	(2) allow students to participate in the program;
38.26 	(3) train teachers to monitor and deliver courses;
38.27 	(4) allow students to receive graduation credit, if appropriate, for successful 
38.28 	completion of the courses;
38.29 	(5) issue grades to students enrolled in the online courses; and
38.30 	(6) report progress to the department on student participation and completion rates.
38.31 		Subd. 3.Report. The commissioner of education must submit a report to the chairs 
38.32 	of the house of representatives and senate education committees by October 1, 2011, 
38.33 	assessing the progress and development of the program.

38.34 	Sec. 9. [120B.191] WORLD LANGUAGE PROFICIENCY CERTIFICATES.
39.1 	(a) Any Minnesota public, charter, or nonpublic school may award Minnesota 
39.2 	World Language Proficiency Certificates or Minnesota World Language Proficiency High 
39.3 	Achievement Certificates.
39.4 	(b) The Minnesota World Language Proficiency Certificate recognizes students who 
39.5 	demonstrate listening, speaking, reading, and writing language skills at the American 
39.6 	Council on the Teaching of Foreign Languages' Intermediate-Low level on a valid and 
39.7 	reliable assessment tool. For languages listed as Category 3 by the United States Foreign 
39.8 	Service Institute or Category 4 by the United States Defense Language Institute, the 
39.9 	standard is Intermediate-Low for listening and speaking and Novice-High for reading 
39.10 	and writing.
39.11 	(c) The Minnesota World Language Proficiency High Achievement Certificate 
39.12 	recognizes students who demonstrate listening, speaking, reading, and writing language 
39.13 	skills at the American Council on the Teaching of Foreign Languages' Pre-Advanced level 
39.14 	for K-12 learners on a valid and reliable assessment tool. For languages listed as Category 
39.15 	3 by the United States Foreign Service Institute or Category 4 by the United States 
39.16 	Defense Language Institute, the standard is Pre-Advanced for listening and speaking and 
39.17 	Intermediate-Mid for reading and writing.

39.18 	Sec. 10. [120B.236] CARDIOPULMONARY RESUSCITATION AND 
39.19 	AUTOMATIC EXTERNAL DEFIBRILLATOR INSTRUCTION.
39.20 	School districts are encouraged to include cardiopulmonary resuscitation and 
39.21 	automatic external defibrillator instruction as part of their curriculum. Schools offering 
39.22 	cardiopulmonary resuscitation or automatic external defibrillator instruction must use 
39.23 	cardiopulmonary resuscitation or automatic external defibrillator training that has been 
39.24 	developed:
39.25 	(1) by the American Heart Association or the American Red Cross and incorporate 
39.26 	psychomotor skills to support the instruction; or
39.27 	(2) using nationally recognized, evidence-based guidelines for cardiopulmonary 
39.28 	resuscitation and incorporates psychomotor skills to support the instruction.

39.29 	Sec. 11. [120B.299] DEFINITIONS.
39.30 		Subdivision 1.Definitions. The definitions in this section apply to this chapter.
39.31 		Subd. 2.Growth. "Growth" compares the difference in a student's achievement 
39.32 	score at two or more distinct points in time. 
40.1 		Subd. 3.Value-added. "Value-added" is the amount of achievement a student 
40.2 	demonstrates above an established baseline. The difference between the student's score 
40.3 	and the baseline defines value-added.
40.4 		Subd. 4.Growth-based value-added. "Growth-based value-added" is based on a 
40.5 	student's growth score. In a growth-based value-added system, the student's first test is 
40.6 	the baseline, and the difference between the student's first and next test scores within a 
40.7 	defined period is the measure of value-added.
40.8 		Subd. 5.Adequate yearly progress. A school or district makes "adequate yearly 
40.9 	progress" if, for every student subgroup under the federal 2001 No Child Left Behind Act 
40.10 	in the school or district, its proficiency index, based on statewide assessment scores, 
40.11 	meets or exceeds federal expectations. To make adequate yearly progress, the school or 
40.12 	district also must satisfy applicable federal requirements related to student attendance, 
40.13 	graduation, and test participation rates.
40.14 		Subd. 6.State growth target. (a) "State growth target" is the average year-two 
40.15 	assessment scores for students with similar year-one assessment scores.
40.16 	(b) Beginning in the 2008-2009 school year, the state growth target is benchmarked 
40.17 	to 2006-2007 and 2007-2008 school year data until the assessment scale changes.
40.18 	(c) Each time before the assessment scale changes, a recognized Minnesota 
40.19 	assessment group composed of assessment and evaluation directors and staff and 
40.20 	researchers must recommend a new state growth target that the commissioner must 
40.21 	consider when revising standards under section 120B.023, subdivision 2. 
40.22 		Subd. 7.Low growth. "Low growth" is an assessment score one-half standard 
40.23 	deviation below the state growth target.
40.24 		Subd. 8.Medium growth. "Medium growth" is an assessment score within one-half 
40.25 	standard deviation above or below the state growth target.
40.26 		Subd. 9.High growth. "High growth" is an assessment score one-half standard 
40.27 	deviation or more above the state growth target.
40.28 		Subd. 10.Proficiency. "Proficiency" for purposes of reporting growth on school 
40.29 	performance report cards under section 120B.36, subdivision 1, means those students 
40.30 	who, in the previous school year, scored at or above "meets standards" on the statewide 
40.31 	assessments under section 120B.30.  Each year, school performance report cards must 
40.32 	separately display: (1) the numbers and percentages of students who achieved low growth, 
40.33 	medium growth, and high growth and achieved proficiency in the previous school year; 
40.34 	and (2) the numbers and percentages of students who achieved low growth, medium 
40.35 	growth, and high growth and did not achieve proficiency in the previous school year.
41.1 		Subd. 11.Growth and progress toward proficiency. The categories of low 
41.2 	growth, medium growth and high growth shall be used to indicate both growth, and 
41.3 	progress toward grade-level proficiency that is consistent with subdivision 10.

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

41.5 	Sec. 12. Minnesota Statutes 2008, section 120B.30, subdivision 1, is amended to read:
41.6 		Subdivision 1.Statewide testing. (a) The commissioner, with advice from experts 
41.7 	with appropriate technical qualifications and experience and stakeholders, consistent with 
41.8 	subdivision 1a, shall include in the comprehensive assessment system, for each grade 
41.9 	level to be tested, state-constructed tests developed from and aligned with the state's 
41.10 	required academic standards under section 120B.021 and administered annually to all 
41.11 	students in grades 3 through 8 and at the high school level in mathematics and reading. A 
41.12 	state-developed test in a subject other than writing, developed after the 2002-2003 school 
41.13 	year, must include both machine-scoreable and constructed response questions. The 
41.14 	commissioner shall establish one or more months during which schools shall administer 
41.15 	the tests to students each school year. 
41.16 	(b) The state assessment system must be aligned to the most recent revision of 
41.17 	academic standards as described in section 120B.023 in the following manner:
41.18 	(1) mathematics;
41.19 	(i) grades 3 through 8 beginning in the 2010-2011 school year; and
41.20 	(ii) high school level beginning in the 2013-2014 school year;
41.21 	(2) science; grades 5 and 8 and at the high school level beginning in the 2011-2012 
41.22 	school year; and
41.23 	(3) language arts and reading; grades 3 through 8 and high school level beginning in 
41.24 	the 2012-2013 school year.
41.25 	(c) For students enrolled in grade 8 before the 2005-2006 school year, only 
41.26 	Minnesota basic skills tests in reading, mathematics, and writing shall fulfill students' 
41.27 	basic skills testing requirements for a passing state notation. The passing scores of basic 
41.28 	skills tests in reading and mathematics are the equivalent of 75 percent correct for students 
41.29 	entering grade 9 in 1997 and thereafter, as based on the first uniform test administration 
41.30 	of February 1998. Students who have not successfully passed the basic skills test by the 
41.31 	end of the 2011-2012 school year must pass the graduation assessment requirements 
41.32 	for Minnesota students given at that time.
41.33 	(b) (d) For students enrolled in grade 8 in the 2005-2006 school year and later, only 
41.34 	the following options shall fulfill students' state graduation test requirements:
41.35 	(1) for reading and mathematics:
42.1 	(i) obtaining an achievement level equivalent to or greater than proficient as 
42.2 	determined through a standard setting process on the Minnesota comprehensive 
42.3 	assessments in grade 10 for reading and grade 11 for mathematics or achieving a passing 
42.4 	score as determined through a standard setting process on the graduation-required 
42.5 	assessment for diploma in grade 10 for reading and grade 11 for mathematics or 
42.6 	subsequent retests;
42.7 	(ii) achieving a passing score as determined through a standard setting process on the 
42.8 	state-identified language proficiency test in reading and the mathematics test for English 
42.9 	language learners or the graduation-required assessment for diploma equivalent of those 
42.10 	assessments for students designated as English language learners;
42.11 	(iii) achieving an individual passing score on the graduation-required assessment 
42.12 	for diploma as determined by appropriate state guidelines for students with an individual 
42.13 	education plan or 504 plan;
42.14 	(iv) obtaining achievement level equivalent to or greater than proficient as 
42.15 	determined through a standard setting process on the state-identified alternate assessment 
42.16 	or assessments in grade 10 for reading and grade 11 for mathematics for students with 
42.17 	an individual education plan; or
42.18 	(v) achieving an individual passing score on the state-identified alternate assessment 
42.19 	or assessments as determined by appropriate state guidelines for students with an 
42.20 	individual education plan; and
42.21 	(2) for writing:
42.22 	(i) achieving a passing score on the graduation-required assessment for diploma;
42.23 	(ii) achieving a passing score as determined through a standard setting process on 
42.24 	the state-identified language proficiency test in writing for students designated as English 
42.25 	language learners;
42.26 	(iii) achieving an individual passing score on the graduation-required assessment 
42.27 	for diploma as determined by appropriate state guidelines for students with an individual 
42.28 	education plan or 504 plan; or
42.29 	(iv) achieving an individual passing score on the state-identified alternate assessment 
42.30 	or assessments as determined by appropriate state guidelines for students with an 
42.31 	individual education plan.
42.32 	(c) (e) A student enrolled in grade 8 in the 2005-2006 school year through the 
42.33 	2009-2010 school year who does not pass the state graduation-required assessment for 
42.34 	diploma in mathematics, shall receive a passing state notation if they:
42.35 	(1) complete with a passing score or grade all state and local coursework and credits 
42.36 	required for graduation by the school board granting the student their diploma;
43.1 	(2) participate in the district-prescribed academic remediation in mathematics; and 
43.2 	(3) fully participate in at least two retest attempts in mathematics after the initial 
43.3 	spring administration of the mathematics graduation-required assessment for diploma.
43.4 	(f) For students enrolled in grade 8 in the 2010-2011 school year and later, only the 
43.5 	following options shall fulfill students' state graduation test requirements:
43.6 	(1) for reading:
43.7 	(i) obtaining an achievement level equivalent to or greater than proficient as 
43.8 	determined through a standard setting process on the Minnesota comprehensive 
43.9 	assessments in grade 10 for reading or achieving a passing score as determined through a 
43.10 	standard setting process on the graduation-required assessment for diploma in grade 10 
43.11 	for reading or subsequent retests;
43.12 	(ii) achieving a passing score as determined through a standard setting process on the 
43.13 	state-identified language proficiency test in reading for English language learners or the 
43.14 	graduation-required assessment for diploma equivalent of those assessments for students 
43.15 	designated as English language learners;
43.16 	(iii) achieving an individual passing score on the graduation-required assessment 
43.17 	for diploma as determined by appropriate state guidelines for students with an individual 
43.18 	education plan or 504 plan;
43.19 	(iv) obtaining achievement level equivalent to or greater than proficient as 
43.20 	determined through a standard setting process on the state-identified alternate assessment 
43.21 	or assessments in grade 10 for reading for students with an individual education plan; or
43.22 	(v) achieving an individual passing score on the state-identified alternate assessment 
43.23 	or assessments as determined by appropriate state guidelines for students with an 
43.24 	individual education plan; and
43.25 	(2) for writing:
43.26 	(i) achieving a passing score on the graduation-required assessment for diploma;
43.27 	(ii) achieving a passing score as determined through a standard setting process on 
43.28 	the state-identified language proficiency test in writing for students designated as English 
43.29 	language learners;
43.30 	(iii) achieving an individual passing score on the graduation-required assessment 
43.31 	for diploma as determined by appropriate state guidelines for students with an individual 
43.32 	education plan or 504 plan; or
43.33 	(iv) achieving an individual passing score on the state-identified alternate assessment 
43.34 	or assessments as determined by appropriate state guidelines for students with an 
43.35 	individual education plan; and
43.36 	(3) for mathematics:
44.1 	(i) obtaining a passing score through a standard setting process on the high school 
44.2 	mathematics assessment or subsequent retests;
44.3 	(ii) achieving a passing score as determined through a standard setting process on 
44.4 	the high school mathematics assessment test equivalent of those assessments for students 
44.5 	designated as English language learners;
44.6 	(iii) achieving an individual passing score on the high school mathematics 
44.7 	assessment as determined by appropriate state guidelines for students with an individual 
44.8 	education plan or 504 plan;
44.9 	(iv) obtaining a passing score as determined through a standard setting process on 
44.10 	the mathematics alternative assessment for students with an individual education plan; or
44.11 	(v) achieving an individual passing score on the mathematics alternate assessment or 
44.12 	assessments as determined by appropriate state guidelines for students with an individual 
44.13 	education plan;
44.14 	(g) The 3rd through 8th grade and high school level test results shall be available 
44.15 	to districts for diagnostic purposes affecting student learning and district instruction and 
44.16 	curriculum, and for establishing educational accountability. The commissioner must 
44.17 	disseminate to the public the test results upon within two weeks of receiving those results.
44.18 	Individual high school mathematics assessment results must be reported to the 
44.19 	student, parent or guardian, school, and district within two weeks of the student's 
44.20 	completion on the test. The results must inform the student of college readiness.
44.21 	(d) (h) State tests must be constructed and aligned with state academic standards. 
44.22 	The testing process and the order of administration shall be determined by the 
44.23 	commissioner. The statewide results shall be aggregated at the site and district level, 
44.24 	consistent with subdivision 1a.
44.25 	(e) (i) In addition to the testing and reporting requirements under this section, the 
44.26 	commissioner shall include the following components in the statewide public reporting 
44.27 	system:
44.28 	(1) uniform statewide testing of all students in grades 3 through 8 and at the high 
44.29 	school level that provides appropriate, technically sound accommodations, or alternate 
44.30 	assessments, or exemptions consistent with applicable federal law, only with parent or 
44.31 	guardian approval, for those very few students for whom the student's individual education 
44.32 	plan team under sections 125A.05 and 125A.06 determines that the general statewide test 
44.33 	is inappropriate for a student, or for a limited English proficiency student under section 
44.34 	124D.59, subdivision 2;
45.1 	(2) educational indicators that can be aggregated and compared across school 
45.2 	districts and across time on a statewide basis, including average daily attendance, high 
45.3 	school graduation rates, and high school drop-out rates by age and grade level;
45.4 	(3) state results on the American College Test; and
45.5 	(4) state results from participation in the National Assessment of Educational 
45.6 	Progress so that the state can benchmark its performance against the nation and other 
45.7 	states, and, where possible, against other countries, and contribute to the national effort 
45.8 	to monitor achievement.

45.9 	EFFECTIVE DATE. This section is effective the day following final enactment 
45.10 	with the following exceptions: paragraphs (f) and (g) are effective upon the adjournment 
45.11 	of the first regular session after which the commissioner, according to section 120B.30, 
45.12 	subdivision 5, has completed the standards setting process and determined a passing score 
45.13 	for graduation on the high school mathematics assessment that aligns to postsecondary 
45.14 	entrance requirements.

45.15 	Sec. 13. Minnesota Statutes 2008, section 120B.30, subdivision 1a, is amended to read:
45.16 		Subd. 1a.Statewide and local assessments; results. (a) The commissioner must 
45.17 	develop reading, mathematics, and science assessments aligned with state academic 
45.18 	standards that districts and sites must use to monitor student growth toward achieving 
45.19 	those standards. The commissioner must not develop statewide assessments for academic 
45.20 	standards in social studies, health and physical education, and the arts. The commissioner 
45.21 	must require:
45.22 	(1) annual reading and mathematics assessments in grades 3 through 8 and at the 
45.23 	high school level for the 2005-2006 school year and later; and
45.24 	(2) annual science assessments in one grade in the grades 3 through 5 span, the 
45.25 	grades 6 through 9 8 span, and a life sciences assessment in the grades 10 through 12 span
45.26 	any assessments at the high school level that must include a (i) life science and (ii) a 
45.27 	chemistry or physics assessment for the 2007-2008 school year and later.
45.28 	(b) The commissioner must ensure that all statewide tests administered to elementary 
45.29 	and secondary students measure students' academic knowledge and skills and not students' 
45.30 	values, attitudes, and beliefs.
45.31 	(c) Reporting of assessment results must:
45.32 	(1) provide timely, useful, and understandable information on the performance of 
45.33 	individual students, schools, school districts, and the state;
46.1 	(2) include, by no later than the 2008-2009 school year, a growth-based value-added 
46.2 	component that is in addition to a measure for student achievement growth over time
46.3 	indicator of student achievement under section 120B.35, subdivision 3, paragraph (b); and
46.4 	(3)(i) for students enrolled in grade 8 before the 2005-2006 school year, determine 
46.5 	whether students have met the state's basic skills requirements; and
46.6 	(ii) for students enrolled in grade 8 in the 2005-2006 school year and later, determine 
46.7 	whether students have met the state's academic standards.
46.8 	(d) Consistent with applicable federal law and subdivision 1, paragraph (d) (e), 
46.9 	clause (1), the commissioner must include appropriate, technically sound accommodations 
46.10 	or alternative assessments for the very few students with disabilities for whom statewide 
46.11 	assessments are inappropriate and for students with limited English proficiency.
46.12 	(e) A school, school district, and charter school must administer statewide 
46.13 	assessments under this section, as the assessments become available, to evaluate student 
46.14 	progress in achieving the proficiency in the context of the state's grade level academic 
46.15 	standards. If a state assessment is not available, a school, school district, and charter 
46.16 	school must determine locally if a student has met the required academic standards. A 
46.17 	school, school district, or charter school may use a student's performance on a statewide 
46.18 	assessment as one of multiple criteria to determine grade promotion or retention. A 
46.19 	school, school district, or charter school may use a high school student's performance on a 
46.20 	statewide assessment as a percentage of the student's final grade in a course, or place a 
46.21 	student's assessment score on the student's transcript except as required in paragraph (f).
46.22 	(f) A school, district, or charter school must place a student's highest assessment 
46.23 	score for each of the following assessments on the student's high school transcript: the 
46.24 	mathematics Minnesota Comprehensive Assessment, reading Minnesota Comprehensive 
46.25 	Assessment, and writing Graduation-Required Assessment for Diploma, and when 
46.26 	applicable, the mathematics Graduation-Required Assessment for Diploma and reading 
46.27 	Graduation-Required Assessment for Diploma.

46.28 	Sec. 14. Minnesota Statutes 2008, section 120B.30, subdivision 2, is amended to read:
46.29 		Subd. 2.Department of Education assistance. The Department of Education 
46.30 	shall contract for professional and technical services according to competitive bidding
46.31 	solicitation procedures under chapter 16C for purposes of this section.

46.32 	Sec. 15. Minnesota Statutes 2008, section 120B.30, is amended by adding a 
46.33 	subdivision to read:
47.1 		Subd. 5.High school mathematics assessment. (a) The commissioner, with 
47.2 	consultation from stakeholders, must identify a high school mathematics assessment by 
47.3 	February 15, 2010. The commissioner must align the high school mathematics assessment 
47.4 	to the most recent revision of mathematic standards as described in section 120B.023. 
47.5 	The commissioner must use the authority granted in paragraph (b) to prepare preliminary 
47.6 	administrations in order to determine a passing score in the high school mathematics 
47.7 	assessment through a standards setting process. The passing score must be aligned to 
47.8 	postsecondary entrance requirements. The commissioner must report to the legislature 
47.9 	upon final determination of a passing score.
47.10 	(b) For the purposes of paragraph (a), schools selected for stand-alone state field 
47.11 	testing by the department must participate as requested. Superintendents or charter school 
47.12 	directors may appeal in writing to the commissioner of education or the commissioner's 
47.13 	designee for an exemption from field testing if undue hardship is demonstrated. The 
47.14 	commissioner's decision regarding the appeal is final.

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

47.16 	Sec. 16. Minnesota Statutes 2008, section 120B.31, subdivision 1, is amended to read:
47.17 		Subdivision 1.Educational accountability and public reporting. Consistent 
47.18 	with the processdirection to adopt a results-oriented graduation rulestatewide academic 
47.19 	standards under section 120B.02, the department, in consultation with education and 
47.20 	other system stakeholders, must establish a coordinated and comprehensive system of 
47.21 	educational accountability and public reporting that promotes highergreater academic 
47.22 	achievement, preparation for higher academic education, preparation for the world of 
47.23 	work, citizenship under sections 120B.021, subdivision 1, clause (4), and 120B.024, 
47.24 	paragraph (a), clause (4), and the arts.  

47.25 	Sec. 17. Minnesota Statutes 2008, section 120B.31, subdivision 3, is amended to read:
47.26 		Subd. 3.Educational accountability. (a) The Independent Office of Educational 
47.27 	Accountability, as authorized by Laws 1997, First Special Session chapter 4, article 5, 
47.28 	section 28, subdivision 2, is established, and shall be funded through the Board of Regents 
47.29 	of the University of Minnesota. The office shall advise the education committees of 
47.30 	the legislature and the commissioner of education, at least on a biennial basis, on the 
47.31 	degree to which the statewide educational accountability and reporting system includes a 
47.32 	comprehensive assessment framework that measures school accountability for students 
47.33 	achieving the goals described in the state's results-orientedhigh school graduation 
48.1 	rule. The office shall determine and annually report to the legislature whether and how 
48.2 	effectively: 
48.3 	(1) the statewide system of educational accountability utilizesuses multiple 
48.4 	indicators to provide valid and reliable comparative and contextual data on students, 
48.5 	schools, districts, and the state, and if not, recommend ways to improve the accountability 
48.6 	reporting system;
48.7 	(2) the commissioner makes statistical adjustments when reporting student data over 
48.8 	time, consistent with clause (4);
48.9 	(3) the commissioner uses indicators of student achievement growtha growth-based 
48.10 	value-added indicator of student achievement over time and a value-added assessment 
48.11 	model that estimates the effects of the school and school district on student achievement to 
48.12 	measureand measures school performance, consistent with section 120B.36, subdivision 
48.13 	1 120B.35, subdivision 3, paragraph (b);
48.14 	(4) the commissioner makes(3) data are available on students who do not pass one 
48.15 	or more of the state's required GRAD tests and do not receive a diploma as a consequence, 
48.16 	and categorizes these data are categorized according to gender, race, eligibility for free 
48.17 	or reduced lunch, and English language proficiency; and
48.18 	(5) the commissioner fulfills(4) the requirements under section 127A.095, 
48.19 	subdivision 2, are met.
48.20 	(b) When the office reviews the statewide educational accountability and reporting 
48.21 	system, it shall also consider:
48.22 	(1) the objectivity and neutrality of the state's educational accountability system; and
48.23 	(2) the impact of a testing program on school curriculum and student learning.

48.24 	Sec. 18. Minnesota Statutes 2008, section 120B.31, subdivision 4, is amended to read:
48.25 		Subd. 4.Statistical adjustments; student performance data. In developing 
48.26 	policies and assessment processes to hold schools and districts accountable for high 
48.27 	levels of academic standards under section 120B.021, the commissioner shall aggregate 
48.28 	student data over time to report student performance and growth levels measured at the 
48.29 	school, school district, regional, orand statewide level. When collecting and reporting 
48.30 	the performance data, the commissioner shall: (1) acknowledge the impact of significant 
48.31 	demographic factors such as residential instability, the number of single parent families, 
48.32 	parents' level of education, and parents' income level on school outcomes; and (2)
48.33 	organize and report the data so that state and local policy makers can understand the 
48.34 	educational implications of changes in districts' demographic profiles over time. Any 
48.35 	report the commissioner disseminates containing summary data on student performance 
49.1 	must integrate student performance and the demographic factors that strongly correlate 
49.2 	with that performance.

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

49.4 	Sec. 19. Minnesota Statutes 2008, section 120B.35, is amended to read:
49.5 	120B.35 STUDENT ACADEMIC ACHIEVEMENT AND PROGRESS
49.6 	GROWTH.
49.7 		Subdivision 1.Adequate yearly progress of schools and students School and 
49.8 	student indicators of growth and achievement. The commissioner must develop and 
49.9 	implement a system for measuring and reporting academic achievement and individual 
49.10 	student progress growth, consistent with the statewide educational accountability and 
49.11 	reporting system. The system components of the system must measure and separately 
49.12 	report the adequate yearly progress of schools and the growth of individual students: 
49.13 	students' current achievement in schools under subdivision 2; and individual students' 
49.14 	educational progress growth over time under subdivision 3. The system also must include 
49.15 	statewide measures of student academic achievement growth that identify schools with 
49.16 	high levels of achievement growth, and also schools with low levels of achievement
49.17 	growth that need improvement. When determining a school's effect, the data must 
49.18 	include both statewide measures of student achievement and, to the extent annual tests 
49.19 	are administered, indicators of achievement growth that take into account a student's 
49.20 	prior achievement. Indicators of achievement and prior achievement must be based on 
49.21 	highly reliable statewide or districtwide assessments. Indicators that take into account a 
49.22 	student's prior achievement must not be used to disregard a school's low achievement or to 
49.23 	exclude a school from a program to improve low achievement levels. The commissioner 
49.24 	by January 15, 2002, must submit a plan for integrating these components to the chairs of 
49.25 	the legislative committees having policy and budgetary responsibilities for elementary 
49.26 	and secondary education.
49.27 		Subd. 2.Federal expectations for student academic achievement. (a) Each school 
49.28 	year, a school district must determine if the student achievement levels at each school site 
49.29 	meet state and local federal expectations. If student achievement levels at a school site do 
49.30 	not meet state and local federal expectations and the site has not made adequate yearly 
49.31 	progress for two consecutive school years, beginning with the 2001-2002 school year, 
49.32 	the district must work with the school site to adopt a plan to raise student achievement 
49.33 	levels to meet state and local federal expectations. The commissioner of education shall 
49.34 	establish student academic achievement levels to comply with this paragraph.
50.1 	(b) School sites identified as not meeting federal expectations must develop 
50.2 	continuous improvement plans in order to meet state and local federal expectations for 
50.3 	student academic achievement. The department, at a district's request, must assist the 
50.4 	district and the school site in developing a plan to improve student achievement. The plan 
50.5 	must include parental involvement components.
50.6 	(c) The commissioner must:
50.7 	(1) provide assistance to assist school sites and districts identified as not meeting 
50.8 	federal expectations; and
50.9 	(2) provide technical assistance to schools that integrate student progress
50.10 	achievement measures under subdivision 3 in into the school continuous improvement 
50.11 	plan.
50.12 	(d) The commissioner shall establish and maintain a continuous improvement Web 
50.13 	site designed to make data on every school and district available to parents, teachers, 
50.14 	administrators, community members, and the general public.
50.15 		Subd. 3.Student progress assessment State growth target; other state measures.
 50.16 	(a) The state's educational assessment system component measuring individual students' 
50.17 	educational progress must be growth is based, to the extent annual tests are administered,
50.18 	on indicators of achievement growth that show an individual student's prior achievement. 
50.19 	Indicators of achievement and prior achievement must be based on highly reliable 
50.20 	statewide or districtwide assessments.
50.21 	(b) The commissioner, in consultation with a recognized Minnesota assessment 
50.22 	group composed of assessment and evaluation directors and staff and researchers must 
50.23 	identify effective models for measuring individual student progress that enable a school 
50.24 	district or school site to perform gains-based analysis, including evaluating the effects of 
50.25 	the teacher, school, and school district on student achievement over time. At least one 
50.26 	model must be a "value-added" assessment model that reliably estimates those effects for 
50.27 	classroom settings where a single teacher teaches multiple subjects to the same group 
50.28 	of students, for team teaching arrangements, and for other teaching circumstances.
50.29 	implement a model that uses a growth-based value-added system and includes criteria 
50.30 	for identifying schools and school districts that demonstrate medium and high growth 
50.31 	under section 120B.299. The system may be used to advance educators' professional 
50.32 	development and replicate programs that succeed in meeting students' diverse learning 
50.33 	needs. Data on individual teachers generated under the model are personnel data under 
50.34 	section 13.43. The model must allow users to:
50.35 	(1) report student growth consistent with this paragraph; and
51.1 	(2) for all student categories with a cell size of at least 20, report and compare 
51.2 	aggregated and disaggregated state growth data using the nine student categories identified 
51.3 	under the federal 2001 No Child Left Behind Act and two student gender categories 
51.4 	of male and female, respectively.
51.5 	The commissioner must report separate measures of student growth and proficiency, 
51.6 	consistent with this paragraph.
51.7 	(c) If a district has an accountability plan that includes gains-based analysis or 
51.8 	"value-added" assessment, the commissioner shall, to the extent practicable, incorporate 
51.9 	those measures in determining whether the district or school site meets expectations. The 
51.10 	department must coordinate with the district in evaluating school sites and continuous 
51.11 	improvement plans, consistent with best practices.
51.12 		Subd. 4.Improving schools. Consistent with the requirements of this section, the 
51.13 	commissioner of education must establish a second achievement benchmark to identify 
51.14 	improving schools. The commissioner must recommend to annually report to the public 
51.15 	and the legislature by February 15, 2002, indicators in addition to the achievement 
51.16 	benchmark for identifying improving schools, including an indicator requiring a school 
51.17 	to demonstrate ongoing successful use of best teaching practices best practices learned 
51.18 	from those schools that demonstrate medium and high growth compared to the state 
51.19 	growth target.
51.20 		Subd. 5.Improving graduation rates for students with emotional or behavioral 
51.21 	disorders. (a) A district must develop strategies, in conjunction with parents of students 
51.22 	with emotional or behavioral disorders and the county board responsible for implementing 
51.23 	sections 245.487 to 245.4889, to keep students with emotional or behavioral disorders in 
51.24 	school, when the district has a drop-out rate for students with an emotional or behavioral 
51.25 	disorder in grades 9 through 12 exceeding 25 percent. 
51.26 	(b) A district must develop a plan, in conjunction with parents of students with 
51.27 	emotional or behavioral disorders and the local mental health authority, to increase the 
51.28 	graduation rates of students with emotional or behavioral disorders. A district with a 
51.29 	drop-out rate for children with an emotional or behavioral disturbance in grades 9 through 
51.30 	12 that is in the top 25 percent of all districts shall submit a plan for review and oversight 
51.31 	to the commissioner.

51.32 	EFFECTIVE DATE. Subdivision 3 is effective immediately and applies to students 
51.33 	in the 2008-2009 school year. Subdivision 4 is effective for the 2011-2012 school year 
51.34 	and later.

52.1 	Sec. 20. Minnesota Statutes 2008, section 120B.36, is amended to read:
52.2 	120B.36 SCHOOL ACCOUNTABILITY; APPEALS PROCESS.
52.3 		Subdivision 1.School performance report cards. (a) The commissioner shall 
52.4 	use objective criteria based on levels of student performance to report at least student 
52.5 	academic performance under section 120B.35, subdivision 2, the percentages of students 
52.6 	showing low, medium, and high growth under section 120B.35, subdivision 3, paragraph 
52.7 	(b), school safety, two separate student-to-teacher ratios that clearly indicate the definition 
52.8 	of teacher consistent with sections 122A.06 and 122A.15 for purposes of determining 
52.9 	these ratios, and staff characteristics excluding salaries, with a value-added component 
52.10 	added no later than the 2008-2009 school year student enrollment demographics, district 
52.11 	mobility, and extracurricular activities. The report must indicate a school's adequate yearly 
52.12 	progress status, and must not set any designations applicable to high- and low-performing 
52.13 	schools due solely to adequate yearly progress status.
52.14 	(b) The commissioner shall develop, annually update, and post on the department 
52.15 	Web site school performance report cards. 
52.16 	(c) The commissioner must make available the first performance report cards by 
52.17 	November 2003, and during the beginning of each school year thereafter.
52.18 	(d) A school or district may appeal its adequate yearly progress status in writing to 
52.19 	the commissioner within 30 days of receiving the notice of its status. The commissioner's 
52.20 	decision to uphold or deny an appeal is final.
52.21 	(e) School performance report cards card data are nonpublic data under section 
52.22 	13.02, subdivision 9, until not later than ten days after the appeal procedure described in 
52.23 	paragraph (d) concludes. The department shall annually post school performance report 
52.24 	cards to its public Web site no later than September 1. 
52.25 		Subd. 2.Adequate yearly progress data. All data the department receives, 
52.26 	collects, or creates for purposes of determining to determine adequate yearly progress 
52.27 	designations status under Public Law 107-110, section 1116, set state growth targets, and 
52.28 	determine student growth are nonpublic data under section 13.02, subdivision 9, until not 
52.29 	later than ten days after the appeal procedure described in subdivision 1, paragraph (d), 
52.30 	concludes. Districts must provide parents sufficiently detailed summary data to permit 
52.31 	parents to appeal under Public Law 107-110, section 1116(b)(2). The department shall 
52.32 	annually post federal adequate yearly progress data and state student growth data to its 
52.33 	public Web site no later than September 1. 

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

53.1 	Sec. 21. Minnesota Statutes 2008, section 121A.035, subdivision 2, is amended to read:
53.2 		Subd. 2.School district and charter school policy. A school board and a 
53.3 	charter school must adopt a crisis management policy to address potential violent crisis 
53.4 	situations in the district or charter school. The policy must be developed cooperatively 
53.5 	with administrators, teachers, employees, students, parents, community members, law 
53.6 	enforcement agencies, other emergency management officials, county attorney offices, 
53.7 	social service agencies, emergency medical responders, and any other appropriate 
53.8 	individuals or organizations. The policy must include at least five school lock-down 
53.9 	drills, five school fire drills consistent with section 299F.30, and one tornado drill, and an 
53.10 	expectation that students be present and participate in these drills. 

53.11 	EFFECTIVE DATE. This section is effective for the 2009-2010 school year and 
53.12 	later.

53.13 	Sec. 22. Minnesota Statutes 2008, section 121A.037, is amended to read:
53.14 	121A.037 SCHOOL SAFETY DRILLS.
53.15 	Private schools and educational institutions not subject to section 121A.035 must 
53.16 	have at least five school lock-down drills, five school fire drills consistent with section 
53.17 	299F.30, and one tornado drill, and an expectation that students be present and participate 
53.18 	in these drills.

53.19 	EFFECTIVE DATE. This section is effective for the 2009-2010 school year and 
53.20 	later.

53.21 	Sec. 23. Minnesota Statutes 2008, section 121A.15, subdivision 8, is amended to read:
53.22 		Subd. 8.Report. The administrator or other person having general control and 
53.23 	supervision of the elementary or secondary school shall file a report with the commissioner 
53.24 	on all persons enrolled in the school. The superintendent of each district shall file a report 
53.25 	with the commissioner for all persons within the district receiving instruction in a home 
53.26 	school in compliance with sections 120A.22 and 120A.24. The parent of persons receiving 
53.27 	instruction in a home school shall submit the statements as required by subdivisions 1, 2, 
53.28 	3, and 4 to the superintendent of the district in which the person resides by October 1 of 
53.29 	each school year the first year of their homeschooling and the 7th grade year. The school 
53.30 	report must be prepared on forms developed jointly by the commissioner of health and the 
53.31 	commissioner of education and be distributed to the local districts by the commissioner 
53.32 	of health. The school report must state the number of persons attending the school, the 
53.33 	number of persons who have not been immunized according to subdivision 1 or 2, and 
54.1 	the number of persons who received an exemption under subdivision 3, clause (c) or (d). 
54.2 	The school report must be filed with the commissioner of education within 60 days of the 
54.3 	commencement of each new school term. Upon request, a district must be given a 60-day 
54.4 	extension for filing the school report. The commissioner of education shall forward the 
54.5 	report, or a copy thereof, to the commissioner of health who shall provide summary 
54.6 	reports to boards of health as defined in section 145A.02, subdivision 2. The administrator 
54.7 	or other person having general control and supervision of the child care facility shall file a 
54.8 	report with the commissioner of human services on all persons enrolled in the child care 
54.9 	facility. The child care facility report must be prepared on forms developed jointly by 
54.10 	the commissioner of health and the commissioner of human services and be distributed 
54.11 	to child care facilities by the commissioner of health. The child care facility report 
54.12 	must state the number of persons enrolled in the facility, the number of persons with no 
54.13 	immunizations, the number of persons who received an exemption under subdivision 3, 
54.14 	clause (c) or (d), and the number of persons with partial or full immunization histories. 
54.15 	The child care facility report must be filed with the commissioner of human services by 
54.16 	November 1 of each year. The commissioner of human services shall forward the report, 
54.17 	or a copy thereof, to the commissioner of health who shall provide summary reports to 
54.18 	boards of health as defined in section 145A.02, subdivision 2. The report required by this 
54.19 	subdivision is not required of a family child care or group family child care facility, for 
54.20 	prekindergarten children enrolled in any elementary or secondary school provided services 
54.21 	according to sections 125A.05 and 125A.06, nor for child care facilities in which at least 
54.22 	75 percent of children in the facility participate on a onetime only or occasional basis to a 
54.23 	maximum of 45 hours per child, per month. 

54.24 	Sec. 24. Minnesota Statutes 2008, section 122A.06, subdivision 4, is amended to read:
54.25 		Subd. 4.Comprehensive, scientifically based reading instruction. (a) 
54.26 	"Comprehensive, scientifically based reading instruction" includes a program or collection 
54.27 	of instructional practices that is based on reliable, valid, replicated  evidence showing 
54.28 	that when these programs or practices are used, students can be expected to achieve, at 
54.29 	a minimum, satisfactory reading progress. The program or collection of practices must 
54.30 	include, at a minimum, instruction in five areas of reading: phonemic awareness, phonics, 
54.31 	fluency, vocabulary development, and text reading comprehension.
54.32 	Comprehensive, scientifically based reading instruction also includes and integrates 
54.33 	instructional strategies for continuously assessing, evaluating, and communicating 
54.34 	the student's reading progress and needs in order to design and implement ongoing 
55.1 	interventions so that students of all ages and proficiency levels can read and comprehend 
55.2 	text and apply higher level thinking skills.
55.3 	(b) "Fluency" is the ability of students to be able to read text with speed, accuracy, 
55.4 	and proper expression. 
55.5 	(c) "Phonemic awareness" is the ability of students to notice, think about, and 
55.6 	manipulate the individual sounds in spoken syllables and words.
55.7 	(d) "Phonics" is the understanding that there are systematic and predictable 
55.8 	relationships between written letters and spoken words. Phonics instruction is a way 
55.9 	of teaching reading that stresses learning how letters correspond to sounds and how to 
55.10 	apply this knowledge in reading and spelling.
55.11 	(e) "Reading comprehension" is an active process that requires intentional thinking 
55.12 	during which meaning is constructed through interactions between text and reader. 
55.13 	Comprehension skills are taught explicitly by demonstrating, explaining, modeling, and 
55.14 	implementing specific cognitive strategies to help beginning readers derive meaning by 
55.15 	intentional, problem-solving thinking processes.
55.16 	(f) "Vocabulary development" is the process of teaching vocabulary both directly 
55.17 	and indirectly, with repetition and multiple exposures to vocabulary items. Learning 
55.18 	in rich contexts, incidental learning, and use of computer technology all enhance the 
55.19 	acquisition of vocabulary.

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

55.21 	Sec. 25. Minnesota Statutes 2008, section 122A.07, subdivision 2, is amended to read:
55.22 		Subd. 2.Eligibility; board composition. Except for the representatives of higher 
55.23 	education and the public, to be eligible for appointment to the Board of Teaching a person 
55.24 	must be a teacher currently teaching in a Minnesota school and fully licensed for the 
55.25 	position held and have at least five years teaching experience in Minnesota, including the 
55.26 	two years immediately preceding nomination and appointment. Each nominee, other than 
55.27 	a public nominee, must be selected on the basis of professional experience and knowledge 
55.28 	of teacher education, accreditation, and licensure. The board must be composed of:
55.29 	(1) six teachers who are currently teaching in a Minnesota school or who were 
55.30 	teaching at the time of the appointment and who do not qualify under clause (2) or (3) of 
55.31 	this subdivision, at least four of whom must be teaching in a public school;
55.32 	(2) one higher education representative, who must be a faculty member preparing 
55.33 	teachers;
55.34 	(3) one school administrator; and
56.1 	(4) three members of the public, two of whom must be present or former members 
56.2 	of school boards.

56.3 	Sec. 26. Minnesota Statutes 2008, section 122A.07, subdivision 3, is amended to read:
56.4 		Subd. 3.Vacant position. With the exception of a teacher who retires from teaching 
56.5 	during the course of completing a board term, the position of a member who leaves 
56.6 	Minnesota or whose employment status changes to a category different from that from 
56.7 	which appointed is deemed vacant.

56.8 	Sec. 27. Minnesota Statutes 2008, section 122A.18, subdivision 2, is amended to read:
56.9 		Subd. 2.Teacher and support personnel qualifications. (a) The Board of 
56.10 	Teaching must issue licenses under its jurisdiction to persons the board finds to be 
56.11 	qualified and competent for their respective positions.
56.12 	(b) The board must require a person to successfully complete an examination of 
56.13 	skills in reading, writing, and mathematics before being granted an initial teaching license 
56.14 	to provide direct instruction to pupils in prekindergarten, elementary, secondary, or special 
56.15 	education programs. In addition, the board must require a person to successfully complete 
56.16 	an assessment of reading instruction consistent with subdivision 2c before being granted 
56.17 	an initial teaching license to provide explicit, sequential, and systematic instruction 
56.18 	to pupils in prekindergarten or elementary programs. The board must require colleges 
56.19 	and universities offering a board approved teacher preparation program to provide 
56.20 	remedial assistance that includes a formal diagnostic component to persons enrolled 
56.21 	in their institution who did not achieve a qualifying score on the skills examination
56.22 	or an assessment of reading instruction, including those for whom English is a second 
56.23 	language. The colleges and universities must provide assistance in the specific academic 
56.24 	areas of deficiency in which the person did not achieve a qualifying score. School 
56.25 	districts must provide similar, appropriate, and timely remedial assistance that includes a 
56.26 	formal diagnostic component and mentoring to those persons employed by the district 
56.27 	who completed their teacher education program outside the state of Minnesota, received 
56.28 	a one-year license to teach in Minnesota and did not achieve a qualifying score on the 
56.29 	skills examination, including those persons for whom English is a second language. The 
56.30 	Board of Teaching shall report annually to the education committees of the legislature 
56.31 	on the total number of teacher candidates during the most recent school year taking the 
56.32 	skills examination, the number who achieve a qualifying score on the examination, the 
56.33 	number who do not achieve a qualifying score on the examination, the distribution of all 
56.34 	candidates' scores, the number of candidates who have taken the examination at least once 
57.1 	before, and the number of candidates who have taken the examination at least once before 
57.2 	and achieve a qualifying score.
57.3 	(c) A person who has completed an approved teacher preparation program and 
57.4 	obtained a one-year license to teach, but has not successfully completed the skills 
57.5 	examination, may renew the one-year license for two additional one-year periods. Each 
57.6 	renewal of the one-year license is contingent upon the licensee:
57.7 	(1) providing evidence of participating in an approved remedial assistance program 
57.8 	provided by a school district or postsecondary institution that includes a formal diagnostic 
57.9 	component in the specific areas in which the licensee did not obtain qualifying scores; and
57.10 	(2) attempting to successfully complete the skills examination during the period 
57.11 	of each one-year license.
57.12 	(d) The Board of Teaching must grant continuing licenses only to those persons who 
57.13 	have met board criteria for granting a continuing license, which includes successfully 
57.14 	completing the skills examination in reading, writing, and mathematics.
57.15 	(e) All colleges and universities approved by the board of teaching to prepare 
57.16 	persons for teacher licensure must include in their teacher preparation programs a common 
57.17 	core of teaching knowledge and skills to be acquired by all persons recommended 
57.18 	for teacher licensure. This common core shall meet the standards developed by the 
57.19 	interstate new teacher assessment and support consortium in its 1992 "model standards for 
57.20 	beginning teacher licensing and development." Amendments to standards adopted under 
57.21 	this paragraph are covered by chapter 14. The board of teaching shall report annually to 
57.22 	the education committees of the legislature on the performance of teacher candidates 
57.23 	on common core assessments of knowledge and skills under this paragraph during the 
57.24 	most recent school year.

57.25 	EFFECTIVE DATE. This section is effective January 1, 2011.

57.26 	Sec. 28. Minnesota Statutes 2008, section 122A.18, subdivision 2a, is amended to read:
57.27 		Subd. 2a.Reading strategies. (a) All colleges and universities approved by the 
57.28 	Board of Teaching to prepare persons for classroom teacher licensure must include in 
57.29 	their teacher preparation programs research-based best practices in reading, consistent 
57.30 	with section 122A.06, subdivision 4, that enable the licensure candidate to know how to 
57.31 	teach reading in the candidate's content areas and prepare the licensure candidate, where 
57.32 	applicable, for an assessment of reading instruction.
57.33 	(b) Board-approved teacher preparation programs for teachers of elementary 
57.34 	education must require instruction in the application of comprehensive, scientifically 
57.35 	based, and balanced reading instruction programs that:
58.1 	(1) teach students to read using foundational knowledge, practices, and strategies 
58.2 	consistent with section 122A.06, subdivision 4, so that all students will achieve continuous 
58.3 	progress in reading; and
58.4 	(2) teach specialized instruction in reading strategies, interventions, and remediations 
58.5 	that enable students of all ages and proficiency levels to become proficient readers.

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

58.7 	Sec. 29. Minnesota Statutes 2008, section 122A.18, is amended by adding a 
58.8 	subdivision to read:
58.9 		Subd. 2c.Assessment of reading instruction. An assessment of reading instruction, 
58.10 	selected by the Board of Teaching, in cooperation with the commissioner of education, 
58.11 	must measure, at a minimum, the knowledge, skill, and ability of prekindergarten and 
58.12 	elementary licensure candidates in comprehensive, scientifically based reading instruction 
58.13 	as defined in section 122A.06. Test content areas must assess foundations of reading 
58.14 	development, development of reading comprehension, reading assessment and instruction, 
58.15 	and integration of knowledge and understanding. The Board of Teaching may incorporate 
58.16 	the requirements of this subdivision into other teacher licensure examinations.

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

58.18 	Sec. 30. [122A.245] ALTERNATIVE TEACHER PREPARATION PROGRAM 
58.19 	AND RESIDENT TEACHER LICENSE FOR QUALIFIED NONTRADITIONAL 
58.20 	CANDIDATES.
58.21 		Subdivision 1.Requirements. (a) A teacher preparation program that is an 
58.22 	alternative to a postsecondary teacher preparation program and to the preparation program 
58.23 	under section 122A.24 and a two-year resident teacher license, which may be renewed 
58.24 	one time by a resident teacher in good standing, are established as a means of acquiring 
58.25 	a standard entrance license. Either (i) a college or university with a board-approved 
58.26 	alternative teacher preparation program or (ii) a nonprofit corporation formed for an 
58.27 	education-related purpose and subject to chapter 317A with a board-approved alternative 
58.28 	preparation program leading to a standard entrance license may offer this program in 
58.29 	any instructional field but must not restrict the program based on geography or on 
58.30 	an oversupply of licensed teachers in any particular instructional field. The Board of 
58.31 	Teaching must ensure that this program serves to enhance any efforts by the state or 
58.32 	a school district to reduce or eliminate the academic achievement gap among identified 
58.33 	categories of students.
59.1 	(b) To participate in this program, a candidate must:
59.2 	(1) have a bachelor's degree with a minimum 3.0 grade point average;
59.3 	(2) pass the reading, writing, and mathematics skills examination under section 
59.4 	122A.18; and
59.5 	(3) obtain qualifying scores on board-approved content area and pedagogy tests.
59.6 	(c) The board may waive the minimum grade point average requirement in paragraph 
59.7 	(b), clause (1), for candidates with a grade point average of 2.75 or higher.
59.8 		Subd. 2.Characteristics. An alternative teacher preparation program offered by an 
59.9 	eligible college or university or nonprofit corporation under this section must include:
59.10 	(1) a minimum 200-hour instructional phase that provides intensive preparation for 
59.11 	the resident teacher before that person assumes classroom responsibilities;
59.12 	(2) a research-based and results-oriented approach focused on best teaching practices 
59.13 	to increase student proficiency and growth as measured against state academic standards;
59.14 	(3) strategies to combine pedagogy and best teaching practices to better inform 
59.15 	teachers' classroom instruction;
59.16 	(4) assessment, supervision, and evaluation of the program participant to determine 
59.17 	the participant's specific needs throughout the program and to support the participant 
59.18 	in successfully completing the program;
59.19 	(5) formal instruction and intensive peer coaching during the school year that 
59.20 	provide structured guidance and regular ongoing support;
59.21 	(6) high quality, sustained, intensive, and classroom-embedded staff development 
59.22 	opportunities conducted by a resident mentor or by a mentorship team that may include 
59.23 	school administrators, teachers, and postsecondary faculty members and are directed at 
59.24 	improving student learning and achievement; and
59.25 	(7) a requirement that program participants demonstrate satisfactory progress toward 
59.26 	receiving from the Board of Teaching a standard entrance license at the time the person's 
59.27 	resident teacher license finally expires.
59.28 		Subd. 3.Program approval. The Board of Teaching must approve alternative 
59.29 	teacher preparation programs under this section based on board-adopted criteria that reflect 
59.30 	best practices for alternative teacher preparation programs, consistent with this section. 
59.31 	The board must permit licensure candidates to demonstrate licensure competencies in 
59.32 	school-based settings and through other nontraditional licensure pathways.
59.33 		Subd. 4.Reissued resident teacher license; approval for standard entrance 
59.34 	license. A resident mentor or mentorship team under subdivision 2, clause (6), must 
59.35 	evaluate the performance of the resident teacher and submit to the board an evaluation 
60.1 	report recommending whether or not to reissue the person a resident teacher license or 
60.2 	to issue the resident teacher a standard entrance license. 
60.3 		Subd. 5.Standard entrance license. The Board of Teaching may issue a standard 
60.4 	entrance license to a resident teacher under this section who successfully performs 
60.5 	throughout the program and is recommended for licensure under subdivision 4.
60.6 		Subd. 6.Qualified teacher. A person with a valid resident teacher license under 
60.7 	this section is the teacher of record and a qualified teacher within the meaning of section 
60.8 	122A.16.

60.9 	EFFECTIVE DATE. This section is effective for the 2009-2010 school year and 
60.10 	later.

60.11 	Sec. 31. Minnesota Statutes 2008, section 122A.31, subdivision 4, is amended to read:
60.12 		Subd. 4.Reimbursement. (a) For purposes of revenue under section 125A.78
60.13 	125A.76, the Department of Education must only reimburse school districts for the 
60.14 	services of those interpreters/transliterators who satisfy the standards of competency 
60.15 	under this section.  
60.16 	(b) Notwithstanding paragraph (a), a district shall be reimbursed for the services 
60.17 	of interpreters with a nonrenewable provisional certificate, interpreters/transliterators 
60.18 	employed to mentor the provisional certified interpreters, and persons for whom a 
60.19 	time-limited extension has been granted under subdivision 1, paragraph (d), or subdivision 
60.20 	2, paragraph (c).

60.21 	Sec. 32. Minnesota Statutes 2008, section 122A.413, subdivision 2, is amended to read:
60.22 		Subd. 2.Plan components. The educational improvement plan must be approved 
60.23 	by the school board and have at least these elements:
60.24 	(1) assessment and evaluation tools to measure student performance and progress;
60.25 	(2) performance goals and benchmarks for improvement;
60.26 	(3) measures of student attendance and completion rates;
60.27 	(4) a rigorous professional development system, consistent with section 122A.60, 
60.28 	that is aligned with educational improvement, designed to achieve teaching quality 
60.29 	improvement, instructional leadership, and consistent with clearly defined research-based 
60.30 	standards;
60.31 	(5) measures of student, family, and community involvement and satisfaction;
60.32 	(6) a data system about students and their academic progress that provides parents 
60.33 	and the public with understandable information;
61.1 	(7) a teacher induction and mentoring program for probationary teachers that 
61.2 	provides continuous learning and sustained teacher support; and
61.3 	(8) substantial participation by the exclusive representative of the teachers in 
61.4 	developing the plan.

61.5 	Sec. 33. Minnesota Statutes 2008, section 122A.414, subdivision 2b, is amended to 
61.6 	read:
61.7 		Subd. 2b.Approval process. (a) Consistent with the requirements of this section 
61.8 	and sections 122A.413 and 122A.415, the department must prepare and transmit to 
61.9 	interested school districts, intermediate school districts, school sites, and charter schools 
61.10 	a standard form for applying to participate in the alternative teacher professional 
61.11 	pay system. An interested school district, intermediate school district, school site, or 
61.12 	charter school must submit to the commissioner by February 1, May 1, or November 
61.13 	1 a completed application executed by the district superintendent and the exclusive 
61.14 	bargaining representative of the teachers if the applicant is a school district, intermediate 
61.15 	school district, or school site, or executed by the charter school board of directors if 
61.16 	the applicant is a charter school. The application must include the proposed alternative 
61.17 	teacher professional pay system agreement under subdivision 2. The department must 
61.18 	convene a review committee that at least includes teachers and administrators a completed 
61.19 	application within 30 days of receiving a completed application to it and recommend to 
61.20 	the commissioner whether to approve or disapprove the application. The commissioner 
61.21 	must approve applications on a first-come, first-served basis. The applicant's alternative 
61.22 	teacher professional pay system agreement must be legally binding on the applicant 
61.23 	and the collective bargaining representative before the applicant receives alternative 
61.24 	compensation revenue. The commissioner must approve or disapprove an application 
61.25 	based on the requirements under subdivisions 2 and 2a.
61.26 	(b) If the commissioner disapproves an application, the commissioner must give the 
61.27 	applicant timely notice of the specific reasons in detail for disapproving the application. 
61.28 	The applicant may revise and resubmit its application and related documents to the 
61.29 	commissioner within 30 days of receiving notice of the commissioner's disapproval and 
61.30 	the commissioner must approve or disapprove the revised application, consistent with this 
61.31 	subdivision. Applications that are revised and then approved are considered submitted on 
61.32 	the date the applicant initially submitted the application.

61.33 	EFFECTIVE DATE. This section is effective the day following final enactment 
61.34 	and applies to all applications submitted by the May 1, 2009, deadline and later.

62.1 	Sec. 34. Minnesota Statutes 2008, section 122A.414, is amended by adding a 
62.2 	subdivision to read:
62.3 		Subd. 2c.Cancellation timing. If the commissioner determines that a school 
62.4 	district that had previously qualified to participate in the alternative teacher professional 
62.5 	pay system under this section is no longer in compliance with the program's requirements 
62.6 	under this section and section 122A.413, the commissioner may not cancel a school 
62.7 	district's participation in the middle of a school year. The commissioner must notify 
62.8 	the district 30 days prior to the end of the district's school year if the commissioner 
62.9 	intends to end a district's participation in the program for the subsequent school year. The 
62.10 	school district must be given the opportunity to correct its compliance with this section 
62.11 	and section 122A.413 before the district's participation in the program is ended in the 
62.12 	subsequent school year.

62.13 	Sec. 35. Minnesota Statutes 2008, section 122A.415, is amended by adding a 
62.14 	subdivision to read:
62.15 		Subd. 4.Basic alternative teacher compensation aid. (a) For fiscal years 2011 
62.16 	and later, the basic alternative teacher compensation aid for a school district with a plan 
62.17 	approved under section 122A.414, subdivision 2b, equals 65 percent of the alternative 
62.18 	teacher compensation revenue under subdivision 1. The basic alternative teacher 
62.19 	compensation aid for an intermediate school district or charter school with a plan approved 
62.20 	under section 122A.414, subdivisions 2a and 2b, if the recipient is a charter school equals 
62.21 	$260 times the number of pupils enrolled in the school on October 1 of the previous 
62.22 	fiscal year, or on October 1 of the current fiscal year for a charter school in the first year 
62.23 	of operation, times the ratio of the sum of the alternative teacher compensation aid and 
62.24 	alternative teacher compensation levy for all participating school districts to the maximum 
62.25 	alternative teacher compensation revenue for those districts under subdivision 1.
62.26 	(b) Notwithstanding subdivision 1, the state total basic alternative teacher 
62.27 	compensation aid entitlement must not exceed $75,636,000 for fiscal year 2007 and 
62.28 	later. The commissioner must limit the amount of alternative teacher compensation aid 
62.29 	approved under this section so as not to exceed these limits.

62.30 	Sec. 36. Minnesota Statutes 2008, section 122A.415, is amended by adding a 
62.31 	subdivision to read:
62.32 		Subd. 5.Alternative teacher compensation levy. For fiscal year 2011 and later, 
62.33 	the alternative teacher compensation levy for a district receiving basic alternative teacher 
62.34 	compensation aid equals the product of (1) the difference between the district's alternative 
63.1 	teacher compensation revenue and the district's basic alternative teacher compensation 
63.2 	aid times (2) the lesser of one or the ratio of the district's adjusted net tax capacity per 
63.3 	adjusted pupil unit to $5,913.

63.4 	Sec. 37. Minnesota Statutes 2008, section 122A.415, is amended by adding a 
63.5 	subdivision to read:
63.6 		Subd. 6.Alternative teacher compensation equalization aid. (a) For fiscal year 
63.7 	2011 and later, a district's alternative teacher compensation equalization aid equals the 
63.8 	district's alternative teacher compensation revenue minus the district's basic alternative 
63.9 	teacher compensation aid minus the district's alternative teacher compensation levy. If a 
63.10 	district does not levy the entire amount permitted, the alternative teacher compensation 
63.11 	equalization aid must be reduced in proportion to the actual amount levied.
63.12 	(b) A district's alternative teacher compensation aid equals the sum of the 
63.13 	district's basic alternative teacher compensation aid and the district's alternative teacher 
63.14 	compensation equalization aid.

63.15 	Sec. 38. [122A.4155] ALTERNATIVE COMPENSATION APPLICATION 
63.16 	GRANTS.
63.17 		Subdivision 1.Reallocation. By June 1, 2011, and each year thereafter, the 
63.18 	unexpended alternative compensation aid, under sections 122.415, subdivision 4, and 
63.19 	126C.10, subdivision 34, from the prior fiscal year must be reallocated to eligible school 
63.20 	districts to help districts pay for the costs associated with applying to participate in the 
63.21 	alternative compensation program. The commissioner must reallocate the unexpended 
63.22 	alternative compensation aid as grants by June 30, 2011, and each year thereafter. The 
63.23 	Department of Finance and Department of Education shall continue to forecast the 
63.24 	alternative compensation aid, under section 122A.415, subdivision 4. On November 15, 
63.25 	2012, and each year thereafter, the Department of Education must certify the amount of 
63.26 	aid that is available to be reallocated to grants under this section. The Department of 
63.27 	Education may make a reasonable estimate to prorate grants under this section to ensure 
63.28 	that sufficient funding is available to fully fund the forecasted aid under section 122A.415, 
63.29 	subdivision 4.
63.30 		Subd. 2.Eligibility. School districts located in greater Minnesota that have 
63.31 	submitted a letter of intent and begun the transitional planning year, under section 
63.32 	122A.414, subdivision 1a, are eligible for alternative compensation application grants. 
63.33 	For the purposes of this section, an eligible school district is any school district located in 
63.34 	the rural equity region, under section 126C.10, subdivision 28.
64.1 		Subd. 3.Awards. The commissioner of education must reallocate available aid 
64.2 	to eligible school districts to encourage participation in the alternative compensation 
64.3 	program. The commissioner may establish criteria to select greater Minnesota school 
64.4 	districts. School districts that receive grants under this section must be given priority for 
64.5 	full participation in alternative compensation program in the subsequent year.
64.6 		Subd. 4.Restriction. A school district that receives a grant under subdivision 
64.7 	3, must use the grant to facilitate the district's progress toward full participation in 
64.8 	the alternative compensation program. The commissioner may establish reasonable 
64.9 	restrictions on the use of the grant funds to encourage full participation in the alternative 
64.10 	compensation program.

64.11 	Sec. 39. Minnesota Statutes 2008, section 122A.60, subdivision 1a, is amended to read:
64.12 		Subd. 1a.Effective staff development activities. (a) Staff development activities 
64.13 	must:
64.14 	(1) focus on the school classroom and research-based strategies that improve student 
64.15 	learning;
64.16 	(2) provide opportunities for teachers to practice and improve their instructional 
64.17 	skills over time;
64.18 	(3) provide opportunities for teachers to use student data as part of their daily work 
64.19 	to increase student achievement;
64.20 	(4) enhance teacher content knowledge and instructional skills;
64.21 	(5) align with state and local academic standards;
64.22 	(6) provide opportunities to build professional relationships, foster collaboration 
64.23 	among principals and staff who provide instruction, and provide opportunities for 
64.24 	teacher-to-teacher mentoring; and
64.25 	(7) align with the plan of the district or site for an alternative teacher professional 
64.26 	pay system.
64.27 	Staff development activities may include curriculum development and curriculum training 
64.28 	programs, and activities that provide teachers and other members of site-based teams 
64.29 	training to enhance team performance, and basic first aid, including CPR and the use of 
64.30 	automatic external defibrillators with an option for certification. The school district also 
64.31 	may implement other staff development activities required by law and activities associated 
64.32 	with professional teacher compensation models.
64.33 	(b) Release time provided for teachers to supervise students on field trips and school 
64.34 	activities, or independent tasks not associated with enhancing the teacher's knowledge 
64.35 	and instructional skills, such as preparing report cards, calculating grades, or organizing 
65.1 	classroom materials, may not be counted as staff development time that is financed with 
65.2 	staff development reserved revenue under section 122A.61.

65.3 	Sec. 40. Minnesota Statutes 2008, section 122A.61, subdivision 1, is amended to read:
65.4 		Subdivision 1.Staff development revenue. A district is required to reserve 
65.5 	an amount equal to at least two percent of the basic revenue under section 126C.10, 
65.6 	subdivision 2, for in-service education for programs under section 120B.22, subdivision 
65.7 	2, for staff development plans, including plans for challenging instructional activities 
65.8 	and experiences under section 122A.60, and for curriculum development and programs, 
65.9 	other in-service education, teachers' workshops, teacher conferences, the cost of 
65.10 	substitute teachers staff development purposes, preservice and in-service education for 
65.11 	special education professionals and paraprofessionals, and other related costs for staff 
65.12 	development efforts. A district may annually waive the requirement to reserve their basic 
65.13 	revenue under this section if a majority vote of the licensed teachers in the district and 
65.14 	a majority vote of the school board agree to a resolution to waive the requirement. A 
65.15 	district in statutory operating debt is exempt from reserving basic revenue according to 
65.16 	this section. Districts may expend an additional amount of unreserved revenue for staff 
65.17 	development based on their needs. With the exception of amounts reserved for staff 
65.18 	development from revenues allocated directly to school sites and any amounts spent for 
65.19 	first aid or CPR and automatic external defibrillator training, the board must initially 
65.20 	allocate 50 percent of the remaining reserved revenue to each school site in the district on 
65.21 	a per teacher basis, which must be retained by the school site until used. The board may 
65.22 	retain 25 percent to be used for district wide staff development efforts. The remaining 
65.23 	25 percent of the revenue must be used to make grants to school sites for best practices 
65.24 	methods. A grant may be used for any purpose authorized under section 120B.22, 
65.25 	subdivision 2, 122A.60, or for the costs of curriculum development and programs, other 
65.26 	in-service education, teachers' workshops, teacher conferences, substitute teachers for 
65.27 	staff development purposes, and other staff development efforts, and determined by 
65.28 	the site professional development team. The site professional development team must 
65.29 	demonstrate to the school board the extent to which staff at the site have met the outcomes 
65.30 	of the program. The board may withhold a portion of initial allocation of revenue if the 
65.31 	staff development outcomes are not being met.  

65.32 	Sec. 41. Minnesota Statutes 2008, section 123A.05, is amended to read:
65.33 	123A.05 AREA LEARNING CENTER STATE-APPROVED ALTERNATIVE 
65.34 	PROGRAM ORGANIZATION.
66.1 		Subdivision 1.Governance. (a) A district may establish an area learning center 
66.2 	either by itself or in cooperation with other districts, alternative learning program, or 
66.3 	contract alternative in accordance with sections 124D.68, subdivision 3, paragraph (d), 
66.4 	and 124D.69.
66.5 	(b) An area learning center is encouraged to cooperate with a service cooperative, an 
66.6 	intermediate school district, a local education and employment transitions partnership, 
66.7 	public and private secondary and postsecondary institutions, public agencies, businesses, 
66.8 	and foundations. Except for a district located in a city of the first class, a an area 
66.9 	learning center must be established in cooperation with other districts and must serve 
66.10 	the geographic area of at least two districts. An area learning center must provide 
66.11 	comprehensive educational services to enrolled secondary students throughout the year, 
66.12 	including a daytime school within a school or separate site for both high school and 
66.13 	middle school level students.
66.14 	(c) An alternative learning program may serve the students of one or more districts, 
66.15 	may designate which grades are served, and may make program hours and a calendar 
66.16 	optional.
66.17 	(d) A contract alternative is an alternative learning program operated by a private 
66.18 	organization that has contracted with a school district to provide educational services for 
66.19 	students under section 124D.68, subdivision 2.
66.20 		Subd. 2.Reserve revenue. Each district that is a member of an area learning center 
66.21 	or alternative learning program must reserve revenue in an amount equal to the sum of (1) 
66.22 	at least 90 percent of the district average general education revenue per pupil unit minus 
66.23 	an amount equal to the product of the formula allowance according to section 126C.10, 
66.24 	subdivision 2, times .0485, calculated without basic skills revenue and transportation 
66.25 	sparsity revenue, times the number of pupil units attending an area learning center or 
66.26 	alternative learning program under this section, plus (2) the amount of basic skills revenue 
66.27 	generated by pupils attending the area learning center or alternative learning program. The 
66.28 	amount of reserved revenue under this subdivision may only be spent on program costs 
66.29 	associated with the area learning center or alternative learning program.
66.30 		Subd. 3.Access to services. A center state-approved alternative program shall have 
66.31 	access to the district's regular education programs, special education programs, technology 
66.32 	facilities, and staff. It may contract with individuals or postsecondary institutions. It shall 
66.33 	seek the involvement of community education programs, postsecondary institutions, 
66.34 	interagency collaboratives, culturally based organizations, mutual assistance associations, 
66.35 	and other community resources, businesses, and other federal, state, and local public 
66.36 	agencies.
67.1 		Subd. 4.Nonresident pupils. A pupil who does not reside in the district may 
67.2 	attend a center state-approved alternative program without consent of the school board of 
67.3 	the district of residence.

67.4 	Sec. 42. Minnesota Statutes 2008, section 123A.06, is amended to read:
67.5 	123A.06 CENTER STATE-APPROVED ALTERNATIVE PROGRAMS AND 
67.6 	SERVICES.
67.7 		Subdivision 1.Program focus. (a) The programs and services of a center
67.8 	state-approved alternative program must focus on academic and learning skills, applied 
67.9 	learning opportunities, trade and vocational skills, work-based learning opportunities, 
67.10 	work experience, youth service to the community, transition services, and English 
67.11 	language and literacy programs for children whose primary language is a language other 
67.12 	than English. Applied learning, work-based learning, and service learning may best be 
67.13 	developed in collaboration with a local education and transitions partnership, culturally 
67.14 	based organizations, mutual assistance associations, or other community resources. 
67.15 	In addition to offering programs, the center state-approved alternative program shall 
67.16 	coordinate the use of other available educational services, special education services, 
67.17 	social services, health services, and postsecondary institutions in the community and 
67.18 	services area.
67.19 	(b) Consistent with the requirements of sections 121A.40 to 121A.56, a school 
67.20 	district may provide an alternative education program for a student who is within the 
67.21 	compulsory attendance age under section 120A.20, and who is involved in severe or 
67.22 	repeated disciplinary action.  
67.23 		Subd. 2.People to be served. A center state-approved alternative program shall 
67.24 	provide programs for secondary pupils and adults. A center may also provide programs 
67.25 	and services for elementary and secondary pupils who are not attending the center
67.26 	state-approved alternative program to assist them in being successful in school. A center 
67.27 	shall use research-based best practices for serving limited English proficient students and 
67.28 	their parents. An individual education plan team may identify a center state-approved 
67.29 	alternative program as an appropriate placement to the extent a center state-approved 
67.30 	alternative program can provide the student with the appropriate special education services 
67.31 	described in the student's plan. Pupils eligible to be served are those who qualify under 
67.32 	the graduation incentives program in section 124D.68, subdivision 2, those enrolled 
67.33 	under section 124D.02, subdivision 2, or those pupils who are eligible to receive special 
67.34 	education services under sections 125A.03 to 125A.24, and 125A.65. 
68.1 		Subd. 3.Hours of instruction exemption. Notwithstanding any law to the contrary, 
68.2 	the area learning center programs must be available throughout the entire year. A center 
68.3 	may petition the state board under Minnesota Rules, part 3500.1000, for exemption from 
68.4 	other rules.
68.5 		Subd. 4.Granting a diploma. Upon successful completion of the area learning 
68.6 	center program, a pupil is entitled to receive a high school diploma. The pupil may elect 
68.7 	to receive a diploma from either the district of residence or the district in which the area 
68.8 	learning center is located.

68.9 	Sec. 43. Minnesota Statutes 2008, section 123A.08, is amended to read:
68.10 	123A.08 CENTER STATE-APPROVED ALTERNATIVE PROGRAM 
68.11 	 FUNDING.
68.12 		Subdivision 1.Outside sources for resources and services. A center
68.13 	state-approved alternative program may accept:
68.14 	(1) resources and services from postsecondary institutions serving center
68.15 	state-approved alternative program pupils;
68.16 	(2) resources from Job Training Partnership Workforce Investment  Act programs, 
68.17 	including funding for jobs skills training for various groups and the percentage reserved 
68.18 	for education;
68.19 	(3) resources from the Department of Human Services and county welfare funding;
68.20 	(4) resources from a local education and employment transitions partnership; or
68.21 	(5) private resources, foundation grants, gifts, corporate contributions, and other 
68.22 	grants.
68.23 		Subd. 2.General education aid. Payment of general education aid for nonresident 
68.24 	pupils enrolled in the center area learning centers and alternative learning programs must 
68.25 	be made according to section 127A.47, subdivision 7.  
68.26 		Subd. 3.Special education revenue. Payment of special education revenue for 
68.27 	nonresident pupils enrolled in the center state-approved alternative program must be made 
68.28 	according to section 125A.15 127A.47, subdivision 7.  

68.29 	Sec. 44. Minnesota Statutes 2008, section 123B.03, subdivision 1, is amended to read:
68.30 		Subdivision 1.Background check required. (a) A school hiring authority shall 
68.31 	request a criminal history background check from the superintendent of the Bureau of 
68.32 	Criminal Apprehension on all individuals who are offered employment in a school and 
68.33 	on all individuals, except enrolled student volunteers, who are offered the opportunity to 
68.34 	provide athletic coaching services or other extracurricular academic coaching services 
69.1 	to a school, regardless of whether any compensation is paid. In order for an individual 
69.2 	to be eligible for employment or to provide the services, the individual must provide an 
69.3 	executed criminal history consent form and a money order or check payable to either the 
69.4 	Bureau of Criminal Apprehension or the school hiring authority, at the discretion of the 
69.5 	school hiring authority, in an amount equal to the actual cost to the Bureau of Criminal 
69.6 	Apprehension and the school district of conducting the criminal history background 
69.7 	check. A school hiring authority deciding to receive payment may, at its discretion, accept 
69.8 	payment in the form of a negotiable instrument other than a money order or check and 
69.9 	shall pay the superintendent of the Bureau of Criminal Apprehension directly to conduct 
69.10 	the background check. The superintendent of the Bureau of Criminal Apprehension shall 
69.11 	conduct the background check by retrieving criminal history data maintained in the 
69.12 	criminal justice information system computers. A school hiring authority, at its discretion, 
69.13 	may decide not to request a criminal history background check on an individual who holds 
69.14 	an initial entrance license issued by the State Board of Teaching or the commissioner of 
69.15 	education within the 12 months preceding an offer of employment.
69.16 	(b) A school hiring authority may use the results of a criminal background check 
69.17 	conducted at the request of another school hiring authority if:
69.18 	(1) the results of the criminal background check are on file with the other school 
69.19 	hiring authority or otherwise accessible;
69.20 	(2) the other school hiring authority conducted a criminal background check within 
69.21 	the previous 12 months;
69.22 	(3) the individual who is the subject of the criminal background check executes a 
69.23 	written consent form giving a school hiring authority access to the results of the check; and
69.24 	(4) there is no reason to believe that the individual has committed an act subsequent 
69.25 	to the check that would disqualify the individual for employment.
69.26 	(c) A school hiring authority may, at its discretion, request a criminal history 
69.27 	background check from the superintendent of the Bureau of Criminal Apprehension on 
69.28 	any individual who seeks to enter a school or its grounds for the purpose of serving as a 
69.29 	school volunteer or working as an independent contractor or student employee. In order 
69.30 	for an individual to enter a school or its grounds under this paragraph when the school 
69.31 	hiring authority decides to request a criminal history background check on the individual, 
69.32 	the individual first must provide an executed criminal history consent form and a money 
69.33 	order, check, or other negotiable instrument payable to the school district in an amount 
69.34 	equal to the actual cost to the Bureau of Criminal Apprehension and the school district 
69.35 	of conducting the criminal history background check. Notwithstanding section 299C.62, 
69.36 	subdivision 1, the cost of the criminal history background check under this paragraph is 
70.1 	the responsibility of the individual. A school hiring authority may decide to pay the costs 
70.2 	of conducting a background check under this paragraph. If the school hiring authority pays 
70.3 	the costs, the individual who is the subject of the background check need not pay for it.
70.4 	(d) For all nonstate residents who are offered employment in a school, a school 
70.5 	hiring authority shall request a criminal history background check on such individuals 
70.6 	from the superintendent of the Bureau of Criminal Apprehension and from the government 
70.7 	agency performing the same function in the resident state or, if no government entity 
70.8 	performs the same function in the resident state, from the Federal Bureau of Investigation. 
70.9 	Such individuals must provide an executed criminal history consent form and a money 
70.10 	order, check, or other negotiable instrument payable to the school hiring authority in an 
70.11 	amount equal to the actual cost to the government agencies and the school district of 
70.12 	conducting the criminal history background check. Notwithstanding section 299C.62, 
70.13 	subdivision 1, the cost of the criminal history background check under this paragraph is 
70.14 	the responsibility of the individual.
70.15 	(e) At the beginning of each school year or when a student enrolls, a school hiring 
70.16 	authority must notify parents and guardians about the school hiring authority's policy 
70.17 	requiring a criminal history background check on employees and other individuals who 
70.18 	provide services to the school, and identify those positions subject to a background check 
70.19 	and the extent of the hiring authority's discretion in requiring a background check. The 
70.20 	school hiring authority may include the notice in the student handbook, a school policy 
70.21 	guide, or other similar communication. Nothing in this paragraph affects a school hiring 
70.22 	authority's ability to request a criminal history background check on an individual under 
70.23 	paragraph (c).

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

70.25 	Sec. 45. Minnesota Statutes 2008, section 123B.51, is amended by adding a 
70.26 	subdivision to read:
70.27 		Subd. 5a.Temporary closing. A school district that proposes to temporarily close a 
70.28 	schoolhouse or that intends to lease the facility to another entity for use as a schoolhouse 
70.29 	for three or fewer years is not subject to subdivision 5 if the school board holds a public 
70.30 	meeting and allows public comment on the schoolhouse's future.

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

70.32 	Sec. 46. Minnesota Statutes 2008, section 124D.095, subdivision 3, is amended to read:
71.1 		Subd. 3.Authorization; notice; limitations on enrollment. (a) A student may 
71.2 	apply for full-time enrollment in an approved online learning program under section 
71.3 	124D.03, 124D.08 or 124D.10, or for supplemental online learning. Notwithstanding 
71.4 	sections 124D.03, 124D.08, and 124D.10, procedures for enrolling in supplemental online 
71.5 	learning shall be as provided in this subdivision. A student age 17 or younger must 
71.6 	have the written consent of a parent or guardian to apply. No school district or charter 
71.7 	school may prohibit a student from applying to enroll in online learning. In order that a 
71.8 	student may enroll in online learning, the student and the student's parents must submit an 
71.9 	application to the online learning provider and identify the reason for enrolling in online 
71.10 	learning. The online learning provider that accepts a student under this section must within 
71.11 	ten days notify the student and the enrolling district in writing if the enrolling district is 
71.12 	not the online learning provider. The student and family must notify the online learning 
71.13 	provider of their intent to enroll in online learning within ten days of acceptance, at which 
71.14 	time the student and parent must sign a statement of assurance that they have reviewed the 
71.15 	online course or program and understand the expectations of online learning enrollment. 
71.16 	The online learning provider must notify the enrolling district of the student's enrollment
71.17 	application to enroll in online learning in writing on a form provided by the department.
71.18 	(b) Supplemental online learning notification to the enrolling district upon student 
71.19 	enrollment in application to the online learning program provider will include the 
71.20 	courses or program, credits to be awarded, and the start date of online enrollment, 
71.21 	and confirmation that the courses will meet the student's graduation plan. An online 
71.22 	learning provider must make available to the enrolling district the course syllabus in a 
71.23 	format established by the commissioner that identifies the state standards met by the 
71.24 	course, content outline, assessment requirements, expectations for actual teacher contact 
71.25 	time, other student-to-teacher communication, and academic support for supplemental 
71.26 	online courses taken by students in the enrolling district. Within 15 days after the 
71.27 	online learning provider makes information in this paragraph available to the enrolling 
71.28 	district, the enrolling district must either confirm or deny to the online provider that 
71.29 	the student, parent or guardian, and enrolling district have agreed the courses meet the 
71.30 	enrolling district's graduation requirements. An online learning course or program that 
71.31 	meets or exceeds a graduation standard or grade progression requirements at the enrolling 
71.32 	district as demonstrated on the online provider's syllabus must be considered to meet the 
71.33 	corresponding graduation requirements of the student in the enrolling district. A student 
71.34 	may enroll in supplemental online learning courses up to the midpoint of the enrolling 
71.35 	district's term. The enrolling district may waive this requirement for special circumstances 
71.36 	and upon acceptance by the online provider.
72.1 	 (c) An online learning provider must notify the commissioner that it is delivering 
72.2 	online learning and report the number of online learning students it is accepting and the 
72.3 	online learning courses and programs it is delivering.
72.4 	 (d) An online learning provider may limit enrollment if the provider's school board 
72.5 	or board of directors adopts by resolution specific standards for accepting and rejecting 
72.6 	students' applications.
72.7 	 (e) An enrolling district may reduce an online learning student's regular classroom 
72.8 	instructional membership in proportion to the student's membership in online learning 
72.9 	courses.
72.10 	(f) The online provider must report or make available individual student progress 
72.11 	and credit accumulation to the student, parent or guardian, and enrolling district in a 
72.12 	manner specified by the commissioner unless another manner is agreed upon by the 
72.13 	enrolling district and the online provider and submitted to the commissioner. The enrolling 
72.14 	district must designate a contact person to assist in the facilitation and monitoring of 
72.15 	student progress and credit accumulation towards graduation status. 

72.16 	Sec. 47. Minnesota Statutes 2008, section 124D.095, subdivision 4, is amended to read:
72.17 		Subd. 4.Online learning parameters. (a) An online learning student must receive 
72.18 	academic credit for completing the requirements of an online learning course or program. 
72.19 	Secondary credits granted to an online learning student must be counted toward the 
72.20 	graduation and credit requirements of the enrolling district. An online learning provider 
72.21 	must make available to the enrolling district the course syllabus, standard alignment, 
72.22 	content outline, assessment requirements, and contact information for supplemental online 
72.23 	courses taken by students in the enrolling district. The enrolling district must apply the 
72.24 	same graduation requirements to all students, including online learning students, and 
72.25 	must continue to provide nonacademic services to online learning students. If a student 
72.26 	completes an online learning course or program that meets or exceeds a graduation 
72.27 	standard or grade progression requirement at the enrolling district, that standard or 
72.28 	requirement is met. The enrolling district must use the same criteria for accepting online 
72.29 	learning credits or courses as it does for accepting credits or courses for transfer students 
72.30 	under section 124D.03, subdivision 9. The enrolling district may reduce the course 
72.31 	schedule of an online learning student in proportion to the number of online learning 
72.32 	courses the student takes from an online learning provider that is not the enrolling district.
72.33 	(b) An online learning student may:
72.34 	(1) enroll in supplemental online learning courses during a single school year to a 
72.35 	maximum of 50 percent of the student's full schedule of courses per term. A student may 
73.1 	exceed the supplemental online learning registration limit if the enrolling district grants 
73.2 	permission for supplemental online learning enrollment above the limit, or if an agreement 
73.3 	is made between the enrolling district and the online learning provider for instructional 
73.4 	services;
73.5 	(2) complete course work at a grade level that is different from the student's current 
73.6 	grade level; and
73.7 	(3) enroll in additional courses with the online learning provider under a separate 
73.8 	agreement that includes terms for payment of any tuition or course fees.
73.9 	(c) An online learning student has the same access to the computer hardware and 
73.10 	education software available in a school as all other students in the enrolling district. An 
73.11 	online learning provider must assist an online learning student whose family qualifies 
73.12 	for the education tax credit under section 290.0674 to acquire computer hardware and 
73.13 	educational software for online learning purposes.
73.14 	(d) An enrolling district may offer online learning to its enrolled students. Such 
73.15 	online learning does not generate online learning funds under this section. An enrolling 
73.16 	district that offers online learning only to its enrolled students is not subject to the 
73.17 	reporting requirements or review criteria under subdivision 7, unless the enrolling district 
73.18 	is a full-time online provider. A teacher with a Minnesota license must assemble and 
73.19 	deliver instruction to enrolled students receiving online learning from an enrolling district 
73.20 	. The delivery of instruction occurs when the student interacts with the computer or the 
73.21 	teacher and receives ongoing assistance and assessment of learning. The instruction may 
73.22 	include curriculum developed by persons other than a teacher with a Minnesota license.
73.23 	(e) AnBoth full-time and supplemental online learning provider that is not the 
73.24 	enrolling district is providers are subject to the reporting requirements and review criteria 
73.25 	under subdivision 7. A teacher with a Minnesota license must assemble and deliver 
73.26 	instruction to online learning students. The delivery of instruction occurs when the student 
73.27 	interacts with the computer or the teacher and receives ongoing assistance and assessment 
73.28 	of learning. The instruction may include curriculum developed by persons other than a 
73.29 	teacher with a Minnesota license. Unless the commissioner grants a waiver, a teacher 
73.30 	providing online learning instruction must not instruct more than 40 students in any one 
73.31 	online learning course or program.
73.32 	(f) To enroll in more than 50 percent of the student's full schedule of courses per term 
73.33 	in online learning, the student must qualify to exceed the supplemental online learning 
73.34 	registration limit under paragraph (b) or apply for enrollment to an approved full-time 
73.35 	online learning program following appropriate procedures in subdivision 3, paragraph (a). 
74.1 	Full-time online learning students may enroll in classes at a local school per contract for 
74.2 	instructional services between the online learning provider and the school district.

74.3 	Sec. 48. Minnesota Statutes 2008, section 124D.095, subdivision 7, is amended to read:
74.4 		Subd. 7.Department of Education. (a) The department must review and 
74.5 	certify online learning providers. The online learning courses and programs must be 
74.6 	rigorous, aligned with state academic standards, and contribute to grade progression 
74.7 	in a single subject. Online learning providers must demonstrate to the commissioner 
74.8 	that online learning courses have equivalent standards or instruction, curriculum, and 
74.9 	assessment requirements as other courses offered to enrolled students. The online 
74.10 	learning provider must also demonstrate expectations for actual teacher contact time 
74.11 	or other student-to-teacher communication The online provider must provide written 
74.12 	assurance that all courses meet state academic standards, and that the online learning 
74.13 	curriculum, instruction and assessment, expectations for actual teacher contact time or 
74.14 	other student-to-teacher communication, and academic support meet nationally recognized 
74.15 	professional standards and are demonstrated as such in a syllabus provided according to 
74.16 	the commissioner's requirements. Once an online learning provider is approved under 
74.17 	this paragraph, all of its online learning course offerings are eligible for payment under 
74.18 	this section unless a course is successfully challenged by an enrolling district or the 
74.19 	department under paragraph (b).
74.20 	(b) An enrolling district may challenge the validity of a course offered by an online 
74.21 	learning provider. The department must review such challenges based on the certification 
74.22 	procedures under paragraph (a). The department may initiate its own review of the validity 
74.23 	of an online learning course offered by an online learning provider.
74.24 	(c) The department may collect a fee not to exceed $250 for certifying online 
74.25 	learning providers or $50 per course for reviewing a challenge by an enrolling district.
74.26 	(d) The department must develop, publish, and maintain a list of approved online 
74.27 	learning providers and online learning courses and programs that it has reviewed and 
74.28 	certified.

74.29 	Sec. 49. Minnesota Statutes 2008, section 124D.095, subdivision 10, is amended to 
74.30 	read:
74.31 		Subd. 10.Online Learning Advisory Council. (a) An Online Learning Advisory 
74.32 	Council is established under section 15.059, except that. The term for each council 
74.33 	member shall be three years. The advisory council is composed of 12 members from 
74.34 	throughout the state who have demonstrated experience with or interest in online learning. 
75.1 	The members of the council shall be appointed by the commissioner. The advisory council 
75.2 	shall bring to the attention of the commissioner any matters related to online learning and 
75.3 	provide input to the department in matters related, but not restricted, to:
75.4 	(1) quality assurance;
75.5 	(2) teacher qualifications;
75.6 	(3) program approval;
75.7 	(4) special education;
75.8 	(5) attendance;
75.9 	(6) program design and requirements; and
75.10 	(7) fair and equal access to programs.
75.11 	(b) The Online Learning Advisory Council under this subdivision expires June 
75.12 	30, 2008 2013.

75.13 	EFFECTIVE DATE. Paragraph (b) is effective retroactively to June 30, 2008.

75.14 	Sec. 50. Minnesota Statutes 2008, section 124D.10, subdivision 1, is amended to read:
75.15 		Subdivision 1.Purposes. (a) The purpose of this section is to:
75.16 	(1) improve pupil learning and student achievement;
75.17 	(2) increase learning opportunities for pupils;
75.18 	(3) encourage the use of different and innovative teaching methods;
75.19 	(4) require the measurement of measure learning outcomes and create different and 
75.20 	innovative forms of measuring outcomes;
75.21 	(5) establish new forms of accountability for schools; or and
75.22 	(6) create new professional opportunities for teachers, including the opportunity to 
75.23 	be responsible for the learning program at the school site.
75.24 	(b) This section does not provide a means to keep open or replace a school that 
75.25 	otherwise would be closed. Applicants in these circumstances bear the burden of proving 
75.26 	that conversion to a charter school fulfills a purpose the purposes specified in this 
75.27 	subdivision, independent of the school's closing.

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

75.29 	Sec. 51. Minnesota Statutes 2008, section 124D.10, subdivision 2a, is amended to read:
75.30 		Subd. 2a.Charter School Advisory Council. (a) A Charter School Advisory 
75.31 	Council is established under section 15.059 except that. The term for each council 
75.32 	member shall be three years. The advisory council is composed of seven nine  members
75.33 	from throughout the state who have demonstrated experience with or interest in charter 
76.1 	schools. The members of the council shall be appointed by the commissioner. The 
76.2 	advisory council shall bring to the attention of the commissioner any matters related to 
76.3 	charter schools that the council deems necessary and shall:The members may include 
76.4 	charter school sponsors, charter school personnel, public K-12 teachers, school board 
76.5 	members, parents of currently enrolled K-12 public school students, and school district 
76.6 	representatives. The commissioner shall appoint the council members. The commissioner 
76.7 	shall consider geographic balance when appointing council members.
76.8 	(1) encourage school boards to make full use of charter school opportunities;
76.9 	(2) encourage the creation of innovative schools;
76.10 	(3) provide leadership and support for charter school sponsors to increase the 
76.11 	innovation in and the effectiveness, accountability, and fiscal soundness of charter schools;
76.12 	(4) serve an ombudsman function in facilitating the operations of new and existing 
76.13 	charter schools;
76.14 	(5) promote timely financial management training for newly elected members of 
76.15 	a charter school board of directors and ongoing training for other members of a charter 
76.16 	school board of directors; and
76.17 	(6) facilitate compliance with auditing and other reporting requirements. The 
76.18 	advisory council shall refer all its proposals to the commissioner who shall provide time 
76.19 	for reports from the council.
76.20 	The advisory council shall advise and make recommendations to the commissioner 
76.21 	on sponsoring charter schools and other matters, including: 
76.22 	(1) approving, reviewing, and disciplining sponsors, consistent with this section; 
76.23 	(2) supporting charter school innovation, effectiveness, accountability, and fiscal 
76.24 	soundness; 
76.25 	(3) providing a management training program for charter school administrators 
76.26 	and board members; 
76.27 	(4) complying with auditing and other financial reporting requirements; 
76.28 	(5) reviewing charter school affidavits and charter school grade and program 
76.29 	expansion applications; and 
76.30 	(6) identifying models to improve communication, cooperation, and the exchange of 
76.31 	ideas between and among public charter and district schools.
76.32 	(b)  The advisory council shall recommend to the commissioner and the legislature, 
76.33 	by December 1, 2009, an organizational model to give state-level leadership to new school 
76.34 	planning, development, start-up, and successful ongoing operation in both the district and 
76.35 	chartered sectors of public education. The council, as part of its recommendation, must 
76.36 	suggest legislation necessary to implement this new state-level organization model. 
77.1 	(c) The Charter School Advisory Council under this subdivision expires June 30, 
77.2 	2007 2015.

77.3 	EFFECTIVE DATE. Paragraph (c) is effective retroactively to June 30, 2007. 

77.4 	Sec. 52. Minnesota Statutes 2008, section 124D.10, subdivision 3, is amended to read:
77.5 		Subd. 3.Sponsor. (a) For the purposes of this section:
77.6 	(1) "application" means the charter school business and operational plan a school 
77.7 	developer submits to a sponsor for approval that documents the school developer's 
77.8 	mission statement, school purposes, program design, financial plan, governance and 
77.9 	management structure, and background and experience, plus any other information the 
77.10 	sponsor requests. The application also shall include a "statement of assurance" of legal 
77.11 	compliance as prescribed by the commissioner; and
77.12 	(2) "affidavit" means a written statement the sponsor submits to the commissioner 
77.13 	for approval under subdivision 4 attesting to its review and approval of a school charter. 
77.14 	(b) The following organizations may sponsor one or more charter schools: 
77.15 	(1) a school board; intermediate school district school board; education district 
77.16 	organized under sections 123A.15 to 123A.19; 
77.17 	(2) charitable organization under section 501(c)(3) of the Internal Revenue Code 
77.18 	of 1986, excluding a nonpublic sectarian or religious institution, any person other than a 
77.19 	natural person who directly or indirectly, through one or more intermediaries, controls, 
77.20 	is controlled by, or is under common control with the nonpublic sectarian or religious 
77.21 	institution, and any other charitable organization under this clause that in the federal IRS 
77.22 	Form 1023, Part IV, describes activities indicating a religious purpose,  that:
77.23 	(i) is a member of the Minnesota Council of Nonprofits or the Minnesota Council on 
77.24 	Foundations,;
77.25 	(ii) is  registered with the attorney general's office, and; 
77.26 	(iii)  reports an end-of-year ongoing fund balance of at least $2,000,000 for at least 
77.27 	four consecutive years; and 
77.28 	(iv) is incorporated in the state of Minnesota;
77.29 	(3) a Minnesota private college, notwithstanding clause (2),  that grants two- or 
77.30 	four-year degrees and is registered with the Minnesota Office of Higher Education under 
77.31 	chapter 136A; community college, state university, or technical college, governed by the 
77.32 	Board of Trustees of the Minnesota State Colleges and Universities; or the University of 
77.33 	Minnesota may sponsor one or more charter schools.;
77.34 	(b) (4) a nonprofit corporation subject to chapter 317A, described in section 
77.35 	317A.905, and exempt from federal income tax under section sections 501(c)(3) or 
78.1 	 501(c)(6) of the Internal Revenue Code of 1986, may sponsor one or more charter schools 
78.2 	if the charter school has operated for at least three years under a different sponsor or an 
78.3 	organization that has previously sponsored schools under this subdivision,  and if the 
78.4 	nonprofit corporation has existed been incorporated in the state of Minnesota  for at least 
78.5 	25 20  years; or
78.6 	(5) no more than two single-purpose sponsors that are charitable organizations 
78.7 	formed under section 501(c)(3) of the Internal Revenue Code of 1986 and incorporated 
78.8 	in the state of Minnesota whose sole purpose is to sponsor charter schools. Eligible 
78.9 	organizations interested in being approved as a sponsor under this paragraph must submit 
78.10 	a proposal to the commissioner that includes the provisions of paragraph (c) and a 
78.11 	five-year financial plan. 
78.12 	(c) An eligible sponsor under this subdivision must apply to the commissioner 
78.13 	for approval as a sponsor before submitting an affidavit to the commissioner to sponsor 
78.14 	a charter school. The application for approval as a charter school sponsor must 
78.15 	demonstrate the applicant's ability to implement the procedures and satisfy the criteria 
78.16 	for sponsoring a charter school under this section. The commissioner must approve or 
78.17 	disapprove an application within 60 business days of the application deadline. If the 
78.18 	commissioner disapproves the application, the commissioner must notify the applicant of 
78.19 	the deficiencies and the applicant then has 20 business days to address the deficiencies to 
78.20 	the commissioner's satisfaction. Failing to address the deficiencies to the commissioner's 
78.21 	satisfaction makes an applicant ineligible to be a sponsor. The affidavit to be submitted to 
78.22 	and evaluated by the commissioner must include at least the following:
78.23 	(1) how sponsoring schools is a way for the organization to carry out its mission; 
78.24 	(2) a description of the capacity of the organization to serve as a sponsor, including 
78.25 	the personnel who will perform the sponsoring duties, their qualifications, the amount of 
78.26 	time they will be assigned to this responsibility, and the financial resources allocated 
78.27 	by the organization to this responsibility; 
78.28 	(3) a description of the application and review process the sponsor will use to make 
78.29 	decisions regarding the granting of charters, which will include at least the following: 
78.30 	(i) how the statutory purposes defined in subdivision 1 are addressed;
78.31 	(ii) the mission, goals, program model, and student performance expectations;
78.32 	(iii) an evaluation plan for the school that includes criteria for evaluating educational, 
78.33 	organizational, and fiscal plans;
78.34 	(iv) the school's governance plan;
78.35 	(v) the financial management plan; and
78.36 	(vi) the administration and operations plan;
79.1 	(4) a description of the type of contract it will arrange with the schools it sponsors 
79.2 	that meets the provisions of subdivision 6 and defines the rights and responsibilities of the 
79.3 	charter school for governing its educational program, controlling its funds, and making 
79.4 	school management decisions; 
79.5 	(5) the process to be used for providing ongoing oversight of the school consistent 
79.6 	with the contract expectations specified in clause (4) that assures that the schools sponsored 
79.7 	are complying with both the provisions of applicable law and rules, and with the contract;
79.8 	(6) the process for making decisions regarding the renewal or termination of 
79.9 	the school's charter based on evidence that demonstrates the academic, organizational, 
79.10 	and financial competency of the school, including its success in increasing student 
79.11 	achievement and meeting the goals of the charter school agreement; and 
79.12 	(7) an assurance specifying that the organization is committed to serving as a 
79.13 	sponsor for the full five-year term.
79.14 	(d) The sponsor must participate in department-approved training.
79.15 	(e) A sponsor that chartered a school before August 1, 2009, must apply by June 
79.16 	30, 2011, to the commissioner for approval, under paragraph (c), to continue as a sponsor 
79.17 	under this section. For purposes of this paragraph, a sponsor that fails to submit a timely 
79.18 	application is ineligible to charter a school. 
79.19 	(f) The commissioner shall review a sponsor's performance every five years 
79.20 	in a manner and form determined by the commissioner and may review a sponsor's 
79.21 	performance more frequently at the commissioner's own initiative or at the request of a 
79.22 	charter school operator, charter school board member, or other interested party. The 
79.23 	commissioner, after completing the review, shall transmit a report with findings to the 
79.24 	sponsor. If, consistent with this section, the commissioner finds that a sponsor has not 
79.25 	fulfilled the requirements of this section, the commissioner may subject the sponsor to 
79.26 	corrective action, which may include terminating the contract with the charter school 
79.27 	board of directors of a school it sponsored. The commissioner must notify the sponsor in 
79.28 	writing of any findings that may subject the sponsor to corrective action and the sponsor 
79.29 	then has 15 business days to request an informal hearing before the commissioner takes 
79.30 	corrective action. 
79.31 	(g) The commissioner may at any time take corrective action against a sponsor, 
79.32 	including terminating a sponsor's ability to charter a school for:
79.33 	(1) failing to demonstrate the criteria under paragraph (c) under which the 
79.34 	commissioner approved the sponsor; 
79.35 	(2) violating a term of the chartering contract between the sponsor and the charter 
79.36 	school board of directors; or 
80.1 	(3) violations by the charter school that the sponsor authorizes and that the board of 
80.2 	directors fails to correct. 

80.3 	EFFECTIVE DATE. This section is effective August 1, 2009.

80.4 	Sec. 53. Minnesota Statutes 2008, section 124D.10, subdivision 4, is amended to read:
80.5 		Subd. 4.Formation of school. (a) A sponsor may authorize one or more licensed 
80.6 	teachers under section 122A.18, subdivision 1, to operate a charter school subject to 
80.7 	approval by the commissioner. A board must vote on charter school application for 
80.8 	sponsorship no later than 90 days after receiving the application. The school must be 
80.9 	organized and operated as a cooperative under chapter 308A or nonprofit corporation 
80.10 	under chapter 317A and the provisions under the applicable chapter shall apply to the 
80.11 	school except as provided in this section. Notwithstanding sections 465.717 and 465.719, 
80.12 	a school district may create a corporation for the purpose of creating a charter school.
80.13 	(b) Before the operators may form establish and operate a school, the sponsor must 
80.14 	file an affidavit with the commissioner stating its intent to authorize a charter school. A 
80.15 	sponsor must file a separate affidavit for each school it intends to charter. The affidavit 
80.16 	must state the terms and conditions under which the sponsor would authorize a charter 
80.17 	school and how the sponsor intends to oversee the fiscal and student performance of 
80.18 	the charter school and to comply with the terms of the written contract between the 
80.19 	sponsor and the charter school board of directors under subdivision 6. The commissioner 
80.20 	must approve or disapprove the sponsor's proposed authorization affidavit within 90 60 
80.21 	business days of receipt of the affidavit.  If the commissioner disapproves the affidavit, the 
80.22 	commissioner shall notify the sponsor of the deficiencies in the affidavit and the sponsor 
80.23 	then has 20 business days to address the deficiencies. If the sponsor does not address the 
80.24 	deficiencies to the commissioner's satisfaction, the commissioner's disapproval is final. 
80.25 	 Failure to obtain commissioner approval precludes a sponsor from authorizing the charter
80.26 	chartering the  school that was is the subject of the this affidavit.
80.27 	(c) The sponsor may prevent an approved charter school from opening for operation 
80.28 	if, among other grounds, the charter school violates this section or does not meet the 
80.29 	ready-to-open standards that are part of the sponsor's oversight and evaluation process or 
80.30 	are stipulated in the charter school contract.
80.31 	(d) The operators authorized to organize and operate a school, before entering into 
80.32 	a contract or other agreement for professional or other services, goods, or facilities, 
80.33 	must incorporate as a cooperative under chapter 308A or as a nonprofit corporation 
80.34 	under chapter 317A and must establish a board of directors composed of at least five 
80.35 	members who are not related parties until a timely election for members of the ongoing
81.1 	charter school board of directors is held according to the school's articles and bylaws
81.2 	under paragraph (f). A charter school board of directors must be composed of at least 
81.3 	five members. Any Staff members who are employed at the school, including teachers 
81.4 	providing instruction under a contract with a cooperative, and all parents or legal guardians
81.5 	of children enrolled in the school may participate in the election for are the voters eligible 
81.6 	to elect the members of the school's board of directors. Licensed teachers employed at the 
81.7 	school, including teachers providing instruction under a contract with a cooperative, must 
81.8 	be a majority of the members of the board of directors before the school completes its 
81.9 	third year of operation, unless the commissioner waives the requirement for a majority 
81.10 	of licensed teachers on the board. A charter school must notify eligible voters of the 
81.11 	school board election dates at least 30 days before the election.  Board of director meetings 
81.12 	must comply with chapter 13D.
81.13 	(e) Every charter school board member shall attend department-approved training 
81.14 	on board governance, the board's role and responsibilities, employment policies and 
81.15 	practices, and financial management standards and practices. A board member who does 
81.16 	not begin the required training within three months of being seated and complete the 
81.17 	required training within 12 months of being seated on the board is ineligible to continue to 
81.18 	serve as a board member. 
81.19 	(f) The ongoing board must be elected before the school completes its third year 
81.20 	of operation. The charter school board of directors shall be composed of at least five 
81.21 	members who are not related parties and shall include at least a licensed teacher employed 
81.22 	at the school, a charter school parent or legal guardian, and an interested community 
81.23 	member. The chief financial officer and the chief administrator are nonvoting board 
81.24 	members. Board bylaws shall outline the process and procedures for changing the board's 
81.25 	governance model. A board may change its governance model within the requirements of 
81.26 	board membership in this section and only with approval from the sponsor and a voting 
81.27 	majority of the board of directors and the licensed teachers employed at the school. 
81.28 	(d) (g) The granting or renewal of a charter school by a sponsoring entitysponsor 
81.29 	must not be conditioned upon the bargaining unit status of the employees of the school.
81.30 	(h) The granting or renewal of a charter school by a sponsor must not be contingent 
81.31 	on a requirement to contract, lease, or purchase services from the sponsor. A party to 
81.32 	such an arrangement between a sponsor and a school must disclose the arrangement to 
81.33 	the commissioner. The commissioner may terminate a charter school contract under this 
81.34 	section if the commissioner determines that the arrangement is illegal or in violation 
81.35 	of this section.
82.1 	(e) (i) A sponsor may authorize the operators board of directors of a charter school 
82.2 	to expand the operation of the charter school to additional sites or to add additional grades 
82.3 	at the school beyond those described in the sponsor's application original affidavit as 
82.4 	approved by the commissioner only after submitting a supplemental application affidavit 
82.5 	for approval to the commissioner in a form and manner prescribed by the commissioner. 
82.6 	The supplemental application affidavit must provide evidence that:
82.7 	(1) the expansion of proposed by the charter school is supported by need and 
82.8 	projected enrollment;
82.9 	(2) the charter school expansion is warranted, at a minimum, by longitudinal data 
82.10 	demonstrating sustained academic performance and growth on statewide assessments 
82.11 	under chapter 120B; 
82.12 	 (3) the charter school is fiscally sound and has the financial capacity to implement 
82.13 	the proposed expansion;
82.14 	(3) (4) the sponsor supports the charter school has the potential physical capacity to 
82.15 	implement the proposed expansion; and
82.16 	(4) the building of the additional site meets all health and safety requirements to 
82.17 	be eligible for lease aid (5) the sponsor finds that the charter school has the management 
82.18 	capacity to implement the proposed expansion.
82.19 	(f) The commissioner annually must provide timely financial management training 
82.20 	to newly elected members of a charter school board of directors and ongoing training to 
82.21 	other members of a charter school board of directors. Training must address ways to:
82.22 	(1) proactively assess opportunities for a charter school to maximize all available 
82.23 	revenue sources;
82.24 	(2) establish and maintain complete, auditable records for the charter school;
82.25 	(3) establish proper filing techniques;
82.26 	(4) document formal actions of the charter school, including meetings of the charter 
82.27 	school board of directors;
82.28 	(5) properly manage and retain charter school and student records;
82.29 	(6) comply with state and federal payroll record-keeping requirements; and
82.30 	(7) address other similar factors that facilitate establishing and maintaining complete 
82.31 	records on the charter school's operations.
82.32 	(j) The commissioner shall have 30 business days to review and comment on the 
82.33 	supplemental affidavit. The commissioner shall notify the sponsor of any deficiencies in 
82.34 	the supplemental affidavit and the sponsor then has 30 business days to address, to the 
82.35 	commissioner's satisfaction, any deficiencies in the supplemental affidavit. The school 
83.1 	shall not expand grades or add sites until the commissioner has approved the supplemental 
83.2 	affidavit. The commissioner's approval or disapproval of a supplemental affidavit is final. 
83.3 	(k) A new charter school must not open in a newly consolidated district under 
83.4 	section 123A.48 or in a district dissolved under section 123A.46 for at least 36 months 
83.5 	after the date of consolidation or dissolution, except under subdivision 5 in this section or 
83.6 	unless the school board of the school district in which the charter school would be located 
83.7 	gives the sponsor written approval to do so.
83.8 	(l) A new charter school must not open within a one-mile radius of a public school 
83.9 	that has closed under section 123B.51 for at least 36 months after the date the school 
83.10 	closed unless the commissioner determines that the new charter school applicant does not 
83.11 	intend to reestablish the closed public school as a charter school, except under subdivision 
83.12 	5 in this section or unless the school board of the school district in which the charter 
83.13 	school would be located gives the sponsor written approval to do so. 
83.14 	(m) A sponsor may apply to the commissioner for a waiver from paragraph (k) or 
83.15 	paragraph (l). The commissioner must use the criteria in this section to approve or deny 
83.16 	the waiver within 45 business days. The commissioner's decision is final.

83.17 	EFFECTIVE DATE. This section is effective August 1, 2009. 

83.18 	Sec. 54. Minnesota Statutes 2008, section 124D.10, subdivision 4a, is amended to read:
83.19 		Subd. 4a.Conflict of interest. (a) A member of a charter school board of directors
83.20 	An individual is prohibited from serving as a member of the charter school board of 
83.21 	directors or as if the individual, an immediate family member, or the individual's partner is
83.22 	an owner, employee or agent of or a contractor with a for-profit or nonprofit entity with 
83.23 	whom the charter school contracts, directly or indirectly, for professional services, goods, 
83.24 	or facilities. A violation of this prohibition renders a contract voidable at the option of 
83.25 	the commissioner or the charter school board of directors. A member of a charter school 
83.26 	board of directors who violates this prohibition shall be is individually liable to the charter 
83.27 	school for any damage caused by the violation.
83.28 	(b) No member of the board of directors, employee, officer, or agent of a charter 
83.29 	school shall participate in selecting, awarding, or administering a contract if a conflict 
83.30 	of interest exists. A conflict exists when:
83.31 	(1) the board member, employee, officer, or agent;
83.32 	(2) the immediate family of the board member, employee, officer, or agent;
83.33 	(3) the partner of the board member, employee, officer, or agent; or
84.1 	(4) an organization that employs, or is about to employ any individual in clauses 
84.2 	(1) to (3), has a financial or other interest in the entity with which the charter school is 
84.3 	contracting. A violation of this prohibition renders the contract void.
84.4 	(c) Any employee, agent, or board member of the sponsor who participates in 
84.5 	the initial review, approval, ongoing oversight, evaluation, or the charter renewal or 
84.6 	nonrenewal process or decision is ineligible to serve on the board of directors of a school 
84.7 	chartered by that sponsor.
84.8 	 (d) An individual may serve as a member of the board of directors if no conflict of 
84.9 	interest under paragraph (a) exists.
84.10 	(c) A member of a charter school board of directors that serves as a member of the 
84.11 	board of directors or as an employee or agent of or a contractor with a nonprofit entity 
84.12 	with whom the charter school contracts, directly or indirectly, for professional services, 
84.13 	goods, or facilities, must disclose all potential conflicts to the commissioner.
84.14 	(d) (e) The conflict of interest provisions under this subdivision do not apply to 
84.15 	compensation paid to a teacher employed by the charter school who also serves as a 
84.16 	member of the board of directors.
84.17 	(e) (f) The conflict of interest provisions under this subdivision do not apply to a 
84.18 	teacher who provides services to a charter school through a cooperative formed under 
84.19 	chapter 308A when the teacher also serves on the charter school board of directors.

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

84.21 	Sec. 55. Minnesota Statutes 2008, section 124D.10, subdivision 5, is amended to read:
84.22 		Subd. 5.Conversion of existing schools. A board of an independent or special 
84.23 	school district  may convert one or more of its existing schools to charter schools under 
84.24 	this section if 60 percent of the full-time teachers at the school sign a petition seeking 
84.25 	conversion. The conversion must occur at the beginning of an academic year.

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

84.27 	Sec. 56. Minnesota Statutes 2008, section 124D.10, subdivision 6, is amended to read:
84.28 		Subd. 6. Charter  contract. The sponsor's authorization for a charter school must 
84.29 	be in the form of a written contract signed by the sponsor and the board of directors of 
84.30 	the charter school. The contract must be completed within 90 45 business days of the 
84.31 	commissioner's approval of the sponsor's proposed authorization affidavit. The sponsor 
84.32 	shall submit a copy of the signed contract to the commissioner within ten days of its 
85.1 	execution. The contract for a charter school must be in writing and contain at least the 
85.2 	following:
85.3 	(1) a description of a how the program that carries out one or more of the purposes 
85.4 	in subdivision 1;
85.5 	(2) a description of the specific academic and nonacademic outcomes that pupils 
85.6 	are to must achieve under subdivision 10;
85.7 	(3) a statement of admission policies and procedures;
85.8 	(4) a governance, management and administration of plan for the school;
85.9 	(5) signed agreements from charter school board members to comply with all federal 
85.10 	and state laws governing all organizational, programmatic, and financial requirements and 
85.11 	procedures for program and financial audits applicable to charter schools;
85.12 	(6) how the school will comply with subdivisions 8, 13, 16, and 23 the criteria, 
85.13 	processes, and procedures that the sponsor will use for ongoing oversight of operational, 
85.14 	financial, and academic performance;
85.15 	(7) assumption of liability by the charter school the performance evaluation that is a 
85.16 	prerequisite for reviewing a charter school contract under subdivision 15;
85.17 	(8) types and amounts of insurance liability coverage to be obtained by the charter 
85.18 	school;
85.19 	(9) the term of the contract, which may be up to three years for an initial contract, 
85.20 	plus a preoperational planning year and up to five years for a renewed contract if warranted 
85.21 	by the school's academic, financial, and operational performance;
85.22 	(10) if how the board of directors or the operators of the charter school will provide 
85.23 	special instruction and services for children with a disability under sections 125A.03 to 
85.24 	125A.24, and 125A.65,  and a description of the financial parameters within which the 
85.25 	charter school will operate to provide the special instruction and services to children 
85.26 	with a disability; and
85.27 	(11) the process and criteria the sponsor intends to use to monitor and evaluate the 
85.28 	fiscal and student performance of the charter school, consistent with subdivision 15; and 
85.29 	(12) the plan for an orderly closing of the school under chapter 308A or chapter 
85.30 	317A, if the closure is a termination for cause, voluntary termination, or nonrenewal of 
85.31 	the contract that includes establishing the responsibilities of the charter school board of 
85.32 	directors and the sponsor, and notifying the commissioner, sponsor, the school district in 
85.33 	which the charter school is located, and parents of enrolled students about the closure, the 
85.34 	transfer of student records to the students' resident districts, and procedures for closing 
85.35 	financial operations.

85.36 	EFFECTIVE DATE. The section is effective the day following final enactment.

86.1 	Sec. 57. Minnesota Statutes 2008, section 124D.10, subdivision 6a, is amended to read:
86.2 		Subd. 6a.Audit report. (a) The charter school must submit an audit report to the 
86.3 	commissioner and its sponsor by December 31 each year. 
86.4 	(b) The charter school, with the assistance of the auditor conducting the audit, must 
86.5 	include with the report a copy of all charter school agreements for corporate management 
86.6 	services. If the entity that provides the professional services to the charter school is 
86.7 	exempt from taxation under section 501 of the Internal Revenue Code of 1986, that entity 
86.8 	must file with the commissioner by February 15 a copy of the annual return required under 
86.9 	section 6033 of the Internal Revenue Code of 1986. 
86.10 	(c) If the commissioner receives as part of the an audit report a management letter
86.11 	indicating that a material weakness exists in the financial reporting systems of a charter 
86.12 	school, the charter school must submit a written report to the commissioner explaining 
86.13 	how the material weakness will be resolved. 
86.14 	(d) Upon the request of an individual, the charter school must make available in a 
86.15 	timely fashion the minutes of meetings of members, the board of directors, and committees 
86.16 	having any of the authority of the board of directors, and statements showing the financial 
86.17 	result of all operations and transactions affecting income and surplus during the school's 
86.18 	last annual accounting period and a balance sheet containing a summary of its assets and 
86.19 	liabilities as of the closing date of the accounting period.

86.20 	EFFECTIVE DATE. The section is effective the day following final enactment.

86.21 	Sec. 58. Minnesota Statutes 2008, section 124D.10, subdivision 7, is amended to read:
86.22 		Subd. 7.Public status; exemption from statutes and rules. A charter school is a 
86.23 	public school and is part of the state's system of public education. Except as provided in 
86.24 	this section, a charter school is exempt from all statutes and rules applicable to a school, a 
86.25 	board, or a district, although it may elect to comply with one or more provisions of statutes 
86.26 	or rules A charter school is exempt from all statutes and rules applicable to a school, 
86.27 	school board, or school district unless a statute or rule is made specifically applicable to a 
86.28 	charter school or is included in this section.

86.29 	EFFECTIVE DATE. The section is effective the day following final enactment.

86.30 	Sec. 59. Minnesota Statutes 2008, section 124D.10, subdivision 8, is amended to read:
86.31 		Subd. 8.Federal, state, and local requirements. (a) A charter school shall meet all 
86.32 	applicable federal, state, and local health and safety requirements applicable to school 
86.33 	districts.
87.1 	(b) A school must comply with statewide accountability requirements governing 
87.2 	standards and assessments in chapter 120B.
87.3 	(c) A school sponsored by a school board may be located in any district, unless the 
87.4 	school board of the district of the proposed location disapproves by written resolution.
87.5 	(c) (d) A charter school must be nonsectarian in its programs, admission policies, 
87.6 	employment practices, and all other operations. A sponsor may not authorize a charter 
87.7 	school or program that is affiliated with a nonpublic sectarian school or a religious 
87.8 	institution. A charter school student must be released for religious instruction, consistent 
87.9 	with section 120A.22, subdivision 12, clause (3).
87.10 	(d) (e) Charter schools must not be used as a method of providing education or 
87.11 	generating revenue for students who are being home-schooled.
87.12 	(e) (f) The primary focus of a charter school must be to provide a comprehensive 
87.13 	program of instruction for at least one grade or age group from five through 18 years 
87.14 	of age. Instruction may be provided to people younger than five years and older than 
87.15 	18 years of age.
87.16 	(f) (g) A charter school may not charge tuition.
87.17 	(g) (h) A charter school is subject to and must comply with chapter 363A and 
87.18 	section 121A.04. 
87.19 	(h) (i) A charter school is subject to and must comply with the Pupil Fair Dismissal 
87.20 	Act, sections 121A.40 to 121A.56, and the Minnesota Public School Fee Law, sections 
87.21 	123B.34 to 123B.39. 
87.22 	(i) (j) A charter school is subject to the same financial audits, audit procedures, and 
87.23 	audit requirements as a district. Audits must be conducted in compliance with generally 
87.24 	accepted governmental auditing standards, the Federal Single Audit Act, if applicable, 
87.25 	and section 6.65. A charter school is subject to and must comply with sections 15.054; 
87.26 	118A.01; 118A.02; 118A.03; 118A.04; 118A.05; 118A.06; 123B.52, subdivision 5;
87.27 	471.38; 471.391; 471.392; and 471.425; 471.87; 471.88, subdivisions 1, 2, 3, 4, 5, 6, 
87.28 	12, 13, and 15; 471.881; and 471.89. The audit must comply with the requirements of 
87.29 	sections 123B.75 to 123B.83, except to the extent deviations are necessary because of the 
87.30 	program at the school. Deviations must be approved by the commissioner and sponsor. 
87.31 	The Department of Education, state auditor, or legislative auditor or sponsor may conduct 
87.32 	financial, program, or compliance audits. A charter school determined to be in statutory 
87.33 	operating debt under sections 123B.81 to 123B.83 must submit a plan under section 
87.34 	123B.81, subdivision 4. 
87.35 	(j) (k) A charter school is a district for the purposes of tort liability under chapter 466.
88.1 	(k) (l) A charter school must comply with sections 13.32 chapters 13 and 13D; and 
88.2 	sections 120A.22, subdivision 7; 121A.75; and 260B.171, subdivisions 3 and 5. 
88.3 	(l) (m) A charter school is subject to the Pledge of Allegiance requirement under 
88.4 	section 121A.11, subdivision 3. 
88.5 	(n) A charter school offering online courses or programs must comply with section 
88.6 	124D.095.
88.7 	(o) A charter school and charter school board of directors are subject to chapter 181.

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

88.9 	Sec. 60. Minnesota Statutes 2008, section 124D.10, is amended by adding a 
88.10 	subdivision to read:
88.11 		Subd. 8a.Aid reduction. The commissioner must reduce a charter school's state 
88.12 	aid according to section 127A.42, if the charter school board fails to correct a violation 
88.13 	under this section.

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

88.15 	Sec. 61. Minnesota Statutes 2008, section 124D.10, subdivision 9, is amended to read:
88.16 		Subd. 9.Admission requirements. A charter school may limit admission to:
88.17 	(1) pupils within an age group or grade level;
88.18 	(2) people pupils who are eligible to participate in the graduation incentives program 
88.19 	under section 124D.68; or 
88.20 	(3) residents of a specific geographic area where the percentage of the population 
88.21 	of non-Caucasian people of that area is greater than the percentage of the non-Caucasian 
88.22 	population in the congressional district in which the geographic area is located, and as 
88.23 	long as the school reflects the racial and ethnic diversity of the specific area in which the 
88.24 	school is located when the majority of students served by the school are members of 
88.25 	underserved populations in which the school is located when the majority of students 
88.26 	served by the school are members of underserved populations.
88.27 	A charter school shall enroll an eligible pupil who submits a timely application, 
88.28 	unless the number of applications exceeds the capacity of a program, class, grade level, 
88.29 	or building. In this case, pupils must be accepted by lot. If a charter school is the only 
88.30 	school located in a town serving pupils within a particular grade level, then pupils that 
88.31 	are residents of the town must be given preference for enrollment before accepting pupils 
88.32 	by lot. If a pupil lives within two miles of a charter school and the next closest public 
88.33 	school is more than five miles away, the charter school must give those pupils preference 
89.1 	for enrollment before accepting other pupils by lot. The charter school must develop and 
89.2 	publish a lottery policy and process that it must use when accepting pupils by lot.
89.3 	A charter school shall give preference for enrollment to a sibling of an enrolled pupil 
89.4 	and to a foster child of that pupil's parents before accepting other pupils by lot.
89.5 	A charter school may not limit admission to pupils on the basis of intellectual ability, 
89.6 	measures of achievement or aptitude, or athletic ability and may not establish any criteria 
89.7 	or requirements for admission that are inconsistent with this subdivision.
89.8 	The charter school shall not distribute any services or goods of value to students, 
89.9 	parents or guardians as an inducement, term, or condition of enrolling a student in a 
89.10 	charter school.

89.11 	EFFECTIVE DATE. This section is effective the day following final enactment 
89.12 	and applies to the 2010-2011 school year.

89.13 	Sec. 62. Minnesota Statutes 2008, section 124D.10, subdivision 11, is amended to read:
89.14 		Subd. 11.Employment and other operating matters. (a)  A charter school must 
89.15 	employ or contract with necessary teachers, as defined by section 122A.15, subdivision 
89.16 	1, who hold valid licenses to perform the particular service for which they are employed 
89.17 	in the school. The charter school's state aid may be reduced under section 127A.42
89.18 	127A.43 if the school employs a teacher who is not appropriately licensed or approved 
89.19 	by the board of teaching. The school may employ necessary employees who are not 
89.20 	required to hold teaching licenses to perform duties other than teaching and may contract 
89.21 	for other services. The school may discharge teachers and nonlicensed employees. The 
89.22 	charter school board of directors must comply with section 181.932 and a school shall not 
89.23 	discharge, discipline, threaten or discriminate against, or penalize an employee regarding 
89.24 	the employee's compensation, terms or conditions of work location or privileges of 
89.25 	employment because the employee, or person acting on the employee's behalf, in good 
89.26 	faith transmits to the department, the state of Minnesota or a local law enforcement 
89.27 	agency information about the school's financial circumstances, educational performance, a 
89.28 	conflict of interest, or other violation of law or school policy. The charter school board 
89.29 	of directors must enter into a written agreement with each teacher that outlines the terms 
89.30 	and conditions of employment. 
89.31 	(b) A person, without holding a valid administrator's license, may perform 
89.32 	administrative, supervisory, or instructional leadership duties.  The board of directors shall 
89.33 	establish qualifications for persons that hold administrative, supervisory, or instructional 
89.34 	leadership roles. The qualifications shall include at least the following areas: instruction 
89.35 	and assessment; human resource and personnel management; financial management; 
90.1 	legal and compliance management; effective communication; and board, sponsor, and 
90.2 	community relationships. The board of directors shall use those qualifications as the basis 
90.3 	for job descriptions, hiring, and performance evaluations of those who hold administrative, 
90.4 	supervisory, or instructional leadership roles. The board of directors and an individual 
90.5 	who does not hold a valid administrative license and who serves in an administrative, 
90.6 	supervisory, or instructional leadership position shall develop a professional development 
90.7 	plan. Documentation of the implementation of the professional development plan of these 
90.8 	persons shall be included in the school's annual report.
90.9 	 The board of directors also shall decide matters related to the operation of the school, 
90.10 	including budgeting, curriculum and operating procedures.

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

90.12 	Sec. 63. Minnesota Statutes 2008, section 124D.10, subdivision 14, is amended to read:
90.13 		Subd. 14.Annual public reports. A charter school must publish an annual report at 
90.14 	least annually to its sponsor and the commissioner the information required by the sponsor 
90.15 	or the commissioner approved by the board of directors.  The annual report must at least 
90.16 	include information on school enrollment, student attrition, governance and management, 
90.17 	staffing, finances, academic performance, operational performance, innovative practices 
90.18 	and implementation, and future plans. A charter school must distribute the annual report 
90.19 	by publication, mail, or electronic means to the commissioner, sponsor, school employees, 
90.20 	and parents and legal guardians of students enrolled in the charter school and must also 
90.21 	post the report on the charter school's official Web site. The reports are public data under 
90.22 	chapter 13.

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

90.24 	Sec. 64. Minnesota Statutes 2008, section 124D.10, subdivision 15, is amended to read:
90.25 		Subd. 15.Review and comment. (a) The department must review and comment on 
90.26 	the evaluation, by the sponsor, of the performance of a charter school before the charter 
90.27 	school's contract is renewed for another contract term. The sponsor must submit to the 
90.28 	commissioner timely information for the review and comment The sponsor shall provide 
90.29 	a formal written evaluation of the school's performance before the sponsor renews the 
90.30 	charter contract. The department must review and comment on the sponsor's evaluation 
90.31 	process at the time the sponsor submits its application for approval and each time the 
90.32 	sponsor undergoes its five-year review under subdivision 3, paragraph (e).
91.1 	(b) A sponsor shall monitor and evaluate the fiscal, operational,  and student 
91.2 	performance of the school, and may for this purpose annually assess a charter school: (1) 
91.3 	in its first, second, or third year of operation up to $30 per student up to a maximum of 
91.4 	$10,000; and (2) in its fourth or a subsequent year of operation up to $10 per student up to 
91.5 	a maximum of $3,500 a fee according to paragraph (c). The agreed upon fee structure 
91.6 	must be stated in the charter school contract.
91.7 	(c) The fee that each charter school pays to a sponsor each year is the greater of: 
91.8 	(1) the basic formula allowance for that year; or 
91.9 	(2) the lesser of: 
91.10 	(i) the maximum fee factor times the basic formula allowance for that year; or
91.11 	(ii) 1.0 percent of the basic formula allowance for that year times the charter school's 
91.12 	adjusted marginal cost pupil units for that year. The maximum fee factor equals 1.5 in 
91.13 	fiscal year 2010, 2.0 in fiscal year 2011, 3.0 in fiscal year 2012, and 4.0 in fiscal years 
91.14 	2013 and later.
91.15 	(d) The department and any charter school it sponsors must not assess or pay a 
91.16 	fee under paragraphs (b) and (c).
91.17 	(e) For the preoperational planning period, the sponsor may assess a charter school a 
91.18 	fee equal to the basic formula allowance.
91.19 	(f) By September 30 of each year, a sponsor shall submit to the commissioner a 
91.20 	statement of expenditures related to sponsoring activities during the previous school year 
91.21 	ending June 30. A copy of the statement shall be given to all schools chartered by the 
91.22 	sponsor.

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

91.24 	Sec. 65. Minnesota Statutes 2008, section 124D.10, subdivision 17, is amended to read:
91.25 		Subd. 17.Leased space.  A charter school may lease space from a an independent 
91.26 	or special school board eligible to be a sponsor or other public or private nonprofit 
91.27 	nonsectarian organization. The department, in consultation with the Department of 
91.28 	Administration, must review and approve or disapprove the lease agreement within 60 
91.29 	business days of receiving an application for lease aid. If a charter school is unable to lease 
91.30 	appropriate space from an eligible board or other public or private nonprofit nonsectarian 
91.31 	organization, the school may lease space from another nonsectarian organization if 
91.32 	the Department of Education, in consultation with the Department of Administration, 
91.33 	approves the lease. If the school is unable to lease appropriate space from public or private 
91.34 	nonsectarian organizations, the school may lease space from a sectarian organization if 
92.1 	the leased space is constructed as a school facility and the Department of Education, in 
92.2 	consultation with the Department of Administration, approves the lease.

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

92.4 	Sec. 66. Minnesota Statutes 2008, section 124D.10, is amended by adding a 
92.5 	subdivision to read:
92.6 		Subd. 17a.Building corporation. (a) A charter school is prohibited from 
92.7 	organizing the nonprofit building corporation until the sponsor files a supplementary 
92.8 	affidavit with and receives approval from the commissioner.
92.9 	(b) Upon approval by the sponsor and the commissioner, a charter school that has 
92.10 	operated for at least eight consecutive years and is not currently in statutory operating debt 
92.11 	may form a separate affiliated nonprofit building corporation to construct or purchase 
92.12 	a school facility. The nonprofit building corporation must elect a board of directors. 
92.13 	Members of the building corporation board of directors must not be members of the 
92.14 	charter school board of directors. The state is immune from any liability as a result of the 
92.15 	contractual arrangement and the facility. The sponsor shall submit a supplemental affidavit 
92.16 	to the commissioner stating that the sponsor has reviewed:
92.17 	(1) the school's feasibility study on facility options;
92.18 	(2) documents showing the school's need and projected enrollment for such a facility; 
92.19 	(3) the school's financial plan and financial status; and
92.20 	(4) documentation that no other available existing facilities, including those that 
92.21 	could be renovated, are available for purchase or lease.

92.22 	EFFECTIVE DATE. This section is effective the day following final enactment 
92.23 	and applies to building purchases or expansions initiated by building corporations after 
92.24 	July 1, 2009.

92.25 	Sec. 67. Minnesota Statutes 2008, section 124D.10, subdivision 20, is amended to read:
92.26 		Subd. 20.Leave to teach in a charter school. If a teacher employed by a district 
92.27 	makes a written request for an extended leave of absence to teach at a charter school, 
92.28 	the district must grant the leave. The district must grant a leave not to exceed a total of 
92.29 	five years. Any request to extend the leave shall be granted only at the discretion of the 
92.30 	school board. The district may require that the request for a leave or extension of leave be 
92.31 	made up to 90 days before the teacher would otherwise have to report for duty. Except 
92.32 	as otherwise provided in this subdivision and except for section 122A.46, subdivision 7, 
93.1 	the leave is governed by section 122A.46, including, but not limited to, reinstatement, 
93.2 	notice of intention to return, seniority, salary, and insurance. 
93.3 	During a leave, the teacher may continue to aggregate benefits and credits in the 
93.4 	Teachers' Retirement Association account by paying both the employer and employee 
93.5 	contributions based upon the annual salary of the teacher for the last full pay period before 
93.6 	the leave began. The retirement association may impose reasonable requirements to 
93.7 	efficiently administer this subdivision according to chapters 354 and 354A.

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

93.9 	Sec. 68. Minnesota Statutes 2008, section 124D.10, subdivision 23, is amended to read:
93.10 		Subd. 23.Causes for nonrenewal or termination of charter school contract.
 93.11 	(a) The duration of the contract with a sponsor must be for the term contained in the 
93.12 	contract according to subdivision 6. The sponsor may or may not renew a contract at 
93.13 	the end of the term for any ground listed in paragraph (b). A sponsor may unilaterally 
93.14 	terminate a contract during the term of the contract for any ground listed in paragraph (b). 
93.15 	At least 60 days before not renewing or terminating a contract, the sponsor shall notify 
93.16 	the board of directors of the charter school of the proposed action in writing. The notice 
93.17 	shall state the grounds for the proposed action in reasonable detail and that the charter 
93.18 	school's board of directors may request in writing an informal hearing before the sponsor 
93.19 	within 14 15 business days of receiving notice of nonrenewal or termination of the 
93.20 	contract. Failure by the board of directors to make a written request for a hearing within 
93.21 	the 14-day 15-business-day period shall be treated as acquiescence to the proposed action. 
93.22 	Upon receiving a timely written request for a hearing, the sponsor shall give reasonable
93.23 	ten business days notice to the charter school's board of directors of the hearing date. 
93.24 	The sponsor shall conduct an informal hearing before taking final action. The sponsor 
93.25 	shall take final action to renew or not renew a contract by the last day of classes in the 
93.26 	school year. If the sponsor is a local board, the school's board of directors may appeal the 
93.27 	sponsor's decision to the commissioner no later than 20 business days before the proposed 
93.28 	date for terminating the contract or the end date of the contract.
93.29 	(b) A contract may be terminated or not renewed upon any of the following grounds:
93.30 	(1) failure to meet the requirements for pupil performance contained in the contract;
93.31 	(2) failure to meet generally accepted standards of fiscal management;
93.32 	(3) violations of law; or
93.33 	(4) other good cause shown.
93.34 	If a contract is terminated or not renewed under this paragraph, the school must be 
93.35 	dissolved according to the applicable provisions of chapter 308A or 317A, except when 
94.1 	the commissioner approves the decision of a different eligible sponsor to authorize the 
94.2 	charter school.
94.3 	(c) If at the end of a contract term, either the sponsor or and the charter school board 
94.4 	of directors wants mutually agree to voluntarily terminate or not renew the contract, a 
94.5 	change in sponsors is allowed if the commissioner approves the decision of transfer to a 
94.6 	different eligible sponsor to authorize the charter school. The party intending to terminate 
94.7 	the contract must notify the other party and the commissioner of its intent at least 90 days 
94.8 	before the date on which the contract ends Both parties must jointly submit their intent 
94.9 	in writing to the commissioner to mutually terminate the contract. The sponsor that is a 
94.10 	party to the existing contract at least must inform the approved different eligible sponsor 
94.11 	about the fiscal and operational status and student performance of the school. Before the 
94.12 	commissioner determines whether to approve a transfer of sponsor, the commissioner first 
94.13 	must determine whether the charter school and prospective new sponsor can identify and 
94.14 	effectively resolve those circumstances causing the previous sponsor and the charter 
94.15 	school to mutually agree to terminate the contract. If no different eligible transfer of
94.16 	sponsor is approved, the school must be dissolved according to applicable law and the 
94.17 	terms of the contract.
94.18 	(d) The commissioner, after providing reasonable notice to the board of directors of 
94.19 	a charter school and the existing sponsor, and after providing an opportunity for a public 
94.20 	hearing, may terminate the existing sponsorial relationship contract between the sponsor 
94.21 	and the charter school if the charter school has a history of:
94.22 	(1) sustained failure to meet pupil performance requirements contained in the 
94.23 	contract; 
94.24 	(2) financial mismanagement or failure to meet generally accepted standards of 
94.25 	financial management; or
94.26 	(2) (3) repeated or major violations of the law.

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

94.28 	Sec. 69. Minnesota Statutes 2008, section 124D.10, subdivision 23a, is amended to 
94.29 	read:
94.30 		Subd. 23a.Related party lease costs. (a) A charter school is prohibited from 
94.31 	entering a lease of real property with a related party as defined in subdivision 26, unless 
94.32 	the lessor is a nonprofit corporation under chapter 317A or a cooperative under chapter 
94.33 	308A, and the lease cost is reasonable under section 124D.11, subdivision 4, clause (1). 
94.34 	(b) For purposes of this section and section 124D.11:
95.1 	(1) "related party" means an affiliate or a close relative of the other party in question, 
95.2 	an affiliate of a close relative, or a close relative of an affiliate; 
95.3 	(2) "affiliate" means a person that directly or indirectly, through one or more 
95.4 	intermediaries, controls, is controlled by, or is under common control with another person; 
95.5 	(3) "close relative" means an individual whose relationship by blood, marriage, or 
95.6 	adoption to another individual is no more remote than first cousin; 
95.7 	(4) "person" means an individual or entity of any kind; and 
95.8 	(5) "control" means the ability to affect the management, operations, or policy 
95.9 	actions or decisions of a person, whether through ownership of voting securities, by 
95.10 	contract or otherwise.
95.11 	(c) A lease of real property to be used for a charter school, not excluded in paragraph 
95.12 	(a), must contain the following statement: "This lease is subject to Minnesota Statutes, 
95.13 	section 124D.10, subdivision 23a." 
95.14 	(c) (d) If a charter school enters into as lessee a lease with a related party and the 
95.15 	charter school subsequently closes, the commissioner has the right to recover from the 
95.16 	lessor any lease payments in excess of those that are reasonable under section 124D.11, 
95.17 	subdivision 4, clause (1). 

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

95.19 	Sec. 70. Minnesota Statutes 2008, section 124D.10, subdivision 25, is amended to read:
95.20 		Subd. 25.Extent of specific legal authority. (a) The board of directors of a charter 
95.21 	school may sue and be sued.
95.22 	(b) The board may not levy taxes or issue bonds.
95.23 	(c) The commissioner, a sponsor, members of the board of a sponsor in their official 
95.24 	capacity, and employees of a sponsor are immune from civil or criminal liability with 
95.25 	respect to all activities related to a charter school they approve or sponsor. The board 
95.26 	of directors shall obtain at least the amount of and types of insurance required by the 
95.27 	contract, according to subdivision 6 up to the applicable tort liability limits under chapter 
95.28 	466. The charter school board must submit a copy of the insurance policy to its sponsor 
95.29 	and the commissioner before starting operations. The charter school board must submit 
95.30 	changes in its insurance carrier or policy to its sponsor and the commissioner within 
95.31 	20 business days of the change.

95.32 	EFFECTIVE DATE. This section is effective August 1, 2009. 

96.1 	Sec. 71. Minnesota Statutes 2008, section 124D.11, is amended by adding a 
96.2 	subdivision to read:
96.3 		Subd. 4a.State total building lease aid. The state total building lease aid equals 
96.4 	$37,045,000 for fiscal year 2009. The state total building lease aid for later years equals 
96.5 	the total state building lease aid for the preceding fiscal year times 1.03. If the aid in this 
96.6 	section is insufficient, the commissioner shall prorate the available aid among all eligible 
96.7 	charter schools for that year.

96.8 	Sec. 72. Minnesota Statutes 2008, section 124D.11, subdivision 9, is amended to read:
96.9 		Subd. 9.Payment of aids to charter schools. (a) Notwithstanding section 
96.10 	127A.45, subdivision 3, aid payments for the current fiscal year to a charter school not in 
96.11 	its first year of operation shall be of an equal amount on each of the 23 24 payment dates. 
96.12 	A charter school in its first year of operation shall receive, on its first payment date, ten 
96.13 	percent of its cumulative amount guaranteed for the year and 22 payments of an equal 
96.14 	amount thereafter the sum of which shall equal the current year aid payment percentage 
96.15 	multiplied by the cumulative amount guaranteed.
96.16 	(b) Notwithstanding paragraph (a) and section 127A.45, for a charter school ceasing 
96.17 	operation on or prior to the end of a school year, the current year aid payment percentage 
96.18 	multiplied by the amount due for the school year may be paid to the school after audit 
96.19 	of prior fiscal year and current fiscal year pupil counts June 30 of a school year, for the 
96.20 	payment periods occurring after the school has ceased serving students, the commissioner 
96.21 	shall withhold state aid due to the school based on estimated state aid entitlements. The 
96.22 	charter school board of directors and sponsor must provide the commissioner with a 
96.23 	closure plan under chapter 308A or 317A, and financial information that details the 
96.24 	school's liabilities and assets. After receiving the closure plan, financial information, an 
96.25 	audit of pupil counts, and documentation of lease expenditures, and monitoring special 
96.26 	education expenditures, the commissioner may release cash withheld and may continue 
96.27 	regular payments up to the current year payment percentages if further amounts are 
96.28 	due. If, based on audits and monitoring, the school received state aid in excess of the 
96.29 	amount due, the commissioner shall retain cash withheld sufficient to eliminate the aid 
96.30 	overpayment. For a charter school ceasing operations prior to, or at the end of, a school 
96.31 	year, notwithstanding section 127A.45, subdivision 3, preliminary final payments may 
96.32 	be made after receiving the closure plan, audit of pupil counts, monitoring of special 
96.33 	education expenditures, and documentation of lease expenditures, and school submission 
96.34 	of Uniform Financial Accounting and Reporting Standards (UFARS) financial data for 
97.1 	the final year of operation. Final payment may be made upon receipt of audited financial 
97.2 	statements under section 123B.77, subdivision 3.
97.3 	(c) If a charter school fails to comply with the commissioner's directive to return, 
97.4 	for cause, federal or state funds administered by the department, the commissioner may 
97.5 	withhold an amount of state aid sufficient to satisfy the directive.
97.6 	(d) If a charter school, within the timeline under section 471.425, fails to pay a 
97.7 	school district, intermediate school district, education cooperative, or the state after 
97.8 	receiving an undisputed invoice for goods and services, the commissioner may withhold 
97.9 	an amount of state aid sufficient to satisfy the claim and shall distribute the withheld aid to 
97.10 	the school district, intermediate school district, or service cooperative. A school district, 
97.11 	intermediate school district, education cooperative, or a representative of the state shall 
97.12 	notify the commissioner when a charter school fails to pay an undisputed invoice within 
97.13 	75 business days of when it received the original invoice.
97.14 	 (e) Notwithstanding section 127A.45, subdivision 3, and paragraph (a), 80 percent 
97.15 	of the start-up cost aid under subdivision 8 shall be paid within 45 days after the first day 
97.16 	of student attendance for that school year. 
97.17 	(d) (f) In order to receive state aid payments under this subdivision, a charter school 
97.18 	in its first three years of operation must submit a school calendar in the form and manner 
97.19 	requested by the department and a quarterly report to the Department of Education. The 
97.20 	report must list each student by grade, show the student's start and end dates, if any, 
97.21 	with the charter school, and for any student participating in a learning year program, 
97.22 	the report must list the hours and times of learning year activities. The report must be 
97.23 	submitted not more than two weeks after the end of the calendar quarter to the department. 
97.24 	The department must develop a Web-based reporting form for charter schools to use 
97.25 	when submitting enrollment reports. A charter school in its fourth and subsequent year of 
97.26 	operation must submit a school calendar and enrollment information to the department in 
97.27 	the form and manner requested by the department.
97.28 	(e) (g) Notwithstanding sections 317A.701 to 317A.791, upon closure of a charter 
97.29 	school and satisfaction of creditors, cash and investment balances remaining shall be 
97.30 	returned to the state.

97.31 	EFFECTIVE DATE. This section is effective for fiscal year 2010 and later.

97.32 	Sec. 73. Minnesota Statutes 2008, section 124D.128, subdivision 2, is amended to read:
97.33 		Subd. 2.Commissioner designation. (a) An area learning center A state-approved 
97.34 	alternative program designated by the state must be a site. An area learning center A 
98.1 	state-approved alternative program must provide services to students who meet the criteria 
98.2 	in section 124D.68 and who are enrolled in:
98.3 	(1) a district that is served by the center state-approved alternative program; or
98.4 	(2) a charter school located within the geographic boundaries of a district that is 
98.5 	served by the center state-approved alternative program.
98.6 	(b) A school district or charter school may be approved biennially by the state to 
98.7 	provide additional instructional programming that results in grade level acceleration. The 
98.8 	program must be designed so that students make grade progress during the school year 
98.9 	and graduate prior to the students' peers.
98.10 	(c) To be designated, a district, charter school, or center state-approved alternative 
98.11 	program must demonstrate to the commissioner that it will:
98.12 	(1) provide a program of instruction that permits pupils to receive instruction 
98.13 	throughout the entire year; and
98.14 	(2) develop and maintain a separate record system that, for purposes of section 
98.15 	126C.05, permits identification of membership attributable to pupils participating in the 
98.16 	program. The record system and identification must ensure that the program will not have 
98.17 	the effect of increasing the total average daily membership attributable to an individual 
98.18 	pupil as a result of a learning year program. The record system must include the date the 
98.19 	pupil originally enrolled in a learning year program, the pupil's grade level, the date of 
98.20 	each grade promotion, the average daily membership generated in each grade level, the 
98.21 	number of credits or standards earned, and the number needed to graduate. 
98.22 	(d) A student who has not completed a school district's graduation requirements 
98.23 	may continue to enroll in courses the student must complete in order to graduate until 
98.24 	the student satisfies the district's graduation requirements or the student is 21 years old, 
98.25 	whichever comes first.

98.26 	Sec. 74. Minnesota Statutes 2008, section 124D.128, subdivision 3, is amended to read:
98.27 		Subd. 3.Student planning. A district, charter school, or area learning center
98.28 	state-approved alternative program must inform all pupils and their parents about the 
98.29 	learning year program and that participation in the program is optional. A continual 
98.30 	learning plan must be developed at least annually for each pupil with the participation 
98.31 	of the pupil, parent or guardian, teachers, and other staff; each participant must sign and 
98.32 	date the plan. The plan must specify the learning experiences that must occur during the 
98.33 	entire fiscal year and are necessary for grade progression or, for secondary students, 
98.34 	graduation. The plan must include:
99.1 	(1) the pupil's learning objectives and experiences, including courses or credits the 
99.2 	pupil plans to complete each year and, for a secondary pupil, the graduation requirements 
99.3 	the student must complete;
99.4 	(2) the assessment measurements used to evaluate a pupil's objectives;
99.5 	(3) requirements for grade level or other appropriate progression; and
99.6 	(4) for pupils generating more than one average daily membership in a given grade, 
99.7 	an indication of which objectives were unmet.
99.8 	The plan may be modified to conform to district schedule changes. The district may 
99.9 	not modify the plan if the modification would result in delaying the student's time of 
99.10 	graduation.

99.11 	Sec. 75. Minnesota Statutes 2008, section 124D.42, subdivision 6, is amended to read:
99.12 		Subd. 6.Program training. The commission must, within available resources:
99.13 	(1) orient each grantee organization in the nature, philosophy, and purpose of the 
99.14 	program; and
99.15 	(2) build an ethic of community service through general community service training; 
99.16 	and
99.17 	(3) provide additional training as it determines necessary, which may include 
99.18 	training in evaluating early literacy skills and teaching reading to preschool children 
99.19 	through the St. Croix River Education District under Laws 2001, First Special Session 
99.20 	chapter 6, article 2, section 70, to assist local Head Start organizations in establishing and 
99.21 	evaluating Head Start programs for developing children's early literacy skills.

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

99.23 	Sec. 76. Minnesota Statutes 2008, section 124D.42, is amended by adding a 
99.24 	subdivision to read:
99.25 		Subd. 6a.Minnesota reading corps program. (a) A Minnesota reading corps 
99.26 	program is established to provide Americorps members with a data-based problem-solving 
99.27 	model of literacy instruction to use in helping to train local Head Start program providers, 
99.28 	other prekindergarten program providers, and staff in schools with students in kindergarten 
99.29 	through grade 3 to evaluate and teach early literacy skills to children age 3 to grade 3. 
99.30 	(b) Literacy programs under this subdivision must comply with the provisions 
99.31 	governing literacy program goals and data use under section 119A.50, subdivision 3, 
99.32 	paragraph (b).

100.1 	Sec. 77. Minnesota Statutes 2008, section 124D.68, subdivision 2, is amended to read:
100.2 		Subd. 2.Eligible pupils. A pupil under the age of 21 or who meets the requirements 
100.3 	of section 120A.20, subdivision 1, paragraph (c), is eligible to participate in the graduation 
100.4 	incentives program, if the pupil:
100.5 	(1) performs substantially below the performance level for pupils of the same age 
100.6 	in a locally determined achievement test;
100.7 	(2) is at least one year behind in satisfactorily completing coursework or obtaining 
100.8 	credits for graduation;
100.9 	(3) is pregnant or is a parent;
100.10 	(4) has been assessed as chemically dependent;
100.11 	(5) has been excluded or expelled according to sections 121A.40 to 121A.56;
100.12 	(6) has been appropriately referred in accordance with section 124D.68, subdivision 
100.13 	1, by a school district for enrollment in an eligible program or a program pursuant to 
100.14 	section 124D.69;
100.15 	(7) is a victim of physical or sexual abuse;
100.16 	(8) has experienced mental health problems;
100.17 	(9) has experienced homelessness sometime within six months before requesting a 
100.18 	transfer to an eligible program;
100.19 	(10) speaks English as a second language or has limited English proficiency; or
100.20 	(11) has withdrawn from school or has been chronically truant; or
100.21 	(12) is being treated in a hospital in the seven-county metropolitan area for cancer or 
100.22 	other life threatening illness or is the sibling of an eligible pupil who is being currently 
100.23 	treated, and resides with the pupil's family at least 60 miles beyond the outside boundary 
100.24 	of the seven-county metropolitan area.

100.25 	Sec. 78. Minnesota Statutes 2008, section 124D.68, subdivision 3, is amended to read:
100.26 		Subd. 3.Eligible programs. (a) A pupil who is eligible according to subdivision 2 
100.27 	may enroll in area learning centers a state-approved alternative program under sections 
100.28 	123A.05 to 123A.08. 
100.29 	(b) A pupil who is eligible according to subdivision 2 and who is between the ages 
100.30 	of 16 and 21 a high school junior or senior may enroll in postsecondary courses under 
100.31 	section 124D.09. 
100.32 	(c) A pupil who is eligible under subdivision 2, may enroll in any public elementary 
100.33 	or secondary education program. 
100.34 	(d) A pupil who is eligible under subdivision 2, may enroll in any nonpublic, 
100.35 	nonsectarian school that has contracted with the serving school district to provide 
101.1 	educational services. However, notwithstanding other provisions of this section, only a 
101.2 	pupil who is eligible under subdivision 2, clause (12), may enroll in a contract alternative 
101.3 	school that is specifically structured to provide educational services to such a pupil.
101.4 	(e) A pupil who is between the ages of 16 and 21 may enroll in any adult basic 
101.5 	education programs approved under section 124D.52 and operated under the community 
101.6 	education program contained in section 124D.19. 

101.7 	Sec. 79. Minnesota Statutes 2008, section 124D.68, subdivision 4, is amended to read:
101.8 		Subd. 4.Additional eligible program. A pupil who is at least 16 years of age, 
101.9 	who is eligible under subdivision 2, clause (a), and who has been enrolled only in a 
101.10 	public school, if the pupil has been enrolled in any school, during the year immediately 
101.11 	before transferring under this subdivision, may transfer to any nonpublic school that has 
101.12 	contracted with the serving school district to provide nonsectarian educational services. 
101.13 	The school must enroll every eligible pupil who seeks to transfer to the school under 
101.14 	this program subject to available space.

101.15 	Sec. 80. Minnesota Statutes 2008, section 124D.83, subdivision 4, is amended to read:
101.16 		Subd. 4.Early childhood family education revenue. A school receiving aid 
101.17 	under this section is eligiblemay apply annually to the commissioner to receive an early 
101.18 	childhood family education revenue grant to provide early childhood family education 
101.19 	programs for parents and children who are enrolled or eligible for enrollment in a federally 
101.20 	recognized tribe. The revenue equals 1.5 times the statewide average expenditure per 
101.21 	participant under section 124D.135, times the number of children and parents participating 
101.22 	full time in the program. The program must grant must be used for programs and services 
101.23 	that comply with section 124D.13, except that the school is not required to provide a 
101.24 	community education program or establish a community education advisory council. The 
101.25 	program must be designed to improve the skills of parents and promote American Indian 
101.26 	history, language, and culture. The school must make affirmative efforts to encourage 
101.27 	participation by fathers. Admission may not be limited to those enrolled in or eligible for 
101.28 	enrollment in a federally recognized tribe.

101.29 	Sec. 81. Minnesota Statutes 2008, section 124D.86, subdivision 3, is amended to read:
101.30 		Subd. 3.Integration revenue. (a) Integration revenue for a school district equals 
101.31 	the lesser of: the district's integration revenue per pupil unit for fiscal year 2009 times the 
101.32 	adjusted pupil units for the school year or the following amounts:
102.1 	(1) for Independent School District No. 709, Duluth, $206 times the adjusted pupil 
102.2 	units for the school year;
102.3 	(2) for Independent School District No. 625, St. Paul, $445 times the adjusted 
102.4 	pupil units for the school year;
102.5 	(3) for Special School District No. 1, Minneapolis, the sum of $445 times the 
102.6 	adjusted pupil units for the school year and an additional $35 times the adjusted pupil units 
102.7 	for the school year that is provided entirely through a local levy;
102.8 	(4) for a district not listed in clause (1), (2), or (3), that must implement a plan 
102.9 	under Minnesota Rules, parts 3535.0100 to 3535.0180, where the district's enrollment of 
102.10 	protected students, as defined under Minnesota Rules, part 3535.0110, exceeds 15 percent, 
102.11 	the lesser of (i) the actual cost of implementing the plan during the fiscal year minus the aid 
102.12 	received under subdivision 6, or (ii) $129 times the adjusted pupil units for the school year;
102.13 	(5) for a district not listed in clause (1), (2), (3), or (4), that is required to implement 
102.14 	a plan according to the requirements of Minnesota Rules, parts 3535.0100 to 3535.0180, 
102.15 	the lesser of
102.16 	(i) the actual cost of implementing the plan during the fiscal year minus the aid 
102.17 	received under subdivision 6, or
102.18 	(ii) $92 times the adjusted pupil units for the school year.
102.19 	Any money received by districts in clauses (1) to (3) which exceeds the amount 
102.20 	received in fiscal year 2000 shall be subject to the budget requirements in subdivision 
102.21 	1a; and
102.22 	(6) for a member district of a multidistrict integration collaborative that files a plan 
102.23 	with the commissioner, but is not contiguous to a racially isolated district, integration 
102.24 	revenue equals the amount defined in clause (5).
102.25 	(b) A district that did not receive integration revenue under this subdivision for fiscal 
102.26 	year 2009 is not eligible for integration revenue for fiscal year 2010 or later.

102.27 	EFFECTIVE DATE. This section is effective July 1, 2009.

102.28 	Sec. 82. [124D.98] SUMMER OF SUCCESS.
102.29 		Subdivision 1.Establishment. The summer of success program is established to 
102.30 	provide intensive intervention to students not yet proficient on the 8th grade standardized 
102.31 	assessments in mathematics or reading. Intervention aiming to accelerate students to 
102.32 	grade level shall be delivered to students the summer between 8th and 9th grade or in 
102.33 	an extended day format during 9th grade.
103.1 		Subd. 2.Program administration. Mathematics and reading instruction shall be 
103.2 	delivered in a manner to support student success. Program components shall include, but 
103.3 	are not limited to:
103.4 	(1) duration of sufficient length and intensity, individualized based on data, to 
103.5 	support student mastery of content that brings them to grade level and prepares them for 
103.6 	9th grade material;
103.7 	(2) curriculum aligned to Minnesota kindergarten through grade 12 academic 
103.8 	standards and delivered by highly qualified instructors in the content area in which 
103.9 	instruction will be provided;
103.10 	(3) connections to other support programs and opportunities offered during the 
103.11 	traditional school year;
103.12 	(4) creation of a high school transition plan, including courses supporting college 
103.13 	and career readiness; and
103.14 	(5) participation in an external program evaluation.
103.15 		Subd. 3.Program administration. The commissioner shall administer the program 
103.16 	through a competitive process. Applicants shall apply in the form and manner prescribed 
103.17 	by the commissioner. The commissioner shall, to the extent possible, select sites in St. 
103.18 	Paul, Minneapolis, the suburban metropolitan area, and greater Minnesota.

103.19 	Sec. 83. Minnesota Statutes 2008, section 126C.05, subdivision 15, is amended to read:
103.20 		Subd. 15.Learning year pupil units. (a) When a pupil is enrolled in a learning 
103.21 	year program under section 124D.128, an area learning center or an alternative learning 
103.22 	program approved by the commissioner under sections 123A.05 and 123A.06, an 
103.23 	alternative program approved by the commissioner, or a contract alternative program 
103.24 	under section 124D.68, subdivision 3, paragraph (d), or subdivision 3a, for more than 
103.25 	1,020 hours in a school year for a secondary student, more than 935 hours in a school year 
103.26 	for an elementary student, or more than 425 hours in a school year for a kindergarten 
103.27 	student without a disability, that pupil may be counted as more than one pupil in average 
103.28 	daily membership for purposes of section 126C.10, subdivision 2a. The amount in excess 
103.29 	of one pupil must be determined by the ratio of the number of hours of instruction 
103.30 	provided to that pupil in excess of: (i) the greater of 1,020 hours or the number of hours 
103.31 	required for a full-time secondary pupil in the district to 1,020 for a secondary pupil; (ii) 
103.32 	the greater of 935 hours or the number of hours required for a full-time elementary pupil 
103.33 	in the district to 935 for an elementary pupil in grades 1 through 6; and (iii) the greater of 
103.34 	425 hours or the number of hours required for a full-time kindergarten student without a 
103.35 	disability in the district to 425 for a kindergarten student without a disability. Hours that 
104.1 	occur after the close of the instructional year in June shall be attributable to the following 
104.2 	fiscal year. A kindergarten student must not be counted as more than 1.2 pupils in average 
104.3 	daily membership under this subdivision. A student in grades 1 through 12 must not be 
104.4 	counted as more than 1.2 pupils in average daily membership under this subdivision. 
104.5 	(b)(i) To receive general education revenue for a pupil in an area learning center or 
104.6 	alternative learning program that has an independent study component, a district must meet 
104.7 	the requirements in this paragraph. The district must develop, for the pupil, a continual 
104.8 	learning plan consistent with section 124D.128, subdivision 3. Each school district that 
104.9 	has a state-approved public an area learning center or alternative learning program must 
104.10 	reserve revenue in an amount equal to at least 90 percent of the district average general 
104.11 	education revenue per pupil unit less compensatory revenue per pupil unit, minus an 
104.12 	amount equal to the product of the formula allowance according to section 126C.10, 
104.13 	subdivision 2, times .0485, calculated without basic skills and transportation sparsity 
104.14 	revenue, times the number of pupil units generated by students attending a state-approved 
104.15 	public an area learning center or alternative learning program. The amount of reserved 
104.16 	revenue available under this subdivision may only be spent for program costs associated 
104.17 	with the state-approved public area learning center or alternative learning program. 
104.18 	Compensatory revenue must be allocated according to section 126C.15, subdivision 2.
104.19 	Basic skills revenue, according to section 126C.10, subdivision 4, generated by pupils 
104.20 	attending the eligible program must be allocated to the program.
104.21 	(ii) General education revenue for a pupil in an approved a state-approved
104.22 	alternative program without an independent study component must be prorated for a 
104.23 	pupil participating for less than a full year, or its equivalent. The district must develop a 
104.24 	continual learning plan for the pupil, consistent with section 124D.128, subdivision 3. 
104.25 	Each school district that has a state-approved public an area learning center or alternative 
104.26 	learning program must reserve revenue in an amount equal to at least 90 percent of the 
104.27 	district average general education revenue per pupil unit less compensatory revenue per 
104.28 	pupil unit, minus an amount equal to the product of the formula allowance according 
104.29 	to section 126C.10, subdivision 2, times .0485, calculated without basic skills and 
104.30 	transportation sparsity revenue, times the number of pupil units generated by students 
104.31 	attending a state-approved public an area learning center or alternative learning program. 
104.32 	The amount of reserved revenue available under this subdivision may only be spent for 
104.33 	program costs associated with the state-approved public area learning center or alternative 
104.34 	learning program. Compensatory revenue must be allocated according to section 126C.15, 
104.35 	subdivision 2. Basic skills revenue, according to section 126C.10, subdivision 4, generated 
104.36 	by pupils attending the eligible program must be allocated to the program.
105.1 	(iii) General education revenue for a pupil in ana state-approved alternative program 
105.2 	that has an independent study component must be paid for each hour of teacher contact 
105.3 	time and each hour of independent study time completed toward a credit or graduation 
105.4 	standards necessary for graduation. Average daily membership for a pupil shall equal the 
105.5 	number of hours of teacher contact time and independent study time divided by 1,020.
105.6 	(iv) For an a state-approved alternative program having an independent study 
105.7 	component, the commissioner shall require a description of the courses in the program, the 
105.8 	kinds of independent study involved, the expected learning outcomes of the courses, and 
105.9 	the means of measuring student performance against the expected outcomes.

105.10 	Sec. 84. Minnesota Statutes 2008, section 126C.05, subdivision 20, is amended to read:
105.11 		Subd. 20.Project-based average daily membership. (a) Project-based is an 
105.12 	instructional program where students complete coursework for credit at an individual pace 
105.13 	that is primarily student-led and may be completed on site, in the community, or online. 
105.14 	A project-based program may be made available to all or selected students and grades 
105.15 	in a school. To receive general education revenue for a pupil enrolled in a public school 
105.16 	with a project-based program, a school must meet the requirements in this paragraph. 
105.17 	The school must:
105.18 	(1) register with the commissioner as a project-based program by May 30 of the 
105.19 	preceding fiscal year apply and receive approval from the commissioner as a project-based 
105.20 	program at least 90 days prior to starting the program;
105.21 	(2) provide a minimum teacher contact of no less than one hour per week per 
105.22 	project-based credit for each pupil;
105.23 	(3) ensure that the program will not increase the total average daily membership 
105.24 	generated by the student and that there will be the expectation that the students will be 
105.25 	making typical progression towards high school graduation;
105.26 	(3) (4) maintain a record system that shows when each credit or portion thereof was 
105.27 	reported for membership for each pupil; and
105.28 	(4) (5) report pupil membership consistent with paragraph (b).
105.29 	(b) The commissioner must develop a formula for reporting pupil membership to 
105.30 	compute average daily membership for each registeredapproved project-based school
105.31 	program. Average daily membership for a pupil in a registeredan approved project-based 
105.32 	program is the lesser of:
105.33 	(1) 1.0; or
105.34 	(2) the ratio of (i) the number of membership hours generated by project-based 
105.35 	credits completed during the school year plus membership hours generated by credits 
106.1 	completed in a seat-based setting to (ii) the annual required instructional hours at that 
106.2 	grade level. Membership hours for a partially completed project-based credit must be 
106.3 	prorated. General education revenue for a pupil in a project-based program must be 
106.4 	prorated for a pupil participating for less than a full year, or its equivalent.
106.5 	(c) For a program that has not been approved by the commissioner for project-based 
106.6 	learning but an auditor or other site visit deems that any portion or credits awarded by the 
106.7 	school are project-based, student membership must be computed per paragraph (b).

106.8 	Sec. 85. Minnesota Statutes 2008, section 171.05, subdivision 2, is amended to read:
106.9 		Subd. 2.Person less than 18 years of age. (a) Notwithstanding any provision 
106.10 	in subdivision 1 to the contrary, the department may issue an instruction permit to an 
106.11 	applicant who is 15, 16, or 17 years of age and who:
106.12 	(1) has completed a course of driver education in another state, has a previously 
106.13 	issued valid license from another state, or is enrolled in either:
106.14 	(i) a public, private, or commercial driver education program that is approved by 
106.15 	the commissioner of public safety and that includes classroom and behind-the-wheel 
106.16 	training; or
106.17 	(ii) an approved behind-the-wheel driver education program when the student is 
106.18 	receiving full-time instruction in a home school within the meaning of sections 120A.22
106.19 	and 120A.24, the student is working toward a homeschool diploma, the student's status 
106.20 	as a homeschool student has been certified by the superintendent of the school district in 
106.21 	which the student resides, and the student is taking home-classroom driver training with 
106.22 	classroom materials approved by the commissioner of public safety, and the student's 
106.23 	parent has certified the student's homeschool and home-classroom driver training status on 
106.24 	the form approved by the commissioner;
106.25 	(2) has completed the classroom phase of instruction in the driver education program;
106.26 	(3) has passed a test of the applicant's eyesight;
106.27 	(4) has passed a department-administered test of the applicant's knowledge of traffic 
106.28 	laws;
106.29 	(5) has completed the required application, which must be approved by (i) either 
106.30 	parent when both reside in the same household as the minor applicant or, if otherwise, then 
106.31 	(ii) the parent or spouse of the parent having custody or, in the event there is no court order 
106.32 	for custody, then (iii) the parent or spouse of the parent with whom the minor is living 
106.33 	or, if items (i) to (iii) do not apply, then (iv) the guardian having custody of the minor or, 
106.34 	in the event a person under the age of 18 has no living father, mother, or guardian, or is 
106.35 	married or otherwise legally emancipated, then (v) the applicant's adult spouse, adult close 
107.1 	family member, or adult employer; provided, that the approval required by this clause 
107.2 	contains a verification of the age of the applicant and the identity of the parent, guardian, 
107.3 	adult spouse, adult close family member, or adult employer; and
107.4 	(6) has paid the fee required in section 171.06, subdivision 2.
107.5 	(b) For the purposes of determining compliance with the certification of paragraph 
107.6 	(a), clause (1), item (ii), the commissioner may request verification of a student's 
107.7 	homeschool status from the superintendent of the school district in which the student 
107.8 	resides and the superintendent shall provide that verification.
107.9 	(c) The instruction permit is valid for two years from the date of application and 
107.10 	may be renewed upon payment of a fee equal to the fee for issuance of an instruction 
107.11 	permit under section 171.06, subdivision 2.

107.12 	Sec. 86. Minnesota Statutes 2008, section 171.17, subdivision 1, is amended to read:
107.13 		Subdivision 1.Offenses. (a) The department shall immediately revoke the license 
107.14 	of a driver upon receiving a record of the driver's conviction of:
107.15 	(1) manslaughter resulting from the operation of a motor vehicle or criminal 
107.16 	vehicular homicide or injury under section 609.21;
107.17 	(2) a violation of section 169A.20 or 609.487;
107.18 	(3) a felony in the commission of which a motor vehicle was used;
107.19 	(4) failure to stop and disclose identity and render aid, as required under section 
107.20 	169.09, in the event of a motor vehicle accident, resulting in the death or personal injury 
107.21 	of another;
107.22 	(5) perjury or the making of a false affidavit or statement to the department under 
107.23 	any law relating to the application, ownership or operation of a motor vehicle, including 
107.24 	on the certification required under section 171.05, subdivision 2, clause (1), item (ii), to 
107.25 	issue an instruction permit to a homeschool student;
107.26 	(6) except as this section otherwise provides, three charges of violating within a 
107.27 	period of 12 months any of the provisions of chapter 169 or of the rules or municipal 
107.28 	ordinances enacted in conformance with chapter 169, for which the accused may be 
107.29 	punished upon conviction by imprisonment;
107.30 	(7) two or more violations, within five years, of the misdemeanor offense described 
107.31 	in section 169.444, subdivision 2, paragraph (a);
107.32 	(8) the gross misdemeanor offense described in section 169.444, subdivision 2, 
107.33 	paragraph (b);
107.34 	(9) an offense in another state that, if committed in this state, would be grounds for 
107.35 	revoking the driver's license; or
108.1 	(10) a violation of an applicable speed limit by a person driving in excess of 100 
108.2 	miles per hour. The person's license must be revoked for six months for a violation of 
108.3 	this clause, or for a longer minimum period of time applicable under section 169A.53, 
108.4 	169A.54, or 171.174.
108.5 	(b) The department shall immediately revoke the school bus endorsement of a driver 
108.6 	upon receiving a record of the driver's conviction of the misdemeanor offense described in 
108.7 	section 169.443, subdivision 7.

108.8 	Sec. 87. Minnesota Statutes 2008, section 171.22, subdivision 1, is amended to read:
108.9 		Subdivision 1.Violations. With regard to any driver's license, including a 
108.10 	commercial driver's license, it shall be unlawful for any person:
108.11 	(1) to display, cause or permit to be displayed, or have in possession, any fictitious 
108.12 	or fraudulently altered driver's license or Minnesota identification card;
108.13 	(2) to lend the person's driver's license or Minnesota identification card to any other 
108.14 	person or knowingly permit the use thereof by another;
108.15 	(3) to display or represent as one's own any driver's license or Minnesota 
108.16 	identification card not issued to that person;
108.17 	(4) to use a fictitious name or date of birth to any police officer or in any application 
108.18 	for a driver's license or Minnesota identification card, or to knowingly make a false 
108.19 	statement, or to knowingly conceal a material fact, or otherwise commit a fraud in any 
108.20 	such application;
108.21 	(5) to alter any driver's license or Minnesota identification card;
108.22 	(6) to take any part of the driver's license examination for another or to permit 
108.23 	another to take the examination for that person;
108.24 	(7) to make a counterfeit driver's license or Minnesota identification card;
108.25 	(8) to use the name and date of birth of another person to any police officer for the 
108.26 	purpose of falsely identifying oneself to the police officer; or
108.27 	(9) to display as a valid driver's license any canceled, revoked, or suspended driver's 
108.28 	license. A person whose driving privileges have been withdrawn may display a driver's 
108.29 	license only for identification purposes; or
108.30 	(10) to submit a false affidavit or statement to the department on the certification 
108.31 	required under section 171.05, subdivision 2, clause (1), item (ii), to issue an instruction 
108.32 	permit to a homeschool student.

108.33 	Sec. 88. Minnesota Statutes 2008, section 181A.05, subdivision 1, is amended to read:
109.1 		Subdivision 1.When issued. Any minor 14 or 15 years of age who wishes to work 
109.2 	on school days during school hours shall first secure an employment certificate. The 
109.3 	certificate shall be issued only by the school district superintendent, the superintendent's 
109.4 	agent, or some other person designated by the Board of Education, or by the person in 
109.5 	charge of providing instruction for students enrolled in nonpublic schools as defined in 
109.6 	section 120A.22, subdivision 4. The employment certificate shall be issued only for 
109.7 	a specific position with a designated employer and shall be issued only in the following 
109.8 	circumstances:
109.9 	(1) if a minor is to be employed in an occupation not prohibited by rules promulgated 
109.10 	under section 181A.09 and as evidence thereof presents a signed statement from the 
109.11 	prospective employer; and 
109.12 	(2) if the parent or guardian of the minor consents to the employment; and
109.13 	(3) if the issuing officer believes the minor is physically capable of handling the job 
109.14 	in question and further believes the best interests of the minor will be served by permitting 
109.15 	the minor to work.

109.16 	Sec. 89. Minnesota Statutes 2008, section 299F.30, subdivision 1, is amended to read:
109.17 		Subdivision 1.Duties of fire marshal. Consistent with sections 121A.035, 
109.18 	121A.037, and this section, it shall be the duty of the state fire marshal, deputies and 
109.19 	assistants, to require public and private schools and educational institutions to have at 
109.20 	least five fire drills each school year, to expect students to be present and participate 
109.21 	in these drills, and to keep all doors and exits unlocked from the inside of the building 
109.22 	during school hours.

109.23 	EFFECTIVE DATE. This section is effective for the 2009-2010 school year and 
109.24 	later.

109.25 	Sec. 90. Minnesota Statutes 2008, section 299F.47, subdivision 4, is amended to read:
109.26 		Subd. 4.Local inspections. (a) If inspections of public school buildings and 
109.27 	charter schools were conducted by local units of government between January 1, 1987, 
109.28 	and January 1, 1990, then inspections may continue to be provided by the local unit 
109.29 	of government.
109.30 	(b) Notwithstanding subdivision 5, Special School District No. 6, South Saint Paul, 
109.31 	may contract with the South Metro Fire Department to conduct inspections required 
109.32 	under this section.

109.33 	Sec. 91. ASSESSMENT OF READING INSTRUCTION.
 110.1 	(a) No later than March 1, 2010, the Board of Teaching, in cooperation with the 
110.2 	commissioner of education, shall adopt an assessment of reading instruction for all 
110.3 	prekindergarten and elementary licensure candidates consistent with Minnesota Statutes, 
110.4 	section 122A.18, subdivision 2c.
110.5 	(b) The Board of Teaching and the commissioner shall report to the legislative 
110.6 	committees with jurisdiction over prekindergarten through grade 12 education policy by 
110.7 	March 15, 2010, on the assessment of reading instruction that was adopted.

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

110.9 	Sec. 92. READING INSTRUCTION RULES; LEGISLATIVE REVIEW.
 110.10 	The Board of Teaching may not adopt proposed rules regarding licensure and 
110.11 	reading instruction until the legislature has adjourned the 2009 regular session.

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

110.13 	Sec. 93. RESERVED REVENUE FOR STAFF DEVELOPMENT; TEMPORARY 
110.14 	SUSPENSION.
 110.15 	Notwithstanding Minnesota Statutes, section 122A.61, subdivision 1, for fiscal years 
110.16 	2010 and 2011 only, a school district or charter school may use revenue reserved for staff 
110.17 	development under Minnesota Statutes, section 122A.61, subdivision 1, according to the 
110.18 	requirements of general education revenue under Minnesota Statutes, section 126C.13, 
110.19 	subdivision 5.

110.20 	EFFECTIVE DATE. This section is effective July 1, 2009.

110.21 	Sec. 94. APPOINTMENTS TO CHARTER SCHOOL ADVISORY COUNCIL.
 110.22 	The commissioner shall complete the appointments required under Minnesota 
110.23 	Statutes, section 124D.10, subdivision 2a, no later than September 1, 2009. The 
110.24 	commissioner's designee shall convene the first meeting of the council no later than 
110.25 	October 1, 2009. 

110.26 	Sec. 95. SINGLE-PURPOSE SPONSOR.
 110.27 	 The commissioner shall approve at least one but no more than two charitable 
110.28 	organizations formed under section 501(c)(3) of the Internal Revenue Code of 1986 whose 
110.29 	sole purpose is to sponsor charter schools, consistent with Minnesota Statutes, section 
110.30 	124D.10, subdivision 3, paragraph (b), clause (5), by June 30, 2011.

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

111.2 	Sec. 96. APPROPRIATIONS.
 111.3 		Subdivision 1.Department of Education. The sums indicated in this section are 
111.4 	appropriated from the general fund to the Department of Education for the fiscal years 
111.5 	designated.
111.6 		Subd. 2.Charter school building lease aid. For building lease aid under Minnesota 
111.7 	Statutes, section 124D.11, subdivision 4: 

111.8		$
	38,045,000
	.....
	2010
	
111.9		$
	39,186,000
	.....
	2011
	
111.10 	The 2010 appropriation includes $3,704,000 for 2009 and $34,341,000 for 2010.
111.11 	The 2011 appropriation includes $3,815,000 for 2010 and $35,371,000 for 2011.
111.12 		Subd. 3.Charter school startup aid. For charter school startup cost aid under 
111.13 	Minnesota Statutes, section 124D.11:

111.14		$
	1,488,000
	.....
	2010
	
111.15		$
	1,064,000
	.....
	2011
	
111.16 	The 2010 appropriation includes $202,000 for 2009 and $1,286,000 for 2010.
111.17 	The 2011 appropriation includes $142,000 for 2010 and $922,000 for 2011.
111.18 		Subd. 4.Integration aid. For integration aid under Minnesota Statutes, section 
111.19 	124D.86, subdivision 5:

111.20		$
	61,431,000
	.....
	2010
	
111.21		$
	61,067,000
	.....
	2011
	
111.22 	The 2010 appropriation includes $6,110,000 for 2009 and $55,322,000 for 2010.
111.23 	The 2011 appropriation includes $6,146,000 for 2010 and $54,920,000 for 2011.
111.24 		Subd. 5.Magnet school grants. For magnet school and program grants under 
111.25 	Minnesota Statutes section 124D.88:

111.26		$
	750,000
	.....
	2010
	
111.27		$
	750,000
	.....
	2011
	
111.28 		Subd. 6.Interdistrict desegregation or integration transportation grants. For 
111.29 	interdistrict desegregation or integration transportation grants under Minnesota Statutes, 
111.30 	section 124D.87:

111.31		$
	14,468,000
	.....
	2010
	
111.32		$
	17,582,000
	.....
	2011
	
112.1 		Subd. 7.Success for the future. For American Indian success for the future grants 
112.2 	under Minnesota Statutes, section 124D.81:

112.3		$
	2,137,000
	.....
	2010
	
112.4		$
	2,137,000
	.....
	2011
	
112.5 	The 2010 appropriation includes $213,000 for 2009 and $1,924,000 for 2010.
112.6 	The 2011 appropriation includes $213,000 for 2010 and $1,924,000 for 2011.
112.7 		Subd. 8.American Indian teacher preparation grants. For joint grants to assist 
112.8 	American Indian people to become teachers under Minnesota Statutes, section 122A.63:

112.9		$
	190,000
	.....
	2010
	
112.10		$
	190,000
	.....
	2011
	
112.11 		Subd. 9.Tribal contract schools. For tribal contract school aid under Minnesota 
112.12 	Statutes, section 124D.83:

112.13		$
	2,030,000
	.....
	2010
	
112.14		$
	2,211,000
	.....
	2011
	
112.15 	The 2010 appropriation includes $191,000 for 2009 and $1,839,000 for 2010.
112.16 	The 2011 appropriation includes $204,000 for 2010 and $2,007,000 for 2011.
112.17 		Subd. 10.Early childhood programs at tribal schools. For early childhood 
112.18 	family education programs at tribal contract schools under Minnesota Statutes, section 
112.19 	124D.83, subdivision 4:

112.20		$
	68,000
	.....
	2010
	
112.21		$
	68,000
	.....
	2011
	
112.22 		Subd. 11.Statewide testing and reporting system. For the statewide testing and 
112.23 	reporting system under Minnesota Statutes, section 120B.30:

112.24		$
	10,724,000
	.....
	2010
	
112.25		$
	10,724,000
	.....
	2011
	
112.26 	None of the amounts appropriated under this subdivision shall be used for contract 
112.27 	costs associated with hand-scoring of reading or mathematics constructed response 
112.28 	questions. Any balance in the first year does not cancel but is available in the second year.
112.29 		Subd. 12.Summer of success. For summer of success under Minnesota Statutes, 
112.30 	section 124D.98:

112.31		$
	1,500,000
	.....
	2010
	
112.32		$
	3,000,000
	.....
	2011
	
113.1 	Of this amount, $100,000 in fiscal year 2010 and $175,000 in fiscal year 2011 is 
113.2 	for evaluation, development, and administration of the program. Any balance available 
113.3 	from the first year does not cancel but is available in the second year. This is a onetime 
113.4 	appropriation.
113.5 		Subd. 13.Alternative compensation. For alternative compensation aid under 
113.6 	Minnesota Statutes, section 122A.415, subdivision 4:

113.7		$
	56,021,000
	.....
	2011
	
113.8 	The 2011 appropriation includes $0 for 2010 and $56,021,000 for 2011.
113.9 		Subd. 14.Examination fees; teacher training and support programs. (a) For 
113.10 	students' advanced placement and international baccalaureate examination fees under 
113.11 	Minnesota Statutes, section 120B.13, subdivision 3, and the training and related costs 
113.12 	for teachers and other interested educators under Minnesota Statutes, section 120B.13, 
113.13 	subdivision 1:

113.14		$
	3,500,000
	.....
	2010
	
113.15		$
	3,500,000
	.....
	2011
	
113.16 	(b) The advanced placement program shall receive 75 percent of the appropriation 
113.17 	each year and the international baccalaureate program shall receive 25 percent of the 
113.18 	appropriation each year. The department, in consultation with representatives of the 
113.19 	advanced placement and international baccalaureate programs selected by the Advanced 
113.20 	Placement Advisory Council and IBMN, respectively, shall determine the amounts of 
113.21 	the expenditures each year for examination fees and training and support programs for 
113.22 	each program.
113.23 	(c) Notwithstanding Minnesota Statutes, section 120B.13, subdivision 1, at least 
113.24 	$500,000 each year is for teachers to attend subject matter summer training programs 
113.25 	and follow-up support workshops approved by the advanced placement or international 
113.26 	baccalaureate programs. The commissioner shall determine the payment process and 
113.27 	the amount of the subsidy.
113.28 	(d) The commissioner shall pay all examination fees for all students of low-income 
113.29 	families under Minnesota Statutes, section 120B.13, subdivision 3, and to the extent 
113.30 	of available appropriations shall also pay examination fees for students sitting for an 
113.31 	advanced placement examination, international baccalaureate examination, or both.
113.32 	Any balance in the first year does not cancel but is available in the second year.
113.33 		Subd. 15.Advanced placement, preadvanced placement, international 
113.34 	baccalaureate, and concurrent enrollment programs. For advanced placement, 
114.1 	preadvanced placement, international baccalaureate programs, and concurrent enrollment 
114.2 	programs under Minnesota Statutes, sections 120B.132 and 124D.091:

114.3		$
	2,000,000
	.....
	2010
	
114.4		$
	2,000,000
	.....
	2011
	
114.5 	Of this amount, $1,000,000 each year is for concurrent enrollment program aid 
114.6 	under Minnesota Statutes, section 124D.091. If the appropriation is insufficient, the 
114.7 	commissioner must proportionately reduce the aid payment to each district.
114.8 	Any balance in the first year does not cancel but is available in the second year.
114.9 		Subd. 16.Collaborative urban educator. For the collaborative urban educator 
114.10 	grant program:

114.11		$
	328,000
	.....
	2010
	
114.12		$
	328,000
	.....
	2011
	
114.13 	Any balance in the first year does not cancel but is available in the second year.
114.14 		Subd. 17.Youth works program. For funding youth works programs under 
114.15 	Minnesota Statutes, sections 124D.37 to 124D.45:

114.16		$
	900,000
	.....
	2010
	
114.17		$
	900,000
	.....
	2011
	
114.18 	A grantee organization may provide health and child care coverage to the dependents 
114.19 	of each participant enrolled in a full-time youth works program to the extent such coverage 
114.20 	is not otherwise available.
114.21 		Subd. 18.Student organizations. For student organizations:

114.22		$
	725,000
	.....
	2010
	
114.23		$
	725,000
	.....
	2011
	
114.24 	$40,000 each year is for student organizations serving health occupations.
114.25 	$38,000 each year is for student organizations serving service occupations.
114.26 	$88,000 each year is for student organizations serving trade and industry occupations.
114.27 	$84,000 each year is for student organizations serving business occupations.
114.28 	$131,000 each year is for student organizations serving agriculture occupations.
114.29 	$125,000 each year is for student organizations serving family and consumer science 
114.30 	occupations.
114.31 	$95,000 each year is for student organizations serving marketing occupations.
114.32 	Any balance in the first year does not cancel but is available in the second year.
115.1 		Subd. 19.Education Planning and Assessment System (EPAS) program. For 
115.2 	the Educational Planning and Assessment System (EPAS) program under Minnesota 
115.3 	Statutes, section 120B.128:

115.4		$
	829,000
	.....
	2010
	
115.5		$
	829,000
	.....
	2011
	
115.6 	Any balance in the first year does not cancel but is available in the second year.
115.7 		Subd. 20.Early childhood literacy programs. For early childhood literacy 
115.8 	programs under Minnesota Statutes, section 119A.50, subdivision 3:

115.9		$
	1,500,000
	.....
	2010
	
115.10		$
	1,500,000
	.....
	2011
	
115.11 	(a) $1,000,000 each year is for leveraging federal and private funding to support 
115.12 	AmeriCorps members serving in the Minnesota Reading Corps program established by 
115.13 	Serve Minnesota, including costs associated with the training and teaching of early literacy 
115.14 	skills to children age three to grade 3 and the evaluation of the impact of the program 
115.15 	under Minnesota Statutes, sections 124D.38, subdivision 2, and 124D.42, subdivision 6.
115.16 	(b) $500,000 each year is for a grant to the St. Croix River Education District. 
115.17 	These funds must be used to:
115.18 	(1) deliver standardized research-based professional development in 
115.19 	problem-solving, including response to intervention and scientifically based reading 
115.20 	instruction and assessment;
115.21 	(2) provide coaching targeted to districts throughout the state;
115.22 	(3) deliver large-scale training throughout the state;
115.23 	(4) provide ongoing technical assistance to schools;
115.24 	(5) assist with implementing professional development content into higher education 
115.25 	instruction curricula; and 
115.26 	(6) evaluate the effectiveness of project activities.
115.27 	Any balance in the first year does not cancel but is available in the second year.
115.28 		Subd. 21.Teacher centers. For teacher centers under Minnesota Statutes, section 
115.29 	122A.72:

115.30		$
	1,000,000
	.....
	2010
	
115.31		$
	1,000,000
	.....
	2011
	
115.32 	Of this amount, $100,000 in fiscal year 2010 and $100,000 in fiscal year 2011 is 
115.33 	for administration and evaluation of the program. Any balance in the first year does not 
115.34 	cancel but is available in the second year. This is a onetime appropriation.
116.1 		Subd. 22.Principals' Leadership Institute. For the Principals' Leadership Institute 
116.2 	under Minnesota Statutes, section 122A.75:

116.3		$
	400,000
	.....
	2010
	
116.4		$
	400,000
	.....
	2011
	
116.5 	Any balance in the first year does not cancel but is available in the second year.
116.6 		Subd. 23.Minnesota virtual education. For the Minnesota Virtual Education 
116.7 	program under Minnesota Statutes, section 120B.17:

116.8		$
	500,000
	.....
	2010
	
116.9		$
	500,000
	.....
	2011
	
116.10 	Any balance from the first year does not cancel but is available in the second year.
116.11 	This is a onetime appropriation.

116.12 	Sec. 97.  REPEALER.
 116.13 	(a) Minnesota Statutes 2008, section 122A.24, is repealed for the 2009-2010 school 
116.14 	year and later.
116.15 	(b) Minnesota Statutes 2008, sections 120A.26, subdivisions 1 and 2; 120B.362; 
116.16 	122A.72, subdivisions 3 and 4; and 124D.10, subdivisions 18, 19, and 26, are repealed the 
116.17 	day following final enactment.

116.18 	ARTICLE 3
116.19 	SPECIAL PROGRAMS

116.20 	Section 1. Minnesota Statutes 2008, section 121A.41, subdivision 7, is amended to 
116.21 	read:
116.22 		Subd. 7.Pupil. (a) "Pupil" means any student:
116.23 	(1) without a disability under 21 years of age; or
116.24 	(2) with a disability until September 1 after the child with a disability becomes 22 
116.25 	years of age under 21 years old who has not received a regular high school diploma or 
116.26 	for a child with a disability who becomes 21 years old during the school year but has not 
116.27 	received a regular high school diploma, until the end of that school year; and
116.28 	(3) and who remains eligible to attend a public elementary or secondary school.
116.29 	(b) A "student with a disability" or a "pupil with a disability" has the same meaning 
116.30 	as a "child with a disability" under section 125A.02.

116.31 	Sec. 2. Minnesota Statutes 2008, section 121A.41, subdivision 10, is amended to read:
117.1 		Subd. 10.Suspension. "Suspension" means an action by the school administration, 
117.2 	under rules promulgated by the school board, prohibiting a pupil from attending school 
117.3 	for a period of no more than ten school days. If a suspension is longer than five days, 
117.4 	the suspending administrator must provide the superintendent with a reason for the 
117.5 	longer suspension. This definition does not apply to dismissal from school for one school 
117.6 	day or less, except as provided in federal law for a student with a disability. Each 
117.7 	suspension action may include a readmission plan. The readmission plan shall include, 
117.8 	where appropriate, a provision for implementing alternative educational services upon 
117.9 	readmission and may not be used to extend the current suspension. Consistent with section 
117.10 	125A.091, subdivision 5, the readmission plan must not obligate a parent to provide a 
117.11 	sympathomimetic medication for the parent's child as a condition of readmission. The 
117.12 	school administration may not impose consecutive suspensions against the same pupil 
117.13 	for the same course of conduct, or incident of misconduct, except where the pupil will 
117.14 	create an immediate and substantial danger to self or to surrounding persons or property, 
117.15 	or where the district is in the process of initiating an expulsion, in which case the school 
117.16 	administration may extend the suspension to a total of 15 school days. In the case 
117.17 	of a student with a disability, the student's individual education plan team must meet 
117.18 	immediately but not more than ten school days after the date on which the decision to 
117.19 	remove the student from the student's current education placement is made. The individual 
117.20 	education plan team and other qualified personnel shall at that meeting: conduct a review 
117.21 	of the relationship between the child's disability and the behavior subject to disciplinary 
117.22 	action; and determine the appropriateness of the child's education plan.
117.23 	The requirements of the individual education plan team meeting apply when:
117.24 	(1) the parent requests a meeting;
117.25 	(2) the student is removed from the student's current placement for five or more 
117.26 	consecutive days; or
117.27 	(3) the student's total days of removal from the student's placement during the 
117.28 	school year exceed ten cumulative days in a school year. The school administration shall 
117.29 	implement alternative educational services when the suspension exceeds five days. A 
117.30 	separate administrative conference is required for each period of suspension.

117.31 	Sec. 3. Minnesota Statutes 2008, section 121A.43, is amended to read:
117.32 	121A.43 EXCLUSION AND EXPULSION OF PUPILS WITH A DISABILITY.
117.33 	(a) Consistent with federal law governing days of removal and section 121A.46, 
117.34 	school personnel may suspend a child with a disability.  When a child with a disability 
117.35 	has been suspended for more than five consecutive school days or 10 cumulative school 
118.1 	days in the same school year, and that suspension does not involve a recommendation 
118.2 	for expulsion or exclusion or other change of placement under federal law, relevant 
118.3 	members of the child's individualized education program team, including at least one of 
118.4 	the child's teachers, shall meet and determine the extent the child needs services in order 
118.5 	to continue to participate in the general education curriculum, although in another setting, 
118.6 	and to progress toward meeting the goals in the child's individualized education program. 
118.7 	That meeting must occur as soon as possible, but no more than 10 days after the sixth 
118.8 	consecutive day of suspension or the tenth cumulative day of suspension has elapsed.
118.9 	(b) A dismissal for one school day or less is a day of suspension if the child with a 
118.10 	disability does not receive regular or special education instruction during that dismissal 
118.11 	period.  The notice requirements under section 121A.46 do not apply to a dismissal 
118.12 	of one day or less. 
118.13 	(c) A child with a disability shall be provided alternative educational services to the 
118.14 	extent a suspension exceeds five consecutive school days. 
118.15 	(d) Before initiating an expulsion or exclusion under sections 121A.40 to 121A.56, 
118.16 	the district, relevant members of the child's individualized education program team, 
118.17 	and the child's parent shall, consistent with federal law, determine whether the child's 
118.18 	behavior was caused by or had a direct and substantial relationship to the child's disability 
118.19 	and whether the child's conduct was a direct result of a failure to implement the child's 
118.20 	individualized education program. When a pupil child with a disability who has an 
118.21 	individual individualized education plan program is excluded or expelled under sections 
118.22 	121A.40 to 121A.56 for misbehavior that is not a manifestation of the pupil's child's
118.23 	disability, the district shall continue to provide special education and related services after 
118.24 	a period of suspension, if suspension is imposed. The district shall initiate a review of 
118.25 	the pupil's individual education plan and conduct a review of the relationship between 
118.26 	the pupil's disability and the behavior subject to disciplinary action and determine 
118.27 	the appropriateness of the pupil's education plan before commencing an expulsion or 
118.28 	exclusion during the exclusion or expulsion.

118.29 	Sec. 4. Minnesota Statutes 2008, section 124D.60, subdivision 1, is amended to read:
118.30 		Subdivision 1.Notice. Within ten30 days after the enrollment of any pupil in an 
118.31 	instructional program for limited English proficient students, the district in which the pupil 
118.32 	resides must notify the parent by mail. This notice must:
118.33 	(1) be in writing in English and in the primary language of the pupil's parents;
118.34 	(2) inform the parents that their child has been enrolled in an instructional program 
118.35 	for limited English proficient students;
119.1 	(3) contain a simple, nontechnical description of the purposes, method and content 
119.2 	of the program;
119.3 	(4) inform the parents that they have the right to visit the educational program for 
119.4 	limited English proficient students in which their child is enrolled;
119.5 	(5) inform the parents of the time and manner in which to request and receive a 
119.6 	conference for the purpose of explaining the nature and purpose of the program; and
119.7 	(6) inform the parents of their rights to withdraw their child from an educational 
119.8 	program for limited English proficient students and the time and manner in which to do so.
119.9 	The department shall, at the request of the district, prepare the notice in the primary 
119.10 	language of the parent.

119.11 	Sec. 5. Minnesota Statutes 2008, section 125A.01, is amended to read:
119.12 	125A.01 DEFINITIONS.
119.13 		Subdivision 1.Terms defined. For purposes of this chapter, the words defined in 
119.14 	section 120A.05 have the same meaning.
119.15 		Subd. 2.Local education agency. "Local education agency" means a public 
119.16 	board of education or other public authority legally constituted within the state for 
119.17 	either administrative control or direction of, or to perform a service function for, public 
119.18 	elementary or secondary schools in a city, county, township, school district, or other 
119.19 	political subdivision of the state, or for a combination of school districts in the state as an 
119.20 	administrative agency for its public elementary and secondary schools. Local education 
119.21 	agency includes a fiscal host. The Minnesota Department of Education must continue to 
119.22 	recognize fiscal hosts for purposes of paying Minnesota's special education aids and 
119.23 	calculating tuition billing amounts.

119.24 	Sec. 6. Minnesota Statutes 2008, section 125A.02, is amended to read:
119.25 	125A.02 CHILD WITH A DISABILITY DEFINED.
119.26 		Subdivision 1. Child with a disability. Every child who has Child with a disability 
119.27 	means a child evaluated in accordance with federal and state special education law as 
119.28 	having a hearing impairment, blindness, visual disability, speech or language impairment, 
119.29 	physical disability, other health impairment, mental disability, emotional/behavioral 
119.30 	disorder, specific learning disability, autism, traumatic brain injury, multiple disabilities, or 
119.31 	deaf/blind disability and who, by reason thereof, needs special instruction and education 
119.32 	and related services, as determined by the standards rules of the commissioner, is a 
119.33 	child with a disability. A licensed physician, an advanced practice nurse, or a licensed 
119.34 	psychologist is qualified to make a diagnosis and determination of attention deficit 
120.1 	disorder or attention deficit hyperactivity disorder for purposes of identifying a child 
120.2 	with a disability. 
120.3 		Subd. 1a.Children ages three through seven experiencing developmental 
120.4 	delays. In addition, every child under age three, and at local district discretion from age 
120.5 	three to age seven, who needs special instruction and services, as determined by the 
120.6 	standards rules of the commissioner, because the child has a substantial delay or has 
120.7 	an identifiable physical or mental condition known to hinder normal development is 
120.8 	a child with a disability. 
120.9 		Subd. 2.Not a child with a disability. A child with a short-term or temporary 
120.10 	physical or emotional illness or disability, as determined by the standards rules of the 
120.11 	commissioner, is not a child with a disability.

120.12 	Sec. 7. Minnesota Statutes 2008, section 125A.07, is amended to read:
120.13 	125A.07 RULES OF COMMISSIONER RULEMAKING.
120.14 	(a) As defined in Consistent with this paragraph section, the commissioner must
120.15 	shall  adopt new rules and amend existing rules relative to qualifications of essential 
120.16 	personnel, courses of study, methods of instruction, pupil eligibility, size of classes, rooms, 
120.17 	equipment, supervision, parent consultation, and other necessary rules for instruction of 
120.18 	children with a disability. These rules must provide standards and procedures appropriate 
120.19 	for the implementation of and within the limitations of sections 125A.08 and 125A.091. 
120.20 	These rules must also provide standards for the discipline, control, management, and 
120.21 	protection of children with a disability. The commissioner must not adopt rules for pupils 
120.22 	served primarily in the regular classroom establishing either case loads or the maximum 
120.23 	number of pupils that may be assigned to special education teachers. The commissioner, in 
120.24 	consultation with the Departments of Health and Human Services, must adopt permanent 
120.25 	rules for instruction and services for children under age five and their families. These 
120.26 	rules are binding on state and local education, health, and human services agencies. The 
120.27 	commissioner must adopt rules to determine eligibility for special education services. The 
120.28 	rules must include procedures and standards by which to grant variances for experimental 
120.29 	eligibility criteria. The commissioner must, according to section 14.05, subdivision 4, 
120.30 	notify a district applying for a variance from the rules within 45 calendar days of receiving 
120.31 	the request whether the request for the variance has been granted or denied. If a request is 
120.32 	denied, the commissioner must specify the program standards used to evaluate the request 
120.33 	and the reasons for denying the request related to children with disabilities only under 
120.34 	specific authority and consistent with the requirements of chapter 14 and paragraph (c).  
121.1 	(b) As provided in this paragraph, the state's regulatory scheme should support 
121.2 	schools by assuring that all state special education rules adopted by the commissioner 
121.3 	result in one or more of the following outcomes:
121.4 	(1) increased time available to teachers and, where appropriate, to support staff 
121.5 	including school nurses for educating students through direct and indirect instruction;
121.6 	(2) consistent and uniform access to effective education programs for students with 
121.7 	disabilities throughout the state;
121.8 	(3) reduced inequalities and conflict, appropriate due process hearing procedures 
121.9 	and reduced court actions related to the delivery of special education instruction and 
121.10 	services for students with disabilities;
121.11 	(4) clear expectations for service providers and for students with disabilities;
121.12 	(5) increased accountability for all individuals and agencies that provide instruction 
121.13 	and other services to students with disabilities;
121.14 	(6) greater focus for the state and local resources dedicated to educating students 
121.15 	with disabilities; and
121.16 	(7) clearer standards for evaluating the effectiveness of education and support 
121.17 	services for students with disabilities.
121.18 	(c) Subject to chapter 14, the commissioner may adopt, amend, or rescind a rule 
121.19 	related to children with disabilities if such action is specifically required by federal law.

121.20 	Sec. 8. Minnesota Statutes 2008, section 125A.08, is amended to read:
121.21 	125A.08 SCHOOL DISTRICT OBLIGATIONS INDIVIDUALIZED 
121.22 	EDUCATION PROGRAMS.
121.23 	(a) At the beginning of each school year, each school district shall have in effect, for 
121.24 	each child with a disability, an individualized education program.
121.25 	(b) As defined in this section, every district must ensure the following:
121.26 	(1) all students with disabilities are provided the special instruction and services 
121.27 	which are appropriate to their needs. Where the individual education plan team has 
121.28 	determined appropriate goals and objectives based on the student's needs, including the 
121.29 	extent to which the student can be included in the least restrictive environment, and where 
121.30 	there are essentially equivalent and effective instruction, related services, or assistive 
121.31 	technology devices available to meet the student's needs, cost to the district may be among 
121.32 	the factors considered by the team in choosing how to provide the appropriate services, 
121.33 	instruction, or devices that are to be made part of the student's individual education plan. 
121.34 	The individual education plan team shall consider and may authorize services covered 
121.35 	by medical assistance according to section 256B.0625, subdivision 26. The student's 
122.1 	needs and the special education instruction and services to be provided must be agreed 
122.2 	upon through the development of an individual education plan. The plan must address 
122.3 	the student's need to develop skills to live and work as independently as possible within 
122.4 	the community. The individual education plan team must consider positive behavioral 
122.5 	interventions, strategies, and supports that address behavior for children with attention 
122.6 	deficit disorder or attention deficit hyperactivity disorder. By During grade 9 or age 14, 
122.7 	the plan must address the student's needs for transition from secondary services to 
122.8 	postsecondary education and training, employment, community participation, recreation, 
122.9 	and leisure and home living. In developing the plan, districts must inform parents of the 
122.10 	full range of transitional goals and related services that should be considered. The plan 
122.11 	must include a statement of the needed transition services, including a statement of the 
122.12 	interagency responsibilities or linkages or both before secondary services are concluded;  
122.13 	(2) children with a disability under age five and their families are provided special 
122.14 	instruction and services appropriate to the child's level of functioning and needs;
122.15 	(3) children with a disability and their parents or guardians are guaranteed procedural 
122.16 	safeguards and the right to participate in decisions involving identification, assessment 
122.17 	including assistive technology assessment, and educational placement of children with a 
122.18 	disability;
122.19 	(4) eligibility and needs of children with a disability are determined by an initial 
122.20 	assessment or reassessment, which may be completed using existing data under United 
122.21 	States Code, title 20, section 33, et seq.;
122.22 	(5) to the maximum extent appropriate, children with a disability, including those 
122.23 	in public or private institutions or other care facilities, are educated with children who 
122.24 	are not disabled, and that special classes, separate schooling, or other removal of children 
122.25 	with a disability from the regular educational environment occurs only when and to the 
122.26 	extent that the nature or severity of the disability is such that education in regular classes 
122.27 	with the use of supplementary services cannot be achieved satisfactorily;
122.28 	(6) in accordance with recognized professional standards, testing and evaluation 
122.29 	materials, and procedures used for the purposes of classification and placement of children 
122.30 	with a disability are selected and administered so as not to be racially or culturally 
122.31 	discriminatory; and
122.32 	(7) the rights of the child are protected when the parents or guardians are not known 
122.33 	or not available, or the child is a ward of the state.
122.34 	(b) (c) For paraprofessionals employed to work in programs for students with 
122.35 	disabilities, the school board in each district shall ensure that:
123.1 	(1) before or immediately upon employment, each paraprofessional develops 
123.2 	sufficient knowledge and skills in emergency procedures, building orientation, roles and 
123.3 	responsibilities, confidentiality, vulnerability, and reportability, among other things, to 
123.4 	begin meeting the needs of the students with whom the paraprofessional works;
123.5 	(2) annual training opportunities are available to enable the paraprofessional to 
123.6 	continue to further develop the knowledge and skills that are specific to the students with 
123.7 	whom the paraprofessional works, including understanding disabilities, following lesson 
123.8 	plans, and implementing follow-up instructional procedures and activities; and
123.9 	(3) a districtwide process obligates each paraprofessional to work under the ongoing 
123.10 	direction of a licensed teacher and, where appropriate and possible, the supervision of a 
123.11 	school nurse.

123.12 	Sec. 9. Minnesota Statutes 2008, section 125A.091, is amended by adding a 
123.13 	subdivision to read:
123.14 		Subd. 3a.Additional requirements for prior written notice. In addition to federal 
123.15 	requirements, a prior written notice shall:
123.16 	(1) inform the parent that except for the initial placement of a child in special 
123.17 	education, the school district will proceed with its proposal for the child's placement or 
123.18 	for providing special education services unless the child's parent notifies the district of 
123.19 	an objection within 14 days of when the district sends the prior written notice to the 
123.20 	parent; and 
123.21 	(2) state that a parent who objects to a proposal or refusal in the prior written notice 
123.22 	may request a conciliation conference under subdivision 7 or another alternative dispute 
123.23 	resolution procedure under subdivision 8 or 9.

123.24 	Sec. 10. Minnesota Statutes 2008, section 125A.091, subdivision 7, is amended to read:
123.25 		Subd. 7.Conciliation conference. A parent must have an opportunity to meet 
123.26 	with appropriate district staff in at least one conciliation conference if the parent objects 
123.27 	to any proposal of which the parent receives notice under subdivision 23a. If the parent 
123.28 	refuses district efforts to conciliate the dispute, the conciliation requirement is satisfied. 
123.29 	Following   a conciliation conference A district must hold a conciliation conference within 
123.30 	ten calendar days from the date the district receives a parent's objection to a proposal or 
123.31 	refusal in the prior written notice. Except as provided in this section, all discussions held 
123.32 	during a conciliation conference are confidential and are not admissible in a due process 
123.33 	hearing. Within five school days after the final conciliation conference, the district must 
123.34 	prepare and provide to the parent a conciliation conference memorandum that describes 
124.1 	the district's final proposed offer of service. This memorandum is admissible in evidence 
124.2 	in any subsequent proceeding.

124.3 	Sec. 11. Minnesota Statutes 2008, section 125A.091, subdivision 10, is amended to 
124.4 	read:
124.5 		Subd. 10.Mediated agreements. Mediated agreements are not admissible unless 
124.6 	the parties agree otherwise or a party to the agreement believes the agreement is not 
124.7 	being implemented, in which case the aggrieved party may enter the agreement into 
124.8 	evidence at a due process hearing. The parties may request another mediation to resolve 
124.9 	a dispute over implementing the mediated agreement. After a due process hearing is 
124.10 	requested, a party may request mediation and the commissioner must provide a mediator 
124.11 	who conducts a mediation session no later than the third business day after the mediation 
124.12 	request is made to the commissioner.  If the parties resolve all or a portion of the dispute, 
124.13 	or agree to use another procedure to resolve the dispute, the mediator shall ensure that the 
124.14 	resolution or agreement is in writing, signed by the parties, and a copy is given to each 
124.15 	party. The written resolution or agreement shall state that all discussions that occurred 
124.16 	during mediation are confidential and may not be used as evidence in any hearing or 
124.17 	civil proceeding. The resolution or agreement is legally binding upon the parties and is 
124.18 	enforceable in the state or federal district court. A party may request another mediation to 
124.19 	resolve a dispute over implementing the mediated agreement.

124.20 	Sec. 12. Minnesota Statutes 2008, section 125A.091, subdivision 12, is amended to 
124.21 	read:
124.22 		Subd. 12.Impartial due process hearing. (a) A parent or a district is entitled to 
124.23 	an impartial due process hearing conducted by the state when a dispute arises over the 
124.24 	identification, evaluation, educational placement, manifestation determination, interim 
124.25 	alternative educational placement, or the provision of a free appropriate public education 
124.26 	to a child with a disability. The hearing must be held in the district responsible for 
124.27 	ensuring that a free appropriate public education is provided according to state and federal 
124.28 	law. The proceedings must be recorded and preserved, at state expense, pending ultimate 
124.29 	disposition of the action. The parent and the district shall receive, at state expense, a copy 
124.30 	of the hearing transcript or recording and the hearing officer's findings of fact, conclusion 
124.31 	of law, and decisions.
124.32 	(b) The due process hearing must be conducted according to the rules of the 
124.33 	commissioner and federal law.

125.1 	Sec. 13. Minnesota Statutes 2008, section 125A.091, subdivision 13, is amended to 
125.2 	read:
125.3 		Subd. 13.Hearing officer qualifications. The commissioner must appoint an 
125.4 	individual who is qualified under this subdivision to serve as a hearing officer. The 
125.5 	commissioner shall maintain a list of qualified hearing officers. The list shall include a 
125.6 	statement of the qualifications of each person listed. Upon receipt of a written request 
125.7 	for a hearing, the commissioner shall appoint a hearing officer from the list. The hearing 
125.8 	officer must:
125.9 	(1) be knowledgeable and impartial;
125.10 	(2) have no personal interest in or specific involvement with the student who is a 
125.11 	party to the hearing;
125.12 	(3) not have been employed as an administrator by the district that is a party to 
125.13 	the hearing;
125.14 	(4) not have been involved in selecting the district administrator who is a party 
125.15 	to the hearing;
125.16 	(5) have no personal, economic, or professional interest in the outcome of the 
125.17 	hearing other than properly administering federal and state laws, rules, and policies;
125.18 	(6) have no substantial involvement in developing state or local policies or 
125.19 	procedures challenged in the hearing;
125.20 	(7) not be a current employee or board member of a Minnesota public school district, 
125.21 	education district, intermediate unit or regional education agency, or the department if 
125.22 	the department is the service provider; and
125.23 	(8) not be a current employee or board member of a disability advocacy organization 
125.24 	or group.;
125.25 	(9) not otherwise be under contract with the department or the school district;
125.26 	(10) know and understand state and federal special education laws, rules, and 
125.27 	regulations, and legal interpretations by federal and state courts; and
125.28 	(11) have the knowledge and ability to conduct hearings and render and write 
125.29 	decisions according to appropriate, standard legal practice.

125.30 	Sec. 14. Minnesota Statutes 2008, section 125A.091, subdivision 14, is amended to 
125.31 	read:
125.32 		Subd. 14.Request for hearing. A request for a due process hearing must:
125.33 	(1) be in writing;
125.34 	(2) describe the nature of the dispute about providing special education services to 
125.35 	the student including facts relating to the dispute; and
126.1 	(3) state, to the extent known, the relief sought.
126.2 	Any school district administrator receiving a request for a due process hearing 
126.3 	must immediately forward the request to the commissioner. Within two business days of 
126.4 	receiving a request for a due process hearing, the commissioner must appoint a hearing 
126.5 	officer. The commissioner must not deny a request for hearing because the request 
126.6 	is incomplete. A party may disqualify a hearing officer only by affirmatively showing 
126.7 	prejudice or bias to the commissioner or to the chief administrative law judge if the hearing 
126.8 	officer is an administrative law judge. If a party affirmatively shows prejudice against a 
126.9 	hearing officer, the commissioner must assign another hearing officer to hear the matter.  (a) 
126.10 	A parent or a school district may file a written request for a due process hearing regarding 
126.11 	a proposal or refusal to initiate or change that child's evaluation, individualized education 
126.12 	program, or educational placement, or to provide a free appropriate public education.
126.13 	(b) The parent shall include in the hearing request the name of the child, the address 
126.14 	of the child's residence, the name of the school the child attends, a description of the 
126.15 	child's problem relating to the proposed or refused initiation or change, including facts 
126.16 	relating to the problem, and a proposed resolution of the problem to the extent known 
126.17 	and available to the parents at the time.
126.18 	(c) A parent or a school district may file a written request for a hearing under United 
126.19 	States Code, title 20, section 1415, paragraph (k).
126.20 	(d) A parent or school district filing a request for a hearing under this subdivision 
126.21 	must provide the request to the other party and a copy of the request to the department. 
126.22 	Upon receiving a request for a hearing, the department shall give to the child's parent a 
126.23 	copy of the procedural safeguards notice available to a parent under federal regulations.
126.24 	(e)(1) If the parent of a child with a disability files a written request for a hearing, 
126.25 	and the school district has not previously sent a written notice to the parent under 
126.26 	subdivision 3a, regarding the subject matter of the hearing request, the school district 
126.27 	shall, within ten days of receiving the hearing request, send to the child's parent a written 
126.28 	explanation of why the school district proposed or refused to take the action raised in the 
126.29 	hearing request. The explanation must include a description of other options that the 
126.30 	individualized education program team considered and the reason why those options were 
126.31 	rejected; a description of each evaluation procedure, assessment, record, or report that the 
126.32 	school district used as the basis for the proposed or refused action; and a description of the 
126.33 	factors that are relevant to the school district's proposal or refusal. A response by a school 
126.34 	district under this subdivision does not preclude the school district from asserting that the 
126.35 	parent's request for a hearing is insufficient under clause (2) of this paragraph; and
127.1 	(2) a hearing may not occur until the party requesting the hearing files a request that 
127.2 	meets the requirements of paragraph (b). The request under paragraph (b) is considered 
127.3 	sufficient unless the party receiving the request notifies the hearing officer and the other 
127.4 	party in writing within 15 days of receiving the request that the receiving party believes 
127.5 	the request does not meet the requirements of paragraph (b). Within five days of receiving 
127.6 	a notice under this subdivision, the hearing officer shall determine whether the request 
127.7 	meets the requirements under paragraph (b) and notify the parties.
127.8 	(f) Except as provided in paragraph (e), clause (1), the party receiving a request for a 
127.9 	hearing shall send to the party requesting the hearing a written response that addresses the 
127.10 	issues raised in the hearing request within ten days of receiving the request.

127.11 	Sec. 15. Minnesota Statutes 2008, section 125A.091, subdivision 16, is amended to 
127.12 	read:
127.13 		Subd. 16.Burden of proof. The burden of proof at a due process hearing is on the 
127.14 	district to demonstrate, by a preponderance of the evidence, that it is complying with the 
127.15 	law and offered or provided a free appropriate public education to the child in the least 
127.16 	restrictive environment. If the district has not offered or provided a free appropriate public 
127.17 	education in the least restrictive environment and the parent wants the district to pay for a 
127.18 	private placement, the burden of proof is on the parent to demonstrate, by a preponderance 
127.19 	of the evidence, that the private placement is appropriate party seeking relief.

127.20 	Sec. 16. Minnesota Statutes 2008, section 125A.091, subdivision 18, is amended to 
127.21 	read:
127.22 		Subd. 18.Hearing officer authority. (a) A hearing officer must limit an impartial 
127.23 	due process hearing to the time sufficient for each party to present its case.
127.24 	(b) A hearing officer must establish and maintain control and manage the hearing. 
127.25 	This authority includes, but is not limited to:
127.26 	(1) requiring attorneys representing parties at the hearing, after notice and an 
127.27 	opportunity to be heard, to pay court reporting and hearing officer costs, or fines payable 
127.28 	to the state, for failing to: (i) obey scheduling or prehearing orders, (ii) appear, (iii) be 
127.29 	prepared, or (iv) participate in the hearing process in good faith;
127.30 	(2) administering oaths and affirmations;
127.31 	(3) issuing subpoenas;
127.32 	(4) determining the responsible and providing districts and joining those districts, if 
127.33 	not already notified, in the proceedings;
128.1 	(5) making decisions involving identification, evaluation, educational placement, 
128.2 	manifestation determination, interim alternative educational placement, or the provision of 
128.3 	a free appropriate public education to a child with a disability; and
128.4 	(6) ordering an independent educational evaluation of a child at district expense; and
128.5 	(7) extending the hearing decision timeline if the hearing officer determines that 
128.6 	good cause exists.
128.7 	(c) Good cause includes, but is not limited to, the time required for mediation or 
128.8 	other settlement discussions, independent educational evaluation, complexity and volume 
128.9 	of issues, or finding or changing counsel.

128.10 	Sec. 17. Minnesota Statutes 2008, section 125A.091, subdivision 19, is amended to 
128.11 	read:
128.12 		Subd. 19.Expedited due process hearings.  Consistent with federal law, a parent 
128.13 	has the right to or a school district may file a written request for an expedited due process 
128.14 	hearing when there is a dispute over a manifestation determination or a proposed or actual 
128.15 	placement in an interim alternative educational setting. A district has the right to an 
128.16 	expedited due process hearing when proposing or seeking to maintain placement in an 
128.17 	interim alternative educational setting. A hearing officer must hold an expedited due 
128.18 	process hearing  within 20 school days of the date the expedited due process request is 
128.19 	filed and must issue a decision within ten calendar school  days of after  the request for a
128.20 	hearing. A hearing officer may extend by up to five additional calendar days the time for 
128.21 	issuing a decision in an expedited due process hearing. All policies in this section apply 
128.22 	to expedited due process hearings to the extent they do not conflict with federal law.  A 
128.23 	resolution meeting must occur within seven days of receiving the request for an expedited 
128.24 	due process hearing unless the parent and the school district agree in writing either to 
128.25 	waive the resolution meeting or use the mediation process. The expedited due process 
128.26 	hearing may proceed unless the matter has been resolved to the satisfaction of both parties 
128.27 	within 15 days of receiving the expedited due process hearing request.

128.28 	Sec. 18. Minnesota Statutes 2008, section 125A.091, subdivision 20, is amended to 
128.29 	read:
128.30 		Subd. 20.Hearing officer's decision; time period. (a) The hearing officer must 
128.31 	issue a decision within 45 calendar days of the date on which the commissioner receives 
128.32 	the request for a due process hearing ensure that not later than 45 days after the 30-day 
128.33 	period or the adjusted time periods under federal regulations expire, the hearing officer 
128.34 	reaches a final decision in the due process hearing and transmits a copy of the decision to 
129.1 	each party. A hearing officer, at the request of either party, may grant specific extensions 
129.2 	of time beyond the 45-day period under subdivision 18. The hearing officer must conduct 
129.3 	the oral arguments in a hearing at a time and place that is reasonably convenient to the 
129.4 	parents and child involved. A hearing officer is encouraged to accelerate the time line to 
129.5 	30 days for a child under the age of three whose needs change rapidly and who requires 
129.6 	quick resolution of a dispute. A hearing officer may not extend the time beyond the 45-day 
129.7 	period unless requested by either party for good cause shown on the record. Extensions 
129.8 	of time must not exceed a total of 30 calendar days unless both parties and the hearing 
129.9 	officer agree or time is needed to complete an independent educational evaluation. Good 
129.10 	cause includes, but is not limited to, the time required for mediation or other settlement 
129.11 	discussions, independent educational evaluation, complexity and volume of issues, or 
129.12 	finding or changing counsel.
129.13 	(b) The hearing officer's decision must: Once the hearing officer has issued a final 
129.14 	decision, the hearing officer lacks authority to amend the decision except for clerical 
129.15 	or mathematical errors.
129.16 	(c) Nothing in this subdivision precludes a hearing officer from ordering a school 
129.17 	district to comply with federal procedural safeguards under the federal Individuals with 
129.18 	Disabilities Education Act.
129.19 	(1) be in writing;
129.20 	(2) state the controlling and material facts upon which the decision is made in order 
129.21 	to apprise the reader of the basis and reason for the decision; and
129.22 	(3) be based on local standards, state statute, the rules of the commissioner, and 
129.23 	federal law.

129.24 	Sec. 19. Minnesota Statutes 2008, section 125A.091, subdivision 24, is amended to 
129.25 	read:
129.26 		Subd. 24.Review of hearing officer decisions. The parent or district may seek 
129.27 	review of the hearing officer's decision in the Minnesota Court of Appeals or in the federal 
129.28 	district court, consistent with federal law. A party must appeal to the Minnesota Court 
129.29 	of Appeals within 60 days of receiving the hearing officer's decision or must appeal to 
129.30 	federal district court within 90 days of receiving the hearing officer's decision.

129.31 	Sec. 20. Minnesota Statutes 2008, section 125A.091, subdivision 25, is amended to 
129.32 	read:
129.33 		Subd. 25.Enforcement of orders. The commissioner must monitor final hearing 
129.34 	officer decisions and ensure enforcement of hearing officer orders decisions.

130.1 	Sec. 21. Minnesota Statutes 2008, section 125A.091, subdivision 27, is amended to 
130.2 	read:
130.3 		Subd. 27.Hearing officer training. A hearing officer must participate in training 
130.4 	and follow procedures established offered  by the commissioner.

130.5 	Sec. 22. Minnesota Statutes 2008, section 125A.091, subdivision 28, is amended to 
130.6 	read:
130.7 		Subd. 28.District liability. A district is not liable for harmless technical violations 
130.8 	of this section or rules implementing this section federal or state laws, rules, or regulations 
130.9 	governing special education  if the school district can demonstrate on a case-by-case basis
130.10 	that the violations did not harm a student's educational progress or the parent's right to 
130.11 	notice, participation, or due process. This subdivision is applicable to due process hearings 
130.12 	and special education complaints filed with the department.

130.13 	Sec. 23. Minnesota Statutes 2008, section 125A.15, is amended to read:
130.14 	125A.15 PLACEMENT IN ANOTHER DISTRICT; RESPONSIBILITY.
130.15 	The responsibility for special instruction and services for a child with a disability 
130.16 	temporarily placed in another district for care and treatment shall be determined in the 
130.17 	following manner:
130.18 	(a) The district of residence of a child shall be the district in which the child's parent 
130.19 	resides, if living, or the child's guardian, or the district designated by the commissioner if 
130.20 	neither parent nor guardian is living within the state.
130.21 	(b) If a district other than the resident district places a pupil for care and treatment, 
130.22 	the district placing the pupil must notify and give the resident district an opportunity to 
130.23 	participate in the placement decision. When an immediate emergency placement of a 
130.24 	pupil is necessary and time constraints foreclose a resident district from participating in 
130.25 	the emergency placement decision, the district in which the pupil is temporarily placed 
130.26 	must notify the resident district of the emergency placement within 15 days. The resident 
130.27 	district has up to five business days after receiving notice of the emergency placement 
130.28 	to request an opportunity to participate in the placement decision, which the placing 
130.29 	district must then provide.
130.30 	(c) When a child is temporarily placed for care and treatment in a day program 
130.31 	located in another district and the child continues to live within the district of residence 
130.32 	during the care and treatment, the district of residence is responsible for providing 
130.33 	transportation to and from the care and treatment facilityprogram and an appropriate 
130.34 	educational program for the child. The resident district may establish reasonable 
131.1 	restrictions on transportation, except if a Minnesota court or agency orders the child 
131.2 	placed at a day care and treatment program and the resident district receives a copy of 
131.3 	the order, then the resident district must provide transportation to and from the program 
131.4 	unless the court or agency orders otherwise. Transportation shall only be provided by the 
131.5 	resident district during regular operating hours of the resident district. The resident district 
131.6 	may provide the educational program at a school within the district of residence, at the 
131.7 	child's residence, or in the district in which the day treatment center is located by paying 
131.8 	tuition to that district.
131.9 	(c) (d) When a child is temporarily placed in a residential program for care and 
131.10 	treatment, the nonresident district in which the child is placed is responsible for providing 
131.11 	an appropriate educational program for the child and necessary transportation while the 
131.12 	child is attending the educational program; and must bill the district of the child's residence 
131.13 	for the actual cost of providing the program, as outlined in section 125A.11, except as 
131.14 	provided in paragraph (d) (e). However, the board, lodging, and treatment costs incurred 
131.15 	in behalf of a child with a disability placed outside of the school district of residence by 
131.16 	the commissioner of human services or the commissioner of corrections or their agents, 
131.17 	for reasons other than providing for the child's special educational needs must not become 
131.18 	the responsibility of either the district providing the instruction or the district of the child's 
131.19 	residence. For the purposes of this section, the state correctional facilities operated on a 
131.20 	fee-for-service basis are considered to be residential programs for care and treatment.  
131.21 	(d) (e) A privately owned and operated residential facility may enter into a contract 
131.22 	to obtain appropriate educational programs for special education children and services 
131.23 	with a joint powers entity. The entity with which the private facility contracts for special 
131.24 	education services shall be the district responsible for providing students placed in that 
131.25 	facility an appropriate educational program in place of the district in which the facility is 
131.26 	located. If a privately owned and operated residential facility does not enter into a contract 
131.27 	under this paragraph, then paragraph (c) (d) applies.
131.28 	(e) (f) The district of residence shall pay tuition and other program costs, not 
131.29 	including transportation costs, to the district providing the instruction and services. 
131.30 	The district of residence may claim general education aid for the child as provided by 
131.31 	law. Transportation costs must be paid by the district responsible for providing the 
131.32 	transportation and the state must pay transportation aid to that district.

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

132.1 	Sec. 24. Minnesota Statutes 2008, section 125A.28, is amended to read:
132.2 	125A.28 STATE INTERAGENCY COORDINATING COUNCIL.
132.3 	An Interagency Coordinating Council of at least 17, but not more than 25 members 
132.4 	is established, in compliance with Public Law  108-446, section  641. The members 
132.5 	must be appointed by the governor. Council members must elect the council chair. The 
132.6 	representative of the commissioner may not serve as the chair. The council must be 
132.7 	composed of at least five parents, including persons of color, of children with disabilities 
132.8 	under age 12, including at least three parents of a child with a disability under age seven, 
132.9 	five representatives of public or private providers of services for children with disabilities 
132.10 	under age five, including a special education director, county social service director, 
132.11 	local Head Start director, and a community health services or public health nursing 
132.12 	administrator, one member of the senate, one member of the house of representatives, one 
132.13 	representative of teacher preparation programs in early childhood-special education or 
132.14 	other preparation programs in early childhood intervention, at least one representative of 
132.15 	advocacy organizations for children with disabilities under age five, one physician who 
132.16 	cares for young children with special health care needs, one representative each from the 
132.17 	commissioners of commerce, education, health, human services, a representative from the 
132.18 	state agency responsible for child care, foster care, mental health, homeless coordinator 
132.19 	of education of homeless children and youth, and a representative from Indian health 
132.20 	services or a tribal council. Section 15.059, subdivisions 2 to 5, apply to the council. 
132.21 	The council must meet at least quarterly.
132.22 	The council must address methods of implementing the state policy of developing 
132.23 	and implementing comprehensive, coordinated, multidisciplinary interagency programs of 
132.24 	early intervention services for children with disabilities and their families.
132.25 	The duties of the council include recommending policies to ensure a comprehensive 
132.26 	and coordinated system of all state and local agency services for children under age five 
132.27 	with disabilities and their families. The policies must address how to incorporate each 
132.28 	agency's services into a unified state and local system of multidisciplinary assessment 
132.29 	practices, individual intervention plans, comprehensive systems to find children in need of 
132.30 	services, methods to improve public awareness, and assistance in determining the role of 
132.31 	interagency early intervention committees.
132.32 	On the date that Minnesota Part C Annual Performance Report is submitted to the 
132.33 	federal Office of Special Education, the council must recommend to the governor and the 
132.34 	commissioners of education, health, human services, commerce, and employment and 
132.35 	economic development policies for a comprehensive and coordinated system.
133.1 	Notwithstanding any other law to the contrary, the State Interagency Coordinating 
133.2 	Council expires on June 30, 2009 2014.

133.3 	Sec. 25. Minnesota Statutes 2008, section 125A.51, is amended to read:
133.4 	125A.51 PLACEMENT OF CHILDREN WITHOUT DISABILITIES; 
133.5 	EDUCATION AND TRANSPORTATION.
133.6 	The responsibility for providing instruction and transportation for a pupil without a 
133.7 	disability who has a short-term or temporary physical or emotional illness or disability, as 
133.8 	determined by the standards of the commissioner, and who is temporarily placed for care 
133.9 	and treatment for that illness or disability, must be determined as provided in this section.
133.10 	(a) The school district of residence of the pupil is the district in which the pupil's 
133.11 	parent or guardian resides.
133.12 	(b) When parental rights have been terminated by court order, the legal residence 
133.13 	of a child placed in a residential or foster facility for care and treatment is the district in 
133.14 	which the child resides.
133.15 	(c) Before the placement of a pupil for care and treatment, the district of residence 
133.16 	must be notified and provided an opportunity to participate in the placement decision. 
133.17 	When an immediate emergency placement is necessary and time does not permit 
133.18 	resident district participation in the placement decision, the district in which the pupil is 
133.19 	temporarily placed, if different from the district of residence, must notify the district 
133.20 	of residence of the emergency placement within 15 days of the placement. When a 
133.21 	nonresident district makes an emergency placement without first consulting with the 
133.22 	resident district, the resident district has up to five business days after receiving notice 
133.23 	of the emergency placement to request an opportunity to participate in the placement 
133.24 	decision, which the placing district must then provide.
133.25 	(d) When a pupil without a disability is temporarily placed for care and treatment 
133.26 	in a day program and the pupil continues to live within the district of residence during 
133.27 	the care and treatment, the district of residence must provide instruction and necessary 
133.28 	transportation to and from the care and treatment facilityprogram for the pupil. The 
133.29 	resident district may establish reasonable restrictions on transportation, except if a 
133.30 	Minnesota court or agency orders the child placed at a day care and treatment program 
133.31 	and the resident district receives a copy of the order, then the resident district must provide 
133.32 	transportation to and from the program unless the court or agency orders otherwise. 
133.33 	Transportation shall only be provided by the resident district during regular operating 
133.34 	hours of the resident district. The resident district may provide the instruction at a school 
133.35 	within the district of residence, at the pupil's residence, or in the case of a placement 
134.1 	outside of the resident district, in the district in which the day treatment program is located 
134.2 	by paying tuition to that district. The district of placement may contract with a facility to 
134.3 	provide instruction by teachers licensed by the state Board of Teaching.
134.4 	(e) When a pupil without a disability is temporarily placed in a residential program 
134.5 	for care and treatment, the district in which the pupil is placed must provide instruction 
134.6 	for the pupil and necessary transportation while the pupil is receiving instruction, and in 
134.7 	the case of a placement outside of the district of residence, the nonresident district must 
134.8 	bill the district of residence for the actual cost of providing the instruction for the regular 
134.9 	school year and for summer school, excluding transportation costs.
134.10 	(f) Notwithstanding paragraph (e), if the pupil is homeless and placed in a public or 
134.11 	private homeless shelter, then the district that enrolls the pupil under section 127A.47, 
134.12 	subdivision 2, shall provide the transportation, unless the district that enrolls the pupil 
134.13 	and the district in which the pupil is temporarily placed agree that the district in which 
134.14 	the pupil is temporarily placed shall provide transportation. When a pupil without a 
134.15 	disability is temporarily placed in a residential program outside the district of residence, 
134.16 	the administrator of the court placing the pupil must send timely written notice of the 
134.17 	placement to the district of residence. The district of placement may contract with a 
134.18 	residential facility to provide instruction by teachers licensed by the state Board of 
134.19 	Teaching. For purposes of this section, the state correctional facilities operated on a 
134.20 	fee-for-service basis are considered to be residential programs for care and treatment.
134.21 	(g) The district of residence must include the pupil in its residence count of pupil 
134.22 	units and pay tuition as provided in section 123A.488 to the district providing the 
134.23 	instruction. Transportation costs must be paid by the district providing the transportation 
134.24 	and the state must pay transportation aid to that district. For purposes of computing state 
134.25 	transportation aid, pupils governed by this subdivision must be included in the disabled 
134.26 	transportation category if the pupils cannot be transported on a regular school bus route 
134.27 	without special accommodations.

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

134.29 	Sec. 26. Minnesota Statutes 2008, section 125A.57, subdivision 2, is amended to read:
134.30 		Subd. 2.Assistive technology device. "Assistive technology device" means any 
134.31 	item, piece of equipment, software, or product system, whether acquired commercially 
134.32 	off the shelf, modified, or customized, that is used to increase, maintain, or improve 
134.33 	functional capabilities of children with disabilities a child with a disability. It does not 
134.34 	mean a medical device that is surgically implanted or a replacement of such a device.

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

135.2 	Sec. 27. Minnesota Statutes 2008, section 125A.63, subdivision 2, is amended to read:
135.3 		Subd. 2.Programs. The resource centers must offer summer institutes andlike 
135.4 	programsor other training programs throughout the state for deaf or hard of hearing
135.5 	hard-of-hearing, blind or visually impaired, and multiply disabled pupils. The resource 
135.6 	centers must also offer workshops for teachers, and leadership development for teachers.
135.7 	A program offered through the resource centers must promote and develop education 
135.8 	programs offered by school districts or other organizations. The program must assist 
135.9 	school districts or other organizations to develop innovative programs.

135.10 	Sec. 28. Minnesota Statutes 2008, section 125A.63, subdivision 4, is amended to read:
135.11 		Subd. 4.Advisory committees. The commissioner shall establish an 
135.12 	advisory committee for each resource center. The advisory committees shall develop 
135.13 	recommendations regarding the resource centers and submit an annual report to the 
135.14 	commissioner on the form and in the manner prescribed by the commissioner. The 
135.15 	advisory committee for the Resource Center for the Deaf and Hard-of-Hearing shall meet 
135.16 	at least four times a year and submit an annual report to the commissioner, the legislature, 
135.17 	and the Commission of Deaf, DeafBlind, and Hard-of-Hearing Minnesotans.
135.18 	The recommendations must include:
135.19 	(1) aggregate data-based education outcomes over time for deaf and hard-of-hearing 
135.20 	children, consistent with state academic standards and assessments under chapter 120B; 
135.21 	and
135.22 	(2) a data-based plan that includes evidence-based best practices known to improve 
135.23 	the educational outcomes of deaf and hard-of-hearing children.

135.24 	Sec. 29. Minnesota Statutes 2008, section 125A.744, subdivision 3, is amended to read:
135.25 		Subd. 3.Implementation. Consistent with section 256B.0625, subdivision 26, 
135.26 	school districts may enroll as medical assistance providers or subcontractors and bill 
135.27 	the Department of Human Services under the medical assistance fee for service claims 
135.28 	processing system for special education services which are covered services under chapter 
135.29 	256B, which are provided in the school setting for a medical assistance recipient, and for 
135.30 	whom the district has secured informed consent consistent with section 13.05, subdivision 
135.31 	4, paragraph (d), and section 256B.77, subdivision 2, paragraph (p), to bill for each type 
135.32 	of covered service. School districts shall be reimbursed by the commissioner of human 
135.33 	services for the federal share of individual education plan health-related services that 
136.1 	qualify for reimbursement by medical assistance, minus up to five percent retained by 
136.2 	the commissioner of human services for administrative costs, not to exceed $350,000
136.3 	$370,000  per fiscal year. The commissioner may withhold up to five percent of each 
136.4 	payment to a school district. Following the end of each fiscal year, the commissioner shall 
136.5 	settle up with each school district in order to ensure that collections from each district 
136.6 	for departmental administrative costs are made on a pro rata basis according to federal 
136.7 	earnings for these services in each district. A school district is not eligible to enroll as 
136.8 	a home care provider or a personal care provider organization for purposes of billing 
136.9 	home care services under sections 256B.0651 and 256B.0653 to 256B.0656 until the 
136.10 	commissioner of human services issues a bulletin instructing county public health nurses 
136.11 	on how to assess for the needs of eligible recipients during school hours. To use private 
136.12 	duty nursing services or personal care services at school, the recipient or responsible party 
136.13 	must provide written authorization in the care plan identifying the chosen provider and the 
136.14 	daily amount of services to be used at school.

136.15 	Sec. 30. Minnesota Statutes 2008, section 125A.76, subdivision 1, is amended to read:
136.16 		Subdivision 1.Definitions. For the purposes of this section, the definitions in this 
136.17 	subdivision apply.
136.18 	(a) "Basic revenue" has the meaning given it in section 126C.10, subdivision 2. 
136.19 	For the purposes of computing basic revenue pursuant to this section, each child with a 
136.20 	disability shall be counted as prescribed in section 126C.05, subdivision 1.
136.21 	(b) "Essential personnel" means teachers, cultural liaisons, related services, and 
136.22 	support services staff providing direct services to students. Essential personnel may also 
136.23 	include special education paraprofessionals or clericals providing support to teachers and 
136.24 	students by preparing paperwork and making arrangements related to special education 
136.25 	compliance requirements, including parent meetings and individual education plans.
136.26 	Essential personnel does not include administrators and supervisors.
136.27 	(c) "Average daily membership" has the meaning given it in section 126C.05.
136.28 	(d) "Program growth factor" means 1.046 for fiscal year 2012 and later.

136.29 	Sec. 31. Minnesota Statutes 2008, section 127A.47, subdivision 5, is amended to read:
136.30 		Subd. 5.Notification of resident district. A district educating a pupil who is 
136.31 	a resident of another district must notify the district of residence within 60 days of the 
136.32 	date the pupil is determined by the district to be a nonresident, but not later than August 
136.33 	1 following the end of the school year in which the pupil is educated. If the district of 
136.34 	residence does not receive a notification from the providing district pursuant to this 
137.1 	subdivision, it is not liable to that district for any tuition billing received after August 1 
137.2 	of the next school year.

137.3 	Sec. 32. APPROPRIATIONS.
 137.4 		Subdivision 1.Department of Education. The sums indicated in this section are 
137.5 	appropriated from the general fund to the Department of Education for the fiscal years 
137.6 	designated.
137.7 		Subd. 2.Special education; regular. For special education aid under Minnesota 
137.8 	Statutes, section 125A.75:

137.9		$
	734,071,000
	.....
	2010
	
137.10		$
	781,497,000
	.....
	2011
	
137.11 	The 2010 appropriation includes $71,947,000 for 2009 and $662,124,000 for 2010.
137.12 	The 2011 appropriation includes $73,569,000 for 2010 and $707,928,000 for 2011.
137.13 		Subd. 3.Aid for children with disabilities. For aid under Minnesota Statutes, 
137.14 	section 125A.75, subdivision 3, for children with disabilities placed in residential facilities 
137.15 	within the district boundaries for whom no district of residence can be determined:

137.16		$
	1,717,000
	.....
	2010
	
137.17		$
	1,895,000
	.....
	2011
	
137.18 	If the appropriation for either year is insufficient, the appropriation for the other 
137.19 	year is available.
137.20 		Subd. 4.Travel for home-based services. For aid for teacher travel for home-based 
137.21 	services under Minnesota Statutes, section 125A.75, subdivision 1:

137.22		$
	258,000
	.....
	2010
	
137.23		$
	282,000
	.....
	2011
	
137.24 	The 2010 appropriation includes $24,000 for 2009 and $234,000 for 2010.
137.25 	The 2011 appropriation includes $26,000 for 2010 and $256,000 for 2011.
137.26 		Subd. 5.Special education; excess costs. For excess cost aid under Minnesota 
137.27 	Statutes, section 125A.79, subdivision 7:

137.28		$
	110,871,000
	.....
	2010
	
137.29		$
	110,877,000
	.....
	2011
	
137.30 	The 2010 appropriation includes $37,046,000 for 2009 and $73,825,000 for 2010.
137.31 	The 2011 appropriation includes $37,022,000 for 2010 and $73,855,000 for 2011.
138.1 		Subd. 6.Court-placed special education revenue. For reimbursing serving 
138.2 	school districts for unreimbursed eligible expenditures attributable to children placed in 
138.3 	the serving school district by court action under Minnesota Statutes, section 125A.79, 
138.4 	subdivision 4:

138.5		$
	76,000
	.....
	2010
	
138.6		$
	78,000
	.....
	2011
	
138.7 		Subd. 7.Special education out-of-state tuition. For special education out-of-state 
138.8 	tuition according to Minnesota Statutes, section 125A.79, subdivision 8:

138.9		$
	250,000
	.....
	2010
	
138.10		$
	250,000
	.....
	2011

138.11 	Sec. 33.  REPEALER.
 138.12 	Minnesota Statutes 2008, sections 125A.05; and 125A.091, subdivisions 1, 2, 3, 4, 
138.13 	22, and 23 are repealed.
138.14 	Minnesota Rules, parts 3525.0210, subparts 34 and 43; 3525.0400; 3525.2445; and 
138.15 	3525.4220, are repealed.

138.16 	ARTICLE 4
138.17 	FACILITIES AND TECHNOLOGY

138.18 	Section 1. Minnesota Statutes 2008, section 123B.54, is amended to read:
138.19 	123B.54 DEBT SERVICE APPROPRIATION.
138.20 	(a) $14,814,000 in fiscal year 2008, $9,109,000 in fiscal year 2009, $7,286,000
138.21 	$7,948,000 in fiscal year 2010, and $6,878,000 $9,275,000 in fiscal year 2011, $9,574,000 
138.22 	in fiscal year 2012, and $8,904,000 in fiscal year 2013 and later are appropriated from the 
138.23 	general fund to the commissioner of education for payment of debt service equalization 
138.24 	aid under section 123B.53.
138.25 	(b) The appropriations in paragraph (a) must be reduced by the amount of any 
138.26 	money specifically appropriated for the same purpose in any year from any state fund.

138.27 	Sec. 2. Minnesota Statutes 2008, section 123B.59, subdivision 6, is amended to read:
138.28 		Subd. 6.Alternative facilities aid. (a) A district's alternative facilities aid is the 
138.29 	amount equal to the district's annual debt service costs, provided that the amount does 
138.30 	not exceed the amount certified to be levied for those purposes for taxes payable in 1997, 
138.31 	or for a district that made a levy under subdivision 5, paragraph (b), the lesser of the 
139.1 	district's annual levy amount, or one-sixth of the amount of levy that it certified for that 
139.2 	purpose for taxes payable in 1998.
139.3 	(b) Notwithstanding paragraph (a), for fiscal years 2010 through 2012, an 
139.4 	independent school district that has authority to issue general obligation bonds without 
139.5 	voter approval, other than authority according to this section or under section 475.51, is 
139.6 	not eligible for aid under this section. In addition to levy authority granted in this section, 
139.7 	for taxes payable in 2010 only, a school district that previously received aid under this 
139.8 	section may levy for any aid eliminated under this paragraph in taxes payable 2010 and 
139.9 	recognize that revenue in fiscal year 2010.

139.10 	EFFECTIVE DATE. This section is effective for fiscal year 2010 and later.

139.11 	Sec. 3. Minnesota Statutes 2008, section 123B.59, subdivision 7, is amended to read:
139.12 		Subd. 7.Alternative facilities appropriation. (a) An amount not to exceed 
139.13 	$19,700,000 $15,554,000 for fiscal year 2000 2010,and $20,000,000 $4,554,000 for 
139.14 	fiscal year 2001 and 2011, $15,554,000 for fiscal year 2012, and $19,287,000 each year 
139.15 	thereafter is appropriated from the general fund to the commissioner of education for 
139.16 	payment of alternative facilities aid under subdivision 6.
139.17 	(b) The appropriation in paragraph (a) must be reduced by the amount of any money 
139.18 	specifically appropriated for the same purpose in any year from any state fund.

139.19 	EFFECTIVE DATE. This section is effective for fiscal year 2010 and later.

139.20 	Sec. 4. Minnesota Statutes 2008, section 123B.70, subdivision 1, is amended to read:
139.21 		Subdivision 1.Commissioner approval. In determining whether to give a school 
139.22 	facility a positive, negative, or unfavorable review and comment, the commissioner 
139.23 	must evaluate the proposals for facilities using the information provided under section 
139.24 	123B.71, subdivision 9.  
139.25 	(a) If a school board proposes a new school, the local school board retains the 
139.26 	authority to determine the minimum acreage needed to accommodate the school and 
139.27 	related facilities. The commissioner may evaluate the proposals but may not issue a 
139.28 	negative or unfavorable review and comment under this section for a school facility based 
139.29 	solely on acreage of the proposed school site.
139.30 	(b) If a school board proposes to renovate an existing school, the local school board 
139.31 	retains the authority to choose whether to renovate an existing school or to build a new 
139.32 	school, regardless of the acreage of the current school site or the cost of the renovation 
139.33 	relative to the cost of building a new school. The commissioner's evaluation of whether 
140.1 	to replace a facility must not be based solely upon the ratio of renovation costs to the 
140.2 	cost of replacement.

140.3 	EFFECTIVE DATE. This section is effective for review and comments issued 
140.4 	after July 1, 2009.

140.5 	Sec. 5. Minnesota Statutes 2008, section 123B.71, subdivision 9, is amended to read:
140.6 		Subd. 9.Information required. A school board proposing to construct a facility 
140.7 	described in subdivision 8 shall submit to the commissioner a proposal containing 
140.8 	information including at least the following:
140.9 	(1) the geographic area and population to be served, preschool through grade 12 
140.10 	student enrollments for the past five years, and student enrollment projections for the 
140.11 	next five years;
140.12 	(2) a list of existing facilities by year constructed, their uses, and an assessment of 
140.13 	the extent to which alternate facilities are available within the school district boundaries 
140.14 	and in adjacent school districts;
140.15 	(3) a list of the specific deficiencies of the facility that demonstrate the need for a 
140.16 	new or renovated facility to be provided, and a list of the specific benefits that the new 
140.17 	or renovated facility will provide to the students, teachers, and community users served 
140.18 	by the facility;
140.19 	(4) the relationship of the project to any priorities established by the school district, 
140.20 	educational cooperatives that provide support services, or other public bodies in the 
140.21 	service area;
140.22 	(5) a description of the pedestrian, bicycle, and transit connections between the 
140.23 	school and nearby residential areas that make it easier for children, teachers, and parents 
140.24 	to get to the school by walking, bicycling, and taking transit; 
140.25 	(5) (6) a specification of how the project will increase community use of the facility
140.26 	maximizes the opportunity for cooperative use of existing park, recreation, and other 
140.27 	public facilities and whether and how the project will increase collaboration with other 
140.28 	governmental or nonprofit entities;
140.29 	(6) (7) a description of the project, including the specification of site and outdoor 
140.30 	space acreage and square footage allocations for classrooms, laboratories, and support 
140.31 	spaces; estimated expenditures for the major portions of the project; and the dates the 
140.32 	project will begin and be completed;
140.33 	(7) (8) a specification of the source of financing the project; the scheduled date 
140.34 	for a bond issue or school board action; a schedule of payments, including debt service 
141.1 	equalization aid; and the effect of a bond issue on local property taxes by the property 
141.2 	class and valuation;
141.3 	(8) (9) an analysis of how the proposed new or remodeled facility will affect school 
141.4 	district operational or administrative staffing costs, and how the district's operating budget 
141.5 	will cover any increased operational or administrative staffing costs;
141.6 	(9) (10) a description of the consultation with local or state road and transportation 
141.7 	officials on multimodal school site access and safety issues, and the ways that the project 
141.8 	will address those issues;
141.9 	(10) (11) a description of how indoor air quality issues have been considered and a 
141.10 	certification that the architects and engineers designing the facility will have professional 
141.11 	liability insurance;
141.12 	(11) (12) as required under section 123B.72, for buildings coming into service 
141.13 	after July 1, 2002, a certification that the plans and designs for the extensively renovated 
141.14 	or new facility's heating, ventilation, and air conditioning systems will meet or exceed 
141.15 	code standards; will provide for the monitoring of outdoor airflow and total airflow of 
141.16 	ventilation systems; and will provide an indoor air quality filtration system that meets 
141.17 	ASHRAE standard 52.1;
141.18 	(12) (13) a specification of any desegregation requirements that cannot be met 
141.19 	by any other reasonable means;
141.20 	(13) (14) a specification, if applicable, of how the facility will utilize environmentally 
141.21 	sustainable school facility design concepts; and
141.22 	(14) (15) a description of how the architects and engineers have considered 
141.23 	the American National Standards Institute Acoustical Performance Criteria, Design 
141.24 	Requirements and Guidelines for Schools of the maximum background noise level and 
141.25 	reverberation times; and
141.26 	(16) any existing information from the relevant local unit of government about the 
141.27 	cumulative costs to provide infrastructure to serve the school, such as utilities, sewer, 
141.28 	roads, and sidewalks.

141.29 	Sec. 6. [125B.015] STATE AND SCHOOL DISTRICT TECHNOLOGY 
141.30 	GUIDELINES.
141.31 		Subdivision 1.State technology guidelines; guideline setting. (a) Notwithstanding 
141.32 	other law to the contrary, the commissioner, the Minnesota Education Technology Task 
141.33 	Force, and representatives of school districts must work together to identify for school 
141.34 	districts the robust technology tools and systems that improve the educational achievement 
141.35 	of all Minnesota students. These entities must establish a foundation of flexible shared 
142.1 	services that supports state development and implementation of new and more efficient 
142.2 	educational business practices, including the use of modern analytical tools that help 
142.3 	schools and school districts make data-driven decisions and increase instructional time. 
142.4 	These entities also must anticipate the needs of school districts for effectively using 
142.5 	emerging technologies to make the best and most cost-effective use of finite educational 
142.6 	resources.
142.7 	(b) The commissioner, the Minnesota Education Technology Task Force, 
142.8 	representatives of school districts, and other interested and affected stakeholders must 
142.9 	establish and then maintain, revise, and publish every four years beginning December 1, 
142.10 	2009, state and district technology guidelines consistent with the requirements of this 
142.11 	section and section 120B.023, subdivision 2, paragraph (a). The state and school districts 
142.12 	must use the technology guidelines to participate in a uniform data collection system 
142.13 	premised on:
142.14 	(1) common data definitions for all required data elements;
142.15 	(2) a common course catalogue;
142.16 	(3) common transcript definitions; and
142.17 	(4) school district infrastructure technology guidelines.
142.18 	(c) School districts, consistent with this section and other applicable law, may use 
142.19 	financial resources in addition to state funding to provide students with the technology 
142.20 	tools they need to succeed in an increasingly complex and information-rich environment.
142.21 		Subd. 2.District technology guidelines. (a) The commissioner, in collaboration 
142.22 	with the Minnesota Education Technology Task Force, must establish and then maintain, 
142.23 	revise, and publish six categories of district technology guidelines consistent with this 
142.24 	section. The district technology guidelines must encompass:
142.25 	(1) instructional technology that includes best practices in 21st century classroom 
142.26 	instruction and student learning;
142.27 	(2) technological tools that support formative and summative online assessments, 
142.28 	equipment, and software;
142.29 	(3) shared services that facilitate network and data systems administration;
142.30 	(4) data practices that include technical security, Internet safety, and data privacy;
142.31 	(5) data management that facilitates efficient data transfers involving school districts 
142.32 	and the department; and
142.33 	(6) facilities infrastructure that supports multipurpose technology facilities for 
142.34 	instruction and assessment.
142.35 	(b) School districts are encouraged to align district technology expenditures with 
142.36 	state and district technology guidelines established under this section.
143.1 	(c) Beginning December 1, 2010, and each two-year period thereafter, school 
143.2 	districts must use the district technology guidelines in this section to complete a review of 
143.3 	the district technology environment that:
143.4 	(1) examines the alignment of district technology expenditures to the technology 
143.5 	guidelines under this section;
143.6 	(2) identifies service gaps in the district technology plan; and
143.7 	(3) estimates the funding needed to fill service gaps.
143.8 	(d) School districts must transmit the substance of the review to the commissioner in 
143.9 	the form and manner the commissioner determines in collaboration with the Minnesota 
143.10 	Education Technology Task Force. The commissioner must evaluate and report the 
143.11 	substance of the reviews to the legislature by February 15, 2011, and each two-year period 
143.12 	thereafter.

143.13 	EFFECTIVE DATE. This section is effective the day following final enactment 
143.14 	and applies to the 2009-2010 school year and later.

143.15 	Sec. 7. Minnesota Statutes 2008, section 125B.26, subdivision 1, is amended to read:
143.16 		Subdivision 1.Costs to be submitted. (a) A district or,  charter school, or 
143.17 	intermediate school district shall submit its actual telecommunications/Internet access 
143.18 	costs for the previous fiscal year, adjusted for any e-rate revenue received, to the 
143.19 	department by August 15 of each year as prescribed by the commissioner. Costs eligible 
143.20 	for reimbursement under this program are limited to the following:
143.21 	(1) ongoing or recurring telecommunications/Internet access costs associated with 
143.22 	Internet access, data lines, and video links providing:
143.23 	(i) the equivalent of one data line, video link, or integrated data/video link that relies 
143.24 	on a transport medium that operates at a minimum speed of 1.544 megabytes per second 
143.25 	(T1) for each elementary school, middle school, or high school under section 120A.05, 
143.26 	subdivisions 9, 11, and 13, including the recurring telecommunications line lease costs 
143.27 	and ongoing Internet access service fees; or
143.28 	(ii) the equivalent of one data line or video circuit, or integrated data/video link that 
143.29 	relies on a transport medium that operates at a minimum speed of 1.544 megabytes per 
143.30 	second (T1) for each district, including recurring telecommunications line lease costs 
143.31 	and ongoing Internet access service fees;
143.32 	(2) recurring costs of contractual or vendor-provided maintenance on the school 
143.33 	district's wide area network to the point of presence at the school building up to the router, 
143.34 	codec, or other service delivery equipment located at the point of presence termination 
143.35 	at the school or school district;
144.1 	(3) recurring costs of cooperative, shared arrangements for regional delivery of 
144.2 	telecommunications/Internet access between school districts, postsecondary institutions, 
144.3 	and public libraries including network gateways, peering points, regional network 
144.4 	infrastructure, Internet2 access, and network support, maintenance, and coordination; and
144.5 	(4) service provider installation fees for installation of new telecommunications lines 
144.6 	or increased bandwidth.
144.7 	(b) Costs not eligible for reimbursement under this program include:
144.8 	(1) recurring costs of school district staff providing network infrastructure support;
144.9 	(2) recurring costs associated with voice and standard telephone service;
144.10 	(3) costs associated with purchase of network hardware, telephones, computers, or 
144.11 	other peripheral equipment needed to deliver telecommunications access to the school or 
144.12 	school district;
144.13 	(4) costs associated with laying fiber for telecommunications access;
144.14 	(5) costs associated with wiring school or school district buildings;
144.15 	(6) costs associated with purchase, installation, or purchase and installation of 
144.16 	Internet filtering; and
144.17 	(7) costs associated with digital content, including online learning or distance 
144.18 	learning programming, and information databases.

144.19 	Sec. 8. Minnesota Statutes 2008, section 125B.26, subdivision 2, is amended to read:
144.20 		Subd. 2.E-rates. To be eligible for aid under this section, a district or, charter 
144.21 	school, or intermediate school district is required to file an e-rate application either 
144.22 	separately or through its telecommunications access cluster and have a current technology 
144.23 	plan on file with the department. Discounts received on telecommunications expenditures 
144.24 	shall be reflected in the costs submitted to the department for aid under this section.

144.25 	Sec. 9. Minnesota Statutes 2008, section 125B.26, subdivision 3, is amended to read:
144.26 		Subd. 3.Reimbursement criteria. The commissioner shall develop criteria 
144.27 	for approving costs submitted by organized school districts and, charter schools, and 
144.28 	intermediate school districts under subdivision 1.

144.29 	Sec. 10. Minnesota Statutes 2008, section 125B.26, subdivision 4, is amended to read:
144.30 		Subd. 4.District aid. For fiscal year 2006 and later, a district or, charter school's
144.31 	school, or intermediate school district's Internet access equity aid equals the district or,
144.32 	charter school's school, or intermediate school district's approved cost for the previous 
144.33 	fiscal year according to subdivision 1 exceeding $15 times the district's adjusted marginal 
145.1 	cost pupil units for the previous fiscal year or no reduction if the district is part of an 
145.2 	organized telecommunications access cluster. Equity aid must be distributed to the 
145.3 	telecommunications access cluster for districts, charter schools, or intermediate school 
145.4 	districts that are members of the cluster or to individual districts and, charter schools, or 
145.5 	intermediate school districts not part of a telecommunications access cluster.

145.6 	Sec. 11. ALTERNATIVE FACILITIES AID ADJUSTMENT.
 145.7 	Notwithstanding Minnesota Statutes, section 123B.59, subdivision 6, for fiscal year 
145.8 	2011 only, a special school district that has authority to issue general obligation bonds 
145.9 	without voter approval, other than authority according to Minnesota Statutes, section 
145.10 	123B.59 or 475.51, is not eligible for aid under Minnesota Statutes, section 123B.59, 
145.11 	subdivision 6.

145.12 	Sec. 12. APPROPRIATIONS.
 145.13 		Subdivision 1.Department of Education. The sums indicated in this section are 
145.14 	appropriated from the general fund to the Department of Education for the fiscal years 
145.15 	designated.
145.16 		Subd. 2.Health and safety revenue. For health and safety aid according to 
145.17 	Minnesota Statutes, section 123B.57, subdivision 5:

145.18		$
	161,000
	.....
	2010
	
145.19		$
	160,000
	.....
	2011
	
145.20 	The 2010 appropriation includes $10,000 for 2009 and $151,000 for 2010.
145.21 	The 2011 appropriation includes $16,000 for 2010 and $144,000 for 2011.
145.22 		Subd. 3.Debt service equalization. For debt service aid according to Minnesota 
145.23 	Statutes, section 123B.53, subdivision 6:

145.24		$
	7,948,000
	.....
	2010
	
145.25		$
	9,275,000
	.....
	2011
	
145.26 	The 2010 appropriation includes $851,000 for 2009 and $7,097,000 for 2010.
145.27 	The 2011 appropriation includes $788,000 for 2010 and $8,487,000 for 2011.
145.28 		Subd. 4.Alternative facilities bonding aid. For alternative facilities bonding aid, 
145.29 	according to Minnesota Statutes, section 123B.59, subdivision 1:

145.30		$
	15,927,000
	.....
	2010
	
145.31		$
	5,654,000
	.....
	2011
	
145.32 	The 2010 appropriation includes $1,928,000 for 2009 and $13,999,000 for 2010.
146.1 	The 2011 appropriation includes $1,555,000 for 2010 and $4,099,000 for 2011.
146.2 		Subd. 5.Equity in telecommunications access. For equity in telecommunications 
146.3 	access:

146.4		$
	3,750,000
	.....
	2010
	
146.5		$
	3,750,000
	.....
	2011
	
146.6 	If the appropriation amount is insufficient, the commissioner shall reduce the 
146.7 	reimbursement rate in Minnesota Statutes, section 125B.26, subdivisions 4 and 5, and the 
146.8 	revenue for fiscal years 2010 and 2011 shall be prorated.
146.9 	Any balance in the first year does not cancel but is available in the second year.
146.10 		Subd. 6.Deferred maintenance aid. For deferred maintenance aid, according to 
146.11 	Minnesota Statutes, section 123B.591, subdivision 4:

146.12		$
	2,302,000
	.....
	2010
	
146.13		$
	2,073,000
	.....
	2011
	
146.14 	The 2010 appropriation includes $260,000 for 2009 and $2,042,000 for 2010.
146.15 	The 2011 appropriation includes $226,000 for 2010 and $1,847,000 for 2011.

146.16 	ARTICLE 5
146.17 	NUTRITION, LIBRARIES, AND ACCOUNTING

146.18 	Section 1. Minnesota Statutes 2008, section 134.31, subdivision 4a, is amended to read:
146.19 		Subd. 4a.Services to the blind and physically handicapped people with visual 
146.20 	and physical disabilities. The Minnesota Department of Education shall provide 
146.21 	specialized services to the blind and physically handicapped people with visual and 
146.22 	physical disabilities through the Minnesota Braille and Talking Book Library for the Blind 
146.23 	and Physically Handicapped under a cooperative plan with the National Library Services 
146.24 	for the Blind and Physically Handicapped of the Library of Congress.

146.25 	Sec. 2. Minnesota Statutes 2008, section 134.31, is amended by adding a subdivision 
146.26 	to read:
146.27 		Subd. 7.Telephone or electronic meetings. (a) Notwithstanding section 13D.01, 
146.28 	the Advisory Committee for the Minnesota Braille and Talking Book Library may conduct 
146.29 	a meeting of its members by telephone or other electronic means so long as the following 
146.30 	conditions are met:
146.31 	(1) all members of the committee participating in the meeting, wherever their 
146.32 	physical locations, can hear one another and can hear all discussion and testimony;
147.1 	(2) members of the public present at the regular meeting location of the committee 
147.2 	can hear all discussion, testimony, and votes of the members of the committee;
147.3 	(3) at least one member of the committee is physically present at the regular meeting 
147.4 	location; and
147.5 	(4) all votes are conducted by roll call, so each member's vote on each issue can be 
147.6 	identified and recorded.
147.7 	(b) Each member of the committee participating in a meeting by telephone or other 
147.8 	electronic means is considered present at the meeting for purposes of determining quorum 
147.9 	and participating in all proceedings.
147.10 	(c) If telephone or other electronic means is used to conduct a meeting, to the extent 
147.11 	practical, the committee shall allow a person to monitor the meeting electronically from a 
147.12 	remote location. The committee may require the person making the connection to pay 
147.13 	for the documented additional costs that the committee incurs as a result of the additional 
147.14 	connection.
147.15 	(d) If telephone or other electronic means is used to conduct a regular, special, or 
147.16 	emergency meeting, the committee shall provide notice of the regular meeting location, 
147.17 	the fact that some members may participate by telephone or other electronic means, and 
147.18 	the provisions of paragraph (c). The timing and method of providing notice is governed 
147.19 	by section 13D.04.

147.20 	Sec. 3. Minnesota Statutes 2008, section 134.34, subdivision 1, is amended to read:
147.21 		Subdivision 1.Local support levels. (a) A regional library basic system support 
147.22 	grant shall be made to any regional public library system where there are at least three 
147.23 	participating counties and where each participating city and county is providing for 
147.24 	public library service support the lesser of (a) an amount equivalent to .82 percent of the 
147.25 	average of the adjusted net tax capacity of the taxable property of that city or county, 
147.26 	as determined by the commissioner of revenue for the second, third, and fourth year 
147.27 	preceding that calendar year in 1991 and later years or (b) a per capita amount calculated 
147.28 	under the provisions of this subdivision. The per capita amount is established for calendar 
147.29 	year 1993 as $7.62. In succeeding calendar years, the per capita amount shall be increased 
147.30 	by a percentage equal to one-half of the percentage by which the total state adjusted net 
147.31 	tax capacity of property as determined by the commissioner of revenue for the second 
147.32 	year preceding that calendar year increases over that total adjusted net tax capacity for 
147.33 	the third year preceding that calendar year. 
147.34 	(b) The minimum level of support specified under this subdivision or subdivision 4 
147.35 	shall be certified annually to the participating cities and counties by the Department of 
148.1 	Education. If a city or county chooses to reduce its local support in accordance with 
148.2 	subdivision 4, paragraphs (b) or (c), it shall notify its regional public library system. The 
148.3 	regional public library system shall notify the Department of Education that a revised 
148.4 	certification is required. The revised minimum level of support shall be certified to the 
148.5 	city or county by the Department of Education. 
148.6 	(c) A city which is a part of a regional public library system shall not be required to 
148.7 	provide this level of support if the property of that city is already taxable by the county 
148.8 	for the support of that regional public library system. In no event shall the Department 
148.9 	of Education require any city or county to provide a higher level of support than the 
148.10 	level of support specified in this section in order for a system to qualify for a regional 
148.11 	library basic system support grant. This section shall not be construed to prohibit a city 
148.12 	or county from providing a higher level of support for public libraries than the level of 
148.13 	support specified in this section.

148.14 	EFFECTIVE DATE. This section is effective for calendar years 2009 and later, 
148.15 	except that the change in paragraph (a) is effective for calendar years 2011 and later.

148.16 	Sec. 4. Minnesota Statutes 2008, section 134.34, subdivision 4, is amended to read:
148.17 		Subd. 4.Limitation. (a) For calendar year 2010 and later, a regional library 
148.18 	basic system support grant shall not be made to a regional public library system for a 
148.19 	participating city or county which decreases the dollar amount provided for support for 
148.20 	operating purposes of public library service below the amount provided by it for the 
148.21 	second, or third  preceding year, whichever is less. For purposes of this subdivision and 
148.22 	subdivision 1, any funds provided under section 473.757, subdivision 2, for extending 
148.23 	library hours of operation shall not be considered amounts provided by a city or county for 
148.24 	support for operating purposes of public library service. This subdivision shall not apply 
148.25 	to participating cities or counties where the adjusted net tax capacity of that city or county 
148.26 	has decreased, if the dollar amount of the reduction in support is not greater than the dollar 
148.27 	amount by which support would be decreased if the reduction in support were made in 
148.28 	direct proportion to the decrease in adjusted net tax capacity.
148.29 	(b) For calendar year 2009 and later, in any calendar year in which a city's or 
148.30 	county's aid under sections 477A.011 to 477A.014 or credits under section 273.1384 is 
148.31 	reduced after the city or county has certified its levy payable in that year, it may reduce 
148.32 	its local support by the lesser of:
148.33 	(1) ten percent; or 
148.34 	(2) a percent equal to the ratio of the aid and credit reductions to the city's or county's 
148.35 	revenue base, based on aids certified for the current calendar year. For calendar year 2009 
149.1 	only, the reduction under this paragraph shall be based on 2008 aid and credit reductions 
149.2 	under the December 2008 unallotment, as well as any aid and credit reductions in calendar 
149.3 	year 2009. For pay 2009 only, the commissioner of revenue will calculate the reductions 
149.4 	under this paragraph and certify them to the commissioner of education within 15 days 
149.5 	of this provision becoming law. 
149.6 	(c) For taxes payable in 2010 and later, in any payable year in which the total 
149.7 	amounts certified for city or county aids under sections 477A.011 to 477A.014 are less 
149.8 	than the total amounts paid under those sections in the previous calendar year, a city or 
149.9 	county may reduce its local support by the lesser of:
149.10 	(1) ten percent; or 
149.11 	(2) a percent equal to the ratio of:
149.12 	(i) the difference between (A) the sum of the aid it was paid under sections 477A.011 
149.13 	to 477A.014 and the credits it received under section 273.1398 in the previous calendar 
149.14 	year and (B) the sum of the aid it is certified to be paid in the current calendar year 
149.15 	under sections 477A.011 to 477A.014 and the credits estimated to be paid under section 
149.16 	273.1398; to 
149.17 	(ii) its revenue base for the previous year, based on aids actually paid in the previous 
149.18 	calendar year. The commissioner of revenue shall calculate the percent aid cut for each 
149.19 	county and city under this paragraph and certify the percentage cuts to the commissioner 
149.20 	of education by August 1 of the year prior to the year in which the reduced aids and credits 
149.21 	are to be paid. The percentage of reduction related to reductions to credits under section 
149.22 	273.1384, shall be based on the best estimation available as of July 30.
149.23 	(d) Notwithstanding paragraph (a), (b), or (c), for calendar year 2010 and later, 
149.24 	no city or county shall reduce its support for public libraries below the minimum level 
149.25 	specified in subdivision 1.
149.26 	(e) For purposes of this subdivision, "revenue base" means the sum of:
149.27 	(1) its levy for taxes payable in the current calendar year, including the levy on 
149.28 	the fiscal disparities distribution under section 276A.06, subdivision 3, paragraph (a), 
149.29 	or 473F.08, subdivision 3, paragraph (a);
149.30 	(2) its aid under sections 477A.011 to 477A.014 in the current calendar year; and 
149.31 	(3) its taconite aid in the current calendar year under sections 298.28 and 298.282.

149.32 	EFFECTIVE DATE. This section is effective for support in calendar year 2009 
149.33 	and thereafter and for library grants paid in fiscal year 2010 and thereafter, except that the 
149.34 	changes in paragraph (a) are effective for support in calendar year 2010 and thereafter.

149.35 	Sec. 5. ELEVATOR LEVY.
 150.1 		Subdivision 1.Lac Qui Parle Valley. For taxes payable in 2010 only, Independent 
150.2 	School District No. 2853, Lac Qui Parle Valley, may levy an amount up to $8,500 for the 
150.3 	costs of a replacement elevator. The district must recognize the revenue from this section 
150.4 	in fiscal year 2010.
150.5 		Subd. 2.Richfield. For taxes payable in 2010 only, Independent School District No. 
150.6 	280, Richfield, may levy an amount up to $25,000 for the costs of replacing elevators in 
150.7 	the district. The district must recognize the revenue from this section in fiscal year 2010.
150.8 		Subd. 3.Restriction. The levy authority provided in this section must not supplant 
150.9 	the authority provided by the health and safety levy under Minnesota Statutes, section 
150.10 	123B.57.

150.11 	EFFECTIVE DATE. This section is effective for taxes payable in 2010 only.

150.12 	Sec. 6. FUND TRANSFERS.
 150.13 		Subdivision 1.Capital account transfers. Notwithstanding any law to the contrary, 
150.14 	on June 30, 2009, a school district may transfer money from its reserved for operating 
150.15 	capital account to its undesignated balance in the general fund. The amount transferred 
150.16 	by any school district must not exceed $51 times the district's adjusted marginal cost 
150.17 	pupil units for fiscal year 2008. The transfer may occur only after the school board has 
150.18 	adopted a written resolution stating the amount of the transfer and declaring that the 
150.19 	school district's operating capital needs are met.
150.20 		Subd. 2.Lac Qui Parle Valley. Notwithstanding Minnesota Statutes, sections 
150.21 	123B.79; 123B.80; and 475.61, subdivision 4, on June 30, 2009, Independent School 
150.22 	District No. 2853, Lac qui Parle Valley, may permanently transfer up to $221,000 from its 
150.23 	debt redemption fund to its reserved for capital account without making a levy reduction.
150.24 		Subd. 3.Mankato. Notwithstanding Minnesota Statutes, section 123B.79, 
150.25 	123B.80, or 475.61, subdivision 4, on June 30, 2009, Independent School District No. 77, 
150.26 	Mankato, may permanently transfer up to $250,000 from its debt redemption fund to its 
150.27 	undesignated general fund balance without making a levy reduction.
150.28 		Subd. 4.Ortonville. Notwithstanding Minnesota Statutes, section 123B.79, 
150.29 	123B.80, or 475.61, subdivision 4, on June 30, 2009, Independent School District No. 62, 
150.30 	Ortonville, may permanently transfer up to $200,000 from its debt redemption fund to its 
150.31 	reserved for operating capital account without making a levy reduction.
150.32 		Subd. 5.St. Anthony-New Brighton. Notwithstanding Minnesota Statutes, 
150.33 	section 123B.79 or 123B.80, on June 30, 2009, Independent School District No. 282, St. 
150.34 	Anthony-New Brighton, may permanently transfer up to $400,000 from its reserved for 
151.1 	operating capital account to its undesignated general fund balance without making a 
151.2 	levy reduction.

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

151.4 	Sec. 7. APPROPRIATIONS.
 151.5 		Subdivision 1.Department of Education. The sums indicated in this section are 
151.6 	appropriated from the general fund to the Department of Education for the fiscal years 
151.7 	designated.
151.8 		Subd. 2.School lunch. For school lunch aid according to Minnesota Statutes, 
151.9 	section 124D.111, and Code of Federal Regulations, title 7, section 210.17:

151.10		$
	12,688,000
	.....
	2010
	
151.11		$
	13,069,000
	.....
	2011
	
151.12 		Subd. 3.School breakfast. For traditional school breakfast aid under Minnesota 
151.13 	Statutes, section 124D.1158:

151.14		$
	4,978,000
	.....
	2010
	
151.15		$
	5,147,000
	.....
	2011
	
151.16 		Subd. 4.Kindergarten milk. For kindergarten milk aid under Minnesota Statutes, 
151.17 	section 124D.118:

151.18		$
	1,098,000
	.....
	2010
	
151.19		$
	1,120,000
	.....
	2011
	
151.20 		Subd. 5.Summer school service replacement aid. For summer food service 
151.21 	replacement aid under Minnesota Statutes, section 124D.119:

151.22		$
	150,000
	.....
	2010
	
151.23		$
	150,000
	.....
	2011
	
151.24 		Subd. 6.Basic system support. For basic system support grants under Minnesota 
151.25 	Statutes, section 134.355:

151.26		$
	13,570,000
	.....
	2010
	
151.27		$
	13,570,000
	.....
	2011
	
151.28 	The 2010 appropriation includes $1,357,000 for 2009 and $12,213,000 for 2010.
151.29 	The 2011 appropriation includes $1,357,000 for 2010 and $12,213,000 for 2011.
151.30 		Subd. 7.Multicounty, multitype library systems. For grants under Minnesota 
151.31 	Statutes, sections 134.353 and 134.354, to multicounty, multitype library systems:

152.1		$
	1,300,000
	.....
	2010
	
152.2		$
	1,300,000
	.....
	2011
	
152.3 	The 2010 appropriation includes $130,000 for 2009 and $1,170,000 for 2010.
152.4 	The 2011 appropriation includes $130,000 for 2010 and $1,170,000 for 2011.
152.5 		Subd. 8.Electronic library for Minnesota. For statewide licenses to online 
152.6 	databases selected in cooperation with the Minnesota Office of Higher Education for 
152.7 	school media centers, public libraries, state government agency libraries, and public 
152.8 	or private college or university libraries:

152.9		$
	900,000
	.....
	2010
	
152.10		$
	900,000
	.....
	2011
	
152.11 	Any balance in the first year does not cancel but is available in the second year.
152.12 		Subd. 9.Regional library telecommunications aid. For regional library 
152.13 	telecommunications aid under Minnesota Statutes, section 134.355:

152.14		$
	2,300,000
	.....
	2010
	
152.15		$
	2,300,000
	.....
	2011
	
152.16 	The 2010 appropriation includes $230,000 for 2009 and $2,070,000 for 2010.
152.17 	The 2011 appropriation includes $230,000 for 2010 and $2,070,000 for 2011.

152.18 	ARTICLE 6
152.19 	EARLY CHILDHOOD EDUCATION, PREVENTION, SELF-SUFFICIENCY, 
152.20 	AND LIFELONG LEARNING

152.21 	Section 1. [4.046] OFFICE OF EARLY LEARNING.
152.22 	(a) An Office of Early Learning is established to coordinate a high-quality early 
152.23 	childhood system in Minnesota to make such programs more effective and to improve 
152.24 	the educational outcomes of all children and ensure that all children are fully ready for 
152.25 	kindergarten by 2020. The governor must appoint, subject to the advice and consent 
152.26 	of the senate, a director who is a recognized expert in the field of early childhood care 
152.27 	and education who will oversee prekindergarten and child care programs under the 
152.28 	administration of the Departments of Education and Human Services.
152.29 	(b) The director of the Office of Early Learning must report to the commissioners 
152.30 	of education and human services and must coordinate Departments of Education and 
152.31 	Human Services staff efforts to:
152.32 	(1) oversee resources and public funding streams for early childhood education and 
152.33 	child care, and ensure the accountability and coordinated development of early childhood 
152.34 	education and child care services to children from birth to age five;
153.1 	(2) work with the Departments of Education and Human Services and the Minnesota 
153.2 	Early Learning Foundation (MELF) to create common standards for quality early 
153.3 	childhood programming;
153.4 	(3) create a seamless transition from early childhood programs to kindergarten that 
153.5 	aligns with kindergarten through grade 3 standards;
153.6 	(4) develop and oversee an effective data collection system and participate in 
153.7 	the state's longitudinal data collection program to support the necessary functions of a 
153.8 	coordinated system of early childhood education and child care; 
153.9 	(5) plan and implement a quality rating and improvement system to ensure that 
153.10 	Minnesota's children have access to high-quality early learning and care programs in a 
153.11 	range of settings that meet the needs of children and their families and reflects the diversity 
153.12 	of the family values and cultural heritage represented in the community; and
153.13 	(6) prior to the creation of a quality rating and improvement system, employ the 
153.14 	Minnesota quality rating system rating tool in use in fiscal year 2008.

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

153.16 	Sec. 2. Minnesota Statutes 2008, section 119A.52, is amended to read:
153.17 	119A.52 DISTRIBUTION OF APPROPRIATION.
153.18 	(a) The commissioner of education must distribute money appropriated for that 
153.19 	purpose to federally designated Head Start programs to expand services and to serve 
153.20 	additional low-income children. Migrant and Indian reservation programs must be initially 
153.21 	allocated money based on the programs' share of federal funds. The remaining money 
153.22 	must be initially allocated to the remaining local agencies based equally on the agencies' 
153.23 	share of federal funds and on the proportion of eligible children in the agencies' service 
153.24 	area who are not currently being served. A Head Start program must be funded at a per 
153.25 	child rate equal to its contracted, federally funded base level at the start of the fiscal 
153.26 	year. For all agencies without a federal Early Head Start rate, the state average federal 
153.27 	cost per child for Early Head Start applies. In allocating funds under this paragraph, the 
153.28 	commissioner of education must assure that each Head Start program in existence in 
153.29 	1993 is allocated no less funding in any fiscal year than was allocated to that program in 
153.30 	fiscal year 1993. Before paying money to the programs, the commissioner must notify 
153.31 	each program of its initial allocation, and how the money must be used, and the number of 
153.32 	low-income children to be served with the allocation based upon the federally funded per 
153.33 	child rate. Each program must present a plan under section 119A.535. For any program 
153.34 	that cannot utilize its full allocation at the beginning of the fiscal year, the commissioner 
154.1 	must reduce the allocation proportionately. Money available after the initial allocations 
154.2 	are reduced must be redistributed to eligible programs.
154.3 	(b) The commissioner must develop procedures to make payments to programs 
154.4 	based upon the number of children reported to be enrolled during the required time 
154.5 	period of program operations. Enrollment is defined by federal Head Start regulations. 
154.6 	The procedures must include a reporting schedule, corrective action plan requirements, 
154.7 	and financial consequences to be imposed on programs that do not meet full enrollment 
154.8 	after the period of corrective action. Programs reporting chronic underenrollment, as 
154.9 	defined by the commissioner, will have their subsequent program year allocation reduced 
154.10 	proportionately. Funds made available by prorating payments and allocations to programs 
154.11 	with reported underenrollment will be made available to the extent funds exist to fully 
154.12 	enrolled Head Start programs through a form and manner prescribed by the department.
154.13 	(c) Programs with approved innovative initiatives that target services to high-risk 
154.14 	populations, including homeless families and families living in homeless shelters and 
154.15 	transitional housing, are exempt from the procedures in paragraph (b). This exemption 
154.16 	does not apply to entire programs. The exemption applies only to approved innovative 
154.17 	initiatives that target services to high-risk populations, including homeless families and 
154.18 	families living in homeless shelters and transitional housing.

154.19 	Sec. 3. [124D.082] PREKINDERGARTEN THROUGH GRADE 3 PROGRAM.
154.20 		Subdivision 1.Establishment. A school district, charter school, or collaboration 
154.21 	of school districts and charter schools may establish a prekindergarten through grade 3 
154.22 	educational program that serves children three years old through grade 3.
154.23 		Subd. 2.Program components. The program may strive to include the following:
154.24 	(1) provide a minimum of 12 hours per week prekindergarten program for children 
154.25 	three and four years old;
154.26 	(2) provide a full school day of kindergarten;
154.27 	(3) align curriculum and child assessment to the early childhood indicators of 
154.28 	progress and K-12 standards within and across grades;
154.29 	(4) provide a licensed teacher or the equivalent for each grade kindergarten through 
154.30 	grade 3 and prekindergarten for children three and four years old;
154.31 	(5) promote participation in ongoing intentional professional development and offer 
154.32 	curriculum and classroom planning time;
154.33 	(6) provide classroom environments that promote high-quality teacher-child 
154.34 	interactions that are supportive of student learning;
155.1 	(7) maintain student-staff ratios that are 20-to-one in prekindergarten through third 
155.2 	grade;
155.3 	(8) use observational performance-based child assessments for children ages three 
155.4 	and four years and in kindergarten and grades 1 and 2 to inform classroom planning, 
155.5 	curriculum, and instruction, and to inform parents of child progress;
155.6 	(9) conduct a readiness assessment on entering kindergarteners that aligns with the 
155.7 	state kindergarten readiness assessment and provide continuous observational assessment 
155.8 	to measure student progress toward achievement of developmentally appropriate skills 
155.9 	and knowledge;
155.10 	(10) develop and identify student benchmarks aligned to state standards for students' 
155.11 	continued progress in kindergarten and grades 1 and 2; and
155.12 	(11) demonstrate commitment of and leadership by school principals to ensure 
155.13 	the necessary tools and systems are in place to support prekindergarten through grade 
155.14 	3 continuum.
155.15 		Subd. 3.Financing. School districts or charter schools that establish a program 
155.16 	under subdivision 1 may allocate revenues attributable to students in kindergarten through 
155.17 	grade 3 to support the program. If a school district has a provisional rating under section 
155.18 	124D.143, or the program has been rated at a three-star or higher quality level under the 
155.19 	quality rating and improvement system as provided in section 124D.142, the program may 
155.20 	accept prekindergarten allowances under section 124D.143, to support the program for 
155.21 	children aged three and four years. The program may establish fees to support children 
155.22 	aged three and four years.

155.23 	Sec. 4. Minnesota Statutes 2008, section 124D.13, subdivision 13, is amended to read:
155.24 		Subd. 13.Plan and Program data submission requirements. (a) An early 
155.25 	childhood family education program must submit a biennial plan addressing the 
155.26 	requirements of subdivision 2 for approval by the commissioner. The plan must also 
155.27 	describe how the program provides parenting education and ensures participation of 
155.28 	families representative of the school district. A school district must submit the plan for 
155.29 	approval by the commissioner in the form and manner prescribed by the commissioner. 
155.30 	One-half of districts, as determined by the commissioner, must first submit a biennial plan 
155.31 	by April 1, 2009, and the remaining districts must first submit a plan by April 1, 2010.
155.32 	(b) Districts receiving early childhood family education revenue under section 
155.33 	124D.135 must submit annual program data to the department by July 15 in the form and 
155.34 	manner prescribed by the commissioner.
156.1 	(c) Beginning with levies for fiscal year 2011, a school district must submit its annual 
156.2 	program data to the department before it may certify a levy under section 124D.135. 
156.3 	Districts selected by the commissioner to submit a biennial plan by April 1, 2009, must 
156.4 	also have an approved plan on file with the commissioner before certifying a levy under 
156.5 	section 124D.135 for fiscal year 2011. Beginning with levies for fiscal year 2012, all 
156.6 	districts must submit annual program data and have an approved biennial plan on file with 
156.7 	the commissioner before certifying a levy under section 124D.135.

156.8 	Sec. 5. Minnesota Statutes 2008, section 124D.135, subdivision 3, is amended to read:
156.9 		Subd. 3.Early childhood family education levy. (a) By September 30 of each 
156.10 	year, the commissioner shall establish a tax rate for early childhood family education 
156.11 	revenue that raises $22,135,000 in each fiscal year. If the amount of the early childhood 
156.12 	family education levy would exceed the early childhood family education revenue, the 
156.13 	early childhood family education levy must equal the early childhood family education 
156.14 	revenue. Beginning with levies for fiscal year 2011, a district may not certify an early 
156.15 	childhood family education levy unless it has met the annual program data reporting and 
156.16 	biennial plan requirements under section 124D.13, subdivision 13.
156.17 	(b) Notwithstanding paragraph (a), for fiscal year 2009 only, the commissioner shall 
156.18 	establish a tax rate for early education revenue that raises $13,565,000.

156.19 	Sec. 6. [124D.142] QUALITY RATING AND IMPROVEMENT SYSTEM.
156.20 	(a) There is established a quality rating and improvement system to ensure that 
156.21 	Minnesota's children have access to high-quality early learning and care programs in a 
156.22 	range of settings so that they are fully ready for kindergarten by 2020. Creation of a 
156.23 	standards-based quality rating and improvement system includes:
156.24 	(1) establishing an early care and education framework that improves quality 
156.25 	opportunities in order to improve the educational outcomes of children so that they are 
156.26 	ready for school. The framework shall be based on the Minnesota quality rating system 
156.27 	rating tool and a common set of child outcome standards and informed by evaluation 
156.28 	results;
156.29 	(2) using the framework as a tool to increase the number of publicly funded and 
156.30 	regulated early learning and care services in both public and private market programs that 
156.31 	are high quality. If a program or provider chooses to participate, the program or provider 
156.32 	will be rated and will receive public funding associated with the rating. The state shall 
156.33 	develop a plan to link future early learning and care state funding to the framework in a 
156.34 	manner that complies with federal requirements; and
157.1 	(3) using the framework to track progress toward statewide access to high-quality 
157.2 	early learning and care programs, progress toward the number of low-income children 
157.3 	whose parents can access quality programs, and progress toward increasing the number 
157.4 	of children who are fully prepared to enter kindergarten.
157.5 	(b) In planning and implementing a statewide quality rating and improvement 
157.6 	system in paragraph (a), the state shall assess the cost of administering and staffing the 
157.7 	system and collecting assessment and evaluation data of the early learning and care 
157.8 	system, including ensuring children are fully ready for kindergarten. This cost assessment 
157.9 	shall be provided to the early childhood learning education finance committees of the 
157.10 	legislature by January 15, 2010.
157.11 	(c) Prior to the creation of a statewide quality rating and improvement system in 
157.12 	paragraph (a), the state shall employ the Minnesota quality rating system rating tool 
157.13 	in use in fiscal year 2008 with its modification as a result of the evaluation results of 
157.14 	the pilot project.

157.15 	EFFECTIVE DATE. This section is effective July 1, 2009.

157.16 	Sec. 7. [124D.143] PREKINDERGARTEN FINANCE ALLOWANCES.
157.17 		Subdivision 1.Early childhood allowance locations. In fiscal year 2010 and later, 
157.18 	the commissioners of human services and education shall continue three prekindergarten 
157.19 	exploratory projects located in the city of St. Paul, Hennepin County, and Blue Earth 
157.20 	County that are conducted in partnership with the Minnesota Early Learning Foundation 
157.21 	to promote children's school readiness. In fiscal year 2011 and later, the commissioners 
157.22 	of human services and education shall establish additional prekindergarten projects to 
157.23 	be conducted in partnership with the Minnesota Early Learning Foundation to promote 
157.24 	children's school readiness. In fiscal year 2011, the additional prekindergarten project sites 
157.25 	shall be located in Otter Tail County, Itasca County, St. Louis County, and a consortium of 
157.26 	Benton, Stearns, and Sherburne Counties.
157.27 		Subd. 2.Allowance eligibility. Parents or legal guardians with incomes less than 
157.28 	or equal to 46 percent of the state median income are eligible to receive allowances to 
157.29 	pay for their children's education in a quality early education program, in an amount not 
157.30 	to exceed $4,000 per child per year. The allowance must be used during the 12 months 
157.31 	following receipt of the allowance by the claimant for a child who is age three or four on 
157.32 	September 1 to pay for services designed to promote school readiness in a quality early 
157.33 	care and education setting. A claimant may use the allowance to pay fees or charges 
157.34 	associated with their child's education in a quality early care and education setting. A 
157.35 	quality setting is one that meets the standards in subdivision 3.
158.1 		Subd. 2a.Automatic eligibility. For the purpose of establishing eligibility for the 
158.2 	prekindergarten education allowance, the commissioners of education and human services 
158.3 	must accept children identified in other public funding eligibility processes, including, but 
158.4 	not limited to, public school programs, Head Start, and child care assistance programs. 
158.5 	In addition, the commissioners of education and human services must make a sample 
158.6 	form available to providers that can be used to determine potential eligible children. The 
158.7 	commissioner must submit a prekindergarten education allowance to an eligible child 
158.8 	who used this automatic process.
158.9 		Subd. 3.Quality standards. (a) Until a quality rating and improvement system 
158.10 	is established under section 124D.142, a provider may satisfy the quality rating system 
158.11 	requirements and be deemed eligible to receive prekindergarten education allowances 
158.12 	if the provider has received a provisional quality rating system approval from either 
158.13 	the Department of Human Services or the Department of Education, or has received a 
158.14 	three-star or higher qualify rating under the Minnesota Early Learning Foundation quality 
158.15 	rating system. An eligible participant must agree to accept a prekindergarten allowance 
158.16 	to pay for services.
158.17 	(b) A quality early care and education setting for this section is a service program 
158.18 	that receives a three-star or higher quality rating based on the quality rating and 
158.19 	improvement system established according to section 124D.142.
158.20 	(c) For the purposes of receiving a provisional quality rating, a child care program or 
158.21 	provider must be approved by the commissioner of human services and a school-based 
158.22 	program or a Head Start program must be approved by the commissioner of education. 
158.23 	Programs and providers must apply for approval in the form and manner prescribed by the 
158.24 	commissioners. To receive approval, the commissioners must determine that applicants:
158.25 	(1) use research-based curricula that are aligned with the education standards 
158.26 	under section 120B.021, instruction, and child assessment instruments approved by the 
158.27 	Department of Education and the Department of Human Services, in consultation with 
158.28 	the Minnesota Early Learning Foundation;
158.29 	(2) provide a program of sufficient intensity and duration to improve the school 
158.30 	readiness of participating children;
158.31 	(3) provide opportunities for parent involvement; and 
158.32 	(4) meet other research-based criteria determined necessary by the commissioners.
158.33 	(d) Notwithstanding paragraph (b), for 2010 and 2011 only, Head Start programs 
158.34 	meeting Head Start performance standards and accredited child care centers are granted 
158.35 	a provisional quality rating for the purposes of receiving a prekindergarten allowance 
158.36 	under this section.
159.1 	(e) Notwithstanding paragraph (b), for fiscal years 2010 and 2011 only, school 
159.2 	readiness programs under section 124D.15 are granted a provisional quality rating for the 
159.3 	purposes of receiving a prekindergarten allowance under this section. 
159.4 	(f) Upon completion of the quality rating system pilot evaluation, the commissioner 
159.5 	shall review the Head Start and school readiness programs that received initial provisional 
159.6 	quality ratings to establish an appropriate star-based rating.
159.7 	(g) A provider deemed eligible to receive a prekindergarten education allowance 
159.8 	under paragraphs (a) to (c) may use the allowance to enhance services above the current 
159.9 	quality levels, increase the duration of services provided, or expand the number of children 
159.10 	to whom services are provided.
159.11 	(h) School district-based and Head Start programs may combine prekindergarten 
159.12 	allowances under this section with resources from other programs to offer services to 
159.13 	more participants.
159.14 	(i) For fiscal years 2010 and 2011 only, when no quality program is available, a 
159.15 	recipient may direct the prekindergarten allowance to a provider or program for school 
159.16 	readiness quality improvements that will make the provider or program eligible for a 
159.17 	quality rating according the quality rating system. Allowable expenditures that will 
159.18 	increase the capacity of the provider or program to help children be ready for school 
159.19 	include purchase of curricula and assessment tools, training on the use of curriculum and 
159.20 	assessment tools, purchase of materials to improve the learning environment, or other 
159.21 	expenditures approved by the commissioner of human services for child care providers 
159.22 	and the commissioner of education for school readiness programs.
159.23 		Subd. 4.Eligibility; applications. Eligible families must have incomes less than or 
159.24 	equal to 46 percent of the state median income. Allowances paid to families under this 
159.25 	program may not be counted as earned income for the purposes of medical assistance, 
159.26 	MinnesotaCare, MFIP, child care assistance, or Head Start programs. All children whose 
159.27 	parents meet the income requirements are eligible to receive prekindergarten allowances 
159.28 	under this section.

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

159.30 	Sec. 8. Minnesota Statutes 2008, section 124D.15, subdivision 3, is amended to read:
159.31 		Subd. 3.Program requirements. A school readiness program provider must:
159.32 	(1) assess each child's cognitive skills with a comprehensive, culturally relevant 
159.33 	child assessment instrument when the child enters and again before the child leaves the 
159.34 	program to inform program planning and parents and promote kindergarten readiness;
160.1 	(2) provide comprehensive program content and intentional instructional practice 
160.2 	aligned with the state early childhood learning guidelines and kindergarten standards and 
160.3 	based on early childhood research and professional practice that is focused on children's 
160.4 	cognitive, social, emotional, and physical skills and development and prepares children 
160.5 	for the transition to kindergarten, including early literacy skills;
160.6 	(3) coordinate appropriate kindergarten transition with parents and kindergarten 
160.7 	teachers;
160.8 	(3) (4) arrange for early childhood screening and appropriate referral;
160.9 	(4) (5) involve parents in program planning and decision making;
160.10 	(5) (6) coordinate with relevant community-based services; and
160.11 	(6) (7) cooperate with adult basic education programs and other adult literacy 
160.12 	programs;
160.13 	(8) ensure staff-child ratios of one to ten and maximum group size of 20 children 
160.14 	with the first staff required to be a teacher; 
160.15 	(9) serve children a minimum of 12 hours per week; and
160.16 	(10) have teachers knowledgeable in early childhood curriculum content, cultural 
160.17 	competency, assessment, and instruction.

160.18 	Sec. 9. Minnesota Statutes 2008, section 124D.19, subdivision 10, is amended to read:
160.19 		Subd. 10.Youth service programs. (a) A school board may offer, as part of a 
160.20 	community education program with a youth development program, a youth service 
160.21 	program that provides young people with meaningful opportunities to become involved in 
160.22 	their community, develop individual capabilities, make career connections, seek support 
160.23 	networks and services, become active citizens, and address community needs through 
160.24 	youth service. The board may award up to one credit, or the equivalent, toward graduation 
160.25 	for a pupil who completes the youth service requirements of the district. The community 
160.26 	education advisory council, after considering the results of the commissioner's study 
160.27 	under section 124D.50, subdivision 1, must design the program in cooperation with the 
160.28 	district planning, evaluating and reporting committee and local organizations that train 
160.29 	volunteers or need volunteers' services.  
160.30 	(b) Programs must include:
160.31 	(1) preliminary training for pupil volunteers conducted, when possible, by 
160.32 	organizations experienced in such training;
160.33 	(2) supervision of the pupil volunteers to ensure appropriate placement and adequate 
160.34 	learning opportunity;
161.1 	(3) sufficient opportunity, in a positive setting for human development, for pupil 
161.2 	volunteers to develop general skills in preparation for employment, to enhance self-esteem 
161.3 	and self-worth, and to give genuine service to their community;
161.4 	(4) integration of academic learning with the service experience; and
161.5 	(5) integration of youth community service with elementary and secondary 
161.6 	curriculum.
161.7 	(c) Youth service projects include, but are not limited to, the following:
161.8 	(1) human services for the elderly, including home care and related services;
161.9 	(2) tutoring and mentoring;
161.10 	(3) training for and providing emergency services;
161.11 	(4) services at extended day programs;
161.12 	(5) environmental services; and
161.13 	(6) service-learning programs in which schools, including postsecondary schools, 
161.14 	and employers work together with young people to provide them with meaningful 
161.15 	opportunities for community service and with the academic and technical skills that 
161.16 	employers require.
161.17 	(d) The commissioner shall maintain a list of acceptable projects with a description 
161.18 	of each project. A project that is not on the list must be approved by the commissioner.
161.19 	(e) A youth service project must have a community sponsor that may be a 
161.20 	governmental unit or nonprofit organization. To assure that pupils provide additional 
161.21 	services, each sponsor must assure that pupil services do not displace employees or reduce 
161.22 	the workload of any employee.
161.23 	(f) (e) The commissioner shall assist districts in planning youth service programs, 
161.24 	implementing programs, and developing recommendations for obtaining community 
161.25 	sponsors.

161.26 	Sec. 10. Minnesota Statutes 2008, section 124D.19, subdivision 14, is amended to read:
161.27 		Subd. 14.Community education; annual report. Each district offering a 
161.28 	community education program under this section must annually report to the department 
161.29 	information regarding the cost per participant and cost per contact hour for each 
161.30 	community education program, including youth after-school enrichment programs, that 
161.31 	receives aid or levy. The department must include cost per participant and cost per contact 
161.32 	hour information by program in the community education annual report.

162.1 	Sec. 11. Minnesota Statutes 2008, section 124D.522, is amended to read:
162.2 	124D.522 ADULT BASIC EDUCATION SUPPLEMENTAL SERVICE 
162.3 	GRANTS.
162.4 	(a) The commissioner, in consultation with the policy review task force under 
162.5 	section 124D.521, may make grants to nonprofit organizations to provide services that 
162.6 	are not offered by a district adult basic education program or that are supplemental to 
162.7 	either the statewide adult basic education program, or a district's adult basic education 
162.8 	program. The commissioner may make grants for: staff development for adult basic 
162.9 	education teachers and administrators; training for volunteer tutors; training, services, and 
162.10 	materials for serving disabled students through adult basic education programs; statewide 
162.11 	promotion of adult basic education services and programs; development and dissemination 
162.12 	of instructional and administrative technology for adult basic education programs; 
162.13 	programs which primarily serve communities of color; adult basic education distance 
162.14 	learning projects, including television instruction programs; and other supplemental 
162.15 	services to support the mission of adult basic education and innovative delivery of adult 
162.16 	basic education services.  
162.17 	(b) The commissioner must establish eligibility criteria and grant application 
162.18 	procedures. Grants under this section must support services throughout the state, focus on 
162.19 	educational results for adult learners, and promote outcome-based achievement through 
162.20 	adult basic education programs. Beginning in fiscal year 2002, the commissioner may 
162.21 	make grants under this section from the state total adult basic education aid set aside for 
162.22 	supplemental service grants under section 124D.531. Up to one-fourth of the appropriation 
162.23 	for supplemental service grants must be used for grants for adult basic education programs 
162.24 	to encourage and support innovations in adult basic education instruction and service 
162.25 	delivery. A grant to a single organization cannot exceed $100,000 20 percent of the total 
162.26 	supplemental services aid. Nothing in this section prevents an approved adult basic 
162.27 	education program from using state or federal aid to purchase supplemental services.  

162.28 	Sec. 12. Minnesota Statutes 2008, section 299A.297, is amended to read:
162.29 	299A.297 OTHER DUTIES.
162.30 	The commissioner of public safety, in consultation with the Chemical Abuse and 
162.31 	Violence Prevention Council, shall:
162.32 	(1) provide information and assistance upon request to school preassessment teams 
162.33 	established under section 121A.26and school and community advisory teams established 
162.34 	under section 121A.27;  
163.1 	(2) provide information and assistance upon request to the State Board of Pharmacy 
163.2 	with respect to the board's enforcement of chapter 152;
163.3 	(3) cooperate with and provide information and assistance upon request to the 
163.4 	Alcohol and Other Drug Abuse Section in the Department of Human Services;
163.5 	(4) coordinate the policy of the office with that of the Narcotic Enforcement Unit in 
163.6 	the Bureau of Criminal Apprehension; and
163.7 	(5) coordinate the activities of the regional drug task forces, provide assistance and 
163.8 	information to them upon request, and assist in the formation of task forces in areas of 
163.9 	the state in which no task force operates.

163.10 	Sec. 13. AMERICAN RECOVERY AND REINVESTMENT ACT OF 2009 
163.11 	FUNDS FOR EARLY EDUCATION.
 163.12 		Subdivision 1.Policy. It is the policy of the state of Minnesota that school districts 
163.13 	and charter schools, in partnership with local community partners, should focus the 
163.14 	spending of available resources to ensure that Minnesota's children are fully ready for 
163.15 	kindergarten.
163.16 		Subd. 2.Encouragement. The state of Minnesota encourages school districts 
163.17 	and charter schools to work with community partners to direct a portion of the 
163.18 	increased revenue that districts and charters will receive from the American Recovery 
163.19 	and Reinvestment Act of 2009 to ensure that Minnesota's children are fully ready for 
163.20 	kindergarten.
163.21 		Subd. 3.Report. Every school district and charter school that receives federal title 
163.22 	I funding must report to the Department of Education, in a manner prescribed by the 
163.23 	commissioner, on how it used its increased funding in fiscal years 2010 and 2011 from the 
163.24 	American Recovery and Reinvestment Act of 2009 to ensure that Minnesota's children are 
163.25 	fully ready for kindergarten. The commissioner must summarize the results of the district 
163.26 	and charter school reports under this subdivision, and report the findings to the education 
163.27 	finance committees of the legislature by January 15, 2012.

163.28 	Sec. 14. TRANSFER OF DUTIES.
 163.29 	Responsibilities of the commissioner of education for early childhood education 
163.30 	programs and financing under Minnesota Statutes, sections 124D.082; 124D.13; 124D.135; 
163.31 	124D.141; 124D.142; 124D.143; 124D.15; 124D.16; and 124D.162 are transferred to the 
163.32 	Office of Early Learning. All positions in the Department of Education related to early 
163.33 	childhood education are transferred to the Office of Early Learning. Minnesota Statutes, 
163.34 	section 15.039, applies to the transfer of the responsibilities in this section.

164.1 	Sec. 15. APPROPRIATIONS.
 164.2 		Subdivision 1.Department of Education. The sums indicated in this section are 
164.3 	appropriated from the general fund to the Department of Education for the fiscal years 
164.4 	designated.
164.5 		Subd. 2.School readiness. For revenue for school readiness programs under 
164.6 	Minnesota Statutes, sections 124D.15 and 124D.16:

164.7		$
	10,095,000
	.....
	2010
	
164.8		$
	10,095,000
	.....
	2011
	
164.9 	The 2010 appropriation includes $1,009,000 for 2009 and $9,086,000 for 2010.
164.10 	The 2011 appropriation includes $1,009,000 for 2010 and $9,086,000 for 2011.
164.11 		Subd. 3.Early childhood family education aid. For early childhood family 
164.12 	education aid under Minnesota Statutes, section 124D.135:

164.13		$
	22,955,000
	.....
	2010
	
164.14		$
	22,547,000
	.....
	2011
	
164.15 	The 2010 appropriation includes $3,020,000 for 2009 and $19,935,000 for 2010.
164.16 	The 2011 appropriation includes $2,214,000 for 2010 and $20,333,000 for 2011.
164.17 		Subd. 4.Health and developmental screening aid. For health and developmental 
164.18 	screening aid under Minnesota Statutes, sections 121A.17 and 121A.19:

164.19		$
	3,694,000
	.....
	2010
	
164.20		$
	3,800,000
	.....
	2011
	
164.21 	The 2010 appropriation includes $367,000 for 2009 and $3,327,000 for 2010.
164.22 	The 2011 appropriation includes $369,000 for 2010 and $3,431,000 for 2011.
164.23 		Subd. 5.Head Start program. For Head Start programs under Minnesota Statutes, 
164.24 	section 119A.52:

164.25		$
	20,100,000
	.....
	2010
	
164.26		$
	20,100,000
	.....
	2011
	
164.27 	Any balance in the first year does not cancel but is available in the second year.
164.28 		Subd. 6.Educate parents partnership. For the educate parents partnership under 
164.29 	Minnesota Statutes, section 124D.129:

164.30		$
	50,000
	.....
	2010
	
164.31		$
	50,000
	.....
	2011
	
164.32 	Any balance in the first year does not cancel but is available in the second year.
165.1 		Subd. 7.Kindergarten entrance assessment initiative and intervention 
165.2 	program. For the kindergarten entrance assessment initiative and intervention program 
165.3 	under Minnesota Statutes, section 124D.162:

165.4		$
	287,000
	.....
	2010
	
165.5		$
	287,000
	.....
	2011
	
165.6 	Any balance in the first year does not cancel but is available in the second year.
165.7 		Subd. 8.Parent aware star rating tool. For the parent aware star rating tool:

165.8		$
	250,000
	.....
	2010
	
165.9		$
	250,000
	.....
	2011
	
165.10 	This appropriation must be used for the administration of the rating tool and for 
165.11 	onsite observations. The base for subsequent years is $500,000.
165.12 		Subd. 9.Prekindergarten finance allowances. For grants to prekindergarten 
165.13 	finance allowances under Minnesota Statutes, section 124D.143.

165.14		$
	6,000,000
	.....
	2010
	
165.15		$
	8,000,000
	.....
	2011
	
165.16 	Of this amount, up to ten percent of the annual appropriation is for the administration 
165.17 	of the Office of Early Learning.
165.18 	In fiscal year 2010, this appropriation is for grants to the city of St. Paul, Hennepin 
165.19 	County, and Blue Earth County for scholarship projects in collaboration with the 
165.20 	Minnesota Early Learning Foundation to promote children's school readiness. In fiscal 
165.21 	year 2011 and later, this appropriation is for grants to the city of St. Paul, Hennepin 
165.22 	County, Blue Earth County, Otter Tail County, Itasca County, St. Louis County, and a 
165.23 	consortium of Benton, Stearns, and Sherburne Counties. The appropriation is available 
165.24 	until expended. This appropriation is part of the base budget for subsequent fiscal years. 
165.25 	For fiscal year 2011 and later, strong consideration for expanded eligibility in Hennepin 
165.26 	County must be given to participants who have completed an accredited home visiting 
165.27 	program.
165.28 		Subd. 10.Community education aid. For community education aid under 
165.29 	Minnesota Statutes, section 124D.20:

165.30		$
	585,000
	.....
	2010
	
165.31		$
	467,000
	.....
	2011
	
165.32 	The 2010 appropriation includes $73,000 for 2009 and $512,000 for 2010.
165.33 	The 2011 appropriation included $56,000 for 2010 and $411,000 for 2011.
166.1 		Subd. 11.Adults with disabilities program aid. For adults with disabilities 
166.2 	programs under Minnesota Statutes, section 124D.56:

166.3		$
	710,000
	.....
	2010
	
166.4		$
	710,000
	.....
	2011
	
166.5 	The 2010 appropriation includes $71,000 for 2009 and $639,000 for 2010.
166.6 	The 2011 appropriation includes $71,000 for 2010 and $639,000 for 2011.
166.7 		Subd. 12.Hearing-impaired adults. For programs for hearing-impaired adults 
166.8 	under Minnesota Statutes, section 124D.57:

166.9		$
	70,000
	.....
	2010
	
166.10		$
	70,000
	.....
	2011
	
166.11 		Subd. 13.School-age care revenue. For extended day aid under Minnesota 
166.12 	Statutes, section 124D.22:

166.13		$
	1,000
	.....
	2010
	
166.14		$
	1,000
	.....
	2011
	
166.15 	The 2010 appropriation includes $0 for 2009 and $1,000 for 2010.
166.16 	The 2011 appropriation includes $0 for 2010 and $1,000 for 2011.
166.17 		Subd. 14.Adult basic education aid. For adult basic education aid under 
166.18 	Minnesota Statutes:

166.19		$
	42,975,000
	.....
	2010
	
166.20		$
	44,258,000
	.....
	2011
	
166.21 	The 2010 appropriation includes $4,187,000 for 2009 and $38,788,000 for 2010.
166.22 	The 2011 appropriation includes $4,309,000 for 2010 and $39,949,000 for 2011.
166.23 		Subd. 15.GED tests. For payment of 60 percent of the costs of GED tests under 
166.24 	Minnesota Statutes, section 124D.55:

166.25		$
	125,000
	.....
	2010
	
166.26		$
	125,000
	.....
	2011
	
166.27 	Any balance in the first year does not cancel but is available in the second year.

166.28 	Sec. 16. REVISOR'S INSTRUCTION.
 166.29 	In the next and subsequent editions of Minnesota Statutes, the revisor of statutes 
166.30 	shall:
167.1 	(1) substitute the term "the director" for "commissioner" and "commissioner of 
167.2 	education" in the following: Minnesota Statutes, sections 124D.082; 124D.13; 124D.135; 
167.3 	124D.141; 124D.142; 124D.143; 124D.15; 124D.16; and 124D.162; and 
167.4 	(2) substitute the term "Office of Early Learning" for the term "Department of 
167.5 	Education" in the following: Minnesota Statutes, sections 124D.082; 124D.13; 124D.135; 
167.6 	124D.141; 124D.142; 124D.143; 124D.15; 124D.16; and 124D.162.

167.7 	Sec. 17.  REPEALER.
 167.8 	Minnesota Statutes 2008, section 121A.27, is repealed.

167.9 	ARTICLE 7
167.10 	STATE AGENCIES

167.11 	Section 1. Minnesota Statutes 2008, section 125A.62, subdivision 8, is amended to 
167.12 	read:
167.13 		Subd. 8.Grants and gifts. The board, through the chief administrators of the 
167.14 	academies, may apply for all competitive grants administered by agencies of the state and 
167.15 	other government or nongovernment sources. Application may not be made for grants 
167.16 	over which the board has discretion. Any money so received is hereby appropriated and 
167.17 	dedicated for the purpose for which it is granted.

167.18 	Sec. 2. Minnesota Statutes 2008, section 127A.08, is amended by adding a subdivision 
167.19 	to read:
167.20 		Subd. 5.Grants and gifts. The commissioner may apply for and receive grants 
167.21 	and gifts administered by agencies of the state and other government or nongovernment 
167.22 	sources. Any money received is hereby appropriated and dedicated for the purpose for 
167.23 	which it is granted.
167.24 	The commissioner must annually report by February 15 a list of all grants and gifts 
167.25 	received and applied for under this subdivision.

167.26 	Sec. 3. APPROPRIATIONS.
 167.27 		Subdivision 1.Department of Education. Unless otherwise indicated, the sums 
167.28 	indicated in this section are appropriated from the general fund to the Department of 
167.29 	Education for the fiscal years designated.
167.30 		Subd. 2.Department. (a) For the Department of Education:

168.1		$
	21,042,000
	.....
	2010
	
168.2		$
	21,042,000
	.....
	2011
	
168.3 	Any balance in the first year does not cancel but is available in the second year.
168.4 	(b) $260,000 each year is for the Minnesota Children's Museum.
168.5 	(c) $41,000 each year is for the Minnesota Academy of Science.
168.6 	(d) $632,000 each year is for the Board of Teaching. Any balance in the first year 
168.7 	does not cancel but is available in the second year. 
168.8 	(e) $171,000 each year is for the Board of School Administrators. Any balance in 
168.9 	the first year does not cancel but is available in the second year.
168.10 	(f) Unless otherwise specified in this act, the expenditures of federal grants and 
168.11 	aids as shown in the biennial budget document and its supplements are approved and 
168.12 	appropriated and shall be spent as indicated.
168.13 	(g) $40,000 each year is for an early hearing loss intervention coordinator under 
168.14 	Minnesota Statutes, section 125A.63, subdivision 5. If the department expends federal 
168.15 	funds to employ a hearing loss coordinator under Minnesota Statutes, section 125.63, 
168.16 	subdivision 5, then the appropriation under this paragraph is reallocated for purposes of 
168.17 	employing a world languages coordinator.
168.18 	(h) $50,000 each year is for the Duluth Children's Museum.
168.19 	(i) None of the amounts appropriated under this subdivision may be used for 
168.20 	Minnesota's Washington, D.C., office.
168.21 		Subd. 3.Board of Teaching; licensure by portfolio. For the Board of Teaching 
168.22 	for licensure by portfolio:

168.23		$
	17,000
	.....
	2010
	
168.24		$
	17,000
	.....
	2011
	
168.25 	This appropriation is from the education licensure portfolio account of the special 
168.26 	revenue fund.

168.27 	Sec. 4. APPROPRIATIONS; MINNESOTA STATE ACADEMIES.
 168.28 	The sums indicated in this section are appropriated from the general fund to the 
168.29 	Minnesota State Academies for the Deaf and the Blind for the fiscal years designated:

168.30		$
	11,554,000
	.....
	2010
	
168.31		$
	11,554,000
	.....
	2011
	
168.32 	Any balance in the first year does not cancel but is available in the second year.

168.33 	Sec. 5. APPROPRIATIONS; PERPICH CENTER FOR ARTS EDUCATION.
 169.1 	The sums indicated in this section are appropriated from the general fund to the 
169.2 	Perpich Center for Arts Education for the fiscal years designated:

169.3		$
	6,874,000
	.....
	2010
	
169.4		$
	6,874,000
	.....
	2011
	
169.5 	Any balance in the first year does not cancel but is available in the second year.

169.6 	ARTICLE 8
169.7 	EDUCATION FORECAST ADJUSTMENTS
169.8 	A. GENERAL EDUCATION

169.9 	Section 1. Laws 2007, chapter 146, article 1, section 24, subdivision 2, as amended by 
169.10 	Laws 2008, chapter 363, article 3, section 1, is amended to read:
169.11 		Subd. 2. General education aid. For general education aid under Minnesota 
169.12 	Statutes, section 126C.13, subdivision 4:

169.13		$ 
	5,600,647,000
	..... 
	2008 
	
169.14
169.15		$ 
	5,649,098,000
5,644,263,000
	..... 
	2009 
	
169.16 	The 2008 appropriation includes $536,251,000 for 2007 and $5,064,396,000 for 
169.17 	2008.
169.18 	The 2009 appropriation includes $543,752,000 $533,760,000 for 2008 and 
169.19 	$5,105,346,000 $5,110,503,000 for 2009.

169.20 	Sec. 2. Laws 2007, chapter 146, article 1, section 24, subdivision 4, as amended by 
169.21 	Laws 2008, chapter 363, article 3, section 3, is amended to read:
169.22 		Subd. 4. Enrollment options transportation. For transportation of pupils attending 
169.23 	postsecondary institutions under Minnesota Statutes, section 124D.09, or for transportation 
169.24 	of pupils attending nonresident districts under Minnesota Statutes, section 124D.03:

169.25		$ 
	48,000
	..... 
	2008 
	
169.26		$ 
	50,00045,000
	..... 
	2009 

169.27 	Sec. 3. Laws 2007, chapter 146, article 1, section 24, subdivision 5, as amended by 
169.28 	Laws 2008, chapter 363, article 3, section 4, is amended to read:
169.29 		Subd. 5. Abatement revenue. For abatement aid under Minnesota Statutes, section 
169.30 	127A.49:

169.31		$ 
	1,333,000
	..... 
	2008 
	
169.32
169.33		$ 
	1,629,000
1,407,000
	..... 
	2009 
	
170.1 	The 2008 appropriation includes $76,000 for 2007 and $1,257,000 for 2008.
170.2 	The 2009 appropriation includes $139,000 for 2008 and $1,490,000 $1,268,000
170.3 	for 2009.

170.4 	Sec. 4. Laws 2007, chapter 146, article 1, section 24, subdivision 6, as amended by 
170.5 	Laws 2008, chapter 363, article 3, section 5, is amended to read:
170.6 		Subd. 6. Consolidation transition. For districts consolidating under Minnesota 
170.7 	Statutes, section 123A.485:

170.8		$ 
	240,000
	..... 
	2008 
	
170.9		$ 
	339,00021,000
	..... 
	2009 
	
170.10 	The 2008 appropriation includes $43,000 for 2007 and $197,000 for 2008.
170.11 	The 2009 appropriation includes $21,000 for 2008 and $318,000 $0 for 2009.

170.12 	Sec. 5. Laws 2007, chapter 146, article 1, section 24, subdivision 7, as amended by 
170.13 	Laws 2008, chapter 363, article 3, section 6, is amended to read:
170.14 		Subd. 7. Nonpublic pupil education aid. For nonpublic pupil education aid under 
170.15 	Minnesota Statutes, sections 123B.40 to 123B.43, and 123B.87:

170.16		$ 
	15,601,000
	..... 
	2008 
	
170.17
170.18		$ 
	16,608,000
16,271,000
	..... 
	2009 
	
170.19 	The 2008 appropriation includes $1,214,000 for 2007 and $14,387,000 for 2008.
170.20 	The 2009 appropriation includes $1,598,000 $1,439,000 for 2008 and $15,010,000
170.21 	$14,832,000 for 2009.

170.22 	Sec. 6. Laws 2007, chapter 146, article 1, section 24, subdivision 8, as amended by 
170.23 	Laws 2008, chapter 363, article 3, section 7, is amended to read:
170.24 		Subd. 8. Nonpublic pupil transportation. For nonpublic pupil transportation aid 
170.25 	under Minnesota Statutes, section 123B.92, subdivision 9:

170.26		$ 
	20,755,000
	..... 
	2008 
	
170.27
170.28		$ 
	21,007,000
20,739,000
	..... 
	2009 
	
170.29 	The 2008 appropriation includes $2,124,000 for 2007 and $18,631,000 for 2008.
170.30 	The 2009 appropriation includes $2,070,000 $2,037,000 for 2008 and $18,937,000
170.31 	$18,702,000 for 2009.
170.32 	B. EDUCATION EXCELLENCE

171.1 	Sec. 7. Laws 2007, chapter 146, article 2, section 46, subdivision 2, as amended by 
171.2 	Laws 2008, chapter 363, article 3, section 8, is amended to read:
171.3 		Subd. 2. Charter school building lease aid. For building lease aid under Minnesota 
171.4 	Statutes, section 124D.11, subdivision 4: 

171.5		$ 
	32,817,000
	..... 
	2008 
	
171.6
171.7		$ 
	37,527,000
36,605,000
	..... 
	2009 
	
171.8 	The 2008 appropriation includes $2,814,000 for 2007 and $30,003,000 for 2008. 
171.9 	The 2009 appropriation includes $3,333,000 $3,264,000 for 2008 and $34,194,000
171.10 	$33,341,000 for 2009. 

171.11 	Sec. 8. Laws 2007, chapter 146, article 2, section 46, subdivision 3, as amended by 
171.12 	Laws 2008, chapter 363, article 3, section 9, is amended to read:
171.13 		Subd. 3. Charter school startup cost aid. For charter school startup cost aid 
171.14 	under Minnesota Statutes, section 124D.11: 

171.15		$ 
	1,801,000
	..... 
	2008 
	
171.16
171.17		$ 
	1,987,000
1,982,000
	..... 
	2009 
	
171.18 	The 2008 appropriation includes $239,000 for 2007 and $1,562,000 for 2008. 
171.19 	The 2009 appropriation includes $173,000 $162,000 for 2008 and $1,814,000
171.20 	$1,820,000 for 2009. 

171.21 	Sec. 9. Laws 2007, chapter 146, article 2, section 46, subdivision 4, as amended by 
171.22 	Laws 2008, chapter 363, article 3, section 10, is amended to read:
171.23 		Subd. 4. Integration aid. For integration aid under Minnesota Statutes, section 
171.24 	124D.86, subdivision 5: 

171.25		$ 
	59,036,000
	..... 
	2008 
	
171.26
171.27		$ 
	62,448,000
60,826,000
	..... 
	2009 
	
171.28 	The 2008 appropriation includes $5,824,000 for 2007 and $53,212,000 for 2008. 
171.29 	The 2009 appropriation includes $5,912,000 $5,833,000 for 2008 and $56,536,000
171.30 	$54,993,000 for 2009. 

171.31 	Sec. 10. Laws 2007, chapter 146, article 2, section 46, subdivision 6, as amended by 
171.32 	Laws 2008, chapter 363, article 3, section 11, is amended to read:
172.1 		Subd. 6. Interdistrict desegregation or integration transportation grants. For 
172.2 	interdistrict desegregation or integration transportation grants under Minnesota Statutes, 
172.3 	section 124D.87: 

172.4		$ 
	9,901,000
	..... 
	2008 
	
172.5
172.6		$ 
	11,881,000
11,947,000
	..... 
	2009 

172.7 	Sec. 11. Laws 2007, chapter 146, article 2, section 46, subdivision 9, as amended by 
172.8 	Laws 2008, chapter 363, article 3, section 12, is amended to read:
172.9 		Subd. 9. Tribal contract schools. For tribal contract school aid under Minnesota 
172.10 	Statutes, section 124D.83: 

172.11		$ 
	2,207,000
	..... 
	2008 
	
172.12
172.13		$ 
	2,392,000
1,844,000
	..... 
	2009 
	
172.14 	The 2008 appropriation includes $204,000 for 2007 and $2,003,000 for 2008. 
172.15 	The 2009 appropriation includes $222,000 $122,000 for 2008 and $2,170,000
172.16 	$1,722,000 for 2009. 
172.17 	C. SPECIAL EDUCATION

172.18 	Sec. 12. Laws 2007, chapter 146, article 3, section 24, subdivision 3, as amended by 
172.19 	Laws 2008, chapter 363, article 3, section 13, is amended to read:
172.20 		Subd. 3. Aid for children with disabilities. For aid under Minnesota Statutes, 
172.21 	section 125A.75, subdivision 3, for children with disabilities placed in residential facilities 
172.22 	within the district boundaries for whom no district of residence can be determined: 

172.23		$ 
	2,086,000
	..... 
	2008 
	
172.24
172.25		$ 
	2,282,000
1,556,000
	..... 
	2009 
	
172.26 	If the appropriation for either year is insufficient, the appropriation for the other 
172.27 	year is available. 

172.28 	Sec. 13. Laws 2007, chapter 146, article 3, section 24, subdivision 4, as amended by 
172.29 	Laws 2008, chapter 363, article 3, section 14, is amended to read:
172.30 		Subd. 4. Travel for home-based services. For aid for teacher travel for home-based 
172.31 	services under Minnesota Statutes, section 125A.75, subdivision 1: 

172.32		$ 
	207,000
	..... 
	2008 
	
172.33		$ 
	227,000237,000
	..... 
	2009 
	
173.1 	The 2008 appropriation includes $22,000 for 2007 and $185,000 for 2008. 
173.2 	The 2009 appropriation includes $20,000 $21,000 for 2008 and $207,000 $216,000
173.3 	for 2009. 

173.4 	Sec. 14. Laws 2007, chapter 146, article 3, section 24, subdivision 7, is amended to 
173.5 	read:
173.6 		Subd. 7.Court-placed special education revenue. For reimbursing serving 
173.7 	school districts for unreimbursed eligible expenditures attributable to children placed in 
173.8 	the serving school district by court action under Minnesota Statutes, section 125A.79, 
173.9 	subdivision 4:

173.10		$
	72,000
	.....
	2008
	
173.11		$
	74,000
	.....
	2009
	
173.12 	D. FACILITIES AND TECHNOLOGY

173.13 	Sec. 15. Laws 2007, chapter 146, article 4, section 16, subdivision 2, as amended by 
173.14 	Laws 2008, chapter 363, article 3, section 15, is amended to read:
173.15 		Subd. 2. Health and safety revenue. For health and safety aid according to 
173.16 	Minnesota Statutes, section 123B.57, subdivision 5: 

173.17		$ 
	254,000
	..... 
	2008 
	
173.18		$ 
	103,000119,000
	..... 
	2009 
	
173.19 	The 2008 appropriation includes $20,000 for 2007 and $234,000 for 2008. 
173.20 	The 2009 appropriation includes $26,000 $23,000 for 2008 and $77,000 $96,000
173.21 	for 2009. 

173.22 	Sec. 16. Laws 2007, chapter 146, article 4, section 16, subdivision 6, as amended by 
173.23 	Laws 2008, chapter 363, article 3, section 17, is amended to read:
173.24 		Subd. 6. Deferred maintenance aid. For deferred maintenance aid, according to 
173.25 	Minnesota Statutes, section 123B.591, subdivision 4: 

173.26		$ 
	3,232,000
	..... 
	2008 
	
173.27
173.28		$ 
	2,627,000
2,720,000
	..... 
	2009 
	
173.29 	The 2008 appropriation includes $0 for 2007 and $3,232,000 for 2008. 
173.30 	The 2009 appropriation includes $359,000 $371,000 for 2008 and $2,268,000
173.31 	$2,349,000 for 2009. 

174.1 	Sec. 17. Laws 2007, chapter 146, article 4, section 16, subdivision 8, as amended by 
174.2 	Laws 2008, chapter 363, article 3, section 18, is amended to read:
174.3 		Subd. 8. School technology and operating capital aid grants. For school 
174.4 	technology and operating capital grants under section 11: 

174.5		$ 
	38,236,000
	..... 
	2008 
	
174.6
174.7		$ 
	52,454,000
52,254,000
	..... 
	2009 
	
174.8 	This is a onetime appropriation. 
174.9 	E. NUTRITION

174.10 	Sec. 18. Laws 2007, chapter 146, article 5, section 13, subdivision 2, as amended by 
174.11 	Laws 2008, chapter 363, article 3, section 19, is amended to read:
174.12 		Subd. 2. School lunch. For school lunch aid according to Minnesota Statutes, 
174.13 	section 124D.111, and Code of Federal Regulations, title 7, section 210.17: 

174.14		$ 
	12,094,000
	..... 
	2008 
	
174.15
174.16		$ 
	12,394,000
12,298,000
	..... 
	2009 

174.17 	Sec. 19. Laws 2007, chapter 146, article 5, section 13, subdivision 3, as amended by 
174.18 	Laws 2008, chapter 363, article 2, section 40, is amended to read:
174.19 		Subd. 3. Traditional school breakfast; kindergarten milk. For traditional school 
174.20 	breakfast aid and kindergarten milk under Minnesota Statutes, sections 124D.1158 and 
174.21 	124D.118: 

174.22		$ 
	5,583,000
	..... 
	2008 
	
174.23
174.24		$ 
	6,396,000
5,801,000
	..... 
	2009 
	
174.25 	The 2009 appropriation includes $4,725,000 for traditional school breakfast and 
174.26 	$1,076,000 for kindergarten milk.
174.27 	F. EARLY CHILDHOOD EDUCATION

174.28 	Sec. 20. Laws 2007, chapter 146, article 9, section 17, subdivision 2, as amended by 
174.29 	Laws 2008, chapter 363, article 3, section 21, is amended to read:
174.30 		Subd. 2. Early childhood family education aid. For early childhood family 
174.31 	education aid under Minnesota Statutes, section 124D.135: 

175.1		$ 
	21,092,000
	..... 
	2008 
	
175.2
175.3		$ 
	29,324,000
29,326,000
	..... 
	2009 
	
175.4 	The 2008 appropriation includes $1,796,000 for 2007 and $19,296,000 for 2008. 
175.5 	The 2009 appropriation includes $2,144,000 for 2008 and $27,180,000 $27,182,000
175.6 	for 2009. 

175.7 	Sec. 21. Laws 2007, chapter 146, article 9, section 17, subdivision 4, as amended by 
175.8 	Laws 2008, chapter 363, article 2, section 42, is amended to read:
175.9 		Subd. 4. Health and developmental screening aid. For health and developmental 
175.10 	screening aid under Minnesota Statutes, sections 121A.17 and 121A.19: 

175.11		$ 
	2,624,000
	..... 
	2008 
	
175.12
175.13		$ 
	3,592,000
3,552,000
	..... 
	2009 
	
175.14 	The 2008 appropriation includes $288,000 for 2007 and $2,336,000 for 2008. 
175.15 	The 2009 appropriation includes $259,000 $247,000 for 2008 and $3,333,000
175.16 	$3,305,000 for 2009. 
175.17 	G. PREVENTION

175.18 	Sec. 22. Laws 2007, chapter 146, article 9, section 17, subdivision 8, as amended by 
175.19 	Laws 2008, chapter 363, article 3, section 23, is amended to read:
175.20 		Subd. 8. Community education aid. For community education aid under 
175.21 	Minnesota Statutes, section 124D.20: 

175.22		$ 
	1,299,000
	..... 
	2008 
	
175.23		$ 
	796,000785,000
	..... 
	2009 
	
175.24 	The 2008 appropriation includes $195,000 for 2007 and $1,104,000 for 2008. 
175.25 	The 2009 appropriation includes $122,000 for 2008 and $674,000 $663,000 for 2009. 

175.26 	Sec. 23. Laws 2007, chapter 146, article 9, section 17, subdivision 9, as amended by 
175.27 	Laws 2008, chapter 363, article 3, section 24, is amended to read:
175.28 		Subd. 9. Adults with disabilities program aid. For adults with disabilities 
175.29 	programs under Minnesota Statutes, section 124D.56: 

175.30		$ 
	709,000
	..... 
	2008 
	
175.31		$ 
	710,000
	..... 
	2009 
	
175.32 	The 2008 appropriation includes $70,000 for 2007 and $639,000 for 2008. 
175.33 	The 2009 appropriation includes $71,000 for 2008 and $639,000 for 2009. 
176.1 	School districts operating existing adults with disabilities programs that are not fully 
176.2 	funded shall receive full funding for the program beginning in fiscal year 2008 before the 
176.3 	commissioner awards grants to other districts. 
176.4 	H. SELF-SUFFICIENCY AND LIFELONG LEARNING

176.5 	Sec. 24. Laws 2007, chapter 146, article 9, section 17, subdivision 13, as amended by 
176.6 	Laws 2008, chapter 363, article 3, section 25, is amended to read:
176.7 		Subd. 13. Adult basic education aid. For adult basic education aid under 
176.8 	Minnesota Statutes, section 124D.531: 

176.9		$ 
	40,344,000
	..... 
	2008 
	
176.10
176.11		$ 
	41,712,000
41,749,000
	..... 
	2009 
	
176.12 	The 2008 appropriation includes $3,759,000 for 2007 and $36,585,000 for 2008. 
176.13 	The 2009 appropriation includes $4,065,000 for 2008 and $37,647,000 $37,684,000
176.14 	for 2009.