HF 1197

1st Engrossment - 85th Legislature (2007 - 2008) Posted on 12/15/2009 12:00am

A bill for an act
relating to education; providing for prekindergarten through grade 12 education,
including general education, education excellence, special programs, facilities
and technology, nutrition and accounting, libraries, early childhood education,
self-sufficiency and lifelong learning, and early childhood education; authorizing
rulemaking; amending Minnesota Statutes 2006, sections 16A.152, subdivision
2; 119A.52; 119A.535; 120A.05, by adding a subdivision; 120A.22, subdivision
7; 120B.15; 120B.30; 122A.16; 123B.143, subdivision 1; 123B.36, subdivision
1; 123B.37, subdivision 1; 123B.63, subdivision 3; 123B.79, by adding a
subdivision; 123B.92, subdivision 3; 124D.095, subdivision 3; 124D.10,
subdivisions 4, 23a, 24; 124D.4531, subdivisions 1, 3; 124D.531, subdivision 4;
124D.55; 124D.84, subdivision 1; 125A.11, subdivision 1; 125A.14; 125A.75,
subdivisions 1, 4; 125A.76, subdivision 2; 125A.79, subdivision 8; 126C.13,
subdivision 4; 126C.21, subdivision 5; 127A.441; 127A.47, subdivision 7;
127A.49, subdivision 2; 134.31, by adding a subdivision; 626.556, subdivision
11; proposing coding for new law in Minnesota Statutes, chapters 119A;
123B; 124D; repealing Minnesota Statutes 2006, sections 124D.06; 124D.531,
subdivision 5; 124D.62; 125A.10; 125A.75, subdivision 6.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

ARTICLE 1

GENERAL EDUCATION

Section 1.

Minnesota Statutes 2006, section 16A.152, subdivision 2, is amended to
read:

Subd. 2.

Additional revenues; priority.

(a) If on the basis of a forecast of general
fund revenues and expenditures, the commissioner of finance determines that there will be
a positive unrestricted budgetary general fund balance at the close of the biennium, the
commissioner of finance must allocate money to the following accounts and purposes in
priority order:

(1) the cash flow account established in subdivision 1 until that account reaches
$350,000,000;

(2) the budget reserve account established in subdivision 1a until that account
reaches $653,000,000;

(3) the amount necessary to increase the aid payment schedule for school district
aids and credits payments in section 127A.45 to not more than 90 percent rounded to the
nearest tenth of a percent without exceeding the amount available and with any remaining
funds deposited in the budget reserve; and

(4) the amount necessary to restore all or a portion of the net aid reductions under
section 127A.441 and to reduce the property tax revenue recognition shift under section
123B.75, subdivision 5, paragraph deleted text begin (c) deleted text end new text begin (b) new text end , and Laws 2003, First Special Session chapter
9, article 5, section 34, as amended by Laws 2003, First Special Session chapter 23,
section 20, by the same amount.

(b) The amounts necessary to meet the requirements of this section are appropriated
from the general fund within two weeks after the forecast is released or, in the case of
transfers under paragraph (a), clauses (3) and (4), as necessary to meet the appropriations
schedules otherwise established in statute.

(c) To the extent that a positive unrestricted budgetary general fund balance is
projected, appropriations under this section must be made before section 16A.1522 takes
effect.

(d) The commissioner of finance shall certify the total dollar amount of the
reductions under paragraph (a), clauses (3) and (4), to the commissioner of education. The
commissioner of education shall increase the aid payment percentage and reduce the
property tax shift percentage by these amounts and apply those reductions to the current
fiscal year and thereafter.

Sec. 2.

Minnesota Statutes 2006, section 126C.13, subdivision 4, is amended to read:

Subd. 4.

General education aid.

deleted text begin (a) For fiscal year 2006, a district's general
education aid is the sum of the following amounts:
deleted text end

deleted text begin (1) general education revenue, excluding equity revenue, total operating capital, and
transition revenue;
deleted text end

deleted text begin (2) operating capital aid according to section deleted text begin 126C.10, subdivision 13b deleted text end ;
deleted text end

deleted text begin (3) equity aid according to section deleted text begin 126C.10, subdivision 30 deleted text end ;
deleted text end

deleted text begin (4) transition aid according to section deleted text begin 126C.10, subdivision 33 deleted text end ;
deleted text end

deleted text begin (5) shared time aid according to section deleted text begin 126C.01, subdivision 7 deleted text end ;
deleted text end

deleted text begin (6) referendum aid according to section ; and
deleted text end

deleted text begin (7) online learning aid according to section .
deleted text end

deleted text begin (b) deleted text end For fiscal year deleted text begin 2007 deleted text end new text begin 2008 new text end and later, a district's general education aid is the sum of
the following amounts:

(1) general education revenue, excluding equity revenue, total operating capital
revenue, alternative teacher compensation revenue, and transition revenue;

(2) operating capital aid under section 126C.10, subdivision 13b;

(3) equity aid under section 126C.10, subdivision 30;

(4) alternative teacher compensation aid under section 126C.10, subdivision 36;

(5) transition aid under section 126C.10, subdivision 33;

(6) shared time aid under section 126C.01, subdivision 7;

(7) referendum aid under section 126C.17 new text begin , subdivisions 7 and 7a new text end ; and

(8) online learning aid according to section 124D.096.

Sec. 3.

Minnesota Statutes 2006, section 126C.21, subdivision 5, is amended to read:

Subd. 5.

Adjustment for failure to meet federal maintenance of effort.

new text begin (a) new text end The
general education aid paid to a school district or charter school that failed to meet federal
special education maintenance of effort for the previous fiscal year must be reduced by the
amount that must be paid to the federal government due to the shortfall.

new text begin (b) The general education aid paid to school districts that were members of a
cooperative that failed to meet federal special education maintenance of effort must be
reduced by the amount that must be paid to the federal government due to the shortfall.
The commissioner must apportion the aid reduction amount the member school districts
based on each district's individual shortfall in maintaining effort, and on each member
district's proportionate share of any shortfall in expenditures made by the cooperative.
Each district's proportionate share of shortfall in expenditures made by the cooperative
must be calculated using the adjusted marginal pupil units of each member school district.
new text end

new text begin (c) new text end The amounts recovered under this subdivision shall be paid to the federal
government to meet the state's obligations resulting from the district's deleted text begin or deleted text end new text begin , new text end charter school's new text begin ,
or cooperative's new text end failure to meet federal special education maintenance of effort.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 4.

Minnesota Statutes 2006, section 127A.441, is amended to read:

127A.441 AID REDUCTION; LEVY REVENUE RECOGNITION CHANGE.

Each year, the state aids payable to any school district for that fiscal year that are
recognized as revenue in the school district's general and community service funds shall
be adjusted by an amount equal to (1) the amount the district recognized as revenue for the
prior fiscal year pursuant to section 123B.75, subdivision 5, paragraph (b) deleted text begin or (c) deleted text end , minus (2)
the amount the district recognized as revenue for the current fiscal year pursuant to section
123B.75, subdivision 5, paragraph deleted text begin (c) deleted text end new text begin (b) new text end . For purposes of making the aid adjustments
under this section, the amount the district recognizes as revenue for either the prior fiscal
year or the current fiscal year pursuant to section 123B.75, subdivision 5, paragraph (b)
deleted text begin or (c) deleted text end , shall not include any amount levied pursuant to section 124D.86, subdivision 4,
for school districts receiving revenue under sections 124D.86, subdivision 3, clauses (1),
(2), and (3); 126C.41, subdivisions 1, 2, and 3, paragraphs (b), (c), and (d); 126C.43,
subdivision 2; 126C.457; and 126C.48, subdivision 6. Payment from the permanent
school fund shall not be adjusted pursuant to this section. The school district shall be
notified of the amount of the adjustment made to each payment pursuant to this section.

Sec. 5.

Minnesota Statutes 2006, section 127A.49, subdivision 2, is amended to read:

Subd. 2.

Abatements.

Whenever by virtue of chapter 278, sections 270C.86,
375.192, or otherwise, the net tax capacity new text begin or referendum market value new text end of any district for
any taxable year is changed after the taxes for that year have been spread by the county
auditor and the local tax rate as determined by the county auditor based upon the original
net tax capacity is applied upon the changed net tax capacities, the county auditor shall,
prior to February 1 of each year, certify to the commissioner of education the amount of
any resulting net revenue loss that accrued to the district during the preceding year. Each
year, the commissioner shall pay an abatement adjustment to the district in an amount
calculated according to the provisions of this subdivision. This amount shall be deducted
from the amount of the levy authorized by section 126C.46. The amount of the abatement
adjustment must be the product of:

(1) the net revenue loss as certified by the county auditor, times

(2) the ratio of:

(i) the sum of the amounts of the district's certified levy in the third preceding year
according to the following:

(A) section 123B.57, if the district received health and safety aid according to that
section for the second preceding year;

(B) section 124D.20, if the district received aid for community education programs
according to that section for the second preceding year;

(C) section 124D.135, subdivision 3, if the district received early childhood family
education aid according to section 124D.135 for the second preceding year; and

(D) section 126C.17, subdivision 6, if the district received referendum equalization
aid according to that section for the second preceding year; to

(ii) the total amount of the district's certified levy in the third preceding December,
plus or minus auditor's adjustments.

Sec. 6. new text begin REVISOR'S INSTRUCTION.
new text end

new text begin In Minnesota Statutes, the revisor of statutes shall correct any incorrect cross
references resulting from the repeal of Minnesota Statutes, section 124D.06.
new text end

Sec. 7. new text begin REPEALER.
new text end

new text begin Minnesota Statutes 2006, section 124D.06, new text end new text begin is repealed.
new text end

ARTICLE 2

EDUCATION EXCELLENCE

Section 1.

Minnesota Statutes 2006, section 120A.22, subdivision 7, is amended to
read:

Subd. 7.

Education records.

(a) A district new text begin , charter school, or nonpublic school new text end from
which a student is transferring must transmit the student's educational records, within ten
business days of a request, to the district new text begin , charter school, or nonpublic school new text end in which
the student is enrolling. Districts new text begin and charter schools new text end must make reasonable efforts to
determine the district new text begin , charter school, or nonpublic school new text end in which a transferring student
is next enrolling in order to comply with this subdivision.

(b) new text begin A closed charter school must transfer the student's educational records, within
ten business days of the school's closure, to the student's school district of residence
where the records must be retained unless the records are otherwise transferred under
this subdivision.
new text end

new text begin (c) new text end A school district new text begin or charter school new text end that transmits a student's educational records
to another school district or other educational entity new text begin , charter school, or nonpublic school new text end
to which the student is transferring must include in the transmitted records information
about new text begin any formal suspension, expulsion, and exclusion new text end disciplinary action deleted text begin taken as a result
of any incident in which the student possessed or used a dangerous weapon deleted text end new text begin under sections
121A.40 to 121A.56. The district or charter school must provide notice to a student and
the student's parent or guardian that formal disciplinary records will be transferred as
part of the student's educational record, in accordance with data practices under chapter
13 and the Family Educational Rights and Privacy Act of 1974, United States Code,
title 20, section 1232(g) new text end .

deleted text begin (c) deleted text end new text begin (d) new text end Notwithstanding section 138.17, a principal or chief administrative officer
must remove from a student's educational record and destroy a probable cause notice
received under section 260B.171, subdivision 5, or paragraph (d), if one year has elapsed
since the date of the notice and the principal or chief administrative officer has not
received a disposition or court order related to the offense described in the notice. This
paragraph does not apply if the student no longer attends the school when this one-year
period expires.

deleted text begin (d) deleted text end new text begin (e) new text end A principal or chief administrative officer who receives a probable cause
notice under section 260B.171, subdivision 5, or a disposition or court order, must include
a copy of that data in the student's educational records if they are transmitted to another
school, unless the data are required to be destroyed under paragraph (c) or section 121A.75.

Sec. 2.

Minnesota Statutes 2006, section 120B.15, is amended to read:

120B.15 GIFTED AND TALENTED STUDENTS PROGRAMS.

new text begin (a) new text end School districts may identify students, locally develop programs, provide
staff development, and evaluate programs to provide gifted and talented students with
challenging educational programs.

new text begin (b) new text end School districts may adopt guidelines for assessing and identifying students for
participation in gifted and talented programs. The guidelines should include the use of:

(1) multiple and objective criteria; and

(2) assessments and procedures that are valid and reliable, fair, and based on current
theory and research.

new text begin (c) School districts must adopt policies and procedures for the academic acceleration
of gifted and talented students. These policies and procedures must include how the
district will:
new text end

new text begin (1) assess a student's readiness and motivation for acceleration; and
new text end

new text begin (2) match the level, complexity, and pace of the curriculum to a student to achieve
the best type of academic acceleration for that student.
new text end

Sec. 3.

Minnesota Statutes 2006, section 120B.30, is amended to read:

120B.30 STATEWIDE TESTING AND REPORTING SYSTEM.

Subdivision 1.

Statewide testing.

(a) The commissioner, with advice from experts
with appropriate technical qualifications and experience and stakeholders, consistent with
subdivision 1a, shall include in the comprehensive assessment system, for each grade
level to be tested, state-constructed tests developed from and aligned with the state's
required academic standards under section 120B.021 and administered annually to all
students in grades 3 through 8 and at the high school level. A state-developed test in a
subject other than writing, developed after the 2002-2003 school year, must include both
machine-scoreable and constructed response questions. The commissioner shall establish
one or more months during which schools shall administer the tests to students each
school year. For students enrolled in grade 8 before the 2005-2006 school year, only
Minnesota basic skills tests in reading, mathematics, and writing shall fulfill students'
basic skills testing requirements for a passing state notation. The passing scores of deleted text begin the
state deleted text end new text begin basic skills new text end tests in reading and mathematics are the equivalent of deleted text begin :
deleted text end

deleted text begin (1) 70 percent correct for students entering grade 9 in 1996; and
deleted text end

deleted text begin (2) deleted text end 75 percent correct for students entering grade 9 in 1997 and thereafter, as based
on the first uniform test administration of February 1998.

new text begin (b) new text end For students enrolled in grade 8 in the 2005-2006 school year and later, only
the deleted text begin Minnesota Comprehensive Assessments Second Edition (MCA-IIs) in reading,
mathematics, and writing deleted text end new text begin following options new text end shall fulfill students' deleted text begin academic standard deleted text end new text begin state
graduation test new text end requirements deleted text begin . deleted text end new text begin :
new text end

new text begin (1) for reading and mathematics:
new text end

new text begin (i) obtaining an achievement level equivalent to or greater than proficient as
determined through a standard setting process on the Minnesota comprehensive
assessments in grade 10 for reading and grade 11 for mathematics or achieving a passing
score as determined through a standard setting process on the graduation-required
assessment for diploma in grade 10 for reading and grade 11 for mathematics or
subsequent retests;
new text end

new text begin (ii) achieving a passing score as determined through a standard setting process on the
state-identified language proficiency test in reading and the mathematics test for English
language learners or the graduation-required assessment for diploma equivalent of those
assessments for students designated as English language learners;
new text end

new text begin (iii) achieving an individual passing score on the graduation-required assessment
for diploma as determined by appropriate state guidelines for students with an individual
education plan or 504 plan;
new text end

new text begin (iv) obtaining achievement level equivalent to or greater than proficient as
determined through a standard setting process on the state-identified alternate assessment
or assessments in grade 10 for reading and grade 11 for mathematics for students with
an individual education plan; or
new text end

new text begin (v) achieving an individual passing score on the state-identified alternate assessment
or assessments as determined by appropriate state guidelines for students with an
individual education plan; and
new text end

new text begin (2) for writing:
new text end

new text begin (i) achieving a passing score on the graduation-required assessment for diploma;
new text end

new text begin (ii) achieving a passing score as determined through a standard setting process on
the state-identified language proficiency test in writing for students designated as English
language learners;
new text end

new text begin (iii) achieving an individual passing score on the graduation-required assessment
for diploma as determined by appropriate state guidelines for students with an individual
education plan or 504 plan; or
new text end

new text begin (iv) achieving an individual passing score on the state-identified alternate assessment
or assessments as determined by appropriate state guidelines for students with an
individual education plan.
new text end

deleted text begin (b) deleted text end new text begin (c) new text end The deleted text begin third deleted text end new text begin 3rd new text end through 8th grade and high school level test results shall
be available to districts for diagnostic purposes affecting student learning and district
instruction and curriculum, and for establishing educational accountability. The
commissioner must disseminate to the public the test results upon receiving those results.

deleted text begin (c) deleted text end new text begin (d) new text end State tests must be constructed and aligned with state academic standards. The
testing process and the order of administration shall be determined by the commissioner.
The statewide results shall be aggregated at the site and district level, consistent with
subdivision 1a.

deleted text begin (d) deleted text end new text begin (e) new text end In addition to the testing and reporting requirements under this section, the
commissioner shall include the following components in the statewide public reporting
system:

(1) uniform statewide testing of all students in grades 3 through 8 and at the high
school level that provides new text begin appropriate, new text end new text begin technically sound accommodations, alternate
assessments, or new text end exemptions new text begin consistent with applicable federal law new text end , only with parent or
guardian approval, for those very few students for whom the student's individual education
plan team under sections 125A.05 and 125A.06 deleted text begin , deleted text end determines that the new text begin general statewide
test is inappropriate for a new text end student deleted text begin is incapable of taking a statewide test deleted text end , or for a limited
English proficiency student under section 124D.59, subdivision 2 deleted text begin , if the student has been
in the United States for deleted text end deleted text begin fewer than three years deleted text end ;

(2) educational indicators that can be aggregated and compared across school
districts and across time on a statewide basis, including average daily attendance, high
school graduation rates, and high school drop-out rates by age and grade level;

(3) deleted text begin students' scores deleted text end new text begin state results new text end on the American College Test; and

(4) state results from participation in the National Assessment of Educational
Progress so that the state can benchmark its performance against the nation and other
states, and, where possible, against other countries, and contribute to the national effort
to monitor achievement.

deleted text begin (e) Districts must report exemptions under paragraph (d), clause (1), to the
commissioner consistent with a format provided by the commissioner.
deleted text end

Subd. 1a.

Statewide and local assessments; results.

(a) The commissioner must
develop reading, mathematics, and science assessments aligned with state academic
standards that districts and sites must use to monitor student growth toward achieving
those standards. The commissioner must not develop statewide assessments for academic
standards in social studies, health and physical education, and the arts. The commissioner
must require:

(1) annual reading and mathematics assessments in grades 3 through 8 and at the
high school level for the 2005-2006 school year and later; and

(2) annual science assessments in one grade in the grades 3 through 5 span, the
grades 6 through 9 span, and a life sciences assessment in the grades 10 through 12 span
for the 2007-2008 school year and later.

(b) The commissioner must ensure that all statewide tests administered to elementary
and secondary students measure students' academic knowledge and skills and not students'
values, attitudes, and beliefs.

(c) Reporting of assessment results must:

(1) provide timely, useful, and understandable information on the performance of
individual students, schools, school districts, and the state;

(2) include, by deleted text begin the 2006-2007 deleted text end new text begin no later than the 2008-2009 new text end school year, a value-added
component deleted text begin to deleted text end new text begin that is in addition to a new text end measure new text begin for new text end student achievement growth over time;
and

(3)(i) for students enrolled in grade 8 before the 2005-2006 school year, determine
whether students have met the state's basic skills requirements; and

(ii) for students enrolled in grade 8 in the 2005-2006 school year and later, determine
whether students have met the state's academic standards.

(d) Consistent with applicable federal law and subdivision 1, paragraph (d), clause
(1), the commissioner must include new text begin appropriate, new text end new text begin technically sound accommodations or new text end
alternative assessments for the very few students with disabilities for whom statewide
assessments are inappropriate and for students with limited English proficiency.

(e) A school, school district, and charter school must administer statewide
assessments under this section, as the assessments become available, to evaluate student
progress in achieving the academic standards. If a state assessment is not available, a
school, school district, and charter school must determine locally if a student has met
the required academic standards. A school, school district, or charter school may use a
student's performance on a statewide assessment as one of multiple criteria to determine
grade promotion or retention. A school, school district, or charter school may use a high
school student's performance on a statewide assessment as a percentage of the student's
final grade in a course, or place a student's assessment score on the student's transcript
new text begin except as required under paragraph (f) new text end .

new text begin (f) A school district or charter school must place a student's assessment score for
ninth grade writing, tenth grade language arts, and eleventh grade mathematics on the
student's transcript.
new text end

Subd. 2.

Department of Education assistance.

The Department of Education
shall contract for professional and technical services according to competitive bidding
procedures under chapter 16C for purposes of this section.

Subd. 3.

Reporting.

The commissioner shall report test data publicly and to
stakeholders, including the deleted text begin three performance baselines deleted text end new text begin performance achievement levels new text end
developed from students' unweighted deleted text begin mean deleted text end test scores in each tested subject and a listing of
demographic factors that strongly correlate with student performance. The commissioner
shall also report data that compares performance results among school sites, school
districts, Minnesota and other states, and Minnesota and other nations. The commissioner
shall disseminate to schools and school districts a more comprehensive report containing
testing information that meets local needs for evaluating instruction and curriculum.

Subd. 4.

Access to tests.

The commissioner must adopt and publish a policy
to provide public and parental access for review of basic skills tests, Minnesota
Comprehensive Assessments, or any other such statewide test and assessment. Upon
receiving a written request, the commissioner must make available to parents or guardians
a copy of their student's actual deleted text begin answer sheet deleted text end new text begin responses new text end to the test questions to be reviewed
by the parent.

Sec. 4.

Minnesota Statutes 2006, section 122A.16, is amended to read:

122A.16 HIGHLY QUALIFIED TEACHER DEFINED.

(a) A qualified teacher is one holding a valid license, under this chapter, to perform
the particular service for which the teacher is employed in a public school.

(b) For the purposes of the federal No Child Left Behind Act, a highly qualified
teacher deleted text begin is one who holds a valid license under this chapter to perform the particular service
for which the teacher is employed in a public school or who meets the requirements of a
highly objective uniform state standard of evaluation (HOUSSE) deleted text end new text begin means a teacher who:
new text end

new text begin (1) has obtained full state certification or passed the state teacher licensing
examination and holds a license to teach in the state;
new text end

new text begin (2) does not have certification or licensure requirements waived on an emergency,
temporary, or provisional basis;
new text end

new text begin (3) holds a minimum of a bachelor's degree; and
new text end

new text begin (4) has demonstrated subject matter competency in core academic subjects new text end .

deleted text begin All Minnesota teachers teaching in a core academic subject area, as defined by the
federal No Child Left Behind Act, in which they are not fully licensed may complete the
following HOUSSE process in the core subject area for which the teacher is requesting
highly qualified status by completing an application, in the form and manner described by
the commissioner, that includes:
deleted text end

deleted text begin (1) documentation of student achievement as evidenced by norm-referenced test
results that are objective and psychometrically valid and reliable;
deleted text end

deleted text begin (2) evidence of local, state, or national activities, recognition, or awards for
professional contribution to achievement;
deleted text end

deleted text begin (3) description of teaching experience in the teachers' core subject area in a public
school under a waiver, variance, limited license or other exception; nonpublic school; and
postsecondary institution;
deleted text end

deleted text begin (4) test results from the Praxis II content test;
deleted text end

deleted text begin (5) evidence of advanced certification from the National Board for Professional
Teaching Standards;
deleted text end

deleted text begin (6) evidence of the successful completion of course work or pedagogy courses; and
deleted text end

deleted text begin (7) evidence of the successful completion of high quality professional development
activities.
deleted text end

deleted text begin Districts must assign a school administrator to serve as a HOUSSE reviewer to
meet with teachers under this paragraph and, where appropriate, certify the teachers'
applications. Teachers satisfy the definition of highly qualified when the teachers receive
at least 100 of the total number of points used to measure the teachers' content expertise
under clauses (1) to (7). Teachers may acquire up to 50 points only in any one clause (1)
to (7). Teachers may use the HOUSSE process to satisfy the definition of highly qualified
for more than one subject area.
deleted text end

(c) deleted text begin Achievement of the HOUSSE criteria is not equivalent to a license. A teacher
must obtain permission from the Board of Teaching in order to teach in a public school deleted text end new text begin
Subject matter competency to meet federal highly qualified teacher requirements is
determined by the state new text end .

Sec. 5.

Minnesota Statutes 2006, section 123B.143, subdivision 1, is amended to read:

Subdivision 1.

Contract; duties.

All districts maintaining a classified secondary
school must employ a superintendent who shall be an ex officio nonvoting member of the
school board. The authority for selection and employment of a superintendent must be
vested in the board in all cases. An individual employed by a board as a superintendent
shall have an initial employment contract for a period of time no longer than three years
from the date of employment. Any subsequent employment contract must not exceed a
period of three years. A board, at its discretion, may or may not renew an employment
contract. A board must not, by action or inaction, extend the duration of an existing
employment contract. Beginning 365 days prior to the expiration date of an existing
employment contract, a board may negotiate and enter into a subsequent employment
contract to take effect upon the expiration of the existing contract. A subsequent contract
must be contingent upon the employee completing the terms of an existing contract. If a
contract between a board and a superintendent is terminated prior to the date specified in
the contract, the board may not enter into another superintendent contract with that same
individual that has a term that extends beyond the date specified in the terminated contract.
A board may terminate a superintendent during the term of an employment contract for any
of the grounds specified in section 122A.40, subdivision 9 or 13. A superintendent shall
not rely upon an employment contract with a board to assert any other continuing contract
rights in the position of superintendent under section 122A.40. Notwithstanding the
provisions of sections 122A.40, subdivision 10 or 11, 123A.32, 123A.75, or any other law
to the contrary, no individual shall have a right to employment as a superintendent based
on order of employment in any district. If two or more districts enter into an agreement for
the purchase or sharing of the services of a superintendent, the contracting districts have
the absolute right to select one of the individuals employed to serve as superintendent
in one of the contracting districts and no individual has a right to employment as the
superintendent to provide all or part of the services based on order of employment in a
contracting district. The superintendent of a district shall perform the following:

(1) visit and supervise the schools in the district, report and make recommendations
about their condition when advisable or on request by the board;

(2) recommend to the board employment and dismissal of teachers;

(3) superintend school grading practices and examinations for promotions;

(4) make reports required by the commissioner; new text begin and
new text end

(5) deleted text begin by January 10, submit an annual report to the commissioner in a manner
prescribed by the commissioner, in consultation with school districts, identifying the
expenditures that the district requires to ensure an 80 percent student passage rate on the
basic standards test taken in the eighth grade, identifying the highest student passage
rate the district expects it will be able to attain on the basic standards test by grade 12,
the amount of expenditures that the district requires to attain the targeted student passage
rate, and how much the district is cross-subsidizing programs with special education, basic
skills, and general education revenue; and
deleted text end

deleted text begin (6) deleted text end perform other duties prescribed by the board.

Sec. 6.

new text begin [123B.485] NONPUBLIC TRANSCRIPTS.
new text end

new text begin A nonpublic school that receives services or aid under sections 123B.40 to 123B.48
must not charge a fee to a person serving in active military service under section 190.05,
subdivision 5, who requests that the nonpublic school transmit a copy of the person's
transcript to a postsecondary institution or prospective employer. The nonpublic school
may request reasonable proof of the service member's current military status.
new text end

Sec. 7.

Minnesota Statutes 2006, section 123B.92, subdivision 3, is amended to read:

Subd. 3.

Alternative attendance programs.

new text begin (a) new text end A district that enrolls nonresident
pupils in programs under sections 124D.03, 124D.06, 124D.08, 123A.05 to 123A.08,
and 124D.68, must provide authorized transportation to the pupil within the attendance
area for the school that the pupil attends at the same level of service that is provided to
resident pupils within the attendance area. The resident district need not provide or pay for
transportation between the pupil's residence and the district's border.

new text begin (b) A district may provide transportation to allow a student who attends a high-need
English language learner program and who resides within the transportation attendance
area of the program to continue in the program until the student completes the highest
grade level offered by the program.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 8.

Minnesota Statutes 2006, section 124D.095, subdivision 3, is amended to read:

Subd. 3.

Authorization; notice; limitations on enrollment.

(a) A student may
apply to an online learning provider to enroll in online learning. A student age 17 or
younger must have the written consent of a parent or guardian to apply. No school district
or charter school may prohibit a student from applying to enroll in online learning. An
online learning provider that accepts a student under this section must, within ten days,
notify the student and the enrolling district if the enrolling district is not the online learning
provider. The notice must report the student's course or program and hours of instruction.

(b) An online learning student must notify the enrolling district at least 30 new text begin calendar
new text end days before taking an online learning course or program if the enrolling district is not
providing the online learning. An online learning provider must notify the commissioner
that it is delivering online learning and report the number of online learning students it is
accepting and the online learning courses and programs it is delivering.

(c) An online learning provider may limit enrollment if the provider's school board
or board of directors adopts by resolution specific standards for accepting and rejecting
students' applications. new text begin Student applications may not be rejected for criteria listed in
section 124D.03, subdivision 6.
new text end

(d) An enrolling district may reduce an online learning student's regular classroom
instructional membership in proportion to the student's membership in online learning
courses.

Sec. 9.

Minnesota Statutes 2006, section 124D.10, subdivision 4, is amended to read:

Subd. 4.

Formation of school.

(a) A sponsor may authorize one or more licensed
teachers under section 122A.18, subdivision 1, to operate a charter school subject to
approval by the commissioner. A board must vote on charter school application for
sponsorship no later than 90 days after receiving the application. deleted text begin After 90 days, the
applicant may apply to the commissioner. If a board elects not to sponsor a charter school,
the applicant may appeal the board's decision to the commissioner who may elect to assist
the applicant in finding an eligible sponsor. deleted text end The school must be organized and operated as
a cooperative under chapter 308A or nonprofit corporation under chapter 317A and the
provisions under the applicable chapter shall apply to the school except as provided in this
section. Notwithstanding sections 465.717 and 465.719, a school district may create a
corporation for the purpose of creating a charter school.

(b) Before the operators may form and operate a school, the sponsor must file an
affidavit with the commissioner stating its intent to authorize a charter school. The
affidavit must state the terms and conditions under which the sponsor would authorize a
charter school and how the sponsor intends to oversee the fiscal and student performance
of the charter school and to comply with the terms of the written contract between the
sponsor and the charter school board of directors under subdivision 6. The commissioner
must approve or disapprove the sponsor's proposed authorization within 90 days of
receipt of the affidavit. Failure to obtain commissioner approval precludes a sponsor from
authorizing the charter school that was the subject of the affidavit.

(c) The operators authorized to organize and operate a school, before entering into
a contract or other agreement for professional or other services, goods, or facilities,
must incorporate as a cooperative under chapter 308A or as a nonprofit corporation
under chapter 317A and must establish a board of directors composed of at least five
members until a timely election for members of the charter school board of directors is
held according to the school's articles and bylaws. A charter school board of directors
must be composed of at least five members. Any staff members who are employed at the
school, including teachers providing instruction under a contract with a cooperative, and
all parents of children enrolled in the school may participate in the election for members
of the school's board of directors. Licensed teachers employed at the school, including
teachers providing instruction under a contract with a cooperative, must be a majority
of the members of the board of directors before the school completes its third year of
operation, unless the commissioner waives the requirement for a majority of licensed
teachers on the board. Board of director meetings must comply with chapter 13D.

(d) The granting or renewal of a charter by a sponsoring entity must not be
conditioned upon the bargaining unit status of the employees of the school.

(e) A sponsor may authorize the operators of a charter school to expand the
operation of the charter school to additional sites or to add additional grades at the school
beyond those described in the sponsor's application as approved by the commissioner only
after submitting a supplemental application to the commissioner in a form and manner
prescribed by the commissioner. The supplemental application must provide evidence that:

(1) the expansion of the charter school is supported by need and projected enrollment;

(2) the charter school is fiscally sound;

(3) the sponsor supports the expansion; and

(4) the building of the additional site meets all health and safety requirements to
be eligible for lease aid.

(f) The commissioner annually must provide timely financial management training
to newly elected members of a charter school board of directors and ongoing training to
other members of a charter school board of directors. Training must address ways to:

(1) proactively assess opportunities for a charter school to maximize all available
revenue sources;

(2) establish and maintain complete, auditable records for the charter school;

(3) establish proper filing techniques;

(4) document formal actions of the charter school, including meetings of the charter
school board of directors;

(5) properly manage and retain charter school and student records;

(6) comply with state and federal payroll record-keeping requirements; and

(7) address other similar factors that facilitate establishing and maintaining complete
records on the charter school's operations.

Sec. 10.

Minnesota Statutes 2006, section 124D.10, subdivision 23a, is amended to
read:

Subd. 23a.

Related party lease costs.

(a) A charter school is prohibited from
entering a lease of real property with a related party as defined in deleted text begin this deleted text end subdivision new text begin 26 new text end , unless
the lessor is a nonprofit corporation under chapter 317A or a cooperative under chapter
308A, and the lease cost is reasonable under section 124D.11, subdivision 4, clause (1).

(b) For purposes of this deleted text begin subdivision deleted text end new text begin section and section 124D.11 new text end :

(1) A "related party" is an affiliate or close relative of the other party in question, an
affiliate of a close relative, or a close relative of an affiliate.

(2) "Affiliate" means a person that directly, or indirectly through one or more
intermediaries, controls, or is controlled by, or is under common control with, another
person.

(3) "Close relative" means an individual whose relationship by blood, marriage, or
adoption to another individual is no more remote than first cousin.

(4) "Person" means an individual or entity of any kind.

(5) "Control" includes the terms "controlling," "controlled by," and "under common
control with" and means the possession, direct or indirect, of the power to direct or cause
the direction of the management, operations, or policies of a person, whether through the
ownership of voting securities, by contract, or otherwise.

(c) A lease of real property to be used for a charter school, not excluded in paragraph
deleted text begin (b) deleted text end new text begin (a) new text end , must contain the following statement: "This lease is subject to Minnesota Statutes,
section 124D.10, subdivision 23a."

(d) If a charter school enters into as lessee a lease with a related party and the
charter school subsequently closes, the commissioner has the right to recover from the
lessor any lease payments in excess of those that are reasonable under section 124D.11,
subdivision 4, clause (1).

Sec. 11.

Minnesota Statutes 2006, section 124D.10, subdivision 24, is amended to read:

Subd. 24.

Pupil enrollment upon nonrenewal or termination of charter school
contract.

If a contract is not renewed or is terminated according to subdivision 23, a
pupil who attended the school, siblings of the pupil, or another pupil who resides in the
same place as the pupil may enroll in the resident district or may submit an application
to a nonresident district according to section 124D.03 at any time. Applications and
notices required by section 124D.03 must be processed and provided in a prompt manner.
The application and notice deadlines in section 124D.03 do not apply under these
circumstances. new text begin The closed charter school must transfer the student's educational records,
within ten business days of closure, to the student's school district of residence where the
records must be retained or transferred under section 120A.22, subdivision 7.
new text end

Sec. 12.

Minnesota Statutes 2006, section 124D.4531, subdivision 1, is amended to
read:

Subdivision 1.

Career and technical levy.

(a) A district with a career and technical
program approved under this section for the fiscal year in which the levy is certified
may levy an amount equal to the lesser of:

(1) $80 times the district's average daily membership new text begin served new text end in grades 10 through 12
for the fiscal year in which the levy is certified; or

(2) 25 percent of approved expenditures in the fiscal year in which the levy is
certified for the following:

(i) salaries paid to essential, licensed personnel providing direct instructional
services to students in that fiscal year for services rendered in the district's approved
career and technical education programs;

(ii) contracted services provided by a public or private agency other than a Minnesota
school district or cooperative center under subdivision 7;

(iii) necessary travel between instructional sites by licensed career and technical
education personnel;

(iv) necessary travel by licensed career and technical education personnel for
vocational student organization activities held within the state for instructional purposes;

(v) curriculum development activities that are part of a five-year plan for
improvement based on program assessment;

(vi) necessary travel by licensed career and technical education personnel for
noncollegiate credit-bearing professional development; and

(vii) specialized vocational instructional supplies.

(b) Up to ten percent of a district's career and technical levy may be spent on
equipment purchases. Districts using the career and technical levy for equipment
purchases must report to the department on the improved learning opportunities for
students that result from the investment in equipment.

(c) The district must recognize the full amount of this levy as revenue for the fiscal
year in which it is certified.

Sec. 13.

Minnesota Statutes 2006, section 124D.4531, subdivision 3, is amended to
read:

Subd. 3.

Levy guarantee.

Notwithstanding subdivision 1, the career and technical
education levy for a district is not less than the lesser of:

(1) the district's career and technical education levy authority for the previous
fiscal year; or

(2) 100 percent of the approved expenditures for career and technical programs
included in subdivision 1, paragraph deleted text begin (b) deleted text end new text begin (a) new text end , for the fiscal year in which the levy is certified.

Sec. 14.

new text begin [124D.645] MULTIRACIAL DIVERSITY.
new text end

new text begin (a) Notwithstanding other law or rule to the contrary, and in order to effectively
meet students' educational needs and foster parents' meaningful participation in their
children's education, a school district may apply to the commissioner for a waiver from
the requirement to maintain racial balance within a district school if the racial imbalance
in that school results from:
new text end

new text begin (1) the enrollment of protected multiracial students and the proportion of enrolled
multiracial students reflects the proportion of multiracial students who reside in the school
attendance area or who are enrolled in the grade levels served by the district; or
new text end

new text begin (2) the enrollment of limited English proficiency students in a transition program
that includes an intensive English component.
new text end

new text begin The commissioner must grant the waiver if the district in which the school is located offers
the multiracial students or the limited English proficiency students, as appropriate, the
option of enrolling in another school with the requisite racial balance, and the students'
parents choose not to pursue that option.
new text end

new text begin (b) This section is effective for the 2006-2007 through 2010-2011 school years or
until amended rules are adopted under Minnesota Rules, chapter 3535, pertaining to racial
diversity, whichever comes first.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 15.

Minnesota Statutes 2006, section 124D.84, subdivision 1, is amended to read:

Subdivision 1.

Awards.

The commissioner deleted text begin may award deleted text end new text begin shall establish procedures for
the distribution of new text end scholarships to any Minnesota resident student who is of one-fourth or
more Indian ancestry, who has applied for other existing state and federal scholarship and
grant programs, and who, in the opinion of the commissioner, new text begin based upon postsecondary
institution recommendations, new text end has the capabilities to benefit from further education.
Scholarships must be for accredited degree programs in accredited Minnesota colleges
or universities or for courses in accredited Minnesota business, technical, or vocational
schools. Scholarships may also be given to students attending Minnesota colleges that
are in candidacy status for obtaining full accreditation, and are eligible for and receiving
federal financial aid programs. Students are also eligible for scholarships when enrolled
as students in Minnesota higher education institutions that have joint programs with
other accredited higher education institutions. deleted text begin Scholarships shall be used to defray the
total cost of education including tuition, incidental fees, books, supplies, transportation,
other related school costs and the cost of board and room and shall be paid directly to the
college or school concerned where the student receives federal financial aid. The total cost
of education includes all tuition and fees for each student enrolling in a public institution
and the portion of tuition and fees for each student enrolling in a private institution that
does not exceed the tuition and fees at a comparable public institution. deleted text end Each student
shall be awarded a scholarship based on deleted text begin the total cost of the student's education and deleted text end
a federal standardized need analysis new text begin after application of federal Pell money, state grant
money, and other scholarships. Depending upon students' unmet needs, the Minnesota
Indian scholarship program may award up to the current federal Pell grant allowable
maximum student award per school year new text end . Applicants are encouraged to apply for all other
sources of financial aid.

When an Indian student satisfactorily completes the work required by a certain
college or school in a school year the student is eligible for additional scholarships, if
additional training is necessary to reach the student's educational and vocational objective.
Scholarships may not be given to any Indian student for more than five years of study new text begin at
the undergraduate level and five years at the graduate level. Students may acquire only
one degree per level and one terminal degree new text end .

Sec. 16. new text begin RULEMAKING AUTHORITY.
new text end

new text begin The commissioner of education shall adopt rules for implementing and administering
the graduation-required assessment for diploma (GRAD) in reading and mathematics
and in writing, consistent with Minnesota Statutes, section 120B.30, subdivision 1, and
for public review of the GRAD test. The rules must specify the GRAD requirements
that apply to students in unique circumstances including dual enrolled students, English
language learners, foreign exchange students, home school students, open enrollment
students, Minnesota postsecondary enrollment options students, shared-time students,
transfer students from other states, and district-placed students and students attending
school under a tuition agreement. The rules must establish the criteria for determining
individualized GRAD passing scores for students with an individual education plan or
a Section 504 plan and for using an alternative assessment when a student's individual
education plan team decides to replace the GRAD test.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 17. new text begin RULEMAKING REQUIRED.
new text end

new text begin (a) Notwithstanding the time limit in Minnesota Statutes, section 14.125, the Board
of Teaching must adopt the rules it was mandated to adopt under Laws 2003, chapter 129,
article 1, section 10. The board must publish a notice of intent to adopt rules or a notice of
hearing for rules subject to this section before January 1, 2008.
new text end

new text begin (b) The failure of a board member to comply with paragraph (a) is a willful failure to
perform a specific act that is a required part of the duties of a public official and is cause
for removal under Minnesota Statutes, section 15.0575, subdivision 4.
new text end

new text begin (c) The Board of Teaching may charge fees to issue new credentials and to renew
credentials for paraprofessionals issued credentials under the rules adopted under this
section.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 18. new text begin REVISOR'S INSTRUCTION.
new text end

new text begin In Minnesota Statutes, the revisor of statutes shall codify Minnesota Statutes,
section 124D.10, subdivision 23a, paragraph (b), as Minnesota Statutes, section 124D.10,
subdivision 26.
new text end

Sec. 19. new text begin REPEALER.
new text end

new text begin Minnesota Statutes 2006, section 124D.62, new text end new text begin is repealed.
new text end

ARTICLE 3

SPECIAL PROGRAMS

Section 1.

Minnesota Statutes 2006, section 125A.11, subdivision 1, is amended to read:

Subdivision 1.

Nonresident tuition rate; other costs.

(a) For fiscal year 2006,
when a school district provides instruction and services outside the district of residence,
board and lodging, and any tuition to be paid, shall be paid by the district of residence.
The tuition rate to be charged for any child with a disability, excluding a pupil for whom
tuition is calculated according to section 127A.47, subdivision 7, paragraph (d), must be
the sum of (1) the actual cost of providing special instruction and services to the child
including a proportionate amount for special transportation and unreimbursed building
lease and debt service costs for facilities used primarily for special education, plus (2)
the amount of general education revenue and referendum aid attributable to the pupil,
minus (3) the amount of special education aid for children with a disability received
on behalf of that child, minus (4) if the pupil receives special instruction and services
outside the regular classroom for more than 60 percent of the school day, the amount of
general education revenue and referendum aid, excluding portions attributable to district
and school administration, district support services, operations and maintenance, capital
expenditures, and pupil transportation, attributable to that pupil for the portion of time
the pupil receives special instruction and services outside of the regular classroom. If
the boards involved do not agree upon the tuition rate, either board may apply to the
commissioner to fix the rate. Notwithstanding chapter 14, the commissioner must then set
a date for a hearing or request a written statement from each board, giving each board
at least ten days' notice, and after the hearing or review of the written statements the
commissioner must make an order fixing the tuition rate, which is binding on both school
districts. General education revenue and referendum new text begin equalization new text end aid attributable to a
pupil must be calculated using the resident district's average general education new text begin revenue
new text end and referendum deleted text begin revenue deleted text end new text begin equalization aid new text end per adjusted pupil unit.

(b) For fiscal year 2007 and later, when a school district provides special instruction
and services for a pupil with a disability as defined in section 125A.02 outside the district
of residence, excluding a pupil for whom an adjustment to special education aid is
calculated according to section 127A.47, subdivision 7, paragraph (e), special education
aid paid to the resident district must be reduced by an amount equal to (1) the actual
cost of providing special instruction and services to the pupil, including a proportionate
amount for special transportation and unreimbursed building lease and debt service
costs for facilities used primarily for special education, plus (2) the amount of general
education revenue and referendum new text begin equalization new text end aid attributable to that pupil, minus (3)
the amount of special education aid for children with a disability received on behalf of
that child, minus (4) if the pupil receives special instruction and services outside the
regular classroom for more than 60 percent of the school day, the amount of general
education revenue and referendum new text begin equalization new text end aid, excluding portions attributable to
district and school administration, district support services, operations and maintenance,
capital expenditures, and pupil transportation, attributable to that pupil for the portion of
time the pupil receives special instruction and services outside of the regular classroom.
General education revenue and referendum new text begin equalization new text end aid attributable to a pupil must be
calculated using the resident district's average general education revenue and referendum
new text begin equalization new text end aid per adjusted pupil unit. Special education aid paid to the district or
cooperative providing special instruction and services for the pupil must be increased
by the amount of the reduction in the aid paid to the resident district. Amounts paid
to cooperatives under this subdivision and section 127A.47, subdivision 7, shall be
recognized and reported as revenues and expenditures on the resident school district's
books of account under sections 123B.75 and 123B.76. If the resident district's special
education aid is insufficient to make the full adjustment, the remaining adjustment shall be
made to other state aid due to the district.

(c) Notwithstanding paragraphs (a) and (b) and section 127A.47, subdivision 7,
paragraphs (d) and (e), a charter school where more than 30 percent of enrolled students
receive special education and related services, new text begin a site approved under section 125A.515,
new text end an intermediate district, a special education cooperative, or a school district that served
as the applicant agency for a group of school districts for federal special education aids
for fiscal year 2006 may apply to the commissioner for authority to charge the resident
district an additional amount to recover any remaining unreimbursed costs of serving
pupils with a disability. The application must include a description of the costs and the
calculations used to determine the unreimbursed portion to be charged to the resident
district. Amounts approved by the commissioner under this paragraph must be included
in the tuition billings or aid adjustments under paragraph (a) or (b), or section 127A.47,
subdivision 7, paragraph (d) or (e), as applicable.

(d) For purposes of this subdivision and section 127A.47, subdivision 7, paragraphs
(d) and (e), "general education revenue and referendum aid" means the sum of the general
education revenue according to section 126C.10, subdivision 1, excluding alternative
teacher compensation revenue, plus the referendum aid according to section 126C.17,
subdivision 7, as adjusted according to section 127A.47, subdivision 7, paragraphs (a)
to (c).

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 2.

Minnesota Statutes 2006, section 125A.14, is amended to read:

125A.14 deleted text begin SUMMER PROGRAMS deleted text end new text begin EXTENDED SCHOOL YEAR new text end .

A district may provide deleted text begin summer programs deleted text end new text begin extended school year services new text end for children
with a disability living within the district and nonresident children temporarily placed in
the district pursuant to section 125A.15 or 125A.16. Prior to March 31 or 30 days after the
child with a disability is placed in the district, whichever is later, the providing district
shall give notice to the district of residence of any nonresident children temporarily placed
in the district pursuant to section 125A.15 or 125A.16, of its intention to provide these
programs. Notwithstanding any contrary provisions in sections 125A.15 and 125A.16, the
district providing the special instruction and services must apply for special education
aid for the deleted text begin summer program deleted text end new text begin extended school year services new text end . The unreimbursed actual cost
of providing the program for nonresident children with a disability, including the cost of
board and lodging, may be billed to the district of the child's residence and must be paid
by the resident district. Transportation costs must be paid by the district responsible
for providing transportation pursuant to section 125A.15 or 125A.16 and transportation
aid must be paid to that district.

Sec. 3.

Minnesota Statutes 2006, section 125A.75, subdivision 1, is amended to read:

Subdivision 1.

Travel aid.

The state must pay each district one-half of the sum
actually expended by a district, based on mileage, for necessary travel of essential
personnel providing home-based new text begin or community-based new text end services to children with a disability
under age five and their families.

Sec. 4.

Minnesota Statutes 2006, section 125A.75, subdivision 4, is amended to read:

Subd. 4.

Program and aid approval.

Before June 1 of each year, each district
providing special instruction and services to children with a disability must submit to
the commissioner an application for approval of these programs and their budgets for
the next fiscal year. The application must include an enumeration of the costs proposed
as eligible for state aid pursuant to this section and of the estimated number and grade
level of children with a disability in the district who will receive special instruction and
services deleted text begin during the regular school year and in summer school programs deleted text end during the next
fiscal year. The application must also include any other information deemed necessary by
the commissioner for the calculation of state aid and for the evaluation of the necessity
of the program, the necessity of the personnel to be employed in the program, for
determining the amount which the program will receive from grants from federal funds,
or special grants from other state sources, and the program's compliance with the rules
and standards of the Department of Education. The commissioner shall review each
application to determine whether the program and the personnel to be employed in the
program are actually necessary and essential to meet the district's obligation to provide
special instruction and services to children with a disability pursuant to sections 125A.03
to 125A.24, 125A.259 to 125A.48, and 125A.65. The commissioner shall not approve aid
pursuant to this section for any program or for the salary of any personnel determined to
be unnecessary or unessential on the basis of this review. The commissioner may withhold
all or any portion of the aid for programs which receive grants from federal funds, or
special grants from other state sources. By August 31 the commissioner shall approve,
disapprove, or modify each application, and notify each applying district of the action
and of the estimated amount of aid for the programs. The commissioner shall provide
procedures for districts to submit additional applications for program and budget approval
during the fiscal year, for programs needed to meet any substantial changes in the needs
of children with a disability in the district. Notwithstanding the provisions of section
127A.42, the commissioner may modify or withdraw the program or aid approval and
withhold aid pursuant to this section without proceeding according to section 127A.42
at any time the commissioner determines that the program does not comply with rules
of the Department of Education or that any facts concerning the program or its budget
differ from the facts in the district's approved application.

Sec. 5.

Minnesota Statutes 2006, section 125A.76, subdivision 2, is amended to read:

Subd. 2.

Special education base revenue.

(a) The special education base revenue
equals the sum of the following amounts computed using base year data:

(1) 68 percent of the salary of each essential person employed in the district's
program for children with a disability during the fiscal year, whether the person is
employed by one or more districts or a Minnesota correctional facility operating on a
fee-for-service basis;

(2) for the Minnesota State Academy for the Deaf or the Minnesota State Academy
for the Blind, 68 percent of the salary of each instructional aide assigned to a child
attending the academy, if that aide is required by the child's individual education plan;

(3) for special instruction and services provided to any pupil by contracting with
public, private, or voluntary agencies other than school districts, in place of special
instruction and services provided by the district, 52 percent of the difference between
the amount of the contract and deleted text begin the amount of the basic revenue, as defined in section
126C.10, subdivision 2, special education aid, and any other aid earned on behalf of the
child deleted text end new text begin the general education revenue, excluding basic skills revenue and alternative teacher
compensation revenue, and referendum equalization aid attributable to a pupil, calculated
using the resident district's average general education revenue and referendum equalization
aid per adjusted pupil unit new text end for the fraction of the school day the pupil receives services
under the contract new text begin . This includes children who are residents of the state, receive services
under section 125A.76, subdivisions 1 and 2, and are placed in a care and treatment facility
by court action in a state that does not have a reciprocity agreement with the commissioner
under section 125A.155 as provided for in section 125A.79, subdivision 8 new text end ;

(4) for special instruction and services provided to any pupil by contracting for
services with public, private, or voluntary agencies other than school districts, that are
supplementary to a full educational program provided by the school district, 52 percent of
the amount of the contract for that pupil;

(5) for supplies and equipment purchased or rented for use in the instruction of
children with a disability, an amount equal to 47 percent of the sum actually expended by
the district, or a Minnesota correctional facility operating on a fee-for-service basis, but
not to exceed an average of $47 in any one school year for each child with a disability
receiving instruction;

(6) for fiscal years 1997 and later, special education base revenue shall include
amounts under clauses (1) to (5) for special education summer programs provided during
the base year for that fiscal year; and

(7) for fiscal years 1999 and later, the cost of providing transportation services for
children with disabilities under section 123B.92, subdivision 1, paragraph (b), clause (4).

The department shall establish procedures through the uniform financial accounting
and reporting system to identify and track all revenues generated from third-party billings
as special education revenue at the school district level; include revenue generated from
third-party billings as special education revenue in the annual cross-subsidy report; and
exclude third-party revenue from calculation of excess cost aid to the districts.

(b) If requested by a school district operating a special education program during
the base year for less than the full fiscal year, or a school district in which is located a
Minnesota correctional facility operating on a fee-for-service basis for less than the full
fiscal year, the commissioner may adjust the base revenue to reflect the expenditures
that would have occurred during the base year had the program been operated for the
full fiscal year.

(c) Notwithstanding paragraphs (a) and (b), the portion of a school district's base
revenue attributable to a Minnesota correctional facility operating on a fee-for-service
basis during the facility's first year of operating on a fee-for-service basis shall be
computed using current year data.

Sec. 6.

Minnesota Statutes 2006, section 125A.79, subdivision 8, is amended to read:

Subd. 8.

Out-of-state tuition.

For children who are residents of the state, receive
services under section 125A.76, subdivisions 1 and 2, and are placed in a care and
treatment facility by court action in a state that does not have a reciprocity agreement
with the commissioner under section 125A.155, the resident school district shall submit
the balance of the tuition bills, minus deleted text begin the amount of the basic revenue, as defined by
section 126C.10, subdivision 2, of the district for the child and deleted text end new text begin the general education
revenue, excluding basic skills revenue and alternative teacher compensation revenue,
and referendum equalization aid attributable to the pupil, calculated using the resident
district's average general education revenue and referendum equalization aid per adjusted
pupil unit minus new text end the special education deleted text begin aid, and any other aid earned on behalf of the child deleted text end new text begin
contracted services base revenue attributable to the pupil new text end .

Sec. 7.

Minnesota Statutes 2006, section 127A.47, subdivision 7, is amended to read:

Subd. 7.

Alternative attendance programs.

The general education aid and special
education aid for districts must be adjusted for each pupil attending a nonresident district
under sections 123A.05 to 123A.08, 124D.03, 124D.06, 124D.08, and 124D.68. The
adjustments must be made according to this subdivision.

(a) General education aid paid to a resident district must be reduced by an amount
equal to the referendum equalization aid attributable to the pupil in the resident district.

(b) General education aid paid to a district serving a pupil in programs listed in this
subdivision must be increased by an amount equal to the referendum equalization aid
attributable to the pupil in the nonresident district.

(c) If the amount of the reduction to be made from the general education aid of the
resident district is greater than the amount of general education aid otherwise due the
district, the excess reduction must be made from other state aids due the district.

(d) For fiscal year 2006, the district of residence must pay tuition to a district or an
area learning center, operated according to paragraph (f), providing special instruction and
services to a pupil with a disability, as defined in section 125A.02, or a pupil, as defined in
section 125A.51, who is enrolled in a program listed in this subdivision. The tuition must
be equal to (1) the actual cost of providing special instruction and services to the pupil,
including a proportionate amount for special transportation and unreimbursed building
lease and debt service costs for facilities used primarily for special education, minus (2) if
the pupil receives special instruction and services outside the regular classroom for more
than 60 percent of the school day, the amount of general education revenue and referendum
new text begin equalization new text end aid attributable to that pupil for the portion of time the pupil receives special
instruction and services outside of the regular classroom, excluding portions attributable to
district and school administration, district support services, operations and maintenance,
capital expenditures, and pupil transportation, minus (3) special education aid attributable
to that pupil, that is received by the district providing special instruction and services.
For purposes of this paragraph, general education revenue and referendum new text begin equalization
new text end aid attributable to a pupil must be calculated using the serving district's average general
education revenue and referendum new text begin equalization new text end aid per adjusted pupil unit.

(e) For fiscal year 2007 and later, special education aid paid to a resident district
must be reduced by an amount equal to (1) the actual cost of providing special instruction
and services, including special transportation and unreimbursed building lease and debt
service costs for facilities used primarily for special education, for a pupil with a disability,
as defined in section 125A.02, or a pupil, as defined in section 125A.51, who is enrolled
in a program listed in this subdivision, minus (2) if the pupil receives special instruction
and services outside the regular classroom for more than 60 percent of the school day,
the amount of general education revenue and referendum new text begin equalization new text end aid attributable
to that pupil for the portion of time the pupil receives special instruction and services
outside of the regular classroom, excluding portions attributable to district and school
administration, district support services, operations and maintenance, capital expenditures,
and pupil transportation, minus (3) special education aid attributable to that pupil, that is
received by the district providing special instruction and services. For purposes of this
paragraph, general education revenue and referendum new text begin equalization new text end aid attributable to a
pupil must be calculated using the serving district's average general education revenue
and referendum new text begin equalization new text end aid per adjusted pupil unit. Special education aid paid to the
district or cooperative providing special instruction and services for the pupil, or to the
fiscal agent district for a cooperative, must be increased by the amount of the reduction
in the aid paid to the resident district. If the resident district's special education aid is
insufficient to make the full adjustment, the remaining adjustment shall be made to other
state aids due to the district.

(f) An area learning center operated by a service cooperative, intermediate district,
education district, or a joint powers cooperative may elect through the action of the
constituent boards to charge the resident district tuition for pupils rather than to have the
general education revenue paid to a fiscal agent school district. Except as provided in
paragraph (d) or (e), the district of residence must pay tuition equal to at least 90 percent
of the district average general education revenue per pupil unit minus an amount equal to
the product of the formula allowance according to section 126C.10, subdivision 2, times
.0485, calculated without basic skills revenue and transportation sparsity revenue, times
the number of pupil units for pupils attending the area learning center, plus the amount of
compensatory revenue generated by pupils attending the area learning center.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 8.

Minnesota Statutes 2006, section 626.556, subdivision 11, is amended to read:

Subd. 11.

Records.

(a) Except as provided in paragraph (b) or deleted text begin (d) deleted text end new text begin (e) new text end and
subdivisions 10b, 10d, 10g, and 11b, all records concerning individuals maintained by a
local welfare agency or agency responsible for assessing or investigating the report under
this section, including any written reports filed under subdivision 7, shall be private data
on individuals, except insofar as copies of reports are required by subdivision 7 to be sent
to the local police department or the county sheriff. All records concerning determinations
of maltreatment by a facility are nonpublic data as maintained by the Department of
Education, except insofar as copies of reports are required by subdivision 7 to be sent
to the local police department or the county sheriff. Reports maintained by any police
department or the county sheriff shall be private data on individuals except the reports
shall be made available to the investigating, petitioning, or prosecuting authority, including
county medical examiners or county coroners. Section 13.82, subdivisions 8, 9, and 14,
apply to law enforcement data other than the reports. The local social services agency or
agency responsible for assessing or investigating the report shall make available to the
investigating, petitioning, or prosecuting authority, including county medical examiners or
county coroners or their professional delegates, any records which contain information
relating to a specific incident of neglect or abuse which is under investigation, petition, or
prosecution and information relating to any prior incidents of neglect or abuse involving
any of the same persons. The records shall be collected and maintained in accordance with
the provisions of chapter 13. In conducting investigations and assessments pursuant to
this section, the notice required by section 13.04, subdivision 2, need not be provided to a
minor under the age of ten who is the alleged victim of abuse or neglect. An individual
subject of a record shall have access to the record in accordance with those sections,
except that the name of the reporter shall be confidential while the report is under
assessment or investigation except as otherwise permitted by this subdivision. Any person
conducting an investigation or assessment under this section who intentionally discloses
the identity of a reporter prior to the completion of the investigation or assessment is
guilty of a misdemeanor. After the assessment or investigation is completed, the name of
the reporter shall be confidential. The subject of the report may compel disclosure of the
name of the reporter only with the consent of the reporter or upon a written finding by
the court that the report was false and that there is evidence that the report was made in
bad faith. This subdivision does not alter disclosure responsibilities or obligations under
the Rules of Criminal Procedure.

(b) Upon request of the legislative auditor, data on individuals maintained under
this section must be released to the legislative auditor in order for the auditor to fulfill the
auditor's duties under section 3.971. The auditor shall maintain the data in accordance
with chapter 13.

(c) The commissioner of education must be provided with all requested data that are
relevant to a report of maltreatment and are in possession of a school facility as defined
in subdivision 2, paragraph (i), when the data is requested pursuant to an assessment or
investigation of a maltreatment report of a student in a school. If the commissioner of
education makes a determination of maltreatment involving an individual performing
work within a school facility who is licensed by a board or other agency, the commissioner
shall provide necessary and relevant information to the licensing entity to enable the
entity to fulfill its statutory duties. Notwithstanding section 13.03, subdivision 4, data
received by a licensing entity under this paragraph are governed by section 13.41 or other
applicable law governing data of the receiving entity, except that this section applies to the
classification of and access to data on the reporter of the maltreatment.

new text begin (d) Data generated, collected, or maintained in the course of a maltreatment
investigation conducted by the commissioner of education is confidential data under
subdivision 7 sent to the local law enforcement agency under subdivision 7. Data on a
closed or inactive maltreatment investigation by the commissioner of education is private
data may be sent to the local law enforcement agency under subdivision 7.
new text end

deleted text begin (d) deleted text end new text begin (e) new text end The investigating agency shall exchange not public data with the Child
Maltreatment Review Panel under section 256.022 if the data are pertinent and necessary
for a review requested under section 256.022. Upon completion of the review, the not
public data received by the review panel must be returned to the investigating agency.

Sec. 9. new text begin REPEALER.
new text end

new text begin Minnesota Statutes 2006, sections 125A.10; and 125A.75, subdivision 6, new text end new text begin are
repealed.
new text end

ARTICLE 4

FACILITIES AND TECHNOLOGY

Section 1.

Minnesota Statutes 2006, section 123B.63, subdivision 3, is amended to read:

Subd. 3.

Capital project levy referendum.

A district may levy the local tax
rate approved by a majority of the electors voting on the question to provide funds for
an approved project. The election must take place no more than five years before the
estimated date of commencement of the project. The referendum must be held on a date
set by the board. A referendum for a project not receiving a positive review and comment
by the commissioner under section 123B.71 must be approved by at least 60 percent of the
voters at the election. The referendum may be called by the school board and may be held:

(1) separately, before an election for the issuance of obligations for the project
under chapter 475; or

(2) in conjunction with an election for the issuance of obligations for the project
under chapter 475; or

(3) notwithstanding section 475.59, as a conjunctive question authorizing both the
capital project levy and the issuance of obligations for the project under chapter 475. Any
obligations authorized for a project may be issued within five years of the date of the
election.

The ballot must provide a general description of the proposed project, state the
estimated total cost of the project, state whether the project has received a positive or
negative review and comment from the commissioner, state the maximum amount of the
capital project levy as a percentage of net tax capacity, state the amount that will be raised
by that local tax rate in the first year it is to be levied, and state the maximum number of
years that the levy authorization will apply.

The ballot must contain a textual portion with the information required in this
section and a question stating substantially the following:

"Shall the capital project levy proposed by the board of .......... School District
No. .......... be approved?"

If approved, the amount provided by the approved local tax rate applied to the net
tax capacity for the year preceding the year the levy is certified may be certified for the
number of years new text begin , not to exceed ten, new text end approved.

In the event a conjunctive question proposes to authorize both the capital project
levy and the issuance of obligations for the project, appropriate language authorizing the
issuance of obligations must also be included in the question.

The district must notify the commissioner of the results of the referendum.

ARTICLE 5

NUTRITION AND ACCOUNTING

Section 1.

Minnesota Statutes 2006, section 123B.79, is amended by adding a
subdivision to read:

new text begin Subd. 9. new text end

new text begin Elimination of reserve accounts. new text end

new text begin A school board shall eliminate all
reserve accounts established in the school district's general fund under Minnesota Statutes
before July 1, 2006, for which no specific authority remains in statute as of June 30,
2007. Any balance in the district's reserved for bus purchases account as of June 30,
2007, shall be transferred to the reserved account for operating capital in the school
district's general fund. Any balance in other reserved accounts established in the school
district's general fund under Minnesota Statutes before July 1, 2006, for which no specific
authority remains in statute as of June 30, 2007, shall be transferred to the school district's
unreserved general fund balance. A school board may, upon adoption of a resolution by
the school board, establish a designated account for any program for which a reserved
account has been eliminated.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective June 30, 2007.
new text end

ARTICLE 6

LIBRARIES

Section 1.

Minnesota Statutes 2006, section 134.31, is amended by adding a
subdivision to read:

new text begin Subd. 4a. new text end

new text begin Services to the blind and physically handicapped. new text end

new text begin The Minnesota
Department of Education shall provide specialized services to the blind and physically
handicapped through the Minnesota Library for the Blind and Physically Handicapped
under a cooperative plan with the National Library Services for the Blind and Physically
Handicapped of the Library of Congress.
new text end

ARTICLE 7

EARLY CHILDHOOD EDUCATION

Section 1.

Minnesota Statutes 2006, section 119A.52, is amended to read:

119A.52 DISTRIBUTION OF APPROPRIATION.

new text begin (a) new text end The commissioner of education must distribute money appropriated for that
purpose to federally designated Head Start programs to expand services and to serve
additional low-income children. Migrant and Indian reservation programs must be initially
allocated money based on the programs' share of federal funds. The remaining money
must be initially allocated to the remaining local agencies based equally on the agencies'
share of federal funds and on the proportion of eligible children in the agencies' service
area who are not currently being served. A Head Start deleted text begin grantee deleted text end new text begin program new text end must be funded
at a per child rate equal to its contracted, federally funded base level at the start of the
fiscal year. In allocating funds under this paragraph, the commissioner of education
must assure that each Head Start program in existence in 1993 is allocated no less
funding in any fiscal year than was allocated to that program in fiscal year 1993. Before
paying money to the programs, the commissioner must notify each program of its initial
allocation, how the money must be used, and the number of low-income children to be
served with the allocation based upon the federally funded per child rate. Each program
must present a plan under section 119A.535. For any deleted text begin grantee deleted text end new text begin program new text end that cannot utilize
its full allocation new text begin at the beginning of the fiscal year new text end , the commissioner must reduce the
allocation proportionately. Money available after the initial allocations are reduced must
be redistributed to eligible deleted text begin grantees deleted text end new text begin programs new text end .

new text begin (b) The commissioner must develop procedures to make payments to programs
based upon the number of children reported to be enrolled during the required time
period of program operations. Enrollment is defined by federal Head Start regulations.
The procedures must include a reporting schedule, corrective action plan requirements,
and financial consequences to be imposed on programs that do not meet full enrollment
after the period of corrective action. Programs reporting chronic underenrollment, as
defined by the commissioner, will have their subsequent program year allocation reduced
proportionately. Funds made available by prorating payments and allocations to programs
with reported underenrollment will be made available to the extent funds exist to fully
enrolled Head Start programs through a form and manner prescribed by the department.
new text end

Sec. 2.

Minnesota Statutes 2006, section 119A.535, is amended to read:

119A.535 APPLICATION REQUIREMENTS.

Eligible Head Start organizations must submit a plan to the department for approval
on a form and in the manner prescribed by the commissioner. The plan must include:

(1) the deleted text begin estimated deleted text end number of low-income children and families the program will be
able to serve;

(2) a description of the program design and service delivery area which meets the
needs of and encourages access by low-income working families;

(3) a program design that ensures fair and equitable access to Head Start services for
all populations and parts of the service area;

(4) a plan for deleted text begin coordinating services to maximize assistance for child care costs
available to families under chapter 119B deleted text end new text begin providing Head Start services in conjunction with
full-day child care programs to minimize child transitions, increase program intensity and
duration, and improve child and family outcomes as required in section 119A.541 new text end ; and

(5) identification of regular Head Start, early Head Start, new text begin full-day services provided
in child care settings as required by section 119A.541, new text end and innovative services based
upon demonstrated needs to be provided.

Sec. 3.

new text begin [119A.541] FULL-DAY REQUIREMENTS.
new text end

new text begin The commissioner must require the following phase-in of full-day services in
licensed child care centers or family child care homes as defined in chapter 245A:
new text end

new text begin (1) by fiscal year 2009, every program must provide Head Start services in at least
one full-day child care center or family child care home;
new text end

new text begin (2) by fiscal year 2011, every program must provide Head Start services in at least
one full-day child care setting in each of the counties served by the program; and
new text end

new text begin (3) by fiscal year 2013, a minimum of 50 percent of state-funded enrollment must be
provided through agreements with licensed full-day child care programs.
new text end

new text begin If licensed child care providers do not exist in a necessary geographic area, choose
not to participate, or cannot meet the federal Head Start performance standards after
sufficient opportunity, Head Start programs may choose to establish the full-day services
as a part of their own program model or request exemption from this requirement from
the commissioner.
new text end

Sec. 4.

Minnesota Statutes 2006, section 120A.05, is amended by adding a subdivision
to read:

new text begin Subd. 9a. new text end

new text begin Full-day kindergarten. new text end

new text begin "Full-day kindergarten" means an academic
program that prepares pupils to enter first grade the following school year, is provided
for a minimum of 850 hours in a school year, includes curriculum and instruction under
section 120B.11, and aligns with academic standards under section 120B.021, subdivision
1. Learning activities provided as a part of a community education program are not
full-day kindergarten.
new text end

Sec. 5.

Minnesota Statutes 2006, section 123B.36, subdivision 1, is amended to read:

Subdivision 1.

School boards may require fees.

(a) For purposes of this
subdivision, "home school" means a home school as defined in sections 120A.22 and
120A.24 with five or fewer students receiving instruction.

(b) A school board is authorized to require payment of fees in the following areas:

(1) in any program where the resultant product, in excess of minimum requirements
and at the pupil's option, becomes the personal property of the pupil;

(2) admission fees or charges for extracurricular activities, where attendance
is optional and where the admission fees or charges a student must pay to attend or
participate in an extracurricular activity is the same for all students, regardless of whether
the student is enrolled in a public or a home school;

(3) a security deposit for the return of materials, supplies, or equipment;

(4) personal physical education and athletic equipment and apparel, although any
pupil may personally provide it if it meets reasonable requirements and standards relating
to health and safety established by the board;

(5) items of personal use or products that a student has an option to purchase such as
student publications, class rings, annuals, and graduation announcements;

(6) fees specifically permitted by any other statute, including but not limited to
section 171.05, subdivision 2; provided (i) driver education fees do not exceed the actual
cost to the school and school district of providing driver education, and (ii) the driver
education courses are open to enrollment to persons between the ages of 15 and 18 who
reside or attend school in the school district;

(7) field trips considered supplementary to a district educational program;

(8) any authorized voluntary student health and accident benefit plan;

(9) for the use of musical instruments owned or rented by the district, a reasonable
rental fee not to exceed either the rental cost to the district or the annual depreciation plus
the actual annual maintenance cost for each instrument;

(10) transportation of pupils to and from extracurricular activities conducted at
locations other than school, where attendance is optional;

(11) transportation to and from school of pupils living within two miles from school
and all other transportation services not required by law. If a district charges fees for
transportation of pupils, it must establish guidelines for that transportation to ensure that
no pupil is denied transportation solely because of inability to pay;

(12) motorcycle classroom education courses conducted outside of regular school
hours; provided the charge must not exceed the actual cost of these courses to the school
district;

(13) transportation to and from postsecondary institutions for pupils enrolled under
the postsecondary enrollment options program under section 123B.88, subdivision 22.
Fees collected for this service must be reasonable and must be used to reduce the cost
of operating the route. Families who qualify for mileage reimbursement under section
124D.09, subdivision 22, may use their state mileage reimbursement to pay this fee. If
no fee is charged, districts must allocate costs based on the number of pupils riding the
route new text begin ; and
new text end

new text begin (14) the unreimbursed cost of a prekindergarten program, or the additional cost
of an optional full-day kindergarten program in a district that also provides a half-time
kindergarten option, except that no fee shall be charged for providing a child with
a disability a free and appropriate public education in accordance with the child's
individualized education program according to section 125A.03. If a district charges fees
for prekindergarten or full-day kindergarten programs, it must establish a reasonable
sliding fee scale but it shall waive the fee for a participant unable to pay new text end .

Sec. 6.

Minnesota Statutes 2006, section 123B.37, subdivision 1, is amended to read:

Subdivision 1.

Boards shall not charge certain fees.

(a) A board is not authorized
to charge fees in the following areas:

(1) textbooks, workbooks, art materials, laboratory supplies, towels;

(2) supplies necessary for participation in any instructional course except as
authorized in sections 123B.36 and 123B.38;

(3) field trips that are required as a part of a basic education program or course;

(4) graduation caps, gowns, any specific form of dress necessary for any educational
program, and diplomas;

(5) instructional costs for necessary school personnel employed in any course or
educational program required for graduation new text begin except as authorized in section 123B.36,
subdivision 1, paragraph (14) new text end ;

(6) library books required to be utilized for any educational course or program;

(7) admission fees, dues, or fees for any activity the pupil is required to attend;

(8) any admission or examination cost for any required educational course or
program;

(9) locker rentals;

(10) transportation to and from school of pupils living two miles or more from
school.

(b) Notwithstanding paragraph (a), clauses (1) and (6), a board may charge fees
for textbooks, workbooks, and library books, lost or destroyed by students. The board
must annually notify parents or guardians and students about its policy to charge a fee
under this paragraph.

new text begin (c) A school board must not charge a fee to a person serving in active military
service under section 190.05, subdivision 5, who requests that the school district or
charter school transmit a copy of the person's transcript to a postsecondary institution or
prospective employer. The school district or charter school may request reasonable proof
of the service member's current military duty status.
new text end

ARTICLE 8

SELF-SUFFICIENCY AND LIFELONG LEARNING

Section 1.

Minnesota Statutes 2006, section 124D.531, subdivision 4, is amended to
read:

Subd. 4.

Adult basic education program aid limit.

(a) Notwithstanding
subdivisions 2 and 3, the total adult basic education aid for a program per prior year
contact hour must not exceed $21 per prior year contact hour computed under subdivision
3, clause (2).

deleted text begin (b) For fiscal year 2004, the aid for a program under subdivision 3, clause (2),
adjusted for changes in program membership, must not exceed the aid for that program
under subdivision 3, clause (2), for fiscal year 2003 by more than the greater of eight
percent or $10,000.
deleted text end

deleted text begin (c) For fiscal year 2005, the aid for a program under subdivision 3, clause (2),
adjusted for changes in program membership, must not exceed the sum of the aid for that
program under subdivision 3, clause (2), and Laws 2003, First Special Session chapter 9,
article 9, section 8, paragraph (a), for the preceding fiscal year by more than the greater of
eight percent or $10,000.
deleted text end

deleted text begin (d) deleted text end new text begin (b) new text end For fiscal year 2006 and deleted text begin later deleted text end new text begin fiscal year 2007 new text end , the aid for a program under
subdivision 3, clause (2), adjusted for changes in program membership, must not exceed
the aid for that program under subdivision 3, clause (2), for the first preceding fiscal year
by more than the greater of eight percent or $10,000.

new text begin (c) For fiscal year 2008 and later, the aid for a program under subdivision 3,
clause (2), adjusted for changes in program membership, must not exceed the aid for
that program under subdivision 3, clause (2), for the first preceding fiscal year by more
than the greater of 11 percent or $14,000.
new text end

deleted text begin (e) deleted text end new text begin (d) new text end Adult basic education aid is payable to a program for unreimbursed costs
occurring in the program year as defined in section 124D.52, subdivision 3.

deleted text begin (f) deleted text end new text begin (e) new text end Any adult basic education aid that is not paid to a program because of the
program aid limitation under paragraph (a) must be added to the state total adult basic
education aid for the next fiscal year under subdivision 1. Any adult basic education aid
that is not paid to a program because of the program aid limitations under paragraph (b),
(c), or (d), must be reallocated among programs by adjusting the rate per contact hour
under subdivision 3, clause (2).

Sec. 2.

Minnesota Statutes 2006, section 124D.55, is amended to read:

124D.55 GENERAL EDUCATION DEVELOPMENT (GED) TEST FEES.

The commissioner shall pay 60 percent of the fee that is charged to an eligible
individual for the full battery of a general education development (GED) test, but not
more than deleted text begin $20 deleted text end new text begin $40 new text end for an eligible individual.

Sec. 3. new text begin REPEALER.
new text end

new text begin Minnesota Statutes 2006, section 124D.531, subdivision 5, new text end new text begin is repealed.
new text end