HF 2245

2nd Engrossment - 85th Legislature (2007 - 2008) Posted on 12/15/2009 12:00am

A bill for an act
relating to education; providing for policy and funding for early childhood,
family, adult, and prekindergarten through grade 12 education including general
education, education excellence, special programs, facilities and technology,
nutrition and accounting, libraries, state agencies, pupil transportation standards,
early childhood and adult programs; education forecast adjustments, and
technical and conforming amendments; providing for task force and advisory
groups; requiring reports; authorizing rulemaking; funding parenting centers;
funding lead hazard reduction; appropriating money; amending Minnesota
Statutes 2006, sections 16A.152, subdivision 2; 119A.50, by adding a
subdivision; 119A.52; 119A.535; 120A.22, subdivision 7; 120B.021, subdivision
1; 120B.022, subdivision 1; 120B.024; 120B.12, subdivision 2; 120B.132;
120B.15; 120B.30; 120B.31, subdivision 3; 120B.36, subdivision 1; 121A.17,
subdivision 5; 122A.20, subdivision 1; 122A.61, by adding a subdivision;
122A.628, subdivision 2; 122A.72, subdivision 5; 123A.44; 123A.441;
123A.442; 123A.443; 123A.73, subdivision 8; 123B.02, by adding a subdivision;
123B.10, subdivision 1; 123B.143, subdivision 1; 123B.53, subdivision 1;
123B.54; 123B.57, subdivision 3; 123B.63, subdivision 3; 123B.77, subdivision
4; 123B.79, subdivisions 6, 8, by adding a subdivision; 123B.81, subdivisions
2, 4, 7; 123B.83, subdivision 2; 123B.88, subdivision 12; 123B.90, subdivision
2; 123B.92, subdivisions 1, 3; 124D.095, subdivisions 2, 3, 4, 7; 124D.10,
subdivisions 4, 23a, 24; 124D.111, subdivision 1; 124D.128, subdivisions
1, 2, 3; 124D.13, subdivisions 1, 2, 11, by adding a subdivision; 124D.135,
subdivisions 1, 3, 5, 6; 124D.15, subdivision 3; 124D.34, subdivision 7;
124D.454, subdivisions 2, 3; 124D.531, subdivisions 1, 4; 124D.65, subdivision
11; 124D.66, subdivision 3; 124D.84, subdivision 1; 125A.11, subdivision 1;
125A.13; 125A.14; 125A.39; 125A.42; 125A.44; 125A.45; 125A.50; 125A.56;
125A.63, by adding a subdivision; 125A.75, subdivisions 1, 4, by adding a
subdivision; 125A.76, subdivisions 1, 2, 4, 5, by adding a subdivision; 125A.78;
125A.79, subdivisions 1, 5, 6, 8; 125B.15; 126C.01, subdivision 9; 126C.05,
subdivision 1; 126C.10, subdivisions 2, 2b, 24, 34; 126C.126; 126C.13,
subdivision 4; 126C.15, subdivision 2; 126C.21, subdivisions 3, 5; 126C.41,
by adding a subdivision; 126C.44; 126C.48, subdivisions 2, 7; 127A.095,
subdivision 2; 127A.441; 127A.47, subdivision 7; 127A.49, subdivisions 2, 3;
128D.11, subdivision 3; 134.31, by adding a subdivision; 134.34, subdivision
4; 134.355, subdivision 9; 169.01, by adding a subdivision; 169.443, by adding
a subdivision; 169.447, subdivision 2; 169.4501, subdivisions 1, 2; 169.4502,
subdivision 5; 169.4503, subdivisions 13, 20; 171.02, subdivisions 2, 2a;
171.321, subdivision 4; 205A.05, subdivision 1; 272.02, subdivision 64; 272.029,
by adding a subdivision; 275.065, subdivisions 1, 1a; 517.08, subdivision 1c;
Laws 2005, First Special Session chapter 5, article 1, sections 50, subdivision
2; 54, subdivisions 2, as amended, 4, 5, as amended, 6, as amended, 7, as
amended, 8, as amended; article 2, sections 81, as amended; 84, subdivisions
2, as amended, 3, as amended, 4, as amended, 6, as amended, 10, as amended;
article 3, section 18, subdivisions 2, as amended, 3, as amended, 4, as amended,
6, as amended; article 4, section 25, subdivisions 2, as amended, 3, as amended;
article 5, section 17, subdivision 3, as amended; article 7, section 20, subdivisions
2, as amended, 3, as amended, 4, as amended; article 8, section 8, subdivisions
2, as amended, 5, as amended; article 9, section 4, subdivision 2; Laws 2006,
chapter 263, article 3, section 15; Laws 2006, chapter 282, article 2, section
28, subdivision 4; article 3, section 4, subdivision 2; proposing coding for new
law in Minnesota Statutes, chapters 119A; 124D; 127A; repealing Minnesota
Statutes 2006, sections 120B.233; 123A.22, subdivision 11; 123B.749; 123B.81,
subdivision 8; 124D.06; 124D.081, subdivisions 1, 2, 3, 4, 5, 6, 9; 124D.175;
124D.454, subdivisions 4, 5, 6, 7; 124D.531, subdivision 5; 124D.62; 125A.10;
125A.75, subdivision 6; 125A.76, subdivision 3; 169.4502, subdivision 15;
169.4503, subdivisions 17, 18, 26.

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 124D.128, subdivision 1, is amended to read:

Subdivision 1.

Program established.

A learning year program provides instruction
throughout the year new text begin on an extended year calendar, extended school day calendar, or
both new text end . A pupil may participate in the program and accelerate attainment of grade level
requirements or graduation requirements. A learning year program may begin after the
close of the regular school year in June. The program may be for students in one or more
grade levels from kindergarten through grade 12.

Sec. 3.

Minnesota Statutes 2006, section 124D.128, subdivision 2, is amended to read:

Subd. 2.

Commissioner designation.

(a) An area learning center designated by the
state must be a site. new text begin An area learning center must provide services to students who meet
the criteria in section 124D.68 and who are enrolled in:
new text end

new text begin (1) a district that is served by the center; or
new text end

new text begin (2) a charter school located within the geographic boundaries of a district that is
served by the center.
new text end

new text begin (b) A school district or charter school may be approved biennially by the state to
provide additional instructional programming that results in grade level acceleration. The
program must be designed so that students make grade progress during the school year
and graduate prior to the students' peers.
new text end

new text begin (c) new text end To be designated, a district new text begin , charter school, new text end or center must demonstrate to the
commissioner that it will:

(1) provide a program of instruction that permits pupils to receive instruction
throughout the entire year; and

(2) new text begin develop and new text end maintain a new text begin separate new text end record system that, for purposes of section
126C.05, permits identification of membership attributable to pupils participating in the
program. The record system and identification must ensure that the program will not
have the effect of increasing the total deleted text begin number of pupil units deleted text end new text begin average daily membership
new text end attributable to an individual pupil as a result of a learning year program. The record
system must include the date the pupil originally enrolled in a learning year program, the
pupil's grade level, the date of each grade promotion, the average daily membership
generated in each grade level, the number of credits or standards earned, and the number
needed to graduate.

deleted text begin (b) deleted text end new text begin (d) new text end A student who has not completed a school district's graduation requirements
may continue to enroll in courses the student must complete in order to graduate until
the student satisfies the district's graduation requirements or the student is 21 years old,
whichever comes first.

Sec. 4.

Minnesota Statutes 2006, section 124D.128, subdivision 3, is amended to read:

Subd. 3.

Student planning.

A district new text begin , charter school, or area learning center new text end must
inform all pupils and their parents about the learning year program and that participation
in the program is optional. A continual learning plan must be developed at least annually
for each pupil with the participation of the pupil, parent or guardian, teachers, and other
staff; each participant must sign and date the plan. The plan must specify the learning
experiences that must occur during the entire fiscal year and deleted text begin , deleted text end new text begin are necessary for grade
progression or, new text end for secondary students, deleted text begin for deleted text end graduation. The plan must include:

(1) the pupil's learning objectives and experiences, including courses or credits the
pupil plans to complete each year and, for a secondary pupil, the graduation requirements
the student must complete;

(2) the assessment measurements used to evaluate a pupil's objectives;

(3) requirements for grade level or other appropriate progression; and

(4) for pupils generating more than one average daily membership in a given grade,
an indication of which objectives were unmet.

The plan may be modified to conform to district schedule changes. The district may
not modify the plan if the modification would result in delaying the student's time of
graduation.

Sec. 5.

Minnesota Statutes 2006, section 126C.05, subdivision 1, is amended to read:

Subdivision 1.

Pupil unit.

Pupil units for each Minnesota resident pupil under the
age of 21 or who meets the requirements of section 120A.20, subdivision 1, paragraph
(c), in average daily membership enrolled in the district of residence, in another district
under sections 123A.05 to 123A.08, 124D.03, 124D.06, 124D.07, 124D.08, or 124D.68;
in a charter school under section 124D.10; or for whom the resident district pays tuition
under section 123A.18, 123A.22, 123A.30, 123A.32, 123A.44, 123A.488, 123B.88,
subdivision 4, 124D.04, 124D.05, 125A.03 to 125A.24, 125A.51, or 125A.65, shall be
counted according to this subdivision.

(a) A prekindergarten pupil with a disability who is enrolled in a program approved
by the commissioner and has an individual education plan is counted as the ratio of the
number of hours of assessment and education service to 825 times 1.25 with a minimum
average daily membership of 0.28, but not more than 1.25 pupil units.

(b) A prekindergarten pupil who is assessed but determined not to be disabled is
counted as the ratio of the number of hours of assessment service to 825 times 1.25.

(c) A kindergarten pupil with a disability who is enrolled in a program approved
by the commissioner is counted as the ratio of the number of hours of assessment and
education services required in the fiscal year by the pupil's individual education program
plan to 875, but not more than one.

(d) A kindergarten pupil who is not included in paragraph (c) is counted as deleted text begin .557 of a
pupil unit for fiscal year 2000 and thereafter deleted text end new text begin 0.612 pupil units new text end .

(e) A pupil who is in any of grades 1 to 3 is counted as 1.115 pupil units for fiscal
year 2000 and thereafter.

(f) A pupil who is any of grades 4 to 6 is counted as 1.06 pupil units for fiscal
year 1995 and thereafter.

(g) A pupil who is in any of grades 7 to 12 is counted as 1.3 pupil units.

(h) A pupil who is in the postsecondary enrollment options program is counted
as 1.3 pupil units.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for revenue for fiscal year 2008.
new text end

Sec. 6.

Minnesota Statutes 2006, section 126C.10, subdivision 2, is amended to read:

Subd. 2.

Basic revenue.

The basic revenue for each district equals the formula
allowance times the adjusted marginal cost pupil units for the school year. deleted text begin The formula
allowance for fiscal year 2005 is $4,601. The formula allowance for fiscal year 2006 is
$4,783. deleted text end The formula allowance for fiscal year 2007 new text begin is $4,974. The formula allowance for
fiscal year 2008 is $5,074 and the formula allowance for fiscal year 2009 new text end and subsequent
years is deleted text begin $4,974 deleted text end new text begin $5,124 new text end .

Sec. 7.

Minnesota Statutes 2006, section 126C.10, subdivision 2b, is amended to read:

Subd. 2b.

Gifted and talented revenue.

Gifted and talented revenue for each
district equals deleted text begin $4 times deleted text end the district's adjusted marginal cost pupil units for deleted text begin fiscal year 2006
and $9 for fiscal year 2007 and later deleted text end new text begin that school year times $12 for fiscal year 2008 and
later new text end . A school district must reserve gifted and talented revenue and, consistent with
section 120B.15, must spend the revenue only to:

(1) identify gifted and talented students;

(2) provide education programs for gifted and talented students; or

(3) provide staff development to prepare teachers to best meet the unique needs
of gifted and talented students.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for revenue for fiscal year 2008.
new text end

Sec. 8.

Minnesota Statutes 2006, section 126C.10, subdivision 24, is amended to read:

Subd. 24.

Equity revenue.

(a) A school district qualifies for equity revenue if:

(1) the school district's adjusted marginal cost pupil unit amount of basic revenue,
supplemental revenue, transition revenue, and referendum revenue is less than the value of
the school district at or immediately above the 95th percentile of school districts in its
equity region for those revenue categories; and

(2) the school district's administrative offices are not located in a city of the first
class on July 1, 1999.

(b) Equity revenue for a qualifying district that receives referendum revenue under
section 126C.17, subdivision 4, equals the product of (1) the district's adjusted marginal
cost pupil units for that year; times (2) the sum of (i) $13, plus (ii) $75, times the school
district's equity index computed under subdivision 27.

(c) Equity revenue for a qualifying district that does not receive referendum revenue
under section 126C.17, subdivision 4, equals the product of the district's adjusted marginal
cost pupil units for that year times $13.

(d) A school district's equity revenue is increased by the greater of zero or an amount
equal to the district's resident marginal cost pupil units times the difference between ten
percent of the statewide average amount of referendum revenue per resident marginal cost
pupil unit for that year and the district's referendum revenue per resident marginal cost
pupil unit. A school district's revenue under this paragraph must not exceed $100,000 for
that year.

(e) A school district's equity revenue for a school district located in the metro equity
region equals the amount computed in paragraphs (b), (c), and (d) multiplied by 1.25.

(f) For fiscal year 2007 and later, notwithstanding paragraph (a), clause (2), a school
district that has per pupil referendum revenue below the 95th percentile qualifies for
additional equity revenue equal to $46 times its adjusted marginal cost pupil deleted text begin unit deleted text end new text begin units new text end .

(g) A district that does not qualify for revenue under paragraph (f) qualifies for
equity revenue equal to deleted text begin one-half of the per pupil allowance in paragraph (f) deleted text end new text begin $46 new text end times its
adjusted marginal cost pupil units.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for revenue for fiscal year 2008.
new text end

Sec. 9.

Minnesota Statutes 2006, section 126C.10, subdivision 34, is amended to read:

Subd. 34.

Basic alternative teacher compensation aid.

(a) deleted text begin For fiscal year 2006,
the basic alternative teacher compensation aid for a school district or an intermediate
school district with a plan approved under section 122A.414, subdivision 2b, equals the
alternative teacher compensation revenue under section 122A.415, subdivision 1. The
basic alternative teacher compensation aid for a charter school with an approved plan
under section 122A.414, subdivision 2b, equals $260 times the number of pupils enrolled
in the school on October 1 of the previous school year, or on October 1 of the current
fiscal year for a charter school in the first year of operation.
deleted text end

deleted text begin (b) deleted text end For fiscal deleted text begin year deleted text end new text begin years new text end 2007 and later, the basic alternative teacher compensation
aid for a school district with a plan approved under section 122A.414, subdivision
2b, equals deleted text begin 73.1 deleted text end new text begin 65 new text end percent of the alternative teacher compensation revenue under
section 122A.415, subdivision 1. The basic alternative teacher compensation aid for
an intermediate school district or charter school with a plan approved under section
122A.414, subdivisions 2a and 2b, if the recipient is a charter school, equals $260 times
the number of pupils enrolled in the school on October 1 of the previous fiscal year, or on
October 1 of the current fiscal year for a charter school in the first year of operation, times
the ratio of the sum of the alternative teacher compensation aid and alternative teacher
compensation levy for all participating school districts to the maximum alternative teacher
compensation revenue for those districts under section 122A.415, subdivision 1.

deleted text begin (c) deleted text end new text begin (b) new text end Notwithstanding paragraphs (a) and (b) and section 122A.415, subdivision
1, the state total basic alternative teacher compensation aid entitlement must not exceed
deleted text begin $19,329,000 for fiscal year 2006 and deleted text end $75,636,000 for fiscal year 2007 and later. The
commissioner must limit the amount of alternative teacher compensation aid approved
under section 122A.415 so as not to exceed these limits.

Sec. 10.

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

126C.126 REALLOCATING GENERAL EDUCATION REVENUE FOR
ALL-DAY KINDERGARTEN new text begin AND PREKINDERGARTEN new text end .

new text begin (a) new text end In order to provide additional revenue for an optional all-day kindergarten
program, a district may reallocate general education revenue attributable to 12th grade
students who have graduated early under section 120B.07.

new text begin (b) A school district may spend general education revenue on extended time
kindergarten and prekindergarten programs.
new text end

Sec. 11.

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 126C.10, subdivision 13b;
deleted text end

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

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

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

deleted text begin (6) referendum aid according to section 126C.17; and
deleted text end

deleted text begin (7) online learning aid according to section 124D.096.
deleted text end

deleted text begin (b) deleted text end For fiscal deleted text begin year deleted text end new text begin years new text end 2007 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. 12.

Minnesota Statutes 2006, section 126C.21, subdivision 3, is amended to read:

Subd. 3.

County apportionment deduction.

Each year the amount of money
apportioned to a district for that year pursuant to deleted text begin section deleted text end new text begin sections new text end 127A.34, subdivision 2,
new text begin and 272.029, subdivision 6, new text end must be deducted from the general education aid earned by
that district for the same year or from aid earned from other state sources.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for revenue for fiscal year 2009.
new text end

Sec. 13.

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 to 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. 14.

Minnesota Statutes 2006, section 126C.44, is amended to read:

126C.44 SAFE SCHOOLS LEVY.

new text begin (a) new text end Each district may make a levy on all taxable property located within the district
for the purposes specified in this section. The maximum amount which may be levied for
all costs under this section shall be equal to deleted text begin $27 deleted text end new text begin $30 new text end multiplied by the district's adjusted
marginal cost pupil units for the school year. The proceeds of the levy must be reserved
and used for directly funding the following purposes or for reimbursing the cities and
counties who contract with the district for the following purposes: (1) to pay the costs
incurred for the salaries, benefits, and transportation costs of peace officers and sheriffs for
liaison in services in the district's schools; (2) to pay the costs for a drug abuse prevention
program as defined in section 609.101, subdivision 3, paragraph (e), in the elementary
schools; (3) to pay the costs for a gang resistance education training curriculum in the
district's schools; (4) to pay the costs for security in the district's schools and on school
property; deleted text begin or deleted text end (5) to pay the costs for other crime prevention, drug abuse, student and staff
safety, new text begin voluntary opt-in suicide prevention tools, new text end and violence prevention measures taken
by the school district new text begin ; or (6) to pay costs for licensed school counselors, licensed school
nurses, licensed school social workers, licensed school psychologists, and licensed alcohol
and chemical dependency counselors to help provide early responses to problems new text end . For
expenditures under clause (1), the district must initially attempt to contract for services to
be provided by peace officers or sheriffs with the police department of each city or the
sheriff's department of the county within the district containing the school receiving the
services. If a local police department or a county sheriff's department does not wish
to provide the necessary services, the district may contract for these services with any
other police or sheriff's department located entirely or partially within the school district's
boundaries.

new text begin (b) A school district that is a member of an intermediate school district may
include in its authority under this section the costs associated with safe schools activities
authorized under paragraph (a) for intermediate school district programs. This authority
must not exceed $10 times the adjusted marginal cost pupil units of the member districts.
This authority is in addition to any other authority authorized under this section. Revenue
raised under this paragraph must be transferred to the intermediate school district.
new text end

new text begin (c) If a school district spends safe schools levy proceeds under paragraph (a), clause
(6), the district must annually certify that its total spending on services provided by the
employees listed in paragraph (a), clause (6), is not less than the sum of its expenditures
for these purposes, excluding amounts spent under this section, in the previous year plus
the amount spent under this section.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxes payable in 2008.
new text end

Sec. 15.

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. 16.

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 new text begin greater of (1) the new text end referendum
equalization aid attributable to the pupil in the nonresident district new text begin ; or (2) the product of
the district's open enrollment concentration index, the maximum amount of referendum
revenue in the first tier, and the district's net open enrollment pupil units for that year. A
district's open enrollment concentration index equals the greater of: (i) zero, or (ii) the
lesser of 1.0, or the difference between the district's ratio of open enrollment pupil units
served to its resident pupil units for that year and 0.2. This clause does not apply to a
school district where more than 50 percent of the open enrollment students are enrolled
solely in online learning courses new text end .

(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 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 aid attributable to a
pupil must be calculated using the serving district's average general education revenue
and referendum 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 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 aid attributable to a pupil must be calculated
using the serving district's average general education revenue and referendum 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 for revenue for fiscal year 2008.
new text end

Sec. 17.

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; deleted text begin and
deleted text end

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

new text begin (E) section 126C.13, if the district received general education aid according to
section 126C.13, subdivision 4, paragraph (b), clause (1), of that section in the second
preceding year;
new text end

new text begin (F) section 126C.10, subdivision 13a, if the district received operating capital aid
according to section 126C.10, subdivision 13b, in the second preceding year;
new text end

new text begin (G) section 126C.10, subdivision 29, if the district received equity aid according to
section 126C.10, subdivision 30, in the second preceding year;
new text end

new text begin (H) section 126C.10, subdivision 32, if the district received transition aid according
to section 126C.10, subdivision 33, in the second preceding year;
new text end

new text begin (I) section 123B.53, subdivision 5, if the district received debt service equalization
aid according to section 123B.53, subdivision 6, in the second preceding year;
new text end

new text begin (J) section 124D.22, subdivision 3, if the district received school-age care aid
according to section 124D.22, subdivision 4, in the second preceding year;
new text end

new text begin (K) section 123B.591, subdivision 3, if the district received deferred maintenance
aid according to section 123B.591, subdivision 4, in the second preceding year; and
new text end

new text begin (L) section 126C.10, subdivision 35, if the district received alternative teacher
compensation equalization aid according to section 126C.10, subdivision 36, paragraph
(a), in the second preceding year; new text end to

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

Sec. 18.

Minnesota Statutes 2006, section 127A.49, subdivision 3, is amended to read:

Subd. 3.

Excess tax increment.

(a) If a return of excess tax increment is made to a
district pursuant to sections 469.176, subdivision 2, and 469.177, subdivision 9, or upon
decertification of a tax increment district, the school district's aid and levy limitations
must be adjusted for the fiscal year in which the excess tax increment is paid under the
provisions of this subdivision.

(b) An amount must be subtracted from the district's aid for the current fiscal year
equal to the product of:

(1) the amount of the payment of excess tax increment to the district, times

(2) the ratio of:

(i) the sum of the amounts of the district's certified levy for the fiscal year in which
the excess tax increment is paid 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; deleted text begin and
deleted text end

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

new text begin (E) section 126C.13, if the district received general education aid according to
section 126C.13, subdivision 4, paragraph (b), clause (1), of that section in the second
preceding year;
new text end

new text begin (F) section 126C.10, subdivision 13a, if the district received operating capital aid
according to section 126C.10, subdivision 13b, in the second preceding year;
new text end

new text begin (G) section 126C.10, subdivision 29, if the district received equity aid according to
section 126C.10, subdivision 30, in the second preceding year;
new text end

new text begin (H) section 126C.10, subdivision 32, if the district received transition aid according
to section 126C.10, subdivision 33, in the second preceding year;
new text end

new text begin (I) section 123B.53, subdivision 5, if the district received debt service equalization
aid according to section 123B.53, subdivision 6, in the second preceding year;
new text end

new text begin (J) section 124D.22, subdivision 3, if the district received school-age care aid
according to section 124D.22, subdivision 4, in the second preceding year;
new text end

new text begin (K) section 123B.591, subdivision 3, if the district received deferred maintenance
aid according to section 123B.591, subdivision 4, in the second preceding year; and
new text end

new text begin (L) section 126C.10, subdivision 35, if the district received alternative teacher
compensation equalization aid according to section 126C.10, subdivision 36, paragraph
(a), in the second preceding year; new text end to

(ii) the total amount of the district's certified levy for the fiscal year, plus or minus
auditor's adjustments.

(c) An amount must be subtracted from the school district's levy limitation for the
next levy certified equal to the difference between:

(1) the amount of the distribution of excess increment; and

(2) the amount subtracted from aid pursuant to clause (a).

If the aid and levy reductions required by this subdivision cannot be made to the aid
for the fiscal year specified or to the levy specified, the reductions must be made from
aid for subsequent fiscal years, and from subsequent levies. The school district must use
the payment of excess tax increment to replace the aid and levy revenue reduced under
this subdivision.

(d) This subdivision applies only to the total amount of excess increments received
by a district for a calendar year that exceeds $25,000.

Sec. 19.

Minnesota Statutes 2006, section 205A.05, subdivision 1, is amended to read:

Subdivision 1.

Questions.

Special elections must be held for a school district on a
question on which the voters are authorized by law to pass judgment. The school board
may on its own motion call a special election to vote on any matter requiring approval of
the voters of a district. Upon petition of 50 or more voters of the school district or five
percent of the number of voters voting at the preceding deleted text begin regular deleted text end school district new text begin general new text end
election, new text begin whichever is greater, new text end the school board shall by resolution call a special election
to vote on any matter requiring approval of the voters of a district. A question is carried
only with the majority in its favor required by law. The election officials for a special
election are the same as for the most recent school district general election unless changed
according to law. Otherwise, special elections must be conducted and the returns made
in the manner provided for the school district general election. A special election may
not be held during the 30 days before and the 30 days after the state primary, during the
30 days before and the 40 days after the state general election. In addition, a special
election may not be held during the 20 days before and the 20 days after any regularly
scheduled election of a municipality wholly or partially within the school district.
Notwithstanding any other law to the contrary, the time period in which a special election
must be conducted under any other law may be extended by the school board to conform
with the requirements of this subdivision.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment
and applies to petitions for special election submitted 30 days after that date and later.
new text end

Sec. 20.

Minnesota Statutes 2006, section 272.029, is amended by adding a subdivision
to read:

new text begin Subd. 6a. new text end

new text begin Report to commissioner of education. new text end

new text begin The county auditor, on the first
Wednesday after such settlement, shall report to the commissioner the amount distributed
to each school district under subdivision 6.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2008, for settlements made
during fiscal year 2009.
new text end

Sec. 21.

Laws 2005, First Special Session chapter 5, article 1, section 50, subdivision
2, is amended to read:

Subd. 2.

Application process.

Independent School Districts Nos. 11,
Anoka-Hennepin; 279, Osseo; 281, Robbinsdale; new text begin 286, Brooklyn Center; new text end 535, Rochester;
and 833, South Washington may submit an application to the commissioner of education
deleted text begin by August 15, 2005, deleted text end for a plan to allocate compensatory revenue to school sites based
on student performance. The application must include a written resolution approved by
the school board that: (1) identifies the test results that will be used to assess student
performance; (2) describes the method for distribution of compensatory revenue to the
school sites; and (3) summarizes the evaluation procedure the district will use to determine
if the redistribution of compensatory revenue improves overall student performance. The
application must be submitted in the form and manner specified by the commissioner. The
commissioner must notify the selected school districts deleted text begin by September 1, 2005 deleted text end new text begin within 90
days of receipt of their application 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. 22.

Laws 2006, chapter 282, article 3, section 4, subdivision 2, is amended to read:

Subd. 2.

Onetime energy assistance aid.

For onetime energy assistance aid under
section 3:

$

3,495,000

.....

deleted text begin 2007 deleted text end new text begin 2006 new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment
and applies retroactively to fiscal year 2006.
new text end

Sec. 23. new text begin SCHOOL FINANCE REFORM; TASK FORCE ESTABLISHED.
new text end

new text begin Subdivision 1. new text end

new text begin Task force established. new text end

new text begin A School Finance Reform Task Force
is established.
new text end

new text begin Subd. 2. new text end

new text begin Task force goals. new text end

new text begin The goals of the School Finance Reform Task Force
include:
new text end

new text begin (1) creating a standard and index to ensure that the formula remains adequate over
time;
new text end

new text begin (2) simplifying the remaining school formulas;
new text end

new text begin (3) analyzing categorical funding formulas, including but not limited to pupil
transportation, compensatory revenue, and limited English proficiency revenue;
new text end

new text begin (4) establishing a schedule for implementation of the other new formulas; and
new text end

new text begin (5) examining the role of the regional delivery structure including the functions
performed by intermediate school districts, service cooperatives, education districts, and
other cooperative organizations.
new text end

new text begin Subd. 3. new text end

new text begin Task force members. new text end

new text begin The task force consists of nine members.
Membership includes the commissioner of education, four members appointed according
to the rules of the senate by the senate Committee on Rules and Administration
Subcommittee on Committees, and four members appointed by the speaker of the house.
new text end

new text begin Subd. 4. new text end

new text begin Task force recommendations. new text end

new text begin The task force must submit a report to the
education committees of the legislature by January 15, 2008, describing the formula
recommendations according to the goals it has established.
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. 24. new text begin APPROPRIATIONS.
new text end

new text begin Subdivision 1. new text end

new text begin Department of Education. new text end

new text begin The sums indicated in this section are
appropriated from the general fund to the Department of Education for the fiscal years
designated.
new text end

new text begin Subd. 2. new text end

new text begin General education aid. new text end

new text begin For general education aid under Minnesota
Statutes, section 126C.13, subdivision 4:
new text end

	new text begin $ new text end	new text begin 5,618,342,000 new text end	new text begin ..... new text end	new text begin 2008 new text end
	new text begin $ new text end	new text begin 5,618,342,000 new text end	new text begin ..... new text end	new text begin 2009 new text end

new text begin The 2008 appropriation includes $531,733,000 for 2007 and $5,073,250,000 for
2008.
new text end

new text begin The 2009 appropriation includes $546,314,000 for 2008 and $5,072,028,000 for
2009.
new text end

new text begin Subd. 3. new text end

new text begin Referendum tax base replacement aid. new text end

new text begin For referendum tax base
replacement aid under Minnesota Statutes, section 126C.17, subdivision 7a:
new text end

new text begin $ new text end

new text begin 870,000 new text end

new text begin ..... new text end

new text begin 2008 new text end

new text begin The 2008 appropriation includes $870,000 for 2007 and $0 for 2008.
new text end

new text begin Subd. 4. new text end

new text begin Enrollment options transportation. new text end

new text begin For transportation of pupils attending
postsecondary institutions under Minnesota Statutes, section 124D.09, or for transportation
of pupils attending nonresident districts under Minnesota Statutes, section 124D.03:
new text end

	new text begin $ new text end	new text begin 95,000 new text end	new text begin ..... new text end	new text begin 2008 new text end
	new text begin $ new text end	new text begin 97,000 new text end	new text begin ..... new text end	new text begin 2009 new text end

new text begin Subd. 5. new text end

new text begin Abatement revenue. new text end

new text begin For abatement aid under Minnesota Statutes, section
127A.49:
new text end

	new text begin $ new text end	new text begin 1,343,000 new text end	new text begin ..... new text end	new text begin 2008 new text end
	new text begin $ new text end	new text begin 1,347,000 new text end	new text begin ..... new text end	new text begin 2009 new text end

new text begin The 2008 appropriation includes $76,000 for 2007 and $1,267,000 for 2008.
new text end

new text begin The 2009 appropriation includes $140,000 for 2008 and $1,207,000 for 2009.
new text end

new text begin Subd. 6. new text end

new text begin Consolidation transition. new text end

new text begin For districts consolidating under Minnesota
Statutes, section 123A.485:
new text end

	new text begin $ new text end	new text begin 565,000 new text end	new text begin ..... new text end	new text begin 2008 new text end
	new text begin $ new text end	new text begin 212,000 new text end	new text begin ..... new text end	new text begin 2009 new text end

new text begin The 2008 appropriation includes $43,000 for 2007 and $522,000 for 2008.
new text end

new text begin The 2009 appropriation includes $57,000 for 2008 and $155,000 for 2009.
new text end

new text begin Subd. 7. new text end

new text begin Nonpublic pupil education aid. new text end

new text begin For nonpublic pupil education aid under
Minnesota Statutes, sections 123B.40 to 123B.43, and 123B.87:
new text end

	new text begin $ new text end	new text begin 16,290,000 new text end	new text begin ..... new text end	new text begin 2008 new text end
	new text begin $ new text end	new text begin 16,620,000 new text end	new text begin ..... new text end	new text begin 2009 new text end

new text begin The 2008 appropriation includes $1,606,000 for 2007 and $14,684,000 for 2008.
new text end

new text begin The 2009 appropriation includes $1,631,000 for 2008 and $14,989,000 for 2009.
new text end

new text begin Subd. 8. new text end

new text begin Nonpublic pupil transportation. new text end

new text begin For nonpublic pupil transportation aid
under Minnesota Statutes, section 123B.92, subdivision 9:
new text end

	new text begin $ new text end	new text begin 21,551,000 new text end	new text begin ..... new text end	new text begin 2008 new text end
	new text begin $ new text end	new text begin 21,392,000 new text end	new text begin ..... new text end	new text begin 2009 new text end

new text begin The 2008 appropriation includes $2,124,000 for 2007 and $19,427,000 for 2008.
new text end

new text begin The 2009 appropriation includes $2,158,000 for 2008 and $19,234,000 for 2009.
new text end

new text begin Subd. 9. new text end

new text begin One-room schoolhouse. new text end

new text begin For a grant to Independent School District No.
690, Warroad, to operate the Angle Inlet School:
new text end

	new text begin $ new text end	new text begin 65,000 new text end	new text begin ..... new text end	new text begin 2008 new text end
	new text begin $ new text end	new text begin 65,000 new text end	new text begin ..... new text end	new text begin 2009 new text end

new text begin Subd. 10. new text end

new text begin Compensatory revenue pilot project. new text end

new text begin For grants for participation in the
compensatory revenue pilot program under Laws 2005, First Special Session chapter 5,
article 1, section 50:
new text end

	new text begin $ new text end	new text begin 2,175,000 new text end	new text begin ..... new text end	new text begin 2008 new text end
	new text begin $ new text end	new text begin 2,175,000 new text end	new text begin ..... new text end	new text begin 2009 new text end

new text begin Of this amount, $1,500,000 in each year is for a grant to Independent School District
No. 11, Anoka-Hennepin; $210,000 in each year is for a grant to Independent School
District No. 279, Osseo; $160,000 in each year is for a grant to Independent School
District No. 281, Robbinsdale; $75,000 in each year is for a grant to Independent School
District No. 286, Brooklyn Center; $165,000 in each year is for a grant to Independent
School District No. 535, Rochester; and $65,000 in each year is for a grant to Independent
School District No. 833, South Washington.
new text end

new text begin If a grant to a specific school district is not awarded, the commissioner may increase
the aid amounts to any of the remaining participating school districts.
new text end

new text begin This appropriation is part of the base budget for subsequent fiscal years.
new text end

new text begin Subd. 11. new text end

new text begin Declining pupil unit aid; Browns Valley. new text end

new text begin For declining pupil unit aid
to Independent School District No. 801, Browns Valley:
new text end

	new text begin $ new text end	new text begin 100,000 new text end	new text begin ..... new text end	new text begin 2008 new text end
	new text begin $ new text end	new text begin 100,000 new text end	new text begin ..... new text end	new text begin 2009 new text end

new text begin This is a onetime appropriation.
new text end

new text begin Subd. 12. new text end

new text begin Education finance study. new text end

new text begin For a contract to hire an independent contractor
to assist the education finance task force:
new text end

new text begin $ new text end

new text begin 75,000 new text end

new text begin ..... new text end

new text begin 2008 new text end

new text begin This is a onetime appropriation.
new text end

new text begin Subd. 13. new text end

new text begin Declining pupil aid, Red Lake. new text end

new text begin For a grant to Independent School
District No. 38, Red Lake, for declining pupil aid:
new text end

	new text begin $ new text end	new text begin 455,000 new text end	new text begin ..... new text end	new text begin 2008 new text end
	new text begin $ new text end	new text begin 50,000 new text end	new text begin ..... new text end	new text begin 2009 new text end

new text begin Subd. 14. new text end

new text begin Declining pupil aid McGregor. new text end

new text begin For declining pupil aid for Independent
School District No. 4, McGregor:
new text end

new text begin $ new text end

new text begin 100,000 new text end

new text begin ..... new text end

new text begin 2008 new text end

new text begin Any balance in the first year does not cancel but is available in the second year.
new text end

Sec. 25. 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. 26. new text begin REPEALER.
new text end

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

new text begin (b) new text end new text begin Minnesota Statutes 2006, section 124D.081, subdivisions 1, 2, 3, 4, 5, 6, and
9, new text end new text begin are repealed effective for revenue for fiscal year 2010.
new text end

ARTICLE 2

EDUCATION EXCELLENCE

Section 1.

Minnesota Statutes 2006, section 119A.50, is amended by adding a
subdivision to read:

new text begin Subd. 3. new text end

new text begin Early childhood literacy programs. new text end

new text begin (a) A research-based early childhood
literacy program premised on actively involved parents, ongoing professional staff
development, and high quality early literacy program standards is established to increase
the literacy skills of children participating in Head Start to prepare them to be successful
readers and to increase families' participation in providing early literacy experiences to
their children. Program providers must:
new text end

new text begin (1) work to prepare children to be successful learners;
new text end

new text begin (2) work to close the achievement gap for at-risk children;
new text end

new text begin (3) use an integrated approach to early literacy that daily offers a literacy-rich
classroom learning environment composed of books, writing materials, writing centers,
labels, rhyming, and other related literacy materials and opportunities;
new text end

new text begin (4) support children's home language while helping the children master English and
use multiple literacy strategies to provide a cultural bridge between home and school;
new text end

new text begin (5) use literacy mentors, ongoing literacy groups, and other teachers and staff to
provide appropriate, extensive professional development opportunities in early literacy
and classroom strategies for preschool teachers and other preschool staff;
new text end

new text begin (6) use ongoing data-based assessments that enable preschool teachers to understand,
plan, and implement literacy strategies, activities, and curriculum that meet children's
literacy needs and continuously improve children's literacy; and
new text end

new text begin (7) foster participation by parents, community stakeholders, literacy advisors, and
evaluation specialists.
new text end

new text begin Program providers are encouraged to collaborate with qualified, community-based
early childhood providers in implementing this program and to seek nonstate funds to
supplement the program.
new text end

new text begin (b) Program providers under paragraph (a) interested in extending literacy programs
to children in kindergarten through grade 3 may elect to form a partnership with an
eligible organization under section 124D.38, subdivision 2, or 124D.42, subdivision 6,
clause (3), schools enrolling children in kindergarten through grade 3, and other interested
and qualified community-based entities to provide ongoing literacy programs that offer
seamless literacy instruction focused on closing the literacy achievement gap. To close the
literacy achievement gap by the end of third grade, partnership members must agree to use
best efforts and practices and to work collaboratively to implement a seamless literacy
model from age three to grade 3, consistent with paragraph (a). Literacy programs under
this paragraph must collect and use literacy data to:
new text end

new text begin (1) evaluate children's literacy skills; and
new text end

new text begin (2) formulate specific intervention strategies to provide reading instruction to
children premised on the outcomes of formative and summative assessments and
research-based indicators of literacy development.
new text end

new text begin The literacy programs under this paragraph also must train teachers and other
providers working with children to use the assessment outcomes under clause (2) to
develop and use effective, long-term literacy coaching models that are specific to the
program providers.
new text end

new text begin (c) The commissioner must collect and evaluate literacy data on children from age
three to grade 3 who participate in literacy programs under this section to determine the
efficacy of early literacy programs on children's success in developing the literacy skills
that they need for long-term academic success and the programs' success in closing the
literacy achievement gap. Annually by February 1, the commissioner must report to
the education policy and finance committees of the legislature on the ongoing impact
of these programs.
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. 2.

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

Subd. 7.

Education records.

(a) A district new text begin , a charter school, or a nonpublic school
that receives services or aid under sections 123B.40 to 123B.48 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 , the charter school, or the nonpublic school new text end in which the student is
enrolling. Districts new text begin , charter schools, and nonpublic schools that receive services or aid
under sections 123B.40 to 123B.48 new text end must make reasonable efforts to determine the district new text begin ,
the charter school, or the 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 , a charter school, or a nonpublic school that receives services
or aid under sections 123B.40 to 123B.48 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, the charter school, or the nonpublic school
that receives services or aid under sections 123B.40 to 123B.48 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. 3.

Minnesota Statutes 2006, section 120B.021, subdivision 1, is amended to read:

Subdivision 1.

Required academic standards.

The following subject areas are
required for statewide accountability:

(1) language arts;

(2) mathematics;

(3) science;

(4) social studies, including history, geography, economics, and government and
citizenship;

(5) health and physical education, for which locally developed academic standards
apply; and

(6) the arts, for which statewide or locally developed academic standards apply, as
determined by the school district. Public elementary and middle schools must offer at least
three and require at least two of the following four arts areas: dance; music; theater; and
visual arts. Public high schools must offer at least three and require at least one of the
following five arts areas: media arts; dance; music; theater; and visual arts.

The commissioner must submit proposed standards in science and social studies to
the legislature by February 1, 2004.

For purposes of applicable federal law, the academic standards for language arts,
mathematics, and science apply to all public school students, except the very few students
with extreme cognitive or physical impairments for whom an individualized education
plan team has determined that the required academic standards are inappropriate.
An individualized education plan team that makes this determination must establish
alternative standards.

A school district, no later than the 2007-2008 school year, must adopt graduation
requirements that meet or exceed state graduation requirements established in law or
rule. A school district that incorporates these state graduation requirements before the
2007-2008 school year must provide students who enter the 9th grade in or before
the 2003-2004 school year the opportunity to earn a diploma based on existing locally
established graduation requirements in effect when the students entered the 9th grade.
District efforts to develop, implement, or improve instruction or curriculum as a result
of the provisions of this section must be consistent with sections 120B.10, 120B.11,
and 120B.20.

new text begin The commissioner must include the contributions of Minnesota American Indian
tribes and communities as they relate to the academic standards during the review and
revision of the required academic standards.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for the 2008-2009 school year and
later.
new text end

Sec. 4.

Minnesota Statutes 2006, section 120B.022, subdivision 1, is amended to read:

Subdivision 1.

Elective standards.

new text begin (a) new text end A district must establish its own standards in
the following subject areas:

(1) vocational and technical education; and

(2) world languages.

A school district must offer courses in all elective subject areas.

new text begin (b) World languages teachers and other school staff should develop and implement
world languages programs that acknowledge and reinforce the language proficiency and
cultural awareness that non-English language speakers already possess, and encourage
students' proficiency in multiple world languages. Programs under this paragraph must
encompass indigenous American Indian languages and cultures, among other world
languages and cultures. The department shall consult with postsecondary institutions in
developing related professional development opportunities.
new text end

Sec. 5.

Minnesota Statutes 2006, section 120B.024, is amended to read:

120B.024 GRADUATION REQUIREMENTS; COURSE CREDITS.

(a) Students beginning 9th grade in the 2004-2005 school year and later must
successfully complete the following high school level course credits for graduation:

(1) four credits of language arts;

(2) three credits of mathematics, encompassing at least algebra, geometry, statistics,
and probability sufficient to satisfy the academic standard;

(3) three credits of science, including at least one credit in biology;

(4) three and one-half credits of social studies, encompassing at least United
States history, geography, government and citizenship, world history, and economics or
three credits of social studies encompassing at least United States history, geography,
government and citizenship, and world history, and one-half credit of economics taught in
a school's social studies, agriculture education, or business department;

(5) one credit in the arts; and

(6) a minimum of seven elective course credits.

A course credit is equivalent to a student successfully completing an academic
year of study or a student mastering the applicable subject matter, as determined by the
local school district.

(b) An agriculture science course may fulfill a science credit requirement in addition
to the specified science credits in biology and chemistry or physics under paragraph (a),
clause (3).

new text begin (c) A career and technical education course may fulfill a science, mathematics, or
arts credit requirement in addition to the specified science, mathematics, or arts credits
under paragraph (a), clause (2), (3), or (5).
new text end

Sec. 6.

Minnesota Statutes 2006, section 120B.12, subdivision 2, is amended to read:

Subd. 2.

Identification.

For the 2002-2003 school year and later, each school
district shall identify before the end of first grade students who are at risk of not
learning to read before the end of second grade. The district must use a locally adopted
assessment method. new text begin The district must annually report the results of the assessment to the
commissioner by June 1.
new text end

Sec. 7.

Minnesota Statutes 2006, section 120B.132, is amended to read:

120B.132 RAISED ACADEMIC ACHIEVEMENT; ADVANCED
PLACEMENT new text begin AND INTERNATIONAL BACCALAUREATE new text end PROGRAMS.

Subdivision 1.

Establishment; eligibility.

A program is established to raise
kindergarten through grade 12 academic achievement through increased student
participation in preadvanced placement deleted text begin and deleted text end new text begin , new text end advanced placement new text begin , and international
baccalaureate new text end programs new text begin , consistent with section 120B.13 new text end . Schools and charter schools
eligible to participate under this section:

(1) new text begin must have a three-year plan approved by the local school board to establish a new
international baccalaureate program leading to international baccalaureate authorization,
expand an existing program that leads to international baccalaureate authorization, or
expand an existing authorized international baccalaureate program; or
new text end

new text begin (2) new text end must have a three-year plan approved by the local school board to create a new or
expand an existing program to implement the college board advanced placement courses
and exams or preadvanced placement deleted text begin courses deleted text end new text begin initiative new text end ; and

deleted text begin (2) deleted text end new text begin (3) new text end must propose to further raise students' academic achievement by:

(i) increasing the availability of and all students' access to advanced placement new text begin or
international baccalaureate courses or programs new text end ;

(ii) expanding the breadth of advanced placement new text begin or international baccalaureate
new text end courses or programs that are available to students;

(iii) increasing the number and the diversity of the students who participate in
advanced placement new text begin or international baccalaureate new text end courses or programs and succeed;

(iv) providing low-income and other disadvantaged students with increased access
to advanced placement new text begin or international baccalaureate new text end courses and programs; or

(v) increasing the number of high school students, including low-income and other
disadvantaged students, who receive college credit by successfully completing advanced
placement new text begin or international baccalaureate new text end courses or programs and achieving satisfactory
scores on related exams.

Subd. 2.

Application and review process; funding priority.

(a) Charter schools
and school districts in which eligible schools under subdivision 1 are located may
apply to the commissioner, in the form and manner the commissioner determines, for
competitive funding to further raise students' academic achievement. The application must
detail the specific efforts the applicant intends to undertake in further raising students'
academic achievement, consistent with subdivision 1, and a proposed budget detailing
the district or charter school's current and proposed expenditures for advanced placement
deleted text begin or deleted text end new text begin , new text end preadvanced placement new text begin , and international baccalaureate new text end courses and programs. The
proposed budget must demonstrate that the applicant's efforts will deleted text begin supplement but not
supplant any expenditures for advanced placement and preadvanced placement courses and
programs the applicant currently makes available to students deleted text end new text begin support implementation of
advanced placement, preadvanced placement, and international baccalaureate courses and
programs new text end . Expenditures for administration must not exceed five percent of the proposed
budget. The commissioner may require an applicant to provide additional information.

(b) When reviewing applications, the commissioner must determine whether
the applicant satisfied all the requirements in this subdivision and subdivision 1.
The commissioner may give funding priority to an otherwise qualified applicant that
demonstrates:

(1) a focus on developing or expanding new text begin preadvanced placement, new text end advanced
placement new text begin , or international baccalaureate new text end courses deleted text begin and deleted text end new text begin or new text end programs or increasing students'
participation in, access to, or success with the courses or programs, including the
participation, access, or success of low-income and other disadvantaged students;

(2) a compelling need for access to new text begin preadvanced placement, new text end advanced placement new text begin , or
international baccalaureate courses or new text end programs;

(3) an effective ability to actively involve local business and community
organizations in student activities that are integral to new text begin preadvanced placement, new text end advanced
placement new text begin , or international baccalaureate new text end courses deleted text begin and deleted text end new text begin or new text end programs;

(4) access to additional public or nonpublic funds or in-kind contributions that are
available for new text begin preadvanced placement, new text end advanced placement new text begin , or international baccalaureate
courses or new text end programs; or

(5) an intent to implement activities that target low-income and other disadvantaged
students.

Subd. 3.

Funding; permissible funding uses.

(a) The commissioner shall award
grants to applicant school districts and charter schools that meet the requirements of
subdivisions 1 and 2. The commissioner must award grants on an equitable geographical
basis to the extent feasible and consistent with this section. Grant awards must not exceed
the lesser of:

(1) $85 times the number of pupils enrolled at the participating sites on October
1 of the previous fiscal year; or

(2) the approved supplemental expenditures based on the budget submitted under
subdivision 2. For charter schools in their first year of operation, the maximum deleted text begin grant deleted text end new text begin
funding new text end award must be calculated using the number of pupils enrolled on October 1 of
the current fiscal year. The commissioner may adjust the maximum deleted text begin grant deleted text end new text begin funding new text end award
computed using prior year data for changes in enrollment attributable to school closings,
school openings, grade level reconfigurations, or school district reorganizations between
the prior fiscal year and the current fiscal year.

(b) School districts and charter schools that submit an application and receive
funding under this section must use the funding, consistent with the application, to:

(1) provide teacher training and instruction to more effectively serve students,
including low-income and other disadvantaged students, who participate in preadvanced
deleted text begin and deleted text end new text begin placement, new text end advanced placement new text begin , or international baccalaureate courses or new text end programs;

(2) further develop new text begin preadvanced placement, new text end advanced placement new text begin , or international
baccalaureate new text end courses or programs;

(3) improve the transition between grade levels to better prepare students, including
low-income and other disadvantaged students, for succeeding in new text begin preadvanced placement,
new text end advanced placement new text begin , or international baccalaureate courses or new text end programs;

(4) purchase books and supplies;

(5) pay course or program fees;

(6) increase students' participation in and success with new text begin preadvanced placement,
new text end advanced placement new text begin , or international baccalaureate courses or new text end programs;

(7) expand students' access to preadvanced placement deleted text begin or deleted text end new text begin , new text end advanced placement new text begin , or
international baccalaureate new text end courses or programs through online learning;

(8) hire appropriately licensed personnel to teach additional advanced placement
new text begin or international baccalaureate courses or new text end programs; or

(9) engage in other activity directly related to expanding students' access to,
participation in, and success with preadvanced placement deleted text begin or deleted text end new text begin , new text end advanced placement new text begin , or
international baccalaureate new text end courses deleted text begin and deleted text end new text begin or new text end programs, including low-income and other
disadvantaged students.

Subd. 4.

Annual reports.

(a) Each school district and charter school that receives
a grant under this section annually must collect demographic and other student data to
demonstrate and measure the extent to which the district or charter school raised students'
academic achievement under this program and must report the data to the commissioner
in the form and manner the commissioner determines. The commissioner annually by
February 15 must make summary data about this program available to the education
policy and finance committees of the legislature.

(b) Each school district and charter school that receives a grant under this section
annually must report to the commissioner, consistent with the Uniform Financial
Accounting and Reporting Standards, its actual expenditures for advanced placement deleted text begin and deleted text end new text begin , new text end
preadvanced placement new text begin , and international baccalaureate courses and new text end programs. The report
must demonstrate that the school district or charter school has maintained its effort from
other sources for advanced placement deleted text begin and deleted text end new text begin , new text end preadvanced placement new text begin , and international
baccalaureate courses and new text end programs compared with the previous fiscal year, and the
district or charter school has expended all grant funds, consistent with its approved budget.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment
and applies to the 2007-2008 school year and later.
new text end

Sec. 8.

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 procedures for the academic acceleration of gifted
and talented students. These 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. 9.

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.

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. 10.

Minnesota Statutes 2006, section 120B.31, subdivision 3, is amended to read:

Subd. 3.

Educational accountability.

(a) The Independent Office of Educational
Accountability, as authorized by Laws 1997, First Special Session chapter 4, article 5,
section 28, subdivision 2, is established new text begin , and shall be funded through the Board of Regents
of the University of Minnesota new text end . The office shall advise the education committees of
the legislature and the commissioner of education, at least on a biennial basis, on the
degree to which the statewide educational accountability and reporting system includes a
comprehensive assessment framework that measures school accountability for students
achieving the goals described in the state's results-oriented graduation rule. The office shall
deleted text begin consider deleted text end new text begin determine and annually report to the legislature new text end whether new text begin and how effectively:
new text end

new text begin (1) new text end the statewide system of educational accountability utilizes multiple indicators to
provide valid and reliable comparative and contextual data on students, schools, districts,
and the state, and if not, recommend ways to improve the accountability reporting system deleted text begin . deleted text end new text begin ;
new text end

new text begin (2) the commissioner makes statistical adjustments when reporting student data over
time, consistent with clause (4);
new text end

new text begin (3) the commissioner uses indicators of student achievement growth over time
and a value-added assessment model that estimates the effects of the school and school
district on student achievement to measure school performance, consistent with section
120B.36, subdivision 1;
new text end

new text begin (4) the commissioner makes data available on students who do not pass one or more
of the state's required GRAD tests and do not receive a diploma as a consequence, and
categorizes these data according to gender, race, eligibility for free or reduced lunch, and
English language proficiency; and
new text end

new text begin (5) the commissioner fulfills the requirements under section 127A.095, subdivision 2.
new text end

(b) When the office reviews the statewide educational accountability and reporting
system, it shall also consider:

(1) the objectivity and neutrality of the state's educational accountability system; and

(2) the impact of a testing program on school curriculum and student learning.

new text begin EFFECTIVE DATE. new text end

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

Sec. 11.

Minnesota Statutes 2006, section 120B.36, subdivision 1, is amended to read:

Subdivision 1.

School performance report cards.

(a) The commissioner shall
use objective criteria based on levels of student performance to deleted text begin identify four to six
designations applicable to high and low performing public schools. The objective
criteria shall include deleted text end new text begin report new text end at least student academic performance, school safety, new text begin two
separate student-to-teacher ratios that clearly indicate the definition of teacher consistent
with sections 122A.06 and 122A.15 for purposes of determining these ratios, new text end and staff
characteristics, with a value-added deleted text begin growth deleted text end component added deleted text begin by the 2006-2007 deleted text end new text begin no later
than the 2008-2009 new text end school year. new text begin The report must indicate a school's adequate yearly
progress status, and must not set any designations applicable to high- and low-performing
schools due solely to adequate yearly progress status.
new text end

(b) The commissioner shall develop, annually update, and post on the department
Web site school performance report cards. deleted text begin A school's designation must be clearly stated
on each school performance report card.
deleted text end

(c) The commissioner must make available the first deleted text begin school designations and school deleted text end
performance report cards by November 2003, and during the beginning of each school
year thereafter.

(d) A school or district may appeal new text begin its adequate yearly progress status new text end in writing
deleted text begin a designation under this section deleted text end to the commissioner within 30 days of receiving the
deleted text begin designation deleted text end new text begin notice of its status new text end . The commissioner's decision to uphold or deny an appeal
is final.

(e) School performance report cards new text begin data new text end are nonpublic data under section 13.02,
subdivision 9, until not later than ten days after the appeal procedure described in
paragraph (d) concludes. The department shall annually post school performance report
cards to its public Web site no later than September 1.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment
and applies to the school performance report cards for the 2006-2007 school year and later.
new text end

Sec. 12.

Minnesota Statutes 2006, section 122A.20, subdivision 1, is amended to read:

Subdivision 1.

Grounds for revocation, suspension, or denial.

(a) The Board of
Teaching or Board of School Administrators, whichever has jurisdiction over a teacher's
licensure, may, on the written complaint of the school board employing a teacher, a teacher
organization, or any other interested person, refuse to issue, refuse to renew, suspend, or
revoke a teacher's license to teach for any of the following causes:

(1) immoral character or conduct;

(2) failure, without justifiable cause, to teach for the term of the teacher's contract;

(3) gross inefficiency or willful neglect of duty;

(4) failure to meet licensure requirements; or

(5) fraud or misrepresentation in obtaining a license.

The written complaint must specify the nature and character of the charges.

(b) The Board of Teaching or Board of School Administrators, whichever
has jurisdiction over a teacher's licensure, shall refuse to issue, refuse to renew, or
automatically revoke a teacher's license to teach without the right to a hearing upon
receiving a certified copy of a conviction showing that the teacher has been convicted
of child abuse, as defined in section 609.185, deleted text begin or deleted text end sexual abuse under section 609.342,
609.343, 609.344, 609.345, 609.3451, subdivision 3, or 617.23, subdivision 3, deleted text begin or deleted text end new text begin using
minors in a sexual performance under section 617.246, or possessing pornographic works
involving a minor under section 617.247, or new text end under a similar law of another state or the
United States. The board shall send notice of this licensing action to the district in which
the teacher is currently employed.

(c) A person whose license to teach has been revoked, not issued, or not renewed
under paragraph (b), may petition the board to reconsider the licensing action if the
person's conviction for child abuse or sexual abuse is reversed by a final decision of the
Court of Appeals or the Supreme Court or if the person has received a pardon for the
offense. The petitioner shall attach a certified copy of the appellate court's final decision or
the pardon to the petition. Upon receiving the petition and its attachment, the board shall
schedule and hold a disciplinary hearing on the matter under section 214.10, subdivision 2,
unless the petitioner waives the right to a hearing. If the board finds that, notwithstanding
the reversal of the petitioner's criminal conviction or the issuance of a pardon, the
petitioner is disqualified from teaching under paragraph (a), clause (1), the board shall
affirm its previous licensing action. If the board finds that the petitioner is not disqualified
from teaching under paragraph (a), clause (1), it shall reverse its previous licensing action.

(d) For purposes of this subdivision, the Board of Teaching is delegated the authority
to suspend or revoke coaching licenses.

new text begin EFFECTIVE DATE. new text end

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

Sec. 13.

Minnesota Statutes 2006, section 122A.61, is amended by adding a
subdivision to read:

new text begin Subd. 3. new text end

new text begin Coursework and training. new text end

new text begin A school district may use the revenue
reserved under subdivision 1 for grants to the district's teachers to pay for coursework
and training leading to certification as a college in the schools or concurrent enrollment
teacher. In order to receive a grant, the teacher must be enrolled in a program that includes
coursework and training focused on teaching a core subject.
new text end

Sec. 14.

Minnesota Statutes 2006, section 122A.72, subdivision 5, is amended to read:

Subd. 5.

Center functions.

new text begin (a) new text end A teacher center shall perform functions according
to this subdivision. The center shall assist teachers, diagnose learning needs, experiment
with the use of multiple instructional approaches, assess pupil outcomes, assess staff
development needs and plans, and teach school personnel about effective pedagogical
approaches. The center shall develop and produce curricula and curricular materials
designed to meet the educational needs of pupils being served, by applying educational
research and new and improved methods, practices, and techniques. The center shall
provide programs to improve the skills of teachers to meet the special educational needs of
pupils. The center shall provide programs to familiarize teachers with developments in
curriculum formulation and educational research, including how research can be used to
improve teaching skills. The center shall facilitate sharing of resources, ideas, methods,
and approaches directly related to classroom instruction and improve teachers' familiarity
with current teaching materials and products for use in their classrooms. The center shall
provide in-service programs.

new text begin (b) Each teacher center must provide a professional development program to train
interested and highly qualified elementary, middle, and secondary teachers, selected by the
employing school district, to assist other teachers in that district with mathematics and
science curriculum, standards, and instruction so that all teachers have access to:
new text end

new text begin (1) high quality professional development programs in mathematics and science
that address curriculum, instructional methods, alignment of standards, and performance
measurements, enhance teacher and student learning, and support state mathematics and
science standards; and
new text end

new text begin (2) research-based mathematics and science programs and instructional models
premised on best practices that inspire teachers and students and have practical classroom
application.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for the 2007-2008 school year and
later.
new text end

Sec. 15.

Minnesota Statutes 2006, section 123B.02, is amended by adding a
subdivision to read:

new text begin Subd. 24. new text end

new text begin Membership in economic development, community, and civic
organizations. new text end

new text begin The board may authorize and pay for the membership of the school
district or of any district representative designated by the board in those local economic
development associations or other community or civic organizations that the board deems
appropriate.
new text end

Sec. 16.

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;

(5) 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
deleted text begin basic standards test deleted text end new text begin MCA-IIs new text end taken in the eighth grade, identifying the highest student
passage rate the district expects it will be able to attain on the deleted text begin basic standards test deleted text end new text begin MCA-IIs new text end
by grade 12, new text begin and new text end the amount of expenditures that the district requires to attain the targeted
student passage rate deleted text begin , and how much the district is cross-subsidizing programs with special
education, basic skills, and general education revenue deleted text end ; and

(6) perform other duties prescribed by the board.

Sec. 17.

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. 18.

new text begin [124D.091] CONCURRENT ENROLLMENT PROGRAM AID.
new text end

new text begin Subdivision 1. new text end

new text begin Accreditation. new text end

new text begin To establish a uniform standard by which
concurrent enrollment courses and professional development activities may be measured,
postsecondary institutions are encouraged to apply for accreditation by the National
Alliance of Concurrent Enrollment Partnership.
new text end

new text begin Subd. 2. new text end

new text begin Eligibility. new text end

new text begin A district that offers a concurrent enrollment course according
to an agreement under section 124D.09, subdivision 10, is eligible to receive aid for the
costs of providing postsecondary courses at the high school. Beginning in fiscal year 2011,
districts only are eligible for aid if the college or university concurrent enrollment courses
offered by the district are accredited by the National Alliance of Concurrent Enrollment
Partnership, in the process of being accredited, or are shown by clear evidence to be of
comparable standard to accredited courses.
new text end

new text begin Subd. 3. new text end

new text begin Aid. new text end

new text begin An eligible district shall receive $150 per pupil enrolled in a
concurrent enrollment course. The money must be used to defray the cost of delivering
the course at the high school. The commissioner shall establish application procedures
and deadlines for receipt of aid payments.
new text end

Sec. 19.

Minnesota Statutes 2006, section 124D.095, subdivision 2, is amended to read:

Subd. 2.

Definitions.

For purposes of this section, the following terms have the
meanings given them.

(a) "Online learning" is an interactive course or program that delivers instruction
from a teacher to a student by computer; is combined with other traditional delivery
methods that include frequent student assessment and may include actual teacher contact
time; and meets or exceeds state academic standards.

(b) "Online learning provider" is a school district, an intermediate school district, an
organization of two or more school districts operating under a joint powers agreement, or
a charter school located in Minnesota that provides online learning to students.

(c) "Student" is a Minnesota resident enrolled in a school under section 120A.22,
subdivision 4, in kindergarten through grade 12.

(d) "Online learning student" is a student enrolled in an online learning course or
program delivered by an online provider under paragraph (b).

(e) "Enrolling district" means the school district or charter school in which a student
is enrolled under section 120A.22, subdivision 4, for purposes of compulsory attendance.

new text begin (f) "Supplemental online learning" means an online course taken in place of a course
period during the regular school day at a local district school.
new text end

new text begin (g) "Full-time online provider" means an enrolling school authorized by the
department to deliver comprehensive public education at any or all of the elementary,
middle, or high school levels.
new text end

Sec. 20.

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

Subd. 3.

Authorization; notice; limitations on enrollment.

(a) A student may
apply deleted text begin to an online learning provider to enroll in online learning deleted text end new text begin for full-time enrollment in
an approved online learning program under section 124D.03, 124D.08 or 124D.10, or for
supplemental online learning. Notwithstanding sections 124D.03, 124D.08, and 124D.10,
procedures for enrolling in online learning shall be as provided in this subdivision new text end . 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. deleted text begin 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. deleted text end new text begin In order that a student may enroll in online learning, the student
and the student's parents must submit an application to the online learning provider and
identify the reason for enrolling in online learning. The online learning provider that
accepts a student under this section must within ten days notify the student and the
enrolling district in writing if the enrolling district is not the online learning provider. The
student and family must notify the online learning provider of their intent to enroll in
online learning within ten days of acceptance, at which time the student and parent must
sign a statement of assurance that they have reviewed the online course or program and
understand the expectations of online learning enrollment. The online learning provider
must notify the enrolling district of the student's enrollment in online learning in writing
on a form provided by the department.
new text end

new text begin (b) Supplemental online learning notification to the enrolling district upon student
enrollment in the online learning program will include the courses or program, credits
to be awarded, the start date of online enrollment, and confirmation that the courses will
meet the student's graduation plan. A student may enroll in supplemental online learning
courses up to the midpoint of the enrolling district's term. The enrolling district may waive
this requirement for special circumstances and upon acceptance by the online provider.
new text end

deleted text begin (b) An online learning student must notify the enrolling district at least 30 days
before taking an online learning course or program if the enrolling district is not providing
the online learning. deleted text end new text begin (c) new text end 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.

deleted text begin (c) deleted text end new text begin (d) new text end 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.

deleted text begin (d) deleted text end new text begin (e) new text end 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. 21.

Minnesota Statutes 2006, section 124D.095, subdivision 4, is amended to read:

Subd. 4.

Online learning parameters.

(a) An online learning student must receive
academic credit for completing the requirements of an online learning course or program.
Secondary credits granted to an online learning student must be counted toward the
graduation and credit requirements of the enrolling district. new text begin An online learning provider
must make available to the enrolling district the course syllabus, standard alignment,
content outline, assessment requirements, and contact information for supplemental online
courses taken by students in the enrolling district. new text end The enrolling district must apply the
same graduation requirements to all students, including online learning students, and
must continue to provide nonacademic services to online learning students. If a student
completes an online learning course or program that meets or exceeds a graduation
standard or grade progression requirement at the enrolling district, that standard or
requirement is met. The enrolling district must use the same criteria for accepting online
learning credits or courses as it does for accepting credits or courses for transfer students
under section 124D.03, subdivision 9. The enrolling district may reduce the deleted text begin teacher
contact time deleted text end new text begin course schedule new text end of an online learning student in proportion to the number
of online learning courses the student takes from an online learning provider that is not
the enrolling district.

(b) An online learning student may:

(1) enroll new text begin in supplemental online learning courses new text end during a single school year deleted text begin in a
maximum of 12 semester-long courses or their equivalent delivered by an online learning
provider or the enrolling district deleted text end new text begin to a maximum of 50 percent of the student's full schedule
of courses per term. A student may exceed the supplemental online learning registration
limit if the enrolling district grants permission for supplemental online learning enrollment
above the limit, or if an agreement is made between the enrolling district and the online
learning provider for instructional services new text end ;

(2) complete course work at a grade level that is different from the student's current
grade level; and

(3) enroll in additional courses with the online learning provider under a separate
agreement that includes terms for payment of any tuition or course fees.

(c) An online learning student has the same access to the computer hardware and
education software available in a school as all other students in the enrolling district. An
online learning provider must assist an online learning student whose family qualifies
for the education tax credit under section 290.0674 to acquire computer hardware and
educational software for online learning purposes.

(d) An enrolling district may offer online learning to its enrolled students. Such
online learning does not generate online learning funds under this section. An enrolling
district that offers online learning only to its enrolled students is not subject to the
reporting requirements or review criteria under subdivision 7. A teacher with a Minnesota
license must assemble and deliver instruction to enrolled students receiving online
learning from an enrolling district. The delivery of instruction occurs when the student
interacts with the computer or the teacher and receives ongoing assistance and assessment
of learning. The instruction may include curriculum developed by persons other than a
teacher with a Minnesota license.

(e) An online learning provider that is not the enrolling district is subject to
the reporting requirements and review criteria under subdivision 7. A teacher with a
Minnesota license must assemble and deliver instruction to online learning students. The
delivery of instruction occurs when the student interacts with the computer or the teacher
and receives ongoing assistance and assessment of learning. The instruction may include
curriculum developed by persons other than a teacher with a Minnesota license. Unless
the commissioner grants a waiver, a teacher providing online learning instruction must not
instruct more than 40 students in any one online learning course or program.

new text begin (f) To enroll in more than 50 percent of the student's full schedule of courses per term
in online learning, the student must qualify to exceed the supplemental online learning
registration limit under paragraph (b) or apply for enrollment to an approved full-time
online learning program following appropriate procedures in subdivision 3, paragraph (a).
Full-time online learning students may enroll in classes at a local school per contract for
instructional services between the online learning provider and the school district.
new text end

Sec. 22.

Minnesota Statutes 2006, section 124D.095, subdivision 7, is amended to read:

Subd. 7.

Department of Education.

(a) The department must review and certify
online learning providers. The online learning courses and programs must be rigorous,
aligned with state academic standards, and contribute to grade progression in a single
subject. Online learning providers must deleted text begin affirm deleted text end new text begin demonstrate new text end to the commissioner that
online learning courses have equivalent standards or instruction, curriculum, and
assessment requirements as other courses offered to enrolled students. The online learning
provider must also demonstrate expectations for actual teacher contact time or other
student-to-teacher communication. Once an online learning provider is approved under
this paragraph, all of its online learning course offerings are eligible for payment under
this section unless a course is successfully challenged by an enrolling district or the
department under paragraph (b).

(b) An enrolling district may challenge the validity of a course offered by an online
learning provider. The department must review such challenges based on the certification
procedures under paragraph (a). The department may initiate its own review of the validity
of an online learning course offered by an online learning provider.

(c) The department may collect a fee not to exceed $250 for certifying online
learning providers or $50 per course for reviewing a challenge by an enrolling district.

(d) The department must develop, publish, and maintain a list of approved online
learning providers and online learning courses and programs that it has reviewed and
certified.

Sec. 23.

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. 24.

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. 25.

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. 26.

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. 27.

Minnesota Statutes 2006, section 124D.66, subdivision 3, is amended to read:

Subd. 3.

Eligible services.

(a) Assurance of mastery programs may provide direct
new text begin scientific, research-based new text end instructional services new text begin and intervention new text end to an eligible pupil, or a
group of eligible pupils, under the following conditions in paragraphs (b) to (d).

(b) Instruction may be provided at one or more grade levels from kindergarten to
grade 8 and for students in grades 9 through 12 who were enrolled in grade 8 before
the 2005-2006 school year and have failed the basic skills tests, or were enrolled in
grade 8 in the 2005-2006 school year and later and who have failed the Minnesota
Comprehensive Assessments (MCA-IIs) in reading, mathematics, or writing as required
for high school graduation under section 120B.02. If an assessment of pupils' needs within
a district demonstrates that the eligible pupils in grades kindergarten to grade 8 are being
appropriately served, a district may serve eligible pupils in grades 9 to 12.

(c) Instruction must be provided under the supervision of the eligible pupil's regular
classroom teacher. Instruction may be provided by the eligible pupil's classroom teacher,
by another teacher, by a team of teachers, or by an education assistant or aide. A special
education teacher may provide instruction, but instruction that is provided under this
section is not eligible for aid under section 125A.76.

(d) The instruction that is provided must differ from the initial instruction the
pupil received in the regular classroom setting. The instruction may differ by presenting
different curriculum than was initially presented in the regular classroom or by presenting
the same curriculum:

(1) at a different rate or in a different sequence than it was initially presented;

(2) using different teaching methods or techniques than were used initially; or

(3) using different instructional materials than were used initially.

Sec. 28.

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

Subdivision 1.

Awards.

The deleted text begin commissioner may award deleted text end new text begin director of the Office
of Higher Education 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 deleted text begin commissioner deleted text end new text begin director of the Office of Higher Education new text end , 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. 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.
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. 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. 29.

new text begin [124D.8955] PARENT AND FAMILY INVOLVEMENT POLICY.
new text end

new text begin (a) In order to promote and support student achievement, a local school board is
encouraged to formally adopt and implement a parent and family involvement policy that
promotes and supports:
new text end

new text begin (1) communication between home and school that is regular, two-way, and
meaningful;
new text end

new text begin (2) parenting skills;
new text end

new text begin (3) parents and caregivers who play an integral role in assisting student learning and
learn about fostering students' academic success and learning at home and school;
new text end

new text begin (4) welcoming parents in the school and seeking their support and assistance;
new text end

new text begin (5) partnerships with parents in the decisions that affect children and families
in the schools; and
new text end

new text begin (6) providing community resources to strengthen schools, families, and student
learning.
new text end

new text begin (b) A school board that implements a parent and family involvement policy under
paragraph (a) must convene an advisory committee composed of an equal number of
resident parents who are not district employees and school staff to make recommendations
to the board on developing and evaluating the board's parent and family involvement
policy. If possible, the advisory committee must represent the diversity of the district. The
advisory committee must consider the district's demographic diversity and barriers to
parent involvement when developing its recommendations. The advisory committee must
present its recommendations to the board for board consideration.
new text end

new text begin (c) The board must consider best practices when implementing this policy.
new text end

new text begin (d) The board periodically must review this policy to determine whether it is aligned
with the most current research findings on parent involvement policies and practices and
how effective the policy is in supporting increased student achievement.
new text end

new text begin (e) Nothing in this section obligates a school district to exceed any parent or family
involvement requirement under federal law.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for the 2008-2009 school year and
later.
new text end

Sec. 30.

Minnesota Statutes 2006, section 125A.50, is amended to read:

125A.50 ALTERNATIVE DELIVERY OF SPECIALIZED INSTRUCTIONAL
SERVICES.

Subdivision 1.

Commissioner approval.

The commissioner may approve
applications from districts new text begin initiating or significantly changing a program new text end to provide
prevention services as an alternative to special education and other compensatory
programs. A district with an approved program may provide instruction and services in a
regular education classroom, or an area learning center, to eligible pupils. Pupils eligible
to participate in the program are deleted text begin low-performing deleted text end pupils who deleted text begin , based on documented
experience, the professional judgment of a classroom teacher, or a team of licensed
professionals, would deleted text end new text begin need additional academic or behavioral support to succeed in the
general education environment and who may new text end eventually qualify for special education
instruction or related services under sections 125A.03 to 125A.24 and 125A.65 if the
intervention services authorized by this section were unavailable. Pupils may be provided
services during extended school days and throughout the entire year and through the
assurance of mastery program under sections 125A.03 to 125A.24 and 125A.65.

Subd. 2.

Application contents.

The application must set forth:

(1) instructional services available to eligible pupils under section 124D.66,
subdivision 2, and pupils with a disability under section 125A.02;

(2) criteria to select pupils for the program and the assessment procedures to
determine eligibility;

(3) involvement in the program of parents of pupils in the program, parent advocates,
and community special education advocates;

(4) accounting procedures to document that federal special education money is
used to supplement or increase the level of special education instruction and related
services provided with state and local revenue, but in no case to supplant the state and
local revenue, and that districts are expending at least the amount for special education
instruction and related services required by federal law;

(5) the role of deleted text begin regular deleted text end new text begin general new text end and special education teachers in planning deleted text begin and deleted text end new text begin , new text end
implementing new text begin , and evaluating new text end the program; deleted text begin and
deleted text end

(6) new text begin an annual budget detailing program expenditures; and
new text end

new text begin (7) new text end other information requested by the commissioner.

Subd. 3.

Evaluation.

The application must also set forth the review and evaluation
procedures to be used by the district addressing at least the following:

(1) the number of pupils with and without a disability served;

(2) the impact of the program on the academic new text begin and behavioral new text end progress deleted text begin and social
adjustment deleted text end of the pupils;

(3) the level of satisfaction teachers, parents, and pupils have with the program;

(4) the effect of the program on the number of referrals for special education, federal
deleted text begin chapter deleted text end new text begin Title new text end 1, and other programs; new text begin and
new text end

(5) deleted text begin the amount of time spent by teachers on procedural activities;
deleted text end

deleted text begin (6) the increased amount of time the pupil is in a regular education classroom; and
deleted text end

deleted text begin (7) deleted text end cost implications.

Subd. 4.

new text begin Budget new text end review deleted text begin for excess expenditures deleted text end new text begin and approval new text end .

new text begin (a) Each year
before a district receives aid under section 125A.78, the district must submit to the
commissioner for review and approval a budget detailing program expenditures for the
fiscal year. new text end The commissioner must deleted text begin review each application to deleted text end determine whether the
personnel, equipment, supplies, deleted text begin residential aid, deleted text end and deleted text begin summer deleted text end new text begin extended new text end school new text begin year new text end are
necessary to meet the district's obligation to provide special instruction and services
to children with a disability according to sections 125A.03 to 125A.24 and 125A.65.
The commissioner may not approve revenue for any expenditures determined to be
unnecessary.

new text begin (b) The commissioner must not approve budget increases under this section that
would cause the state to fail to meet maintenance of effort requirements under federal
special education law. The commissioner must establish criteria for prioritizing and
approving budget increases, which may include criteria such as maintaining current
programs, locating programs throughout the state, and developing innovative programs.
new text end

Subd. 5.

Annual report.

Each year the district must submit to the commissioner a
report containing the information described in subdivision 3.

Subd. 6.

Pupil rights.

A pupil participating in the program must be individually
evaluated according to the pupil's actual abilities and needs. A pupil who is eligible
for services under sections 125A.03 to 125A.24 and 125A.65 is entitled to procedural
protections provided under United States Code, title 20, section 33, in any matter that
affects the identification, evaluation, placement, or change in placement of a pupil. The
district must ensure the protection of a pupil's civil rights, provide equal educational
opportunities, and prohibit discrimination. Failure to comply with this subdivision will at
least cause a district to become ineligible to participate in the program. Notwithstanding
rules of the Department of Education, new text begin the commissioner cannot waive new text end a pupil's rights
under this section deleted text begin cannot be waived by the commissioner deleted text end .

Sec. 31.

Minnesota Statutes 2006, section 125A.56, is amended to read:

125A.56 ALTERNATE INSTRUCTION REQUIRED BEFORE ASSESSMENT
REFERRAL deleted text begin ; WAIVER deleted text end .

new text begin Subdivision 1. new text end

new text begin Requirement. new text end

(a) Before a pupil is referred for a special education
deleted text begin assessment deleted text end new text begin evaluation new text end , the district must conduct and document at least two instructional
strategies, alternatives, or interventions new text begin using a system of scientific, research-based
instruction and intervention in academics or behavior, based on the pupil's needs, new text end while
the pupil is in the regular classroom. The pupil's teacher must deleted text begin provide the documentation deleted text end new text begin
document the results new text end . A special education deleted text begin assessment deleted text end new text begin evaluation new text end team may waive this
requirement when deleted text begin they determine deleted text end new text begin it determines new text end the pupil's need for the deleted text begin assessment deleted text end new text begin
evaluation new text end is urgent. This section may not be used to deny a pupil's right to a special
education deleted text begin assessment deleted text end new text begin evaluation new text end .

(b) A school district shall use alternative intervention services, including the
assurance of mastery program under section 124D.66 deleted text begin and deleted text end new text begin , new text end the supplemental early
education program under section 124D.081, new text begin or an early intervening services program
under subdivision 2 new text end to serve at-risk deleted text begin students deleted text end new text begin pupils new text end who demonstrate a need for alternative
instructional strategies or interventions.

new text begin Subd. 2. new text end

new text begin Early intervening services program. new text end

new text begin (a) A district may meet the
requirement under subdivision 1 by establishing an early intervening services program
that includes:
new text end

new text begin (1) a system of valid and reliable general outcome measures aligned to state academic
standards that is administered at least three times per year to pupils in kindergarten
through grade 8 who need additional academic or behavioral support to succeed in the
general education environment. The school must provide interim assessments that
measure pupils' performance three times per year and implement progress monitoring
appropriate to the pupil. For purposes of this section, "progress monitoring" means the
frequent and continuous measurement of a pupil's performance that includes these three
interim assessments and other pupil assessments during the school year. A school, at its
discretion, may allow pupils in grades 9 through 12 to participate in interim assessments;
new text end

new text begin (2) a system of scientific, research-based instruction and intervention; and
new text end

new text begin (3) an organizational plan that allows teachers, paraprofessionals, and volunteers
funded through various sources to work as a grade-level team or use another configuration
across grades and settings to deliver instruction. The team must be trained in scientific,
research-based instruction and intervention. Teachers and paraprofessionals at a site
operating under this paragraph must work collaboratively with those pupils who need
additional academic or behavioral support to succeed in a general education environment.
new text end

new text begin (b) As an intervention under paragraph (a), clause (2), staff generating special
education aid under section 125A.76 may provide small group instruction to pupils who
need additional academic or behavioral support to succeed in the general education
environment. Small group instruction that includes pupils with a disability may be
provided in the general education environment if the needs of the pupils with a disability
are met, consistent with their individual education plans, and all pupils in the group
receive the same level of instruction and make the same progress in the instruction or
intervention. Teachers and paraprofessionals must ensure that the needs of pupils with a
disability participating in small group instruction under this paragraph remain the focus
of the instruction. Expenditures attributable to the time special education staff spends
providing instruction to nondisabled pupils in this circumstance is eligible for special
education aid under section 125A.76 as an incidental benefit if:
new text end

new text begin (1) the group consists primarily of disabled pupils;
new text end

new text begin (2) no special education staff are added to meet nondisabled pupils' needs; and
new text end

new text begin (3) the primary purpose of the instruction is to implement the individual education
plans of pupils with a disability in this group.
new text end

new text begin Expenditures attributable to the time special education staff spends providing small
group instruction to nondisabled pupils that affords more than an incidental benefit to such
pupils is not eligible for special education aid under section 125A.76, except that such
expenditures may be included in the alternative delivery initial aid adjustment under
section 125A.78 if the district has an approved program under section 125A.50. During
each 60-day period that a nondisabled pupil participates in small group instruction under
this paragraph, the pupil's progress monitoring data must be examined to determine
whether the pupil is making progress and, if the pupil is not making progress, the pupil's
intervention strategies must be changed or the pupil must be referred for a special
education evaluation.
new text end

Sec. 32.

Minnesota Statutes 2006, section 127A.095, subdivision 2, is amended to read:

Subd. 2.

No Child Left Behind review.

(a) The legislature intends to require
the Department of Education to conduct a comprehensive review of the consolidated
state plan the state submitted to the federal Department of Education to implement the
No Child Left Behind Act. The Minnesota Department of Education shall seek waivers
under paragraph (b). If the Department of Education is unable to obtain waivers under
paragraph (b), it should recommend in its report under paragraph (b) whether the state
should opt out of the No Child Left Behind Act.

(b) The commissioner, by January 15, deleted text begin 2007 deleted text end new text begin 2008 new text end , shall report to the house of
representatives and senate committees having jurisdiction over kindergarten through grade
12 education policy and finance whether the department has received approval from
the federal Department of Education to:

(1) deleted text begin allow the state to develop a plan for determining adequate yearly progress that
uses multiple measures of student achievement that include value-added measurement of
student achievement in addition to standardized test results to evaluate school and student
performance deleted text end new text begin participate in the growth model pilot program new text end ;

(2) deleted text begin exclude from sanctions a school that is classified as not having made adequate
yearly progress due solely to different subgroups testing below proficient levels for at
least two consecutive years;
deleted text end

deleted text begin (3) allow the state to average three years of data for the purposes of identifying a
school for improvement;
deleted text end

deleted text begin (4) allow the state to use No Child Left Behind Act money to provide supplemental
education services only in the academic subject area that causes a school to miss adequate
yearly progress;
deleted text end

deleted text begin (5) deleted text end exclude from sanctions schools that have not made adequate yearly progress due
solely to a subgroup of students with disabilities not testing at a proficient level;

deleted text begin (6) deleted text end new text begin (3) new text end identify a school as not making adequate yearly progress only after the school
has missed the adequate yearly progress targets in the same deleted text begin subject and deleted text end subgroup for two
consecutive years;

deleted text begin (7) limit the score of a student within multiple subgroups to the smallest subgroup in
which that student is included when calculating adequate yearly progress;
deleted text end

deleted text begin (8) deleted text end new text begin (4) new text end determine when to hold schools accountable for including a student with
limited English proficiency in adequate yearly progress calculations; deleted text begin and
deleted text end

deleted text begin (9) use a fully computer-adaptive test for purposes of compliance with the No Child
Left Behind Act
deleted text end

new text begin (5) allow a district not making adequate yearly progress to offer supplemental
educational services as an option before offering school choice;
new text end

new text begin (6) allow a district not making adequate yearly progress to also be the supplemental
educational services provider;
new text end

new text begin (7) allow the state to maintain a subgroup size to 40 for the purposes of calculating
adequate yearly progress for subgroups of students with limited English proficiency and
subgroups of students with disabilities; and
new text end

new text begin (8) create flexibility to enable the state to define and identify highly qualified
teachers new text end .

Sec. 33.

Laws 2005, First Special Session chapter 5, article 2, section 81, as amended
by Laws 2006, chapter 263, article 2, section 20, is amended to read:

Sec. 81. BOARD OF SCHOOL ADMINISTRATORS; RULEMAKING
AUTHORITY.

new text begin (a) new text end On or before June 30, deleted text begin 2007 deleted text end new text begin 2008 new text end , the Board of School Administrators may adopt
rules to reflect the changes in duties, responsibilities, and roles of school administrators
under sections 121A.035, 121A.037 and 299F.30, and to make technical revisions and
clarifications to Minnesota Rules, chapter 3512.

new text begin (b) Any rules the board adopts under the authority in paragraph (a) must retain the
requirement in effect in calendar year 2006 governing classroom teaching experience for
licensure as a principal.
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. 34. 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 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. 35. new text begin RULEMAKING AUTHORIZED; SUPPLEMENTAL EDUCATION
SERVICE PROVIDERS.
new text end

new text begin Notwithstanding the two-year limit under Minnesota Statutes, section 14.388,
subdivision 1, clause (2), the expired Minnesota Rules 2005, part 3512.5400, governing
supplemental education service providers is revived and readopted without further
administrative action. The commissioner of education, as soon as possible, must amend
this rule under Minnesota Statutes 2006, section 14.389, to include specifications that
provide the basis for withdrawing Department of Education approval from supplemental
education service providers that fail to increase students' academic proficiency for two
consecutive school years. The amended rule must clearly indicate:
new text end

new text begin (1) how the Department of Education will distinguish the effect of supplemental
education from the effect of regular school instruction on students' academic performance;
and
new text end

new text begin (2) whether the Department of Education will assess effectiveness of the
supplemental education service providers using an absolute measure, such as percent of
"proficient" students or measure individual students' growth toward proficiency over time.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective retroactive to September 15, 2005.
new text end

Sec. 36. 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. 37. new text begin GRANT PROGRAM TO PROMOTE PROFESSIONAL TEACHING
STANDARDS.
new text end

new text begin Subdivision 1. new text end

new text begin Establishment. new text end

new text begin A grant program to promote professional teaching
standards through the National Board for Professional Teaching Standards is established to
provide teachers with the opportunity to receive National Board for Professional Teaching
Standards certification and to reward teachers who have already received this certification.
new text end

new text begin Subd. 2. new text end

new text begin Eligibility. new text end

new text begin An applicant for a grant must:
new text end

new text begin (1) be a licensed teacher employed in a Minnesota public school;
new text end

new text begin (2) have a minimum of five school years' classroom teaching experience; and
new text end

new text begin (3) demonstrate acceptance by the National Board for Professional Teaching
Standards as a candidate for board certification or as a recipient of board certification.
new text end

new text begin Subd. 3. new text end

new text begin Application process. new text end

new text begin To obtain a grant to participate in the National Board
for Professional Teaching Standards certification process or to receive a reward for already
completing the board certification process, a teacher must submit an application to the
commissioner of education in the form and manner established by the commissioner. The
commissioner shall consult with the Board of Teaching when reviewing the applications.
The commissioner shall also provide program support to assist applicants during the
national board certification process.
new text end

new text begin Subd. 4. new text end

new text begin Grant awards; proceeds. new text end

new text begin (a) The commissioner may award grants of
$1,000 to eligible teachers accepted as candidates for the National Board for Professional
Teaching Standards certification or for national board certification renewal for partial
payment of the teacher's candidate application fee.
new text end

new text begin (b) The commissioner shall award grants of $3,000 to all eligible teacher applicants
who hold certification from the National Board for Professional Teaching Standards and
$2,000 for renewal of their national board certification.
new text end

new text begin (c) The commissioner shall also award grants to eligible teachers who have received
National Board for Professional Teaching Standards certification within one year prior to
the date of the teacher's application for a grant to use for educational purposes, including
purchasing instructional materials, equipment, or supplies, and pursuing professional
development opportunities. The commissioner, under this paragraph, may award grants not
to exceed $1,000 after consulting with interested stakeholders regarding the grant amount.
new text end

Sec. 38. new text begin WORLD LANGUAGES PILOT PROGRAM GRANTS.
new text end

new text begin (a) A pilot program awarding five world languages grants to interested and qualified
school sites and school districts is established for fiscal years 2008 and 2009 to develop
and implement sustainable, high-quality model world languages programs and to enhance
existing world languages programs at various grade levels for students in kindergarten
through grade 12. Program participants must simultaneously support both non-English
language learners in maintaining their native language while mastering English and native
English speakers in learning other languages.
new text end

new text begin (b) Interested school sites and school districts must apply to the commissioner of
education in the form and manner the commissioner determines. The application must
indicate whether the applicant intends to develop a new world languages program or
expand an existing world languages program and whether the applicant intends to offer
more intensive programs or programs that are readily accessible to larger numbers of
students. Applicants must agree to disseminate information about their programs to
interested school sites and school districts.
new text end

new text begin (c) The commissioner must award grants to qualified applicants that satisfy the
requirements in paragraphs (a) and (b). To the extent there are qualified applicants, the
commissioner must award grants to qualified applicants on an equitable geographic
basis to the extent feasible. The commissioner must award three grants to kindergarten
through grade 8 sites, one grant to a qualified site interested in developing or enhancing a
sustainable Mandarin Chinese program, and one grant to an indigenous American Indian
world languages program. Grantees must expend the grant consistent with the content of
their application and this section.
new text end

new text begin (d) The commissioner shall provide for an evaluation of the grantees to identify
exemplary model world languages programs and the staff development needs of world
languages teachers and report the findings of the evaluation to the education policy and
finance committees of the legislature by February 15, 2010.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for the 2007-2008 school year.
new text end

Sec. 39. new text begin BILINGUAL AND MULTILINGUAL CERTIFICATES; DEPARTMENT
OF EDUCATION.
new text end

new text begin The Department of Education, in consultation with interested stakeholders, must
develop and recommend to the legislature by February 15, 2008, the standards and process
for awarding bilingual and multilingual certificates to those kindergarten through grade
12 students who demonstrate and maintain a requisite level of proficiency in multiple
languages.
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. 40. new text begin SCHOOL PERFORMANCE REPORT CARDS; ADVISORY GROUP
RECOMMENDATIONS.
new text end

new text begin (a) To sustain equity and excellence in education, the Independent Office of
Educational Accountability under Minnesota Statutes, section 120B.31, subdivision 3,
must convene and facilitate an advisory group of curriculum and measurement experts
to consider and recommend how to structure school performance data and school
performance report cards under Minnesota Statutes, section 120B.36, subdivision 1, to
fully, fairly, and accurately report student achievement and emphasize school excellence
under Minnesota's system of educational accountability and public reporting. The advisory
group at least must consider and recommend how to: evaluate student achievement using
multiple measures of growth that take into account student demographic characteristics,
consistent with Minnesota Statutes, section 120B.31, subdivision 4; and identify
outstanding schools based on student achievement and achievement growth and using
multiple performance measures that are objective and consistent with the highest standards
in the field of educational measurements and accountability.
new text end

new text begin (b) Advisory group members under paragraph (a) include: two qualified experts in
measurement in education selected by the State Council on Measurement in Education;
one qualified expert in elementary curriculum and one qualified expert in secondary
curriculum selected by the Minnesota Association for Supervision and Curriculum
Development; three regionally diverse school district research and evaluation directors
selected by the Minnesota Assessment Group; one school superintendent selected by the
Minnesota Association of School Administrators; one University of Minnesota faculty
selected by the dean of the College of Education and Human Development; one licensed
teacher selected by Education Minnesota; two parents selected by the Minnesota Parent
Teachers Association with expertise in measurement in education; and two employees
from the Minnesota Department of Education selected by the commissioner. Advisory
group members' terms and other advisory group matters are subject to Minnesota Statutes,
section 15.059, subdivision 6. The Independent Office of Educational Accountability
must present the advisory group's recommendations under paragraph (a) to the education
policy and finance committees of the legislature by February 15, 2008. The advisory
group expires February 16, 2008.
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. 41. new text begin ADVISORY TASK FORCE ON MINNESOTA AMERICAN INDIAN
TRIBES AND COMMUNITIES AND K-12 STANDARDS-BASED REFORM.
new text end

new text begin Subdivision 1. new text end

new text begin Duties. new text end

new text begin An advisory task force on Minnesota American Indian tribes
and communities and K-12 standards-based reform is established to examine the impact of
state and federal standards-based reform on Minnesota's K-12 students, with particular
attention to the impacts on American Indian students enrolled in Minnesota schools.
The task force, in consultation with American Indian educators, parents, and others who
advocate for American Indian children, must determine if:
new text end

new text begin (1) state education standards and assessments are appropriate for American Indian
students;
new text end

new text begin (2) American Indian students are fairly compared;
new text end

new text begin (3) American Indian students receive the assistance they need to achieve the state
standards; and
new text end

new text begin (4) schools receive financial and technical assistance sufficient to meet the
educational needs of American Indian students.
new text end

new text begin Subd. 2. new text end

new text begin Membership. new text end

new text begin (a) The commissioner of education shall appoint
representatives from the following organizations and agencies to the task force:
new text end

new text begin (1) Department of Education staff experienced in working with American Indian
students and programs;
new text end

new text begin (2) Minnesota American Indian tribes and communities;
new text end

new text begin (3) the Minnesota School Board Association;
new text end

new text begin (4) school administrators;
new text end

new text begin (5) Education Minnesota;
new text end

new text begin (6) the state Board of Teaching;
new text end

new text begin (7) the Minnesota Council on Indian Affairs;
new text end

new text begin (8) postsecondary faculty who serve as instructors in teacher preparation programs;
and
new text end

new text begin (9) local community service providers who work with Minnesota American Indian
tribes and communities.
new text end

new text begin (b) After the task force has been convened, the commissioner of education may
appoint additional public members recommended by members of the task force.
new text end

new text begin Subd. 3. new text end

new text begin Organization; compensation. new text end

new text begin (a) The commissioner shall complete
appointments to the task force, under subdivision 2, paragraph (a), by September 1, 2007.
The commissioner of education or the commissioner's designee shall convene the first
meeting of the task force within 30 days after the appointments are completed. The task
force shall select a chair from its membership at the first meeting.
new text end

new text begin (b) Vacancies, renewal, and compensation of members are as provided in Minnesota
Statutes, section 15.059, subject to the availability of appropriations.
new text end

new text begin (c) The commissioner of education must provide the task force with administrative
and clerical support.
new text end

new text begin Subd. 4. new text end

new text begin Recommendations. new text end

new text begin By February 15, 2008, the task force must report
recommendations and suggest implementing legislation to the legislative committees and
divisions with jurisdiction over education policy and finance regarding the changes, if
any, to the state's educational performance standards, content requirements, assessments
measures, and teacher preparation programs that will enable Minnesota schools to most
effectively meet the educational needs of American Indian students consistent with
Minnesota Statutes, sections 124D.71 to 124D.82.
new text end

new text begin Subd. 5. new text end

new text begin Expiration. new text end

new text begin This section expires the day following the submission of the
report required by subdivision 4.
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. 42. new text begin AMERICAN INDIAN SCHOLARSHIP.
new text end

new text begin Administration of the American Indian scholarship program under Minnesota
Statutes, section 124D.84, is transferred from the Department of Education to the
Minnesota Office of Higher Education. The director of the Minnesota Office of Higher
Education must contract with at least one knowledgeable person residing in or near the
city of Bemidji to assist students with the scholarships under Minnesota Statutes, section
124D.84, subdivision 1, and with other information about financial aid for which the
students may be eligible. Bemidji State University must provide office space at no cost to
the Minnesota Office of Higher Education for purposes of administering the American
Indian scholarship program under Minnesota Statutes, section 124D.84.
new text end

Sec. 43. new text begin WORLD LANGUAGES RESOURCES.
new text end

new text begin (a) The commissioner of education shall employ a full-time state coordinator for
world languages education within the department by July 1, 2007. The commissioner shall
seek advice from the quality teaching network before assigning or hiring the coordinator.
The coordinator, at a minimum, shall:
new text end

new text begin (1) assist charter schools and school districts in planning to develop or enhance their
capacity to offer world languages courses and programs;
new text end

new text begin (2) collaborate with Minnesota world languages professionals and charter schools
and school districts and continuously seek their advice in developing all aspects of world
languages programs;
new text end

new text begin (3) survey Minnesota charter schools and school districts to (i) determine the types
of existing world languages programs including, among others, those that use information
technology to provide high-quality world languages instruction, (ii) identify exemplary
model world languages programs, and (iii) identify and address staff development needs of
current world languages teachers, preservice teachers, and teacher preparation programs;
new text end

new text begin (4) identify successful world languages programs in other states;
new text end

new text begin (5) consult with interested stakeholders to prepare a report for the commissioner of
education to submit by February 15, 2008, to the education policy and finance committees
of the legislature assessing the feasibility and structure of a statewide world languages
graduation requirement under Minnesota Statutes, section 120B.021, subdivision 1; and
new text end

new text begin (6) beginning February 1, 2008, and until February 1, 2012, report annually to the
education policy and finance committees of the legislature on the status of world languages
in Minnesota and the programmatic needs identified by charter school and school district
surveys, and make recommendations on how to address the identified needs.
new text end

new text begin (b) After carefully examining existing world languages assessments, including
among other considerations the ease or difficulty with which the assessments may be
adapted to world languages not currently assessed, the commissioner, by July 1, 2009,
shall recommend an assessment tool for charter schools and school districts to use in
measuring student progress in acquiring proficiency in world languages.
new text end

new text begin (c) The commissioner, upon request, must evaluate the plans of charter schools and
school districts to develop or enhance their capacity to offer world languages courses
and programs and continue to offer technical assistance to districts in developing or
enhancing world languages programs. The department shall assist districts in monitoring
local assessment results.
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. 44. new text begin APPROPRIATIONS.
new text end

new text begin Subdivision 1. new text end

new text begin Minnesota Office of Higher Education. new text end

new text begin The sums indicated in
this section are appropriated from the general fund to the Minnesota Office of Higher
Education for the fiscal years designated.
new text end

new text begin Subd. 2. new text end

new text begin American Indian scholarships. new text end

new text begin For American Indian scholarships under
Minnesota Statutes, section 124D.84:
new text end

	new text begin $ new text end	new text begin 1,950,000 new text end	new text begin ..... new text end	new text begin 2008 new text end
	new text begin $ new text end	new text begin 1,950,000 new text end	new text begin ..... new text end	new text begin 2009 new text end

new text begin Of this appropriation, $75,000 each year is for administration under section 42.
new text end

Sec. 45. new text begin APPROPRIATIONS.
new text end

new text begin Subdivision 1. new text end

new text begin Board of Regents of the University of Minnesota. new text end

new text begin The sums
indicated in this section are appropriated from the general fund to the Board of Regents of
the University of Minnesota for the fiscal years designated.
new text end

new text begin Subd. 2. new text end

new text begin Independent Office of Educational Accountability. new text end

new text begin For the Independent
Office of Educational Accountability under Minnesota Statutes, section 120B.31,
subdivision 3:
new text end

	new text begin $ new text end	new text begin 200,000 new text end	new text begin ..... new text end	new text begin 2008 new text end
	new text begin $ new text end	new text begin 200,000 new text end	new text begin ..... new text end	new text begin 2009 new text end

new text begin This is a onetime appropriation.
new text end

Sec. 46. new text begin APPROPRIATIONS.
new text end

new text begin Subdivision 1. new text end

new text begin Department. new text end

new text begin The sums indicated in this section are appropriated
from the general fund to the Department of Education for the fiscal years designated.
new text end

new text begin Subd. 2. new text end

new text begin Charter school building lease aid. new text end

new text begin For building lease aid under Minnesota
Statutes, section 124D.11, subdivision 4:
new text end

	new text begin $ new text end	new text begin 31,875,000 new text end	new text begin ..... new text end	new text begin 2008 new text end
	new text begin $ new text end	new text begin 36,193,000 new text end	new text begin ..... new text end	new text begin 2009 new text end

new text begin The 2008 appropriation includes $2,814,000 for 2007 and $29,061,000 for 2008.
new text end

new text begin The 2009 appropriation includes $3,229,000 for 2008 and $32,964,000 for 2009.
new text end

new text begin Subd. 3. new text end

new text begin Charter school startup cost aid. new text end

new text begin For charter school startup cost aid
under Minnesota Statutes, section 124D.11:
new text end

	new text begin $ new text end	new text begin 1,896,000 new text end	new text begin ..... new text end	new text begin 2008 new text end
	new text begin $ new text end	new text begin 2,161,000 new text end	new text begin ..... new text end	new text begin 2009 new text end

new text begin The 2008 appropriation includes $241,000 for 2007 and $1,655,000 for 2008.
new text end

new text begin The 2009 appropriation includes $183,000 for 2008 and $1,978,000 for 2009.
new text end

new text begin Subd. 4. new text end

new text begin Integration aid. new text end

new text begin For integration aid under Minnesota Statutes, section
124D.86, subdivision 5:
new text end

	new text begin $ new text end	new text begin 61,769,000 new text end	new text begin ..... new text end	new text begin 2008 new text end
	new text begin $ new text end	new text begin 61,000,000 new text end	new text begin ..... new text end	new text begin 2009 new text end

new text begin The 2008 appropriation includes $5,824,000 for 2007 and $55,945,000 for 2008.
new text end

new text begin The 2009 appropriation includes $6,216,000 for 2008 and $54,784,000 for 2009.
new text end

new text begin Subd. 5. new text end

new text begin Magnet school program grants. new text end

new text begin For magnet school program grants:
new text end

	new text begin $ new text end	new text begin 750,000 new text end	new text begin ..... new text end	new text begin 2008 new text end
	new text begin $ new text end	new text begin 750,000 new text end	new text begin ..... new text end	new text begin 2009 new text end

new text begin These amounts may be used for magnet school programs under Minnesota Statutes,
section 124D.871.
new text end

new text begin Up to $100,000 each year is available for site-based decision-making grant proposals
that meet the goals outlined in section 124D.871 under Minnesota Statutes, section
123B.04, subdivision 2, paragraph (g).
new text end

new text begin Any balance in the first year does not cancel but is available in the second year.
new text end

new text begin Subd. 6. new text end

new text begin Interdistrict desegregation or integration transportation grants. new text end

new text begin For
interdistrict desegregation or integration transportation grants under Minnesota Statutes,
section 124D.87:
new text end

	new text begin $ new text end	new text begin 9,639,000 new text end	new text begin ..... new text end	new text begin 2008 new text end
	new text begin $ new text end	new text begin 11,567,000 new text end	new text begin ..... new text end	new text begin 2009 new text end

new text begin Subd. 7. new text end

new text begin Success for the future. new text end

new text begin For American Indian success for the future grants
under Minnesota Statutes, section 124D.81:
new text end

	new text begin $ new text end	new text begin 2,137,000 new text end	new text begin ..... new text end	new text begin 2008 new text end
	new text begin $ new text end	new text begin 2,137,000 new text end	new text begin ..... new text end	new text begin 2009 new text end

new text begin The 2008 appropriation includes $213,000 for 2007 and $1,924,000 for 2008.
new text end

new text begin The 2009 appropriation includes $213,000 for 2008 and $1,924,000 for 2009.
new text end

new text begin Subd. 8. new text end

new text begin American Indian teacher preparation grants. new text end

new text begin For joint grants to assist
American Indians to become teachers under Minnesota Statutes, section 122A.63:
new text end

	new text begin $ new text end	new text begin 190,000 new text end	new text begin ..... new text end	new text begin 2008 new text end
	new text begin $ new text end	new text begin 190,000 new text end	new text begin ..... new text end	new text begin 2009 new text end

new text begin Subd. 9. new text end

new text begin Tribal contract schools. new text end

new text begin For tribal contract school aid under Minnesota
Statutes, section 124D.83:
new text end

	new text begin $ new text end	new text begin 2,238,000 new text end	new text begin ..... new text end	new text begin 2008 new text end
	new text begin $ new text end	new text begin 2,422,000 new text end	new text begin ..... new text end	new text begin 2009 new text end

new text begin The 2008 appropriation includes $204,000 for 2007 and $2,034,000 for 2008.
new text end

new text begin The 2009 appropriation includes $226,000 for 2008 and $2,196,000 for 2009.
new text end

new text begin Subd. 10. new text end

new text begin Early childhood programs at tribal schools. new text end

new text begin For early childhood
family education programs at tribal contract schools under Minnesota Statutes, section
124D.83, subdivision 4:
new text end

	new text begin $ new text end	new text begin 68,000 new text end	new text begin ..... new text end	new text begin 2008 new text end
	new text begin $ new text end	new text begin 68,000 new text end	new text begin ..... new text end	new text begin 2009 new text end

new text begin Subd. 11. new text end

new text begin Statewide testing and reporting system. new text end

new text begin For the statewide testing and
reporting system under Minnesota Statutes, section 120B.30:
new text end

	new text begin $ new text end	new text begin 15,150,000 new text end	new text begin ..... new text end	new text begin 2008 new text end
	new text begin $ new text end	new text begin 15,150,000 new text end	new text begin ..... new text end	new text begin 2009 new text end

new text begin Any testing contracts awarded by the commissioner using appropriations in this
subdivision must include as part of that testing contract a method to vertically link testing
questions across grade levels for the purposes of working towards a statewide growth
model.
new text end

new text begin $1,150,000 each year is for the value-added index assessment model.
new text end

new text begin Any balance in the first year does not cancel but is available in the second year.
new text end

new text begin Subd. 12. new text end

new text begin Examination fees; teacher training and support programs. new text end

new text begin (a) For
students' advanced placement and international baccalaureate examination fees under
Minnesota Statutes, section 120B.13, subdivision 3, and the training and related costs
for teachers and other interested educators under Minnesota Statutes, section 120B.13,
subdivision 1:
new text end

	new text begin $ new text end	new text begin 4,500,000 new text end	new text begin ..... new text end	new text begin 2008 new text end
	new text begin $ new text end	new text begin 4,500,000 new text end	new text begin ..... new text end	new text begin 2009 new text end

new text begin (b) The advanced placement program shall receive 75 percent of the appropriation
each year and the international baccalaureate program shall receive 25 percent of the
appropriation each year. The department, in consultation with representatives of the
advanced placement and international baccalaureate programs selected by the Advanced
Placement Advisory Council and IBMN, respectively, shall determine the amounts of
the expenditures each year for examination fees and training and support programs for
each program.
new text end

new text begin (c) Notwithstanding Minnesota Statutes, section 120B.13, subdivision 1, at least
$500,000 each year is for teachers to attend subject matter summer training programs
and follow-up support workshops approved by the advanced placement or international
baccalaureate programs. The amount of the subsidy for each teacher attending an
advanced placement or international baccalaureate summer training program or workshop
shall be the same. The commissioner shall determine the payment process and the amount
of the subsidy.
new text end

new text begin (d) The commissioner shall pay all examination fees for all students of low-income
families under Minnesota Statutes, section 120B.13, subdivision 3, and to the extent of
available appropriations shall also pay examination fees for other students sitting for an
advanced placement examination, international baccalaureate examination, or both.
new text end

new text begin Any balance in the first year does not cancel but is available in the second year.
new text end

new text begin Subd. 13. new text end

new text begin Preadvanced placement, advanced placement, international
baccalaureate, and concurrent enrollment programs. new text end

new text begin For preadvanced placement,
advanced placement, international baccalaureate, and concurrent enrollment programs
under Minnesota Statutes, sections 120B.132 and 124D.091:
new text end

	new text begin $ new text end	new text begin 6,500,000 new text end	new text begin ..... new text end	new text begin 2008 new text end
	new text begin $ new text end	new text begin 6,500,000 new text end	new text begin ..... new text end	new text begin 2009 new text end

new text begin Of this amount, $2,500,000 each year is for concurrent enrollment program aid
under Minnesota Statutes, section 124D.091. If the appropriation is insufficient, the
commissioner must proportionately reduce the aid payment to each district.
new text end

new text begin The base appropriation for fiscal year 2010 and later is $2,000,000.
new text end

new text begin Subd. 14. new text end

new text begin Collaborative urban educator. new text end

new text begin For collaborative urban educator grants
under Minnesota Statutes, section 122A.641:
new text end

	new text begin $ new text end	new text begin 528,000 new text end	new text begin ..... new text end	new text begin 2008 new text end
	new text begin $ new text end	new text begin 528,000 new text end	new text begin ..... new text end	new text begin 2009 new text end

new text begin $210,000 each year is for the Southeast Asian teacher program at Concordia
University, St. Paul; $159,000 each year is for the collaborative urban educator program at
the University of St. Thomas; and $159,000 each year is for the Center for Excellence in
Urban Teaching at Hamline University. Grant recipients must collaborate with urban and
nonurban school districts.
new text end

new text begin Any balance in the first year does not cancel but is available in the second year.
new text end

new text begin Subd. 15. new text end

new text begin Youth works program. new text end

new text begin For funding youth works programs under
Minnesota Statutes, sections 124D.37 to 124D.45:
new text end

	new text begin $ new text end	new text begin 900,000 new text end	new text begin ..... new text end	new text begin 2008 new text end
	new text begin $ new text end	new text begin 900,000 new text end	new text begin ..... new text end	new text begin 2009 new text end

new text begin A grantee organization may provide health and child care coverage to the dependents
of each participant enrolled in a full-time youth works program to the extent the coverage
is not otherwise available.
new text end

new text begin Subd. 16. new text end

new text begin Early childhood literacy programs. new text end

new text begin For early childhood literacy
programs under Minnesota Statutes, section 119A.50, subdivision 3:
new text end

	new text begin $ new text end	new text begin 1,500,000 new text end	new text begin ..... new text end	new text begin 2008 new text end
	new text begin $ new text end	new text begin 1,500,000 new text end	new text begin ..... new text end	new text begin 2009 new text end

new text begin $1,000,000 each year is for leveraging federal and private funding to support
AmeriCorps members serving in the Minnesota Reading Corps program established by
Serve Minnesota, including costs associated with the training and teaching of early literacy
skills to children age three to grade 3 and the evaluation of the impact of the program
under Minnesota Statutes, sections 124D.38, subdivision 2, and 124D.42, subdivision 6.
new text end

new text begin $500,000 each year is for words work grants for early childhood literacy allocated by
the commissioner under Minnesota Statutes, section 119A.50, subdivision 3, paragraph (a).
new text end

new text begin Any balance in the first year does not cancel but is available in the second year. The
base appropriation for fiscal year 2010 and later is $1,000,000.
new text end

new text begin Subd. 17. new text end

new text begin St. Croix River Education District. new text end

new text begin For a grant to the St. Croix River
Education District:
new text end

	new text begin $ new text end	new text begin 500,000 new text end	new text begin ..... new text end	new text begin 2008 new text end
	new text begin $ new text end	new text begin 500,000 new text end	new text begin ..... new text end	new text begin 2009 new text end

new text begin These funds must be used to:
new text end

new text begin (1) deliver standardized research-based professional development in
problem-solving, including response to intervention, scientifically based reading
instruction, and standards-aligned instruction and assessment;
new text end

new text begin (2) provide coaching to targeted districts throughout the state;
new text end

new text begin (3) deliver large scale training throughout the state;
new text end

new text begin (4) provide ongoing technical assistance to schools;
new text end

new text begin (5) assist with implementing professional development content into higher education
instructional curricula; and
new text end

new text begin (6) evaluate the effectiveness of project activities.
new text end

new text begin This is a onetime appropriation.
new text end

new text begin Subd. 18. new text end

new text begin Student organizations. new text end

new text begin For student organizations:
new text end

	new text begin $ new text end	new text begin 725,000 new text end	new text begin ..... new text end	new text begin 2008 new text end
	new text begin $ new text end	new text begin 725,000 new text end	new text begin ..... new text end	new text begin 2009 new text end

new text begin $40,000 each year is for student organizations serving health occupations.
new text end

new text begin $38,000 each year is for student organizations serving service occupations.
new text end

new text begin $88,000 each year is for student organizations serving trade and industry occupations.
new text end

new text begin $84,000 each year is for student organizations serving business occupations.
new text end

new text begin $131,000 each year is for student organizations serving agriculture occupations.
new text end

new text begin $125,000 each year is for student organizations serving family and consumer science
occupations.
new text end

new text begin $95,000 each year is for student organizations serving marketing occupations.
new text end

new text begin Any balance in the first year does not cancel but is available in the second year.
new text end

new text begin Subd. 19. new text end

new text begin Educational Planning and Assessment System (EPAS) program.
new text end

new text begin For the Educational Planning and Assessment System (EPAS) program under Minnesota
Statutes, section 120B.128:
new text end

	new text begin $ new text end	new text begin 829,000 new text end	new text begin ..... new text end	new text begin 2008 new text end
	new text begin $ new text end	new text begin 829,000 new text end	new text begin ..... new text end	new text begin 2009 new text end

new text begin Any balance in the first year does not cancel but is available in the second year.
new text end

new text begin Subd. 20. new text end

new text begin College-level examination program (CLEP). new text end

new text begin For the college-level
examination program (CLEP) under Minnesota Statutes, section 120B.131:
new text end

	new text begin $ new text end	new text begin 1,650,000 new text end	new text begin ..... new text end	new text begin 2008 new text end
	new text begin $ new text end	new text begin 1,650,000 new text end	new text begin ..... new text end	new text begin 2009 new text end

new text begin Any balance in the first year does not cancel but is available in the second year.
new text end

new text begin Subd. 21. new text end

new text begin World Languages grants. new text end

new text begin For World Languages grants:
new text end

	new text begin $ new text end	new text begin 250,000 new text end	new text begin ..... new text end	new text begin 2008 new text end
	new text begin $ new text end	new text begin 250,000 new text end	new text begin ..... new text end	new text begin 2009 new text end

new text begin Any balance in the first year does not cancel but is available in the second year.
This is a onetime appropriation.
new text end

new text begin Subd. 22. new text end

new text begin National Board for Professional Teaching Standards. new text end

new text begin (a) For
professional teacher licensure:
new text end

	new text begin $ new text end	new text begin 250,000 new text end	new text begin ..... new text end	new text begin 2008 new text end
	new text begin $ new text end	new text begin 250,000 new text end	new text begin ..... new text end	new text begin 2009 new text end

new text begin (b) $63,000 of this amount is for grants of $1,000 each to eligible teachers accepted
as candidates for National Board for Professional Teaching Standards certification
according to Minnesota Statutes, section 122A.73, subdivision 4, paragraph (a). The grant
award shall be made to the national board.
new text end

new text begin (c) $125,000 of this amount is for grants of $2,000 each to eligible teachers
according to Minnesota Statutes, section 122A.73, subdivision 4, paragraph (b).
new text end

new text begin (d) $62,000 of this amount is for grants of up to $1,000 each to eligible teachers who
have received National Board for Professional Teaching Standards certification according
to Minnesota Statutes, section 122A.73, subdivision 4, paragraph (c).
new text end

new text begin (e) Any balance in the first year does not cancel but is available in the second year.
new text end

new text begin (f) This is a onetime appropriation.
new text end

new text begin Subd. 23. new text end

new text begin Mathematics and science; teacher centers. new text end

new text begin For teacher centers for
mathematics and science teacher development:
new text end

	new text begin $ new text end	new text begin 1,500,000 new text end	new text begin ..... new text end	new text begin 2008 new text end
	new text begin $ new text end	new text begin 1,500,000 new text end	new text begin ..... new text end	new text begin 2009 new text end

new text begin Any balance in the first year does not cancel but is available in the second year.
new text end

new text begin This is a onetime appropriation.
new text end

new text begin Subd. 24. new text end

new text begin First Grade Preparedness. new text end

new text begin For first grade preparedness grants under
Minnesota Statutes, section 124D.081:
new text end

	new text begin $ new text end	new text begin 7,250,000 new text end	new text begin ..... new text end	new text begin 2008 new text end
	new text begin $ new text end	new text begin 7,250,000 new text end	new text begin ..... new text end	new text begin 2009 new text end

new text begin This is a onetime appropriation.
new text end

new text begin Subd. 25. new text end

new text begin Statewide science, technology, engineering, and math initiative.
new text end

new text begin For a grant to the Science Museum of Minnesota for the statewide science, technology,
engineering, and math initiative:
new text end

	new text begin $ new text end	new text begin 1,500,000 new text end	new text begin ..... new text end	new text begin 2008 new text end
	new text begin $ new text end	new text begin 1,500,000 new text end	new text begin ..... new text end	new text begin 2009 new text end

new text begin Of this amount, $750,000 each year is available for the teacher resource center
and other related programs and $750,000 each year is available for the expansion and
support of the middle school math and science initiative, including teacher workshops and
expanded outreach programs in classrooms. This grant includes funding for an evaluation
of the programs by an entity approved by the Department of Education.
new text end

new text begin This is a onetime appropriation.
new text end

Sec. 47. new text begin REVISOR'S INSTRUCTION.
new text end

new text begin (a) The revisor of statutes shall renumber Minnesota Statutes, section 124D.84
to section 136A.126, correct cross-references, and make other necessary corrections to
implement section 41.
new text end

new text begin (b) 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. 48. new text begin REPEALER.
new text end

new text begin Minnesota Statutes 2006, sections 120B.233; and 124D.62, new text end new text begin are repealed.
new text end

ARTICLE 3

SPECIAL PROGRAMS

Section 1.

Minnesota Statutes 2006, section 123B.92, subdivision 1, is amended to read:

Subdivision 1.

Definitions.

For purposes of this section and section 125A.76, the
terms defined in this subdivision have the meanings given to them.

(a) "Actual expenditure per pupil transported in the regular and excess transportation
categories" means the quotient obtained by dividing:

(1) the sum of:

(i) all expenditures for transportation in the regular category, as defined in paragraph
(b), clause (1), and the excess category, as defined in paragraph (b), clause (2), plus

(ii) an amount equal to one year's depreciation on the district's school bus fleet
and mobile units computed on a straight line basis at the rate of 15 percent per year for
districts operating a program under section 124D.128 for grades 1 to 12 for all students in
the district and 12-1/2 percent per year for other districts of the cost of the fleet, plus

(iii) an amount equal to one year's depreciation on the district's type three school
buses, as defined in section 169.01, subdivision 6, clause (5), which must be used a
majority of the time for pupil transportation purposes, computed on a straight line basis at
the rate of 20 percent per year of the cost of the type three school buses by:

(2) the number of pupils eligible for transportation in the regular category, as defined
in paragraph (b), clause (1), and the excess category, as defined in paragraph (b), clause (2).

(b) "Transportation category" means a category of transportation service provided to
pupils as follows:

(1) Regular transportation is:

(i) transportation to and from school during the regular school year for resident
elementary pupils residing one mile or more from the public or nonpublic school they
attend, and resident secondary pupils residing two miles or more from the public
or nonpublic school they attend, excluding desegregation transportation and noon
kindergarten transportation; but with respect to transportation of pupils to and from
nonpublic schools, only to the extent permitted by sections 123B.84 to 123B.87;

(ii) transportation of resident pupils to and from language immersion programs;

(iii) transportation of a pupil who is a custodial parent and that pupil's child between
the pupil's home and the child care provider and between the provider and the school, if
the home and provider are within the attendance area of the school;

(iv) transportation to and from or board and lodging in another district, of resident
pupils of a district without a secondary school; and

(v) transportation to and from school during the regular school year required under
subdivision 3 for nonresident elementary pupils when the distance from the attendance
area border to the public school is one mile or more, and for nonresident secondary pupils
when the distance from the attendance area border to the public school is two miles or
more, excluding desegregation transportation and noon kindergarten transportation.

For the purposes of this paragraph, a district may designate a licensed day care
facility, school day care facility, respite care facility, the residence of a relative, or the
residence of a person chosen by the pupil's parent or guardian as the home of a pupil for
part or all of the day, if requested by the pupil's parent or guardian, and if that facility or
residence is within the attendance area of the school the pupil attends.

(2) Excess transportation is:

(i) transportation to and from school during the regular school year for resident
secondary pupils residing at least one mile but less than two miles from the public or
nonpublic school they attend, and transportation to and from school for resident pupils
residing less than one mile from school who are transported because of extraordinary
traffic, drug, or crime hazards; and

(ii) transportation to and from school during the regular school year required under
subdivision 3 for nonresident secondary pupils when the distance from the attendance area
border to the school is at least one mile but less than two miles from the public school
they attend, and for nonresident pupils when the distance from the attendance area border
to the school is less than one mile from the school and who are transported because of
extraordinary traffic, drug, or crime hazards.

(3) Desegregation transportation is transportation within and outside of the district
during the regular school year of pupils to and from schools located outside their normal
attendance areas under a plan for desegregation mandated by the commissioner or under
court order.

(4) "Transportation services for pupils with disabilities" is:

(i) transportation of pupils with disabilities who cannot be transported on a regular
school bus between home or a respite care facility and school;

(ii) necessary transportation of pupils with disabilities from home or from school to
other buildings, including centers such as developmental achievement centers, hospitals,
and treatment centers where special instruction or services required by sections 125A.03
to 125A.24, 125A.26 to 125A.48, and 125A.65 are provided, within or outside the district
where services are provided;

(iii) necessary transportation for resident pupils with disabilities required by sections
125A.12, and 125A.26 to 125A.48;

(iv) board and lodging for pupils with disabilities in a district maintaining special
classes;

(v) transportation from one educational facility to another within the district for
resident pupils enrolled on a shared-time basis in educational programs, and necessary
transportation required by sections 125A.18, and 125A.26 to 125A.48, for resident pupils
with disabilities who are provided special instruction and services on a shared-time basis
or if resident pupils are not transported, the costs of necessary travel between public
and private schools or neutral instructional sites by essential personnel employed by the
district's program for children with a disability;

(vi) transportation for resident pupils with disabilities to and from board and lodging
facilities when the pupil is boarded and lodged for educational purposes; and

(vii) services described in clauses (i) to (vi), when provided for pupils with
disabilities in conjunction with a summer instructional program that relates to the pupil's
individual education plan or in conjunction with a learning year program established
under section 124D.128.

For purposes of computing special education deleted text begin base revenue deleted text end new text begin initial aid new text end under section
125A.76, subdivision 2, the cost of providing transportation for children with disabilities
includes (A) the additional cost of transporting a homeless student from a temporary
nonshelter home in another district to the school of origin, or a formerly homeless student
from a permanent home in another district to the school of origin but only through the end
of the academic year; and (B) depreciation on district-owned school buses purchased after
July 1, 2005, and used primarily for transportation of pupils with disabilities, calculated
according to paragraph (a), clauses (ii) and (iii). Depreciation costs included in the
disabled transportation category must be excluded in calculating the actual expenditure
per pupil transported in the regular and excess transportation categories according to
paragraph (a).

(5) "Nonpublic nonregular transportation" is:

(i) transportation from one educational facility to another within the district for
resident pupils enrolled on a shared-time basis in educational programs, excluding
transportation for nonpublic pupils with disabilities under clause (4);

(ii) transportation within district boundaries between a nonpublic school and a
public school or a neutral site for nonpublic school pupils who are provided pupil support
services pursuant to section 123B.44; and

(iii) late transportation home from school or between schools within a district for
nonpublic school pupils involved in after-school activities.

(c) "Mobile unit" means a vehicle or trailer designed to provide facilities for
educational programs and services, including diagnostic testing, guidance and counseling
services, and health services. A mobile unit located off nonpublic school premises is a
neutral site as defined in section 123B.41, subdivision 13.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for revenue for fiscal year 2008.
new text end

Sec. 2.

Minnesota Statutes 2006, section 124D.454, subdivision 2, is amended to read:

Subd. 2.

Definitions.

For the purposes of this section, the definitions in this
subdivision apply.

(a) deleted text begin "Base year" means the second fiscal year preceding the fiscal year for which
aid will be paid.
deleted text end

deleted text begin (b) deleted text end "Basic revenue" has the meaning given it in section 126C.10, subdivision 2.
For the purposes of computing basic revenue pursuant to this section, each child with a
disability shall be counted as prescribed in section 126C.05, subdivision 1.

deleted text begin (c) "Average daily membership" has the meaning given it in section .
deleted text end

deleted text begin (d) "Program growth factor" means for fiscal year 1998 and later.
deleted text end

deleted text begin (e) "Aid percentage factor" means 100 percent for fiscal year 2000 and later.
deleted text end

deleted text begin (f) deleted text end new text begin (b) new text end "Essential personnel" means a licensed teacher, licensed support services
staff person, paraprofessional providing direct services to students, or licensed personnel
under subdivision 12. This definition is not intended to change or modify the definition of
essential employee in chapter 179A.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for revenue for fiscal year 2008.
new text end

Sec. 3.

Minnesota Statutes 2006, section 124D.454, subdivision 3, is amended to read:

Subd. 3.

deleted text begin Base revenue deleted text end new text begin Initial aid new text end .

deleted text begin (a) deleted text end The transition-disabled program deleted text begin base revenue deleted text end
new text begin initial aid new text end equals the sum of the following amounts computed using deleted text begin base deleted text end new text begin current new text end year data:

(1) 68 percent of the salary of each essential licensed person or approved
paraprofessional who provides direct instructional services to students employed during
that fiscal year for services rendered in that district's transition program for children with a
disability;

(2) 47 percent of the costs of necessary equipment for transition programs for
children with a disability;

(3) 47 percent of the costs of necessary travel between instructional sites by transition
program teachers of children with a disability but not including travel to and from local,
regional, district, state, or national career and technical student organization meetings;

(4) 47 percent of the costs of necessary supplies for transition programs for children
with a disability but not to exceed an average of $47 in any one school year for each child
with a disability receiving these services;

(5) for transition programs for children with disabilities provided by a contract
approved by the commissioner with public, private, or voluntary agencies other than a
Minnesota school district or cooperative center, in place of programs provided by the
district, 52 percent of the difference between the amount of the contract and the basic
revenue of the district for that pupil for the fraction of the school day the pupil receives
services under the contract;

(6) for transition programs for children with disabilities provided by a contract
approved by the commissioner with public, private, or voluntary agencies other than a
Minnesota school district or cooperative center, that are supplementary to a full educational
program provided by the school district, 52 percent of the amount of the contract; and

(7) for a contract approved by the commissioner with another Minnesota school
district or cooperative center for vocational evaluation services for children with a
disability for children that are not yet enrolled in grade 12, 52 percent of the amount
of the contract.

deleted text begin (b) If requested by a school district for transition programs during the base year for
deleted text end deleted text begin less than the full school year, the commissioner may adjust the base revenue to reflect
deleted text end deleted text begin the expenditures that would have occurred during the base year had the program been
deleted text end deleted text begin operated for the full year.
deleted text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for revenue for fiscal year 2008.
new text end

Sec. 4.

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, new text begin calculated using the
resident district's average general education revenue and referendum equalization aid
per adjusted pupil unit excluding basic skills revenue, elementary sparsity revenue and
secondary sparsity revenue, new text end 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 deleted text begin . deleted text end deleted text begin general education revenue and referendum aid
attributable to a pupil must be deleted text end new text begin , new text end calculated using the resident district's average general
education revenue and referendum new text begin equalization new text end aid per adjusted pupil unit new text begin excluding
basic skills revenue, elementary sparsity revenue and secondary sparsity revenue and the
serving district's basic skills revenue, elementary sparsity revenue and secondary sparsity
revenue per adjusted pupil unit. Notwithstanding clauses (1) and (4), for pupils served by
a cooperative unit without a fiscal agent school district, the general education revenue and
referendum equalization aid attributable to a pupil must be calculated using the resident
district's average general education revenue and referendum equalization aid excluding
elementary sparsity revenue and secondary sparsity revenue new text end . 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 new text begin equalization new text end aid" means the sum
of the general education revenue according to section 126C.10, subdivision 1, excluding
alternative teacher compensation revenue, plus the referendum new text begin equalization new text end 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. 5.

Minnesota Statutes 2006, section 125A.13, is amended to read:

125A.13 SCHOOL OF PARENTS' CHOICE.

new text begin (a) new text end Nothing in this chapter must be construed as preventing parents of a child with a
disability from sending the child to a school of their choice, if they so elect, subject to
admission standards and policies adopted according to sections 125A.62 to 125A.64 and
125A.66 to 125A.73, and all other provisions of chapters 120A to 129C.

new text begin (b) The parent of a student with a disability not yet enrolled in kindergarten and not
open enrolled in a nonresident district may request that the resident district enter into a
tuition agreement with the nonresident district if:
new text end

new text begin (1) the child is enrolled in a Head Start program or a licensed child care setting in
the nonresident district; and
new text end

new text begin (2) the child can be served in the same setting as other children in the nonresident
district with the same level of disability.
new text end

Sec. 6.

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. 7.

Minnesota Statutes 2006, section 125A.63, is amended by adding a subdivision
to read:

new text begin Subd. 5. new text end

new text begin Statewide hearing loss early education intervention coordinator. new text end

new text begin (a)
The coordinator shall:
new text end

new text begin (1) collaborate with the early hearing detection and intervention coordinator for the
Department of Health, the director of the Department of Education Resource Center for
Deaf and Hard-of-Hearing, and the Department of Health Early Hearing Detection and
Intervention Advisory Council;
new text end

new text begin (2) coordinate and support Department of Education early hearing detection and
intervention teams;
new text end

new text begin (3) leverage resources by serving as a liaison between interagency early intervention
committees; part C coordinators from the Departments of Education, Health, and
Human Services; Department of Education regional low-incidence facilitators; service
coordinators from school districts; Minnesota children with special health needs in the
Department of Health; public health nurses; child find; Department of Human Services
Deaf and Hard-of-Hearing Services Division; and others as appropriate;
new text end

new text begin (4) identify, support, and promote culturally appropriate and evidence-based early
intervention practices for infants with hearing loss, and provide training, outreach, and use
of technology to increase consistency in statewide service provision;
new text end

new text begin (5) identify culturally appropriate specialized reliable and valid instruments to assess
and track the progress of children with hearing loss and promote their use;
new text end

new text begin (6) ensure that early childhood providers, parents, and members of the individual
family service and intervention plan are provided with child progress data resulting from
specialized assessments;
new text end

new text begin (7) educate early childhood providers and teachers of the deaf and hard-of-hearing
to use developmental data from specialized assessments to plan and adjust individual
family service plans; and
new text end

new text begin (8) make recommendations that would improve educational outcomes to the early
hearing detection and intervention committee, the commissioners of education and health,
the Minnesota Commission Serving Deaf and Hard-of-Hearing People, and the advisory
council of the Minnesota Department of Education Resource Center for the Deaf and
Hard-of-Hearing.
new text end

new text begin (b) The Department of Education must provide aggregate data regarding outcomes
of deaf and hard-of-hearing children who receive early intervention services within the
state in accordance with the state performance plan.
new text end

Sec. 8.

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. 9.

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 new text begin , including children
eligible for Part C, as defined in section 125A.02, subdivision 1, and section 125A.27,
subdivision 8, new text end 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.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for revenue for fiscal year 2008.
new text end

Sec. 10.

Minnesota Statutes 2006, section 125A.75, is amended by adding a
subdivision to read:

new text begin Subd. 9. new text end

new text begin Litigation costs; annual report. new text end

new text begin (a) By November 30 of each year,
a school district must annually report the district's special education litigation costs,
including attorney fees and costs of due process hearings, to the commissioner of
education, consistent with the Uniform Financial Accounting and Reporting Standards.
new text end

new text begin (b) By January 15 of each year, the commissioner shall report school district special
education litigation costs to the house of representatives and the senate committees having
jurisdiction over kindergarten through grade 12 education finance.
new text end

Sec. 11.

Minnesota Statutes 2006, section 125A.76, subdivision 1, is amended to read:

Subdivision 1.

Definitions.

For the purposes of this section, the definitions in this
subdivision apply.

(a) deleted text begin "Base year" for fiscal year 1998 and later fiscal years means the second fiscal
year preceding the fiscal year for which aid will be paid.
deleted text end

deleted text begin (b) deleted text end "Basic revenue" has the meaning given it in section 126C.10, subdivision 2.
For the purposes of computing basic revenue pursuant to this section, each child with a
disability shall be counted as prescribed in section 126C.05, subdivision 1.

deleted text begin (c) deleted text end new text begin (b) new text end "Essential personnel" means teachers, cultural liaisons, related services, and
support services staff providing direct services to students. Essential personnel may also
include special education paraprofessionals or clericals providing support to teachers and
students by preparing paperwork and making arrangements related to special education
compliance requirements, including parent meetings and individual education plans.

deleted text begin (d) deleted text end new text begin (c) new text end "Average daily membership" has the meaning given it in section 126C.05.

deleted text begin (e) deleted text end new text begin (d) new text end "Program growth factor" means 1.046 for fiscal year deleted text begin 2003, and 1.0 for fiscal
year 2004 deleted text end new text begin 2012 new text end and later.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for revenue for fiscal year 2008.
new text end

Sec. 12.

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

Subd. 2.

Special education deleted text begin base revenue deleted text end new text begin initial aid new text end .

deleted text begin (a) deleted text end The special education
deleted text begin base revenue deleted text end new text begin initial aid new text end equals the sum of the following amounts computed using deleted text begin base deleted text end
new text begin current new text end 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 this subdivision and subdivision 1, 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; deleted text begin and
deleted text end

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

new text begin (8) the district's transition-disabled program initial aid according to section
124D.454, subdivision 3 new text end .

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.

deleted text begin (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.
deleted text end

deleted text begin (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.
deleted text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for revenue for fiscal year 2008.
new text end

Sec. 13.

Minnesota Statutes 2006, section 125A.76, subdivision 4, is amended to read:

Subd. 4.

State total special education aid.

deleted text begin The state total special education aid
for fiscal year 2004 equals $530,642,000. deleted text end The state total special education aid deleted text begin for fiscal
year 2005 deleted text end equals deleted text begin $529,164,000 deleted text end new text begin $529,247,000 for fiscal year 2007, $694,063,000 for
fiscal year 2008, $719,470,000 for fiscal year 2009, $735,693,000 for fiscal year 2010,
and $786,586,000 for fiscal year 2011 new text end . The state total special education aid for later
fiscal years equals:

(1) the state total special education aid for the preceding fiscal year; times

(2) the program growth factor; times

(3) the greater of one, or the ratio of the state total average daily membership for the
current fiscal year to the state total average daily membership for the preceding fiscal year.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for revenue for fiscal year 2008.
new text end

Sec. 14.

Minnesota Statutes 2006, section 125A.76, subdivision 5, is amended to read:

Subd. 5.

School district special education aid.

deleted text begin (a) deleted text end A school district's special
education aid for fiscal year deleted text begin 2000 deleted text end new text begin 2008 new text end and later equals the state total special education
aid deleted text begin , minus the amount determined under paragraphs (b) and (c), deleted text end times the ratio of the
district's deleted text begin adjusted deleted text end new text begin initial new text end special education deleted text begin base revenue deleted text end new text begin aid new text end to the state total deleted text begin adjusted deleted text end
new text begin initial new text end special education deleted text begin base revenue deleted text end new text begin aid new text end . deleted text begin If the commissioner of education modifies
its rules for special education in a manner that increases a district's special education
obligations or service requirements, the commissioner shall annually increase each
district's special education aid by the amount necessary to compensate for the increased
service requirements. The additional aid equals the cost in the current year attributable to
rule changes not reflected in the computation of special education base revenue, multiplied
by the appropriate percentages from subdivision 2.
deleted text end

deleted text begin (b) Notwithstanding paragraph (a), if the special education base revenue for a
district equals zero, the special education aid equals the amount computed according
to subdivision 2 using current year data.
deleted text end

deleted text begin (c) Notwithstanding paragraphs (a) and (b), if the special education base revenue for
a district is greater than zero, and the base year amount for the district under subdivision
2, paragraph (a), clause (7), equals zero, the special education aid equals the sum of the
amount computed according to paragraph (a), plus the amount computed according to
subdivision 2, paragraph (a), clause (7), using current year data.
deleted text end

deleted text begin (d) A charter school under section shall generate state special education
aid based on current year expenditures for its first four years of operation and only in its
fifth and later years shall paragraphs (a), (b), and (c) apply.
deleted text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for revenue for fiscal year 2008.
new text end

Sec. 15.

Minnesota Statutes 2006, section 125A.76, is amended by adding a
subdivision to read:

new text begin Subd. 8. new text end

new text begin Special education forecast maintenance of effort. new text end

new text begin (a) If, on the basis of
a forecast of general fund revenues and expenditures under section 16A.103, the state's
expenditures for special education and related services for children with disabilities
from nonfederal sources for a fiscal year, including special education aid under section
125A.76; special education excess cost aid under section 125A.76, subdivision 7; travel
for home-based services under section 125A.75, subdivision 1; aid for students with
disabilities under section 125A.75, subdivision 3; court-placed special education under
section 125A.79, subdivision 4; out-of-state tuition under section 125A.79, subdivision 8;
and direct expenditures by state agencies are projected to be less than the amount required
to meet federal special education maintenance of effort, the additional amount required
to meet federal special education maintenance of effort is added to the state total special
education aid in section 125A.76, subdivision 4.
new text end

new text begin (b) If, on the basis of a forecast of general fund revenues and expenditures under
section 16A.103, expenditures in the programs in paragraph (a) are projected to be greater
than previously forecast for an enacted budget, and an addition to state total special
education aid has been made under paragraph (a), the state total special education aid
must be reduced by the lesser of the amount of the expenditure increase or the amount
previously added to state total special education aid in section 125A.76, subdivision 4.
new text end

new text begin (c) For the purpose of this section, "previously forecast for an enacted budget" means
the allocation of funding for these programs in the most recent forecast of general fund
revenues and expenditures or the act appropriating money for these programs, whichever
occurred most recently. It does not include planning estimates for a future biennium.
new text end

new text begin (d) If the amount of special education aid is adjusted in accordance with this
subdivision, the commissioner of education shall notify the chairs of the legislative
committees having jurisdiction over kindergarten through grade 12 education regarding
the amount of the adjustment and provide an explanation of the federal maintenance of
effort requirements.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for fiscal year 2008.
new text end

Sec. 16.

Minnesota Statutes 2006, section 125A.78, is amended to read:

125A.78 ALTERNATIVE DELIVERY deleted text begin BASE REVENUE deleted text end new text begin INITIAL AID
new text end ADJUSTMENT.

Subdivision 1.

Eligibility.

A district is eligible for an alternative delivery deleted text begin base
revenue deleted text end new text begin initial aid new text end adjustment if the commissioner has approved the application of the
district according to section 125A.50.

Subd. 2.

deleted text begin Base revenue deleted text end new text begin Initial aid new text end adjustment.

For the deleted text begin third deleted text end fiscal year after
approval of a district's application, and thereafter, the special education deleted text begin base revenue deleted text end new text begin initial
aid new text end under section 125A.76, subdivision 1, must be computed based on activities defined as
reimbursable under Department of Education rules for special education and nonspecial
education students, and additional activities as detailed and approved by the commissioner.

Subd. 3.

Use of revenue.

Revenue under section 125A.76 shall be used to
implement the approved program.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for revenue for fiscal year 2008.
new text end

Sec. 17.

Minnesota Statutes 2006, section 125A.79, subdivision 1, is amended to read:

Subdivision 1.

Definitions.

For the purposes of this section, the definitions in this
subdivision apply.

(a) "Unreimbursed special education cost" means the sum of the following:

(1) expenditures for teachers' salaries, contracted services, supplies, equipment, and
transportation services eligible for revenue under section 125A.76; plus

(2) expenditures for tuition bills received under sections 125A.03 to 125A.24 and
125A.65 for services eligible for revenue under section 125A.76, subdivision 2; minus

(3) revenue for teachers' salaries, contracted services, supplies, deleted text begin and deleted text end equipment new text begin , and
transportation services new text end under section 125A.76; minus

(4) tuition receipts under sections 125A.03 to 125A.24 and 125A.65 for services
eligible for revenue under section 125A.76, subdivision 2.

(b) "General revenue" means the sum of the general education revenue according to
section 126C.10, subdivision 1, excluding alternative teacher compensation revenue, plus
the total qualifying referendum revenue specified in paragraph (e) minus transportation
sparsity revenue minus total operating capital revenue.

(c) "Average daily membership" has the meaning given it in section 126C.05.

(d) "Program growth factor" means 1.02 for fiscal year deleted text begin 2003, and 1.0 for fiscal
year 2004 deleted text end new text begin 2012 new text end and later.

(e) "Total qualifying referendum revenue" means two-thirds of the district's total
referendum revenue as adjusted according to section 127A.47, subdivision 7, paragraphs
(a) to (c), for fiscal year 2006, one-third of the district's total referendum revenue for fiscal
year 2007, and none of the district's total referendum revenue for fiscal year 2008 and later.

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.

Minnesota Statutes 2006, section 125A.79, subdivision 5, is amended to read:

Subd. 5.

Initial excess cost aid.

For fiscal years deleted text begin 2002 deleted text end new text begin 2008 new text end and later, a district's
initial excess cost aid equals the deleted text begin greatest deleted text end new text begin greater new text end of:

(1) 75 percent of the difference between (i) the district's unreimbursed special
education cost and (ii) 4.36 percent of the district's general revenue; new text begin or
new text end

(2) deleted text begin 70 percent of the difference between (i) the increase in the district's unreimbursed
special education cost between the base year as defined in section 125A.76, subdivision 1,
and the current year and (ii) 1.6 percent of the district's general revenue; or deleted text end

deleted text begin (3) deleted text end zero.

Sec. 19.

Minnesota Statutes 2006, section 125A.79, subdivision 6, is amended to read:

Subd. 6.

State total special education excess cost aid.

The state total special
education excess cost aid deleted text begin for fiscal year 2005 deleted text end equals deleted text begin $91,811,000 deleted text end new text begin $104,700,000 for
fiscal year 2007, $110,641,000 for fiscal year 2008, $110,918,000 for fiscal year 2009,
$110,847,000 for fiscal year 2010, and $110,892,000 for fiscal year 2011 new text end . deleted text begin The state
total special education excess cost aid equals $103,600,000 for fiscal year 2006 and
$104,700,000 for fiscal year 2007. deleted text end The state total special education excess cost aid for
deleted text begin fiscal year 2008 and deleted text end later fiscal years equals:

(1) the state total special education excess cost aid for the preceding fiscal year; times

(2) the program growth factor; times

(3) the greater of one, or the ratio of the state total average daily membership for the
current fiscal year to the state total average daily membership for the preceding fiscal year.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for revenue for fiscal year 2008.
new text end

Sec. 20.

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 initial revenue attributable to the pupil new text end .

Sec. 21.

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. 22.

Laws 2006, chapter 263, article 3, section 15, is amended to read:

Sec. 15. SPECIAL EDUCATION TUITION BILLING FOR FISCAL YEARS
2006 deleted text begin AND deleted text end new text begin , new text end 2007 new text begin , AND 2008 new text end .

(a) Notwithstanding Minnesota Statutes, sections 125A.11, subdivision 1, paragraph
(a), and 127A.47, subdivision 7, paragraph (d), for fiscal year 2006 an intermediate
district, special education cooperative, or school district that served as an applicant
agency for a group of school districts for federal special education aids for fiscal year
2006 is not subject to the uniform special education tuition billing calculations, but may
instead continue to bill the resident school districts for the actual unreimbursed costs
of serving pupils with a disability as determined by the intermediate district new text begin , special
education cooperative, or school district new text end .

(b) Notwithstanding Minnesota Statutes, section 125A.11, subdivision 1, paragraph
(c), for fiscal year 2007 only, an deleted text begin applicant district deleted text end new text begin agency exempted from the uniform
special education tuition billing calculations for fiscal year 2006 under paragraph (a) new text end
may apply to the commissioner for deleted text begin a waiver deleted text end new text begin an exemption new text end from the uniform special
education tuition calculations and aid adjustments under Minnesota Statutes, sections
125A.11, subdivision 1, paragraph (b), and 127A.47, subdivision 7, paragraph (e). The
commissioner must grant the deleted text begin waiver deleted text end new text begin exemption new text end within 30 days of receiving the following
information from the intermediate district new text begin , special education cooperative, or school district new text end :

(1) a detailed description of the applicant district's methodology for calculating
special education tuition for fiscal years 2006 and 2007, as required by the applicant
district to recover the full cost of serving pupils with a disability;

(2) sufficient data to determine the total amount of special education tuition actually
charged for each student with a disability, as required by the applicant district to recover
the full cost of serving pupils with a disability in fiscal year 2006; and

(3) sufficient data to determine the amount that would have been charged for each
student for fiscal year 2006 using the uniform tuition billing methodology according
to Minnesota Statutes, sections 125A.11, subdivision 1, or 127A.47, subdivision 7,
as applicable.

new text begin (c) Notwithstanding Minnesota Statutes, section 125A.11, subdivision 1, paragraph
(c), for fiscal year 2008 only, an agency granted an exemption from the uniform special
education tuition billing calculations and aid adjustments for fiscal year 2007 under
paragraph (b) may apply to the commissioner for a one-year extension of the exemption
granted under paragraph (b). The commissioner must grant the extension within 30 days
of receiving the request.
new text end

new text begin (d) Notwithstanding Minnesota Statutes, section 125A.11, subdivision 1, paragraphs
(a) and (b), and section 127A.47, subdivision 7, paragraphs (d) and (e), for fiscal year 2007
only, a school district or charter school not eligible for a waiver under Minnesota Statutes,
section 125A.11, subdivision 1, paragraph (d), 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 Minnesota
Statutes, section 127A.47, subdivision 7, paragraph (d) or (e), as applicable.
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. 23. new text begin TASK FORCE TO COMPARE FEDERAL AND STATE SPECIAL
EDUCATION REQUIREMENTS.
new text end

new text begin Subdivision 1. new text end

new text begin Establishment; duties. new text end

new text begin A task force is established to recommend
which state laws and rules that exceed or expand upon minimum federal special education
requirements for providing special education programs and services to eligible students
should be amended to conform with minimum federal requirements. The commissioner
of the Bureau of Mediation Services under Minnesota Statutes, section 179.02, after
consulting with interested stakeholders, shall appoint a ten-member task force composed
of equal numbers of providers, advocates, regulators, consumers of special education
services, lawyers who practice in the field of special education and represent either parents
or school districts, special education teachers, and school officials. The commissioner must
convene the task force by August 1, 2007, which shall meet regularly and shall review the
January 25, 2006, report prepared by the Minnesota Department of Education Office of
Compliance and Assistance and other relevant studies and resources analyzing differences
between federal and state special education requirements. The terms and compensation of
task force members are governed by Minnesota Statutes, section 15.059, subdivision 6.
new text end

new text begin Subd. 2. new text end

new text begin Report. new text end

new text begin The task force must submit to the education policy and finance
committees of the legislature by February 15, 2008, a report that identifies and clearly
and concisely explains each provision in state law or rule that exceeds or expands upon
a minimum federal requirement contained in law or regulation for providing special
education programs and services to eligible students. The report also must recommend
which state provisions that exceed or expand upon a minimum federal requirement may
be amended to conform with minimum federal requirements. The task force expires
when it submits its report to the legislature.
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. 24. new text begin APPROPRIATIONS.
new text end

new text begin Subdivision 1. new text end

new text begin Department of Education. new text end

new text begin The sums indicated in this section are
appropriated from the general fund to the Department of Education for the fiscal years
designated.
new text end

new text begin Subd. 2. new text end

new text begin Special education; regular. new text end

new text begin For special education aid under Minnesota
Statutes, section 125A.75:
new text end

	new text begin $ new text end	new text begin 677,622,000 new text end	new text begin ..... new text end	new text begin 2008 new text end
	new text begin $ new text end	new text begin 716,929,000 new text end	new text begin ..... new text end	new text begin 2009 new text end

new text begin The 2008 appropriation includes $52,965,000 for 2007 and $624,657,000 for 2008.
new text end

new text begin The 2009 appropriation includes $69,406,000 for 2008 and $647,523,000 for 2009.
new text end

new text begin Subd. 3. new text end

new text begin Aid for children with disabilities. new text end

new text begin For aid under Minnesota Statutes,
section 125A.75, subdivision 3, for children with disabilities placed in residential facilities
within the district boundaries for whom no district of residence can be determined:
new text end

	new text begin $ new text end	new text begin 1,538,000 new text end	new text begin ..... new text end	new text begin 2008 new text end
	new text begin $ new text end	new text begin 1,729,000 new text end	new text begin ..... new text end	new text begin 2009 new text end

new text begin If the appropriation for either year is insufficient, the appropriation for the other
year is available.
new text end

new text begin Subd. 4. new text end

new text begin Travel for home-based services. new text end

new text begin For aid for teacher travel for home-based
services under Minnesota Statutes, section 125A.75, subdivision 1:
new text end

	new text begin $ new text end	new text begin 254,000 new text end	new text begin ..... new text end	new text begin 2008 new text end
	new text begin $ new text end	new text begin 284,000 new text end	new text begin ..... new text end	new text begin 2009 new text end

new text begin The 2008 appropriation includes $22,000 for 2007 and $232,000 for 2008.
new text end

new text begin The 2009 appropriation includes $25,000 for 2008 and $259,000 for 2009.
new text end

new text begin Subd. 5. new text end

new text begin Special education; excess costs. new text end

new text begin For excess cost aid under Minnesota
Statutes, section 125A.79, subdivision 7:
new text end

	new text begin $ new text end	new text begin 108,656,000 new text end	new text begin ..... new text end	new text begin 2008 new text end
	new text begin $ new text end	new text begin 110,826,000 new text end	new text begin ..... new text end	new text begin 2009 new text end

new text begin The 2008 appropriation includes $34,969,000 for 2007 and $73,687,000 for 2008.
new text end

new text begin The 2009 appropriation includes $36,954,000 for 2008 and $73,872,000 for 2009.
new text end

new text begin Subd. 6. new text end

new text begin Transition for disabled students. new text end

new text begin For aid for transition programs for
children with disabilities under Minnesota Statutes, section 124D.454:
new text end

new text begin $ new text end

new text begin 879,000 new text end

new text begin ..... new text end

new text begin 2008 new text end

new text begin The 2008 appropriation includes $879,000 for 2007 and $0 for 2008.
new text end

new text begin Subd. 7. new text end

new text begin Court-placed special education revenue. new text end

new text begin For reimbursing serving
school districts for unreimbursed eligible expenditures attributable to children placed in
the serving school district by court action under Minnesota Statutes, section 125A.79,
subdivision 4:
new text end

	new text begin $ new text end	new text begin 72,000 new text end	new text begin ..... new text end	new text begin 2008 new text end
	new text begin $ new text end	new text begin 74,000 new text end	new text begin ..... new text end	new text begin 2009 new text end

new text begin Subd. 8. new text end

new text begin Special education out-of-state tuition. new text end

new text begin For special education out-of-state
tuition according to Minnesota Statutes, section 125A.79, subdivision 8:
new text end

	new text begin $ new text end	new text begin 250,000 new text end	new text begin ..... new text end	new text begin 2008 new text end
	new text begin $ new text end	new text begin 250,000 new text end	new text begin ..... new text end	new text begin 2009 new text end

new text begin Subd. 9. new text end

new text begin Special Education Task Force. new text end

new text begin For the task force to compare federal
and state special education requirements:
new text end

new text begin $ new text end

new text begin 20,000 new text end

new text begin ..... new text end

new text begin 2008 new text end

new text begin This is a onetime appropriation.
new text end

Sec. 25. new text begin REPEALER.
new text end

new text begin (a) 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

new text begin (b) new text end new text begin Minnesota Statutes 2006, sections 124D.454, subdivisions 4, 5, 6, and 7; and
125A.76, subdivision 3, new text end new text begin are repealed effective for revenue for fiscal year 2008.
new text end

ARTICLE 4

FACILITIES AND TECHNOLOGY

Section 1.

Minnesota Statutes 2006, section 123A.44, is amended to read:

123A.44 CITATION.

Sections 123A.441 to 123A.446 may be cited as the "Cooperative deleted text begin Secondary deleted text end
Facilities Grant Act."

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 123A.441, is amended to read:

123A.441 POLICY AND PURPOSE.

Because of the rates of decline in school-aged population, population shifts and
economic changes that the state has experienced in recent years and anticipates in future
years, and because in some instances local districts have not, and will not be able to
provide the required construction funds through local property taxes, the purpose of the
cooperative deleted text begin secondary deleted text end facilities grant program is to provide an incentive to encourage
cooperation in making available to all deleted text begin secondary deleted text end students those educational programs,
services and facilities that are most efficiently and effectively provided by a cooperative
effort of deleted text begin several deleted text end school districts. The policy and purpose of sections 123A.442 to
123A.446 is to use the credit of the state, to a limited degree, to provide grants to
cooperating groups of districts to improve and expand the educational opportunities and
facilities available to their deleted text begin secondary deleted text end students.

new text begin EFFECTIVE DATE. new text end

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

Sec. 3.

Minnesota Statutes 2006, section 123A.442, is amended to read:

123A.442 APPROVAL AUTHORITY; APPLICATION FORMS.

Subdivision 1.

Approval by commissioner.

To the extent money is available, the
commissioner may approve projects from applications submitted under section 123A.443.
The grant money must be used only to acquire, construct, remodel or improve the building
or site of a cooperative deleted text begin secondary deleted text end facility under contracts to be entered into within 15
months after the date on which each grant is awarded.

Subd. 2.

Cooperation and combination.

Districts that new text begin have not already
consolidated and new text end receive a cooperative deleted text begin secondary deleted text end facilities grant deleted text begin after May 1, 1991, deleted text end shall:

(1) submit a new text begin consolidation new text end plan deleted text begin as set forth in deleted text end new text begin under new text end section for
approval by the deleted text begin State Board of Education before December 31, 1999, or deleted text end Department of
Education deleted text begin after December 30, 1999 deleted text end ; and

(2) hold a referendum on the question of deleted text begin combination deleted text end new text begin consolidation new text end no later than
four years after a grant is awarded under subdivision 1.

The districts are eligible for deleted text begin cooperation and combination deleted text end new text begin consolidation new text end revenue
under section deleted text begin 123A.39, subdivision 3 deleted text end new text begin 123A.485 new text end .

new text begin Subd. 3. new text end

new text begin Consolidated districts. new text end

new text begin A school district that has consolidated with
another school district since July 1, 1980, is eligible for a cooperative facilities grant.
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. 4.

Minnesota Statutes 2006, section 123A.443, is amended to read:

123A.443 GRANT APPLICATION PROCESS.

Subdivision 1.

Qualification.

Any group of districts new text begin or a consolidated district new text end
that meets the criteria required under subdivision 2 may apply for an incentive grant for
construction of a new deleted text begin secondary deleted text end facility or for remodeling and improving an existing
deleted text begin secondary deleted text end facility. A grant for new construction must not exceed the lesser of deleted text begin $5,000,000 deleted text end new text begin
$20,000,000 new text end or 75 percent of the approved construction costs of a cooperative deleted text begin secondary deleted text end
education facility. A grant for remodeling and improving an existing facility must not
exceed deleted text begin $200,000 deleted text end new text begin the lesser of $10,000,000, or 75 percent of the approved remodeling
costs new text end .

Subd. 2.

Review by commissioner.

(a) A group of districts new text begin or a consolidated district
new text end that submits an application for a grant must submit a proposal to the commissioner for
review and comment under section 123B.71. The commissioner shall prepare a review
and comment on the proposed facility by July 1 of an odd-numbered year, regardless of
the amount of the capital expenditure required to acquire, construct, remodel or improve
the deleted text begin secondary deleted text end facility. The commissioner shall not approve an application for an incentive
grant for any deleted text begin secondary deleted text end facility unless the facility receives a favorable review and
comment under section 123B.71 and the following criteria are met:

(1) new text begin the applicant is a consolidated district or new text end a minimum of two or more districts deleted text begin ,
with kindergarten to grade 12 enrollments in each district of no more than 1,200 pupils,
enter deleted text end new text begin that have entered new text end into a joint powers agreement;

(2) new text begin for a group of districts, new text end a joint powers board representing all participating
districts is established under section 471.59 to govern the cooperative deleted text begin secondary deleted text end facility;

deleted text begin (3) the planned secondary facility will result in the joint powers district meeting the
requirements of Minnesota Rules, parts 3500.2010 and 3500.2110;
deleted text end

deleted text begin (4) at least 198 pupils would be served in grades 10 to 12, 264 pupils would be
served in grades 9 to 12, or 396 pupils would be served in grades 7 to 12;
deleted text end

deleted text begin (5) deleted text end new text begin (3) for a group of districts, new text end no more than one superintendent is employed by the
joint powers board as a result of the cooperative deleted text begin secondary deleted text end facility agreement;

deleted text begin (6) deleted text end new text begin (4) new text end a statement of need is submitted, that may include reasons why the current
deleted text begin secondary deleted text end facilities are inadequate, unsafe or inaccessible to persons with disabilities;

deleted text begin (7) deleted text end new text begin (5) new text end an educational plan is prepared, that includes input from both community and
professional staff;

deleted text begin (8) deleted text end new text begin (6) for a group of districts, new text end a combined seniority list for all participating districts
is developed by the joint powers board;

deleted text begin (9) deleted text end new text begin (7) for a group of districts, new text end an education program is developed that provides for
more learning opportunities and course offerings, including the offering of advanced
placement courses, for students than is currently available in any single member district;

deleted text begin (10) deleted text end new text begin (8) new text end a plan is developed for providing instruction of any resident students in
other districts when distance to the deleted text begin secondary deleted text end education facility makes attendance at the
facility unreasonably difficult or impractical; and

deleted text begin (11) deleted text end new text begin (9) for a secondary facility, new text end the joint powers board established under clause (2)
discusses with technical colleges located in the area how vocational education space in
the cooperative deleted text begin secondary deleted text end facility could be jointly used for secondary and postsecondary
purposes.

(b) To the extent possible, the joint powers board is encouraged to provide for
severance pay or for early retirement incentives under section 122A.48, for any teacher
or administrator, as defined under section 122A.40, subdivision 1, who is placed on
unrequested leave as a result of the cooperative deleted text begin secondary deleted text end facility agreement.

(c) For the purpose of paragraph (a), clause deleted text begin (8) deleted text end new text begin (6) new text end , each district must be considered
to have started school each year on the same date.

(d) The districts may develop a plan that provides for the location of social service,
health, and other programs serving pupils and community residents within the cooperative
deleted text begin secondary deleted text end facility. The commissioner shall consider this plan when preparing a review
and comment on the proposed facility.

(e) The districts must schedule and conduct a meeting on library services. The
school districts, in cooperation with the regional public library system and its appropriate
member libraries, must discuss the possibility of including jointly operated library services
at the cooperative deleted text begin secondary deleted text end facility.

(f) The board of a district that has reorganized under section 123A.37 or 123A.48
and that is applying for a grant for remodeling or improving an existing facility may act in
the place of a joint powers board to meet the criteria of this subdivision.

Subd. 3.

Reorganizing districts.

A district that is a member of a joint powers
board established under subdivision 2 and that is planning to reorganize under section
123A.45, 123A.46, or 123A.48 must notify the joint powers board one year in advance of
the effective date of the reorganization. Notwithstanding section 471.59 or any other law
to the contrary, the board of a district that reorganizes under section 123A.45, 123A.46, or
123A.48 may appoint representatives to the joint powers board who will serve on the joint
powers board for two years after the effective date of the reorganization if authorized in
the agreement establishing the joint powers board to govern the cooperative deleted text begin secondary deleted text end
facility. These representatives shall have the same powers as representatives of any other
school district under the joint powers agreement.

Subd. 4.

District procedures.

A joint powers board of a deleted text begin secondary deleted text end district
established under subdivision 2 or a school board of a reorganized district that intends
to apply for a grant must adopt a resolution stating the proposed costs of the project,
the purpose for which the costs are to be incurred, and an estimate of the dates when
the facilities for which the grant is requested will be contracted for and completed.
Applications for the state grants must be accompanied by (a) a copy of the resolution, (b)
a certificate by the clerk and treasurer of the joint powers board showing the current
outstanding indebtedness of each member district, and (c) a certificate by the county
auditor of each county in which a portion of the joint powers district lies showing the
information in the auditor's official records that is required to be used in computing the
debt limit of the district under section 475.53, subdivision 4. The clerk's and treasurer's
certificate must show, as to each outstanding bond issue of each member district, the
amount originally issued, the purpose for which issued, the date of issue, the amount
remaining unpaid as of the date of the resolution, and the interest rates and due dates
and amounts of principal thereon. Applications and necessary data must be in the
form prescribed by the commissioner deleted text begin and the rules of the State Board of Education
before December 31, 1999, and after December 30, 1999, in the form prescribed by the
commissioner deleted text end . Applications must be received by the commissioner by September 1 of an
odd-numbered year. When an application is received, the commissioner shall obtain from
the commissioner of revenue, and from the Public Utilities Commission when required,
the information in their official records that is required to be used in computing the debt
limit of the joint powers district under section 475.53, subdivision 4.

Subd. 5.

Award of grants.

By November 1 of the odd-numbered year, the
commissioner shall examine and consider all applications for grants, and if any district is
found not qualified, the commissioner shall promptly notify that board.

A grant award is subject to verification by the district as specified in subdivision
8. A grant award for a new facility must not be made until the site of the deleted text begin secondary deleted text end
facility has been determined. A grant award to remodel or improve an existing facility
must not be made until the districts have reorganized. If the total amount of the approved
applications exceeds the amount that is or can be made available, the commissioner shall
new text begin first award grants to districts that will close at least one existing school building, and then,
to the extent funds remain, new text end allot the available amount equally between deleted text begin the deleted text end new text begin any other new text end
approved applicant districts. The commissioner shall promptly certify to each qualified
district the amount, if any, of the grant awarded to it.

Subd. 6.

Collocation grant.

A group of districts that receives a grant for a new
facility under subdivision 4 is also eligible to receive an additional grant in the amount of
$1,000,000. To receive the additional grant, the group of districts must develop a plan
under subdivision 2, paragraph (d), that provides for the location of a significant number
of noneducational student and community service programs within the cooperative
deleted text begin secondary deleted text end facility.

Subd. 7.

Referendum; bond issue.

Within 180 days after being awarded a grant
for a new facility under subdivision 5, the joint powers board must submit the question
of authorizing the borrowing of funds for the deleted text begin secondary deleted text end facility to the voters of the joint
powers district at a special election, which may be held in conjunction with the deleted text begin annual deleted text end new text begin
general new text end election of the school board members of the member districts. The question
submitted must state the total amount of funding needed from all sources. A majority of
those voting in the affirmative on the question is sufficient to authorize the joint powers
board to accept the grant and to issue the bonds on public sale deleted text begin in accordance with deleted text end new text begin
according to new text end chapter 475. The clerk of the joint powers board must certify the vote of
the bond election to the commissioner. If the question is approved by the voters, the
commissioner shall notify the approved applicant districts that the grant amount certified
under subdivision 5 is available and appropriated for payment under this subdivision.
If a majority of those voting on the question do not vote in the affirmative, the grant
must be canceled.

Subd. 8.

Contract.

Each grant must be evidenced by a contract between the board
and the state acting through the commissioner. The contract obligates the state to pay to
the board an amount computed according to subdivision 5, and according to a schedule,
and terms and conditions acceptable to the commissioner of finance.

Subd. 9.

Consolidation.

A group of districts that operates a cooperative deleted text begin secondary deleted text end
facility that was acquired, constructed, remodeled, or improved under this section and
implements consolidation proceedings according to section 123A.48, may propose a
temporary school board structure in the petition or resolution required under section
123A.48, subdivision 2. The districts may propose the number of existing school board
members of each district to become members of the board of the consolidated district
and a method to gradually reduce the membership to six or seven. The proposal must
be approved, disapproved, or modified by the deleted text begin state board of education deleted text end new text begin commissioner new text end .
The election requirements of section 123A.48, subdivision 20, do not apply to a
proposal approved by the state board. Elections conducted after the effective date of the
consolidation are subject to the Minnesota Election Law.

new text begin EFFECTIVE DATE. new text end

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

Sec. 5.

Minnesota Statutes 2006, section 123B.53, subdivision 1, is amended to read:

Subdivision 1.

Definitions.

(a) For purposes of this section, the eligible debt service
revenue of a district is defined as follows:

(1) the amount needed to produce between five and six percent in excess of the
amount needed to meet when due the principal and interest payments on the obligations
of the district for eligible projects according to subdivision 2, including the amounts
necessary for repayment of energy loans according to section 216C.37 or sections 298.292
to 298.298, debt service loans and capital loans, lease purchase payments under section
126C.40, subdivision 2, alternative facilities levies under section 123B.59, subdivision
5, new text begin paragraph (a), new text end minus

(2) the amount of debt service excess levy reduction for that school year calculated
according to the procedure established by the commissioner.

(b) The obligations in this paragraph are excluded from eligible debt service revenue:

(1) obligations under section 123B.61;

(2) the part of debt service principal and interest paid from the taconite environmental
protection fund or Douglas J. Johnson economic protection trust;

(3) obligations issued under Laws 1991, chapter 265, article 5, section 18, as
amended by Laws 1992, chapter 499, article 5, section 24; and

(4) obligations under section 123B.62.

(c) For purposes of this section, if a preexisting school district reorganized under
sections 123A.35 to 123A.43, 123A.46, and 123A.48 is solely responsible for retirement
of the preexisting district's bonded indebtedness, capital loans or debt service loans, debt
service equalization aid must be computed separately for each of the preexisting districts.

(d) For purposes of this section, the adjusted net tax capacity determined according
to section 127A.48 shall be adjusted to include deleted text begin a portion of deleted text end the tax capacity of property
generally exempted from ad valorem taxes under section 272.02, deleted text begin subdivisions deleted text end new text begin subdivision new text end
64 deleted text begin and 65, equal to the product of that tax capacity times the ratio of the eligible debt
service revenue attributed to general obligation bonds to the total eligible debt service
revenue of the district deleted text end .

Sec. 6.

Minnesota Statutes 2006, section 123B.54, is amended to read:

123B.54 DEBT SERVICE APPROPRIATION.

(a) deleted text begin $21,624,000 deleted text end new text begin $14,813,000 new text end in fiscal year 2008 deleted text begin and $20,403,000 deleted text end new text begin , $11,124,000 new text end in
fiscal year 2009 new text begin , $8,866,000 in fiscal year 2010, and $6,631,000 in fiscal year 2011 new text end and
later are appropriated from the general fund to the commissioner of education for payment
of debt service equalization aid under section 123B.53.

(b) The appropriations in paragraph (a) must be reduced by the amount of any
money specifically appropriated for the same purpose in any year from any state fund.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for revenue for fiscal year 2009.
new text end

Sec. 7.

Minnesota Statutes 2006, section 123B.57, subdivision 3, is amended to read:

Subd. 3.

Health and safety revenue.

A district's health and safety revenue
for a fiscal year equals new text begin the district's alternative facilities levy under section 123B.59,
subdivision 5, paragraph (b), plus the greater of zero or new text end :

(1) the sum of (a) the total approved cost of the district's hazardous substance
plan for fiscal years 1985 through 1989, plus (b) the total approved cost of the district's
health and safety program for fiscal year 1990 through the fiscal year to which the levy
is attributable, excluding expenditures funded with bonds issued under section 123B.59
or 123B.62, or chapter 475; certificates of indebtedness or capital notes under section
123B.61; levies under section 123B.58, 123B.59, 123B.63, or 126C.40, subdivision 1 or
6; and other federal, state, or local revenues, minus

(2) the sum of (a) the district's total hazardous substance aid and levy for fiscal years
1985 through 1989 under sections 124.245 and 275.125, subdivision 11c, plus (b) the
district's health and safety revenue under this subdivision, for years before the fiscal year
to which the levy is attributable.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for revenue for fiscal year 2009.
new text end

Sec. 8.

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.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2007, for elections conducted
on or after that day.
new text end

Sec. 9.

Minnesota Statutes 2006, section 128D.11, subdivision 3, is amended to read:

Subd. 3.

No election.

Subject to the provisions of subdivisions 7 to 10, the school
district may also by a two-thirds majority vote of all the members of its board of education
and without any election by the voters of the district, issue and sell in each calendar year
general obligation bonds of the district in an amount not to exceed 5-1/10 per cent of the
net tax capacity of the taxable property in the district (plus, for calendar years 1990 to
2003, an amount not to exceed $7,500,000, and for calendar years 2004 to deleted text begin 2008 deleted text end new text begin 2016 new text end an
amount not to exceed $15,000,000; with an additional provision that any amount of bonds
so authorized for sale in a specific year and not sold can be carried forward and sold in
the year immediately following).

new text begin EFFECTIVE DATE. new text end

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

Sec. 10.

Minnesota Statutes 2006, section 272.02, subdivision 64, is amended to read:

Subd. 64.

Job opportunity building zone property.

(a) Improvements to real
property, and personal property, classified under section 273.13, subdivision 24, and
located within a job opportunity building zone, designated under section 469.314, are
exempt from ad valorem taxes levied under chapter 275.

(b) Improvements to real property, and tangible personal property, of an agricultural
production facility located within an agricultural processing facility zone, designated
under section 469.314, is exempt from ad valorem taxes levied under chapter 275.

(c) For property to qualify for exemption under paragraph (a), the occupant must be
a qualified business, as defined in section 469.310.

(d) The exemption applies beginning for the first assessment year after designation
of the job opportunity building zone by the commissioner of employment and economic
development. The exemption applies to each assessment year that begins during the
duration of the job opportunity building zone. To be exempt, the property must be
occupied by July 1 of the assessment year by a qualified business that has signed the
business subsidy agreement and relocation agreement, if required, by July 1 of the
assessment year. This exemption does not apply to:

(1) the levy under section 475.61 or similar levy provisions under any other law to
pay general obligation bonds; or

(2) deleted text begin a levy under section 126C.17, if the levy was approved by the voters before the
designation of the job opportunity building zone deleted text end new text begin new text end new text begin other school district levies included in
the debt service levy of the district under section 123B.55 new text end .

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxes payable in 2008.
new text end

Sec. 11. new text begin SCHOOL TECHNOLOGY AND OPERATING CAPITAL AID.
new text end

new text begin For fiscal years 2008, and 2009 only, school technology and operating capital aid
equals $40 for fiscal year 2008 and $55 for fiscal year 2009 times the district's adjusted
marginal cost pupil units for that fiscal year. This aid must only be used for the purposes
of Minnesota Statutes, section 126C.10, subdivision 14.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for revenue for fiscal years 2008
and 2009.
new text end

Sec. 12. new text begin BONDING AUTHORIZATION.
new text end

new text begin To provide funds for the acquisition or betterment of school facilities, Independent
School District No. 625, St. Paul, may by two-thirds majority vote of all the members of
the board of directors issue general obligation bonds in one or more series for calendar
years 2008 through 2016, as provided in this section. The aggregate principal amount of
any bonds issued under this section for each calendar year must not exceed $15,000,000.
Issuance of the bonds is not subject to Minnesota Statutes, section 475.58 or 475.59.
The bonds must otherwise be issued as provided in Minnesota Statutes, chapter 475.
The authority to issue bonds under this section is in addition to any bonding authority
authorized by Minnesota Statutes, chapter 123B, or other law. The amount of bonding
authority authorized under this section must be disregarded in calculating the bonding
limit of Minnesota Statutes, chapter 123B, or any other law other than Minnesota Statutes,
section 475.53, subdivision 4.
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. 13. new text begin TAX LEVY FOR DEBT SERVICE.
new text end

new text begin To pay the principal of and interest on bonds issued under section 12, Independent
School District No. 625, St. Paul, must levy a tax annually in an amount sufficient
under Minnesota Statutes, section 475.61, subdivisions 1 and 3, to pay the principal of
and interest on the bonds. The tax authorized under this section is in addition to the
taxes authorized to be levied under Minnesota Statutes, chapter 123B, 124D, or 126C, or
other law.
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. 14. new text begin ADMINISTRATIVE LEASE LEVY; SPRING LAKE PARK.
new text end

new text begin Notwithstanding the instructional purposes limitation of Minnesota Statutes, section
126C.40, subdivision 1, Independent School District No. 16, Spring Lake Park, may
lease administrative space under Minnesota Statutes, section 126C.40, subdivision 1, if
the district can demonstrate to the satisfaction of the commissioner of education that
the administrative space is less expensive than instruction space that the district would
otherwise lease. A school district may not levy under this section for more than five years.
The commissioner must deny this levy authority unless the district passes a resolution
stating its intent to lease instructional space under Minnesota Statutes, section 126C.40,
subdivision 1, if the commissioner does not grant authority under this section. The
resolution must also certify that a lease of administrative space under this section is less
expensive than the district's proposed instructional lease. Levy authority under this section
shall not exceed the total levy authority under Minnesota Statutes, section 126C.40,
subdivision 1, paragraph (e).
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxes payable in 2008.
new text end

Sec. 15. new text begin HEALTH AND SAFETY REVENUE; CLEARBROOK-GONVICK.
new text end

new text begin Notwithstanding Minnesota Statutes, section 123B.57, Independent School District
No. 2311, Clearbrook-Gonvick, may use health and safety revenue for the demolition of
the Gonvick school building. The district must recognize the revenue under this section
in fiscal year 2008.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxes payable in 2008.
new text end

Sec. 16. new text begin APPROPRIATIONS.
new text end

new text begin Subdivision 1. new text end

new text begin Department of Education. new text end

new text begin The sums indicated in this section are
appropriated from the general fund to the Department of Education for the fiscal years
designated.
new text end

new text begin Subd. 2. new text end

new text begin Health and safety revenue. new text end

new text begin For health and safety aid according to
Minnesota Statutes, section 123B.57, subdivision 5:
new text end

	new text begin $ new text end	new text begin 190,000 new text end	new text begin ..... new text end	new text begin 2008 new text end
	new text begin $ new text end	new text begin 179,000 new text end	new text begin ..... new text end	new text begin 2009 new text end

new text begin The 2008 appropriation includes $20,000 for 2007 and $170,000 for 2008.
new text end

new text begin The 2009 appropriation includes $18,000 for 2008 and $161,000 for 2009.
new text end

new text begin Subd. 3. new text end

new text begin Debt service equalization. new text end

new text begin For debt service aid according to Minnesota
Statutes, section 123B.53, subdivision 6:
new text end

	new text begin $ new text end	new text begin 14,813,000 new text end	new text begin ..... new text end	new text begin 2008 new text end
	new text begin $ new text end	new text begin 11,124,000 new text end	new text begin ..... new text end	new text begin 2009 new text end

new text begin The 2008 appropriation includes $1,767,000 for 2007 and $13,046,000 for 2008.
new text end

new text begin The 2009 appropriation includes $1,450,000 for 2008 and $9,674,000 for 2009.
new text end

new text begin Subd. 4. new text end

new text begin Alternative facilities bonding aid. new text end

new text begin For alternative facilities bonding aid,
according to Minnesota Statutes, section 123B.59, subdivision 1:
new text end

	new text begin $ new text end	new text begin 19,287,000 new text end	new text begin ..... new text end	new text begin 2008 new text end
	new text begin $ new text end	new text begin 19,287,000 new text end	new text begin ..... new text end	new text begin 2009 new text end

new text begin The 2008 appropriation includes $1,928,000 for 2007 and $17,359,000 for 2008.
new text end

new text begin The 2009 appropriation includes $1,928,000 for 2008 and $17,359,000 for 2009.
new text end

new text begin Subd. 5. new text end

new text begin Equity in telecommunications access. new text end

new text begin For equity in telecommunications
access:
new text end

	new text begin $ new text end	new text begin 7,622,000 new text end	new text begin ..... new text end	new text begin 2008 new text end
	new text begin $ new text end	new text begin 8,743,000 new text end	new text begin ..... new text end	new text begin 2009 new text end

new text begin If the appropriation amount is insufficient, the commissioner shall reduce the
reimbursement rate in Minnesota Statutes, section 125B.26, subdivisions 4 and 5, and the
revenue for fiscal years 2008 and 2009 shall be prorated.
new text end

new text begin Any balance in the first year does not cancel but is available in the second year.
new text end

new text begin The base appropriation for fiscal year 2010 and later is $3,750,000.
new text end

new text begin Subd. 6. new text end

new text begin Deferred maintenance aid. new text end

new text begin For deferred maintenance aid, according to
Minnesota Statutes, section 123B.591, subdivision 4:
new text end

	new text begin $ new text end	new text begin 3,290,000 new text end	new text begin ..... new text end	new text begin 2008 new text end
	new text begin $ new text end	new text begin 2,667,000 new text end	new text begin ..... new text end	new text begin 2009 new text end

new text begin The 2008 appropriation includes $0 for 2007 and $3,290,000 for 2008.
new text end

new text begin The 2009 appropriation includes $365,000 for 2008 and $2,302,000 for 2009.
new text end

new text begin Subd. 7. new text end

new text begin Rocori school district. new text end

new text begin For Rocori, Independent School District No.
750, for Project Serv:
new text end

new text begin $ new text end

new text begin 53,000 new text end

new text begin ..... new text end

new text begin 2008 new text end

new text begin Subd. 8. new text end

new text begin School technology and operating capital aid grants. new text end

new text begin For school
technology and operating capital grants under section 11:
new text end

	new text begin $ new text end	new text begin 38,145,000 new text end	new text begin ..... new text end	new text begin 2008 new text end
	new text begin $ new text end	new text begin 52,676,000 new text end	new text begin ..... new text end	new text begin 2009 new text end

new text begin This is a onetime appropriation.
new text end

new text begin Subd. 9. new text end

new text begin Eden Valley-Watkins; environmental remediation. new text end

new text begin For a grant to
Independent School District No. 463, Eden Valley-Watkins, to recover the amount actually
spent on environmental remediation efforts related to the cleanup of a mercury spill.
new text end

new text begin $ new text end

new text begin 126,000 new text end

new text begin ..... new text end

new text begin 2008 new text end

ARTICLE 5

NUTRITION AND ACCOUNTING

Section 1.

Minnesota Statutes 2006, section 123B.10, subdivision 1, is amended to read:

Subdivision 1.

Budgets new text begin ; form of notification new text end .

new text begin (a) new text end Every board must publish revenue
and expenditure budgets for the current year and the actual revenues, expenditures, fund
balances for the prior year and projected fund balances for the current year in a form
prescribed by the commissioner within one week of the acceptance of the final audit by
the board, or November 30, whichever is earlier. The forms prescribed must be designed
so that year to year comparisons of revenue, expenditures and fund balances can be made.
deleted text begin These budgets, reports of revenue, expenditures and fund balances must be published in
a qualified newspaper of general circulation in the district or on the district's official
Web site. If published on the district's official Web site, the district must also publish an
announcement in a qualified newspaper of general circulation in the district that includes
the Internet address where the information has been posted.
deleted text end

new text begin (b) A school board annually must notify the public of its revenue, expenditures, fund
balances, and other relevant budget information. The board must include the budget
information required by this section in the materials provided as a part of its truth in
taxation hearing, post the materials in a conspicuous place on the district's official Web
site, including a link to the district's school report card on the Department of Education's
Web site, and publish the information in a qualified newspaper of general circulation
in the district.
new text end

Sec. 2.

Minnesota Statutes 2006, section 123B.77, subdivision 4, is amended to read:

Subd. 4.

Budget approval.

Prior to July 1 of each year, the board of each district
must approve and adopt its revenue and expenditure budgets for the next school year.
The budget document so adopted must be considered an expenditure-authorizing or
appropriations document. No funds shall be expended by any board or district for any
purpose in any school year prior to the adoption of the budget document which authorizes
that expenditure, or prior to an amendment to the budget document by the board to
authorize the expenditure. Expenditures of funds in violation of this subdivision shall be
considered unlawful expenditures. deleted text begin Prior to the appropriation of revenue for the next
school year in the initial budget, the board shall inform the principal or other responsible
administrative authority of each site of the amount of general education and referendum
revenue that the Department of Education estimates will be generated by the pupils
in attendance at each site. For purposes of this subdivision, a district may adjust the
department's estimates for school building openings, school building closings, changes
in attendance area boundaries, or other changes in programs or student demographics
not reflected in the department's calculations. A district must report to the department
any adjustments it makes according to this subdivision in the department's estimates
of compensatory revenue generated by the pupils in attendance at each site, and the
department must use the adjusted compensatory revenue estimates in preparing the report
required under section 123B.76, subdivision 3, paragraph (c). deleted text end

Sec. 3.

Minnesota Statutes 2006, section 123B.79, subdivision 8, is amended to read:

Subd. 8.

Account transfer for reorganizing districts.

A district that has
reorganized according to sections 123A.35 to 123A.43, 123A.46, or 123A.48, or has
conducted a successful referendum on the question of combination under section
123A.37, subdivision 2, or consolidation under section 123A.48, subdivision 15, or has
been assigned an identification number by the commissioner under section 123A.48,
subdivision 16, may make permanent transfers between any of the funds new text begin or accounts new text end in
the newly created or enlarged district with the exception of the debt redemption fund,
food service fund, and health and safety account of the capital expenditure fund. Fund
transfers under this section may be made for up to one year prior to the effective date of
combination or consolidation new text begin by the consolidating boards new text end and during the year following
the effective date of reorganization new text begin by the consolidated board. The newly formed board of
the combined district may adopt a resolution on or before August 30 of the year of the
reorganization authorizing a transfer among accounts or funds of the previous independent
school districts which transfer or transfers shall be reported in the affected districts'
audited financial statements for the year immediately preceding the consolidation new text end .

Sec. 4.

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

Sec. 5.

Minnesota Statutes 2006, section 124D.111, subdivision 1, is amended to read:

Subdivision 1.

School lunch aid computation.

Each school year, the state must pay
participants in the national school lunch program the amount of cents for each full
paid, reduced, and free student lunch served to students.

Sec. 6.

Minnesota Statutes 2006, section 126C.15, subdivision 2, is amended to read:

Subd. 2.

Building allocation.

(a) A district must allocate its compensatory
revenue to each school building in the district where the children who have generated the
revenue are served unless the school district has received permission under new text begin Laws 2005,
First Special Session chapter 5, article 1, new text end section 50 new text begin , new text end to allocate compensatory revenue
according to student performance measures developed by the school board.

(b) Notwithstanding paragraph (a), a district may allocate up to five percent of the
amount of compensatory revenue that the district receives to school sites according to a
plan adopted by the school board. new text begin The money reallocated under this paragraph must be
spent for the purposes listed in subdivision 1, but may be spent on students in any grade,
including students attending school readiness or other prekindergarten programs.
new text end

(c) For the purposes of this section and section 126C.05, subdivision 3, "building"
means education site as defined in section 123B.04, subdivision 1.

(d) If the pupil is served at a site other than one owned and operated by the district,
the revenue shall be paid to the district and used for services for pupils who generate the
revenue.

new text begin (e) A district with school building openings, school building closings, changes
in attendance area boundaries, or other changes in programs or student demographics
between the prior year and the current year may reallocate compensatory revenue among
sites to reflect these changes. A district must report to the department any adjustments it
makes according to this paragraph and the department must use the adjusted compensatory
revenue allocations in preparing the report required under section 123B.76, subdivision 3,
paragraph (c).
new text end

Sec. 7.

Minnesota Statutes 2006, section 126C.41, is amended by adding a subdivision
to read:

new text begin Subd. 6. new text end

new text begin Levy authority for unfunded severance and retirement costs. new text end

new text begin (a) A
school district qualifies for eligibility under this section if the district:
new text end

new text begin (1) participated in the cooperative secondary facilities program;
new text end

new text begin (2) consolidated with at least two other school districts; and
new text end

new text begin (3) has unfunded severance or retirement costs.
new text end

new text begin (b) An eligible school district may annually levy up to $150,000 for unfunded
severance or retirement costs. This levy authority expires after taxes payable in 2017.
new text end

new text begin (c) A school district that levies under this section must reserve the proceeds of the
levy and spend those amounts only for unfunded severance or retirement costs.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxes payable in 2008.
new text end

Sec. 8.

Minnesota Statutes 2006, section 126C.48, subdivision 2, is amended to read:

Subd. 2.

Notice to commissioner; forms.

By October 7 of each year each
district must notify the commissioner of the proposed levies in compliance with the levy
limitations of this chapter and chapters 120B, 122A, 123A, 123B, 124D, 125A, 127A, and
136D. new text begin A school district that has reached an agreement with its home county auditor to
extend the date of certification of its proposed levy under section 275.065, subdivision 1,
must submit its notice of proposed levies to the commissioner no later than October 10 of
each year. new text end By January 7 of each year each district must notify the commissioner of the
final levies certified. The commissioner shall prescribe the form of these notifications and
may request any additional information necessary to compute certified levy amounts.

Sec. 9.

Minnesota Statutes 2006, section 275.065, subdivision 1, is amended to read:

Subdivision 1.

Proposed levy.

(a) Notwithstanding any law or charter to the
contrary, on or before September 15, each taxing authority, other than a school district,
shall adopt a proposed budget and shall certify to the county auditor the proposed or, in
the case of a town, the final property tax levy for taxes payable in the following year.

(b) On or before September 30, each school district new text begin that has not mutually agreed
with its home county to extend this date new text end shall certify to the county auditor the proposed
property tax levy for taxes payable in the following year. new text begin Each school district that has
agreed with its home county to delay the certification of its proposed property tax levy
must certify its proposed property tax levy for the following year no later than October
7. new text end The school district shall certify the proposed levy as:

(1) a specific dollar amount by school district fund, broken down between
voter-approved and non-voter-approved levies and between referendum market value
and tax capacity levies; or

(2) the maximum levy limitation certified by the commissioner of education
according to section 126C.48, subdivision 1.

(c) If the board of estimate and taxation or any similar board that establishes
maximum tax levies for taxing jurisdictions within a first class city certifies the maximum
property tax levies for funds under its jurisdiction by charter to the county auditor by
September 15, the city shall be deemed to have certified its levies for those taxing
jurisdictions.

(d) For purposes of this section, "taxing authority" includes all home rule and
statutory cities, towns, counties, school districts, and special taxing districts as defined
in section 275.066. Intermediate school districts that levy a tax under chapter 124 or
136D, joint powers boards established under sections 123A.44 to 123A.446, and Common
School Districts No. 323, Franconia, and No. 815, Prinsburg, are also special taxing
districts for purposes of this section.

Sec. 10.

Minnesota Statutes 2006, section 275.065, subdivision 1a, is amended to read:

Subd. 1a.

Overlapping jurisdictions.

In the case of a taxing authority lying in
two or more counties, the home county auditor shall certify the proposed levy and the
proposed local tax rate to the other county auditor by October 5 new text begin , unless the home county
has agreed to delay the certification of its proposed property tax levy, in which case the
home county auditor shall certify the proposed levy and the proposed local tax rate to the
other county auditor by October 10 new text end . The home county auditor must estimate the levy or
rate in preparing the notices required in subdivision 3, if the other county has not certified
the appropriate information. If requested by the home county auditor, the other county
auditor must furnish an estimate to the home county auditor.

Sec. 11. new text begin PLAINVIEW-ELGIN-MILLVILLE; CONSOLIDATED DISTRICT
FUND BALANCE CALCULATIONS.
new text end

new text begin Subdivision 1. new text end

new text begin Fiscal year 2007 replacement aid. new text end

new text begin Independent School District
No. 2899, Plainview-Elgin-Millville, is eligible for replacement aid to offset its excess
fund balance penalty for fiscal year 2007.
new text end

new text begin Subd. 2. new text end

new text begin Fiscal years 2008 and 2009. new text end

new text begin Upon receipt of appropriate documentation
from Independent School District No. 2899, Plainview-Elgin-Millville, the Department of
Education must adjust the district's three-year adjusted average fund balances required
under Minnesota Statutes, sections 124D.135, 124D.16 and 124D.20. The department
shall adjust the fiscal year 2006 account balances reported by former Independent School
Districts Nos. 806, Elgin-Millville, and 810, Plainview, to reflect any permanent account
of fund transfers made under Minnesota Statutes, section 123B.79.
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. 12. new text begin FUND TRANSFER.
new text end

new text begin Subdivision 1. new text end

new text begin Brainerd. new text end

new text begin Notwithstanding Minnesota Statutes, section 123B.79
or 123B.80, on June 30, 2007, Independent School District No. 181, Brainerd, may
permanently transfer up to $750,000 from its reserved for operating capital account to its
undesignated general fund balance without making a levy reduction.
new text end

new text begin Subd. 2. new text end

new text begin Campbell-Tintah. new text end

new text begin Notwithstanding Minnesota Statutes, section 123B.79
or 123B.80, on June 30, 2007, Independent School District No. 852, Campbell-Tintah,
may permanently transfer up to $100,000 from its reserved for operating capital account
to its undesignated general fund without making a levy reduction.
new text end

new text begin Subd. 3. new text end

new text begin Comfrey. new text end

new text begin Notwithstanding Minnesota Statutes, section 123B.79
or 123B.80, on June 30, 2007, Independent School District No. 81, Comfrey, may
permanently transfer up to $250,000 from its reserved for operating capital account to its
undesignated general fund balance without making a levy reduction.
new text end

new text begin Subd. 4. new text end

new text begin Floodwood. new text end

new text begin Notwithstanding Minnesota Statutes, section 123B.79
or 123B.80, on June 30, 2007, Independent School District No. 698, Floodwood,
may transfer up to $227,000 from its reserved for disabled accessibility account to its
undesignated general fund balance without making a levy reduction.
new text end

new text begin Subd. 5. new text end

new text begin International Falls. new text end

new text begin Notwithstanding Minnesota Statutes, section 123B.79
or 123B.80, on June 30, 2007, Independent School District No. 361, International Falls,
may permanently transfer up to $100,000 from its reserved for operating capital account
to its undesignated general fund balance without making a levy reduction.
new text end

new text begin Subd. 6. new text end

new text begin Jackson County Central. new text end

new text begin Notwithstanding Minnesota Statutes, section
123B.79 or 123B.80, on June 30, 2007, Independent School District No. 2895, Jackson
County Central, may permanently transfer up to $300,000 from its reserved for operating
capital account to its undesignated general fund balance without making a levy reduction.
new text end

new text begin Subd. 7. new text end

new text begin Red Rock Central. new text end

new text begin Notwithstanding Minnesota Statutes, section 123B.79
or 123B.80, on June 30, 2007, Independent School District No. 2884, Red Rock Central,
may permanently transfer up to $81,000 from its reserved for disabled accessibility
account to its undesignated general fund balance without making a levy reduction.
new text end

new text begin Subd. 8. new text end

new text begin Windom. new text end

new text begin Notwithstanding Minnesota Statutes, section 123B.79 or
123B.80, on June 30, 2007, Independent School District No. 177, Windom, may transfer
up to $50,000 from its reserved for operating capital account to its undesignated general
fund balance without making a levy reduction.
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. 13. new text begin APPROPRIATIONS.
new text end

new text begin Subdivision 1. new text end

new text begin Department of Education. new text end

new text begin The sums indicated in this section are
appropriated from the general fund to the Department of Education for the fiscal years
designated.
new text end

new text begin Subd. 2. new text end

new text begin School lunch. new text end

new text begin For school lunch aid according to Minnesota Statutes,
section 124D.111, and Code of Federal Regulations, title 7, section 210.17:
new text end

	new text begin $ new text end	new text begin 12,022,000 new text end	new text begin ..... new text end	new text begin 2008 new text end
	new text begin $ new text end	new text begin 12,166,000 new text end	new text begin ..... new text end	new text begin 2009 new text end

new text begin Subd. 3. new text end

new text begin Traditional school breakfast; kindergarten milk. new text end

new text begin For traditional school
breakfast aid and kindergarten milk under Minnesota Statutes, sections 124D.1158 and
124D.118:
new text end

	new text begin $ new text end	new text begin 5,460,000 new text end	new text begin ..... new text end	new text begin 2008 new text end
	new text begin $ new text end	new text begin 5,695,000 new text end	new text begin ..... new text end	new text begin 2009 new text end

new text begin Subd. 4. new text end

new text begin Summer food service replacement aid. new text end

new text begin For summer food service
replacement aid under Minnesota Statutes, section 124D.119:
new text end

	new text begin $ new text end	new text begin 150,000 new text end	new text begin ..... new text end	new text begin 2008 new text end
	new text begin $ new text end	new text begin 150,000 new text end	new text begin ..... new text end	new text begin 2009 new text end

new text begin Subd. 5. new text end

new text begin Plainview-Elgin-Millville fund balance replacement aid.
new text end

new text begin For fund balance replacement aid for Independent School District No. 2899,
Plainview-Elgin-Millville:
new text end

new text begin $ new text end

new text begin 17,000 new text end

new text begin ..... new text end

new text begin 2008 new text end

new text begin This is a onetime appropriation.
new text end

Sec. 14. new text begin REPEALER.
new text end

new text begin Minnesota Statutes 2006, section 123B.749, new text end new text begin is repealed.
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

Sec. 2.

Minnesota Statutes 2006, section 134.34, subdivision 4, is amended to read:

Subd. 4.

Limitation.

A regional library basic system support grant shall not be
made to a regional public library system for a participating city or county which decreases
the dollar amount provided for support for operating purposes of public library service
below the amount provided by it for the second preceding year. new text begin For purposes of this
subdivision and subdivision 1, any funds provided under section 473.757, subdivision 2,
for extending library hours of operation shall not be considered amounts provided by a city
or county for support for operating purposes of public library service. new text end This subdivision
shall not apply to participating cities or counties where the adjusted net tax capacity of
that city or county has decreased, if the dollar amount of the reduction in support is not
greater than the dollar amount by which support would be decreased if the reduction in
support were made in direct proportion to the decrease in adjusted net tax capacity.

new text begin EFFECTIVE DATE. new text end

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

Sec. 3. new text begin DEPARTMENT OF EDUCATION; LIBRARY APPROPRIATIONS.
new text end

new text begin Subdivision 1. new text end

new text begin Department of Education. new text end

new text begin The sums indicated in this section are
appropriated from the general fund to the Department of Education for the fiscal years
designated.
new text end

new text begin Subd. 2. new text end

new text begin Basic system support. new text end

new text begin For basic system support grants under Minnesota
Statutes, section 134.355:
new text end

	new text begin $ new text end	new text begin 9,182,000 new text end	new text begin ..... new text end	new text begin 2008 new text end
	new text begin $ new text end	new text begin 13,138,000 new text end	new text begin ..... new text end	new text begin 2009 new text end

new text begin The 2008 appropriation includes $857,000 for 2007 and $8,325,000 for 2008.
new text end

new text begin The 2009 appropriation includes $925,000 for 2008 and $12,213,000 for 2009.
new text end

new text begin Subd. 3. new text end

new text begin Multicounty, multitype library systems. new text end

new text begin For grants under Minnesota
Statutes, sections 134.353 and 134.354, to multicounty, multitype library systems:
new text end

	new text begin $ new text end	new text begin 1,260,000 new text end	new text begin ..... new text end	new text begin 2008 new text end
	new text begin $ new text end	new text begin 1,300,000 new text end	new text begin ..... new text end	new text begin 2009 new text end

new text begin The 2008 appropriation includes $90,000 for 2007 and $1,170,000 for 2008.
new text end

new text begin The 2009 appropriation includes $130,000 for 2008 and $1,170,000 for 2009.
new text end

new text begin Subd. 4. new text end

new text begin Electronic library for Minnesota. new text end

new text begin For statewide licenses to online
databases selected in cooperation with the Minnesota Office of Higher Education for
school media centers, public libraries, state government agency libraries, and public
or private college or university libraries:
new text end

	new text begin $ new text end	new text begin 900,000 new text end	new text begin ..... new text end	new text begin 2008 new text end
	new text begin $ new text end	new text begin 900,000 new text end	new text begin ..... new text end	new text begin 2009 new text end

new text begin Any balance in the first year does not cancel but is available in the second year.
new text end

new text begin Subd. 5. new text end

new text begin Regional library telecommunications aid. new text end

new text begin For regional library
telecommunications aid under Minnesota Statutes, section 134.355:
new text end

	new text begin $ new text end	new text begin 2,190,000 new text end	new text begin ..... new text end	new text begin 2008 new text end
	new text begin $ new text end	new text begin 2,300,000 new text end	new text begin ..... new text end	new text begin 2009 new text end

new text begin The 2008 appropriation includes $120,000 for 2007 and $2,070,000 for 2008.
new text end

new text begin The 2009 appropriation includes $230,000 for 2008 and $2,070,000 for 2009.
new text end

new text begin Subd. 6. new text end

new text begin Hennepin County and Minneapolis library systems merger. new text end

new text begin For costs
attributable to the library system merger:
new text end

new text begin $ new text end

new text begin 4,500,000 new text end

new text begin ..... new text end

new text begin 2008 new text end

new text begin If the Hennepin County and Minneapolis city library systems do not merge, any
unexpended balance remaining in this appropriation must be allocated to increase the
fiscal year 2008 entitlement for Basic System Support Grants under Minnesota Statutes,
section 134.355.
new text end

new text begin This appropriation is available through June 30, 2009.
new text end

new text begin This is a onetime appropriation.
new text end

ARTICLE 7

STATE AGENCIES

Section 1.

new text begin [127A.065] CROSS-SUBSIDY REPORT.
new text end

new text begin By January 10, the commissioner of education shall submit an annual report to the
legislative committees having jurisdiction over kindergarten through grade 12 education
on the amount each district is cross-subsidizing special education costs with general
education revenue.
new text end

Sec. 2.

Minnesota Statutes 2006, section 517.08, subdivision 1c, is amended to read:

Subd. 1c.

Disposition of license fee.

(a) Of the marriage license fee collected
pursuant to subdivision 1b, paragraph (a), $15 must be retained by the county. The local
registrar must pay $85 to the commissioner of finance to be deposited as follows:

(1) $50 in the general fund;

(2) $3 in the new text begin state government new text end special revenue fund to be appropriated to the
commissioner of deleted text begin education deleted text end new text begin public safety new text end for parenting time centers under section 119A.37;

(3) $2 in the special revenue fund to be appropriated to the commissioner of health
for developing and implementing the MN ENABL program under section 145.9255;

(4) $25 in the special revenue fund is appropriated to the commissioner of
employment and economic development for the displaced homemaker program under
section 116L.96; and

(5) $5 in the special revenue fund is appropriated to the commissioner of human
services for the Minnesota Healthy Marriage and Responsible Fatherhood Initiative under
section 256.742.

(b) Of the $30 fee under subdivision 1b, paragraph (b), $15 must be retained by the
county. The local registrar must pay $15 to the commissioner of finance to be deposited
as follows:

(1) $5 as provided in paragraph (a), clauses (2) and (3); and

(2) $10 in the special revenue fund is appropriated to the commissioner of
employment and economic development for the displaced homemaker program under
section 116L.96.

(c) The increase in the marriage license fee under paragraph (a) provided for in Laws
2004, chapter 273, and disbursement of the increase in that fee to the special fund for the
Minnesota Healthy Marriage and Responsible Fatherhood Initiative under paragraph (a),
clause (5), is contingent upon the receipt of federal funding under United States Code, title
42, section 1315, for purposes of the initiative.

Sec. 3. new text begin RULEMAKING AUTHORITY; CAREER AND TECHNICAL
EDUCATION.
new text end

new text begin The commissioner of education shall adopt rules under Minnesota Statutes, chapter
14, for the administration of career and technical education programs for grades 7 through
12 under Minnesota Statutes, sections 124D.452, 124D.4531, and 124D.454, to ensure
that the career and technical levy and programs can be administered to serve students
under the current state and local organizational structures.
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. 4. new text begin APPROPRIATIONS; DEPARTMENT OF EDUCATION.
new text end

new text begin Subdivision 1. new text end

new text begin Department of Education. new text end

new text begin Unless otherwise indicated, the sums
indicated in this section are appropriated from the general fund to the Department of
Education for the fiscal years designated.
new text end

new text begin Subd. 2. new text end

new text begin Department. new text end

new text begin (a) For the Department of Education:
new text end

	new text begin $ new text end	new text begin 22,169,000 new text end	new text begin ..... new text end	new text begin 2008 new text end
	new text begin $ new text end	new text begin 22,653,000 new text end	new text begin ..... new text end	new text begin 2009 new text end

new text begin Any balance in the first year does not cancel but is available in the second year.
new text end

new text begin (b) $7,000 in fiscal year 2008 is for GRAD test rulemaking.
new text end

new text begin (c) $7,000 in fiscal year 2008 is for rulemaking under section 3.
new text end

new text begin (d) $40,000 each year is for an early hearing loss intervention coordinator under
Minnesota Statutes, section 125A.63, subdivision 5. If the department expends federal
funds to employ a hearing loss coordinator under Minnesota Statutes, section 125.63,
subdivision 5, then the appropriation under this paragraph is reallocated for purposes of
employing a world languages coordinator.
new text end

new text begin (e) $260,000 each year is for the Minnesota Children's Museum.
new text end

new text begin (f) $41,000 each year is for the Minnesota Academy of Science.
new text end

new text begin (g) $619,000 in fiscal year 2008 and $632,000 in fiscal year 2009 are for the Board
of Teaching.
new text end

new text begin (h) $163,000 in fiscal year 2008 and $171,000 in fiscal year 2009 are for the Board
of School Administrators.
new text end

new text begin (i) $50,000 each year is for the Duluth Children's Museum.
new text end

new text begin (j) The expenditures of federal grants and aids as shown in the biennial budget
document and its supplements are approved and appropriated and shall be spent as
indicated.
new text end

new text begin (k) None of the amounts appropriated under this subdivision may be used for
Minnesota's Washington, D.C., office.
new text end

Sec. 5. new text begin APPROPRIATIONS; MINNESOTA STATE ACADEMIES.
new text end

new text begin The sums indicated in this section are appropriated from the general fund to the
Minnesota State Academies for the Deaf and the Blind for the fiscal years designated:
new text end

	new text begin $ new text end	new text begin 11,788,000 new text end	new text begin ..... new text end	new text begin 2008 new text end
	new text begin $ new text end	new text begin 11,915,000 new text end	new text begin ..... new text end	new text begin 2009 new text end

new text begin Any balance in the first year does not cancel but is available in the second year.
new text end

Sec. 6. new text begin APPROPRIATIONS; PERPICH CENTER FOR ARTS EDUCATION.
new text end

new text begin The sums indicated in this section are appropriated from the general fund to the
Perpich Center for Arts Education for the fiscal years designated:
new text end

	new text begin $ new text end	new text begin 6,929,000 new text end	new text begin ..... new text end	new text begin 2008 new text end
	new text begin $ new text end	new text begin 7,090,000 new text end	new text begin ..... new text end	new text begin 2009 new text end

new text begin Any balance in the first year does not cancel but is available in the second year.
new text end

Sec. 7. new text begin APPROPRIATIONS; DEPARTMENT OF PUBLIC SAFETY.
new text end

new text begin The sums indicated in this section are appropriated from the state government
special revenue fund to the Department of Public Safety for the fiscal years designated to
fund parenting time centers as described in Minnesota Statutes, section 119A.37:
new text end

	new text begin $ new text end	new text begin 96,000 new text end	new text begin ..... new text end	new text begin 2008 new text end
	new text begin $ new text end	new text begin 96,000 new text end	new text begin ..... new text end	new text begin 2009 new text end

ARTICLE 8

PUPIL TRANSPORTATION STANDARDS

Section 1.

Minnesota Statutes 2006, section 123B.88, subdivision 12, is amended to
read:

Subd. 12.

Early childhood family education participants.

Districts may provide
bus transportation along deleted text begin regular deleted text end school bus routes when space is available for participants
in early childhood family education programs and school readiness programs if these
services do not result in an increase in the district's expenditures for transportation.
The costs allocated to these services, as determined by generally accepted accounting
principles, shall be considered part of the authorized cost for deleted text begin regular deleted text end transportation for
the purposes of section 123B.92.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment
and applies for fiscal year 2007 and later.
new text end

Sec. 2.

Minnesota Statutes 2006, section 123B.90, subdivision 2, is amended to read:

Subd. 2.

Student training.

(a) Each district must provide public school pupils
enrolled in kindergarten through grade 10 with age-appropriate school bus safety training,
as described in this section, of the following concepts:

(1) transportation by school bus is a privilege and not a right;

(2) district policies for student conduct and school bus safety;

(3) appropriate conduct while on the school bus;

(4) the danger zones surrounding a school bus;

(5) procedures for safely boarding and leaving a school bus;

(6) procedures for safe street or road crossing; and

(7) school bus evacuation.

(b) Each nonpublic school located within the district must provide all nonpublic
school pupils enrolled in kindergarten through grade 10 who are transported by school
bus at public expense and attend school within the district's boundaries with training as
required in paragraph (a).

(c) Students enrolled in kindergarten through grade 6 who are transported by school
bus and are enrolled during the first or second week of school must receive the school bus
safety training competencies by the end of the third week of school. Students enrolled in
grades 7 through 10 who are transported by school bus and are enrolled during the first or
second week of school and have not previously received school bus safety training must
receive the training or receive bus safety instructional materials by the end of the sixth
week of school. Students taking driver's training instructional classes deleted text begin and other students in
grades 9 and 10 deleted text end must receive training in the laws and proper procedures when operating a
motor vehicle in the vicinity of a school bus new text begin as required by section 169.446, subdivisions 2
and 3 new text end . Students enrolled in kindergarten through grade 10 who enroll in a school after the
second week of school and are transported by school bus and have not received training
in their previous school district shall undergo school bus safety training or receive bus
safety instructional materials within four weeks of the first day of attendance. new text begin Upon
request of the superintendent of schools, new text end the school transportation safety director in each
district must certify to the superintendent deleted text begin of schools annually deleted text end that all students transported
by school bus within the district have received the school bus safety training according to
this section. new text begin Upon request of the superintendent of the school district where the nonpublic
school is located, new text end the principal or other chief administrator of each nonpublic school must
certify deleted text begin annually deleted text end to the school transportation safety director of the district in which the
school is located that the school's students transported by school bus at public expense
have received training according to this section.

(d) A district and a nonpublic school with students transported by school bus at
public expense may provide kindergarten pupils with bus safety training before the first
day of school.

(e) A district and a nonpublic school with students transported by school bus at
public expense may also provide student safety education for bicycling and pedestrian
safety, for students enrolled in kindergarten through grade 5.

(f) A district and a nonpublic school with students transported by school bus at
public expense must make reasonable accommodations for the school bus safety training
of pupils known to speak English as a second language and pupils with disabilities.

(g) The district and a nonpublic school with students transported by school bus at
public expense must provide students enrolled in kindergarten through grade 3 school bus
safety training twice during the school year.

(h) A district and a nonpublic school with students transported by school bus at public
expense must conduct a school bus evacuation drill at least once during the school year.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2007.
new text end

Sec. 3.

Minnesota Statutes 2006, section 169.01, is amended by adding a subdivision
to read:

new text begin Subd. 92. new text end

new text begin Cellular phone. new text end

new text begin "Cellular phone" means a cellular, analog, wireless, or
digital telephone capable of sending or receiving telephone or text messages without
an access line for service.
new text end

Sec. 4.

Minnesota Statutes 2006, section 169.443, is amended by adding a subdivision
to read:

new text begin Subd. 9. new text end

new text begin Personal cellular phone call prohibition. new text end

new text begin A school bus driver may not
operate a school bus while communicating over, or otherwise operating, a cellular phone
for personal reasons, whether hand-held or hands free, when the vehicle is in motion.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2007.
new text end

Sec. 5.

Minnesota Statutes 2006, section 169.447, subdivision 2, is amended to read:

Subd. 2.

Driver seat belt.

deleted text begin New deleted text end School buses and Head Start buses deleted text begin manufactured
after December 31, 1994, deleted text end must be equipped with driver seat belts and seat belt assemblies
of the type described in section 169.685, subdivision 3. School bus drivers and Head
Start bus drivers must use these seat belts.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2007.
new text end

Sec. 6.

Minnesota Statutes 2006, section 169.4501, subdivision 1, is amended to read:

Subdivision 1.

National standards adopted.

Except as provided in sections
169.4502 and 169.4503, the construction, design, equipment, and color of types A, B, C,
deleted text begin and deleted text end D new text begin and multifunctional school activity bus new text end school buses used for the transportation
of school children shall meet the requirements of the "bus chassis standards" and "bus
body standards" in the deleted text begin 2000 deleted text end new text begin 2005 new text end edition of the "National School Transportation
Specifications and Procedures" adopted by the National deleted text begin Conference deleted text end new text begin Congress new text end on School
Transportation. Except as provided in section 169.4504, the construction, design, and
equipment of types A, B, C, deleted text begin and deleted text end D new text begin and multifunctional school activity bus new text end school buses
used for the transportation of students with disabilities also shall meet the requirements
of the "specially equipped school bus standards" in the deleted text begin 2000 deleted text end new text begin 2005 new text end National School
Transportation Specifications and Procedures. The "bus chassis standards," "bus body
standards," and "specially equipped school bus standards" sections of the deleted text begin 2000 deleted text end new text begin 2005 new text end
edition of the "National School Transportation Specifications and Procedures" are
incorporated by reference in this chapter.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2008.
new text end

Sec. 7.

Minnesota Statutes 2006, section 169.4501, subdivision 2, is amended to read:

Subd. 2.

Applicability.

(a) The standards adopted in this section and sections
169.4502 and 169.4503, govern the construction, design, equipment, and color of school
buses used for the transportation of school children, when owned or leased and operated
by a school or privately owned or leased and operated under a contract with a school.
Each school, its officers and employees, and each person employed under the contract is
subject to these standards.

(b) The standards apply to school buses manufactured after deleted text begin October 31, 2004 deleted text end new text begin
December 31, 2007 new text end . Buses complying with the standards when manufactured need not
comply with standards established later except as specifically provided for by law.

(c) A school bus manufactured on or before deleted text begin October 31, 2004 deleted text end new text begin December 31,
2007 new text end , must conform to the Minnesota standards in effect on the date the vehicle was
manufactured except as specifically provided for in law.

(d) A new bus body may be remounted on a used chassis provided that the remounted
vehicle meets state and federal standards for new buses which are current at the time of the
remounting. Permission must be obtained from the commissioner of public safety before
the remounting is done. A used bus body may not be remounted on a new or used chassis.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2008.
new text end

Sec. 8.

Minnesota Statutes 2006, section 169.4502, subdivision 5, is amended to read:

Subd. 5.

Electrical system; battery.

(a) The storage battery, as established by the
manufacturer's rating, must be of sufficient capacity to care for starting, lighting, signal
devices, heating, and other electrical equipment. In a bus with a gas-powered chassis, the
battery or batteries must provide a minimum of 800 cold cranking amperes. In a bus
with a diesel-powered chassis, the battery or batteries must provide a minimum of 1050
cold cranking amperes.

(b) In a type B bus with a gross vehicle weight rating of 15,000 pounds or more, and
type C and D buses, the battery shall be temporarily mounted on the chassis frame. The
final location of the battery and the appropriate cable lengths in these buses must comply
with the SBMI design objectives booklet.

(c) All batteries shall be mounted according to chassis manufacturers'
recommendations.

(d) In a type C bus, other than are powered by diesel fuel, a battery providing at least
550 cold cranking amperes may be installed in the engine compartment only if used in
combination with a generator or alternator of at least deleted text begin 120 deleted text end new text begin 130 new text end amperes.

(e) A bus with a gross vehicle weight rating of 15,000 pounds or less may be
equipped with a battery to provide a minimum of 550 cold cranking amperes only if used
in combination with an alternator of at least deleted text begin 80 deleted text end new text begin 130 new text end amperes. This paragraph does not
apply to those buses with wheelchair lifts or diesel engines.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2008.
new text end

Sec. 9.

Minnesota Statutes 2006, section 169.4503, subdivision 13, is amended to read:

Subd. 13.

Identification.

(a) Each bus shall, in the beltline, identify the school
district serviced, or company name, or owner of the bus. Numbers necessary for
identification must appear on the sides and rear of the bus. Symbols or letters may
be used on the outside of the bus near the entrance door for student identification. A
manufacturer's nameplate or logo may be placed on the bus.

(b) Effective December 31, 1994, all new text begin type A, B, C, and D new text end buses sold must display
lettering "Unlawful to pass when red lights are flashing" on the rear of the bus. The
lettering shall be in two-inch black letters on school bus yellow background. This message
shall be displayed directly below the upper window of the rear door. On rear engine buses,
it shall be centered at approximately the same location. Only signs and lettering approved
or required by state law may be displayed.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2008.
new text end

Sec. 10.

Minnesota Statutes 2006, section 169.4503, subdivision 20, is amended to
read:

Subd. 20.

Seat and crash barriers.

new text begin (a) new text end All restraining barriers and passenger seats
shall be covered with a material that has fire retardant or fire block characteristics.

new text begin (b) All seats must have a minimum cushion depth of 15 inches and a seat back
height of at least 20 inches above the seating reference point.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2008.
new text end

Sec. 11.

Minnesota Statutes 2006, section 171.02, subdivision 2, is amended to read:

Subd. 2.

Driver's license classifications, endorsements, exemptions.

(a) Drivers'
licenses are classified according to the types of vehicles that may be driven by the holder
of each type or class of license. The commissioner may, as appropriate, subdivide the
classes listed in this subdivision and issue licenses classified accordingly.

(b) Except as provided in paragraph (c), clauses (1) and (2), and subdivision 2a, no
class of license is valid to operate a motorcycle, school bus, tank vehicle, double-trailer
or triple-trailer combination, vehicle transporting hazardous materials, or bus, unless
so endorsed. There are four general classes of licenses as described in paragraphs (c)
through (f).

(c) Class D drivers' licenses are valid for:

(1) operating all farm trucks if the farm truck is:

(i) controlled and operated by a farmer, including operation by an immediate family
member or an employee of the farmer;

(ii) used to transport agricultural products, farm machinery, or farm supplies,
including hazardous materials, to or from a farm;

(iii) not used in the operations of a common or contract motor carrier as governed by
Code of Federal Regulations, title 49, part 365; and

(iv) used within 150 miles of the farm;

(2) notwithstanding paragraph (b), operating an authorized emergency vehicle,
as defined in section 169.01, subdivision 5, whether or not in excess of 26,000 pounds
gross vehicle weight;

(3) operating a recreational vehicle as defined in section 168.011, subdivision 25,
that is operated for personal use;

(4) operating all single-unit vehicles except vehicles with a gross vehicle weight of
more than 26,000 pounds, vehicles designed to carry more than 15 passengers including
the driver, and vehicles that carry hazardous materials;

(5) notwithstanding paragraph (d), operating a type A school bus new text begin or a multifunctional
school activity bus new text end without a school bus endorsement if:

(i) the bus has a gross vehicle weight of 10,000 pounds or less;

(ii) the bus is designed to transport 15 or fewer passengers, including the driver; and

(iii) the requirements of subdivision 2a are satisfied, as determined by the
commissioner;

(6) operating any vehicle or combination of vehicles when operated by a licensed
peace officer while on duty; and

(7) towing vehicles if:

(i) the towed vehicles have a gross vehicle weight of 10,000 pounds or less; or

(ii) the towed vehicles have a gross vehicle weight of more than 10,000 pounds and
the combination of vehicles has a gross vehicle weight of 26,000 pounds or less.

(d) Class C drivers' licenses are valid for:

(1) operating class D motor vehicles;

(2) with a hazardous materials endorsement, transporting hazardous materials
in class D vehicles; and

(3) with a school bus endorsement, operating school buses designed to transport 15
or fewer passengers, including the driver.

(e) Class B drivers' licenses are valid for:

(1) operating all class C motor vehicles, class D motor vehicles, and all other
single-unit motor vehicles including, with a passenger endorsement, buses; and

(2) towing only vehicles with a gross vehicle weight of 10,000 pounds or less.

(f) Class A drivers' licenses are valid for operating any vehicle or combination of
vehicles.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2008.
new text end

Sec. 12.

Minnesota Statutes 2006, section 171.02, subdivision 2a, is amended to read:

Subd. 2a.

Exception for certain school bus drivers.

Notwithstanding subdivision
2, paragraph (c), the holder of a class D driver's license, without a school bus endorsement,
may operate a type A school bus described in subdivision 2, paragraph (b), under the
following conditions:

(a) The operator is an employee of the entity that owns, leases, or contracts for the
school bus and is not solely hired to provide transportation services under this subdivision.

(b) The operator drives the school bus only from points of origin to points of
destination, not including home-to-school trips to pick up or drop off students.

(c) The operator is prohibited from using the eight-light system. Violation of this
paragraph is a misdemeanor.

(d) The operator's employer has adopted and implemented a policy that provides for
annual training and certification of the operator in:

(1) safe operation of the type of school bus the operator will be driving;

(2) understanding student behavior, including issues relating to students with
disabilities;

(3) encouraging orderly conduct of students on the bus and handling incidents of
misconduct appropriately;

(4) knowing and understanding relevant laws, rules of the road, and local school
bus safety policies;

(5) handling emergency situations; and

(6) safe loading and unloading of students.

(e) A background check or background investigation of the operator has been
conducted that meets the requirements under section 122A.18, subdivision 8, or 123B.03
for teachers; section 144.057 or chapter 245C for day care employees; or section 171.321,
subdivision 3, for all other persons operating a type A school bus under this subdivision.

(f) Operators shall submit to a physical examination as required by section 171.321,
subdivision 2.

(g) The operator's driver's license is verified annually by the entity that owns, leases,
or contracts for the school bus.

(h) A person who sustains a conviction, as defined under section 609.02, of violating
section 169A.25, 169A.26, 169A.27, 169A.31, 169A.51, or 169A.52, or a similar statute
or ordinance of another state is precluded from operating a school bus for five years
from the date of conviction.

(i) A person who has ever been convicted of a disqualifying offense as defined in
section 171.3215, subdivision 1, paragraph (c), may not operate a school bus under this
subdivision.

(j) A person who sustains a conviction, as defined under section 609.02, of a fourth
moving offense in violation of chapter 169 is precluded from operating a school bus for
one year from the date of the last conviction.

(k) Students riding the school bus must have training required under section
123B.90, subdivision 2.

(l) An operator must be trained in the proper use of child safety restraints as set
forth in the National Highway Traffic Safety Administration's "Guideline for the Safe
Transportation of Pre-school Age Children in School Buses deleted text begin . deleted text end new text begin , new text end " new text begin if child safety restraints are
used by the passengers.
new text end

(m) Annual certification of the requirements listed in this subdivision must be
maintained under separate file at the business location for each operator licensed under
this subdivision and subdivision 2, paragraph (b), clause (5). The business manager,
school board, governing body of a nonpublic school, or any other entity that owns,
leases, or contracts for the school bus operating under this subdivision is responsible
for maintaining these files for inspection.

(n) The school bus must bear a current certificate of inspection issued under section
169.451.

(o) The word "School" on the front and rear of the bus must be covered by a sign
that reads "Activities" when the bus is being operated under authority of this subdivision.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2008.
new text end

Sec. 13.

Minnesota Statutes 2006, section 171.321, subdivision 4, is amended to read:

Subd. 4.

Training.

(a) No person shall drive a class A, B, C, or D school bus when
transporting school children to or from school or upon a school-related trip or activity
without having demonstrated sufficient skills and knowledge to transport students in
a safe and legal manner.

(b) A bus driver must have training or experience that allows the driver to meet at
least the following competencies:

(1) safely operate the type of school bus the driver will be driving;

(2) understand student behavior, including issues relating to students with
disabilities;

(3) encourage orderly conduct of students on the bus and handle incidents of
misconduct appropriately;

(4) know and understand relevant laws, rules of the road, and local school bus
safety policies;

(5) handle emergency situations; and

(6) safely load and unload students.

(c) The commissioner of public safety shall develop a comprehensive model
school bus driver training program and model assessments for school bus driver training
competencies, which are not subject to chapter 14. A school district new text begin , nonpublic school, or
private contractor new text end may use alternative assessments for bus driver training competencies
with the approval of the commissioner of public safety. new text begin A driver may receive at least eight
hours of school bus in-service training any year, as an alternative to being assessed for bus
driver competencies after the initial year of being assessed for bus driver competencies.
new text end The employer shall keep the assessment new text begin or a record of the in-service training new text end for the
current period available for inspection by representatives of the commissioner.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2007.
new text end

Sec. 14. new text begin RULES REVISED: COMMISSIONER OF PUBLIC SAFETY.
new text end

new text begin Subdivision 1. new text end

new text begin Rules revised under the good cause exemption. new text end

new text begin The commissioner
of public safety must amend and adopt the revisions to the rules listed in subdivisions 2 to
8 under the good cause exemption to the rulemaking process under Minnesota Statutes,
section 14.388, subdivision 1, clause (3).
new text end

new text begin Subd. 2. new text end

new text begin Minnesota Rules, part 7470.0500. new text end

new text begin The commissioner of public safety
must amend Minnesota Rules, part 7470.0500, by replacing two obsolete references to the
Department of Children, Families, and Learning, with a reference to the Department of
Public Safety and removing references to specifically repealed rules.
new text end

new text begin Subd. 3. new text end

new text begin Minnesota Rules, part 7470.0700. new text end

new text begin The commissioner of public safety
must amend Minnesota Rules, part 7470.0700, as follows:
new text end

new text begin (1) for the points assigned to school bus equipment defects, strike the reference to
"orange" school buses and include a new school bus color exemption for multifunctional
school activity buses; and
new text end

new text begin (2) replace the references to type I and type II school buses with type A, B, C,
or D school buses.
new text end

new text begin Subd. 4. new text end

new text begin Minnesota Rules, part 7470.1000. new text end

new text begin The commissioner of public safety
must amend Minnesota Rules, part 7470.1000, to:
new text end

new text begin (1) include multifunctional school activity buses in the headnote;
new text end

new text begin (2) update subpart 1 to include multifunctional school activity buses as a type of
school bus listed after bus types A, B, C, and D;
new text end

new text begin (3) modify subpart 2 to clarify that the prohibition against loading or unloading while
adjacent to a turn lane applies only when it is a right-hand turn lane and does not prohibit a
bus from loading or unloading at the side of the road when there is a center turn lane; and
new text end

new text begin (3) expand the exception that allows service dogs on school buses to include all
companion animals.
new text end

new text begin Subd. 5. new text end

new text begin Minnesota Rules, part 7470.1100. new text end

new text begin The commissioner of public safety
must amend Minnesota Rules, part 7470.1100, to include multifunctional school activity
buses in the headnote and amend subpart 1 to include multifunctional school activity buses
as a type of school bus listed after bus types A, B, C, and D. The commissioner must also
amend item B of this part to require drivers to use prewarning flashing signals, flashing
red signals, and stop signals arms on buses that are equipped with those signals.
new text end

new text begin Subd. 6. new text end

new text begin Minnesota Rules, part 7470.1400. new text end

new text begin The commissioner of public safety
must amend Minnesota Rules, part 7470.1400, to clarify that the operating rules in parts
7470.1000 to 7470.1500 apply to buses that are leased and rented as well as to school
buses that are owned by a school district, a nonpublic school, or a private operator under
contract to a school district or nonpublic school.
new text end

new text begin Subd. 7. new text end

new text begin Minnesota Rules, part 7470.1500. new text end

new text begin The commissioner of public safety
must amend Minnesota Rules, part 7470.1500, to:
new text end

new text begin (1) clarify that the prohibition against loading or unloading while adjacent to a turn
lane applies only when it is a right-hand turn lane and does not prohibit a bus from loading
or unloading at the side of the road when there is a center turn lane; and
new text end

new text begin (2) delete item H because it is obsolete.
new text end

new text begin Subd. 8. new text end

new text begin Minnesota Rules, part 7470.1700. new text end

new text begin The commissioner of public safety
must amend Minnesota Rules, part 7470.1700, subpart 2, to:
new text end

new text begin (1) clarify that the bus driver and the bus aide must have access to emergency health
care information for the students with disabilities transported on the bus; and
new text end

new text begin (2) add an item E that allows the health information to be maintained either in a hard
copy on the vehicle or immediately accessible through a two-way communications system.
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. new text begin REPEALER.
new text end

new text begin Minnesota Statutes 2006, sections 169.4502, subdivision 15; and 169.4503,
subdivisions 17, 18, and 26, new text end new text begin are repealed.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2008.
new text end

ARTICLE 9

EARLY CHILDHOOD AND

ADULT PROGRAMS

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.5411 new text end ; and

(5) identification of regular Head Start, early Head Start, new text begin full-day services identified
in section 119A.5411, new text end and innovative services based upon demonstrated needs to be
provided.

Sec. 3.

new text begin [119A.5411] FULL-DAY REQUIREMENTS.
new text end

new text begin The following phase-in of full-day services in Head Start programs or licensed child
care as defined in chapter 245A is required:
new text end

new text begin (1) by fiscal year 2009, a minimum of 25 percent of the total state-funded enrollment
throughout the state must be provided in full-day services;
new text end

new text begin (2) by fiscal year 2011, a minimum of 40 percent of the total state-funded enrollment
throughout the state must be provided in full-day services; and
new text end

new text begin (3) by fiscal year 2013, a minimum of 50 percent of the total state-funded enrollment
throughout the state must be provided in full-day services.
new text end

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

Sec. 4.

Minnesota Statutes 2006, section 121A.17, subdivision 5, is amended to read:

Subd. 5.

Developmental screening program information.

The board must inform
each resident family with a child eligible to participate in the developmental screening
program about the availability of the program and the state's requirement that a child
receive a developmental screening or provide health records indicating that the child
received a comparable developmental screening from a public or private health care
organization or individual health care provider not later than 30 days after the first
day of attending kindergarten in a public school. A school district must inform all
resident families with eligible children under age seven that their children may receive
a developmental screening conducted either by the school district or by a public or
private health care organization or individual health care provider new text begin and that the screening
is not required if a statement signed by the child's parent or guardian is submitted to the
administrator or other person having general control and supervision of the school that
the child has not been screened new text end .

Sec. 5.

Minnesota Statutes 2006, section 124D.13, subdivision 1, is amended to read:

Subdivision 1.

Establishment new text begin ; purpose new text end .

A district that provides a community
education program under sections 124D.18 and 124D.19 may establish an early childhood
family education program. Two or more districts, each of which provides a community
education program, may cooperate to jointly provide an early childhood family education
program. new text begin The purpose of the early childhood family education program is to provide
parenting education to support children's learning and development. new text end

Sec. 6.

Minnesota Statutes 2006, section 124D.13, subdivision 2, is amended to read:

Subd. 2.

Program deleted text begin characteristics deleted text end new text begin requirements new text end .

(a) Early childhood family
education programs are programs for children in the period of life from birth to
kindergarten, for the parents and other relatives of these children, and for expectant
parents. To the extent that funds are insufficient to provide programs for all children,
early childhood family education programs should emphasize programming for a child
from birth to age three and encourage parents and other relatives to involve four- and
five-year-old children in school readiness programs, and other public and nonpublic early
learning programs. new text begin A district may not limit participation to school district residents. new text end Early
childhood family education programs deleted text begin may include the following deleted text end new text begin must provide new text end :

(1) programs to educate parents and other relatives about the physical, mental, and
emotional development of children new text begin and to enhance the skills of parents and other relatives
in providing for their children's learning and development new text end ;

(2) deleted text begin programs to enhance the skills of parents and other relatives in providing for their
children's learning and development deleted text end new text begin structured learning activities requiring interaction
between children and their parents or relatives new text end ;

(3) new text begin structured new text end learning deleted text begin experiences deleted text end new text begin activities new text end for children deleted text begin and parents and other
relatives deleted text end that promote children's development new text begin and positive interaction with peers, which
are held while parents or relatives attend parent education classes new text end ;

deleted text begin (4) activities designed to detect children's physical, mental, emotional, or behavioral
problems that may cause learning problems;
deleted text end

deleted text begin (5) activities and materials designed to encourage self-esteem, skills, and behavior
that prevent sexual and other interpersonal violence;
deleted text end

deleted text begin (6) educational materials which may be borrowed for home use;
deleted text end

deleted text begin (7) deleted text end new text begin (4) new text end information on related community resources;

deleted text begin (8) programs to prevent deleted text end new text begin (5) information, materials, and activities that support the
safety of children, including prevention of new text end child abuse and neglect; new text begin and
new text end

deleted text begin (9) other programs or activities to improve the health, development, and school
readiness of children; or
deleted text end

deleted text begin (10) activities designed to maximize development during infancy.
deleted text end

new text begin (6) a community outreach plan to ensure participation by families who reflect the
racial, cultural, and economic diversity of the school district.
new text end

new text begin The programs must include learning experiences for children, parents, and other
relatives that promote children's early literacy skills. new text end The deleted text begin programs deleted text end new text begin program new text end must not
include activities for children that do not require substantial involvement of the children's
parents or other relatives. The deleted text begin programs deleted text end new text begin program new text end must be reviewed periodically to assure
the instruction and materials are not racially, culturally, or sexually biased. The programs
must encourage parents to be aware of practices that may affect equitable development of
children.

(b) For the purposes of this section, "relative" or "relatives" means noncustodial
grandparents or other persons related to a child by blood, marriage, adoption, or foster
placement, excluding parents.

Sec. 7.

Minnesota Statutes 2006, section 124D.13, subdivision 11, is amended to read:

Subd. 11.

Teachers.

A school board must employ necessary qualified teachers
new text begin licensed in early childhood or parent education new text end for its early childhood family education
programs.

Sec. 8.

Minnesota Statutes 2006, section 124D.13, is amended by adding a subdivision
to read:

new text begin Subd. 13. new text end

new text begin Plan and program data submission requirements. new text end

new text begin (a) An early
childhood family education program must submit a biennial plan addressing the
requirements of subdivision 2 for approval by the commissioner. The plan must also
describe how the program provides parenting education and ensures participation of
families representative of the school district. A school district must submit the plan for
approval by the commissioner in the form and manner prescribed by the commissioner.
One-half of districts, as determined by the commissioner, must first submit a biennial plan
by April 1, 2009, and the remaining districts must first submit a plan by April 1, 2010.
new text end

new text begin (b) Districts receiving early childhood family education revenue under section
124D.135 must submit annual program data to the department by July 15 in the form and
manner prescribed by the commissioner.
new text end

new text begin (c) Beginning with levies for fiscal year 2011, a school district must submit its annual
program data to the department before it may certify a levy under section 124D.135.
Districts selected by the commissioner to submit a biennial plan by April 1, 2009, must
also have an approved plan on file with the commissioner before certifying a levy under
section 124D.135 for fiscal year 2011. Beginning with levies for fiscal year 2012, all
districts must submit annual program data and have an approved biennial plan on file with
the commissioner before certifying a levy under section 124D.135.
new text end

Sec. 9.

Minnesota Statutes 2006, section 124D.135, subdivision 1, is amended to read:

Subdivision 1.

Revenue.

The revenue for early childhood family education
programs for a school district equals $112 for fiscal year 2007 new text begin and $120 for fiscal year
2008 new text end and later, times the greater of:

(1) 150; or

(2) the number of people under five years of age residing in the district on October 1
of the previous school year.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for revenue for fiscal year 2008.
new text end

Sec. 10.

Minnesota Statutes 2006, section 124D.135, subdivision 3, is amended to read:

Subd. 3.

Early childhood family education levy.

deleted text begin For fiscal year 2001 to obtain
early childhood family education revenue, a district may levy an amount equal to the tax
rate of .5282 percent times the adjusted tax capacity of the district for the year preceding
the year the levy is certified. Beginning with levies for fiscal year 2002, deleted text end new text begin (a) new text end By September
30 of each year, the commissioner shall establish a tax rate for early childhood new text begin family new text end
education revenue that raises deleted text begin $21,027,000 for fiscal year 2002 and deleted text end $22,135,000 in new text begin each new text end
fiscal year deleted text begin 2003 and each subsequent year deleted text end . If the amount of the early childhood family
education levy would exceed the early childhood family education revenue, the early
childhood family education levy must equal the early childhood family education revenue. new text begin
Beginning with levies for fiscal year 2011, a district may not certify an early childhood
family education levy unless it has met the annual program data reporting and biennial
plan requirements under section 124D.13, subdivision 13.
new text end

new text begin (b) Notwithstanding paragraph (a), for fiscal year 2009 only, the commissioner shall
establish a tax rate for early education revenue that raises $13,565,000.
new text end

Sec. 11.

Minnesota Statutes 2006, section 124D.135, subdivision 5, is amended to read:

Subd. 5.

Use of revenue restricted.

new text begin (a) new text end Early childhood family education revenue
may be used only for early childhood family education programs.

new text begin (b) new text end Not more than five percent of early childhood family education revenue, as
defined in subdivision 7, may be used to administer early childhood family education
programs.

new text begin (c) An early childhood family education program may use up to ten percent of its
early childhood family education revenue as defined in subdivision 1, including revenue
from participant fees, for equipment that is used in the early childhood family education
program. This revenue may only be used for the following purposes:
new text end

new text begin (1) to purchase or lease computers and related materials; and
new text end

new text begin (2) to purchase or lease equipment for instruction for participating children and
their families.
new text end

new text begin If a district anticipates an unusual circumstance requiring its early childhood family
education program capital expenditures to exceed the ten percent limitation, prior approval
to exceed the limit must be obtained in writing from the commissioner.
new text end

Sec. 12.

Minnesota Statutes 2006, section 124D.135, subdivision 6, is amended to read:

Subd. 6.

Home visiting levy.

A district that new text begin is eligible to levy for early childhood
family education under subdivision 3 and that new text end enters into a collaborative agreement to
provide education services and social services to families with young children may levy
an amount equal to $1.60 times the number of people under five years of age residing in
the district on September 1 of the last school year. Levy revenue under this subdivision
must not be included as revenue under subdivision 1. The revenue must be used for home
visiting programs under section 124D.13, subdivision 4.

Sec. 13.

Minnesota Statutes 2006, section 124D.15, subdivision 3, is amended to read:

Subd. 3.

Program requirements.

A school readiness program provider must:

(1) assess each child's cognitive skills when the child enters and again before the
child leaves the program to inform program planning and promote kindergarten readiness;

(2) provide comprehensive program content based on early childhood research and
professional practice that is focused on children's cognitive skills and development and
prepares children for the transition to kindergarten new text begin , including early literacy skills new text end ;

(3) arrange for early childhood screening and appropriate referral;

(4) involve parents in program planning and decision making;

(5) coordinate with relevant community-based services; and

(6) cooperate with adult basic education programs and other adult literacy programs.

Sec. 14.

new text begin [124D.2211] AFTER-SCHOOL COMMUNITY LEARNING
PROGRAMS.
new text end

new text begin Subdivision 1. new text end

new text begin Establishment. new text end

new text begin A competitive statewide after-school community
learning grant program is established to provide grants to community or nonprofit
organizations, political subdivisions, for-profit or nonprofit child care centers, or
school-based programs that serve youth after school or during nonschool hours. The
commissioner shall develop criteria for after-school community learning programs.
new text end

new text begin Subd. 2. new text end

new text begin Program outcomes. new text end

new text begin The expected outcomes of the after-school
community learning programs are to increase:
new text end

new text begin (1) school connectedness of participants;
new text end

new text begin (2) academic achievement of participating students in one or more core academic
areas;
new text end

new text begin (3) the capacity of participants to become productive adults; and
new text end

new text begin (4) prevent truancy from school and prevent juvenile crime.
new text end

new text begin Subd. 3. new text end

new text begin Grants. new text end

new text begin An applicant shall submit an after-school community learning
program proposal to the commissioner. The submitted plan must include:
new text end

new text begin (1) collaboration with and leverage of existing community resources that have
demonstrated effectiveness;
new text end

new text begin (2) outreach to children and youth; and
new text end

new text begin (3) involvement of local governments, including park and recreation boards or
schools, unless no government agency is appropriate.
new text end

new text begin Proposals will be reviewed and approved by the commissioner.
new text end

Sec. 15.

Minnesota Statutes 2006, section 124D.531, subdivision 1, is amended to read:

Subdivision 1.

State total adult basic education aid.

(a) The state total adult basic
education aid for fiscal year 2005 is $36,509,000. The state total adult basic education
aid for fiscal year 2006 equals $36,587,000 plus any amount that is not paid for during
the previous fiscal year, as a result of adjustments under subdivision 4, paragraph (a), or
section 124D.52, subdivision 3. The state total adult basic education aid for fiscal year
2007 equals $37,673,000 plus any amount that is not paid for during the previous fiscal
year, as a result of adjustments under subdivision 4, paragraph (a), or section 124D.52,
subdivision 3. new text begin The state total adult basic education aid for fiscal year 2008 equals
$40,650,000, plus any amount that is not paid during the previous fiscal year as a result of
adjustments under subdivision 4, paragraph (a), or section 124D.52, subdivision 3. new text end The
state total adult basic education aid for later fiscal years equals:

(1) the state total adult basic education aid for the preceding fiscal year plus any
amount that is not paid for during the previous fiscal year, as a result of adjustments under
subdivision 4, paragraph (a), or section 124D.52, subdivision 3; times

(2) the lesser of:

(i) 1.03; or

(ii) the greater of 1.00 or the ratio of the state total contact hours in the first prior
program year to the state total contact hours in the second prior program year.

Beginning in fiscal year 2002, two percent of the state total adult basic education
aid must be set aside for adult basic education supplemental service grants under section
124D.522.

(b) The state total adult basic education aid, excluding basic population aid, equals
the difference between the amount computed in paragraph (a), and the state total basic
population aid under subdivision 2.

Sec. 16.

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 deleted text begin $21 deleted text end new text begin $22 new text end 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, the aid for a program under subdivision 3, clause (2),
adjusted for changes in program membership, shall not be limited.
new text end

new text begin (d) For fiscal year 2009 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 $10,000.
new text end

(e) 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.

(f) 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. 17. new text begin APPROPRIATION.
new text end

new text begin Subdivision 1. new text end

new text begin Department of Education. new text end

new text begin The sums indicated in this section are
appropriated from the general fund to the Department of Education for the fiscal years
designated.
new text end

new text begin Subd. 2. new text end

new text begin Early childhood family education aid. new text end

new text begin For early childhood family
education aid under Minnesota Statutes, section 124D.135:
new text end

	new text begin $ new text end	new text begin 21,106,000 new text end	new text begin ..... new text end	new text begin 2008 new text end
	new text begin $ new text end	new text begin 29,601,000 new text end	new text begin ..... new text end	new text begin 2009 new text end

new text begin The 2008 appropriation includes $1,796,000 for 2007 and $19,310,000 for 2008.
new text end

new text begin The 2009 appropriation includes $2,145,000 for 2008 and $27,456,000 for 2009.
new text end

new text begin Subd. 3. new text end

new text begin School readiness. new text end

new text begin For revenue for school readiness programs under
Minnesota Statutes, sections 124D.15 and 124D.16:
new text end

	new text begin $ new text end	new text begin 9,995,000 new text end	new text begin ..... new text end	new text begin 2008 new text end
	new text begin $ new text end	new text begin 10,095,000 new text end	new text begin ..... new text end	new text begin 2009 new text end

new text begin The 2008 appropriation includes $909,000 for 2007 and $9,086,000 for 2008.
new text end

new text begin The 2009 appropriation includes $1,009,000 for 2008 and $9,086,000 for 2009.
new text end

new text begin Subd. 4. new text end

new text begin Health and developmental screening aid. new text end

new text begin For health and developmental
screening aid under Minnesota Statutes, sections 121A.17 and 121A.19:
new text end

	new text begin $ new text end	new text begin 3,159,000 new text end	new text begin ..... new text end	new text begin 2008 new text end
	new text begin $ new text end	new text begin 3,330,000 new text end	new text begin ..... new text end	new text begin 2009 new text end

new text begin The 2008 appropriation includes $288,000 for 2007 and $2,871,000 for 2008.
new text end

new text begin The 2009 appropriation includes $319,000 for 2008 and $3,011,000 for 2009.
new text end

new text begin Subd. 5. new text end

new text begin Educate parents partnership. new text end

new text begin For the educate parents partnership under
Minnesota Statutes, section 124D.129:
new text end

	new text begin $ new text end	new text begin 50,000 new text end	new text begin ..... new text end	new text begin 2008 new text end
	new text begin $ new text end	new text begin 50,000 new text end	new text begin ..... new text end	new text begin 2009 new text end

new text begin Any funds unexpended in fiscal year 2008 do not cancel and are available in fiscal
year 2009.
new text end

new text begin Subd. 6. new text end

new text begin Kindergarten entrance assessment initiative and intervention
program. new text end

new text begin For the kindergarten entrance assessment initiative and intervention program
under Minnesota Statutes, section 124D.162:
new text end

	new text begin $ new text end	new text begin 287,000 new text end	new text begin ..... new text end	new text begin 2008 new text end
	new text begin $ new text end	new text begin 287,000 new text end	new text begin ..... new text end	new text begin 2009 new text end

new text begin Any funds unexpended in fiscal year 2008 do not cancel and are available in fiscal
year 2009.
new text end

new text begin Subd. 7. new text end

new text begin Head Start programs. new text end

new text begin For Head Start programs under Minnesota
Statutes, section 119A.52:
new text end

	new text begin $ new text end	new text begin 20,100,000 new text end	new text begin ..... new text end	new text begin 2008 new text end
	new text begin $ new text end	new text begin 20,100,000 new text end	new text begin ..... new text end	new text begin 2009 new text end

new text begin Any balance in the first year does not cancel but is available in the second year.
new text end

new text begin Subd. 8. new text end

new text begin Community education aid. new text end

new text begin For community education aid under
Minnesota Statutes, section 124D.20:
new text end

	new text begin $ new text end	new text begin 1,307,000 new text end	new text begin ..... new text end	new text begin 2008 new text end
	new text begin $ new text end	new text begin 816,000 new text end	new text begin ..... new text end	new text begin 2009 new text end

new text begin The 2008 appropriation includes $195,000 for 2007 and $1,112,000 for 2008.
new text end

new text begin The 2009 appropriation includes $123,000 for 2008 and $693,000 for 2009.
new text end

new text begin Subd. 9. new text end

new text begin Adults with disabilities program aid. new text end

new text begin For adults with disabilities
programs under Minnesota Statutes, section 124D.56:
new text end

	new text begin $ new text end	new text begin 710,000 new text end	new text begin ..... new text end	new text begin 2008 new text end
	new text begin $ new text end	new text begin 710,000 new text end	new text begin ..... new text end	new text begin 2009 new text end

new text begin The 2008 appropriation includes $71,000 for 2007 and $639,000 for 2008.
new text end

new text begin The 2009 appropriation includes $71,000 for 2008 and $639,000 for 2009.
new text end

new text begin School districts operating existing adults with disabilities programs that are not fully
funded shall receive full funding for the program beginning in fiscal year 2008 before the
commissioner awards grants to other districts.
new text end

new text begin Subd. 10. new text end

new text begin Hearing-impaired adults. new text end

new text begin For programs for hearing-impaired adults
under Minnesota Statutes, section 124D.57:
new text end

	new text begin $ new text end	new text begin 70,000 new text end	new text begin ..... new text end	new text begin 2008 new text end
	new text begin $ new text end	new text begin 70,000 new text end	new text begin ..... new text end	new text begin 2009 new text end

new text begin Subd. 11. new text end

new text begin School-age care revenue. new text end

new text begin For extended day aid under Minnesota
Statutes, section 124D.22:
new text end

	new text begin $ new text end	new text begin 1,000 new text end	new text begin ..... new text end	new text begin 2008 new text end
	new text begin $ new text end	new text begin 1,000 new text end	new text begin ..... new text end	new text begin 2009 new text end

new text begin The 2008 appropriation includes $0 for 2007 and $1,000 for 2008.
new text end

new text begin The 2009 appropriation includes $0 for 2008 and $1,000 for 2009.
new text end

new text begin Subd. 12. new text end

new text begin After-school community learning grants. new text end

new text begin For after-school community
learning grants:
new text end

	new text begin $ new text end	new text begin 2,775,000 new text end	new text begin ..... new text end	new text begin 2008 new text end
	new text begin $ new text end	new text begin 2,600,000 new text end	new text begin ..... new text end	new text begin 2009 new text end

new text begin The commissioner may hire one full-time equivalent staff person to administer the
statewide after-school community learning grant program.
new text end

new text begin This is a onetime appropriation.
new text end

new text begin Subd. 13. new text end

new text begin Adult basic education aid. new text end

new text begin For adult basic education aid under
Minnesota Statutes, section 124D.531:
new text end

	new text begin $ new text end	new text begin 40,347,000 new text end	new text begin ..... new text end	new text begin 2008 new text end
	new text begin $ new text end	new text begin 41,745,000 new text end	new text begin ..... new text end	new text begin 2009 new text end

new text begin The 2008 appropriation includes $3,759,000 for 2007 and $36,588,000 for 2008.
new text end

new text begin The 2009 appropriation includes $4,065,000 for 2008 and $37,680,000 for 2009.
new text end

new text begin Subd. 14. new text end

new text begin GED test fees. new text end

new text begin For GED test fees under Minnesota Statutes, section
124D.55:
new text end

	new text begin $ new text end	new text begin 125,000 new text end	new text begin ..... new text end	new text begin 2008 new text end
	new text begin $ new text end	new text begin 125,000 new text end	new text begin ..... new text end	new text begin 2009 new text end

new text begin Any balance in the first year does not cancel but is available in the second year.
new text end

new text begin Subd. 15. new text end

new text begin Adult literacy grants for recent immigrants. new text end

new text begin For adult literacy grants
for recent immigrants to Minnesota under Laws 2006, chapter 282, article 2, section 26:
new text end

new text begin $ new text end

new text begin 1,250,000 new text end

new text begin ..... new text end

new text begin 2008 new text end

Sec. 18. new text begin APPROPRIATIONS; DEPARTMENT OF HEALTH.
new text end

new text begin Subdivision 1. new text end

new text begin Department of Health. new text end

new text begin The sums indicated in this section are
appropriated from the general fund to the Department of Health for the fiscal years
designated.
new text end

new text begin Subd. 2. new text end

new text begin Lead hazard reduction. new text end

new text begin For lead hazard reduction under Minnesota
Statutes, section 144.9512:
new text end

	new text begin $ new text end	new text begin 100,000 new text end	new text begin ..... new text end	new text begin 2008 new text end
	new text begin $ new text end	new text begin 100,000 new text end	new text begin ..... new text end	new text begin 2009 new text end

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

new text begin Minnesota Statutes 2006, sections 124D.175; and 124D.531, subdivision 5, new text end new text begin are
repealed.
new text end

ARTICLE 10

EDUCATION FORECAST ADJUSTMENTS

A. GENERAL EDUCATION

Section 1.

Laws 2005, First Special Session chapter 5, article 1, section 54, subdivision
2, as amended by Laws 2006, chapter 282, article 3, section 2, is amended to read:

Subd. 2

General education aid

For general education aid under Minnesota Statutes,
section 126C.13, subdivision 4:

	$	5,819,153,000	.....	2006
	$	deleted text begin 5,472,238,000 deleted text end new text begin 5,453,693,000 new text end	.....	2007

The 2006 appropriation includes $787,978,000 for 2005 and $5,031,175,000 for
2006.

The 2007 appropriation includes deleted text begin $513,848,000 deleted text end new text begin $518,218,000 new text end for 2006 and
deleted text begin $4,958,390,000 deleted text end new text begin $4,935,475,000 new text end for 2007.

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.

Laws 2005, First Special Session chapter 5, article 1, section 54, subdivision 4,
is amended to read:

Subd. 4.

Enrollment options transportation.

For transportation of pupils attending
postsecondary institutions under Minnesota Statutes, section 124D.09, or for transportation
of pupils attending nonresident districts under Minnesota Statutes, section 124D.03:

	$	55,000	.....	2006
	$	deleted text begin 55,000 deleted text end new text begin 93,000 new text end	.....	2007

new text begin EFFECTIVE DATE. new text end

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

Sec. 3.

Laws 2005, First Special Session chapter 5, article 1, section 54, subdivision 5,
as amended by Laws 2006, chapter 282, article 7, section 2, is amended to read:

Subd. 5.

Abatement revenue.

For abatement aid under Minnesota Statutes, section
127A.49:

	$	909,000	.....	2006
	$	deleted text begin 1,026,000 deleted text end new text begin 765,000 new text end	.....	2007

The 2006 appropriation includes $187,000 for 2005 and $722,000 for 2006.

The 2007 appropriation includes $80,000 for 2006 and deleted text begin $946,000 deleted text end new text begin $685,000 new text end for 2007.

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.

Laws 2005, First Special Session chapter 5, article 1, section 54, subdivision 6,
as amended by Laws 2006, chapter 282, article 7, section 3, is amended to read:

Subd. 6.

Consolidation transition.

For districts consolidating under Minnesota
Statutes, section 123A.485:

$

deleted text begin 527,000 deleted text end new text begin 388,000 new text end

.....

2007

The 2007 appropriation includes $0 for 2006 and deleted text begin $527,000 deleted text end new text begin $388,000 new text end for 2007.

new text begin EFFECTIVE DATE. new text end

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

Sec. 5.

Laws 2005, First Special Session chapter 5, article 1, section 54, subdivision 7,
as amended by Laws 2006, chapter 282, article 7, section 4, is amended to read:

Subd. 7.

Nonpublic pupil education aid.

For nonpublic pupil education aid under
Minnesota Statutes, sections 123B.87 and 123B.40 to 123B.43:

	$	15,458,000	.....	2006
	$	deleted text begin 15,991,000 deleted text end new text begin 15,972,000 new text end	.....	2007

The 2006 appropriation includes $1,864,000 for 2005 and $13,594,000 for 2006.

The 2007 appropriation includes $1,510,000 for 2006 and deleted text begin $14,481,000 deleted text end new text begin $14,462,000 new text end
for 2007.

new text begin EFFECTIVE DATE. new text end

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

Sec. 6.

Laws 2005, First Special Session chapter 5, article 1, section 54, subdivision 8,
as amended by Laws 2006, chapter 282, article 7, section 5, is amended to read:

Subd. 8.

Nonpublic pupil transportation.

For nonpublic pupil transportation aid
under Minnesota Statutes, section 123B.92, subdivision 9:

	$	21,371,000	.....	2006
	$	deleted text begin 20,843,000 deleted text end new text begin 21,133,000 new text end	.....	2007

The 2006 appropriation includes $3,274,000 for 2005 and $18,097,000 for 2006.

The 2007 appropriation includes $2,010,000 for 2006 and deleted text begin $18,833,000 deleted text end new text begin $19,123,000 new text end
for 2007.

new text begin EFFECTIVE DATE. new text end

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

B. EDUCATION EXCELLENCE

Sec. 7.

Laws 2005, First Special Session chapter 5, article 2, section 84, subdivision 2,
as amended by Laws 2006, chapter 282, article 7, section 6, is amended to read:

Subd. 2. Charter school building lease aid. For building lease aid under Minnesota
Statutes, section 124D.11, subdivision 4:

	$	25,331,000	.....	2006
	$	deleted text begin 27,806,000 deleted text end new text begin 27,795,000 new text end	.....	2007

The 2006 appropriation includes $3,173,000 for 2005 and $22,158,000 for 2006.

The 2007 appropriation includes $2,462,000 for 2006 and deleted text begin $25,344,000 deleted text end new text begin $25,333,000 new text end
for 2007.

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.

Laws 2005, First Special Session chapter 5, article 2, section 84, subdivision 3,
as amended by Laws 2006, chapter 282, article 7, section 7, is amended to read:

Subd. 3.

Charter school startup aid.

For charter school startup cost aid under
Minnesota Statutes, section 124D.11:

	$	1,291,000	.....	2006
	$	deleted text begin 2,347,000 deleted text end new text begin 2,316,000 new text end	.....	2007

The 2006 appropriation includes $0 for 2005 and $1,291,000 for 2006.

The 2007 appropriation includes $143,000 for 2006 and deleted text begin $2,204,000 deleted text end new text begin $2,173,000 new text end
for 2007.

new text begin EFFECTIVE DATE. new text end

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

Sec. 9.

Laws 2005, First Special Session chapter 5, article 2, section 84, subdivision 4,
as amended by Laws 2006, chapter 282, article 7, section 8, is amended to read:

Subd. 4.

Integration aid.

For integration aid under Minnesota Statutes, section
124D.86, subdivision 5:

	$	59,404,000	.....	2006
	$	deleted text begin 58,405,000 deleted text end new text begin 58,075,000 new text end	.....	2007

The 2006 appropriation includes $8,545,000 for 2005 and $50,859,000 for 2006.

The 2007 appropriation includes $5,650,000 for 2006 and deleted text begin $52,755,000 deleted text end new text begin $52,425,000 new text end
for 2007.

new text begin EFFECTIVE DATE. new text end

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

Sec. 10.

Laws 2005, First Special Session chapter 5, article 2, section 84, subdivision
6, as amended by Laws 2006, chapter 282, article 7, section 9, is amended to read:

Subd. 6.

Interdistrict desegregation or integration transportation grants.

For
interdistrict desegregation or integration transportation grants under Minnesota Statutes,
section 124D.87:

	$	6,032,000	.....	2006
	$	deleted text begin 10,134,000 deleted text end new text begin 8,169,000 new text end	.....	2007

new text begin EFFECTIVE DATE. new text end

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

Sec. 11.

Laws 2005, First Special Session chapter 5, article 2, section 84, subdivision
10, as amended by Laws 2006, chapter 282, article 7, section 11, is amended to read:

Subd. 10.

Tribal contract schools.

For tribal contract school aid under Minnesota
Statutes, section 124D.83:

	$	2,338,000	.....	2006
	$	deleted text begin 2,357,000 deleted text end new text begin 2,060,000 new text end	.....	2007

The 2006 appropriation includes $348,000 for 2005 and $1,990,000 for 2006.

The 2007 appropriation includes $221,000 for 2006 and deleted text begin $2,136,000 deleted text end new text begin $1,839,000 new text end
for 2007.

new text begin EFFECTIVE DATE. new text end

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

C. SPECIAL EDUCATION

Sec. 12.

Laws 2005, First Special Session chapter 5, article 3, section 18, subdivision
2, as amended by Laws 2006, chapter 282, article 7, section 12, is amended to read:

Subd. 2. Special education; regular. For special education aid under Minnesota Statutes,
section 125A.75:

	$	559,485,000	.....	2006
	$	deleted text begin 528,106,000 deleted text end new text begin 529,257,000 new text end	.....	2007

The 2006 appropriation includes $83,078,000 for 2005 and $476,407,000 for 2006.

The 2007 appropriation includes $52,934,000 for 2006 and deleted text begin $475,172,000 deleted text end new text begin
$476,323,000 new text end for 2007.

new text begin EFFECTIVE DATE. new text end

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

Sec. 13.

Laws 2005, First Special Session chapter 5, article 3, section 18, subdivision
3, as amended by Laws 2006, chapter 282, article 7, section 13, is amended to read:

Subd. 3.

Aid for children with disabilities.

For aid under Minnesota Statutes,
section 125A.75, subdivision 3, for children with disabilities placed in residential facilities
within the district boundaries for whom no district of residence can be determined:

	$	1,527,000	.....	2006
	$	deleted text begin 1,624,000 deleted text end new text begin 1,410,000 new text end	.....	2007

If the appropriation for either year is insufficient, the appropriation for the other
year is available.

new text begin EFFECTIVE DATE. new text end

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

Sec. 14.

Laws 2005, First Special Session chapter 5, article 3, section 18, subdivision
4, as amended by Laws 2006, chapter 282, article 7, section 14, is amended to read:

Subd. 4.

Travel for home-based services.

For aid for teacher travel for home-based
services under Minnesota Statutes, section 125A.75, subdivision 1:

	$	198,000	.....	2006
	$	deleted text begin 195,000 deleted text end new text begin 224,000 new text end	.....	2007

The 2006 appropriation includes $28,000 for 2005 and $170,000 for 2006.

The 2007 appropriation includes $18,000 for 2006 and deleted text begin $177,000 deleted text end new text begin $206,000 new text end for 2007.

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.

Laws 2005, First Special Session chapter 5, article 3, section 18, subdivision
6, as amended by Laws 2006, chapter 282, article 7, section 16, is amended to read:

Subd. 6. Transition for disabled students. For aid for transition programs for children
with disabilities under Minnesota Statutes, section 124D.454:

	$	9,300,000	.....	2006
	$	deleted text begin 8,781,000 deleted text end new text begin 8,800,000 new text end	.....	2007

The 2006 appropriation includes $1,380,000 for 2005 and $7,920,000 for 2006.

The 2007 appropriation includes $880,000 for 2006 and deleted text begin $7,901,000 deleted text end new text begin $7,920,000 new text end
for 2007.

new text begin EFFECTIVE DATE. new text end

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

D. FACILITIES

Sec. 16.

Laws 2005, First Special Session chapter 5, article 4, section 25, subdivision
2, as amended by Laws 2006, chapter 282, article 7, section 18, is amended to read:

Subd. 2.

Health and safety revenue.

For health and safety aid according to
Minnesota Statutes, section 123B.57, subdivision 5:

	$	823,000	.....	2006
	$	deleted text begin 352,000 deleted text end new text begin 249,000 new text end	.....	2007

The 2006 appropriation includes $211,000 for 2005 and $612,000 for 2006.

The 2007 appropriation includes $68,000 for 2006 and deleted text begin $284,000 deleted text end new text begin $181,000 new text end for 2007.

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.

Laws 2005, First Special Session chapter 5, article 4, section 25, subdivision
3, as amended by Laws 2006, chapter 282, article 5, section 2, is amended to read:

Subd. 3.

Debt service equalization.

For debt service aid according to Minnesota
Statutes, section 123B.53, subdivision 6:

	$	27,206,000	.....	2006
	$	deleted text begin 18,410,000 deleted text end new text begin 18,395,000 new text end	.....	2007

The 2006 appropriation includes $4,654,000 for 2005 and $22,552,000 for 2006.

The 2007 appropriation includes $2,504,000 for 2006 and deleted text begin $15,906,000 deleted text end new text begin $15,891,000 new text end
for 2007.

new text begin EFFECTIVE DATE. new text end

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

E. NUTRITION

Sec. 18.

Laws 2005, First Special Session chapter 5, article 5, section 17, subdivision
3, as amended by Laws 2006, chapter 282, article 7, section 20, is amended to read:

Subd. 3.

Traditional school breakfast; kindergarten milk.

For traditional school
breakfast aid and kindergarten milk under Minnesota Statutes, sections 124D.1158 and
124D.118:

	$	4,856,000	.....	2006
	$	deleted text begin 5,044,000 deleted text end new text begin 5,175,000 new text end	.....	2007

new text begin EFFECTIVE DATE. new text end

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

F. EARLY CHILDHOOD EDUCATION

Sec. 19.

Laws 2005, First Special Session chapter 5, article 7, section 20, subdivision
2, as amended by Laws 2006, chapter 282, article 7, section 24, is amended to read:

Subd. 2.

School readiness.

For revenue for school readiness programs under
Minnesota Statutes, sections 124D.15 and 124D.16:

	$	9,528,000	.....	2006
	$	deleted text begin 9,020,000 deleted text end new text begin 9,087,000 new text end	.....	2007

The 2006 appropriation includes $1,415,000 for 2005 and $8,113,000 for 2006.

The 2007 appropriation includes $901,000 for 2006 and deleted text begin $8,119,000 deleted text end new text begin $8,186,000 new text end
for 2007.

new text begin EFFECTIVE DATE. new text end

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

Sec. 20.

Laws 2005, First Special Session chapter 5, article 7, section 20, subdivision
3, as amended by Laws 2006, chapter 282, article 2, section 24, is amended to read:

Subd. 3.

Early childhood family education aid.

For early childhood family
education aid under Minnesota Statutes, section 124D.135:

	$	15,105,000	.....	2006
	$	deleted text begin 17,792,000 deleted text end new text begin 17,639,000 new text end	.....	2007

The 2006 appropriation includes $1,859,000 for 2005 and $13,246,000 for 2006.

The 2007 appropriation includes $1,471,000 for 2006 and deleted text begin $16,321,000 deleted text end new text begin $16,168,000 new text end
for 2007.

new text begin EFFECTIVE DATE. new text end

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

Sec. 21.

Laws 2005, First Special Session chapter 5, article 7, section 20, subdivision
4, as amended by Laws 2006, chapter 282, article 2, section 25, is amended to read:

Subd. 4.

Health and developmental screening aid.

For health and developmental
screening aid under Minnesota Statutes, sections 121A.17 and 121A.19:

	$	3,000,000	.....	2006
	$	deleted text begin 2,997,000 deleted text end new text begin 2,880,000 new text end	.....	2007

The 2006 appropriation includes $417,000 for 2005 and $2,583,000 for 2006

The 2007 appropriation includes $287,000 for 2006 and deleted text begin $2,710,000 deleted text end new text begin $2,593,000 new text end
for 2007.

new text begin EFFECTIVE DATE. new text end

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

Sec. 22.

Laws 2006, chapter 282, article 2, section 28, subdivision 4, is amended to
read:

Subd. 4.

Early childhood Part C.

For the expansion of early childhood Part C
services:

$

deleted text begin 400,000 deleted text end new text begin -0- new text end

.....

2007

new text begin EFFECTIVE DATE. new text end

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

G. PREVENTION

Sec. 23.

Laws 2005, First Special Session chapter 5, article 8, section 8, subdivision 2,
as amended by Laws 2006, chapter 282, article 7, section 25, is amended to read:

Subd. 2. Community education aid. For community education aid under Minnesota
Statutes, section 124D.20:

	$	2,043,000	.....	2006
	$	deleted text begin 1,949,000 deleted text end new text begin 1,942,000 new text end	.....	2007

The 2006 appropriation includes $385,000 for 2005 and $1,658,000 for 2006.

The 2007 appropriation includes $184,000 for 2006 and deleted text begin $1,765,000 deleted text end new text begin $1,758,000 new text end
for 2007.

new text begin EFFECTIVE DATE. new text end

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

Sec. 24.

Laws 2005, First Special Session chapter 5, article 8, section 8, subdivision 5,
as amended by Laws 2006, chapter 282, article 7, section 27, is amended to read:

Subd. 5.

School-age care revenue.

For extended day aid under Minnesota Statutes,
section 124D.22:

	$	17,000	.....	2006
	$	deleted text begin 4,000 deleted text end new text begin 6,000 new text end	.....	2007

The 2006 appropriation includes $4,000 for 2005 and $13,000 for 2006.

The 2007 appropriation includes $1,000 for 2006 and deleted text begin $3,000 deleted text end new text begin $5,000 new text end for 2007.

new text begin EFFECTIVE DATE. new text end

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

H. SELF-SUFFICIENCY AND LIFELONG LEARNING

Sec. 25.

Laws 2005, First Special Session chapter 5, article 9, section 4, subdivision 2,
is amended to read:

Subd. 2.

Adult basic education aid.

For adult basic education aid under Minnesota
Statutes:

	$	36,518,000	.....	2006
	$	deleted text begin 36,540,000 deleted text end new text begin 37,486,000 new text end	.....	2007

The 2006 appropriation includes $5,707,000 for 2005 and $30,811,000 for 2006.

The 2007 appropriation includes deleted text begin $5,737,000 deleted text end new text begin $3,654,000 new text end for 2006 and deleted text begin $30,803,000 deleted text end new text begin
$33,832,000 new text end for 2007.

new text begin EFFECTIVE DATE. new text end

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

ARTICLE 11

TECHNICAL AND CONFORMING AMENDMENTS

Section 1.

Minnesota Statutes 2006, section 122A.628, subdivision 2, is amended to
read:

Subd. 2.

Revenue.

A school district that is selected to participate in the schools
mentoring schools program under this section may utilize its professional compensation
revenue under section deleted text begin 122A.4142 deleted text end new text begin 122A.414 new text end , subdivision 4, to pay regional training sites
for staff development and training services.

Sec. 2.

Minnesota Statutes 2006, section 123A.73, subdivision 8, is amended to read:

Subd. 8.

Taxable property.

As of the effective date of a consolidation of districts or
the dissolution of a district and its attachment to one or more existing districts pursuant
to chapter 123A, deleted text begin and subject to the conditions of section 126C.42, subdivision 1, deleted text end all
the taxable property which is in the newly created or enlarged district and which was
previously taxable for the payment of any statutory operating debt theretofore incurred by
any preexisting district of which the taxable property was a part prior to the consolidation
or dissolution and attachment shall remain taxable for the payment of that debt and shall
not become taxable for the payment of any statutory operating debt theretofore incurred
by any preexisting district of which the taxable property was not a part prior to the
consolidation or dissolution and attachment. The amount of statutory operating debt
attributable to that taxable property and to the newly created or enlarged district in which
it is located, and the amount of a preexisting district's reserved fund balance reserve
account for purposes of statutory operating debt reduction attributable to the newly created
or enlarged district, shall be apportioned according to the proportion which the adjusted
net tax capacity of that part of the preexisting district bears to the total adjusted net tax
capacity of the entire preexisting district at the time of the consolidation or dissolution
and attachment. This apportionment shall be made by the county auditor and shall
be incorporated as an annex to the order of the commissioner dividing the assets and
liabilities of the component districts. As used in this section, "statutory operating debt"
shall have the meaning given it in section 123B.81.

Sec. 3.

Minnesota Statutes 2006, section 123B.79, subdivision 6, is amended to read:

Subd. 6.

Account transfer for statutory operating debt.

On June 30 of each year,
a district may make a permanent transfer from the general fund account entitled "net
unreserved general fund balance since statutory operating debt" to the account entitled
"reserved fund balance reserve account for purposes of statutory operating debt reduction."
The amount of the transfer is limited to deleted text begin the lesser of (a) deleted text end the net unreserved general fund
balance deleted text begin , or (b) the sum of the remaining statutory operating debt levies authorized for all
future years according to section 126C.42, subdivision 1 deleted text end . If the net unreserved general
fund balance is less than zero, the district may not make a transfer.

Sec. 4.

Minnesota Statutes 2006, section 123B.81, subdivision 2, is amended to read:

Subd. 2.

Statutory operating debt.

If the amount of the operating debt is more
than 2-1/2 percent of the most recent fiscal year's expenditure amount for the funds
considered under subdivision 1, the net negative undesignated fund balance is defined as
"statutory operating debt" for the purposes of this section and deleted text begin sections deleted text end new text begin section new text end 123B.83
deleted text begin and 126C.42, subdivision 1 deleted text end .

Sec. 5.

Minnesota Statutes 2006, section 123B.81, subdivision 4, is amended to read:

Subd. 4.

Debt elimination.

If an audit or other verification procedure conducted
pursuant to subdivision 3 determines that a statutory operating debt exists, a district must
follow the procedures set forth in new text begin this new text end section deleted text begin 126C.42, subdivision 1, deleted text end to eliminate this
statutory operating debt.

Sec. 6.

Minnesota Statutes 2006, section 123B.81, subdivision 7, is amended to read:

Subd. 7.

Applicability.

This section deleted text begin and the provisions of section 126C.42,
subdivision 1, are deleted text end new text begin is new text end applicable only to common, independent, and special school districts
and districts formed pursuant to Laws 1967, chapter 822, as amended, and Laws 1969,
chapters 775 and 1060, as amended. This section deleted text begin and the provisions of section 126C.42,
subdivision 1, do deleted text end new text begin does new text end not apply to Independent School District No. 625.

Sec. 7.

Minnesota Statutes 2006, section 123B.83, subdivision 2, is amended to read:

Subd. 2.

Net unreserved general fund balances.

A school district must limit its
expenditures so that its net unreserved general fund balance does not constitute statutory
operating debt deleted text begin as defined in section 126C.42 deleted text end new text begin under section 123B.81 new text end .

Sec. 8.

Minnesota Statutes 2006, section 124D.34, subdivision 7, is amended to read:

Subd. 7.

Foundation staff.

The commissioner of education shall appoint the
executive director of the foundation from three candidates nominated and submitted by the
foundation board of directors and, as necessary, other staff who shall perform duties and
have responsibilities solely related to the foundation. The employees appointed are not
state employees under chapter 43A, but are covered under section 3.736. The employees
may participate in the state health and state insurance plans for employees in unclassified
service. The employees shall be supervised by the executive director.

The commissioner shall appoint deleted text begin from the Office of Lifework Development deleted text end a liaison
to the foundation board new text begin from the division in the department responsible for career and
technical education new text end .

Sec. 9.

Minnesota Statutes 2006, section 124D.65, subdivision 11, is amended to read:

Subd. 11.

Allocations from cooperative units.

For the purposes of this section
deleted text begin and section 125A.77 deleted text end , pupils of limited English proficiency enrolled in a cooperative
or intermediate school district unit shall be counted by the school district of residence,
and the cooperative unit shall allocate its approved expenditures for limited English
proficiency programs among participating school districts. Limited English proficiency
aid for services provided by a cooperative or intermediate school district shall be paid to
the participating school districts.

Sec. 10.

Minnesota Statutes 2006, section 125A.39, is amended to read:

125A.39 LOCAL INTERAGENCY AGREEMENTS.

School boards and the county board may enter into agreements to cooperatively
serve and provide funding for children with disabilities, under age five, and their families
within a specified geographic area.

The local interagency agreement must address, at a minimum, the following issues:

(1) responsibilities of local agencies on local interagency early intervention
committees (IEIC's), consistent with section 125A.38;

(2) assignment of financial responsibility for early intervention services;

(3) methods to resolve intraagency and interagency disputes;

(4) identification of current resources and recommendations about the allocation of
additional state and federal early intervention funds under the auspices of United States
Code, title 20, section 1471 et seq. (Part C, Public Law deleted text begin 102-119 deleted text end new text begin 108-446 new text end ) and United
States Code, title 20, section 631, et seq. (Chapter I, Public Law 89-313);

(5) data collection; and

(6) other components of the local early intervention system consistent with Public
Law 102-119.

Sec. 11.

Minnesota Statutes 2006, section 125A.42, is amended to read:

125A.42 PROCEDURAL SAFEGUARDS; PARENT AND CHILD RIGHTS.

(a) This section applies to local school and county boards for children from birth
through age two who are eligible for Part deleted text begin H deleted text end new text begin C new text end , Public Law deleted text begin 102-119 deleted text end new text begin 108-446 new text end , and their
families. This section must be consistent with the Individuals with Disabilities Education
Act, United States Code, title 20, sections 1471 to 1485 (Part deleted text begin H deleted text end new text begin C new text end , Public Law deleted text begin 102-119 deleted text end new text begin
108-446 new text end ), regulations adopted under United States Code, title 20, sections 1471 to 1485,
and sections 125A.259 to 125A.48.

(b) A parent has the right to:

(1) inspect and review early intervention records;

(2) prior written notice of a proposed action in the parents' native language unless it
is clearly not feasible to do so;

(3) give consent to any proposed action;

(4) selectively accept or decline any early intervention service; and

(5) resolve issues regarding the identification, evaluation, or placement of the child,
or the provision of appropriate early intervention services to the child and the child's
family through an impartial due process hearing pursuant to section 125A.46.

(c) The eligible child has the right to have a surrogate parent appointed by a school
district as required by section 125A.07.

Sec. 12.

Minnesota Statutes 2006, section 125A.44, is amended to read:

125A.44 COMPLAINT PROCEDURE.

(a) An individual or organization may file a written signed complaint with the
commissioner of the state lead agency alleging that one or more requirements of the Code
of Federal Regulations, title 34, part 303, is not being met. The complaint must include:

(1) a statement that the state has violated the Individuals with Disabilities Education
Act, United States Code, title 20, section 1471 et seq. (Part C, Public Law deleted text begin 102-119 deleted text end new text begin
108-446 new text end ) or Code of Federal Regulations, title 34, section 303; and

(2) the facts on which the complaint is based.

(b) The commissioner of the state lead agency shall receive and coordinate with
other state agencies the review and resolution of a complaint within 60 calendar days
according to the state interagency agreement required under section 125A.48. The
development and disposition of corrective action orders for nonschool agencies shall be
determined by the State Agency Committee (SAC). Failure to comply with corrective
orders may result in fiscal actions or other measures.

Sec. 13.

Minnesota Statutes 2006, section 125A.45, is amended to read:

125A.45 INTERAGENCY DISPUTE PROCEDURE.

(a) A dispute between a school board and a county board that is responsible for
implementing the provisions of section 125A.29 regarding early identification, child and
family assessment, service coordination, and IFSP development and implementation must
be resolved according to this subdivision when the dispute involves services provided
to children and families eligible under the Individuals with Disabilities Education Act,
United States Code, title 20, section 1471 et seq. (Part C, Public Law deleted text begin 102-119 deleted text end new text begin 108-446 new text end ).

(b) A dispute occurs when the school board and county board are unable to agree as
to who is responsible to coordinate, provide, pay for, or facilitate payment for services
from public and private sources.

(c) Written and signed disputes must be filed with the local primary agency.

(d) The local primary agency must attempt to resolve the matter with the involved
school board and county board and may request mediation from the commissioner of the
state lead agency for this purpose.

(e) When interagency disputes have not been resolved within 30 calendar days, the
local primary agency must request the commissioner of the state lead agency to review
the matter with the commissioners of health and human services and make a decision.
The commissioner must provide a consistent process for reviewing those procedures. The
commissioners' decision is binding subject to the right of an aggrieved party to appeal to
the state Court of Appeals.

(f) The local primary agency must ensure that eligible children and their families
receive early intervention services during resolution of a dispute. While a local dispute is
pending, the local primary agency must either assign financial responsibility to an agency
or pay for the service from the early intervention account under section 125A.35. If in
resolving the dispute, it is determined that the assignment of financial responsibility was
inappropriate, the responsibility for payment must be reassigned to the appropriate agency
and the responsible agency must make arrangements for reimbursing any expenditures
incurred by the agency originally assigned financial responsibility.

Sec. 14.

Minnesota Statutes 2006, section 125B.15, is amended to read:

125B.15 INTERNET ACCESS FOR STUDENTS.

(a) Recognizing the difference between school libraries, school computer labs, and
school media centers, which serve unique educational purposes, and public libraries,
which are designed for public inquiry, all computers at a school site with access to the
Internet available for student use must be equipped to restrict, including by use of
available software filtering technology or other effective methods, all student access
to material that is reasonably believed to be obscene or child pornography or material
harmful to minors under federal or state law.

(b) A school site is not required to purchase filtering technology if the school site
would incur more than incidental expense in making the purchase.

(c) A school district receiving technology revenue under section
must prohibit, including through use of available software filtering technology or other
effective methods, adult access to material that under federal or state law is reasonably
believed to be obscene or child pornography.

(d) A school district, its agents or employees, are immune from liability for failure
to comply with this section if they have made a good faith effort to comply with the
requirements of this section.

(e) "School site" means an education site as defined in section 123B.04, subdivision
1, or charter school under section 124D.10.

Sec. 15.

Minnesota Statutes 2006, section 126C.01, subdivision 9, is amended to read:

Subd. 9.

Training and experience index.

"Training and experience index"
means a measure of a district's teacher training and experience relative to the education
and experience of teachers in the state. The measure must be determined pursuant to
new text begin Minnesota Statutes 1996, new text end section 126C.11.

Sec. 16.

Minnesota Statutes 2006, section 126C.05, subdivision 1, is amended to read:

Subdivision 1.

Pupil unit.

Pupil units for each Minnesota resident pupil under the
age of 21 or who meets the requirements of section 120A.20, subdivision 1, paragraph
(c), in average daily membership enrolled in the district of residence, in another district
under sections 123A.05 to 123A.08, 124D.03, 124D.06, deleted text begin 124D.07, deleted text end 124D.08, or 124D.68;
in a charter school under section 124D.10; or for whom the resident district pays tuition
under section 123A.18, 123A.22, 123A.30, 123A.32, 123A.44, 123A.488, 123B.88,
subdivision 4, 124D.04, 124D.05, 125A.03 to 125A.24, 125A.51, or 125A.65, shall be
counted according to this subdivision.

(a) A prekindergarten pupil with a disability who is enrolled in a program approved
by the commissioner and has an individual education plan is counted as the ratio of the
number of hours of assessment and education service to 825 times 1.25 with a minimum
average daily membership of 0.28, but not more than 1.25 pupil units.

(b) A prekindergarten pupil who is assessed but determined not to be disabled is
counted as the ratio of the number of hours of assessment service to 825 times 1.25.

(c) A kindergarten pupil with a disability who is enrolled in a program approved
by the commissioner is counted as the ratio of the number of hours of assessment and
education services required in the fiscal year by the pupil's individual education program
plan to 875, but not more than one.

(d) A kindergarten pupil who is not included in paragraph (c) is counted as .557 of a
pupil unit for fiscal year 2000 and thereafter.

(e) A pupil who is in any of grades 1 to 3 is counted as 1.115 pupil units for fiscal
year 2000 and thereafter.

(f) A pupil who is any of grades 4 to 6 is counted as 1.06 pupil units for fiscal
year 1995 and thereafter.

(g) A pupil who is in any of grades 7 to 12 is counted as 1.3 pupil units.

(h) A pupil who is in the postsecondary enrollment options program is counted
as 1.3 pupil units.

Sec. 17.

Minnesota Statutes 2006, section 126C.48, subdivision 7, is amended to read:

Subd. 7.

Reporting.

For each tax settlement, the county auditor shall report
to each school district by fund, the district tax settlement revenue defined in section
123B.75, subdivision 5, paragraph (a), deleted text begin and the amount levied pursuant to section 126C.42,
subdivision 1, deleted text end on the form specified in section 276.10. The county auditor shall send to
the district a copy of the spread levy report specified in section 275.124.

Sec. 18.

Minnesota Statutes 2006, section 134.355, subdivision 9, is amended to read:

Subd. 9.

Telecommunications aid.

An application for regional library
telecommunications aid must, at a minimum, contain information to document the
following:

(1) the connections are adequate and employ an open network architecture that
will ensure interconnectivity and interoperability with school districts, postsecondary
education, or other governmental agencies;

(2) that the connection is established through the most cost-effective means and that
the regional library has explored and coordinated connections through school districts,
postsecondary education, or other governmental agencies;

(3) that the regional library system has filed an e-rate application; and

(4) other information, as determined by the commissioner of deleted text begin children, families, and
learning deleted text end new text begin education new text end , to ensure that connections are coordinated, efficient, and cost-effective,
take advantage of discounts, and meet applicable state standards.

The library system may include costs associated with cooperative arrangements with
postsecondary institutions, school districts, and other governmental agencies.

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

new text begin Minnesota Statutes 2006, sections 123A.22, subdivision 11; and 123B.81,
subdivision 8, new text end new text begin are repealed.
new text end