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HF 2245

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

KEY: stricken = removed, old language.
underscored = added, new language.
1.1A bill for an act
1.2relating to education; providing for policy and funding for early childhood,
1.3family, adult, and prekindergarten through grade 12 education including general
1.4education, education excellence, special programs, facilities and technology,
1.5nutrition and accounting, libraries, state agencies, pupil transportation standards,
1.6early childhood and adult programs; education forecast adjustments, and
1.7technical and conforming amendments; providing for task force and advisory
1.8groups; requiring reports; authorizing rulemaking; funding parenting centers;
1.9funding lead hazard reduction; appropriating money;amending Minnesota
1.10Statutes 2006, sections 16A.152, subdivision 2; 119A.50, by adding a
1.11subdivision; 119A.52; 119A.535; 120A.22, subdivision 7; 120B.021, subdivision
1.121; 120B.022, subdivision 1; 120B.12, subdivision 2; 120B.132; 120B.15;
1.13120B.30; 120B.31, subdivision 3; 120B.36, subdivision 1; 121A.17, subdivision
1.145; 122A.20, subdivision 1; 122A.415, by adding subdivisions; 122A.61, by
1.15adding a subdivision; 122A.628, subdivision 2; 122A.72, subdivision 5;
1.16123A.44; 123A.441; 123A.442; 123A.443; 123A.73, subdivision 8; 123B.02,
1.17by adding a subdivision; 123B.10, subdivision 1; 123B.143, subdivision 1;
1.18123B.53, subdivision 1; 123B.54; 123B.57, subdivision 3; 123B.63, subdivision
1.193; 123B.77, subdivision 4; 123B.79, subdivisions 6, 8, by adding a subdivision;
1.20123B.81, subdivisions 2, 4, 7; 123B.83, subdivision 2; 123B.88, subdivision 12;
1.21123B.90, subdivision 2; 123B.92, subdivisions 1, 3; 124D.095, subdivisions 2,
1.223, 4, 7; 124D.10, subdivisions 4, 23a, 24; 124D.111, subdivision 1; 124D.128,
1.23subdivisions 1, 2, 3; 124D.13, subdivisions 1, 2, 11, by adding a subdivision;
1.24124D.135, subdivisions 1, 3, 5, 6; 124D.15, subdivision 3; 124D.34, subdivision
1.257; 124D.454, subdivisions 2, 3; 124D.531, subdivisions 1, 4; 124D.65,
1.26subdivision 11; 124D.84, subdivision 1; 125A.11, subdivision 1; 125A.13;
1.27125A.14; 125A.39; 125A.42; 125A.44; 125A.45; 125A.63, by adding a
1.28subdivision; 125A.75, subdivisions 1, 4, by adding a subdivision; 125A.76,
1.29subdivisions 1, 2, 4, 5, by adding a subdivision; 125A.78; 125A.79, subdivisions
1.301, 5, 6, 8; 125B.15; 126C.01, subdivision 9; 126C.05, subdivision 1; 126C.10,
1.31subdivisions 1, 2, 2b, 13a, 24, 34, 35, 36; 126C.13, subdivision 4; 126C.15,
1.32subdivision 2; 126C.21, subdivisions 3, 5; 126C.41, by adding a subdivision;
1.33126C.44; 126C.48, subdivisions 2, 7; 127A.095, subdivision 2; 127A.441;
1.34127A.47, subdivision 7; 127A.49, subdivisions 2, 3; 128D.11, subdivision 3;
1.35134.31, by adding a subdivision; 134.355, subdivision 9; 169.01, by adding a
1.36subdivision; 169.443, by adding a subdivision; 169.447, subdivision 2; 169.4501,
1.37subdivisions 1, 2; 169.4502, subdivision 5; 169.4503, subdivisions 13, 20;
1.38171.02, subdivisions 2, 2a; 171.321, subdivision 4; 205A.05, subdivision 1;
1.39272.02, subdivision 64; 272.029, by adding a subdivision; 275.065, subdivisions
2.11, 1a; 517.08, subdivision 1c; Laws 2005, First Special Session chapter 5, article
2.21, sections 50, subdivision 2; 54, subdivisions 2, as amended, 4, 5, as amended,
2.36, as amended, 7, as amended, 8, as amended; article 2, sections 81, as amended;
2.484, subdivisions 2, as amended, 3, as amended, 4, as amended, 6, as amended,
2.510, as amended; article 3, section 18, subdivisions 2, as amended, 3, as amended,
2.64, as amended, 6, as amended; article 4, section 25, subdivisions 2, as amended,
2.73, as amended; article 5, section 17, subdivision 3, as amended; article 7, section
2.820, subdivisions 2, as amended, 3, as amended, 4, as amended; article 8, section
2.98, subdivisions 2, as amended, 5, as amended; article 9, section 4, subdivision 2;
2.10Laws 2006, chapter 263, article 3, section 15; Laws 2006, chapter 282, article 2,
2.11section 28, subdivision 4; article 3, section 4, subdivision 2; proposing coding for
2.12new law in Minnesota Statutes, chapters 119A; 121A; 124D; 127A; repealing
2.13Minnesota Statutes 2006, sections 120B.233; 121A.23; 123A.22, subdivision 11;
2.14123B.749; 123B.81, subdivision 8; 124D.06; 124D.081, subdivisions 1, 2, 3, 4,
2.155, 6, 9; 124D.175; 124D.454, subdivisions 4, 5, 6, 7; 124D.531, subdivision 5;
2.16124D.62; 125A.10; 125A.75, subdivision 6; 125A.76, subdivision 3; 126C.10,
2.17subdivisions 34, 35, 36; 169.4502, subdivision 15; 169.4503, subdivisions 17,
2.1818, 26.
2.19BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

2.20ARTICLE 1
2.21GENERAL EDUCATION

2.22    Section 1. Minnesota Statutes 2006, section 16A.152, subdivision 2, is amended to
2.23read:
2.24    Subd. 2. Additional revenues; priority. (a) If on the basis of a forecast of general
2.25fund revenues and expenditures, the commissioner of finance determines that there will be
2.26a positive unrestricted budgetary general fund balance at the close of the biennium, the
2.27commissioner of finance must allocate money to the following accounts and purposes in
2.28priority order:
2.29    (1) the cash flow account established in subdivision 1 until that account reaches
2.30$350,000,000;
2.31    (2) the budget reserve account established in subdivision 1a until that account
2.32reaches $653,000,000;
2.33    (3) the amount necessary to increase the aid payment schedule for school district
2.34aids and credits payments in section 127A.45 to not more than 90 percent rounded to the
2.35nearest tenth of a percent without exceeding the amount available and with any remaining
2.36funds deposited in the budget reserve; and
2.37    (4) the amount necessary to restore all or a portion of the net aid reductions under
2.38section 127A.441 and to reduce the property tax revenue recognition shift under section
2.39123B.75, subdivision 5 , paragraph (c) (b), and Laws 2003, First Special Session chapter
2.409, article 5, section 34, as amended by Laws 2003, First Special Session chapter 23,
2.41section 20, by the same amount.
3.1    (b) The amounts necessary to meet the requirements of this section are appropriated
3.2from the general fund within two weeks after the forecast is released or, in the case of
3.3transfers under paragraph (a), clauses (3) and (4), as necessary to meet the appropriations
3.4schedules otherwise established in statute.
3.5    (c) To the extent that a positive unrestricted budgetary general fund balance is
3.6projected, appropriations under this section must be made before section 16A.1522 takes
3.7effect.
3.8    (d) The commissioner of finance shall certify the total dollar amount of the
3.9reductions under paragraph (a), clauses (3) and (4), to the commissioner of education. The
3.10commissioner of education shall increase the aid payment percentage and reduce the
3.11property tax shift percentage by these amounts and apply those reductions to the current
3.12fiscal year and thereafter.

3.13    Sec. 2. Minnesota Statutes 2006, section 124D.128, subdivision 1, is amended to read:
3.14    Subdivision 1. Program established. A learning year program provides instruction
3.15throughout the year on an extended year calendar, extended school day calendar, or
3.16both. A pupil may participate in the program and accelerate attainment of grade level
3.17requirements or graduation requirements. A learning year program may begin after the
3.18close of the regular school year in June. The program may be for students in one or more
3.19grade levels from kindergarten through grade 12.

3.20    Sec. 3. Minnesota Statutes 2006, section 124D.128, subdivision 2, is amended to read:
3.21    Subd. 2. Commissioner designation. (a) An area learning center designated by the
3.22state must be a site. An area learning center must provide services to students who meet
3.23the criteria in section 124D.68 and who are enrolled in:
3.24    (1) a district that is served by the center; or
3.25    (2) a charter school located within the geographic boundaries of a district that is
3.26served by the center.
3.27    (b) A school district or charter school may be approved biennially by the state to
3.28provide additional instructional programming that results in grade level acceleration. The
3.29program must be designed so that students make grade progress during the school year
3.30and graduate prior to the students' peers.
3.31    (c) To be designated, a district, charter school, or center must demonstrate to the
3.32commissioner that it will:
3.33    (1) provide a program of instruction that permits pupils to receive instruction
3.34throughout the entire year; and
4.1    (2) develop and maintain a separate record system that, for purposes of section
4.2126C.05 , permits identification of membership attributable to pupils participating in the
4.3program. The record system and identification must ensure that the program will not
4.4have the effect of increasing the total number of pupil units average daily membership
4.5attributable to an individual pupil as a result of a learning year program. The record
4.6system must include the date the pupil originally enrolled in a learning year program, the
4.7pupil's grade level, the date of each grade promotion, the average daily membership
4.8generated in each grade level, the number of credits or standards earned, and the number
4.9needed to graduate.
4.10    (b) (d) A student who has not completed a school district's graduation requirements
4.11may continue to enroll in courses the student must complete in order to graduate until
4.12the student satisfies the district's graduation requirements or the student is 21 years old,
4.13whichever comes first.

4.14    Sec. 4. Minnesota Statutes 2006, section 124D.128, subdivision 3, is amended to read:
4.15    Subd. 3. Student planning. A district, charter school, or area learning center must
4.16inform all pupils and their parents about the learning year program and that participation
4.17in the program is optional. A continual learning plan must be developed at least annually
4.18for each pupil with the participation of the pupil, parent or guardian, teachers, and other
4.19staff; each participant must sign and date the plan. The plan must specify the learning
4.20experiences that must occur during the entire fiscal year and, are necessary for grade
4.21progression or, for secondary students, for graduation. The plan must include:
4.22    (1) the pupil's learning objectives and experiences, including courses or credits the
4.23pupil plans to complete each year and, for a secondary pupil, the graduation requirements
4.24the student must complete;
4.25    (2) the assessment measurements used to evaluate a pupil's objectives;
4.26    (3) requirements for grade level or other appropriate progression; and
4.27    (4) for pupils generating more than one average daily membership in a given grade,
4.28an indication of which objectives were unmet.
4.29The plan may be modified to conform to district schedule changes. The district may
4.30not modify the plan if the modification would result in delaying the student's time of
4.31graduation.

4.32    Sec. 5. Minnesota Statutes 2006, section 126C.05, subdivision 1, is amended to read:
4.33    Subdivision 1. Pupil unit. Pupil units for each Minnesota resident pupil under the
4.34age of 21 or who meets the requirements of section 120A.20, subdivision 1, paragraph
5.1(c), in average daily membership enrolled in the district of residence, in another district
5.2under sections 123A.05 to 123A.08, 124D.03, 124D.06, 124D.07, 124D.08, or 124D.68;
5.3in a charter school under section 124D.10; or for whom the resident district pays tuition
5.4under section 123A.18, 123A.22, 123A.30, 123A.32, 123A.44, 123A.488, 123B.88,
5.5subdivision 4
, 124D.04, 124D.05, 125A.03 to 125A.24, 125A.51, or 125A.65, shall be
5.6counted according to this subdivision.
5.7    (a) A prekindergarten pupil with a disability who is enrolled in a program approved
5.8by the commissioner and has an individual education plan is counted as the ratio of the
5.9number of hours of assessment and education service to 825 times 1.25 with a minimum
5.10average daily membership of 0.28, but not more than 1.25 pupil units.
5.11    (b) A prekindergarten pupil who is assessed but determined not to be disabled is
5.12counted as the ratio of the number of hours of assessment service to 825 times 1.25.
5.13    (c) A kindergarten pupil with a disability who is enrolled in a program approved
5.14by the commissioner is counted as the ratio of the number of hours of assessment and
5.15education services required in the fiscal year by the pupil's individual education program
5.16plan to 875, but not more than one.
5.17    (d) A kindergarten pupil who is not included in paragraph (c) is counted as .557 of a
5.18pupil unit for fiscal year 2000 and thereafter 0.627 pupil units.
5.19    (e) A pupil who is in any of grades 1 to 3 is counted as 1.115 pupil units for fiscal
5.20year 2000 and thereafter.
5.21    (f) A pupil who is any of grades 4 to 6 is counted as 1.06 pupil units for fiscal
5.22year 1995 and thereafter.
5.23    (g) A pupil who is in any of grades 7 to 12 is counted as 1.3 pupil units.
5.24    (h) A pupil who is in the postsecondary enrollment options program is counted
5.25as 1.3 pupil units.
5.26EFFECTIVE DATE.This section is effective for revenue for fiscal year 2009.

5.27    Sec. 6. Minnesota Statutes 2006, section 126C.10, subdivision 1, is amended to read:
5.28    Subdivision 1. General education revenue. (a) For fiscal year 2006 and later years
5.292007 and 2008, the general education revenue for each district equals the sum of the
5.30district's basic revenue, extended time revenue, gifted and talented revenue, basic skills
5.31revenue, training and experience revenue, secondary sparsity revenue, elementary sparsity
5.32revenue, transportation sparsity revenue, total operating capital revenue, equity revenue,
5.33alternative teacher compensation revenue under section 122A.415, and transition revenue.
5.34    (b) For fiscal year 2009 and later, the general education revenue for each district
5.35equals the sum of the district's basic revenue, extended time revenue, gifted and talented
6.1revenue, basic skills revenue, training and experience revenue, secondary sparsity revenue,
6.2elementary sparsity revenue, transportation sparsity revenue, total operating capital
6.3revenue, equity revenue, and transition revenue.

6.4    Sec. 7. Minnesota Statutes 2006, section 126C.10, subdivision 2, is amended to read:
6.5    Subd. 2. Basic revenue. The basic revenue for each district equals the formula
6.6allowance times the adjusted marginal cost pupil units for the school year. The formula
6.7allowance for fiscal year 2005 is $4,601. The formula allowance for fiscal year 2006 is
6.8$4,783. The formula allowance for fiscal year 2007 is $4,974 and the formula allowance
6.9for fiscal year 2008 and subsequent years is $4,974 $5,075.

6.10    Sec. 8. Minnesota Statutes 2006, section 126C.10, subdivision 2b, is amended to read:
6.11    Subd. 2b. Gifted and talented revenue. Gifted and talented revenue for each
6.12district equals $4 times the district's adjusted marginal cost pupil units for fiscal year 2006
6.13and $9 for fiscal year 2007 and later that school year times $13 for fiscal year 2008 and
6.14later. A school district must reserve gifted and talented revenue and, consistent with
6.15section 120B.15, must spend the revenue only to:
6.16    (1) identify gifted and talented students;
6.17    (2) provide education programs for gifted and talented students; or
6.18    (3) provide staff development to prepare teachers to best meet the unique needs
6.19of gifted and talented students.
6.20EFFECTIVE DATE.This section is effective for revenue for fiscal year 2008.

6.21    Sec. 9. Minnesota Statutes 2006, section 126C.10, subdivision 13a, is amended to read:
6.22    Subd. 13a. Operating capital levy. To obtain operating capital revenue for fiscal
6.23year 2007 and later, a district may levy an amount not more than the product of its
6.24operating capital revenue for the fiscal year times the lesser of one or the ratio of its
6.25adjusted net tax capacity per adjusted marginal cost pupil unit to the operating capital
6.26equalizing factor. The operating capital equalizing factor equals $22,222 for fiscal year
6.272006, and $10,700 for fiscal year 2007 and later.

6.28    Sec. 10. Minnesota Statutes 2006, section 126C.10, subdivision 24, is amended to read:
6.29    Subd. 24. Equity revenue. (a) A school district qualifies for equity revenue if:
6.30    (1) the school district's adjusted marginal cost pupil unit amount of basic revenue,
6.31supplemental revenue, transition revenue, and referendum revenue is less than the value of
7.1the school district at or immediately above the 95th percentile of school districts in its
7.2equity region for those revenue categories; and
7.3    (2) the school district's administrative offices are not located in a city of the first
7.4class on July 1, 1999.
7.5    (b) Equity revenue for a qualifying district that receives referendum revenue under
7.6section 126C.17, subdivision 4, equals the product of (1) the district's adjusted marginal
7.7cost pupil units for that year; times (2) the sum of (i) $13, plus (ii) $75, times the school
7.8district's equity index computed under subdivision 27.
7.9    (c) Equity revenue for a qualifying district that does not receive referendum revenue
7.10under section 126C.17, subdivision 4, equals the product of the district's adjusted marginal
7.11cost pupil units for that year times $13.
7.12    (d) A school district's equity revenue is increased by the greater of zero or an amount
7.13equal to the district's resident marginal cost pupil units times the difference between ten
7.14percent of the statewide average amount of referendum revenue per resident marginal cost
7.15pupil unit for that year and the district's referendum revenue per resident marginal cost
7.16pupil unit. A school district's revenue under this paragraph must not exceed $100,000 for
7.17that year.
7.18    (e) A school district's equity revenue for a school district located in the metro equity
7.19region equals the amount computed in paragraphs (b), (c), and (d) multiplied by 1.25.
7.20    (f) For fiscal year 2007 and later, notwithstanding paragraph (a), clause (2), a school
7.21district that has per pupil referendum revenue below the 95th percentile qualifies for
7.22additional equity revenue equal to $46 times its adjusted marginal cost pupil unit units.
7.23    (g) A district that does not qualify for revenue under paragraph (f) qualifies for
7.24equity revenue equal to one-half of the per pupil allowance in paragraph (f) $46 times its
7.25adjusted marginal cost pupil units.
7.26EFFECTIVE DATE.This section is effective for revenue for fiscal year 2008.

7.27    Sec. 11. Minnesota Statutes 2006, section 126C.10, subdivision 34, is amended to read:
7.28    Subd. 34. Basic alternative teacher compensation aid. (a) For fiscal year 2006,
7.29the basic alternative teacher compensation aid for a school district or an intermediate
7.30school district with a plan approved under section 122A.414, subdivision 2b, equals the
7.31alternative teacher compensation revenue under section 122A.415, subdivision 1. The
7.32basic alternative teacher compensation aid for a charter school with an approved plan
7.33under section 122A.414, subdivision 2b, equals $260 times the number of pupils enrolled
7.34in the school on October 1 of the previous school year, or on October 1 of the current
7.35fiscal year for a charter school in the first year of operation.
8.1    (b) For fiscal year years 2007 and later 2008, the basic alternative teacher
8.2compensation aid for a school district with a plan approved under section 122A.414,
8.3subdivision 2b
, equals 73.1 percent of the alternative teacher compensation revenue
8.4under section 122A.415, subdivision 1. The basic alternative teacher compensation aid
8.5for an intermediate school district or charter school with a plan approved under section
8.6122A.414, subdivisions 2a and 2b , if the recipient is a charter school, equals $260 times
8.7the number of pupils enrolled in the school on October 1 of the previous fiscal year, or on
8.8October 1 of the current fiscal year for a charter school in the first year of operation, times
8.9the ratio of the sum of the alternative teacher compensation aid and alternative teacher
8.10compensation levy for all participating school districts to the maximum alternative teacher
8.11compensation revenue for those districts under section 122A.415, subdivision 1.
8.12    (c) (b) Notwithstanding paragraphs (a) and (b) and section 122A.415, subdivision
8.131
, the state total basic alternative teacher compensation aid entitlement must not exceed
8.14$19,329,000 for fiscal year 2006 and $75,636,000 for fiscal year 2007 and later and
8.15$44,159,000 for fiscal year 2008. The commissioner must limit the amount of alternative
8.16teacher compensation aid approved under section 122A.415 so as not to exceed these
8.17limits.

8.18    Sec. 12. Minnesota Statutes 2006, section 126C.10, subdivision 35, is amended to read:
8.19    Subd. 35. Alternative teacher compensation levy. For fiscal year years 2007
8.20and later 2008, the alternative teacher compensation levy for a district receiving basic
8.21alternative teacher compensation aid equals the product of (1) the difference between the
8.22district's alternative teacher compensation revenue and the district's basic alternative
8.23teacher compensation aid times (2) the lesser of one or the ratio of the district's adjusted
8.24net tax capacity per adjusted pupil unit to $5,913.

8.25    Sec. 13. Minnesota Statutes 2006, section 126C.10, subdivision 36, is amended to read:
8.26    Subd. 36. Alternative teacher compensation aid. (a) For fiscal year years 2007
8.27and later 2008, a district's alternative teacher compensation equalization aid equals the
8.28district's alternative teacher compensation revenue minus the district's basic alternative
8.29teacher compensation aid minus the district's alternative teacher compensation levy. If a
8.30district does not levy the entire amount permitted, the alternative teacher compensation
8.31equalization aid must be reduced in proportion to the actual amount levied.
8.32    (b) A district's alternative teacher compensation aid equals the sum of the
8.33district's basic alternative teacher compensation aid and the district's alternative teacher
8.34compensation equalization aid.

9.1    Sec. 14. Minnesota Statutes 2006, section 126C.13, subdivision 4, is amended to read:
9.2    Subd. 4. General education aid. (a) For fiscal year 2006, a district's general
9.3education aid is the sum of the following amounts:
9.4    (1) general education revenue, excluding equity revenue, total operating capital, and
9.5transition revenue;
9.6    (2) operating capital aid according to section 126C.10, subdivision 13b;
9.7    (3) equity aid according to section 126C.10, subdivision 30;
9.8    (4) transition aid according to section 126C.10, subdivision 33;
9.9    (5) shared time aid according to section 126C.01, subdivision 7;
9.10    (6) referendum aid according to section 126C.17; and
9.11    (7) online learning aid according to section 124D.096.
9.12    (b) For fiscal year years 2007 and later 2008, a district's general education aid is the
9.13sum of the following amounts:
9.14    (1) general education revenue, excluding equity revenue, total operating capital
9.15revenue, alternative teacher compensation revenue, and transition revenue;
9.16    (2) operating capital aid under section 126C.10, subdivision 13b;
9.17    (3) equity aid under section 126C.10, subdivision 30;
9.18    (4) alternative teacher compensation aid under section 126C.10, subdivision 36;
9.19    (5) transition aid under section 126C.10, subdivision 33;
9.20    (6) shared time aid under section 126C.01, subdivision 7;
9.21    (7) referendum aid under section 126C.17, subdivisions 7 and 7a; and
9.22    (8) online learning aid according to section 124D.096.
9.23    (b) For fiscal year 2009 and later, a district's general education aid is the sum of
9.24the following amounts:
9.25    (1) general education revenue, excluding equity revenue, total operating capital
9.26revenue, alternative teacher compensation revenue, and transition revenue;
9.27    (2) operating capital aid under section 126C.10, subdivision 13b;
9.28    (3) equity aid under section 126C.10, subdivision 30;
9.29    (4) transition aid under section 126C.10, subdivision 33;
9.30    (5) shared time aid under section 126C.01, subdivision 7;
9.31    (6) referendum aid under section 126C.17, subdivisions 7 and 7a; and
9.32    (7) online learning aid according to section 124D.096.

9.33    Sec. 15. Minnesota Statutes 2006, section 126C.21, subdivision 3, is amended to read:
9.34    Subd. 3. County apportionment deduction. Each year the amount of money
9.35apportioned to a district for that year pursuant to section sections 127A.34, subdivision 2,
10.1and 272.029, subdivision 6, must be deducted from the general education aid earned by
10.2that district for the same year or from aid earned from other state sources.
10.3EFFECTIVE DATE.This section is effective for revenue for fiscal year 2009.

10.4    Sec. 16. Minnesota Statutes 2006, section 126C.21, subdivision 5, is amended to read:
10.5    Subd. 5. Adjustment for failure to meet federal maintenance of effort. (a) The
10.6general education aid paid to a school district or charter school that failed to meet federal
10.7special education maintenance of effort for the previous fiscal year must be reduced by the
10.8amount that must be paid to the federal government due to the shortfall.
10.9    (b) The general education aid paid to school districts that were members of a
10.10cooperative that failed to meet federal special education maintenance of effort must be
10.11reduced by the amount that must be paid to the federal government due to the shortfall.
10.12The commissioner must apportion the aid reduction amount to the member school districts
10.13based on each district's individual shortfall in maintaining effort, and on each member
10.14district's proportionate share of any shortfall in expenditures made by the cooperative.
10.15Each district's proportionate share of shortfall in expenditures made by the cooperative
10.16must be calculated using the adjusted marginal pupil units of each member school district.
10.17    (c) The amounts recovered under this subdivision shall be paid to the federal
10.18government to meet the state's obligations resulting from the district's or, charter school's,
10.19or cooperative's failure to meet federal special education maintenance of effort.
10.20EFFECTIVE DATE.This section is effective the day following final enactment.

10.21    Sec. 17. Minnesota Statutes 2006, section 126C.44, is amended to read:
10.22126C.44 SAFE SCHOOLS LEVY.
10.23    (a) Each district may make a levy on all taxable property located within the district
10.24for the purposes specified in this section. The maximum amount which may be levied for
10.25all costs under this section shall be equal to $27 $30 multiplied by the district's adjusted
10.26marginal cost pupil units for the school year. The proceeds of the levy must be reserved
10.27and used for directly funding the following purposes or for reimbursing the cities and
10.28counties who contract with the district for the following purposes: (1) to pay the costs
10.29incurred for the salaries, benefits, and transportation costs of peace officers and sheriffs for
10.30liaison in services in the district's schools; (2) to pay the costs for a drug abuse prevention
10.31program as defined in section 609.101, subdivision 3, paragraph (e), in the elementary
10.32schools; (3) to pay the costs for a gang resistance education training curriculum in the
10.33district's schools; (4) to pay the costs for security in the district's schools and on school
11.1property; or (5) to pay the costs for other crime prevention, drug abuse, student and staff
11.2safety, voluntary opt-in suicide prevention tools, and violence prevention measures taken
11.3by the school district; or (6) to pay costs for licensed school counselors, licensed school
11.4nurses, licensed school social workers, licensed school psychologists, and licensed alcohol
11.5and chemical dependency counselors to help provide early responses to problems. For
11.6expenditures under clause (1), the district must initially attempt to contract for services to
11.7be provided by peace officers or sheriffs with the police department of each city or the
11.8sheriff's department of the county within the district containing the school receiving the
11.9services. If a local police department or a county sheriff's department does not wish
11.10to provide the necessary services, the district may contract for these services with any
11.11other police or sheriff's department located entirely or partially within the school district's
11.12boundaries.
11.13    (b) A school district that is a member of an intermediate school district may
11.14include in its authority under this section the costs associated with safe schools activities
11.15authorized under paragraph (a) for intermediate school district programs. This authority
11.16must not exceed $10 times the adjusted marginal cost pupil units of the member districts.
11.17This authority is in addition to any other authority authorized under this section. Revenue
11.18raised under this paragraph must be transferred to the intermediate school district.
11.19    (c) If a school district spends safe schools levy proceeds under paragraph (a), clause
11.20(6), the district must annually certify that its total spending on services provided by the
11.21employees listed in paragraph (a), clause (6), is not less than the sum of its expenditures
11.22for these purposes in the previous year plus the amount spent under this section.
11.23EFFECTIVE DATE.This section is effective for taxes payable in 2008.

11.24    Sec. 18. Minnesota Statutes 2006, section 127A.441, is amended to read:
11.25127A.441 AID REDUCTION; LEVY REVENUE RECOGNITION CHANGE.
11.26    Each year, the state aids payable to any school district for that fiscal year that are
11.27recognized as revenue in the school district's general and community service funds shall
11.28be adjusted by an amount equal to (1) the amount the district recognized as revenue for the
11.29prior fiscal year pursuant to section 123B.75, subdivision 5, paragraph (b) or (c), minus (2)
11.30the amount the district recognized as revenue for the current fiscal year pursuant to section
11.31123B.75, subdivision 5 , paragraph (c) (b). For purposes of making the aid adjustments
11.32under this section, the amount the district recognizes as revenue for either the prior fiscal
11.33year or the current fiscal year pursuant to section 123B.75, subdivision 5, paragraph (b)
11.34or (c), shall not include any amount levied pursuant to section 124D.86, subdivision 4,
12.1for school districts receiving revenue under sections 124D.86, subdivision 3, clauses (1),
12.2(2), and (3); 126C.41, subdivisions 1, 2, and 3, paragraphs (b), (c), and (d); 126C.43,
12.3subdivision 2
; 126C.457; and 126C.48, subdivision 6. Payment from the permanent
12.4school fund shall not be adjusted pursuant to this section. The school district shall be
12.5notified of the amount of the adjustment made to each payment pursuant to this section.

12.6    Sec. 19. Minnesota Statutes 2006, section 127A.47, subdivision 7, is amended to read:
12.7    Subd. 7. Alternative attendance programs. The general education aid and special
12.8education aid for districts must be adjusted for each pupil attending a nonresident district
12.9under sections 123A.05 to 123A.08, 124D.03, 124D.06, 124D.08, and 124D.68. The
12.10adjustments must be made according to this subdivision.
12.11    (a) General education aid paid to a resident district must be reduced by an amount
12.12equal to the referendum equalization aid attributable to the pupil in the resident district.
12.13    (b) General education aid paid to a district serving a pupil in programs listed in this
12.14subdivision must be increased by an amount equal to the greater of (1) the referendum
12.15equalization aid attributable to the pupil in the nonresident district; or (2) the product of
12.16the district's open enrollment concentration index, the maximum amount of referendum
12.17revenue in the first tier, and the district's net open enrollment pupil units for that year. A
12.18district's open enrollment concentration index equals the greater of: (i) zero, or (ii) the
12.19lesser of 1.0, or the difference between the district's ratio of open enrollment pupil units
12.20served to its resident pupil units for that year and 0.2. This clause does not apply to a
12.21school district where more than 50 percent of the open enrollment students are enrolled
12.22solely in online learning courses.
12.23    (c) If the amount of the reduction to be made from the general education aid of the
12.24resident district is greater than the amount of general education aid otherwise due the
12.25district, the excess reduction must be made from other state aids due the district.
12.26    (d) For fiscal year 2006, the district of residence must pay tuition to a district or an
12.27area learning center, operated according to paragraph (f), providing special instruction and
12.28services to a pupil with a disability, as defined in section 125A.02, or a pupil, as defined in
12.29section 125A.51, who is enrolled in a program listed in this subdivision. The tuition must
12.30be equal to (1) the actual cost of providing special instruction and services to the pupil,
12.31including a proportionate amount for special transportation and unreimbursed building
12.32lease and debt service costs for facilities used primarily for special education, minus (2)
12.33if the pupil receives special instruction and services outside the regular classroom for
12.34more than 60 percent of the school day, the amount of general education revenue and
12.35referendum aid attributable to that pupil for the portion of time the pupil receives special
13.1instruction and services outside of the regular classroom, excluding portions attributable to
13.2district and school administration, district support services, operations and maintenance,
13.3capital expenditures, and pupil transportation, minus (3) special education aid attributable
13.4to that pupil, that is received by the district providing special instruction and services. For
13.5purposes of this paragraph, general education revenue and referendum aid attributable to a
13.6pupil must be calculated using the serving district's average general education revenue
13.7and referendum aid per adjusted pupil unit.
13.8    (e) For fiscal year 2007 and later, special education aid paid to a resident district
13.9must be reduced by an amount equal to (1) the actual cost of providing special instruction
13.10and services, including special transportation and unreimbursed building lease and debt
13.11service costs for facilities used primarily for special education, for a pupil with a disability,
13.12as defined in section 125A.02, or a pupil, as defined in section 125A.51, who is enrolled
13.13in a program listed in this subdivision, minus (2) if the pupil receives special instruction
13.14and services outside the regular classroom for more than 60 percent of the school day,
13.15the amount of general education revenue and referendum aid attributable to that pupil
13.16for the portion of time the pupil receives special instruction and services outside of the
13.17regular classroom, excluding portions attributable to district and school administration,
13.18district support services, operations and maintenance, capital expenditures, and pupil
13.19transportation, minus (3) special education aid attributable to that pupil, that is received
13.20by the district providing special instruction and services. For purposes of this paragraph,
13.21general education revenue and referendum aid attributable to a pupil must be calculated
13.22using the serving district's average general education revenue and referendum aid per
13.23adjusted pupil unit. Special education aid paid to the district or cooperative providing
13.24special instruction and services for the pupil, or to the fiscal agent district for a cooperative,
13.25must be increased by the amount of the reduction in the aid paid to the resident district. If
13.26the resident district's special education aid is insufficient to make the full adjustment, the
13.27remaining adjustment shall be made to other state aids due to the district.
13.28    (f) An area learning center operated by a service cooperative, intermediate district,
13.29education district, or a joint powers cooperative may elect through the action of the
13.30constituent boards to charge the resident district tuition for pupils rather than to have the
13.31general education revenue paid to a fiscal agent school district. Except as provided in
13.32paragraph (d) or (e), the district of residence must pay tuition equal to at least 90 percent
13.33of the district average general education revenue per pupil unit minus an amount equal to
13.34the product of the formula allowance according to section 126C.10, subdivision 2, times
13.35.0485, calculated without basic skills revenue and transportation sparsity revenue, times
14.1the number of pupil units for pupils attending the area learning center, plus the amount of
14.2compensatory revenue generated by pupils attending the area learning center.
14.3EFFECTIVE DATE.This section is effective for revenue for fiscal year 2008.

14.4    Sec. 20. Minnesota Statutes 2006, section 127A.49, subdivision 2, is amended to read:
14.5    Subd. 2. Abatements. Whenever by virtue of chapter 278, sections 270C.86,
14.6375.192 , or otherwise, the net tax capacity or referendum market value of any district for
14.7any taxable year is changed after the taxes for that year have been spread by the county
14.8auditor and the local tax rate as determined by the county auditor based upon the original
14.9net tax capacity is applied upon the changed net tax capacities, the county auditor shall,
14.10prior to February 1 of each year, certify to the commissioner of education the amount of
14.11any resulting net revenue loss that accrued to the district during the preceding year. Each
14.12year, the commissioner shall pay an abatement adjustment to the district in an amount
14.13calculated according to the provisions of this subdivision. This amount shall be deducted
14.14from the amount of the levy authorized by section 126C.46. The amount of the abatement
14.15adjustment must be the product of:
14.16    (1) the net revenue loss as certified by the county auditor, times
14.17    (2) the ratio of:
14.18    (i) the sum of the amounts of the district's certified levy in the third preceding year
14.19according to the following:
14.20    (A) section 123B.57, if the district received health and safety aid according to that
14.21section for the second preceding year;
14.22    (B) section 124D.20, if the district received aid for community education programs
14.23according to that section for the second preceding year;
14.24    (C) section 124D.135, subdivision 3, if the district received early childhood family
14.25education aid according to section 124D.135 for the second preceding year; and
14.26    (D) section 126C.17, subdivision 6, if the district received referendum equalization
14.27aid according to that section for the second preceding year;
14.28    (E) section 126C.13, if the district received general education aid according to
14.29section 126C.13, subdivision 4, paragraph (b), clause (1), of that section in the second
14.30preceding year;
14.31    (F) section 126C.10, subdivision 13a, if the district received operating capital aid
14.32according to section 126C.10, subdivision 13b, in the second preceding year;
14.33    (G) section 126C.10, subdivision 29, if the district received equity aid according to
14.34section 126C.10, subdivision 30, in the second preceding year;
15.1    (H) section 126C.10, subdivision 32, if the district received transition aid according
15.2to section 126C.10, subdivision 33, in the second preceding year;
15.3    (I) section 123B.53, subdivision 5, if the district received debt service equalization
15.4aid according to section 123B.53, subdivision 6, in the second preceding year;
15.5    (J) section 124D.22, subdivision 3, if the district received school-age care aid
15.6according to section 124D.22, subdivision 4, in the second preceding year;
15.7    (K) section 123B.591, subdivision 3, if the district received deferred maintenance
15.8aid according to section 123B.591, subdivision 4, in the second preceding year; and
15.9    (L) section 126C.10, subdivision 35, if the district received alternative teacher
15.10compensation equalization aid according to section 126C.10, subdivision 36, paragraph
15.11(a), in the second preceding year, or section 122A.415, subdivision 5, if the district
15.12received alternative compensation equalization aid according to section 122A.415,
15.13subdivision 6, in the second preceding year; to
15.14    (ii) the total amount of the district's certified levy in the third preceding December,
15.15plus or minus auditor's adjustments.

15.16    Sec. 21. Minnesota Statutes 2006, section 127A.49, subdivision 3, is amended to read:
15.17    Subd. 3. Excess tax increment. (a) If a return of excess tax increment is made to a
15.18district pursuant to sections 469.176, subdivision 2, and 469.177, subdivision 9, or upon
15.19decertification of a tax increment district, the school district's aid and levy limitations
15.20must be adjusted for the fiscal year in which the excess tax increment is paid under the
15.21provisions of this subdivision.
15.22    (b) An amount must be subtracted from the district's aid for the current fiscal year
15.23equal to the product of:
15.24    (1) the amount of the payment of excess tax increment to the district, times
15.25    (2) the ratio of:
15.26    (i) the sum of the amounts of the district's certified levy for the fiscal year in which
15.27the excess tax increment is paid according to the following:
15.28    (A) section 123B.57, if the district received health and safety aid according to that
15.29section for the second preceding year;
15.30    (B) section 124D.20, if the district received aid for community education programs
15.31according to that section for the second preceding year;
15.32    (C) section 124D.135, subdivision 3, if the district received early childhood family
15.33education aid according to section 124D.135 for the second preceding year; and
15.34    (D) section 126C.17, subdivision 6, if the district received referendum equalization
15.35aid according to that section for the second preceding year;
16.1    (E) section 126C.13, if the district received general education aid according to
16.2section 126C.13, subdivision 4, paragraph (b), clause (1), of that section in the second
16.3preceding year;
16.4    (F) section 126C.10, subdivision 13a, if the district received operating capital aid
16.5according to section 126C.10, subdivision 13b, in the second preceding year;
16.6    (G) section 126C.10, subdivision 29, if the district received equity aid according to
16.7section 126C.10, subdivision 30, in the second preceding year;
16.8    (H) section 126C.10, subdivision 32, if the district received transition aid according
16.9to section 126C.10, subdivision 33, in the second preceding year;
16.10    (I) section 123B.53, subdivision 5, if the district received debt service equalization
16.11aid according to section 123B.53, subdivision 6, in the second preceding year;
16.12    (J) section 124D.22, subdivision 3, if the district received school-age care aid
16.13according to section 124D.22, subdivision 4, in the second preceding year;
16.14    (K) section 123B.591, subdivision 3, if the district received deferred maintenance
16.15aid according to section 123B.591, subdivision 4, in the second preceding year; and
16.16    (L) section 126C.10, subdivision 35, if the district received alternative teacher
16.17compensation equalization aid according to section 126C.10, subdivision 36, paragraph
16.18(a), in the second preceding year, or section 122A.415, subdivision 5, if the district
16.19received alternative compensation equalization aid according to section 122A.415,
16.20subdivision 6, in the second preceding year; to
16.21    (ii) the total amount of the district's certified levy for the fiscal year, plus or minus
16.22auditor's adjustments.
16.23    (c) An amount must be subtracted from the school district's levy limitation for the
16.24next levy certified equal to the difference between:
16.25    (1) the amount of the distribution of excess increment; and
16.26    (2) the amount subtracted from aid pursuant to clause (a).
16.27    If the aid and levy reductions required by this subdivision cannot be made to the aid
16.28for the fiscal year specified or to the levy specified, the reductions must be made from
16.29aid for subsequent fiscal years, and from subsequent levies. The school district must use
16.30the payment of excess tax increment to replace the aid and levy revenue reduced under
16.31this subdivision.
16.32    (d) This subdivision applies only to the total amount of excess increments received
16.33by a district for a calendar year that exceeds $25,000.

16.34    Sec. 22. Minnesota Statutes 2006, section 205A.05, subdivision 1, is amended to read:
17.1    Subdivision 1. Questions. Special elections must be held for a school district on a
17.2question on which the voters are authorized by law to pass judgment. The school board
17.3may on its own motion call a special election to vote on any matter requiring approval of
17.4the voters of a district. Upon petition of 50 or more voters of the school district or five
17.5percent of the number of voters voting at the preceding regular school district general
17.6election, whichever is greater, the school board shall by resolution call a special election
17.7to vote on any matter requiring approval of the voters of a district. A question is carried
17.8only with the majority in its favor required by law. The election officials for a special
17.9election are the same as for the most recent school district general election unless changed
17.10according to law. Otherwise, special elections must be conducted and the returns made
17.11in the manner provided for the school district general election. A special election may
17.12not be held during the 30 days before and the 30 days after the state primary, during the
17.1330 days before and the 40 days after the state general election. In addition, a special
17.14election may not be held during the 20 days before and the 20 days after any regularly
17.15scheduled election of a municipality wholly or partially within the school district.
17.16Notwithstanding any other law to the contrary, the time period in which a special election
17.17must be conducted under any other law may be extended by the school board to conform
17.18with the requirements of this subdivision.
17.19EFFECTIVE DATE.This section is effective the day following final enactment
17.20and applies to petitions for special election submitted 30 days after that date and later.

17.21    Sec. 23. Minnesota Statutes 2006, section 272.029, is amended by adding a subdivision
17.22to read:
17.23    Subd. 6a. Report to commissioner of education. The county auditor, on the first
17.24Wednesday after such settlement, shall report to the commissioner the amount distributed
17.25to each school district under subdivision 6.
17.26EFFECTIVE DATE.This section is effective July 1, 2008, for settlements made
17.27during fiscal year 2009.

17.28    Sec. 24. Laws 2005, First Special Session chapter 5, article 1, section 50, subdivision
17.292, is amended to read:
17.30    Subd. 2. Application process. Independent School Districts Nos. 11,
17.31Anoka-Hennepin; 279, Osseo; 281, Robbinsdale; 286, Brooklyn Center; 535, Rochester;
17.32and 833, South Washington may submit an application to the commissioner of education
17.33by August 15, 2005, for a plan to allocate compensatory revenue to school sites based
18.1on student performance. The application must include a written resolution approved by
18.2the school board that: (1) identifies the test results that will be used to assess student
18.3performance; (2) describes the method for distribution of compensatory revenue to the
18.4school sites; and (3) summarizes the evaluation procedure the district will use to determine
18.5if the redistribution of compensatory revenue improves overall student performance. The
18.6application must be submitted in the form and manner specified by the commissioner. The
18.7commissioner must notify the selected school districts by September 1, 2005 within 90
18.8days of receipt of their application.
18.9EFFECTIVE DATE.This section is effective the day following final enactment.

18.10    Sec. 25. Laws 2006, chapter 282, article 3, section 4, subdivision 2, is amended to read:
18.11    Subd. 2. Onetime energy assistance aid. For onetime energy assistance aid under
18.12section 3:
18.13
18.14
$
3,495,000
.....
2007
2006
18.15EFFECTIVE DATE.This section is effective the day following final enactment
18.16and applies retroactively to fiscal year 2006.

18.17    Sec. 26. SCHOOL FINANCE REFORM; TASK FORCE ESTABLISHED.
18.18    Subdivision 1. Task force established. A School Finance Reform Task Force
18.19is established.
18.20    Subd. 2. Task force goals. The goals of the School Finance Reform Task Force
18.21include:
18.22    (1) creating a standard and index to ensure that the formula remains adequate over
18.23time;
18.24    (2) simplifying the remaining school formulas;
18.25    (3) analyzing categorical funding formulas, including but not limited to pupil
18.26transportation, compensatory revenue, and limited English proficiency revenue;
18.27    (4) establishing a schedule for implementation of the other new formulas; and
18.28    (5) examining the role of the regional delivery structure including the functions
18.29performed by intermediate school districts, service cooperatives, education districts, and
18.30other cooperative organizations.
18.31    Subd. 3. Task force members. The task force consists of nine members.
18.32Membership includes the commissioner of education, four members appointed according
19.1to the rules of the senate by the senate Committee on Rules and Administration
19.2Subcommittee on Committees, and four members appointed by the speaker of the house.
19.3    Subd. 4. Task force recommendations. The task force must submit a report to the
19.4education committees of the legislature by January 15, 2008, describing the formula
19.5recommendations according to the goals it has established.
19.6EFFECTIVE DATE.This section is effective the day following final enactment.

19.7    Sec. 27. LIMITATION ON NEW ALTERNATIVE COMPENSATION SCHOOL
19.8DISTRICTS, FISCAL YEARS 2008-2011.
19.9    Notwithstanding Minnesota Statutes, sections 122A.413; 122A.414; 122A.415;
19.10122A.416; and 126C.10, subdivisions 34, 35, and 36, the Department of Education must
19.11limit the participation in the alternative teacher pay program to those district sites and
19.12charter schools that received alternative compensation revenue in fiscal year 2007 or those
19.13district sites and charter schools that have an approved plan, under Minnesota Statutes,
19.14section 122A.414, by March 10, 2007, for fiscal year 2008 alternative compensation
19.15participation. This limitation applies to fiscal year 2008 through fiscal year 2011. No
19.16additional district sites or charter schools may be approved until after June 30, 2012.

19.17    Sec. 28. FISCAL YEARS 2008 AND 2009 DECLINING PUPIL UNIT AID,
19.18RED LAKE.
19.19    For fiscal years 2008 and 2009 only, Independent School District No. 38, Red Lake,
19.20is eligible for declining pupil unit aid equal to the greater of zero or the product of the
19.21basic formula allowance times the difference between the district's adjusted marginal cost
19.22pupil units for fiscal year 2005 and the district's adjusted marginal cost pupil units for that
19.23fiscal year times .75. Notwithstanding Minnesota Statutes, section 126C.13, the declining
19.24pupil unit aid must be included in calculating the district's general education aid.

19.25    Sec. 29. APPROPRIATIONS.
19.26    Subdivision 1. Department of Education. The sums indicated in this section are
19.27appropriated from the general fund to the Department of Education for the fiscal years
19.28designated.
19.29    Subd. 2. General education aid. For general education aid under Minnesota
19.30Statutes, section 126C.13, subdivision 4:
19.31
$
5,465,539,000
.....
2008
19.32
$
5,467,878,000
.....
2009
20.1    The 2008 appropriation includes $531,733,000 for 2007 and $4,933,806,000 for
20.22008.
20.3    The 2009 appropriation includes $548,200,000 for 2008 and $4,919,678,000 for
20.42009.
20.5     The fiscal year 2009 appropriation includes $75,000,000 attributable to the education
20.6improvement account in the general fund.
20.7    Subd. 3. Referendum tax base replacement aid. For referendum tax base
20.8replacement aid under Minnesota Statutes, section 126C.17, subdivision 7a:
20.9
$
870,000
.....
2008
20.10    The 2008 appropriation includes $870,000 for 2007 and $0 for 2008.
20.11    Subd. 4. Enrollment options transportation. For transportation of pupils attending
20.12postsecondary institutions under Minnesota Statutes, section 124D.09, or for transportation
20.13of pupils attending nonresident districts under Minnesota Statutes, section 124D.03:
20.14
$
95,000
.....
2008
20.15
$
97,000
.....
2009
20.16    Subd. 5. Abatement revenue. For abatement aid under Minnesota Statutes, section
20.17127A.49:
20.18
$
1,343,000
.....
2008
20.19
$
1,347,000
.....
2009
20.20    The 2008 appropriation includes $76,000 for 2007 and $1,267,000 for 2008.
20.21    The 2009 appropriation includes $140,000 for 2008 and $1,207,000 for 2009.
20.22    Subd. 6. Consolidation transition. For districts consolidating under Minnesota
20.23Statutes, section 123A.485:
20.24
$
565,000
.....
2008
20.25
$
212,000
.....
2009
20.26    The 2008 appropriation includes $43,000 for 2007 and $522,000 for 2008.
20.27    The 2009 appropriation includes $57,000 for 2008 and $155,000 for 2009.
20.28    Subd. 7. Nonpublic pupil education aid. For nonpublic pupil education aid under
20.29Minnesota Statutes, sections 123B.40 to 123B.43, and 123B.87:
20.30
$
16,174,000
.....
2008
20.31
$
16,435,000
.....
2009
20.32    The 2008 appropriation includes $1,606,000 for 2007 and $14,568,000 for 2008.
20.33    The 2009 appropriation includes $1,618,000 for 2008 and $14,817,000 for 2009.
21.1    Subd. 8. Nonpublic pupil transportation. For nonpublic pupil transportation aid
21.2under Minnesota Statutes, section 123B.92, subdivision 9:
21.3
$
21,167,000
.....
2008
21.4
$
20,780,000
.....
2009
21.5    The 2008 appropriation includes $2,124,000 for 2007 and $19,043,000 for 2008.
21.6    The 2009 appropriation includes $2,115,000 for 2008 and $18,665,000 for 2009.
21.7    Subd. 9. One-room schoolhouse. For a grant to Independent School District No.
21.8690, Warroad, to operate the Angle Inlet School:
21.9
$
65,000
.....
2008
21.10
$
65,000
.....
2009
21.11    Subd. 10. Compensatory revenue pilot project. For grants for participation in the
21.12compensatory revenue pilot program under Laws 2005, First Special Session chapter 5,
21.13article 1, section 50:
21.14
$
2,175,000
.....
2008
21.15
$
2,175,000
.....
2009
21.16    Of this amount, $1,500,000 in each year is for a grant to Independent School District
21.17No. 11, Anoka-Hennepin; $210,000 in each year is for a grant to Independent School
21.18District No. 279, Osseo; $160,000 in each year is for a grant to Independent School
21.19District No. 281, Robbinsdale; $75,000 in each year is for a grant to Independent School
21.20District No. 286, Brooklyn Center; $165,000 in each year is for a grant to Independent
21.21School District No. 535, Rochester; and $65,000 in each year is for a grant to Independent
21.22School District No. 833, South Washington.
21.23    If a grant to a specific school district is not awarded, the commissioner may increase
21.24the aid amounts to any of the remaining participating school districts.
21.25    This appropriation is part of the base budget for subsequent fiscal years.
21.26    Subd. 11. Declining pupil unit aid; Browns Valley. For declining pupil unit aid
21.27to Independent School District No. 801, Browns Valley:
21.28
$
100,000
.....
2008
21.29
$
100,000
.....
2009
21.30    This is a onetime appropriation.
21.31    Subd. 12. Education finance study. For a contract to hire an independent contractor
21.32to assist the education finance task force:
21.33
$
75,000
.....
2008
22.1    This is a onetime appropriation.
22.2    Subd. 13. Declining pupil aid, Red Lake. For a grant to Independent School
22.3District No. 38, Red Lake, for declining pupil aid:
22.4
$
455,000
.....
2008
22.5
$
50,000
.....
2009
22.6    Subd. 14. Declining pupil aid McGregor. For declining pupil aid for Independent
22.7School District No. 4, McGregor:
22.8
$
100,000
.....
2008
22.9    Any balance in the first year does not cancel but is available in the second year.

22.10    Sec. 30. REVISOR'S INSTRUCTION.
22.11    In Minnesota Statutes, the revisor of statutes shall correct any incorrect
22.12cross-references resulting from the repeal of Minnesota Statutes, section 124D.06.

22.13    Sec. 31. REPEALER.
22.14(a) Minnesota Statutes 2006, section 124D.06, is repealed.
22.15(b) Minnesota Statutes 2006, section 126C.10, subdivisions 34, 35, and 36, are
22.16repealed for revenue for fiscal year 2009 and later.
22.17(c) Minnesota Statutes 2006, section 124D.081, subdivisions 1, 2, 3, 4, 5, 6, and
22.189, are repealed effective for revenue for fiscal year 2009.

22.19ARTICLE 2
22.20EDUCATION EXCELLENCE

22.21    Section 1. Minnesota Statutes 2006, section 119A.50, is amended by adding a
22.22subdivision to read:
22.23    Subd. 3. Early childhood literacy programs. (a) A research-based early childhood
22.24literacy program premised on actively involved parents, ongoing professional staff
22.25development, and high quality early literacy program standards is established to increase
22.26the literacy skills of children participating in Head Start to prepare them to be successful
22.27readers and to increase families' participation in providing early literacy experiences to
22.28their children. Program providers must:
22.29    (1) work to prepare children to be successful learners;
22.30    (2) work to close the achievement gap for at-risk children;
23.1    (3) use an integrated approach to early literacy that daily offers a literacy-rich
23.2classroom learning environment composed of books, writing materials, writing centers,
23.3labels, rhyming, and other related literacy materials and opportunities;
23.4    (4) support children's home language while helping the children master English and
23.5use multiple literacy strategies to provide a cultural bridge between home and school;
23.6    (5) use literacy mentors, ongoing literacy groups, and other teachers and staff to
23.7provide appropriate, extensive professional development opportunities in early literacy
23.8and classroom strategies for preschool teachers and other preschool staff;
23.9    (6) use ongoing data-based assessments that enable preschool teachers to understand,
23.10plan, and implement literacy strategies, activities, and curriculum that meet children's
23.11literacy needs and continuously improve children's literacy; and
23.12    (7) foster participation by parents, community stakeholders, literacy advisors, and
23.13evaluation specialists.
23.14Program providers are encouraged to collaborate with qualified, community-based
23.15early childhood providers in implementing this program and to seek nonstate funds to
23.16supplement the program.
23.17    (b) Program providers under paragraph (a) interested in extending literacy programs
23.18to children in kindergarten through grade 3 may elect to form a partnership with an
23.19eligible organization under section 124D.38, subdivision 2, or 124D.42, subdivision 6,
23.20clause (3), schools enrolling children in kindergarten through grade 3, and other interested
23.21and qualified community-based entities to provide ongoing literacy programs that offer
23.22seamless literacy instruction focused on closing the literacy achievement gap. To close the
23.23literacy achievement gap by the end of third grade, partnership members must agree to use
23.24best efforts and practices and to work collaboratively to implement a seamless literacy
23.25model from age three to grade 3, consistent with paragraph (a). Literacy programs under
23.26this paragraph must collect and use literacy data to:
23.27    (1) evaluate children's literacy skills; and
23.28    (2) formulate specific intervention strategies to provide reading instruction to
23.29children premised on the outcomes of formative and summative assessments and
23.30research-based indicators of literacy development.
23.31    The literacy programs under this paragraph also must train teachers and other
23.32providers working with children to use the assessment outcomes under clause (2) to
23.33develop and use effective, long-term literacy coaching models that are specific to the
23.34program providers.
23.35    (c) The commissioner must collect and evaluate literacy data on children from age
23.36three to grade 3 who participate in literacy programs under this section to determine the
24.1efficacy of early literacy programs on children's success in developing the literacy skills
24.2that they need for long-term academic success and the programs' success in closing the
24.3literacy achievement gap. Annually by February 1, the commissioner must report to
24.4the education policy and finance committees of the legislature on the ongoing impact
24.5of these programs.
24.6EFFECTIVE DATE.This section is effective the day following final enactment.

24.7    Sec. 2. Minnesota Statutes 2006, section 120A.22, subdivision 7, is amended to read:
24.8    Subd. 7. Education records. (a) A district, a charter school, or a nonpublic school
24.9that receives services or aid under sections 123B.40 to 123B.48 from which a student is
24.10transferring must transmit the student's educational records, within ten business days of a
24.11request, to the district, the charter school, or the nonpublic school in which the student is
24.12enrolling. Districts, charter schools, and nonpublic schools that receive services or aid
24.13under sections 123B.40 to 123B.48 must make reasonable efforts to determine the district,
24.14the charter school, or the nonpublic school in which a transferring student is next enrolling
24.15in order to comply with this subdivision.
24.16    (b) A closed charter school must transfer the student's educational records, within
24.17ten business days of the school's closure, to the student's school district of residence
24.18where the records must be retained unless the records are otherwise transferred under
24.19this subdivision.
24.20    (c) A school district, a charter school, or a nonpublic school that receives services
24.21or aid under sections 123B.40 to 123B.48 that transmits a student's educational records
24.22to another school district or other educational entity, charter school, or nonpublic school
24.23to which the student is transferring must include in the transmitted records information
24.24about any formal suspension, expulsion, and exclusion disciplinary action taken as a
24.25result of any incident in which the student possessed or used a dangerous weapon under
24.26sections 121A.40 to 121A.56. The district, the charter school, or the nonpublic school
24.27that receives services or aid under sections 123B.40 to 123B.48 must provide notice to
24.28a student and the student's parent or guardian that formal disciplinary records will be
24.29transferred as part of the student's educational record, in accordance with data practices
24.30under chapter 13 and the Family Educational Rights and Privacy Act of 1974, United
24.31States Code, title 20, section 1232(g).
24.32    (c) (d) Notwithstanding section 138.17, a principal or chief administrative officer
24.33must remove from a student's educational record and destroy a probable cause notice
24.34received under section 260B.171, subdivision 5, or paragraph (d), if one year has elapsed
24.35since the date of the notice and the principal or chief administrative officer has not
25.1received a disposition or court order related to the offense described in the notice. This
25.2paragraph does not apply if the student no longer attends the school when this one-year
25.3period expires.
25.4    (d) (e) A principal or chief administrative officer who receives a probable cause
25.5notice under section 260B.171, subdivision 5, or a disposition or court order, must include
25.6a copy of that data in the student's educational records if they are transmitted to another
25.7school, unless the data are required to be destroyed under paragraph (c) or section 121A.75.

25.8    Sec. 3. Minnesota Statutes 2006, section 120B.021, subdivision 1, is amended to read:
25.9    Subdivision 1. Required academic standards. The following subject areas are
25.10required for statewide accountability:
25.11    (1) language arts;
25.12    (2) mathematics;
25.13    (3) science;
25.14    (4) social studies, including history, geography, economics, and government and
25.15citizenship;
25.16    (5) health and physical education, for which locally developed academic standards
25.17apply; and
25.18    (6) the arts, for which statewide or locally developed academic standards apply, as
25.19determined by the school district. Public elementary and middle schools must offer at least
25.20three and require at least two of the following four arts areas: dance; music; theater; and
25.21visual arts. Public high schools must offer at least three and require at least one of the
25.22following five arts areas: media arts; dance; music; theater; and visual arts.
25.23    The commissioner must submit proposed standards in science and social studies to
25.24the legislature by February 1, 2004.
25.25For purposes of applicable federal law, the academic standards for language arts,
25.26mathematics, and science apply to all public school students, except the very few students
25.27with extreme cognitive or physical impairments for whom an individualized education
25.28plan team has determined that the required academic standards are inappropriate.
25.29An individualized education plan team that makes this determination must establish
25.30alternative standards.
25.31    A school district, no later than the 2007-2008 school year, must adopt graduation
25.32requirements that meet or exceed state graduation requirements established in law or
25.33rule. A school district that incorporates these state graduation requirements before the
25.342007-2008 school year must provide students who enter the 9th grade in or before
25.35the 2003-2004 school year the opportunity to earn a diploma based on existing locally
26.1established graduation requirements in effect when the students entered the 9th grade.
26.2District efforts to develop, implement, or improve instruction or curriculum as a result
26.3of the provisions of this section must be consistent with sections 120B.10, 120B.11,
26.4and 120B.20.
26.5    The commissioner must include the contributions of Minnesota American Indian
26.6tribes and communities as they relate to the academic standards during the review and
26.7revision of the required academic standards.
26.8EFFECTIVE DATE.This section is effective for the 2008-2009 school year and
26.9later.

26.10    Sec. 4. Minnesota Statutes 2006, section 120B.022, subdivision 1, is amended to read:
26.11    Subdivision 1. Elective standards. (a) A district must establish its own standards in
26.12the following subject areas:
26.13    (1) vocational and technical education; and
26.14    (2) world languages.
26.15    A school district must offer courses in all elective subject areas.
26.16    (b) World languages teachers and other school staff should develop and implement
26.17world languages programs that acknowledge and reinforce the language proficiency and
26.18cultural awareness that non-English language speakers already possess, and encourage
26.19students' proficiency in multiple world languages. Programs under this paragraph must
26.20encompass indigenous American Indian languages and cultures, among other world
26.21languages and cultures. The department shall consult with postsecondary institutions in
26.22developing related professional development opportunities.

26.23    Sec. 5. Minnesota Statutes 2006, section 120B.12, subdivision 2, is amended to read:
26.24    Subd. 2. Identification. For the 2002-2003 school year and later, each school
26.25district shall identify before the end of first grade students who are at risk of not
26.26learning to read before the end of second grade. The district must use a locally adopted
26.27assessment method. The district must annually report the results of the assessment to the
26.28commissioner by June 1.

26.29    Sec. 6. Minnesota Statutes 2006, section 120B.132, is amended to read:
26.30120B.132 RAISED ACADEMIC ACHIEVEMENT; ADVANCED
26.31PLACEMENT AND INTERNATIONAL BACCALAUREATE PROGRAMS.
27.1    Subdivision 1. Establishment; eligibility. A program is established to raise
27.2kindergarten through grade 12 academic achievement through increased student
27.3participation in preadvanced placement and, advanced placement, and international
27.4baccalaureate programs, consistent with section 120B.13. Schools and charter schools
27.5eligible to participate under this section:
27.6    (1) must have a three-year plan approved by the local school board to establish a new
27.7international baccalaureate program leading to international baccalaureate authorization,
27.8expand an existing program that leads to international baccalaureate authorization, or
27.9expand an existing authorized international baccalaureate program; or
27.10    (2) must have a three-year plan approved by the local school board to create a new or
27.11expand an existing program to implement the college board advanced placement courses
27.12and exams or preadvanced placement courses initiative; and
27.13    (2) (3) must propose to further raise students' academic achievement by:
27.14    (i) increasing the availability of and all students' access to advanced placement or
27.15international baccalaureate courses or programs;
27.16    (ii) expanding the breadth of advanced placement or international baccalaureate
27.17courses or programs that are available to students;
27.18    (iii) increasing the number and the diversity of the students who participate in
27.19advanced placement or international baccalaureate courses or programs and succeed;
27.20    (iv) providing low-income and other disadvantaged students with increased access
27.21to advanced placement or international baccalaureate courses and programs; or
27.22    (v) increasing the number of high school students, including low-income and other
27.23disadvantaged students, who receive college credit by successfully completing advanced
27.24placement or international baccalaureate courses or programs and achieving satisfactory
27.25scores on related exams.
27.26    Subd. 2. Application and review process; funding priority. (a) Charter schools
27.27and school districts in which eligible schools under subdivision 1 are located may
27.28apply to the commissioner, in the form and manner the commissioner determines, for
27.29competitive funding to further raise students' academic achievement. The application must
27.30detail the specific efforts the applicant intends to undertake in further raising students'
27.31academic achievement, consistent with subdivision 1, and a proposed budget detailing
27.32the district or charter school's current and proposed expenditures for advanced placement
27.33or, preadvanced placement, and international baccalaureate courses and programs. The
27.34proposed budget must demonstrate that the applicant's efforts will supplement but not
27.35supplant any expenditures for advanced placement and preadvanced placement courses and
27.36programs the applicant currently makes available to students support implementation of
28.1advanced placement, preadvanced placement, and international baccalaureate courses and
28.2programs. Expenditures for administration must not exceed five percent of the proposed
28.3budget. The commissioner may require an applicant to provide additional information.
28.4    (b) When reviewing applications, the commissioner must determine whether
28.5the applicant satisfied all the requirements in this subdivision and subdivision 1.
28.6The commissioner may give funding priority to an otherwise qualified applicant that
28.7demonstrates:
28.8    (1) a focus on developing or expanding preadvanced placement, advanced
28.9placement, or international baccalaureate courses and or programs or increasing students'
28.10participation in, access to, or success with the courses or programs, including the
28.11participation, access, or success of low-income and other disadvantaged students;
28.12    (2) a compelling need for access to preadvanced placement, advanced placement, or
28.13international baccalaureate courses or programs;
28.14    (3) an effective ability to actively involve local business and community
28.15organizations in student activities that are integral to preadvanced placement, advanced
28.16placement, or international baccalaureate courses and or programs;
28.17    (4) access to additional public or nonpublic funds or in-kind contributions that are
28.18available for preadvanced placement, advanced placement, or international baccalaureate
28.19courses or programs; or
28.20    (5) an intent to implement activities that target low-income and other disadvantaged
28.21students.
28.22    Subd. 3. Funding; permissible funding uses. (a) The commissioner shall award
28.23grants to applicant school districts and charter schools that meet the requirements of
28.24subdivisions 1 and 2. The commissioner must award grants on an equitable geographical
28.25basis to the extent feasible and consistent with this section. Grant awards must not exceed
28.26the lesser of:
28.27    (1) $85 times the number of pupils enrolled at the participating sites on October
28.281 of the previous fiscal year; or
28.29    (2) the approved supplemental expenditures based on the budget submitted under
28.30subdivision 2. For charter schools in their first year of operation, the maximum grant
28.31funding award must be calculated using the number of pupils enrolled on October 1 of
28.32the current fiscal year. The commissioner may adjust the maximum grant funding award
28.33computed using prior year data for changes in enrollment attributable to school closings,
28.34school openings, grade level reconfigurations, or school district reorganizations between
28.35the prior fiscal year and the current fiscal year.
29.1    (b) School districts and charter schools that submit an application and receive
29.2funding under this section must use the funding, consistent with the application, to:
29.3    (1) provide teacher training and instruction to more effectively serve students,
29.4including low-income and other disadvantaged students, who participate in preadvanced
29.5and placement, advanced placement, or international baccalaureate courses or programs;
29.6    (2) further develop preadvanced placement, advanced placement, or international
29.7baccalaureate courses or programs;
29.8    (3) improve the transition between grade levels to better prepare students, including
29.9low-income and other disadvantaged students, for succeeding in preadvanced placement,
29.10advanced placement, or international baccalaureate courses or programs;
29.11    (4) purchase books and supplies;
29.12    (5) pay course or program fees;
29.13    (6) increase students' participation in and success with preadvanced placement,
29.14advanced placement, or international baccalaureate courses or programs;
29.15    (7) expand students' access to preadvanced placement or, advanced placement, or
29.16international baccalaureate courses or programs through online learning;
29.17    (8) hire appropriately licensed personnel to teach additional advanced placement
29.18or international baccalaureate courses or programs; or
29.19    (9) engage in other activity directly related to expanding students' access to,
29.20participation in, and success with preadvanced placement or, advanced placement, or
29.21international baccalaureate courses and or programs, including low-income and other
29.22disadvantaged students.
29.23    Subd. 4. Annual reports. (a) Each school district and charter school that receives
29.24a grant under this section annually must collect demographic and other student data to
29.25demonstrate and measure the extent to which the district or charter school raised students'
29.26academic achievement under this program and must report the data to the commissioner
29.27in the form and manner the commissioner determines. The commissioner annually by
29.28February 15 must make summary data about this program available to the education
29.29policy and finance committees of the legislature.
29.30    (b) Each school district and charter school that receives a grant under this section
29.31annually must report to the commissioner, consistent with the Uniform Financial
29.32Accounting and Reporting Standards, its actual expenditures for advanced placement and,
29.33preadvanced placement, and international baccalaureate courses and programs. The report
29.34must demonstrate that the school district or charter school has maintained its effort from
29.35other sources for advanced placement and, preadvanced placement, and international
30.1baccalaureate courses and programs compared with the previous fiscal year, and the
30.2district or charter school has expended all grant funds, consistent with its approved budget.
30.3EFFECTIVE DATE.This section is effective the day following final enactment
30.4and applies to the 2007-2008 school year and later.

30.5    Sec. 7. Minnesota Statutes 2006, section 120B.15, is amended to read:
30.6120B.15 GIFTED AND TALENTED STUDENTS PROGRAMS.
30.7    (a) School districts may identify students, locally develop programs, provide
30.8staff development, and evaluate programs to provide gifted and talented students with
30.9challenging educational programs.
30.10    (b) School districts may adopt guidelines for assessing and identifying students for
30.11participation in gifted and talented programs. The guidelines should include the use of:
30.12    (1) multiple and objective criteria; and
30.13    (2) assessments and procedures that are valid and reliable, fair, and based on current
30.14theory and research.
30.15    (c) School districts must adopt procedures for the academic acceleration of gifted
30.16and talented students. These procedures must include how the district will:
30.17    (1) assess a student's readiness and motivation for acceleration; and
30.18    (2) match the level, complexity, and pace of the curriculum to a student to achieve
30.19the best type of academic acceleration for that student.

30.20    Sec. 8. Minnesota Statutes 2006, section 120B.30, is amended to read:
30.21120B.30 STATEWIDE TESTING AND REPORTING SYSTEM.
30.22    Subdivision 1. Statewide testing. (a) The commissioner, with advice from experts
30.23with appropriate technical qualifications and experience and stakeholders, consistent with
30.24subdivision 1a, shall include in the comprehensive assessment system, for each grade
30.25level to be tested, state-constructed tests developed from and aligned with the state's
30.26required academic standards under section 120B.021 and administered annually to all
30.27students in grades 3 through 8 and at the high school level. A state-developed test in a
30.28subject other than writing, developed after the 2002-2003 school year, must include both
30.29machine-scoreable and constructed response questions. The commissioner shall establish
30.30one or more months during which schools shall administer the tests to students each
30.31school year. For students enrolled in grade 8 before the 2005-2006 school year, only
30.32Minnesota basic skills tests in reading, mathematics, and writing shall fulfill students'
31.1basic skills testing requirements for a passing state notation. The passing scores of the
31.2state basic skills tests in reading and mathematics are the equivalent of:
31.3    (1) 70 percent correct for students entering grade 9 in 1996; and
31.4    (2) 75 percent correct for students entering grade 9 in 1997 and thereafter, as based
31.5on the first uniform test administration of February 1998.
31.6    (b) For students enrolled in grade 8 in the 2005-2006 school year and later, only
31.7the Minnesota Comprehensive Assessments Second Edition (MCA-IIs) in reading,
31.8mathematics, and writing following options shall fulfill students' academic standard state
31.9graduation test requirements.:
31.10    (1) for reading and mathematics:
31.11    (i) obtaining an achievement level equivalent to or greater than proficient as
31.12determined through a standard setting process on the Minnesota comprehensive
31.13assessments in grade 10 for reading and grade 11 for mathematics or achieving a passing
31.14score as determined through a standard setting process on the graduation-required
31.15assessment for diploma in grade 10 for reading and grade 11 for mathematics or
31.16subsequent retests;
31.17    (ii) achieving a passing score as determined through a standard setting process on the
31.18state-identified language proficiency test in reading and the mathematics test for English
31.19language learners or the graduation-required assessment for diploma equivalent of those
31.20assessments for students designated as English language learners;
31.21    (iii) achieving an individual passing score on the graduation-required assessment
31.22for diploma as determined by appropriate state guidelines for students with an individual
31.23education plan or 504 plan;
31.24    (iv) obtaining achievement level equivalent to or greater than proficient as
31.25determined through a standard setting process on the state-identified alternate assessment
31.26or assessments in grade 10 for reading and grade 11 for mathematics for students with
31.27an individual education plan; or
31.28    (v) achieving an individual passing score on the state-identified alternate assessment
31.29or assessments as determined by appropriate state guidelines for students with an
31.30individual education plan; and
31.31    (2) for writing:
31.32    (i) achieving a passing score on the graduation-required assessment for diploma;
31.33    (ii) achieving a passing score as determined through a standard setting process on
31.34the state-identified language proficiency test in writing for students designated as English
31.35language learners;
32.1    (iii) achieving an individual passing score on the graduation-required assessment
32.2for diploma as determined by appropriate state guidelines for students with an individual
32.3education plan or 504 plan; or
32.4    (iv) achieving an individual passing score on the state-identified alternate assessment
32.5or assessments as determined by appropriate state guidelines for students with an
32.6individual education plan.
32.7    (b) (c) The third 3rd through 8th grade and high school level test results shall
32.8be available to districts for diagnostic purposes affecting student learning and district
32.9instruction and curriculum, and for establishing educational accountability. The
32.10commissioner must disseminate to the public the test results upon receiving those results.
32.11    (c) (d) State tests must be constructed and aligned with state academic standards. The
32.12testing process and the order of administration shall be determined by the commissioner.
32.13The statewide results shall be aggregated at the site and district level, consistent with
32.14subdivision 1a.
32.15    (d) (e) In addition to the testing and reporting requirements under this section, the
32.16commissioner shall include the following components in the statewide public reporting
32.17system:
32.18    (1) uniform statewide testing of all students in grades 3 through 8 and at the high
32.19school level that provides appropriate, technically sound accommodations, alternate
32.20assessments, or exemptions consistent with applicable federal law, only with parent or
32.21guardian approval, for those very few students for whom the student's individual education
32.22plan team under sections 125A.05 and 125A.06, determines that the general statewide
32.23test is inappropriate for a student is incapable of taking a statewide test, or for a limited
32.24English proficiency student under section 124D.59, subdivision 2, if the student has been
32.25in the United States for fewer than three years;
32.26    (2) educational indicators that can be aggregated and compared across school
32.27districts and across time on a statewide basis, including average daily attendance, high
32.28school graduation rates, and high school drop-out rates by age and grade level;
32.29    (3) students' scores state results on the American College Test; and
32.30    (4) state results from participation in the National Assessment of Educational
32.31Progress so that the state can benchmark its performance against the nation and other
32.32states, and, where possible, against other countries, and contribute to the national effort
32.33to monitor achievement.
32.34    (e) Districts must report exemptions under paragraph (d), clause (1), to the
32.35commissioner consistent with a format provided by the commissioner.
33.1    Subd. 1a. Statewide and local assessments; results. (a) The commissioner must
33.2develop reading, mathematics, and science assessments aligned with state academic
33.3standards that districts and sites must use to monitor student growth toward achieving
33.4those standards. The commissioner must not develop statewide assessments for academic
33.5standards in social studies, health and physical education, and the arts. The commissioner
33.6must require:
33.7    (1) annual reading and mathematics assessments in grades 3 through 8 and at the
33.8high school level for the 2005-2006 school year and later; and
33.9    (2) annual science assessments in one grade in the grades 3 through 5 span, the
33.10grades 6 through 9 span, and a life sciences assessment in the grades 10 through 12 span
33.11for the 2007-2008 school year and later.
33.12    (b) The commissioner must ensure that all statewide tests administered to elementary
33.13and secondary students measure students' academic knowledge and skills and not students'
33.14values, attitudes, and beliefs.
33.15    (c) Reporting of assessment results must:
33.16    (1) provide timely, useful, and understandable information on the performance of
33.17individual students, schools, school districts, and the state;
33.18    (2) include, by the 2006-2007 no later than the 2008-2009 school year, a value-added
33.19component to that is in addition to a measure for student achievement growth over time;
33.20and
33.21    (3)(i) for students enrolled in grade 8 before the 2005-2006 school year, determine
33.22whether students have met the state's basic skills requirements; and
33.23    (ii) for students enrolled in grade 8 in the 2005-2006 school year and later, determine
33.24whether students have met the state's academic standards.
33.25    (d) Consistent with applicable federal law and subdivision 1, paragraph (d), clause
33.26(1), the commissioner must include appropriate, technically sound accommodations or
33.27alternative assessments for the very few students with disabilities for whom statewide
33.28assessments are inappropriate and for students with limited English proficiency.
33.29    (e) A school, school district, and charter school must administer statewide
33.30assessments under this section, as the assessments become available, to evaluate student
33.31progress in achieving the academic standards. If a state assessment is not available, a
33.32school, school district, and charter school must determine locally if a student has met
33.33the required academic standards. A school, school district, or charter school may use a
33.34student's performance on a statewide assessment as one of multiple criteria to determine
33.35grade promotion or retention. A school, school district, or charter school may use a high
34.1school student's performance on a statewide assessment as a percentage of the student's
34.2final grade in a course, or place a student's assessment score on the student's transcript.
34.3    Subd. 2. Department of Education assistance. The Department of Education
34.4shall contract for professional and technical services according to competitive bidding
34.5procedures under chapter 16C for purposes of this section.
34.6    Subd. 3. Reporting. The commissioner shall report test data publicly and to
34.7stakeholders, including the three performance baselines performance achievement levels
34.8developed from students' unweighted mean test scores in each tested subject and a listing of
34.9demographic factors that strongly correlate with student performance. The commissioner
34.10shall also report data that compares performance results among school sites, school
34.11districts, Minnesota and other states, and Minnesota and other nations. The commissioner
34.12shall disseminate to schools and school districts a more comprehensive report containing
34.13testing information that meets local needs for evaluating instruction and curriculum.
34.14    Subd. 4. Access to tests. The commissioner must adopt and publish a policy
34.15to provide public and parental access for review of basic skills tests, Minnesota
34.16Comprehensive Assessments, or any other such statewide test and assessment. Upon
34.17receiving a written request, the commissioner must make available to parents or guardians
34.18a copy of their student's actual answer sheet responses to the test questions to be reviewed
34.19by the parent.

34.20    Sec. 9. Minnesota Statutes 2006, section 120B.31, subdivision 3, is amended to read:
34.21    Subd. 3. Educational accountability. (a) The Independent Office of Educational
34.22Accountability, as authorized by Laws 1997, First Special Session chapter 4, article 5,
34.23section 28, subdivision 2, is established, and shall be funded through the Board of Regents
34.24of the University of Minnesota. The office shall advise the education committees of
34.25the legislature and the commissioner of education, at least on a biennial basis, on the
34.26degree to which the statewide educational accountability and reporting system includes a
34.27comprehensive assessment framework that measures school accountability for students
34.28achieving the goals described in the state's results-oriented graduation rule. The office shall
34.29consider determine and annually report to the legislature whether and how effectively:
34.30    (1) the statewide system of educational accountability utilizes multiple indicators to
34.31provide valid and reliable comparative and contextual data on students, schools, districts,
34.32and the state, and if not, recommend ways to improve the accountability reporting system.;
34.33    (2) the commissioner makes statistical adjustments when reporting student data over
34.34time, consistent with clause (4);
35.1    (3) the commissioner uses indicators of student achievement growth over time
35.2and a value-added assessment model that estimates the effects of the school and school
35.3district on student achievement to measure school performance, consistent with section
35.4120B.36, subdivision 1;
35.5    (4) the commissioner makes data available on students who do not pass one or more
35.6of the state's required GRAD tests and do not receive a diploma as a consequence, and
35.7categorizes these data according to gender, race, eligibility for free or reduced lunch, and
35.8English language proficiency; and
35.9    (5) the commissioner fulfills the requirements under section 127A.095, subdivision 2.
35.10    (b) When the office reviews the statewide educational accountability and reporting
35.11system, it shall also consider:
35.12    (1) the objectivity and neutrality of the state's educational accountability system; and
35.13    (2) the impact of a testing program on school curriculum and student learning.
35.14EFFECTIVE DATE.This section is effective the day following final enactment.

35.15    Sec. 10. Minnesota Statutes 2006, section 120B.36, subdivision 1, is amended to read:
35.16    Subdivision 1. School performance report cards. (a) The commissioner shall
35.17use objective criteria based on levels of student performance to identify four to six
35.18designations applicable to high and low performing public schools. The objective
35.19criteria shall include report at least student academic performance, school safety, two
35.20separate student-to-teacher ratios that clearly indicate the definition of teacher consistent
35.21with sections 122A.06 and 122A.15 for purposes of determining these ratios, and staff
35.22characteristics, with a value-added growth component added by the 2006-2007 no later
35.23than the 2008-2009 school year. The report must indicate a school's adequate yearly
35.24progress status, and must not set any designations applicable to high- and low-performing
35.25schools due solely to adequate yearly progress status.
35.26    (b) The commissioner shall develop, annually update, and post on the department
35.27Web site school performance report cards. A school's designation must be clearly stated
35.28on each school performance report card.
35.29    (c) The commissioner must make available the first school designations and school
35.30performance report cards by November 2003, and during the beginning of each school
35.31year thereafter.
35.32    (d) A school or district may appeal its adequate yearly progress status in writing
35.33a designation under this section to the commissioner within 30 days of receiving the
35.34designation notice of its status. The commissioner's decision to uphold or deny an appeal
35.35is final.
36.1    (e) School performance report cards data are nonpublic data under section 13.02,
36.2subdivision 9
, until not later than ten days after the appeal procedure described in
36.3paragraph (d) concludes. The department shall annually post school performance report
36.4cards to its public Web site no later than September 1.
36.5EFFECTIVE DATE.This section is effective the day following final enactment
36.6and applies to the school performance report cards for the 2006-2007 school year and later.

36.7    Sec. 11. [121A.231] RESPONSIBLE FAMILY LIFE AND SEXUALITY
36.8EDUCATION PROGRAMS.
36.9    Subdivision 1. Definitions. (a) "Responsible family life and sexuality education"
36.10means education in grades 7 through 12 that:
36.11    (1) respects community values and encourages family communication;
36.12    (2) develops skills in communication, decision making, and conflict resolution;
36.13    (3) contributes to healthy relationships;
36.14    (4) provides human development and sexuality education that is age appropriate
36.15and medically accurate;
36.16    (5) includes an abstinence-first approach to delaying initiation of sexual activity that
36.17emphasizes abstinence while also including education about the use of protection and
36.18contraception; and
36.19    (6) promotes individual responsibility.
36.20    (b) "Age appropriate" refers to topics, messages, and teaching methods suitable to
36.21particular ages or age groups of children and adolescents, based on developing cognitive,
36.22emotional, and behavioral capacity typical for the age or age group.
36.23    (c) "Medically accurate" means verified or supported by research conducted in
36.24compliance with scientific methods and published in peer-reviewed journals, where
36.25appropriate, and recognized as accurate and objective by professional organizations
36.26and agencies in the relevant field, such as the federal Centers for Disease Control
36.27and Prevention, the American Public Health Association, the American Academy of
36.28Pediatrics, or the American College of Obstetricians and Gynecologists.
36.29    Subd. 2. Curriculum requirements. (a) A school district must offer and may
36.30independently establish policies, procedures, curriculum, and services for providing
36.31responsible family life and sexuality education that is age appropriate and medically
36.32accurate for grades 7 through 12.
36.33    (b) A school district must consult with parents or guardians of enrolled students
36.34when establishing policies, procedures, curriculum, and services under this subdivision.
37.1    Subd. 3. Notice and parental options. (a) It is the legislature's intent to encourage
37.2pupils to communicate with their parents or guardians about human sexuality and to respect
37.3rights of parents or guardians to supervise their children's education on these subjects.
37.4    (b) Parents or guardians may excuse their children from all or part of a responsible
37.5family life and sexuality education program.
37.6    (c) A school district must establish policies and procedures consistent with
37.7paragraph (e) and this section for providing parents or guardians reasonable notice with
37.8the following information:
37.9    (1) if the district is offering a responsible family life and sexuality education program
37.10to the parents' or guardians' child during the course of the year;
37.11    (2) how the parents or guardians may inspect the written and audio/visual
37.12educational materials used in the program and the process for inspection;
37.13    (3) if the program is presented by school district personnel or outside consultants,
37.14and if outside consultants are used, who they may be; and
37.15    (4) parents' or guardians' right to choose not to have their child participate in the
37.16program and the procedure for exercising that right.
37.17    (d) A school district must establish policies and procedures for reasonably restricting
37.18the availability of written and audio/visual educational materials from public view of
37.19students who have been excused from all or part of a responsible family life and sexuality
37.20education program at the request of a parent or guardian, consistent with paragraph (e)
37.21and this section.
37.22    (e) A school district may develop a policy for a parent, guardian, or adult student
37.23age 18 or older to review the content of the instructional materials under this section. If a
37.24school district develops a policy, it must make reasonable arrangements with school
37.25personnel for alternative instruction for those pupils whose parents or guardians object to
37.26the content of the instruction, and must not impose an academic or other penalty upon a
37.27pupil merely for arranging the alternative instruction. School personnel may evaluate and
37.28assess the quality of the pupil's work completed as part of the alternative instruction.
37.29    Subd. 4. Assistance to school districts. (a) The Department of Education may
37.30offer services to school districts to help them implement effective responsible family life
37.31and sexuality education programs. In making these services available the department
37.32may provide:
37.33    (1) training for teachers, parents, and community members in the development of
37.34responsible family life and sexuality education curriculum or services and in planning
37.35for monitoring and evaluation activities;
38.1    (2) resource staff persons to provide expert training, curriculum development and
38.2implementation, and evaluation services;
38.3    (3) technical assistance to promote and coordinate community, parent, and youth
38.4forums in communities identified as having high needs for responsible family life and
38.5sexuality education;
38.6    (4) technical assistance for issue management and policy development training for
38.7school boards, superintendents, principals, and administrators across the state; and
38.8    (b) Technical assistance in accordance with National Health Education Standards
38.9provided by the department to school districts may:
38.10    (1) promote instruction and use of materials that are age appropriate;
38.11    (2) provide information that is medically accurate and objective;
38.12    (3) provide instruction and promote use of materials that are respectful of marriage
38.13and commitments in relationships;
38.14    (4) provide instruction and promote use of materials that are appropriate for use
38.15with pupils and family experiences based on race, gender, sexual orientation, ethnic
38.16and cultural background, and appropriately accommodate alternative learning based on
38.17language or disability;
38.18    (5) provide instruction and promote use of materials that encourage pupils to
38.19communicate with their parents or guardians about human sexuality;
38.20    (6) provide instruction and promote use of age-appropriate materials that teach
38.21abstinence from sexual intercourse as the only certain way to prevent unintended
38.22pregnancy or sexually transmitted infections, including HIV, Chlamydia, and HPV, and
38.23provide information about the role and value of abstinence while also providing medically
38.24accurate information on other methods of preventing and reducing risk for unintended
38.25pregnancy and sexually transmitted infections;
38.26    (7) provide instruction and promote use of age-appropriate materials that are
38.27medically accurate in explaining transmission modes, risks, symptoms, and treatments for
38.28sexually transmitted infections, including HIV, Chlamydia, and HPV;
38.29    (8) provide instruction and promote use of age-appropriate materials that address
38.30varied societal views on sexuality, sexual behaviors, pregnancy, and sexually transmitted
38.31infections, including HIV, Chlamydia, and HPV, in an age-appropriate manner;
38.32    (9) provide instruction and promote use of age-appropriate materials that provide
38.33information about the effectiveness and safety of all FDA-approved methods for
38.34preventing and reducing risk for unintended pregnancy and sexually transmitted infections,
38.35including HIV, Chlamydia, and HPV;
39.1    (10) provide instruction and promote use of age-appropriate materials that provide
39.2instruction in skills for making and implementing responsible decisions about sexuality;
39.3    (11) provide instruction and promote use of age-appropriate materials that provide
39.4instruction in skills for making and implementing responsible decisions about finding and
39.5using health services; and
39.6    (12) provide instruction and promote use of age-appropriate materials that do not
39.7teach or promote religious doctrine or bias against a religion or reflect or promote bias
39.8against any person on the basis of any category protected under the Minnesota Human
39.9Rights Act, chapter 363A.

39.10    Sec. 12. Minnesota Statutes 2006, section 122A.20, subdivision 1, is amended to read:
39.11    Subdivision 1. Grounds for revocation, suspension, or denial. (a) The Board of
39.12Teaching or Board of School Administrators, whichever has jurisdiction over a teacher's
39.13licensure, may, on the written complaint of the school board employing a teacher, a teacher
39.14organization, or any other interested person, refuse to issue, refuse to renew, suspend, or
39.15revoke a teacher's license to teach for any of the following causes:
39.16    (1) immoral character or conduct;
39.17    (2) failure, without justifiable cause, to teach for the term of the teacher's contract;
39.18    (3) gross inefficiency or willful neglect of duty;
39.19    (4) failure to meet licensure requirements; or
39.20    (5) fraud or misrepresentation in obtaining a license.
39.21    The written complaint must specify the nature and character of the charges.
39.22    (b) The Board of Teaching or Board of School Administrators, whichever
39.23has jurisdiction over a teacher's licensure, shall refuse to issue, refuse to renew, or
39.24automatically revoke a teacher's license to teach without the right to a hearing upon
39.25receiving a certified copy of a conviction showing that the teacher has been convicted
39.26of child abuse, as defined in section 609.185, or sexual abuse under section 609.342,
39.27609.343 , 609.344, 609.345, 609.3451, subdivision 3, or 617.23, subdivision 3, or using
39.28minors in a sexual performance under section 617.246, or possessing pornographic works
39.29involving a minor under section 617.247, or under a similar law of another state or the
39.30United States. The board shall send notice of this licensing action to the district in which
39.31the teacher is currently employed.
39.32    (c) A person whose license to teach has been revoked, not issued, or not renewed
39.33under paragraph (b), may petition the board to reconsider the licensing action if the
39.34person's conviction for child abuse or sexual abuse is reversed by a final decision of the
39.35Court of Appeals or the Supreme Court or if the person has received a pardon for the
40.1offense. The petitioner shall attach a certified copy of the appellate court's final decision or
40.2the pardon to the petition. Upon receiving the petition and its attachment, the board shall
40.3schedule and hold a disciplinary hearing on the matter under section 214.10, subdivision 2,
40.4unless the petitioner waives the right to a hearing. If the board finds that, notwithstanding
40.5the reversal of the petitioner's criminal conviction or the issuance of a pardon, the
40.6petitioner is disqualified from teaching under paragraph (a), clause (1), the board shall
40.7affirm its previous licensing action. If the board finds that the petitioner is not disqualified
40.8from teaching under paragraph (a), clause (1), it shall reverse its previous licensing action.
40.9    (d) For purposes of this subdivision, the Board of Teaching is delegated the authority
40.10to suspend or revoke coaching licenses.
40.11EFFECTIVE DATE.This section is effective the day following final enactment.

40.12    Sec. 13. Minnesota Statutes 2006, section 122A.415, is amended by adding a
40.13subdivision to read:
40.14    Subd. 4. Basic alternative teacher compensation aid. (a) For fiscal year 2009
40.15and later, the basic alternative teacher compensation aid for a school district with a plan
40.16approved under section 122A.414, subdivision 2b, equals 73.1 percent of the alternative
40.17teacher compensation revenue under subdivision 1. The basic alternative teacher
40.18compensation aid for an intermediate school district or charter school with a plan approved
40.19under section 122A.414, subdivisions 2a and 2b, if the recipient is a charter school, equals
40.20$260 times the number of pupils enrolled in the school on October 1 of the previous
40.21fiscal year, or on October 1 of the current fiscal year for a charter school in the first year
40.22of operation, times the ratio of the sum of the alternative teacher compensation aid and
40.23alternative teacher compensation levy for all participating school districts to the maximum
40.24alternative teacher compensation revenue for those districts under subdivision 1.
40.25    (b) Notwithstanding paragraph (a) and subdivision 1, the state total basic alternative
40.26teacher compensation aid entitlement must not exceed $43,515,000 for fiscal year 2009,
40.27$42,953,000 for fiscal year 2010, and $42,643,000 for fiscal year 2011 and later. The
40.28commissioner must limit the amount of alternative teacher compensation aid approved
40.29under this section so as not to exceed these limits.
40.30EFFECTIVE DATE.This section is effective for revenue for fiscal year 2009
40.31and later.

40.32    Sec. 14. Minnesota Statutes 2006, section 122A.415, is amended by adding a
40.33subdivision to read:
41.1    Subd. 5. Alternative teacher compensation levy. For fiscal year 2009 and later,
41.2the alternative teacher compensation levy for a district receiving basic alternative teacher
41.3compensation aid equals the product of: (1) the difference between the district's alternative
41.4teacher compensation revenue, under subdivision 1, and the district's basic alternative
41.5teacher compensation aid, under subdivision 4; times (2) the lesser of one or the ratio of
41.6the district's adjusted net tax capacity per adjusted pupil unit to $5,913.
41.7EFFECTIVE DATE.This section is effective for revenue for fiscal year 2009
41.8and later.

41.9    Sec. 15. Minnesota Statutes 2006, section 122A.415, is amended by adding a
41.10subdivision to read:
41.11    Subd. 6. Alternative teacher compensation aid. (a) For fiscal year 2009 and
41.12later, a district's alternative teacher compensation equalization aid equals the district's
41.13alternative teacher compensation revenue, minus the district's basic alternative teacher
41.14compensation aid, minus the district's alternative teacher compensation levy. If a district
41.15does not levy the entire amount permitted under subdivision 5, the alternative teacher
41.16compensation equalization aid must be reduced in proportion to the actual amount levied.
41.17    (b) A district's alternative teacher compensation aid equals the sum of the
41.18district's basic alternative teacher compensation aid and the district's alternative teacher
41.19compensation equalization aid.
41.20EFFECTIVE DATE.This section is effective for revenue for fiscal year 2009
41.21and later.

41.22    Sec. 16. Minnesota Statutes 2006, section 122A.61, is amended by adding a
41.23subdivision to read:
41.24    Subd. 3. Coursework and training. A school district may use the revenue
41.25reserved under subdivision 1 for grants to the district's teachers to pay for coursework
41.26and training leading to certification as a college in the schools or concurrent enrollment
41.27teacher. In order to receive a grant, the teacher must be enrolled in a program that includes
41.28coursework and training focused on teaching a core subject.

41.29    Sec. 17. Minnesota Statutes 2006, section 122A.72, subdivision 5, is amended to read:
41.30    Subd. 5. Center functions. (a) A teacher center shall perform functions according
41.31to this subdivision. The center shall assist teachers, diagnose learning needs, experiment
41.32with the use of multiple instructional approaches, assess pupil outcomes, assess staff
42.1development needs and plans, and teach school personnel about effective pedagogical
42.2approaches. The center shall develop and produce curricula and curricular materials
42.3designed to meet the educational needs of pupils being served, by applying educational
42.4research and new and improved methods, practices, and techniques. The center shall
42.5provide programs to improve the skills of teachers to meet the special educational needs of
42.6pupils. The center shall provide programs to familiarize teachers with developments in
42.7curriculum formulation and educational research, including how research can be used to
42.8improve teaching skills. The center shall facilitate sharing of resources, ideas, methods,
42.9and approaches directly related to classroom instruction and improve teachers' familiarity
42.10with current teaching materials and products for use in their classrooms. The center shall
42.11provide in-service programs.
42.12    (b) Each teacher center must provide a professional development program to train
42.13interested and highly qualified elementary, middle, and secondary teachers, selected by the
42.14employing school district, to assist other teachers in that district with mathematics and
42.15science curriculum, standards, and instruction so that all teachers have access to:
42.16    (1) high quality professional development programs in mathematics and science
42.17that address curriculum, instructional methods, alignment of standards, and performance
42.18measurements, enhance teacher and student learning, and support state mathematics and
42.19science standards; and
42.20    (2) research-based mathematics and science programs and instructional models
42.21premised on best practices that inspire teachers and students and have practical classroom
42.22application.
42.23EFFECTIVE DATE.This section is effective for the 2007-2008 school year and
42.24later.

42.25    Sec. 18. Minnesota Statutes 2006, section 123B.02, is amended by adding a
42.26subdivision to read:
42.27    Subd. 24. Membership in economic development, community, and civic
42.28organizations. The board may authorize and pay for the membership of the school
42.29district or of any district representative designated by the board in those local economic
42.30development associations or other community or civic organizations that the board deems
42.31appropriate.

42.32    Sec. 19. Minnesota Statutes 2006, section 123B.143, subdivision 1, is amended to read:
42.33    Subdivision 1. Contract; duties. All districts maintaining a classified secondary
42.34school must employ a superintendent who shall be an ex officio nonvoting member of the
43.1school board. The authority for selection and employment of a superintendent must be
43.2vested in the board in all cases. An individual employed by a board as a superintendent
43.3shall have an initial employment contract for a period of time no longer than three years
43.4from the date of employment. Any subsequent employment contract must not exceed a
43.5period of three years. A board, at its discretion, may or may not renew an employment
43.6contract. A board must not, by action or inaction, extend the duration of an existing
43.7employment contract. Beginning 365 days prior to the expiration date of an existing
43.8employment contract, a board may negotiate and enter into a subsequent employment
43.9contract to take effect upon the expiration of the existing contract. A subsequent contract
43.10must be contingent upon the employee completing the terms of an existing contract. If a
43.11contract between a board and a superintendent is terminated prior to the date specified in
43.12the contract, the board may not enter into another superintendent contract with that same
43.13individual that has a term that extends beyond the date specified in the terminated contract.
43.14A board may terminate a superintendent during the term of an employment contract for any
43.15of the grounds specified in section 122A.40, subdivision 9 or 13. A superintendent shall
43.16not rely upon an employment contract with a board to assert any other continuing contract
43.17rights in the position of superintendent under section 122A.40. Notwithstanding the
43.18provisions of sections 122A.40, subdivision 10 or 11, 123A.32, 123A.75, or any other law
43.19to the contrary, no individual shall have a right to employment as a superintendent based
43.20on order of employment in any district. If two or more districts enter into an agreement for
43.21the purchase or sharing of the services of a superintendent, the contracting districts have
43.22the absolute right to select one of the individuals employed to serve as superintendent
43.23in one of the contracting districts and no individual has a right to employment as the
43.24superintendent to provide all or part of the services based on order of employment in a
43.25contracting district. The superintendent of a district shall perform the following:
43.26    (1) visit and supervise the schools in the district, report and make recommendations
43.27about their condition when advisable or on request by the board;
43.28    (2) recommend to the board employment and dismissal of teachers;
43.29    (3) superintend school grading practices and examinations for promotions;
43.30    (4) make reports required by the commissioner;
43.31    (5) by January 10, submit an annual report to the commissioner in a manner
43.32prescribed by the commissioner, in consultation with school districts, identifying the
43.33expenditures that the district requires to ensure an 80 percent student passage rate on the
43.34basic standards test MCA-IIs taken in the eighth grade, identifying the highest student
43.35passage rate the district expects it will be able to attain on the basic standards test MCA-IIs
43.36by grade 12, and the amount of expenditures that the district requires to attain the targeted
44.1student passage rate, and how much the district is cross-subsidizing programs with special
44.2education, basic skills, and general education revenue; and
44.3    (6) perform other duties prescribed by the board.

44.4    Sec. 20. Minnesota Statutes 2006, section 123B.92, subdivision 3, is amended to read:
44.5    Subd. 3. Alternative attendance programs. (a) A district that enrolls nonresident
44.6pupils in programs under sections 124D.03, 124D.06, 124D.08, 123A.05 to 123A.08,
44.7and 124D.68, must provide authorized transportation to the pupil within the attendance
44.8area for the school that the pupil attends at the same level of service that is provided to
44.9resident pupils within the attendance area. The resident district need not provide or pay for
44.10transportation between the pupil's residence and the district's border.
44.11    (b) A district may provide transportation to allow a student who attends a high-need
44.12English language learner program and who resides within the transportation attendance
44.13area of the program to continue in the program until the student completes the highest
44.14grade level offered by the program.
44.15EFFECTIVE DATE.This section is effective the day following final enactment.

44.16    Sec. 21. [124D.091] CONCURRENT ENROLLMENT PROGRAM AID.
44.17    Subdivision 1. Accreditation. To establish a uniform standard by which
44.18concurrent enrollment courses and professional development activities may be measured,
44.19postsecondary institutions are encouraged to apply for accreditation by the National
44.20Alliance of Concurrent Enrollment Partnership.
44.21    Subd. 2. Eligibility. A district that offers a concurrent enrollment course according
44.22to an agreement under section 124D.09, subdivision 10, is eligible to receive aid for the
44.23costs of providing postsecondary courses at the high school. Beginning in fiscal year 2011,
44.24districts only are eligible for aid if the college or university concurrent enrollment courses
44.25offered by the district are accredited by the National Alliance of Concurrent Enrollment
44.26Partnership, in the process of being accredited, or are shown by clear evidence to be of
44.27comparable standard to accredited courses.
44.28    Subd. 3. Aid. An eligible district shall receive $150 per pupil enrolled in a
44.29concurrent enrollment course. The money must be used to defray the cost of delivering
44.30the course at the high school. The commissioner shall establish application procedures
44.31and deadlines for receipt of aid payments.

44.32    Sec. 22. Minnesota Statutes 2006, section 124D.095, subdivision 2, is amended to read:
45.1    Subd. 2. Definitions. For purposes of this section, the following terms have the
45.2meanings given them.
45.3    (a) "Online learning" is an interactive course or program that delivers instruction
45.4from a teacher to a student by computer; is combined with other traditional delivery
45.5methods that include frequent student assessment and may include actual teacher contact
45.6time; and meets or exceeds state academic standards.
45.7    (b) "Online learning provider" is a school district, an intermediate school district, an
45.8organization of two or more school districts operating under a joint powers agreement, or
45.9a charter school located in Minnesota that provides online learning to students.
45.10    (c) "Student" is a Minnesota resident enrolled in a school under section 120A.22,
45.11subdivision 4
, in kindergarten through grade 12.
45.12    (d) "Online learning student" is a student enrolled in an online learning course or
45.13program delivered by an online provider under paragraph (b).
45.14    (e) "Enrolling district" means the school district or charter school in which a student
45.15is enrolled under section 120A.22, subdivision 4, for purposes of compulsory attendance.
45.16    (f) "Supplemental online learning" means an online course taken in place of a course
45.17period during the regular school day at a local district school.
45.18    (g) "Full-time online provider" means an enrolling school authorized by the
45.19department to deliver comprehensive public education at any or all of the elementary,
45.20middle, or high school levels.

45.21    Sec. 23. Minnesota Statutes 2006, section 124D.095, subdivision 3, is amended to read:
45.22    Subd. 3. Authorization; notice; limitations on enrollment. (a) A student may
45.23apply to an online learning provider to enroll in online learning for full-time enrollment in
45.24an approved online learning program under section 124D.03, 124D.08 or 124D.10, or for
45.25supplemental online learning. Notwithstanding sections 124D.03, 124D.08, and 124D.10,
45.26procedures for enrolling in online learning shall be as provided in this subdivision. A
45.27student age 17 or younger must have the written consent of a parent or guardian to apply.
45.28No school district or charter school may prohibit a student from applying to enroll in
45.29online learning. An online learning provider that accepts a student under this section must,
45.30within ten days, notify the student and the enrolling district if the enrolling district is not
45.31the online learning provider. The notice must report the student's course or program and
45.32hours of instruction. In order that a student may enroll in online learning, the student
45.33and the student's parents must submit an application to the online learning provider and
45.34identify the reason for enrolling in online learning. The online learning provider that
45.35accepts a student under this section must within ten days notify the student and the
46.1enrolling district in writing if the enrolling district is not the online learning provider. The
46.2student and family must notify the online learning provider of their intent to enroll in
46.3online learning within ten days of acceptance, at which time the student and parent must
46.4sign a statement of assurance that they have reviewed the online course or program and
46.5understand the expectations of online learning enrollment. The online learning provider
46.6must notify the enrolling district of the student's enrollment in online learning in writing
46.7on a form provided by the department.
46.8    (b) Supplemental online learning notification to the enrolling district upon student
46.9enrollment in the online learning program will include the courses or program, credits
46.10to be awarded, the start date of online enrollment, and confirmation that the courses will
46.11meet the student's graduation plan. A student may enroll in supplemental online learning
46.12courses up to the midpoint of the enrolling district's term. The enrolling district may waive
46.13this requirement for special circumstances and upon acceptance by the online provider.
46.14    (b) An online learning student must notify the enrolling district at least 30 days
46.15before taking an online learning course or program if the enrolling district is not providing
46.16the online learning. (c) An online learning provider must notify the commissioner that it is
46.17delivering online learning and report the number of online learning students it is accepting
46.18and the online learning courses and programs it is delivering.
46.19    (c) (d) An online learning provider may limit enrollment if the provider's school
46.20board or board of directors adopts by resolution specific standards for accepting and
46.21rejecting students' applications.
46.22    (d) (e) An enrolling district may reduce an online learning student's regular
46.23classroom instructional membership in proportion to the student's membership in online
46.24learning courses.

46.25    Sec. 24. Minnesota Statutes 2006, section 124D.095, subdivision 4, is amended to read:
46.26    Subd. 4. Online learning parameters. (a) An online learning student must receive
46.27academic credit for completing the requirements of an online learning course or program.
46.28Secondary credits granted to an online learning student must be counted toward the
46.29graduation and credit requirements of the enrolling district. An online learning provider
46.30must make available to the enrolling district the course syllabus, standard alignment,
46.31content outline, assessment requirements, and contact information for supplemental online
46.32courses taken by students in the enrolling district. The enrolling district must apply the
46.33same graduation requirements to all students, including online learning students, and
46.34must continue to provide nonacademic services to online learning students. If a student
46.35completes an online learning course or program that meets or exceeds a graduation
47.1standard or grade progression requirement at the enrolling district, that standard or
47.2requirement is met. The enrolling district must use the same criteria for accepting online
47.3learning credits or courses as it does for accepting credits or courses for transfer students
47.4under section 124D.03, subdivision 9. The enrolling district may reduce the teacher
47.5contact time course schedule of an online learning student in proportion to the number
47.6of online learning courses the student takes from an online learning provider that is not
47.7the enrolling district.
47.8    (b) An online learning student may:
47.9    (1) enroll in supplemental online learning courses during a single school year in a
47.10maximum of 12 semester-long courses or their equivalent delivered by an online learning
47.11provider or the enrolling district to a maximum of 50 percent of the student's full schedule
47.12of courses per term. A student may exceed the supplemental online learning registration
47.13limit if the enrolling district grants permission for supplemental online learning enrollment
47.14above the limit, or if an agreement is made between the enrolling district and the online
47.15learning provider for instructional services;
47.16    (2) complete course work at a grade level that is different from the student's current
47.17grade level; and
47.18    (3) enroll in additional courses with the online learning provider under a separate
47.19agreement that includes terms for payment of any tuition or course fees.
47.20    (c) An online learning student has the same access to the computer hardware and
47.21education software available in a school as all other students in the enrolling district. An
47.22online learning provider must assist an online learning student whose family qualifies
47.23for the education tax credit under section 290.0674 to acquire computer hardware and
47.24educational software for online learning purposes.
47.25    (d) An enrolling district may offer online learning to its enrolled students. Such
47.26online learning does not generate online learning funds under this section. An enrolling
47.27district that offers online learning only to its enrolled students is not subject to the
47.28reporting requirements or review criteria under subdivision 7. A teacher with a Minnesota
47.29license must assemble and deliver instruction to enrolled students receiving online
47.30learning from an enrolling district. The delivery of instruction occurs when the student
47.31interacts with the computer or the teacher and receives ongoing assistance and assessment
47.32of learning. The instruction may include curriculum developed by persons other than a
47.33teacher with a Minnesota license.
47.34    (e) An online learning provider that is not the enrolling district is subject to
47.35the reporting requirements and review criteria under subdivision 7. A teacher with a
47.36Minnesota license must assemble and deliver instruction to online learning students. The
48.1delivery of instruction occurs when the student interacts with the computer or the teacher
48.2and receives ongoing assistance and assessment of learning. The instruction may include
48.3curriculum developed by persons other than a teacher with a Minnesota license. Unless
48.4the commissioner grants a waiver, a teacher providing online learning instruction must not
48.5instruct more than 40 students in any one online learning course or program.
48.6    (f) To enroll in more than 50 percent of the student's full schedule of courses per term
48.7in online learning, the student must qualify to exceed the supplemental online learning
48.8registration limit under paragraph (b) or apply for enrollment to an approved full-time
48.9online learning program following appropriate procedures in subdivision 3, paragraph (a).
48.10Full-time online learning students may enroll in classes at a local school per contract for
48.11instructional services between the online learning provider and the school district.

48.12    Sec. 25. Minnesota Statutes 2006, section 124D.095, subdivision 7, is amended to read:
48.13    Subd. 7. Department of Education. (a) The department must review and certify
48.14online learning providers. The online learning courses and programs must be rigorous,
48.15aligned with state academic standards, and contribute to grade progression in a single
48.16subject. Online learning providers must affirm demonstrate to the commissioner that
48.17online learning courses have equivalent standards or instruction, curriculum, and
48.18assessment requirements as other courses offered to enrolled students. The online learning
48.19provider must also demonstrate expectations for actual teacher contact time or other
48.20student-to-teacher communication. Once an online learning provider is approved under
48.21this paragraph, all of its online learning course offerings are eligible for payment under
48.22this section unless a course is successfully challenged by an enrolling district or the
48.23department under paragraph (b).
48.24    (b) An enrolling district may challenge the validity of a course offered by an online
48.25learning provider. The department must review such challenges based on the certification
48.26procedures under paragraph (a). The department may initiate its own review of the validity
48.27of an online learning course offered by an online learning provider.
48.28    (c) The department may collect a fee not to exceed $250 for certifying online
48.29learning providers or $50 per course for reviewing a challenge by an enrolling district.
48.30    (d) The department must develop, publish, and maintain a list of approved online
48.31learning providers and online learning courses and programs that it has reviewed and
48.32certified.

48.33    Sec. 26. Minnesota Statutes 2006, section 124D.10, subdivision 4, is amended to read:
49.1    Subd. 4. Formation of school. (a) A sponsor may authorize one or more licensed
49.2teachers under section 122A.18, subdivision 1, to operate a charter school subject to
49.3approval by the commissioner. A board must vote on charter school application for
49.4sponsorship no later than 90 days after receiving the application. After 90 days, the
49.5applicant may apply to the commissioner. If a board elects not to sponsor a charter school,
49.6the applicant may appeal the board's decision to the commissioner who may elect to assist
49.7the applicant in finding an eligible sponsor. The school must be organized and operated as
49.8a cooperative under chapter 308A or nonprofit corporation under chapter 317A and the
49.9provisions under the applicable chapter shall apply to the school except as provided in this
49.10section. Notwithstanding sections 465.717 and 465.719, a school district may create a
49.11corporation for the purpose of creating a charter school.
49.12    (b) Before the operators may form and operate a school, the sponsor must file an
49.13affidavit with the commissioner stating its intent to authorize a charter school. The
49.14affidavit must state the terms and conditions under which the sponsor would authorize a
49.15charter school and how the sponsor intends to oversee the fiscal and student performance
49.16of the charter school and to comply with the terms of the written contract between the
49.17sponsor and the charter school board of directors under subdivision 6. The commissioner
49.18must approve or disapprove the sponsor's proposed authorization within 90 days of
49.19receipt of the affidavit. Failure to obtain commissioner approval precludes a sponsor from
49.20authorizing the charter school that was the subject of the affidavit.
49.21    (c) The operators authorized to organize and operate a school, before entering into
49.22a contract or other agreement for professional or other services, goods, or facilities,
49.23must incorporate as a cooperative under chapter 308A or as a nonprofit corporation
49.24under chapter 317A and must establish a board of directors composed of at least five
49.25members until a timely election for members of the charter school board of directors is
49.26held according to the school's articles and bylaws. A charter school board of directors
49.27must be composed of at least five members. Any staff members who are employed at the
49.28school, including teachers providing instruction under a contract with a cooperative, and
49.29all parents of children enrolled in the school may participate in the election for members
49.30of the school's board of directors. Licensed teachers employed at the school, including
49.31teachers providing instruction under a contract with a cooperative, must be a majority
49.32of the members of the board of directors before the school completes its third year of
49.33operation, unless the commissioner waives the requirement for a majority of licensed
49.34teachers on the board. Board of director meetings must comply with chapter 13D.
49.35    (d) The granting or renewal of a charter by a sponsoring entity must not be
49.36conditioned upon the bargaining unit status of the employees of the school.
50.1    (e) A sponsor may authorize the operators of a charter school to expand the
50.2operation of the charter school to additional sites or to add additional grades at the school
50.3beyond those described in the sponsor's application as approved by the commissioner only
50.4after submitting a supplemental application to the commissioner in a form and manner
50.5prescribed by the commissioner. The supplemental application must provide evidence that:
50.6    (1) the expansion of the charter school is supported by need and projected enrollment;
50.7    (2) the charter school is fiscally sound;
50.8    (3) the sponsor supports the expansion; and
50.9    (4) the building of the additional site meets all health and safety requirements to
50.10be eligible for lease aid.
50.11    (f) The commissioner annually must provide timely financial management training
50.12to newly elected members of a charter school board of directors and ongoing training to
50.13other members of a charter school board of directors. Training must address ways to:
50.14    (1) proactively assess opportunities for a charter school to maximize all available
50.15revenue sources;
50.16    (2) establish and maintain complete, auditable records for the charter school;
50.17    (3) establish proper filing techniques;
50.18    (4) document formal actions of the charter school, including meetings of the charter
50.19school board of directors;
50.20    (5) properly manage and retain charter school and student records;
50.21    (6) comply with state and federal payroll record-keeping requirements; and
50.22    (7) address other similar factors that facilitate establishing and maintaining complete
50.23records on the charter school's operations.

50.24    Sec. 27. Minnesota Statutes 2006, section 124D.10, subdivision 23a, is amended to
50.25read:
50.26    Subd. 23a. Related party lease costs. (a) A charter school is prohibited from
50.27entering a lease of real property with a related party as defined in this subdivision 26, unless
50.28the lessor is a nonprofit corporation under chapter 317A or a cooperative under chapter
50.29308A, and the lease cost is reasonable under section 124D.11, subdivision 4, clause (1).
50.30    (b) For purposes of this subdivision section and section 124D.11:
50.31    (1) A "related party" is an affiliate or close relative of the other party in question, an
50.32affiliate of a close relative, or a close relative of an affiliate.
50.33    (2) "Affiliate" means a person that directly, or indirectly through one or more
50.34intermediaries, controls, or is controlled by, or is under common control with, another
50.35person.
51.1    (3) "Close relative" means an individual whose relationship by blood, marriage, or
51.2adoption to another individual is no more remote than first cousin.
51.3    (4) "Person" means an individual or entity of any kind.
51.4    (5) "Control" includes the terms "controlling," "controlled by," and "under common
51.5control with" and means the possession, direct or indirect, of the power to direct or cause
51.6the direction of the management, operations, or policies of a person, whether through the
51.7ownership of voting securities, by contract, or otherwise.
51.8    (c) A lease of real property to be used for a charter school, not excluded in paragraph
51.9(b) (a), must contain the following statement: "This lease is subject to Minnesota Statutes,
51.10section 124D.10, subdivision 23a."
51.11    (d) If a charter school enters into as lessee a lease with a related party and the
51.12charter school subsequently closes, the commissioner has the right to recover from the
51.13lessor any lease payments in excess of those that are reasonable under section 124D.11,
51.14subdivision 4
, clause (1).

51.15    Sec. 28. Minnesota Statutes 2006, section 124D.10, subdivision 24, is amended to read:
51.16    Subd. 24. Pupil enrollment upon nonrenewal or termination of charter school
51.17contract. If a contract is not renewed or is terminated according to subdivision 23, a
51.18pupil who attended the school, siblings of the pupil, or another pupil who resides in the
51.19same place as the pupil may enroll in the resident district or may submit an application
51.20to a nonresident district according to section 124D.03 at any time. Applications and
51.21notices required by section 124D.03 must be processed and provided in a prompt manner.
51.22The application and notice deadlines in section 124D.03 do not apply under these
51.23circumstances. The closed charter school must transfer the student's educational records
51.24within ten business days of closure to the student's school district of residence where the
51.25records must be retained or transferred under section 120A.22, subdivision 7.

51.26    Sec. 29. [124D.645] MULTIRACIAL DIVERSITY.
51.27    (a) Notwithstanding other law or rule to the contrary and in order to effectively
51.28meet students' educational needs and foster parents' meaningful participation in their
51.29children's education, a school district may apply to the commissioner for a waiver from
51.30the requirement to maintain racial balance within a district school if the racial imbalance
51.31in that school results from:
51.32    (1) the enrollment of protected multiracial students and the proportion of enrolled
51.33multiracial students reflects the proportion of multiracial students who reside in the school
51.34attendance area or who are enrolled in the grade levels served by the district; or
52.1    (2) the enrollment of limited English proficiency students in a transition program
52.2that includes an intensive English component.
52.3The commissioner must grant the waiver if the district in which the school is located offers
52.4the multiracial students or the limited English proficiency students, as appropriate, the
52.5option of enrolling in another school with the requisite racial balance, and the students'
52.6parents choose not to pursue that option.
52.7    (b) This section is effective for the 2006-2007 through 2010-2011 school years or
52.8until amended rules are adopted under Minnesota Rules, chapter 3535, pertaining to racial
52.9diversity, whichever comes first.
52.10EFFECTIVE DATE.This section is effective the day following final enactment.

52.11    Sec. 30. Minnesota Statutes 2006, section 124D.84, subdivision 1, is amended to read:
52.12    Subdivision 1. Awards. The commissioner may award director of the Office
52.13of Higher Education shall establish procedures for the distribution of scholarships to
52.14any Minnesota resident student who is of one-fourth or more Indian ancestry, who has
52.15applied for other existing state and federal scholarship and grant programs, and who, in
52.16the opinion of the commissioner director of the Office of Higher Education, based upon
52.17postsecondary institution recommendations, has the capabilities to benefit from further
52.18education. Scholarships must be for accredited degree programs in accredited Minnesota
52.19colleges or universities or for courses in accredited Minnesota business, technical, or
52.20vocational schools. Scholarships may also be given to students attending Minnesota
52.21colleges that are in candidacy status for obtaining full accreditation, and are eligible for
52.22and receiving federal financial aid programs. Students are also eligible for scholarships
52.23when enrolled as students in Minnesota higher education institutions that have joint
52.24programs with other accredited higher education institutions. Scholarships shall be used
52.25to defray the total cost of education including tuition, incidental fees, books, supplies,
52.26transportation, other related school costs and the cost of board and room and shall be paid
52.27directly to the college or school concerned where the student receives federal financial
52.28aid. The total cost of education includes all tuition and fees for each student enrolling in a
52.29public institution and the portion of tuition and fees for each student enrolling in a private
52.30institution that does not exceed the tuition and fees at a comparable public institution.
52.31Each student shall be awarded a scholarship based on the total cost of the student's
52.32education and a federal standardized need analysis after application of federal Pell money,
52.33state grant money, and other scholarships. Depending upon students' unmet needs, the
52.34Minnesota Indian scholarship program may award up to the current federal Pell grant
53.1allowable maximum student award per school year. Applicants are encouraged to apply
53.2for all other sources of financial aid.
53.3    When an Indian student satisfactorily completes the work required by a certain
53.4college or school in a school year the student is eligible for additional scholarships, if
53.5additional training is necessary to reach the student's educational and vocational objective.
53.6Scholarships may not be given to any Indian student for more than five years of study at
53.7the undergraduate level and five years at the graduate level. Students may acquire only
53.8one degree per level and one terminal degree.

53.9    Sec. 31. Minnesota Statutes 2006, section 127A.095, subdivision 2, is amended to read:
53.10    Subd. 2. No Child Left Behind review. (a) The legislature intends to require
53.11the Department of Education to conduct a comprehensive review of the consolidated
53.12state plan the state submitted to the federal Department of Education to implement the
53.13No Child Left Behind Act. The Minnesota Department of Education shall seek waivers
53.14under paragraph (b). If the Department of Education is unable to obtain waivers under
53.15paragraph (b), it should recommend in its report under paragraph (b) whether the state
53.16should opt out of the No Child Left Behind Act.
53.17    (b) The commissioner, by January 15, 2007 2008, shall report to the house of
53.18representatives and senate committees having jurisdiction over kindergarten through grade
53.1912 education policy and finance whether the department has received approval from
53.20the federal Department of Education to:
53.21    (1) allow the state to develop a plan for determining adequate yearly progress that
53.22uses multiple measures of student achievement that include value-added measurement of
53.23student achievement in addition to standardized test results to evaluate school and student
53.24performance participate in the growth model pilot program;
53.25    (2) exclude from sanctions a school that is classified as not having made adequate
53.26yearly progress due solely to different subgroups testing below proficient levels for at
53.27least two consecutive years;
53.28    (3) allow the state to average three years of data for the purposes of identifying a
53.29school for improvement;
53.30    (4) allow the state to use No Child Left Behind Act money to provide supplemental
53.31education services only in the academic subject area that causes a school to miss adequate
53.32yearly progress;
53.33    (5) exclude from sanctions schools that have not made adequate yearly progress due
53.34solely to a subgroup of students with disabilities not testing at a proficient level;
54.1    (6) (3) identify a school as not making adequate yearly progress only after the school
54.2has missed the adequate yearly progress targets in the same subject and subgroup for two
54.3consecutive years;
54.4    (7) limit the score of a student within multiple subgroups to the smallest subgroup in
54.5which that student is included when calculating adequate yearly progress;
54.6    (8) (4) determine when to hold schools accountable for including a student with
54.7limited English proficiency in adequate yearly progress calculations; and
54.8    (9) use a fully computer-adaptive test for purposes of compliance with the No Child
54.9Left Behind Act
54.10    (5) allow a district not making adequate yearly progress to offer supplemental
54.11educational services as an option before offering school choice;
54.12    (6) allow a district not making adequate yearly progress to also be the supplemental
54.13educational services provider;
54.14    (7) allow the state to maintain a subgroup size to 40 for the purposes of calculating
54.15adequate yearly progress for subgroups of students with limited English proficiency and
54.16subgroups of students with disabilities; and
54.17    (8) create flexibility to enable the state to define and identify highly qualified
54.18teachers.

54.19    Sec. 32. Laws 2005, First Special Session chapter 5, article 2, section 81, as amended
54.20by Laws 2006, chapter 263, article 2, section 20, is amended to read:
54.21    Sec. 81. BOARD OF SCHOOL ADMINISTRATORS; RULEMAKING
54.22AUTHORITY.
54.23    (a) On or before June 30, 2007 2008, the Board of School Administrators may adopt
54.24rules to reflect the changes in duties, responsibilities, and roles of school administrators
54.25under sections 121A.035, 121A.037 and 299F.30, and to make technical revisions and
54.26clarifications to Minnesota Rules, chapter 3512.
54.27    (b) Any rules the board adopts under the authority in paragraph (a) must retain the
54.28requirement in effect in calendar year 2006 governing classroom teaching experience for
54.29licensure as a principal.
54.30EFFECTIVE DATE.This section is effective the day following final enactment.

54.31    Sec. 33. RULEMAKING REQUIRED.
54.32    (a) Notwithstanding the time limit in Minnesota Statutes, section 14.125, the Board
54.33of Teaching must adopt the rules it was mandated to adopt under Laws 2003, chapter 129,
55.1article 1, section 10. The board must publish a notice of intent to adopt rules or a notice of
55.2hearing for rules subject to this section before January 1, 2008.
55.3    (b) The Board of Teaching may charge fees to issue new credentials and to renew
55.4credentials for paraprofessionals issued credentials under the rules adopted under this
55.5section.
55.6EFFECTIVE DATE.This section is effective the day following final enactment.

55.7    Sec. 34. RULEMAKING AUTHORIZED; SUPPLEMENTAL EDUCATION
55.8SERVICE PROVIDERS.
55.9    The commissioner of education must amend Minnesota Rules, part 3512.5400,
55.10consistent with the requirements under Minnesota Statutes, chapter 14, to include
55.11specifications that provide the basis for withdrawing Department of Education approval
55.12from supplemental education service providers that fail to increase students' academic
55.13proficiency for two consecutive school years. The amended rule also must clearly indicate:
55.14    (1) how the Department of Education will distinguish the effect of supplemental
55.15education from the effect of regular school instruction on students' academic performance;
55.16and
55.17    (2) whether the Department of Education will assess effectiveness of the
55.18supplemental education service providers using an absolute measure, such as percent of
55.19"proficient" students or measure individual students' growth toward proficiency over time.
55.20EFFECTIVE DATE.This section is effective the day following final enactment.

55.21    Sec. 35. RULEMAKING AUTHORITY.
55.22    The commissioner of education shall adopt rules for implementing and administering
55.23the graduation-required assessment for diploma (GRAD) in reading and mathematics
55.24and in writing, consistent with Minnesota Statutes, section 120B.30, subdivision 1, and
55.25for public review of the GRAD test. The rules must specify the GRAD requirements
55.26that apply to students in unique circumstances including dual enrolled students, English
55.27language learners, foreign exchange students, home school students, open enrollment
55.28students, Minnesota postsecondary enrollment options students, shared-time students,
55.29transfer students from other states, and district-placed students and students attending
55.30school under a tuition agreement. The rules must establish the criteria for determining
55.31individualized GRAD passing scores for students with an individual education plan or
55.32a Section 504 plan and for using an alternative assessment when a student's individual
55.33education plan team decides to replace the GRAD test.
56.1EFFECTIVE DATE.This section is effective the day following final enactment.

56.2    Sec. 36. GRANT PROGRAM TO PROMOTE PROFESSIONAL TEACHING
56.3STANDARDS.
56.4    Subdivision 1. Establishment. A grant program to promote professional teaching
56.5standards through the National Board for Professional Teaching Standards is established to
56.6provide teachers with the opportunity to receive National Board for Professional Teaching
56.7Standards certification and to reward teachers who have already received this certification.
56.8    Subd. 2. Eligibility. An applicant for a grant must:
56.9    (1) be a licensed teacher employed in a Minnesota public school;
56.10    (2) have a minimum of five school years' classroom teaching experience; and
56.11    (3) demonstrate acceptance by the National Board for Professional Teaching
56.12Standards as a candidate for board certification or as a recipient of board certification.
56.13    Subd. 3. Application process. To obtain a grant to participate in the National Board
56.14for Professional Teaching Standards certification process or to receive a reward for already
56.15completing the board certification process, a teacher must submit an application to the
56.16commissioner of education in the form and manner established by the commissioner. The
56.17commissioner shall consult with the Board of Teaching when reviewing the applications.
56.18The commissioner shall also provide program support to assist applicants during the
56.19national board certification process.
56.20    Subd. 4. Grant awards; proceeds. (a) The commissioner may award grants of
56.21$1,000 to eligible teachers accepted as candidates for the National Board for Professional
56.22Teaching Standards certification or for national board certification renewal for partial
56.23payment of the teacher's candidate application fee.
56.24    (b) The commissioner shall award grants of $3,000 to all eligible teacher applicants
56.25who hold certification from the National Board for Professional Teaching Standards and
56.26$2,000 for renewal of their national board certification.
56.27    (c) The commissioner shall also award grants to eligible teachers who have received
56.28National Board for Professional Teaching Standards certification within one year prior to
56.29the date of the teacher's application for a grant to use for educational purposes, including
56.30purchasing instructional materials, equipment, or supplies, and pursuing professional
56.31development opportunities. The commissioner, under this paragraph, may award grants not
56.32to exceed $1,000 after consulting with interested stakeholders regarding the grant amount.

56.33    Sec. 37. WORLD LANGUAGES PILOT PROGRAM GRANTS.
57.1    (a) A pilot program awarding five world languages grants to interested and qualified
57.2school sites and school districts is established for fiscal year 2009 to develop and
57.3implement sustainable, high-quality model world languages programs and to enhance
57.4existing world languages programs at various grade levels for students in kindergarten
57.5through grade 12. Program participants must simultaneously support both non-English
57.6language learners in maintaining their native language while mastering English and native
57.7English speakers in learning other languages.
57.8    (b) Interested school sites and school districts must apply to the commissioner of
57.9education in the form and manner the commissioner determines. The application must
57.10indicate whether the applicant intends to develop a new world languages program or
57.11expand an existing world languages program and whether the applicant intends to offer
57.12more intensive programs or programs that are readily accessible to larger numbers of
57.13students. Applicants must agree to disseminate information about their programs to
57.14interested school sites and school districts.
57.15    (c) The commissioner must award grants to qualified applicants that satisfy the
57.16requirements in paragraphs (a) and (b). To the extent there are qualified applicants, the
57.17commissioner must award grants to qualified applicants on an equitable geographic
57.18basis to the extent feasible. The commissioner must award three grants to kindergarten
57.19through grade 8 sites, one grant to a qualified site interested in developing or enhancing a
57.20sustainable Mandarin Chinese program, and one grant to an indigenous American Indian
57.21world languages program. Grantees must expend the grant consistent with the content of
57.22their application and this section.
57.23    (d) The commissioner shall provide for an evaluation of the grantees to identify
57.24exemplary model world languages programs and the staff development needs of world
57.25languages teachers and report the findings of the evaluation to the education policy and
57.26finance committees of the legislature by February 15, 2010.
57.27EFFECTIVE DATE.This section is effective for the 2007-2008 school year.

57.28    Sec. 38. BILINGUAL AND MULTILINGUAL CERTIFICATES; DEPARTMENT
57.29OF EDUCATION.
57.30    The Department of Education, in consultation with interested stakeholders, must
57.31develop and recommend to the legislature by February 15, 2008, the standards and process
57.32for awarding bilingual and multilingual certificates to those kindergarten through grade
57.3312 students who demonstrate and maintain a requisite level of proficiency in multiple
57.34languages.
58.1EFFECTIVE DATE.This section is effective the day following final enactment.

58.2    Sec. 39. SCHOOL PERFORMANCE REPORT CARDS; ADVISORY GROUP
58.3RECOMMENDATIONS.
58.4    (a) To sustain equity and excellence in education, the Independent Office of
58.5Educational Accountability under Minnesota Statutes, section 120B.31, subdivision 3,
58.6must convene and facilitate an advisory group of curriculum and measurement experts
58.7to consider and recommend how to structure school performance data and school
58.8performance report cards under Minnesota Statutes, section 120B.36, subdivision 1, to
58.9fully, fairly, and accurately report student achievement and emphasize school excellence
58.10under Minnesota's system of educational accountability and public reporting. The advisory
58.11group at least must consider and recommend how to: evaluate student achievement using
58.12multiple measures of growth that take into account student demographic characteristics,
58.13consistent with Minnesota Statutes, section 120B.31, subdivision 4; and identify
58.14outstanding schools based on student achievement and achievement growth and using
58.15multiple performance measures that are objective and consistent with the highest standards
58.16in the field of educational measurements and accountability. The advisory group, at its
58.17discretion, may also consider and make recommendations on other related statewide
58.18accountability and reporting matters.
58.19    (b) Advisory group members under paragraph (a) include: two qualified experts in
58.20measurement in education selected by the State Council on Measurement in Education;
58.21one qualified expert in elementary curriculum and one qualified expert in secondary
58.22curriculum selected by the Minnesota Association for Supervision and Curriculum
58.23Development; three regionally diverse school district research and evaluation directors
58.24selected by the Minnesota Assessment Group; one school superintendent selected by the
58.25Minnesota Association of School Administrators; one University of Minnesota faculty
58.26selected by the dean of the College of Education and Human Development; one licensed
58.27teacher selected by Education Minnesota; two parents selected by the Minnesota Parent
58.28Teachers Association with expertise in measurement in education; and the director of
58.29evaluation and testing at the Minnesota Department of Education. Advisory group
58.30members' terms and other advisory group matters are subject to Minnesota Statutes,
58.31section 15.059, subdivision 6. The Independent Office of Educational Accountability
58.32must present the advisory group's recommendations under paragraph (a) to the education
58.33policy and finance committees of the legislature by February 15, 2008. The advisory
58.34group expires February 16, 2008.
58.35EFFECTIVE DATE.This section is effective the day following final enactment.

59.1    Sec. 40. ADVISORY TASK FORCE ON MINNESOTA AMERICAN INDIAN
59.2TRIBES AND COMMUNITIES AND K-12 STANDARDS-BASED REFORM.
59.3    Subdivision 1. Duties. An advisory task force on Minnesota American Indian tribes
59.4and communities and K-12 standards-based reform is established to examine the impact of
59.5state and federal standards-based reform on Minnesota's K-12 students, with particular
59.6attention to the impacts on American Indian students enrolled in Minnesota schools.
59.7The task force, in consultation with American Indian educators, parents, and others who
59.8advocate for American Indian children, must determine if:
59.9    (1) state education standards and assessments are appropriate for American Indian
59.10students;
59.11    (2) American Indian students are fairly compared;
59.12    (3) American Indian students receive the assistance they need to achieve the state
59.13standards; and
59.14    (4) schools receive financial and technical assistance sufficient to meet the
59.15educational needs of American Indian students.
59.16    Subd. 2. Membership. (a) The commissioner of education shall appoint
59.17representatives from the following organizations and agencies to the task force:
59.18    (1) Department of Education staff experienced in working with American Indian
59.19students and programs;
59.20    (2) Minnesota American Indian tribes and communities;
59.21    (3) the Minnesota School Board Association;
59.22    (4) school administrators;
59.23    (5) Education Minnesota;
59.24    (6) the state Board of Teaching;
59.25    (7) the Minnesota Council on Indian Affairs;
59.26    (8) postsecondary faculty who serve as instructors in teacher preparation programs;
59.27and
59.28    (9) local community service providers who work with Minnesota American Indian
59.29tribes and communities.
59.30    (b) After the task force has been convened, the commissioner of education may
59.31appoint additional public members recommended by members of the task force.
59.32    Subd. 3. Organization; compensation. (a) The commissioner shall complete
59.33appointments to the task force, under subdivision 2, paragraph (a), by September 1, 2007.
59.34The commissioner of education or the commissioner's designee shall convene the first
59.35meeting of the task force within 30 days after the appointments are completed. The task
59.36force shall select a chair from its membership at the first meeting.
60.1    (b) Vacancies, renewal, and compensation of members are as provided in Minnesota
60.2Statutes, section 15.059, subject to the availability of appropriations.
60.3    (c) The commissioner of education must provide the task force with administrative
60.4and clerical support.
60.5    Subd. 4. Recommendations. By February 15, 2008, the task force must report
60.6recommendations and suggest implementing legislation to the legislative committees and
60.7divisions with jurisdiction over education policy and finance regarding the changes, if
60.8any, to the state's educational performance standards, content requirements, assessments
60.9measures, and teacher preparation programs that will enable Minnesota schools to most
60.10effectively meet the educational needs of American Indian students consistent with
60.11Minnesota Statutes, sections 124D.71 to 124D.82.
60.12    Subd. 5. Expiration. This section expires the day following the submission of the
60.13report required by subdivision 4.
60.14EFFECTIVE DATE.This section is effective the day following final enactment.

60.15    Sec. 41. AMERICAN INDIAN SCHOLARSHIP.
60.16    Administration of the American Indian scholarship program under Minnesota
60.17Statutes, section 124D.84, is transferred from the Department of Education to the
60.18Minnesota Office of Higher Education. The director of the Minnesota Office of Higher
60.19Education must contract with at least one knowledgeable person residing in or near the
60.20city of Bemidji to assist students with the scholarships under Minnesota Statutes, section
60.21124D.84, subdivision 1, and with other information about financial aid for which the
60.22students may be eligible.

60.23    Sec. 42. APPROPRIATIONS.
60.24    Subdivision 1. Minnesota Office of Higher Education. The sums indicated in
60.25this section are appropriated from the general fund to the Minnesota Office of Higher
60.26Education for the fiscal years designated.
60.27    Subd. 2. American Indian scholarships. For American Indian scholarships under
60.28Minnesota Statutes, section 124D.84:
60.29
$
1,950,000
.....
2008
60.30
$
1,950,000
.....
2009
60.31    Of this appropriation, $75,000 each year is for administration under section 41.

60.32    Sec. 43. APPROPRIATIONS.
61.1    Subdivision 1. Board of Regents of the University of Minnesota. The sums
61.2indicated in this section are appropriated from the general fund to the Board of Regents of
61.3the University of Minnesota for the fiscal years designated.
61.4    Subd. 2. Independent Office of Educational Accountability. For the Independent
61.5Office of Educational Accountability under Minnesota Statutes, section 120B.31,
61.6subdivision 3:
61.7
$
200,000
.....
2008
61.8
$
200,000
.....
2009
61.9    This is a onetime appropriation.

61.10    Sec. 44. APPROPRIATIONS.
61.11    Subdivision 1. Department. The sums indicated in this section are appropriated
61.12from the general fund to the Department of Education for the fiscal years designated.
61.13    Subd. 2. Charter school building lease aid. For building lease aid under Minnesota
61.14Statutes, section 124D.11, subdivision 4:
61.15
$
31,875,000
.....
2008
61.16
$
36,193,000
.....
2009
61.17    The 2008 appropriation includes $2,814,000 for 2007 and $29,061,000 for 2008.
61.18    The 2009 appropriation includes $3,229,000 for 2008 and $32,964,000 for 2009.
61.19    Subd. 3. Charter school startup cost aid. For charter school startup cost aid
61.20under Minnesota Statutes, section 124D.11:
61.21
$
1,896,000
.....
2008
61.22
$
2,161,000
.....
2009
61.23    The 2008 appropriation includes $241,000 for 2007 and $1,655,000 for 2008.
61.24    The 2009 appropriation includes $183,000 for 2008 and $1,978,000 for 2009.
61.25    Subd. 4. Integration aid. For integration aid under Minnesota Statutes, section
61.26124D.86, subdivision 5:
61.27
$
61,769,000
.....
2008
61.28
$
61,000,000
.....
2009
61.29    The 2008 appropriation includes $5,824,000 for 2007 and $55,945,000 for 2008.
61.30    The 2009 appropriation includes $6,216,000 for 2008 and $54,784,000 for 2009.
61.31    Subd. 5. Magnet school program grants. For magnet school program grants:
62.1
$
750,000
.....
2008
62.2
$
750,000
.....
2009
62.3    These amounts may be used for magnet school programs under Minnesota Statutes,
62.4section 124D.871.
62.5    Up to $100,000 each year is available for site-based decision-making grant proposals
62.6that meet the goals outlined in section 124D.871 under Minnesota Statutes, section
62.7123B.04, subdivision 2, paragraph (g).
62.8    Any balance in the first year does not cancel but is available in the second year.
62.9    Subd. 6. Interdistrict desegregation or integration transportation grants. For
62.10interdistrict desegregation or integration transportation grants under Minnesota Statutes,
62.11section 124D.87:
62.12
$
9,639,000
.....
2008
62.13
$
11,567,000
.....
2009
62.14    Subd. 7. Success for the future. For American Indian success for the future grants
62.15under Minnesota Statutes, section 124D.81:
62.16
$
2,137,000
.....
2008
62.17
$
2,137,000
.....
2009
62.18    The 2008 appropriation includes $213,000 for 2007 and $1,924,000 for 2008.
62.19    The 2009 appropriation includes $213,000 for 2008 and $1,924,000 for 2009.
62.20    Subd. 8. American Indian teacher preparation grants. For joint grants to assist
62.21American Indians to become teachers under Minnesota Statutes, section 122A.63:
62.22
$
190,000
.....
2008
62.23
$
190,000
.....
2009
62.24    Subd. 9. Tribal contract schools. For tribal contract school aid under Minnesota
62.25Statutes, section 124D.83:
62.26
$
2,212,000
.....
2008
62.27
$
2,380,000
.....
2009
62.28    The 2008 appropriation includes $204,000 for 2007 and $2,008,000 for 2008.
62.29    The 2009 appropriation includes $223,000 for 2008 and $2,157,000 for 2009.
62.30    Subd. 10. Early childhood programs at tribal schools. For early childhood
62.31family education programs at tribal contract schools under Minnesota Statutes, section
62.32124D.83, subdivision 4:
63.1
$
68,000
.....
2008
63.2
$
68,000
.....
2009
63.3    Subd. 11. Statewide testing and reporting system. For the statewide testing and
63.4reporting system under Minnesota Statutes, section 120B.30:
63.5
$
10,150,000
.....
2008
63.6
$
10,150,000
.....
2009
63.7    Any testing contracts awarded by the commissioner using appropriations in this
63.8subdivision must include as part of that testing contract a method to vertically link testing
63.9questions across grade levels for the purposes of working towards a statewide growth
63.10model.
63.11    $1,150,000 each year is for the value-added index assessment model.
63.12    Any balance in the first year does not cancel but is available in the second year.
63.13    Subd. 12. Examination fees; teacher training and support programs. (a) For
63.14students' advanced placement and international baccalaureate examination fees under
63.15Minnesota Statutes, section 120B.13, subdivision 3, and the training and related costs
63.16for teachers and other interested educators under Minnesota Statutes, section 120B.13,
63.17subdivision 1:
63.18
$
4,500,000
.....
2008
63.19
$
4,500,000
.....
2009
63.20    (b) The advanced placement program shall receive 75 percent of the appropriation
63.21each year and the international baccalaureate program shall receive 25 percent of the
63.22appropriation each year. The department, in consultation with representatives of the
63.23advanced placement and international baccalaureate programs selected by the Advanced
63.24Placement Advisory Council and IBMN, respectively, shall determine the amounts of
63.25the expenditures each year for examination fees and training and support programs for
63.26each program.
63.27    (c) Notwithstanding Minnesota Statutes, section 120B.13, subdivision 1, at least
63.28$500,000 each year is for teachers to attend subject matter summer training programs
63.29and follow-up support workshops approved by the advanced placement or international
63.30baccalaureate programs. The amount of the subsidy for each teacher attending an
63.31advanced placement or international baccalaureate summer training program or workshop
63.32shall be the same. The commissioner shall determine the payment process and the amount
63.33of the subsidy.
63.34    (d) The commissioner shall pay all examination fees for all students of low-income
63.35families under Minnesota Statutes, section 120B.13, subdivision 3, and to the extent
64.1of available appropriations shall also pay examination fees for students sitting for an
64.2advanced placement examination, international baccalaureate examination, or both.
64.3    Any balance in the first year does not cancel but is available in the second year.
64.4    Subd. 13. Preadvanced placement, advanced placement, international
64.5baccalaureate, and concurrent enrollment programs. For preadvanced placement,
64.6advanced placement, international baccalaureate, and concurrent enrollment programs
64.7under Minnesota Statutes, sections 120B.132 and 124D.091:
64.8
$
2,000,000
.....
2008
64.9
$
2,000,000
.....
2009
64.10    Of this amount, $700,000 each year is for concurrent enrollment program aid
64.11under Minnesota Statutes, section 124D.091. If the appropriation is insufficient, the
64.12commissioner must proportionately reduce the aid payment to each district.
64.13    Subd. 14. Collaborative urban educator. For collaborative urban educator grants
64.14under Minnesota Statutes, section 122A.641:
64.15
$
528,000
.....
2008
64.16
$
528,000
.....
2009
64.17    $210,000 each year is for the Southeast Asian teacher program at Concordia
64.18University, St. Paul; $159,000 each year is for the collaborative urban educator program at
64.19the University of St. Thomas; and $159,000 each year is for the Center for Excellence in
64.20Urban Teaching at Hamline University. Grant recipients must collaborate with urban and
64.21nonurban school districts.
64.22    Any balance in the first year does not cancel but is available in the second year.
64.23    Subd. 15. Youth works program. For funding youth works programs under
64.24Minnesota Statutes, sections 124D.37 to 124D.45:
64.25
$
900,000
.....
2008
64.26
$
900,000
.....
2009
64.27    A grantee organization may provide health and child care coverage to the dependents
64.28of each participant enrolled in a full-time youth works program to the extent the coverage
64.29is not otherwise available.
64.30    Subd. 16. Early childhood literacy programs. For early childhood literacy
64.31programs under Minnesota Statutes, section 119A.50, subdivision 3:
64.32
$
1,000,000
.....
2008
64.33
$
1,000,000
.....
2009
65.1    $500,000 each year is for leveraging federal and private funding to support
65.2AmeriCorps members serving in the Minnesota Reading Corps program established by
65.3Serve Minnesota, including costs associated with the training and teaching of early literacy
65.4skills to children age three to grade 3 and the evaluation of the impact of the program
65.5under Minnesota Statutes, section 124D.42, subdivision 8.
65.6    $500,000 each year is for grants for early childhood literacy programs under
65.7Minnesota Statutes, section 119A.50, subdivision 3, paragraph (a).
65.8    Any balance in the first year does not cancel but is available in the second year.
65.9    Subd. 17. St. Croix River Education District. For a grant to the St. Croix River
65.10Education District:
65.11
$
500,000
.....
2008
65.12
$
500,000
.....
2009
65.13    These funds must be used to:
65.14    (1) deliver standardized research-based professional development in
65.15problem-solving, including response to intervention, scientifically based reading
65.16instruction, and standards-aligned instruction and assessment;
65.17    (2) provide coaching to targeted districts throughout the state;
65.18    (3) deliver large scale training throughout the state;
65.19    (4) provide ongoing technical assistance to schools;
65.20    (5) assist with implementing professional development content into higher education
65.21instructional curricula; and
65.22    (6) evaluate the effectiveness of project activities.
65.23    This is a onetime appropriation.
65.24    Subd. 18. Student organizations. For student organizations:
65.25
$
725,000
.....
2008
65.26
$
725,000
.....
2009
65.27    $40,000 each year is for student organizations serving health occupations.
65.28    $38,000 each year is for student organizations serving service occupations.
65.29    $88,000 each year is for student organizations serving trade and industry occupations.
65.30    $84,000 each year is for student organizations serving business occupations.
65.31    $131,000 each year is for student organizations serving agriculture occupations.
65.32    $125,000 each year is for student organizations serving family and consumer science
65.33occupations.
65.34    $95,000 each year is for student organizations serving marketing occupations.
65.35    Any balance in the first year does not cancel but is available in the second year.
66.1    Subd. 19. Educational Planning and Assessment System (EPAS) program.
66.2    For the Educational Planning and Assessment System (EPAS) program under Minnesota
66.3Statutes, section 120B.128:
66.4
$
829,000
.....
2008
66.5
$
829,000
.....
2009
66.6    Any balance in the first year does not cancel but is available in the second year.
66.7    Subd. 20. College-level examination program (CLEP). For the college-level
66.8examination program (CLEP) under Minnesota Statutes, section 120B.131:
66.9
$
1,650,000
.....
2008
66.10
$
1,650,000
.....
2009
66.11    Any balance in the first year does not cancel but is available in the second year.
66.12    Subd. 21. World Languages grants. For World Languages grants:
66.13
$
250,000
.....
2008
66.14
$
250,000
.....
2009
66.15    Any balance in the first year does not cancel but is available in the second year.
66.16This is a onetime appropriation.
66.17    Subd. 22. Alternative teacher compensation aid. For alternative teacher
66.18compensation aid under Minnesota Statutes, section 122A.415, subdivision 6:
66.19
$
39,164,000
.....
2009
66.20    The 2009 appropriation includes $0 for fiscal year 2008 and $39,164,000 for fiscal
66.21year 2009.
66.22    Subd. 23. National Board for Professional Teaching Standards. (a) For
66.23professional teacher licensure:
66.24
$
250,000
.....
2008
66.25
$
250,000
.....
2009
66.26    (b) $63,000 of this amount is for grants of $1,000 each to eligible teachers accepted
66.27as candidates for National Board for Professional Teaching Standards certification
66.28according to Minnesota Statutes, section 122A.73, subdivision 4, paragraph (a). The grant
66.29award shall be made to the national board.
66.30    (c) $125,000 of this amount is for grants of $2,000 each to eligible teachers
66.31according to Minnesota Statutes, section 122A.73, subdivision 4, paragraph (b).
67.1    (d) $62,000 of this amount is for grants of up to $1,000 each to eligible teachers who
67.2have received National Board for Professional Teaching Standards certification according
67.3to Minnesota Statutes, section 122A.73, subdivision 4, paragraph (c).
67.4    (e) Any balance in the first year does not cancel but is available in the second year.
67.5    (f) This is a onetime appropriation.
67.6    Subd. 24. Mathematics and science; teacher centers. For teacher centers for
67.7mathematics and science teacher development:
67.8
$
1,500,000
.....
2008
67.9
$
1,500,000
.....
2009
67.10    Any balance in the first year does not cancel but is available in the second year.
67.11    This is a onetime appropriation.

67.12    Sec. 45. REVISOR'S INSTRUCTION.
67.13    (a) The revisor of statutes shall renumber Minnesota Statutes, section 124D.84
67.14to section 136A.126, correct cross-references, and make other necessary corrections to
67.15implement section 41.
67.16    (b) In Minnesota Statutes, the revisor of statutes shall codify Minnesota Statutes,
67.17section 124D.10, subdivision 23a, paragraph (b), as Minnesota Statutes, section 124D.10,
67.18subdivision 26.

67.19    Sec. 46. REPEALER.
67.20Minnesota Statutes 2006, sections 120B.233; 121A.23; and 124D.62, are repealed.

67.21ARTICLE 3
67.22SPECIAL PROGRAMS

67.23    Section 1. Minnesota Statutes 2006, section 123B.92, subdivision 1, is amended to read:
67.24    Subdivision 1. Definitions. For purposes of this section and section 125A.76, the
67.25terms defined in this subdivision have the meanings given to them.
67.26    (a) "Actual expenditure per pupil transported in the regular and excess transportation
67.27categories" means the quotient obtained by dividing:
67.28    (1) the sum of:
67.29    (i) all expenditures for transportation in the regular category, as defined in paragraph
67.30(b), clause (1), and the excess category, as defined in paragraph (b), clause (2), plus
67.31    (ii) an amount equal to one year's depreciation on the district's school bus fleet
67.32and mobile units computed on a straight line basis at the rate of 15 percent per year for
68.1districts operating a program under section 124D.128 for grades 1 to 12 for all students in
68.2the district and 12-1/2 percent per year for other districts of the cost of the fleet, plus
68.3    (iii) an amount equal to one year's depreciation on the district's type three school
68.4buses, as defined in section 169.01, subdivision 6, clause (5), which must be used a
68.5majority of the time for pupil transportation purposes, computed on a straight line basis at
68.6the rate of 20 percent per year of the cost of the type three school buses by:
68.7    (2) the number of pupils eligible for transportation in the regular category, as defined
68.8in paragraph (b), clause (1), and the excess category, as defined in paragraph (b), clause (2).
68.9    (b) "Transportation category" means a category of transportation service provided to
68.10pupils as follows:
68.11    (1) Regular transportation is:
68.12    (i) transportation to and from school during the regular school year for resident
68.13elementary pupils residing one mile or more from the public or nonpublic school they
68.14attend, and resident secondary pupils residing two miles or more from the public
68.15or nonpublic school they attend, excluding desegregation transportation and noon
68.16kindergarten transportation; but with respect to transportation of pupils to and from
68.17nonpublic schools, only to the extent permitted by sections 123B.84 to 123B.87;
68.18    (ii) transportation of resident pupils to and from language immersion programs;
68.19    (iii) transportation of a pupil who is a custodial parent and that pupil's child between
68.20the pupil's home and the child care provider and between the provider and the school, if
68.21the home and provider are within the attendance area of the school;
68.22    (iv) transportation to and from or board and lodging in another district, of resident
68.23pupils of a district without a secondary school; and
68.24    (v) transportation to and from school during the regular school year required under
68.25subdivision 3 for nonresident elementary pupils when the distance from the attendance
68.26area border to the public school is one mile or more, and for nonresident secondary pupils
68.27when the distance from the attendance area border to the public school is two miles or
68.28more, excluding desegregation transportation and noon kindergarten transportation.
68.29    For the purposes of this paragraph, a district may designate a licensed day care
68.30facility, school day care facility, respite care facility, the residence of a relative, or the
68.31residence of a person chosen by the pupil's parent or guardian as the home of a pupil for
68.32part or all of the day, if requested by the pupil's parent or guardian, and if that facility or
68.33residence is within the attendance area of the school the pupil attends.
68.34    (2) Excess transportation is:
68.35    (i) transportation to and from school during the regular school year for resident
68.36secondary pupils residing at least one mile but less than two miles from the public or
69.1nonpublic school they attend, and transportation to and from school for resident pupils
69.2residing less than one mile from school who are transported because of extraordinary
69.3traffic, drug, or crime hazards; and
69.4    (ii) transportation to and from school during the regular school year required under
69.5subdivision 3 for nonresident secondary pupils when the distance from the attendance area
69.6border to the school is at least one mile but less than two miles from the public school
69.7they attend, and for nonresident pupils when the distance from the attendance area border
69.8to the school is less than one mile from the school and who are transported because of
69.9extraordinary traffic, drug, or crime hazards.
69.10    (3) Desegregation transportation is transportation within and outside of the district
69.11during the regular school year of pupils to and from schools located outside their normal
69.12attendance areas under a plan for desegregation mandated by the commissioner or under
69.13court order.
69.14    (4) "Transportation services for pupils with disabilities" is:
69.15    (i) transportation of pupils with disabilities who cannot be transported on a regular
69.16school bus between home or a respite care facility and school;
69.17    (ii) necessary transportation of pupils with disabilities from home or from school to
69.18other buildings, including centers such as developmental achievement centers, hospitals,
69.19and treatment centers where special instruction or services required by sections 125A.03
69.20to 125A.24, 125A.26 to 125A.48, and 125A.65 are provided, within or outside the district
69.21where services are provided;
69.22    (iii) necessary transportation for resident pupils with disabilities required by sections
69.23125A.12 , and 125A.26 to 125A.48;
69.24    (iv) board and lodging for pupils with disabilities in a district maintaining special
69.25classes;
69.26    (v) transportation from one educational facility to another within the district for
69.27resident pupils enrolled on a shared-time basis in educational programs, and necessary
69.28transportation required by sections 125A.18, and 125A.26 to 125A.48, for resident pupils
69.29with disabilities who are provided special instruction and services on a shared-time basis
69.30or if resident pupils are not transported, the costs of necessary travel between public
69.31and private schools or neutral instructional sites by essential personnel employed by the
69.32district's program for children with a disability;
69.33    (vi) transportation for resident pupils with disabilities to and from board and lodging
69.34facilities when the pupil is boarded and lodged for educational purposes; and
69.35    (vii) services described in clauses (i) to (vi), when provided for pupils with
69.36disabilities in conjunction with a summer instructional program that relates to the pupil's
70.1individual education plan or in conjunction with a learning year program established
70.2under section 124D.128.
70.3    For purposes of computing special education base revenue initial aid under section
70.4125A.76, subdivision 2 , the cost of providing transportation for children with disabilities
70.5includes (A) the additional cost of transporting a homeless student from a temporary
70.6nonshelter home in another district to the school of origin, or a formerly homeless student
70.7from a permanent home in another district to the school of origin but only through the end
70.8of the academic year; and (B) depreciation on district-owned school buses purchased after
70.9July 1, 2005, and used primarily for transportation of pupils with disabilities, calculated
70.10according to paragraph (a), clauses (ii) and (iii). Depreciation costs included in the
70.11disabled transportation category must be excluded in calculating the actual expenditure
70.12per pupil transported in the regular and excess transportation categories according to
70.13paragraph (a).
70.14    (5) "Nonpublic nonregular transportation" is:
70.15    (i) transportation from one educational facility to another within the district for
70.16resident pupils enrolled on a shared-time basis in educational programs, excluding
70.17transportation for nonpublic pupils with disabilities under clause (4);
70.18    (ii) transportation within district boundaries between a nonpublic school and a
70.19public school or a neutral site for nonpublic school pupils who are provided pupil support
70.20services pursuant to section 123B.44; and
70.21    (iii) late transportation home from school or between schools within a district for
70.22nonpublic school pupils involved in after-school activities.
70.23    (c) "Mobile unit" means a vehicle or trailer designed to provide facilities for
70.24educational programs and services, including diagnostic testing, guidance and counseling
70.25services, and health services. A mobile unit located off nonpublic school premises is a
70.26neutral site as defined in section 123B.41, subdivision 13.
70.27EFFECTIVE DATE.This section is effective for revenue for fiscal year 2008.

70.28    Sec. 2. Minnesota Statutes 2006, section 124D.454, subdivision 2, is amended to read:
70.29    Subd. 2. Definitions. For the purposes of this section, the definitions in this
70.30subdivision apply.
70.31    (a) "Base year" means the second fiscal year preceding the fiscal year for which
70.32aid will be paid.
70.33    (b) "Basic revenue" has the meaning given it in section 126C.10, subdivision 2.
70.34For the purposes of computing basic revenue pursuant to this section, each child with a
70.35disability shall be counted as prescribed in section 126C.05, subdivision 1.
71.1    (c) "Average daily membership" has the meaning given it in section 126C.05.
71.2    (d) "Program growth factor" means 1.00 for fiscal year 1998 and later.
71.3    (e) "Aid percentage factor" means 100 percent for fiscal year 2000 and later.
71.4    (f) (b) "Essential personnel" means a licensed teacher, licensed support services
71.5staff person, paraprofessional providing direct services to students, or licensed personnel
71.6under subdivision 12. This definition is not intended to change or modify the definition of
71.7essential employee in chapter 179A.
71.8EFFECTIVE DATE.This section is effective for revenue for fiscal year 2008.

71.9    Sec. 3. Minnesota Statutes 2006, section 124D.454, subdivision 3, is amended to read:
71.10    Subd. 3. Base revenue Initial aid. (a) The transition-disabled program base revenue
71.11initial aid equals the sum of the following amounts computed using base current year data:
71.12    (1) 68 percent of the salary of each essential licensed person or approved
71.13paraprofessional who provides direct instructional services to students employed during
71.14that fiscal year for services rendered in that district's transition program for children with a
71.15disability;
71.16    (2) 47 percent of the costs of necessary equipment for transition programs for
71.17children with a disability;
71.18    (3) 47 percent of the costs of necessary travel between instructional sites by transition
71.19program teachers of children with a disability but not including travel to and from local,
71.20regional, district, state, or national career and technical student organization meetings;
71.21    (4) 47 percent of the costs of necessary supplies for transition programs for children
71.22with a disability but not to exceed an average of $47 in any one school year for each child
71.23with a disability receiving these services;
71.24    (5) for transition programs for children with disabilities provided by a contract
71.25approved by the commissioner with public, private, or voluntary agencies other than a
71.26Minnesota school district or cooperative center, in place of programs provided by the
71.27district, 52 percent of the difference between the amount of the contract and the basic
71.28revenue of the district for that pupil for the fraction of the school day the pupil receives
71.29services under the contract;
71.30    (6) for transition programs for children with disabilities provided by a contract
71.31approved by the commissioner with public, private, or voluntary agencies other than a
71.32Minnesota school district or cooperative center, that are supplementary to a full educational
71.33program provided by the school district, 52 percent of the amount of the contract; and
71.34    (7) for a contract approved by the commissioner with another Minnesota school
71.35district or cooperative center for vocational evaluation services for children with a
72.1disability for children that are not yet enrolled in grade 12, 52 percent of the amount
72.2of the contract.
72.3    (b) If requested by a school district for transition programs during the base year for
72.4less than the full school year, the commissioner may adjust the base revenue to reflect
72.5the expenditures that would have occurred during the base year had the program been
72.6operated for the full year.
72.7EFFECTIVE DATE.This section is effective for revenue for fiscal year 2008.

72.8    Sec. 4. Minnesota Statutes 2006, section 125A.11, subdivision 1, is amended to read:
72.9    Subdivision 1. Nonresident tuition rate; other costs. (a) For fiscal year 2006,
72.10when a school district provides instruction and services outside the district of residence,
72.11board and lodging, and any tuition to be paid, shall be paid by the district of residence.
72.12The tuition rate to be charged for any child with a disability, excluding a pupil for whom
72.13tuition is calculated according to section 127A.47, subdivision 7, paragraph (d), must be
72.14the sum of (1) the actual cost of providing special instruction and services to the child
72.15including a proportionate amount for special transportation and unreimbursed building
72.16lease and debt service costs for facilities used primarily for special education, plus (2)
72.17the amount of general education revenue and referendum aid attributable to the pupil,
72.18minus (3) the amount of special education aid for children with a disability received
72.19on behalf of that child, minus (4) if the pupil receives special instruction and services
72.20outside the regular classroom for more than 60 percent of the school day, the amount of
72.21general education revenue and referendum aid, excluding portions attributable to district
72.22and school administration, district support services, operations and maintenance, capital
72.23expenditures, and pupil transportation, attributable to that pupil for the portion of time
72.24the pupil receives special instruction and services outside of the regular classroom. If
72.25the boards involved do not agree upon the tuition rate, either board may apply to the
72.26commissioner to fix the rate. Notwithstanding chapter 14, the commissioner must then set
72.27a date for a hearing or request a written statement from each board, giving each board
72.28at least ten days' notice, and after the hearing or review of the written statements the
72.29commissioner must make an order fixing the tuition rate, which is binding on both school
72.30districts. General education revenue and referendum equalization aid attributable to a
72.31pupil must be calculated using the resident district's average general education revenue
72.32and referendum revenue equalization aid per adjusted pupil unit.
72.33    (b) For fiscal year 2007 and later, when a school district provides special instruction
72.34and services for a pupil with a disability as defined in section 125A.02 outside the district
72.35of residence, excluding a pupil for whom an adjustment to special education aid is
73.1calculated according to section 127A.47, subdivision 7, paragraph (e), special education
73.2aid paid to the resident district must be reduced by an amount equal to (1) the actual
73.3cost of providing special instruction and services to the pupil, including a proportionate
73.4amount for special transportation and unreimbursed building lease and debt service costs
73.5for facilities used primarily for special education, plus (2) the amount of general education
73.6revenue and referendum equalization aid attributable to that pupil, calculated using the
73.7resident district's average general education revenue and referendum equalization aid
73.8per adjusted pupil unit excluding basic skills revenue, elementary sparsity revenue and
73.9secondary sparsity revenue, minus (3) the amount of special education aid for children
73.10with a disability received on behalf of that child, minus (4) if the pupil receives special
73.11instruction and services outside the regular classroom for more than 60 percent of the
73.12school day, the amount of general education revenue and referendum equalization aid,
73.13excluding portions attributable to district and school administration, district support
73.14services, operations and maintenance, capital expenditures, and pupil transportation,
73.15attributable to that pupil for the portion of time the pupil receives special instruction and
73.16services outside of the regular classroom., general education revenue and referendum aid
73.17attributable to a pupil must be calculated using the resident district's average general
73.18education revenue and referendum equalization aid per adjusted pupil unit excluding
73.19basic skills revenue, elementary sparsity revenue and secondary sparsity revenue and the
73.20serving district's basic skills revenue, elementary sparsity revenue and secondary sparsity
73.21revenue per adjusted pupil unit. Notwithstanding clauses (1) and (4), for pupils served by
73.22a cooperative unit without a fiscal agent school district, the general education revenue and
73.23referendum equalization aid attributable to a pupil must be calculated using the resident
73.24district's average general education revenue and referendum equalization aid excluding
73.25elementary sparsity revenue and secondary sparsity revenue. Special education aid paid to
73.26the district or cooperative providing special instruction and services for the pupil must be
73.27increased by the amount of the reduction in the aid paid to the resident district. Amounts
73.28paid to cooperatives under this subdivision and section 127A.47, subdivision 7, shall be
73.29recognized and reported as revenues and expenditures on the resident school district's
73.30books of account under sections 123B.75 and 123B.76. If the resident district's special
73.31education aid is insufficient to make the full adjustment, the remaining adjustment shall be
73.32made to other state aid due to the district.
73.33    (c) Notwithstanding paragraphs (a) and (b) and section 127A.47, subdivision 7,
73.34paragraphs (d) and (e), a charter school where more than 30 percent of enrolled students
73.35receive special education and related services, a site approved under section 125A.515,
73.36an intermediate district, a special education cooperative, or a school district that served
74.1as the applicant agency for a group of school districts for federal special education aids
74.2for fiscal year 2006 may apply to the commissioner for authority to charge the resident
74.3district an additional amount to recover any remaining unreimbursed costs of serving
74.4pupils with a disability. The application must include a description of the costs and the
74.5calculations used to determine the unreimbursed portion to be charged to the resident
74.6district. Amounts approved by the commissioner under this paragraph must be included
74.7in the tuition billings or aid adjustments under paragraph (a) or (b), or section 127A.47,
74.8subdivision 7
, paragraph (d) or (e), as applicable.
74.9    (d) For purposes of this subdivision and section 127A.47, subdivision 7, paragraphs
74.10(d) and (e), "general education revenue and referendum equalization aid" means the sum
74.11of the general education revenue according to section 126C.10, subdivision 1, excluding
74.12alternative teacher compensation revenue, plus the referendum equalization aid according
74.13to section 126C.17, subdivision 7, as adjusted according to section 127A.47, subdivision
74.147, paragraphs (a) to (c).
74.15EFFECTIVE DATE.This section is effective the day following final enactment.

74.16    Sec. 5. Minnesota Statutes 2006, section 125A.13, is amended to read:
74.17125A.13 SCHOOL OF PARENTS' CHOICE.
74.18    (a) Nothing in this chapter must be construed as preventing parents of a child with a
74.19disability from sending the child to a school of their choice, if they so elect, subject to
74.20admission standards and policies adopted according to sections 125A.62 to 125A.64 and
74.21125A.66 to 125A.73, and all other provisions of chapters 120A to 129C.
74.22    (b) The parent of a student with a disability not yet enrolled in kindergarten and not
74.23open enrolled in a nonresident district may request that the resident district enter into a
74.24tuition agreement with the nonresident district if:
74.25    (1) the child is enrolled in a Head Start program or a licensed child care setting in
74.26the nonresident district; and
74.27    (2) the child can be served in the same setting as other children in the nonresident
74.28district with the same level of disability.

74.29    Sec. 6. Minnesota Statutes 2006, section 125A.14, is amended to read:
74.30125A.14 SUMMER PROGRAMS EXTENDED SCHOOL YEAR.
74.31    A district may provide summer programs extended school year services for children
74.32with a disability living within the district and nonresident children temporarily placed in
74.33the district pursuant to section 125A.15 or 125A.16. Prior to March 31 or 30 days after the
75.1child with a disability is placed in the district, whichever is later, the providing district
75.2shall give notice to the district of residence of any nonresident children temporarily placed
75.3in the district pursuant to section 125A.15 or 125A.16, of its intention to provide these
75.4programs. Notwithstanding any contrary provisions in sections 125A.15 and 125A.16, the
75.5district providing the special instruction and services must apply for special education
75.6aid for the summer program extended school year services. The unreimbursed actual cost
75.7of providing the program for nonresident children with a disability, including the cost of
75.8board and lodging, may be billed to the district of the child's residence and must be paid
75.9by the resident district. Transportation costs must be paid by the district responsible
75.10for providing transportation pursuant to section 125A.15 or 125A.16 and transportation
75.11aid must be paid to that district.

75.12    Sec. 7. Minnesota Statutes 2006, section 125A.63, is amended by adding a subdivision
75.13to read:
75.14    Subd. 5. Statewide hearing loss early education intervention coordinator. (a)
75.15The coordinator shall:
75.16    (1) collaborate with the early hearing detection and intervention coordinator for the
75.17Department of Health, the director of the Department of Education Resource Center for
75.18Deaf and Hard-of-Hearing, and the Department of Health Early Hearing Detection and
75.19Intervention Advisory Council;
75.20    (2) coordinate and support Department of Education early hearing detection and
75.21intervention teams;
75.22    (3) leverage resources by serving as a liaison between interagency early intervention
75.23committees; part C coordinators from the Departments of Education, Health, and
75.24Human Services; Department of Education regional low-incidence facilitators; service
75.25coordinators from school districts; Minnesota children with special health needs in the
75.26Department of Health; public health nurses; child find; Department of Human Services
75.27Deaf and Hard-of-Hearing Services Division; and others as appropriate;
75.28    (4) identify, support, and promote culturally appropriate and evidence-based early
75.29intervention practices for infants with hearing loss, and provide training, outreach, and use
75.30of technology to increase consistency in statewide service provision;
75.31    (5) identify culturally appropriate specialized reliable and valid instruments to assess
75.32and track the progress of children with hearing loss and promote their use;
75.33    (6) ensure that early childhood providers, parents, and members of the individual
75.34family service and intervention plan are provided with child progress data resulting from
75.35specialized assessments;
76.1    (7) educate early childhood providers and teachers of the deaf and hard-of-hearing
76.2to use developmental data from specialized assessments to plan and adjust individual
76.3family service plans; and
76.4    (8) make recommendations that would improve educational outcomes to the early
76.5hearing detection and intervention committee, the commissioners of education and health,
76.6the Minnesota Commission Serving Deaf and Hard-of-Hearing People, and the advisory
76.7council of the Minnesota Department of Education Resource Center for the Deaf and
76.8Hard-of-Hearing.
76.9    (b) The Department of Education must provide aggregate data regarding outcomes
76.10of deaf and hard-of-hearing children who receive early intervention services within the
76.11state in accordance with the state performance plan.

76.12    Sec. 8. Minnesota Statutes 2006, section 125A.75, subdivision 1, is amended to read:
76.13    Subdivision 1. Travel aid. The state must pay each district one-half of the sum
76.14actually expended by a district, based on mileage, for necessary travel of essential
76.15personnel providing home-based or community-based services to children with a disability
76.16under age five and their families.

76.17    Sec. 9. Minnesota Statutes 2006, section 125A.75, subdivision 4, is amended to read:
76.18    Subd. 4. Program and aid approval. Before June 1 of each year, each district
76.19providing special instruction and services to children with a disability, including children
76.20eligible for Part C, as defined in section 125A.02, subdivision 1, and section 125A.27,
76.21subdivision 8, must submit to the commissioner an application for approval of these
76.22programs and their budgets for the next fiscal year. The application must include an
76.23enumeration of the costs proposed as eligible for state aid pursuant to this section and of
76.24the estimated number and grade level of children with a disability in the district who will
76.25receive special instruction and services during the regular school year and in summer
76.26school programs during the next fiscal year. The application must also include any
76.27other information deemed necessary by the commissioner for the calculation of state aid
76.28and for the evaluation of the necessity of the program, the necessity of the personnel
76.29to be employed in the program, for determining the amount which the program will
76.30receive from grants from federal funds, or special grants from other state sources, and
76.31the program's compliance with the rules and standards of the Department of Education.
76.32The commissioner shall review each application to determine whether the program and
76.33the personnel to be employed in the program are actually necessary and essential to meet
76.34the district's obligation to provide special instruction and services to children with a
77.1disability pursuant to sections 125A.03 to 125A.24, 125A.259 to 125A.48, and 125A.65.
77.2The commissioner shall not approve aid pursuant to this section for any program or for
77.3the salary of any personnel determined to be unnecessary or unessential on the basis of
77.4this review. The commissioner may withhold all or any portion of the aid for programs
77.5which receive grants from federal funds, or special grants from other state sources. By
77.6August 31 the commissioner shall approve, disapprove, or modify each application, and
77.7notify each applying district of the action and of the estimated amount of aid for the
77.8programs. The commissioner shall provide procedures for districts to submit additional
77.9applications for program and budget approval during the fiscal year, for programs needed
77.10to meet any substantial changes in the needs of children with a disability in the district.
77.11Notwithstanding the provisions of section 127A.42, the commissioner may modify or
77.12withdraw the program or aid approval and withhold aid pursuant to this section without
77.13proceeding according to section 127A.42 at any time the commissioner determines that
77.14the program does not comply with rules of the Department of Education or that any facts
77.15concerning the program or its budget differ from the facts in the district's approved
77.16application.
77.17EFFECTIVE DATE.This section is effective for revenue for fiscal year 2008.

77.18    Sec. 10. Minnesota Statutes 2006, section 125A.75, is amended by adding a
77.19subdivision to read:
77.20    Subd. 9. Litigation costs; annual report. (a) By November 30 of each year,
77.21a school district must annually report the district's special education litigation costs,
77.22including attorney fees and costs of due process hearings, to the commissioner of
77.23education, consistent with the Uniform Financial Accounting and Reporting Standards.
77.24    (b) By January 15 of each year, the commissioner shall report school district special
77.25education litigation costs to the house of representatives and the senate committees having
77.26jurisdiction over kindergarten through grade 12 education finance.

77.27    Sec. 11. Minnesota Statutes 2006, section 125A.76, subdivision 1, is amended to read:
77.28    Subdivision 1. Definitions. For the purposes of this section, the definitions in this
77.29subdivision apply.
77.30    (a) "Base year" for fiscal year 1998 and later fiscal years means the second fiscal
77.31year preceding the fiscal year for which aid will be paid.
77.32    (b) "Basic revenue" has the meaning given it in section 126C.10, subdivision 2.
77.33For the purposes of computing basic revenue pursuant to this section, each child with a
77.34disability shall be counted as prescribed in section 126C.05, subdivision 1.
78.1    (c) (b) "Essential personnel" means teachers, cultural liaisons, related services, and
78.2support services staff providing direct services to students. Essential personnel may also
78.3include special education paraprofessionals or clericals providing support to teachers and
78.4students by preparing paperwork and making arrangements related to special education
78.5compliance requirements, including parent meetings and individual education plans.
78.6    (d) (c) "Average daily membership" has the meaning given it in section 126C.05.
78.7    (e) (d) "Program growth factor" means 1.046 for fiscal year 2003, and 1.0 for fiscal
78.8year 2004 2012 and later.
78.9EFFECTIVE DATE.This section is effective for revenue for fiscal year 2008.

78.10    Sec. 12. Minnesota Statutes 2006, section 125A.76, subdivision 2, is amended to read:
78.11    Subd. 2. Special education base revenue initial aid. (a) The special education
78.12base revenue initial aid equals the sum of the following amounts computed using base
78.13current year data:
78.14    (1) 68 percent of the salary of each essential person employed in the district's
78.15program for children with a disability during the fiscal year, whether the person is
78.16employed by one or more districts or a Minnesota correctional facility operating on a
78.17fee-for-service basis;
78.18    (2) for the Minnesota State Academy for the Deaf or the Minnesota State Academy
78.19for the Blind, 68 percent of the salary of each instructional aide assigned to a child
78.20attending the academy, if that aide is required by the child's individual education plan;
78.21    (3) for special instruction and services provided to any pupil by contracting with
78.22public, private, or voluntary agencies other than school districts, in place of special
78.23instruction and services provided by the district, 52 percent of the difference between
78.24the amount of the contract and the amount of the basic revenue, as defined in section
78.25126C.10, subdivision 2, special education aid, and any other aid earned on behalf of
78.26the child the general education revenue, excluding basic skills revenue and alternative
78.27teacher compensation revenue, and referendum equalization aid attributable to a pupil,
78.28calculated using the resident district's average general education revenue and referendum
78.29equalization aid per adjusted pupil unit for the fraction of the school day the pupil receives
78.30services under the contract. This includes children who are residents of the state, receive
78.31services under this subdivision and subdivision 1, and are placed in a care and treatment
78.32facility by court action in a state that does not have a reciprocity agreement with the
78.33commissioner under section 125A.155 as provided for in section 125A.79, subdivision 8;
78.34    (4) for special instruction and services provided to any pupil by contracting for
78.35services with public, private, or voluntary agencies other than school districts, that are
79.1supplementary to a full educational program provided by the school district, 52 percent of
79.2the amount of the contract for that pupil;
79.3    (5) for supplies and equipment purchased or rented for use in the instruction of
79.4children with a disability, an amount equal to 47 percent of the sum actually expended by
79.5the district, or a Minnesota correctional facility operating on a fee-for-service basis, but
79.6not to exceed an average of $47 in any one school year for each child with a disability
79.7receiving instruction;
79.8    (6) for fiscal years 1997 and later, special education base revenue shall include
79.9amounts under clauses (1) to (5) for special education summer programs provided during
79.10the base year for that fiscal year; and
79.11    (7) for fiscal years 1999 and later, the cost of providing transportation services for
79.12children with disabilities under section 123B.92, subdivision 1, paragraph (b), clause
79.13(4); and
79.14    (8) the district's transition-disabled program initial aid according to section
79.15124D.454, subdivision 3.
79.16    The department shall establish procedures through the uniform financial accounting
79.17and reporting system to identify and track all revenues generated from third-party billings
79.18as special education revenue at the school district level; include revenue generated from
79.19third-party billings as special education revenue in the annual cross-subsidy report; and
79.20exclude third-party revenue from calculation of excess cost aid to the districts.
79.21    (b) If requested by a school district operating a special education program during
79.22the base year for less than the full fiscal year, or a school district in which is located a
79.23Minnesota correctional facility operating on a fee-for-service basis for less than the full
79.24fiscal year, the commissioner may adjust the base revenue to reflect the expenditures
79.25that would have occurred during the base year had the program been operated for the
79.26full fiscal year.
79.27    (c) Notwithstanding paragraphs (a) and (b), the portion of a school district's base
79.28revenue attributable to a Minnesota correctional facility operating on a fee-for-service
79.29basis during the facility's first year of operating on a fee-for-service basis shall be
79.30computed using current year data.
79.31EFFECTIVE DATE.This section is effective for revenue for fiscal year 2008.

79.32    Sec. 13. Minnesota Statutes 2006, section 125A.76, subdivision 4, is amended to read:
79.33    Subd. 4. State total special education aid. The state total special education aid
79.34for fiscal year 2004 equals $530,642,000. The state total special education aid for fiscal
79.35year 2005 equals $529,164,000 $529,247,000 for fiscal year 2007, $709,698,000 for
80.1fiscal year 2008, $742,334,000 for fiscal year 2009, $778,780,000 for fiscal year 2010,
80.2and $817,167,000 for fiscal year 2011. The state total special education aid for later
80.3fiscal years equals:
80.4    (1) the state total special education aid for the preceding fiscal year; times
80.5    (2) the program growth factor; times
80.6    (3) the greater of one, or the ratio of the state total average daily membership for the
80.7current fiscal year to the state total average daily membership for the preceding fiscal year.
80.8EFFECTIVE DATE.This section is effective for revenue for fiscal year 2008.

80.9    Sec. 14. Minnesota Statutes 2006, section 125A.76, subdivision 5, is amended to read:
80.10    Subd. 5. School district special education aid. (a) A school district's special
80.11education aid for fiscal year 2000 2008 and later equals the state total special education
80.12aid, minus the amount determined under paragraphs (b) and (c), times the ratio of the
80.13district's adjusted initial special education base revenue aid to the state total adjusted
80.14initial special education base revenue aid. If the commissioner of education modifies
80.15its rules for special education in a manner that increases a district's special education
80.16obligations or service requirements, the commissioner shall annually increase each
80.17district's special education aid by the amount necessary to compensate for the increased
80.18service requirements. The additional aid equals the cost in the current year attributable to
80.19rule changes not reflected in the computation of special education base revenue, multiplied
80.20by the appropriate percentages from subdivision 2.
80.21    (b) Notwithstanding paragraph (a), if the special education base revenue for a
80.22district equals zero, the special education aid equals the amount computed according
80.23to subdivision 2 using current year data.
80.24    (c) Notwithstanding paragraphs (a) and (b), if the special education base revenue for
80.25a district is greater than zero, and the base year amount for the district under subdivision
80.262, paragraph (a), clause (7), equals zero, the special education aid equals the sum of the
80.27amount computed according to paragraph (a), plus the amount computed according to
80.28subdivision 2, paragraph (a), clause (7), using current year data.
80.29    (d) A charter school under section 124D.10 shall generate state special education
80.30aid based on current year expenditures for its first four years of operation and only in its
80.31fifth and later years shall paragraphs (a), (b), and (c) apply.
80.32EFFECTIVE DATE.This section is effective for revenue for fiscal year 2008.

81.1    Sec. 15. Minnesota Statutes 2006, section 125A.76, is amended by adding a
81.2subdivision to read:
81.3    Subd. 8. Special education forecast maintenance of effort. (a) If, on the basis of
81.4a forecast of general fund revenues and expenditures under section 16A.103, the state's
81.5expenditures for special education and related services for children with disabilities
81.6from nonfederal sources for a fiscal year, including special education aid under section
81.7125A.76; special education excess cost aid under section 125A.76, subdivision 7; travel
81.8for home-based services under section 125A.75, subdivision 1; aid for students with
81.9disabilities under section 125A.75, subdivision 3; court-placed special education under
81.10section 125A.79, subdivision 4; out-of-state tuition under section 125A.79, subdivision 8;
81.11and direct expenditures by state agencies are projected to be less than the amount required
81.12to meet federal special education maintenance of effort, the additional amount required
81.13to meet federal special education maintenance of effort is added to the state total special
81.14education aid in section 125A.76, subdivision 4.
81.15    (b) If, on the basis of a forecast of general fund revenues and expenditures under
81.16section 16A.103, expenditures in the programs in paragraph (a) are projected to be greater
81.17than previously forecast for an enacted budget, and an addition to state total special
81.18education aid has been made under paragraph (a), the state total special education aid
81.19must be reduced by the lesser of the amount of the expenditure increase or the amount
81.20previously added to state total special education aid in section 125A.76, subdivision 4.
81.21    (c) For the purpose of this section, "previously forecast for an enacted budget" means
81.22the allocation of funding for these programs in the most recent forecast of general fund
81.23revenues and expenditures or the act appropriating money for these programs, whichever
81.24occurred most recently. It does not include planning estimates for a future biennium.
81.25    (d) If the amount of special education aid is adjusted in accordance with this
81.26subdivision, the commissioner of education shall notify the chairs of the legislative
81.27committees having jurisdiction over kindergarten through grade 12 education regarding
81.28the amount of the adjustment and provide an explanation of the federal maintenance of
81.29effort requirements.
81.30EFFECTIVE DATE.This section is effective for fiscal year 2008.

81.31    Sec. 16. Minnesota Statutes 2006, section 125A.78, is amended to read:
81.32125A.78 ALTERNATIVE DELIVERY BASE REVENUE INITIAL AID
81.33ADJUSTMENT.
82.1    Subdivision 1. Eligibility. A district is eligible for an alternative delivery base
82.2revenue initial aid adjustment if the commissioner has approved the application of the
82.3district according to section 125A.50.
82.4    Subd. 2. Base revenue Initial aid adjustment. For the third fiscal year after
82.5approval of a district's application, and thereafter, the special education base revenue initial
82.6aid under section 125A.76, subdivision 1, must be computed based on activities defined as
82.7reimbursable under Department of Education rules for special education and nonspecial
82.8education students, and additional activities as detailed and approved by the commissioner.
82.9    Subd. 3. Use of revenue. Revenue under section 125A.76 shall be used to
82.10implement the approved program.

82.11    Sec. 17. Minnesota Statutes 2006, section 125A.79, subdivision 1, is amended to read:
82.12    Subdivision 1. Definitions. For the purposes of this section, the definitions in this
82.13subdivision apply.
82.14    (a) "Unreimbursed special education cost" means the sum of the following:
82.15    (1) expenditures for teachers' salaries, contracted services, supplies, equipment, and
82.16transportation services eligible for revenue under section 125A.76; plus
82.17    (2) expenditures for tuition bills received under sections 125A.03 to 125A.24 and
82.18125A.65 for services eligible for revenue under section 125A.76, subdivision 2; minus
82.19    (3) revenue for teachers' salaries, contracted services, supplies, and equipment, and
82.20transportation services under section 125A.76; minus
82.21    (4) tuition receipts under sections 125A.03 to 125A.24 and 125A.65 for services
82.22eligible for revenue under section 125A.76, subdivision 2.
82.23    (b) "General revenue" means the sum of the general education revenue according to
82.24section 126C.10, subdivision 1, excluding alternative teacher compensation revenue, plus
82.25the total qualifying referendum revenue specified in paragraph (e) minus transportation
82.26sparsity revenue minus total operating capital revenue.
82.27    (c) "Average daily membership" has the meaning given it in section 126C.05.
82.28    (d) "Program growth factor" means 1.02 for fiscal year 2003, and 1.0 for fiscal
82.29year 2004 2012 and later.
82.30    (e) "Total qualifying referendum revenue" means two-thirds of the district's total
82.31referendum revenue as adjusted according to section 127A.47, subdivision 7, paragraphs
82.32(a) to (c), for fiscal year 2006, one-third of the district's total referendum revenue for fiscal
82.33year 2007, and none of the district's total referendum revenue for fiscal year 2008 and later.

82.34    Sec. 18. Minnesota Statutes 2006, section 125A.79, subdivision 5, is amended to read:
83.1    Subd. 5. Initial excess cost aid. For fiscal years 2002 2008 and later, a district's
83.2initial excess cost aid equals the greatest greater of:
83.3    (1) 75 percent of the difference between (i) the district's unreimbursed special
83.4education cost and (ii) 4.36 percent of the district's general revenue; or
83.5    (2) 70 percent of the difference between (i) the increase in the district's unreimbursed
83.6special education cost between the base year as defined in section 125A.76, subdivision 1,
83.7and the current year and (ii) 1.6 percent of the district's general revenue; or
83.8    (3) zero.

83.9    Sec. 19. Minnesota Statutes 2006, section 125A.79, subdivision 6, is amended to read:
83.10    Subd. 6. State total special education excess cost aid. The state total special
83.11education excess cost aid for fiscal year 2005 equals $91,811,000 $104,700,000 for
83.12fiscal year 2007, $122,586,000 for fiscal year 2008, $125,302,000 for fiscal year 2009,
83.13$125,477,000 for fiscal year 2010, and $125,858,000 for fiscal year 2011. The state
83.14total special education excess cost aid equals $103,600,000 for fiscal year 2006 and
83.15$104,700,000 for fiscal year 2007. The state total special education excess cost aid for
83.16fiscal year 2008 and later fiscal years equals:
83.17    (1) the state total special education excess cost aid for the preceding fiscal year; times
83.18    (2) the program growth factor; times
83.19    (3) the greater of one, or the ratio of the state total average daily membership for the
83.20current fiscal year to the state total average daily membership for the preceding fiscal year.
83.21EFFECTIVE DATE.This section is effective for revenue for fiscal year 2008.

83.22    Sec. 20. Minnesota Statutes 2006, section 125A.79, subdivision 8, is amended to read:
83.23    Subd. 8. Out-of-state tuition. For children who are residents of the state, receive
83.24services under section 125A.76, subdivisions 1 and 2, and are placed in a care and
83.25treatment facility by court action in a state that does not have a reciprocity agreement
83.26with the commissioner under section 125A.155, the resident school district shall submit
83.27the balance of the tuition bills, minus the amount of the basic revenue, as defined by
83.28section 126C.10, subdivision 2, of the district for the child and the general education
83.29revenue, excluding basic skills revenue and alternative teacher compensation revenue,
83.30and referendum equalization aid attributable to the pupil, calculated using the resident
83.31district's average general education revenue and referendum equalization aid per adjusted
83.32pupil unit minus the special education aid, and any other aid earned on behalf of the child
83.33contracted services initial revenue attributable to the pupil.

84.1    Sec. 21. Minnesota Statutes 2006, section 127A.47, subdivision 7, is amended to read:
84.2    Subd. 7. Alternative attendance programs. The general education aid and special
84.3education aid for districts must be adjusted for each pupil attending a nonresident district
84.4under sections 123A.05 to 123A.08, 124D.03, 124D.06, 124D.08, and 124D.68. The
84.5adjustments must be made according to this subdivision.
84.6    (a) General education aid paid to a resident district must be reduced by an amount
84.7equal to the referendum equalization aid attributable to the pupil in the resident district.
84.8    (b) General education aid paid to a district serving a pupil in programs listed in this
84.9subdivision must be increased by an amount equal to the referendum equalization aid
84.10attributable to the pupil in the nonresident district.
84.11    (c) If the amount of the reduction to be made from the general education aid of the
84.12resident district is greater than the amount of general education aid otherwise due the
84.13district, the excess reduction must be made from other state aids due the district.
84.14    (d) For fiscal year 2006, the district of residence must pay tuition to a district or an
84.15area learning center, operated according to paragraph (f), providing special instruction and
84.16services to a pupil with a disability, as defined in section 125A.02, or a pupil, as defined in
84.17section 125A.51, who is enrolled in a program listed in this subdivision. The tuition must
84.18be equal to (1) the actual cost of providing special instruction and services to the pupil,
84.19including a proportionate amount for special transportation and unreimbursed building
84.20lease and debt service costs for facilities used primarily for special education, minus (2) if
84.21the pupil receives special instruction and services outside the regular classroom for more
84.22than 60 percent of the school day, the amount of general education revenue and referendum
84.23equalization aid attributable to that pupil for the portion of time the pupil receives special
84.24instruction and services outside of the regular classroom, excluding portions attributable to
84.25district and school administration, district support services, operations and maintenance,
84.26capital expenditures, and pupil transportation, minus (3) special education aid attributable
84.27to that pupil, that is received by the district providing special instruction and services.
84.28For purposes of this paragraph, general education revenue and referendum equalization
84.29aid attributable to a pupil must be calculated using the serving district's average general
84.30education revenue and referendum equalization aid per adjusted pupil unit.
84.31    (e) For fiscal year 2007 and later, special education aid paid to a resident district
84.32must be reduced by an amount equal to (1) the actual cost of providing special instruction
84.33and services, including special transportation and unreimbursed building lease and debt
84.34service costs for facilities used primarily for special education, for a pupil with a disability,
84.35as defined in section 125A.02, or a pupil, as defined in section 125A.51, who is enrolled
84.36in a program listed in this subdivision, minus (2) if the pupil receives special instruction
85.1and services outside the regular classroom for more than 60 percent of the school day,
85.2the amount of general education revenue and referendum equalization aid attributable
85.3to that pupil for the portion of time the pupil receives special instruction and services
85.4outside of the regular classroom, excluding portions attributable to district and school
85.5administration, district support services, operations and maintenance, capital expenditures,
85.6and pupil transportation, minus (3) special education aid attributable to that pupil, that is
85.7received by the district providing special instruction and services. For purposes of this
85.8paragraph, general education revenue and referendum equalization aid attributable to a
85.9pupil must be calculated using the serving district's average general education revenue
85.10and referendum equalization aid per adjusted pupil unit. Special education aid paid to the
85.11district or cooperative providing special instruction and services for the pupil, or to the
85.12fiscal agent district for a cooperative, must be increased by the amount of the reduction
85.13in the aid paid to the resident district. If the resident district's special education aid is
85.14insufficient to make the full adjustment, the remaining adjustment shall be made to other
85.15state aids due to the district.
85.16    (f) An area learning center operated by a service cooperative, intermediate district,
85.17education district, or a joint powers cooperative may elect through the action of the
85.18constituent boards to charge the resident district tuition for pupils rather than to have the
85.19general education revenue paid to a fiscal agent school district. Except as provided in
85.20paragraph (d) or (e), the district of residence must pay tuition equal to at least 90 percent
85.21of the district average general education revenue per pupil unit minus an amount equal to
85.22the product of the formula allowance according to section 126C.10, subdivision 2, times
85.23.0485, calculated without basic skills revenue and transportation sparsity revenue, times
85.24the number of pupil units for pupils attending the area learning center, plus the amount of
85.25compensatory revenue generated by pupils attending the area learning center.
85.26EFFECTIVE DATE.This section is effective the day following final enactment.

85.27    Sec. 22. Laws 2006, chapter 263, article 3, section 15, is amended to read:
85.28    Sec. 15. SPECIAL EDUCATION TUITION BILLING FOR FISCAL YEARS
85.292006 AND, 2007, AND 2008.
85.30    (a) Notwithstanding Minnesota Statutes, sections 125A.11, subdivision 1, paragraph
85.31(a), and 127A.47, subdivision 7, paragraph (d), for fiscal year 2006 an intermediate
85.32district, special education cooperative, or school district that served as an applicant
85.33agency for a group of school districts for federal special education aids for fiscal year
85.342006 is not subject to the uniform special education tuition billing calculations, but may
85.35instead continue to bill the resident school districts for the actual unreimbursed costs
86.1of serving pupils with a disability as determined by the intermediate district, special
86.2education cooperative, or school district.
86.3    (b) Notwithstanding Minnesota Statutes, section 125A.11, subdivision 1, paragraph
86.4(c), for fiscal year 2007 only, an applicant district agency exempted from the uniform
86.5special education tuition billing calculations for fiscal year 2006 under paragraph (a)
86.6may apply to the commissioner for a waiver an exemption from the uniform special
86.7education tuition calculations and aid adjustments under Minnesota Statutes, sections
86.8125A.11, subdivision 1 , paragraph (b), and 127A.47, subdivision 7, paragraph (e). The
86.9commissioner must grant the waiver exemption within 30 days of receiving the following
86.10information from the intermediate district, special education cooperative, or school district:
86.11    (1) a detailed description of the applicant district's methodology for calculating
86.12special education tuition for fiscal years 2006 and 2007, as required by the applicant
86.13district to recover the full cost of serving pupils with a disability;
86.14    (2) sufficient data to determine the total amount of special education tuition actually
86.15charged for each student with a disability, as required by the applicant district to recover
86.16the full cost of serving pupils with a disability in fiscal year 2006; and
86.17    (3) sufficient data to determine the amount that would have been charged for each
86.18student for fiscal year 2006 using the uniform tuition billing methodology according
86.19to Minnesota Statutes, sections 125A.11, subdivision 1, or 127A.47, subdivision 7,
86.20as applicable.
86.21    (c) Notwithstanding Minnesota Statutes, section 125A.11, subdivision 1, paragraph
86.22(c), for fiscal year 2008 only, an agency granted an exemption from the uniform special
86.23education tuition billing calculations and aid adjustments for fiscal year 2007 under
86.24paragraph (b) may apply to the commissioner for a one-year extension of the exemption
86.25granted under paragraph (b). The commissioner must grant the extension within 30 days
86.26of receiving the request.
86.27    (d) Notwithstanding Minnesota Statutes, section 125A.11, subdivision 1, paragraphs
86.28(a) and (b), and section 127A.47, subdivision 7, paragraphs (d) and (e), for fiscal year 2007
86.29only, a school district or charter school not eligible for a waiver under Minnesota Statutes,
86.30section 125A.11, subdivision 1, paragraph (d), may apply to the commissioner for authority
86.31to charge the resident district an additional amount to recover any remaining unreimbursed
86.32costs of serving pupils with a disability. The application must include a description of the
86.33costs and the calculations used to determine the unreimbursed portion to be charged to the
86.34resident district. Amounts approved by the commissioner under this paragraph must be
86.35included in the tuition billings or aid adjustments under paragraph (a) or (b), or Minnesota
86.36Statutes, section 127A.47, subdivision 7, paragraph (d) or (e), as applicable.
87.1EFFECTIVE DATE.This section is effective the day following final enactment.

87.2    Sec. 23. TASK FORCE TO COMPARE FEDERAL AND STATE SPECIAL
87.3EDUCATION REQUIREMENTS.
87.4    Subdivision 1. Establishment; duties. A task force is established to recommend
87.5which state laws and rules that exceed or expand upon minimum federal special education
87.6requirements for providing special education programs and services to eligible students
87.7should be amended to conform with minimum federal requirements. The commissioner
87.8of the Bureau of Mediation Services under Minnesota Statutes, section 179.02, after
87.9consulting with interested stakeholders, shall appoint a ten-member task force composed
87.10of equal numbers of providers, advocates, regulators, consumers of special education
87.11services, lawyers who practice in the field of special education and represent either parents
87.12or school districts, special education teachers, and school officials. The commissioner must
87.13convene the task force by August 1, 2007, which shall meet regularly and shall review the
87.14January 25, 2006, report prepared by the Minnesota Department of Education Office of
87.15Compliance and Assistance and other relevant studies and resources analyzing differences
87.16between federal and state special education requirements. The terms and compensation of
87.17task force members are governed by Minnesota Statutes, section 15.059, subdivision 6.
87.18    Subd. 2. Report. The task force must submit to the education policy and finance
87.19committees of the legislature by February 15, 2008, a report that identifies and clearly
87.20and concisely explains each provision in state law or rule that exceeds or expands upon
87.21a minimum federal requirement contained in law or regulation for providing special
87.22education programs and services to eligible students. The report also must recommend
87.23which state provisions that exceed or expand upon a minimum federal requirement may
87.24be amended to conform with minimum federal requirements. The task force expires
87.25when it submits its report to the legislature.
87.26EFFECTIVE DATE.This section is effective the day following final enactment.

87.27    Sec. 24. APPROPRIATIONS.
87.28    Subdivision 1. Department of Education. The sums indicated in this section are
87.29appropriated from the general fund to the Department of Education for the fiscal years
87.30designated.
87.31    Subd. 2. Special education; regular. For special education aid under Minnesota
87.32Statutes, section 125A.75:
88.1
$
691,653,000
.....
2008
88.2
$
739,070,000
.....
2009
88.3    The 2008 appropriation includes $52,965,000 for 2007 and $638,688,000 for 2008.
88.4    The 2009 appropriation includes $70,965,000 for 2008 and $668,105,000 for 2009.
88.5    Subd. 3. Aid for children with disabilities. For aid under Minnesota Statutes,
88.6section 125A.75, subdivision 3, for children with disabilities placed in residential facilities
88.7within the district boundaries for whom no district of residence can be determined:
88.8
$
1,538,000
.....
2008
88.9
$
1,729,000
.....
2009
88.10    If the appropriation for either year is insufficient, the appropriation for the other
88.11year is available.
88.12    Subd. 4. Travel for home-based services. For aid for teacher travel for home-based
88.13services under Minnesota Statutes, section 125A.75, subdivision 1:
88.14
$
254,000
.....
2008
88.15
$
284,000
.....
2009
88.16    The 2008 appropriation includes $22,000 for 2007 and $232,000 for 2008.
88.17    The 2009 appropriation includes $25,000 for 2008 and $259,000 for 2009.
88.18    Subd. 5. Special education; excess costs. For excess cost aid under Minnesota
88.19Statutes, section 125A.79, subdivision 7:
88.20
$
116,612,000
.....
2008
88.21
$
124,395,000
.....
2009
88.22    The 2008 appropriation includes $34,969,000 for 2007 and $81,643,000 for 2008.
88.23    The 2009 appropriation includes $40,943,000 for 2008 and $83,452,000 for 2009.
88.24    Subd. 6. Transition for disabled students. For aid for transition programs for
88.25children with disabilities under Minnesota Statutes, section 124D.454:
88.26
$
879,000
.....
2008
88.27    The 2008 appropriation includes $879,000 for 2007 and $0 for 2008.
88.28    Subd. 7. Court-placed special education revenue. For reimbursing serving
88.29school districts for unreimbursed eligible expenditures attributable to children placed in
88.30the serving school district by court action under Minnesota Statutes, section 125A.79,
88.31subdivision 4:
88.32
$
72,000
.....
2008
88.33
$
74,000
.....
2009
89.1    Subd. 8. Special education out-of-state tuition. For special education out-of-state
89.2tuition according to Minnesota Statutes, section 125A.79, subdivision 8:
89.3
$
250,000
.....
2008
89.4
$
250,000
.....
2009

89.5    Sec. 25. REPEALER.
89.6(a) Minnesota Statutes 2006, sections 125A.10; and 125A.75, subdivision 6, are
89.7repealed.
89.8(b) Minnesota Statutes 2006, sections 124D.454, subdivisions 4, 5, 6, and 7; and
89.9125A.76, subdivision 3, are repealed effective for revenue for fiscal year 2008.

89.10ARTICLE 4
89.11FACILITIES AND TECHNOLOGY

89.12    Section 1. Minnesota Statutes 2006, section 123A.44, is amended to read:
89.13123A.44 CITATION.
89.14    Sections 123A.441 to 123A.446 may be cited as the "Cooperative Secondary
89.15Facilities Grant Act."
89.16EFFECTIVE DATE.This section is effective the day following final enactment.

89.17    Sec. 2. Minnesota Statutes 2006, section 123A.441, is amended to read:
89.18123A.441 POLICY AND PURPOSE.
89.19    Because of the rates of decline in school-aged population, population shifts and
89.20economic changes that the state has experienced in recent years and anticipates in future
89.21years, and because in some instances local districts have not, and will not be able to
89.22provide the required construction funds through local property taxes, the purpose of the
89.23cooperative secondary facilities grant program is to provide an incentive to encourage
89.24cooperation in making available to all secondary students those educational programs,
89.25services and facilities that are most efficiently and effectively provided by a cooperative
89.26effort of several school districts. The policy and purpose of sections 123A.442 to
89.27123A.446 is to use the credit of the state, to a limited degree, to provide grants to
89.28cooperating groups of districts to improve and expand the educational opportunities and
89.29facilities available to their secondary students.
89.30EFFECTIVE DATE.This section is effective the day following final enactment.

90.1    Sec. 3. Minnesota Statutes 2006, section 123A.442, is amended to read:
90.2123A.442 APPROVAL AUTHORITY; APPLICATION FORMS.
90.3    Subdivision 1. Approval by commissioner. To the extent money is available, the
90.4commissioner may approve projects from applications submitted under section 123A.443.
90.5The grant money must be used only to acquire, construct, remodel or improve the building
90.6or site of a cooperative secondary facility under contracts to be entered into within 15
90.7months after the date on which each grant is awarded.
90.8    Subd. 2. Cooperation and combination. Districts that have not already
90.9consolidated and receive a cooperative secondary facilities grant after May 1, 1991, shall:
90.10    (1) submit a consolidation plan as set forth in under section 123A.36 123A.48 for
90.11approval by the State Board of Education before December 31, 1999, or Department of
90.12Education after December 30, 1999; and
90.13    (2) hold a referendum on the question of combination consolidation no later than
90.14four years after a grant is awarded under subdivision 1.
90.15    The districts are eligible for cooperation and combination consolidation revenue
90.16under section 123A.39, subdivision 3 123A.485.
90.17    Subd. 3. Consolidated districts. A school district that has consolidated with
90.18another school district since July 1, 1980, is eligible for a cooperative facilities grant.
90.19EFFECTIVE DATE.This section is effective the day following final enactment.

90.20    Sec. 4. Minnesota Statutes 2006, section 123A.443, is amended to read:
90.21123A.443 GRANT APPLICATION PROCESS.
90.22    Subdivision 1. Qualification. Any group of districts or a consolidated district
90.23that meets the criteria required under subdivision 2 may apply for an incentive grant for
90.24construction of a new secondary facility or for remodeling and improving an existing
90.25secondary facility. A grant for new construction must not exceed the lesser of $5,000,000
90.26$20,000,000 or 75 percent of the approved construction costs of a cooperative secondary
90.27education facility. A grant for remodeling and improving an existing facility must not
90.28exceed $200,000 the lesser of $10,000,000, or 75 percent of the approved remodeling
90.29costs.
90.30    Subd. 2. Review by commissioner. (a) A group of districts or a consolidated district
90.31that submits an application for a grant must submit a proposal to the commissioner for
90.32review and comment under section 123B.71. The commissioner shall prepare a review
90.33and comment on the proposed facility by July 1 of an odd-numbered year, regardless of
90.34the amount of the capital expenditure required to acquire, construct, remodel or improve
91.1the secondary facility. The commissioner shall not approve an application for an incentive
91.2grant for any secondary facility unless the facility receives a favorable review and
91.3comment under section 123B.71 and the following criteria are met:
91.4    (1) the applicant is a consolidated district or a minimum of two or more districts,
91.5with kindergarten to grade 12 enrollments in each district of no more than 1,200 pupils,
91.6enter that have entered into a joint powers agreement;
91.7    (2) for a group of districts, a joint powers board representing all participating
91.8districts is established under section 471.59 to govern the cooperative secondary facility;
91.9    (3) the planned secondary facility will result in the joint powers district meeting the
91.10requirements of Minnesota Rules, parts 3500.2010 and 3500.2110;
91.11    (4) at least 198 pupils would be served in grades 10 to 12, 264 pupils would be
91.12served in grades 9 to 12, or 396 pupils would be served in grades 7 to 12;
91.13    (5) (3) for a group of districts, no more than one superintendent is employed by the
91.14joint powers board as a result of the cooperative secondary facility agreement;
91.15    (6) (4) a statement of need is submitted, that may include reasons why the current
91.16secondary facilities are inadequate, unsafe or inaccessible to persons with disabilities;
91.17    (7) (5) an educational plan is prepared, that includes input from both community and
91.18professional staff;
91.19    (8) (6) for a group of districts, a combined seniority list for all participating districts
91.20is developed by the joint powers board;
91.21    (9) (7) for a group of districts, an education program is developed that provides for
91.22more learning opportunities and course offerings, including the offering of advanced
91.23placement courses, for students than is currently available in any single member district;
91.24    (10) (8) a plan is developed for providing instruction of any resident students in
91.25other districts when distance to the secondary education facility makes attendance at the
91.26facility unreasonably difficult or impractical; and
91.27    (11) (9) for a secondary facility, the joint powers board established under clause (2)
91.28discusses with technical colleges located in the area how vocational education space in
91.29the cooperative secondary facility could be jointly used for secondary and postsecondary
91.30purposes.
91.31    (b) To the extent possible, the joint powers board is encouraged to provide for
91.32severance pay or for early retirement incentives under section 122A.48, for any teacher
91.33or administrator, as defined under section 122A.40, subdivision 1, who is placed on
91.34unrequested leave as a result of the cooperative secondary facility agreement.
91.35    (c) For the purpose of paragraph (a), clause (8) (6), each district must be considered
91.36to have started school each year on the same date.
92.1    (d) The districts may develop a plan that provides for the location of social service,
92.2health, and other programs serving pupils and community residents within the cooperative
92.3secondary facility. The commissioner shall consider this plan when preparing a review
92.4and comment on the proposed facility.
92.5    (e) The districts must schedule and conduct a meeting on library services. The
92.6school districts, in cooperation with the regional public library system and its appropriate
92.7member libraries, must discuss the possibility of including jointly operated library services
92.8at the cooperative secondary facility.
92.9    (f) The board of a district that has reorganized under section 123A.37 or 123A.48
92.10and that is applying for a grant for remodeling or improving an existing facility may act in
92.11the place of a joint powers board to meet the criteria of this subdivision.
92.12    Subd. 3. Reorganizing districts. A district that is a member of a joint powers
92.13board established under subdivision 2 and that is planning to reorganize under section
92.14123A.45 , 123A.46, or 123A.48 must notify the joint powers board one year in advance of
92.15the effective date of the reorganization. Notwithstanding section 471.59 or any other law
92.16to the contrary, the board of a district that reorganizes under section 123A.45, 123A.46, or
92.17123A.48 may appoint representatives to the joint powers board who will serve on the joint
92.18powers board for two years after the effective date of the reorganization if authorized in
92.19the agreement establishing the joint powers board to govern the cooperative secondary
92.20facility. These representatives shall have the same powers as representatives of any other
92.21school district under the joint powers agreement.
92.22    Subd. 4. District procedures. A joint powers board of a secondary district
92.23established under subdivision 2 or a school board of a reorganized district that intends
92.24to apply for a grant must adopt a resolution stating the proposed costs of the project,
92.25the purpose for which the costs are to be incurred, and an estimate of the dates when
92.26the facilities for which the grant is requested will be contracted for and completed.
92.27Applications for the state grants must be accompanied by (a) a copy of the resolution, (b)
92.28a certificate by the clerk and treasurer of the joint powers board showing the current
92.29outstanding indebtedness of each member district, and (c) a certificate by the county
92.30auditor of each county in which a portion of the joint powers district lies showing the
92.31information in the auditor's official records that is required to be used in computing the
92.32debt limit of the district under section 475.53, subdivision 4. The clerk's and treasurer's
92.33certificate must show, as to each outstanding bond issue of each member district, the
92.34amount originally issued, the purpose for which issued, the date of issue, the amount
92.35remaining unpaid as of the date of the resolution, and the interest rates and due dates
92.36and amounts of principal thereon. Applications and necessary data must be in the
93.1form prescribed by the commissioner and the rules of the State Board of Education
93.2before December 31, 1999, and after December 30, 1999, in the form prescribed by the
93.3commissioner. Applications must be received by the commissioner by September 1 of an
93.4odd-numbered year. When an application is received, the commissioner shall obtain from
93.5the commissioner of revenue, and from the Public Utilities Commission when required,
93.6the information in their official records that is required to be used in computing the debt
93.7limit of the joint powers district under section 475.53, subdivision 4.
93.8    Subd. 5. Award of grants. By November 1 of the odd-numbered year, the
93.9commissioner shall examine and consider all applications for grants, and if any district is
93.10found not qualified, the commissioner shall promptly notify that board.
93.11    A grant award is subject to verification by the district as specified in subdivision
93.128. A grant award for a new facility must not be made until the site of the secondary
93.13facility has been determined. A grant award to remodel or improve an existing facility
93.14must not be made until the districts have reorganized. If the total amount of the approved
93.15applications exceeds the amount that is or can be made available, the commissioner shall
93.16first award grants to districts that will close at least one existing school building, and then,
93.17to the extent funds remain, allot the available amount equally between the any other
93.18approved applicant districts. The commissioner shall promptly certify to each qualified
93.19district the amount, if any, of the grant awarded to it.
93.20    Subd. 6. Collocation grant. A group of districts that receives a grant for a new
93.21facility under subdivision 4 is also eligible to receive an additional grant in the amount of
93.22$1,000,000. To receive the additional grant, the group of districts must develop a plan
93.23under subdivision 2, paragraph (d), that provides for the location of a significant number
93.24of noneducational student and community service programs within the cooperative
93.25secondary facility.
93.26    Subd. 7. Referendum; bond issue. Within 180 days after being awarded a grant
93.27for a new facility under subdivision 5, the joint powers board must submit the question
93.28of authorizing the borrowing of funds for the secondary facility to the voters of the joint
93.29powers district at a special election, which may be held in conjunction with the annual
93.30general election of the school board members of the member districts. The question
93.31submitted must state the total amount of funding needed from all sources. A majority of
93.32those voting in the affirmative on the question is sufficient to authorize the joint powers
93.33board to accept the grant and to issue the bonds on public sale in accordance with
93.34according to chapter 475. The clerk of the joint powers board must certify the vote of
93.35the bond election to the commissioner. If the question is approved by the voters, the
93.36commissioner shall notify the approved applicant districts that the grant amount certified
94.1under subdivision 5 is available and appropriated for payment under this subdivision.
94.2If a majority of those voting on the question do not vote in the affirmative, the grant
94.3must be canceled.
94.4    Subd. 8. Contract. Each grant must be evidenced by a contract between the board
94.5and the state acting through the commissioner. The contract obligates the state to pay to
94.6the board an amount computed according to subdivision 5, and according to a schedule,
94.7and terms and conditions acceptable to the commissioner of finance.
94.8    Subd. 9. Consolidation. A group of districts that operates a cooperative secondary
94.9facility that was acquired, constructed, remodeled, or improved under this section and
94.10implements consolidation proceedings according to section 123A.48, may propose a
94.11temporary school board structure in the petition or resolution required under section
94.12123A.48, subdivision 2 . The districts may propose the number of existing school board
94.13members of each district to become members of the board of the consolidated district
94.14and a method to gradually reduce the membership to six or seven. The proposal must
94.15be approved, disapproved, or modified by the state board of education commissioner.
94.16The election requirements of section 123A.48, subdivision 20, do not apply to a
94.17proposal approved by the state board. Elections conducted after the effective date of the
94.18consolidation are subject to the Minnesota Election Law.
94.19EFFECTIVE DATE.This section is effective the day following final enactment.

94.20    Sec. 5. Minnesota Statutes 2006, section 123B.53, subdivision 1, is amended to read:
94.21    Subdivision 1. Definitions. (a) For purposes of this section, the eligible debt service
94.22revenue of a district is defined as follows:
94.23    (1) the amount needed to produce between five and six percent in excess of the
94.24amount needed to meet when due the principal and interest payments on the obligations
94.25of the district for eligible projects according to subdivision 2, including the amounts
94.26necessary for repayment of energy loans according to section 216C.37 or sections 298.292
94.27to 298.298, debt service loans and capital loans, lease purchase payments under section
94.28126C.40, subdivision 2 , alternative facilities levies under section 123B.59, subdivision
94.295
, paragraph (a), minus
94.30    (2) the amount of debt service excess levy reduction for that school year calculated
94.31according to the procedure established by the commissioner.
94.32    (b) The obligations in this paragraph are excluded from eligible debt service revenue:
94.33    (1) obligations under section 123B.61;
94.34    (2) the part of debt service principal and interest paid from the taconite environmental
94.35protection fund or Douglas J. Johnson economic protection trust;
95.1    (3) obligations issued under Laws 1991, chapter 265, article 5, section 18, as
95.2amended by Laws 1992, chapter 499, article 5, section 24; and
95.3    (4) obligations under section 123B.62.
95.4    (c) For purposes of this section, if a preexisting school district reorganized under
95.5sections 123A.35 to 123A.43, 123A.46, and 123A.48 is solely responsible for retirement
95.6of the preexisting district's bonded indebtedness, capital loans or debt service loans, debt
95.7service equalization aid must be computed separately for each of the preexisting districts.
95.8    (d) For purposes of this section, the adjusted net tax capacity determined according
95.9to section 127A.48 shall be adjusted to include a portion of the tax capacity of property
95.10generally exempted from ad valorem taxes under section 272.02, subdivisions subdivision
95.1164 and 65, equal to the product of that tax capacity times the ratio of the eligible debt
95.12service revenue attributed to general obligation bonds to the total eligible debt service
95.13revenue of the district.

95.14    Sec. 6. Minnesota Statutes 2006, section 123B.54, is amended to read:
95.15123B.54 DEBT SERVICE APPROPRIATION.
95.16    (a) $21,624,000 $14,813,000 in fiscal year 2008 and $20,403,000, $11,124,000 in
95.17fiscal year 2009, $8,866,000 in fiscal year 2010, and $6,631,000 in fiscal year 2011 and
95.18later are appropriated from the general fund to the commissioner of education for payment
95.19of debt service equalization aid under section 123B.53.
95.20    (b) The appropriations in paragraph (a) must be reduced by the amount of any
95.21money specifically appropriated for the same purpose in any year from any state fund.
95.22EFFECTIVE DATE.This section is effective for revenue for fiscal year 2009.

95.23    Sec. 7. Minnesota Statutes 2006, section 123B.57, subdivision 3, is amended to read:
95.24    Subd. 3. Health and safety revenue. A district's health and safety revenue
95.25for a fiscal year equals the district's alternative facilities levy under section 123B.59,
95.26subdivision 5, paragraph (b), plus the greater of zero or:
95.27    (1) the sum of (a) the total approved cost of the district's hazardous substance
95.28plan for fiscal years 1985 through 1989, plus (b) the total approved cost of the district's
95.29health and safety program for fiscal year 1990 through the fiscal year to which the levy
95.30is attributable, excluding expenditures funded with bonds issued under section 123B.59
95.31or 123B.62, or chapter 475; certificates of indebtedness or capital notes under section
95.32123B.61 ; levies under section 123B.58, 123B.59, 123B.63, or 126C.40, subdivision 1 or
95.336; and other federal, state, or local revenues, minus
96.1    (2) the sum of (a) the district's total hazardous substance aid and levy for fiscal years
96.21985 through 1989 under sections 124.245 and 275.125, subdivision 11c, plus (b) the
96.3district's health and safety revenue under this subdivision, for years before the fiscal year
96.4to which the levy is attributable.
96.5EFFECTIVE DATE.This section is effective for revenue for fiscal year 2009.

96.6    Sec. 8. Minnesota Statutes 2006, section 123B.63, subdivision 3, is amended to read:
96.7    Subd. 3. Capital project levy referendum. A district may levy the local tax
96.8rate approved by a majority of the electors voting on the question to provide funds for
96.9an approved project. The election must take place no more than five years before the
96.10estimated date of commencement of the project. The referendum must be held on a date
96.11set by the board. A referendum for a project not receiving a positive review and comment
96.12by the commissioner under section 123B.71 must be approved by at least 60 percent of the
96.13voters at the election. The referendum may be called by the school board and may be held:
96.14    (1) separately, before an election for the issuance of obligations for the project
96.15under chapter 475; or
96.16    (2) in conjunction with an election for the issuance of obligations for the project
96.17under chapter 475; or
96.18    (3) notwithstanding section 475.59, as a conjunctive question authorizing both the
96.19capital project levy and the issuance of obligations for the project under chapter 475. Any
96.20obligations authorized for a project may be issued within five years of the date of the
96.21election.
96.22    The ballot must provide a general description of the proposed project, state the
96.23estimated total cost of the project, state whether the project has received a positive or
96.24negative review and comment from the commissioner, state the maximum amount of the
96.25capital project levy as a percentage of net tax capacity, state the amount that will be raised
96.26by that local tax rate in the first year it is to be levied, and state the maximum number of
96.27years that the levy authorization will apply.
96.28    The ballot must contain a textual portion with the information required in this
96.29section and a question stating substantially the following:
96.30    "Shall the capital project levy proposed by the board of .......... School District
96.31No. .......... be approved?"
96.32    If approved, the amount provided by the approved local tax rate applied to the net
96.33tax capacity for the year preceding the year the levy is certified may be certified for the
96.34number of years, not to exceed ten, approved.
97.1    In the event a conjunctive question proposes to authorize both the capital project
97.2levy and the issuance of obligations for the project, appropriate language authorizing the
97.3issuance of obligations must also be included in the question.
97.4    The district must notify the commissioner of the results of the referendum.
97.5EFFECTIVE DATE.This section is effective July 1, 2007, for elections conducted
97.6on or after that day.

97.7    Sec. 9. Minnesota Statutes 2006, section 128D.11, subdivision 3, is amended to read:
97.8    Subd. 3. No election. Subject to the provisions of subdivisions 7 to 10, the school
97.9district may also by a two-thirds majority vote of all the members of its board of education
97.10and without any election by the voters of the district, issue and sell in each calendar year
97.11general obligation bonds of the district in an amount not to exceed 5-1/10 per cent of the
97.12net tax capacity of the taxable property in the district (plus, for calendar years 1990 to
97.132003, an amount not to exceed $7,500,000, and for calendar years 2004 to 2008 2016 an
97.14amount not to exceed $15,000,000; with an additional provision that any amount of bonds
97.15so authorized for sale in a specific year and not sold can be carried forward and sold in
97.16the year immediately following).
97.17EFFECTIVE DATE.This section is effective the day following final enactment.

97.18    Sec. 10. Minnesota Statutes 2006, section 272.02, subdivision 64, is amended to read:
97.19    Subd. 64. Job opportunity building zone property. (a) Improvements to real
97.20property, and personal property, classified under section 273.13, subdivision 24, and
97.21located within a job opportunity building zone, designated under section 469.314, are
97.22exempt from ad valorem taxes levied under chapter 275.
97.23    (b) Improvements to real property, and tangible personal property, of an agricultural
97.24production facility located within an agricultural processing facility zone, designated
97.25under section 469.314, is exempt from ad valorem taxes levied under chapter 275.
97.26    (c) For property to qualify for exemption under paragraph (a), the occupant must be
97.27a qualified business, as defined in section 469.310.
97.28    (d) The exemption applies beginning for the first assessment year after designation
97.29of the job opportunity building zone by the commissioner of employment and economic
97.30development. The exemption applies to each assessment year that begins during the
97.31duration of the job opportunity building zone. To be exempt, the property must be
97.32occupied by July 1 of the assessment year by a qualified business that has signed the
98.1business subsidy agreement and relocation agreement, if required, by July 1 of the
98.2assessment year. This exemption does not apply to:
98.3    (1) the levy under section 475.61 or similar levy provisions under any other law to
98.4pay general obligation bonds; or
98.5    (2) a levy under section 126C.17, if the levy was approved by the voters before the
98.6designation of the job opportunity building zone other school district levies included in
98.7the debt service levy of the district under section 123B.55.
98.8EFFECTIVE DATE.This section is effective for taxes payable in 2008.

98.9    Sec. 11. SCHOOL TECHNOLOGY AID.
98.10    School technology aid equals $150 times the district's adjusted marginal cost pupil
98.11units for fiscal year 2009. This aid must only be used for the purposes of Minnesota
98.12Statutes, section 126C.10, subdivision 14.
98.13EFFECTIVE DATE.This section is effective the day following final enactment.

98.14    Sec. 12. BONDING AUTHORIZATION.
98.15    To provide funds for the acquisition or betterment of school facilities, Independent
98.16School District No. 625, St. Paul, may by two-thirds majority vote of all the members of
98.17the board of directors issue general obligation bonds in one or more series for calendar
98.18years 2008 through 2016, as provided in this section. The aggregate principal amount of
98.19any bonds issued under this section for each calendar year must not exceed $15,000,000.
98.20Issuance of the bonds is not subject to Minnesota Statutes, section 475.58 or 475.59.
98.21The bonds must otherwise be issued as provided in Minnesota Statutes, chapter 475.
98.22The authority to issue bonds under this section is in addition to any bonding authority
98.23authorized by Minnesota Statutes, chapter 123B, or other law. The amount of bonding
98.24authority authorized under this section must be disregarded in calculating the bonding
98.25limit of Minnesota Statutes, chapter 123B, or any other law other than Minnesota Statutes,
98.26section 475.53, subdivision 4.
98.27EFFECTIVE DATE.This section is effective the day following final enactment.

98.28    Sec. 13. TAX LEVY FOR DEBT SERVICE.
98.29    To pay the principal of and interest on bonds issued under section 2, Independent
98.30School District No. 625, St. Paul, must levy a tax annually in an amount sufficient
98.31under Minnesota Statutes, section 475.61, subdivisions 1 and 3, to pay the principal of
98.32and interest on the bonds. The tax authorized under this section is in addition to the
99.1taxes authorized to be levied under Minnesota Statutes, chapter 123B, 124D, or 126C, or
99.2other law.
99.3EFFECTIVE DATE.This section is effective the day following final enactment.

99.4    Sec. 14. ADMINISTRATIVE LEASE LEVY; SPRING LAKE PARK.
99.5    Notwithstanding the instructional purposes limitation of Minnesota Statutes, section
99.6126C.40, subdivision 1, Independent School District No. 16, Spring Lake Park, may
99.7lease administrative space under Minnesota Statutes, section 126C.40, subdivision 1, if
99.8the district can demonstrate to the satisfaction of the commissioner of education that
99.9the administrative space is less expensive than instruction space that the district would
99.10otherwise lease. A school district may not levy under this section for more than five years.
99.11The commissioner must deny this levy authority unless the district passes a resolution
99.12stating its intent to lease instructional space under Minnesota Statutes, section 126C.40,
99.13subdivision 1, if the commissioner does not grant authority under this section. The
99.14resolution must also certify that a lease of administrative space under this section is less
99.15expensive than the district's proposed instructional lease. Levy authority under this section
99.16shall not exceed the total levy authority under Minnesota Statutes, section 126C.40,
99.17subdivision 1, paragraph (e).
99.18EFFECTIVE DATE.This section is effective beginning with revenue for taxes
99.19payable in 2008.

99.20    Sec. 15. HEALTH AND SAFETY REVENUE; CLEARBROOK-GONVICK.
99.21    Notwithstanding Minnesota Statutes, section 123B.57, Independent School District
99.22No. 2311, Clearbrook-Gonvick, may use health and safety revenue for the demolition of
99.23the Gonvick school building. The district must recognize the revenue under this section
99.24in fiscal year 2008.
99.25EFFECTIVE DATE.This section is effective for taxes payable in 2008.

99.26    Sec. 16. APPROPRIATIONS.
99.27    Subdivision 1. Department of Education. The sums indicated in this section are
99.28appropriated from the general fund to the Department of Education for the fiscal years
99.29designated.
99.30    Subd. 2. Health and safety revenue. For health and safety aid according to
99.31Minnesota Statutes, section 123B.57, subdivision 5:
100.1
$
190,000
.....
2008
100.2
$
179,000
.....
2009
100.3    The 2008 appropriation includes $20,000 for 2007 and $170,000 for 2008.
100.4    The 2009 appropriation includes $18,000 for 2008 and $161,000 for 2009.
100.5    Subd. 3. Debt service equalization. For debt service aid according to Minnesota
100.6Statutes, section 123B.53, subdivision 6:
100.7
$
14,812,000
.....
2008
100.8
$
11,124,000
.....
2009
100.9    The 2008 appropriation includes $1,767,000 for 2007 and $13,045,000 for 2008.
100.10    The 2009 appropriation includes $1,450,000 for 2008 and $9,674,000 for 2009.
100.11    Subd. 4. Alternative facilities bonding aid. For alternative facilities bonding aid,
100.12according to Minnesota Statutes, section 123B.59, subdivision 1:
100.13
$
19,287,000
.....
2008
100.14
$
19,287,000
.....
2009
100.15    The 2008 appropriation includes $1,928,000 for 2007 and $17,359,000 for 2008.
100.16    The 2009 appropriation includes $1,928,000 for 2008 and $17,359,000 for 2009.
100.17    Subd. 5. Equity in telecommunications access. For equity in telecommunications
100.18access:
100.19
$
7,622,000
.....
2008
100.20
$
8,743,000
.....
2009
100.21    If the appropriation amount is insufficient, the commissioner shall reduce the
100.22reimbursement rate in Minnesota Statutes, section 125B.26, subdivisions 4 and 5, and the
100.23revenue for fiscal years 2008 and 2009 shall be prorated.
100.24    Any balance in the first year does not cancel but is available in the second year.
100.25    The base appropriation for fiscal year 2010 and later is $3,750,000.
100.26    Subd. 6. Deferred maintenance aid. For deferred maintenance aid, according to
100.27Minnesota Statutes, section 123B.591, subdivision 4:
100.28
$
3,290,000
.....
2008
100.29
$
2,667,000
.....
2009
100.30    The 2008 appropriation includes $0 for 2007 and $3,290,000 for 2008.
100.31    The 2009 appropriation includes $365,000 for 2008 and $2,302,000 for 2009.
100.32    Subd. 7. Rocori school district. For Rocori, Independent School District No.
100.33750, for Project Serv:
101.1
$
53,000
.....
2008
101.2    Subd. 8. School technology grants. For school technology grants under section 11:
101.3
$
150,000,000
.....
2009
101.4    This is a onetime appropriation.
101.5    Subd. 9. Eden Valley-Watkins; environmental remediation. For a grant to
101.6Independent School District No. 463, Eden Valley-Watkins, to recover the amount actually
101.7spent on environmental remediation efforts related to the cleanup of a mercury spill.
101.8
$
126,000
.....
2008

101.9ARTICLE 5
101.10NUTRITION AND ACCOUNTING

101.11    Section 1. Minnesota Statutes 2006, section 123B.10, subdivision 1, is amended to read:
101.12    Subdivision 1. Budgets; form of notification. (a) Every board must publish revenue
101.13and expenditure budgets for the current year and the actual revenues, expenditures, fund
101.14balances for the prior year and projected fund balances for the current year in a form
101.15prescribed by the commissioner within one week of the acceptance of the final audit by
101.16the board, or November 30, whichever is earlier. The forms prescribed must be designed
101.17so that year to year comparisons of revenue, expenditures and fund balances can be made.
101.18These budgets, reports of revenue, expenditures and fund balances must be published in
101.19a qualified newspaper of general circulation in the district or on the district's official
101.20Web site. If published on the district's official Web site, the district must also publish an
101.21announcement in a qualified newspaper of general circulation in the district that includes
101.22the Internet address where the information has been posted.
101.23    (b) A school board annually must notify the public of its revenue, expenditures, fund
101.24balances, and other relevant budget information. The board must include the budget
101.25information required by this section in the materials provided as a part of its truth in
101.26taxation hearing, post the materials in a conspicuous place on the district's official Web
101.27site, including a link to the district's school report card on the Department of Education's
101.28Web site, and publish the information in a qualified newspaper of general circulation
101.29in the district.

101.30    Sec. 2. Minnesota Statutes 2006, section 123B.77, subdivision 4, is amended to read:
101.31    Subd. 4. Budget approval. Prior to July 1 of each year, the board of each district
101.32must approve and adopt its revenue and expenditure budgets for the next school year.
102.1The budget document so adopted must be considered an expenditure-authorizing or
102.2appropriations document. No funds shall be expended by any board or district for any
102.3purpose in any school year prior to the adoption of the budget document which authorizes
102.4that expenditure, or prior to an amendment to the budget document by the board to
102.5authorize the expenditure. Expenditures of funds in violation of this subdivision shall be
102.6considered unlawful expenditures. Prior to the appropriation of revenue for the next
102.7school year in the initial budget, the board shall inform the principal or other responsible
102.8administrative authority of each site of the amount of general education and referendum
102.9revenue that the Department of Education estimates will be generated by the pupils
102.10in attendance at each site. For purposes of this subdivision, a district may adjust the
102.11department's estimates for school building openings, school building closings, changes
102.12in attendance area boundaries, or other changes in programs or student demographics
102.13not reflected in the department's calculations. A district must report to the department
102.14any adjustments it makes according to this subdivision in the department's estimates
102.15of compensatory revenue generated by the pupils in attendance at each site, and the
102.16department must use the adjusted compensatory revenue estimates in preparing the report
102.17required under section 123B.76, subdivision 3, paragraph (c).

102.18    Sec. 3. Minnesota Statutes 2006, section 123B.79, subdivision 8, is amended to read:
102.19    Subd. 8. Account transfer for reorganizing districts. A district that has
102.20reorganized according to sections 123A.35 to 123A.43, 123A.46, or 123A.48, or has
102.21conducted a successful referendum on the question of combination under section
102.22123A.37, subdivision 2 , or consolidation under section 123A.48, subdivision 15, or has
102.23been assigned an identification number by the commissioner under section 123A.48,
102.24subdivision 16
, may make permanent transfers between any of the funds or accounts in
102.25the newly created or enlarged district with the exception of the debt redemption fund,
102.26food service fund, and health and safety account of the capital expenditure fund. Fund
102.27transfers under this section may be made for up to one year prior to the effective date of
102.28combination or consolidation by the consolidating boards and during the year following
102.29the effective date of reorganization by the consolidated board. The newly formed board of
102.30the combined district may adopt a resolution on or before August 30 of the year of the
102.31reorganization authorizing a transfer among accounts or funds of the previous independent
102.32school districts which transfer or transfers shall be reported in the affected districts'
102.33audited financial statements for the year immediately preceding the consolidation.

103.1    Sec. 4. Minnesota Statutes 2006, section 123B.79, is amended by adding a subdivision
103.2to read:
103.3    Subd. 9. Elimination of reserve accounts. A school board shall eliminate all
103.4reserve accounts established in the school district's general fund under Minnesota Statutes
103.5before July 1, 2006, for which no specific authority remains in statute as of June 30,
103.62007. Any balance in the district's reserved for bus purchases account as of June 30,
103.72007, shall be transferred to the reserved account for operating capital in the school
103.8district's general fund. Any balance in other reserved accounts established in the school
103.9district's general fund under Minnesota Statutes before July 1, 2006, for which no specific
103.10authority remains in statute as of June 30, 2007, shall be transferred to the school district's
103.11unreserved general fund balance. A school board may, upon adoption of a resolution by
103.12the school board, establish a designated account for any program for which a reserved
103.13account has been eliminated.
103.14EFFECTIVE DATE.This section is effective June 30, 2007.

103.15    Sec. 5. Minnesota Statutes 2006, section 124D.111, subdivision 1, is amended to read:
103.16    Subdivision 1. School lunch aid computation. Each school year, the state must pay
103.17participants in the national school lunch program the amount of 10.5 12 cents for each full
103.18paid, reduced, and free student lunch served to students.

103.19    Sec. 6. Minnesota Statutes 2006, section 126C.15, subdivision 2, is amended to read:
103.20    Subd. 2. Building allocation. (a) A district must allocate its compensatory revenue
103.21to each school building in the district where the children who have generated the revenue
103.22are served unless the school district has received permission under section 50 to allocate
103.23compensatory revenue according to student performance measures developed by the
103.24school board.
103.25    (b) Notwithstanding paragraph (a), a district may allocate up to five percent of the
103.26amount of compensatory revenue that the district receives to school sites according to a
103.27plan adopted by the school board.
103.28    (c) For the purposes of this section and section 126C.05, subdivision 3, "building"
103.29means education site as defined in section 123B.04, subdivision 1.
103.30    (d) If the pupil is served at a site other than one owned and operated by the district,
103.31the revenue shall be paid to the district and used for services for pupils who generate the
103.32revenue.
103.33    (e) A district with school building openings, school building closings, changes
103.34in attendance area boundaries, or other changes in programs or student demographics
104.1between the prior year and the current year may reallocate compensatory revenue among
104.2sites to reflect these changes. A district must report to the department any adjustments it
104.3makes according to this paragraph and the department must use the adjusted compensatory
104.4revenue allocations in preparing the report required under section 123B.76, subdivision 3,
104.5paragraph (c).

104.6    Sec. 7. Minnesota Statutes 2006, section 126C.41, is amended by adding a subdivision
104.7to read:
104.8    Subd. 6. Levy authority for unfunded severance and retirement costs. (a) A
104.9school district qualifies for eligibility under this section if the district:
104.10    (1) participated in the cooperative secondary facilities program;
104.11    (2) consolidated with at least two other school districts; and
104.12    (3) has unfunded severance or retirement costs.
104.13    (b) An eligible school district may annually levy up to $150,000 for unfunded
104.14severance or retirement costs. This levy authority expires after taxes payable in 2017.
104.15    (c) A school district that levies under this section must reserve the proceeds of the
104.16levy and spend those amounts only for unfunded severance or retirement costs.
104.17EFFECTIVE DATE.This section is effective for taxes payable in 2008.

104.18    Sec. 8. Minnesota Statutes 2006, section 126C.48, subdivision 2, is amended to read:
104.19    Subd. 2. Notice to commissioner; forms. By October 7 of each year each
104.20district must notify the commissioner of the proposed levies in compliance with the levy
104.21limitations of this chapter and chapters 120B, 122A, 123A, 123B, 124D, 125A, 127A, and
104.22136D. A school district that has reached an agreement with its home county auditor to
104.23extend the date of certification of its proposed levy under section 275.065, subdivision 1,
104.24must submit its notice of proposed levies to the commissioner no later than October 10 of
104.25each year. By January 7 of each year each district must notify the commissioner of the
104.26final levies certified. The commissioner shall prescribe the form of these notifications and
104.27may request any additional information necessary to compute certified levy amounts.

104.28    Sec. 9. Minnesota Statutes 2006, section 275.065, subdivision 1, is amended to read:
104.29    Subdivision 1. Proposed levy. (a) Notwithstanding any law or charter to the
104.30contrary, on or before September 15, each taxing authority, other than a school district,
104.31shall adopt a proposed budget and shall certify to the county auditor the proposed or, in
104.32the case of a town, the final property tax levy for taxes payable in the following year.
105.1    (b) On or before September 30, each school district that has not mutually agreed
105.2with its home county to extend this date shall certify to the county auditor the proposed
105.3property tax levy for taxes payable in the following year. Each school district that has
105.4agreed with its home county to delay the certification of its proposed property tax levy
105.5must certify its proposed property tax levy for the following year no later than October
105.67. The school district shall certify the proposed levy as:
105.7    (1) a specific dollar amount by school district fund, broken down between
105.8voter-approved and non-voter-approved levies and between referendum market value
105.9and tax capacity levies; or
105.10    (2) the maximum levy limitation certified by the commissioner of education
105.11according to section 126C.48, subdivision 1.
105.12    (c) If the board of estimate and taxation or any similar board that establishes
105.13maximum tax levies for taxing jurisdictions within a first class city certifies the maximum
105.14property tax levies for funds under its jurisdiction by charter to the county auditor by
105.15September 15, the city shall be deemed to have certified its levies for those taxing
105.16jurisdictions.
105.17    (d) For purposes of this section, "taxing authority" includes all home rule and
105.18statutory cities, towns, counties, school districts, and special taxing districts as defined
105.19in section 275.066. Intermediate school districts that levy a tax under chapter 124 or
105.20136D, joint powers boards established under sections 123A.44 to 123A.446, and Common
105.21School Districts No. 323, Franconia, and No. 815, Prinsburg, are also special taxing
105.22districts for purposes of this section.

105.23    Sec. 10. Minnesota Statutes 2006, section 275.065, subdivision 1a, is amended to read:
105.24    Subd. 1a. Overlapping jurisdictions. In the case of a taxing authority lying in
105.25two or more counties, the home county auditor shall certify the proposed levy and the
105.26proposed local tax rate to the other county auditor by October 5, unless the home county
105.27has agreed to delay the certification of its proposed property tax levy, in which case the
105.28home county auditor shall certify the proposed levy and the proposed local tax rate to the
105.29other county auditor by October 10. The home county auditor must estimate the levy or
105.30rate in preparing the notices required in subdivision 3, if the other county has not certified
105.31the appropriate information. If requested by the home county auditor, the other county
105.32auditor must furnish an estimate to the home county auditor.

105.33    Sec. 11. PLAINVIEW-ELGIN-MILLVILLE; CONSOLIDATED DISTRICT
105.34FUND BALANCE CALCULATIONS.
106.1    Subdivision 1. Fiscal year 2007 replacement aid. Independent School District
106.2No. 2899, Plainview-Elgin-Millville, is eligible for replacement aid to offset its excess
106.3fund balance penalty for fiscal year 2007.
106.4    Subd. 2. Fiscal years 2008 and 2009. Upon receipt of appropriate documentation
106.5from Independent School District No. 2899, Plainview-Elgin-Millville, the Department of
106.6Education must adjust the district's three-year adjusted average fund balances required
106.7under Minnesota Statutes, sections 124D.135, 124D.16 and 124D.20. The department
106.8shall adjust the fiscal year 2006 account balances reported by former Independent School
106.9Districts Nos. 806, Elgin-Millville, and 810, Plainview, to reflect any permanent account
106.10of fund transfers made under Minnesota Statutes, section 123B.79.
106.11EFFECTIVE DATE.This section is effective the day following final enactment.

106.12    Sec. 12. FUND TRANSFER.
106.13    Subdivision 1. Brainerd. Notwithstanding Minnesota Statutes, section 123B.79
106.14or 123B.80, on June 30, 2007, Independent School District No. 181, Brainerd, may
106.15permanently transfer up to $750,000 from its reserved for operating capital account to its
106.16undesignated general fund balance without making a levy reduction.
106.17    Subd. 2. Campbell-Tintah. Notwithstanding Minnesota Statutes, section 123B.79
106.18or 123B.80, on June 30, 2007, Independent School District No. 852, Campbell-Tintah,
106.19may permanently transfer up to $100,000 from its reserved for operating capital account
106.20to its undesignated general fund without making a levy reduction.
106.21    Subd. 3. Comfrey. Notwithstanding Minnesota Statutes, section 123B.79
106.22or 123B.80, on June 30, 2007, Independent School District No. 81, Comfrey, may
106.23permanently transfer up to $250,000 from its reserved for operating capital account to its
106.24undesignated general fund balance without making a levy reduction.
106.25    Subd. 4. Floodwood. Notwithstanding Minnesota Statutes, section 123B.79
106.26or 123B.80, on June 30, 2007, Independent School District No. 698, Floodwood,
106.27may transfer up to $227,000 from its reserved for disabled accessibility account to its
106.28undesignated general fund balance without making a levy reduction.
106.29    Subd. 5. International Falls. Notwithstanding Minnesota Statutes, section 123B.79
106.30or 123B.80, on June 30, 2007, Independent School District No. 361, International Falls,
106.31may permanently transfer up to $100,000 from its reserved for operating capital account
106.32to its undesignated general fund balance without making a levy reduction.
106.33    Subd. 6. Jackson County Central. Notwithstanding Minnesota Statutes, section
106.34123B.79 or 123B.80, on June 30, 2007, Independent School District No. 2895, Jackson
107.1County Central, may permanently transfer up to $300,000 from its reserved for operating
107.2capital account to its undesignated general fund balance without making a levy reduction.
107.3    Subd. 7. Red Rock Central. Notwithstanding Minnesota Statutes, section 123B.79
107.4or 123B.80, on June 30, 2007, Independent School District No. 2884, Red Rock Central,
107.5may permanently transfer up to $81,000 from its reserved for disabled accessibility
107.6account to its undesignated general fund balance without making a levy reduction.
107.7    Subd. 8. Windom. Notwithstanding Minnesota Statutes, section 123B.79 or
107.8123B.80, on June 30, 2007, Independent School District No. 177, Windom, may transfer
107.9up to $50,000 from its reserved for operating capital account to its undesignated general
107.10fund balance without making a levy reduction.
107.11EFFECTIVE DATE.This section is effective the day following final enactment.

107.12    Sec. 13. APPROPRIATIONS.
107.13    Subdivision 1. Department of Education. The sums indicated in this section are
107.14appropriated from the general fund to the Department of Education for the fiscal years
107.15designated.
107.16    Subd. 2. School lunch. For school lunch aid according to Minnesota Statutes,
107.17section 124D.111, and Code of Federal Regulations, title 7, section 210.17:
107.18
$
12,022,000
.....
2008
107.19
$
12,166,000
.....
2009
107.20    Subd. 3. Traditional school breakfast; kindergarten milk. For traditional school
107.21breakfast aid and kindergarten milk under Minnesota Statutes, sections 124D.1158 and
107.22124D.118:
107.23
$
5,460,000
.....
2008
107.24
$
5,695,000
.....
2009
107.25    Subd. 4. Summer food service replacement aid. For summer food service
107.26replacement aid under Minnesota Statutes, section 124D.119:
107.27
$
150,000
.....
2008
107.28
$
150,000
.....
2009
107.29    Subd. 5. Plainview-Elgin-Millville fund balance replacement aid.
107.30    For fund balance replacement aid for Independent School District No. 2899,
107.31Plainview-Elgin-Millville:
107.32
$
17,000
.....
2008
108.1    This is a onetime appropriation.

108.2    Sec. 14. REPEALER.
108.3Minnesota Statutes 2006, section 123B.749, is repealed.

108.4ARTICLE 6
108.5LIBRARIES

108.6    Section 1. Minnesota Statutes 2006, section 134.31, is amended by adding a
108.7subdivision to read:
108.8    Subd. 4a. Services to the blind and physically handicapped. The Minnesota
108.9Department of Education shall provide specialized services to the blind and physically
108.10handicapped through the Minnesota Library for the Blind and Physically Handicapped
108.11under a cooperative plan with the National Library Services for the Blind and Physically
108.12Handicapped of the Library of Congress.

108.13    Sec. 2. DEPARTMENT OF EDUCATION; LIBRARY APPROPRIATIONS.
108.14    Subdivision 1. Department of Education. The sums indicated in this section are
108.15appropriated from the general fund to the Department of Education for the fiscal years
108.16designated.
108.17    Subd. 2. Basic system support. For basic system support grants under Minnesota
108.18Statutes, section 134.355:
108.19
$
9,182,000
.....
2008
108.20
$
13,138,000
.....
2009
108.21    The 2008 appropriation includes $857,000 for 2007 and $8,325,000 for 2008.
108.22    The 2009 appropriation includes $925,000 for 2008 and $12,213,000 for 2009.
108.23    Subd. 3. Multicounty, multitype library systems. For grants under Minnesota
108.24Statutes, sections 134.353 and 134.354, to multicounty, multitype library systems:
108.25
$
1,260,000
.....
2008
108.26
$
1,300,000
.....
2009
108.27    The 2008 appropriation includes $90,000 for 2007 and $1,170,000 for 2008.
108.28    The 2009 appropriation includes $130,000 for 2008 and $1,170,000 for 2009.
108.29    Subd. 4. Electronic library for Minnesota. For statewide licenses to online
108.30databases selected in cooperation with the Minnesota Office of Higher Education for
109.1school media centers, public libraries, state government agency libraries, and public
109.2or private college or university libraries:
109.3
$
900,000
.....
2008
109.4
$
900,000
.....
2009
109.5    Any balance in the first year does not cancel but is available in the second year.
109.6    Subd. 5. Regional library telecommunications aid. For regional library
109.7telecommunications aid under Minnesota Statutes, section 134.355:
109.8
$
2,190,000
.....
2008
109.9
$
2,300,000
.....
2009
109.10    The 2008 appropriation includes $120,000 for 2007 and $2,070,000 for 2008.
109.11    The 2009 appropriation includes $230,000 for 2008 and $2,070,000 for 2009.
109.12    Subd. 6. Hennepin County and Minneapolis library systems merger. For costs
109.13attributable to the library system merger:
109.14
$
4,500,000
.....
2008
109.15    If the Hennepin County and Minneapolis city library systems do not merge, any
109.16unexpended balance remaining in this appropriation must be allocated to increase the
109.17fiscal year 2008 entitlement for Basic System Support Grants under Minnesota Statutes,
109.18section 134.355.
109.19    This appropriation is available through June 30, 2009.
109.20    This is a onetime appropriation.

109.21ARTICLE 7
109.22STATE AGENCIES

109.23    Section 1. [127A.065] CROSS-SUBSIDY REPORT.
109.24    By January 10, the commissioner of education shall submit an annual report to the
109.25legislative committees having jurisdiction over kindergarten through grade 12 education
109.26on the amount each district is cross-subsidizing special education costs with general
109.27education revenue.

109.28    Sec. 2. Minnesota Statutes 2006, section 517.08, subdivision 1c, is amended to read:
109.29    Subd. 1c. Disposition of license fee. (a) Of the marriage license fee collected
109.30pursuant to subdivision 1b, paragraph (a), $15 must be retained by the county. The local
109.31registrar must pay $85 to the commissioner of finance to be deposited as follows:
109.32    (1) $50 in the general fund;
110.1    (2) $3 in the state government special revenue fund to be appropriated to the
110.2commissioner of education public safety for parenting time centers under section 119A.37;
110.3    (3) $2 in the special revenue fund to be appropriated to the commissioner of health
110.4for developing and implementing the MN ENABL program under section 145.9255;
110.5    (4) $25 in the special revenue fund is appropriated to the commissioner of
110.6employment and economic development for the displaced homemaker program under
110.7section 116L.96; and
110.8    (5) $5 in the special revenue fund is appropriated to the commissioner of human
110.9services for the Minnesota Healthy Marriage and Responsible Fatherhood Initiative under
110.10section 256.742.
110.11    (b) Of the $30 fee under subdivision 1b, paragraph (b), $15 must be retained by the
110.12county. The local registrar must pay $15 to the commissioner of finance to be deposited
110.13as follows:
110.14    (1) $5 as provided in paragraph (a), clauses (2) and (3); and
110.15    (2) $10 in the special revenue fund is appropriated to the commissioner of
110.16employment and economic development for the displaced homemaker program under
110.17section 116L.96.
110.18    (c) The increase in the marriage license fee under paragraph (a) provided for in Laws
110.192004, chapter 273, and disbursement of the increase in that fee to the special fund for the
110.20Minnesota Healthy Marriage and Responsible Fatherhood Initiative under paragraph (a),
110.21clause (5), is contingent upon the receipt of federal funding under United States Code, title
110.2242, section 1315, for purposes of the initiative.

110.23    Sec. 3. RULEMAKING AUTHORITY; CAREER AND TECHNICAL
110.24EDUCATION.
110.25    The commissioner of education shall adopt rules under Minnesota Statutes, chapter
110.2614, for the administration of career and technical education programs for grades 7 through
110.2712 under Minnesota Statutes, sections 124D.452, 124D.4531, and 124D.454, to ensure
110.28that the career and technical levy and programs can be administered to serve students
110.29under the current state and local organizational structures.
110.30EFFECTIVE DATE.This section is effective the day following final enactment.

110.31    Sec. 4. APPROPRIATIONS; DEPARTMENT OF EDUCATION.
111.1    Subdivision 1. Department of Education. Unless otherwise indicated, the sums
111.2indicated in this section are appropriated from the general fund to the Department of
111.3Education for the fiscal years designated.
111.4    Subd. 2. Department. (a) For the Department of Education:
111.5
$
22,169,000
.....
2008
111.6
$
22,653,000
.....
2009
111.7    Any balance in the first year does not cancel but is available in the second year.
111.8    (b) $7,000 in fiscal year 2008 is for GRAD test rulemaking.
111.9    (c) $7,000 in fiscal year 2008 is for rulemaking under section 3.
111.10    (d) $40,000 each year is for an early hearing loss intervention coordinator under
111.11Minnesota Statutes, section 125A.63, subdivision 5.
111.12    (e) $260,000 each year is for the Minnesota Children's Museum.
111.13    (f) $41,000 each year is for the Minnesota Academy of Science.
111.14    (g) $619,000 in fiscal year 2008 and $632,000 in fiscal year 2009 are for the Board
111.15of Teaching.
111.16    (h) $163,000 in fiscal year 2008 and $171,000 in fiscal year 2009 are for the Board
111.17of School Administrators.
111.18    (i) $50,000 each year is for the Duluth Children's Museum.
111.19    (j) The expenditures of federal grants and aids as shown in the biennial budget
111.20document and its supplements are approved and appropriated and shall be spent as
111.21indicated.
111.22    (k) None of the amounts appropriated under this subdivision may be used for
111.23Minnesota's Washington, D.C., office.

111.24    Sec. 5. APPROPRIATIONS; MINNESOTA STATE ACADEMIES.
111.25    The sums indicated in this section are appropriated from the general fund to the
111.26Minnesota State Academies for the Deaf and the Blind for the fiscal years designated:
111.27
$
11,603,000
.....
2008
111.28
$
11,730,000
.....
2009
111.29    Any balance in the first year does not cancel but is available in the second year.

111.30    Sec. 6. APPROPRIATIONS; PERPICH CENTER FOR ARTS EDUCATION.
111.31    The sums indicated in this section are appropriated from the general fund to the
111.32Perpich Center for Arts Education for the fiscal years designated:
112.1
$
6,929,000
.....
2008
112.2
$
7,090,000
.....
2009
112.3    Any balance in the first year does not cancel but is available in the second year.

112.4    Sec. 7. APPROPRIATIONS; DEPARTMENT OF PUBLIC SAFETY.
112.5    The sums indicated in this section are appropriated from the state government
112.6special revenue fund to the Department of Public Safety for the fiscal years designated to
112.7fund parenting time centers as described in Minnesota Statutes, section 119A.37:
112.8
$
96,000
.....
2008
112.9
$
96,000
.....
2009

112.10ARTICLE 8
112.11PUPIL TRANSPORTATION STANDARDS

112.12    Section 1. Minnesota Statutes 2006, section 123B.88, subdivision 12, is amended to
112.13read:
112.14    Subd. 12. Early childhood family education participants. Districts may provide
112.15bus transportation along regular school bus routes when space is available for participants
112.16in early childhood family education programs and school readiness programs if these
112.17services do not result in an increase in the district's expenditures for transportation.
112.18The costs allocated to these services, as determined by generally accepted accounting
112.19principles, shall be considered part of the authorized cost for regular transportation for
112.20the purposes of section 123B.92.
112.21EFFECTIVE DATE.This section is effective the day following final enactment
112.22and applies for fiscal year 2007 and later.

112.23    Sec. 2. Minnesota Statutes 2006, section 123B.90, subdivision 2, is amended to read:
112.24    Subd. 2. Student training. (a) Each district must provide public school pupils
112.25enrolled in kindergarten through grade 10 with age-appropriate school bus safety training,
112.26as described in this section, of the following concepts:
112.27    (1) transportation by school bus is a privilege and not a right;
112.28    (2) district policies for student conduct and school bus safety;
112.29    (3) appropriate conduct while on the school bus;
112.30    (4) the danger zones surrounding a school bus;
112.31    (5) procedures for safely boarding and leaving a school bus;
112.32    (6) procedures for safe street or road crossing; and
113.1    (7) school bus evacuation.
113.2    (b) Each nonpublic school located within the district must provide all nonpublic
113.3school pupils enrolled in kindergarten through grade 10 who are transported by school
113.4bus at public expense and attend school within the district's boundaries with training as
113.5required in paragraph (a).
113.6    (c) Students enrolled in kindergarten through grade 6 who are transported by school
113.7bus and are enrolled during the first or second week of school must receive the school bus
113.8safety training competencies by the end of the third week of school. Students enrolled in
113.9grades 7 through 10 who are transported by school bus and are enrolled during the first or
113.10second week of school and have not previously received school bus safety training must
113.11receive the training or receive bus safety instructional materials by the end of the sixth
113.12week of school. Students taking driver's training instructional classes and other students in
113.13grades 9 and 10 must receive training in the laws and proper procedures when operating a
113.14motor vehicle in the vicinity of a school bus as required by section 169.446, subdivisions 2
113.15and 3. Students enrolled in kindergarten through grade 10 who enroll in a school after the
113.16second week of school and are transported by school bus and have not received training
113.17in their previous school district shall undergo school bus safety training or receive bus
113.18safety instructional materials within four weeks of the first day of attendance. Upon
113.19request of the superintendent of schools, the school transportation safety director in each
113.20district must certify to the superintendent of schools annually that all students transported
113.21by school bus within the district have received the school bus safety training according to
113.22this section. Upon request of the superintendent of the school district where the nonpublic
113.23school is located, the principal or other chief administrator of each nonpublic school must
113.24certify annually to the school transportation safety director of the district in which the
113.25school is located that the school's students transported by school bus at public expense
113.26have received training according to this section.
113.27    (d) A district and a nonpublic school with students transported by school bus at
113.28public expense may provide kindergarten pupils with bus safety training before the first
113.29day of school.
113.30    (e) A district and a nonpublic school with students transported by school bus at
113.31public expense may also provide student safety education for bicycling and pedestrian
113.32safety, for students enrolled in kindergarten through grade 5.
113.33    (f) A district and a nonpublic school with students transported by school bus at
113.34public expense must make reasonable accommodations for the school bus safety training
113.35of pupils known to speak English as a second language and pupils with disabilities.
114.1    (g) The district and a nonpublic school with students transported by school bus at
114.2public expense must provide students enrolled in kindergarten through grade 3 school bus
114.3safety training twice during the school year.
114.4    (h) A district and a nonpublic school with students transported by school bus at public
114.5expense must conduct a school bus evacuation drill at least once during the school year.
114.6EFFECTIVE DATE.This section is effective July 1, 2007.

114.7    Sec. 3. Minnesota Statutes 2006, section 169.01, is amended by adding a subdivision
114.8to read:
114.9    Subd. 92. Cellular phone. "Cellular phone" means a cellular, analog, wireless, or
114.10digital telephone capable of sending or receiving telephone or text messages without
114.11an access line for service.

114.12    Sec. 4. Minnesota Statutes 2006, section 169.443, is amended by adding a subdivision
114.13to read:
114.14    Subd. 9. Personal cellular phone call prohibition. A school bus driver may not
114.15operate a school bus while communicating over, or otherwise operating, a cellular phone
114.16for personal reasons, whether hand-held or hands free, when the vehicle is in motion.
114.17EFFECTIVE DATE.This section is effective July 1, 2007.

114.18    Sec. 5. Minnesota Statutes 2006, section 169.447, subdivision 2, is amended to read:
114.19    Subd. 2. Driver seat belt. New School buses and Head Start buses manufactured
114.20after December 31, 1994, must be equipped with driver seat belts and seat belt assemblies
114.21of the type described in section 169.685, subdivision 3. School bus drivers and Head
114.22Start bus drivers must use these seat belts.
114.23EFFECTIVE DATE.This section is effective July 1, 2007.

114.24    Sec. 6. Minnesota Statutes 2006, section 169.4501, subdivision 1, is amended to read:
114.25    Subdivision 1. National standards adopted. Except as provided in sections
114.26169.4502 and 169.4503, the construction, design, equipment, and color of types A, B, C,
114.27and D and multifunctional school activity bus school buses used for the transportation
114.28of school children shall meet the requirements of the "bus chassis standards" and "bus
114.29body standards" in the 2000 2005 edition of the "National School Transportation
114.30Specifications and Procedures" adopted by the National Conference Congress on School
114.31Transportation. Except as provided in section 169.4504, the construction, design, and
115.1equipment of types A, B, C, and D and multifunctional school activity bus school buses
115.2used for the transportation of students with disabilities also shall meet the requirements
115.3of the "specially equipped school bus standards" in the 2000 2005 National School
115.4Transportation Specifications and Procedures. The "bus chassis standards," "bus body
115.5standards," and "specially equipped school bus standards" sections of the 2000 2005
115.6edition of the "National School Transportation Specifications and Procedures" are
115.7incorporated by reference in this chapter.
115.8EFFECTIVE DATE.This section is effective January 1, 2008.

115.9    Sec. 7. Minnesota Statutes 2006, section 169.4501, subdivision 2, is amended to read:
115.10    Subd. 2. Applicability. (a) The standards adopted in this section and sections
115.11169.4502 and 169.4503, govern the construction, design, equipment, and color of school
115.12buses used for the transportation of school children, when owned or leased and operated
115.13by a school or privately owned or leased and operated under a contract with a school.
115.14Each school, its officers and employees, and each person employed under the contract is
115.15subject to these standards.
115.16    (b) The standards apply to school buses manufactured after October 31, 2004
115.17December 31, 2007. Buses complying with the standards when manufactured need not
115.18comply with standards established later except as specifically provided for by law.
115.19    (c) A school bus manufactured on or before October 31, 2004 December 31,
115.202007, must conform to the Minnesota standards in effect on the date the vehicle was
115.21manufactured except as specifically provided for in law.
115.22    (d) A new bus body may be remounted on a used chassis provided that the remounted
115.23vehicle meets state and federal standards for new buses which are current at the time of the
115.24remounting. Permission must be obtained from the commissioner of public safety before
115.25the remounting is done. A used bus body may not be remounted on a new or used chassis.
115.26EFFECTIVE DATE.This section is effective January 1, 2008.

115.27    Sec. 8. Minnesota Statutes 2006, section 169.4502, subdivision 5, is amended to read:
115.28    Subd. 5. Electrical system; battery. (a) The storage battery, as established by the
115.29manufacturer's rating, must be of sufficient capacity to care for starting, lighting, signal
115.30devices, heating, and other electrical equipment. In a bus with a gas-powered chassis, the
115.31battery or batteries must provide a minimum of 800 cold cranking amperes. In a bus
115.32with a diesel-powered chassis, the battery or batteries must provide a minimum of 1050
115.33cold cranking amperes.
116.1    (b) In a type B bus with a gross vehicle weight rating of 15,000 pounds or more, and
116.2type C and D buses, the battery shall be temporarily mounted on the chassis frame. The
116.3final location of the battery and the appropriate cable lengths in these buses must comply
116.4with the SBMI design objectives booklet.
116.5    (c) All batteries shall be mounted according to chassis manufacturers'
116.6recommendations.
116.7    (d) In a type C bus, other than are powered by diesel fuel, a battery providing at least
116.8550 cold cranking amperes may be installed in the engine compartment only if used in
116.9combination with a generator or alternator of at least 120 130 amperes.
116.10    (e) A bus with a gross vehicle weight rating of 15,000 pounds or less may be
116.11equipped with a battery to provide a minimum of 550 cold cranking amperes only if used
116.12in combination with an alternator of at least 80 130 amperes. This paragraph does not
116.13apply to those buses with wheelchair lifts or diesel engines.
116.14EFFECTIVE DATE.This section is effective January 1, 2008.

116.15    Sec. 9. Minnesota Statutes 2006, section 169.4503, subdivision 13, is amended to read:
116.16    Subd. 13. Identification. (a) Each bus shall, in the beltline, identify the school
116.17district serviced, or company name, or owner of the bus. Numbers necessary for
116.18identification must appear on the sides and rear of the bus. Symbols or letters may
116.19be used on the outside of the bus near the entrance door for student identification. A
116.20manufacturer's nameplate or logo may be placed on the bus.
116.21    (b) Effective December 31, 1994, all type A, B, C, and D buses sold must display
116.22lettering "Unlawful to pass when red lights are flashing" on the rear of the bus. The
116.23lettering shall be in two-inch black letters on school bus yellow background. This message
116.24shall be displayed directly below the upper window of the rear door. On rear engine buses,
116.25it shall be centered at approximately the same location. Only signs and lettering approved
116.26or required by state law may be displayed.
116.27EFFECTIVE DATE.This section is effective January 1, 2008.

116.28    Sec. 10. Minnesota Statutes 2006, section 169.4503, subdivision 20, is amended to
116.29read:
116.30    Subd. 20. Seat and crash barriers. (a) All restraining barriers and passenger seats
116.31shall be covered with a material that has fire retardant or fire block characteristics.
116.32    (b) All seats must have a minimum cushion depth of 15 inches and a seat back
116.33height of at least 20 inches above the seating reference point.
117.1EFFECTIVE DATE.This section is effective January 1, 2008.

117.2    Sec. 11. Minnesota Statutes 2006, section 171.02, subdivision 2, is amended to read:
117.3    Subd. 2. Driver's license classifications, endorsements, exemptions. (a) Drivers'
117.4licenses are classified according to the types of vehicles that may be driven by the holder
117.5of each type or class of license. The commissioner may, as appropriate, subdivide the
117.6classes listed in this subdivision and issue licenses classified accordingly.
117.7    (b) Except as provided in paragraph (c), clauses (1) and (2), and subdivision 2a, no
117.8class of license is valid to operate a motorcycle, school bus, tank vehicle, double-trailer
117.9or triple-trailer combination, vehicle transporting hazardous materials, or bus, unless
117.10so endorsed. There are four general classes of licenses as described in paragraphs (c)
117.11through (f).
117.12    (c) Class D drivers' licenses are valid for:
117.13    (1) operating all farm trucks if the farm truck is:
117.14    (i) controlled and operated by a farmer, including operation by an immediate family
117.15member or an employee of the farmer;
117.16    (ii) used to transport agricultural products, farm machinery, or farm supplies,
117.17including hazardous materials, to or from a farm;
117.18    (iii) not used in the operations of a common or contract motor carrier as governed by
117.19Code of Federal Regulations, title 49, part 365; and
117.20    (iv) used within 150 miles of the farm;
117.21    (2) notwithstanding paragraph (b), operating an authorized emergency vehicle,
117.22as defined in section 169.01, subdivision 5, whether or not in excess of 26,000 pounds
117.23gross vehicle weight;
117.24    (3) operating a recreational vehicle as defined in section 168.011, subdivision 25,
117.25that is operated for personal use;
117.26    (4) operating all single-unit vehicles except vehicles with a gross vehicle weight of
117.27more than 26,000 pounds, vehicles designed to carry more than 15 passengers including
117.28the driver, and vehicles that carry hazardous materials;
117.29    (5) notwithstanding paragraph (d), operating a type A school bus or a multifunctional
117.30school activity bus without a school bus endorsement if:
117.31    (i) the bus has a gross vehicle weight of 10,000 pounds or less;
117.32    (ii) the bus is designed to transport 15 or fewer passengers, including the driver; and
117.33    (iii) the requirements of subdivision 2a are satisfied, as determined by the
117.34commissioner;
118.1    (6) operating any vehicle or combination of vehicles when operated by a licensed
118.2peace officer while on duty; and
118.3    (7) towing vehicles if:
118.4    (i) the towed vehicles have a gross vehicle weight of 10,000 pounds or less; or
118.5    (ii) the towed vehicles have a gross vehicle weight of more than 10,000 pounds and
118.6the combination of vehicles has a gross vehicle weight of 26,000 pounds or less.
118.7    (d) Class C drivers' licenses are valid for:
118.8    (1) operating class D motor vehicles;
118.9    (2) with a hazardous materials endorsement, transporting hazardous materials
118.10in class D vehicles; and
118.11    (3) with a school bus endorsement, operating school buses designed to transport 15
118.12or fewer passengers, including the driver.
118.13    (e) Class B drivers' licenses are valid for:
118.14    (1) operating all class C motor vehicles, class D motor vehicles, and all other
118.15single-unit motor vehicles including, with a passenger endorsement, buses; and
118.16    (2) towing only vehicles with a gross vehicle weight of 10,000 pounds or less.
118.17    (f) Class A drivers' licenses are valid for operating any vehicle or combination of
118.18vehicles.
118.19EFFECTIVE DATE.This section is effective January 1, 2008.

118.20    Sec. 12. Minnesota Statutes 2006, section 171.02, subdivision 2a, is amended to read:
118.21    Subd. 2a. Exception for certain school bus drivers. Notwithstanding subdivision
118.222, paragraph (c), the holder of a class D driver's license, without a school bus endorsement,
118.23may operate a type A school bus described in subdivision 2, paragraph (b), under the
118.24following conditions:
118.25    (a) The operator is an employee of the entity that owns, leases, or contracts for the
118.26school bus and is not solely hired to provide transportation services under this subdivision.
118.27    (b) The operator drives the school bus only from points of origin to points of
118.28destination, not including home-to-school trips to pick up or drop off students.
118.29    (c) The operator is prohibited from using the eight-light system. Violation of this
118.30paragraph is a misdemeanor.
118.31    (d) The operator's employer has adopted and implemented a policy that provides for
118.32annual training and certification of the operator in:
118.33    (1) safe operation of the type of school bus the operator will be driving;
118.34    (2) understanding student behavior, including issues relating to students with
118.35disabilities;
119.1    (3) encouraging orderly conduct of students on the bus and handling incidents of
119.2misconduct appropriately;
119.3    (4) knowing and understanding relevant laws, rules of the road, and local school
119.4bus safety policies;
119.5    (5) handling emergency situations; and
119.6    (6) safe loading and unloading of students.
119.7    (e) A background check or background investigation of the operator has been
119.8conducted that meets the requirements under section 122A.18, subdivision 8, or 123B.03
119.9for teachers; section 144.057 or chapter 245C for day care employees; or section 171.321,
119.10subdivision 3
, for all other persons operating a type A school bus under this subdivision.
119.11    (f) Operators shall submit to a physical examination as required by section 171.321,
119.12subdivision 2
.
119.13    (g) The operator's driver's license is verified annually by the entity that owns, leases,
119.14or contracts for the school bus.
119.15    (h) A person who sustains a conviction, as defined under section 609.02, of violating
119.16section 169A.25, 169A.26, 169A.27, 169A.31, 169A.51, or 169A.52, or a similar statute
119.17or ordinance of another state is precluded from operating a school bus for five years
119.18from the date of conviction.
119.19    (i) A person who has ever been convicted of a disqualifying offense as defined in
119.20section 171.3215, subdivision 1, paragraph (c), may not operate a school bus under this
119.21subdivision.
119.22    (j) A person who sustains a conviction, as defined under section 609.02, of a fourth
119.23moving offense in violation of chapter 169 is precluded from operating a school bus for
119.24one year from the date of the last conviction.
119.25    (k) Students riding the school bus must have training required under section
119.26123B.90, subdivision 2 .
119.27    (l) An operator must be trained in the proper use of child safety restraints as set
119.28forth in the National Highway Traffic Safety Administration's "Guideline for the Safe
119.29Transportation of Pre-school Age Children in School Buses.," if child safety restraints are
119.30used by the passengers.
119.31    (m) Annual certification of the requirements listed in this subdivision must be
119.32maintained under separate file at the business location for each operator licensed under
119.33this subdivision and subdivision 2, paragraph (b), clause (5). The business manager,
119.34school board, governing body of a nonpublic school, or any other entity that owns,
119.35leases, or contracts for the school bus operating under this subdivision is responsible
119.36for maintaining these files for inspection.
120.1    (n) The school bus must bear a current certificate of inspection issued under section
120.2169.451 .
120.3    (o) The word "School" on the front and rear of the bus must be covered by a sign
120.4that reads "Activities" when the bus is being operated under authority of this subdivision.
120.5EFFECTIVE DATE.This section is effective January 1, 2008.

120.6    Sec. 13. Minnesota Statutes 2006, section 171.321, subdivision 4, is amended to read:
120.7    Subd. 4. Training. (a) No person shall drive a class A, B, C, or D school bus when
120.8transporting school children to or from school or upon a school-related trip or activity
120.9without having demonstrated sufficient skills and knowledge to transport students in
120.10a safe and legal manner.
120.11    (b) A bus driver must have training or experience that allows the driver to meet at
120.12least the following competencies:
120.13    (1) safely operate the type of school bus the driver will be driving;
120.14    (2) understand student behavior, including issues relating to students with
120.15disabilities;
120.16    (3) encourage orderly conduct of students on the bus and handle incidents of
120.17misconduct appropriately;
120.18    (4) know and understand relevant laws, rules of the road, and local school bus
120.19safety policies;
120.20    (5) handle emergency situations; and
120.21    (6) safely load and unload students.
120.22    (c) The commissioner of public safety shall develop a comprehensive model
120.23school bus driver training program and model assessments for school bus driver training
120.24competencies, which are not subject to chapter 14. A school district, nonpublic school, or
120.25private contractor may use alternative assessments for bus driver training competencies
120.26with the approval of the commissioner of public safety. A driver may receive at least eight
120.27hours of school bus in-service training any year, as an alternative to being assessed for bus
120.28driver competencies after the initial year of being assessed for bus driver competencies.
120.29The employer shall keep the assessment or a record of the in-service training for the
120.30current period available for inspection by representatives of the commissioner.
120.31EFFECTIVE DATE.This section is effective July 1, 2007.

120.32    Sec. 14. RULES REVISED: COMMISSIONER OF PUBLIC SAFETY.
121.1    Subdivision 1. Rules revised under the good cause exemption. The commissioner
121.2of public safety must amend and adopt the revisions to the rules listed in subdivisions 2 to
121.38 under the good cause exemption to the rulemaking process under Minnesota Statutes,
121.4section 14.388, subdivision 1, clause (3).
121.5    Subd. 2. Minnesota Rules, part 7470.0500. The commissioner of public safety
121.6must amend Minnesota Rules, part 7470.0500, by replacing two obsolete references to the
121.7Department of Children, Families, and Learning, with a reference to the Department of
121.8Public Safety and removing references to specifically repealed rules.
121.9    Subd. 3. Minnesota Rules, part 7470.0700. The commissioner of public safety
121.10must amend Minnesota Rules, part 7470.0700, as follows:
121.11    (1) for the points assigned to school bus equipment defects, strike the reference to
121.12"orange" school buses and include a new school bus color exemption for multifunctional
121.13school activity buses; and
121.14    (2) replace the references to type I and type II school buses with type A, B, C,
121.15or D school buses.
121.16    Subd. 4. Minnesota Rules, part 7470.1000. The commissioner of public safety
121.17must amend Minnesota Rules, part 7470.1000, to:
121.18    (1) include multifunctional school activity buses in the headnote;
121.19    (2) update subpart 1 to include multifunctional school activity buses as a type of
121.20school bus listed after bus types A, B, C, and D;
121.21    (3) modify subpart 2 to clarify that the prohibition against loading or unloading while
121.22adjacent to a turn lane applies only when it is a right-hand turn lane and does not prohibit a
121.23bus from loading or unloading at the side of the road when there is a center turn lane; and
121.24    (3) expand the exception that allows service dogs on school buses to include all
121.25companion animals.
121.26    Subd. 5. Minnesota Rules, part 7470.1100. The commissioner of public safety
121.27must amend Minnesota Rules, part 7470.1100, to include multifunctional school activity
121.28buses in the headnote and amend subpart 1 to include multifunctional school activity buses
121.29as a type of school bus listed after bus types A, B, C, and D. The commissioner must also
121.30amend item B of this part to require drivers to use prewarning flashing signals, flashing
121.31red signals, and stop signals arms on buses that are equipped with those signals.
121.32    Subd. 6. Minnesota Rules, part 7470.1400. The commissioner of public safety
121.33must amend Minnesota Rules, part 7470.1400, to clarify that the operating rules in parts
121.347470.1000 to 7470.1500 apply to buses that are leased and rented as well as to school
121.35buses that are owned by a school district, a nonpublic school, or a private operator under
121.36contract to a school district or nonpublic school.
122.1    Subd. 7. Minnesota Rules, part 7470.1500. The commissioner of public safety
122.2must amend Minnesota Rules, part 7470.1500, to:
122.3    (1) clarify that the prohibition against loading or unloading while adjacent to a turn
122.4lane applies only when it is a right-hand turn lane and does not prohibit a bus from loading
122.5or unloading at the side of the road when there is a center turn lane; and
122.6    (2) delete item H because it is obsolete.
122.7    Subd. 8. Minnesota Rules, part 7470.1700. The commissioner of public safety
122.8must amend Minnesota Rules, part 7470.1700, subpart 2, to:
122.9    (1) clarify that the bus driver and the bus aide must have access to emergency health
122.10care information for the students with disabilities transported on the bus; and
122.11    (2) add an item E that allows the health information to be maintained either in a hard
122.12copy on the vehicle or immediately accessible through a two-way communications system.
122.13EFFECTIVE DATE.This section is effective the day following final enactment.

122.14    Sec. 15. REPEALER.
122.15Minnesota Statutes 2006, sections 169.4502, subdivision 15; and 169.4503,
122.16subdivisions 17, 18, and 26, are repealed.
122.17EFFECTIVE DATE.This section is effective January 1, 2008.

122.18ARTICLE 9
122.19EARLY CHILDHOOD AND ADULT PROGRAMS

122.20    Section 1. Minnesota Statutes 2006, section 119A.52, is amended to read:
122.21119A.52 DISTRIBUTION OF APPROPRIATION.
122.22    (a) The commissioner of education must distribute money appropriated for that
122.23purpose to federally designated Head Start programs to expand services and to serve
122.24additional low-income children. Migrant and Indian reservation programs must be initially
122.25allocated money based on the programs' share of federal funds. The remaining money
122.26must be initially allocated to the remaining local agencies based equally on the agencies'
122.27share of federal funds and on the proportion of eligible children in the agencies' service
122.28area who are not currently being served. A Head Start grantee program must be funded
122.29at a per child rate equal to its contracted, federally funded base level at the start of the
122.30fiscal year. In allocating funds under this paragraph, the commissioner of education
122.31must assure that each Head Start program in existence in 1993 is allocated no less
122.32funding in any fiscal year than was allocated to that program in fiscal year 1993. Before
122.33paying money to the programs, the commissioner must notify each program of its initial
123.1allocation, how the money must be used, and the number of low-income children to be
123.2served with the allocation based upon the federally funded per child rate. Each program
123.3must present a plan under section 119A.535. For any grantee program that cannot utilize
123.4its full allocation at the beginning of the fiscal year, the commissioner must reduce the
123.5allocation proportionately. Money available after the initial allocations are reduced must
123.6be redistributed to eligible grantees programs.
123.7    (b) The commissioner must develop procedures to make payments to programs
123.8based upon the number of children reported to be enrolled during the required time
123.9period of program operations. Enrollment is defined by federal Head Start regulations.
123.10The procedures must include a reporting schedule, corrective action plan requirements,
123.11and financial consequences to be imposed on programs that do not meet full enrollment
123.12after the period of corrective action. Programs reporting chronic underenrollment, as
123.13defined by the commissioner, will have their subsequent program year allocation reduced
123.14proportionately. Funds made available by prorating payments and allocations to programs
123.15with reported underenrollment will be made available to the extent funds exist to fully
123.16enrolled Head Start programs through a form and manner prescribed by the department.

123.17    Sec. 2. Minnesota Statutes 2006, section 119A.535, is amended to read:
123.18119A.535 APPLICATION REQUIREMENTS.
123.19    Eligible Head Start organizations must submit a plan to the department for approval
123.20on a form and in the manner prescribed by the commissioner. The plan must include:
123.21    (1) the estimated number of low-income children and families the program will be
123.22able to serve;
123.23    (2) a description of the program design and service delivery area which meets the
123.24needs of and encourages access by low-income working families;
123.25    (3) a program design that ensures fair and equitable access to Head Start services for
123.26all populations and parts of the service area;
123.27    (4) a plan for coordinating services to maximize assistance for child care costs
123.28available to families under chapter 119B providing Head Start services in conjunction with
123.29full-day child care programs to minimize child transitions, increase program intensity and
123.30duration, and improve child and family outcomes as required in section 119A.5411; and
123.31    (5) identification of regular Head Start, early Head Start, full-day services identified
123.32in section 119A.5411, and innovative services based upon demonstrated needs to be
123.33provided.

123.34    Sec. 3. [119A.5411] FULL-DAY REQUIREMENTS.
124.1    The following phase-in of full-day services in Head Start programs or licensed child
124.2care as defined in chapter 245A is required:
124.3    (1) by fiscal year 2009, a minimum of 25 percent of the total state-funded enrollment
124.4throughout the state must be provided in full-day services;
124.5     (2) by fiscal year 2011, a minimum of 40 percent of the total state-funded enrollment
124.6throughout the state must be provided in full-day services; and
124.7    (3) by fiscal year 2013, a minimum of 50 percent of the total state-funded enrollment
124.8throughout the state must be provided in full-day services.
124.9    Head Start programs may provide full-day services as part of their own program
124.10model or through agreements with licensed full-day child care programs. If licensed child
124.11care providers do not exist in a geographic area, choose not to participate, cannot meet
124.12the federal Head Start performance standards after sufficient opportunity, or a Head Start
124.13program is unable to establish the full-day services as a part of their own program model,
124.14the Head Start program may request exemption from the commissioner.

124.15    Sec. 4. Minnesota Statutes 2006, section 121A.17, subdivision 5, is amended to read:
124.16    Subd. 5. Developmental screening program information. The board must inform
124.17each resident family with a child eligible to participate in the developmental screening
124.18program about the availability of the program and the state's requirement that a child
124.19receive a developmental screening or provide health records indicating that the child
124.20received a comparable developmental screening from a public or private health care
124.21organization or individual health care provider not later than 30 days after the first
124.22day of attending kindergarten in a public school. A school district must inform all
124.23resident families with eligible children under age seven that their children may receive
124.24a developmental screening conducted either by the school district or by a public or
124.25private health care organization or individual health care provider and that the screening
124.26is not required if a statement signed by the child's parent or guardian is submitted to the
124.27administrator or other person having general control and supervision of the school that
124.28the child has not been screened.

124.29    Sec. 5. Minnesota Statutes 2006, section 124D.13, subdivision 1, is amended to read:
124.30    Subdivision 1. Establishment; purpose. A district that provides a community
124.31education program under sections 124D.18 and 124D.19 may establish an early childhood
124.32family education program. Two or more districts, each of which provides a community
124.33education program, may cooperate to jointly provide an early childhood family education
125.1program. The purpose of the early childhood family education program is to provide
125.2parenting education to support children's learning and development.

125.3    Sec. 6. Minnesota Statutes 2006, section 124D.13, subdivision 2, is amended to read:
125.4    Subd. 2. Program characteristics requirements. (a) Early childhood family
125.5education programs are programs for children in the period of life from birth to
125.6kindergarten, for the parents and other relatives of these children, and for expectant
125.7parents. To the extent that funds are insufficient to provide programs for all children,
125.8early childhood family education programs should emphasize programming for a child
125.9from birth to age three and encourage parents and other relatives to involve four- and
125.10five-year-old children in school readiness programs, and other public and nonpublic early
125.11learning programs. A district may not limit participation to school district residents. Early
125.12childhood family education programs may include the following must provide:
125.13    (1) programs to educate parents and other relatives about the physical, mental, and
125.14emotional development of children and to enhance the skills of parents and other relatives
125.15in providing for their children's learning and development;
125.16    (2) programs to enhance the skills of parents and other relatives in providing for their
125.17children's learning and development structured learning activities requiring interaction
125.18between children and their parents or relatives;
125.19    (3) structured learning experiences activities for children and parents and other
125.20relatives that promote children's development and positive interaction with peers, which
125.21are held while parents or relatives attend parent education classes;
125.22    (4) activities designed to detect children's physical, mental, emotional, or behavioral
125.23problems that may cause learning problems;
125.24    (5) activities and materials designed to encourage self-esteem, skills, and behavior
125.25that prevent sexual and other interpersonal violence;
125.26    (6) educational materials which may be borrowed for home use;
125.27    (7) (4) information on related community resources;
125.28    (8) programs to prevent (5) information, materials, and activities that support the
125.29safety of children, including prevention of child abuse and neglect; and
125.30    (9) other programs or activities to improve the health, development, and school
125.31readiness of children; or
125.32    (10) activities designed to maximize development during infancy.
125.33    (6) a community outreach plan to ensure participation by families who reflect the
125.34racial, cultural, and economic diversity of the school district.
126.1    The programs must include learning experiences for children, parents, and other
126.2relatives that promote children's early literacy skills. The programs program must not
126.3include activities for children that do not require substantial involvement of the children's
126.4parents or other relatives. The programs program must be reviewed periodically to assure
126.5the instruction and materials are not racially, culturally, or sexually biased. The programs
126.6must encourage parents to be aware of practices that may affect equitable development of
126.7children.
126.8    (b) For the purposes of this section, "relative" or "relatives" means noncustodial
126.9grandparents or other persons related to a child by blood, marriage, adoption, or foster
126.10placement, excluding parents.

126.11    Sec. 7. Minnesota Statutes 2006, section 124D.13, subdivision 11, is amended to read:
126.12    Subd. 11. Teachers. A school board must employ necessary qualified teachers
126.13licensed in early childhood or parent education for its early childhood family education
126.14programs.

126.15    Sec. 8. Minnesota Statutes 2006, section 124D.13, is amended by adding a subdivision
126.16to read:
126.17    Subd. 13. Plan and program data submission requirements. (a) An early
126.18childhood family education program must submit a biennial plan addressing the
126.19requirements of subdivision 2 for approval by the commissioner. The plan must also
126.20describe how the program provides parenting education and ensures participation of
126.21families representative of the school district. A school district must submit the plan for
126.22approval by the commissioner in the form and manner prescribed by the commissioner.
126.23One-half of districts, as determined by the commissioner, must first submit a biennial plan
126.24by April 1, 2009, and the remaining districts must first submit a plan by April 1, 2010.
126.25    (b) Districts receiving early childhood family education revenue under section
126.26124D.135 must submit annual program data to the department by July 15 in the form and
126.27manner prescribed by the commissioner.
126.28    (c) Beginning with levies for fiscal year 2011, a school district must submit its annual
126.29program data to the department before it may certify a levy under section 124D.135.
126.30Districts selected by the commissioner to submit a biennial plan by April 1, 2009, must
126.31also have an approved plan on file with the commissioner before certifying a levy under
126.32section 124D.135 for fiscal year 2011. Beginning with levies for fiscal year 2012, all
126.33districts must submit annual program data and have an approved biennial plan on file with
126.34the commissioner before certifying a levy under section 124D.135.

127.1    Sec. 9. Minnesota Statutes 2006, section 124D.135, subdivision 1, is amended to read:
127.2    Subdivision 1. Revenue. The revenue for early childhood family education
127.3programs for a school district equals $112 for fiscal year 2007 and $120 for fiscal year
127.42008 and later, times the greater of:
127.5    (1) 150; or
127.6    (2) the number of people under five years of age residing in the district on October 1
127.7of the previous school year.
127.8EFFECTIVE DATE.This section is effective for revenue for fiscal year 2008.

127.9    Sec. 10. Minnesota Statutes 2006, section 124D.135, subdivision 3, is amended to read:
127.10    Subd. 3. Early childhood family education levy. For fiscal year 2001 to obtain
127.11early childhood family education revenue, a district may levy an amount equal to the tax
127.12rate of .5282 percent times the adjusted tax capacity of the district for the year preceding
127.13the year the levy is certified. Beginning with levies for fiscal year 2002, By September
127.1430 of each year, the commissioner shall establish a tax rate for early childhood family
127.15education revenue that raises $21,027,000 for fiscal year 2002 and $22,135,000 in each
127.16fiscal year 2003 and each subsequent year. If the amount of the early childhood family
127.17education levy would exceed the early childhood family education revenue, the early
127.18childhood family education levy must equal the early childhood family education revenue.
127.19Beginning with levies for fiscal year 2011, a district may not certify an early childhood
127.20family education levy unless it has met the annual program data reporting and biennial
127.21plan requirements under section 124D.13, subdivision 13.

127.22    Sec. 11. Minnesota Statutes 2006, section 124D.135, subdivision 5, is amended to read:
127.23    Subd. 5. Use of revenue restricted. (a) Early childhood family education revenue
127.24may be used only for early childhood family education programs.
127.25    (b) Not more than five percent of early childhood family education revenue, as
127.26defined in subdivision 7, may be used to administer early childhood family education
127.27programs.
127.28    (c) An early childhood family education program may use up to ten percent of its
127.29early childhood family education revenue as defined in subdivision 1, including revenue
127.30from participant fees, for equipment that is used in the early childhood family education
127.31program. This revenue may only be used for the following purposes:
127.32    (1) to purchase or lease computers and related materials; and
127.33    (2) to purchase or lease equipment for instruction for participating children and
127.34their families.
128.1    If a district anticipates an unusual circumstance requiring its early childhood family
128.2education program capital expenditures to exceed the ten percent limitation, prior approval
128.3to exceed the limit must be obtained in writing from the commissioner.

128.4    Sec. 12. Minnesota Statutes 2006, section 124D.135, subdivision 6, is amended to read:
128.5    Subd. 6. Home visiting levy. A district that is eligible to levy for early childhood
128.6family education under subdivision 3 and that enters into a collaborative agreement to
128.7provide education services and social services to families with young children may levy
128.8an amount equal to $1.60 times the number of people under five years of age residing in
128.9the district on September 1 of the last school year. Levy revenue under this subdivision
128.10must not be included as revenue under subdivision 1. The revenue must be used for home
128.11visiting programs under section 124D.13, subdivision 4.

128.12    Sec. 13. Minnesota Statutes 2006, section 124D.15, subdivision 3, is amended to read:
128.13    Subd. 3. Program requirements. A school readiness program provider must:
128.14    (1) assess each child's cognitive skills when the child enters and again before the
128.15child leaves the program to inform program planning and promote kindergarten readiness;
128.16    (2) provide comprehensive program content based on early childhood research and
128.17professional practice that is focused on children's cognitive skills and development and
128.18prepares children for the transition to kindergarten, including early literacy skills;
128.19    (3) arrange for early childhood screening and appropriate referral;
128.20    (4) involve parents in program planning and decision making;
128.21    (5) coordinate with relevant community-based services; and
128.22    (6) cooperate with adult basic education programs and other adult literacy programs.

128.23    Sec. 14. [124D.2211] AFTER-SCHOOL COMMUNITY LEARNING
128.24PROGRAMS.
128.25    Subdivision 1. Establishment. A competitive statewide after-school community
128.26learning grant program is established to provide grants to community or nonprofit
128.27organizations, political subdivisions, for-profit or nonprofit child care centers, or
128.28school-based programs that serve youth after school or during nonschool hours. The
128.29commissioner shall develop criteria for after-school community learning programs.
128.30    Subd. 2. Program outcomes. The expected outcomes of the after-school
128.31community learning programs are to increase:
128.32    (1) school connectedness of participants;
129.1    (2) academic achievement of participating students in one or more core academic
129.2areas;
129.3    (3) the capacity of participants to become productive adults; and
129.4    (4) prevent truancy from school and prevent juvenile crime.
129.5    Subd. 3. Grants. An applicant shall submit an after-school community learning
129.6program proposal to the commissioner. The submitted plan must include:
129.7    (1) collaboration with and leverage of existing community resources that have
129.8demonstrated effectiveness;
129.9    (2) outreach to children and youth; and
129.10    (3) involvement of local governments, including park and recreation boards or
129.11schools, unless no government agency is appropriate.
129.12    Proposals will be reviewed and approved by the commissioner.

129.13    Sec. 15. Minnesota Statutes 2006, section 124D.531, subdivision 1, is amended to read:
129.14    Subdivision 1. State total adult basic education aid. (a) The state total adult basic
129.15education aid for fiscal year 2005 is $36,509,000. The state total adult basic education
129.16aid for fiscal year 2006 equals $36,587,000 plus any amount that is not paid for during
129.17the previous fiscal year, as a result of adjustments under subdivision 4, paragraph (a), or
129.18section 124D.52, subdivision 3. The state total adult basic education aid for fiscal year
129.192007 equals $37,673,000 plus any amount that is not paid for during the previous fiscal
129.20year, as a result of adjustments under subdivision 4, paragraph (a), or section 124D.52,
129.21subdivision 3
. The state total adult basic education aid for fiscal year 2008 equals
129.22$40,650,000, plus any amount that is not paid during the previous fiscal year as a result of
129.23adjustments under subdivision 4, paragraph (a), or section 124D.52, subdivision 3. The
129.24state total adult basic education aid for later fiscal years equals:
129.25    (1) the state total adult basic education aid for the preceding fiscal year plus any
129.26amount that is not paid for during the previous fiscal year, as a result of adjustments under
129.27subdivision 4, paragraph (a), or section 124D.52, subdivision 3; times
129.28    (2) the lesser of:
129.29    (i) 1.03; or
129.30    (ii) the greater of 1.00 or the ratio of the state total contact hours in the first prior
129.31program year to the state total contact hours in the second prior program year.
129.32    Beginning in fiscal year 2002, two percent of the state total adult basic education
129.33aid must be set aside for adult basic education supplemental service grants under section
129.34124D.522 .
130.1    (b) The state total adult basic education aid, excluding basic population aid, equals
130.2the difference between the amount computed in paragraph (a), and the state total basic
130.3population aid under subdivision 2.

130.4    Sec. 16. Minnesota Statutes 2006, section 124D.531, subdivision 4, is amended to read:
130.5    Subd. 4. Adult basic education program aid limit. (a) Notwithstanding
130.6subdivisions 2 and 3, the total adult basic education aid for a program per prior year
130.7contact hour must not exceed $21 $22 per prior year contact hour computed under
130.8subdivision 3, clause (2).
130.9    (b) For fiscal year 2004, the aid for a program under subdivision 3, clause (2),
130.10adjusted for changes in program membership, must not exceed the aid for that program
130.11under subdivision 3, clause (2), for fiscal year 2003 by more than the greater of eight
130.12percent or $10,000.
130.13    (c) For fiscal year 2005, the aid for a program under subdivision 3, clause (2),
130.14adjusted for changes in program membership, must not exceed the sum of the aid for that
130.15program under subdivision 3, clause (2), and Laws 2003, First Special Session chapter 9,
130.16article 9, section 8, paragraph (a), for the preceding fiscal year by more than the greater of
130.17eight percent or $10,000.
130.18    (d) (b) For fiscal year 2006 and later fiscal year 2007, the aid for a program under
130.19subdivision 3, clause (2), adjusted for changes in program membership, must not exceed
130.20the aid for that program under subdivision 3, clause (2), for the first preceding fiscal year
130.21by more than the greater of eight percent or $10,000.
130.22    (c) For fiscal year 2008 and later, the aid for a program under subdivision 3,
130.23clause (2), adjusted for changes in program membership, must not exceed the aid for
130.24that program under subdivision 3, clause (2), for the first preceding fiscal year by more
130.25than the greater of 11 percent or $14,000.
130.26    (e) (d) Adult basic education aid is payable to a program for unreimbursed costs
130.27occurring in the program year as defined in section 124D.52, subdivision 3.
130.28    (f) (e) Any adult basic education aid that is not paid to a program because of the
130.29program aid limitation under paragraph (a) must be added to the state total adult basic
130.30education aid for the next fiscal year under subdivision 1. Any adult basic education aid
130.31that is not paid to a program because of the program aid limitations under paragraph (b),
130.32or (c), or (d), must be reallocated among programs by adjusting the rate per contact hour
130.33under subdivision 3, clause (2).

130.34    Sec. 17. APPROPRIATION.
131.1    Subdivision 1. Department of Education. The sums indicated in this section are
131.2appropriated from the general fund to the Department of Education for the fiscal years
131.3designated.
131.4    Subd. 2. Early childhood family education aid. For early childhood family
131.5education aid under Minnesota Statutes, section 124D.135:
131.6
$
21,106,000
.....
2008
131.7
$
21,888,000
.....
2009
131.8    The 2008 appropriation includes $1,796,000 for 2007 and $19,310,000 for 2008.
131.9    The 2009 appropriation includes $2,145,000 for 2008 and $19,743,000 for 2009.
131.10    Subd. 3. School readiness. For revenue for school readiness programs under
131.11Minnesota Statutes, sections 124D.15 and 124D.16:
131.12
$
9,995,000
.....
2008
131.13
$
10,095,000
.....
2009
131.14    The 2008 appropriation includes $909,000 for 2007 and $9,086,000 for 2008.
131.15    The 2009 appropriation includes $1,009,000 for 2008 and $9,086,000 for 2009.
131.16    Subd. 4. Minnesota Learning Resource Center. For a grant to A Chance to
131.17Grow/New Visions for the Minnesota Learning Resource Center's comprehensive training
131.18program for education professionals charged with helping children acquire learning
131.19readiness skills:
131.20
$
75,000
.....
2008
131.21
$
75,000
.....
2009
131.22    Any balance in the first year does not cancel but is available in the second year.
131.23    The Minnesota Learning Resource Center shall issue a report by January 15, 2009, to
131.24the committees of the house of representatives and senate responsible for early childhood
131.25programs. The report shall describe the conduct of the training provided to the A Chance
131.26to Grow/New Visions program, and any findings or lessons learned that might prove
131.27useful to the training of education professionals or the improvement of learning readiness
131.28services for children from such training.
131.29    This is a onetime appropriation.
131.30    Subd. 5. Health and developmental screening aid. For health and developmental
131.31screening aid under Minnesota Statutes, sections 121A.17 and 121A.19:
131.32
$
3,159,000
.....
2008
131.33
$
3,330,000
.....
2009
131.34    The 2008 appropriation includes $288,000 for 2007 and $2,871,000 for 2008.
132.1    The 2009 appropriation includes $319,000 for 2008 and $3,011,000 for 2009.
132.2    Subd. 6. Educate parents partnership. For the educate parents partnership under
132.3Minnesota Statutes, section 124D.129:
132.4
$
50,000
.....
2008
132.5
$
50,000
.....
2009
132.6    Subd. 7. Kindergarten entrance assessment initiative and intervention
132.7program. For the kindergarten entrance assessment initiative and intervention program
132.8under Minnesota Statutes, section 124D.162:
132.9
$
584,000
.....
2008
132.10
$
776,000
.....
2009
132.11    Subd. 8. Head Start programs. For Head Start programs under Minnesota
132.12Statutes, section 119A.52:
132.13
$
20,100,000
.....
2008
132.14
$
20,100,000
.....
2009
132.15    Of these amounts, up to 10 percent of the funds allocated to local Head Start
132.16programs annually may be used for innovative services designed either to target Head
132.17Start resources to particular at-risk groups of children or to provide services in addition
132.18to those currently allowable under federal Head Start regulations. Head Start programs
132.19must submit a plan for innovative services as part of the application process described
132.20under Minnesota Statutes, section 119A.535.
132.21    Any balance in the first year does not cancel but is available in the second year.
132.22    Subd. 9. Community education aid. For community education aid under
132.23Minnesota Statutes, section 124D.20:
132.24
$
1,307,000
.....
2008
132.25
$
816,000
.....
2009
132.26    The 2008 appropriation includes $195,000 for 2007 and $1,112,000 for 2008.
132.27    The 2009 appropriation includes $123,000 for 2008 and $693,000 for 2009.
132.28    Subd. 10. Adults with disabilities program aid. For adults with disabilities
132.29programs under Minnesota Statutes, section 124D.56:
132.30
$
881,000
.....
2008
132.31
$
900,000
.....
2009
132.32    The 2008 appropriation includes $71,000 for 2007 and $810,000 for 2008.
132.33    The 2009 appropriation includes $90,000 for 2008 and $810,000 for 2009.
133.1    School districts operating existing adults with disabilities programs that are not fully
133.2funded shall receive full funding for the program beginning in fiscal year 2008 before the
133.3commissioner awards grants to other districts.
133.4    Subd. 11. Hearing-impaired adults. For programs for hearing-impaired adults
133.5under Minnesota Statutes, section 124D.57:
133.6
$
70,000
.....
2008
133.7
$
70,000
.....
2009
133.8    Subd. 12. School-age care revenue. For extended day aid under Minnesota
133.9Statutes, section 124D.22:
133.10
$
1,000
.....
2008
133.11
$
1,000
.....
2009
133.12    The 2008 appropriation includes $0 for 2007 and $1,000 for 2008.
133.13    The 2009 appropriation includes $0 for 2008 and $1,000 for 2009.
133.14    Subd. 13. After-school community learning grants. For after-school community
133.15learning grants:
133.16
$
2,775,000
.....
2008
133.17
$
2,600,000
.....
2009
133.18    The commissioner may hire one full-time equivalent staff person to administer the
133.19statewide after-school community learning grant program.
133.20    This is a onetime appropriation.
133.21    Subd. 14. Adult basic education aid. For adult basic education aid under
133.22Minnesota Statutes, section 124D.531:
133.23
$
40,347,000
.....
2008
133.24
$
41,745,000
.....
2009
133.25    The 2008 appropriation includes $3,759,000 for 2007 and $36,588,000 for 2008.
133.26    The 2009 appropriation includes $4,065,000 for 2008 and $37,680,000 for 2009.
133.27    Subd. 15. GED test fees. For GED test fees under Minnesota Statutes, section
133.28124D.55:
133.29
$
300,000
.....
2008
133.30
$
200,000
.....
2009
133.31    $100,000 in fiscal year 2008 is for GED test fees for homeless persons.
133.32    Any balance in the first year does not cancel but is available in the second year.
134.1    Subd. 16. Adult literacy grants for recent immigrants. For adult literacy grants
134.2for recent immigrants to Minnesota under Laws 2006, chapter 282, article 2, section 26:
134.3
$
1,250,000
.....
2008

134.4    Sec. 18. APPROPRIATIONS; DEPARTMENT OF HEALTH.
134.5    Subdivision 1. Department of Health. The sums indicated in this section are
134.6appropriated from the general fund to the Department of Health for the fiscal years
134.7designated.
134.8    Subd. 2. Lead hazard reduction. For lead hazard reduction under Minnesota
134.9Statutes, section 144.9512:
134.10
$
100,000
.....
2008
134.11
$
100,000
.....
2009

134.12    Sec. 19. REPEALER.
134.13Minnesota Statutes 2006, sections 124D.175; and 124D.531, subdivision 5, are
134.14repealed.

134.15ARTICLE 10
134.16EDUCATION FORECAST ADJUSTMENTS
134.17A. GENERAL EDUCATION

134.18    Section 1. Laws 2005, First Special Session chapter 5, article 1, section 54, subdivision
134.192, as amended by Laws 2006, chapter 282, article 3, section 2, is amended to read:
134.20    Subd. 2 General education aid For general education aid under Minnesota Statutes,
134.21section 126C.13, subdivision 4:
134.22
$
5,819,153,000
.....
2006
134.23
134.24
$
5,472,238,000
5,453,693,000
.....
2007
134.25    The 2006 appropriation includes $787,978,000 for 2005 and $5,031,175,000 for
134.262006.
134.27    The 2007 appropriation includes $513,848,000 $518,218,000 for 2006 and
134.28$4,958,390,000 $4,935,475,000 for 2007.
134.29EFFECTIVE DATE.This section is effective the day following final enactment.

135.1    Sec. 2. Laws 2005, First Special Session chapter 5, article 1, section 54, subdivision 4,
135.2is amended to read:
135.3    Subd. 4. Enrollment options transportation. For transportation of pupils attending
135.4postsecondary institutions under Minnesota Statutes, section 124D.09, or for transportation
135.5of pupils attending nonresident districts under Minnesota Statutes, section 124D.03:
135.6
$
55,000
.....
2006
135.7
135.8
$
55,000
93,000
.....
2007
135.9EFFECTIVE DATE.This section is effective the day following final enactment.

135.10    Sec. 3. Laws 2005, First Special Session chapter 5, article 1, section 54, subdivision 5,
135.11as amended by Laws 2006, chapter 282, article 7, section 2, is amended to read:
135.12    Subd. 5. Abatement revenue. For abatement aid under Minnesota Statutes, section
135.13127A.49 :
135.14
$
909,000
.....
2006
135.15
135.16
$
1,026,000
765,000
.....
2007
135.17    The 2006 appropriation includes $187,000 for 2005 and $722,000 for 2006.
135.18    The 2007 appropriation includes $80,000 for 2006 and $946,000 $685,000 for 2007.
135.19EFFECTIVE DATE.This section is effective the day following final enactment.

135.20    Sec. 4. Laws 2005, First Special Session chapter 5, article 1, section 54, subdivision 6,
135.21as amended by Laws 2006, chapter 282, article 7, section 3, is amended to read:
135.22    Subd. 6. Consolidation transition. For districts consolidating under Minnesota
135.23Statutes, section 123A.485:
135.24
135.25
$
527,000
388,000
.....
2007
135.26    The 2007 appropriation includes $0 for 2006 and $527,000 $388,000 for 2007.
135.27EFFECTIVE DATE.This section is effective the day following final enactment.

135.28    Sec. 5. Laws 2005, First Special Session chapter 5, article 1, section 54, subdivision 7,
135.29as amended by Laws 2006, chapter 282, article 7, section 4, is amended to read:
135.30    Subd. 7. Nonpublic pupil education aid. For nonpublic pupil education aid under
135.31Minnesota Statutes, sections 123B.87 and 123B.40 to 123B.43:
136.1
$
15,458,000
.....
2006
136.2
136.3
$
15,991,000
15,972,000
.....
2007
136.4    The 2006 appropriation includes $1,864,000 for 2005 and $13,594,000 for 2006.
136.5    The 2007 appropriation includes $1,510,000 for 2006 and $14,481,000 $14,462,000
136.6for 2007.
136.7EFFECTIVE DATE.This section is effective the day following final enactment.

136.8    Sec. 6. Laws 2005, First Special Session chapter 5, article 1, section 54, subdivision 8,
136.9as amended by Laws 2006, chapter 282, article 7, section 5, is amended to read:
136.10    Subd. 8. Nonpublic pupil transportation. For nonpublic pupil transportation aid
136.11under Minnesota Statutes, section 123B.92, subdivision 9:
136.12
$
21,371,000
.....
2006
136.13
136.14
$
20,843,000
21,133,000
.....
2007
136.15    The 2006 appropriation includes $3,274,000 for 2005 and $18,097,000 for 2006.
136.16    The 2007 appropriation includes $2,010,000 for 2006 and $18,833,000 $19,123,000
136.17for 2007.
136.18EFFECTIVE DATE.This section is effective the day following final enactment.
136.19B. EDUCATION EXCELLENCE

136.20    Sec. 7. Laws 2005, First Special Session chapter 5, article 2, section 84, subdivision 2,
136.21as amended by Laws 2006, chapter 282, article 7, section 6, is amended to read:
136.22    Subd. 2. Charter school building lease aid. For building lease aid under Minnesota
136.23Statutes, section 124D.11, subdivision 4:
136.24
$
25,331,000
.....
2006
136.25
136.26
$
27,806,000
27,795,000
.....
2007
136.27    The 2006 appropriation includes $3,173,000 for 2005 and $22,158,000 for 2006.
136.28    The 2007 appropriation includes $2,462,000 for 2006 and $25,344,000 $25,333,000
136.29for 2007.
136.30EFFECTIVE DATE.This section is effective the day following final enactment.

136.31    Sec. 8. Laws 2005, First Special Session chapter 5, article 2, section 84, subdivision 3,
136.32as amended by Laws 2006, chapter 282, article 7, section 7, is amended to read:
137.1    Subd. 3. Charter school startup aid. For charter school startup cost aid under
137.2Minnesota Statutes, section 124D.11:
137.3
$
1,291,000
.....
2006
137.4
137.5
$
2,347,000
2,316,000
.....
2007
137.6    The 2006 appropriation includes $0 for 2005 and $1,291,000 for 2006.
137.7    The 2007 appropriation includes $143,000 for 2006 and $2,204,000 $2,173,000
137.8for 2007.
137.9EFFECTIVE DATE.This section is effective the day following final enactment.

137.10    Sec. 9. Laws 2005, First Special Session chapter 5, article 2, section 84, subdivision 4,
137.11as amended by Laws 2006, chapter 282, article 7, section 8, is amended to read:
137.12    Subd. 4. Integration aid. For integration aid under Minnesota Statutes, section
137.13124D.86, subdivision 5 :
137.14
$
59,404,000
.....
2006
137.15
137.16
$
58,405,000
58,075,000
.....
2007
137.17    The 2006 appropriation includes $8,545,000 for 2005 and $50,859,000 for 2006.
137.18    The 2007 appropriation includes $5,650,000 for 2006 and $52,755,000 $52,425,000
137.19for 2007.
137.20EFFECTIVE DATE.This section is effective the day following final enactment.

137.21    Sec. 10. Laws 2005, First Special Session chapter 5, article 2, section 84, subdivision
137.226, as amended by Laws 2006, chapter 282, article 7, section 9, is amended to read:
137.23    Subd. 6. Interdistrict desegregation or integration transportation grants. For
137.24interdistrict desegregation or integration transportation grants under Minnesota Statutes,
137.25section 124D.87:
137.26
$
6,032,000
.....
2006
137.27
137.28
$
10,134,000
8,169,000
.....
2007
137.29EFFECTIVE DATE.This section is effective the day following final enactment.

137.30    Sec. 11. Laws 2005, First Special Session chapter 5, article 2, section 84, subdivision
137.3110, as amended by Laws 2006, chapter 282, article 7, section 11, is amended to read:
138.1    Subd. 10. Tribal contract schools. For tribal contract school aid under Minnesota
138.2Statutes, section 124D.83:
138.3
$
2,338,000
.....
2006
138.4
138.5
$
2,357,000
2,060,000
.....
2007
138.6    The 2006 appropriation includes $348,000 for 2005 and $1,990,000 for 2006.
138.7    The 2007 appropriation includes $221,000 for 2006 and $2,136,000 $1,839,000
138.8for 2007.
138.9EFFECTIVE DATE.This section is effective the day following final enactment.
138.10C. SPECIAL EDUCATION

138.11    Sec. 12. Laws 2005, First Special Session chapter 5, article 3, section 18, subdivision
138.122, as amended by Laws 2006, chapter 282, article 7, section 12, is amended to read:
138.13    Subd. 2. Special education; regular. For special education aid under Minnesota Statutes,
138.14section 125A.75:
138.15
$
559,485,000
.....
2006
138.16
138.17
$
528,106,000
529,257,000
.....
2007
138.18    The 2006 appropriation includes $83,078,000 for 2005 and $476,407,000 for 2006.
138.19    The 2007 appropriation includes $52,934,000 for 2006 and $475,172,000
138.20$476,323,000 for 2007.
138.21EFFECTIVE DATE.This section is effective the day following final enactment.

138.22    Sec. 13. Laws 2005, First Special Session chapter 5, article 3, section 18, subdivision
138.233, as amended by Laws 2006, chapter 282, article 7, section 13, is amended to read:
138.24    Subd. 3. Aid for children with disabilities. For aid under Minnesota Statutes,
138.25section 125A.75, subdivision 3, for children with disabilities placed in residential facilities
138.26within the district boundaries for whom no district of residence can be determined:
138.27
$
1,527,000
.....
2006
138.28
138.29
$
1,624,000
1,410,000
.....
2007
138.30    If the appropriation for either year is insufficient, the appropriation for the other
138.31year is available.
138.32EFFECTIVE DATE.This section is effective the day following final enactment.

139.1    Sec. 14. Laws 2005, First Special Session chapter 5, article 3, section 18, subdivision
139.24, as amended by Laws 2006, chapter 282, article 7, section 14, is amended to read:
139.3    Subd. 4. Travel for home-based services. For aid for teacher travel for home-based
139.4services under Minnesota Statutes, section 125A.75, subdivision 1:
139.5
$
198,000
.....
2006
139.6
139.7
$
195,000
224,000
.....
2007
139.8    The 2006 appropriation includes $28,000 for 2005 and $170,000 for 2006.
139.9    The 2007 appropriation includes $18,000 for 2006 and $177,000 $206,000 for 2007.
139.10EFFECTIVE DATE.This section is effective the day following final enactment.

139.11    Sec. 15. Laws 2005, First Special Session chapter 5, article 3, section 18, subdivision
139.126, as amended by Laws 2006, chapter 282, article 7, section 16, is amended to read:
139.13    Subd. 6. Transition for disabled students. For aid for transition programs for children
139.14with disabilities under Minnesota Statutes, section 124D.454:
139.15
$
9,300,000
.....
2006
139.16
139.17
$
8,781,000
8,800,000
.....
2007
139.18    The 2006 appropriation includes $1,380,000 for 2005 and $7,920,000 for 2006.
139.19    The 2007 appropriation includes $880,000 for 2006 and $7,901,000 $7,920,000
139.20for 2007.
139.21EFFECTIVE DATE.This section is effective the day following final enactment.
139.22D. FACILITIES

139.23    Sec. 16. Laws 2005, First Special Session chapter 5, article 4, section 25, subdivision
139.242, as amended by Laws 2006, chapter 282, article 7, section 18, is amended to read:
139.25    Subd. 2. Health and safety revenue. For health and safety aid according to
139.26Minnesota Statutes, section 123B.57, subdivision 5:
139.27
$
823,000
.....
2006
139.28
139.29
$
352,000
249,000
.....
2007
139.30    The 2006 appropriation includes $211,000 for 2005 and $612,000 for 2006.
139.31    The 2007 appropriation includes $68,000 for 2006 and $284,000 $181,000 for 2007.
139.32EFFECTIVE DATE.This section is effective the day following final enactment.

140.1    Sec. 17. Laws 2005, First Special Session chapter 5, article 4, section 25, subdivision
140.23, as amended by Laws 2006, chapter 282, article 5, section 2, is amended to read:
140.3    Subd. 3. Debt service equalization. For debt service aid according to Minnesota
140.4Statutes, section 123B.53, subdivision 6:
140.5
$
27,206,000
.....
2006
140.6
140.7
$
18,410,000
18,395,000
.....
2007
140.8    The 2006 appropriation includes $4,654,000 for 2005 and $22,552,000 for 2006.
140.9    The 2007 appropriation includes $2,504,000 for 2006 and $15,906,000 $15,891,000
140.10for 2007.
140.11EFFECTIVE DATE.This section is effective the day following final enactment.
140.12E. NUTRITION

140.13    Sec. 18. Laws 2005, First Special Session chapter 5, article 5, section 17, subdivision
140.143, as amended by Laws 2006, chapter 282, article 7, section 20, is amended to read:
140.15    Subd. 3. Traditional school breakfast; kindergarten milk. For traditional school
140.16breakfast aid and kindergarten milk under Minnesota Statutes, sections 124D.1158 and
140.17124D.118 :
140.18
$
4,856,000
.....
2006
140.19
140.20
$
5,044,000
5,175,000
.....
2007
140.21EFFECTIVE DATE.This section is effective the day following final enactment.
140.22F. EARLY CHILDHOOD EDUCATION

140.23    Sec. 19. Laws 2005, First Special Session chapter 5, article 7, section 20, subdivision
140.242, as amended by Laws 2006, chapter 282, article 7, section 24, is amended to read:
140.25    Subd. 2. School readiness. For revenue for school readiness programs under
140.26Minnesota Statutes, sections 124D.15 and 124D.16:
140.27
$
9,528,000
.....
2006
140.28
140.29
$
9,020,000
9,087,000
.....
2007
140.30    The 2006 appropriation includes $1,415,000 for 2005 and $8,113,000 for 2006.
140.31    The 2007 appropriation includes $901,000 for 2006 and $8,119,000 $8,186,000
140.32for 2007.
140.33EFFECTIVE DATE.This section is effective the day following final enactment.

141.1    Sec. 20. Laws 2005, First Special Session chapter 5, article 7, section 20, subdivision
141.23, as amended by Laws 2006, chapter 282, article 2, section 24, is amended to read:
141.3    Subd. 3. Early childhood family education aid. For early childhood family
141.4education aid under Minnesota Statutes, section 124D.135:
141.5
$
15,105,000
.....
2006
141.6
141.7
$
17,792,000
17,639,000
.....
2007
141.8    The 2006 appropriation includes $1,859,000 for 2005 and $13,246,000 for 2006.
141.9    The 2007 appropriation includes $1,471,000 for 2006 and $16,321,000 $16,168,000
141.10for 2007.
141.11EFFECTIVE DATE.This section is effective the day following final enactment.

141.12    Sec. 21. Laws 2005, First Special Session chapter 5, article 7, section 20, subdivision
141.134, as amended by Laws 2006, chapter 282, article 2, section 25, is amended to read:
141.14    Subd. 4. Health and developmental screening aid. For health and developmental
141.15screening aid under Minnesota Statutes, sections 121A.17 and 121A.19:
141.16
$
3,000,000
.....
2006
141.17
141.18
$
2,997,000
2,880,000
.....
2007
141.19    The 2006 appropriation includes $417,000 for 2005 and $2,583,000 for 2006
141.20    The 2007 appropriation includes $287,000 for 2006 and $2,710,000 $2,593,000
141.21for 2007.
141.22EFFECTIVE DATE.This section is effective the day following final enactment.

141.23    Sec. 22. Laws 2006, chapter 282, article 2, section 28, subdivision 4, is amended to
141.24read:
141.25    Subd. 4. Early childhood Part C. For the expansion of early childhood Part C
141.26services:
141.27
$
400,000-0-
.....
2007
141.28EFFECTIVE DATE.This section is effective the day following final enactment.
141.29G. PREVENTION

141.30    Sec. 23. Laws 2005, First Special Session chapter 5, article 8, section 8, subdivision 2,
141.31as amended by Laws 2006, chapter 282, article 7, section 25, is amended to read:
142.1    Subd. 2. Community education aid. For community education aid under Minnesota
142.2Statutes, section 124D.20:
142.3
$
2,043,000
.....
2006
142.4
142.5
$
1,949,000
1,942,000
.....
2007
142.6    The 2006 appropriation includes $385,000 for 2005 and $1,658,000 for 2006.
142.7    The 2007 appropriation includes $184,000 for 2006 and $1,765,000 $1,758,000
142.8for 2007.
142.9EFFECTIVE DATE.This section is effective the day following final enactment.

142.10    Sec. 24. Laws 2005, First Special Session chapter 5, article 8, section 8, subdivision 5,
142.11as amended by Laws 2006, chapter 282, article 7, section 27, is amended to read:
142.12    Subd. 5. School-age care revenue. For extended day aid under Minnesota Statutes,
142.13section 124D.22:
142.14
$
17,000
.....
2006
142.15
$
4,0006,000
.....
2007
142.16    The 2006 appropriation includes $4,000 for 2005 and $13,000 for 2006.
142.17    The 2007 appropriation includes $1,000 for 2006 and $3,000 $5,000 for 2007.
142.18EFFECTIVE DATE.This section is effective the day following final enactment.
142.19H. SELF-SUFFICIENCY AND LIFELONG LEARNING

142.20    Sec. 25. Laws 2005, First Special Session chapter 5, article 9, section 4, subdivision 2,
142.21is amended to read:
142.22    Subd. 2. Adult basic education aid. For adult basic education aid under Minnesota
142.23Statutes:
142.24
$
36,518,000
.....
2006
142.25
142.26
$
36,540,000
37,486,000
.....
2007
142.27    The 2006 appropriation includes $5,707,000 for 2005 and $30,811,000 for 2006.
142.28    The 2007 appropriation includes $5,737,000 $3,654,000 for 2006 and $30,803,000
142.29$33,832,000 for 2007.
142.30EFFECTIVE DATE.This section is effective the day following final enactment.

143.1ARTICLE 11
143.2TECHNICAL AND CONFORMING AMENDMENTS

143.3    Section 1. Minnesota Statutes 2006, section 122A.628, subdivision 2, is amended to
143.4read:
143.5    Subd. 2. Revenue. A school district that is selected to participate in the schools
143.6mentoring schools program under this section may utilize its professional compensation
143.7revenue under section 122A.4142 122A.414, subdivision 4, to pay regional training sites
143.8for staff development and training services.

143.9    Sec. 2. Minnesota Statutes 2006, section 123A.73, subdivision 8, is amended to read:
143.10    Subd. 8. Taxable property. As of the effective date of a consolidation of districts or
143.11the dissolution of a district and its attachment to one or more existing districts pursuant
143.12to chapter 123A, and subject to the conditions of section 126C.42, subdivision 1, all
143.13the taxable property which is in the newly created or enlarged district and which was
143.14previously taxable for the payment of any statutory operating debt theretofore incurred by
143.15any preexisting district of which the taxable property was a part prior to the consolidation
143.16or dissolution and attachment shall remain taxable for the payment of that debt and shall
143.17not become taxable for the payment of any statutory operating debt theretofore incurred
143.18by any preexisting district of which the taxable property was not a part prior to the
143.19consolidation or dissolution and attachment. The amount of statutory operating debt
143.20attributable to that taxable property and to the newly created or enlarged district in which
143.21it is located, and the amount of a preexisting district's reserved fund balance reserve
143.22account for purposes of statutory operating debt reduction attributable to the newly created
143.23or enlarged district, shall be apportioned according to the proportion which the adjusted
143.24net tax capacity of that part of the preexisting district bears to the total adjusted net tax
143.25capacity of the entire preexisting district at the time of the consolidation or dissolution
143.26and attachment. This apportionment shall be made by the county auditor and shall
143.27be incorporated as an annex to the order of the commissioner dividing the assets and
143.28liabilities of the component districts. As used in this section, "statutory operating debt"
143.29shall have the meaning given it in section 123B.81.

143.30    Sec. 3. Minnesota Statutes 2006, section 123B.79, subdivision 6, is amended to read:
143.31    Subd. 6. Account transfer for statutory operating debt. On June 30 of each year,
143.32a district may make a permanent transfer from the general fund account entitled "net
143.33unreserved general fund balance since statutory operating debt" to the account entitled
144.1"reserved fund balance reserve account for purposes of statutory operating debt reduction."
144.2The amount of the transfer is limited to the lesser of (a) the net unreserved general fund
144.3balance, or (b) the sum of the remaining statutory operating debt levies authorized for all
144.4future years according to section 126C.42, subdivision 1. If the net unreserved general
144.5fund balance is less than zero, the district may not make a transfer.

144.6    Sec. 4. Minnesota Statutes 2006, section 123B.81, subdivision 2, is amended to read:
144.7    Subd. 2. Statutory operating debt. If the amount of the operating debt is more
144.8than 2-1/2 percent of the most recent fiscal year's expenditure amount for the funds
144.9considered under subdivision 1, the net negative undesignated fund balance is defined as
144.10"statutory operating debt" for the purposes of this section and sections section 123B.83
144.11and 126C.42, subdivision 1.

144.12    Sec. 5. Minnesota Statutes 2006, section 123B.81, subdivision 4, is amended to read:
144.13    Subd. 4. Debt elimination. If an audit or other verification procedure conducted
144.14pursuant to subdivision 3 determines that a statutory operating debt exists, a district must
144.15follow the procedures set forth in this section 126C.42, subdivision 1, to eliminate this
144.16statutory operating debt.

144.17    Sec. 6. Minnesota Statutes 2006, section 123B.81, subdivision 7, is amended to read:
144.18    Subd. 7. Applicability. This section and the provisions of section 126C.42,
144.19subdivision 1
, are is applicable only to common, independent, and special school districts
144.20and districts formed pursuant to Laws 1967, chapter 822, as amended, and Laws 1969,
144.21chapters 775 and 1060, as amended. This section and the provisions of section 126C.42,
144.22subdivision 1
, do does not apply to Independent School District No. 625.

144.23    Sec. 7. Minnesota Statutes 2006, section 123B.83, subdivision 2, is amended to read:
144.24    Subd. 2. Net unreserved general fund balances. A school district must limit its
144.25expenditures so that its net unreserved general fund balance does not constitute statutory
144.26operating debt as defined in section 126C.42 under section 123B.81.

144.27    Sec. 8. Minnesota Statutes 2006, section 124D.34, subdivision 7, is amended to read:
144.28    Subd. 7. Foundation staff. The commissioner of education shall appoint the
144.29executive director of the foundation from three candidates nominated and submitted by the
144.30foundation board of directors and, as necessary, other staff who shall perform duties and
144.31have responsibilities solely related to the foundation. The employees appointed are not
145.1state employees under chapter 43A, but are covered under section 3.736. The employees
145.2may participate in the state health and state insurance plans for employees in unclassified
145.3service. The employees shall be supervised by the executive director.
145.4    The commissioner shall appoint from the Office of Lifework Development a liaison
145.5to the foundation board from the division in the department responsible for career and
145.6technical education.

145.7    Sec. 9. Minnesota Statutes 2006, section 124D.65, subdivision 11, is amended to read:
145.8    Subd. 11. Allocations from cooperative units. For the purposes of this section
145.9and section 125A.77, pupils of limited English proficiency enrolled in a cooperative
145.10or intermediate school district unit shall be counted by the school district of residence,
145.11and the cooperative unit shall allocate its approved expenditures for limited English
145.12proficiency programs among participating school districts. Limited English proficiency
145.13aid for services provided by a cooperative or intermediate school district shall be paid to
145.14the participating school districts.

145.15    Sec. 10. Minnesota Statutes 2006, section 125A.39, is amended to read:
145.16125A.39 LOCAL INTERAGENCY AGREEMENTS.
145.17    School boards and the county board may enter into agreements to cooperatively
145.18serve and provide funding for children with disabilities, under age five, and their families
145.19within a specified geographic area.
145.20    The local interagency agreement must address, at a minimum, the following issues:
145.21    (1) responsibilities of local agencies on local interagency early intervention
145.22committees (IEIC's), consistent with section 125A.38;
145.23    (2) assignment of financial responsibility for early intervention services;
145.24    (3) methods to resolve intraagency and interagency disputes;
145.25    (4) identification of current resources and recommendations about the allocation of
145.26additional state and federal early intervention funds under the auspices of United States
145.27Code, title 20, section 1471 et seq. (Part C, Public Law 102-119 108-446) and United
145.28States Code, title 20, section 631, et seq. (Chapter I, Public Law 89-313);
145.29    (5) data collection; and
145.30    (6) other components of the local early intervention system consistent with Public
145.31Law 102-119.

145.32    Sec. 11. Minnesota Statutes 2006, section 125A.42, is amended to read:
145.33125A.42 PROCEDURAL SAFEGUARDS; PARENT AND CHILD RIGHTS.
146.1    (a) This section applies to local school and county boards for children from birth
146.2through age two who are eligible for Part H C, Public Law 102-119 108-446, and their
146.3families. This section must be consistent with the Individuals with Disabilities Education
146.4Act, United States Code, title 20, sections 1471 to 1485 (Part H C, Public Law 102-119
146.5108-446), regulations adopted under United States Code, title 20, sections 1471 to 1485,
146.6and sections 125A.259 to 125A.48.
146.7    (b) A parent has the right to:
146.8    (1) inspect and review early intervention records;
146.9    (2) prior written notice of a proposed action in the parents' native language unless it
146.10is clearly not feasible to do so;
146.11    (3) give consent to any proposed action;
146.12    (4) selectively accept or decline any early intervention service; and
146.13    (5) resolve issues regarding the identification, evaluation, or placement of the child,
146.14or the provision of appropriate early intervention services to the child and the child's
146.15family through an impartial due process hearing pursuant to section 125A.46.
146.16    (c) The eligible child has the right to have a surrogate parent appointed by a school
146.17district as required by section 125A.07.

146.18    Sec. 12. Minnesota Statutes 2006, section 125A.44, is amended to read:
146.19125A.44 COMPLAINT PROCEDURE.
146.20    (a) An individual or organization may file a written signed complaint with the
146.21commissioner of the state lead agency alleging that one or more requirements of the Code
146.22of Federal Regulations, title 34, part 303, is not being met. The complaint must include:
146.23    (1) a statement that the state has violated the Individuals with Disabilities Education
146.24Act, United States Code, title 20, section 1471 et seq. (Part C, Public Law 102-119
146.25108-446) or Code of Federal Regulations, title 34, section 303; and
146.26    (2) the facts on which the complaint is based.
146.27    (b) The commissioner of the state lead agency shall receive and coordinate with
146.28other state agencies the review and resolution of a complaint within 60 calendar days
146.29according to the state interagency agreement required under section 125A.48. The
146.30development and disposition of corrective action orders for nonschool agencies shall be
146.31determined by the State Agency Committee (SAC). Failure to comply with corrective
146.32orders may result in fiscal actions or other measures.

146.33    Sec. 13. Minnesota Statutes 2006, section 125A.45, is amended to read:
146.34125A.45 INTERAGENCY DISPUTE PROCEDURE.
147.1    (a) A dispute between a school board and a county board that is responsible for
147.2implementing the provisions of section 125A.29 regarding early identification, child and
147.3family assessment, service coordination, and IFSP development and implementation must
147.4be resolved according to this subdivision when the dispute involves services provided
147.5to children and families eligible under the Individuals with Disabilities Education Act,
147.6United States Code, title 20, section 1471 et seq. (Part C, Public Law 102-119 108-446).
147.7    (b) A dispute occurs when the school board and county board are unable to agree as
147.8to who is responsible to coordinate, provide, pay for, or facilitate payment for services
147.9from public and private sources.
147.10    (c) Written and signed disputes must be filed with the local primary agency.
147.11    (d) The local primary agency must attempt to resolve the matter with the involved
147.12school board and county board and may request mediation from the commissioner of the
147.13state lead agency for this purpose.
147.14    (e) When interagency disputes have not been resolved within 30 calendar days, the
147.15local primary agency must request the commissioner of the state lead agency to review
147.16the matter with the commissioners of health and human services and make a decision.
147.17The commissioner must provide a consistent process for reviewing those procedures. The
147.18commissioners' decision is binding subject to the right of an aggrieved party to appeal to
147.19the state Court of Appeals.
147.20    (f) The local primary agency must ensure that eligible children and their families
147.21receive early intervention services during resolution of a dispute. While a local dispute is
147.22pending, the local primary agency must either assign financial responsibility to an agency
147.23or pay for the service from the early intervention account under section 125A.35. If in
147.24resolving the dispute, it is determined that the assignment of financial responsibility was
147.25inappropriate, the responsibility for payment must be reassigned to the appropriate agency
147.26and the responsible agency must make arrangements for reimbursing any expenditures
147.27incurred by the agency originally assigned financial responsibility.

147.28    Sec. 14. Minnesota Statutes 2006, section 125B.15, is amended to read:
147.29125B.15 INTERNET ACCESS FOR STUDENTS.
147.30    (a) Recognizing the difference between school libraries, school computer labs, and
147.31school media centers, which serve unique educational purposes, and public libraries,
147.32which are designed for public inquiry, all computers at a school site with access to the
147.33Internet available for student use must be equipped to restrict, including by use of
147.34available software filtering technology or other effective methods, all student access
148.1to material that is reasonably believed to be obscene or child pornography or material
148.2harmful to minors under federal or state law.
148.3    (b) A school site is not required to purchase filtering technology if the school site
148.4would incur more than incidental expense in making the purchase.
148.5    (c) A school district receiving technology revenue under section 125B.25 125B.26
148.6must prohibit, including through use of available software filtering technology or other
148.7effective methods, adult access to material that under federal or state law is reasonably
148.8believed to be obscene or child pornography.
148.9    (d) A school district, its agents or employees, are immune from liability for failure
148.10to comply with this section if they have made a good faith effort to comply with the
148.11requirements of this section.
148.12    (e) "School site" means an education site as defined in section 123B.04, subdivision
148.131
, or charter school under section 124D.10.

148.14    Sec. 15. Minnesota Statutes 2006, section 126C.01, subdivision 9, is amended to read:
148.15    Subd. 9. Training and experience index. "Training and experience index"
148.16means a measure of a district's teacher training and experience relative to the education
148.17and experience of teachers in the state. The measure must be determined pursuant to
148.18Minnesota Statutes 1996, section 126C.11.

148.19    Sec. 16. Minnesota Statutes 2006, section 126C.05, subdivision 1, is amended to read:
148.20    Subdivision 1. Pupil unit. Pupil units for each Minnesota resident pupil under the
148.21age of 21 or who meets the requirements of section 120A.20, subdivision 1, paragraph
148.22(c), in average daily membership enrolled in the district of residence, in another district
148.23under sections 123A.05 to 123A.08, 124D.03, 124D.06, 124D.07, 124D.08, or 124D.68;
148.24in a charter school under section 124D.10; or for whom the resident district pays tuition
148.25under section 123A.18, 123A.22, 123A.30, 123A.32, 123A.44, 123A.488, 123B.88,
148.26subdivision 4
, 124D.04, 124D.05, 125A.03 to 125A.24, 125A.51, or 125A.65, shall be
148.27counted according to this subdivision.
148.28    (a) A prekindergarten pupil with a disability who is enrolled in a program approved
148.29by the commissioner and has an individual education plan is counted as the ratio of the
148.30number of hours of assessment and education service to 825 times 1.25 with a minimum
148.31average daily membership of 0.28, but not more than 1.25 pupil units.
148.32    (b) A prekindergarten pupil who is assessed but determined not to be disabled is
148.33counted as the ratio of the number of hours of assessment service to 825 times 1.25.
149.1    (c) A kindergarten pupil with a disability who is enrolled in a program approved
149.2by the commissioner is counted as the ratio of the number of hours of assessment and
149.3education services required in the fiscal year by the pupil's individual education program
149.4plan to 875, but not more than one.
149.5    (d) A kindergarten pupil who is not included in paragraph (c) is counted as .557 of a
149.6pupil unit for fiscal year 2000 and thereafter.
149.7    (e) A pupil who is in any of grades 1 to 3 is counted as 1.115 pupil units for fiscal
149.8year 2000 and thereafter.
149.9    (f) A pupil who is any of grades 4 to 6 is counted as 1.06 pupil units for fiscal
149.10year 1995 and thereafter.
149.11    (g) A pupil who is in any of grades 7 to 12 is counted as 1.3 pupil units.
149.12    (h) A pupil who is in the postsecondary enrollment options program is counted
149.13as 1.3 pupil units.

149.14    Sec. 17. Minnesota Statutes 2006, section 126C.48, subdivision 7, is amended to read:
149.15    Subd. 7. Reporting. For each tax settlement, the county auditor shall report
149.16to each school district by fund, the district tax settlement revenue defined in section
149.17123B.75, subdivision 5 , paragraph (a), and the amount levied pursuant to section 126C.42,
149.18subdivision 1
, on the form specified in section 276.10. The county auditor shall send to
149.19the district a copy of the spread levy report specified in section 275.124.

149.20    Sec. 18. Minnesota Statutes 2006, section 134.355, subdivision 9, is amended to read:
149.21    Subd. 9. Telecommunications aid. An application for regional library
149.22telecommunications aid must, at a minimum, contain information to document the
149.23following:
149.24    (1) the connections are adequate and employ an open network architecture that
149.25will ensure interconnectivity and interoperability with school districts, postsecondary
149.26education, or other governmental agencies;
149.27    (2) that the connection is established through the most cost-effective means and that
149.28the regional library has explored and coordinated connections through school districts,
149.29postsecondary education, or other governmental agencies;
149.30    (3) that the regional library system has filed an e-rate application; and
149.31    (4) other information, as determined by the commissioner of children, families, and
149.32learning education, to ensure that connections are coordinated, efficient, and cost-effective,
149.33take advantage of discounts, and meet applicable state standards.
150.1    The library system may include costs associated with cooperative arrangements with
150.2postsecondary institutions, school districts, and other governmental agencies.

150.3    Sec. 19. REPEALER.
150.4Minnesota Statutes 2006, sections 123A.22, subdivision 11; and 123B.81,
150.5subdivision 8, are repealed.