HF 2475

1st Committee Engrossment - 85th Legislature (2007 - 2008) Posted on 12/22/2009 12:38pm

1.1A bill for an act

1.2relating to education finance; providing funding for prekindergarten through
1.3grade 12 education; authorizing rulemaking; appropriating money;amending
1.4Minnesota Statutes 2006, sections 120B.131, subdivision 2; 120B.31, as
1.5amended; 120B.35, as amended; 120B.36, as amended; 120B.362; 122A.21;
1.6123B.02, subdivision 21; 123B.59, subdivision 1; 123B.62; 124D.04,
1.7subdivisions 3, 6, 8, 9; 124D.05, by adding a subdivision; 124D.10, subdivision
1.820; 124D.55; 125A.65, by adding a subdivision; 125A.76, by adding a
1.9subdivision; 126C.10, subdivision 31, by adding a subdivision; 126C.17,
1.10subdivision 9; 126C.21, subdivision 1; 126C.51; 126C.52, subdivision 2, by
1.11adding a subdivision; 126C.53; 126C.55; 127A.45, subdivision 16; Minnesota
1.12Statutes 2007 Supplement, sections 120B.30; 123B.143, subdivision 1;
1.13124D.531, subdivision 1; 126C.21, subdivision 3; 126C.44; Laws 2007, chapter
1.14146, article 1, section 24, subdivisions 2, 3, 4, 5, 6, 7, 8; article 2, section
1.1546, subdivisions 2, 3, 4, 6, 9, 13; article 3, sections 23, subdivision 2; 24,
1.16subdivisions 3, 4, 9; article 4, section 16, subdivisions 2, 3, 6, 8; article 5, section
1.1713, subdivisions 2, 3, 4, 5; article 7, section 4; article 9, section 17, subdivisions
1.182, 3, 4, 8, 9, 13; Laws 2007, First Special Session chapter 2, article 1, section
1.1911, subdivisions 1, 2, 6; proposing coding for new law in Minnesota Statutes,
1.20chapters 120B; 124D; 127A; 145; repealing Minnesota Statutes 2006, sections
1.21121A.67; 125A.16; 125A.19; 125A.20; 125A.57; Laws 2006, chapter 263,
1.22article 3, section 16; Laws 2007, First Special Session chapter 2, article 1, section
1.2311, subdivisions 3, 4.
1.24BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.25ARTICLE 1

1.26K-12 EDUCATION

1.27    Section 1. Minnesota Statutes 2006, section 120B.131, subdivision 2, is amended to
1.28read:
1.29    Subd. 2. Reimbursement for examination fees. The state may reimburse
1.30college-level examination program (CLEP) fees for a Minnesota public or nonpublic high
1.31school student who has successfully completed one or more college-level courses in high
2.1school in the subject matter of each examination in the following subjects: composition
2.2and literature, mathematics and science, social sciences and history, foreign languages, and
2.3business and humanities. The state may reimburse each student for up to six examination
2.4fees. The commissioner shall establish application procedures and a process and schedule
2.5for fee reimbursements. The commissioner must give priority to reimburse the CLEP
2.6examination fees of students of low-income families.
2.7EFFECTIVE DATE.This section is effective the day following final enactment.

2.8    Sec. 2. [120B.299] DEFINITIONS.
2.9    Subdivision 1. Definitions. The definitions in this section apply to this chapter.
2.10    Subd. 2. Growth. "Growth" compares the difference between a student's
2.11achievement score at two distinct points in time.
2.12    Subd. 3. Value-added. "Value-added" is the amount of achievement a student
2.13demonstrates above an established baseline.
2.14    Subd. 4. Growth-based value-added. "Growth-based value-added" is a
2.15value-added system of assessments that measures the difference between an established
2.16baseline of growth and a student's growth over time.
2.17    Subd. 5. Adequate yearly progress. "Adequate yearly progress" compares the
2.18average achievement of two different groups of students at two different points in time.
2.19    Subd. 6. State growth norm. "State growth norm" is an established statewide
2.20percentile or standard applicable to all students in a particular grade benchmarked to an
2.21established school year. Beginning in the 2008-2009 school year, the state growth norm
2.22is benchmarked to 2006-2007 school year data until the commissioner next changes the
2.23vertically linked scale score. Each time the commissioner changes the vertically linked
2.24scale score, a recognized Minnesota assessment group composed of assessment and
2.25evaluation directors and staff and researchers, in collaboration with the Independent Office
2.26of Educational Accountability under section 120B.31, subdivision 3, must recommend
2.27a new state growth norm that the commissioner must consider when revising standards
2.28under section 120B.023, subdivision 2. For each newly established state growth norm, the
2.29commissioner also must establish criteria for identifying schools and school districts that
2.30demonstrate accelerated growth in order to advance educators' professional development
2.31and to replicate programs that succeed in meeting students' diverse learning needs.
2.32EFFECTIVE DATE.This section is effective the day following final enactment.

3.1    Sec. 3. Minnesota Statutes 2007 Supplement, section 120B.30, is amended to read:
3.2120B.30 STATEWIDE TESTING AND REPORTING SYSTEM.
3.3    Subdivision 1. Statewide testing. (a) The commissioner, with advice from experts
3.4with appropriate technical qualifications and experience and stakeholders, consistent with
3.5subdivision 1a, shall include in the comprehensive assessment system, for each grade
3.6level to be tested, state-constructed tests developed from and aligned with the state's
3.7required academic standards under section 120B.021 and administered annually to all
3.8students in grades 3 through 8 and at the high school level. A state-developed test in a
3.9subject other than writing, developed after the 2002-2003 school year, must include both
3.10machine-scoreable and constructed response questions. The commissioner shall establish
3.11one or more months during which schools shall administer the tests to students each
3.12school year. For students enrolled in grade 8 before the 2005-2006 school year, only
3.13Minnesota basic skills tests in reading, mathematics, and writing shall fulfill students'
3.14basic skills testing requirements for a passing state notation. The passing scores of basic
3.15skills tests in reading and mathematics are the equivalent of 75 percent correct for students
3.16entering grade 9 in 1997 and thereafter, as based on the first uniform test administration of
3.17administered in February 1998.
3.18    (b) For students enrolled in grade 8 in the 2005-2006 school year and later, only the
3.19following options shall fulfill students' state graduation test requirements:
3.20    (1) for reading and mathematics:
3.21    (i) obtaining an achievement level equivalent to or greater than proficient as
3.22determined through a standard setting process on the Minnesota comprehensive
3.23assessments in grade 10 for reading and grade 11 for mathematics or achieving a passing
3.24score as determined through a standard setting process on the graduation-required
3.25assessment for diploma in grade 10 for reading and grade 11 for mathematics or
3.26subsequent retests;
3.27    (ii) achieving a passing score as determined through a standard setting process on the
3.28state-identified language proficiency test in reading and the mathematics test for English
3.29language learners or the graduation-required assessment for diploma equivalent of those
3.30assessments for students designated as English language learners;
3.31    (iii) achieving an individual passing score on the graduation-required assessment
3.32for diploma as determined by appropriate state guidelines for students with an individual
3.33education plan or 504 plan;
3.34    (iv) obtaining achievement level equivalent to or greater than proficient as
3.35determined through a standard setting process on the state-identified alternate assessment
4.1or assessments in grade 10 for reading and grade 11 for mathematics for students with
4.2an individual education plan; or
4.3    (v) achieving an individual passing score on the state-identified alternate assessment
4.4or assessments as determined by appropriate state guidelines for students with an
4.5individual education plan; and
4.6    (2) for writing:
4.7    (i) achieving a passing score on the graduation-required assessment for diploma;
4.8    (ii) achieving a passing score as determined through a standard setting process on
4.9the state-identified language proficiency test in writing for students designated as English
4.10language learners;
4.11    (iii) achieving an individual passing score on the graduation-required assessment
4.12for diploma as determined by appropriate state guidelines for students with an individual
4.13education plan or 504 plan; or
4.14    (iv) achieving an individual passing score on the state-identified alternate assessment
4.15or assessments as determined by appropriate state guidelines for students with an
4.16individual education plan.
4.17     (c) The 3rd through 8th grade and high school level test results shall be available
4.18to districts for diagnostic purposes affecting student learning and district instruction and
4.19curriculum, and for establishing educational accountability. The commissioner must
4.20disseminate to the public the test results upon receiving those results.
4.21     (d) State tests must be constructed and aligned with state academic standards. The
4.22commissioner shall determine the testing process and the order of administration shall be
4.23determined by the commissioner. The statewide results shall be aggregated at the site and
4.24district level, consistent with subdivision 1a.
4.25     (e) In addition to the testing and reporting requirements under this section, the
4.26commissioner shall include the following components in the statewide public reporting
4.27system:
4.28    (1) uniform statewide testing of all students in grades 3 through 8 and at the high
4.29school level that provides appropriate, technically sound accommodations, alternate
4.30assessments, or exemptions consistent with applicable federal law, only with parent or
4.31guardian approval, for those very few students for whom the student's individual education
4.32plan team under sections 125A.05 and 125A.06 determines that the general statewide test
4.33is inappropriate for a student, or for a limited English proficiency student under section
4.34124D.59, subdivision 2 ;
5.1    (2) educational indicators that can be aggregated and compared across school
5.2districts and across time on a statewide basis, including average daily attendance, high
5.3school graduation rates, and high school drop-out rates by age and grade level;
5.4    (3) state results on the American College Test; and
5.5    (4) state results from participation in the National Assessment of Educational
5.6Progress so that the state can benchmark its performance against the nation and other
5.7states, and, where possible, against other countries, and contribute to the national effort
5.8to monitor achievement.
5.9    Subd. 1a. Statewide and local assessments; results. (a) The commissioner must
5.10develop reading, mathematics, and science assessments aligned with state academic
5.11standards that districts and sites must use to monitor student growth toward achieving
5.12those standards. The commissioner must not develop statewide assessments for academic
5.13standards in social studies, health and physical education, and the arts. The commissioner
5.14must require:
5.15    (1) annual reading and mathematics assessments in grades 3 through 8 and at the
5.16high school level for the 2005-2006 school year and later; and
5.17    (2) annual science assessments in one grade in the grades 3 through 5 span, the
5.18grades 6 through 9 8 span, and a life sciences assessment in the grades 10 9 through 12
5.19span for the 2007-2008 school year and later.
5.20    (b) The commissioner must ensure that all statewide tests administered to elementary
5.21and secondary students measure students' academic knowledge and skills and not students'
5.22values, attitudes, and beliefs.
5.23    (c) Reporting of assessment results must:
5.24    (1) provide timely, useful, and understandable information on the performance of
5.25individual students, schools, school districts, and the state;
5.26    (2) include, by no later than the 2008-2009 school year, a growth-based value-added
5.27component that is in addition to a measure for student achievement growth over time
5.28indicator of student achievement under section 120B.35, subdivision 3, paragraph (b); and
5.29    (3)(i) for students enrolled in grade 8 before the 2005-2006 school year, determine
5.30whether students have met the state's basic skills requirements; and
5.31    (ii) for students enrolled in grade 8 in the 2005-2006 school year and later, determine
5.32whether students have met the state's academic standards.
5.33    (d) Consistent with applicable federal law and subdivision 1, paragraph (d), clause
5.34(1), the commissioner must include appropriate, technically sound accommodations or
5.35alternative assessments for the very few students with disabilities for whom statewide
5.36assessments are inappropriate and for students with limited English proficiency.
6.1    (e) A school, school district, and charter school must administer statewide
6.2assessments under this section, as the assessments become available, to evaluate student
6.3progress in achieving the proficiency in the context of the state's grade level academic
6.4standards. If a state assessment is not available, a school, school district, and charter
6.5school must determine locally if a student has met the required academic standards. A
6.6school, school district, or charter school may use a student's performance on a statewide
6.7assessment as one of multiple criteria to determine grade promotion or retention. A
6.8school, school district, or charter school may use a high school student's performance on a
6.9statewide assessment as a percentage of the student's final grade in a course, or place a
6.10student's assessment score on the student's transcript.
6.11    Subd. 2. Department of Education assistance. The Department of Education
6.12shall contract for professional and technical services according to competitive bidding
6.13procedures under chapter 16C for purposes of this section.
6.14    Subd. 3. Reporting. The commissioner shall report test data publicly and to
6.15stakeholders, including the performance achievement levels developed from students'
6.16unweighted test scores in each tested subject and a listing of demographic factors that
6.17strongly correlate with student performance. The commissioner shall also report data that
6.18compares performance results among school sites, school districts, Minnesota and other
6.19states, and Minnesota and other nations. The commissioner shall disseminate to schools
6.20and school districts a more comprehensive report containing testing information that
6.21meets local needs for evaluating instruction and curriculum.
6.22    Subd. 4. Access to tests. The commissioner must adopt and publish a policy
6.23to provide public and parental access for review of basic skills tests, Minnesota
6.24Comprehensive Assessments, or any other such statewide test and assessment. Upon
6.25receiving a written request, the commissioner must make available to parents or guardians
6.26a copy of their student's actual responses to the test questions to be reviewed by the
6.27parent for their review.
6.28EFFECTIVE DATE.This section is effective the day following final enactment.

6.29    Sec. 4. Minnesota Statutes 2006, section 120B.31, as amended by Laws 2007, chapter
6.30146, article 2, section 10, is amended to read:
6.31120B.31 SYSTEM ACCOUNTABILITY AND STATISTICAL
6.32ADJUSTMENTS.
6.33    Subdivision 1. Educational accountability and public reporting. Consistent
6.34with the process direction to adopt a results-oriented graduation rule statewide academic
7.1standards under section 120B.02, the department, in consultation with education and other
7.2system stakeholders, must establish maintain a coordinated and comprehensive system of
7.3educational accountability and public reporting that promotes higher greater academic
7.4achievement, preparation for higher academic education, preparation for the world of
7.5work, citizenship as outlined under sections 120B.021, subdivision 1, clause (4), and
7.6120B.024, paragraph (a), clause (4), and the arts.
7.7    Subd. 2. Statewide testing. Each school year, all school districts shall give a
7.8uniform statewide test to students at specified grades to provide information on the status,
7.9needs and performance of Minnesota students.
7.10    Subd. 3. Educational accountability. (a) The Independent Office of Educational
7.11Accountability, as authorized by Laws 1997, First Special Session chapter 4, article 5,
7.12section 28, subdivision 2, is established, and shall be funded through the Board of Regents
7.13of the University of Minnesota. The office shall advise the education committees of
7.14the legislature and the commissioner of education, at least on a biennial basis, on the
7.15degree to which the statewide educational accountability and reporting system includes a
7.16comprehensive assessment framework that measures school accountability for students
7.17achieving the goals described in the state's results-oriented high school graduation
7.18rule. The office shall determine and annually report to the legislature whether and how
7.19effectively:
7.20    (1) the statewide system of educational accountability utilizes uses multiple
7.21indicators to provide valid and reliable comparative and contextual data on students,
7.22schools, districts, and the state, and if not, recommend ways to improve the accountability
7.23reporting system;
7.24    (2) the commissioner makes statistical adjustments when reporting student data over
7.25time, consistent with clause (4);
7.26    (3) the commissioner uses indicators of student achievement growth a growth-based
7.27value-added indicator of student achievement over time and a value-added assessment
7.28model that estimates the effects of the school and school district on student achievement to
7.29measure school performance, consistent with section 120B.36, subdivision 1 120B.35,
7.30subdivision 3, paragraph (b);
7.31    (4) the commissioner makes data available on students who do not pass one or more
7.32of the state's required GRAD tests and do not receive a diploma as a consequence, and
7.33categorizes these data according to gender, race, eligibility for free or reduced lunch, and
7.34English language proficiency; and
7.35    (5) the commissioner fulfills the requirements under section 127A.095, subdivision 2.
8.1    (b) When the office reviews the statewide educational accountability and reporting
8.2system, it shall also consider:
8.3    (1) the objectivity and neutrality of the state's educational accountability system; and
8.4    (2) the impact of a testing program on school curriculum and student learning.
8.5    Subd. 4. Statistical adjustments; student performance data. In developing
8.6managing policies and assessment processes to hold schools and districts accountable
8.7for high levels of academic standards under section 120B.021, the commissioner shall
8.8aggregate student data over time to report student performance and growth levels
8.9measured at the school, school district, regional, or and statewide level. When collecting
8.10and reporting the performance data, the commissioner shall: (1) acknowledge the impact
8.11of significant demographic factors such as residential instability, the number of single
8.12parent families, parents' level of education, and parents' income level on school outcomes;
8.13and (2) organize and report the data so that state and local policy makers can understand
8.14the educational implications of changes in districts' demographic profiles over time. Any
8.15report the commissioner disseminates containing summary data on student performance
8.16must integrate student performance and the demographic factors that strongly correlate
8.17with that performance.
8.18EFFECTIVE DATE.This section is effective the day following final enactment.

8.19    Sec. 5. Minnesota Statutes 2006, section 120B.35, as amended by Laws 2007, chapter
8.20147, article 8, section 38, is amended to read:
8.21120B.35 STUDENT ACADEMIC ACHIEVEMENT AND PROGRESS
8.22GROWTH.
8.23    Subdivision 1. Adequate yearly progress of schools and students School and
8.24student indicators of growth and achievement. The commissioner must develop
8.25and implement maintain a system for measuring and reporting academic achievement
8.26and individual student progress growth, consistent with the statewide educational
8.27accountability and reporting system. The system components of the system must measure
8.28the adequate yearly progress of schools and the growth of individual students: students'
8.29current achievement in schools under subdivision 2; and individual students' educational
8.30progress growth over time under subdivision 3. The system also must include statewide
8.31measures of student academic achievement growth that identify schools with high levels
8.32of achievement growth, and also schools with low levels of achievement growth that need
8.33improvement. When determining a school's effect, the data must include both statewide
8.34measures of student achievement and, to the extent annual tests are administered,
9.1indicators of achievement growth that take into account a student's prior achievement.
9.2Indicators of achievement and prior achievement must be based on highly reliable
9.3statewide or districtwide assessments. Indicators that take into account a student's prior
9.4achievement must not be used to disregard a school's low achievement or to exclude
9.5a school from a program to improve low achievement levels. The commissioner by
9.6January 15, 2002, must submit a plan for integrating these components to the chairs of
9.7the legislative committees having policy and budgetary responsibilities for elementary
9.8and secondary education.
9.9    Subd. 2. Expectations for federally mandated student academic achievement.
9.10    (a) Each school year, a school district must determine if the student achievement levels
9.11at each school site meet state and local federally mandated expectations. If student
9.12achievement levels at a school site do not meet state and local federally mandated
9.13expectations and the site has not made adequate yearly progress for two consecutive
9.14school years, beginning with the 2001-2002 school year, the district must work with the
9.15school site to adopt a plan to raise student achievement levels to meet state and local
9.16federally mandated expectations. The commissioner of education shall establish student
9.17academic achievement levels to comply with this paragraph.
9.18    (b) School sites identified as not meeting federally mandated expectations must
9.19develop continuous improvement plans in order to meet state and local federally mandated
9.20expectations for student academic achievement. The department, at a district's request,
9.21must assist the district and the school site in developing a plan to improve student
9.22achievement. The plan must include parental involvement components.
9.23    (c) The commissioner must:
9.24    (1) provide assistance to assist school sites and districts identified as not meeting
9.25federally mandated expectations; and
9.26    (2) provide technical assistance to schools that integrate student progress measures
9.27under subdivision 3 in the school continuous improvement plan.
9.28    (d) The commissioner shall establish and maintain a continuous improvement Web
9.29site designed to make data on every school and district available to parents, teachers,
9.30administrators, community members, and the general public.
9.31    Subd. 3. Student progress assessment growth; other state measures. (a)
9.32The state's educational assessment system component measuring individual students'
9.33educational progress must be growth is based, to the extent annual tests are administered,
9.34on indicators of achievement growth that show an individual student's prior achievement.
9.35Indicators of achievement and prior achievement must be are based on highly reliable
9.36statewide or districtwide assessments.
10.1    (b) The commissioner must identify effective models for measuring individual
10.2student progress that enable a school district or school site to perform gains-based
10.3analysis, including evaluating the effects of the teacher, school, and school district on
10.4student achievement over time. At least one model must be a "value-added" assessment
10.5model that reliably estimates those effects for classroom settings where a single teacher
10.6teaches multiple subjects to the same group of students, for team teaching arrangements,
10.7and for other teaching circumstances. use a growth-based value-added system. The
10.8commissioner must apply the state growth norm to students in grades 4 through 8
10.9beginning in the 2008-2009 school year, consistent with section 120B.299, subdivision
10.106, initially benchmarking the state growth norm to 2006-2007 school year data. The
10.11model must allow the user to:
10.12    (1) report student growth at and above the state norm; and
10.13    (2) for all student categories with a cell size of at least 20, report and compare
10.14aggregated and disaggregated state growth data using the nine student categories identified
10.15under the federal 2001 No Child Left Behind Act and two student gender categories of
10.16male and female, respectively. The model must measure the effects that teacher teams
10.17within a grade, teacher teams across an entire grade, the school, and the school district
10.18have on student growth. The model must not compile test results for teacher teams within
10.19a grade or across a grade unless the test results encompass data on three or more teachers.
10.20    (c) If a district has an accountability plan that includes gains-based analysis or
10.21"value-added" assessment, the commissioner shall, to the extent practicable, incorporate
10.22those measures in determining whether the district or school site meets expectations. The
10.23department must coordinate with the district in evaluating school sites and continuous
10.24improvement plans, consistent with best practices. If a district has an accountability
10.25plan that includes other growth-based value-added analysis, the commissioner may, to
10.26the extent practicable and consistent with this section, incorporate those measures in
10.27determining whether the district or school site shows growth, including accelerated growth.
10.28    (d) When reporting student performance under section 120B.36, subdivision 1, the
10.29commissioner annually, beginning July 1, 2011, must report two core measures indicating
10.30the extent to which current high school graduates are being prepared for postsecondary
10.31academic and career opportunities:
10.32    (1) a preparation measure indicating the number and percentage of high school
10.33graduates in the most recent school year who completed course work important to
10.34preparing them for postsecondary academic and career opportunities, consistent with the
10.35core academic subjects required for admission to Minnesota's public four-year colleges
10.36and universities as determined by the Office of Higher Education under chapter 136A; and
11.1    (2) a rigorous coursework measure indicating the number and percentage of high
11.2school graduates in the most recent school year who successfully completed one or more
11.3college-level advanced placement, international baccalaureate, postsecondary enrollment
11.4options including concurrent enrollment, other rigorous courses of study under section
11.5120B.021, subdivision 1a, or industry certification courses or programs.
11.6When reporting the core measures under clauses (1) and (2), the commissioner must also
11.7analyze and report separate categories of information using the nine student categories
11.8identified under the federal 2001 No Child Left Behind Act and two student gender
11.9categories of male and female, respectively.
11.10    (e) When reporting student performance under section 120B.36, subdivision 1, the
11.11commissioner annually, beginning July 1, 2011, must include summary data showing
11.12students' average self-reported sense of school safety, engagement in school, and the
11.13quality of students' relationship with teachers, administrators, and other students. The
11.14commissioner must gather these data consistently from students in grade 4 or 5, in one
11.15grade level in grades 6 through 8, and in one grade level in high school, as determined by
11.16the commissioner in consultation with recognized and qualified experts.
11.17    Subd. 4. Improving schools. Consistent with the requirements of this section, the
11.18commissioner of education must establish a second achievement benchmark to identify
11.19improving schools. The commissioner must recommend to annually report to the public
11.20and the legislature by February 15, 2002, indicators in addition to the achievement
11.21benchmark for identifying improving schools, including an indicator requiring a school to
11.22demonstrate ongoing successful use of best teaching practices best practices learned from
11.23those schools that demonstrate accelerated growth compared to the state growth norm.
11.24    Subd. 5. Improving graduation rates for students with emotional or behavioral
11.25disorders. (a) A district must develop strategies in conjunction with parents of students
11.26with emotional or behavioral disorders and the county board responsible for implementing
11.27sections 245.487 to 245.4889 to keep students with emotional or behavioral disorders in
11.28school, when the district has a drop-out rate for students with an emotional or behavioral
11.29disorder in grades 9 through 12 exceeding 25 percent.
11.30    (b) A district must develop a plan in conjunction with parents of students with
11.31emotional or behavioral disorders and the local mental health authority to increase the
11.32graduation rates of students with emotional or behavioral disorders. A district with a
11.33drop-out rate for children with an emotional or behavioral disturbance in grades 9 through
11.3412 that is in the top 25 percent of all districts shall submit a plan for review and oversight
11.35to the commissioner.
12.1EFFECTIVE DATE.Subdivision 3, paragraph (b), applies to students in the
12.22009-2010 school year and later. Subdivision 3, paragraph (d), applies to students in the
12.32010-2011 school year and later. Subdivision 3, paragraph (e), applies to high school
12.4students in the 2009-2010 school year and later, and to students in any grades 4 through 8
12.5in the 2010-2011 school year and later, consistent with the commissioner's grade level
12.6determinations. Subdivision 4 applies in the 2011-2012 school year and later.

12.7    Sec. 6. Minnesota Statutes 2006, section 120B.36, as amended by Laws 2007, chapter
12.8146, article 2, section 11, is amended to read:
12.9120B.36 SCHOOL ACCOUNTABILITY; APPEALS PROCESS.
12.10    Subdivision 1. School performance report cards. (a) The commissioner shall
12.11use objective criteria based on levels of student performance to report at least student
12.12academic performance under section 120B.35, subdivision 2, the percentages of students
12.13at and above the state growth norm under section 120B.35, subdivision 3, paragraph (b),
12.14school safety and student engagement under section 120B.35, subdivision 3, paragraph
12.15(e), rigorous coursework under section 120B.35, subdivision 3, paragraph (d), two
12.16separate student-to-teacher ratios that clearly indicate the definition of teacher consistent
12.17with sections 122A.06 and 122A.15 for purposes of determining these ratios, and staff
12.18characteristics excluding salaries, with a value-added component added no later than
12.19the 2008-2009 school year student enrollment demographics, district mobility, and
12.20extracurricular activities. The report must indicate a school's adequate yearly progress
12.21status, and must not set any designations applicable to high- and low-performing schools
12.22due solely to adequate yearly progress status.
12.23    (b) The commissioner shall develop, annually update, and post on the department
12.24Web site school performance report cards.
12.25    (c) The commissioner must make available the first performance report cards by
12.26November 2003, and during the beginning of each school year thereafter.
12.27    (d) A school or district may appeal its adequate yearly progress status in writing to
12.28the commissioner within 30 days of receiving the notice of its status. The commissioner's
12.29decision to uphold or deny an appeal is final.
12.30    (e) School performance report cards card data are nonpublic data under section
12.3113.02, subdivision 9 , until not later than ten days after the appeal procedure described in
12.32paragraph (d) concludes. The department shall annually post school performance report
12.33cards to its public Web site no later than September 1.
12.34    Subd. 2. Adequate yearly progress data. All data the department receives,
12.35collects, or creates for purposes of determining to determine adequate yearly progress
13.1designations status under Public Law 107-110, section 1116, set state growth norms, and
13.2determine student growth are nonpublic data under section 13.02, subdivision 9, until not
13.3later than ten days after the appeal procedure described in subdivision 1, paragraph (d),
13.4concludes. Districts must provide parents sufficiently detailed summary data to permit
13.5parents to appeal under Public Law 107-110, section 1116(b)(2). The department shall
13.6annually post federally mandated adequate yearly progress data and state student growth
13.7data to its public Web site no later than September 1.
13.8EFFECTIVE DATE.This section is effective the day following final enactment.

13.9    Sec. 7. Minnesota Statutes 2006, section 120B.362, is amended to read:
13.10120B.362 GROWTH-BASED VALUE-ADDED ASSESSMENT PROGRAM.
13.11    (a) The commissioner of education must implement a growth-based value-added
13.12assessment program to assist school districts, public schools, and charter schools in
13.13assessing and reporting individual students' growth in academic achievement under section
13.14120B.30, subdivision 1a . The program must use assessments of individual students'
13.15academic achievement to make longitudinal comparisons of each student's academic
13.16growth over time. School districts, public schools, and charter schools may apply to the
13.17commissioner to participate in the initial trial program using a form and in the manner the
13.18commissioner prescribes. The commissioner must select program participants from urban,
13.19suburban, and rural areas throughout the state.
13.20    (b) The commissioner may issue a request for proposals to contract with an
13.21organization that provides a value-added assessment model that reliably estimates school
13.22and school district effects on students' academic achievement over time. The model the
13.23commissioner selects must accommodate diverse data and must use each student's test
13.24data across grades. Data on individual teachers generated under the model are personnel
13.25data under section 13.43.
13.26    (c) The contract under paragraph (b) must be consistent with the definition of "best
13.27value" under section 16C.02, subdivision 4.
13.28EFFECTIVE DATE.This section is effective the day following final enactment.

13.29    Sec. 8. Minnesota Statutes 2006, section 122A.21, is amended to read:
13.30122A.21 TEACHERS' AND ADMINISTRATORS' LICENSES; FEES.
13.31    Subdivision 1. Licensure applications. Each application for the issuance, renewal,
13.32or extension of a license to teach, including applications for licensure via portfolio under
13.33subdivision 2, must be accompanied by a processing fee of $57. Each application for
14.1issuing, renewing, or extending the license of a school administrator or supervisor must
14.2be accompanied by a processing fee in the amount set by the Board of Teaching. The
14.3processing fee for a teacher's license and for the licenses of supervisory personnel must
14.4be paid to the executive secretary of the appropriate board. The executive secretary of
14.5the board shall deposit the fees with the commissioner of finance. The fees as set by the
14.6board are nonrefundable for applicants not qualifying for a license. However, a fee must
14.7be refunded by the commissioner of finance in any case in which the applicant already
14.8holds a valid unexpired license. The board may waive or reduce fees for applicants who
14.9apply at the same time for more than one license.
14.10    Subd. 2. Licensure via portfolio. (a) A candidate seeking licensure via portfolio
14.11must submit a $75 fee to the Educator Licensing Division at the department to determine
14.12the candidate's eligibility for licensure via portfolio. An eligible candidate may use
14.13licensure via portfolio to obtain an initial licensure or to add a licensure field, consistent
14.14with the applicable Board of Teaching licensure rules.
14.15    (b) A candidate for initial licensure must submit to the Educator Licensing Division
14.16at the department one portfolio demonstrating pedagogical competence and one portfolio
14.17demonstrating content competence.
14.18    (c) A candidate seeking to add a licensure field must submit to the Educator
14.19Licensing Division at the department one portfolio demonstrating content competence.
14.20    (d) A candidate must pay to the executive secretary of the Board of Teaching a
14.21$300 fee for the first portfolio submitted for review and a $200 fee for any portfolio
14.22submitted subsequently. The fees must be paid to the executive secretary of the Board of
14.23Teaching. The revenue generated from the fee must be deposited in an education licensure
14.24portfolio account in the special revenue fund. The fees set by the Board of Teaching are
14.25nonrefundable for applicants not qualifying for a license. The Board of Teaching may
14.26waive or reduce fees for candidates based on financial need.

14.27    Sec. 9. Minnesota Statutes 2006, section 123B.02, subdivision 21, is amended to read:
14.28    Subd. 21. Wind energy conversion system. The board, or more than one board
14.29acting jointly under the authority granted by section 471.59, may construct, acquire, own
14.30in whole or in part, operate, and sell and retain and spend the payment received from
14.31selling energy from a wind energy conversion system, as defined in section 216C.06,
14.32subdivision 19 . The board's share of the installed capacity of the wind energy conversion
14.33systems authorized by this subdivision must not exceed 3.3 megawatts of nameplate
14.34capacity. A board owning, operating, or selling energy from a wind energy conversion
14.35system must integrate information about wind energy conversion systems in its educational
15.1programming. The board, or more than one board acting jointly under the authority
15.2granted by section 471.59, may be a limited partner in a partnership, a member of a limited
15.3liability company, or a shareholder in a corporation, established for the sole purpose of
15.4constructing, acquiring, owning in whole or in part, financing, or operating a wind energy
15.5conversion system for the benefit of the district or districts in accordance with this section.
15.6EFFECTIVE DATE.This section is effective the day following final enactment.

15.7    Sec. 10. Minnesota Statutes 2007 Supplement, section 123B.143, subdivision 1,
15.8is amended to read:
15.9    Subdivision 1. Contract; duties. All districts maintaining a classified secondary
15.10school must employ a superintendent who shall be an ex officio nonvoting member of the
15.11school board. The authority for selection and employment of a superintendent must be
15.12vested in the board in all cases. An individual employed by a board as a superintendent
15.13shall have an initial employment contract for a period of time no longer than three years
15.14from the date of employment. Any subsequent employment contract must not exceed a
15.15period of three years. A board, at its discretion, may or may not renew an employment
15.16contract. A board must not, by action or inaction, extend the duration of an existing
15.17employment contract. Beginning 365 days prior to the expiration date of an existing
15.18employment contract, a board may negotiate and enter into a subsequent employment
15.19contract to take effect upon the expiration of the existing contract. A subsequent contract
15.20must be contingent upon the employee completing the terms of an existing contract. If a
15.21contract between a board and a superintendent is terminated prior to the date specified in
15.22the contract, the board may not enter into another superintendent contract with that same
15.23individual that has a term that extends beyond the date specified in the terminated contract.
15.24A board may terminate a superintendent during the term of an employment contract for any
15.25of the grounds specified in section 122A.40, subdivision 9 or 13. A superintendent shall
15.26not rely upon an employment contract with a board to assert any other continuing contract
15.27rights in the position of superintendent under section 122A.40. Notwithstanding the
15.28provisions of sections 122A.40, subdivision 10 or 11, 123A.32, 123A.75, or any other law
15.29to the contrary, no individual shall have a right to employment as a superintendent based
15.30on order of employment in any district. If two or more districts enter into an agreement for
15.31the purchase or sharing of the services of a superintendent, the contracting districts have
15.32the absolute right to select one of the individuals employed to serve as superintendent
15.33in one of the contracting districts and no individual has a right to employment as the
15.34superintendent to provide all or part of the services based on order of employment in a
15.35contracting district. The superintendent of a district shall perform the following:
16.1    (1) visit and supervise the schools in the district, report and make recommendations
16.2about their condition when advisable or on request by the board;
16.3    (2) recommend to the board employment and dismissal of teachers;
16.4    (3) superintend school grading practices and examinations for promotions;
16.5    (4) make reports required by the commissioner; and
16.6    (5) by January 10, submit an annual report to the commissioner in a manner
16.7prescribed by the commissioner, in consultation with school districts, identifying the
16.8expenditures that the district requires to ensure an 80 percent student passage rate on
16.9the MCA-IIs taken in the eighth grade, identifying the highest student passage rate the
16.10district expects it will be able to attain on the MCA-IIs by grade 12, and the amount of
16.11expenditures that the district requires to attain the targeted student passage rate; and
16.12    (6) perform other duties prescribed by the board.
16.13EFFECTIVE DATE.This section is effective the day following final enactment.

16.14    Sec. 11. Minnesota Statutes 2006, section 123B.59, subdivision 1, is amended to read:
16.15    Subdivision 1. To qualify. (a) An independent or special school district qualifies to
16.16participate in the alternative facilities bonding and levy program if the district has:
16.17    (1) more than 66 students per grade;
16.18    (2) over 1,850,000 square feet of space and the average age of building space is 15
16.19years or older or over 1,500,000 square feet and the average age of building space is
16.2035 years or older;
16.21    (3) insufficient funds from projected health and safety revenue and capital facilities
16.22revenue to meet the requirements for deferred maintenance, to make accessibility
16.23improvements, or to make fire, safety, or health repairs; and
16.24    (4) a ten-year facility plan approved by the commissioner according to subdivision 2.
16.25    (b) An independent or special school district not eligible to participate in the
16.26alternative facilities bonding and levy program under paragraph (a) qualifies for limited
16.27participation in the program if the district has:
16.28    (1) one or more health and safety projects with an estimated cost of $500,000 or
16.29more per site that would qualify for health and safety revenue except for the project size
16.30limitation in section 123B.57, subdivision 1, paragraph (b); and
16.31    (2) insufficient funds from capital facilities revenue to fund those projects.
16.32    (c) Notwithstanding the square footage limitation in paragraph (a), clause (2),
16.33a school district that qualified for eligibility under paragraph (a) as of July 1, 2007,
16.34remains eligible for funding under this section as long as the district continues to meet
16.35the requirements of paragraph (a), clauses (1), (3), and (4).
17.1EFFECTIVE DATE.This section is effective the day following final enactment.

17.2    Sec. 12. Minnesota Statutes 2006, section 123B.62, is amended to read:
17.3123B.62 BONDS FOR CERTAIN CAPITAL FACILITIES.
17.4    (a) In addition to other bonding authority, with approval of the commissioner, a
17.5district may issue general obligation bonds for certain capital projects under this section.
17.6The bonds must be used only to make capital improvements including:
17.7    (1) under section 126C.10, subdivision 14, total operating capital revenue uses
17.8specified in clauses (4), (6), (7), (8), (9), and (10);
17.9    (2) the cost of energy modifications;
17.10    (3) improving disability accessibility to school buildings; and
17.11    (4) bringing school buildings into compliance with life and safety codes and fire
17.12codes.
17.13    (b) Before a district issues bonds under this subdivision, it must publish notice
17.14of the intended projects, the amount of the bond issue, and the total amount of district
17.15indebtedness.
17.16    (c) A bond issue tentatively authorized by the board under this subdivision becomes
17.17finally authorized unless a petition signed by more than 15 percent of the registered voters
17.18of the district is filed with the school board within 30 days of the board's adoption of a
17.19resolution stating the board's intention to issue bonds. The percentage is to be determined
17.20with reference to the number of registered voters in the district on the last day before the
17.21petition is filed with the board. The petition must call for a referendum on the question of
17.22whether to issue the bonds for the projects under this section. The approval of 50 percent
17.23plus one of those voting on the question is required to pass a referendum authorized
17.24by this section.
17.25    (d) The bonds must be paid off within ten 15 years of issuance. The bonds must be
17.26issued in compliance with chapter 475, except as otherwise provided in this section. A tax
17.27levy must be made for the payment of principal and interest on the bonds in accordance
17.28with section 475.61. The sum of the tax levies under this section and section 123B.61 for
17.29each year must not exceed the limit specified in section 123B.61. The levy for each year
17.30must be reduced as provided in section 123B.61. A district using an excess amount in the
17.31debt redemption fund to retire the bonds shall report the amount used for this purpose to
17.32the commissioner by July 15 of the following fiscal year. A district having an outstanding
17.33capital loan under section 126C.69 or an outstanding debt service loan under section
17.34126C.68 must not use an excess amount in the debt redemption fund to retire the bonds.
18.1    (e) Notwithstanding paragraph (d), bonds issued by a district within the first
18.2five years following voter approval of a combination according to section 123A.37,
18.3subdivision 2 , must be paid off within 20 years of issuance. All the other provisions and
18.4limitation of paragraph (d) apply.
18.5EFFECTIVE DATE.This section is effective the day following final enactment.

18.6    Sec. 13. Minnesota Statutes 2006, section 124D.04, subdivision 3, is amended to read:
18.7    Subd. 3. Pupils in adjoining states. Except as provided under an agreement with
18.8an adjoining state under section 124D.041, a non-Minnesota pupil who resides in an
18.9adjoining state in a district that borders Minnesota may enroll in a Minnesota district if
18.10either the board of the district in which the pupil resides or state in which the pupil resides
18.11pays tuition to the district in which the pupil is enrolled.

18.12    Sec. 14. Minnesota Statutes 2006, section 124D.04, subdivision 6, is amended to read:
18.13    Subd. 6. Tuition payments. (a) In each odd-numbered year, before March 1, the
18.14commissioner must agree to rates of tuition for Minnesota elementary and secondary
18.15pupils attending in other states for the next two fiscal years when the other state agrees to
18.16negotiate tuition rates. The commissioner must negotiate equal, reciprocal rates with the
18.17designated authority in each state for pupils who reside in an adjoining state and enroll in
18.18a Minnesota district. The rates must be at least equal to the tuition specified in section
18.19124D.05, subdivision 1 . If the other state does not agree to negotiate a general tuition rate,
18.20a Minnesota school district may negotiate a tuition rate with the school district in the other
18.21state that sends a pupil to or receives a pupil from the Minnesota school district. The
18.22tuition rate for a pupil with a disability must be equal to the actual cost of instruction and
18.23services provided. The resident district of a Minnesota pupil attending in another state
18.24under this section must pay the amount of tuition agreed upon in this section to the district
18.25of attendance, prorated on the basis of the proportion of the school year attended.
18.26    (b) Notwithstanding paragraph (a) and subdivision 9, if an agreement is reached
18.27between the state of Minnesota and an adjoining state pursuant to section 124D.041,
18.28the provisions of section 124D.041 and the agreement shall apply to all enrollment
18.29transfers between Minnesota and the adjoining state, and provisions of paragraph (a)
18.30and subdivision 9 shall not apply.

18.31    Sec. 15. Minnesota Statutes 2006, section 124D.04, subdivision 8, is amended to read:
18.32    Subd. 8. Effective if reciprocal. This section is effective with respect to South
18.33Dakota upon enactment of provisions by South Dakota that the commissioner determines
19.1are essentially similar to the provisions for Minnesota pupils in this section. This section
19.2is effective with respect to any other bordering state upon enactment of provisions by the
19.3bordering state that the commissioner determines are essentially similar to the provisions
19.4for Minnesota pupils in this section.

19.5    Sec. 16. Minnesota Statutes 2006, section 124D.04, subdivision 9, is amended to read:
19.6    Subd. 9. Appeal to the commissioner. If a Minnesota school district cannot agree
19.7with an adjoining state on a tuition rate for a Minnesota student attending school in that
19.8state and that state has met the requirements in subdivision 8, then the student's parent or
19.9guardian may request that the commissioner agree on set a tuition rate for the student. The
19.10Minnesota district must pay the amount of tuition the commissioner agrees upon sets.

19.11    Sec. 17. [124D.041] RECIPROCITY WITH ADJOINING STATES.
19.12    Subdivision 1. Agreements. (a) The commissioner may enter into an agreement
19.13with the designated authority from an adjoining state to establish an enrollment options
19.14program between Minnesota and the adjoining state. Any agreement entered into pursuant
19.15to this section must specify the following:
19.16    (1) for students who are not residents of Minnesota, the enrollment options program
19.17applies only to a student whose resident school district borders Minnesota;
19.18    (2) the commissioner must negotiate equal, reciprocal rates with the designated
19.19authority from the adjoining state;
19.20    (3) if the adjoining state sends more students to Minnesota than Minnesota sends to
19.21the adjoining state, the adjoining state must pay the state of Minnesota the rate agreed
19.22upon under clause (2) for the excess number of students sent to Minnesota;
19.23    (4) if Minnesota sends more students to the adjoining state than the adjoining state
19.24sends to Minnesota, the state of Minnesota will pay the adjoining state the rate agreed
19.25upon under clause (2) for the excess number of students sent to the adjoining state;
19.26    (5) the application procedures for the enrollment options program between
19.27Minnesota and the adjoining state;
19.28    (6) the reasons for which an application for the enrollment options program between
19.29Minnesota and the adjoining may be denied; and
19.30    (7) that a Minnesota school district is not responsible for transportation for any
19.31resident student attending school in an adjoining state under the provisions of this section.
19.32A Minnesota school district may, at its discretion, provide transportation services for
19.33such a student.
20.1    (b) Any agreement entered into pursuant to this section may specify additional terms
20.2relating to any student in need of special education and related services pursuant to chapter
20.3125A. Any additional terms must apply equally to both states.
20.4    Subd. 2. Pupil accounting. (a) Any student from an adjoining state enrolled in
20.5Minnesota pursuant to this section is included in the receiving school district's average
20.6daily membership and pupil units according to section 126C.05 as if the student were
20.7a resident of another Minnesota school district attending the receiving school district
20.8under section 124D.03.
20.9    (b) Any Minnesota resident student enrolled in an adjoining state pursuant to this
20.10section is included in the resident school district's average daily membership and pupil
20.11units according to section 126C.05 as if the student were a resident of the district attending
20.12another Minnesota school district under section 124D.03.
20.13    Subd. 3. Procedures. (a) The Department of Education must establish procedures
20.14relating to the application process, the collection or payment of funds under the provisions
20.15of any agreement established pursuant to this section, and the collection of data necessary
20.16to implement any agreement established pursuant to this section.
20.17    (b) Notwithstanding sections 124D.04 and 124D.05, if an agreement is established
20.18between Minnesota and an adjoining state pursuant to this section, the provisions of this
20.19section and the agreement shall apply to all enrollment transfers between Minnesota and
20.20the adjoining state, and provisions of sections 124D.04 and 124D.05 to the contrary,
20.21including provisions relating to tuition payments, shall not apply.
20.22    (c) Notwithstanding paragraph (a), any payments to adjoining states under this
20.23section shall be made according to section 127A.45, subdivision 16.
20.24    (d) Notwithstanding paragraph (b), sections 124D.04, subdivision 6, paragraph (b),
20.25and 124D.05, subdivision 2a, the provisions of this section and the agreement shall not
20.26apply to enrollment transfers between Minnesota and a school district in an adjoining state
20.27enrolling fewer than 150 pupils that is exempted from participation in the program under
20.28the laws of the adjoining state.

20.29    Sec. 18. Minnesota Statutes 2006, section 124D.05, is amended by adding a
20.30subdivision to read:
20.31    Subd. 2a. Exception. Notwithstanding subdivisions 1 and 2, if an agreement
20.32is reached between the state of Minnesota and an adjoining state pursuant to section
20.33124D.041, the provisions of section 124D.041 and the agreement shall apply to all
20.34enrollment transfers between Minnesota and the adjoining state, and provisions of
21.1subdivisions 1 and 2 to the contrary, including provisions relating to tuition payments,
21.2shall not apply.

21.3    Sec. 19. Minnesota Statutes 2006, section 124D.10, subdivision 20, is amended to read:
21.4    Subd. 20. Leave to teach in a charter school. If a teacher employed by a district
21.5makes a written request for an extended leave of absence to teach at a charter school,
21.6the district must grant the leave. The district must grant a leave not to exceed a total of
21.7five years. Any request to extend the leave shall be granted only at the discretion of the
21.8school board. The district may require that the request for a leave or extension of leave
21.9be made up to 90 days before the teacher would otherwise have to report for duty before
21.10February 1 in the school year preceding the school year in which the teacher wishes to
21.11return, or before February 1 of the calendar year in which the teacher's leave is scheduled
21.12to terminate. Except as otherwise provided in this subdivision and except for section
21.13122A.46, subdivision 7 , the leave is governed by section 122A.46, including, but not
21.14limited to, reinstatement, notice of intention to return, seniority, salary, and insurance.
21.15    During a leave, the teacher may continue to aggregate benefits and credits in the
21.16Teachers' Retirement Association account by paying both the employer and employee
21.17contributions based upon the annual salary of the teacher for the last full pay period before
21.18the leave began. The retirement association may impose reasonable requirements to
21.19efficiently administer this subdivision.
21.20EFFECTIVE DATE.This section is effective for the 2008-2009 school year and
21.21later.

21.22    Sec. 20. Minnesota Statutes 2007 Supplement, section 124D.531, subdivision 1,
21.23is amended to read:
21.24    Subdivision 1. State total adult basic education aid. (a) The state total adult basic
21.25education aid for fiscal year 2005 is $36,509,000. The state total adult basic education
21.26aid for fiscal year 2006 equals $36,587,000 plus any amount that is not paid for during
21.27the previous fiscal year, as a result of adjustments under subdivision 4, paragraph (a), or
21.28section 124D.52, subdivision 3. The state total adult basic education aid for fiscal year
21.292007 equals $37,673,000 plus any amount that is not paid for during the previous fiscal
21.30year, as a result of adjustments under subdivision 4, paragraph (a), or section 124D.52,
21.31subdivision 3 . The state total adult basic education aid for fiscal year 2008 equals
21.32$40,650,000, plus any amount that is not paid during the previous fiscal year as a result of
21.33adjustments under subdivision 4, paragraph (a), or section 124D.52, subdivision 3. The
21.34state total adult basic education aid for later fiscal years equals:
22.1    (1) the state total adult basic education aid for the preceding fiscal year plus any
22.2amount that is not paid for during the previous fiscal year, as a result of adjustments under
22.3subdivision 4, paragraph (a), or section 124D.52, subdivision 3; times
22.4    (2) the lesser of:
22.5    (i) 1.03; or
22.6    (ii) the greater of 1.00 or the ratio of the state total contact hours in the first prior
22.7program year to the state total contact hours in the second prior program year the average
22.8growth in state total contact hours over the prior ten program years.
22.9    Beginning in fiscal year 2002, two percent of the state total adult basic education
22.10aid must be set aside for adult basic education supplemental service grants under section
22.11124D.522 .
22.12    (b) The state total adult basic education aid, excluding basic population aid, equals
22.13the difference between the amount computed in paragraph (a), and the state total basic
22.14population aid under subdivision 2.

22.15    Sec. 21. Minnesota Statutes 2006, section 124D.55, is amended to read:
22.16124D.55 GENERAL EDUCATION DEVELOPMENT (GED) TEST FEES.
22.17    The commissioner shall pay 60 percent of the fee that is charged to an eligible
22.18individual for the full battery of a general education development (GED) test, but not
22.19more than $20 $40 for an eligible individual.

22.20    Sec. 22. Minnesota Statutes 2006, section 125A.65, is amended by adding a
22.21subdivision to read:
22.22    Subd. 11. Third-party reimbursement. The Minnesota State Academies must seek
22.23reimbursement under section 125A.21 from third parties for the cost of services provided
22.24by the Minnesota State Academies whenever the services provided are otherwise covered
22.25by a child's public or private health plan.
22.26EFFECTIVE DATE.This section is effective the day following final enactment
22.27for revenue in fiscal years 2008 and later.

22.28    Sec. 23. Minnesota Statutes 2006, section 125A.76, is amended by adding a
22.29subdivision to read:
22.30    Subd. 4a. Adjustments for tuition reciprocity with adjoining states. (a) If an
22.31agreement is reached between the state of Minnesota and an adjoining state pursuant to
22.32section 124D.041 that requires a special education tuition payment from the state of
23.1Minnesota to the adjoining state, the tuition payment shall be made from the special
23.2education aid appropriation for that year, and the state total special education aid under
23.3subdivision 4 shall be reduced by the amount of the payment.
23.4    (b) If an agreement is reached between the state of Minnesota and an adjoining state
23.5pursuant to section 124D.041 that requires a special education tuition payment from
23.6an adjoining state to the state of Minnesota, the special education aid appropriation for
23.7that year and the state total special education aid under subdivision 4 shall be increased
23.8by the amount of the payment.
23.9    (c) If an agreement is reached between the state of Minnesota and an adjoining state
23.10pursuant to section 124D.041 that requires special education tuition payments to be made
23.11between the two states and not between districts in the two states, the special education aid
23.12for a Minnesota school district serving a student with a disability from the adjoining state
23.13shall be calculated according to section 127A.47, subdivision 7, except that no reduction
23.14shall be made in the special education aid paid to the resident district.

23.15    Sec. 24. Minnesota Statutes 2006, section 126C.10, subdivision 31, is amended to read:
23.16    Subd. 31. Transition revenue. (a) A district's transition allowance equals the
23.17greater of zero or the product of the ratio of the number of adjusted marginal cost pupil
23.18units the district would have counted for fiscal year 2004 under Minnesota Statutes 2002
23.19to the district's adjusted marginal cost pupil units for fiscal year 2004, times the difference
23.20between: (1) the lesser of the district's general education revenue per adjusted marginal
23.21cost pupil unit for fiscal year 2003 or the amount of general education revenue the district
23.22would have received per adjusted marginal cost pupil unit for fiscal year 2004 according
23.23to Minnesota Statutes 2002, and (2) the district's general education revenue for fiscal year
23.242004 excluding transition revenue divided by the number of adjusted marginal cost pupil
23.25units the district would have counted for fiscal year 2004 under Minnesota Statutes 2002.
23.26    (b) A district's transition revenue for fiscal year years 2006 and later through 2009
23.27equals the sum of the product of the district's transition allowance times the district's
23.28adjusted marginal cost pupil units plus the district's transition for prekindergarten revenue
23.29under subdivision 31a.
23.30    (c) A district's transition revenue for fiscal year 2010 and later equals the sum of
23.31the product of the district's transition allowance times the district's adjusted marginal cost
23.32pupil units plus the district's transition for prekindergarten revenue under subdivision 31a
23.33plus the district's transition for tuition reciprocity revenue under subdivision 31c.

24.1    Sec. 25. Minnesota Statutes 2006, section 126C.10, is amended by adding a
24.2subdivision to read:
24.3    Subd. 31c. Transition for tuition reciprocity revenue. For the first year that a
24.4tuition reciprocity agreement with an adjoining state is in effect under section 124D.041
24.5and later, a school district's transition for tuition reciprocity revenue equals the greater of
24.6zero or the difference between the sum of the general education revenue and net tuition
24.7revenue the district would have received for pupils enrolled under section 124D.041 for
24.8the first year the agreement is in effect if the agreement had not been in effect, and the
24.9sum of the district's general education revenue and net tuition revenue for the first year
24.10the agreement is in effect.

24.11    Sec. 26. Minnesota Statutes 2006, section 126C.17, subdivision 9, is amended to read:
24.12    Subd. 9. Referendum revenue. (a) The revenue authorized by section 126C.10,
24.13subdivision 1 , may be increased in the amount approved by the voters of the district at a
24.14referendum called for the purpose. The referendum may be called by the board or shall be
24.15called by the board upon written petition of qualified voters of the district. The referendum
24.16must be conducted one or two calendar years before the increased levy authority, if
24.17approved, first becomes payable. Only one election to approve an increase may be held
24.18in a calendar year. Unless the referendum is conducted by mail under paragraph (g), the
24.19referendum must be held on the first Tuesday after the first Monday in November. The
24.20ballot must state the maximum amount of the increased revenue per resident marginal cost
24.21pupil unit. The ballot may state a schedule, determined by the board, of increased revenue
24.22per resident marginal cost pupil unit that differs from year to year over the number of
24.23years for which the increased revenue is authorized or may state that the amount shall
24.24increase annually by the rate of inflation. For this purpose, the rate of inflation shall be the
24.25annual inflationary increase calculated under subdivision 2, paragraph (b). The ballot may
24.26state that existing referendum levy authority is expiring. In this case, the ballot may also
24.27compare the proposed levy authority to the existing expiring levy authority, and express
24.28the proposed increase as the amount, if any, over the expiring referendum levy authority.
24.29The ballot must designate the specific number of years, not to exceed ten, for which the
24.30referendum authorization applies. The ballot, including a ballot on the question to revoke
24.31or reduce the increased revenue amount under paragraph (c), must abbreviate the term
24.32"per resident marginal cost pupil unit" as "per pupil." The notice required under section
24.33275.60 may be modified to read, in cases of renewing existing levies:
24.34"BY VOTING "YES" ON THIS BALLOT QUESTION, YOU MAY BE VOTING
24.35FOR A PROPERTY TAX INCREASE ARE RENEWING AN EXISTING
25.1PROPERTY TAX REFERENDUM. YOU ARE NOT CHANGING YOUR
25.2OPERATING REFERENDUM FROM ITS LEVEL IN THE PREVIOUS YEAR."
25.3    The ballot may contain a textual portion with the information required in this
25.4subdivision and a question stating substantially the following:
25.5    "Shall the increase in the revenue proposed by (petition to) the board of .........,
25.6School District No. .., be approved?"
25.7    If approved, an amount equal to the approved revenue per resident marginal cost
25.8pupil unit times the resident marginal cost pupil units for the school year beginning in
25.9the year after the levy is certified shall be authorized for certification for the number of
25.10years approved, if applicable, or until revoked or reduced by the voters of the district at a
25.11subsequent referendum.
25.12    (b) The board must prepare and deliver by first class mail at least 15 days but no more
25.13than 30 days before the day of the referendum to each taxpayer a notice of the referendum
25.14and the proposed revenue increase. The board need not mail more than one notice to any
25.15taxpayer. For the purpose of giving mailed notice under this subdivision, owners must be
25.16those shown to be owners on the records of the county auditor or, in any county where
25.17tax statements are mailed by the county treasurer, on the records of the county treasurer.
25.18Every property owner whose name does not appear on the records of the county auditor
25.19or the county treasurer is deemed to have waived this mailed notice unless the owner
25.20has requested in writing that the county auditor or county treasurer, as the case may be,
25.21include the name on the records for this purpose. The notice must project the anticipated
25.22amount of tax increase in annual dollars for typical residential homesteads, agricultural
25.23homesteads, apartments, and commercial-industrial property within the school district.
25.24    The notice for a referendum may state that an existing referendum levy is expiring
25.25and project the anticipated amount of increase over the existing referendum levy in
25.26the first year, if any, in annual dollars for typical residential homesteads, agricultural
25.27homesteads, apartments, and commercial-industrial property within the district.
25.28    The notice must include the following statement: "Passage of this referendum will
25.29result in an increase in your property taxes." However, in cases of renewing existing
25.30levies, the notice may include the following statement: "Passage of this referendum may
25.31result in an increase a change in your property taxes."
25.32    (c) A referendum on the question of revoking or reducing the increased revenue
25.33amount authorized pursuant to paragraph (a) may be called by the board and shall be called
25.34by the board upon the written petition of qualified voters of the district. A referendum to
25.35revoke or reduce the revenue amount must state the amount per resident marginal cost
25.36pupil unit by which the authority is to be reduced. Revenue authority approved by the
26.1voters of the district pursuant to paragraph (a) must be available to the school district at
26.2least once before it is subject to a referendum on its revocation or reduction for subsequent
26.3years. Only one revocation or reduction referendum may be held to revoke or reduce
26.4referendum revenue for any specific year and for years thereafter.
26.5    (d) A petition authorized by paragraph (a) or (c) is effective if signed by a number of
26.6qualified voters in excess of 15 percent of the registered voters of the district on the day
26.7the petition is filed with the board. A referendum invoked by petition must be held on the
26.8date specified in paragraph (a).
26.9    (e) The approval of 50 percent plus one of those voting on the question is required to
26.10pass a referendum authorized by this subdivision.
26.11    (f) At least 15 days before the day of the referendum, the district must submit a
26.12copy of the notice required under paragraph (b) to the commissioner and to the county
26.13auditor of each county in which the district is located. Within 15 days after the results
26.14of the referendum have been certified by the board, or in the case of a recount, the
26.15certification of the results of the recount by the canvassing board, the district must notify
26.16the commissioner of the results of the referendum.
26.17EFFECTIVE DATE.This section is effective for elections conducted on or after
26.18July 1, 2008.

26.19    Sec. 27. Minnesota Statutes 2006, section 126C.21, subdivision 1, is amended to read:
26.20    Subdivision 1. Permanent school fund. The An amount of money equal to $36
26.21times the district's pupils in average daily membership received by a district as income
26.22from the permanent school fund for any year must be deducted from the general education
26.23aid earned by the district for the same year or from aid earned from other state sources.
26.24EFFECTIVE DATE.This section is effective for revenue for fiscal year 2010.

26.25    Sec. 28. Minnesota Statutes 2007 Supplement, section 126C.21, subdivision 3, is
26.26amended to read:
26.27    Subd. 3. County apportionment deduction. Each year the amount of money
26.28apportioned to a district for that year pursuant to sections section 127A.34, subdivision 2,
26.29and 272.029, subdivision 6, must be deducted from the general education aid earned by
26.30that district for the same year or from aid earned from other state sources.
26.31EFFECTIVE DATE.This section is effective for revenue for fiscal year 2009.

27.1    Sec. 29. Minnesota Statutes 2007 Supplement, section 126C.44, is amended to read:
27.2126C.44 SAFE SCHOOLS LEVY.
27.3    (a) Each district may make a levy on all taxable property located within the district
27.4for the purposes specified in this section. The maximum amount which may be levied
27.5for all costs under this section shall be equal to $30 multiplied by the district's adjusted
27.6marginal cost pupil units for the school year. The proceeds of the levy must be reserved and
27.7used for directly funding the following purposes or for reimbursing the cities and counties
27.8who contract with the district for the following purposes: (1) to pay the costs incurred for
27.9the salaries, benefits, and transportation costs of peace officers and sheriffs for liaison in
27.10services in the district's schools; (2) to pay the costs for a drug abuse prevention program
27.11as defined in section 609.101, subdivision 3, paragraph (e), in the elementary schools;
27.12(3) to pay the costs for a gang resistance education training curriculum in the district's
27.13schools; (4) to pay the costs for security in the district's schools and on school property; (5)
27.14to pay the costs for other crime prevention, drug abuse, student and staff safety, voluntary
27.15opt-in suicide prevention tools, and violence prevention measures taken by the school
27.16district; or (6) to pay costs for licensed school counselors, licensed school nurses, licensed
27.17school social workers, licensed school psychologists, and licensed alcohol and chemical
27.18dependency counselors to help provide early responses to problems. For expenditures
27.19under clause (1), the district must initially attempt to contract for services to be provided
27.20by peace officers or sheriffs with the police department of each city or the sheriff's
27.21department of the county within the district containing the school receiving the services. If
27.22a local police department or a county sheriff's department does not wish to provide the
27.23necessary services, the district may contract for these services with any other police or
27.24sheriff's department located entirely or partially within the school district's boundaries.
27.25    (b) A school district that is a member of an intermediate school district may
27.26include in its authority under this section the costs associated with safe schools activities
27.27authorized under paragraph (a) for intermediate school district programs. This authority
27.28must not exceed $10 times the adjusted marginal cost pupil units of the member districts.
27.29This authority is in addition to any other authority authorized under this section. Revenue
27.30raised under this paragraph must be transferred to the intermediate school district.
27.31    (c) If A school district spends must set aside at least $3 per adjusted marginal cost
27.32pupil unit of the safe schools levy proceeds for the purposes authorized under paragraph
27.33(a), clause (6),. The district must annually certify that its total spending on services
27.34provided by the employees listed in paragraph (a), clause (6), is not less than the sum of
27.35its expenditures for these purposes, excluding amounts spent under this section, in the
27.36previous year plus the amount spent under this section.
28.1EFFECTIVE DATE.This section is effective for revenue for fiscal year 2010.

28.2    Sec. 30. Minnesota Statutes 2006, section 126C.51, is amended to read:
28.3126C.51 APPLICATION OF LIMITING TAX LEGISLATION.
28.4    Notwithstanding the provisions of section 471.69 or 471.75, or of any other
28.5provision of law which by per capita limitation, local tax rate limitation, or otherwise,
28.6limits the power of a district to incur any debt or to issue any warrant or order, a school
28.7district or intermediate school district has the powers in sections 126C.50 to 126C.56
28.8specifically conferred upon it and all powers incident and necessary to carrying out the
28.9purposes of sections 126C.50 to 126C.56.
28.10EFFECTIVE DATE.This section is effective the day following final enactment.

28.11    Sec. 31. Minnesota Statutes 2006, section 126C.52, subdivision 2, is amended to read:
28.12    Subd. 2. Limitations. The board of any school district may also borrow money
28.13in the manner and subject to the limitations set forth in sections 126C.50 to 126C.56 in
28.14anticipation of receipt of state aids for schools as defined in Minnesota Statutes and of
28.15federal school aids to be distributed by or through the department. The aggregate of such
28.16borrowings under this subdivision shall never exceed 75 percent of such aids which are
28.17receivable by said school district in the school fiscal year (from July 1 to June 30) in which
28.18the money is borrowed, as estimated and certified by the commissioner.
28.19EFFECTIVE DATE.This section is effective the day following final enactment.

28.20    Sec. 32. Minnesota Statutes 2006, section 126C.52, is amended by adding a
28.21subdivision to read:
28.22    Subd. 3. Intermediate school districts. (a) The board of an intermediate school
28.23district may borrow money in the manner and subject to the limitations set forth in
28.24sections 126C.50 to 126C.56 in anticipation of the receipt of:
28.25    (1) state aids for schools as defined in Minnesota Statutes;
28.26    (2) federal school aids to be distributed by or through the department; and
28.27    (3) membership fees and tuition payments from its member school districts.
28.28    The aggregate of such borrowings under this subdivision shall never exceed 75
28.29percent of such aids, fees, and tuition payments which are receivable by the intermediate
28.30school district in the fiscal year in which the money is borrowed, as estimated and certified
28.31by the commissioner.
29.1    (b) The board of an intermediate school district may, upon receipt of a written
29.2resolution by each of its member school districts, pledge the member district's full faith
29.3and credit and unlimited taxing powers to repay its pro rata share of any certificates issued
29.4or the amount paid by the state under section 126C.55, subdivision 2, plus interest, if the
29.5revenues specified in paragraph (a) and any other revenues of the intermediate school
29.6district are insufficient to do so.
29.7EFFECTIVE DATE.This section is effective the day following final enactment.

29.8    Sec. 33. Minnesota Statutes 2006, section 126C.53, is amended to read:
29.9126C.53 ENABLING RESOLUTION; FORM OF CERTIFICATES OF
29.10INDEBTEDNESS.
29.11    The board of a school district or intermediate school district may authorize and
29.12effect such borrowing, and may issue such certificates of indebtedness upon passage of
29.13a resolution specifying the amount and purposes for which it deems such borrowing is
29.14necessary. The resolution must be adopted by a vote of at least two-thirds of its members.
29.15The board must fix the amount, date, maturity, form, denomination, and other details of
29.16the certificates of indebtedness, not inconsistent with this chapter. The board must fix the
29.17date and place for receipt of bids for the purchase of the certificates when bids are required
29.18and direct the clerk to give notice of the date and place for bidding.
29.19EFFECTIVE DATE.This section is effective the day following final enactment.

29.20    Sec. 34. Minnesota Statutes 2006, section 126C.55, is amended to read:
29.21126C.55 STATE PAYMENT OF DEBT OBLIGATION UPON POTENTIAL
29.22DEFAULT; REPAYMENT; STATE OBLIGATION NOT DEBT.
29.23    Subdivision 1. Definitions. For the purposes of this section, the term "debt
29.24obligation" means:
29.25    (1) a tax or aid anticipation certificate of indebtedness issued under section 126C.52;
29.26    (2) a certificate of participation issued under section 126C.40, subdivision 6; or
29.27    (3) a general obligation bond.
29.28    Subd. 2. Notifications; payment; appropriation. (a) If a school district or
29.29intermediate school district believes that it may be unable to make a principal or interest
29.30payment on any outstanding debt obligation on the date that payment is due, it must
29.31notify the commissioner as soon as possible, but not less than 15 working days before the
29.32date that principal or interest payment is due. The notice must include the name of the
29.33school district or intermediate school district, an identification of the debt obligation issue
30.1in question, the date the payment is due, the amount of principal and interest due on the
30.2payment date, the amount of principal or interest that the school district or intermediate
30.3school district will be unable to repay on that date, the paying agent for the debt obligation,
30.4the wire transfer instructions to transfer funds to that paying agent, and an indication as to
30.5whether a payment is being requested by the school district or intermediate school district
30.6under this section. If a paying agent becomes aware of a potential default, it shall inform
30.7the commissioner of that fact. After receipt of a notice which requests a payment under
30.8this section, after consultation with the school district or intermediate school district and
30.9the paying agent, and after verification of the accuracy of the information provided, the
30.10commissioner shall notify the commissioner of finance of the potential default. The notice
30.11must include a final figure as to the amount due that the school district or intermediate
30.12school district will be unable to repay on the date due.
30.13    (b) Except as provided in subdivision 9, upon receipt of this notice from the
30.14commissioner, the commissioner of finance shall issue a warrant and authorize the
30.15commissioner of education to pay to the paying agent for the debt obligation the specified
30.16amount on or before the date due. The amounts needed for the purposes of this subdivision
30.17are annually appropriated to the department from the state general fund.
30.18    (c) The Departments of Education and Finance must jointly develop detailed
30.19procedures for school districts and intermediate school districts to notify the state that
30.20they have obligated themselves to be bound by the provisions of this section, procedures
30.21for school districts or intermediate school districts and paying agents to notify the state
30.22of potential defaults and to request state payment under this section, and procedures
30.23for the state to expedite payments to prevent defaults. The procedures are not subject
30.24to chapter 14.
30.25    Subd. 3. School district bound; interest rate on state paid amount. If, at the
30.26request of a school district or intermediate school district, the state has paid part or all of
30.27the principal or interest due on a district's debt obligation on a specific date, the school
30.28district or the intermediate school district is bound by all provisions of this section and the
30.29amount paid shall bear taxable interest from the date paid until the date of repayment at
30.30the invested cash rate as it is certified by the commissioner of finance. Interest shall only
30.31accrue on the amounts paid and outstanding less the reduction in aid under subdivision 4
30.32and other payments received from the school district or intermediate school district.
30.33    Subd. 4. Pledge of district's full faith and credit. If, at the request of a school
30.34district or intermediate school district, the state has paid part or all of the principal or
30.35interest due on a district's debt obligation on a specific date, the pledge of the full faith
30.36and credit and unlimited taxing powers of the school district or the intermediate school
31.1district to repay the principal and interest due on those debt obligations shall also, without
31.2an election or the requirement of a further authorization, become a pledge of the full faith
31.3and credit and unlimited taxing powers of the school district or the intermediate school
31.4district to repay to the state the amount paid, with interest. Amounts paid by the state must
31.5be repaid in the order in which the state payments were made.
31.6    Subd. 4a. Aid reduction for repayment. (a) Except as provided in this subdivision,
31.7the state must reduce the state aid payable to the school district or intermediate school
31.8district under this chapter and chapters 122A, 123A, 123B, 124D, 125A, 126C, and 273
31.9by the amount paid by the state under this section on behalf of the district, plus the interest
31.10due on it, and the amount reduced must revert from the appropriate account to the state
31.11general fund. Payments from the school district endowment fund or any federal aid
31.12payments shall not be reduced.
31.13    (b) For an intermediate school district, the state aid payable to the intermediate
31.14school district must first be reduced, before any reduction is made to the state aids payable
31.15to the member districts. If the state aid payable to the intermediate school district is
31.16not sufficient to repay the state, state aid payable to member districts may be reduced
31.17proportionately based on the ratio of each member district's adjusted net tax capacity to
31.18the total adjusted net tax capacity of all member districts.
31.19    (c) If, after review of the financial situation of the school district or intermediate
31.20school district, the commissioner advises the commissioner of finance that a total reduction
31.21of aids would cause an undue hardship on or an undue disruption of the educational
31.22program of the district, the commissioner, with the approval of the commissioner of
31.23finance, may establish a different schedule for reduction of aids to repay the state. The
31.24amount of aids to be reduced is decreased by any amounts repaid to the state by the district
31.25from other revenue sources.
31.26    Subd. 6. Tax levy for repayment. (a) With the approval of the commissioner, a
31.27district may levy in the year the state makes a payment under this section an amount up to
31.28the amount necessary to provide funds for the repayment of the amount paid by the state
31.29plus interest through the date of estimated repayment by the district. The proceeds of this
31.30levy may be used only for this purpose unless they are in excess of the amount actually
31.31due, in which case the excess shall be used to repay other state payments made under this
31.32section or shall be deposited in the debt redemption fund of the school district. This levy
31.33shall be an increase in the levy limits of the district for purposes of section 275.065,
31.34subdivision 6 . The amount of aids to be reduced to repay the state shall be decreased by
31.35the amount levied. This levy by the district is not eligible for debt service equalization
31.36under section 123B.53.
32.1    (b) If the state is not repaid in full for a payment made under this section by
32.2November 30 of the calendar year following the year in which the state makes the
32.3payment, the commissioner shall require the district to certify a property tax levy in an
32.4amount up to the amount necessary to provide funds for repayment of the amount paid by
32.5the state plus interest through the date of estimated repayment by the school district. To
32.6prevent undue hardship, the commissioner may allow the district to certify the levy over a
32.7five-year period. The proceeds of the levy may be used only for this purpose unless they
32.8are in excess of the amount actually due, in which case the excess shall be used to repay
32.9other state payments made under this section or shall be deposited in the debt redemption
32.10fund of the district. This levy shall be an increase in the levy limits of the school district
32.11for purposes of section 275.065, subdivision 6. If the commissioner orders the district
32.12to levy, the amount of aids reduced to repay the state shall be decreased by the amount
32.13levied. This levy by the district is not eligible for debt service equalization under section
32.14123B.53 or any successor provision. A levy under this subdivision must be explained as a
32.15specific increase at the meeting required under section 275.065, subdivision 6.
32.16    (c) For an intermediate school district, a levy made by a member school district
32.17under paragraph (a) or (b) to repay its pro rata share must be spread by the commissioner
32.18as a tax rate based on the total adjusted net tax capacity of the member school districts. The
32.19proceeds of the levy must be remitted by the member school district to the intermediate
32.20school district and must be used by the intermediate school district only to repay the state
32.21amounts owed. Any amount in excess of the amount owed to the state must be repaid
32.22to the member school districts and the commissioner shall adjust each member school
32.23district's property tax levy in the next year.
32.24    Subd. 7. Election as to mandatory application. A school district or intermediate
32.25school district may covenant and obligate itself, prior to the issuance of an issue of debt
32.26obligations, to notify the commissioner of a potential default and to use the provisions of
32.27this section to guarantee payment of the principal and interest on those debt obligations
32.28when due. If the school district or intermediate school district obligates itself to be bound
32.29by this section, it must covenant in the resolution that authorizes the issuance of the debt
32.30obligations to deposit with the paying agent three business days prior to the date on which
32.31a payment is due an amount sufficient to make that payment or to notify the commissioner
32.32under subdivision 1 that it will be unable to make all or a portion of that payment. A school
32.33district or intermediate school district that has obligated itself must include a provision in
32.34its agreement with the paying agent for that issue that requires the paying agent to inform
32.35the commissioner if it becomes aware of a potential default in the payment of principal or
32.36interest on that issue or if, on the day two business days prior to the date a payment is due
33.1on that issue, there are insufficient funds to make the payment on deposit with the paying
33.2agent. Funds invested in a refunding escrow account established under section 475.67 that
33.3are to become available to the paying agent on a principal or interest payment date are
33.4deemed to be on deposit with the paying agent three business days before the payment
33.5date. If a school district or intermediate school district either covenants to be bound by
33.6this section or accepts state payments under this section to prevent a default of a particular
33.7issue of debt obligations, the provisions of this section shall be binding as to that issue
33.8as long as any debt obligation of that issue remain outstanding. If the provisions of this
33.9section are or become binding for more than one issue of debt obligations and a school
33.10district or intermediate school district is unable to make payments on one or more of those
33.11issues, the district must continue to make payments on the remaining issues.
33.12    Subd. 8. Mandatory plan; technical assistance. If the state makes payments
33.13on behalf of a school district or intermediate school district under this section or the
33.14district defaults in the payment of principal or interest on an outstanding debt obligation, it
33.15must submit a plan to the commissioner for approval specifying the measures it intends
33.16to implement to resolve the issues which led to its inability to make the payment and
33.17to prevent further defaults. The department must provide technical assistance to the
33.18school district or intermediate school district in preparing its plan. If the commissioner
33.19determines that a district's plan is not adequate, the commissioner shall notify the school
33.20district or intermediate school district that the plan has been disapproved, the reasons for
33.21the disapproval, and that the state shall not make future payments under this section for
33.22debt obligations issued after the date specified in that notice until its plan is approved.
33.23The commissioner may also notify the school district or intermediate school district that
33.24until its plan is approved, other aids due the district will be withheld after a date specified
33.25in the notice.
33.26    Subd. 9. State bond rating. If the commissioner of finance determines that the
33.27credit rating of the state would be adversely affected thereby, the commissioner of finance
33.28shall not issue warrants under subdivision 2 for the payment of principal or interest on any
33.29debt obligations for which a district did not, prior to their issuance, obligate itself to be
33.30bound by the provisions of this section.
33.31    Subd. 10. Continuing disclosure agreements. The commissioner of finance
33.32may enter into written agreements or contracts relating to the continuing disclosure of
33.33information needed to facilitate the ability of school districts or intermediate school
33.34districts to issue debt obligations according to federal securities laws, rules, and
33.35regulations, including securities and exchange commission rules and regulations, section
34.1240.15c2-12. Such agreements or contracts may be in any form the commissioner of
34.2finance deems reasonable and in the state's best interests.
34.3EFFECTIVE DATE.This section is effective the day following final enactment.

34.4    Sec. 35. [127A.331] SCHOOL ENDOWMENT FUND; USE OF REVENUE.
34.5    A school that receives school endowment fund revenue under section 127A.33
34.6in excess of $36 per pupil in average daily membership may use that revenue only for
34.7the following purposes:
34.8    (1) to purchase or lease computers and related materials, copying machines,
34.9telecommunications equipment, and other noninstructional equipment;
34.10    (2) to purchase or lease assistive technology or equipment for instructional programs;
34.11    (3) to purchase new and replacement library media resources or technology;
34.12    (4) to pay for ongoing or recurring telecommunications/Internet access costs
34.13associated with Internet access, data lines, and video links; and
34.14    (5) to pay for service provider installation fees for installation of new
34.15telecommunications lines or increased bandwidth.
34.16EFFECTIVE DATE.This section is effective for revenue for fiscal year 2010.

34.17    Sec. 36. Minnesota Statutes 2006, section 127A.45, subdivision 16, is amended to read:
34.18    Subd. 16. Payments to third parties. Notwithstanding subdivision 3, the current
34.19year aid payment percentage of the amounts under section 123A.26, subdivision 3 and
34.20section 124D.041, shall be paid in equal installments on August 30, December 30, and
34.21March 30, with a final adjustment payment on October 30 of the next fiscal year of the
34.22remaining amount.

34.23    Sec. 37. [145.986] STATEWIDE HEALTH IMPROVEMENT PROGRAM.
34.24    Subdivision 1. Goals. The initial goals of the public health improvement program
34.25are to reduce the percentage of Minnesotans who are obese or overweight to less than half
34.26by the year 2020 and to reduce tobacco smoking by two percent annually starting in 2011.
34.27By 2011, and considering available funding, the commissioner of health, in consultation
34.28with the State Community Health Advisory Committee established in section 145A.10,
34.29subdivision 10, and other stakeholders, may make recommendations as to future goals
34.30related to alcohol use and illegal drug use.
34.31    Subd. 2. Funding local communities. Beginning January 1, 2009, the
34.32commissioner of health must provide funding to community health boards to convene,
35.1coordinate, and lead locally developed programs targeted at achieving measurable health
35.2improvement goals. Funding to each community health board will be distributed based on
35.3a per capita formula, with a base allocation of $50,000 to each community health board
35.4that receives funding. By January 15, 2011, the commissioner of health must recommend
35.5whether additional funding should be distributed to community health boards based on
35.6health disparities demonstrated in the populations served.
35.7    Subd. 3. Outcomes. (a) The commissioner of health must set performance measures
35.8and annually review the progress of local communities in improving the performance
35.9measures. The commissioner may provide technical assistance and corrective action plans
35.10to ensure that local communities are making sufficient progress.
35.11    (b) The commissioner must measure current public health data, using existing
35.12measures and data collection systems when available, to determine baseline data against
35.13which progress shall be monitored.
35.14    Subd. 4. Media campaign. The commissioner of health must conduct a statewide
35.15marketing campaign using public media to reinforce local efforts at addressing health
35.16improvement goals. The commissioner must develop the statewide campaigns and
35.17determine the timing of these campaigns in consultation with local public health
35.18representatives.

35.19    Sec. 38. Laws 2007, chapter 146, article 2, section 46, subdivision 13, is amended to
35.20read:
35.21    Subd. 13. Preadvanced placement, advanced placement, international
35.22baccalaureate, and concurrent enrollment programs. For preadvanced placement,
35.23advanced placement, international baccalaureate, and concurrent enrollment programs
35.24under Minnesota Statutes, sections 120B.132 and 124D.091:

35.25		$	6,500,000	.....	2008
35.26		$	6,500,000	.....	2009

35.27    Of this amount, $2,500,000 each year is for concurrent enrollment program aid
35.28under Minnesota Statutes, section 124D.091. If the appropriation is insufficient, the
35.29commissioner must proportionately reduce the aid payment to each district. Any balance
35.30in the first year does not cancel but is available in the second year.
35.31    The base appropriation for fiscal year 2010 and later is $2,000,000.
35.32EFFECTIVE DATE.This section is effective the day following final enactment.

35.33    Sec. 39. Laws 2007, chapter 146, article 3, section 23, subdivision 2, is amended to
35.34read:
36.1    Subd. 2. Report. (a) The task force must submit to the education policy and finance
36.2committees of the legislature by February 15, 2008 2009, a report that identifies and
36.3clearly and concisely explains each provision in state law or rule that exceeds or expands
36.4upon a minimum federal requirement contained in law or regulation for providing special
36.5education programs and services to eligible students. The report also must recommend
36.6which state provisions statutes and rules that exceed or expand upon a minimum federal
36.7requirement may be amended to conform with minimum federal requirements or made
36.8more effective as determined by a majority of the task force members. The task force must
36.9recommend rules governing the use of aversive and deprivation procedures by school
36.10district employees or persons under contract with a school district. The task force expires
36.11when it submits its report to the legislature.
36.12    (b) Consistent with subdivision 1, the Department of Education member of the
36.13task force representing regulators shall be replaced with a parent advocate selected by a
36.14statewide organization that advocates on behalf of families with children with disabilities.
36.15    (c) The Department of Education must provide technical assistance at the request of
36.16the task force.
36.17EFFECTIVE DATE.This section is effective the day following final enactment.

36.18    Sec. 40. Laws 2007, chapter 146, article 3, section 24, subdivision 9, is amended to
36.19read:
36.20    Subd. 9. Special Education Task Force. For the task force to compare federal
36.21and state special education requirements:

36.22

$

20,000 40,000

.....

2008

36.23    Any balance in the first year does not cancel but is available in the second year.
36.24    This is a onetime appropriation.
36.25EFFECTIVE DATE.This section is effective the day following final enactment.

36.26    Sec. 41. Laws 2007, chapter 146, article 5, section 13, subdivision 5, is amended to
36.27read:
36.28    Subd. 5. Plainview-Elgin-Millville fund balance replacement aid.
36.29    For fund balance replacement aid for Independent School District No. 2899,
36.30Plainview-Elgin-Millville:

36.31

$

17,000 24,000

.....

2008

36.32    This is a onetime appropriation.
37.1EFFECTIVE DATE.This section is effective the day following final enactment.

37.2    Sec. 42. Laws 2007, chapter 146, article 7, section 4, is amended to read:
37.3    Sec. 4. APPROPRIATIONS; DEPARTMENT OF EDUCATION.
37.4    Subdivision 1. Department of Education. Unless otherwise indicated, the sums
37.5indicated in this section are appropriated from the general fund to the Department of
37.6Education for the fiscal years designated.
37.7    Subd. 2. Department. (a) For the Department of Education:

37.8		$	22,169,000	.....	2008
37.9 37.10		$	22,653,000 21,761,000	.....	2009

37.11    Any balance in the first year does not cancel but is available in the second year.
37.12    (b) $7,000 in fiscal year 2008 is for GRAD test rulemaking.
37.13    (c) $7,000 in fiscal year 2008 is for rulemaking under section 3.
37.14    (d) $40,000 each year is for an early hearing loss intervention coordinator under
37.15Minnesota Statutes, section 125A.63, subdivision 5. If the department expends federal
37.16funds to employ a hearing loss coordinator under Minnesota Statutes, section 125.63,
37.17subdivision 5 , then the appropriation under this paragraph is reallocated for purposes of
37.18employing a world languages coordinator.
37.19    (e) $260,000 each year is for the Minnesota Children's Museum.
37.20    (f) $41,000 each year is for the Minnesota Academy of Science.
37.21    (g) $619,000 in fiscal year 2008 and $632,000 in fiscal year 2009 are for the Board
37.22of Teaching.
37.23    (h) $163,000 in fiscal year 2008 and $171,000 in fiscal year 2009 are for the Board
37.24of School Administrators.
37.25    (i) $50,000 each year is for the Duluth Children's Museum.
37.26    (j) The expenditures of federal grants and aids as shown in the biennial budget
37.27document and its supplements are approved and appropriated and shall be spent as
37.28indicated.
37.29    (k) None of the amounts appropriated under this subdivision may be used for
37.30Minnesota's Washington, D.C., office.

37.31    Sec. 43. Laws 2007, First Special Session chapter 2, article 1, section 11, subdivision
37.321, is amended to read:

37.33

Subdivision 1. Total Appropriation

$

584,000 298,000

38.1The appropriations in this section are from
38.2the general fund. The amounts that may be
38.3spent for each purpose are specified in the
38.4following subdivisions.
38.5EFFECTIVE DATE.This section is effective the day following final enactment.

38.6    Sec. 44. Laws 2007, First Special Session chapter 2, article 1, section 11, subdivision
38.72, is amended to read:

38.8 38.9

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

38.10

(a) Flood Enrollment Impact Aid

89,000

38.11The commissioner of education shall pay to
38.12the school district flood enrollment impact
38.13aid equal to $5,394 times the number of
38.14pupils lost as a result of the floods of August
38.152007. The district must provide to the
38.16commissioner of education documentation
38.17of the number of pupils in average daily
38.18membership lost as a result of the flood.

38.19

(b) Disaster Relief Facilities Grant

250,000 150,000

38.20For facilities cleanup, repair, and replacement
38.21costs related to the floods of August 2007 not
38.22covered by the district's insurance settlement
38.23or through Federal Emergency Management
38.24Agency payments. The commissioner of
38.25education may request the school district
38.26to provide necessary information before
38.27awarding a grant.

38.28

(c) Pupil Transportation Aid

40,000

38.29For increased costs associated with
38.30transporting students as a result of the floods
38.31of August 2007.
38.32EFFECTIVE DATE.This section is effective the day following final enactment.

39.1    Sec. 45. Laws 2007, First Special Session chapter 2, article 1, section 11, subdivision
39.26, is amended to read:

39.3 39.4

Subd. 6. Disaster Relief Facilities Grants to Other Districts

90,00014,000

39.5For facilities cleanup, repair, and replacement
39.6costs related to the floods of August 2007 not
39.7covered by the district's insurance settlement
39.8or through Federal Emergency Management
39.9Agency payments. The commissioner of
39.10education may request the school district
39.11to provide necessary information before
39.12awarding a grant. School districts not
39.13included in subdivisions 2 to 5 must be given
39.14priority in the allocation of this appropriation.
39.15EFFECTIVE DATE.This section is effective the day following final enactment.

39.16    Sec. 46. FUND TRANSFERS.
39.17    Subdivision 1. Capital account transfers. Notwithstanding any law to the contrary,
39.18on June 30, 2008, a school district may transfer money from its reserved for operating
39.19capital account to its undesignated balance in the general fund. The amount transferred
39.20by any school district must not exceed $51 times the district's adjusted marginal cost
39.21pupil units for fiscal year 2007. This transfer may occur only after the school board has
39.22adopted a written resolution stating the amount of the transfer and declaring that the
39.23school district's operating capital needs are being met.
39.24    Subd. 2. Reserved for operating capital account transfer; Balaton school
39.25district. Notwithstanding Minnesota Statutes, section 123B.79 or 123B.80, or subdivision
39.261, on June 30, 2008, Independent School District No. 411, Balaton, may transfer up to
39.27$70,000 from its reserved for operating capital account to its undesignated general fund
39.28balance.
39.29    Subd. 3. Reserved for operating capital account transfer; East Central school
39.30district. Notwithstanding Minnesota Statutes, section 123B.79 or 123B.80, or subdivision
39.311, on June 30, 2008, Independent School District No. 2580, East Central, may transfer up
39.32to $300,000 from its reserved for operating capital account to its undesignated general
39.33fund balance.
39.34EFFECTIVE DATE.This section is effective the day following final enactment.

40.1    Sec. 47. ONETIME GENERAL EDUCATION REVENUE INCREASE; FISCAL
40.2YEAR 2009 ONLY.
40.3    A school district's general education revenue under Minnesota Statutes, section
40.4126C.10, is increased for fiscal year 2009 only by an amount equal to $51 times the
40.5district's adjusted marginal cost pupil units for that year.

40.6    Sec. 48. ALTERNATIVE TEACHER COMPENSATION AID.
40.7    A school district that has not applied for alternative teacher compensation aid under
40.8Minnesota Statutes, section 126C.10, subdivision 34, by March 20, 2008, is not eligible
40.9for aid under that subdivision for fiscal year 2009. Nothing in this section limits a district's
40.10eligibility for alternative teacher compensation aid in subsequent fiscal years.
40.11EFFECTIVE DATE.This section is effective the day following final enactment.

40.12    Sec. 49. IMPLEMENTING A STUDENT GROWTH-BASED VALUE-ADDED
40.13SYSTEM.
40.14    (a) To implement the requirements of Minnesota Statutes, section 120B.35,
40.15subdivision 3, paragraph (b), and to help parents and members of the public compare the
40.16reported data, the commissioner must convene a group of expert school district assessment
40.17and evaluation staff, including a recognized Minnesota assessment group composed
40.18of assessment and evaluation directors and staff and researchers under Minnesota
40.19Statutes, section 120B.299, subdivision 6, and interested stakeholders, including school
40.20superintendents, school principals, school teachers, and parents to examine the actual
40.21statewide performance of students using Minnesota's growth-based value-added system
40.22and establish criteria for identifying schools and school districts that demonstrate
40.23accelerated growth in order to advance educators' professional development and replicate
40.24programs that succeed in meeting students' diverse learning needs.
40.25    (b) The commissioner must submit a written report to the education committees of
40.26the house of representatives and senate by February 15, 2009, describing the criteria for
40.27identifying schools and school districts that demonstrate accelerated growth. The group
40.28convened under this section expires on June 30, 2009.
40.29EFFECTIVE DATE.This section is effective the day following final enactment
40.30and applies to school report cards in the 2008-2009 school year and later.

40.31    Sec. 50. IMPLEMENTING RIGOROUS COURSEWORK MEASURES
40.32RELATED TO STUDENT PERFORMANCE.
41.1    (a) To implement the requirements of Minnesota Statutes, section 120B.35,
41.2subdivision 3, paragraph (c), clauses (1) and (2), and to help parents and members of the
41.3public compare the reported data, the commissioner of education must convene a group of
41.4recognized and qualified experts and interested stakeholders, including parents among
41.5other stakeholders, to develop a model projecting anticipated performance of each high
41.6school on preparation and rigorous coursework measures that compares the school with
41.7similar schools. The model must use information about entering high school students
41.8based on particular background characteristics that are predictive of differing rates of
41.9college readiness. These characteristics include grade 8 achievement levels, high school
41.10student mobility, high school student attendance, and the size of each entering ninth grade
41.11class. The group of experts and stakeholders may examine other characteristics not part
41.12of the prediction model including the nine student categories identified under the federal
41.132001 No Child Left Behind Act, and two student gender categories of male and female,
41.14respectively. The commissioner annually must use the predicted level of entering students'
41.15performance to provide a context for interpreting graduating students' actual performance.
41.16The group convened under this section expires June 30, 2011.
41.17    (b) Consistent with paragraph (a), the commissioner also must propose an expanded
41.18high school student data system to report preparation and rigorous coursework measures
41.19and facilitate additional research on college readiness. This proposed data system must
41.20expect school districts and charter schools to report data to the state education department
41.21on each course a high school student takes and completes. The commissioner must link
41.22the course data file to the department's existing student reporting system. The proposed
41.23data system must enable the commissioner to prepare detailed reports, consistent with the
41.24requirements in Minnesota Statutes, section 120B.35, subdivision 3, paragraph (d), clauses
41.25(1) and (2), and support the development of a state P-16 longitudinal data system.
41.26EFFECTIVE DATE.This section is effective the day following final enactment
41.27and applies to school report cards beginning July 1, 2011.

41.28    Sec. 51. IMPLEMENTING MEASURES FOR ASSESSING STUDENTS'
41.29SELF-REPORTED SENSE OF SCHOOL SAFETY, ENGAGEMENT IN
41.30SCHOOL, AND THE QUALITY OF RELATIONSHIPS WITH TEACHERS,
41.31ADMINISTRATORS, AND OTHER STUDENTS.
41.32    (a) To implement the requirements of Minnesota Statutes, section 120B.35,
41.33subdivision 3, paragraph (d), and to help parents and members of the public compare the
41.34reported data, the commissioner of education, in consultation with interested stakeholders,
42.1including parents among other stakeholders, must convene a group of recognized and
42.2qualified experts to:
42.3    (1) analyze the University of Minnesota student safety and engagement survey
42.4instrument and other commonly recognized survey instruments to select the survey
42.5instrument that best meets state accountability requirements;
42.6    (2) ensure that the selected survey instrument has sound psychometric properties and
42.7is useful for intervention planning;
42.8    (3) determine at what grade levels to administer the survey instrument and ensure
42.9that the survey instrument can be used at those grade levels; and
42.10    (4) determine through disaggregated use of survey indicators or other means how to
42.11report "safety" in order to comply with federal law.
42.12    (b) The commissioner must submit a written report to the education committees of
42.13the house of representatives and senate by February 15, 2009, presenting the experts'
42.14responses to paragraph (a), clauses (1) to (4). The group convened under this section
42.15expires June 30, 2009.
42.16EFFECTIVE DATE.This section is effective the day following final enactment
42.17and applies to school report cards beginning July 1, 2011.

42.18    Sec. 52. GROWTH-BASED VALUE-ADDED SYSTEM.
42.19    The growth-based value-added system used by the commissioner of education to
42.20comply with Minnesota Statutes, section 120B.35, subdivision 3, paragraph (b), must
42.21be consistent with the growth-based value-added model contained in the document
42.22labeled "Educational Report Card Growth Model" developed in partnership with the
42.23Minnesota Department of Education. The document must be deposited with the
42.24Office of the Revisor of Statutes, the Legislative Reference Library, and the State Law
42.25Library, where the document shall be maintained until the commissioner implements the
42.26growth-based value-added system under Minnesota Statutes, section 120B.35, subdivision
42.273, paragraph (b). The recognized Minnesota assessment group composed of assessment
42.28and evaluation directors and staff and researchers under Minnesota Statutes, section
42.29120B.299, subdivision 6, must determine whether the growth-based value-added model
42.30the commissioner uses to comply with Minnesota Statutes, section 120B.35, subdivision
42.313, paragraph (b), is consistent with the deposited document and report its determination to
42.32the education committees of the house of representatives and senate by February 15, 2009.
42.33EFFECTIVE DATE.This section is effective the day following final enactment.

43.1    Sec. 53. EXPEDITED PROCESS; SPECIFIC LEARNING DISABILITIES
43.2RULE.
43.3    The commissioner of education may use the expedited process under Minnesota
43.4Statutes, section 14.389, to conform Minnesota Rules, part 3525.1341, to new federal
43.5requirements on specific learning disabilities under Public Law 108-446, sections 602(30)
43.6and 614(b)(6), the Individuals with Disabilities Education Improvement Act of 2004,
43.7and its implementing regulations.
43.8EFFECTIVE DATE.This section is effective the day following final enactment.

43.9    Sec. 54. SCHOOL START DATE; 2009-2010 AND 2010-2011 SCHOOL YEARS.
43.10    Notwithstanding Minnesota Statutes, section 120A.40, a school district may start an
43.11elementary or secondary school year beginning August 31 in the 2009-2010 school year
43.12and beginning August 30 in the 2010-2011 school year.
43.13EFFECTIVE DATE.This section is effective the day following final enactment.

43.14    Sec. 55. ENDING PARTICIPATION IN NO CHILD LEFT BEHIND.
43.15    The commissioner of education must nullify and revoke by August 1, 2009, the
43.16consolidated state plan that the state of Minnesota submitted to the federal Department
43.17of Education on implementing the No Child Left Behind Act of 2001, and any other
43.18Minnesota state contract or agreement entered into under the provisions of the No Child
43.19Left Behind Act of 2001.

43.20    Sec. 56. APPROPRIATIONS.
43.21    Subdivision 1. Department of Education. The sums indicated in this section are
43.22appropriated from the general fund, unless otherwise indicated, to the Department of
43.23Education for the fiscal years designated.
43.24    Subd. 2. Additional general education revenue. For additional general education
43.25aid according to section 43:

43.26

$

23,262,000

.....

2009

43.27    This appropriation is in addition to any other appropriation for this purpose.
43.28    This 2009 appropriation includes $0 for 2008 and $18,926,000 for 2009.
43.29    Subd. 3. Rushford-Peterson. For a grant to Independent School District No.
43.30239, Rushford-Peterson, for school district flood enrollment impact aid and aid for the
43.31increased costs of transporting students as a result of the floods of August 2007.

44.1

$

158,000

.....

2009

44.2    The base appropriation for fiscal year 2010 is $158,000. The base appropriation for
44.3later years is zero.
44.4    Subd. 4. Virginia. For a grant to Independent School District No. 701, Virginia, for
44.5emergency school facility repairs:

44.6

$

100,000

.....

2009

44.7    This is a onetime appropriation.
44.8    Subd. 5. Lancaster. For a grant to Independent School District No. 356, Lancaster,
44.9to replace the loss of sparsity revenue:

44.10

$

100,000

.....

2009

44.11    The base appropriation for fiscal years 2010 and 2011 is $100,000 per year. The
44.12base appropriation for later fiscal years is zero.
44.13    Subd. 6. Principal's Leadership Institute. For a grant to the Principal's Leadership
44.14Institute under Minnesota Statutes, section 122A.74:

44.15

$

400,000

.....

2009

44.16    The base appropriation for this program for fiscal year 2010 and later is $400,000.
44.17    Subd. 7. Board of Teaching; licensure by portfolio. For the Board of Teaching
44.18for licensure by portfolio:

44.19

$

17,000

.....

2009

44.20    This appropriation is from the educator licensure portfolio account of the special
44.21revenue fund.

44.22    Sec. 57. REPEALER.
44.23(a) Minnesota Statutes 2006, sections 121A.67; 125A.16; 125A.19; 125A.20; and
44.24125A.57, are repealed.
44.25(b) Laws 2006, chapter 263, article 3, section 16; and Laws 2007, First Special
44.26Session chapter 2, article 1, section 11, subdivisions 3, and 4, are repealed.

44.27ARTICLE 2

44.28FORECAST ADJUSTMENTS

44.29    Section 1. Laws 2007, chapter 146, article 1, section 24, subdivision 2, is amended to
44.30read:
45.1    Subd. 2. General education aid. For general education aid under Minnesota
45.2Statutes, section 126C.13, subdivision 4:

45.3 45.4		$	5,618,342,000 5,600,647,000	.....	2008
45.5 45.6		$	5,618,342,000 5,649,098,000	.....	2009

45.7    The 2008 appropriation includes $531,733,000 $536,251,000 for 2007 and
45.8$5,073,250,000 $5,064,396,000 for 2008.
45.9    The 2009 appropriation includes $546,314,000 $543,752,000 for 2008 and
45.10$5,072,028,000 $5,105,346,000 for 2009.

45.11    Sec. 2. Laws 2007, chapter 146, article 1, section 24, subdivision 3, is amended to read:
45.12    Subd. 3. Referendum tax base replacement aid. For referendum tax base
45.13replacement aid under Minnesota Statutes, section 126C.17, subdivision 7a:

45.14

$

870,000861,000

.....

2008

45.15    The 2008 appropriation includes $870,000 $861,000 for 2007 and $0 for 2008.

45.16    Sec. 3. Laws 2007, chapter 146, article 1, section 24, subdivision 4, is amended to read:
45.17    Subd. 4. Enrollment options transportation. For transportation of pupils attending
45.18postsecondary institutions under Minnesota Statutes, section 124D.09, or for transportation
45.19of pupils attending nonresident districts under Minnesota Statutes, section 124D.03:

45.20		$	95,00048,000	.....	2008
45.21		$	97,00050,000	.....	2009

45.22    Sec. 4. Laws 2007, chapter 146, article 1, section 24, subdivision 5, is amended to read:
45.23    Subd. 5. Abatement revenue. For abatement aid under Minnesota Statutes, section
45.24127A.49 :

45.25 45.26		$	1,343,000 1,333,000	.....	2008
45.27 45.28		$	1,347,000 1,629,000	.....	2009

45.29    The 2008 appropriation includes $76,000 for 2007 and $1,267,000 $1,257,000
45.30for 2008.
45.31    The 2009 appropriation includes $140,000 $139,000 for 2008 and $1,207,000
45.32$1,490,000 for 2009.

45.33    Sec. 5. Laws 2007, chapter 146, article 1, section 24, subdivision 6, is amended to read:
46.1    Subd. 6. Consolidation transition. For districts consolidating under Minnesota
46.2Statutes, section 123A.485:

46.3		$	565,000240,000	.....	2008
46.4		$	212,000339,000	.....	2009

46.5    The 2008 appropriation includes $43,000 for 2007 and $522,000 $197,000 for 2008.
46.6    The 2009 appropriation includes $57,000 $21,000 for 2008 and $155,000 $318,000
46.7for 2009.

46.8    Sec. 6. Laws 2007, chapter 146, article 1, section 24, subdivision 7, is amended to read:
46.9    Subd. 7. Nonpublic pupil education aid. For nonpublic pupil education aid under
46.10Minnesota Statutes, sections 123B.40 to 123B.43, and 123B.87:

46.11 46.12		$	16,290,000 15,601,000	.....	2008
46.13 46.14		$	16,620,000 16,608,000	.....	2009

46.15    The 2008 appropriation includes $1,606,000 $1,214,000 for 2007 and $14,684,000
46.16$14,387,000 for 2008.
46.17    The 2009 appropriation includes $1,631,000 $1,598,000 for 2008 and $14,989,000
46.18$15,010,000 for 2009.

46.19    Sec. 7. Laws 2007, chapter 146, article 1, section 24, subdivision 8, is amended to read:
46.20    Subd. 8. Nonpublic pupil transportation. For nonpublic pupil transportation aid
46.21under Minnesota Statutes, section 123B.92, subdivision 9:

46.22 46.23		$	21,551,000 20,755,000	.....	2008
46.24 46.25		$	21,392,000 21,007,000	.....	2009

46.26    The 2008 appropriation includes $2,124,000 for 2007 and $19,427,000 $18,631,000
46.27for 2008.
46.28    The 2009 appropriation includes $2,158,000 $2,070,000 for 2008 and $19,234,000
46.29$18,937,000 for 2009.

46.30B. EDUCATION EXCELLENCE

46.31    Sec. 8. Laws 2007, chapter 146, article 2, section 46, subdivision 2, is amended to read:
46.32    Subd. 2. Charter school building lease aid. For building lease aid under Minnesota
46.33Statutes, section 124D.11, subdivision 4:

47.1 47.2		$	31,875,000 32,817,000	.....	2008
47.3 47.4		$	36,193,000 37,527,000	.....	2009

47.5    The 2008 appropriation includes $2,814,000 for 2007 and $29,061,000 $30,003,000
47.6for 2008.
47.7    The 2009 appropriation includes $3,229,000 $3,333,000 for 2008 and $32,964,000
47.8$34,194,000 for 2009.

47.9    Sec. 9. Laws 2007, chapter 146, article 2, section 46, subdivision 3, is amended to read:
47.10    Subd. 3. Charter school startup cost aid. For charter school startup cost aid
47.11under Minnesota Statutes, section 124D.11:

47.12 47.13		$	1,896,000 1,801,000	.....	2008
47.14 47.15		$	2,161,000 1,987,000	.....	2009

47.16    The 2008 appropriation includes $241,000 $239,000 for 2007 and $1,655,000
47.17$1,562,000 for 2008.
47.18    The 2009 appropriation includes $183,000 $173,000 for 2008 and $1,978,000
47.19$1,814,000 for 2009.

47.20    Sec. 10. Laws 2007, chapter 146, article 2, section 46, subdivision 4, is amended to
47.21read:
47.22    Subd. 4. Integration aid. For integration aid under Minnesota Statutes, section
47.23124D.86, subdivision 5 :

47.24 47.25		$	61,769,000 59,036,000	.....	2008
47.26 47.27		$	61,000,000 62,448,000	.....	2009

47.28    The 2008 appropriation includes $5,824,000 for 2007 and $55,945,000 $53,212,000
47.29for 2008.
47.30    The 2009 appropriation includes $6,216,000 $5,912,000 for 2008 and $54,784,000
47.31$56,536,000 for 2009.

47.32    Sec. 11. Laws 2007, chapter 146, article 2, section 46, subdivision 6, is amended to
47.33read:
48.1    Subd. 6. Interdistrict desegregation or integration transportation grants. For
48.2interdistrict desegregation or integration transportation grants under Minnesota Statutes,
48.3section 124D.87:

48.4 48.5		$	9,639,000 9,901,000	.....	2008
48.6 48.7		$	11,567,000 11,881,000	.....	2009

48.8    Sec. 12. Laws 2007, chapter 146, article 2, section 46, subdivision 9, is amended to
48.9read:
48.10    Subd. 9. Tribal contract schools. For tribal contract school aid under Minnesota
48.11Statutes, section 124D.83:

48.12 48.13		$	2,238,000 2,207,000	.....	2008
48.14 48.15		$	2,422,000 2,392,000	.....	2009

48.16    The 2008 appropriation includes $204,000 for 2007 and $2,034,000 $2,003,000
48.17for 2008.
48.18    The 2009 appropriation includes $226,000 $222,000 for 2008 and $2,196,000
48.19$2,170,000 for 2009.

48.20C. SPECIAL PROGRAMS

48.21    Sec. 13. Laws 2007, chapter 146, article 3, section 24, subdivision 3, is amended to
48.22read:
48.23    Subd. 3. Aid for children with disabilities. For aid under Minnesota Statutes,
48.24section 125A.75, subdivision 3, for children with disabilities placed in residential facilities
48.25within the district boundaries for whom no district of residence can be determined:

48.26 48.27		$	1,538,000 2,086,000	.....	2008
48.28 48.29		$	1,729,000 2,282,000	.....	2009

48.30    If the appropriation for either year is insufficient, the appropriation for the other
48.31year is available.

48.32    Sec. 14. Laws 2007, chapter 146, article 3, section 24, subdivision 4, is amended to
48.33read:
48.34    Subd. 4. Travel for home-based services. For aid for teacher travel for home-based
48.35services under Minnesota Statutes, section 125A.75, subdivision 1:

49.1		$	254,000207,000	.....	2008
49.2		$	284,000227,000	.....	2009

49.3    The 2008 appropriation includes $22,000 for 2007 and $232,000 $185,000 for 2008.
49.4    The 2009 appropriation includes $25,000 $20,000 for 2008 and $259,000 $207,000
49.5for 2009.

49.6D. FACILITIES AND TECHNOLOGY

49.7    Sec. 15. Laws 2007, chapter 146, article 4, section 16, subdivision 2, is amended to
49.8read:
49.9    Subd. 2. Health and safety revenue. For health and safety aid according to
49.10Minnesota Statutes, section 123B.57, subdivision 5:

49.11		$	190,000254,000	.....	2008
49.12		$	179,000103,000	.....	2009

49.13    The 2008 appropriation includes $20,000 for 2007 and $170,000 $234,000 for 2008.
49.14    The 2009 appropriation includes $18,000 $26,000 for 2008 and $161,000 $77,000
49.15for 2009.

49.16    Sec. 16. Laws 2007, chapter 146, article 4, section 16, subdivision 3, is amended to
49.17read:
49.18    Subd. 3. Debt service equalization. For debt service aid according to Minnesota
49.19Statutes, section 123B.53, subdivision 6:

49.20 49.21		$	14,813,000 14,814,000	.....	2008
49.22 49.23		$	11,124,000 9,109,000	.....	2009

49.24    The 2008 appropriation includes $1,767,000 $1,766,000 for 2007 and $13,046,000
49.25$13,048,000 for 2008.
49.26    The 2009 appropriation includes $1,450,000 $1,449,000 for 2008 and $9,674,000
49.27$7,660,000 for 2009.

49.28    Sec. 17. Laws 2007, chapter 146, article 4, section 16, subdivision 6, is amended to
49.29read:
49.30    Subd. 6. Deferred maintenance aid. For deferred maintenance aid, according to
49.31Minnesota Statutes, section 123B.591, subdivision 4:

50.1 50.2		$	3,290,000 3,232,000	.....	2008
50.3 50.4		$	2,667,000 2,627,000	.....	2009

50.5    The 2008 appropriation includes $0 for 2007 and $3,290,000 $3,232,000 for 2008.
50.6    The 2009 appropriation includes $365,000 $359,000 for 2008 and $2,302,000
50.7$2,268,000 for 2009.

50.8    Sec. 18. Laws 2007, chapter 146, article 4, section 16, subdivision 8, is amended to
50.9read:
50.10    Subd. 8. School technology and operating capital aid grants. For school
50.11technology and operating capital grants under section 11:

50.12 50.13		$	38,145,000 38,236,000	.....	2008
50.14 50.15		$	52,676,000 52,454,000	.....	2009

50.16    This is a onetime appropriation.

50.17E. NUTRITION AND ACCOUNTING

50.18    Sec. 19. Laws 2007, chapter 146, article 5, section 13, subdivision 2, is amended to
50.19read:
50.20    Subd. 2. School lunch. For school lunch aid according to Minnesota Statutes,
50.21section 124D.111, and Code of Federal Regulations, title 7, section 210.17:

50.22 50.23		$	12,022,000 12,094,000	.....	2008
50.24 50.25		$	12,166,000 12,394,000	.....	2009

50.26    Sec. 20. Laws 2007, chapter 146, article 5, section 13, subdivision 3, is amended to
50.27read:
50.28    Subd. 3. Traditional school breakfast; kindergarten milk. For traditional school
50.29breakfast aid and kindergarten milk under Minnesota Statutes, sections 124D.1158 and
50.30124D.118 :

50.31 50.32		$	5,460,000 5,583,000	.....	2008
50.33 50.34		$	5,695,000 5,994,000	.....	2009

51.1    Sec. 21. Laws 2007, chapter 146, article 5, section 13, subdivision 4, is amended to
51.2read:
51.3    Subd. 4. Summer food service replacement aid. For summer food service
51.4replacement aid under Minnesota Statutes, section 124D.119:

51.5		$	150,000127,000	.....	2008
51.6		$	150,000	.....	2009

51.7F. EARLY CHILDHOOD AND ADULT PROGRAMS

51.8    Sec. 22. Laws 2007, chapter 146, article 9, section 17, subdivision 2, is amended to
51.9read:
51.10    Subd. 2. Early childhood family education aid. For early childhood family
51.11education aid under Minnesota Statutes, section 124D.135:

51.12 51.13		$	21,106,000 21,092,000	.....	2008
51.14 51.15		$	29,601,000 29,324,000	.....	2009

51.16    The 2008 appropriation includes $1,796,000 for 2007 and $19,310,000 $19,296,000
51.17for 2008.
51.18    The 2009 appropriation includes $2,145,000 $2,144,000 for 2008 and $27,456,000
51.19$27,180,000 for 2009.

51.20    Sec. 23. Laws 2007, chapter 146, article 9, section 17, subdivision 3, is amended to
51.21read:
51.22    Subd. 3. School readiness. For revenue for school readiness programs under
51.23Minnesota Statutes, sections 124D.15 and 124D.16:

51.24 51.25		$	9,995,000 9,987,000	.....	2008
51.26		$	10,095,000	.....	2009

51.27    The 2008 appropriation includes $909,000 $901,000 for 2007 and $9,086,000 for
51.282008.
51.29    The 2009 appropriation includes $1,009,000 for 2008 and $9,086,000 for 2009.

51.30    Sec. 24. Laws 2007, chapter 146, article 9, section 17, subdivision 4, is amended to
51.31read:
51.32    Subd. 4. Health and developmental screening aid. For health and developmental
51.33screening aid under Minnesota Statutes, sections 121A.17 and 121A.19:

52.1 52.2		$	3,159,000 2,624,000	.....	2008
52.3 52.4		$	3,330,000 2,656,000	.....	2009

52.5    The 2008 appropriation includes $288,000 for 2007 and $2,871,000 $2,336,000
52.6for 2008.
52.7    The 2009 appropriation includes $319,000 $259,000 for 2008 and $3,011,000
52.8$2,397,000 for 2009.

52.9    Sec. 25. Laws 2007, chapter 146, article 9, section 17, subdivision 8, is amended to
52.10read:
52.11    Subd. 8. Community education aid. For community education aid under
52.12Minnesota Statutes, section 124D.20:

52.13 52.14		$	1,307,000 1,299,000	.....	2008
52.15		$	816,000796,000	.....	2009

52.16    The 2008 appropriation includes $195,000 for 2007 and $1,112,000 $1,104,000
52.17for 2008.
52.18    The 2009 appropriation includes $123,000 $122,000 for 2008 and $693,000
52.19$674,000 for 2009.

52.20    Sec. 26. Laws 2007, chapter 146, article 9, section 17, subdivision 9, is amended to
52.21read:
52.22    Subd. 9. Adults with disabilities program aid. For adults with disabilities
52.23programs under Minnesota Statutes, section 124D.56:

52.24		$	710,000709,000	.....	2008
52.25		$	710,000	.....	2009

52.26    The 2008 appropriation includes $71,000 $70,000 for 2007 and $639,000 for 2008.
52.27    The 2009 appropriation includes $71,000 for 2008 and $639,000 for 2009.
52.28    School districts operating existing adults with disabilities programs that are not fully
52.29funded shall receive full funding for the program beginning in fiscal year 2008 before the
52.30commissioner awards grants to other districts.

52.31    Sec. 27. Laws 2007, chapter 146, article 9, section 17, subdivision 13, is amended to
52.32read:
52.33    Subd. 13. Adult basic education aid. For adult basic education aid under
52.34Minnesota Statutes, section 124D.531:

53.1 53.2		$	40,347,000 40,344,000	.....	2008
53.3 53.4		$	41,745,000 41,712,000	.....	2009

53.5    The 2008 appropriation includes $3,759,000 for 2007 and $36,588,000 $36,585,000
53.6for 2008.
53.7    The 2009 appropriation includes $4,065,000 for 2008 and $37,680,000 $37,647,000
53.8for 2009.