HF 6

3rd Engrossment - 85th Legislature (2007 - 2008) Posted on 12/15/2009 12:00am

A bill for an act
relating to education; providing for early childhood, family, adult, and
prekindergarten through grade 12 education including general education,
education excellence, special programs, facilities and technology, nutrition
and accounting, libraries, state agencies, forecast adjustments, technical and
conforming amendments, pupil transportation standards, and early childhood
and adult programs; providing for task force and advisory groups; requiring
school districts to give employees who are veterans the option to take personal
leave on Veteran's Day and encouraging private employers to give employees
who are veterans a day off with pay on Veteran's Day; requiring reports;
authorizing rulemaking; funding parenting time centers; funding lead hazard
reduction; appropriating money; amending Minnesota Statutes 2006, sections
13.32, by adding a subdivision; 16A.152, subdivision 2; 119A.50, by adding a
subdivision; 119A.52; 119A.535; 120A.22, subdivision 7; 120B.021, subdivision
1; 120B.023, subdivision 2; 120B.024; 120B.11, subdivision 5; 120B.132;
120B.15; 120B.30; 120B.31, subdivision 3; 120B.36, subdivision 1; 121A.22,
subdivisions 1, 3, 4; 122A.16; 122A.18, by adding a subdivision; 122A.20,
subdivision 1; 122A.414, subdivisions 1, 2; 122A.415, subdivision 1; 122A.60,
subdivision 3; 122A.61, subdivision 1; 122A.628, subdivision 2; 122A.72,
subdivision 5; 123A.73, subdivision 8; 123B.02, by adding a subdivision;
123B.03, subdivision 3, by adding a subdivision; 123B.10, subdivision 1, by
adding a subdivision; 123B.143, subdivision 1; 123B.37, subdivision 1; 123B.53,
subdivisions 1, 4, 5; 123B.54; 123B.57, subdivision 3; 123B.63, subdivision 3;
123B.77, subdivision 4; 123B.79, subdivisions 6, 8, by adding a subdivision;
123B.81, subdivisions 2, 4, 7; 123B.83, subdivision 2; 123B.88, subdivision 12;
123B.90, subdivision 2; 123B.92, subdivisions 1, 3, 5; 124D.095, subdivisions
2, 3, 4, 7; 124D.10, subdivisions 4, 23a, 24; 124D.11, subdivision 1; 124D.111,
subdivision 1; 124D.128, subdivisions 1, 2, 3; 124D.13, subdivisions 1, 2, 11,
by adding a subdivision; 124D.135, subdivisions 1, 3, 5; 124D.16, subdivision
2; 124D.175; 124D.34, subdivision 7; 124D.4531; 124D.454, subdivisions
2, 3; 124D.531, subdivisions 1, 4; 124D.55; 124D.56, subdivisions 1, 2, 3;
124D.59, subdivision 2; 124D.65, subdivisions 5, 11; 124D.84, subdivision
1; 125A.11, subdivision 1; 125A.13; 125A.14; 125A.39; 125A.42; 125A.44;
125A.45; 125A.63, by adding a subdivision; 125A.75, subdivisions 1, 4;
125A.76, subdivisions 1, 2, 4, 5, by adding a subdivision; 125A.79, subdivisions
1, 5, 6, 8; 125B.15; 126C.01, subdivision 9, by adding subdivisions; 126C.05,
subdivisions 1, 8, 15; 126C.10, subdivisions 1, 2, 2a, 2b, 4, 13a, 18, 24, 34, by
adding a subdivision; 126C.126; 126C.13, subdivision 4; 126C.15, subdivision
2; 126C.17, subdivisions 6, 9; 126C.21, subdivisions 3, 5; 126C.41, by adding
a subdivision; 126C.44; 126C.48, subdivisions 2, 7; 127A.441; 127A.47,
subdivisions 7, 8; 127A.48, by adding a subdivision; 127A.49, subdivisions 2, 3;
128D.11, subdivision 3; 134.31, by adding a subdivision; 134.34, subdivision 4;
134.355, subdivision 9; 169.01, subdivision 6, by adding a subdivision; 169.443,
by adding a subdivision; 169.447, subdivision 2; 169.4501, subdivisions 1, 2;
169.4502, subdivision 5; 169.4503, subdivisions 13, 20; 171.02, subdivisions 2,
2a; 171.321, subdivision 4; 205A.03, subdivision 1; 205A.06, subdivision 1a;
272.029, by adding a subdivision; 273.11, subdivision 1a; 273.1393; 275.065,
subdivisions 1, 1a, 3; 275.07, subdivision 2; 275.08, subdivision 1b; 276.04,
subdivision 2; 517.08, subdivision 1c; Laws 2005, First Special Session chapter
5, article 1, sections 50, subdivision 2; 54, subdivisions 2, as amended, 4, 5, as
amended, 6, as amended, 7, as amended, 8, as amended; article 2, sections 81, as
amended; 84, subdivisions 2, as amended, 3, as amended, 4, as amended, 6, as
amended, 10, as amended; article 3, section 18, subdivisions 2, as amended, 3,
as amended, 4, as amended, 6, as amended; article 4, section 25, subdivisions
2, as amended, 3, as amended; article 5, section 17, subdivision 3, as amended;
article 7, section 20, subdivisions 2, as amended, 3, as amended, 4, as amended;
article 8, section 8, subdivisions 2, as amended, 5, as amended; article 9, section
4, subdivision 2; Laws 2006, chapter 263, article 3, section 15; Laws 2006,
chapter 282, article 2, section 28, subdivision 4; article 3, section 4, subdivision
2; proposing coding for new law in Minnesota Statutes, chapters 119A;
121A; 122A; 123B; 124D; 135A; repealing Minnesota Statutes 2006, sections
121A.23; 123A.22, subdivision 11; 123B.81, subdivision 8; 124D.06; 124D.081,
subdivisions 1, 2, 3, 4, 5, 6, 9; 124D.454, subdivisions 4, 5, 6, 7; 124D.531,
subdivision 5; 124D.62; 125A.10; 125A.75, subdivision 6; 125A.76, subdivision
3; 169.4502, subdivision 15; 169.4503, subdivisions 17, 18, 26.

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

ARTICLE 1

GENERAL EDUCATION

Section 1.

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

Subd. 2.

Additional revenues; priority.

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

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

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

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

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

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

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

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

Sec. 2.

Minnesota Statutes 2006, section 124D.11, subdivision 1, is amended to read:

Subdivision 1.

General education revenue.

(a) General education revenue must
be paid to a charter school as though it were a district. The general education revenue
for each adjusted marginal cost pupil unit is the state average general education revenue
per pupil unit, plus the referendum equalization aid allowance in the pupil's district of
residence, minus an amount equal to the product of the formula allowance according to
section 126C.10, subdivision 2, times deleted text begin .0485 deleted text end new text begin .0416 new text end , calculated without basic skills revenue,
extended time revenue, alternative teacher compensation revenue, transition revenue, and
transportation sparsity revenue, plus basic skills revenue, extended time revenue, basic
alternative teacher compensation aid according to section 126C.10, subdivision 34, and
transition revenue as though the school were a school district. The general education
revenue for each extended time marginal cost pupil unit equals $4,378 new text begin for fiscal year 2007,
$4,542 for fiscal year 2008, and $4,677 for fiscal year 2009 and later new text end .

(b) Notwithstanding paragraph (a), for charter schools in the first year of operation,
general education revenue shall be computed using the number of adjusted pupil units
in the current fiscal year.

new text begin EFFECTIVE DATE. new text end

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

Sec. 3.

Minnesota Statutes 2006, section 124D.128, subdivision 1, is amended to read:

Subdivision 1.

Program established.

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

Sec. 4.

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

Subd. 2.

Commissioner designation.

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

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

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

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

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

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

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

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

Sec. 5.

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

Subd. 3.

Student planning.

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

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

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

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

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

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

Sec. 6.

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

124D.4531 CAREER AND TECHNICAL deleted text begin LEVY deleted text end new text begin REVENUE new text end .

Subdivision 1.

Career and technical levy.

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

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

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

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

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

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

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

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

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

(vii) specialized vocational instructional supplies.

(b) new text begin The district must recognize the full amount of this levy as revenue for the fiscal
year in which it is certified.
new text end

new text begin Subd. 1a. new text end

new text begin Career and technical aid. new text end

new text begin A district with a career and technical program
approved under this section is eligible for career and technical state aid in an amount equal
to 10 percent of approved expenditures under subdivision 1.
new text end

new text begin Subd. 1b. new text end

new text begin Revenue uses. new text end

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

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

Subd. 2.

Allocation from cooperative centers and intermediate districts.

For
purposes of this section, a cooperative center or an intermediate district must allocate its
approved expenditures for career and technical education programs among participating
districts.

Subd. 3.

Levy guarantee.

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

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

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

Subd. 4.

District reports.

Each district or cooperative center must report data to the
department for all career and technical education programs as required by the department
to implement the career and technical new text begin aid and new text end levy deleted text begin formula deleted text end new text begin formulas new text end .

new text begin EFFECTIVE DATE. new text end

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

Sec. 7.

Minnesota Statutes 2006, section 124D.59, subdivision 2, is amended to read:

Subd. 2.

Pupil of limited English proficiency.

(a) "Pupil of limited English
proficiency" means a pupil in kindergarten through grade 12 who meets the following
requirements:

(1) the pupil, as declared by a parent or guardian first learned a language other than
English, comes from a home where the language usually spoken is other than English, or
usually speaks a language other than English; and

(2) the pupil is determined by developmentally appropriate measures, which might
include observations, teacher judgment, parent recommendations, or developmentally
appropriate assessment instruments, to lack the necessary English skills to participate
fully in classes taught in English.

(b) Notwithstanding paragraph (a), a pupil in grades 4 through 12 who was enrolled
in a Minnesota public school on the dates during the previous school year when a
commissioner provided assessment that measures the pupil's emerging academic English
was administered, shall not be counted as a pupil of limited English proficiency in
calculating limited English proficiency pupil units under section 126C.05, subdivision
17, and shall not generate state limited English proficiency aid under section 124D.65,
subdivision 5, unless the pupil scored below the state cutoff score on an assessment
measuring emerging academic English provided by the commissioner during the previous
school year.

(c) Notwithstanding paragraphs (a) and (b), a pupil in kindergarten through grade 12
shall not be counted as a pupil of limited English proficiency in calculating limited English
proficiency pupil units under section 126C.05, subdivision 17, and shall not generate state
limited English proficiency aid under section 124D.65, subdivision 5, if deleted text begin : deleted text end

deleted text begin (1) deleted text end the pupil is not enrolled during the current fiscal year in an educational program
for pupils of limited English proficiency in accordance with sections 124D.58 to 124D.64 deleted text begin ;
or deleted text end new text begin . new text end

deleted text begin (2) the pupil has generated five or more years of average daily membership in
Minnesota public schools since July 1, 1996.
deleted text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 8.

Minnesota Statutes 2006, section 124D.65, subdivision 5, is amended to read:

Subd. 5.

School district LEP revenue.

(a) new text begin The limited English proficiency
allowance equals $700 for fiscal year 2007, and $815 for fiscal year 2008 and later.
new text end

new text begin (b) new text end A district's limited English proficiency programs revenue equals the product of
(1) deleted text begin $700 in fiscal year 2004 and later deleted text end new text begin the limited English proficiency allowance new text end times (2)
the greater of 20 or the adjusted marginal cost average daily membership of eligible pupils
of limited English proficiency enrolled in the district during the current fiscal year.

deleted text begin (b) deleted text end new text begin (c) new text end A pupil ceases to generate state limited English proficiency aid in the school
year following the school year in which the pupil attains the state cutoff score on a
commissioner-provided assessment that measures the pupil's emerging academic English.

new text begin EFFECTIVE DATE. new text end

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

Sec. 9.

Minnesota Statutes 2006, section 126C.01, is amended by adding a subdivision
to read:

new text begin Subd. 3a. new text end

new text begin Referendum market value equalizing factor. new text end

new text begin The referendum market
value equalizing factor equals the quotient derived by dividing the total referendum market
value of all school districts in the state for the year before the year the levy is certified by
the total number of resident marginal cost pupil units in the state for the current school year.
new text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 10.

Minnesota Statutes 2006, section 126C.01, is amended by adding a
subdivision to read:

new text begin Subd. 12. new text end

new text begin Location equity index. new text end

new text begin (a) A school district's wage equity index equals
each district's composite wage level divided by the statewide average wage for the same
period. The composite wage level for a school district equals the sum of 80 percent of the
district's county wage level and 20 percent of the district's economic development region
composite wage level. The composite wage level is computed by using the most recent
three-year weighted wage data with the coefficient weights set at 0.5 for the most recent
year, 0.3 for the prior year, and 0.15 for the second prior year.
new text end

new text begin (b) A school district's housing equity index equals the ratio of each district's county
median home value to the statewide median home value.
new text end

new text begin (c) A school district's location equity index equals the greater of one, or the sum of
(i) 0.65 times the district's wage equity index, and (ii) 0.35 times the district's housing
equity index.
new text end

new text begin (d) The commissioner of education annually must recalculate the indexes in this
section. For purposes of this subdivision, the commissioner must locate a school district
with boundaries that cross county borders in the county that generates the highest location
equity index for that district.
new text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 11.

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

Subdivision 1.

Pupil unit.

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

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

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

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

(d) A kindergarten pupil who is not included in paragraph (c) is counted as deleted text begin .557 of a
pupil unit for fiscal year 2000 and thereafter deleted text end new text begin 0.86 pupil units new text end .

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

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

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

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

new text begin EFFECTIVE DATE. new text end

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

Sec. 12.

Minnesota Statutes 2006, section 126C.05, subdivision 8, is amended to read:

Subd. 8.

Average daily membership.

(a) Membership for pupils in grades
kindergarten through 12 and for prekindergarten pupils with disabilities shall mean the
number of pupils on the current roll of the school, counted from the date of entry until
withdrawal. The date of withdrawal shall mean the day the pupil permanently leaves
the school or the date it is officially known that the pupil has left or has been legally
excused. However, a pupil, regardless of age, who has been absent from school for 15
consecutive school days during the regular school year or for five consecutive school days
during summer school or intersession classes of flexible school year programs without
receiving instruction in the home or hospital shall be dropped from the roll and classified
as withdrawn. Nothing in this section shall be construed as waiving the compulsory
attendance provisions cited in section 120A.22. Average daily membership equals the
sum for all pupils of the number of days of the school year each pupil is enrolled in the
district's schools divided by the number of days the schools are in session. Days of
summer school or intersession classes of flexible school year programs are only included
in the computation of membership for pupils with a disability not appropriately served
primarily in the regular classroom. A student must not be counted as more than deleted text begin 1.2 deleted text end new text begin 1.5
new text end pupils in average daily membership under this section. When the initial total average daily
membership exceeds deleted text begin 1.2 deleted text end new text begin 1.5 new text end for a pupil enrolled in more than one school district during
the fiscal year, each district's average daily membership must be reduced proportionately.

(b) A student must not be counted as more than one pupil in average daily
membership except for purposes of section 126C.10, subdivision 2a.

new text begin EFFECTIVE DATE. new text end

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

Sec. 13.

Minnesota Statutes 2006, section 126C.05, subdivision 15, is amended to read:

Subd. 15.

Learning year pupil units.

(a) When a pupil is enrolled in a learning
year program under section 124D.128, an area learning center under sections 123A.05 and
123A.06, an alternative program approved by the commissioner, or a contract alternative
program under section 124D.68, subdivision 3, paragraph (d), or subdivision 3a, for more
than 1,020 hours in a school year for a secondary student, more than 935 hours in a school
year for an elementary student new text begin more than 850 hours in a school year for a kindergarten
student without a disability enrolled in a full-day kindergarten program in fiscal year
2009 or later new text end , or more than 425 hours in a school year for a new text begin half-day new text end kindergarten student
without a disability, that pupil may be counted as more than one pupil in average daily
membership for purposes of section 126C.10, subdivision 2a. The amount in excess of
one pupil must be determined by the ratio of the number of hours of instruction provided
to that pupil in excess of: (i) the greater of 1,020 hours or the number of hours required for
a full-time secondary pupil in the district to 1,020 for a secondary pupil; (ii) the greater of
935 hours or the number of hours required for a full-time elementary pupil in the district
to 935 for an elementary pupil in grades 1 through 6; deleted text begin and deleted text end (iii) the greater of deleted text begin 425 deleted text end new text begin 850 new text end hours
or the number of hours required for a full-time kindergarten student without a disability
in the district to deleted text begin 425 deleted text end new text begin 850 new text end for a kindergarten student without a disability new text begin for fiscal years
2009 and later; and (iv) the greater of 425 hours or the number of hours required for all
kindergarten pupils for fiscal year 2008 and for a half-day kindergarten student without a
disability to 425 for a kindergarten student without a disability new text end . Hours that occur after
the close of the instructional year in June shall be attributable to the following fiscal year.
A kindergarten student must not be counted as more than 1.2 pupils in average daily
membership under this subdivision. A student in grades 1 through 12 must not be counted
as more than deleted text begin 1.2 deleted text end new text begin 1.5 new text end pupils in average daily membership under this subdivision.

(b)(i) To receive general education revenue for a pupil in an alternative program
that has an independent study component, a district must meet the requirements in this
paragraph. The district must develop, for the pupil, a continual learning plan consistent
with section 124D.128, subdivision 3. Each school district that has a state-approved public
alternative program must reserve revenue in an amount equal to at least 90 percent of the
district average general education revenue per pupil unit less compensatory revenue per
pupil unit times the number of pupil units generated by students attending a state-approved
public alternative program. The amount of reserved revenue available under this
subdivision may only be spent for program costs associated with the state-approved public
alternative program. Compensatory revenue must be allocated according to section
126C.15, subdivision 2.

(ii) General education revenue for a pupil in an approved alternative program
without an independent study component must be prorated for a pupil participating for
less than a full year, or its equivalent. The district must develop a continual learning plan
for the pupil, consistent with section 124D.128, subdivision 3. Each school district that
has a state-approved public alternative program must reserve revenue in an amount equal
to at least 90 percent of the district average general education revenue per pupil unit less
compensatory revenue per pupil unit times the number of pupil units generated by students
attending a state-approved public alternative program. The amount of reserved revenue
available under this subdivision may only be spent for program costs associated with the
state-approved public alternative program. Compensatory revenue must be allocated
according to section 126C.15, subdivision 2.

(iii) General education revenue for a pupil in an approved alternative program that
has an independent study component must be paid for each hour of teacher contact
time and each hour of independent study time completed toward a credit or graduation
standards necessary for graduation. Average daily membership for a pupil shall equal the
number of hours of teacher contact time and independent study time divided by 1,020.

(iv) For an alternative program having an independent study component, the
commissioner shall require a description of the courses in the program, the kinds of
independent study involved, the expected learning outcomes of the courses, and the means
of measuring student performance against the expected outcomes.

new text begin EFFECTIVE DATE. new text end

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

Sec. 14.

Minnesota Statutes 2006, section 126C.10, subdivision 1, is amended to read:

Subdivision 1.

General education revenue.

deleted text begin For fiscal year 2006 and later, deleted text end The
general education revenue for each district equals the sum of the district's basic revenue,
extended time revenue, gifted and talented revenue, new text begin location equity revenue, new text end basic skills
revenue, training and experience revenue, secondary sparsity revenue, elementary sparsity
revenue, transportation sparsity revenue, total operating capital revenue, equity revenue,
alternative teacher compensation revenue, and transition revenue.

new text begin EFFECTIVE DATE. new text end

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

Sec. 15.

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

Subd. 2.

Basic revenue.

The basic revenue for each district equals the formula
allowance times the adjusted marginal cost pupil units for the school year. The formula
allowance for fiscal year deleted text begin 2005 deleted text end new text begin 2007 new text end is deleted text begin $4,601 deleted text end new text begin $4,974 new text end . The formula allowance for fiscal
year deleted text begin 2006 deleted text end new text begin 2008 new text end is deleted text begin $4,783 deleted text end new text begin $5,125 new text end . The formula allowance for fiscal year deleted text begin 2007 deleted text end new text begin 2009 new text end and
subsequent years is deleted text begin $4,974 deleted text end new text begin $5,280 new text end .

Sec. 16.

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

Subd. 2a.

Extended time revenue.

(a) A school district's extended time revenue is
equal to the product of deleted text begin $4,601 deleted text end new text begin the extended time allowance new text end and the sum of the adjusted
marginal cost pupil units of the district for each pupil in average daily membership in
excess of 1.0 and less than deleted text begin 1.2 deleted text end new text begin 1.5 new text end according to section 126C.05, subdivision 8. new text begin The
extended time allowance is $4,601 for fiscal year 2007, $4,740 for fiscal year 2008, and
$4,880 for fiscal year 2009 and subsequent years.
new text end

(b) A school district's extended time revenue may be used for extended day
programs, extended week programs, summer school, deleted text begin and deleted text end other programming authorized
under the learning year program new text begin , and for additional pupil transportation costs attributable
to these programs. Not more than five percent of the extended time revenue may be used
for administrative and oversight services new text end .

new text begin EFFECTIVE DATE. new text end

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

Sec. 17.

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

Subd. 2b.

Gifted and talented revenue.

Gifted and talented revenue for each
district equals deleted text begin $4 times deleted text end the district's adjusted marginal cost pupil units for deleted text begin fiscal year 2006
and $9 for fiscal year 2007 and later deleted text end new text begin that school year times $13 for fiscal year 2008 and
later new text end . A school district must reserve gifted and talented revenue and, consistent with
section 120B.15, must spend the revenue only to:

(1) identify gifted and talented students;

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

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

new text begin EFFECTIVE DATE. new text end

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

Sec. 18.

Minnesota Statutes 2006, section 126C.10, is amended by adding a
subdivision to read:

new text begin Subd. 2c. new text end

new text begin Location equity revenue. new text end

new text begin (a) A school district's location equity revenue
equals the product of:
new text end

new text begin (1) the basic formula allowance for that year;
new text end

new text begin (2) the district's adjusted marginal cost pupil units for that year; and
new text end

new text begin (3) the district's location equity index minus one.
new text end

new text begin (b) The total annual revenue for this subdivision must not exceed $500,000.
new text end

new text begin (c) If the revenue required under paragraph (b) is insufficient to fund the formula in
paragraph (a), the commissioner of education must proportionately reduce each district's
aid payment.
new text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 19.

Minnesota Statutes 2006, section 126C.10, subdivision 4, is amended to read:

Subd. 4.

Basic skills revenue.

A school district's basic skills revenue equals the
sum of:

(1) compensatory revenue under subdivision 3; plus

(2) limited English proficiency revenue under section 124D.65, subdivision 5 deleted text begin ; plus deleted text end

deleted text begin (3) $250 times the limited English proficiency pupil units under section 126C.05,
subdivision 17 deleted text end .

new text begin EFFECTIVE DATE. new text end

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

Sec. 20.

Minnesota Statutes 2006, section 126C.10, subdivision 13a, is amended to
read:

Subd. 13a.

Operating capital levy.

To obtain operating capital revenue for fiscal
year 2007 and later, a district may levy an amount not more than the product of its
operating capital revenue for the fiscal year times the lesser of one or the ratio of its
adjusted net tax capacity per adjusted marginal cost pupil unit to the operating capital
equalizing factor. The operating capital equalizing factor equals deleted text begin $22,222 for fiscal year
2006, and deleted text end $10,700 for fiscal year deleted text begin 2007 deleted text end new text begin 2008 and $33,000 for fiscal year 2009 new text end and later.

new text begin EFFECTIVE DATE. new text end

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

Sec. 21.

Minnesota Statutes 2006, section 126C.10, subdivision 18, is amended to read:

Subd. 18.

Transportation sparsity revenue allowance.

(a) A district's
transportation sparsity allowance equals the greater of zero or the result of the following
computation:

(i) Multiply the formula allowance according to subdivision 2, by deleted text begin .1469 deleted text end new text begin .1493 new text end .

(ii) Multiply the result in clause (i) by the district's sparsity index raised to the
deleted text begin 26/100 deleted text end new text begin 30/100 new text end power.

(iii) Multiply the result in clause (ii) by the district's density index raised to the
deleted text begin 13/100 deleted text end new text begin 15/100 new text end power.

(iv) Multiply the formula allowance according to subdivision 2, by deleted text begin .0485 deleted text end new text begin .0416 new text end .

(v) Subtract the result in clause (iv) from the result in clause (iii).

(b) Transportation sparsity revenue is equal to the transportation sparsity allowance
times the adjusted marginal cost pupil units.

new text begin EFFECTIVE DATE. new text end

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

Sec. 22.

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

Subd. 24.

Equity revenue.

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

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

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

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

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

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

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

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

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

new text begin EFFECTIVE DATE. new text end

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

Sec. 23.

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

126C.126 REALLOCATING GENERAL EDUCATION REVENUE FOR
deleted text begin ALL-DAY KINDERGARTEN deleted text end new text begin EARLY EDUCATION PROGRAMS new text end .

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

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

new text begin EFFECTIVE DATE. new text end

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

Sec. 24.

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

Subd. 4.

General education aid.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Sec. 25.

Minnesota Statutes 2006, section 126C.15, subdivision 2, is amended to read:

Subd. 2.

Building allocation.

(a) A district must allocate its compensatory revenue
to each school building in the district where the children who have generated the revenue
are served unless the school district has received permission under new text begin Laws 2005, First
Special Session chapter 5, article 1, new text end section 50 to allocate compensatory revenue according
to student performance measures developed by the school board.

(b) Notwithstanding paragraph (a), a district may allocate up to five percent of the
amount of compensatory revenue that the district receives to school sites according to a
plan adopted by the school board. new text begin The money reallocated under this paragraph must be
spent for the purposes listed in subdivision 1, but may be spent on students in any grade,
including students attending school readiness or other prekindergarten programs.
new text end

(c) For the purposes of this section and section 126C.05, subdivision 3, "building"
means education site as defined in section 123B.04, subdivision 1.

(d) If the pupil is served at a site other than one owned and operated by the district,
the revenue shall be paid to the district and used for services for pupils who generate the
revenue.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2007.
new text end

Sec. 26.

Minnesota Statutes 2006, section 126C.17, subdivision 6, is amended to read:

Subd. 6.

Referendum equalization levy.

(a) deleted text begin For fiscal year 2003 and later, deleted text end
A district's referendum equalization levy equals the sum of the first tier referendum
equalization levy and the second tier referendum equalization levy.

(b) A district's first tier referendum equalization levy equals the district's first tier
referendum equalization revenue times the lesser of one or the ratio of the district's
referendum market value per resident marginal cost pupil unit to deleted text begin $476,000 deleted text end new text begin 120 percent of
the referendum market value equalizing factor new text end .

(c) A district's second tier referendum equalization levy equals the district's second
tier referendum equalization revenue times the lesser of one or the ratio of the district's
referendum market value per resident marginal cost pupil unit to deleted text begin $270,000 deleted text end new text begin 60 percent of
the referendum market value equalizing factor new text end .

new text begin EFFECTIVE DATE. new text end

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

Sec. 27.

Minnesota Statutes 2006, section 126C.17, subdivision 9, is amended to read:

Subd. 9.

Referendum revenue.

(a) The revenue authorized by section 126C.10,
subdivision 1, may be increased in the amount approved by the voters of the district at a
referendum called for the purpose. The referendum may be called by the board or shall be
called by the board upon written petition of qualified voters of the district. The referendum
must be conducted one or two calendar years before the increased levy authority, if
approved, first becomes payable. Only one election to approve an increase may be held
in a calendar year. Unless the referendum is conducted by mail under paragraph (g), the
referendum must be held on the first Tuesday after the first Monday in November. The
ballot must state the maximum amount of the increased revenue per resident marginal cost
pupil unit. The ballot may state a schedule, determined by the board, of increased revenue
per resident marginal cost pupil unit that differs from year to year over the number of
years for which the increased revenue is authorized or may state that the amount shall
increase annually by the rate of inflation. For this purpose, the rate of inflation shall be the
annual inflationary increase calculated under subdivision 2, paragraph (b). The ballot may
state that existing referendum levy authority is expiring. In this case, the ballot may also
compare the proposed levy authority to the existing expiring levy authority, and express
the proposed increase as the amount, if any, over the expiring referendum levy authority.
The ballot must designate the specific number of years, not to exceed ten, for which the
referendum authorization applies. The ballot, including a ballot on the question to revoke
or reduce the increased revenue amount under paragraph (c), must abbreviate the term
"per resident marginal cost pupil unit" as "per pupil." The notice required under section
275.60 may be modified to read, in cases of renewing existing levies:

"BY VOTING "YES" ON THIS BALLOT QUESTION, YOU deleted text begin MAY BE VOTING
FOR A PROPERTY TAX INCREASE deleted text end new text begin ARE RENEWING AN EXISTING
PROPERTY TAX REFERENDUM. YOU ARE NOT CHANGING YOUR
OPERATING REFERENDUM FROM ITS LEVEL IN THE PREVIOUS YEAR new text end ."

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

"Shall the increase in the revenue proposed by (petition to) the board of .........,
School District No. .., be approved?"

If approved, an amount equal to the approved revenue per resident marginal cost
pupil unit times the resident marginal cost pupil units for the school year beginning in
the year after the levy is certified shall be authorized for certification for the number of
years approved, if applicable, or until revoked or reduced by the voters of the district at a
subsequent referendum.

(b) The board must prepare and deliver by first class mail at least 15 days but no more
than 30 days before the day of the referendum to each taxpayer a notice of the referendum
and the proposed revenue increase. The board need not mail more than one notice to any
taxpayer. For the purpose of giving mailed notice under this subdivision, owners must be
those shown to be owners on the records of the county auditor or, in any county where
tax statements are mailed by the county treasurer, on the records of the county treasurer.
Every property owner whose name does not appear on the records of the county auditor
or the county treasurer is deemed to have waived this mailed notice unless the owner
has requested in writing that the county auditor or county treasurer, as the case may be,
include the name on the records for this purpose. The notice must project the anticipated
amount of tax increase in annual dollars for typical residential homesteads, agricultural
homesteads, apartments, and commercial-industrial property within the school district.

The notice for a referendum may state that an existing referendum levy is expiring
and project the anticipated amount of increase over the existing referendum levy in
the first year, if any, in annual dollars for typical residential homesteads, agricultural
homesteads, apartments, and commercial-industrial property within the district.

The notice must include the following statement: "Passage of this referendum will
result in an increase in your property taxes." However, in cases of renewing existing
levies, the notice may include the following statement: "Passage of this referendum may
result in deleted text begin an increase deleted text end new text begin a change new text end in your property taxes."

(c) A referendum on the question of revoking or reducing the increased revenue
amount authorized pursuant to paragraph (a) may be called by the board and shall be called
by the board upon the written petition of qualified voters of the district. A referendum to
revoke or reduce the revenue amount must state the amount per resident marginal cost
pupil unit by which the authority is to be reduced. Revenue authority approved by the
voters of the district pursuant to paragraph (a) must be available to the school district at
least once before it is subject to a referendum on its revocation or reduction for subsequent
years. Only one revocation or reduction referendum may be held to revoke or reduce
referendum revenue for any specific year and for years thereafter.

(d) A petition authorized by paragraph (a) or (c) is effective if signed by a number of
qualified voters in excess of 15 percent of the registered voters of the district on the day
the petition is filed with the board. A referendum invoked by petition must be held on the
date specified in paragraph (a).

(e) The approval of 50 percent plus one of those voting on the question is required to
pass a referendum authorized by this subdivision.

(f) At least 15 days before the day of the referendum, the district must submit a
copy of the notice required under paragraph (b) to the commissioner and to the county
auditor of each county in which the district is located. Within 15 days after the results
of the referendum have been certified by the board, or in the case of a recount, the
certification of the results of the recount by the canvassing board, the district must notify
the commissioner of the results of the referendum.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for elections conducted on or after
July 1, 2007.
new text end

Sec. 28.

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

Subd. 3.

County apportionment deduction.

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

new text begin EFFECTIVE DATE. new text end

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

Sec. 29.

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

Subd. 5.

Adjustment for failure to meet federal maintenance of effort.

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

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

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

new text begin EFFECTIVE DATE. new text end

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

Sec. 30.

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

126C.44 SAFE SCHOOLS LEVY.

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

new text begin (b) A school district that is a member of an intermediate school district may
include in its authority under this section the costs associated with safe schools activities
authorized under paragraph (a) for intermediate school district programs. This authority
must not exceed $5 times the adjusted marginal cost pupil units of the member districts.
This authority is in addition to any other authority authorized under this section. Revenue
raised under this paragraph must be transferred to the intermediate school district.
new text end

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

new text begin EFFECTIVE DATE. new text end

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

Sec. 31.

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

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

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

Sec. 32.

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

Subd. 7.

Alternative attendance programs.

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

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

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

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

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

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

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

new text begin EFFECTIVE DATE. new text end

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

Sec. 33.

Minnesota Statutes 2006, section 127A.47, subdivision 8, is amended to read:

Subd. 8.

Charter schools.

(a) The general education aid for districts must be
adjusted for each pupil attending a charter school under section 124D.10. The adjustments
must be made according to this subdivision.

(b) General education aid paid to a district in which a charter school not providing
transportation according to section 124D.10, subdivision 16, is located must be increased
by an amount equal to the sum of:

(1) the product of: (i) the sum of an amount equal to the product of the formula
allowance according to section 126C.10, subdivision 2, times deleted text begin .0485 deleted text end new text begin .0416 new text end , plus the
transportation sparsity allowance for the district; times (ii) the adjusted marginal cost
pupil units attributable to the pupil; plus

(2) the product of $223 deleted text begin and deleted text end new text begin for fiscal year 2007, $198 for fiscal year 2008, and
$203 for fiscal year 2009 and later, times new text end the extended time marginal cost pupil units
attributable to the pupil.

new text begin EFFECTIVE DATE. new text end

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

Sec. 34.

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

Subd. 2.

Abatements.

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

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

(2) the ratio of:

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

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

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

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

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

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

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

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

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

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

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

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

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

Sec. 35.

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

Subd. 3.

Excess tax increment.

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

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

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

(2) the ratio of:

(i) the sum of the amounts of the district's certified levy for the fiscal year in which
the excess tax increment is paid according to the following:

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Sec. 36.

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

new text begin Subd. 6a. new text end

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

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

new text begin EFFECTIVE DATE. new text end

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

Sec. 37.

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

Subd. 2.

Application process.

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

new text begin EFFECTIVE DATE. new text end

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

Sec. 38.

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

Subd. 2.

Onetime energy assistance aid.

For onetime energy assistance aid under
section 3:

$

3,495,000

.....

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

new text begin EFFECTIVE DATE. new text end

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

Sec. 39. new text begin SCHOOL FINANCE REFORM; TASK FORCE ESTABLISHED.
new text end

new text begin Subdivision 1. new text end

new text begin Task force established. new text end

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

new text begin Subd. 2. new text end

new text begin Task force goals. new text end

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

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

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

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

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

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

new text begin Subd. 3. new text end

new text begin Task force members. new text end

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

new text begin Subd. 4. new text end

new text begin Task force recommendations. new text end

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

new text begin EFFECTIVE DATE. new text end

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

Sec. 40. new text begin CHARTER SCHOOL PUPIL TRANSPORTATION.
new text end

new text begin The commissioner of education shall undertake a study and make recommendations
to the legislature on the organization, delivery, and financing of transportation services for
students attending public charter schools. The study must be undertaken with affected
stakeholders including school districts, charter schools, parents of charter school students,
pupil transportation providers and others with expertise in arranging and financing pupil
transportation services. The study must be completed and reported to the house and senate
Education Policy and Finance Committees no later than December 31, 2007.
new text end

Sec. 41. new text begin APPROPRIATIONS.
new text end

new text begin Subdivision 1. new text end

new text begin Department of Education. new text end

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

new text begin Subd. 2. new text end

new text begin General education aid. new text end

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

	new text begin $ new text end	new text begin 5,654,187,000 new text end	new text begin ..... new text end	new text begin 2008 new text end
	new text begin $ new text end	new text begin 5,977,201,000 new text end	new text begin ..... new text end	new text begin 2009 new text end

new text begin The 2008 appropriation includes $531,733,000 for 2007 and $5,122,454,000 for
2008.
new text end

new text begin The 2009 appropriation includes $550,550,000 for 2008 and $5,426,651,000 for
2009.
new text end

new text begin Subd. 3. new text end

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

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

new text begin $ new text end

new text begin 870,000 new text end

new text begin ..... new text end

new text begin 2008 new text end

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

new text begin Subd. 4. new text end

new text begin Enrollment options transportation. new text end

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

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

new text begin Subd. 5. new text end

new text begin Abatement revenue. new text end

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

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

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

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

new text begin Subd. 6. new text end

new text begin Consolidation transition. new text end

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

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

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

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

new text begin Subd. 7. new text end

new text begin Nonpublic pupil education aid. new text end

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

	new text begin $ new text end	new text begin 16,349,000 new text end	new text begin ..... new text end	new text begin 2008 new text end
	new text begin $ new text end	new text begin 16,803,000 new text end	new text begin ..... new text end	new text begin 2009 new text end

new text begin The 2008 appropriation includes $1,606,000 for 2007 and $14,743,000 for 2008.
new text end

new text begin The 2009 appropriation includes $1,638,000 for 2008 and $15,165,000 for 2009.
new text end

new text begin Subd. 8. new text end

new text begin Nonpublic pupil transportation. new text end

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

	new text begin $ new text end	new text begin 21,747,000 new text end	new text begin ..... new text end	new text begin 2008 new text end
	new text begin $ new text end	new text begin 21,993,000 new text end	new text begin ..... new text end	new text begin 2009 new text end

new text begin The 2008 appropriation includes $2,124,000 for 2007 and $19,623,000 for 2008.
new text end

new text begin The 2009 appropriation includes $2,180,000 for 2008 and $19,813,000 for 2009.
new text end

new text begin Subd. 9. new text end

new text begin One-room schoolhouse. new text end

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

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

new text begin Subd. 10. new text end

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

new text begin For declining pupil aid for
Independent School District No. 801, Browns Valley, due to the March 2007 flood:
new text end

	new text begin $ new text end	new text begin 120,000 new text end	new text begin ..... new text end	new text begin 2008 new text end
	new text begin $ new text end	new text begin 100,000 new text end	new text begin ..... new text end	new text begin 2009 new text end

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

new text begin Subd. 11. new text end

new text begin Declining pupil aid McGregor. new text end

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

new text begin $ new text end

new text begin 100,000 new text end

new text begin ..... new text end

new text begin 2008 new text end

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

new text begin Subd. 12. new text end

new text begin Compensatory revenue pilot project. new text end

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

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

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

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

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

new text begin Subd. 13. new text end

new text begin School Finance Reform Task Force. new text end

new text begin For the school finance reform task
force under section 39:
new text end

new text begin $ new text end

new text begin 100,000 new text end

new text begin ..... new text end

new text begin 2008 new text end

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

Sec. 42. new text begin REVISOR'S INSTRUCTION.
new text end

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

Sec. 43. new text begin REPEALER.
new text end

new text begin (a) new text end new text begin Minnesota Statutes 2006, section 124D.06, new text end new text begin is repealed effective June 30, 2007.
new text end

new text begin (b) new text end new text begin Minnesota Statutes 2006, section 124D.081, subdivisions 1, 2, 3, 4, 5, 6, and
9, new text end new text begin are repealed effective for revenue for fiscal year 2009.
new text end

ARTICLE 2

EDUCATION EXCELLENCE

Section 1.

Minnesota Statutes 2006, section 13.32, is amended by adding a subdivision
to read:

new text begin Subd. 8a. new text end

new text begin Access to student records; school conferences. new text end

new text begin (a) A parent or guardian
of a student may designate one "significant individual," defined under paragraph (c), to
participate in a school conference involving the child of the parent or guardian. The parent
or guardian must provide the school with prior written consent allowing the significant
individual to participate in the conference and to receive any data on the child of the
consenting parent or guardian that is necessary and relevant to the conference discussions.
The consenting parent or guardian may withdraw consent, in writing, at any time.
new text end

new text begin (b) A school may accept the following form, or another consent to release student
data form, as sufficient to meet the requirements of this subdivision:
new text end

new text begin "CONSENT TO PARTICIPATE IN CONFERENCES AND
RECEIVE STUDENT DATA
new text end

new text begin I, ........................................... (Name of parent or guardian), as parent or guardian of
........................................... (Name of child), consent to allow ...........................................
(Name of significant individual) to participate in school conferences and receive student
data relating to the above-named child, consistent with Minnesota Statutes, section 13.32,
subdivision 8a. I understand that I may withdraw my consent, upon written request, at
any time.
new text end

new text begin . new text end	new text begin (Signature of parent or guardian) new text end
new text begin . new text end	new text begin (Date)" new text end

new text begin (c) For purposes of this section, "significant individual" means one additional
adult designated by a child's parent or guardian to attend school-related activities and
conferences. The significant individual must reside with the child and participate actively
in the child's care and upbringing.
new text end

Sec. 2.

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

new text begin Subd. 3. new text end

new text begin Early childhood literacy programs. new text end

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

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

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

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

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

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

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

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

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

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

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

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

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

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

new text begin EFFECTIVE DATE. new text end

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

Sec. 3.

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

Subd. 7.

Education records.

(a) A district new text begin , a charter school, or a nonpublic school
that receives services or aid under sections 123B.40 to 123B.48 new text end from which a student is
transferring must transmit the student's educational records, within ten business days of a
request, to the district new text begin , the charter school, or the nonpublic school new text end in which the student is
enrolling. Districts new text begin , charter schools, and nonpublic schools that receive services or aid
under sections 123B.40 to 123B.48 new text end must make reasonable efforts to determine the district new text begin ,
the charter school, or the nonpublic school new text end in which a transferring student is next enrolling
in order to comply with this subdivision.

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

new text begin (c) new text end A school district new text begin , a charter school, or a nonpublic school that receives services
or aid under sections 123B.40 to 123B.48 new text end that transmits a student's educational records
to another school district or other educational entity new text begin , charter school, or nonpublic school new text end
to which the student is transferring must include in the transmitted records information
about new text begin any formal suspension, expulsion, and exclusion new text end disciplinary action deleted text begin taken as a
result of any incident in which the student possessed or used a dangerous weapon deleted text end new text begin under
sections 121A.40 to 121A.56. The district, the charter school, or the nonpublic school
that receives services or aid under sections 123B.40 to 123B.48 must provide notice to
a student and the student's parent or guardian that formal disciplinary records will be
transferred as part of the student's educational record, in accordance with data practices
under chapter 13 and the Family Educational Rights and Privacy Act of 1974, United
States Code, title 20, section 1232(g) new text end .

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

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

Sec. 4.

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

Subdivision 1.

Required academic standards.

The following subject areas are
required for statewide accountability:

(1) language arts;

(2) mathematics;

(3) science;

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

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

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

new text begin To satisfy state graduation requirements under section 120B.024, paragraph (a),
clause (6), the physical education standards under clause (5) must be consistent with either
the (i) six physical education standards developed by the department's quality teaching
network or the (ii) six National Physical Education Standards developed by the National
Association for Sport and Physical Education. To satisfy federal reporting requirements
for continued funding under Title VII of the Physical Education for Progress Act, a school
district, if applicable, must notify the department by March 15, in the form and manner
the department prescribes, of its intent to comply with the National Physical Education
Standards in the next school year.
new text end

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

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

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

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

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment,
except that clause (5) applies to students entering the ninth grade in the 2008-2009 school
year and later.
new text end

Sec. 5.

Minnesota Statutes 2006, section 120B.023, subdivision 2, is amended to read:

Subd. 2.

Revisions and reviews required.

(a) The commissioner of education must
revise and appropriately embed technology and information literacy standards consistent
with recommendations from school media specialists into the state's academic standards
and graduation requirements and implement a review cycle for state academic standards
and related benchmarks, consistent with this subdivision. During each review cycle, the
commissioner also must examine the alignment of each required academic standard and
related benchmark with the knowledge and skills students need for college readiness and
advanced work in the particular subject area.

(b) The commissioner in the 2006-2007 school year must revise and align the state's
academic standards and high school graduation requirements in mathematics to require
that students satisfactorily complete the revised mathematics standards, beginning in the
2010-2011 school year. Under the revised standards:

(1) students must satisfactorily complete an algebra I credit by the end of eighth
grade; and

(2) students scheduled to graduate in the 2014-2015 school year or later must
satisfactorily complete an algebra II credit or its equivalent.

The commissioner also must ensure that the statewide mathematics assessments
administered to students in grades 3 through 8 and 11 beginning in the 2010-2011
school year are aligned with the state academic standards in mathematics. The statewide
11th grade mathematics test administered to students under clause (2) beginning in
the 2013-2014 school year must include algebra II test items that are aligned with
corresponding state academic standards in mathematics. new text begin The office of educational
accountability under section 120B.31, subdivision 3, in collaboration with the Minnesota
State Colleges and Universities, must determine and the commissioner must set a passing
score for the statewide 11th grade mathematics test that represents readiness for college so
that a student who achieves a passing score on this test, upon graduation, is immediately
ready to take college courses for college credit in a two-year or a four-year institution,
consistent with section 135A.104. new text end The commissioner must implement a review of the
academic standards and related benchmarks in mathematics beginning in the 2015-2016
school year.

(c) The commissioner in the 2007-2008 school year must revise and align the state's
academic standards and high school graduation requirements in the arts to require that
students satisfactorily complete the revised arts standards beginning in the 2010-2011
school year. The commissioner must implement a review of the academic standards and
related benchmarks in arts beginning in the 2016-2017 school year.

(d) The commissioner in the 2008-2009 school year must revise and align the state's
academic standards and high school graduation requirements in science to require that
students satisfactorily complete the revised science standards, beginning in the 2011-2012
school year. Under the revised standards, students scheduled to graduate in the 2014-2015
school year or later must satisfactorily complete a chemistry or physics credit. The
commissioner must implement a review of the academic standards and related benchmarks
in science beginning in the 2017-2018 school year.

(e) The commissioner in the 2009-2010 school year must revise and align the state's
academic standards and high school graduation requirements in language arts to require
that students satisfactorily complete the revised language arts standards beginning in the
2012-2013 school year. new text begin The office of educational accountability under section 120B.31,
subdivision 3, in collaboration with the Minnesota State Colleges and Universities, must
determine and the commissioner must set a passing score for the statewide tenth grade
reading and language arts test that represents readiness for college so that a student who
achieves a passing score on this test, upon graduation, is immediately ready to take college
courses for college credit in a two-year or a four-year institution, consistent with section
135A.104. new text end The commissioner must implement a review of the academic standards and
related benchmarks in language arts beginning in the 2018-2019 school year.

(f) The commissioner in the 2010-2011 school year must revise and align the state's
academic standards and high school graduation requirements in social studies to require
that students satisfactorily complete the revised social studies standards beginning in the
2013-2014 school year. The commissioner must implement a review of the academic
standards and related benchmarks in social studies beginning in the 2019-2020 school year.

new text begin (g) The commissioner in the 2011-2012 school year must revise and align the state's
standards and high school graduation requirements in physical education, consistent with
the requirements governing sections 120B.021, subdivision 1, clause (5), and 120B.024,
paragraph (a), clause (6), to require students to satisfactorily complete the revised physical
education standards beginning in the 2014-2015 school year. The commissioner must
implement a review of the standards and related benchmarks in physical education
beginning in the 2020-2021 school year.
new text end

deleted text begin (g) deleted text end new text begin (h) new text end School districts and charter schools must revise and align local academic
standards and high school graduation requirements in health, deleted text begin physical education, deleted text end world
languages, and career and technical education to require students to complete the revised
standards beginning in a school year determined by the school district or charter school.
School districts and charter schools must formally establish a periodic review cycle for
the academic standards and related benchmarks in health, deleted text begin physical education, deleted text end world
languages, and career and technical education.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment
and applies to students entering the ninth grade in the 2008-2009 school year and later.
new text end

Sec. 6.

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

120B.024 GRADUATION REQUIREMENTS; COURSE CREDITS.

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

(1) four credits of language arts;

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

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

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

(5) one credit in the arts; deleted text begin and
deleted text end

(6) new text begin one-half credit in physical education; and
new text end

new text begin (7) new text end a minimum of deleted text begin seven deleted text end new text begin six new text end elective course credits.

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

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

new text begin (c) The commissioner, in collaboration with the Minnesota State Colleges and
Universities, must develop and implement a statewide plan to communicate with all
Minnesota high school students no later than the beginning of 9th grade the state's
expectations for college readiness, consistent with section 120B.023, subdivision 2,
paragraphs (b) and (e), and section 135A.104.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
Paragraph (a) applies to students entering the ninth grade in the 2008-2009 school year
and later.
new text end

Sec. 7.

Minnesota Statutes 2006, section 120B.11, subdivision 5, is amended to read:

Subd. 5.

Report.

(a) By October 1 of each year, the school board shall use standard
statewide reporting procedures the commissioner develops and adopt a report that includes
the following:

(1) student achievement goals for meeting state academic standards;

(2) results of local assessment data, and any additional test data;

new text begin (3) description of student achievement in subject areas under section 120B.021,
subdivision 1, for which locally developed academic standards apply and statewide
assessments are not developed;
new text end

deleted text begin (3) deleted text end new text begin (4) new text end the annual school district improvement plans including staff development
goals under section 122A.60;

deleted text begin (4) deleted text end new text begin (5) new text end information about district and learning site progress in realizing previously
adopted improvement plans; and

deleted text begin (5) deleted text end new text begin (6) new text end the amount and type of revenue attributed to each education site as defined
in section 123B.04.

(b) The school board shall publish the report in the local newspaper with the largest
circulation in the district, by mail, or by electronic means such as the district Web site. If
electronic means are used, school districts must publish notice of the report in a periodical
of general circulation in the district. School districts must make copies of the report
available to the public on request. The board shall make a copy of the report available to
the public for inspection. The board shall send a copy of the report to the commissioner
of education by October 15 of each year.

(c) The title of the report shall contain the name and number of the school district and
read "Annual Report on Curriculum, Instruction, and Student Achievement." The report
must include at least the following information about advisory committee membership:

(1) the name of each committee member and the date when that member's term
expires;

(2) the method and criteria the school board uses to select committee members; and

(3) the date by which a community resident must apply to next serve on the
committee.

Sec. 8.

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

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

Subdivision 1.

Establishment; eligibility.

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

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

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

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

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

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

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

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

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

Subd. 2.

Application and review process; funding priority.

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

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

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

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

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

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

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

Subd. 3.

Funding; permissible funding uses.

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

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

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

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

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

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

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

(4) purchase books and supplies;

(5) pay course or program fees;

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

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

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

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

Subd. 4.

Annual reports.

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

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

new text begin EFFECTIVE DATE. new text end

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

Sec. 9.

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

120B.15 GIFTED AND TALENTED STUDENTS PROGRAMS.

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

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

(1) multiple and objective criteria; and

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

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

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

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

Sec. 10.

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

120B.30 STATEWIDE TESTING AND REPORTING SYSTEM.

Subdivision 1.

Statewide testing.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Subd. 1a.

Statewide and local assessments; results.

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

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

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

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

(c) Reporting of assessment results must:

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

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

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

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

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

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

new text begin (f) A school district or charter school must place a student's assessment score for
9th grade writing, 10th grade language arts, and 11th grade mathematics on the student's
transcript.
new text end

Subd. 2.

Department of Education assistance.

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

Subd. 3.

Reporting.

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

Subd. 4.

Access to tests.

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

Sec. 11.

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

Subd. 3.

Educational accountability.

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

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

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

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

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

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

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

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

new text begin EFFECTIVE DATE. new text end

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

Sec. 12.

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

Subdivision 1.

School performance report cards.

(a) The commissioner shall
use objective criteria based on levels of student performance to deleted text begin identify four to six
designations applicable to high and low performing public schools. The objective
criteria shall include deleted text end new text begin report new text end at least student academic performance, school safety,
new text begin student-to-teacher ratios that clearly indicate the definition of teacher for purposes of
determining these ratios, new text end and staff characteristics, with a value-added deleted text begin growth deleted text end component
added deleted text begin by the 2006-2007 deleted text end new text begin no later than the 2008-2009 new text end school year. new text begin The report must indicate
a school's adequate yearly progress status.
new text end

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

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

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

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

new text begin EFFECTIVE DATE. new text end

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

Sec. 13.

Minnesota Statutes 2006, section 121A.22, subdivision 1, is amended to read:

Subdivision 1.

Applicability.

new text begin (a) new text end This section applies only:

(1) when the parent of a pupil requests school personnel to administer drugs or
medicine new text begin , including physician-prescribed naturopathic medicine, new text end to the pupil; or

(2) when administration is allowed by the individual education plan of a child with a
disability.

The request of a parent may be oral or in writing. An oral request must be reduced
to writing within two school days, provided that the district may rely on an oral request
until a written request is received.

new text begin (b) "Physician-prescribed naturopathic medicine" under this section means
naturopathic medicine, as defined by the federal Food, Drug, and Cosmetic Act, that is
prescribed by a licensed physician in consultation with a board-certified naturopathic
physician.
new text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 14.

Minnesota Statutes 2006, section 121A.22, subdivision 3, is amended to read:

Subd. 3.

Labeling.

Drugs or medicine subject to this section new text begin , except
physician-prescribed and labeled naturopathic medicine, new text end must be in a container with a
label prepared by a pharmacist according to section 151.212 and applicable rules.

new text begin EFFECTIVE DATE. new text end

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

Sec. 15.

Minnesota Statutes 2006, section 121A.22, subdivision 4, is amended to read:

Subd. 4.

Administration.

new text begin (a) new text end Drugs and medicine subject to this section new text begin , except
physician-prescribed naturopathic medicine, new text end must be administered in a manner consistent
with instructions on the label. new text begin Physician-prescribed naturopathic medicine must be
administered according to the order of the prescribing physician.
new text end

new text begin (b) new text end Drugs and medicine subject to this section must be administered, to the extent
possible, according to school board procedures that must be developed in consultation:

(1) with a school nurse, in a district that employs a school nurse;

(2) with a licensed school nurse, in a district that employs a licensed school nurse;

(3) with a public or private health or health-related organization, in a district that
contracts with a public or private health or health-related organization, according to
section 121A.21; or

(4) with the appropriate party, in a district that has an arrangement approved by the
commissioner of education, according to section 121A.21.

new text begin EFFECTIVE DATE. new text end

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

Sec. 16.

new text begin [121A.231] RESPONSIBLE FAMILY LIFE AND SEXUALITY
EDUCATION PROGRAMS.
new text end

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

new text begin (a) "Responsible family life and sexuality education"
means education in grades 7 through 12 that:
new text end

new text begin (1) respects community values and encourages family communication;
new text end

new text begin (2) develops skills in communication, decision making, and conflict resolution;
new text end

new text begin (3) contributes to healthy relationships;
new text end

new text begin (4) provides human development and sexuality education that is age appropriate
and medically accurate;
new text end

new text begin (5) includes an abstinence-first approach to delaying initiation of sexual activity that
emphasizes abstinence while also including education about the use of protection and
contraception; and
new text end

new text begin (6) promotes individual responsibility.
new text end

new text begin (b) "Age appropriate" refers to topics, messages, and teaching methods suitable to
particular ages or age groups of children and adolescents, based on developing cognitive,
emotional, and behavioral capacity typical for the age or age group.
new text end

new text begin (c) "Medically accurate" means verified or supported by research conducted in
compliance with scientific methods and published in peer-reviewed journals, where
appropriate, and recognized as accurate and objective by professional organizations
and agencies in the relevant field, such as the federal Centers for Disease Control
and Prevention, the American Public Health Association, the American Academy of
Pediatrics, or the American College of Obstetricians and Gynecologists.
new text end

new text begin Subd. 2. new text end

new text begin Curriculum requirements. new text end

new text begin (a) A school district must offer and may
independently establish policies, procedures, curriculum, and services for providing
responsible family life and sexuality education that is age appropriate and medically
accurate for grades 7 through 12.
new text end

new text begin (b) A school district must consult with parents or guardians of enrolled students
when establishing policies, procedures, curriculum, and services under this subdivision.
new text end

new text begin Subd. 3. new text end

new text begin Notice and parental options. new text end

new text begin (a) It is the legislature's intent to encourage
pupils to communicate with their parents or guardians about human sexuality and to respect
rights of parents or guardians to supervise their children's education on these subjects.
new text end

new text begin (b) Parents or guardians may excuse their children from all or part of a responsible
family life and sexuality education program.
new text end

new text begin (c) A school district must establish policies and procedures consistent with
paragraph (e) and this section for providing parents or guardians reasonable notice with
the following information:
new text end

new text begin (1) if the district is offering a responsible family life and sexuality education program
to the parents' or guardians' child during the course of the year;
new text end

new text begin (2) how the parents or guardians may inspect the written and audio/visual
educational materials used in the program and the process for inspection;
new text end

new text begin (3) if the program is presented by school district personnel or outside consultants,
and if outside consultants are used, who they may be; and
new text end

new text begin (4) parents' or guardians' right to choose not to have their child participate in the
program and the procedure for exercising that right.
new text end

new text begin (d) A school district must establish policies and procedures for reasonably restricting
the availability of written and audio/visual educational materials from public view of
students who have been excused from all or part of a responsible family life and sexuality
education program at the request of a parent or guardian, consistent with paragraph (e)
and this section.
new text end

new text begin (e) A school district may offer a responsible family life and sexuality education
program under this section to a pupil only with the prior written consent of the pupil's
parent or guardian. A school district must make reasonable arrangements with school
personnel for alternative instruction for those pupils whose parents or guardians refuse to
give their consent, and must not impose an academic or other penalty upon a pupil merely
for arranging the alternative instruction. School personnel may evaluate and assess the
quality of the pupil's work completed as part of the alternative instruction.
new text end

new text begin Subd. 4. new text end

new text begin Assistance to school districts. new text end

new text begin (a) The Department of Education may
offer services to school districts to help them implement effective responsible family life
and sexuality education programs. In making these services available the department
may provide:
new text end

new text begin (1) training for teachers, parents, and community members in the development of
responsible family life and sexuality education curriculum or services and in planning
for monitoring and evaluation activities;
new text end

new text begin (2) resource staff persons to provide expert training, curriculum development and
implementation, and evaluation services;
new text end

new text begin (3) technical assistance to promote and coordinate community, parent, and youth
forums in communities identified as having high needs for responsible family life and
sexuality education;
new text end

new text begin (4) technical assistance for issue management and policy development training for
school boards, superintendents, principals, and administrators across the state; and
new text end

new text begin (b) Technical assistance in accordance with National Health Education Standards
provided by the department to school districts may:
new text end

new text begin (1) promote instruction and use of materials that are age appropriate;
new text end

new text begin (2) provide information that is medically accurate and objective;
new text end

new text begin (3) provide instruction and promote use of materials that are respectful of marriage
and commitments in relationships;
new text end

new text begin (4) provide instruction and promote use of materials that are appropriate for use
with pupils and family experiences based on race, gender, sexual orientation, ethnic
and cultural background, and appropriately accommodate alternative learning based on
language or disability;
new text end

new text begin (5) provide instruction and promote use of materials that encourage pupils to
communicate with their parents or guardians about human sexuality;
new text end

new text begin (6) provide instruction and promote use of age-appropriate materials that teach
abstinence from sexual intercourse as the only certain way to prevent unintended
pregnancy or sexually transmitted infections, including HIV and HPV, and provide
information about the role and value of abstinence while also providing medically accurate
information on other methods of preventing and reducing risk for unintended pregnancy
and sexually transmitted infections;
new text end

new text begin (7) provide instruction and promote use of age-appropriate materials that are
medically accurate in explaining transmission modes, risks, symptoms, and treatments for
sexually transmitted infections, including HIV and HPV;
new text end

new text begin (8) provide instruction and promote use of age-appropriate materials that address
varied societal views on sexuality, sexual behaviors, pregnancy, and sexually transmitted
infections, including HIV and HPV, in an age-appropriate manner;
new text end

new text begin (9) provide instruction and promote use of age-appropriate materials that provide
information about the effectiveness and safety of all FDA-approved methods for
preventing and reducing risk for unintended pregnancy and sexually transmitted infections,
including HIV and HPV;
new text end

new text begin (10) provide instruction and promote use of age-appropriate materials that provide
instruction in skills for making and implementing responsible decisions about sexuality;
new text end

new text begin (11) provide instruction and promote use of age-appropriate materials that provide
instruction in skills for making and implementing responsible decisions about finding and
using health services; and
new text end

new text begin (12) provide instruction and promote use of age-appropriate materials that do not
teach or promote religious doctrine or bias against a religion or reflect or promote bias
against any person on the basis of any category protected under the Minnesota Human
Rights Act, chapter 363A.
new text end

Sec. 17.

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

122A.16 HIGHLY QUALIFIED TEACHER DEFINED.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Sec. 18.

Minnesota Statutes 2006, section 122A.18, is amended by adding a
subdivision to read:

new text begin Subd. 2c. new text end

new text begin Determining passing scores. new text end

new text begin The passing score on the examination of
skills in reading, writing, and mathematics required as a condition of granting an initial
teaching license under subdivision 2, paragraph (b), is the passing score in effect at the
time the person takes the examination and not the time the person applies for the initial
teaching license.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment
and applies to all persons enrolled in a teacher preparation program on that date and later.
new text end

Sec. 19.

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

Subdivision 1.

Grounds for revocation, suspension, or denial.

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

(1) immoral character or conduct;

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

(3) gross inefficiency or willful neglect of duty;

(4) failure to meet licensure requirements; or

(5) fraud or misrepresentation in obtaining a license.

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

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

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

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

new text begin EFFECTIVE DATE. new text end

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

Sec. 20.

Minnesota Statutes 2006, section 122A.414, subdivision 1, is amended to read:

Subdivision 1.

Restructured pay system.

A restructured alternative teacher
professional pay system new text begin that may include experience and educational credits new text end is
established under subdivision 2 to provide incentives to encourage teachers to improve
their knowledge and instructional skills in order to improve student learning and for
school districts, intermediate school districts, and charter schools to recruit and retain
highly qualified teachers, encourage highly qualified teachers to undertake challenging
assignments, and support teachers' roles in improving students' educational achievement.

new text begin EFFECTIVE DATE. new text end

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

Sec. 21.

Minnesota Statutes 2006, section 122A.414, subdivision 2, is amended to read:

Subd. 2.

Alternative teacher professional pay system.

(a) To participate in this
program, a school district, intermediate school district, school site, or charter school must
have an educational improvement plan under section 122A.413 and an alternative teacher
professional pay system agreement under paragraph (b). A charter school participant also
must comply with subdivision 2a.

(b) The alternative teacher professional pay system agreement must:

(1) describe how teachers can achieve career advancement and additional
compensation;

(2) describe how the school district, intermediate school district, school site, or
charter school will provide teachers with career advancement options that allow teachers
to retain primary roles in student instruction and facilitate site-focused professional
development that helps other teachers improve their skills;

(3) reform the "steps and lanes" salary schedule, prevent any teacher's compensation
paid before implementing the pay system from being reduced as a result of participating
in this system, and base at least 60 percent of any compensation increase new text begin funded by
alternative compensation revenue new text end on teacher performance using:

(i) schoolwide student achievement gains under section 120B.35 or locally selected
standardized assessment outcomes, or both;

(ii) measures of student achievement; and

(iii) an objective evaluation program that includes:

(A) individual teacher evaluations aligned with the educational improvement plan
under section 122A.413 and the staff development plan under section 122A.60; and

(B) objective evaluations using multiple criteria conducted by a locally selected and
periodically trained evaluation team that understands teaching and learning;

(4) provide integrated ongoing site-based professional development activities to
improve instructional skills and learning that are aligned with student needs under section
122A.413, consistent with the staff development plan under section 122A.60 and led
during the school day by trained teacher leaders such as master or mentor teachers;

(5) allow any teacher in a participating school district, intermediate school district,
school site, or charter school that implements an alternative pay system to participate in
that system without any quota or other limit; and

(6) encourage collaboration rather than competition among teachers.

new text begin EFFECTIVE DATE. new text end

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

Sec. 22.

Minnesota Statutes 2006, section 122A.415, subdivision 1, is amended to read:

Subdivision 1.

Revenue amount.

(a) A school district, intermediate school district,
school site, or charter school that meets the conditions of section 122A.414 and submits an
application approved by the commissioner is eligible for alternative teacher compensation
revenue.

(b) For school district and intermediate school district applications, the commissioner
must consider only those applications to participate that are submitted jointly by a
district and the exclusive representative of the teachers. The application must contain an
alternative teacher professional pay system agreement that:

(1) implements an alternative teacher professional pay system consistent with
section 122A.414; and

(2) is negotiated and adopted according to the Public Employment Labor Relations
Act under chapter 179A, except that notwithstanding section 179A.20, subdivision 3, a
district may enter into a contract for a term of two or four years.

Alternative teacher compensation revenue for a qualifying school district or site in
which the school board and the exclusive representative of the teachers agree to place
teachers in the district or at the site on the alternative teacher professional pay system
equals $260 times the number of pupils enrolled at the district or site on October 1 of
the previous fiscal year. Alternative teacher compensation revenue for a qualifying
intermediate school district must be calculated under section 126C.10, subdivision 34,
deleted text begin paragraphs (a) and (b) deleted text end new text begin paragraph (c) new text end .

(c) For a newly combined or consolidated district, the revenue shall be computed
using the sum of pupils enrolled on October 1 of the previous year in the districts entering
into the combination or consolidation. The commissioner may adjust the revenue
computed for a site using prior year data to reflect changes attributable to school closings,
school openings, or grade level reconfigurations between the prior year and the current
year.

(d) The revenue is available only to school districts, intermediate school districts,
school sites, and charter schools that fully implement an alternative teacher professional
pay system by October 1 of the current school year.

new text begin EFFECTIVE DATE. new text end

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

Sec. 23.

Minnesota Statutes 2006, section 122A.60, subdivision 3, is amended to read:

Subd. 3.

Staff development outcomes.

The advisory staff development committee
must adopt a staff development plan for improving student achievement. The plan must
be consistent with education outcomes that the school board determines. The plan
must include ongoing staff development activities that contribute toward continuous
improvement in achievement of the following goals:

(1) improve student achievement of state and local education standards in all areas
of the curriculum by using best practices methods;

(2) effectively meet the needs of a diverse student population, including at-risk
children, children with disabilities, and gifted children, within the regular classroom
and other settings;

(3) provide an inclusive curriculum for a racially, ethnically, and culturally diverse
student population that is consistent with the state education diversity rule and the district's
education diversity plan;

(4) improve staff collaboration and develop mentoring and peer coaching programs
for teachers new to the school or district;

(5) effectively teach and model violence prevention policy and curriculum that
address early intervention alternatives, issues of harassment, and teach nonviolent
alternatives for conflict resolution; deleted text begin and
deleted text end

(6) provide teachers and other members of site-based management teams with
appropriate management and financial management skills new text begin ; and
new text end

new text begin (7) improve and increase teachers' knowledge of the academic subjects they teach new text end .

Sec. 24.

Minnesota Statutes 2006, section 122A.61, subdivision 1, is amended to read:

Subdivision 1.

Staff development revenue.

A district is required to reserve
an amount equal to at least two percent of the basic revenue under section 126C.10,
subdivision 2, for in-service education for programs under section 120B.22, subdivision 2,
for staff development plans, including plans for challenging instructional activities and
experiences under section 122A.60, and for curriculum development and programs, other
in-service education, teachers' workshops, teacher conferences, the cost of substitute
teachers staff development purposes, preservice and in-service education for special
education professionals and paraprofessionals, new text begin higher education courses and programs in
teachers' areas of licensure, new text end and other related costs for staff development efforts. A district
may annually waive the requirement to reserve their basic revenue under this section if
a majority vote of the licensed teachers in the district and a majority vote of the school
board agree to a resolution to waive the requirement. A district in statutory operating debt
is exempt from reserving basic revenue according to this section. Districts may expend an
additional amount of unreserved revenue for staff development based on their needs. With
the exception of amounts reserved for staff development from revenues allocated directly
to school sites, the board must initially allocate 50 percent of the reserved revenue to each
school site in the district on a per teacher basis, which must be retained by the school site
until used. The board may retain 25 percent to be used for district wide staff development
efforts. The remaining 25 percent of the revenue must be used to make grants to school
sites for best practices methods. A grant may be used for any purpose authorized under
section 120B.22, subdivision 2, 122A.60, or for the costs of curriculum development and
programs, other in-service education, teachers' workshops, teacher conferences, substitute
teachers for staff development purposes, and other staff development efforts, and
determined by the site professional development team. The site professional development
team must demonstrate to the school board the extent deleted text begin to which deleted text end new text begin that new text end staff at the site have
met the outcomes of the program. The board may withhold a portion of initial allocation
of revenue if the staff development outcomes are not being met.

new text begin EFFECTIVE DATE. new text end

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

Sec. 25.

new text begin [122A.633] SCHOLAR LOANS TO PREPARE TEACHERS OF COLOR.
new text end

new text begin Subdivision 1. new text end

new text begin Establishment; definitions. new text end

new text begin (a) A scholar loan program is
established to encourage academically talented postsecondary students of color to become
teachers of early childhood, elementary, or secondary education.
new text end

new text begin (b) For the purposes of this section, the following terms have the meanings given
them:
new text end

new text begin (1) "student of color" means a student who is African American, American Indian,
Alaskan native, Asian American or Pacific Islander, or Hispanic; and
new text end

new text begin (2) "director" means the director of the Minnesota Office of Higher Education.
new text end

new text begin Subd. 2. new text end

new text begin Eligibility. new text end

new text begin To be eligible for a scholar loan, a student of color must:
new text end

new text begin (1) be an American citizen residing in Minnesota;
new text end

new text begin (2) be registered as a junior or senior in a Minnesota public or private postsecondary
institution and enrolled in a teacher preparation program approved by the Board of
Teaching at that postsecondary institution;
new text end

new text begin (3) be making satisfactory progress towards a baccalaureate degree with a major
in education;
new text end

new text begin (4) agree to teach in a Minnesota school district with a student of color population of
at least 15 percent or a desegregation/integration plan approved by the commissioner of
education; and
new text end

new text begin (5) meet academic criteria specified by the director in consultation with the
commissioner.
new text end

new text begin Subd. 3. new text end

new text begin Application process; awarding scholar loans. new text end

new text begin (a) The director, in
consultation with the commissioner of education, shall award scholar loans to eligible
students of color. A student of color must submit an application for a scholar loan to
the director in the form and manner determined by the director in consultation with the
commissioner. The application must include the criteria in subdivision 2 and any other
information required by the director.
new text end

new text begin (b) A student of color may receive scholar loans for two consecutive academic
years if the student of color remains enrolled full time in a teacher preparation program
and continues to make satisfactory progress toward the baccalaureate degree. For each
academic year, a loan may not exceed the lesser of the cost of tuition, fees, books, and
on-campus housing, if applicable, or a maximum amount of $10,000. The director must
award ten percent of the scholar loans to students of color who transfer from a Minnesota
public community or technical college to a Minnesota public or private college or
university with an approved teacher preparation program.
new text end

new text begin (c) The director must spend up to five percent of any appropriation for promotion of
the scholar loan program, recruitment of students of color to the program, and retention
and mentoring of students of color while attending a teacher preparation program and
teaching in an eligible Minnesota public school under subdivision 2, clause (4). The
director must consult with the commissioner to consider the use of existing state programs,
as appropriate, to provide the services under this paragraph.
new text end

new text begin Subd. 4. new text end

new text begin Loan forgiveness; deferral; repayment. new text end

new text begin (a) A scholar loan may be
forgiven if a recipient is employed as a teacher under section 122A.40 or 122A.41 in an
eligible school under subdivision 2, clause (4). The director shall forgive up to $2,500 of
the principal of the outstanding loan amount for successful completion of each school year
of full-time teaching up to four school years of teaching in an eligible school or a pro rata
amount of the principal for eligible employment during part of a school year, part-time
employment as a substitute, or other part-time teaching.
new text end

new text begin (b) If there is no eligible employment available, the director may grant an exemption
from the 15 percent district student of color teaching requirement or a deferral from
payment of principal and interest on the loan. The director may also grant a deferral
of payment of principal and interest on the loan during any time period the recipient is
enrolled at least one-half time in an advanced degree program in a field that leads to
employment by a school district. The recipient shall apply for a loan deferral by submitting
written notification to the director in a form and manner established by the director.
new text end

new text begin (c) A recipient with an outstanding scholar loan amount who is not having the loan
forgiven under paragraph (a) or deferred under paragraph (b) must repay the principal of
the loan plus interest at the rate of six percent. The interest rate must begin accruing the
first day of the first month following the last month of the period of forgiveness or deferral.
Interest does not accrue during the period of forgiveness or deferral.
new text end

new text begin (d) The director shall establish repayment procedures for scholar loans including,
at least, variable repayment schedules consistent with the need and anticipated income
streams of loan recipients. The repayment period begins the first day of the first month
after:
new text end

new text begin (1) the recipient terminates full-time enrollment in an approved teacher preparation
program;
new text end

new text begin (2) the recipient completes an approved teacher preparation program and does not
teach in an eligible school under subdivision 2, clause (4), or have an exemption under
paragraph (b);
new text end

new text begin (3) the period of forgiveness under paragraph (a) ends; or
new text end

new text begin (4) the period of deferral under paragraph (b) ends.
new text end

new text begin Subd. 5. new text end

new text begin Revolving fund. new text end

new text begin The scholar loan repayment revolving account is
established in the state treasury. Any amounts repaid by a loan recipient shall be deposited
in the account. All money in the account is annually appropriated to the director for the
purposes of the scholar loan program under this section.
new text end

Sec. 26.

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

Subd. 5.

Center functions.

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

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

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

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

new text begin EFFECTIVE DATE. new text end

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

Sec. 27.

new text begin [122A.95] VETERAN'S DAY RECOGNITION.
new text end

new text begin (a) Every independent, special, and common school district and every charter school
shall honor the federal Veteran's Day holiday by:
new text end

new text begin (1) granting to each staff member who is a veteran the option of using Veteran's
Day as a personal leave day; and
new text end

new text begin (2) if the school district or school is open and providing instruction on Veteran's
Day, instructing the students about Veteran's Day and the significance to our nation of the
service provided by veterans. The instruction must be given in each school for at least 30
minutes or one school period, whichever is longer.
new text end

new text begin (b) In recognition of the educational value of observing Veteran's Day and honoring
the service provided by all our veterans, Minnesota institutions, organizations, and other
entities are encouraged to honor the federal Veteran's Day holiday by granting to each
employee who is a veteran a day off with pay on that holiday.
new text end

Sec. 28.

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

new text begin Subd. 16a. new text end

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

new text begin The board may authorize payment of a district administrator's membership
fee to local economic development associations or other community or civic organizations.
new text end

Sec. 29.

Minnesota Statutes 2006, section 123B.03, subdivision 3, is amended to read:

Subd. 3.

Definitions.

For purposes of this section:

(a) "School" means a school as defined in section 120A.22, subdivision 4, except
a home school, and includes a school receiving tribal contract or grant school aid under
section 124D.83; school, for the purposes of this section, also means a service cooperative,
a special education cooperative, or an education district under Minnesota Statutes 1997
Supplement, section 123.35, a charter school under section 124D.10, and a joint powers
district under section 471.59.

(b) "School hiring authority" means the school principal or other person having
general control and supervision of the school.

new text begin (c) "Security violations" means the failure to prevent or failure to institute safeguards
to prevent access, use, retention, or dissemination of information in violation of the
security and management control outsourcing standard.
new text end

Sec. 30.

Minnesota Statutes 2006, section 123B.03, is amended by adding a
subdivision to read:

new text begin Subd. 4. new text end

new text begin Third-party handling of criminal history record information. new text end

new text begin (a)
For purposes of this section, a school hiring authority may contract with a third party to
conduct background checks required in subdivision 1. Prior to engaging in the contract
the school hiring authority shall:
new text end

new text begin (1) request and receive written permission from the state compact officer as defined
in section 299C.58, article I, paragraph (2), item (B);
new text end

new text begin (2) provide the state compact officer a copy of the contract; and
new text end

new text begin (3) inquire of the state compact officer whether a prospective contractor has any
security violations.
new text end

new text begin (b) The contract shall specifically describe the purposes for which the background
check information may be made available, consistent with applicable data practices
law, and shall incorporate by reference a security and management control outsourcing
standard approved by the state compact officer.
new text end

Sec. 31.

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

Subdivision 1.

Boards shall not charge certain fees.

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

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

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

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

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

(5) instructional costs for necessary school personnel employed in any course or
educational program required for graduation;

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

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

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

(9) locker rentals;

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

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

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

Sec. 32.

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

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

Sec. 33.

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

Subd. 3.

Alternative attendance programs.

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

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

new text begin EFFECTIVE DATE. new text end

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

Sec. 34.

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

new text begin Subdivision 1. new text end

new text begin Accreditation. new text end

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

new text begin Subd. 2. new text end

new text begin Eligibility. new text end

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

new text begin Subd. 3. new text end

new text begin Aid. new text end

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

Sec. 35.

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

Subd. 2.

Definitions.

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

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

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

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

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

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

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

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

Sec. 36.

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

Subd. 3.

Authorization; notice; limitations on enrollment.

(a) A student may
apply deleted text begin to an online learning provider to enroll in online learning deleted text end new text begin for full-time enrollment in
an approved online learning program under section 124D.03, 124D.08 or 124D.10, or for
supplemental online learning. Notwithstanding sections 124D.03, 124D.08, and 124D.10,
procedures for enrolling in online learning shall be as provided in this subdivision new text end . A
student age 17 or younger must have the written consent of a parent or guardian to apply.
No school district or charter school may prohibit a student from applying to enroll in
online learning. deleted text begin An online learning provider that accepts a student under this section must,
within ten days, notify the student and the enrolling district if the enrolling district is not
the online learning provider. The notice must report the student's course or program and
hours of instruction. deleted text end new text begin In order that a student may enroll in online learning, the student
and the student's parents must submit an application to the online learning provider and
identify the reason for enrolling in online learning. The online learning provider that
accepts a student under this section must within ten days notify the student and the
enrolling district in writing if the enrolling district is not the online learning provider. The
student and family must notify the online learning provider of their intent to enroll in
online learning within ten days of acceptance, at which time the student and parent must
sign a statement of assurance that they have reviewed the online course or program and
understand the expectations of online learning enrollment. The online learning provider
must notify the enrolling district of the student's enrollment in online learning in writing
on a form provided by the department.
new text end

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

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

deleted text begin (c) deleted text end new text begin (d) new text end An online learning provider may limit enrollment if the provider's school
board or board of directors adopts by resolution specific standards for accepting and
rejecting students' applications.

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

Sec. 37.

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

Subd. 4.

Online learning parameters.

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

(b) An online learning student may:

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

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

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

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

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

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

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

Sec. 38.

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

Subd. 7.

Department of Education.

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

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

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

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

Sec. 39.

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

Subd. 4.

Formation of school.

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

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

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

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

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

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

(2) the charter school is fiscally sound;

(3) the sponsor supports the expansion; and

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

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

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

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

(3) establish proper filing techniques;

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

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

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

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

Sec. 40.

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

Subd. 23a.

Related party lease costs.

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

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

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

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

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

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

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

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

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

Sec. 41.

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

Subd. 24.

Pupil enrollment upon nonrenewal or termination of charter school
contract.

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

Sec. 42.

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

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

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

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

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

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

new text begin EFFECTIVE DATE. new text end

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

Sec. 43.

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

Subdivision 1.

Awards.

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

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

Sec. 44.

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

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

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

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

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

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

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

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

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

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

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

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2008, and later.
new text end

Sec. 45.

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

Subd. 34.

Basic alternative teacher compensation aid.

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

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

new text begin (b) The basic alternative teacher compensation aid for an intermediate school district
with a plan approved under section 122A.414, subdivision 2b, equals $3,800 times the
number of licensed teachers teaching in the school on October 1 of the previous fiscal year. new text end

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

new text begin EFFECTIVE DATE. new text end

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

Sec. 46.

new text begin [135A.104] COLLEGE READINESS.
new text end

new text begin (a) The Minnesota State Colleges and Universities must collaborate with the office
of educational accountability under section 120B.31, subdivision 3, in determining
passing scores on the Minnesota comprehensive assessments in reading and language arts
for grade 10 and in mathematics for grade 11 under section 120B.30 so that "passing
score" performances on those two assessments represent a student's college readiness. For
purposes of this section and chapter 120B, "college readiness" means that a student who
graduates from a public high school is immediately ready to take college courses for
college credit in a two-year or a four-year institution within the Minnesota State Colleges
and Universities system. The Minnesota State Colleges and Universities also must
collaborate with the commissioner of education to develop and implement a statewide
plan to communicate the state's expectations for college readiness to all Minnesota high
school students no later than the beginning of ninth grade.
new text end

new text begin (b) The entrance and admission materials that the Minnesota State Colleges and
Universities provide to prospective students must clearly indicate the level of academic
preparation that students must have in order to be ready to immediately take college
courses for college credit in two-year and four-year institutions.
new text end

Sec. 47.

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

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

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

new text begin EFFECTIVE DATE. new text end

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

Sec. 48. new text begin GRANT PROGRAM TO PROMOTE PROFESSIONAL TEACHING
STANDARDS.
new text end

new text begin Subdivision 1. new text end

new text begin Establishment. new text end

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

new text begin Subd. 2. new text end

new text begin Eligibility. new text end

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

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

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

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

new text begin Subd. 3. new text end

new text begin Application process. new text end

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

new text begin Subd. 4. new text end

new text begin Grant awards; proceeds. new text end

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

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

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

Sec. 49. new text begin EXPERIENCE REQUIREMENTS.
new text end

new text begin Any rules adopted by the Board of School Administrators governing principal
licensure must require that a person applying for a principal license have at least three
years of successful teaching experience gained while holding a classroom teaching license
valid for the positions in which the applicant taught.
new text end

Sec. 50. new text begin RULEMAKING AUTHORITY.
new text end

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

new text begin EFFECTIVE DATE. new text end

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

Sec. 51. new text begin RULEMAKING REQUIRED.
new text end

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

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

new text begin EFFECTIVE DATE. new text end

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

Sec. 52. new text begin RULEMAKING AUTHORIZED; SUPPLEMENTAL EDUCATION
SERVICE PROVIDERS.
new text end

new text begin The commissioner of education must amend Minnesota Rules, part 3512.5400,
consistent with the requirements under Minnesota Statutes, chapter 14, to include
specifications that provide the basis for withdrawing Department of Education approval
from supplemental education service providers that fail to increase students' academic
proficiency for two consecutive school years. The amended rule also must clearly indicate:
new text end

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

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

new text begin EFFECTIVE DATE. new text end

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

Sec. 53. new text begin RULEMAKING AUTHORITY.
new text end

new text begin (a) The commissioner of education shall adopt rules under Minnesota Statutes,
chapter 14, for physical education standards required for high school graduation, consistent
with requirements governing Minnesota Statutes, sections 120B.021, subdivision 1, clause
(5)(i), and 120B.024, paragraph (a), clause (6), after reviewing the six physical education
standards developed by the Department of Education's health and physical education
quality teaching network and consulting with interested and qualified stakeholders and
members of the public about the proposed substance of the physical education standards.
new text end

new text begin (b) Consistent with the requirements governing Minnesota Statutes, sections
120B.021, subdivision 1, clause (5)(ii), and 120B.024, paragraph (a), clause (6), the
commissioner of education must use the expedited rulemaking process under Minnesota
Statutes, section 14.389, to adopt a rule governing physical education standards that
contains the six National Physical Education Standards developed by the National
Association for Sport and Physical Education requiring a physically educated person to:
new text end

new text begin (1) demonstrate competency in motor skills and movement patterns needed to
perform a variety of physical activities;
new text end

new text begin (2) demonstrate understanding of movement concepts, principles, strategies, and
tactics as they apply to learning and performance of physical activities;
new text end

new text begin (3) participate regularly in physical education;
new text end

new text begin (4) achieve and maintain a health-enhancing level of physical fitness;
new text end

new text begin (5) exhibit responsible personal and social behavior that respects one's self and
others in physical activity settings; and
new text end

new text begin (6) value physical activity for health, enjoyment, challenge, self-expression, and
social interaction.
new text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 54. new text begin WORLD LANGUAGES RESOURCES.
new text end

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

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

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

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

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

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

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

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

new text begin (c) Beginning July 1, 2008, the department shall assist world languages teachers
and other school staff in developing and implementing world languages programs
that acknowledge and reinforce the language proficiency and cultural awareness that
non-English language speakers already possess, and encourage students' proficiency in
multiple world languages. Programs under this paragraph must encompass indigenous
American Indian languages and cultures, among other world languages and cultures. The
department shall consult with postsecondary institutions in developing related professional
development opportunities
new text end

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

new text begin EFFECTIVE DATE. new text end

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

Sec. 55. new text begin WORLD LANGUAGES PILOT PROGRAM GRANTS.
new text end

new text begin (a) A pilot program awarding five world languages grants of $50,000 per grant to
interested and qualified school sites and school districts is established for fiscal year 2009
to develop and implement sustainable, high-quality model world languages programs
and to enhance existing world languages programs at various grade levels for students
in kindergarten through grade 12. Program participants must simultaneously support
both non-English language learners in maintaining their native language while mastering
English and native English speakers in learning other languages.
new text end

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

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

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

new text begin EFFECTIVE DATE. new text end

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

Sec. 56. new text begin BILINGUAL AND MULTILINGUAL CERTIFICATES; DEPARTMENT
OF EDUCATION.
new text end

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

new text begin EFFECTIVE DATE. new text end

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

Sec. 57. new text begin MASTER TEACHER TRAINING IN ECONOMICS AND PERSONAL
FINANCE.
new text end

new text begin The commissioner of education must contract with the Minnesota Council on
Economic Education to allow 20 highly qualified economics and personal finance teachers
throughout the state to participate in a week-long summer training program that offers
content, skills for teaching adults, mentoring, and workshop planning and delivery. The
program must enable participants, as master teachers, to provide professional development
to other teachers interested in improving their teaching of economics and personal
finance. Successful master teachers may co-teach teacher workshops with members
of the statewide network of centers for economic education and provide professional
development workshops as part of school districts' professional development programs.
new text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 58. new text begin SCHOOL PERFORMANCE REPORT CARDS; ADVISORY GROUP
RECOMMENDATIONS.
new text end

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

new text begin (b) Advisory group members under paragraph (a) include: two qualified experts in
measurement in education selected by the State Council on Measurement in Education;
three regionally diverse school district research and evaluation directors selected by the
Minnesota Assessment Group; one school superintendent selected by the Minnesota
Association of School Administrators; one University of Minnesota faculty selected by
the dean of the College of Education and Human Development; one licensed teacher
selected by Education Minnesota; two parents selected by the Minnesota Parent Teachers
Association with expertise in measurement in education; and the director of evaluation and
testing at the Minnesota Department of Education. Advisory group members' terms and
other advisory group matters are subject to Minnesota Statutes, section 15.059, subdivision
6. The Independent Office of Educational Accountability must present the advisory group's
recommendations under paragraph (a) to the education policy and finance committees of
the legislature by February 15, 2008. The advisory group expires February 16, 2008.
new text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 59. new text begin ALTERNATIVE SCHOOL CALENDAR PILOT PROGRAM.
new text end

new text begin Subdivision 1. new text end

new text begin Establishment. new text end

new text begin Notwithstanding Minnesota Statutes, section
120A.41 or 120A.415, or other law to the contrary, but consistent with Minnesota
Statutes, section 124D.128, an alternative school calendar pilot program is established to
examine the impact of school calendar arrangements on student learning by comparing
students' academic gains in school districts and charter schools that use traditional and
nontraditional school calendars. The commissioner of education must structure the
program and select elementary and secondary program participants with the purpose of
comparing the impact of traditional and nontraditional school calendars on:
new text end

new text begin (1) the amount of educational material students retain after school vacations;
new text end

new text begin (2) the educational enrichment opportunities and remedial help available to students
throughout the school year;
new text end

new text begin (3) the impact of the calendar on student attendance, student disciplinary actions,
and student achievement test scores; and
new text end

new text begin (4) the amount of time available to students and school staff for out-of-school
learning, vacations, and recreation.
new text end

new text begin Subd. 2. new text end

new text begin Eligibility; application. new text end

new text begin An interested school district, charter school, or
groups of school districts or charter schools that participate for a particular purpose may
apply to the commissioner of education to participate in the pilot program in the form
and manner the commissioner determines. An applicant must identify in its application
the internal and external factors that it anticipates may determine its preference for a
traditional or nontraditional school calendar, including the impact of the school calendar
on: costs related to employee compensation, transportation, food, facility use throughout
the calendar year, and facility maintenance; needs of at-risk students; number of
instructional and staff development days; and the availability of extracurricular activities,
community resources, and before- and after-school care and child care. The commissioner
may require an applicant to provide additional information.
new text end

new text begin Subd. 3. new text end

new text begin Application review; grant awards. new text end

new text begin When reviewing an application, the
commissioner must determine whether the applicant met the requirements in subdivisions
1 and 2, and only an applicant that satisfies all the requirements is eligible to receive a
grant under this section. The commissioner must equitably distribute grant awards, to the
extent feasible, on the basis of geography and must consider grant applications from
existing and proposed flexible learning year programs under Minnesota Statutes, section
124D.12. The commissioner must base the amount of the grant award on the number of
students the grantee has enrolled in school and the length and structure of the grantee's
school calendar. Grant expenditures must be consistent with budget information the
grantee periodically submits to the commissioner.
new text end

new text begin Subd. 4. new text end

new text begin Evaluation. new text end

new text begin The commissioner must provide for an ongoing annual
evaluation of the impact of school calendar arrangements on student learning under
subdivision 1, clauses (1) to (4). Within 180 days of when the pilot program terminates,
the commissioner must recommend to the education policy and finance committees of the
legislature preferred school calendars based upon demonstrated student achievement and
the criteria listed in subdivision 1.
new text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 60. new text begin AMERICAN INDIAN SCHOLARSHIP.
new text end

new text begin Administration of the American Indian scholarship program under Minnesota
Statutes, section 124D.84, is transferred from the Department of Education to the
Minnesota Office of Higher Education. The Minnesota Office of Higher Education must
maintain an office at no cost to the scholarship program that employs at least one person in
the Bemidji area for distributing scholarships under this section. Office space and support
may be provided by Bemidji State University at no cost to the scholarship program.
new text end

Sec. 61. new text begin TEACHER TRAINING TO INTEGRATE LEARNING
TECHNOLOGIES INTO K-12 CLASSROOMS.
new text end

new text begin (a) The commissioner of education must contract with the University of Minnesota
for qualified experts to provide teacher training in effectively using computers and
related technologies in kindergarten through grade 12 classrooms. The experts must
provide professional development opportunities to teachers throughout the state and
enable participants to successfully use technology-related instructional resources to help
diverse students meet state and local academic standards and graduation requirements and
achieve educational excellence, and enhance teachers' learning and curriculum content
and instruction. The experts also must enable participants to serve as master teachers to
provide professional development to other teachers interested in better integrating the use
of learning technologies into kindergarten through grade 12 classrooms. Participants who
serve as master teachers may co-teach teacher workshops with other qualified professional
development providers and participate in professional development workshops as part
of school districts' professional development programs.
new text end

new text begin (b) The commissioner of education must provide for an evaluation of the
effectiveness of the teacher training program under paragraph (a) and recommend to the
education policy and finance committees of the legislature by February 15, 2010, whether
or not to make the program available statewide.
new text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 62. new text begin ADVISORY TASK FORCE ON MINNESOTA AMERICAN INDIAN
TRIBES AND COMMUNITIES AND K-12 STANDARDS-BASED REFORM.
new text end

new text begin (a) The commissioner of education shall appoint an advisory task force on
Minnesota American Indian tribes and communities and kindergarten through grade 12
standards-based reform that is composed of the following representatives: Department
of Education staff experienced in working with American Indian students and programs;
Minnesota American Indian tribes and communities; Minnesota School Board Association;
school administrators; Education Minnesota; the state Board of Teaching; the Minnesota
Council on Indian Affairs; postsecondary faculty who serve as instructors in teacher
preparation programs; local community service providers who work with Minnesota
American Indian tribes and communities; and other representatives recommended by task
force members. Task force members' terms and other task force matters are subject to
Minnesota Statutes, section 15.059, subject to the limits of available appropriations. The
task force must submit a written report to the education policy and finance committees
of the legislature by February 15, 2008, that includes any recommended changes to the
state's performance standards, content requirements, assessments measures, and teacher
preparation programs to most effectively meet the educational needs of American Indian
students enrolled in Minnesota schools.
new text end

new text begin (b) Upon request, the commissioner of education must provide the task force with
technical, fiscal, and other support.
new text end

new text begin (c) The task force expires on February 16, 2008.
new text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 63. new text begin REVISOR'S INSTRUCTION.
new text end

new text begin The revisor of statutes shall renumber Minnesota Statutes, section 124D.84 to
section 136A.126, correct cross-references, and make other necessary corrections to
implement section 60.
new text end

Sec. 64. new text begin APPROPRIATIONS.
new text end

new text begin Subdivision 1. new text end

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

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

new text begin Subd. 2. new text end

new text begin American Indian scholarships. new text end

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

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

new text begin Of this appropriation, $75,000 per year is for administration under section 58.
new text end

Sec. 65. new text begin APPROPRIATIONS
new text end

new text begin Subdivision 1. new text end

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

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

new text begin Subd. 2. new text end

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

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

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

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

Sec. 66. new text begin APPROPRIATIONS.
new text end

new text begin Subdivision 1. new text end

new text begin Department. new text end

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

new text begin Subd. 2. new text end

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

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

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

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

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

new text begin Subd. 3. new text end

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

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

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

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

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

new text begin Subd. 4. new text end

new text begin Integration aid. new text end

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

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

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

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

new text begin Subd. 5. new text end

new text begin Magnet school program grants. new text end

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

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

new text begin These amounts may be used for magnet school programs under Minnesota Statutes,
section 124D.88.
new text end

new text begin Up to $100,000 each year is available for site-based decision-making grants under
Minnesota Statutes, section 123B.04, subdivision 2, clause (g).
new text end

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

new text begin Subd. 6. new text end

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

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

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

new text begin Subd. 7. new text end

new text begin Success for the future. new text end

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

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

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

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

new text begin Subd. 8. new text end

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

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

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

new text begin Subd. 9. new text end

new text begin Tribal contract schools. new text end

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

	new text begin $ new text end	new text begin 2,251,000 new text end	new text begin ..... new text end	new text begin 2008 new text end
	new text begin $ new text end	new text begin 2,463,000 new text end	new text begin ..... new text end	new text begin 2009 new text end

new text begin The 2008 appropriation includes $204,000 for 2007 and $2,047,000 for 2008.
new text end

new text begin The 2009 appropriation includes $227,000 for 2008 and $2,236,000 for 2009.
new text end

new text begin Subd. 10. new text end

new text begin Early childhood family education programs at tribal contract schools.
new text end

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

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

new text begin Subd. 11. new text end

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

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

	new text begin $ new text end	new text begin 12,650,000 new text end	new text begin ..... new text end	new text begin 2008 new text end
	new text begin $ new text end	new text begin 12,650,000 new text end	new text begin ..... new text end	new text begin 2009 new text end

new text begin $11,500,000 each year is to continue the general administration and reporting of the
statewide testing program.
new text end

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

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

new text begin The base for this program in fiscal year 2010 and later is $12,650,000.
new text end

new text begin Subd. 12. new text end

new text begin First grade preparedness. new text end

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

new text begin $ new text end

new text begin 7,250,000 new text end

new text begin ..... new text end

new text begin 2008 new text end

new text begin Subd. 13. new text end

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

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

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

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

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

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

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

new text begin Subd. 14. new text end

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

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

	new text begin $ new text end	new text begin 7,740,000 new text end	new text begin ..... new text end	new text begin 2008 new text end
	new text begin $ new text end	new text begin 8,600,000 new text end	new text begin ..... new text end	new text begin 2009 new text end

new text begin The 2008 appropriation includes $0 for fiscal year 2007 and $7,740,000 for fiscal
year 2008. The 2009 appropriation includes $860,000 for fiscal year 2008 and $7,740,000
for fiscal year 2009.
new text end

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

new text begin Subd. 15. new text end

new text begin Collaborative urban educator. new text end

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

	new text begin $ new text end	new text begin 1,301,000 new text end	new text begin ..... new text end	new text begin 2008 new text end
	new text begin $ new text end	new text begin 1,301,000 new text end	new text begin ..... new text end	new text begin 2009 new text end

new text begin $500,000 each year is for the Southeast Asian teacher program at Concordia
University, St. Paul; $400,000 each year is for the collaborative urban educator program at
the University of St. Thomas; and $400,000 each year is for the Center for Excellence in
Urban Teaching at Hamline University. Grant recipients must collaborate with urban and
nonurban school districts.
new text end

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

new text begin Subd. 16. new text end

new text begin Youth works program. new text end

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

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

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

new text begin Subd. 17. new text end

new text begin Early childhood literacy programs. new text end

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

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

new text begin $1,000,000 each year is for leveraging federal and private funding to support
AmeriCorps members serving in the Minnesota Reading Corps program established by
Serve Minnesota, including costs associated with the training and teaching of early literacy
skills to children age three to grade 3 and the evaluation of the impact of the program
under Minnesota Statutes, section 124D.42, subdivision 8.
new text end

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

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

new text begin Subd. 18. new text end

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

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

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

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

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

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

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

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

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

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

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

new text begin Subd. 19. new text end

new text begin Student organizations. new text end

new text begin For student organizations:
new text end

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

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

new text begin Subd. 20. new text end

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

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

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

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

new text begin Subd. 21. new text end

new text begin Education planning and assessment (EPAS) program. new text end

new text begin For the
educational planning and assessment (EPAS) program under Minnesota Statutes, section
120B.128:
new text end

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

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

new text begin The base for this program in fiscal year 2010 and later is $829,000.
new text end

new text begin Subd. 22. new text end

new text begin 21st century high schools. new text end

new text begin (a) For 21st century high schools:
new text end

	new text begin $ new text end	new text begin 1,920,000 new text end	new text begin ..... new text end	new text begin 2008 new text end
	new text begin $ new text end	new text begin 6,843,000 new text end	new text begin ..... new text end	new text begin 2009 new text end

new text begin (b) $1,000,000 in fiscal year 2008 is for grants for alternative school calendar pilot
programs under section 59. Grant funds may be used for pupil transportation costs.
new text end

new text begin (c) $6,443,000 in fiscal year 2009 is for Career and Technical Aid under Minnesota
Statutes, section 124D.4531. The 2009 appropriation includes $0 for fiscal year 2008 and
$6,443,000 for fiscal year 2009.
new text end

new text begin (d) $500,000 in fiscal year 2008 is for professional teacher licensure.
new text end

new text begin (e) $150,000 each year is for the quantum opportunities program.
new text end

new text begin (f) $250,000 each year is for world languages resources for developing and
implementing world languages programs.
new text end

new text begin (g) $20,000 in fiscal year 2008 is for the committee on American Indian education
under Minnesota Statutes, section 124D.805.
new text end

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

new text begin The base for this appropriation for fiscal year 2010 is $7,352,000 and $7,572,000
for fiscal year 2011.
new text end

new text begin Subd. 23. new text end

new text begin Minnesota teacher development. new text end

new text begin (a) Effective, well prepared, fully
engaged, and adequately supported kindergarten through grade 12 classroom teachers,
along with parents, are critical partners in helping the many diverse student populations
realize meaningful academic achievement. To afford students needed opportunities
to learn effectively without remediation; to acknowledge and reinforce the language
proficiency and cultural awareness that diverse language speakers possess; to encourage
students' proficiency in science, technology, mathematics, engineering, economics, civics,
and foreign languages; and to provide new and experienced teachers with sufficient staff
development resources and support to effectively work to close the student achievement
gap, the following resources are provided:
new text end

	new text begin $ new text end	new text begin 4,950,000 new text end	new text begin ..... new text end	new text begin 2008 new text end
	new text begin $ new text end	new text begin 4,000,000 new text end	new text begin ..... new text end	new text begin 2009 new text end

new text begin (b) $400,000 each year is for a grant to the Minnesota Humanities Commission
under Minnesota Statutes, section 138.911.
new text end

new text begin (c) $150,000 each year is for a grant to the Minnesota Historical Society.
new text end

new text begin (d) $400,000 each year is for the Principals' Leadership Institute under Minnesota
Statutes, section 122A.74. Any balance in the first year does not cancel but is available
in the second year.
new text end

new text begin (e) $1,300,000 each year is for teachers of color scholarships under Minnesota
Statutes, section 122A.633.
new text end

new text begin (f) $2,600,000 in fiscal year 2008 and $1,750,000 in fiscal year 2009 are for
professional development programs. Of this amount: $1,667,000 in fiscal year 2008 and
$1,125,000 in fiscal year 2009 are for grants for up to five teacher centers under Minnesota
Statutes, section 122A.72, subdivision 5, for the science, technology, engineering and
mathematics initiative including teacher workshops and expanded outreach programs
in classrooms; $333,000 in fiscal year 2008 and $225,000 in fiscal year 2009 are for
a grant to the Science Museum of Minnesota for the science, technology, engineering,
and mathematics initiative; $200,000 in fiscal year 2008 is for a grant to the Minnesota
Council on Economic Education for master teacher training in economics and personal
finance; and $400,000 each year is for teacher technology training grants under section 61.
new text end

new text begin (g) $100,000 in fiscal year 2008 is for a grant to the commissioner of education for a
grant to the Learning Law and Democracy Foundation for the development and electronic
collection, review, and distribution of educational materials supporting Minnesota's
kindergarten through grade 12 education standards for civics and government.
new text end

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

new text begin The base for the appropriations contained in this subdivision for fiscal year 2010 and
later is $800,000 per year.
new text end

Sec. 67. new text begin REPEALER.
new text end

new text begin Minnesota Statutes 2006, sections 121A.23; and 124D.62, new text end new text begin are repealed.
new text end

ARTICLE 3

SPECIAL PROGRAMS

Section 1.

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

Subdivision 1.

Definitions.

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

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

(1) the sum of:

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

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

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

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

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

(1) Regular transportation is:

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

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

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

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

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

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

(2) Excess transportation is:

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

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

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

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

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

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

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

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

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

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

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

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

(5) "Nonpublic nonregular transportation" is:

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

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

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

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

new text begin EFFECTIVE DATE. new text end

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

Sec. 2.

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

Subd. 2.

Definitions.

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

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

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

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

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

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

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

new text begin EFFECTIVE DATE. new text end

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

Sec. 3.

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

Subd. 3.

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

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

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

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

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

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

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

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

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

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

new text begin EFFECTIVE DATE. new text end

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

Sec. 4.

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

Subdivision 1.

Nonresident tuition rate; other costs.

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

(b) For fiscal year 2007 and later, when a school district provides special instruction
and services for a pupil with a disability as defined in section 125A.02 outside the district
of residence, excluding a pupil for whom an adjustment to special education aid is
calculated according to section 127A.47, subdivision 7, paragraph (e), special education
aid paid to the resident district must be reduced by an amount equal to (1) the actual
cost of providing special instruction and services to the pupil, including a proportionate
amount for special transportation and unreimbursed building lease and debt service costs
for facilities used primarily for special education, plus (2) the amount of general education
revenue and referendum new text begin equalization new text end aid attributable to that pupil, new text begin calculated using the
resident district's average general education revenue and referendum equalization aid
per adjusted pupil unit excluding basic skills revenue, elementary sparsity revenue and
secondary sparsity revenue, new text end minus (3) the amount of special education aid for children
with a disability received on behalf of that child, minus (4) if the pupil receives special
instruction and services outside the regular classroom for more than 60 percent of the
school day, the amount of general education revenue and referendum new text begin equalization new text end aid,
excluding portions attributable to district and school administration, district support
services, operations and maintenance, capital expenditures, and pupil transportation,
attributable to that pupil for the portion of time the pupil receives special instruction and
services outside of the regular classroom deleted text begin . General education revenue and referendum aid
attributable to a pupil must be calculated using the resident district's average general
education revenue and referendum aid per adjusted pupil unit deleted text end new text begin excluding basic skills
revenue, elementary sparsity revenue and secondary sparsity revenue and the serving
district's basic skills revenue, elementary sparsity revenue and secondary sparsity revenue
per adjusted pupil unit. Notwithstanding clauses (1) and (4), for pupils served by a
cooperative unit without a fiscal agent school district, the general education revenue and
referendum equalization aid attributable to a pupil must be calculated using the resident
district's average general education revenue and referendum equalization aid excluding
elementary sparsity revenue and secondary sparsity revenue new text end . Special education aid paid to
the district or cooperative providing special instruction and services for the pupil must be
increased by the amount of the reduction in the aid paid to the resident district. Amounts
paid to cooperatives under this subdivision and section 127A.47, subdivision 7, shall be
recognized and reported as revenues and expenditures on the resident school district's
books of account under sections 123B.75 and 123B.76. If the resident district's special
education aid is insufficient to make the full adjustment, the remaining adjustment shall be
made to other state aid due to the district.

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

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

new text begin EFFECTIVE DATE. new text end

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

Sec. 5.

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

125A.13 SCHOOL OF PARENTS' CHOICE.

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

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

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

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

Sec. 6.

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

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

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

Sec. 7.

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

new text begin Subd. 5. new text end

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

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

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

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

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

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

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

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

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

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

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

Sec. 8.

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

Subdivision 1.

Travel aid.

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

Sec. 9.

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

Subd. 4.

Program and aid approval.

Before June 1 of each year, each district
providing special instruction and services to children with a disability new text begin , including children
eligible for Part C, as defined in sections 125A.02, subdivision 1, and 125A.27, subdivision
8, new text end must submit to the commissioner an application for approval of these programs and their
budgets for the next fiscal year. The application must include an enumeration of the costs
proposed as eligible for state aid pursuant to this section and of the estimated number and
grade level of children with a disability in the district who will receive special instruction
and services deleted text begin during the regular school year and in summer school programs deleted text end during
the next fiscal year. The application must also include any other information deemed
necessary by the commissioner for the calculation of state aid and for the evaluation of the
necessity of the program, the necessity of the personnel to be employed in the program,
for determining the amount which the program will receive from grants from federal
funds, or special grants from other state sources, and the program's compliance with the
rules and standards of the Department of Education. The commissioner shall review each
application to determine whether the program and the personnel to be employed in the
program are actually necessary and essential to meet the district's obligation to provide
special instruction and services to children with a disability pursuant to sections 125A.03
to 125A.24, 125A.259 to 125A.48, and 125A.65. The commissioner shall not approve aid
pursuant to this section for any program or for the salary of any personnel determined to
be unnecessary or unessential on the basis of this review. The commissioner may withhold
all or any portion of the aid for programs which receive grants from federal funds, or
special grants from other state sources. By August 31 the commissioner shall approve,
disapprove, or modify each application, and notify each applying district of the action
and of the estimated amount of aid for the programs. The commissioner shall provide
procedures for districts to submit additional applications for program and budget approval
during the fiscal year, for programs needed to meet any substantial changes in the needs
of children with a disability in the district. Notwithstanding the provisions of section
127A.42, the commissioner may modify or withdraw the program or aid approval and
withhold aid pursuant to this section without proceeding according to section 127A.42
at any time the commissioner determines that the program does not comply with rules
of the Department of Education or that any facts concerning the program or its budget
differ from the facts in the district's approved application.

new text begin EFFECTIVE DATE. new text end

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

Sec. 10.

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

Subdivision 1.

Definitions.

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

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

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

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

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

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

new text begin EFFECTIVE DATE. new text end

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

Sec. 11.

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

Subd. 2.

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

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

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

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

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

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

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

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

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

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

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

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

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

Sec. 12.

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

Subd. 4.

State total special education aid.

deleted text begin The state total special education aid
for fiscal year 2004 equals $530,642,000. deleted text end The state total special education aid deleted text begin for fiscal
year 2005 deleted text end equals deleted text begin $529,164,000 deleted text end new text begin $572,297,000 for fiscal year 2008, $573,122,000 for fiscal
year 2009, $574,696,000 for fiscal year 2010, and $576,653,000 for fiscal year 2011 new text end . The
state total special education aid for later fiscal years equals:

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

(2) the program growth factor; times

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

new text begin EFFECTIVE DATE. new text end

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

Sec. 13.

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

Subd. 5.

School district special education aid.

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

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

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

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

new text begin EFFECTIVE DATE. new text end

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

Sec. 14.

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

new text begin Subd. 8. new text end

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

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

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

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

new text begin EFFECTIVE DATE. new text end

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

Sec. 15.

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

Subdivision 1.

Definitions.

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

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

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

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

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

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

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

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

(d) "Program growth factor" means 1.02 for fiscal year 2003, and 1.0 for fiscal
year 2004 and later.

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

Sec. 16.

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

Subd. 5.

Initial excess cost aid.

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

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

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

deleted text begin (3) deleted text end zero.

new text begin EFFECTIVE DATE. new text end

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

Sec. 17.

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

Subd. 6.

State total special education excess cost aid.

The state total special
education excess cost aid deleted text begin for fiscal year 2005 deleted text end equals deleted text begin $91,811,000 deleted text end new text begin $128,341,000 for fiscal
year 2008, $129,523,000 for fiscal year 2009, $129,801,000 for fiscal year 2010, and
$130,193,000 for fiscal year 2011 new text end . deleted text begin The state total special education excess cost aid equals
$103,600,000 for fiscal year 2006 and $104,700,000 for fiscal year 2007. deleted text end The state total
special education excess cost aid for deleted text begin fiscal year 2008 and deleted text end later fiscal years equals:

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

(2) the program growth factor; times

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

new text begin EFFECTIVE DATE. new text end

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

Sec. 18.

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

Subd. 8.

Out-of-state tuition.

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

new text begin EFFECTIVE DATE. new text end

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

Sec. 19.

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

Subd. 7.

Alternative attendance programs.

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

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

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

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

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

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

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

new text begin EFFECTIVE DATE. new text end

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

Sec. 20.

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

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

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

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

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

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

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

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

new text begin (d) Notwithstanding Minnesota Statutes, section 125A.11, subdivision 1, paragraphs
(a) and (b), and section 127A.47, subdivision 7, paragraphs (d) and (e), for fiscal year 2007
only, a school district or charter school not eligible for a waiver under Minnesota Statutes,
section 125A.11, subdivision 1, paragraph (d), may apply to the commissioner for authority
to charge the resident district an additional amount to recover any remaining unreimbursed
costs of serving pupils with a disability. The application must include a description of the
costs and the calculations used to determine the unreimbursed portion to be charged to the
resident district. Amounts approved by the commissioner under this paragraph must be
included in the tuition billings or aid adjustments under paragraph (a) or (b), or Minnesota
Statutes, section 127A.47, subdivision 7, paragraph (d) or (e), as applicable.
new text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 21. new text begin TASK FORCE TO COMPARE FEDERAL AND STATE SPECIAL
EDUCATION REQUIREMENTS.
new text end

new text begin Subdivision 1. new text end

new text begin Establishment; duties. new text end

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

new text begin Subd. 2. new text end

new text begin Report. new text end

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

new text begin EFFECTIVE DATE. new text end

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

Sec. 22. new text begin APPROPRIATIONS.
new text end

new text begin Subdivision 1. new text end

new text begin Department of Education. new text end

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

new text begin Subd. 2. new text end

new text begin Special education; regular. new text end

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

	new text begin $ new text end	new text begin 568,034,000 new text end	new text begin ..... new text end	new text begin 2008 new text end
	new text begin $ new text end	new text begin 573,040,000 new text end	new text begin ..... new text end	new text begin 2009 new text end

new text begin The 2008 appropriation includes $52,965,000 for 2007 and $515,069,000 for 2008.
new text end

new text begin The 2009 appropriation includes $57,228,000 for 2008 and $515,812,000 for 2009.
new text end

new text begin Subd. 3. new text end

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

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

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

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

new text begin Subd. 4. new text end

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

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

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

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

new text begin The 2009 appropriation includes $26,000 for 2008 and $258,000 for 2009.
new text end

new text begin Subd. 5. new text end

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

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

	new text begin $ new text end	new text begin 120,445,000 new text end	new text begin ..... new text end	new text begin 2008 new text end
	new text begin $ new text end	new text begin 129,128,000 new text end	new text begin ..... new text end	new text begin 2009 new text end

new text begin The 2008 appropriation includes $34,969,000 for 2007 and $85,476,000 for 2008.
new text end

new text begin The 2009 appropriation includes $42,865,000 for 2008 and $86,263,000 for 2009.
new text end

new text begin Subd. 6. new text end

new text begin Transition for disabled students. new text end

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

new text begin $ new text end

new text begin 879,000 new text end

new text begin ..... new text end

new text begin 2008 new text end

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

new text begin Subd. 7. new text end

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

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

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

new text begin Subd. 8. new text end

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

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

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

new text begin Subd. 9. new text end

new text begin Special education task force. new text end

new text begin For the commissioner to contract with the
Bureau of Mediation Services for costs related to the work of the special education task
force under section 21:
new text end

new text begin $ new text end

new text begin 20,000 new text end

new text begin ..... new text end

new text begin 2008 new text end

Sec. 23. new text begin REPEALER.
new text end

new text begin Minnesota Statutes 2006, sections 124D.454, subdivisions 4, 5, 6, and 7; 125A.10;
125A.75, subdivision 6; and 125A.76, subdivision 3, new text end new text begin are repealed effective for revenue
for fiscal year 2008.
new text end

ARTICLE 4

FACILITIES AND TECHNOLOGY

Section 1.

Minnesota Statutes 2006, section 123B.53, subdivision 1, is amended to read:

Subdivision 1.

Definitions.

(a) For purposes of this section, the eligible debt service
revenue of a district is defined as follows:

(1) the amount needed to produce between five and six percent in excess of the
amount needed to meet when due the principal and interest payments on the obligations
of the district for eligible projects according to subdivision 2, including the amounts
necessary for repayment of energy loans according to section 216C.37 or sections 298.292
to 298.298, debt service loans and capital loans, lease purchase payments under section
126C.40, subdivision 2, alternative facilities levies under section 123B.59, subdivision
5, new text begin paragraph (a), new text end minus

(2) the amount of debt service excess levy reduction for that school year calculated
according to the procedure established by the commissioner.

(b) The obligations in this paragraph are excluded from eligible debt service revenue:

(1) obligations under section 123B.61;

(2) the part of debt service principal and interest paid from the taconite environmental
protection fund or Douglas J. Johnson economic protection trust;

(3) obligations issued under Laws 1991, chapter 265, article 5, section 18, as
amended by Laws 1992, chapter 499, article 5, section 24; and

(4) obligations under section 123B.62.

(c) For purposes of this section, if a preexisting school district reorganized under
sections 123A.35 to 123A.43, 123A.46, and 123A.48 is solely responsible for retirement
of the preexisting district's bonded indebtedness, capital loans or debt service loans, debt
service equalization aid must be computed separately for each of the preexisting districts.

(d) For purposes of this section, the adjusted net tax capacity determined according
to section 127A.48 shall be adjusted to include a portion of the tax capacity of property
generally exempted from ad valorem taxes under section 272.02, subdivisions 64 and
65, equal to the product of that tax capacity times the ratio of the eligible debt service
revenue attributed to general obligation bonds to the total eligible debt service revenue
of the district.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxes payable in 2008.
new text end

Sec. 2.

Minnesota Statutes 2006, section 123B.53, subdivision 4, is amended to read:

Subd. 4.

Debt service equalization revenue.

deleted text begin (a) deleted text end The debt service equalization
revenue of a district equals the deleted text begin sum of the first tier debt service equalization revenue and
the second tier debt service equalization revenue.
deleted text end

deleted text begin (b) The first tier debt service equalization revenue of a district equals the deleted text end greater of
zero or the eligible debt service revenue minus the amount raised by a levy of 15 percent
times the adjusted new text begin debt service new text end net tax capacity of the district deleted text begin minus the second tier debt
service equalization revenue of the district deleted text end .

deleted text begin (c) The second tier debt service equalization revenue of a district equals the greater
of zero or the eligible debt service revenue, excluding alternative facilities levies under
section deleted text begin 123B.59, subdivision 5 deleted text end , minus the amount raised by a levy of 25 percent times the
adjusted net tax capacity of the district.
deleted text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for revenue for fiscal year 2009.
new text end

Sec. 3.

Minnesota Statutes 2006, section 123B.53, subdivision 5, is amended to read:

Subd. 5.

Equalized debt service levy.

deleted text begin (a) The equalized debt service levy of a
deleted text end deleted text begin district equals the sum of the first tier equalized debt service levy and the second tier
deleted text end deleted text begin equalized debt service levy.
deleted text end

deleted text begin (b) deleted text end A district's deleted text begin first tier deleted text end equalized debt service levy equals the district's deleted text begin first tier deleted text end debt
service equalization revenue times the lesser of one or the ratio of:

(1) the quotient derived by dividing the adjusted new text begin debt service new text end net tax capacity of the
district for the year before the year the levy is certified by the adjusted pupil units in the
district for the school year ending in the year prior to the year the levy is certified; to

(2) deleted text begin $3,200 deleted text end new text begin 100 percent of the statewide adjusted net tax capacity equalizing factor new text end .

deleted text begin (c) A district's second tier equalized debt service levy equals the district's second tier
debt service equalization revenue times the lesser of one or the ratio of:
deleted text end

deleted text begin (1) the quotient derived by dividing the adjusted net tax capacity of the district for
the year before the year the levy is certified by the adjusted pupil units in the district for
the school year ending in the year prior to the year the levy is certified; to
deleted text end

deleted text begin (2) $8,000.
deleted text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for revenue for fiscal year 2009.
new text end

Sec. 4.

Minnesota Statutes 2006, section 123B.54, is amended to read:

123B.54 DEBT SERVICE new text begin AND SCHOOL BOND AGRICULTURAL CREDIT
new text end APPROPRIATION.

(a) deleted text begin $21,624,000 deleted text end new text begin $14,813,000 new text end in fiscal year 2008 deleted text begin and $20,403,000 deleted text end new text begin , $26,100,000 new text end in
fiscal year 2009 new text begin , $29,816,000 in fiscal year 2010, and $30,538,000 in fiscal year 2011 new text end and
later are appropriated from the general fund to the commissioner of education for payment
of debt service equalization aid under section 123B.53.

new text begin (b) $10,000,000 in fiscal year 2009, $10,475,000 in fiscal year 2010, and
$10,948,000 in fiscal year 2011 and each year thereafter are appropriated from the general
fund to the commissioner of education for payment of school bond agricultural credit aid
under section 123B.555.
new text end

deleted text begin (b) deleted text end new text begin (c) new text end The appropriations in deleted text begin paragraph deleted text end new text begin paragraphs new text end (a) new text begin and (b) new text end must be reduced by
the amount of any money specifically appropriated for the same purpose in any year
from any state fund.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for revenue for fiscal year 2009.
new text end

Sec. 5.

new text begin [123B.555] SCHOOL BOND AGRICULTURAL CREDIT.
new text end

new text begin Subdivision 1. new text end

new text begin Eligibility. new text end

new text begin All class 2 property under section 273.13, subdivision 23,
except for (1) property consisting of the house, garage, and immediately surrounding one
acre of land of an agricultural homestead, and (2) property classified under section 273.13,
subdivision 23, paragraph (b), clause (4), is eligible to receive the credit under this section.
new text end

new text begin Subd. 2. new text end

new text begin Credit amount. new text end

new text begin For each qualifying property, the school bond agricultural
credit is equal to 20 percent of the property's eligible net tax capacity multiplied by the
school debt tax rate determined under section 275.08, subdivision 1b.
new text end

new text begin Subd. 3. new text end

new text begin Credit reimbursements. new text end

new text begin The county auditor shall determine the tax
reductions allowed under this section within the county for each taxes payable year and
shall certify that amount to the commissioner of revenue as a part of the abstracts of tax
lists submitted under section 275.29. Any prior year adjustments shall also be certified on
the abstracts of tax lists. The commissioner shall review the certifications for accuracy,
and may make such changes as are deemed necessary, or return the certification to the
county auditor for correction. The credit under this section must be used to reduce the
school district net tax capacity-based property tax as provided in section 273.1393.
new text end

new text begin Subd. 4. new text end

new text begin Payment. new text end

new text begin The commissioner of revenue shall certify the total of the tax
reductions granted under this section for each taxes payable year within each school
district to the commissioner of education, who shall pay the reimbursement amounts to
each school district as provided in section 273.1392.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxes payable in 2008.
new text end

Sec. 6.

Minnesota Statutes 2006, section 123B.57, subdivision 3, is amended to read:

Subd. 3.

Health and safety revenue.

A district's health and safety revenue
for a fiscal year equals new text begin the district's alternative facilities levy under section 123B.59,
subdivision 5, paragraph (b), plus the greater of zero or new text end :

(1) the sum of (a) the total approved cost of the district's hazardous substance
plan for fiscal years 1985 through 1989, plus (b) the total approved cost of the district's
health and safety program for fiscal year 1990 through the fiscal year to which the levy
is attributable, excluding expenditures funded with bonds issued under section 123B.59
or 123B.62, or chapter 475; certificates of indebtedness or capital notes under section
123B.61; levies under section 123B.58, 123B.59, 123B.63, or 126C.40, subdivision 1 or
6; and other federal, state, or local revenues, minus

(2) the sum of (a) the district's total hazardous substance aid and levy for fiscal years
1985 through 1989 under sections 124.245 and 275.125, subdivision 11c, plus (b) the
district's health and safety revenue under this subdivision, for years before the fiscal year
to which the levy is attributable.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for revenue for fiscal year 2009.
new text end

Sec. 7.

Minnesota Statutes 2006, section 123B.63, subdivision 3, is amended to read:

Subd. 3.

Capital project levy referendum.

A district may levy the local tax
rate approved by a majority of the electors voting on the question to provide funds for
an approved project. The election must take place no more than five years before the
estimated date of commencement of the project. The referendum must be held on a date
set by the board. A referendum for a project not receiving a positive review and comment
by the commissioner under section 123B.71 must be approved by at least 60 percent of the
voters at the election. The referendum may be called by the school board and may be held:

(1) separately, before an election for the issuance of obligations for the project
under chapter 475; or

(2) in conjunction with an election for the issuance of obligations for the project
under chapter 475; or

(3) notwithstanding section 475.59, as a conjunctive question authorizing both the
capital project levy and the issuance of obligations for the project under chapter 475. Any
obligations authorized for a project may be issued within five years of the date of the
election.

The ballot must provide a general description of the proposed project, state the
estimated total cost of the project, state whether the project has received a positive or
negative review and comment from the commissioner, state the maximum amount of the
capital project levy as a percentage of net tax capacity, state the amount that will be raised
by that local tax rate in the first year it is to be levied, and state the maximum number of
years that the levy authorization will apply.

The ballot must contain a textual portion with the information required in this
section and a question stating substantially the following:

"Shall the capital project levy proposed by the board of .......... School District
No. .......... be approved?"

If approved, the amount provided by the approved local tax rate applied to the net
tax capacity for the year preceding the year the levy is certified may be certified for the
number of years new text begin , not to exceed ten, new text end approved.

In the event a conjunctive question proposes to authorize both the capital project
levy and the issuance of obligations for the project, appropriate language authorizing the
issuance of obligations must also be included in the question.

The district must notify the commissioner of the results of the referendum.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2007, for elections conducted
on or after that day.
new text end

Sec. 8.

Minnesota Statutes 2006, section 126C.01, is amended by adding a subdivision
to read:

new text begin Subd. 2a. new text end

new text begin Statewide adjusted net tax capacity equalizing factor. new text end

new text begin The statewide
adjusted net tax capacity equalizing factor equals the quotient derived by dividing the total
adjusted net tax capacity of all school districts in the state for the year before the year
the levy is certified by the total number of adjusted pupil units in the state for the fiscal
year preceding the year the levy is certified.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxes payable in 2008.
new text end

Sec. 9.

Minnesota Statutes 2006, section 127A.48, is amended by adding a subdivision
to read:

new text begin Subd. 17. new text end

new text begin Adjusted debt service net tax capacity. new text end

new text begin To calculate each district's
adjusted debt service net tax capacity, the commissioner of revenue must recompute
the amounts in this section using an alternative sales ratio comparing the sales price to
the estimated market value of the property.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment for
computing taxes payable in 2008.
new text end

Sec. 10.

Minnesota Statutes 2006, section 128D.11, subdivision 3, is amended to read:

Subd. 3.

No election.

Subject to the provisions of subdivisions 7 to 10, the school
district may also by a two-thirds majority vote of all the members of its board of education
and without any election by the voters of the district, issue and sell in each calendar
year general obligation bonds of the district in an amount not to exceed 5-1/10 per cent
of the net tax capacity of the taxable property in the district (plus, for calendar years
1990 to 2003, an amount not to exceed $7,500,000, deleted text begin and deleted text end for calendar years 2004 to 2008
an amount not to exceed $15,000,000 new text begin , and for each calendar year after 2008, an amount
not to exceed $15,000,000 new text end ; with an additional provision that any amount of bonds so
authorized for sale in a specific year and not sold can be carried forward and sold in
the year immediately following).

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 11.

Minnesota Statutes 2006, section 273.11, subdivision 1a, is amended to read:

Subd. 1a.

Limited market value.

In the case of all property classified as
agricultural homestead or nonhomestead, residential homestead or nonhomestead, timber,
or noncommercial seasonal residential recreational, the assessor shall compare the value
with the taxable portion of the value determined in the preceding assessment.

For assessment years 2004, 2005, and 2006, the amount of the increase shall not
exceed the greater of (1) 15 percent of the value in the preceding assessment, or (2) 25
percent of the difference between the current assessment and the preceding assessment.

For assessment year 2007, the amount of the increase shall not exceed the greater of
(1) 15 percent of the value in the preceding assessment, or (2) 33 percent of the difference
between the current assessment and the preceding assessment.

For assessment year 2008, the amount of the increase shall not exceed the greater of
(1) 15 percent of the value in the preceding assessment, or (2) 50 percent of the difference
between the current assessment and the preceding assessment.

This limitation shall not apply to increases in value due to improvements. For
purposes of this subdivision, the term "assessment" means the value prior to any exclusion
under subdivision 16.

The provisions of this subdivision shall be in effect through assessment year 2008
as provided in this subdivision.

For purposes of the assessment/sales ratio study conducted under section 127A.48,
and the computation of state aids paid under chapters 122A, 123A, 123B, new text begin excluding
section , new text end 124D, 125A, 126C, 127A, and 477A, market values and net tax
capacities determined under this subdivision and subdivision 16, shall be used.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment for
computing taxes payable in 2008.
new text end

Sec. 12.

Minnesota Statutes 2006, section 273.1393, is amended to read:

273.1393 COMPUTATION OF NET PROPERTY TAXES.

Notwithstanding any other provisions to the contrary, "net" property taxes are
determined by subtracting the credits in the order listed from the gross tax:

(1) disaster credit as provided in section 273.123;

(2) powerline credit as provided in section 273.42;

(3) agricultural preserves credit as provided in section 473H.10;

(4) enterprise zone credit as provided in section 469.171;

(5) disparity reduction credit;

(6) conservation tax credit as provided in section 273.119;

(7) homestead and agricultural credits as provided in section 273.1384;

new text begin (8) school bond agricultural credit as provided in section 123B.555;
new text end

deleted text begin (8) deleted text end new text begin (9) new text end taconite homestead credit as provided in section 273.135; and

deleted text begin (9) deleted text end new text begin (10) new text end supplemental homestead credit as provided in section 273.1391.

The combination of all property tax credits must not exceed the gross tax amount.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxes payable in 2008.
new text end

Sec. 13.

Minnesota Statutes 2006, section 275.065, subdivision 3, is amended to read:

Subd. 3.

Notice of proposed property taxes.

(a) The county auditor shall prepare
and the county treasurer shall deliver after November 10 and on or before November 24
each year, by first class mail to each taxpayer at the address listed on the county's current
year's assessment roll, a notice of proposed property taxes.

(b) The commissioner of revenue shall prescribe the form of the notice.

(c) The notice must inform taxpayers that it contains the amount of property taxes
each taxing authority proposes to collect for taxes payable the following year. In the case
of a town, or in the case of the state general tax, the final tax amount will be its proposed
tax. In the case of taxing authorities required to hold a public meeting under subdivision 6,
the notice must clearly state that each taxing authority, including regional library districts
established under section 134.201, and including the metropolitan taxing districts as
defined in paragraph (i), but excluding all other special taxing districts and towns, will
hold a public meeting to receive public testimony on the proposed budget and proposed or
final property tax levy, or, in case of a school district, on the current budget and proposed
property tax levy. It must clearly state the time and place of each taxing authority's
meeting, a telephone number for the taxing authority that taxpayers may call if they have
questions related to the notice, and an address where comments will be received by mail.

(d) The notice must state for each parcel:

(1) the market value of the property as determined under section 273.11, and used
for computing property taxes payable in the following year and for taxes payable in the
current year as each appears in the records of the county assessor on November 1 of the
current year; and, in the case of residential property, whether the property is classified as
homestead or nonhomestead. The notice must clearly inform taxpayers of the years to
which the market values apply and that the values are final values;

(2) the items listed below, shown separately by county, city or town, and state
general tax, net of the residential and agricultural homestead credit under section 273.1384 new text begin
and the school bond agricultural credit under section 123B.555 new text end , voter approved school
levy, other local school levy, and the sum of the special taxing districts, and as a total
of all taxing authorities:

(i) the actual tax for taxes payable in the current year; and

(ii) the proposed tax amount.

If the county levy under clause (2) includes an amount for a lake improvement
district as defined under sections 103B.501 to 103B.581, the amount attributable for that
purpose must be separately stated from the remaining county levy amount.

In the case of a town or the state general tax, the final tax shall also be its proposed
tax unless the town changes its levy at a special town meeting under section 365.52. If a
school district has certified under section 126C.17, subdivision 9, that a referendum will
be held in the school district at the November general election, the county auditor must
note next to the school district's proposed amount that a referendum is pending and that,
if approved by the voters, the tax amount may be higher than shown on the notice. In
the case of the city of Minneapolis, the levy for the Minneapolis Library Board and the
levy for Minneapolis Park and Recreation shall be listed separately from the remaining
amount of the city's levy. In the case of the city of St. Paul, the levy for the St. Paul
Library Agency must be listed separately from the remaining amount of the city's levy.
In the case of Ramsey County, any amount levied under section 134.07 may be listed
separately from the remaining amount of the county's levy. In the case of a parcel where
tax increment or the fiscal disparities areawide tax under chapter 276A or 473F applies,
the proposed tax levy on the captured value or the proposed tax levy on the tax capacity
subject to the areawide tax must each be stated separately and not included in the sum of
the special taxing districts; and

(3) the increase or decrease between the total taxes payable in the current year and
the total proposed taxes, expressed as a percentage.

For purposes of this section, the amount of the tax on homesteads qualifying under
the senior citizens' property tax deferral program under chapter 290B is the total amount
of property tax before subtraction of the deferred property tax amount.

(e) The notice must clearly state that the proposed or final taxes do not include
the following:

(1) special assessments;

(2) levies approved by the voters after the date the proposed taxes are certified,
including bond referenda and school district levy referenda;

(3) a levy limit increase approved by the voters by the first Tuesday after the first
Monday in November of the levy year as provided under section 275.73;

(4) amounts necessary to pay cleanup or other costs due to a natural disaster
occurring after the date the proposed taxes are certified;

(5) amounts necessary to pay tort judgments against the taxing authority that become
final after the date the proposed taxes are certified; and

(6) the contamination tax imposed on properties which received market value
reductions for contamination.

(f) Except as provided in subdivision 7, failure of the county auditor to prepare or
the county treasurer to deliver the notice as required in this section does not invalidate the
proposed or final tax levy or the taxes payable pursuant to the tax levy.

(g) If the notice the taxpayer receives under this section lists the property as
nonhomestead, and satisfactory documentation is provided to the county assessor by the
applicable deadline, and the property qualifies for the homestead classification in that
assessment year, the assessor shall reclassify the property to homestead for taxes payable
in the following year.

(h) In the case of class 4 residential property used as a residence for lease or rental
periods of 30 days or more, the taxpayer must either:

(1) mail or deliver a copy of the notice of proposed property taxes to each tenant,
renter, or lessee; or

(2) post a copy of the notice in a conspicuous place on the premises of the property.

The notice must be mailed or posted by the taxpayer by November 27 or within
three days of receipt of the notice, whichever is later. A taxpayer may notify the county
treasurer of the address of the taxpayer, agent, caretaker, or manager of the premises to
which the notice must be mailed in order to fulfill the requirements of this paragraph.

(i) For purposes of this subdivision, subdivisions 5a and 6, "metropolitan special
taxing districts" means the following taxing districts in the seven-county metropolitan area
that levy a property tax for any of the specified purposes listed below:

(1) Metropolitan Council under section 473.132, 473.167, 473.249, 473.325,
473.446, 473.521, 473.547, or 473.834;

(2) Metropolitan Airports Commission under section 473.667, 473.671, or 473.672;
and

(3) Metropolitan Mosquito Control Commission under section 473.711.

For purposes of this section, any levies made by the regional rail authorities in the
county of Anoka, Carver, Dakota, Hennepin, Ramsey, Scott, or Washington under chapter
398A shall be included with the appropriate county's levy and shall be discussed at that
county's public hearing.

(j) The governing body of a county, city, or school district may, with the consent
of the county board, include supplemental information with the statement of proposed
property taxes about the impact of state aid increases or decreases on property tax
increases or decreases and on the level of services provided in the affected jurisdiction.
This supplemental information may include information for the following year, the current
year, and for as many consecutive preceding years as deemed appropriate by the governing
body of the county, city, or school district. It may include only information regarding:

(1) the impact of inflation as measured by the implicit price deflator for state and
local government purchases;

(2) population growth and decline;

(3) state or federal government action; and

(4) other financial factors that affect the level of property taxation and local services
that the governing body of the county, city, or school district may deem appropriate to
include.

The information may be presented using tables, written narrative, and graphic
representations and may contain instruction toward further sources of information or
opportunity for comment.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxes payable in 2008.
new text end

Sec. 14.

Minnesota Statutes 2006, section 275.07, subdivision 2, is amended to read:

Subd. 2.

School district deleted text begin in more than one county deleted text end new text begin levies; special requirements new text end .

new text begin (a)
new text end In school districts lying in more than one county, the clerk shall certify the tax levied to the
auditor of the county in which the administrative offices of the school district are located.

new text begin (b) The clerk shall identify the portion of the school district levy that is levied for the
purposes specified in section 123B.53, subdivision 5, as the school debt levy at the time
that the levy is certified under this section.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxes payable in 2008.
new text end

Sec. 15.

Minnesota Statutes 2006, section 275.08, subdivision 1b, is amended to read:

Subd. 1b.

Computation of tax rates.

new text begin (a) new text end The amounts certified to be levied against
net tax capacity under section 275.07 by an individual local government unit shall be
divided by the total net tax capacity of all taxable properties within the local government
unit's taxing jurisdiction. The resulting ratio, the local government's local tax rate,
multiplied by each property's net tax capacity shall be each property's net tax capacity tax
for that local government unit before reduction by any credits.

new text begin (b) The auditor shall also determine the school debt tax rate for each school district
equal to the school debt levy certified under section 275.07 divided by the total net tax
capacity of all taxable property within the district.
new text end

new text begin (c) new text end Any amount certified to the county auditor to be levied against market value shall
be divided by the total referendum market value of all taxable properties within the taxing
district. The resulting ratio, the taxing district's new referendum tax rate, multiplied by
each property's referendum market value shall be each property's new referendum tax
before reduction by any credits. For the purposes of this subdivision, "referendum market
value" means the market value as defined in section 126C.01, subdivision 3.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxes payable in 2008.
new text end

Sec. 16.

Minnesota Statutes 2006, section 276.04, subdivision 2, is amended to read:

Subd. 2.

Contents of tax statements.

(a) The treasurer shall provide for the
printing of the tax statements. The commissioner of revenue shall prescribe the form
of the property tax statement and its contents. The statement must contain a tabulated
statement of the dollar amount due to each taxing authority and the amount of the state
tax from the parcel of real property for which a particular tax statement is prepared. The
dollar amounts attributable to the county, the state tax, the voter approved school tax, the
other local school tax, the township or municipality, and the total of the metropolitan
special taxing districts as defined in section 275.065, subdivision 3, paragraph (i), must
be separately stated. The amounts due all other special taxing districts, if any, may be
aggregated except that any levies made by the regional rail authorities in the county of
Anoka, Carver, Dakota, Hennepin, Ramsey, Scott, or Washington under chapter 398A
shall be listed on a separate line directly under the appropriate county's levy. If the county
levy under this paragraph includes an amount for a lake improvement district as defined
under sections 103B.501 to 103B.581, the amount attributable for that purpose must be
separately stated from the remaining county levy amount. In the case of Ramsey County,
if the county levy under this paragraph includes an amount for public library service
under section 134.07, the amount attributable for that purpose may be separated from the
remaining county levy amount. The amount of the tax on homesteads qualifying under the
senior citizens' property tax deferral program under chapter 290B is the total amount of
property tax before subtraction of the deferred property tax amount. The amount of the
tax on contamination value imposed under sections 270.91 to 270.98, if any, must also
be separately stated. The dollar amounts, including the dollar amount of any special
assessments, may be rounded to the nearest even whole dollar. For purposes of this section
whole odd-numbered dollars may be adjusted to the next higher even-numbered dollar.
The amount of market value excluded under section 273.11, subdivision 16, if any, must
also be listed on the tax statement.

(b) The property tax statements for manufactured homes and sectional structures
taxed as personal property shall contain the same information that is required on the
tax statements for real property.

(c) Real and personal property tax statements must contain the following information
in the order given in this paragraph. The information must contain the current year tax
information in the right column with the corresponding information for the previous year
in a column on the left:

(1) the property's estimated market value under section 273.11, subdivision 1;

(2) the property's taxable market value after reductions under section 273.11,
subdivisions 1a and 16;

(3) the property's gross tax, calculated by adding the property's total property tax to
the sum of the aids enumerated in clause (4);

(4) a total of the following aids:

(i) education aids payable under chapters 122A, 123A, 123B, 124D, 125A, 126C,
and 127A;

(ii) local government aids for cities, towns, and counties under sections 477A.011 to
477A.04; and

(iii) disparity reduction aid under section 273.1398;

(5) for homestead residential and agricultural properties, the credits under deleted text begin section deleted text end new text begin
sections 123B.555 and new text end 273.1384;

(6) any credits received under sections 273.119; 273.123; 273.135; 273.1391;
273.1398, subdivision 4; 469.171; and 473H.10, except that the amount of credit received
under section 273.135 must be separately stated and identified as "taconite tax relief"; and

(7) the net tax payable in the manner required in paragraph (a).

(d) If the county uses envelopes for mailing property tax statements and if the county
agrees, a taxing district may include a notice with the property tax statement notifying
taxpayers when the taxing district will begin its budget deliberations for the current
year, and encouraging taxpayers to attend the hearings. If the county allows notices to
be included in the envelope containing the property tax statement, and if more than
one taxing district relative to a given property decides to include a notice with the tax
statement, the county treasurer or auditor must coordinate the process and may combine
the information on a single announcement.

The commissioner of revenue shall certify to the county auditor the actual or
estimated aids enumerated in paragraph (c), clause (4), that local governments will receive
in the following year. The commissioner must certify this amount by January 1 of each
year.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxes payable in 2008.
new text end

Sec. 17. new text begin SCHOOL TECHNOLOGY AID.
new text end

new text begin Subdivision 1. new text end

new text begin Advisory task force established. new text end

new text begin An advisory task force on school
technology standards is established to develop and recommend to the commissioner of
education and the education policy and finance committees of the legislature school
technology standards and systems. At a minimum, the advisory task force must propose:
new text end

new text begin (1) minimum standards for technology infrastructure and capacity;
new text end

new text begin (2) standards for local and state online student assessments;
new text end

new text begin (3) standards for electronic student records;
new text end

new text begin (4) school interoperability frameworks;
new text end

new text begin (5) policies and procedures that ensure instructional resource availability to help
students successfully achieve education excellence and state standards;
new text end

new text begin (6) databases that are accessible to and within each district and on the Internet;
new text end

new text begin (7) policies, procedures, and systems that stimulate and promote teacher and student
curriculum and learning collaboration;
new text end

new text begin (8) uniform technology standards;
new text end

new text begin (9) adequate Internet and bandwith capacity; and
new text end

new text begin (10) the Department of Education data collection procedures under each of the
department's major data reporting systems, and recommendations for streamlining the
reporting of school district data and eliminating duplication.
new text end

new text begin Subd. 2. new text end

new text begin Advisory task force members. new text end

new text begin (a) The commissioner of education shall
appoint as members to the advisory task force a representative from each of the following:
new text end

new text begin (1) one member from the Department of Education who shall serve as chair;
new text end

new text begin (2) one member from the Office of Enterprise Technology;
new text end

new text begin (3) one member from a list of school technology experts submitted to the
commissioner by Education Minnesota;
new text end

new text begin (4) one member from a list of school technology experts submitted to the
commissioner by the Minnesota School Boards Association;
new text end

new text begin (5) one member from a list of school technology experts submitted to the
commissioner by the Association of Metropolitan School Districts;
new text end

new text begin (6) one member from a list of school technology experts submitted to the
commissioner by the Minnesota Rural Education Association;
new text end

new text begin (7) one member from a list of school technology experts submitted to the
commissioner by the Schools for Equity in Education;
new text end

new text begin (8) one member from a list of school technology experts submitted to the
commissioner by the service cooperatives;
new text end

new text begin (9) one member from a list of school technology experts submitted to the
commissioner by the Minnesota Association of School Administrators;
new text end

new text begin (10) one member from a list of school technology experts submitted to the
commissioner by Minnesota Educational Media Organization;
new text end

new text begin (11) one member from a list of school technology experts submitted to the
commissioner by the Minnesota State Colleges and Universities;
new text end

new text begin (12) one member from a list of school technology experts submitted to the
commissioner by the president of the University of Minnesota; and
new text end

new text begin (13) one member from a list of technology experts submitted to the commissioner
by the online advisory council.
new text end

new text begin (b) The commissioner of education shall provide needed materials and assistance to
the task force upon request.
new text end

new text begin (c) Advisory task force members' terms and other task force matters are subject to
Minnesota Statutes, section 15.059. The advisory task force must submit by February 15,
2008, to the commissioner of education and the education policy and finance committees
of the legislature a written report that includes the recommendations under subdivision 1.
new text end

new text begin (d) The advisory task force expires on February 16, 2008.
new text end

new text begin Subd. 3. new text end

new text begin Funding. new text end

new text begin A school technology funding program is established to assist
school districts, consortiums of school districts, and charter schools to achieve the school
technology standards proposed in subdivision 1.
new text end

new text begin School technology aid equals $30 times the district's adjusted marginal cost pupil
units for fiscal year 2009.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 18. new text begin ADMINISTRATIVE LEASE LEVY; SPRING LAKE PARK.
new text end

new text begin Notwithstanding the instructional purposes limitation of Minnesota Statutes, section
126C.40, subdivision 1, Independent School District No. 16, Spring Lake Park, may lease
a building for administrative purposes and include the lease under Minnesota Statutes,
section 126C.40, subdivision 1.
new text end

Sec. 19. new text begin BONDING AUTHORIZATION.
new text end

new text begin To provide funds for the acquisition or betterment of school facilities, Independent
School District No. 625, St. Paul, may by two-thirds majority vote of all the members
of the board of directors issue general obligation bonds in one or more series for each
calendar year following 2008, as provided in this section. The aggregate principal
amount of any bonds issued under this section for each calendar year must not exceed
$15,000,000. Issuance of the bonds is not subject to Minnesota Statutes, section 475.58 or
475.59. The bonds must otherwise be issued as provided in Minnesota Statutes, chapter
475. The authority to issue bonds under this section is in addition to any bonding authority
authorized by Minnesota Statutes, chapter 123B, or other law. The amount of bonding
authority authorized under this section must be disregarded in calculating the bonding
limit of Minnesota Statutes, chapter 123B, or any other law other than Minnesota Statutes,
section 475.53, subdivision 4.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 20. new text begin TAX LEVY FOR DEBT SERVICE.
new text end

new text begin To pay the principal of and interest on bonds issued under section 19, Independent
School District No. 625, St. Paul, must levy a tax annually in an amount sufficient
under Minnesota Statutes, section 475.61, subdivisions 1 and 3, to pay the principal of
and interest on the bonds. The tax authorized under this section is in addition to the
taxes authorized to be levied under Minnesota Statutes, chapter 123B, 124D, or 126C, or
other law.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 21. new text begin APPROPRIATIONS.
new text end

new text begin Subdivision 1. new text end

new text begin Department of Education. new text end

new text begin The sums indicated in this section are
appropriated from the general fund to the Department of Education for the fiscal years
designated.
new text end

new text begin Subd. 2. new text end

new text begin Health and safety revenue. new text end

new text begin For health and safety aid according to
Minnesota Statutes, section 123B.57, subdivision 5:
new text end

	new text begin $ new text end	new text begin 190,000 new text end	new text begin ..... new text end	new text begin 2008 new text end
	new text begin $ new text end	new text begin 179,000 new text end	new text begin ..... new text end	new text begin 2009 new text end

new text begin The 2008 appropriation includes $20,000 for 2007 and $170,000 for 2008.
new text end

new text begin The 2009 appropriation includes $18,000 for 2008 and $161,000 for 2009.
new text end

new text begin Subd. 3. new text end

new text begin Debt service equalization. new text end

new text begin For debt service aid according to Minnesota
Statutes, section 123B.53, subdivision 6:
new text end

	new text begin $ new text end	new text begin 14,813,000 new text end	new text begin ..... new text end	new text begin 2008 new text end
	new text begin $ new text end	new text begin 26,100,000 new text end	new text begin ..... new text end	new text begin 2009 new text end

new text begin The 2008 appropriation includes $1,767,000 for 2007 and $13,046,000 for 2008.
new text end

new text begin The 2009 appropriation includes $1,450,000 for 2008 and $24,650,000 for 2009.
new text end

new text begin Subd. 4. new text end

new text begin School bond agricultural credit aid. new text end

new text begin For school bond agricultural credit
aid:
new text end

new text begin $ new text end

new text begin 10,000,000 new text end

new text begin ..... new text end

new text begin 2009 new text end

new text begin Subd. 5. new text end

new text begin Alternative facilities bonding aid. new text end

new text begin For alternative facilities bonding aid,
according to Minnesota Statutes, section 123B.59, subdivision 1:
new text end

	new text begin $ new text end	new text begin 19,287,000 new text end	new text begin ..... new text end	new text begin 2008 new text end
	new text begin $ new text end	new text begin 19,287,000 new text end	new text begin ..... new text end	new text begin 2009 new text end

new text begin The 2008 appropriation includes $1,928,000 for 2007 and $17,359,000 for 2008.
new text end

new text begin The 2009 appropriation includes $1,928,000 for 2008 and $17,359,000 for 2009.
new text end

new text begin Subd. 6. new text end

new text begin Equity in telecommunications access. new text end

new text begin For equity in telecommunications
access:
new text end

	new text begin $ new text end	new text begin 7,622,000 new text end	new text begin ..... new text end	new text begin 2008 new text end
	new text begin $ new text end	new text begin 8,743,000 new text end	new text begin ..... new text end	new text begin 2009 new text end

new text begin If the appropriation amount is insufficient, the commissioner shall reduce the
reimbursement rate in Minnesota Statutes, section 125B.26, subdivisions 4 and 5, and the
revenue for fiscal years 2008 and 2009 shall be prorated.
new text end

new text begin Any balance in the first year does not cancel but is available in the second year.
new text end

new text begin The base appropriation for fiscal year 2010 and later is $3,750,000.
new text end

new text begin Subd. 7. new text end

new text begin Deferred maintenance aid. new text end

new text begin For deferred maintenance aid, according to
Minnesota Statutes, section 123B.591, subdivision 4:
new text end

	new text begin $ new text end	new text begin 3,290,000 new text end	new text begin ..... new text end	new text begin 2008 new text end
	new text begin $ new text end	new text begin 2,667,000 new text end	new text begin ..... new text end	new text begin 2009 new text end

new text begin The 2008 appropriation includes $0 for 2007 and $3,290,000 for 2008.
new text end

new text begin The 2009 appropriation includes $365,000 for 2008 and $2,302,000 for 2009.
new text end

new text begin Subd. 8. new text end

new text begin Red Lake security reimbursement aid. new text end

new text begin For Independent School District
No. 38, Red Lake, for onetime security reimbursement aid to improve infrastructure needs
in the Red Lake School District as a result of the March 21, 2005, school shooting:
new text end

new text begin $ new text end

new text begin 132,000 new text end

new text begin ..... new text end

new text begin 2008 new text end

new text begin This is a onetime appropriation.
new text end

new text begin Subd. 9. new text end

new text begin Rocori school district. new text end

new text begin For Rocori, Independent School District No.
750, for Project Serv:
new text end

new text begin $ new text end

new text begin 53,000 new text end

new text begin ..... new text end

new text begin 2008 new text end

new text begin Subd. 10. new text end

new text begin School technology grants. new text end

new text begin For school technology grants under section
17:
new text end

new text begin $ new text end

new text begin 29,100,000 new text end

new text begin ..... new text end

new text begin 2009 new text end

new text begin This is a onetime appropriation.
new text end

new text begin Subd. 11. new text end

new text begin School Technology Advisory Task Force expenses. new text end

new text begin For expenses of the
School Technology Advisory Task Force under section 17:
new text end

new text begin $ new text end

new text begin 20,000 new text end

new text begin ..... new text end

new text begin 2008 new text end

new text begin This is a onetime appropriation.
new text end

new text begin Subd. 12. new text end

new text begin Eden Valley-Watkins; environmental remediation. new text end

new text begin For a grant to
Independent School District No. 463, Eden Valley-Watkins, to recover the amount actually
spent on environmental remediation efforts related to the cleanup of a mercury spill.
new text end

new text begin $ new text end

new text begin 126,000 new text end

new text begin ..... new text end

new text begin 2008 new text end

ARTICLE 5

NUTRITION AND ACCOUNTING

Section 1.

Minnesota Statutes 2006, section 123B.10, subdivision 1, is amended to read:

Subdivision 1.

Budgets.

Every board must publish revenue and expenditure
budgets for the current year and the actual revenues, expenditures, fund balances for
the prior year and projected fund balances for the current year in a form prescribed by
the commissioner within one week of the acceptance of the final audit by the board,
or November 30, whichever is earlier. The forms prescribed must be designed so that
year to year comparisons of revenue, expenditures and fund balances can be made.
deleted text begin These budgets, reports of revenue, expenditures and fund balances must be published in
a qualified newspaper of general circulation in the district or on the district's official
Web site. If published on the district's official Web site, the district must also publish an
announcement in a qualified newspaper of general circulation in the district that includes
the Internet address where the information has been posted.
deleted text end

Sec. 2.

Minnesota Statutes 2006, section 123B.10, is amended by adding a subdivision
to read:

new text begin Subd. 1a. new text end

new text begin Form of notification. new text end

new text begin A school board annually must notify the public of
its revenue, expenditures, fund balances, and other relevant budget information. The board
must include the budget information required by this section in the materials provided
as a part of its truth in taxation hearing, post the materials in a conspicuous place on
the district's official Web site, including a link to the district's school report card on the
Department of Education's Web site, and publish the information in a qualified newspaper
of general circulation in the district.
new text end

Sec. 3.

Minnesota Statutes 2006, section 123B.143, subdivision 1, is amended to read:

Subdivision 1.

Contract; duties.

All districts maintaining a classified secondary
school must employ a superintendent who shall be an ex officio nonvoting member of the
school board. The authority for selection and employment of a superintendent must be
vested in the board in all cases. An individual employed by a board as a superintendent
shall have an initial employment contract for a period of time no longer than three years
from the date of employment. Any subsequent employment contract must not exceed a
period of three years. A board, at its discretion, may or may not renew an employment
contract. A board must not, by action or inaction, extend the duration of an existing
employment contract. Beginning 365 days prior to the expiration date of an existing
employment contract, a board may negotiate and enter into a subsequent employment
contract to take effect upon the expiration of the existing contract. A subsequent contract
must be contingent upon the employee completing the terms of an existing contract. If a
contract between a board and a superintendent is terminated prior to the date specified in
the contract, the board may not enter into another superintendent contract with that same
individual that has a term that extends beyond the date specified in the terminated contract.
A board may terminate a superintendent during the term of an employment contract for any
of the grounds specified in section 122A.40, subdivision 9 or 13. A superintendent shall
not rely upon an employment contract with a board to assert any other continuing contract
rights in the position of superintendent under section 122A.40. Notwithstanding the
provisions of sections 122A.40, subdivision 10 or 11, 123A.32, 123A.75, or any other law
to the contrary, no individual shall have a right to employment as a superintendent based
on order of employment in any district. If two or more districts enter into an agreement for
the purchase or sharing of the services of a superintendent, the contracting districts have
the absolute right to select one of the individuals employed to serve as superintendent
in one of the contracting districts and no individual has a right to employment as the
superintendent to provide all or part of the services based on order of employment in a
contracting district. The superintendent of a district shall perform the following:

(1) visit and supervise the schools in the district, report and make recommendations
about their condition when advisable or on request by the board;

(2) recommend to the board employment and dismissal of teachers;

(3) superintend school grading practices and examinations for promotions;

(4) make reports required by the commissioner; new text begin and
new text end

(5) deleted text begin by January 10, submit an annual report to the commissioner in a manner
prescribed by the commissioner, in consultation with school districts, identifying the
expenditures that the district requires to ensure an 80 percent student passage rate on the
basic standards test taken in the eighth grade, identifying the highest student passage
rate the district expects it will be able to attain on the basic standards test by grade 12,
the amount of expenditures that the district requires to attain the targeted student passage
rate, and how much the district is cross-subsidizing programs with special education, basic
skills, and general education revenue; and
deleted text end

deleted text begin (6) deleted text end perform other duties prescribed by the board.

Sec. 4.

Minnesota Statutes 2006, section 123B.77, subdivision 4, is amended to read:

Subd. 4.

Budget approval.

Prior to July 1 of each year, the board of each district
must approve and adopt its revenue and expenditure budgets for the next school year.
The budget document so adopted must be considered an expenditure-authorizing or
appropriations document. No funds shall be expended by any board or district for any
purpose in any school year prior to the adoption of the budget document which authorizes
that expenditure, or prior to an amendment to the budget document by the board to
authorize the expenditure. Expenditures of funds in violation of this subdivision shall be
considered unlawful expenditures. deleted text begin Prior to the appropriation of revenue for the next
school year in the initial budget, the board shall inform the principal or other responsible
administrative authority of each site of the amount of general education and referendum
revenue that the Department of Education estimates will be generated by the pupils
in attendance at each site. For purposes of this subdivision, a district may adjust the
department's estimates for school building openings, school building closings, changes
in attendance area boundaries, or other changes in programs or student demographics
not reflected in the department's calculations. A district must report to the department
any adjustments it makes according to this subdivision in the department's estimates
of compensatory revenue generated by the pupils in attendance at each site, and the
department must use the adjusted compensatory revenue estimates in preparing the report
required under section 123B.76, subdivision 3, paragraph (c). deleted text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2007.
new text end

Sec. 5.

Minnesota Statutes 2006, section 123B.79, subdivision 8, is amended to read:

Subd. 8.

Account transfer for reorganizing districts.

A district that has
reorganized according to sections 123A.35 to 123A.43, 123A.46, or 123A.48, or has
conducted a successful referendum on the question of combination under section
123A.37, subdivision 2, or consolidation under section 123A.48, subdivision 15, or has
been assigned an identification number by the commissioner under section 123A.48,
subdivision 16, may make permanent transfers between any of the funds new text begin or accounts new text end in
the newly created or enlarged district with the exception of the debt redemption fund,
food service fund, and health and safety account of the capital expenditure fund. Fund
transfers under this section may be made for up to one year prior to the effective date of
combination or consolidation new text begin by the consolidating boards new text end and during the year following
the effective date of reorganization new text begin by the consolidated board. The newly formed board of
the combined district may adopt a resolution on or before August 30 of the year of the
reorganization authorizing a transfer among accounts or funds of the previous independent
school districts which transfer or transfers shall be reported in the affected districts'
audited financial statements for the year immediately preceding the consolidation new text end .

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2007.
new text end

Sec. 6.

Minnesota Statutes 2006, section 123B.79, is amended by adding a subdivision
to read:

new text begin Subd. 9. new text end

new text begin Elimination of reserve accounts. new text end

new text begin A school board shall eliminate all
reserve accounts established in the school district's general fund under Minnesota Statutes
before July 1, 2006, for which no specific authority remains in statute as of June 30,
2007. Any balance in the district's reserved for bus purchases account as of June 30,
2007, shall be transferred to the reserved account for operating capital in the school
district's general fund. Any balance in other reserved accounts established in the school
district's general fund under Minnesota Statutes before July 1, 2006, for which no specific
authority remains in statute as of June 30, 2007, shall be transferred to the school district's
unreserved general fund balance. A school board may, upon adoption of a resolution by
the school board, establish a designated account for any program for which a reserved
account has been eliminated.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective June 30, 2007.
new text end

Sec. 7.

Minnesota Statutes 2006, section 124D.111, subdivision 1, is amended to read:

Subdivision 1.

School lunch aid computation.

Each school year, the state must pay
participants in the national school lunch program the amount of cents for each full
paid, reduced, and free student lunch served to students.

Sec. 8.

Minnesota Statutes 2006, section 126C.15, subdivision 2, is amended to read:

Subd. 2.

Building allocation.

(a) A district must allocate its compensatory revenue
to each school building in the district where the children who have generated the revenue
are served unless the school district has received permission under section 50 to allocate
compensatory revenue according to student performance measures developed by the
school board.

(b) Notwithstanding paragraph (a), a district may allocate up to five percent of the
amount of compensatory revenue that the district receives to school sites according to a
plan adopted by the school board.

(c) For the purposes of this section and section 126C.05, subdivision 3, "building"
means education site as defined in section 123B.04, subdivision 1.

(d) If the pupil is served at a site other than one owned and operated by the district,
the revenue shall be paid to the district and used for services for pupils who generate the
revenue.

new text begin (e) A district with school building openings, school building closings, changes
in attendance area boundaries, or other changes in programs or student demographics
between the prior year and the current year may reallocate compensatory revenue among
sites to reflect these changes. A district must report to the department any adjustments it
makes according to this paragraph and the department must use the adjusted compensatory
revenue allocations in preparing the report required under section 123B.76, subdivision 3,
paragraph (c).
new text end

Sec. 9.

Minnesota Statutes 2006, section 126C.41, is amended by adding a subdivision
to read:

new text begin Subd. 6. new text end

new text begin Levy authority for unfunded severance and retirement costs. new text end

new text begin (a) A
school district qualifies for eligibility under this section if the district:
new text end

new text begin (1) participated in the cooperative secondary facilities program;
new text end

new text begin (2) consolidated with at least two other school districts; and
new text end

new text begin (3) has unfunded severance or retirement costs.
new text end

new text begin (b) An eligible school district may annually levy up to $150,000 for unfunded
severance or retirement costs. This levy authority expires after taxes payable in 2017.
new text end

new text begin (c) A school district that levies under this section must reserve the proceeds of the
levy and spend those amounts only for unfunded severance or retirement costs.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxes payable in 2008.
new text end

Sec. 10.

Minnesota Statutes 2006, section 126C.48, subdivision 2, is amended to read:

Subd. 2.

Notice to commissioner; forms.

By October 7 of each year each
district must notify the commissioner of the proposed levies in compliance with the levy
limitations of this chapter and chapters 120B, 122A, 123A, 123B, 124D, 125A, 127A, and
136D. new text begin A school district that has reached an agreement with its home county auditor to
extend the date of certification of its proposed levy under section 275.065, subdivision 1,
must submit its notice of proposed levies to the commissioner no later than October 10 of
each year. new text end By January 7 of each year each district must notify the commissioner of the
final levies certified. The commissioner shall prescribe the form of these notifications and
may request any additional information necessary to compute certified levy amounts.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2007.
new text end

Sec. 11.

Minnesota Statutes 2006, section 205A.03, subdivision 1, is amended to read:

Subdivision 1.

deleted text begin Required deleted text end new text begin Resolution requiring new text end primary in certain circumstances.

deleted text begin In deleted text end new text begin The school board of new text end a school district deleted text begin election, deleted text end new text begin may, by resolution adopted by June 1 of
any year, decide to choose nominees for school board by a primary as provided in this
section. The resolution, when adopted, is effective for all ensuing elections of board
members in that school district until it is revoked. If the board decides to choose nominees
by primary and new text end if there are more than two candidates for a specified school board position
or more than twice as many school board candidates as there are at-large school board
positions available, deleted text begin a deleted text end new text begin the new text end school district must hold a primary.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment
and applies for school board elections held in 2007 and thereafter.
new text end

Sec. 12.

Minnesota Statutes 2006, section 205A.06, subdivision 1a, is amended to read:

Subd. 1a.

Filing period.

new text begin In school districts that have adopted a resolution to choose
nominees for school board by a primary election, new text end affidavits of candidacy must be filed
with the school district clerk no earlier than the 70th day and no later than the 56th day
before the first Tuesday after the second Monday in September in the year when the
school district general election is held. new text begin In all other school districts, affidavits of candidacy
must be filed no earlier than the 70th day and no later than the 56th day before the school
district general election.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment
and applies for school board elections held in 2007 and thereafter.
new text end

Sec. 13.

Minnesota Statutes 2006, section 275.065, subdivision 1, is amended to read:

Subdivision 1.

Proposed levy.

(a) Notwithstanding any law or charter to the
contrary, on or before September 15, each taxing authority, other than a school district,
shall adopt a proposed budget and shall certify to the county auditor the proposed or, in
the case of a town, the final property tax levy for taxes payable in the following year.

(b) On or before September 30, each school district new text begin that has not mutually agreed
with its home county to extend this date new text end shall certify to the county auditor the proposed
property tax levy for taxes payable in the following year. new text begin Each school district that has
agreed with its home county to delay the certification of its proposed property tax levy
must certify its proposed property tax levy for the following year no later than October
7. new text end The school district shall certify the proposed levy as:

(1) a specific dollar amount by school district fund, broken down between
voter-approved and non-voter-approved levies and between referendum market value
and tax capacity levies; or

(2) the maximum levy limitation certified by the commissioner of education
according to section 126C.48, subdivision 1.

(c) If the board of estimate and taxation or any similar board that establishes
maximum tax levies for taxing jurisdictions within a first class city certifies the maximum
property tax levies for funds under its jurisdiction by charter to the county auditor by
September 15, the city shall be deemed to have certified its levies for those taxing
jurisdictions.

(d) For purposes of this section, "taxing authority" includes all home rule and
statutory cities, towns, counties, school districts, and special taxing districts as defined
in section 275.066. Intermediate school districts that levy a tax under chapter 124 or
136D, joint powers boards established under sections 123A.44 to 123A.446, and Common
School Districts No. 323, Franconia, and No. 815, Prinsburg, are also special taxing
districts for purposes of this section.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2007.
new text end

Sec. 14.

Minnesota Statutes 2006, section 275.065, subdivision 1a, is amended to read:

Subd. 1a.

Overlapping jurisdictions.

In the case of a taxing authority lying in
two or more counties, the home county auditor shall certify the proposed levy and the
proposed local tax rate to the other county auditor by October 5 new text begin , unless the home county
has agreed to delay the certification of its proposed property tax levy, in which case the
home county auditor shall certify the proposed levy and the proposed local tax rate to the
other county auditor by October 10 new text end . The home county auditor must estimate the levy or
rate in preparing the notices required in subdivision 3, if the other county has not certified
the appropriate information. If requested by the home county auditor, the other county
auditor must furnish an estimate to the home county auditor.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2007.
new text end

Sec. 15. new text begin DEPARTMENT OF EDUCATION REPORT.
new text end

new text begin The Department of Education must provide a report to the education committees
of the legislature by January 15, 2008. The report must analyze the department's data
collection procedures under each of the department's major data reporting systems and
recommend a streamlined, Web-based system of reporting school district data. The report
must also analyze any stand-alone school district reporting requirements and recommend
elimination of any district reports that are duplicative of other data already collected
by the department.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 16. new text begin PLAINVIEW-ELGIN-MILLVILLE; CONSOLIDATED DISTRICT
FUND BALANCE CALCULATIONS.
new text end

new text begin Subdivision 1. new text end

new text begin Fiscal year 2007 replacement aid. new text end

new text begin Independent School District
No. 2899, Plainview-Elgin-Millville, is eligible for replacement aid to offset its excess
fund balance penalty for fiscal year 2007.
new text end

new text begin Subd. 2. new text end

new text begin Fiscal years 2008 and 2009. new text end

new text begin Upon receipt of appropriate documentation
from Independent School District No. 2899, Plainview-Elgin-Millville, the Department of
Education must adjust the district's three-year adjusted average fund balances required
under Minnesota Statutes, sections 124D.135, 124D.16 and 124D.20. The department
shall adjust the fiscal year 2006 account balances reported by former Independent School
Districts Nos. 806, Elgin-Millville, and 810, Plainview, to reflect any permanent account
of fund transfers made under Minnesota Statutes, section 123B.79.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 17. new text begin FUND TRANSFERS.
new text end

new text begin Subdivision 1. new text end

new text begin Brainerd. new text end

new text begin Notwithstanding Minnesota Statutes, section 123B.79
or 123B.80, Independent School District No. 181, Brainerd, on June 30, 2007, may
permanently transfer up to $750,000 from the reserved for operating capital account to the
undesignated balance in its general fund.
new text end

new text begin Subd. 2. new text end

new text begin Campbell-Tintah. new text end

new text begin Notwithstanding Minnesota Statutes, section 123B.79
or 123B.80, on June 30, 2007, Independent School District No. 852, Campbell-Tintah,
may permanently transfer up to $100,000 from its reserved for operating capital account
to the undesignated balance in its general fund.
new text end

new text begin Subd. 3. new text end

new text begin Jackson County Central. new text end

new text begin Notwithstanding Minnesota Statutes, section
123B.79 or 123B.80, on June 30, 2007, Independent School District No. 2895, Jackson
County Central, may permanently transfer up to $300,000 from its reserved for operating
capital account to the undesignated balance in its general fund.
new text end

new text begin Subd. 4. new text end

new text begin Comfrey. new text end

new text begin Notwithstanding Minnesota Statutes, section 123B.79
or 123B.80, Independent School District No. 81, Comfrey, on June 30, 2007, may
permanently transfer up to $250,000 from its reserved for operating capital account to the
undesignated balance in its general fund.
new text end

Sec. 18. new text begin APPROPRIATIONS.
new text end

new text begin Subdivision 1. new text end

new text begin Department of Education. new text end

new text begin The sums indicated in this section are
appropriated from the general fund to the Department of Education for the fiscal years
designated.
new text end

new text begin Subd. 2. new text end

new text begin School lunch. new text end

new text begin For school lunch aid according to Minnesota Statutes,
section 124D.111, and Code of Federal Regulations, title 7, section 210.17:
new text end

	new text begin $ new text end	new text begin 12,022,000 new text end	new text begin ..... new text end	new text begin 2008 new text end
	new text begin $ new text end	new text begin 12,166,000 new text end	new text begin ..... new text end	new text begin 2009 new text end

new text begin Subd. 3. new text end

new text begin Traditional school breakfast; kindergarten milk. new text end

new text begin For traditional school
breakfast aid and kindergarten milk under Minnesota Statutes, sections 124D.1158 and
124D.118:
new text end

	new text begin $ new text end	new text begin 5,460,000 new text end	new text begin ..... new text end	new text begin 2008 new text end
	new text begin $ new text end	new text begin 5,695,000 new text end	new text begin ..... new text end	new text begin 2009 new text end

new text begin Subd. 4. new text end

new text begin Summer food service replacement aid. new text end

new text begin For summer food service
replacement aid under Minnesota Statutes, section 124D.119:
new text end

	new text begin $ new text end	new text begin 150,000 new text end	new text begin ..... new text end	new text begin 2008 new text end
	new text begin $ new text end	new text begin 150,000 new text end	new text begin ..... new text end	new text begin 2009 new text end

new text begin Subd. 5. new text end

new text begin Plainview-Elgin-Millville fund balance replacement aid.
new text end

new text begin For fund balance replacement aid for Independent School District No. 2899,
Plainview-Elgin-Millville:
new text end

new text begin $ new text end

new text begin 17,000 new text end

new text begin ..... new text end

new text begin 2008 new text end

new text begin This is a onetime appropriation.
new text end

Sec. 19. new text begin REVISOR'S INSTRUCTION.
new text end

new text begin In Minnesota Statutes, the revisor of statutes shall renumber Minnesota Statutes,
section 123B.10, subdivision 1, as 123B.10, subdivision 1b, and make necessary
cross-reference changes consistent with the renumbering.
new text end

ARTICLE 6

LIBRARIES

Section 1.

Minnesota Statutes 2006, section 134.31, is amended by adding a
subdivision to read:

new text begin Subd. 4a. new text end

new text begin Services to the blind and physically handicapped. new text end

new text begin The Minnesota
Department of Education shall provide specialized services to the blind and physically
handicapped through the Minnesota Library for the Blind and Physically Handicapped
under a cooperative plan with the National Library Services for the Blind and Physically
Handicapped of the Library of Congress.
new text end

Sec. 2.

Minnesota Statutes 2006, section 134.34, subdivision 4, is amended to read:

Subd. 4.

Limitation.

A regional library basic system support grant shall not be
made to a regional public library system for a participating city or county which decreases
the dollar amount provided for support for operating purposes of public library service
below the amount provided by it for the second preceding year. new text begin For purposes of this
subdivision and subdivision 1, any funds provided under section 473.757, subdivision 2,
for extending library hours of operation shall not be considered amounts provided by a city
or county for support for operating purposes of public library service. new text end This subdivision
shall not apply to participating cities or counties where the adjusted net tax capacity of
that city or county has decreased, if the dollar amount of the reduction in support is not
greater than the dollar amount by which support would be decreased if the reduction in
support were made in direct proportion to the decrease in adjusted net tax capacity.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 3. new text begin COMPREHENSIVE LIBRARY STRUCTURE STUDY.
new text end

new text begin The commissioner of education must contract with an independent consultant that
has extensive experience working with libraries to evaluate the structure of the library
system and services provided by Minnesota libraries that receive public funding. The
study must include all types of libraries in the state such as academic, government, special,
school, and public libraries, including collaborative entities such as MINITEX and state
library services. The consultant must:
new text end

new text begin (1) conduct an in-depth analysis of the current library system structure and services,
identifying best practices, duplication of services, and opportunities to improve efficiency;
and
new text end

new text begin (2) prepare a report to be submitted to the Department of Education, documenting
and reporting findings, and recommending, where necessary, changes to increase
efficiency and cooperation in the delivery of service and use of public funds.
new text end

new text begin The commissioner must report the findings of the study to the legislative committees
having jurisdiction over kindergarten through grade 12 finance before January 15, 2009,
and shall recommend any required changes in statute that will result in a more streamlined
and efficient library structure.
new text end

Sec. 4. new text begin DEPARTMENT OF EDUCATION; LIBRARY APPROPRIATIONS.
new text end

new text begin Subdivision 1. new text end

new text begin Department of Education. new text end

new text begin The sums indicated in this section are
appropriated from the general fund to the Department of Education for the fiscal years
designated.
new text end

new text begin Subd. 2. new text end

new text begin Basic system support. new text end

new text begin For basic system support grants under Minnesota
Statutes, section 134.355:
new text end

	new text begin $ new text end	new text begin 9,182,000 new text end	new text begin ..... new text end	new text begin 2008 new text end
	new text begin $ new text end	new text begin 13,138,000 new text end	new text begin ..... new text end	new text begin 2009 new text end

new text begin The 2008 appropriation includes $857,000 for 2007 and $8,325,000 for 2008.
new text end

new text begin The 2009 appropriation includes $925,000 for 2008 and $12,213,000 for 2009.
new text end

new text begin Subd. 3. new text end

new text begin Multicounty, multitype library systems. new text end

new text begin For grants under Minnesota
Statutes, sections 134.353 and 134.354, to multicounty, multitype library systems:
new text end

	new text begin $ new text end	new text begin 1,260,000 new text end	new text begin ..... new text end	new text begin 2008 new text end
	new text begin $ new text end	new text begin 1,300,000 new text end	new text begin ..... new text end	new text begin 2009 new text end

new text begin The 2008 appropriation includes $90,000 for 2007 and $1,170,000 for 2008.
new text end

new text begin The 2009 appropriation includes $130,000 for 2008 and $1,170,000 for 2009.
new text end

new text begin Subd. 4. new text end

new text begin Electronic library for Minnesota. new text end

new text begin For statewide licenses to online
databases selected in cooperation with the Minnesota Office of Higher Education for
school media centers, public libraries, state government agency libraries, and public
or private college or university libraries:
new text end

	new text begin $ new text end	new text begin 900,000 new text end	new text begin ..... new text end	new text begin 2008 new text end
	new text begin $ new text end	new text begin 900,000 new text end	new text begin ..... new text end	new text begin 2009 new text end

new text begin Any balance in the first year does not cancel but is available in the second year.
new text end

new text begin Subd. 5. new text end

new text begin Regional library telecommunications aid. new text end

new text begin For regional library
telecommunications aid under Minnesota Statutes, section 134.355:
new text end

	new text begin $ new text end	new text begin 2,190,000 new text end	new text begin ..... new text end	new text begin 2008 new text end
	new text begin $ new text end	new text begin 2,300,000 new text end	new text begin ..... new text end	new text begin 2009 new text end

new text begin The 2008 appropriation includes $120,000 for 2007 and $2,070,000 for 2008.
new text end

new text begin The 2009 appropriation includes $230,000 for 2008 and $2,070,000 for 2009.
new text end

new text begin Subd. 6. new text end

new text begin Hennepin County and Minneapolis library systems merger. new text end

new text begin For costs
attributable to the library system merger:
new text end

new text begin $ new text end

new text begin 4,500,000 new text end

new text begin ..... new text end

new text begin 2008 new text end

new text begin If the Hennepin County and Minneapolis city library systems do not merge, any
unexpended balance remaining in this appropriation must be allocated to increase the
fiscal year 2008 entitlement for Basic System Support Grants under Minnesota Statutes,
section 134.355.
new text end

new text begin This appropriation is available through June 30, 2009.
new text end

new text begin This is a onetime appropriation.
new text end

ARTICLE 7

STATE AGENCIES

Section 1.

new text begin [124D.805] COMMITTEES ON AMERICAN INDIAN EDUCATION
PROGRAMS.
new text end

new text begin Subdivision 1. new text end

new text begin Establishment. new text end

new text begin The commissioner of education shall create one or
more American Indian education committees. Members must include representatives of
tribal bodies, community groups, parents of children eligible to be served by the programs
for American Indian children in American Indian schools, American Indian administrators
and teachers, persons experienced in training teachers for American Indian education
programs, persons involved in programs for American Indian children in American Indian
schools, and persons knowledgeable about American Indian education. The commissioner
of education shall appoint members who are representative of significant segments of
the American Indian population.
new text end

new text begin Subd. 2. new text end

new text begin Committee to advise commissioner. new text end

new text begin Each committee on American Indian
education programs shall advise the commissioner regarding the commissioner's duties
under sections 124D.71 to 124D.82 and other programs for educating American Indian
people as determined by the commissioner.
new text end

new text begin Subd. 3. new text end

new text begin Expenses. new text end

new text begin Each committee must be reimbursed for expenses under section
15.059, subdivision 6. The commissioner must determine the membership terms and the
duration of each committee, which must expire no later than June 30, 2020.
new text end

Sec. 2.

Minnesota Statutes 2006, section 517.08, subdivision 1c, is amended to read:

Subd. 1c.

Disposition of license fee.

(a) Of the marriage license fee collected
pursuant to subdivision 1b, paragraph (a), $15 must be retained by the county. The local
registrar must pay $85 to the commissioner of finance to be deposited as follows:

(1) $50 in the general fund;

(2) $3 in the new text begin state government new text end special revenue fund to be appropriated to the
commissioner of deleted text begin education deleted text end new text begin public safety new text end for parenting time centers under section 119A.37;

(3) $2 in the special revenue fund to be appropriated to the commissioner of health
for developing and implementing the MN ENABL program under section 145.9255;

(4) $25 in the special revenue fund is appropriated to the commissioner of
employment and economic development for the displaced homemaker program under
section 116L.96; and

(5) $5 in the special revenue fund is appropriated to the commissioner of human
services for the Minnesota Healthy Marriage and Responsible Fatherhood Initiative under
section 256.742.

(b) Of the $30 fee under subdivision 1b, paragraph (b), $15 must be retained by the
county. The local registrar must pay $15 to the commissioner of finance to be deposited
as follows:

(1) $5 as provided in paragraph (a), clauses (2) and (3); and

(2) $10 in the special revenue fund is appropriated to the commissioner of
employment and economic development for the displaced homemaker program under
section 116L.96.

(c) The increase in the marriage license fee under paragraph (a) provided for in Laws
2004, chapter 273, and disbursement of the increase in that fee to the special fund for the
Minnesota Healthy Marriage and Responsible Fatherhood Initiative under paragraph (a),
clause (5), is contingent upon the receipt of federal funding under United States Code, title
42, section 1315, for purposes of the initiative.

Sec. 3. new text begin RULEMAKING AUTHORITY; CAREER AND TECHNICAL
EDUCATION.
new text end

new text begin The commissioner of education shall adopt rules under Minnesota Statutes, chapter
14, for the administration of career and technical education programs for grades 7 through
12 under Minnesota Statutes, sections 124D.452, 124D.4531, and 124D.454, to ensure
that the career and technical levy and programs can be administered to serve students
under the current state and local organizational structures.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 4. new text begin APPROPRIATIONS; DEPARTMENT OF EDUCATION.
new text end

new text begin Subdivision 1. new text end

new text begin Department of Education. new text end

new text begin Unless otherwise indicated, the sums
indicated in this section are appropriated from the general fund to the Department of
Education for the fiscal years designated.
new text end

new text begin Subd. 2. new text end

new text begin Department. new text end

new text begin (a) For the Department of Education:
new text end

	new text begin $ new text end	new text begin 22,003,000 new text end	new text begin ..... new text end	new text begin 2008 new text end
	new text begin $ new text end	new text begin 22,309,000 new text end	new text begin ..... new text end	new text begin 2009 new text end

new text begin Any balance in the first year does not cancel but is available in the second year.
new text end

new text begin (b) $260,000 each year is for the Minnesota Children's Museum.
new text end

new text begin (c) $41,000 each year is for the Minnesota Academy of Science.
new text end

new text begin (d) $614,000 in fiscal year 2008 and $622,000 in fiscal year 2009 are for the Board
of Teaching.
new text end

new text begin (e) $162,000 in fiscal year 2008 and $165,000 in fiscal year 2009 are for the Board
of School Administrators.
new text end

new text begin (f) $7,000 in fiscal year 2008 is for GRAD test rulemaking.
new text end

new text begin (g) $7,000 in fiscal year 2008 is for rulemaking under section 3.
new text end

new text begin (h) $7,000 in fiscal year 2008 is for rulemaking for health and physical education
standards.
new text end

new text begin (i) $40,000 each year is for an early hearing loss intervention coordinator under
Minnesota Statutes, section 125A.63, subdivision 5.
new text end

new text begin (j) The expenditures of federal grants and aids as shown in the biennial budget
document and its supplements are approved and appropriated and shall be spent as
indicated.
new text end

new text begin (k) $260,000 per year is for the Minnesota Children's Museum.
new text end

new text begin (l) $41,000 per year is for the Academy of Science.
new text end

Sec. 5. new text begin APPROPRIATIONS; MINNESOTA STATE ACADEMIES.
new text end

new text begin The sums indicated in this section are appropriated from the general fund to the
Minnesota State Academies for the Deaf and the Blind for the fiscal years designated:
new text end

	new text begin $ new text end	new text begin 11,504,000 new text end	new text begin ..... new text end	new text begin 2008 new text end
	new text begin $ new text end	new text begin 11,527,000 new text end	new text begin ..... new text end	new text begin 2009 new text end

new text begin Any balance in the first year does not cancel but is available in the second year.
new text end

Sec. 6. new text begin APPROPRIATIONS; PERPICH CENTER FOR ARTS EDUCATION.
new text end

new text begin The sums indicated in this section are appropriated from the general fund to the
Perpich Center for Arts Education for the fiscal years designated:
new text end

	new text begin $ new text end	new text begin 6,727,000 new text end	new text begin ..... new text end	new text begin 2008 new text end
	new text begin $ new text end	new text begin 6,833,000 new text end	new text begin ..... new text end	new text begin 2009 new text end

new text begin Any balance in the first year does not cancel but is available in the second year.
new text end

Sec. 7. new text begin APPROPRIATIONS; DEPARTMENT OF PUBLIC SAFETY.
new text end

new text begin The sums indicated in this section are appropriated from the state government
special revenue fund to the Department of Public Safety for the fiscal years designated to
fund parenting time centers as described in Minnesota Statutes, section 119A.37:
new text end

	new text begin $ new text end	new text begin 96,000 new text end	new text begin ..... new text end	new text begin 2008 new text end
	new text begin $ new text end	new text begin 96,000 new text end	new text begin ..... new text end	new text begin 2009 new text end

ARTICLE 8

EDUCATION FORECAST ADJUSTMENTS

A. GENERAL EDUCATION

Section 1.

Laws 2005, First Special Session chapter 5, article 1, section 54, subdivision
2, as amended by Laws 2006, chapter 282, article 3, section 2, is amended to read:

Subd. 2. General education aid. For general education aid under Minnesota Statutes,
section 126C.13, subdivision 4:

	$	5,819,153,000	.....	2006
	$	deleted text begin 5,472,238,000 deleted text end new text begin 5,453,693,000 new text end	.....	2007

The 2006 appropriation includes $787,978,000 for 2005 and $5,031,175,000 for
2006.

The 2007 appropriation includes deleted text begin $513,848,000 deleted text end new text begin $518,218,000 new text end for 2006 and
deleted text begin $4,958,390,000 deleted text end new text begin $4,935,475,000 new text end for 2007.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 2.

Laws 2005, First Special Session chapter 5, article 1, section 54, subdivision 4,
is amended to read:

Subd. 4.

Enrollment options transportation.

For transportation of pupils attending
postsecondary institutions under Minnesota Statutes, section 124D.09, or for transportation
of pupils attending nonresident districts under Minnesota Statutes, section 124D.03:

	$	55,000	.....	2006
	$	deleted text begin 55,000 deleted text end new text begin 93,000 new text end	.....	2007

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 3.

Laws 2005, First Special Session chapter 5, article 1, section 54, subdivision 5,
as amended by Laws 2006, chapter 282, article 7, section 2, is amended to read:

Subd. 5. Abatement revenue. For abatement aid under Minnesota Statutes, section
127A.49:

	$	909,000	.....	2006
	$	deleted text begin 1,026,000 deleted text end new text begin 765,000 new text end	.....	2007

The 2006 appropriation includes $187,000 for 2005 and $722,000 for 2006.

The 2007 appropriation includes $80,000 for 2006 and deleted text begin $946,000 deleted text end new text begin $685,000 new text end for 2007.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 4.

Laws 2005, First Special Session chapter 5, article 1, section 54, subdivision 6,
as amended by Laws 2006, chapter 282, article 7, section 3, is amended to read:

Subd. 6. Consolidation transition. For districts consolidating under Minnesota Statutes,
section 123A.485:

$

deleted text begin 527,000 deleted text end new text begin 388,000 new text end

.....

2007

The 2007 appropriation includes $0 for 2006 and deleted text begin $527,000 deleted text end new text begin $388,000 new text end for 2007.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 5.

Laws 2005, First Special Session chapter 5, article 1, section 54, subdivision 7,
as amended by Laws 2006, chapter 282, article 7, section 4, is amended to read:

Subd. 7. Nonpublic pupil education aid. For nonpublic pupil education aid under
Minnesota Statutes, sections 123B.87 and 123B.40 to 123B.43:

	$	15,458,000	.....	2006
	$	deleted text begin 15,991,000 deleted text end new text begin 15,972,000 new text end	.....	2007

The 2006 appropriation includes $1,864,000 for 2005 and $13,594,000 for 2006.

The 2007 appropriation includes $1,510,000 for 2006 and deleted text begin $14,481,000 deleted text end new text begin $14,462,000 new text end
for 2007.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 6.

Laws 2005, First Special Session chapter 5, article 1, section 54, subdivision 8,
as amended by Laws 2006, chapter 282, article 7, section 5, is amended to read:

Subd. 8. Nonpublic pupil transportation. For nonpublic pupil transportation aid under
Minnesota Statutes, section 123B.92, subdivision 9:

	$	21,371,000	.....	2006
	$	deleted text begin 20,843,000 deleted text end new text begin 21,133,000 new text end	.....	2007

The 2006 appropriation includes $3,274,000 for 2005 and $18,097,000 for 2006.

The 2007 appropriation includes $2,010,000 for 2006 and deleted text begin $18,833,000 deleted text end new text begin $19,123,000 new text end
for 2007.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

B. EDUCATION EXCELLENCE

Sec. 7.

Laws 2005, First Special Session chapter 5, article 2, section 84, subdivision 2,
as amended by Laws 2006, chapter 282, article 7, section 6, is amended to read:

Subd. 2. Charter school building lease aid. For building lease aid under Minnesota
Statutes, section 124D.11, subdivision 4:

	$	25,331,000	.....	2006
	$	deleted text begin 27,806,000 deleted text end new text begin 27,795,000 new text end	.....	2007

The 2006 appropriation includes $3,173,000 for 2005 and $22,158,000 for 2006.

The 2007 appropriation includes $2,462,000 for 2006 and deleted text begin $25,344,000 deleted text end new text begin $25,333,000 new text end
for 2007.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 8.

Laws 2005, First Special Session chapter 5, article 2, section 84, subdivision 3,
as amended by Laws 2006, chapter 282, article 7, section 7, is amended to read:

Subd. 3. Charter school startup aid. For charter school startup cost aid under Minnesota
Statutes, section 124D.11:

	$	1,291,000	.....	2006
	$	deleted text begin 2,347,000 deleted text end new text begin 2,316,000 new text end	.....	2007

The 2006 appropriation includes $0 for 2005 and $1,291,000 for 2006.

The 2007 appropriation includes $143,000 for 2006 and deleted text begin $2,204,000 deleted text end new text begin $2,173,000 new text end
for 2007.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 9.

Laws 2005, First Special Session chapter 5, article 2, section 84, subdivision 4,
as amended by Laws 2006, chapter 282, article 7, section 8, is amended to read:

Subd. 4. Integration aid. For integration aid under Minnesota Statutes, section 124D.86,
subdivision 5:

	$	59,404,000	.....	2006
	$	deleted text begin 58,405,000 deleted text end new text begin 58,075,000 new text end	.....	2007

The 2006 appropriation includes $8,545,000 for 2005 and $50,859,000 for 2006.

The 2007 appropriation includes $5,650,000 for 2006 and deleted text begin $52,755,000 deleted text end new text begin $52,425,000 new text end
for 2007.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 10.

Laws 2005, First Special Session chapter 5, article 2, section 84, subdivision
6, as amended by Laws 2006, chapter 282, article 7, section 9, is amended to read:

Subd. 6. Interdistrict desegregation or integration transportation grants. For
interdistrict desegregation or integration transportation grants under Minnesota Statutes,
section 124D.87:

	$	6,032,000	.....	2006
	$	deleted text begin 10,134,000 deleted text end new text begin 8,169,000 new text end	.....	2007

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 11.

Laws 2005, First Special Session chapter 5, article 2, section 84, subdivision
10, as amended by Laws 2006, chapter 282, article 7, section 11, is amended to read:

Subd. 10. Tribal contract schools. For tribal contract school aid under Minnesota
Statutes, section 124D.83:

	$	2,338,000	.....	2006
	$	deleted text begin 2,357,000 deleted text end new text begin 2,060,000 new text end	.....	2007

The 2006 appropriation includes $348,000 for 2005 and $1,990,000 for 2006.

The 2007 appropriation includes $221,000 for 2006 and deleted text begin $2,136,000 deleted text end new text begin $1,839,000 new text end
for 2007.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

C. SPECIAL PROGRAMS

Sec. 12.

Laws 2005, First Special Session chapter 5, article 3, section 18, subdivision
2, as amended by Laws 2006, chapter 282, article 7, section 12, is amended to read:

Subd. 2. Special education; regular. For special education aid under Minnesota Statutes,
section 125A.75:

	$	559,485,000	.....	2006
	$	deleted text begin 528,106,000 deleted text end new text begin 529,257,000 new text end	.....	2007

The 2006 appropriation includes $83,078,000 for 2005 and $476,407,000 for 2006.

The 2007 appropriation includes $52,934,000 for 2006 and deleted text begin $475,172,000 deleted text end new text begin
$476,323,000 new text end for 2007.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 13.

Laws 2005, First Special Session chapter 5, article 3, section 18, subdivision
3, as amended by Laws 2006, chapter 282, article 7, section 13, is amended to read:

Subd. 3. Aid for children with disabilities. For aid under Minnesota Statutes, section
125A.75, subdivision 3, for children with disabilities placed in residential facilities within
the district boundaries for whom no district of residence can be determined:

	$	1,527,000	.....	2006
	$	deleted text begin 1,624,000 deleted text end new text begin 1,410,000 new text end	.....	2007

If the appropriation for either year is insufficient, the appropriation for the other
year is available.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 14.

Laws 2005, First Special Session chapter 5, article 3, section 18, subdivision
4, as amended by Laws 2006, chapter 282, article 7, section 14, is amended to read:

Subd. 4. Travel for home-based services. For aid for teacher travel for home-based
services under Minnesota Statutes, section 125A.75, subdivision 1:

	$	198,000	.....	2006
	$	deleted text begin 195,000 deleted text end new text begin 224,000 new text end	.....	2007

The 2006 appropriation includes $28,000 for 2005 and $170,000 for 2006.

The 2007 appropriation includes $18,000 for 2006 and deleted text begin $177,000 deleted text end new text begin $206,000 new text end for 2007.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 15.

Laws 2005, First Special Session chapter 5, article 3, section 18, subdivision
6, as amended by Laws 2006, chapter 282, article 7, section 16, is amended to read:

Subd. 6. Transition for disabled students. For aid for transition programs for children
with disabilities under Minnesota Statutes, section 124D.454:

	$	9,300,000	.....	2006
	$	deleted text begin 8,781,000 deleted text end new text begin 8,800,000 new text end	.....	2007

The 2006 appropriation includes $1,380,000 for 2005 and $7,920,000 for 2006.

The 2007 appropriation includes $880,000 for 2006 and deleted text begin $7,901,000 deleted text end new text begin $7,920,000 new text end
for 2007.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

D. FACILITIES

Sec. 16.

Laws 2005, First Special Session chapter 5, article 4, section 25, subdivision
2, as amended by Laws 2006, chapter 282, article 7, section 18, is amended to read:

Subd. 2. Health and safety revenue. For health and safety aid according to Minnesota
Statutes, section 123B.57, subdivision 5:

	$	823,000	.....	2006
	$	deleted text begin 352,000 deleted text end new text begin 249,000 new text end	.....	2007

The 2006 appropriation includes $211,000 for 2005 and $612,000 for 2006.

The 2007 appropriation includes $68,000 for 2006 and deleted text begin $284,000 deleted text end new text begin $181,000 new text end for 2007.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 17.

Laws 2005, First Special Session chapter 5, article 4, section 25, subdivision
3, as amended by Laws 2006, chapter 282, article 5, section 2, is amended to read:

Subd. 3. Debt service equalization. For debt service aid according to Minnesota Statutes,
section 123B.53, subdivision 6:

	$	27,206,000	.....	2006
	$	deleted text begin 18,410,000 deleted text end new text begin 18,395,000 new text end	.....	2007

The 2006 appropriation includes $4,654,000 for 2005 and $22,552,000 for 2006.

The 2007 appropriation includes $2,504,000 for 2006 and $ deleted text begin 15,906,000 deleted text end new text begin 15,891,000 new text end
for 2007.

EFFECTIVE DATE.

new text begin This section is effective the day following final enactment.
new text end

E. NUTRITION

Sec. 18.

Laws 2005, First Special Session chapter 5, article 5, section 17, subdivision
3, as amended by Laws 2006, chapter 282, article 7, section 20, is amended to read:

Subd. 3. Traditional school breakfast; kindergarten milk. For traditional school
breakfast aid and kindergarten milk under Minnesota Statutes, sections 124D.1158 and
124D.118:

	$	4,856,000	.....	2006
	$	deleted text begin 5,044,000 deleted text end new text begin 5,175,000 new text end	.....	2007

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

F. EARLY CHILDHOOD EDUCATION

Sec. 19.

Laws 2005, First Special Session chapter 5, article 7, section 20, subdivision
2, as amended by Laws 2006, chapter 282, article 7, section 24, is amended to read:

Subd. 2. School readiness. For revenue for school readiness programs under Minnesota
Statutes, sections 124D.15 and 124D.16:

	$	9,528,000	.....	2006
	$	deleted text begin 9,020,000 deleted text end new text begin 9,087,000 new text end	.....	2007

The 2006 appropriation includes $1,415,000 for 2005 and $8,113,000 for 2006.

The 2007 appropriation includes $901,000 for 2006 and deleted text begin $8,119,000 deleted text end new text begin $8,186,000 new text end
for 2007.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 20.

Laws 2005, First Special Session chapter 5, article 7, section 20, subdivision
3, as amended by Laws 2006, chapter 282, article 2, section 24, is amended to read:

Subd. 3. Early childhood family education aid. For early childhood family education
aid under Minnesota Statutes, section 124D.135:

	$	15,105,000	.......	2006
	$	deleted text begin 17,792,000 deleted text end new text begin 17,639,000 new text end	.......	2007

The 2006 appropriation includes $1,859,000 for 2005 and $13,246,000 for 2006.

The 2007 appropriation includes $1,471,000 for 2006 and deleted text begin $16,321,000 deleted text end new text begin $16,168,000 new text end
for 2007.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 21.

Laws 2005, First Special Session chapter 5, article 7, section 20, subdivision
4, as amended by Laws 2006, chapter 282, article 2, section 25, is amended to read:

Subd. 4. Health and developmental screening aid. For health and developmental
screening aid under Minnesota Statutes, sections 121A.17 and 121A.19:

	$	3,000,000	.......	2006
	$	deleted text begin 2,997,000 deleted text end new text begin 2,880,000 new text end	.......	2007

The 2006 appropriation includes $417,000 for 2005 and $2,583,000 for 2006

The 2007 appropriation includes $287,000 for 2006 and deleted text begin $2,710,000 deleted text end new text begin $2,593,000 new text end
for 2007.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 22.

Laws 2006, chapter 282, article 2, section 28, subdivision 4, is amended to
read:

Subd. 4.

Early childhood Part C.

For the expansion of early childhood Part C
services:

$

deleted text begin 400,000 deleted text end new text begin -0- new text end

.....

2007

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

G. PREVENTION

Sec. 23.

Laws 2005, First Special Session chapter 5, article 8, section 8, subdivision 2,
as amended by Laws 2006, chapter 282, article 7, section 25, is amended to read:

Subd. 2. Community education aid. For community education aid under Minnesota
Statutes, section 124D.20:

	$	2,043,000	.....	2006
	$	deleted text begin 1,949,000 deleted text end new text begin 1,942,000 new text end	.....	2007

The 2006 appropriation includes $385,000 for 2005 and $1,658,000 for 2006.

The 2007 appropriation includes $184,000 for 2006 and deleted text begin $1,765,000 deleted text end new text begin $1,758,000 new text end
for 2007.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 24.

Laws 2005, First Special Session chapter 5, article 8, section 8, subdivision 5,
as amended by Laws 2006, chapter 282, article 7, section 27, is amended to read:

Subd. 5. School-age care revenue. For extended day aid under Minnesota Statutes,
section 124D.22:

	$	17,000	.....	2006
	$	deleted text begin 4,000 deleted text end new text begin 6,000 new text end	.......	2007

The 2006 appropriation includes $4,000 for 2005 and $13,000 for 2006.

The 2007 appropriation includes $1,000 for 2006 and deleted text begin $3,000 deleted text end new text begin $5,000 new text end for 2007.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

H. SELF-SUFFICIENCY AND LIFELONG LEARNING

Sec. 25.

Laws 2005, First Special Session chapter 5, article 9, section 4, subdivision 2,
is amended to read:

Subd. 2.

Adult basic education aid.

For adult basic education aid under Minnesota
Statutes:

	$	36,518,000	.....	2006
	$	deleted text begin 36,540,000 deleted text end new text begin 37,486,000 new text end	.....	2007

The 2006 appropriation includes $5,707,000 for 2005 and $30,811,000 for 2006.

The 2007 appropriation includes deleted text begin $5,737,000 deleted text end new text begin $3,654,000 new text end for 2006 and deleted text begin $30,803,000 deleted text end new text begin
$33,832,000 new text end for 2007.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

ARTICLE 9

TECHNICAL AND CONFORMING AMENDMENTS

Section 1.

Minnesota Statutes 2006, section 122A.628, subdivision 2, is amended to
read:

Subd. 2.

Revenue.

A school district that is selected to participate in the schools
mentoring schools program under this section may utilize its professional compensation
revenue under section deleted text begin 122A.4142 deleted text end new text begin 122A.414 new text end , subdivision 4, to pay regional training sites
for staff development and training services.

Sec. 2.

Minnesota Statutes 2006, section 123A.73, subdivision 8, is amended to read:

Subd. 8.

Taxable property.

As of the effective date of a consolidation of districts or
the dissolution of a district and its attachment to one or more existing districts pursuant
to chapter 123A, deleted text begin and subject to the conditions of section 126C.42, subdivision 1, deleted text end all
the taxable property which is in the newly created or enlarged district and which was
previously taxable for the payment of any statutory operating debt theretofore incurred by
any preexisting district of which the taxable property was a part prior to the consolidation
or dissolution and attachment shall remain taxable for the payment of that debt and shall
not become taxable for the payment of any statutory operating debt theretofore incurred
by any preexisting district of which the taxable property was not a part prior to the
consolidation or dissolution and attachment. The amount of statutory operating debt
attributable to that taxable property and to the newly created or enlarged district in which
it is located, and the amount of a preexisting district's reserved fund balance reserve
account for purposes of statutory operating debt reduction attributable to the newly created
or enlarged district, shall be apportioned according to the proportion which the adjusted
net tax capacity of that part of the preexisting district bears to the total adjusted net tax
capacity of the entire preexisting district at the time of the consolidation or dissolution
and attachment. This apportionment shall be made by the county auditor and shall
be incorporated as an annex to the order of the commissioner dividing the assets and
liabilities of the component districts. As used in this section, "statutory operating debt"
shall have the meaning given it in section 123B.81.

Sec. 3.

Minnesota Statutes 2006, section 123B.79, subdivision 6, is amended to read:

Subd. 6.

Account transfer for statutory operating debt.

On June 30 of each year,
a district may make a permanent transfer from the general fund account entitled "net
unreserved general fund balance since statutory operating debt" to the account entitled
"reserved fund balance reserve account for purposes of statutory operating debt reduction."
The amount of the transfer is limited to deleted text begin the lesser of (a) deleted text end the net unreserved general fund
balance deleted text begin , or (b) the sum of the remaining statutory operating debt levies authorized for all
future years according to section 126C.42, subdivision 1 deleted text end . If the net unreserved general
fund balance is less than zero, the district may not make a transfer.

Sec. 4.

Minnesota Statutes 2006, section 123B.81, subdivision 2, is amended to read:

Subd. 2.

Statutory operating debt.

If the amount of the operating debt is more
than 2-1/2 percent of the most recent fiscal year's expenditure amount for the funds
considered under subdivision 1, the net negative undesignated fund balance is defined as
"statutory operating debt" for the purposes of this section and deleted text begin sections deleted text end new text begin section new text end 123B.83
deleted text begin and 126C.42, subdivision 1 deleted text end .

Sec. 5.

Minnesota Statutes 2006, section 123B.81, subdivision 4, is amended to read:

Subd. 4.

Debt elimination.

If an audit or other verification procedure conducted
pursuant to subdivision 3 determines that a statutory operating debt exists, a district must
follow the procedures set forth in new text begin this new text end section deleted text begin 126C.42, subdivision 1, deleted text end to eliminate this
statutory operating debt.

Sec. 6.

Minnesota Statutes 2006, section 123B.81, subdivision 7, is amended to read:

Subd. 7.

Applicability.

This section deleted text begin and the provisions of section 126C.42,
subdivision 1, are deleted text end new text begin is new text end applicable only to common, independent, and special school districts
and districts formed pursuant to Laws 1967, chapter 822, as amended, and Laws 1969,
chapters 775 and 1060, as amended. This section deleted text begin and the provisions of section 126C.42,
subdivision 1, do deleted text end new text begin does new text end not apply to Independent School District No. 625.

Sec. 7.

Minnesota Statutes 2006, section 123B.83, subdivision 2, is amended to read:

Subd. 2.

Net unreserved general fund balances.

A school district must limit its
expenditures so that its net unreserved general fund balance does not constitute statutory
operating debt deleted text begin as defined in section 126C.42 deleted text end new text begin under section 123B.81 new text end .

Sec. 8.

Minnesota Statutes 2006, section 124D.34, subdivision 7, is amended to read:

Subd. 7.

Foundation staff.

The commissioner of education shall appoint the
executive director of the foundation from three candidates nominated and submitted by the
foundation board of directors and, as necessary, other staff who shall perform duties and
have responsibilities solely related to the foundation. The employees appointed are not
state employees under chapter 43A, but are covered under section 3.736. The employees
may participate in the state health and state insurance plans for employees in unclassified
service. The employees shall be supervised by the executive director.

The commissioner shall appoint deleted text begin from the Office of Lifework Development deleted text end a liaison
to the foundation board new text begin from the division in the department responsible for career and
technical education new text end .

Sec. 9.

Minnesota Statutes 2006, section 124D.65, subdivision 11, is amended to read:

Subd. 11.

Allocations from cooperative units.

For the purposes of this section
deleted text begin and section 125A.77 deleted text end , pupils of limited English proficiency enrolled in a cooperative
or intermediate school district unit shall be counted by the school district of residence,
and the cooperative unit shall allocate its approved expenditures for limited English
proficiency programs among participating school districts. Limited English proficiency
aid for services provided by a cooperative or intermediate school district shall be paid to
the participating school districts.

Sec. 10.

Minnesota Statutes 2006, section 125A.39, is amended to read:

125A.39 LOCAL INTERAGENCY AGREEMENTS.

School boards and the county board may enter into agreements to cooperatively
serve and provide funding for children with disabilities, under age five, and their families
within a specified geographic area.

The local interagency agreement must address, at a minimum, the following issues:

(1) responsibilities of local agencies on local interagency early intervention
committees (IEIC's), consistent with section 125A.38;

(2) assignment of financial responsibility for early intervention services;

(3) methods to resolve intraagency and interagency disputes;

(4) identification of current resources and recommendations about the allocation of
additional state and federal early intervention funds under the auspices of United States
Code, title 20, section 1471 et seq. (Part C, Public Law deleted text begin 102-119 deleted text end new text begin 108-446 new text end ) and United
States Code, title 20, section 631, et seq. (Chapter I, Public Law 89-313);

(5) data collection; and

(6) other components of the local early intervention system consistent with Public
Law 102-119.

Sec. 11.

Minnesota Statutes 2006, section 125A.42, is amended to read:

125A.42 PROCEDURAL SAFEGUARDS; PARENT AND CHILD RIGHTS.

(a) This section applies to local school and county boards for children from birth
through age two who are eligible for Part deleted text begin H deleted text end new text begin C new text end , Public Law deleted text begin 102-119 deleted text end new text begin 108-446 new text end , and their
families. This section must be consistent with the Individuals with Disabilities Education
Act, United States Code, title 20, sections 1471 to 1485 (Part deleted text begin H deleted text end new text begin C new text end , Public Law deleted text begin 102-119 deleted text end new text begin
108-446 new text end ), regulations adopted under United States Code, title 20, sections 1471 to 1485,
and sections 125A.259 to 125A.48.

(b) A parent has the right to:

(1) inspect and review early intervention records;

(2) prior written notice of a proposed action in the parents' native language unless it
is clearly not feasible to do so;

(3) give consent to any proposed action;

(4) selectively accept or decline any early intervention service; and

(5) resolve issues regarding the identification, evaluation, or placement of the child,
or the provision of appropriate early intervention services to the child and the child's
family through an impartial due process hearing pursuant to section 125A.46.

(c) The eligible child has the right to have a surrogate parent appointed by a school
district as required by section 125A.07.

Sec. 12.

Minnesota Statutes 2006, section 125A.44, is amended to read:

125A.44 COMPLAINT PROCEDURE.

(a) An individual or organization may file a written signed complaint with the
commissioner of the state lead agency alleging that one or more requirements of the Code
of Federal Regulations, title 34, part 303, is not being met. The complaint must include:

(1) a statement that the state has violated the Individuals with Disabilities Education
Act, United States Code, title 20, section 1471 et seq. (Part C, Public Law deleted text begin 102-119 deleted text end new text begin
108-446 new text end ) or Code of Federal Regulations, title 34, section 303; and

(2) the facts on which the complaint is based.

(b) The commissioner of the state lead agency shall receive and coordinate with
other state agencies the review and resolution of a complaint within 60 calendar days
according to the state interagency agreement required under section 125A.48. The
development and disposition of corrective action orders for nonschool agencies shall be
determined by the State Agency Committee (SAC). Failure to comply with corrective
orders may result in fiscal actions or other measures.

Sec. 13.

Minnesota Statutes 2006, section 125A.45, is amended to read:

125A.45 INTERAGENCY DISPUTE PROCEDURE.

(a) A dispute between a school board and a county board that is responsible for
implementing the provisions of section 125A.29 regarding early identification, child and
family assessment, service coordination, and IFSP development and implementation must
be resolved according to this subdivision when the dispute involves services provided
to children and families eligible under the Individuals with Disabilities Education Act,
United States Code, title 20, section 1471 et seq. (Part C, Public Law deleted text begin 102-119 deleted text end new text begin 108-446 new text end ).

(b) A dispute occurs when the school board and county board are unable to agree as
to who is responsible to coordinate, provide, pay for, or facilitate payment for services
from public and private sources.

(c) Written and signed disputes must be filed with the local primary agency.

(d) The local primary agency must attempt to resolve the matter with the involved
school board and county board and may request mediation from the commissioner of the
state lead agency for this purpose.

(e) When interagency disputes have not been resolved within 30 calendar days, the
local primary agency must request the commissioner of the state lead agency to review
the matter with the commissioners of health and human services and make a decision.
The commissioner must provide a consistent process for reviewing those procedures. The
commissioners' decision is binding subject to the right of an aggrieved party to appeal to
the state Court of Appeals.

(f) The local primary agency must ensure that eligible children and their families
receive early intervention services during resolution of a dispute. While a local dispute is
pending, the local primary agency must either assign financial responsibility to an agency
or pay for the service from the early intervention account under section 125A.35. If in
resolving the dispute, it is determined that the assignment of financial responsibility was
inappropriate, the responsibility for payment must be reassigned to the appropriate agency
and the responsible agency must make arrangements for reimbursing any expenditures
incurred by the agency originally assigned financial responsibility.

Sec. 14.

Minnesota Statutes 2006, section 125B.15, is amended to read:

125B.15 INTERNET ACCESS FOR STUDENTS.

(a) Recognizing the difference between school libraries, school computer labs, and
school media centers, which serve unique educational purposes, and public libraries,
which are designed for public inquiry, all computers at a school site with access to the
Internet available for student use must be equipped to restrict, including by use of
available software filtering technology or other effective methods, all student access
to material that is reasonably believed to be obscene or child pornography or material
harmful to minors under federal or state law.

(b) A school site is not required to purchase filtering technology if the school site
would incur more than incidental expense in making the purchase.

(c) A school district receiving technology revenue under section
must prohibit, including through use of available software filtering technology or other
effective methods, adult access to material that under federal or state law is reasonably
believed to be obscene or child pornography.

(d) A school district, its agents or employees, are immune from liability for failure
to comply with this section if they have made a good faith effort to comply with the
requirements of this section.

(e) "School site" means an education site as defined in section 123B.04, subdivision
1, or charter school under section 124D.10.

Sec. 15.

Minnesota Statutes 2006, section 126C.01, subdivision 9, is amended to read:

Subd. 9.

Training and experience index.

"Training and experience index"
means a measure of a district's teacher training and experience relative to the education
and experience of teachers in the state. The measure must be determined pursuant to
new text begin Minnesota Statutes 1996, new text end section 126C.11.

Sec. 16.

Minnesota Statutes 2006, section 126C.05, subdivision 1, is amended to read:

Subdivision 1.

Pupil unit.

Pupil units for each Minnesota resident pupil under the
age of 21 or who meets the requirements of section 120A.20, subdivision 1, paragraph
(c), in average daily membership enrolled in the district of residence, in another district
under sections 123A.05 to 123A.08, 124D.03, 124D.06, deleted text begin 124D.07, deleted text end 124D.08, or 124D.68;
in a charter school under section 124D.10; or for whom the resident district pays tuition
under section 123A.18, 123A.22, 123A.30, 123A.32, 123A.44, 123A.488, 123B.88,
subdivision 4, 124D.04, 124D.05, 125A.03 to 125A.24, 125A.51, or 125A.65, shall be
counted according to this subdivision.

(a) A prekindergarten pupil with a disability who is enrolled in a program approved
by the commissioner and has an individual education plan is counted as the ratio of the
number of hours of assessment and education service to 825 times 1.25 with a minimum
average daily membership of 0.28, but not more than 1.25 pupil units.

(b) A prekindergarten pupil who is assessed but determined not to be disabled is
counted as the ratio of the number of hours of assessment service to 825 times 1.25.

(c) A kindergarten pupil with a disability who is enrolled in a program approved
by the commissioner is counted as the ratio of the number of hours of assessment and
education services required in the fiscal year by the pupil's individual education program
plan to 875, but not more than one.

(d) A kindergarten pupil who is not included in paragraph (c) is counted as .557 of a
pupil unit for fiscal year 2000 and thereafter.

(e) A pupil who is in any of grades 1 to 3 is counted as 1.115 pupil units for fiscal
year 2000 and thereafter.

(f) A pupil who is any of grades 4 to 6 is counted as 1.06 pupil units for fiscal
year 1995 and thereafter.

(g) A pupil who is in any of grades 7 to 12 is counted as 1.3 pupil units.

(h) A pupil who is in the postsecondary enrollment options program is counted
as 1.3 pupil units.

Sec. 17.

Minnesota Statutes 2006, section 126C.48, subdivision 7, is amended to read:

Subd. 7.

Reporting.

For each tax settlement, the county auditor shall report
to each school district by fund, the district tax settlement revenue defined in section
123B.75, subdivision 5, paragraph (a), deleted text begin and the amount levied pursuant to section 126C.42,
subdivision 1, deleted text end on the form specified in section 276.10. The county auditor shall send to
the district a copy of the spread levy report specified in section 275.124.

Sec. 18.

Minnesota Statutes 2006, section 134.355, subdivision 9, is amended to read:

Subd. 9.

Telecommunications aid.

An application for regional library
telecommunications aid must, at a minimum, contain information to document the
following:

(1) the connections are adequate and employ an open network architecture that
will ensure interconnectivity and interoperability with school districts, postsecondary
education, or other governmental agencies;

(2) that the connection is established through the most cost-effective means and that
the regional library has explored and coordinated connections through school districts,
postsecondary education, or other governmental agencies;

(3) that the regional library system has filed an e-rate application; and

(4) other information, as determined by the commissioner of deleted text begin children, families, and
learning deleted text end new text begin education new text end , to ensure that connections are coordinated, efficient, and cost-effective,
take advantage of discounts, and meet applicable state standards.

The library system may include costs associated with cooperative arrangements with
postsecondary institutions, school districts, and other governmental agencies.

Sec. 19. new text begin REPEALER.
new text end

new text begin Minnesota Statutes 2006, sections 123A.22, subdivision 11; and 123B.81,
subdivision 8, new text end new text begin are repealed.
new text end

ARTICLE 10

PUPIL TRANSPORTATION STANDARDS

Section 1.

Minnesota Statutes 2006, section 123B.88, subdivision 12, is amended to
read:

Subd. 12.

Early childhood family education participants.

Districts may provide
bus transportation along deleted text begin regular deleted text end school bus routes when space is available for participants
in early childhood family education programs and school readiness programs if these
services do not result in an increase in the district's expenditures for transportation.
The costs allocated to these services, as determined by generally accepted accounting
principles, shall be considered part of the authorized cost for deleted text begin regular deleted text end transportation for
the purposes of section 123B.92.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment
and applies for fiscal year 2007 and later.
new text end

Sec. 2.

Minnesota Statutes 2006, section 123B.90, subdivision 2, is amended to read:

Subd. 2.

Student training.

(a) Each district must provide public school pupils
enrolled in kindergarten through grade 10 with age-appropriate school bus safety training,
as described in this section, of the following concepts:

(1) transportation by school bus is a privilege and not a right;

(2) district policies for student conduct and school bus safety;

(3) appropriate conduct while on the school bus;

(4) the danger zones surrounding a school bus;

(5) procedures for safely boarding and leaving a school bus;

(6) procedures for safe street or road crossing; and

(7) school bus evacuation.

(b) Each nonpublic school located within the district must provide all nonpublic
school pupils enrolled in kindergarten through grade 10 who are transported by school
bus at public expense and attend school within the district's boundaries with training as
required in paragraph (a).

(c) Students enrolled in kindergarten through grade 6 who are transported by school
bus and are enrolled during the first or second week of school must receive the school bus
safety training competencies by the end of the third week of school. Students enrolled in
grades 7 through 10 who are transported by school bus and are enrolled during the first or
second week of school and have not previously received school bus safety training must
receive the training or receive bus safety instructional materials by the end of the sixth
week of school. Students taking driver's training instructional classes deleted text begin and other students in
grades 9 and 10 deleted text end must receive training in the laws and proper procedures when operating a
motor vehicle in the vicinity of a school bus new text begin as required by section 169.446, subdivisions 2
and 3 new text end . Students enrolled in kindergarten through grade 10 who enroll in a school after the
second week of school and are transported by school bus and have not received training
in their previous school district shall undergo school bus safety training or receive bus
safety instructional materials within four weeks of the first day of attendance. new text begin Upon
request of the superintendent of schools, new text end the school transportation safety director in each
district must certify to the superintendent deleted text begin of schools annually deleted text end that all students transported
by school bus within the district have received the school bus safety training according to
this section. new text begin Upon request of the superintendent of the school district where the nonpublic
school is located, new text end the principal or other chief administrator of each nonpublic school must
certify deleted text begin annually deleted text end to the school transportation safety director of the district in which the
school is located that the school's students transported by school bus at public expense
have received training according to this section.

(d) A district and a nonpublic school with students transported by school bus at
public expense may provide kindergarten pupils with bus safety training before the first
day of school.

(e) A district and a nonpublic school with students transported by school bus at
public expense may also provide student safety education for bicycling and pedestrian
safety, for students enrolled in kindergarten through grade 5.

(f) A district and a nonpublic school with students transported by school bus at
public expense must make reasonable accommodations for the school bus safety training
of pupils known to speak English as a second language and pupils with disabilities.

(g) The district and a nonpublic school with students transported by school bus at
public expense must provide students enrolled in kindergarten through grade 3 school bus
safety training twice during the school year.

(h) A district and a nonpublic school with students transported by school bus at public
expense must conduct a school bus evacuation drill at least once during the school year.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2007.
new text end

Sec. 3.

Minnesota Statutes 2006, section 123B.92, subdivision 5, is amended to read:

Subd. 5.

District reports.

(a) Each district must report data to the department as
required by the department to account for transportation expenditures.

(b) Salaries and fringe benefits of district employees whose primary duties are
other than transportation, including central office administrators and staff, building
administrators and staff, teachers, social workers, school nurses, and instructional aides,
must not be included in a district's transportation expenditures, except that a district may
include salaries and benefits according to paragraph (c) for (1) an employee designated
as the district transportation director, (2) an employee providing direct support to the
transportation director, or (3) an employee providing direct transportation services such as
a bus driver or bus aide.

(c) Salaries and fringe benefits of the district employees listed in paragraph (b),
clauses (1), (2), and (3), who work part time in transportation and part time in other areas
must not be included in a district's transportation expenditures unless the district maintains
documentation of the employee's time spent on pupil transportation matters in the form
and manner prescribed by the department.

(d) Pupil transportation expenditures, excluding expenditures for capital outlay,
leased buses, student board and lodging, crossing guards, and aides on buses, must
be allocated among transportation categories based on cost-per-mile, cost-per-student,
cost-per-hour, or cost-per-route, regardless of whether the transportation services are
provided on district-owned or contractor-owned school buses. Expenditures for school
bus driver salaries and fringe benefits may either be directly charged to the appropriate
transportation category or may be allocated among transportation categories based
on cost-per-mile, cost-per-student, cost-per-hour, or cost-per-route. Expenditures
by private contractors or individuals who provide transportation exclusively in one
transportation category must be charged directly to the appropriate transportation category.
Transportation services provided by contractor-owned school bus companies incorporated
under different names but owned by the same individual or group of individuals must be
treated as the same company for cost allocation purposes.

new text begin (e) Notwithstanding paragraph (d), districts contracting for transportation services
are exempt from the standard cost allocation method for authorized and nonauthorized
transportation categories if the district (1) bid its contracts separately for authorized and
nonauthorized transportation categories, (2) received bids or quotes from more than one
vendor for these transportation categories or can demonstrate that efforts were made to
solicit bids or quotes through advertising, and (3) the district's cost-per-mile, cost-per-hour,
or cost-per-route does not vary more than ten percent among authorized transportation
categories, excluding expenditures for capital outlay, leased buses, student board and
lodging, crossing guards, special equipment, and aides on buses. If the costs reported by
the district for contractor-owned operations vary more than the parameters outlined above,
the department shall require the district to reallocate its transportation costs, excluding
salaries and fringe benefits of bus aids, among all categories.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment
and applies for fiscal year 2007 and later.
new text end

Sec. 4.

Minnesota Statutes 2006, section 169.01, subdivision 6, is amended to read:

Subd. 6.

School bus.

"School bus" means a motor vehicle used to transport pupils
to or from a school defined in section 120A.22, or to or from school-related activities, by
the school or a school district, or by someone under an agreement with the school or a
school district. A school bus does not include a motor vehicle transporting children to or
from school for which parents or guardians receive direct compensation from a school
district, a motor coach operating under charter carrier authority, a transit bus providing
services as defined in section 174.22, subdivision 7, deleted text begin a multifunction school activity bus
as defined by federal motor vehicle safety standards, deleted text end or a vehicle otherwise qualifying
as a type III vehicle under paragraph deleted text begin (5) deleted text end new text begin (6) new text end , when the vehicle is properly registered and
insured and being driven by an employee or agent of a school district for nonscheduled
or nonregular transportation. A school bus may be type A, type B, type C, deleted text begin or deleted text end type D, new text begin a
multifunctional school activity bus, new text end or type III as follows:

(1) A "type A school bus" is a deleted text begin van deleted text end conversion deleted text begin or deleted text end bus constructed utilizing a cutaway
front section vehicle with a left-side driver's door. deleted text begin The entrance door is behind the front
wheels. deleted text end This definition includes two classifications: type A-I, with a gross vehicle weight
rating (GVWR) deleted text begin less than or equal to 10,000 deleted text end new text begin 14,500 new text end pounds new text begin or less new text end ; and type A-II, with a
GVWR greater than deleted text begin 10,000 deleted text end new text begin 14,500 new text end pounds new text begin and less than or equal to 21,500 pounds new text end .

(2) A "type B school bus" is constructed utilizing a stripped chassis. The entrance
door is behind the front wheels. This definition includes two classifications: type B-I,
with a GVWR less than or equal to 10,000 pounds; and type B-II, with a GVWR greater
than 10,000 pounds.

(3) A "type C school bus" is constructed utilizing a chassis with a hood and front
fender assembly. The entrance door is behind the front wheels. new text begin A "type C school bus" also
includes a cutaway truck chassis or truck chassis with cab with or without a left side door
and with a GVWR greater than 21,500 pounds.
new text end

(4) A "type D school bus" is constructed utilizing a stripped chassis. The entrance
door is ahead of the front wheels.

(5) new text begin A "multifunctional school activity bus" is a bus that meets the federal motor
vehicle safety standards definition, except for vehicles classified as type III school buses
according to paragraph (6).
new text end

new text begin (6) new text end Type III school buses and type III Head Start buses are restricted to passenger
cars, station wagons, vans, and buses having a maximum manufacturer's rated seating
capacity of ten or fewer people, including the driver, and a gross vehicle weight rating of
10,000 pounds or less. In this subdivision, "gross vehicle weight rating" means the value
specified by the manufacturer as the loaded weight of a single vehicle. A "type III school
bus" and "type III Head Start bus" must not be outwardly equipped and identified as a type
A, B, C, or D school bus or type A, B, C, or D Head Start bus. A van or bus converted to a
seating capacity of ten or fewer and placed in service on or after August 1, 1999, must
have been originally manufactured to comply with the passenger safety standards.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2008.
new text end

Sec. 5.

Minnesota Statutes 2006, section 169.01, is amended by adding a subdivision
to read:

new text begin Subd. 92. new text end

new text begin Cellular phone. new text end

new text begin "Cellular phone" means a cellular, analog, wireless, or
digital telephone capable of sending or receiving telephone or text messages without
an access line for service.
new text end

Sec. 6.

Minnesota Statutes 2006, section 169.443, is amended by adding a subdivision
to read:

new text begin Subd. 9. new text end

new text begin Personal cellular phone call prohibition. new text end

new text begin A school bus driver may not
operate a school bus while communicating over, or otherwise operating, a cellular phone
for personal reasons, whether hand-held or hands free, when the vehicle is in motion.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2007.
new text end

Sec. 7.

Minnesota Statutes 2006, section 169.447, subdivision 2, is amended to read:

Subd. 2.

Driver seat belt.

deleted text begin New deleted text end School buses and Head Start buses deleted text begin manufactured
after December 31, 1994, deleted text end must be equipped with driver seat belts and seat belt assemblies
of the type described in section 169.685, subdivision 3. School bus drivers and Head
Start bus drivers must use these seat belts.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2007.
new text end

Sec. 8.

Minnesota Statutes 2006, section 169.4501, subdivision 1, is amended to read:

Subdivision 1.

National standards adopted.

Except as provided in sections
169.4502 and 169.4503, the construction, design, equipment, and color of types A, B, C,
deleted text begin and deleted text end D new text begin and multifunctional school activity bus new text end school buses used for the transportation
of school children shall meet the requirements of the "bus chassis standards" and "bus
body standards" in the deleted text begin 2000 deleted text end new text begin 2005 new text end edition of the "National School Transportation
Specifications and Procedures" adopted by the National deleted text begin Conference deleted text end new text begin Congress new text end on School
Transportation. Except as provided in section 169.4504, the construction, design, and
equipment of types A, B, C, deleted text begin and deleted text end D new text begin and multifunctional school activity bus new text end school buses
used for the transportation of students with disabilities also shall meet the requirements
of the "specially equipped school bus standards" in the deleted text begin 2000 deleted text end new text begin 2005 new text end National School
Transportation Specifications and Procedures. The "bus chassis standards," "bus body
standards," and "specially equipped school bus standards" sections of the deleted text begin 2000 deleted text end new text begin 2005 new text end
edition of the "National School Transportation Specifications and Procedures" are
incorporated by reference in this chapter.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2008.
new text end

Sec. 9.

Minnesota Statutes 2006, section 169.4501, subdivision 2, is amended to read:

Subd. 2.

Applicability.

(a) The standards adopted in this section and sections
169.4502 and 169.4503, govern the construction, design, equipment, and color of school
buses used for the transportation of school children, when owned or leased and operated
by a school or privately owned or leased and operated under a contract with a school.
Each school, its officers and employees, and each person employed under the contract is
subject to these standards.

(b) The standards apply to school buses manufactured after deleted text begin October 31, 2004 deleted text end new text begin
December 31, 2007 new text end . Buses complying with the standards when manufactured need not
comply with standards established later except as specifically provided for by law.

(c) A school bus manufactured on or before deleted text begin October 31, 2004 deleted text end new text begin December 31,
2007 new text end , must conform to the Minnesota standards in effect on the date the vehicle was
manufactured except as specifically provided for in law.

(d) A new bus body may be remounted on a used chassis provided that the remounted
vehicle meets state and federal standards for new buses which are current at the time of the
remounting. Permission must be obtained from the commissioner of public safety before
the remounting is done. A used bus body may not be remounted on a new or used chassis.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2008.
new text end

Sec. 10.

Minnesota Statutes 2006, section 169.4502, subdivision 5, is amended to read:

Subd. 5.

Electrical system; battery.

(a) The storage battery, as established by the
manufacturer's rating, must be of sufficient capacity to care for starting, lighting, signal
devices, heating, and other electrical equipment. In a bus with a gas-powered chassis, the
battery or batteries must provide a minimum of 800 cold cranking amperes. In a bus
with a diesel-powered chassis, the battery or batteries must provide a minimum of 1050
cold cranking amperes.

(b) In a type B bus with a gross vehicle weight rating of 15,000 pounds or more, and
type C and D buses, the battery shall be temporarily mounted on the chassis frame. The
final location of the battery and the appropriate cable lengths in these buses must comply
with the SBMI design objectives booklet.

(c) All batteries shall be mounted according to chassis manufacturers'
recommendations.

(d) In a type C bus, other than are powered by diesel fuel, a battery providing at least
550 cold cranking amperes may be installed in the engine compartment only if used in
combination with a generator or alternator of at least deleted text begin 120 deleted text end new text begin 130 new text end amperes.

(e) A bus with a gross vehicle weight rating of 15,000 pounds or less may be
equipped with a battery to provide a minimum of 550 cold cranking amperes only if used
in combination with an alternator of at least deleted text begin 80 deleted text end new text begin 130 new text end amperes. This paragraph does not
apply to those buses with wheelchair lifts or diesel engines.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2008.
new text end

Sec. 11.

Minnesota Statutes 2006, section 169.4503, subdivision 13, is amended to
read:

Subd. 13.

Identification.

(a) Each bus shall, in the beltline, identify the school
district serviced, or company name, or owner of the bus. Numbers necessary for
identification must appear on the sides and rear of the bus. Symbols or letters may
be used on the outside of the bus near the entrance door for student identification. A
manufacturer's nameplate or logo may be placed on the bus.

(b) Effective December 31, 1994, all new text begin type A, B, C, and D new text end buses sold must display
lettering "Unlawful to pass when red lights are flashing" on the rear of the bus. The
lettering shall be in two-inch black letters on school bus yellow background. This message
shall be displayed directly below the upper window of the rear door. On rear engine buses,
it shall be centered at approximately the same location. Only signs and lettering approved
or required by state law may be displayed.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2008.
new text end

Sec. 12.

Minnesota Statutes 2006, section 169.4503, subdivision 20, is amended to
read:

Subd. 20.

Seat and crash barriers.

new text begin (a) new text end All restraining barriers and passenger seats
shall be covered with a material that has fire retardant or fire block characteristics.

new text begin (b) All seats must have a minimum cushion depth of 15 inches and a seat back
height of at least 20 inches above the seating reference point.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2008.
new text end

Sec. 13.

Minnesota Statutes 2006, section 171.02, subdivision 2, is amended to read:

Subd. 2.

Driver's license classifications, endorsements, exemptions.

(a) Drivers'
licenses are classified according to the types of vehicles that may be driven by the holder
of each type or class of license. The commissioner may, as appropriate, subdivide the
classes listed in this subdivision and issue licenses classified accordingly.

(b) Except as provided in paragraph (c), clauses (1) and (2), and subdivision 2a, no
class of license is valid to operate a motorcycle, school bus, tank vehicle, double-trailer
or triple-trailer combination, vehicle transporting hazardous materials, or bus, unless
so endorsed. There are four general classes of licenses as described in paragraphs (c)
through (f).

(c) Class D drivers' licenses are valid for:

(1) operating all farm trucks if the farm truck is:

(i) controlled and operated by a farmer, including operation by an immediate family
member or an employee of the farmer;

(ii) used to transport agricultural products, farm machinery, or farm supplies,
including hazardous materials, to or from a farm;

(iii) not used in the operations of a common or contract motor carrier as governed by
Code of Federal Regulations, title 49, part 365; and

(iv) used within 150 miles of the farm;

(2) notwithstanding paragraph (b), operating an authorized emergency vehicle,
as defined in section 169.01, subdivision 5, whether or not in excess of 26,000 pounds
gross vehicle weight;

(3) operating a recreational vehicle as defined in section 168.011, subdivision 25,
that is operated for personal use;

(4) operating all single-unit vehicles except vehicles with a gross vehicle weight of
more than 26,000 pounds, vehicles designed to carry more than 15 passengers including
the driver, and vehicles that carry hazardous materials;

(5) notwithstanding paragraph (d), operating a type A school bus new text begin or a multifunctional
school activity bus new text end without a school bus endorsement if:

(i) deleted text begin the bus has a gross vehicle weight of 10,000 pounds or less;
deleted text end

deleted text begin (ii) deleted text end the bus is designed to transport 15 or fewer passengers, including the driver; deleted text begin and
deleted text end

deleted text begin (iii) deleted text end new text begin (ii) new text end the requirements of subdivision 2a are satisfied, as determined by the
commissioner; new text begin and
new text end

new text begin (iii) the type A school bus or a multifunctional school activity bus has a gross vehicle
weight of 14,500 pounds or less;
new text end

(6) operating any vehicle or combination of vehicles when operated by a licensed
peace officer while on duty; and

(7) towing vehicles if:

(i) the towed vehicles have a gross vehicle weight of 10,000 pounds or less; or

(ii) the towed vehicles have a gross vehicle weight of more than 10,000 pounds and
the combination of vehicles has a gross vehicle weight of 26,000 pounds or less.

(d) Class C drivers' licenses are valid for:

(1) operating class D motor vehicles;

(2) with a hazardous materials endorsement, transporting hazardous materials
in class D vehicles; and

(3) with a school bus endorsement, operating school buses designed to transport 15
or fewer passengers, including the driver.

(e) Class B drivers' licenses are valid for:

(1) operating all class C motor vehicles, class D motor vehicles, and all other
single-unit motor vehicles including, with a passenger endorsement, buses; and

(2) towing only vehicles with a gross vehicle weight of 10,000 pounds or less.

(f) Class A drivers' licenses are valid for operating any vehicle or combination of
vehicles.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2008.
new text end

Sec. 14.

Minnesota Statutes 2006, section 171.02, subdivision 2a, is amended to read:

Subd. 2a.

Exception for certain school bus drivers.

Notwithstanding subdivision
2, paragraph (c), the holder of a class D driver's license, without a school bus endorsement,
may operate a type A school bus new text begin or a multifunctional school activity bus new text end described in
subdivision 2, paragraph (b), under the following conditions:

(a) The operator is an employee of the entity that owns, leases, or contracts for the
school bus and is not solely hired to provide transportation services under this subdivision.

(b) The operator drives the school bus only from points of origin to points of
destination, not including home-to-school trips to pick up or drop off students.

(c) The operator is prohibited from using the new text begin type A school bus new text end eight-light system.
Violation of this paragraph is a misdemeanor.

(d) The operator's employer has adopted and implemented a policy that provides for
annual training and certification of the operator in:

(1) safe operation of the type of school bus the operator will be driving;

(2) understanding student behavior, including issues relating to students with
disabilities;

(3) encouraging orderly conduct of students on the bus and handling incidents of
misconduct appropriately;

(4) knowing and understanding relevant laws, rules of the road, and local school
bus safety policies;

(5) handling emergency situations; and

(6) safe loading and unloading of students.

(e) A background check or background investigation of the operator has been
conducted that meets the requirements under section 122A.18, subdivision 8, or 123B.03
for teachers; section 144.057 or chapter 245C for day care employees; or section 171.321,
subdivision 3, for all other persons operating a deleted text begin type A school bus deleted text end new text begin vehicle new text end under this
subdivision.

(f) Operators shall submit to a physical examination as required by section 171.321,
subdivision 2.

(g) The operator's driver's license is verified annually by the entity that owns, leases,
or contracts for the deleted text begin school bus deleted text end new text begin vehicle new text end .

(h) A person who sustains a conviction, as defined under section 609.02, of violating
section 169A.25, 169A.26, 169A.27, 169A.31, 169A.51, or 169A.52, or a similar statute
or ordinance of another state is precluded from operating a school bus for five years
from the date of conviction.

(i) A person who has ever been convicted of a disqualifying offense as defined in
section 171.3215, subdivision 1, paragraph (c), may not operate a school bus under this
subdivision.

(j) A person who sustains a conviction, as defined under section 609.02, of a fourth
moving offense in violation of chapter 169 is precluded from operating a school bus for
one year from the date of the last conviction.

(k) Students riding the deleted text begin school bus deleted text end new text begin vehicle new text end must have training required under section
123B.90, subdivision 2.

(l) An operator must be trained in the proper use of child safety restraints as set
forth in the National Highway Traffic Safety Administration's "Guideline for the Safe
Transportation of Pre-school Age Children in School Buses deleted text begin . deleted text end new text begin , new text end " new text begin if child safety restraints are
used by the passengers.
new text end

(m) Annual certification of the requirements listed in this subdivision must be
maintained under separate file at the business location for each operator licensed under
this subdivision and subdivision 2, paragraph (b), clause (5). The business manager,
school board, governing body of a nonpublic school, or any other entity that owns,
leases, or contracts for the school bus operating under this subdivision is responsible
for maintaining these files for inspection.

(n) The deleted text begin school bus deleted text end new text begin vehicle new text end must bear a current certificate of inspection issued under
section 169.451.

(o) new text begin On a type A school bus, new text end the word "School" on the front and rear of the bus
must be covered by a sign that reads "Activities" when the bus is being operated under
authority of this subdivision.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2008.
new text end

Sec. 15.

Minnesota Statutes 2006, section 171.321, subdivision 4, is amended to read:

Subd. 4.

Training.

(a) No person shall drive a class A, B, C, or D school bus when
transporting school children to or from school or upon a school-related trip or activity
without having demonstrated sufficient skills and knowledge to transport students in
a safe and legal manner.

(b) A bus driver must have training or experience that allows the driver to meet at
least the following competencies:

(1) safely operate the type of school bus the driver will be driving;

(2) understand student behavior, including issues relating to students with
disabilities;

(3) encourage orderly conduct of students on the bus and handle incidents of
misconduct appropriately;

(4) know and understand relevant laws, rules of the road, and local school bus
safety policies;

(5) handle emergency situations; and

(6) safely load and unload students.

(c) The commissioner of public safety shall develop a comprehensive model
school bus driver training program and model assessments for school bus driver training
competencies, which are not subject to chapter 14. A school district new text begin , nonpublic school, or
private contractor new text end may use alternative assessments for bus driver training competencies
with the approval of the commissioner of public safety. new text begin A driver may receive at least eight
hours of school bus in-service training any year, as an alternative to being assessed for bus
driver competencies after the initial year of being assessed for bus driver competencies.
new text end The employer shall keep the assessment new text begin or a record of the in-service training new text end for the
current period available for inspection by representatives of the commissioner.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2007.
new text end

Sec. 16. new text begin RULES REVISED: COMMISSIONER OF PUBLIC SAFETY.
new text end

new text begin Subdivision 1. new text end

new text begin Rules revised under the good cause exemption. new text end

new text begin The commissioner
of public safety must amend and adopt the revisions to the rules listed in subdivisions 2 to
8 under the good cause exemption to the rulemaking process under Minnesota Statutes,
section 14.388, subdivision 1, clause (3).
new text end

new text begin Subd. 2. new text end

new text begin Minnesota Rules, part 7470.0500. new text end

new text begin The commissioner of public safety
must amend Minnesota Rules, part 7470.0500, by replacing two obsolete references to the
Department of Children, Families, and Learning, with a reference to the Department of
Public Safety and removing references to specifically repealed rules.
new text end

new text begin Subd. 3. new text end

new text begin Minnesota Rules, part 7470.0700. new text end

new text begin The commissioner of public safety
must amend Minnesota Rules, part 7470.0700, as follows:
new text end

new text begin (1) for the points assigned to school bus equipment defects, strike the reference to
"orange" school buses and include a new school bus color exemption for multifunctional
school activity buses;
new text end

new text begin (2) replace the references to type I and type II school buses with type A, B, C,
or D school buses;
new text end

new text begin (3) exempt multifunctional school activity buses from the point reduction for not
having a stop arm; and
new text end

new text begin (4) exempt multifunctional school activity buses from the point reduction for not
having an eight-lamp warning lamp system.
new text end

new text begin Subd. 4. new text end

new text begin Minnesota Rules, part 7470.1000. new text end

new text begin The commissioner of public safety
must amend Minnesota Rules, part 7470.1000, to:
new text end

new text begin (1) include multifunctional school activity buses in the headnote;
new text end

new text begin (2) update subpart 1 to include multifunctional school activity buses as a type of
school bus listed after bus types A, B, C, and D;
new text end

new text begin (3) modify subpart 2 to clarify that the prohibition against loading or unloading while
adjacent to a turn lane applies only when it is a right-hand turn lane and does not prohibit a
bus from loading or unloading at the side of the road when there is a center turn lane; and
new text end

new text begin (3) expand the exception that allows service dogs on school buses to include all
companion animals.
new text end

new text begin Subd. 5. new text end

new text begin Minnesota Rules, part 7470.1100. new text end

new text begin The commissioner of public safety
must amend Minnesota Rules, part 7470.1100, to include multifunctional school activity
buses in the headnote and amend subpart 1 to include multifunctional school activity buses
as a type of school bus listed after bus types A, B, C, and D. The commissioner must also
amend item B of this part to require drivers to use prewarning flashing signals, flashing
red signals, and stop signals arms on buses that are equipped with those signals.
new text end

new text begin Subd. 6. new text end

new text begin Minnesota Rules, part 7470.1400. new text end

new text begin The commissioner of public safety
must amend Minnesota Rules, part 7470.1400, to clarify that the operating rules in parts
7470.1000 to 7470.1500 apply to buses that are leased and rented as well as to school
buses that are owned by a school district, a nonpublic school, or a private operator under
contract to a school district or nonpublic school.
new text end

new text begin Subd. 7. new text end

new text begin Minnesota Rules, part 7470.1500. new text end

new text begin The commissioner of public safety
must amend Minnesota Rules, part 7470.1500, to:
new text end

new text begin (1) clarify that the prohibition against loading or unloading while adjacent to a turn
lane applies only when it is a right-hand turn lane and does not prohibit a bus from loading
or unloading at the side of the road when there is a center turn lane; and
new text end

new text begin (2) delete item H because it is obsolete.
new text end

new text begin Subd. 8. new text end

new text begin Minnesota Rules, part 7470.1700. new text end

new text begin The commissioner of public safety
must amend Minnesota Rules, part 7470.1700, subpart 2, to:
new text end

new text begin (1) clarify that the bus driver and the bus aide must have access to emergency health
care information for the students with disabilities transported on the bus; and
new text end

new text begin (2) add an item E that allows the health information to be maintained either in a hard
copy on the vehicle or immediately accessible through a two-way communications system.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 17. new text begin REPEALER.
new text end

new text begin Minnesota Statutes 2006, sections 169.4502, subdivision 15; and 169.4503,
subdivisions 17, 18, and 26, new text end new text begin are repealed.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2008.
new text end

ARTICLE 11

EARLY CHILDHOOD AND ADULT PROGRAMS

Section 1.

Minnesota Statutes 2006, section 119A.52, is amended to read:

119A.52 DISTRIBUTION OF APPROPRIATION.

new text begin (a) new text end The commissioner of education must distribute money appropriated for that
purpose to federally designated Head Start programs to expand services and to serve
additional low-income children. Migrant and Indian reservation programs must be initially
allocated money based on the programs' share of federal funds. The remaining money
must be initially allocated to the remaining local agencies based equally on the agencies'
share of federal funds and on the proportion of eligible children in the agencies' service
area who are not currently being served. A Head Start deleted text begin grantee deleted text end new text begin program new text end must be funded
at a per child rate equal to its contracted, federally funded base level at the start of the
fiscal year. In allocating funds under this paragraph, the commissioner of education
must assure that each Head Start program in existence in 1993 is allocated no less
funding in any fiscal year than was allocated to that program in fiscal year 1993. Before
paying money to the programs, the commissioner must notify each program of its initial
allocation, how the money must be used, and the number of low-income children to be
served with the allocation based upon the federally funded per child rate. Each program
must present a plan under section 119A.535. For any deleted text begin grantee deleted text end new text begin program new text end that cannot utilize
its full allocation new text begin at the beginning of the fiscal year new text end , the commissioner must reduce the
allocation proportionately. Money available after the initial allocations are reduced must
be redistributed to eligible deleted text begin grantees deleted text end new text begin programs new text end .

new text begin (b) The commissioner must develop procedures to make payments to programs
based upon the number of children reported to be enrolled during the required time
period of program operations. Enrollment is defined by federal Head Start regulations.
The procedures must include a reporting schedule, corrective action plan requirements,
and financial consequences to be imposed on programs that do not meet full enrollment
after the period of corrective action. Programs reporting chronic underenrollment, as
defined by the commissioner, will have their subsequent program year allocation reduced
proportionately. Funds made available by prorating payments and allocations to programs
with reported underenrollment will be made available to the extent funds exist to fully
enrolled Head Start programs through a form and manner prescribed by the department.
new text end

Sec. 2.

Minnesota Statutes 2006, section 119A.535, is amended to read:

119A.535 APPLICATION REQUIREMENTS.

Eligible Head Start organizations must submit a plan to the department for approval
on a form and in the manner prescribed by the commissioner. The plan must include:

(1) the deleted text begin estimated deleted text end number of low-income children and families the program will be
able to serve;

(2) a description of the program design and service delivery area which meets the
needs of and encourages access by low-income working families;

(3) a program design that ensures fair and equitable access to Head Start services for
all populations and parts of the service area;

(4) a plan for deleted text begin coordinating services to maximize assistance for child care costs
available to families under chapter 119B deleted text end new text begin providing Head Start services in conjunction with
full-day child care programs to minimize child transitions, increase program intensity and
duration, and improve child and family outcomes as required in section 119A.5411 new text end ; and

(5) identification of regular Head Start, early Head Start, new text begin full-day services identified
in section 119A.5411, new text end and innovative services based upon demonstrated needs to be
provided.

Sec. 3.

new text begin [119A.5411] FULL-DAY REQUIREMENTS.
new text end

new text begin The following phase-in of full-day services in Head Start programs or licensed child
care as defined in chapter 245A is required:
new text end

new text begin (1) by fiscal year 2009, a minimum of 25 percent of the total state-funded enrollment
throughout the state must be provided in full-day services;
new text end

new text begin (2) by fiscal year 2011, a minimum of 40 percent of the total state-funded enrollment
throughout the state must be provided in full-day services; and
new text end

new text begin (3) by fiscal year 2013, a minimum of 50 percent of the total state-funded enrollment
throughout the state must be provided in full-day services.
new text end

new text begin Head Start programs may provide full-day services as part of their own program
model or through agreements with licensed full-day child care programs. If licensed child
care providers do not exist in a geographic area, choose not to participate, cannot meet
the federal Head Start performance standards after sufficient opportunity, or a Head Start
program is unable to establish the full-day services as a part of their own program model,
the Head Start program may request exemption from the commissioner.
new text end

Sec. 4.

Minnesota Statutes 2006, section 124D.13, subdivision 1, is amended to read:

Subdivision 1.

Establishment new text begin ; purpose new text end .

A district that provides a community
education program under sections 124D.18 and 124D.19 may establish an early childhood
family education program. Two or more districts, each of which provides a community
education program, may cooperate to jointly provide an early childhood family education
program. new text begin The purpose of the early childhood family education program is to provide
parenting education to support children's learning and development. new text end

Sec. 5.

Minnesota Statutes 2006, section 124D.13, subdivision 2, is amended to read:

Subd. 2.

Program deleted text begin characteristics deleted text end new text begin requirements new text end .

(a) Early childhood family
education programs are programs for children in the period of life from birth to
kindergarten, for the parents and other relatives of these children, and for expectant
parents. To the extent that funds are insufficient to provide programs for all children, early
childhood family education programs should emphasize programming for deleted text begin a child deleted text end new text begin children new text end
from birth to age three new text begin , new text end and deleted text begin encourage parents and other relatives to deleted text end new text begin for children at risk
of not being ready for kindergarten and the children's parents. Program providers also
are encouraged to new text end involve four- and five-year-old children new text begin and their families new text end in school
readiness programs, and other public and nonpublic early learning programs. new text begin A district
may not limit participation to school district residents. new text end Early childhood family education
programs deleted text begin may include the following deleted text end new text begin must provide new text end :

(1) programs to educate parents and other relatives about the physical, mental,
and emotional development of children;

(2) deleted text begin programs to enhance the skills of parents and other relatives in providing for their
children's learning and development deleted text end new text begin structured learning activities requiring interaction
between children and their parents or relatives new text end ;

(3) new text begin structured new text end learning deleted text begin experiences deleted text end new text begin activities new text end for children deleted text begin and parents and other
relatives deleted text end that promote children's development new text begin and positive interaction with peers, which
are held while parents or relatives attend parent education classes new text end ;

deleted text begin (4) activities designed to detect children's physical, mental, emotional, or behavioral
problems that may cause learning problems;
deleted text end

deleted text begin (5) activities and materials designed to encourage self-esteem, skills, and behavior
that prevent sexual and other interpersonal violence;
deleted text end

deleted text begin (6) educational materials which may be borrowed for home use;
deleted text end

deleted text begin (7) deleted text end new text begin (4) new text end information on related community resources;

deleted text begin (8) programs to prevent deleted text end new text begin (5) information, materials, and activities that support the
safety of children, including prevention of new text end child abuse and neglect; new text begin and
new text end

deleted text begin (9) other programs or activities to improve the health, development, and school
readiness of children; or
deleted text end

deleted text begin (10) activities designed to maximize development during infancy.
deleted text end

new text begin (6) a community outreach plan to ensure participation by families who reflect the
racial, cultural, and economic diversity of the school district.
new text end

The programs must not include activities for children that do not require substantial
involvement of the children's parents or other relatives. The deleted text begin programs deleted text end new text begin program new text end must be
reviewed periodically to assure the instruction and materials are not racially, culturally, or
sexually biased. The programs must encourage parents to be aware of practices that may
affect equitable development of children.

(b) For the purposes of this section, "relative" or "relatives" means noncustodial
grandparents or other persons related to a child by blood, marriage, adoption, or foster
placement, excluding parents.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 6.

Minnesota Statutes 2006, section 124D.13, subdivision 11, is amended to read:

Subd. 11.

Teachers new text begin and coordinators new text end .

A school board must employ necessary
qualified teachers new text begin licensed in early childhood or parent education new text end for its early childhood
family education programs. new text begin Coordinators of early childhood family education programs
shall meet, as a minimum, the licensure requirements for a teacher within the ECFE
program.
new text end

Sec. 7.

Minnesota Statutes 2006, section 124D.13, is amended by adding a subdivision
to read:

new text begin Subd. 13. new text end

new text begin Plan and program data submission requirements. new text end

new text begin (a) An early
childhood family education program must submit a biennial plan addressing the
requirements of subdivision 2 for approval by the commissioner. The plan must also
describe how the program provides parenting education and ensures participation of
families representative of the school district. A school district must submit the plan for
approval by the commissioner in the form and manner prescribed by the commissioner.
One-half of districts, as determined by the commissioner, must first submit a biennial plan
by April 1, 2009, and the remaining districts must first submit a plan by April 1, 2010.
new text end

new text begin (b) Districts receiving early childhood family education revenue under section
124D.135 must submit annual program data to the department by July 15 in the form and
manner prescribed by the commissioner.
new text end

new text begin (c) Beginning with levies for fiscal year 2011, a school district must submit its annual
program data to the department before it may certify a levy under section 124D.135.
Districts selected by the commissioner to submit a biennial plan by April 1, 2010, must
also have an approved plan on file with the commissioner before certifying a levy under
section 124D.135 for fiscal year 2011. Beginning with levies for fiscal year 2012, all
districts must submit annual program data and have an approved biennial plan on file with
the commissioner before certifying a levy under section 124D.135.
new text end

Sec. 8.

Minnesota Statutes 2006, section 124D.135, subdivision 1, is amended to read:

Subdivision 1.

Revenue.

The revenue for early childhood family education
programs for a school district equals $112 for fiscal year 2007 new text begin and $120 for fiscal year
2008 new text end and later, times the greater of:

(1) 150; or

(2) the number of people under five years of age residing in the district on October 1
of the previous school year.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for revenue for fiscal year 2008.
new text end

Sec. 9.

Minnesota Statutes 2006, section 124D.135, subdivision 3, is amended to read:

Subd. 3.

Early childhood family education levy.

deleted text begin For fiscal year 2001 to obtain
early childhood family education revenue, a district may levy an amount equal to the tax
rate of .5282 percent times the adjusted tax capacity of the district for the year preceding
the year the levy is certified. Beginning with levies for fiscal year 2002, deleted text end By September
30 of each year, the commissioner shall establish a tax rate for early childhood new text begin family new text end
education revenue that raises deleted text begin $21,027,000 for fiscal year 2002 and deleted text end $22,135,000 in new text begin each new text end
fiscal year deleted text begin 2003 and each subsequent year deleted text end . If the amount of the early childhood family
education levy would exceed the early childhood family education revenue, the early
childhood family education levy must equal the early childhood family education revenue. new text begin
Beginning with levies for fiscal year 2011, a district may not certify an early childhood
family education levy unless it has met the annual program data reporting and biennial
plan requirements under section 124D.13, subdivision 13.
new text end

Sec. 10.

Minnesota Statutes 2006, section 124D.135, subdivision 5, is amended to read:

Subd. 5.

Use of revenue restricted.

new text begin (a) new text end Early childhood family education revenue
may be used only for early childhood family education programs.

new text begin (b) new text end Not more than five percent of early childhood family education revenue, as
defined in subdivision 7, may be used to administer early childhood family education
programs.

new text begin (c) An early childhood family education program may use up to ten percent of its
early childhood family education revenue as defined in subdivision 1, including revenue
from participant fees, for equipment that is used in the early childhood family education
program. This revenue may only be used for the following purposes:
new text end

new text begin (1) to purchase or lease computers and related materials; and
new text end

new text begin (2) to purchase or lease equipment for instruction for participating children and
their families.
new text end

new text begin If a district anticipates an unusual circumstance requiring its early childhood family
education program capital expenditures to exceed the ten percent limitation, prior approval
to exceed the limit must be obtained in writing from the commissioner.
new text end

Sec. 11.

new text begin [124D.141] STATE ADVISORY BOARD ON SCHOOL READINESS.
new text end

new text begin Subdivision 1. new text end

new text begin Establishment. new text end

new text begin A 13-member State Advisory Board on School
Readiness is established in the Office of the Governor to advise the governor and the
legislature on developing a coordinated, efficient, and cost-effective system for delivering
throughout Minnesota early childhood programs that focus on early care and education,
health care, and family support.
new text end

new text begin Subd. 2. new text end

new text begin Board members; terms. new text end

new text begin (a) The advisory board includes the following
13 members:
new text end

new text begin (1) the commissioner of employment and economic development or the
commissioner's designee;
new text end

new text begin (2) the commissioner of health or the commissioner's designee;
new text end

new text begin (3) the commissioner of education or the commissioner's designee;
new text end

new text begin (4) the commissioner of human services or the commissioner's designee;
new text end

new text begin (5) six public members, one of whom is the parent of a child currently enrolled
in an early care and education program, five of whom are recognized experts in early
care and education, one of whom is a higher education representative, one of whom is a
licensed professional who currently provides student support services, and one of whom
is a currently practicing early childhood educator, appointed jointly by the majority and
minority leaders in the house of representatives and senate; and
new text end

new text begin (6) three public members who are community or business leaders, one of whom
is a member of the Minnesota Early Learning Foundation board of directors under
section 124D.175, appointed jointly by the speaker and minority leader in the house of
representatives and the majority and minority leaders in the senate.
new text end

new text begin (b) Members appointed by the speaker and minority leader in the house of
representatives and the majority and minority leaders in the senate serve staggered
three-year terms. Board members must nominate and elect a chair and other officers
from among the public members. Members initially appointed to the board shall assign
themselves by lot to terms of one, two, or three years. The chair must notify the governor
on the assignment of these terms. The board shall meet regularly at the times and places
the board determines. Meetings shall be called by the chair or at the written request of
any three members. Members' terms, compensation, removal, and vacancies are governed
by section 15.0575.
new text end

new text begin Subd. 3. new text end

new text begin Duties. new text end

new text begin (a) The board shall recommend to the governor and the legislature:
new text end

new text begin (1) the most effective method to improve the coordination and delivery of early care
and education services that integrates child care, early care and education programs,
and family support services and programs;
new text end

new text begin (2) a multiyear plan for effectively and efficiently coordinating and integrating
state services for early care and education, improving service delivery and standards
of care, avoiding duplication and fragmentation of service, and enhancing public and
private investment;
new text end

new text begin (3) methods for measuring the quality, quantity, and effectiveness of early care and
education programs throughout the state;
new text end

new text begin (4) how to identify and measure school readiness indicators on a regular basis;
new text end

new text begin (5) how to track, enhance, integrate, and coordinate federal, state, and local funds
allocated for early care and education and related family support services;
new text end

new text begin (6) policy changes to improve children's ability to start school ready to learn; and
new text end

new text begin (7) how to provide technical assistance to community efforts that promote school
readiness and encourage community organizations to collaborate in promoting school
readiness.
new text end

new text begin (b) In developing recommendations for the governor and the legislature under this
section, the board must evaluate on an ongoing basis:
new text end

new text begin (1) what government can do to enhance families' capacity to help themselves and
others; and
new text end

new text begin (2) the positive or negative effects of policies and programs recommended under this
section on families affected by these programs.
new text end

new text begin (c) The board shall convene policy work groups as necessary to make
recommendations to the governor and the legislature on:
new text end

new text begin (1) financing early childhood programs;
new text end

new text begin (2) building a coordinated service delivery system based on an assessment of early
childhood systems and available state and federal funding;
new text end

new text begin (3) integrating a coordinated, collaborative health care component, including
medical homes, parent education, family support, developmental health and early
education, into early childhood programs and avoiding duplication of services;
new text end

new text begin (4) enhancing the quality and measuring the cost of child care and preschool
programs; and
new text end

new text begin (5) improving the wages, benefits, and supply of early childhood professionals.
new text end

new text begin Subd. 4. new text end

new text begin Report. new text end

new text begin The task force annually by February 15 must report to the
education policy and finance committees of the legislature on the recommendations the
task force made during the preceding calendar year.
new text end

new text begin Subd. 5. new text end

new text begin Board expiration. new text end

new text begin The State Advisory Board on School Readiness
expires January 1, 2013.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 12.

Minnesota Statutes 2006, section 124D.16, subdivision 2, is amended to read:

Subd. 2.

Amount of aid.

(a) A district is eligible to receive school readiness aid
for eligible prekindergarten pupils enrolled in a school readiness program under section
124D.15 if the biennial plan required by section 124D.15, subdivision 3a, has been
approved by the commissioner.

(b) deleted text begin For fiscal year 2002 and thereafter, deleted text end A district must receive school readiness aid
equal to:

(1) the number of four-year-old children in the district on October 1 for the previous
school year times the ratio of 50 percent of the total school readiness aid new text begin entitlement new text end for
that year to the total number of four-year-old children reported to the commissioner for the
previous school year; plus

(2) the number of pupils enrolled in the school district from families eligible for the
free or reduced school lunch program for the previous school year times the ratio of 50
percent of the total school readiness aid new text begin entitlement new text end for that year to the total number of
pupils in the state from families eligible for the free or reduced school lunch program for
the previous school year.

new text begin (c) For fiscal year 2008 and later, the total statewide school readiness aid entitlement
equals $10,095,000.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for revenue for fiscal year 2008.
new text end

Sec. 13.

new text begin [124D.1625] EXPANDING DEPARTMENT DEVELOPMENTAL
ASSESSMENT ADMINISTERED TO ENTERING KINDERGARTNERS.
new text end

new text begin (a) The commissioner of education shall encourage school districts to implement the
voluntary school readiness kindergarten assessment initiative in the 2008-2009 school
year, to assess up to 30 percent of children.
new text end

new text begin (b) The commissioner must report the assessment results for the current school year
to the legislature by January 1 of the next year.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2007.
new text end

Sec. 14.

new text begin [124D.163] TARGETED TRAINING OF EARLY CHILDHOOD
PROFESSIONALS TO IMPROVE SCHOOL READINESS.
new text end

new text begin Subdivision 1. new text end

new text begin Establishment; purpose. new text end

new text begin The commissioner of education shall
provide a training program for the purpose of improving the school readiness of
prekindergarten children.
new text end

new text begin Subd. 2. new text end

new text begin Eligible participants. new text end

new text begin The training program is available to all staff in
school readiness programs as defined in section 124D.15, Head Start programs as defined
in section 119A.50, and child care centers as defined in chapter 245A. The commissioner
of education shall cooperate with the commissioner of human services to identify child
care center program and licensed family child care provider participants and implement
the training program for them.
new text end

new text begin Subd. 3. new text end

new text begin Training content. new text end

new text begin The commissioner shall develop three foundational
and sequential training modules on child observation, child and program assessment,
and curriculum planning.
new text end

new text begin Subd. 4. new text end

new text begin Availability. new text end

new text begin To the extent practical, the training must be made available
throughout the state on an ongoing basis. In addition to the geographic availability, the
commissioner shall consider the availability of training to meet the needs of diverse
cultural groups. Training materials may be translated and training may be delivered in
other languages as determined by the commissioner. The training may be provided
through a variety of methods that may include on-site and Web-based delivery.
new text end

Sec. 15.

new text begin [124D.165] EARLY CHILDHOOD SCHOLARSHIPS.
new text end

new text begin Subdivision 1. new text end

new text begin Purpose. new text end

new text begin The commissioner must establish an early childhood
scholarship fund to improve the school readiness of prekindergarten children at risk
of being unprepared for kindergarten. Scholarships are available for the purpose of
participating in an approved program as specified in subdivision 4 the year prior to
kindergarten entrance.
new text end

new text begin Subd. 2. new text end

new text begin Eligibility. new text end

new text begin A parent or legal guardian of a four-year-old child with a
household income that does not exceed 185 percent of the federal poverty guidelines,
adjusted for family size, is eligible to apply for an annual scholarship of up to $4,000 for
each eligible child.
new text end

new text begin Subd. 3. new text end

new text begin Scholarship application, award, and process. new text end

new text begin Parents or guardians
meeting the eligibility requirements defined in subdivision 2 may apply for a scholarship
certificate. Application must be made according to the form and manner prescribed by the
commissioner. The certificates must be redeemable for instruction at an approved early
childhood program, as specified in subdivision 4, for up to one year from the date of
issue or until the child for whom the scholarship is designated enrolls in kindergarten,
whichever occurs first. The commissioner shall annually award scholarship certificates to
eligible applicants in the order applications are received until all funds available for the
year have been obligated. Recipients may not transfer a scholarship certificate to another
person. The parent or guardian may transfer the scholarship certificate to another approved
early childhood program according to requirements established by the commissioner.
new text end

new text begin Subd. 4. new text end

new text begin Program approval. new text end

new text begin A program must be approved by the commissioner
to be eligible to receive state early childhood scholarship program funds on behalf of
an enrolled scholarship certificate recipient. Early childhood programs must apply for
approval in the form and manner prescribed by the commissioner and must be:
new text end

new text begin (1) a federally designated Head Start program as defined in section 119A.50;
new text end

new text begin (2) a school readiness program as defined in section 124D.15; or
new text end

new text begin (3) a licensed child care program as defined in chapter 245A.
new text end

new text begin The application must include evidence that the program provides research-based
instruction to support school readiness. Programs must submit any program changes
related to approval as they occur and must reapply for approval every three years.
new text end

new text begin Subd. 5. new text end

new text begin Payments to approved programs. new text end

new text begin The commissioner shall issue
payments of scholarship funds on a reimbursement basis to approved programs as defined
in subdivision 4 for services provided that are comparable to service costs for program
participants who do not receive a scholarship. Scholarship funds may not be used for
services that are available at no cost to nonscholarship recipient families. Approved
programs must maintain documentation of services provided and the commissioner shall
verify information submitted by approved programs to ensure appropriate services were
provided to eligible recipients for whom state early childhood scholarship funds are paid.
Scholarship funds awarded to families receiving other forms of assistance, such as child
care assistance, must be used to supplement and may not be used to supplant services
provided through that assistance.
new text end

new text begin Subd. 6. new text end

new text begin Scholarship not income for purposes of other publicly funded
programs. new text end

new text begin Notwithstanding any law to the contrary, the receipt of a scholarship does not
count as earned income for the purposes of medical assistance, MinnesotaCare, MFIP,
child care assistance, or Head Start programs.
new text end

Sec. 16.

Minnesota Statutes 2006, section 124D.175, is amended to read:

124D.175 MINNESOTA EARLY LEARNING FOUNDATION.

(a) The deleted text begin commissioner must make a grant to the deleted text end Minnesota Early Learning
Foundation deleted text begin to deleted text end new text begin may new text end implement an early childhood development grant program for
low-income and other challenged families that increases the effectiveness and expands
the capacity of public and nonpublic early childhood development programs, which may
include child care programs, and leads to improved early childhood parent education and
children's kindergarten readiness. The program deleted text begin must deleted text end new text begin may new text end include:

(1) grant awards to existing early childhood development program providers that
also provide parent education programs and to qualified providers proposing to implement
pilot programs for this same purpose;

(2) grant awards to enable low-income families to participate in these programs;

(3) grant awards to improve overall programmatic quality; and

(4) an evaluation of the programmatic and financial efficacy of all these programs,
which may be performed using measures of services, staffing, and management systems
that provide consistent information about system performance, show trends, confirm
successes, and identify potential problems in early childhood development programs.

This grant program must not supplant existing early childhood development programs
or child care funds.

deleted text begin (b) The commissioner must make a grant to a private nonprofit, section 501(c)(3)
organization to implement the requirements of paragraph (a). The private nonprofit
organization must be governed by a board of directors composed of members from the
public and nonpublic sectors, where the nonpublic sector members compose a simple
majority of board members and where the public sector members are state and local
government officials, kindergarten through grade 12 or postsecondary educators, and early
childhood providers appointed by the governor. Membership on the board of directors
by a state agency official are work duties for the official and are not a conflict of interest
under section . The board of directors must appoint an executive director and must
seek advice from geographically and ethnically diverse parents of young children and
representatives of early childhood development providers, kindergarten through grade 12
and postsecondary educators, public libraries, and the business sector.
deleted text end

deleted text begin The board of directors is subject to the open meeting law under chapter 13D.
All other terms and conditions under which board members serve and operate must be
described in the articles and bylaws of the organization. The private nonprofit organization
is not a state agency and is not subject to laws governing public agencies except the
provisions of chapter 13, salary limits under section deleted text begin 15A.0815, subdivision 2 deleted text end , and audits
by the legislative auditor under chapter 3 apply.
deleted text end

deleted text begin (c) deleted text end new text begin (b) new text end In addition to the duties under paragraph (a), the Minnesota Early Learning
Foundation (MELF) shall evaluate the effectiveness of deleted text begin the deleted text end new text begin a new text end voluntary deleted text begin NorthStar deleted text end quality
deleted text begin Improvement and deleted text end rating system. The deleted text begin NorthStar Quality Improvement and Rating System deleted text end
new text begin quality rating system new text end must:

(1) provide consumer information for parents on child care and early education
program quality and ratings;

(2) set indicators to identify quality in care and early education settings, including
licensed family child care and centers, tribal providers and programs, new text begin and new text end Head Start
deleted text begin and school-age deleted text end programs, and identify quality programs through ratings and ongoing
monitoring of programs;

(3) provide deleted text begin funds deleted text end new text begin resources and incentives new text end for provider improvement deleted text begin grants deleted text end and
quality achievement deleted text begin grants deleted text end ;

(4) require participating providers to deleted text begin incorporate the state's early learning standards
in their curriculum activities and develop appropriate child assessments aligned with the
kindergarten readiness assessment deleted text end new text begin implement a curriculum and child assessments that
align with the kindergarten through grade 2 standards new text end ;

(5) provide deleted text begin accountability for the NorthStar Quality Improvement and Rating
System's effectiveness in improving child outcomes and kindergarten readiness deleted text end new text begin an
evaluation of the quality rating system new text end ; and

(6) align current and new state investments to improve the quality of child care
with the deleted text begin NorthStar deleted text end quality deleted text begin Improvement and deleted text end rating system framework, by providing
accountability and informed parent choice.

new text begin (c) new text end The Minnesota Early Learning Foundation shall report back to the legislature deleted text begin by
January 15, 2008, deleted text end new text begin annually new text end on the progress being made under deleted text begin this paragraph deleted text end new text begin paragraphs
(a) and (b) new text end .

(d) This section expires June 30, deleted text begin 2011 deleted text end new text begin 2012 new text end . deleted text begin If no state appropriation is made for
purposes of this section, the commissioner must not implement paragraphs (a) and (b).
deleted text end

new text begin (e) A legislative advisory task force shall be established to meet with MELF
regarding pilot projects for scholarship programs, and regarding other programs and pilot
projects of a similar nature conducted in Minnesota or elsewhere. The task force shall
have eight members, appointed as follows: two members from the majority party of the
house of representatives, appointed by the speaker, one of whom shall be designated
the house of representatives cochair, and two from nonmajority members of the house
of representatives, appointed by the speaker with advice from the minority leader; two
members from the majority party in the senate, one of whom shall be designated the
senate cochair, and two from nonmajority members of the senate, appointed by the
senate subcommittee on committees. Appointments shall be balanced geographically,
with at least two members from substantially suburban districts and four members from
nonmetropolitan districts. The task force shall meet at least twice per year.
new text end

Sec. 17.

new text begin [124D.2211] AFTER-SCHOOL COMMUNITY LEARNING
PROGRAMS.
new text end

new text begin Subdivision 1. new text end

new text begin Establishment. new text end

new text begin A competitive statewide after-school community
learning grant program is established to provide grants to community or nonprofit
organizations, political subdivisions, for-profit or nonprofit child care centers, or
school-based programs that serve youth after school or during nonschool hours. The
commissioner shall develop criteria for after-school community learning programs.
new text end

new text begin Subd. 2. new text end

new text begin Program outcomes. new text end

new text begin The expected outcomes of the after-school
community learning programs are to increase:
new text end

new text begin (1) school connectedness of participants;
new text end

new text begin (2) academic achievement of participating students in one or more core academic
areas;
new text end

new text begin (3) the capacity of participants to become productive adults; and
new text end

new text begin (4) prevent truancy from school and prevent juvenile crime.
new text end

new text begin Subd. 3. new text end

new text begin Grants. new text end

new text begin An applicant shall submit an after-school community learning
program proposal to the commissioner. The submitted plan must include:
new text end

new text begin (1) collaboration with and leverage of existing community resources that have
demonstrated effectiveness;
new text end

new text begin (2) outreach to children and youth; and
new text end

new text begin (3) involvement of local governments, including park and recreation boards or
schools, unless no government agency is appropriate.
new text end

new text begin Proposals will be reviewed and approved by the commissioner.
new text end

Sec. 18.

Minnesota Statutes 2006, section 124D.531, subdivision 1, is amended to read:

Subdivision 1.

State total adult basic education aid.

(a) The state total adult basic
education aid for fiscal year 2005 is $36,509,000. The state total adult basic education
aid for fiscal year 2006 equals $36,587,000 plus any amount that is not paid for during
the previous fiscal year, as a result of adjustments under subdivision 4, paragraph (a), or
section 124D.52, subdivision 3. The state total adult basic education aid for fiscal year
2007 equals $37,673,000 plus any amount that is not paid for during the previous fiscal
year, as a result of adjustments under subdivision 4, paragraph (a), or section 124D.52,
subdivision 3. new text begin The state total adult basic education aid for fiscal year 2008 equals
$40,650,000, plus any amount that is not paid during the previous fiscal year as a result of
adjustments under subdivision 4, paragraph (a), or section 124D.52, subdivision 3. new text end The
state total adult basic education aid for later fiscal years equals:

(1) the state total adult basic education aid for the preceding fiscal year plus any
amount that is not paid for during the previous fiscal year, as a result of adjustments under
subdivision 4, paragraph (a), or section 124D.52, subdivision 3; times

(2) the lesser of:

(i) 1.03; or

(ii) the greater of 1.00 or the ratio of the state total contact hours in the first prior
program year to the state total contact hours in the second prior program year.

Beginning in fiscal year 2002, two percent of the state total adult basic education
aid must be set aside for adult basic education supplemental service grants under section
124D.522.

(b) The state total adult basic education aid, excluding basic population aid, equals
the difference between the amount computed in paragraph (a), and the state total basic
population aid under subdivision 2.

Sec. 19.

Minnesota Statutes 2006, section 124D.531, subdivision 4, is amended to read:

Subd. 4.

Adult basic education program aid limit.

(a) Notwithstanding
subdivisions 2 and 3, the total adult basic education aid for a program per prior year
contact hour must not exceed deleted text begin $21 deleted text end new text begin $22 new text end per prior year contact hour computed under
subdivision 3, clause (2).

(b) For fiscal year 2004, the aid for a program under subdivision 3, clause (2),
adjusted for changes in program membership, must not exceed the aid for that program
under subdivision 3, clause (2), for fiscal year 2003 by more than the greater of eight
percent or $10,000.

(c) For fiscal year 2005, the aid for a program under subdivision 3, clause (2),
adjusted for changes in program membership, must not exceed the sum of the aid for that
program under subdivision 3, clause (2), and Laws 2003, First Special Session chapter 9,
article 9, section 8, paragraph (a), for the preceding fiscal year by more than the greater of
eight percent or $10,000.

(d) For fiscal deleted text begin year deleted text end new text begin years new text end 2006 and deleted text begin later deleted text end new text begin 2007 new text end , the aid for a program under subdivision
3, clause (2), adjusted for changes in program membership, must not exceed the aid for
that program under subdivision 3, clause (2), for the first preceding fiscal year by more
than the greater of eight percent or $10,000.

new text begin (e) For fiscal year 2008, the aid for a program under subdivision 3, clause (2),
adjusted for changes in program membership, shall not be limited.
new text end

new text begin (f) For fiscal year 2009 and later, the aid for a program under subdivision 3, clause
(2), adjusted for changes in program membership, must not exceed the aid for that
program under subdivision 3, clause (2), for the first preceding fiscal year by more than
the greater of 11 percent or $10,000.
new text end

deleted text begin (e) deleted text end new text begin (g) new text end Adult basic education aid is payable to a program for unreimbursed costs
occurring in the program year as defined in section 124D.52, subdivision 3.

deleted text begin (f) deleted text end new text begin (h) new text end Any adult basic education aid that is not paid to a program because of the
program aid limitation under paragraph (a) must be added to the state total adult basic
education aid for the next fiscal year under subdivision 1. Any adult basic education aid
that is not paid to a program because of the program aid limitations under paragraph (b),
(c), or (d), must be reallocated among programs by adjusting the rate per contact hour
under subdivision 3, clause (2).

Sec. 20.

Minnesota Statutes 2006, section 124D.55, is amended to read:

124D.55 GENERAL EDUCATION DEVELOPMENT (GED) TEST FEES.

new text begin (a) new text end The commissioner shall pay deleted text begin 60 deleted text end new text begin 75 new text end percent of the fee that is charged to an eligible
individual for the full battery of a general education development (GED) test, but not
more than deleted text begin $20 deleted text end new text begin $75 new text end for an eligible individual.

new text begin (b) Notwithstanding paragraph (a), the commissioner shall pay 100 percent of the
initial fee for an eligible individual who is homeless or precariously housed, as determined
by the commissioner.
new text end

Sec. 21.

Minnesota Statutes 2006, section 124D.56, subdivision 1, is amended to read:

Subdivision 1.

Revenue amount.

A district that is eligible according to section
124D.20, subdivision 2, may receive revenue for a program for adults with disabilities.
Revenue for the program for adults with disabilities for a district or a group of districts
equals the lesser of:

(1) the actual expenditures for approved programs and budgets; or

(2) deleted text begin $60,000 deleted text end new text begin $75,000 new text end .

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for revenue for fiscal year 2008.
new text end

Sec. 22.

Minnesota Statutes 2006, section 124D.56, subdivision 2, is amended to read:

Subd. 2.

Aid.

Program aid for adults with disabilities equals the lesser of:

(1) one-half of the actual expenditures for approved programs and budgets; or

(2) deleted text begin $30,000 deleted text end new text begin $37,500 new text end .

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for revenue for fiscal year 2008.
new text end

Sec. 23.

Minnesota Statutes 2006, section 124D.56, subdivision 3, is amended to read:

Subd. 3.

Levy.

A district may levy for a program for adults with disabilities an
amount deleted text begin up to the amount designated deleted text end new text begin not to exceed the difference between the revenue
amount calculated in subdivision 1 and the aid amount calculated new text end in subdivision 2. In the
case of a program offered by a group of districts, the levy amount must be apportioned
among the districts according to the agreement submitted to the department.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for revenue for fiscal year 2008.
new text end

Sec. 24. new text begin EARLY CHILDHOOD COMMUNITY HUB PLANNING AND
IMPLEMENTATION GRANTS.
new text end

new text begin Subdivision 1. new text end

new text begin Establishment. new text end

new text begin (a) A two-year grant program is established to
increase children's school readiness and success using early childhood community hubs.
An early childhood community hub must promote children's school readiness from before
birth to kindergarten by coordinating and improving families' access to:
new text end

new text begin (1) community early care and education services;
new text end

new text begin (2) school;
new text end

new text begin (3) health services; and
new text end

new text begin (4) other family support services that stabilize, support, and assist families in
meeting their children's health and developmental needs.
new text end

new text begin (b) The commissioner of education shall designate at least four hubs to be established
under this section. One hub must be located in a rural area of the state, one must be in a
suburban area, and one must be in an urban area. The commissioner shall consider other
demographic and cultural factors to ensure that hubs are selected in diverse areas of the
state, and shall ensure that a significant number of participants in each area are eligible
for free or reduced-price lunch.
new text end

new text begin Subd. 2. new text end

new text begin Eligibility; application. new text end

new text begin (a) An applicant for a grant must be a school
district, a consortium of school districts, or a tribal school interested in collaborating with
community-based early childhood care and education providers to maximize the services
available to eligible families.
new text end

new text begin (b) An interested applicant must submit a plan to the commissioner of education,
in the form and manner the commissioner determines, to implement an early childhood
community hub that is located in a public school, a tribal school, or other appropriate
community location. An applicant must include in the plan a community-based assessment
of the existing resources and needs for providing high quality early care and education
services, health and mental health services, and other social services that support healthy
families and safe neighborhoods. A district superintendent or a designated representative,
or a tribal school principal or a designated representative, must oversee the community
collaboration.
new text end

new text begin Subd. 3. new text end

new text begin Program components. new text end

new text begin (a) Grant recipients must:
new text end

new text begin (1) provide for an ongoing assessment of local resources and needs for high quality
early care and education services, health and mental health services, and other social
services that support safe neighborhoods and healthy families;
new text end

new text begin (2) develop and implement, in consultation with an advisory committee under
subdivision 4, a plan to improve the healthy development and school readiness of children
from before birth to kindergarten;
new text end

new text begin (3) develop collaborative partnerships among school-based early childhood
programs, kindergarten teachers and other school officials, community-based Head
Start and child care programs including licensed centers, family child care homes,
and unlicensed family friend and neighbor caregivers, early intervention interagency
committees, and other appropriate partners that:
new text end

new text begin (i) use the Minnesota child care resource and referral network to provide parents
with information on quality early care and education services and financial aid options for
their children from birth to kindergarten;
new text end

new text begin (ii) provide high quality early care and education settings for children from birth to
kindergarten;
new text end

new text begin (iii) connect families to health, mental health, adult basic education, English
language learning, family literacy programs, and other relevant social services; and
new text end

new text begin (iv) promote shared professional development activities in early care and education
settings that integrate curriculum, assessment, and instruction and are aligned with
kindergarten through grade 12 standards;
new text end

new text begin (4) provide meaningful kindergarten transition services for families that begin one
school year before a child enters kindergarten;
new text end

new text begin (5) develop and implement an evaluation plan to determine the effectiveness of the
collaboration, the level of parent satisfaction, and children's kindergarten readiness before
and after participating in the program; and
new text end

new text begin (6) assign an unduplicated MARSS number to each child participating in the
program.
new text end

new text begin (b) An applicant must agree to contract with a qualified person to coordinate the hub
who, at a minimum, must have:
new text end

new text begin (1) a bachelor's degree in early childhood development or a related field;
new text end

new text begin (2) experience working with low-income families from diverse cultural communities;
and
new text end

new text begin (3) experience working with state and community school readiness providers.
new text end

new text begin (c) An applicant must agree to provide a 15 percent local match for any grant money
it receives, of which five percent may be in-kind contributions. A grant recipient must use
the grant, including the local match, to supplement but not supplant existing state-funded
early childhood initiatives in the community.
new text end

new text begin Subd. 4. new text end

new text begin Advisory committees. new text end

new text begin Each early childhood community hub grantee must
have an advisory committee, which may be a preexisting early childhood committee or
a newly formed early childhood advisory committee. A newly formed early childhood
advisory committee must include at least the following members selected by the school
administrator who oversees the community collaboration:
new text end

new text begin (1) 30 percent parents;
new text end

new text begin (2) the school administrator who oversees the community collaboration;
new text end

new text begin (3) licensed teachers for kindergarten through grade 3;
new text end

new text begin (4) licensed child care providers that include family child care and center-based
providers;
new text end

new text begin (5) Head Start providers;
new text end

new text begin (6) early childhood family education and school readiness providers;
new text end

new text begin (7) early childhood special education providers;
new text end

new text begin (8) a child care resource and referral agency;
new text end

new text begin (9) community business leaders;
new text end

new text begin (10) an early intervention interagency committee liaison;
new text end

new text begin (11) other appropriate community members serving young children and their
families; and
new text end

new text begin (12) an official from a county-recognized labor organization that serves as a partner
with licensed family day care providers.
new text end

new text begin Subd. 5. new text end

new text begin Evaluation. new text end

new text begin The commissioner must provide for an evaluation of this
grant program and must recommend to the education policy and finance committees of
the legislature by February 15, 2010, whether or not to expand the program throughout
the state.
new text end

Sec. 25. new text begin PROVISIONAL QUALITY RATING SYSTEM, LICENSED CHILD
CARE.
new text end

new text begin For fiscal year 2009 only, a licensed child care program shall receive a provisional
quality rating system approval if the provider certifies to the Department of Human
Services that it uses curricula and child assessment instruments approved by the
Department of Human Services, provides opportunities for parent involvement and parent
education, proves a program with sufficient intensity and duration to improve school
readiness of participating children, and meets other criteria determined necessary by the
commissioner of human services.
new text end

Sec. 26. new text begin PROVISIONAL QUALITY RATING SYSTEM, SCHOOL READINESS.
new text end

new text begin For fiscal year 2009 only, a school readiness program shall receive a provisional
quality rating system approval if the provider certifies to the Department of Education
that it uses curricula and child assessment instruments approved by the Department of
Education, provides opportunities for parent involvement and parent education, proves a
program with sufficient intensity and duration to improve school readiness of participating
children, and meets other criteria determined necessary by the commissioner of education.
new text end

Sec. 27.

new text begin SCHOLARSHIP DEMONSTRATION PROJECTS.
new text end

new text begin Subdivision 1. new text end

new text begin Early childhood allowance. new text end

new text begin The commissioners of human services
and education shall establish two scholarship demonstration projects to be conducted in
partnership with the Minnesota Early Learning Foundation to promote children's school
readiness. The demonstration projects shall be designed and evaluated by the Minnesota
Early Learning Foundation in consultation with the legislative advisory group. The
programs shall be conducted in nonurban areas outside the seven-county metropolitan area.
new text end

new text begin Subd. 2. new text end

new text begin Family eligibility. new text end

new text begin Parents or legal guardians with incomes less than or
equal to 185 percent of the federal poverty guidelines are eligible to receive allowances to
pay for their children's education in a quality early education program, in an amount not
to exceed $4,000 per child per year. The allowance must be used during the 12 months
following receipt of the allowance by the claimant for a child who is age 3 or 4 on August
31, to pay for services designed to promote school readiness in a quality early education
setting. A quality program is one that meets the standards in subdivision 3.
new text end

new text begin Subd. 3. new text end

new text begin Quality standards. new text end

new text begin (a) A quality early care and education setting is any
service or program that receives a quality rating from the Department of Human Services
under the Minnesota Early Learning Foundation quality rating system administered by
the Department of Human Services and agrees to accept a prekindergarten education
allowance to pay for services. For fiscal year 2008 and 2009 only, a provider may satisfy
the quality rating system requirements and be deemed eligible to participate in this
program if the provider has received a provisional quality rating system approval from
either the Department of Human Services or the Department of Education.
new text end

new text begin (b) For the purposes of receiving a provisional quality rating, a child care program or
provider must be approved by the commissioner of human services and a school readiness
program or a Head Start program must be approved by the commissioner of education.
Programs and providers must apply for approval in the form and manner prescribed by the
commissioners. To receive approval, the commissioners must determine that applicants:
new text end

new text begin (1) use research-based curricula that are aligned with the education standards under
Minnesota Statutes, section 120B.021, instruction, and child assessment instruments
approved by the Department of Education and the Department of Human Services, in
consultation with the Minnesota Early Learning Foundation;
new text end

new text begin (2) provide a program of sufficient intensity and duration to improve the school
readiness of participating children;
new text end

new text begin (3) provide opportunities for parent involvement; and
new text end

new text begin (4) meet other research-based criteria determined necessary by the commissioners.
new text end

new text begin (c) For 2008 and 2009, notwithstanding paragraph (b), Head Start programs
meeting Head Start performance standards and accredited child care centers are granted
a provisional quality rating for the purposes of receiving a prekindergarten education
allowance under this statute.
new text end

new text begin (d) A provider deemed eligible to receive a prekindergarten education allowance
under paragraphs (a) to (c) may use the allowance to enhance services above the current
quality levels, increase the duration of services provided, or expand the number of children
to whom services are provided.
new text end

new text begin (e) For fiscal years 2008 and 2009 only, when no quality program is available, a
recipient may direct the prekindergarten education allowance to a provider or program for
school readiness quality improvements that will make the provider or program eligible
for a quality rating according to the quality rating system. Allowable expenditures that
will increase the capacity of the provider or program to help children be ready for school
include purchase of curricula and assessment tools, training on the use of curriculum and
assessment tools, purchase of materials to improve the learning environment, or other
expenditures approved by the commissioner of human services for child care providers
and the commissioner of education for school readiness programs.
new text end

new text begin Subd. 4. new text end

new text begin Eligibility; applications. new text end

new text begin The Department of Human Services and
Department of Education shall, in cooperation with the Minnesota Early Learning
Foundation, develop an application process for eligible families. Eligible families
must have incomes less than or equal to 185 percent of the federal poverty guidelines.
Allowances paid to families under this program may not be counted as earned income
for the purposes of medical assistance, MinnesotaCare, MFIP, child care assistance, or
Head Start programs.
new text end

new text begin Subd. 5. new text end

new text begin Expenditures. new text end

new text begin This program shall operate during fiscal years 2008 and
2009.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment
and its provisions sunset on January 1, 2012.
new text end

Sec. 28. new text begin GRANT PROGRAM TO PROMOTE THE HEALTHY DEVELOPMENT
OF CHILDREN AND YOUTH WITHIN THEIR COMMUNITIES.
new text end

new text begin (a) The commissioner of education must contract with the Search Institute to help
local communities develop, expand, and maintain the tools, training, and resources needed
to foster positive child and youth development and effectively engage young people in
their communities. The Search Institute must educate individuals and community-based
organizations to adequately understand and meet the development needs of their children
and youth, use best practices to promote the healthy development of children and youth,
share best program practices with other interested communities, and create electronic and
other opportunities for communities to share experiences in and resources for promoting
the healthy development of children and youth.
new text end

new text begin (b) The commissioner of education must provide for an evaluation of the
effectiveness of this program and must recommend to the education policy and finance
committees of the legislature by February 15, 2010, whether or not to make the program
available statewide. The Search Institute annually must report to the commissioner of
education on the services it provided and the grant money it expended under this section.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 29. new text begin APPROPRIATION.
new text end

new text begin Subdivision 1. new text end

new text begin Department of Education. new text end

new text begin The sums indicated in this section are
appropriated from the general fund to the Department of Education for the fiscal years
designated.
new text end

new text begin Subd. 2. new text end

new text begin Early childhood family education aid. new text end

new text begin For early childhood family
education aid under Minnesota Statutes, section 124D.135:
new text end

	new text begin $ new text end	new text begin 21,106,000 new text end	new text begin ..... new text end	new text begin 2008 new text end
	new text begin $ new text end	new text begin 21,888,000 new text end	new text begin ..... new text end	new text begin 2009 new text end

new text begin The 2008 appropriation includes $1,796,000 for 2007 and $19,310,000 for 2008.
new text end

new text begin The 2009 appropriation includes $2,145,000 for 2008 and $19,743,000 for 2009.
new text end

new text begin Subd. 3. new text end

new text begin Targeted training of early childhood professionals. new text end

new text begin For the targeted
training of early childhood professionals under Minnesota Statutes, section 124D.163:
new text end

	new text begin $ new text end	new text begin 155,000 new text end	new text begin ..... new text end	new text begin 2008 new text end
	new text begin $ new text end	new text begin 70,000 new text end	new text begin ..... new text end	new text begin 2009 new text end

new text begin Any balance in the first year does not cancel but is available in the second year. The
base for this program in fiscal year 2010 and later is $70,000.
new text end

new text begin Subd. 4. new text end

new text begin Early childhood community hub planning and implementation grants.
new text end

new text begin For planning and implementation grants under section 24:
new text end

	new text begin $ new text end	new text begin 1,000,000 new text end	new text begin ..... new text end	new text begin 2008 new text end
	new text begin $ new text end	new text begin 1,000,000 new text end	new text begin ..... new text end	new text begin 2009 new text end

new text begin This is a onetime appropriation.
new text end

new text begin Subd. 5. new text end

new text begin Early childhood scholarships. new text end

new text begin For early childhood scholarships under
section 15:
new text end

	new text begin $ new text end	new text begin 392,000 new text end	new text begin ..... new text end	new text begin 2008 new text end
	new text begin $ new text end	new text begin 2,108,000 new text end	new text begin ..... new text end	new text begin 2009 new text end

new text begin This is a onetime appropriation.
new text end

new text begin Subd. 6. new text end

new text begin School readiness. new text end

new text begin For revenue for school readiness programs under
Minnesota Statutes, sections 124D.15 and 124D.16:
new text end

	new text begin $ new text end	new text begin 9,995,000 new text end	new text begin ..... new text end	new text begin 2008 new text end
	new text begin $ new text end	new text begin 10,095,000 new text end	new text begin ..... new text end	new text begin 2009 new text end

new text begin The 2008 appropriation includes $909,000 for 2007 and $9,086,000 for 2008.
new text end

new text begin The 2009 appropriation includes $1,009,000 for 2008 and $9,086,000 for 2009.
new text end

new text begin Subd. 7. new text end

new text begin State Advisory Board on School Readiness. new text end

new text begin For the State Advisory
Board on School Readiness under section 11:
new text end

	new text begin $ new text end	new text begin 46,000 new text end	new text begin ..... new text end	new text begin 2008 new text end
	new text begin $ new text end	new text begin 40,000 new text end	new text begin ..... new text end	new text begin 2009 new text end

new text begin The base for this program is $40,000 per year for fiscal year 2010 and later.
new text end

new text begin Subd. 8. new text end

new text begin Lifetrack Resources. new text end

new text begin For a contract with Lifetrack Resources to provide a
program in Ramsey County to expand school readiness and home visiting services for
children from birth to kindergarten who are at risk of or have been diagnosed with mental
illness or developmental delays due to fetal alcohol or drug exposure, child neglect, or
abuse, and their families in order to ensure the children's school readiness:
new text end

	new text begin $ new text end	new text begin 500,000 new text end	new text begin ..... new text end	new text begin 2008 new text end
	new text begin $ new text end	new text begin 500,000 new text end	new text begin ..... new text end	new text begin 2009 new text end

new text begin This is a onetime appropriation.
new text end

new text begin Subd. 9. new text end

new text begin Minnesota Learning Resource Center. new text end

new text begin For a grant to A Chance to
Grow/New Visions for the Minnesota Learning Resource Center's comprehensive training
program for education professionals charged with helping children acquire learning
readiness skills:
new text end

	new text begin $ new text end	new text begin 75,000 new text end	new text begin ..... new text end	new text begin 2008 new text end
	new text begin $ new text end	new text begin 75,000 new text end	new text begin ..... new text end	new text begin 2009 new text end

new text begin Any balance in the first year does not cancel but is available in the second year.
new text end

new text begin The Minnesota Learning Resource Center shall issue a report by January 15, 2009, to
the committees of the house of representatives and senate responsible for early childhood
programs. The report shall describe the conduct of the training provided to the A Chance
to Grow/New Visions program, and any findings or lessons learned that might prove
useful to the training of education professionals or the improvement of learning readiness
services for children from such training.
new text end

new text begin This is a onetime appropriation.
new text end

new text begin Subd. 10. new text end

new text begin Health and developmental screening aid. new text end

new text begin For health and developmental
screening aid under Minnesota Statutes, sections 121A.17 and 121A.19:
new text end

	new text begin $ new text end	new text begin 3,159,000 new text end	new text begin ..... new text end	new text begin 2008 new text end
	new text begin $ new text end	new text begin 3,330,000 new text end	new text begin ..... new text end	new text begin 2009 new text end

new text begin The 2008 appropriation includes $288,000 for 2007 and $2,871,000 for 2008.
new text end

new text begin The 2009 appropriation includes $319,000 for 2008 and $3,011,000 for 2009.
new text end

new text begin Subd. 11. new text end

new text begin Educate parents partnership. new text end

new text begin For the educate parents partnership under
Minnesota Statutes, section 124D.129:
new text end

	new text begin $ new text end	new text begin 50,000 new text end	new text begin ..... new text end	new text begin 2008 new text end
	new text begin $ new text end	new text begin 50,000 new text end	new text begin ..... new text end	new text begin 2009 new text end

new text begin Subd. 12. new text end

new text begin Kindergarten entrance assessment initiative and intervention
program. new text end

new text begin For the kindergarten entrance assessment initiative and intervention program
under Minnesota Statutes, section 124D.162:
new text end

	new text begin $ new text end	new text begin 584,000 new text end	new text begin ..... new text end	new text begin 2008 new text end
	new text begin $ new text end	new text begin 776,000 new text end	new text begin ..... new text end	new text begin 2009 new text end

new text begin Subd. 13. new text end

new text begin Head Start programs. new text end

new text begin For Head Start programs under Minnesota
Statutes, section 119A.52:
new text end

	new text begin $ new text end	new text begin 20,100,000 new text end	new text begin ..... new text end	new text begin 2008 new text end
	new text begin $ new text end	new text begin 20,100,000 new text end	new text begin ..... new text end	new text begin 2009 new text end

new text begin Of these amounts, up to 10 percent of the funds allocated to local Head Start
programs annually may be used for innovative services designed either to target Head
Start resources to particular at-risk groups of children or to provide services in addition
to those currently allowable under federal Head Start regulations. Head Start programs
must submit a plan for innovative services as part of the application process described
under Minnesota Statutes, section 119A.535.
new text end

new text begin Any balance in the first year does not cancel but is available in the second year.
new text end

new text begin Subd. 14. new text end

new text begin Community education aid. new text end

new text begin For community education aid under
Minnesota Statutes, section 124D.20:
new text end

	new text begin $ new text end	new text begin 1,307,000 new text end	new text begin ..... new text end	new text begin 2008 new text end
	new text begin $ new text end	new text begin 816,000 new text end	new text begin ..... new text end	new text begin 2009 new text end

new text begin The 2008 appropriation includes $195,000 for 2007 and $1,112,000 for 2008.
new text end

new text begin The 2009 appropriation includes $123,000 for 2008 and $693,000 for 2009.
new text end

new text begin Subd. 15. new text end

new text begin Adults with disabilities program aid. new text end

new text begin For adults with disabilities
programs under Minnesota Statutes, section 124D.56:
new text end

	new text begin $ new text end	new text begin 881,000 new text end	new text begin ..... new text end	new text begin 2008 new text end
	new text begin $ new text end	new text begin 900,000 new text end	new text begin ..... new text end	new text begin 2009 new text end

new text begin The 2008 appropriation includes $71,000 for 2007 and $810,000 for 2008.
new text end

new text begin The 2009 appropriation includes $90,000 for 2008 and $810,000 for 2009.
new text end

new text begin School districts operating existing adults with disabilities programs that are not fully
funded shall receive full funding for the program beginning in fiscal year 2008 before the
commissioner awards grants to other districts.
new text end

new text begin Subd. 16. new text end

new text begin Hearing-impaired adults. new text end

new text begin For programs for hearing-impaired adults
under Minnesota Statutes, section 124D.57:
new text end

	new text begin $ new text end	new text begin 70,000 new text end	new text begin ..... new text end	new text begin 2008 new text end
	new text begin $ new text end	new text begin 70,000 new text end	new text begin ..... new text end	new text begin 2009 new text end

new text begin Subd. 17. new text end

new text begin School-age care revenue. new text end

new text begin For extended day aid under Minnesota
Statutes, section 124D.22:
new text end

	new text begin $ new text end	new text begin 1,000 new text end	new text begin ..... new text end	new text begin 2008 new text end
	new text begin $ new text end	new text begin 1,000 new text end	new text begin ..... new text end	new text begin 2009 new text end

new text begin The 2008 appropriation includes $0 for 2007 and $1,000 for 2008.
new text end

new text begin The 2009 appropriation includes $0 for 2008 and $1,000 for 2009.
new text end

new text begin Subd. 18. new text end

new text begin After-school community learning grants. new text end

new text begin For after-school community
learning grants:
new text end

	new text begin $ new text end	new text begin 2,775,000 new text end	new text begin ..... new text end	new text begin 2008 new text end
	new text begin $ new text end	new text begin 2,600,000 new text end	new text begin ..... new text end	new text begin 2009 new text end

new text begin The commissioner may hire one full-time equivalent staff person to administer the
statewide after-school community learning grant program.
new text end

new text begin The Department of Education shall give strong consideration to an application
for a grant under this subdivision by Independent School District No. 625, St. Paul, on
behalf of the city of St. Paul to increase the number and quality of after school and school
release time activities for children within the school district. A grant provided under this
subdivision to Independent School District No. 625, St. Paul, in partnership with the
city of St. Paul must improve opportunities for learning provided by the district and by
nonprofit programs serving youth, and for staff development for library and park and
recreation workers who have frequent contact with children.
new text end

new text begin This is a onetime appropriation.
new text end

new text begin Subd. 19. new text end

new text begin Children and youth healthy development grant. new text end

new text begin For children and youth
healthy development grant under section 28:
new text end

	new text begin $ new text end	new text begin 250,000 new text end	new text begin ..... new text end	new text begin 2008 new text end
	new text begin $ new text end	new text begin 250,000 new text end	new text begin ..... new text end	new text begin 2009 new text end

new text begin This is a onetime appropriation.
new text end

new text begin Subd. 20. new text end

new text begin Adult basic education aid. new text end

new text begin For adult basic education aid under
Minnesota Statutes, section 124D.531:
new text end

	new text begin $ new text end	new text begin 40,347,000 new text end	new text begin ..... new text end	new text begin 2008 new text end
	new text begin $ new text end	new text begin 41,745,000 new text end	new text begin ..... new text end	new text begin 2009 new text end

new text begin The 2008 appropriation includes $3,759,000 for 2007 and $36,588,000 for 2008.
new text end

new text begin The 2009 appropriation includes $4,065,000 for 2008 and $37,680,000 for 2009.
new text end

new text begin Subd. 21. new text end

new text begin GED test fees. new text end

new text begin For GED test fees under Minnesota Statutes, section
124D.55:
new text end

	new text begin $ new text end	new text begin 300,000 new text end	new text begin ..... new text end	new text begin 2008 new text end
	new text begin $ new text end	new text begin 200,000 new text end	new text begin ..... new text end	new text begin 2009 new text end

new text begin $100,000 in fiscal year 2008 is for GED test fees for homeless persons.
new text end

new text begin Any balance in the first year does not cancel but is available in the second year.
new text end

new text begin Subd. 22. new text end

new text begin Adult literacy grants for recent immigrants. new text end

new text begin For adult literacy grants
for recent immigrants to Minnesota under Laws 2006, chapter 282, article 2, section 26:
new text end

new text begin $ new text end

new text begin 1,250,000 new text end

new text begin ..... new text end

new text begin 2008 new text end

new text begin Subd. 23. new text end

new text begin Minnesota Early Learning Foundation. new text end

new text begin For a grant to the Minnesota
Early Learning Foundation for the scholarship demonstration projects in section 27:
new text end

	new text begin $ new text end	new text begin 1,250,000 new text end	new text begin ..... new text end	new text begin 2008 new text end
	new text begin $ new text end	new text begin 1,250,000 new text end	new text begin ..... new text end	new text begin 2009 new text end

new text begin Any balance in the first year does not cancel but is available in the second year.
new text end

new text begin This is a onetime appropriation.
new text end

Sec. 30. new text begin DEPARTMENT OF HEALTH.
new text end

new text begin $100,000 in fiscal year 2008 and $100,000 in fiscal year 2009 are appropriated from
the general fund to the commissioner of health for lead hazard reduction.
new text end

Sec. 31. new text begin REPEALER.
new text end

new text begin Minnesota Statutes 2006, section 124D.531, subdivision 5, new text end new text begin is repealed.
new text end