ARTICLE 1

K-12 EDUCATION

120B.024 GRADUATION REQUIREMENTS; COURSE CREDITS.

new text begin [120B.299] DEFINITIONS.
new text end

120B.30 STATEWIDE TESTING AND REPORTING SYSTEM.

120B.31 SYSTEM ACCOUNTABILITY AND STATISTICAL
ADJUSTMENTS.

120B.35 STUDENT ACADEMIC ACHIEVEMENT AND deleted text beginPROGRESSdeleted text endnew text begin
GROWTHnew text end.

120B.36 SCHOOL ACCOUNTABILITY; APPEALS PROCESS.

120B.362 new text beginGROWTH-BASED new text endVALUE-ADDED ASSESSMENT PROGRAM.

122A.21 TEACHERS' AND ADMINISTRATORS' LICENSES; FEES.

new text begin [121A.215] LOCAL SCHOOL DISTRICT WELLNESS POLICIES;
WEB SITE.
new text end

123B.62 BONDS FOR CERTAIN CAPITAL FACILITIES.

new text begin [124D.041] RECIPROCITY WITH ADJOINING STATES.
new text end

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

126C.44 SAFE SCHOOLS LEVY.

126C.51 APPLICATION OF LIMITING TAX LEGISLATION.

126C.53 ENABLING RESOLUTION; FORM OF CERTIFICATES OF
INDEBTEDNESS.

126C.55 STATE PAYMENT OF DEBT OBLIGATION UPON POTENTIAL
DEFAULT; REPAYMENT; STATE OBLIGATION NOT DEBT.

new text begin [127A.331] SCHOOL ENDOWMENT FUND; USE OF REVENUE.
new text end

ARTICLE 4

HIGHER EDUCATION

new text begin [127A.70] MINNESOTA P-20 EDUCATION PARTNERSHIP.
new text end

136A.126 INDIAN SCHOLARSHIPS.

136A.127 ACHIEVE SCHOLARSHIP PROGRAM.

HF 1812

ARTICLE 1

K-12 EDUCATION

120B.024 GRADUATION REQUIREMENTS; COURSE CREDITS.

new text begin [120B.299] DEFINITIONS. new text end

120B.30 STATEWIDE TESTING AND REPORTING SYSTEM.

120B.31 SYSTEM ACCOUNTABILITY AND STATISTICAL ADJUSTMENTS.

120B.35 STUDENT ACADEMIC ACHIEVEMENT AND deleted text beginPROGRESSdeleted text endnew text begin GROWTHnew text end.

120B.36 SCHOOL ACCOUNTABILITY; APPEALS PROCESS.

120B.362 new text beginGROWTH-BASED new text endVALUE-ADDED ASSESSMENT PROGRAM.

122A.21 TEACHERS' AND ADMINISTRATORS' LICENSES; FEES.

new text begin [120B.299] DEFINITIONS.
new text end

120B.31 SYSTEM ACCOUNTABILITY AND STATISTICAL
ADJUSTMENTS.

120B.35 STUDENT ACADEMIC ACHIEVEMENT AND deleted text beginPROGRESSdeleted text endnew text begin
GROWTHnew text end.

new text begin [121A.215] LOCAL SCHOOL DISTRICT WELLNESS POLICIES;
WEB SITE.
new text end

new text begin [124D.041] RECIPROCITY WITH ADJOINING STATES.
new text end

Section 1.

Subdivision 1.

new text begin EFFECTIVE DATE. new text end

Sec. 2.

new text begin EFFECTIVE DATE. new text end

Sec. 3.

Subd. 2.

new text begin EFFECTIVE DATE. new text end

Sec. 4.

new text begin Subdivision 1. new text end

new text begin Subd. 2. new text end

new text begin Subd. 3. new text end

new text begin Subd. 4. new text end

new text begin Subd. 5. new text end

new text begin Subd. 6. new text end

new text begin EFFECTIVE DATE. new text end

Sec. 5.

Subdivision 1.

Subd. 1a.

Subd. 2.

Subd. 3.

Subd. 4.

new text begin EFFECTIVE DATE. new text end

Sec. 6.

Subdivision 1.

Subd. 2.

Subd. 3.

Subd. 4.

new text begin EFFECTIVE DATE. new text end

Sec. 7.

Subdivision 1.

Subd. 2.

Subd. 3.

Subd. 4.

Subd. 5.

new text begin EFFECTIVE DATE. new text end

Sec. 8.

Subdivision 1.

Subd. 2.

new text begin EFFECTIVE DATE. new text end

Sec. 9.

new text begin EFFECTIVE DATE. new text end

Sec. 10.

new text begin Subdivision 1. new text end

new text begin Subd. 2. new text end

Sec. 11.

new text begin EFFECTIVE DATE. new text end

Sec. 12.

Subd. 21.

new text begin EFFECTIVE DATE. new text end

Sec. 13.

Subdivision 1.

new text begin EFFECTIVE DATE. new text end

Sec. 14.

Subdivision 1.

new text begin EFFECTIVE DATE. new text end

Sec. 15.

new text begin EFFECTIVE DATE. new text end

Sec. 16.

Subd. 3.

Sec. 17.

Subd. 6.

Sec. 18.

Subd. 8.

Sec. 19.

Subd. 9.

Sec. 20.

new text begin Subdivision 1. new text end

new text begin Subd. 2. new text end

new text begin Subd. 3. new text end

Sec. 21.

new text begin Subd. 2a. new text end

Sec. 22.

Subd. 20.

new text begin EFFECTIVE DATE. new text end

Sec. 23.

Subdivision 1.

Sec. 24.

Sec. 25.

new text begin Subd. 11. new text end

new text begin EFFECTIVE DATE. new text end

Sec. 26.

new text begin Subd. 4a. new text end

Sec. 27.

Subd. 31.

Sec. 28.

new text begin Subd. 31c. new text end

Sec. 29.

Subd. 9.

new text begin EFFECTIVE DATE. new text end

Sec. 30.

Subdivision 1.

new text begin EFFECTIVE DATE. new text end

Sec. 31.

Subd. 3.

new text begin EFFECTIVE DATE. new text end

Sec. 32.

new text begin EFFECTIVE DATE. new text end

Sec. 33.

new text begin EFFECTIVE DATE. new text end

Sec. 34.

Subd. 2.

new text begin EFFECTIVE DATE. new text end

Sec. 35.

new text begin Subd. 3. new text end

new text begin EFFECTIVE DATE. new text end

Sec. 36.

new text begin EFFECTIVE DATE. new text end

Sec. 37.

Subdivision 1.

Subd. 2.

Subd. 3.

Subd. 4.

new text begin Subd. 4a. new text end

Subd. 6.

Subd. 7.

Subd. 8.

Subd. 9.

Subd. 10.

new text begin EFFECTIVE DATE. new text end

Sec. 38.

new text begin EFFECTIVE DATE. new text end

Sec. 39.

Subd. 16.

Sec. 40.

Subd. 13.

new text begin EFFECTIVE DATE. new text end

Sec. 41.

Subd. 2.

new text begin EFFECTIVE DATE. new text end

Sec. 42.

Subd. 9.

new text begin EFFECTIVE DATE. new text end

Sec. 43.

Subd. 5.

new text begin EFFECTIVE DATE. new text end

Sec. 44.

Sec. 4. APPROPRIATIONS; DEPARTMENT OF EDUCATION.

Subdivision 1.

Subd. 2.

Sec. 45.

Subdivision 1.

new text begin EFFECTIVE DATE. new text end

Sec. 46.

Subd. 2.

new text begin EFFECTIVE DATE. new text end

Sec. 47.

Subd. 6.

new text begin EFFECTIVE DATE. new text end

Sec. 48. new text beginFUND TRANSFERS.
new text end

new text begin Subdivision 1. new text end

new text begin Subd. 2. new text end

new text begin Subd. 3. new text end

new text begin EFFECTIVE DATE. new text end

Sec. 49. new text beginONETIME GENERAL EDUCATION REVENUE INCREASE; FISCAL
YEAR 2009 ONLY.
new text end

Sec. 50. new text beginALTERNATIVE TEACHER COMPENSATION AID.
new text end

new text begin EFFECTIVE DATE. new text end

Sec. 51. new text beginIMPLEMENTING A STUDENT GROWTH-BASED VALUE-ADDED
SYSTEM.
new text end

new text begin EFFECTIVE DATE. new text end

Sec. 52. new text beginIMPLEMENTING RIGOROUS COURSEWORK MEASURES
RELATED TO STUDENT PERFORMANCE.
new text end

new text begin EFFECTIVE DATE. new text end

Sec. 53. new text beginIMPLEMENTING MEASURES FOR ASSESSING STUDENTS'
SELF-REPORTED SENSE OF SCHOOL SAFETY, ENGAGEMENT IN
SCHOOL, AND THE QUALITY OF RELATIONSHIPS WITH TEACHERS,
ADMINISTRATORS, AND OTHER STUDENTS.
new text end

new text begin EFFECTIVE DATE. new text end

Sec. 54. new text beginGROWTH-BASED VALUE-ADDED SYSTEM.
new text end

new text begin EFFECTIVE DATE. new text end

Sec. 55. new text beginEXPEDITED PROCESS; SPECIFIC LEARNING DISABILITIES
RULE.
new text end

new text begin EFFECTIVE DATE. new text end

Sec. 56. new text beginENDING PARTICIPATION IN NO CHILD LEFT BEHIND.
new text end

Sec. 57. new text beginSCHOOL DISTRICT PLANS TO IMPROVE STUDENTS' ACADEMIC
ACHIEVEMENT.
new text end

new text begin Subdivision 1. new text end

new text begin Subd. 2. new text end

new text begin EFFECTIVE DATE. new text end

Sec. 58. new text beginADVISORY TASK FORCE ON IMPROVING STUDENTS'
ACADEMIC ACHIEVEMENT.
new text end

new text begin EFFECTIVE DATE. new text end

Sec. 59. new text beginAPPROPRIATIONS.
new text end

new text begin Subdivision 1. new text end

new text begin Subd. 2. new text end

Section 1. new text begin SUMMARY OF APPROPRIATIONS
new text end

Sec. 2. new text beginMINNESOTA OFFICE OF HIGHER
EDUCATION
new text end

Sec. 3. new text beginBOARD OF TRUSTEES OF THE
MINNESOTA STATE COLLEGES AND
UNIVERSITIES
new text end

Sec. 4. new text beginBOARD OF REGENTS OF THE
UNIVERSITY OF MINNESOTA
new text end

Sec. 5.

Subd. 3.

Sec. 6.

new text begin Subd. 11. new text end

new text begin EFFECTIVE DATE. new text end

Sec. 7.

new text begin Subdivision 1. new text end

new text begin Subd. 2. new text end

new text begin Subd. 3. new text end

new text begin EFFECTIVE DATE. new text end

Sec. 8.

Subd. 8.

Sec. 9.

Subd. 5.

Sec. 10.

Subd. 7a.

Sec. 11.

new text begin Subdivision 1. new text end

new text begin Subd. 2. new text end

new text begin Subd. 3. new text end

new text begin Subd. 4. new text end

new text begin EFFECTIVE DATE. new text end

Sec. 12.

Subdivision 1.

Subd. 2.

Subd. 3.

Subd. 4.

Subd. 5.

Subd. 6.

Subd. 7.

Subd. 8.

Subd. 9.

Subd. 10.

Subd. 11.

Subd. 12.

Subd. 13.

Subd. 14.

new text begin EFFECTIVE DATE. new text end

Sec. 13.

new text begin Subd. 4. new text end

new text begin EFFECTIVE DATE. new text end

Sec. 14.

Subdivision 1.

Sec. 15.

Subd. 3.

Sec. 16.

Subd. 5.

Sec. 17.

Subd. 6.

Sec. 18.

Subd. 7.

Sec. 19.

Bill Text Versions

Section 1.

Subdivision 1.

new text begin EFFECTIVE DATE. new text end

Sec. 2.

new text begin EFFECTIVE DATE. new text end

Sec. 3.

Subd. 2.

new text begin EFFECTIVE DATE. new text end

Sec. 4.

new text begin Subdivision 1. new text end

new text begin Subd. 2. new text end

new text begin Subd. 3. new text end

new text begin Subd. 4. new text end

new text begin Subd. 5. new text end

new text begin Subd. 6. new text end

new text begin EFFECTIVE DATE. new text end

Sec. 5.

Subdivision 1.

Subd. 1a.

Subd. 2.

Subd. 3.

Subd. 4.

new text begin EFFECTIVE DATE. new text end

Sec. 6.

Subdivision 1.

Subd. 2.

Subd. 3.

Subd. 4.

new text begin EFFECTIVE DATE. new text end

Sec. 7.

Subdivision 1.

Subd. 2.

Subd. 3.

Subd. 4.

Subd. 5.

new text begin EFFECTIVE DATE. new text end

Sec. 8.

Subdivision 1.

Subd. 2.

new text begin EFFECTIVE DATE. new text end

Sec. 9.

new text begin EFFECTIVE DATE. new text end

Sec. 10.

new text begin Subdivision 1. new text end

Required academic standards.

Reimbursement for examination fees.

new text begin Definitions. new text end

new text begin Growth. new text end

new text begin Value-added. new text end

new text begin Growth-based value-added. new text end

new text begin Adequate yearly progress. new text end

new text begin State growth norm. new text end

Statewide testing.

Statewide and local assessments; results.

Department of Education assistance.

Reporting.

Access to tests.

Educational accountability and public reporting.

Statewide testing.

Educational accountability.

Statistical adjustmentsnew text begin; student performance datanew text end.

deleted text beginAdequate yearly progress of schools and studentsdeleted text endnew text begin School and
student indicators of growth and achievementnew text end.

new text beginExpectations for federally mandated new text endstudent academic achievement.

Student deleted text beginprogress assessmentdeleted text endnew text begin growth; other state measuresnew text end.

Improving schools.

Improving graduation rates for students with emotional or behavioral
disorders.

School performance report cards.

Adequate yearly progress data.

new text begin Licensure applications. new text end

new text begin Licensure via portfolio. new text end

Wind energy conversion system.

Contract; duties.

To qualify.

Pupils in adjoining states.

Tuition payments.

Effective if reciprocal.

Appeal to the commissioner.

new text begin Agreements. new text end

new text begin Pupil accounting. new text end

new text begin Procedures. new text end

new text begin Exception. new text end

Leave to teach in a charter school.

State total adult basic education aid.

new text begin Third-party reimbursement. new text end

new text begin Adjustments for tuition reciprocity with adjoining states. new text end

Transition revenue.

new text begin Transition for tuition reciprocity revenue. new text end

Referendum revenue.

Permanent school fund.

County apportionment deduction.

Limitations.

new text begin Intermediate school districts. new text end

Definitions.

Notifications; payment; appropriation.

School district bound; interest rate on state paid amount.

Pledge of district's full faith and credit.

new text begin Aid reduction for repayment. new text end

Tax levy for repayment.

Election as to mandatory application.

Mandatory plan; technical assistance.

State bond rating.

Continuing disclosure agreements.

Payments to third parties.

Preadvanced placement, advanced placement, international
baccalaureate, and concurrent enrollment programs.

Report.

Special Education Task Force.

Plainview-Elgin-Millville fund balance replacement aid.

Department of Education.

Department.

Total Appropriation

Independent School District No. 239,
Rushford-Peterson

Flood Enrollment Impact Aid

Disaster Relief Facilities Grant

Pupil Transportation Aid

Disaster Relief Facilities Grants to
Other Districts

new text begin Capital account transfers. new text end

new text begin Reserved for operating capital account transfer; Balaton school
district. new text end

new text begin Reserved for operating capital account transfer; East Central school
district. new text end

new text begin District academic achievement plan; priorities. new text end

new text begin Plan. new text end

new text begin Department of Education. new text end

new text begin Additional general education revenue. new text end

Private data; when disclosure is permitted.

new text begin Data to improve instruction. new text end

new text begin Establishment; membership. new text end

new text begin Powers and duties; report. new text end

new text begin Expiration. new text end

Resident student.

Grant stipends.

Surplus appropriation.

new text begin Student eligibility. new text end

new text begin Eligible programs. new text end

new text begin Cost of attendance. new text end

new text begin Award amount. new text end

Establishment.

Definition; qualifying program.

Documentation of qualifying programs.

Student eligibility.

Administration.

Application.

Deadline.

Documentation of qualifying household income.

Scholarship awards.

Qualifying expenses.

Eligible institutions.

Availability of scholarship funds.

Disbursement of scholarships.

Evaluation report.

new text begin Administration. new text end

Prohibition.

Application.

Requirements for degree new text beginand nondegree program new text endapproval.

Name.

Conditional approval.

Required academic standards.

Reimbursement for examination fees.

new text begin Definitions. new text end

new text begin Growth. new text end

new text begin Value-added. new text end

new text begin Growth-based value-added. new text end

new text begin Adequate yearly progress. new text end

new text begin State growth norm. new text end

Statewide testing.

Statewide and local assessments; results.

Department of Education assistance.

Reporting.

Access to tests.

Educational accountability and public reporting.

Statewide testing.

Educational accountability.

Statistical adjustmentsnew text begin; student performance datanew text end.

deleted text beginAdequate yearly progress of schools and studentsdeleted text endnew text begin School and student indicators of growth and achievementnew text end.

new text beginExpectations for federally mandated new text endstudent academic achievement.

Student deleted text beginprogress assessmentdeleted text endnew text begin growth; other state measuresnew text end.

Improving schools.

Improving graduation rates for students with emotional or behavioral disorders.

School performance report cards.

Adequate yearly progress data.

deleted text beginAdequate yearly progress of schools and studentsdeleted text endnew text begin School and
student indicators of growth and achievementnew text end.

Improving graduation rates for students with emotional or behavioral
disorders.

Engrossments
Introduction		Posted on 03/07/2007
1st Engrossment		Posted on 03/31/2008
2nd Engrossment		Posted on 04/01/2008
3rd Engrossment		Posted on 04/02/2008
4th Engrossment		Posted on 04/04/2008
5th Engrossment		Posted on 05/20/2008

Conference Committee Reports
CCR-HF1812C		Posted on 05/18/2008

Minnesota Statutes 2007 Supplement, section 120B.021, subdivision 1,
is amended to read:

new text begin(a) new text endThe 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) new text beginphysical education;
new text end

new text begin (6) new text endhealth deleted text beginand physical education,deleted text end for which locally developed academic standards
apply; and

deleted text begin (6)deleted text endnew text begin (7)new text end 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 (b) To satisfy the one-half credit physical education requirement under section
120B.024, paragraph (a), clause (5), the state physical education standard under paragraph
(a) must be consistent with either the six physical education standards developed by the
department's quality teaching network or the six National Physical Education Standards
developed by the National Association for Sport and Physical Education. Minnesota
Statutes, chapter 14, and section 14.386, specifically, do not apply. To satisfy federal
reporting requirements for continued funding under Title VII of the Physical Education
for Progress Act, a school district must notify the department, if applicable, of its intent
to comply with the National Physical Education Standards. School districts and charter
schools also must use either the department's physical education standards or the national
physical education standards under this paragraph to comply with paragraph (a), clause
(5), in providing physical education instruction and programs to students in kindergarten
through grade 8.
new text end

new text begin (c) new text endThe commissioner must submit proposed standards in science and social studies
to the legislature by February 1, 2004.

new text begin (d) new text endFor 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.

new text begin (e) new text endA 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 (f) new text endThe commissioner must include the contributions of Minnesota American Indian
tribes and communities as they relate to the academic standards during the review and
revision of the required academic standards.

new text begin This section is effective the day following final enactment
except that paragraph (a), clause (5), applies to students entering the ninth grade in the
2010-2011 school year and later.
new text end

Minnesota Statutes 2007 Supplement, section 120B.024, is amended to read:

(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 beginand
deleted text end

(6) new text beginone-half credit of physical education; and
new text end

new text begin (7) new text enda minimum of deleted text beginsevendeleted text endnew text begin 6-1/2new 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).

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

new text begin This section is effective the day following final enactment
and applies to students entering ninth grade in the 2010-2011 school year and later.
new text end

Minnesota Statutes 2006, section 120B.131, subdivision 2, is amended to read:

The state may reimburse
college-level examination program (CLEP) fees for a Minnesota public or nonpublic high
school student who has successfully completed one or more college-level courses in high
school in the subject matter of each examination in the following subjects: composition
and literature, mathematics and science, social sciences and history, foreign languages, and
business and humanities. deleted text beginThe state may reimburse each student for up to six examination
fees.deleted text end The commissioner shall establish application procedures and a process and schedule
for fee reimbursements. The commissioner must give priority to reimburse the CLEP
examination fees of students of low-income families.

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

new text begin The definitions in this section apply to this chapter.
new text end

new text begin "Growth" compares the difference between a student's
achievement score at two distinct points in time.
new text end

new text begin "Value-added" is the amount of achievement a student
demonstrates above an established baseline.
new text end

new text begin "Growth-based value-added" is a
value-added system of assessments that measures the difference between an established
baseline of growth and a student's growth over time.
new text end

new text begin "Adequate yearly progress" compares the
average achievement of two different groups of students at two different points in time.
new text end

new text begin "State growth norm" is an established statewide
percentile or standard applicable to all students in a particular grade benchmarked to an
established school year. Beginning in the 2008-2009 school year, the state growth norm
is benchmarked to 2006-2007 school year data until the commissioner next changes the
vertically linked scale score. Each time the commissioner changes the vertically linked
scale score, a recognized Minnesota assessment group composed of assessment and
evaluation directors and staff and researchers, in collaboration with the Independent Office
of Educational Accountability under section 120B.31, subdivision 3, must recommend
a new state growth norm that the commissioner must consider when revising standards
under section 120B.023, subdivision 2. For each newly established state growth norm, the
commissioner also must establish criteria for identifying schools and school districts that
demonstrate accelerated growth in order to advance educators' professional development
and to replicate programs that succeed in meeting students' diverse learning needs.
new text end

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

Minnesota Statutes 2007 Supplement, section 120B.30, is amended to read:

(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 writingdeleted text begin, developed after the 2002-2003 school year,deleted text end 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 basic
skills tests in reading and mathematics are the equivalent of 75 percent correct for students
entering grade 9 deleted text beginin 1997 and thereafter, asdeleted text end based on the first uniform test deleted text beginadministration ofdeleted text endnew text begin
administered innew text end February 1998.

(b) For students enrolled in grade 8 in the 2005-2006 school year and later, only the
following options shall fulfill students' state graduation test requirements:

(1) for reading and mathematics:

(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;

(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;

(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;

(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

(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

(2) for writing:

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

(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;

(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

(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.

(c) The 3rd 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.

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

(e) 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 appropriate, technically sound accommodations, alternate
assessments, or exemptions consistent with applicable federal law, 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 determines that the general statewide test
is inappropriate for a student, or for a limited English proficiency student under section
124D.59, subdivision 2;

(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) state results 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.

(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 deleted text begin9deleted text end new text begin8 new text endspan, and a life sciences assessment in the grades deleted text begin10deleted text end new text begin9 new text endthrough 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.

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

(2) include, by no later than the 2008-2009 school year, anew text begin growth-basednew text end value-added
deleted text begin component that is in addition to a measure for student achievement growth over timedeleted text endnew text begin
indicator of student achievement under section 120B.35, subdivision 3, paragraph (b)new text end; 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 appropriate, technically sound accommodations or
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
deleted text begin progress in achieving thedeleted text endnew text begin proficiency in the context of the state's grade levelnew text end 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.

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

The commissioner shall report test data publicly and to
stakeholders, including the performance achievement levels developed from students'
unweighted 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.

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 responses to the test questions deleted text beginto be reviewed by the
parentdeleted text endnew text begin for their reviewnew text end.

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

Minnesota Statutes 2006, section 120B.31, as amended by Laws 2007, chapter
146, article 2, section 10, is amended to read:

Consistent
with the deleted text beginprocessdeleted text endnew text begin directionnew text end to adopt deleted text begina results-oriented graduation ruledeleted text endnew text begin statewide academic
standardsnew text end under section 120B.02, the department, in consultation with education and other
system stakeholders, must deleted text beginestablishdeleted text endnew text begin maintainnew text end a coordinated and comprehensive system of
educational accountability and public reporting that promotes deleted text beginhigherdeleted text endnew text begin greaternew text end academic
achievementnew text begin, preparation for higher academic education, preparation for the world of
work, citizenship as outlined under sections 120B.021, subdivision 1, clause (4), and
120B.024, paragraph (a), clause (4), and the artsnew text end.

Each school year, all school districts shall give a
uniform statewide test to students at specified grades to provide information on the status,
needs and performance of Minnesota students.

(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, and shall be funded through the Board of Regents
of the University of Minnesota. 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 deleted text beginresults-orienteddeleted text endnew text begin high schoolnew text end graduation
rule. The office shall determine and annually report to the legislature whether and how
effectively:

(1) the statewide system of educational accountability deleted text beginutilizesdeleted text endnew text begin usesnew text end 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;

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

(3) the commissioner uses deleted text beginindicators of student achievement growthdeleted text endnew text begin a growth-based
value-added indicator of student achievementnew text end over time deleted text beginand a value-added assessment
modeldeleted text end that estimates the effects of the school and school district on student achievement to
measure school performance, consistent with section deleted text begin120B.36, subdivision 1deleted text endnew text begin 120B.35,
subdivision 3, paragraph (b)new text end;

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

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

(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.

In deleted text begindevelopingdeleted text end
new text begin managingnew text end policies and assessment processes to hold schools and districts accountable
for high levels of academic standards under section 120B.021, the commissioner shall
aggregate student data over time to report student performancenew text begin and growthnew text end levels
measured at the new text beginschool, new text endschool district, deleted text beginregional, ordeleted text endnew text begin andnew text end statewide level. When collecting
and reporting thenew text begin performancenew text end data, the commissioner shall: (1) acknowledge the impact
of significant demographic factors such as residential instability, the number of single
parent families, parents' level of education, and parents' income level on school outcomes;
and (2) organize and report the data so that state and local policy makers can understand
the educational implications of changes in districts' demographic profiles over time. Any
report the commissioner disseminates containing summary data on student performance
must integrate student performance and the demographic factors that strongly correlate
with that performance.

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

Minnesota Statutes 2006, section 120B.35, as amended by Laws 2007, chapter
147, article 8, section 38, is amended to read:

The commissioner must deleted text begindevelop
and implementdeleted text endnew text begin maintainnew text end a system for measuring and reporting academic achievement
and individual student deleted text beginprogressdeleted text endnew text begin growthnew text end, consistent with the statewide educational
accountability and reporting system. Thenew text begin systemnew text end components deleted text beginof the systemdeleted text end must measure
the adequate yearly progress of schools and new text begin the growth of new text endindividual students: students'
current achievement in schools under subdivision 2; and individual students' educational
deleted text begin progressdeleted text endnew text begin growthnew text end over time under subdivision 3. The system also must include statewide
measures of student academic deleted text beginachievementdeleted text endnew text begin growthnew text end that identify schools with high levels
of deleted text beginachievementdeleted text endnew text begin growthnew text end, and also schools with low levels of deleted text beginachievementdeleted text endnew text begin growthnew text end that need
improvement. When determining a school's effect, the data must include both statewide
measures of student achievement anddeleted text begin, to the extent annual tests are administered,deleted text end
indicators of achievement growth that take into account a student's prior achievement.
Indicators of achievement and prior achievement must be based on highly reliable
statewide or districtwide assessments. Indicators that take into account a student's prior
achievement must not be used to disregard a school's low achievement or to exclude
a school from a program to improve low achievement levels. deleted text beginThe commissioner by
January 15, 2002, must submit a plan for integrating these components to the chairs of
the legislative committees having policy and budgetary responsibilities for elementary
and secondary education.
deleted text end

(a) Each school year, a school district must determine if the student achievement levels
at each school site meet deleted text beginstate and localdeleted text endnew text begin federally mandatednew text end expectations. If student
achievement levels at a school site do not meet deleted text beginstate and localdeleted text endnew text begin federally mandatednew text end
expectations and the site has not made adequate yearly progress for two consecutive
school years, beginning with the 2001-2002 school year, the district must work with the
school site to adopt a plan to raise student achievement levels to meet deleted text beginstate and localdeleted text endnew text begin
federally mandatednew text end expectations. The commissioner of education shall establish student
academic achievement levelsnew text begin to comply with this paragraphnew text end.

(b) School sites identified as not meeting new text beginfederally mandated new text endexpectations must
develop continuous improvement plans in order to meet deleted text beginstate and localdeleted text endnew text begin federally mandatednew text end
expectations for student academic achievement. The department, at a district's request,
must assist the district and the school site in developing a plan to improve student
achievement. The plan must include parental involvement components.

(1) deleted text beginprovide assistance todeleted text endnew text begin assistnew text end school sites and districts identified as not meeting
new text begin federally mandated new text endexpectations; and

(2) provide technical assistance to schools that integrate student deleted text beginprogressdeleted text end measures
deleted text begin under subdivision 3deleted text end in the school continuous improvement plan.

(d) The commissioner shall establish and maintain a continuous improvement Web
site designed to make data on every school and district available to parents, teachers,
administrators, community members, and the general public.

(a)
Thenew text begin state'snew text end educational assessment system deleted text begincomponentdeleted text end measuring individual students'
educational deleted text beginprogress must bedeleted text endnew text begin growth isnew text end baseddeleted text begin, to the extent annual tests are administered,deleted text end
on indicators of achievement growth that show an individual student's prior achievement.
Indicators of achievement and prior achievement deleted text beginmust bedeleted text endnew text begin arenew text end based on highly reliable
statewide or districtwide assessments.

(b) The commissioner must deleted text beginidentify effective models for measuring individual
student progress that enable a school district or school site to perform gains-based
analysis, including evaluating the effects of the teacher, school, and school district on
student achievement over time. At least one model must be a "value-added" assessment
model that reliably estimates those effects for classroom settings where a single teacher
teaches multiple subjects to the same group of students, for team teaching arrangements,
and for other teaching circumstances.deleted text endnew text begin use a growth-based value-added system. The
commissioner must apply the state growth norm to students in grades 4 through 8
beginning in the 2008-2009 school year, consistent with section 120B.299, subdivision
6, initially benchmarking the state growth norm to 2006-2007 school year data. The
model must allow the user to:
new text end

new text begin (1) report student growth at and above the state norm; and
new text end

new text begin (2) for all student categories with a cell size of at least 20, report and compare
aggregated and disaggregated state growth data using the nine student categories identified
under the federal 2001 No Child Left Behind Act and two student gender categories of
male and female, respectively. The model must measure the effects that teacher teams
within a grade, teacher teams across an entire grade, the school, and the school district
have on student growth. The model must not compile test results for teacher teams within
a grade or across a grade unless the test results encompass data on three or more teachers.
new text end

deleted text begin (c) If a district has an accountability plan that includes gains-based analysis or
"value-added" assessment, the commissioner shall, to the extent practicable, incorporate
those measures in determining whether the district or school site meets expectations. The
department must coordinate with the district in evaluating school sites and continuous
improvement plans, consistent with best practices. deleted text end new text begin If a district has an accountability
plan that includes other growth-based value-added analysis, the commissioner may, to
the extent practicable and consistent with this section, incorporate those measures in
determining whether the district or school site shows growth, including accelerated growth.
new text end

new text begin (d) When reporting student performance under section 120B.36, subdivision 1, the
commissioner annually, beginning July 1, 2011, must report two core measures indicating
the extent to which current high school graduates are being prepared for postsecondary
academic and career opportunities:
new text end

new text begin (1) a preparation measure indicating the number and percentage of high school
graduates in the most recent school year who completed course work important to
preparing them for postsecondary academic and career opportunities, consistent with the
core academic subjects required for admission to Minnesota's public four-year colleges
and universities as determined by the Office of Higher Education under chapter 136A; and
new text end

new text begin (2) a rigorous coursework measure indicating the number and percentage of high
school graduates in the most recent school year who successfully completed one or more
college-level advanced placement, international baccalaureate, postsecondary enrollment
options including concurrent enrollment, other rigorous courses of study under section
120B.021, subdivision 1a, or industry certification courses or programs.
new text end

new text begin When reporting the core measures under clauses (1) and (2), the commissioner must also
analyze and report separate categories of information using the nine student categories
identified under the federal 2001 No Child Left Behind Act and two student gender
categories of male and female, respectively.
new text end

new text begin (e) When reporting student performance under section 120B.36, subdivision 1, the
commissioner annually, beginning July 1, 2011, must include summary data showing
students' average self-reported sense of school safety, engagement in school, and the
quality of students' relationship with teachers, administrators, and other students. The
commissioner must gather these data consistently from students in grade 4 or 5, in one
grade level in grades 6 through 8, and in one grade level in high school, as determined by
the commissioner in consultation with recognized and qualified experts. All data received,
collected, or created that are used to generate the summary data under this paragraph are
nonpublic data under section 13.02, subdivision 9.
new text end

Consistent with the requirements of this section, the
commissioner of education must deleted text beginestablish a second achievement benchmark to identify
improving schools. The commissioner must recommend todeleted text endnew text begin annually report to the public
and new text end the legislature deleted text beginby February 15, 2002, indicators in addition to the achievement
benchmark for identifying improving schools, including an indicator requiring a school to
demonstrate ongoing successful use of best teaching practicesdeleted text endnew text begin best practices learned from
those schools that demonstrate accelerated growth compared to the state growth normnew text end.

(a) A district must develop strategies in conjunction with parents of students
with emotional or behavioral disorders and the county board responsible for implementing
sections 245.487 to 245.4889 to keep students with emotional or behavioral disorders in
school, when the district has a drop-out rate for students with an emotional or behavioral
disorder in grades 9 through 12 exceeding 25 percent.

(b) A district must develop a plan in conjunction with parents of students with
emotional or behavioral disorders and the local mental health authority to increase the
graduation rates of students with emotional or behavioral disorders. A district with a
drop-out rate for children with an emotional or behavioral disturbance in grades 9 through
12 that is in the top 25 percent of all districts shall submit a plan for review and oversight
to the commissioner.

new text begin Subdivision 3, paragraph (b), applies to students in the
2008-2009 school year and later. Subdivision 3, paragraph (d), applies to students in the
2010-2011 school year and later. Subdivision 3, paragraph (e), applies to high school
students in the 2009-2010 school year and later, and to students in any grades 4 through 8
in the 2010-2011 school year and later, consistent with the commissioner's grade level
determinations. Subdivision 4 applies in the 2011-2012 school year and later.
new text end

Minnesota Statutes 2006, section 120B.36, as amended by Laws 2007, chapter
146, article 2, section 11, is amended to read:

(a) The commissioner shall
deleted text begin use objective criteria based on levels of student performance todeleted text end report deleted text beginat leastdeleted text end student
academic performancenew text begin under section 120B.35, subdivision 2, the percentages of students
at and above the state growth norm under section 120B.35, subdivision 3, paragraph (b)new text end,
school safetynew text begin and student engagement under section 120B.35, subdivision 3, paragraph
(e), rigorous coursework under section 120B.35, subdivision 3, paragraph (d)new text end, two
separate student-to-teacher ratios that clearly indicate the definition of teacher consistent
with sections 122A.06 and 122A.15 for purposes of determining these ratios, deleted text beginanddeleted text end staff
characteristicsnew text begin excluding salariesnew text end, deleted text beginwith a value-added component added no later than
the 2008-2009 school yeardeleted text endnew text begin student enrollment demographics, district mobility, and
extracurricular activitiesnew text end. deleted text beginThe report must indicate a school's adequate yearly progress
status, and must not set any designations applicable to high- and low-performing schools
due solely to adequate yearly progress status.
deleted text end

(b) The commissioner shall develop, annually update, and post on the department
Web site school performance report cards.

(c) The commissioner must make available deleted text beginthe firstdeleted text end performance report cards by
deleted text begin November 2003, and duringdeleted text end the beginning of each school year deleted text beginthereafterdeleted text end.

(d) A school or district may appeal its adequate yearly progress status in writing to
the commissioner within 30 days of receiving the notice of its status. The commissioner's
decision to uphold or deny an appeal is final.

(e) School performance report deleted text begincardsdeleted text endnew text begin cardnew text end data 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.

All data the department receives,
collects, or creates deleted text beginfor purposes of determiningdeleted text endnew text begin to determinenew text end adequate yearly progress
deleted text begin designationsdeleted text endnew text begin statusnew text end under Public Law 107-110, section 1116,new text begin set state growth norms, and
determine student growthnew text end are nonpublic data under section 13.02, subdivision 9, until not
later than ten days after the appeal procedure described in subdivision 1, paragraph (d),
concludes. Districts must provide parents sufficiently detailed summary data to permit
parents to appeal under Public Law 107-110, section 1116(b)(2). The department shall
annually postnew text begin federally mandatednew text end adequate yearly progress datanew text begin and state student growth
datanew text end to its public Web site no later than September 1.

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

Minnesota Statutes 2006, section 120B.362, is amended to read:

deleted text begin (a)deleted text end The commissioner of education must implement a new text begingrowth-based new text endvalue-added
assessment program to assist school districts, public schools, and charter schools in
assessing and reporting individual students' growth in academic achievement under section
120B.30, subdivision 1a. The program must use assessments of individual students'
academic achievement to make longitudinal comparisons of each student's academic
growth over time. deleted text beginSchool districts, public schools, and charter schools may apply to the
commissioner to participate in the initial trial program using a form and in the manner the
commissioner prescribes. The commissioner must select program participants from urban,
suburban, and rural areas throughout the state.
deleted text end

deleted text begin (b) The commissioner may issue a request for proposals to contract with an
organization that provides a value-added assessment model that reliably estimates school
and school district effects on students' academic achievement over time. The model the
commissioner selects must accommodate diverse data and must use each student's test
data across grades. Data on individual teachers generated under the model are personnel
data under section 13.43.
deleted text end

deleted text begin (c) The contract under paragraph (b) must be consistent with the definition of "best
value" under section 16C.02, subdivision 4.
deleted text end

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

Minnesota Statutes 2006, section 122A.21, is amended to read:

Each application for the issuance, renewal,
or extension of a license to teachnew text begin, including applications for licensure via portfolio under
subdivision 2,new text end must be accompanied by a processing fee of $57. Each application for
issuing, renewing, or extending the license of a school administrator or supervisor must
be accompanied by a processing fee in the amount set by the Board of Teaching. The
processing fee for a teacher's license and for the licenses of supervisory personnel must
be paid to the executive secretary of the appropriate board. The executive secretary of
the board shall deposit the fees with the commissioner of finance. The fees as set by the
board are nonrefundable for applicants not qualifying for a license. However, a fee must
be refunded by the commissioner of finance in any case in which the applicant already
holds a valid unexpired license. The board may waive or reduce fees for applicants who
apply at the same time for more than one license.

new text begin (a) A candidate seeking licensure via portfolio
must submit a $75 fee to the Educator Licensing Division at the department to determine
the candidate's eligibility for licensure via portfolio. An eligible candidate may use
licensure via portfolio to obtain an initial licensure or to add a licensure field, consistent
with the applicable Board of Teaching licensure rules.
new text end

new text begin (b) A candidate for initial licensure must submit to the Educator Licensing Division
at the department one portfolio demonstrating pedagogical competence and one portfolio
demonstrating content competence.
new text end

new text begin (c) A candidate seeking to add a licensure field must submit to the Educator
Licensing Division at the department one portfolio demonstrating content competence.
new text end

new text begin (d) A candidate must pay to the executive secretary of the Board of Teaching a
$300 fee for the first portfolio submitted for review and a $200 fee for any portfolio
submitted subsequently. The fees must be paid to the executive secretary of the Board of
Teaching. The revenue generated from the fee must be deposited in an education licensure
portfolio account in the special revenue fund. The fees set by the Board of Teaching are
nonrefundable for applicants not qualifying for a license. The Board of Teaching may
waive or reduce fees for candidates based on financial need.
new text end

new text begin When available, a school district must post its current local school wellness policy
on its Web site.
new text end

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

Minnesota Statutes 2006, section 123B.02, subdivision 21, is amended to read:

The boardnew text begin, or more than one board
acting jointly under the authority granted by section 471.59,new text end may construct, acquire, own
in whole or in part, operate, and sell and retain and spend the payment received from
selling energy from a wind energy conversion system, as defined in section 216C.06,
subdivision 19. The board's share of the installed capacity of the wind energy conversion
systems authorized by this subdivision must not exceed 3.3 megawatts of nameplate
capacity. A board owning, operating, or selling energy from a wind energy conversion
system must integrate information about wind energy conversion systems in its educational
programming.new text begin The board, or more than one board acting jointly under the authority
granted by section 471.59, may be a limited partner in a partnership, a member of a limited
liability company, or a shareholder in a corporation, established for the sole purpose of
constructing, acquiring, owning in whole or in part, financing, or operating a wind energy
conversion system for the benefit of the district or districts in accordance with this section.new text end

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

Minnesota Statutes 2007 Supplement, section 123B.143, subdivision 1,
is amended to read:

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 beginby 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 MCA-IIs taken in the eighth grade, identifying the highest student passage rate the
district expects it will be able to attain on the MCA-IIs by grade 12, and the amount of
expenditures that the district requires to attain the targeted student passage rate; and
deleted text end

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

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

Minnesota Statutes 2006, section 123B.59, subdivision 1, is amended to read:

(a) An independent or special school district qualifies to
participate in the alternative facilities bonding and levy program if the district has:

(1) more than 66 students per grade;

(2) over 1,850,000 square feet of space and the average age of building space is 15
years or older or over 1,500,000 square feet and the average age of building space is
35 years or older;

(3) insufficient funds from projected health and safety revenue and capital facilities
revenue to meet the requirements for deferred maintenance, to make accessibility
improvements, or to make fire, safety, or health repairs; and

(4) a ten-year facility plan approved by the commissioner according to subdivision 2.

(b) An independent or special school district not eligible to participate in the
alternative facilities bonding and levy program under paragraph (a) qualifies for limited
participation in the program if the district has:

(1) one or more health and safety projects with an estimated cost of $500,000 or
more per site that would qualify for health and safety revenue except for the project size
limitation in section 123B.57, subdivision 1, paragraph (b); and

(2) insufficient funds from capital facilities revenue to fund those projects.

new text begin (c) Notwithstanding the square footage limitation in paragraph (a), clause (2),
a school district that qualified for eligibility under paragraph (a) as of July 1, 2007,
remains eligible for funding under this section as long as the district continues to meet
the requirements of paragraph (a), clauses (1), (3), and (4).
new text end

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

Minnesota Statutes 2006, section 123B.62, is amended to read:

(a) In addition to other bonding authority, with approval of the commissioner, a
district may issue general obligation bonds for certain capital projects under this section.
The bonds must be used only to make capital improvements including:

(1) under section 126C.10, subdivision 14, total operating capital revenue uses
specified in clauses (4), (6), (7), (8), (9), and (10);

(2) the cost of energy modifications;

(3) improving disability accessibility to school buildings; and

(4) bringing school buildings into compliance with life and safety codes and fire
codes.

(b) Before a district issues bonds under this subdivision, it must publish notice
of the intended projects, the amount of the bond issue, and the total amount of district
indebtedness.

(c) A bond issue tentatively authorized by the board under this subdivision becomes
finally authorized unless a petition signed by more than 15 percent of the registered voters
of the district is filed with the school board within 30 days of the board's adoption of a
resolution stating the board's intention to issue bonds. The percentage is to be determined
with reference to the number of registered voters in the district on the last day before the
petition is filed with the board. The petition must call for a referendum on the question of
whether to issue the bonds for the projects under this section. The approval of 50 percent
plus one of those voting on the question is required to pass a referendum authorized
by this section.

(d) The bonds must be paid off within deleted text begintendeleted text end new text begin15 new text endyears of issuance. The bonds must be
issued in compliance with chapter 475, except as otherwise provided in this section. A tax
levy must be made for the payment of principal and interest on the bonds in accordance
with section 475.61. The sum of the tax levies under this section and section 123B.61 for
each year must not exceed the limit specified in section 123B.61. The levy for each year
must be reduced as provided in section 123B.61. A district using an excess amount in the
debt redemption fund to retire the bonds shall report the amount used for this purpose to
the commissioner by July 15 of the following fiscal year. A district having an outstanding
capital loan under section 126C.69 or an outstanding debt service loan under section
126C.68 must not use an excess amount in the debt redemption fund to retire the bonds.

(e) Notwithstanding paragraph (d), bonds issued by a district within the first
five years following voter approval of a combination according to section 123A.37,
subdivision 2, must be paid off within 20 years of issuance. All the other provisions and
limitation of paragraph (d) apply.

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

Minnesota Statutes 2006, section 124D.04, subdivision 3, is amended to read:

new text beginExcept as provided under an agreement with
an adjoining state under section 124D.041, new text enda non-Minnesota pupil who resides in an
adjoining state in a district that borders Minnesota may enroll in a Minnesota district if
either the board of the district in which the pupil resides or state in which the pupil resides
pays tuition to the district in which the pupil is enrolled.

Minnesota Statutes 2006, section 124D.04, subdivision 6, is amended to read:

new text begin(a) new text endIn each odd-numbered year, before March 1, the
commissioner must agree to rates of tuition for Minnesota elementary and secondary
pupils attending in other states for the next two fiscal years when the other state agrees to
negotiate tuition rates. The commissioner must negotiate equal, reciprocal rates with the
designated authority in each state for pupils who reside in an adjoining state and enroll in
a Minnesota district. The rates must be at least equal to the tuition specified in section
124D.05, subdivision 1. If the other state does not agree to negotiate a general tuition rate,
a Minnesota school district may negotiate a tuition rate with the school district in the other
state that sends a pupil to or receives a pupil from the Minnesota school district. The
tuition rate for a pupil with a disability must be equal to the actual cost of instruction and
services provided. The resident district of a Minnesota pupil attending in another state
under this section must pay the amount of tuition agreed upon in this section to the district
of attendance, prorated on the basis of the proportion of the school year attended.

new text begin (b) Notwithstanding paragraph (a) and subdivision 9, if an agreement is reached
between the state of Minnesota and an adjoining state pursuant to section 124D.041,
the provisions of section 124D.041 and the agreement shall apply to all enrollment
transfers between Minnesota and the adjoining state, and provisions of paragraph (a)
and subdivision 9 shall not apply.
new text end

Minnesota Statutes 2006, section 124D.04, subdivision 8, is amended to read:

This section is effective with respect to deleted text beginSouth
Dakota upon enactment of provisions by South Dakota that the commissioner determines
are essentially similar to the provisions for Minnesota pupils in this section. This section
is effective with respect todeleted text end any deleted text beginotherdeleted text end bordering state upon enactment of provisions by the
bordering state that the commissioner determines are essentially similar to the provisions
for Minnesota pupils in this section.

Minnesota Statutes 2006, section 124D.04, subdivision 9, is amended to read:

If a Minnesota school district cannot agree
with an adjoining state on a tuition rate for a Minnesota student attending school in that
state and that state has met the requirements in subdivision 8, then the student's parent or
guardian may request that the commissioner deleted text beginagree ondeleted text endnew text begin setnew text end a tuition rate for the student. The
Minnesota district must pay the amount of tuition the commissioner deleted text beginagrees upondeleted text endnew text begin setsnew text end.

new text begin (a) The commissioner may enter into an agreement
with the designated authority from an adjoining state to establish an enrollment options
program between Minnesota and the adjoining state. Any agreement entered into pursuant
to this section must specify the following:
new text end

new text begin (1) for students who are not residents of Minnesota, the enrollment options program
applies only to a student whose resident school district borders Minnesota;
new text end

new text begin (2) the commissioner must negotiate equal, reciprocal rates with the designated
authority from the adjoining state;
new text end

new text begin (3) if the adjoining state sends more students to Minnesota than Minnesota sends to
the adjoining state, the adjoining state must pay the state of Minnesota the rate agreed
upon under clause (2) for the excess number of students sent to Minnesota;
new text end

new text begin (4) if Minnesota sends more students to the adjoining state than the adjoining state
sends to Minnesota, the state of Minnesota will pay the adjoining state the rate agreed
upon under clause (2) for the excess number of students sent to the adjoining state;
new text end

new text begin (5) the application procedures for the enrollment options program between
Minnesota and the adjoining state;
new text end

new text begin (6) the reasons for which an application for the enrollment options program between
Minnesota and the adjoining may be denied; and
new text end

new text begin (7) that a Minnesota school district is not responsible for transportation for any
resident student attending school in an adjoining state under the provisions of this section.
A Minnesota school district may, at its discretion, provide transportation services for
such a student.
new text end

new text begin (b) Any agreement entered into pursuant to this section may specify additional terms
relating to any student in need of special education and related services pursuant to chapter
125A. Any additional terms must apply equally to both states.
new text end

new text begin (a) Any student from an adjoining state enrolled in
Minnesota pursuant to this section is included in the receiving school district's average
daily membership and pupil units according to section 126C.05 as if the student were
a resident of another Minnesota school district attending the receiving school district
under section 124D.03.
new text end

new text begin (b) Any Minnesota resident student enrolled in an adjoining state pursuant to this
section is included in the resident school district's average daily membership and pupil
units according to section 126C.05 as if the student were a resident of the district attending
another Minnesota school district under section 124D.03.
new text end

new text begin (a) The Department of Education must establish procedures
relating to the application process, the collection or payment of funds under the provisions
of any agreement established pursuant to this section, and the collection of data necessary
to implement any agreement established pursuant to this section.
new text end

new text begin (b) Notwithstanding sections 124D.04 and 124D.05, if an agreement is established
between Minnesota and an adjoining state pursuant to this section, the provisions of this
section and the agreement shall apply to all enrollment transfers between Minnesota and
the adjoining state, and provisions of sections 124D.04 and 124D.05 to the contrary,
including provisions relating to tuition payments, shall not apply.
new text end

new text begin (c) Notwithstanding paragraph (a), any payments to adjoining states under this
section shall be made according to section 127A.45, subdivision 16.
new text end

new text begin (d) Notwithstanding paragraph (b), sections 124D.04, subdivision 6, paragraph (b),
and 124D.05, subdivision 2a, the provisions of this section and the agreement shall not
apply to: (i) enrollment transfers between Minnesota and a school district in an adjoining
state enrolling fewer than 150 pupils that is exempted from participation in the program
under the laws of the adjoining state; or (ii) enrollment transfers between Minnesota and a
school district in an adjoining state under a board agreement initiated in fiscal year 2009 to
serve students in grade levels discontinued by the resident district.
new text end

Minnesota Statutes 2006, section 124D.05, is amended by adding a
subdivision to read:

new text begin Notwithstanding subdivisions 1 and 2, if an agreement
is reached between the state of Minnesota and an adjoining state pursuant to section
124D.041, the provisions of section 124D.041 and the agreement shall apply to all
enrollment transfers between Minnesota and the adjoining state, and provisions of
subdivisions 1 and 2 to the contrary, including provisions relating to tuition payments,
shall not apply.
new text end

Minnesota Statutes 2006, section 124D.10, subdivision 20, is amended to read:

If a teacher employed by a district
makes a written request for an extended leave of absence to teach at a charter school,
the district must grant the leave. The district must grant a leave not to exceed a total of
five years. Any request to extend the leave shall be granted only at the discretion of the
school board. The district may require that the request for a leave or extension of leave
be made deleted text beginup to 90 days before the teacher would otherwise have to report for dutydeleted text endnew text begin before
February 1 in the school year preceding the school year in which the teacher wishes to
return, or before February 1 of the calendar year in which the teacher's leave is scheduled
to terminatenew text end. Except as otherwise provided in this subdivision and except for section
122A.46, subdivision 7, the leave is governed by section 122A.46, including, but not
limited to, reinstatement, notice of intention to return, seniority, salary, and insurance.

During a leave, the teacher may continue to aggregate benefits and credits in the
Teachers' Retirement Association account by paying both the employer and employee
contributions based upon the annual salary of the teacher for the last full pay period before
the leave began. The retirement association may impose reasonable requirements to
efficiently administer this subdivision.

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

Minnesota Statutes 2007 Supplement, section 124D.531, subdivision 1,
is amended to read:

(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. 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. 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) deleted text beginthe 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 yeardeleted text endnew text begin the average
growth in state total contact hours over the prior ten program yearsnew text end.

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.

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

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

Minnesota Statutes 2006, section 125A.65, is amended by adding a
subdivision to read:

new text begin The Minnesota State Academies must seek
reimbursement under section 125A.21 from third parties for the cost of services provided
by the Minnesota State Academies whenever the services provided are otherwise covered
by a child's public or private health plan.
new text end

new text begin This section is effective the day following final enactment
for revenue in fiscal years 2008 and later.
new text end

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

new text begin (a) If an
agreement is reached between the state of Minnesota and an adjoining state pursuant to
section 124D.041 that requires a special education tuition payment from the state of
Minnesota to the adjoining state, the tuition payment shall be made from the special
education aid appropriation for that year, and the state total special education aid under
subdivision 4 shall be reduced by the amount of the payment.
new text end

new text begin (b) If an agreement is reached between the state of Minnesota and an adjoining state
pursuant to section 124D.041 that requires a special education tuition payment from
an adjoining state to the state of Minnesota, the special education aid appropriation for
that year and the state total special education aid under subdivision 4 shall be increased
by the amount of the payment.
new text end

new text begin (c) If an agreement is reached between the state of Minnesota and an adjoining state
pursuant to section 124D.041 that requires special education tuition payments to be made
between the two states and not between districts in the two states, the special education aid
for a Minnesota school district serving a student with a disability from the adjoining state
shall be calculated according to section 127A.47, subdivision 7, except that no reduction
shall be made in the special education aid paid to the resident district.
new text end

Minnesota Statutes 2006, section 126C.10, subdivision 31, is amended to read:

(a) A district's transition allowance equals the
greater of zero or the product of the ratio of the number of adjusted marginal cost pupil
units the district would have counted for fiscal year 2004 under Minnesota Statutes 2002
to the district's adjusted marginal cost pupil units for fiscal year 2004, times the difference
between: (1) the lesser of the district's general education revenue per adjusted marginal
cost pupil unit for fiscal year 2003 or the amount of general education revenue the district
would have received per adjusted marginal cost pupil unit for fiscal year 2004 according
to Minnesota Statutes 2002, and (2) the district's general education revenue for fiscal year
2004 excluding transition revenue divided by the number of adjusted marginal cost pupil
units the district would have counted for fiscal year 2004 under Minnesota Statutes 2002.

(b) A district's transition revenue for fiscal deleted text beginyeardeleted text endnew text begin yearsnew text end 2006 deleted text beginand laterdeleted text endnew text begin through 2009new text end
equals the sum of the product of the district's transition allowance times the district's
adjusted marginal cost pupil units plus the district's transition for prekindergarten revenue
under subdivision 31a.

new text begin (c) A district's transition revenue for fiscal year 2010 and later equals the sum of
the product of the district's transition allowance times the district's adjusted marginal cost
pupil units plus the district's transition for prekindergarten revenue under subdivision 31a
plus the district's transition for tuition reciprocity revenue under subdivision 31c.
new text end

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

new text begin For the first year that a
tuition reciprocity agreement with an adjoining state is in effect under section 124D.041
and later, a school district's transition for tuition reciprocity revenue equals the greater of
zero or the difference between the sum of the general education revenue and net tuition
revenue the district would have received for pupils enrolled under section 124D.041 for
the first year the agreement is in effect if the agreement had not been in effect, and the
sum of the district's general education revenue and net tuition revenue for the first year
the agreement is in effect.
new text end

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

(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 new text beginat the same
amount per pupil as in the previous yearnew text end:

"BY VOTING "YES" ON THIS BALLOT QUESTION, YOU deleted text beginMAY BE VOTING
FOR A PROPERTY TAX INCREASEdeleted text endnew text begin ARE RENEWING AN EXISTING
PROPERTY TAX REFERENDUM. YOU ARE NOT CHANGING YOUR
OPERATING REFERENDUM AMOUNT PER PUPIL FROM ITS LEVEL IN
THE PREVIOUS YEARnew 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 deleted text beginmaydeleted text end
deleted text begin result in deleted text enddeleted text beginan increasedeleted text enddeleted text begin in your property taxes."deleted text end new text beginrenews an existing operating referendum at
the same amount per pupil as in the previous year."new text end

(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 This section is effective for elections conducted on or after
July 1, 2008.
new text end

Minnesota Statutes 2006, section 126C.21, subdivision 1, is amended to read:

deleted text beginThedeleted text endnew text begin Annew text end amount of money new text beginequal to $36
times the district's pupils in average daily membership new text endreceived by a district as income
from the permanent school fund for any year must be deducted from the general education
aid earned by the district for the same year or from aid earned from other state sources.

new text begin This section is effective for revenue for fiscal year 2010.
new text end

Minnesota Statutes 2007 Supplement, section 126C.21, subdivision 3, is
amended to read:

Each year the amount of money
apportioned to a district for that year pursuant to deleted text beginsectionsdeleted text endnew text begin section new text end127A.34, subdivision 2,
deleted text begin and 272.029, subdivision 6,deleted 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 This section is effective for revenue for fiscal year 2009.
new text end

Minnesota Statutes 2007 Supplement, section 126C.44, is amended to read:

(a) 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 $30 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; (5)
to pay the costs for other crime prevention, drug abuse, student and staff safety, voluntary
opt-in suicide prevention tools, and violence prevention measures taken by the school
district; 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. 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.

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

(c) deleted text beginIfdeleted text end A school district deleted text beginspendsdeleted text end new text beginmust set aside at least $3 per adjusted marginal cost
pupil unit of the new text endsafe schools levy proceeds new text beginfor the purposes authorized new text endunder paragraph
(a), clause (6)deleted text begin,deleted text endnew text begin.new text end The district must annually certify that its total spending on services
provided by the employees listed in paragraph (a), clause (6), is not less than the sum of
its expenditures for these purposes, excluding amounts spent under this section, in the
previous year plus the amount spent under this section.

new text begin This section is effective for revenue for fiscal year 2010.
new text end

Minnesota Statutes 2006, section 126C.51, is amended to read:

Notwithstanding the provisions of section 471.69 or 471.75, or of any other
provision of law which by per capita limitation, local tax rate limitation, or otherwise,
limits the power of a district to incur any debt or to issue any warrant or order, a new text beginschool
new text enddistrict new text beginor intermediate school district new text endhas the powers in sections 126C.50 to 126C.56
specifically conferred upon it and all powers incident and necessary to carrying out the
purposes of sections 126C.50 to 126C.56.

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

Minnesota Statutes 2006, section 126C.52, subdivision 2, is amended to read:

The board new text beginof any school district new text endmay also borrow money
in the manner and subject to the limitations set forth in sections 126C.50 to 126C.56 in
anticipation of receipt of state aids for schools as defined in Minnesota Statutes and of
federal school aids to be distributed by or through the department. The aggregate of such
borrowings under this subdivision shall never exceed 75 percent of such aids which are
receivable by said school district in the deleted text beginschooldeleted text end new text beginfiscal new text endyear deleted text begin(from July 1 to June 30)deleted text end in which
the money is borrowed, as estimated and certified by the commissioner.

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

Minnesota Statutes 2006, section 126C.52, is amended by adding a
subdivision to read:

new text begin (a) The board of an intermediate school
district may borrow money in the manner and subject to the limitations set forth in
sections 126C.50 to 126C.56 in anticipation of the receipt of:
new text end

new text begin (1) state aids for schools as defined in Minnesota Statutes;
new text end

new text begin (2) federal school aids to be distributed by or through the department; and
new text end

new text begin (3) membership fees and tuition payments from its member school districts.
new text end

new text begin The aggregate of such borrowings under this subdivision shall never exceed 75
percent of such aids, fees, and tuition payments which are receivable by the intermediate
school district in the fiscal year in which the money is borrowed, as estimated and certified
by the commissioner.
new text end

new text begin (b) The board of an intermediate school district may, upon receipt of a written
resolution by each of its member school districts, pledge the member district's full faith
and credit and unlimited taxing powers to repay its pro rata share of any certificates issued
or the amount paid by the state under section 126C.55, subdivision 2, plus interest, if the
revenues specified in paragraph (a) and any other revenues of the intermediate school
district are insufficient to do so.
new text end

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

Minnesota Statutes 2006, section 126C.53, is amended to read:

The board new text beginof a school district or intermediate school district new text endmay authorize and
effect such borrowing, and may issue such certificates of indebtedness upon passage of
a resolution specifying the amount and purposes for which it deems such borrowing is
necessary. The resolution must be adopted by a vote of at least two-thirds of its members.
The board must fix the amount, date, maturity, form, denomination, and other details of
the certificates of indebtedness, not inconsistent with this chapter. The board must fix the
date and place for receipt of bids for the purchase of the certificates when bids are required
and direct the clerk to give notice of the date and place for bidding.

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

Minnesota Statutes 2006, section 126C.55, is amended to read:

For the purposes of this section, the term "debt
obligation" means:

(1) a deleted text begintax or aid anticipationdeleted text end certificate of indebtednessnew text begin issued under section 126C.52new text end;

(2) a certificate of participation issued under section 126C.40, subdivision 6; or

(3) a general obligation bond.

(a) If a new text beginschool new text enddistrict new text beginor
intermediate school district new text endbelieves that it may be unable to make a principal or interest
payment on any outstanding debt obligation on the date that payment is due, it must
notify the commissioner as soon as possible, but not less than 15 working days before the
date that principal or interest payment is due. The notice must include the name of thenew text begin
schoolnew text end districtnew text begin or intermediate school districtnew text end, an identification of the debt obligation issue
in question, the date the payment is due, the amount of principal and interest due on the
payment date, the amount of principal or interest that thenew text begin schoolnew text end districtnew text begin or intermediate
school districtnew text end will be unable to repay on that date, the paying agent for the debt obligation,
the wire transfer instructions to transfer funds to that paying agent, and an indication as to
whether a payment is being requested by thenew text begin schoolnew text end districtnew text begin or intermediate school districtnew text end
under this section. If a paying agent becomes aware of a potential default, it shall inform
the commissioner of that fact. After receipt of a notice which requests a payment under
this section, after consultation with thenew text begin schoolnew text end districtnew text begin or intermediate school districtnew text end and
the paying agent, and after verification of the accuracy of the information provided, the
commissioner shall notify the commissioner of finance of the potential default. The notice
must include a final figure as to the amount due that thenew text begin schoolnew text end districtnew text begin or intermediate
school districtnew text end will be unable to repay on the date due.

(b) Except as provided in subdivision 9, upon receipt of this notice from the
commissioner, the commissioner of finance shall issue a warrant and authorize the
commissioner of education to pay to the paying agent for the debt obligation the specified
amount on or before the date due. The amounts needed for the purposes of this subdivision
are annually appropriated to the department from the state general fund.

(c) The Departments of Education and Finance must jointly develop detailed
procedures for new text beginschool new text enddistricts new text beginand intermediate school districts new text endto notify the state that
they have obligated themselves to be bound by the provisions of this section, procedures
fornew text begin schoolnew text end districtsnew text begin or intermediate school districtsnew text end and paying agents to notify the state
of potential defaults and to request state payment under this section, and procedures
for the state to expedite payments to prevent defaults. The procedures are not subject
to chapter 14.

If, at the
request of a new text beginschool new text enddistrictnew text begin or intermediate school districtnew text end, the state has paid part or all of
the principal or interest due on a district's debt obligation on a specific date, thenew text begin schoolnew text end
district new text beginor the intermediate school district new text endis bound by all provisions of this section and the
amount paid shall bear taxable interest from the date paid until the date of repayment at
the invested cash rate as it is certified by the commissioner of finance. Interest shall only
accrue on the amounts paid and outstanding less the reduction in aid under subdivision 4
and other payments received from thenew text begin schoolnew text end districtnew text begin or intermediate school districtnew text end.

If, at the request of a new text beginschool
new text enddistrictnew text begin or intermediate school districtnew text end, the state has paid part or all of the principal or
interest due on a district's debt obligation on a specific date, the pledge of the full faith
and credit and unlimited taxing powers of thenew text begin schoolnew text end district new text beginor the intermediate school
district new text endto repay the principal and interest due on those debt obligations shall also, without
an election or the requirement of a further authorization, become a pledge of the full faith
and credit and unlimited taxing powers of thenew text begin schoolnew text end district new text beginor the intermediate school
district new text endto repay to the state the amount paid, with interest. Amounts paid by the state must
be repaid in the order in which the state payments were made.

new text begin (a) Except as provided in this subdivision,
the state must reduce the state aid payable to the school district or intermediate school
district under this chapter and chapters 122A, 123A, 123B, 124D, 125A, 126C, and 273
by the amount paid by the state under this section on behalf of the district, plus the interest
due on it, and the amount reduced must revert from the appropriate account to the state
general fund. Payments from the school district endowment fund or any federal aid
payments shall not be reduced.
new text end

new text begin (b) For an intermediate school district, the state aid payable to the intermediate
school district must first be reduced, before any reduction is made to the state aids payable
to the member districts. If the state aid payable to the intermediate school district is
not sufficient to repay the state, state aid payable to member districts may be reduced
proportionately based on the ratio of each member district's adjusted net tax capacity to
the total adjusted net tax capacity of all member districts.
new text end

new text begin (c) If, after review of the financial situation of the school district or intermediate
school district, the commissioner advises the commissioner of finance that a total reduction
of aids would cause an undue hardship on or an undue disruption of the educational
program of the district, the commissioner, with the approval of the commissioner of
finance, may establish a different schedule for reduction of aids to repay the state. The
amount of aids to be reduced is decreased by any amounts repaid to the state by the district
from other revenue sources.
new text end

(a) With the approval of the commissioner, a
district may levy in the year the state makes a payment under this section an amount up to
the amount necessary to provide funds for the repayment of the amount paid by the state
plus interest through the date of estimated repayment by the district. The proceeds of this
levy may be used only for this purpose unless they are in excess of the amount actually
due, in which case the excess shall be used to repay other state payments made under this
section or shall be deposited in the debt redemption fund of the school district. This levy
shall be an increase in the levy limits of the district for purposes of section 275.065,
subdivision 6. The amount of aids to be reduced to repay the state shall be decreased by
the amount levied. This levy by the district is not eligible for debt service equalization
under section 123B.53.

(b) If the state is not repaid in full for a payment made under this section by
November 30 of the calendar year following the year in which the state makes the
payment, the commissioner shall require the district to certify a property tax levy in an
amount up to the amount necessary to provide funds for repayment of the amount paid by
the state plus interest through the date of estimated repayment by the school district. To
prevent undue hardship, the commissioner may allow the district to certify the levy over a
five-year period. The proceeds of the levy may be used only for this purpose unless they
are in excess of the amount actually due, in which case the excess shall be used to repay
other state payments made under this section or shall be deposited in the debt redemption
fund of the district. This levy shall be an increase in the levy limits of the school district
for purposes of section 275.065, subdivision 6. If the commissioner orders the district
to levy, the amount of aids reduced to repay the state shall be decreased by the amount
levied. This levy by the district is not eligible for debt service equalization under section
123B.53 or any successor provision. A levy under this subdivision must be explained as a
specific increase at the meeting required under section 275.065, subdivision 6.

new text begin (c) For an intermediate school district, a levy made by a member school district
under paragraph (a) or (b) to repay its pro rata share must be spread by the commissioner
as a tax rate based on the total adjusted net tax capacity of the member school districts. The
proceeds of the levy must be remitted by the member school district to the intermediate
school district and must be used by the intermediate school district only to repay the state
amounts owed. Any amount in excess of the amount owed to the state must be repaid
to the member school districts and the commissioner shall adjust each member school
district's property tax levy in the next year.
new text end

A new text beginschool new text enddistrict new text beginor intermediate
school district new text endmay covenant and obligate itself, prior to the issuance of an issue of debt
obligations, to notify the commissioner of a potential default and to use the provisions of
this section to guarantee payment of the principal and interest on those debt obligations
when due. If thenew text begin schoolnew text end districtnew text begin or intermediate school districtnew text end obligates itself to be bound
by this section, it must covenant in the resolution that authorizes the issuance of the debt
obligations to deposit with the paying agent three business days prior to the date on which
a payment is due an amount sufficient to make that payment or to notify the commissioner
under subdivision 1 that it will be unable to make all or a portion of that payment. Anew text begin schoolnew text end
districtnew text begin or intermediate school districtnew text end that has obligated itself must include a provision in
its agreement with the paying agent for that issue that requires the paying agent to inform
the commissioner if it becomes aware of a potential default in the payment of principal or
interest on that issue or if, on the day two business days prior to the date a payment is due
on that issue, there are insufficient funds to make the payment on deposit with the paying
agent. Funds invested in a refunding escrow account established under section 475.67 that
are to become available to the paying agent on a principal or interest payment date are
deemed to be on deposit with the paying agent three business days before the payment
date. If anew text begin schoolnew text end districtnew text begin or intermediate school districtnew text end either covenants to be bound by
this section or accepts state payments under this section to prevent a default of a particular
issue of debt obligations, the provisions of this section shall be binding as to that issue
as long as any debt obligation of that issue remain outstanding. If the provisions of this
section are or become binding for more than one issue of debt obligations and anew text begin schoolnew text end
districtnew text begin or intermediate school districtnew text end is unable to make payments on one or more of those
issues, the district must continue to make payments on the remaining issues.

If the state makes payments
on behalf of a new text beginschool new text enddistrict new text beginor intermediate school district new text endunder this section or the
district defaults in the payment of principal or interest on an outstanding debt obligation, it
must submit a plan to the commissioner for approval specifying the measures it intends
to implement to resolve the issues which led to its inability to make the payment and
to prevent further defaults. The department must provide technical assistance to thenew text begin
schoolnew text end districtnew text begin or intermediate school districtnew text end in preparing its plan. If the commissioner
determines that a district's plan is not adequate, the commissioner shall notify thenew text begin schoolnew text end
districtnew text begin or intermediate school districtnew text end that the plan has been disapproved, the reasons for
the disapproval, and that the state shall not make future payments under this section for
debt obligations issued after the date specified in that notice until its plan is approved.
The commissioner may also notify thenew text begin schoolnew text end districtnew text begin or intermediate school districtnew text end that
until its plan is approved, other aids due the district will be withheld after a date specified
in the notice.

If the commissioner of finance determines that the
credit rating of the state would be adversely affected thereby, the commissioner of finance
shall not issue warrants under subdivision 2 for the payment of principal or interest on any
debt obligations for which a district did not, prior to their issuance, obligate itself to be
bound by the provisions of this section.

The commissioner of finance
may enter into written agreements or contracts relating to the continuing disclosure of
information needed to facilitate the ability of school districtsnew text begin or intermediate school
districtsnew text end to issue debt obligations according to federal securities laws, rules, and
regulations, including securities and exchange commission rules and regulations, section
240.15c2-12. Such agreements or contracts may be in any form the commissioner of
finance deems reasonable and in the state's best interests.

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

new text begin A school that receives school endowment fund revenue under section 127A.33
in excess of $36 per pupil in average daily membership may use that revenue only for
the following purposes:
new text end

new text begin (1) to purchase or lease computers and related materials, copying machines,
telecommunications equipment, and other noninstructional equipment;
new text end

new text begin (2) to purchase or lease assistive technology or equipment for instructional programs;
new text end

new text begin (3) to purchase new and replacement library media resources or technology;
new text end

new text begin (4) to pay for ongoing or recurring telecommunications/Internet access costs
associated with Internet access, data lines, and video links; and
new text end

new text begin (5) to pay for service provider installation fees for installation of new
telecommunications lines or increased bandwidth.
new text end

new text begin This section is effective for revenue for fiscal year 2010.
new text end

Minnesota Statutes 2006, section 127A.45, subdivision 16, is amended to read:

Notwithstanding subdivision 3, the current
year aid payment percentage of the amounts under section 123A.26, subdivision 3new text begin and
section 124D.041new text end, shall be paid in equal installments on August 30, December 30, and
March 30, with a final adjustment payment on October 30 of the next fiscal year of the
remaining amount.

Laws 2007, chapter 146, article 2, section 46, subdivision 13, is amended to
read:

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

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

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

The base appropriation for fiscal year 2010 and later is $2,000,000.

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

Laws 2007, chapter 146, article 3, section 23, subdivision 2, is amended to
read:

new text begin(a)new text end The task force must submit to the education policy and finance
committees of the legislature by February 15, deleted text begin2008deleted text endnew text begin 2009new text end, a report that identifies and
clearly and concisely explains each provision in state law or rule that exceeds deleted text beginor expands
upondeleted text end 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 deleted text beginprovisionsdeleted text endnew text begin statutes and rulesnew text end that exceed deleted text beginor expand upondeleted text end a minimum federal
requirement may be amended to conform with minimum federal requirementsnew text begin or made
more effective as determined by a majority of the task force membersnew text end. new text beginThe task force must
recommend rules governing the use of aversive and deprivation procedures by school
district employees or persons under contract with a school district.new text end The task force expires
when it submits its report to the legislature.

new text begin (b) Consistent with subdivision 1, the Department of Education member of the
task force representing regulators shall be replaced with a parent advocate selected by a
statewide organization that advocates on behalf of families with children with disabilities.
new text end

new text begin (c) The Department of Education must provide technical assistance at the request of
the task force.
new text end

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

Laws 2007, chapter 146, article 3, section 24, subdivision 9, is amended to
read:

For the task force to compare federal
and state special education requirements:

20,000 40,000

.....

2008

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

This is a onetime appropriation.

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

Laws 2007, chapter 146, article 5, section 13, subdivision 5, is amended to
read:

For fund balance replacement aid for Independent School District No. 2899,
Plainview-Elgin-Millville:

17,000 24,000

.....

2008

This is a onetime appropriation.

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

Laws 2007, chapter 146, article 7, section 4, is amended to read:

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.

(a) For the Department of Education:

	$	22,169,000	.....	2008
	$	deleted text begin 22,653,000 deleted text end new text begin 21,791,000 new text end	.....	2009

Any balance in the first year does not cancel but is available in the second year.

(b) $7,000 in fiscal year 2008 is for GRAD test rulemaking.

(d) $40,000 each year is for an early hearing loss intervention coordinator under
Minnesota Statutes, section 125A.63, subdivision 5. If the department expends federal
funds to employ a hearing loss coordinator under Minnesota Statutes, section 125.63,
subdivision 5, then the appropriation under this paragraph is reallocated for purposes of
employing a world languages coordinator.

(e) $260,000 each year is for the Minnesota Children's Museum.

(f) $41,000 each year is for the Minnesota Academy of Science.

(g) $619,000 in fiscal year 2008 and $632,000 in fiscal year 2009 are for the Board
of Teaching.

(h) $163,000 in fiscal year 2008 and $171,000 in fiscal year 2009 are for the Board
of School Administrators.

(i) $50,000 each year is for the Duluth Children's Museum.

(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.

(k) None of the amounts appropriated under this subdivision may be used for
Minnesota's Washington, D.C., office.

new text begin (1) $30,000 in fiscal year 2009 is for determining how the educational achievement
of low-income students and students of color is impacted by education issues related
to rigorous preparation and coursework, educators' professional development, English
language learners, special education, GRAD tests, and the use of valid and reliable data on
student preparation for postsecondary academic and career opportunities under sections 57
and 58. This amount is not added to the base appropriation for fiscal year 2010 and later.
new text end

Laws 2007, First Special Session chapter 2, article 1, section 11, subdivision
1, is amended to read:

deleted text begin 584,000 deleted text end new text begin 268,000
new text end

The appropriations in this section are from
the general fund. The amounts that may be
spent for each purpose are specified in the
following subdivisions.

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

Laws 2007, First Special Session chapter 2, article 1, section 11, subdivision
2, is amended to read:

(a)

89,000

The commissioner of education shall pay to
the school district flood enrollment impact
aid equal to $5,394 times the number of
pupils lost as a result of the floods of August
2007. The district must provide to the
commissioner of education documentation
of the number of pupils in average daily
membership lost as a result of the flood.

(b)

250,000 120,000

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

(c)

40,000

For increased costs associated with
transporting students as a result of the floods
of August 2007.

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

Laws 2007, First Special Session chapter 2, article 1, section 11, subdivision
6, is amended to read:

90,00014,000

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

new text begin Notwithstanding any law to the contrary,
on June 30, 2008, a school district may transfer money from its reserved for operating
capital account to its undesignated balance in the general fund. The amount transferred
by any school district must not exceed $51 times the district's adjusted marginal cost
pupil units for fiscal year 2007. This transfer may occur only after the school board has
adopted a written resolution stating the amount of the transfer and declaring that the
school district's operating capital needs are being met.
new text end

new text begin Notwithstanding Minnesota Statutes, section 123B.79 or 123B.80, or subdivision
1, on June 30, 2008, Independent School District No. 411, Balaton, may transfer up to
$70,000 from its reserved for operating capital account to its undesignated general fund
balance.
new text end

new text begin Notwithstanding Minnesota Statutes, section 123B.79 or 123B.80, or subdivision
1, on June 30, 2008, Independent School District No. 2580, East Central, may transfer up
to $300,000 from its reserved for operating capital account to its undesignated general
fund balance.
new text end

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

new text begin A school district's general education revenue under Minnesota Statutes, section
126C.10, is increased for fiscal year 2009 only by an amount equal to $51 times the
district's adjusted marginal cost pupil units for that year.
new text end

new text begin A school district that has not applied for alternative teacher compensation aid under
Minnesota Statutes, section 126C.10, subdivision 34, by March 20, 2008, is not eligible
for aid under that subdivision for fiscal year 2009. Nothing in this section limits a district's
eligibility for alternative teacher compensation aid in subsequent fiscal years.
new text end

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

new text begin (a) To implement the requirements of Minnesota Statutes, section 120B.35,
subdivision 3, paragraph (b), and to help parents and members of the public compare the
reported data, the commissioner must convene a group of expert school district assessment
and evaluation staff, including a recognized Minnesota assessment group composed
of assessment and evaluation directors and staff and researchers under Minnesota
Statutes, section 120B.299, subdivision 6, and interested stakeholders, including school
superintendents, school principals, school teachers, and parents to examine the actual
statewide performance of students using Minnesota's growth-based value-added system
and establish criteria for identifying schools and school districts that demonstrate
accelerated growth in order to advance educators' professional development and replicate
programs that succeed in meeting students' diverse learning needs.
new text end

new text begin (b) The commissioner must submit a written report to the education committees of
the house of representatives and senate by February 15, 2009, describing the criteria for
identifying schools and school districts that demonstrate accelerated growth. The group
convened under this section expires on June 30, 2009.
new text end

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

new text begin (a) To implement the requirements of Minnesota Statutes, section 120B.35,
subdivision 3, paragraph(d), clauses (1) and (2), and to help parents and members of the
public compare the reported data, the commissioner of education must convene a group of
recognized and qualified experts and interested stakeholders, including parents among
other stakeholders, to develop a model projecting anticipated performance of each high
school on preparation and rigorous coursework measures that compares the school with
similar schools. The model must use information about entering high school students
based on particular background characteristics that are predictive of differing rates of
college readiness. These characteristics include grade 8 achievement levels, high school
student mobility, high school student attendance, and the size of each entering ninth grade
class. The group of experts and stakeholders may examine other characteristics not part
of the prediction model including the nine student categories identified under the federal
2001 No Child Left Behind Act, and two student gender categories of male and female,
respectively. The commissioner annually must use the predicted level of entering students'
performance to provide a context for interpreting graduating students' actual performance.
The group convened under this section expires June 30, 2011.
new text end

new text begin (b) Consistent with paragraph (a), the commissioner also must propose an expanded
high school student data system to report preparation and rigorous coursework measures
and facilitate additional research on college readiness. This proposed data system must
expect school districts and charter schools to report data to the state education department
on each course a high school student takes and completes. The commissioner must link
the course data file to the department's existing student reporting system. The proposed
data system must enable the commissioner to prepare detailed reports, consistent with the
requirements in Minnesota Statutes, section 120B.35, subdivision 3, paragraph (d), clauses
(1) and (2), and support the development of a state P-16 longitudinal data system.
new text end

new text begin This section is effective the day following final enactment
and applies to school report cards beginning July 1, 2011.
new text end

new text begin (a) To implement the requirements of Minnesota Statutes, section 120B.35,
subdivision 3, paragraph(e), and to help parents and members of the public compare the
reported data, the commissioner of education, in consultation with interested stakeholders,
including parents among other stakeholders, must convene a group of recognized and
qualified experts to:
new text end

new text begin (1) analyze the University of Minnesota student safety and engagement survey
instrument and other commonly recognized survey instruments to select the survey
instrument that best meets state accountability requirements;
new text end

new text begin (2) ensure that the selected survey instrument has sound psychometric properties and
is useful for intervention planning;
new text end

new text begin (3) determine at what grade levels to administer the survey instrument and ensure
that the survey instrument can be used at those grade levels; and
new text end

new text begin (4) determine through disaggregated use of survey indicators or other means how to
report "safety" in order to comply with federal law.
new text end

new text begin (b) The commissioner must submit a written report to the education committees of
the house of representatives and senate by February 15, 2009, presenting the experts'
responses to paragraph (a), clauses (1) to (4). The group convened under this section
expires June 30, 2009.
new text end

new text begin This section is effective the day following final enactment
and applies to school report cards beginning July 1, 2011.
new text end

new text begin The growth-based value-added system used by the commissioner of education to
comply with Minnesota Statutes, section 120B.35, subdivision 3, paragraph (b), must
be consistent with the growth-based value-added model contained in the document
labeled "Educational Report Card Growth Model" developed in partnership with the
Minnesota Department of Education. The document must be deposited with the
Office of the Revisor of Statutes, the Legislative Reference Library, and the State Law
Library, where the document shall be maintained until the commissioner implements the
growth-based value-added system under Minnesota Statutes, section 120B.35, subdivision
3, paragraph (b). The recognized Minnesota assessment group composed of assessment
and evaluation directors and staff and researchers under Minnesota Statutes, section
120B.299, subdivision 6, must determine whether the growth-based value-added model
the commissioner uses to comply with Minnesota Statutes, section 120B.35, subdivision
3, paragraph (b), is consistent with the deposited document and report its determination to
the education committees of the house of representatives and senate by February 15, 2009.
new text end

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

new text begin The commissioner of education may use the expedited process under Minnesota
Statutes, section 14.389, to conform Minnesota Rules, part 3525.1341, to new federal
requirements on specific learning disabilities under Public Law 108-446, sections 602(30)
and 614(b)(6), the Individuals with Disabilities Education Improvement Act of 2004,
and its implementing regulations.
new text end

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

new text begin The commissioner of education must nullify and revoke by August 1, 2009, the
consolidated state plan that the state of Minnesota submitted to the federal Department
of Education on implementing the No Child Left Behind Act of 2001, and any other
Minnesota state contract or agreement entered into under the provisions of the No Child
Left Behind Act of 2001 if: (1) the commissioners of education and finance jointly
certify that by not implementing the provisions of the No Child Left Behind Act, the
state's schools will realize a net financial benefit; and (2) the commissioner of education
implements the state assessment and accountability provisions in article 1, sections 5 to 9
and 51 to 54 of this act.
new text end

new text begin (a) A school
district experiencing disparities in academic achievement is encouraged to develop a
short and long-term plan encompassing one through four years to significantly improve
students' academic achievement that uses concrete measures to eliminate differences in
academic performance among groups of students defined by race, ethnicity, and income.
The plan must:
new text end

new text begin (1) reflect a research-based understanding of high-performing educational systems
and best educational practices;
new text end

new text begin (2) include innovative and practical strategies and programs, whether existing or
new, that supplement district initiatives to increase students' academic achievement under
state and federal educational accountability requirements; and
new text end

new text begin (3) contain valid and reliable measures of student achievement that the district uses
to demonstrate the efficacy of the district plan to the commissioner of education.
new text end

new text begin (b) A district must address the elements under section 58, paragraph (a), to the
extent those elements are implicated in the district's plan.
new text end

new text begin (c) A district must identify in its plan the strategies and programs the district has
implemented and found effective in improving students' academic achievement.
new text end

new text begin (d) The district must include with the plan the amount of expenditures necessary
to implement the plan. The district must indicate how current resources are used to
implement the plan, including, but not limited to, state-limited English proficiency aid
under Minnesota Statutes, section 124D.65; integration revenue under Minnesota Statutes,
section 124D.86; early childhood family education revenue under Minnesota Statutes,
section 124D.135; school readiness aid under Minnesota Statutes, section 124D.16; basic
skills revenue under Minnesota Statutes, section 126C.10, subdivision 4; extended time
revenue under Minnesota Statutes, section 126C.10, subdivision 2a; and alternative
compensation revenue under Minnesota Statutes, section 122A.415.
new text end

new text begin (a) A school district by October 1, 2008, must submit its plan in
electronic format to the commissioner of education, consistent with subdivision 1.
new text end

new text begin (b) The commissioner of education must analyze the commonalities and differences
of the district plans and the effective strategies and programs districts have implemented
to improve students' academic achievement, and submit the analysis and underlying data
to the advisory task force on improving students' academic achievement under section
58 by November 1, 2008, and also report the substance of the analyses to the education
policy and finance committees of the legislature by January 1, 2009.
new text end

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

new text begin (a) An advisory task force on improving students' academic achievement is
established to review the plans submitted to the commissioner of education under section
57 and recommend to the education committees of the legislature a proposal for improving
students' academic achievement and eliminating differences in academic performance
among groups of students defined by race, ethnicity, and income. The task force members
must at least consider how the following education-related issues impact the educational
achievement of low-income students and students of color:
new text end

new text begin (1) rigorous preparation and coursework and how to (i) effectively invest in early
childhood and parent education, (ii) increase academic rigor and high expectations on
elementary and secondary students in schools serving a majority of low-income students
and students of color, and (iii) provide parents, educators, and community members with
meaningful opportunities to collaborate in educating students in schools serving a majority
of low-income students and students of color;
new text end

new text begin (2) professional development for educators and how to (i) provide stronger financial
and professional incentives to attract and retain experienced, bilingual, and culturally
competent teachers and administrators in schools serving a majority of low-income
students and students of color, (ii) recruit and retain teachers of color, and (iii) develop and
include cultural sensitivity and interpersonal and pedagogical skills training that teachers
need for effective intercultural teaching;
new text end

new text begin (3) English language learners and how to (i) use well-designed tests, curricula,
and English as a second language programs and services as diagnostic tools to develop
effective student interventions, (ii) monitor students' language capabilities, (iii) provide
academic instruction in English that supports students' learning and is appropriate
for students' level of language proficiency, and (iv) incorporate the perspectives and
contributions of ethnic and racial groups, consistent with Minnesota Statutes, section
120B.022, subdivision 1, paragraph (b);
new text end

new text begin (4) special education and how to (i) incorporate linguistic and cultural sensitivity
into special education diagnosis and referral, (ii) increase the frequency and quality of
prereferral interventions, and (iii) decrease the number of minority and nonnative English
speaking students inappropriately placed in special education;
new text end

new text begin (5) GRAD tests and how to (i) incorporate linguistic and cultural sensitivity into the
reading and math GRAD tests, and (ii) develop interventions to meet students' learning
needs; and
new text end

new text begin (6) valid and reliable data and how to use data on student on-time graduation rates,
student dropout rates, documented disciplinary actions, and completed and rigorous course
work indicators to determine how well-prepared, low-income students and students of
color are for postsecondary academic and career opportunities.
new text end

new text begin The task force also must examine the findings of a 2008 report by Minnesota
superintendents on strategies for creating a world-class educational system to establish
priorities for improving students' academic achievement. The task force may consider
other related matters at its discretion.
new text end

new text begin (b) The commissioner of education must convene the first meeting of the advisory
task force on improving students' academic achievement by July 1, 2008. The task force
members must adopt internal procedures and standards for subsequent meetings. The task
force is composed of the following members:
new text end

new text begin (1) a representative from a Twin Cities metropolitan area school district, a suburban
school district, a school district located in a regional center, and a rural school district, all
four representatives appointed by the state demographer based on identified concentrations
of low-performing, low-income students and students of color;
new text end

new text begin (2) a faculty member of a teacher preparation program at the University of
Minnesota's College of Education and Human Development, appointed by the college
dean or the dean's designee;
new text end

new text begin (3) a faculty member from the urban teachers program at Metropolitan State
University appointed by the university president or the president's designee;
new text end

new text begin (4) a faculty member from a Minnesota State Colleges and Universities teacher
preparation program located outside the Twin Cities metropolitan area, appointed by
the chancellor or the chancellor's designee;
new text end

new text begin (5) a classroom teacher appointed by Education Minnesota;
new text end

new text begin (6) an expert in early childhood care and education appointed by a state early
childhood organization;
new text end

new text begin (7) a member from each state council representing a community of color, appointed
by the respective council;
new text end

new text begin (8) a curriculum specialist with expertise in providing language instruction for
nonnative English speakers, appointed by a state curriculum organization;
new text end

new text begin (9) a special education teacher, appointed by a state organization of special education
educators;
new text end

new text begin (10) a parent of color, appointed by a state parent-teacher organization;
new text end

new text begin (11) a district testing director appointed by a recognized Minnesota assessment
group composed of assessment and evaluation directors and staff and researchers; and
new text end

new text begin (12) a Department of Education staff person with expertise in school desegregation
matters appointed by the commissioner of education or the commissioner's designee.
new text end

new text begin A majority of task force members, at their discretion, may invite other representatives
of interested public or nonpublic organizations, Minnesota's communities of color, and
stakeholders in local and state educational equity to become task force members. A
majority of task force members must be persons of color.
new text end

new text begin (c) Members of the task force serve without compensation. By February 15,
2009, the task force must submit a written proposal to the education policy and finance
committees of the legislature on how to significantly improve students' academic
achievement.
new text end

new text begin (d) The advisory task force expires on February 16, 2009.
new text end

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

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

new text begin For additional general education
aid according to section 49:
new text end

new text begin (b) new text end new text begin Laws 2006, chapter 263, article 3, section 16; and Laws 2007, First Special
Session chapter 2, article 1, section 11, subdivisions 3, and 4, new text end new text begin are repealed.
new text end

new text begin The sums shown in the columns marked "Appropriations" are added to or, if shown
in parentheses, subtracted from the appropriations in Laws 2007, chapter 144, article 1, to
the agencies and for the purposes specified in this article. The appropriations are from the
general fund, or another named fund, and are available for the fiscal years indicated for
each purpose. The figures "2008" and "2009" used in this article mean that the addition
to or subtraction from the appropriation listed under them is available for the fiscal year
ending June 30, 2008, or June 30, 2009, respectively. Supplemental appropriations and
reductions to appropriations for the fiscal year ending June 30, 2008, are effective the
day following final enactment.
new text end

new text begin The amounts shown in this section summarize direct appropriations, by fund, made
in this article.
new text end

		new text begin 2008 new text end		new text begin 2009 new text end		new text begin Total new text end
new text begin General new text end	new text begin $ new text end	new text begin 0 new text end	new text begin $ new text end	new text begin (19,456,000) new text end	new text begin $ new text end	new text begin (19,456,000) new text end
new text begin Total new text end	new text begin $ new text end	new text begin 0 new text end	new text begin $ new text end	new text begin (19,456,000) new text end	new text begin $ new text end	new text begin (19,456,000) new text end

new text begin $
new text end

new text begin -0-
new text end

new text begin $
new text end

new text begin (7,111,000)
new text end

new text begin $111,000 in the second year is an operating
base reduction.
new text end

new text begin $7,000,000 in the second year is a reduction
to the Achieve scholarship program under
Minnesota Statutes, section 136A.127.
new text end

new text begin $
new text end

new text begin -0-
new text end

new text begin $
new text end

new text begin (6,173,000)
new text end

new text begin Of this reduction, $5,000,000 is from the
appropriations for technology. The remainder
is from the Office of the Chancellor budget.
new text end

new text begin The reductions in this subdivision must not
result in reductions to any of the campuses
of the Minnesota State Colleges and
Universities, must not reduce the technology
expenditures or grants to the campuses, and
must not increase any assessments to the
campuses from the Office of the Chancellor.
new text end

new text begin The Board of Trustees of the Minnesota State
Colleges and Universities must reallocate
$9,000,000 of state appropriations for fiscal
year 2009 to reduce student tuition increases
to two percent at state colleges and three
percent at state universities and must not
increase student fees beyond the amount that
is currently planned for the next academic
year.
new text end

new text begin The legislature intends that by reducing
tuition increases, the student's share of
educational costs are decreased and the
state's share of educational costs are
increased, consistent with the funding policy
in Minnesota Statutes, section 135A.01. The
legislature's goal is to begin progress over the
next eight years to achieve a two-thirds state
share of educational costs and a one-third
student share as specified in Minnesota
Statutes, section 135A.01.
new text end

new text begin The system base is reduced by $8,664,000
in fiscal year 2010 and $8,665,000 in fiscal
year 2011.
new text end

new text begin $
new text end

new text begin -0-
new text end

new text begin $
new text end

new text begin (6,172,000)
new text end

new text begin The Board of Regents must not increase
student tuition or fees beyond the amount
currently planned for the next academic year.
new text end

new text begin The system base is reduced by $8,666,000
in fiscal year 2010 and $8,665,000 in fiscal
year 2011.
new text end

Minnesota Statutes 2006, section 13.32, subdivision 3, is amended to read:

Except as provided in
subdivision 5, educational data is private data on individuals and shall not be disclosed
except as follows:

(a) pursuant to section 13.05;

(b) pursuant to a valid court order;

(d) to disclose information in health and safety emergencies pursuant to the
provisions of United States Code, title 20, section 1232g(b)(1)(I) and Code of Federal
Regulations, title 34, section 99.36;

(e) pursuant to the provisions of United States Code, title 20, sections 1232g(b)(1),
(b)(4)(A), (b)(4)(B), (b)(1)(B), (b)(3)new text begin, (b)(6), (b)(7), and (i),new text end and Code of Federal
Regulations, title 34, sections 99.31, 99.32, 99.33, 99.34, deleted text beginanddeleted text end 99.35new text begin, and 99.39new text end;

(f) to appropriate health authorities to the extent necessary to administer
immunization programs and for bona fide epidemiologic investigations which the
commissioner of health determines are necessary to prevent disease or disability to
individuals in the public educational agency or institution in which the investigation
is being conducted;

(g) when disclosure is required for institutions that participate in a program under
title IV of the Higher Education Act, United States Code, title 20, section 1092;

(h) to the appropriate school district officials to the extent necessary under
subdivision 6, annually to indicate the extent and content of remedial instruction, including
the results of assessment testing and academic performance at a postsecondary institution
during the previous academic year by a student who graduated from a Minnesota school
district within two years before receiving the remedial instruction;

(i) to appropriate authorities as provided in United States Code, title 20, section
1232g(b)(1)(E)(ii), if the data concern the juvenile justice system and the ability of the
system to effectively serve, prior to adjudication, the student whose records are released;
provided that the authorities to whom the data are released submit a written request for
the data that certifies that the data will not be disclosed to any other person except as
authorized by law without the written consent of the parent of the student and the request
and a record of the release are maintained in the student's file;

(j) to volunteers who are determined to have a legitimate educational interest in
the data and who are conducting activities and events sponsored by or endorsed by the
educational agency or institution for students or former students;

(k) to provide student recruiting information, from educational data held by colleges
and universities, as required by and subject to Code of Federal Regulations, title 32,
section 216;

(l) to the juvenile justice system if information about the behavior of a student who
poses a risk of harm is reasonably necessary to protect the health or safety of the student
or other individuals;

(m) with respect to Social Security numbers of students in the adult basic education
system, to Minnesota State Colleges and Universities and the Department of Employment
and Economic Development for the purpose and in the manner described in section
124D.52, subdivision 7; deleted text beginor
deleted text end

(n) to the commissioner of education for purposes of an assessment or investigation
of a report of alleged maltreatment of a student as mandated by section 626.556. Upon
request by the commissioner of education, data that are relevant to a report of maltreatment
and are from charter school and school district investigations of alleged maltreatment of a
student must be disclosed to the commissioner, including, but not limited to, the following:

(1) information regarding the student alleged to have been maltreated;

(2) information regarding student and employee witnesses;

(3) information regarding the alleged perpetrator; and

(4) what corrective or protective action was taken, if any, by the school facility in
response to a report of maltreatment by an employee or agent of the school or school
districtnew text begin;
new text end

new text begin (o) when the disclosure is of the final results of a disciplinary proceeding on a charge
of a crime of violence or nonforcible sex offense to the extent authorized under United
States Code, title 20, section 1232g(b)(6)(A) and (B) and Code of Federal Regulations,
title 34, sections 99.31(a)(13) and (14);
new text end

new text begin (p) when the disclosure is information provided to the institution under United States
Code, title 42, section 14071, concerning registered sex offenders to the extent authorized
under United States Code, title 20, section 1232g(b)(7); or
new text end

new text begin (q) when the disclosure is to a parent of a student at an institution of postsecondary
education regarding the student's violation of any federal, state, or local law or of any
rule or policy of the institution, governing the use or possession of alcohol or of a
controlled substance, to the extent authorized under United States Code, title 20, section
1232g(i), and Code of Federal Regulations, title 34, section 99.31(a)(15), and provided the
institution has an information release form signed by the student authorizing disclosure
to a parent. The institution must notify parents about the purpose and availability of the
information release forms. At a minimum, the institution must distribute the information
release forms at parent orientation meetingsnew text end.

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

new text begin The Department of Education and the
Office of Higher Education may each share educational data with the other agency for the
purpose of analyzing and improving school district instruction, consistent with Code of
Federal Regulations, title 34, section 99.31, paragraph (a)(6). The educational data that
may be shared between the two agencies under this subdivision must be limited to:
new text end

new text begin (1) student attendance data that include the name of the school or institution, school
district, the year or term of attendance, and term type;
new text end

new text begin (2) student demographic and enrollment data;
new text end

new text begin (3) student academic performance and testing data; and
new text end

new text begin (4) any special academic services provided to a student.
new text end

new text begin Any analysis of or report on these data must contain only summary data.
new text end

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

new text begin (a) A P-20 education partnership
is established to create a seamless education system that maximizes achievements of
all students, from early childhood through elementary, secondary, and postsecondary
education, while promoting the effective and efficient use of financial and human
resources. The partnership shall consist of major statewide educational groups or
constituencies or noneducational statewide organizations with a stated interest in P-20
education. Upon enactment of this legislation, the partnership members shall be those
currently serving on the Minnesota P-16 Education Partnership plus four legislators as
follows:
new text end

new text begin (1) one senator from the majority party and one senator from the minority party,
appointed by the Subcommittee on Committees of the Committee on Rules and
Administration; and
new text end

new text begin (2) one member of the house of representatives appointed by the speaker of the
house and one member of the house of representatives appointed by the minority leader
of the house.
new text end

new text begin Prospective members may be nominated by any partnership member and new
members must be added with the approval of a two-thirds majority of the partnership
members.
new text end

new text begin The partnership must seek input from nonmember organizations having expertise to
help inform the partnership's work.
new text end

new text begin (b) Each partnership member must be represented by its formally designated leader
or the leader's designee. The partnership must meet at least three times each calendar year.
new text end

new text begin (a) The partnership must develop and submit
to the governor and the legislative committees with jurisdiction over education policy and
finance recommendations for maximizing the achievement of all P-20 students while
promoting the effective and efficient use of state resources, and maximizing the value of
the state's educational investment. Partnership recommendations must at least include a
focus on strategies, policies, and actions that:
new text end

new text begin (1) improve the quality of and access to education for all students from preschool
through graduate education;
new text end

new text begin (2) improve preparation for and transitions to postsecondary education and work; and
new text end

new text begin (3) ensure educator quality by creating rigorous standards for teacher recruitment,
teacher preparation, induction and mentoring of beginning teachers, and continuous
professional development for career teachers.
new text end

new text begin (b) Annually, by January 15, the partnership must submit a report to the governor
and the legislative committees with jurisdiction over education policy and finance
summarizing the partnership's progress in meeting its goals and recommending any
legislation needed to further partnership goals related to maximizing student achievement
and promoting effective and efficient use of resources.
new text end

new text begin The partnership expires on June 30, 2019.
new text end

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

Minnesota Statutes 2006, section 136A.101, subdivision 8, is amended to read:

"Resident student" means a student who meets one of
the following conditions:

(1) a student who has resided in Minnesota for purposes other than postsecondary
education for at least 12 months without being enrolled at a postsecondary educational
institution for more than five credits in any term;

(2) a dependent student whose parent or legal guardian resides in Minnesota at the
time the student applies;

(3) a student who graduated from a Minnesota high school, if the student was a
resident of Minnesota during the student's period of attendance at the Minnesota high
school and the student is physically attending a Minnesota postsecondary educational
institution;

(4) a student who, after residing in the state for a minimum of one year, earned a
high school equivalency certificate in Minnesota;

(5) a member, spouse, or dependent of a member of the armed forces of the United
States stationed in Minnesota on active federal military service as defined in section
190.05, subdivision 5c;

(6) new text begina spouse or dependent of a veteran, as defined in section 197.447, if the veteran
is a Minnesota resident;
new text end

new text begin (7) new text enda person or spouse of a person who relocated to Minnesota from an area that
is declared a presidential disaster area within the preceding 12 months if the disaster
interrupted the person's postsecondary education; or

deleted text begin (7)deleted text endnew text begin (8)new text end a person defined as a refugee under United States Code, title 8, section
1101(a)(42), who, upon arrival in the United States, moved to Minnesota and has
continued to reside in Minnesota.

Minnesota Statutes 2006, section 136A.121, subdivision 5, is amended to read:

The grant stipend shall be based on a sharing of
responsibility for covering the recognized cost of attendance by the applicant, the
applicant's family, and the government. The amount of a financial stipend must not
exceed a grant applicant's recognized cost of attendance, as defined in subdivision 6, after
deducting the following:

(1) the assigned student responsibility of at least deleted text begin46deleted text end new text begin44.5 new text endpercent of the cost of
attending the institution of the applicant's choosing;

(2) the assigned family responsibility as defined in section 136A.101; and

(3) the amount of a federal Pell grant award for which the grant applicant is eligible.

The minimum financial stipend is $100 per academic year.

Minnesota Statutes 2007 Supplement, section 136A.121, subdivision 7a,
is amended to read:

If the amount appropriated is determined by the
office to be more than sufficient to fund projected grant demand in the second year of the
biennium, the office may increase the living and miscellaneous expense allowance in the
second year of the biennium by up to an amount that retains sufficient appropriations
to fund the projected grant demand. The adjustment may be made one or more times.
In making the determination that there are more than sufficient funds, the office shall
balance the need for sufficient resources to meet the projected demand for grants with the
goal of fully allocating the appropriation for state grants. An increase in the living and
miscellaneous expense allowance under this subdivision does not carry forward into a
subsequent biennium. deleted text beginThis subdivision expires June 30, 2009.
deleted text end

Minnesota Statutes 2007 Supplement, section 136A.126, is amended to read:

The director of the Office of Higher Education
shall establish procedures for the distribution of scholarships to deleted text beginanydeleted text endnew text begin anew text end Minnesota resident
student whonew text begin:
new text end

new text begin (1)new text end is of one-fourth or more Indian ancestrydeleted text begin, whodeleted text endnew text begin;
new text end

new text begin (2)new text end has applied for other existing state and federal scholarship and grant programsdeleted text begin,
and who,deleted text endnew text begin;
new text end

new text begin (3) if enrolled in an undergraduate program, is eligible or would be eligible to
receive a federal Pell Grant or a state grant based on the federal needs analysis;
new text end

new text begin (4) is an undergraduate enrolled for nine semester credits per term or more, or the
equivalent, or a graduate student enrolled on a half-time basis or more according to the
postsecondary institution; and
new text end

new text begin (5)new text end in the opinion of the director of the Office of Higher Education, based upon
postsecondary institution recommendations, 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 beginScholarships 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.
deleted text end

The total cost of deleted text begineducation includes alldeleted text end new text beginattendance
shall include new text endtuition and new text beginrequired new text endfees deleted text beginfor each student enrolling in a public institution
and the portion of tuition and fees for each student enrolling in a private institution that
does not exceed the tuition and fees at a comparable public institution. Each student shall
be awarded a scholarship based on a federal standardized need analysis. Applicants are
encouraged to apply for all other sources of financial aiddeleted text endnew text begin charged by the institution and the
campus-based budget used for federal financial aid for food and shelter, books, supplies,
transportation, and miscellaneous expensesnew text end.

deleted text begin 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.
deleted text end

new text begin (a) Each student shall be awarded a scholarship based
on the federal need analysis. Applicants are encouraged to apply for all other sources of
financial aid. The amount of the award must not exceed the applicant's cost of attendance,
as defined in subdivision 3, after deducting:
new text end

new text begin (1) the expected family contribution as calculated by the federal need analysis;
new text end

new text begin (2) the amount of a federal Pell Grant award for which the applicant is eligible;
new text end

new text begin (3) the amount of the state grant;
new text end

new text begin (4) the sum of all federal Supplemental Educational Opportunity Grant, federal
Academic Competitiveness Grant, and federal Science and Mathematics Access to Retain
Talent Grant (SMART Grant) awards;
new text end

new text begin (5) the sum of all institutional grants, scholarships, tuition waivers, and tuition
remission amounts;
new text end

new text begin (6) the sum of all tribal scholarships;
new text end

new text begin (7) the amount of any other state and federal gift aid; and
new text end

new text begin (8) the amount of any private grants or scholarships.
new text end

new text begin (b) The award shall be paid directly to the postsecondary institution where the
student receives federal financial aid.
new text end

new text begin (c) Awards are limited as follows:
new text end

new text begin (1) the maximum award for an undergraduate is $4,000 per academic year;
new text end

new text begin (2) the maximum award for a graduate student is $6,000 per academic year; and
new text end

new text begin (3) the minimum award for all students is $100 per academic year.
new text end

new text begin (d) new text endScholarships may not be given to any Indian student for more than deleted text beginfivedeleted text endnew text begin threenew text end
years of study new text beginfor a two-year degree, certificate, or diploma program or five years of study
for a four-year degree program new text endat the undergraduate level and new text beginfor more than new text endfive years
at the graduate level. Students may acquire only one degree per level and one terminal
new text begin graduate new text enddegree.new text begin Scholarships may not be given to any student for more than ten years
including five years of undergraduate study and five years of graduate study.
new text end

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

Minnesota Statutes 2007 Supplement, section 136A.127, is amended to read:

The Achieve Scholarship Program is establishednew text begin
to provide scholarships to eligible students within the limits of appropriations for the
programnew text end.

For the purposes of this section, a
"qualifying program" means a rigorous secondary school program of study defined by
the Department of Education under agreement with the Secretary of Education for the
purposes of determining eligibility for the federal Academic Competitiveness Grant
Program under Title IV of the Higher Education Act of 1965, as amended.

The student shall request a
transcript from the high school. The high school shall provide a transcript to the Office
of Higher Education or to the eligible institution in which the student is enrolling,
documenting the qualifying program.new text begin The student may be required to provide additional
documentation such as:
new text end

new text begin (1) official postsecondary transcript; and
new text end

new text begin (2) official IB/AP test scores.
new text end

To be eligible to receive a scholarship under this
section, in addition to the requirements listed under section 136A.121, a student must:

(1) submit a Free Application for Federal Student Aid (FAFSA);

(2) take and receive at least a grade of C for courses that comprise a rigorous
secondary school program of study in a high school or in a home-school setting under
section 120A.22, and graduate from new text begina Minnesota new text endhigh school;

(3) have a family adjusted gross income new text beginof less than $75,000 new text endin the last complete
calendar year prior to the academic year of postsecondary attendance deleted text beginof less than $75,000deleted text endnew text begin
in which the scholarship is usednew text end;

(4) be a United States citizen or eligible noncitizen, as defined in section 484 of the
Higher Education Act, United States Code, title 20, sections 1091 et seq., as amended, and
Code of Federal Regulations, title 34, section 668.33; deleted text beginand
deleted text end

(5) be a Minnesota resident, as defined in section 136A.101, subdivision 8new text begin; and
new text end

new text begin (6) be enrolled for at least three credits per quarter or semester or the equivalent at
an eligible institution as defined under section 136A.101, subdivision 4new text end.

The Achieve Scholarship Program shall be administered
by the Minnesota Office of Higher Education. The director shall develop forms and
procedures necessary to administer the program.

A student must complete and submit an application for
the Achieve scholarship.

The deadline for the office to accept applications for Achieve
scholarships is deleted text begin30 days after the beginning of the academic term for which the application
is submitteddeleted text endnew text begin the same as that used for the state grant in section 136A.121, subdivision 13new text end.

Achieve Scholarship
Program applicants must certify on the application that they meet the income eligibility
requirement in subdivision deleted text begin5deleted text endnew text begin 4new text end, clause deleted text begin(2)deleted text endnew text begin (3)new text end. The Office of Higher Education or the
postsecondary institution may request documentation needed to confirm income eligibility.

Minnesota Achieve scholarships shall consist of
$1,200 for a student who takes and receives at least a grade of C for courses required
under a qualifying program. The scholarships may be used to pay for qualifying expenses
at eligible institutions.

Qualifying expenses are components included
under the cost of attendance used for federal student financial aid programs, as defined in
section 472 of the Higher Education Act, United States Code, title 20, sections 1091 et
seq., as amended.

The Achieve scholarship may only be used to
pay qualifying expenses at an eligible institution as defined under section 136A.101,
subdivision 4.

A scholarship earned by a student
is available for four years immediately following high school graduation. The office
must certify to the commissioner of finance by October 1 of each year the amounts to be
canceled from scholarship eligibility that have expired.

The office shall make two equal
payments to a postsecondary institution on behalf of the student. deleted text beginThe second payment
must be madedeleted text end After the student successfully completes the first term of enrollmentnew text begin, the
second payment must be made during the student's next term of enrollment at an eligible
institution. If the second disbursement is not within the same academic year as the first
disbursement, the student must request the second disbursementnew text end.

By January 15 of each odd-numbered year, the
Office of Higher Education shall submit a report, to the committees of the legislature with
jurisdiction over higher education finance and policy, regarding the success of the program
in increasing the enrollment of students in rigorous high school courses, including, at a
minimum, the following information:

(1) the demographics of individuals participating in the program;

(2) the grades scholarship recipients received for courses in the qualifying program
under subdivision 2;

(3) the number of scholarship recipients who persisted at a postsecondary institution
for a second year;

(4) the high schools attended by the program participants;

(5) the postsecondary institutions attended by the program participants;

(6) the academic performance of the students after enrolling in a postsecondary
institution; and

(7) other information as identified by the director.

new text begin This section is effective the day following final enactment
and within the limits of appropriations applies to students who graduate from high school
after January 1, 2008.
new text end

Minnesota Statutes 2007 Supplement, section 136A.128, is amended by
adding a subdivision to read:

new text begin A nonprofit organization that receives a grant under this
section may use five percent of the grant amount to administer the program.
new text end

new text begin This section is effective the day following final enactment for
grants under Minnesota Statutes, section 136A.128, beginning in fiscal year 2008.
new text end

Minnesota Statutes 2007 Supplement, section 136A.65, subdivision 1, is
amended to read:

No school subject to registration shall grant a degree
unless such degree and its underlying curriculum are approved by the office, nor shall
any school subject to registration use the name "collegedeleted text begin,deleted text end" deleted text begin"academy," "institute"deleted text end or
"university" in its name without approval by the office.

Minnesota Statutes 2007 Supplement, section 136A.65, subdivision 3, is
amended to read:

A school subject to registration shall be granted approval
to use the term "collegedeleted text begin,deleted text end" deleted text begin"academy," "institute,"deleted text end or "university" in its name if it was
organized, operating, and using such term in its name on or before August 1, 2007, and if
it meets the other policies and standards for approval established by the office.

Minnesota Statutes 2007 Supplement, section 136A.65, subdivision 5, is
amended to read:

For each
degree new text beginand nondegree program new text enda school offers to a student, where the student does not
leave Minnesota for the major portion of the program or course leading to the degreenew text begin or
nondegree awardnew text end, the school must have:

(1) new text beginfor degree programs:
new text end

new text begin (i) new text endqualified teaching personnel to provide the educational programs for each degree
for which approval is sought;

deleted text begin (2)deleted text end new text begin(ii) new text endappropriate educational programs leading to each degree for which approval
is sought;

deleted text begin (3)deleted text end new text begin(iii) new text endappropriate and accessible library, laboratory, and other physical facilities to
support the educational program for each degree for which approval is sought; and

deleted text begin (4)deleted text end new text begin(iv) new text enda rationale showing that degree programs are consistent with the school's
mission and goalsdeleted text begin.deleted text endnew text begin; and
new text end

new text begin (2) for nondegree programs:
new text end

new text begin (i) qualified teaching personnel to provide the educational programs for which
approval is sought;
new text end

new text begin (ii) appropriate educational programs leading to each award for which approval
is sought;
new text end

new text begin (iii) appropriate and accessible library, laboratory, and other physical facilities to
support the educational program for which approval is sought; and
new text end

new text begin (iv) a rationale showing that programs are consistent with the school's mission
and goals.
new text end

new text begin Nondegree programs that are a part of an approved degree shall not require
additional review or approval; they shall be considered approved as a part of the degree
approval. Any nondegree program offered by a degree-granting school that is not a part of
an approved degree shall be subject to clause (2), items (i) to (iv).
new text end

Minnesota Statutes 2007 Supplement, section 136A.65, subdivision 6, is
amended to read:

A new text begindegree-granting new text endschool may use the term "academy" or "institute"
in its name without meeting any additional requirements. A school may use the term
"college" in its name if it offers at least one program leading to an associate degree. A
school may use the term "university" in its name if it offers at least one program leading
to a master's or doctorate degree.

Minnesota Statutes 2007 Supplement, section 136A.65, subdivision 7, is
amended to read:

The office may grant conditional approval for a
degree or use of a term in its name for a period of less than one year if doing so would be
in the best interests of currently enrolled students or prospective students.new text begin New schools
may be granted conditional approval for degrees or names annually for a period not to
exceed five years to allow them the opportunity to apply for and receive accreditation as
required in subdivision 1a.
new text end

Minnesota Statutes 2007 Supplement, section 136A.66, is amended to read:

	$	deleted text begin 5,618,342,000 deleted text end new text begin 5,600,647,000 new text end	.....	2008
	$	deleted text begin 5,618,342,000 deleted text end new text begin 5,649,098,000 new text end	.....	2009

	$	deleted text begin 95,000 deleted text end new text begin 48,000 new text end	.....	2008
	$	deleted text begin 97,000 deleted text end new text begin 50,000 new text end	.....	2009

	$	deleted text begin 1,343,000 deleted text end new text begin 1,333,000 new text end	.....	2008
	$	deleted text begin 1,347,000 deleted text end new text begin 1,629,000 new text end	.....	2009

	$	deleted text begin 565,000 deleted text end new text begin 240,000 new text end	.....	2008
	$	deleted text begin 212,000 deleted text end new text begin 339,000 new text end	.....	2009

	$	deleted text begin 16,290,000 deleted text end new text begin 15,601,000 new text end	.....	2008
	$	deleted text begin 16,620,000 deleted text end new text begin 16,608,000 new text end	.....	2009

	$	deleted text begin 21,551,000 deleted text end new text begin 20,755,000 new text end	.....	2008
	$	deleted text begin 21,392,000 deleted text end new text begin 21,007,000 new text end	.....	2009

	$	deleted text begin 31,875,000 deleted text end new text begin 32,817,000 new text end	.....	2008
	$	deleted text begin 36,193,000 deleted text end new text begin 37,527,000 new text end	.....	2009

	$	deleted text begin 1,896,000 deleted text end new text begin 1,801,000 new text end	.....	2008
	$	deleted text begin 2,161,000 deleted text end new text begin 1,987,000 new text end	.....	2009

	$	deleted text begin 61,769,000 deleted text end new text begin 59,036,000 new text end	.....	2008
	$	deleted text begin 61,000,000 deleted text end new text begin 62,448,000 new text end	.....	2009

	$	deleted text begin 9,639,000 deleted text end new text begin 9,901,000 new text end	.....	2008
	$	deleted text begin 11,567,000 deleted text end new text begin 11,881,000 new text end	.....	2009

	$	deleted text begin 2,238,000 deleted text end new text begin 2,207,000 new text end	.....	2008
	$	deleted text begin 2,422,000 deleted text end new text begin 2,392,000 new text end	.....	2009

	$	deleted text begin 1,538,000 deleted text end new text begin 2,086,000 new text end	.....	2008
	$	deleted text begin 1,729,000 deleted text end new text begin 2,282,000 new text end	.....	2009

	$	deleted text begin 254,000 deleted text end new text begin 207,000 new text end	.....	2008
	$	deleted text begin 284,000 deleted text end new text begin 227,000 new text end	.....	2009

	$	deleted text begin 190,000 deleted text end new text begin 254,000 new text end	.....	2008
	$	deleted text begin 179,000 deleted text end new text begin 103,000 new text end	.....	2009

	$	deleted text begin 14,813,000 deleted text end new text begin 14,814,000 new text end	.....	2008
	$	deleted text begin 11,124,000 deleted text end new text begin 9,109,000 new text end	.....	2009

	$	deleted text begin 3,290,000 deleted text end new text begin 3,232,000 new text end	.....	2008
	$	deleted text begin 2,667,000 deleted text end new text begin 2,627,000 new text end	.....	2009

	$	deleted text begin 38,145,000 deleted text end new text begin 38,236,000 new text end	.....	2008
	$	deleted text begin 52,676,000 deleted text end new text begin 52,454,000 new text end	.....	2009

	$	deleted text begin 12,022,000 deleted text end new text begin 12,094,000 new text end	.....	2008
	$	deleted text begin 12,166,000 deleted text end new text begin 12,394,000 new text end	.....	2009

	$	deleted text begin 5,460,000 deleted text end new text begin 5,583,000 new text end	.....	2008
	$	deleted text begin 5,695,000 deleted text end new text begin 5,994,000 new text end	.....	2009

	$	deleted text begin 150,000 deleted text end new text begin 127,000 new text end	.....	2008
	$	150,000	.....	2009

new text begin APPROPRIATIONS
new text end

new text begin Available for the Year
new text end

new text begin Ending June 30
new text end

new text begin 2008
new text end

new text begin 2009
new text end

	$	deleted text begin 21,106,000 deleted text end new text begin 21,092,000 new text end	.....	2008
	$	deleted text begin 29,601,000 deleted text end new text begin 29,324,000 new text end	.....	2009

	$	deleted text begin 9,995,000 deleted text end new text begin 9,987,000 new text end	.....	2008
	$	10,095,000	.....	2009

	$	deleted text begin 3,159,000 deleted text end new text begin 2,624,000 new text end	.....	2008
	$	deleted text begin 3,330,000 deleted text end new text begin 2,656,000 new text end	.....	2009

	$	deleted text begin 1,307,000 deleted text end new text begin 1,299,000 new text end	.....	2008
	$	deleted text begin 816,000 deleted text end new text begin 796,000 new text end	.....	2009

	$	deleted text begin 710,000 deleted text end new text begin 709,000 new text end	.....	2008
	$	710,000	.....	2009

	$	deleted text begin 40,347,000 deleted text end new text begin 40,344,000 new text end	.....	2008
	$	deleted text begin 41,745,000 deleted text end new text begin 41,712,000 new text end	.....	2009