SF 750

as introduced - 85th Legislature (2007 - 2008) Posted on 12/15/2009 12:00am

A bill for an act
relating to education; providing for early childhood and family, prekindergarten
through grade 12, and adult education, including general education, education
excellence, special programs, facilities and technology, nutrition and accounting,
libraries, early childhood education, prevention, self-sufficiency and lifelong
learning, and stage agencies; authorizing rulemaking; appropriating money;
amending Minnesota Statutes 2006, sections 120B.021, subdivision 1; 120B.022,
subdivision 1; 120B.023, subdivision 2; 120B.024; 120B.132; 122A.415,
subdivisions 1, 3; 122A.72, subdivision 5; 123B.10, subdivision 1; 123B.53,
subdivision 1; 123B.57, subdivision 3; 123B.92, subdivision 1; 124D.11,
subdivision 1; 124D.128, subdivisions 1, 2, 3; 124D.13, subdivisions 1, 2, by
adding a subdivision; 124D.135, subdivisions 3, 5, 6; 124D.42, subdivision 6,
by adding a subdivision; 124D.454, subdivisions 2, 3; 124D.65, subdivision
5; 125A.75, subdivision 4; 125A.76, subdivisions 1, 2, 4, 5, by adding a
subdivision; 125A.79, subdivisions 5, 6, 8; 126C.05, subdivisions 8, 15; 126C.10,
subdivisions 2, 2a, 4, 13a, 18, 24, 26, 27, 31, 34, by adding a subdivision;
126C.21, subdivision 3; 127A.47, subdivision 8; 127A.49, subdivisions 2, 3;
272.02, subdivision 64; 272.029, by adding a subdivision; 517.08, subdivision
1c; Laws 2006, chapter 282, article 3, section 4, subdivision 2; proposing coding
for new law in Minnesota Statutes, chapters 119A; 120B; 122A; 124D; repealing
Minnesota Statutes 2006, sections 124D.454, subdivisions 4, 5, 6, 7; 125A.76,
subdivision 3; 126C.10, subdivisions 25, 28.

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

ARTICLE 1

GENERAL EDUCATION

Section 1.

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

Subdivision 1.

Revenue amount.

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

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

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

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

Alternative teacher compensation revenue for a qualifying school district or site in
which the school board and the exclusive representative of the teachers agree to place
teachers in the district or at the site on the alternative teacher professional pay system
equals $260 new text begin times the ratio of the formula allowance for the current fiscal year to the
formula allowance for fiscal year 2007 new text end times the number of pupils enrolled at the district
or site on October 1 of the previous fiscal year. Alternative teacher compensation revenue
for a qualifying intermediate school district must be calculated under section 126C.10,
subdivision 34, paragraphs (a) and (b).

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

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

new text begin EFFECTIVE DATE. new text end

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

Sec. 2.

Minnesota Statutes 2006, section 122A.415, subdivision 3, is amended to read:

Subd. 3.

Revenue timing.

(a) Districts, intermediate school districts, school sites,
or charter schools with approved applications must receive alternative compensation
revenue for each school year that the district, intermediate school district, school site,
or charter school implements an alternative teacher professional pay system under this
subdivision and section 122A.414. For fiscal year 2007 and later, a qualifying district,
intermediate school district, school site, or charter school that received alternative teacher
compensation aid for the previous fiscal year must receive at least an amount of alternative
teacher compensation revenue equal to the lesser of the amount it received for the previous
fiscal year or the amount it qualifies for under subdivision 1 for the current fiscal year if
the district, intermediate school district, school site, or charter school submits a timely
application and the commissioner determines that the district, intermediate school district,
school site, or charter school continues to implement an alternative teacher professional
pay system, consistent with its application under this section.

(b) The commissioner shall approve applications that comply with subdivision 1,
and section 122A.414, subdivisions 2, paragraph (b), and 2a, if the applicant is a charter
school, in the order in which they are received, select applicants that qualify for this
program, notify school districts, intermediate school districts, school sites, and charter
schools about the program, develop and disseminate application materials, and carry out
other activities needed to implement this section.

deleted text begin (c) For applications approved under this section before August 1 of the fiscal year for
which the aid is paid, the portion of the state total basic alternative teacher compensation
aid entitlement allocated to charter schools must not exceed $522,000 for fiscal year
2006 and $3,374,000 for fiscal year 2007. For fiscal year 2008 and later, the portion of
the state total basic alternative teacher compensation aid entitlement allocated to charter
schools must not exceed the product of $3,374,000 times the ratio of the state total charter
school enrollment for the previous fiscal year to the state total charter school enrollment
for the second previous year. Additional basic alternative teacher compensation aid may
be approved for charter schools after August 1, not to exceed the charter school limit for
the following fiscal year, if the basic alternative teacher compensation aid entitlement
for school districts based on applications approved by August 1 does not expend the
remaining amount under the limit.
deleted text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 3.

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

Subdivision 1.

General education revenue.

(a) General education revenue must
be paid to a charter school as though it were a district. The general education revenue
for each adjusted marginal cost pupil unit is the state average general education revenue
per pupil unit, plus the referendum equalization aid allowance in the pupil's district of
residence, minus an amount equal to the product of the formula allowance according to
section 126C.10, subdivision 2, times deleted text begin .0485 deleted text end new text begin .0416 new text end , calculated without basic skills revenue,
extended time revenue, alternative teacher compensation revenue, transition revenue, and
transportation sparsity revenue, plus basic skills revenue, extended time revenue, basic
alternative teacher compensation aid according to section 126C.10, subdivision 34, and
transition revenue as though the school were a school district. The general education
revenue for each extended time marginal cost pupil unit equals $4,378 new text begin for fiscal year 2007,
$4,499 for fiscal year 2008, and $4,589 for fiscal year 2009 and later new text end .

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

new text begin EFFECTIVE DATE. new text end

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

Sec. 4.

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

Subdivision 1.

Program established.

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

Sec. 5.

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

Subd. 2.

Commissioner designation.

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

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

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

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

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

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

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

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

Sec. 6.

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

Subd. 3.

Student planning.

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

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

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

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

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

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

Sec. 7.

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

Subd. 5.

School district LEP revenue.

(a) new text begin The limited English proficiency
allowance equals $700 for fiscal year 2007, $714 for fiscal year 2008, and $729 for fiscal
year 2009 and later.
new text end

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

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

new text begin EFFECTIVE DATE. new text end

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

Sec. 8.

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

Subd. 8.

Average daily membership.

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

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

new text begin EFFECTIVE DATE. new text end

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

Sec. 9.

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

Subd. 15.

Learning year pupil units.

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

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

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

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

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

new text begin EFFECTIVE DATE. new text end

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

Sec. 10.

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

Subd. 2.

Basic revenue.

The basic revenue for each district equals the formula
allowance times the adjusted marginal cost pupil units for the school year. The formula
allowance for fiscal year deleted text begin 2005 deleted text end new text begin 2007 new text end is deleted text begin $4,601 deleted text end new text begin $4,974 new text end . The formula allowance for fiscal
year deleted text begin 2006 deleted text end new text begin 2008 new text end is deleted text begin $4,783 deleted text end new text begin $5,074 new text end . The formula allowance for fiscal year deleted text begin 2007 deleted text end new text begin 2009 new text end and
subsequent years is deleted text begin $4,974 deleted text end new text begin $5,176 new text end .

Sec. 11.

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

Subd. 2a.

Extended time revenue.

(a) A school district's extended time revenue is
equal to the product of deleted text begin $4,601 deleted text end new text begin the extended time allowance new text end and the sum of the adjusted
marginal cost pupil units of the district for each pupil in average daily membership in
excess of 1.0 and less than deleted text begin 1.2 deleted text end new text begin 1.5 new text end according to section 126C.05, subdivision 8. new text begin The
extended time allowance is $4,601 for fiscal year 2007, $4,694 for fiscal year 2008, and
$4,788 for fiscal year 2009 and subsequent years.
new text end

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

new text begin EFFECTIVE DATE. new text end

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

Sec. 12.

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

Subd. 4.

Basic skills revenue.

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

(1) compensatory revenue under subdivision 3; plus

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

(3) deleted text begin $250 deleted text end new text begin the limited English proficiency concentration allowance new text end times the limited
English proficiency new text begin concentration new text end pupil units under section 126C.05, subdivision 17.
new text begin The limited English proficiency concentration allowance equals $250 for fiscal year 2007,
$255 for fiscal year 2008, and $261 for fiscal year 2009 and subsequent years.
new text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 13.

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

Subd. 13a.

Operating capital levy.

To obtain operating capital revenue for fiscal
year 2007 and later, a district may levy an amount not more than the product of its
operating capital revenue for the fiscal year times the lesser of one or the ratio of its
adjusted net tax capacity per adjusted marginal cost pupil unit to the operating capital
equalizing factor. The operating capital equalizing factor equals deleted text begin $22,222 for fiscal year
2006, and deleted text end $10,700 for fiscal year deleted text begin 2007 deleted text end new text begin 2008 and $17,590 for fiscal year 2009 new text end and later.

new text begin EFFECTIVE DATE. new text end

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

Sec. 14.

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

Subd. 18.

Transportation sparsity revenue allowance.

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

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

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

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

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

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

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

new text begin EFFECTIVE DATE. new text end

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

Sec. 15.

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

Subd. 24.

Equity revenue.

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

(1) the school district's deleted text begin adjusted marginal cost pupil unit amount of basic revenue,
supplemental revenue, transition revenue, and deleted text end referendum revenue new text begin per resident marginal
cost pupil unit new text end is less than deleted text begin the value of the school district at or immediately above the 95th
percentile of school districts in its equity region for those revenue categories deleted text end new text begin 27 percent of
the formula allowance new text end ; and

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

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

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

(d) A school district's equity revenue is increased by the greater of zero or an amount
equal to the district's resident marginal cost pupil units times the difference between deleted text begin ten deleted text end
new text begin 1.5 new text end percent of the deleted text begin statewide average amount of referendum revenue per resident marginal
cost pupil unit deleted text end new text begin formula allowance new text end for that year and the district's referendum revenue per
resident marginal cost pupil unit. A school district's revenue under this paragraph must
not exceed $100,000 for that year.

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

(f) For fiscal year deleted text begin 2007 deleted text end new text begin 2008 new text end and later, notwithstanding paragraph (a), clause (2), a
school district that deleted text begin has per pupil referendum revenue below the 95th percentile deleted text end new text begin qualifies
for equity revenue under paragraph (a), clause (1), new text end qualifies for additional equity revenue
equal to $46 times its adjusted marginal cost pupil deleted text begin unit deleted text end new text begin units new text end .

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

new text begin EFFECTIVE DATE. new text end

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

Sec. 16.

Minnesota Statutes 2006, section 126C.10, subdivision 26, is amended to read:

Subd. 26.

District equity gap.

A district's equity gap equals the greater of zero or
the difference between deleted text begin the district's adjusted general revenue and the value of the school
district at or immediately above the regional 95th percentile of adjusted general revenue
per adjusted deleted text end new text begin 27 percent of the formula allowance and the sum of the district's equity
revenue per resident new text end marginal cost pupil unit new text begin according to subdivision 24, paragraph
(c), and district's referendum revenue per resident marginal cost pupil unit according
to section 126C.17 new text end .

new text begin EFFECTIVE DATE. new text end

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

Sec. 17.

Minnesota Statutes 2006, section 126C.10, subdivision 27, is amended to read:

Subd. 27.

District equity index.

A district's equity index equals the ratio of the
deleted text begin sum of the deleted text end district equity gap amount to deleted text begin the regional equity gap amount deleted text end new text begin 27 percent of the
formula allowance new text end .

new text begin EFFECTIVE DATE. new text end

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

Sec. 18.

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

Subd. 31.

Transition revenue.

(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 year deleted text begin 2006 deleted text end new text begin 2008 new text end and later equals the
sum of new text begin (1) new text end the product of the district's transition allowance times the district's adjusted
marginal cost pupil units plus new text begin (2) new text end the district's transition for prekindergarten revenue under
subdivision 31a new text begin plus (3) the product of the district's transition equity allowance under
subdivision 31c times the district's adjusted marginal cost pupil units new text end .

new text begin EFFECTIVE DATE. new text end

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

Sec. 19.

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

new text begin Subd. 31c. new text end

new text begin Transition equity allowance. new text end

new text begin For fiscal year 2008 and later, a district's
transitional equity allowance equals the greater of zero or the difference between the
equity revenue the district would have received for fiscal year 2008 under section
126C.10, subdivision 24, and the district's equity revenue for fiscal year 2008, divided by
the district's adjusted marginal cost pupil units for fiscal year 2008.
new text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 20.

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

Subd. 34.

Basic alternative teacher compensation aid.

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

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

new text begin (b) For fiscal year 2008 and later, the basic alternative teacher compensation aid for
a school district with a plan approved under section 122A.414, subdivision 2b, equals the
alternative teacher compensation revenue under section 122A.415, subdivision 1, minus
$70 times the number of pupils enrolled at participating sites on October 1 of the previous
fiscal year. The basic alternative teacher compensation aid for an intermediate school
district or charter school with a plan approved under section 122A.414, subdivisions 2a
and 2b, if the recipient is a charter school, equals $260 times the ratio of the formula
allowance for the current fiscal year to the formula allowance for fiscal year 2007 times
the number of pupils enrolled in the school on October 1 of the previous fiscal year, or on
October 1 of the current fiscal year for a charter school in the first year of operation, times
the ratio of the sum of the alternative teacher compensation aid and alternative teacher
compensation levy for all participating school districts to the maximum alternative teacher
compensation revenue for those districts under section 122A.415, subdivision 1.
new text end

(c) Notwithstanding paragraphs (a) and (b) and section 122A.415, subdivision 1,
the state total basic alternative teacher compensation aid entitlement must not exceed
deleted text begin $19,329,000 for fiscal year 2006 and deleted text end $75,636,000 for fiscal year 2007 deleted text begin and later deleted text end . new text begin For
fiscal years 2008 and later, the state total basic alternative teacher compensation aid
entitlement must not exceed the product of the limit on state total basic alternative teacher
compensation aid for the previous fiscal year times 1.1 times the ratio of the formula
allowance for the current fiscal year to the formula allowance for the previous fiscal
year. new text end The commissioner must limit the amount of alternative teacher compensation aid
approved under section 122A.415 so as not to exceed these limits.

new text begin EFFECTIVE DATE. new text end

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

Sec. 21.

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

Subd. 3.

County apportionment deduction.

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

new text begin EFFECTIVE DATE. new text end

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

Sec. 22.

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

Subd. 8.

Charter schools.

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

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

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

(2) the product of $223 deleted text begin and deleted text end new text begin for fiscal year 2007, $195 for fiscal year 2008, and
$199 for fiscal year 2009 and later times new text end the extended time marginal cost pupil units
attributable to the pupil.

new text begin EFFECTIVE DATE. new text end

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

Sec. 23.

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

Subd. 2.

Abatements.

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

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

(2) the ratio of:

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

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

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

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

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

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

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

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

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

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

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

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

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

Sec. 24.

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

Subd. 3.

Excess tax increment.

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

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

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

(2) the ratio of:

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Sec. 25.

Minnesota Statutes 2006, section 272.02, subdivision 64, is amended to read:

Subd. 64.

Job opportunity building zone property.

(a) Improvements to real
property, and personal property, classified under section 273.13, subdivision 24, and
located within a job opportunity building zone, designated under section 469.314, are
exempt from ad valorem taxes levied under chapter 275.

(b) Improvements to real property, and tangible personal property, of an agricultural
production facility located within an agricultural processing facility zone, designated
under section 469.314, is exempt from ad valorem taxes levied under chapter 275.

(c) For property to qualify for exemption under paragraph (a), the occupant must be
a qualified business, as defined in section 469.310.

(d) The exemption applies beginning for the first assessment year after designation
of the job opportunity building zone by the commissioner of employment and economic
development. The exemption applies to each assessment year that begins during the
duration of the job opportunity building zone. To be exempt, the property must be
occupied by July 1 of the assessment year by a qualified business that has signed the
business subsidy agreement and relocation agreement, if required, by July 1 of the
assessment year. This exemption does not apply to deleted text begin :
deleted text end

deleted text begin (1) deleted text end the levy under section 475.61 or similar levy provisions under any other law to
pay general obligation bonds deleted text begin ; or deleted text end new text begin .
new text end

deleted text begin (2) a levy under section 126C.17, if the levy was approved by the voters before the
designation of the job opportunity building zone.
deleted text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 26.

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

new text begin Subd. 6a. new text end

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

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

new text begin EFFECTIVE DATE. new text end

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

Sec. 27.

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

Subd. 2.

Onetime energy assistance aid.

For onetime energy assistance aid under
section 3:

$

3,495,000

.....

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

new text begin EFFECTIVE DATE. new text end

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

Sec. 28. new text begin APPROPRIATIONS.
new text end

new text begin Subdivision 1. new text end

new text begin Department of Education. new text end

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

new text begin Subd. 2. new text end

new text begin General education aid. new text end

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

	new text begin $ new text end	new text begin 5,593,263,000 new text end	new text begin ..... new text end	new text begin 2008 new text end
	new text begin $ new text end	new text begin 5,699,797,000 new text end	new text begin ..... new text end	new text begin 2009 new text end

new text begin The 2008 appropriation includes $531,494,000 for 2007 and $5,061,769,000 for
2008.
new text end

new text begin The 2009 appropriation includes $543,274,000 for 2008 and $5,156,523,000 for
2009.
new text end

new text begin Subd. 3. new text end

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

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

new text begin $ new text end

new text begin 870,000 new text end

new text begin ..... new text end

new text begin 2008 new text end

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

new text begin Subd. 4. new text end

new text begin Enrollment options transportation. new text end

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

	new text begin $ new text end	new text begin 88,000 new text end	new text begin ..... new text end	new text begin 2008 new text end
	new text begin $ new text end	new text begin 90,000 new text end	new text begin ..... new text end	new text begin 2009 new text end

new text begin Subd. 5. new text end

new text begin Abatement revenue. new text end

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

	new text begin $ new text end	new text begin 1,433,000 new text end	new text begin ..... new text end	new text begin 2008 new text end
	new text begin $ new text end	new text begin 1,489,000 new text end	new text begin ..... new text end	new text begin 2009 new text end

new text begin The 2008 appropriation includes $76,000 for 2007 and $1,357,000 for 2008.
new text end

new text begin The 2009 appropriation includes $150,000 for 2008 and $1,339,000 for 2009.
new text end

new text begin Subd. 6. new text end

new text begin Consolidation transition. new text end

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

	new text begin $ new text end	new text begin 565,000 new text end	new text begin ..... new text end	new text begin 2008 new text end
	new text begin $ new text end	new text begin 214,000 new text end	new text begin ..... new text end	new text begin 2009 new text end

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

new text begin The 2009 appropriation includes $58,000 for 2008 and $156,000 for 2009.
new text end

new text begin Subd. 7. new text end

new text begin Nonpublic pupil education aid. new text end

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

	new text begin $ new text end	new text begin 16,524,000 new text end	new text begin ..... new text end	new text begin 2008 new text end
	new text begin $ new text end	new text begin 16,962,000 new text end	new text begin ..... new text end	new text begin 2009 new text end

new text begin The 2008 appropriation includes $1,608,000 for 2007 and $14,916,000 for 2008.
new text end

new text begin The 2009 appropriation includes $1,656,000 for 2008 and $15,306,000 for 2009.
new text end

new text begin Subd. 8. new text end

new text begin Nonpublic pupil transportation. new text end

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

	new text begin $ new text end	new text begin 20,804,000 new text end	new text begin ..... new text end	new text begin 2008 new text end
	new text begin $ new text end	new text begin 20,889,000 new text end	new text begin ..... new text end	new text begin 2009 new text end

new text begin The 2008 appropriation includes $2,053,000 for 2007 and $18,751,000 for 2008.
new text end

new text begin The 2009 appropriation includes $2,082,000 for 2008 and $18,807,000 for 2009.
new text end

new text begin Subd. 9. new text end

new text begin One-room schoolhouse. new text end

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

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

new text begin Subd. 10. new text end

new text begin Compensatory revenue pilot project. new text end

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

	new text begin $ new text end	new text begin 2,100,000 new text end	new text begin ..... new text end	new text begin 2008 new text end
	new text begin $ new text end	new text begin 2,100,000 new text end	new text begin ..... new text end	new text begin 2009 new text end

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

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

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

Sec. 29. new text begin REPEALER.
new text end

new text begin Minnesota Statutes 2006, section 126C.10, subdivisions 25 and 28, new text end new text begin are repealed
effective for fiscal year 2008 and thereafter.
new text end

ARTICLE 2

EDUCATION EXCELLENCE

Section 1.

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

Subdivision 1.

Required academic standards.

The following subject areas are
required for statewide accountability:

(1) language arts;

(2) mathematics;

(3) science;

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

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

(6) the arts, for which statewide or locally developed academic standards apply, as
determined by the school district deleted text begin . deleted text end new text begin so that:
new text end

new text begin (i) new text end public elementary and middle schools deleted text begin must deleted text end offer at least three and require at least
two of the following four arts areas: dance; music; theater; and visual arts deleted text begin . deleted text end new text begin ; and new text end

new text begin (ii) new text end public high schools deleted text begin must deleted text end offer at least three and require at least one of the
following five arts areas: media arts; dance; music; theater; and visual arts deleted text begin . deleted text end new text begin ; and
new text end

new text begin (7) a world language, for which locally developed academic standards apply.
new text end

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

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

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

Sec. 2.

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

Subdivision 1.

Elective standards.

A district must establish its own deleted text begin standards in the
following subject areas:
deleted text end

deleted text begin (1) vocational deleted text end new text begin career new text end and technical education deleted text begin ; and
deleted text end

deleted text begin (2) world languages deleted text end new text begin standards new text end .

A school district must offer courses in deleted text begin all elective subject areas deleted text end new text begin career and technical
education new text end .

Sec. 3.

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

Subd. 2.

Revisions and reviews required.

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

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

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

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

The commissioner also must ensure that the statewide mathematics assessments
administered to students in grades 3 through 8 and 11 beginning in the 2010-2011
school year are aligned with the state academic standards in mathematics. The statewide
11th grade mathematics test administered to students under clause (2) beginning in
the 2013-2014 school year must include algebra II test items that are aligned with
corresponding state academic standards in mathematics. The commissioner must
implement a review of the academic standards and related benchmarks in mathematics
beginning in the 2015-2016 school year.

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

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

(e) The commissioner in the 2009-2010 school year must revise and align the state's
academic standards and high school graduation requirements in language arts to require
that students satisfactorily complete the revised language arts standards beginning in the
2012-2013 school year. The commissioner must implement a review of the academic
standards and related benchmarks in language arts beginning in the 2018-2019 school year.

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

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

new text begin (h) Students who graduate in the 2014-2015 school year or later must satisfactorily
complete four credits of a world language between grades 7 through 12 as a graduation
requirement.
new text end

Sec. 4.

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

120B.024 GRADUATION REQUIREMENTS; COURSE CREDITS.

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

(1) four credits of language arts;

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

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

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

(5) one credit in the arts; and

(6) a minimum of deleted text begin seven deleted text end new text begin three new text end elective course credits.

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

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

Sec. 5.

new text begin [120B.0245] ENSURING ACADEMIC RIGOR AND POSTSECONDARY
COLLEGE AND CAREER OPPORTUNITIES.
new text end

new text begin Subdivision 1. new text end

new text begin Dual credit course and program requirements. new text end

new text begin To learn effectively
without remediation in college and career preparation programs, public high school
students must complete one full school year of dual credit secondary and postsecondary
academic or career and technical courses or programs, consistent with section 120B.024,
as a condition of graduating from high school. To enable students to comply with this
requirement, and to acquire academic and work-ready knowledge and skills critical to
meeting college and workplace expectations, all public high schools must make available
dual-credit courses and programs that may include:
new text end

new text begin (1) advanced placement courses or international baccalaureate programs under
section 120B.13;
new text end

new text begin (2) postsecondary enrollment options courses and programs under section 124D.09;
new text end

new text begin (3) concurrent enrollment courses under section 124D.09, subdivision 10, whether
or not the postsecondary institution grants postsecondary credit to high school students;
new text end

new text begin (4) college in the schools courses under section 124D.09, subdivision 10;
new text end

new text begin (5) college-level examination programs under section 120B.131;
new text end

new text begin (6) work-based learning programs under sections 124D.4531, 124D.46, 124D.47,
or 124D.49; or
new text end

new text begin (7) other relevant dual-credit course and program options that effectively prepare
students for postsecondary education and careers.
new text end

new text begin School staff must continuously work with and support each student to strategically
plan and complete a core academic program and an academic or career and technical
concentration, consistent with this section and section 120B.024.
new text end

new text begin Subd. 2. new text end

new text begin Expectations and opportunities for 3R high schools. new text end

new text begin (a) A high school
that applies to the commissioner to receive 3R high school aid under subdivision 3 must
use the funds the applicant receives to comply with the requirements of this subdivision.
new text end

new text begin (b) A 3R high school must contract with a provider approved by the Department
of Education to implement a college access program that helps students, beginning in
grade 9, and their families determine students' interests in postsecondary education and
employment. The program also may provide:
new text end

new text begin (1) college admission and financial aid counseling, mentoring, SAT and ACT test
preparation, tutoring, and career guidance; and
new text end

new text begin (2) ongoing support to help students complete the academic requirements necessary
for college or for career and technical programs that lead to an associate's degree or a
certificate, without remediation.
new text end

new text begin (c) A 3R high school must implement and review at least annually a personal
graduation plan for every student beginning no later than grade 9 that allows the student to:
new text end

new text begin (1) explore career options, match careers with the student's identified interests
and skills, and, with sufficient school support, pursue college or postsecondary career
opportunities;
new text end

new text begin (2) identify the student's academic and career goals and the academic, school
leadership and participation, community service, work, career planning, and
extracurricular activities that the student anticipates pursuing during high school; and
new text end

new text begin (3) monitor the student's progress in completing the course credits the student needs
to graduate on time.
new text end

new text begin The student, the student's parents, and the school staff annually must review and
revise the student's personal graduation plan and parents annually must sign the plan to
indicate their agreement with its content and their willingness to support their student and
the school in realizing the student's plan.
new text end

new text begin (d) A 3R high school must provide effective professional development and training
programs that give teachers and the principal ongoing opportunities to observe exemplary
educators and gain practical on-the-job teaching or administrative experience, and ensure
that:
new text end

new text begin (1) teachers have a sufficiently high level of knowledge and skills to teach their
subject areas effectively and help low-performing students succeed; and
new text end

new text begin (2) the principal, or other person having administrative control of the school, is
sufficiently autonomous and successful to be able to continuously improve rates of student
achievement, student attendance, student graduation, and staff retention.
new text end

new text begin A 3R high school is encouraged to enter into a school site decision-making
agreement under section 123B.04 to increase the school's autonomy and student
performance and to offer administrative opportunities to interested licensed teachers.
new text end

new text begin (e) A 3R high school must provide its students with:
new text end

new text begin (1) rigorous academic courses and challenging instruction;
new text end

new text begin (2) relevant and accelerated learning opportunities;
new text end

new text begin (3) critical academic and workplace skills;
new text end

new text begin (4) performance expectations and formative assessments linked to postsecondary
readiness standards;
new text end

new text begin (5) ongoing support for college and career readiness; and
new text end

new text begin (6) opportunities to participate in online learning courses where appropriate.
new text end

new text begin (f) A 3R high school must develop and implement a data system for school
improvement that uses formative and summative assessments to at least:
new text end

new text begin (1) monitor student progress through established curriculum and against state and
local standards;
new text end

new text begin (2) identify the needs and challenges of specific classes, grades, and demographic
groups of students;
new text end

new text begin (3) provide instruction that meets students' identified needs;
new text end

new text begin (4) identify exemplary faculty members to share instructional plans and strategies
that may help support individual teachers;
new text end

new text begin (5) analyze disaggregated student assessment data for purposes of making
comparisons, planning instruction, and monitoring student progress;
new text end

new text begin (6) determine whether or not the students are completing the course credit
requirements they need to graduate on time; and
new text end

new text begin (7) develop goals and benchmarks for school improvement planning.
new text end

new text begin (g) A 3R high school must use student progress data to identify those students who
are not completing the course credit requirements they need to graduate on time, and
provide the educational support to enable those students to graduate on time.
new text end

new text begin Subd. 3. new text end

new text begin 3R high school aid. new text end

new text begin (a) A 3R high school aid program is established to
help public high schools meet expectations and realize opportunities for world-class, 21st
century high schools, consistent with subdivisions 1 and 2.
new text end

new text begin (b) Interested public high schools must submit an application to the commissioner,
in the form and manner the commissioner determines, that demonstrates the applicanta??s
ability to meet the requirements of this section. A high school that does not enroll students
in grade 9 may submit a joint application with one or more junior high schools located
in the high school attendance area. The commissioner must approve or disapprove the
application based on the requirements under subdivision 2.
new text end

new text begin (c) For fiscal year 2008, the 3R high school aid for a school district, intermediate
school district, charter school, or cooperative equals the product of $68 times the number
of pupils in grades 9 through 12 enrolled on October 1 of the previous school year in
schools with an approved application under paragraph (b). For fiscal years 2009 and
later, the 3R high school aid for a school district, intermediate school district, charter
school, or cooperative equals the product of $200 times the number of pupils in grades 9
through 12 enrolled on October 1 of the previous school year in schools with an approved
application under paragraph (b).
new text end

new text begin (d) Notwithstanding paragraph (c), the aid for an eligible charter school in its first
year of operation must be computed using the number of pupils in grades 9 through 12
enrolled on October 1 of the current school year in a school with an approved application
under paragraph (b).
new text end

new text begin (e) Aid recipients must periodically report to the commissioner on their efforts
under this section.
new text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 6.

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

120B.132 RAISED ACADEMIC ACHIEVEMENT; ADVANCED
PLACEMENT PROGRAMS.

Subdivision 1.

Establishment; eligibility.

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

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

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

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

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

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

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

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

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

Subd. 2.

Application and review process; funding priority.

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

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

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

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

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

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

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

Subd. 3.

Funding; permissible funding uses.

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

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

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

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

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

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

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

(4) purchase books and supplies;

(5) pay course or program fees;

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

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

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

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

Subd. 4.

Annual reports.

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

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

new text begin EFFECTIVE DATE. new text end

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

Sec. 7.

new text begin [122A.623] INDUCTION PROGRAM FOR NEW TEACHERS.
new text end

new text begin Subdivision 1. new text end

new text begin Program established. new text end

new text begin (a) A new teacher induction program is
established to assist newly licensed elementary and secondary teachers whose initial
teaching assignment involves teaching in a high-need subject area or public school. For
purposes of this section, a "high-need subject area" for teacher licensure includes career
and technical education, science, mathematics, foreign languages, English as a second
language, and special education; and a "high-need" school is one where 35 percent or
more of enrolled students are eligible to receive a free or reduced price lunch and the
school failed to demonstrate adequate yearly progress in the two preceding school years.
new text end

new text begin (b) Regional education service providers participating in this program must assist
school districts and charter schools employing new teachers, school sites where new
teachers work, and interested intermediate school districts to:
new text end

new text begin (1) adopt a teaching model that supports new teachers' professional development
and growth and trains teacher mentors to successfully work with, coach, and observe the
new teachers;
new text end

new text begin (2) provide unique professional learning activities that promote the growth of a new
teacher's practice in areas including classroom management, subject matter mastery,
pedagogy, relevant curriculum, effective instructional strategies, lesson planning, and
student assessments;
new text end

new text begin (3) provide time for new teachers and mentors to work together;
new text end

new text begin (4) establish expectations for mentors' coaching responsibilities and new teachers'
observations of exemplary teachers;
new text end

new text begin (5) provide and use formative assessments based on professional teaching standards
to improve new teachers' instructional practice, and establish professional development
goals;
new text end

new text begin (6) evaluate the program to determine its effectiveness and impact on new teacher
performance, recruitment, and retention;
new text end

new text begin (7) adopt a model to deliver the new teacher induction program.
new text end

new text begin Subd. 2. new text end

new text begin Eligibility; application; program funding. new text end

new text begin (a) Regional education service
providers, including education service cooperatives, school districts, postsecondary
institutions, charter schools, and other qualified education entities able to assist school
districts, charter schools, school sites, and intermediate school districts in supporting
newly licensed teachers, consistent with subdivision 1, may apply to the commissioner,
in the form and manner the commissioner prescribes, to participate in this program.
Applicants must demonstrate to the commissioner's satisfaction that the applicant is able
to meet the requirements of subdivision 1 and also must describe in the application:
new text end

new text begin (1) the roles and relationship among participating school districts, charter schools,
school sites, and intermediate school districts and the regional education service provider;
new text end

new text begin (2) the program components for each participant;
new text end

new text begin (3) the applicant's program components;
new text end

new text begin (4) how the applicant proposes to expend new teacher induction revenue; and
new text end

new text begin (5) the actual program costs the applicant anticipates incurring.
new text end

new text begin (b) In reviewing timely plans submitted to the commissioner, only those applicants
the commissioner determines have satisfied all requirements of this subdivision and
subdivision 1 are eligible for program funding.
new text end

new text begin (c) The commissioner must approve funding for the new teacher induction program
on a first-come, first-served basis and must determine the amount of funding available to a
qualified regional education service provider based on actual program costs detailed in
the provider's application.
new text end

new text begin Subd. 3. new text end

new text begin Planning; staff development revenue. new text end

new text begin Staff development revenue
available under sections 122A.60 and 122A.61 may be used to develop the program
plan under this section.
new text end

new text begin Subd. 4. new text end

new text begin Reports. new text end

new text begin Regional education service providers that participate in the
program annually must report to the commissioner in the form and manner determined
by the commissioner on the implementation and effectiveness of the provider's program
and plan. Regional education service providers must survey participating school districts,
charter schools, school sites, and intermediate school districts as part of the report. The
commissioner must complete a timely review of the report to determine the providers'
ongoing eligibility to receive new teacher induction program funding.
new text end

new text begin Subd. 5. new text end

new text begin Statewide training and assistance. new text end

new text begin The Department of Education, upon
request, may assist regional education service providers in developing a program plan.
The department also may provide regional education service providers with ongoing
support for teacher mentor training and staff development for new teachers, and may
provide materials and other assistance.
new text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 8.

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

Subd. 5.

Center functions.

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

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

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

new text begin (2) mathematics and science programs and instructional models that inspire teachers
and students and have practical classroom application.
new text end

Sec. 9.

Minnesota Statutes 2006, section 124D.42, subdivision 6, is amended to read:

Subd. 6.

Program training.

The commission must, within available resources:

(1) orient each grantee organization in the nature, philosophy, and purpose of the
program; new text begin and
new text end

(2) build an ethic of community service through general community service training deleted text begin ;
and
deleted text end

deleted text begin (3) provide additional training as it determines necessary, which may include
training in evaluating early literacy skills and teaching reading to preschool children
through the St. Croix River Education District under Laws 2001, First Special Session
chapter 6, article 2, section 70, to assist local Head Start organizations in establishing and
evaluating Head Start programs for developing children's early literacy skills deleted text end .

Sec. 10.

Minnesota Statutes 2006, section 124D.42, is amended by adding a
subdivision to read:

new text begin Subd. 8. new text end

new text begin The Minnesota reading corps program. new text end

new text begin (a) The Minnesota reading corps
program is established to provide training in a data-based problem-solving model of
literacy instruction to Americorps members working with local Head Start organizations,
other prekindergarten settings, and kindergarten through grade 3 schools to evaluate and
teach early literacy skills to children ages 3 to grade 3.
new text end

new text begin (1) Data collected will be used to tailor specific interventions for children.
new text end

new text begin (2) These interventions shall be guided by formative and summative general
outcome assessments linked to research-based indicators of literacy development.
new text end

new text begin (3) The assessments will guide the implementation of coaching models for
AmeriCorps members and staff that is designed to develop internal literacy coaches that
sustain the model over time.
new text end

new text begin (b) The Minnesota Commission on National and Community Service shall give
priority for allocating AmeriCorps members to partnerships of prekindergarten and
kindergarten through grade 3 schools that have agreed to a goal of closing the literacy
achievement gap by the end of grade 3 by implementing a seamless literacy model from
age 3 to grade 3 in the partnership agencies.
new text end

new text begin (1) The commission shall collect literacy data on children across this age range for
the purpose of documenting the impact of the age 3 to grade 3 model on closing the
literacy achievement gap.
new text end

new text begin (2) The commission shall be required to submit an annual report to the commissioner
of education by January 1.
new text end

Sec. 11. new text begin ALTERNATIVE SCHOOL CALENDAR PILOT PROGRAM.
new text end

new text begin Subdivision 1. new text end

new text begin Establishment. new text end

new text begin Notwithstanding Minnesota Statutes, sections
120A.41, 120A.415, or other law to the contrary, a six-year alternative school calendar
pilot program is established to examine the impact of school calendar arrangements on
student learning by comparing studentsa?? academic gains in school districts and charter
schools that use traditional and nontraditional school calendars. The commissioner of
education must structure the program and select program participants with the purpose of
comparing the impact of traditional and nontraditional school calendars on:
new text end

new text begin (1) the amount of educational material students retain after school vacations;
new text end

new text begin (2) the educational enrichment opportunities and remedial help available to students
throughout the school year;
new text end

new text begin (3) the impact of the calendar on student attendance, student disciplinary actions,
and student achievement test scores; and
new text end

new text begin (4) the amount of time available to students and school staff for out-of-school
learning, vacations, and recreation.
new text end

new text begin Subd. 2. new text end

new text begin Eligibility; application. new text end

new text begin An interested school district, charter school, or
group of school districts or charter schools that participate for a particular purpose may
apply to the commissioner of education to participate in this pilot program in the form
and manner the commissioner determines. An applicant must identify in its application
the internal and external factors that it anticipates may determine its preference for a
traditional or nontraditional school calendar, including the impact of the school calendar
on: costs related to employee compensation, transportation, food, facility use throughout
the calendar year, and facility maintenance; needs of at-risk students; number of
instructional and staff development days; and the availability of extracurricular activities,
community resources, and before and after-school care and child care. The commissioner
may require an applicant to provide additional information.
new text end

new text begin Subd. 3. new text end

new text begin Application review; grant awards. new text end

new text begin When reviewing an application, the
commissioner must determine whether the applicant met the requirements in subdivisions
1 and 2 and only an applicant that satisfies all the requirements is eligible to receive a grant
under this section. The commissioner must distribute grant awards, to the extent feasible,
on an equitable geographical basis. The commissioner must base the amount of the grant
award on the number of students the grantee has enrolled in school and the length and
structure of the granteea??s school calendar. Grant expenditures must be consistent with
budget information the grantee periodically submits to the commissioner.
new text end

new text begin Subd. 4. new text end

new text begin Evaluation. new text end

new text begin The commissioner must provide for an evaluation of the
impact of school calendar arrangements on student learning, consistent with this section,
and recommend to the education policy and finance committees of the legislature
by February 1, 2015, a preferred school calendar based upon demonstrated student
achievement and the criteria listed in subdivision 1.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment
and applies to the 2008-2009 through 2013-2014 school years.
new text end

Sec. 12. new text begin MANDARIN CHINESE PROGRAM GRANTS.
new text end

new text begin (a) A pilot program for fiscal years 2008 and 2009 is established to assist interested
school districts or charter schools in initiating Mandarin Chinese programs or enhancing
successful models in place. The commissioner shall select program participants to include
both instate and outstate school districts or charter schools equitably to the extent possible.
new text end

new text begin (b) An interested school district, charter school, or group of school districts or
charter schools may apply to the commissioner of education in the form and manner the
commissioner determines. Eligible applicants must identify in their applications program
model: description of capacity for offering programs, including staffing; articulation
plan as needed based on program model; steps for the development of benchmarks and
the assessment of language proficiency; evidence of necessary target student population
that aligns with proposed program model; evidence of community and staff support;
plan for sustainability beyond the period of start-up funding; and the ability to provide
matching funds.
new text end

new text begin (c) When reviewing applications, the commissioner shall determine whether
applicants meet the requirements in paragraphs (a) and (b). Grants shall be provided
to applicants that satisfy all the requirements to assist in initiating Mandarin Chinese
programs or enhancing successful models in place. The commissioner may award up to
25 grants and shall distribute the grant awards to instate and outstate school districts or
charter schools equitably to the extent possible.
new text end

new text begin (d) The commissioner shall provide for an evaluation of the impact of each Mandarin
Chinese program biannually.
new text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 13. new text begin SUCCESSFUL SCHOOLS AID.
new text end

new text begin Subdivision 1. new text end

new text begin Eligibility. new text end

new text begin A school is eligible for successful schools aid if the
school earned at least three stars in reading or mathematics on its school performance
report card for the previous school year or if all pupils enrolled at the school are in
prekindergarten through grade 2.
new text end

new text begin Subd. 2. new text end

new text begin Successful schools allowance. new text end

new text begin For fiscal years 2008 and 2009 only, the
successful schools allowance equals $75,000,000 divided by the number of pupils enrolled
in eligible schools on October 1 of the previous school year. However, the successful
schools allowance must be at least $90 and must not exceed $150.
new text end

new text begin Subd. 3. new text end

new text begin Aid. new text end

new text begin For fiscal years 2008 and 2009 only, the successful schools aid for a
school district, intermediate school district, charter school, cooperative, or the Perpich
Center for Arts Education equals the product of the successful schools allowance times the
number of pupils enrolled in eligible schools on October 1 of the previous school year.
new text end

new text begin Subd. 4. new text end

new text begin Uses. new text end

new text begin The aid must be allocated to the school building where the pupils who
generated the revenue are served. The aid may be used for any purpose for which general
education revenue under section 126C.10 may be used, except permanent salary increases.
new text end

Sec. 14. new text begin APPROPRIATIONS.
new text end

new text begin Subdivision 1. new text end

new text begin Department. new text end

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

new text begin Subd. 2. new text end

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

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

	new text begin $ new text end	new text begin 31,915,000 new text end	new text begin ..... new text end	new text begin 2008 new text end
	new text begin $ new text end	new text begin 36,270,000 new text end	new text begin ..... new text end	new text begin 2009 new text end

new text begin The 2008 appropriation includes $2,815,000 for 2007 and $29,100,000 for 2008.
new text end

new text begin The 2009 appropriation includes $3,233,000 for 2008 and $33,037,000 for 2009.
new text end

new text begin Subd. 3. new text end

new text begin Charter school startup aid. new text end

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

	new text begin $ new text end	new text begin 1,888,000 new text end	new text begin ..... new text end	new text begin 2008 new text end
	new text begin $ new text end	new text begin 2,161,000 new text end	new text begin ..... new text end	new text begin 2009 new text end

new text begin The 2008 appropriation includes $238,000 for 2007 and $1,650,000 for 2008.
new text end

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

new text begin Subd. 4. new text end

new text begin Integration aid. new text end

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

	new text begin $ new text end	new text begin 61,941,000 new text end	new text begin ..... new text end	new text begin 2008 new text end
	new text begin $ new text end	new text begin 61,654,000 new text end	new text begin ..... new text end	new text begin 2009 new text end

new text begin The 2008 appropriation includes $5,810,000 for 2007 and $56,131,000 for 2008.
new text end

new text begin The 2009 appropriation includes $6,236,000 for 2008 and $55,418,000 for 2009.
new text end

new text begin Subd. 5. new text end

new text begin Magnet school grants. new text end

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

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

new text begin These amounts may be used for magnet school programs under Minnesota Statutes,
section 124D.88.
new text end

new text begin Subd. 6. new text end

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

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

	new text begin $ new text end	new text begin 8,976,000 new text end	new text begin ..... new text end	new text begin 2008 new text end
	new text begin $ new text end	new text begin 10,771,000 new text end	new text begin ..... new text end	new text begin 2009 new text end

new text begin Subd. 7. new text end

new text begin Success for the future. new text end

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

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

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

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

new text begin Subd. 8. new text end

new text begin American Indian scholarships. new text end

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

	new text begin $ new text end	new text begin 1,875,000 new text end	new text begin ..... new text end	new text begin 2008 new text end
	new text begin $ new text end	new text begin 1,875,000 new text end	new text begin ..... new text end	new text begin 2009 new text end

new text begin Subd. 9. new text end

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

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

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

new text begin Subd. 10. new text end

new text begin Tribal contract schools. new text end

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

	new text begin $ new text end	new text begin 2,231,000 new text end	new text begin ..... new text end	new text begin 2008 new text end
	new text begin $ new text end	new text begin 2,428,000 new text end	new text begin ..... new text end	new text begin 2009 new text end

new text begin The 2008 appropriation includes $203,000 for 2007 and $2,028,000 for 2008.
new text end

new text begin The 2009 appropriation includes $224,000 for 2008 and $2,204,000 for 2009.
new text end

new text begin Subd. 11. new text end

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

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

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

new text begin Subd. 12. new text end

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

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

	new text begin $ new text end	new text begin 15,373,000 new text end	new text begin ..... new text end	new text begin 2008 new text end
	new text begin $ new text end	new text begin 19,874,000 new text end	new text begin ..... new text end	new text begin 2009 new text end

new text begin $11,883,000 in fiscal year 2008 and $15,214,000 in fiscal year 2009 are to continue
the general administration and reporting of the statewide testing program.
new text end

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

new text begin $2,340,000 in fiscal year 2008 and $3,510,000 in fiscal year 2009 are to implement a
computer-based formative assessment component.
new text end

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

new text begin The base for this program in fiscal year 2010 and later is $21,263,000.
new text end

new text begin Subd. 13. new text end

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

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

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

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

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

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

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

new text begin Subd. 14. new text end

new text begin Advanced placement and international baccalaureate programs. new text end

new text begin For
advanced placement, preadvanced placement, and international baccalaureate programs
under Minnesota Statutes, section 120B.132:
new text end

	new text begin $ new text end	new text begin 7,300,000 new text end	new text begin ..... new text end	new text begin 2008 new text end
	new text begin $ new text end	new text begin 8,111,000 new text end	new text begin ..... new text end	new text begin 2009 new text end

new text begin The 2008 appropriation includes $7,300,000 for fiscal year 2008. The 2009
appropriation includes $811,000 for fiscal year 2008 and $7,300,000 for fiscal year 2009.
new text end

new text begin Subd. 15. new text end

new text begin First grade preparedness. new text end

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

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

new text begin Subd. 16. new text end

new text begin Collaborative urban educator. new text end

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

	new text begin $ new text end	new text begin 1,301,000 new text end	new text begin ..... new text end	new text begin 2008 new text end
	new text begin $ new text end	new text begin 1,301,000 new text end	new text begin ..... new text end	new text begin 2009 new text end

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

new text begin Subd. 17. new text end

new text begin Youth works program. new text end

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

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

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

new text begin Subd. 18. new text end

new text begin Student organizations. new text end

new text begin For student organizations:
new text end

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

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

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

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

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

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

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

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

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

new text begin Subd. 19. new text end

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

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

	new text begin $ new text end	new text begin 1,293,000 new text end	new text begin ..... new text end	new text begin 2008 new text end
	new text begin $ new text end	new text begin 1,293,000 new text end	new text begin ..... new text end	new text begin 2009 new text end

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

new text begin The base for this program in fiscal year 2010 and later is $1,394,000.
new text end

new text begin Subd. 20. new text end

new text begin College Level Examination program (CLEP). new text end

new text begin For the College Level
Examination program (CLEP) under Minnesota Statutes, section 120B.131:
new text end

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

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

new text begin Subd. 21. new text end

new text begin Best practices. new text end

new text begin (a) For best practices grants:
new text end

	new text begin $ new text end	new text begin 1,210,000 new text end	new text begin ..... new text end	new text begin 2008 new text end
	new text begin $ new text end	new text begin 1,210,000 new text end	new text begin ..... new text end	new text begin 2009 new text end

new text begin (b) $400,000 each year is for a grant to the Minnesota Humanities Commission
under Minnesota Statutes, section 138.911.
new text end

new text begin (c) $150,000 each year is for a grant to the Minnesota Historical Society.
new text end

new text begin (d) $160,000 each year is for a grant to A Chance to Grow/New Visions for the
Minnesota Learning Resource Center's comprehensive training program for education
professionals charged with helping children acquire basic reading and mathematic skills.
new text end

new text begin (e) $400,000 each year is for the Principals' Leadership Institute under Minnesota
Statutes, section 122A.74. Any balance in the first year does not cancel but is available
in the second year.
new text end

new text begin (f) $100,000 each year is for the quantum opportunities program.
new text end

new text begin Subd. 22. new text end

new text begin 3R high schools. new text end

new text begin For 3R high school aid under Minnesota Statutes,
section 120B.0245:
new text end

	new text begin $ new text end	new text begin 19,147,000 new text end	new text begin ..... new text end	new text begin 2008 new text end
	new text begin $ new text end	new text begin 55,927,000 new text end	new text begin ..... new text end	new text begin 2009 new text end

new text begin Subd. 23. new text end

new text begin Successful schools. new text end

new text begin For successful schools aid under section 13:
new text end

	new text begin $ new text end	new text begin 75,000,000 new text end	new text begin ..... new text end	new text begin 2008 new text end
	new text begin $ new text end	new text begin 75,000,000 new text end	new text begin ..... new text end	new text begin 2009 new text end

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

new text begin Subd. 24. new text end

new text begin Alternative school calendar pilot program. new text end

new text begin For the alternative school
calendar pilot program under section 11:
new text end

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

new text begin A base of $2,000,000 is established for the period of the pilot program.
new text end

new text begin Subd. 25. new text end

new text begin Minnesota first five new teacher induction program. new text end

new text begin For the Minnesota
first five new teacher induction program under section 122A.623:
new text end

	new text begin $ new text end	new text begin 2,220,000 new text end	new text begin ..... new text end	new text begin 2008 new text end
	new text begin $ new text end	new text begin 2,220,000 new text end	new text begin ..... new text end	new text begin 2009 new text end

new text begin The commissioner shall distribute the grant funds based on teacher license shortages
and high needs schools and districts.
new text end

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

new text begin Subd. 26. new text end

new text begin Teacher training in mathematics and science instruction. new text end

new text begin For teacher
training in mathematics and science instruction under Minnesota Statutes, section
122A.72, subdivision 5, paragraph (b):
new text end

	new text begin $ new text end	new text begin 2,000,000 new text end	new text begin ..... new text end	new text begin 2008 new text end
	new text begin $ new text end	new text begin 4,000,000 new text end	new text begin ..... new text end	new text begin 2009 new text end

new text begin Subd. 27. new text end

new text begin Mandarin Chinese program. new text end

new text begin For Mandarin Chinese program grants
under section 12:
new text end

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

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

new text begin Subd. 28. new text end

new text begin The Minnesota Reading Corps program. new text end

new text begin For the establishment of the
Minnesota Reading Corps program under Minnesota Statutes, section 124D.42:
new text end

	new text begin $ new text end	new text begin 1,900,000 new text end	new text begin ..... new text end	new text begin 2008 new text end
	new text begin $ new text end	new text begin 1,900,000 new text end	new text begin ..... new text end	new text begin 2009 new text end

new text begin $1,000,000 each year is for leveraging federal and private funding to support
AmeriCorps members serving in the Minnesota Reading Corps program established by
Serve Minnesota, including costs associated with the training and teaching of early literacy
skills to children ages three to grade 3 and the evaluation of the impact of the program
under Minnesota Statutes, section 124D.42, subdivision 8.
new text end

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

ARTICLE 3

SPECIAL PROGRAMS

Section 1.

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

Subdivision 1.

Definitions.

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

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

(1) the sum of:

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

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

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

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

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

(1) Regular transportation is:

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

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

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

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

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

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

(2) Excess transportation is:

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

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

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

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

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

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

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

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

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

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

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

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

(5) "Nonpublic nonregular transportation" is:

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

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

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

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

new text begin EFFECTIVE DATE. new text end

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

Sec. 2.

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

Subd. 2.

Definitions.

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

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

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

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

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

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

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

new text begin EFFECTIVE DATE. new text end

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

Sec. 3.

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

Subd. 3.

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

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

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

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

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

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

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

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

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

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

new text begin EFFECTIVE DATE. new text end

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

Sec. 4.

Minnesota Statutes 2006, section 125A.75, subdivision 4, is amended to read:

Subd. 4.

Program and aid approval.

Before June 1 of each year, each district
providing special instruction and services to children with a disability new text begin , including children
eligible for Part C, as defined in sections 125A.02, subdivision 1, and 125A.27, subdivision
8, new text end must submit to the commissioner an application for approval of these programs and their
budgets for the next fiscal year. The application must include an enumeration of the costs
proposed as eligible for state aid pursuant to this section and of the estimated number and
grade level of children with a disability in the district who will receive special instruction
and services during the regular school year and in summer school programs during
the next fiscal year. The application must also include any other information deemed
necessary by the commissioner for the calculation of state aid and for the evaluation of the
necessity of the program, the necessity of the personnel to be employed in the program,
for determining the amount which the program will receive from grants from federal
funds, or special grants from other state sources, and the program's compliance with the
rules and standards of the Department of Education. The commissioner shall review each
application to determine whether the program and the personnel to be employed in the
program are actually necessary and essential to meet the district's obligation to provide
special instruction and services to children with a disability pursuant to sections 125A.03
to 125A.24, 125A.259 to 125A.48, and 125A.65. The commissioner shall not approve aid
pursuant to this section for any program or for the salary of any personnel determined to
be unnecessary or unessential on the basis of this review. The commissioner may withhold
all or any portion of the aid for programs which receive grants from federal funds, or
special grants from other state sources. By August 31 the commissioner shall approve,
disapprove, or modify each application, and notify each applying district of the action
and of the estimated amount of aid for the programs. The commissioner shall provide
procedures for districts to submit additional applications for program and budget approval
during the fiscal year, for programs needed to meet any substantial changes in the needs
of children with a disability in the district. Notwithstanding the provisions of section
127A.42, the commissioner may modify or withdraw the program or aid approval and
withhold aid pursuant to this section without proceeding according to section 127A.42
at any time the commissioner determines that the program does not comply with rules
of the Department of Education or that any facts concerning the program or its budget
differ from the facts in the district's approved application.

new text begin EFFECTIVE DATE. new text end

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

Sec. 5.

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

Subdivision 1.

Definitions.

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

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

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

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

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

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

new text begin EFFECTIVE DATE. new text end

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

Sec. 6.

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

Subd. 2.

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

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

(1) 68 percent of the salary of each essential person employed in the district's
program for children with a disability during the fiscal year, whether the person is
employed by one or more districts or a Minnesota correctional facility operating on a
fee-for-service basis;

(2) for the Minnesota State Academy for the Deaf or the Minnesota State Academy
for the Blind, 68 percent of the salary of each instructional aide assigned to a child
attending the academy, if that aide is required by the child's individual education plan;

(3) for special instruction and services provided to any pupil by contracting with
public, private, or voluntary agencies other than school districts, in place of special
instruction and services provided by the district, 52 percent of the difference between the
amount of the contract and the amount of the basic revenue, as defined in section 126C.10,
subdivision 2, special education aid, and any other aid earned on behalf of the child for the
fraction of the school day the pupil receives services under the contract;

(4) for special instruction and services provided to any pupil by contracting for
services with public, private, or voluntary agencies other than school districts, that are
supplementary to a full educational program provided by the school district, 52 percent of
the amount of the contract for that pupil;

(5) for supplies and equipment purchased or rented for use in the instruction of
children with a disability, an amount equal to 47 percent of the sum actually expended by
the district, or a Minnesota correctional facility operating on a fee-for-service basis, but
not to exceed an average of $47 in any one school year for each child with a disability
receiving instruction;

(6) for fiscal years 1997 and later, special education base revenue shall include
amounts under clauses (1) to (5) for special education summer programs provided during
the base year for that fiscal year; deleted text begin and
deleted text end

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

The department shall establish procedures through the uniform financial accounting
and reporting system to identify and track all revenues generated from third-party billings
as special education revenue at the school district level; include revenue generated from
third-party billings as special education revenue in the annual cross-subsidy report; and
exclude third-party revenue from calculation of excess cost aid to the districts new text begin ; and
new text end

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

deleted text begin (b) If requested by a school district operating a special education program during
the base year for less than the full fiscal year, or a school district in which is located a
Minnesota correctional facility operating on a fee-for-service basis for less than the full
fiscal year, the commissioner may adjust the base revenue to reflect the expenditures
that would have occurred during the base year had the program been operated for the
full fiscal year.
deleted text end

deleted text begin (c) Notwithstanding paragraphs (a) and (b), the portion of a school district's base
revenue attributable to a Minnesota correctional facility operating on a fee-for-service
basis during the facility's first year of operating on a fee-for-service basis shall be
computed using current year data.
deleted text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 7.

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

Subd. 4.

State total special education aid.

deleted text begin The state total special education aid
for fiscal year 2004 equals $530,642,000. deleted text end The state total special education aid deleted text begin for fiscal
year 2005 deleted text end equals deleted text begin $529,164,000 deleted text end new text begin $549,222,000 for fiscal year 2008, $560,523,000 for fiscal
year 2009, $562,092,000 for fiscal year 2010, and $564,001,000 for fiscal year 2011 new text end . The
state total special education aid for later fiscal years equals:

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

(2) the program growth factor; times

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

new text begin EFFECTIVE DATE. new text end

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

Sec. 8.

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

Subd. 5.

School district special education aid.

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

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

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

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

new text begin EFFECTIVE DATE. new text end

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

Sec. 9.

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

new text begin Subd. 8. new text end

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

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

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

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

new text begin EFFECTIVE DATE. new text end

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

Sec. 10.

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

Subd. 5.

Initial excess cost aid.

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

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

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

deleted text begin (3) deleted text end zero.

new text begin EFFECTIVE DATE. new text end

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

Sec. 11.

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

Subd. 6.

State total special education excess cost aid.

The state total special
education excess cost aid deleted text begin for fiscal year 2005 deleted text end equals deleted text begin $91,811,000 deleted text end new text begin $107,435,000 for fiscal
year 2008, $109,753,000 for fiscal year 2009, $109,996,000 for fiscal year 2010, and
$110,333,000 for fiscal year 2011 new text end . deleted text begin The state total special education excess cost aid equals
$103,600,000 for fiscal year 2006 and $104,700,000 for fiscal year 2007. deleted text end The state total
special education excess cost aid for deleted text begin fiscal year 2008 and deleted text end later fiscal years equals:

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

(2) the program growth factor; times

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

new text begin EFFECTIVE DATE. new text end

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

Sec. 12.

Minnesota Statutes 2006, section 125A.79, subdivision 8, is amended to read:

Subd. 8.

Out-of-state tuition.

For children who are residents of the state, receive
services under section 125A.76, subdivisions 1 and 2, and are placed in a care and
treatment facility by court action in a state that does not have a reciprocity agreement
with the commissioner under section 125A.155, the resident school district shall submit
the balance of the tuition bills, minus the deleted text begin amount of the basic revenue, as defined
by section 126C.10, subdivision 2, of the district for the child and deleted text end new text begin general education
revenue, excluding basic skills revenue and alternative teacher compensation revenue, and
referendum equalization aid attributable to the pupil, calculated using the resident district's
average general education revenue and referendum equalization aid per adjusted pupil unit
minus new text end the special education deleted text begin aid, and any other aid earned on behalf of the child deleted text end new text begin contracted
services initial aid attributable to the pupil new text end .

new text begin EFFECTIVE DATE. new text end

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

Sec. 13. new text begin APPROPRIATIONS.
new text end

new text begin Subdivision 1. new text end

new text begin Department of Education. new text end

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

new text begin Subd. 2. new text end

new text begin Special education; regular. new text end

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

	new text begin $ new text end	new text begin 547,266,000 new text end	new text begin ..... new text end	new text begin 2008 new text end
	new text begin $ new text end	new text begin 559,394,000 new text end	new text begin ..... new text end	new text begin 2009 new text end

new text begin The 2008 appropriation includes $52,965,000 for 2007 and $494,301,000 for 2008.
new text end

new text begin The 2009 appropriation includes $54,921,000 for 2008 and $504,473,000 for 2009.
new text end

new text begin Subd. 3. new text end

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

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

	new text begin $ new text end	new text begin 1,536,000 new text end	new text begin ..... new text end	new text begin 2008 new text end
	new text begin $ new text end	new text begin 1,727,000 new text end	new text begin ..... new text end	new text begin 2009 new text end

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

new text begin Subd. 4. new text end

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

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

	new text begin $ new text end	new text begin 237,000 new text end	new text begin ..... new text end	new text begin 2008 new text end
	new text begin $ new text end	new text begin 248,000 new text end	new text begin ..... new text end	new text begin 2009 new text end

new text begin The 2008 appropriation includes $22,000 for 2007 and $215,000 for 2008.
new text end

new text begin The 2009 appropriation includes $23,000 for 2008 and $225,000 for 2009.
new text end

new text begin Subd. 5. new text end

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

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

	new text begin $ new text end	new text begin 106,521,000 new text end	new text begin ..... new text end	new text begin 2008 new text end
	new text begin $ new text end	new text begin 108,979,000 new text end	new text begin ..... new text end	new text begin 2009 new text end

new text begin The 2008 appropriation includes $34,970,000 for 2007 and $71,551,000 for 2008.
new text end

new text begin The 2009 appropriation includes $35,885,000 for 2008 and $73,094,000 for 2009.
new text end

new text begin Subd. 6. new text end

new text begin Transition for disabled students. new text end

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

new text begin $ new text end

new text begin 880,000 new text end

new text begin ..... new text end

new text begin 2008 new text end

new text begin The 2008 appropriation includes $880,000 for 2007 and $0 for 2008.
new text end

new text begin Subd. 7. new text end

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

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

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

new text begin Subd. 8. new text end

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

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

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

Sec. 14. new text begin REPEALER.
new text end

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

ARTICLE 4

FACILITIES AND TECHNOLOGY

Section 1.

Minnesota Statutes 2006, section 123B.53, subdivision 1, is amended to read:

Subdivision 1.

Definitions.

(a) For purposes of this section, the eligible debt service
revenue of a district is defined as follows:

(1) the amount needed to produce between five and six percent in excess of the
amount needed to meet when due the principal and interest payments on the obligations
of the district for eligible projects according to subdivision 2, including the amounts
necessary for repayment of energy loans according to section 216C.37 or sections 298.292
to 298.298, debt service loans and capital loans, lease purchase payments under section
126C.40, subdivision 2, alternative facilities levies under section 123B.59, subdivision
5, new text begin paragraph (a), new text end minus

(2) the amount of debt service excess levy reduction for that school year calculated
according to the procedure established by the commissioner.

(b) The obligations in this paragraph are excluded from eligible debt service revenue:

(1) obligations under section 123B.61;

(2) the part of debt service principal and interest paid from the taconite environmental
protection fund or Douglas J. Johnson economic protection trust;

(3) obligations issued under Laws 1991, chapter 265, article 5, section 18, as
amended by Laws 1992, chapter 499, article 5, section 24; and

(4) obligations under section 123B.62.

(c) For purposes of this section, if a preexisting school district reorganized under
sections 123A.35 to 123A.43, 123A.46, and 123A.48 is solely responsible for retirement
of the preexisting district's bonded indebtedness, capital loans or debt service loans, debt
service equalization aid must be computed separately for each of the preexisting districts.

(d) For purposes of this section, the adjusted net tax capacity determined according
to section 127A.48 shall be adjusted to include deleted text begin a portion of deleted text end the tax capacity of property
generally exempted from ad valorem taxes under section 272.02, deleted text begin subdivisions deleted text end new text begin subdivision new text end
64 deleted text begin and 65, equal to the product of that tax capacity times the ratio of the eligible debt
service revenue attributed to general obligation bonds to the total eligible debt service
revenue of the district deleted text end .

Sec. 2.

Minnesota Statutes 2006, section 123B.57, subdivision 3, is amended to read:

Subd. 3.

Health and safety revenue.

A district's health and safety revenue
for a fiscal year equals new text begin the district's alternative facilities levy under section 123B.59,
subdivision 5, paragraph (b), plus the greater of zero or new text end :

(1) the sum of (a) the total approved cost of the district's hazardous substance
plan for fiscal years 1985 through 1989, plus (b) the total approved cost of the district's
health and safety program for fiscal year 1990 through the fiscal year to which the levy
is attributable, excluding expenditures funded with bonds issued under section 123B.59
or 123B.62, or chapter 475; certificates of indebtedness or capital notes under section
123B.61; levies under section 123B.58, 123B.59, 123B.63, or 126C.40, subdivision 1 or
6; and other federal, state, or local revenues, minus

(2) the sum of (a) the district's total hazardous substance aid and levy for fiscal years
1985 through 1989 under sections 124.245 and 275.125, subdivision 11c, plus (b) the
district's health and safety revenue under this subdivision, for years before the fiscal year
to which the levy is attributable.

Sec. 3.

Minnesota Statutes 2006, section 272.02, subdivision 64, is amended to read:

Subd. 64.

Job opportunity building zone property.

(a) Improvements to real
property, and personal property, classified under section 273.13, subdivision 24, and
located within a job opportunity building zone, designated under section 469.314, are
exempt from ad valorem taxes levied under chapter 275.

(b) Improvements to real property, and tangible personal property, of an agricultural
production facility located within an agricultural processing facility zone, designated
under section 469.314, is exempt from ad valorem taxes levied under chapter 275.

(c) For property to qualify for exemption under paragraph (a), the occupant must be
a qualified business, as defined in section 469.310.

(d) The exemption applies beginning for the first assessment year after designation
of the job opportunity building zone by the commissioner of employment and economic
development. The exemption applies to each assessment year that begins during the
duration of the job opportunity building zone. To be exempt, the property must be
occupied by July 1 of the assessment year by a qualified business that has signed the
business subsidy agreement and relocation agreement, if required, by July 1 of the
assessment year. This exemption does not apply to:

(1) the levy under section 475.61 or similar levy provisions under any other law to
pay general obligation bonds; deleted text begin or
deleted text end

(2) new text begin other school district levies included in the debt service levy of the district under
section 123B.55; or
new text end

new text begin (3) new text end a levy under section 126C.17, if the levy was approved by the voters before the
designation of the job opportunity building zone.

Sec. 4. new text begin SCHOOL TECHNOLOGY GRANTS.
new text end

new text begin Subdivision 1. new text end

new text begin Program outcomes. new text end

new text begin The general framework outcomes for
technology use in kindergarten through grade 12 education are:
new text end

new text begin (1) development of policies and procedures that assure instructional resource
availability to help students successfully achieve education excellence and state standards;
new text end

new text begin (2) development of databases that are accessible within each district and on the
Internet;
new text end

new text begin (3) development of policies, procedures, and systems that stimulate and promote
teacher and student curriculum and learning collaboration; and
new text end

new text begin (4) development of uniform technology standards.
new text end

new text begin Subd. 2. new text end

new text begin Establishment; eligibility. new text end

new text begin To promote the outcomes of subdivision 1, a
program is established to support districts and charter schools in reaching these outcomes.
Districts and charter schools eligible to participate under this section must have an
approved district technology plan submitted to the commissioner. The commissioner shall
develop a competitive grant process for the purpose of determining recipients. Districts
and charter schools must propose to use the grant funds that support the outcomes
described in subdivision 1 in a manner that fulfills the following components in rank
order by:
new text end

new text begin (1) obtaining minimum statewide standards of technology infrastructure and
capacity;
new text end

new text begin (2) incorporating student technology content standards within the district curriculum
and the professional development necessary for effective instruction of those standards;
new text end

new text begin (3) developing data-driven decision-making models in the classroom, school, and
district; and
new text end

new text begin (4) developing innovation in student learning and teacher professional development.
new text end

new text begin Subd. 3. new text end

new text begin Application and review process; funding priority. new text end

new text begin Districts and charter
schools eligible under subdivision 2 may apply to the commissioner, in the form and
manner the commissioner determines, for competitive funding to achieve the four grant
goals. The application must identify, through a commonly-used technology audit process
that determines the district or charter school's current technology capabilities, the disparity
between the district or charter school's current technology infrastructure and capacity
and the minimum statewide standards that are established by the commissioner. The
application must detail the specific efforts the applicant intends to undertake to achieve
the components, consistent with subdivision 2, and a proposed budget detailing the
district or charter school's current and proposed expenditures. The proposed budget must
demonstrate that the applicant's efforts will support the four components of subdivision 2
in rank order. Expenditures for administration must not exceed five percent of the proposed
budget. The commissioner may require an applicant to provide additional information.
When reviewing applications, the commissioner must determine whether the applicant
satisfied all the requirements in this subdivision and subdivision 2. The commissioner
may give funding priority to an otherwise qualified applicant that demonstrates:
new text end

new text begin (1) previous attempts through district referenda or other funding mechanisms to
increase its technology infrastructure and capacity;
new text end

new text begin (2) previous efforts to participate in online field testing of statewide assessments; or
new text end

new text begin (3) an effective ability to actively involve local business and community
organizations in efforts to stimulate and promote teacher and student curriculum and
learning collaboration.
new text end

new text begin Subd. 4. new text end

new text begin Application review; grant awards. new text end

new text begin The commissioner shall award grants
to applicant school districts and charter schools that meet the requirements of subdivisions
1 and 2. The commissioner may award grants as funding allows and, to the extent feasible,
must distribute the grant awards on an equitable geographical basis. The commissioner
must base the amount of the grant award on the number of students in the participating
district or charter school. District expenditures of the grant proceeds must be consistent
with budget information the grantee periodically submits to the commissioner. School
districts and charter schools that submit an application and receive funding under this
section must use the funding, consistent with the components in subdivision 2, as stated
in the application. The commissioner may spend up to one percent of the appropriation
for administering the program.
new text end

new text begin Subd. 5. new text end

new text begin Annual reports. new text end

new text begin Each school district and charter school that receives a
grant under this section must demonstrate and measure the extent to which the district or
charter school achieved the outcomes set forth in the grant application and consistent with
subdivision 1. This report is due at the end of the grant period and must be submitted to the
commissioner in the form and manner the commissioner determines. The commissioner
must make summary data about this program available to the education policy and finance
committees of the legislature by February 15, 2010. Each school district and charter
school that receives a grant under this section annually must report to the commissioner,
consistent with the uniform financial accounting and reporting standards, its actual
expenditures for school technology funding. The report must demonstrate that the school
district or charter school has maintained its effort from other sources for technology and
capacity compared with the previous fiscal year, and the district or charter school has
expended all grant funds, consistent with its approved budget.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for fiscal years 2008 and 2009.
new text end

Sec. 5. new text begin ONLINE LEARNING EXPANSION GRANTS.
new text end

new text begin Subdivision 1. new text end

new text begin Outcomes. new text end

new text begin The general framework outcomes for expanding online
learning in education are:
new text end

new text begin (1) provide grant funding to encourage expansion and access to online learning
courses and opportunities for Minnesota students;
new text end

new text begin (2) expand academic opportunities, increase graduation rates, increase college
eligibility and preparedness, and provide online resources for remediation;
new text end

new text begin (3) increase the number of students successfully completing online courses; and
new text end

new text begin (4) develop innovative online courses or programming.
new text end

new text begin Subd. 2. new text end

new text begin Establishment; eligibility. new text end

new text begin To promote the outcomes of subdivision
1, a program is established to expand online learning courses and programs to school
districts, charter schools, consortiums of school districts, intermediate school districts,
service cooperatives, or higher education institutions. The commissioner shall develop
a competitive grant process for the purpose of determining recipients. Districts, charter
schools, consortiums of school districts, intermediate school districts, service cooperatives,
or higher education institutions must propose to use the grant funds that support the
outcomes of subdivision 1 in a manner that develops or expands online courses or
programs in one or more of the following areas:
new text end

new text begin (1) dual high school or postsecondary education credit;
new text end

new text begin (2) science, technology, engineering, and math fields;
new text end

new text begin (3) preadvanced placement, advanced placement, or international baccalaureate; and
new text end

new text begin (4) remediation efforts.
new text end

new text begin Subd. 3. new text end

new text begin Application and review process; funding priority. new text end

new text begin Districts, charter
schools, consortiums of school districts, service cooperatives, intermediate school
districts, or higher education institutions that are eligible under subdivision 2 may
apply to the commissioner, in the form and manner the commissioner determines, for
competitive funding to achieve the grant goals. The application must detail the specific
efforts the applicant intends to undertake to achieve the components, consistent with
subdivisions 1 and 2, and propose the budget detailing the district's, charter school's,
consortiums of school districts', intermediate districts', service cooperative's, or higher
education institution's current and proposed expenditures. The proposed budget must
demonstrate that the applicant's efforts will support the components of subdivisions 1 and
2. Expenditures for administration must not exceed five percent of the proposed budget.
The commissioner may require an applicant to provide additional information. When
reviewing applications, the commissioner must determine whether the applicant satisfied
all the requirements in this subdivision and subdivisions 1 and 2.
new text end

new text begin Subd. 4. new text end

new text begin Application review; grant awards. new text end

new text begin The commissioner shall award grants
to eligible applicants that meet the requirements of subdivisions 1 and 2.
new text end

new text begin The commissioner shall award grants as funding allows and, to the extent feasible,
must distribute the grant awards on an equitable geographical basis. The commissioner
must base the amount of the grant award on the number of students in the participating
district charter school, consortium of school districts, intermediate school, or higher
education institutions. Expenditures of the grant proceeds must be consistent with budget
information the grantee periodically submits to the commissioner. School districts and
charter schools that submit an application and receive funding under this section must
use the funding, consistent with the components in subdivisions 1 and 2 as stated in the
application. The commissioner may spend up to one percent of the appropriation for
administering the program.
new text end

new text begin Subd. 5. new text end

new text begin Annual reports. new text end

new text begin Each applicant that receives a grant under this section
must demonstrate and measure the extent to which the applicant achieved the outcomes set
forth in the grant application and consistent with subdivisions 1 and 2. This report is due
at the end of the grant period and must be submitted to the commissioner in the form and
manner the commissioner determines. The commissioner must make summary data about
this program available to the education policy and finance committees of the legislature by
February 15, 2010. Each applicant that receives a grant under this section must annually
report to the commissioner, consistent with the uniform financial accounting and reporting
standards, its actual expenditures for online learning courses.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for revenue for fiscal years 2008
and 2009.
new text end

Sec. 6. new text begin APPROPRIATIONS.
new text end

new text begin Subdivision 1. new text end

new text begin Department of Education. new text end

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

new text begin Subd. 2. new text end

new text begin Health and safety revenue. new text end

new text begin For health and safety aid according to
Minnesota Statutes, section 123B.57, subdivision 5:
new text end

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

new text begin The 2008 appropriation includes $20,000 for 2007 and $170,000 for 2008.
new text end

new text begin The 2009 appropriation includes $18,000 for 2008 and $161,000 for 2009.
new text end

new text begin Subd. 3. new text end

new text begin Debt service equalization. new text end

new text begin For debt service aid according to Minnesota
Statutes, section 123B.53, subdivision 6:
new text end

	new text begin $ new text end	new text begin 14,913,000 new text end	new text begin ..... new text end	new text begin 2008 new text end
	new text begin $ new text end	new text begin 11,783,000 new text end	new text begin ..... new text end	new text begin 2009 new text end

new text begin The 2008 appropriation includes $1,765,000 for 2007 and $13,148,000 for 2008.
new text end

new text begin The 2009 appropriation includes $1,460,000 for 2008 and $10,323,000 for 2009.
new text end

new text begin Subd. 4. new text end

new text begin Alternative facilities bonding aid. new text end

new text begin For alternative facilities bonding aid,
according to Minnesota Statutes, section 123B.59, subdivision 1:
new text end

	new text begin $ new text end	new text begin 19,287,000 new text end	new text begin ..... new text end	new text begin 2008 new text end
	new text begin $ new text end	new text begin 19,287,000 new text end	new text begin ..... new text end	new text begin 2009 new text end

new text begin The 2008 appropriation includes $1,928,000 for 2007 and $17,359,000 for 2008.
new text end

new text begin The 2009 appropriation includes $1,928,000 for 2008 and $17,359,000 for 2009.
new text end

new text begin Subd. 5. new text end

new text begin Equity in telecommunications access. new text end

new text begin For equity in telecommunications
access:
new text end

	new text begin $ new text end	new text begin 3,750,000 new text end	new text begin ..... new text end	new text begin 2008 new text end
	new text begin $ new text end	new text begin 3,750,000 new text end	new text begin ..... new text end	new text begin 2009 new text end

new text begin If the appropriation amount is insufficient, the commissioner shall reduce the
reimbursement rate in Minnesota Statutes, section 125B.26, subdivisions 4 and 5, and the
revenue for fiscal years 2008 and 2009 shall be prorated.
new text end

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

new text begin Subd. 6. new text end

new text begin School technology grants. new text end

new text begin For school technology grants under section 4:
new text end

	new text begin $ new text end	new text begin 16,500,000 new text end	new text begin ..... new text end	new text begin 2008 new text end
	new text begin $ new text end	new text begin 16,500,000 new text end	new text begin ..... new text end	new text begin 2009 new text end

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

new text begin Subd. 7. new text end

new text begin Deferred maintenance aid. new text end

new text begin For deferred maintenance aid, according to
Minnesota Statutes, section 123B.591, subdivision 4:
new text end

	new text begin $ new text end	new text begin 3,402,000 new text end	new text begin ..... new text end	new text begin 2008 new text end
	new text begin $ new text end	new text begin 2,712,000 new text end	new text begin ..... new text end	new text begin 2009 new text end

new text begin The 2008 appropriation includes $0 for 2007 and $3,402,000 for 2008.
new text end

new text begin The 2009 appropriation includes $378,000 for 2008 and $2,334,000 for 2009.
new text end

new text begin Subd. 8. new text end

new text begin Online learning grants. new text end

new text begin For online learning grants:
new text end

	new text begin $ new text end	new text begin 2,500,000 new text end	new text begin ..... new text end	new text begin 2008 new text end
	new text begin $ new text end	new text begin 2,500,000 new text end	new text begin ..... new text end	new text begin 2009 new text end

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

new text begin Subd. 9. new text end

new text begin Rocori school district. new text end

new text begin For Rocori school district for Project Serv:
new text end

new text begin $ new text end

new text begin 53,000 new text end

new text begin ..... new text end

new text begin 2008 new text end

ARTICLE 5

NUTRITION AND ACCOUNTING

Section 1.

Minnesota Statutes 2006, section 123B.10, subdivision 1, is amended to read:

Subdivision 1.

Budgets.

new text begin (a) For the purposes of this subdivision:
new text end

new text begin (1) "direct classroom expenditures" are instructional expenditures under the uniform
financial accounting and reporting standards (UFARS), excluding tuition payments to
other Minnesota school districts, capital expenditures, and expenditures for athletics, other
cocurricular activities, and extracurricular activities; and
new text end

new text begin (2) "total K-12 general operating expenditures" are the total general fund
expenditures for kindergarten through grade 12 under UFARS, excluding tuition payments
to other Minnesota school districts, pupil transportation expenditures, and capital
expenditures.
new text end

new text begin (b) Every board must formally adopt, and may formally revise, a minimum percent
of total K-12 general operating expenditures that the board annually will allocate to direct
classroom expenditures. Every board must evaluate its allocation on an ongoing basis to
determine whether district expenditures are aligned with the district's academic goals.
new text end

new text begin (c) new text end Every board must publish revenue and expenditure budgets for the current year
and the actual revenues, expenditures, fund balances for the prior year and projected fund
balances for the current year in a form prescribed by the commissioner within one week
of the acceptance of the final audit by the board, or November 30, whichever is earlier.
new text begin The report must clearly show the percent of a district's total K-12 general operating
expenditures that is allocated to direct classroom expenditures. new text end The forms prescribed must
be designed so that year to year comparisons of revenue, expenditures and fund balances
can be made. These budgets, reports of revenue, expenditures and fund balances must be
published in a qualified newspaper of general circulation in the district or on the district's
official Web site. If published on the district's official Web site, the district must also
publish an announcement in a qualified newspaper of general circulation in the district that
includes the Internet address where the information has been posted.

Sec. 2. new text begin APPROPRIATIONS.
new text end

new text begin Subdivision 1. new text end

new text begin Department of Education. new text end

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

new text begin Subd. 2. new text end

new text begin School lunch. new text end

new text begin For school lunch aid according to Minnesota Statutes,
section 124D.111, and Code of Federal Regulations, title 7, section 210.17:
new text end

	new text begin $ new text end	new text begin 10,516,000 new text end	new text begin ..... new text end	new text begin 2008 new text end
	new text begin $ new text end	new text begin 10,642,000 new text end	new text begin ..... new text end	new text begin 2009 new text end

new text begin Subd. 3. new text end

new text begin Traditional school breakfast; kindergarten milk. new text end

new text begin For traditional school
breakfast aid and kindergarten milk under Minnesota Statutes, sections 124D.1158 and
124D.118:
new text end

	new text begin $ new text end	new text begin 5,400,000 new text end	new text begin ..... new text end	new text begin 2008 new text end
	new text begin $ new text end	new text begin 5,515,000 new text end	new text begin ..... new text end	new text begin 2009 new text end

new text begin Subd. 4. new text end

new text begin Summer school service replacement aid. new text end

new text begin For summer food service
replacement aid under Minnesota Statutes, section 124D.119:
new text end

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

ARTICLE 6

LIBRARIES

Section 1. new text begin COMPREHENSIVE LIBRARY STRUCTURE STUDY.
new text end

new text begin The commissioner of education must contract with an independent consultant that
has extensive experience working with libraries to evaluate the structure of the library
system and services provided by Minnesota libraries that receive public funding. The
study must include all types of libraries in the state such as academic, government, special,
school, and public libraries, including collaborative entities such as MINITEX and state
library services. The consultant must:
new text end

new text begin (1) conduct an in-depth analysis of the current library system structure and services,
identifying best practices, duplication of services, and opportunities to improve efficiency;
and
new text end

new text begin (2) prepare a report to be submitted to the Department of Education, documenting
and reporting findings, and recommending, where necessary, changes to increase
efficiency and cooperation in the delivery of service and use of public funds.
new text end

new text begin The commissioner must report the findings of the study to the legislative committees
having jurisdiction over kindergarten through grade 12 finance before January 15, 2009,
and shall recommend any required changes in statute that will result in a more streamlined
and efficient library structure.
new text end

Sec. 2. new text begin DEPARTMENT OF EDUCATION; LIBRARY APPROPRIATIONS.
new text end

new text begin Subdivision 1. new text end

new text begin Department of Education. new text end

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

new text begin Subd. 2. new text end

new text begin Basic system support. new text end

new text begin For basic system support grants under Minnesota
Statutes, section 134.355:
new text end

	new text begin $ new text end	new text begin 8,725,000 new text end	new text begin ..... new text end	new text begin 2008 new text end
	new text begin $ new text end	new text begin 8,900,000 new text end	new text begin ..... new text end	new text begin 2009 new text end

new text begin The 2008 appropriation includes $857,000 for 2007 and $7,868,000 for 2008.
new text end

new text begin The 2009 appropriation includes $874,000 for 2008 and $8,026,000 for 2009.
new text end

new text begin Subd. 3. new text end

new text begin Multicounty, multitype library systems. new text end

new text begin For grants under Minnesota
Statutes, sections 134.353 and 134.354, to multicounty, multitype library systems:
new text end

	new text begin $ new text end	new text begin 903,000 new text end	new text begin ..... new text end	new text begin 2008 new text end
	new text begin $ new text end	new text begin 903,000 new text end	new text begin ..... new text end	new text begin 2009 new text end

new text begin The 2008 appropriation includes $90,000 for 2007 and $813,000 for 2008.
new text end

new text begin The 2009 appropriation includes $90,000 for 2008 and $813,000 for 2009.
new text end

new text begin Subd. 4. new text end

new text begin Electronic library for Minnesota. new text end

new text begin For statewide licenses to online
databases selected in cooperation with the Minnesota Office of Higher Education for
school media centers, public libraries, state government agency libraries, and public
or private college or university libraries:
new text end

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

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

new text begin Subd. 5. new text end

new text begin Regional library telecommunications aid. new text end

new text begin For regional library
telecommunications aid under Minnesota Statutes, section 134.355:
new text end

	new text begin $ new text end	new text begin 1,200,000 new text end	new text begin ..... new text end	new text begin 2008 new text end
	new text begin $ new text end	new text begin 1,200,000 new text end	new text begin ..... new text end	new text begin 2009 new text end

new text begin The 2008 appropriation includes $120,000 for 2007 and $1,080,000 for 2008.
new text end

new text begin The 2009 appropriation includes $120,000 for 2008 and $1,080,000 for 2009.
new text end

new text begin Subd. 6. new text end

new text begin Comprehensive library study contract. new text end

new text begin For a contract to examine
Minnesota's library structure under section 1:
new text end

new text begin $ new text end

new text begin 200,000 new text end

new text begin ..... new text end

new text begin 2008 new text end

new text begin This appropriation is available through June 30, 2009. This is a onetime
appropriation.
new text end

ARTICLE 7

EARLY CHILDHOOD EDUCATION

Section 1.

Minnesota Statutes 2006, section 124D.13, subdivision 1, is amended to
read:

Subdivision 1.

Establishment new text begin ; purpose new text end .

A district that provides a community
education program under sections 124D.18 and 124D.19 may establish an early childhood
family education program. Two or more districts, each of which provides a community
education program, may cooperate to jointly provide an early childhood family education
program. new text begin The purpose of the early childhood family education program is to provide
parenting education to support children's learning and development. new text end

Sec. 2.

Minnesota Statutes 2006, section 124D.13, subdivision 2, is amended to read:

Subd. 2.

Program deleted text begin characteristics deleted text end new text begin requirements new text end .

(a) Early childhood family
education programs are programs for children in the period of life from birth to
kindergarten, for the parents and other relatives of these children, and for expectant
parents. To the extent that funds are insufficient to provide programs for all children,
early childhood family education programs should emphasize programming for a child
from birth to age three and encourage parents and other relatives to involve four- and
five-year-old children in school readiness programs, and other public and nonpublic early
learning programs. new text begin A district may not limit participation to school district residents. new text end Early
childhood family education programs deleted text begin may include the following deleted text end new text begin must provide new text end :

(1) programs to educate parents and other relatives about the physical, mental,
and emotional development of children;

(2) deleted text begin programs to enhance the skills of parents and other relatives in providing for their
children's learning and development deleted text end new text begin structured learning activities requiring interaction
between children and their parents or relatives new text end ;

(3) new text begin structured new text end learning deleted text begin experiences deleted text end new text begin activities new text end for children deleted text begin and parents and other
relatives deleted text end that promote children's development new text begin and positive interaction with peers, which
are held while parents or relatives attend parent education classes new text end ;

deleted text begin (4) activities designed to detect children's physical, mental, emotional, or behavioral
problems that may cause learning problems;
deleted text end

deleted text begin (5) activities and materials designed to encourage self-esteem, skills, and behavior
that prevent sexual and other interpersonal violence;
deleted text end

deleted text begin (6) educational materials which may be borrowed for home use;
deleted text end

deleted text begin (7) deleted text end new text begin (4) new text end information on related community resources;

deleted text begin (8) programs to prevent deleted text end new text begin (5) information, materials, and activities that support the
safety of children, including prevention of new text end child abuse and neglect; new text begin and
new text end

deleted text begin (9) other programs or activities to improve the health, development, and school
readiness of children; or
deleted text end

deleted text begin (10) activities designed to maximize development during infancy.
deleted text end

new text begin (6) a community outreach plan to ensure participation by families who reflect the
racial, cultural, and economic diversity of the school district.
new text end

The programs must not include activities for children that do not require substantial
involvement of the children's parents or other relatives. The deleted text begin programs deleted text end new text begin program new text end must be
reviewed periodically to assure the instruction and materials are not racially, culturally, or
sexually biased. The programs must encourage parents to be aware of practices that may
affect equitable development of children.

(b) For the purposes of this section, "relative" or "relatives" means noncustodial
grandparents or other persons related to a child by blood, marriage, adoption, or foster
placement, excluding parents.

Sec. 3.

Minnesota Statutes 2006, section 124D.13, is amended by adding a subdivision
to read:

new text begin Subd. 13. new text end

new text begin Plan and program data submission requirements. new text end

new text begin (a) An early
childhood family education program must submit a biennial plan addressing the
requirements of subdivision 3 for approval by the commissioner. The plan must also
describe how the program provides parenting education and ensures participation of
families representative of the school district. A school district must submit the plan for
approval by the commissioner in the form and manner prescribed by the commissioner.
One-half of districts, as determined by the commissioner, must first submit a biennial plan
by April 1, 2009, and the remaining districts must first submit a plan by April 1, 2010.
new text end

new text begin (b) Districts receiving early childhood family education revenue under section
124D.135 must submit annual program data to the department by July 15 in the form and
manner prescribed by the commissioner.
new text end

new text begin (c) Beginning with levies for fiscal year 2011, a school district must submit its annual
program data to the department before it may certify a levy under section 124D.135.
Districts selected by the commissioner to submit a biennial plan by April 1, 2010, must
also have an approved plan on file with the commissioner before certifying a levy under
section 124D.135 for fiscal year 2011. Beginning with levies for fiscal year 2012, all
districts must submit annual program data and have an approved biennial plan on file with
the commissioner before certifying a levy under section 124D.135.
new text end

Sec. 4.

Minnesota Statutes 2006, section 124D.135, subdivision 3, is amended to read:

Subd. 3.

Early childhood family education levy.

deleted text begin For fiscal year 2001 to obtain
early childhood family education revenue, a district may levy an amount equal to the tax
rate of .5282 percent times the adjusted tax capacity of the district for the year preceding
the year the levy is certified. Beginning with levies for fiscal year 2002, deleted text end By September
30 of each year, the commissioner shall establish a tax rate for early childhood new text begin family new text end
education revenue that raises deleted text begin $21,027,000 for fiscal year 2002 and deleted text end $22,135,000 in new text begin each new text end
fiscal year deleted text begin 2003 and each subsequent year deleted text end . If the amount of the early childhood family
education levy would exceed the early childhood family education revenue, the early
childhood family education levy must equal the early childhood family education revenue. new text begin
Beginning with levies for fiscal year 2011, a district may not certify an early childhood
family education levy unless it has met the annual program data reporting and biennial
plan requirements under section 124D.13, subdivision 13.
new text end

Sec. 5.

Minnesota Statutes 2006, section 124D.135, subdivision 5, is amended to read:

Subd. 5.

Use of revenue restricted.

Early childhood family education revenue may
be used only for early childhood family education programs.

new text begin (a) new text end Not more than five percent of early childhood family education revenue, as
defined in subdivision 7, may be used to administer early childhood family education
programs.

new text begin (b) An early childhood family education program may use up to ten percent of its
early childhood family education revenue as defined in subdivision 1, including revenue
from participant fees, for equipment that is used in the early childhood family education
program. This revenue may only be used for the following purposes:
new text end

new text begin (1) to purchase or lease computers and related materials; and
new text end

new text begin (2) to purchase or lease equipment for instruction for participating children and
their families.
new text end

new text begin If a district anticipates an unusual circumstance requiring its early childhood family
education program capital expenditures to exceed the ten percent limitation, prior approval
to exceed the limit must be obtained in writing from the commissioner.
new text end

Sec. 6.

Minnesota Statutes 2006, section 124D.135, subdivision 6, is amended to read:

Subd. 6.

Home visiting levy.

A district that new text begin is eligible to levy for early childhood
family education under subdivision 3 and that new text end enters into a collaborative agreement to
provide education services and social services to families with young children may levy
an amount equal to $1.60 times the number of people under five years of age residing in
the district on September 1 of the last school year. Levy revenue under this subdivision
must not be included as revenue under subdivision 1. The revenue must be used for home
visiting programs under section 124D.13, subdivision 4.

Sec. 7.

new text begin [124D.163] TARGETED TRAINING OF EARLY CHILDHOOD
PROFESSIONALS TO IMPROVE SCHOOL READINESS.
new text end

new text begin Subdivision 1. new text end

new text begin Establishment; purpose. new text end

new text begin The commissioner of education shall
provide a training program for the purpose of improving the school readiness of
prekindergarten children.
new text end

new text begin Subd. 2. new text end

new text begin Eligible participants. new text end

new text begin The training program is available to all staff in
school readiness programs as defined in section 124D.15, Head Start programs as defined
in section 119A.50, and child care centers as defined in chapter 245A. The commissioner
of education shall consult with the commissioner of human services to identify child care
center program participants and implement the training program for child care center
program participants.
new text end

new text begin Subd. 3. new text end

new text begin Training content. new text end

new text begin The commissioner shall develop three foundational
and sequential training modules on child observation, child and program assessment,
and curriculum planning.
new text end

new text begin Subd. 4. new text end

new text begin Availability. new text end

new text begin To the extent practical, the training will be made available
throughout the state on an ongoing basis. In addition to the geographic availability, the
commissioner must consider the availability of training to meet the needs of diverse
cultural groups. Training materials may be translated and training may be delivered in
other languages as determined by the commissioner. The training may be provided
through a variety of methods that may include on-site and Web-based delivery.
new text end

Sec. 8.

new text begin [124D.164] IMPROVE EDUCATIONAL OFFERINGS IN SCHOOL
READINESS, HEAD START, AND CHILD CARE PROGRAMS.
new text end

new text begin Subdivision 1. new text end

new text begin Establishment; purpose. new text end

new text begin A program is established to improve the
educational offerings in school readiness, Head Start, and licensed child care programs.
new text end

new text begin Subd. 2. new text end

new text begin Recipients of services. new text end

new text begin A recipient of services must be a:
new text end

new text begin (1) licensed child care center as defined in chapter 245A that is eligible to participate
in the federal Child and Adult Care Food Program;
new text end

new text begin (2) federally designated Head Start program as defined in section 119A.50; or
new text end

new text begin (3) a school readiness program as defined in section 124D.15 with at least 25 percent
of the children served in the program qualifying for free and reduced price lunch.
new text end

new text begin Subd. 3. new text end

new text begin Required program components. new text end

new text begin A school district receiving funds under
this section must provide the following services to the designated recipients of services
identified in its application:
new text end

new text begin (1) compensatory instruction that accelerates children's literacy and language
development and mathematical thinking; and
new text end

new text begin (2) ongoing assessment of children's progress aligned with early learning guidelines.
The compensatory instruction must be provided by a public school teacher with a valid
early childhood license for at least three hours per day for four days per week for children
in the year prior to kindergarten entrance. Funds cannot be used to supplant existing
school readiness expenditures authorized under section 124D.16.
new text end

new text begin Subd. 4. new text end

new text begin Application process and requirements. new text end

new text begin (a) A district must submit an
application to the commissioner of education in the form and manner prescribed by the
commissioner.
new text end

new text begin (b) The application must include a plan that:
new text end

new text begin (1) identifies the program sites where services will be provided;
new text end

new text begin (2) provides for instructional content and activities of sufficient length and intensity
to address learning needs of children most at risk of not being fully prepared for
kindergarten;
new text end

new text begin (3) provides for instruction that accelerates literacy and language development
and mathematical thinking;
new text end

new text begin (4) integrates the language, literacy, and mathematical learning components with
ongoing program curriculum; and
new text end

new text begin (5) incorporates formal and ongoing assessment of children's progress aligned to
early learning guidelines at program entrance and at program exit.
new text end

new text begin Subd. 5. new text end

new text begin Selection and award. new text end

new text begin When reviewing an application, the commissioner
of education must determine whether all the requirements of subdivision 4 are met. The
commissioner must consider geographical distribution of funds, as well as a distribution
of funds that reflects the cultural diversity of the service area. The commissioner of
education will consult with the commissioner of human services in the development and
implementation of the application review and award process. Programs receiving awards
under this section are eligible for continued funding if program requirements are met
according to the standards established by the commissioner of education and funds are
appropriated.
new text end

Sec. 9.

new text begin [124D.165] EARLY CHILDHOOD SCHOLARSHIPS.
new text end

new text begin Subdivision 1. new text end

new text begin Purpose. new text end

new text begin The commissioner must establish an early childhood
scholarship fund to improve the school readiness of prekindergarten children at risk
of being unprepared for kindergarten. Scholarships are available for the purpose of
participating in an approved program as specified in subdivision 4 the year prior to
kindergarten entrance.
new text end

new text begin Subd. 2. new text end

new text begin Eligibility. new text end

new text begin A parent or legal guardian of a four-year-old child with a
household income that does not exceed 180 percent of the federal poverty guidelines,
adjusted for family size, is eligible to apply for an annual scholarship of up to $4,000 for
each eligible child.
new text end

new text begin Subd. 3. new text end

new text begin Scholarship application, award, and process. new text end

new text begin Parents or guardians
meeting the eligibility requirements defined in subdivision 2 may apply for a scholarship
certificate. Application must be made according to the form and manner prescribed by the
commissioner. The certificates must be redeemable for instruction at an approved early
childhood program, as specified in subdivision 4, for up to one year from the date of
issue or until the child for whom the scholarship is designated enrolls in kindergarten,
whichever occurs first. The commissioner shall annually award scholarship certificates to
eligible applicants in the order applications are received until all funds available for the
year have been obligated. Recipients may not transfer a scholarship certificate to another
person. The parent or guardian may transfer the scholarship certificate to another approved
early childhood program according to requirements established by the commissioner.
new text end

new text begin Subd. 4. new text end

new text begin Program approval. new text end

new text begin A program must be approved by the commissioner
to be eligible to receive state early childhood scholarship program funds on behalf of
an enrolled scholarship certificate recipient. Early childhood programs must apply for
approval in the form and manner prescribed by the commissioner and must be:
new text end

new text begin (1) a federally designated Head Start program as defined in section 119A.50;
new text end

new text begin (2) a school readiness program as defined in section 124D.15; or
new text end

new text begin (3) a licensed child care program as defined in chapter 245A.
new text end

new text begin The application must include evidence that the program provides research-based
instruction to support school readiness. Programs must submit any program changes
related to approval as they occur and must reapply for approval every three years.
new text end

new text begin Subd. 5. new text end

new text begin Payments to approved programs. new text end

new text begin The commissioner shall issue
payments of scholarship funds on a reimbursement basis to approved programs as defined
in subdivision 4 for services provided that are comparable to service costs for program
participants who do not receive a scholarship. Scholarship funds may not be used for
services that are available at no cost to nonscholarship recipient families. Approved
programs must maintain documentation of services provided and the commissioner shall
verify information submitted by approved programs to ensure appropriate services were
provided to eligible recipients for whom state early childhood scholarship funds are paid.
Scholarship funds awarded to families receiving other forms of assistance, such as child
care assistance, must be used to supplement and may not be used to supplant services
provided through that assistance.
new text end

new text begin Subd. 6. new text end

new text begin Scholarship not income for purposes of other publicly funded
programs. new text end

new text begin Notwithstanding any law to the contrary, the receipt of a scholarship does not
count as earned income for the purposes of medical assistance, MinnesotaCare, MFIP,
child care assistance, or Head Start programs.
new text end

Sec. 10. new text begin APPROPRIATIONS.
new text end

new text begin Subdivision 1. new text end

new text begin Department of Education. new text end

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

new text begin Subd. 2. new text end

new text begin School readiness. new text end

new text begin For revenue for school readiness programs under
Minnesota Statutes, sections 124D.15 and 124D.16:
new text end

	new text begin $ new text end	new text begin 9,095,000 new text end	new text begin ..... new text end	new text begin 2008 new text end
	new text begin $ new text end	new text begin 9,095,000 new text end	new text begin ..... new text end	new text begin 2009 new text end

new text begin The 2008 appropriation includes $909,000 for 2007 and $8,186,000 for 2008.
new text end

new text begin The 2009 appropriation includes $909,000 for 2008 and $8,186,000 for 2009.
new text end

new text begin Subd. 3. new text end

new text begin Early childhood family education aid. new text end

new text begin For early childhood family
education aid under Minnesota Statutes, section 124D.135:
new text end

	new text begin $ new text end	new text begin 18,442,000 new text end	new text begin ..... new text end	new text begin 2008 new text end
	new text begin $ new text end	new text begin 18,871,000 new text end	new text begin ..... new text end	new text begin 2009 new text end

new text begin The 2008 appropriation includes $1,801,000 for 2007 and $16,641,000 for 2008.
new text end

new text begin The 2009 appropriation includes $1,849,000 for 2008 and $17,022,000 for 2009.
new text end

new text begin Subd. 4. new text end

new text begin Health and developmental screening aid. new text end

new text begin For health and developmental
screening aid under Minnesota Statutes, sections 121A.17 and 121A.19:
new text end

	new text begin $ new text end	new text begin 3,207,000 new text end	new text begin ..... new text end	new text begin 2008 new text end
	new text begin $ new text end	new text begin 3,371,000 new text end	new text begin ..... new text end	new text begin 2009 new text end

new text begin The 2008 appropriation includes $293,000 for 2007 and $2,914,000 for 2008.
new text end

new text begin The 2009 appropriation includes $323,000 for 2008 and $3,048,000 for 2009.
new text end

new text begin Subd. 5. new text end

new text begin Head Start program. new text end

new text begin For Head Start programs under Minnesota Statutes,
section 119A.52:
new text end

	new text begin $ new text end	new text begin 19,100,000 new text end	new text begin ..... new text end	new text begin 2008 new text end
	new text begin $ new text end	new text begin 19,100,000 new text end	new text begin ..... new text end	new text begin 2009 new text end

new text begin Subd. 6. new text end

new text begin Educate parents partnership. new text end

new text begin For the educate parents partnership under
Minnesota Statutes, section 124D.129:
new text end

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

new text begin Subd. 7. new text end

new text begin Kindergarten entrance assessment initiative and intervention
program. new text end

new text begin For the kindergarten entrance assessment initiative and intervention program
under Minnesota Statutes, section 124D.162:
new text end

	new text begin $ new text end	new text begin 287,000 new text end	new text begin ..... new text end	new text begin 2008 new text end
	new text begin $ new text end	new text begin 287,000 new text end	new text begin ..... new text end	new text begin 2009 new text end

new text begin Subd. 8. new text end

new text begin Early childhood Part C. new text end

new text begin For the expansion of early childhood Part C
services:
new text end

new text begin $ new text end

new text begin 102,000 new text end

new text begin ..... new text end

new text begin 2008 new text end

new text begin This appropriation includes $102,000 for 2007 and $0 for 2008.
new text end

new text begin Subd. 9. new text end

new text begin Early childhood family education program accountability initiative.
new text end

new text begin For the implementation of the early childhood family education program accountability
initiative under Minnesota Statutes, section 124D.135:
new text end

	new text begin $ new text end	new text begin 211,000 new text end	new text begin ..... new text end	new text begin 2008 new text end
	new text begin $ new text end	new text begin 196,000 new text end	new text begin ..... new text end	new text begin 2009 new text end

new text begin Any balance in the first year does not cancel but is available in the second year. The
base for this program in fiscal year 2010 and later is $196,000.
new text end

new text begin Subd. 10. new text end

new text begin Targeted training of early childhood professionals. new text end

new text begin For the targeted
training of early childhood professionals under Minnesota Statutes, section 124D.163:
new text end

	new text begin $ new text end	new text begin 155,000 new text end	new text begin ..... new text end	new text begin 2008 new text end
	new text begin $ new text end	new text begin 70,000 new text end	new text begin ..... new text end	new text begin 2009 new text end

new text begin Any balance in the first year does not cancel but is available in the second year. The
base for this program in fiscal year 2010 and later is $70,000.
new text end

new text begin Subd. 11. new text end

new text begin Improve educational components in school readiness, Head Start,
and child care programs. new text end

new text begin For the educational components program under Minnesota
Statutes, section 124D.164:
new text end

	new text begin $ new text end	new text begin 4,183,000 new text end	new text begin ..... new text end	new text begin 2008 new text end
	new text begin $ new text end	new text begin 4,183,000 new text end	new text begin ..... new text end	new text begin 2009 new text end

new text begin Of this amount, $172,500 is to administer the grant program. Any balance in the first
year does not cancel but is available in the second year.
new text end

new text begin Subd. 12. new text end

new text begin Early childhood scholarship program. new text end

new text begin For the early childhood
scholarship program under Minnesota Statutes, section 124D.165:
new text end

	new text begin $ new text end	new text begin 392,000 new text end	new text begin ..... new text end	new text begin 2008 new text end
	new text begin $ new text end	new text begin 28,509,000 new text end	new text begin ..... new text end	new text begin 2009 new text end

new text begin Of these amounts, $392,000 in fiscal year 2008 and $342,000 in fiscal year 2009
are to administer the scholarship program.
new text end

new text begin Any balance in the first year does not cancel but is available in the second year.
The base for this program in fiscal year 2010 and later is $28,509,000. Of this amount,
$342,000 is to administer the scholarship program.
new text end

ARTICLE 8

PREVENTION

Section 1. new text begin APPROPRIATION.
new text end

new text begin Subdivision 1. new text end

new text begin Department of Education. new text end

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

new text begin Subd. 2. new text end

new text begin Community education aid. new text end

new text begin For community education aid under
Minnesota Statutes, section 124D.20:
new text end

	new text begin $ new text end	new text begin 1,299,000 new text end	new text begin ..... new text end	new text begin 2008 new text end
	new text begin $ new text end	new text begin 797,000 new text end	new text begin ..... new text end	new text begin 2009 new text end

new text begin The 2008 appropriation includes $195,000 for 2007 and $1,104,000 for 2008.
new text end

new text begin The 2009 appropriation included $122,000 for 2008 and $675,000 for 2009.
new text end

new text begin Subd. 3. new text end

new text begin Adults with disabilities program aid. new text end

new text begin For adults with disabilities
programs under Minnesota Statutes, section 124D.56:
new text end

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

new text begin The 2008 appropriation includes $71,000 for 2007 and $639,000 for 2008.
new text end

new text begin The 2009 appropriation includes $71,000 for 2008 and $639,000 for 2009.
new text end

new text begin Subd. 4. new text end

new text begin Hearing-impaired adults. new text end

new text begin For programs for hearing-impaired adults
under Minnesota Statutes, section 124D.57:
new text end

	new text begin $ new text end	new text begin 70,000 new text end	new text begin ..... new text end	new text begin 2008 new text end
	new text begin $ new text end	new text begin 70,000 new text end	new text begin ..... new text end	new text begin 2009 new text end

new text begin Subd. 5. new text end

new text begin School-age care revenue. new text end

new text begin For extended day aid under Minnesota Statutes,
section 124D.22:
new text end

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

new text begin The 2008 appropriation includes $0 for 2007 and $1,000 for 2008.
new text end

new text begin The 2009 appropriation includes $0 for 2008 and $1,000 for 2009.
new text end

ARTICLE 9

SELF-SUFFICIENCY AND LIFELONG LEARNING

Section 1.

new text begin [119A.60] MINNESOTA FATHERHOOD LEADERSHIP INITIATIVE.
new text end

new text begin Subdivision 1. new text end

new text begin Establishment; purpose. new text end

new text begin The Minnesota fatherhood leadership
initiative is established to strengthen the relationship of fathers to their children and
enhance responsible parenting across the state by improving and expanding fatherhood
services.
new text end

new text begin Subd. 2. new text end

new text begin Program components. new text end

new text begin The commissioner of education shall establish
a program that includes community access grants, a fatherhood leadership certificate
program and technical assistance, training and resources for programs receiving
community access grants, and other programs working in coordination with the Minnesota
Fathers and Families Network.
new text end

new text begin (a) Faith and community organizations may apply in the form and manner prescribed
by the commissioner for innovative community access grants for fatherhood initiatives
that include the following:
new text end

new text begin (1) parenting and coparenting;
new text end

new text begin (2) family law, child access, and parenting time services;
new text end

new text begin (3) multiservice programming to address barriers in employment, education, health,
and mental health; and
new text end

new text begin (4) on-site technical assistance and training.
new text end

new text begin Community access grant recipients must participate in the evaluation described in
subdivision 3 and enroll a minimum of one staff member in the fatherhood leadership
certification program.
new text end

new text begin (b) The commissioner shall fund one program to provide intensive year-long training
through a fatherhood leadership certificate program. The program must include:
new text end

new text begin (1) participant pairing with a professional mentor;
new text end

new text begin (2) graduate credits to participants;
new text end

new text begin (3) curriculum developed by the advisory committee identified in subdivision 4; and
new text end

new text begin (4) a program Web site.
new text end

new text begin (c) The Minnesota Fathers and Families Network shall receive funding to provide
program coordination, recruitment, technical assistance, training, and resource materials
to partner organizations and organizations receiving community access grants.
new text end

new text begin Subd. 3. new text end

new text begin Evaluation. new text end

new text begin An evaluation of each of the components of subdivision 2
must be completed by an independent evaluator.
new text end

new text begin Subd. 4. new text end

new text begin Advisory committee. new text end

new text begin An advisory committee comprised of representatives
from the department, the Minnesota Fathers and Families Network, the Governor's
Council on Faith and Community Service Initiatives, and other appropriate members must
be established by the commissioner of education for the purpose of:
new text end

new text begin (1) reviewing applications and selecting recipients of community access grants;
new text end

new text begin (2) developing the fatherhood leadership certificate program curriculum; and
new text end

new text begin (3) advising on technical assistance, training, and support.
new text end

Sec. 2. new text begin APPROPRIATIONS.
new text end

new text begin Subdivision 1. new text end

new text begin Department of Education. new text end

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

new text begin Subd. 2. new text end

new text begin Adult basic education aid. new text end

new text begin For adult basic education aid under Minnesota
Statutes:
new text end

	new text begin $ new text end	new text begin 37,486,000 new text end	new text begin ..... new text end	new text begin 2007 new text end
	new text begin $ new text end	new text begin 38,646,000 new text end	new text begin ..... new text end	new text begin 2008 new text end
	new text begin $ new text end	new text begin 39,807,000 new text end	new text begin ..... new text end	new text begin 2009 new text end

new text begin The 2007 appropriation includes $3,654,000 for 2006 and $33,832,000 for 2007.
new text end

new text begin The 2008 appropriation includes $3,759,000 for 2007 and $34,887,000 for 2008.
new text end

new text begin The 2009 appropriation includes $3,876,000 for 2008 and $35,931,000 for 2009.
new text end

new text begin Subd. 3. new text end

new text begin GED tests. new text end

new text begin For payment of 60 percent of the costs of GED tests under
Laws 1993, chapter 224, article 4, section 44, subdivision 10:
new text end

	new text begin $ new text end	new text begin 125,000 new text end	new text begin ..... new text end	new text begin 2008 new text end
	new text begin $ new text end	new text begin 125,000 new text end	new text begin ..... new text end	new text begin 2009 new text end

new text begin Subd. 4. new text end

new text begin Lead hazard reduction. new text end

new text begin For lead hazard reduction under Minnesota
Statutes, section 144.9512:
new text end

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

new text begin The commissioner of education may transfer this appropriation to the commissioner
of health.
new text end

new text begin Subd. 5. new text end

new text begin Adult literacy grants for recent immigrants. new text end

new text begin For adult literacy grants for
recent immigrants to Minnesota under Laws 2006, chapter 282, article 2, section 26:
new text end

new text begin $ new text end

new text begin 1,250,000 new text end

new text begin ..... new text end

new text begin 2008 new text end

new text begin EFFECTIVE DATE. new text end

new text begin Subdivision 2 is effective the day following final enactment.
new text end

Sec. 3. new text begin APPROPRIATIONS; TANF.
new text end

new text begin Subdivision 1. new text end

new text begin Department of Education. new text end

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

new text begin Subd. 2. new text end

new text begin Minnesota fatherhood leadership initiative programs. new text end

new text begin For the
fatherhood leadership initiative program under Minnesota Statutes, section 124D.235:
new text end

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

new text begin Of this amount, $50,000 is available each year to conduct the evaluation, coordinate
the program, support the advisory committee, and administer the program.
new text end

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

ARTICLE 10

STATE AGENCIES

Section 1.

Minnesota Statutes 2006, section 517.08, subdivision 1c, is amended to read:

Subd. 1c.

Disposition of license fee.

(a) Of the marriage license fee collected
pursuant to subdivision 1b, paragraph (a), $15 must be retained by the county. The local
registrar must pay $85 to the commissioner of finance to be deposited as follows:

(1) $50 in the general fund;

(2) $3 in the new text begin state government new text end special revenue fund to be appropriated to the
commissioner of deleted text begin education deleted text end new text begin public safety new text end for parenting time centers under section 119A.37;

(3) $2 in the special revenue fund to be appropriated to the commissioner of health
for developing and implementing the MN ENABL program under section 145.9255;

(4) $25 in the special revenue fund is appropriated to the commissioner of
employment and economic development for the displaced homemaker program under
section 116L.96; and

(5) $5 in the special revenue fund is appropriated to the commissioner of human
services for the Minnesota Healthy Marriage and Responsible Fatherhood Initiative under
section 256.742.

(b) Of the $30 fee under subdivision 1b, paragraph (b), $15 must be retained by the
county. The local registrar must pay $15 to the commissioner of finance to be deposited
as follows:

(1) $5 as provided in paragraph (a), clauses (2) and (3); and

(2) $10 in the special revenue fund is appropriated to the commissioner of
employment and economic development for the displaced homemaker program under
section 116L.96.

(c) The increase in the marriage license fee under paragraph (a) provided for in Laws
2004, chapter 273, and disbursement of the increase in that fee to the special fund for the
Minnesota Healthy Marriage and Responsible Fatherhood Initiative under paragraph (a),
clause (5), is contingent upon the receipt of federal funding under United States Code, title
42, section 1315, for purposes of the initiative.

Sec. 2. new text begin RULEMAKING AUTHORITY.
new text end

new text begin Subdivision 1. new text end

new text begin Career and technical education. new text end

new text begin The commissioner of education
shall adopt rules under Minnesota Statutes, chapter 14, for the administration of career
and technical education programs for grades 7 through 12 under Minnesota Statutes,
sections 124D.452, 124D.4531, and 124D.454, to ensure that the career and technical levy
and programs can be administered to serve students under the current state and local
organizational structures.
new text end

new text begin Subd. 2. new text end

new text begin Statewide graduation tests. new text end

new text begin The commissioner of education shall adopt
rules under Minnesota Statutes, chapter 14, for the administration of statewide graduation
tests.
new text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 3. new text begin APPROPRIATIONS; DEPARTMENT OF EDUCATION.
new text end

new text begin Subdivision 1. new text end

new text begin Department of Education. new text end

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

new text begin Subd. 2. new text end

new text begin Department. new text end

new text begin (a) For the Department of Education:
new text end

	new text begin $ new text end	new text begin 22,425,000 new text end	new text begin ..... new text end	new text begin 2008 new text end
	new text begin $ new text end	new text begin 22,344,000 new text end	new text begin ..... new text end	new text begin 2009 new text end

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

new text begin (b) $260,000 each year is for the Minnesota Children's Museum.
new text end

new text begin (c) $41,000 each year is for the Minnesota Academy of Science.
new text end

new text begin (d) $614,000 in fiscal year 2008 and $622,000 in fiscal year 2009 are for the Board
of Teaching.
new text end

new text begin (e) $162,000 in fiscal year 2008 and $165,000 in fiscal year 2009 are for the Board
of School Administrators.
new text end

new text begin (f) $204,000 in fiscal year 2008 is for rulemaking under section 1, subdivision 1.
new text end

new text begin (g) $204,000 in fiscal year 2008 is for rulemaking under section 1, subdivision 2.
new text end

new text begin (h) The expenditures of federal grants and aids as shown in the biennial budget
document and its supplements are approved and appropriated and shall be spent as
indicated.
new text end

Sec. 4. new text begin APPROPRIATIONS; DEPARTMENT OF PUBLIC SAFETY.
new text end

new text begin The sums indicated in this section are appropriated from the state government
special revenue fund to the Department of Public Safety for the fiscal years designated to
fund parenting time centers as described in Minnesota Statutes, section 119A.37:
new text end

	new text begin $ new text end	new text begin 192,000 new text end	new text begin ..... new text end	new text begin 2007 new text end
	new text begin $ new text end	new text begin 96,000 new text end	new text begin ..... new text end	new text begin 2008 new text end
	new text begin $ new text end	new text begin 96,000 new text end	new text begin ..... new text end	new text begin 2009 new text end

new text begin The 2007 appropriation includes $96,000 for 2006, and $96,000 for 2007.
new text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 5. new text begin APPROPRIATIONS; MINNESOTA STATE ACADEMIES.
new text end

new text begin The sums indicated in this section are appropriated from the general fund to the
Minnesota State Academies for the Deaf and the Blind for the fiscal years designated:
new text end

	new text begin $ new text end	new text begin 11,504,000 new text end	new text begin ..... new text end	new text begin 2008 new text end
	new text begin $ new text end	new text begin 11,527,000 new text end	new text begin ..... new text end	new text begin 2009 new text end

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

Sec. 6. new text begin APPROPRIATIONS; PERPICH CENTER FOR ARTS EDUCATION.
new text end

new text begin The sums indicated in this section are appropriated from the general fund to the
Perpich Center for Arts Education for the fiscal years designated:
new text end

	new text begin $ new text end	new text begin 6,808,000 new text end	new text begin ..... new text end	new text begin 2008 new text end
	new text begin $ new text end	new text begin 6,955,000 new text end	new text begin ..... new text end	new text begin 2009 new text end

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