SF 2095

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

A bill for an act
relating to education; providing for early childhood and family, kindergarten
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, state agencies, forecast adjustments, and technical and conforming
amendments; providing for reports; providing for rulemaking; appropriating
money; amending Minnesota Statutes 2006, sections 16A.152, subdivision 2;
119A.52; 120A.22, subdivision 7; 120B.024; 120B.12, subdivision 2; 120B.132;
121A.17, subdivision 5; 121A.19; 122A.16; 122A.415, by adding subdivisions;
122A.61, by adding a subdivision; 122A.628, subdivision 2; 123A.44; 123A.441;
123A.442; 123A.443; 123A.73, subdivision 8; 123B.02, by adding a subdivision;
123B.143, subdivision 1; 123B.53, subdivision 1; 123B.54; 123B.57, subdivision
3; 123B.63, subdivision 3; 123B.71, subdivision 9; 123B.79, subdivision 6, by
adding a subdivision; 123B.81, subdivisions 2, 4, 7; 123B.83, subdivision 2;
123B.92, subdivisions 1, 3; 124D.095, subdivision 3; 124D.10, subdivisions
3, 4, 23a, 24; 124D.11, subdivision 1; 124D.111, subdivision 1; 124D.128,
subdivisions 1, 2, 3; 124D.13, subdivision 2, by adding a subdivision; 124D.135,
subdivisions 1, 3, 5, 6; 124D.15, subdivision 3; 124D.34, subdivision 7; 124D.42,
by adding a subdivision; 124D.4531, subdivisions 1, 3; 124D.454, subdivisions
2, 3; 124D.531, subdivision 4; 124D.55; 124D.65, subdivisions 6, 11; 124D.84,
subdivision 1; 125A.11, subdivision 1; 125A.14; 125A.39; 125A.42; 125A.44;
125A.45; 125A.56; 125A.75, subdivisions 1, 4, by adding a subdivision;
125A.76, subdivisions 1, 2, 4, 5; 125A.79, subdivisions 1, 5, 6, 8; 125B.15;
126C.01, subdivision 9; 126C.05, subdivision 1; 126C.10, subdivisions 1, 2,
13a, 13b, 18, 24, 26, 27, 29, 30, 31, 32, 33, 34, 35, 36, by adding a subdivision;
126C.13, subdivision 4, by adding subdivisions; 126C.21, subdivisions 3, 5;
126C.44; 126C.45; 126C.48, subdivision 7; 127A.095, subdivision 2; 127A.441;
127A.47, subdivisions 7, 8; 127A.49, subdivisions 2, 3; 128D.11, subdivision 3;
134.31, by adding a subdivision; 134.355, subdivision 9; 272.02, subdivision 64;
272.029, by adding a subdivision; 275.065, subdivision 1; 517.08, subdivision
1c; Laws 2005, First Special Session chapter 5, article 1, section 54, subdivisions
2, as amended, 4, 5, as amended, 6, as amended, 7, as amended, 8, as amended;
article 2, sections 81, as amended; 84, subdivisions 2, as amended, 3, as
amended, 4, as amended, 6, as amended, 10, as amended; article 3, section 18,
subdivisions 2, as amended, 3, as amended, 4, as amended, 5, as amended, 6, as
amended; article 4, section 25, subdivisions 2, as amended, 3, as amended; article
5, section 17, subdivision 3, as amended; article 7, section 20, subdivisions 2,
as amended, 3, as amended, 4, as amended; article 8, section 8, subdivisions
2, as amended, 5, as amended; article 9, section 4, subdivision 2; Laws 2006,
chapter 263, article 3, section 15; Laws 2006, chapter 282, article 2, section 28,
subdivision 4; article 3, section 4, subdivision 2; proposing coding for new law
in Minnesota Statutes, chapters 124D; 127A; repealing Minnesota Statutes 2006,
sections 123A.22, subdivision 11; 123B.749; 123B.81, subdivision 8; 124D.06;
124D.454, subdivisions 4, 5, 6, 7; 124D.531, subdivision 5; 124D.62; 125A.10;
125A.75, subdivision 6; 125A.76, subdivision 3; 126C.10, subdivisions 13a,
13b, 25, 28, 29, 30, 32, 33, 34, 35, 36.

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

ARTICLE 1

GENERAL EDUCATION

Section 1.

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

Subd. 2.

Additional revenues; priority.

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

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

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

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

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

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

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

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

Sec. 2.

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

Subdivision 1.

General education revenue.

(a) General education revenue must
be paid to a charter school as though it were a district. The general education revenue
for each adjusted marginal cost pupil unit is the state average general education revenue
per pupil unit, plus the referendum equalization aid allowance in the pupil's district of
residence, minus an amount equal to the product of the formula allowance according to
section 126C.10, subdivision 2, times deleted text begin .0485 deleted text end new text begin .0416 new text end , calculated without basic skills revenue,
extended time revenue, alternative teacher compensation revenue, transition revenue, and
transportation sparsity revenue, plus basic skills revenue, extended time revenue, basic
alternative teacher compensation aid according to section 126C.10, subdivision 34, and
transition revenue as though the school were a school district. The general education
revenue for each extended time marginal cost pupil unit equals $4,378 new text begin for fiscal year 2007
and $4,410 for fiscal year 2008 and later new text end .

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

new text begin EFFECTIVE DATE. new text end

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

Sec. 3.

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

Subdivision 1.

Program established.

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

Sec. 4.

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

Subd. 2.

Commissioner designation.

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

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

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

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

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

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

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

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

Sec. 5.

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

Subd. 3.

Student planning.

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

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

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

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

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

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

Sec. 6.

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

Subdivision 1.

General education revenue.

new text begin (a) new text end For fiscal deleted text begin year 2006 and later deleted text end new text begin years
2007 and 2008 new text end , the general education revenue for each district equals the sum of the
district's basic revenue, extended time revenue, gifted and talented revenue, basic skills
revenue, training and experience revenue, secondary sparsity revenue, elementary sparsity
revenue, transportation sparsity revenue, total operating capital revenue, equity revenue,
alternative teacher compensation revenue new text begin under section 122A.415 new text end , and transition revenue.

new text begin (b) For fiscal year 2009 and later, the general education revenue for each district
equals the sum of the district's basic revenue, extended time revenue, gifted and talented
revenue, basic skills revenue, training and experience revenue, secondary sparsity revenue,
elementary sparsity revenue, transportation sparsity revenue, total operating capital
revenue, equity revenue, and transition revenue.
new text end

Sec. 7.

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. deleted text begin The formula
allowance for fiscal year 2005 is $4,601. The formula allowance for fiscal year 2006 is
$4,783. deleted text end The formula allowance for fiscal year 2007 and subsequent years is $4,974.

Sec. 8.

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 deleted text begin later deleted text end new text begin 2008 new text end , 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 2007 and deleted text begin later deleted text end new text begin 2008 new text end .

Sec. 9.

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

Subd. 13b.

Operating capital aid.

new text begin For fiscal years 2007 and 2008, new text end a district's
operating capital aid equals its operating capital revenue minus its operating capital levy
times the ratio of the actual amount levied to the permitted levy.

Sec. 10.

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. 11.

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 deleted text begin one-half of the per pupil allowance in paragraph (f) deleted text end new text begin $46 new text end times its
adjusted marginal cost pupil units.

new text begin EFFECTIVE DATE. new text end

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

Sec. 12.

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
(d), 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. 13.

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. 14.

Minnesota Statutes 2006, section 126C.10, subdivision 29, is amended to read:

Subd. 29.

Equity levy.

To obtain equity revenue for fiscal deleted text begin year 2005 deleted text end new text begin years 2007 new text end and
deleted text begin later deleted text end new text begin 2008 new text end , a district may levy an amount not more than the product of its equity revenue
for the fiscal year times the lesser of one or the ratio of its referendum market value per
resident marginal cost pupil unit to $476,000.

Sec. 15.

Minnesota Statutes 2006, section 126C.10, subdivision 30, is amended to read:

Subd. 30.

Equity aid.

new text begin For fiscal years 2007 and 2008, new text end a district's equity aid equals
its equity revenue minus its equity levy times the ratio of the actual amount levied to
the permitted levy.

Sec. 16.

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. 17.

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 Minnesota
Statutes 2006, 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. 18.

Minnesota Statutes 2006, section 126C.10, subdivision 32, is amended to read:

Subd. 32.

Transition levy.

To obtain transition revenue for fiscal deleted text begin year 2005 deleted text end new text begin years
2007 new text end and deleted text begin later deleted text end new text begin 2008 new text end , a district may levy an amount not more than the product of its
transition revenue for the fiscal year times the lesser of one or the ratio of its referendum
market value per resident marginal cost pupil unit to $476,000.

Sec. 19.

Minnesota Statutes 2006, section 126C.10, subdivision 33, is amended to read:

Subd. 33.

Transition aid.

deleted text begin (a) For fiscal year 2004, a district's transition aid equals
its transition revenue.
deleted text end

deleted text begin (b) deleted text end For fiscal deleted text begin year 2005 deleted text end new text begin years 2007 new text end and deleted text begin later deleted text end new text begin 2008 new text end , a district's transition aid equals its
transition revenue minus its transition levy times the ratio of the actual amount levied to
the permitted levy.

Sec. 20.

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

Subd. 34.

Basic alternative teacher compensation aid.

(a) deleted text begin For fiscal year 2006,
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 For fiscal deleted text begin year deleted text end new text begin years new text end 2007 and deleted text begin later deleted text end new text begin 2008 new 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.

deleted text begin (c) deleted text end new text begin (b) new text end 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 and
$44,159,000 for fiscal year 2008 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.

Sec. 21.

Minnesota Statutes 2006, section 126C.10, subdivision 35, is amended to read:

Subd. 35.

Alternative teacher compensation levy.

For fiscal deleted text begin year deleted text end new text begin years new text end 2007
and deleted text begin later deleted text end new text begin 2008 new text end , the alternative teacher compensation levy for a district receiving basic
alternative teacher compensation aid equals the product of (1) the difference between the
district's alternative teacher compensation revenue and the district's basic alternative
teacher compensation aid times (2) the lesser of one or the ratio of the district's adjusted
net tax capacity per adjusted pupil unit to $5,913.

Sec. 22.

Minnesota Statutes 2006, section 126C.10, subdivision 36, is amended to read:

Subd. 36.

Alternative teacher compensation aid.

(a) For fiscal deleted text begin year deleted text end new text begin years new text end 2007
and deleted text begin later deleted text end new text begin 2008 new text end , a district's alternative teacher compensation equalization aid equals the
district's alternative teacher compensation revenue minus the district's basic alternative
teacher compensation aid minus the district's alternative teacher compensation levy. If a
district does not levy the entire amount permitted, the alternative teacher compensation
equalization aid must be reduced in proportion to the actual amount levied.

(b) A district's alternative teacher compensation aid equals the sum of the
district's basic alternative teacher compensation aid and the district's alternative teacher
compensation equalization aid.

Sec. 23.

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

new text begin Subd. 3a. new text end

new text begin Consolidated tax rate. new text end

new text begin The commissioner must establish the consolidated
tax rate by July 1 of each year for levies payable in the following year. The consolidated
tax capacity rate must be a rate, rounded up to the nearest hundredth of a percent, that,
when applied to the adjusted net tax capacity for all districts, raises the amount specified
in this subdivision. The consolidated tax rate must be the rate that raises $119,245,000
for fiscal year 2009, $134,728,000 for fiscal year 2010, and $148,667,000 for fiscal year
2011 and later years. The consolidated tax rate may not be changed due to changes
or corrections made to a district's adjusted net tax capacity after the tax rate has been
established. A school district may adopt a board resolution to reduce its levy below the
amount calculated according to this subdivision.
new text end

Sec. 24.

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

new text begin Subd. 3b. new text end

new text begin Consolidated levy. new text end

new text begin To obtain general education revenue, a district may
levy an amount not to exceed the consolidated tax rate times the adjusted net tax capacity
of the district for the preceding year. If the amount of the consolidated levy would exceed
the general education revenue, the consolidated levy must be determined according
to subdivision 3c. If a district adopts a board resolution to reduce its consolidated
levy, according to subdivision 3a, the district's general education aid shall be reduced
proportionately.
new text end

Sec. 25.

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

new text begin Subd. 3c. new text end

new text begin Consolidated levy; districts off the formula. new text end

new text begin If the amount of the
consolidated levy for a district exceeds the district's general education revenue, the amount
of the consolidated levy must be limited to the following:
new text end

new text begin (1) the district's general education revenue; minus
new text end

new text begin (2) payments made for the same school year according to section 126C.21,
subdivision 3.
new text end

new text begin For the purposes of statutory cross-reference, a levy made according to this subdivision
shall be construed to be the levy made according to subdivision 3b.
new text end

Sec. 26.

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

Subd. 4.

General education aid.

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

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

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

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

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

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

deleted text begin (6) referendum aid according to section 126C.17; and
deleted text end

deleted text begin (7) online learning aid according to section 124D.096.
deleted text end

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

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

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

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

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

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

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

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

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

new text begin (b) For fiscal year 2009 and later, a district's general education aid is the sum of
the following amounts:
new text end

new text begin (1) the product of:
new text end

new text begin (i) the difference between the general education revenue and the consolidated levy;
times
new text end

new text begin (ii) the ratio of the actual amount levied to the permitted levy;
new text end

new text begin (2) shared time aid according to section 126C.01, subdivision 7;
new text end

new text begin (3) referendum aid according to section 126C.17, subdivisions 7 and 7a; and
new text end

new text begin (4) online learning aid according to section 124D.096.
new text end

Sec. 27.

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. 28.

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

Subd. 5.

Adjustment for failure to meet federal maintenance of effort.

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

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

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

new text begin EFFECTIVE DATE. new text end

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

Sec. 29.

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

126C.44 SAFE SCHOOLS LEVY.

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

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

new text begin EFFECTIVE DATE. new text end

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

Sec. 30.

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

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

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

Sec. 31.

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 and $191 for fiscal year 2008 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. 32.

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

Subd. 2.

Abatements.

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

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

(2) the ratio of:

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

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

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

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

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

new text begin (E) section 126C.13, if the district received general education aid according to
subdivision 4, paragraph (b), clause (i), of that section in the second preceding year;
new text end

new text begin (F) 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 (G) 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 (H) 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 (I) 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 (J) 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 (K) 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 (L) 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, or section 122A.415, subdivision 5, if the district
received alternative compensation equalization aid according to section 122A.415,
subdivision 6, 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. 33.

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.13, if the district received general education aid according to
subdivision 4, paragraph (b), clause (i), of that section in the second preceding year;
new text end

new text begin (F) 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 (G) 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 (H) 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 (I) 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 (J) 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 (K) 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 (L) 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, or section 122A.415, subdivision 5, if the district
received alternative compensation equalization aid according to section 122A.415,
subdivision 6, 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. 34.

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. 35.

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. 36. new text begin LIMITATION ON NEW ALTERNATIVE COMPENSATION SCHOOL
DISTRICTS, FISCAL YEARS 2008-2011.
new text end

new text begin Notwithstanding Minnesota Statutes, sections 122A.413; 122A.414; 122A.415;
122A.416; and 126C.10, subdivisions 34, 35, and 36, the Department of Education must
limit the participation in the alternative teacher pay program to those district sites and
charter schools that received alternative compensation revenue in fiscal year 2007 or those
district sites and charter schools that have an approved plan, under Minnesota Statutes,
section 122A.414, by March 10, 2007, for fiscal year 2008 alternative compensation
participation. This limitation applies to fiscal year 2008 through fiscal year 2011. No
additional district sites or charter schools may be approved until after June 30, 2012.
new text end

Sec. 37. new text begin CONSOLIDATED LEVY ADJUSTMENT.
new text end

new text begin (a) For taxes payable in 2008 only, a school district whose consolidated levy, as
computed by the commissioner under Minnesota Statutes, section 126C.13, subdivision
3a, is greater than the sum of the district's equity, transition, and operating capital levies
that the districts would have levied for taxes payable in 2008 under Minnesota Statutes
2006, section 126C.10, subdivisions 13a, 29, and 32, based on the February 2007 forecast,
shall be eligible for a consolidated levy adjustment. An eligible district's consolidated levy
adjustment shall be equal to the difference to the district's consolidated levy computed by
the commissioner according to Minnesota Statutes, section 126C.13, subdivision 3a, minus
the sum of the district's equity, transition, and operating capital levies that districts would
have levied for taxes payable in 2008 under Minnesota Statutes 2006, section 126C.10,
subdivisions 13a, 29, and 32, as computed according to the February 2007 forecast.
new text end

new text begin (b) Notwithstanding Minnesota Statutes, section 126C.13, subdivision 3a, for
fiscal year 2009 only, the commissioner of education shall reduce an eligible district's
consolidated levy by the amount of an eligible district's consolidated levy adjustment.
The commissioner shall increase an eligible district's general education state aid under
Minnesota Statutes, section 126C.13, subdivision 4, by the amount of the consolidated
levy adjustment.
new text end

Sec. 38. new text begin EDUCATION IMPROVEMENT ACCOUNT.
new text end

new text begin The commissioner of finance shall cancel $78,000,000 in fiscal year 2009 and
$83,334,000 in fiscal year 2010 and in each fiscal year thereafter from the education
improvement account in the general fund to the general fund.
new text end

Sec. 39. new text begin BROWNS VALLEY FISCAL YEAR 2007 PUPIL UNITS.
new text end

new text begin Notwithstanding Minnesota Statutes, section 126C.05, the fiscal year 2007
kindergarten through grade 8 average daily membership for Independent School District
No. 801, Browns Valley, shall be the greater of the amount that would have been computed
if the district's school building had not reopened after the flood of March 14, 2007, or the
amount computed using actual data for the entire school year.
new text end

Sec. 40. new text begin FISCAL YEARS 2008 AND 2009 DECLINING PUPIL UNIT AID,
BROWNS VALLEY.
new text end

new text begin For fiscal years 2008 and 2009 only, Independent School District No. 801, Browns
Valley, is eligible for declining pupil unit aid equal to the greater of zero or the product
of the general education formula allowance times the difference between the district's
adjusted marginal cost pupil units attributable to kindergarten through grade 8 for fiscal
year 2007 and the district's adjusted marginal cost pupil units attributable to kindergarten
through grade 8 for that fiscal year. Notwithstanding Minnesota Statutes, section 126C.13,
the declining pupil unit aid must be included in calculating the district's general education
aid.
new text end

Sec. 41. new text begin FISCAL YEARS 2008 AND 2009 DECLINING PUPIL UNIT AID,
RED LAKE.
new text end

new text begin For fiscal years 2008 and 2009 only, Independent School District No. 38, Red Lake,
is eligible for declining pupil unit aid equal to the greater of zero or the product of $4,974
times the difference between the district's adjusted marginal cost pupil units for fiscal year
2005 and the district's adjusted marginal cost pupil units for that fiscal year times .75.
Notwithstanding Minnesota Statutes, section 126C.13, the declining pupil unit aid must be
included in calculating the district's general education aid.
new text end

Sec. 42. new text begin SCHOOL FINANCE STUDY.
new text end

new text begin The commissioner of education must contract with an independent contractor that
has extensive experience working with various states on education finance systems to
continue and complete the work begun by P.S. Minnesota. The contractor, in consultation
with the Department of Education and P.S. Minnesota, must recommend a rationally
based education finance system that is adequately funded and addresses the unique
circumstances of individual districts. The contractor shall build upon the work of the
governor's Education Finance Task Force and that of APA and Associates. The contractor,
Department of Education, and P.S. Minnesota must report to the education finance
committees of the legislature by January 15, 2008.
new text end

Sec. 43. new text begin RETIRED EMPLOYEE HEALTH BENEFITS.
new text end

new text begin Notwithstanding Minnesota Statutes, section 126C.41, subdivision 2, Independent
School District No. 316, Greenway, and Independent School District No. 93, Carlton,
may levy an amount up to the amount the district is required by the collective bargaining
agreement in effect on March 30, 1992, to pay for health insurance or unreimbursed
medical expenses for licensed and nonlicensed employees who have terminated services in
the employing district and withdrawn from active teaching service or other active service,
as applicable, before July 1, 1998, if a sunset clause is in effect for the current collective
bargaining agreement. The total amount of the levy each year may not exceed $600,000.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxes payable in 2008 through
2013.
new text end

Sec. 44. 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 5,465,539,000 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 5,467,878,000 new text end	new text begin ..... new text end	new text begin 2009 new text end

new text begin The 2008 appropriation includes $531,733,000 for 2007 and $4,933,806,000 for
2008.
new text end

new text begin The 2009 appropriation includes $548,200,000 for 2008 and $4,919,678,000 for
2009.
new text end

new text begin The fiscal year 2009 appropriation includes $75,000,000 attributable to the education
improvement account in the general fund.
new text end

new text begin Subd. 3. new text end

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

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

new text begin $ new text end

new text begin 870,000 new text end

new text begin ..... new text end

new text begin 2008 new text end

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

new text begin Subd. 4. new text end

new text begin Enrollment options transportation. new text end

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

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

new text begin Subd. 5. new text end

new text begin Abatement revenue. new text end

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

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

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

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

new text begin Subd. 6. new text end

new text begin Consolidation transition. new text end

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

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

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

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

new text begin Subd. 7. new text end

new text begin Nonpublic pupil education aid. new text end

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

	new text begin $ new text end	new text begin 16,174,000 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 16,435,000 new text end	new text begin ..... new text end	new text begin 2009 new text end

new text begin The 2008 appropriation includes $1,606,000 for 2007 and $14,568,000 for 2008.
new text end

new text begin The 2009 appropriation includes $1,618,000 for 2008 and $14,817,000 for 2009.
new text end

new text begin Subd. 8. new text end

new text begin Nonpublic pupil transportation. new text end

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

	new text begin $ new text end	new text begin 21,167,000 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 20,780,000 new text end	new text begin ..... new text end	new text begin 2009 new text end

new text begin The 2008 appropriation includes $2,124,000 for 2007 and $19,043,000 for 2008.
new text end

new text begin The 2009 appropriation includes $2,115,000 for 2008 and $18,665,000 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 65,000 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 65,000 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

new text begin Subd. 11. new text end

new text begin Consolidated levy adjustment. new text end

new text begin For a consolidated levy adjustment
according to section 37:
new text end

new text begin $ new text end

new text begin 487,000 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. 12. new text end

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

new text begin For declining pupil unit aid
to Independent School District No. 801, Browns Valley:
new text end

	new text begin $ new text end	new text begin 9,000 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 55,000 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 60,000 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. 13. new text end

new text begin Education finance study. new text end

new text begin For a contract for the education finance
study under section 42:
new text end

new text begin $ new text end

new text begin 75,000 new text end

new text begin ..... new text end

new text begin 2008 new text end

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

new text begin Subd. 14. new text end

new text begin Declining pupil aid, Red Lake. new text end

new text begin For a grant to Independent School
District No. 38, Red Lake, for declining pupil aid:
new text end

	new text begin $ new text end	new text begin 455,000 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 EFFECTIVE DATE. new text end

new text begin Subdivision 12 is effective the day following final enactment.
new text end

Sec. 45. new text begin REVISOR'S INSTRUCTION.
new text end

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

Sec. 46. new text begin REPEALER.
new text end

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

new text begin (b) new text end new text begin Minnesota Statutes 2006, section 126C.10, subdivisions 13a, 13b, 29, 30, 32, 33,
34, 35, and 36, new text end new text begin are repealed for revenue for fiscal year 2009.
new text end

new text begin (c) 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 120A.22, subdivision 7, is amended to
read:

Subd. 7.

Education records.

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

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

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

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

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

Sec. 2.

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 seven elective course credits.

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

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

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

Sec. 3.

Minnesota Statutes 2006, section 120B.12, subdivision 2, is amended to read:

Subd. 2.

Identification.

For the 2002-2003 school year and later, each school
district shall identify before the end of first grade students who are at risk of not
learning to read before the end of second grade. The district must use a locally adopted
assessment method. new text begin The district must annually report the results of the assessment to the
commissioner by June 1.
new text end

Sec. 4.

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. 5.

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

122A.16 HIGHLY QUALIFIED TEACHER DEFINED.

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

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

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

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

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

new text begin (4) has demonstrated subject matter competency in each of the core academic
subjects in which the teacher teaches as defined by the federal No Child Left Behind Act new text end .

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

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

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

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

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

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

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

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

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

(c) deleted text begin Achievement of the HOUSSE criteria is not equivalent to a license. A teacher
must obtain permission from the Board of Teaching in order to teach in a public school deleted text end new text begin
Subject matter competency to meet federal highly qualified teacher requirements is
determined by the state in compliance with the Elementary and Secondary Education Act,
United States Code, title 20, section 7801(23), and Individuals with Disabilities Education
Improvement Act, United States Code, title 20, section 1401(10) new text end .

Sec. 6.

Minnesota Statutes 2006, section 122A.415, is amended by adding a
subdivision to read:

new text begin Subd. 4. new text end

new text begin Basic alternative teacher compensation aid. new text end

new text begin (a) For fiscal year 2009
and later, the basic alternative teacher compensation aid for a school district with a plan
approved under section 122A.414, subdivision 2b, equals 73.1 percent of the alternative
teacher compensation revenue under 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 subdivision 1.
new text end

new text begin (b) Notwithstanding paragraph (a) and subdivision 1, the state total basic alternative
teacher compensation aid entitlement must not exceed $43,515,000 for fiscal year 2009,
$42,953,000 for fiscal year 2010, and $42,643,000 for fiscal year 2011 and later. The
commissioner must limit the amount of alternative teacher compensation aid approved
under this section so as not to exceed these limits.
new text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 7.

Minnesota Statutes 2006, section 122A.415, is amended by adding a
subdivision to read:

new text begin Subd. 5. new text end

new text begin Alternative teacher compensation levy. new text end

new text begin For fiscal year 2009 and later,
the alternative teacher compensation levy for a district receiving basic alternative teacher
compensation aid equals the product of: (1) the difference between the district's alternative
teacher compensation revenue, under subdivision 1, and the district's basic alternative
teacher compensation aid, under subdivision 4; times (2) the lesser of one or the ratio of
the district's adjusted net tax capacity per adjusted pupil unit to $5,913.
new text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 8.

Minnesota Statutes 2006, section 122A.415, is amended by adding a
subdivision to read:

new text begin Subd. 6. new text end

new text begin Alternative teacher compensation aid. new text end

new text begin (a) For fiscal year 2009 and
later, a district's alternative teacher compensation equalization aid equals the district's
alternative teacher compensation revenue, minus the district's basic alternative teacher
compensation aid, minus the district's alternative teacher compensation levy. If a district
does not levy the entire amount permitted under subdivision 5, the alternative teacher
compensation equalization aid must be reduced in proportion to the actual amount levied.
new text end

new text begin (b) A district's alternative teacher compensation aid equals the sum of the
district's basic alternative teacher compensation aid and the district's alternative teacher
compensation equalization aid.
new text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 9.

Minnesota Statutes 2006, section 122A.61, is amended by adding a subdivision
to read:

new text begin Subd. 3. new text end

new text begin Graduate study. new text end

new text begin A school district may use the revenue reserved under
subdivision 1 for grants to the district's teachers to pay for graduate study leading to
certification as a college in the schools or concurrent enrollment teacher. In order to
receive a grant, the teacher must be enrolled in a program that includes graduate-level
study focused on teaching a core subject.
new text end

Sec. 10.

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

new text begin Subd. 24. new text end

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

new text begin The board may authorize and pay for the membership of any administrator
designated by the board and the school district in those local economic development
associations or other community or civic organizations it deems appropriate.
new text end

Sec. 11.

Minnesota Statutes 2006, section 123B.143, subdivision 1, is amended to read:

Subdivision 1.

Contract; duties.

All districts maintaining a classified secondary
school must employ a superintendent who shall be an ex officio nonvoting member of the
school board. The authority for selection and employment of a superintendent must be
vested in the board in all cases. An individual employed by a board as a superintendent
shall have an initial employment contract for a period of time no longer than three years
from the date of employment. Any subsequent employment contract must not exceed a
period of three years. A board, at its discretion, may or may not renew an employment
contract. A board must not, by action or inaction, extend the duration of an existing
employment contract. Beginning 365 days prior to the expiration date of an existing
employment contract, a board may negotiate and enter into a subsequent employment
contract to take effect upon the expiration of the existing contract. A subsequent contract
must be contingent upon the employee completing the terms of an existing contract. If a
contract between a board and a superintendent is terminated prior to the date specified in
the contract, the board may not enter into another superintendent contract with that same
individual that has a term that extends beyond the date specified in the terminated contract.
A board may terminate a superintendent during the term of an employment contract for any
of the grounds specified in section 122A.40, subdivision 9 or 13. A superintendent shall
not rely upon an employment contract with a board to assert any other continuing contract
rights in the position of superintendent under section 122A.40. Notwithstanding the
provisions of sections 122A.40, subdivision 10 or 11, 123A.32, 123A.75, or any other law
to the contrary, no individual shall have a right to employment as a superintendent based
on order of employment in any district. If two or more districts enter into an agreement for
the purchase or sharing of the services of a superintendent, the contracting districts have
the absolute right to select one of the individuals employed to serve as superintendent
in one of the contracting districts and no individual has a right to employment as the
superintendent to provide all or part of the services based on order of employment in a
contracting district. The superintendent of a district shall perform the following:

(1) visit and supervise the schools in the district, report and make recommendations
about their condition when advisable or on request by the board;

(2) recommend to the board employment and dismissal of teachers;

(3) superintend school grading practices and examinations for promotions;

(4) make reports required by the commissioner;

(5) by January 10, submit an annual report to the commissioner in a manner
prescribed by the commissioner, in consultation with school districts, identifying the
expenditures that the district requires to ensure an 80 percent student passage rate on the
deleted text begin basic standards test deleted text end new text begin MCA-IIs new text end taken in the eighth grade, identifying the highest student
passage rate the district expects it will be able to attain on the deleted text begin basic standards test deleted text end new text begin MCA-IIs new text end
by grade 12, new text begin and new text end the amount of expenditures that the district requires to attain the targeted
student passage rate deleted text begin , and how much the district is cross-subsidizing programs with special
education, basic skills, and general education revenue deleted text end ; and

(6) perform other duties prescribed by the board.

Sec. 12.

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

Subd. 3.

Alternative attendance programs.

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

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

new text begin EFFECTIVE DATE. new text end

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

Sec. 13.

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

Subd. 3.

Authorization; notice; limitations on enrollment.

(a) A student may
apply to an online learning provider to enroll in online learning. A student age 17 or
younger must have the written consent of a parent or guardian to apply. No school district
or charter school may prohibit a student from applying to enroll in online learning. An
online learning provider that accepts a student under this section must, within ten days,
notify the student and the enrolling district if the enrolling district is not the online learning
provider. The notice must report the student's course or program and hours of instruction.

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

(c) An online learning provider may limit enrollment if the provider's school board
or board of directors adopts by resolution specific standards for accepting and rejecting
students' applications. new text begin Student applications may not be rejected for criteria listed in
section 124D.03, subdivision 6.
new text end

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

Sec. 14.

Minnesota Statutes 2006, section 124D.10, subdivision 3, is amended to read:

Subd. 3.

Sponsor.

(a) A school board; intermediate school district school board;
education district organized under sections 123A.15 to 123A.19; charitable organization
under section 501(c)(3) of the Internal Revenue Code of 1986 that is a member of the
Minnesota Council of Nonprofits or the Minnesota Council on Foundations, registered
with the attorney general's office, and reports an end-of-year fund balance of at least
$2,000,000; Minnesota private college that grants two- or four-year degrees and is
registered with the Minnesota Office of Higher Education under chapter 136A; community
college, state university, or technical college, governed by the Board of Trustees of the
Minnesota State Colleges and Universities; or the University of Minnesota may sponsor
one or more charter schools.

(b) A nonprofit corporation subject to chapter 317A, described in section 317A.905,
and exempt from federal income tax under section 501(c)(6) of the Internal Revenue Code
of 1986, may sponsor one or more charter schools if the charter school has operated for
at least three years under a different sponsor and if the nonprofit corporation has existed
for at least 25 years.

new text begin (c) The commissioner may authorize no more than a total of 150 charter schools.
new text end

Sec. 15.

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

Subd. 4.

Formation of school.

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

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

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

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

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

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

(2) the charter school is fiscally sound;

(3) the sponsor supports the expansion; and

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

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

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

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

(3) establish proper filing techniques;

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

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

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

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

Sec. 16.

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

Subd. 23a.

Related party lease costs.

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

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

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

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

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

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

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

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

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

Sec. 17.

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

Subd. 24.

Pupil enrollment upon nonrenewal or termination of charter school
contract.

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

Sec. 18.

new text begin [124D.2211] AFTER-SCHOOL COMMUNITY LEARNING
PROGRAMS.
new text end

new text begin Subdivision 1. new text end

new text begin Establishment. new text end

new text begin A competitive statewide after-school community
learning grant program is established to provide grants to community or nonprofit
organizations, political subdivisions, or school-based programs that serve youth after
school or during nonschool hours. The commissioner shall develop criteria for after-school
community learning programs.
new text end

new text begin Subd. 2. new text end

new text begin Program outcomes. new text end

new text begin The expected outcomes of the after-school
community learning programs are to increase:
new text end

new text begin (1) school connectedness of participants;
new text end

new text begin (2) academic achievement of participating students in one or more core academic
areas; and
new text end

new text begin (3) the capacity of participants to become productive adults.
new text end

new text begin Subd. 3. new text end

new text begin Grants. new text end

new text begin An applicant shall submit an after-school community learning
program proposal to the commissioner. The submitted plan must include:
new text end

new text begin (1) collaboration with and leverage of existing community resources that have
demonstrated effectiveness;
new text end

new text begin (2) outreach to children and youth; and
new text end

new text begin (3) involvement of local governments, including park and recreation boards or
schools, unless no government agency is appropriate.
new text end

new text begin Proposals will be reviewed and approved by the commissioner. Approved proposals
are subject to receiving funding.
new text end

Sec. 19.

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. 20.

Minnesota Statutes 2006, section 124D.4531, subdivision 1, is amended to
read:

Subdivision 1.

Career and technical levy.

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

(1) deleted text begin $80 deleted text end new text begin $91 new text end times the district's average daily membership new text begin served new text end in grades 10
through 12 for the fiscal year in which the levy is certified; or

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

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

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

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

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

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

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

(vii) specialized vocational instructional supplies.

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

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

Sec. 21.

Minnesota Statutes 2006, section 124D.4531, subdivision 3, is amended to
read:

Subd. 3.

Levy guarantee.

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

(1) new text begin the greater of $15,000 or new text end the district's career and technical education levy
authority for the previous fiscal year; or

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

Sec. 22.

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

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

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

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

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

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

new text begin EFFECTIVE DATE. new text end

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

Sec. 23.

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

Subdivision 1.

Awards.

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

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

Sec. 24.

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

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

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

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

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

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

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

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

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

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

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

new text begin EFFECTIVE DATE. new text end

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

Sec. 25.

Minnesota Statutes 2006, section 125A.56, is amended to read:

125A.56 deleted text begin ALTERNATE INSTRUCTION REQUIRED BEFORE ASSESSMENT
REFERRAL; WAIVER deleted text end new text begin EARLY INTERVENING TO MAKE ADEQUATE
YEARLY PROGRESS REQUIRED new text end .

(a) Before a pupil is referred for a special education deleted text begin assessment deleted text end new text begin evaluation new text end , the
district must conduct and document at least two instructional strategies, alternatives,
or interventions new text begin using a system of scientifically based instruction in reading based on
the needs of the pupil new text end while the pupil is in the regular classroom. The pupil's teacher
must provide the documentation new text begin or the district may devise a problem-solving system to
meet this requirement new text end . A special education deleted text begin assessment deleted text end new text begin evaluation new text end team may waive this
requirement when they determine the pupil's need for the deleted text begin assessment deleted text end new text begin evaluation new text end is urgent.
This section may not be used to deny a pupil's right to a special education deleted text begin assessment deleted text end new text begin
evaluation except that a pupil's participation in a response to an intervention system when
conducted as a part of a special education evaluation shall not be construed as a denial of a
pupil's right to a special education assessment new text end .

(b) A school district deleted text begin shall use alternative intervention services, including the
assurance of mastery program under section 124D.66 and the supplemental early
education program under section 124D.081, to serve at-risk students who demonstrate
a need for alternative instructional strategies or interventions deleted text end new text begin may meet the requirement
under paragraph (a) by establishing an early intervening, cross-categorical program that
has the following components: new text end

new text begin (1) a system of valid and reliable general outcomes measures in reading with
satisfactory correlations to state testing administered to all students in kindergarten
through grade 8 at least three times per year. The assessment must be called a benchmark
assessment. Pupils in grades 9 and above may participate in benchmark assessments as
determined by the school. The system must have the capability to provide benchmark
assessments by measuring the performance of all pupils three times per year and the
capability to implement progress monitoring. For the purpose of this section, progress
monitoring is the frequent and continuous measurement of pupil performance;
new text end

new text begin (2) a system of scientifically based instruction and intervention in reading; and
new text end

new text begin (3) an organizational plan that allows teachers, paraprofessionals, and volunteers
funded through various funding streams to work as a team by grade level or other
configuration across all grades and settings to deliver instruction using a tiered model. The
team must be trained in response to intervention methodology new text end .

new text begin (c) A site using the provisions of paragraph (b) must have its teachers and
paraprofessionals work together in a collaborative manner with students who are at risk of
not meeting standards. Staff being claimed for state special education categorical aid may,
as an intervention provided for in paragraph (b), clause (2), provide instruction to pupils
who are at risk of not meeting standards when instructing them in a small group, which
includes one or more students with a disability at the same instructional level and making
the same progress in the curriculum or intervention so long as the needs of the pupils with
disabilities are being met consistent with their individual education plans. Schools must
ensure that the needs of the student with a disability in the groupings remain the focus
of instruction. Schools must not establish permanent classes or groups for instruction as
part of meeting this requirement. To the extent allowed by federal law, teachers and
paraprofessionals shall not be considered to be supplanting funds when instructing a group
of students during the core reading time established by the school since the instruction
supplements the capacity of the regular classroom teacher to provide instruction.
new text end

Sec. 26.

Minnesota Statutes 2006, section 127A.095, subdivision 2, is amended to read:

Subd. 2.

No Child Left Behind review.

(a) The legislature intends to require
the Department of Education to conduct a comprehensive review of the consolidated
state plan the state submitted to the federal Department of Education to implement the
No Child Left Behind Act. The Minnesota Department of Education shall seek waivers
under paragraph (b). If the Department of Education is unable to obtain waivers under
paragraph (b), it should recommend in its report under paragraph (b) whether the state
should opt out of the No Child Left Behind Act.

(b) The commissioner, by January 15, deleted text begin 2007 deleted text end new text begin 2008 new text end , shall report to the house of
representatives and senate committees having jurisdiction over kindergarten through grade
12 education policy and finance whether the department has received approval from
the federal Department of Education to:

(1) deleted text begin allow the state to develop a plan for determining adequate yearly progress that
uses multiple measures of student achievement that include value-added measurement of
student achievement in addition to standardized test results to evaluate school and student
performance deleted text end new text begin participate in the growth model pilot program new text end ;

(2) deleted text begin exclude from sanctions a school that is classified as not having made adequate
yearly progress due solely to different subgroups testing below proficient levels for at
least two consecutive years;
deleted text end

deleted text begin (3) allow the state to average three years of data for the purposes of identifying a
school for improvement;
deleted text end

deleted text begin (4) allow the state to use No Child Left Behind Act money to provide supplemental
education services only in the academic subject area that causes a school to miss adequate
yearly progress;
deleted text end

deleted text begin (5) deleted text end exclude from sanctions schools that have not made adequate yearly progress due
solely to a subgroup of students with disabilities not testing at a proficient level;

deleted text begin (6) deleted text end new text begin (3) new text end identify a school as not making adequate yearly progress only after the school
has missed the adequate yearly progress targets in the same deleted text begin subject and deleted text end subgroup for two
consecutive years;

deleted text begin (7) limit the score of a student within multiple subgroups to the smallest subgroup in
which that student is included when calculating adequate yearly progress;
deleted text end

deleted text begin (8) deleted text end new text begin (4) new text end determine when to hold schools accountable for including a student with
limited English proficiency in adequate yearly progress calculations; deleted text begin and
deleted text end

deleted text begin (9) use a fully computer-adaptive test for purposes of compliance with the No Child
Left Behind Act
deleted text end

new text begin (5) allow a district not making adequate yearly progress to offer supplemental
educational services as an option before offering school choice;
new text end

new text begin (6) allow a district not making adequate yearly progress to also be the supplemental
educational services provider;
new text end

new text begin (7) allow the state to maintain a subgroup size to 40 for the purposes of calculating
adequate yearly progress for subgroups of students with limited English proficiency and
subgroups of students with disabilities; and
new text end

new text begin (8) create flexibility to enable the state to define and identify highly qualified
teachers new text end .

Sec. 27.

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

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

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

new text begin EFFECTIVE DATE. new text end

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

Sec. 28. 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. 29. new text begin RULEMAKING REQUIRED.
new text end

new text begin (a) Notwithstanding the time limit in Minnesota Statutes, section 14.125, the Board
of Teaching must adopt the rules it was mandated to adopt under Laws 2003, chapter 129,
article 1, section 10. The board must publish a notice of intent to adopt rules or a notice of
hearing for rules subject to this section before January 1, 2008.
new text end

new text begin (b) The Board of Teaching may charge fees to issue new credentials and to renew
credentials for paraprofessionals issued credentials under the rules adopted under this
section.
new text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 30. new text begin APPROPRIATIONS.
new text end

new text begin Subdivision 1. new text end

new text begin Department. new text end

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

new text begin Subd. 2. new text end

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

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

	new text begin $ new text end	new text begin 31,875,000 new text end	new text begin ..... new text end	new text begin 2008 new text end
	new text begin $ new text end	new text begin 34,944,000 new text end	new text begin ..... new text end	new text begin 2009 new text end

new text begin The 2008 appropriation includes $2,814,000 for 2007 and $29,061,000 for 2008.
new text end

new text begin The 2009 appropriation includes $3,229,000 for 2008 and $31,715,000 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, subdivision 8:
new text end

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

new text begin The 2008 appropriation includes $241,000 for 2007 and $1,655,000 for 2008.
new text end

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

new text begin The base appropriation for fiscal year 2010 is $219,000 and for fiscal year 2011
and later is $0.
new text end

new text begin Subd. 4. new text end

new text begin Integration aid. new text end

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

	new text begin $ new text end	new text begin 61,769,000 new text end	new text begin ..... new text end	new text begin 2008 new text end
	new text begin $ new text end	new text begin 61,000,000 new text end	new text begin ..... new text end	new text begin 2009 new text end

new text begin The 2008 appropriation includes $5,824,000 for 2007 and $55,945,000 for 2008.
new text end

new text begin The 2009 appropriation includes $6,216,000 for 2008 and $54,784,000 for 2009.
new text end

new text begin Subd. 5. new text end

new text begin Magnet school 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 9,639,000 new text end	new text begin ..... new text end	new text begin 2008 new text end
	new text begin $ new text end	new text begin 11,567,000 new text end	new text begin ..... new text end	new text begin 2009 new text end

new text begin Subd. 7. new text end

new text begin Success for the future. new text end

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

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

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

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

new text begin Subd. 8. new text end

new text begin American Indian 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 2,212,000 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 2,380,000 new text end	new text begin ..... new text end	new text begin 2009 new text end

new text begin The 2008 appropriation includes $204,000 for 2007 and $2,008,000 for 2008.
new text end

new text begin The 2009 appropriation includes $223,000 for 2008 and $2,157,000 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 9,000,000 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 9,000,000 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. 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 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. 15. 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. 16. 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. 17. new text end

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

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

	new text begin $ new text end	new text begin 829,000 new text end	new text begin ..... new text end	new text begin 2008 new text end
	new text begin $ new text end	new text begin 829,000 new text end	new text begin ..... new text end	new text begin 2009 new text end

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

new text begin Subd. 18. 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. 19. 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 1,510,000 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 1,510,000 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) $250,000 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) $120,000 each year is for the quantum opportunities program.
new text end

new text begin (f) $500,000 each year is for grants to teachers enrolled in programs leading to
certification as a college in the schools or concurrent enrollment teacher.
new text end

new text begin Subd. 20. new text end

new text begin Mandarin Chinese program. new text end

new text begin For Mandarin Chinese program grants
under section 28:
new text end

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

new text begin 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. 21. 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 1,000,000 new text end	new text begin ..... new text end	new text begin 2008 new text end
	new text begin $ new text end	new text begin 1,000,000 new text end	new text begin ..... new text end	new text begin 2009 new text end

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

new text begin Subd. 22. new text end

new text begin Collaborative urban educator recruitment and training programs.
new text end

new text begin For grants to collaborative urban educator recruitment and training programs:
new text end

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

new text begin $400,000 each year is for the Southeast Asian teacher program at Concordia
University, St. Paul; $300,000 each year is for the collaborative urban educator program at
the University of St. Thomas; and $300,000 each year is for the Center for Excellence in
Urban Teaching at Hamline University. Grant recipients must collaborate with urban and
nonurban school districts.
new text end

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

new text begin Subd. 23. new text end

new text begin Alternative teacher compensation aid. new text end

new text begin For alternative teacher
compensation aid under Minnesota Statutes, section 122A.415, subdivision 6:
new text end

new text begin $ new text end

new text begin 39,164,000 new text end

new text begin ..... new text end

new text begin 2009 new text end

new text begin The 2009 appropriation includes $0 for fiscal year 2008 and $39,164,000 for fiscal
year 2009.
new text end

new text begin Subd. 24. new text end

new text begin Professional teaching standards. new text end

new text begin For grant awards for national board
for professional teaching standards certification and for regional coordinators to counsel
and assist teacher candidates for their certification under Laws 1997, First Special
Session chapter 4, article 5, section 22, as amended by Laws 1999, chapter 241, article
9, section 46:
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 Any balance in the first year does not cancel but is available in the second year.
new text end

new text begin Subd. 25. new text end

new text begin Statewide science, technology, engineering, and math initiative.
new text end

new text begin For a grant to the Science Museum of Minnesota for the statewide science, technology,
engineering, and math initiative:
new text end

	new text begin $ new text end	new text begin 1,500,000 new text end	new text begin ..... new text end	new text begin 2008 new text end
	new text begin $ new text end	new text begin 1,500,000 new text end	new text begin ..... new text end	new text begin 2009 new text end

new text begin Of this amount, $750,000 each year is available for the teacher resource center
and other related programs and $750,000 each year is available for the expansion and
support of the middle school math and science initiative including teacher workshops and
expanded outreach programs in classrooms.
new text end

new text begin This grant includes funding for an evaluation of the programs by an entity approved
by the Department of Education.
new text end

new text begin Subd. 26. new text end

new text begin St. Croix River Education District. new text end

new text begin For a grant to the St. Croix River
Education District:
new text end

	new text begin $ new text end	new text begin 450,000 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 450,000 new text end	new text begin ..... new text end	new text begin 2009 new text end

new text begin These funds must be used to:
new text end

new text begin (1) deliver standardized research-based professional development in
problem-solving, including response to intervention, scientifically based reading
instruction, and standards-aligned instruction and assessment;
new text end

new text begin (2) provide coaching to targeted districts throughout the state;
new text end

new text begin (3) deliver large scale training throughout the state;
new text end

new text begin (4) provide ongoing technical assistance to schools;
new text end

new text begin (5) assist with implementing professional development content into higher education
instructional curricula; and
new text end

new text begin (6) evaluate the effectiveness of project activities.
new text end

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

new text begin Subd. 27. new text end

new text begin After-school community learning grants. new text end

new text begin For after-school community
learning grants under Minnesota Statutes, section 124D.2211:
new text end

	new text begin $ new text end	new text begin 3,500,000 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 3,500,000 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 commissioner shall hire one full-time equivalent staff person to administer the
statewide after-school community learning grant program.
new text end

new text begin The Department of Education shall give strong consideration to an application
for a grant under this subdivision by Independent School District No. 625, St. Paul, on
behalf of the city of St. Paul to increase the number and quality of after-school and school
release time activities for children within the school district. A grant provided under this
subdivision to the Independent School District No. 625, St. Paul, in partnership with the
city of St. Paul must improve opportunities for learning provided by the district and by
nonprofit programs serving youth, and for staff development for library and park and
recreation workers who have frequent contact with children.
new text end

new text begin Subd. 28. new text end

new text begin Libre Academy Sober School. new text end

new text begin For a grant to the Libre Academy Sober
School in Litchfield:
new text end

new text begin $ new text end

new text begin 25,000 new text end

new text begin ..... new text end

new text begin 2008 new text end

new text begin This grant must not be paid unless the school receives a grant of $25,000 from
Meeker County.
new text end

Sec. 31. new text begin REVISOR'S INSTRUCTION.
new text end

new text begin In Minnesota Statutes, the revisor of statutes shall codify Minnesota Statutes,
section 124D.10, subdivision 23a, paragraph (b), as Minnesota Statutes, section 124D.10,
subdivision 26.
new text end

Sec. 32. new text begin REPEALER.
new text end

new text begin Minnesota Statutes 2006, section 124D.62, new text end new text begin is repealed.
new text end

ARTICLE 3

SPECIAL PROGRAMS

Section 1.

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

Subdivision 1.

Definitions.

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

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

(1) the sum of:

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

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

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

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

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

(1) Regular transportation is:

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

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

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

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

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

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

(2) Excess transportation is:

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

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

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

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

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

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

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

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

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

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

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

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

(5) "Nonpublic nonregular transportation" is:

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

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

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

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

new text begin EFFECTIVE DATE. new text end

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

Sec. 2.

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

Subd. 2.

Definitions.

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

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

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

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

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

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

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

new text begin EFFECTIVE DATE. new text end

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

Sec. 3.

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

Subd. 3.

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

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

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

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

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

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

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

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

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

deleted text begin (b) If requested by a school district for transition programs during the base year for
deleted text end deleted text begin less than the full school year, the commissioner may adjust the base revenue to reflect
deleted text end deleted text begin the expenditures that would have occurred during the base year had the program been
deleted text end deleted text begin 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 124D.65, subdivision 6, is amended to read:

Subd. 6.

Participation of nonpublic school pupils.

In counting the number of
pupils of limited English proficiency for purposes of this section, districts may include
pupils of limited English proficiency who attend nonpublic schools in the district. A
district which counts those pupils and receives aid pursuant to this section must offer
those pupils the same programs on the same terms that it offers to pupils of limited
English proficiency who attend the public school. A program provided for a nonpublic
school pupil pursuant to this subdivision deleted text begin must deleted text end new text begin may new text end be provided at a public school deleted text begin or deleted text end new text begin , new text end a
neutral site as defined in section 123B.41, subdivision 13 new text begin , the nonpublic school, or any
other suitable location new text end . Nonpublic school pupils served by a district's educational program
for pupils of limited English proficiency must be counted for average daily membership
pursuant to sections 126C.01, subdivisions 6 to 8, and 126C.19, subdivisions 1 to 4.

Sec. 5.

Minnesota Statutes 2006, section 125A.11, subdivision 1, is amended to read:

Subdivision 1.

Nonresident tuition rate; other costs.

(a) For fiscal year 2006,
when a school district provides instruction and services outside the district of residence,
board and lodging, and any tuition to be paid, shall be paid by the district of residence.
The tuition rate to be charged for any child with a disability, excluding a pupil for whom
tuition is calculated according to section 127A.47, subdivision 7, paragraph (d), must be
the sum of (1) the actual cost of providing special instruction and services to the child
including a proportionate amount for special transportation and unreimbursed building
lease and debt service costs for facilities used primarily for special education, plus (2)
the amount of general education revenue and referendum aid attributable to the pupil,
minus (3) the amount of special education aid for children with a disability received
on behalf of that child, minus (4) if the pupil receives special instruction and services
outside the regular classroom for more than 60 percent of the school day, the amount of
general education revenue and referendum aid, excluding portions attributable to district
and school administration, district support services, operations and maintenance, capital
expenditures, and pupil transportation, attributable to that pupil for the portion of time
the pupil receives special instruction and services outside of the regular classroom. If
the boards involved do not agree upon the tuition rate, either board may apply to the
commissioner to fix the rate. Notwithstanding chapter 14, the commissioner must then set
a date for a hearing or request a written statement from each board, giving each board
at least ten days' notice, and after the hearing or review of the written statements the
commissioner must make an order fixing the tuition rate, which is binding on both school
districts. General education revenue and referendum new text begin equalization new text end aid attributable to a
pupil must be calculated using the resident district's average general education new text begin revenue
new text end and referendum deleted text begin revenue deleted text end new text begin equalization aid new text end per adjusted pupil unit.

(b) For fiscal year 2007 and later, when a school district provides special instruction
and services for a pupil with a disability as defined in section 125A.02 outside the district
of residence, excluding a pupil for whom an adjustment to special education aid is
calculated according to section 127A.47, subdivision 7, paragraph (e), special education
aid paid to the resident district must be reduced by an amount equal to (1) the actual
cost of providing special instruction and services to the pupil, including a proportionate
amount for special transportation and unreimbursed building lease and debt service
costs for facilities used primarily for special education, plus (2) the amount of general
education revenue and referendum new text begin equalization new text end aid attributable to that pupil, minus (3)
the amount of special education aid for children with a disability received on behalf of
that child, minus (4) if the pupil receives special instruction and services outside the
regular classroom for more than 60 percent of the school day, the amount of general
education revenue and referendum new text begin equalization new text end aid, excluding portions attributable to
district and school administration, district support services, operations and maintenance,
capital expenditures, and pupil transportation, attributable to that pupil for the portion of
time the pupil receives special instruction and services outside of the regular classroom.
General education revenue and referendum new text begin equalization new text end aid attributable to a pupil must be
calculated using the resident district's average general education revenue and referendum
new text begin equalization new text end aid per adjusted pupil unit. Special education aid paid to the district or
cooperative providing special instruction and services for the pupil must be increased
by the amount of the reduction in the aid paid to the resident district. Amounts paid
to cooperatives under this subdivision and section 127A.47, subdivision 7, shall be
recognized and reported as revenues and expenditures on the resident school district's
books of account under sections 123B.75 and 123B.76. If the resident district's special
education aid is insufficient to make the full adjustment, the remaining adjustment shall be
made to other state aid due to the district.

(c) Notwithstanding paragraphs (a) and (b) and section 127A.47, subdivision 7,
paragraphs (d) and (e), a charter school where more than 30 percent of enrolled students
receive special education and related services, new text begin a care and treatment site approved under
section 125A.515, new text end an intermediate district, a special education cooperative, or a school
district that served as the applicant agency for a group of school districts for federal
special education aids for fiscal year 2006 may apply to the commissioner for authority to
charge the resident district an additional amount to recover any remaining unreimbursed
costs of serving pupils with a disability. The application must include a description of the
costs and the calculations used to determine the unreimbursed portion to be charged to the
resident district. Amounts approved by the commissioner under this paragraph must be
included in the tuition billings or aid adjustments under paragraph (a) or (b), or section
127A.47, subdivision 7, paragraph (d) or (e), as applicable.

(d) For purposes of this subdivision and section 127A.47, subdivision 7, paragraphs
(d) and (e), "general education revenue and referendum aid" means the sum of the general
education revenue according to section 126C.10, subdivision 1, excluding alternative
teacher compensation revenue, plus the referendum aid according to section 126C.17,
subdivision 7, as adjusted according to section 127A.47, subdivision 7, paragraphs (a)
to (c).

new text begin EFFECTIVE DATE. new text end

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

Sec. 6.

Minnesota Statutes 2006, section 125A.14, is amended to read:

125A.14 deleted text begin SUMMER PROGRAMS deleted text end new text begin EXTENDED SCHOOL YEAR new text end .

A district may provide deleted text begin summer programs deleted text end new text begin extended school year services new text end for children
with a disability living within the district and nonresident children temporarily placed in
the district pursuant to section 125A.15 or 125A.16. Prior to March 31 or 30 days after the
child with a disability is placed in the district, whichever is later, the providing district
shall give notice to the district of residence of any nonresident children temporarily placed
in the district pursuant to section 125A.15 or 125A.16, of its intention to provide these
programs. Notwithstanding any contrary provisions in sections 125A.15 and 125A.16, the
district providing the special instruction and services must apply for special education
aid for the deleted text begin summer program deleted text end new text begin extended school year services new text end . The unreimbursed actual cost
of providing the program for nonresident children with a disability, including the cost of
board and lodging, may be billed to the district of the child's residence and must be paid
by the resident district. Transportation costs must be paid by the district responsible
for providing transportation pursuant to section 125A.15 or 125A.16 and transportation
aid must be paid to that district.

Sec. 7.

Minnesota Statutes 2006, section 125A.75, subdivision 1, is amended to read:

Subdivision 1.

Travel aid.

The state must pay each district one-half of the sum
actually expended by a district, based on mileage, for necessary travel of essential
personnel providing home-based new text begin or community-based new text end services to children with a disability
under age five and their families.

Sec. 8.

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

new text begin EFFECTIVE DATE. new text end

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

Sec. 9.

Minnesota Statutes 2006, section 125A.75, is amended by adding a subdivision
to read:

new text begin Subd. 9. new text end

new text begin Litigation costs; annual report. new text end

new text begin (a) By November 30 of each year,
a school district must annually report the district's special education litigation costs,
including attorney fees and costs of due process hearings, to the commissioner of
education, consistent with the Uniform Financial Accounting and Reporting Standards.
new text end

new text begin (b) By January 15 of each year, the commissioner shall report school district special
education litigation costs to the house of representatives and the senate committees having
jurisdiction over kindergarten through grade 12 education finance.
new text end

Sec. 10.

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

Subdivision 1.

Definitions.

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

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

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

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

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

deleted text begin (e) deleted text end new text begin (d) new text end "Program growth factor" means 1.046 for fiscal year deleted text begin 2003, and 1.0 for fiscal
year 2004 deleted text end new text begin 2008 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 2008.
new text end

Sec. 11.

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

Subd. 2.

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

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

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

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

(3) for special instruction and services provided to any pupil by contracting with
public, private, or voluntary agencies other than school districts, in place of special
instruction and services provided by the district, 52 percent of the difference between
the amount of the contract and deleted text begin the amount of the basic revenue, as defined in section
126C.10, subdivision 2, special education aid, and any other aid earned on behalf of
the child deleted text end new text begin the general education revenue, excluding basic skills revenue and alternative
teacher compensation revenue, and referendum equalization aid attributable to a pupil,
calculated using the resident district's average general education revenue and referendum
equalization aid per adjusted pupil unit new text end for the fraction of the school day the pupil receives
services under the contract new text begin . This includes children who are residents of the state, receive
services under this subdivision and subdivision 1, and are placed in a care and treatment
facility by court action in a state that does not have a reciprocity agreement with the
commissioner under section 125A.155 as provided for in section 125A.79, subdivision 8 new text end ;

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

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

(6) 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) 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 .

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.

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. 12.

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

Subd. 4.

State total special education aid.

deleted text begin The state total special education aid
for fiscal year 2004 equals $530,642,000. deleted text end The state total special education aid deleted text begin for fiscal
year 2005 deleted text end equals deleted text begin $529,164,000 deleted text end new text begin $666,507,000 for fiscal year 2007, $707,138,000 for
fiscal year 2008, $739,655,000 for fiscal year 2009, $775,973,000 for fiscal year 2010,
and $814,222,000 for fiscal year 2011 new text end . The state total special education aid for later
fiscal years equals:

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

(2) the program growth factor; times

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

new text begin EFFECTIVE DATE. new text end

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

Sec. 13.

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

Subd. 5.

School district special education aid.

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

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

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

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

new text begin EFFECTIVE DATE. new text end

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

Sec. 14.

Minnesota Statutes 2006, section 125A.79, subdivision 1, is amended to read:

Subdivision 1.

Definitions.

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

(a) "Unreimbursed special education cost" means the sum of the following:

(1) expenditures for teachers' salaries, contracted services, supplies, equipment, and
transportation services eligible for revenue under section 125A.76; plus

(2) expenditures for tuition bills received under sections 125A.03 to 125A.24 and
125A.65 for services eligible for revenue under section 125A.76, subdivision 2; minus

(3) revenue for teachers' salaries, contracted services, supplies, and equipment under
section 125A.76; minus

(4) tuition receipts under sections 125A.03 to 125A.24 and 125A.65 for services
eligible for revenue under section 125A.76, subdivision 2.

(b) "General revenue" means the sum of the general education revenue according to
section 126C.10, subdivision 1, excluding alternative teacher compensation revenue, plus
the total qualifying referendum revenue specified in paragraph (e) minus transportation
sparsity revenue minus total operating capital revenue.

(c) "Average daily membership" has the meaning given it in section 126C.05.

(d) "Program growth factor" means 1.02 for fiscal year deleted text begin 2003, and 1.0 for fiscal
year 2004 deleted text end new text begin 2008 new text end and later.

(e) "Total qualifying referendum revenue" means two-thirds of the district's total
referendum revenue as adjusted according to section 127A.47, subdivision 7, paragraphs
(a) to (c), for fiscal year 2006, one-third of the district's total referendum revenue for fiscal
year 2007, and none of the district's total referendum revenue for fiscal year 2008 and later.

Sec. 15.

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

Subd. 5.

Initial excess cost aid.

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

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

(2) deleted text begin 70 percent of the difference between (i) the increase in the district's unreimbursed
special education cost between the base year as defined in section 125A.76, subdivision 1,
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.

Sec. 16.

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 $107,384,000 for
fiscal year 2007, $110,173,000 for fiscal year 2008, $112,641,000 for fiscal year 2009,
$112,791,000 for fiscal year 2010, and $113,138,000 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. 17.

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 deleted text begin the 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 the 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 base revenue attributable to the pupil new text end .

Sec. 18.

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

Subd. 7.

Alternative attendance programs.

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

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

(b) General education aid paid to a district serving a pupil in programs listed in this
subdivision must be increased by an amount equal to the referendum equalization aid
attributable to the pupil in the nonresident district.

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

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

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

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

new text begin EFFECTIVE DATE. new text end

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

Sec. 19.

Laws 2005, First Special Session chapter 5, article 3, section 18, subdivision
2, as amended by Laws 2006, chapter 282, article 7, section 12, is amended to read:

Subd. 2.

Special education; regular.

For special education aid under Minnesota
Statutes, section 125A.75:

	$	559,485,000	.....	2006
	$	deleted text begin 528,106,000 deleted text end new text begin 652,791,000 new text end	.....	2007

The 2006 appropriation includes $83,078,000 for 2005 and $476,407,000 for 2006.

The 2007 appropriation includes $52,934,000 for 2006 and deleted text begin $475,172,000 deleted text end new text begin
$599,857,000 new text end for 2007.

new text begin EFFECTIVE DATE. new text end

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

Sec. 20.

Laws 2005, First Special Session chapter 5, article 3, section 18, subdivision
5, as amended by Laws 2006, chapter 282, article 7, section 15, is amended to read:

Subd. 5.

Special education; excess costs.

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

	$	106,453,000	.....	2006
	$	deleted text begin 104,333,000 deleted text end new text begin 106,120,000 new text end	.....	2007

The 2006 appropriation includes $37,455,000 for 2005 and $68,998,000 for 2006.

The 2007 appropriation includes $34,602,000 for 2006 and deleted text begin $69,731,000 deleted text end new text begin $71,518,000 new text end
for 2007.

EFFECTIVE DATE.

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

Sec. 21.

Laws 2005, First Special Session chapter 5, article 3, section 18, subdivision
6, as amended by Laws 2006, chapter 282, article 7, section 16, is amended to read:

Subd. 6.

Transition for disabled students.

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

	$	9,300,000	.....	2006
	$	deleted text begin 8,781,000 deleted text end new text begin 9,473,000 new text end	.....	2007

The 2006 appropriation includes $1,380,000 for 2005 and $7,920,000 for 2006.

The 2007 appropriation includes $880,000 for 2006 and deleted text begin $7,901,000 deleted text end new text begin $8,593,000 new text end
for 2007.

EFFECTIVE DATE.

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

Sec. 22.

Laws 2006, chapter 263, article 3, section 15, is amended to read:

Sec. 15. SPECIAL EDUCATION TUITION BILLING FOR FISCAL YEARS
2006 deleted text begin AND deleted text end new text begin , new text end 2007 new text begin , AND 2008 new text end .

(a) Notwithstanding Minnesota Statutes, sections 125A.11, subdivision 1, paragraph
(a), and 127A.47, subdivision 7, paragraph (d), for fiscal year 2006 an intermediate
district, special education cooperative, or school district that served as an applicant
agency for a group of school districts for federal special education aids for fiscal year
2006 is not subject to the uniform special education tuition billing calculations, but may
instead continue to bill the resident school districts for the actual unreimbursed costs
of serving pupils with a disability as determined by the intermediate district new text begin , special
education cooperative, or school district new text end .

(b) Notwithstanding Minnesota Statutes, section 125A.11, subdivision 1, paragraph
(c), for fiscal year 2007 only, an deleted text begin applicant district deleted text end new text begin agency exempted from the uniform
special education tuition billing calculations for fiscal year 2006 under paragraph (a)
new text end may apply to the commissioner for deleted text begin a waiver deleted text end new text begin an exemption new text end from the uniform special
education tuition calculations and aid adjustments under Minnesota Statutes, sections
125A.11, subdivision 1, paragraph (b), and 127A.47, subdivision 7, paragraph (e). The
commissioner must grant the deleted text begin waiver deleted text end new text begin exemption new text end within 30 days of receiving the following
information from the intermediate district new text begin , special education cooperative, or school district new text end :

(1) a detailed description of the applicant district's methodology for calculating
special education tuition for fiscal years 2006 and 2007, as required by the applicant
district to recover the full cost of serving pupils with a disability;

(2) sufficient data to determine the total amount of special education tuition actually
charged for each student with a disability, as required by the applicant district to recover
the full cost of serving pupils with a disability in fiscal year 2006; and

(3) sufficient data to determine the amount that would have been charged for each
student for fiscal year 2006 using the uniform tuition billing methodology according
to Minnesota Statutes, sections 125A.11, subdivision 1, or 127A.47, subdivision 7,
as applicable.

new text begin (c) Notwithstanding Minnesota Statutes, section 125A.11, subdivision 1, paragraph
(c), for fiscal year 2008 only, an agency granted an exemption from the uniform special
education tuition billing calculations and aid adjustments for fiscal year 2007 under
paragraph (b) may apply to the commissioner for a one-year extension of the exemption
granted under paragraph (b). The commissioner must grant the extension within 30 days
of receiving the request.
new text end

EFFECTIVE DATE.

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

Sec. 23. new text begin TRANSITION PROGRAM - DISABLED REVENUE FISCAL YEAR
2007.
new text end

new text begin Notwithstanding Minnesota Statutes, section 124D.454, subdivision 5, the state total
transition program - disabled revenue entitlement for fiscal year 2007 is $9,546,000.
new text end

Sec. 24. 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 703,075,000 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 736,403,000 new text end	new text begin ..... new text end	new text begin 2009 new text end

new text begin The 2008 appropriation includes $66,650,000 for 2007 and $636,425,000 for 2008.
new text end

new text begin The 2009 appropriation includes $70,713,000 for 2008 and $665,690,000 for 2009.
new text end

new text begin Subd. 3. new text end

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

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

	new text begin $ new text end	new text begin 1,538,000 new text end	new text begin ..... new text end	new text begin 2008 new text end
	new text begin $ new text end	new text begin 1,729,000 new text end	new text begin ..... new text end	new text begin 2009 new text end

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

new text begin Subd. 4. new text end

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

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

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

new text begin The 2008 appropriation includes $22,000 for 2007 and $232,000 for 2008.
new text end

new text begin The 2009 appropriation includes $25,000 for 2008 and $259,000 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 109,242,000 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 111,816,000 new text end	new text begin ..... new text end	new text begin 2009 new text end

new text begin The 2008 appropriation includes $35,866,000 for 2007 and $73,376,000 for 2008.
new text end

new text begin The 2009 appropriation includes $36,797,000 for 2008 and $75,019,000 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 955,000 new text end

new text begin ..... new text end

new text begin 2008 new text end

new text begin The 2008 appropriation includes $955,000 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. 25. new text begin REPEALER.
new text end

new text begin (a) new text end new text begin Minnesota Statutes 2006, sections 125A.10; and 125A.75, subdivision 6, new text end new text begin are
repealed.
new text end

new text begin (b) 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 123A.44, is amended to read:

123A.44 CITATION.

Sections 123A.441 to 123A.446 may be cited as the "Cooperative deleted text begin Secondary deleted text end
Facilities Grant Act."

new text begin EFFECTIVE DATE. new text end

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

Sec. 2.

Minnesota Statutes 2006, section 123A.441, is amended to read:

123A.441 POLICY AND PURPOSE.

Because of the rates of decline in school-aged population, population shifts and
economic changes that the state has experienced in recent years and anticipates in future
years, and because in some instances local districts have not, and will not be able to
provide the required construction funds through local property taxes, the purpose of the
cooperative deleted text begin secondary deleted text end facilities grant program is to provide an incentive to encourage
cooperation in making available to all deleted text begin secondary deleted text end students those educational programs,
services and facilities that are most efficiently and effectively provided by a cooperative
effort of deleted text begin several deleted text end school districts. The policy and purpose of sections 123A.442 to
123A.446 is to use the credit of the state, to a limited degree, to provide grants to
cooperating groups of districts to improve and expand the educational opportunities and
facilities available to their deleted text begin secondary deleted text end students.

new text begin EFFECTIVE DATE. new text end

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

Sec. 3.

Minnesota Statutes 2006, section 123A.442, is amended to read:

123A.442 APPROVAL AUTHORITY; APPLICATION FORMS.

Subdivision 1.

Approval by commissioner.

To the extent money is available, the
commissioner may approve projects from applications submitted under section 123A.443.
The grant money must be used only to acquire, construct, remodel or improve the building
or site of a cooperative deleted text begin secondary deleted text end facility under contracts to be entered into within 15
months after the date on which each grant is awarded.

Subd. 2.

Cooperation and combination.

Districts that new text begin have not already
consolidated and new text end receive a cooperative deleted text begin secondary deleted text end facilities grant deleted text begin after May 1, 1991, deleted text end shall:

(1) submit a new text begin consolidation new text end plan deleted text begin as set forth in deleted text end new text begin under new text end section for
approval by the deleted text begin State Board of Education before December 31, 1999, or deleted text end Department of
Education deleted text begin after December 30, 1999 deleted text end ; and

(2) hold a referendum on the question of deleted text begin combination deleted text end new text begin consolidation new text end no later than
four years after a grant is awarded under subdivision 1.

The districts are eligible for deleted text begin cooperation and combination deleted text end new text begin consolidation new text end revenue
under section deleted text begin 123A.39, subdivision 3 deleted text end new text begin 123A.485 new text end .

new text begin Subd. 3. new text end

new text begin Consolidated districts. new text end

new text begin A school district that has consolidated with
another school district since July 1, 1980, is eligible for a cooperative facilities grant.
new text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 4.

Minnesota Statutes 2006, section 123A.443, is amended to read:

123A.443 GRANT APPLICATION PROCESS.

Subdivision 1.

Qualification.

Any group of districts new text begin or a consolidated district new text end
that meets the criteria required under subdivision 2 may apply for an incentive grant for
construction of a new deleted text begin secondary deleted text end facility or for remodeling and improving an existing
deleted text begin secondary deleted text end facility. A grant for new construction must not exceed the lesser of deleted text begin $5,000,000 deleted text end new text begin
$20,000,000 new text end or 75 percent of the approved construction costs of a cooperative deleted text begin secondary deleted text end
education facility. A grant for remodeling and improving an existing facility must not
exceed deleted text begin $200,000 deleted text end new text begin the lesser of $10,000,000, or 75 percent of the approved remodeling
costs new text end .

Subd. 2.

Review by commissioner.

(a) A group of districts new text begin or a consolidated district
new text end that submits an application for a grant must submit a proposal to the commissioner for
review and comment under section 123B.71. The commissioner shall prepare a review
and comment on the proposed facility by July 1 of an odd-numbered year, regardless of
the amount of the capital expenditure required to acquire, construct, remodel or improve
the deleted text begin secondary deleted text end facility. The commissioner shall not approve an application for an incentive
grant for any deleted text begin secondary deleted text end facility unless the facility receives a favorable review and
comment under section 123B.71 and the following criteria are met:

(1) new text begin the applicant is a consolidated district or new text end a minimum of two or more districts deleted text begin ,
with kindergarten to grade 12 enrollments in each district of no more than 1,200 pupils,
enter deleted text end new text begin that have entered new text end into a joint powers agreement;

(2) new text begin for a group of districts, new text end a joint powers board representing all participating
districts is established under section 471.59 to govern the cooperative deleted text begin secondary deleted text end facility;

deleted text begin (3) the planned secondary facility will result in the joint powers district meeting the
requirements of Minnesota Rules, parts 3500.2010 and 3500.2110;
deleted text end

deleted text begin (4) at least 198 pupils would be served in grades 10 to 12, 264 pupils would be
served in grades 9 to 12, or 396 pupils would be served in grades 7 to 12;
deleted text end

deleted text begin (5) deleted text end new text begin (3) for a group of districts, new text end no more than one superintendent is employed by the
joint powers board as a result of the cooperative deleted text begin secondary deleted text end facility agreement;

deleted text begin (6) deleted text end new text begin (4) new text end a statement of need is submitted, that may include reasons why the current
deleted text begin secondary deleted text end facilities are inadequate, unsafe or inaccessible to persons with disabilities;

deleted text begin (7) deleted text end new text begin (5) new text end an educational plan is prepared, that includes input from both community and
professional staff;

deleted text begin (8) deleted text end new text begin (6) for a group of districts, new text end a combined seniority list for all participating districts
is developed by the joint powers board;

deleted text begin (9) deleted text end new text begin (7) for a group of districts, new text end an education program is developed that provides for
more learning opportunities and course offerings, including the offering of advanced
placement courses, for students than is currently available in any single member district;

deleted text begin (10) deleted text end new text begin (8) new text end a plan is developed for providing instruction of any resident students in
other districts when distance to the deleted text begin secondary deleted text end education facility makes attendance at the
facility unreasonably difficult or impractical; and

deleted text begin (11) deleted text end new text begin (9) for a secondary facility, new text end the joint powers board established under clause (2)
discusses with technical colleges located in the area how vocational education space in
the cooperative deleted text begin secondary deleted text end facility could be jointly used for secondary and postsecondary
purposes.

(b) To the extent possible, the joint powers board is encouraged to provide for
severance pay or for early retirement incentives under section 122A.48, for any teacher
or administrator, as defined under section 122A.40, subdivision 1, who is placed on
unrequested leave as a result of the cooperative deleted text begin secondary deleted text end facility agreement.

(c) For the purpose of paragraph (a), clause deleted text begin (8) deleted text end new text begin (6) new text end , each district must be considered
to have started school each year on the same date.

(d) The districts may develop a plan that provides for the location of social service,
health, and other programs serving pupils and community residents within the cooperative
deleted text begin secondary deleted text end facility. The commissioner shall consider this plan when preparing a review
and comment on the proposed facility.

(e) The districts must schedule and conduct a meeting on library services. The
school districts, in cooperation with the regional public library system and its appropriate
member libraries, must discuss the possibility of including jointly operated library services
at the cooperative deleted text begin secondary deleted text end facility.

(f) The board of a district that has reorganized under section 123A.37 or 123A.48
and that is applying for a grant for remodeling or improving an existing facility may act in
the place of a joint powers board to meet the criteria of this subdivision.

Subd. 3.

Reorganizing districts.

A district that is a member of a joint powers
board established under subdivision 2 and that is planning to reorganize under section
123A.45, 123A.46, or 123A.48 must notify the joint powers board one year in advance of
the effective date of the reorganization. Notwithstanding section 471.59 or any other law
to the contrary, the board of a district that reorganizes under section 123A.45, 123A.46, or
123A.48 may appoint representatives to the joint powers board who will serve on the joint
powers board for two years after the effective date of the reorganization if authorized in
the agreement establishing the joint powers board to govern the cooperative deleted text begin secondary deleted text end
facility. These representatives shall have the same powers as representatives of any other
school district under the joint powers agreement.

Subd. 4.

District procedures.

A joint powers board of a deleted text begin secondary deleted text end district
established under subdivision 2 or a school board of a reorganized district that intends
to apply for a grant must adopt a resolution stating the proposed costs of the project,
the purpose for which the costs are to be incurred, and an estimate of the dates when
the facilities for which the grant is requested will be contracted for and completed.
Applications for the state grants must be accompanied by (a) a copy of the resolution, (b)
a certificate by the clerk and treasurer of the joint powers board showing the current
outstanding indebtedness of each member district, and (c) a certificate by the county
auditor of each county in which a portion of the joint powers district lies showing the
information in the auditor's official records that is required to be used in computing the
debt limit of the district under section 475.53, subdivision 4. The clerk's and treasurer's
certificate must show, as to each outstanding bond issue of each member district, the
amount originally issued, the purpose for which issued, the date of issue, the amount
remaining unpaid as of the date of the resolution, and the interest rates and due dates
and amounts of principal thereon. Applications and necessary data must be in the
form prescribed by the commissioner deleted text begin and the rules of the State Board of Education
before December 31, 1999, and after December 30, 1999, in the form prescribed by the
commissioner deleted text end . Applications must be received by the commissioner by September 1 of an
odd-numbered year. When an application is received, the commissioner shall obtain from
the commissioner of revenue, and from the Public Utilities Commission when required,
the information in their official records that is required to be used in computing the debt
limit of the joint powers district under section 475.53, subdivision 4.

Subd. 5.

Award of grants.

By November 1 of the odd-numbered year, the
commissioner shall examine and consider all applications for grants, and if any district is
found not qualified, the commissioner shall promptly notify that board.

A grant award is subject to verification by the district as specified in subdivision
8. A grant award for a new facility must not be made until the site of the deleted text begin secondary deleted text end
facility has been determined. A grant award to remodel or improve an existing facility
must not be made until the districts have reorganized. If the total amount of the approved
applications exceeds the amount that is or can be made available, the commissioner shall
new text begin first award grants to districts that will close at least one existing school building, and then,
to the extent funds remain, new text end allot the available amount equally between deleted text begin the deleted text end new text begin any other new text end
approved applicant districts. The commissioner shall promptly certify to each qualified
district the amount, if any, of the grant awarded to it.

Subd. 6.

Collocation grant.

A group of districts that receives a grant for a new
facility under subdivision 4 is also eligible to receive an additional grant in the amount of
$1,000,000. To receive the additional grant, the group of districts must develop a plan
under subdivision 2, paragraph (d), that provides for the location of a significant number
of noneducational student and community service programs within the cooperative
deleted text begin secondary deleted text end facility.

Subd. 7.

Referendum; bond issue.

Within 180 days after being awarded a grant
for a new facility under subdivision 5, the joint powers board must submit the question
of authorizing the borrowing of funds for the deleted text begin secondary deleted text end facility to the voters of the joint
powers district at a special election, which may be held in conjunction with the deleted text begin annual deleted text end new text begin
general new text end election of the school board members of the member districts. The question
submitted must state the total amount of funding needed from all sources. A majority of
those voting in the affirmative on the question is sufficient to authorize the joint powers
board to accept the grant and to issue the bonds on public sale deleted text begin in accordance with deleted text end new text begin
according to new text end chapter 475. The clerk of the joint powers board must certify the vote of
the bond election to the commissioner. If the question is approved by the voters, the
commissioner shall notify the approved applicant districts that the grant amount certified
under subdivision 5 is available and appropriated for payment under this subdivision.
If a majority of those voting on the question do not vote in the affirmative, the grant
must be canceled.

Subd. 8.

Contract.

Each grant must be evidenced by a contract between the board
and the state acting through the commissioner. The contract obligates the state to pay to
the board an amount computed according to subdivision 5, and according to a schedule,
and terms and conditions acceptable to the commissioner of finance.

Subd. 9.

Consolidation.

A group of districts that operates a cooperative deleted text begin secondary deleted text end
facility that was acquired, constructed, remodeled, or improved under this section and
implements consolidation proceedings according to section 123A.48, may propose a
temporary school board structure in the petition or resolution required under section
123A.48, subdivision 2. The districts may propose the number of existing school board
members of each district to become members of the board of the consolidated district
and a method to gradually reduce the membership to six or seven. The proposal must
be approved, disapproved, or modified by the deleted text begin state board of education deleted text end new text begin commissioner new text end .
The election requirements of section 123A.48, subdivision 20, do not apply to a
proposal approved by the state board. Elections conducted after the effective date of the
consolidation are subject to the Minnesota Election Law.

new text begin EFFECTIVE DATE. new text end

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

Sec. 5.

Minnesota Statutes 2006, section 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. 6.

Minnesota Statutes 2006, section 123B.54, is amended to read:

123B.54 DEBT SERVICE APPROPRIATION.

(a) deleted text begin $21,624,000 deleted text end new text begin $8,866,000 new text end in fiscal year deleted text begin 2008 deleted text end new text begin 2010 new text end and deleted text begin $20,403,000 deleted text end new text begin $6,631,000 new text end in
fiscal year deleted text begin 2009 deleted text end new text begin 2011 new text end and later are appropriated from the general fund to the commissioner
of education for payment of debt service equalization aid under section 123B.53.

(b) The appropriations in paragraph (a) must be reduced by the amount of any
money specifically appropriated for the same purpose in any year from any state fund.

Sec. 7.

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

Subd. 3.

Health and safety revenue.

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

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

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

new text begin EFFECTIVE DATE. new text end

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

Sec. 8.

Minnesota Statutes 2006, section 123B.63, subdivision 3, is amended to read:

Subd. 3.

Capital project levy referendum.

A district may levy the local tax
rate approved by a majority of the electors voting on the question to provide funds for
an approved project. The election must take place no more than five years before the
estimated date of commencement of the project. The referendum must be held on a date
set by the board. A referendum for a project not receiving a positive review and comment
by the commissioner under section 123B.71 must be approved by at least 60 percent of the
voters at the election. The referendum may be called by the school board and may be held:

(1) separately, before an election for the issuance of obligations for the project
under chapter 475; or

(2) in conjunction with an election for the issuance of obligations for the project
under chapter 475; or

(3) notwithstanding section 475.59, as a conjunctive question authorizing both the
capital project levy and the issuance of obligations for the project under chapter 475. Any
obligations authorized for a project may be issued within five years of the date of the
election.

The ballot must provide a general description of the proposed project, state the
estimated total cost of the project, state whether the project has received a positive or
negative review and comment from the commissioner, state the maximum amount of the
capital project levy as a percentage of net tax capacity, state the amount that will be raised
by that local tax rate in the first year it is to be levied, and state the maximum number of
years that the levy authorization will apply.

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

"Shall the capital project levy proposed by the board of .......... School District
No. .......... be approved?"

If approved, the amount provided by the approved local tax rate applied to the net
tax capacity for the year preceding the year the levy is certified may be certified for the
number of years new text begin , not to exceed ten, new text end approved.

In the event a conjunctive question proposes to authorize both the capital project
levy and the issuance of obligations for the project, appropriate language authorizing the
issuance of obligations must also be included in the question.

The district must notify the commissioner of the results of the referendum.

Sec. 9.

Minnesota Statutes 2006, section 123B.71, subdivision 9, is amended to read:

Subd. 9.

Information required.

A school board proposing to construct a facility
described in subdivision 8 shall submit to the commissioner a proposal containing
information including at least the following:

(1) the geographic area and population to be served, preschool through grade 12
student enrollments for the past five years, and student enrollment projections for the
next five years;

(2) a list of existing facilities by year constructed, their uses, and an assessment of
the extent to which alternate facilities are available within the school district boundaries
and in adjacent school districts;

(3) a list of the specific deficiencies of the facility that demonstrate the need for a
new or renovated facility to be provided, and a list of the specific benefits that the new
or renovated facility will provide to the students, teachers, and community users served
by the facility;

(4) the relationship of the project to any priorities established by the school district,
educational cooperatives that provide support services, or other public bodies in the
service area;

(5) a specification of how the project will increase community use of the facility
and whether and how the project will increase collaboration with other governmental or
nonprofit entities;

(6) a description of the project, including the specification of site and outdoor space
acreage and square footage allocations for classrooms, laboratories, and support spaces;
estimated expenditures for the major portions of the project; and the dates the project will
begin and be completed;

(7) a specification of the source of financing the project; the scheduled date for
a bond issue or school board action; a schedule of payments, including debt service
equalization aid; and the effect of a bond issue on local property taxes by the property
class and valuation;

(8) an analysis of how the proposed new or remodeled facility will affect school
district operational or administrative staffing costs, and how the district's operating budget
will cover any increased operational or administrative staffing costs;

(9) a description of the consultation with local or state road and transportation
officials on school site access and safety issues, and the ways that the project will address
those issues;

(10) a description of how indoor air quality issues have been considered and a
certification that the architects and engineers designing the facility will have professional
liability insurance;

(11) as required under section 123B.72, for buildings coming into service after
July 1, 2002, a certification that the plans and designs for the extensively renovated or
new facility's heating, ventilation, and air conditioning systems will meet or exceed
code standards; will provide for the monitoring of outdoor airflow and total airflow of
ventilation systems; and will provide an indoor air quality filtration system that meets
ASHRAE standard 52.1;

(12) a specification of any desegregation requirements that cannot be met by any
other reasonable means;

(13) a specification, if applicable, of how the facility will utilize environmentally
sustainable school facility design concepts new text begin , and a description of how the facility will
incorporate energy conservation measures according to section 123B.65, subdivision 1,
paragraph (a) new text end ; and

(14) a description of how the architects and engineers have considered the American
National Standards Institute Acoustical Performance Criteria, Design Requirements and
Guidelines for Schools of the maximum background noise level and reverberation times.

Sec. 10.

Minnesota Statutes 2006, section 126C.45, is amended to read:

126C.45 ICE ARENA LEVY.

(a) Each year, an independent school district operating and maintaining an ice arena,
may levy for the net operational costs of the ice arena. The levy may not exceed deleted text begin 90
percent of deleted text end the net actual costs of operation of the arena for the previous year. Net actual
costs are defined as operating costs less any operating revenues.

(b) Any district operating and maintaining an ice arena must demonstrate to the
satisfaction of the Office of Monitoring in the department that the district will offer equal
sports opportunities for male and female students to use its ice arena, particularly in areas
of access to prime practice time, team support, and providing junior varsity and younger
level teams for girls' ice sports and ice sports offerings.

Sec. 11.

Minnesota Statutes 2006, section 128D.11, subdivision 3, is amended to read:

Subd. 3.

No election.

Subject to the provisions of subdivisions 7 to 10, the school
district may also by a two-thirds majority vote of all the members of its board of education
and without any election by the voters of the district, issue and sell in each calendar year
general obligation bonds of the district in an amount not to exceed 5-1/10 per cent of the
net tax capacity of the taxable property in the district (plus, for calendar years 1990 to
2003, an amount not to exceed $7,500,000, and for calendar years 2004 to deleted text begin 2008 deleted text end new text begin 2013 new text end an
amount not to exceed $15,000,000; with an additional provision that any amount of bonds
so authorized for sale in a specific year and not sold can be carried forward and sold in
the year immediately following).

new text begin EFFECTIVE DATE. new text end

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

Sec. 12.

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; or

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

new text begin EFFECTIVE DATE. new text end

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

Sec. 13.

Minnesota Statutes 2006, section 275.065, subdivision 1, is amended to read:

Subdivision 1.

Proposed levy.

(a) Notwithstanding any law or charter to the
contrary, on or before September 15, each taxing authority, other than a school district,
shall adopt a proposed budget and shall certify to the county auditor the proposed or, in
the case of a town, the final property tax levy for taxes payable in the following year.

(b) On or before September 30, each school district shall certify to the county auditor
the proposed property tax levy for taxes payable in the following year. The school district
shall certify the proposed levy as:

(1) a specific dollar amount by school district fund, broken down between
voter-approved and non-voter-approved levies and between referendum market value
and tax capacity levies; or

(2) the maximum levy limitation certified by the commissioner of education
according to section 126C.48, subdivision 1.

(c) If the board of estimate and taxation or any similar board that establishes
maximum tax levies for taxing jurisdictions within a first class city certifies the maximum
property tax levies for funds under its jurisdiction by charter to the county auditor by
September 15, the city shall be deemed to have certified its levies for those taxing
jurisdictions.

(d) For purposes of this section, "taxing authority" includes all home rule and
statutory cities, towns, counties, school districts, and special taxing districts as defined
in section 275.066. Intermediate school districts that levy a tax under chapter 124 or
136D, joint powers boards established under sections 123A.44 to 123A.446, and Common
School Districts No. 323, Franconia, and No. 815, Prinsburg, are also special taxing
districts for purposes of this section.

new text begin (e) Notwithstanding this section and section 126C.48, a school district, on or before
October 8 and with the agreement of the school district's home county auditor, shall
certify to the county auditor the district's proposed property tax levy for taxes payable in
the following year.
new text end

Sec. 14. new text begin BONDING AUTHORIZATION.
new text end

new text begin To provide funds for the acquisition or betterment of school facilities, Independent
School District No. 625, St. Paul, may by two-thirds majority vote of all the members of
the board of directors issue general obligation bonds in one or more series for calendar
years 2008 through 2013, as provided in this section. The aggregate principal amount of
any bonds issued under this section for each calendar year must not exceed $15,000,000.
Issuance of the bonds is not subject to Minnesota Statutes, section 475.58 or 475.59.
The bonds must otherwise be issued as provided in Minnesota Statutes, chapter 475.
The authority to issue bonds under this section is in addition to any bonding authority
authorized by Minnesota Statutes, chapter 123B, or other law. The amount of bonding
authority authorized under this section must be disregarded in calculating the bonding
limit of Minnesota Statutes, chapter 123B, or any other law other than Minnesota Statutes,
section 475.53, subdivision 4.
new text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 15. new text begin TAX LEVY FOR DEBT SERVICE.
new text end

new text begin To pay the principal of and interest on bonds issued under section 2, Independent
School District No. 625, St. Paul, must levy a tax annually in an amount sufficient
under Minnesota Statutes, section 475.61, subdivisions 1 and 3, to pay the principal of
and interest on the bonds. The tax authorized under this section is in addition to the
taxes authorized to be levied under Minnesota Statutes, chapter 123B, 124D, or 126C, or
other law.
new text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 16. new text begin ADMINISTRATIVE LEASE LEVY; SPRING LAKE PARK.
new text end

new text begin Notwithstanding the instructional purposes limitation of Minnesota Statutes, section
126C.40, subdivision 1, Independent School District No. 16, Spring Lake Park, may
lease administrative space under Minnesota Statutes, section 126C.40, subdivision 1, if
the district can demonstrate to the satisfaction of the commissioner of education that
the administrative space is less expensive than instruction space that the district would
otherwise lease. A school district may not levy under this section for more than five years.
The commissioner must deny this levy authority unless the district passes a resolution
stating its intent to lease instructional space under Minnesota Statutes, section 126C.40,
subdivision 1, if the commissioner does not grant authority under this section. The
resolution must also certify that a lease of administrative space under this section is less
expensive than the district's proposed instructional lease. Levy authority under this section
shall not exceed the total levy authority under Minnesota Statutes, section 126C.40,
subdivision 1, paragraph (e).
new text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 17. new text begin HEALTH AND SAFETY REVENUE; CLEARBROOK-GONVICK.
new text end

new text begin Notwithstanding Minnesota Statutes, section 123B.57, Independent School District
No. 2311, Clearbrook-Gonvick, may use health and safety revenue for the demolition of
the Gonvick school building. The district must recognize the revenue under this section
in fiscal year 2008.
new text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 18. new text begin ENVIRONMENTAL REMEDIATION LOAN; EDEN
VALLEY-WATKINS.
new text end

new text begin Subdivision 1. new text end

new text begin Environmental remediation loan revenue. new text end

new text begin In fiscal year 2008 only,
Independent School District No. 463, Eden Valley-Watkins, may receive environmental
remediation loan revenue equal to up to $126,000. The school district may recognize
this revenue in fiscal year 2007. The district must approve a board resolution to receive
revenue according to this section.
new text end

new text begin Subd. 2. new text end

new text begin Levy. new text end

new text begin For taxes payable in 2008-2012, Independent School District No.
463, Eden Valley-Watkins, must levy an amount equal to its environmental remediation
loan revenue times .20.
new text end

new text begin Subd. 3. new text end

new text begin General education revenue withholding. new text end

new text begin For fiscal years 2009-2012,
the Department of Education shall reduce the general education aid under Minnesota
Statutes, section 126C.13, subdivision 4, in an amount equal to the district's environmental
remediation loan revenue times .25.
new text end

Sec. 19. new text begin APPROPRIATIONS.
new text end

new text begin Subdivision 1. new text end

new text begin Department of Education. new text end

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

new text begin Subd. 2. new text end

new text begin Health and safety revenue. new text end

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

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

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

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

new text begin Subd. 3. new text end

new text begin Debt service equalization. new text end

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

	new text begin $ new text end	new text begin 14,813,000 new text end	new text begin ..... new text end	new text begin 2008 new text end
	new text begin $ new text end	new text begin 11,124,000 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 $13,048,000 for 2008.
new text end

new text begin The 2009 appropriation includes $1,449,000 for 2008 and $9,675,000 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 Deferred maintenance aid. new text end

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

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

new text begin The 2008 appropriation includes $0 for 2007 and $3,290,000 for 2008.
new text end

new text begin The 2009 appropriation includes $365,000 for 2008 and $2,302,000 for 2009.
new text end

new text begin Subd. 6. new text end

new text begin Equity in telecommunications access. new text end

new text begin For equity in telecommunications
access, according to Minnesota Statutes, section 125B.26:
new text end

	new text begin $ new text end	new text begin 7,895,000 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 7,895,000 new text end	new text begin ..... new text end	new text begin 2009 new text end

new text begin The base for this appropriation for fiscal year 2010 and later is $7,000,000.
new text end

new text begin Subd. 7. new text end

new text begin Security reimbursement aid. new text end

new text begin For Independent School District No. 38,
Red Lake, for onetime security reimbursement aid to improve infrastructure needs in the
Red Lake School District as a result of the March 21, 2005, school shooting:
new text end

new text begin $ new text end

new text begin 132,000 new text end

new text begin ..... new text end

new text begin 2008 new text end

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

new text begin Subd. 8. new text end

new text begin Eden Valley-Watkins loan. new text end

new text begin For Independent School District No. 463,
Eden Valley-Watkins, for an environmental remediation loan:
new text end

new text begin $ new text end

new text begin 126,000 new text end

new text begin ..... new text end

new text begin 2008 new text end

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.79, is amended by adding a
subdivision to read:

new text begin Subd. 9. new text end

new text begin Elimination of reserve accounts. new text end

new text begin A school board shall eliminate all
reserve accounts established in the school district's general fund under Minnesota Statutes
before July 1, 2006, for which no specific authority remains in statute as of June 30,
2007. Any balance in the district's reserved for bus purchases account as of June 30,
2007, shall be transferred to the reserved account for operating capital in the school
district's general fund. Any balance in other reserved accounts established in the school
district's general fund under Minnesota Statutes before July 1, 2006, for which no specific
authority remains in statute as of June 30, 2007, shall be transferred to the school district's
unreserved general fund balance. A school board may, upon adoption of a resolution by
the school board, establish a designated account for any program for which a reserved
account has been eliminated.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective June 30, 2007.
new text end

Sec. 2.

Minnesota Statutes 2006, section 124D.111, subdivision 1, is amended to read:

Subdivision 1.

School lunch aid computation.

Each school year, the state must pay
participants in the national school lunch program the amount of cents for each full
paid, reduced, and free student lunch served to students.

Sec. 3. new text begin OPERATING COST DIFFERENTIAL STUDY.
new text end

new text begin (a) The commissioner of education shall work, in cooperation with the Regional
Educational Laboratory (REL) Midwest, to determine the differential cost of operating a
school district in Minnesota using sound economic and statistical reasoning.
new text end

new text begin (b) The study shall identify the true cost of operating a school district in different
regions across the state. As part of the study, the commissioner shall:
new text end

new text begin (1) consider all districts in the state individually and regionally based on
demography, economic region, geography, and any other region as determined by REL
Midwest to better illustrate the cost differential observed;
new text end

new text begin (2) examine the economic factors that contribute to the costs underlying the basic
operation of a school district including land costs, salaries, hourly wages, health care
costs, transportation costs, energy costs, telecommunication costs, sparsity, housing prices,
administrative costs, and any other factor that REL Midwest believes, through sound
economic reasoning, contributes to the underlying cost of operating a school district; and
new text end

new text begin (3) construct a study that controls for factors that vary across school districts
in the state including class size, teacher credentials and education, limited English
proficiency, poverty, mobility, athletics opportunities available to each student, advanced
placement course offerings, postsecondary education options, international baccalaureate
opportunities, college in the schools offerings, foreign language options, academic clubs,
extracurricular opportunities, career and technical programs, and any other criteria for
which REL Midwest believes, through sound economic reasoning, differentially alters the
quality or the operating cost of a school district.
new text end

new text begin (c) The commissioner must report on the findings and make recommendations on
statewide policies to the legislative committees having jurisdiction over kindergarten
through grade 12 education before December 15, 2008.
new text end

Sec. 4. new text begin SCHOOL DISTRICT FORMULA ADJUSTMENTS.
new text end

new text begin Subdivision 1. new text end

new text begin Tax rate adjustment; adjusted net tax capacity (ANTC).
new text end

new text begin The commissioner of education must adjust each tax rate established under Minnesota
Statutes, chapters 120A to 127A, by multiplying the rate by the ratio of the statewide net
tax capacity as calculated using the class rates in effect for assessment year 2006 to the
statewide total net tax capacity as calculated using the class rates in effect for assessment
year 2007, in both cases using taxable market values for assessment year 2006.
new text end

new text begin Subd. 2. new text end

new text begin Equalizing factors; ANTC. new text end

new text begin The commissioner of education must
adjust each equalizing factor based upon adjusted net tax capacity per actual pupil
unit established under Minnesota Statutes, chapters 120A to 127A, by multiplying the
equalizing factor by the ratio of the statewide net tax capacity as calculated using the class
rates in effect for assessment year 2007 to the statewide total net tax capacity as calculated
using the class rates in effect for assessment year 2006, in both cases using taxable market
values for assessment year 2006.
new text end

new text begin Subd. 3. new text end

new text begin Equalizing factors. new text end

new text begin The commissioner of education must adjust each
equalizing factor based upon the referendum market value per actual pupil unit established
under Minnesota Statutes, chapters 120A to 127A, by multiplying the equalizing factor
by the ratio of the statewide total referendum market value as calculated using the class
rates in effect for assessment year 2007 to the statewide total referendum market value
as calculated using the class rates in effect for assessment year 2006, in both cases using
referendum market values for assessment year 2006.
new text end

new text begin Subd. 4. new text end

new text begin Maximum effort exception. new text end

new text begin Notwithstanding the calculations under
subdivision 1, the commissioner of education must make the tax rate calculation changes
for the maximum effort capital loan program, defined under Minnesota Statutes, section
126C.63, by multiplying the rate by the ratio of the total net tax capacity for maximum
effort school districts as calculated using the class rates in effect for assessment year 2006
to the total net tax capacity for maximum effort school districts using the class rates in
effect for assessment year 2007, in both cases using taxable market values for assessment
year 2006.
new text end

Sec. 5. new text begin FUND TRANSFER.
new text end

new text begin Subdivision 1. new text end

new text begin Brainerd. new text end

new text begin Notwithstanding Minnesota Statutes, section 123B.79
or 123B.80, on June 30, 2007, Independent School District No. 181, Brainerd, may
permanently transfer up to $750,000 from its reserved for operating capital account to its
undesignated general fund balance without making a levy reduction.
new text end

new text begin Subd. 2. new text end

new text begin Campbell-Tintah. new text end

new text begin Notwithstanding Minnesota Statutes, section 123B.79
or 123B.80, on June 30, 2007, Independent School District No. 852, Campbell-Tintah,
may permanently transfer up to $100,000 from its reserved for operating capital account
to its undesignated general fund without making a levy reduction.
new text end

new text begin Subd. 3. new text end

new text begin Comfrey. new text end

new text begin Notwithstanding Minnesota Statutes, section 123B.79
or 123B.80, on June 30, 2007, Independent School District No. 81, Comfrey, may
permanently transfer up to $250,000 from its reserved for operating capital account to its
undesignated general fund balance without making a levy reduction.
new text end

new text begin Subd. 4. new text end

new text begin Floodwood. new text end

new text begin Notwithstanding Minnesota Statutes, section 123B.79
or 123B.80, on June 30, 2007, Independent School District No. 698, Floodwood,
may transfer up to $227,000 from its reserved for disabled accessibility account to its
undesignated general fund balance without making a levy reduction.
new text end

new text begin Subd. 5. new text end

new text begin International Falls. new text end

new text begin Notwithstanding Minnesota Statutes, section 123B.79
or 123B.80, on June 30, 2007, Independent School District No. 361, International Falls,
may permanently transfer up to $100,000 from its reserved for operating capital account
to its undesignated general fund balance without making a levy reduction.
new text end

new text begin Subd. 6. new text end

new text begin Jackson County Central. new text end

new text begin Notwithstanding Minnesota Statutes, section
123B.79 or 123B.80, on June 30, 2007, Independent School District No. 2895, Jackson
County Central, may permanently transfer up to $300,000 from its reserved for operating
capital account to its undesignated general fund balance without making a levy reduction.
new text end

new text begin Subd. 7. new text end

new text begin Red Rock Central. new text end

new text begin Notwithstanding Minnesota Statutes, section 123B.79
or 123B.80, on June 30, 2007, Independent School District No. 2884, Red Rock Central,
may permanently transfer up to $81,000 from its reserved for disabled accessibility
account to its undesignated general fund balance without making a levy reduction.
new text end

new text begin Subd. 8. new text end

new text begin Windom. new text end

new text begin Notwithstanding Minnesota Statutes, section 123B.79 or
123B.80, on June 30, 2007, Independent School District No. 177, Windom, may transfer
up to $50,000 from its reserved for operating capital account to its undesignated general
fund balance without making a levy reduction.
new text end

new text begin Subd. 9. new text end

new text begin Holdingford. new text end

new text begin Notwithstanding Minnesota Statutes, sections 123B.79,
123B.80, and 475.61, subdivision 4, Independent School District No. 738, Holdingford,
may make a permanent transfer of $150,000 of its certified excess debt redemption fund
balance to its undesignated general fund balance without making a levy reduction.
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. 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 School lunch aid. new text end

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

	new text begin $ new text end	new text begin 12,021,000 new text end	new text begin ..... new text end	new text begin 2008 new text end
	new text begin $ new text end	new text begin 12,165,000 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 and kindergarten milk. new text end

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

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

new text begin Subd. 4. new text end

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

new text begin For summer school 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

Sec. 7. new text begin REPEALER.
new text end

new text begin Minnesota Statutes 2006, section 123B.749, new text end new text begin is repealed.
new text end

ARTICLE 6

LIBRARIES

Section 1.

Minnesota Statutes 2006, section 134.31, is amended by adding a
subdivision to read:

new text begin Subd. 4a. new text end

new text begin Services to the blind and physically handicapped. new text end

new text begin The Minnesota
Department of Education shall provide specialized services to the blind and physically
handicapped through the Minnesota Library for the Blind and Physically Handicapped
under a cooperative plan with the National Library Services for the Blind and Physically
Handicapped of the Library of Congress.
new text end

Sec. 2. 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 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 8,863,000 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 9,030,000 new text end	new text begin ..... new text end	new text begin 2009 new text end

new text begin The 2008 appropriation includes $857,000 for 2007 and $8,006,000 for 2008.
new text end

new text begin The 2009 appropriation includes $889,000 for 2008 and $8,141,000 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 993,000 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 1,093,000 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 $903,000 for 2008.
new text end

new text begin The 2009 appropriation includes $100,000 for 2008 and $993,000 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 1,920,000 new text end	new text begin ..... new text end	new text begin 2008 new text end
	new text begin $ new text end	new text begin 2,000,000 new text end	new text begin ..... new text end	new text begin 2009 new text end

new text begin The 2008 appropriation includes $120,000 for 2007 and $1,800,000 for 2008.
new text end

new text begin The 2009 appropriation includes $200,000 for 2008 and $1,800,000 for 2009.
new text end

ARTICLE 7

EARLY CHILDHOOD EDUCATION

Section 1.

Minnesota Statutes 2006, section 119A.52, is amended to read:

119A.52 DISTRIBUTION OF APPROPRIATION.

new text begin (a) new text end The commissioner of education must distribute money appropriated for that
purpose to federally designated Head Start programs to expand services and to serve
additional low-income children. Migrant and Indian reservation programs must be initially
allocated money based on the programs' share of federal funds. The remaining money
must be initially allocated to the remaining local agencies based equally on the agencies'
share of federal funds and on the proportion of eligible children in the agencies' service
area who are not currently being served. A Head Start deleted text begin grantee deleted text end new text begin program new text end must be funded
at a per child rate equal to its contracted, federally funded base level at the start of the
fiscal year. In allocating funds under this paragraph, the commissioner of education
must assure that each Head Start program in existence in 1993 is allocated no less
funding in any fiscal year than was allocated to that program in fiscal year 1993. Before
paying money to the programs, the commissioner must notify each program of its initial
allocation, how the money must be used, and the number of low-income children to be
served with the allocation based upon the federally funded per child rate. Each program
must present a plan under section 119A.535. For any deleted text begin grantee deleted text end new text begin program new text end that cannot utilize
its full allocation new text begin at the beginning of the fiscal year new text end , the commissioner must reduce the
allocation proportionately. Money available after the initial allocations are reduced must
be redistributed to eligible deleted text begin grantees deleted text end new text begin programs new text end .

new text begin (b) The commissioner must develop procedures to make payments to programs
based upon the number of children reported to be enrolled during the required time
period of program operations. Enrollment is defined by federal Head Start regulations.
The procedures must include a reporting schedule, corrective action plan requirements,
and financial consequences to be imposed on programs that do not meet full enrollment
after the period of corrective action. Programs reporting chronic underenrollment, as
defined by the commissioner, will have their subsequent program year allocation reduced
proportionately. Funds made available by prorating payments and allocations to programs
with reported underenrollment will be made available to the extent funds exist to fully
enrolled Head Start programs through a form and manner prescribed by the department.
new text end

Sec. 2.

Minnesota Statutes 2006, section 121A.17, subdivision 5, is amended to read:

Subd. 5.

Developmental screening program information.

The board must inform
each resident family with a child eligible to participate in the developmental screening
program about the availability of the program and the state's requirement that a child
receive a developmental screening or provide health records indicating that the child
received a comparable developmental screening from a public or private health care
organization or individual health care provider not later than 30 days after the first
day of attending kindergarten in a public school. A school district must inform all
resident families with eligible children under age seven that their children may receive
a developmental screening conducted either by the school district or by a public or
private health care organization or individual health care provider new text begin and that the screening
is not required if a statement signed by the child's parent or guardian is submitted to the
administrator or other person having general control and supervision of the school that
the child has not been screened new text end .

Sec. 3.

Minnesota Statutes 2006, section 121A.19, is amended to read:

121A.19 DEVELOPMENTAL SCREENING AID.

Each school year, the state must pay a district for each child or student screened by
the district according to the requirements of section 121A.17. The amount of state aid for
each child or student screened shall be: (1) deleted text begin $50 deleted text end new text begin $60 new text end for a child screened at age three; (2)
deleted text begin $40 deleted text end new text begin $50 new text end for a child screened at age four; (3) deleted text begin $30 deleted text end new text begin $40 new text end for a child screened at age five or
six prior to kindergarten; and (4) deleted text begin $30 deleted text end new text begin $40 new text end for a student screened within 30 days after first
enrolling in a public school kindergarten if the student has not previously been screened
according to the requirements of section 121A.17. If this amount of aid is insufficient,
the district may permanently transfer from the general fund an amount that, when added
to the aid, is sufficient. Developmental screening aid shall not be paid for any student
who is screened more than 30 days after the first day of attendance at a public school
kindergarten, except if a student transfers to another public school kindergarten within
30 days after first enrolling in a Minnesota public school kindergarten program. In this
case, if the student has not been screened, the district to which the student transfers may
receive developmental screening aid for screening that student when the screening is
performed within 30 days of the transfer date.

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.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 new text begin and to enhance the skills of parents and other relatives
in providing for their children's learning and development new text end ;

(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

new text begin The programs must include learning experiences for children, parents, and other
relatives that promote children's early literacy skills. new text end The deleted text begin programs deleted text end new text begin program new text end 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. 5.

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

new text begin Subd. 13. new text end

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

new text begin (a) An early
childhood family education program must submit a biennial plan addressing the
requirements of subdivision 2 for approval by the commissioner. The plan must also
describe how the program provides parenting education and ensures participation of
families representative of the school district. A school district must submit the plan for
approval by the commissioner in the form and manner prescribed by the commissioner.
One-half of districts, as determined by the commissioner, must first submit a biennial plan
by April 1, 2009, and the remaining districts must first submit a plan by April 1, 2010.
new text end

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

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

Sec. 6.

Minnesota Statutes 2006, section 124D.135, subdivision 1, is amended to read:

Subdivision 1.

Revenue.

The revenue for early childhood family education
programs for a school district equals $112 for fiscal year 2007 new text begin and $120 for fiscal year
2008 new text end and later, times the greater of:

(1) 150; or

(2) the number of people under five years of age residing in the district on October 1
of the previous school year.

new text begin EFFECTIVE DATE. new text end

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

Sec. 7.

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. 8.

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. 9.

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. 10.

Minnesota Statutes 2006, section 124D.15, subdivision 3, is amended to read:

Subd. 3.

Program requirements.

A school readiness program provider must:

(1) assess each child's cognitive skills when the child enters and again before the
child leaves the program to inform program planning and promote kindergarten readiness;

(2) provide comprehensive program content based on early childhood research and
professional practice that is focused on children's cognitive skills and development and
prepares children for the transition to kindergarten new text begin , including early literacy skills new text end ;

(3) arrange for early childhood screening and appropriate referral;

(4) involve parents in program planning and decision making;

(5) coordinate with relevant community-based services; and

(6) cooperate with adult basic education programs and other adult literacy programs.

Sec. 11. 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 21,106,000 new text end	new text begin ..... new text end	new text begin 2008 new text end
	new text begin $ new text end	new text begin 21,888,000 new text end	new text begin ..... new text end	new text begin 2009 new text end

new text begin The 2008 appropriation includes $1,796,000 for 2007 and $19,310,000 for 2008.
new text end

new text begin The 2009 appropriation includes $2,145,000 for 2008 and $19,743,000 for 2009.
new text end

new text begin Subd. 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 3,815,000 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 4,061,000 new text end	new text begin ..... new text end	new text begin 2009 new text end

new text begin The 2008 appropriation includes $288,000 for 2007 and $3,527,000 for 2008.
new text end

new text begin The 2009 appropriation includes $391,000 for 2008 and $3,670,000 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 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 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 readiness assessment initiative and intervention
program. new text end

new text begin For the kindergarten readiness 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

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

new text begin The 2008 appropriation includes $195,000 for 2007 and $1,112,000 for 2008.
new text end

new text begin The 2009 appropriation includes $123,000 for 2008 and $693,000 for 2009.
new text end

new text begin Subd. 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 aid. 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.

Minnesota Statutes 2006, section 124D.531, subdivision 4, is amended to
read:

Subd. 4.

Adult basic education program aid limit.

(a) Notwithstanding
subdivisions 2 and 3, the total adult basic education aid for a program per prior year
contact hour must not exceed $21 per prior year contact hour computed under subdivision
3, clause (2).

deleted text begin (b) For fiscal year 2004, the aid for a program under subdivision 3, clause (2),
adjusted for changes in program membership, must not exceed the aid for that program
under subdivision 3, clause (2), for fiscal year 2003 by more than the greater of eight
percent or $10,000.
deleted text end

deleted text begin (c) For fiscal year 2005, the aid for a program under subdivision 3, clause (2),
adjusted for changes in program membership, must not exceed the sum of the aid for that
program under subdivision 3, clause (2), and Laws 2003, First Special Session chapter 9,
article 9, section 8, paragraph (a), for the preceding fiscal year by more than the greater of
eight percent or $10,000.
deleted text end

deleted text begin (d) deleted text end new text begin (b) new text end For fiscal year 2006 and deleted text begin later deleted text end new text begin fiscal year 2007 new text end , the aid for a program under
subdivision 3, clause (2), adjusted for changes in program membership, must not exceed
the aid for that program under subdivision 3, clause (2), for the first preceding fiscal year
by more than the greater of eight percent or $10,000.

new text begin (c) For fiscal year 2008 and later, the aid for a program under subdivision 3,
clause (2), adjusted for changes in program membership, must not exceed the aid for
that program under subdivision 3, clause (2), for the first preceding fiscal year by more
than the greater of 11 percent or $14,000.
new text end

deleted text begin (e) deleted text end new text begin (d) new text end Adult basic education aid is payable to a program for unreimbursed costs
occurring in the program year as defined in section 124D.52, subdivision 3.

deleted text begin (f) deleted text end new text begin (e) new text end Any adult basic education aid that is not paid to a program because of the
program aid limitation under paragraph (a) must be added to the state total adult basic
education aid for the next fiscal year under subdivision 1. Any adult basic education aid
that is not paid to a program because of the program aid limitations under paragraph (b) deleted text begin , deleted text end new text begin
or new text end (c) deleted text begin , or (d), deleted text end must be reallocated among programs by adjusting the rate per contact hour
under subdivision 3, clause (2).

Sec. 2.

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

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

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

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 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, section 124D.531:
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 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 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 This is a onetime appropriation.
new text end

Sec. 4. new text begin APPROPRIATIONS; DEPARTMENT OF HEALTH.
new text end

new text begin Subdivision 1. new text end

new text begin Department of Health. new text end

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

new text begin Subd. 2. 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

Sec. 5. new text begin REPEALER.
new text end

new text begin Minnesota Statutes 2006, section 124D.531, subdivision 5, new text end new text begin is repealed.
new text end

ARTICLE 10

STATE AGENCIES

Section 1.

new text begin [127A.065] CROSS-SUBSIDY REPORT.
new text end

new text begin By January 10, the commissioner of education shall submit an annual report to the
legislative committees having jurisdiction over kindergarten through grade 12 education
on the amount each district is cross-subsidizing special education costs with general
education revenue.
new text end

Sec. 2.

Minnesota Statutes 2006, section 517.08, subdivision 1c, is amended to read:

Subd. 1c.

Disposition of license fee.

(a) Of the marriage license fee collected
pursuant to subdivision 1b, paragraph (a), $15 must be retained by the county. The local
registrar must pay $85 to the commissioner of finance to be deposited as follows:

(1) $50 in the general fund;

(2) $3 in the new text begin state government new text end special revenue fund to be appropriated to the
commissioner of deleted text begin education deleted text end new text begin public safety new text end for parenting time centers under section 119A.37;

(3) $2 in the special revenue fund to be appropriated to the commissioner of health
for developing and implementing the MN ENABL program under section 145.9255;

(4) $25 in the special revenue fund is appropriated to the commissioner of
employment and economic development for the displaced homemaker program under
section 116L.96; and

(5) $5 in the special revenue fund is appropriated to the commissioner of human
services for the Minnesota Healthy Marriage and Responsible Fatherhood Initiative under
section 256.742.

(b) Of the $30 fee under subdivision 1b, paragraph (b), $15 must be retained by the
county. The local registrar must pay $15 to the commissioner of finance to be deposited
as follows:

(1) $5 as provided in paragraph (a), clauses (2) and (3); and

(2) $10 in the special revenue fund is appropriated to the commissioner of
employment and economic development for the displaced homemaker program under
section 116L.96.

(c) The increase in the marriage license fee under paragraph (a) provided for in Laws
2004, chapter 273, and disbursement of the increase in that fee to the special fund for the
Minnesota Healthy Marriage and Responsible Fatherhood Initiative under paragraph (a),
clause (5), is contingent upon the receipt of federal funding under United States Code, title
42, section 1315, for purposes of the initiative.

Sec. 3. new text begin RULEMAKING AUTHORITY.
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. 4. new text begin COMPENSATION.
new text end

new text begin (a) The appropriations in this article, and any statutory appropriations from which
state employee compensation is paid from any fund, include an amount sufficient to fund a
compensation increase of at least 3.25 percent of the fiscal year 2007 compensation base
in fiscal year 2008, and compounded at the rate of 3.25 percent in fiscal year 2009. This
amount must be used for that purpose and no other.
new text end

new text begin (b) The set-asides in this article for the Board of Teaching and the Board of School
Administrators include an amount sufficient to fund a compensation increase of at
least 3.25 percent of the fiscal year 2007 compensation base in fiscal year 2008, and
compounded at the rate of 3.25 percent in fiscal year 2009. This amount must be used for
that purpose and no other.
new text end

Sec. 5. 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 23,329,000 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 23,873,000 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) $620,000 in fiscal year 2008 and $635,000 in fiscal year 2009 are for the Board
of Teaching.
new text end

new text begin (e) $163,000 in fiscal year 2008 and $172,000 in fiscal year 2009 are for the Board
of School Administrators.
new text end

new text begin (f) $50,000 each year is for the Duluth Children's Museum.
new text end

new text begin (g) $1,150,000 each year is for the value-added index assessment.
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

new text begin (i) None of the amounts appropriated under this subdivision may be used for
Minnesota's Washington, D.C., office.
new text end

Sec. 6. 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 11,517,000 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 11,849,000 new text end	new text begin ..... new text end	new text begin 2009 new text end

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

Sec. 7. new text begin APPROPRIATIONS; 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 6,942,000 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 7,117,000 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

ARTICLE 11

EDUCATION FORECAST ADJUSTMENTS

A. GENERAL EDUCATION

Section 1.

Laws 2005, First Special Session chapter 5, article 1, section 54, subdivision
2, as amended by Laws 2006, chapter 282, article 3, section 2, is amended to read:

Subd. 2

General education aid

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

	$	5,819,153,000	.....	2006
	$	deleted text begin 5,472,238,000 deleted text end new text begin 5,453,693,000 new text end	.....	2007

The 2006 appropriation includes $787,978,000 for 2005 and $5,031,175,000 for
2006.

The 2007 appropriation includes deleted text begin $513,848,000 deleted text end new text begin $518,218,000 new text end for 2006 and
deleted text begin $4,958,390,000 deleted text end new text begin $4,935,475,000 new text end for 2007.

new text begin EFFECTIVE DATE. new text end

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

Sec. 2.

Laws 2005, First Special Session chapter 5, article 1, section 54, subdivision 4,
is amended to read:

Subd. 4.

Enrollment options transportation.

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

	$	55,000	.....	2006
	$	deleted text begin 55,000 deleted text end new text begin 93,000 new text end	.....	2007

new text begin EFFECTIVE DATE. new text end

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

Sec. 3.

Laws 2005, First Special Session chapter 5, article 1, section 54, subdivision 5,
as amended by Laws 2006, chapter 282, article 7, section 2, is amended to read:

Subd. 5.

Abatement revenue.

For abatement aid under Minnesota Statutes, section
127A.49:

	$	909,000	.....	2006
	$	deleted text begin 1,026,000 deleted text end new text begin 765,000 new text end	.....	2007

The 2006 appropriation includes $187,000 for 2005 and $722,000 for 2006.

The 2007 appropriation includes $80,000 for 2006 and deleted text begin $946,000 deleted text end new text begin $685,000 new text end for 2007.

new text begin EFFECTIVE DATE. new text end

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

Sec. 4.

Laws 2005, First Special Session chapter 5, article 1, section 54, subdivision 6,
as amended by Laws 2006, chapter 282, article 7, section 3, is amended to read:

Subd. 6.

Consolidation transition.

For districts consolidating under Minnesota
Statutes, section 123A.485:

$

deleted text begin 527,000 deleted text end new text begin 388,000 new text end

.....

2007

The 2007 appropriation includes $0 for 2006 and deleted text begin $527,000 deleted text end new text begin $388,000 new text end for 2007.

new text begin EFFECTIVE DATE. new text end

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

Sec. 5.

Laws 2005, First Special Session chapter 5, article 1, section 54, subdivision 7,
as amended by Laws 2006, chapter 282, article 7, section 4, is amended to read:

Subd. 7.

Nonpublic pupil education aid.

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

	$	15,458,000	.....	2006
	$	deleted text begin 15,991,000 deleted text end new text begin 15,972,000 new text end	.....	2007

The 2006 appropriation includes $1,864,000 for 2005 and $13,594,000 for 2006.

The 2007 appropriation includes $1,510,000 for 2006 and deleted text begin $14,481,000 deleted text end new text begin $14,462,000 new text end
for 2007.

new text begin EFFECTIVE DATE. new text end

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

Sec. 6.

Laws 2005, First Special Session chapter 5, article 1, section 54, subdivision 8,
as amended by Laws 2006, chapter 282, article 7, section 5, is amended to read:

Subd. 8.

Nonpublic pupil transportation.

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

	$	21,371,000	.....	2006
	$	deleted text begin 20,843,000 deleted text end new text begin 21,133,000 new text end	.....	2007

The 2006 appropriation includes $3,274,000 for 2005 and $18,097,000 for 2006.

The 2007 appropriation includes $2,010,000 for 2006 and deleted text begin $18,833,000 deleted text end new text begin $19,123,000 new text end
for 2007.

new text begin EFFECTIVE DATE. new text end

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

B. EDUCATION EXCELLENCE

Sec. 7.

Laws 2005, First Special Session chapter 5, article 2, section 84, subdivision 2,
as amended by Laws 2006, chapter 282, article 7, section 6, is amended to read:

Subd. 2. Charter school building lease aid. For building lease aid under Minnesota
Statutes, section 124D.11, subdivision 4:

	$	25,331,000	.....	2006
	$	deleted text begin 27,806,000 deleted text end new text begin 27,795,000 new text end	.....	2007

The 2006 appropriation includes $3,173,000 for 2005 and $22,158,000 for 2006.

The 2007 appropriation includes $2,462,000 for 2006 and deleted text begin $25,344,000 deleted text end new text begin $25,333,000 new text end
for 2007.

new text begin EFFECTIVE DATE. new text end

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

Sec. 8.

Laws 2005, First Special Session chapter 5, article 2, section 84, subdivision 3,
as amended by Laws 2006, chapter 282, article 7, section 7, is amended to read:

Subd. 3.

Charter school startup aid.

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

	$	1,291,000	.....	2006
	$	deleted text begin 2,347,000 deleted text end new text begin 2,316,000 new text end	.....	2007

The 2006 appropriation includes $0 for 2005 and $1,291,000 for 2006.

The 2007 appropriation includes $143,000 for 2006 and deleted text begin $2,204,000 deleted text end new text begin $2,173,000 new text end
for 2007.

new text begin EFFECTIVE DATE. new text end

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

Sec. 9.

Laws 2005, First Special Session chapter 5, article 2, section 84, subdivision 4,
as amended by Laws 2006, chapter 282, article 7, section 8, is amended to read:

Subd. 4.

Integration aid.

For integration aid under Minnesota Statutes, section
124D.86, subdivision 5:

	$	59,404,000	.....	2006
	$	deleted text begin 58,405,000 deleted text end new text begin 58,075,000 new text end	.....	2007

The 2006 appropriation includes $8,545,000 for 2005 and $50,859,000 for 2006.

The 2007 appropriation includes $5,650,000 for 2006 and deleted text begin $52,755,000 deleted text end new text begin $52,425,000 new text end
for 2007.

new text begin EFFECTIVE DATE. new text end

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

Sec. 10.

Laws 2005, First Special Session chapter 5, article 2, section 84, subdivision
6, as amended by Laws 2006, chapter 282, article 7, section 9, is amended to read:

Subd. 6.

Interdistrict desegregation or integration transportation grants.

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

	$	6,032,000	.....	2006
	$	deleted text begin 10,134,000 deleted text end new text begin 8,169,000 new text end	.....	2007

new text begin EFFECTIVE DATE. new text end

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

Sec. 11.

Laws 2005, First Special Session chapter 5, article 2, section 84, subdivision
10, as amended by Laws 2006, chapter 282, article 7, section 11, is amended to read:

Subd. 10.

Tribal contract schools.

For tribal contract school aid under Minnesota
Statutes, section 124D.83:

	$	2,338,000	.....	2006
	$	deleted text begin 2,357,000 deleted text end new text begin 2,060,000 new text end	.....	2007

The 2006 appropriation includes $348,000 for 2005 and $1,990,000 for 2006.

The 2007 appropriation includes $221,000 for 2006 and deleted text begin $2,136,000 deleted text end new text begin $1,839,000 new text end
for 2007.

new text begin EFFECTIVE DATE. new text end

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

C. SPECIAL EDUCATION

Sec. 12.

Laws 2005, First Special Session chapter 5, article 3, section 18, subdivision
3, as amended by Laws 2006, chapter 282, article 7, section 13, is amended to read:

Subd. 3.

Aid for children with disabilities.

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

	$	1,527,000	.....	2006
	$	deleted text begin 1,624,000 deleted text end new text begin 1,410,000 new text end	.....	2007

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

new text begin EFFECTIVE DATE. new text end

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

Sec. 13.

Laws 2005, First Special Session chapter 5, article 3, section 18, subdivision
4, as amended by Laws 2006, chapter 282, article 7, section 14, is amended to read:

Subd. 4.

Travel for home-based services.

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

	$	198,000	.....	2006
	$	deleted text begin 195,000 deleted text end new text begin 224,000 new text end	.....	2007

The 2006 appropriation includes $28,000 for 2005 and $170,000 for 2006.

The 2007 appropriation includes $18,000 for 2006 and deleted text begin $177,000 deleted text end new text begin $206,000 new text end for 2007.

new text begin EFFECTIVE DATE. new text end

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

D. FACILITIES

Sec. 14.

Laws 2005, First Special Session chapter 5, article 4, section 25, subdivision
2, as amended by Laws 2006, chapter 282, article 7, section 18, is amended to read:

Subd. 2.

Health and safety revenue.

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

	$	823,000	.....	2006
	$	deleted text begin 352,000 deleted text end new text begin 249,000 new text end	.....	2007

The 2006 appropriation includes $211,000 for 2005 and $612,000 for 2006.

The 2007 appropriation includes $68,000 for 2006 and deleted text begin $284,000 deleted text end new text begin $181,000 new text end for 2007.

new text begin EFFECTIVE DATE. new text end

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

Sec. 15.

Laws 2005, First Special Session chapter 5, article 4, section 25, subdivision
3, as amended by Laws 2006, chapter 282, article 5, section 2, is amended to read:

Subd. 3.

Debt service equalization.

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

	$	27,206,000	.....	2006
	$	deleted text begin 18,410,000 deleted text end new text begin 18,395,000 new text end	.....	2007

The 2006 appropriation includes $4,654,000 for 2005 and $22,552,000 for 2006.

The 2007 appropriation includes $2,504,000 for 2006 and deleted text begin $15,906,000 deleted text end new text begin $15,891,000 new text end
for 2007.

new text begin EFFECTIVE DATE. new text end

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

E. NUTRITION

Sec. 16.

Laws 2005, First Special Session chapter 5, article 5, section 17, subdivision
3, as amended by Laws 2006, chapter 282, article 7, section 20, is amended to read:

Subd. 3.

Traditional school breakfast; kindergarten milk.

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

	$	4,856,000	.....	2006
	$	deleted text begin 5,044,000 deleted text end new text begin 5,175,000 new text end	.....	2007

new text begin EFFECTIVE DATE. new text end

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

F. EARLY CHILDHOOD EDUCATION

Sec. 17.

Laws 2005, First Special Session chapter 5, article 7, section 20, subdivision
2, as amended by Laws 2006, chapter 282, article 7, section 24, is amended to read:

Subd. 2.

School readiness.

For revenue for school readiness programs under
Minnesota Statutes, sections 124D.15 and 124D.16:

	$	9,528,000	.....	2006
	$	deleted text begin 9,020,000 deleted text end new text begin 9,087,000 new text end	.....	2007

The 2006 appropriation includes $1,415,000 for 2005 and $8,113,000 for 2006.

The 2007 appropriation includes $901,000 for 2006 and deleted text begin $8,119,000 deleted text end new text begin $8,186,000 new text end
for 2007.

new text begin EFFECTIVE DATE. new text end

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

Sec. 18.

Laws 2005, First Special Session chapter 5, article 7, section 20, subdivision
3, as amended by Laws 2006, chapter 282, article 2, section 24, is amended to read:

Subd. 3.

Early childhood family education aid.

For early childhood family
education aid under Minnesota Statutes, section 124D.135:

	$	15,105,000	.....	2006
	$	deleted text begin 17,792,000 deleted text end new text begin 17,639,000 new text end	.....	2007

The 2006 appropriation includes $1,859,000 for 2005 and $13,246,000 for 2006.

The 2007 appropriation includes $1,471,000 for 2006 and deleted text begin $16,321,000 deleted text end new text begin $16,168,000 new text end
for 2007.

new text begin EFFECTIVE DATE. new text end

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

Sec. 19.

Laws 2005, First Special Session chapter 5, article 7, section 20, subdivision
4, as amended by Laws 2006, chapter 282, article 2, section 25, is amended to read:

Subd. 4.

Health and developmental screening aid.

For health and developmental
screening aid under Minnesota Statutes, sections 121A.17 and 121A.19:

	$	3,000,000	.....	2006
	$	deleted text begin 2,997,000 deleted text end new text begin 2,880,000 new text end	.....	2007

The 2006 appropriation includes $417,000 for 2005 and $2,583,000 for 2006

The 2007 appropriation includes $287,000 for 2006 and deleted text begin $2,710,000 deleted text end new text begin $2,593,000 new text end
for 2007.

new text begin EFFECTIVE DATE. new text end

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

Sec. 20.

Laws 2006, chapter 282, article 2, section 28, subdivision 4, is amended to
read:

Subd. 4.

Early childhood Part C.

For the expansion of early childhood Part C
services:

$

deleted text begin 400,000 deleted text end new text begin -0- new text end

.....

2007

new text begin EFFECTIVE DATE. new text end

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

G. PREVENTION

Sec. 21.

Laws 2005, First Special Session chapter 5, article 8, section 8, subdivision 2,
as amended by Laws 2006, chapter 282, article 7, section 25, is amended to read:

Subd. 2. Community education aid. For community education aid under Minnesota
Statutes, section 124D.20:

	$	2,043,000	.....	2006
	$	deleted text begin 1,949,000 deleted text end new text begin 1,942,000 new text end	.....	2007

The 2006 appropriation includes $385,000 for 2005 and $1,658,000 for 2006.

The 2007 appropriation includes $184,000 for 2006 and deleted text begin $1,765,000 deleted text end new text begin $1,758,000 new text end
for 2007.

new text begin EFFECTIVE DATE. new text end

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

Sec. 22.

Laws 2005, First Special Session chapter 5, article 8, section 8, subdivision 5,
as amended by Laws 2006, chapter 282, article 7, section 27, is amended to read:

Subd. 5.

School-age care revenue.

For extended day aid under Minnesota Statutes,
section 124D.22:

	$	17,000	.....	2006
	$	deleted text begin 4,000 deleted text end new text begin 6,000 new text end	.....	2007

The 2006 appropriation includes $4,000 for 2005 and $13,000 for 2006.

The 2007 appropriation includes $1,000 for 2006 and deleted text begin $3,000 deleted text end new text begin $5,000 new text end for 2007.

new text begin EFFECTIVE DATE. new text end

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

H. SELF-SUFFICIENCY AND LIFELONG LEARNING

Sec. 23.

Laws 2005, First Special Session chapter 5, article 9, section 4, subdivision 2,
is amended to read:

Subd. 2.

Adult basic education aid.

For adult basic education aid under Minnesota
Statutes:

	$	36,518,000	.....	2006
	$	deleted text begin 36,540,000 deleted text end new text begin 37,486,000 new text end	.....	2007

The 2006 appropriation includes $5,707,000 for 2005 and $30,811,000 for 2006.

The 2007 appropriation includes deleted text begin $5,737,000 deleted text end new text begin $3,654,000 new text end for 2006 and deleted text begin $30,803,000 deleted text end new text begin
$33,832,000 new text end for 2007.

new text begin EFFECTIVE DATE. new text end

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

ARTICLE 12

TECHNICAL AND CONFORMING AMENDMENTS

Section 1.

Minnesota Statutes 2006, section 122A.628, subdivision 2, is amended to
read:

Subd. 2.

Revenue.

A school district that is selected to participate in the schools
mentoring schools program under this section may utilize its professional compensation
revenue under section deleted text begin 122A.4142 deleted text end new text begin 122A.414 new text end , subdivision 4, to pay regional training sites
for staff development and training services.

Sec. 2.

Minnesota Statutes 2006, section 123A.73, subdivision 8, is amended to read:

Subd. 8.

Taxable property.

As of the effective date of a consolidation of districts or
the dissolution of a district and its attachment to one or more existing districts pursuant
to chapter 123A, deleted text begin and subject to the conditions of section 126C.42, subdivision 1, deleted text end all
the taxable property which is in the newly created or enlarged district and which was
previously taxable for the payment of any statutory operating debt theretofore incurred by
any preexisting district of which the taxable property was a part prior to the consolidation
or dissolution and attachment shall remain taxable for the payment of that debt and shall
not become taxable for the payment of any statutory operating debt theretofore incurred
by any preexisting district of which the taxable property was not a part prior to the
consolidation or dissolution and attachment. The amount of statutory operating debt
attributable to that taxable property and to the newly created or enlarged district in which
it is located, and the amount of a preexisting district's reserved fund balance reserve
account for purposes of statutory operating debt reduction attributable to the newly created
or enlarged district, shall be apportioned according to the proportion which the adjusted
net tax capacity of that part of the preexisting district bears to the total adjusted net tax
capacity of the entire preexisting district at the time of the consolidation or dissolution
and attachment. This apportionment shall be made by the county auditor and shall
be incorporated as an annex to the order of the commissioner dividing the assets and
liabilities of the component districts. As used in this section, "statutory operating debt"
shall have the meaning given it in section 123B.81.

Sec. 3.

Minnesota Statutes 2006, section 123B.79, subdivision 6, is amended to read:

Subd. 6.

Account transfer for statutory operating debt.

On June 30 of each year,
a district may make a permanent transfer from the general fund account entitled "net
unreserved general fund balance since statutory operating debt" to the account entitled
"reserved fund balance reserve account for purposes of statutory operating debt reduction."
The amount of the transfer is limited to deleted text begin the lesser of (a) deleted text end the net unreserved general fund
balance deleted text begin , or (b) the sum of the remaining statutory operating debt levies authorized for all
future years according to section 126C.42, subdivision 1 deleted text end . If the net unreserved general
fund balance is less than zero, the district may not make a transfer.

Sec. 4.

Minnesota Statutes 2006, section 123B.81, subdivision 2, is amended to read:

Subd. 2.

Statutory operating debt.

If the amount of the operating debt is more
than 2-1/2 percent of the most recent fiscal year's expenditure amount for the funds
considered under subdivision 1, the net negative undesignated fund balance is defined as
"statutory operating debt" for the purposes of this section and deleted text begin sections deleted text end new text begin section new text end 123B.83
deleted text begin and 126C.42, subdivision 1 deleted text end .

Sec. 5.

Minnesota Statutes 2006, section 123B.81, subdivision 4, is amended to read:

Subd. 4.

Debt elimination.

If an audit or other verification procedure conducted
pursuant to subdivision 3 determines that a statutory operating debt exists, a district must
follow the procedures set forth in new text begin this new text end section deleted text begin 126C.42, subdivision 1, deleted text end to eliminate this
statutory operating debt.

Sec. 6.

Minnesota Statutes 2006, section 123B.81, subdivision 7, is amended to read:

Subd. 7.

Applicability.

This section deleted text begin and the provisions of section 126C.42,
subdivision 1, are deleted text end new text begin is new text end applicable only to common, independent, and special school districts
and districts formed pursuant to Laws 1967, chapter 822, as amended, and Laws 1969,
chapters 775 and 1060, as amended. This section deleted text begin and the provisions of section 126C.42,
subdivision 1, do deleted text end new text begin does new text end not apply to Independent School District No. 625.

Sec. 7.

Minnesota Statutes 2006, section 123B.83, subdivision 2, is amended to read:

Subd. 2.

Net unreserved general fund balances.

A school district must limit its
expenditures so that its net unreserved general fund balance does not constitute statutory
operating debt deleted text begin as defined in section 126C.42 deleted text end new text begin under section 123B.81 new text end .

Sec. 8.

Minnesota Statutes 2006, section 124D.34, subdivision 7, is amended to read:

Subd. 7.

Foundation staff.

The commissioner of education shall appoint the
executive director of the foundation from three candidates nominated and submitted by the
foundation board of directors and, as necessary, other staff who shall perform duties and
have responsibilities solely related to the foundation. The employees appointed are not
state employees under chapter 43A, but are covered under section 3.736. The employees
may participate in the state health and state insurance plans for employees in unclassified
service. The employees shall be supervised by the executive director.

The commissioner shall appoint deleted text begin from the Office of Lifework Development deleted text end a liaison
to the foundation board new text begin from the division in the department responsible for career and
technical education new text end .

Sec. 9.

Minnesota Statutes 2006, section 124D.65, subdivision 11, is amended to read:

Subd. 11.

Allocations from cooperative units.

For the purposes of this section
deleted text begin and section 125A.77 deleted text end , pupils of limited English proficiency enrolled in a cooperative
or intermediate school district unit shall be counted by the school district of residence,
and the cooperative unit shall allocate its approved expenditures for limited English
proficiency programs among participating school districts. Limited English proficiency
aid for services provided by a cooperative or intermediate school district shall be paid to
the participating school districts.

Sec. 10.

Minnesota Statutes 2006, section 125A.39, is amended to read:

125A.39 LOCAL INTERAGENCY AGREEMENTS.

School boards and the county board may enter into agreements to cooperatively
serve and provide funding for children with disabilities, under age five, and their families
within a specified geographic area.

The local interagency agreement must address, at a minimum, the following issues:

(1) responsibilities of local agencies on local interagency early intervention
committees (IEIC's), consistent with section 125A.38;

(2) assignment of financial responsibility for early intervention services;

(3) methods to resolve intraagency and interagency disputes;

(4) identification of current resources and recommendations about the allocation of
additional state and federal early intervention funds under the auspices of United States
Code, title 20, section 1471 et seq. (Part C, Public Law deleted text begin 102-119 deleted text end new text begin 108-446 new text end ) and United
States Code, title 20, section 631, et seq. (Chapter I, Public Law 89-313);

(5) data collection; and

(6) other components of the local early intervention system consistent with Public
Law 102-119.

Sec. 11.

Minnesota Statutes 2006, section 125A.42, is amended to read:

125A.42 PROCEDURAL SAFEGUARDS; PARENT AND CHILD RIGHTS.

(a) This section applies to local school and county boards for children from birth
through age two who are eligible for Part deleted text begin H deleted text end new text begin C new text end , Public Law deleted text begin 102-119 deleted text end new text begin 108-446 new text end , and their
families. This section must be consistent with the Individuals with Disabilities Education
Act, United States Code, title 20, sections 1471 to 1485 (Part deleted text begin H deleted text end new text begin C new text end , Public Law deleted text begin 102-119 deleted text end new text begin
108-446 new text end ), regulations adopted under United States Code, title 20, sections 1471 to 1485,
and sections 125A.259 to 125A.48.

(b) A parent has the right to:

(1) inspect and review early intervention records;

(2) prior written notice of a proposed action in the parents' native language unless it
is clearly not feasible to do so;

(3) give consent to any proposed action;

(4) selectively accept or decline any early intervention service; and

(5) resolve issues regarding the identification, evaluation, or placement of the child,
or the provision of appropriate early intervention services to the child and the child's
family through an impartial due process hearing pursuant to section 125A.46.

(c) The eligible child has the right to have a surrogate parent appointed by a school
district as required by section 125A.07.

Sec. 12.

Minnesota Statutes 2006, section 125A.44, is amended to read:

125A.44 COMPLAINT PROCEDURE.

(a) An individual or organization may file a written signed complaint with the
commissioner of the state lead agency alleging that one or more requirements of the Code
of Federal Regulations, title 34, part 303, is not being met. The complaint must include:

(1) a statement that the state has violated the Individuals with Disabilities Education
Act, United States Code, title 20, section 1471 et seq. (Part C, Public Law deleted text begin 102-119 deleted text end new text begin
108-446 new text end ) or Code of Federal Regulations, title 34, section 303; and

(2) the facts on which the complaint is based.

(b) The commissioner of the state lead agency shall receive and coordinate with
other state agencies the review and resolution of a complaint within 60 calendar days
according to the state interagency agreement required under section 125A.48. The
development and disposition of corrective action orders for nonschool agencies shall be
determined by the State Agency Committee (SAC). Failure to comply with corrective
orders may result in fiscal actions or other measures.

Sec. 13.

Minnesota Statutes 2006, section 125A.45, is amended to read:

125A.45 INTERAGENCY DISPUTE PROCEDURE.

(a) A dispute between a school board and a county board that is responsible for
implementing the provisions of section 125A.29 regarding early identification, child and
family assessment, service coordination, and IFSP development and implementation must
be resolved according to this subdivision when the dispute involves services provided
to children and families eligible under the Individuals with Disabilities Education Act,
United States Code, title 20, section 1471 et seq. (Part C, Public Law deleted text begin 102-119 deleted text end new text begin 108-446 new text end ).

(b) A dispute occurs when the school board and county board are unable to agree as
to who is responsible to coordinate, provide, pay for, or facilitate payment for services
from public and private sources.

(c) Written and signed disputes must be filed with the local primary agency.

(d) The local primary agency must attempt to resolve the matter with the involved
school board and county board and may request mediation from the commissioner of the
state lead agency for this purpose.

(e) When interagency disputes have not been resolved within 30 calendar days, the
local primary agency must request the commissioner of the state lead agency to review
the matter with the commissioners of health and human services and make a decision.
The commissioner must provide a consistent process for reviewing those procedures. The
commissioners' decision is binding subject to the right of an aggrieved party to appeal to
the state Court of Appeals.

(f) The local primary agency must ensure that eligible children and their families
receive early intervention services during resolution of a dispute. While a local dispute is
pending, the local primary agency must either assign financial responsibility to an agency
or pay for the service from the early intervention account under section 125A.35. If in
resolving the dispute, it is determined that the assignment of financial responsibility was
inappropriate, the responsibility for payment must be reassigned to the appropriate agency
and the responsible agency must make arrangements for reimbursing any expenditures
incurred by the agency originally assigned financial responsibility.

Sec. 14.

Minnesota Statutes 2006, section 125B.15, is amended to read:

125B.15 INTERNET ACCESS FOR STUDENTS.

(a) Recognizing the difference between school libraries, school computer labs, and
school media centers, which serve unique educational purposes, and public libraries,
which are designed for public inquiry, all computers at a school site with access to the
Internet available for student use must be equipped to restrict, including by use of
available software filtering technology or other effective methods, all student access
to material that is reasonably believed to be obscene or child pornography or material
harmful to minors under federal or state law.

(b) A school site is not required to purchase filtering technology if the school site
would incur more than incidental expense in making the purchase.

(c) A school district receiving technology revenue under section
must prohibit, including through use of available software filtering technology or other
effective methods, adult access to material that under federal or state law is reasonably
believed to be obscene or child pornography.

(d) A school district, its agents or employees, are immune from liability for failure
to comply with this section if they have made a good faith effort to comply with the
requirements of this section.

(e) "School site" means an education site as defined in section 123B.04, subdivision
1, or charter school under section 124D.10.

Sec. 15.

Minnesota Statutes 2006, section 126C.01, subdivision 9, is amended to read:

Subd. 9.

Training and experience index.

"Training and experience index"
means a measure of a district's teacher training and experience relative to the education
and experience of teachers in the state. The measure must be determined pursuant to
new text begin Minnesota Statutes 1996, new text end section 126C.11.

Sec. 16.

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

Subdivision 1.

Pupil unit.

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

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

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

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

(d) A kindergarten pupil who is not included in paragraph (c) is counted as .557 of a
pupil unit for fiscal year 2000 and thereafter.

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

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

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

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

Sec. 17.

Minnesota Statutes 2006, section 126C.48, subdivision 7, is amended to read:

Subd. 7.

Reporting.

For each tax settlement, the county auditor shall report
to each school district by fund, the district tax settlement revenue defined in section
123B.75, subdivision 5, paragraph (a), deleted text begin and the amount levied pursuant to section 126C.42,
subdivision 1, deleted text end on the form specified in section 276.10. The county auditor shall send to
the district a copy of the spread levy report specified in section 275.124.

Sec. 18.

Minnesota Statutes 2006, section 134.355, subdivision 9, is amended to read:

Subd. 9.

Telecommunications aid.

An application for regional library
telecommunications aid must, at a minimum, contain information to document the
following:

(1) the connections are adequate and employ an open network architecture that
will ensure interconnectivity and interoperability with school districts, postsecondary
education, or other governmental agencies;

(2) that the connection is established through the most cost-effective means and that
the regional library has explored and coordinated connections through school districts,
postsecondary education, or other governmental agencies;

(3) that the regional library system has filed an e-rate application; and

(4) other information, as determined by the commissioner of deleted text begin children, families, and
learning deleted text end new text begin education new text end , to ensure that connections are coordinated, efficient, and cost-effective,
take advantage of discounts, and meet applicable state standards.

The library system may include costs associated with cooperative arrangements with
postsecondary institutions, school districts, and other governmental agencies.

Sec. 19. new text begin REPEALER.
new text end

new text begin Minnesota Statutes 2006, sections 123A.22, subdivision 11; and 123B.81,
subdivision 8, new text end new text begin are repealed.
new text end